Prize awards

(a)

In general

The Director of the National Science Foundation shall carry out a pilot program to award innovation inducement cash prizes in any area of research supported by the Foundation. The Director may carry out a program of cash prizes only in conformity with this section. (b)

Topics

In identifying topics for prize competitions under this section, the Director shall— (1)consult widely both within and outside the Federal Government; (2)give priority to high-risk, high-reward research challenges and to problems whose solution could improve the economic competitiveness of the United States; and (3)give consideration to the extent to which the topics have the potential to raise public awareness about federally sponsored research. (c)

Types of contests

The Director shall consider all categories of innovation inducement prizes, including— (1)contests in which the award is to the first team or individual who accomplishes a stated objective; and (2)contests in which the winner is the team or individual who comes closest to achieving an objective within a specified time. (d)

Advertising and announcement

(1)

Advertising and solicitation of competitors

The Director shall widely advertise prize competitions to encourage broad participation, including by individuals, institutions of higher education, nonprofit organizations, and businesses. (2)

Announcement through federal register notice

The Director shall announce each prize competition by publishing a notice in the Federal Register. This notice shall include 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 prize, and the criteria for awarding the prize, including the method by which the prize winner or winners will be selected. (3)

Time to announcement

The Director shall announce a prize competition within 18 months after receipt of appropriated funds. (e)

Funding

(1)

Funding sources

Prizes under this Act shall consist of Federal appropriated funds and any funds raised pursuant to donations authorized under section 11(f) of the National Science Foundation Act of 1950 (42 U.S.C. 1870(f)) for specific prize competitions. (2)

Announcement of prizes

The Director may not issue a notice as required by subsection (d)(2) until all of the funds needed to pay out the announced amount of the prize have been appropriated or committed in writing by another entity pursuant to paragraph (1). (f)

Eligibility

To be eligible to win a prize under this section, an individual or entity— (1)shall have complied with all of the requirements under this section; (2)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 United States citizen or national, or an alien lawfully admitted to the United States for permanent residence; and (3)shall not be a Federal entity, a Federal employee acting within the scope of his or her employment, or a person employed at a Federal laboratory acting within the scope of his or her employment. (g)

Awards

(1)

Number of competitions

The Director may announce up to 5 prize competitions through the end of fiscal year 2013. (2)

Size of award

The Director may determine the amount of each prize award based on the prize topic, but no award shall be less than $1,000,000 or greater than $3,000,000. (3)

Selecting winners

The Director may convene an expert panel to select a winner of a prize competition. If the panel is unable to select a winner, the Director shall determine the winner of the prize. (4)

Public outreach

The Director shall publicly award prizes utilizing the Foundation’s existing public affairs and public outreach resources. (h)

Administering the competition

The Director may enter into an agreement with a private, nonprofit entity to administer the prize competition, subject to the provisions of this section. (i)

Intellectual property

The Federal Government shall not, by virtue of offering or awarding a prize under this section, be entitled to any intellectual property rights derived as a consequence of, or in direct relation to, the participation by a registered participant in a competition authorized by this section. This subsection shall not be construed to prevent the Federal Government from negotiating a license for the use of intellectual property developed for a prize competition under this section. (j)

Liability

The Director may require a registered participant in a prize competition under this section to waive liability against the Federal Government for injuries and damages that result from participation in such competition. (k)

Nonsubstitution

Any programs created under this section shall not be considered a substitute for Federal research and development programs. (l)

Reporting requirement

Not later than 5 years after the date of enactment of this Act, the National Science Board shall transmit to Congress a report containing the results of a review and assessment of the pilot program under this section, including— (1)a description of the nature and status of all completed or ongoing prize competitions carried out under this section, including any scientific achievements, publications, intellectual property, or commercialized technology that resulted from such competitions; (2)any recommendations regarding changes to, the termination of, or continuation of the pilot program; (3)an analysis of whether the program is attracting contestants more diverse than the Foundation’s traditional academic constituency; (4)an analysis of whether public awareness of innovation or of the goal of the particular prize or prizes is enhanced; (5)an analysis of whether the Foundation’s public image or ability to increase public scientific literacy is enhanced through the use of innovation inducement prizes; and (6)an analysis of the extent to which private funds are being used to support registered participants. (m)

Early termination of contests

The Director shall terminate a prize contest before any registered participant wins if the Director determines that an unregistered entity has produced an innovation that would otherwise have qualified for the prize award. (n)

Authorization of appropriations

(1)

In general

(A)

Awards

There are authorized to be appropriated to the Director for the period encompassing fiscal years 2011 through 2013 $12,000,000 for carrying out this section. (B)

Administration

Of the amounts authorized in subparagraph (A), not more than 15 percent for each fiscal year shall be available for the administrative costs of carrying out this section. (2)

Carryover of funds

Funds appropriated for prize awards under this section shall remain available until expended, and may be transferred, reprogrammed, or expended for other purposes as authorized by law only after the expiration of 7 fiscal years after the fiscal year for which the funds were originally appropriated. No provision in this section permits obligation or payment of funds in violation of section 1341 of title 31 of the United States Code (commonly referred to as the Anti-Deficiency Act).