[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1020 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1020

       To make the United States competitive in a global economy.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 12, 2005

Mr. Coleman (for himself and Mr. Pryor) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
       To make the United States competitive in a global economy.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Collaborative 
Opportunities to Mobilize and Promote Education, Technology, and 
Enterprise Act of 2005'' or the ``COMPETE Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                        TITLE I--TAX INCENTIVES

                      Subtitle A--Research credit

Sec. 101. Extension of research credit.
Sec. 102. Increase in rates of alternative incremental credit.
Sec. 103. Alternative simplified credit for qualified research 
                            expenses.
                         Subtitle B--Education

Sec. 111. Credit for information and communications technology 
                            education and training program expenses.
Sec. 112. Eligible educational institution.
Sec. 113. Alternative percentage limitation for corporate charitable 
                            contributions to the mathematics and 
                            science partnership program.
                     TITLE II--EDUCATION PROVISIONS

Sec. 201. Regional training and research centers.
Sec. 202. Math and science partnership bonus grants.
Sec. 203. Matching funds program to promote American competitiveness 
                            through graduate education.
    TITLE III--UNITED STATES PATENT AND TRADEMARK FEE MODERNIZATION

Sec. 301. Patent and Trademark Office funding.

                        TITLE I--TAX INCENTIVES

                      Subtitle A--Research Credit

SEC. 101. EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Subsection (h) of section 41 of the Internal 
Revenue Code of 1986 (relating to termination) is amended by striking 
``2005'' and inserting ``2007''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) of 
such Code is amended by striking ``2005'' and inserting ``2007''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 102. INCREASE IN RATES OF ALTERNATIVE INCREMENTAL CREDIT.

    (a) In General.--Subparagraph (A) of section 41(c)(4) of the 
Internal Revenue Code of 1986 (relating to election of alternative 
incremental credit) is amended--
            (1) by striking ``2.65 percent'' and inserting ``3 
        percent'';
            (2) by striking ``3.2 percent'' and inserting ``4 
        percent''; and
            (3) by striking ``3.75 percent'' and inserting ``5 
        percent''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 103. ALTERNATIVE SIMPLIFIED CREDIT FOR QUALIFIED RESEARCH 
              EXPENSES.

    (a) In General.--Subsection (c) of section 41 of the Internal 
Revenue Code of 1986 (relating to base amount) is amended by 
redesignating paragraphs (5) and (6) as paragraphs (6) and (7), 
respectively, and by inserting after paragraph (4) the following new 
paragraph:
            ``(5) Election of alternative simplified credit.--
                    ``(A) In general.--At the election of the taxpayer, 
                the credit determined under subsection (a)(1) shall be 
                equal to 12 percent of so much of the qualified 
                research expenses for the taxable year as exceeds 50 
                percent of the average qualified research expenses for 
                the 3 taxable years preceding the taxable year for 
                which the credit is being determined.
                    ``(B) Special rule in case of no qualified research 
                expenses in any of 3 preceding taxable years.--
                            ``(i) Taxpayers to which subparagraph 
                        applies.--The credit under this paragraph shall 
                        be determined under this subparagraph if the 
                        taxpayer has no qualified research expenses in 
                        any 1 of the 3 taxable years preceding the 
                        taxable year for which the credit is being 
                        determined.
                            ``(ii) Credit rate.--The credit determined 
                        under this subparagraph shall be equal to 6 
                        percent of the qualified research expenses for 
                        the taxable year.
                    ``(C) Election.--An election under this paragraph 
                shall apply to the taxable year for which made and all 
                succeeding taxable years unless revoked with the 
                consent of the Secretary. An election under this 
                paragraph may not be made for any taxable year to which 
                an election under paragraph (4) applies.''.
    (b) Coordination With Election of Alternative Incremental Credit.--
            (1) In general.--Section 41(c)(4)(B) of the Internal 
        Revenue Code of 1986 (relating to election) is amended by 
        adding at the end the following: ``An election under this 
        paragraph may not be made for any taxable year to which an 
        election under paragraph (5) applies.''.
            (2) Transition rule.--In the case of an election under 
        section 41(c)(4) of the Internal Revenue Code of 1986 which 
        applies to the taxable year which includes the date of the 
        enactment of this Act, such election shall be treated as 
        revoked with the consent of the Secretary of the Treasury if 
        the taxpayer makes an election under section 41(c)(5) of such 
        Code (as added by subsection (a)) for such year.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

                         Subtitle B--Education

SEC. 111. CREDIT FOR INFORMATION AND COMMUNICATIONS TECHNOLOGY 
              EDUCATION AND TRAINING PROGRAM EXPENSES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following:

``SEC. 30B. INFORMATION AND COMMUNICATIONS TECHNOLOGY EDUCATION AND 
              TRAINING PROGRAM EXPENSES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 50 percent of information and communications technology 
education and training program expenses paid or incurred by the 
taxpayer for the benefit of--
            ``(1) in the case of a taxpayer engaged in a trade or 
        business, an employee of the taxpayer, or
            ``(2) in the case of a taxpayer who is an individual not so 
        engaged, such individual.
    ``(b) Limitations.--
            ``(1) Employers.--In the case of any taxpayer described in 
        subsection (a)(1), the amount of expenses which may be taken 
        into account under subsection (a) for the taxable year shall 
        not exceed the greater of--
                    ``(A) the excess of--
                            ``(i) the sum of--
                                    ``(I) $10,000 multiplied by the 
                                number of qualified individuals who are 
                                employees and with respect to whom the 
                                taxpayer has paid or incurred 
                                information and communications 
                                technology education and training 
                                expenses, plus
                                    ``(II) $8,000 multiplied by the 
                                number of all other employees with 
                                respect to whom the taxpayer has paid 
                                or incurred such expenses, over
                            ``(ii) the average amount of such expenses 
                        paid or incurred by the taxpayer with respect 
                        to all employees for the 3 preceding taxable 
                        years, or
                    ``(B) the sum of--
                            ``(i) $4,000 multiplied by the number of 
                        qualified individuals who are employees and 
                        with respect to whom the taxpayer has paid or 
                        incurred such expenses, plus
                            ``(ii) $2,500 multiplied by the number of 
                        all other employees with respect to whom the 
                        taxpayer has paid or incurred such expenses.
            ``(2) Individuals.--The amount of expenses with respect to 
        any individual described in subsection (a)(2) which may be 
        taken into account under subsection (a) for the taxable year 
        shall not exceed $2,500 ($4,000 in the case of a qualified 
        individual).
            ``(3) Coordination of credits.--
                    ``(A) In general.--The credit under subsection 
                (a)(1) allowed to an employer with respect to any 
                employee shall be reduced by the coordination exclusion 
                amount.
                    ``(B) Portion of credit allowable.--For purposes of 
                subparagraph (A), the coordination exclusion amount is 
                an amount which bears the same ratio to the applicable 
                limitation as--
                            ``(i) the amount (if any) of the limitation 
                        applicable to such employee under subsection 
                        (b)(2) which such employee does not assign to 
                        such employer, bears to
                            ``(ii) $2,500 ($4,000 in the case of an 
                        employee who is a qualified individual).
                    ``(C) Applicable limitation.--For purposes of 
                subparagraph (B), the term `applicable limitation' 
                means the amount under paragraph (2) with respect to 
                such employee which is used by such employer to 
                calculate the limitation under such paragraph.
            ``(4) Qualified individual.--The term `qualified 
        individual' means an individual--
                    ``(A) with respect to whom all information and 
                communications technology education and training 
                program expenses are paid or incurred in connection 
                with a program operated--
                            ``(i) in an empowerment zone or enterprise 
                        community designated under part I of subchapter 
                        U or a renewal community designated under part 
                        I of subchapter X,
                            ``(ii) in a school district in which at 
                        least 50 percent of the students attending 
                        schools in such district are eligible for free 
                        or reduced-cost lunches under the school lunch 
                        program established under the Richard B. 
                        Russell National School Lunch Act,
                            ``(iii) in an area designated as a disaster 
                        area by the Secretary of Agriculture or by the 
                        President under the Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act in the 
                        taxable year or any of the 4 preceding taxable 
                        years,
                            ``(iv) in a rural enterprise community 
                        designated under section 766 of the 
                        Agriculture, Rural Development, Food and Drug 
                        Administration, and Related Agencies 
                        Appropriations Act, 1999,
                            ``(v) in an area designated by the 
                        Secretary of Agriculture as a Rural Economic 
                        Area Partnership Zone,
                            ``(vi) in an area over which an Indian 
                        tribal government (as defined in section 
                        7701(a)(40)) has jurisdiction, or
                            ``(vii) by an employer who has 200 or fewer 
                        employees for each business day in each of 20 
                        or more calendar weeks in the current or 
                        preceding calendar year,
                    ``(B) with a disability, or
                    ``(C) who is receiving a benefit under chapter 2 of 
                title II of the Trade Act of 1974.
    ``(c) Information Technology Education and Training Program 
Expenses.--For purposes of this section--
            ``(1) In general.--The term `information technology 
        education and training program expenses' means expenses paid or 
        incurred by reason of the participation of the taxpayer (or any 
        employee of the taxpayer) in any information and communications 
        technology education and training program. Such expenses shall 
        include expenses paid in connection with--
                    ``(A) course work,
                    ``(B) certification testing,
                    ``(C) programs carried out under the Act of August 
                16, 1937 (50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
                seq.), which are registered by the Department of Labor, 
                and
                    ``(D) other expenses that are essential to 
                assessing skill acquisition.
            ``(2) Information technology education and training 
        program.--The term `information technology education and 
        training program' means a training program in information and 
        communications technology workplace disciplines or which is 
        provided in the United States by an accredited college, 
        university, private career school, postsecondary educational 
        institution, a commercial information technology provider, or 
        an employer-owned information technology training organization.
            ``(3) Commercial information technology training 
        provider.--The term `commercial information technology training 
        provider' means a private sector organization providing an 
        information and communications technology education and 
        training program.
            ``(4) Employer-owned information technology training 
        organization.--The term `employer-owned information technology 
        training organization' means a private sector organization that 
        provides information technology training to its employees using 
        internal training development and delivery personnel. The 
        training programs must use industry-recognized training 
        disciplines and evaluation methods, comparable to institutional 
        and commercial training providers.
    ``(d) Denial of Double Benefit.--
            ``(1) Disallowance of other credits and deductions.--No 
        deduction or credit shall be allowed under any other provision 
        of this chapter for expenses taken into account in determining 
        the credit under this section.
            ``(2) Reduction for hope and lifetime learning credits.--
        The amount taken into account under subsection (a) shall be 
        reduced by the information technology education and training 
        program expenses taken into account in determining the credits 
        under section 25A.
    ``(e) Certain Rules Made Applicable.--For purposes of this section, 
rules similar to the rules of section 45A(e)(2) and subsections (c), 
(d), and (e) of section 52 shall apply.
    ``(f) Application With Other Credits.--The credit allowed by 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the sum of the regular tax liability (as defined by 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under subpart A and 
        section 27 for the taxable year.
    ``(g) Inflation Adjustments.--In the case of a taxable year 
beginning after 2004, each of the dollar amounts under paragraphs (1), 
(2), and (3) of subsection (b) shall be increased by an amount equal 
to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) of the calendar year in which the taxable year 
        begins, determined by substituting `calendar year 2003' for 
        `calendar year 1992' in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence is not a 
multiple of $100, such amount shall be rounded to the next lowest 
multiple of $100.''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following:

``Sec. 30B. Information and communications technology education and 
                            training program expenses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2004.

SEC. 112. ELIGIBLE EDUCATIONAL INSTITUTION.

    (a) In General.--Section 25A(f)(2) of the Internal Revenue Code of 
1986 (relating to eligible educational institution) is amended to read 
as follows:
            ``(2) Eligible educational institution.--The term `eligible 
        educational institution' means--
                    ``(A) an institution--
                            ``(i) which is described in section 101(b) 
                        or 102(a) of the Higher Education Act of 1965, 
                        and
                            ``(ii) which is eligible to participate in 
                        a program under title IV of such Act, or
                    ``(B) a commercial information and communications 
                technology training provider (as defined in section 
                30B(c)(3)).''.
    (b) Conforming Amendment.--The second sentence of section 221(d)(2) 
of the Internal Revenue Code of 1986 is amended by striking ``section 
25A(f)(2)'' and inserting ``section 25A(f)(2)(A)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 113. ALTERNATIVE PERCENTAGE LIMITATION FOR CORPORATE CHARITABLE 
              CONTRIBUTIONS TO THE MATHEMATICS AND SCIENCE PARTNERSHIP 
              PROGRAM.

    (a) In General.--Section 170(b) of the Internal Revenue Code of 
1986 (related to percentage limitations) is amended by adding at the 
end the following new paragraph:
            ``(3) Special rule for corporate contributions to the 
        mathematics and science partnership program.--
                    ``(A) In general.--In the case of a corporation 
                which makes an eligible mathematics and science 
                contribution--
                            ``(i) the limitation under paragraph (2) 
                        shall apply separately with respect to all such 
                        contributions and all other charitable 
                        contributions, and
                            ``(ii) paragraph (2) shall be applied with 
                        respect to all eligible mathematics and science 
                        contributions by substituting `15 percent' for 
                        `10 percent'.
                    ``(B) Eligible mathematics and science 
                contribution.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `eligible mathematics and 
                        science contribution' means a charitable 
                        contribution (other than a contribution of used 
                        equipment) to a qualified partnership for the 
                        purpose of an activity described in section 
                        2202(c) of the Elementary and Secondary 
                        Education Act of 1965.
                            ``(ii) Qualified partnership.--The term 
                        `qualified partnership' means an eligible 
                        partnership (within the meaning of section 
                        2201(b)(1) of the Elementary and Secondary 
                        Education Act of 1965), but only to the extent 
                        that such partnership does not include a person 
                        other than a person described in paragraph 
                        (1)(A).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after the date of the enactment of this Act.

                     TITLE II--EDUCATION PROVISIONS

SEC. 201. REGIONAL TRAINING AND RESEARCH CENTERS.

    (a) Centers Established.--From amounts appropriated under 
subsection (f), the Director of the National Science Foundation shall 
award grants, on a competitive basis, to eligible entities to enable 
the eligible entities to establish 10 regional training and research 
centers to help maintain the Nation's workforce and education 
investment and infrastructure in the sciences, technology, engineering, 
and mathematics.
    (b) Eligible Entity Defined.--In this section the term ``eligible 
entity'' means a partnership between an institution of higher education 
and 1 or more of the following entities:
            (1) A research organization.
            (2) An organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 that--
                    (A) is exempt from taxation under section 501(a) of 
                such Code; and
                    (B) has expertise in the sciences, technology, 
                engineering, or mathematics.
            (3) A trade or business.
    (c) Location.--The Director of the National Science Foundation 
shall award a grant for the establishment of 1 regional training and 
research center in each of the 10 geographic regions of the United 
States that is served by a regional educational laboratory under 
section 174 of the Education Sciences Reform Act of 2002 (20 U.S.C. 
9564).
    (d) Designation.--Each regional training and research center 
established under this section shall be known as a ``Making America 
Competitive Center'' (MAC Center).
    (e) Use of Funds.--
            (1) In general.--Each eligible entity receiving a grant 
        under this section shall use the grant funds to establish a 
        regional training and research center that--
                    (A) provides training, technical assistance, and 
                professional development in the sciences, technology, 
                engineering, and mathematics, to or for States, local 
                educational agencies, qualified teachers, and schools, 
                in the region served by the regional training and 
                research center;
                    (B)(i) develops and funds joint cooperative 
                programs, for qualified teachers and students, with a 
                trade or business related to the sciences, technology, 
                engineering, or mathematics; and
                    (ii) develops instructional materials and teaching 
                methods in the areas of the sciences, technology, 
                engineering, and mathematics for use in primary and 
                secondary schools in the region served by the center; 
                and
                    (C) builds networks among the sciences, technology, 
                engineering, and mathematics resources within the 10 
                regions and nationally.
            (2) Qualified teacher.--For purposes of paragraph (1)(B), 
        the term ``qualified teacher'' means any individual who--
                    (A) teaches one or more courses in grades 4 through 
                12 primarily in--
                            (i) science;
                            (ii) computer science;
                            (iii) occupational preparation with respect 
                        to vocational and technical occupations;
                            (iv) engineering; or
                            (v) mathematics; or
                    (B)(i) received a baccalaureate or similar degree 
                with a major or a minor in the sciences, technology, 
                engineering, or mathematics from a college, university, 
                vocational school, or other postsecondary institution 
                eligible to participate in a student aid program 
                administered by the Department of Education; and
                    (ii) is a teacher who is highly qualified (within 
                the meaning of section 9101(23) of the Elementary and 
                Secondary Education Act of 1965).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $200,000,000 for fiscal year 2006;
            (2) $210,000,000 for fiscal year 2007;
            (3) $230,000,000 for fiscal year 2008;
            (4) $270,000,000 for fiscal year 2009; and
            (5) $350,000,000 for fiscal year 2010.

SEC. 202. MATH AND SCIENCE PARTNERSHIP BONUS GRANTS.

    Part B of title II of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6661 et seq.) is amended by adding at the end the 
following:

``SEC. 2204. MATH AND SCIENCE PARTNERSHIP BONUS GRANTS.

    ``(a) In General.--From amounts appropriated under subsection (d), 
the Secretary shall award a grant--
            ``(1) for each of the school years 2005-2006 through 2014-
        2015, to each of the 5 elementary schools and each of the 5 
        secondary schools in a State whose students demonstrate the 
        most improvement in mathematics, as measured by the improvement 
        in the students' average score on the State's assessments in 
        mathematics from the school year preceding the school year for 
        which the grant is awarded to the school year for which the 
        grant is awarded; and
            ``(2) for each of the school years 2009-2010 through 2014-
        2015, to each of the 5 elementary schools and each of the 5 
        secondary schools in a State whose students demonstrate the 
        most improvement in science, as measured by the improvement in 
        the students' average score on the State's assessments in 
        science from the school year preceding the school year for 
        which the grant is awarded to the school year for which the 
        grant is awarded.
    ``(b) Grant Amount.--The amount of each grant awarded under this 
section shall be $500,000.
    ``(c) Applicability.--Sections 2201, 2202, and 2203 shall not apply 
to this section.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $130,000,000 for each of fiscal 
years 2006 through 2009, and $260,000,000 for each of fiscal years 2010 
through 2015.''.

SEC. 203. MATCHING FUNDS PROGRAM TO PROMOTE AMERICAN COMPETITIVENESS 
              THROUGH GRADUATE EDUCATION.

    (a) Purpose.--The purpose of this section is to promote America's 
economic competitiveness and job creation by--
            (1) assisting graduate students studying the sciences, 
        technology, engineering, and mathematics;
            (2) advancing education in the sciences, technology, 
        engineering, and mathematics;
            (3) stimulating greater links between private industry and 
        graduate education; and
            (4) enabling the Office of Science of the Department of 
        Energy to establish a matching funds program for eligible 
        institutions of higher education.
    (b) Definitions.--In this section:
            (1) Eligible institution of higher education.--The term 
        ``eligible institution of higher education'' means an 
        institution of higher education, as defined in section 101(a) 
        of the Higher Education Act of 1965 (20 U.S.C. 1001), that--
                    (A) offers an established program of post-
                baccalaureate study leading to a graduate degree in the 
                sciences, technology, engineering, or mathematics; and
                    (B) enters into a written agreement with the 
                Director pursuant to subsection (e) to carry out the 
                authorized activities described in the application 
                submitted under subsection (d).
            (2) Director.--The term ``Director'' means the Director of 
        the Office of Science of the Department of Energy.
    (c) Grants.--
            (1) Grants authorized.--The Director is authorized to award 
        grants, on a competitive basis, to eligible institutions of 
        higher education to enable the eligible institutions of higher 
        education to carry out authorized activities described in 
        subsection (e).
            (2) Matching funds required.--In order to receive a grant 
        under this subsection an eligible institution of higher 
        education shall agree to provide matching funds, toward the 
        cost of the authorized activities to be assisted under the 
        grant, in an amount equal to 25 percent of the funds received 
        under the grant.
            (3) Award considerations.--In awarding grants under this 
        subsection the Director shall take into consideration--
                    (A) the demonstrated commitment of the eligible 
                institution of higher education to providing matching 
                funds (including tuition remission, tuition waivers, 
                and other types of institutional support) toward the 
                cost of the authorized activities to be assisted under 
                the grant;
                    (B) the demonstrated capacity of the eligible 
                institution of higher education to raise matching funds 
                from private sources;
                    (C) the demonstrated ability of the eligible 
                institution of higher education to work with private 
                corporations and organizations to promote economic 
                competitiveness and job creation;
                    (D) the demonstrated ability of the eligible 
                institution of higher education to increase the number 
                of the eligible institution of higher education's 
                graduates in the sciences, technology, engineering, or 
                mathematics with the interdisciplinary background and 
                the technical, professional and personal skills needed 
                to contribute to American competitiveness and job 
                creation in the future;
                    (E) the potential for the grant assistance to 
                increase the number of graduates in the sciences, 
                technology, engineering, or mathematics at the eligible 
                institution of higher education; and
                    (F) the demonstrated track record of the eligible 
                institution of higher education in outreach and 
                mentoring activities that have the expressed purpose of 
                recruiting and retaining women, recognized minorities, 
                and individuals with disabilities in the sciences, 
                technology, engineering, or mathematics.
            (4) Amount.--The Director shall award each grant under this 
        subsection in an amount that is not more than $1,000,000 for 
        each fiscal year.
            (5) Equitable geographic distribution.--In awarding grants 
        under this subsection the Director shall ensure--
                    (A) an equitable geographic distribution of the 
                grants; and
                    (B) an equitable distribution among public and 
                independent eligible institutions of higher education.
    (d) Applications.--Each eligible institution of higher education 
desiring a grant under this section shall submit an application to the 
Director at such time, in such manner, and accompanied by such 
information and assurances as the Director may require. Each such 
application shall describe--
            (1) the authorized activities for which assistance is 
        sought;
            (2) the source and amount of the matching funds to be 
        provided; and
            (3) the amount of funds raised by the eligible institution 
        of higher education from private sources that will be allocated 
        and spent to carry out the authorized activities described in 
        subsection (e).
    (e) Authorized Activities; Agreement.--Each eligible institution of 
higher education desiring a grant under this section shall enter into a 
written agreement with the Director under which the eligible 
institution of higher education agrees to use all of the grant funds--
            (1) to provide stipends or other financial assistance (such 
        as tuition assistance and related expenses) for students who 
        are enrolled in graduate programs in the sciences, technology, 
        engineering, or mathematics at the eligible institution of 
        higher education; and
            (2) to support outreach and mentoring activities to 
        increase the participation of underrepresented groups in the 
        sciences, technology, engineering, or mathematics at all or any 
        level of education, including elementary, secondary and post-
        secondary education.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $50,000,000 for fiscal year 2006;
            (2) $60,000,000 for fiscal year 2007;
            (3) $70,000,000 for fiscal year 2008;
            (4) $80,000,000 for fiscal year 2009; and
            (5) $90,000,000 for fiscal year 2010.

    TITLE III--UNITED STATES PATENT AND TRADEMARK FEE MODERNIZATION

SEC. 301. PATENT AND TRADEMARK OFFICE FUNDING.

    (a) Amendment.--Section 42(c) of title 35, United States Code, is 
amended--
            (1) by striking ``(c)'' and inserting ``(c)(1)''; and
            (2) by adding at the end the following:
            ``(2) If estimated fee collections by the Patent and 
        Trademark Office for a fiscal year exceed the amount 
        appropriated to the Office for that fiscal year, the Director 
        shall reduce fees established under section 41 of this title 
        and section 31(a) of the Act of July 5, 1946 (commonly referred 
        to as the `Trademark Act of 1946') for that fiscal year or the 
        remainder of that fiscal year so that estimated collections for 
        that fiscal year are equal to the amount appropriated to the 
        Office for that fiscal year. Such reductions shall take effect 
        on the later of October 1, of that fiscal year or 2 months 
        after the date of enactment of the Act making the 
        appropriation, and shall not be retroactive.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to fiscal year 2006 and each fiscal year thereafter.
                                 <all>