teria for awarding the prize, including the method by 
which the prize winner or winners will be selected. 
(3) TIME
TO
ANNOUNCEMENT.—The Director 
shall announce a prize competition within 18 months 
after receipt of appropriated funds. 
(f) FUNDING.— 
(1) FUNDING SOURCES.—Prizes under this sec-
tion shall consist of Federal appropriated funds and 
any funds raised pursuant to donations authorized 
under section 11(f) of the National Science Founda-
tion Act of 1950 (42 U.S.C. 1870(f)) for specific prize 
competitions. 
(2) ANNOUNCEMENT OF PRIZES.—The Director 
may not issue a notice as required by subsection 
(e)(2) until all of the funds needed to pay out the an-
nounced amount of the prize have been appropriated 
or committed in writing by another entity pursuant 
to paragraph (1). 
(g) ELIGIBILITY.—To be eligible to win a prize under 
this section, an individual or entity— 
(1) shall have complied with all of the require-
ments under this section; 
(2) in the case of a private entity, shall be incor-
porated in and maintain a primary place of business 
in the United States, and in the case of an indi-
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vidual, whether participating singly or in a group, 
shall be a United States citizen or national, or an 
alien lawfully admitted to the United States for per-
manent residence; 
(3) shall not be a Federal entity, a Federal em-
ployee acting within the scope of his or her employ-
ment, or a person employed at a Federal laboratory 
acting within the scope of his or her employment; and 
(4) shall not have utilized Federal funds to en-
gage in the research for which the prize is being 
awarded. 
(h) AWARDS.— 
(1) NUMBER OF COMPETITIONS.—The Director 
may announce up to 5 prize competitions through the 
end of fiscal year 2013. 
(2) SIZE OF AWARD.—The Director may deter-
mine the amount of each prize award based on the 
prize topic, but no award shall be less than 
$1,000,000 or greater than $3,000,000. 
(3) SELECTING
WINNERS.—The Director may 
convene an expert panel to select a winner of a prize 
competition. If the panel is unable to select a winner, 
the Director shall determine the winner of the prize. 
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(4) PUBLIC OUTREACH.—The Director shall pub-
licly award prizes utilizing the Foundation’s existing 
public affairs and public outreach resources. 
(i) ADMINISTERING THE COMPETITION.—The Director 
may enter into an agreement with a private, nonprofit enti-
ty to administer the prize competition, subject to the provi-
sions of this section. 
(j) INTELLECTUAL PROPERTY.—The Federal Govern-
ment shall not, by virtue of offering or awarding a prize 
under this section, be entitled to any intellectual property 
rights derived as a consequence of, or in direct relation to, 
the participation by a registered participant in a competi-
tion authorized by this section. This subsection shall not 
be construed to prevent the Federal Government from nego-
tiating a license for the use of intellectual property devel-
oped for a prize competition under this section. 
(k) LIABILITY.—The Director may require a registered 
participant in a prize competition under this section to 
waive liability against the Federal Government for injuries 
and damages that result from participation in such com-
petition. 
(l) NONSUBSTITUTION.—Any programs created under 
this section shall not be considered a substitute for Federal 
research and development programs. 
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(m) REPORTING REQUIREMENT.—Not later than 5 
years after the date of enactment of this Act, the National 
Science Board shall transmit to Congress a report con-
taining the results of a review and assessment of the pilot 
program under this section, including— 
(1) a description of the nature and status of all 
completed or ongoing prize competitions carried out 
under this section, including any scientific achieve-
ments, publications, intellectual property, or commer-
cialized technology that resulted from such competi-
tions; 
(2) any recommendations regarding changes to, 
the termination of, or continuation of the pilot pro-
gram; 
(3) an analysis of whether the program is at-
tracting contestants more diverse than the Founda-
tion’s traditional academic constituency; 
(4) an analysis of whether public awareness of 
innovation or of the goal of the particular prize or 
prizes is enhanced; 
(5) an analysis of whether the Foundation’s pub-
lic image or ability to increase public scientific lit-
eracy is enhanced through the use of innovation in-
ducement prizes; and 
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(6) an analysis of the extent to which private 
funds are being used to support registered partici-
pants. 
(n) EARLY TERMINATION OF CONTESTS.—The Direc-
tor shall terminate a prize contest before any registered par-
ticipant wins if the Director determines that an unregis-
tered entity has produced an innovation that would other-
wise have qualified for the prize award. 
(o) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.— 
(A) AWARDS.—There are authorized to be 
appropriated to the Director for the period en-
compassing fiscal years 2011 through 2013 
$12,000,000 for carrying out this section. 
(B) ADMINISTRATION.—Of the amounts au-
thorized in subparagraph (A), not more than 15 
percent for each fiscal year shall be available for 
the administrative costs of carrying out this sec-
tion. 
(2) CARRYOVER OF FUNDS.—Funds appropriated 
for prize awards under this section shall remain 
available until expended, and may be transferred, re-
programmed, or expended for other purposes as au-
thorized by law only after the expiration of 7 fiscal 
years after the fiscal year for which the funds were 
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