15 U.S.C. § 3722 — Regional innovation program

Page 2068 TITLE 15—COMMERCE AND TRADE § 3722 mation about the program established under this section and to conduct outreach to poten- tial borrowers, as appropriate. (q) Minimizing risk The Secretary shall promulgate regulations and policies to carry out this section in accord- ance with Office of Management and Budget Cir- cular No. A–129, entitled ‘‘Policies for Federal Credit Programs and Non-Tax Receivables’’, as in effect on January 4, 2011. (r) Sense of Congress It is the sense of Congress that no loan guar- antee shall be made under this section unless the borrower agrees to use a federally-approved electronic employment eligibility verification system to verify the employment eligibility of— (1) all persons hired during the contract term by the borrower to perform employment duties within the United States; and (2) all persons assigned by the borrower to perform work within the United States on the project. (s) Definitions In this section: (1) Cost The term ‘‘cost’’ has the meaning given such term under section 661a of title 2. (2) Innovative process The term ‘‘innovative process’’ means a process that is significantly improved as com- pared to the process in general use in the com- mercial marketplace in the United States at the time the loan guarantee is issued. (3) Innovative technology The term ‘‘innovative technology’’ means a technology that is significantly improved as compared to the technology in general use in the commercial marketplace in the United States at the time the loan guarantee is issued. (4) Loan guarantee The term ‘‘loan guarantee’’ has the meaning given such term in section 661a of title 2. The term includes a loan guarantee commitment (as defined in section 661a of title 2). (5) Obligation The term ‘‘obligation’’ means the loan or other debt obligation that is guaranteed under this section. (6) Program The term ‘‘program’’ means the loan guar- antee program established in subsection (a). (t) Authorization of appropriations There are authorized to be appropriated $20,000,000 for each of fiscal years 2011 through 2013 to provide the cost of loan guarantees under this section. (Pub. L. 96–480, § 26, as added Pub. L. 111–358, title VI, § 602, Jan. 4, 2011, 124 Stat. 4026; amend- ed Pub. L. 117–167, div. B, title II, § 10246(b)(2), Aug. 9, 2022, 136 Stat. 1492.) Editorial Notes AMENDMENTS 2022—Subsec. (m)(2), (3). Pub. L. 117–167 redesignated par. (3) as (2), struck out ‘‘and the Comptroller Gen- eral’s review under paragraph (2)’’ before ‘‘shall be pro- vided’’, and struck out former par. (2). Prior to amend- ment, text of par. (2) read as follows: ‘‘The Comptroller General of the United States shall conduct a biennial review of the Secretary’s execution of the program under this section.’’ Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Science and Technology of House of Representatives changed to Committee on Science, Space, and Technology of House of Representatives by House Resolution No. 5, One Hundred Twelfth Congress, Jan. 5, 2011. § 3722. Regional innovation program (a) Definitions In this section: (1) Eligible recipient The term ‘‘eligible recipient’’ means— (A) a State; (B) an Indian tribe; (C) a city or other political subdivision of a State; (D) an entity that— (i) is a nonprofit organization, an insti- tution of higher education, a public-pri- vate partnership, a science or research park, a Federal laboratory, a venture de- velopment organization, or an economic development organization or similar enti- ty that is focused primarily on improving science, technology, innovation, or entre- preneurship; and (ii) has an application submitted under subsection (c)(4) that is supported by a State or a political subdivision of a State; or (E) a consortium of any of the entities de- scribed in subparagraphs (A) through (D). (2) Regional innovation initiative The term ‘‘regional innovation initiative’’ means a geographically-bounded public or nonprofit activity or program to address issues in the local innovation systems in order to— (A) increase the success of innovation- driven industry; (B) strengthen the competitiveness of in- dustry through new product innovation and new technology adoption; (C) improve the pace of market readiness and overall commercialization of innovative research; (D) enhance the overall innovation capac- ity and long-term resilience of the region; (E) leverage the region’s unique competi- tive strengths to stimulate innovation; and (F) increase the number of full-time equiv- alent employment opportunities within in- novation-based business ventures in the geo- graphic region. (3) State The term ‘‘State’’ means one of the several States of the United States, the District of Co- lumbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Page 2069 TITLE 15—COMMERCE AND TRADE § 3722 Northern Mariana Islands, or any other terri- tory or possession of the United States. (4) Venture development organization The term ‘‘venture development organiza- tion’’ means a State or nonprofit organization that contributes to regional or sector-based economic prosperity by providing services for the purposes of accelerating the commer- cialization of research. (b) Establishment The Secretary shall establish a regional inno- vation program to encourage and support the development of regional innovation strategies designed to increase innovation-driven economic opportunity within their respective regions. (c) Regional innovation grants (1) Authorization of grants As part of the program established pursuant to subsection (b), the Secretary may award grants, on a competitive basis, to eligible re- cipients for activities designed to develop and support a regional innovation initiative. (2) Permissible activities A grant awarded under this subsection shall be used for multiple activities determined ap- propriate by the Secretary, including— (A) planning, technical assistance, and communication among participants of a re- gional innovation initiative to improve the connectedness and strategic orientation of the regional innovation initiative; (B) attracting additional participants to a regional innovation initiative; (C) increasing the availability and invest- ment of private and philanthropic financing that supports innovation-based business ven- tures; and (D) facilitating commercialization of prod- ucts, processes, and services, including through demonstration, deployment, tech- nology transfer, and entrepreneurial activi- ties. (3) Restricted activities Grants awarded under this subsection may not be used to pay for— (A) costs related to the recruitment, in- ducement, or associated financial or tan- gible incentives that might be offered to re- locate an existing business from a geo- graphic area to another geographic area; or (B) costs associated with offsetting reve- nues forgone by 1 or more taxing authorities through tax incentives, tax increment fi- nancing, special improvement districts, tax abatements for private development within designated zones or geographic areas, or other reduction in revenues resulting from tax credits affecting the geographic region of the eligible recipients. (4) Applications (A) In general An eligible recipient shall submit an appli- cation to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may re- quire. (B) Components Each application submitted under subpara- graph (A) shall— (i) describe the regional innovation ini- tiative; (ii) indicate whether the regional inno- vation initiative is supported by the pri- vate sector, State and local governments, and other relevant stakeholders; (iii) identify what activities the regional innovation initiative will undertake; (iv) describe the expected outcomes of the regional innovation initiative and the metrics the eligible recipient will use to assess progress toward those outcomes; (v) indicate whether the participants in the regional innovation initiative have ac- cess to, or contribute to, a well-trained workforce and other innovation assets that are critical to the successful out- comes specified in the application; (vi) indicate whether the participants in the regional innovation initiative are ca- pable of attracting additional funds from non-Federal sources; and (vii) if appropriate for the activities pro- posed in the application, analyze the like- lihood that the participants in the re- gional innovation initiative will be able to sustain activities after grant funds re- ceived under this subsection have been ex- pended. (C) Feedback The Secretary shall provide feedback to program applicants that are not awarded grants to help them improve future applica- tions. (D) Special considerations The Secretary shall give special consider- ation to— (i) applications proposing to include workforce or training related activities in their regional innovation initiative from eligible recipients who agree to collabo- rate with local workforce investment area boards; and (ii) applications from regions that con- tain communities negatively impacted by trade. (5) Cost share The Secretary may not provide more than 50 percent of the total cost of any activity fund- ed under this subsection. (6) Outreach to rural communities The Secretary shall conduct outreach to public and private sector entities in rural communities to encourage those entities to participate in regional innovation initiatives under this subsection. (7) Geographic distribution In conducting a competitive process, the Secretary shall avoid undue geographic con- centration among any one category of States based on their predominant rural or urban character as indicated by population density. (8) Funding The Secretary may accept funds from other Federal agencies to support grants and activi- ties under this subsection. Page 2070 TITLE 15—COMMERCE AND TRADE § 3722a (d) Regional innovation research and informa- tion program (1) In general As part of the program established pursuant to subsection (b), the Secretary shall establish a regional innovation research and informa- tion program— (A) to gather, analyze, and disseminate in- formation on best practices for regional in- novation initiatives, including information relating to how innovation, productivity, and economic development can be maxi- mized through such strategies; (B) to provide technical assistance, includ- ing through the development of technical as- sistance guides, for the development and im- plementation of regional innovation initia- tives; (C) to support the development of relevant metrics and measurement standards to evaluate regional innovation initiatives, in- cluding the extent to which such strategies stimulate innovation, productivity, and eco- nomic development; and (D) to collect and make available data on regional innovation initiatives in the United States, including data on— (i) the size, specialization, and competi- tiveness of regional innovation initiatives; (ii) the regional domestic product con- tribution, total jobs and earnings by key occupations, establishment size, nature of specialization, patents, Federal research and development spending, and other rel- evant information for regional innovation initiatives; and (iii) supply chain product and service flows within and between regional innova- tion initiatives. (2) Research grants The Secretary may award research grants on a competitive basis to support and further the goals of the program established under this section. (3) Dissemination of information Data and analysis compiled by the Secretary under the program established in this sub- section shall be made available to other Fed- eral agencies, State and local governments, and nonprofit and for-profit entities. (4) Regional innovation grant program The Secretary shall incorporate data and analysis relating to any grant awarded under subsection (c) into the program established under this subsection. (e) Interagency coordination (1) In general To the maximum extent practicable, the Secretary shall ensure that the activities car- ried out under this section are coordinated with, and do not duplicate the efforts of, other programs at the Department of Commerce or at other Federal agencies. (2) Collaboration (A) In general The Secretary shall explore and pursue collaboration with other Federal agencies, including through multi-agency funding op- portunities, on regional innovation strate- gies. (B) Small businesses The Secretary shall ensure that such col- laboration with Federal agencies prioritizes the needs and challenges of small businesses. (f) Evaluation (1) In general Not later than 5 years after Congress first appropriates funds to carry out this section, the Secretary shall competitively award a contract with an independent entity to con- duct an evaluation of programs established under this section. (2) Requirements The evaluation conducted under paragraph (1) shall include— (A) an assessment of whether the program is achieving its goals; (B) the program’s efficacy in providing awards to geographically diverse entities; (C) any recommendations for how the pro- gram may be improved; and (D) a recommendation as to whether the program should be continued or terminated. (g) Reporting requirement Not later than 5 years after the first grant is awarded under subsection (c), and every 5 years thereafter until 5 years after the last grant re- cipient completes the regional innovation ini- tiative for which such grant was awarded, the Secretary shall submit a summary report to Congress that describes the outcome of each re- gional innovation initiative that was completed during the previous 5 years. (h) Funding From amounts appropriated by Congress to the Secretary, the Secretary may use up to $50,000,000 in each of the fiscal years 2020 through 2024 to carry out this section. (Pub. L. 96–480, § 27, as added Pub. L. 111–358, title VI, § 603, Jan. 4, 2011, 124 Stat. 4030; amend- ed Pub. L. 113–235, div. B, title VII, § 705, Dec. 16, 2014, 128 Stat. 2230; Pub. L. 116–92, div. A, title XVII, § 1742, Dec. 20, 2019, 133 Stat. 1837.) Editorial Notes AMENDMENTS 2019—Pub. L. 116–92 amended section generally. Prior to amendment, section related to regional innovation program, consisting of subsecs. (a) to (g). 2014—Pub. L. 113–235 amended section generally. Prior to amendment, text related to regional innovation pro- gram and consisted of subsecs. (a) to (i), including pro- visions relating to establishment of program, cluster grants, science and research park development grants, loan guarantees for science park infrastructure, re- gional innovation research and information program, interagency coordination, evaluation of program, defi- nitions, and authorization of appropriations. § 3722a. Regional Technology and Innovation Hub Program (a) Definitions In this section: (1) Appropriate committees of Congress The term ‘‘appropriate committees of Con- gress’’ means—