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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4720 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4720

   To establish the American Innovation Bank, to improve science and 
      technology job training, to authorize grants for curriculum 
                  development, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 2012

   Mr. Holt introduced the following bill; which was referred to the 
              Committee on Science, Space, and Technology

_______________________________________________________________________

                                 A BILL

 
   To establish the American Innovation Bank, to improve science and 
      technology job training, to authorize grants for curriculum 
                  development, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``America Innovates Act of 2012''.

                   TITLE I--AMERICAN INNOVATION BANK

SEC. 101. ESTABLISHMENT OF THE AMERICAN INNOVATION BANK.

    (a) Establishment.--There is established in the Executive Branch of 
the Government an independent agency to be known as the American 
Innovation Bank (referred to in this title as the ``Bank'').
    (b) Board and Director.--
            (1) In general.--The Bank shall consist of an American 
        Innovation Board (referred to in this title as the ``Board'') 
        and a Director of the American Innovation Bank (referred to in 
        this title as the ``Director'').
            (2) Appointment.--The Director and members of the Board 
        shall be appointed by the President, by and with the advice and 
        consent of the Senate.
            (3) Duties of the board.--The Board shall--
                    (A) advise the Director on new and emerging areas 
                of research and industry that would benefit from 
                investment from the Bank; and
                    (B) critically evaluate the success of the Bank's 
                investments in helping to commercialize scientific 
                discoveries and create new companies and jobs.

SEC. 102. FUNCTIONS OF THE BANK.

    (a) In General.--The Bank is authorized and directed to promote the 
commercialization of science and engineering discoveries.
    (b) Provision of Grants, Loans, and Other Assistance.--The Bank 
shall provide grants, loans, and other assistance to eligible entities 
and individuals to enable the entities and individuals to perform the 
necessary research and development to make research discoveries 
attractive for private investment that will lead to the development of 
new companies, products, and jobs.

SEC. 103. ANNUAL REPORTS.

    (a) In General.--The Board, in consultation with the Director, 
shall submit an annual report to Congress on or before the 15th day of 
April of each year summarizing the activities of the Bank and making 
such recommendations as the Board, in consultation with the Director, 
determines appropriate.
    (b) Specific Metrics.--Each annual report submitted under 
subsection (a) shall include specific metrics that quantify the success 
of the Bank's investments, including information about--
            (1) patents for discoveries and products supported by the 
        Bank;
            (2) products commercialized with the help of Bank 
        investments;
            (3) new companies started because of Bank investments; and
            (4) jobs that have resulted because of Bank investments.

SEC. 104. GRANTS TO INSTITUTIONS OF HIGHER EDUCATION AND RESEARCH 
              INSTITUTES.

    (a) In General.--The Bank, acting through the Director, shall award 
grants to eligible entities to carry out activities described in this 
section.
    (b) Eligible Entities.--In this title, the term ``eligible entity'' 
means--
            (1) an institution of higher education (as defined in 
        section 101 of the Higher Education Act of 1965 (20 U.S.C. 
        1001)); or
            (2) a nonprofit research institution that focuses on 
        science research.
    (c) Advisory Panel.--Before awarding grants under this section, the 
Director shall convene an advisory panel of experts on technology 
transfer, including business leaders and scientific researchers, who 
shall make recommendations to the Director about those eligible 
entities, that apply for funding under this section, most likely to be 
able to use grant funds awarded under this title to foster the 
development of new companies, products, and jobs.
    (d) Awarding of Grants.--The Director shall award grants, on a 
competitive basis, to eligible entities to enable the eligible entities 
to develop new companies, products, or jobs and technologies in a 
specific research area, including the following:
            (1) Life sciences and medicine.
            (2) Computer sciences, communications, and technology.
            (3) Physical sciences and engineering.
            (4) Other research areas determined important for economic 
        development by the Director.
    (e) Priority.--In awarding grants under this section, the Director 
shall give priority to entities that--
            (1) receive a significant amount of Federal funding to 
        conduct science research from the National Science Foundation, 
        the Department of Energy, the National Institutes of Health, or 
        other agencies that the Director determines appropriate;
            (2) do not have a significant proof of concept fund already 
        established at the entity;
            (3) have established relationships with business and 
        industry that are likely to be able to use and commercialize 
        science and engineering discoveries and may be in close 
        proximity to such industry and businesses;
            (4) demonstrate an institutional environment that is 
        supportive of business development, including--
                    (A) an institutional strategic plan for business 
                development; and
                    (B) a plan to leverage Federal investments with 
                State, local, private, or other investments; and
            (5) demonstrate the appropriate administrative capacity to 
        encourage the disclosure, patenting, and development of new 
        companies, products, or jobs.
    (f) Use of Funds.--
            (1) In general.--An eligible entity that receives a grant 
        under this section may use the grant funds for the following:
                    (A) Supporting researchers that seek to develop 
                science and engineering discoveries into new companies, 
                products, or jobs, including additional research or 
                data collection with the goal of making a particular 
                discovery attractive to investment from private 
                entities such as corporations and venture capital 
                firms.
                    (B) Awarding subgrants to individual investigators 
                to carry out the activities described in subparagraph 
                (A).
                    (C) Constructing facilities and creating business 
                incubators to carry out the activities described in 
                subparagraph (A).
                    (D) Attracting additional private investment to 
                grow and maintain the eligible entity's proof of 
                concept funding.
            (2) Subgrants.--
                    (A) In general.--In awarding subgrants to 
                individual investigators as described in paragraph 
                (1)(B), an eligible entity shall consult with business 
                leaders in relevant economic sectors to identify 
                technologies that are most promising and likely to 
                attract private investment with research and 
                development funded by the proof of concept funding.
                    (B) Advisory committee.--
                            (i) In general.--An eligible entity shall 
                        convene an advisory committee of researchers 
                        and business leaders in the appropriate sector 
                        to review and recommend applications for 
                        subgrants under this subsection.
                            (ii) Consideration of recommendations.--An 
                        eligible entity shall take into consideration 
                        the recommendations of the advisory committee 
                        convened under clause (i) when making decisions 
                        about subgrants under this subsection.
                            (iii) Written justification.--If an 
                        eligible entity's grant making decision is 
                        different from the recommendations of the 
                        advisory committee under this subparagraph, the 
                        entity shall submit written justification for 
                        the decision to the Director.
            (3) Constructing facilities.--
                    (A) In general.--In using funds to construct 
                facilities pursuant to paragraph (1)(C), an eligible 
                entity shall consult with business leaders in relevant 
                economic sectors to identify facilities that would most 
                help the eligible entity meet the goals under paragraph 
                (1)(A).
                    (B) Advisory committee.--
                            (i) In general.--An eligible entity shall 
                        convene an advisory committee of researchers 
                        and business leaders in the appropriate sector 
                        to make recommendations about facilities 
                        construction.
                            (ii) Consideration of recommendations.--An 
                        eligible entity shall take into consideration 
                        the recommendations of the advisory committee 
                        convened under clause (i) when making decisions 
                        about facilities construction.
                            (iii) Written justification.--If an 
                        eligible entity's decision is different from 
                        the recommendations of the advisory committee 
                        under this subparagraph, the entity shall 
                        submit written justification for the decision 
                        to the Director.
    (g) Reports.--
            (1) In general.--Each eligible entity that receives a grant 
        under this section shall submit a report to the Director each 
        year during the grant period and for 5 years after the grant 
        period has ended.
            (2) Content of reports.--The reports submitted under 
        paragraph (1) shall--
                    (A) detail the subgrants and facilities 
                construction decisions the entity has made since 
                submitting its last report to the Director;
                    (B) update the Director on the status and results 
                of subgrants and facilities construction made from 
                grant funding;
                    (C) report on the companies, products, jobs, 
                venture capital, and other investments and funding that 
                have resulted from funding provided by the grant 
                awarded under this section;
                    (D) report on the degree to which Federal 
                investments have been leveraged, including appropriate 
                measures of returns on Federal investments; and
                    (E) provide other information that the Director 
                determines necessary to evaluate the efficacy of the 
                grant.

SEC. 105. GRANTS TO INDIVIDUALS.

    (a) In General.--The Bank, acting through the Director, shall award 
grants to individual investigators at eligible entities, as defined in 
section 104(b), who seek to develop new science and engineering 
discoveries into new companies, products, or jobs.
    (b) Application.--Each individual who desires a grant under this 
section shall submit an application jointly with the technology 
transfer office, or other similar office, at the individual's 
institution. Such application shall--
            (1) demonstrate that the eligible institution will provide 
        to the individual sufficient support in the aid of developing 
        the specific discovery named in the application into a new 
        company or product, or new jobs, with the aid of the grant 
        under this section; and
            (2) be submitted at such time, in such manner, and 
        containing such additional information as the Director may 
        require.
    (c) Priority.--In awarding grants under this section, the Director 
shall give priority to individuals--
            (1) at institutions that lack a significant proof of 
        concept fund;
            (2) who receive or have recently received Federal research 
        funding; and
            (3) who demonstrate a capacity to commercialize their 
        research discovery.

SEC. 106. LOANS TO PRIVATE COMPANIES AND INDIVIDUALS.

    The Bank may make loans, at competitive interest rates, to private 
companies and individual investigators in order to promote the 
development of new science and engineering discoveries into new 
companies, products, or jobs.

SEC. 107. AUTHORITY TO RESCIND FUNDING.

    (a) Rescission.--The Director shall rescind grants and loans 
awarded and loans made to individuals, eligible entities, or private 
companies under this title that do not use such grants or loans to make 
reasonable attempts to develop discoveries into new companies, 
products, or jobs.
    (b) Repayment.--The Director shall require the repayment of grants 
and loans made under this section from individuals, eligible entities, 
and private companies that are significantly unsuccessful at creating 
new companies, products, or jobs.

        TITLE II--IMPROVING SCIENCE AND TECHNOLOGY JOB TRAINING

SEC. 201. IMPROVING SCIENCE AND TECHNOLOGY JOB TRAINING.

    Section 510 of the National Science Foundation Authorization Act of 
2010 (42 U.S.C. 1869) is amended by adding at the end the following:
    ``(e) Additional Industry-Focused IGERT Program Funding 
Authorized.--
            ``(1) In general.--The Director of the National Science 
        Foundation shall award grants, on a competitive basis, to 
        eligible institutions to enable such institutions to support 
        students who perform some or all of their graduate research in 
        an industry setting.
            ``(2) Eligible institution.--The term `eligible 
        institution' means an institution of higher education that--
                    ``(A) is receiving, as of the date of the 
                application submitted under paragraph (3), funding 
                under the Integrative Graduate Education and Research 
                Traineeship (referred to as `IGERT') program; and
                    ``(B) enrolls students who are interested in 
                performing some or all of their graduate research in an 
                industry setting.
            ``(3) Application.--An eligible institution that desires to 
        receive a grant under this subsection shall submit an 
        application to the Director of the National Science Foundation 
        at such time, in such manner, and accompanied by such 
        information as the Director may require.
            ``(4) Peer review and priority.--In awarding grants under 
        this subsection, the Director of the National Science 
        Foundation shall--
                    ``(A) consider the recommendations from a peer-
                review process; and
                    ``(B) give priority to eligible institutions that--
                            ``(i) have strong pre-existing 
                        relationships with companies that are located 
                        near the institution and with companies whose 
                        research, development, and products are related 
                        to the type of research training that the 
                        institution's IGERT supports; and
                            ``(ii) are likely to find career placements 
                        in industry for students described in paragraph 
                        (2)(B).
            ``(5) Renewal.--Grants awarded under this subsection may be 
        renewed on a similar timeframe as other IGERT programs.
            ``(6) Use of funds.--An eligible institution that receives 
        funding under this subsection shall use such funding to award 
        grants to, and otherwise support, students who pursue graduate 
        research in an industry setting.''.

SEC. 202. INDUSTRY-RELATED REQUIREMENTS FOR CERTAIN GRADUATE RESEARCH 
              FELLOWSHIPS.

    (a) Training Requirement.--An institution of higher education that 
enrolls students who receive funding under a National Science 
Foundation graduate research fellowship, a National Institutes of 
Health national research service award, or any Federal program that 
provides funding to train students at the graduate level for careers in 
scientific research and development in either an academic, nonprofit, 
or industry setting, shall provide students who are receiving such 
funding with training related to--
            (1) intellectual property protection;
            (2) commercialization; and
            (3) the development of science discoveries.
    (b) Training Program Components.--The training described in 
subsection (a) shall include the provision of information about:
            (1) The importance of disclosing discoveries and filing for 
        patents.
            (2) Obtaining proof of concept or development funding.
            (3) The characteristics that make a scientific discovery 
        attractive to private investment.
            (4) Resources that may assist researchers in creating a new 
        start-up company.
    (c) Exception.--An institution of higher education that enrolls 
fewer than 6 students who receive funding under a National Science 
Foundation graduate research fellowship, a National Institutes of 
Health national research service award, or any Federal program that 
provides funding to train students at the graduate level for careers in 
scientific research and development in either an academic, nonprofit, 
or industry setting shall be exempted from the requirements described 
in subsection (a).
    (d) Grants Authorized.--The Director of the National Science 
Foundation shall award grants to institutions of higher education, as 
defined in section 101(a) of the Higher Education Act of 1965 (20 
U.S.C. 1001(a)), that are subject to the requirements described in 
subsection (a) to enable such institutions to develop the curricula 
necessary to fulfill such requirements.

              TITLE III--GRANTS FOR CURRICULUM DEVELOPMENT

SEC. 301. GRANTS FOR CURRICULUM DEVELOPMENT OF PROFESSIONAL SCIENCE 
              MASTERS PROGRAMS AT THE NATIONAL SCIENCE FOUNDATION.

    The National Science Foundation Authorization Act of 2010 (42 
U.S.C. 1861 note et seq.) is amended by adding at the end the 
following:

``SEC. 528. GRANTS FOR CURRICULUM DEVELOPMENT OF PROFESSIONAL SCIENCE 
              MASTERS PROGRAMS AT THE NATIONAL SCIENCE FOUNDATION.

    ``(a) Grants Authorized.--The Director of the National Science 
Foundation shall award grants to institutions of higher education to 
enable such institutions to develop professional science masters 
programs.
    ``(b) Professional Science Masters Program.--Each professional 
science masters program developed with funds awarded under subsection 
(a) shall--
            ``(1) be a masters degree program;
            ``(2) prepare students for a career in business, industry, 
        or at a nonprofit organization;
            ``(3) provide students with research experiences, 
        internship experiences, and the skills needed to succeed in 
        business, industry, and nonprofit organizations;
            ``(4) prepare students to be part of a workforce in the 
        United States that--
                    ``(A) is well-trained in science, technology, 
                engineering, and mathematics; and
                    ``(B) responds to the changing needs of society and 
                employers;
            ``(5) prepare students in the areas of science, technology, 
        engineering, and mathematics where there is a high or emerging 
        need for knowledgeable and skilled employees;
            ``(6) involve a diverse group of faculty members that--
                    ``(A) have appropriate research and teaching 
                expertise in the fields of science, technology, 
                engineering, and mathematics; and
                    ``(B) includes instructors who have expertise 
                specifically relevant to preparing students for careers 
                in business, industry, and nonprofit organizations;
            ``(7) provide students with practical skills training that 
        meets the needs of employers; and
            ``(8) create partnerships between academic institutions and 
        potential employers to determine jointly high-need areas of 
        science, technology, engineering, and mathematics, as well as 
        the kinds of training needed for careers in such areas.
    ``(c) Priority.--In awarding grants under this section, the 
Director of the National Science Foundation shall award grants through 
a competitive, peer-reviewed process and give priority to institutions 
of higher education that demonstrate a commitment to implementing and 
sustaining the teaching of the curriculum developed through the grant 
program.''.
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