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STEVENSON–WYDLER TECHNOLOGY INNOVATION ACT OF 1980
[As Amended Through P.L. 111–358, Enacted January 4, 2011]
AN ACT To promote United States technological innovation for the achievement of national economic, environmental, and social goals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the ‘‘Stevenson-Wydler Technology Innovation Act of 1980’’. ø15 U.S.C. 3701 note¿ SEC. 2. ø15 U.S.C. 3701¿ FINDINGS.
The Congress finds and declares that: (1) Technology and industrial innovation are central to the
economic, environmental, and social well-being of citizens of the United States.
(2) Technology and industrial innovation offer an improved standard of living, increased public and private sector produc- tivity, creation of new industries and employment opportuni- ties, improved public services and enhanced competitiveness of United States products in world markets.
(3) Many new discoveries and advances in science occur in universities and Federal laboratories, while the application of this new knowledge to commercial and useful public purposes depends largely upon actions by business and labor. Coopera- tion among academia, Federal laboratories, labor, and indus- try, in such forms as technology transfer, personnel exchange, joint research projects, and others, should be renewed, ex- panded, and strengthened.
(4) Small businesses have performed an important role in advancing industrial and technological innovation.
(5) Industrial and technological innovation in the United States may be lagging when compared to historical patterns and other industrialized nations.
(6) Increased industrial and technological innovation would reduce trade deficits, stabilize the dollar, increase productivity gains, increase employment, and stabilize prices.
(7) Government antitrust, economic, trade, patent, procure- ment, regulatory, research and development, and tax policies have significant impacts upon industrial innovation and devel- opment of technology, but there is insufficient knowledge of their effects in particular sectors of the economy.
(8) No comprehensive national policy exists to enhance technological innovation for commercial and public purposes. There is a need for such a policy, including a strong national
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policy supporting domestic technology transfer and utilization of the science and technology resources of the Federal Govern- ment.
(9) It is in the national interest to promote the adaptation of technological innovations to State and local government uses. Technological innovations can improve services, reduce their costs, and increase productivity in State and local govern- ments.
(10) The Federal laboratories and other performers of fed- erally funded research and development frequently provide sci- entific and technological developments of potential use to State and local governments and private industry. These develop- ments, which include inventions, computer software, and train- ing technologies, should be made accessible to those govern- ments and industry. There is a need to provide means of access and to give adequate personnel and funding support to these means.
(11) The Nation should give fuller recognition to individ- uals and companies which have made outstanding contribu- tions to the promotion of technology or technological manpower for the improvement of the economic, environmental, or social wellbeing of the United States.
SEC. 3. ø15 U.S.C. 3702¿ PURPOSE. It is the purpose of this Act to improve the economic, environ-
mental, and social well-being of the United States by— (1) establishing organizations in the executive branch to
study and stimulate technology; (2) promoting technology development through the estab-
lishment of cooperative research centers; (3) stimulating improved utilization of federally funded
technology developments, including inventions, software, and training technologies, by State and local governments and the private sector;
(4) providing encouragement for the development of tech- nology through the recognition of individuals and companies which have made outstanding contributions in technology; and
(5) encouraging the exchange of scientific and technical personnel among academia, industry, and Federal laboratories.
SEC. 4. ø15 U.S.C. 3703¿ DEFINITIONS. As used in this Act, unless the context otherwise requires, the
term— (1) ‘‘Secretary’’ means the Secretary of Commerce. (2) ‘‘Centers’’ means Cooperative Research Centers estab-
lished under section 7 or 9 of this Act. (3) ‘‘Nonprofit institution’’ means an organization owned
and operated exclusively for scientific or educational purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual.
(4) ‘‘Federal laboratory’’ means any laboratory, any feder- ally funded research and development center, or any center es- tablished under section 7 or 9 of this Act that is owned, leased, or otherwise used by a Federal agency and funded by the Fed-
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eral Government, whether operated by the Government or by a contractor.
(5) ‘‘Supporting agency’’ means either the Department of Commerce or the National Science Foundation, as appropriate.
(6) ‘‘Federal agency’’ means any executive agency as de- fined in section 105 of title 5, United States Code, and the mili- tary departments as defined in section 102 of such title, as well as any agency of the legislative branch of the Federal Govern- ment.
(7) ‘‘Invention’’ means any invention or discovery which is or may be patentable or otherwise protected under title 35, United States Code, or any novel variety of plant which is or may be protectable under the Plant Variety Protection Act (7 U.S.C. 2321 et seq.).
(8) ‘‘Made’’ when used in conjunction with any invention means the conception or first actual reduction to practice of such invention.
(9) ‘‘Small business firm’’ means a small business concern as defined in section 2 of Public Law 85–536 (15 U.S.C. 632) and implementing regulations of the Administrator of the Small Business Administration.
(10) ‘‘Training technology’’ means computer software and related materials which are developed by a Federal agency to train employees of such agency, including but not limited to software for computer-based instructional systems and for interactive video disc systems.
(11) ‘‘Clearinghouse’’ means the Clearinghouse for State and Local Initiatives on Productivity, Technology, and Innova- tion established by section 6.
SEC. 5. ø15 U.S.C. 3704¿ EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE TECHNOLOGY.
(a) PROGRAM ESTABLISHMENT.— (1) IN GENERAL.—Beginning in fiscal year 1999, the Sec-
retary shall establish a program to be known as the Experi- mental Program to Stimulate Competitive Technology (referred to in this subsection as the ‘‘program’’). The purpose of the pro- gram shall be to strengthen the technological competitiveness of those States that have historically received less Federal re- search and development funds than those received by a major- ity of the States.
(2) ARRANGEMENTS.—In carrying out the program, the Sec- retary shall—
(A) enter into such arrangements as may be necessary to provide for the coordination of the program through the State committees established under the Experimental Pro- gram to Stimulate Competitive Research of the National Science Foundation; and
(B) cooperate with— (i) any State science and technology council estab-
lished under the program under subparagraph (A); and
(ii) representatives of small business firms and other appropriate technology-based businesses.
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1 Margin so in law.
(3) GRANTS AND COOPERATIVE AGREEMENTS.—In carrying out the program, the Secretary may make grants or enter into cooperative agreements to provide for—
(A) technology research and development; (B) technology transfer from university research; (C) technology deployment and diffusion; and (D) the strengthening of technological capabilities
through consortia comprised of— (i) technology-based small business firms; (ii) industries and emerging companies; (iii) universities; and (iv) State and local development agencies and en-
tities. (4) REQUIREMENTS FOR MAKING AWARDS.—
(A) IN GENERAL.—In making awards under this sub- section, the Secretary shall ensure that the awards are awarded on a competitive basis that includes a review of the merits of the activities that are the subject of the award.
(B) MATCHING REQUIREMENT.—The non-Federal share of the activities (other than planning activities) carried out under an award under this subsection shall be not less than 25 percent of the cost of those activities. (5) CRITERIA FOR STATES.—The Secretary shall establish
criteria for achievement by each State that participates in the program. Upon the achievement of all such criteria, a State shall cease to be eligible to participate in the program.
(b) 1 COORDINATION.—To the extent practicable, in carrying out subsection (a), the Secretary shall coordinate the program with other programs of the Department of Commerce. (c) MINORITY SERVING INSTITUTION DIGITAL AND WIRELESS
TECHNOLOGY OPPORTUNITY PROGRAM.— (1) IN GENERAL.—The Secretary shall establish a Minority
Serving Institution Digital and Wireless Technology Oppor- tunity Program that awards grants, cooperative agreements, and contracts to eligible institutions to enable the eligible insti- tutions in acquiring, and augmenting the institutions’ use of, digital and wireless networking technologies to improve the quality and delivery of educational services at eligible institu- tions.
(2) APPLICATION AND REVIEW PROCEDURES.— (A) IN GENERAL.—To be eligible to receive a grant, co-
operative agreement, or contract under this subsection, an eligible institution shall submit an application to the Sec- retary at such time, in such manner, and containing such information as the Secretary may require. Such applica- tion, at a minimum, shall include a description of how the funds will be used, including a description of any digital and wireless networking technology to be acquired, and a description of how the institution will ensure that digital and wireless networking technology will be made acces- sible to, and employed by, students, faculty, and adminis-
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trators. The Secretary, consistent with subparagraph (C) and in consultation with the advisory council established under subparagraph (B), shall establish procedures to re- view such applications. The Secretary shall publish the ap- plication requirements and review criteria in the Federal Register, along with a statement describing the avail- ability of funds.
(B) ADVISORY COUNCIL.—The Secretary shall establish an advisory council to advise the Secretary on the best ap- proaches to encourage maximum participation by eligible institutions in the program established under paragraph (1), and on the procedures to review applications sub- mitted to the program. In selecting the members of the ad- visory council, the Secretary shall consult with representa- tives of appropriate organizations, including representa- tives of eligible institutions, to ensure that the member- ship of the advisory council includes representatives of mi- nority businesses and eligible institution communities. The Secretary shall also consult with experts in digital and wireless networking technology to ensure that such exper- tise is represented on the advisory council.
(C) REVIEW PANELS.—Each application submitted under this subsection by an eligible institution shall be re- viewed by a panel of individuals selected by the Secretary to judge the quality and merit of the proposal, including the extent to which the eligible institution can effectively and successfully utilize the proposed grant, cooperative agreement, or contract to carry out the program described in paragraph (1). The Secretary shall ensure that the re- view panels include representatives of minority serving in- stitutions and others who are knowledgeable about eligible institutions and technology issues. The Secretary shall en- sure that no individual assigned under this subsection to review any application has a conflict of interest with re- gard to that application. The Secretary shall take into con- sideration the recommendations of the review panel in de- termining whether to award a grant, cooperative agree- ment, or contract to an eligible institution. (3) AWARDS.—
(A) LIMITATION.—An eligible institution that receives a grant, cooperative agreement, or contract under this sub- section that exceeds $2,500,000 shall not be eligible to re- ceive another grant, cooperative agreement, or contract under this subsection.
(B) CONSORTIA.—Grants, cooperative agreements, and contracts may only be awarded to eligible institutions. Eli- gible institutions may seek funding under this subsection for consortia, which may include other eligible institutions, a State or a State educational agency, local educational agencies, institutions of higher education, community- based organizations, national nonprofit organizations, or businesses, including minority businesses.
(C) PLANNING GRANTS.—The Secretary may provide funds to develop strategic plans to implement grants, coop-
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erative agreements, or contracts awarded under this sub- section.
(D) INSTITUTIONAL DIVERSITY.—In awarding grants, co- operative agreements, and contracts to eligible institu- tions, the Secretary shall ensure, to the extent practicable, that awards are made to all types of institutions eligible for assistance under this subsection.
(E) NEED.—In awarding funds under this subsection, the Secretary shall give priority to the eligible institution with the greatest demonstrated need for assistance. (4) AUTHORIZED ACTIVITIES.—An eligible institution may
use a grant, cooperative agreement, or contract awarded under this subsection—
(A) to acquire equipment, instrumentation, networking capability, hardware and software, digital network tech- nology, wireless technology, and infrastructure to further the objective of the program described in paragraph (1);
(B) to develop and provide training, education, and professional development programs, including faculty de- velopment, to increase the use of, and usefulness of, digital and wireless networking technology;
(C) to provide teacher education, including the provi- sion of preservice teacher training and in-service profes- sional development at eligible institutions, library and media specialist training, and preschool and teacher aid certification to individuals who seek to acquire or enhance technology skills in order to use digital and wireless net- working technology in the classroom or instructional proc- ess, including instruction in science, mathematics, engi- neering, and technology subjects;
(D) to obtain capacity-building technical assistance, in- cluding through remote technical support, technical assist- ance workshops, and distance learning services; or
(E) to foster the use of digital and wireless networking technology to improve research and education, including scientific, mathematics, engineering, and technology in- struction. (5) INFORMATION DISSEMINATION.—The Secretary shall con-
vene an annual meeting of eligible institutions receiving grants, cooperative agreements, or contracts under this sub- section to foster collaboration and capacity-building activities among eligible institutions.
(6) MATCHING REQUIREMENT.—The Secretary may not award a grant, cooperative agreement, or contract to an eligi- ble institution under this subsection unless such institution agrees that, with respect to the costs incurred by the institu- tion in carrying out the program for which the grant, coopera- tive agreement, or contract was awarded, such institution shall make available, directly, or through donations from public or private entities, non-Federal contributions in an amount equal to 25 percent of the grant, cooperative agreement, or contract awarded by the Secretary, or $500,000, whichever is the lesser amount. The Secretary shall waive the matching requirement for any institution or consortium with no endowment, or an en-
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dowment that has a current dollar value lower than $50,000,000.
(7) ANNUAL REPORT AND ASSESSMENTS.— (A) ANNUAL REPORT REQUIRED FROM RECIPIENTS.—
Each eligible institution that receives a grant, cooperative agreement, or contract awarded under this subsection shall provide an annual report to the Secretary on its use of the grant, cooperative agreement, or contract.
(B) INDEPENDENT ASSESSMENTS.— (i) CONTRACT TO CONDUCT ASSESSMENTS.—Not
later than 6 months after the date of enactment of this subsection, the Secretary shall enter into a contract with the National Academy of Public Administration to conduct periodic assessments of the program estab- lished under paragraph (1). The assessments shall be conducted once every 3 years during the 10-year pe- riod following the date of enactment of this subsection.
(ii) EVALUATIONS AND RECOMMENDATIONS.—The assessments described in clause (i) shall include—
(I) an evaluation of the effectiveness of the program established under paragraph (1) in im- proving the education and training of students, faculty, and staff at eligible institutions that have been awarded grants, cooperative agreements, or contracts under the program;
(II) an evaluation of the effectiveness of the program in improving access to, and familiarity with, digital and wireless networking technology for students, faculty, and staff at all eligible insti- tutions;
(III) an evaluation of the procedures estab- lished under paragraph (2)(A); and
(IV) recommendations for improving the pro- gram, including recommendations concerning the continuing need for Federal support. (iii) REVIEW OF REPORTS.—In carrying out the as-
sessments under this subparagraph, the National Academy of Public Administration shall review the re- ports submitted to the Secretary under subparagraph (A).
(iv) REPORT TO CONGRESS.—Upon completion of each assessment under this subparagraph, the Sec- retary shall transmit the assessment to Congress along with a summary of the Secretary’s plans, if any, to implement the recommendations of the National Academy of Public Administration.
(8) DEFINITIONS.—In this subsection: (A) DIGITAL AND WIRELESS NETWORKING TECH-
NOLOGY.—The term ‘‘digital and wireless networking tech- nology’’ means computer and communications equipment and software that facilitates the transmission of informa- tion in a digital format.
(B) ELIGIBLE INSTITUTION.—The term ‘‘eligible institu- tion’’ means an institution that is—
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(i) a part B institution, as defined in section 322(2) of the Higher Education Act of 1965 (20 U.S.C. 1061(2)), an institution identified in subparagraph (A), (B), or (C) of section 326(e)(1) of such Act (20 U.S.C. 1063b(e)(1)(A), (B), or (C)), or a consortium of institu- tions described in this clause;
(ii) a Hispanic-serving institution, as defined in section 502(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1101a(a)(5));
(iii) a Tribal College or University, as defined in section 316(b)(3) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)(3));
(iv) an Alaska Native-serving institution, as de- fined in section 317(b) of the Higher Education Act of 1965 (20 U.S.C. 1059d(b));
(v) a Native Hawaiian-serving institution, as de- fined in section 317(b) of the Higher Education Act of 1965 (20 U.S.C. 1059d(b));
(vi) a Predominately Black Institution, as defined in section 318 of the Higher Education Act of 1965 (20 U.S.C. 1059e);
(vii) a Native American-serving, nontribal institu- tion, as defined in section 319 of the Higher Education Act of 1965 (20 U.S.C. 1059f);
(viii) an Asian American and Native American Pa- cific Islander-serving institution, as defined in section 320 of the Higher Education Act of 1965 (20 U.S.C. 1059g); or
(ix) a minority institution, as defined in section 365 of the Higher Education Act of 1965 (20 U.S.C. 1067k), with an enrollment of needy students, as de- fined in section 312(d) of the Higher Education Act of 1965 (20 U.S.C. 1058(d)). (C) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘in-
stitution of higher education’’ has the meaning given the term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
(D) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local educational agency’’ has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
(E) MINORITY BUSINESS.—The term ‘‘minority busi- ness’’ includes HUBZone small business concerns (as de- fined in section 3(p) of the Small Business Act (15 U.S.C. 632(p))).
(F) MINORITY INDIVIDUAL.—The term ‘‘minority indi- vidual’’ means an American Indian, Alaskan Native, Black (not of Hispanic origin), Hispanic (including persons of Mexican, Puerto Rican, Cuban, and Central or South American origin), or Pacific Islander individual.
(G) STATE.—The term ‘‘State’’ has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
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(H) STATE EDUCATIONAL AGENCY.—The term ‘‘State educational agency’’ has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
SEC. 6. ø15 U.S.C. 3704a¿ CLEARINGHOUSE FOR STATE AND LOCAL INI- TIATIVES ON PRODUCTIVITY, TECHNOLOGY, AND INNOVA- TION.
(a) ESTABLISHMENT.—There is established within the Office of Productivity, Technology, and Innovation a Clearinghouse for State and Local Initiatives on Productivity, Technology, and Innovation. The Clearinghouse shall serve as a central repository of informa- tion on initiatives by State and local governments to enhance the competitiveness of American business through the stimulation of productivity, technology, and innovation and Federal efforts to as- sist State and local governments to enhance competitiveness.
(b) RESPONSIBILITIES.—The Clearinghouse may— (1) establish relationships with State and local govern-
ments, and regional and multistate organizations of such gov- ernments, which carry out such initiatives;
(2) collect information on the nature, extent, and effects of such initiatives, particularly information useful to the Con- gress, Federal agencies, State and local governments, regional and multistate organizations of such governments, businesses, and the public throughout the United States;
(3) disseminate information collected under paragraph (2) through reports, directories, handbooks, conferences, and semi- nars;
(4) provide technical assistance and advice to such govern- ments with respect to such initiatives, including assistance in determining sources of assistance from Federal agencies which may be available to support such initiatives;
(5) study ways in which Federal agencies, including Fed- eral laboratories, are able to use their existing policies and pro- grams to assist State and local governments, and regional and multistate organizations of such governments, to enhance the competitiveness of American business;
(6) make periodic recommendations to the Secretary, and to other Federal agencies upon their request, concerning modi- fications in Federal policies and programs which would im- prove Federal assistance to State and local technology and business assistance programs;
(7) develop methodologies to evaluate State and local pro- grams, and, when requested, advise State and local govern- ments, and regional and multistate organizations of such gov- ernments, as to which programs are most effective in enhanc- ing the competitiveness of American business through the stimulation of productivity, technology, and innovation; and
(8) make use of, and disseminate, the nationwide study of State industrial extension programs conducted by the Sec- retary. (c) CONTRACTS.—In carrying out subsection (b), the Secretary
may enter into contracts for the purpose of collecting information on the nature, extent, and effects of initiatives.
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(d) TRIENNIAL REPORT.—The Secretary shall prepare and transmit to the Congress once each 3 years a report on initiatives by State and local governments to enhance the competitiveness of American businesses through the stimulation of productivity, tech- nology, and innovation. The report shall include recommendations to the President, the Congress, and to Federal agencies on the ap- propriate Federal role in stimulating State and local efforts in this area. The first of these reports shall be transmitted to the Congress before January 1, 1989. SEC. 7. ø15 U.S.C. 3705¿ COOPERATIVE RESEARCH CENTERS.
(a) ESTABLISHMENT.—The Secretary shall provide assistance for the establishment of Cooperative Research Centers. Such Cen- ters shall be affiliated with any university, or other nonprofit insti- tution, or group thereof, that applies for and is awarded a grant or enters into a cooperative agreement under this section. The objec- tive of the Centers is to enhance technological innovation through—
(1) the participation of individuals from industry and uni- versities in cooperative technological innovation activities;
(2) the development of the generic research base, impor- tant for technological advance and innovative activity, in which individual firms have little incentive to invest, but which may have significant economic or strategic importance, such as manufacturing technology;
(3) the education and training of individuals in the techno- logical innovation process;
(4) the improvement of mechanisms for the dissemination of scientific, engineering, and technical information among uni- versities and industry;
(5) the utilization of the capability and expertise, where appropriate, that exists in Federal laboratories; and
(6) the development of continuing financial support from other mission agencies, from State and local government, and from industry and universities through, among other means, fees, licenses, and royalties. (b) ACTIVITIES.—The activities of the Centers shall include, but
need not be limited to— (1) research supportive of technological and industrial in-
novation including cooperative industry-university research; (2) assistance to individuals and small business in the gen-
eration, evaluation and development of technological ideas sup- portive of industrial innovation and new business ventures;
(3) technical assistance and advisory services to industry, particularly small businesses; and
(4) curriculum development, training, and instruction in invention, entrepreneurship, and industrial innovation.
Each Center need not undertake all of the activities under this subsection.
(c) REQUIREMENTS.—Prior to establishing a Center, the Sec- retary shall find that—
(1) consideration has been given to the potential contribu- tion of the activities proposed under the Center to productivity,
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employment, and economic competitiveness of the United States;
(2) a high likelihood exists of continuing participation, ad- vice, financial support, and other contributions from the pri- vate sector;
(3) the host university or other nonprofit institution has a plan for the management and evaluation of the activities pro- posed within the particular Center, including:
(A) the agreement between the parties as to the alloca- tion of patent rights on a nonexclusive, partially exclusive, or exclusive license basis to and inventions conceived or made under the auspices of the Center; and
(B) the consideration of means to place the Center, to the maximum extent feasible, on a self-sustaining basis; (4) suitable consideration has been given to the univer-
sity’s or other nonprofit institution’s capabilities and geo- graphical location; and
(5) consideration has been given to any effects upon com- petition of the activities proposed under the Center. (d) PLANNING GRANTS.—The Secretary is authorized to make
available nonrenewable planning grants to universities or nonprofit institutions for the purpose of developing a plan required under subsection (c)(3).
(e) RESEARCH AND DEVELOPMENT UTILIZATION.—In the pro- motion of technology from research and development efforts by Centers under this section, chapter 18 of title 35, United States Code, shall apply to the extent not inconsistent with this section. SEC. 8. ø15 U.S.C. 3706¿ GRANTS AND COOPERATIVE AGREEMENTS.
(a) IN GENERAL.—The Secretary may make grants and enter into cooperative agreements according to the provisions of this sec- tion in order to assist any activity consistent with this Act, includ- ing activities performed by individuals. The total amount of any such grant or cooperative agreement may not exceed 75 percent of the total cost of the program.
(b) ELIGIBILITY AND PROCEDURE.—Any person or institution may apply to the Secretary for a grant or cooperative agreement available under this section. Application shall be made in such form and manner, and with such content and other submissions, as the Assistant Secretary shall prescribe. The Secretary shall act upon each such application within 90 days after the date on which all required information is received.
(c) TERMS AND CONDITIONS.— (1) Any grant made, or cooperative agreement entered
into, under this section shall be subject to the limitations and provisions set forth in paragraph (2) of this subsection, and to such other terms, conditions, and requirements as the Sec- retary deems necessary or appropriate.
(2) Any person who receives or utilizes any proceeds of any grant made or cooperative agreement entered into under this section shall keep such records as the Secretary shall by regu- lation prescribe as being necessary and appropriate to facilitate effective audit and evaluation, including records which fully disclose the amount and disposition by such recipient of such
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proceeds, the total cost of the program or project in connection with which such proceeds were used, and the amount, if any, of such costs which was provided through other sources.
SEC. 9. ø15 U.S.C. 3707¿ NATIONAL SCIENCE FOUNDATION COOPERA- TIVE RESEARCH CENTERS.
(a) ESTABLISHMENT AND PROVISIONS.—The National Science Foundation shall provide assistance for the establishment of Coop- erative Research Centers. Such Centers shall be affiliated with a university or other nonprofit institution, or a group thereof. The ob- jective of the Centers is to enhance technological innovation as pro- vided in section 7(a) through the conduct of activities as provided in section 7(b).
(b) PLANNING GRANTS.—The National Science Foundation is authorized to make available nonrenewable planning grants to uni- versities or nonprofit institutions for the purpose of developing the plan as described under section 7(c)(3).
(c) TERMS AND CONDITIONS.—Grants, contracts, and coopera- tive agreements entered into by the National Science Foundation in execution of the powers and duties of the National Science Foun- dation under this Act shall be governed by the National Science Foundation Act of 1950 and other pertinent Acts. SEC. 10. ø15 U.S.C. 3708¿ ADMINISTRATIVE ARRANGEMENTS.
(a) COORDINATION.—The Secretary and the National Science Foundation shall, on a continuing basis, obtain the advice and co- operation of departments and agencies whose missions contribute to or are affected by the programs established under this Act, in- cluding the development of an agenda for research and policy ex- perimentation. These departments and agencies shall include but not be limited to the Departments of Defense, Energy, Education, Health and Human Services, Housing and Urban Development and Space Administration, Small Business Administration, Council of Economic Advisers, Council on Environmental Quality, and Office of Science and Technology Policy.
(b) COOPERATION.—It is the sense of the Congress that depart- ments and agencies, including the Federal laboratories, whose mis- sions are affected by, or could contribute to, the programs estab- lished under this Act, should, within the limits of budgetary au- thorizations and appropriations, support or participate in activities or projects authorized by this Act.
(c) ADMINISTRATIVE AUTHORIZATION.— (1) Departments and agencies described in subsection (b)
are authorized to participate in, contribute to, and serve as re- sources for the Centers and for any other activities authorized under this Act.
(2) The Secretary and the National Science Foundation are authorized to receive moneys and to receive other forms of as- sistance from other departments or agencies to support activi- ties of the Centers and any other activities authorized under this Act. (d) COOPERATIVE EFFORTS.—The Secretary and the National
Science Foundation shall, on a continuing basis, provide each other the opportunity to comment on any proposed program of activity under section 7, 9, 11, 15, 17, or 20 of this Act before funds are
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committed to such program in order to mount complementary ef- forts and avoid duplication. SEC. 11. ø15 U.S.C. 3710¿ UTILIZATION OF FEDERAL TECHNOLOGY.
(a) POLICY.—(1) It is the continuing responsibility of the Fed- eral Government to ensure the full use of the results of the Na- tion’s Federal investment in research and development. To this end the Federal Government shall strive where appropriate to transfer federally owned or originated technology to State and local govern- ments and to the private sector.
(2) Technology transfer, consistent with mission responsibil- ities, is a responsibility of each laboratory science and engineering professional.
(3) Each laboratory director shall ensure that efforts to trans- fer technology are considered positively in laboratory job descrip- tions, employee promotion policies, and evaluation of the job per- formance of scientists and engineers in the laboratory.
(b) ESTABLISHMENT OF RESEARCH AND TECHNOLOGY APPLICA- TIONS OFFICES.—Each Federal laboratory shall establish an Office of Research and Technology Applications. Laboratories having ex- isting organizational structures which perform the functions of this section may elect to combine the Office of Research and Technology Applications within the existing organization. The staffing and funding levels for these offices shall be determined between each Federal laboratory and the Federal agency operating or directing the laboratory, except that (1) each laboratory having 200 or more full-time equivalent scientific, engineering, and related technical positions shall provide one or more full-time equivalent positions as staff for its Office of Research and Technology Applications, and (2) each Federal agency which operates or directs one or more Federal laboratories shall make available sufficient funding, either as a separate line item or from the agency’s research and development budget, to support the technology transfer function at the agency and at its laboratories, including support of the Offices of Research and Technology Applications. Furthermore, individuals filling posi- tions in an Office of Research and Technology Applications shall be included in the overall laboratory/agency management development program so as to ensure that highly competent technical managers are full participants in the technology transfer process.
(c) FUNCTIONS OF RESEARCH AND TECHNOLOGY APPLICATIONS OFFICE.—It shall be the function of each Office of Research and Technology Applications—
(1) to prepare application assessments for selected re- search and development projects in which that laboratory is engaged and which in the opinion of the laboratory may have potential commercial applications.
(2) to provide and disseminate information on federally owned or originated products, processes, and services having potential application to State and local governments and to pri- vate industry;
(3) to cooperate with and assist the National Technical In- formation Service, the Federal Laboratory Consortium for Technology Transfer, and other organizations which link the research and development resources of that laboratory and the
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Federal Government as a whole to potential users in State and local government and private industry;
(4) to provide technical assistance to State and local gov- ernment officials; and
(5) to participate, where feasible, in regional, State, and local programs designed to facilitate or stimulate the transfer of technology for the benefit of the region, State, or local juris- diction in which the Federal laboratory is located.
Agencies which have established organizational structures outside their Federal laboratories which have as their principal purpose the transfer of federally owned or originated technology to State and local government and to the private sector may elect to per- form the functions of this subsection in such organizational struc- tures. No Office of Research and Technology Applications or other organizational structures performing the functions of this sub- section shall substantially compete with similar services available in the private sector.
(d) DISSEMINATION OF TECHNICAL INFORMATION.—The National Technical Information Service shall—
(1) serve as a central clearinghouse for the collection, dis- semination and transfer of information on federally owned or originated technologies having potential application to State and local governments and to private industry;
(2) utilize the expertise and services of the National Science Foundation and the Federal Laboratory Consortium for Technology Transfer; particularly in dealing with State and local governments;
(3) receive requests for technical assistance from State and local governments, respond to such requests with published in- formation available to the Service, and refer such requests to the Federal Laboratory Consortium for Technology Transfer to the extent that such requests require a response involving more than the published information available to the Service;
(4) provide funding, at the discretion of the Secretary, for Federal laboratories to provide the assistance specified in sub- section (c)(3);
(5) use appropriate technology transfer mechanisms such as personnel exchanges and computer-based systems; and
(6) maintain a permanent archival repository and clearing- house for the collection and dissemination of nonclassified sci- entific, technical, and engineering information. (e) ESTABLISHMENT OF FEDERAL LABORATORY CONSORTIUM FOR
TECHNOLOGY TRANSFER.—(1) There is hereby established the Fed- eral Laboratory Consortium for Technology Transfer (hereinafter referred to as the ‘‘Consortium’’) which, in cooperation with Federal laboratories and the private sector, shall—
(A) develop and (with the consent of the Federal laboratory concerned) administer techniques, training courses, and mate- rials concerning technology transfer to increase the awareness of Federal laboratory employees regarding the commercial po- tential of laboratory technology and innovations;
(B) furnish advice and assistance requested by Federal agencies and laboratories for use in their technology transfer
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programs (including the planning of seminars for small busi- ness and other industry);
(C) provide a clearinghouse for requests, received at the laboratory level, for technical assistance from States and units of local governments, businesses, industrial development orga- nizations, not-for-profit organizations including universities, Federal agencies and laboratories, and other persons, and—
(i) to the extent that such requests can be responded to with published information available to the National Technical Information Service, refer such requests to that Service, and
(ii) otherwise refer these requests to the appropriate Federal laboratories and agencies; (D) facilitate communication and coordination between Of-
fices of Research and Technology Applications of Federal lab- oratories;
(E) utilize (with the consent of the agency involved) the ex- pertise and services of the National Science Foundation, the Department of Commerce, the National Aeronautics and Space Administration, and other Federal agencies, as necessary;
(F) with the consent of any Federal laboratory, facilitate the use by such laboratory of appropriate technology transfer mechanisms such as personnel exchanges and computer-based systems;
(G) with the consent of any Federal laboratory, assist such laboratory to establish programs using technical volunteers to provide technical assistance to communities related to such laboratory;
(H) facilitate communication and cooperation between Of- fices of Research and Technology Applications of Federal lab- oratories and regional, State, and local technology transfer or- ganizations;
(I) when requested, assist colleges or universities, busi- nesses, nonprofit organizations, State or local governments, or regional organizations to establish programs to stimulate re- search and to encourage technology transfer in such areas as technology program development, curriculum design, long-term research planning, personnel needs projections, and produc- tivity assessments;
(J) seek advice in each Federal laboratory consortium re- gion from representatives of State and local governments, large and small business, universities, and other appropriate persons on the effectiveness of the program (and any such advice shall be provided at no expense to the Government); and
(K) work with the Director of the National Institute on Disability and Rehabilitation Research to compile a compen- dium of current and projected Federal Laboratory technologies and projects that have or will have an intended or recognized impact on the available range of assistive technology for indi- viduals with disabilities (as defined in section 3 of the Assistive Technology Act of 1998), including technologies and projects that incorporate the principles of universal design (as defined in section 3 of such Act), as appropriate.
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(2) The membership of the Consortium shall consist of the Fed- eral laboratories described in clause (1) of subsection (b) and such other laboratories as may choose to join the Consortium. The rep- resentatives to the Consortium shall include a senior staff member of each Federal laboratory which is a member of the Consortium and a senior representative appointed from each Federal agency with one or more member laboratories.
(3) The representatives to the Consortium shall elect a Chair- man of the Consortium.
(4) The Director of the National Institute of Standards and Technology shall provide the Consortium, on a reimbursable basis, with administrative services, such as office space, personnel, and support services of the Institute, as requested by the Consortium and approved by such Director.
(5) Each Federal laboratory or agency shall transfer technology directly to users or representatives of users, and shall not transfer technology directly to the Consortium. Each Federal laboratory shall conduct and transfer technology only in accordance with the practices and policies of the Federal agency which owns, leases, or otherwise uses such Federal laboratory.
(6) Not later than one year after the date of the enactment of this subsection, and every year thereafter, the Chairman of the Consortium shall submit a report to the President, to the appro- priate authorization and appropriation committees of both Houses of the Congress, and to each agency with respect to which a trans- fer of funding is made (for the fiscal year or years involved) under paragraph (7), concerning the activities of the Consortium and the expenditures made by it under this subsection during the year for which the report is made. Such report shall include an annual independent audit of the financial statements of the Consortium, conducted in accordance with generally accepted accounting prin- ciples.
(7)(A) Subject to subparagraph (B), an amount equal to 0.008 percent of the budget of each Federal agency from any Federal source, including related overhead, that is to be utilized by or on behalf of the laboratories of such agency for a fiscal year referred to in subparagraph (B)(ii) shall be transferred by such agency to the National Institute of Standards at the beginning of the fiscal year involved. Amounts so transferred shall be provided by the In- stitute to the Consortium for the purpose of carrying out activities of the Consortium under this subsection.
(B) A transfer shall be made by any Federal agency under sub- paragraph (A), for any fiscal year, only if the amount so transferred by that agency (as determined under such subparagraph) would ex- ceed $10,000.
(C) The heads of Federal agencies and their designees, and the directors of Federal laboratories, may provide such additional sup- port for operations of the Consortium as they deem appropriate.
(f ) AGENCY REPORTS ON UTILIZATION.— (1) IN GENERAL.—Each Federal agency which operates or
directs one or more Federal laboratories or which conducts ac- tivities under sections 207 and 209 of title 35, United States Code, shall report annually to the Office of Management and Budget, as part of the agency’s annual budget submission, on
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the activities performed by that agency and its Federal labora- tories under the provisions of this section and of sections 207 and 209 of title 35, United States Code.
(2) CONTENTS.—The report shall include— (A) an explanation of the agency’s technology transfer
program for the preceding fiscal year and the agency’s plans for conducting its technology transfer function, in- cluding its plans for securing intellectual property rights in laboratory innovations with commercial promise and plans for managing its intellectual property so as to ad- vance the agency’s mission and benefit the competitiveness of United States industry; and
(B) information on technology transfer activities for the preceding fiscal year, including—
(i) the number of patent applications filed; (ii) the number of patents received; (iii) the number of fully-executed licenses which
received royalty income in the preceding fiscal year, categorized by whether they are exclusive, partially- exclusive, or non-exclusive, and the time elapsed from the date on which the license was requested by the li- censee in writing to the date the license was executed;
(iv) the total earned royalty income including such statistical information as the total earned royalty in- come, of the top 1 percent, 5 percent, and 20 percent of the licenses, the range of royalty income, and the median, except where disclosure of such information would reveal the amount of royalty income associated with an individual license or licensee;
(v) what disposition was made of the income de- scribed in clause (iv);
(vi) the number of licenses terminated for cause; and
(vii) any other parameters or discussion that the agency deems relevant or unique to its practice of technology transfer.
(3) COPY TO SECRETARY; ATTORNEY GENERAL; CONGRESS.— The agency shall transmit a copy of the report to the Secretary of Commerce and the Attorney General for inclusion in the an- nual report to Congress and the President required by sub- section (g)(2).
(4) PUBLIC AVAILABILITY.—Each Federal agency reporting under this subsection is also strongly encouraged to make the information contained in such report available to the public through Internet sites or other electronic means. (g) FUNCTIONS OF THE SECRETARY.—(1) The Secretary, in con-
sultation with other Federal agencies, may— (A) make available to interested agencies the expertise of
the Department of Commerce regarding the commercial poten- tial of inventions and methods and options for commercializa- tion which are available to the Federal laboratories, including research and development limited partnerships;
(B) develop and disseminate to appropriate agency and laboratory personnel model provisions for use on a voluntary
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basis in cooperative research and development arrangements; and
(C) furnish advice and assistance, upon request, to Federal agencies concerning their cooperative research and develop- ment programs and projects.
(2) REPORTS.— (A) ANNUAL REPORT REQUIRED.—The Secretary, in con-
sultation with the Attorney General and the Commissioner of Patents and Trademarks, shall submit each fiscal year, beginning 1 year after the enactment of the Technology Transfer Commercialization Act of 2000, a summary report to the President, the United States Trade Representative, and the Congress on the use by Federal agencies and the Secretary of the technology transfer authorities specified in this Act and in sections 207 and 209 of title 35, United States Code.
(B) CONTENT.—The report shall— (i) draw upon the reports prepared by the agencies
under subsection (f ); (ii) discuss technology transfer best practices and
effective approaches in the licensing and transfer of technology in the context of the agencies’ missions; and
(iii) discuss the progress made toward develop- ment of additional useful measures of the outcomes of technology transfer programs of Federal agencies. (C) PUBLIC AVAILABILITY.—The Secretary shall make
the report available to the public through Internet sites or other electronic means.
(3) Not later than one year after the date of the enactment of the Federal Technology Transfer Act of 1986, the Secretary shall submit to the President and the Congress a report regarding—
(A) any copyright provisions or other types of barriers which tend to restrict or limit the transfer of federally funded computer software to the private sector and to State and local governments, and agencies of such State and local govern- ments; and
(B) the feasibility and cost of compiling and maintaining a current and comprehensive inventory of all federally funded training software. (h) DUPLICATION OF REPORTING.—The reporting obligations im-
posed by this section— (1) are not intended to impose requirements that duplicate
requirements imposed by the Government Performance and Results Act of 1993 (31 U.S.C. 1101 note);
(2) are to be implemented in coordination with the imple- mentation of that Act; and
(3) are satisfied if an agency provided the information con- cerning technology transfer activities described in this section in its annual submission under the Government Performance and Results Act of 1993 (31 U.S.C. 1101 note). (i) RESEARCH EQUIPMENT.—The Director of a laboratory, or the
head of any Federal agency or department, may loan, lease, or give research equipment that is excess to the needs of the laboratory,
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19 Sec. 12STEVENSON–WYDLER ACT OF 1980
agency, or department to an educational institution or nonprofit or- ganization for the conduct of technical and scientific education and research activities. Title of ownership shall transfer with a gift under this section. SEC. 12. ø15 U.S.C. 3710a¿ COOPERATIVE RESEARCH AND DEVELOP-
MENT AGREEMENTS. (a) GENERAL AUTHORITY.—Each Federal agency may permit
the director of any of its Government-operated Federal laboratories, and, to the extent provided in an agency-approved joint work state- ment or, if permitted by the agency, in an agency-approved annual strategic plan, contractor-operated laboratories—
(1) to enter into cooperative research and development agreements on behalf of such agency (subject to subsection (c) of this section) with other Federal agencies; units of State or local government; industrial organizations (including corpora- tions, partnerships, and limited partnerships, and industrial development organizations); public and private foundations; nonprofit organizations (including universities); or other per- sons (including licensees of inventions owned by the Federal agency); and
(2) to negotiate licensing agreements under section 207 of title 35, United States Code, or under other authorities (in the case of a Government-owned, contractor-operated laboratory, subject to subsection (c) of this section) for inventions made or other intellectual property developed at the laboratory and other inventions or other intellectual property that may be vol- untarily assigned to the Government. (b) ENUMERATED AUTHORITY.—(1) Under an agreement entered
into pursuant to subsection (a)(1), the laboratory may grant, or agree to grant in advance, to a collaborating party patent licenses or assignments, or options thereto, in any invention made in whole or in part by a laboratory employee under the agreement, or, sub- ject to section 209 of title 35, United States Code, may grant a li- cense to an invention which is federally owned, for which a patent application was filed before the signing of the agreement, and di- rectly within the scope of the work under the agreement, for rea- sonable compensation when appropriate. The laboratory shall en- sure, through such agreement, that the collaborating party has the option to choose an exclusive license for a pre-negotiated field of use for any such invention under the agreement or, if there is more than one collaborating party, that the collaborating parties are of- fered the option to hold licensing rights that collectively encompass the rights that would be held under such an exclusive license by one party. In consideration for the Government’s contribution under the agreement, grants under this paragraph shall be subject to the following explicit conditions:
(A) A nonexclusive, nontransferable, irrevocable, paid-up license from the collaborating party to the laboratory to prac- tice the invention or have the invention practiced throughout the world by or on behalf of the Government. In the exercise of such license, the Government shall not publicly disclose trade secrets or commercial or financial information that is privileged or confidential within the meaning of section 552(b)(4) of title 5, United States Code, or which would be con-
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sidered as such if it had been obtained from a non-Federal party.
(B) If a laboratory assigns title or grants an exclusive li- cense to such an invention, the Government shall retain the right—
(i) to require the collaborating party to grant to a re- sponsible applicant a nonexclusive, partially exclusive, or exclusive license to use the invention in the applicant’s li- censed field of use, on terms that are reasonable under the circumstances; or
(ii) if the collaborating party fails to grant such a li- cense, to grant the license itself. (C) The Government may exercise its right retained under
subparagraph (B) only in exceptional circumstances and only if the Government determines that—
(i) the action is necessary to meet health or safety needs that are not reasonably satisfied by the collabo- rating party;
(ii) the action is necessary to meet requirements for public use specified by Federal regulations, and such re- quirements are not reasonably satisfied by the collabo- rating party; or
(iii) the collaborating party has failed to comply with an agreement containing provisions described in sub- section (c)(4)(B).
This determination is subject to administrative appeal and ju- dicial review under section 203(2) of title 35, United States Code. (2) Under agreements entered into pursuant to subsection
(a)(1), the laboratory shall ensure that a collaborating party may retain title to any invention made solely by its employee in ex- change for normally granting the Government a nonexclusive, non- transferable, irrevocable, paid-up license to practice the invention or have the invention practiced throughout the world by or on be- half of the Government for research or other Government purposes.
(3) Under an agreement entered into pursuant to subsection (a)(1), a laboratory may—
(A) accept, retain, and use funds, personnel, services, and property from a collaborating party and provide personnel, services, and property to a collaborating party;
(B) use funds received from a collaborating party in ac- cordance with subparagraph (A) to hire personnel to carry out the agreement who will not be subject to full-time-equivalent restrictions of the agency;
(C) to the extent consistent with any applicable agency re- quirements or standards of conduct, permit an employee or former employee of the laboratory to participate in an effort to commercialize an invention made by the employee or former employee while in the employment or service of the Govern- ment; and
(D) waive, subject to reservation by the Government of a nonexclusive, irrevocable, paid-up license to practice the inven- tion or have the invention practiced throughout the world by or on behalf of the Government, in advance, in whole or in
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part, any right of ownership which the Federal Government may have to any subject invention made under the agreement by a collaborating party or employee of a collaborating party. (4) A collaborating party in an exclusive license in any inven-
tion made under an agreement entered into pursuant to subsection (a)(1) shall have the right of enforcement under chapter 29 of title 35, United States Code.
(5) A Government-owned, contractor-operated laboratory that enters into a cooperative research and development agreement pur- suant to subsection (a)(1) may use or obligate royalties or other in- come accruing to the laboratory under such agreement with respect to any invention only—
(A) for payments to inventors; (B) for purposes described in clauses (i), (ii), (iii), and (iv)
of section 14(a)(1)(B); and (C) for scientific research and development consistent with
the research and development missions and objectives of the laboratory. (6)(A) In the case of a laboratory that is part of the National
Nuclear Security Administration, a designated official of that Ad- ministration may waive any license retained by the Government under paragraph (1)(A), (2), or (3)(D), in whole or in part and ac- cording to negotiated terms and conditions, if the designated offi- cial finds that the retention of the license by the Government would substantially inhibit the commercialization of an invention that would otherwise serve an important national security mission.
(B) The authority to grant a waiver under subparagraph (A) shall expire on the date that is five years after the date of the en- actment of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001. The expiration under the preceding sentence of authority to grant a waiver under subparagraph (A) shall not af- fect any waiver granted under that subparagraph before the expi- ration of such authority.
(C) Not later than February 15 of each year, the Administrator for Nuclear Security shall submit to Congress a report on any waivers granted under this paragraph during the preceding year.
(c) CONTRACT CONSIDERATIONS.—(1) A Federal agency may issue regulations on suitable procedures for implementing the pro- visions of this section; however, implementation of this section shall not be delayed until issuance of such regulations.
(2) The agency in permitting a Federal laboratory to enter into agreements under this section shall be guided by the purposes of this Act.
(3)(A) Any agency using the authority given it under sub- section (a) shall review standards of conduct for its employees for resolving potential conflicts of interest to make sure they ade- quately establish guidelines for situations likely to arise through the use of this authority, including but not limited to cases where present or former employees or their partners negotiate licenses or assignments of titles to inventions or negotiate cooperative re- search and development agreements with federal agencies (includ- ing the agency with which the employee involved is or was for- merly employed).
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(B) If, in implementing subparagraph (A), an agency is unable to resolve potential conflicts of interest within its current statutory framework, it shall propose necessary statutory changes to be for- warded to its authorizing committees in Congress.
(4) The laboratory director in deciding what cooperative re- search and development agreements to enter into shall—
(A) give special consideration to small business firms, and consortia involving small business firms; and
(B) give preference to business units located in the United States which agree that products embodying inventions made under the cooperative research and development agreement or produced through the use of such inventions will be manufac- tured substantially in the United States and, in the case of any industrial organization or other person subject to the control of a foreign company or government, as appropriate, take into consideration whether or not such foreign government permits United States agencies, organizations, or other persons to enter into cooperative research and development agreements and licensing agreements. (5)(A) If the head of the agency or his designee desires an op-
portunity to disapprove or require the modification of any such agreement presented by the director of a Government-operated lab- oratory, the agreement shall provide a 30-day period within which such action must be taken beginning on the date the agreement is presented to him or her by the head of the laboratory concerned.
(B) In any case in which the head of an agency or his designee disapproves or requires the modification of an agreement presented by the director of a Government-operated laboratory under this sec- tion, the head of the agency or such designee shall transmit a writ- ten explanation of such disapproval or modification to the head of the laboratory concerned.
(C)(i) Any non-Federal entity that operates a laboratory pursu- ant to a contract with a Federal agency shall submit to the agency any cooperative research and development agreement that the enti- ty proposes to enter into and the joint work statement if required with respect to that agreement.
(ii) A Federal agency that receives a proposed agreement and joint work statement under clause (i) shall review and approve, re- quest specific modifications to, or disapprove the proposed agree- ment and joint work statement within 30 days after such submis- sion. No agreement may be entered into by a Government-owned, contractor-operated laboratory under this section before both ap- proval of the agreement and approval of a joint work statement under this clause.
(iii) In any case in which an agency which has contracted with an entity referred to in clause (i) disapproves or requests the modi- fication of a cooperative research and development agreement or joint work statement submitted under that clause, the agency shall transmit a written explanation of such disapproval or modification to the head of the laboratory concerned.
(iv) Any agency that has contracted with a non-Federal entity to operate a laboratory may develop and provide to such laboratory one or more model cooperative research and development agree- ments for purposes of standardizing practices and procedures, re-
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solving common legal issues, and enabling review of cooperative re- search and development agreements to be carried out in a routine and prompt manner.
(v) A Federal agency may waive the requirements of clause (i) or (ii) under such circumstances as the agency considers appro- priate.
(6) Each agency shall maintain a record of all agreements en- tered into under this section.
(7)(A) No trade secrets or commercial or financial information that is privileged or confidential, under the meaning of section 552(b)(4) of title 5, United States Code, which is obtained in the conduct of research or as a result of activities under this Act from a non-Federal party participating in a cooperative research and de- velopment agreement shall be disclosed.
(B) The director, or in the case of a contractor-operated labora- tory, the agency, for a period of up to 5 years after development of information that results from research and development activi- ties conducted under this Act and that would be a trade secret or commercial or financial information that is privileged or confiden- tial if the information had been obtained from a non-Federal party participating in a cooperative research and development agree- ment, may provide appropriate protections against the dissemina- tion of such information, including exemption from subchapter II of chapter 5 of title 5, United States Code.
(d) DEFINITION.—As used in this section— (1) the term ‘‘cooperative research and development agree-
ment’’ means any agreement between one or more Federal lab- oratories and one or more non-Federal parties under which the Government, through its laboratories, provides personnel, serv- ices, facilities, equipment, intellectual property, or other re- sources with or without reimbursement (but not funds to non- Federal parties) and the non-Federal parties provide funds, personnel, services, facilities, equipment, intellectual property, or other resources toward the conduct of specified research or development efforts which are consistent with the missions of the laboratory; except that such term does not include a pro- curement contract or cooperative agreement as those terms are used in sections 6303, 6304, and 6305 of title 31, United States Code;
(2) the term ‘‘laboratory’’ means— (A) a facility or group of facilities owned, leased, or
otherwise used by a Federal agency, a substantial purpose of which is the performance of research, development, or engineering by employees of the Federal Government;
(B) a group of Government-owned, contractor-operated facilities (including a weapon production facility of the De- partment of Energy) under a common contract, when a substantial purpose of the contract is the performance of research and development, or the production, maintenance, testing, or dismantlement of a nuclear weapon or its com- ponents, for the Federal Government; and
(C) a Government-owned, contractor-operated facility (including a weapon production facility of the Department of Energy) that is not under a common contract described
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in subparagraph (B), and the primary purpose of which is the performance of research and development, or the pro- duction, maintenance, testing, or dismantlement of a nu- clear weapon or its components, for the Federal Govern- ment,
but such term does not include any facility covered by Execu- tive Order No. 12344, dated February 1, 1982, pertaining to the naval nuclear propulsion program;
(3) the term ‘‘joint work statement’’ means a proposal pre- pared for a Federal agency by the director of a Government- owned, contractor-operated laboratory describing the purpose and scope of a proposed cooperative research and development agreement, and assigning rights and responsibilities among the agency, the laboratory, and any other party or parties to the proposed agreement; and
(4) the term ‘‘weapon production facility of the Department of Energy’’ means a facility under the control or jurisdiction of the Secretary of Energy that is operated for national security purposes and is engaged in the production, maintenance, test- ing, or dismantlement of a nuclear weapon or its components. (e) DETERMINATION OF LABORATORY MISSIONS.—For purposes
of this section, an agency shall make separate determinations of the mission or missions of each of its laboratories.
(f) RELATIONSHIP TO OTHER LAWS.—Nothing in this section is intended to limit or diminish existing authorities of any agency.
(g) PRINCIPLES.—In implementing this section, each agency which has contracted with a non-Federal entity to operate a labora- tory shall be guided by the following principles:
(1) The implementation shall advance program missions at the laboratory, including any national security mission.
(2) Classified information and unclassified sensitive infor- mation protected by law, regulation, or Executive order shall be appropriately safeguarded.
SEC. 13. ø15 U.S.C. 3710b¿ REWARDS FOR SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL OF FEDERAL AGENCIES.
The head of each Federal agency that is making expenditures at a rate of more than $50,000,000 per fiscal year for research and development in its Government-operated laboratories shall use the appropriate statutory authority to develop and implement a cash awards program to reward its scientific, engineering, and technical personnel for—
(1) inventions, innovations computer software, or other outstanding scientific or technological contributions of value to the United States due to commercial application or due to con- tributions to missions of the Federal agency or the Federal gov- ernment, or
(2) exemplary activities that promote the domestic transfer of science and technology development within the Federal Gov- ernment and result in utilization of such science and tech- nology by American industry or business, universities, State or local governments, or other non-Federal parties.
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SEC. 14. ø15 U.S.C. 3710c¿ DISTRIBUTION OF ROYALTIES RECEIVED BY FEDERAL AGENCIES.
(a) IN GENERAL.—(1) Except as provided in paragraphs (2) and (4), any royalties or other payments received by a Federal agency from the licensing and assignment of inventions under agreements entered into by Federal laboratories under section 12, and from the licensing of inventions of Federal laboratories under section 207 of title 35, United States Code, or under any other provision of law, shall be retained by the laboratory which produced the invention and shall be disposed of as follows:
(A)(i) The head of the agency or laboratory, or such indi- vidual’s designee, shall pay each year the first $2,000, and thereafter at least 15 percent, of the royalties or other pay- ments, other than payments of patent costs as delineated by a license or assignment agreement, to the inventor or coinven- tors, if the inventor’s or coinventor’s rights are assigned to the United States.
(ii) An agency or laboratory may provide appropriate in- centives, from royalties, or other payments, to laboratory em- ployees who are not an inventor of such inventions but who substantially increased the technical value of such inventions.
(iii) The agency or laboratory shall retain the royalties and other payments received from an invention until the agency or laboratory makes payments to employees of a laboratory under clause (i) or (ii).
(B) The balance of the royalties or other payments shall be transferred by the agency to its laboratories, with the majority share of the royalties or other payments from any invention going to the laboratory where the invention occurred. The roy- alties or other payments so transferred to any laboratory may be used or obligated by that laboratory during the fiscal year in which they are received or during the 2 succeeding fiscal years—
(i) to reward scientific, engineering, and technical em- ployees of the laboratory, including developers of sensitive or classified technology, regardless of whether the tech- nology has commercial applications;
(ii) to further scientific exchange among the labora- tories of the agency;
(iii) for education and training of employees consistent with the research and development missions and objectives of the agency or laboratory, and for other activities that in- crease the potential for transfer of the technology of the laboratories of the agency;
(iv) for payment of expenses incidental to the adminis- tration and licensing of intellectual property by the agency or laboratory with respect to inventions made at that lab- oratory, including the fees or other costs for the services of other agencies, persons, or organizations for intellectual property management and licensing services; or
(v) for scientific research and development consistent with the research and development missions and objectives of the laboratory.
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26Sec. 14 STEVENSON–WYDLER ACT OF 1980
(C) All royalties or other payments retained by the agency or laboratory after payments have been made pursuant to sub- paragraphs (A) and (B) that is unobligated and unexpended at the end of the second fiscal year succeeding the fiscal year in which the royalties and other payments were received shall be paid into the Treasury. (2) If, after payments to inventors under paragraph (1), the
royalties or other payments received by an agency in any fiscal year exceed 5 percent of the budget of the agency for that year, 75 percent of such excess shall be paid to the Treasury of the United States and the remaining 25 percent may be used or obligated under paragraph (1)(B). Any funds not so used or obligated shall be paid into the Treasury of the United States.
(3) Any payment made to an employee under this section shall be in addition to the regular pay of the employee and to any other awards made to the employee, and shall not affect the entitlement of the employee to any regular pay, annuity, or award to which he is otherwise entitled or for which he is otherwise eligible or limit the amount thereof. Any payment made to an inventor as such shall continue after the inventor leaves the laboratory or agency. Payments made under this section shall not exceed $150,000 per year to any one person, unless the President approves a larger award (with the excess over $150,000 being treated as a Presi- dential award under section 4504 of title 5, United States Code).
(4) A Federal agency receiving royalties or other payments as a result of invention management services performed for another Federal agency or laboratory under section 207 of title 35, United States Code, may retain such royalties or payments to the extent required to offset payments to inventors under clause (i) of para- graph (1)(A), costs and expenses incurred under clause (iv) of para- graph (1)(B), and the cost of foreign patenting and maintenance for any invention of the other agency. All royalties and other payments remaining after offsetting the payments to inventors, costs, and ex- penses described in the preceding sentence shall be transferred to the agency for which the services were performed, for distribution in accordance with paragraph (1)(B).
(b) CERTAIN ASSIGNMENTS.—If the invention involved was one assigned to the Federal agency—
(1) by a contractor, grantee, or participant, or an employee of a contractor, grantee, or participant, in an agreement or other arrangement with the agency, or
(2) by an employee of the agency who was not working in the laboratory at the time the invention was made,
the agency unit that was involved in such assignment shall be con- sidered to be a laboratory for purposes of this section.
(c) REPORTS.—The Comptroller General shall transmit a report to the appropriate committees of the Senate and House of Rep- resentatives on the effectiveness of Federal technology transfer pro- grams, including findings, conclusions, and recommendations for improvements in such programs. The report shall be integrated with, and submitted at the same time as, the report required by section 202(b)(3) of title 35, United States Code.
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SEC. 15. ø15 U.S.C. 3710d¿ EMPLOYEE ACTIVITIES. (a) IN GENERAL.—If a Federal agency which has ownership of
or the right of ownership to an invention made by a Federal em- ployee does not intend to file for a patent application or otherwise to promote commercialization of such invention, the agency shall allow the inventor, if the inventor is a Government employee or former employee who made the invention during the course of em- ployment with the Government, to obtain or retain title to the in- vention (subject to reservation by the Government of a nonexclu- sive, nontransferrable, irrevocable, paid-up license to practice the invention or have the invention practiced throughout the world by or on behalf of the Government). In addition, the agency may con- dition the inventor’s right to title on the timely filing of a patent application in cases when the Government determines that it has or may have a need to practice the invention.
(b) DEFINITION.—For purposes of this section, Federal employ- ees include ‘‘special Government employees’’ as defined in section 202 of title 18, United States Code.
(c) RELATIONSHIP TO OTHER LAWS.—Nothing in this section is intended to limit or diminish existing authorities of any agency. SEC. 16. ø15 U.S.C. 3711¿ NATIONAL TECHNOLOGY AND INNOVATION
MEDAL. (a) ESTABLISHMENT.—There is hereby established a National
Technology and Innovation Medal, which shall be of such design and materials and bear such inscriptions as the President, on the basis of recommendations submitted by the Office of Science and Technology Policy, may prescribe.
(b) AWARD.—The President shall periodically award the medal, on the basis of recommendations received from the Secretary or on the basis of such other information and evidence as he deems ap- propriate, to individuals or companies, which in his judgment are deserving of special recognition by reason of their outstanding con- tributions to the promotion of technology or technological man- power for the improvement of the economic, environmental, or so- cial well-being of the United States.
(c) PRESENTATION.—The presentation of the award shall be made by the President with such ceremonies as he may deem prop- er. SEC. 17. ø15 U.S.C. 3711a¿ MALCOLM BALDRIGE NATIONAL QUALITY
AWARD. (a) ESTABLISHMENT.—There is hereby established the Malcolm
Baldrige National Quality Award, which shall be evidenced by a medal bearing the inscriptions ‘‘Malcolm Baldrige National Quality Award’’ and ‘‘The Quest for Excellence’’. The medal shall be of such design and materials and bear such additional inscriptions as the Secretary may prescribe.
(b) MAKING AND PRESENTATION OF AWARD.—(1) The President (on the basis of recommendations received from the Secretary), or the Secretary, shall periodically make the award to companies and other organizations which in the judgment of the President or the Secretary have substantially benefited the economic or social well- being of the United States through improvements in the quality of their goods or services resulting from the effective practice of qual-
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28Sec. 17 STEVENSON–WYDLER ACT OF 1980
1 Margins so in law.
ity management, and which as a consequence are deserving of spe- cial recognition.
(2) The presentation of the award shall be made by the Presi- dent or the Secretary with such ceremonies as the President or the Secretary may deem proper.
(3) An organization to which an award is made under this sec- tion, and which agrees to help other American organizations im- prove their quality management, may publicize its receipt of such award and use the award in its advertising, but it shall be ineli- gible to receive another such award in the same category for a pe- riod of 5 years.
(c) CATEGORIES IN WHICH AWARD MAY BE GIVEN.—(1) Subject to paragraph (2), separate awards shall be made to qualifying orga- nizations in each of the following categories—
(A) Small businesses. (B) Companies or their subsidiaries. (C) Companies which primarily provide services.
(D) 1 Health care providers. (E) 1 Education providers.
(F) Nonprofit organizations. (2) The Secretary may at any time expand, subdivide, or other-
wise modify the list of categories within which awards may be made as initially in effect under paragraph (1), and may establish separate awards for other organizations including units of govern- ment, upon a determination that the objectives of this section would be better served thereby; except that any such expansion, subdivision, modification, or establishment shall not be effective unless and until the Secretary has submitted a detailed description thereof to the Congress and a period of 30 days has elapsed since that submission.
(3) In any year, not more than 18 awards may be made under this section to recipients who have not previously received an award under this section, and no award shall be made within any category described in paragraph (1) if there are no qualifying enter- prises in that category.
(d) CRITERIA FOR QUALIFICATION.—(1) An organization may qualify for an award under this section only if it—
(A) applies to the Director of the National Institute of Standards and Technology in writing, for the award,
(B) permits a rigorous evaluation of the way in which its business and other operations have contributed to improve- ments in the quality of goods and services, and
(C) meets such requirements and specifications as the Sec- retary, after receiving recommendations from the Board of Overseers established under paragraph (2)(B) and the Director of the National Institute of Standards and Technology, deter- mines to be appropriate to achieve the objectives of this sec- tion.
In applying the provisions of subparagraph (C) with respect to any organization, the Director of the National Institute of Standards and Technology shall rely upon an intensive evaluation by a com- petent board of examiners which shall review the evidence sub-
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29 Sec. 18STEVENSON–WYDLER ACT OF 1980
mitted by the organization and, through a site visit, verify the ac- curacy of the quality improvements claimed. The examination should encompass all aspects of the organization’s current practice of quality management, as well as the organization’s provision for quality management in its future goals. The award shall be given only to organizations which have made outstanding improvements in the quality of their goods or services (or both) and which dem- onstrate effective quality management through the training and in- volvement of all levels of personnel in quality improvement.
(2)(A) The Director of the National Institute of Standards and Technology shall, under appropriate contractual arrangements, carry out the Director’s responsibilities under subparagraphs (A) and (B) of paragraph (1) through one or more broad-based non- profit entities which are leaders in the field of quality management and which have a history of service to society.
(B) The Secretary shall appoint a board of overseers for the award, consisting of at least five persons selected for their pre- eminence in the field of quality management. This board shall meet annually to review the work of the contractor or contractors and make such suggestions for the improvement of the award process as they deem necessary. The board shall report the results of the award activities to the Director of the National Institute of Stand- ards and Technology each year, along with its recommendations for improvement of the process.
(e) INFORMATION AND TECHNOLOGY TRANSFER PROGRAM.—The Director of the National Institute of Standards and Technology shall ensure that all program participants receive the complete re- sults of their audits as well as detailed explanations of all sugges- tions for improvements. The Director shall also provide information about the awards and the successful quality improvement strate- gies and programs of the award-winning participants to all partici- pants and other appropriate groups.
(f) FUNDING.—The Secretary is authorized to seek and accept gifts from public and private sources to carry out the program under this section. If additional sums are needed to cover the full cost of the program, the Secretary shall impose fees upon the orga- nizations applying for the award in amounts sufficient to provide such additional sums. The Director is authorized to use appro- priated funds to carry out responsibilities under this Act.
(g) REPORT.—The Secretary shall prepare and submit to the President and the Congress, within 3 years after the date of the enactment of this section, a report on the progress, findings, and conclusions of activities conducted pursuant to this section along with recommendations for possible modifications thereof. SEC. 18. ø15 U.S.C. 3711b¿ CONFERENCE ON ADVANCED AUTOMOTIVE
TECHNOLOGIES. Not later than 180 days after the date of the enactment of this
section, the Secretary of Commerce, through the Under Secretary of Commerce for Technology, in consultation with other appropriate officials, shall convene a conference of domestic motor vehicle man- ufacturers, parts suppliers, Federal laboratories, and motor vehicle users to explore ways in which cooperatively they can improve the competitiveness of the United States motor vehicle industry by de- veloping new technologies which will enhance the safety and en-
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30Sec. 19 STEVENSON–WYDLER ACT OF 1980
ergy savings, and lessen the environmental impact of domestic motor vehicles, and the results of such conference shall be pub- lished and then submitted to the President and to the Committees on Science, Space, and Technology and Public Works and Transpor- tation of the House of Representatives and the Committee on Com- merce, Science, and Transportation of the Senate. SEC. 19. ø15 U.S.C. 3711c¿ ADVANCED MOTOR VEHICLE RESEARCH
AWARD. (a) ESTABLISHMENT.—There is established a National Award
for the Advancement of Motor Vehicle Research and Development. The award shall consist of a medal, and a cash prize if funding is available for the prize under subsection (c). The medal shall be of such design and materials and bear inscriptions as is determined by the Secretary of Transportation.
(b) MAKING AND PRESENTING AWARD.—The Secretary of Trans- portation shall periodically make and present the award to domes- tic motor vehicle manufacturers, suppliers, or Federal laboratory personnel who, in the opinion of the Secretary of Transportation, have substantially improved domestic motor vehicle research and development in safety, energy savings, or environmental impact. No person may receive the award more than once every 5 years.
(c) FUNDING FOR AWARD.—The Secretary of Transportation may seek and accept gifts of money from private sources for the purpose of making cash prize awards under this section. Such money may be used only for that purpose, and only such money may be used for that purpose. SEC. 20. ø15 U.S.C. 3712¿ PERSONNEL EXCHANGES.
The Secretary, the Secretary of Energy, and the Director of the National Science Foundation, jointly, shall establish a program to foster the exchange of scientific and technical personnel among aca- demia, industry, and Federal laboratories. Such program shall in- clude both (1) federally supported exchanges and (2) efforts to stim- ulate exchanges without Federal funding. SEC. 21. ø15 U.S.C. 3713¿ AUTHORIZATION APPROPRIATIONS.
(a)(1) There is authorized to be appropriated to the Secretary for the purposes of carrying out sections 11(g) and 16 of this Act not to exceed $3,400,000 for the fiscal year ending September 30, 1988.
(2) Of the amount authorized under paragraph (1) of this sub- section, $2,400,000 is authorized only for the Office of Productivity, Technology, and Innovation; and $500,000 is authorized only for the patent licensing activities of the National Technical Informa- tion Service.
(b) In addition to the authorization of appropriations provided under subsection (a) of this section, there is authorized to be appro- priated to the Secretary for the purposes of carrying out section 6 of this Act not to exceed $500,000 for the fiscal year ending Sep- tember 30, 1988, $1,000,000 for the fiscal year ending September 30, 1989, and $1,500,000 for the fiscal year ending September 30, 1990.
(c) Such sums as may be appropriated under subsections (a) and (b) shall remain available until expended.
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31 Sec. 24STEVENSON–WYDLER ACT OF 1980
(d) To enable the National Science Foundation to carry out its powers and duties under this Act only such sums may be appro- priated as the Congress may authorize by law. SEC. 22. ø15 U.S.C. 3714¿ SPENDING AUTHORITY.
No payments shall be made or contracts shall be entered into pursuant to the provisions of this Act (other than sections 12, 13, and 14) except to such extent or in such amounts as are provided in advance in appropriation Acts. SEC. 23. ø15 U.S.C. 3715¿ USE OF PARTNERSHIP INTERMEDIARIES.
(a) AUTHORITY.—Subject to the approval of the Secretary or head of the affected department or agency, the Director of a Fed- eral laboratory, or in the case of a federally funded research and development center, the Federal employee who is the contract offi- cer, may—
(1) enter into a contract or memorandum of understanding with a partnership intermediary that provides for the partner- ship intermediary to perform services for the Federal labora- tory that increase the likelihood of success in the conduct of co- operative or joint activities of such Federal laboratory with small business firms, institutions of higher education as de- fined in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)), or educational institutions within the meaning of section 2194 of title 10, United States Code; and
(2) pay the Federal costs of such contract or memorandum of understanding out of funds available for the support of the technology transfer function pursuant to section 11(b) of this Act. (b) PARTNERSHIP PROGRESS REPORTS.—The Secretary shall in-
clude in each triennial report required under section 6(d) of this Act a discussion and evaluation of the activities carried out pursu- ant to this section during the period covered by the report.
(c) DEFINITION.—For purposes of this section, the term ‘‘part- nership intermediary’’ means an agency of a State or local govern- ment, or a nonprofit entity owned in whole or in part by, chartered by, funded in whole or in part by, or operated in whole or in part by or on behalf of a State or local government, that assists, coun- sels, advises, evaluates, or otherwise cooperates with small busi- ness firms, institutions of higher education as defined in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)), or educational institutions within the meaning of section 2194 of title 10, United States Code, that need or can make demonstrably pro- ductive use of technology-related assistance from a Federal labora- tory, including State programs receiving funds under cooperative agreements entered into under section 5121(b) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 2781 note). SEC. 24. ø15 U.S.C. 3719¿ PRIZE COMPETITIONS.
(a) DEFINITIONS.—In this section: (1) AGENCY.—The term ‘‘agency’’ means a Federal agency. (2) DIRECTOR.—The term ‘‘Director’’ means the Director of
the Office of Science and Technology Policy. (3) FEDERAL AGENCY.—The term ‘‘Federal agency’’ has the
meaning given under section 4, except that term shall not in-
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32Sec. 24 STEVENSON–WYDLER ACT OF 1980
clude any agency of the legislative branch of the Federal Gov- ernment.
(4) HEAD OF AN AGENCY.—The term ‘‘head of an agency’’ means the head of a Federal agency. (b) IN GENERAL.—Each head of an agency, or the heads of mul-
tiple agencies in cooperation, may carry out a program to award prizes competitively to stimulate innovation that has the potential to advance the mission of the respective agency.
(c) PRIZES.—For purposes of this section, a prize may be one or more of the following:
(1) A point solution prize that rewards and spurs the de- velopment of solutions for a particular, well-defined problem.
(2) An exposition prize that helps identify and promote a broad range of ideas and practices that may not otherwise at- tract attention, facilitating further development of the idea or practice by third parties.
(3) Participation prizes that create value during and after the competition by encouraging contestants to change their be- havior or develop new skills that may have beneficial effects during and after the competition.
(4) Such other types of prizes as each head of an agency considers appropriate to stimulate innovation that has the po- tential to advance the mission of the respective agency. (d) TOPICS.—In selecting topics for prize competitions, the head
of an agency shall consult widely both within and outside the Fed- eral Government, and may empanel advisory committees.
(e) ADVERTISING.—The head of an agency shall widely adver- tise each prize competition to encourage broad participation.
(f) REQUIREMENTS AND REGISTRATION.—For each prize competi- tion, the head of an agency shall publish a notice in the Federal Register announcing—
(1) the subject of the competition; (2) the rules for being eligible to participate in the com-
petition; (3) the process for participants to register for the competi-
tion; (4) the amount of the prize; and (5) the basis on which a winner will be selected.
(g) ELIGIBILITY.—To be eligible to win a prize under this sec- tion, an individual or entity—
(1) shall have registered to participate in the competition under any rules promulgated by the head of an agency under subsection (f);
(2) shall have complied with all the requirements under this section;
(3) in the case of a private entity, shall be incorporated in and maintain a primary place of business in the United States, and in the case of an individual, whether participating singly or in a group, shall be a citizen or permanent resident of the United States; and
(4) may not be a Federal entity or Federal employee acting within the scope of their employment. (h) CONSULTATION WITH FEDERAL EMPLOYEES.—An individual
or entity shall not be deemed ineligible under subsection (g) be-
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33 Sec. 24STEVENSON–WYDLER ACT OF 1980
cause the individual or entity used Federal facilities or consulted with Federal employees during a competition if the facilities and employees are made available to all individuals and entities par- ticipating in the competition on an equitable basis.
(i) LIABILITY.— (1) IN GENERAL.—
(A) DEFINITION.—In this paragraph, the term ‘‘related entity’’ means a contractor or subcontractor at any tier, and a supplier, user, customer, cooperating party, grantee, investigator, or detailee.
(B) LIABILITY.—Registered participants shall be re- quired to agree to assume any and all risks and waive claims against the Federal Government and its related en- tities, except in the case of willful misconduct, for any in- jury, death, damage, or loss of property, revenue, or prof- its, whether direct, indirect, or consequential, arising from their participation in a competition, whether the injury, death, damage, or loss arises through negligence or other- wise. (2) INSURANCE.—Participants shall be required to obtain li-
ability insurance or demonstrate financial responsibility, in amounts determined by the head of an agency, for claims by—
(A) a third party for death, bodily injury, or property damage, or loss resulting from an activity carried out in connection with participation in a competition, with the Federal Government named as an additional insured under the registered participant’s insurance policy and registered participants agreeing to indemnify the Federal Government against third party claims for damages aris- ing from or related to competition activities; and
(B) the Federal Government for damage or loss to Gov- ernment property resulting from such an activity. (3) EXCEPTION.—The head of an agency may not require a
participant to waive claims against the administering entity arising out of the unauthorized use or disclosure by the agency of the intellectual property, trade secrets, or confidential busi- ness information of the participant. (j) INTELLECTUAL PROPERTY.—
(1) PROHIBITION ON THE GOVERNMENT ACQUIRING INTEL- LECTUAL PROPERTY RIGHTS.—The Federal Government may not gain an interest in intellectual property developed by a partici- pant in a competition without the written consent of the partic- ipant.
(2) LICENSES.—The Federal Government may negotiate a license for the use of intellectual property developed by a par- ticipant for a competition. (k) JUDGES.—
(1) IN GENERAL.—For each competition, the head of an agency, either directly or through an agreement under sub- section (l), shall appoint one or more qualified judges to select the winner or winners of the prize competition on the basis de- scribed under subsection (f). Judges for each competition may include individuals from outside the agency, including from the private sector.
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34Sec. 24 STEVENSON–WYDLER ACT OF 1980
(2) RESTRICTIONS.—A judge may not— (A) have personal or financial interests in, or be an
employee, officer, director, or agent of any entity that is a registered participant in a competition; or
(B) have a familial or financial relationship with an individual who is a registered participant. (3) GUIDELINES.—The heads of agencies who carry out
competitions under this section shall develop guidelines to en- sure that the judges appointed for such competitions are fairly balanced and operate in a transparent manner.
(4) EXEMPTION FROM FACA.—The Federal Advisory Com- mittee Act (5 U.S.C. App.) shall not apply to any committee, board, commission, panel, task force, or similar entity, created solely for the purpose of judging prize competitions under this section. (l) ADMINISTERING THE COMPETITION.—The head of an agency
may enter into an agreement with a private, nonprofit entity to ad- minister a prize competition, subject to the provisions of this sec- tion.
(m) FUNDING.— (1) IN GENERAL.—Support for a prize competition under
this section, including financial support for the design and ad- ministration of a prize or funds for a monetary prize purse, may consist of Federal appropriated funds and funds provided by the private sector for such cash prizes. The head of an agen- cy may accept funds from other Federal agencies to support such competitions. The head of an agency may not give any special consideration to any private sector entity in return for a donation.
(2) AVAILABILITY OF FUNDS.—Notwithstanding any other provision of law, funds appropriated for prize awards under this section shall remain available until expended. No provi- sion in this section permits obligation or payment of funds in violation of section 1341 of title 31, United States Code.
(3) AMOUNT OF PRIZE.— (A) ANNOUNCEMENT.—No prize may be announced
under subsection (f) until all the funds needed to pay out the announced amount of the prize have been appropriated or committed in writing by a private source.
(B) INCREASE IN AMOUNT.—The head of an agency may increase the amount of a prize after an initial announce- ment is made under subsection (f) only if—
(i) notice of the increase is provided in the same manner as the initial notice of the prize; and
(ii) the funds needed to pay out the announced amount of the increase have been appropriated or committed in writing by a private source.
(4) LIMITATION ON AMOUNT.— (A) NOTICE TO CONGRESS.—No prize competition under
this section may offer a prize in an amount greater than $50,000,000 unless 30 days have elapsed after written no- tice has been transmitted to the Committee on Commerce, Science, and Transportation of the Senate and the Com-
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35 Sec. 24STEVENSON–WYDLER ACT OF 1980
mittee on Science and Technology of the House of Rep- resentatives.
(B) APPROVAL OF HEAD OF AGENCY.—No prize competi- tion under this section may result in the award of more than $1,000,000 in cash prizes without the approval of the head of an agency.
(n) GENERAL SERVICE ADMINISTRATION ASSISTANCE.—Not later than 180 days after the date of the enactment of the America COMPETES Reauthorization Act of 2010, the General Services Ad- ministration shall provide government wide services to share best practices and assist agencies in developing guidelines for issuing prize competitions. The General Services Administration shall de- velop a contract vehicle to provide agencies access to relevant prod- ucts and services, including technical assistance in structuring and conducting prize competitions to take maximum benefit of the mar- ketplace as they identify and pursue prize competitions to further the policy objectives of the Federal Government.
(o) COMPLIANCE WITH EXISTING LAW.— (1) IN GENERAL.—The Federal Government shall not, by
virtue of offering or providing a prize under this section, be re- sponsible for compliance by registered participants in a prize competition with Federal law, including licensing, export con- trol, and nonproliferation laws, and related regulations.
(2) OTHER PRIZE AUTHORITY.—Nothing in this section af- fects the prize authority authorized by any other provision of law. (p) ANNUAL REPORT.—
(1) IN GENERAL.—Not later than March 1 of each year, the Director shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science and Technology of the House of Representatives a re- port on the activities carried out during the preceding fiscal year under the authority in subsection (b).
(2) INFORMATION INCLUDED.—The report for a fiscal year under this subsection shall include, for each prize competition under subsection (b), the following:
(A) PROPOSED GOALS.—A description of the proposed goals of each prize competition.
(B) PREFERABLE METHOD.—An analysis of why the uti- lization of the authority in subsection (b) was the pref- erable method of achieving the goals described in subpara- graph (A) as opposed to other authorities available to the agency, such as contracts, grants, and cooperative agree- ments.
(C) AMOUNT OF CASH PRIZES.—The total amount of cash prizes awarded for each prize competition, including a description of amount of private funds contributed to the program, the sources of such funds, and the manner in which the amounts of cash prizes awarded and claimed were allocated among the accounts of the agency for re- cording as obligations and expenditures.
(D) SOLICITATIONS AND EVALUATION OF SUBMISSIONS.— The methods used for the solicitation and evaluation of submissions under each prize competition, together with
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36Sec. 25 STEVENSON–WYDLER ACT OF 1980
an assessment of the effectiveness of such methods and lessons learned for future prize competitions.
(E) RESOURCES.—A description of the resources, in- cluding personnel and funding, used in the execution of each prize competition together with a detailed description of the activities for which such resources were used and an accounting of how funding for execution was allocated among the accounts of the agency for recording as obliga- tions and expenditures.
(F) RESULTS.—A description of how each prize com- petition advanced the mission of the agency concerned.
SEC. 25. ø15 U.S.C. 3720¿ OFFICE OF INNOVATION AND ENTREPRE- NEURSHIP.
(a) IN GENERAL.—The Secretary shall establish an Office of In- novation and Entrepreneurship to foster innovation and the com- mercialization of new technologies, products, processes, and serv- ices with the goal of promoting productivity and economic growth in the United States.
(b) DUTIES.—The Office of Innovation and Entrepreneurship shall be responsible for—
(1) developing policies to accelerate innovation and ad- vance the commercialization of research and development, in- cluding federally funded research and development;
(2) identifying existing barriers to innovation and commer- cialization, including access to capital and other resources, and ways to overcome those barriers, particularly in States partici- pating in the Experimental Program to Stimulate Competitive Research;
(3) providing access to relevant data, research, and tech- nical assistance on innovation and commercialization;
(4) strengthening collaboration on and coordination of poli- cies relating to innovation and commercialization, including those focused on the needs of small businesses and rural com- munities, within the Department of Commerce, between the Department of Commerce and other Federal agencies, and be- tween the Department of Commerce and appropriate State government agencies and institutions, as appropriate; and
(5) any other duties as determined by the Secretary. (c) ADVISORY COMMITTEE.—The Secretary shall establish an
Advisory Council on Innovation and Entrepreneurship to provide advice to the Secretary on carrying out subsection (b). SEC. 26. ø15 U.S.C. 3721¿ FEDERAL LOAN GUARANTEES FOR INNOVA-
TIVE TECHNOLOGIES IN MANUFACTURING. (a) ESTABLISHMENT.—The Secretary shall establish a program
to provide loan guarantees for obligations to small- or medium- sized manufacturers for the use or production of innovative tech- nologies.
(b) ELIGIBLE PROJECTS.—A loan guarantee may be made under the program only for a project that re-equips, expands, or estab- lishes a manufacturing facility in the United States—
(1) to use an innovative technology or an innovative proc- ess in manufacturing;
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(2) to manufacture an innovative technology product or an integral component of such a product; or
(3) to commercialize an innovative product, process, or idea that was developed by research funded in whole or in part by a grant from the Federal government. (c) ELIGIBLE BORROWER.—A loan guarantee may be made
under the program only for a borrower who is a small- or medium- sized manufacturer, as determined by the Secretary under the cri- teria established pursuant to subsection (l).
(d) LIMITATION ON AMOUNT.—A loan guarantee shall not ex- ceed an amount equal to 80 percent of the obligation, as estimated at the time at which the loan guarantee is issued.
(e) LIMITATIONS ON LOAN GUARANTEE.—No loan guarantee shall be made unless the Secretary determines that—
(1) there is a reasonable prospect of repayment of the prin- cipal and interest on the obligation by the borrower;
(2) the amount of the obligation (when combined with amounts available to the borrower from other sources) is suffi- cient to carry out the project;
(3) the obligation is not subordinate to other financing; (4) the obligation bears interest at a rate that does not ex-
ceed a level that the Secretary determines appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks; and
(5) the term of an obligation requires full repayment over a period not to exceed the lesser of—
(A) 30 years; or (B) 90 percent of the projected useful life, as deter-
mined by the Secretary, of the physical asset to be fi- nanced by the obligation.
(f) DEFAULTS.— (1) PAYMENT BY SECRETARY.—
(A) IN GENERAL.—If a borrower defaults (as defined in regulations promulgated by the Secretary and specified in the loan guarantee) on the obligation, the holder of the loan guarantee shall have the right to demand payment of the unpaid amount from the Secretary.
(B) PAYMENT REQUIRED.—Within such period as may be specified in the loan guarantee or related agreements, the Secretary shall pay to the holder of the loan guarantee the unpaid interest on and unpaid principal of the obliga- tion as to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied.
(C) FORBEARANCE.—Nothing in this subsection pre- cludes any forbearance by the holder of the obligation for the benefit of the borrower which may be agreed upon by the parties to the obligation and approved by the Sec- retary. (2) SUBROGATION.—
(A) IN GENERAL.—If the Secretary makes a payment under paragraph (1), the Secretary shall be subrogated to the rights, as specified in the loan guarantee, of the recipi-
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38Sec. 26 STEVENSON–WYDLER ACT OF 1980
ent of the payment or related agreements including, if ap- propriate, the authority (notwithstanding any other provi- sion of law)—
(i) to complete, maintain, operate, lease, or other- wise dispose of any property acquired pursuant to such loan guarantee or related agreement; or
(ii) to permit the borrower, pursuant to an agree- ment with the Secretary, to continue to pursue the purposes of the project if the Secretary determines that such an agreement is in the public interest. (B) SUPERIORITY OF RIGHTS.—The rights of the Sec-
retary, with respect to any property acquired pursuant to a loan guarantee or related agreements, shall be superior to the rights of any other person with respect to the prop- erty. (3) NOTIFICATION.—If the borrower defaults on an obliga-
tion, the Secretary shall notify the Attorney General of the de- fault. (g) TERMS AND CONDITIONS.—A loan guarantee under this sec-
tion shall include such detailed terms and conditions as the Sec- retary determines appropriate—
(1) to protect the interests of the United States in the case of default; and
(2) to have available all the patents and technology nec- essary for any person selected, including the Secretary, to com- plete and operate the project. (h) CONSULTATION.—In establishing the terms and conditions
of a loan guarantee under this section, the Secretary shall consult with the Secretary of the Treasury.
(i) FEES.— (1) IN GENERAL.—The Secretary shall charge and collect
fees for loan guarantees in amounts the Secretary determines are sufficient to cover applicable administrative expenses.
(2) AVAILABILITY.—Fees collected under this subsection shall—
(A) be deposited by the Secretary into the Treasury of the United States; and
(B) remain available until expended, subject to such other conditions as are contained in annual appropriations Acts. (3) LIMITATION.—In charging and collecting fees under
paragraph (1), the Secretary shall take into consideration the amount of the obligation. (j) RECORDS.—
(1) IN GENERAL.—With respect to a loan guarantee under this section, the borrower, the lender, and any other appro- priate party shall keep such records and other pertinent docu- ments as the Secretary shall prescribe by regulation, including such records as the Secretary may require to facilitate an effec- tive audit.
(2) ACCESS.—The Secretary and the Comptroller General of the United States, or their duly authorized representatives, shall have access to records and other pertinent documents for the purpose of conducting an audit.
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(k) FULL FAITH AND CREDIT.—The full faith and credit of the United States is pledged to the payment of all loan guarantees issued under this section with respect to principal and interest.
(l) REGULATIONS.—The Secretary shall issue final regulations before making any loan guarantees under the program. The regula- tions shall include—
(1) criteria that the Secretary shall use to determine eligi- bility for loan guarantees under this section, including—
(A) whether a borrower is a small- or medium-sized manufacturer; and
(B) whether a borrower demonstrates that a market exists for the innovative technology product, or the inte- gral component of such a product, to be manufactured, as evidenced by written statements of interest from potential purchasers; (2) criteria that the Secretary shall use to determine the
amount of any fees charged under subsection (i), including cri- teria related to the amount of the obligation;
(3) policies and procedures for selecting and monitoring lenders and loan performance; and
(4) any other policies, procedures, or information necessary to implement this section. (m) AUDIT.—
(1) ANNUAL INDEPENDENT AUDITS.—The Secretary shall enter into an arrangement with an independent auditor for an- nual evaluations of the program under this section.
(2) COMPTROLLER GENERAL REVIEW.—The Comptroller General of the United States shall conduct a biennial review of the Secretary’s execution of the program under this section.
(3) REPORT.—The results of the independent audit under paragraph (1) and the Comptroller General’s review under paragraph (2) shall be provided directly to the Committee on Science and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate. (n) REPORT TO CONGRESS.—Concurrent with the submission to
Congress of the President’s annual budget request in each year after the date of enactment of the America COMPETES Reauthor- ization Act of 2010, the Secretary shall transmit to the Committee on Science and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Sen- ate a report containing a summary of all activities carried out under this section.
(o) COORDINATION AND NONDUPLICATION.—To the maximum extent practicable, the Secretary shall ensure that the activities carried out under this section are coordinated with, and do not du- plicate the efforts of, other loan guarantee programs within the Federal Government.
(p) MEP CENTERS.—The Secretary may use centers established under section 25 of the National Institute of Standards and Tech- nology Act (15 U.S.C. 278k) to provide information about the pro- gram established under this section and to conduct outreach to po- tential borrowers, as appropriate.
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(q) MINIMIZING RISK.—The Secretary shall promulgate regula- tions and policies to carry out this section in accordance with Office of Management and Budget Circular No. A–129, entitled ‘‘Policies for Federal Credit Programs and Non-Tax Receivables’’, as in effect on the date of enactment of the America COMPETES Reauthoriza- tion Act of 2010.
(r) SENSE OF CONGRESS.—It is the sense of Congress that no loan guarantee shall be made under this section unless the bor- rower agrees to use a federally-approved electronic employment eli- gibility verification system to verify the employment eligibility of—
(1) all persons hired during the contract term by the bor- rower 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 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
(2) INNOVATIVE PROCESS.—The term ‘‘innovative process’’ means a process that is significantly improved as compared to the process in general use in the commercial marketplace in the United States at the time the loan guarantee is issued.
(3) INNOVATIVE TECHNOLOGY.—The term ‘‘innovative tech- nology’’ 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 guar- antee is issued.
(4) LOAN GUARANTEE.—The term ‘‘loan guarantee’’ has the meaning given such term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a). The term includes a loan guarantee commitment (as defined in section 502 of such Act (2 U.S.C. 661a)).
(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 sec- tion. SEC. 27. ø15 U.S.C. 3722¿ REGIONAL INNOVATION PROGRAM.
(a) ESTABLISHMENT.—The Secretary shall establish a regional innovation program to encourage and support the development of regional innovation strategies, including regional innovation clus- ters and science and research parks.
(b) CLUSTER GRANTS.— (1) IN GENERAL.—As part of the program established under
subsection (a), the Secretary may award grants on a competi- tive basis to eligible recipients for activities relating to the for- mation and development of regional innovation clusters.
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(2) PERMISSIBLE ACTIVITIES.—Grants awarded under this subsection may be used for activities determined appropriate by the Secretary, including the following:
(A) Feasibility studies. (B) Planning activities. (C) Technical assistance. (D) Developing or strengthening communication and
collaboration between and among participants of a regional innovation cluster.
(E) Attracting additional participants to a regional in- novation cluster.
(F) Facilitating market development of products and services developed by a regional innovation cluster, includ- ing through demonstration, deployment, technology trans- fer, and commercialization activities.
(G) Developing relationships between a regional inno- vation cluster and entities or clusters in other regions.
(H) Interacting with the public and State and local governments to meet the goals of the cluster. (3) ELIGIBLE RECIPIENT DEFINED.—In this subsection, 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 institution of higher education, a public-private partnership, a science or research park, a Federal laboratory, or an economic development organization or similar entity; and
(ii) has an application that is supported by a State or a political subdivision of a State; or (E) a consortium of any of the entities described in
subparagraphs (A) through (D). (4) APPLICATION.—
(A) IN GENERAL.—An eligible recipient shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require.
(B) COMPONENTS.—The application shall include, at a minimum, a description of the regional innovation cluster supported by the proposed activity, including a description of—
(i) whether the regional innovation cluster is sup- ported by the private sector, State and local govern- ments, and other relevant stakeholders;
(ii) how the existing participants in the regional innovation cluster will encourage and solicit participa- tion by all types of entities that might benefit from participation, including newly formed entities and those rival existing participants;
(iii) the extent to which the regional innovation cluster is likely to stimulate innovation and have a
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positive impact on regional economic growth and de- velopment;
(iv) whether the participants in the regional inno- vation cluster have access to, or contribute to, a well- trained workforce;
(v) whether the participants in the regional inno- vation cluster are capable of attracting additional funds from non-Federal sources; and
(vi) the likelihood that the participants in the re- gional innovation cluster will be able to sustain activi- ties once grant funds under this subsection have been expended. (C) SPECIAL CONSIDERATION.—The Secretary shall give
special consideration to applications from regions that con- tain communities negatively impacted by trade. (5) SPECIAL CONSIDERATION.—The Secretary shall give spe-
cial consideration to an eligible recipient who agrees to collabo- rate with local workforce investment area boards.
(6) COST SHARE.—The Secretary may not provide more than 50 percent of the total cost of any activity funded under this subsection.
(7) USE AND APPLICATION OF RESEARCH AND INFORMATION PROGRAM.—To the maximum extent practicable, the Secretary shall ensure that activities funded under this subsection use and apply any relevant research, best practices, and metrics developed under the program established in subsection (c). (c) SCIENCE AND RESEARCH PARK DEVELOPMENT GRANTS.—
(1) IN GENERAL.—As part of the program established under subsection (a), the Secretary may award grants for the develop- ment of feasibility studies and plans for the construction of new science parks or the renovation 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.
(3) AWARD.— (A) COMPETITION REQUIRED.—The Secretary shall
award grants under this subsection pursuant to a full and open competition.
(B) GEOGRAPHIC DISPERSION.—In conducting a com- petitive process, the Secretary shall consider the need to avoid undue geographic concentration among any one cat- egory of States based on their predominant rural or urban character as indicated by population density.
(C) SELECTION CRITERIA.—The Secretary shall publish the criteria to be utilized in any competition for the selec- tion of recipients of grants under this subsection, which shall include requirements relating to the—
(i) effect the science park will have on regional economic growth and development;
(ii) number of jobs to be created at the science park and the surrounding regional community each year during its first 3 years;
(iii) funding to be required to construct, renovate or expand the science park during its first 3 years;
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43 Sec. 27STEVENSON–WYDLER ACT OF 1980
(iv) amount and type of financing and access to capital available to the applicant;
(v) types of businesses and research entities ex- pected in the science park and surrounding regional community;
(vi) letters of intent by businesses and research entities to locate in the science park;
(vii) capability to attract a well trained workforce to the science park;
(viii) the management of the science park during its first 5 years;
(ix) expected financial risks in the construction and operation of the science park and the risk mitiga- tion strategy;
(x) physical infrastructure available to the science park, including roads, utilities, and telecommuni- cations;
(xi) utilization of energy-efficient building tech- nology including nationally recognized green building design practices, renewable energy, cogeneration, and other methods that increase energy efficiency and con- servation;
(xii) consideration to the transformation of mili- tary bases affected by the base realignment and clo- sure process or the redevelopment of existing build- ings, structures, or brownfield sites that are aban- doned, idled, or underused into single or multiple building facilities for science and technology compa- nies and institutions;
(xiii) ability to collaborate with other science parks throughout the world;
(xiv) consideration of sustainable development practices and the quality of life at the science park; and
(xv) other such criteria as the Secretary shall pre- scribe.
(4) ALLOCATION CONSTRAINTS.—The Secretary may not al- locate less than one-third of the total grant funding allocated under this section for any fiscal year to grants under sub- section (b) or this subsection without written notification to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committees on Science and Technology and on Energy and Commerce. (d) LOAN GUARANTEES FOR SCIENCE PARK INFRASTRUCTURE.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary may guarantee up to 80 percent of the loan amount for projects for the construction or expansion, including renovation and modernization, 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) $300,000,000 with respect to all projects.
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(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 such other things of values as the Secretary shall deem necessary. Recipients of grants under subsection (c) are not eligible for a loan guar- antee during the period of the grant. To the extent that the Secretary determines it to be feasible, the Secretary may select recipients of guarantee assistance in accord with a competitive process that takes into account the factors set out in subsection (c)(3)(C) of this section.
(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 guaran- teed may not exceed the lesser of—
(i) 30 years; or (ii) 90 percent of the useful life of any physical
asset to be financed by the loan; (B) a loan guaranteed under this subsection may not
be subordinated to another debt contracted by the bor- rower or to any other claims against the borrowers in the case of default;
(C) a loan may not be guaranteed under this sub- section unless the Secretary determines that the lender is responsible and that provision is made for servicing the loan on reasonable terms and in a manner that adequately protects the financial interest of the United States;
(D) a loan may not be guaranteed under this sub- section if—
(i) the income from the loan is excluded from gross income for purposes of chapter 1 of the Internal Rev- enue Code of 1986; or
(ii) the guarantee provides significant collateral or security, as determined by the Secretary in coordina- tion with the Secretary of the Treasury, for other obli- gations 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 the guar-
antee; and (iii) absent fraud or material misrepresentation by
the holder, the guarantee is presumed to be valid, legal, and enforceable; (F) the Secretary may not extend credit assistance un-
less the Secretary has determined that there is a reason- able assurance of repayment; and
(G) 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).
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(5) PAYMENT OF LOSSES.— (A) IN GENERAL.—If, as a result of a default by a bor-
rower under a loan guaranteed under this subsection, after the holder has made such further collection efforts and in- stituted such enforcement proceedings as the Secretary may require, the Secretary determines that the holder has suffered a loss, the Secretary shall pay to the holder the percentage of the 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 pay- ment. 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 de- fined in section 502(5) of the Federal Credit Reform Act of 1990) is available. (6) EVALUATION OF CREDIT RISK.—
(A) The Secretary shall periodically assess the credit risk of new and existing direct loans or guaranteed loans.
(B) Not later than 2 years after the date of the enact- ment of the America COMPETES Reauthorization Act of 2010, the Comptroller General of the United States shall—
(i) conduct a review of the subsidy estimates for the loan guarantees under this section; and
(ii) submit to Congress a report on the review con- ducted under this paragraph.
(7) TERMINATION.—A loan may not be guaranteed under this section after September 30, 2013.
(8) AUTHORIZATION OF APPROPRIATIONS.—There are author- ized to be appropriated $7,000,000 for each of fiscal years 2011 through 2013 for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of guaranteeing $300,000,000 in loans under this section, such sums to remain available until expended. (e) REGIONAL INNOVATION RESEARCH AND INFORMATION PRO-
GRAM.— (1) IN GENERAL.—As part of the program established under
subsection (a), the Secretary shall establish a regional innova- tion research and information program—
(A) to gather, analyze, and disseminate information on best practices for regional innovation strategies (including regional innovation clusters), including information relat- ing to how innovation, productivity, and economic develop- ment can be maximized through such strategies;
(B) to provide technical assistance, including through the development of technical assistance guides, for the de-
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velopment and implementation of regional innovation strategies (including regional innovation clusters);
(C) to support the development of relevant metrics and measurement standards to evaluate regional innovation strategies (including regional innovation clusters), includ- ing the extent to which such strategies stimulate innova- tion, productivity, and economic development; and
(D) to collect and make available data on regional in- novation cluster activity in the United States, including data on—
(i) the size, specialization, and competitiveness of regional innovation clusters;
(ii) the regional domestic product contribution, total jobs and earnings by key occupations, establish- ment size, nature of specialization, patents, Federal research and development spending, and other rel- evant information for regional innovation clusters; and
(iii) supply chain product and service flows within and between regional innovation clusters.
(2) RESEARCH GRANTS.—The Secretary may award re- search grants on a competitive basis to support and further the goals of the program established under this subsection.
(3) DISSEMINATION OF INFORMATION.—Data and analysis compiled by the Secretary under the program established in this subsection shall be made available to other Federal agen- cies, 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 under subsection (b) or (c) and any loan guarantee under subsection (d) into the program established under this subsection. (f) INTERAGENCY COORDINATION.—
(1) IN GENERAL.—To the maximum extent practicable, the Secretary shall ensure that the activities carried out under this section are coordinated with, and do not duplicate the efforts of, other programs at the Department of Commerce or other Federal agencies.
(2) COLLABORATION.— (A) IN GENERAL.—The Secretary shall explore and pur-
sue collaboration with other Federal agencies, including through multiagency funding opportunities, on regional in- novation strategies.
(B) SMALL BUSINESSES.—The Secretary shall ensure that such collaboration with Federal agencies prioritizes the needs and challenges of small businesses.
(g) EVALUATION.— (1) IN GENERAL.—Not later than 3 years after the date of
enactment of the America COMPETES Reauthorization Act of 2010, the Secretary shall enter into a contract with an inde- pendent entity, such as the National Academy of Sciences, to conduct an evaluation of the program established under sub- section (a).
(2) REQUIREMENTS.—The evaluation shall include— (A) whether the program is achieving its goals;
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47 Sec. 27STEVENSON–WYDLER ACT OF 1980
(B) any recommendations for how the program may be improved; and
(C) a recommendation as to whether the program should be continued or terminated.
(h) DEFINITIONS.—In this section: (1) REGIONAL INNOVATION CLUSTER.—The term ‘‘regional
innovation cluster’’ means a geographically bounded network of similar, synergistic, or complementary entities that—
(A) are engaged in or with a particular industry sector; (B) have active channels for business transactions and
communication; (C) share specialized infrastructure, labor markets,
and services; and (D) leverage the region’s unique competitive strengths
to stimulate innovation and create jobs. (2) SCIENCE PARK.—The term ‘‘Science park’’ means a prop-
erty-based venture, which has— (A) master-planned property and buildings designed
primarily for private-public research and development ac- tivities, high technology and science-based companies, and research and development support services;
(B) a contractual or operational relationship with one or more science- or research-related institution of higher education or governmental or non-profit research labora- tories;
(C) a primary mission to promote research and devel- opment through industry partnerships, assisting in the growth of new ventures and promoting innovation-driven economic development;
(D) a role in facilitating the transfer of technology and business skills between researchers and industry teams; and
(E) a role in promoting technology-led economic devel- opment for the community or region in which the science park is located.A science park may be owned by a govern- mental or not-for-profit entity, but it may enter into part- nerships or joint ventures with for-profit entities for devel- opment or management of specific components of the park. (3) STATE.—The term ‘‘State’’ means one of the several
States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Com- monwealth of the Northern Mariana Islands, or any other ter- ritory or possession of the United States. (i) AUTHORIZATION OF APPROPRIATIONS.—Except as provided in
subsection (d)(8), there are authorized to be appropriated $100,000,000 for each of fiscal years 2011 through 2013 to carry out this section (other than for loan guarantees under subsection (d)).
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