HR 4250
110th CONGRESS
1st Session
H. R. 4250
To provide grants and loan guarantees for the development and
construction of science parks to promote the clustering of innovation
through high technology activities.
IN THE HOUSE OF REPRESENTATIVES
November 15, 2007
Mrs. WILSON of New Mexico (for herself, Ms. GIFFORDS, Mr. SPRATT, and
Mr. SMITH of Texas) introduced the following bill; which was referred
to the Committee on Science and Technology
A BILL
To provide grants and loan guarantees for the development and
construction of science parks to promote the clustering of innovation
through high technology activities.
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 `Building a Stronger America Act'.
SEC. 2. DEVELOPMENT OF SCIENCE PARKS.
(a) Finding- Section 2 of the Stevenson-Wydler Technology Innovation Act
of 1980 (15 U.S.C. 3701) is amended by adding at the end the following:
`(12) It is in the best interests of the Nation to encourage the formation
of science parks to promote the clustering of innovation through high
technology activities.'.
(b) Definition- Section 4 of such Act (15 U.S.C. 3703) is amended by adding
at the end the following:
`(14) `Business or industrial park' means a primarily for-profit real
estate venture of businesses or industries which do not necessarily
reinforce each other through supply chain or technology transfer mechanisms.
`(A) means a group of interrelated companies and institutions, including
suppliers, service providers, institutions of higher education, start-up
incubators, and trade associations that--
`(i) cooperate and compete with each other;
`(ii) are located in a specific area or region that promotes real
estate development, technology transfer, and partnerships between
such companies and institutions;
`(B) includes a science park, research park, technology park, research
and development park, research and technology park, and science and
technology park; and
`(C) does not include a business or industrial park.
`(16) `Science park infrastructure' means facilities that support the
daily economic activity of a science park.'.
(c) Science Parks- The Stevenson-Wydler Technology Innovation Act of 1980
(15 U.S.C. 3701 et seq.) is amended by adding at the end the following:
`SEC. 24. SCIENCE PARKS.
`(a) Development of Plans for Construction of Science Parks-
`(1) IN GENERAL- The Secretary shall award grants for the development
of feasibility studies and plans for the construction of new or expansion
of existing science parks.
`(2) LIMITATION ON AMOUNT OF GRANTS- The amount of a grant awarded under
this subsection may not exceed $750,000.
`(A) COMPETITION REQUIRED- The Secretary shall award any grant under
this subsection pursuant to a full and open competition.
`(B) GEOGRAPHIC DISPERSION- The Secretary is encouraged to divide
the grants awarded under this subsection among low, medium, and high
population density States.
`(C) ADVERTISING- The Secretary shall advertise any competition under
this paragraph in the Commerce Business Daily.
`(D) SELECTION CRITERIA- The Secretary shall publish the criteria
to be utilized in any competition under this paragraph for the selection
of recipients of grants under this subsection, which shall include
requirements relating to--
`(i) the number of jobs to be created at the science park each year
during its first 5 years;
`(ii) the funding to be required to construct or expand the science
park during its first 5 years;
`(iii) the amount and type of cost matching by the applicant;
`(iv) the types of businesses and research entities expected in
the science park and surrounding community;
`(v) letters of intent by businesses and research entities to locate
in the science park;
`(vi) the expansion capacity of the science park during a 25-year
period;
`(vii) the quality of life at the science park for employees at
the science park;
`(viii) the capability to attract a well trained workforce to the
science park;
`(ix) the management of the science park;
`(x) expected risks in the construction and operation of the science
park;
`(xii) transportation and logistics;
`(xiii) physical infrastructure, including telecommunications; and
`(xiv) ability to collaborate with other science parks throughout
the world.
`(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
$7,500,000 for each of the fiscal years 2008 through 2012 to carry out
this subsection.
`(b) Loan Guarantees for Science Park Infrastructure-
`(1) IN GENERAL- The Secretary may guarantee up to 80 percent of the
loan amount for loans exceeding $10,000,000 for projects for the construction
of science park infrastructure.
`(2) LIMITATIONS ON GUARANTEE AMOUNTS- The maximum amount of loan principal
guaranteed under this subsection may not exceed--
`(A) $50,000,000 with respect to any single project; and
`(B) $500,000,000 with respect to all projects.
`(3) SELECTION OF GUARANTEE RECIPIENTS- The Secretary shall select recipients
of loan guarantees under this subsection based upon the ability of the
recipient to collateralize the loan amount through bonds, equity, property,
and other such criteria as the Secretary shall prescribe. Entities receiving
a grant under subsection (a) are not eligible for a loan guarantee during
the period of such grant.
`(4) TERMS AND CONDITIONS FOR LOAN GUARANTEES- The loans guaranteed
under this subsection shall be subject to such terms and conditions
as the Secretary may prescribe, except that--
`(A) the final maturity of such loans made or guaranteed may not exceed
the lesser of--
`(i) 30 years and 32 days; or
`(ii) 90 percent of the useful life of any physical asset to be
financed by such loan;
`(B) a loan made or guaranteed under this subsection may not be subordinated
to another debt contracted by the borrower or to any other claims
against the borrowers in the case of default;
`(C) a loan may not be guaranteed under this subsection unless the
Secretary determines that the lender is responsible and that adequate
provision is made for servicing the loan on reasonable terms and protecting
the financial interest of the United States;
`(D) a loan may not be guaranteed under this subsection if--
`(i) the income from such loan is excluded from gross income for
purposes of chapter 1 of the Internal Revenue Code of 1986; or
`(ii) the guarantee provides significant collateral or security,
as determined by the Secretary, for other obligations the income
from which is so excluded;
`(E) any guarantee provided under this subsection shall be conclusive
evidence that--
`(i) the guarantee has been properly obtained;
`(ii) the underlying loan qualified for such guarantee; and
`(iii) absent fraud or material misrepresentation by the holder,
the guarantee is presumed to be valid, legal, and enforceable;
`(F) the Secretary shall prescribe explicit standards for use in periodically
assessing the credit risk of new and existing direct loans or guaranteed
loans;
`(G) the Secretary may not extend credit assistance unless the Secretary
has determined that there is a reasonable assurance of repayment;
and
`(H) new loan guarantees may not be committed except to the extent
that appropriations of budget authority to cover their costs are made
in advance, as required under section 504 of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661c).
`(A) IN GENERAL- If, as a result of a default by a borrower under
a loan guaranteed under this subsection, after the holder has made
such further collection efforts and instituted such enforcement proceedings
as the Secretary may require, the Secretary determines that the holder
has suffered a loss, the Secretary shall pay to such holder the percentage
of such loss specified in the guarantee contract. Upon making any
such payment, the Secretary shall be subrogated to all the rights
of the recipient of the payment. The Secretary shall be entitled to
recover from the borrower the amount of any payments made pursuant
to any guarantee entered into under this section.
`(B) ENFORCEMENT OF RIGHTS- The Attorney General shall take such action
as may be appropriate to enforce any right accruing to the United
States as a result of the issuance of any guarantee under this section.
`(C) FORBEARANCE- Nothing in this section may be construed to preclude
any forbearance for the benefit of the borrower which may be agreed
upon by the parties to the guaranteed loan and approved by the Secretary,
if budget authority for any resulting subsidy costs (as defined under
the Federal Credit Reform Act of 1990) is available.
`(D) MANAGEMENT OF PROPERTY- Notwithstanding any other provision of
law relating to the acquisition, handling, or disposal of property
by the United States, the Secretary may complete, recondition, reconstruct,
renovate, repair, maintain, operate, or sell any property acquired
by the Secretary pursuant to the provisions of this section.
`(6) REVIEW- The Comptroller General of the United States shall, not
later than 2 years after the date of the enactment of this section--
`(A) conduct a review of the subsidy estimates for the loan guarantees
under this subsection; and
`(B) submit to Congress a report on the review conducted under this
paragraph.
`(7) TERMINATION- A loan may not be guaranteed under this subsection
after September 30, 2012.
`(8) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated--
`(A) $35,000,000 for the cost, as defined in section 502(5) of the
Federal Credit Reform Act of 1990, of guaranteeing $500,000,000 of
loans under this subsection; and
`(B) $6,000,000 for administrative expenses for fiscal year 2008,
and such sums as are necessary for administrative expenses in subsequent
years.
`(c) National Academy of Sciences Evaluation-
`(1) IN GENERAL- The Secretary shall enter into an agreement with the
National Academy of Sciences under which the Academy shall evaluate,
every 3 years, the activities under this section.
`(2) TRI-ANNUAL REPORT- Under the agreement entered into under paragraph
(1), the Academy shall submit to the Secretary a report on its evaluation
of science park development under that paragraph. Each report may include
such recommendations as the Academy considers appropriate for additional
activities to promote and facilitate the development of science parks
in the United States.
`(d) Tri-Annual Report- Not later than March 31 of every third year, the
Secretary shall submit to Congress a report on the activities under this
section during the preceding 3 years, including any recommendations made
by the National Academy of Sciences under subsection (c)(2) during such
period. Each report may include such recommendations for legislative or
administrative action as the Secretary considers appropriate to further
promote and facilitate the development of science parks in the United
States.
`(e) Rulemaking- Not later than 1 year after the date of the enactment
of this section, the Secretary shall prescribe regulations to carry out
this section in accordance with Office of Management and Budget Circular
A-129, `Policies for Federal Credit Programs and Non-Tax Receivables'.'.
SEC. 3. INTERNATIONAL PARTNERSHIP STUDY.
The Director of the National Science Foundation shall enter into an arrangement
with the National Academy of Sciences for a study of the successes of
international partnerships among governments, industry, and academia in
advancing the capabilities of science and technology in conjunction with
a corresponding increase in business opportunities. Not later than 18
months after the date of enactment of this Act, the Director shall transmit
to the Congress a report on the results of such study.
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