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Full Text of this Amendment

SA 290. Mrs. HUTCHISON submitted an amendment intended to be proposed by her to the bill S. 493, to reauthorize and improve the SBIR and STTR programs, and for other purposes; which was ordered to lie on the table; as follows.


On page 4, line 9, strike "2019" and insert "2014".
On page 4, line 17, strike "2019" and insert "2014".
On page 5, strike line 18 and all that follows through page 9, line 9.
On page 13, strike line 12 and all that follows through page 27, line 11, and insert the following:
SEC. 108. ENSURING THAT INNOVATIVE SMALL BUSINESSES WITH SUBSTANTIAL INVESTMENT FROM VENTURE CAPITAL OPERATING COMPANIES ARE ABLE TO PARTICIPATE IN THE SBIR AND STTR PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
"(cc) Venture Capital Operating Companies.--For purposes of the SBIR and STTR programs the following shall apply:
"(1) A business concern that has more than 500 employees shall not qualify as a small business concern.
"(2) In determining whether a business concern is independently owned and operated under section 3(a)(1) or meets the small business size standards established under section 3(a)(2), the Administrator shall not consider a business concern to be affiliated with a venture capital operating company (or with any other business that the venture capital operating company has financed) if--
"(A) the venture capital operating company does not own 50 percent or more of the business concern; and
"(B) employees of the venture capital operating company do not constitute a majority of the board of directors of the business concern.
"(3) A business concern shall be deemed to be independently owned and operated if--
"(A) it is owned in majority part by one or more natural persons or venture capital operating companies;
"(B) there is no single venture capital operating company that owns 50 percent or more of the business concern; and
"(C) there is no single venture capital operating company the employees of which constitute a majority of the board of directors of the business concern.
"(4) If a venture capital operating company controlled by a business with more than 500 employees (in this paragraph referred to as a `VCOC under large business control') has an ownership interest in a business concern that is owned in majority part by venture capital operating companies, the business concern is eligible to receive an award under the SBIR or STTR program only if--
"(A) not more than two VCOCs under large business control have an ownership interest in the business concern; and
"(B) the VCOCs under large business control do not collectively own more than 20 percent of the business concern.
"(5) The term `venture capital operating company' means a business concern--
"(A) that--
"(i) is a venture capital operating company, as that term is defined in regulations promulgated by the Secretary of Labor; or
"(ii) is an entity that--
"(I) is registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.); or
"(II) is an investment company, as defined in section 3(a)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a-3), that is not registered under such Act because of an exemption under paragraph (1) or (7) of section 3(c) of such Act; and
"(B) that is organized or incorporated and domiciled in the United States, or controlled by a business concern that is incorporated and domiciled in the United States.".


(As printed in the Congressional Record for the Senate on Apr 8, 2011.)