State shall be expended only for carrying on research and development activities in the facilities of tax-supported colleges and universities, including the landgrant colleges, within such State pursuant to contracts or other financial arrangements made by the Administrator under this section. In making such contracts or other financial arrangements, the Administrator shall give each individual institution the widest latitude in its selection of individual research and development projects, but the Administrator shall not be required to expend funds in any institution unless it submits proposals for the expenditure of such funds which the Administrator finds to be consistent with such general program and standards as he may, after receiving the advice of the Board, establish in order to carry out the objectives and provisions of this Act. For purposes of this section the term "State" includes Alaska, Hawaii, and Puerto Rico. Of the funds appropriated to the Foundation for research and development activities (excluding funds expressly appropriated for national defense), an additional amount of not less than 25 per centum shall be expended in the facilities of nonprofit organizations without regard to the above limitations relating to State quotas or the tax-supported character of the organization. In meeting the requirements of this subsection, the Administrator may take into account whatever funds may be expended by the Foundation for facilities to be operated by the land-grant, tax-supported, or other nonprofit organizations, even though the title or ownership rights of such facilities remain with the United States.

(d) The activities of the Foundation shall be construed as supplementing and not superseding, curtailing, or limiting any of the functions or activities of other Government agencies authorized to engage in scientific research and development. Funds allocated by the Administrator to other Government agencies shall be utilized for projects approved by the Administrator and undertaken on behalf of the Foundation, and shall be in addition to, and not in lieu of, funds regularly appropriated to such other Government agencies.

(e) In all research and development activities financed or otherwise supported by the Foundation, the Administrator shall make every effort to eliminate restraints upon the free expression of scientific views and to insure full freedom in the exercise of creative talents, in the development of new ideas, and in the methods of research. Any person engaged in such research and development activities shall not be precluded from independently discussing, writing, or publishing his own views and conclusions relating to such research and development.

SCHOLARSHIPS AND FELLOWSHIPS

SEC. 6. The Administrator is authorized to award scholarships and fellowships to persons for scientific study or scientific work in any field of science, including but not limited to the mathematical, physical, biological, medical, and social sciences at nonprofit institutions of higher education, or other institutions, selected by the recipient of such aid, for such periods as the Administrator may determine, in the United States or in foreign countries. Persons shall be selected for such scholarships and fellowships solely on the basis of aptitude, within the limits of such quotas as may be established to insure an equitable selection of such persons from among the States, the District of Columbia, and the Territories. Persons selected for such scholarships and fellowships may include employees of the Federal Government and such employees selected and detailed for scientific study or training shall not lose their status or seniority ratings for reason of absence from regularly assigned duties during the course of such study or training.

REGISTER OF SCIENTIFIC PERSONNEL

SEC. 7. The Administrator shall maintain a register of scientific and technical personnel and in other ways provide a central clearinghouse for information concerning all scientific and technical personnel in the United States and its possessions. No individual shall be listed in such register without his consent..

USE AND DISSEMINATION OF RESEARCH FINDINGS

SEC. 8. (a) The Administrator shall make and maintain an inventory of all current federally financed research and development projects. In cooperation with the Commissioner of Patents, the Administrator shall establish a central register of all inventions, discoveries, patents, patent rights, and findings, including references to related data, in which the United States or any agency thereof has any right, title, or interest, or which pursuant to this section have been freely dedicated to the public. The Administrator shall record, collect,

index, and promptly publish or cause to be published significant data on all inventions and discoveries and other findings produced in the course of federally financed research and development activities, or arrange with other Government agencies for such publishing, recording, collecting, and indexing. In consultation and collaboration with the Library of Congress and other Government agencies, the Administrator shall take such steps as he may deem necessary to make such information and other available significant scientific and technical information accessible to the public, including the preparation and distribution of reports, periodic catalogs, inventories, abstracts, translations, bibliographies, and microfilm and other reproductions thereof; and for such purposes the Administrator may utilize the facilities of Government agencies and other organizations to the extent that he deems necessary or desirable, and may contract for the expendi ture of funds for such purposes without regard to the provisions of section 87 of the Act of January 12, 1895 (28 Stat. 622), and section 11 of the Act of March 1, 1919 (40 Stat. 1270) (U. S. C., title 44, sec. 111).

(b) Each contract or other arrangement for federally financed research or development entered into between any Government agency and any organization shall provide that such organization will make available to such agency full data. on all inventions, discoveries, patents, patent rights, and findings produced in the course of such research or development, including such reports with respect thereto as may be required by such agency. Each Government agency, upon the request of the Administrator, shall make available to him such data and such reports with respect to research and development activities financed by such agency, as may be necessary for the purposes of this section.

(c) All inventions, discoveries, or findings in which the United States (or any Government agency), now or hereafter, hold any rights, including patent rights, shall be made available to the public on a nonexclusive and on a royalty-free basis to the extent the United States or such agency is entitled to do so under the rights held by it. Except as provided hereafter in this subsection and in subsection (d), any invention, discovery, or finding hereafter produced in the course of federally financed research and development shall, whether or not patented, be made freely available to the public and shall, if patented, be freely dedicated to the public. The requirements of this subsection, to the extent that they require modification of contracts or other financial arrangements already entered into by the United States (or any Government agency) shall not go into effect until one hundred and twenty days after the date of enactment of this Act.

(d) The head of any Government agency financing by contract, or otherwise administering, federally financed research and development activities, may, by stipulation in the contract or by other advance agreements with any organization, provide for the retention by the organization, or by the inventor, or by their assignees of such patent rights based on discoveries, inventions, or findings produced in the course of such research and development as the head of such Government agency deems fair and equitable, and consistent with the national interest: Provided, That (1) the head of such Government agency shall, before entering into any such contract or agreement, make a finding that the agency has made every reasonable effort to arrange for the conduct of the necessary research and development without entering into a contract containing such provision; (2) the organization shall contribute or shall have contributed substantially to the development of the particular inventions, discoveries, or findings for which patent rights are retained through earlier or current research and development activities financed by the organization; (3) in every case, the contract or agreement shall provide for at least an irrevocable, nonexclusive, royalty-free license for governmental purposes to the United States; and (4), in the case of any nonprofit organization, the head of such Government agency further determines (A) that the research and development is essential in the field of national defense or in such other fields as the President may specify for such purpose, and (B) that the patent rights retained will not be used to serve the special benefit of any organization conducted for profit or of any individual, and will be made available or licensed to applicants on a nonexclusive, uniform, and reasonable royalty basis.

In the administration of the provisions of this subsection, the head of any Government agency shall be guided by such rules and regulations as the President may deem necessary and prescribe by Executive order.

(e) The Administrator shall make a quarterly report to the President and to the Congress concerning contracts and agreements containing the provisions

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authorized by subsection (d). This report shall include a list of all contracts and agreements containing such a provision entered into by any Government agency during the preceding quarter, the reasons supporting the approval of such provision in each case, the amount of Federal funds expended or to be expended under each contract or agreement containing such a provision, the name of the organization with which the contract or agreement was made, and the general nature of the patent rights reserved for private use in each case. The report shall also include a list of all inventions, discoveries, or findings in which patent rights were permitted to be retained pursuant to the provisions of subsection (d) and which were first recorded or finally authorized during the preceding quarter, identification of the contract or agreement under which such inventions, discoveries, or findings were produced, and the nature of the rights retained. The report shall also include the Administrator's recommendations, if any, for such further Executive or legislative action as he may deem necessary. (f) Notwithstanding any other provision of this Act, the President, or any person designated for that purpose by him, may exempt from the requirements of this Act relating to dedication to the public, publication, dissemination, making available, or reporting information, data, patents, inventions, or discoveries relating to or produced in the course of federally financed research or development or in which the United States holds any rights, if and so long as the President or such designated person determines that such exemption is essential in the interest of national security.

INTERNATIONAL COOPERATION

SEC. 9. (a) The head of any Government agency is hereby authorized, with the approval of the President and through the Department of State, to conclude reciprocal agreements with foreign governments or agencies thereof, relating to the interchange of scientific and technological information (including models and samples for information purposes), and the use and availability of patents and patent rights owned or controlled by the respective governments.

(b) The Administrator is hereby authorized, with the approval of the President and through the Department of State, to cooperate in any international research or development activities consistent with the purposes or provisions of this Act and to expend for such international research activities such sums within the limit of appropriated funds as the Administrator may deem desirable.

(c) The Administrator may defray the expenses of representatives of Government agencies and other organizations and of individual scientists to accredited international scientific congresses and meetings whenever he deems it necessary in the promotion of the objectives of this Act.

INTERDEPARTMENTAL COORDINATION

SEC. 10. (a) There is hereby established an Interdepartmental Committee on Science, to consist of the Administrator, as Chairman, and the heads (or their designees) of such Government agencies engaged in or concerned with the support of scientific activity to a substantial degree as the President may from time to time determine. The Interdepartmental Committee shall meet whenever the Chairman so determines, but not less than once a month.

(b) The Interdepartmental Committee shall advise and assist the Administrator in gathering and correlating data relating to the scientific research and development activities of the Federal Government; shall study and evaluate such data in relation to the program of the Foundation and the scientific research and development programs of the other Government agencies; and shall make such recommendations to the Foundation and other Government agencies as in the opinion of the Committee will serve to aid in effectuating the objectives of this Act and other legislation providing for Federal support of scientific research and development. The Administrator, in consultation with the Interdepartmental Committee, shall, from time to time, make recommendations to the President for the achievement of maximum effectiveness in the conduct of all federally financed research and development.

MISCELLANEOUS

SEC. 11. (a) To enable the Administrator to carry out his powers and duties, there is hereby authorized to be appropriated annually to the Foundation, out of any money in the Treasury not otherwise appropriated, such sums as may be

necessary to carry out the provisions of this Act. The funds appropriated to the Foundation, as herein authorized, and funds hereafter appropriated to any Government agency for scientific research or development, as herein defined, shall, if obligated during the fiscal year for which appropriated, remain available for expenditure for four years following the expiration of the fiscal year for which appropriated. After such a four-year period, the unexpended balances of appropriations shall be carried to the surplus fund and covered into the Treasury. (b) The materials or equipment purchased by Federal funds or furnished by the Federal Government in connection with research and development activities shall be the property of the United States. The Administrator shall not, however, through the Foundation or its own employees, operate any laboratories, pilot plants, or other such scientific or technical facilities which he may acquire.

(c) In carrying out his functions under this Act, the Administrator is authorized

(1) to prescribe such rules and regulations as he may deem necessary to govern the manner of the operations of the Foundation and its organization and personnel;

(2) to make such expenditures as may be necessary for carrying out the provisions of the Act;

(3) to enter into contracts, or amendments or modifications of contracts, without performance or other bonds, and without regard to section 3709 of the Revised Statutes (U. S. C., title 41, sec. 5) in the case of all contracts which relate to scientific research or development;

(4) to make advance, progress, and other payments which relate to scientific research or development without regard to the provisions of section 3648 of the Revised Statutes (U. S. C., title 31, sec. 529);

(5) to acquire by purchase, or otherwise, hold and dispose of my sale, lease, loan, or otherwise, real and personal property of all kinds necessary for, or resulting from, scientific research or development; and

(6) to prescribe, with the approval of the Comptroller General of the United States, the extent to which vouchers for funds expended under contracts for scientific research and development shall be subject to itemization or substantiation prior to payment, without regard to the limitations of other laws relating to the expenditure of public funds and accounting therefor.

(d) The provisions of the Reorganization Act of 1945 shall be applicable with respect to the Foundation, and with respect to the transfer of agencies and functions to and from the Foundation, without regard to the provisions of section 5 (e) of such Act.

(e) The Office of Scientific Research and Development, and it constituent committees shall be transferred to the Foundation; together with such of the powers, functions, duties, personnel, property, records, funds (including all unexpended balances of appropriations, allocations, or other funds now available), contracts, assets, and liabilities as may be determined by the President. The National Roster of Scientific and Specialized Personnel shall be transferred from the Department of Labor to the Foundation, together with such of the personnel, records, property, and balances of appropriations as have been utilized or are available for use in the administration of such roster as may be determined by the President. The transfers provided for in this subsection shall take effect at such time or times as the President shall direct.

(f) If any provision of this Act, or the application of such provision to any person or circumstance, is held invalid, the remainder of this Act, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

SEC. 12. As used in this Act

DEFINITIONS

(a) "Research and development" means theoretical analysis, exploration, and experimentation in any field of science (including but not limited to the mathematical, physical, biological, medical, engineering, and social sciences), and the extension of investigative findings and theories of a scientific or technical nature into practical application, including the experimental production and testing of models and processes.

(b) "Federally financed research and development" means research and development conducted directly by the Federal Government and all other research and development financed in whole or in part directly by the Federal Government from funds designated for research and development, under a con

tract, grant, or other direct form of financial assistance for research and development.

(c) "Government agency" includes departments, independent agencies and commissions, corporation, and other instrumentalities of the Federal Government.

(d) "Organizations" includes State and local government agencies, corporations, partnerships, nonprofit institutions, and individuals.

(e) "Scholarships and fellowships" means stipends covering tuition and other fees, and such living, travel, and other expenses as the Administrator may determine.

The CHAIRMAN. Mr. Kurt Borchardt of our staff has prepared an analysis of these Foundation bills which will be made a part of the record at this point.

(The analysis above referred to is as follows:)

ANALYSIS OF NATIONAL SCIENCE FOUNDATION BILLS

PRINCIPAL ISSUES

(1) Need for creation of Foundation.

(2) Need and desirability of including social sciences within scope of Foundation.

(3) Form of organization of Foundation.

(4) Need and desirability of including in legislation specific policy provisions with respect to inventions, patended and unpatented, in which Federal Government has some proprietory interest.