I

104TH CONGRESS

1ST SESSION H. R. 1844

To contribute to the competitiveness of the United States by enhancing

the manufacturing technology programs of the Department of Commerce.

IN THE HOUSE OF REPRESENTATIVES

JUNE 14, 1995

Mr. OLVER introduced the following bill; which was referred to the Committee

on Science

A BILL

To contribute to the competitiveness of the United States

by enhancing the manufacturing technology programs

of the Department of Commerce.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Manufacturing Tech5 nology and Extension Act of 1995’’.

6 SEC. 2. FINDINGS, PURPOSE, AND STATEMENT OF POLICY.

7 The Stevenson-Wydler Technology Innovation Act of

8 1980 (15 U.S.C. 3701 et seq.) is amended by adding at

9 the end the following new title:
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1 ‘‘TITLE III—MANUFACTURING

2 TECHNOLOGY

3 ‘‘SEC. 301. FINDINGS, PURPOSE, AND STATEMENT OF POL4 ICY.

5 ‘‘(a) FINDINGS.—Congress finds and declares the fol6 lowing:

7 ‘‘(1) United States manufacturers, especially

8 small businesses, require the adoption and imple9 mentation of both modern and advanced manufac10 turing and process technologies to meet the chal11 lenge of foreign competition.

12 ‘‘(2) The development and application of mod13 ern and advanced manufacturing technologies are

14 vital to the sustainable economic growth, standard of

15 living, competitiveness in world markets, and na16 tional security and welfare of the United States.

17 ‘‘(3) New developments in flexible, computer-in18 tegrated manufacturing, electronic manufacturing

19 communications networks, and other new tech20 nologies make possible dramatic improvements

21 across all industrial sectors in productivity, quality,

22 and the speed with which United States manufactur23 ers can respond to changing market opportunities.

24 ‘‘(4) The application of advances in computer

25 science and technology to manufacturing is also vital
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1 to the Nation’s prosperity, national and economic se2 curity, industrial production, engineering, and sci3 entific advancement.

4 ‘‘(5) The Department of Commerce’s Tech5 nology Administration, along with other Federal

6 agencies, can continue to play an important role in

7 assisting United States companies to develop, test,

8 and adopt modern and advanced manufacturing

9 technologies and in establishing high-performance

10 computing technology testbeds to develop, refine,

11 test, and transfer advanced manufacturing and

12 networking technologies and associated applications.

13 ‘‘(b) PURPOSE.—It is the purpose of this title to con14 tribute to the competitiveness of the United States by en15 hancing the Department of Commerce’s technology pro16 grams to—

17 ‘‘(1) provide United States manufacturers, es18 pecially small businesses, with ready access to high

19 quality advice and assistance in the development,

20 adoption, and improvement of modern manufactur21 ing processes and technology, and in solving their

22 specific technology-based problems; and

23 ‘‘(2) encourage, facilitate, and support the de24 velopment and adoption of advanced manufacturing
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1 principles and technologies by United States manu2 facturers.

3 ‘‘(c) STATEMENT OF POLICY.—Congress declares

4 that it is the policy of the United States that—

5 ‘‘(1) Federal agencies, particularly the Depart6 ment of Commerce, shall work with United States

7 manufacturers, labor, and the States to ensure that

8 the United States is second to no other nation in the

9 development, adoption, and use of modern and ad10 vanced manufacturing technology;

11 ‘‘(2) the Department of Commerce shall work

12 with all the major Federal research and development

13 agencies to encourage the development and adoption,

14 by United States manufacturers, of advanced manu15 facturing technologies, and shall work closely with

16 United States manufacturers and labor, and with

17 the Nation’s universities, to develop and test those

18 technologies; and

19 ‘‘(3) the Department of Commerce shall place a

20 high priority on the establishment and growth of a

21 National Technology Outreach Program to promote

22 and facilitate the development and use by United

23 States manufacturers of modern and advanced man24 ufacturing systems and applications for manufactur25 ing.
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1 ‘‘(d) CONSTRUCTION.—Nothing in this title shall be

2 construed as modifying the duties and responsibilities of

3 the Department of Energy with regard to its technology

4 resources and expertise in matters under its jurisdiction.’’.

5 SEC. 3. ROLE OF THE DEPARTMENT OF COMMERCE.

6 Title III of the Stevenson-Wydler Technology Innova7 tion Act of 1980, as added by section 2 of this Act, is

8 further amended by adding at the end the following new

9 section:

10 ‘‘SEC. 302. ROLE OF THE DEPARTMENT OF COMMERCE.

11 ‘‘(a) DEPARTMENT OF COMMERCE.—Consistent with

12 the purposes and policies of section 301, the Department

13 of Commerce shall have primary responsibility in the Fed14 eral Government in working with United States manufac15 turers and labor and the States to develop advanced man16 ufacturing technologies and to promote and assist the

17 adoption and use of modern and advanced manufacturing

18 technologies, practices, and management techniques

19 throughout the United States. In carrying out this title,

20 the Secretary, acting, as appropriate, through the Under

21 Secretary and the Director, shall—

22 ‘‘(1) consult and cooperate with other Federal

23 agencies, including the Department of Defense, the

24 Department of Energy, and the National Aero25 nautics and Space Administration to ensure consist-
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1 ent and, where possible, coordinated efforts to pro2 mote the development and adoption of modern and

3 advanced manufacturing technologies;

4 ‘‘(2) assist the Office of Science and Tech5 nology Policy in its efforts to coordinate the manu6 facturing technology activities of the various Federal

7 agencies; and

8 ‘‘(3) work with representatives of Federal,

9 State, and local agencies, manufacturing extension

10 programs, private industry, industry groups, worker

11 organizations, and academia to encourage and facili12 tate the use of both advanced manufacturing tech13 nologies, including those developed by the Advanced

14 Manufacturing Technology Development Program

15 established under section 304 of this Act, and mod16 ern manufacturing technologies and practices to

17 United States manufacturers.

18 The Secretary shall annually report to Congress on actions

19 taken under this subsection.

20 ‘‘(b) OTHER FEDERAL AGENCIES.—To the extent

21 permitted by other law, other Federal agencies shall co22 operate with the Secretary in carrying out this title.’’.

23 SEC. 4. NATIONAL TECHNOLOGY OUTREACH PROGRAM.

24 Title III of the Stevenson-Wydler Technology Innova25 tion Act of 1980, as added by sections 2 and 3 of this
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1 Act, is further amended by adding at the end the following

2 new section:

3 ‘‘SEC. 303. NATIONAL TECHNOLOGY OUTREACH PROGRAM.

4 ‘‘(a) ESTABLISHMENT AND PURPOSE.—There is

5 hereby established a National Technology Outreach Pro6 gram (in this section referred to as the ‘Outreach Pro7 gram’), the purpose of which shall be to—

8 ‘‘(1) interconnect, programmatically and elec9 tronically, the Nation’s technology and manufactur10 ing extension centers, programs, and activities;

11 ‘‘(2) improve the competitiveness of United

12 States manufacturers and create jobs located in the

13 United States; and

14 ‘‘(3) assist United States manufacturers, espe15 cially small businesses, to expand and accelerate the

16 use of cost-effective modern manufacturing tech17 nologies and practices and to develop and adopt ad18 vanced manufacturing technologies. The Secretary,

19 acting through the Under Secretary and the Direc20 tor, shall implement and coordinate the Outreach

21 Program in accordance with an initial plan and a 5-

22 year plan for the Outreach Program, to be submit23 ted to the Congress under subsection (g).

24 ‘‘(b) PROGRAM COMPONENTS.—The Outreach Pro25 gram shall constitute a partnership between the Depart-
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1 ment of Commerce, the States, the private sector, and,

2 as appropriate, shall include other Federal agencies to

3 provide a national system of manufacturing and tech4 nology extension centers and technical services to United

5 States manufacturers, particularly small businesses. The

6 Outreach Program shall include—

7 ‘‘(1) Manufacturing Outreach Centers estab8 lished under subsection (c);

9 ‘‘(2) Regional Centers for the Transfer of Man10 ufacturing Technology established under section 25

11 of the National Institute of Standards and Tech12 nology Act (15 U.S.C. 278k);

13 ‘‘(3) the State Technology Extension Program

14 established under section 26 of the National Insti15 tute of Standards and Technology Act (15 U.S.C.

16 278l);

17 ‘‘(4) the Outreach Program Information Net18 work and the Clearinghouse established under sub19 sections (d) and (e) of this section, respectively; and

20 ‘‘(5) other technology and manufacturing exten21 sion centers and activities supported by Federal,

22 State, or local agencies which could contribute to the

23 goals of this title and that the Secretary considers

24 appropriate for inclusion in the Outreach Program.
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1 ‘‘(c) MANUFACTURING OUTREACH CENTERS.—(1)

2 Eligible government and private sector organizations that

3 are engaged in technology or manufacturing extension ac4 tivities may apply to the Secretary for designation as Man5 ufacturing Outreach Centers, in such form and manner

6 as the Secretary may prescribe. Eligible organizations in7 clude Federal, State, and local government agencies, ex8 tension programs, universities, and laboratories; small

9 business development centers; and professional societies,

10 worker organizations, industrial organizations, nonprofit

11 organizations, community development organizations,

12 community colleges, and technical schools and colleges.

13 ‘‘(2) The Secretary shall establish standards, consist14 ent with the requirements of subsection (f), for designa15 tion of existing technology or manufacturing extension

16 programs and for qualification of start-up programs as

17 Manufacturing Outreach Centers.

18 ‘‘(3) The Secretary may, through a competitive proc19 ess, make grants, subject to the availability of appropria20 tions, to Manufacturing Outreach Centers designated in

21 accordance with the standards established under para22 graph (2), to enable them to fulfill the purposes and per23 form the activities of the Outreach Program. If a State

24 plan for technology extension exists in a State where an

25 applicant for a grant under this paragraph is operating
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1 or plans to operate, the proposer shall demonstrate in its

2 application that its proposal is compatible with such State

3 plan. The purpose of such grants is to upgrade the overall

4 quality of the Outreach Program and to contribute to the

5 goal of ready availability of the services and information

6 provided through the Outreach Program, including infor7 mation on modern and advanced manufacturing tech8 nology, to all interested United States manufacturers.

9 Such grants shall be awarded to increase the capabilities

10 and capacity of Manufacturing Outreach Centers. Manu11 facturing Outreach Centers may not concurrently receive

12 financial assistance under section 25 of the National Insti13 tute of Standards and Technology Act and grants under

14 this paragraph. Grants may be awarded under this para15 graph for an initial period not to exceed 3 years and may

16 be renewed for one additional period, not to exceed 2

17 years. Such grants may not at any time exceed 50 percent

18 of the operating costs and in-kind contributions of the

19 grant recipient.

20 ‘‘(4) In selecting applicants to participate in the Out21 reach Program and in making grants under paragraph

22 (3), the Secretary shall solicit and consider evaluations of

23 the applicant’s performance record and current capabili24 ties, and the potential usefulness of the applicant’s pro-
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1 posal, from United States manufacturers that the Sec2 retary considers qualified to make such evaluations.

3 ‘‘(d) OUTREACH PROGRAM INFORMATION NET4 WORK.—(1) The Department of Commerce shall provide

5 for an instantaneous, interactive electronic communica6 tions network (in this section referred to as the ‘outreach

7 network’) to serve the Outreach Program, to facilitate ef8 fective and efficient interaction within it, and to permit

9 the collection and dissemination in electronic form, in a

10 timely and accurate manner, of information described in

11 subsection (e). The outreach network shall, wherever prac12 ticable, make use of existing public and private computer

13 networks, data bases, and electronic bulletin boards. The

14 design, configuration, acquisition plan, and operating poli15 cies, including user fees and appropriate electronic access

16 for public and private information suppliers and users, of

17 the outreach network shall be included in the 5-year plan

18 prepared under subsection (g)(2) and shall address—

19 ‘‘(A) effective mechanisms for providing operat20 ing funds for the maintenance and use of the out21 reach network established under this paragraph, in22 cluding user fees, industry support, and continued

23 Federal investment;
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1 ‘‘(B) the future operation and evolution of the

2 outreach network, including its relationship with

3 other public or private information services;

4 ‘‘(C) how to protect the copyrights of material

5 distributed over the outreach network; and

6 ‘‘(D) appropriate policies—

7 ‘‘(i) to ensure the security of proprietary

8 information that might be available on the out9 reach network and to protect the privacy of

10 users of the outreach network; and

11 ‘‘(ii) to facilitate and limit access to the

12 outreach network and its information to mem13 ber organizations of the Outreach Program and

14 to United States companies, State and local

15 governments, United States universities and

16 colleges, and United States nonprofit organiza17 tions that the Secretary deems appropriate.

18 ‘‘(2) Except as provided in this section, the outreach

19 network established under paragraph (1) shall be designed

20 and configured in a manner that will enable interoper21 ability with networks and technologies developed under the

22 National High-Performance Computing Program de23 scribed in section 101 of the High-Performance Comput24 ing Act of 1991 (15 U.S.C. 5511). The Secretary shall

25 also, as appropriate, coordinate activities under this sub-
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1 section with the relevant activities of other Federal agen2 cies, particularly the agile manufacturing/enterprise inte3 gration activities of the Department of Defense.

4 ‘‘(e) CLEARINGHOUSE.—(1) The Secretary shall de5 velop a clearinghouse system, using existing public and

6 private sector information providers and carriers where

7 appropriate, to—

8 ‘‘(A) identify expertise and acquire information,

9 appropriate to the purpose of the Outreach Program

10 stated in subsection (a), from all appropriate Fed11 eral sources, and where appropriate from other

12 sources, providing assistance where necessary in

13 making such information electronically available

14 through and compatible with the outreach network;

15 ‘‘(B) ensure ready access, through the outreach

16 network, by United States companies, Federal agen17 cies, State and local governments, United States

18 universities and colleges, United States nonprofit or19 ganizations that the Secretary deems appropriate,

20 and member organizations of the Outreach Program,

21 to the most recent relevant available information and

22 expertise;

23 ‘‘(C) ensure that common standards of inter24 connection are utilized by the outreach network and
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1 the clearinghouse to allow maximum interoperability

2 and usership; and

3 ‘‘(D) to the extent practicable, inform United

4 States manufacturers of the availability of such in5 formation.

6 ‘‘(2) The clearinghouse shall include information

7 available electronically on—

8 ‘‘(A) activities of Manufacturing Outreach Cen9 ters, Regional Centers for the Transfer of Manufac10 turing Technology, the State Technology Extension

11 Program, and the users of the outreach network;

12 ‘‘(B) domestic and international standards and

13 other export promotion information, including con14 formity assessment requirements and procedures;

15 ‘‘(C) the Malcolm Baldrige Quality program,

16 and quality principles and standards;

17 ‘‘(D) manufacturing processes minimizing waste

18 and negative environmental impact;

19 ‘‘(E) federally funded technology development

20 and transfer programs;

21 ‘‘(F) how to access data bases and services; and

22 ‘‘(G) skills training, particularly the implemen23 tation and use of modern and advanced manufactur24 ing techniques.
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1 ‘‘(3) The Secretary, acting through the Under Sec2 retary, may convene a national conference to develop rec3 ommendations for common standards for interconnection

4 and for improved dissemination to users of the clearing5 house of information on domestic and international tech6 nical regulations and standards, and on conformity assess7 ment procedures, including draft standards and regula8 tions. Invited participants are to include a broad cross sec9 tion of the standards, accreditation, and user commu10 nities.

11 ‘‘(f) ADDITIONAL REQUIREMENTS.—In carrying out

12 this section, the Secretary shall satisfy the following re13 quirements:

14 ‘‘(1) The Outreach Program and the outreach

15 network shall be established and operated through

16 cooperation and cofunding among Federal, State,

17 and local governments, other public and private con18 tributors, and end users that the Secretary deter19 mines are appropriate for providing maximum bene20 fit to United States manufacturers.

21 ‘‘(2) The Outreach Program and the outreach

22 network shall utilize and leverage, to the extent

23 practicable, existing organizations, data bases, elec24 tronic networks, facilities, capabilities, and existing

25 standards for interconnection, and shall be designed
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1 to complement rather than supplant State and local

2 programs.

3 ‘‘(3) The Outreach Program and the outreach

4 network shall be subject to all applicable provisions

5 of law for the protection of trade secrets and busi6 ness confidential information.

7 ‘‘(4) Access to the services available through

8 the Outreach Program and information available

9 through the outreach network servicing the Outreach

10 Program shall be limited, as appropriate, to United

11 States companies, State and local governments,

12 United States universities and colleges, and United

13 States nonprofit organizations that the Secretary

14 deems appropriate.

15 ‘‘(5) Local or regional needs should determine

16 the management structure and staffing of the Manu17 facturing Outreach Centers. The Outreach Program

18 shall strive for geographical balance with the ulti19 mate goal of access for all United States manufac20 turers.

21 ‘‘(6) Manufacturing Outreach Centers should

22 have the capability to deliver outreach services di23 rectly to United States manufacturers, actively work

24 with, rather than supplant, the private sector, and to

25 the extent practicable, maximize the exposure of
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1 United States manufacturers to demonstrations of

2 modern technologies in use, including flexible manu3 facturing practices.

4 ‘‘(7) The Department of Commerce shall de5 velop mechanisms for—

6 ‘‘(A) soliciting the perspectives of United

7 States manufacturers using the services of the

8 Manufacturing Outreach Centers and Regional

9 Centers for the Transfer of Manufacturing

10 Technology; and

11 ‘‘(B) evaluating the effectiveness of the

12 Manufacturing Outreach Centers and Regional

13 Centers for the Transfer of Manufacturing

14 Technology.

15 ‘‘(g) PLAN AND REPORTS.—(1) Within 6 months

16 after the date of enactment of this title, the Secretary,

17 after consultation with the Under Secretary, the Director,

18 the Department of Commerce Technology Advisory Board,

19 other appropriate Federal agencies, and a cross-section of

20 potential participants in the Outreach Program, shall sub21 mit an initial plan for the implementation of this title to

22 Congress—

23 ‘‘(A) describing how the Secretary will carry out

24 the responsibility to create, operate, and support the

25 Outreach Program and the outreach network, in-
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1 cluding the interactive electronic linkage of Manu2 facturing Outreach Centers to the programs of the

3 Technology Administration and other appropriate

4 Federal, State, and local agencies;

5 ‘‘(B) establishing criteria and procedures, con6 sistent with the requirements of this title, for—

7 ‘‘(i) the selection of organizations to re8 ceive Department of Commerce services or fi9 nancial assistance as part of the Outreach Pro10 gram, including qualifications and training of

11 technology extension agents;

12 ‘‘(ii) access to services provided by partici13 pants in the Outreach Program and to informa14 tion available through the outreach network

15 servicing the Outreach Program; and

16 ‘‘(iii) the annual evaluation of the Out17 reach Program in achieving the purposes of this

18 title; and

19 ‘‘(C) evaluating the need for and the benefits of

20 a National Conference of States on Technology Ex21 tension, similar in structure to the National Con22 ference on Weights and Measures, and, if the Sec23 retary determines that such a Conference is advis24 able, developing, in consultation with the States and

25 other interested parties, a plan for the establish-
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1 ment, operation, funding, and evaluation of such a

2 Conference.

3 ‘‘(2) Within 1 year after the date of enactment of

4 this title, the Secretary, in consultation with the Under

5 Secretary, the Director, and the Department of Commerce

6 Technology Advisory Board, shall prepare and submit to

7 the Congress a 5-year plan for implementing the Outreach

8 Program and the outreach network and clearinghouse es9 tablished under subsections (d) and (e), respectively. Such

10 5-year plan shall identify appropriate methods for expand11 ing the Outreach Program in a geographically balanced

12 manner. Such 5-year plan shall include a detailed imple13 mentation plan and cost estimates and shall take into con14 sideration and build on the report submitted under para15 graph (1). In the preparation of such 5-year plan, the Sec16 retary shall provide an opportunity for public comment,

17 and the plan submitted to Congress shall include a sum18 mary of comments received. Such plan may not be imple19 mented until 90 days after its submission to the Congress.

20 ‘‘(3) Beginning with first year after submission of the

21 5-year plan under paragraph (2), the Secretary shall an22 nually report to the Congress, at the time of the Presi23 dent’s annual budget request to Congress, on—

24 ‘‘(A) progress made in achieving the purposes

25 of the Outreach Program described in subsection (a)
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1 using criteria and procedures established under

2 paragraph (1)(B)(iii);

3 ‘‘(B) changes proposed to the 5-year plan;

4 ‘‘(C) performance in adhering to schedules; and

5 ‘‘(D) any recommendations for legislative

6 changes necessary to enhance the Outreach Pro7 gram.

8 The report under this paragraph submitted at the end of

9 the fourth year of operation of the Outreach Program

10 shall include recommendations on whether to terminate

11 the Outreach Program or extend it for an additional pe12 riod not to exceed 5 years.’’.

13 SEC. 5. ADVANCED MANUFACTURING TECHNOLOGY DEVEL14 OPMENT PROGRAM.

15 Title III of the Stevenson-Wydler Technology Innova16 tion Act of 1980, as added by sections 2, 3, and 4 of this

17 Act, is further amended by adding at the end the following

18 new section:

19 ‘‘SEC. 304. ADVANCED MANUFACTURING TECHNOLOGY DE20 VELOPMENT PROGRAM.

21 ‘‘(a) ESTABLISHMENT.—The Secretary, through the

22 Under Secretary and the Director, shall establish an Ad23 vanced Manufacturing Technology Development Program

24 which shall include projects to develop advanced manufac25 turing systems, networks, electronic data exchange, and
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1 which shall be complementary with advanced manufactur2 ing technology development programs supported by other

3 Federal agencies.

4 ‘‘(b) PURPOSE.—The purpose of the Advanced Manu5 facturing Technology Development Program is to create

6 collaborative multiyear technology development programs

7 involving United States companies and, as appropriate, co8 operating with other Federal agencies and laboratories,

9 the States, worker organizations, universities and colleges,

10 independent research organizations, and other interested

11 persons, in order to develop, refine, test, and transfer de12 sign and manufacturing technologies and associated appli13 cations, including advanced computer integration and elec14 tronic networks for manufacturing information exchange.

15 ‘‘(c) PROGRAM COMPONENTS.—The Advanced Manu16 facturing Technology Development Program shall in17 clude—

18 ‘‘(1) the advanced manufacturing research and

19 development activities at the Institute; and

20 ‘‘(2) one or more technology development

21 testbeds within the United States, selected in ac22 cordance with procedures, including cost sharing, es23 tablished for the Advanced Technology Program es24 tablished under section 28 of the National Institute

25 of Standards and Technology Act (15 U.S.C. 278n),
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1 whose purpose shall be to develop, refine, and test

2 advanced manufacturing, data exchange, and

3 networking technologies and associated applications

4 and to facilitate the transfer of such technologies

5 and applications to United States manufacturers.

6 ‘‘(d) FUNCTIONS AND ACTIVITIES.—The Advanced

7 Manufacturing Technology Development Program, under

8 the coordination of the Secretary, through the Director,

9 shall—

10 ‘‘(1) test and, as appropriate, facilitate and

11 support the development of the equipment, computer

12 software, and systems integration necessary for the

13 successful operation within the United States of ad14 vanced design and manufacturing systems and asso15 ciated electronic networks;

16 ‘‘(2) establish at the Institute and the tech17 nology development testbed or testbeds—

18 ‘‘(A) prototype advanced computer-inte19 grated manufacturing systems;

20 ‘‘(B) prototype electronic networks linking

21 manufacturing systems; and

22 ‘‘(C) prototype clean manufacturing sys23 tems;

24 ‘‘(3) assist United States companies to develop

25 voluntary consensus standards relevant to advanced
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1 computer-integrated manufacturing operations, in2 cluding standards for networks, electronic data

3 interchange, and digital product data specifications;

4 ‘‘(4) help to make high-performance computing

5 and networking technologies an integral part of de6 sign and production processes where appropriate;

7 ‘‘(5) conduct research to identify and overcome

8 technical barriers to the successful and cost-effective

9 operation of advanced manufacturing systems and

10 networks and to promote and facilitate electronic

11 data exchange;

12 ‘‘(6) facilitate the efforts of United States com13 panies to develop and test new applications for man14 ufacturing systems, networks, and information ex15 change;

16 ‘‘(7) involve in the Advanced Manufacturing

17 Technology Development Program, to the maximum

18 extent practicable, both those United States manu19 facturers which make manufacturing technology and

20 related computer equipment and software, and Unit21 ed States companies which buy such technology,

22 equipment and software;

23 ‘‘(8) identify training needs, as appropriate, for

24 managers, engineers, and employees of United

25 States manufacturers in the operation and applica-
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1 tions of advanced manufacturing technologies and

2 networks, with particular emphasis on training for

3 production workers in the effective use of advanced

4 manufacturing technology;

5 ‘‘(9) work with United States companies, uni6 versities, independent research organizations, and

7 other interested parties to develop standards, tools,

8 and techniques for the use of advanced computer9 based training systems, including multi-media and

10 interactive learning technologies;

11 ‘‘(10) involve small businesses in its activities;

12 ‘‘(11) exchange information and personnel, as

13 appropriate, between the technology development

14 testbeds and the outreach network created under

15 section 303(d); and

16 ‘‘(12) coordinate its activities with the National

17 High-Performance Computing Program described in

18 section 101 of the High-Performance Computing Act

19 of 1991 (15 U.S.C. 5511) to ensure that both pro20 grams are complementary and compatible.

21 ‘‘(e) TESTBED AWARDS.—(1) In selecting applicants

22 to receive awards under subsection (c)(2) of this section,

23 the Secretary shall give preferential consideration to appli24 cants that have existing computer expertise in manufac25 turing applications and the ability to diffuse such expertise
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1 to United States companies, and that, in the case of joint

2 research and development ventures, include both suppliers

3 and users of advanced manufacturing technology. In the

4 case of systems described in subsection (d)(2)(C), the Sec5 retary shall also give preferential consideration to appli6 cants that have existing program expertise in clean manu7 facturing, including the areas of concurrent engineering,

8 materials research, and environmental science, and which

9 have a technology transfer mechanism in place to transfer

10 testbed results of a clean manufacturing program to in11 dustry participants.

12 ‘‘(2) An industry-led joint research and development

13 venture applying for an award under subsection (c)(2) of

14 this section may include one or more State research orga15 nizations, universities, Federal laboratories, independent

16 research organizations, or Regional Centers for the Trans17 fer of Manufacturing Technology (as created under section

18 25 of the National Institute of Standards and Technology

19 Act) and other organizations as the Secretary considers

20 appropriate.

21 ‘‘(f) ADVICE AND ASSISTANCE.—(1) Within 6 months

22 after the date of enactment of this title, and before any

23 request for proposals is issued, the Secretary shall hold

24 one or more workshops to solicit advice from United

25 States companies and from other Federal agencies, par-
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1 ticularly the Department of Defense, the Department of

2 Energy, and the National Aeronautics and Space Adminis3 tration, regarding the specific missions and activities of

4 the testbeds.

5 ‘‘(2) The Secretary shall, to the greatest extent pos6 sible, coordinate activities under this section with activities

7 of other Federal agencies and initiatives relating to com8 puter-aided acquisition and logistics support, electronic

9 data interchange, flexible computer-integrated manufac10 turing, and enterprise integration.

11 ‘‘(3) The Secretary may request and accept funds,

12 facilities, equipment, or personnel from other Federal

13 agencies in order to carry out this section.

14 ‘‘(g) ANTITRUST SAVINGS CLAUSE.—This section

15 shall not be construed to modify, impair, or supersede the

16 operation of the antitrust laws. For purposes of this sub17 section, the term ‘antitrust laws’ has the meaning given

18 it in subsection (a) of the first section of the Clayton Act

19 (15 U.S.C. 12(a)), except that such term includes the Act

20 of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.),

21 commonly known as the Robinson Patman Act, and sec22 tion 5 of the Federal Trade Commission Act (15 U.S.C.

23 45) to the extent that such section 5 applies to unfair

24 methods of competition.’’.
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1 SEC. 6. MISCELLANEOUS AND CONFORMING AMENDMENTS.

2 (a) DEFINITIONS.—Section 4 of the Stevenson3 Wydler Technology Innovation Act of 1980 (15 U.S.C.

4 3703) is amended by adding at the end the following new

5 paragraphs:

6 ‘‘(14) ‘Director’ means the Director of the Na7 tional Institute of Standards and Technology.

8 ‘‘(15) ‘Institute’ means the National Institute

9 of Standards and Technology.

10 ‘‘(16) ‘Assistant Secretary’ means the Assistant

11 Secretary of Commerce for Technology Policy.

12 ‘‘(17) ‘Advanced manufacturing technology’

13 means—

14 ‘‘(A) numerically-controlled machine tools,

15 robots, automated process control equipment,

16 computerized flexible manufacturing systems,

17 associated computer software, and other tech18 nology for improving manufacturing and indus19 trial production of goods, including bio20 technology products, which advance the state21 of-the-art; or

22 ‘‘(B) novel manufacturing techniques and

23 processes not previously generally available that

24 improve manufacturing quality, productivity,

25 and practices, including engineering design,

26 quality assurance, concurrent engineering, con-
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1 tinuous process production technology, inven2 tory management, upgraded worker skills, com3 munications with customers and suppliers, and

4 promotion of sustainable economic growth.

5 ‘‘(18) ‘Modern technology’ means the best avail6 able proven technology, techniques, and processes

7 appropriate to enhancing the productivity of manu8 facturers or to promoting sustainable economic

9 growth.

10 ‘‘(19) ‘Sustainable economic growth’ means eco11 nomic growth that enhances the national quality of

12 life and preserves environmental integrity.

13 ‘‘(20) The term ‘United States company’ means

14 an entity which the Secretary finds, based on a dem15 onstration by such entity—

16 ‘‘(A) maintains substantial employment in

17 the United States;

18 ‘‘(B) agrees, with respect to a technology

19 arising from assistance provided under this Act

20 or the Manufacturing Technology and Exten21 sion Act of 1995, to promote the manufacture

22 within the United States of products resulting

23 from that technology;
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1 ‘‘(C) agrees to procure parts and materials

2 for such products from competitive United

3 States suppliers; and

4 ‘‘(D) either—

5 ‘‘(i) is a United States-owned com6 pany; or

7 ‘‘(ii) is a company incorporated in the

8 United States that has a parent company

9 incorporated in a country which the Sec10 retary finds—

11 ‘‘(I) affords to United States12 owned companies opportunities com13 parable to those afforded to any other

14 company to participate in programs

15 and to have access to resources and

16 information equivalent to the opportu17 nities authorized under this Act or the

18 Manufacturing Technology and Ex19 tension Act of 1995 to foreign-owned

20 entities engaged in commerce in the

21 United States;

22 ‘‘(II) has a standards develop23 ment and conformity assessment proc24 ess that is open and transparent, and

25 that results in standards that are fair
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1 and reasonable and do not discrimi2 nate against United States products

3 and production processes;

4 ‘‘(III) affords to United States5 owned companies local investment op6 portunities comparable to those af7 forded any other company; and

8 ‘‘(IV) affords adequate and effec9 tive protection for the intellectual

10 property rights of United States11 owned companies.

12 ‘‘(21) The term ‘United States manufacturer’

13 means a United States company which the Secretary

14 finds, based on a demonstration by such company,

15 makes substantial investments in the United States

16 in research, development, and manufacturing (in17 cluding the manufacture of major components or

18 subassemblies in the United States).

19 ‘‘(22) The term ‘United States-owned company’

20 has the meaning given such term in section 28(j)(2)

21 of the National Institute of Standards and Tech22 nology Act (15 U.S.C. 278n(j)(2).

23 ‘‘(23) ‘Independent research organizations’

24 means nonprofit organizations organized primarily
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1 for the purpose of conducting or managing research

2 activities.’’.

3 (b) REDESIGNATIONS.—The Stevenson-Wydler Tech4 nology Innovation Act of 1980 (15 U.S.C. 3701 et seq.)

5 is amended—

6 (1) by inserting immediately after section 4 the

7 following new title heading:

8 ‘‘TITLE I—DEPARTMENT OF

9 COMMERCE AND RELATED

10 PROGRAMS’’;

11 (2) by redesignating sections 5 through 10 as

12 sections 101 through 106, respectively;

13 (3) by redesignating sections 16 through 22, as

14 sections 107 through 113, respectively;

15 (4) by inserting immediately after section 113

16 (as redesignated by paragraph (3) of this sub17 section) the following new title heading:

18 ‘‘TITLE II—FEDERAL

19 TECHNOLOGY TRANSFER’’;

20 (5) by redesignating sections 11 through 15 as

21 sections 201 through 205, respectively;

22 (6) by redesignating section 23 as section 206;

23 (7) in section 4—
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1 (A) by striking ‘‘section 5’’ each place it

2 appears and inserting in lieu thereof ‘‘section

3 101’’;

4 (B) in paragraphs (4) and (6), by striking

5 ‘‘section 6’’ and ‘‘section 8’’ each place they ap6 pear and inserting in lieu thereof ‘‘section 102’’

7 and ‘‘section 104’’, respectively; and

8 (C) in paragraph (13), by striking ‘‘section

9 6’’ and inserting in lieu thereof ‘‘section 102’’;

10 (8) in section 105 (as redesignated by para11 graph (2) of this subsection) by striking ‘‘section 6’’

12 each place it appears and inserting in lieu thereof

13 ‘‘section 102’’;

14 (9) in section 106(d) (as redesignated by para15 graph (2) of this subsection) by striking ‘‘7, 9, 11,

16 15, 17, or 20’’ and inserting in lieu thereof ‘‘103,

17 105, 108, 111, 201, or 205’’;

18 (10) in section 201(i) (as redesignated by para19 graph (5) of this subsection) by inserting ‘‘loan,

20 lease, or’’ after ‘‘may’’; and by inserting ‘‘Actions

21 taken under this subsection shall not be subject to

22 Federal requirements on the disposal of property.’’

23 after ‘‘activities.’’;
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1 (11) in section 202(b) (as redesignated by para2 graph (5) of this subsection) by striking ‘‘section

3 14’’ and inserting in lieu thereof ‘‘section 204’’;

4 (12) in section 204(a)(1) (as redesignated by

5 paragraph (5) of this subsection) by striking ‘‘sec6 tion 12’’ and inserting in lieu thereof ‘‘section 202’’;

7 (13) in section 113 (as redesignated by para8 graph (3) of this subsection) by striking ‘‘sections

9 11, 12, and 13’’ and inserting in lieu thereof ‘‘sec10 tions 201, 202, and 203’’;

11 (14) in section 206 (as redesignated by para12 graph (6) of this subsection)—

13 (A) by striking ‘‘section 11(b)’’ in sub14 section (a)(2) and inserting in lieu thereof ‘‘sec15 tion 201(b)’’; and

16 (B) by striking ‘‘section 6(d)’’ in sub17 section (b) and inserting in lieu thereof ‘‘section

18 102(d)’’; and

19 (15) by adding at the end of section 201 (as re20 designated by paragraph (5) of this subsection) the

21 following new subsection:

22 ‘‘(j) ADDITIONAL TECHNOLOGY TRANSFER MECHA23 NISMS.—In addition to the technology transfer mecha24 nisms set forth in this section and section 202 of this Act,

25 the heads of Federal departments and agencies also may
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1 transfer technologies through the technology transfer and

2 extension programs of the Department of Commerce and

3 the Department of Defense.’’.

4 SEC. 7. MANUFACTURING TECHNOLOGY CENTERS.

5 Section 25 of the National Institute of Standards and

6 Technology Act (15 U.S.C. 278k), is amended—

7 (1) by amending the section heading to read as

8 follows: ‘‘MANUFACTURING TECHNOLOGY CENTERS’’;

9 (2) in subsection (c)(5), by striking ‘‘which are

10 designed’’ and all that follows through ‘‘operation of

11 a Center’’ and inserting in lieu thereof ‘‘to a maxi12 mum of one-third Federal funding. Each Center

13 which receives financial assistance under this section

14 shall be evaluated during its sixth year of operation,

15 and at such subsequent times as the Secretary con16 siders appropriate, by an evaluation panel appointed

17 by the Secretary in the same manner as was the

18 evaluation panel previously appointed. The Secretary

19 shall not provide funding for additional years of the

20 Center’s operation unless the evaluation is positive

21 and the Secretary finds that continuation of funding

22 furthers the goals of the Department. Such addi23 tional Federal funding shall not exceed one-third of

24 the cost of the Center’s operations’’;

25 (3) by striking subsection (d); and
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1 (4) by adding at the end the following new sub2 sections:

3 ‘‘(d) If a Center receives a positive evaluation during

4 its third year of operation, the Director may, any time

5 after that evaluation, contract with the Center to provide

6 additional technology extension or transfer services above

7 and beyond the baseline activities of the Center. Such ad8 ditional services may include, but are not limited to, the

9 development and operation of the following:

10 ‘‘(1) Programs to assist United States compa11 nies that are engaged in manufacturing and their

12 employees, including front-line production workers,

13 in the Center’s region to learn and apply the tech14 nologies, techniques, and processes associated with

15 systems management technology, electronic data ex16 change, or improving manufacturing productivity.

17 ‘‘(2) Services focused on the testing, develop18 ment, and application of manufacturing and process

19 technologies within specific technical fields such as

20 advanced materials or electronics fabrication for the

21 purpose of assisting United States companies that

22 are engaged in manufacturing, both within the Cen23 ter’s original service region and in other regions, to

24 improve manufacturing quality, product design,
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1 workforce training, and production efficiency in

2 those specific technical fields.

3 ‘‘(3) Industry-led demonstration programs that

4 involve United States manufacturing technology con5 sortia to provide ongoing research, technology trans6 fer, and worker training assistance to their mem7 bers. An award under this paragraph shall be for no

8 more than $500,000 per year, and shall be subject

9 to renewal after a 1-year demonstration period.

10 ‘‘(e) In addition to any assistance provided or con11 tracts entered into with a Center under this section, the

12 Director is authorized to make separate and smaller

13 awards, through a competitive process, to nonprofit orga14 nizations which wish to work with a Center. Such awards

15 shall be for the purpose of enabling those organizations

16 to provide outreach services, in collaboration with the Cen17 ter, to United States manufacturers located in parts of

18 the region served by the Center which are not easily acces19 sible to the Center and which are not served by any other

20 manufacturing outreach center. Organizations which re21 ceive such awards shall be known as Local Manufacturing

22 Offices. In reviewing applications, the Director shall con23 sider the needs of rural as well as urban manufacturers.

24 No single award for a Local Manufacturing Office shall

25 be for more than three years, awards shall be renewable
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1 through the competitive awards process, and no award

2 shall be made unless the applicant provides matching

3 funds at least equal to the amount received under this sec4 tion.

5 ‘‘(f) In carrying out this section, the Director shall

6 coordinate his efforts with the plans for the National

7 Technology Outreach Program established under section

8 303 of the Stevenson-Wydler Technology Innovation Act

9 of 1980.’’.

10 SEC. 8. STATE TECHNOLOGY EXTENSION PROGRAM.

11 (a) ESTABLISHMENT.—Section 26(a) of the National

12 Institute of Standards and Technology Act (15 U.S.C.

13 278l(a)), is amended—

14 (1) by inserting immediately after ‘‘(a)’’ the fol15 lowing new sentence: ‘‘There is established within

16 the Institute a State Technology Extension Pro17 gram.’’; and

18 (2) by inserting ‘‘through that Program’’ imme19 diately after ‘‘technical assistance’’.

20 (b) ADDITIONAL AUTHORITIES.—Section 26 of the

21 National Institute of Standards and Technology Act (15

22 U.S.C. 278l) is amended by adding at the end the follow23 ing new subsection:

24 ‘‘(c) In addition to the general authorities listed in

25 subsection (b) of this section, the State Technology Exten-
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1 sion Program also may, through merit-based competitive

2 review processes—

3 ‘‘(1) make awards to States and conduct work4 shops, pursuant to section 5121(b) of the Omnibus

5 Trade and Competitiveness Act of 1988, in order to

6 help States improve their planning and coordination

7 of technology extension activities;

8 ‘‘(2) support technology demonstration projects

9 to help States provide technical assistance and serv10 ices to United States manufacturers that will im11 prove their productivity and competitiveness;

12 ‘‘(3) support State efforts to develop and test

13 innovative ways to help United States manufacturers

14 improve their technical capabilities;

15 ‘‘(4) support State efforts designed to help

16 United States manufacturers in rural as well as

17 urban areas adopt modern manufacturing tech18 nologies;

19 ‘‘(5) support State efforts to assist interested

20 United States manufacturers in the defense industry

21 to adapt to modern or advanced manufacturing tech22 nologies as they convert to nondefense or dual-use

23 purposes;

24 ‘‘(6) support worker technology education pro25 grams in the States at institutions such as research
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1 universities, community colleges, labor education

2 centers, labor-management committees, and worker

3 organizations in production technologies critical to

4 the Nation’s future, with an emphasis on high-per5 formance work systems, the skills necessary to use

6 modern or advanced manufacturing systems well;

7 ‘‘(7) help States develop programs to train per8 sonnel who in turn can provide technical skills to

9 managers and workers of United States manufactur10 ers; and

11 ‘‘(8) support State efforts to assist United

12 States manufacturers to develop on-the-job training

13 in modern and advanced manufacturing tech14 nologies, techniques, and processes and to promote

15 the development and adoption of modern and ad16 vanced manufacturing technologies.’’.

17 SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

18 There are authorized to be appropriated to the Sec19 retary of Commerce for carrying out the amendments

20 made by this Act—

21 (1) $146,600,000 for fiscal year 1996; and

22 (2) such sums as may be necessary for each of

23 the fiscal years 1997 through 2000.

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