,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #egij  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,decemb] #c1 #bjad    
,mr4 ,"y ( ,indiana introduc$ ! foll[+  
bill2 :i* 0 ref]r$ to ! ,committee on   
,en]gy & ,comm]ce1 & 9 addition to !    
,committee on ,ways & ,means1 = a p]iod 
to be subsequ5tly det]m9$ by ! ,speak]1 
9 ea* case = consid]ation ( su*         
provisions z fall )9 ! jurisdiction ( ! 
committee conc]n$  ,a ,,bill  ,to       
au?orize ! ,director ( ! ,national      
,in/itutes ( ,heal? to design & ent]    
into agreem5ts = ! implem5tation ( prize
 competitions ) ! goal ( improv+ heal?  
outcomes & !reby r$uc+ ,f$]al           
exp5ditures4  #a4 ,%ort title ,?is ,act 
may be cit$ z ! ,heal? ,prizes ,rew>d+  
,innovation1 ,sav+s1 & ,effectiv5ess    
,act ( #bjad4  #b4 ,prize competitions  
7a7 ,9 g5]al ,"p ,b ( title ,,iv ( !    
,public ,heal? ,s]vice ,act 7#db        
,u4,s4,c4 #bhd et seq47 is am5d$ by add+
 at ! end ! foll[+3  #dji,k4 ,prize     
competitions = improv+ heal? outcomes & 

r$uc+ ,f$]al exp5ditures  7a7 ,goals ,! 
goal ( ! prize competitions "u ?is      
section is to improve heal? outcomes1   
!reby r$uc+ ,f$]al exp5ditures on heal? 
programs4  7b7 ,initial actions  7#a7   
,id5tification ( diseases & conditions  
,n lat] ?an #f mon?s aft] ! date (      
enactm5t ( ! ,heal? ,prizes ,rew>d+     
,innovation1 ,sav+s1 & ,effectiv5ess    
,act ( #bjad1 ! ,director ( ,,nih1 9    
consultation ) ! ,director ( !          
,congressional ,budget ,(fice1 !        
,adm9i/rator = ! ,c5t]s = ,m$ic>e       
,m$icaid ,s]vices1 & relevant heal?     
economi/s1 %all id5tify #c to #e human  
diseases or heal? conditions ) respect  
to :i*--  7,a7 ! ,f$]al ,gov]nm5t1 = su*
 diseases & conditions1 collectively    
sp5ds a total ( n less ?an              
#e1jjj1jjj1jjj p] ye> on prev5tion &    
treatm5t activities2  7,b7 public &     
private inve/m5t 9 rese>* is            
disproportionately small 9 comp>ison )  
su* inve/m5t = o!r human diseases &     
conditions = :i* ! ,f$]al ,gov]nm5t has 

simil> or great] exp5ditures on         
prev5tion & treatm5t activities2 &  7,c7
 ! prize competitions "u ?is section    
w\ld be appropriate = a*iev+ ! goal     
describ$ 9 subsection 7a74  7#b7 ,design
 ( prize competitions ,n lat] ?an #ab   
mon?s aft] ! date ( enactm5t ( ! ,heal? 
,prizes ,rew>d+ ,innovation1 ,sav+s1 &  
,effectiv5ess ,act ( #bjad1 ! ,director 
( ,,nih %all--  7,a7 design prize       
competitions--  7i7 to coop]ate )       
competitors to realize innovations to   
a*ieve ! goal describ$ 9 subsection 7a7 
) respect to "o or m diseases or        
conditions id5tifi$ pursuant to         
subsection 7b72 &  7ii7 to aw>d "o or m 
prizes--  7,i7 if appropriate1 at !     
beg9n+ ( or dur+ ! competitions1 to !   
competitors ^: innovations are mo/      
promis+ or demon/rate progress2 &       
7,,ii7 at ! end ( ! competitions1 to !  
competitors ^: innovations prove to be !
 be/ solutions2  7,b7 ensure t ! design 
( su* competitions--  7i7 is reali/ic1  
giv5 ! am\nt ( funds to be aw>d$ z      

prizes2  7ii7 does n reflect any bias   
conc]n+ ! type ( innovations :i* w prove
 to be ! be/ solutions2  7iii7 all[s any
 p]son to p>ticipate z a competitor )\t 
reg>d to ! p]son's place (              
incorporation1 prim>y place ( bus9ess1  
citiz5%ip1 & resid5cy1 z applicable2 &  
7iv7 addresses areas ( unmet ne$ ) reg>d
 to a lack ( rec5t & p5d+ innovations2 &
  7,c7 submit to ! ,congress a report on
 ! design ( su* competitions4  7#c7     
,consultation ,9 c>ry+ out p>agraphs    
7#a7 & 7#b71 ! ,director ( ,,nih %all   
consult )--  7,a7 m$ical1 economic1     
budget>y1 innovation1 & v5ture capital  
exp]ts2 &  7,b7 ! heads ( relevant      
,f$]al ag5cies1 includ+ ! ,commission] (
 ,food & ,drugs1 ! ,director ( !        
,national ,sci5ce ,f\ndation1 & !       
,adm9i/rator ( ! ,small ,bus9ess        
,adm9i/ration4  7c7 ,simulation ,!      
,director ( ,,nih %all--  7#a7 n lat]   
?an #ad mon?s aft] ! date ( enactm5t ( !
 ,heal? ,prizes ,rew>d+ ,innovation1    
,sav+s1 & ,effectiv5ess ,act ( #bjad1   

aw>d "o or m contracts--  7,a7 to p]=m a
 simulation ( ! prize competitions to be
 conduct$ "u ?is section1 bas$ on !     
designs develop$ "u subsection 7b77#b7 &
 9 consultation ) ! categories ( exp]ts 
& ag5cy heads describ$ 9 subsection     
7b77#c72 &  7,b7 to use ! simulation to 
assess ! effectiv5ess ( ! design2 &     
7#b7 n lat] ?an #d mon?s aft] aw>d+ su* 
"o or m contracts1 submit to ! ,congress
 a report on ! results ( ! simulation & 
assessm5t4  7d7 ,adju/m5ts to design ,n 
lat] ?an #ba mon?s aft] ! date (        
enactm5t ( ! ,heal? ,prizes ,rew>d+     
,innovation1 ,sav+s1 & ,effectiv5ess    
,act ( #bjad1 ! ,director ( ,,nih %all--
  7#a7 tak+ into consid]ation ! results 
( ! simulation "u subsection 7c71 &     
subject to ! requirem5ts ( subp>agraphs 
7,a7 & 7,b7 ( subsection 7b77#b71 make  
su* adju/m5ts to ! design ( ! prize     
competitions "u ?is section z !         
,director det]m9es appropriate2 &  7#b7 
submit to ! ,congress a report on any   
su* adju/m5ts4  7e7 ,implem5tation (    

prize competitions  7#a7 ,9 g5]al ,!    
,director ( ,,nih %all ent] into an     
agreem5t ) "o or m private entities to  
implem5t prize competitions bas$ on !   
designs develop$ "u subsection 7b77#b71 
z adju/$ "u subsection 7d74  7#b7       
,duration ,! prize competitions "u      
p>agraph 7#a7 %all require competitors  
to demon/rate ! effectiv5ess ( _!       
innovations ov] a p]iod ( n m ?an #e    
ye>s4  7#c7 ,guidance & access to te/+  
facilities ,! ,secret>y & ! ,commission]
 ( ,food & ,drugs may coop]ate )        
qualifi$ competitors 9 ! prize          
competitions "u p>agraph 7#a7 by provid+
 guidance & access to te/+ facilities4  
7#d7 ,numb] ( ,prize ,competitions ,!   
,director %all conduct--  7,a7 a total (
 n m ?an #e prize competitions "u ?is   
section2 &  7,b7 n m ?an #b su* prize   
competitions ) respect to any disease or
 condition4  7f7 ,track+2 report+ ,!    
,director ( ,,nih %all--  7#a7 collect  
in=mation on--  7,a7 ! m$ical efficacy (
 innovations fund$ ?r\gh ! prize        

competitions "u subsection 7e72 &  7,b7 
! actual & pot5tial effect ( !          
innovations on ,f$]al exp5ditures2 &    
7#b7 n lat] ?an "o ye> aft] ! conclusion
 ( ! prize competitions "u subsection   
7e71 & n lat] ?an ! end ( ea* ( ! #d    
succe$+ ye>s1 submit to ! ,congress a   
report on ! in=mation collect$ "u       
p>agraph 7#a74  7g7 ,intellectual       
prop]ty  7#a7 ,prohibition on ! gov]nm5t
 acquir+ intellectual prop]ty rights ,! 
,f$]al ,gov]nm5t may n ga9 an int]e/ 9  
intellectual prop]ty develop$ by a      
p>ticipant 9 a prize competition "u     
subsection 7e7 )\t ! writt5 cons5t ( !  
p>ticipant4  7#b7 ,lic5ses ,! ,f$]al    
,gov]nm5t may negotiate a lic5se = ! use
 ( intellectual prop]ty develop$ by a   
p>ticipant 9 a prize competition "u     
subsection 7e74  7h7 ,au?orization (    
appropriations  7#a7 ,9 g5]al ,to c>ry  
out ?is section1 9 lieu ( am\nts        
au?oriz$ to be appropriat$ by section   
#djb;,a1 !re are au?oriz$ to be         
appropriat$ #ej1jjj1jjj4  7#b7 ,m9imum  

p]c5tage = prizes ,( ! total assi/ance  
aw>d$ to private entities "u subsection 
7e7 7includ+ 9-k9d contributions & te/+ 
or o!r te*nical support7 to implem5t any
 prize competition "u ?is section--     
7,a7 n m ?an #cj p]c5t ( su* assi/ance  
%all be = adm9i/ration ( ! prize        
competition2 &  7,b7 n less ?an #gj     
p]c5t ( su* assi/ance %all be aw>d$ z   
prizes to competitors 9 ! prize         
competition4  4  7b7 ,prizes exclud$ f  
gross income ( recipi5ts  7#a7 ,9 g5]al 
,section #gd ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new subsection3  7d7 ,c]ta9      
prizes = improv+ heal? outcomes ,gross  
income %all n include ! value ( any     
prize receiv$ by ! taxpay] pursuant to a
 prize competition "u section #dji,k ( !
 ,public ,heal? ,s]vice ,act 7z 9 effect
 imm$iately aft] ! enactm5t ( ?is       
subsection74  4  7#b7 ,effective date ,!
 am5dm5t made by ?is subsection %all    
apply to taxable ye>s end+ aft] ! date (
 ! enactm5t ( ?is ,act4