,i #aacth ,,congress #b;d ,session ,h4 ,r4 #egij ,,in ,,the ,,house ,,of ,,representatives ,december #c1 #bjad ,mr4 ,young of ,indiana introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to authorize the ,director of the ,national ,institutes of ,health to design and enter into agreements for the implementation of prize competitions with the goal of improving health outcomes and thereby reducing ,federal expenditures4 #a4 ,short title ,this ,act may be cited as the ,health ,prizes ,rewarding ,innovation1 ,savings1 and ,effectiveness ,act of #bjad4 #b4 ,prize competitions 7a7 ,in general ,part ,b of title ,,iv of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bhd et seq47 is amended by adding at the end the following3 #dji,k4 ,prize competitions for improving health outcomes and reducing ,federal expenditures 7a7 ,goals ,the goal of the prize competitions under this section is to improve health outcomes1 thereby reducing ,federal expenditures on health programs4 7b7 ,initial actions 7#a7 ,identification of diseases and conditions ,not later than #f months after the date of enactment of the ,health ,prizes ,rewarding ,innovation1 ,savings1 and ,effectiveness ,act of #bjad1 the ,director of ,,nih1 in consultation with the ,director of the ,congressional ,budget ,office1 the ,administrator for the ,centers for ,medicare ,medicaid ,services1 and relevant health economists1 shall identify #c to #e human diseases or health conditions with respect to which-- 7,a7 the ,federal ,government1 for such diseases and conditions1 collectively spends a total of not less than #e1jjj1jjj1jjj per year on prevention and treatment activities2 7,b7 public and private investment in research is disproportionately small in comparison with such investment for other human diseases and conditions for which the ,federal ,government has similar or greater expenditures on prevention and treatment activities2 and 7,c7 the prize competitions under this section would be appropriate for achieving the goal described in subsection 7a74 7#b7 ,design of prize competitions ,not later than #ab months after the date of enactment of the ,health ,prizes ,rewarding ,innovation1 ,savings1 and ,effectiveness ,act of #bjad1 the ,director of ,,nih shall-- 7,a7 design prize competitions-- 7i7 to cooperate with competitors to realize innovations to achieve the goal described in subsection 7a7 with respect to one or more diseases or conditions identified pursuant to subsection 7b72 and 7ii7 to award one or more prizes-- 7,i7 if appropriate1 at the beginning of or during the competitions1 to the competitors whose innovations are most promising or demonstrate progress2 and 7,,ii7 at the end of the competitions1 to the competitors whose innovations prove to be the best solutions2 7,b7 ensure that the design of such competitions-- 7i7 is realistic1 given the amount of funds to be awarded as prizes2 7ii7 does not reflect any bias concerning the type of innovations which will prove to be the best solutions2 7iii7 allows any person to participate as a competitor without regard to the person's place of incorporation1 primary place of business1 citizenship1 and residency1 as applicable2 and 7iv7 addresses areas of unmet need with regard to a lack of recent and pending innovations2 and 7,c7 submit to the ,congress a report on the design of such competitions4 7#c7 ,consultation ,in carrying out paragraphs 7#a7 and 7#b71 the ,director of ,,nih shall consult with-- 7,a7 medical1 economic1 budgetary1 innovation1 and venture capital experts2 and 7,b7 the heads of relevant ,federal agencies1 including the ,commissioner of ,food and ,drugs1 the ,director of the ,national ,science ,foundation1 and the ,administrator of the ,small ,business ,administration4 7c7 ,simulation ,the ,director of ,,nih shall-- 7#a7 not later than #ad months after the date of enactment of the ,health ,prizes ,rewarding ,innovation1 ,savings1 and ,effectiveness ,act of #bjad1 award one or more contracts-- 7,a7 to perform a simulation of the prize competitions to be conducted under this section1 based on the designs developed under subsection 7b77#b7 and in consultation with the categories of experts and agency heads described in subsection 7b77#c72 and 7,b7 to use the simulation to assess the effectiveness of the design2 and 7#b7 not later than #d months after awarding such one or more contracts1 submit to the ,congress a report on the results of the simulation and assessment4 7d7 ,adjustments to design ,not later than #ba months after the date of enactment of the ,health ,prizes ,rewarding ,innovation1 ,savings1 and ,effectiveness ,act of #bjad1 the ,director of ,,nih shall-- 7#a7 taking into consideration the results of the simulation under subsection 7c71 and subject to the requirements of subparagraphs 7,a7 and 7,b7 of subsection 7b77#b71 make such adjustments to the design of the prize competitions under this section as the ,director determines appropriate2 and 7#b7 submit to the ,congress a report on any such adjustments4 7e7 ,implementation of prize competitions 7#a7 ,in general ,the ,director of ,,nih shall enter into an agreement with one or more private entities to implement prize competitions based on the designs developed under subsection 7b77#b71 as adjusted under subsection 7d74 7#b7 ,duration ,the prize competitions under paragraph 7#a7 shall require competitors to demonstrate the effectiveness of their innovations over a period of not more than #e years4 7#c7 ,guidance and access to testing facilities ,the ,secretary and the ,commissioner of ,food and ,drugs may cooperate with qualified competitors in the prize competitions under paragraph 7#a7 by providing guidance and access to testing facilities4 7#d7 ,number of ,prize ,competitions ,the ,director shall conduct-- 7,a7 a total of not more than #e prize competitions under this section2 and 7,b7 not more than #b such prize competitions with respect to any disease or condition4 7f7 ,tracking2 reporting ,the ,director of ,,nih shall-- 7#a7 collect information on-- 7,a7 the medical efficacy of innovations funded through the prize competitions under subsection 7e72 and 7,b7 the actual and potential effect of the innovations on ,federal expenditures2 and 7#b7 not later than one year after the conclusion of the prize competitions under subsection 7e71 and not later than the end of each of the #d succeeding years1 submit to the ,congress a report on the information collected under paragraph 7#a74 7g7 ,intellectual property 7#a7 ,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 under subsection 7e7 without the written consent of the participant4 7#b7 ,licenses ,the ,federal ,government may negotiate a license for the use of intellectual property developed by a participant in a prize competition under subsection 7e74 7h7 ,authorization of appropriations 7#a7 ,in general ,to carry out this section1 in lieu of amounts authorized to be appropriated by section #djb;,a1 there are authorized to be appropriated #ej1jjj1jjj4 7#b7 ,minimum percentage for prizes ,of the total assistance awarded to private entities under subsection 7e7 7including in-kind contributions and testing or other technical support7 to implement any prize competition under this section-- 7,a7 not more than #cj percent of such assistance shall be for administration of the prize competition2 and 7,b7 not less than #gj percent of such assistance shall be awarded as prizes to competitors in the prize competition4 4 7b7 ,prizes excluded from gross income of recipients 7#a7 ,in general ,section #gd of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7d7 ,certain prizes for improving health outcomes ,gross income shall not include the value of any prize received by the taxpayer pursuant to a prize competition under section #dji,k of the ,public ,health ,service ,act 7as in effect immediately after the enactment of this subsection74 4 7#b7 ,effective date ,the amendment made by this subsection shall apply to taxable years ending after the date of the enactment of this ,act4