Small Business Development Act of 1980

Small Business Development Act of 1980 - Title I: Small Business Innovation - Amends the Small Business Act to require the head of each Federal agency which obligates over $100,000,000 for research and development in a fiscal year to: (1) expend at least one percent of the amount spent on research and development during the next year for a small business innovation program; (2) solicit research and development proposals from small businesses during the next year; and (3) promote the use of small businesses to conduct research and development.

Requires the head of each Federal agency to increase the amount of funds obligated for the conduct of research and development by small businesses by one percent each year until the amount obligated to small businesses in a fiscal year equals at least ten percent of the total amount obligated by such agency for research and development.

States that it is an objective of this Act to amend existing patent procedures in order to promote the marketing of inventions developed under federally supported research and development projects by nonprofit organizations and small business firms.

Permits any such organization or firm to elect, within a reasonable amount of time, to retain title to such inventions. Permits Federal agencies which have supported such projects to retain title to inventions through their funding agreements in specified circumstances, including when necessary to conduct foreign intelligence or counterintelligence activities.

Requires review of agency determinations that such circumstances exist by the Comptroller General and the Chief Counsel for Advocacy of the Small Business Administration. Directs the Comptroller General to report to Congress on the implementation of this Act by Federal agencies.

Enumerates provisions which must be included in funding agreements between a Federal agency and a small business firm or nonprofit organization, including provisions: (1) to insure the rights of the Federal Government under this Act; (2) to provide that the agency shall have a nonexclusive, nontransferable, irrevocable and paid-up license to use the invention; (3) to prohibit a nonprofit organization from assigning rights to the invention without the approval of the Federal agency; (4) to prohibit such an organization, other than small business firms, from granting exclusive rights from the earlier of five years from the first commercial use of the invention or eight years from the date of invention; and (5) to require such organizations to use their royalties and earnings to support scientific research or education. Provides that the first commercial use with respect to a product of the invention shall not end the exclusive period to different subsequent products covered by the invention.

Requires the head of a Federal agency to approve provisions of a funding agreement which require the licensing to third parties of inventions owned by the contractor. Sets forth terms and conditions under which such approval may be granted.

Authorizes a Federal agency to transfer or assign its rights, acquired from an agency employee as coinventor, to an inventor electing to acquire title to an invention.

Empowers any Federal agency to require inventors or their assignees to grant licenses in order to: (1) achieve practical applications of the invention in its field of uses; (2) alleviate health or safety needs; (3) meet requirements for public use specified by Federal regulations; or (4) achieve participation by United States industry in the manufacturing of an invention.

Entitles the government to 15 percent of all net income in excess of $70,000 gross income received by a contractor after a patent application is filed on a subject invention. Provides that if a contractor receives a gross income of $1,000,000, the government shall be entitled to a share of the excess of $1,000,000 that shall be negotiated but not to exceed five percent of such excess. Limits the government share of any excesses to its contributions under the funding agreement. Requires the Director of the Office of Federal Procurement Policy to revise the government entitlements in light of changes to the Consumer Price Index or other indices at least every three years. Declares such government entitlements applicable to subject inventions upon which United States patents are granted and in effect.

Restricts the assignment and licensing of rights by patent holders to foreign-owned or controlled firms unless such persons agree that any products embodying the subject invention or produced through the use of the subject invention will be manufactured substantially in the United States where commercially feasible.

Authorizes Federal agencies to withhold information on inventions from public disclosure.

Specifies the authority of Federal agencies with respect to obtaining patents, granting licenses, and transferring custody of patents.

Authorizes the Administrator of General Services to promulgate regulations specifying the terms upon which any federally-owned invention may be licensed.

Sets forth the procedure whereby Federal agencies may grant exclusive or partially exclusive licenses in any invention covered by a federally-owned domestic patent or patent application.

Prohibits licensing which lessens competition. Directs that business firms be given preference in exclusive or partially exclusive licensing.

Enumerates provisions which must be contained in any grant of a license by a Federal agency.

Declares that this Act shall take precedence over any other Act in the disposition of inventions.

Title II: Depreciation Acceleration; Repeal of Used Property Limitation in Investment Tax Credit; Corporate Income Tax Rate Reductions - Amends the Internal Revenue Code to revise the method for determining useful lives of business assets for purposes of computing allowable depreciation deductions. Replaces the asset depreciation range (ADR) method with a schedule of capital cost recovery periods for three classes of business property.

Establishes capital cost recovery periods for the following classes of business property: (1) buildings and their structural components, ten years; (2) tangible property, five years; and (3) automobiles, taxis, and light-duty trucks (up to $100,000), three years. Allows a ten percent investment tax credit for buildings and tangible property, and a six percent credit for automobiles, taxis, and light duty trucks. Requires the recapture of depreciation amounts and investment tax credit amounts applicable to assets which are sold or otherwise disposed of prior to the expiration of the capital cost recovery period. Permits a taxpayer to deduct less than the full allowance for capital cost recovery in any taxable year. Permits a carryover to succeeding taxable years of any unused depreciation amounts.

Disqualifies capital cost recovery property from the allowance for first year depreciation.

Treats amounts claimed as the capital cost recovery of noncorporate lessors as an item of tax preference for purposes of the minimum tax.

Adopts as an accounting practice the "half year convention" under which investments eligible for capital cost recovery treatment or the investment tax credit which are made at any time during the taxable year are deemed to be made in the middle of such year.

Repeals the $100,000 limitation on the amount of used property which is eligible for an investment tax credit.

Reduces the tax rates applicable to corporate income.

Repeal the carryover basis provisions enacted by the Tax Reform Act of 1976 which provide that beneficiaries receiving property from a decedent's estate will retain the decedent's basis in the property. Restores prior law which "stepped up" or "stepped down" the property"s basis to its market value at the time of death without imposing tax consequences on the appreciation or depreciation the property underwent while held by the decedent.

Title III: Tax Incentives for Small Business Capital Formation - Provides for the nonrecognition of gain on the sale or exchange of an equity interest in a small business which is reinvested in another small business within two years. Defines a "small business" as any business entity in which the aggregate equity interests do not exceed $25,000,000.

Allows a tax credit for proceeds received from small business debentures which have a fixed maturity and grant no conversion or voting rights. Limits the amount of such credit to $5,000 ($10,000 in the case of a joint return). Disallows such credit if the issuing small business has $1,000,000 of such debentures outstanding or has a class of securities subject to regulation of the Securities and Exchange Commission. Treats amounts paid on such debentures which represent a share of the issuer's earnings as long-term capital gain. Treats losses on such debentures as an ordinary loss. Requires distributions on such debentures, which represent either interest or a share of earnings, to be treated as interest.

Title IV: Small Business Equal Access to Justice - Amends title II of the Small Business Act (Study of Small Business) to direct the Office of Advocacy within the Small Business Administration to assist the Attorney General, Federal agencies, and the Chairman of the Administrative Conference of the United States to facilitate relief afforded to small businesses under such Act.

Requires the Chief Counsel for Advocacy to submit biennial reports to the President and Congress on awards made to small businesses under such Act.

Excludes from the definition of "party" for purposes of this title: (1) an individual whose net worth exceeds $1,000,000; and (2) any partnership, corporation, association, organization, or sole owner of an unincorporated business whose net worth exceeds $5,000,000, but includes an agricultural cooperative, as defined in the Agricultural Marketing Act, regardless of its net worth.

Entitles a prevailing party (other than the United States) to be awarded fees and other expenses, including attorney fees, which were incurred by such party in: (1) an administrative adjudication (excluding ratemaking and license application hearings, but including such actions as suspension or modification of a license); or (2) in any civil action, other than a tort, brought by or against the United States, unless the agency conducting such adjudication, or the court having jurisdiction of such action, finds that the position of the agency or the United States was substantially justified or that special circumstances make an award unjust.

Allows the agency or the court to reduce any such award to the extent that the prevailing party unduly and unreasonably protracted the final resolution of the matter in controversy.

Stipulates that such awards in administrative adjudication shall be paid by the particular agency over which the party prevails, but prohibits authorization of appropriations to such agency for the specific purpose of such payments.

Authorizes a party dissatisfied with such award in an administrative adjudication to petition for leave to appeal the decision in an appropriate Federal court.

Authorizes a court to award reasonable attorney fees to the prevailing party in any civil action brought by or against the United States or any agency, including the Post Office, or official of the United States acting in an official capacity, where the court may award such fees in such suits involving private parties (thus applying to Government litigation the common law and statutory exceptions to the "American rule" which requires parties to be responsible for their own attorney fees).

Directs the Administrative Conference and the Administrative Office of the United States Courts to report annually on the amount of fees and expenses awarded during the preceding fiscal year in such agency adjudications and civil actions.

Makes this title applicable to any civil action pending on, or commencing after, the date of enactment, except for civil tax actions, which shall be subject to this title six months after enactment.

Directs the Office of the Chairman of the Administrative Conference and Director of the Administrative Office of the United States Courts to provide to the Small Business Office of Advocacy the information required to be collected in this title.

Title V: Small Business Regulatory Flexibility - Amends the Small Business Act to require each Federal agency to publish semiannually an agenda of those rules which may be proposed during the upcoming six-month period affecting a substantial number of small businesses and small organizations. Permits Federal agencies to modify the definition of "small business", if appropriate, after notice and opportunity for hearing. Defines "small organizations" to include unincorporated businesses, sheltered workshops enterprises which are not dominant in their fields, and such other groups and enterprises as each Federal agency shall establish by rule, not in conflict with the definition of "small business."

Requires each published agenda to be transmitted to the office of Advocacy of the Small Business Administration for comments. Directs each Federal agency to endeavor to provide notice of each agenda to affected small enterprises by means other than publication in the Federal Register.

Directs each Federal agency to publish a written analysis prior to the issuance of any proposed rule affecting a substantial number of small businesses and organizations which considers: (1) the effect of such rule on small enterprises and competition; (2) whether an exemption could be provided such small enterprises; (3) whether lesser compliance standards could be adopted for small enterprises; and (4) the expected nature of reporting recordkeeping requirements necessitated by such rule.

Requires each Federal agency to issue a rule containing an exemption or differing compliance standard for such small business concerns and organizations if it is lawful, desirable, and feasible to do so.

States that such small enterprises shall be given an opportunity to participate in agency rulemaking, which substantially affects such enterprises, unless otherwise provided.

Requires each agency to review its existing rules and prepare an analysis for purposes of eliminating or modifying those rules which are most burdensome to small businesses and organizations.

Permits any agency to perform the analyses required by this title in conjunction with any other analysis required by law. Declares that such other analysis shall not in itself satisfy the requirements of this title.

Title VI: Sunset Provisions - Requires the Congressional Budget Office in conjunction with the congressional committees having jurisdiction over each Government program, within one year after enactment of this Act, to set forth a timely review of all Government programs.

Terminates any program which has not been reviewed within three years after enactment of this Act unless both Houses of Congress vote to continue such programs pending completion of a review.

Requires that each review: (1) identify the need for the program; (2) identify conflicting or duplicative programs; (3) assess the program's effectiveness and cost; and (4) assess the impact of the program on the national economy.