SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Research Financing 
Improvement Act of 1995''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act, the following definition shall apply:
            (1) Beneficiary industry.--The term ``beneficiary 
        industry'' means an industry with respect to which a covered 
        research activity is intended to contribute directly to the 
        commercial success, advancement, or competitiveness of the 
        industry.
            (2) Construction.--With respect to the construction of a 
        new Federal research facility, the term ``construction'' means 
        the supervising, inspecting, and actual building of the 
        facility, and all expenses incidental to those activities.
            (3) Cooperative agreement.--The term ``cooperative 
        agreement'' means a cooperative agreement between the Federal 
        Government and representatives of a beneficiary industry 
        entered into under section 3(a).
            (4) Covered research activity.--The term ``covered research 
        activity'' means a research activity conducted by a Federal 
        research facility that is intended to contribute directly to 
        the commercial success, advancement, or competitiveness of one 
        or more beneficiary industries, including--
                    (A) theoretical analysis, experimentation, or the 
                systematic study of phenomena or observable facts;
                    (B) the development or testing of basic engineering 
                techniques; and
                    (C) the extension of investigative findings or 
                theory of a scientific or technical nature into 
                practical application for experimental and 
                demonstration purposes, including the experimental 
                production and testing of models, prototypes, 
                equipment, materials, and processes.
            (5) Federal research facility.--The term ``Federal research 
        facility''--
                    (A) means any federally funded research and 
                development center that is operated by the Federal 
                Government or by a contractor;
                    (B) includes any laboratory covered under section 
                12 of the Stevenson-Wydler Technology Innovation Act of 
                1980 (15 U.S.C. 3710a); and
                    (C) does not include--
                            (i) any federally funded facility with 
                        respect to which the primary mission is to 
                        assist industrial concerns in complying with 
                        Federal law;
                            (ii) any federally funded facility that 
                        conducts research activities that the President 
                        determines to be of paramount interest to the 
                        United States for reasons of national security; 
                        and
                            (iii) any facility covered by Executive 
                        Order No. 12344, dated February 1, 1982, 
                        pertaining to the naval nuclear propulsion 
                        program.
            (6) Federal agency.--The term ``Federal agency'' means any 
        Executive agency, as defined in section 105 of title 5, United 
        States Code, the military departments, as defined in section 
        102 of such title, and any agency of the legislative branch of 
        the Federal Government.
            (7) Industry.--The term ``industry'' means any domestic 
        industry--
                    (A) identified by the Secretary of Labor in the 
                Standard Industrial Classification Code issued by the 
                Secretary of Labor; or
                    (B) identified as a domestic industry by the head 
                of a Federal agency.
            (8) New federal research facility.--
                    (A) In general.--The term ``new Federal research 
                facility'' means a Federal research facility the 
                construction of which commences after the date of 
                enactment of this Act.
                    (B) Significant expansion included.--The term ``new 
                Federal research facility'' includes any significant 
                expansion of a Federal research facility that commences 
                after the date of enactment of this Act.

SEC. 3. COOPERATIVE AGREEMENTS.

    (a) Federal Research Facilities.--Notwithstanding any other 
provision of law, no new Federal research facility may be constructed 
to carry out a covered research activity unless the head of the Federal 
agency with jurisdiction over the new Federal research facility enters 
into a cooperative agreement with appropriate representatives of each 
beneficiary industry to be served by the covered research activity to--
            (1) carry out the construction of the new Federal research 
        facility; and
            (2) conduct a covered activity at that facility.
    (b) Requirements for Cooperative Agreements.--
            (1) In general.--Each cooperative agreement entered into 
        under subsection (a) shall--
                    (A) specify that the beneficiary industries that 
                are parties to the cooperative agreement shall pay not 
                less than 50 percent of the cost of the construction, 
                operation, and maintenance of the new Federal research 
                facility that is the subject of the cooperative 
                agreement;
                    (B) specify the percentage amount that each 
                beneficiary industry referred to in subparagraph (A) is 
                required to pay to cover the costs under such 
                subparagraph;
                    (C) specify that the agency head may enter into 
                such contracts with, and award such grants to 
                representatives of the beneficiary industries, as are 
                necessary to carry out the cooperative agreement;
                    (D) provide for--
                            (i) the sharing, among beneficiary 
                        industries, of certain intellectual property 
                        obtained from covered research activities 
                        conducted at the new Federal research facility; 
                        and
                            (ii) the protection of certain intellectual 
                        property of the beneficiary industry used by 
                        the Federal Government in carrying out the 
                        covered research activities; and
                    (E) specify the conditions under which, and the 
                procedures pursuant to which, the Federal Government 
                may terminate the construction of the new Federal 
                research facility or the covered research activity.
            (2) Percentage amount.--The percentage amount that a 
        beneficiary industry shall be required to pay under paragraph 
        (1)(B) shall be determined by the head of the Federal agency in 
        accordance with a formula developed by the agency head to 
        provide for contributions from all beneficiary industries 
        served by the new Federal research facility.
    (c) Regulations.--The head of each Federal agency shall promulgate 
such regulations as may be necessary to carry out this section, 
including regulations concerning--
            (1) monitoring the execution of cooperative agreements 
        entered into under subsection (a);
            (2) the establishment of procedures regarding financial 
        reporting and auditing to ensure that any contract entered into 
        under this section or grant award made pursuant to this section 
        is used only for the purposes specified in the applicable 
        cooperative agreement entered into under subsection (a); and
            (3) the appropriate dissemination of the results of 
        research conducted pursuant to a cooperative agreement entered 
        into under subsection (a).
Federal Research Financing Improvement Act of 1995 - Prohibits the construction of new Federal research facilities to carry out a covered research activity unless the head of the Federal agency with jurisdiction over the new facility enters into a cooperative agreement for such construction and the conduct of such research with appropriate representatives of each beneficiary industry to be served by the activity.  Requires the beneficiary industries to pay at least half the cost of construction (individual percentages to be determined according to a formula developed by the appropriate Federal agency head).  Requires the agreement to provide for both:  (1) sharing among beneficiary industries of intellectual property obtained from covered research activities; and (2) protection of certain intellectual property used by the Federal Government in carrying out the activities.
Federal Research Financing Improvement Act of 1995