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[House Report 115-788]
[From the U.S. Government Publishing Office]

115th Congress    }                                {          Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                {          115-788

======================================================================

 
    NATIONAL INNOVATION MODERNIZATION BY LABORATORY EMPOWERMENT ACT

                                _______
                                

 June 27, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

     Mr. Smith of Texas, from the Committee on Science, Space, and 
                  Technology, submitted the following

                              R E P O R T

                        [To accompany H.R. 5907]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, Space, and Technology, to whom 
was referred the bill (H.R. 5907) to provide directors of the 
National Laboratories signature authority for certain 
agreements, and for other purposes, having considered the same, 
report favorably thereon without amendment and recommend that 
the bill do pass.

                                CONTENTS

                                                                   PAGE
Committee Statement and Views....................................     1
Section-by-Section...............................................     4
Explanation of Amendments........................................     4
Committee Consideration..........................................     4
Application of Law to the Legislative Branch.....................     4
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     5
Statement of General Performance Goals and Objectives............     5
Duplication of Federal Programs..................................     5
Disclosure of Directed Rule Makings..............................     5
Federal Advisory Committee Act...................................     5
Unfunded Mandate Statement.......................................     5
Earmark Identification...........................................     5
Committee Estimate...............................................     6
Budget Authority and Congressional Budget Office Cost Estimate...     6
Changes in Existing Law Made by the Bill as Reported.............     7

                     Committee Statement and Views

                          PURPOSE AND SUMMARY

    The purpose of H.R. 5907, the ``the National Innovation 
Modernization by Laboratory Empowerment (NIMBLE) Act,'' is to 
make targeted reforms to the relationship between the 
Department of Energy and its national laboratories. Laboratory 
directors will receive increased authority to enter into 
certain cooperative agreements with the private sector.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Department of Energy owns seventeen national 
laboratories, sixteen of which are federally funded research 
and development centers. DOE is leading Federal sponsor of 
research in the physical sciences, and conducts the majority of 
its basic research utilizing the world-class, open-access user 
facilities around the country at the DOE national laboratories.
    These facilities include the supercomputers, x-ray light 
sources, photon sources, and neutron sources necessary to 
conduct ground-breaking basic research, and host approximately 
30,000 researchers annually from around the world. The national 
labs also provide a unique opportunity for collaboration with 
the private sector through cooperative research agreements. 
This partnership supports the Department's mission and maintain 
American leadership in technology development, but ensures the 
labs focus on the basic and early-stage research that provides 
the foundation for the private sector to advance new 
technologies.
    However, burdensome oversight or reporting requirements can 
limit the ability of the national labs to quickly partner with 
private sector entities to support technology transfer and 
innovation. A bipartisan report issued by the Information 
Technology and Innovation Foundation, the Center for American 
Progress, and the Heritage Foundation in June 2013 entitled 
``Turning the Page: Reimagining the National Labs in the 21st 
Century Innovation Economy,'' recommended shifting 
responsibility of the management of day to day transactions of 
the lab to the lab directors, with Department oversight 
provided through the performance plan identified in the 
Management and Operating (M&O) contract.
    The Commission to Review the Effectiveness of the National 
Energy Laboratories (CRENEL) echoed this approach in their 
final report issued in October 2015, ``Securing America's 
Future: Realizing the Potential of the Department of Energy's 
National Laboratories.'' Members of the Commission recommended 
that within the framework of a high-level annual operating 
plan, like the Office of Science labs Performance and 
Evaluation and Measurement Plan (PEMP), ``DOE should provide 
increased flexibility and authority to the laboratory to 
implement that plan.''
    This legislation establishes a clear mechanism for carrying 
out this recommendation, by directing the Department to provide 
``signature authority'' to national lab directors to approve 
entering into agreements with the private sector that are 
valued under $1,000,000.

                          LEGISLATIVE HISTORY

    On February 25, 2015, the Full Committee held a hearing 
entitled, ``An Overview of the Budget Proposal for the 
Department of Energy for Fiscal Year 2016.'' The purpose of 
this hearing was to examine the Department of Energy's science 
and technology priorities and their impact on the allocation of 
funding within the Department's research, development, 
demonstration, and commercialization activities. The witness 
was The Honorable Ernest Moniz, Secretary, U.S. Department of 
Energy.
    On November 18, 2015, the Energy Subcommittee held a 
hearing titled, ``Recommendations of the Commission to Review 
the Effectiveness of the National Energy Laboratories.'' 
Witnesses were: Mr. TJ Glauthier, Co-Chair, Commission to 
Review the Effectiveness of the National Energy Laboratories; 
Dr. Jared L. Cohon, Co-Chair, Commission to Review the 
Effectiveness of the National Energy Laboratories; Dr. Peter 
Littlewood, Director, Argonne National Laboratory.
    On March 22, 2016, the Committee held a hearing titled, 
``An Overview of the Budget Proposal for the Department of 
Energy for Fiscal Year 2017.'' The witness was The Honorable 
Ernest Moniz, Secretary of Energy, U.S. Department of Energy.
    On January 24, 2017, H.R. 589, the Department of Energy 
Research and Innovation Act, which includes management reform 
to improve the efficiency of the DOE national laboratories, 
passed the House without amendment.
    On July 19, 2017, the Committee held a hearing titled, 
``Energy Innovation: Letting Technology Lead.'' Witnesses were: 
Dr. Jacob DeWitte, President and CEO, Oklo; Dr. Gaurav N. Sant, 
Associate Professor and Henry Samueli Fellow, Department of 
Civil and Environmental Engineering, Henry Samueli School of 
Engineering and Applied Science, University of California, Los 
Angeles; Dr. Venky Narayanamurti, Benjamin Peirce Research 
Professor of Technology and Public Policy, John A. Paulson 
School of Engineering and Applied Science, Harvard University; 
Mr. Kiran Kumaraswamy, Market Development Director, AES Energy 
Storage.
    On January 30, 2018, the Committee held a hearing titled, 
``Department of Energy: Management and Priorities.'' Witnesses 
were the Honorable Paul Dabbar, Under Secretary for Science, 
U.S. Department of Energy, and the Honorable Mark Menezes, 
Under Secretary of Energy, U.S. Department of Energy.
    On March 13, 2018, the Committee held a hearing titled, 
``National Laboratories: World-Leading Innovation in Science.'' 
Witnesses were Dr. Mark Peters, the Director of Idaho National 
Laboratory, Dr. Susan Seestrom, the Advanced Science and 
Technology Associate Laboratory Director and Chief Research 
Officer at Sandia National Laboratory, Dr. Mary E. Maxon, the 
Associate Laboratory Director for Biosciences at Lawrence 
Berkeley National Laboratory, Dr. Chi-Chang Kao, the Director 
of Stanford Linear Accelerator Center, National Accelerator 
Laboratory, and Dr. Paul Kearns, the Director of Argonne 
National Laboratory.
    On May 9, 2018, the Committee held a hearing titled, ``An 
Overview of the Budget Proposal for the Department of Energy 
for Fiscal Year 2019.'' The witness was The Honorable Rick 
Perry, Secretary, U.S. Department of Energy.
    On May 22, 2018, Rep. Randy Hultgren introduced H.R. 5907, 
which was referred solely to the Committee.
    On May 23, 2018, the Committee approved and ordered 
reported H.R. 5907 by voice vote.

                            COMMITTEE VIEWS

    The Committee is concerned that institutional 
inefficiencies between the Department of Energy and its 
laboratories, including burdensome transactional oversight by 
the Department, harm laboratories' productivity with respect to 
cooperative research and development with the private sector 
and technology transfer.
    The Committee finds that the laboratories provide unique 
capabilities for the progress of science and technology, but 
have been prevented from achieving their potential due to 
bureaucratic restrictions inconsistent with the intent of the 
government-owned, contractor-operated model. The Committee 
concurs with the recommendation of the CRENEL report to reduce 
DOE management of day to day activities of the national labs in 
order to increase cooperation with the private sector, and 
supports the Department's ongoing effort to increase the 
effectiveness of the national laboratories.
    However, the Committee finds that legislation is necessary 
to ensure the implementation of a clear mechanism to empower 
national lab directors, while also maintaining the appropriate 
management structure for a government owned, contractor 
operated facility.

                           Section-by-Section

Sec. 1. Short title

    National Innovation Modernization by Laboratory Empowerment 
(NIMBLE) Act.

Sec. 2. Definitions

    Section 2 provides relevant definitions.

Sec. 3. Public-private partnerships for commercialization

    Section 3 authorizes the Secretary to delegate to the 
directors of the National Laboratories signature authority to 
certain agreements in which the total cost is less than 
$1,000,000, while also ensuring that it does not compromise any 
national security, economic, or environmental interest of the 
United States.

Sec. 4. Savings clause

    Section 4 states that nothing in this Act or any amendment 
abrogates or otherwise affects the primary responsibilities of 
any National Laboratory to the Department of Energy.

                       Explanation of Amendments

    There were no amendments to this bill.

                        Committee Consideration

    On May 23, 2018, the Committee met in open session and 
ordered reported favorably the bill, H.R. 5907, by voice vote, 
a quorum being present.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill provides for technological innovation through the 
prioritization of Federal investment in basic research and 
fundamental scientific discovery through the upgrade of key 
user facilities at DOE. As such, this bill does not relate to 
employment or access to public services and accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    H.R. 5907 provides authority for laboratory directors to 
enter into certain cooperative agreements with the private 
sector.

                    Duplication of Federal Programs

    No provision of H.R. 5907 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting H.R. 5907 does not 
direct the completion of any specific rule makings within the 
meaning of 5 U.S.C. 551.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    H.R. 5907 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of Rule XXI.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 5907. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 5907 from the Director of 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 22, 2018.
Hon. Lamar Smith,
Chairman, Committee on Science, Space, and Technology,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5907, the NIMBLE 
Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Janani 
Shankaran.
            Sincerely,
                                                Keith Hall,
                                                          Director.

Enclosure.

    H.R. 5907--NIMBLE Act
    H.R. 5907 would authorize the directors of the Department 
of Energy's (DOE's) national laboratories to enter into certain 
agreements with third parties without prior approval if the 
agreements are valued at less than $1 million.
    Under current law, the agreements that would be affected by 
the bill require the directors of the national laboratories to 
obtain insurance for any contract that creates a partnership 
with a third party. In certain situations, the federal 
government may reimburse directors for the cost of liabilities 
that are not covered by insurance. CBO expects that 
implementing the bill would increase the number of such 
agreements between the national laboratories and third parties, 
thereby increasing DOE's potential reimbursement payments to 
lab directors.
    In the past, those reimbursements have been made with funds 
from the Department of Energy's existing appropriations. Based 
on information about the size and probability of such payments 
in the past, CBO estimates that implementing H.R. 5907 would 
cost less than $500,000 over the 2019-2023 period and would be 
subject to the availability of appropriated funds.
    Enacting H.R. 5907 could affect direct spending; therefore, 
pay-as-you-go procedures apply. Under current law, the national 
laboratories are prohibited from charging third parties fees in 
excess of cost recovery when entering into covered agreements. 
The bill would permit them to charge rates higher than for cost 
recovery and to spend any additional collections (collections 
are recorded in the budget as reductions in direct spending) 
for research and development activities at the laboratories 
without further appropriation. CBO expects that any additional 
collections resulting from those higher rates would be offset 
by an expenditure soon thereafter. Thus, CBO estimates that the 
net effect on direct spending would be negligible. Enacting the 
bill would not affect revenues.
    CBO estimates that enacting H.R. 5907 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 5907 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Janani 
Shankaran. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

           STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980

           *       *       *       *       *       *       *
SEC. 12. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.

  (a) General Authority.--[Each Federal agency]
          (1) In general._Except as provided in paragraph (2), 
        each Federal agency  may permit the director of any of 
        its Government-operated Federal laboratories, and, to 
        the extent provided in an agency-approved joint work 
        statement or, if permitted by the agency, in an agency-
        approved annual strategic plan, contractor-operated 
        laboratories--
                  [(1)] (A) to enter into cooperative research 
                and development agreements on behalf of such 
                agency (subject to subsection (c) of this 
                section) with other Federal agencies; units of 
                State or local government; industrial 
                organizations (including corporations, 
                partnerships, and limited partnerships, and 
                industrial development organizations); public 
                and private foundations; nonprofit 
                organizations (including universities); or 
                other persons (including licensees of 
                inventions owned by the Federal agency); and
                  [(2)] (B) to negotiate licensing agreements 
                under section 207 of title 35, United States 
                Code, or under other authorities (in the case 
                of a Government-owned, contractor-operated 
                laboratory, subject to subsection (c) of this 
                section) for inventions made or other 
                intellectual property developed at the 
                laboratory and other inventions or other 
                intellectual property that may be voluntarily 
                assigned to the Government.
          (2) Exception.--Notwithstanding paragraph (1), in 
        accordance with section 3(a) of the NIMBLE Act, 
        approval by the Secretary of Energy shall not be 
        required for any technology transfer agreement proposed 
        to be entered into by a National Laboratory of the 
        Department of Energy, the total cost of which 
        (including the National Laboratory contributions and 
        project recipient cost share) is less than $1,000,000.
  (b) Enumerated Authority.--(1) Under an agreement entered 
into pursuant to [subsection (a)(1)] subsection (a)(1)(A), the 
laboratory may grant, or agree to grant in advance, to a 
collaborating party patent licenses or assignments, or options 
thereto, in any invention made in whole or in part by a 
laboratory employee under the agreement, or, subject to section 
209 of title 35, United States Code, may grant a license to an 
invention which is federally owned, for which a patent 
application was filed before the signing of the agreement, and 
directly within the scope of the work under the agreement, for 
reasonable compensation when appropriate. The laboratory shall 
ensure, through such agreement, that the collaborating party 
has the option to choose an exclusive license for a pre-
negotiated field of use for any such invention under the 
agreement or, if there is more than one collaborating party, 
that the collaborating parties are offered the option to hold 
licensing rights that collectively encompass the rights that 
would be held under such an exclusive license by one party. In 
consideration for the Government's contribution under the 
agreement, grants under this paragraph shall be subject to the 
following explicit conditions:
          (A) A nonexclusive, nontransferable, irrevocable, 
        paid-up license from the collaborating party to the 
        laboratory to practice the invention or have the 
        invention practiced throughout the world by or on 
        behalf of the Government. In the exercise of such 
        license, the Government shall not publicly disclose 
        trade secrets or commercial or financial information 
        that is privileged or confidential within the meaning 
        of section 552(b)(4) of title 5, United States Code, or 
        which would be considered as such if it had been 
        obtained from a non-Federal party.
          (B) If a laboratory assigns title or grants an 
        exclusive license to such an invention, the Government 
        shall retain the right--
                  (i) to require the collaborating party to 
                grant to a responsible applicant a 
                nonexclusive, partially exclusive, or exclusive 
                license to use the invention in the applicant's 
                licensed field of use, on terms that are 
                reasonable under the circumstances; or
                  (ii) if the collaborating party fails to 
                grant such a license, to grant the license 
                itself.
          (C) The Government may exercise its right retained 
        under subparagraph (B) only in exceptional 
        circumstances and only if the Government determines 
        that--
                  (i) the action is necessary to meet health or 
                safety needs that are not reasonably satisfied 
                by the collaborating party;
                  (ii) the action is necessary to meet 
                requirements for public use specified by 
                Federal regulations, and such requirements are 
                not reasonably satisfied by the collaborating 
                party; or
                  (iii) the collaborating party has failed to 
                comply with an agreement containing provisions 
                described in subsection (c)(4)(B).
        This determination is subject to administrative appeal 
        and judicial review under section 203(2) of title 35, 
        United States Code.
  (2) Under agreements entered into pursuant to [subsection 
(a)(1)] subsection (a)(1)(A), the laboratory shall ensure that 
a collaborating party may retain title to any invention made 
solely by its employee in exchange for normally granting the 
Government a nonexclusive, nontransferable, irrevocable, paid-
up license to practice the invention or have the invention 
practiced throughout the world by or on behalf of the 
Government for research or other Government purposes.
  (3) Under an agreement entered into pursuant to [subsection 
(a)(1)] subsection (a)(1)(A), a laboratory may--
          (A) accept, retain, and use funds, personnel, 
        services, and property from a collaborating party and 
        provide personnel, services, and property to a 
        collaborating party;
          (B) use funds received from a collaborating party in 
        accordance with subparagraph (A) to hire personnel to 
        carry out the agreement who will not be subject to 
        full-time-equivalent restrictions of the agency;
          (C) to the extent consistent with any applicable 
        agency requirements or standards of conduct, permit an 
        employee or former employee of the laboratory to 
        participate in an effort to commercialize an invention 
        made by the employee or former employee while in the 
        employment or service of the Government; and
          (D) waive, subject to reservation by the Government 
        of a nonexclusive, irrevocable, paid-up license to 
        practice the invention or have the invention practiced 
        throughout the world by or on behalf of the Government, 
        in advance, in whole or in part, any right of ownership 
        which the Federal Government may have to any subject 
        invention made under the agreement by a collaborating 
        party or employee of a collaborating party.
  (4) A collaborating party in an exclusive license in any 
invention made under an agreement entered into pursuant to 
[subsection (a)(1)] subsection (a)(1)(A) shall have the right 
of enforcement under chapter 29 of title 35, United States 
Code.
  (5) A Government-owned, contractor-operated laboratory that 
enters into a cooperative research and development agreement 
pursuant to [subsection (a)(1)] subsection (a)(1)(A) may use or 
obligate royalties or other income accruing to the laboratory 
under such agreement with respect to any invention only--
          (A) for payments to inventors;
          (B) for purposes described in clauses (i), (ii), 
        (iii), and (iv) of section 14(a)(1)(B); and
          (C) for scientific research and development 
        consistent with the research and development missions 
        and objectives of the laboratory.
  (6)(A) In the case of a laboratory that is part of the 
National Nuclear Security Administration, a designated official 
of that Administration may waive any license retained by the 
Government under paragraph (1)(A), (2), or (3)(D), in whole or 
in part and according to negotiated terms and conditions, if 
the designated official finds that the retention of the license 
by the Government would substantially inhibit the 
commercialization of an invention that would otherwise serve an 
important national security mission.
  (B) The authority to grant a waiver under subparagraph (A) 
shall expire on the date that is five years after the date of 
the enactment of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001. The expiration under 
the preceding sentence of authority to grant a waiver under 
subparagraph (A) shall not affect any waiver granted under that 
subparagraph before the expiration of such authority.
  (C) Not later than February 15 of each year, the 
Administrator for Nuclear Security shall submit to Congress a 
report on any waivers granted under this paragraph during the 
preceding year.
  (c) Contract Considerations.--(1) A Federal agency may issue 
regulations on suitable procedures for implementing the 
provisions of this section; however, implementation of this 
section shall not be delayed until issuance of such 
regulations.
  (2) The agency in permitting a Federal laboratory to enter 
into agreements under this section shall be guided by the 
purposes of this Act.
  (3)(A) Any agency using the authority given it under 
subsection (a) shall review standards of conduct for its 
employees for resolving potential conflicts of interest to make 
sure they adequately establish guidelines for situations likely 
to arise through the use of this authority, including but not 
limited to cases where present or former employees or their 
partners negotiate licenses or assignments of titles to 
inventions or negotiate cooperative research and development 
agreements with federal agencies (including the agency with 
which the employee involved is or was formerly employed).
  (B) If, in implementing subparagraph (A), an agency is unable 
to resolve potential conflicts of interest within its current 
statutory framework, it shall propose necessary statutory 
changes to be forwarded to its authorizing committees in 
Congress.
  (4) The laboratory director in deciding what cooperative 
research and development agreements to enter into shall--
          (A) give special consideration to small business 
        firms, and consortia involving small business firms; 
        and
          (B) give preference to business units located in the 
        United States which agree that products embodying 
        inventions made under the cooperative research and 
        development agreement or produced through the use of 
        such inventions will be manufactured substantially in 
        the United States and, in the case of any industrial 
        organization or other person subject to the control of 
        a foreign company or government, as appropriate, take 
        into consideration whether or not such foreign 
        government permits United States agencies, 
        organizations, or other persons to enter into 
        cooperative research and development agreements and 
        licensing agreements.
  (5)(A) If the head of the agency or his designee desires an 
opportunity to disapprove or require the modification of any 
such agreement presented by the director of a Government-
operated laboratory, the agreement shall provide a 30-day 
period within which such action must be taken beginning on the 
date the agreement is presented to him or her by the head of 
the laboratory concerned.
  (B) In any case in which the head of an agency or his 
designee disapproves or requires the modification of an 
agreement presented by the director of a Government-operated 
laboratory under this section, the head of the agency or such 
designee shall transmit a written explanation of such 
disapproval or modification to the head of the laboratory 
concerned.
  (C)(i) Any non-Federal entity that operates a laboratory 
pursuant to a contract with a Federal agency shall submit to 
the agency any cooperative research and development agreement 
that the entity proposes to enter into and the joint work 
statement if required with respect to that agreement.
  (ii) A Federal agency that receives a proposed agreement and 
joint work statement under clause (i) shall review and approve, 
request specific modifications to, or disapprove the proposed 
agreement and joint work statement within 30 days after such 
submission. No agreement may be entered into by a Government-
owned, contractor-operated laboratory under this section before 
both approval of the agreement and approval of a joint work 
statement under this clause.
  (iii) In any case in which an agency which has contracted 
with an entity referred to in clause (i) disapproves or 
requests the modification of a cooperative research and 
development agreement or joint work statement submitted under 
that clause, the agency shall transmit a written explanation of 
such disapproval or modification to the head of the laboratory 
concerned.
  (iv) Any agency that has contracted with a non-Federal entity 
to operate a laboratory may develop and provide to such 
laboratory one or more model cooperative research and 
development agreements for purposes of standardizing practices 
and procedures, resolving common legal issues, and enabling 
review of cooperative research and development agreements to be 
carried out in a routine and prompt manner.
  (v) A Federal agency may waive the requirements of clause (i) 
or (ii) under such circumstances as the agency considers 
appropriate.
  (6) Each agency shall maintain a record of all agreements 
entered into under this section.
  (7)(A) No trade secrets or commercial or financial 
information that is privileged or confidential, under the 
meaning of section 552(b)(4) of title 5, United States Code, 
which is obtained in the conduct of research or as a result of 
activities under this Act from a non-Federal party 
participating in a cooperative research and development 
agreement shall be disclosed.
  (B) The director, or in the case of a contractor-operated 
laboratory, the agency, for a period of up to 5 years after 
development of information that results from research and 
development activities conducted under this Act and that would 
be a trade secret or commercial or financial information that 
is privileged or confidential if the information had been 
obtained from a non-Federal party participating in a 
cooperative research and development agreement, may provide 
appropriate protections against the dissemination of such 
information, including exemption from subchapter II of chapter 
5 of title 5, United States Code.
  (d) Definition.--As used in this section--
          (1) the term ``cooperative research and development 
        agreement'' means any agreement between one or more 
        Federal laboratories and one or more non-Federal 
        parties under which the Government, through its 
        laboratories, provides personnel, services, facilities, 
        equipment, intellectual property, or other resources 
        with or without reimbursement (but not funds to non-
        Federal parties) and the non-Federal parties provide 
        funds, personnel, services, facilities, equipment, 
        intellectual property, or other resources toward the 
        conduct of specified research or development efforts 
        which are consistent with the missions of the 
        laboratory; except that such term does not include a 
        procurement contract or cooperative agreement as those 
        terms are used in sections 6303, 6304, and 6305 of 
        title 31, United States Code;
          (2) the term ``laboratory'' means--
                  (A) a facility or group of facilities owned, 
                leased, or otherwise used by a Federal agency, 
                a substantial purpose of which is the 
                performance of research, development, or 
                engineering by employees of the Federal 
                Government;
                  (B) a group of Government-owned, contractor-
                operated facilities (including a weapon 
                production facility of the Department of 
                Energy) under a common contract, when a 
                substantial purpose of the contract is the 
                performance of research and development, or the 
                production, maintenance, testing, or 
                dismantlement of a nuclear weapon or its 
                components, for the Federal Government; and
                  (C) a Government-owned, contractor-operated 
                facility (including a weapon production 
                facility of the Department of Energy) that is 
                not under a common contract described in 
                subparagraph (B), and the primary purpose of 
                which is the performance of research and 
                development, or the production, maintenance, 
                testing, or dismantlement of a nuclear weapon 
                or its components, for the Federal Government,
        but such term does not include any facility covered by 
        Executive Order No. 12344, dated February 1, 1982, 
        pertaining to the naval nuclear propulsion program;
          (3) the term ``joint work statement'' means a 
        proposal prepared for a Federal agency by the director 
        of a Government-owned, contractor-operated laboratory 
        describing the purpose and scope of a proposed 
        cooperative research and development agreement, and 
        assigning rights and responsibilities among the agency, 
        the laboratory, and any other party or parties to the 
        proposed agreement; and
          (4) the term ``weapon production facility of the 
        Department of Energy'' means a facility under the 
        control or jurisdiction of the Secretary of Energy that 
        is operated for national security purposes and is 
        engaged in the production, maintenance, testing, or 
        dismantlement of a nuclear weapon or its components.
  (e) Determination of Laboratory Missions.--For purposes of 
this section, an agency shall make separate determinations of 
the mission or missions of each of its laboratories.
  (f) Relationship to Other Laws.--Nothing in this section is 
intended to limit or diminish existing authorities of any 
agency.
  (g) Principles.--In implementing this section, each agency 
which has contracted with a non-Federal entity to operate a 
laboratory shall be guided by the following principles:
          (1) The implementation shall advance program missions 
        at the laboratory, including any national security 
        mission.
          (2) Classified information and unclassified sensitive 
        information protected by law, regulation, or Executive 
        order shall be appropriately safeguarded.

           *       *       *       *       *       *       *

                                  [all]
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