A bill to amend the National Aeronautics and Space Act of 1958 to establish a centennial challenge program and establish a National Aeronautics and Space Foundation.

SECTION 1. CENTENNIAL CHALLENGE PROGRAM.

    Title III of the National Aeronautics and Space Act of 1958 (42 
U.S.C. 2451 et seq.), is amended by adding at the end the following:

``SEC. 316. AUTHORITY FOR COMPETITIVE PRIZE AWARD PROGRAM TO ENCOURAGE 
              DEVELOPMENT OF ADVANCED SPACE AND AERONAUTICAL 
              TECHNOLOGIES.

    ``(a) Program Authorized.--The Administrator may carry out a 
program, known as the Centennial Challenge Program, to award prizes to 
stimulate innovation in basic and applied research, technology 
development, and prototype demonstration that have the potential for 
application to the performance of the space and aeronautical activities 
of the Administration.
    ``(b) Program Requirements.--
            ``(1) Competitive process.--Recipients of prizes under the 
        program under this section shall be selected through one or 
        more competitions conducted by the Administrator.
            ``(2) Advertisement of competitions.--The Administrator 
        shall widely advertise any competitions conducted under the 
        program.
    ``(c) Registration; Assumption of Risk.--
            ``(1) Registration.--Each potential recipient of a prize in 
        a competition under the program under this section shall 
        register for the competition.
            ``(2) Assumption of risk.--In registering for a competition 
        under paragraph (1), a potential recipient of a prize shall 
        assume any and all risks, and waive claims against the United 
        States Government and its related entities (including 
        contractors and subcontractors at any tier, suppliers, users, 
        customers, cooperating parties, grantees, investigators, and 
        detailees), for any injury, death, damage, or loss of property, 
        revenue, or profits, whether direct, indirect, or 
        consequential, arising from participation in the competition, 
        whether such injury, death, damage, or loss arises through 
        negligence or otherwise, except in the case of willful 
        misconduct.
    ``(d) Budgeting and Awarding of Funds.--
            ``(1) Availability of funds.--Any funds appropriated to 
        carry out this section shall remain available until expended, 
        but for not more than 4 fiscal years.
            ``(2) Deposit and withdrawal of funds.--When a prize is 
        offered, the total amount of funding made available for that 
        prize shall be deposited in the Centennial Challenge Trust 
        Fund. If funding expires before a prize is awarded, the 
        Administrator shall deposit additional funds in the account to 
        ensure the availability of funding for all prizes. If a prize 
        competition expires before its goals are met, the Administrator 
        may redesignate those funds for a new challenge, but any 
        redesignated funds will be considered as newly deposited for 
        the purposes of paragraph (3). All cash awards made under this 
        section shall be paid from that account.
            ``(3) Overall limit.--The Administrator may not deposit 
        more than $25,000,000 annually in the Centennial Challenge 
        Trust Fund.
            ``(4) Maximum prize.--No competition under the program may 
        result in the award of more than $1,000,000 in cash prizes 
        without the approval of the Administrator.
    ``(e) Relationship to Other Authority.--The Administrator may 
exercise the authority in this section in conjunction with or in 
addition to any other authority of the Administrator to acquire, 
support, or stimulate basic and applied research, technology 
development, or prototype demonstration projects.''.

SEC. 2. NATIONAL AERONAUTICS AND SPACE FOUNDATION.

    Title III of the National Aeronautics and Space Act of 1958 (42 
U.S.C. 2451 et seq.), as amended by section 1, is amended by adding at 
the end the following:

``SEC. 317. NATIONAL AERONAUTICS AND SPACE FOUNDATION.

    ``(a) In General.--There is established a charitable and nonprofit 
corporation to be known as the National Aeronautics and Space 
Foundation.
    ``(b) Purposes.--The purposes of the foundation are--
            ``(1) to encourage private gifts of real and personal 
        property or any income therefrom or other interest therein for 
        the benefit of, or in connection with, NASA, its activities, or 
        its services; and
            ``(2) to further the public's knowledge of and inspiration 
        by the Earth, the Earth's atmosphere, space, and celestial 
        bodies in space, for current and future generations of 
        Americans.
    ``(c) Board of Directors.--
            ``(1) In general.--The Foundation shall be governed by a 
        board of directors of 6 individuals appointed by the 
        Administrator, in consultation with the chairman and ranking 
        member of the Senate Committee on Commerce, Science, and 
        Transportation and of the House of Representatives Committee on 
        Science. The Administrator shall designate 1 member to serve as 
        chair.
            ``(2) Term of office.--Each member shall serve for a term 
        of 6 years, except that of the members first appointed to the 
        board--
                    ``(A) 1 member shall be appointed for a term of 1 
                year;
                    ``(B) 1 member shall be appointed for a term of 2 
                years;
                    ``(C) 1 member shall be appointed for a term of 3 
                years;
                    ``(D) 1 member shall be appointed for a term of 4 
                years;
                    ``(E) 1 member shall be appointed for a term of 5 
                years; and
                    ``(F) 1 member shall be appointed for a term of 6 
                years.
            ``(3) Vacancies.--An individual appointed to fill a vacancy 
        occurring other than by the expiration of a term shall be 
        appointed for the remainder of the term of the former member 
        the individual succeeds.
            ``(4) Status.--Membership on the Board shall not be deemed 
        to be an office within the meaning of the statutes of the 
        United States.
            ``(5) Administrator to serve ex officio.--The Administrator 
        shall be a member of the board ex officio but without the right 
        to vote.
            ``(6) By-laws.--Upon the appointment and qualification of 
        all members of the board, the board may by majority vote adopt 
        by-laws, adopt an official seal (which shall be judicially 
        recognized), and establish a schedule for meetings and a 
        mechanism for calling non-scheduled meetings. Except as 
        provided in the preceding sentence and unless modified by the 
        Board--
                    ``(A) a majority of the members serving shall 
                consitute a quorum; and
                    ``(B) the board shall meet at least once each year 
                and at the call of the chair.
            ``(7) Compensation and expenses.--No compensation shall be 
        paid to the members of the Board for their services as members, 
        but they shall be reimbursed for actual and necessary traveling 
        and subsistence expenses incurred by them in the performance of 
        their duties as such members out of Foundation funds available 
        to the Board for such purposes.
    ``(d) Powers and Duties.--
            ``(1) In general.--Except as otherwise provided in this 
        section, the Foundation shall have the powers of, and be 
        subject to the limitations of, a charitable and nonprofit 
        corporation provided under the laws of the State (or the 
        District of Columbia) in which it is incorporated.
            ``(2) Perpetual succession; member liability.--The 
        Foundation shall have perpetual succession, with all the usual 
        powers and obligations of a corporation acting as a trustee, 
        including the power to sue and to be sued in its own name, but 
        the members of the Board shall not be personally liable, except 
        for malfeasance.
            ``(3) Contracts; grants; other instruments.--The Foundation 
        shall have the power to enter into contracts or grants, to 
        execute instruments, and generally to do any and all lawful 
        acts necessary or appropriate to its purposes as approved by 
        the board.
            ``(4) Gifts; devises; bequests.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Foundation may accept, receive, 
                solicit, hold, administer, and use any gifts, devises, 
                or bequests, either absolutely or in trust, of real or 
                personal property or any income therefrom or other 
                interest therein for the benefit of or in connection 
                with, NASA, its activities, or its services, including 
                a gift, devise, or bequest that is encumbered, 
                restricted, or subject to beneficial interests of 
                private persons if any current or future interest 
                therein is for the benefit of NASA, its activities, or 
                its services. For purposes of this paragraph, an 
                interest in real property includes easements or other 
                rights for preservation, conservation, protection, or 
                enhancement by and for the public of natural, scenic, 
                historic, scientific, educational, inspirational, or 
                recreational resources.
                    ``(B) Limitation.--The Foundation may not accept a 
                gift, devise, or bequest which entails any expenditure 
                other than from the resources of the Foundation.
    ``(e) Tax Status and Functions.--
            ``(1) Tax-exempt status of foundation.--The Foundation and 
        any income or property received or owned by it, and all 
        transactions relating to such income or property, shall be 
        exempt from all Federal, State, and local taxation with respect 
        thereto.
            ``(2) In-lieu-of payments.--The Foundation may, in the 
        discretion of the board--
                    ``(A) contribute toward the costs of local 
                goverment in amounts not in excess of those which it 
                would be obligated to pay such government if it were 
                not exempt from taxation under paragraph (A) or by 
                virtue of its being a charitable and nonprofit 
                corporation; and
                    ``(B) may contribute with respect to property 
                transferred to it and the income derived therefrom if 
                such agreement is a condition of the transfer.
            ``(3) Deductibility of contributions to foundation.--Gifts 
        and other transfers made to or for the use of the Foundation 
        shall be regarded as contributions, gifts, or transfers to or 
        for the use of the United States.
    ``(f) Cooperative Work With NASA.--
            ``(1) NASA support contracts.--The Administrator may 
        contract with the Foundation for the performance of its duties 
        and activities in support of the Administration.
            ``(2) NASA may not accept funds from foundation.--Neither 
        NASA nor any employee thereof may be authorized to accept funds 
        from the Foundation.
            ``(3) Foundation funding may not supplement appropriated 
        funds activities.--Except as otherwise specifically provided by 
        statute, the Foundation may not obligate or expend funds to 
        directly supplement any program or activity of NASA, or any 
        other Federal agency, for which appropriated funds may be 
        obligated or expended.
    ``(g) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the National Aeronautics and Space 
        Administration.
            ``(2) Board.--The term `board' means the board of directors 
        of the Foundation.
            ``(3) Foundation.--The term `Foundation' means the National 
        Aeronautics and Space Foundation established by subsection (a).
            ``(4) NASA.--The term `NASA' means the National Aeronautics 
        and Space Administration.''.

Summary: Amends the National Aeronautics and Space Act of 1958 to: (1) authorize the Administrator of the National Aeronautics and Space Administration (NASA) to carry out a Centennial Challenge Program to award prizes to stimulate innovation in basic and applied research, technology development, and prototype demonstration that have the potential for application to the performance of NASA's space and aeronautical activities; and (2) establish a charitable and nonprofit corporation to be known as the National Aeronautics and Space Foundation to encourage private gifts of real and personal property for the benefit of, or in connection with, NASA and to further the public's knowledge of, and inspiration by, the Earth and space.