IIA

104TH CONGRESS

1ST SESSION H. R. 2196

IN THE SENATE OF THE UNITED STATES

DECEMBER 13, 1995

Received; read twice and referred to the Committee on Commerce, Science,

and Transportation

AN ACT

To amend the Stevenson-Wydler Technology Innovation Act

of 1980 with respect to inventions made under cooperative research and development agreements, and for other

purposes.

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

2 This Act may be cited as the ‘‘National Technology

3 Transfer and Advancement Act of 1995’’.

4 SEC. 2. FINDINGS.

5 The Congress finds the following:

6 (1) Bringing technology and industrial innova7 tion to the marketplace is central to the economic,

8 environmental, and social well-being of the people of

9 the United States.

10 (2) The Federal Government can help United

11 States business to speed the development of new

12 products and processes by entering into cooperative

13 research and development agreements which make

14 available the assistance of Federal laboratories to

15 the private sector, but the commercialization of tech16 nology and industrial innovation in the United

17 States depends upon actions by business.

18 (3) The commercialization of technology and in19 dustrial innovation in the United States will be en20 hanced if companies, in return for reasonable com21 pensation to the Federal Government, can more eas22 ily obtain exclusive licenses to inventions which de23 velop as a result of cooperative research with sci24 entists employed by Federal laboratories.
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1 SEC. 3. USE OF FEDERAL TECHNOLOGY.

2 Subparagraph (B) of section 11(e)(7) of the Steven3 son-Wydler Technology Innovation Act of 1980 (15 U.S.C.

4 3710(e)(7)(B)) is amended to read as follows:

5 ‘‘(B) A transfer shall be made by any Federal agency

6 under subparagraph (A), for any fiscal year, only if the

7 amount so transferred by that agency (as determined

8 under such subparagraph) would exceed $10,000.’’.

9 SEC. 4. TITLE TO INTELLECTUAL PROPERTY ARISING

10 FROM COOPERATIVE RESEARCH AND DEVEL11 OPMENT AGREEMENTS.

12 Subsection (b) of section 12 of the Stevenson-Wydler

13 Technology Innovation Act of 1980 (15 U.S.C. 3710a(b))

14 is amended to read as follows:

15 ‘‘(b) ENUMERATED AUTHORITY.—(1) Under an

16 agreement entered into pursuant to subsection (a)(1), the

17 laboratory may grant, or agree to grant in advance, to

18 a collaborating party patent licenses or assignments, or

19 options thereto, in any invention made in whole or in part

20 by a laboratory employee under the agreement, for reason21 able compensation when appropriate. The laboratory shall

22 ensure, through such agreement, that the collaborating

23 party has the option to choose an exclusive license for a

24 field of use for any such invention under the agreement

25 or, if there is more than one collaborating party, that the

26 collaborating parties are offered the option to hold licens-
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1 ing rights that collectively encompass the rights that

2 would be held under such an exclusive license by one party.

3 In consideration for the Government’s contribution under

4 the agreement, grants under this paragraph shall be sub5 ject to the following explicit conditions:

6 ‘‘(A) A nonexclusive, nontransferable, irrev7 ocable, paid-up license from the collaborating party

8 to the laboratory to practice the invention or have

9 the invention practiced throughout the world by or

10 on behalf of the Government. In the exercise of such

11 license, the Government shall not publicly disclose

12 trade secrets or commercial or financial information

13 that is privileged or confidential within the meaning

14 of section 552(b)(4) of title 5, United States Code,

15 or which would be considered as such if it had been

16 obtained from a non-Federal party.

17 ‘‘(B) If a laboratory assigns title or grants an

18 exclusive license to such an invention, the Govern19 ment shall retain the right—

20 ‘‘(i) to require the collaborating party to

21 grant to a responsible applicant a nonexclusive,

22 partially exclusive, or exclusive license to use

23 the invention in the applicant’s licensed field of

24 use, on terms that are reasonable under the cir25 cumstances; or
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1 ‘‘(ii) if the collaborating party fails to

2 grant such a license, to grant the license itself.

3 ‘‘(C) The Government may exercise its right re4 tained under subparagraph (B) only if the Govern5 ment finds that—

6 ‘‘(i) the action is necessary to meet health

7 or safety needs that are not reasonably satisfied

8 by the collaborating party;

9 ‘‘(ii) the action is necessary to meet re10 quirements for public use specified by Federal

11 regulations, and such requirements are not rea12 sonably satisfied by the collaborating party; or

13 ‘‘(iii) the collaborating party has failed to

14 comply with an agreement containing provisions

15 described in subsection (c)(4)(B).

16 ‘‘(2) Under agreements entered into pursuant to sub17 section (a)(1), the laboratory shall ensure that a collabo18 rating party may retain title to any invention made solely

19 by its employee in exchange for normally granting the

20 Government a nonexclusive, nontransferable, irrevocable,

21 paid-up license to practice the invention or have the inven22 tion practiced throughout the world by or on behalf of the

23 Government for research or other Government purposes.

24 ‘‘(3) Under an agreement entered into pursuant to

25 subsection (a)(1), a laboratory may—
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1 ‘‘(A) accept, retain, and use funds, personnel,

2 services, and property from a collaborating party

3 and provide personnel, services, and property to a

4 collaborating party;

5 ‘‘(B) use funds received from a collaborating

6 party in accordance with subparagraph (A) to hire

7 personnel to carry out the agreement who will not be

8 subject to full-time-equivalent restrictions of the

9 agency;

10 ‘‘(C) to the extent consistent with any applica11 ble agency requirements or standards of conduct,

12 permit an employee or former employee of the lab13 oratory to participate in an effort to commercialize

14 an invention made by the employee or former em15 ployee while in the employment or service of the

16 Government; and

17 ‘‘(D) waive, subject to reservation by the Gov18 ernment of a nonexclusive, irrevocable, paid-up li19 cense to practice the invention or have the invention

20 practiced throughout the world by or on behalf of

21 the Government, in advance, in whole or in part, any

22 right of ownership which the Federal Government

23 may have to any subject invention made under the

24 agreement by a collaborating party or employee of a

25 collaborating party.
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1 ‘‘(4) A collaborating party in an exclusive license in

2 any invention made under an agreement entered into pur3 suant to subsection (a)(1) shall have the right of enforce4 ment under chapter 29 of title 35, United States Code.

5 ‘‘(5) A Government-owned, contractor-operated lab6 oratory that enters into a cooperative research and devel7 opment agreement pursuant to subsection (a)(1) may use

8 or obligate royalties or other income accruing to the lab9 oratory under such agreement with respect to any inven10 tion only—

11 ‘‘(A) for payments to inventors;

12 ‘‘(B) for a purposes described in clauses (i),

13 (ii), (iii), and (iv) of section 14(a)(1)(B); and

14 ‘‘(C) for scientific research and development

15 consistent with the research and development mis16 sions and objectives of the laboratory.’’.

17 SEC. 5. DISTRIBUTION OF INCOME FROM INTELLECTUAL

18 PROPERTY RECEIVED BY FEDERAL LABORA19 TORIES.

20 Section 14 of the Stevenson-Wydler Technology Inno21 vation Act of 1980 (15 U.S.C. 3710c) is amended—

22 (1) by amending subsection (a)(1) to read as

23 follows:

24 ‘‘(1) Except as provided in paragraphs (2) and (4), any

25 royalties or other payments received by a Federal agency
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1 from the licensing and assignment of inventions under

2 agreements entered into by Federal laboratories under

3 section 12, and from the licensing of inventions of Federal

4 laboratories under section 207 of title 35, United States

5 Code, or under any other provision of law, shall be re6 tained by the laboratory which produced the invention and

7 shall be disposed of as follows:

8 ‘‘(A)(i) The head of the agency or laboratory,

9 or such individual’s designee, shall pay each year the

10 first $2,000, and thereafter at least 15 percent, of

11 the royalties or other payments to the inventor or

12 coinventors.

13 ‘‘(ii) An agency or laboratory may provide ap14 propriate incentives, from royalties, or other pay15 ments, to laboratory employees who are not an in16 ventor of such inventions but who substantially in17 creased the technical value of such inventions.

18 ‘‘(iii) The agency or laboratory shall retain the

19 royalties and other payments received from an inven20 tion until the agency or laboratory makes payments

21 to employees of a laboratory under clause (i) or (ii).

22 ‘‘(B) The balance of the royalties or other pay23 ments shall be transferred by the agency to its lab24 oratories, with the majority share of the royalties or

25 other payments from any invention going to the lab-
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1 oratory where the invention occurred. The royalties

2 or other payments so transferred to any laboratory

3 may be used or obligated by that laboratory during

4 the fiscal year in which they are received or during

5 the succeeding fiscal year—

6 ‘‘(i) to reward scientific, engineering, and

7 technical employees of the laboratory, including

8 developers of sensitive or classified technology,

9 regardless of whether the technology has com10 mercial applications;

11 ‘‘(ii) to further scientific exchange among

12 the laboratories of the agency;

13 ‘‘(iii) for education and training of employ14 ees consistent with the research and develop15 ment missions and objectives of the agency or

16 laboratory, and for other activities that increase

17 the potential for transfer of the technology of

18 the laboratories of the agency;

19 ‘‘(iv) for payment of expenses incidental to

20 the administration and licensing of intellectual

21 property by the agency or laboratory with re22 spect to inventions made at that laboratory, in23 cluding the fees or other costs for the services

24 of other agencies, persons, or organizations for
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1 intellectual property management and licensing

2 services; or

3 ‘‘(v) for scientific research and develop4 ment consistent with the research and develop5 ment missions and objectives of the laboratory.

6 ‘‘(C) All royalties or other payments retained by

7 the agency or laboratory after payments have been

8 made pursuant to subparagraphs (A) and (B) that

9 is unobligated and unexpended at the end of the sec10 ond fiscal year succeeding the fiscal year in which

11 the royalties and other payments were received shall

12 be paid into the Treasury.’’;

13 (2) in subsection (a)(2)—

14 (A) by inserting ‘‘or other payments’’ after

15 ‘‘royalties’’; and

16 (B) by striking ‘‘for the purposes described

17 in clauses (i) through (iv) of paragraph (1)(B)

18 during that fiscal year or the succeeding fiscal

19 year’’ and inserting in lieu thereof ‘‘under para20 graph (1)(B)’’;

21 (3) in subsection (a)(3), by striking ‘‘$100,000’’

22 both places it appears and inserting ‘‘$150,000’’;

23 (4) in subsection (a)(4)—

24 (A) by striking ‘‘income’’ each place it ap25 pears and inserting in lieu thereof ‘‘payments’’;
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1 (B) by striking ‘‘the payment of royalties

2 to inventors’’ in the first sentence thereof and

3 inserting in lieu thereof ‘‘payments to inven4 tors’’;

5 (C) by striking ‘‘clause (i) of paragraph

6 (1)(B)’’ and inserting in lieu thereof ‘‘clause

7 (iv) of paragraph (1)(B)’’;

8 (D) by striking ‘‘payment of the royalties,’’

9 in the second sentence thereof and inserting in

10 lieu thereof ‘‘offsetting the payments to inven11 tors,’’; and

12 (E) by striking ‘‘clauses (i) through (iv)

13 of’’; and

14 (5) by amending paragraph (1) of subsection

15 (b) to read as follows:

16 ‘‘(1) by a contractor, grantee, or participant, or

17 an employee of a contractor, grantee, or participant,

18 in an agreement or other arrangement with the

19 agency, or’’.

20 SEC. 6. EMPLOYEE ACTIVITIES.

21 Section 15(a) of the Stevenson-Wydler Technology

22 Innovation Act of 1980 (15 U.S.C. 3710d(a)) is amend23 ed—

24 (1) by striking ‘‘the right of ownership to an in25 vention under this Act’’ and inserting in lieu thereof
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1 ‘‘ownership of or the right of ownership to an inven2 tion made by a Federal employee’’; and

3 (2) by inserting ‘‘obtain or’’ after ‘‘the Govern4 ment, to’’.

5 SEC. 7. AMENDMENT TO BAYH–DOLE ACT.

6 Section 210(e) of title 35, United States Code, is

7 amended by striking ‘‘, as amended by the Federal Tech8 nology Transfer Act of 1986,’’.

9 SEC. 8. NATIONAL INSTITUTE OF STANDARDS AND TECH10 NOLOGY ACT AMENDMENTS.

11 The National Institute of Standards and Technology

12 Act (15 U.S.C. 271 et seq.) is amended—

13 (1) in section 10(a)—

14 (A) by striking ‘‘nine’’ and inserting in lieu

15 thereof ‘‘15’’; and

16 (B) by striking ‘‘five’’ and inserting in lieu

17 thereof ‘‘10’’;

18 (2) in section 15—

19 (A) by striking ‘‘Pay Act of 1945; and’’

20 and inserting in lieu thereof ‘‘Pay Act of

21 1945;’’; and

22 (B) by inserting ‘‘; and (h) the provision of

23 transportation services for employees of the In24 stitute between the facilities of the Institute

25 and nearby public transportation, notwithstand-
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1 ing section 1344 of title 31, United States

2 Code’’ after ‘‘interests of the Government’’; and

3 (3) in section 19—

4 (A) by inserting ‘‘, subject to the availabil5 ity of appropriations,’’ after ‘‘post-doctoral fel6 lowship program’’; and

7 (B) by striking ‘‘nor more than forty’’ and

8 inserting in lieu thereof ‘‘nor more than 60’’.

9 SEC. 9. RESEARCH EQUIPMENT.

10 Section 11(i) of the Stevenson-Wydler Technology In11 novation Act of 1980 (15 U.S.C. 3710(i)) is amended—

12 (1) by inserting ‘‘loan, lease,’’ after ‘‘depart13 ment, may’’; and

14 (2) by inserting ‘‘Actions taken under this sub15 section shall not be subject to Federal requirements

16 on the disposal of property.’’ after ‘‘education and

17 research activities.’’.

18 SEC. 10. PERSONNEL.

19 The personnel management demonstration project es20 tablished under section 10 of the National Bureau of

21 Standards Authorization Act for Fiscal Year 1987 (15

22 U.S.C. 275 note) is extended indefinitely.

23 SEC. 11. FASTENER QUALITY ACT AMENDMENTS.

24 (a) SECTION 2 AMENDMENTS.—Section 2 of the Fas25 tener Quality Act (15 U.S.C. 5401) is amended—
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1 (1) by striking subsection (a)(4), and redesig2 nating paragraphs (5) through (9) as paragraphs

3 (4) through (8), respectively;

4 (2) in subsection (a)(7), as so redesignated by

5 paragraph (1) of this subsection, by striking ‘‘by lot

6 number’’; and

7 (3) in subsection (b), by striking ‘‘used in criti8 cal applications’’ and inserting in lieu thereof ‘‘in

9 commerce’’.

10 (b) SECTION 3 AMENDMENTS.—Section 3 of the Fas11 tener Quality Act (15 U.S.C. 5402) is amended—

12 (1) in paragraph (1)(B) by striking ‘‘having a

13 minimum tensile strength of 150,000 pounds per

14 square inch’’;

15 (2) in paragraph (2), by inserting ‘‘consensus’’

16 after ‘‘or any other’’;

17 (3) in paragraph (5)—

18 (A) by inserting ‘‘or’’ after ‘‘standard or

19 specification,’’ in subparagraph (B);

20 (B) by striking ‘‘or’’ at the end of subpara21 graph (C);

22 (C) by striking subparagraph (D); and

23 (D) by inserting ‘‘or produced in accord24 ance with ASTM F 432’’ after ‘‘307 Grade A’’;
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1 (4) in paragraph (6) by striking ‘‘other person’’

2 and inserting in lieu thereof ‘‘government agency’’;

3 (5) in paragraph (8) by striking ‘‘Standard’’

4 and inserting in lieu thereof ‘‘Standards’’;

5 (6) by striking paragraph (11) and redesignat6 ing paragraphs (12) through (15) as paragraphs

7 (11) through (14), respectively;

8 (7) in paragraph (13), as so redesignated by

9 paragraph (6) of this subsection, by striking ‘‘, a

10 government agency’’ and all that follows through

11 ‘‘markings of any fastener’’ and inserting in lieu

12 thereof ‘‘or a government agency’’; and

13 (8) in paragraph (14), as so redesignated by

14 paragraph (6) of this subsection, by inserting ‘‘for

15 the purpose of achieving a uniform hardness’’ after

16 ‘‘quenching and tempering’’.

17 (c) SECTION 4 REPEAL.—Section 4 of the Fastener

18 Quality Act (15 U.S.C. 5403) is repealed.

19 (d) SECTION 5 AMENDMENTS.—Section 5 of the Fas20 tener Quality Act (15 U.S.C. 5404) is amended—

21 (1) in subsection (a)(1)(B) and (2)(A)(i) by

22 striking ‘‘subsections (b) and (c)’’ and inserting in

23 lieu thereof ‘‘subsections (b), (c), and (d)’’;
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1 (2) in subsection (c)(2) by striking ‘‘or, where

2 applicable’’ and all that follows through ‘‘section

3 7(c)(1)’’;

4 (3) in subsection (c)(3) by striking ‘‘, such as

5 the chemical, dimensional, physical, mechanical, and

6 any other’’;

7 (4) in subsection (c)(4) by inserting ‘‘except as

8 provided in subsection (d),’’ before ‘‘state whether’’;

9 and

10 (5) by adding at the end the following new sub11 section:

12 ‘‘(d) ALTERNATIVE PROCEDURE FOR CHEMICAL

13 CHARACTERISTICS.—Notwithstanding the requirements of

14 subsections (b) and (c), a manufacturer shall be deemed

15 to have demonstrated, for purposes of subsection (a)(1),

16 that the chemical characteristics of a lot conform to the

17 standards and specifications to which the manufacturer

18 represents such lot has been manufactured if the following

19 requirements are met:

20 ‘‘(1) The coil or heat number of metal from

21 which such lot was fabricated has been inspected

22 and tested with respect to its chemical characteris23 tics by a laboratory accredited in accordance with

24 the procedures and conditions specified by the Sec25 retary under section 6.
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1 ‘‘(2) Such laboratory has provided to the manu2 facturer, either directly or through the metal manu3 facturer, a written inspection and testing report,

4 which shall be in a form prescribed by the Secretary

5 by regulation, listing the chemical characteristics of

6 such coil or heat number.

7 ‘‘(3) The report described in paragraph (2) in8 dicates that the chemical characteristics of such coil

9 or heat number conform to those required by the

10 standards and specifications to which the manufac11 turer represents such lot has been manufactured.

12 ‘‘(4) The manufacturer demonstrates that such

13 lot has been fabricated from the coil or heat number

14 of metal to which the report described in paragraphs

15 (2) and (3) relates.

16 In prescribing the form of report required by subsection

17 (c), the Secretary shall provide for an alternative to the

18 statement required by subsection (c)(4), insofar as such

19 statement pertains to chemical characteristics, for cases

20 in which a manufacturer elects to use the procedure per21 mitted by this subsection.’’.

22 (e) SECTION 6 AMENDMENT.—Section 6(a)(1) of the

23 Fastener Quality Act (15 U.S.C. 5405(a)(1)) is amended

24 by striking ‘‘Within 180 days after the date of enactment

25 of this Act, the’’ and inserting in lieu thereof ‘‘The’’.
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1 (f) SECTION 7 AMENDMENTS.—Section 7 of the Fas2 tener Quality Act (15 U.S.C. 5406) is amended—

3 (1) by amending subsection (a) to read as fol4 lows:

5 ‘‘(a) DOMESTICALLY PRODUCED FASTENERS.—It

6 shall be unlawful for a manufacturer to sell any shipment

7 of fasteners covered by this Act which are manufactured

8 in the United States unless the fasteners—

9 ‘‘(1) have been manufactured according to the

10 requirements of the applicable standards and speci11 fications and have been inspected and tested by a

12 laboratory accredited in accordance with the proce13 dures and conditions specified by the Secretary

14 under section 6; and

15 ‘‘(2) an original laboratory testing report de16 scribed in section 5(c) and a manufacturer’s certifi17 cate of conformance are on file with the manufac18 turer, or under such custody as may be prescribed

19 by the Secretary, and available for inspection.’’;

20 (2) in subsection (c)(2) by inserting ‘‘to the

21 same’’ after ‘‘in the same manner and’’;

22 (3) in subsection (d)(1) by striking ‘‘certificate’’

23 and inserting in lieu thereof ‘‘test report’’; and

24 (4) by striking subsections (e), (f), and (g) and

25 inserting in lieu thereof the following:
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1 ‘‘(e) COMMINGLING.—It shall be unlawful for any

2 manufacturer, importer, or private label distributor to

3 commingle like fasteners from different lots in the same

4 container, except that such manufacturer, importer, or

5 private label distributor may commingle like fasteners of

6 the same type, grade, and dimension from not more than

7 two tested and certified lots in the same container during

8 repackaging and plating operations. Any container which

9 contains fasteners from two lots shall be conspicuously

10 marked with the lot identification numbers of both lots.

11 ‘‘(f) SUBSEQUENT PURCHASER.—If a person who

12 purchases fasteners for any purpose so requests either

13 prior to the sale or at the time of sale, the seller shall

14 conspicuously mark the container of the fasteners with the

15 lot number from which such fasteners were taken.’’.

16 (g) SECTION 9 AMENDMENT.—Section 9 of the Fas17 tener Quality Act (15 U.S.C. 5408) is amended by adding

18 at the end the following new subsection:

19 ‘‘(d) ENFORCEMENT.—The Secretary may designate

20 officers or employees of the Department of Commerce to

21 conduct investigations pursuant to this Act. In conducting

22 such investigations, those officers or employees may, to

23 the extent necessary or appropriate to the enforcement of

24 this Act, exercise such authorities as are conferred upon
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1 them by other laws of the United States, subject to policies

2 and procedures approved by the Attorney General.’’.

3 (h) SECTION 10 AMENDMENTS.—Section 10 of the

4 Fastener Quality Act (15 U.S.C. 5409) is amended—

5 (1) in subsections (a) and (b), by striking ‘‘10

6 years’’ and inserting in lieu thereof ‘‘5 years’’; and

7 (2) in subsection (b), by striking ‘‘any subse8 quent’’ and inserting in lieu thereof ‘‘the subse9 quent’’.

10 (i) SECTION 13 AMENDMENT.—Section 13 of the

11 Fastener Quality Act (15 U.S.C. 5412) is amended by

12 striking ‘‘within 180 days after the date of enactment of

13 this Act’’.

14 (j) SECTION 14 REPEAL.—Section 14 of the Fastener

15 Quality Act (15 U.S.C. 5413) is repealed.

16 SEC. 12. STANDARDS CONFORMITY.

17 (a) USE OF STANDARDS.—Section 2(b) of the Na18 tional Institute of Standards and Technology Act (15

19 U.S.C. 272(b)) is amended—

20 (1) in paragraph (2), by striking ‘‘, including

21 comparing standards’’ and all that follows through

22 ‘‘Federal Government’’;

23 (2) by redesignating paragraphs (3) through

24 (11) as paragraphs (4) through (12), respectively;

25 and
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1 (3) by inserting after paragraph (2) the follow2 ing new paragraph:

3 ‘‘(3) to compare standards used in scientific in4 vestigations, engineering, manufacturing, commerce,

5 industry, and educational institutions with the

6 standards adopted or recognized by the Federal Gov7 ernment and to coordinate the use by Federal agen8 cies of private sector standards, emphasizing where

9 possible the use of standards developed by private,

10 consensus organizations;’’.

11 (b) CONFORMITY ASSESSMENT ACTIVITIES.—Section

12 2(b) of the National Institute of Standards and Tech13 nology Act (15 U.S.C. 272(b)) is amended—

14 (1) by striking ‘‘and’’ at the end of paragraph

15 (11), as so redesignated by subsection (a)(2) of this

16 section;

17 (2) by striking the period at the end of para18 graph (12), as so redesignated by subsection (a)(2)

19 of this section, and inserting in lieu thereof ‘‘; and’’;

20 and

21 (3) by adding at the end the following new

22 paragraph:

23 ‘‘(13) to coordinate Federal, State, local, and

24 private sector standards conformity assessment ac25 tivities, with the goal of eliminating unnecessary du-
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1 plication and complexity in the development and pro2 mulgation of conformity assessment requirements

3 and measures.’’.

4 (c) TRANSMITTAL OF PLAN TO CONGRESS.—The Na5 tional Institute of Standards and Technology shall, by

6 January 1, 1996, transmit to the Congress a plan for im7 plementing the amendments made by this section.

8 (d) UTILIZATION OF CONSENSUS STANDARDS BY

9 FEDERAL AGENCIES; REPORTS.—(1) To the extent prac10 ticable, all Federal agencies and departments shall use,

11 for procurement and regulatory applications, standards

12 that are developed or adopted by voluntary, private sector,

13 consensus standards bodies.

14 (2) Federal agencies and departments shall consult

15 with voluntary, private sector, consensus standards bodies,

16 and shall participate with such bodies in the development

17 of standards, as appropriate in carrying out paragraph

18 (1).

19 (3) If a Federal agency or department elects to de20 velop, for procurement or regulatory applications, stand21 ards that are not developed or adopted by voluntary, pri22 vate sector, consensus standards bodies, the head of such

23 agency or department shall transmit to the Office of Man24 agement and Budget, via the National Institute of Stand25 ards and Technology, an explanation of the reasons for
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1 developing such standards. The Office of Management and

2 Budget, with the assistance of the National Institute of

3 Standards and Technology, shall annually transmit to the

4 Congress explanations concerning exceptions made under

5 this subsection.

6 SEC. 13. SENSE OF CONGRESS.

7 It is the sense of the Congress that the Malcolm

8 Baldrige National Quality Award program offers substan9 tial benefits to United States industry, and that all funds

10 appropriated for such program should be spent in support

11 of the goals of the program.

Passed the House of Representatives December 12,

1995.

Attest: ROBIN H. CARLE,

Clerk.