Page 1752 TITLE 15—COMMERCE AND TRADE § 3611

§ 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 vio

lation of this chapter may sue at law or in eq

uity.

(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 con

tributions from any person who if sued sepa

rately, 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 rea

sonable 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 jurisdic

tion; 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 con

troversy. Any such action may be brought in the

district wherein the defendant is found or is an
inhabitant or transacts business, or in the dis

trict where the sale took place, and process in
such cases may be served in other districts of

which the defendant is an inhabitant or wher

ever the defendant may be found. No case aris

ing 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 ac

tion 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 bind

ing 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 chap

ter shall be in addition to any and all other
rights and remedies that may exist under Fed

eral 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 appli

cation 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 Com

petitive Technology.

3704a. Clearinghouse for State and Local Initiatives

on Productivity, Technology, and Innova

tion.

3704b. National Technical Information Service.

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

lections.

3704b–2. Transfer of Federal scientific and technical

information.

3705. Cooperative Research Centers.

3706. Grants and cooperative agreements.

3707. National Science Foundation Cooperative Re

search Centers.

3708. Administrative arrangements.

3709. Repealed.

3710. Utilization of Federal technology.

3710a. Cooperative research and development agree

ments.

3710b. Rewards for scientific, engineering, and tech

nical 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 tech

nologies.

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 Com

petitiveness.

3719. Prize competitions.

3720. Office of Innovation and Entrepreneurship.

3721. Federal loan guarantees for innovative tech

nologies 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, cre

ation of new industries and employment op

portunities, improved public services and en

hanced competitiveness of United States prod

ucts in world markets. (3) Many new discoveries and advances in

science occur in universities and Federal lab

oratories, while the application of this new
knowledge to commercial and useful public
purposes depends largely upon actions by busi

ness 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 strength

ened. (4) Small businesses have performed an im

portant role in advancing industrial and tech

nological innovation. (5) Industrial and technological innovation
in the United States may be lagging when
compared to historical patterns and other in

dustrialized nations. (6) Increased industrial and technological in

novation would reduce trade deficits, stabilize
the dollar, increase productivity gains, in

crease 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 devel

opment 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 com

mercial and public purposes. There is a need
for such a policy, including a strong national
policy supporting domestic technology trans

fer and utilization of the science and tech

nology 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. Techno

logical innovations can improve services, re

duce their costs, and increase productivity in
State and local governments. (10) The Federal laboratories and other per

formers of federally funded research and devel

opment frequently provide scientific and tech

nological developments of potential use to
State and local governments and private in

dustry. These developments, which include in

ventions, 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 recogni

tion to individuals and companies which have
made outstanding contributions to the pro

motion of technology or technological man

power 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.)

A MENDMENTS

1986—Par. (10). Pub. L. 99–502 inserted ‘‘, which in

clude inventions, computer software, and training tech

nologies,’’.

S HORT T ITLE OF 2000 A MENDMENT

Pub. L. 106–404, §1, Nov. 1, 2000, 114 Stat. 1742, pro

vided 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, Pat

ents, 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’.’’

S HORT T ITLE OF 1996 A MENDMENT

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 enact

ing 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’.’’

S HORT T ITLE OF 1992 A MENDMENT

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

278 l of this title] may be cited as the ‘American Tech

nology 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

278 l of this title] may be cited as the ‘Technology Ad

ministration Authorization Act of 1991’.’’

S HORT T ITLE OF 1989 A MENDMENT

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 ‘Na

tional Competitiveness Technology Transfer Act of

1989’.’’

S HORT T ITLE OF 1988 A MENDMENT

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’.’’

S HORT T ITLE OF 1987 A MENDMENT

Pub. L. 100–107, §1, Aug. 20, 1987, 101 Stat. 724, pro

vided 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’.’’Page 1754 TITLE 15—COMMERCE AND TRADE § 3701

S HORT T ITLE OF 1986 A MENDMENTS

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’.’’

S HORT T ITLE

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’.’’

S TUDY ON E CONOMIC C OMPETITIVENESS AND I NNOVATIVE

C APACITY OF U NITED S TATES AND D EVELOPMENT OF

N ATIONAL E CONOMIC C OMPETITIVENESS S TRATEGY

Pub. L. 111–358, title VI, §604, Jan. 4, 2011, 124 Stat.
4037, provided that:
‘‘(a) S TUDY .— ‘‘(1) I N 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 comprehen

sive study of the economic competitiveness and inno

vative capacity of the United States.
‘‘(2) M ATTERS 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 rel

ative to other countries that compete economi

cally with the United States.
‘‘(ii) Economic competitiveness and domestic
innovation in the current business climate, in

cluding tax and Federal regulatory policy.
‘‘(iii) The business climate of the United States
and those of other countries that compete eco

nomically with the United States.
‘‘(iv) Regional issues that influence the eco

nomic 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 posi

tively to innovation.
‘‘(v) The effectiveness of the Federal Govern

ment in supporting and promoting economic com

petitiveness and innovation, including any dupli

cative 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 enter

prises, and barriers to the development and evo

lution 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 ex

port finance programs relative to export pro

motion and export finance programs of other
countries that compete economically with the
United States, including Canada, France, Ger

many, Italy, Japan, Korea, and the United King

dom, 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 assess

ment of Federal trade restrictions and State and
Federal export promotion activities. ‘‘(x) The effectiveness of the Federal Govern

ment and Federally funded research and develop

ment centers in supporting and promoting tech

nology commercialization and technology trans

fer. ‘‘(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 infra

structure. ‘‘(xiii) Federal and State policies relating to
science, technology, and education and other rel

evant Federal and State policies designed to pro

mote commercial innovation, including immigra

tion policies. ‘‘(C) Development of recommendations on the fol

lowing: ‘‘(i) How the United States should invest in
human capital. ‘‘(ii) How the United States should facilitate en

trepreneurship and innovation. ‘‘(iii) How best to develop opportunities for lo

cally and regionally driven innovation by provid

ing Federal support. ‘‘(iv) How best to strengthen the economic in

frastructure and industrial base of the United

States. ‘‘(v) How to improve the international competi

tiveness of the United States. ‘‘(3) C ONSULTATION .— ‘‘(A) I N GENERAL .—The study required by para

graph (1) shall be conducted in consultation with

the National Economic Council of the Office of Pol

icy Development, such Federal agencies as the Sec

retary considers appropriate, and the Innovation
Advisory Board established under subparagraph (B).
The Secretary shall also establish a process for ob

taining comments from the public. ‘‘(B) I NNOVATION ADVISORY BOARD .— ‘‘(i) I N GENERAL .—The Secretary shall establish
an Innovation Advisory Board for purposes of ob

taining advice with respect to the conduct of the
study required by paragraph (1). ‘‘(ii) C OMPOSITION .—The Advisory Board estab

lished 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 pri

vate industry, including large and small firms,
representing advanced technology sectors and
more traditional sectors that use technology;

and ‘‘(III) who may include economic or innova

tion policy experts, State and local government
officials active in technology-based economic
development, and representatives from higher

education. ‘‘(iii) E XEMPTION FROM FACA .—The Federal Advi

sory Committee Act (5 U.S.C. App.) shall not
apply to the advisory board established under
clause (i). ‘‘(b) S TRATEGY .— ‘‘(1) I N GENERAL .—Not later than 1 year after the
completion of the study required by subsection (a),
the Secretary shall develop, based on the study re

quired by subsection (a)(1), a national 10-year strat

egy to strengthen the innovative and competitive ca

pacity of the Federal Government, State and local
governments, United States institutions of higher
education, and the private sector of the United

States. ‘‘(2) E LEMENTS .—The strategy required by para

graph (1) shall include the following: ‘‘(A) Actions to be taken by individual Federal
agencies and departments to improve competitive

ness. ‘‘(B) Proposed legislative actions for consider

ation 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 con

ditions for innovation and the competitiveness of

the United States. ‘‘(c) R EPORT .— ‘‘(1) I N GENERAL .—Upon the completion of the strat

egy required by subsection (b), the Secretary of Com

merce shall submit to Congress and the President a
report on the study conducted under subsection (a)
and the strategy developed under subsection (b). ‘‘(2) E LEMENTS .—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).’’

P ROMOTING U SE OF H IGH -E ND C OMPUTING S IMULATION

AND M ODELING BY S MALL - AND M EDIUM -S IZED M ANU

FACTURERS

Pub. L. 111–358, title VI, §605, Jan. 4, 2011, 124 Stat.
4040, provided that: ‘‘(a) F INDINGS .—Congress finds that— ‘‘(1) the utilization of high-end computing simula

tion and modeling by large-scale government con

tractors and Federal research entities has resulted in
substantial improvements in the development of ad

vanced manufacturing technologies; and ‘‘(2) such simulation and modeling would also bene

fit small- and medium-sized manufacturers in the
United States if such manufacturers were to deploy
such simulation and modeling throughout their man

ufacturing chains. ‘‘(b) P OLICY .—It is the policy of the United States to
take all effective measures practicable to ensure that
Federal programs and policies encourage and contrib

ute to the use of high-end computing simulation and
modeling in the United States manufacturing sector. ‘‘(c) S TUDY .— ‘‘(1) I N 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 Sec

retary 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 simula

tion and modeling by small- and medium-sized manu

facturers in the United States. ‘‘(2) F ACTORS .—In carrying out the study required
by paragraph (1), the Secretary of Commerce, in con

sultation with the Secretary of Energy and the Direc

tor of the Office of Science and Technology Policy,
shall consider the following: ‘‘(A) The access of small- and medium-sized man

ufacturers in the United States to high-perform

ance computing facilities and resources. ‘‘(B) The availability of software and other appli

cations tailored to meet the needs of such manufac

turers. ‘‘(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) R EPORT .—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 in

clude 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) A UTHORIZATION OF D EMONSTRATION AND P ILOT

P ROGRAMS .—As part of the study required by sub

section (c)(1), the Secretary of Commerce, the Sec

retary of Energy, and the Director of the Office of
Science and Technology Policy may carry out such
demonstration or pilot programs as either [the] Sec

retary or the Director considers appropriate to gather
experiential data to evaluate the feasibility and advis

ability of a specific program or policy initiative to re

duce barriers to the utilization of high-end computer
modeling and simulation by small- and medium-sized

manufacturers in the United States.’’

C ONGRESSIONAL F INDINGS ; 2000 A MENDMENT

Pub. L. 106–404, §2, Nov. 1, 2000, 114 Stat. 1742, pro

vided that: ‘‘The Congress finds that— ‘‘(1) the importance of linking our unparalleled net

work of over 700 Federal laboratories and our Na

tion’s universities with United States industry con

tinues 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 pub

lic/private sector partnerships to enhance our inter

national 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 sci

entific enterprises that conduct our Nation’s research
and development—government, industry, and univer

sities; and improved the quality of life for the Amer

ican people, from medicine to materials; ‘‘(5) the technology transfer process must be made
‘industry friendly’ for companies to be willing to in

vest the significant time and resources needed to de

velop new products, processes, and jobs using feder

ally funded inventions; and ‘‘(6) Federal technology licensing procedures should
balance the public policy needs of adequately protect

ing the rights of the public, encouraging companies
to develop existing government inventions, and mak

ing the entire system of licensing government tech

nologies more consistent and simple.’’

C ONGRESSIONAL F INDINGS ; 1996 A MENDMENT

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, envi

ronmental, 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 tech

nology and industrial innovation in the United States
depends upon actions by business. ‘‘(3) The commercialization of technology and in

dustrial innovation in the United States will be en

hanced if companies, in return for reasonable com

pensation to the Federal Government, can more eas

ily obtain exclusive licenses to inventions which de

velop as a result of cooperative research with sci

entists employed by Federal laboratories.’’

D EFINITIONS OF T ERMS ; 1992 A MENDMENT

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]—Page 1756 TITLE 15—COMMERCE AND TRADE § 3701

‘‘(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 manu

facturing and industrial processes;
‘‘(3) the term ‘advanced materials’ means a field of
research including the study of composites, ceramics,
metals, polymers, superconducting materials, mate

rials 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 Insti

tute 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.’’

C ONGRESSIONAL S TATEMENT OF P OLICY ; 1992

A MENDMENT

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 eco

nomic competitiveness of the Nation, it is necessary to
strengthen the programs and activities of the Depart

ment of Commerce’s Technology Administration and
National Institute of Standards and Technology.’’

N ATIONAL C OMMISSION ON R EDUCING C APITAL C OSTS

FOR E MERGING T ECHNOLOGY

Pub. L. 102–245, title IV, §401, Feb. 14, 1992, 106 Stat.
21, provided that:
‘‘(a) E STABLISHMENT AND P URPOSE .—There is estab

lished a National Commission on Reducing Capital
Costs for Emerging Technology (hereafter in this sec

tion referred to as the ‘Commission’), for the purpose of
developing recommendations to increase the competi

tiveness of United States industry by encouraging in

vestments in research, the development of new process
and product technologies, and the production of those
technologies.
‘‘(b) I SSUES .—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 dec

ade 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 pay

offs, such as the development and commercialization
of new technology?
‘‘(4) To what extent does the structure of the finan

cial 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 develop

ment, purchase advanced manufacturing equipment,
and fund other investments necessary to commer

cialize advanced technology?
‘‘(5) In what ways do Government regulations influ

ence 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 manufactur

ing techniques, in research and development, and in
other activities necessary to commercialize and
produce new technologies? ‘‘(8) What specific policies should the Federal Gov

ernment 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) M EMBERSHIP .—(1) The Commission shall be com

posed of 9 members who are eminent in such fields as
advanced technology, manufacturing, finance, and
international economics and who are appointed as fol

lows: ‘‘(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 ap

pointed 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 Sen

ate. ‘‘(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) P ROCEDURES .—(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 re

quire 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) R EPORTS .—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 contain

ing legislative and other recommendations with respect
to the issues addressed under subsection (b). ‘‘(f) C ONSULTATION .—The Commission shall consult,
as appropriate, with the Commission on Technology
and Procurement established by section 505 of this Act
[set out below]. ‘‘(g) T ERMINATION .—The Commission shall terminate
6 months after the submission of its report under sub

section (e). ‘‘(h) A UTHORIZATION OF A PPROPRIATIONS .—There are
authorized to be appropriated to carry out this section
such sums as may be necessary for the fiscal years 1992

and 1993.’’

R ESEARCH , D EVELOPMENT , T ECHNOLOGY U TILIZATION

,

AND G OVERNMENT P ROCUREMENT P OLICY

Pub. L. 102–245, title V, §505, Feb. 14, 1992, 106 Stat. 25,
provided that: ‘‘(a) E STABLISHMENT OF C OMMISSION .—The Secretary,

in consultation with the Administrator of the Office of
Federal Procurement Policy, shall establish a Commis

sion on Technology and Procurement (hereafter in this
section referred to as the ‘Commission’), for the pur

poses of analyzing the effect of Federal Government
procurement laws, procedures, and policies on the de

velopment of advanced technologies within the United
States and making recommendations on how Federal
policy could be changed to promote further the devel

opment of advanced technologies. ‘‘(b) I SSUES .—The Commission shall address the fol

lowing issues: ‘‘(1) To what extent, if any, should Federal Govern

ment technology purchase strategies be used to givePage 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 Govern

ment purchases of advanced technology-based prod

ucts be based on performance specifications rather
than on product specifications? Should Federal Gov

ernment 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 prac

tices 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 Govern

ment documents specify standards that are beneficial
to domestic suppliers, aid the compatibility of ad

vanced technologies, and speed the commercial ac

ceptance 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 ad

vances available? ‘‘(8) To what extent should worldwide, state of the
art technology be required in Federal Government
procurement? ‘‘(c) M EMBERSHIP AND P ROCEDURES .—(1) The Commis

sion 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 De

fense, 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 tech

nology businesses representing manufacturing and
services industries, including at least 1 member rep

resenting 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 chair

man from among the members of the Commission. The
chairman shall call the first meeting of the Commis

sion within 90 days after the date of enactment of this
Act [Feb. 14, 1992]. ‘‘(5) The Secretary and the Administrator of the Of

fice 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 ex

penses in accordance with subchapter I of chapter 57 of
title 5, United States Code.
‘‘(d) R EPORTS .—(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 recom

mendations 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 recom

mendations with respect to the issues addressed under
subsection (b).
‘‘(e) C ONSULTATION .—The Commission shall consult,
as appropriate, with the National Commission on Re

ducing Capital Costs for Emerging Technology.
‘‘(f) T ERMINATION .—The Commission shall terminate 6
months after the submission of its final report under
subsection (d)(2).
‘‘(g) A UTHORIZATION OF A PPROPRIATIONS .—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.’’

S TUDY OF T ESTING AND C ERTIFICATION

Pub. L. 102–245, title V, §508, Feb. 14, 1992, 106 Stat. 29,
provided that:
‘‘(a) C ONTRACT W ITH N ATIONAL R ESEARCH C OUNCIL .— 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 inter

national product testing and certification issues. The

National Research Council will be asked to address the
following issues and make recommendations as appro

priate:
‘‘(1) The impact on United States manufacturers,
testing and certification laboratories, certification
organizations, and other affected bodies of the Euro

pean Community’s plans for testing and certification
of regulated and nonregulated products of non-Euro

pean origin.
‘‘(2) Ways for United States manufacturers to gain
acceptance of their products in the European Com

munity and in other foreign countries and regions.
‘‘(3) The feasibility and consequences of having mu

tual recognition agreements between testing and cer

tification organizations in the United States and
those of major trading partners on the accreditation
of testing and certification laboratories and on qual

ity control requirements.
‘‘(4) Information coordination regarding product ac

ceptance and conformity assessment mechanisms be

tween the United States and foreign governments.
‘‘(5) The appropriate Federal, State, and private
roles in coordination and oversight of testing, certifi

cation, accreditation, and quality control to support

national and international trade.
‘‘(b) M EMBERSHIP .—In selecting the members of the
review panel, the National Research Council shall con

sult with and draw from, among others, laboratory ac

creditation organizations, Federal and State govern

ment agencies involved in testing and certification,
professional societies, trade associations, small busi

ness, and labor organizations.
‘‘(c) R EPORT .—A report based on the findings and rec

ommendations 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.’’

C ONGRESSIONAL F INDINGS AND P URPOSES ; 1989

A MENDMENT

Pub. L. 101–189, div. C, title XXXI, §3132, Nov. 29, 1989,
103 Stat. 1674, provided that:
‘‘(a) F INDINGS .—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 com

petitiveness in both domestic and international mar

kets;Page 1758 TITLE 15—COMMERCE AND TRADE § 3702

‘‘(3) innovation and the rapid application of com

mercially 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 ad

vanced technologies and skilled scientists, engineers,
and technicians who could contribute substantially
to the posture of United States industry in inter

national competition; ‘‘(5) improved opportunities for cooperative re

search and development agreements between contrac

tor-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 na

tional well-being; and ‘‘(6) more effective cooperation between those lab

oratories and the private sector in the United States
is required to provide speed and certainty in the tech

nology transfer process. ‘‘(b) P URPOSES .—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 pri

vate sector in the United States; and ‘‘(2) enhance collaboration between universities,
the private sector, and Government-owned, contrac

tor-operated laboratories in order to foster the devel

opment of technologies in areas of significant eco

nomic potential.’’

E X . O RD . N O . 13185. T O S TRENGTHEN THE F EDERAL

G OVERNMENT -U NIVERSITY R ESEARCH P ARTNERSHIP

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 or

dered as follows:

S ECTION 1. Principles of the Government-University Part

nership . 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 pro

ductive, successfully promoting the discovery of knowl

edge, stimulating technological innovation, improving
the quality of life, educating and training the next gen

eration 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 operat

ing principles that are fully described in the April 1999
National Science and Technology Council report, ‘‘Re

newing 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-Uni

versity research partnership. (a) The guiding principles that shall govern inter

actions between the Federal Government and univer

sities 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 agen

cies, 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.

S EC . 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 re

search and education, policy making, regulatory activi

ties, 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 de

termine the overall health of the Government-Univer

sity 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.

S EC . 3. Judicial Review . This order does not create any
enforceable rights against the United States, its agen

cies, its officers, or any person.

W ILLIAM J. C LINTON

. § 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 execu

tive branch to study and stimulate tech

nology; (2) promoting technology development
through the establishment of cooperative re

search centers; (3) stimulating improved utilization of feder

ally funded technology developments, includ

ing inventions, software, and training tech

nologies, by State and local governments and
the private sector; (4) providing encouragement for the develop

ment 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, in

dustry, 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.)

A MENDMENTS

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

operative 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 Com

merce.Page 1759 TITLE 15—COMMERCE AND TRADE § 3704

(2) ‘‘Centers’’ means the Cooperative Re

search Centers established under section 3705

or 3707 of this title. (3) ‘‘Nonprofit institution’’ means an organi

zation owned and operated exclusively for sci

entific 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 labora

tory, any federally funded research and devel

opment 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 Govern

ment, 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 dis

covery which is or may be patentable or other

wise protected under title 35 or any novel vari

ety 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 Adminis

tration. (10) ‘‘Training technology’’ means computer

software and related materials which are de

veloped by a Federal agency to train employ

ees of such agency, including but not limited
to software for computer-based instructional
systems and for interactive video disc sys

tems. (11) ‘‘Clearinghouse’’ means the Clearing

house for State and Local Initiatives on Pro

ductivity, Technology, and Innovation estab

lished 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.)

R EFERENCES IN T EXT

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.

A MENDMENTS

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 Sec

retary’’, 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), sub

stituted ‘‘Technology Policy’’ for ‘‘Productivity, Tech

nology, and Innovation’’.
Par. (3). Pub. L. 100–519, §201(d)(1)(B), amended par. (3)
generally, substituting provisions defining ‘‘Under Sec

retary’’ 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 ‘‘In

dustrial Technology’’.
Par. (3). Pub. L. 99–502, §9(b)(2)(B), substituted ‘‘‘As

sistant Secretary’ means the Assistant Secretary for
Productivity, Technology, and Innovation’’ for ‘‘‘Direc

tor’ means the Director of the Office of Industrial Tech

nology’’.
Par. (4). Pub. L. 99–502, §9(b)(2)(C), substituted ‘‘Coop

erative 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), redes

ignated pars. (7) and (8) as (6) and (7), respectively, and
added pars. (8) to (12).

§ 3704. Experimental Program to Stimulate Com

petitive 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 Competi

tive Technology (referred to in this subsection
as the ‘‘program’’). The purpose of the pro

gram shall be to strengthen the technological
competitiveness of those States that have his

torically 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 commit

tees 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 re

search;Page 1760 TITLE 15—COMMERCE AND TRADE § 3704

(C) technology deployment and diffusion;

and
(D) the strengthening of technological ca

pabilities through consortia comprised of—
(i) technology-based small business
firms;
(ii) industries and emerging companies;
(iii) universities; and
(iv) State and local development agen

cies 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 in

cludes a review of the merits of the activi

ties 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 sub

section (a), the Secretary shall coordinate the
program with other programs of the Department

of Commerce.

(c) Minority Serving Institution Digital and Wire

less Technology Opportunity Program

(1) In general

The Secretary shall establish a Minority
Serving Institution Digital and Wireless Tech

nology 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 net

working 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, coopera

tive agreement, or contract under this sub

section, 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 in

clude 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 insti

tution will ensure that digital and wireless
networking technology will be made acces

sible to, and employed by, students, faculty,
and administrators. The Secretary, consist

ent with subparagraph (C) and in consulta

tion with the advisory council established under subparagraph (B), shall establish pro

cedures to review such applications. The
Secretary shall publish the application re

quirements and review criteria in the Fed

eral Register, along with a statement de

scribing 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 partici

pation by eligible institutions in the pro

gram established under paragraph (1), and on
the procedures to review applications sub

mitted to the program. In selecting the
members of the advisory council, the Sec

retary shall consult with representatives of
appropriate organizations, including rep

resentatives of eligible institutions, to en

sure that the membership of the advisory
council includes representatives of minority
businesses and eligible institution commu

nities. 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 effec

tively and successfully utilize the proposed
grant, cooperative agreement, or contract to
carry out the program described in para

graph (1). The Secretary shall ensure that
the review panels include representatives of
minority serving institutions and others
who are knowledgeable about eligible insti

tutions and technology issues. The Sec

retary shall ensure that no individual as

signed under this subsection to review any
application has a conflict of interest with re

gard to that application. The Secretary shall

take into consideration the recommenda

tions of the review panel in determining
whether to award a grant, cooperative agree

ment, 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 con

tracts may only be awarded to eligible insti

tutions. Eligible institutions may seek fund

ing under this subsection for consortia,
which may include other eligible institu

tions, a State or a State educational agency,
local educational agencies, institutions of
higher education, community-based organi

zations, 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 de

velop strategic plans to implement grants,
cooperative agreements, or contracts award

ed under this subsection.

(D) Institutional diversity

In awarding grants, cooperative agree

ments, 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 eligi

ble institution with the greatest dem

onstrated need for assistance.

(4) Authorized activities

An eligible institution may use a grant, co

operative agreement, or contract awarded

under this subsection—
(A) to acquire equipment, instrumenta

tion, networking capability, hardware and
software, digital network technology, wire

less technology, and infrastructure to fur

ther the objective of the program described
in paragraph (1);
(B) to develop and provide training, edu

cation, and professional development pro

grams, including faculty development, to in

crease 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 spe

cialist 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 tech

nical support, technical assistance work

shops, and distance learning services; or
(E) to foster the use of digital and wireless
networking technology to improve research
and education, including scientific, mathe

matics, engineering, and technology instruc

tion.

(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 eligi

ble institutions.

(6) Matching requirement

The Secretary may not award a grant, coop

erative 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, coopera

tive agreement, or contract was awarded, such
institution shall make available, directly, or
through donations from public or private enti

ties, non-Federal contributions in an amount
equal to 25 percent of the grant, cooperative
agreement, or contract awarded by the Sec

retary, or $500,000, whichever is the lesser
amount. The Secretary shall waive the match

ing requirement for any institution or consor

tium 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 con

tract.
(B) Independent assessments

(i) Contract to conduct assessments

Not later than 6 months after August 14,
2008, the Secretary shall enter into a con

tract with the National Academy of Public
Administration to conduct periodic assess

ments 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 train

ing of students, faculty, and staff at eli

gible institutions that have been award

ed 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, fac

ulty, and staff at all eligible institu

tions; (III) an evaluation of the procedures
established under paragraph (2)(A); and (IV) recommendations for improving
the program, including recommenda

tions 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 recom

mendations of the National Academy of

Public Administration.

(8) Definitions

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

(A) Digital and wireless networking tech

nology

The term ‘‘digital and wireless networking
technology’’ means computer and commu

nications equipment and software that fa

cilitates 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 sec

tion 1061(2) of title 20, an institution iden

tified in subparagraph (A), (B), or (C) of
section 1063b(e)(1) of title 20, or a consor

tium of institutions described in this
clause; (ii) a Hispanic-serving institution, as de

fined in section 1101a(a)(5) of title 20; (iii) a Tribal College or University, as de

fined in section 1059c(b)(3) of title 20; (iv) an Alaska Native-serving institu

tion, as defined in section 1059d(b) of title
20; (v) a Native Hawaiian-serving institu

tion, 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, non

tribal institution, as defined in section
1059f of title 20; (viii) an Asian American and Native
American Pacific Islander-serving institu

tion, as defined in section 1059g of title 20;

or (ix) a minority institution, as defined in
section 1067k of title 20, with an enroll

ment of needy students, as defined in sec

tion 1058(d) of title 20.
(C) Institution of higher education

The term ‘‘institution of higher edu

cation’’ 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 de

fined 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.)

A MENDMENTS

2008—Subsec. (c). Pub. L. 110–315 added subsec. (c).
2007—Pub. L. 110–69, §3002(a)(5), substituted ‘‘Experi

mental program to stimulate competitive technology’’
for ‘‘Commerce and technological innovation’’ in sec

tion catchline.
Subsec. (a). Pub. L. 110–69, §3002(a)(3)(B), (E), sub

stituted ‘‘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), sub

stituted ‘‘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), redesig

nated 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 Com

merce for Technology to submit a report on the Experi

mental 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), re

designated subsec. (a)(6) as (b), substituted ‘‘subsection
(a)’’ for ‘‘this subsection’’, and struck out former sub

sec. (b) which related to appointment of Under Sec

retary of Commerce for Technology and Assistant Sec

retary 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 du

ties 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 gov

ernments’’.
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 Sec

retary for Productivity, Technology, and Innovation.’’
Subsec. (c). Pub. L. 100–519, §201(c)(2), substituted
‘‘Under Secretary, as appropriate,’’ for ‘‘Assistant Sec

retary, on a continuing basis,’’ in introductory provi

sions.
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), redesig

nated former par. (6) as (10) and substituted ‘‘UnderPage 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), redes

ignated former pars. (7) to (10) as (11) to (14), respec

tively.
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 Ex

ecutive 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 provi

sions 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).

C ONSTRUCTION

Pub. L. 110–69, title III, §3002(b), Aug. 9, 2007, 121 Stat.
586, provided that: ‘‘The amendments made by sub

section (a) [amending this section] shall not be con

strued to eliminate the National Institute of Standards
and Technology or the National Technical Information

Service.’’

T RANSITION P ROVISION

Pub. L. 100–519, title II, §201(e), Oct. 24, 1988, 102 Stat.
2594, provided that: ‘‘The individual serving as the As

sistant Secretary of Commerce for Productivity, Tech

nology, and Innovation immediately before the date of
enactment of this Act [Oct. 24, 1988] shall serve as Act

ing Assistant Secretary of Commerce for Technology
Policy until the Assistant Secretary takes office.’’

C OMMERCIAL S PACE P ROGRAMS

Pub. L. 100–519, title II, §201(f), as added by Pub. L.
100–685, title II, §219, Nov. 17, 1988, 102 Stat. 4095, pro

vided that: ‘‘Nothing in this section [amending this sec

tion, 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 Of

fice 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 Initia

tives on Productivity, Technology, and Inno

vation

(a) Establishment

There is established within the Office of Pro

ductivity, Technology, and Innovation a Clear

inghouse for State and Local Initiatives on Pro

ductivity, 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 govern

ments to enhance competitiveness.

(b) Responsibilities

The Clearinghouse may—
(1) establish relationships with State and
local governments, and regional and multi

state organizations of such governments,
which carry out such initiatives;
(2) collect information on the nature, extent,
and effects of such initiatives, particularly in

formation useful to the Congress, Federal
agencies, State and local governments, re

gional 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 ini

tiatives, including assistance in determining
sources of assistance from Federal agencies
which may be available to support such initia

tives;
(5) study ways in which Federal agencies, in

cluding 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, ad

vise State and local governments, and regional
and multistate organizations of such govern

ments, as to which programs are most effec

tive in enhancing the competitiveness of
American business through the stimulation of
productivity, technology, and innovation; and
(8) make use of, and disseminate, the nation

wide study of State industrial extension pro

grams 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.)

C ODIFICATION

Subsec. (d) of this section, which required the Sec

retary 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 pro

ductivity, technology, and innovation, terminated, ef

fective 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.Page 1764 TITLE 15—COMMERCE AND TRADE § 3704b

1 So in original. Probably should be capitalized. 2 See 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 trans

actions, in accordance with all relevant provi

sions of Federal law applicable to such con

tracts 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 in

formation to American business and industry,
and for other purposes’’ enacted September 9,
1950 (15 U.S.C. 1152), retain and, subject to ap

propriations 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 Oc

tober 24, 1988. The details of any such con

tract, and a statement of its effect on the op

erations 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 nec

essary 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, reve

nues, 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 Serv

ice and its employees, and shall not be trans

ferred from the Service, by contract or other

wise, 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, mate

rials, 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 reve

nues 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 vest

ed in a Director who shall report to the Director

of the National Institute of Standards and Tech

nology 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 recommenda

tions from the major users and beneficiaries of

the Service’s activities and shall select individ

uals experienced in providing or utilizing tech

nical information. (3) The Advisory Board shall review the gen

eral policies and operations of the Service, in

cluding policies in connection with fees and
charges for its services, and shall advise the Sec

retary 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 fi

nancial statements beginning with fiscal year
1988, to be conducted in accordance with gener

ally accepted accounting principles.

(e) Functions

The Secretary of Commerce, acting through
the Service, shall— (1) establish and maintain a permanent re

pository 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 de

pository libraries as part of the Depository Li

brary Program of the Government Printing Of

fice; (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 en

gineering 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 techno

logical, scientific, and engineering informa

tion 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 Direc

tor 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 Con

gress a report on the current fee structure of the
Service, including an explanation of the basis
for the fees, taking into consideration all appli

cable costs, and the adequacy of the fees, along
with reasons for the declining sales at the Serv

ice of scientific, technical, and engineering pub

lications. Such report shall explain any actions
planned or taken to increase such sales at rea

sonable fees. (3) The Secretary shall submit an annual re

port 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 an

nual 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 cal

endar days of—
(A) any proposed reduction-in-force;
(B) any joint venture or cooperative agree

ment which involves a financial incentive to
the joint venturer or contractor; and
(C) any change in the operating plan submit

ted 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.)

R EFERENCES IN T EXT

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 Amend

ment 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 dissemi

nation of technological, scientific, and engineering in

formation 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.

C ODIFICATION

Section was enacted as part of the National Tech

nical 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.

A MENDMENTS

2007—Subsec. (b). Pub. L. 110–161 substituted ‘‘Direc

tor of the National Institute of Standards and Tech

nology’’ for ‘‘Under Secretary of Commerce for Tech

nology’’.
1992—Subsec. (e)(5). Pub. L. 102–245 inserted
‘‘, including producing and disseminating information
products in electronic format’’ after ‘‘engineering in

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

T ERMINATION OF A DVISORY B OARDS

Advisory boards established after Jan. 5, 1973, to ter

minate not later than the expiration of the 2-year pe

riod beginning on the date of their establishment, un

less, 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 estab

lished by the Congress, its duration is otherwise pro

vided 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.

N ATIONAL T ECHNICAL I NFORMATION S ERVICE R EVOLVING

F UND

Pub. L. 102–395, title II, Oct. 6, 1992, 106 Stat. 1853, pro

vided that: ‘‘For establishment of a National Technical
Information Service Revolving Fund, $8,000,000 without
fiscal year limitation: Provided , That unexpended bal

ances 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 activi

ties 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 ex

penses incurred in performing the activities of the Na

tional Technical Information Service, including mod

ernization, 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 In

formation Service associated with the acquisi

tion, processing, storage, bibliographic control,
and archiving of information and documents
shall be recovered primarily through the collec

tion of fees.

(Pub. L. 102–245, title I, §103(c), Feb. 14, 1992, 106
Stat. 8.)

C ODIFICATION

Section was enacted as part of the American Tech

nology Preeminence Act of 1991, and not as part of the
Stevenson-Wydler Technology Innovation Act of 1980
which comprises this chapter.Page 1766 TITLE 15—COMMERCE AND TRADE § 3704b–2

§ 3704b–2. Transfer of Federal scientific and tech

nical information

(a) Transfer

The head of each Federal executive depart

ment or agency shall transfer in a timely man

ner to the National Technical Information Serv

ice unclassified scientific, technical, and engi

neering information which results from feder

ally funded research and development activities
for dissemination to the private sector, aca

demia, State and local governments, and Fed

eral 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 as

sessments generated pursuant to section 3710(c)
of this title, and information regarding training
technology and other federally owned or origi

nated technologies. The Secretary shall issue
regulations within one year after February 14,
1992, outlining procedures for the ongoing trans

fer of such information to the National Tech

nical Information Service.

(b) Omitted

(Pub. L. 102–245, title I, §108, Feb. 14, 1992, 106
Stat. 13.)

C ODIFICATION

Subsec. (b) of this section, which required the Sec

retary, as part of the annual report required under sec

tion 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 an

nual report. See Codification note set out after section

3704b of this title.
Section was enacted as part of the American Tech

nology 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 univer

sity, 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 in

dustry and universities in cooperative techno

logical 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 impor

tance, 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 ex

pertise, where appropriate, that exists in Fed

eral laboratories; and (6) the development of continuing financial
support from other mission agencies, from
State and local government, and from indus

try 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 busi

nesses in the generation, evaluation, and de

velopment of technological ideas supportive of

industrial innovation and new business ven

tures; (3) technical assistance and advisory serv

ices 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 ac

tivities under this subsection.

(c) Requirements

Prior to establishing a Center, the Secretary

shall find that—
(1) consideration has been given to the po

tential contribution of the activities proposed
under the Center to productivity, employ

ment, 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 in

stitution 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 non

exclusive, 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 institu

tion’s capabilities and geographical location;

and
(5) consideration has been given to any ef

fects upon competition of the activities pro

posed 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 devel

oping 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.)

P RIOR P ROVISIONS

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

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

A MENDMENTS

1986—Subsec. (a). Pub. L. 99–502, §9(b)(7), substituted
‘‘Cooperative Research Centers’’ for ‘‘Centers for Indus

trial 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, au

thorized supporting agency to require the Center to
grant licenses to the invention to responsible appli

cants 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 sub

sec. (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.’’

M ODEL P ROGRAM

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 Om

nibus Trade and Competitiveness Act of 1988 [Pub. L.
100–418, 15 U.S.C. 278 l note], the Secretary of Commerce
shall develop, in consultation with the Secretary of De

fense and the Secretary of Energy, model programs for

national defense laboratories.
‘‘(2) Model programs under this subsection shall in

volve Federal laboratories, small businesses, and part

nership intermediaries. The purpose of the model pro

grams is to demonstrate successful relationships be

tween the Federal Government, State and local govern

ments, and small businesses which encourage economic
growth through the commercial application of tech

nology resulting from federally funded research.
‘‘(3) In this subsection, the term ‘national defense
laboratory’ means any laboratory, federally funded re

search and development center (FFRDC), or other cen

ter 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 lab

oratory, FFRDC, or other center under the Sec

retary’s jurisdiction is to support the national de

fense 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 agree

ment 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 reg

ulation prescribe as being necessary and appro

priate to facilitate effective audit and evalua

tion, 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.)

P RIOR P ROVISIONS

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

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

A MENDMENTS

1988—Subsec. (b). Pub. L. 100–418, §5115(b)(1), sub

stituted ‘‘Assistant Secretary’’ for ‘‘Director’’.

§ 3707. National Science Foundation Cooperative

Research Centers

(a) Establishment and provisions

The National Science Foundation shall pro

vide assistance for the establishment of Cooper

ative 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 innova

tion 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 author

ized to make available nonrenewable planning
grants to universities of nonprofit institutions
for the purpose of developing the plan, as de

scribed under section 3705(c)(3) of this title.

(c) Terms and conditions

Grants, contracts, and cooperative agreements
entered into by the National Science Founda

tion in execution of the powers and duties of the
National Science Foundation under this chapterPage 1768 TITLE 15—COMMERCE AND TRADE § 3708

shall be governed by the National Science Foun

dation 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.)

R EFERENCES IN T EXT

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 Wel

fare. For complete classification of this Act to the
Code, see Short Title note set out under section 1861 of

Title 42 and Tables.

P RIOR P ROVISIONS

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

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

A MENDMENTS

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 ‘‘Coopera

tive 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 Foun

dation shall, on a continuing basis, obtain the
advice and cooperation of departments and
agencies whose missions contribute to or are af

fected 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, En

ergy, Education, Health and Human Services,
Housing and Urban Development, the Environ

mental Protection Agency, National Aero

nautics and Space Administration, Small Busi

ness Administration, Council of Economic Ad

visers, Council on Environmental Quality, and
Office of Science and Technology Policy.

(b) Cooperation

It is the sense of the Congress that depart

ments and agencies, including the Federal lab

oratories, 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 sub

section (b) of this section are authorized to par

ticipate in, contribute to, and serve as resources
for the Centers and for any other activities au

thorized 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 activi

ties of the Centers and any other activities au

thorized under this chapter.

(d) Cooperative efforts

The Secretary and the National Science Foun

dation shall, on a continuing basis, provide each
other the opportunity to comment on any pro

posed 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 du

plication.

(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.)

P RIOR P ROVISIONS

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 classi

fied to section 3709 of this title, prior to repeal by sec

tion 9(a) of Pub. L. 99–502.

A MENDMENTS

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 origi

nal act.
1988—Subsec. (d). Pub. L. 100–418, §5122(c), made tech

nical amendment to references to sections 3705, 3707,
3710, 3710d, 3711a, and 3712 of this title to reflect renum

bering 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 re

search and development. To this end the Federal
Government shall strive where appropriate to
transfer federally owned or originated tech

nology to State and local governments and to
the private sector.
(2) Technology transfer, consistent with mis

sion 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, em

ployee 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 Of

fice 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 Re

search and Technology Applications within the
existing organization. The staffing and funding

levels for these offices shall be determined be

tween 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, engineer

ing, 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 labora

tories shall make available sufficient funding,
either as a separate line item or from the agen

cy’s research and development budget, to sup

port the technology transfer function at the
agency and at its laboratories, including support
of the Offices of Research and Technology Appli

cations. Furthermore, individuals filling posi

tions in an Office of Research and Technology
Applications shall be included in the overall lab

oratory/agency management development pro

gram so as to ensure that highly competent
technical managers are full participants in the
technology transfer process.
(c) Functions of Research and Technology Appli

cations Offices

It shall be the function of each Office of Re

search and Technology Applications— (1) to prepare application assessments for se

lected research and development projects in
which that laboratory is engaged and which in
the opinion of the laboratory may have poten

tial commercial applications; (2) to provide and disseminate information
on federally owned or originated products,
processes, and services having potential appli

cation 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 Trans

fer, and other organizations which link the re

search and development resources of that lab

oratory 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 facili

tate or stimulate the transfer of technology
for the benefit of the region, State, or local ju

risdiction in which the Federal laboratory is

located.

Agencies which have established organizational

structures outside their Federal laboratories
which have as their principal purpose the trans

fer of federally owned or originated technology
to State and local government and to the pri

vate sector may elect to perform the functions
of this subsection in such organizational struc

tures. No Office of Research and Technology Ap

plications 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 infor

mation on federally owned or originated tech

nologies having potential application to State
and local governments and to private indus

try; (2) utilize the expertise and services of the

National Science Foundation and the Federal
Laboratory Consortium for Technology Trans

fer; 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 re

quests 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 reposi

tory and clearinghouse for the collection and
dissemination of nonclassified scientific, tech

nical, and engineering information.
(e) Establishment of Federal Laboratory Consor

tium 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 Fed

eral laboratory concerned) administer tech

niques, training courses, and materials con

cerning technology transfer to increase the
awareness of Federal laboratory employees re

garding the commercial potential of labora

tory 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, re

ceived at the laboratory level, for technical
assistance from States and units of local gov

ernments, businesses, industrial development
organizations, not-for-profit organizations in

cluding universities, Federal agencies and lab

oratories, and other persons, and— (i) to the extent that such requests can be
responded to with published information

available to the National Technical Informa

tion Service, refer such requests to that
Service, and (ii) otherwise refer these requests to the
appropriate Federal laboratories and agen

cies;

(D) facilitate communication and coordina

tion between Offices of Research and Tech

nology Applications of Federal laboratories;Page 1770 TITLE 15—COMMERCE AND TRADE § 3710

(E) utilize (with the consent of the agency
involved) the expertise and services of the Na

tional 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 labora

tory, 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 labora

tory, assist such laboratory to establish pro

grams using technical volunteers to provide

technical assistance to communities related to
such laboratory; (H) facilitate communication and coopera

tion between Offices of Research and Tech

nology Applications of Federal laboratories
and regional, State, and local technology
transfer organizations; (I) when requested, assist colleges or univer

sities, businesses, nonprofit organizations,
State or local governments, or regional orga

nizations to establish programs to stimulate
research and to encourage technology transfer
in such areas as technology program develop

ment, 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 Re

search to compile a compendium of current
and projected Federal Laboratory technologies
and projects that have or will have an in

tended 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 de

sign (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 Con

sortium shall include a senior staff member of
each Federal laboratory which is a member of
the Consortium and a senior representative ap

pointed 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 ad

ministrative services, such as office space, per

sonnel, 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 rep

resentatives of users, and shall not transfer technology directly to the Consortium. Each
Federal laboratory shall conduct and transfer
technology only in accordance with the prac

tices and policies of the Federal agency which
owns, leases, or otherwise uses such Federal lab

oratory. (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 fis

cal year or years involved) under paragraph (7),
concerning the activities of the Consortium and
the expenditures made by it under this sub

section during the year for which the report is
made. Such report shall include an annual inde

pendent audit of the financial statements of the
Consortium, conducted in accordance with gen

erally accepted accounting principles.
(7)(A) Subject to subparagraph (B), an amount
equal to 0.008 percent of the budget of each Fed

eral 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 Na

tional 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 labora

tories, may provide such additional support for
operations of the Consortium as they deem ap

propriate.

(f) Agency reports on utilization

(1) In general

Each Federal agency which operates or di

rects 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 tech

nology transfer program for the preceding
fiscal year and the agency’s plans for con

ducting its technology transfer function, in

cluding its plans for securing intellectual
property rights in laboratory innovations
with commercial promise and plans for man

aging its intellectual property so as to ad

vance the agency’s mission and benefit the
competitiveness of United States industry;

andPage 1771 TITLE 15—COMMERCE AND TRADE § 3710

(B) information on technology transfer ac

tivities for the preceding fiscal year, includ

ing— (i) the number of patent applications
filed; (ii) the number of patents received; (iii) the number of fully-executed li

censes which received royalty income in
the preceding fiscal year, categorized by
whether they are exclusive, partially-ex

clusive, 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 in

cluding such statistical information as the
total earned royalty income, of the top 1
percent, 5 percent, and 20 percent of the li

censes, the range of royalty income, and
the median, except where disclosure of

such information would reveal the amount
of royalty income associated with an indi

vidual license or licensee; (v) what disposition was made of the in

come 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; Con

gress

The agency shall transmit a copy of the re

port to the Secretary of Commerce and the At

torney General for inclusion in the annual re

port 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 re

port 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 inven

tions and methods and options for commer

cialization which are available to the Federal
laboratories, including research and develop

ment limited partnerships; (B) develop and disseminate to appropriate
agency and laboratory personnel model provi

sions for use on a voluntary basis in coopera

tive research and development arrangements;

and (C) furnish advice and assistance, upon re

quest, to Federal agencies concerning their co

operative research and development programs
and projects.

(2) R EPORTS .— (A) A NNUAL REPORT REQUIRED .—The Sec

retary, in consultation with the Attorney Gen

eral and the Commissioner of Patents and
Trademarks, shall submit each fiscal year, be

ginning 1 year after November 1, 2000, a sum

mary report to the President, the United States Trade Representative, and the Congress
on the use by Federal agencies and the Sec

retary of the technology transfer authorities
specified in this chapter and in sections 207

and 209 of title 35.
(B) C ONTENT .—The report shall—
(i) draw upon the reports prepared by the
agencies under subsection (f) of this section;
(ii) discuss technology transfer best prac

tices and effective approaches in the licens

ing and transfer of technology in the context
of the agencies’ missions; and
(iii) discuss the progress made toward de

velopment of additional useful measures of
the outcomes of technology transfer pro

grams of Federal agencies.

(C) P UBLIC 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 in

ventory of all federally funded training soft

ware.
(h) Duplication of reporting

The reporting obligations imposed by this sec

tion—
(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 in

formation concerning technology transfer ac

tivities described in this section in its annual

submission under the Government Perform

ance 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 de

partment to an educational institution or non

profit 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; re

numbered §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,Page 1772 TITLE 15—COMMERCE AND TRADE § 3710

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.)

R EFERENCES IN T EXT

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 sec

tion 1101 of Title 31 and Tables.

A MENDMENTS

2007—Subsec. (g)(1). Pub. L. 110–69 struck out
‘‘through the Under Secretary, and’’ after ‘‘The Sec

retary,’’ 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 pro

gram for the preceding year and the agency’s plans for
conducting its technology transfer function for the up

coming year, including plans for securing intellectual
property rights in laboratory innovations with com

mercial promise and plans for managing such innova

tions 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 coopera

tion with Federal Laboratories’’ in introductory provi

sions.
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 re

port to the President and the Congress on the use by
the agencies and the Secretary of the authorities speci

fied in this chapter. Other Federal agencies shall co

operate 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 Fed

eral 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 Fed

eral agency which operates or directs one or more Fed

eral 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 sec

tion.’’
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, con

ducted in accordance with generally accepted account

ing principles.’’ Subsec. (e)(7)(B)(ii). Pub. L. 102–245, §301(c), sub

stituted ‘‘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 ad

vance 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 agree

ments shall be in such form and contain such informa

tion 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 nec

essary 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 pro

ceeds 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 devel

opment 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 preced

ing year and the agency’s plans for conducting its tech

nology transfer function for the upcoming year, includ

ing 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 con

ducting the technology transfer function at the agen

cy’’. 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 per

cent 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 In

stitute of Standards and Technology’’ for ‘‘National

Bureau of Standards’’ and ‘‘Institute’’ for ‘‘Bureau’’. Subsec. (g)(1). Pub. L. 100–519, §201(d)(3), inserted ref

erence to the Under Secretary. Subsec. (h). Pub. L. 100–519, §212(a)(4), struck out sub

sec. (h) which read as follows: ‘‘None of the activitiesPage 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 ex

isting 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 an

nual budget exceeding $20,000,000 shall provide at least
one professional individual full-time’’, inserted ‘‘Fur

thermore, individuals filling positions in an Office of
Research and Technology Applications shall be in

cluded in the overall laboratory/agency management
development program so as to ensure that highly com

petent technical managers are full participants in the
technology transfer process.’’, substituted ‘‘require

ment set forth in clause (2) of the preceding sentence’’
for ‘‘requirements set forth in (1) and/or (2) of this sub

section’’, and substituted ‘‘such requirement’’ for ‘‘ei

ther 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 Fed

eral Laboratory Consortium for Technology Transfer,’’

for ‘‘the Center for the Utilization of Federal Tech

nology’’ 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 Tech

nology. The Center for the Utilization of Federal Tech

nology 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 Cen

ter for the Utilization of Federal Technology to coordi

nate the activities of the Offices of Research and Tech

nology 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 re

ceive requests for technical assistance from State and
local governments and refer those requests to the ap

propriate 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 agen

cy’s annual budget submission, on the activities’’ for
‘‘prepare biennially a report summarizing the activi

ties’’, 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). E X . O RD . N O . 12591. F ACILITATING A CCESS TO S CIENCE

AND T ECHNOLOGY

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 Amend

ments 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 re

search laboratory into the development of new prod

ucts and processes, it is hereby ordered as follows:

S ECTION 1. Transfer of Federally Funded Technology.
(a) The head of each Executive department and agen

cy, to the extent permitted by law, shall encourage and
facilitate collaboration among Federal laboratories,
State and local governments, universities, and the pri

vate sector, particularly small business, in order to as

sist in the transfer of technology to the marketplace.
(b) The head of each Executive department and agen

cy shall, within overall funding allocations and to the
extent permitted by law:
(1) delegate authority to its government-owned, gov

ernment-operated Federal laboratories:
(A) to enter into cooperative research and develop

ment agreements with other Federal laboratories,
State and local governments, universities, and the pri

vate 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 de

veloped from federally funded research and develop

ment efforts;
(3) ensure that State and local governments, univer

sities, and the private sector are provided with infor

mation on the technology, expertise, and facilities
available in Federal laboratories;
(4) promote the commercialization, in accord with
my Memorandum to the Heads of Executive Depart

ments 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 ex

change for royalty-free use by or on behalf of the gov

ernment;
(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 limi

tations 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 en

acted on November 8, 1984, unless, in the case of an in

vention that has not been marketed, the funding agen

cy determines, based on information in its files, that
the contractor or grantee has not taken adequate steps
to market the inventions, in accordance with applica

ble law or an Institutional Patent Agreement;
(6) implement, as expeditiously as practicable, roy

alty-sharing programs with inventors who were em

ployees 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 develop

ment of a uniform policy permitting Federal contrac

-Page 1774 TITLE 15—COMMERCE AND TRADE § 3710a

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.

S EC . 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. Consist

ent 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 po

tential 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 labora

tory 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 individ

ual companies that conduct the majority of their busi

ness in the United States; and (c) Limit its participation in any consortium so es

tablished to the use of laboratory personnel and facili

ties. However, each laboratory may also provide finan

cial 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 consor

tia shall be limited to a maximum of $5 million per

annum. S EC . 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.

S EC . 4. International Science and Technology . In order

to ensure that the United States benefits from and
fully exploits scientific research and technology devel

oped abroad, (a) The head of each Executive department and agen

cy, when negotiating or entering into cooperative re

search and development agreements and licensing ar

rangements with foreign persons or industrial organiza

tions (where these entities are directly or indirectly
controlled by a foreign company or government), shall,
in consultation with the United States Trade Rep

resentative, give appropriate consideration: (1) to whether such foreign companies or govern

ments permit and encourage United States agencies,
organizations, or persons to enter into cooperative re

search and development agreements and licensing ar

rangements on a comparable basis; (2) to whether those foreign governments have poli

cies 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 ade

quate measures to prevent the transfer of strategic
technology to destinations prohibited under such na

tional security export controls, either through partici

pation in the Coordinating Committee for Multilateral
Export Controls (COCOM) or through other inter

national agreements to which the United States and
such foreign governments are signatories. (b) The Secretary of State shall develop a recruit

ment 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 de

velop a central mechanism for the prompt and efficient dissemination of science and technology information
developed abroad to users in Federal laboratories, aca

demic institutions, and the private sector on a fee-forservice basis.

S EC . 5. Technology Transfer from the Department of De

fense . 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 Sec

retary shall then accelerate efforts to make these tech

nologies more readily available to United States indus

tries and universities.

S EC . 6. Basic Science and Technology Centers . The head
of each Executive department and agency shall exam

ine 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 Govern

ment, 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.

S EC . 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 representa

tive Federal laboratories, or their designees, in order to
identify and disseminate creative approaches to tech

nology transfer from Federal laboratories. The task
force will report to the President on the progress of and
problems with technology transfer from Federal lab

oratories. (b) Specifically, the report shall include: (1) a listing of current technology transfer programs
and an assessment of the effectiveness of these pro

grams; (2) identification of new or creative approaches to
technology transfer that might serve as model pro

grams 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 ap

propriate, related cooperative research and develop

ment venture programs.

S EC . 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 con

sideration, under this Order, any technology that
would be, if transferred, detrimental to the interests of
national security.

R ONALD R EAGAN

. § 3710a. Cooperative research and development
agreements

(a) General authority

Each Federal agency may permit the director
of any of its Government-operated Federal lab

oratories, and, to the extent provided in an
agency-approved joint work statement or, if per

mitted by the agency, in an agency-approved an

nual strategic plan, the director of any of its
Government-owned, contractor-operated labora

tories— (1) to enter into cooperative research and de

velopment agreements on behalf of such agen

cy (subject to subsection (c) of this section)
with other Federal agencies; units of State or
local government; industrial organizations (in

cluding corporations, partnerships, and lim

ited partnerships, and industrial developmentPage 1775 TITLE 15—COMMERCE AND TRADE § 3710a

1 See References in Text note below. organizations); public and private foundations;
nonprofit organizations (including univer

sities); 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 authori

ties (in the case of a Government-owned, con

tractor-operated laboratory, subject to sub

section (c) of this section) for inventions made
or other intellectual property developed at the
laboratory and other inventions or other intel

lectual property that may be voluntarily as

signed to the Government.
(b) Enumerated authority

(1) Under an agreement entered into pursuant
to subsection (a)(1) of this section, the labora

tory may grant, or agree to grant in advance, to
a collaborating party patent licenses or assign

ments, or options thereto, in any invention
made in whole or in part by a laboratory em

ployee under the agreement, or, subject to sec

tion 209 of title 35, may grant a license to an in

vention 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 op

tion to hold licensing rights that collectively
encompass the rights that would be held under
such an exclusive license by one party. In con

sideration for the Government’s contribution
under the agreement, grants under this para

graph shall be subject to the following explicit

conditions: (A) A nonexclusive, nontransferable, irrev

ocable, paid-up license from the collaborating
party to the laboratory to practice the inven

tion or have the invention practiced through

out the world by or on behalf of the Govern

ment. In the exercise of such license, the Gov

ernment shall not publicly disclose trade se

crets 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 ob

tained 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 nonexclu

sive, partially exclusive, or exclusive license
to use the invention in the applicant’s li

censed field of use, on terms that are reason

able 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 excep

tional circumstances and only if the Govern

ment determines that— (i) the action is necessary to meet health
or safety needs that are not reasonably sat

isfied by the collaborating party; (ii) the action is necessary to meet re

quirements for public use specified by Fed

eral 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 provi

sions described in subsection (c)(4)(B) of this

section.

This determination is subject to administra

tive 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 re

tain title to any invention made solely by its
employee in exchange for normally granting the
Government a nonexclusive, nontransferable, ir

revocable, paid-up license to practice the inven

tion 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 re

strictions of the agency; (C) to the extent consistent with any appli

cable agency requirements or standards of
conduct, permit an employee or former em

ployee 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 Gov

ernment 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 agree

ment by a collaborating party or employee of
a collaborating party.

(4) A collaborating party in an exclusive li

cense in any invention made under an agree

ment entered into pursuant to subsection (a)(1)
of this section shall have the right of enforce

ment under chapter 29 of title 35. (5) A Government-owned, contractor-operated
laboratory that enters into a cooperative re

search and development agreement pursuant to
subsection (a)(1) of this section may use or obli

gate 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; andPage 1776 TITLE 15—COMMERCE AND TRADE § 3710a

(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 Administra

tion, a designated official of that Administra

tion may waive any license retained by the Gov

ernment 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 sub

paragraph (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 subpara

graph 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 preced

ing year.

(c) Contract considerations

(1) A Federal agency may issue regulations on
suitable procedures for implementing the provi

sions of this section; however, implementation
of this section shall not be delayed until issu

ance of such regulations. (2) The agency in permitting a Federal labora

tory 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 re

solving potential conflicts of interest to make
sure they adequately establish guidelines for sit

uations 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 re

search and development agreements with Fed

eral agencies (including the agency with which
the employee involved is or was formerly em

ployed). (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 agree

ments to enter into shall— (A) give special consideration to small busi

ness firms, and consortia involving small busi

ness firms; and (B) give preference to business units located
in the United States which agree that prod

ucts embodying inventions made under the co

operative research and development agree

ment or produced through the use of such in

ventions will be manufactured substantially in
the United States and, in the case of any in

dustrial organization or other person subject to the control of a foreign company or govern

ment, as appropriate, take into consideration whether or not such foreign government per

mits United States agencies, organizations, or other persons to enter into cooperative re

search and development agreements and li

censing 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 pre

sented 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 pre

sented to him or her by the head of the labora

tory concerned. (B) In any case in which the head of an agency or his designee disapproves or requires the modi

fication of an agreement presented by the direc

tor of a Government-operated laboratory under this section, the head of the agency or such des

ignee 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 Fed

eral agency shall submit to the agency any co

operative 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 spe

cific modifications to, or disapprove the pro

posed agreement and joint work statement with

in 30 days after such submission. No agreement may be entered into by a Government-owned, contractor-operated laboratory under this sec

tion 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 agree

ment 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 develop

ment agreements for purposes of standardizing
practices and procedures, resolving common
legal issues, and enabling review of cooperative
research and development agreements to be car

ried out in a routine and prompt manner. (v) A Federal agency may waive the require

ments of clause (i) or (ii) under such circum

stances 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 finan

cial information that is privileged or confiden

tial, under the meaning of section 552(b)(4) of
title 5, which is obtained in the conduct of re

search 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 contrac

tor-operated laboratory, the agency, for a period
of up to 5 years after development of informa

tion that results from research and development
activities conducted under this chapter and that

would be a trade secret or commercial or finan

cial information that is privileged or confiden

tial if the information had been obtained from a
non-Federal party participating in a cooperative
research and development agreement, may pro

vide appropriate protections against the dis

semination of such information, including ex

emption from subchapter II of chapter 5 of title

5.

(d) Definitions

As used in this section— (1) the term ‘‘cooperative research and de

velopment agreement’’ means any agreement

between one or more Federal laboratories and
one or more non-Federal parties under which
the Government, through its laboratories, pro

vides personnel, services, facilities, equip

ment, 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, fa

cilities, equipment, intellectual property, or
other resources toward the conduct of speci

fied research or development efforts which are
consistent with the missions of the laboratory;
except that such term does not include a pro

curement 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 agen

cy, a substantial purpose of which is the per

formance of research, development, or engi

neering by employees of the Federal Govern

ment; (B) a group of Government-owned, contrac

tor-operated facilities (including a weapon
production facility of the Department of En

ergy) under a common contract, when a sub

stantial purpose of the contract is the per

formance of research and development, or
the production, maintenance, testing, or dis

mantlement of a nuclear weapon or its com

ponents, for the Federal Government; and (C) a Government-owned, contractor-oper

ated 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, mainte

nance, testing, or dismantlement of a nu

clear weapon or its components, for the Fed

eral Government,

but such term does not include any facility
covered by Executive Order No. 12344, dated
February 1, 1982, pertaining to the naval nu

clear propulsion program; (3) the term ‘‘joint work statement’’ means
a proposal prepared for a Federal agency by
the director of a Government-owned, contrac

tor-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 Sec

retary of Energy that is operated for national
security purposes and is engaged in the pro

duction, maintenance, testing, or dismantle

ment 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 pro

gram missions at the laboratory, including
any national security mission.
(2) Classified information and unclassified
sensitive information protected by law, regu

lation, or Executive order shall be appro

priately 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.)

R EFERENCES IN T EXT

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.

A MENDMENTS

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 an

nual strategic plan,’’ for ‘‘joint work statement,’’ in in

troductory provisions.
Subsec. (b)(1). Pub. L. 106–404, in first sentence, in

serted ‘‘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 agree

ment,’’.
Subsec. (b)(6). Pub. L. 106–398, §1 [div. C, title XXXI,
§3196(b)], added par. (6).Page 1778 TITLE 15—COMMERCE AND TRADE § 3710a

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 pro

viding 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 col

laborating party be provided option of choosing exclu

sive license for pre-negotiated field of use for any in

vention under agreement or that collaborating party be
offered option of holding licensing rights that collec

tively encompass rights that would be held under such
exclusive license by one party, to set forth explicit con

ditions 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, irrev

ocable, paid-up license to practice invention by or on

behalf of Government for research or for other Govern

ment purposes. 1993—Subsec. (d)(2)(B). Pub. L. 103–160, §3160(1), in

serted ‘‘(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 Depart

ment of Energy)’’ after ‘‘facility’’ and ‘‘, or the produc

tion, maintenance, testing, or dismantlement of a nu

clear 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), in

serted ‘‘, and, to the extent provided in an agency-ap

proved 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), sub

stituted ‘‘(in the case of a Government-owned, contrac

tor-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), in

serted ‘‘, and, to the extent provided in an agency-ap

proved joint work statement, a Government-owned,
contractor-operated laboratory,’’ after ‘‘Governmentoperated Federal laboratory’’ in introductory provi

sions and inserted concluding provisions ‘‘A Govern

ment-owned, contractor-operated laboratory that en

ters 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 de

velopment mission and objectives of the laboratory.’’ Subsec. (b)(2). Pub. L. 101–189, §3133(a)(2)(B), sub

stituted ‘‘a laboratory employee’’ for ‘‘a Federal em

ployee’’. Subsec. (c)(3)(A). Pub. L. 101–189, §3133(a)(3), sub

stituted ‘‘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), sub

stituted ‘‘or other intellectual property developed at
the laboratory and other inventions or other intellec

tual property’’ for ‘‘at the laboratory and other inven

tions’’. Subsec. (b)(4), (5). Pub. L. 100–519, §301(2), added par.
(4) and redesignated former par. (4) as (5).

R EVIEW OF C OOPERATIVE R ESEARCH AND D EVELOPMENT

A GREEMENT P ROCEDURES

Pub. L. 106–404, §8, Nov. 1, 2000, 114 Stat. 1746, pro

vided that: ‘‘(a) R EVIEW .—Within 90 days after the date of the en

actment 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 re

search 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 Tech

nology Council and the Congress on the general policies
and procedures used by that agency to gather and con

sider the views of other agencies on— ‘‘(1) joint work statements under section 12(c)(5)(C)
or (D) of the Stevenson-Wydler Technology Innova

tion 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 Inno

vation Act of 1980 (15 U.S.C. 3710a(d)(2)(A)), coopera

tive research and development agreements under
such section 12, with respect to major proposed cooperative research
and development agreements that involve critical na

tional security technology or may have a significant
impact on domestic or international competitiveness.
‘‘(b) P ROCEDURES .—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 Tech

nology Council, in conjunction with relevant Federal
agencies and national laboratories, shall—
‘‘(1) determine the adequacy of existing procedures
and methods for interagency coordination and aware

ness with respect to cooperative research and devel

opment 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 agen

cies on joint work statements or cooperative re

search 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 develop

ment 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

1 So in original. Probably should be capitalized. ing procedures, to minimize burdens on Federal agen

cies, 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) L IMITATION .—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 Tech

nology Policy, the National Science and Technology
Council, or any Federal agency the authority to dis

approve a cooperative research and development agree

ment 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.’’

M AGNETIC L EVITATION T ECHNOLOGY

The Secretary of the Army, in cooperation with the
Secretary of Transportation, authorized to conduct re

search and development activities on magnetic levita

tion technology using contracts or cooperative re

search 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.

C ONTRACT P ROVISIONS

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 enact

ment of this Act [Nov. 29, 1989], each agency which has
contracted with a non-Federal entity to operate a Gov

ernment-owned laboratory shall propose for inclusion
in that laboratory’s operating contract, to the extent
not already included and subject to paragraph (6), ap

propriate contract provisions that—
‘‘(A) establish technology transfer, including coop

erative 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 respon

sibilities of the agency and the laboratory with re

spect 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 Inno

vation 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 sub

stantial role (including an advisory role) in the prep

aration, negotiation, or approval of a cooperative re

search and development agreement if, to such em

ployee’s knowledge—
‘‘(i) such employee, or the spouse, child, parent,
sibling, or partner of such employee, or an organi

zation (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 ap

proval of the cooperative research and develop

ment 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 ap

proval of the cooperative research and develop

ment 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 co

operative 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 agen

cy 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 coopera

tive 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 re

viewed the applicable joint work statement under sec

tion 12(c)(5)(C)(i) of the Stevenson-Wydler Technology
Innovation Act of 1980 [15 U.S.C. 3710a(c)(5)(C)(i)] in ad

vance of the matter in which he is to participate and
the nature of any financial interest described in para

graph (1)(C), and where the agency employee deter

mines 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 enact

ment of this Act [Nov. 29, 1989], each agency which has
contracted with a non-Federal entity to operate a Gov

ernment-owned laboratory shall submit a report to the
Congress which includes a copy of each contract provi

sion amended pursuant to this subsection.
‘‘(4) No Government-owned, contractor-operated lab

oratory may enter into a cooperative research and de

velopment agreement under section 12 of the Steven

son-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, contrac

tor-operated laboratory entered into after the expira

tion 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 mak

ing expenditures at a rate of more than
$50,000,000 per fiscal year for research and devel

opment 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 tech

nical personnel for—
(1) inventions, innovations, computer soft

ware, or other outstanding scientific or tech

nological 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 andPage 1780 TITLE 15—COMMERCE AND TRADE § 3710c

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.)

A MENDMENTS

1988—Par. (1). Pub. L. 100–519 inserted ‘‘computer soft

ware,’’ after ‘‘inventions, innovations,’’.

§ 3710c. Distribution of royalties received by Fed

eral 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 assign

ment of inventions under agreements entered
into by Federal laboratories under section 3710a
of this title, and from the licensing of inven

tions of Federal laboratories under section 207 of
title 35 or under any other provision of law,
shall be retained by the laboratory which pro

duced 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 delin

eated by a license or assignment agreement,
to the inventor or coinventors, if the inven

tor’s or coinventor’s rights are assigned to the

United States.
(ii) An agency or laboratory may provide ap

propriate 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 labora

tory makes payments to employees of a lab

oratory 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 in

vention going to the laboratory where the in

vention occurred. The royalties or other pay

ments 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, in

cluding developers of sensitive or classified
technology, regardless of whether the tech

nology has commercial applications;
(ii) to further scientific exchange among
the laboratories of the agency;
(iii) for education and training of employ

ees consistent with the research and devel

opment missions and objectives of the agen

cy 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 intellec

tual property by the agency or laboratory
with respect to inventions made at that lab

oratory, including the fees or other costs for
the services of other agencies, persons, or or

ganizations for intellectual property man

agement and licensing services; or (v) for scientific research and development
consistent with the research and develop

ment missions and objectives of the labora

tory.

(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 para

graph (1), the royalties or other payments re

ceived 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 re

maining 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 enti

tled or for which he is otherwise eligible or limit
the amount thereof. Any payment made to an

inventor as such shall continue after the inven

tor 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 manage

ment 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 re

maining after offsetting the payments to inven

tors, costs, and expenses described in the preced

ing sentence shall be transferred to the agency
for which the services were performed, for dis

tribution 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 arrange

ment with the agency, orPage 1781 TITLE 15—COMMERCE AND TRADE § 3710d

1 See 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 as

signment shall be considered to be a laboratory
for purposes of this section.
(c) Reports

The Comptroller General shall transmit a re

port to the appropriate committees of the Sen

ate and House of Representatives on the effec

tiveness of Federal technology transfer pro

grams, including findings, conclusions, and rec

ommendations for improvements in such pro

grams. The report shall be integrated with, and
submitted at the same time as, the report re

quired 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.)

R EFERENCES IN T EXT

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.

A MENDMENTS

2000—Subsec. (a)(1)(A)(i). Pub. L. 106–404, §7(7)(A), (B),
inserted ‘‘, other than payments of patent costs as de

lineated by a license or assignment agreement,’’ after
‘‘or other payments’’ and ‘‘, if the inventor’s or co

inventor’s rights are assigned to the United States’’ be

fore 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 Fed

eral agencies shall submit, to the appropriate author

ization and appropriation committees of both Houses of
the Congress, summaries of the amount of royalties or
other income received and expenditures made (includ

ing inventor awards) under this section.
‘‘(2) The Comptroller General, five years after Octo

ber 20, 1986, shall review the effectiveness of the various
royalty-sharing programs established under this sec

tion and report to the appropriate committees of the
House of Representatives and the Senate, in a timely
manner, his findings, conclusions, and recommenda

tions 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 in

vention to inventor or coinventors if they had assigned
their rights in invention to United States and to au

thorize 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 provi

sions 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 pur

poses 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 in

come’’, ‘‘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 pay

ments 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 coopera

tive agreement with the agency, or’’.
1989—Subsec. (a)(1). Pub. L. 101–189, §3133(c)(1), in in

troductory provisions, inserted ‘‘by Government-oper

ated 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), in

serted ‘‘, including payments to inventors and devel

opers 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), sub

stituted ‘‘technology of the laboratories’’ for ‘‘tech

nology 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 inven

tion 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), sub

stituted ‘‘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 intro

ductory par. made technical amendment to reference to
section 3710a of this title to reflect renumbering of cor

responding section of original act.

E FFECTIVE D ATE OF 1988 A MENDMENT

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 com

mercialization 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 employ

ment with the Government, to obtain or retain
title to the invention (subject to reservation by
the Government of a nonexclusive, nontrans

-Page 1782 TITLE 15—COMMERCE AND TRADE § 3711

ferrable, irrevocable, paid-up license to practice
the invention or have the invention practiced
throughout the world by or on behalf of the Gov

ernment). In addition, the agency may condition
the inventor’s right to title on the timely filing
of a patent application in cases when the Gov

ernment determines that it has or may have a
need to practice the invention.
(b) ‘‘Special Government employees’’ defined

For purposes of this section, Federal employ

ees 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.)

A MENDMENTS

1996—Subsec. (a). Pub. L. 104–113 substituted ‘‘owner

ship 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 Tech

nology and Innovation Medal, which shall be of
such design and materials and bear such inscrip

tions as the President, on the basis of recom

mendations 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 re

ceived 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 con

tributions 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; re

numbered §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.)

A MENDMENTS

2007—Pub. L. 110–69, §1003(1), which directed substi

tution of ‘‘National Technology and Innovation Medal’’
for ‘‘National Medal’’ in section catchline, was exe

cuted by making the substitution for ‘‘National Tech

nology Medal’’ to reflect the probable intent of Con

gress. Subsec. (a). Pub. L. 110–69, §1003(2), substituted
‘‘Technology and Innovation Medal’’ for ‘‘Technology

Medal’’.

N ATIONAL T ECHNOLOGY M EDAL FOR E NVIRONMENTAL

T ECHNOLOGY

Pub. L. 105–309, §10, Oct. 30, 1998, 112 Stat. 2939, pro

vided 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 es

tablished as a separate nomination category with ap

propriate 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 recommenda

tions received from the Secretary), or the Sec

retary, 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 im

provements in the quality of their goods or serv

ices resulting from the effective practice of
quality management, and which as a con

sequence 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 Sec

retary 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 advertis

ing, 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 serv

ices.
(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 cat

egories within which awards may be made as
initially in effect under paragraph (1), and may
establish separate awards for other organiza

tions including units of government, upon a de

termination that the objectives of this section
would be better served thereby; except that any
such expansion, subdivision, modification, or es

tablishment 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 writ

ing, for the award,
(B) permits a rigorous evaluation of the way
in which its business and other operations
have contributed to improvements in the qual

ity of goods and services, and
(C) meets such requirements and specifica

tions as the Secretary, after receiving recom

mendations from the Board of Overseers estab

lished 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 Tech

nology shall rely upon an intensive evaluation
by a competent board of examiners which shall
review the evidence submitted by the organiza

tion and, through a site visit, verify the accu

racy of the quality improvements claimed. The
examination should encompass all aspects of the
organization’s current practice of quality man

agement, 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 man

agement through the training and involvement
of all levels of personnel in quality improve

ment. (2)(A) The Director of the National Institute of
Standards and Technology shall, under appro

priate 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 sug

gestions for the improvement of the award proc

ess as they deem necessary. The board shall re

port the results of the award activities to the

Director of the National Institute of Standards
and Technology each year, along with its recom

mendations 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 re

sults of their audits as well as detailed expla

nations of all suggestions for improvements.
The Director shall also provide information
about the awards and the successful quality im

provement 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 pro

gram, 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, find

ings, and conclusions of activities conducted
pursuant to this section along with recom

mendations 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; re

numbered §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.)

A MENDMENTS

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 deter

mines 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 sub

category 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 Tech

nology’’ for ‘‘National Bureau of Standards’’ wherever
appearing.

F INDINGS AND P URPOSES

Pub. L. 100–107, §2, Aug. 20, 1987, 101 Stat. 724, pro

vided that:
‘‘(a) F INDINGS .—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 goesPage 1784 TITLE 15—COMMERCE AND TRADE § 3711b

hand in hand with improved productivity, lower
costs, and increased profitability; ‘‘(3) strategic planning for quality and quality im

provement programs, through a commitment to ex

cellence in manufacturing and services, are becoming
more and more essential to the well-being of our Na

tion’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 qual

ity 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-ori

ented and this may require fundamental changes in
the way companies and agencies do business; ‘‘(7) several major industrial nations have success

fully 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 com

panies 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 Amer

ican organizations that wish to learn how to man

age for high quality by making available detailed
information on how winning organizations were
able to change their cultures and achieve eminence. ‘‘(b) P URPOSE .—It is the purpose of this Act [enacting
this section, amending section 3708 of this title, and en

acting 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 sig

nificant 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 sav

ings, and lessen the environmental impact of do

mestic motor vehicles, and the results of such
conference shall be published and then submit

ted to the President and to the Committees on
Science, Space, and Technology and Public
Works and Transportation of the House of Rep

resentatives 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.)

C HANGE OF N AME

Committee on Public Works and Transportation of
House of Representatives treated as referring to Com

mittee 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 periodi

cally make and present the award to domestic
motor vehicle manufacturers, suppliers, or Fed

eral laboratory personnel who, in the opinion of
the Secretary of Transportation, have substan

tially 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 Founda

tion, jointly, shall establish a program to foster
the exchange of scientific and technical person

nel among academia, industry, and Federal lab

oratories. 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; re

numbered §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.)

A MENDMENTS

2005—Pub. L. 109–58 substituted ‘‘, the Secretary of
Energy, and the Director of the National Science Foun

dation’’ 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 outPage 1785 TITLE 15—COMMERCE AND TRADE § 3715

1 See References in Text note below. sections 3710(g) and 3711 of this title not to ex

ceed $3,400,000 for the fiscal year ending Septem

ber 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 Na

tional Technical Information Service.
(b) In addition to the authorization of appro

priations 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 re

main 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; re

numbered §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.)

A MENDMENTS

2007—Subsec. (a)(1). Pub. L. 110–69, §3002(c)(5)(A), sub

stituted ‘‘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 lit

erature program established under section 3704(d) of
this title;’’ after ‘‘Innovation;’’.
1988—Subsec. (a). Pub. L. 100–418, §5152, amended sub

sec. (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 fol

lows: ‘‘In addition to authorizations of appropriations
under subsection (a) of this section, there is authorized
to be appropriated to the Secretary for purposes of car

rying 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 Sep

tember 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; re

numbered §20, Pub. L. 100–418, title V,
§5122(a)(1), Aug. 23, 1988, 102 Stat. 1438; renum

bered §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.)

A MENDMENTS

2000—Pub. L. 106–404 made technical amendments to
references in original act which appear in text as ref

erences to sections 3710a, 3710b, and 3710c of this title.
1986—Pub. L. 99–502, §9(e)(4), made technical amend

ment to references to sections 3710a, 3710b, and 3710c of
this title to reflect renumbering of corresponding sec

tions 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 em

ployee who is the contract officer, may—
(1) enter into a contract or memorandum of
understanding with a partnership inter

mediary that provides for the partnership
intermediary to perform services for the Fed

eral 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 ‘‘part

nership intermediary’’ means an agency of a
State or local government, or a nonprofit entity
owned in whole or in part by, chartered by, fund

ed in whole or in part by, or operated in whole
or in part by or on behalf of a State or local gov

ernment, that assists, counsels, advises, evalu

ates, or otherwise cooperates with small busi

ness firms, institutions of higher education as
defined in section 1141(a) 1 of title 20, or edu

cational institutions within the meaning of sec

tion 2194 of title 10, that need or can make de

monstrably productive use of technology-related
assistance from a Federal laboratory, including
State programs receiving funds under coopera

tive agreements entered into under section
5121(b) of the Omnibus Trade and Competitive

ness Act of 1988 (15 U.S.C. 278 l note).Page 1786 TITLE 15—COMMERCE AND TRADE § 3716

(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; re

numbered §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.)

R EFERENCES IN T EXT

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 ‘‘institu

tion of higher education’’ is defined in section 1001 of
Title 20, Education.

C ODIFICATION

Subsec. (b) of this section, which required the Sec

retary to include in each triennial report required

under section 3704d of this title a discussion and eval

uation of activities carried out pursuant to this sec

tion, was omitted because of the termination of the tri

ennial reporting requirement. See Codification note set

out after section 3704a of this title.

A MENDMENTS

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 busi

ness 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 busi

ness 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.

P ARTICIPATION IN P ROGRAMS P ROMOTING R ESEARCH

, D EVELOPMENT , D EMONSTRATION

, OR T RANSFER OF

T ECHNOLOGY

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, pro

vided 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 De

partment of Energy that functions primarily as a re

search laboratory may respond to solicitations and an

nouncements under programs authorized by the Fed

eral Government for the purpose of promoting the re

search, 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 sub

paragraph (A) may respond to solicitations and an

nouncements 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 Adminis

tration that functions primarily as a research labora

tory may respond to broad agency announcements
under programs authorized by the Federal Government
for the purpose of promoting the research, develop

ment, 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 para

graph shall not be considered to be engaging in a com

petitive procedure and may use, among other authori

ties, 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 solicita

tion 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 criti

cal to the economic security of the United
States; and
(2) list the major research and development
initiatives being undertaken, and the substan

tial investments being made, by the Federal
Government, including its research labora

tories, in each of the critical industries identi

fied 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.)

C ODIFICATION

Subsec. (c) of this section, which required the Sec

retary to annually submit to Congress an update of the
report submitted under subsec. (b) of this section, ter

minated, 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 Tech

nology 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 Coun

cil (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, edu

cation, government, and all other sectors of
the Nation;
(2) to encourage and support the voluntary
adoption of these goals and priorities by com

panies, unions, professional and business asso

ciations, coalition groups, and units of govern

ment, as well as private and nonprofit organi

zations;
(3) to arouse and maintain the interest of the people of the United States in Quality per

formance, 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 Work

place that would bring together in a single
forum national leaders in business, labor, edu

cation, professional societies, the media, gov

ernment, 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 Sec

retary. Members shall include—
(1) at least 2 but not more than 3 representa

tives from manufacturing industry;
(2) at least 2 but not more than 3 representa

tives from service industry;
(3) at least 2 but not more than 3 representa

tives from national Quality not-for-profit or

ganizations;
(4) two representatives from education, one
with expertise in elementary and secondary
education, and one with expertise in post-sec

ondary education;
(5) one representative from labor;
(6) one representative from professional soci

eties;
(7) one representative each from local and
State government;
(8) one representative from the Federal Quality Institute;
(9) one representative from the National In

stitute of Standards and Technology;
(10) one representative from the Department
of Defense;
(11) one representative from a civilian Fed

eral 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 ap

pointments under such paragraphs; the Sec

retary shall appoint not more than 50 percent of
the members to 1 year terms. No member ap

pointed 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 mem

bers initially appointed to the Council as Chair

man. 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 Chair

man or Vice Chairman for more than 2 consecu

tive years.

(e) Executive Director and employees

The Council shall appoint and fix the com

pensation 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 Direc

tor 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 Coun

cil 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 pri

orities 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 ac

tivities for the future; and (5) any other information or recommenda

tions the Council considers appropriate.

(Pub. L. 102–245, title V, §507, Feb. 14, 1992, 106
Stat. 27.)

R EFERENCES IN T EXT

This Act, referred to in subsec. (f), is Pub. L. 102–245,
Feb. 14, 1992, 106 Stat. 7, known as the American Tech

nology Preeminence Act of 1991. For complete classi

fication of this Act to the Code, see Short Title of 1992

Amendment note set out under section 3701 of this title

and Tables.

C ODIFICATION

Section was enacted as part of the American Tech

nology Preeminence Act of 1991, and not as part of the
Stevenson-Wydler Technology Innovation Act of 1980
which comprises this chapter.

T ERMINATION OF R EPORTING R EQUIREMENTS

For termination, effective May 15, 2000, of provisions
in subsec. (h) of this section relating to annually sub

mitting 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 re

spect to global trends in competitiveness and

innovation and allocation of Federal resources
in education, job training, and technology re

search and development considering such glob

al trends in competitiveness and innovation;Page 1788 TITLE 15—COMMERCE AND TRADE § 3718

(3) in consultation with the Director of the
Office of Management and Budget, developing
a process for using metrics to assess the im

pact 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 re

spect to improving conditions for innovation,
including through talent development, invest

ment, 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 Sec

retary 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 Commis

sion. (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 des

ignated 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 Na

tional 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 para

graph (1) shall include the following: (A) An assessment of current strengths

and weaknesses of the United States invest

ment in research and development. (B) Recommendations for addressing weak

nesses 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, engi

neering, and mathematics fields. (C) Recommendations for strengthening
the innovation and competitiveness capabili

ties of the Federal Government, State gov

ernments, 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 con

sultation with the National Academy of En

gineering, the Institute of Medicine, and the
National Research Council, shall develop

and submit to the President a list of 50 indi

viduals that are recommended to serve as
advisors to the Council during the develop

ment 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 Coun

cil.
(C) Requirement to consult

The Council shall develop the comprehen

sive agenda required by paragraph (1) in con

sultation 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 re

quired by paragraph (1).
(B) Updates

At least once every 2 years, the Council
shall update the comprehensive agenda re

quired 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 para

graphs (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.)

C ODIFICATION

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.

D ESIGNATION OF THE C OMMITTEE ON T ECHNOLOGY OF THE

N ATIONAL S CIENCE AND T ECHNOLOGY C OUNCIL T O

C ARRY O UT C ERTAIN R EQUIREMENTS OF THE A MERICA

COMPETES A CT

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 Tech

nology 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 memo

randum in the Federal Register.

G EORGE W. B USH

.

§ 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 mul

tiple agencies in cooperation, may carry out a
program to award prizes competitively to stimu

late innovation that has the potential to ad

vance 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 par

ticular, well-defined problem.
(2) An exposition prize that helps identify
and promote a broad range of ideas and prac

tices that may not otherwise attract atten

tion, facilitating further development of the
idea or practice by third parties.
(3) Participation prizes that create value
during and after the competition by encourag

ing contestants to change their behavior or
develop new skills that may have beneficial ef

fects 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 par

ticipation.

(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 se

lected.

(g) Eligibility

To be eligible to win a prize under this sec

tion, 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 require

ments 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 per

manent resident of the United States; and
(4) may not be a Federal entity or Federal
employee acting within the scope of their em

ployment.

(h) Consultation with Federal employees

An individual or entity shall not be deemed in

eligible under subsection (g) because the individ

ual 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 en

tity’’ means a contractor or subcontractor
at any tier, and a supplier, user, customer,
cooperating party, grantee, investigator, or

detailee.Page 1790 TITLE 15—COMMERCE AND TRADE § 3719

(B) Liability

Registered participants shall be required
to agree to assume any and all risks and
waive claims against the Federal Govern

ment 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 con

sequential, 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 li

ability insurance or demonstrate financial re

sponsibility, 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 Govern

ment against third party claims for damages
arising from or related to competition ac

tivities; 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 ad

ministering entity arising out of the unau

thorized use or disclosure by the agency of the
intellectual property, trade secrets, or con

fidential business information of the partici

pant.
(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 li

cense for the use of intellectual property de

veloped by a participant for a competition.
(k) Judges

(1) In general

For each competition, the head of an agen

cy, either directly or through an agreement
under subsection ( l ), shall appoint one or more
qualified judges to select the winner or win

ners of the prize competition on the basis de

scribed under subsection (f). Judges for each
competition may include individuals from out

side 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 relation

ship with an individual who is a registered
participant.

(3) Guidelines

The heads of agencies who carry out com

petitions 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 simi

lar 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 de

sign and administration of a prize or funds for
a monetary prize purse, may consist of Fed

eral 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 com

petitions. The head of an agency may not give
any special consideration to any private sec

tor 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 sub

section (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 announce

ment 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 an

nounced 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, andPage 1791 TITLE 15—COMMERCE AND TRADE § 3720

1 So in original. Probably should be ‘‘Services’’. Transportation of the Senate and the Com

mittee 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 pro

vide 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 tech

nical 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 objec

tives 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 sec

tion, be responsible for compliance by reg

istered 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 au

thority authorized by any other provision of

law.

(p) Annual report

(1) In general

Not later than March 1 of each year, the Di

rector shall submit to the Committee on Com

merce, 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 sub

section shall include, for each prize competi

tion 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 pref

erable method of achieving the goals de

scribed 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 de

scription of amount of private funds contrib

uted to the program, the sources of such
funds, and the manner in which the amounts
of cash prizes awarded and claimed were al

located among the accounts of the agency
for recording as obligations and expendi

tures.

(D) Solicitations and evaluation of submis

sions

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 les

sons 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 de

tailed 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 re

cording as obligations and expenditures.

(F) Results

A description of how each prize competi

tion advanced the mission of the agency con

cerned.

(Pub. L. 96–480, §24, as added Pub. L. 111–358,
title I, §105(a), Jan. 4, 2011, 124 Stat. 3989.)

R EFERENCES IN T EXT

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.

C HANGE OF N AME

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 Entrepreneur

ship

(a) In general

The Secretary shall establish an Office of In

novation and Entrepreneurship to foster innova

tion and the commercialization of new tech

nologies, products, processes, and services with
the goal of promoting productivity and eco

nomic growth in the United States.

(b) Duties

The Office of Innovation and Entrepreneurship
shall be responsible for—
(1) developing policies to accelerate innova

tion and advance the commercialization of re

search and development, including federally
funded research and development;
(2) identifying existing barriers to innova

tion and commercialization, including access
to capital and other resources, and ways to
overcome those barriers, particularly in
States participating in the Experimental Pro

gram to Stimulate Competitive Research;
(3) providing access to relevant data, re

search, and technical assistance on innovation
and commercialization;Page 1792 TITLE 15—COMMERCE AND TRADE § 3721

(4) strengthening collaboration on and co

ordination of policies relating to innovation
and commercialization, including those fo

cused on the needs of small businesses and
rural communities, within the Department of
Commerce, between the Department of Com

merce and other Federal agencies, and be

tween the Department of Commerce and ap

propriate State government agencies and in

stitutions, 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 pro

gram 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 in

novative 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 re

search funded in whole or in part by a grant
from the Federal government.

(c) Eligible borrower

A loan guarantee may be made under the pro

gram only for a borrower who is a small- or me

dium-sized manufacturer, as determined by the
Secretary under the criteria established pursu

ant to subsection ( l ).

(d) Limitation on amount

A loan guarantee shall not exceed an amount
equal to 80 percent of the obligation, as esti

mated 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 repay

ment of the principal and interest on the obli

gation by the borrower;
(2) the amount of the obligation (when com

bined 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 re

payment 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 phys

ical asset to be financed by the obligation.

(f) Defaults

(1) Payment by Secretary

(A) In general

If a borrower defaults (as defined in regu

lations promulgated by the Secretary and
specified in the loan guarantee) on the obli

gation, 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 rem

edied.

(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 sub

rogated to the rights, as specified in the loan
guarantee, of the recipient of the payment
or related agreements including, if appro

priate, the authority (notwithstanding any
other provision of law)— (i) to complete, maintain, operate, lease,
or otherwise dispose of any property ac

quired pursuant to such loan guarantee or
related agreement; or (ii) to permit the borrower, pursuant to
an agreement with the Secretary, to con

tinue 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 Gen

eral of the default.
(g) Terms and conditions

A loan guarantee under this section shall in

clude 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 oper

ate 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 Treas

ury.

(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, sub

ject to such other conditions as are con

tained in annual appropriations Acts.

(3) Limitation

In charging and collecting fees under para

graph (1), the Secretary shall take into consid

eration 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, in

cluding such records as the Secretary may re

quire 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 prin

cipal and interest.

( l ) Regulations

The Secretary shall issue final regulations be

fore making any loan guarantees under the pro

gram. 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 me

dium-sized manufacturer; and
(B) whether a borrower demonstrates that

a market exists for the innovative tech

nology 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 infor

mation necessary to implement this section.

(m) Audit

(1) Annual independent audits

The Secretary shall enter into an arrange

ment 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 contain

ing a summary of all activities carried out

under this section.

( o ) Coordination and nonduplication

To the maximum extent practicable, the Sec

retary shall ensure that the activities carried
out under this section are coordinated with, and
do not duplicate the efforts of, other loan guar

antee programs within the Federal Government.

(p) MEP centers

The Secretary may use centers established
under section 278k of this title to provide infor

mation about the program established under
this section and to conduct outreach to poten

tial borrowers, as appropriate.

(q) Minimizing risk

The Secretary shall promulgate regulations
and policies to carry out this section in accord

ance with Office of Management and Budget Cir

cular 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 guar

antee 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.Page 1794 TITLE 15—COMMERCE AND TRADE § 3722

(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 com

pared to the process in general use in the com

mercial 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 is

sued.

(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 guaran

tee 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.)

C HANGE OF N AME

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 inno

vation 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 re

cipients for activities relating to the forma

tion 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 commu

nication 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 re

gional innovation cluster, including through
demonstration, deployment, technology
transfer, and commercialization activities.
(G) Developing relationships between a re

gional 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 recipi

ent’’ 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 insti

tution of higher education, a public-pri

vate partnership, a science or research
park, a Federal laboratory, or an economic
development organization or similar en

tity; 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 de

scribed in subparagraphs (A) through (D).

(4) Application

(A) In general

An eligible recipient shall submit an appli

cation to the Secretary at such time, in such
manner, and containing such information
and assurances as the Secretary may re

quire.

(B) Components

The application shall include, at a mini

mum, a description of the regional innova

tion cluster supported by the proposed activ

ity, including a description of—
(i) whether the regional innovation clus

ter 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 en

tities that might benefit from participa

tion, including newly formed entities and
those rival existing participants;
(iii) the extent to which the regional in

novation cluster is likely to stimulate in

novation and have a positive impact on re

gional economic growth and development;
(iv) whether the participants in the re

gional 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 re

gional innovation cluster are capable of
attracting additional funds from non-Fed

eral 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 consider

ation to applications from regions that con

tain communities negatively impacted by

trade.

(5) Special consideration

The Secretary shall give special consider

ation 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 fund

ed under this subsection.

(7) Use and application of research and infor

mation program

To the maximum extent practicable, the
Secretary shall ensure that activities funded
under this subsection use and apply any rel

evant research, best practices, and metrics de

veloped under the program established in sub

section (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 stud

ies 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 pre

dominant rural or urban character as indi

cated by population density.

(C) Selection criteria

The Secretary shall publish the criteria to
be utilized in any competition for the selec

tion of recipients of grants under this sub

section, which shall include requirements re

lating to the—
(i) effect the science park will have on
regional economic growth and develop

ment; (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 dur

ing its first 3 years;
(iv) amount and type of financing and
access to capital available to the appli

cant; (v) types of businesses and research enti

ties expected in the science park and sur

rounding 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 con

struction 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 build

ing technology including nationally recog

nized green building design practices, re

newable energy, cogeneration, and other
methods that increase energy efficiency
and conservation;
(xii) consideration to the transformation
of military bases affected by the base re

alignment and closure process or the rede

velopment of existing buildings, struc

tures, or brownfield sites that are aban

doned, 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 devel

opment 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 with

out written notification to the Senate Com

mittee on Commerce, Science, and Transpor

tation and the House of Representatives Com

mittees on Science and Technology and on En

ergy and Commerce.
(d) Loan guarantees for science park infrastruc

ture
(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 ex

ceed—
(A) $50,000,000 with respect to any single
project; andPage 1796 TITLE 15—COMMERCE AND TRADE § 3722

(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 Sec

retary 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 deter

mines it to be feasible, the Secretary may se

lect recipients of guarantee assistance in ac

cord 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 sub

section 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 deter

mines that the lender is responsible and that
provision is made for servicing the loan on

reasonable terms and in a manner that ade

quately 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 obli

gations the income from which is so ex

cluded;

(E) any guarantee provided under this sub

section shall be conclusive evidence that—
(i) the guarantee has been properly ob

tained;
(ii) the underlying loan qualified for the
guarantee; and
(iii) absent fraud or material misrepre

sentation by the holder, the guarantee is
presumed to be valid, legal, and enforce

able;

(F) the Secretary may not extend credit
assistance unless the Secretary has deter

mined that there is a reasonable assurance
of repayment; and
(G) new loan guarantees may not be com

mitted except to the extent that appropria

tions 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 sub

section, after the holder has made such fur

ther 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 Sec

retary shall be subrogated to all the rights
of the recipient of the payment. The Sec

retary 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 ac

tion as may be appropriate to enforce any
right accruing to the United States as a re

sult 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 author

ity for any resulting subsidy costs (as de

fined 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 esti

mates for the loan guarantees under this
section; and
(ii) submit to Congress a report on the re

view 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 avail

able until expended.

(e) Regional innovation research and informa

tion 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 in

formation on best practices for regional in

novation strategies (including regional inno

vation clusters), including information re

lating to how innovation, productivity, andPage 1797 TITLE 15—COMMERCE AND TRADE § 3722

1 So in original. Probably should not be capitalized. economic development can be maximized
through such strategies;
(B) to provide technical assistance, includ

ing through the development of technical as

sistance guides, for the development and im

plementation of regional innovation strate

gies (including regional innovation clusters);
(C) to support the development of relevant

metrics and measurement standards to
evaluate regional innovation strategies (in

cluding regional innovation clusters), in

cluding the extent to which such strategies
stimulate innovation, productivity, and eco

nomic 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 competi

tiveness of regional innovation clusters;
(ii) the regional domestic product con

tribution, total jobs and earnings by key
occupations, establishment size, nature of
specialization, patents, Federal research
and development spending, and other rel

evant information for regional innovation
clusters; and
(iii) supply chain product and service
flows within and between regional innova

tion 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 sub

section shall be made available to other Fed

eral 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 sub

section (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 car

ried 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 op

portunities, on regional innovation strate

gies.

(B) Small businesses

The Secretary shall ensure that such col

laboration 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 evalua

tion of the program established under sub

section (a).
(2) Requirements

The evaluation shall include— (A) whether the program is achieving its
goals; (B) any recommendations for how the pro

gram 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 enti

ties that— (A) are engaged in or with a particular in

dustry 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 competi

tive strengths to stimulate innovation and
create jobs.
(2) Science park

The term ‘‘Science 1 park’’ means a prop

erty-based venture, which has— (A) master-planned property and buildings
designed primarily for private-public re

search and development activities, high
technology and science-based companies,
and research and development support serv

ices; (B) a contractual or operational relation

ship with one or more science- or researchrelated institution of higher education or
governmental or non-profit research labora

tories; (C) a primary mission to promote research
and development through industry partner

ships, assisting in the growth of new ven

tures and promoting innovation-driven eco

nomic development; (D) a role in facilitating the transfer of
technology and business skills between re

searchers and industry teams; and (E) a role in promoting technology-led eco

nomic development for the community or re

gion in which the science park is located. A
science park may be owned by a govern

mental 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

-Page 1798 TITLE 15—COMMERCE AND TRADE § 3801

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.)

C HANGE OF N AME

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 DEM

ONSTRATION

Sec.

3801. Congressional statement of findings and dec

laration 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 pri

mary component of natural gas and can be de

rived in increased quantities from coal, bio

mass, 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 vehi

cles and is therefore particularly suitable as
fuel for fleet vehicles; and
(7) the introduction into commerce of meth

ane-fueled vehicles would be expedited and fa

cilitated by the establishment of a Federal
program of research, development, and dem

onstration 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 ac

celerated research into, and development of,
methane vehicle design, and related tech

nologies;
(2) demonstrate the economic and techno

logical practicalities of methane-fueled vehi

cles 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 prac

ticable;
(4) promote the substitution of methanefueled vehicles for gasoline- and diesel-pow

ered 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 du

plicate, the automotive propulsion system re

search and development efforts of private in

dustry.

(Pub. L. 96–512, §2, Dec. 12, 1980, 94 Stat. 2827.)

R EFERENCES IN T EXT

The Clean Air Act, as amended, referred to in subsec.
(b)(4), is act July 14, 1955, ch. 360, 69 Stat. 322, as amend

ed, 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.

S HORT T ITLE

Section 1 of Pub. L. 96–512 provided: ‘‘That this Act
[enacting this chapter] may be cited as the ‘Methane
Transportation Research, Development, and Dem

onstration Act of 1980’.’’

§ 3802. Definitions

For purposes of this chapter—
(a) the term ‘‘methane’’ means either natu

ral gas (as defined in section 3301(1) of this
title), gas derived from coal, liquefied natural
gas, or any gaseous transportation fuel pro

duced from biomass, waste products, and other
renewable resources;
(b) the term ‘‘Secretary’’ means the Sec

retary of Energy;
(c) the term ‘‘public entities’’ means any
unit or units of State and/or local govern

ments; (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 agricul

tural 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 trans

mission, storage and dispensing facilities’’,
and any variant thereof means such facilities
which are (1) directly necessary for the con

duct of a demonstration, (2) for the exclusive