1.This Act may be cited as the
Reward Innovation in America
Act
.
2.In this Act:
(1)The term administering entity means an entity
with which the Secretary enters into an agreement under section 4(e).
(2)The
term competition means a competition for an innovation prize under
the program described in section 4(a).
(3)The term innovation prize means a prize
awarded to a participant who wins a competition.
(4)The
term participant means an individual or entity that participates
in a competition.
(5)The
term Secretary means the Secretary of Commerce.
3.National
Innovation Prizes Board
(a)There
is established in the Department of Commerce a National Innovation Prizes Board
(referred to in this Act as the Board
).
(b)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)
(1)The Secretary shall determine the number of members of
the Board.
(2)The
Secretary, or a designee of the Secretary, shall serve as Chair of the
Board.
(3)
(A)The Secretary may appoint the heads of Federal agencies
to serve as full members of the Board on a permanent basis.
(B)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)
(A)Except as provided in subparagraph (B), a member of the
Board shall serve for a term of 3 years.
(B)The initial terms of members described in paragraph (3)(B)
shall be staggered.
(5)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)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)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.
4.Innovation
prizes program
(a)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)The term eligible individual or entity
includes an individual, university, or small or large business that complies
with the requirements of paragraph (2).
(2)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 employeesAn 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)
(1)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)In developing the plan under paragraph (1), the Secretary
shall include the following requirements:
(A)There
shall be 2 categories of innovation prizes as follows:
(i)21st century
innovation prizes21st 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)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)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)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)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)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
competitionsThe 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)
(1)
(A)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)The Secretary may accept funds from other Federal
agencies for innovation prizes.
(2)Funding from
other entities
(A)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 donationsThe 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)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 prizeThe 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)
(1)
(A)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)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)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)
(A)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 insuredThe 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)
(1)Prohibition on
the Government acquiring intellectual property rightsThe Federal Government may not gain an
interest in intellectual property developed by a participant for a
competition.
(2)The
Federal Government may negotiate a license for the use of intellectual property
developed by a participant for a competition.
5.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.
6.Authorization of
appropriations
(a)
(1)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)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)Funds appropriated to carry out the provisions of this Act
shall remain available until expended.