II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Collaborative Opportunities to Mobilize and Promote 

6 Education, Technology, and Enterprise Act of 2005’’ or 

7 the ‘‘COMPETE Act of 2005’’. 

8 (b) TABLE OF CONTENTS.—The table of contents of 

9 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—TAX INCENTIVES 

SUBTITLE A—RESEARCH CREDIT
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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. 

1 TITLE I—TAX INCENTIVES 

2 Subtitle A—Research Credit 

3 SEC. 101. EXTENSION OF RESEARCH CREDIT. 

4 (a) IN GENERAL.—Subsection (h) of section 41 of the 

5 Internal Revenue Code of 1986 (relating to termination) 

6 is amended by striking ‘‘2005’’ and inserting ‘‘2007’’. 

7 (b) CONFORMING AMENDMENT.—Subparagraph (D) 

8 of section 45C(b)(1) of such Code is amended by striking 

9 ‘‘2005’’ and inserting ‘‘2007’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to amounts paid or incurred after 

12 the date of the enactment of this Act. 
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1 SEC. 102. INCREASE IN RATES OF ALTERNATIVE INCRE2 MENTAL CREDIT. 

3 (a) IN GENERAL.—Subparagraph (A) of section 

4 41(c)(4) of the Internal Revenue Code of 1986 (relating 

5 to election of alternative incremental credit) is amended— 

6 (1) by striking ‘‘2.65 percent’’ and inserting ‘‘3 

7 percent’’; 

8 (2) by striking ‘‘3.2 percent’’ and inserting ‘‘4 

9 percent’’; and 

10 (3) by striking ‘‘3.75 percent’’ and inserting ‘‘5 

11 percent’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years ending after the 

14 date of the enactment of this Act. 

15 SEC. 103. ALTERNATIVE SIMPLIFIED CREDIT FOR QUALI16 FIED RESEARCH EXPENSES. 

17 (a) IN GENERAL.—Subsection (c) of section 41 of the 

18 Internal Revenue Code of 1986 (relating to base amount) 

19 is amended by redesignating paragraphs (5) and (6) as 

20 paragraphs (6) and (7), respectively, and by inserting 

21 after paragraph (4) the following new paragraph: 

22 ‘‘(5) ELECTION OF ALTERNATIVE SIMPLIFIED

23 CREDIT.— 

24 ‘‘(A) IN GENERAL.—At the election of the 

25 taxpayer, the credit determined under sub26 section (a)(1) shall be equal to 12 percent of so 
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1 much of the qualified research expenses for the 

2 taxable year as exceeds 50 percent of the aver3 age qualified research expenses for the 3 tax4 able years preceding the taxable year for which 

5 the credit is being determined. 

6 ‘‘(B) SPECIAL RULE IN CASE OF NO

7 QUALIFIED RESEARCH EXPENSES IN ANY OF 3

8 PRECEDING TAXABLE YEARS.— 

9 ‘‘(i) TAXPAYERS TO WHICH SUBPARA10 GRAPH APPLIES.—The credit under this 

11 paragraph shall be determined under this 

12 subparagraph if the taxpayer has no quali13 fied research expenses in any 1 of the 3 

14 taxable years preceding the taxable year 

15 for which the credit is being determined. 

16 ‘‘(ii) CREDIT RATE.—The credit de17 termined under this subparagraph shall be 

18 equal to 6 percent of the qualified research 

19 expenses for the taxable year. 

20 ‘‘(C) ELECTION.—An election under this 

21 paragraph shall apply to the taxable year for 

22 which made and all succeeding taxable years 

23 unless revoked with the consent of the Sec24 retary. An election under this paragraph may 
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1 not be made for any taxable year to which an 

2 election under paragraph (4) applies.’’. 

3 (b) COORDINATION WITH ELECTION OF ALTER4 NATIVE INCREMENTAL CREDIT.— 

5 (1) IN GENERAL.—Section 41(c)(4)(B) of the 

6 Internal Revenue Code of 1986 (relating to election) 

7 is amended by adding at the end the following: ‘‘An 

8 election under this paragraph may not be made for 

9 any taxable year to which an election under para10 graph (5) applies.’’. 

11 (2) TRANSITION RULE.—In the case of an elec12 tion under section 41(c)(4) of the Internal Revenue 

13 Code of 1986 which applies to the taxable year 

14 which includes the date of the enactment of this Act, 

15 such election shall be treated as revoked with the 

16 consent of the Secretary of the Treasury if the tax17 payer makes an election under section 41(c)(5) of 

18 such Code (as added by subsection (a)) for such 

19 year. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years ending after the 

22 date of the enactment of this Act. 
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1 Subtitle B—Education 

2 SEC. 111. CREDIT FOR INFORMATION AND COMMUNICA3 TIONS TECHNOLOGY EDUCATION AND TRAIN4 ING PROGRAM EXPENSES. 

5 (a) IN GENERAL.—Subpart B of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by adding at the end the following: 

8 ‘‘SEC. 30B. INFORMATION AND COMMUNICATIONS TECH9 NOLOGY EDUCATION AND TRAINING PRO10 GRAM EXPENSES. 

11 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al12 lowed as a credit against the tax imposed by this chapter 

13 for the taxable year an amount equal to 50 percent of in14 formation and communications technology education and 

15 training program expenses paid or incurred by the tax16 payer for the benefit of— 

17 ‘‘(1) in the case of a taxpayer engaged in a 

18 trade or business, an employee of the taxpayer, or 

19 ‘‘(2) in the case of a taxpayer who is an indi20 vidual not so engaged, such individual. 

21 ‘‘(b) LIMITATIONS.— 

22 ‘‘(1) EMPLOYERS.—In the case of any taxpayer 

23 described in subsection (a)(1), the amount of ex24 penses which may be taken into account under sub-
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1 section (a) for the taxable year shall not exceed the 

2 greater of— 

3 ‘‘(A) the excess of— 

4 ‘‘(i) the sum of— 

5 ‘‘(I) $10,000 multiplied by the 

6 number of qualified individuals who 

7 are employees and with respect to 

8 whom the taxpayer has paid or in9 curred information and communica10 tions technology education and train11 ing expenses, plus 

12 ‘‘(II) $8,000 multiplied by the 

13 number of all other employees with re14 spect to whom the taxpayer has paid 

15 or incurred such expenses, over 

16 ‘‘(ii) the average amount of such ex17 penses paid or incurred by the taxpayer 

18 with respect to all employees for the 3 pre19 ceding taxable years, or 

20 ‘‘(B) the sum of— 

21 ‘‘(i) $4,000 multiplied by the number 

22 of qualified individuals who are employees 

23 and with respect to whom the taxpayer has 

24 paid or incurred such expenses, plus 
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1 ‘‘(ii) $2,500 multiplied by the number 

2 of all other employees with respect to 

3 whom the taxpayer has paid or incurred 

4 such expenses. 

5 ‘‘(2) INDIVIDUALS.—The amount of expenses 

6 with respect to any individual described in sub7 section (a)(2) which may be taken into account 

8 under subsection (a) for the taxable year shall not 

9 exceed $2,500 ($4,000 in the case of a qualified in10 dividual). 

11 ‘‘(3) COORDINATION OF CREDITS.— 

12 ‘‘(A) IN GENERAL.—The credit under sub13 section (a)(1) allowed to an employer with re14 spect to any employee shall be reduced by the 

15 coordination exclusion amount. 

16 ‘‘(B) PORTION OF CREDIT ALLOWABLE.— 

17 For purposes of subparagraph (A), the coordi18 nation exclusion amount is an amount which 

19 bears the same ratio to the applicable limitation 

20 as— 

21 ‘‘(i) the amount (if any) of the limita22 tion applicable to such employee under 

23 subsection (b)(2) which such employee 

24 does not assign to such employer, bears to 
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1 ‘‘(ii) $2,500 ($4,000 in the case of an 

2 employee who is a qualified individual). 

3 ‘‘(C) APPLICABLE LIMITATION.—For pur4 poses of subparagraph (B), the term ‘applicable 

5 limitation’ means the amount under paragraph 

6 (2) with respect to such employee which is used 

7 by such employer to calculate the limitation 

8 under such paragraph. 

9 ‘‘(4) QUALIFIED INDIVIDUAL.—The term ‘quali10 fied individual’ means an individual— 

11 ‘‘(A) with respect to whom all information 

12 and communications technology education and 

13 training program expenses are paid or incurred 

14 in connection with a program operated— 

15 ‘‘(i) in an empowerment zone or en16 terprise community designated under part 

17 I of subchapter U or a renewal community 

18 designated under part I of subchapter X, 

19 ‘‘(ii) in a school district in which at 

20 least 50 percent of the students attending 

21 schools in such district are eligible for free 

22 or reduced-cost lunches under the school 

23 lunch program established under the Rich24 ard B. Russell National School Lunch Act, 
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1 ‘‘(iii) in an area designated as a dis2 aster area by the Secretary of Agriculture 

3 or by the President under the Robert T. 

4 Stafford Disaster Relief and Emergency 

5 Assistance Act in the taxable year or any 

6 of the 4 preceding taxable years, 

7 ‘‘(iv) in a rural enterprise community 

8 designated under section 766 of the Agri9 culture, Rural Development, Food and 

10 Drug Administration, and Related Agen11 cies Appropriations Act, 1999, 

12 ‘‘(v) in an area designated by the Sec13 retary of Agriculture as a Rural Economic 

14 Area Partnership Zone, 

15 ‘‘(vi) in an area over which an Indian 

16 tribal government (as defined in section 

17 7701(a)(40)) has jurisdiction, or 

18 ‘‘(vii) by an employer who has 200 or 

19 fewer employees for each business day in 

20 each of 20 or more calendar weeks in the 

21 current or preceding calendar year, 

22 ‘‘(B) with a disability, or 

23 ‘‘(C) who is receiving a benefit under chap24 ter 2 of title II of the Trade Act of 1974. 
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1 ‘‘(c) INFORMATION TECHNOLOGY EDUCATION AND

2 TRAINING PROGRAM EXPENSES.—For purposes of this 

3 section— 

4 ‘‘(1) IN GENERAL.—The term ‘information 

5 technology education and training program expenses’ 

6 means expenses paid or incurred by reason of the 

7 participation of the taxpayer (or any employee of the 

8 taxpayer) in any information and communications 

9 technology education and training program. Such ex10 penses shall include expenses paid in connection 

11 with— 

12 ‘‘(A) course work, 

13 ‘‘(B) certification testing, 

14 ‘‘(C) programs carried out under the Act 

15 of August 16, 1937 (50 Stat. 664, chapter 663; 

16 29 U.S.C. 50 et seq.), which are registered by 

17 the Department of Labor, and 

18 ‘‘(D) other expenses that are essential to 

19 assessing skill acquisition. 

20 ‘‘(2) INFORMATION TECHNOLOGY EDUCATION

21 AND TRAINING PROGRAM.—The term ‘information 

22 technology education and training program’ means a 

23 training program in information and communica24 tions technology workplace disciplines or which is 

25 provided in the United States by an accredited col-
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1 lege, university, private career school, postsecondary 

2 educational institution, a commercial information 

3 technology provider, or an employer-owned informa4 tion technology training organization. 

5 ‘‘(3) COMMERCIAL INFORMATION TECHNOLOGY

6 TRAINING PROVIDER.—The term ‘commercial infor7 mation technology training provider’ means a private 

8 sector organization providing an information and 

9 communications technology education and training 

10 program. 

11 ‘‘(4) EMPLOYER-OWNED INFORMATION TECH12 NOLOGY TRAINING ORGANIZATION.—The term ‘em13 ployer-owned information technology training organi14 zation’ means a private sector organization that pro15 vides information technology training to its employ16 ees using internal training development and delivery 

17 personnel. The training programs must use industry18 recognized training disciplines and evaluation meth19 ods, comparable to institutional and commercial 

20 training providers. 

21 ‘‘(d) DENIAL OF DOUBLE BENEFIT.— 

22 ‘‘(1) DISALLOWANCE OF OTHER CREDITS AND

23 DEDUCTIONS.—No deduction or credit shall be al24 lowed under any other provision of this chapter for 
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1 expenses taken into account in determining the cred2 it under this section. 

3 ‘‘(2) REDUCTION FOR HOPE AND LIFETIME

4 LEARNING CREDITS.—The amount taken into ac5 count under subsection (a) shall be reduced by the 

6 information technology education and training pro7 gram expenses taken into account in determining the 

8 credits under section 25A. 

9 ‘‘(e) CERTAIN RULES MADE APPLICABLE.—For pur10 poses of this section, rules similar to the rules of section 

11 45A(e)(2) and subsections (c), (d), and (e) of section 52 

12 shall apply. 

13 ‘‘(f) APPLICATION WITH OTHER CREDITS.—The 

14 credit allowed by subsection (a) for any taxable year shall 

15 not exceed the excess (if any) of— 

16 ‘‘(1) the sum of the regular tax liability (as de17 fined by section 26(b)) plus the tax imposed by sec18 tion 55, over 

19 ‘‘(2) the sum of the credits allowable under sub20 part A and section 27 for the taxable year. 

21 ‘‘(g) INFLATION ADJUSTMENTS.—In the case of a 

22 taxable year beginning after 2004, each of the dollar 

23 amounts under paragraphs (1), (2), and (3) of subsection 

24 (b) shall be increased by an amount equal to— 

25 ‘‘(1) such dollar amount, multiplied by 
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1 ‘‘(2) the cost-of-living adjustment determined 

2 under section 1(f)(3) of the calendar year in which 

3 the taxable year begins, determined by substituting 

4 ‘calendar year 2003’ for ‘calendar year 1992’ in sub5 paragraph (B) thereof. 

6 If any amount as adjusted under the preceding sentence 

7 is not a multiple of $100, such amount shall be rounded 

8 to the next lowest multiple of $100.’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for subpart B of part IV of subchapter A of chapter 1 

11 of the Internal Revenue Code of 1986 is amended by add12 ing at the end the following: 

‘‘Sec. 30B. Information and communications technology education and training 

program expenses.’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to amounts paid or incurred in tax15 able years beginning after December 31, 2004. 

16 SEC. 112. ELIGIBLE EDUCATIONAL INSTITUTION. 

17 (a) IN GENERAL.—Section 25A(f)(2) of the Internal 

18 Revenue Code of 1986 (relating to eligible educational in19 stitution) is amended to read as follows: 

20 ‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.— 

21 The term ‘eligible educational institution’ means— 

22 ‘‘(A) an institution— 
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1 ‘‘(i) which is described in section 

2 101(b) or 102(a) of the Higher Education 

3 Act of 1965, and 

4 ‘‘(ii) which is eligible to participate in 

5 a program under title IV of such Act, or 

6 ‘‘(B) a commercial information and com7 munications technology training provider (as 

8 defined in section 30B(c)(3)).’’. 

9 (b) CONFORMING AMENDMENT.—The second sen10 tence of section 221(d)(2) of the Internal Revenue Code 

11 of 1986 is amended by striking ‘‘section 25A(f)(2)’’ and 

12 inserting ‘‘section 25A(f)(2)(A)’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2004. 

16 SEC. 113. ALTERNATIVE PERCENTAGE LIMITATION FOR 

17 CORPORATE CHARITABLE CONTRIBUTIONS 

18 TO THE MATHEMATICS AND SCIENCE PART19 NERSHIP PROGRAM. 

20 (a) IN GENERAL.—Section 170(b) of the Internal 

21 Revenue Code of 1986 (related to percentage limitations) 

22 is amended by adding at the end the following new para23 graph: 
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1 ‘‘(3) SPECIAL RULE FOR CORPORATE CON2 TRIBUTIONS TO THE MATHEMATICS AND SCIENCE

3 PARTNERSHIP PROGRAM.— 

4 ‘‘(A) IN GENERAL.—In the case of a cor5 poration which makes an eligible mathematics 

6 and science contribution— 

7 ‘‘(i) the limitation under paragraph 

8 (2) shall apply separately with respect to 

9 all such contributions and all other chari10 table contributions, and 

11 ‘‘(ii) paragraph (2) shall be applied 

12 with respect to all eligible mathematics and 

13 science contributions by substituting ‘15 

14 percent’ for ‘10 percent’. 

15 ‘‘(B) ELIGIBLE MATHEMATICS AND

16 SCIENCE CONTRIBUTION.— 

17 ‘‘(i) IN GENERAL.—For purposes of 

18 this paragraph, the term ‘eligible mathe19 matics and science contribution’ means a 

20 charitable contribution (other than a con21 tribution of used equipment) to a qualified 

22 partnership for the purpose of an activity 

23 described in section 2202(c) of the Ele24 mentary and Secondary Education Act of 

25 1965. 
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1 ‘‘(ii) QUALIFIED PARTNERSHIP.—The 

2 term ‘qualified partnership’ means an eligi3 ble partnership (within the meaning of sec4 tion 2201(b)(1) of the Elementary and 

5 Secondary Education Act of 1965), but 

6 only to the extent that such partnership 

7 does not include a person other than a per8 son described in paragraph (1)(A).’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to contributions made after the 

11 date of the enactment of this Act. 

12 TITLE II—EDUCATION 

13 PROVISIONS 

14 SEC. 201. REGIONAL TRAINING AND RESEARCH CENTERS. 

15 (a) CENTERS ESTABLISHED.—From amounts appro16 priated under subsection (f), the Director of the National 

17 Science Foundation shall award grants, on a competitive 

18 basis, to eligible entities to enable the eligible entities to 

19 establish 10 regional training and research centers to help 

20 maintain the Nation’s workforce and education investment 

21 and infrastructure in the sciences, technology, engineer22 ing, and mathematics. 

23 (b) ELIGIBLE ENTITY DEFINED.—In this section the 

24 term ‘‘eligible entity’’ means a partnership between an in-
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1 stitution of higher education and 1 or more of the fol2 lowing entities: 

3 (1) A research organization. 

4 (2) An organization described in section 

5 501(c)(3) of the Internal Revenue Code of 1986 

6 that— 

7 (A) is exempt from taxation under section 

8 501(a) of such Code; and 

9 (B) has expertise in the sciences, tech10 nology, engineering, or mathematics. 

11 (3) A trade or business. 

12 (c) LOCATION.—The Director of the National Science 

13 Foundation shall award a grant for the establishment of 

14 1 regional training and research center in each of the 10 

15 geographic regions of the United States that is served by 

16 a regional educational laboratory under section 174 of the 

17 Education Sciences Reform Act of 2002 (20 U.S.C. 9564). 

18 (d) DESIGNATION.—Each regional training and re19 search center established under this section shall be known 

20 as a ‘‘Making America Competitive Center’’ (MAC Cen21 ter). 

22 (e) USE OF FUNDS.— 

23 (1) IN GENERAL.—Each eligible entity receiving 

24 a grant under this section shall use the grant funds 
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1 to establish a regional training and research center 

2 that— 

3 (A) provides training, technical assistance, 

4 and professional development in the sciences, 

5 technology, engineering, and mathematics, to or 

6 for States, local educational agencies, qualified 

7 teachers, and schools, in the region served by 

8 the regional training and research center; 

9 (B)(i) develops and funds joint cooperative 

10 programs, for qualified teachers and students, 

11 with a trade or business related to the sciences, 

12 technology, engineering, or mathematics; and 

13 (ii) develops instructional materials and 

14 teaching methods in the areas of the sciences, 

15 technology, engineering, and mathematics for 

16 use in primary and secondary schools in the re17 gion served by the center; and 

18 (C) builds networks among the sciences, 

19 technology, engineering, and mathematics re20 sources within the 10 regions and nationally. 

21 (2) QUALIFIED TEACHER.—For purposes of 

22 paragraph (1)(B), the term ‘‘qualified teacher’’ 

23 means any individual who— 

24 (A) teaches one or more courses in grades 

25 4 through 12 primarily in— 
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1 (i) science; 

2 (ii) computer science; 

3 (iii) occupational preparation with re4 spect to vocational and technical occupa5 tions; 

6 (iv) engineering; or 

7 (v) mathematics; or 

8 (B)(i) received a baccalaureate or similar 

9 degree with a major or a minor in the sciences, 

10 technology, engineering, or mathematics from a 

11 college, university, vocational school, or other 

12 postsecondary institution eligible to participate 

13 in a student aid program administered by the 

14 Department of Education; and 

15 (ii) is a teacher who is highly qualified 

16 (within the meaning of section 9101(23) of the 

17 Elementary and Secondary Education Act of 

18 1965). 

19 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated to carry out this sec21 tion— 

22 (1) $200,000,000 for fiscal year 2006; 

23 (2) $210,000,000 for fiscal year 2007; 

24 (3) $230,000,000 for fiscal year 2008; 

25 (4) $270,000,000 for fiscal year 2009; and 
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1 (5) $350,000,000 for fiscal year 2010. 

2 SEC. 202. MATH AND SCIENCE PARTNERSHIP BONUS 

3 GRANTS. 

4 Part B of title II of the Elementary and Secondary 

5 Education Act of 1965 (20 U.S.C. 6661 et seq.) is amend6 ed by adding at the end the following: 

7 ‘‘SEC. 2204. MATH AND SCIENCE PARTNERSHIP BONUS 

8 GRANTS. 

9 ‘‘(a) IN GENERAL.—From amounts appropriated 

10 under subsection (d), the Secretary shall award a grant— 

11 ‘‘(1) for each of the school years 2005–2006 

12 through 2014–2015, to each of the 5 elementary 

13 schools and each of the 5 secondary schools in a 

14 State whose students demonstrate the most improve15 ment in mathematics, as measured by the improve16 ment in the students’ average score on the State’s 

17 assessments in mathematics from the school year 

18 preceding the school year for which the grant is 

19 awarded to the school year for which the grant is 

20 awarded; and 

21 ‘‘(2) for each of the school years 2009–2010 

22 through 2014–2015, to each of the 5 elementary 

23 schools and each of the 5 secondary schools in a 

24 State whose students demonstrate the most improve25 ment in science, as measured by the improvement in 
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1 the students’ average score on the State’s assess2 ments in science from the school year preceding the 

3 school year for which the grant is awarded to the 

4 school year for which the grant is awarded. 

5 ‘‘(b) GRANT AMOUNT.—The amount of each grant 

6 awarded under this section shall be $500,000. 

7 ‘‘(c) APPLICABILITY.—Sections 2201, 2202, and 

8 2203 shall not apply to this section. 

9 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to carry out this section 

11 $130,000,000 for each of fiscal years 2006 through 2009, 

12 and $260,000,000 for each of fiscal years 2010 through 

13 2015.’’. 

14 SEC. 203. MATCHING FUNDS PROGRAM TO PROMOTE AMER15 ICAN COMPETITIVENESS THROUGH GRAD16 UATE EDUCATION. 

17 (a) PURPOSE.—The purpose of this section is to pro18 mote America’s economic competitiveness and job creation 

19 by— 

20 (1) assisting graduate students studying the 

21 sciences, technology, engineering, and mathematics; 

22 (2) advancing education in the sciences, tech23 nology, engineering, and mathematics; 

24 (3) stimulating greater links between private in25 dustry and graduate education; and 
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1 (4) enabling the Office of Science of the De2 partment of Energy to establish a matching funds 

3 program for eligible institutions of higher education. 

4 (b) DEFINITIONS.—In this section: 

5 (1) ELIGIBLE INSTITUTION OF HIGHER EDU6 CATION.—The term ‘‘eligible institution of higher 

7 education’’ means an institution of higher education, 

8 as defined in section 101(a) of the Higher Education 

9 Act of 1965 (20 U.S.C. 1001), that— 

10 (A) offers an established program of post11 baccalaureate study leading to a graduate de12 gree in the sciences, technology, engineering, or 

13 mathematics; and 

14 (B) enters into a written agreement with 

15 the Director pursuant to subsection (e) to carry 

16 out the authorized activities described in the 

17 application submitted under subsection (d). 

18 (2) DIRECTOR.—The term ‘‘Director’’ means 

19 the Director of the Office of Science of the Depart20 ment of Energy. 

21 (c) GRANTS.— 

22 (1) GRANTS AUTHORIZED.—The Director is au23 thorized to award grants, on a competitive basis, to 

24 eligible institutions of higher education to enable the 
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1 eligible institutions of higher education to carry out 

2 authorized activities described in subsection (e). 

3 (2) MATCHING FUNDS REQUIRED.—In order to 

4 receive a grant under this subsection an eligible in5 stitution of higher education shall agree to provide 

6 matching funds, toward the cost of the authorized 

7 activities to be assisted under the grant, in an 

8 amount equal to 25 percent of the funds received 

9 under the grant. 

10 (3) AWARD CONSIDERATIONS.—In awarding 

11 grants under this subsection the Director shall take 

12 into consideration— 

13 (A) the demonstrated commitment of the 

14 eligible institution of higher education to pro15 viding matching funds (including tuition remis16 sion, tuition waivers, and other types of institu17 tional support) toward the cost of the author18 ized activities to be assisted under the grant; 

19 (B) the demonstrated capacity of the eligi20 ble institution of higher education to raise 

21 matching funds from private sources; 

22 (C) the demonstrated ability of the eligible 

23 institution of higher education to work with pri24 vate corporations and organizations to promote 

25 economic competitiveness and job creation; 
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1 (D) the demonstrated ability of the eligible 

2 institution of higher education to increase the 

3 number of the eligible institution of higher edu4 cation’s graduates in the sciences, technology, 

5 engineering, or mathematics with the inter6 disciplinary background and the technical, pro7 fessional and personal skills needed to con8 tribute to American competitiveness and job 

9 creation in the future; 

10 (E) the potential for the grant assistance 

11 to increase the number of graduates in the 

12 sciences, technology, engineering, or mathe13 matics at the eligible institution of higher edu14 cation; and 

15 (F) the demonstrated track record of the 

16 eligible institution of higher education in out17 reach and mentoring activities that have the ex18 pressed purpose of recruiting and retaining 

19 women, recognized minorities, and individuals 

20 with disabilities in the sciences, technology, en21 gineering, or mathematics. 

22 (4) AMOUNT.—The Director shall award each 

23 grant under this subsection in an amount that is not 

24 more than $1,000,000 for each fiscal year. 
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1 (5) EQUITABLE GEOGRAPHIC DISTRIBUTION.— 

2 In awarding grants under this subsection the Direc3 tor shall ensure— 

4 (A) an equitable geographic distribution of 

5 the grants; and 

6 (B) an equitable distribution among public 

7 and independent eligible institutions of higher 

8 education. 

9 (d) APPLICATIONS.—Each eligible institution of high10 er education desiring a grant under this section shall sub11 mit an application to the Director at such time, in such 

12 manner, and accompanied by such information and assur13 ances as the Director may require. Each such application 

14 shall describe— 

15 (1) the authorized activities for which assist16 ance is sought; 

17 (2) the source and amount of the matching 

18 funds to be provided; and 

19 (3) the amount of funds raised by the eligible 

20 institution of higher education from private sources 

21 that will be allocated and spent to carry out the au22 thorized activities described in subsection (e). 

23 (e) AUTHORIZED ACTIVITIES; AGREEMENT.—Each 

24 eligible institution of higher education desiring a grant 

25 under this section shall enter into a written agreement 
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1 with the Director under which the eligible institution of 

2 higher education agrees to use all of the grant funds— 

3 (1) to provide stipends or other financial assist4 ance (such as tuition assistance and related ex5 penses) for students who are enrolled in graduate 

6 programs in the sciences, technology, engineering, or 

7 mathematics at the eligible institution of higher edu8 cation; and 

9 (2) to support outreach and mentoring activities 

10 to increase the participation of underrepresented 

11 groups in the sciences, technology, engineering, or 

12 mathematics at all or any level of education, includ13 ing elementary, secondary and post-secondary edu14 cation. 

15 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated to carry out this sec17 tion— 

18 (1) $50,000,000 for fiscal year 2006; 

19 (2) $60,000,000 for fiscal year 2007; 

20 (3) $70,000,000 for fiscal year 2008; 

21 (4) $80,000,000 for fiscal year 2009; and 

22 (5) $90,000,000 for fiscal year 2010. 
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1 TITLE III—UNITED STATES PAT2 ENT AND TRADEMARK FEE 

3 MODERNIZATION 

4 SEC. 301. PATENT AND TRADEMARK OFFICE FUNDING. 

5 (a) AMENDMENT.—Section 42(c) of title 35, United 

6 States Code, is amended— 

7 (1) by striking ‘‘(c)’’ and inserting ‘‘(c)(1)’’; 

8 and 

9 (2) by adding at the end the following: 

10 ‘‘(2) If estimated fee collections by the Patent 

11 and Trademark Office for a fiscal year exceed the 

12 amount appropriated to the Office for that fiscal 

13 year, the Director shall reduce fees established 

14 under section 41 of this title and section 31(a) of 

15 the Act of July 5, 1946 (commonly referred to as 

16 the ‘Trademark Act of 1946’) for that fiscal year or 

17 the remainder of that fiscal year so that estimated 

18 collections for that fiscal year are equal to the 

19 amount appropriated to the Office for that fiscal 

20 year. Such reductions shall take effect on the later 

21 of October 1, of that fiscal year or 2 months after 

22 the date of enactment of the Act making the appro23 priation, and shall not be retroactive.’’. 
29 

•S 1020 IS

1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall apply with respect to fiscal year 2006 

3 and each fiscal year thereafter. 

Æ