Electronic Commerce Extension Establishment Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electronic Commerce Extension 
Establishment Act of 1999''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The United States economy is in the early stages of a 
        revolution in electronic commerce--the ability to buy, sell, 
        and even deliver goods and services through computer networks. 
        Estimates are that electronic commerce sales in 1998 were 
        around $100,000,000,000 and could rise to $1,300,000,000,000 by 
        2003.
            (2) Electronic commerce promises to spur tremendously 
        United States productivity and economic growth--repeating a 
        historical pattern where the greatest impetus toward economic 
        growth lies not in the sale of new technologies but in their 
        widespread adoption and use.
            (3) Electronic commerce presents an enormous opportunity 
        and challenge for small businesses. Such commerce will give 
        such businesses new markets and new ways of doing businesses. 
        However, many such business will have difficulty in adopting 
        appropriate electronic commerce technologies and practices. 
        Moreover, such businesses in more rural areas will find distant 
        businesses entering their markets and competing with them. 
        Thus, there is considerable risk many small businesses will be 
        left behind in the shift to electronic commerce.
            (4) The United States has an interest in ensuring that 
        small businesses in all parts of the United States participate 
        fully in the electronic commerce revolution, both for the sake 
        of such businesses and in order to promote productivity and 
        economic growth throughout the entire United States economy.
            (5) The Federal Government has a long history of 
        successfully helping small farmers with new agricultural 
        technologies through the Cooperative Extension System at the 
        Department of Agriculture, founded in 1914. More recently, the 
        National Institute of Standards and Technology has successfully 
        helped small manufacturers with manufacturing technologies 
        through its Manufacturing Extension Program, established in 
        1988.
            (6) Similarly, now is the time to establish an electronic 
        commerce extension program to help small businesses throughout 
        the United States identify, adapt, and adopt electronic 
        commerce technologies and business practices, thereby ensuring 
        that such businesses fully participate in the electronic 
        commerce revolution.

SEC. 3. PURPOSE.

    The purpose of this Act is to establish an electronic commerce 
extension program focused on small businesses at the National Institute 
of Standards and Technology.

SEC. 4. ESTABLISHMENT OF ELECTRONIC COMMERCE EXTENSION PROGRAM AT 
              NATIONAL INSTITUTES OF STANDARDS AND TECHNOLOGY.

    (a) Establishment.--The National Bureau of Standards Act (15 U.S.C. 
271 et seq.) is amended by inserting after section 25 (15 U.S.C. 278k) 
the following new section:

 ``regional centers for the transfer of electronic commerce technology

    ``Sec. 25A. (a)(1) The Secretary, through the Undersecretary of 
Commerce for Technology and the Director and in consultation with other 
appropriate officials, shall provide assistance for the creation and 
support of Regional Centers for the Transfer of Electronic Commerce 
Technology (in this section referred to as `Centers').
    ``(2) The Centers shall be affiliated with any United States-based 
nonprofit institution or organization, or group thereof, that applies 
for and is awarded financial assistance under this section in 
accordance with the program established by the Secretary under 
subsection (c).
    ``(3) The objective of the Centers is to enhance productivity and 
technological performance in United States electronic commerce 
through--
            ``(A) the transfer of electronic commerce technology and 
        techniques developed at the Institute to Centers and, through 
        them, to companies throughout the United States;
            ``(B) the participation of individuals from industry, 
        institutions of higher education, State governments, other 
        Federal agencies, and, when appropriate, the Institute in 
        cooperative technology transfer activities;
            ``(C) efforts to make electronic commerce technology and 
        techniques usable by a wide range of United States-based small 
        companies;
            ``(D) the active dissemination of scientific, engineering, 
        technical, and management information about electronic commerce 
        to small companies, with a particular focus on reaching those 
        located in rural or isolated areas; and
            ``(E) the utilization, when appropriate, of the expertise 
        and capability that exists in State and local governments, 
        institutions of higher education, the private sector, and 
        Federal laboratories other than the Institute.
    ``(b) The activities of the Centers shall include--
            ``(1) the establishment of electronic commerce 
        demonstration systems, based on research by the Institute and 
        other organizations and entities, for the purpose of technology 
        transfer; and
            ``(2) the active transfer and dissemination of research 
        findings and Center expertise to a wide range of companies and 
        enterprises, particularly small companies.
    ``(c)(1) The Secretary may provide financial support to any Center 
created under subsection (a) in accordance with a program established 
by the Secretary for purposes of this section.
    ``(2) The Secretary may not provide to a Center more than 50 
percent of the capital and annual operating and maintenance funds 
required to create and maintain the Center.
    ``(3)(A) Any nonprofit institution, or group thereof, or consortia 
of nonprofit institutions may, in accordance with the procedures 
established by the Secretary under the program under paragraph (1), 
submit to the Secretary an application for financial support for the 
creation and operation of a Center under this section.
    ``(B) In order to receive financial assistance under this section 
for a Center, an applicant shall provide adequate assurances that it 
will contribute 50 percent or more of the estimated capital and annual 
operating and maintenance costs of the Center for the first three years 
of its operation and an increasing share of such costs over the next 
three years of its operation.
    ``(C) An applicant shall also submit a proposal for the allocation 
of the legal rights associated with any invention which may result from 
the activities of the Center proposed by the applicant.
    ``(4)(A) The Secretary shall subject each application submitted 
under this subsection to merit review.
    ``(B) In making a decision whether to approve an application and 
provide financial support for a Center under this section, the 
Secretary shall consider at a minimum--
            ``(i) the merits of the application, particularly the 
        portions of the application regarding technology transfer, 
        training and education, and adaptation of electronic commerce 
        technologies to the needs of particular industrial sectors;
            ``(ii) the quality of service to be provided;
            ``(iii) geographical diversity and extent of service area; 
        and
            ``(iv) the percentage of funding and amount of in-kind 
        commitment from other sources.
    ``(5)(A) Each Center receiving financial assistance under this 
section shall be evaluated during the third year of its operation by an 
evaluation panel appointed by the Secretary.
    ``(B) Each evaluation panel under this paragraph shall be composed 
of private experts, none of whom shall be connected with the Center 
involved, and with appropriate Federal officials. An official of the 
Institute shall chair each evaluation panel.
    ``(C) Each evaluation panel under this paragraph shall measure the 
performance of the Center involved against the objectives specified in 
this section and under the arrangement between the Center and the 
Institute.
    ``(6) The Secretary may not provide funding for a Center under this 
section for the fourth through the sixth years of its operation unless 
the evaluation regarding the Center under paragraph (5) is positive. If 
such evaluation for a Center is positive, the Secretary may provide 
continued funding for the Center through the sixth year of its 
operation at declining levels.
    ``(7)(A) After the sixth year of operation of a Center, the Center 
may receive additional financial support under this section if the 
Center has received a positive evaluation of its operation through an 
independent review conducted under procedures established by the 
Institute. Such independent review shall be undertaken for a Center not 
less often than every two years commencing after the sixth year of its 
operation.
    ``(B) The amount of funding received by a Center under this section 
for any fiscal year of the Center after the sixth year of its operation 
may not exceed an amount equal to one-third of the capital and annual 
operating and maintenance costs of the Center in such fiscal year under 
the program.
    ``(8) The provisions of chapter 18 of title 35, United States Code, 
shall (to the extent not inconsistent with this section) apply to the 
promotion of technology from research by Centers under this section 
except for contracts for such specific technology extension or transfer 
services as may be specified by statute or by the Director.
    ``(d)(1) In addition to such sums as may be appropriated to the 
Secretary and Director for purposes of the support of Centers under 
this section, the Secretary and Director may accept funds from other 
Federal departments and agencies for such purposes.
    ``(2) The selection and operation of a Center under this section 
shall be governed by the provisions of this section, regardless of the 
Federal department or agency providing funds for the operation of the 
Center.
    ``(e) In this section, the term `electronic commerce' means the 
buying, selling, and delivery of goods and services, or the 
coordination or conduct of economic activities within and among 
organizations, through computer networks.''.
    (b) Description of Program.--(1) Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Commerce shall 
publish in the Federal Register a proposal for the program required by 
section 25A(c) of the National Bureau of Standards Act, as added by 
subsection (a).
    (2) The proposal for the program under paragraph (1) shall 
include--
            (A) a description of the program;
            (B) procedures to be followed by applicants for support 
        under the program;
            (C) criteria for determining qualified applicants under the 
        program;
            (D) criteria, including the criteria specified in paragraph 
        (4) of such section 25A(c), for choosing recipients of 
        financial assistance under the program from among qualified 
        applicants; and
            (E) maximum support levels expected to be available to 
        Centers for the Transfer of Electronic Commerce Technology 
        under the program in each year of assistance under the program.
    (3) The Secretary shall provide a 30-day period of opportunity for 
public comment on the proposal published under paragraph (1).
    (4) Upon completion of the period referred to in paragraph (3), the 
Secretary shall publish in the Federal Register a final version of the 
program referred to in paragraph (1). The final version of the program 
shall take into account public comments received by the Secretary under 
paragraph (3).
    (c) Authorization of Appropriations.--There is hereby authorized to 
be appropriated for the Department of Commerce each fiscal year such 
amounts as may be required during such fiscal year for purposes of 
activities under section 25A of the National Bureau of Standards Act, 
as added by subsection (a).

Summary: Electronic Commerce Extension Establishment Act of 1999 - Amends the National Bureau of Standards Act to direct the Secretary of Commerce to provide assistance for the creation and support of Regional Centers for the Transfer of Electronic Commerce Technology (Centers). Requires the Centers to be affiliated with any US-based nonprofit institution or organization that applies for and is awarded financial assistance under this Act. Outlines objectives of the Centers, including aiding small businesses, especially those located in rural areas, in identifying and adopting electronic commerce technologies and business practices. Defines electronic commerce as the ability to buy, sell, and deliver goods and services through computer networks. Requires such Centers to: (1) establish electronic commerce demonstration systems for technology transfer. And (2) transfer and disseminate research findings and Center expertise to companies and enterprises, particularly small businesses. Authorizes the Secretary to provide financial support to a Center for such activities and objectives. Outlines application requirements for such assistance. Requires Centers receiving assistance to be evaluated during the third year of operation by a panel of private experts. Requires a positive finding from such panel before a Center may receive such assistance for its fourth through sixth years. Requires independent review of a Center every two years after the sixth year, to be conducted under procedures established by the National Institutes of Standards and Technology. Provides Center funding limitations. Requires the Secretary to publish a proposal for the assistance program provided under this Act, as well as a final program. Authorizes appropriations.