§ 3611 TITLE 15—COMMERCE AND TRADE Page 1752

§ 3611. Additional remedies

(a) Suits at law or equity

Unless otherwise limited as in section 3607 or

3608 of this title, any person aggrieved by a violation of this chapter may sue at law or in equity.

(b) Recovery of actual damages

In any action authorized by this section for a

violation of section 3607 or 3609 of this title

where actual damages have been suffered, such

damages may be awarded or such other relief

granted as deemed fair, just, and equitable.

(c) Contribution

Every person who becomes liable to make any

payment under this section may recover contributions from any person who if sued separately, would have been liable to make the same

payment.

(d) Amounts recoverable; defendant’s attorneys’

fees

The amounts recoverable under this section

may include interest paid, reasonable attorneys’

fees, independent engineer and appraisers’ fees,

and court costs. A defendant may recover reasonable attorneys’ fees if the court determines

that the cause of action filed by the plaintiff is

frivolous, malicious, or lacking in substantial

merit.

(Pub. L. 96–399, title VI, §612, Oct. 8, 1980, 94

Stat. 1679.)

§ 3612. Concurrent State and Federal jurisdiction; venue; removal of cases

The district courts of the United States, the

United States courts of any territory, and the

United States District Court for the District of

Columbia shall have jurisdiction under this

chapter and, concurrent with State courts, of

actions at law or in equity brought under this

chapter without regard to the amount in controversy. Any such action may be brought in the

district wherein the defendant is found or is an

inhabitant or transacts business, or in the district where the sale took place, and process in

such cases may be served in other districts of

which the defendant is an inhabitant or wherever the defendant may be found. No case arising under this chapter and brought in any State

court of competent jurisdiction shall be removed

to any court of the United States, except where

any officer or employee of the United States in

his official capacity is a party.

(Pub. L. 96–399, title VI, §613, Oct. 8, 1980, 94

Stat. 1679.)

§ 3613. Limitation of actions

No action shall be maintained to enforce any

right or liability created by this chapter unless

brought within six years after such cause of action accrued, except that an action pursuant to

section 3608 of this title must be brought within

four years after October 8, 1980.

(Pub. L. 96–399, title VI, §614, Oct. 8, 1980, 94

Stat. 1680.)

§ 3614. Waiver of rights as void

Any condition, stipulation, or provision binding any person to waive compliance with any

provisions of this chapter shall be void.

(Pub. L. 96–399, title VI, §615, Oct. 8, 1980, 94

Stat. 1680.)

§ 3615. Nonexclusion of other statutory rights

and remedies

The rights and remedies provided by this chapter shall be in addition to any and all other

rights and remedies that may exist under Federal or State law.

(Pub. L. 96–399, title VI, §616, Oct. 8, 1980, 94

Stat. 1680.)

§ 3616. Separability

If any provisions of this chapter or the application thereof to any person or circumstance is

held invalid, the remainder of this chapter shall

not be affected thereby.

(Pub. L. 96–399, title VI, §617, Oct. 8, 1980, 94

Stat. 1680.)

CHAPTER 63—TECHNOLOGY INNOVATION

Sec.

3701. Findings.

3702. Purpose.

3703. Definitions.

3704. Experimental Program to Stimulate Competitive Technology.

3704a. Clearinghouse for State and Local Initiatives

on Productivity, Technology, and Innovation.

3704b. National Technical Information Service.

3704b–1. Recovery of operating costs through fee collections.

3704b–2. Transfer of Federal scientific and technical

information.

3705. Cooperative Research Centers.

3706. Grants and cooperative agreements.

3707. National Science Foundation Cooperative Research Centers.

3708. Administrative arrangements.

3709. Repealed.

3710. Utilization of Federal technology.

3710a. Cooperative research and development agreements.

3710b. Rewards for scientific, engineering, and technical personnel of Federal agencies.

3710c. Distribution of royalties received by Federal

agencies.

3710d. Employee activities.

3711. National Technology and Innovation Medal.

3711a. Malcolm Baldrige National Quality Award.

3711b. Conference on advanced automotive technologies.

3711c. Advanced motor vehicle research award.

3712. Personnel exchanges.

3713. Authorization of appropriations.

3714. Spending authority.

3715. Use of partnership intermediaries.

3716. Critical industries.

3717. National Quality Council.

3718. President’s Council on Innovation and Competitiveness.

3719. Prize competitions.

3720. Office of Innovation and Entrepreneurship.

3721. Federal loan guarantees for innovative technologies in manufacturing.

3722. Regional innovation program.

§ 3701. Findings

The Congress finds and declares that:
Page 1753 TITLE 15—COMMERCE AND TRADE § 3701

(1) Technology and industrial innovation are

central to the economic, environmental, and

social well-being of citizens of the United

States.

(2) Technology and industrial innovation

offer an improved standard of living, increased

public and private sector productivity, creation of new industries and employment opportunities, improved public services and enhanced competitiveness of United States products in world markets.

(3) Many new discoveries and advances in

science occur in universities and Federal laboratories, while the application of this new

knowledge to commercial and useful public

purposes depends largely upon actions by business and labor. Cooperation among academia,

Federal laboratories, labor, and industry, in

such forms as technology transfer, personnel

exchange, joint research projects, and others,

should be renewed, expanded, and strengthened.

(4) Small businesses have performed an important role in advancing industrial and technological innovation.

(5) Industrial and technological innovation

in the United States may be lagging when

compared to historical patterns and other industrialized nations.

(6) Increased industrial and technological innovation would reduce trade deficits, stabilize

the dollar, increase productivity gains, increase employment, and stabilize prices.

(7) Government antitrust, economic, trade,

patent, procurement, regulatory, research and

development, and tax policies have significant

impacts upon industrial innovation and development of technology, but there is insufficient

knowledge of their effects in particular sectors

of the economy.

(8) No comprehensive national policy exists

to enhance technological innovation for commercial and public purposes. There is a need

for such a policy, including a strong national

policy supporting domestic technology transfer and utilization of the science and technology resources of the Federal Government.

(9) It is in the national interest to promote

the adaptation of technological innovations to

State and local government uses. Technological innovations can improve services, reduce their costs, and increase productivity in

State and local governments.

(10) The Federal laboratories and other performers of federally funded research and development frequently provide scientific and technological developments of potential use to

State and local governments and private industry. These developments, which include inventions, computer software, and training

technologies, should be made accessible to

those governments and industry. There is a

need to provide means of access and to give

adequate personnel and funding support to

these means.

(11) The Nation should give fuller recognition to individuals and companies which have

made outstanding contributions to the promotion of technology or technological manpower for the improvement of the economic,

environmental, or social well-being of the

United States.

(Pub. L. 96–480, §2, Oct. 21, 1980, 94 Stat. 2311;

Pub. L. 99–502, §9(f)(1), Oct. 20, 1986, 100 Stat.

1797.)

AMENDMENTS

1986—Par. (10). Pub. L. 99–502 inserted ‘‘, which include inventions, computer software, and training technologies,’’.

SHORT TITLE OF 2000 AMENDMENT

Pub. L. 106–404, §1, Nov. 1, 2000, 114 Stat. 1742, provided that: ‘‘This Act [enacting section 7261c of Title

42, The Public Health and Welfare, amending sections

3703, 3704, 3707, 3710, 3710a, 3710c, 3714, and 3715 of this

title and sections 200, 202, 207, and 209 of Title 35, Patents, and enacting provisions set out as notes under

this section and section 3710a of this title] may be cited

as the ‘Technology Transfer Commercialization Act of

2000’.’’

SHORT TITLE OF 1996 AMENDMENT

Pub. L. 104–113, §1, Mar. 7, 1996, 110 Stat. 775, provided

that: ‘‘This Act [amending sections 272, 278, 278e, 278g–2,

3710, 3710a, 3710c, 3710d, 5401, 5402, 5404 to 5406, 5408, 5409,

and 5412 of this title and section 210 of Title 35, Patents,

repealing sections 5403 and 5413 of this title, and enacting provisions set out as notes under this section and

sections 272 and 275 of this title] may be cited as the

‘National Technology Transfer and Advancement Act

of 1995’.’’

SHORT TITLE OF 1992 AMENDMENT

Pub. L. 102–245, §1, Feb. 14, 1992, 106 Stat. 7, provided

that: ‘‘This Act [enacting sections 1536, 3704b–1, 3704b–2,

3716, and 3717 of this title and section 6618 of Title 42,

The Public Health and Welfare, amending sections 272,

278d, 278g, 278g–1, 278k, 278n, 1453, 1454, 3703, 3704, 3704b,

3710, 3710a, 3711a, 4603, 4603a, and 4632 of this title and

section 6683 of Title 42, enacting provisions set out as

notes under this section, sections 271, 278f, 278n, and

1453 of this title, and section 6611 of Title 42, and

amending provisions set out as a note under section

278l of this title] may be cited as the ‘American Technology Preeminence Act of 1991’.’’

Pub. L. 102–245, title I, §101, Feb. 14, 1992, 106 Stat. 7,

provided that: ‘‘This title [enacting sections 1536,

3704b–1, and 3704b–2 of this title, amending sections

278d, 278g, 278g–1, 278k, 1453, 1454, 4603, 4603a, and 4632 of

this title, enacting provisions set out as notes under

this section and sections 278f and 1453 of this title, and

amending provisions set out as a note under section

278l of this title] may be cited as the ‘Technology Administration Authorization Act of 1991’.’’

SHORT TITLE OF 1989 AMENDMENT

Pub. L. 101–189, div. C, title XXXI, §3131, Nov. 29, 1989,

103 Stat. 1674, provided that: ‘‘This part [part C

(§§3131–3133) of title XXXI of div. C of Pub. L. 101–189,

amending sections 3710, 3710a, and 3710c of this title and

enacting provisions set out as notes under this section

and section 3710a of this title] may be cited as the ‘National Competitiveness Technology Transfer Act of

1989’.’’

SHORT TITLE OF 1988 AMENDMENT

Pub. L. 100–519, title II, §211, Oct. 24, 1988, 102 Stat.

2594, provided that: ‘‘This subtitle [subtitle B (§§211,

212) of title II of Pub. L. 100–519, enacting section 3704b

of this title and amending section 3710 of this title]

may be cited as the ‘National Technical Information

Act of 1988’.’’

SHORT TITLE OF 1987 AMENDMENT

Pub. L. 100–107, §1, Aug. 20, 1987, 101 Stat. 724, provided that: ‘‘This Act [enacting section 3711a of this

title, amending section 3708 of this title, and enacting

provisions set out as a note under section 3711a of this

title] may be cited as the ‘Malcolm Baldrige National

Quality Improvement Act of 1987’.’’
§ 3701 TITLE 15—COMMERCE AND TRADE Page 1754

SHORT TITLE OF 1986 AMENDMENTS

Section 1 of Pub. L. 99–502 provided that: ‘‘This Act

[enacting sections 3710a to 3710d of this title, amending

this section, sections 3702 to 3705, 3707, 3708, 3710 to

3710d, and 3711 to 3714 of this title, and section 210 of

Title 35, Patents, and repealing section 3709 of this

title] may be cited as the ‘Federal Technology Transfer

Act of 1986’. ’’

Pub. L. 99–382, §1, Aug. 14, 1986, 100 Stat. 811, provided:

‘‘That this Act [amending section 3704 of this title]

may be cited as the ‘Japanese Technical Literature Act

of 1986’.’’

SHORT TITLE

Section 1 of Pub. L. 96–480 provided: ‘‘That this Act

[enacting this chapter] may be cited as the ‘StevensonWydler Technology Innovation Act of 1980’.’’

STUDY ON ECONOMIC COMPETITIVENESS AND INNOVATIVE

CAPACITY OF UNITED STATES AND DEVELOPMENT OF

NATIONAL ECONOMIC COMPETITIVENESS STRATEGY

Pub. L. 111–358, title VI, §604, Jan. 4, 2011, 124 Stat.

4037, provided that:

‘‘(a) STUDY.—

‘‘(1) IN GENERAL.—Not later than 1 year after the

date of the enactment of this Act [Jan. 4, 2011], the

Secretary of Commerce shall complete a comprehensive study of the economic competitiveness and innovative capacity of the United States.

‘‘(2) MATTERS COVERED.—The study required by

paragraph (1) shall include the following:

‘‘(A) An analysis of the United States economy

and innovation infrastructure.

‘‘(B) An assessment of the following:

‘‘(i) The current competitive and innovation

performance of the United States economy relative to other countries that compete economically with the United States.

‘‘(ii) Economic competitiveness and domestic

innovation in the current business climate, including tax and Federal regulatory policy.

‘‘(iii) The business climate of the United States

and those of other countries that compete economically with the United States.

‘‘(iv) Regional issues that influence the economic competitiveness and innovation capacity

of the United States, including—

‘‘(I) the roles of State and local governments

and institutions of higher education; and

‘‘(II) regional factors that contribute positively to innovation.

‘‘(v) The effectiveness of the Federal Government in supporting and promoting economic competitiveness and innovation, including any duplicative efforts of, or gaps in coverage between,

Federal agencies and departments.

‘‘(vi) Barriers to competitiveness in newly

emerging business or technology sectors, factors

influencing underperforming economic sectors,

unique issues facing small and medium enterprises, and barriers to the development and evolution of start-ups, firms, and industries.

‘‘(vii) The effects of domestic and international

trade policy on the competitiveness of the United

States and the United States economy.

‘‘(viii) United States export promotion and export finance programs relative to export promotion and export finance programs of other

countries that compete economically with the

United States, including Canada, France, Germany, Italy, Japan, Korea, and the United Kingdom, with noting of export promotion and export

finance programs carried out by such countries

that are not analogous to any programs carried

out by the United States.

‘‘(ix) The effectiveness of current policies and

programs affecting exports, including an assessment of Federal trade restrictions and State and

Federal export promotion activities.

‘‘(x) The effectiveness of the Federal Government and Federally funded research and development centers in supporting and promoting technology commercialization and technology transfer.

‘‘(xi) Domestic and international intellectual

property policies and practices.

‘‘(xii) Manufacturing capacity, logistics, and

supply chain dynamics of major export sectors,

including access to a skilled workforce, physical

infrastructure, and broadband network infrastructure.

‘‘(xiii) Federal and State policies relating to

science, technology, and education and other relevant Federal and State policies designed to promote commercial innovation, including immigration policies.

‘‘(C) Development of recommendations on the following:

‘‘(i) How the United States should invest in

human capital.

‘‘(ii) How the United States should facilitate entrepreneurship and innovation.

‘‘(iii) How best to develop opportunities for locally and regionally driven innovation by providing Federal support.

‘‘(iv) How best to strengthen the economic infrastructure and industrial base of the United

States.

‘‘(v) How to improve the international competitiveness of the United States.

‘‘(3) CONSULTATION.—

‘‘(A) IN GENERAL.—The study required by paragraph (1) shall be conducted in consultation with

the National Economic Council of the Office of Policy Development, such Federal agencies as the Secretary considers appropriate, and the Innovation

Advisory Board established under subparagraph (B).

The Secretary shall also establish a process for obtaining comments from the public.

‘‘(B) INNOVATION ADVISORY BOARD.—

‘‘(i) IN GENERAL.—The Secretary shall establish

an Innovation Advisory Board for purposes of obtaining advice with respect to the conduct of the

study required by paragraph (1).

‘‘(ii) COMPOSITION.—The Advisory Board established under clause (i) shall be comprised of 15

members, appointed by the Secretary—

‘‘(I) who shall represent all major industry

sectors;

‘‘(II) a majority of whom should be from private industry, including large and small firms,

representing advanced technology sectors and

more traditional sectors that use technology;

and

‘‘(III) who may include economic or innovation policy experts, State and local government

officials active in technology-based economic

development, and representatives from higher

education.

‘‘(iii) EXEMPTION FROM FACA.—The Federal Advisory Committee Act (5 U.S.C. App.) shall not

apply to the advisory board established under

clause (i).

‘‘(b) STRATEGY.—

‘‘(1) IN GENERAL.—Not later than 1 year after the

completion of the study required by subsection (a),

the Secretary shall develop, based on the study required by subsection (a)(1), a national 10-year strategy to strengthen the innovative and competitive capacity of the Federal Government, State and local

governments, United States institutions of higher

education, and the private sector of the United

States.

‘‘(2) ELEMENTS.—The strategy required by paragraph (1) shall include the following:

‘‘(A) Actions to be taken by individual Federal

agencies and departments to improve competitiveness.

‘‘(B) Proposed legislative actions for consideration by Congress.
Page 1755 TITLE 15—COMMERCE AND TRADE § 3701

‘‘(C) Annual goals and milestones for the 10-year

period of the strategy.

‘‘(D) A plan for monitoring the progress of the

Federal Government with respect to improving conditions for innovation and the competitiveness of

the United States.

‘‘(c) REPORT.—

‘‘(1) IN GENERAL.—Upon the completion of the strategy required by subsection (b), the Secretary of Commerce shall submit to Congress and the President a

report on the study conducted under subsection (a)

and the strategy developed under subsection (b).

‘‘(2) ELEMENTS.—The report required by paragraph

(1) shall include the following:

‘‘(A) The findings of the Secretary with respect to

the study conducted under subsection (a).

‘‘(B) The strategy required by subsection (b).’’

PROMOTING USE OF HIGH-END COMPUTING SIMULATION

AND MODELING BY SMALL- AND MEDIUM-SIZED MANUFACTURERS

Pub. L. 111–358, title VI, §605, Jan. 4, 2011, 124 Stat.

4040, provided that:

‘‘(a) FINDINGS.—Congress finds that—

‘‘(1) the utilization of high-end computing simulation and modeling by large-scale government contractors and Federal research entities has resulted in

substantial improvements in the development of advanced manufacturing technologies; and

‘‘(2) such simulation and modeling would also benefit small- and medium-sized manufacturers in the

United States if such manufacturers were to deploy

such simulation and modeling throughout their manufacturing chains.

‘‘(b) POLICY.—It is the policy of the United States to

take all effective measures practicable to ensure that

Federal programs and policies encourage and contribute to the use of high-end computing simulation and

modeling in the United States manufacturing sector.

‘‘(c) STUDY.—

‘‘(1) IN GENERAL.—Not later than 30 days after the

date of the enactment of this Act [Jan. 4, 2011], the

Secretary of Commerce, in consultation with the Secretary of Energy and the Director of the Office of

Science and Technology Policy, shall carry out,

through an interagency consulting process, a study of

the barriers to the use of high-end computing simulation and modeling by small- and medium-sized manufacturers in the United States.

‘‘(2) FACTORS.—In carrying out the study required

by paragraph (1), the Secretary of Commerce, in consultation with the Secretary of Energy and the Director of the Office of Science and Technology Policy,

shall consider the following:

‘‘(A) The access of small- and medium-sized manufacturers in the United States to high-performance computing facilities and resources.

‘‘(B) The availability of software and other applications tailored to meet the needs of such manufacturers.

‘‘(C) Whether such manufacturers employ or have

access to individuals with appropriate expertise for

the use of such facilities and resources.

‘‘(D) Whether such manufacturers have access to

training to develop such expertise.

‘‘(E) The availability of tools and other methods

to such manufacturers to understand and manage

the costs and risks associated with transitioning to

the use of such facilities and resources.

‘‘(3) REPORT.—Not later than 270 days after the

commencement of the study required by paragraph

(1), the Secretary of Commerce shall, in consultation

with the Secretary of Energy and the Director of the

Office of Science and Technology Policy, submit to

Congress a report on such study. Such report shall include such recommendations for such legislative or

administrative action as the Secretary of Commerce

considers appropriate in light of the study to increase

the utilization of high-end computing simulation and

modeling by small- and medium-sized manufacturers

in the United States.

‘‘(d) AUTHORIZATION OF DEMONSTRATION AND PILOT

PROGRAMS.—As part of the study required by subsection (c)(1), the Secretary of Commerce, the Secretary of Energy, and the Director of the Office of

Science and Technology Policy may carry out such

demonstration or pilot programs as either [the] Secretary or the Director considers appropriate to gather

experiential data to evaluate the feasibility and advisability of a specific program or policy initiative to reduce barriers to the utilization of high-end computer

modeling and simulation by small- and medium-sized

manufacturers in the United States.’’

CONGRESSIONAL FINDINGS; 2000 AMENDMENT

Pub. L. 106–404, §2, Nov. 1, 2000, 114 Stat. 1742, provided that: ‘‘The Congress finds that—

‘‘(1) the importance of linking our unparalleled network of over 700 Federal laboratories and our Nation’s universities with United States industry continues to hold great promise for our future economic

prosperity;

‘‘(2) the enactment of the Bayh-Dole Act [35 U.S.C.

200 et seq.] in 1980 was a landmark change in United

States technology policy, and its success provides a

framework for removing bureaucratic barriers and

for simplifying the granting of licenses for inventions

that are now in the Federal Government’s patent

portfolio;

‘‘(3) Congress has demonstrated a commitment over

the past 2 decades to fostering technology transfer

from our Federal laboratories and to promoting public/private sector partnerships to enhance our international competitiveness;

‘‘(4) Federal technology transfer activities have

strengthened the ability of United States industry to

compete in the global marketplace; developed a new

paradigm for greater collaboration among the scientific enterprises that conduct our Nation’s research

and development—government, industry, and universities; and improved the quality of life for the American people, from medicine to materials;

‘‘(5) the technology transfer process must be made

‘industry friendly’ for companies to be willing to invest the significant time and resources needed to develop new products, processes, and jobs using federally funded inventions; and

‘‘(6) Federal technology licensing procedures should

balance the public policy needs of adequately protecting the rights of the public, encouraging companies

to develop existing government inventions, and making the entire system of licensing government technologies more consistent and simple.’’

CONGRESSIONAL FINDINGS; 1996 AMENDMENT

Pub. L. 104–113, §2, Mar. 7, 1996, 110 Stat. 775, provided

that: ‘‘The Congress finds the following:

‘‘(1) Bringing technology and industrial innovation

to the marketplace is central to the economic, environmental, and social well-being of the people of the

United States.

‘‘(2) The Federal Government can help United

States business to speed the development of new

products and processes by entering into cooperative

research and development agreements which make

available the assistance of Federal laboratories to

the private sector, but the commercialization of technology and industrial innovation in the United States

depends upon actions by business.

‘‘(3) The commercialization of technology and industrial innovation in the United States will be enhanced if companies, in return for reasonable compensation to the Federal Government, can more easily obtain exclusive licenses to inventions which develop as a result of cooperative research with scientists employed by Federal laboratories.’’

DEFINITIONS OF TERMS; 1992 AMENDMENT

Pub. L. 102–245, §2, Feb. 14, 1992, 106 Stat. 7, provided

that: ‘‘As used in this Act [see Short Title of 1992

Amendment note above]—
§ 3701 TITLE 15—COMMERCE AND TRADE Page 1756

‘‘(1) the term ‘high-resolution information systems’

means equipment and techniques required to create,

store, recover, and play back high-resolution images

and accompanying sound;

‘‘(2) the term ‘advanced manufacturing technology’

means numerically-controlled machine tools, robots,

automated process control equipment, computerized

flexible manufacturing systems, associated computer

software, and other technology for improving manufacturing and industrial processes;

‘‘(3) the term ‘advanced materials’ means a field of

research including the study of composites, ceramics,

metals, polymers, superconducting materials, materials produced through biotechnology, and materials

production technologies, including coated systems,

that provide the potential for significant advantages

over existing materials;

‘‘(4) the term ‘Institute’ means the National Institute of Standards and Technology;

‘‘(5) the term ‘Secretary’ means the Secretary of

Commerce; and

‘‘(6) the term ‘Under Secretary’ means the Under

Secretary of Commerce for Technology.’’

CONGRESSIONAL STATEMENT OF POLICY; 1992

AMENDMENT

Pub. L. 102–245, title I, §102, Feb. 14, 1992, 106 Stat. 7,

provided that: ‘‘Congress finds that in order to help

United States industries to speed the development of

new products and processes so as to maintain the economic competitiveness of the Nation, it is necessary to

strengthen the programs and activities of the Department of Commerce’s Technology Administration and

National Institute of Standards and Technology.’’

NATIONAL COMMISSION ON REDUCING CAPITAL COSTS

FOR EMERGING TECHNOLOGY

Pub. L. 102–245, title IV, §401, Feb. 14, 1992, 106 Stat.

21, provided that:

‘‘(a) ESTABLISHMENT AND PURPOSE.—There is established a National Commission on Reducing Capital

Costs for Emerging Technology (hereafter in this section referred to as the ‘Commission’), for the purpose of

developing recommendations to increase the competitiveness of United States industry by encouraging investments in research, the development of new process

and product technologies, and the production of those

technologies.

‘‘(b) ISSUES.—The function of the Commission shall

be to address the following issues:

‘‘(1) How has the overall cost of capital paid by

United States companies differed during the past decade from that paid by companies in other industrial

economies such as Germany, Japan, and the United

Kingdom?

‘‘(2) To what extent has the cost of capital faced by

technology companies differed from the overall cost

of capital in each of these nations during the same

period?

‘‘(3) To what extent do high capital costs in general

inhibit investment in projects with long-term payoffs, such as the development and commercialization

of new technology?

‘‘(4) To what extent does the structure of the financial services industry in the United States affect the

flow of capital to advanced technology investment,

and to what extent do current practices in the equity

markets raise the cost of capital and inhibit the

availability of capital to fund research and development, purchase advanced manufacturing equipment,

and fund other investments necessary to commercialize advanced technology?

‘‘(5) In what ways do Government regulations influence the cost of capital in the United States?

‘‘(6) To what extent have national differences in

capital costs facilitated the foreign acquisition of

technology-based United States companies?

‘‘(7) What macroeconomic and other policies would

promote greater investment in advanced manufacturing techniques, in research and development, and in

other activities necessary to commercialize and

produce new technologies?

‘‘(8) What specific policies should the Federal Government follow in order to reduce the cost of capital

for United States companies to levels that are near

parity with those faced by the Nation’s principal

trading partners?

‘‘(c) MEMBERSHIP.—(1) The Commission shall be composed of 9 members who are eminent in such fields as

advanced technology, manufacturing, finance, and

international economics and who are appointed as follows:

‘‘(A) 3 individuals appointed by the President, one

of whom shall chair the Commission.

‘‘(B) 3 individuals appointed by the Speaker of the

House of Representatives, 1 of whom shall be appointed upon the recommendation of the minority

leader of the House of Representatives.

‘‘(C) 3 individuals appointed by the President pro

tempore of the Senate, 2 of whom shall be appointed

upon the recommendation of the majority leader of

the Senate and 1 of whom shall be appointed upon the

recommendation of the minority leader of the Senate.

‘‘(2) Each member shall be appointed for the life of

the Commission. A vacancy in the Commission shall be

filled in the manner in which the original appointment

was made.

‘‘(d) PROCEDURES.—(1) The chairman shall call the

first meeting of the Commission within 90 days after

the date of enactment of this Act [Feb. 14, 1992].

‘‘(2) Recommendations of the Commission shall require the approval of three-quarters of the members of

the Commission.

‘‘(3) The Commission may use such personnel detailed

from Federal agencies as may be necessary to enable it

to carry out its duties.

‘‘(4) Members of the Commission, other than full-time

employees of the Federal Government, while attending

meetings of the Commission while away from their

homes or regular places of business, shall be allowed

travel expenses in accordance with subchapter I of

chapter 57 of title 5, United States Code.

‘‘(e) REPORTS.—The Commission shall, within 1 year

after the date of enactment of this Act [Feb. 14, 1992],

submit to the President and Congress a report containing legislative and other recommendations with respect

to the issues addressed under subsection (b).

‘‘(f) CONSULTATION.—The Commission shall consult,

as appropriate, with the Commission on Technology

and Procurement established by section 505 of this Act

[set out below].

‘‘(g) TERMINATION.—The Commission shall terminate

6 months after the submission of its report under subsection (e).

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There are

authorized to be appropriated to carry out this section

such sums as may be necessary for the fiscal years 1992

and 1993.’’

RESEARCH, DEVELOPMENT, TECHNOLOGY UTILIZATION,

AND GOVERNMENT PROCUREMENT POLICY

Pub. L. 102–245, title V, §505, Feb. 14, 1992, 106 Stat. 25,

provided that:

‘‘(a) ESTABLISHMENT OF COMMISSION.—The Secretary,

in consultation with the Administrator of the Office of

Federal Procurement Policy, shall establish a Commission on Technology and Procurement (hereafter in this

section referred to as the ‘Commission’), for the purposes of analyzing the effect of Federal Government

procurement laws, procedures, and policies on the development of advanced technologies within the United

States and making recommendations on how Federal

policy could be changed to promote further the development of advanced technologies.

‘‘(b) ISSUES.—The Commission shall address the following issues:

‘‘(1) To what extent, if any, should Federal Government technology purchase strategies be used to give
Page 1757 TITLE 15—COMMERCE AND TRADE § 3701

domestic suppliers a competitive advantage in new

generations of existing technologies and in initial

market penetration for new technologies?

‘‘(2) Under what conditions can Federal Government purchases of advanced technology-based products be based on performance specifications rather

than on product specifications? Should Federal Government procurement first look to the commercial

markets for products that will meet performance

specifications before purchasing a unique product

that has to be developed?

‘‘(3) How can the Federal Government procurement

laws, practices, and procedures be used as a strategic

tool to foster the use of emerging technologies?

‘‘(4) How can the Federal Government ensure that

its suppliers adopt the principles embodied in the

Malcolm Baldrige National Quality Award?

‘‘(5) Should Federal Government procurement practices include cooperative efforts between the supplier

and the Federal entity to develop products so as to be

more easily marketed on a commercial basis? Should

a program for the exchange of technical personnel to

foster innovation in product development be part of

such practices?

‘‘(6) To what extent, if any, should Federal Government documents specify standards that are beneficial

to domestic suppliers, aid the compatibility of advanced technologies, and speed the commercial acceptance of those technologies, and what would be

the role of the Institute in such an effort?

‘‘(7) Should Federal Government procurement be

linked to the Advanced Technology Program and to

technology transfer activities so that specification

development can incorporate the latest technical advances available?

‘‘(8) To what extent should worldwide, state of the

art technology be required in Federal Government

procurement?

‘‘(c) MEMBERSHIP AND PROCEDURES.—(1) The Commission shall be composed of 15 members, 8 of whom shall

constitute a quorum.

‘‘(2) The Secretary, the Administrator of the Office of

Federal Procurement Policy, the Director of the Office

of Science and Technology Policy, the Secretary of Defense, and the Administrator of General Services, or

their designees who serve in executive level positions,

shall serve as members of the Commission.

‘‘(3) The Secretary shall appoint as members of the

Commission, from among individuals not employed by

the Federal Government—

‘‘(A) 4 members who are eminent in advanced technology businesses representing manufacturing and

services industries, including at least 1 member representing labor;

‘‘(B) 3 members who are eminent in the fields of

technology and international economic development;

and

‘‘(C) with the concurrence of the Administrator of

the Office of Federal Procurement Policy, 3 members

who are eminent in the field of Federal Government

procurement.

‘‘(4) The Secretary shall appoint a Commission chairman from among the members of the Commission. The

chairman shall call the first meeting of the Commission within 90 days after the date of enactment of this

Act [Feb. 14, 1992].

‘‘(5) The Secretary and the Administrator of the Office of Federal Procurement Policy shall provide such

staff as may be required by the Commission to carry

out its responsibilities.

‘‘(6) Members of the Commission, other than full-time

employees of the Federal Government, while attending

meetings of the Commission or otherwise performing

duties of the Commission while away from their homes

or regular places of business, shall be allowed travel expenses in accordance with subchapter I of chapter 57 of

title 5, United States Code.

‘‘(d) REPORTS.—(1) The Commission shall, within 1

year after the date of enactment of this Act [Feb. 14,

1992], submit to the Secretary, the Administrator of the

Office of Federal Procurement Policy, the President,

and Congress a report containing preliminary recommendations with respect to the issues addressed under

subsection (b).

‘‘(2) The Commission shall, within 2 years after the

date of enactment of this Act, submit to the Secretary

and Congress a final report containing final recommendations with respect to the issues addressed under

subsection (b).

‘‘(e) CONSULTATION.—The Commission shall consult,

as appropriate, with the National Commission on Reducing Capital Costs for Emerging Technology.

‘‘(f) TERMINATION.—The Commission shall terminate 6

months after the submission of its final report under

subsection (d)(2).

‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are

authorized to be appropriated to carry out this section

such sums as may be necessary for the fiscal years 1992,

1993, and 1994.’’

STUDY OF TESTING AND CERTIFICATION

Pub. L. 102–245, title V, §508, Feb. 14, 1992, 106 Stat. 29,

provided that:

‘‘(a) CONTRACT WITH NATIONAL RESEARCH COUNCIL.—

Within 90 days after the date of enactment of this Act

[Feb. 14, 1992] and within available appropriations, the

Secretary shall enter into a contract with the National

Research Council for a thorough review of international product testing and certification issues. The

National Research Council will be asked to address the

following issues and make recommendations as appropriate:

‘‘(1) The impact on United States manufacturers,

testing and certification laboratories, certification

organizations, and other affected bodies of the European Community’s plans for testing and certification

of regulated and nonregulated products of non-European origin.

‘‘(2) Ways for United States manufacturers to gain

acceptance of their products in the European Community and in other foreign countries and regions.

‘‘(3) The feasibility and consequences of having mutual recognition agreements between testing and certification organizations in the United States and

those of major trading partners on the accreditation

of testing and certification laboratories and on quality control requirements.

‘‘(4) Information coordination regarding product acceptance and conformity assessment mechanisms between the United States and foreign governments.

‘‘(5) The appropriate Federal, State, and private

roles in coordination and oversight of testing, certification, accreditation, and quality control to support

national and international trade.

‘‘(b) MEMBERSHIP.—In selecting the members of the

review panel, the National Research Council shall consult with and draw from, among others, laboratory accreditation organizations, Federal and State government agencies involved in testing and certification,

professional societies, trade associations, small business, and labor organizations.

‘‘(c) REPORT.—A report based on the findings and recommendations of the review panel shall be submitted

to the Secretary, the President, and Congress within 18

months after the Secretary signs the contract with the

National Research Council.’’

CONGRESSIONAL FINDINGS AND PURPOSES; 1989

AMENDMENT

Pub. L. 101–189, div. C, title XXXI, §3132, Nov. 29, 1989,

103 Stat. 1674, provided that:

‘‘(a) FINDINGS.—Congress finds that—

‘‘(1) technology advancement is a key component in

the growth of the United States industrial economy,

and a strong industrial base is an essential element of

the security of this country;

‘‘(2) there is a need to enhance United States competitiveness in both domestic and international markets;
§ 3702 TITLE 15—COMMERCE AND TRADE Page 1758

‘‘(3) innovation and the rapid application of commercially valuable technology are assuming a more

significant role in near-term marketplace success;

‘‘(4) the Federal laboratories and other facilities

have outstanding capabilities in a variety of advanced technologies and skilled scientists, engineers,

and technicians who could contribute substantially

to the posture of United States industry in international competition;

‘‘(5) improved opportunities for cooperative research and development agreements between contractor-managers of certain Federal laboratories and the

private sector in the United States, consistent with

the program missions at those facilities, particularly

the national security functions involved in atomic

energy defense activities, would contribute to our national well-being; and

‘‘(6) more effective cooperation between those laboratories and the private sector in the United States

is required to provide speed and certainty in the technology transfer process.

‘‘(b) PURPOSES.—The purposes of this part [part C

(§§3131–3133) of title XXXI of div. C of Pub. L. 101–189,

see Short Title of 1989 Amendment note above] are to—

‘‘(1) enhance United States national security by

promoting technology transfer between Governmentowned, contractor-operated laboratories and the private sector in the United States; and

‘‘(2) enhance collaboration between universities,

the private sector, and Government-owned, contractor-operated laboratories in order to foster the development of technologies in areas of significant economic potential.’’

EX. ORD. NO. 13185. TO STRENGTHEN THE FEDERAL

GOVERNMENT-UNIVERSITY RESEARCH PARTNERSHIP

Ex. Ord. No. 13185, Dec. 28, 2000, 66 F.R. 701, provided:

By the authority vested in me as President by the

Constitution and the laws of the United States of

America, and in order to keep the Federal GovernmentUniversity research partnership strong, it is hereby ordered as follows:

SECTION 1. Principles of the Government-University Partnership. The partnership in science and technology that

has evolved between the Federal Government and

American universities has yielded benefits that are

vital to each. It continues to prove exceptionally productive, successfully promoting the discovery of knowledge, stimulating technological innovation, improving

the quality of life, educating and training the next generation of scientists and engineers, and contributing to

America’s economic prosperity and national security.

In order to reaffirm and strengthen this partnership,

this order sets forth the following guiding and operating principles that are fully described in the April 1999

National Science and Technology Council report, ‘‘Renewing the Government-University Partnership.’’

These principles shall provide the framework for the

development and analysis of all future Federal policies,

rules, and regulations for the Federal Government-University research partnership.

(a) The guiding principles that shall govern interactions between the Federal Government and universities that perform research are:

(1) Research is an investment in the future;

(2) The integration of research and education is vital;

(3) Excellence is promoted when investments are

guided by merit review; and

(4) Research must be conducted with integrity.

(b) The operating principles that shall assist agencies, universities, individual researchers, and auditing

and regulatory bodies in implementing the guiding

principles are:

(1) Agency cost-sharing policies and practices must

be transparent;

(2) Partners should respect the merit review process;

(3) Agencies and universities should manage research

in a cost-efficient manner;

(4) Accountability and accounting are not the same;

(5) The benefits of simplicity in policies and practices

should be weighed against the costs;

(6) Change should be justified by need and the process

made transparent.

(c) Each executive branch department or agency that

supports research at universities shall regularly review

its existing policies and procedures to ensure that they

meet the spirit and intent of the guiding and operating

principles stated above.

SEC. 2. Office of Science and Technology (OSTP) Review

of the Government-University Research Partnership. (a)

The OSTP, in conjunction with the National Science

and Technology Council, shall conduct a regular review

of the Government-University research partnership and

prepare a report on the status of the partnership. The

OSTP should receive input from all departments or

agencies that have a major impact on the GovernmentUniversity partnership through their support of research and education, policy making, regulatory activities, and research administration. In addition, OSTP

may seek the input of the National Science Board and

the President’s Committee of Advisors for Science and

Technology, as well as other stakeholders, such as

State and local governments, industry, the National

Academy of Sciences, and the Federal Demonstration

Partnership.

(b) The purpose of the review and the report is to determine the overall health of the Government-University research partnership, being mindful of the guiding

and operating principles stated above. The report

should include recommendations on how to improve the

Government-University partnership.

(c) The Director of OSTP shall deliver the report to

the President.

SEC. 3. Judicial Review. This order does not create any

enforceable rights against the United States, its agencies, its officers, or any person.

WILLIAM J. CLINTON.

§ 3702. Purpose

It is the purpose of this chapter to improve the

economic, environmental, and social well-being

of the United States by—

(1) establishing organizations in the executive branch to study and stimulate technology;

(2) promoting technology development

through the establishment of cooperative research centers;

(3) stimulating improved utilization of federally funded technology developments, including inventions, software, and training technologies, by State and local governments and

the private sector;

(4) providing encouragement for the development of technology through the recognition of

individuals and companies which have made

outstanding contributions in technology; and

(5) encouraging the exchange of scientific

and technical personnel among academia, industry, and Federal laboratories.

(Pub. L. 96–480, §3, Oct. 21, 1980, 94 Stat. 2312;

Pub. L. 99–502, §9(b)(1), (f)(2), Oct. 20, 1986, 100

Stat. 1795, 1797.)

AMENDMENTS

1986—Par. (2). Pub. L. 99–502, §9(b)(1), substituted ‘‘cooperative research centers’’ for ‘‘centers for industrial

technology’’.

Par. (3). Pub. L. 99–502, §9(f)(2), inserted ‘‘, including

inventions, software, and training technologies,’’.

§ 3703. Definitions

As used in this chapter, unless the context

otherwise requires, the term—

(1) ‘‘Secretary’’ means the Secretary of Commerce.
Page 1759 TITLE 15—COMMERCE AND TRADE § 3704

(2) ‘‘Centers’’ means the Cooperative Research Centers established under section 3705

or 3707 of this title.

(3) ‘‘Nonprofit institution’’ means an organization owned and operated exclusively for scientific or educational purposes, no part of the

net earnings of which inures to the benefit of

any private shareholder or individual.

(4) ‘‘Federal laboratory’’ means any laboratory, any federally funded research and development center, or any center established

under section 3705 or 3707 of this title that is

owned, leased, or otherwise used by a Federal

agency and funded by the Federal Government, whether operated by the Government or

by a contractor.

(5) ‘‘Supporting agency’’ means either the

Department of Commerce or the National

Science Foundation, as appropriate.

(6) ‘‘Federal agency’’ means any executive

agency as defined in section 105 of title 5 and

the military departments as defined in section

102 of such title, as well as any agency of the

legislative branch of the Federal Government.

(7) ‘‘Invention’’ means any invention or discovery which is or may be patentable or otherwise protected under title 35 or any novel variety of plant which is or may be protectable

under the Plant Variety Protection Act (7

U.S.C. 2321 et seq.).

(8) ‘‘Made’’ when used in conjunction with

any invention means the conception or first

actual reduction to practice of such invention.

(9) ‘‘Small business firm’’ means a small

business concern as defined in section 632 of

this title and implementing regulations of the

Administrator of the Small Business Administration.

(10) ‘‘Training technology’’ means computer

software and related materials which are developed by a Federal agency to train employees of such agency, including but not limited

to software for computer-based instructional

systems and for interactive video disc systems.

(11) ‘‘Clearinghouse’’ means the Clearinghouse for State and Local Initiatives on Productivity, Technology, and Innovation established by section 3704a of this title.

(Pub. L. 96–480, §4, Oct. 21, 1980, 94 Stat. 2312;

Pub. L. 99–502, §9(b)(2), (d), Oct. 20, 1986, 100 Stat.

1795, 1796; Pub. L. 100–418, title V, §5122(b), Aug.

23, 1988, 102 Stat. 1439; Pub. L. 100–519, title II,

§201(d)(1), Oct. 24, 1988, 102 Stat. 2594; Pub. L.

102–245, title III, §304, Feb. 14, 1992, 106 Stat. 20;

Pub. L. 106–404, §7(1), (2), Nov. 1, 2000, 114 Stat.

1745; Pub. L. 110–69, title III, §3002(c)(3), Aug. 9,

2007, 121 Stat. 586.)

REFERENCES IN TEXT

The Plant Variety Protection Act, referred to in par.

(7), is Pub. L. 91–577, Dec. 24, 1970, 84 Stat. 1542, as

amended, which is classified principally to chapter 57

(§2321 et seq.) of Title 7, Agriculture. For complete

classification of this Act to the Code, see Short Title

note set out under section 2321 of Title 7 and Tables.

AMENDMENTS

2007—Pub. L. 110–69 redesignated pars. (2) and (4) to

(13) as (1) and (2) to (11), respectively, and struck out

pars. (1) and (3) which defined ‘‘Office’’ and ‘‘Under Secretary’’, respectively.

2000—Pars. (4), (6). Pub. L. 106–404 made technical

amendments to references in original act which appear

in text as references to sections 3705 and 3707 of this

title.

1992—Par. (8). Pub. L. 102–245 inserted before period at

end ‘‘, as well as any agency of the legislative branch

of the Federal Government’’.

1988—Par. (1). Pub. L. 100–519, §201(d)(1)(A), substituted ‘‘Technology Policy’’ for ‘‘Productivity, Technology, and Innovation’’.

Par. (3). Pub. L. 100–519, §201(d)(1)(B), amended par. (3)

generally, substituting provisions defining ‘‘Under Secretary’’ for provisions defining ‘‘Assistant Secretary’’.

Par. (13). Pub. L. 100–418 added par. (13).

1986—Par. (1). Pub. L. 99–502, §9(b)(2)(A), substituted

‘‘Productivity, Technology, and Innovation’’ for ‘‘Industrial Technology’’.

Par. (3). Pub. L. 99–502, §9(b)(2)(B), substituted ‘‘‘Assistant Secretary’ means the Assistant Secretary for

Productivity, Technology, and Innovation’’ for ‘‘‘Director’ means the Director of the Office of Industrial Technology’’.

Par. (4). Pub. L. 99–502, §9(b)(2)(C), substituted ‘‘Cooperative Research Centers’’ for ‘‘Centers for Industrial

Technology’’.

Par. (6). Pub. L. 99–502, §9(b)(2)(D), (E), redesignated

par. (7) as (6), substituted ‘‘owned, leased, or otherwise

used by a Federal agency and funded’’ for ‘‘owned and

funded’’, and struck out former par. (6) which defined

‘‘Board’’ to mean the National Industrial Technology

Board established pursuant to section 3709 of this title.

Pars. (7) to (12). Pub. L. 99–502, §9(b)(2)(D), (d), redesignated pars. (7) and (8) as (6) and (7), respectively, and

added pars. (8) to (12).

§ 3704. Experimental Program to Stimulate Competitive Technology

(a) Program establishment

(1) In general

Beginning in fiscal year 1999, the Secretary

shall establish a program to be known as the

Experimental Program to Stimulate Competitive Technology (referred to in this subsection

as the ‘‘program’’). The purpose of the program shall be to strengthen the technological

competitiveness of those States that have historically received less Federal research and

development funds than those received by a

majority of the States.

(2) Arrangements

In carrying out the program, the Secretary

shall—

(A) enter into such arrangements as may

be necessary to provide for the coordination

of the program through the State committees established under the Experimental

Program to Stimulate Competitive Research

of the National Science Foundation; and

(B) cooperate with—

(i) any State science and technology

council established under the program

under subparagraph (A); and

(ii) representatives of small business

firms and other appropriate technologybased businesses.

(3) Grants and cooperative agreements

In carrying out the program, the Secretary

may make grants or enter into cooperative

agreements to provide for—

(A) technology research and development;

(B) technology transfer from university research;
§ 3704 TITLE 15—COMMERCE AND TRADE Page 1760

(C) technology deployment and diffusion;

and

(D) the strengthening of technological capabilities through consortia comprised of—

(i) technology-based small business

firms;

(ii) industries and emerging companies;

(iii) universities; and

(iv) State and local development agencies and entities.

(4) Requirements for making awards

(A) In general

In making awards under this subsection,

the Secretary shall ensure that the awards

are awarded on a competitive basis that includes a review of the merits of the activities that are the subject of the award.

(B) Matching requirement

The non-Federal share of the activities

(other than planning activities) carried out

under an award under this subsection shall

be not less than 25 percent of the cost of

those activities.

(5) Criteria for States

The Secretary shall establish criteria for

achievement by each State that participates

in the program. Upon the achievement of all

such criteria, a State shall cease to be eligible

to participate in the program.

(b) Coordination

To the extent practicable, in carrying out subsection (a), the Secretary shall coordinate the

program with other programs of the Department

of Commerce.

(c) Minority Serving Institution Digital and Wireless Technology Opportunity Program

(1) In general

The Secretary shall establish a Minority

Serving Institution Digital and Wireless Technology Opportunity Program that awards

grants, cooperative agreements, and contracts

to eligible institutions to enable the eligible

institutions in acquiring, and augmenting the

institutions’ use of, digital and wireless networking technologies to improve the quality

and delivery of educational services at eligible

institutions.

(2) Application and review procedures

(A) In general

To be eligible to receive a grant, cooperative agreement, or contract under this subsection, an eligible institution shall submit

an application to the Secretary at such

time, in such manner, and containing such

information as the Secretary may require.

Such application, at a minimum, shall include a description of how the funds will be

used, including a description of any digital

and wireless networking technology to be

acquired, and a description of how the institution will ensure that digital and wireless

networking technology will be made accessible to, and employed by, students, faculty,

and administrators. The Secretary, consistent with subparagraph (C) and in consultation with the advisory council established

under subparagraph (B), shall establish procedures to review such applications. The

Secretary shall publish the application requirements and review criteria in the Federal Register, along with a statement describing the availability of funds.

(B) Advisory council

The Secretary shall establish an advisory

council to advise the Secretary on the best

approaches to encourage maximum participation by eligible institutions in the program established under paragraph (1), and on

the procedures to review applications submitted to the program. In selecting the

members of the advisory council, the Secretary shall consult with representatives of

appropriate organizations, including representatives of eligible institutions, to ensure that the membership of the advisory

council includes representatives of minority

businesses and eligible institution communities. The Secretary shall also consult with

experts in digital and wireless networking

technology to ensure that such expertise is

represented on the advisory council.

(C) Review panels

Each application submitted under this

subsection by an eligible institution shall be

reviewed by a panel of individuals selected

by the Secretary to judge the quality and

merit of the proposal, including the extent

to which the eligible institution can effectively and successfully utilize the proposed

grant, cooperative agreement, or contract to

carry out the program described in paragraph (1). The Secretary shall ensure that

the review panels include representatives of

minority serving institutions and others

who are knowledgeable about eligible institutions and technology issues. The Secretary shall ensure that no individual assigned under this subsection to review any

application has a conflict of interest with regard to that application. The Secretary shall

take into consideration the recommendations of the review panel in determining

whether to award a grant, cooperative agreement, or contract to an eligible institution.

(3) Awards

(A) Limitation

An eligible institution that receives a

grant, cooperative agreement, or contract

under this subsection that exceeds $2,500,000

shall not be eligible to receive another

grant, cooperative agreement, or contract

under this subsection.

(B) Consortia

Grants, cooperative agreements, and contracts may only be awarded to eligible institutions. Eligible institutions may seek funding under this subsection for consortia,

which may include other eligible institutions, a State or a State educational agency,

local educational agencies, institutions of

higher education, community-based organizations, national nonprofit organizations, or

businesses, including minority businesses.
Page 1761 TITLE 15—COMMERCE AND TRADE § 3704

(C) Planning grants

The Secretary may provide funds to develop strategic plans to implement grants,

cooperative agreements, or contracts awarded under this subsection.

(D) Institutional diversity

In awarding grants, cooperative agreements, and contracts to eligible institutions,

the Secretary shall ensure, to the extent

practicable, that awards are made to all

types of institutions eligible for assistance

under this subsection.

(E) Need

In awarding funds under this subsection,

the Secretary shall give priority to the eligible institution with the greatest demonstrated need for assistance.

(4) Authorized activities

An eligible institution may use a grant, cooperative agreement, or contract awarded

under this subsection—

(A) to acquire equipment, instrumentation, networking capability, hardware and

software, digital network technology, wireless technology, and infrastructure to further the objective of the program described

in paragraph (1);

(B) to develop and provide training, education, and professional development programs, including faculty development, to increase the use of, and usefulness of, digital

and wireless networking technology;

(C) to provide teacher education, including

the provision of preservice teacher training

and in-service professional development at

eligible institutions, library and media specialist training, and preschool and teacher

aid certification to individuals who seek to

acquire or enhance technology skills in

order to use digital and wireless networking

technology in the classroom or instructional

process, including instruction in science,

mathematics, engineering, and technology

subjects;

(D) to obtain capacity-building technical

assistance, including through remote technical support, technical assistance workshops, and distance learning services; or

(E) to foster the use of digital and wireless

networking technology to improve research

and education, including scientific, mathematics, engineering, and technology instruction.

(5) Information dissemination

The Secretary shall convene an annual

meeting of eligible institutions receiving

grants, cooperative agreements, or contracts

under this subsection to foster collaboration

and capacity-building activities among eligible institutions.

(6) Matching requirement

The Secretary may not award a grant, cooperative agreement, or contract to an eligible

institution under this subsection unless such

institution agrees that, with respect to the

costs incurred by the institution in carrying

out the program for which the grant, cooperative agreement, or contract was awarded, such

institution shall make available, directly, or

through donations from public or private entities, non-Federal contributions in an amount

equal to 25 percent of the grant, cooperative

agreement, or contract awarded by the Secretary, or $500,000, whichever is the lesser

amount. The Secretary shall waive the matching requirement for any institution or consortium with no endowment, or an endowment

that has a current dollar value lower than

$50,000,000.

(7) Annual report and assessments

(A) Annual report required from recipients

Each eligible institution that receives a

grant, cooperative agreement, or contract

awarded under this subsection shall provide

an annual report to the Secretary on its use

of the grant, cooperative agreement, or contract.

(B) Independent assessments

(i) Contract to conduct assessments

Not later than 6 months after August 14,

2008, the Secretary shall enter into a contract with the National Academy of Public

Administration to conduct periodic assessments of the program established under

paragraph (1). The assessments shall be

conducted once every 3 years during the

10-year period following August 14, 2008.

(ii) Evaluations and recommendations

The assessments described in clause (i)

shall include—

(I) an evaluation of the effectiveness of

the program established under paragraph

(1) in improving the education and training of students, faculty, and staff at eligible institutions that have been awarded grants, cooperative agreements, or

contracts under the program;

(II) an evaluation of the effectiveness

of the program in improving access to,

and familiarity with, digital and wireless

networking technology for students, faculty, and staff at all eligible institutions;

(III) an evaluation of the procedures

established under paragraph (2)(A); and

(IV) recommendations for improving

the program, including recommendations concerning the continuing need for

Federal support.

(iii) Review of reports

In carrying out the assessments under

this subparagraph, the National Academy

of Public Administration shall review the

reports submitted to the Secretary under

subparagraph (A).

(iv) Report to Congress

Upon completion of each assessment

under this subparagraph, the Secretary

shall transmit the assessment to Congress

along with a summary of the Secretary’s

plans, if any, to implement the recommendations of the National Academy of

Public Administration.

(8) Definitions

In this subsection:
§ 3704 TITLE 15—COMMERCE AND TRADE Page 1762

(A) Digital and wireless networking technology

The term ‘‘digital and wireless networking

technology’’ means computer and communications equipment and software that facilitates the transmission of information in

a digital format.

(B) Eligible institution

The term ‘‘eligible institution’’ means an

institution that is—

(i) a part B institution, as defined in section 1061(2) of title 20, an institution identified in subparagraph (A), (B), or (C) of

section 1063b(e)(1) of title 20, or a consortium of institutions described in this

clause;

(ii) a Hispanic-serving institution, as defined in section 1101a(a)(5) of title 20;

(iii) a Tribal College or University, as defined in section 1059c(b)(3) of title 20;

(iv) an Alaska Native-serving institution, as defined in section 1059d(b) of title

20;

(v) a Native Hawaiian-serving institution, as defined in section 1059d(b) of title

20;

(vi) a Predominately Black Institution,

as defined in section 1059e of title 20;

(vii) a Native American-serving, nontribal institution, as defined in section

1059f of title 20;

(viii) an Asian American and Native

American Pacific Islander-serving institution, as defined in section 1059g of title 20;

or

(ix) a minority institution, as defined in

section 1067k of title 20, with an enrollment of needy students, as defined in section 1058(d) of title 20.

(C) Institution of higher education

The term ‘‘institution of higher education’’ has the meaning given the term in

section 1001 of title 20.

(D) Local educational agency

The term ‘‘local educational agency’’ has

the meaning given the term in section 7801

of title 20.

(E) Minority business

The term ‘‘minority business’’ includes

HUBZone small business concerns (as defined in section 632(p) of this title).

(F) Minority individual

The term ‘‘minority individual’’ means an

American Indian, Alaskan Native, Black

(not of Hispanic origin), Hispanic (including

persons of Mexican, Puerto Rican, Cuban,

and Central or South American origin), or

Pacific Islander individual.

(G) State

The term ‘‘State’’ has the meaning given

the term in section 7801 of title 20.

(H) State educational agency

The term ‘‘State educational agency’’ has

the meaning given the term in section 7801

of title 20.

(Pub. L. 96–480, §5, Oct. 21, 1980, 94 Stat. 2312;

Pub. L. 99–382, §2, Aug. 14, 1986, 100 Stat. 811;

Pub. L. 99–502, §9(b)(3)–(5), (e)(2)(A), Oct. 20, 1986,

100 Stat. 1795, 1797; Pub. L. 100–519, title II,

§201(a)–(c), (d)(2), Oct. 24, 1988, 102 Stat. 2593,

2594; Pub. L. 102–245, title III, §306, Feb. 14, 1992,

106 Stat. 20; Pub. L. 105–309, §9, Oct. 30, 1998, 112

Stat. 2938; Pub. L. 106–404, §7(3), Nov. 1, 2000, 114

Stat. 1745; Pub. L. 110–69, title III, §3002(a), Aug.

9, 2007, 121 Stat. 586; Pub. L. 110–315, title IX,

§971, Aug. 14, 2008, 122 Stat. 3473.)

AMENDMENTS

2008—Subsec. (c). Pub. L. 110–315 added subsec. (c).

2007—Pub. L. 110–69, §3002(a)(5), substituted ‘‘Experimental program to stimulate competitive technology’’

for ‘‘Commerce and technological innovation’’ in section catchline.

Subsec. (a). Pub. L. 110–69, §3002(a)(3)(B), (E), substituted ‘‘Program establishment’’ for ‘‘Experimental

Program to Stimulate Competitive Technology’’ in

heading and struck out ‘‘, acting through the Under

Secretary,’’ after ‘‘Secretary’’ wherever appearing in

text.

Pub. L. 110–69, §3002(a)(1), (2), redesignated subsec. (f)

as (a) and struck out former subsec. (a) which related

to the establishment of a Technology Administration

within the Department of Commerce.

Subsec. (a)(1). Pub. L. 110–69, §3002(a)(3)(A), substituted ‘‘Beginning in fiscal year 1999, the Secretary

shall establish’’ for ‘‘The Secretary, acting through the

Under Secretary, shall establish for fiscal year 1999’’.

Subsec. (a)(6). Pub. L. 110–69, §3002(a)(3)(C), redesignated par. (6) as subsec. (b).

Subsec. (a)(7). Pub. L. 110–69, §3002(a)(3)(D), struck

out par. (7) which required the Under Secretary of Commerce for Technology to submit a report on the Experimental Program to Stimulate Competitive Technology

no later than 90 days after Oct. 30, 1998.

Subsec. (b). Pub. L. 110–69, §3002(a)(1), (3)(C), (4), redesignated subsec. (a)(6) as (b), substituted ‘‘subsection

(a)’’ for ‘‘this subsection’’, and struck out former subsec. (b) which related to appointment of Under Secretary of Commerce for Technology and Assistant Secretary of Commerce for Technology Policy.

Subsecs. (c) to (e). Pub. L. 110–69, §3002(a)(1), struck

out subsecs. (c) to (e) which related, respectively, to duties of the Secretary, Japanese technical literature,

and a progress report required within 3 years after Oct.

21, 1980.

Subsec. (f). Pub. L. 110–69, §3002(a)(2), redesignated

subsec. (f) as (a).

2000—Subsec. (c)(11). Pub. L. 106–404 substituted

‘‘State or local governments’’ for ‘‘State of local governments’’.

1998—Subsec. (f). Pub. L. 105–309 added subsec. (f).

1992—Subsec. (c)(13) to (15). Pub. L. 102–245 added par.

(13) and redesignated former pars. (13) and (14) as (14)

and (15), respectively.

1988—Subsec. (a). Pub. L. 100–519, §201(a), amended

subsec. (a) generally. Prior to amendment, subsec. (a)

read as follows: ‘‘The Secretary shall establish and

maintain an Office of Productivity, Technology, and

Innovation in accordance with the provisions, findings,

and purposes of this chapter.’’

Subsec. (b). Pub. L. 100–519, §201(b), amended subsec.

(b) generally. Prior to amendment, subsec. (b) read as

follows: ‘‘The President shall appoint, by and with the

advice and consent of the Senate, an Assistant Secretary for Productivity, Technology, and Innovation.’’

Subsec. (c). Pub. L. 100–519, §201(c)(2), substituted

‘‘Under Secretary, as appropriate,’’ for ‘‘Assistant Secretary, on a continuing basis,’’ in introductory provisions.

Subsec. (c)(1) to (9). Pub. L. 100–519, §201(c)(1), (2),

added pars. (1) to (4) and redesignated former pars. (1)

to (5) as (5) to (9), respectively. Former pars. (6) to (9)

redesignated (10) to (13), respectively.

Subsec. (c)(10). Pub. L. 100–519, §201(c)(1), (3), redesignated former par. (6) as (10) and substituted ‘‘Under
Page 1763 TITLE 15—COMMERCE AND TRADE § 3704a

Secretary’’ for ‘‘Assistant Secretary’’. Former par. (10)

redesignated (14).

Subsec. (c)(11) to (14). Pub. L. 100–519, §201(c)(1), redesignated former pars. (7) to (10) as (11) to (14), respectively.

Subsec. (d)(1). Pub. L. 100–519, §201(d)(2), substituted

‘‘and the Under Secretary shall establish, and through

the National Technical Information Service and with

the cooperation of’’ for ‘‘shall establish and, through

the National Technical Information Service and’’.

1986—Subsec. (a). Pub. L. 99–502, §9(b)(3), substituted

‘‘Office of Productivity, Technology, and Innovation’’

for ‘‘Office of Industrial Technology’’.

Subsec. (b). Pub. L. 99–502, §9(b)(4), substituted ‘‘an

Assistant Secretary for Productivity, Technology, and

Innovation’’ for ‘‘a Director of the Office, who shall be

compensated at the rate provided for level V of the Executive Schedule in section 5316 of title 5’’.

Subsec. (c). Pub. L. 99–502, §9(b)(5)(A), substituted

‘‘the Assistant Secretary’’ for ‘‘the Director’’ in provisions preceding par. (1).

Subsec. (c)(6). Pub. L. 99–502, §9(b)(5)(A), substituted

‘‘the Assistant Secretary’’ for ‘‘the Director’’.

Subsec. (c)(7) to (10). Pub. L. 99–502, §9(b)(5)(B), (C),

added pars. (7) and (8) and redesignated former pars. (7)

and (8) as (9) and (10), respectively.

Subsec. (d). Pub. L. 99–382, §2(2), added subsec. (d).

Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 99–502, §9(e)(2)(A), which directed

the insertion of ‘‘(as then in effect)’’ in subsec. (d), was

executed to subsec. (e) to reflect the probable intent of

Congress in view of the redesignation of subsec. (d) as

(e) by Pub. L. 99–382.

Pub. L. 99–382, §2(1), redesignated subsec. (d) as (e).

CONSTRUCTION

Pub. L. 110–69, title III, §3002(b), Aug. 9, 2007, 121 Stat.

586, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall not be construed to eliminate the National Institute of Standards

and Technology or the National Technical Information

Service.’’

TRANSITION PROVISION

Pub. L. 100–519, title II, §201(e), Oct. 24, 1988, 102 Stat.

2594, provided that: ‘‘The individual serving as the Assistant Secretary of Commerce for Productivity, Technology, and Innovation immediately before the date of

enactment of this Act [Oct. 24, 1988] shall serve as Acting Assistant Secretary of Commerce for Technology

Policy until the Assistant Secretary takes office.’’

COMMERCIAL SPACE PROGRAMS

Pub. L. 100–519, title II, §201(f), as added by Pub. L.

100–685, title II, §219, Nov. 17, 1988, 102 Stat. 4095, provided that: ‘‘Nothing in this section [amending this section, sections 3703 and 3710 of this title, and section 5314

of Title 5, Government Organization and Employees,

and enacting provisions formerly set out as a note

above] authorizes the Department to establish an Office of Commercial Space Programs or to place such an

office into the Technology Administration without

prior authorization of the Congress.’’

§ 3704a. Clearinghouse for State and Local Initiatives on Productivity, Technology, and Innovation

(a) Establishment

There is established within the Office of Productivity, Technology, and Innovation a Clearinghouse for State and Local Initiatives on Productivity, Technology, and Innovation. The

Clearinghouse shall serve as a central repository

of information on initiatives by State and local

governments to enhance the competitiveness of

American business through the stimulation of

productivity, technology, and innovation and

Federal efforts to assist State and local governments to enhance competitiveness.

(b) Responsibilities

The Clearinghouse may—

(1) establish relationships with State and

local governments, and regional and multistate organizations of such governments,

which carry out such initiatives;

(2) collect information on the nature, extent,

and effects of such initiatives, particularly information useful to the Congress, Federal

agencies, State and local governments, regional and multistate organizations of such

governments, businesses, and the public

throughout the United States;

(3) disseminate information collected under

paragraph (2) through reports, directories,

handbooks, conferences, and seminars;

(4) provide technical assistance and advice

to such governments with respect to such initiatives, including assistance in determining

sources of assistance from Federal agencies

which may be available to support such initiatives;

(5) study ways in which Federal agencies, including Federal laboratories, are able to use

their existing policies and programs to assist

State and local governments, and regional and

multistate organizations of such governments,

to enhance the competitiveness of American

business;

(6) make periodic recommendations to the

Secretary, and to other Federal agencies upon

their request, concerning modifications in

Federal policies and programs which would

improve Federal assistance to State and local

technology and business assistance programs;

(7) develop methodologies to evaluate State

and local programs, and, when requested, advise State and local governments, and regional

and multistate organizations of such governments, as to which programs are most effective in enhancing the competitiveness of

American business through the stimulation of

productivity, technology, and innovation; and

(8) make use of, and disseminate, the nationwide study of State industrial extension programs conducted by the Secretary.

(c) Contracts

In carrying out subsection (b) of this section,

the Secretary may enter into contracts for the

purpose of collecting information on the nature,

extent, and effects of initiatives.

(Pub. L. 96–480, §6, as added Pub. L. 100–418, title

V, §5122(a)(2), Aug. 23, 1988, 102 Stat. 1438.)

CODIFICATION

Subsec. (d) of this section, which required the Secretary to prepare and transmit a triennial report to

Congress, including recommendations to the President,

Congress, and Federal agencies, on initiatives by State

and local governments to enhance the competitiveness

of American businesses through the stimulation of productivity, technology, and innovation, terminated, effective May 15, 2000, pursuant to section 3003 of Pub. L.

104–66, as amended, set out as a note under section 1113

of Title 31, Money and Finance. See, also, page 50 of

House Document No. 103–7.
§ 3704b TITLE 15—COMMERCE AND TRADE Page 1764

1So in original. Probably should be capitalized. 2See References in Text note below.

§ 3704b. National Technical Information Service

(a) Powers

(1) The Secretary of Commerce, acting

through the Director of the National Technical

Information Service (hereafter in this section

referred to as the ‘‘Director’’) is authorized to do

the following:

(A) Enter into such contracts, cooperative

agreements, joint ventures, and other transactions, in accordance with all relevant provisions of Federal law applicable to such contracts and agreements, and under reasonable

terms and conditions, as may be necessary in

the conduct of the business of the National

Technical Information Service (hereafter in

this section referred to as the ‘‘Service’’).

(B) In addition to the authority regarding

fees contained in section 2 of the Act entitled

‘‘An Act to provide for the dissemination of

technological, scientific, and engineering information to American business and industry,

and for other purposes’’ enacted September 9,

1950 (15 U.S.C. 1152), retain and, subject to appropriations Acts, utilize its net revenues to

the extent necessary to implement the plan

submitted under subsection (f)(3)(D) of this

section.

(C) Enter into contracts for the performance

of part or all of the functions performed by the

Promotion Division of the Service prior to October 24, 1988. The details of any such contract, and a statement of its effect on the operations and personnel of the Service, shall be

provided to the appropriate committees of the

Congress 30 days in advance of the execution

of such contract.

(D) Employ such personnel as may be necessary to conduct the business of the Service.

(E) For the period of October 1, 1991 through

September 30, 1992, only, retain and use all

earned and unearned monies heretofore or

hereafter received, including receipts, revenues, and advanced payments and deposits, to

fund all obligations and expenses, including

inventories and capital equipment.

An increase or decrease in the personnel of the

Service shall not affect or be affected by any

ceilings on the number or grade of personnel.

(2) The functions and activities of the Service

specified in subsection (e)(1) through (6) of this

section are permanent Federal functions to be

carried out by the Secretary through the Service and its employees, and shall not be transferred from the Service, by contract or otherwise, to the private sector on a permanent or

temporary basis without express approval of the

Congress. Functions or activities—

(A) for the procurement of supplies, materials, and equipment by the Service;

(B) referred to in paragraph (1)(C); or

(C) to be performed through joint ventures

or cooperative agreements which do not result

in a reduction in the Federal workforce of the

affected programs of the service,1

shall not be considered functions or activities

for purposes of this paragraph.

(3) For the purposes of this subsection, the

term ‘‘net revenues’’ means the excess of revenues and receipts from any source, other than

royalties and other income described in section

3710c(a)(4) 2 of this title, over operating expenses.

(4) Omitted.

(b) Director of the Service

The management of the Service shall be vested in a Director who shall report to the Director

of the National Institute of Standards and Technology and the Secretary of Commerce.

(c) Advisory Board

(1) There is established the Advisory Board of

the National Technical Information Service,

which shall be composed of a chairman and four

other members appointed by the Secretary.

(2) In appointing members of the Advisory

Board the Secretary shall solicit recommendations from the major users and beneficiaries of

the Service’s activities and shall select individuals experienced in providing or utilizing technical information.

(3) The Advisory Board shall review the general policies and operations of the Service, including policies in connection with fees and

charges for its services, and shall advise the Secretary and the Director with respect thereto.

(4) The Advisory Board shall meet at the call

of the Secretary, but not less often than once

each six months.

(d) Audits

The Secretary of Commerce shall provide for

annual independent audits of the Service’s financial statements beginning with fiscal year

1988, to be conducted in accordance with generally accepted accounting principles.

(e) Functions

The Secretary of Commerce, acting through

the Service, shall—

(1) establish and maintain a permanent repository of nonclassified scientific, technical,

and engineering information;

(2) cooperate and coordinate its operations

with other Government scientific, technical,

and engineering information programs;

(3) make selected bibliographic information

products available in a timely manner to depository libraries as part of the Depository Library Program of the Government Printing Office;

(4) in conjunction with the private sector as

appropriate, collect, translate into English,

and disseminate unclassified foreign scientific,

technical, and engineering information;

(5) implement new methods or media for the

dissemination of scientific, technical, and engineering information, including producing

and disseminating information products in

electronic format; and

(6) carry out the functions and activities of

the Secretary under the Act entitled ‘‘An Act

to provide for the dissemination of technological, scientific, and engineering information to American business and industry, and

for other purposes’’ enacted September 9, 1950

[15 U.S.C. 1151 et seq.], and the functions and

activities of the Secretary performed through

the National Technical Information Service as

of October 24, 1988, under this chapter.
Page 1765 TITLE 15—COMMERCE AND TRADE § 3704b–1

(f) Notification of Congress

(1) The Secretary of Commerce and the Director shall keep the appropriate committees of

Congress fully and currently informed about all

activities related to the carrying out of the

functions of the Service, including changes in

fee policies.

(2) Within 90 days after October 24, 1988, the

Secretary of Commerce shall submit to the Congress a report on the current fee structure of the

Service, including an explanation of the basis

for the fees, taking into consideration all applicable costs, and the adequacy of the fees, along

with reasons for the declining sales at the Service of scientific, technical, and engineering publications. Such report shall explain any actions

planned or taken to increase such sales at reasonable fees.

(3) The Secretary shall submit an annual report to the Congress which shall—

(A) summarize the operations of the Service

during the preceding year, including financial

details and staff levels broken down by major

activities;

(B) detail the operating plan of the Service,

including specific expense and staff needs, for

the upcoming year;

(C) set forth details of modernization

progress made in the preceding year;

(D) describe the long-term modernization

plans of the Service; and

(E) include the results of the most recent annual audit carried out under subsection (d) of

this section.

(4) The Secretary shall also give the Congress

detailed advance notice of not less than 30 calendar days of—

(A) any proposed reduction-in-force;

(B) any joint venture or cooperative agreement which involves a financial incentive to

the joint venturer or contractor; and

(C) any change in the operating plan submitted under paragraph (3)(B) which would result

in a variation from such plan with respect to

expense levels of more than 10 percent.

(Pub. L. 100–519, title II, §212, Oct. 24, 1988, 102

Stat. 2594; Pub. L. 102–140, title II, Oct. 28, 1991,

105 Stat. 804; Pub. L. 102–245, title V, §506(c),

Feb. 14, 1992, 106 Stat. 27; Pub. L. 110–161, div. B,

title I, §109, Dec. 26, 2007, 121 Stat. 1893.)

REFERENCES IN TEXT

This section, referred to in subsec. (a)(1), was in the

original ‘‘this subtitle’’, meaning subtitle B (§§211, 212)

of title II of Pub. L. 100–519, Oct. 24, 1988, 102 Stat. 2594,

which enacted section 3704b of this title and amended

section 3710 of this title. For complete classification of

this subtitle to the Code, see Short Title of 1988 Amendment note set out under section 3701 of this title and

Tables.

Section 3710c(a)(4) of this title, referred to in subsec.

(a)(3), was in the original a reference to section 13(a)(4)

of the Stevenson-Wydler Technology Innovation Act of

1980 which was translated as reading section 14(a)(4) of

the Act to reflect the probable intent of Congress and

the renumbering of section 13 of the Act as section 14

by section 5122(a)(1) of Pub. L. 100–418.

The Act entitled ‘‘An Act to provide for the dissemination of technological, scientific, and engineering information to American business and industry, and for

other purposes’’ enacted September 9, 1950, referred to

in subsec. (e)(6), is act Sept. 9, 1950, ch. 936, 64 Stat. 823,

as amended, which is classified generally to chapter 23

(§1151 et seq.) of this title. For complete classification

of this Act to the Code, see Tables.

CODIFICATION

Section was enacted as part of the National Technical Information Act of 1988, and not as part of the

Stevenson-Wydler Technology Innovation Act of 1980

which comprises this chapter.

Subsec. (a)(4) of this section repealed subsec. (h) of

section 3710 of this title.

AMENDMENTS

2007—Subsec. (b). Pub. L. 110–161 substituted ‘‘Director of the National Institute of Standards and Technology’’ for ‘‘Under Secretary of Commerce for Technology’’.

1992—Subsec. (e)(5). Pub. L. 102–245 inserted

‘‘, including producing and disseminating information

products in electronic format’’ after ‘‘engineering information’’.

1991—Subsec. (a)(1)(E). Pub. L. 102–140 added subpar.

(E).

TERMINATION OF ADVISORY BOARDS

Advisory boards established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a board established by the President

or an officer of the Federal Government, such board is

renewed by appropriate action prior to the expiration

of such 2-year period, or in the case of a board established by the Congress, its duration is otherwise provided by law. See sections 3(2) and 14 of Pub. L. 92–463,

Oct. 6, 1972, 86 Stat. 770, 776, set out in the Appendix to

Title 5, Government Organization and Employees.

NATIONAL TECHNICAL INFORMATION SERVICE REVOLVING

FUND

Pub. L. 102–395, title II, Oct. 6, 1992, 106 Stat. 1853, provided that: ‘‘For establishment of a National Technical

Information Service Revolving Fund, $8,000,000 without

fiscal year limitation: Provided, That unexpended balances in Information Products and Services shall be

transferred to and merged with this account, to remain

available until expended. Notwithstanding 15 U.S.C.

1525 and 1526, all payments collected by the National

Technical Information Service in performing its activities authorized by chapters 23 and 63 of title 15 of the

United States Code shall be credited to this Revolving

Fund. Without further appropriations action, all expenses incurred in performing the activities of the National Technical Information Service, including modernization, capital equipment and inventory, shall be

paid from the fund. A business-type budget for the fund

shall be prepared in the manner prescribed by 31 U.S.C.

9103.’’

§ 3704b–1. Recovery of operating costs through

fee collections

Operating costs for the National Technical Information Service associated with the acquisition, processing, storage, bibliographic control,

and archiving of information and documents

shall be recovered primarily through the collection of fees.

(Pub. L. 102–245, title I, §103(c), Feb. 14, 1992, 106

Stat. 8.)

CODIFICATION

Section was enacted as part of the American Technology Preeminence Act of 1991, and not as part of the

Stevenson-Wydler Technology Innovation Act of 1980

which comprises this chapter.
§ 3704b–2 TITLE 15—COMMERCE AND TRADE Page 1766

§ 3704b–2. Transfer of Federal scientific and technical information

(a) Transfer

The head of each Federal executive department or agency shall transfer in a timely manner to the National Technical Information Service unclassified scientific, technical, and engineering information which results from federally funded research and development activities

for dissemination to the private sector, academia, State and local governments, and Federal agencies. Only information which would

otherwise be available for public dissemination

shall be transferred under this subsection. Such

information shall include technical reports and

information, computer software, application assessments generated pursuant to section 3710(c)

of this title, and information regarding training

technology and other federally owned or originated technologies. The Secretary shall issue

regulations within one year after February 14,

1992, outlining procedures for the ongoing transfer of such information to the National Technical Information Service.

(b) Omitted

(Pub. L. 102–245, title I, §108, Feb. 14, 1992, 106

Stat. 13.)

CODIFICATION

Subsec. (b) of this section, which required the Secretary, as part of the annual report required under section 3704b(f)(3) of this title, to report to Congress on the

status of efforts under this section to ensure access to

Federal scientific and technical information by the

public, was omitted because of termination of the annual report. See Codification note set out after section

3704b of this title.

Section was enacted as part of the American Technology Preeminence Act of 1991, and not as part of the

Stevenson-Wydler Technology Innovation Act of 1980

which comprises this chapter.

§ 3705. Cooperative Research Centers

(a) Establishment

The Secretary shall provide assistance for the

establishment of Cooperative Research Centers.

Such Centers shall be affiliated with any university, or other nonprofit institution, or group

thereof, that applies for and is awarded a grant

or enters into a cooperative agreement under

this section. The objective of the Centers is to

enhance technological innovation through—

(1) the participation of individuals from industry and universities in cooperative technological innovation activities;

(2) the development of the generic research

base, important for technological advance and

innovative activity, in which individual firms

have little incentive to invest, but which may

have significant economic or strategic importance, such as manufacturing technology;

(3) the education and training of individuals

in the technological innovation process;

(4) the improvement of mechanisms for the

dissemination of scientific, engineering, and

technical information among universities and

industry;

(5) the utilization of the capability and expertise, where appropriate, that exists in Federal laboratories; and

(6) the development of continuing financial

support from other mission agencies, from

State and local government, and from industry and universities through, among other

means, fees, licenses, and royalties.

(b) Activities

The activities of the Centers shall include, but

need not be limited to—

(1) research supportive of technological and

industrial innovation including cooperative

industry-university research;

(2) assistance to individuals and small businesses in the generation, evaluation, and development of technological ideas supportive of

industrial innovation and new business ventures;

(3) technical assistance and advisory services to industry, particularly small businesses;

and

(4) curriculum development, training, and

instruction in invention, entrepreneurship,

and industrial innovation.

Each Center need not undertake all of the activities under this subsection.

(c) Requirements

Prior to establishing a Center, the Secretary

shall find that—

(1) consideration has been given to the potential contribution of the activities proposed

under the Center to productivity, employment, and economic competitiveness of the

United States;

(2) a high likelihood exists of continuing

participation, advice, financial support, and

other contributions from the private sector;

(3) the host university or other nonprofit institution has a plan for the management and

evaluation of the activities proposed within

the particular Center, including:

(A) the agreement between the parties as

to the allocation of patent rights on a nonexclusive, partially exclusive, or exclusive

license basis to and inventions conceived or

made under the auspices of the Center; and

(B) the consideration of means to place the

Center, to the maximum extent feasible, on

a self-sustaining basis;

(4) suitable consideration has been given to

the university’s or other nonprofit institution’s capabilities and geographical location;

and

(5) consideration has been given to any effects upon competition of the activities proposed under the Center.

(d) Planning grants

The Secretary is authorized to make available

nonrenewable planning grants to universities or

nonprofit institutions for the purpose of developing a plan required under subsection (c)(3) of

this section.

(e) Research and development utilization

In the promotion of technology from research

and development efforts by Centers under this

section, chapter 18 of title 35 shall apply to the

extent not inconsistent with this section.

(Pub. L. 96–480, §7, formerly §6, Oct. 21, 1980, 94

Stat. 2313; Pub. L. 99–502, §9(b)(6)–(10), Oct. 20,
Page 1767 TITLE 15—COMMERCE AND TRADE § 3707

1986, 100 Stat. 1796; renumbered §7, Pub. L.

100–418, title V, §5122(a)(1), Aug. 23, 1988, 102

Stat. 1438.)

PRIOR PROVISIONS

A prior section 7 of Pub. L. 96–480 was renumbered

section 8 and is classified to section 3706 of this title.

AMENDMENTS

1986—Subsec. (a). Pub. L. 99–502, §9(b)(7), substituted

‘‘Cooperative Research Centers’’ for ‘‘Centers for Industrial Technology’’.

Subsec. (b)(1). Pub. L. 99–502, §9(b)(8), struck out

‘‘basic and applied’’ after ‘‘industry-university’’.

Subsec. (e). Pub. L. 99–502, §9(b)(9), amended subsec.

(e) generally. Prior to amendment, subsec. (e) provided

that a Center of Industrial Technology had the option

to acquire title to an invention conceived or made

under its auspices and supported by Federal funds, authorized supporting agency to require the Center to

grant licenses to the invention to responsible applicants in certain cases, and provided for judicial review

of licensing determinations by the supporting agency.

Subsec. (f). Pub. L. 99–502, §9(b)(10), struck out subsec. (f) which read as follows: ‘‘The supporting agency

may request the Attorney General’s opinion whether

the proposed joint research activities of a Center would

violate any of the antitrust laws. The Attorney General

shall advise the supporting agency of his determination

and the reasons for it within 120 days after receipt of

such request.’’

MODEL PROGRAM

Pub. L. 101–510, div. A, title VIII, §827(b), Nov. 5, 1990,

104 Stat. 1607, as amended by Pub. L. 102–190, div. A,

title X, §1062(a)(2), Dec. 5, 1991, 105 Stat. 1475, provided

that:

‘‘(1) In the administration of applicable provisions of

the Stevenson-Wydler Technology Innovation Act of

1980 [15 U.S.C. 3701 et seq.] or section 5121(b) of the Omnibus Trade and Competitiveness Act of 1988 [Pub. L.

100–418, 15 U.S.C. 278l note], the Secretary of Commerce

shall develop, in consultation with the Secretary of Defense and the Secretary of Energy, model programs for

national defense laboratories.

‘‘(2) Model programs under this subsection shall involve Federal laboratories, small businesses, and partnership intermediaries. The purpose of the model programs is to demonstrate successful relationships between the Federal Government, State and local governments, and small businesses which encourage economic

growth through the commercial application of technology resulting from federally funded research.

‘‘(3) In this subsection, the term ‘national defense

laboratory’ means any laboratory, federally funded research and development center (FFRDC), or other center established under section 7 or 9 of the StevensonWydler Technology Innovation Act of 1980 (15 U.S.C.

3705, 3707) that is owned by the Federal Government,

whether operated by the Federal Government or by a

contractor, and—

‘‘(A) is under the jurisdiction of the Secretary of

Defense; or

‘‘(B) is under the jurisdiction of the Secretary of

Energy, but only if the primary function of the laboratory, FFRDC, or other center under the Secretary’s jurisdiction is to support the national defense activities of the Department of Defense or the

Department of Energy.’’

§ 3706. Grants and cooperative agreements

(a) In general

The Secretary may make grants and enter

into cooperative agreements according to the

provisions of this section in order to assist any

activity consistent with this chapter, including

activities performed by individuals. The total

amount of any such grant or cooperative agreement may not exceed 75 percent of the total cost

of the program.

(b) Eligibility and procedure

Any person or institution may apply to the

Secretary for a grant or cooperative agreement

available under this section. Application shall

be made in such form and manner, and with such

content and other submissions, as the Assistant

Secretary shall prescribe. The Secretary shall

act upon each such application within 90 days

after the date on which all required information

is received.

(c) Terms and conditions

(1) Any grant made, or cooperative agreement

entered into, under this section shall be subject

to the limitations and provisions set forth in

paragraph (2) of this subsection, and to such

other terms, conditions, and requirements as

the Secretary deems necessary or appropriate.

(2) Any person who receives or utilizes any

proceeds of any grant made or cooperative

agreement entered into under this section shall

keep such records as the Secretary shall by regulation prescribe as being necessary and appropriate to facilitate effective audit and evaluation, including records which fully disclose the

amount and disposition by such recipient of

such proceeds, the total cost of the program or

project in connection with which such proceeds

were used, and the amount, if any, of such costs

which was provided through other sources.

(Pub. L. 96–480, §8, formerly §7, Oct. 21, 1980, 94

Stat. 2315; renumbered §8 and amended Pub. L.

100–418, title V, §§5115(b)(1), 5122(a)(1), Aug. 23,

1988, 102 Stat. 1433, 1438.)

PRIOR PROVISIONS

A prior section 8 of Pub. L. 96–480 was renumbered

section 9 and is classified to section 3707 of this title.

AMENDMENTS

1988—Subsec. (b). Pub. L. 100–418, §5115(b)(1), substituted ‘‘Assistant Secretary’’ for ‘‘Director’’.

§ 3707. National Science Foundation Cooperative

Research Centers

(a) Establishment and provisions

The National Science Foundation shall provide assistance for the establishment of Cooperative Research Centers. Such Centers shall be

affiliated with a university, or other nonprofit

institution, or a group thereof. The objective of

the Centers is to enhance technological innovation as provided in section 3705(a) of this title

through the conduct of activities as provided in

section 3705(b) of this title.

(b) Planning grants

The National Science Foundation is authorized to make available nonrenewable planning

grants to universities of nonprofit institutions

for the purpose of developing the plan, as described under section 3705(c)(3) of this title.

(c) Terms and conditions

Grants, contracts, and cooperative agreements

entered into by the National Science Foundation in execution of the powers and duties of the

National Science Foundation under this chapter
§ 3708 TITLE 15—COMMERCE AND TRADE Page 1768

shall be governed by the National Science Foundation Act of 1950 [42 U.S.C. 1861 et seq.] and

other pertinent Acts.

(Pub. L. 96–480, §9, formerly §8, Oct. 21, 1980, 94

Stat. 2316; Pub. L. 99–502, §9(b)(11), (12), (e)(2)(B),

Oct. 20, 1986, 100 Stat. 1796, 1797; renumbered §9,

Pub. L. 100–418, title V, §5122(a)(1), Aug. 23, 1988,

102 Stat. 1438; Pub. L. 106–404, §7(4), Nov. 1, 2000,

114 Stat. 1745.)

REFERENCES IN TEXT

The National Science Foundation Act of 1950, referred

to in subsec. (c), is act May 10, 1950, ch. 171, 64 Stat. 149,

as amended, which is classified generally to chapter 16

(§1861 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the

Code, see Short Title note set out under section 1861 of

Title 42 and Tables.

PRIOR PROVISIONS

A prior section 9 of Pub. L. 96–480 was renumbered

section 10 and is classified to section 3708 of this title.

AMENDMENTS

2000—Subsecs. (a), (b). Pub. L. 106–404 made technical

amendments to references in original act which appear

in text as references to section 3705 of this title.

1986—Subsec. (a). Pub. L. 99–502 substituted ‘‘Cooperative Research Centers’’ for ‘‘Centers for Industrial

Technology’’ and struck out last sentence which read

as follows: ‘‘The provisions of sections 3705(e) and

3705(f) of this title shall apply to Centers established

under this section.’’

§ 3708. Administrative arrangements

(a) Coordination

The Secretary and the National Science Foundation shall, on a continuing basis, obtain the

advice and cooperation of departments and

agencies whose missions contribute to or are affected by the programs established under this

chapter, including the development of an agenda

for research and policy experimentation. These

departments and agencies shall include but not

be limited to the Departments of Defense, Energy, Education, Health and Human Services,

Housing and Urban Development, the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, Council of Economic Advisers, Council on Environmental Quality, and

Office of Science and Technology Policy.

(b) Cooperation

It is the sense of the Congress that departments and agencies, including the Federal laboratories, whose missions are affected by, or

could contribute to, the programs established

under this chapter, should, within the limits of

budgetary authorizations and appropriations,

support or participate in activities or projects

authorized by this chapter.

(c) Administrative authorization

(1) Departments and agencies described in subsection (b) of this section are authorized to participate in, contribute to, and serve as resources

for the Centers and for any other activities authorized under this chapter.

(2) The Secretary and the National Science

Foundation are authorized to receive moneys

and to receive other forms of assistance from

other departments or agencies to support activities of the Centers and any other activities authorized under this chapter.

(d) Cooperative efforts

The Secretary and the National Science Foundation shall, on a continuing basis, provide each

other the opportunity to comment on any proposed program of activity under section 3705,

3707, 3710, 3710d, 3711a, or 3712 of this title before

funds are committed to such program in order

to mount complementary efforts and avoid duplication.

(Pub. L. 96–480, §10, formerly §9, Oct. 21, 1980, 94

Stat. 2316; Pub. L. 99–502, §9(e)(2)(C), Oct. 20,

1986, 100 Stat. 1797; Pub. L. 100–107, §3(b), Aug. 20,

1987, 101 Stat. 727; renumbered §10 and amended

Pub. L. 100–418, title V, §5122(a)(1), (c), Aug. 23,

1988, 102 Stat. 1438, 1439; Pub. L. 102–240, title VI,

§6019, Dec. 18, 1991, 105 Stat. 2183.)

PRIOR PROVISIONS

A prior section 10 of Pub. L. 96–480 was renumbered

section 11 and is classified to section 3710 of this title.

Another prior section 10 of Pub. L. 96–480 related to

National Industrial Technology Board and was classified to section 3709 of this title, prior to repeal by section 9(a) of Pub. L. 99–502.

AMENDMENTS

1991—Subsec. (d). Pub. L. 102–240 made technical

amendment to reference to section 3712 of this title to

reflect renumbering of corresponding section of original act.

1988—Subsec. (d). Pub. L. 100–418, §5122(c), made technical amendment to references to sections 3705, 3707,

3710, 3710d, 3711a, and 3712 of this title to reflect renumbering of corresponding sections of original act.

1987—Subsec. (d). Pub. L. 100–107 inserted reference to

section 3711a of this title.

1986—Subsec. (d). Pub. L. 99–502 inserted references to

sections 3710 and 3710d of this title.

§ 3709. Repealed. Pub. L. 99–502, § 9(a), Oct. 20,

1986, 100 Stat. 1795

Section, Pub. L. 96–480, §10, Oct. 21, 1980, 94 Stat. 2317,

related to establishment, duties, membership, and

terms of National Industrial Technology Board.

§ 3710. Utilization of Federal technology

(a) Policy

(1) It is the continuing responsibility of the

Federal Government to ensure the full use of the

results of the Nation’s Federal investment in research and development. To this end the Federal

Government shall strive where appropriate to

transfer federally owned or originated technology to State and local governments and to

the private sector.

(2) Technology transfer, consistent with mission responsibilities, is a responsibility of each

laboratory science and engineering professional.

(3) Each laboratory director shall ensure that

efforts to transfer technology are considered

positively in laboratory job descriptions, employee promotion policies, and evaluation of the

job performance of scientists and engineers in

the laboratory.

(b) Establishment of Research and Technology

Applications Offices

Each Federal laboratory shall establish an Office of Research and technology Applications.
Page 1769 TITLE 15—COMMERCE AND TRADE § 3710

Laboratories having existing organizational

structures which perform the functions of this

section may elect to combine the Office of Research and Technology Applications within the

existing organization. The staffing and funding

levels for these offices shall be determined between each Federal laboratory and the Federal

agency operating or directing the laboratory,

except that (1) each laboratory having 200 or

more full-time equivalent scientific, engineering, and related technical positions shall provide

one or more full-time equivalent positions as

staff for its Office of Research and Technology

Applications, and (2) each Federal agency which

operates or directs one or more Federal laboratories shall make available sufficient funding,

either as a separate line item or from the agency’s research and development budget, to support the technology transfer function at the

agency and at its laboratories, including support

of the Offices of Research and Technology Applications. Furthermore, individuals filling positions in an Office of Research and Technology

Applications shall be included in the overall laboratory/agency management development program so as to ensure that highly competent

technical managers are full participants in the

technology transfer process.

(c) Functions of Research and Technology Applications Offices

It shall be the function of each Office of Research and Technology Applications—

(1) to prepare application assessments for selected research and development projects in

which that laboratory is engaged and which in

the opinion of the laboratory may have potential commercial applications;

(2) to provide and disseminate information

on federally owned or originated products,

processes, and services having potential application to State and local governments and to

private industry;

(3) to cooperate with and assist the National

Technical Information Service, the Federal

Laboratory Consortium for Technology Transfer, and other organizations which link the research and development resources of that laboratory and the Federal Government as a

whole to potential users in State and local

government and private industry;

(4) to provide technical assistance to State

and local government officials; and

(5) to participate, where feasible, in regional,

State, and local programs designed to facilitate or stimulate the transfer of technology

for the benefit of the region, State, or local jurisdiction in which the Federal laboratory is

located.

Agencies which have established organizational

structures outside their Federal laboratories

which have as their principal purpose the transfer of federally owned or originated technology

to State and local government and to the private sector may elect to perform the functions

of this subsection in such organizational structures. No Office of Research and Technology Applications or other organizational structures

performing the functions of this subsection shall

substantially compete with similar services

available in the private sector.

(d) Dissemination of technical information

The National Technical Information Service

shall—

(1) serve as a central clearinghouse for the

collection, dissemination and transfer of information on federally owned or originated technologies having potential application to State

and local governments and to private industry;

(2) utilize the expertise and services of the

National Science Foundation and the Federal

Laboratory Consortium for Technology Transfer; particularly in dealing with State and

local governments;

(3) receive requests for technical assistance

from State and local governments, respond to

such requests with published information

available to the Service, and refer such requests to the Federal Laboratory Consortium

for Technology Transfer to the extent that

such requests require a response involving

more than the published information available

to the Service;

(4) provide funding, at the discretion of the

Secretary, for Federal laboratories to provide

the assistance specified in subsection (c)(3) of

this section;

(5) use appropriate technology transfer

mechanisms such as personnel exchanges and

computer-based systems; and

(6) maintain a permanent archival repository and clearinghouse for the collection and

dissemination of nonclassified scientific, technical, and engineering information.

(e) Establishment of Federal Laboratory Consortium for Technology Transfer

(1) There is hereby established the Federal

Laboratory Consortium for Technology Transfer

(hereinafter referred to as the ‘‘Consortium’’)

which, in cooperation with Federal laboratories

and the private sector, shall—

(A) develop and (with the consent of the Federal laboratory concerned) administer techniques, training courses, and materials concerning technology transfer to increase the

awareness of Federal laboratory employees regarding the commercial potential of laboratory technology and innovations;

(B) furnish advice and assistance requested

by Federal agencies and laboratories for use in

their technology transfer programs (including

the planning of seminars for small business

and other industry);

(C) provide a clearinghouse for requests, received at the laboratory level, for technical

assistance from States and units of local governments, businesses, industrial development

organizations, not-for-profit organizations including universities, Federal agencies and laboratories, and other persons, and—

(i) to the extent that such requests can be

responded to with published information

available to the National Technical Information Service, refer such requests to that

Service, and

(ii) otherwise refer these requests to the

appropriate Federal laboratories and agencies;

(D) facilitate communication and coordination between Offices of Research and Technology Applications of Federal laboratories;
§ 3710 TITLE 15—COMMERCE AND TRADE Page 1770

(E) utilize (with the consent of the agency

involved) the expertise and services of the National Science Foundation, the Department of

Commerce, the National Aeronautics and

Space Administration, and other Federal

agencies, as necessary;

(F) with the consent of any Federal laboratory, facilitate the use by such laboratory of

appropriate technology transfer mechanisms

such as personnel exchanges and computerbased systems;

(G) with the consent of any Federal laboratory, assist such laboratory to establish programs using technical volunteers to provide

technical assistance to communities related to

such laboratory;

(H) facilitate communication and cooperation between Offices of Research and Technology Applications of Federal laboratories

and regional, State, and local technology

transfer organizations;

(I) when requested, assist colleges or universities, businesses, nonprofit organizations,

State or local governments, or regional organizations to establish programs to stimulate

research and to encourage technology transfer

in such areas as technology program development, curriculum design, long-term research

planning, personnel needs projections, and

productivity assessments;

(J) seek advice in each Federal laboratory

consortium region from representatives of

State and local governments, large and small

business, universities, and other appropriate

persons on the effectiveness of the program

(and any such advice shall be provided at no

expense to the Government); and

(K) work with the Director of the National

Institute on Disability and Rehabilitation Research to compile a compendium of current

and projected Federal Laboratory technologies

and projects that have or will have an intended or recognized impact on the available

range of assistive technology for individuals

with disabilities (as defined in section 3002 of

title 29), including technologies and projects

that incorporate the principles of universal design (as defined in section 3002 of title 29), as

appropriate.

(2) The membership of the Consortium shall

consist of the Federal laboratories described in

clause (1) of subsection (b) of this section and

such other laboratories as may choose to join

the Consortium. The representatives to the Consortium shall include a senior staff member of

each Federal laboratory which is a member of

the Consortium and a senior representative appointed from each Federal agency with one or

more member laboratories.

(3) The representatives to the Consortium

shall elect a Chairman of the Consortium.

(4) The Director of the National Institute of

Standards and Technology shall provide the

Consortium, on a reimbursable basis, with administrative services, such as office space, personnel, and support services of the Institute, as

requested by the Consortium and approved by

such Director.

(5) Each Federal laboratory or agency shall

transfer technology directly to users or representatives of users, and shall not transfer

technology directly to the Consortium. Each

Federal laboratory shall conduct and transfer

technology only in accordance with the practices and policies of the Federal agency which

owns, leases, or otherwise uses such Federal laboratory.

(6) Not later than one year after October 20,

1986, and every year thereafter, the Chairman of

the Consortium shall submit a report to the

President, to the appropriate authorization and

appropriation committees of both Houses of the

Congress, and to each agency with respect to

which a transfer of funding is made (for the fiscal year or years involved) under paragraph (7),

concerning the activities of the Consortium and

the expenditures made by it under this subsection during the year for which the report is

made. Such report shall include an annual independent audit of the financial statements of the

Consortium, conducted in accordance with generally accepted accounting principles.

(7)(A) Subject to subparagraph (B), an amount

equal to 0.008 percent of the budget of each Federal agency from any Federal source, including

related overhead, that is to be utilized by or on

behalf of the laboratories of such agency for a

fiscal year referred to in subparagraph (B)(ii)

shall be transferred by such agency to the National Institute of Standards and Technology at

the beginning of the fiscal year involved.

Amounts so transferred shall be provided by the

Institute to the Consortium for the purpose of

carrying out activities of the Consortium under

this subsection.

(B) A transfer shall be made by any Federal

agency under subparagraph (A), for any fiscal

year, only if the amount so transferred by that

agency (as determined under such subparagraph)

would exceed $10,000.

(C) The heads of Federal agencies and their

designees, and the directors of Federal laboratories, may provide such additional support for

operations of the Consortium as they deem appropriate.

(f) Agency reports on utilization

(1) In general

Each Federal agency which operates or directs one or more Federal laboratories or

which conducts activities under sections 207

and 209 of title 35 shall report annually to the

Office of Management and Budget, as part of

the agency’s annual budget submission, on the

activities performed by that agency and its

Federal laboratories under the provisions of

this section and of sections 207 and 209 of title

35.

(2) Contents

The report shall include—

(A) an explanation of the agency’s technology transfer program for the preceding

fiscal year and the agency’s plans for conducting its technology transfer function, including its plans for securing intellectual

property rights in laboratory innovations

with commercial promise and plans for managing its intellectual property so as to advance the agency’s mission and benefit the

competitiveness of United States industry;

and
Page 1771 TITLE 15—COMMERCE AND TRADE § 3710

(B) information on technology transfer activities for the preceding fiscal year, including—

(i) the number of patent applications

filed;

(ii) the number of patents received;

(iii) the number of fully-executed licenses which received royalty income in

the preceding fiscal year, categorized by

whether they are exclusive, partially-exclusive, or non-exclusive, and the time

elapsed from the date on which the license

was requested by the licensee in writing to

the date the license was executed;

(iv) the total earned royalty income including such statistical information as the

total earned royalty income, of the top 1

percent, 5 percent, and 20 percent of the licenses, the range of royalty income, and

the median, except where disclosure of

such information would reveal the amount

of royalty income associated with an individual license or licensee;

(v) what disposition was made of the income described in clause (iv);

(vi) the number of licenses terminated

for cause; and

(vii) any other parameters or discussion

that the agency deems relevant or unique

to its practice of technology transfer.

(3) Copy to Secretary; Attorney General; Congress

The agency shall transmit a copy of the report to the Secretary of Commerce and the Attorney General for inclusion in the annual report to Congress and the President required by

subsection (g)(2) of this section.

(4) Public availability

Each Federal agency reporting under this

subsection is also strongly encouraged to

make the information contained in such report available to the public through Internet

sites or other electronic means.

(g) Functions of Secretary

(1) The Secretary, in consultation with other

Federal agencies, may—

(A) make available to interested agencies

the expertise of the Department of Commerce

regarding the commercial potential of inventions and methods and options for commercialization which are available to the Federal

laboratories, including research and development limited partnerships;

(B) develop and disseminate to appropriate

agency and laboratory personnel model provisions for use on a voluntary basis in cooperative research and development arrangements;

and

(C) furnish advice and assistance, upon request, to Federal agencies concerning their cooperative research and development programs

and projects.

(2) REPORTS.—

(A) ANNUAL REPORT REQUIRED.—The Secretary, in consultation with the Attorney General and the Commissioner of Patents and

Trademarks, shall submit each fiscal year, beginning 1 year after November 1, 2000, a summary report to the President, the United

States Trade Representative, and the Congress

on the use by Federal agencies and the Secretary of the technology transfer authorities

specified in this chapter and in sections 207

and 209 of title 35.

(B) CONTENT.—The report shall—

(i) draw upon the reports prepared by the

agencies under subsection (f) of this section;

(ii) discuss technology transfer best practices and effective approaches in the licensing and transfer of technology in the context

of the agencies’ missions; and

(iii) discuss the progress made toward development of additional useful measures of

the outcomes of technology transfer programs of Federal agencies.

(C) PUBLIC AVAILABILITY.—The Secretary

shall make the report available to the public

through Internet sites or other electronic

means.

(3) Not later than one year after October 20,

1986, the Secretary shall submit to the President

and the Congress a report regarding—

(A) any copyright provisions or other types

of barriers which tend to restrict or limit the

transfer of federally funded computer software

to the private sector and to State and local

governments, and agencies of such State and

local governments; and

(B) the feasibility and cost of compiling and

maintaining a current and comprehensive inventory of all federally funded training software.

(h) Duplication of reporting

The reporting obligations imposed by this section—

(1) are not intended to impose requirements

that duplicate requirements imposed by the

Government Performance and Results Act of

1993 (31 U.S.C. 1101 note);

(2) are to be implemented in coordination

with the implementation of that Act; and

(3) are satisfied if an agency provided the information concerning technology transfer activities described in this section in its annual

submission under the Government Performance and Results Act of 1993 (31 U.S.C. 1101

note).

(i) Research equipment

The Director of a laboratory, or the head of

any Federal agency or department, may loan,

lease, or give research equipment that is excess

to the needs of the laboratory, agency, or department to an educational institution or nonprofit organization for the conduct of technical

and scientific education and research activities.

Title of ownership shall transfer with a gift

under this section.

(Pub. L. 96–480, §11, Oct. 21, 1980, 94 Stat. 2318; renumbered §10 and amended Pub. L. 99–502, §§3–5,

9(e)(1), Oct. 20, 1986, 100 Stat. 1787, 1789, 1791, 1797;

renumbered §11 and amended Pub. L. 100–418,

title V, §§5115(b)(2), 5122(a)(1), 5162(b), 5163(c)(1),

(3), Aug. 23, 1988, 102 Stat. 1433, 1438, 1450, 1451;

Pub. L. 100–519, title II, §§201(d)(3), 212(a)(4), Oct.

24, 1988, 102 Stat. 2594, 2595; Pub. L. 101–189, div.

C, title XXXI, §3133(e), Nov. 29, 1989, 103 Stat.

1679; Pub. L. 102–245, title III, §§301, 303, Feb. 14,
§ 3710 TITLE 15—COMMERCE AND TRADE Page 1772

1992, 106 Stat. 19, 20; Pub. L. 104–66, title III,

§3001(f), Dec. 21, 1995, 109 Stat. 734; Pub. L.

104–113, §§3, 9, Mar. 7, 1996, 110 Stat. 775, 779; Pub.

L. 105–394, title II, §212(d), Nov. 13, 1998, 112 Stat.

3655; Pub. L. 106–404, §§7(5), (6), 10(a), Nov. 1, 2000,

114 Stat. 1745–1747; Pub. L. 110–69, title III,

§3002(c)(4), Aug. 9, 2007, 121 Stat. 586.)

REFERENCES IN TEXT

The Government Performance and Results Act of

1993, referred to in subsec. (h), is Pub. L. 103–62, Aug. 3,

1993, 107 Stat. 285, which enacted section 306 of Title 5,

Government Organization and Employees, sections 1115

to 1119, 9703, and 9704 of Title 31, Money and Finance,

and sections 2801 to 2805 of Title 39, Postal Service,

amended section 1105 of Title 31, and enacted provisions

set out as notes under sections 1101 and 1115 of Title 31.

For complete classification of this Act to the Code, see

Short Title of 1993 Amendment note set out under section 1101 of Title 31 and Tables.

AMENDMENTS

2007—Subsec. (g)(1). Pub. L. 110–69 struck out

‘‘through the Under Secretary, and’’ after ‘‘The Secretary,’’ in introductory provisions.

2000—Subsec. (b). Pub. L. 106–404, §10(a)(1), struck out

at end ‘‘The agency head shall submit to Congress at

the time the President submits the budget to Congress

an explanation of the agency’s technology transfer program for the preceding year and the agency’s plans for

conducting its technology transfer function for the upcoming year, including plans for securing intellectual

property rights in laboratory innovations with commercial promise and plans for managing such innovations so as to benefit the competitiveness of United

States industry.’’

Subsec. (e)(1). Pub. L. 106–404, §7(5), substituted ‘‘in

cooperation with Federal laboratories’’ for ‘‘in cooperation with Federal Laboratories’’ in introductory provisions.

Subsec. (f). Pub. L. 106–404, §10(a)(2), added subsec. (f).

Subsec. (g)(2). Pub. L. 106–404, §10(a)(3), added par. (2)

and struck out former par. (2) which read as follows:

‘‘Two years after October 20, 1986, and every two years

thereafter, the Secretary shall submit a summary report to the President and the Congress on the use by

the agencies and the Secretary of the authorities specified in this chapter. Other Federal agencies shall cooperate in the report’s preparation.’’

Subsec. (h). Pub. L. 106–404, §10(a)(4), added subsec.

(h).

Subsec. (i). Pub. L. 106–404, §7(6), substituted ‘‘a gift

under this section’’ for ‘‘a gift under the section’’.

1998—Subsec. (e)(1)(K). Pub. L. 105–394 added subpar.

(K).

1996—Subsec. (e)(7)(B). Pub. L. 104–113, §3, amended

subpar. (B) generally. Prior to amendment, subpar. (B)

read as follows: ‘‘A transfer shall be made by any Federal agency under subparagraph (A), for any fiscal year,

only if—

‘‘(i) the amount so transferred by that agency (as

determined under such subparagraph) would exceed

$10,000; and

‘‘(ii) such transfer is made with respect to the fiscal

year 1987, 1988, 1989, 1990, 1991, 1992, 1993, 1994, 1995, or

1996.’’

Subsec. (i). Pub. L. 104–113, §9, inserted ‘‘loan, lease,

or’’ before ‘‘give’’.

1995—Subsec. (f). Pub. L. 104–66 struck out heading

and text of subsec. (f). Text read as follows: ‘‘Each Federal agency which operates or directs one or more Federal laboratories shall report annually to the Congress,

as part of the agency’s annual budget submission, on

the activities performed by that agency and its Federal

laboratories pursuant to the provisions of this section.’’

1992—Subsec. (e)(2). Pub. L. 102–245, §301(a), inserted

‘‘senior’’ before ‘‘representative’’.

Subsec. (e)(6). Pub. L. 102–245, §301(b), inserted at end

‘‘Such report shall include an annual independent audit

of the financial statements of the Consortium, conducted in accordance with generally accepted accounting principles.’’

Subsec. (e)(7)(B)(ii). Pub. L. 102–245, §301(c), substituted ‘‘1991, 1992, 1993, 1994, 1995, or 1996’’ for ‘‘or

1991’’.

Subsec. (e)(8). Pub. L. 102–245, §301(d), struck out

former par. (8) which read as follows:

‘‘(A) The Consortium shall use 5 percent of the funds

provided in paragraph (7)(A) to establish demonstration

projects in technology transfer. To carry out such

projects, the Consortium may arrange for grants or

awards to, or enter into agreements with, nonprofit

State, local, or private organizations or entities whose

primary purposes are to facilitate cooperative research

between the Federal laboratories and organizations not

associated with the Federal laboratories, to transfer

technology from the Federal laboratories, and to advance State and local economic activity.

‘‘(B) The demonstration projects established under

subparagraph (A) shall serve as model programs. Such

projects shall be designed to develop programs and

mechanisms for technology transfer from the Federal

laboratories which may be utilized by the States and

which will enhance Federal, State, and local programs

for the transfer of technology.

‘‘(C) Application for such grants, awards, or agreements shall be in such form and contain such information as the Consortium or its designee shall specify.

‘‘(D) Any person who receives or utilizes any proceeds

of a grant or award made, or agreement entered into,

under this paragraph shall keep such records as the

Consortium or its designee shall determine are necessary and appropriate to facilitate effective audit and

evaluation, including records which fully disclose the

amount and disposition of such proceeds and the total

cost of the project in connection with which such proceeds were used.’’

Subsec. (i). Pub. L. 102–245, §303, added subsec. (i).

1989—Subsec. (b). Pub. L. 101–189 struck out ‘‘after

September 30, 1981,’’ after ‘‘(2)’’, substituted ‘‘sufficient

funding, either as a separate line item or from the

agency’s research and development budget,’’ for ‘‘not

less than 0.5 percent of the agency’s research and development budget’’, struck out ‘‘agency head may waive

the requirement set forth in clause (2) of the preceding

sentence. If the agency head waives such requirement,

the’’ after ‘‘transfer process. The’’, and substituted

‘‘agency’s technology transfer program for the preceding year and the agency’s plans for conducting its technology transfer function for the upcoming year, including plans for securing intellectual property rights in

laboratory innovations with commercial promise and

plans for managing such innovations so as to benefit

the competitiveness of United States industry’’ for

‘‘reasons for the waiver and alternate plans for conducting the technology transfer function at the agency’’.

1988—Subsec. (d)(6). Pub. L. 100–418, §5163(c)(3), added

par. (6).

Subsec. (e)(4). Pub. L. 100–418, §5115(b)(2), substituted

‘‘National Institute of Standards and Technology’’ for

‘‘National Bureau of Standards’’ and ‘‘Institute’’ for

‘‘Bureau’’.

Subsec. (e)(7)(A). Pub. L. 100–418, §5162(b), substituted

‘‘0.008 percent of the budget of each Federal agency

from any Federal source, including related overhead,

that is to be utilized by or on behalf of’’ for ‘‘0.005 percent of that portion of the research and development

budget of each Federal agency that is to be utilized

by’’.

Pub. L. 100–418, §5115(b)(2), substituted ‘‘National Institute of Standards and Technology’’ for ‘‘National

Bureau of Standards’’ and ‘‘Institute’’ for ‘‘Bureau’’.

Subsec. (g)(1). Pub. L. 100–519, §201(d)(3), inserted reference to the Under Secretary.

Subsec. (h). Pub. L. 100–519, §212(a)(4), struck out subsec. (h) which read as follows: ‘‘None of the activities
Page 1773 TITLE 15—COMMERCE AND TRADE § 3710

or functions of the National Technical Information

Service which are not performed by contractors as of

September 30, 1987, shall be contracted out or otherwise

transferred from the Federal Government unless such

transfer is expressly authorized by statute, or unless

the value of all work performed under the contract and

related contracts in each fiscal year does not exceed

$250,000.’’

Pub. L. 100–418, §5163(c)(1), added subsec. (h).

1986—Subsec. (a). Pub. L. 99–502, §4(a), designated existing provisions as par. (1) and added pars. (2) and (3).

Subsec. (b). Pub. L. 99–502, §4(b)(1), substituted ‘‘200

or more full-time equivalent scientific, engineering,

and related technical positions shall provide one or

more full-time equivalent positions’’ for ‘‘a total annual budget exceeding $20,000,000 shall provide at least

one professional individual full-time’’, inserted ‘‘Furthermore, individuals filling positions in an Office of

Research and Technology Applications shall be included in the overall laboratory/agency management

development program so as to ensure that highly competent technical managers are full participants in the

technology transfer process.’’, substituted ‘‘requirement set forth in clause (2) of the preceding sentence’’

for ‘‘requirements set forth in (1) and/or (2) of this subsection’’, and substituted ‘‘such requirement’’ for ‘‘either requirement (1) or (2)’’.

Subsec. (c)(1). Pub. L. 99–502, §4(b)(2)(A), added par. (1)

and struck out former par. (1) which read as follows:

‘‘to prepare an application assessment of each research

and development project in which that laboratory is

engaged which has potential for successful application

in State or local government or in private industry;’’.

Subsec. (c)(3). Pub. L. 99–502, §4(b)(2)(B), substituted

‘‘the National Technical Information Service, the Federal Laboratory Consortium for Technology Transfer,’’

for ‘‘the Center for the Utilization of Federal Technology’’ and struck out ‘‘and’’ after the semicolon.

Subsec. (c)(4). Pub. L. 99–502, §4(b)(2)(C), substituted

‘‘to State and local government officials; and’’ for ‘‘in

response to requests from State and local government

officials.’’.

Subsec. (c)(5). Pub. L. 99–502, §4(b)(2)(D), added par.

(5).

Subsec. (d). Pub. L. 99–502, §4(c)(1), substituted ‘‘The

National Technical Information Service shall’’ for

‘‘There is hereby established in the Department of

Commerce a Center for the Utilization of Federal Technology. The Center for the Utilization of Federal Technology shall’’ in introductory par.

Subsec. (d)(2). Pub. L. 99–502, §4(c)(2), (3), redesignated

par. (3) as (2) and struck out ‘‘existing’’ before ‘‘Federal

Laboratory’’. Former par. (2), which required the Center for the Utilization of Federal Technology to coordinate the activities of the Offices of Research and Technology Applications of the Federal laboratories, was

struck out.

Subsec. (d)(3). Pub. L. 99–502, §4(c)(4), added par. (3).

Former par. (3) redesignated (2).

Subsec. (d)(4). Pub. L. 99–502, §4(c)(4)–(6), redesignated

par. (5) as (4) and substituted ‘‘subsection (c)(3)’’ for

‘‘subsection (c)(4)’’. Former par. (4), which required the

Center for the Utilization of Federal Technology to receive requests for technical assistance from State and

local governments and refer those requests to the appropriate Federal laboratories, was struck out.

Subsec. (d)(5), (6). Pub. L. 99–502, §4(c)(5), redesignated

pars. (5) and (6) as (4) and (5), respectively.

Subsecs. (e), (f). Pub. L. 99–502, §§3, 4(d), added subsec.

(e), redesignated former subsec. (e) as (f), substituted

‘‘report annually to the Congress, as part of the agency’s annual budget submission, on the activities’’ for

‘‘prepare biennially a report summarizing the activities’’, and struck out ‘‘The report shall be transmitted

to the Center for the Utilization of Federal Technology

by November 1 of each year in which it is due.’’.

Subsec. (g). Pub. L. 99–502, §5, added subsec. (g).

EX. ORD. NO. 12591. FACILITATING ACCESS TO SCIENCE

AND TECHNOLOGY

Ex. Ord. No. 12591, Apr. 10, 1987, 52 F.R. 13414, as

amended by Ex. Ord. No. 12618, Dec. 22, 1987, 52 F.R.

48661, provided:

By the authority vested in me as President by the

Constitution and laws of the United States of America,

including the Federal Technology Transfer Act of 1986

(Public Law 99–502) [see Short Title of 1986 Amendments note set out under section 3701 of this title], the

Trademark Clarification Act of 1984 (Public Law 98–620)

[see Short Title of 1984 Amendment note set out under

section 1051 of this title], and the University and Small

Business Patent Procedure Act of 1980 (Public Law

96–517) [see Tables for classification], and in order to

ensure that Federal agencies and laboratories assist

universities and the private sector in broadening our

technology base by moving new knowledge from the research laboratory into the development of new products and processes, it is hereby ordered as follows:

SECTION 1. Transfer of Federally Funded Technology.

(a) The head of each Executive department and agency, to the extent permitted by law, shall encourage and

facilitate collaboration among Federal laboratories,

State and local governments, universities, and the private sector, particularly small business, in order to assist in the transfer of technology to the marketplace.

(b) The head of each Executive department and agency shall, within overall funding allocations and to the

extent permitted by law:

(1) delegate authority to its government-owned, government-operated Federal laboratories:

(A) to enter into cooperative research and development agreements with other Federal laboratories,

State and local governments, universities, and the private sector; and

(B) to license, assign, or waive rights to intellectual

property developed by the laboratory either under such

cooperative research or development agreements and

from within individual laboratories.

(2) identify and encourage persons to act as conduits

between and among Federal laboratories, universities,

and the private sector for the transfer of technology developed from federally funded research and development efforts;

(3) ensure that State and local governments, universities, and the private sector are provided with information on the technology, expertise, and facilities

available in Federal laboratories;

(4) promote the commercialization, in accord with

my Memorandum to the Heads of Executive Departments and Agencies of February 18, 1983, of patentable

results of federally funded research by granting to all

contractors, regardless of size, the title to patents

made in whole or in part with Federal funds, in exchange for royalty-free use by or on behalf of the government;

(5) administer all patents and licenses to inventions

made with federal assistance, which are owned by the

non-profit contractor or grantee, in accordance with

Section 202(c)(7) of Title 35 of the United States Code as

amended by Public Law 98–620, without regard to limitations on licensing found in that section prior to

amendment or in Institutional Patent Agreements now

in effect that were entered into before that law was enacted on November 8, 1984, unless, in the case of an invention that has not been marketed, the funding agency determines, based on information in its files, that

the contractor or grantee has not taken adequate steps

to market the inventions, in accordance with applicable law or an Institutional Patent Agreement;

(6) implement, as expeditiously as practicable, royalty-sharing programs with inventors who were employees of the agency at the time their inventions were

made, and cash award programs; and

(7) cooperate, under policy guidance provided by the

Office of Federal Procurement Policy, with the heads of

other affected departments and agencies in the development of a uniform policy permitting Federal contrac-
§ 3710a TITLE 15—COMMERCE AND TRADE Page 1774

tors to retain rights to software, engineering drawings,

and other technical data generated by Federal grants

and contracts, in exchange for royalty-free use by or on

behalf of the government.

SEC. 2. Establishment of the Technology Share Program.

The Secretaries of Agriculture, Commerce, Energy, and

Health and Human Services and the Administrator of

the National Aeronautics and Space Administration

shall select one or more of their Federal laboratories to

participate in the Technology Share Program. Consistent with its mission and policies and within its overall

funding allocation in any year, each Federal laboratory

so selected shall:

(a) Identify areas of research and technology of potential importance to long-term national economic

competitiveness and in which the laboratory possesses

special competence and/or unique facilities;

(b) Establish a mechanism through which the laboratory performs research in areas identified in Section

2(a) as a participant of a consortium composed of

United States industries and universities. All consortia

so established shall have, at a minimum, three individual companies that conduct the majority of their business in the United States; and

(c) Limit its participation in any consortium so established to the use of laboratory personnel and facilities. However, each laboratory may also provide financial support generally not to exceed 25 percent of the

total budget for the activities of the consortium. Such

financial support by any laboratory in all such consortia shall be limited to a maximum of $5 million per

annum.

SEC. 3. Technology Exchange—Scientists and Engineers.

The Executive Director of the President’s Commission

on Executive Exchange shall assist Federal agencies,

where appropriate, by developing and implementing an

exchange program whereby scientists and engineers in

the private sector may take temporary assignments in

Federal laboratories, and scientists and engineers in

Federal laboratories may take temporary assignments

in the private sector.

SEC. 4. International Science and Technology. In order

to ensure that the United States benefits from and

fully exploits scientific research and technology developed abroad,

(a) The head of each Executive department and agency, when negotiating or entering into cooperative research and development agreements and licensing arrangements with foreign persons or industrial organizations (where these entities are directly or indirectly

controlled by a foreign company or government), shall,

in consultation with the United States Trade Representative, give appropriate consideration:

(1) to whether such foreign companies or governments permit and encourage United States agencies,

organizations, or persons to enter into cooperative research and development agreements and licensing arrangements on a comparable basis;

(2) to whether those foreign governments have policies to protect the United States intellectual property

rights; and

(3) where cooperative research will involve data,

technologies, or products subject to national security

export controls under the laws of the United States, to

whether those foreign governments have adopted adequate measures to prevent the transfer of strategic

technology to destinations prohibited under such national security export controls, either through participation in the Coordinating Committee for Multilateral

Export Controls (COCOM) or through other international agreements to which the United States and

such foreign governments are signatories.

(b) The Secretary of State shall develop a recruitment policy that encourages scientists and engineers

from other Federal agencies, academic institutions,

and industry to apply for assignments in embassies of

the United States; and

(c) The Secretaries of State and Commerce and the

Director of the National Science Foundation shall develop a central mechanism for the prompt and efficient

dissemination of science and technology information

developed abroad to users in Federal laboratories, academic institutions, and the private sector on a fee-forservice basis.

SEC. 5. Technology Transfer from the Department of Defense. Within 6 months of the date of this Order [Apr.

10, 1987], the Secretary of Defense shall identify a list

of funded technologies that would be potentially useful

to United States industries and universities. The Secretary shall then accelerate efforts to make these technologies more readily available to United States industries and universities.

SEC. 6. Basic Science and Technology Centers. The head

of each Executive department and agency shall examine the potential for including the establishment of

university research centers in engineering, science, or

technology in the strategy and planning for any future

research and development programs. Such university

centers shall be jointly funded by the Federal Government, the private sector, and, where appropriate, the

States and shall focus on areas of fundamental research

and technology that are both scientifically promising

and have the potential to contribute to the Nation’s

long-term economic competitiveness.

SEC. 7. Reporting Requirements. (a) Within 1 year from

the date of this Order [Apr. 10, 1987], the Director of the

Office of Science and Technology Policy shall convene

an interagency task force comprised of the heads of

representative agencies and the directors of representative Federal laboratories, or their designees, in order to

identify and disseminate creative approaches to technology transfer from Federal laboratories. The task

force will report to the President on the progress of and

problems with technology transfer from Federal laboratories.

(b) Specifically, the report shall include:

(1) a listing of current technology transfer programs

and an assessment of the effectiveness of these programs;

(2) identification of new or creative approaches to

technology transfer that might serve as model programs for Federal laboratories;

(3) criteria to assess the effectiveness and impact on

the Nation’s economy of planned or future technology

transfer efforts; and

(4) a compilation and assessment of the Technology

Share Program established in Section 2 and, where appropriate, related cooperative research and development venture programs.

SEC. 8. Relation to Existing Law. Nothing in this Order

shall affect the continued applicability of any existing

laws or regulations relating to the transfer of United

States technology to other nations. The head of any

Executive department or agency may exclude from consideration, under this Order, any technology that

would be, if transferred, detrimental to the interests of

national security.

RONALD REAGAN.

§ 3710a. Cooperative research and development

agreements

(a) General authority

Each Federal agency may permit the director

of any of its Government-operated Federal laboratories, and, to the extent provided in an

agency-approved joint work statement or, if permitted by the agency, in an agency-approved annual strategic plan, the director of any of its

Government-owned, contractor-operated laboratories—

(1) to enter into cooperative research and development agreements on behalf of such agency (subject to subsection (c) of this section)

with other Federal agencies; units of State or

local government; industrial organizations (including corporations, partnerships, and limited partnerships, and industrial development
Page 1775 TITLE 15—COMMERCE AND TRADE § 3710a

1See References in Text note below.

organizations); public and private foundations;

nonprofit organizations (including universities); or other persons (including licensees of

inventions owned by the Federal agency); and

(2) to negotiate licensing agreements under

section 207 of title 35, or under other authorities (in the case of a Government-owned, contractor-operated laboratory, subject to subsection (c) of this section) for inventions made

or other intellectual property developed at the

laboratory and other inventions or other intellectual property that may be voluntarily assigned to the Government.

(b) Enumerated authority

(1) Under an agreement entered into pursuant

to subsection (a)(1) of this section, the laboratory may grant, or agree to grant in advance, to

a collaborating party patent licenses or assignments, or options thereto, in any invention

made in whole or in part by a laboratory employee under the agreement, or, subject to section 209 of title 35, may grant a license to an invention which is federally owned, for which a

patent application was filed before the signing

of the agreement, and directly within the scope

of the work under the agreement, for reasonable

compensation when appropriate. The laboratory

shall ensure, through such agreement, that the

collaborating party has the option to choose an

exclusive license for a pre-negotiated field of use

for any such invention under the agreement or,

if there is more than one collaborating party,

that the collaborating parties are offered the option to hold licensing rights that collectively

encompass the rights that would be held under

such an exclusive license by one party. In consideration for the Government’s contribution

under the agreement, grants under this paragraph shall be subject to the following explicit

conditions:

(A) A nonexclusive, nontransferable, irrevocable, paid-up license from the collaborating

party to the laboratory to practice the invention or have the invention practiced throughout the world by or on behalf of the Government. In the exercise of such license, the Government shall not publicly disclose trade secrets or commercial or financial information

that is privileged or confidential within the

meaning of section 552(b)(4) of title 5 or which

would be considered as such if it had been obtained from a non-Federal party.

(B) If a laboratory assigns title or grants an

exclusive license to such an invention, the

Government shall retain the right—

(i) to require the collaborating party to

grant to a responsible applicant a nonexclusive, partially exclusive, or exclusive license

to use the invention in the applicant’s licensed field of use, on terms that are reasonable under the circumstances; or

(ii) if the collaborating party fails to grant

such a license, to grant the license itself.

(C) The Government may exercise its right

retained under subparagraph (B) only in exceptional circumstances and only if the Government determines that—

(i) the action is necessary to meet health

or safety needs that are not reasonably satisfied by the collaborating party;

(ii) the action is necessary to meet requirements for public use specified by Federal regulations, and such requirements are

not reasonably satisfied by the collaborating

party; or

(iii) the collaborating party has failed to

comply with an agreement containing provisions described in subsection (c)(4)(B) of this

section.

This determination is subject to administrative appeal and judicial review under section

203(2) 1 of title 35.

(2) Under agreements entered into pursuant to

subsection (a)(1) of this section, the laboratory

shall ensure that a collaborating party may retain title to any invention made solely by its

employee in exchange for normally granting the

Government a nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention or have the invention practiced throughout

the world by or on behalf of the Government for

research or other Government purposes.

(3) Under an agreement entered into pursuant

to subsection (a)(1) of this section, a laboratory

may—

(A) accept, retain, and use funds, personnel,

services, and property from a collaborating

party and provide personnel, services, and

property to a collaborating party;

(B) use funds received from a collaborating

party in accordance with subparagraph (A) to

hire personnel to carry out the agreement who

will not be subject to full-time-equivalent restrictions of the agency;

(C) to the extent consistent with any applicable agency requirements or standards of

conduct, permit an employee or former employee of the laboratory to participate in an

effort to commercialize an invention made by

the employee or former employee while in the

employment or service of the Government;

and

(D) waive, subject to reservation by the Government of a nonexclusive, irrevocable, paidup license to practice the invention or have

the invention practiced throughout the world

by or on behalf of the Government, in advance,

in whole or in part, any right of ownership

which the Federal Government may have to

any subject invention made under the agreement by a collaborating party or employee of

a collaborating party.

(4) A collaborating party in an exclusive license in any invention made under an agreement entered into pursuant to subsection (a)(1)

of this section shall have the right of enforcement under chapter 29 of title 35.

(5) A Government-owned, contractor-operated

laboratory that enters into a cooperative research and development agreement pursuant to

subsection (a)(1) of this section may use or obligate royalties or other income accruing to the

laboratory under such agreement with respect

to any invention only—

(A) for payments to inventors;

(B) for purposes described in clauses (i), (ii),

(iii), and (iv) of section 3710c(a)(1)(B) of this

title; and
§ 3710a TITLE 15—COMMERCE AND TRADE Page 1776

(C) for scientific research and development

consistent with the research and development

missions and objectives of the laboratory.

(6)(A) In the case of a laboratory that is part

of the National Nuclear Security Administration, a designated official of that Administration may waive any license retained by the Government under paragraph (1)(A), (2), or (3)(D), in

whole or in part and according to negotiated

terms and conditions, if the designated official

finds that the retention of the license by the

Government would substantially inhibit the

commercialization of an invention that would

otherwise serve an important national security

mission.

(B) The authority to grant a waiver under subparagraph (A) shall expire on the date that is

five years after October 30, 2000. The expiration

under the preceding sentence of authority to

grant a waiver under subparagraph (A) shall not

affect any waiver granted under that subparagraph before the expiration of such authority.

(C) Not later than February 15 of each year,

the Administrator for Nuclear Security shall

submit to Congress a report on any waivers

granted under this paragraph during the preceding year.

(c) Contract considerations

(1) A Federal agency may issue regulations on

suitable procedures for implementing the provisions of this section; however, implementation

of this section shall not be delayed until issuance of such regulations.

(2) The agency in permitting a Federal laboratory to enter into agreements under this section

shall be guided by the purposes of this chapter.

(3)(A) Any agency using the authority given it

under subsection (a) of this section shall review

standards of conduct for its employees for resolving potential conflicts of interest to make

sure they adequately establish guidelines for situations likely to arise through the use of this

authority, including but not limited to cases

where present or former employees or their

partners negotiate licenses or assignments of

titles to inventions or negotiate cooperative research and development agreements with Federal agencies (including the agency with which

the employee involved is or was formerly employed).

(B) If, in implementing subparagraph (A), an

agency is unable to resolve potential conflicts of

interest within its current statutory framework,

it shall propose necessary statutory changes to

be forwarded to its authorizing committees in

Congress.

(4) The laboratory director in deciding what

cooperative research and development agreements to enter into shall—

(A) give special consideration to small business firms, and consortia involving small business firms; and

(B) give preference to business units located

in the United States which agree that products embodying inventions made under the cooperative research and development agreement or produced through the use of such inventions will be manufactured substantially in

the United States and, in the case of any industrial organization or other person subject

to the control of a foreign company or government, as appropriate, take into consideration

whether or not such foreign government permits United States agencies, organizations, or

other persons to enter into cooperative research and development agreements and licensing agreements.

(5)(A) If the head of the agency or his designee

desires an opportunity to disapprove or require

the modification of any such agreement presented by the director of a Government-operated

laboratory, the agreement shall provide a 30-day

period within which such action must be taken

beginning on the date the agreement is presented to him or her by the head of the laboratory concerned.

(B) In any case in which the head of an agency

or his designee disapproves or requires the modification of an agreement presented by the director of a Government-operated laboratory under

this section, the head of the agency or such designee shall transmit a written explanation of

such disapproval or modification to the head of

the laboratory concerned.

(C)(i) Any non-Federal entity that operates a

laboratory pursuant to a contract with a Federal agency shall submit to the agency any cooperative research and development agreement

that the entity proposes to enter into and the

joint work statement if required with respect to

that agreement.

(ii) A Federal agency that receives a proposed

agreement and joint work statement under

clause (i) shall review and approve, request specific modifications to, or disapprove the proposed agreement and joint work statement within 30 days after such submission. No agreement

may be entered into by a Government-owned,

contractor-operated laboratory under this section before both approval of the agreement and

approval of a joint work statement under this

clause.

(iii) In any case in which an agency which has

contracted with an entity referred to in clause

(i) disapproves or requests the modification of a

cooperative research and development agreement or joint work statement submitted under

that clause, the agency shall transmit a written

explanation of such disapproval or modification

to the head of the laboratory concerned.

(iv) Any agency that has contracted with a

non-Federal entity to operate a laboratory may

develop and provide to such laboratory one or

more model cooperative research and development agreements for purposes of standardizing

practices and procedures, resolving common

legal issues, and enabling review of cooperative

research and development agreements to be carried out in a routine and prompt manner.

(v) A Federal agency may waive the requirements of clause (i) or (ii) under such circumstances as the agency considers appropriate.

(6) Each agency shall maintain a record of all

agreements entered into under this section.

(7)(A) No trade secrets or commercial or financial information that is privileged or confidential, under the meaning of section 552(b)(4) of

title 5, which is obtained in the conduct of research or as a result of activities under this

chapter from a non-Federal party participating

in a cooperative research and development

agreement shall be disclosed.
Page 1777 TITLE 15—COMMERCE AND TRADE § 3710a

(B) The director, or in the case of a contractor-operated laboratory, the agency, for a period

of up to 5 years after development of information that results from research and development

activities conducted under this chapter and that

would be a trade secret or commercial or financial information that is privileged or confidential if the information had been obtained from a

non-Federal party participating in a cooperative

research and development agreement, may provide appropriate protections against the dissemination of such information, including exemption from subchapter II of chapter 5 of title

5.

(d) Definitions

As used in this section—

(1) the term ‘‘cooperative research and development agreement’’ means any agreement

between one or more Federal laboratories and

one or more non-Federal parties under which

the Government, through its laboratories, provides personnel, services, facilities, equipment, intellectual property, or other resources

with or without reimbursement (but not funds

to non-Federal parties) and the non-Federal

parties provide funds, personnel, services, facilities, equipment, intellectual property, or

other resources toward the conduct of specified research or development efforts which are

consistent with the missions of the laboratory;

except that such term does not include a procurement contract or cooperative agreement

as those terms are used in sections 6303, 6304,

and 6305 of title 31;

(2) the term ‘‘laboratory’’ means—

(A) a facility or group of facilities owned,

leased, or otherwise used by a Federal agency, a substantial purpose of which is the performance of research, development, or engineering by employees of the Federal Government;

(B) a group of Government-owned, contractor-operated facilities (including a weapon

production facility of the Department of Energy) under a common contract, when a substantial purpose of the contract is the performance of research and development, or

the production, maintenance, testing, or dismantlement of a nuclear weapon or its components, for the Federal Government; and

(C) a Government-owned, contractor-operated facility (including a weapon production

facility of the Department of Energy) that is

not under a common contract described in

subparagraph (B), and the primary purpose

of which is the performance of research and

development, or the production, maintenance, testing, or dismantlement of a nuclear weapon or its components, for the Federal Government,

but such term does not include any facility

covered by Executive Order No. 12344, dated

February 1, 1982, pertaining to the naval nuclear propulsion program;

(3) the term ‘‘joint work statement’’ means

a proposal prepared for a Federal agency by

the director of a Government-owned, contractor-operated laboratory describing the purpose

and scope of a proposed cooperative research

and development agreement, and assigning

rights and responsibilities among the agency,

the laboratory, and any other party or parties

to the proposed agreement; and

(4) the term ‘‘weapon production facility of

the Department of Energy’’ means a facility

under the control or jurisdiction of the Secretary of Energy that is operated for national

security purposes and is engaged in the production, maintenance, testing, or dismantlement of a nuclear weapon or its components.

(e) Determination of laboratory missions

For purposes of this section, an agency shall

make separate determinations of the mission or

missions of each of its laboratories.

(f) Relationship to other laws

Nothing in this section is intended to limit or

diminish existing authorities of any agency.

(g) Principles

In implementing this section, each agency

which has contracted with a non-Federal entity

to operate a laboratory shall be guided by the

following principles:

(1) The implementation shall advance program missions at the laboratory, including

any national security mission.

(2) Classified information and unclassified

sensitive information protected by law, regulation, or Executive order shall be appropriately safeguarded.

(Pub. L. 96–480, §12, as added and renumbered

§11, Pub. L. 99–502, §§2, 9(e)(1), Oct. 20, 1986, 100

Stat. 1785, 1797; renumbered §12, Pub. L. 100–418,

title V, §5122(a)(1), Aug. 23, 1988, 102 Stat. 1438;

amended Pub. L. 100–519, title III, §301, Oct. 24,

1988, 102 Stat. 2597; Pub. L. 101–189, div. C, title

XXXI, §3133(a), (b), Nov. 29, 1989, 103 Stat. 1675,

1677; Pub. L. 102–25, title VII, §705(g), Apr. 6, 1991,

105 Stat. 121; Pub. L. 102–245, title III, §302(a),

Feb. 14, 1992, 106 Stat. 20; Pub. L. 102–484, div. C,

title XXXI, §3135(a), Oct. 23, 1992, 106 Stat. 2640;

Pub. L. 103–160, div. C, title XXXI, §3160, Nov. 30,

1993, 107 Stat. 1957; Pub. L. 104–113, §4, Mar. 7,

1996, 110 Stat. 775; Pub. L. 106–398, §1 [div. C, title

XXXI, §3196], Oct. 30, 2000, 114 Stat. 1654,

1654A–481; Pub. L. 106–404, §3, Nov. 1, 2000, 114

Stat. 1742.)

REFERENCES IN TEXT

Section 203(2) of title 35, referred to in subsec.

(b)(1)(C), was redesignated section 203(b) of title 35 by

Pub. L. 107–273, div. C, title III, §13206(a)(14)(A)(i), Nov.

2, 2002, 116 Stat. 1905.

Executive Order No. 12344, referred to in subsec.

(d)(2), is set out as a note under section 2511 of Title 50,

War and National Defense.

AMENDMENTS

2000—Subsec. (a). Pub. L. 106–398, §1 [div. C, title

XXXI, §3196(a)], substituted ‘‘joint work statement or,

if permitted by the agency, in an agency-approved annual strategic plan,’’ for ‘‘joint work statement,’’ in introductory provisions.

Subsec. (b)(1). Pub. L. 106–404, in first sentence, inserted ‘‘or, subject to section 209 of title 35, may grant

a license to an invention which is federally owned, for

which a patent application was filed before the signing

of the agreement, and directly within the scope of the

work under the agreement,’’ after ‘‘under the agreement,’’.

Subsec. (b)(6). Pub. L. 106–398, §1 [div. C, title XXXI,

§3196(b)], added par. (6).
§ 3710a TITLE 15—COMMERCE AND TRADE Page 1778

Subsec. (c)(5)(C), (D). Pub. L. 106–398, §1 [div. C, title

XXXI, §3196(c)], redesignated subpar. (D) as (C), struck

out ‘‘with a small business firm’’ after ‘‘enter into’’ and

inserted ‘‘if’’ after ‘‘statement’’ in cl. (i), added cls. (iv)

and (v), and struck out former subpar. (C) which related

to the duties of an agency which has contracted with a

non-Federal entity to operate a laboratory with respect

to review and approval of joint work statements and

agreements under this section and with respect to providing the entity with model cooperative research and

development agreements.

1996—Subsec. (b). Pub. L. 104–113 amended subsec. (b)

generally, to require that laboratory ensure that collaborating party be provided option of choosing exclusive license for pre-negotiated field of use for any invention under agreement or that collaborating party be

offered option of holding licensing rights that collectively encompass rights that would be held under such

exclusive license by one party, to set forth explicit conditions that grants under par. (1) were to be subject to,

and to require laboratory to ensure that collaborating

party might retain title to any invention made solely

by its employee in exchange for normally granting

Government nonexclusive, nontransferable, irrevocable, paid-up license to practice invention by or on

behalf of Government for research or for other Government purposes.

1993—Subsec. (d)(2)(B). Pub. L. 103–160, §3160(1), inserted ‘‘(including a weapon production facility of the

Department of Energy)’’ after ‘‘facilities’’ and ‘‘, or the

production, maintenance, testing, or dismantlement of

a nuclear weapon or its components,’’ after ‘‘research

and development’’.

Subsec. (d)(2)(C). Pub. L. 103–160, §3160(2), inserted

‘‘(including a weapon production facility of the Department of Energy)’’ after ‘‘facility’’ and ‘‘, or the production, maintenance, testing, or dismantlement of a nuclear weapon or its components,’’ after ‘‘research and

development’’.

Subsec. (d)(4). Pub. L. 103–160, §3160(3)–(5), added par.

(4).

1992—Subsec. (c)(5)(C)(i). Pub. L. 102–484, §3135(a)(1),

substituted ‘‘Except as provided in subparagraph (D),

any agency’’ for ‘‘Any agency’’.

Subsec. (c)(5)(D). Pub. L. 102–484, §3135(a)(2), added

subpar. (D).

Subsec. (d)(1). Pub. L. 102–245 inserted ‘‘intellectual

property,’’ after ‘‘equipment,’’ in two places.

1991—Subsec. (d)(2). Pub. L. 102–25 substituted

‘‘naval’’ for ‘‘Naval’’ in concluding provisions.

1989—Subsec. (a). Pub. L. 101–189, §3133(a)(1)(A), inserted ‘‘, and, to the extent provided in an agency-approved joint work statement, the director of any of its

Government-owned, contractor-operated laboratories’’

after ‘‘Government-operated Federal laboratories’’ in

introductory provisions.

Subsec. (a)(2). Pub. L. 101–189, §3133(a)(1)(B), (C), substituted ‘‘(in the case of a Government-owned, contractor-operated laboratory, subject to subsection (c) of

this section) for’’ for ‘‘for Government-owned’’ and

struck out ‘‘of Federal employees’’ before ‘‘that may be

voluntarily’’.

Subsec. (b). Pub. L. 101–189, §3133(a)(2)(A), (C), inserted ‘‘, and, to the extent provided in an agency-approved joint work statement, a Government-owned,

contractor-operated laboratory,’’ after ‘‘Governmentoperated Federal laboratory’’ in introductory provisions and inserted concluding provisions ‘‘A Government-owned, contractor-operated laboratory that enters into a cooperative research and development

agreement under subsection (a)(1) of this section may

use or obligate royalties or other income accruing to

such laboratory under such agreement with respect to

any invention only (i) for payments to inventors; (ii)

for the purposes described in section 3710c(a)(1)(B)(i),

(ii), and (iv) of this title; and (iii) for scientific research

and development consistent with the research and development mission and objectives of the laboratory.’’

Subsec. (b)(2). Pub. L. 101–189, §3133(a)(2)(B), substituted ‘‘a laboratory employee’’ for ‘‘a Federal employee’’.

Subsec. (c)(3)(A). Pub. L. 101–189, §3133(a)(3), substituted ‘‘standards of conduct for its employees’’ for

‘‘employee standards of conduct’’.

Subsec. (c)(5)(A). Pub. L. 101–189, §3133(a)(4), inserted

‘‘presented by the director of a Government-operated

laboratory’’ after ‘‘any such agreement’’.

Subsec. (c)(5)(B). Pub. L. 101–189, §3133(a)(5), inserted

‘‘by the director of a Government-operated laboratory’’

after ‘‘an agreement presented’’.

Subsec. (c)(5)(C). Pub. L. 101–189, §3133(a)(6), added

subpar. (C).

Subsec. (c)(7). Pub. L. 101–189, §3133(a)(7), added par.

(7).

Subsec. (d)(2). Pub. L. 101–189, §3133(a)(8)(B), amended

par. (2) generally. Prior to amendment, par. (2) read as

follows: ‘‘the term ‘laboratory’ means a facility or

group of facilities owned, leased, or otherwise used by

a Federal agency, a substantial purpose of which is the

performance of research, development, or engineering

by employees of the Federal Government.’’

Subsec. (d)(3). Pub. L. 101–189, §3133(a)(8)(A), (C),

added par. (3).

Subsec. (g). Pub. L. 101–189, §3133(b), added subsec. (g).

1988—Subsec. (a)(2). Pub. L. 100–519, §301(1), substituted ‘‘or other intellectual property developed at

the laboratory and other inventions or other intellectual property’’ for ‘‘at the laboratory and other inventions’’.

Subsec. (b)(4), (5). Pub. L. 100–519, §301(2), added par.

(4) and redesignated former par. (4) as (5).

REVIEW OF COOPERATIVE RESEARCH AND DEVELOPMENT

AGREEMENT PROCEDURES

Pub. L. 106–404, §8, Nov. 1, 2000, 114 Stat. 1746, provided that:

‘‘(a) REVIEW.—Within 90 days after the date of the enactment of this Act [Nov. 1, 2000], each Federal agency

with a federally funded laboratory that has in effect on

that date of the enactment one or more cooperative research and development agreements under section 12 of

the Stevenson-Wydler Technology Innovation Act of

1980 (15 U.S.C. 3710a) shall report to the Committee on

National Security of the National Science and Technology Council and the Congress on the general policies

and procedures used by that agency to gather and consider the views of other agencies on—

‘‘(1) joint work statements under section 12(c)(5)(C)

or (D) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a(c)(5)(C) or (D)); or

‘‘(2) in the case of laboratories described in section

12(d)(2)(A) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a(d)(2)(A)), cooperative research and development agreements under

such section 12,

with respect to major proposed cooperative research

and development agreements that involve critical national security technology or may have a significant

impact on domestic or international competitiveness.

‘‘(b) PROCEDURES.—Within 1 year after the date of the

enactment of this Act [Nov. 1, 2000], the Committee on

National Security of the National Science and Technology Council, in conjunction with relevant Federal

agencies and national laboratories, shall—

‘‘(1) determine the adequacy of existing procedures

and methods for interagency coordination and awareness with respect to cooperative research and development agreements described in subsection (a); and

‘‘(2) establish and distribute to appropriate Federal

agencies—

‘‘(A) specific criteria to indicate the necessity for

gathering and considering the views of other agencies on joint work statements or cooperative research and development agreements as described in

subsection (a); and

‘‘(B) additional procedures, if any, for carrying

out such gathering and considering of agency views

with respect to cooperative research and development agreements described in subsection (a).

Procedures established under this subsection shall be

designed to the extent possible to use or modify exist-
Page 1779 TITLE 15—COMMERCE AND TRADE § 3710b

1So in original. Probably should be capitalized.

ing procedures, to minimize burdens on Federal agencies, to encourage industrial partnerships with national

laboratories, and to minimize delay in the approval or

disapproval of joint work statements and cooperative

research and development agreements.

‘‘(c) LIMITATION.—Nothing in this Act [see Short Title

of 2000 Amendment note set out under section 3701 of

this title], nor any procedures established under this

section shall provide to the Office of Science and Technology Policy, the National Science and Technology

Council, or any Federal agency the authority to disapprove a cooperative research and development agreement or joint work statement, under section 12 of the

Stevenson-Wydler Technology Innovation Act of 1980

(15 U.S.C. 3710a), of another Federal agency.’’

MAGNETIC LEVITATION TECHNOLOGY

The Secretary of the Army, in cooperation with the

Secretary of Transportation, authorized to conduct research and development activities on magnetic levitation technology using contracts or cooperative research and development agreements under this section,

see section 417 of Pub. L. 101–640, set out as a note

under section 2313 of Title 33, Navigation and Navigable

Waters.

CONTRACT PROVISIONS

Section 3133(d) of Pub. L. 101–189, as amended by Pub.

L. 101–510, div. A, title VIII, §828(a), Nov. 5, 1990, 104

Stat. 1607, provided that:

‘‘(1) Not later than 150 days after the date of enactment of this Act [Nov. 29, 1989], each agency which has

contracted with a non-Federal entity to operate a Government-owned laboratory shall propose for inclusion

in that laboratory’s operating contract, to the extent

not already included and subject to paragraph (6), appropriate contract provisions that—

‘‘(A) establish technology transfer, including cooperative research and development agreements, as a

mission for the laboratory under section 11(a)(1) of

the Stevenson-Wydler Technology Innovation Act of

1980 [15 U.S.C. 3710(a)(1)];

‘‘(B) describe the respective obligations and responsibilities of the agency and the laboratory with respect to this part [part C (§§3131–3133) of title XXXI

of div. C of Pub. L. 101–189, see Short Title of 1989

Amendment note under section 3701 of this title] and

section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 [15 U.S.C. 3710a];

‘‘(C) require that, except as provided in paragraph

(2), no employee of the laboratory shall have a substantial role (including an advisory role) in the preparation, negotiation, or approval of a cooperative research and development agreement if, to such employee’s knowledge—

‘‘(i) such employee, or the spouse, child, parent,

sibling, or partner of such employee, or an organization (other than the laboratory) in which such

employee serves as an officer, director, trustee,

partner, or employee—

‘‘(I) holds a financial interest in any entity,

other than the laboratory, that has a substantial

interest in the preparation, negotiation, or approval of the cooperative research and development agreement; or

‘‘(II) receives a gift or gratuity from any entity,

other than the laboratory, that has a substantial

interest in the preparation, negotiation, or approval of the cooperative research and development agreement; or

‘‘(ii) a financial interest in any entity, other than

the laboratory, that has a substantial interest in

the preparation, negotiation, or approval of the cooperative research and development agreement, is

held by any person or organization with whom such

employee is negotiating or has any arrangement

concerning prospective employment;

‘‘(D) require that each employee of the laboratory

who negotiates or approves a cooperative research

and development agreement shall certify to the agency that the circumstances described in subparagraph

(C)(i) and (ii) do not apply to such employee;

‘‘(E) require the laboratory to widely disseminate

information on opportunities to participate with the

laboratory in technology transfer, including cooperative research and development agreements; and

‘‘(F) provides for an accounting of all royalty or

other income received under cooperative research and

development agreements.

‘‘(2) The requirements described in paragraph (1)(C)

and (D) shall not apply in a case where the negotiating

or approving employee advises the agency that reviewed the applicable joint work statement under section 12(c)(5)(C)(i) of the Stevenson-Wydler Technology

Innovation Act of 1980 [15 U.S.C. 3710a(c)(5)(C)(i)] in advance of the matter in which he is to participate and

the nature of any financial interest described in paragraph (1)(C), and where the agency employee determines that such financial interest is not so substantial

as to be considered likely to affect the integrity of the

laboratory employee’s service in that matter.

‘‘(3) Not later than 180 days after the date of enactment of this Act [Nov. 29, 1989], each agency which has

contracted with a non-Federal entity to operate a Government-owned laboratory shall submit a report to the

Congress which includes a copy of each contract provision amended pursuant to this subsection.

‘‘(4) No Government-owned, contractor-operated laboratory may enter into a cooperative research and development agreement under section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 [15

U.S.C. 3710a] unless—

‘‘(A) that laboratory’s operating contract contains

the provisions described in paragraph (1)(A) through

(F); or

‘‘(B) such laboratory agrees in a separate writing to

be bound by the provisions described in paragraph

(1)(A) through (F).

‘‘(5) Any contract for a Government-owned, contractor-operated laboratory entered into after the expiration of 150 days after the date of enactment of this Act

[Nov. 29, 1989] shall contain the provisions described in

paragraph (1)(A) through (F).

‘‘(6) Contract provisions referred to in paragraph (1)

shall include only such provisions as are necessary to

carry out paragraphs (1) and (2) of this subsection.’’

[Pub. L. 101–510, div. A, title VIII, §828(b), Nov. 5, 1990,

104 Stat. 1607, provided that: ‘‘Paragraph (6) of 3133(d) of

such Act [Pub. L. 101–189, set out above], as added by

subsection (a), shall apply only to contracts entered

into after the date of enactment of this Act [Nov. 5,

1990].’’]

§ 3710b. Rewards for scientific, engineering, and

technical personnel of Federal agencies

The head of each Federal agency that is making expenditures at a rate of more than

$50,000,000 per fiscal year for research and development in its Government-operated laboratories

shall use the appropriate statutory authority to

develop and implement a cash awards program

to reward its scientific, engineering, and technical personnel for—

(1) inventions, innovations, computer software, or other outstanding scientific or technological contributions of value to the United

States due to commercial application or due

to contributions to missions of the Federal

agency or the Federal government,1 or

(2) exemplary activities that promote the

domestic transfer of science and technology

development within the Federal Government

and result in utilization of such science and
§ 3710c TITLE 15—COMMERCE AND TRADE Page 1780

technology by American industry or business,

universities, State or local governments, or

other non-Federal parties.

(Pub. L. 96–480, §13, as added and renumbered

§12, Pub. L. 99–502, §§6, 9(e)(1), Oct. 20, 1986, 100

Stat. 1792, 1797; renumbered §13, Pub. L. 100–418,

title V, §5122(a)(1), Aug. 23, 1988, 102 Stat. 1438;

amended Pub. L. 100–519, title III, §302, Oct. 24,

1988, 102 Stat. 2597.)

AMENDMENTS

1988—Par. (1). Pub. L. 100–519 inserted ‘‘computer software,’’ after ‘‘inventions, innovations,’’.

§ 3710c. Distribution of royalties received by Federal agencies

(a) In general

(1) Except as provided in paragraphs (2) and

(4), any royalties or other payments received by

a Federal agency from the licensing and assignment of inventions under agreements entered

into by Federal laboratories under section 3710a

of this title, and from the licensing of inventions of Federal laboratories under section 207 of

title 35 or under any other provision of law,

shall be retained by the laboratory which produced the invention and shall be disposed of as

follows:

(A)(i) The head of the agency or laboratory,

or such individual’s designee, shall pay each

year the first $2,000, and thereafter at least 15

percent, of the royalties or other payments,

other than payments of patent costs as delineated by a license or assignment agreement,

to the inventor or coinventors, if the inventor’s or coinventor’s rights are assigned to the

United States.

(ii) An agency or laboratory may provide appropriate incentives, from royalties, or other

payments, to laboratory employees who are

not an inventor of such inventions but who

substantially increased the technical value of

such inventions.

(iii) The agency or laboratory shall retain

the royalties and other payments received

from an invention until the agency or laboratory makes payments to employees of a laboratory under clause (i) or (ii).

(B) The balance of the royalties or other

payments shall be transferred by the agency

to its laboratories, with the majority share of

the royalties or other payments from any invention going to the laboratory where the invention occurred. The royalties or other payments so transferred to any laboratory may be

used or obligated by that laboratory during

the fiscal year in which they are received or

during the 2 succeeding fiscal years—

(i) to reward scientific, engineering, and

technical employees of the laboratory, including developers of sensitive or classified

technology, regardless of whether the technology has commercial applications;

(ii) to further scientific exchange among

the laboratories of the agency;

(iii) for education and training of employees consistent with the research and development missions and objectives of the agency or laboratory, and for other activities

that increase the potential for transfer of

the technology of the laboratories of the

agency;

(iv) for payment of expenses incidental to

the administration and licensing of intellectual property by the agency or laboratory

with respect to inventions made at that laboratory, including the fees or other costs for

the services of other agencies, persons, or organizations for intellectual property management and licensing services; or

(v) for scientific research and development

consistent with the research and development missions and objectives of the laboratory.

(C) All royalties or other payments retained

by the agency or laboratory after payments

have been made pursuant to subparagraphs (A)

and (B) that is unobligated and unexpended at

the end of the second fiscal year succeeding

the fiscal year in which the royalties and

other payments were received shall be paid

into the Treasury.

(2) If, after payments to inventors under paragraph (1), the royalties or other payments received by an agency in any fiscal year exceed 5

percent of the budget of the agency for that

year, 75 percent of such excess shall be paid to

the Treasury of the United States and the remaining 25 percent may be used or obligated

under paragraph (1)(B). Any funds not so used or

obligated shall be paid into the Treasury of the

United States.

(3) Any payment made to an employee under

this section shall be in addition to the regular

pay of the employee and to any other awards

made to the employee, and shall not affect the

entitlement of the employee to any regular pay,

annuity, or award to which he is otherwise entitled or for which he is otherwise eligible or limit

the amount thereof. Any payment made to an

inventor as such shall continue after the inventor leaves the laboratory or agency. Payments

made under this section shall not exceed $150,000

per year to any one person, unless the President

approves a larger award (with the excess over

$150,000 being treated as a Presidential award

under section 4504 of title 5).

(4) A Federal agency receiving royalties or

other payments as a result of invention management services performed for another Federal

agency or laboratory under section 207 of title

35, may retain such royalties or payments to the

extent required to offset payments to inventors

under clause (i) of paragraph (1)(A), costs and

expenses incurred under clause (iv) of paragraph

(1)(B), and the cost of foreign patenting and

maintenance for any invention of the other

agency. All royalties and other payments remaining after offsetting the payments to inventors, costs, and expenses described in the preceding sentence shall be transferred to the agency

for which the services were performed, for distribution in accordance with paragraph (1)(B).

(b) Certain assignments

If the invention involved was one assigned to

the Federal agency—

(1) by a contractor, grantee, or participant,

or an employee of a contractor, grantee, or

participant, in an agreement or other arrangement with the agency, or
Page 1781 TITLE 15—COMMERCE AND TRADE § 3710d

1See References in Text note below.

(2) by an employee of the agency who was

not working in the laboratory at the time the

invention was made,

the agency unit that was involved in such assignment shall be considered to be a laboratory

for purposes of this section.

(c) Reports

The Comptroller General shall transmit a report to the appropriate committees of the Senate and House of Representatives on the effectiveness of Federal technology transfer programs, including findings, conclusions, and recommendations for improvements in such programs. The report shall be integrated with, and

submitted at the same time as, the report required by section 202(b)(3) 1 of title 35.

(Pub. L. 96–480, §14, as added, renumbered §13,

and amended Pub. L. 99–502, §§7, 9(e)(1), (3), Oct.

20, 1986, 100 Stat. 1792, 1797; renumbered §14 and

amended Pub. L. 100–418, title V, §§5122(a)(1),

5162(a), Aug. 23, 1988, 102 Stat. 1438, 1450; Pub. L.

100–519, title III, §303(a), Oct. 24, 1988, 102 Stat.

2597; Pub. L. 101–189, div. C, title XXXI, §3133(c),

Nov. 29, 1989, 103 Stat. 1677; Pub. L. 104–113, §5,

Mar. 7, 1996, 110 Stat. 777; Pub. L. 106–404, §§7(7),

10(b), Nov. 1, 2000, 114 Stat. 1746, 1749.)

REFERENCES IN TEXT

Section 202(b)(3) of title 35, referred to in subsec. (c),

was struck out and section 202(b)(4) was redesignated

section 202(b)(3) by Pub. L. 111–8, div. G, title I, §1301(h),

Mar. 11, 2009, 123 Stat. 829.

AMENDMENTS

2000—Subsec. (a)(1)(A)(i). Pub. L. 106–404, §7(7)(A), (B),

inserted ‘‘, other than payments of patent costs as delineated by a license or assignment agreement,’’ after

‘‘or other payments’’ and ‘‘, if the inventor’s or coinventor’s rights are assigned to the United States’’ before period at end.

Subsec. (a)(1)(B). Pub. L. 106–404, §7(7)(C), substituted

‘‘2 succeeding fiscal years’’ for ‘‘succeeding fiscal year’’

in introductory provisions.

Subsec. (a)(2). Pub. L. 106–404, §7(7)(D), struck out

‘‘Government-operated laboratories of the’’ before

‘‘agency for that year,’’.

Subsec. (b)(2). Pub. L. 106–404, §7(7)(E), substituted

‘‘invention’’ for ‘‘inventon’’.

Subsec. (c). Pub. L. 106–404, §10(b), amended heading

and text of subsec. (c) generally. Prior to amendment,

text read as follows:

‘‘(1) In making their annual budget submissions Federal agencies shall submit, to the appropriate authorization and appropriation committees of both Houses of

the Congress, summaries of the amount of royalties or

other income received and expenditures made (including inventor awards) under this section.

‘‘(2) The Comptroller General, five years after October 20, 1986, shall review the effectiveness of the various

royalty-sharing programs established under this section and report to the appropriate committees of the

House of Representatives and the Senate, in a timely

manner, his findings, conclusions, and recommendations for improvements in such programs.’’

1996—Subsec. (a)(1). Pub. L. 104–113, §5(1), amended

par. (1) generally, restructuring subpar. (A) to require

head of agency or his designee to pay each year first

$2,000, and thereafter at least 15 percent of royalties or

other income received by agency on account of any invention to inventor or coinventors if they had assigned

their rights in invention to United States and to authorize agencies to provide incentives to laboratory

employees who substantially increase technical value

of inventions, restructuring subpar. (B) to reorder cls.

(i) to (iv), to add cl. (v), and to strike out closing provisions which required unobligated or unused funds to be

paid into Treasury, and adding subpar. (C).

Subsec. (a)(2). Pub. L. 104–113, §5(2), in first sentence,

inserted ‘‘or other payments’’ after ‘‘royalties’’ and

substituted ‘‘under paragraph (1)(B)’’ for ‘‘for the purposes described in clauses (i) through (iv) of paragraph

(1)(B) during that fiscal year or the succeeding fiscal

year’’.

Subsec. (a)(3). Pub. L. 104–113, §5(3), substituted

‘‘$150,000’’ for ‘‘$100,000’’ in two places.

Subsec. (a)(4). Pub. L. 104–113, §5(4), in first sentence,

substituted ‘‘other payments’’ for ‘‘other income’’,

‘‘such royalties or payments’’ for ‘‘such royalties or income’’, ‘‘offset payments to inventors’’ for ‘‘offset the

payment of royalties to inventors’’, and ‘‘clause (iv) of

paragraph (1)(B)’’ for ‘‘clause (i) of paragraph (1)(B)’’

and, in second sentence, substituted ‘‘other payments’’

for ‘‘other income’’, substituted ‘‘offsetting the payments to inventors’’ for ‘‘payment of the royalties’’,

and struck out ‘‘clauses (i) through (iv) of’’ before

‘‘paragraph (1)(B)’’.

Subsec. (b)(1). Pub. L. 104–113, §5(5), amended par. (1)

generally. Prior to amendment, par. (1) read as follows:

‘‘by a contractor, grantee, or participant in a cooperative agreement with the agency, or’’.

1989—Subsec. (a)(1). Pub. L. 101–189, §3133(c)(1), in introductory provisions, inserted ‘‘by Government-operated Federal laboratories’’ after ‘‘entered into’’ and

made technical amendment to reference to section

3710a of this title to correct reference to corresponding

section of original Act, requiring no change in text.

Subsec. (a)(1)(B)(ii). Pub. L. 101–189, §3133(c)(2), inserted ‘‘, including payments to inventors and developers of sensitive or classified technology, regardless of

whether the technology has commercial applications’’

after ‘‘that laboratory’’.

Subsec. (a)(1)(B)(iv). Pub. L. 101–189, §3133(c)(3), substituted ‘‘technology of the laboratories’’ for ‘‘technology of the Government-operated laboratories’’.

1988—Subsec. (a)(1)(A)(i). Pub. L. 100–519, §303(a)(1),

substituted ‘‘has assigned his or her rights in the invention to the United States’’ for ‘‘was an employee of the

agency at the time the invention was made’’.

Subsec. (a)(1)(A)(ii). Pub. L. 100–519, §303(a)(2), substituted ‘‘under clause (i)’’ for ‘‘who were employed by

the agency at the time the invention was made and

whose names appear on licensed inventions’’.

Subsec. (a)(4). Pub. L. 100–418, §5162(a), substituted

‘‘may’’ for ‘‘shall’’ and ‘‘any invention of the other

agency’’ for ‘‘such invention performed at the request

of the other agency or laboratory’’ in first sentence.

1986—Subsec. (a)(1). Pub. L. 99–502, §9(e)(3), in introductory par. made technical amendment to reference to

section 3710a of this title to reflect renumbering of corresponding section of original act.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 303(b) of Pub. L. 100–519 provided that: ‘‘This

section [amending this section] shall be effective as of

October 20, 1986.’’

§ 3710d. Employee activities

(a) In general

If a Federal agency which has ownership of or

the right of ownership to an invention made by

a Federal employee does not intend to file for a

patent application or otherwise to promote commercialization of such invention, the agency

shall allow the inventor, if the inventor is a

Government employee or former employee who

made the invention during the course of employment with the Government, to obtain or retain

title to the invention (subject to reservation by

the Government of a nonexclusive, nontrans-
§ 3711 TITLE 15—COMMERCE AND TRADE Page 1782

ferrable, irrevocable, paid-up license to practice

the invention or have the invention practiced

throughout the world by or on behalf of the Government). In addition, the agency may condition

the inventor’s right to title on the timely filing

of a patent application in cases when the Government determines that it has or may have a

need to practice the invention.

(b) ‘‘Special Government employees’’ defined

For purposes of this section, Federal employees include ‘‘special Government employees’’ as

defined in section 202 of title 18.

(c) Relationship to other laws

Nothing in this section is intended to limit or

diminish existing authorities of any agency.

(Pub. L. 96–480, §15, as added and renumbered

§14, Pub. L. 99–502, §§8, 9(e)(1), Oct. 20, 1986, 100

Stat. 1794, 1797; renumbered §15, Pub. L. 100–418,

title V, §5122(a)(1), Aug. 23, 1988, 102 Stat. 1438;

amended Pub. L. 104–113, §6, Mar. 7, 1996, 110

Stat. 779.)

AMENDMENTS

1996—Subsec. (a). Pub. L. 104–113 substituted ‘‘ownership of or the right of ownership to an invention made

by a Federal employee’’ for ‘‘the right of ownership to

an invention under this chapter’’ and inserted ‘‘obtain

or’’ before ‘‘retain title to the invention’’.

§ 3711. National Technology and Innovation

Medal

(a) Establishment

There is hereby established a National Technology and Innovation Medal, which shall be of

such design and materials and bear such inscriptions as the President, on the basis of recommendations submitted by the Office of Science

and Technology Policy, may prescribe.

(b) Award

The President shall periodically award the

medal, on the basis of recommendations received from the Secretary or on the basis of

such other information and evidence as he

deems appropriate, to individuals or companies,

which in his judgment are deserving of special

recognition by reason of their outstanding contributions to the promotion of technology or

technological manpower for the improvement of

the economic, environmental, or social wellbeing of the United States.

(c) Presentation

The presentation of the award shall be made

by the President with such ceremonies as he

may deem proper.

(Pub. L. 96–480, §16, formerly §12, Oct. 21, 1980, 94

Stat. 2319; renumbered §16, Pub. L. 99–502, §2,

Oct. 20, 1986, 100 Stat. 1785; renumbered §15, Pub.

L. 99–502, §9(e)(1), Oct. 20, 1986, 100 Stat. 1797; renumbered §16, Pub. L. 100–418, title V,

§5122(a)(1), Aug. 23, 1988, 102 Stat. 1438; Pub. L.

110–69, title I, §1003, Aug. 9, 2007, 121 Stat. 576.)

AMENDMENTS

2007—Pub. L. 110–69, §1003(1), which directed substitution of ‘‘National Technology and Innovation Medal’’

for ‘‘National Medal’’ in section catchline, was executed by making the substitution for ‘‘National Technology Medal’’ to reflect the probable intent of Congress.

Subsec. (a). Pub. L. 110–69, §1003(2), substituted

‘‘Technology and Innovation Medal’’ for ‘‘Technology

Medal’’.

NATIONAL TECHNOLOGY MEDAL FOR ENVIRONMENTAL

TECHNOLOGY

Pub. L. 105–309, §10, Oct. 30, 1998, 112 Stat. 2939, provided that: ‘‘In the administration of section 16 of the

Stevenson-Wydler Technology Innovation Act of 1980

(15 U.S.C. 3711), Environmental Technology shall be established as a separate nomination category with appropriate unique criteria for that category.’’

§ 3711a. Malcolm Baldrige National Quality

Award

(a) Establishment

There is hereby established the Malcolm

Baldrige National Quality Award, which shall be

evidenced by a medal bearing the inscriptions

‘‘Malcolm Baldrige National Quality Award’’

and ‘‘The Quest for Excellence’’. The medal shall

be of such design and materials and bear such

additional inscriptions as the Secretary may

prescribe.

(b) Making and presentation of award

(1) The President (on the basis of recommendations received from the Secretary), or the Secretary, shall periodically make the award to

companies and other organizations which in the

judgment of the President or the Secretary have

substantially benefited the economic or social

well-being of the United States through improvements in the quality of their goods or services resulting from the effective practice of

quality management, and which as a consequence are deserving of special recognition.

(2) The presentation of the award shall be

made by the President or the Secretary with

such ceremonies as the President or the Secretary may deem proper.

(3) An organization to which an award is made

under this section, and which agrees to help

other American organizations improve their

quality management, may publicize its receipt

of such award and use the award in its advertising, but it shall be ineligible to receive another

such award in the same category for a period of

5 years.

(c) Categories in which award may be given

(1) Subject to paragraph (2), separate awards

shall be made to qualifying organizations in

each of the following categories—

(A) Small businesses.

(B) Companies or their subsidiaries.

(C) Companies which primarily provide services.

(D) Health care providers.

(E) Education providers.

(F) Nonprofit organizations.

(2) The Secretary may at any time expand,

subdivide, or otherwise modify the list of categories within which awards may be made as

initially in effect under paragraph (1), and may

establish separate awards for other organizations including units of government, upon a determination that the objectives of this section

would be better served thereby; except that any

such expansion, subdivision, modification, or establishment shall not be effective unless and

until the Secretary has submitted a detailed de-
Page 1783 TITLE 15—COMMERCE AND TRADE § 3711a

scription thereof to the Congress and a period of

30 days has elapsed since that submission.

(3) In any year, not more than 18 awards may

be made under this section to recipients who

have not previously received an award under

this section, and no award shall be made within

any category described in paragraph (1) if there

are no qualifying enterprises in that category.

(d) Criteria for qualification

(1) An organization may qualify for an award

under this section only if it—

(A) applies to the Director of the National

Institute of Standards and Technology in writing, for the award,

(B) permits a rigorous evaluation of the way

in which its business and other operations

have contributed to improvements in the quality of goods and services, and

(C) meets such requirements and specifications as the Secretary, after receiving recommendations from the Board of Overseers established under paragraph (2)(B) and the Director

of the National Institute of Standards and

Technology, determines to be appropriate to

achieve the objectives of this section.

In applying the provisions of subparagraph (C)

with respect to any organization, the Director of

the National Institute of Standards and Technology shall rely upon an intensive evaluation

by a competent board of examiners which shall

review the evidence submitted by the organization and, through a site visit, verify the accuracy of the quality improvements claimed. The

examination should encompass all aspects of the

organization’s current practice of quality management, as well as the organization’s provision

for quality management in its future goals. The

award shall be given only to organizations

which have made outstanding improvements in

the quality of their goods or services (or both)

and which demonstrate effective quality management through the training and involvement

of all levels of personnel in quality improvement.

(2)(A) The Director of the National Institute of

Standards and Technology shall, under appropriate contractual arrangements, carry out the

Director’s responsibilities under subparagraphs

(A) and (B) of paragraph (1) through one or more

broad-based nonprofit entities which are leaders

in the field of quality management and which

have a history of service to society.

(B) The Secretary shall appoint a board of

overseers for the award, consisting of at least

five persons selected for their preeminence in

the field of quality management. This board

shall meet annually to review the work of the

contractor or contractors and make such suggestions for the improvement of the award process as they deem necessary. The board shall report the results of the award activities to the

Director of the National Institute of Standards

and Technology each year, along with its recommendations for improvement of the process.

(e) Information and technology transfer program

The Director of the National Institute of

Standards and Technology shall ensure that all

program participants receive the complete results of their audits as well as detailed explanations of all suggestions for improvements.

The Director shall also provide information

about the awards and the successful quality improvement strategies and programs of the

award-winning participants to all participants

and other appropriate groups.

(f) Funding

The Secretary is authorized to seek and accept

gifts from public and private sources to carry

out the program under this section. If additional

sums are needed to cover the full cost of the program, the Secretary shall impose fees upon the

organizations applying for the award in amounts

sufficient to provide such additional sums. The

Director is authorized to use appropriated funds

to carry out responsibilities under this chapter.

(g) Report

The Secretary shall prepare and submit to the

President and the Congress, within 3 years after

August 20, 1987, a report on the progress, findings, and conclusions of activities conducted

pursuant to this section along with recommendations for possible modifications thereof.

(Pub. L. 96–480, §17, formerly §16, as added Pub.

L. 100–107, §3(a), Aug. 20, 1987, 101 Stat. 725; renumbered §17 and amended Pub. L. 100–418, title

V, §§5115(b)(2)(A), 5122(a)(1), Aug. 23, 1988, 102

Stat. 1433, 1438; Pub. L. 102–245, title III, §305,

Feb. 14, 1992, 106 Stat. 20; Pub. L. 105–309, §3, Oct.

30, 1998, 112 Stat. 2935; Pub. L. 108–320, §1, Oct. 5,

2004, 118 Stat. 1213; Pub. L. 110–69, title III, §3010,

Aug. 9, 2007, 121 Stat. 592.)

AMENDMENTS

2007—Subsec. (c)(3). Pub. L. 110–69 amended par. (3)

generally. Prior to amendment, par. (3) read as follows:

‘‘Not more than two awards may be made within any

subcategory in any year, unless the Secretary determines that a third award is merited and can be given

at no additional cost to the Federal Government (and

no award shall be made within any category or subcategory if there are no qualifying enterprises in that

category or subcategory).’’

2004—Subsec. (c)(1)(F). Pub. L. 108–320 added subpar.

(F).

1998—Subsec. (c)(1)(D), (E). Pub. L. 105–309, §3(b),

added subpars. (D) and (E).

Subsec. (c)(3). Pub. L. 105–309, §3(a), inserted ‘‘, unless

the Secretary determines that a third award is merited

and can be given at no additional cost to the Federal

Government’’ after ‘‘in any year’’.

1992—Subsec. (f). Pub. L. 102–245 inserted at end ‘‘The

Director is authorized to use appropriated funds to

carry out responsibilities under this chapter.’’

1988—Subsecs. (d), (e). Pub. L. 100–418, §5115(b)(2)(A),

substituted ‘‘National Institute of Standards and Technology’’ for ‘‘National Bureau of Standards’’ wherever

appearing.

FINDINGS AND PURPOSES

Pub. L. 100–107, §2, Aug. 20, 1987, 101 Stat. 724, provided that:

‘‘(a) FINDINGS.—The Congress finds and declares

that—

‘‘(1) the leadership of the United States in product

and process quality has been challenged strongly (and

sometimes successfully) by foreign competition, and

our Nation’s productivity growth has improved less

than our competitors over the last two decades;

‘‘(2) American business and industry are beginning

to understand that poor quality costs companies as

much as 20 percent of sales revenues nationally, and

that improved quality of goods and services goes
§ 3711b TITLE 15—COMMERCE AND TRADE Page 1784

hand in hand with improved productivity, lower

costs, and increased profitability;

‘‘(3) strategic planning for quality and quality improvement programs, through a commitment to excellence in manufacturing and services, are becoming

more and more essential to the well-being of our Nation’s economy and our ability to compete effectively

in the global marketplace;

‘‘(4) improved management understanding of the

factory floor, worker involvement in quality, and

greater emphasis on statistical process control can

lead to dramatic improvements in the cost and quality of manufactured products;

‘‘(5) the concept of quality improvement is directly

applicable to small companies as well as large, to

service industries as well as manufacturing, and to

the public sector as well as private enterprise;

‘‘(6) in order to be successful, quality improvement

programs must be management-led and customer-oriented and this may require fundamental changes in

the way companies and agencies do business;

‘‘(7) several major industrial nations have successfully coupled rigorous private sector quality audits

with national awards giving special recognition to

those enterprises the audits identify as the very best;

and

‘‘(8) a national quality award program of this kind

in the United States would help improve quality and

productivity by—

‘‘(A) helping to stimulate American companies to

improve quality and productivity for the pride of

recognition while obtaining a competitive edge

through increased profits,

‘‘(B) recognizing the achievements of those companies which improve the quality of their goods and

services and providing an example to others,

‘‘(C) establishing guidelines and criteria that can

be used by business, industrial, governmental, and

other organizations in evaluating their own quality

improvement efforts, and

‘‘(D) providing specific guidance for other American organizations that wish to learn how to manage for high quality by making available detailed

information on how winning organizations were

able to change their cultures and achieve eminence.

‘‘(b) PURPOSE.—It is the purpose of this Act [enacting

this section, amending section 3708 of this title, and enacting provisions set out as a note under section 3701 of

this title] to provide for the establishment and conduct

of a national quality improvement program under

which (1) awards are given to selected companies and

other organizations in the United States that practice

effective quality management and as a result make significant improvements in the quality of their goods and

services, and (2) information is disseminated about the

successful strategies and programs.’’

§ 3711b. Conference on advanced automotive

technologies

Not later than 180 days after December 18,

1991, the Secretary of Commerce, through the

Under Secretary of Commerce for Technology,

in consultation with other appropriate officials,

shall convene a conference of domestic motor

vehicle manufacturers, parts suppliers, Federal

laboratories, and motor vehicle users to explore

ways in which cooperatively they can improve

the competitiveness of the United States motor

vehicle industry by developing new technologies

which will enhance the safety and energy savings, and lessen the environmental impact of domestic motor vehicles, and the results of such

conference shall be published and then submitted to the President and to the Committees on

Science, Space, and Technology and Public

Works and Transportation of the House of Representatives and the Committee on Commerce,

Science, and Transportation of the Senate.

(Pub. L. 96–480, §18, as added Pub. L. 102–240,

title VI, §6019, Dec. 18, 1991, 105 Stat. 2183.)

CHANGE OF NAME

Committee on Public Works and Transportation of

House of Representatives treated as referring to Committee on Transportation and Infrastructure of House

of Representatives by section 1(a) of Pub. L. 104–14, set

out as a note preceding section 21 of Title 2.

§ 3711c. Advanced motor vehicle research award

(a) Establishment

There is established a National Award for the

Advancement of Motor Vehicle Research and

Development. The award shall consist of a

medal, and a cash prize if funding is available

for the prize under subsection (c) of this section.

The medal shall be of such design and materials

and bear inscriptions as is determined by the

Secretary of Transportation.

(b) Making and presenting award

The Secretary of Transportation shall periodically make and present the award to domestic

motor vehicle manufacturers, suppliers, or Federal laboratory personnel who, in the opinion of

the Secretary of Transportation, have substantially improved domestic motor vehicle research

and development in safety, energy savings, or

environmental impact. No person may receive

the award more than once every 5 years.

(c) Funding for award

The Secretary of Transportation may seek and

accept gifts of money from private sources for

the purpose of making cash prize awards under

this section. Such money may be used only for

that purpose, and only such money may be used

for that purpose.

(Pub. L. 96–480, §19, as added Pub. L. 102–240,

title VI, §6019, Dec. 18, 1991, 105 Stat. 2184.)

§ 3712. Personnel exchanges

The Secretary, the Secretary of Energy, and

the Director of the National Science Foundation, jointly, shall establish a program to foster

the exchange of scientific and technical personnel among academia, industry, and Federal laboratories. Such program shall include both (1)

federally supported exchanges and (2) efforts to

stimulate exchanges without Federal funding.

(Pub. L. 96–480, §20, formerly §13, Oct. 21, 1980, 94

Stat. 2320; renumbered §17, Pub. L. 99–502, §2,

Oct. 20, 1986, 100 Stat. 1785; renumbered §16, Pub.

L. 99–502, §9(e)(1), Oct. 20, 1986, 100 Stat. 1797; renumbered §17, Pub. L. 100–107, §3(a), Aug. 20,

1987, 101 Stat. 725; renumbered §18, Pub. L.

100–418, title V, §5122(a)(1), Aug. 23, 1988, 102

Stat. 1438; renumbered §20, Pub. L. 102–240, title

VI, §6019, Dec. 18, 1991, 105 Stat. 2183; Pub. L.

109–58, title X, §1009(c), Aug. 8, 2005, 119 Stat.

936.)

AMENDMENTS

2005—Pub. L. 109–58 substituted ‘‘, the Secretary of

Energy, and the Director of the National Science Foundation’’ for ‘‘and the National Science Foundation’’.

§ 3713. Authorization of appropriations

(a)(1) There is authorized to be appropriated to

the Secretary for the purposes of carrying out
Page 1785 TITLE 15—COMMERCE AND TRADE § 3715

1See References in Text note below.

sections 3710(g) and 3711 of this title not to exceed $3,400,000 for the fiscal year ending September 30, 1988.

(2) Of the amount authorized under paragraph

(1) of this subsection, $2,400,000 is authorized

only for the Office of Productivity, Technology,

and Innovation; and $500,000 is authorized only

for the patent licensing activities of the National Technical Information Service.

(b) In addition to the authorization of appropriations provided under subsection (a) of this

section, there is authorized to be appropriated

to the Secretary for the purposes of carrying out

section 3704a of this title not to exceed $500,000

for the fiscal year ending September 30, 1988,

$1,000,000 for the fiscal year ending September

30, 1989, and $1,500,000 for the fiscal year ending

September 30, 1990.

(c) Such sums as may be appropriated under

subsections (a) and (b) of this section shall remain available until expended.

(d) To enable the National Science Foundation

to carry out its powers and duties under this

chapter only such sums may be appropriated as

the Congress may authorize by law.

(Pub. L. 96–480, §21, formerly §14, Oct. 21, 1980, 94

Stat. 2320; renumbered §18, Pub. L. 99–502, §2,

Oct. 20, 1986, 100 Stat. 1785; renumbered §17, Pub.

L. 99–502, §9(e)(1), Oct. 20, 1986, 100 Stat. 1797; renumbered §18, Pub. L. 100–107, §3(a), Aug. 20,

1987, 101 Stat. 725; renumbered §19 and amended

Pub. L. 100–418, title V, §§5122(a)(1), 5152, Aug. 23,

1988, 102 Stat. 1438, 1449; renumbered §21, Pub. L.

102–240, title VI, §6019, Dec. 18, 1991, 105 Stat.

2183; Pub. L. 110–69, title III, §3002(c)(5), Aug. 9,

2007, 121 Stat. 586.)

AMENDMENTS

2007—Subsec. (a)(1). Pub. L. 110–69, §3002(c)(5)(A), substituted ‘‘sections 3710(g) and 3711’’ for ‘‘sections 3704,

3710(g), and 3711’’.

Subsec. (a)(2). Pub. L. 110–69, §3002(c)(5)(B), struck out

‘‘$500,000 is authorized only for the purpose of carrying

out the requirements of the Japanese technical literature program established under section 3704(d) of

this title;’’ after ‘‘Innovation;’’.

1988—Subsec. (a). Pub. L. 100–418, §5152, amended subsec. (a) generally. Prior to amendment, subsec. (a) read

as follows: ‘‘There is authorized to be appropriated to

the Secretary for purposes of carrying out section 3705

of this title, not to exceed $19,000,000 for the fiscal year

ending September 30, 1981, $40,000,000 for fiscal year

ending September 30, 1982, $50,000,000 for the fiscal year

ending September 30, 1983, and $60,000,000 for each of the

fiscal years ending September 30, 1984, and 1985.’’

Subsec. (b). Pub. L. 100–418, §5152, amended subsec. (b)

generally. Prior to amendment, subsec. (b) read as follows: ‘‘In addition to authorizations of appropriations

under subsection (a) of this section, there is authorized

to be appropriated to the Secretary for purposes of carrying out the provisions of this chapter, not to exceed

$5,000,000 for the fiscal year ending September 30, 1981,

$9,000,000 for the fiscal year ending September 30, 1982,

and $14,000,000 for each of the fiscal years ending September 30, 1983, 1984, and 1985.’’

§ 3714. Spending authority

No payments shall be made or contracts shall

be entered into pursuant to the provisions of

this chapter (other than sections 3710a, 3710b,

and 3710c of this title) except to such extent or

in such amounts as are provided in advance in

appropriation Acts.

(Pub. L. 96–480, §22, formerly §15, Oct. 21, 1980, 94

Stat. 2320; renumbered §19, Pub. L. 99–502, §2,

Oct. 20, 1986, 100 Stat. 1785; renumbered §18, and

amended Pub. L. 99–502, §9(b)(13), (e)(1), (4), Oct.

20, 1986, 100 Stat. 1796, 1797; renumbered §19, Pub.

L. 100–107, §3(a), Aug. 20, 1987, 101 Stat. 725; renumbered §20, Pub. L. 100–418, title V,

§5122(a)(1), Aug. 23, 1988, 102 Stat. 1438; renumbered §22, Pub. L. 102–240, title VI, §6019, Dec. 18,

1991, 105 Stat. 2183; Pub. L. 106–404, §7(8), Nov. 1,

2000, 114 Stat. 1746.)

AMENDMENTS

2000—Pub. L. 106–404 made technical amendments to

references in original act which appear in text as references to sections 3710a, 3710b, and 3710c of this title.

1986—Pub. L. 99–502, §9(e)(4), made technical amendment to references to sections 3710a, 3710b, and 3710c of

this title to reflect renumbering of corresponding sections of original act.

Pub. L. 99–502, §9(b)(13), inserted exception relating to

sections 3710a, 3710b, and 3710c of this title.

§ 3715. Use of partnership intermediaries

(a) Authority

Subject to the approval of the Secretary or

head of the affected department or agency, the

Director of a Federal laboratory, or in the case

of a federally funded research and development

center that is not a laboratory (as defined in

section 3710a(d)(2) of this title), the Federal employee who is the contract officer, may—

(1) enter into a contract or memorandum of

understanding with a partnership intermediary that provides for the partnership

intermediary to perform services for the Federal laboratory that increase the likelihood of

success in the conduct of cooperative or joint

activities of such Federal laboratory with

small business firms, institutions of higher

education as defined in section 1141(a) 1 of title

20, or educational institutions within the

meaning of section 2194 of title 10; and

(2) pay the Federal costs of such contract or

memorandum of understanding out of funds

available for the support of the technology

transfer function pursuant to section 3710(b) of

this title.

(b) Omitted

(c) ‘‘Partnership intermediary’’ defined

For purposes of this section, the term ‘‘partnership intermediary’’ means an agency of a

State or local government, or a nonprofit entity

owned in whole or in part by, chartered by, funded in whole or in part by, or operated in whole

or in part by or on behalf of a State or local government, that assists, counsels, advises, evaluates, or otherwise cooperates with small business firms, institutions of higher education as

defined in section 1141(a) 1 of title 20, or educational institutions within the meaning of section 2194 of title 10, that need or can make demonstrably productive use of technology-related

assistance from a Federal laboratory, including

State programs receiving funds under cooperative agreements entered into under section

5121(b) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 278l note).
§ 3716 TITLE 15—COMMERCE AND TRADE Page 1786

(Pub. L. 96–480, §23, formerly §21, as added Pub.

L. 101–510, div. A, title VIII, §827(a), Nov. 5, 1990,

104 Stat. 1606; amended Pub. L. 102–190, div. A,

title VIII, §836, Dec. 5, 1991, 105 Stat. 1448; renumbered §23, Pub. L. 102–240, title VI, §6019,

Dec. 18, 1991, 105 Stat. 2183; Pub. L. 106–404, §9,

Nov. 1, 2000, 114 Stat. 1747.)

REFERENCES IN TEXT

Section 1141(a) of title 20, referred to in subsecs. (a)(1)

and (c), was repealed by Pub. L. 105–244, §3, title I,

§101(b), title VII, §702, Oct. 7, 1998, 112 Stat. 1585, 1616,

1803, effective Oct. 1, 1998. However, the term ‘‘institution of higher education’’ is defined in section 1001 of

Title 20, Education.

CODIFICATION

Subsec. (b) of this section, which required the Secretary to include in each triennial report required

under section 3704d of this title a discussion and evaluation of activities carried out pursuant to this section, was omitted because of the termination of the triennial reporting requirement. See Codification note set

out after section 3704a of this title.

AMENDMENTS

2000—Subsec. (a)(1). Pub. L. 106–404, §9(1), inserted

‘‘, institutions of higher education as defined in section

1141(a) of title 20, or educational institutions within the

meaning of section 2194 of title 10’’ after ‘‘small business firms’’.

Subsec. (c). Pub. L. 106–404, §9(2), inserted

‘‘, institutions of higher education as defined in section

1141(a) of title 20, or educational institutions within the

meaning of section 2194 of title 10,’’ after ‘‘small business firms’’.

1991—Subsec. (a). Pub. L. 102–190 inserted ‘‘that is not

a laboratory (as defined in section 3710a(d)(2) of this

title)’’ after ‘‘center’’ in introductory provisions.

PARTICIPATION IN PROGRAMS PROMOTING RESEARCH,

DEVELOPMENT, DEMONSTRATION, OR TRANSFER OF

TECHNOLOGY

Pub. L. 103–337, div. A, title II, §217(f), Oct. 5, 1994, 108

Stat. 2695, as amended by Pub. L. 105–261, div. C, title

XXXI, §3136, Oct. 17, 1998, 112 Stat. 2248; Pub. L. 111–84,

div. A, title II, §254, Oct. 28, 2009, 123 Stat. 2243, provided that:

‘‘(1)(A) A federally funded research and development

center of the Department of Defense, of the National

Aeronautics and Space Administration, or of the Department of Energy that functions primarily as a research laboratory may respond to solicitations and announcements under programs authorized by the Federal Government for the purpose of promoting the research, development, demonstration, or transfer of

technology in a manner consistent with the terms and

conditions of such program.

‘‘(B) A federally funded research and development

center of the Department of Energy described in subparagraph (A) may respond to solicitations and announcements described in that subparagraph only for

activities conducted by the center under contract with

or on behalf of the Department of Defense.

‘‘(C) A federally funded research and development

center of the National Aeronautics and Space Administration that functions primarily as a research laboratory may respond to broad agency announcements

under programs authorized by the Federal Government

for the purpose of promoting the research, development, demonstration, or transfer of technology in a

manner consistent with the terms and conditions of

such program.

‘‘(2) A federally funded research and development

center described in paragraph (1)(A) that responds to a

solicitation or announcement described in such paragraph shall not be considered to be engaging in a competitive procedure and may use, among other authorities, cooperative research and development agreements

provided for under section 12 of the Stevenson-Wydler

Technology Innovation Act of 1980 (15 U.S.C. 3710a))

[sic] as the instruments of participation in the solicitation or announcement.’’

§ 3716. Critical industries

(a) Identification of industries and development

of plan

The Secretary shall—

(1) identify those civilian industries in the

United States that are necessary to support a

robust manufacturing infrastructure and critical to the economic security of the United

States; and

(2) list the major research and development

initiatives being undertaken, and the substantial investments being made, by the Federal

Government, including its research laboratories, in each of the critical industries identified under paragraph (1).

(b) Initial report

The Secretary shall submit a report to the

Congress within 1 year after February 14, 1992,

on the actions taken under subsection (a) of this

section.

(Pub. L. 102–245, title V, §504, Feb. 14, 1992, 106

Stat. 24.)

CODIFICATION

Subsec. (c) of this section, which required the Secretary to annually submit to Congress an update of the

report submitted under subsec. (b) of this section, terminated, effective May 15, 2000, pursuant to section 3003

of Pub. L. 104–66, as amended, set out as a note under

section 1113 of Title 31, Money and Finance. See, also,

page 52 of House Document No. 103–7.

Section was enacted as part of the American Technology Preeminence Act of 1991, and not as part of the

Stevenson-Wydler Technology Innovation Act of 1980

which comprises this chapter.

§ 3717. National Quality Council

(a) Establishment and functions

There is established a National Quality Council (hereafter in this section referred to as the

‘‘Council’’). The functions of the Council shall

be—

(1) to establish national goals and priorities

for Quality performance in business, education, government, and all other sectors of

the Nation;

(2) to encourage and support the voluntary

adoption of these goals and priorities by companies, unions, professional and business associations, coalition groups, and units of government, as well as private and nonprofit organizations;

(3) to arouse and maintain the interest of

the people of the United States in Quality performance, and to encourage the adoption and

institution of Quality performance methods by

all corporations, government agencies, and

other organizations; and

(4) to conduct a White House Conference on

Quality Performance in the American Workplace that would bring together in a single

forum national leaders in business, labor, education, professional societies, the media, government, and politics to address Quality per-
Page 1787 TITLE 15—COMMERCE AND TRADE § 3718

formance as a means of improving United

States competitiveness.

(b) Membership

The Council shall consist of not less than 17 or

more than 20 members, appointed by the Secretary. Members shall include—

(1) at least 2 but not more than 3 representatives from manufacturing industry;

(2) at least 2 but not more than 3 representatives from service industry;

(3) at least 2 but not more than 3 representatives from national Quality not-for-profit organizations;

(4) two representatives from education, one

with expertise in elementary and secondary

education, and one with expertise in post-secondary education;

(5) one representative from labor;

(6) one representative from professional societies;

(7) one representative each from local and

State government;

(8) one representative from the Federal

Quality Institute;

(9) one representative from the National Institute of Standards and Technology;

(10) one representative from the Department

of Defense;

(11) one representative from a civilian Federal agency not otherwise represented on the

Council, to be rotated among such agencies

every 2 years; and

(12) one representative from the Foundation

for the Malcolm Baldrige National Quality

Award.

(c) Terms

The term of office of each member of the

Council appointed under paragraphs (1) through

(7) of subsection (b) of this section shall be 2

years, except that when making the initial appointments under such paragraphs; the Secretary shall appoint not more than 50 percent of

the members to 1 year terms. No member appointed under such paragraphs shall serve on the

Council for more than 2 consecutive terms.

(d) Chairman and Vice Chairman

The Secretary shall designate one of the members initially appointed to the Council as Chairman. Thereafter, the members of the Council

shall annually elect one of their number as

Chairman. The members of the Council shall

also annually elect one of their members as Vice

Chairman. No individual shall serve as Chairman or Vice Chairman for more than 2 consecutive years.

(e) Executive Director and employees

The Council shall appoint and fix the compensation of an Executive Director, who shall

hire and fix the compensation of such additional

employees as may be necessary to assist the

Council in carrying out its functions. In hiring

such additional employees, the Executive Director shall ensure that no individual hired has a

conflict of interest with the responsibilities of

the Council.

(f) Funding

There is established in the Treasury of the

United States a National Quality Performance

Trust Fund, into which all funds received by the

Council, through private donations or otherwise,

shall be deposited. Amounts in such Trust Fund

shall be available to the Council, to the extent

provided in advance in appropriations Acts, for

the purpose of carrying out the functions of the

Council under this Act.

(g) Contributions

The Council may not accept private donations

from a single source in excess of $25,000 per year.

Private donations from a single source in excess

of $10,000 per year may be accepted by the Council only on approval of two-thirds of the Council.

(h) Annual report

The Council shall annually submit to the

President and the Congress a comprehensive and

detailed report on—

(1) the progress in meeting the goals and priorities established by the Council;

(2) the Council’s operations, activities, and

financial condition;

(3) contributions to the Council from nonFederal sources;

(4) plans for the Council’s operations and activities for the future; and

(5) any other information or recommendations the Council considers appropriate.

(Pub. L. 102–245, title V, §507, Feb. 14, 1992, 106

Stat. 27.)

REFERENCES IN TEXT

This Act, referred to in subsec. (f), is Pub. L. 102–245,

Feb. 14, 1992, 106 Stat. 7, known as the American Technology Preeminence Act of 1991. For complete classification of this Act to the Code, see Short Title of 1992

Amendment note set out under section 3701 of this title

and Tables.

CODIFICATION

Section was enacted as part of the American Technology Preeminence Act of 1991, and not as part of the

Stevenson-Wydler Technology Innovation Act of 1980

which comprises this chapter.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions

in subsec. (h) of this section relating to annually submitting a report to Congress, see section 3003 of Pub. L.

104–66, as amended, set out as a note under section 1113

of Title 31, Money and Finance, and page 184 of House

Document No. 103–7.

§ 3718. President’s Council on Innovation and

Competitiveness

(a) In general

The President shall establish a President’s

Council on Innovation and Competitiveness.

(b) Duties

The duties of the Council shall include—

(1) monitoring implementation of public

laws and initiatives for promoting innovation,

including policies related to research funding,

taxation, immigration, trade, and education

that are proposed in this Act or in any other

Act;

(2) providing advice to the President with respect to global trends in competitiveness and

innovation and allocation of Federal resources

in education, job training, and technology research and development considering such global trends in competitiveness and innovation;
§ 3718 TITLE 15—COMMERCE AND TRADE Page 1788

(3) in consultation with the Director of the

Office of Management and Budget, developing

a process for using metrics to assess the impact of existing and proposed policies and

rules that affect innovation capabilities in the

United States;

(4) identifying opportunities and making

recommendations for the heads of executive

agencies to improve innovation, monitoring,

and reporting on the implementation of such

recommendations;

(5) developing metrics for measuring the

progress of the Federal Government with respect to improving conditions for innovation,

including through talent development, investment, and infrastructure improvements; and

(6) submitting to the President and Congress

an annual report on such progress.

(c) Membership and coordination

(1) Membership

The Council shall be composed of the Secretary or head of each of the following:

(A) The Department of Commerce.

(B) The Department of Defense.

(C) The Department of Education.

(D) The Department of Energy.

(E) The Department of Health and Human

Services.

(F) The Department of Homeland Security.

(G) The Department of Labor.

(H) The Department of the Treasury.

(I) The National Aeronautics and Space

Administration.

(J) The Securities and Exchange Commission.

(K) The National Science Foundation.

(L) The Office of the United States Trade

Representative.

(M) The Office of Management and Budget.

(N) The Office of Science and Technology

Policy.

(O) The Environmental Protection Agency.

(P) The Small Business Administration.

(Q) Any other department or agency designated by the President.

(2) Chairperson

The Secretary of Commerce shall serve as

Chairperson of the Council.

(3) Coordination

The Chairperson of the Council shall ensure

appropriate coordination between the Council

and the National Economic Council, the National Security Council, and the National

Science and Technology Council.

(4) Meetings

The Council shall meet on a semi-annual

basis at the call of the Chairperson and the

initial meeting of the Council shall occur not

later than 6 months after August 9, 2007.

(d) Development of innovation agenda

(1) In general

The Council shall develop a comprehensive

agenda for strengthening the innovation and

competitiveness capabilities of the Federal

Government, State governments, academia,

and the private sector in the United States.

(2) Contents

The comprehensive agenda required by paragraph (1) shall include the following:

(A) An assessment of current strengths

and weaknesses of the United States investment in research and development.

(B) Recommendations for addressing weaknesses and maintaining the United States as

a world leader in research and development

and technological innovation, including

strategies for increasing the participation of

individuals identified in section 1885a or

1885b of title 42 in science, technology, engineering, and mathematics fields.

(C) Recommendations for strengthening

the innovation and competitiveness capabilities of the Federal Government, State governments, academia, and the private sector

in the United States.

(3) Advisors

(A) Recommendation

Not later than 30 days after August 9, 2007,

the National Academy of Sciences, in consultation with the National Academy of Engineering, the Institute of Medicine, and the

National Research Council, shall develop

and submit to the President a list of 50 individuals that are recommended to serve as

advisors to the Council during the development of the comprehensive agenda required

by paragraph (1). The list of advisors shall

include appropriate representatives from the

following:

(i) The private sector of the economy.

(ii) Labor.

(iii) Various fields including information

technology, energy, engineering, hightechnology manufacturing, health care,

and education.

(iv) Scientific organizations.

(v) Academic organizations and other

nongovernmental organizations working

in the area of science or technology.

(vi) Nongovernmental organizations,

such as professional organizations, that

represent individuals identified in section

1885a or 1885b of title 42 in the areas of

science, engineering, technology, and

mathematics.

(B) Designation

Not later than 30 days after the date that

the National Academy of Sciences submits

the list of recommended individuals to serve

as advisors, the President shall designate 50

individuals to serve as advisors to the Council.

(C) Requirement to consult

The Council shall develop the comprehensive agenda required by paragraph (1) in consultation with the advisors.

(4) Initial submission and updates

(A) Initial submission

Not later than 1 year after August 9, 2007,

the Council shall submit to Congress and the

President the comprehensive agenda required by paragraph (1).

(B) Updates

At least once every 2 years, the Council

shall update the comprehensive agenda required by paragraph (1) and submit each

such update to Congress and the President.
Page 1789 TITLE 15—COMMERCE AND TRADE § 3719

(e) Optional assignment

Notwithstanding subsection (a) and paragraphs (1) and (2) of subsection (c), the President

may designate an existing council to carry out

the requirements of this section.

(Pub. L. 110–69, title I, §1006, Aug. 9, 2007, 121

Stat. 578.)

CODIFICATION

Section was enacted as part of the America Creating

Opportunities to Meaningfully Promote Excellence in

Technology, Education, and Science Act, also known as

the America COMPETES Act, and not as part of the

Stevenson-Wydler Technology Innovation Act of 1980

which comprises this chapter.

DESIGNATION OF THE COMMITTEE ON TECHNOLOGY OF THE

NATIONAL SCIENCE AND TECHNOLOGY COUNCIL TO

CARRY OUT CERTAIN REQUIREMENTS OF THE AMERICA

COMPETES ACT

Memorandum of the President of the United States,

Apr. 10, 2008, 73 F.R. 20523, provided:

Memorandum for the Director of the Office of Science

and Technology Policy

By the authority vested in me as President of the

United States by the Constitution and the laws of the

United States of America, including section 1006(e) of

the America COMPETES Act (Public Law 110–69) (the

‘‘Act’’), I hereby designate the Committee on Technology of the National Science and Technology Council

to carry out the responsibilities assigned to the Council

on Innovation and Competitiveness in section 1006 of

the Act.

The Director of the Office of Science and Technology

Policy is authorized and directed to publish this memorandum in the Federal Register.

GEORGE W. BUSH.

§ 3719. Prize competitions

(a) Definitions

In this section:

(1) Agency

The term ‘‘agency’’ means a Federal agency.

(2) Director

The term ‘‘Director’’ means the Director of

the Office of Science and Technology Policy.

(3) Federal agency

The term ‘‘Federal agency’’ has the meaning

given under section 3703 of this title, except

that term shall not include any agency of the

legislative branch of the Federal Government.

(4) Head of an agency

The term ‘‘head of an agency’’ means the

head of a Federal agency.

(b) In general

Each head of an agency, or the heads of multiple agencies in cooperation, may carry out a

program to award prizes competitively to stimulate innovation that has the potential to advance the mission of the respective agency.

(c) Prizes

For purposes of this section, a prize may be

one or more of the following:

(1) A point solution prize that rewards and

spurs the development of solutions for a particular, well-defined problem.

(2) An exposition prize that helps identify

and promote a broad range of ideas and practices that may not otherwise attract attention, facilitating further development of the

idea or practice by third parties.

(3) Participation prizes that create value

during and after the competition by encouraging contestants to change their behavior or

develop new skills that may have beneficial effects during and after the competition.

(4) Such other types of prizes as each head of

an agency considers appropriate to stimulate

innovation that has the potential to advance

the mission of the respective agency.

(d) Topics

In selecting topics for prize competitions, the

head of an agency shall consult widely both

within and outside the Federal Government, and

may empanel advisory committees.

(e) Advertising

The head of an agency shall widely advertise

each prize competition to encourage broad participation.

(f) Requirements and registration

For each prize competition, the head of an

agency shall publish a notice in the Federal

Register announcing—

(1) the subject of the competition;

(2) the rules for being eligible to participate

in the competition;

(3) the process for participants to register

for the competition;

(4) the amount of the prize; and

(5) the basis on which a winner will be selected.

(g) Eligibility

To be eligible to win a prize under this section, an individual or entity—

(1) shall have registered to participate in the

competition under any rules promulgated by

the head of an agency under subsection (f);

(2) shall have complied with all the requirements under this section;

(3) 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 citizen or permanent resident of the United States; and

(4) may not be a Federal entity or Federal

employee acting within the scope of their employment.

(h) Consultation with Federal employees

An individual or entity shall not be deemed ineligible under subsection (g) because the individual or entity used Federal facilities or consulted

with Federal employees during a competition if

the facilities and employees are made available

to all individuals and entities participating in

the competition on an equitable basis.

(i) Liability

(1) In general

(A) Definition

In this paragraph, the term ‘‘related entity’’ means a contractor or subcontractor

at any tier, and a supplier, user, customer,

cooperating party, grantee, investigator, or

detailee.
§ 3719 TITLE 15—COMMERCE AND TRADE Page 1790

(B) Liability

Registered participants shall be required

to agree to assume any and all risks and

waive claims against the Federal Government and its related entities, except in the

case of willful misconduct, for any injury,

death, damage, or loss of property, revenue,

or profits, whether direct, indirect, or consequential, arising from their participation

in a competition, whether the injury, death,

damage, or loss arises through negligence or

otherwise.

(2) Insurance

Participants shall be required to obtain liability insurance or demonstrate financial responsibility, in amounts determined by the

head of an agency, for claims by—

(A) 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, with the

Federal Government named as an additional

insured under the registered participant’s

insurance policy and registered participants

agreeing to indemnify the Federal Government against third party claims for damages

arising from or related to competition activities; and

(B) the Federal Government for damage or

loss to Government property resulting from

such an activity.

(3) Exception

The head of an agency may not require a

participant to waive claims against the administering entity arising out of the unauthorized use or disclosure by the agency of the

intellectual property, trade secrets, or confidential business information of the participant.

(j) 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 in a competition without the

written consent of the participant.

(2) Licenses

The Federal Government may negotiate a license for the use of intellectual property developed by a participant for a competition.

(k) Judges

(1) In general

For each competition, the head of an agency, either directly or through an agreement

under subsection (l), shall appoint one or more

qualified judges to select the winner or winners of the prize competition on the basis described under subsection (f). Judges for each

competition may include individuals from outside the agency, including from the private

sector.

(2) Restrictions

A judge may not—

(A) have personal or financial interests in,

or be an employee, officer, director, or agent

of any entity that is a registered participant

in a competition; or

(B) have a familial or financial relationship with an individual who is a registered

participant.

(3) Guidelines

The heads of agencies who carry out competitions under this section shall develop

guidelines to ensure that the judges appointed

for such competitions are fairly balanced and

operate in a transparent manner.

(4) Exemption from FACA

The Federal Advisory Committee Act (5

U.S.C. App.) shall not apply to any committee,

board, commission, panel, task force, or similar entity, created solely for the purpose of

judging prize competitions under this section.

(l) Administering the competition

The head of an agency may enter into an

agreement with a private, nonprofit entity to

administer a prize competition, subject to the

provisions of this section.

(m) Funding

(1) In general

Support for a prize competition under this

section, including financial support for the design and administration of a prize or funds for

a monetary prize purse, may consist of Federal appropriated funds and funds provided by

the private sector for such cash prizes. The

head of an agency may accept funds from

other Federal agencies to support such competitions. The head of an agency may not give

any special consideration to any private sector entity in return for a donation.

(2) Availability of funds

Notwithstanding any other provision of law,

funds appropriated for prize awards under this

section shall remain available until expended.

No provision in this section permits obligation

or payment of funds in violation of section

1341 of title 31.

(3) Amount of prize

(A) Announcement

No prize may be announced under subsection (f) until all the funds needed to pay

out the announced amount of the prize have

been appropriated or committed in writing

by a private source.

(B) Increase in amount

The head of an agency may increase the

amount of a prize after an initial announcement is made under subsection (f) only if—

(i) notice of the increase is provided in

the same manner as the initial notice of

the prize; and

(ii) the funds needed to pay out the announced amount of the increase have been

appropriated or committed in writing by a

private source.

(4) Limitation on amount

(A) Notice to Congress

No prize competition under this section

may offer a prize in an amount greater than

$50,000,000 unless 30 days have elapsed after

written notice has been transmitted to the

Committee on Commerce, Science, and
Page 1791 TITLE 15—COMMERCE AND TRADE § 3720

1So in original. Probably should be ‘‘Services’’.

Transportation of the Senate and the Committee on Science and Technology of the

House of Representatives.

(B) Approval of head of agency

No prize competition under this section

may result in the award of more than

$1,000,000 in cash prizes without the approval

of the head of an agency.

(n) General Service 1 Administration assistance

Not later than 180 days after January 4, 2011,

the General Services Administration shall provide government wide services to share best

practices and assist agencies in developing

guidelines for issuing prize competitions. The

General Services Administration shall develop a

contract vehicle to provide agencies access to

relevant products and services, including technical assistance in structuring and conducting

prize competitions to take maximum benefit of

the marketplace as they identify and pursue

prize competitions to further the policy objectives of the Federal Government.

(o) Compliance with existing law

(1) In general

The Federal Government shall not, by virtue

of offering or providing a prize under this section, be responsible for compliance by registered participants in a prize competition

with Federal law, including licensing, export

control, and nonproliferation laws, and related

regulations.

(2) Other prize authority

Nothing in this section affects the prize authority authorized by any other provision of

law.

(p) Annual report

(1) In general

Not later than March 1 of each year, the Director 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 on the activities carried out during the

preceding fiscal year under the authority in

subsection (b).

(2) Information included

The report for a fiscal year under this subsection shall include, for each prize competition under subsection (b), the following:

(A) Proposed goals

A description of the proposed goals of each

prize competition.

(B) Preferable method

An analysis of why the utilization of the

authority in subsection (b) was the preferable method of achieving the goals described in subparagraph (A) as opposed to

other authorities available to the agency,

such as contracts, grants, and cooperative

agreements.

(C) Amount of cash prizes

The total amount of cash prizes awarded

for each prize competition, including a description of amount of private funds contributed to the program, the sources of such

funds, and the manner in which the amounts

of cash prizes awarded and claimed were allocated among the accounts of the agency

for recording as obligations and expenditures.

(D) Solicitations and evaluation of submissions

The methods used for the solicitation and

evaluation of submissions under each prize

competition, together with an assessment of

the effectiveness of such methods and lessons learned for future prize competitions.

(E) Resources

A description of the resources, including

personnel and funding, used in the execution

of each prize competition together with a detailed description of the activities for which

such resources were used and an accounting

of how funding for execution was allocated

among the accounts of the agency for recording as obligations and expenditures.

(F) Results

A description of how each prize competition advanced the mission of the agency concerned.

(Pub. L. 96–480, §24, as added Pub. L. 111–358,

title I, §105(a), Jan. 4, 2011, 124 Stat. 3989.)

REFERENCES IN TEXT

The Federal Advisory Committee Act, referred to in

subsec. (k)(4), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770,

which is set out in the Appendix to Title 5, Government

Organization and Employees.

CHANGE OF NAME

Committee on Science and Technology of House of

Representatives changed to Committee on Science,

Space, and Technology of House of Representatives by

House Resolution No. 5, One Hundred Twelfth Congress,

Jan. 5, 2011.

§ 3720. Office of Innovation and Entrepreneurship

(a) In general

The Secretary shall establish an Office of Innovation and Entrepreneurship to foster innovation and the commercialization of new technologies, products, processes, and services with

the goal of promoting productivity and economic growth in the United States.

(b) Duties

The Office of Innovation and Entrepreneurship

shall be responsible for—

(1) developing policies to accelerate innovation and advance the commercialization of research and development, including federally

funded research and development;

(2) identifying existing barriers to innovation and commercialization, including access

to capital and other resources, and ways to

overcome those barriers, particularly in

States participating in the Experimental Program to Stimulate Competitive Research;

(3) providing access to relevant data, research, and technical assistance on innovation

and commercialization;
§ 3721 TITLE 15—COMMERCE AND TRADE Page 1792

(4) strengthening collaboration on and coordination of policies relating to innovation

and commercialization, including those focused on the needs of small businesses and

rural communities, within the Department of

Commerce, between the Department of Commerce and other Federal agencies, and between the Department of Commerce and appropriate State government agencies and institutions, as appropriate; and

(5) any other duties as determined by the

Secretary.

(c) Advisory committee

The Secretary shall establish an Advisory

Council on Innovation and Entrepreneurship to

provide advice to the Secretary on carrying out

subsection (b).

(Pub. L. 96–480, §25, as added Pub. L. 111–358,

title VI, §601, Jan. 4, 2011, 124 Stat. 4026.)

§ 3721. Federal loan guarantees for innovative

technologies in manufacturing

(a) Establishment

The Secretary shall establish a program to

provide loan guarantees for obligations to smallor medium-sized manufacturers for the use or

production of innovative technologies.

(b) Eligible projects

A loan guarantee may be made under the program only for a project that re-equips, expands,

or establishes a manufacturing facility in the

United States—

(1) to use an innovative technology or an innovative process in manufacturing;

(2) to manufacture an innovative technology

product or an integral component of such a

product; or

(3) to commercialize an innovative product,

process, or idea that was developed by research funded in whole or in part by a grant

from the Federal government.

(c) Eligible borrower

A loan guarantee may be made under the program only for a borrower who is a small- or medium-sized manufacturer, as determined by the

Secretary under the criteria established pursuant to subsection (l).

(d) Limitation on amount

A loan guarantee shall not exceed an amount

equal to 80 percent of the obligation, as estimated at the time at which the loan guarantee

is issued.

(e) Limitations on loan guarantee

No loan guarantee shall be made unless the

Secretary determines that—

(1) there is a reasonable prospect of repayment of the principal and interest on the obligation by the borrower;

(2) the amount of the obligation (when combined with amounts available to the borrower

from other sources) is sufficient to carry out

the project;

(3) the obligation is not subordinate to other

financing;

(4) the obligation bears interest at a rate

that does not exceed a level that the Secretary

determines appropriate, taking into account

the prevailing rate of interest in the private

sector for similar loans and risks; and

(5) the term of an obligation requires full repayment over a period not to exceed the lesser

of—

(A) 30 years; or

(B) 90 percent of the projected useful life,

as determined by the Secretary, of the physical asset to be financed by the obligation.

(f) Defaults

(1) Payment by Secretary

(A) In general

If a borrower defaults (as defined in regulations promulgated by the Secretary and

specified in the loan guarantee) on the obligation, the holder of the loan guarantee

shall have the right to demand payment of

the unpaid amount from the Secretary.

(B) Payment required

Within such period as may be specified in

the loan guarantee or related agreements,

the Secretary shall pay to the holder of the

loan guarantee the unpaid interest on and

unpaid principal of the obligation as to

which the borrower has defaulted, unless the

Secretary finds that there was no default by

the borrower in the payment of interest or

principal or that the default has been remedied.

(C) Forbearance

Nothing in this subsection precludes any

forbearance by the holder of the obligation

for the benefit of the borrower which may be

agreed upon by the parties to the obligation

and approved by the Secretary.

(2) Subrogation

(A) In general

If the Secretary makes a payment under

paragraph (1), the Secretary shall be subrogated to the rights, as specified in the loan

guarantee, of the recipient of the payment

or related agreements including, if appropriate, the authority (notwithstanding any

other provision of law)—

(i) to complete, maintain, operate, lease,

or otherwise dispose of any property acquired pursuant to such loan guarantee or

related agreement; or

(ii) to permit the borrower, pursuant to

an agreement with the Secretary, to continue to pursue the purposes of the project

if the Secretary determines that such an

agreement is in the public interest.

(B) Superiority of rights

The rights of the Secretary, with respect

to any property acquired pursuant to a loan

guarantee or related agreements, shall be

superior to the rights of any other person

with respect to the property.

(3) Notification

If the borrower defaults on an obligation,

the Secretary shall notify the Attorney General of the default.

(g) Terms and conditions

A loan guarantee under this section shall include such detailed terms and conditions as the

Secretary determines appropriate—
Page 1793 TITLE 15—COMMERCE AND TRADE § 3721

(1) to protect the interests of the United

States in the case of default; and

(2) to have available all the patents and

technology necessary for any person selected,

including the Secretary, to complete and operate the project.

(h) Consultation

In establishing the terms and conditions of a

loan guarantee under this section, the Secretary

shall consult with the Secretary of the Treasury.

(i) Fees

(1) In general

The Secretary shall charge and collect fees

for loan guarantees in amounts the Secretary

determines are sufficient to cover applicable

administrative expenses.

(2) Availability

Fees collected under this subsection shall—

(A) be deposited by the Secretary into the

Treasury of the United States; and

(B) remain available until expended, subject to such other conditions as are contained in annual appropriations Acts.

(3) Limitation

In charging and collecting fees under paragraph (1), the Secretary shall take into consideration the amount of the obligation.

(j) Records

(1) In general

With respect to a loan guarantee under this

section, the borrower, the lender, and any

other appropriate party shall keep such

records and other pertinent documents as the

Secretary shall prescribe by regulation, including such records as the Secretary may require to facilitate an effective audit.

(2) Access

The Secretary and the Comptroller General

of the United States, or their duly authorized

representatives, shall have access to records

and other pertinent documents for the purpose

of conducting an audit.

(k) Full faith and credit

The full faith and credit of the United States

is pledged to the payment of all loan guarantees

issued under this section with respect to principal and interest.

(l) Regulations

The Secretary shall issue final regulations before making any loan guarantees under the program. The regulations shall include—

(1) criteria that the Secretary shall use to

determine eligibility for loan guarantees

under this section, including—

(A) whether a borrower is a small- or medium-sized manufacturer; and

(B) whether a borrower demonstrates that

a market exists for the innovative technology product, or the integral component

of such a product, to be manufactured, as

evidenced by written statements of interest

from potential purchasers;

(2) criteria that the Secretary shall use to

determine the amount of any fees charged

under subsection (i), including criteria related

to the amount of the obligation;

(3) policies and procedures for selecting and

monitoring lenders and loan performance; and

(4) any other policies, procedures, or information necessary to implement this section.

(m) Audit

(1) Annual independent audits

The Secretary shall enter into an arrangement with an independent auditor for annual

evaluations of the program under this section.

(2) Comptroller general review

The Comptroller General of the United

States shall conduct a biennial review of the

Secretary’s execution of the program under

this section.

(3) Report

The results of the independent audit under

paragraph (1) and the Comptroller General’s

review under paragraph (2) shall be provided

directly to the Committee on Science and

Technology of the House of Representatives

and the Committee on Commerce, Science,

and Transportation of the Senate.

(n) Report to Congress

Concurrent with the submission to Congress of

the President’s annual budget request in each

year after January 4, 2011, the Secretary shall

transmit to the Committee on Science and

Technology of the House of Representatives and

the Committee on Commerce, Science, and

Transportation of the Senate a report containing a summary of all activities carried out

under this section.

(o) Coordination and nonduplication

To the maximum extent practicable, the Secretary shall ensure that the activities carried

out under this section are coordinated with, and

do not duplicate the efforts of, other loan guarantee programs within the Federal Government.

(p) MEP centers

The Secretary may use centers established

under section 278k of this title to provide information about the program established under

this section and to conduct outreach to potential borrowers, as appropriate.

(q) Minimizing risk

The Secretary shall promulgate regulations

and policies to carry out this section in accordance with Office of Management and Budget Circular No. A–129, entitled ‘‘Policies for Federal

Credit Programs and Non-Tax Receivables’’, as

in effect on January 4, 2011.

(r) Sense of Congress

It is the sense of Congress that no loan guarantee shall be made under this section unless

the borrower agrees to use a federally-approved

electronic employment eligibility verification

system to verify the employment eligibility of—

(1) all persons hired during the contract

term by the borrower to perform employment

duties within the United States; and

(2) all persons assigned by the borrower to

perform work within the United States on the

project.
§ 3722 TITLE 15—COMMERCE AND TRADE Page 1794

(s) Definitions

In this section:

(1) Cost

The term ‘‘cost’’ has the meaning given such

term under section 661a of title 2.

(2) Innovative process

The term ‘‘innovative process’’ means a

process that is significantly improved as compared to the process in general use in the commercial marketplace in the United States at

the time the loan guarantee is issued.

(3) Innovative technology

The term ‘‘innovative technology’’ means a

technology that is significantly improved as

compared to the technology in general use in

the commercial marketplace in the United

States at the time the loan guarantee is issued.

(4) Loan guarantee

The term ‘‘loan guarantee’’ has the meaning

given such term in section 661a of title 2. The

term includes a loan guarantee commitment

(as defined in section 661a of title 2).

(5) Obligation

The term ‘‘obligation’’ means the loan or

other debt obligation that is guaranteed under

this section.

(6) Program

The term ‘‘program’’ means the loan guarantee program established in subsection (a).

(t) Authorization of appropriations

There are authorized to be appropriated

$20,000,000 for each of fiscal years 2011 through

2013 to provide the cost of loan guarantees under

this section.

(Pub. L. 96–480, §26, as added Pub. L. 111–358,

title VI, §602, Jan. 4, 2011, 124 Stat. 4026.)

CHANGE OF NAME

Committee on Science and Technology of House of

Representatives changed to Committee on Science,

Space, and Technology of House of Representatives by

House Resolution No. 5, One Hundred Twelfth Congress,

Jan. 5, 2011.

§ 3722. Regional innovation program

(a) Establishment

The Secretary shall establish a regional innovation program to encourage and support the

development of regional innovation strategies,

including regional innovation clusters and

science and research parks.

(b) Cluster grants

(1) In general

As part of the program established under

subsection (a), the Secretary may award

grants on a competitive basis to eligible recipients for activities relating to the formation and development of regional innovation

clusters.

(2) Permissible activities

Grants awarded under this subsection may

be used for activities determined appropriate

by the Secretary, including the following:

(A) Feasibility studies.

(B) Planning activities.

(C) Technical assistance.

(D) Developing or strengthening communication and collaboration between and

among participants of a regional innovation

cluster.

(E) Attracting additional participants to a

regional innovation cluster.

(F) Facilitating market development of

products and services developed by a regional innovation cluster, including through

demonstration, deployment, technology

transfer, and commercialization activities.

(G) Developing relationships between a regional innovation cluster and entities or

clusters in other regions.

(H) Interacting with the public and State

and local governments to meet the goals of

the cluster.

(3) Eligible recipient defined

In this subsection, the term ‘‘eligible recipient’’ means—

(A) a State;

(B) an Indian tribe;

(C) a city or other political subdivision of

a State;

(D) an entity that—

(i) is a nonprofit organization, an institution of higher education, a public-private partnership, a science or research

park, a Federal laboratory, or an economic

development organization or similar entity; and

(ii) has an application that is supported

by a State or a political subdivision of a

State; or

(E) a consortium of any of the entities described in subparagraphs (A) through (D).

(4) Application

(A) In general

An eligible recipient shall submit an application to the Secretary at such time, in such

manner, and containing such information

and assurances as the Secretary may require.

(B) Components

The application shall include, at a minimum, a description of the regional innovation cluster supported by the proposed activity, including a description of—

(i) whether the regional innovation cluster is supported by the private sector,

State and local governments, and other

relevant stakeholders;

(ii) how the existing participants in the

regional innovation cluster will encourage

and solicit participation by all types of entities that might benefit from participation, including newly formed entities and

those rival existing participants;

(iii) the extent to which the regional innovation cluster is likely to stimulate innovation and have a positive impact on regional economic growth and development;

(iv) whether the participants in the regional innovation cluster have access to,

or contribute to, a well-trained workforce;
Page 1795 TITLE 15—COMMERCE AND TRADE § 3722

(v) whether the participants in the regional innovation cluster are capable of

attracting additional funds from non-Federal sources; and

(vi) the likelihood that the participants

in the regional innovation cluster will be

able to sustain activities once grant funds

under this subsection have been expended.

(C) Special consideration

The Secretary shall give special consideration to applications from regions that contain communities negatively impacted by

trade.

(5) Special consideration

The Secretary shall give special consideration to an eligible recipient who agrees to

collaborate with local workforce investment

area boards.

(6) Cost share

The Secretary may not provide more than 50

percent of the total cost of any activity funded under this subsection.

(7) Use and application of research and information program

To the maximum extent practicable, the

Secretary shall ensure that activities funded

under this subsection use and apply any relevant research, best practices, and metrics developed under the program established in subsection (c).

(c) Science and research park development

grants

(1) In general

As part of the program established under

subsection (a), the Secretary may award

grants for the development of feasibility studies and plans for the construction of new

science parks or the renovation or expansion

of existing science parks.

(2) Limitation on amount of grants

The amount of a grant awarded under this

subsection may not exceed $750,000.

(3) Award

(A) Competition required

The Secretary shall award grants under

this subsection pursuant to a full and open

competition.

(B) Geographic dispersion

In conducting a competitive process, the

Secretary shall consider the need to avoid

undue geographic concentration among any

one category of States based on their predominant rural or urban character as indicated by population density.

(C) Selection criteria

The Secretary shall publish the criteria to

be utilized in any competition for the selection of recipients of grants under this subsection, which shall include requirements relating to the—

(i) effect the science park will have on

regional economic growth and development;

(ii) number of jobs to be created at the

science park and the surrounding regional

community each year during its first 3

years;

(iii) funding to be required to construct,

renovate or expand the science park during its first 3 years;

(iv) amount and type of financing and

access to capital available to the applicant;

(v) types of businesses and research entities expected in the science park and surrounding regional community;

(vi) letters of intent by businesses and

research entities to locate in the science

park;

(vii) capability to attract a well trained

workforce to the science park;

(viii) the management of the science

park during its first 5 years;

(ix) expected financial risks in the construction and operation of the science

park and the risk mitigation strategy;

(x) physical infrastructure available to

the science park, including roads, utilities,

and telecommunications;

(xi) utilization of energy-efficient building technology including nationally recognized green building design practices, renewable energy, cogeneration, and other

methods that increase energy efficiency

and conservation;

(xii) consideration to the transformation

of military bases affected by the base realignment and closure process or the redevelopment of existing buildings, structures, or brownfield sites that are abandoned, idled, or underused into single or

multiple building facilities for science and

technology companies and institutions;

(xiii) ability to collaborate with other

science parks throughout the world;

(xiv) consideration of sustainable development practices and the quality of life at

the science park; and

(xv) other such criteria as the Secretary

shall prescribe.

(4) Allocation constraints

The Secretary may not allocate less than

one-third of the total grant funding allocated

under this section for any fiscal year to grants

under subsection (b) or this subsection without written notification to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committees on Science and Technology and on Energy and Commerce.

(d) Loan guarantees for science park infrastructure

(1) In general

Subject to paragraph (2), the Secretary may

guarantee up to 80 percent of the loan amount

for projects for the construction or expansion,

including renovation and modernization, of

science park infrastructure.

(2) Limitations on guarantee amounts

The maximum amount of loan principal

guaranteed under this subsection may not exceed—

(A) $50,000,000 with respect to any single

project; and
§ 3722 TITLE 15—COMMERCE AND TRADE Page 1796

(B) $300,000,000 with respect to all projects.

(3) Selection of guarantee recipients

The Secretary shall select recipients of loan

guarantees under this subsection based upon

the ability of the recipient to collateralize the

loan amount through bonds, equity, property,

and such other things of values as the Secretary shall deem necessary. Recipients of

grants under subsection (c) are not eligible for

a loan guarantee during the period of the

grant. To the extent that the Secretary determines it to be feasible, the Secretary may select recipients of guarantee assistance in accord with a competitive process that takes

into account the factors set out in subsection

(c)(3)(C) of this section.

(4) Terms and conditions for loan guarantees

The loans guaranteed under this subsection

shall be subject to such terms and conditions

as the Secretary may prescribe, except that—

(A) the final maturity of such loans made

or guaranteed may not exceed the lesser of—

(i) 30 years; or

(ii) 90 percent of the useful life of any

physical asset to be financed by the loan;

(B) a loan guaranteed under this subsection may not be subordinated to another

debt contracted by the borrower or to any

other claims against the borrowers in the

case of default;

(C) a loan may not be guaranteed under

this subsection unless the Secretary determines that the lender is responsible and that

provision is made for servicing the loan on

reasonable terms and in a manner that adequately protects the financial interest of the

United States;

(D) a loan may not be guaranteed under

this subsection if—

(i) the income from the loan is excluded

from gross income for purposes of chapter

1 of title 26; or

(ii) the guarantee provides significant

collateral or security, as determined by

the Secretary in coordination with the

Secretary of the Treasury, for other obligations the income from which is so excluded;

(E) any guarantee provided under this subsection shall be conclusive evidence that—

(i) the guarantee has been properly obtained;

(ii) the underlying loan qualified for the

guarantee; and

(iii) absent fraud or material misrepresentation by the holder, the guarantee is

presumed to be valid, legal, and enforceable;

(F) the Secretary may not extend credit

assistance unless the Secretary has determined that there is a reasonable assurance

of repayment; and

(G) new loan guarantees may not be committed except to the extent that appropriations of budget authority to cover their

costs are made in advance, as required under

section 661c of title 2.

(5) Payment of losses

(A) In general

If, as a result of a default by a borrower

under a loan guaranteed under this subsection, after the holder has made such further collection efforts and instituted such

enforcement proceedings as the Secretary

may require, the Secretary determines that

the holder has suffered a loss, the Secretary

shall pay to the holder the percentage of the

loss specified in the guarantee contract.

Upon making any such payment, the Secretary shall be subrogated to all the rights

of the recipient of the payment. The Secretary shall be entitled to recover from the

borrower the amount of any payments made

pursuant to any guarantee entered into

under this section.

(B) Enforcement of rights

The Attorney General shall take such action as may be appropriate to enforce any

right accruing to the United States as a result of the issuance of any guarantee under

this section.

(C) Forbearance

Nothing in this section may be construed

to preclude any forbearance for the benefit

of the borrower which may be agreed upon

by the parties to the guaranteed loan and

approved by the Secretary, if budget authority for any resulting subsidy costs (as defined in section 661a(5) of title 2) is available.

(6) Evaluation of credit risk

(A) The Secretary shall periodically assess

the credit risk of new and existing direct loans

or guaranteed loans.

(B) Not later than 2 years after January 4,

2011, the Comptroller General of the United

States shall—

(i) conduct a review of the subsidy estimates for the loan guarantees under this

section; and

(ii) submit to Congress a report on the review conducted under this paragraph.

(7) Termination

A loan may not be guaranteed under this

section after September 30, 2013.

(8) Authorization of appropriations

There are authorized to be appropriated

$7,000,000 for each of fiscal years 2011 through

2013 for the cost (as defined in section 661a(5)

of title 2) of guaranteeing $300,000,000 in loans

under this section, such sums to remain available until expended.

(e) Regional innovation research and information program

(1) In general

As part of the program established under

subsection (a), the Secretary shall establish a

regional innovation research and information

program—

(A) to gather, analyze, and disseminate information on best practices for regional innovation strategies (including regional innovation clusters), including information relating to how innovation, productivity, and
Page 1797 TITLE 15—COMMERCE AND TRADE § 3722

1So in original. Probably should not be capitalized.

economic development can be maximized

through such strategies;

(B) to provide technical assistance, including through the development of technical assistance guides, for the development and implementation of regional innovation strategies (including regional innovation clusters);

(C) to support the development of relevant

metrics and measurement standards to

evaluate regional innovation strategies (including regional innovation clusters), including the extent to which such strategies

stimulate innovation, productivity, and economic development; and

(D) to collect and make available data on

regional innovation cluster activity in the

United States, including data on—

(i) the size, specialization, and competitiveness of regional innovation clusters;

(ii) the regional domestic product contribution, total jobs and earnings by key

occupations, establishment size, nature of

specialization, patents, Federal research

and development spending, and other relevant information for regional innovation

clusters; and

(iii) supply chain product and service

flows within and between regional innovation clusters.

(2) Research grants

The Secretary may award research grants on

a competitive basis to support and further the

goals of the program established under this

subsection.

(3) Dissemination of information

Data and analysis compiled by the Secretary

under the program established in this subsection shall be made available to other Federal agencies, State and local governments,

and nonprofit and for-profit entities.

(4) Regional innovation grant program

The Secretary shall incorporate data and

analysis relating to any grant under subsection (b) or (c) and any loan guarantee under

subsection (d) into the program established

under this subsection.

(f) Interagency coordination

(1) In general

To the maximum extent practicable, the

Secretary shall ensure that the activities carried out under this section are coordinated

with, and do not duplicate the efforts of, other

programs at the Department of Commerce or

other Federal agencies.

(2) Collaboration

(A) In general

The Secretary shall explore and pursue

collaboration with other Federal agencies,

including through multiagency funding opportunities, on regional innovation strategies.

(B) Small businesses

The Secretary shall ensure that such collaboration with Federal agencies prioritizes

the needs and challenges of small businesses.

(g) Evaluation

(1) In general

Not later than 3 years after January 4, 2011,

the Secretary shall enter into a contract with

an independent entity, such as the National

Academy of Sciences, to conduct an evaluation of the program established under subsection (a).

(2) Requirements

The evaluation shall include—

(A) whether the program is achieving its

goals;

(B) any recommendations for how the program may be improved; and

(C) a recommendation as to whether the

program should be continued or terminated.

(h) Definitions

In this section:

(1) Regional innovation cluster

The term ‘‘regional innovation cluster’’

means a geographically bounded network of

similar, synergistic, or complementary entities that—

(A) are engaged in or with a particular industry sector;

(B) have active channels for business

transactions and communication;

(C) share specialized infrastructure, labor

markets, and services; and

(D) leverage the region’s unique competitive strengths to stimulate innovation and

create jobs.

(2) Science park

The term ‘‘Science 1 park’’ means a property-based venture, which has—

(A) master-planned property and buildings

designed primarily for private-public research and development activities, high

technology and science-based companies,

and research and development support services;

(B) a contractual or operational relationship with one or more science- or researchrelated institution of higher education or

governmental or non-profit research laboratories;

(C) a primary mission to promote research

and development through industry partnerships, assisting in the growth of new ventures and promoting innovation-driven economic development;

(D) a role in facilitating the transfer of

technology and business skills between researchers and industry teams; and

(E) a role in promoting technology-led economic development for the community or region in which the science park is located. A

science park may be owned by a governmental or not-for-profit entity, but it may

enter into partnerships or joint ventures

with for-profit entities for development or

management of specific components of the

park.

(3) State

The term ‘‘State’’ means one of the several

States, the District of Columbia, the Common-
§ 3801 TITLE 15—COMMERCE AND TRADE Page 1798

wealth of Puerto Rico, the Virgin Islands,

Guam, American Samoa, the Commonwealth

of the Northern Mariana Islands, or any other

territory or possession of the United States.

(i) Authorization of appropriations

Except as provided in subsection (d)(8), there

are authorized to be appropriated $100,000,000 for

each of fiscal years 2011 through 2013 to carry

out this section (other than for loan guarantees

under subsection (d)).

(Pub. L. 96–480, §27, as added Pub. L. 111–358,

title VI, §603, Jan. 4, 2011, 124 Stat. 4030.)

CHANGE OF NAME

Committee on Science and Technology of House of

Representatives changed to Committee on Science,

Space, and Technology of House of Representatives by

House Resolution No. 5, One Hundred Twelfth Congress,

Jan. 5, 2011.

CHAPTER 64—METHANE TRANSPORTATION

RESEARCH, DEVELOPMENT, AND DEMONSTRATION

Sec.

3801. Congressional statement of findings and declaration of policy.

3802. Definitions.

3803. Duties of Secretary of Energy.

3804. Coordination with other Federal departments

and agencies.

3805. Research and development activities.

3806. Demonstrations.

3807. Use of methane-fueled vehicles by Federal

agencies and departments.

3808. Repealed.

3809. Authorization of appropriations; required

funding.

3810. Relationship to other laws.

§ 3801. Congressional statement of findings and

declaration of policy

(a) The Congress finds and declares that—

(1) gasoline and diesel fuel for vehicular use

are in short supply and constitute a sizable

portion of domestic petroleum consumption;

(2) methane use in fleet-operated vehicles

would result in substantial reduction in oil

imports;

(3) methane is in more abundant domestic

supply than petroleum products, is the primary component of natural gas and can be derived in increased quantities from coal, biomass, waste products, and other renewable

resources;

(4) recoverable methane presently available

in the United States is not fully utilized;

(5) test results to date indicate that methane

use as a substitute for gasoline as a motor fuel

can result in emission reductions;

(6) experience to date has shown methane to

be a safe motor fuel in properly modified vehicles and is therefore particularly suitable as

fuel for fleet vehicles; and

(7) the introduction into commerce of methane-fueled vehicles would be expedited and facilitated by the establishment of a Federal

program of research, development, and demonstration to explore and refine technologies

related to methane use as a vehicular fuel.

(b) It is therefore declared to be the policy of

the Congress in this chapter to—

(1) provide for and support advanced and accelerated research into, and development of,

methane vehicle design, and related technologies;

(2) demonstrate the economic and technological practicalities of methane-fueled vehicles for fleet use and of methane-fueled farm

equipment;

(3) facilitate, and remove barriers to, the use

of methane-fueled vehicles in lieu of gasolineor diesel-powered motor vehicles where practicable;

(4) promote the substitution of methanefueled vehicles for gasoline- and diesel-powered vehicles currently used on farms and in

fleet operations, particularly in areas where

such substitution would facilitate plans to

meet air quality standards set under the Clean

Air Act, as amended [42 U.S.C. 7401 et seq.];

and

(5) supplement, but neither supplant nor duplicate, the automotive propulsion system research and development efforts of private industry.

(Pub. L. 96–512, §2, Dec. 12, 1980, 94 Stat. 2827.)

REFERENCES IN TEXT

The Clean Air Act, as amended, referred to in subsec.

(b)(4), is act July 14, 1955, ch. 360, 69 Stat. 322, as amended, which is classified generally to chapter 85 (§7401 et

seq.) of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see

Short Title note set out under section 7401 of Title 42

and Tables.

SHORT TITLE

Section 1 of Pub. L. 96–512 provided: ‘‘That this Act

[enacting this chapter] may be cited as the ‘Methane

Transportation Research, Development, and Demonstration Act of 1980’.’’

§ 3802. Definitions

For purposes of this chapter—

(a) the term ‘‘methane’’ means either natural gas (as defined in section 3301(1) of this

title), gas derived from coal, liquefied natural

gas, or any gaseous transportation fuel produced from biomass, waste products, and other

renewable resources;

(b) the term ‘‘Secretary’’ means the Secretary of Energy;

(c) the term ‘‘public entities’’ means any

unit or units of State and/or local governments;

(d) the term ‘‘private entities’’ means any

person, such as any organization incorporated

under State law, for profit or not-for-profit, or

a consortium of such organizations, but does

not include public entities;

(e) the term ‘‘vehicle’’ means any truck,

van, station wagon, bus, or car used on public

roads or highways as well as off-road agricultural equipment, such as tractors, harvesters,

and so forth, which presently burn gasoline or

diesel fuel; and

(f) the terms ‘‘facilities for the transmission

and storage of methane’’, ‘‘methane transmission, storage and dispensing facilities’’,

and any variant thereof means such facilities

which are (1) directly necessary for the conduct of a demonstration, (2) for the exclusive