15 U.S.C. § 3719 — Prize competitions

Page 2062 TITLE 15—COMMERCE AND TRADE § 3719 1885a or 1885b of title 42 in the areas of science, engineering, technology, and mathematics. (B) Designation Not later than 30 days after the date that the National Academy of Sciences submits the list of recommended individuals to serve as advisors, the President shall designate 50 individuals to serve as advisors to the Coun- cil. (C) Requirement to consult The Council shall develop the comprehen- sive agenda required by paragraph (1) in con- sultation with the advisors. (4) Initial submission and updates (A) Initial submission Not later than 1 year after August 9, 2007, the Council shall submit to Congress and the President the comprehensive agenda re- quired by paragraph (1). (B) Updates At least once every 2 years, the Council shall update the comprehensive agenda re- quired by paragraph (1) and submit each such update to Congress and the President. (e) Optional assignment Notwithstanding subsection (a) and para- graphs (1) and (2) of subsection (c), the President may designate an existing council to carry out the requirements of this section. (Pub. L. 110–69, title I, § 1006, Aug. 9, 2007, 121 Stat. 578.) Editorial Notes CODIFICATION Section was enacted as part of the America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science Act, also known as the America COMPETES Act, and not as part of the Stevenson-Wydler Technology Innovation Act of 1980 which comprises this chapter. Executive Documents DESIGNATION OF THE COMMITTEE ON TECHNOLOGY OF THE NATIONAL SCIENCE AND TECHNOLOGY COUNCIL TO CARRY OUT CERTAIN REQUIREMENTS OF THE AMERICA COMPETES ACT Memorandum of the President of the United States, Apr. 10, 2008, 73 F.R. 20523, provided: Memorandum for the Director of the Office of Science and Technology Policy By the authority vested in me as President of the United States by the Constitution and the laws of the United States of America, including section 1006(e) of the America COMPETES Act (Public Law 110–69) (the ‘‘Act’’), I hereby designate the Committee on Tech- nology of the National Science and Technology Council to carry out the responsibilities assigned to the Council on Innovation and Competitiveness in section 1006 of the Act. The Director of the Office of Science and Technology Policy is authorized and directed to publish this memo- randum in the Federal Register. GEORGE W. BUSH. § 3719. Prize competitions (a) Definitions In this section: (1) Agency The term ‘‘agency’’ means a Federal agency. (2) Director The term ‘‘Director’’ means the Director of the Office of Science and Technology Policy. (3) Federal agency The term ‘‘Federal agency’’ has the meaning given under section 3703 of this title, except that term shall not include any agency of the legislative branch of the Federal Government. (4) Head of an agency The term ‘‘head of an agency’’ means the head of a Federal agency. (b) In general Each head of an agency, or the heads of mul- tiple agencies in cooperation, may carry out a program to award prizes competitively to stimu- late innovation that has the potential to ad- vance the mission of the respective agency. (c) Prize competitions For purposes of this section, a prize competi- tion may be 1 or more of the following types of activities: (1) A point solution prize that rewards and spurs the development of solutions for a par- ticular, well-defined problem. (2) An exposition prize competition that helps identify and promote a broad range of ideas and practices that may not otherwise at- tract attention, facilitating further develop- ment of the idea or practice by third parties. (3) Participation prize competitions that create value during and after the competition by encouraging contestants to change their behavior or develop new skills that may have beneficial effects during and after the com- petition. (4) Such other types of prize competitions as each head of an agency considers appropriate to stimulate innovation that has the potential to advance the mission of the respective agen- cy. (d) Topics In selecting topics for prize competitions, the head of an agency shall consult widely both within and outside the Federal Government, and may empanel advisory committees. (e) Advertising The head of an agency shall widely advertise each prize competition to encourage broad par- ticipation. (f) Requirements and registration For each prize competition, the head of an agency shall publish a notice on a publicly ac- cessible Government website, such as www.challenge.gov, announcing— (1) the subject of the prize competition; (2) the rules for being eligible to participate in the prize competition; (3) the process for participants to register for the prize competition; (4) the amount of the cash prize purse or non-cash prize award; and (5) the basis on which a winner will be se- lected. Page 2063 TITLE 15—COMMERCE AND TRADE § 3719 (g) Eligibility To be eligible to win a cash prize purse under this section, an individual or entity— (1) shall have registered to participate in the prize competition under any rules promul- gated by the head of an agency under sub- section (f); (2) shall have complied with all the require- ments under this section; (3) in the case of a private entity, shall be incorporated in and maintain a primary place of business in the United States, and in the case of an individual, whether participating singly or in a group, shall be a citizen or per- manent resident of the United States; and (4) may not be a Federal entity or Federal employee acting within the scope of their em- ployment. (h) Consultation with Federal employees An individual or entity shall not be deemed in- eligible under subsection (g) because the indi- vidual or entity used Federal facilities or con- sulted with Federal employees during a prize competition if the facilities and employees are made available to all individuals and entities participating in the prize competition on an eq- uitable basis. (i) Liability (1) In general (A) Definition In this paragraph, the term ‘‘related enti- ty’’ means a contractor or subcontractor at any tier, and a supplier, user, customer, co- operating party, grantee, investigator, or detailee. (B) Liability Registered participants shall be required to agree to assume any and all risks and waive claims against the Federal Govern- ment and its related entities, except in the case of willful misconduct, for any injury, death, damage, or loss of property, revenue, or profits, whether direct, indirect, or con- sequential, arising from their participation in a prize competition, whether the injury, death, damage, or loss arises through neg- ligence or otherwise. (2) Insurance Participants shall be required to obtain li- ability insurance or demonstrate financial re- sponsibility, in amounts determined by the head of an agency, for claims by— (A) a third party for death, bodily injury, or property damage, or loss resulting from an activity carried out in connection with participation in a prize competition, with the Federal Government named as an addi- tional insured under the registered partici- pant’s insurance policy and registered par- ticipants agreeing to indemnify the Federal Government against third party claims for damages arising from or related to prize competition activities; and (B) the Federal Government for damage or loss to Government property resulting from such an activity. (3) Waivers (A) In general An agency may waive the requirement under paragraph (2). (B) List The Director shall include a list of all of the waivers granted under this paragraph during the preceding fiscal year, including a detailed explanation of the reason for grant- ing the waiver. (4) Exception The head of an agency may not require a participant to waive claims against the ad- ministering entity arising out of the unau- thorized use or disclosure by the agency of the intellectual property, trade secrets, or con- fidential business information of the partici- pant. (j) 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 in a prize competition without the written consent of the participant. (2) Licenses As appropriate and to further the goals of a prize competition, the Federal Government may negotiate a license for the use of intellec- tual property developed by a registered partic- ipant in a prize competition. (k) Judges (1) In general For each prize competition, the head of an agency, either directly or through an agree- ment under subsection (l), shall appoint one or more qualified judges to select the winner or winners of the prize competition on the basis described under subsection (f). Judges for each prize competition may include individuals from outside the agency, including from the private sector. (2) Restrictions A judge may not— (A) have personal or financial interests in, or be an employee, officer, director, or agent of any entity that is a registered participant in a prize competition; or (B) have a familial or financial relation- ship with an individual who is a registered participant. (3) Guidelines The heads of agencies who carry out prize competitions under this section shall develop guidelines to ensure that the judges appointed for such prize competitions are fairly balanced and operate in a transparent manner. (4) Exemption from chapter 10 of title 5 Chapter 10 of title 5 shall not apply to any committee, board, commission, panel, task force, or similar entity, created solely for the purpose of judging prize competitions under this section. (l) Administering the competition The head of an agency may enter into a grant, contract, cooperative agreement, or other agree- Page 2064 TITLE 15—COMMERCE AND TRADE § 3719 ment with a private sector for-profit or non- profit entity or State or local government agen- cy to administer the prize competition, subject to the provisions of this section. (m) Funding (1) In general Support for a prize competition under this section, including financial support for the de- sign and administration of a prize competition or funds for a cash prize purse, may consist of Federal appropriated funds and funds provided by private sector for-profit and nonprofit enti- ties. The head of an agency may request and accept funds from other Federal agencies, State, United States territory, local, or tribal government agencies, private sector for-profit entities, and nonprofit entities, to be available to the extent provided by appropriations Acts, to support such prize competitions. The head of an agency may not give any special consid- eration to any agency or entity in return for a donation. (2) Availability of funds Notwithstanding any other provision of law, funds appropriated for cash prize purses or non-cash prize awards under this section shall remain available until expended. No provision in this section permits obligation or payment of funds in violation of section 1341 of title 31. (3) Amount of prize (A) Announcement No prize competition may be announced under subsection (f) until all the funds need- ed to pay out the announced amount of the cash prize purse have been appropriated or committed in writing by a private or State, United States territory, local, or tribal gov- ernment source. (B) Increase in amount The head of an agency may increase the amount of a cash prize purse or non-cash prize award after an initial announcement is made under subsection (f) only if— (i) notice of the increase is provided in the same manner as the initial notice of the prize competition; and (ii) the funds needed to pay out the an- nounced amount of the increase have been appropriated or committed in writing by a private or State, United States territory, local, or tribal government source. (4) Limitation on amount (A) Notice to Congress No prize competition under this section may offer a cash prize purse or a non-cash prize award in an amount greater than $50,000,000 unless 30 days have elapsed after written notice has been transmitted to the Committee on Commerce, Science, and Transportation of the Senate and the Com- mittee on Science, Space, and Technology of the House of Representatives. (B) Approval of head of agency No prize competition under this section may result in the award of more than $1,000,000 in cash prize purses or non-cash prize awards without the approval of the head of an agency. (n) General Services Administration assistance Not later than 180 days after January 6, 2017, the General Services Administration shall pro- vide government wide services to share best practices and assist agencies in developing guidelines for issuing prize competitions. The General Services Administration shall develop a contract vehicle for both for-profit and non- profit entities and State, United States terri- tory, local, and tribal government entities, to provide agencies access to relevant products and services, including technical assistance in struc- turing and conducting prize competitions to take maximum benefit of the marketplace as they identify and pursue prize competitions to further the policy objectives of the Federal Gov- ernment. (o) Compliance with existing law (1) In general The Federal Government shall not, by virtue of offering a prize competition or providing a cash prize purse or non-cash prize award under this section, be responsible for compliance by registered participants in a prize competition with Federal law, including licensing, export control, and nonproliferation laws, and related regulations. (2) Other prize authority Nothing in this section affects the prize au- thority authorized by any other provision of law. (p) Biennial report (1) In general Not later than March 1 of every other year, the Director shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representa- tives a report on the activities carried out during the preceding 2 fiscal years under the authority in subsection (b). (2) Information included A report under this subsection shall include, for each prize competition under subsection (b), the following: (A) Proposed goals A description of the proposed goals of each prize competition. (B) Preferable method An analysis of why the utilization of the authority in subsection (b) was the pref- erable method of achieving the goals de- scribed in subparagraph (A) as opposed to other authorities available to the agency, such as contracts, grants, and cooperative agreements. (C) Amount of cash prize purses or non-cash prize awards The total amount of cash prize purses or non-cash prize awards awarded for each prize competition, including a description of amount of private funds contributed to the program, the sources of such funds, and the Page 2065 TITLE 15—COMMERCE AND TRADE § 3719 manner in which the amounts of cash prize purses or non-cash prize awards awarded and claimed were allocated among the accounts of the agency for recording as obligations and expenditures. (D) Solicitations and evaluation of submis- sions The methods used for the solicitation and evaluation of submissions under each prize competition, together with an assessment of the effectiveness of such methods and les- sons learned for future prize competitions. (E) Resources A description of the resources, including personnel and funding, used in the execution of each prize competition together with a de- tailed description of the activities for which such resources were used and an accounting of how funding for execution was allocated among the accounts of the agency for re- cording as obligations and expenditures. (F) Results A description of how each prize competi- tion advanced the mission of the agency con- cerned. (G) Plan A description of crosscutting topical areas and agency-specific mission needs that may be the strongest opportunities for prize com- petitions during the upcoming 2 fiscal years. (Pub. L. 96–480, § 24, as added Pub. L. 111–358, title I, § 105(a), Jan. 4, 2011, 124 Stat. 3989; amend- ed Pub. L. 114–329, title IV, § 401(b), Jan. 6, 2017, 130 Stat. 3016; Pub. L. 117–286, § 4(a)(71), Dec. 27, 2022, 136 Stat. 4313.) Editorial Notes AMENDMENTS 2022—Subsec. (k)(4). Pub. L. 117–286 substituted ‘‘chapter 10 of title 5’’ for ‘‘FACA’’ in heading and ‘‘Chapter 10 of title 5’’ for ‘‘The Federal Advisory Com- mittee Act (5 U.S.C. App.)’’ in text. 2017—Subsec. (c). Pub. L. 114–329, § 401(b)(1)(A), (B), substituted ‘‘Prize competitions’’ for ‘‘Prizes’’ in head- ing and ‘‘prize competition may be 1 or more of the fol- lowing types of activities’’ for ‘‘prize may be one or more of the following’’ in introductory provisions. Subsec. (c)(2). Pub. L. 114–329, § 401(b)(1)(C), inserted ‘‘competition’’ after ‘‘prize’’. Subsec. (c)(3), (4). Pub. L. 114–329, § 401(b)(1)(D), sub- stituted ‘‘prize competitions’’ for ‘‘prizes’’. Subsec. (f). Pub. L. 114–329, § 401(b)(2)(A), substituted ‘‘on a publicly accessible Government website, such as www.challenge.gov,’’ for ‘‘in the Federal Register’’ in introductory provisions. Subsec. (f)(1) to (3). Pub. L. 114–329, § 401(b)(2)(B), in- serted ‘‘prize’’ before ‘‘competition’’. Subsec. (f)(4). Pub. L. 114–329, § 401(b)(2)(C), sub- stituted ‘‘cash prize purse or non-cash prize award’’ for ‘‘prize’’. Subsec. (g). Pub. L. 114–329, § 401(b)(3)(A), substituted ‘‘cash prize purse’’ for ‘‘prize’’ in introductory provi- sions. Subsec. (g)(1). Pub. L. 114–329, § 401(b)(3)(B), inserted ‘‘prize’’ before ‘‘competition’’. Subsec. (h). Pub. L. 114–329, § 401(b)(4), inserted ‘‘prize’’ before ‘‘competition’’ in two places. Subsec. (i)(1)(B). Pub. L. 114–329, § 401(b)(5)(A), in- serted ‘‘prize’’ before ‘‘competition’’. Subsec. (i)(2)(A). Pub. L. 114–329, § 401(b)(5)(B), in- serted ‘‘prize’’ before ‘‘competition’’ in two places. Subsec. (i)(3), (4). Pub. L. 114–329, § 401(b)(5)(C), (D), added par. (3) and redesignated former par. (3) as (4). Subsec. (j)(1). Pub. L. 114–329, § 401(b)(6)(A), inserted ‘‘prize’’ before ‘‘competition’’. Subsec. (j)(2). Pub. L. 114–329, § 401(b)(6)(B), amended par. (2) generally. Prior to amendment, text read as fol- lows: ‘‘The Federal Government may negotiate a li- cense for the use of intellectual property developed by a participant for a competition.’’ Subsec. (k)(1). Pub. L. 114–329, § 401(b)(7)(A), sub- stituted ‘‘each prize competition’’ for ‘‘each competi- tion’’ in two places. Subsec. (k)(2)(A). Pub. L. 114–329, § 401(b)(7)(B), in- serted ‘‘prize’’ before ‘‘competition’’. Subsec. (k)(3). Pub. L. 114–329, § 401(b)(7)(C), inserted ‘‘prize’’ before ‘‘competitions’’ in two places. Subsec. (l). Pub. L. 114–329, § 401(b)(8), substituted ‘‘a grant, contract, cooperative agreement, or other agree- ment with a private sector for-profit or nonprofit enti- ty or State or local government agency to administer the prize competition, subject to the provisions of this section.’’ for ‘‘an agreement with a private, nonprofit entity to administer a prize competition, subject to the provisions of this section.’’ Subsec. (m)(1). Pub. L. 114–329, § 401(b)(9)(A), amended par. (1) generally. Prior to amendment, text read as fol- lows: ‘‘Support for a prize competition under this sec- tion, including financial support for the design and ad- ministration of a prize or funds for a monetary prize purse, may consist of Federal appropriated funds and funds provided by the private sector for such cash prizes. The head of an agency may accept funds from other Federal agencies to support such competitions. The head of an agency may not give any special consid- eration to any private sector entity in return for a do- nation.’’ Subsec. (m)(2). Pub. L. 114–329, § 401(b)(9)(B), sub- stituted ‘‘cash prize purses or non-cash prize awards’’ for ‘‘prize awards’’. Subsec. (m)(3)(A). Pub. L. 114–329, § 401(b)(9)(C)(i), amended subpar. (A) generally. Prior to amendment, text read as follows: ‘‘No prize may be announced under subsection (f) until all the funds needed to pay out the announced amount of the prize have been appropriated or committed in writing by a private source.’’ Subsec. (m)(3)(B). Pub. L. 114–329, § 401(b)(9)(C)(ii)(I), substituted ‘‘a cash prize purse or non-cash prize award’’ for ‘‘a prize’’ in introductory provisions. Subsec. (m)(3)(B)(i). Pub. L. 114–329, § 401(b)(9)(C)(ii)(II), inserted ‘‘competition’’ after ‘‘prize’’. Subsec. (m)(3)(B)(ii). Pub. L. 114–329, § 401(b)(9)(C)(ii)(III), inserted ‘‘or State, United States territory, local, or tribal government’’ after ‘‘private’’. Subsec. (m)(4)(A). Pub. L. 114–329, § 401(b)(9)(D)(i), sub- stituted ‘‘a cash prize purse or a non-cash prize award’’ for ‘‘a prize’’ and ‘‘Science, Space, and Technology’’ for ‘‘Science and Technology’’. Subsec. (m)(4)(B). Pub. L. 114–329, § 401(b)(9)(D)(ii), substituted ‘‘cash prize purses or non-cash prize awards’’ for ‘‘cash prizes’’. Subsec. (n). Pub. L. 114–329, § 401(b)(10), in heading, substituted ‘‘Services’’ for ‘‘Service’’ and, in text, sub- stituted ‘‘January 6, 2017,’’ for ‘‘January 4, 2011,’’ and inserted ‘‘for both for-profit and nonprofit entities and State, United States territory, local, and tribal govern- ment entities,’’ after ‘‘contract vehicle’’. Subsec. (o)(1). Pub. L. 114–329, § 401(b)(11), substituted ‘‘a prize competition or providing a cash prize purse or non-cash prize award’’ for ‘‘or providing a prize’’. Subsec. (p). Pub. L. 114–329, § 401(b)(12)(A), substituted ‘‘Biennial’’ for ‘‘Annual’’ in heading. Subsec. (p)(1). Pub. L. 114–329, § 401(b)(12)(B), sub- stituted ‘‘every other year’’ for ‘‘each year’’, ‘‘Science, Space, and Technology’’ for ‘‘Science and Technology’’, and ‘‘2 fiscal years’’ for ‘‘fiscal year’’. Subsec. (p)(2). Pub. L. 114–329, § 401(b)(12)(C)(i), sub- stituted ‘‘A report’’ for ‘‘The report for a fiscal year’’ in introductory provisions. Subsec. (p)(2)(C). Pub. L. 114–329, § 401(b)(12)(C)(ii), substituted ‘‘cash prize purses or non-cash prize Page 2066 TITLE 15—COMMERCE AND TRADE § 3720 awards’’ for ‘‘cash prizes’’ in heading and in two places in text. Subsec. (p)(2)(G). Pub. L. 114–329, § 401(b)(12)(C)(iii), added subpar. (G). § 3720. Office of Innovation and Entrepreneur- ship (a) In general The Secretary shall establish an Office of In- novation and Entrepreneurship to foster innova- tion and the commercialization of new tech- nologies, products, processes, and services with the goal of promoting productivity and eco- nomic growth in the United States. (b) Duties The Office of Innovation and Entrepreneurship shall be responsible for— (1) developing policies to accelerate innova- tion and advance the commercialization of re- search and development, including federally funded research and development; (2) identifying existing barriers to innova- tion and commercialization, including access to capital and other resources, and ways to overcome those barriers, particularly in States participating in the Experimental Pro- gram to Stimulate Competitive Research; (3) providing access to relevant data, re- search, and technical assistance on innovation and commercialization; (4) strengthening collaboration on and co- ordination of policies relating to innovation and commercialization, including those fo- cused on the needs of small businesses and rural communities, within the Department of Commerce, between the Department of Com- merce and other Federal agencies, and be- tween the Department of Commerce and ap- propriate State government agencies and in- stitutions, as appropriate; and (5) any other duties as determined by the Secretary. (c) Advisory committee The Secretary shall establish an Advisory Council on Innovation and Entrepreneurship to provide advice to the Secretary on carrying out subsection (b). (Pub. L. 96–480, § 25, as added Pub. L. 111–358, title VI, § 601, Jan. 4, 2011, 124 Stat. 4026.) § 3721. Federal loan guarantees for innovative technologies in manufacturing (a) Establishment The Secretary shall establish a program to provide loan guarantees for obligations to small- or medium-sized manufacturers for the use or production of innovative technologies. (b) Eligible projects A loan guarantee may be made under the pro- gram only for a project that re-equips, expands, or establishes a manufacturing facility in the United States— (1) to use an innovative technology or an in- novative process in manufacturing; (2) to manufacture an innovative technology product or an integral component of such a product; or (3) to commercialize an innovative product, process, or idea that was developed by re- search funded in whole or in part by a grant from the Federal government. (c) Eligible borrower A loan guarantee may be made under the pro- gram only for a borrower who is a small- or me- dium-sized manufacturer, as determined by the Secretary under the criteria established pursu- ant to subsection (l). (d) Limitation on amount A loan guarantee shall not exceed an amount equal to 80 percent of the obligation, as esti- mated at the time at which the loan guarantee is issued. (e) Limitations on loan guarantee No loan guarantee shall be made unless the Secretary determines that— (1) there is a reasonable prospect of repay- ment of the principal and interest on the obli- gation by the borrower; (2) the amount of the obligation (when com- bined with amounts available to the borrower from other sources) is sufficient to carry out the project; (3) the obligation is not subordinate to other financing; (4) the obligation bears interest at a rate that does not exceed a level that the Secretary determines appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks; and (5) the term of an obligation requires full re- payment over a period not to exceed the lesser of— (A) 30 years; or (B) 90 percent of the projected useful life, as determined by the Secretary, of the phys- ical asset to be financed by the obligation. (f) Defaults (1) Payment by Secretary (A) In general If a borrower defaults (as defined in regu- lations promulgated by the Secretary and specified in the loan guarantee) on the obli- gation, the holder of the loan guarantee shall have the right to demand payment of the unpaid amount from the Secretary. (B) Payment required Within such period as may be specified in the loan guarantee or related agreements, the Secretary shall pay to the holder of the loan guarantee the unpaid interest on and unpaid principal of the obligation as to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been rem- edied. (C) Forbearance Nothing in this subsection precludes any forbearance by the holder of the obligation for the benefit of the borrower which may be agreed upon by the parties to the obligation and approved by the Secretary. (2) Subrogation (A) In general If the Secretary makes a payment under paragraph (1), the Secretary shall be sub-