[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1371 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1371

 To establish a program to award innovation prizes to individuals and 
 entities for researching and developing innovative technologies, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 11, 2007

   Mr. Pryor introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To establish a program to award innovation prizes to individuals and 
 entities for researching and developing innovative technologies, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reward Innovation in America Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administering entity.--The term ``administering 
        entity'' means an entity with which the Secretary enters into 
        an agreement under section 4(e).
            (2) Competition.--The term ``competition'' means a 
        competition for an innovation prize under the program described 
        in section 4(a).
            (3) Innovation prize.--The term ``innovation prize'' means 
        a prize awarded to a participant who wins a competition.
            (4) Participant.--The term ``participant'' means an 
        individual or entity that participates in a competition.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.

SEC. 3. NATIONAL INNOVATION PRIZES BOARD.

    (a) Establishment.--There is established in the Department of 
Commerce a National Innovation Prizes Board (referred to in this Act as 
the ``Board'').
    (b) Purposes.--The purposes of the Board are as follows:
            (1) To develop and administer the program described in 
        section 4(a).
            (2) To select the research topics for competitions.
            (3) To establish the rules of the competitions and the 
        criteria for winning innovation prizes.
            (4) To determine the amount of the innovation prize for 
        each competition.
            (5) To certify the winners of the competitions.
            (6) To determine the annual funding requirement for each 
        competition.
    (c) Membership.--
            (1) Number of members.--The Secretary shall determine the 
        number of members of the Board.
            (2) Chair.--The Secretary, or a designee of the Secretary, 
        shall serve as Chair of the Board.
            (3) Members.--
                    (A) From federal agencies.--The Secretary may 
                appoint the heads of Federal agencies to serve as full 
                members of the Board on a permanent basis.
                    (B) Non-federal members.--The Secretary may appoint 
                to the Board individuals who are not officers or 
                employees of the Federal Government and who have 
                national reputations in the private sector, policy 
                sector, or academic institutions.
            (4) Terms.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a member of the Board shall serve for a term of 3 
                years.
                    (B) Initial terms.--The initial terms of members 
                described in paragraph (3)(B) shall be staggered.
            (5) Vacancies.--A member of the Board described in 
        paragraph (3)(B) appointed to fill a vacancy occurring other 
        than by the expiration of a term shall be appointed for the 
        remainder of the term of the former member.
            (6) Status.--Except as provided in paragraph (7), a member 
        described in paragraph (3)(B) shall not be deemed to be an 
        officer or employee of the United States for purposes of the 
        laws or regulations of the United States.
            (7) Travel expenses.--A member described in paragraph 
        (3)(B) shall be allowed travel expenses, including per diem in 
        lieu of subsistence, at rates authorized for employees of the 
        Federal Government under subchapter I of chapter 57 of title 5, 
        United States Code.

SEC. 4. INNOVATION PRIZES PROGRAM.

    (a) In General.--The program described in this subsection means a 
program of competitions to award innovation prizes to eligible 
individuals and entities to advance the research, development, and 
commercial application of innovative technologies.
    (b) Eligible Individuals and Entities.--
            (1) In general.--The term ``eligible individual or entity'' 
        includes an individual, university, or small or large business 
        that complies with the requirements of paragraph (2).
            (2) Requirements.--An eligible individual or entity--
                    (A) shall have complied with such eligibility 
                requirements for participation in a competition as the 
                Board may establish and publish in the Federal Register 
                under subsection (d)(2);
                    (B) in the case of a private entity, shall be 
                incorporated in and maintain a primary place of 
                business in the United States;
                    (C) in the case of an individual, whether 
                participating in the program singly or in a group, 
                shall be a citizen of, or an alien lawfully admitted 
                for permanent residence in, the United States; and
                    (D) may not be--
                            (i) a Federal entity, such as a federally 
                        funded research and development center or a 
                        government-owned, contractor-operated 
                        laboratory;
                            (ii) a Federal employee acting within the 
                        scope of employment; or
                            (iii) an employee of a national laboratory 
                        acting within the scope of employment.
            (3) Consultation with federal employees.--An individual or 
        entity shall not be deemed ineligible under this subsection 
        because such individual or entity used Federal facilities or 
        consulted with Federal employees during a competition if such 
        facilities and employees are made available to all individuals 
        and entities participating in the competition on an equitable 
        basis.
    (c) Development of Program.--
            (1) Plan.--Not later than 120 days after the date of the 
        enactment of this Act, the Secretary shall prepare and 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 plan for implementing the program 
        described in subsection (a) that includes--
                    (A) a description of how the research topics for 
                competitions and the criteria for awarding the 
                innovation prizes will be determined;
                    (B) the terms and conditions of the competitions;
                    (C) the time frame for the award of innovation 
                prizes; and
                    (D) a description of the plans of the Secretary to 
                partner with nonprofit organizations or Federal 
                agencies to sponsor competitions or to outsource 
                administration of competitions to nonprofit 
                organizations under subsection (e).
            (2) Innovation prizes.--In developing the plan under 
        paragraph (1), the Secretary shall include the following 
        requirements:
                    (A) Categories.--There shall be 2 categories of 
                innovation prizes as follows:
                            (i) 21st century innovation prizes.--21st 
                        Century Innovation Prizes shall be awarded in 
                        multiple competitions in different research 
                        areas. The amount of each 21st Century 
                        Innovation Prize award may not exceed 
                        $2,000,000.
                            (ii) Innovate america grand challenge 
                        prizes.--
                                    (I) In general.--Innovate America 
                                Grand Challenge Prizes shall be awarded 
                                in large, highly complex, and expensive 
                                competitions that--
                                            (aa) are held every 2 to 4 
                                        years; and
                                            (bb) address research 
                                        objectives well beyond the 
                                        current state of the art and 
                                        that are intended to become 
                                        integral to major changes in 
                                        complex socio-technological 
                                        systems.
                                    (II) Amount of award.--The amount 
                                of each Innovate America Grand 
                                Challenge Prize award shall be 
                                $5,000,000 or more, but not more than 
                                $30,000,000.
                    (B) Awards.--The Board shall determine the amount 
                of each innovation prize for each competition and may 
                elect to award only a first place prize or to award 
                first, second, and third place prizes.
    (d) Advertising and Notice to Participants.--
            (1) Advertising.--The Board shall advertise each 
        competition widely to encourage broad participation in each 
        competition, including by individuals, universities (including 
        historically Black colleges and universities and other 
        institutions serving minorities), and large and small 
        businesses (including businesses owned or controlled by 
        socially and economically disadvantaged persons).
            (2) Federal register notice.--The Board shall announce each 
        competition by publishing in the Federal Register a notice that 
        includes the subject of the competition, the duration of the 
        competition, the eligibility requirements for participation in 
        the competition, the process for participants to register for 
        the competition, the amount of the innovation prize, and the 
        criteria for awarding the innovation prize.
    (e) Administering Competitions.--The Board may enter into an 
agreement with a private, nonprofit organization to administer 
competitions. The duties of the administering entity under the 
agreement shall include--
            (1) advertising competitions and the results of 
        competitions;
            (2) raising funds from private entities and individuals to 
        pay for administrative costs of competitions and to contribute 
        to cash innovation prizes;
            (3) working with the Board to develop the criteria for 
        selecting winners in competitions, based on goals provided by 
        the Secretary;
            (4) determining, in consultation with the Board, the 
        appropriate amount of each innovation prize to be awarded;
            (5) selecting judges for competitions using criteria 
        developed in consultation with the Board; and
            (6) preventing the unauthorized use or disclosure of the 
        intellectual property, trade secrets, and confidential business 
        information of participants.
    (f) Funding.--
            (1) Funding sources.--
                    (A) In general.--Innovation prizes awarded under 
                the program described in subsection (a) shall consist 
                of--
                            (i) funds authorized to be appropriated 
                        under section 6; and
                            (ii) any funds raised by the administering 
                        entity under subsection (e)(2).
                    (B) Federal agencies.--The Secretary may accept 
                funds from other Federal agencies for innovation 
                prizes.
            (2) Funding from other entities.--
                    (A) In general.--The Board is authorized to enter 
                into agreements with other entities, including 
                corporations, nonprofit organizations, and other 
                government agencies, to offer joint innovation prizes 
                if--
                            (i) the joint innovation prize supports the 
                        purposes of this Act;
                            (ii) the entity offering additional funds 
                        agrees to deposit the funds into a designated 
                        escrow account; and
                            (iii) the Board retains full authority over 
                        the competition and the awarding of the cash 
                        innovation prizes.
                    (B) Prohibition on special consideration in return 
                for donations.--The Secretary may not give any special 
                consideration to any private sector entity or 
                individual in return for a donation to the 
                administering entity to fund a competition.
            (3) Announcement of innovation prizes contingent on 
        funding.--
                    (A) In general.--The Secretary may not publish the 
                notice in the Federal Register required by subsection 
                (d)(2) until all the funds necessary to pay the 
                innovation prize have been appropriated or committed in 
                writing.
                    (B) Increases in amount of innovation prize.--The 
                Secretary may increase the amount of an innovation 
                prize after an initial announcement is made under 
                subsection (d)(2) if--
                            (i) notice of the increase is published in 
                        the Federal Register; and
                            (ii) the funds needed to pay the amount of 
                        the increase have been appropriated or 
                        committed in writing.
    (g) Liability.--
            (1) Waiver of liability.--
                    (A) In general.--The Secretary may require 
                participants to waive claims against the Federal 
                Government and the administering entity (except claims 
                for willful misconduct) for any injury, death, damage, 
                or loss of property, revenue, or profits arising from 
                participation in a competition.
                    (B) Notice.--The Secretary shall give notice of any 
                waiver required under subparagraph (A) in the notice 
                published in the Federal Register under subsection 
                (d)(2).
                    (C) Exception.--The Secretary may not require a 
                participant to waive claims against the administering 
                entity arising out of the unauthorized use or 
                disclosure by the administering entity of the 
                intellectual property, trade secrets, or confidential 
                business information of the participant.
            (2) Liability insurance.--
                    (A) Requirements.--A participant shall be required 
                to obtain liability insurance or demonstrate financial 
                responsibility, in amounts determined by the Secretary, 
                for claims by--
                            (i) 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; and
                            (ii) the Federal Government for damage or 
                        loss to Government property resulting from 
                        participation in a competition.
                    (B) Federal government insured.--The Federal 
                Government shall be named as an additional insured 
                under an insurance policy required under subparagraph 
                (A). A registered participant shall be required to 
                agree to indemnify the Federal Government against third 
                party claims for damages arising from or related to 
                participation in a competition.
    (h) Intellectual Property.--
            (1) Prohibition on the government acquiring intellectual 
        property rights.--The Federal Government may not gain an 
        interest in intellectual property developed by a participant 
        for a competition.
            (2) Licenses.--The Federal Government may negotiate a 
        license for the use of intellectual property developed by a 
        participant for a competition.

SEC. 5. REPORT.

    Not later than one year after the date of the enactment of this 
Act, and annually thereafter, the Secretary 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 report describing the activities of the program described in section 
4(a), including--
            (1) a description of the methods used to select the 
        research topics of competitions and the amounts of the 
        innovation prizes;
            (2) a discussion of the features of competitions that 
        contribute to the success or lack of success of the 
        competitions;
            (3) the number of participants involved in the 
        competitions;
            (4) the amount of private funds contributed to the program 
        and the sources of such funds;
            (5) the effect of the program on public awareness of 
        innovation; and
            (6) the effect of the program on the public image of the 
        Department of Commerce.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--
            (1) Awards.--There are authorized to be appropriated to the 
        Secretary to carry out the provisions of this Act--
                    (A) for each of fiscal years 2008 through 2012, 
                $5,000,000 for awards described in section 
                4(c)(2)(A)(i); and
                    (B) for fiscal year 2008, $30,000,000 for awards 
                described in section 4(c)(2)(A)(ii).
            (2) Administration.--In addition to the amounts authorized 
        to be appropriated under paragraph (1), there are authorized to 
        be appropriated to the Secretary for each of fiscal years 2008 
        through 2012 $750,000 for the administrative costs of carrying 
        out this Act.
    (b) Carryover of Funds.--Funds appropriated to carry out the 
provisions of this Act shall remain available until expended.
                                 <all>