[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 820 Committee Discharged Senate (CDS)]
103d CONGRESS
2d Session
H. R. 820
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 24 (legislative day, April 19), 1993
Received; read twice and referred to the Committee on Commerce,
Science, and Transportation
March 16 (legislative day, February 22), 1994
Committee discharged
_______________________________________________________________________
AN ACT
To amend the Stevenson-Wydler Technology Innovation Act of 1980 to
enhance manufacturing technology development and transfer, to authorize
appropriations for the Technology Administration of the Department of
Commerce, including the National Institute of Standards and Technology,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I--GENERAL PROVISIONS
SEC. 101. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``National
Competitiveness Act of 1993''.
(b) Table of Contents.--
TITLE I--GENERAL PROVISIONS
Sec. 101. Short title; table of contents.
Sec. 102. Findings.
Sec. 103. Purposes.
Sec. 104. Definitions.
TITLE II--MANUFACTURING
Subtitle A--Manufacturing Technology and Extension
Sec. 201. Short title.
Sec. 202. Findings, purpose, and statement of policy.
Sec. 203. Role of the Department of Commerce.
Sec. 204. National Technology Outreach Program.
Sec. 205. Advanced Manufacturing Technology Development Program.
Sec. 206. Miscellaneous and conforming amendments.
Sec. 207. Manufacturing Technology Centers.
Sec. 208. State Technology Extension Program.
Subtitle B--National Science Foundation Manufacturing Programs
Sec. 211. Role of the National Science Foundation in manufacturing.
Sec. 212. Engineering and Cooperative Research Centers.
Sec. 213. Manufacturing traineeships and fellowships.
Sec. 214. Total quality management.
TITLE III--CRITICAL TECHNOLOGIES
Subtitle A--Benchmarking Science and Technology
Sec. 301. Benchmarking United States science and technology against
foreign capabilities.
Subtitle B--Advanced Technology Program
Sec. 321. Development of program plan.
Sec. 322. Large scale research and development consortia.
Sec. 323. Technical amendments.
Sec. 324. Country qualification notice.
Sec. 325. Recoupment.
Subtitle C--Civilian Technology Loan Program
Sec. 331. Loan and loan guarantee authority.
Sec. 332. Operating plan and effective date.
Sec. 333. Terms and conditions.
Sec. 334. Technical assistance for lenders and borrowers.
Sec. 335. Outreach to economically depressed areas.
Sec. 336. Socially and economically disadvantaged individuals.
Sec. 337. Definitions.
Subtitle D--Civilian Technology Development Program
Sec. 341. Short title.
Sec. 342. Definitions.
Sec. 343. Establishment and purpose.
Sec. 344. Advisory Committee.
Sec. 345. Organization and licensing.
Sec. 346. Capital and management requirements.
Sec. 347. Financing for licensees.
Sec. 348. Issuance and guarantee of trust certificates.
Sec. 349. Venture capital for qualified business concerns.
Sec. 350. Operation.
Sec. 351. Regulations; liability.
Sec. 352. Technical assistance for licensees and qualified business
concerns.
Sec. 353. Performance measures; Annual report.
Sec. 354. Reports, investigations, and examinations.
Sec. 355. Revocation and suspension of licenses; cease and desist
orders.
Sec. 356. Injunctive relief.
Sec. 357. Conflicts of interest.
Sec. 358. Removal or suspension of directors and officers.
Sec. 359. Violations.
Sec. 360. Civil penalties.
Sec. 361. Antitrust savings clause.
TITLE IV--MISCELLANEOUS
Sec. 401. Department of Commerce Technology Advisory Board.
Sec. 402. International standardization.
Sec. 403. Malcolm Baldrige Award amendments.
Sec. 404. Cooperative research and development agreements.
Sec. 405. Competitiveness assessments and evaluations.
Sec. 406. Study of semiconductor lithography technologies.
Sec. 407. American workforce quality partnerships.
Sec. 408. Severability.
Sec. 409. Sunset.
Sec. 410. Use of domestic products.
Sec. 411. National Quality Program.
Sec. 412. Definitions.
Sec. 413. Fastener Quality Act amendments.
TITLE V--AUTHORIZATIONS OF APPROPRIATIONS
Sec. 501. Technology Administration.
Sec. 502. National Institute of Standards and Technology.
Sec. 503. Additional activities of the Technology Administration.
Sec. 504. National Science Foundation.
Sec. 505. Availability of appropriations.
Sec. 506. Prohibitions.
SEC. 102. FINDINGS.
The Congress finds that--
(1) the creation, development, and adoption of advanced
technologies are significant determinants of sustainable
economic growth, productivity improvement, and competitive
standing;
(2) over the last decade, the rate of advanced technology
adoption in the United States has been about half that of some
prominent foreign nations and has contributed to a relative
decline in United States industrial competitiveness;
(3) maintaining a highly competitive manufacturing base in
the United States is essential for economic prosperity and
national welfare and requires continuous development and
adoption of advanced manufacturing technologies that will
enable United States manufacturers to develop innovative
products rapidly and manufacture goods of the highest quality
at competitive prices;
(4) there is general agreement on which fields of
technology are critical for economic competitiveness through
the first decade of the next century, but the United States
Government must pursue a comprehensive strategy to ensure that
the appropriate research, development, and applications
activities and other reforms occur so these technologies are
readily available to United States manufacturers for
incorporation into products made in the United States;
(5) technology-based products of the twenty-first century
must be developed incorporating the values of sustainable
development, including low energy and material use, safety,
recyclability, and minimal pollution;
(6) the cost of and difficulty in obtaining investment
capital for small high technology companies are significant
deterrents to their formation, development, and growth;
(7) standardization of weights and measures, including
development and promotion of product and quality standards, has
a significant role to play in competitiveness;
(8) strategic technology planning for sustainable economic
growth, the support of critical civilian technology research,
development, and application, and advancement of manufacturing
technology research, development, and adoption are appropriate
Government roles; and
(9) programs established under this Act, and the amendments
made by this Act, shall be funded as a result of shifting the
total Federal investment in research and development to achieve
a balance between support for defense and civilian activities,
and shall not be financed through additional deficit spending.
SEC. 103. PURPOSES.
The purposes of this Act are to--
(1) promote and facilitate the creation, development, and
adoption of technologies by United States companies throughout
the Nation that will contribute significantly to United States
competitiveness, employment, and sustainable economic growth;
(2) improve the competitiveness of United States
manufacturers, particularly small businesses, by developing a
nationwide technology outreach program to improve access to
information, expertise, technology, and management practices
required to compete throughout the world;
(3) promote the development and rapid application of
advanced manufacturing technologies and processes by United
States manufacturers, with emphasis on environmentally sound
practices and sustainable economic growth;
(4) stimulate long-term investment in United States
companies engaged in development or utilization of critical or
other advanced technologies;
(5) establish mechanisms to ensure synergistic linkages
between Federal, State, and local initiatives aimed at
enhancing the competitiveness of United States companies;
(6) enhance and expand the core programs of the National
Institute of Standards and Technology, including the Advanced
Technology Program;
(7) monitor and assess foreign technology capabilities
relative to those of the United States in order to assist
United States companies and policymakers in identifying and
responding to competitive opportunities and challenges; and
(8) facilitate cooperation among Federal agencies with the
goal of achieving an integrated national effort to improve
United States competitiveness, employment, and sustainable
growth.
SEC. 104. DEFINITIONS.
For purposes of this Act--
(1) the term ``advanced manufacturing technology'' has the
meaning given such term in section 4 of the Stevenson-Wydler
Technology Innovation Act of 1980, as amended by section 206(a)
of this Act;
(2) the term ``critical technologies'' means technologies
identified as critical technologies pursuant to section 603(d)
of the National Science and Technology Policy, Organization,
and Priorities Act of 1976 (42 U.S.C. 6683(d));
(3) the term ``Director'' means the Director of the
Institute;
(4) the term ``Institute'' means the National Institute of
Standards and Technology;
(5) the term ``modern technology'' has the meaning given
such term in section 4 of the Stevenson-Wydler Technology
Innovation Act of 1980, as amended by section 206(a) of this
Act;
(6) the term ``Secretary'' means the Secretary of Commerce;
(7) the term ``small business'' means a United States
company that is a small business within the meaning given such
term in the Small Business Act;
(8) the term ``sustainable economic growth'' has the
meaning given such term in section 4 of the Stevenson-Wydler
Technology Innovation Act of 1980, as amended by section 206(a)
of this Act;
(9) the term ``State'' means each of the several States,
the District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other territory or possession
of the United States;
(10) the term ``United States'' means the several States,
the District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other territory or possession
of the United States;
(11) the term ``United States company'' has the meaning
given such term in section (4) of the Stevenson-Wydler
Technology Innovation Act of 1980, as amended by section 206(a)
of this Act;
(12) the term ``United States manufacturer'' has the
meaning given such term in section 4 of the Stevenson-Wydler
Technology Innovation Act of 1980, as amended by section 206(a)
of this Act; and
(13) the term ``Under Secretary'' means the Under Secretary
of Commerce for Technology.
TITLE II--MANUFACTURING
Subtitle A--Manufacturing Technology and Extension
SEC. 201. SHORT TITLE.
This subtitle may be cited as the ``Manufacturing Technology and
Extension Act of 1993''.
SEC. 202. FINDINGS, PURPOSE, AND STATEMENT OF POLICY.
The Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3701 et seq.) is amended by adding at the end the following new title:
``TITLE III--MANUFACTURING TECHNOLOGY
``SEC. 301. FINDINGS, PURPOSE, AND STATEMENT OF POLICY.
``(a) Findings.--Congress finds and declares the following:
``(1) United States manufacturers, especially small
businesses, require the adoption and implementation of both
modern and advanced manufacturing and process technologies to
meet the challenge of foreign competition.
``(2) The development and application of modern and
advanced manufacturing technologies are vital to the
sustainable economic growth, standard of living,
competitiveness in world markets, and national security and
welfare of the United States.
``(3) New developments in flexible, computer-integrated
manufacturing, electronic manufacturing communications
networks, and other new technologies make possible dramatic
improvements across all industrial sectors in productivity,
quality, and the speed with which United States manufacturers
can respond to changing market opportunities.
``(4) The application of advances in computer science and
technology to manufacturing is also vital to the Nation's
prosperity, national and economic security, industrial
production, engineering, and scientific advancement.
``(5) The Department of Commerce's Technology
Administration, along with other Federal agencies, can continue
to play an important role in assisting United States companies
to develop, test, and adopt modern and advanced manufacturing
technologies and in establishing high-performance computing
technology testbeds to develop, refine, test, and transfer
advanced manufacturing and networking technologies and
associated applications.
``(b) Purpose.--It is the purpose of this title to contribute to
the competitiveness of the United States by enhancing the Department of
Commerce's technology programs to--
``(1) provide United States manufacturers, especially small
businesses, with ready access to high quality advice and
assistance in the development, adoption, and improvement of
modern manufacturing processes and technology, and in solving
their specific technology-based problems; and
``(2) encourage, facilitate, and support the development
and adoption of advanced manufacturing principles and
technologies by United States manufacturers.
``(c) Statement of Policy.--Congress declares that it is the policy
of the United States that--
``(1) Federal agencies, particularly the Department of
Commerce, shall work with United States manufacturers, labor,
and the States to ensure that the United States is second to no
other nation in the development, adoption, and use of modern
and advanced manufacturing technology;
``(2) the Department of Commerce shall work with all the
major Federal research and development agencies to encourage
the development and adoption, by United States manufacturers,
of advanced manufacturing technologies, and shall work closely
with United States manufacturers and labor, and with the
Nation's universities, to develop and test those technologies;
and
``(3) the Department of Commerce shall place a high
priority on the establishment and growth of a National
Technology Outreach Program to promote and facilitate the
development and use by United States manufacturers of modern
and advanced manufacturing systems and applications for
manufacturing.
``(d) Construction.--Nothing in this title shall be construed as
modifying the duties and responsibilities of the Department of Energy
with regard to its technology resources and expertise in matters under
its jurisdiction.''.
SEC. 203. ROLE OF THE DEPARTMENT OF COMMERCE.
Title III of the Stevenson-Wydler Technology Innovation Act of
1980, as added by section 202 of this Act, is further amended by adding
at the end the following new section:
``SEC. 302. ROLE OF THE DEPARTMENT OF COMMERCE.
``(a) Department of Commerce.--Consistent with the purposes and
policies of section 301, the Department of Commerce shall have primary
responsibility in the Federal Government in working with United States
manufacturers and labor and the States to develop advanced
manufacturing technologies and to promote and assist the adoption and
use of modern and advanced manufacturing technologies, practices, and
management techniques throughout the United States. In carrying out
this title, the Secretary, acting, as appropriate, through the Under
Secretary and the Director, shall--
``(1) consult and cooperate with other Federal agencies,
including the Department of Defense, the Department of Energy,
and the National Aeronautics and Space Administration to ensure
consistent and, where possible, coordinated efforts to promote
the development and adoption of modern and advanced
manufacturing technologies;
``(2) assist the Office of Science and Technology Policy in
its efforts to coordinate the manufacturing technology
activities of the various Federal agencies; and
``(3) work with representatives of Federal, State, and
local agencies, manufacturing extension programs, private
industry, industry groups, worker organizations, and academia
to encourage and facilitate the use of both advanced
manufacturing technologies, including those developed by the
Advanced Manufacturing Technology Development Program
established under section 304 of this Act, and modern
manufacturing technologies and practices to United States
manufacturers.
The Secretary shall annually report to Congress on actions taken under
this subsection.
``(b) Other Federal Agencies.--To the extent permitted by other
law, other Federal agencies shall cooperate with the Secretary in
carrying out this title.''.
SEC. 204. NATIONAL TECHNOLOGY OUTREACH PROGRAM.
Title III of the Stevenson-Wydler Technology Innovation Act of
1980, as added by sections 202 and 203 of this Act, is further amended
by adding at the end the following new section:
``SEC. 303. NATIONAL TECHNOLOGY OUTREACH PROGRAM.
``(a) Establishment and Purpose.--There is hereby established a
National Technology Outreach Program (in this section referred to as
the `Outreach Program'), the purpose of which shall be to--
``(1) interconnect, programmatically and electronically,
the Nation's technology and manufacturing extension centers,
programs, and activities;
``(2) improve the competitiveness of United States
manufacturers and create jobs located in the United States; and
``(3) assist United States manufacturers, especially small
businesses, to expand and accelerate the use of cost-effective
modern manufacturing technologies and practices and to develop
and adopt advanced manufacturing technologies. The Secretary,
acting through the Under Secretary and the Director, shall
implement and coordinate the Outreach Program in accordance
with an initial plan and a 5-year plan for the Outreach
Program, to be submitted to the Congress under subsection (g).
``(b) Program Components.--The Outreach Program shall constitute a
partnership between the Department of Commerce, the States, the private
sector, and, as appropriate, shall include other Federal agencies to
provide a national system of manufacturing and technology extension
centers and technical services to United States manufacturers,
particularly small businesses. The Outreach Program shall include--
``(1) Manufacturing Outreach Centers established under
subsection (c);
``(2) Regional Centers for the Transfer of Manufacturing
Technology established under section 25 of the National
Institute of Standards and Technology Act (15 U.S.C. 278k);
``(3) the State Technology Extension Program established
under section 26 of the National Institute of Standards and
Technology Act (15 U.S.C. 278l);
``(4) the Outreach Program Information Network and the
Clearinghouse established under subsections (d) and (e) of this
section, respectively; and
``(5) other technology and manufacturing extension centers
and activities supported by Federal, State, or local agencies
which could contribute to the goals of this title and that the
Secretary considers appropriate for inclusion in the Outreach
Program.
``(c) Manufacturing Outreach Centers.--(1) Eligible government and
private sector organizations that are engaged in technology or
manufacturing extension activities may apply to the Secretary for
designation as Manufacturing Outreach Centers, in such form and manner
as the Secretary may prescribe. Eligible organizations include Federal,
State, and local government agencies, extension programs, universities,
and laboratories; small business development centers; and professional
societies, worker organizations, industrial organizations, nonprofit
organizations, community development organizations, community colleges,
and technical schools and colleges.
``(2) The Secretary shall establish standards, consistent with the
requirements of subsection (f), for designation of existing technology
or manufacturing extension programs and for qualification of start-up
programs as Manufacturing Outreach Centers.
``(3) The Secretary may, through a competitive process, make
grants, subject to the availability of appropriations, to Manufacturing
Outreach Centers designated in accordance with the standards
established under paragraph (2), to enable them to fulfill the purposes
and perform the activities of the Outreach Program. If a State plan for
technology extension exists in a State where an applicant for a grant
under this paragraph is operating or plans to operate, the proposer
shall demonstrate in its application that its proposal is compatible
with such State plan. The purpose of such grants is to upgrade the
overall quality of the Outreach Program and to contribute to the goal
of ready availability of the services and information provided through
the Outreach Program, including information on modern and advanced
manufacturing technology, to all interested United States
manufacturers. Such grants shall be awarded to increase the
capabilities and capacity of Manufacturing Outreach Centers.
Manufacturing Outreach Centers may not concurrently receive financial
assistance under section 25 of the National Institute of Standards and
Technology Act and grants under this paragraph. Grants may be awarded
under this paragraph for an initial period not to exceed 3 years and
may be renewed for one additional period, not to exceed 2 years. Such
grants may not at any time exceed 50 percent of the operating costs and
in-kind contributions of the grant recipient.
``(4) In selecting applicants to participate in the Outreach
Program and in making grants under paragraph (3), the Secretary shall
solicit and consider evaluations of the applicant's performance record
and current capabilities, and the potential usefulness of the
applicant's proposal, from United States manufacturers that the
Secretary considers qualified to make such evaluations.
``(d) Outreach Program Information Network.--(1) The Department of
Commerce shall provide for an instantaneous, interactive electronic
communications network (in this section referred to as the `outreach
network') to serve the Outreach Program, to facilitate effective and
efficient interaction within it, and to permit the collection and
dissemination in electronic form, in a timely and accurate manner, of
information described in subsection (e). The outreach network shall,
wherever practicable, make use of existing public and private computer
networks, data bases, and electronic bulletin boards. The design,
configuration, acquisition plan, and operating policies, including user
fees and appropriate electronic access for public and private
information suppliers and users, of the outreach network shall be
included in the 5-year plan prepared under subsection (g)(2) and shall
address--
``(A) effective mechanisms for providing operating funds
for the maintenance and use of the outreach network established
under this paragraph, including user fees, industry support,
and continued Federal investment;
``(B) the future operation and evolution of the outreach
network, including its relationship with other public or
private information services;
``(C) how to protect the copyrights of material distributed
over the outreach network; and
``(D) appropriate policies--
``(i) to ensure the security of proprietary
information that might be available on the outreach
network and to protect the privacy of users of the
outreach network; and
``(ii) to facilitate and limit access to the
outreach network and its information to member
organizations of the Outreach Program and to United
States companies, State and local governments, United
States universities and colleges, and United States
nonprofit organizations that the Secretary deems
appropriate.
``(2) Except as provided in this section, the outreach network
established under paragraph (1) shall be designed and configured in a
manner that will enable interoperability with networks and technologies
developed under the National High-Performance Computing Program
described in section 101 of the High-Performance Computing Act of 1991
(15 U.S.C. 5511). The Secretary shall also, as appropriate, coordinate
activities under this subsection with the relevant activities of other
Federal agencies, particularly the agile manufacturing/enterprise
integration activities of the Department of Defense.
``(e) Clearinghouse.--(1) The Secretary shall develop a
clearinghouse system, using existing public and private sector
information providers and carriers where appropriate, to--
``(A) identify expertise and acquire information,
appropriate to the purpose of the Outreach Program stated in
subsection (a), from all appropriate Federal sources, and where
appropriate from other sources, providing assistance where
necessary in making such information electronically available
through and compatible with the outreach network;
``(B) ensure ready access, through the outreach network, by
United States companies, Federal agencies, State and local
governments, United States universities and colleges, United
States nonprofit organizations that the Secretary deems
appropriate, and member organizations of the Outreach Program,
to the most recent relevant available information and
expertise;
``(C) ensure that common standards of interconnection are
utilized by the outreach network and the clearinghouse to allow
maximum interoperability and usership; and
``(D) to the extent practicable, inform United States
manufacturers of the availability of such information.
``(2) The clearinghouse shall include information available
electronically on--
``(A) activities of Manufacturing Outreach Centers,
Regional Centers for the Transfer of Manufacturing Technology,
the State Technology Extension Program, and the users of the
outreach network;
``(B) domestic and international standards and other export
promotion information, including conformity assessment
requirements and procedures;
``(C) the Malcolm Baldrige Quality program, and quality
principles and standards;
``(D) manufacturing processes minimizing waste and negative
environmental impact;
``(E) federally funded technology development and transfer
programs;
``(F) how to access data bases and services; and
``(G) skills training, particularly the implementation and
use of modern and advanced manufacturing techniques.
``(3) The Secretary, acting through the Under Secretary, may
convene a national conference to develop recommendations for common
standards for interconnection and for improved dissemination to users
of the clearinghouse of information on domestic and international
technical regulations and standards, and on conformity assessment
procedures, including draft standards and regulations. Invited
participants are to include a broad cross section of the standards,
accreditation, and user communities.
``(f) Additional Requirements.--In carrying out this section, the
Secretary shall satisfy the following requirements:
``(1) The Outreach Program and the outreach network shall
be established and operated through cooperation and cofunding
among Federal, State, and local governments, other public and
private contributors, and end users that the Secretary
determines are appropriate for providing maximum benefit to
United States manufacturers.
``(2) The Outreach Program and the outreach network shall
utilize and leverage, to the extent practicable, existing
organizations, data bases, electronic networks, facilities,
capabilities, and existing standards for interconnection, and
shall be designed to complement rather than supplant State and
local programs.
``(3) The Outreach Program and the outreach network shall
be subject to all applicable provisions of law for the
protection of trade secrets and business confidential
information.
``(4) Access to the services available through the Outreach
Program and information available through the outreach network
servicing the Outreach Program shall be limited, as
appropriate, to United States companies, State and local
governments, United States universities and colleges, and
United States nonprofit organizations that the Secretary deems
appropriate.
``(5) Local or regional needs should determine the
management structure and staffing of the Manufacturing Outreach
Centers. The Outreach Program shall strive for geographical
balance with the ultimate goal of access for all United States
manufacturers.
``(6) Manufacturing Outreach Centers should have the
capability to deliver outreach services directly to United
States manufacturers, actively work with, rather than supplant,
the private sector, and to the extent practicable, maximize the
exposure of United States manufacturers to demonstrations of
modern technologies in use, including flexible manufacturing
practices.
``(7) The Department of Commerce shall develop mechanisms
for--
``(A) soliciting the perspectives of United States
manufacturers using the services of the Manufacturing
Outreach Centers and Regional Centers for the Transfer
of Manufacturing Technology; and
``(B) evaluating the effectiveness of the
Manufacturing Outreach Centers and Regional Centers for
the Transfer of Manufacturing Technology.
``(g) Plan and Reports.--(1) Within 6 months after the date of
enactment of this title, the Secretary, after consultation with the
Under Secretary, the Director, the Department of Commerce Technology
Advisory Board, other appropriate Federal agencies, and a cross-section
of potential participants in the Outreach Program, shall submit an
initial plan for the implementation of this title to Congress--
``(A) describing how the Secretary will carry out the
responsibility to create, operate, and support the Outreach
Program and the outreach network, including the interactive
electronic linkage of Manufacturing Outreach Centers to the
programs of the Technology Administration and other appropriate
Federal, State, and local agencies;
``(B) establishing criteria and procedures, consistent with
the requirements of this title, for--
``(i) the selection of organizations to receive
Department of Commerce services or financial assistance
as part of the Outreach Program, including
qualifications and training of technology extension
agents;
``(ii) access to services provided by participants
in the Outreach Program and to information available
through the outreach network servicing the Outreach
Program; and
``(iii) the annual evaluation of the Outreach
Program in achieving the purposes of this title; and
``(C) evaluating the need for and the benefits of a
National Conference of States on Technology Extension, similar
in structure to the National Conference on Weights and
Measures, and, if the Secretary determines that such a
Conference is advisable, developing, in consultation with the
States and other interested parties, a plan for the
establishment, operation, funding, and evaluation of such a
Conference.
``(2) Within 1 year after the date of enactment of this title, the
Secretary, in consultation with the Under Secretary, the Director, and
the Department of Commerce Technology Advisory Board, shall prepare and
submit to the Congress a 5-year plan for implementing the Outreach
Program and the outreach network and clearinghouse established under
subsections (d) and (e), respectively. Such 5-year plan shall identify
appropriate methods for expanding the Outreach Program in a
geographically balanced manner. Such 5-year plan shall include a
detailed implementation plan and cost estimates and shall take into
consideration and build on the report submitted under paragraph (1). In
the preparation of such 5-year plan, the Secretary shall provide an
opportunity for public comment, and the plan submitted to Congress
shall include a summary of comments received. Such plan may not be
implemented until 90 days after its submission to the Congress.
``(3) Beginning with first year after submission of the 5-year plan
under paragraph (2), the Secretary shall annually report to the
Congress, at the time of the President's annual budget request to
Congress, on--
``(A) progress made in achieving the purposes of the
Outreach Program described in subsection (a) using criteria and
procedures established under subsection (g)(1)(B)(iii);
``(B) changes proposed to the 5-year plan;
``(C) performance in adhering to schedules; and
``(D) any recommendations for legislative changes necessary
to enhance the Outreach Program.
The report under this paragraph submitted at the end of the fourth year
of operation of the Outreach Program shall include recommendations on
whether to terminate the Outreach Program or extend it for an
additional period not to exceed 5 years.''.
SEC. 205. ADVANCED MANUFACTURING TECHNOLOGY DEVELOPMENT PROGRAM.
Title III of the Stevenson-Wydler Technology Innovation Act of
1980, as added by sections 202, 203, and 204 of this Act, is further
amended by adding at the end the following new section:
``SEC. 304. ADVANCED MANUFACTURING TECHNOLOGY DEVELOPMENT PROGRAM.
``(a) Establishment.--The Secretary, through the Under Secretary
and the Director, shall establish an Advanced Manufacturing Technology
Development Program which shall include projects to develop advanced
manufacturing systems, networks, electronic data exchange, and which
shall be complementary with advanced manufacturing technology
development programs supported by other Federal agencies.
``(b) Purpose.--The purpose of the Advanced Manufacturing
Technology Development Program is to create collaborative multiyear
technology development programs involving United States companies and,
as appropriate, cooperating with other Federal agencies and
laboratories, the States, worker organizations, universities and
colleges, independent research organizations, and other interested
persons, in order to develop, refine, test, and transfer design and
manufacturing technologies and associated applications, including
advanced computer integration and electronic networks for manufacturing
information exchange.
``(c) Program Components.--The Advanced Manufacturing Technology
Development Program shall include--
``(1) the advanced manufacturing research and development
activities at the Institute; and
``(2) one or more technology development testbeds within
the United States, selected in accordance with procedures,
including cost sharing, established for the Advanced Technology
Program established under section 28 of the National Institute
of Standards and Technology Act (15 U.S.C. 278n), whose purpose
shall be to develop, refine, and test advanced manufacturing,
data exchange, and networking technologies and associated
applications and to facilitate the transfer of such
technologies and applications to United States manufacturers.
``(d) Functions and Activities.--The Advanced Manufacturing
Technology Development Program, under the coordination of the
Secretary, through the Director, shall--
``(1) test and, as appropriate, facilitate and support the
development of the equipment, computer software, and systems
integration necessary for the successful operation within the
United States of advanced design and manufacturing systems and
associated electronic networks;
``(2) establish at the Institute and the technology
development testbed or testbeds--
``(A) prototype advanced computer-integrated
manufacturing systems;
``(B) prototype electronic networks linking
manufacturing systems; and
``(C) prototype clean manufacturing systems;
``(3) assist United States companies to develop voluntary
consensus standards relevant to advanced computer-integrated
manufacturing operations, including standards for networks,
electronic data interchange, and digital product data
specifications;
``(4) help to make high-performance computing and
networking technologies an integral part of design and
production processes where appropriate;
``(5) conduct research to identify and overcome technical
barriers to the successful and cost-effective operation of
advanced manufacturing systems and networks and to promote and
facilitate electronic data exchange;
``(6) facilitate the efforts of United States companies to
develop and test new applications for manufacturing systems,
networks, and information exchange;
``(7) involve in the Advanced Manufacturing Technology
Development Program, to the maximum extent practicable, both
those United States manufacturers which make manufacturing
technology and related computer equipment and software, and
United States companies which buy such technology, equipment
and software;
``(8) identify training needs, as appropriate, for
managers, engineers, and employees of United States
manufacturers in the operation and applications of advanced
manufacturing technologies and networks, with particular
emphasis on training for production workers in the effective
use of advanced manufacturing technology;
``(9) work with United States companies, universities,
independent research organizations, and other interested
parties to develop standards, tools, and techniques for the use
of advanced computer-based training systems, including multi-
media and interactive learning technologies;
``(10) involve small businesses in its activities;
``(11) exchange information and personnel, as appropriate,
between the technology development testbeds and the outreach
network created under section 303(d); and
``(12) coordinate its activities with the National High-
Performance Computing Program described in section 101 of the
High-Performance Computing Act of 1991 (15 U.S.C. 5511) to
ensure that both programs are complementary and compatible.
``(e) Testbed Awards.--(1) In selecting applicants to receive
awards under subsection (c)(2) of this section, the Secretary shall
give preferential consideration to applicants that have existing
computer expertise in manufacturing applications and the ability to
diffuse such expertise to United States companies, and that, in the
case of joint research and development ventures, include both suppliers
and users of advanced manufacturing technology. In the case of systems
described in subsection (d)(2)(C), the Secretary shall also give
preferential consideration to applicants that have existing program
expertise in clean manufacturing, including the areas of concurrent
engineering, materials research, and environmental science, and which
have a technology transfer mechanism in place to transfer testbed
results of a clean manufacturing program to industry participants.
``(2) An industry-led joint research and development venture
applying for an award under subsection (c)(2) of this section may
include one or more State research organizations, universities, Federal
laboratories, independent research organizations, or Regional Centers
for the Transfer of Manufacturing Technology (as created under section
25 of the National Institute of Standards and Technology Act) and other
organizations as the Secretary considers appropriate.
``(f) Advice and Assistance.--(1) Within 6 months after the date of
enactment of this title, and before any request for proposals is
issued, the Secretary shall hold one or more workshops to solicit
advice from United States companies and from other Federal agencies,
particularly the Department of Defense, the Department of Energy, and
the National Aeronautics and Space Administration, regarding the
specific missions and activities of the testbeds.
``(2) The Secretary shall, to the greatest extent possible,
coordinate activities under this section with activities of other
Federal agencies and initiatives relating to computer-aided acquisition
and logistics support, electronic data interchange, flexible computer-
integrated manufacturing, and enterprise integration.
``(3) The Secretary may request and accept funds, facilities,
equipment, or personnel from other Federal agencies in order to carry
out this section.
``(g) Antitrust Savings Clause.--This section shall not be
construed to modify, impair, or supersede the operation of the
antitrust laws. For purposes of this subsection, the term `antitrust
laws' has the meaning given it in subsection (a) of the first section
of the Clayton Act (15 U.S.C. 12(a)), except that such term includes
the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.),
commonly known as the Robinson Patman Act, and section 5 of the Federal
Trade Commission Act (15 U.S.C. 45) to the extent that such section 5
applies to unfair methods of competition.''.
SEC. 206. MISCELLANEOUS AND CONFORMING AMENDMENTS.
(a) Definitions.--Section 4 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3703) is amended by adding at the end
the following new paragraphs:
``(14) `Director' means the Director of the National
Institute of Standards and Technology.
``(15) `Institute' means the National Institute of
Standards and Technology.
``(16) `Assistant Secretary' means the Assistant Secretary
of Commerce for Technology Policy.
``(17) `Advanced manufacturing technology' means--
``(A) numerically-controlled machine tools, robots,
automated process control equipment, computerized
flexible manufacturing systems, associated computer
software, and other technology for improving
manufacturing and industrial production of goods,
including biotechnology products, which advance the
state-of-the-art; or
``(B) novel manufacturing techniques and processes
not previously generally available that improve
manufacturing quality, productivity, and practices,
including engineering design, quality assurance,
concurrent engineering, continuous process production
technology, inventory management, upgraded worker
skills, communications with customers and suppliers,
and promotion of sustainable economic growth.
``(18) `Modern technology' means the best available proven
technology, techniques, and processes appropriate to enhancing
the productivity of manufacturers or to promoting sustainable
economic growth.
``(19) `Sustainable economic growth' means economic growth
that enhances the national quality of life and preserves
environmental integrity.
``(20) The term `United States company' means an entity
which the Secretary finds, based on a demonstration by such
entity--
``(A) maintains substantial employment in the
United States;
``(B) agrees, with respect to a technology arising
from assistance provided under this Act or the National
Competitiveness Act of 1993, to promote the manufacture
within the United States of products resulting from
that technology;
``(C) agrees to procure parts and materials for
such products from competitive United States suppliers;
and
``(D) either--
``(i) is a United States-owned company; or
``(ii) is a company incorporated in the
United States that has a parent company
incorporated in a country which the Secretary
finds--
``(I) affords to United States-
owned companies opportunities
comparable to those afforded to any
other company to participate in
programs and to have access to
resources and information equivalent to
the opportunities authorized under this
Act or the National Competitiveness Act
of 1993 to foreign-owned entities
engaged in commerce in the United
States;
``(II) has a standards development
and conformity assessment process that
is open and transparent, and that
results in standards that are fair and
reasonable and do not discriminate
against United States products and
production processes;
``(III) affords to United States-
owned companies local investment
opportunities comparable to those
afforded any other company; and
``(IV) affords adequate and
effective protection for the
intellectual property rights of United
States-owned companies.
``(21) The term `United States manufacturer' means a United
States company which the Secretary finds, based on a
demonstration by such company, makes substantial investments in
the United States in research, development, and manufacturing
(including the manufacture of major components or subassemblies
in the United States).
``(22) The term `United States-owned company' has the
meaning given such term in section 28(j)(2) of the National
Institute of Standards and Technology Act (15 U.S.C.
278n(j)(2).
``(23) `Benchmarking' means the assessment of foreign
science and technology capabilities relative to comparable
United States capabilities.
``(24) `Independent research organizations' means nonprofit
organizations organized primarily for the purpose of conducting
or managing research activities.''.
(b) Redesignations.--The Stevenson-Wydler Technology Innovation Act
of 1980 (15 U.S.C. 3701 et seq.) is amended--
(1) by inserting immediately after section 4 the following
new title heading:
``TITLE I--DEPARTMENT OF COMMERCE AND RELATED PROGRAMS'';
(2) by redesignating sections 5 through 10 as sections 101
through 106, respectively;
(3) by redesignating sections 16 through 22, as sections
107 through 113, respectively;
(4) by inserting immediately after section 113 (as
redesignated by paragraph (3) of this subsection) the following
new title heading:
``TITLE II--FEDERAL TECHNOLOGY TRANSFER'';
(5) by redesignating sections 11 through 15 as sections 201
through 205, respectively;
(6) by redesignating section 23 as section 206;
(7) in section 4--
(A) by striking ``section 5'' each place it appears
and inserting in lieu thereof ``section 101'';
(B) in paragraphs (4) and (6), by striking
``section 6'' and ``section 8'' each place they appear
and inserting in lieu thereof ``section 102'' and
``section 104'', respectively; and
(C) in paragraph (13), by striking ``section 6''
and inserting in lieu thereof ``section 102'';
(8) in section 105 (as redesignated by paragraph (2) of
this subsection) by striking ``section 6'' each place it
appears and inserting in lieu thereof ``section 102'';
(9) in section 106(d) (as redesignated by paragraph (2) of
this subsection) by striking ``7, 9, 11, 15, 17, or 20'' and
inserting in lieu thereof ``103, 105, 108, 111, 201, or 205'';
(10) in section 201(i) (as redesignated by paragraph (5) of
this subsection) by inserting ``loan, lease, or'' after
``may''; and by inserting ``Actions taken under this subsection
shall not be subject to Federal requirements on the disposal of
property.'' after ``activities.'';
(11) in section 202(b) (as redesignated by paragraph (5) of
this subsection) by striking ``section 14'' and inserting in
lieu thereof ``section 204'';
(12) in section 204(a)(1) (as redesignated by paragraph (5)
of this subsection) by striking ``section 12'' and inserting in
lieu thereof ``section 202'';
(13) in section 113 (as redesignated by paragraph (3) of
this subsection) by striking ``sections 11, 12, and 13'' and
inserting in lieu thereof ``sections 201, 202, and 203'';
(14) in section 206 (as redesignated by paragraph (6) of
this subsection)--
(A) by striking ``section 11(b)'' in subsection
(a)(2) and inserting in lieu thereof ``section
201(b)''; and
(B) by striking ``section 6(d)'' in subsection (b)
and inserting in lieu thereof ``section 102(d)''; and
(15) by adding at the end of section 201 (as redesignated
by paragraph (5) of this subsection) the following new
subsection:
``(j) Additional Technology Transfer Mechanisms.--In addition to
the technology transfer mechanisms set forth in this section and
section 202 of this Act, the heads of Federal departments and agencies
also may transfer technologies through the technology transfer and
extension programs of the Department of Commerce and the Department of
Defense.''.
SEC. 207. MANUFACTURING TECHNOLOGY CENTERS.
Section 25 of the National Institute of Standards and Technology
Act (15 U.S.C. 278k), is amended--
(1) by amending the section heading to read as follows:
``manufacturing technology centers'';
(2) in subsection (c)(5), by striking ``which are
designed'' and all that follows through ``operation of a
Center'' and inserting in lieu thereof ``to a maximum of one-
third Federal funding. Each Center which receives financial
assistance under this section shall be evaluated during its
sixth year of operation, and at such subsequent times as the
Secretary considers appropriate, by an evaluation panel
appointed by the Secretary in the same manner as was the
evaluation panel previously appointed. The Secretary shall not
provide funding for additional years of the Center's operation
unless the evaluation is positive and the Secretary finds that
continuation of funding furthers the goals of the Department.
Such additional Federal funding shall not exceed one-third of
the cost of the Center's operations'';
(3) by striking subsection (d); and
(4) by adding at the end the following new subsections:
``(d) If a Center receives a positive evaluation during its third
year of operation, the Director may, any time after that evaluation,
contract with the Center to provide additional technology extension or
transfer services above and beyond the baseline activities of the
Center. Such additional services may include, but are not limited to,
the development and operation of the following:
``(1) Programs to assist United States companies that are
engaged in manufacturing and their employees, including front-
line production workers, in the Center's region to learn and
apply the technologies, techniques, and processes associated
with systems management technology, electronic data exchange,
or improving manufacturing productivity.
``(2) Services focused on the testing, development, and
application of manufacturing and process technologies within
specific technical fields such as advanced materials or
electronics fabrication for the purpose of assisting United
States companies that are engaged in manufacturing, both within
the Center's original service region and in other regions, to
improve manufacturing quality, product design, workforce
training, and production efficiency in those specific technical
fields.
``(3) Industry-led demonstration programs that involve
United States manufacturing technology consortia to provide
ongoing research, technology transfer, and worker training
assistance to their members. An award under this paragraph
shall be for no more than $500,000 per year, and shall be
subject to renewal after a 1-year demonstration period.
``(e) In addition to any assistance provided or contracts entered
into with a Center under this section, the Director is authorized to
make separate and smaller awards, through a competitive process, to
nonprofit organizations which wish to work with a Center. Such awards
shall be for the purpose of enabling those organizations to provide
outreach services, in collaboration with the Center, to United States
manufacturers located in parts of the region served by the Center which
are not easily accessible to the Center and which are not served by any
other manufacturing outreach center. Organizations which receive such
awards shall be known as Local Manufacturing Offices. In reviewing
applications, the Director shall consider the needs of rural as well as
urban manufacturers. No single award for a Local Manufacturing Office
shall be for more than three years, awards shall be renewable through
the competitive awards process, and no award shall be made unless the
applicant provides matching funds at least equal to the amount received
under this section.
``(f) In carrying out this section, the Director shall coordinate
his efforts with the plans for the National Technology Outreach Program
established under section 303 of the Stevenson-Wydler Technology
Innovation Act of 1980.''.
SEC. 208. STATE TECHNOLOGY EXTENSION PROGRAM.
(a) Establishment.--Section 26(a) of the National Institute of
Standards and Technology Act (15 U.S.C. 278l(a)), is amended--
(1) by inserting immediately after ``(a)'' the following
new sentence: ``There is established within the Institute a
State Technology Extension Program.''; and
(2) by inserting ``through that Program'' immediately after
``technical assistance''.
(b) Additional Authorities.--Section 26 of the National Institute
of Standards and Technology Act (15 U.S.C. 278l) is amended by adding
at the end the following new subsection:
``(c) In addition to the general authorities listed in subsection
(b) of this section, the State Technology Extension Program also may,
through merit-based competitive review processes--
``(1) make awards to States and conduct workshops, pursuant
to section 5121(b) of the Omnibus Trade and Competitiveness Act
of 1988, in order to help States improve their planning and
coordination of technology extension activities;
``(2) support technology demonstration projects to help
States provide technical assistance and services to United
States manufacturers that will improve their productivity and
competitiveness;
``(3) support State efforts to develop and test innovative
ways to help United States manufacturers improve their
technical capabilities;
``(4) support State efforts designed to help United States
manufacturers in rural as well as urban areas adopt modern
manufacturing technologies;
``(5) support State efforts to assist interested United
States manufacturers in the defense industry to adapt to modern
or advanced manufacturing technologies as they convert to
nondefense or dual-use purposes;
``(6) support worker technology education programs in the
States at institutions such as research universities, community
colleges, labor education centers, labor-management committees,
and worker organizations in production technologies critical to
the Nation's future, with an emphasis on high-performance work
systems, the skills necessary to use modern or advanced
manufacturing systems well;
``(7) help States develop programs to train personnel who
in turn can provide technical skills to managers and workers of
United States manufacturers; and
``(8) support State efforts to assist United States
manufacturers to develop on-the-job training in modern and
advanced manufacturing technologies, techniques, and processes
and to promote the development and adoption of modern and
advanced manufacturing technologies.''.
Subtitle B--National Science Foun- dation Manufacturing Programs
SEC. 211. ROLE OF THE NATIONAL SCIENCE FOUNDATION IN MANUFACTURING.
The Director of the National Science Foundation, after appropriate
consultation with the Secretary, the Under Secretary, and the Director,
shall--
(1) work with United States companies to identify areas of
research in advanced manufacturing technologies and practices
that offer the potential to improve United States productivity,
competitiveness, employment, and sustainable economic growth;
(2) support research at United States universities to
improve advanced manufacturing technologies and practices; and
(3) work with the Technology Administration and the
Institute and, as appropriate, other Federal agencies to
accelerate the transfer to United States companies of
manufacturing research and innovations developed at
universities.
SEC. 212. ENGINEERING AND COOPERATIVE RESEARCH CENTERS.
The Director of the National Science Foundation shall strengthen
and expand the number of Engineering Research Centers and strengthen
and expand the Industry/University Cooperative Research Centers Program
with the goal of increasing the engineering talent base versed in
critical technologies, with emphasis on advanced manufacturing
technology and practices, and of advancing fundamental engineering
knowledge in these technologies, including biotechnology. At least one
Engineering Research Center shall have a research and education focus
on the concerns of United States manufacturers, including small
businesses that are trying to modernize their operations. Awards under
this section shall be made on a competitive, merit review basis and on
terms and conditions the Director may prescribe to ensure that the
purposes for which the award is made are satisfied. Such awards may
include support for acquisition of instrumentation, equipment, and
facilities related to the research and education activities of the
Centers and support for undergraduate students to participate in the
activities of the Centers.
SEC. 213. MANUFACTURING TRAINEESHIPS AND FELLOWSHIPS.
(a) Graduate Traineeships.--The Director of the National Science
Foundation, in consultation with the Secretary, may establish a program
to provide traineeships to graduate students at institutions of higher
education within the United States who are citizens of the United
States and who choose to pursue masters or doctoral degrees in
manufacturing engineering. The Director of the National Science
Foundation shall make an effort to ensure the provision of traineeships
under this subsection to socially and economically disadvantaged
individuals (within the meaning of section 8(a) (5) and (6) of the
Small Business Act, and including women).
(b) Manufacturing Managers in the Classroom Program.--The Director
of the National Science Foundation, in consultation with the Secretary,
may establish a program to provide fellowships, on a cost-shared basis,
to employees of United States companies with experience in
manufacturing to serve for 1 or 2 years as instructors in manufacturing
at 2-year community and technical colleges in the United States.
SEC. 214. TOTAL QUALITY MANAGEMENT.
The Director of the National Science Foundation, in consultation
with the Secretary, the Under Secretary, and the Director, may
establish a program to develop innovative curricula, courses, and
materials for use by institutions of higher education for instruction
in total quality management and related management practices, in order
to help improve the productivity of United States companies.
TITLE III--CRITICAL TECHNOLOGIES
Subtitle A--Benchmarking Science and Technology
SEC. 301. BENCHMARKING UNITED STATES SCIENCE AND TECHNOLOGY AGAINST
FOREIGN CAPABILITIES.
The Stevenson-Wydler Technology Innovation Act of 1980, as amended
by this Act, is further amended by adding at the end the following new
title:
``TITLE IV--BENCHMARKING SCIENCE AND TECHNOLOGY
``SEC. 401. FINDINGS AND PURPOSES.
``(a) Findings.--As other countries have gained strength in new
technologies and as centers of technical excellence have developed
around the world, it has become increasingly important for United
States companies and research organizations to understand their
scientific and technological capabilities relative to those of other
global competitors.
``(b) Purposes.--The purposes of this title are to conduct and
coordinate the collection, evaluation, and dissemination, to United
States companies, State and local governments, and nonprofit
organizations, of information on foreign science and technology,
specifically information assessing foreign capabilities relative to
comparable United States capabilities.
``SEC. 402. PROGRAM RESPONSIBILITIES.
``(a) Department of Commerce.--The Department of Commerce shall be
the lead agency of the Federal Government in making available
information for assessing the comparative strength of United States
scientific and technological capabilities. The Secretary, acting
through the Under Secretary, shall--
``(1) collect within the Federal Government and disseminate
to United States companies, State and local governments, and
nonprofit organizations information regarding foreign process
and product research and technologies of importance to United
States companies and the Federal Government, and regarding
related technology assessment activities already underway in
the Federal Government;
``(2) provide such information and analyses in electronic
form, and ensure, consistent with confidentiality and security
considerations, that they will be available through the
clearinghouse to the outreach network created under section 303
of this Act;
``(3) work, in coordination with the Federal Coordinating
Council for Science, Engineering, and Technology, as
appropriate, to streamline Federal Government procedures for
collecting, evaluating, and disseminating information analyzing
foreign scientific and technological information; and
``(4) conduct appropriate planning for more comprehensive
collection, evaluation, dissemination, and application of
foreign science and technology information.
``(b) Other Agencies.--All executive departments and agencies shall
assist the Secretary in carrying out this title.
``(c) Additional Authorities.--The Secretary, acting through the
Under Secretary, is authorized to--
``(1) arrange for access to information collected and
developed under this title, in electronic form or otherwise, by
authorized and interested parties, including charging and
retaining fees for expenditure, subject to appropriations;
``(2) provide for the collection of additional information
to fulfill the purposes of this title;
``(3) provide for analysis of foreign research and
development activities and technological capabilities,
particularly in those areas where the United States is
considered to be at par or lagging foreign capabilities or
where foreign capabilities are projected to overtake those of
the United States;
``(4) enter into joint ventures authorized under section
212(a)(1)(A) of Public Law 100-519 (15 U.S.C. 3704b(a)(1)(a))
in carrying out this title;
``(5) consult with users of such information, as
appropriate, on the usefulness of available foreign scientific
and technological information and on the need for additional
information and assessment activities and consult with other
affected agencies of the Federal Government to promote
consistent and useful collection, assessment, and analysis of
foreign technological information; and
``(6) establish and administer the fellowship program
described in subsection (d).
``(d) Fellowship Program.--(1) The Secretary, acting through the
Under Secretary, shall establish and administer a fellowship program to
support Technology Fellows to assist the Under Secretary in carrying
out activities under this title relating to those countries that are
major competitors of the United States in critical technologies, and to
identify opportunities for technology transfer to the United States or
technological collaboration for United States industries.
``(2) Technology Fellows shall--
``(A) regularly report to the Department of Commerce on
work planned, in progress, and accomplished; and
``(B) provide support to the Department of Commerce as
requested by that Department.
``(3) Fellowships awarded under the program established under this
subsection shall--
``(A) be awarded for a period of 2 years;
``(B) be reasonable and appropriate; and
``(C) include provisions for living and office arrangements
in the host country.
``(4) Only individuals who--
``(A) have at least a bachelors degree in engineering or
science; and
``(B) have at least 5 years of work experience in
manufacturing or technology development,
shall be eligible for a fellowship under this program.''.
Subtitle B--Advanced Technology Program
SEC. 321. DEVELOPMENT OF PROGRAM PLAN.
The Secretary, acting through the Under Secretary and the Director,
shall, within 6 months after the date of enactment of this Act, submit
to the Congress a plan for the expansion of the Advanced Technology
Program established under section 28 of the National Institute of
Standards and Technology Act (15 U.S.C. 278n), with specific
consideration given to--
(1) closer coordination and cooperation with the Advanced
Research Projects Agency and other Federal research and
development agencies, including joint funding of large scale
consortia, as appropriate;
(2) broadening of the scope of the program to include and
focus on as many critical technologies identified pursuant to
section 603(d) of the National Science and Technology Policy,
Organization, and Priorities Act of 1976 (42 U.S.C. 6683(d)) as
is appropriate; and
(3) changes that may be needed when annual funds available
for awards and cooperative agreements under the Program reach
levels of $200,000,000 and $500,000,000.
SEC. 322. LARGE SCALE RESEARCH AND DEVELOPMENT CONSORTIA.
(a) Establishment of Program.--The Secretary, acting through the
Director, may establish a program for the support of large-scale
research and development consortia.
(b) Selection Procedures and Requirements.--
(1) General rule.--Except as provided in paragraph (2), the
selection and making of awards to large-scale research and
development consortia under this section shall be carried out
in accordance with procedures and requirements applicable to
joint ventures described in section 28(b)(1) of the National
Institute of Standards and Technology Act (15 U.S.C.
278n(b)(1)).
(2) Exception.--Notwithstanding section 28(b)(1)(B)(ii) of
the National Institute of Standards and Technology Act (15
U.S.C. 278n(b)(1)(B)(ii)), for purposes of awards made under
this section, a minority share of the cost of large-scale
research and development consortia may be provided by the
Federal Government for up to 7 years.
(c) Project Selection.--Preference shall be given for selection
under this section to large-scale research and development consortia
that would not be undertaken by the private sector without a Federal
investment of $30,000,000 or more per year.
(d) Selection Criteria.--In selecting large-scale research and
development consortia under this section, the Secretary, acting through
the Director, shall give priority to consortia that best achieve the
following goals:
(1) Significant contribution to broad economic growth.
(2) Significant contribution to the national quality of
life.
(3) Significant contribution to environmental
sustainability.
(4) Promotion of private sector partnership with Federal
research and development activities.
(5) Substantial improvement of the international
competitiveness of United States companies.
(6) Involvement of several competitor firms in the
development of the key consortia technologies.
(7) Strengthening of the linkages between domestic
suppliers, systems developers, and end-users.
(8) Participation by domestic end-users from several
industrial sectors.
(9) Promotion of the diffusion of nonproprietary
information to United States companies through strong links
with organizations such as trade and professional groups.
(e) Independent Technical Review.--The Secretary, through the
Director, shall provide for technical review at least once every three
years of large-scale research and development consortia receiving
support under this section, by the National Institute of Standards and
Technology, other national laboratories, the Department of Commerce
Technology Advisory Board established under section 401 of this Act, or
independent research organizations that are not a participant in the
large-scale research and development consortium being reviewed. Such
review shall be for the purpose of determining progress toward the
objectives for which such large-scale research and development
consortium was formed, with recommendations for improvement, funding
adjustments, or termination of Federal support. The Secretary, through
the Director, shall transmit to the Committee on Science, Space, and
Technology of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate an annual status
report summarizing significant accomplishments in achieving those
objectives.
(f) Study.--The Secretary, through the Director, shall undertake a
study to determine the best way to maximize the benefit of large-scale
research and development consortia to industry as a whole in carrying
out this section. The results of such study shall be submitted to the
Congress within 6 months after the date of the enactment of this Act.
Such report shall include criteria and procedures for the evaluation by
the Director of the progress of consortia funded under this section.
(g) Termination.--The Secretary shall establish criteria and
procedures for terminating Federal funding of a consortium under this
section if the Secretary determines that such consortium is not making
acceptable progress toward achieving its goals. No consortium shall
receive funding under this section for more than 7 years.
(h) Definition.--For purposes of this section, the term ``large-
scale research and development consortia'' means a joint venture
described in section 28(b)(1) of the National Institute of Standards
and Technology Act (15 U.S.C. 278n(b)(1)).
SEC. 323. TECHNICAL AMENDMENTS.
Section 28 of the National Institute of Standards and Technology
Act (15 U.S.C. 278n) is amended--
(1) by adding at the end the following new subsection:
``(k) Notwithstanding subsections (b)(1)(B)(ii) and (d)(3), the
Director may grant an extension of not to exceed 6 months beyond the
deadlines established under those subsections for joint venture and
single applicant awardees to expend Federal funds to complete their
projects, if such extension may be granted with no additional cost to
the Federal Government.'';
(2) in subsection (b)(2), by inserting ``, and with
independent research organizations'' after ``especially small
businesses''; and
(3) in subsection (j)--
(A) by redesignating paragraphs (1) and (2) as
paragraphs (2) and (3), respectively; and
(B) by inserting before paragraph (2), as so
redesignated, the following new paragraph:
``(1) the term `independent research organizations' means
nonprofit organizations organized primarily for the purpose of
conducting or managing research activities;''.
SEC. 324. COUNTRY QUALIFICATION NOTICE.
Section 28 of the National Institute of Standards and Technology
Act (15 U.S.C. 278n) is amended by adding at the end thereof the
following new subsection:
``(l) The Secretary shall provide prospective applicants for
assistance under this section with guidance as to their eligibility
under subsection (d)(9)(B)(ii). No such applicant shall be required to
provide evidence that a country is a country described in such
subsection (d)(9)(B)(ii).''.
SEC. 325. RECOUPMENT.
Section 28 of the National Institute of Standards and Technology
Act (15 U.S.C. 278n) is amended by adding the following new subsection:
``(l)(1) Not later than 180 days after the date of enactment of
this subsection, the Secretary shall establish procedures and criteria
for recoupment in connection with any project, for which a grant,
contract, or cooperative agreement is made under this section, which
has led to the development of a product or process which is marketed or
used.
``(2)(A) Except as provided in subparagraph (B), such recoupment
shall be required as a condition for award and be proportional to the
Federal share of the costs of such project, and shall be derived from
the proceeds of royalties or licensing fees received in connection with
such product or process.
``(B) In the case where a product or process is used by the
recipient of the financial assistance under this section for the
production and sale of its own products or processes, the recoupment
shall consist of a payment equivalent to the payment which would be
made under subparagraph (A).
``(3) The Secretary may at any time waive or defer all or some of
the recoupment requirements of this subsection as necessary, depending
on--
``(A) the commercial competitiveness of the entity or
entities developing or using the product or process;
``(B) the profitability of the project; and
``(C) the commercial viability of the product or process
utilized.''.
Subtitle C--Civilian Technology Loan Program
SEC. 331. LOAN AND LOAN GUARANTEE AUTHORITY.
To the extent provided in appropriation Acts, the Secretary, acting
through the Under Secretary, may make, or enter into agreements to
make, loans and loan guarantees, either directly or in cooperation with
other lenders, to small and medium-sized qualified business concerns in
accordance with this subtitle.
SEC. 332. OPERATING PLAN AND EFFECTIVE DATE.
(a) Operating Plan.--The Secretary, acting through the Under
Secretary, shall prepare (in consultation with the Advisory Committee
established under section 344, other appropriate executive agencies,
the States, United States companies, the financial community, and other
appropriate parties) and submit to the Congress on or before November
1, 1993, an operating plan to carry out this subtitle. In preparing
such plan, the Secretary shall consider and evaluate alternative
approaches to achieving the purposes of this subtitle and shall develop
recommendations, as appropriate, to fulfill the purposes of this
subtitle in the most effective and efficient manner achievable. Such
evaluations and recommendations shall be included in the plan submitted
under this subsection.
(b) Effective Date.--Except as provided in subsection (a), the
provisions of this subtitle shall take effect on October 1, 1994.
SEC. 333. TERMS AND CONDITIONS.
Loans and loan guarantees made under section 331 shall be in such
form and manner and under such terms and conditions as the Under
Secretary may prescribe by regulation, and shall be subject to the
following terms and conditions:
(1) Loans awarded or guaranteed shall be for sound
financing of research, development, demonstration, or
utilization of critical technologies or advanced technologies.
(2) Loans shall only be awarded or guaranteed if the Under
Secretary finds that--
(A) sufficient collateral, which may include both
tangible and intangible assets, is pledged; or
(B) the borrower is sufficiently financially sound,
to reasonably ensure repayment.
(3) Loans awarded or guaranteed may not exceed 50 percent
of total eligible project costs. For purposes of this section,
the term ``eligible project costs'' shall be defined by the
Under Secretary by regulation.
(4) The total principal amount of outstanding loans awarded
or guaranteed to a single borrower may not exceed $2,000,000 at
any time.
(5) Loans awarded or guaranteed shall be senior to any
other debt obligations of the borrower, except to the extent
that the Under Secretary considers necessary to accommodate the
borrower's ability to raise sufficient debt or equity capital
from non-Federal sources to pay the balance of eligible project
costs that are not covered by such loans.
(6) Interest on a loan, or portion of a loan, awarded or
guaranteed by the Federal Government under this subtitle shall
be at a rate determined by the Secretary of the Treasury, at
the time such loan is made, to equal the then current average
market yield on outstanding debt obligations of the United
States with remaining periods to maturity comparable to the
maturity of such loan, plus an additional charge of up to 1
percent applied by the Under Secretary to cover expected
defaults and reasonable administrative costs of carrying out
this subtitle. For purposes of this section, the term
``default'' shall be defined by the Under Secretary by
regulation.
(7) Except as provided in paragraph (8), the maturity of
loans awarded or guaranteed under this subtitle may not be less
than 2 years or greater than--
(A) 10 years; or
(B) the useful life of property, plant, equipment,
or other assets, as determined by the Secretary of the
Treasury, which have been pledged as collateral for
such loan,
whichever is greater.
(8) The Under Secretary may extend the maturity of or renew
a loan or extend the guarantee of a loan for additional
periods, not to exceed 5 years, only if such extension or
renewal will aid in the orderly liquidation of such loan.
(9) Payment of interest on direct loans made by the Federal
Government under this subtitle may be deferred by the borrower,
upon approval by the Under Secretary, only to the extent that
the borrower has established to the satisfaction of the Under
Secretary that the borrower has not realized sufficient
earnings and returns of capital to make such payment without
incurring undue financial hardship, and that there is a
reasonable prospect that such loan and interest thereon will be
repaid.
(10) The Under Secretary may guarantee payment of 100
percent of principal and interest on a loan made under section
331.
(11) The Under Secretary may establish, charge, and
regulate fees to cover loan origination and servicing costs
that are reasonable and necessary.
SEC. 334. TECHNICAL ASSISTANCE FOR LENDERS AND BORROWERS.
The Secretary, acting through the Under Secretary, shall, upon
request, provide technical assistance and services, as appropriate and
needed, to lenders and borrowers under this subtitle, and shall ensure
that such lenders and borrowers have ready access to appropriate
assistance available under title III of the Stevenson-Wydler Technology
Innovation Act of 1980, or under any other Act, in order to aid such
lenders and borrowers in achieving the purposes described in section
333(1). The Secretary may charge fees for technical assistance and
services provided under this section in amounts sufficient to cover the
reasonable cost of such assistance and services. The Secretary may
waive such fees on a case-by-case basis. Fees paid to the United States
under this section shall be deposited in an account established by the
Under Secretary and shall be available solely for carrying out this
subtitle, to the extent provided in advance in appropriations Acts.
SEC. 335. OUTREACH TO ECONOMICALLY DEPRESSED AREAS.
The Secretary, acting through the Under Secretary, shall seek to
ensure that qualified business concerns located in areas determined by
the Secretary to have a depressed economy, or a significant
concentration of defense-related industries, or chronically high
unemployment, are notified of the availability of financial assistance
through the program established under this subtitle and, to the extent
practicable, to encourage and facilitate the participation of such
qualified business concerns in such program.
SEC. 336. SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.
The Secretary shall, to the fullest extent possible, ensure that at
least 10 percent of amounts loaned under this subtitle shall be made
available to qualified business concerns owned or controlled by
socially and economically disadvantaged individuals (within the meaning
of section 8(a) (5) and (6) of the Small Business Act, and including
women). Nothing in this section shall permit or require the use of
quotas or a requirement that has the effect of a quota in determining
eligibility for loans made available under this subtitle. Nothing in
this section shall be considered to extend eligibility to individuals
on the basis of sexual orientation.
SEC. 337. DEFINITIONS.
For purposes of this subtitle, the terms ``advanced technologies'',
``critical technologies'', and ``qualified business concern'' have the
meaning given such terms in section 342 of this Act.
Subtitle D--Civilian Technology Development Program
SEC. 341. SHORT TITLE.
This subtitle may be cited as the ``Civilian Technology Development
Act of 1993''.
SEC. 342. DEFINITIONS.
For purposes of this subtitle--
(1) the term ``advanced technologies'' means technologies
eligible for assistance under the Advanced Technology Program
established under section 28 of the National Institute of
Standards and Technology Act (15 U.S.C. 278n);
(2) the term ``articles'' means articles of incorporation
for an incorporated body, and the functional equivalent, or
other similar documents specified by the Under Secretary, for
other business entities;
(3) the term ``critical technologies'' means technologies
identified as critical technologies pursuant to section 603(d)
of the National Science and Technology Policy, Organization,
and Priorities Act of 1976 (42 U.S.C. 6683(d));
(4) the term ``Department'' means the Department of
Commerce;
(5) the term ``executive agency'' has the meaning given
such term in section 105 of title 5, United States Code;
(6) the term ``license'' means a license issued by the
Under Secretary under section 345;
(7) the term ``licensee'' means a company licensed under
section 345;
(8) the term ``preferred securities'' means preferred stock
or a preferred limited partnership interest or other similar
security, as defined by the Under Secretary by regulation;
(9) the term ``private equity capital'' means the paid-in
capital and paid-in surplus, on hand or legally committed to be
provided, of a licensee organized as a corporation, or the
partnership capital, on hand or legally committed to be
provided, of a licensee organized as an unincorporated
partnership, but does not include any funds--
(A) borrowed by the licensee from any source;
(B) obtained from the sale of preferred securities;
or
(C) derived directly or indirectly from any Federal
source;
(10) the term ``qualified business concern'' means a United
States company described in section 28(d)(9)(B) of the National
Institute Standards and Technology Act (15 U.S.C.
278n(d)(9)(B)), if--
(A) the business of such company includes the
pursuit, under the Small Business Innovation Research
(SBIR) program, of applications described in section
9(e)(4)(C) of the Small Business Act (15 U.S.C.
638(e)(4)(C));
(B) the principal business of such company is the
development or application of a critical technology;
(C) such company is eligible for assistance under
the Advanced Technology Program (ATP) established under
section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n); or
(D) such company is principally engaged in the
development or exploitation of inventions,
technological improvements, new processes, or products
not previously generally available (within the meaning
of section 851(e)(1) of the Internal Revenue Code of
1986);
(11) the term ``State'' means several States, the District
of Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands, and any other territory or possession
of the United States;
(12) the term ``State sponsored licensee'' means a company
licensed under section 345 in which a State or instrumentality
of a State has at least a 25 percent investment interest in the
private equity capital of such licensee;
(13) the term ``university sponsored licensee'' means a
company licensed under section 345 in which a single university
or consortium of universities has at least a 25 percent
investment interest in the private equity capital of such
licensee; and
(14) the term ``venture capital'' means consideration for
such--
(A) common stock;
(B) preferred stock;
(C) debt with equity features which may include
equity warrants or rights to convert into common stock
and which provides for interest payments contingent
upon and limited to the extent of earnings; or
(D) other financing,
as the Under Secretary determines to be substantially similar
to equity financing, issued by a qualified business concern.
SEC. 343. ESTABLISHMENT AND PURPOSE.
(a) Establishment.--There is established within the Technology
Administration of the Department of Commerce a national program to
stimulate and supplement the availability of long-term investment
capital for the formation, development, and growth of qualified
business concerns throughout the United States. The Secretary, through
the Under Secretary, shall, through such program, provide for the
selection, licensing, monitoring, and financial and technical support
of professionally managed technology investment companies which in turn
shall provide financial, management, and technical assistance to
qualified business concerns, with preference given to satisfying the
seed and early-stage financing needs of such concerns that are not
being met by other sources on reasonable terms.
(b) Purposes.--The purposes of this subtitle are--
(1) to contribute to United States economic
competitiveness, employment, and prosperity;
(2) to promote the advancement, maturation, and application
of critical and other advanced technologies;
(3) to supplement and stimulate long-term investment in
qualified business concerns; and
(4) to encourage and facilitate the formation and growth of
professionally managed technology investment companies
throughout the United States that will give preference to
satisfying the capital needs of qualified business concerns,
especially during their early stages of development.
(c) Responsibilities.--(1) In carrying out this subtitle, the
Secretary, acting through the Under Secretary, and subject to the
availability of appropriations, shall--
(A) consult with and, to the extent permitted by law,
utilize the capabilities of other executive agencies, as
appropriate, to ensure the efficient and effective
implementation of this subtitle;
(B) explore, with other executive agencies, ways to avoid
duplication of effort by consolidating the administration of
the program established by this subtitle with any other similar
Federal program, and as part of such consolidation may delegate
administrative functions, as necessary and appropriate, to
another executive agency;
(C) consult with the Secretary of Energy, the Secretary of
Defense, and the Administrator of the National Aeronautics and
Space Administration, on all policy matters related to the
Civilian Technology Development Program that deal with
development or utilization of technologies developed by those
agencies;
(D) consult with State governments to ensure that the
existing programs run by or chartered by State governments
which seek to accomplish purposes similar to those stated in
subsection (b) are encouraged and not undermined by the
implementation of this subtitle; and
(E) explore with State governments ways in which programs
currently run by or chartered by State governments which seek
to accomplish purposes similar to those stated in subsection
(b) can serve as models for the Secretary or be used to ensure
the efficient and effective implementation of this subtitle.
(2) To the extent permitted by law, other executive agencies shall
cooperate with the Under Secretary in carrying out this subtitle.
(d) Operating Plan.--The Secretary, acting through the Under
Secretary, shall prepare (in consultation with the Advisory Committee
established under section 344, other appropriate executive agencies,
the States, United States companies, the financial community, and other
appropriate parties) and submit to the Congress on or about November 1,
1993, an operating plan to carry out this subtitle. In preparing such
plan, the Secretary shall consider and evaluate alternative approaches
to achieving the purposes of this subtitle and shall develop
recommendations, as appropriate, to fulfill the purposes of this
subtitle in the most effective and efficient manner achievable. Such
evaluations and recommendations shall be included in the plan submitted
under this subsection.
(e) Outreach to Economically Depressed Areas.--The Secretary,
acting through the Under Secretary, shall seek to ensure that qualified
business concerns located in areas determined by the Secretary to have
a depressed economy, or a significant concentration of defense-related
industries, or chronically high unemployment, are notified of the
availability of financial assistance through the program established
under this subtitle and, to the extent practicable, to encourage and
facilitate the participation of such qualified business concerns in
such program.
(f) Effective Date.--Except as provided in subsection (d) and in
sections 344 and 351(a), the provisions of this subtitle shall take
effect on October 1, 1994.
SEC. 344. ADVISORY COMMITTEE.
(a) Establishment.--There is established a Civilian Technology
Development Advisory Committee (in this section referred to as the
``CTD Advisory Committee'').
(b) Composition.--The CTD Advisory Committee shall be composed of 7
members, appointed by the Under Secretary from among private
individuals who, because of their experience and accomplishments in
technology development, maturation, and adoption, business development,
venture capital, finance, or other relevant areas, are exceptionally
qualified to perform the duties of the CTD Advisory Committee. The
Under Secretary shall designate 1 member to serve as chairman.
(c) Duties.--The duties of the CTD Advisory Committee shall include
advising the Under Secretary on all matters related to policy,
planning, execution, and evaluation of the program established under
this subtitle.
(d) Termination.--Section 14 of the Federal Advisory Committee Act
shall not apply to the CTD Advisory Committee.
SEC. 345. ORGANIZATION AND LICENSING.
(a) In General.--Any incorporated body, limited partnership, or
State instrumentality organized and chartered or otherwise existing
under State law for the purpose of performing the functions and
conducting the activities contemplated under this subtitle, that
possesses the powers, capabilities, and expertise reasonably necessary
to perform such functions and conduct such activities, may apply for a
license under this subtitle in such form and manner as the Under
Secretary may prescribe.
(b) Articles.--The articles of any applicant shall specify in
general terms the objects for which the applicant is formed, the name
assumed by such applicant, the area or areas in which its operations
are to be carried on, the place where its principal office is to be
located, and the amount and classes of its shares of capital stock.
Such articles may contain any other provisions not inconsistent with
this subtitle that the applicant may see fit to adopt for the
regulation of its business and the conduct of its affairs. Such
articles and any amendments thereto adopted from time to time shall be
subject to the approval of the Under Secretary.
(c) Business Plan.--The business plan of any applicant shall
specify in general terms--
(1) how the applicant proposes to achieve the objects for
which it is formed, to operate and govern its business, and to
fulfill the purposes and satisfy the requirements of this
subtitle;
(2) the board members or general partners and the
management and professional staff of the applicant, and the
professional training, experience, reputation, and investment
performance record, if any, of each such individual, along with
a description of the applicant's current and proposed
management structure;
(3) all current or committed private investors in the
applicant, together with the amount, terms, conditions, and
conveyances associated with such investment, and appropriate
background information on each private investor; and
(4) such other information as the Under Secretary may
require.
Such business plan and any material amendments thereto adopted from
time to time shall be subject to the approval of the Under Secretary.
(d) Approval of Articles and Business Plan; Licensing.--The
articles and business plan of an applicant for a license shall be
forwarded to the Under Secretary for consideration and approval or
disapproval. In determining whether to approve a prospective licensee's
articles and business plan and permit it to operate under the
provisions of this subtitle, the Under Secretary shall give due regard,
among other things, to the general business reputation, character,
suitability, and demonstrated ability, experience, and performance in
the development, growth, and financing of qualified business concerns,
of the proposed owners and management of the prospective licensee, and
the likelihood of successful operations of the prospective licensee
including adequate profitability and financial soundness. After
consideration of all relevant factors, if the Under Secretary approves
the company's articles and business plan and determines that the
applicant satisfies or will satisfy the requirements of this subtitle,
the Under Secretary may approve the company to operate under the
provisions of this subtitle and issue the company a license for such
operation.
SEC. 346. CAPITAL AND MANAGEMENT REQUIREMENTS.
(a) Capital.--(1) The private equity capital of a licensee shall be
adequate to ensure a reasonable prospect that the licensee will be
operated soundly and profitably, and managed actively and prudently in
accordance with its articles and business plan. Such private equity
capital shall not be less than $5,000,000, except that, in the case of
a State sponsored licensee or a university sponsored licensee, such
private equity capital shall not be less than $2,500,000. At the time
of issuance of a license, not less than 75 percent of the private
equity capital of the licensee shall be available or committed to be
available for new investment in accordance with this subtitle.
(2) To the extent permitted by other law, including the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.),
private and public pension funds may contribute to the private equity
capital of a licensee without restriction as to the amount of such
contribution.
(3) State and local government entities may contribute not more
than 40 percent of the total private equity capital of a licensee.
(4) The aggregate amount of shares in any such licensee or
licensees which may be owned or controlled by any stockholder, or by
any group or class of stockholders, may be limited by the Under
Secretary.
(b) Management.--The management and operational control of a
licensee shall be carried out by suitable private individuals who
possess the professional training, experience, and capabilities
reasonably necessary to achieve the purposes of this subtitle.
SEC. 347. FINANCING FOR LICENSEES.
(a) Authority To Purchase and Guarantee Preferred Securities.--To
encourage and facilitate the formation and growth of licensees and
qualified business concerns, the Under Secretary may purchase or commit
to purchase nonvoting preferred securities, with or without equity
warrants, issued by a licensee, or guarantee, or commit to guarantee,
the payment of 100 percent of the redemption price of and dividends on
such preferred securities, to the extent provided in appropriations
Acts, if the licensee has demonstrated to the satisfaction of the Under
Secretary that it is financially sound and that it has complied with or
will comply with the requirements of this subtitle, the terms of its
license, and any rule, regulation, or order issued under this subtitle.
Such purchases and guarantees shall constitute direct loans and loan
guarantees within the meaning of paragraphs (1) and (3) of section 502
of the Federal Credit Reform Act of 1990, respectively. A trust or pool
acting on behalf of the Under Secretary may purchase preferred
securities that are guaranteed under this subsection.
(b) Terms and Conditions of Preferred Securities.--(1) Guarantees
and purchases of preferred securities, or commitments to make such
guarantees and purchases, under this section may be made on such terms
and conditions as the Under Secretary shall establish by regulation or
set forth in contract to ensure compliance with this subtitle and to
protect the interests of taxpayers and the United States in the event
of default or otherwise. For purposes of this paragraph, the Under
Secretary shall by regulation define the term ``default''.
(2)(A) Except as provided in subparagraph (B), preferred securities
issued under this section shall be senior in priority for all purposes
to all non-Federal equity interests in a licensee unless the Under
Secretary, in the exercise of reasonable investment prudence and in
considering the financial soundness of the licensee, determines
otherwise.
(B) The equity interests of a university or consortium of
universities, or of a State or instrumentality of a State, in a
licensee shall be equal in priority to Federal equity interests in such
licensee for all purposes unless the Under Secretary, in the exercise
of reasonable investment prudence and in considering the financial
soundness of the licensee, determines otherwise.
(3) Preferred securities issued under this section shall be
redeemed by the issuer not later than 10 years after their date of
issuance for an amount equal to 100 percent of the original issue price
plus any accrued and unpaid dividends. In order to facilitate the
orderly liquidation of a licensee's investments, redemption of such
preferred securities may be extended by mutual consent for no more than
5 years beyond such expiration date.
(4) Preferred securities issued under this section shall pay
dividends at a rate determined by the Secretary of the Treasury at the
time of issuance to equal the then current average market yield on
outstanding marketable debt obligations of the United States with
remaining periods to maturity comparable to the time to required
redemption of such preferred securities, plus such additional charge,
if any, toward covering expected defaults and reasonable administrative
costs of carrying out this subtitle as the Under Secretary may
determine to be reasonable and appropriate. Such additional charge
shall not exceed 2 percent.
(5) Dividends on preferred securities issued under this section
shall be cumulative and preferred and paid out of net realized earnings
and returns of capital available for distribution, as defined by the
Under Secretary by regulation.
(6) The payment of dividends on preferred securities issued under
this section may be deferred by the issuer until such time as, and to
the extent that, the issuer realizes earnings and returns of capital
available for distribution. Accumulated and unpaid dividends on such
preferred securities shall be paid by the issuer before or at the time
of redemption of the preferred securities and before any distribution
of net realized earnings and returns of capital of the issuer to its
non-Federal equity investors, except as provided in subsection (e)(2)
(B) and (C). With respect to preferred securities issued under this
section to a party other than the Under Secretary, during the time of
any deferral under this paragraph, the Under Secretary shall make, on
behalf of the issuer, required dividend payments to the holder of the
preferred securities, its agents or assigns, or the appropriate central
registration agent, if any. The authority to make dividend payments
provided in this paragraph shall be limited to the extent of amounts
provided in advance in appropriations Acts for such purposes.
(7) For purposes of this subsection, the term ``dividends'' means
dividends on preferred stock and returns on preferred limited
partnership interests or other similar securities, as defined by the
Under Secretary by regulation.
(c) Limitations and Restrictions.--(1) The total principal amount
of debt, as evidenced by notes, bonds, debentures, or certificates of
indebtedness, plus the total face amount of preferred securities
purchased or guaranteed by the Under Secretary under subsection (a),
issued and outstanding from a licensee shall not exceed 200 percent of
the private equity capital of the licensee.
(2) The total face amount of preferred securities purchased or
guaranteed by the Under Secretary under subsection (a) and outstanding
from a licensee or a combination of licensees which are commonly
controlled, as defined and determined by the Under Secretary, shall not
exceed $50,000,000.
(3)(A) If preferred securities issued under this section are
outstanding, then the issuing licensee shall be subject to the
following restrictions:
(i) The total principal amount of debt, as evidenced by
notes, bonds, debentures, or certificates of indebtedness, of a
licensee issued and outstanding may not exceed 50 percent of
the private equity capital of the licensee.
(ii) The annual management expenses of a licensee shall not
exceed an amount which the Under Secretary determines to be
reasonable and appropriate.
(iii) The aggregate amount of obligations and securities
acquired and for which commitments may be issued by a licensee
for any single qualified business concern shall not exceed
$2,000,000 or 20 percent of the private equity capital of such
licensee, whichever is greater, unless the Under Secretary
approves a greater amount.
(B) For purposes of this paragraph, the term ``management
expenses'' includes expenses incurred in the normal course of
operations, but shall not include the cost of legal, accounting, and
consulting services provided by outside parties and by affiliates of
the licensee which are not normal practice in making and monitoring
investments consistent with the purposes of this subtitle.
(d) Use of Capital by Licensees.--(1) A licensee issuing preferred
securities under this section shall invest or commit to invest--
(A) an amount equal to the face value of such preferred
securities that are outstanding; plus
(B) an amount of its private equity capital equal to 50
percent of the amount described in subparagraph (A),
in the venture capital of qualified business concerns in accordance
with section 349.
(2) At least 50 percent of the amount of investments required under
paragraph (1) shall be for seed and early stage financing, as defined
by the Under Secretary by regulation. The Under Secretary may alter the
percentage requirement under this paragraph to the extent necessary, in
the determination of the Under Secretary, to achieve the purposes of
this subtitle and maintain prudent investment diversification.
(3) Proceeds to a licensee derived from preferred securities issued
under this section may be used by the issuer to redeem any preferred
securities issued under this section that have been outstanding at
least 5 years, as provided in subsection (b)(3).
(4) Proceeds to a licensee derived from preferred securities issued
under this section that have not been invested pursuant to paragraphs
(1) and (2) or used for redemptions pursuant to paragraph (3) and are
not reasonably needed for the operations of the licensee shall be
invested in direct obligations of, or obligations guaranteed as to
principal and interest by, the United States, or in certificates of
deposit maturing within one year or less, issued by any institution the
accounts of which are insured by the Federal Deposit Insurance
Corporation.
(e) Profit Distribution by Licensees.--(1) Any distribution of net
realized earnings and returns of capital made by a licensee that
exceeds amounts required for the purposes stated in paragraph (2) shall
be distributed pro rata to all investors entitled to such
distributions. The United States shall receive no funds under this
paragraph.
(2)(A) Except as provided in subparagraphs (B) and (C), any
distribution of net realized earnings and returns of capital made by a
licensee shall first be used to pay accumulated and unpaid dividends
owed on outstanding preferred securities issued under this section and
to satisfy the redemption requirements of subsection (b)(3).
(B) For purposes of subparagraph (A), the redemption requirements
of subsection (b)(3) shall be considered to be satisfied if necessary
and appropriate actions, as determined by the Under Secretary, have
been undertaken by the licensee to ensure that such requirements will
be satisfied.
(C) If a licensee is operating as a limited partnership or as a
corporation described in subchapter S of chapter 1 of subtitle A of the
Internal Revenue Code of 1986 or an equivalent pass-through entity for
tax purposes, it may distribute to the partners or shareholders an
amount equal to the estimated amount of Federal, State, and local
income taxes due from such partners and shareholders on their share of
undistributed taxable income for the current taxable year before
payments described in subparagraph (A) are made.
(f) Use of Payments to the United States.--Amounts received by the
United States from the payment of dividends and the redemption of
preferred securities pursuant to this section, and fees paid to the
United States by a licensee pursuant to this subtitle, shall be
deposited in an account established by the Under Secretary and shall be
available solely for carrying out this subtitle, to the extent provided
in advance in appropriations Acts.
SEC. 348. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
(a) Authority To Issue Trust Certificates.--The Under Secretary is
authorized to issue trust certificates representing ownership of all or
a fractional part of preferred securities issued by licensees and
guaranteed by the Under Secretary under this subtitle. Such trust
certificates shall be based on and backed by a trust or pool approved
by the Under Secretary and composed of preferred securities and such
other contractual obligations as the Under Secretary may undertake to
facilitate the sale of such trust certificates.
(b) Guarantee of Trust Certificates.--The Under Secretary is
authorized, upon such terms and conditions as are deemed appropriate,
to guarantee the timely payment of the principal of and interest on
trust certificates issued by the Under Secretary or his agent for
purposes of this section. Such guarantee shall be limited to the extent
of the redemption price of and dividends on the preferred securities,
plus any related contractual obligations, which compose the trust or
pool.
(c) Prepayments and Redemptions.--In the event that preferred
securities or contractual obligations in such trust or pool are
redeemed or extinguished, either voluntarily or involuntarily, the
guarantee of timely payment of principal and interest on the trust
certificates shall be reduced in proportion to the amount of redemption
price and dividends such redeemed preferred security or extinguished
contractual obligation represents in the trust or pool. Dividends or
partnership profit distributions on such preferred securities and
related contractual obligations, shall accrue and be guaranteed by the
Under Secretary only through the date of payment on the guarantee.
During the term of the trust certificate, it may be called for
redemption, whether voluntary or involuntary, of all preferred
securities residing in the pool.
(d) Fees.--The Under Secretary may collect fees for a guarantee
under this section that are reasonable and customary.
(e) Payment of Claims.--(1) In the event the Under Secretary pays a
claim under a guarantee issued under this section, it shall be
subrogated fully to the rights satisfied by such payment.
(2) No State or local law, and no Federal law, shall preclude or
limit the exercise by the Under Secretary of ownership rights in the
preferred securities residing in a trust or pool against which trust
certificates are issued.
(f) Registration and Intermediary Operations.--(1) The Under
Secretary shall provide for a central registration of all trust
certificates sold pursuant to this section. Such central registration
shall include with respect to each sale, identification of each
licensee, the interest rate or dividend rate paid by the licensee,
commissions, fees, or discounts paid to brokers and dealers in trust
certificates, identification of each purchaser of the trust
certificate, the price paid by the purchaser for the trust certificate,
the interest rate paid on the trust certificate, the fees of any agent
for carrying out the functions described in paragraph (2), and such
other information as the Under Secretary deems appropriate.
(2) The Under Secretary shall contract with an agent or agents to
carry out on behalf of the Under Secretary the pooling and the central
registration functions of this section including, notwithstanding any
other provision of law, maintenance on behalf of and under the
direction of the Under Secretary, such commercial bank accounts as may
be necessary to facilitate trusts or pools backed by securities
guaranteed or purchased under this subtitle, and the issuance of trust
certificates to facilitate such poolings. Such agent or agents shall
provide a fidelity bond or insurance in such amounts as the Under
Secretary determines to be necessary to fully protect the interests of
the Federal Government.
(3) Prior to any sale, the Under Secretary shall require the seller
to disclose to a purchaser of a trust certificate issued pursuant to
this section, information on the terms, conditions, and yield of such
instrument.
SEC. 349. VENTURE CAPITAL FOR QUALIFIED BUSINESS CONCERNS.
Each licensee may provide venture capital to qualified business
concerns, in such manner and under such terms as the licensee may fix
in accordance with the regulations of the Under Secretary.
SEC. 350. OPERATION.
(a) Cooperation.--Wherever practicable the operations of a
licensee, including the generation of business, may be undertaken in
cooperation with banks or other licensees, investors, or lenders,
incorporated or unincorporated, and any servicing or initial
investigation required for loans or acquisitions of securities by the
licensee under the provisions of this subtitle may be handled through
such banks or other licensees, investors, or lenders on a fee basis.
Any licensee may receive fees for services rendered to such banks and
other licensees, investors, and lenders.
(b) Advisory Services.--Each licensee may make use, wherever
practicable, of the advisory services of the Federal Reserve System and
of the Department of Commerce which are available for and useful to
industrial and commercial businesses, and may provide consulting and
advisory services on a fee basis and have on its staff persons
competent to provide such services. A licensee may not charge fees for
such services that are provided to a qualified business concern in
which it has an investment.
SEC. 351. REGULATIONS; LIABILITY.
(a) Regulations.--The Under Secretary is authorized to prescribe
regulations governing the operations of licensees, and to carry out the
provisions of this subtitle, in accordance with the purposes of this
subtitle.
(b) Liability of the United States.--Nothing in this subtitle or in
any other provision of law imposes any liability on the United States
with respect to any obligations entered into, or stocks issued, or
commitments made, by any licensee operating under the provisions of
this subtitle.
SEC. 352. TECHNICAL ASSISTANCE FOR LICENSEES AND QUALIFIED BUSINESS
CONCERNS.
(a) Technical Assistance.--The Secretary shall, upon request,
provide technical assistance and services, as appropriate and needed,
to licensees and to qualified business concerns receiving financial
assistance under this subtitle, and shall ensure that such qualified
business concerns have ready access to appropriate assistance available
under title III of the Stevenson-Wydler Technology Innovation Act of
1980, or under any other Act, in order to aid such qualified business
concerns in their development or utilization of critical or other
advanced technologies. Technical assistance and services under this
subsection shall include providing licensees and qualified business
concerns with--
(1) an assessment of the technological and scientific
feasibility of a project, or an analysis of a specific field of
technical or scientific endeavor;
(2) improved access to technology developed by the
Institute and assistance in obtaining access to technology
developed by other Federal agencies and laboratories;
(3) expert analysis of the economics of technology
development undertaken by a qualified business concern; and
(4) any other assistance or service that the Under
Secretary determines, after consultation with licensees and
qualified business concerns, is necessary and appropriate to
enhance prospects for success and to reduce technical risk for
licensees and qualified business concerns.
(b) Fees.--The Secretary may charge fees for services and technical
assistance provided under subsection (a) in amounts sufficient to cover
the reasonable cost of such services and assistance. The Secretary may
waive fees established under this subsection.
SEC. 353. PERFORMANCE MEASURES; ANNUAL REPORT.
(a) Performance Measures.--The performance of the program
established under this subtitle shall be evaluated relative to progress
made in achieving its purposes and shall be measured in relevant and
meaningful terms such as significant accomplishments in advancing
technology, businesses formed and financed, jobs created, taxes
generated, licenses granted and maintained, capital invested, and other
criteria the Under Secretary may deem appropriate.
(b) Annual Report.--The Under Secretary shall prepare, in
consultation with the advisory committee established under section 344,
and submit annually a report to the Congress containing a full and
detailed account of operations under this subtitle. Such report shall
include--
(1) an assessment of progress made in achieving the
purposes of this subtitle;
(2) performance measures established under subsection (a);
(3) a list of licensees along with their location, area of
operations, investment objectives, capitalization, and net
asset value, both at cost and at current fair market value;
(4) an audit setting forth the amount, type, recipient, and
source of disbursements, receipts, and losses sustained by the
Federal Government as a result of operations under this
subtitle during the preceding fiscal year and since inception
of the program;
(5) the Under Secretary's plans to ensure the provision of
licensee financing to all areas of the country and to all
qualified business concerns, and plans to notify and to
encourage and facilitate the participation of qualified
business concerns as required by section 343(e), including
steps taken to accomplish those goals;
(6) steps taken by the Under Secretary to carry out this
subtitle and to ensure compliance with statutory and regulatory
standards relating thereto; and
(7) recommendations with respect to program changes,
statutory changes, and other matters, including tax incentives,
to improve and facilitate the operations of licensees and to
encourage the use of their financing facilities by qualified
business concerns.
SEC. 354. REPORTS, INVESTIGATIONS, AND EXAMINATIONS.
(a) Reporting Requirements.--Each license issued under this
subtitle shall require a licensee with outstanding preferred securities
to provide the Under Secretary such information, including companies
financed, disbursements made along with associated terms and
conditions, receipts, portfolio valuation and net asset value at cost
and at estimated fair market value, and other financial statements,
that the Under Secretary may require to satisfy the requirements of
section 353(b) and to determine, in a timely manner, compliance with
this subtitle and regulations promulgated under this subtitle. Such
reporting shall be--
(1) except as otherwise provided in this subsection,
consistent with the reporting practices and standards of the
venture capital industry;
(2) uniform for all licensees;
(3) submitted annually to the Under Secretary, with
valuation and other information provided more frequently as the
Under Secretary may require; and
(4) certified by the Board of Directors or the General
Partners of the licensee.
The Under Secretary may exempt from making such reports any licensee
which is registered under the Investment Company Act of 1940 only to
the extent necessary to avoid duplication in reporting requirements.
(b) Valuations.--The Under Secretary shall, by regulation,
establish guidelines for estimating the fair market value of
investments held by a licensee as required under subsection (a). The
board of directors of a corporate licensee and the general partners of
a partnership licensee shall have the sole responsibility for making a
good faith determination of the fair market value of investments held
by such licensee, based on guidelines established under this
subsection.
(c) Investigations.--The Secretary may undertake investigations to
determine whether a licensee or any other person has engaged or is
about to engage in any acts or practices which constitute or will
constitute a violation of any provision of this subtitle, or of any
rule, regulation, or order issued under this subtitle. The Secretary
shall permit any person to file a statement in writing, under oath or
otherwise as the Secretary shall determine, as to all the facts and
circumstances concerning the matter to be investigated. For the purpose
of any investigation, the Secretary is empowered to administer oaths
and affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of any books, papers, and
documents which are relevant to the inquiry.
(d) Examinations.--Each licensee shall be subject to examinations
made at the discretion and direction of the Under Secretary by
examiners selected or approved by, and under the supervision of, the
Under Secretary. The Under Secretary may enter into contracts with
private parties to perform such examinations. The cost of such
examinations, including the compensation of the examiners, may in the
discretion of the Under Secretary be assessed against the licensee
examined and when so assessed shall be paid by such licensee.
SEC. 355. REVOCATION AND SUSPENSION OF LICENSES; CEASE AND DESIST
ORDERS.
(a) Grounds for Revocation or Suspension.--A license may be revoked
or suspended by the Secretary--
(1) for willful or repeated violation of any provision of
this subtitle or any rule, regulation, or order issued
thereunder; or
(2) if the licensee no longer serves the purposes for which
it was granted a license.
(b) Cease and Desist Orders.--Where a licensee or any other person
has not complied with any provision of this subtitle, or of any rule,
regulation, or order issued thereunder, or is engaging or is about to
engage in any acts or practices which constitute or will constitute a
violation of such provision, rule, regulation, or order, the Secretary
may order such licensee or other person to cease and desist from such
action or failure to act. The Secretary may further order such licensee
or other person to take such action or to refrain from such action as
the Secretary considers necessary to ensure compliance with such
provisions, rules, regulations, or orders. The Secretary may also
suspend the license of a licensee, against whom an order has been
issued, until such licensee complies with such order.
(c) Subpoenas.--The Secretary may require by subpoenas the
attendance and testimony of witnesses and the production of all books,
papers, and documents relating to the hearing from any place in the
United States.
(d) Enforcement.--If any licensee or other person against which or
against whom an order is issued under this section fails to obey the
order, the Secretary may apply to the district court of the United
States for the district where the licensee has its principal place of
business, for the enforcement of the order.
SEC. 356. INJUNCTIVE RELIEF.
(a) In General.--If the Secretary determines that a licensee or any
other person has engaged, or is about to engage, in any acts or
practices which constitute a violation of any provision of this
subtitle, or of any rule, regulation, or order issued under this
subtitle, the Secretary may apply to the appropriate district court of
the United States for injunctive relief.
(b) Receivership.--Whenever it is necessary in order to achieve the
purposes of injunctive relief granted under subsection (a), and upon
proper application by the Secretary, the court may order the attachment
of assets of a licensee and may appoint a receiver to administer such
assets under the direction of the court.
SEC. 357. CONFLICTS OF INTEREST.
For the purpose of controlling conflicts of interest which may be
detrimental to qualified business concerns, to licensees, to the
shareholders or partners of either, or to the purposes of this
subtitle, the Under Secretary shall adopt regulations to govern
transactions with any officer, director, shareholder, or partner of any
licensee, or with any person or concern, in which any interest, direct
or indirect, financial or otherwise, is held by any officer, director,
shareholder, or partner of (1) any licensee, or (2) any person or
concern with an interest, direct or indirect, financial or otherwise,
in any licensee. Such regulations shall include appropriate
requirements for public disclosure (including disclosure in the
locality most directly affected by the transaction) necessary to the
purposes of this section.
SEC. 358. REMOVAL OR SUSPENSION OF DIRECTORS AND OFFICERS.
(a) Grounds.--The Secretary, after an opportunity for agency
hearing, may serve upon any director or officer of a licensee a written
notice of its intention to remove such director or officer from office,
temporarily or permanently, whenever in the opinion of the Secretary
such director or officer--
(1) has willfully and knowingly--
(A) committed any substantial violation of this
subtitle or any rule, regulation, or order issued under
this subtitle; or
(B) committed or engaged in any act, omission, or
practice which constitutes a substantial breach of his
fiduciary duty as such director or officer,
and that such violation or such breach of fiduciary duty is one
involving personal dishonesty on the part of such director or
officer; or
(2) has been convicted of a felony involving dishonesty or
breach of trust.
(b) Hearing.--A hearing under this section shall be on the record
and shall be held in the Federal judicial district or in the territory
in which the principal office of the licensee is located unless the
party afforded the hearing consents to another place. A hearing under
this section shall be fixed for a date not earlier than 30 days nor
later than 60 days after the date of service of such notice, unless an
earlier or a later date is set by the Secretary at the request of (1)
such director or officer and for good cause shown, or (2) the Attorney
General of the United States. Unless such director or officer shall
appear at the hearing in person or by a duly authorized representative,
he shall be deemed to have consented to the issuance of an order of
such removal.
SEC. 359. VIOLATIONS.
(a) Participation.--Whenever a licensee commits a violation of this
subtitle, or any rule, regulation, or order issued under this subtitle,
such violation shall be deemed to be also a violation on the part of
any person who, directly or indirectly, authorizes, orders,
participates in, or causes, brings about, counsels, aids, or abets in
the commission of such violation.
(b) Breach of Fiduciary Duty.--It shall be a violation of this
subtitle for any officer, director, employee, agent, or other
participant in the management or conduct of the affairs of a licensee
to engage in any act or practice, or to omit any act, in breach of his
fiduciary duty as such officer, director, employee, agent, or
participant, if, as a result thereof, the licensee has suffered or is
in imminent danger of suffering financial loss or other damage.
(c) Disqualification.--Except with the written consent of the
Secretary, it shall be a violation of this subtitle for any person to
take office, or to continue to serve, as an officer, director, or
employee of a licensee, or to become or continue to serve as an agent
or participant in the conduct of the affairs or management of a
licensee, if such person--
(1) has been convicted of a felony, or any other criminal
offense involving dishonesty or breach of trust; or
(2) has been found civilly liable in damages, or has been
permanently or temporarily enjoined by an order, judgment, or
decree of a court of competent jurisdiction, by reason of any
act or practice involving fraud or breach of trust.
SEC. 360. CIVIL PENALTIES.
Any person who is found by the Secretary, after notice and
opportunity to be heard on the record in accordance with section 554 of
title 5, United States Code, to have committed a violation of this
subtitle or any rule, regulation, or order issued under this subtitle
shall be liable to the United States for a civil penalty of not more
than $1,000 for each violation. Each day of a continuing violation
shall constitute a separate violation. The amount of such civil penalty
shall be assessed by the Secretary by written notice. The Secretary may
compromise, modify, or remit, with or without conditions, any civil
penalty which is subject to imposition or which has been imposed under
this section.
SEC. 361. ANTITRUST SAVINGS CLAUSE.
This subtitle shall not be construed to modify, impair, or
supersede the operation of the antitrust laws. For purposes of this
section, the term ``antitrust laws'' has the meaning given it in
subsection (a) of the first section of the Clayton Act (15 U.S.C.
12(a)), except that such term includes the Act of June 19, 1936 (49
Stat. 1526; 15 U.S.C. 13 et seq.), commonly known as the Robinson
Patman Act, and section 5 of the Federal Trade Commission Act (15
U.S.C. 45) to the extent that such section 5 applies to unfair methods
of competition.
TITLE IV--MISCELLANEOUS
SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY ADVISORY BOARD.
(a) Establishment.--There is established a Department of Commerce
Technology Advisory Board (in this section referred to as the
``Advisory Board'') to assist the Technology Administration in the
performance of its functions.
(b) Composition.--The Advisory Board shall be composed of at least
17 members, appointed by the Under Secretary from among individuals
who, because of their experience and accomplishments are exceptionally
qualified to provide advice to the Under Secretary on the plans,
programs, and policy of the Technology Administration. The Under
Secretary shall make an effort to ensure the appointment of socially
and economically disadvantaged individuals (within the meaning of
section 8(a) (5) and (6) of the Small Business Act, and including
women) to the Advisory Board. The Under Secretary shall designate 1
member to chair the Advisory Board. Membership of the Advisory Board
shall include representatives of--
(1) United States small businesses;
(2) other United States manufacturers;
(3) research universities and independent research
institutes;
(4) State and local government agencies involved in
technology extension;
(5) national laboratories;
(6) industrial, worker, and professional organizations;
(7) financial organizations; and
(8) computing and communications equipment and services
providers.
(c) Duties.--The duties of the Advisory Board shall include
advising the Secretary, the Under Secretary, and the Director
regarding--
(1) the development of policies and options for
implementation that the Advisory Board considers essential to
technology creation, development, and adoption, including
policies that would benefit small businesses;
(2) the development and rapid application of critical and
other advanced technologies, including advanced manufacturing
technologies;
(3) the development of computer and communications support
services for advanced manufacturing; and
(4) the planning, execution, and evaluation of programs
under the authority of the Technology Administration.
(d) Meetings.--(1) The chairman shall call the first meeting of the
Advisory Board not later than 90 days after the date of enactment of
this Act.
(2) The Advisory Board shall meet at least once every 6 months, and
at the call of the Under Secretary.
(e) Travel Expenses.--Members of the Advisory Board, other than
full-time employees of the United States, shall be allowed travel
expenses in accordance with subchapter I of chapter 57 of title 5,
United States Code, while engaged in the business of the Advisory
Board.
(f) Consultation.--In carrying out this section, the Under
Secretary shall consult with other agencies, as appropriate.
(g) Termination.--Section 14 of the Federal Advisory Committee Act
shall not apply to the Advisory Board.
(h) Secretarial Discretion.--Notwithstanding any other provision of
this section, the Secretary shall have the discretion to decide whether
to establish the Advisory Board or create a more cost-effective way to
achieve the goal of closer cooperation with industry. If the Secretary
exercises such discretion and establishes an alternative mechanism, the
Under Secretary shall make an effort to ensure the participation of
socially and economically disadvantaged individuals (within the meaning
of section 8(a)(5) and (6) of the Small Business Act, and including
women) in the alternative mechanism.
SEC. 402. INTERNATIONAL STANDARDIZATION.
(a) Findings.--The Congress finds that--
(1) private sector consensus standards are essential to the
timely development of competitive products;
(2) Federal Government contribution of resources and more
active participation in the voluntary standards process in the
United States can increase the quality of United States
standards, increase their compatibility with the standards of
other countries, and ease access of products manufactured by
United States manufacturers to foreign markets; and
(3) the Federal Government, working in cooperation with
private sector organizations including trade associations,
engineering societies, and technical bodies, can effectively
promote United States Government use of United States consensus
standards and, where appropriate, the adoption and United
States Government use of international standards.
(b) Standard Pilot Program.--Section 104(e) of the American
Technology Preeminence Act of 1991 is amended--
(1) by inserting ``(1)'' before ``Pursuant to the'';
(2) by striking ``matching funds'' and inserting in lieu
thereof ``financial contributions deemed appropriate by the
Secretary''; and
(3) by adding at the end the following new paragraph:
``(2) As necessary and appropriate, the Institute shall expand the
program established under section 112 of the National Institute of
Standards and Technology Authorization Act for Fiscal Year 1989 (15
U.S.C. 272 note) by extending the existing program to include other
countries that request assistance with standards-related activities
from official representatives of the United States Government. The
Institute may enter into additional contracts with non-Federal
organizations representing United States companies, as such term is
defined in section 28(d)(9)(B) of the National Institute of Standards
and Technology Act (15 U.S.C. 278n(d)(9)(B)) or with United States-
based professional societies who participate in the development of
standards. Such contracts shall require cost sharing between Federal
and non-Federal sources for such purposes. In awarding such contracts,
the Institute shall seek to promote and support the dissemination of
United States technical standards to additional foreign countries and
shall seek, as the Director deems appropriate, to promote the adoption
of international standards supported by United States industry, and
shall seek to assist private sector professional societies which
participate in the development of standards in expediting the
development of domestic standards which enable the introduction of
technologies, products, or technology-based services which are being
delayed due to the lack of available standards. The Institute and such
contractors shall, in carrying out the preceding sentence, cooperate
with governmental bodies, private organizations including standards
setting organizations and industry, and multinational institutions that
promote economic development. The organizations receiving such
contracts may establish training programs to bring to the United States
foreign standards experts for the purpose of receiving in-depth
training in the United States standards system.''.
(c) Report on Standards.--(1) Section 508(a) of the American
Technology Preeminence Act of 1991 (15 U.S.C. 3701 note) is amended--
(A) by inserting ``standards development and
international'' after ``a thorough review of international'';
(B) by redesignating paragraphs (1) through (5) as
paragraphs (2) through (6), respectively; and
(C) by inserting before paragraph (2), as so redesignated
by subparagraph (B) of this paragraph, the following new
paragraph:
``(1) Current and potential future roles of the Federal
Government in the development and promulgation of domestic and
global product and process standards.''.
(2) The Secretary, in consultation with the Institute and the
Department of Commerce Technology Advisory Board established under
section 401 of this Act and with, as appropriate, the active
participation of the private sector, shall submit to the Congress a
report describing the appropriate roles of the Department of Commerce
in aid to United States companies in achieving conformity assessment
and accreditation and otherwise qualifying their products in foreign
markets, through the development and promulgation of domestic and
global product and quality standards, and through the implementation of
conformity assessment and accreditation procedures based upon such
standards, including a discussion of the extent to which each of the
policy options provided in the March 1992 Office of Technology
Assessment report, entitled ``Global Standards'', contributes to
meeting the goals of--
(A) increasing the international adoption of standards
beneficial to United States industries; and
(B) improving the coordination of United States
representation to international standards setting bodies.
(3) The report shall also describe emerging product and market
areas which can be assisted by shortening the time required for the
development of standards and make recommendations on contributions the
Department of Commerce can make to improving the timeliness of
standards development.
SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.
(a) Section 108(c)(3) of the Stevenson-Wydler Technology Innovation
Act of 1980, as so redesignated by section 206(b)(3) of this Act, is
amended to read as follows:
``(3) No award shall be made within any category or subcategory if
there are no qualifying enterprises in that category or subcategory.''.
(b)(1) Section 108(c)(1) of the Stevenson-Wydler Technology
Innovation Act of 1980, as so redesignated by section 206(b)(3) of this
Act, is amended by adding at the end the following new subparagraph:
``(D) Educational institutions.''.
(2)(A) Within 1 year after the date of enactment of this Act, the
Secretary shall submit to the Congress a report containing--
(i) criteria for qualification for a Malcolm Baldrige
National Quality Award by various classes of educational
institutions;
(ii) criteria for the evaluation of applications for such
awards under section 108(d)(1) of the Stevenson-Wydler
Technology Innovation Act of 1980, as so redesignated by
section 206(b)(3) of this Act; and
(iii) a plan for funding awards described in clause (i).
(B) In preparing the report required under subparagraph (A), the
Secretary shall consult with the National Science Foundation and other
public and private entities with appropriate expertise, and shall
provide for public notice and comment.
(C) The Secretary shall not accept applications for awards
described in subparagraph (A)(i) until after the report required under
subparagraph (A) is submitted to the Congress.
SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.
Section 202 of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3710a), as redesignated by section 206(b)(5) of this
Act, is amended--
(1) in subsection (d)(1), by inserting ``(including both
real and personal property)'' after ``or other resources'' both
places it appears; and
(2) in subsection (d)(2)(A), by inserting ``including
Federal test and evaluation facilities,'' after ``by a Federal
agency,''.
SEC. 405. COMPETITIVENESS ASSESSMENTS AND EVALUATIONS.
Section 101(e) of the Stevenson-Wydler Technology Innovation Act of
1980, as so redesignated by section 206(b)(2) of this Act, is amended
to read as follows:
``(e) Competitiveness Assessments and Evaluations.--(1) The
Secretary, through the Under Secretary, shall--
``(A) provide for the conduct of research and analyses to
advance knowledge of the ways in which the economic
competitiveness of United States companies can be enhanced
through Federal programs established under the National
Competitiveness Act of 1993 or the amendments made by that Act;
and
``(B) as appropriate, provide for evaluations of Federal
technology programs established or expanded under the National
Competitiveness Act of 1993 or the amendments made by that Act
in order to judge their effectiveness and make recommendations
to improve their contribution to United States competitiveness.
``(2) All executive departments and agencies shall assist the
Secretary in carrying out this section as appropriate.
``(3) Nothing in this section shall authorize the release of
information to, or the use of information by, the Secretary or Under
Secretary in a manner inconsistent with law or any procedure
established pursuant thereto.
``(4) The head of any Federal agency may detail such personnel and
may provide such services, with or without reimbursement, as the
Secretary may request to assist in carrying out the activities required
under this section.''.
SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECHNOLOGIES.
Within 9 months after the date of enactment of this Act, the
Critical Technologies Institute (in this section referred to as the
``Institute'') established under section 822 of the National Defense
Authorization Act for Fiscal Year 1991 shall, after consultation with
the private sector and appropriate officials from other Federal
agencies, submit to Congress a report on advanced lithography
technologies for the production of semiconductor devices. The report
shall include the Institute's evaluation of the likely technical and
economic advantages and disadvantages of each such technology, an
analysis of current private and Government research to develop each
such technology, and any recommendations the Institute may have
regarding future Federal support for research and development in
advanced lithography.
SEC. 407. AMERICAN WORKFORCE QUALITY PARTNERSHIPS.
(a) Amendment.--Title III of the Stevenson-Wydler Technology
Innovation Act of 1980, as added by title II of this Act, is further
amended by adding at the end the following new section:
``SEC. 305. AMERICAN WORKFORCE QUALITY PARTNERSHIPS.
``(a) Program Authorized.--The Secretary may make grants to
establish and operate American workforce quality partnership programs
in accordance with the provisions of this section. The Secretary shall
award grants on a competitive basis to pay the Federal share for
American workforce quality partnership programs to establish workforce
training consortia between industry and institutions of higher
education.
``(b) Grant Period.--Grants awarded under this section may be for a
period of 5 years.
``(c) General Authority.--Each grant recipient shall use amounts
provided under the grant to develop and operate an American workforce
quality partnership program.
``(d) Contents of Program.--An American workforce quality
partnership program shall establish partnerships among--
``(1) one or more United States manufacturers;
``(2) an organization or organizations representing the
nonmanagerial employees of the manufacturers described in
paragraph (1); and
``(3) a local community technical college or other
appropriate institutions of higher education, a vocational
training institution, a Regional Center for the Transfer of
Manufacturing Technology, a Manufacturing Outreach Center, or
any similar entity or consortium of such institutions,
to train the employees of the industrial partners through both
workplace-based and classroom-based programs of training.
``(e) Federal Share.--The Federal share of the cost of an American
workforce quality partnership program may not exceed 50 percent of the
total cost of the program. The non-Federal share of such costs may be
provided in-cash or in-kind, fairly valued. The total contribution of
the proposed partnership should reflect a substantial contribution on
the part of the industrial partners and appropriate contributions of
the education partners, local or State governments, and other
appropriate entities.
``(f) Applications.--
``(1) Eligibility.--Any consortium described in subsection
(d) may apply for a grant under this section at such time and
in such manner as the Secretary shall prescribe.
``(2) Plan.--Each application submitted under this
subsection shall contain a plan for the development and
implementation of an American workforce quality partnership
program under this section. Such plan shall--
``(A) show a demonstrated commitment, on the part
of the industrial partners, to adopt total quality
management strategies or other plausible strategies to
renew its competitive edge;
``(B) demonstrate the need for Federal resources
because of the long-term nature and risk of such an
investment, the inability to finance such ventures
because of the high cost of capitalization, intense
competition from foreign industries, or such other
appropriate reasons as may limit the industrial
partners' ability to launch programs where worker
training and development is a substantial component;
``(C) demonstrate long-term benefit for all
partners and the local economy, through an enhanced
competitive position of the industrial partners,
substantial benefits for regional employment, and the
ability of the education and labor participants to
further their capabilities to educate and train other
nonpartnership-affiliated individuals wishing to obtain
or upgrade technical, technological, industrial
management and leadership, or other industrial skills;
``(D) make full, appropriate, and innovative use of
industrial and higher education resources and other
local resources such as facilities, equipment,
personnel exchanges, experts, or consultants;
``(E) provide for the establishment of an advisory
board in accordance with subsection (h);
``(F) include an explanation of the industrial
partners' plans to adopt new competitive strategies and
how the training partnership aids that effort; and
``(G) include assurances that the eligible entity
will maintain its aggregate expenditures from all
sources for employee training, other than those
provided under this section, at or above the average
level of such expenditures in the 2 fiscal years
preceding submission of an application for assistance
under this section.
``(3) Approval.--
``(A) In general.--The Secretary shall approve
applications based on their potential to create an
effective American workforce quality partnership
program in accordance with this section.
``(B) Criteria.--In reviewing grant applications,
the Secretary shall give significant consideration to
the following criteria:
``(i) Saliency of argument for requiring a
Federal investment.
``(ii) Commitment of partnership to
continue operation after the termination of
Federal funding.
``(iii) The likelihood that the training
will improve the long-term competitiveness of
the industrial partners and contribute
significantly to economic growth.
``(iv) The likelihood that the partnership
will benefit the education mission of the
education partners in ways outside of the scope
of the partnership, such as developing the
capability to train other nonpartnership-
affiliated individuals in similar skills.
``(C) Priority consideration.--The Secretary shall
give priority consideration to industries which are
threatened by intense foreign competition important to
the long-term national economic or military security of
the United States and industries which are critical in
enabling other United States industries to maintain a
healthy competitive position. In addition, the
Secretary shall give priority to applicants in areas of
high poverty and unemployment.
``(g) Use of Funds.--
``(1) Approved uses.--Federal funds may be used for--
``(A) the direct costs of workplace-based and
classroom-based training in advanced technical,
technological, and industrial management, skills, and
training for the implementation of total quality
management and technology management strategies, or
other competitiveness strategies, contained in the
applicant's plan submitted under subsection (f)(2)(F);
``(B) the purchase or lease of equipment or other
materials for the purpose of instruction to aid in
training;
``(C) the development of in-house curricula or
coursework or other training-related programs,
including the training of teachers and other eligible
participants to utilize such curricula or coursework;
and
``(D) reasonable administrative expenses and other
indirect costs of operating the partnership which may
not exceed 10 percent of the total cost of the program.
``(2) Limitations.--Federal funds may not be used for
nontraining related costs of adopting new competitive
strategies including the replacement of manufacturing
equipment, product redesign and manufacturing facility
construction costs, or salary compensation of the partners'
employees. Grants shall not be made under this section for
programs that will impair any existing program, contract, or
agreement without the written concurrence of the parties to
such program, contract, or agreement.
``(h) Advisory Board.--
``(1) Each partnership shall establish an advisory board
which shall include representation from each of the following
categories:
``(A) Multiple organizational levels of the
industrial partners, that shall include managerial
employees.
``(B) The education partners.
``(C) Organizations representing nonmanagerial
employees.
``(2) The advisory board shall--
``(A) advise the partnership on the general
direction and policy of the partnership including
training, instruction, and other related issues;
``(B) report to the Secretary after the second and
fourth year of the program, on the progress and status
of the partnership, including its strengths,
weaknesses, and new directions, the number of
individuals served, types of services provided, and an
outline of how the program can be integrated into the
existing training infrastructure in place in other
Federal agencies and departments; and
``(C) assist in the revision of the plans
(submitted with the application under subsection
(f)(2)(F)) and include revised plans as necessary in
the reports required under subparagraph (B).''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 1994.
SEC. 408. SEVERABILITY.
If any provision of this Act or the amendments made by this Act, or
the application thereof to any person or circumstance, is held invalid,
the remainder of this Act and the amendments made by this Act, and the
application thereof to other persons or circumstances, shall not be
affected thereby.
SEC. 409. SUNSET.
(a) Report to Congress.--Before April 1, 1995, the Secretary shall
submit to the Congress a report that evaluates the success of the
programs established by this Act, and the amendments made by this Act,
in achieving the purposes of this Act.
(b) Limitation on Appropriations.--Notwithstanding any other
provision of this Act, no funds are authorized to be appropriated for
any fiscal year after fiscal year 1995 for carrying out the programs
for which funds are authorized by this Act, or the amendments made by
this Act.
SEC. 410. USE OF DOMESTIC PRODUCTS.
(a) Prohibition Against Fraudulent Use of ``Made in America''
Labels.--(1) A person shall not intentionally affix a label bearing the
inscription of ``Made in America'', or any inscription with that
meaning, to any product sold in or shipped to the United States, if
that product is not a domestic product.
(2) A person who violates paragraph (1) shall not be eligible for
any contract for a procurement carried out with amounts authorized
under this Act, or under any amendment made by this Act, including any
subcontract under such a contract pursuant to the debarment,
suspension, and ineligibility procedures in subpart 9.4 of chapter 1 of
title 48, Code of Federal Regulations, or any successor procedures
thereto.
(b) Compliance With Buy American Act.--(1) Except as provided in
paragraph (2), the head of each agency which conducts procurements
shall ensure that such procurements are conducted in compliance with
sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a through
10c, popularly known as the ``Buy American Act'').
(2) This subsection shall apply only to procurements made for
which--
(A) amounts are authorized by this Act, or by any amendment
made by this Act, to be made available; and
(B) solicitations for bids are issued after the date of
enactment of this Act.
(3) The Secretary, before January 1, 1995, shall report to the
Congress on procurements covered under this subsection of products that
are not domestic products.
(c) Purchase of American Made Equipment and Products.--
(1) Sense of congress.--It is the sense of Congress that
any recipient of a grant under this Act, or under any amendment
made by this Act, should purchase only American made equipment
and products when expending grant monies.
(2) Notice to recipients of assistance.--In allocating
grants under this Act, or under any amendment made by this Act,
the Secretary shall provide to each recipient a notice
describing the statement made in paragraph (1) by the Congress.
(d) Definitions.--For the purposes of this section, the term
``domestic product'' means a product--
(1) that is manufactured or produced in the United States;
and
(2) at least 50 percent of the cost of the articles,
materials, or supplies of which are mined, produced, or
manufactured in the United States.
SEC. 411. NATIONAL QUALITY PROGRAM.
(a) Establishment.--There is established, under the supervision of
the Director, a National Quality Program (in this section referred to
as the ``Program''). The purpose of the Program shall be to enhance the
Malcolm Baldrige National Quality Award, to disseminate information,
and to promote and take part in educational and research activities
regarding ways in which United States companies and organizations can
improve their quality management practices and productivity.
(b) Activities.--As part of the Program, the Director is
authorized--
(1) to develop industry-led workshops, seminars, and other
mechanisms to disseminate broadly to United States companies
and organizations the best practices available in total quality
management, including the practices and quality improvement
strategies successfully employed by those firms that have won
the Malcolm Baldrige National Quality Award, as well as best
practices in lean production methods, market-driven product
improvement, and customer-supplier relations;
(2) to work with industry leaders and others to develop
both measures of quality and recommendations concerning what
skills employees should have in order to participate
effectively in company quality programs; and
(3) to explore, with private industry, other Federal
agencies, and State and local government, innovative ways in
which 2-year colleges and other educational institutions can
teach quality assurance techniques and related background
skills to industrial workers in both manufacturing and
services.
SEC. 412. DEFINITIONS.
Title III of the Stevenson-Wydler Technology Innovation Act of
1980, as added by title II and section 407 of this Act, is further
amended by adding at the end the following new section:
``SEC. 306. DEFINITIONS.
``For purposes of this title and title IV--
``(1) the term `State' means each of the several States,
the District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other territory or possession
of the United States; and
``(2) the term `United States' means the several States,
the District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other territory or possession
of the United States.''.
SEC. 413. FASTENER QUALITY ACT AMENDMENTS.
(a) References.--Whenever in this section an amendment is expressed
in terms of an amendment to a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Fastener Quality Act (15 U.S.C. 5401 et seq.).
(b) Technical Amendments.--
(1) Definitions.--Section 3 (15 U.S.C. 5402) is amended--
(A) in paragraph (8), by striking ``Standard'' and
inserting in lieu thereof ``Standards''; and
(B) in paragraph (14), by striking ``which defines
or describes'' and all that follows through ``of any
fastener''.
(2) Inspection and testing.--Section 5(b)(1) (15 U.S.C.
5404(b)(1)) is amended by striking ``section 6; unless'' and
inserting in lieu thereof ``section 6, unless''.
(3) Importers and private label distributors.--Section
7(c)(2) (15 U.S.C. 5406(c)(2)) is amended by inserting ``to the
same'' before ``extent''.
(c) Clarifying Amendments.--
(1) Chemical tests.--(A) Section 5(a)(1)(B) (15 U.S.C.
5404(a)(1)(B)) is amended by striking ``subsections (b) and
(c)'' and inserting in lieu thereof ``subsections (b), (c), and
(d)''.
(B) Section 5(a)(2)(A)(i) (15 U.S.C. 5404(a)(2)(A)(i)) is
amended by striking ``subsections (b) and (c)'' and inserting
in lieu thereof ``subsections (b), (c), and (d)''.
(C) Section 5(c)(4) (15 U.S.C. 5404(c)(4)) is amended by
inserting ``except as provided in subsection (d),'' before
``state''.
(D) Section 5 (15 U.S.C. 5404) is amended by inserting at
the end the following new subsection:
``(d) Alternative Procedure for Chemical Characteristics.--
Notwithstanding the requirements of subsections (b) and (c), a
manufacturer shall be deemed to have demonstrated, for purposes of
subsection (a)(1), that the chemical characteristics of a lot conform
to the standards and specifications to which the manufacturer
represents such lot has been manufactured if the following requirements
are met:
``(1) The coil or heat number of metal from which such lot
was fabricated has been inspected and tested with respect to
its chemical characteristics by a laboratory accredited in
accordance with the procedures and conditions specified by the
Secretary under section 6.
``(2) Such laboratory has provided to the manufacturer,
either directly or through the metal manufacturer, a written
inspection and testing report, which shall be in a form
prescribed by the Secretary by regulation, listing the chemical
characteristics of such coil or heat number.
``(3) The report described in paragraph (2) indicates that
the chemical characteristics of such coil or heat number
conform to those required by the standards and specifications
to which the manufacturer represents such lot has been
manufactured.
``(4) The manufacturer demonstrates that such lot has been
fabricated from the coil or heat number of metal to which the
report described in paragraphs (2) and (3) relates.
In prescribing the form of report required by subsection (c), the
Secretary shall provide for an alternative to the statement required by
subsection (c)(4), insofar as such statement pertains to chemical
characteristics, for cases in which a manufacturer elects to use the
procedure permitted by this subsection.''.
TITLE V--AUTHORIZATIONS OF APPROPRIATIONS
SEC. 501. TECHNOLOGY ADMINISTRATION.
There are authorized to be appropriated to the Secretary, to carry
out the activities of the Under Secretary and the Assistant Secretary
of Commerce for Technology Policy, in addition to any other amounts
authorized for such purposes, for the Office of the Under Secretary--
(1) $5,425,000 for fiscal year 1994; and
(2) $10,000,000 for fiscal year 1995, of which $2,000,000
are authorized for competitiveness assessments and evaluations
under section 101(e) of the Stevenson-Wydler Technology
Innovation Act of 1980, as so redesignated by section 206(b)(2)
of this Act.
SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.
(a) Intramural Scientific and Technical Research and Services.--(1)
There are authorized to be appropriated to the Secretary, to carry out
the intramural scientific and technical research and services
activities of the Institute, $242,988,000 for fiscal year 1994 and
$300,000,000 for fiscal year 1995.
(2) Of the amounts authorized under paragraph (1)--
(A) $1,000,000 for fiscal year 1994 and $1,000,000 for
fiscal year 1995 are authorized only for the evaluation of
nonenergy-related inventions;
(B) $9,000,000 for fiscal year 1994 and $10,000,000 for
fiscal year 1995 are authorized only for the technical
competence fund; and
(C) $2,000,000 for fiscal year 1994 and $3,000,000 for
fiscal year 1995 are authorized only for the standards pilot
project established under section 104(e) of the American
Technology Preeminence Act of 1991.
(b) Transfers.--(1) Funds may be transferred among the line items
listed in subsection (a), so long as--
(A) the net funds transferred to or from any line item do
not exceed 10 percent of the amount authorized for that line
item in such subsection;
(B) the aggregate amount authorized under subsection (a) is
not changed; and
(C) the Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Science, Space, and
Technology of the House of Representatives are notified in
advance of any such transfer.
(2) The Secretary may propose transfers to or from any line item
listed in subsection (a) exceeding 10 percent of the amount authorized
for such line item, but such proposed transfer may not be made unless--
(A) a full and complete explanation of any such proposed
transfer and the reason therefor are transmitted in writing to
the Speaker of the House of Representatives, the President of
the Senate, and the appropriate authorizing Committees of the
House of Representatives and the Senate; and
(B) 30 days have passed following the transmission of such
written explanation.
(c) Facilities Construction.--There are authorized to be
appropriated to the Secretary, to carry out construction and
modernization of Institute facilities, $61,686,000 for fiscal year 1994
and $106,000,000 for fiscal year 1995.
SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY ADMINISTRATION.
(a) Fiscal Year 1994.--In addition to the amounts authorized under
sections 501 and 502, there are authorized to be appropriated to the
Secretary for fiscal year 1994--
(1) for Regional Centers for the Transfer of Manufacturing
Technology, for the National Technology Outreach Program
established under section 303 of the Stevenson-Wydler
Technology Innovation Act of 1980, and for the National Quality
Program established under section 410 of this Act, $30,035,000;
(2) for the State Technology Extension Program, $3,000,000;
(3) for the Advanced Technology Program $193,489,000, of
which $20,000,000 is authorized for the Advanced Manufacturing
Technology Development Program established under section 304 of
the Stevenson-Wydler Technology Innovation Act of 1980;
(4) for the Civilian Technology Loan Program established
under subtitle C of title III of this Act, $1,000,000;
(5) for the Civilian Technologies Development Program
established under subtitle D of title III of this Act,
$1,000,000; and
(6) for carrying out the Benchmarking Program established
under title IV of the Stevenson-Wydler Technology Innovation
Act of 1980, $2,000,000.
(b) Fiscal Year 1995.--In addition to the amounts authorized under
subsection (a), there are authorized to be appropriated to the
Secretary for fiscal year 1995, to carry out the other activities of
the Technology Administration, including the extramural industrial
technology services activities of the Institute and the Advanced
Technology Program, $534,000,000, of which--
(1) not more than $150,000,000 shall be for the Regional
Centers for the Transfer of Manufacturing Technology and the
National Technology Outreach Program established under section
303 of the Stevenson-Wydler Technology Innovation Act of 1980;
(2) not more than $3,000,000 shall be for the National
Quality Program established under section 410 of this Act;
(3) not more than $3,000,000 shall be for the State
Technology Extension Program;
(4) not more than $50,000,000 shall be for the Advanced
Manufacturing Technology Development Program established under
section 304 of the Stevenson-Wydler Technology Innovation Act
of 1980;
(5) not more than $20,000,000 shall be for the Civilian
Technology Loan Program established under subtitle C of title
III of this Act;
(6) not more than $50,000,000 shall be for the Civilian
Technologies Development Program established under subtitle D
of title III of this Act;
(7) not more than $10,000,000 shall be for carrying out the
Benchmarking Program established under title IV of the
Stevenson-Wydler Technology Innovation Act of 1980; and
(8) not more than $50,000,000 shall be for carrying out the
American workforce quality partnership program established
under section 305 of the Stevenson-Wydler Technology Innovation
Act of 1980.
(c) Administrative Expenses; Audits.--Of the amounts made available
under subsection (a)(4), not more than $2,000,000 or 10 percent,
whichever is greater, shall be available for administrative expenses.
Of the amounts made available under subsection (b)(5), not more than
$5,000,000 or 10 percent, whichever is greater, shall be available for
administrative expenses. The Secretary shall ensure that audits are
performed by independent auditors on the programs for which funds are
appropriated pursuant to this section. The summary results of such
audits shall be submitted to the Congress by the end of each of the
fiscal years 1994 and 1995, and not more than $2,000,000, or 2 percent
of the aggregate amount made available under such section and
subsection, whichever is greater, shall be used in each such fiscal
year for performing the audits.
SEC. 504. NATIONAL SCIENCE FOUNDATION.
In addition to such other sums as may be authorized by other Acts
to be appropriated to the Director of the National Science Foundation,
there are authorized to be appropriated to that Director--
(1) for carrying out section 212 of this Act, $20,000,000
for fiscal year 1995; and
(2) for carrying out section 213 of this Act, $30,000,000
for fiscal year 1995.
SEC. 505. AVAILABILITY OF APPROPRIATIONS.
Except as otherwise provided in this title, appropriations made
under the authority provided in this title shall remain available for
obligation until expended.
SEC. 506. PROHIBITIONS.
None of the funds made available in this Act may be used to provide
any direct Federal financial benefit to any person who is not (1) a
citizen or national of the United States; (2) an alien lawfully
admitted for permanent residence; or (3) an alien granted legal status
as a parolee, asylee, or refugee.
Passed the House of Representatives May 19, 1993.
Attest:
DONNALD K. ANDERSON,
Clerk.
HR 820 CDS----2
HR 820 CDS----3
HR 820 CDS----4
HR 820 CDS----5
HR 820 CDS----6
HR 820 CDS----7
HR 820 CDS----8
HR 820 CDS----9
HR 820 CDS----10