text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Reward Innovation in America Act''.
  
  SEC. 2. DEFINITIONS.
  
      In this Act:
              (1) Administering entity.--The term ``administering 
          entity'' means an entity with which the Secretary enters into 
          an agreement under section 4(e).
              (2) Competition.--The term ``competition'' means a 
          competition for an innovation prize under the program described 
          in section 4(a).
              (3) Innovation prize.--The term ``innovation prize'' means 
          a prize awarded to a participant who wins a competition.
              (4) Participant.--The term ``participant'' means an 
          individual or entity that participates in a competition.
              (5) Secretary.--The term ``Secretary'' means the Secretary 
          of Commerce.
  
  SEC. 3. NATIONAL INNOVATION PRIZES BOARD.
  
      (a) Establishment.--There is established in the Department of 
  Commerce a National Innovation Prizes Board (referred to in this Act as 
  the ``Board'').
      (b) Purposes.--The purposes of the Board are as follows:
              (1) To develop and administer the program described in 
          section 4(a).
              (2) To select the research topics for competitions.
              (3) To establish the rules of the competitions and the 
          criteria for winning innovation prizes.
              (4) To determine the amount of the innovation prize for 
          each competition.
              (5) To certify the winners of the competitions.
              (6) To determine the annual funding requirement for each 
          competition.
      (c) Membership.--
              (1) Number of members.--The Secretary shall determine the 
          number of members of the Board.
              (2) Chair.--The Secretary, or a designee of the Secretary, 
          shall serve as Chair of the Board.
              (3) Members.--
                      (A) From federal agencies.--The Secretary may 
                  appoint the heads of Federal agencies to serve as full 
                  members of the Board on a permanent basis.
                      (B) Non-federal members.--The Secretary may appoint 
                  to the Board individuals who are not officers or 
                  employees of the Federal Government and who have 
                  national reputations in the private sector, policy 
                  sector, or academic institutions.
              (4) Terms.--
                      (A) In general.--Except as provided in subparagraph 
                  (B), a member of the Board shall serve for a term of 3 
                  years.
                      (B) Initial terms.--The initial terms of members 
                  described in paragraph (3)(B) shall be staggered.
              (5) Vacancies.--A member of the Board described in 
          paragraph (3)(B) 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.
              (6) Status.--Except as provided in paragraph (7), a member 
          described in paragraph (3)(B) shall not be deemed to be an 
          officer or employee of the United States for purposes of the 
          laws or regulations of the United States.
              (7) Travel expenses.--A member described in paragraph 
          (3)(B) shall be allowed travel expenses, including per diem in 
          lieu of subsistence, at rates authorized for employees of the 
          Federal Government under subchapter I of chapter 57 of title 5, 
          United States Code.
  
  SEC. 4. INNOVATION PRIZES PROGRAM.
  
      (a) In General.--The program described in this subsection means a 
  program of competitions to award innovation prizes to eligible 
  individuals and entities to advance the research, development, and 
  commercial application of innovative technologies.
      (b) Eligible Individuals and Entities.--
              (1) In general.--The term ``eligible individual or entity'' 
          includes an individual, university, or small or large business 
          that complies with the requirements of paragraph (2).
              (2) Requirements.--An eligible individual or entity--
                      (A) shall have complied with such eligibility 
                  requirements for participation in a competition as the 
                  Board may establish and publish in the Federal Register 
                  under subsection (d)(2);
                      (B) in the case of a private entity, shall be 
                  incorporated in and maintain a primary place of 
                  business in the United States;
                      (C) in the case of an individual, whether 
                  participating in the program singly or in a group, 
                  shall be a citizen of, or an alien lawfully admitted 
                  for permanent residence in, the United States; and
                      (D) may not be--
                              (i) a Federal entity, such as a federally 
                          funded research and development center or a 
                          government-owned, contractor-operated 
                          laboratory;
                              (ii) a Federal employee acting within the 
                          scope of employment; or
                              (iii) an employee of a national laboratory 
                          acting within the scope of employment.
              (3) Consultation with federal employees.--An individual or 
          entity shall not be deemed ineligible under this subsection 
          because such individual or entity used Federal facilities or 
          consulted with Federal employees during a competition if such 
          facilities and employees are made available to all individuals 
          and entities participating in the competition on an equitable 
          basis.
      (c) Development of Program.--
              (1) Plan.--Not later than 120 days after the date of the 
          enactment of this Act, the Secretary shall prepare and submit 
          to the Committee on Commerce, Science, and Transportation of 
          the Senate and the Committee on Science and Technology of the 
          House of Representatives a plan for implementing the program 
          described in subsection (a) that includes--
                      (A) a description of how the research topics for 
                  competitions and the criteria for awarding the 
                  innovation prizes will be determined;
                      (B) the terms and conditions of the competitions;
                      (C) the time frame for the award of innovation 
                  prizes; and
                      (D) a description of the plans of the Secretary to 
                  partner with nonprofit organizations or Federal 
                  agencies to sponsor competitions or to outsource 
                  administration of competitions to nonprofit 
                  organizations under subsection (e).
              (2) Innovation prizes.--In developing the plan under 
          paragraph (1), the Secretary shall include the following 
          requirements:
                      (A) Categories.--There shall be 2 categories of 
                  innovation prizes as follows:
                              (i) 21st century innovation prizes.--21st 
                          Century Innovation Prizes shall be awarded in 
                          multiple competitions in different research 
                          areas. The amount of each 21st Century 
                          Innovation Prize award may not exceed 
                          $2,000,000.
                              (ii) Innovate america grand challenge 
                          prizes.--
                                      (I) In general.--Innovate America 
                                  Grand Challenge Prizes shall be awarded 
                                  in large, highly complex, and expensive 
                                  competitions that--
                                              (aa) are held every 2 to 4 
                                          years; and
                                              (bb) address research 
                                          objectives well beyond the 
                                          current state of the art and 
                                          that are intended to become 
                                          integral to major changes in 
                                          complex socio-technological 
                                          systems.
                                      (II) Amount of award.--The amount 
                                  of each Innovate America Grand 
                                  Challenge Prize award shall be 
                                  $5,000,000 or more, but not more than 
                                  $30,000,000.
                      (B) Awards.--The Board shall determine the amount 
                  of each innovation prize for each competition and may 
                  elect to award only a first place prize or to award 
                  first, second, and third place prizes.
      (d) Advertising and Notice to Participants.--
              (1) Advertising.--The Board shall advertise each 
          competition widely to encourage broad participation in each 
          competition, including by individuals, universities (including 
          historically Black colleges and universities and other 
          institutions serving minorities), and large and small 
          businesses (including businesses owned or controlled by 
          socially and economically disadvantaged persons).
              (2) Federal register notice.--The Board shall announce each 
          competition by publishing in the Federal Register a notice that 
          includes the subject of the competition, the duration of the 
          competition, the eligibility requirements for participation in 
          the competition, the process for participants to register for 
          the competition, the amount of the innovation prize, and the 
          criteria for awarding the innovation prize.
      (e) Administering Competitions.--The Board may enter into an 
  agreement with a private, nonprofit organization to administer 
  competitions. The duties of the administering entity under the 
  agreement shall include--
              (1) advertising competitions and the results of 
          competitions;
              (2) raising funds from private entities and individuals to 
          pay for administrative costs of competitions and to contribute 
          to cash innovation prizes;
              (3) working with the Board to develop the criteria for 
          selecting winners in competitions, based on goals provided by 
          the Secretary;
              (4) determining, in consultation with the Board, the 
          appropriate amount of each innovation prize to be awarded;
              (5) selecting judges for competitions using criteria 
          developed in consultation with the Board; and
              (6) preventing the unauthorized use or disclosure of the 
          intellectual property, trade secrets, and confidential business 
          information of participants.
      (f) Funding.--
              (1) Funding sources.--
                      (A) In general.--Innovation prizes awarded under 
                  the program described in subsection (a) shall consist 
                  of--
                              (i) funds authorized to be appropriated 
                          under section 6; and
                              (ii) any funds raised by the administering 
                          entity under subsection (e)(2).
                      (B) Federal agencies.--The Secretary may accept 
                  funds from other Federal agencies for innovation 
                  prizes.
              (2) Funding from other entities.--
                      (A) In general.--The Board is authorized to enter 
                  into agreements with other entities, including 
                  corporations, nonprofit organizations, and other 
                  government agencies, to offer joint innovation prizes 
                  if--
                              (i) the joint innovation prize supports the 
                          purposes of this Act;
                              (ii) the entity offering additional funds 
                          agrees to deposit the funds into a designated 
                          escrow account; and
                              (iii) the Board retains full authority over 
                          the competition and the awarding of the cash 
                          innovation prizes.
                      (B) Prohibition on special consideration in return 
                  for donations.--The Secretary may not give any special 
                  consideration to any private sector entity or 
                  individual in return for a donation to the 
                  administering entity to fund a competition.
              (3) Announcement of innovation prizes contingent on 
          funding.--
                      (A) In general.--The Secretary may not publish the 
                  notice in the Federal Register required by subsection 
                  (d)(2) until all the funds necessary to pay the 
                  innovation prize have been appropriated or committed in 
                  writing.
                      (B) Increases in amount of innovation prize.--The 
                  Secretary may increase the amount of an innovation 
                  prize after an initial announcement is made under 
                  subsection (d)(2) if--
                              (i) notice of the increase is published in 
                          the Federal Register; and
                              (ii) the funds needed to pay the amount of 
                          the increase have been appropriated or 
                          committed in writing.
      (g) Liability.--
              (1) Waiver of liability.--
                      (A) In general.--The Secretary may require 
                  participants to waive claims against the Federal 
                  Government and the administering entity (except claims 
                  for willful misconduct) for any injury, death, damage, 
                  or loss of property, revenue, or profits arising from 
                  participation in a competition.
                      (B) Notice.--The Secretary shall give notice of any 
                  waiver required under subparagraph (A) in the notice 
                  published in the Federal Register under subsection 
                  (d)(2).
                      (C) Exception.--The Secretary may not require a 
                  participant to waive claims against the administering 
                  entity arising out of the unauthorized use or 
                  disclosure by the administering entity of the 
                  intellectual property, trade secrets, or confidential 
                  business information of the participant.
              (2) Liability insurance.--
                      (A) Requirements.--A participant shall be required 
                  to obtain liability insurance or demonstrate financial 
                  responsibility, in amounts determined by the Secretary, 
                  for claims by--
                              (i) 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; and
                              (ii) the Federal Government for damage or 
                          loss to Government property resulting from 
                          participation in a competition.
                      (B) Federal government insured.--The Federal 
                  Government shall be named as an additional insured 
                  under an insurance policy required under subparagraph 
                  (A). A registered participant shall be required to 
                  agree to indemnify the Federal Government against third 
                  party claims for damages arising from or related to 
                  participation in a competition.
      (h) 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 
          for a competition.
              (2) Licenses.--The Federal Government may negotiate a 
          license for the use of intellectual property developed by a 
          participant for a competition.
  
  SEC. 5. REPORT.
  
      Not later than one year after the date of the enactment of this 
  Act, and annually thereafter, the Secretary shall submit to the 
  Committee on Commerce, Science, and Transportation of the Senate and 
  the Committee on Science and Technology of the House of Representatives 
  a report describing the activities of the program described in section 
  4(a), including--
              (1) a description of the methods used to select the 
          research topics of competitions and the amounts of the 
          innovation prizes;
              (2) a discussion of the features of competitions that 
          contribute to the success or lack of success of the 
          competitions;
              (3) the number of participants involved in the 
          competitions;
              (4) the amount of private funds contributed to the program 
          and the sources of such funds;
              (5) the effect of the program on public awareness of 
          innovation; and
              (6) the effect of the program on the public image of the 
          Department of Commerce.
  
  SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
  
      (a) In General.--
              (1) Awards.--There are authorized to be appropriated to the 
          Secretary to carry out the provisions of this Act--
                      (A) for each of fiscal years 2008 through 2012, 
                  $5,000,000 for awards described in section 
                  4(c)(2)(A)(i); and
                      (B) for fiscal year 2008, $30,000,000 for awards 
                  described in section 4(c)(2)(A)(ii).
              (2) Administration.--In addition to the amounts authorized 
          to be appropriated under paragraph (1), there are authorized to 
          be appropriated to the Secretary for each of fiscal years 2008 
          through 2012 $750,000 for the administrative costs of carrying 
          out this Act.
      (b) Carryover of Funds.--Funds appropriated to carry out the 
  provisions of this Act shall remain available until expended.
target: Reward Innovation in America Act - Establishes a National Innovation Prizes Board in the Department of Commerce, which shall develop and administer a program of competitions to award innovation prizes to eligible individuals and entities to advance the research, development, and commercial application of innovative technologies.
  
  Requires the Secretary of Commerce to submit a plan for implementing such program. Requires that there be two categories of prizes: (1) 21st Century Innovation Prizes, which shall be awarded in multiple competitions in different research areas; and (2) Innovate America Grand Challenge Prizes, which shall be awarded in large, highly complex, and expensive competitions that are held every two to four years and address research objectives well beyond the current state of the art and that are intended to become integral to major changes in complex socio-technological systems. Requires the Board to determine the amount of each prize for each competition.
  
  Instructs the Board to: (1) advertise competitions widely to encourage broad participation; and (2) publish notices of competitions in the Federal Register.
  
  Authorizes the Board to enter into an agreement with a private, nonprofit organization to administer competitions.
  
  Specifies that prizes awarded under the program shall consist of: (1) funds authorized to be appropriated pursuant to this Act; and (2) any funds raised by the administering entity to pay for administrative costs of competitions and to contribute to cash prizes.
  
  Requires the Secretary to submit annual reports describing the activities of the program.
feat_title: A bill to establish a program to award innovation prizes to individuals and entities for researching and developing innovative technologies, and for other purposes.