Directs the Secretary to make competitive, matching awards to: (1) a nonprofit entity that manages or provides technical assistance to a degree-granting institution's affiliated incubator (or to the institution that manages in the absence of such an entity), for helping acquire or renovate space for incubators, and for developing curricula, providing services, or providing programming for entrepreneurs housed in an incubator; and (2) a degree-granting institution or a nonprofit local government or community development organization, for feasibility studies to determine the need for or siting of incubators. Requires the Secretary to reserve certain amounts for research regarding best practices for incubator programs, including the development of a benchmarking system based on uniform measures, and for dissemination of information regarding such practices. Authorizes contracts for such purposes with organizations with expertise in business incubation practices.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6020 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 6020
To support business incubation in academic settings, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 28, 2006
Mr. Tierney (for himself, Mr. Shimkus, Mr. Case, Mr. Filner, Ms.
McCollum of Minnesota, Mr. Hinojosa, Mr. Owens, Mr. McGovern, Mr.
Pomeroy, Mr. Bishop of New York, Mr. Meehan, Ms. Baldwin, Mr. Davis of
Illinois, Mr. Frank of Massachusetts, Mr. Neal of Massachusetts, Mr.
Ryan of Ohio, Mr. Kildee, Mr. Kind, Mr. Capuano, Mr. Grijalva, Mr.
Markey, Mr. Scott of Virginia, Mr. Olver, Mr. Allen, Mr. Andrews, Mr.
Delahunt, Mrs. Jones of Ohio, Mr. Higgins, Mr. McIntyre, Ms. Slaughter,
Mrs. Maloney, Mr. Kennedy of Rhode Island, Mr. Kucinich, Mr. Conyers,
Mr. Simmons, Ms. Jackson-Lee of Texas, Ms. Zoe Lofgren of California,
Mr. Lynch, Mr. Payne, Mr. George Miller of California, Mr. Wynn, Mr.
Honda, Mrs. McCarthy, Mr. Michaud, Ms. Hooley, Mr. McCotter, Mr.
Ruppersberger, Mr. Brown of Ohio, Mr. Cleaver, Mr. Fortenberry, Ms.
Matsui, Mr. Holt, Mr. Butterfield, Mr. Udall of New Mexico, Mr. McHugh,
Mr. Lipinski, Ms. Millender-McDonald, Ms. Moore of Wisconsin, Mr. Ford,
Mr. Miller of North Carolina, Mr. Van Hollen, Mr. Gutierrez, Mr.
Carnahan, Ms. Eshoo, Ms. Schakowsky, and Mr. Levin) introduced the
following bill; which was referred to the Committee on Education and
the Workforce
_______________________________________________________________________
A BILL
To support business incubation in academic settings, 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 AND FINDINGS.
(a) Short Title.--This Act may be cited as the ``Linking Educators
and Developing Entrepreneurs for Reaching Success (LEADERS) Act''.
(b) Findings.--Congress makes the following findings:
(1) Business incubators housed in academic settings provide
unique educational opportunities for students, provide
entrepreneurs with enhanced access to a skilled workforce, and
bring a wealth of resources to business, academia, and
communities.
(2) Academic affiliated incubators bridge the missions of
academic institutions by bringing together education, economic
development, and technology commercialization efforts.
(3) Studies have shown that incubator tenant companies have
an average success rate of 87 percent, and 90 percent for
technology-based incubator tenant companies. These success
rates are dramatically higher than the success rates for
companies in the general economy.
(4) Incubator companies are also more likely to remain in
the same communities as they grow and to provide high paying
jobs and benefits to their employees.
(5) Business incubators help academic institutions
contribute to local goals of sustaining economic development in
their surrounding communities.
(6) Education in entrepreneurship and other business
formation skills is essential to business success and
sustainable economic development.
SEC. 2. PURPOSE.
The purpose of this Act is to encourage entrepreneurship by
increasing the role for academia in entrepreneurship by providing space
and expertise in an academic setting to house and support new and
emerging small businesses.
SEC. 3. DEFINITIONS.
In this Act:
(1) Degree-granting institution.--The term ``degree-
granting institution'' means an institution of higher
education, as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001), that awards an associate or
baccalaureate degree.
(2) Incubator.--The term ``incubator'' means an entity
affiliated with or housed in a degree-granting institution that
provides space and coordinated and specialized services to
entrepreneurial businesses which meet selected criteria during
the businesses' startup phase, including providing services
such as shared office space and services, access to equipment,
access to telecommunications and technology services, flexible
leases, specialized management assistance, access to financing,
and other coordinated business or technical support services.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Education.
SEC. 4. PROGRAM AUTHORIZED.
(a) In General.--The Secretary is authorized to support the
establishment and development of incubators.
(b) Allocation of Funds.--From the amount appropriated under
section 9, the Secretary--
(1) shall use 80 percent of the amount to--
(A) make awards, on a competitive basis, in amounts
of $500,000 to $750,000, to help acquire or renovate
space for incubators; and
(B) make awards, on a competitive basis, in amounts
of $50,000 to $150,000, for developing curricula,
providing services (including preparing corporate
charters, partnership agreements, and basic contracts,
assistance with patents, trademarks, and copyrights,
and technology acquisition services), or providing
programming for entrepreneurs housed in an incubator;
(2) shall use 10 percent of the amount to make awards, on a
competitive basis, in amounts of $50,000 to $150,000, for
feasibility studies for determining the need for or siting of
incubators; and
(3) shall use 10 percent for research regarding best
practices for incubator programs, including the development of
a benchmarking system based on uniform measures, and for
dissemination of information regarding such practices.
(c) Contracts.--The Secretary is authorized to contract with
organizations with expertise in business incubation practices for the
purposes of carrying out subsection (b)(3).
(d) Recipients.--The Secretary shall make an award--
(1) described in subsection (b)(1) to a nonprofit entity
that has a strong affiliation with a degree-granting
institution and manages or provides technical assistance to the
degree-granting institution's affiliated incubator, or if no
nonprofit entity manages or provides technical assistance to
the incubator, to the degree-granting institution managing the
incubator; and
(2) described in subsection (b)(2) to a degree-granting
institution, or a nonprofit municipality, city, township, or
community development organization.
SEC. 5. USES OF FUNDS.
Funds awarded under section 4(b)(1)(B) may be used for--
(1) curriculum, training, or technical assistance developed
by academic faculty with participation from entrepreneurship
experts and local government leaders;
(2) programming that contributes to a coordinated set of
business assistance tools, such as developing management teams,
providing workforce development, forming strategic alliances,
developing capital formation networks, and developing
customized plans to help entrepreneurs meet the challenges of
doing business in their specific communities; and
(3) hiring staff to coordinate the activities described in
paragraph (1) or (2) or for curriculum development.
SEC. 6. APPLICATIONS.
(a) In General.--Each entity desiring assistance under this Act
shall submit an application to the Secretary at such time, in such
manner, and accompanied by such information as the Secretary may
require.
(b) Contents.--Each application shall contain an assurance that the
activities to be assisted--
(1) have the support of the municipality, city, or township
in which the incubator is housed or proposed to be housed; and
(2) are consistent with the local economic development plan
or strategic master plan.
(c) Priority.--The Secretary shall give priority to funding
applications under this Act that provide strong educational
opportunities to students in entrepreneurship, and that require
significant collaboration between businesses, academia, and local
government and economic development leaders.
(d) Consideration.--
(1) In general.--In addition to applications from other
appropriate sources, the Secretary may give consideration to
funding applications under this Act that support--
(A) the building of new incubators;
(B) incubators located in economically distressed
areas;
(C) incubators with successful graduation rates for
tenant companies;
(D) incubators that have shown demonstrable
economic benefits in their surrounding communities;
(E) incubators that work with faculty entrepreneurs
or university-based research; or
(F) incubators located in rural, inner-city areas,
or Indian reservations or pueblos where the presence of
an incubator may enhance and diversify the area's
economy through expanded technology commercialization.
(2) Definition of consideration.--In this subsection, the
term ``consideration'' does not mean priority.
SEC. 7. MATCHING FUNDS.
Each entity receiving Federal assistance under section 4(b)(1)
shall contribute matching funds, in an amount equal to the amount of
Federal assistance received under this Act, toward the costs of the
activities assisted under this Act. The non-Federal share required
under this section may be provided in the form of in-kind
contributions.
SEC. 8. REPORT.
The Secretary, at the end of the third year for which assistance is
provided under this Act, shall prepare and submit to Congress a report
that--
(1) describes the most effective or innovative additions to
curricula developed under this Act;
(2) contains a comparison of small business survival rates
for small businesses that started up in incubators versus small
businesses that did not so start;
(3) describes factors leading to any success of incubator
businesses;
(4) describes the best role for degree-granting
institutions in business incubation; and
(5) contains a comparison of academic-affiliated incubators
of specific missions and ages supported under this Act with
incubators with similar missions and ages that are not
supported under this Act.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this Act
$20,000,000 for each of the three fiscal years beginning after the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on 21st Century Competitiveness.
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