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George W. Bush Presidential Library
Collection: Executive Clerk, Office of The
Series: Saunders, G. Timothy (Tim) - Bill Files
Folder Title: 10/15/2001 [H. R. 1860]
Withdrawn/Redacted Material
The George W. Bush Library
DOCUMENT FORM
SUBJECT/TITLE
PAGES
DATE
RESTRICTION(S)
NO.
001
Memorandum
Enrolled Bill H.R. 1860 - Small Business Technology
1
10/05/2001
P6/b6;
Transfer Program Reauthorization Act of 2001 [page 3] -
To: POTUS - From: Mitchell E. Daniels, Jr.
COLLECTION TITLE:
Executive Clerk, Office Of the
SERIES:
Saunders, G. Timothy (Tim) - Bill Files
FOLDER TITLE:
10/15/2001 [H. R. 1860]
FRC ID:
779
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA]
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRA]
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advise between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(8) Release would disclose information concerning the regulation of
2201(3).
financial institutions [(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
Deed of Gift Restrictions
concerning wells [(b)(9) of the FOIA]
A. Closed by Executive Order 13526 governing access to national
security information.
B. Closed by statute or by the agency which originated the document.
C. Closed in accordance with restrictions contained in donor's deed
of gift.
Page 1 of 1
This document was prepared on Tuesday, July 02, 2013
OFFICE THE RESIDENT STATE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
THE PRESIDENT HAS SEEN 1:06
THE DIRECTOR
October 5, 2001
10-15-01
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDICAL
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT N/C
HUBBARD
CARD
IRASTORZA
HUGHES N/C
JOHNSON ok
1
ROVE
LINDSEY oh
BOLTEN N/C
SPELLINGS ok
HAGIN
MIERS NC
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO oh
GERSON
FLEISCHER
CLERK
GONZALES Abjection
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
RESPONSE:
APPROVED OCT 1. 5 2001
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
STATE DEFICE OF THE OFFICE THE PRESIDENT STATE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
01UC15PM11:07
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as,
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDanied
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
STATE DEFICE OF THE PRESIDENT o STATES UNITED RE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
UCI 5PM11:07
WASHINGTON, D.C. 20503
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
EXECUTIVE OFFICE OF THE PRESIDENT
SFITE OF THE THE STATE UNITED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
01 UCT 5PM11:07
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No
comment
(Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as-
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDIAMED
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
OCT. 4. 2001 4:23PM
NO. 5275 P. 2
SMALL BUSINESS
U.S. SMALL BUSINESS ADMINISTRATION
WASHINGTON, D.C. 20416
ADMINIST 1053
OFFICE OF THE ADMINISTRATOR
OCT 4 2001
The Honorable Mitch Daniels
Director
Office of Management and Budget
Washington, DC 20503
Dear Mr. Daniels:
This is in response to your request for views of the U.S. Small Business
Administration (SBA) on the enrolled bill, H.R. 1860, the "Small Business Technology
Transfer Program Reauthorization Act of 2001."
The SBA supports the President signing this bill. The bill, among other things,
authorizes the Small Business Technology Transfer (STTR) Program through fiscal year
2009, increases the Phase II award level to $750,000 and the percentage set-aside to 0.30
percent in fiscal year 2004 and each year thereafter. We believe this bill will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development.
The goal of the STTR Program is to link small businesses with creative ideas at
universities, non-profit scientific and educational institutions, and Federal laboratories to
advance technological innovation in Federal research and development programs.
Through this collaboration, high quality research is made available in the American
economy. Since the Program's authorization in 1992, and the issuance of the first awards
in 1994, the Federal agencies have awarded more than $236 million to small businesses,
with the research partners receiving more than $33 million of those funds.
SBA recommends that the President sign this bill.
HectorV. Sincerely, Bareto
Hector V. Barreto
Administrator
Federal Recycling Program
Printed on Recycled Paper
NATIONAL SCIENCE FOUNDATION
4201 WILSON BOULEVARD
ARLINGTON, VIRGINIA 22230
nsf
October 1, 2001
OFFICE OF THE
DEPUTY DIRECTOR
Honorable Mitchell E. Daniels. Jr.
Director
Office of Management and Budget
Washington, DC 20503
RE: Enrolled Bill Request - H.R. 1860
Dear Mr. Daniels:
Section 2 of the "Small Business Technology Transfer Program Reauthorization Act of
2001" would require the National Science Foundation to double the size of our Small
Business Technology Transfer Program in Fiscal Years 2004 and beyond. Section 4 of
the bill would require us to institute an outreach program to enhance the STTR Program.
Section 6 would require us to collect information from awardees for a database to be
maintained by the Small Business Administration.
These spending and administrative requirements would require us to devote approxi-
mately $7 million more to the STTR Program in FY04 and future budgets than currently
planned.
The Foundation recommends that the President sign this measure.
Thank you for the opportunity to comment on this enrolled bill.
Sincerely,
Joseph Bordogna
Deputy Director
Memo to the Record
Date: 06/22/2016
Collection: Executive Clerk, Office of the Saunders, G. Timothy (Tim)
Series: Bill Flies
Folder Title: 10/15/2001 [H. R. 1860]
RE: Small Business Technology Transfer Program Reauthorization Act of 2001
A copy of the report entitled "Small Business Technology Transfer Program Reauthorization Act
of 2001" is included at this location in this folder. It was not scanned. It can be viewed at
https://www.congress.gov/congressional-report/107th-congress/house-
report/213/1?q=%7B%22search223A%5B922Smal+Business+Fechnology+Transfer+Prog
ram+Reauthorization+Act+of+2001%229%5D%7D&resultIndex=1 If this link is broken, please
contact the George W. Bush Presidential Library archives.
R. 1860
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
To reauthorize the Small Business Technology Transfer Program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Small Business Technology
Transfer Program Reauthorization Act of 2001".
SEC. 2. EXTENSION OF PROGRAM AND EXPENDITURE AMOUNTS.
(a) IN GENERAL.-Section 9(n)(1) of the Small Business Act
(15 U.S.C. 638(n)(1)) is amended to read as follows:
"(1) REQUIRED EXPENDITURE AMOUNTS.-
"(A) IN GENERAL-With respect to each fiscal year
through fiscal year 2009, each Federal agency that has
an extramural budget for research, or research and develop-
ment, in excess of $1,000,000,000 for that fiscal year, shall
expend with small business concerns not less than the
percentage of that extramural budget specified in subpara-
graph (B), specifically in connection with STTR programs
that meet the requirements of this section and any policy
directives and regulations issued under this section.
"(B) EXPENDITURE AMOUNTS.-The percentage of the
extramural budget required to be expended by an agency
in accordance with subparagraph (A) shall be-
"(i) 0.15 percent for each fiscal year through fiscal
year 2003; and
"(ii) 0.3 percent for fiscal year 2004 and each fiscal
year thereafter."
(b) CONFORMING AMENDMENT.-Section 9 of the Small Business
Act (15 U.S.C. 638) is amended in subsections (b)(4) and (e)(6),
by striking "pilot" each place it appears.
SEC. 3. INCREASE IN AUTHORIZED PHASE II AWARDS.
(a) IN GENERAL.-Section 9(p)(2)(B)(ix) of the Small Business
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended—
(1) by striking "$500,000" and inserting "$750,000"; and
(2) by inserting before the semicolon at the end the fol-
lowing: and shorter or longer periods of time to be approved
at the discretion of the awarding agency where appropriate
for a particular project".
(b) EFFECTIVE DATE.-The amendments made by subsection
(a) shall be effective beginning in fiscal year 2004.
H. R. 1860-2
SEC. 4. AGENCY OUTREACH.
Section 9(o) of the Small Business Act (15 U.S.C. 638(o)) is
amended-
(1) in paragraph (12), by striking "and" at the end;
(2) in paragraph (13), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
"(14) implement an outreach program to research institu-
tions and small business concerns for the purpose of enhancing
its STTR program, in conjunction with any such outreach done
for purposes of the SBIR program; and".
SEC. 5. POLICY DIRECTIVE MODIFICATIONS.
Section 9(p) of the Small Business Act (15 U.S.C. 638(p)) is
amended by adding at the end the following:
"(3) MODIFICATIONS.-Not later than 120 days after the
date of enactment of this paragraph, the Administrator shall
modify the policy directive issued pursuant to this subsection
to clarify that the rights provided for under paragraph (2)(B)(v)
apply to all Federal funding awards under this section,
including the first phase (as described in subsection (e)(6)(A)),
the second phase (as described in subsection (e)(6)(B)), and
the third phase (as described in subsection (e)(6)(C)).".
SEC. 6. STTR PROGRAM DATA COLLECTION.
(a) IN GENERAL.-Section 9(o) of the Small Business Act (15
U.S.C. 638(o)), as amended by this Act, is amended by adding
at the end the following:
((15) collect, and maintain in a common format in accord-
ance with subsection (v), such information from awardees as
is necessary to assess the STTR program, including information
necessary to maintain the database described in subsection
(k).".
(b) DATABASE.-Section 9(k) of the Small Business Act (15
U.S.C. 638(k)) is amended—
(1) in paragraph (1)-
(A) by inserting "or STTR" after "SBIR" each place
it appears;
(B) in subparagraph (C), by striking "and" at the end;
(C) in subparagraph (D), by striking the period at
the end and inserting "; and"; and
(D) by adding at the end the following:
"(E) with respect to assistance under the STTR pro-
gram only-
"(i) whether the small business concern or the
research institution initiated their collaboration on
each assisted STTR project;
"(ii) whether the small business concern or the
research institution originated any technology relating
to the assisted STTR project;
"(iii) the length of time it took to negotiate any
licensing agreement between the small business con-
cern and the research institution under each assisted
STTR project; and
"(iv) how the proceeds from commercialization,
marketing, or sale of technology resulting from each
assisted STTR project were allocated (by percentage)
H.R. 1860-3
between the small business concern and the research
institution."; and
(2) in paragraph (2)-
(A) by inserting "or an STTR program pursuant to
subsection (n)(1)" after "(f)(1)";
(B) by striking "solely for SBIR" and inserting "exclu-
sively for SBIR and STTR";
(C) in subparagraph (A)(iii), by inserting "and STTR"
after "SBIR"; and
(D) in subparagraph (D), by inserting "or STTR" after
"SBIR".
(c) SIMPLIFIED REPORTING REQUIREMENTS.-Section 9(v) of the
Small Business Act (15 U.S.C. 638(v)) is amended by inserting
"or STTR" after "SBIR" each place it appears.
(d) REPORTS TO CONGRESS.-Section 9(b)(7) of the Small Busi-
ness Act (15 U.S.C. 638(b)(7)) is amended by striking "and (o)(9),"
and inserting ", (o)(9), and (o)(15), the number of proposals received
from, and the number and total amount of awards to, HUBZone
small business concerns under each of the SBIR and STTR pro-
grams,".
SEC. 7. STTR PROGRAM-WIDE MODEL AGREEMENT FOR INTELLEC-
TUAL PROPERTY RIGHTS.
(a) DEVELOPMENT OF MODEL AGREEMENT.-Section 9 of the
Small Business Act (15 U.S.C. 638) is amended by adding at the
end the following:
"(w) STTR MODEL AGREEMENT FOR INTELLECTUAL PROPERTY
RIGHTS.-
"(1) IN GENERAL.-The Administrator shall promulgate
regulations establishing a single model agreement for use in
the STTR program that allocates between small business con-
cerns and research institutions intellectual property rights and
rights, if any, to carry out follow-on research, development,
or commercialization.
"(2) OPPORTUNITY FOR COMMENT.-In promulgating regula-
tions under paragraph (1), the Administrator shall provide
to affected agencies, small business concerns, research institu-
tions, and other interested parties the opportunity to submit
written comments."
(b) ADOPTION OF MODEL AGREEMENT BY FEDERAL AGENCIES.-
Section 9(o)(11) of the Small Business Act (15 U.S.C. 638(o)(11))
is amended by striking "develop a model agreement not later than
July 31, 1993, to be approved by the Administration," and inserting
"adopt the agreement developed by the Administrator under sub-
section (w) as the agency's model agreement".
SEC. 8. FAST PROGRAM ASSISTANCE TO WOMEN-OWNED AND
MINORITY-OWNED SMALL BUSINESS CONCERNS AND
CONCERNS LOCATED IN AREAS NOT PARTICIPATING IN
SBIR AND STTR.
(a) SELECTION CONSIDERATION.-Section 34(c)(2)(B) of the Small
Business Act (15 U.S.C. 657d(c)(2)(B)) is amended—
(1) in clause (iv), by striking "and" at the end;
(2) in clause (v), by striking the period at the end and
inserting "; and"; and
(3) by adding at the end the following new clause:
"(vi) whether the proposal addresses the needs
of small business concerns-
H.R. 1860-4
"(I) owned and controlled by women;
"(II) owned and controlled by minorities; and
"(III) located in areas that have historically
not participated in the SBIR and STTR programs."
(b) REGULATIONS.-Section 34(c)(4) of the Small Business Act
(15 U.S.C. 657d(c)(4)) is amended by adding at the end the following:
"The Administrator shall promulgate regulations establishing
standards for the consideration of proposals under paragraph (2),
including standards regarding each of the considerations identified
in paragraph (2)(B).".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
R
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
RESPONSE:
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
UNITED OFFICE PRESSENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
01 0CT 5 PR11:06
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDanied
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
SS/ RM NO.
494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
RESPONSE:
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
DFFICE OF THE THE PRESIDENT UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
01:0CT5PM11:08
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as.
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDamied
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
10/06/01 SAT 00:25 FAX
<
001
*** TX REPORT ***
TRANSMISSION OK
TX/RX NO
0343
CONNECTION TEL
66212
CONNECTION ID
ST. TIME
10/06 00:23
USAGE T
01'51
PGS. SENT
4
RESULT
OK
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
X
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
₹
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
10/06/01 SAT 00:27 FAX
001
*** TX REPORT ***
TRANSMISSION OK
TX/RX NO
0344
CONNECTION TEL
51005
CONNECTION ID
ST. TIME
10/06 00:25
USAGE T
01'50
PGS. SENT
4
RESULT
OK
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
X
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
>
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
10/06/01 SAT 00:32 FAX
1
001
*** TX REPORT ***
TRANSMISSION OK
TX/RX NO
0346
CONNECTION TEL
56958
CONNECTION ID
ST. TIME
10/06 00:30
USAGE T
01'50
PGS. SENT
4
RESULT
OK
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
10/06/01 SAT 00:30 FAX
1
001
*** TX REPORT ***
TRANSMISSION OK
TX/RX NO
0345
CONNECTION TEL
62710
CONNECTION ID
ST. TIME
10/06 00:28
USAGE T
01'50
PGS. SENT
4
RESULT
OK
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
01 UCI / PM5:13
ACTION
FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
comments
RESPONSE:
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
EXECUTIVE OFFICE OF THE PRESIDENT
STRUITYE UNITED OFFICE THE THE 3
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDamied m
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
001
10/08/2001 MON 09:19 FAX
Country
SS/ RM NO. 494299
'01 0CT 8 AM9:48
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
>
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
RESPONSE: No objection -cer
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
002
10/08/2001 MON 09:19 FAX
EXECUTIVE OFFICE OF THE PRESIDENT
STATE OFFICE ONVICE
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
5 PHILICS
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Techrology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA) No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their rescarch budgets for research performed by
small businesses generally.
003
10/08/2001 MON 09:19 FAX
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further devel op the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as 2. pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R. 1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
004
10/08/2001 MON 09:20 FAX
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you apprc ve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDICAL
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
'01 0CT 8 AM11:37
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
RESPONSE:
60
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
PRESENT E CHECK UNITED D
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
5,PMII:06
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as.
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDamied
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01,
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
ok - EAW
RESPONSE:
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
THE OFFICE THE ESIDENT SERVISE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
01 UCT 5 PR11:05
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No
comment
(Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as.
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
m
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
OCT-08-2001 13:33
OVP
2024560387 P.01/01
OFFICE OF THE VICE PRESIDENT
WASHINGTON
010CT8PM2:02
October 8, 2001
MEMORANDUM FOR HARRIET MIERS
STAFF SECRETARY
FROM:
JONATHAN BURKSP
DEPUTY STAFF SECRETARY TO THE VICE PRESIDENT
SUBJECT:
H.R. 1860, Small Business Technology Transfer
Program Reauthorization Act of 2001
The Office of the Vice President has reviewed the above-referenced
draft and has no comments.
TOTAL P.01
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
010CT8PM2:56
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
>
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
RESPONSE:
Cigalative Affer (Anword) -oh
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
OF THE THE PRESIDENT STATES UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
01.00T5PM11:05
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
m
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
SS/ RM NO. 494299
SB
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
N/C SUB 10.
RESPONSE:
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
THE PRESIDENT UNITED &
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
010CT5PR1105
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as-
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDICAL m
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
V1 UC I
9
AMB:
48
ACTION FYI
ACTION
FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
NC
RESPONSE:
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
EXECUTIVE OFFICE OF THE PRESIDENT
STATE THE STATE WTATE UNITED
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
010CT5PM11:05
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
(9)(q)
SS/ RM NO. 494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
'01 UC I PM6:22
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
RESPONSE:
New
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
UNITED FULL OFFICE THE RESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA) No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDamied M
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
H.R. 1860
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
WHITE HOU
To reauthorize the Small Business Technology Transfer Program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Small Business Technology
Transfer Program Reauthorization Act of 2001".
SEC. 2. EXTENSION OF PROGRAM AND EXPENDITURE AMOUNTS.
(a) IN GENERAL-Section 9(n)(1) of the Small Business Act
(15 U.S.C. 638(n)(1)) is amended to read as follows:
"(1) REQUIRED EXPENDITURE AMOUNTS.-
"(A) IN GENERAL.-With respect to each fiscal year
through fiscal year 2009, each Federal agency that has
an extramural budget for research, or research and develop-
ment, in excess of $1,000,000,000 for that fiscal year, shall
expend with small business concerns not less than the
percentage of that extramural budget specified in subpara-
graph (B), specifically in connection with STTR programs
that meet the requirements of this section and any policy
directives and regulations issued under this section.
"(B) EXPENDITURE AMOUNTS.-The percentage of the
extramural budget required to be expended by an agency
in accordance with subparagraph (A) shall be-
"(i) 0.15 percent for each fiscal year through fiscal
year 2003; and
"(ii) 0.3 percent for fiscal year 2004 and each fiscal
year thereafter.".
(b) CONFORMING AMENDMENT.-Section 9 of the Small Business
Act (15 U.S.C. 638) is amended in subsections (b)(4) and (e)(6),
by striking "pilot" each place it appears.
SEC. 3. INCREASE IN AUTHORIZED PHASE II AWARDS.
(a) IN GENERAL-Section 9(p)(2)(B)(ix) of the Small Business
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended—
(1) by striking "$500,000" and inserting "$750,000"; and
(2) by inserting before the semicolon at the end the fol-
lowing: and shorter or longer periods of time to be approved
at the discretion of the awarding agency where appropriate
for a particular project".
(b) EFFECTIVE DATE.-The amendments made by subsection
(a) shall be effective beginning in fiscal year 2004.
H.R. 1860-4
"(I) owned and controlled by women;
"(II) owned and controlled by minorities; and
"(III) located in areas that have historically
not participated in the SBIR and STTR programs."
(b) REGULATIONS.-Section 34(c)(4) of the Small Business Act
(15 U.S.C. 657d(c)(4)) is amended by adding at the end the following:
"The Administrator shall promulgate regulations establishing
standards for the consideration of proposals under paragraph (2),
including standards regarding each of the considerations identified
in paragraph (2)(B).".
Specker
Da. of the House Mostent of Representatives.
Visa Lane Prosident of the President United Stat Bynd of the and Senateuro tempore.
APPROVED
OCT 1 5 2001
San Be
01:0CT 10 PM12:49
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
10/15
Route Slip
To: Carol Cleveland
Take necessary action
X
Staff Secretary's Office
Approval or signature
Ground Floor/West Wing/WH
Comment
Prepare reply
Discuss with me
For your information
See remarks below
From: Dianne Wells, LRD
Date: 10/09/01
Remarks:
FOR YOUR RECORDS -- attached is the original SBA views letter
on:
Enrolled Bill H.R. 1860 - Small Business Technology
Transfer Program Reauthorization Actof 2001
SMALL
U.S. SMALL BUSINESS ADMINISTRATION
WASHINGTON, D.C. 20416
1953
ATTO
OFFICE OF THE ADMINISTRATOR
OCT - 4 2001
The Honorable Mitch Daniels
Director
Office of Management and Budget
Washington, DC 20503
Dear Mr. Daniels:
This is in response to your request for views of the U.S. Small Business
Administration (SBA) on the enrolled bill, H.R. 1860, the "Small Business Technology
Transfer Program Reauthorization Act of 2001."
The SBA supports the President signing this bill. The bill, among other things,
authorizes the Small Business Technology Transfer (STTR) Program through fiscal year
2009, increases the Phase II award level to $750,000 and the percentage set-aside to 0.30
percent in fiscal year 2004 and each year thereafter. We believe this bill will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development.
The goal of the STTR Program is to link small businesses with creative ideas at
universities, non-profit scientific and educational institutions, and Federal laboratories to
advance technological innovation in Federal research and development programs.
Through this collaboration, high quality research is made available in the American
economy. Since the Program's authorization in 1992, and the issuance of the first awards
in 1994, the Federal agencies have awarded more than $236 million to small businesses,
with the research partners receiving more than $33 million of those funds.
SBA recommends that the President sign this bill.
Sincerely, Bareto
Hector V. Barreto
Administrator
Federal Recycling Program
Printed on Recycled Paper
Clerk
494299
DFFICE OF THE THE PRESIDENT STATES UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
THE DIRECTOR
October 5, 2001
BILLIS HERE
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as-
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
MEDamied
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-
SS/ RM NO.
494299
WHITE HOUSE STAFFING MEMORANDUM
Date: 10-5-01
ACTION / CONCURRENCE / COMMENT DUE BY: 10-8-01, 2:00 PM
H.R. 1860, SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM
Subject: REAUTHORIZATION ACT OF 2001
ACTION FYI
ACTION FYI
VICE PRESIDENT
HUBBARD
CARD
IRASTORZA
HUGHES
JOHNSON
ROVE
LINDSEY
BOLTEN
SPELLINGS
HAGIN
MIERS
DANIELS
RICE
BLAKEMAN
CONNAUGHTON
CALIO
GERSON
FLEISCHER
CLERK
GONZALES
HAWKINS
REMARKS:
PLEASE SEND COMMENTS TO STAFF SECRETARY NO LATER THAN 2:00 PM MONDAY,
10-8-01. THANK YOU.
RESPONSE:
Harriet E. Miers
Assistant to the President
and Staff Secretary
Ext. 62702
DERO OF THE PRESIDENT STATE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
'01/UC) 5 PMI1:06
THE DIRECTOR
October 5, 2001
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Enrolled Bill H.R. 1860 - Small Business Technology Transfer Program
Reauthorization Act of 2001
Sponsor - Rep. Ehlers (R) Michigan and 3 cosponsors
Last Day for Action
October 15, 2001 - Monday
Purpose
(1) Extends the authority for the Small Business Technology Transfer (STTR) Program
by eight years, through fiscal year 2009; and (2) doubles the STTR program set-aside for major
Federal agency external research budgets from 0.15 percent to 0.30 percent.
Agency Recommendations
Office of Management and Budget
Approval
Small Business Administration (SBA)
Approval
National Science Foundation (NSF)
Approval
Department of Justice
No objection (Informally)
Office of Science and Technology Policy (OSTP)
No objection (Informally)
Department of Defense
Defers to OSTP (Informally)
Department of Energy
Defers to SBA (Informally)
Department of Health and Human Services (HHS)
Defers to SBA (Informally)
Department of Commerce
No comment (Informally)
National Aeronautics and Space Administration (NASA)
No comment (Informally)
Discussion
The STTR program requires Federal agencies with annual external research or research
and development budgets exceeding $1 billion to set aside 0.15 percent of those budgets for
research projects performed jointly by small businesses and research institutions such as
universities or Federally funded laboratories. Five agencies (the Departments of Defense,
Energy, and HHS, NSF, and NASA) are currently covered by the program. These agencies are
also covered by the larger Small Business Innovation Research (SBIR) program, under which
agencies are required to set aside 2.5 percent of their research budgets for research performed by
small businesses generally.
The STTR program is designed to promote collaboration between small firms and
research institutions. To receive an award under the program, a research institution and a small
firm must jointly submit a research proposal to an agency. Applicants whose proposals are
accepted proceed through up to three phases. In Phase I, participants are awarded one-year grants
of up to $100,000 to explore a concept's scientific, technical, and commercial potential.
Participants with apparently meritorious concepts are permitted to proceed to Phase II, in which
they receive a two-year grant of up to $500,000 to further develop the concept. In Phase III (for
which participants cannot use STTR funds), participants work on commercializing their concepts
and may also continue research and development.
The STTR program was established by law in 1992 as a pilot program, and was extended
in 1996 and 1997. The most recent extension expired on September 30, 2001.
Provisions of H.R. 1860
The enrolled bill would extend the authorization for the STTR program through
September 30, 2009, and would remove its statutory designation as a "pilot" program. H.R.1860
would also double the current 0.15 percent set-aside for the STTR program to 0.30 percent
beginning in FY 2004. (In testimony before the House and Senate Small Business Committees,
the Administration proposed that the STTR program be reauthorized for three years, with no
increase to the current 0.15 percent set-aside rate.) Also beginning in FY 2004, the amount of
Phase II grants would be increased from $500,000 to $750,000 and awarding agencies would be
given the discretion to shorten or lengthen the current two-year Phase II period where appropriate
for specific projects.
In addition, H.R. 1860 would require SBA to issue two new regulations. The first new
regulation would prescribe a standard agreement, which participating agencies would be required
to adopt, clarifying the property rights of small businesses and research institutions concerning
intellectual property developed with the assistance of STTR grants. Concurrently, SBA would be
required to modify existing policy directives to clarify that a small business retains rights to data
it generates in STTR-funded projects for at least four years after that business completes
participation in a phase of the award. The second new regulation would establish standards for
evaluations for grants under the Federal and State Technology (FAST) Partnership program,
including consideration of whether funding proposals address the needs of small businesses
owned by women or minorities or areas that have historically not participated in the STTR and
the SBIR programs. (The FAST Program provides grants to support State efforts to recruit and
assist participants in the SBIR program.)
The enrolled bill would also require SBA to collect and maintain information necessary to
assess the STTR Program. In addition, the enrolled bill would require SBA to maintain an
electronic public database of information about the STTR Program similar to the database
maintained for the SBIR Program. SBA would have to include in the database, with respect to
any individual project receiving STTR assistance, information on: (1) whether the small
-2-
business or the research institution initiated the collaboration; (2) whether the small business or
the research institution originated the technology; (3) the length of time it took to negotiate a
licensing agreement between the small business and the research institution; and (4) how the
proceeds from the commercialization, marketing, or sale of technology were allocated between
the small business and the research institution.
Finally, the enrolled bill would require agencies to engage in outreach to research
institutions and small businesses to enhance their STTR programs in conjunction with any
similar outreach done for the SBIR Program.
Conclusion and Recommendations
SBA recommends approval in its views letter, stating that H.R. 1860 "will enable us to
continue our efforts to strengthen the competitiveness of small businesses to participate in
Federal research and development." SBA notes that, since the STTR program's inception in
1992, "Federal agencies have awarded more than $236 million [in grants under the STTR
program] to small businesses."
We join SBA and NSF in recommending that you approve H.R. 1860, which passed the
House by voice vote and the Senate by unanimous consent.
M MEDanied
Mitchell E. Daniels, Jr.
Director
Enclosures
-3-