IIA

103D CONGRESS

1ST 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

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.

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

3 TITLE I—GENERAL PROVISIONS

4 SEC. 101. SHORT TITLE; TABLE OF CONTENTS.

5 (a) SHORT TITLE.—This Act may be cited as the

6 ‘‘National Competitiveness Act of 1993’’.
2

•HR 820 RFS

1 (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.
3

•HR 820 RFS

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.

1 SEC. 102. FINDINGS.

2 The Congress finds that—

3 (1) the creation, development, and adoption of

4 advanced technologies are significant determinants
4

•HR 820 RFS

1 of sustainable economic growth, productivity im2 provement, and competitive standing;

3 (2) over the last decade, the rate of advanced

4 technology adoption in the United States has been

5 about half that of some prominent foreign nations

6 and has contributed to a relative decline in United

7 States industrial competitiveness;

8 (3) maintaining a highly competitive manufac9 turing base in the United States is essential for eco10 nomic prosperity and national welfare and requires

11 continuous development and adoption of advanced

12 manufacturing technologies that will enable United

13 States manufacturers to develop innovative products

14 rapidly and manufacture goods of the highest quality

15 at competitive prices;

16 (4) there is general agreement on which fields

17 of technology are critical for economic competitive18 ness through the first decade of the next century,

19 but the United States Government must pursue a

20 comprehensive strategy to ensure that the appro21 priate research, development, and applications activi22 ties and other reforms occur so these technologies

23 are readily available to United States manufacturers

24 for incorporation into products made in the United

25 States;
5

•HR 820 RFS

1 (5) technology-based products of the twenty2 first century must be developed incorporating the

3 values of sustainable development, including low en4 ergy and material use, safety, recyclability, and

5 minimal pollution;

6 (6) the cost of and difficulty in obtaining in7 vestment capital for small high technology compa8 nies are significant deterrents to their formation, de9 velopment, and growth;

10 (7) standardization of weights and measures,

11 including development and promotion of product and

12 quality standards, has a significant role to play in

13 competitiveness;

14 (8) strategic technology planning for sustain15 able economic growth, the support of critical civilian

16 technology research, development, and application,

17 and advancement of manufacturing technology re18 search, development, and adoption are appropriate

19 Government roles; and

20 (9) programs established under this Act, and

21 the amendments made by this Act, shall be funded

22 as a result of shifting the total Federal investment

23 in research and development to achieve a balance be24 tween support for defense and civilian activities, and
6

•HR 820 RFS

1 shall not be financed through additional deficit

2 spending.

3 SEC. 103. PURPOSES.

4 The purposes of this Act are to—

5 (1) promote and facilitate the creation, develop6 ment, and adoption of technologies by United States

7 companies throughout the Nation that will contrib8 ute significantly to United States competitiveness,

9 employment, and sustainable economic growth;

10 (2) improve the competitiveness of United

11 States manufacturers, particularly small businesses,

12 by developing a nationwide technology outreach pro13 gram to improve access to information, expertise,

14 technology, and management practices required to

15 compete throughout the world;

16 (3) promote the development and rapid applica17 tion of advanced manufacturing technologies and

18 processes by United States manufacturers, with em19 phasis on environmentally sound practices and sus20 tainable economic growth;

21 (4) stimulate long-term investment in United

22 States companies engaged in development or utiliza23 tion of critical or other advanced technologies;

24 (5) establish mechanisms to ensure synergistic

25 linkages between Federal, State, and local initiatives
7

•HR 820 RFS

1 aimed at enhancing the competitiveness of United

2 States companies;

3 (6) enhance and expand the core programs of

4 the National Institute of Standards and Technology,

5 including the Advanced Technology Program;

6 (7) monitor and assess foreign technology capa7 bilities relative to those of the United States in order

8 to assist United States companies and policymakers

9 in identifying and responding to competitive oppor10 tunities and challenges; and

11 (8) facilitate cooperation among Federal agen12 cies with the goal of achieving an integrated national

13 effort to improve United States competitiveness, em14 ployment, and sustainable growth.

15 SEC. 104. DEFINITIONS.

16 For purposes of this Act—

17 (1) the term ‘‘advanced manufacturing tech18 nology’’ has the meaning given such term in section

19 4 of the Stevenson-Wydler Technology Innovation

20 Act of 1980, as amended by section 206(a) of this

21 Act;

22 (2) the term ‘‘critical technologies’’ means tech23 nologies identified as critical technologies pursuant

24 to section 603(d) of the National Science and Tech-
8

•HR 820 RFS

1 nology Policy, Organization, and Priorities Act of

2 1976 (42 U.S.C. 6683(d));

3 (3) the term ‘‘Director’’ means the Director of

4 the Institute;

5 (4) the term ‘‘Institute’’ means the National In6 stitute of Standards and Technology;

7 (5) the term ‘‘modern technology’’ has the

8 meaning given such term in section 4 of the Steven9 son-Wydler Technology Innovation Act of 1980, as

10 amended by section 206(a) of this Act;

11 (6) the term ‘‘Secretary’’ means the Secretary

12 of Commerce;

13 (7) the term ‘‘small business’’ means a United

14 States company that is a small business within the

15 meaning given such term in the Small Business Act;

16 (8) the term ‘‘sustainable economic growth’’ has

17 the meaning given such term in section 4 of the Ste18 venson-Wydler Technology Innovation Act of 1980,

19 as amended by section 206(a) of this Act;

20 (9) the term ‘‘State’’ means each of the several

21 States, the District of Columbia, the Commonwealth

22 of Puerto Rico, the Virgin Islands, Guam, American

23 Samoa, the Commonwealth of the Northern Mariana

24 Islands, and any other territory or possession of the

25 United States;
9

•HR 820 RFS

1 (10) the term ‘‘United States’’ means the sev2 eral States, the District of Columbia, the Common3 wealth of Puerto Rico, the Virgin Islands, Guam,

4 American Samoa, the Commonwealth of the North5 ern Mariana Islands, and any other territory or pos6 session of the United States;

7 (11) the term ‘‘United States company’’ has the

8 meaning given such term in section (4) of the Ste9 venson-Wydler Technology Innovation Act of 1980,

10 as amended by section 206(a) of this Act;

11 (12) the term ‘‘United States manufacturer’’

12 has the meaning given such term in section 4 of the

13 Stevenson-Wydler Technology Innovation Act of

14 1980, as amended by section 206(a) of this Act; and

15 (13) the term ‘‘Under Secretary’’ means the

16 Under Secretary of Commerce for Technology.

17 TITLE II—MANUFACTURING

18 Subtitle A—Manufacturing

19 Technology and Extension

20 SEC. 201. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Manufacturing

22 Technology and Extension Act of 1993’’.
10

•HR 820 RFS

1 SEC. 202. FINDINGS, PURPOSE, AND STATEMENT OF POL2 ICY.

3 The Stevenson-Wydler Technology Innovation Act of

4 1980 (15 U.S.C. 3701 et seq.) is amended by adding at

5 the end the following new title:

6 ‘‘TITLE III—MANUFACTURING

7 TECHNOLOGY

8 ‘‘SEC. 301. FINDINGS, PURPOSE, AND STATEMENT OF POL9 ICY.

10 ‘‘(a) FINDINGS.—Congress finds and declares the fol11 lowing:

12 ‘‘(1) United States manufacturers, especially

13 small businesses, require the adoption and imple14 mentation of both modern and advanced manufac15 turing and process technologies to meet the chal16 lenge of foreign competition.

17 ‘‘(2) The development and application of mod18 ern and advanced manufacturing technologies are

19 vital to the sustainable economic growth, standard of

20 living, competitiveness in world markets, and na21 tional security and welfare of the United States.

22 ‘‘(3) New developments in flexible, computer-in23 tegrated manufacturing, electronic manufacturing

24 communications networks, and other new tech25 nologies make possible dramatic improvements

26 across all industrial sectors in productivity, quality,
11

•HR 820 RFS

1 and the speed with which United States manufactur2 ers can respond to changing market opportunities.

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

4 science and technology to manufacturing is also vital

5 to the Nation’s prosperity, national and economic se6 curity, industrial production, engineering, and sci7 entific advancement.

8 ‘‘(5) The Department of Commerce’s Tech9 nology Administration, along with other Federal

10 agencies, can continue to play an important role in

11 assisting United States companies to develop, test,

12 and adopt modern and advanced manufacturing

13 technologies and in establishing high-performance

14 computing technology testbeds to develop, refine,

15 test, and transfer advanced manufacturing and

16 networking technologies and associated applications.

17 ‘‘(b) PURPOSE.—It is the purpose of this title to con18 tribute to the competitiveness of the United States by en19 hancing the Department of Commerce’s technology pro20 grams to—

21 ‘‘(1) provide United States manufacturers, es22 pecially small businesses, with ready access to high

23 quality advice and assistance in the development,

24 adoption, and improvement of modern manufactur-
12

•HR 820 RFS

1 ing processes and technology, and in solving their

2 specific technology-based problems; and

3 ‘‘(2) encourage, facilitate, and support the de4 velopment and adoption of advanced manufacturing

5 principles and technologies by United States manu6 facturers.

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

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

9 ‘‘(1) Federal agencies, particularly the Depart10 ment of Commerce, shall work with United States

11 manufacturers, labor, and the States to ensure that

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

13 development, adoption, and use of modern and ad14 vanced manufacturing technology;

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

16 with all the major Federal research and development

17 agencies to encourage the development and adoption,

18 by United States manufacturers, of advanced manu19 facturing technologies, and shall work closely with

20 United States manufacturers and labor, and with

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

22 technologies; and

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

24 high priority on the establishment and growth of a

25 National Technology Outreach Program to promote
13

•HR 820 RFS

1 and facilitate the development and use by United

2 States manufacturers of modern and advanced man3 ufacturing systems and applications for manufactur4 ing.

5 ‘‘(d) CONSTRUCTION.—Nothing in this title shall be

6 construed as modifying the duties and responsibilities of

7 the Department of Energy with regard to its technology

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

9 SEC. 203. ROLE OF THE DEPARTMENT OF COMMERCE.

10 Title III of the Stevenson-Wydler Technology Innova11 tion Act of 1980, as added by section 202 of this Act,

12 is further amended by adding at the end the following new

13 section:

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

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

16 the purposes and policies of section 301, the Department

17 of Commerce shall have primary responsibility in the Fed18 eral Government in working with United States manufac19 turers and labor and the States to develop advanced man20 ufacturing technologies and to promote and assist the

21 adoption and use of modern and advanced manufacturing

22 technologies, practices, and management techniques

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

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

25 Secretary and the Director, shall—
14

•HR 820 RFS

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

2 agencies, including the Department of Defense, the

3 Department of Energy, and the National Aero4 nautics and Space Administration to ensure consist5 ent and, where possible, coordinated efforts to pro6 mote the development and adoption of modern and

7 advanced manufacturing technologies;

8 ‘‘(2) assist the Office of Science and Tech9 nology Policy in its efforts to coordinate the manu10 facturing technology activities of the various Federal

11 agencies; and

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

13 State, and local agencies, manufacturing extension

14 programs, private industry, industry groups, worker

15 organizations, and academia to encourage and facili16 tate the use of both advanced manufacturing tech17 nologies, including those developed by the Advanced

18 Manufacturing Technology Development Program

19 established under section 304 of this Act, and mod20 ern manufacturing technologies and practices to

21 United States manufacturers.

22 The Secretary shall annually report to Congress on actions

23 taken under this subsection.
15

•HR 820 RFS

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

2 permitted by other law, other Federal agencies shall co3 operate with the Secretary in carrying out this title.’’.

4 SEC. 204. NATIONAL TECHNOLOGY OUTREACH PROGRAM.

5 Title III of the Stevenson-Wydler Technology Innova6 tion Act of 1980, as added by sections 202 and 203 of

7 this Act, is further amended by adding at the end the fol8 lowing new section:

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

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

11 hereby established a National Technology Outreach Pro12 gram (in this section referred to as the ‘Outreach Pro13 gram’), the purpose of which shall be to—

14 ‘‘(1) interconnect, programmatically and elec15 tronically, the Nation’s technology and manufactur16 ing extension centers, programs, and activities;

17 ‘‘(2) improve the competitiveness of United

18 States manufacturers and create jobs located in the

19 United States; and

20 ‘‘(3) assist United States manufacturers, espe21 cially small businesses, to expand and accelerate the

22 use of cost-effective modern manufacturing tech23 nologies and practices and to develop and adopt ad24 vanced manufacturing technologies. The Secretary,

25 acting through the Under Secretary and the Direc-
16

•HR 820 RFS

1 tor, shall implement and coordinate the Outreach

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

3 year plan for the Outreach Program, to be submit4 ted to the Congress under subsection (g).

5 ‘‘(b) PROGRAM COMPONENTS.—The Outreach Pro6 gram shall constitute a partnership between the Depart7 ment of Commerce, the States, the private sector, and,

8 as appropriate, shall include other Federal agencies to

9 provide a national system of manufacturing and tech10 nology extension centers and technical services to United

11 States manufacturers, particularly small businesses. The

12 Outreach Program shall include—

13 ‘‘(1) Manufacturing Outreach Centers estab14 lished under subsection (c);

15 ‘‘(2) Regional Centers for the Transfer of Man16 ufacturing Technology established under section 25

17 of the National Institute of Standards and Tech18 nology Act (15 U.S.C. 278k);

19 ‘‘(3) the State Technology Extension Program

20 established under section 26 of the National Insti21 tute of Standards and Technology Act (15 U.S.C.

22 278l);

23 ‘‘(4) the Outreach Program Information Net24 work and the Clearinghouse established under sub25 sections (d) and (e) of this section, respectively; and
17

•HR 820 RFS

1 ‘‘(5) other technology and manufacturing exten2 sion centers and activities supported by Federal,

3 State, or local agencies which could contribute to the

4 goals of this title and that the Secretary considers

5 appropriate for inclusion in the Outreach Program.

6 ‘‘(c) MANUFACTURING OUTREACH CENTERS.—(1)

7 Eligible government and private sector organizations that

8 are engaged in technology or manufacturing extension ac9 tivities may apply to the Secretary for designation as Man10 ufacturing Outreach Centers, in such form and manner

11 as the Secretary may prescribe. Eligible organizations in12 clude Federal, State, and local government agencies, ex13 tension programs, universities, and laboratories; small

14 business development centers; and professional societies,

15 worker organizations, industrial organizations, nonprofit

16 organizations, community development organizations,

17 community colleges, and technical schools and colleges.

18 ‘‘(2) The Secretary shall establish standards, consist19 ent with the requirements of subsection (f), for designa20 tion of existing technology or manufacturing extension

21 programs and for qualification of start-up programs as

22 Manufacturing Outreach Centers.

23 ‘‘(3) The Secretary may, through a competitive proc24 ess, make grants, subject to the availability of appropria25 tions, to Manufacturing Outreach Centers designated in
18

•HR 820 RFS

1 accordance with the standards established under para2 graph (2), to enable them to fulfill the purposes and per3 form the activities of the Outreach Program. If a State

4 plan for technology extension exists in a State where an

5 applicant for a grant under this paragraph is operating

6 or plans to operate, the proposer shall demonstrate in its

7 application that its proposal is compatible with such State

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

9 quality of the Outreach Program and to contribute to the

10 goal of ready availability of the services and information

11 provided through the Outreach Program, including infor12 mation on modern and advanced manufacturing tech13 nology, to all interested United States manufacturers.

14 Such grants shall be awarded to increase the capabilities

15 and capacity of Manufacturing Outreach Centers. Manu16 facturing Outreach Centers may not concurrently receive

17 financial assistance under section 25 of the National Insti18 tute of Standards and Technology Act and grants under

19 this paragraph. Grants may be awarded under this para20 graph for an initial period not to exceed 3 years and may

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

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

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

24 grant recipient.
19

•HR 820 RFS

1 ‘‘(4) In selecting applicants to participate in the Out2 reach Program and in making grants under paragraph

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

4 the applicant’s performance record and current capabili5 ties, and the potential usefulness of the applicant’s pro6 posal, from United States manufacturers that the Sec7 retary considers qualified to make such evaluations.

8 ‘‘(d) OUTREACH PROGRAM INFORMATION NET9 WORK.—(1) The Department of Commerce shall provide

10 for an instantaneous, interactive electronic communica11 tions network (in this section referred to as the ‘outreach

12 network’) to serve the Outreach Program, to facilitate ef13 fective and efficient interaction within it, and to permit

14 the collection and dissemination in electronic form, in a

15 timely and accurate manner, of information described in

16 subsection (e). The outreach network shall, wherever prac17 ticable, make use of existing public and private computer

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

19 design, configuration, acquisition plan, and operating poli20 cies, including user fees and appropriate electronic access

21 for public and private information suppliers and users, of

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

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

24 ‘‘(A) effective mechanisms for providing operat25 ing funds for the maintenance and use of the out-
20

•HR 820 RFS

1 reach network established under this paragraph, in2 cluding user fees, industry support, and continued

3 Federal investment;

4 ‘‘(B) the future operation and evolution of the

5 outreach network, including its relationship with

6 other public or private information services;

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

8 distributed over the outreach network; and

9 ‘‘(D) appropriate policies—

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

11 information that might be available on the out12 reach network and to protect the privacy of

13 users of the outreach network; and

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

15 outreach network and its information to mem16 ber organizations of the Outreach Program and

17 to United States companies, State and local

18 governments, United States universities and

19 colleges, and United States nonprofit organiza20 tions that the Secretary deems appropriate.

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

22 network established under paragraph (1) shall be designed

23 and configured in a manner that will enable interoper24 ability with networks and technologies developed under the

25 National High-Performance Computing Program de-
21

•HR 820 RFS

1 scribed in section 101 of the High-Performance Comput2 ing Act of 1991 (15 U.S.C. 5511). The Secretary shall

3 also, as appropriate, coordinate activities under this sub4 section with the relevant activities of other Federal agen5 cies, particularly the agile manufacturing/enterprise inte6 gration activities of the Department of Defense.

7 ‘‘(e) CLEARINGHOUSE.—(1) The Secretary shall de8 velop a clearinghouse system, using existing public and

9 private sector information providers and carriers where

10 appropriate, to—

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

12 appropriate to the purpose of the Outreach Program

13 stated in subsection (a), from all appropriate Fed14 eral sources, and where appropriate from other

15 sources, providing assistance where necessary in

16 making such information electronically available

17 through and compatible with the outreach network;

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

19 network, by United States companies, Federal agen20 cies, State and local governments, United States

21 universities and colleges, United States nonprofit or22 ganizations that the Secretary deems appropriate,

23 and member organizations of the Outreach Program,

24 to the most recent relevant available information and

25 expertise;
22

•HR 820 RFS

1 ‘‘(C) ensure that common standards of inter2 connection are utilized by the outreach network and

3 the clearinghouse to allow maximum interoperability

4 and usership; and

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

6 States manufacturers of the availability of such in7 formation.

8 ‘‘(2) The clearinghouse shall include information

9 available electronically on—

10 ‘‘(A) activities of Manufacturing Outreach Cen11 ters, Regional Centers for the Transfer of Manufac12 turing Technology, the State Technology Extension

13 Program, and the users of the outreach network;

14 ‘‘(B) domestic and international standards and

15 other export promotion information, including con16 formity assessment requirements and procedures;

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

18 and quality principles and standards;

19 ‘‘(D) manufacturing processes minimizing waste

20 and negative environmental impact;

21 ‘‘(E) federally funded technology development

22 and transfer programs;

23 ‘‘(F) how to access data bases and services; and
23

•HR 820 RFS

1 ‘‘(G) skills training, particularly the implemen2 tation and use of modern and advanced manufactur3 ing techniques.

4 ‘‘(3) The Secretary, acting through the Under Sec5 retary, may convene a national conference to develop rec6 ommendations for common standards for interconnection

7 and for improved dissemination to users of the clearing8 house of information on domestic and international tech9 nical regulations and standards, and on conformity assess10 ment procedures, including draft standards and regula11 tions. Invited participants are to include a broad cross sec12 tion of the standards, accreditation, and user commu13 nities.

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

15 this section, the Secretary shall satisfy the following re16 quirements:

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

18 network shall be established and operated through

19 cooperation and cofunding among Federal, State,

20 and local governments, other public and private con21 tributors, and end users that the Secretary deter22 mines are appropriate for providing maximum bene23 fit to United States manufacturers.

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

25 network shall utilize and leverage, to the extent
24

•HR 820 RFS

1 practicable, existing organizations, data bases, elec2 tronic networks, facilities, capabilities, and existing

3 standards for interconnection, and shall be designed

4 to complement rather than supplant State and local

5 programs.

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

7 network shall be subject to all applicable provisions

8 of law for the protection of trade secrets and busi9 ness confidential information.

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

11 the Outreach Program and information available

12 through the outreach network servicing the Outreach

13 Program shall be limited, as appropriate, to United

14 States companies, State and local governments,

15 United States universities and colleges, and United

16 States nonprofit organizations that the Secretary

17 deems appropriate.

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

19 the management structure and staffing of the Manu20 facturing Outreach Centers. The Outreach Program

21 shall strive for geographical balance with the ulti22 mate goal of access for all United States manufac23 turers.

24 ‘‘(6) Manufacturing Outreach Centers should

25 have the capability to deliver outreach services di-
25

•HR 820 RFS

1 rectly to United States manufacturers, actively work

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

3 the extent practicable, maximize the exposure of

4 United States manufacturers to demonstrations of

5 modern technologies in use, including flexible manu6 facturing practices.

7 ‘‘(7) The Department of Commerce shall de8 velop mechanisms for—

9 ‘‘(A) soliciting the perspectives of United

10 States manufacturers using the services of the

11 Manufacturing Outreach Centers and Regional

12 Centers for the Transfer of Manufacturing

13 Technology; and

14 ‘‘(B) evaluating the effectiveness of the

15 Manufacturing Outreach Centers and Regional

16 Centers for the Transfer of Manufacturing

17 Technology.

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

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

20 after consultation with the Under Secretary, the Director,

21 the Department of Commerce Technology Advisory Board,

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

23 potential participants in the Outreach Program, shall sub24 mit an initial plan for the implementation of this title to

25 Congress—
26

•HR 820 RFS

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

2 the responsibility to create, operate, and support the

3 Outreach Program and the outreach network, in4 cluding the interactive electronic linkage of Manu5 facturing Outreach Centers to the programs of the

6 Technology Administration and other appropriate

7 Federal, State, and local agencies;

8 ‘‘(B) establishing criteria and procedures, con9 sistent with the requirements of this title, for—

10 ‘‘(i) the selection of organizations to re11 ceive Department of Commerce services or fi12 nancial assistance as part of the Outreach Pro13 gram, including qualifications and training of

14 technology extension agents;

15 ‘‘(ii) access to services provided by partici16 pants in the Outreach Program and to informa17 tion available through the outreach network

18 servicing the Outreach Program; and

19 ‘‘(iii) the annual evaluation of the Out20 reach Program in achieving the purposes of this

21 title; and

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

23 a National Conference of States on Technology Ex24 tension, similar in structure to the National Con25 ference on Weights and Measures, and, if the Sec-
27

•HR 820 RFS

1 retary determines that such a Conference is advis2 able, developing, in consultation with the States and

3 other interested parties, a plan for the establish4 ment, operation, funding, and evaluation of such a

5 Conference.

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

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

8 Secretary, the Director, and the Department of Commerce

9 Technology Advisory Board, shall prepare and submit to

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

11 Program and the outreach network and clearinghouse es12 tablished under subsections (d) and (e), respectively. Such

13 5-year plan shall identify appropriate methods for expand14 ing the Outreach Program in a geographically balanced

15 manner. Such 5-year plan shall include a detailed imple16 mentation plan and cost estimates and shall take into con17 sideration and build on the report submitted under para18 graph (1). In the preparation of such 5-year plan, the Sec19 retary shall provide an opportunity for public comment,

20 and the plan submitted to Congress shall include a sum21 mary of comments received. Such plan may not be imple22 mented until 90 days after its submission to the Congress.

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

24 5-year plan under paragraph (2), the Secretary shall an-
28

•HR 820 RFS

1 nually report to the Congress, at the time of the Presi2 dent’s annual budget request to Congress, on—

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

4 of the Outreach Program described in subsection (a)

5 using criteria and procedures established under sub6 section (g)(1)(B)(iii);

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

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

9 ‘‘(D) any recommendations for legislative

10 changes necessary to enhance the Outreach Pro11 gram.

12 The report under this paragraph submitted at the end of

13 the fourth year of operation of the Outreach Program

14 shall include recommendations on whether to terminate

15 the Outreach Program or extend it for an additional pe16 riod not to exceed 5 years.’’.

17 SEC. 205. ADVANCED MANUFACTURING TECHNOLOGY DE18 VELOPMENT PROGRAM.

19 Title III of the Stevenson-Wydler Technology Innova20 tion Act of 1980, as added by sections 202, 203, and 204

21 of this Act, is further amended by adding at the end the

22 following new section:
29

•HR 820 RFS

1 ‘‘SEC. 304. ADVANCED MANUFACTURING TECHNOLOGY DE2 VELOPMENT PROGRAM.

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

4 Under Secretary and the Director, shall establish an Ad5 vanced Manufacturing Technology Development Program

6 which shall include projects to develop advanced manufac7 turing systems, networks, electronic data exchange, and

8 which shall be complementary with advanced manufactur9 ing technology development programs supported by other

10 Federal agencies.

11 ‘‘(b) PURPOSE.—The purpose of the Advanced Manu12 facturing Technology Development Program is to create

13 collaborative multiyear technology development programs

14 involving United States companies and, as appropriate, co15 operating with other Federal agencies and laboratories,

16 the States, worker organizations, universities and colleges,

17 independent research organizations, and other interested

18 persons, in order to develop, refine, test, and transfer de19 sign and manufacturing technologies and associated appli20 cations, including advanced computer integration and elec21 tronic networks for manufacturing information exchange.

22 ‘‘(c) PROGRAM COMPONENTS.—The Advanced Manu23 facturing Technology Development Program shall in24 clude—

25 ‘‘(1) the advanced manufacturing research and

26 development activities at the Institute; and
30

•HR 820 RFS

1 ‘‘(2) one or more technology development

2 testbeds within the United States, selected in ac3 cordance with procedures, including cost sharing, es4 tablished for the Advanced Technology Program es5 tablished under section 28 of the National Institute

6 of Standards and Technology Act (15 U.S.C. 278n),

7 whose purpose shall be to develop, refine, and test

8 advanced manufacturing, data exchange, and

9 networking technologies and associated applications

10 and to facilitate the transfer of such technologies

11 and applications to United States manufacturers.

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

13 Manufacturing Technology Development Program, under

14 the coordination of the Secretary, through the Director,

15 shall—

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

17 support the development of the equipment, computer

18 software, and systems integration necessary for the

19 successful operation within the United States of ad20 vanced design and manufacturing systems and asso21 ciated electronic networks;

22 ‘‘(2) establish at the Institute and the tech23 nology development testbed or testbeds—

24 ‘‘(A) prototype advanced computer-inte25 grated manufacturing systems;
31

•HR 820 RFS

1 ‘‘(B) prototype electronic networks linking

2 manufacturing systems; and

3 ‘‘(C) prototype clean manufacturing sys4 tems;

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

6 voluntary consensus standards relevant to advanced

7 computer-integrated manufacturing operations, in8 cluding standards for networks, electronic data

9 interchange, and digital product data specifications;

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

11 and networking technologies an integral part of de12 sign and production processes where appropriate;

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

14 technical barriers to the successful and cost-effective

15 operation of advanced manufacturing systems and

16 networks and to promote and facilitate electronic

17 data exchange;

18 ‘‘(6) facilitate the efforts of United States com19 panies to develop and test new applications for man20 ufacturing systems, networks, and information ex21 change;

22 ‘‘(7) involve in the Advanced Manufacturing

23 Technology Development Program, to the maximum

24 extent practicable, both those United States manu25 facturers which make manufacturing technology and
32

•HR 820 RFS

1 related computer equipment and software, and Unit2 ed States companies which buy such technology,

3 equipment and software;

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

5 managers, engineers, and employees of United

6 States manufacturers in the operation and applica7 tions of advanced manufacturing technologies and

8 networks, with particular emphasis on training for

9 production workers in the effective use of advanced

10 manufacturing technology;

11 ‘‘(9) work with United States companies, uni12 versities, independent research organizations, and

13 other interested parties to develop standards, tools,

14 and techniques for the use of advanced computer15 based training systems, including multi-media and

16 interactive learning technologies;

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

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

19 appropriate, between the technology development

20 testbeds and the outreach network created under

21 section 303(d); and

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

23 High-Performance Computing Program described in

24 section 101 of the High-Performance Computing Act
33

•HR 820 RFS

1 of 1991 (15 U.S.C. 5511) to ensure that both pro2 grams are complementary and compatible.

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

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

5 the Secretary shall give preferential consideration to appli6 cants that have existing computer expertise in manufac7 turing applications and the ability to diffuse such expertise

8 to United States companies, and that, in the case of joint

9 research and development ventures, include both suppliers

10 and users of advanced manufacturing technology. In the

11 case of systems described in subsection (d)(2)(C), the Sec12 retary shall also give preferential consideration to appli13 cants that have existing program expertise in clean manu14 facturing, including the areas of concurrent engineering,

15 materials research, and environmental science, and which

16 have a technology transfer mechanism in place to transfer

17 testbed results of a clean manufacturing program to in18 dustry participants.

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

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

21 this section may include one or more State research orga22 nizations, universities, Federal laboratories, independent

23 research organizations, or Regional Centers for the Trans24 fer of Manufacturing Technology (as created under section

25 25 of the National Institute of Standards and Technology
34

•HR 820 RFS

1 Act) and other organizations as the Secretary considers

2 appropriate.

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

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

5 request for proposals is issued, the Secretary shall hold

6 one or more workshops to solicit advice from United

7 States companies and from other Federal agencies, par8 ticularly the Department of Defense, the Department of

9 Energy, and the National Aeronautics and Space Adminis10 tration, regarding the specific missions and activities of

11 the testbeds.

12 ‘‘(2) The Secretary shall, to the greatest extent pos13 sible, coordinate activities under this section with activities

14 of other Federal agencies and initiatives relating to com15 puter-aided acquisition and logistics support, electronic

16 data interchange, flexible computer-integrated manufac17 turing, and enterprise integration.

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

19 facilities, equipment, or personnel from other Federal

20 agencies in order to carry out this section.

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

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

23 operation of the antitrust laws. For purposes of this sub24 section, the term ‘antitrust laws’ has the meaning given

25 it in subsection (a) of the first section of the Clayton Act
35

•HR 820 RFS

1 (15 U.S.C. 12(a)), except that such term includes the Act

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

3 commonly known as the Robinson Patman Act, and sec4 tion 5 of the Federal Trade Commission Act (15 U.S.C.

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

6 methods of competition.’’.

7 SEC. 206. MISCELLANEOUS AND CONFORMING AMEND8 MENTS.

9 (a) DEFINITIONS.—Section 4 of the Stevenson10 Wydler Technology Innovation Act of 1980 (15 U.S.C.

11 3703) is amended by adding at the end the following new

12 paragraphs:

13 ‘‘(14) ‘Director’ means the Director of the Na14 tional Institute of Standards and Technology.

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

16 of Standards and Technology.

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

18 Secretary of Commerce for Technology Policy.

19 ‘‘(17) ‘Advanced manufacturing technology’

20 means—

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

22 robots, automated process control equipment,

23 computerized flexible manufacturing systems,

24 associated computer software, and other tech25 nology for improving manufacturing and indus-
36

•HR 820 RFS

1 trial production of goods, including bio2 technology products, which advance the state3 of-the-art; or

4 ‘‘(B) novel manufacturing techniques and

5 processes not previously generally available that

6 improve manufacturing quality, productivity,

7 and practices, including engineering design,

8 quality assurance, concurrent engineering, con9 tinuous process production technology, inven10 tory management, upgraded worker skills, com11 munications with customers and suppliers, and

12 promotion of sustainable economic growth.

13 ‘‘(18) ‘Modern technology’ means the best avail14 able proven technology, techniques, and processes

15 appropriate to enhancing the productivity of manu16 facturers or to promoting sustainable economic

17 growth.

18 ‘‘(19) ‘Sustainable economic growth’ means eco19 nomic growth that enhances the national quality of

20 life and preserves environmental integrity.

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

22 an entity which the Secretary finds, based on a dem23 onstration by such entity—

24 ‘‘(A) maintains substantial employment in

25 the United States;
37

•HR 820 RFS

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

2 arising from assistance provided under this Act

3 or the National Competitiveness Act of 1993, to

4 promote the manufacture within the United

5 States of products resulting from that tech6 nology;

7 ‘‘(C) agrees to procure parts and materials

8 for such products from competitive United

9 States suppliers; and

10 ‘‘(D) either—

11 ‘‘(i) is a United States-owned com12 pany; or

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

14 United States that has a parent company

15 incorporated in a country which the Sec16 retary finds—

17 ‘‘(I) affords to United States18 owned companies opportunities com19 parable to those afforded to any other

20 company to participate in programs

21 and to have access to resources and

22 information equivalent to the opportu23 nities authorized under this Act or the

24 National Competitiveness Act of 1993
38

•HR 820 RFS

1 to foreign-owned entities engaged in

2 commerce in the United States;

3 ‘‘(II) has a standards develop4 ment and conformity assessment proc5 ess that is open and transparent, and

6 that results in standards that are fair

7 and reasonable and do not discrimi8 nate against United States products

9 and production processes;

10 ‘‘(III) affords to United States11 owned companies local investment op12 portunities comparable to those af13 forded any other company; and

14 ‘‘(IV) affords adequate and effec15 tive protection for the intellectual

16 property rights of United States17 owned companies.

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

19 means a United States company which the Secretary

20 finds, based on a demonstration by such company,

21 makes substantial investments in the United States

22 in research, development, and manufacturing (in23 cluding the manufacture of major components or

24 subassemblies in the United States).
39

•HR 820 RFS

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

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

3 of the National Institute of Standards and Tech4 nology Act (15 U.S.C. 278n(j)(2).

5 ‘‘(23) ‘Benchmarking’ means the assessment of

6 foreign science and technology capabilities relative to

7 comparable United States capabilities.

8 ‘‘(24) ‘Independent research organizations’

9 means nonprofit organizations organized primarily

10 for the purpose of conducting or managing research

11 activities.’’.

12 (b) REDESIGNATIONS.—The Stevenson-Wydler Tech13 nology Innovation Act of 1980 (15 U.S.C. 3701 et seq.)

14 is amended—

15 (1) by inserting immediately after section 4 the

16 following new title heading:

17 ‘‘TITLE I—DEPARTMENT OF

18 COMMERCE AND RELATED

19 PROGRAMS’’;

20 (2) by redesignating sections 5 through 10 as

21 sections 101 through 106, respectively;

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

23 sections 107 through 113, respectively;
40

•HR 820 RFS

1 (4) by inserting immediately after section 113

2 (as redesignated by paragraph (3) of this sub3 section) the following new title heading:

4 ‘‘TITLE II—FEDERAL

5 TECHNOLOGY TRANSFER’’;

6 (5) by redesignating sections 11 through 15 as

7 sections 201 through 205, respectively;

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

9 (7) in section 4—

10 (A) by striking ‘‘section 5’’ each place it

11 appears and inserting in lieu thereof ‘‘section

12 101’’;

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

14 ‘‘section 6’’ and ‘‘section 8’’ each place they ap15 pear and inserting in lieu thereof ‘‘section 102’’

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

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

18 6’’ and inserting in lieu thereof ‘‘section 102’’;

19 (8) in section 105 (as redesignated by para20 graph (2) of this subsection) by striking ‘‘section 6’’

21 each place it appears and inserting in lieu thereof

22 ‘‘section 102’’;

23 (9) in section 106(d) (as redesignated by para24 graph (2) of this subsection) by striking ‘‘7, 9, 11,
41

•HR 820 RFS

1 15, 17, or 20’’ and inserting in lieu thereof ‘‘103,

2 105, 108, 111, 201, or 205’’;

3 (10) in section 201(i) (as redesignated by para4 graph (5) of this subsection) by inserting ‘‘loan,

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

6 taken under this subsection shall not be subject to

7 Federal requirements on the disposal of property.’’

8 after ‘‘activities.’’;

9 (11) in section 202(b) (as redesignated by para10 graph (5) of this subsection) by striking ‘‘section

11 14’’ and inserting in lieu thereof ‘‘section 204’’;

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

13 paragraph (5) of this subsection) by striking ‘‘sec14 tion 12’’ and inserting in lieu thereof ‘‘section 202’’;

15 (13) in section 113 (as redesignated by para16 graph (3) of this subsection) by striking ‘‘sections

17 11, 12, and 13’’ and inserting in lieu thereof ‘‘sec18 tions 201, 202, and 203’’;

19 (14) in section 206 (as redesignated by para20 graph (6) of this subsection)—

21 (A) by striking ‘‘section 11(b)’’ in sub22 section (a)(2) and inserting in lieu thereof ‘‘sec23 tion 201(b)’’; and
42

•HR 820 RFS

1 (B) by striking ‘‘section 6(d)’’ in sub2 section (b) and inserting in lieu thereof ‘‘section

3 102(d)’’; and

4 (15) by adding at the end of section 201 (as re5 designated by paragraph (5) of this subsection) the

6 following new subsection:

7 ‘‘(j) ADDITIONAL TECHNOLOGY TRANSFER MECHA8 NISMS.—In addition to the technology transfer mecha9 nisms set forth in this section and section 202 of this Act,

10 the heads of Federal departments and agencies also may

11 transfer technologies through the technology transfer and

12 extension programs of the Department of Commerce and

13 the Department of Defense.’’.

14 SEC. 207. MANUFACTURING TECHNOLOGY CENTERS.

15 Section 25 of the National Institute of Standards and

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

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

18 follows: ‘‘MANUFACTURING TECHNOLOGY CENTERS’’;

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

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

21 a Center’’ and inserting in lieu thereof ‘‘to a maxi22 mum of one-third Federal funding. Each Center

23 which receives financial assistance under this section

24 shall be evaluated during its sixth year of operation,

25 and at such subsequent times as the Secretary con-
43

•HR 820 RFS

1 siders appropriate, by an evaluation panel appointed

2 by the Secretary in the same manner as was the

3 evaluation panel previously appointed. The Secretary

4 shall not provide funding for additional years of the

5 Center’s operation unless the evaluation is positive

6 and the Secretary finds that continuation of funding

7 furthers the goals of the Department. Such addi8 tional Federal funding shall not exceed one-third of

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

10 (3) by striking subsection (d); and

11 (4) by adding at the end the following new sub12 sections:

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

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

15 after that evaluation, contract with the Center to provide

16 additional technology extension or transfer services above

17 and beyond the baseline activities of the Center. Such ad18 ditional services may include, but are not limited to, the

19 development and operation of the following:

20 ‘‘(1) Programs to assist United States compa21 nies that are engaged in manufacturing and their

22 employees, including front-line production workers,

23 in the Center’s region to learn and apply the tech24 nologies, techniques, and processes associated with
44

•HR 820 RFS

1 systems management technology, electronic data ex2 change, or improving manufacturing productivity.

3 ‘‘(2) Services focused on the testing, develop4 ment, and application of manufacturing and process

5 technologies within specific technical fields such as

6 advanced materials or electronics fabrication for the

7 purpose of assisting United States companies that

8 are engaged in manufacturing, both within the Cen9 ter’s original service region and in other regions, to

10 improve manufacturing quality, product design,

11 workforce training, and production efficiency in

12 those specific technical fields.

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

14 involve United States manufacturing technology con15 sortia to provide ongoing research, technology trans16 fer, and worker training assistance to their mem17 bers. An award under this paragraph shall be for no

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

19 to renewal after a 1-year demonstration period.

20 ‘‘(e) In addition to any assistance provided or con21 tracts entered into with a Center under this section, the

22 Director is authorized to make separate and smaller

23 awards, through a competitive process, to nonprofit orga24 nizations which wish to work with a Center. Such awards

25 shall be for the purpose of enabling those organizations
45

•HR 820 RFS

1 to provide outreach services, in collaboration with the Cen2 ter, to United States manufacturers located in parts of

3 the region served by the Center which are not easily acces4 sible to the Center and which are not served by any other

5 manufacturing outreach center. Organizations which re6 ceive such awards shall be known as Local Manufacturing

7 Offices. In reviewing applications, the Director shall con8 sider the needs of rural as well as urban manufacturers.

9 No single award for a Local Manufacturing Office shall

10 be for more than three years, awards shall be renewable

11 through the competitive awards process, and no award

12 shall be made unless the applicant provides matching

13 funds at least equal to the amount received under this sec14 tion.

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

16 coordinate his efforts with the plans for the National

17 Technology Outreach Program established under section

18 303 of the Stevenson-Wydler Technology Innovation Act

19 of 1980.’’.

20 SEC. 208. STATE TECHNOLOGY EXTENSION PROGRAM.

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

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

23 278l(a)), is amended—

24 (1) by inserting immediately after ‘‘(a)’’ the fol25 lowing new sentence: ‘‘There is established within
46

•HR 820 RFS

1 the Institute a State Technology Extension Pro2 gram.’’; and

3 (2) by inserting ‘‘through that Program’’ imme4 diately after ‘‘technical assistance’’.

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

6 National Institute of Standards and Technology Act (15

7 U.S.C. 278l) is amended by adding at the end the follow8 ing new subsection:

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

10 subsection (b) of this section, the State Technology Exten11 sion Program also may, through merit-based competitive

12 review processes—

13 ‘‘(1) make awards to States and conduct work14 shops, pursuant to section 5121(b) of the Omnibus

15 Trade and Competitiveness Act of 1988, in order to

16 help States improve their planning and coordination

17 of technology extension activities;

18 ‘‘(2) support technology demonstration projects

19 to help States provide technical assistance and serv20 ices to United States manufacturers that will im21 prove their productivity and competitiveness;

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

23 innovative ways to help United States manufacturers

24 improve their technical capabilities;
47

•HR 820 RFS

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

2 United States manufacturers in rural as well as

3 urban areas adopt modern manufacturing tech4 nologies;

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

6 United States manufacturers in the defense industry

7 to adapt to modern or advanced manufacturing tech8 nologies as they convert to nondefense or dual-use

9 purposes;

10 ‘‘(6) support worker technology education pro11 grams in the States at institutions such as research

12 universities, community colleges, labor education

13 centers, labor-management committees, and worker

14 organizations in production technologies critical to

15 the Nation’s future, with an emphasis on high-per16 formance work systems, the skills necessary to use

17 modern or advanced manufacturing systems well;

18 ‘‘(7) help States develop programs to train per19 sonnel who in turn can provide technical skills to

20 managers and workers of United States manufactur21 ers; and

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

23 States manufacturers to develop on-the-job training

24 in modern and advanced manufacturing tech25 nologies, techniques, and processes and to promote
48

•HR 820 RFS

1 the development and adoption of modern and ad2 vanced manufacturing technologies.’’.

3 Subtitle B—National Science Foun4 dation Manufacturing Programs

5 SEC. 211. ROLE OF THE NATIONAL SCIENCE FOUNDATION

6 IN MANUFACTURING.

7 The Director of the National Science Foundation,

8 after appropriate consultation with the Secretary, the

9 Under Secretary, and the Director, shall—

10 (1) work with United States companies to iden11 tify areas of research in advanced manufacturing

12 technologies and practices that offer the potential to

13 improve United States productivity, competitiveness,

14 employment, and sustainable economic growth;

15 (2) support research at United States univer16 sities to improve advanced manufacturing tech17 nologies and practices; and

18 (3) work with the Technology Administration

19 and the Institute and, as appropriate, other Federal

20 agencies to accelerate the transfer to United States

21 companies of manufacturing research and innova22 tions developed at universities.
49

•HR 820 RFS

1 SEC. 212. ENGINEERING AND COOPERATIVE RESEARCH

2 CENTERS.

3 The Director of the National Science Foundation

4 shall strengthen and expand the number of Engineering

5 Research Centers and strengthen and expand the Indus6 try/University Cooperative Research Centers Program

7 with the goal of increasing the engineering talent base

8 versed in critical technologies, with emphasis on advanced

9 manufacturing technology and practices, and of advancing

10 fundamental engineering knowledge in these technologies,

11 including biotechnology. At least one Engineering Re12 search Center shall have a research and education focus

13 on the concerns of United States manufacturers, including

14 small businesses that are trying to modernize their oper15 ations. Awards under this section shall be made on a com16 petitive, merit review basis and on terms and conditions

17 the Director may prescribe to ensure that the purposes

18 for which the award is made are satisfied. Such awards

19 may include support for acquisition of instrumentation,

20 equipment, and facilities related to the research and edu21 cation activities of the Centers and support for under22 graduate students to participate in the activities of the

23 Centers.
50

•HR 820 RFS

1 SEC. 213. MANUFACTURING TRAINEESHIPS AND FELLOW2 SHIPS.

3 (a) GRADUATE TRAINEESHIPS.—The Director of the

4 National Science Foundation, in consultation with the

5 Secretary, may establish a program to provide traineeships

6 to graduate students at institutions of higher education

7 within the United States who are citizens of the United

8 States and who choose to pursue masters or doctoral de9 grees in manufacturing engineering. The Director of the

10 National Science Foundation shall make an effort to en11 sure the provision of traineeships under this subsection to

12 socially and economically disadvantaged individuals (with13 in the meaning of section 8(a) (5) and (6) of the Small

14 Business Act, and including women).

15 (b) MANUFACTURING MANAGERS IN THE CLASS16 ROOM PROGRAM.—The Director of the National Science

17 Foundation, in consultation with the Secretary, may es18 tablish a program to provide fellowships, on a cost-shared

19 basis, to employees of United States companies with expe20 rience in manufacturing to serve for 1 or 2 years as in21 structors in manufacturing at 2-year community and tech22 nical colleges in the United States.

23 SEC. 214. TOTAL QUALITY MANAGEMENT.

24 The Director of the National Science Foundation, in

25 consultation with the Secretary, the Under Secretary, and

26 the Director, may establish a program to develop innova-
51

•HR 820 RFS

1 tive curricula, courses, and materials for use by institu2 tions of higher education for instruction in total quality

3 management and related management practices, in

4 order to help improve the productivity of United States

5 companies.

6 TITLE III—CRITICAL

7 TECHNOLOGIES

8 Subtitle A—Benchmarking Science

9 and Technology

10 SEC. 301. BENCHMARKING UNITED STATES SCIENCE AND

11 TECHNOLOGY AGAINST FOREIGN CAPABILI12 TIES.

13 The Stevenson-Wydler Technology Innovation Act of

14 1980, as amended by this Act, is further amended by add15 ing at the end the following new title:

16 ‘‘TITLE IV—BENCHMARKING

17 SCIENCE AND TECHNOLOGY

18 ‘‘SEC. 401. FINDINGS AND PURPOSES.

19 ‘‘(a) FINDINGS.—As other countries have gained

20 strength in new technologies and as centers of technical

21 excellence have developed around the world, it has become

22 increasingly important for United States companies and

23 research organizations to understand their scientific and

24 technological capabilities relative to those of other global

25 competitors.
52

•HR 820 RFS

1 ‘‘(b) PURPOSES.—The purposes of this title are to

2 conduct and coordinate the collection, evaluation, and dis3 semination, to United States companies, State and local

4 governments, and nonprofit organizations, of information

5 on foreign science and technology, specifically information

6 assessing foreign capabilities relative to comparable Unit7 ed States capabilities.

8 ‘‘SEC. 402. PROGRAM RESPONSIBILITIES.

9 ‘‘(a) DEPARTMENT OF COMMERCE.—The Depart10 ment of Commerce shall be the lead agency of the Federal

11 Government in making available information for assessing

12 the comparative strength of United States scientific and

13 technological capabilities. The Secretary, acting through

14 the Under Secretary, shall—

15 ‘‘(1) collect within the Federal Government and

16 disseminate to United States companies, State and

17 local governments, and nonprofit organizations infor18 mation regarding foreign process and product re19 search and technologies of importance to United

20 States companies and the Federal Government, and

21 regarding related technology assessment activities al22 ready underway in the Federal Government;

23 ‘‘(2) provide such information and analyses in

24 electronic form, and ensure, consistent with con25 fidentiality and security considerations, that they
53

•HR 820 RFS

1 will be available through the clearinghouse to the

2 outreach network created under section 303 of this

3 Act;

4 ‘‘(3) work, in coordination with the Federal Co5 ordinating Council for Science, Engineering, and

6 Technology, as appropriate, to streamline Federal

7 Government procedures for collecting, evaluating,

8 and disseminating information analyzing foreign sci9 entific and technological information; and

10 ‘‘(4) conduct appropriate planning for more

11 comprehensive collection, evaluation, dissemination,

12 and application of foreign science and technology in13 formation.

14 ‘‘(b) OTHER AGENCIES.—All executive departments

15 and agencies shall assist the Secretary in carrying out this

16 title.

17 ‘‘(c) ADDITIONAL AUTHORITIES.—The Secretary,

18 acting through the Under Secretary, is authorized to—

19 ‘‘(1) arrange for access to information collected

20 and developed under this title, in electronic form or

21 otherwise, by authorized and interested parties, in22 cluding charging and retaining fees for expenditure,

23 subject to appropriations;

24 ‘‘(2) provide for the collection of additional in25 formation to fulfill the purposes of this title;
54

•HR 820 RFS

1 ‘‘(3) provide for analysis of foreign research

2 and development activities and technological capa3 bilities, particularly in those areas where the United

4 States is considered to be at par or lagging foreign

5 capabilities or where foreign capabilities are pro6 jected to overtake those of the United States;

7 ‘‘(4) enter into joint ventures authorized under

8 section 212(a)(1)(A) of Public Law 100–519 (15

9 U.S.C. 3704b(a)(1)(a)) in carrying out this title;

10 ‘‘(5) consult with users of such information, as

11 appropriate, on the usefulness of available foreign

12 scientific and technological information and on the

13 need for additional information and assessment ac14 tivities and consult with other affected agencies of

15 the Federal Government to promote consistent and

16 useful collection, assessment, and analysis of foreign

17 technological information; and

18 ‘‘(6) establish and administer the fellowship

19 program described in subsection (d).

20 ‘‘(d) FELLOWSHIP PROGRAM.—(1) The Secretary,

21 acting through the Under Secretary, shall establish and

22 administer a fellowship program to support Technology

23 Fellows to assist the Under Secretary in carrying out ac24 tivities under this title relating to those countries that are

25 major competitors of the United States in critical tech-
55

•HR 820 RFS

1 nologies, and to identify opportunities for technology

2 transfer to the United States or technological collabora3 tion for United States industries.

4 ‘‘(2) Technology Fellows shall—

5 ‘‘(A) regularly report to the Department of

6 Commerce on work planned, in progress, and accom7 plished; and

8 ‘‘(B) provide support to the Department of

9 Commerce as requested by that Department.

10 ‘‘(3) Fellowships awarded under the program estab11 lished under this subsection shall—

12 ‘‘(A) be awarded for a period of 2 years;

13 ‘‘(B) be reasonable and appropriate; and

14 ‘‘(C) include provisions for living and office ar15 rangements in the host country.

16 ‘‘(4) Only individuals who—

17 ‘‘(A) have at least a bachelors degree in engi18 neering or science; and

19 ‘‘(B) have at least 5 years of work experience

20 in manufacturing or technology development,

21 shall be eligible for a fellowship under this program.’’.
56

•HR 820 RFS

1 Subtitle B—Advanced Technology

2 Program

3 SEC. 321. DEVELOPMENT OF PROGRAM PLAN.

4 The Secretary, acting through the Under Secretary

5 and the Director, shall, within 6 months after the date

6 of enactment of this Act, submit to the Congress a plan

7 for the expansion of the Advanced Technology Program

8 established under section 28 of the National Institute of

9 Standards and Technology Act (15 U.S.C. 278n), with

10 specific consideration given to—

11 (1) closer coordination and cooperation with the

12 Advanced Research Projects Agency and other Fed13 eral research and development agencies, including

14 joint funding of large scale consortia, as appropriate;

15 (2) broadening of the scope of the program to

16 include and focus on as many critical technologies

17 identified pursuant to section 603(d) of the National

18 Science and Technology Policy, Organization, and

19 Priorities Act of 1976 (42 U.S.C. 6683(d)) as is ap20 propriate; and

21 (3) changes that may be needed when annual

22 funds available for awards and cooperative agree23 ments under the Program reach levels of

24 $200,000,000 and $500,000,000.
57

•HR 820 RFS

1 SEC. 322. LARGE SCALE RESEARCH AND DEVELOPMENT

2 CONSORTIA.

3 (a) ESTABLISHMENT OF PROGRAM.—The Secretary,

4 acting through the Director, may establish a program for

5 the support of large-scale research and development

6 consortia.

7 (b) SELECTION PROCEDURES AND REQUIRE8 MENTS.—

9 (1) GENERAL RULE.—Except as provided in

10 paragraph (2), the selection and making of awards

11 to large-scale research and development consortia

12 under this section shall be carried out in accordance

13 with procedures and requirements applicable to joint

14 ventures described in section 28(b)(1) of the Na15 tional Institute of Standards and Technology Act

16 (15 U.S.C. 278n(b)(1)).

17 (2) EXCEPTION.—Notwithstanding section

18 28(b)(1)(B)(ii) of the National Institute of Stand19 ards and Technology Act (15 U.S.C.

20 278n(b)(1)(B)(ii)), for purposes of awards made

21 under this section, a minority share of the cost of

22 large-scale research and development consortia may

23 be provided by the Federal Government for up to 7

24 years.

25 (c) PROJECT SELECTION.—Preference shall be given

26 for selection under this section to large-scale research and
58

•HR 820 RFS

1 development consortia that would not be undertaken by

2 the private sector without a Federal investment of

3 $30,000,000 or more per year.

4 (d) SELECTION CRITERIA.—In selecting large-scale

5 research and development consortia under this section, the

6 Secretary, acting through the Director, shall give priority

7 to consortia that best achieve the following goals:

8 (1) Significant contribution to broad economic

9 growth.

10 (2) Significant contribution to the national

11 quality of life.

12 (3) Significant contribution to environmental

13 sustainability.

14 (4) Promotion of private sector partnership

15 with Federal research and development activities.

16 (5) Substantial improvement of the inter17 national competitiveness of United States companies.

18 (6) Involvement of several competitor firms in

19 the development of the key consortia technologies.

20 (7) Strengthening of the linkages between do21 mestic suppliers, systems developers, and end-users.

22 (8) Participation by domestic end-users from

23 several industrial sectors.

24 (9) Promotion of the diffusion of

25 nonproprietary information to United States compa-
59

•HR 820 RFS

1 nies through strong links with organizations such as

2 trade and professional groups.

3 (e) INDEPENDENT TECHNICAL REVIEW.—The Sec4 retary, through the Director, shall provide for technical

5 review at least once every three years of large-scale re6 search and development consortia receiving support under

7 this section, by the National Institute of Standards and

8 Technology, other national laboratories, the Department

9 of Commerce Technology Advisory Board established

10 under section 401 of this Act, or independent research or11 ganizations that are not a participant in the large-scale

12 research and development consortium being reviewed.

13 Such review shall be for the purpose of determining

14 progress toward the objectives for which such large-scale

15 research and development consortium was formed, with

16 recommendations for improvement, funding adjustments,

17 or termination of Federal support. The Secretary, through

18 the Director, shall transmit to the Committee on Science,

19 Space, and Technology of the House of Representatives

20 and the Committee on Commerce, Science, and Transpor21 tation of the Senate an annual status report summarizing

22 significant accomplishments in achieving those objectives.

23 (f) STUDY.—The Secretary, through the Director,

24 shall undertake a study to determine the best way to maxi25 mize the benefit of large-scale research and development
60

•HR 820 RFS

1 consortia to industry as a whole in carrying out this sec2 tion. The results of such study shall be submitted to the

3 Congress within 6 months after the date of the enactment

4 of this Act. Such report shall include criteria and proce5 dures for the evaluation by the Director of the progress

6 of consortia funded under this section.

7 (g) TERMINATION.—The Secretary shall establish

8 criteria and procedures for terminating Federal funding

9 of a consortium under this section if the Secretary deter10 mines that such consortium is not making acceptable

11 progress toward achieving its goals. No consortium shall

12 receive funding under this section for more than 7 years.

13 (h) DEFINITION.—For purposes of this section, the

14 term ‘‘large-scale research and development consortia’’

15 means a joint venture described in section 28(b)(1) of the

16 National Institute of Standards and Technology Act (15

17 U.S.C. 278n(b)(1)).

18 SEC. 323. TECHNICAL AMENDMENTS.

19 Section 28 of the National Institute of Standards and

20 Technology Act (15 U.S.C. 278n) is amended—

21 (1) by adding at the end the following new sub22 section:

23 ‘‘(k) Notwithstanding subsections (b)(1)(B)(ii) and

24 (d)(3), the Director may grant an extension of not to ex25 ceed 6 months beyond the deadlines established under
61

•HR 820 RFS

1 those subsections for joint venture and single applicant

2 awardees to expend Federal funds to complete their

3 projects, if such extension may be granted with no addi4 tional cost to the Federal Government.’’;

5 (2) in subsection (b)(2), by inserting ‘‘, and

6 with independent research organizations’’ after ‘‘es7 pecially small businesses’’; and

8 (3) in subsection (j)—

9 (A) by redesignating paragraphs (1) and

10 (2) as paragraphs (2) and (3), respectively; and

11 (B) by inserting before paragraph (2), as

12 so redesignated, the following new paragraph:

13 ‘‘(1) the term ‘independent research organiza14 tions’ means nonprofit organizations organized pri15 marily for the purpose of conducting or managing

16 research activities;’’.

17 SEC. 324. COUNTRY QUALIFICATION NOTICE.

18 Section 28 of the National Institute of Standards and

19 Technology Act (15 U.S.C. 278n) is amended by adding

20 at the end thereof the following new subsection:

21 ‘‘(l) The Secretary shall provide prospective appli22 cants for assistance under this section with guidance as

23 to their eligibility under subsection (d)(9)(B)(ii). No such

24 applicant shall be required to provide evidence that a
62

•HR 820 RFS

1 country is a country described in such subsection

2 (d)(9)(B)(ii).’’.

3 SEC. 325. RECOUPMENT.

4 Section 28 of the National Institute of Standards and

5 Technology Act (15 U.S.C. 278n) is amended by adding

6 the following new subsection:

7 ‘‘(l)(1) Not later than 180 days after the date of en8 actment of this subsection, the Secretary shall establish

9 procedures and criteria for recoupment in connection with

10 any project, for which a grant, contract, or cooperative

11 agreement is made under this section, which has led to

12 the development of a product or process which is marketed

13 or used.

14 ‘‘(2)(A) Except as provided in subparagraph (B),

15 such recoupment shall be required as a condition for

16 award and be proportional to the Federal share of the

17 costs of such project, and shall be derived from the pro18 ceeds of royalties or licensing fees received in connection

19 with such product or process.

20 ‘‘(B) In the case where a product or process is used

21 by the recipient of the financial assistance under this sec22 tion for the production and sale of its own products or

23 processes, the recoupment shall consist of a payment

24 equivalent to the payment which would be made under

25 subparagraph (A).
63

•HR 820 RFS

1 ‘‘(3) The Secretary may at any time waive or defer

2 all or some of the recoupment requirements of this sub3 section as necessary, depending on—

4 ‘‘(A) the commercial competitiveness of the en5 tity or entities developing or using the product or

6 process;

7 ‘‘(B) the profitability of the project; and

8 ‘‘(C) the commercial viability of the product or

9 process utilized.’’.

10 Subtitle C—Civilian Technology

11 Loan Program

12 SEC. 331. LOAN AND LOAN GUARANTEE AUTHORITY.

13 To the extent provided in appropriation Acts, the

14 Secretary, acting through the Under Secretary, may make,

15 or enter into agreements to make, loans and loan guaran16 tees, either directly or in cooperation with other lenders,

17 to small and medium-sized qualified business concerns in

18 accordance with this subtitle.

19 SEC. 332. OPERATING PLAN AND EFFECTIVE DATE.

20 (a) OPERATING PLAN.—The Secretary, acting

21 through the Under Secretary, shall prepare (in consulta22 tion with the Advisory Committee established under sec23 tion 344, other appropriate executive agencies, the States,

24 United States companies, the financial community, and

25 other appropriate parties) and submit to the Congress on
64

•HR 820 RFS

1 or before November 1, 1993, an operating plan to carry

2 out this subtitle. In preparing such plan, the Secretary

3 shall consider and evaluate alternative approaches to

4 achieving the purposes of this subtitle and shall develop

5 recommendations, as appropriate, to fulfill the purposes

6 of this subtitle in the most effective and efficient manner

7 achievable. Such evaluations and recommendations shall

8 be included in the plan submitted under this subsection.

9 (b) EFFECTIVE DATE.—Except as provided in sub10 section (a), the provisions of this subtitle shall take effect

11 on October 1, 1994.

12 SEC. 333. TERMS AND CONDITIONS.

13 Loans and loan guarantees made under section 331

14 shall be in such form and manner and under such terms

15 and conditions as the Under Secretary may prescribe by

16 regulation, and shall be subject to the following terms and

17 conditions:

18 (1) Loans awarded or guaranteed shall be for

19 sound financing of research, development, dem20 onstration, or utilization of critical technologies or

21 advanced technologies.

22 (2) Loans shall only be awarded or guaranteed

23 if the Under Secretary finds that—
65

•HR 820 RFS

1 (A) sufficient collateral, which may include

2 both tangible and intangible assets, is pledged;

3 or

4 (B) the borrower is sufficiently financially

5 sound,

6 to reasonably ensure repayment.

7 (3) Loans awarded or guaranteed may not ex8 ceed 50 percent of total eligible project costs. For

9 purposes of this section, the term ‘‘eligible project

10 costs’’ shall be defined by the Under Secretary by

11 regulation.

12 (4) The total principal amount of outstanding

13 loans awarded or guaranteed to a single borrower

14 may not exceed $2,000,000 at any time.

15 (5) Loans awarded or guaranteed shall be sen16 ior to any other debt obligations of the borrower, ex17 cept to the extent that the Under Secretary consid18 ers necessary to accommodate the borrower’s ability

19 to raise sufficient debt or equity capital from non20 Federal sources to pay the balance of eligible project

21 costs that are not covered by such loans.

22 (6) Interest on a loan, or portion of a loan,

23 awarded or guaranteed by the Federal Government

24 under this subtitle shall be at a rate determined by

25 the Secretary of the Treasury, at the time such loan
66

•HR 820 RFS

1 is made, to equal the then current average market

2 yield on outstanding debt obligations of the United

3 States with remaining periods to maturity com4 parable to the maturity of such loan, plus an addi5 tional charge of up to 1 percent applied by the

6 Under Secretary to cover expected defaults and rea7 sonable administrative costs of carrying out this sub8 title. For purposes of this section, the term ‘‘de9 fault’’ shall be defined by the Under Secretary by

10 regulation.

11 (7) Except as provided in paragraph (8), the

12 maturity of loans awarded or guaranteed under this

13 subtitle may not be less than 2 years or greater

14 than—

15 (A) 10 years; or

16 (B) the useful life of property, plant,

17 equipment, or other assets, as determined by

18 the Secretary of the Treasury, which have been

19 pledged as collateral for such loan,

20 whichever is greater.

21 (8) The Under Secretary may extend the matu22 rity of or renew a loan or extend the guarantee of

23 a loan for additional periods, not to exceed 5 years,

24 only if such extension or renewal will aid in the or25 derly liquidation of such loan.
67

•HR 820 RFS

1 (9) Payment of interest on direct loans made by

2 the Federal Government under this subtitle may be

3 deferred by the borrower, upon approval by the

4 Under Secretary, only to the extent that the bor5 rower has established to the satisfaction of the

6 Under Secretary that the borrower has not realized

7 sufficient earnings and returns of capital to make

8 such payment without incurring undue financial

9 hardship, and that there is a reasonable prospect

10 that such loan and interest thereon will be repaid.

11 (10) The Under Secretary may guarantee pay12 ment of 100 percent of principal and interest on a

13 loan made under section 331.

14 (11) The Under Secretary may establish,

15 charge, and regulate fees to cover loan origination

16 and servicing costs that are reasonable and nec17 essary.

18 SEC. 334. TECHNICAL ASSISTANCE FOR LENDERS AND BOR19 ROWERS.

20 The Secretary, acting through the Under Secretary,

21 shall, upon request, provide technical assistance and serv22 ices, as appropriate and needed, to lenders and borrowers

23 under this subtitle, and shall ensure that such lenders and

24 borrowers have ready access to appropriate assistance

25 available under title III of the Stevenson-Wydler Tech-
68

•HR 820 RFS

1 nology Innovation Act of 1980, or under any other Act,

2 in order to aid such lenders and borrowers in achieving

3 the purposes described in section 333(1). The Secretary

4 may charge fees for technical assistance and services pro5 vided under this section in amounts sufficient to cover the

6 reasonable cost of such assistance and services. The Sec7 retary may waive such fees on a case-by-case basis. Fees

8 paid to the United States under this section shall be de9 posited in an account established by the Under Secretary

10 and shall be available solely for carrying out this subtitle,

11 to the extent provided in advance in appropriations Acts.

12 SEC. 335. OUTREACH TO ECONOMICALLY DEPRESSED

13 AREAS.

14 The Secretary, acting through the Under Secretary,

15 shall seek to ensure that qualified business concerns lo16 cated in areas determined by the Secretary to have a de17 pressed economy, or a significant concentration of defense18 related industries, or chronically high unemployment, are

19 notified of the availability of financial assistance through

20 the program established under this subtitle and, to the ex21 tent practicable, to encourage and facilitate the participa22 tion of such qualified business concerns in such program.
69

•HR 820 RFS

1 SEC. 336. SOCIALLY AND ECONOMICALLY DISADVANTAGED

2 INDIVIDUALS.

3 The Secretary shall, to the fullest extent possible, en4 sure that at least 10 percent of amounts loaned under this

5 subtitle shall be made available to qualified business con6 cerns owned or controlled by socially and economically dis7 advantaged individuals (within the meaning of section 8(a)

8 (5) and (6) of the Small Business Act, and including

9 women). Nothing in this section shall permit or require

10 the use of quotas or a requirement that has the effect of

11 a quota in determining eligibility for loans made available

12 under this subtitle. Nothing in this section shall be consid13 ered to extend eligibility to individuals on the basis of sex14 ual orientation.

15 SEC. 337. DEFINITIONS.

16 For purposes of this subtitle, the terms ‘‘advanced

17 technologies’’, ‘‘critical technologies’’, and ‘‘qualified busi18 ness concern’’ have the meaning given such terms in sec19 tion 342 of this Act.

20 Subtitle D—Civilian Technology

21 Development Program

22 SEC. 341. SHORT TITLE.

23 This subtitle may be cited as the ‘‘Civilian Tech24 nology Development Act of 1993’’.

25 SEC. 342. DEFINITIONS.

26 For purposes of this subtitle—
70

•HR 820 RFS

1 (1) the term ‘‘advanced technologies’’ means

2 technologies eligible for assistance under the Ad3 vanced Technology Program established under sec4 tion 28 of the National Institute of Standards and

5 Technology Act (15 U.S.C. 278n);

6 (2) the term ‘‘articles’’ means articles of incor7 poration for an incorporated body, and the func8 tional equivalent, or other similar documents speci9 fied by the Under Secretary, for other business enti10 ties;

11 (3) the term ‘‘critical technologies’’ means tech12 nologies identified as critical technologies pursuant

13 to section 603(d) of the National Science and Tech14 nology Policy, Organization, and Priorities Act of

15 1976 (42 U.S.C. 6683(d));

16 (4) the term ‘‘Department’’ means the Depart17 ment of Commerce;

18 (5) the term ‘‘executive agency’’ has the mean19 ing given such term in section 105 of title 5, United

20 States Code;

21 (6) the term ‘‘license’’ means a license issued

22 by the Under Secretary under section 345;

23 (7) the term ‘‘licensee’’ means a company li24 censed under section 345;
71

•HR 820 RFS

1 (8) the term ‘‘preferred securities’’ means pre2 ferred stock or a preferred limited partnership inter3 est or other similar security, as defined by the

4 Under Secretary by regulation;

5 (9) the term ‘‘private equity capital’’ means the

6 paid-in capital and paid-in surplus, on hand or le7 gally committed to be provided, of a licensee orga8 nized as a corporation, or the partnership capital, on

9 hand or legally committed to be provided, of a li10 censee organized as an unincorporated partnership,

11 but does not include any funds—

12 (A) borrowed by the licensee from any

13 source;

14 (B) obtained from the sale of preferred se15 curities; or

16 (C) derived directly or indirectly from any

17 Federal source;

18 (10) the term ‘‘qualified business concern’’

19 means a United States company described in section

20 28(d)(9)(B) of the National Institute Standards and

21 Technology Act (15 U.S.C. 278n(d)(9)(B)), if—

22 (A) the business of such company includes

23 the pursuit, under the Small Business Innova24 tion Research (SBIR) program, of applications
72

•HR 820 RFS

1 described in section 9(e)(4)(C) of the Small

2 Business Act (15 U.S.C. 638(e)(4)(C));

3 (B) the principal business of such company

4 is the development or application of a critical

5 technology;

6 (C) such company is eligible for assistance

7 under the Advanced Technology Program

8 (ATP) established under section 28 of the Na9 tional Institute of Standards and Technology

10 Act (15 U.S.C. 278n); or

11 (D) such company is principally engaged in

12 the development or exploitation of inventions,

13 technological improvements, new processes, or

14 products not previously generally available

15 (within the meaning of section 851(e)(1) of the

16 Internal Revenue Code of 1986);

17 (11) the term ‘‘State’’ means several States, the

18 District of Columbia, the Commonwealth of Puerto

19 Rico, the Virgin Islands, Guam, American Samoa,

20 and the Commonwealth of the Northern Mariana Is21 lands, and any other territory or possession of the

22 United States;

23 (12) the term ‘‘State sponsored licensee’’ means

24 a company licensed under section 345 in which a

25 State or instrumentality of a State has at least a 25
73

•HR 820 RFS

1 percent investment interest in the private equity cap2 ital of such licensee;

3 (13) the term ‘‘university sponsored licensee’’

4 means a company licensed under section 345 in

5 which a single university or consortium of univer6 sities has at least a 25 percent investment interest

7 in the private equity capital of such licensee; and

8 (14) the term ‘‘venture capital’’ means consid9 eration for such—

10 (A) common stock;

11 (B) preferred stock;

12 (C) debt with equity features which may

13 include equity warrants or rights to convert into

14 common stock and which provides for interest

15 payments contingent upon and limited to the

16 extent of earnings; or

17 (D) other financing,

18 as the Under Secretary determines to be substan19 tially similar to equity financing, issued by a quali20 fied business concern.

21 SEC. 343. ESTABLISHMENT AND PURPOSE.

22 (a) ESTABLISHMENT.—There is established within

23 the Technology Administration of the Department of Com24 merce a national program to stimulate and supplement the

25 availability of long-term investment capital for the forma-
74

•HR 820 RFS

1 tion, development, and growth of qualified business con2 cerns throughout the United States. The Secretary,

3 through the Under Secretary, shall, through such pro4 gram, provide for the selection, licensing, monitoring, and

5 financial and technical support of professionally managed

6 technology investment companies which in turn shall pro7 vide financial, management, and technical assistance to

8 qualified business concerns, with preference given to satis9 fying the seed and early-stage financing needs of such con10 cerns that are not being met by other sources on reason11 able terms.

12 (b) PURPOSES.—The purposes of this subtitle are—

13 (1) to contribute to United States economic

14 competitiveness, employment, and prosperity;

15 (2) to promote the advancement, maturation,

16 and application of critical and other advanced tech17 nologies;

18 (3) to supplement and stimulate long-term in19 vestment in qualified business concerns; and

20 (4) to encourage and facilitate the formation

21 and growth of professionally managed technology in22 vestment companies throughout the United States

23 that will give preference to satisfying the capital

24 needs of qualified business concerns, especially dur25 ing their early stages of development.
75

•HR 820 RFS

1 (c) RESPONSIBILITIES.—(1) In carrying out this sub2 title, the Secretary, acting through the Under Secretary,

3 and subject to the availability of appropriations, shall—

4 (A) consult with and, to the extent permitted by

5 law, utilize the capabilities of other executive agen6 cies, as appropriate, to ensure the efficient and ef7 fective implementation of this subtitle;

8 (B) explore, with other executive agencies, ways

9 to avoid duplication of effort by consolidating the

10 administration of the program established by this

11 subtitle with any other similar Federal program, and

12 as part of such consolidation may delegate adminis13 trative functions, as necessary and appropriate, to

14 another executive agency;

15 (C) consult with the Secretary of Energy, the

16 Secretary of Defense, and the Administrator of the

17 National Aeronautics and Space Administration, on

18 all policy matters related to the Civilian Technology

19 Development Program that deal with development or

20 utilization of technologies developed by those agen21 cies;

22 (D) consult with State governments to ensure

23 that the existing programs run by or chartered by

24 State governments which seek to accomplish pur25 poses similar to those stated in subsection (b) are
76

•HR 820 RFS

1 encouraged and not undermined by the implementa2 tion of this subtitle; and

3 (E) explore with State governments ways in

4 which programs currently run by or chartered by

5 State governments which seek to accomplish pur6 poses similar to those stated in subsection (b) can

7 serve as models for the Secretary or be used to en8 sure the efficient and effective implementation of

9 this subtitle.

10 (2) To the extent permitted by law, other executive

11 agencies shall cooperate with the Under Secretary in car12 rying out this subtitle.

13 (d) OPERATING PLAN.—The Secretary, acting

14 through the Under Secretary, shall prepare (in consulta15 tion with the Advisory Committee established under sec16 tion 344, other appropriate executive agencies, the States,

17 United States companies, the financial community, and

18 other appropriate parties) and submit to the Congress on

19 or about November 1, 1993, an operating plan to carry

20 out this subtitle. In preparing such plan, the Secretary

21 shall consider and evaluate alternative approaches to

22 achieving the purposes of this subtitle and shall develop

23 recommendations, as appropriate, to fulfill the purposes

24 of this subtitle in the most effective and efficient manner
77

•HR 820 RFS

1 achievable. Such evaluations and recommendations shall

2 be included in the plan submitted under this subsection.

3 (e) OUTREACH TO ECONOMICALLY DEPRESSED

4 AREAS.—The Secretary, acting through the Under Sec5 retary, shall seek to ensure that qualified business con6 cerns located in areas determined by the Secretary to have

7 a depressed economy, or a significant concentration of de8 fense-related industries, or chronically high unemploy9 ment, are notified of the availability of financial assistance

10 through the program established under this subtitle and,

11 to the extent practicable, to encourage and facilitate the

12 participation of such qualified business concerns in such

13 program.

14 (f) EFFECTIVE DATE.—Except as provided in sub15 section (d) and in sections 344 and 351(a), the provisions

16 of this subtitle shall take effect on October 1, 1994.

17 SEC. 344. ADVISORY COMMITTEE.

18 (a) ESTABLISHMENT.—There is established a Civil19 ian Technology Development Advisory Committee (in this

20 section referred to as the ‘‘CTD Advisory Committee’’).

21 (b) COMPOSITION.—The CTD Advisory Committee

22 shall be composed of 7 members, appointed by the Under

23 Secretary from among private individuals who, because of

24 their experience and accomplishments in technology devel25 opment, maturation, and adoption, business development,
78

•HR 820 RFS

1 venture capital, finance, or other relevant areas, are excep2 tionally qualified to perform the duties of the CTD Advi3 sory Committee. The Under Secretary shall designate 1

4 member to serve as chairman.

5 (c) DUTIES.—The duties of the CTD Advisory Com6 mittee shall include advising the Under Secretary on all

7 matters related to policy, planning, execution, and evalua8 tion of the program established under this subtitle.

9 (d) TERMINATION.—Section 14 of the Federal Advi10 sory Committee Act shall not apply to the CTD Advisory

11 Committee.

12 SEC. 345. ORGANIZATION AND LICENSING.

13 (a) IN GENERAL.—Any incorporated body, limited

14 partnership, or State instrumentality organized and char15 tered or otherwise existing under State law for the purpose

16 of performing the functions and conducting the activities

17 contemplated under this subtitle, that possesses the pow18 ers, capabilities, and expertise reasonably necessary to

19 perform such functions and conduct such activities, may

20 apply for a license under this subtitle in such form and

21 manner as the Under Secretary may prescribe.

22 (b) ARTICLES.—The articles of any applicant shall

23 specify in general terms the objects for which the applicant

24 is formed, the name assumed by such applicant, the area

25 or areas in which its operations are to be carried on, the
79

•HR 820 RFS

1 place where its principal office is to be located, and the

2 amount and classes of its shares of capital stock. Such

3 articles may contain any other provisions not inconsistent

4 with this subtitle that the applicant may see fit to adopt

5 for the regulation of its business and the conduct of its

6 affairs. Such articles and any amendments thereto adopt7 ed from time to time shall be subject to the approval of

8 the Under Secretary.

9 (c) BUSINESS PLAN.—The business plan of any ap10 plicant shall specify in general terms—

11 (1) how the applicant proposes to achieve the

12 objects for which it is formed, to operate and govern

13 its business, and to fulfill the purposes and satisfy

14 the requirements of this subtitle;

15 (2) the board members or general partners and

16 the management and professional staff of the appli17 cant, and the professional training, experience, rep18 utation, and investment performance record, if any,

19 of each such individual, along with a description of

20 the applicant’s current and proposed management

21 structure;

22 (3) all current or committed private investors in

23 the applicant, together with the amount, terms, con24 ditions, and conveyances associated with such invest-
80

•HR 820 RFS

1 ment, and appropriate background information on

2 each private investor; and

3 (4) such other information as the Under Sec4 retary may require.

5 Such business plan and any material amendments thereto

6 adopted from time to time shall be subject to the approval

7 of the Under Secretary.

8 (d) APPROVAL OF ARTICLES AND BUSINESS PLAN;

9 LICENSING.—The articles and business plan of an appli10 cant for a license shall be forwarded to the Under Sec11 retary for consideration and approval or disapproval. In

12 determining whether to approve a prospective licensee’s

13 articles and business plan and permit it to operate under

14 the provisions of this subtitle, the Under Secretary shall

15 give due regard, among other things, to the general busi16 ness reputation, character, suitability, and demonstrated

17 ability, experience, and performance in the development,

18 growth, and financing of qualified business concerns, of

19 the proposed owners and management of the prospective

20 licensee, and the likelihood of successful operations of the

21 prospective licensee including adequate profitability and fi22 nancial soundness. After consideration of all relevant fac23 tors, if the Under Secretary approves the company’s arti24 cles and business plan and determines that the applicant

25 satisfies or will satisfy the requirements of this subtitle,
81

•HR 820 RFS

1 the Under Secretary may approve the company to operate

2 under the provisions of this subtitle and issue the company

3 a license for such operation.

4 SEC. 346. CAPITAL AND MANAGEMENT REQUIREMENTS.

5 (a) CAPITAL.—(1) The private equity capital of a li6 censee shall be adequate to ensure a reasonable prospect

7 that the licensee will be operated soundly and profitably,

8 and managed actively and prudently in accordance with

9 its articles and business plan. Such private equity capital

10 shall not be less than $5,000,000, except that, in the case

11 of a State sponsored licensee or a university sponsored li12 censee, such private equity capital shall not be less than

13 $2,500,000. At the time of issuance of a license, not less

14 than 75 percent of the private equity capital of the licensee

15 shall be available or committed to be available for new in16 vestment in accordance with this subtitle.

17 (2) To the extent permitted by other law, including

18 the Employee Retirement Income Security Act of 1974

19 (29 U.S.C. 1001 et seq.), private and public pension funds

20 may contribute to the private equity capital of a licensee

21 without restriction as to the amount of such contribution.

22 (3) State and local government entities may contrib23 ute not more than 40 percent of the total private equity

24 capital of a licensee.
82

•HR 820 RFS

1 (4) The aggregate amount of shares in any such li2 censee or licensees which may be owned or controlled by

3 any stockholder, or by any group or class of stockholders,

4 may be limited by the Under Secretary.

5 (b) MANAGEMENT.—The management and oper6 ational control of a licensee shall be carried out by suitable

7 private individuals who possess the professional training,

8 experience, and capabilities reasonably necessary to

9 achieve the purposes of this subtitle.

10 SEC. 347. FINANCING FOR LICENSEES.

11 (a) AUTHORITY TO PURCHASE AND GUARANTEE

12 PREFERRED SECURITIES.—To encourage and facilitate

13 the formation and growth of licensees and qualified busi14 ness concerns, the Under Secretary may purchase or com15 mit to purchase nonvoting preferred securities, with or

16 without equity warrants, issued by a licensee, or guaran17 tee, or commit to guarantee, the payment of 100 percent

18 of the redemption price of and dividends on such preferred

19 securities, to the extent provided in appropriations Acts,

20 if the licensee has demonstrated to the satisfaction of the

21 Under Secretary that it is financially sound and that it

22 has complied with or will comply with the requirements

23 of this subtitle, the terms of its license, and any rule, regu24 lation, or order issued under this subtitle. Such purchases

25 and guarantees shall constitute direct loans and loan guar-
83

•HR 820 RFS

1 antees within the meaning of paragraphs (1) and (3) of

2 section 502 of the Federal Credit Reform Act of 1990,

3 respectively. A trust or pool acting on behalf of the Under

4 Secretary may purchase preferred securities that are guar5 anteed under this subsection.

6 (b) TERMS AND CONDITIONS OF PREFERRED SECU7 RITIES.—(1) Guarantees and purchases of preferred secu8 rities, or commitments to make such guarantees and pur9 chases, under this section may be made on such terms and

10 conditions as the Under Secretary shall establish by regu11 lation or set forth in contract to ensure compliance with

12 this subtitle and to protect the interests of taxpayers and

13 the United States in the event of default or otherwise. For

14 purposes of this paragraph, the Under Secretary shall by

15 regulation define the term ‘‘default’’.

16 (2)(A) Except as provided in subparagraph (B), pre17 ferred securities issued under this section shall be senior

18 in priority for all purposes to all non-Federal equity inter19 ests in a licensee unless the Under Secretary, in the exer20 cise of reasonable investment prudence and in considering

21 the financial soundness of the licensee, determines other22 wise.

23 (B) The equity interests of a university or consortium

24 of universities, or of a State or instrumentality of a State,

25 in a licensee shall be equal in priority to Federal equity
84

•HR 820 RFS

1 interests in such licensee for all purposes unless the Under

2 Secretary, in the exercise of reasonable investment pru3 dence and in considering the financial soundness of the

4 licensee, determines otherwise.

5 (3) Preferred securities issued under this section

6 shall be redeemed by the issuer not later than 10 years

7 after their date of issuance for an amount equal to 100

8 percent of the original issue price plus any accrued and

9 unpaid dividends. In order to facilitate the orderly liquida10 tion of a licensee’s investments, redemption of such pre11 ferred securities may be extended by mutual consent for

12 no more than 5 years beyond such expiration date.

13 (4) Preferred securities issued under this section

14 shall pay dividends at a rate determined by the Secretary

15 of the Treasury at the time of issuance to equal the then

16 current average market yield on outstanding marketable

17 debt obligations of the United States with remaining peri18 ods to maturity comparable to the time to required re19 demption of such preferred securities, plus such additional

20 charge, if any, toward covering expected defaults and rea21 sonable administrative costs of carrying out this subtitle

22 as the Under Secretary may determine to be reasonable

23 and appropriate. Such additional charge shall not exceed

24 2 percent.
85

•HR 820 RFS

1 (5) Dividends on preferred securities issued under

2 this section shall be cumulative and preferred and paid

3 out of net realized earnings and returns of capital avail4 able for distribution, as defined by the Under Secretary

5 by regulation.

6 (6) The payment of dividends on preferred securities

7 issued under this section may be deferred by the issuer

8 until such time as, and to the extent that, the issuer real9 izes earnings and returns of capital available for distribu10 tion. Accumulated and unpaid dividends on such preferred

11 securities shall be paid by the issuer before or at the time

12 of redemption of the preferred securities and before any

13 distribution of net realized earnings and returns of capital

14 of the issuer to its non-Federal equity investors, except

15 as provided in subsection (e)(2) (B) and (C). With respect

16 to preferred securities issued under this section to a party

17 other than the Under Secretary, during the time of any

18 deferral under this paragraph, the Under Secretary shall

19 make, on behalf of the issuer, required dividend payments

20 to the holder of the preferred securities, its agents or as21 signs, or the appropriate central registration agent, if any.

22 The authority to make dividend payments provided in this

23 paragraph shall be limited to the extent of amounts pro24 vided in advance in appropriations Acts for such purposes.
86

•HR 820 RFS

1 (7) For purposes of this subsection, the term ‘‘divi2 dends’’ means dividends on preferred stock and returns

3 on preferred limited partnership interests or other similar

4 securities, as defined by the Under Secretary by regula5 tion.

6 (c) LIMITATIONS AND RESTRICTIONS.—(1) The total

7 principal amount of debt, as evidenced by notes, bonds,

8 debentures, or certificates of indebtedness, plus the total

9 face amount of preferred securities purchased or guaran10 teed by the Under Secretary under subsection (a), issued

11 and outstanding from a licensee shall not exceed 200 per12 cent of the private equity capital of the licensee.

13 (2) The total face amount of preferred securities pur14 chased or guaranteed by the Under Secretary under sub15 section (a) and outstanding from a licensee or a combina16 tion of licensees which are commonly controlled, as defined

17 and determined by the Under Secretary, shall not exceed

18 $50,000,000.

19 (3)(A) If preferred securities issued under this sec20 tion are outstanding, then the issuing licensee shall be

21 subject to the following restrictions:

22 (i) The total principal amount of debt, as evi23 denced by notes, bonds, debentures, or certificates of

24 indebtedness, of a licensee issued and outstanding
87

•HR 820 RFS

1 may not exceed 50 percent of the private equity cap2 ital of the licensee.

3 (ii) The annual management expenses of a li4 censee shall not exceed an amount which the Under

5 Secretary determines to be reasonable and appro6 priate.

7 (iii) The aggregate amount of obligations and

8 securities acquired and for which commitments may

9 be issued by a licensee for any single qualified busi10 ness concern shall not exceed $2,000,000 or 20 per11 cent of the private equity capital of such licensee,

12 whichever is greater, unless the Under Secretary ap13 proves a greater amount.

14 (B) For purposes of this paragraph, the term ‘‘man15 agement expenses’’ includes expenses incurred in the nor16 mal course of operations, but shall not include the cost

17 of legal, accounting, and consulting services provided by

18 outside parties and by affiliates of the licensee which are

19 not normal practice in making and monitoring investments

20 consistent with the purposes of this subtitle.

21 (d) USE OF CAPITAL BY LICENSEES.—(1) A licensee

22 issuing preferred securities under this section shall invest

23 or commit to invest—

24 (A) an amount equal to the face value of such

25 preferred securities that are outstanding; plus
88

•HR 820 RFS

1 (B) an amount of its private equity capital

2 equal to 50 percent of the amount described in sub3 paragraph (A),

4 in the venture capital of qualified business concerns in ac5 cordance with section 349.

6 (2) At least 50 percent of the amount of investments

7 required under paragraph (1) shall be for seed and early

8 stage financing, as defined by the Under Secretary by reg9 ulation. The Under Secretary may alter the percentage re10 quirement under this paragraph to the extent necessary,

11 in the determination of the Under Secretary, to achieve

12 the purposes of this subtitle and maintain prudent invest13 ment diversification.

14 (3) Proceeds to a licensee derived from preferred se15 curities issued under this section may be used by the is16 suer to redeem any preferred securities issued under this

17 section that have been outstanding at least 5 years, as

18 provided in subsection (b)(3).

19 (4) Proceeds to a licensee derived from preferred se20 curities issued under this section that have not been in21 vested pursuant to paragraphs (1) and (2) or used for re22 demptions pursuant to paragraph (3) and are not reason23 ably needed for the operations of the licensee shall be in24 vested in direct obligations of, or obligations guaranteed

25 as to principal and interest by, the United States, or in
89

•HR 820 RFS

1 certificates of deposit maturing within one year or less,

2 issued by any institution the accounts of which are insured

3 by the Federal Deposit Insurance Corporation.

4 (e) PROFIT DISTRIBUTION BY LICENSEES.—(1) Any

5 distribution of net realized earnings and returns of capital

6 made by a licensee that exceeds amounts required for the

7 purposes stated in paragraph (2) shall be distributed pro

8 rata to all investors entitled to such distributions. The

9 United States shall receive no funds under this paragraph.

10 (2)(A) Except as provided in subparagraphs (B) and

11 (C), any distribution of net realized earnings and returns

12 of capital made by a licensee shall first be used to pay

13 accumulated and unpaid dividends owed on outstanding

14 preferred securities issued under this section and to satisfy

15 the redemption requirements of subsection (b)(3).

16 (B) For purposes of subparagraph (A), the redemp17 tion requirements of subsection (b)(3) shall be considered

18 to be satisfied if necessary and appropriate actions, as de19 termined by the Under Secretary, have been undertaken

20 by the licensee to ensure that such requirements will be

21 satisfied.

22 (C) If a licensee is operating as a limited partnership

23 or as a corporation described in subchapter S of chapter

24 1 of subtitle A of the Internal Revenue Code of 1986 or

25 an equivalent pass-through entity for tax purposes, it may
90

•HR 820 RFS

1 distribute to the partners or shareholders an amount equal

2 to the estimated amount of Federal, State, and local in3 come taxes due from such partners and shareholders on

4 their share of undistributed taxable income for the current

5 taxable year before payments described in subparagraph

6 (A) are made.

7 (f) USE OF PAYMENTS TO THE UNITED STATES.—

8 Amounts received by the United States from the payment

9 of dividends and the redemption of preferred securities

10 pursuant to this section, and fees paid to the United

11 States by a licensee pursuant to this subtitle, shall be de12 posited in an account established by the Under Secretary

13 and shall be available solely for carrying out this subtitle,

14 to the extent provided in advance in appropriations Acts.

15 SEC. 348. ISSUANCE AND GUARANTEE OF TRUST CERTIFI16 CATES.

17 (a) AUTHORITY TO ISSUE TRUST CERTIFICATES.—

18 The Under Secretary is authorized to issue trust certifi19 cates representing ownership of all or a fractional part of

20 preferred securities issued by licensees and guaranteed by

21 the Under Secretary under this subtitle. Such trust certifi22 cates shall be based on and backed by a trust or pool ap23 proved by the Under Secretary and composed of preferred

24 securities and such other contractual obligations as the
91

•HR 820 RFS

1 Under Secretary may undertake to facilitate the sale of

2 such trust certificates.

3 (b) GUARANTEE OF TRUST CERTIFICATES.—The

4 Under Secretary is authorized, upon such terms and con5 ditions as are deemed appropriate, to guarantee the timely

6 payment of the principal of and interest on trust certifi7 cates issued by the Under Secretary or his agent for pur8 poses of this section. Such guarantee shall be limited to

9 the extent of the redemption price of and dividends on the

10 preferred securities, plus any related contractual obliga11 tions, which compose the trust or pool.

12 (c) PREPAYMENTS AND REDEMPTIONS.—In the event

13 that preferred securities or contractual obligations in such

14 trust or pool are redeemed or extinguished, either volun15 tarily or involuntarily, the guarantee of timely payment

16 of principal and interest on the trust certificates shall be

17 reduced in proportion to the amount of redemption price

18 and dividends such redeemed preferred security or extin19 guished contractual obligation represents in the trust or

20 pool. Dividends or partnership profit distributions on such

21 preferred securities and related contractual obligations,

22 shall accrue and be guaranteed by the Under Secretary

23 only through the date of payment on the guarantee. Dur24 ing the term of the trust certificate, it may be called for
92

•HR 820 RFS

1 redemption, whether voluntary or involuntary, of all pre2 ferred securities residing in the pool.

3 (d) FEES.—The Under Secretary may collect fees for

4 a guarantee under this section that are reasonable and

5 customary.

6 (e) PAYMENT OF CLAIMS.—(1) In the event the

7 Under Secretary pays a claim under a guarantee issued

8 under this section, it shall be subrogated fully to the rights

9 satisfied by such payment.

10 (2) No State or local law, and no Federal law, shall

11 preclude or limit the exercise by the Under Secretary of

12 ownership rights in the preferred securities residing in a

13 trust or pool against which trust certificates are issued.

14 (f) REGISTRATION AND INTERMEDIARY OPER15 ATIONS.—(1) The Under Secretary shall provide for a

16 central registration of all trust certificates sold pursuant

17 to this section. Such central registration shall include with

18 respect to each sale, identification of each licensee, the in19 terest rate or dividend rate paid by the licensee, commis20 sions, fees, or discounts paid to brokers and dealers in

21 trust certificates, identification of each purchaser of the

22 trust certificate, the price paid by the purchaser for the

23 trust certificate, the interest rate paid on the trust certifi24 cate, the fees of any agent for carrying out the functions
93

•HR 820 RFS

1 described in paragraph (2), and such other information

2 as the Under Secretary deems appropriate.

3 (2) The Under Secretary shall contract with an agent

4 or agents to carry out on behalf of the Under Secretary

5 the pooling and the central registration functions of this

6 section including, notwithstanding any other provision of

7 law, maintenance on behalf of and under the direction of

8 the Under Secretary, such commercial bank accounts as

9 may be necessary to facilitate trusts or pools backed by

10 securities guaranteed or purchased under this subtitle,

11 and the issuance of trust certificates to facilitate such

12 poolings. Such agent or agents shall provide a fidelity

13 bond or insurance in such amounts as the Under Secretary

14 determines to be necessary to fully protect the interests

15 of the Federal Government.

16 (3) Prior to any sale, the Under Secretary shall re17 quire the seller to disclose to a purchaser of a trust certifi18 cate issued pursuant to this section, information on the

19 terms, conditions, and yield of such instrument.

20 SEC. 349. VENTURE CAPITAL FOR QUALIFIED BUSINESS

21 CONCERNS.

22 Each licensee may provide venture capital to qualified

23 business concerns, in such manner and under such terms

24 as the licensee may fix in accordance with the regulations

25 of the Under Secretary.
94

•HR 820 RFS

1 SEC. 350. OPERATION.

2 (a) COOPERATION.—Wherever practicable the oper3 ations of a licensee, including the generation of business,

4 may be undertaken in cooperation with banks or other li5 censees, investors, or lenders, incorporated or unincor6 porated, and any servicing or initial investigation required

7 for loans or acquisitions of securities by the licensee under

8 the provisions of this subtitle may be handled through

9 such banks or other licensees, investors, or lenders on a

10 fee basis. Any licensee may receive fees for services ren11 dered to such banks and other licensees, investors, and

12 lenders.

13 (b) ADVISORY SERVICES.—Each licensee may make

14 use, wherever practicable, of the advisory services of the

15 Federal Reserve System and of the Department of Com16 merce which are available for and useful to industrial and

17 commercial businesses, and may provide consulting and

18 advisory services on a fee basis and have on its staff per19 sons competent to provide such services. A licensee may

20 not charge fees for such services that are provided to a

21 qualified business concern in which it has an investment.

22 SEC. 351. REGULATIONS; LIABILITY.

23 (a) REGULATIONS.—The Under Secretary is author24 ized to prescribe regulations governing the operations of

25 licensees, and to carry out the provisions of this subtitle,

26 in accordance with the purposes of this subtitle.
95

•HR 820 RFS

1 (b) LIABILITY OF THE UNITED STATES.—Nothing in

2 this subtitle or in any other provision of law imposes any

3 liability on the United States with respect to any obliga4 tions entered into, or stocks issued, or commitments made,

5 by any licensee operating under the provisions of this

6 subtitle.

7 SEC. 352. TECHNICAL ASSISTANCE FOR LICENSEES AND

8 QUALIFIED BUSINESS CONCERNS.

9 (a) TECHNICAL ASSISTANCE.—The Secretary shall,

10 upon request, provide technical assistance and services, as

11 appropriate and needed, to licensees and to qualified busi12 ness concerns receiving financial assistance under this

13 subtitle, and shall ensure that such qualified business con14 cerns have ready access to appropriate assistance available

15 under title III of the Stevenson-Wydler Technology Inno16 vation Act of 1980, or under any other Act, in order to

17 aid such qualified business concerns in their development

18 or utilization of critical or other advanced technologies.

19 Technical assistance and services under this subsection

20 shall include providing licensees and qualified business

21 concerns with—

22 (1) an assessment of the technological and sci23 entific feasibility of a project, or an analysis of a

24 specific field of technical or scientific endeavor;
96

•HR 820 RFS

1 (2) improved access to technology developed by

2 the Institute and assistance in obtaining access to

3 technology developed by other Federal agencies and

4 laboratories;

5 (3) expert analysis of the economics of tech6 nology development undertaken by a qualified busi7 ness concern; and

8 (4) any other assistance or service that the

9 Under Secretary determines, after consultation with

10 licensees and qualified business concerns, is nec11 essary and appropriate to enhance prospects for suc12 cess and to reduce technical risk for licensees and

13 qualified business concerns.

14 (b) FEES.—The Secretary may charge fees for serv15 ices and technical assistance provided under subsection (a)

16 in amounts sufficient to cover the reasonable cost of such

17 services and assistance. The Secretary may waive fees es18 tablished under this subsection.

19 SEC. 353. PERFORMANCE MEASURES; ANNUAL REPORT.

20 (a) PERFORMANCE MEASURES.—The performance of

21 the program established under this subtitle shall be evalu22 ated relative to progress made in achieving its purposes

23 and shall be measured in relevant and meaningful terms

24 such as significant accomplishments in advancing tech25 nology, businesses formed and financed, jobs created,
97

•HR 820 RFS

1 taxes generated, licenses granted and maintained, capital

2 invested, and other criteria the Under Secretary may deem

3 appropriate.

4 (b) ANNUAL REPORT.—The Under Secretary shall

5 prepare, in consultation with the advisory committee es6 tablished under section 344, and submit annually a report

7 to the Congress containing a full and detailed account of

8 operations under this subtitle. Such report shall include—

9 (1) an assessment of progress made in achiev10 ing the purposes of this subtitle;

11 (2) performance measures established under

12 subsection (a);

13 (3) a list of licensees along with their location,

14 area of operations, investment objectives, capitaliza15 tion, and net asset value, both at cost and at current

16 fair market value;

17 (4) an audit setting forth the amount, type, re18 cipient, and source of disbursements, receipts, and

19 losses sustained by the Federal Government as a re20 sult of operations under this subtitle during the pre21 ceding fiscal year and since inception of the pro22 gram;

23 (5) the Under Secretary’s plans to ensure the

24 provision of licensee financing to all areas of the

25 country and to all qualified business concerns, and
98

•HR 820 RFS

1 plans to notify and to encourage and facilitate the

2 participation of qualified business concerns as re3 quired by section 343(e), including steps taken to

4 accomplish those goals;

5 (6) steps taken by the Under Secretary to carry

6 out this subtitle and to ensure compliance with stat7 utory and regulatory standards relating thereto; and

8 (7) recommendations with respect to program

9 changes, statutory changes, and other matters, in10 cluding tax incentives, to improve and facilitate the

11 operations of licensees and to encourage the use of

12 their financing facilities by qualified business con13 cerns.

14 SEC. 354. REPORTS, INVESTIGATIONS, AND EXAMINATIONS.

15 (a) REPORTING REQUIREMENTS.—Each license is16 sued under this subtitle shall require a licensee with out17 standing preferred securities to provide the Under Sec18 retary such information, including companies financed,

19 disbursements made along with associated terms and con20 ditions, receipts, portfolio valuation and net asset value

21 at cost and at estimated fair market value, and other fi22 nancial statements, that the Under Secretary may require

23 to satisfy the requirements of section 353(b) and to deter24 mine, in a timely manner, compliance with this subtitle
99

•HR 820 RFS

1 and regulations promulgated under this subtitle. Such re2 porting shall be—

3 (1) except as otherwise provided in this sub4 section, consistent with the reporting practices and

5 standards of the venture capital industry;

6 (2) uniform for all licensees;

7 (3) submitted annually to the Under Secretary,

8 with valuation and other information provided more

9 frequently as the Under Secretary may require; and

10 (4) certified by the Board of Directors or the

11 General Partners of the licensee.

12 The Under Secretary may exempt from making such re13 ports any licensee which is registered under the Invest14 ment Company Act of 1940 only to the extent necessary

15 to avoid duplication in reporting requirements.

16 (b) VALUATIONS.—The Under Secretary shall, by

17 regulation, establish guidelines for estimating the fair

18 market value of investments held by a licensee as required

19 under subsection (a). The board of directors of a corporate

20 licensee and the general partners of a partnership licensee

21 shall have the sole responsibility for making a good faith

22 determination of the fair market value of investments held

23 by such licensee, based on guidelines established under

24 this subsection.
100

•HR 820 RFS

1 (c) INVESTIGATIONS.—The Secretary may undertake

2 investigations to determine whether a licensee or any other

3 person has engaged or is about to engage in any acts or

4 practices which constitute or will constitute a violation of

5 any provision of this subtitle, or of any rule, regulation,

6 or order issued under this subtitle. The Secretary shall

7 permit any person to file a statement in writing, under

8 oath or otherwise as the Secretary shall determine, as to

9 all the facts and circumstances concerning the matter to

10 be investigated. For the purpose of any investigation, the

11 Secretary is empowered to administer oaths and affirma12 tions, subpoena witnesses, compel their attendance, take

13 evidence, and require the production of any books, papers,

14 and documents which are relevant to the inquiry.

15 (d) EXAMINATIONS.—Each licensee shall be subject

16 to examinations made at the discretion and direction of

17 the Under Secretary by examiners selected or approved

18 by, and under the supervision of, the Under Secretary.

19 The Under Secretary may enter into contracts with pri20 vate parties to perform such examinations. The cost of

21 such examinations, including the compensation of the ex22 aminers, may in the discretion of the Under Secretary be

23 assessed against the licensee examined and when so as24 sessed shall be paid by such licensee.
101

•HR 820 RFS

1 SEC. 355. REVOCATION AND SUSPENSION OF LICENSES;

2 CEASE AND DESIST ORDERS.

3 (a) GROUNDS FOR REVOCATION OR SUSPENSION.—

4 A license may be revoked or suspended by the Secretary—

5 (1) for willful or repeated violation of any provi6 sion of this subtitle or any rule, regulation, or order

7 issued thereunder; or

8 (2) if the licensee no longer serves the purposes

9 for which it was granted a license.

10 (b) CEASE AND DESIST ORDERS.—Where a licensee

11 or any other person has not complied with any provision

12 of this subtitle, or of any rule, regulation, or order issued

13 thereunder, or is engaging or is about to engage in any

14 acts or practices which constitute or will constitute a viola15 tion of such provision, rule, regulation, or order, the Sec16 retary may order such licensee or other person to cease

17 and desist from such action or failure to act. The Sec18 retary may further order such licensee or other person to

19 take such action or to refrain from such action as the Sec20 retary considers necessary to ensure compliance with such

21 provisions, rules, regulations, or orders. The Secretary

22 may also suspend the license of a licensee, against whom

23 an order has been issued, until such licensee complies with

24 such order.

25 (c) SUBPOENAS.—The Secretary may require by sub26 poenas the attendance and testimony of witnesses and the
102

•HR 820 RFS

1 production of all books, papers, and documents relating

2 to the hearing from any place in the United States.

3 (d) ENFORCEMENT.—If any licensee or other person

4 against which or against whom an order is issued under

5 this section fails to obey the order, the Secretary may

6 apply to the district court of the United States for the

7 district where the licensee has its principal place of busi8 ness, for the enforcement of the order.

9 SEC. 356. INJUNCTIVE RELIEF.

10 (a) IN GENERAL.—If the Secretary determines that

11 a licensee or any other person has engaged, or is about

12 to engage, in any acts or practices which constitute a vio13 lation of any provision of this subtitle, or of any rule, regu14 lation, or order issued under this subtitle, the Secretary

15 may apply to the appropriate district court of the United

16 States for injunctive relief.

17 (b) RECEIVERSHIP.—Whenever it is necessary in

18 order to achieve the purposes of injunctive relief granted

19 under subsection (a), and upon proper application by the

20 Secretary, the court may order the attachment of assets

21 of a licensee and may appoint a receiver to administer

22 such assets under the direction of the court.

23 SEC. 357. CONFLICTS OF INTEREST.

24 For the purpose of controlling conflicts of interest

25 which may be detrimental to qualified business concerns,
103

•HR 820 RFS

1 to licensees, to the shareholders or partners of either, or

2 to the purposes of this subtitle, the Under Secretary shall

3 adopt regulations to govern transactions with any officer,

4 director, shareholder, or partner of any licensee, or with

5 any person or concern, in which any interest, direct or in6 direct, financial or otherwise, is held by any officer, direc7 tor, shareholder, or partner of (1) any licensee, or (2) any

8 person or concern with an interest, direct or indirect, fi9 nancial or otherwise, in any licensee. Such regulations

10 shall include appropriate requirements for public disclo11 sure (including disclosure in the locality most directly af12 fected by the transaction) necessary to the purposes of this

13 section.

14 SEC. 358. REMOVAL OR SUSPENSION OF DIRECTORS AND

15 OFFICERS.

16 (a) GROUNDS.—The Secretary, after an opportunity

17 for agency hearing, may serve upon any director or officer

18 of a licensee a written notice of its intention to remove

19 such director or officer from office, temporarily or perma20 nently, whenever in the opinion of the Secretary such di21 rector or officer—

22 (1) has willfully and knowingly—

23 (A) committed any substantial violation of

24 this subtitle or any rule, regulation, or order is25 sued under this subtitle; or
104

•HR 820 RFS

1 (B) committed or engaged in any act,

2 omission, or practice which constitutes a sub3 stantial breach of his fiduciary duty as such di4 rector or officer,

5 and that such violation or such breach of fiduciary

6 duty is one involving personal dishonesty on the part

7 of such director or officer; or

8 (2) has been convicted of a felony involving dis9 honesty or breach of trust.

10 (b) HEARING.—A hearing under this section shall be

11 on the record and shall be held in the Federal judicial dis12 trict or in the territory in which the principal office of

13 the licensee is located unless the party afforded the hear14 ing consents to another place. A hearing under this section

15 shall be fixed for a date not earlier than 30 days nor later

16 than 60 days after the date of service of such notice, un17 less an earlier or a later date is set by the Secretary at

18 the request of (1) such director or officer and for good

19 cause shown, or (2) the Attorney General of the United

20 States. Unless such director or officer shall appear at the

21 hearing in person or by a duly authorized representative,

22 he shall be deemed to have consented to the issuance of

23 an order of such removal.
105

•HR 820 RFS

1 SEC. 359. VIOLATIONS.

2 (a) PARTICIPATION.—Whenever a licensee commits a

3 violation of this subtitle, or any rule, regulation, or order

4 issued under this subtitle, such violation shall be deemed

5 to be also a violation on the part of any person who, di6 rectly or indirectly, authorizes, orders, participates in, or

7 causes, brings about, counsels, aids, or abets in the com8 mission of such violation.

9 (b) BREACH OF FIDUCIARY DUTY.—It shall be a vio10 lation of this subtitle for any officer, director, employee,

11 agent, or other participant in the management or conduct

12 of the affairs of a licensee to engage in any act or practice,

13 or to omit any act, in breach of his fiduciary duty as such

14 officer, director, employee, agent, or participant, if, as a

15 result thereof, the licensee has suffered or is in imminent

16 danger of suffering financial loss or other damage.

17 (c) DISQUALIFICATION.—Except with the written

18 consent of the Secretary, it shall be a violation of this sub19 title for any person to take office, or to continue to serve,

20 as an officer, director, or employee of a licensee, or to be21 come or continue to serve as an agent or participant in

22 the conduct of the affairs or management of a licensee,

23 if such person—

24 (1) has been convicted of a felony, or any other

25 criminal offense involving dishonesty or breach of

26 trust; or
106

•HR 820 RFS

1 (2) has been found civilly liable in damages, or

2 has been permanently or temporarily enjoined by an

3 order, judgment, or decree of a court of competent

4 jurisdiction, by reason of any act or practice involv5 ing fraud or breach of trust.

6 SEC. 360. CIVIL PENALTIES.

7 Any person who is found by the Secretary, after no8 tice and opportunity to be heard on the record in accord9 ance with section 554 of title 5, United States Code, to

10 have committed a violation of this subtitle or any rule,

11 regulation, or order issued under this subtitle shall be lia12 ble to the United States for a civil penalty of not more

13 than $1,000 for each violation. Each day of a continuing

14 violation shall constitute a separate violation. The amount

15 of such civil penalty shall be assessed by the Secretary

16 by written notice. The Secretary may compromise, modify,

17 or remit, with or without conditions, any civil penalty

18 which is subject to imposition or which has been imposed

19 under this section.

20 SEC. 361. ANTITRUST SAVINGS CLAUSE.

21 This subtitle shall not be construed to modify, impair,

22 or supersede the operation of the antitrust laws. For pur23 poses of this section, the term ‘‘antitrust laws’’ has the

24 meaning given it in subsection (a) of the first section of

25 the Clayton Act (15 U.S.C. 12(a)), except that such term
107

•HR 820 RFS

1 includes the Act of June 19, 1936 (49 Stat. 1526; 15

2 U.S.C. 13 et seq.), commonly known as the Robinson Pat3 man Act, and section 5 of the Federal Trade Commission

4 Act (15 U.S.C. 45) to the extent that such section 5 ap5 plies to unfair methods of competition.

6 TITLE IV—MISCELLANEOUS

7 SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY AD8 VISORY BOARD.

9 (a) ESTABLISHMENT.—There is established a De10 partment of Commerce Technology Advisory Board (in

11 this section referred to as the ‘‘Advisory Board’’) to assist

12 the Technology Administration in the performance of its

13 functions.

14 (b) COMPOSITION.—The Advisory Board shall be

15 composed of at least 17 members, appointed by the Under

16 Secretary from among individuals who, because of their

17 experience and accomplishments are exceptionally quali18 fied to provide advice to the Under Secretary on the plans,

19 programs, and policy of the Technology Administration.

20 The Under Secretary shall make an effort to ensure the

21 appointment of socially and economically disadvantaged

22 individuals (within the meaning of section 8(a) (5) and

23 (6) of the Small Business Act, and including women) to

24 the Advisory Board. The Under Secretary shall designate
108

•HR 820 RFS

1 1 member to chair the Advisory Board. Membership of

2 the Advisory Board shall include representatives of—

3 (1) United States small businesses;

4 (2) other United States manufacturers;

5 (3) research universities and independent re6 search institutes;

7 (4) State and local government agencies in8 volved in technology extension;

9 (5) national laboratories;

10 (6) industrial, worker, and professional organi11 zations;

12 (7) financial organizations; and

13 (8) computing and communications equipment

14 and services providers.

15 (c) DUTIES.—The duties of the Advisory Board shall

16 include advising the Secretary, the Under Secretary, and

17 the Director regarding—

18 (1) the development of policies and options for

19 implementation that the Advisory Board considers

20 essential to technology creation, development, and

21 adoption, including policies that would benefit small

22 businesses;

23 (2) the development and rapid application of

24 critical and other advanced technologies, including

25 advanced manufacturing technologies;
109

•HR 820 RFS

1 (3) the development of computer and commu2 nications support services for advanced manufactur3 ing; and

4 (4) the planning, execution, and evaluation of

5 programs under the authority of the Technology Ad6 ministration.

7 (d) MEETINGS.—(1) The chairman shall call the first

8 meeting of the Advisory Board not later than 90 days

9 after the date of enactment of this Act.

10 (2) The Advisory Board shall meet at least once every

11 6 months, and at the call of the Under Secretary.

12 (e) TRAVEL EXPENSES.—Members of the Advisory

13 Board, other than full-time employees of the United

14 States, shall be allowed travel expenses in accordance with

15 subchapter I of chapter 57 of title 5, United States Code,

16 while engaged in the business of the Advisory Board.

17 (f) CONSULTATION.—In carrying out this section, the

18 Under Secretary shall consult with other agencies, as ap19 propriate.

20 (g) TERMINATION.—Section 14 of the Federal Advi21 sory Committee Act shall not apply to the Advisory Board.

22 (h) SECRETARIAL DISCRETION.—Notwithstanding

23 any other provision of this section, the Secretary shall

24 have the discretion to decide whether to establish the Advi25 sory Board or create a more cost-effective way to achieve
110

•HR 820 RFS

1 the goal of closer cooperation with industry. If the Sec2 retary exercises such discretion and establishes an alter3 native mechanism, the Under Secretary shall make an ef4 fort to ensure the participation of socially and economi5 cally disadvantaged individuals (within the meaning of sec6 tion 8(a)(5) and (6) of the Small Business Act, and in7 cluding women) in the alternative mechanism.

8 SEC. 402. INTERNATIONAL STANDARDIZATION.

9 (a) FINDINGS.—The Congress finds that—

10 (1) private sector consensus standards are es11 sential to the timely development of competitive

12 products;

13 (2) Federal Government contribution of re14 sources and more active participation in the vol15 untary standards process in the United States can

16 increase the quality of United States standards, in17 crease their compatibility with the standards of

18 other countries, and ease access of products manu19 factured by United States manufacturers to foreign

20 markets; and

21 (3) the Federal Government, working in co22 operation with private sector organizations including

23 trade associations, engineering societies, and tech24 nical bodies, can effectively promote United States

25 Government use of United States consensus stand-
111

•HR 820 RFS

1 ards and, where appropriate, the adoption and

2 United States Government use of international

3 standards.

4 (b) STANDARD PILOT PROGRAM.—Section 104(e) of

5 the American Technology Preeminence Act of 1991 is

6 amended—

7 (1) by inserting ‘‘(1)’’ before ‘‘Pursuant to

8 the’’;

9 (2) by striking ‘‘matching funds’’ and inserting

10 in lieu thereof ‘‘financial contributions deemed ap11 propriate by the Secretary’’; and

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

13 paragraph:

14 ‘‘(2) As necessary and appropriate, the Institute shall

15 expand the program established under section 112 of the

16 National Institute of Standards and Technology Author17 ization Act for Fiscal Year 1989 (15 U.S.C. 272 note)

18 by extending the existing program to include other coun19 tries that request assistance with standards-related activi20 ties from official representatives of the United States Gov21 ernment. The Institute may enter into additional contracts

22 with non-Federal organizations representing United

23 States companies, as such term is defined in section

24 28(d)(9)(B) of the National Institute of Standards and

25 Technology Act (15 U.S.C. 278n(d)(9)(B)) or with United
112

•HR 820 RFS

1 States-based professional societies who participate in the

2 development of standards. Such contracts shall require

3 cost sharing between Federal and non-Federal sources for

4 such purposes. In awarding such contracts, the Institute

5 shall seek to promote and support the dissemination of

6 United States technical standards to additional foreign

7 countries and shall seek, as the Director deems appro8 priate, to promote the adoption of international standards

9 supported by United States industry, and shall seek to as10 sist private sector professional societies which participate

11 in the development of standards in expediting the develop12 ment of domestic standards which enable the introduction

13 of technologies, products, or technology-based services

14 which are being delayed due to the lack of available stand15 ards. The Institute and such contractors shall, in carrying

16 out the preceding sentence, cooperate with governmental

17 bodies, private organizations including standards setting

18 organizations and industry, and multinational institutions

19 that promote economic development. The organizations re20 ceiving such contracts may establish training programs to

21 bring to the United States foreign standards experts for

22 the purpose of receiving in-depth training in the United

23 States standards system.’’.
113

•HR 820 RFS

1 (c) REPORT ON STANDARDS.—(1) Section 508(a) of

2 the American Technology Preeminence Act of 1991 (15

3 U.S.C. 3701 note) is amended—

4 (A) by inserting ‘‘standards development and

5 international’’ after ‘‘a thorough review of inter6 national’’;

7 (B) by redesignating paragraphs (1) through

8 (5) as paragraphs (2) through (6), respectively; and

9 (C) by inserting before paragraph (2), as so re10 designated by subparagraph (B) of this paragraph,

11 the following new paragraph:

12 ‘‘(1) Current and potential future roles of the

13 Federal Government in the development and promul14 gation of domestic and global product and process

15 standards.’’.

16 (2) The Secretary, in consultation with the Institute

17 and the Department of Commerce Technology Advisory

18 Board established under section 401 of this Act and with,

19 as appropriate, the active participation of the private sec20 tor, shall submit to the Congress a report describing the

21 appropriate roles of the Department of Commerce in aid

22 to United States companies in achieving conformity as23 sessment and accreditation and otherwise qualifying their

24 products in foreign markets, through the development and

25 promulgation of domestic and global product and quality
114

•HR 820 RFS

1 standards, and through the implementation of conformity

2 assessment and accreditation procedures based upon such

3 standards, including a discussion of the extent to which

4 each of the policy options provided in the March 1992 Of5 fice of Technology Assessment report, entitled ‘‘Global

6 Standards’’, contributes to meeting the goals of—

7 (A) increasing the international adoption of

8 standards beneficial to United States industries; and

9 (B) improving the coordination of United States

10 representation to international standards setting

11 bodies.

12 (3) The report shall also describe emerging product

13 and market areas which can be assisted by shortening the

14 time required for the development of standards and make

15 recommendations on contributions the Department of

16 Commerce can make to improving the timeliness of stand17 ards development.

18 SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.

19 (a) Section 108(c)(3) of the Stevenson-Wydler Tech20 nology Innovation Act of 1980, as so redesignated by sec21 tion 206(b)(3) of this Act, is amended to read as follows:

22 ‘‘(3) No award shall be made within any category or

23 subcategory if there are no qualifying enterprises in that

24 category or subcategory.’’.
115

•HR 820 RFS

1 (b)(1) Section 108(c)(1) of the Stevenson-Wydler

2 Technology Innovation Act of 1980, as so redesignated by

3 section 206(b)(3) of this Act, is amended by adding at

4 the end the following new subparagraph:

5 ‘‘(D) Educational institutions.’’.

6 (2)(A) Within 1 year after the date of enactment of

7 this Act, the Secretary shall submit to the Congress a re8 port containing—

9 (i) criteria for qualification for a Malcolm

10 Baldrige National Quality Award by various classes

11 of educational institutions;

12 (ii) criteria for the evaluation of applications for

13 such awards under section 108(d)(1) of the Steven14 son-Wydler Technology Innovation Act of 1980, as

15 so redesignated by section 206(b)(3) of this Act; and

16 (iii) a plan for funding awards described in

17 clause (i).

18 (B) In preparing the report required under subpara19 graph (A), the Secretary shall consult with the National

20 Science Foundation and other public and private entities

21 with appropriate expertise, and shall provide for public no22 tice and comment.

23 (C) The Secretary shall not accept applications for

24 awards described in subparagraph (A)(i) until after the
116

•HR 820 RFS

1 report required under subparagraph (A) is submitted to

2 the Congress.

3 SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT

4 AGREEMENTS.

5 Section 202 of the Stevenson-Wydler Technology In6 novation Act of 1980 (15 U.S.C. 3710a), as redesignated

7 by section 206(b)(5) of this Act, is amended—

8 (1) in subsection (d)(1), by inserting ‘‘(includ9 ing both real and personal property)’’ after ‘‘or

10 other resources’’ both places it appears; and

11 (2) in subsection (d)(2)(A), by inserting ‘‘in12 cluding Federal test and evaluation facilities,’’ after

13 ‘‘by a Federal agency,’’.

14 SEC. 405. COMPETITIVENESS ASSESSMENTS AND EVALUA15 TIONS.

16 Section 101(e) of the Stevenson-Wydler Technology

17 Innovation Act of 1980, as so redesignated by section

18 206(b)(2) of this Act, is amended to read as follows:

19 ‘‘(e) COMPETITIVENESS ASSESSMENTS AND EVALUA20 TIONS.—(1) The Secretary, through the Under Secretary,

21 shall—

22 ‘‘(A) provide for the conduct of research and

23 analyses to advance knowledge of the ways in which

24 the economic competitiveness of United States com25 panies can be enhanced through Federal programs
117

•HR 820 RFS

1 established under the National Competitiveness Act

2 of 1993 or the amendments made by that Act; and

3 ‘‘(B) as appropriate, provide for evaluations of

4 Federal technology programs established or ex5 panded under the National Competitiveness Act of

6 1993 or the amendments made by that Act in order

7 to judge their effectiveness and make recommenda8 tions to improve their contribution to United States

9 competitiveness.

10 ‘‘(2) All executive departments and agencies shall as11 sist the Secretary in carrying out this section as appro12 priate.

13 ‘‘(3) Nothing in this section shall authorize the re14 lease of information to, or the use of information by, the

15 Secretary or Under Secretary in a manner inconsistent

16 with law or any procedure established pursuant thereto.

17 ‘‘(4) The head of any Federal agency may detail such

18 personnel and may provide such services, with or without

19 reimbursement, as the Secretary may request to assist in

20 carrying out the activities required under this section.’’.

21 SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY

22 TECHNOLOGIES.

23 Within 9 months after the date of enactment of this

24 Act, the Critical Technologies Institute (in this section re25 ferred to as the ‘‘Institute’’) established under section 822
118

•HR 820 RFS

1 of the National Defense Authorization Act for Fiscal Year

2 1991 shall, after consultation with the private sector and

3 appropriate officials from other Federal agencies, submit

4 to Congress a report on advanced lithography technologies

5 for the production of semiconductor devices. The report

6 shall include the Institute’s evaluation of the likely tech7 nical and economic advantages and disadvantages of each

8 such technology, an analysis of current private and Gov9 ernment research to develop each such technology, and

10 any recommendations the Institute may have regarding

11 future Federal support for research and development in

12 advanced lithography.

13 SEC. 407. AMERICAN WORKFORCE QUALITY PARTNER14 SHIPS.

15 (a) AMENDMENT.—Title III of the Stevenson-Wydler

16 Technology Innovation Act of 1980, as added by title II

17 of this Act, is further amended by adding at the end the

18 following new section:

19 ‘‘SEC. 305. AMERICAN WORKFORCE QUALITY PARTNER20 SHIPS.

21 ‘‘(a) PROGRAM AUTHORIZED.—The Secretary may

22 make grants to establish and operate American workforce

23 quality partnership programs in accordance with the pro24 visions of this section. The Secretary shall award grants

25 on a competitive basis to pay the Federal share for Amer-
119

•HR 820 RFS

1 ican workforce quality partnership programs to establish

2 workforce training consortia between industry and institu3 tions of higher education.

4 ‘‘(b) GRANT PERIOD.—Grants awarded under this

5 section may be for a period of 5 years.

6 ‘‘(c) GENERAL AUTHORITY.—Each grant recipient

7 shall use amounts provided under the grant to develop and

8 operate an American workforce quality partnership pro9 gram.

10 ‘‘(d) CONTENTS OF PROGRAM.—An American

11 workforce quality partnership program shall establish

12 partnerships among—

13 ‘‘(1) one or more United States manufacturers;

14 ‘‘(2) an organization or organizations represent15 ing the nonmanagerial employees of the manufactur16 ers described in paragraph (1); and

17 ‘‘(3) a local community technical college or

18 other appropriate institutions of higher education, a

19 vocational training institution, a Regional Center for

20 the Transfer of Manufacturing Technology, a Manu21 facturing Outreach Center, or any similar entity or

22 consortium of such institutions,

23 to train the employees of the industrial partners through

24 both workplace-based and classroom-based programs of

25 training.
120

•HR 820 RFS

1 ‘‘(e) FEDERAL SHARE.—The Federal share of the

2 cost of an American workforce quality partnership pro3 gram may not exceed 50 percent of the total cost of the

4 program. The non-Federal share of such costs may be pro5 vided in-cash or in-kind, fairly valued. The total contribu6 tion of the proposed partnership should reflect a substan7 tial contribution on the part of the industrial partners and

8 appropriate contributions of the education partners, local

9 or State governments, and other appropriate entities.

10 ‘‘(f) APPLICATIONS.—

11 ‘‘(1) ELIGIBILITY.—Any consortium described

12 in subsection (d) may apply for a grant under this

13 section at such time and in such manner as the Sec14 retary shall prescribe.

15 ‘‘(2) PLAN.—Each application submitted under

16 this subsection shall contain a plan for the develop17 ment and implementation of an American workforce

18 quality partnership program under this section.

19 Such plan shall—

20 ‘‘(A) show a demonstrated commitment, on

21 the part of the industrial partners, to adopt

22 total quality management strategies or other

23 plausible strategies to renew its competitive

24 edge;
121

•HR 820 RFS

1 ‘‘(B) demonstrate the need for Federal re2 sources because of the long-term nature and

3 risk of such an investment, the inability to fi4 nance such ventures because of the high cost of

5 capitalization, intense competition from foreign

6 industries, or such other appropriate reasons as

7 may limit the industrial partners’ ability to

8 launch programs where worker training and de9 velopment is a substantial component;

10 ‘‘(C) demonstrate long-term benefit for all

11 partners and the local economy, through an en12 hanced competitive position of the industrial

13 partners, substantial benefits for regional em14 ployment, and the ability of the education and

15 labor participants to further their capabilities to

16 educate and train other nonpartnership-affili17 ated individuals wishing to obtain or upgrade

18 technical, technological, industrial management

19 and leadership, or other industrial skills;

20 ‘‘(D) make full, appropriate, and innova21 tive use of industrial and higher education re22 sources and other local resources such as facili23 ties, equipment, personnel exchanges, experts,

24 or consultants;
122

•HR 820 RFS

1 ‘‘(E) provide for the establishment of an

2 advisory board in accordance with subsection

3 (h);

4 ‘‘(F) include an explanation of the indus5 trial partners’ plans to adopt new competitive

6 strategies and how the training partnership aids

7 that effort; and

8 ‘‘(G) include assurances that the eligible

9 entity will maintain its aggregate expenditures

10 from all sources for employee training, other

11 than those provided under this section, at or

12 above the average level of such expenditures in

13 the 2 fiscal years preceding submission of an

14 application for assistance under this section.

15 ‘‘(3) APPROVAL.—

16 ‘‘(A) IN GENERAL.—The Secretary shall

17 approve applications based on their potential to

18 create an effective American workforce quality

19 partnership program in accordance with this

20 section.

21 ‘‘(B) CRITERIA.—In reviewing grant appli22 cations, the Secretary shall give significant con23 sideration to the following criteria:

24 ‘‘(i) Saliency of argument for requir25 ing a Federal investment.
123

•HR 820 RFS

1 ‘‘(ii) Commitment of partnership to

2 continue operation after the termination of

3 Federal funding.

4 ‘‘(iii) The likelihood that the training

5 will improve the long-term competitiveness

6 of the industrial partners and contribute

7 significantly to economic growth.

8 ‘‘(iv) The likelihood that the partner9 ship will benefit the education mission of

10 the education partners in ways outside of

11 the scope of the partnership, such as devel12 oping the capability to train other

13 nonpartnership-affiliated individuals in

14 similar skills.

15 ‘‘(C) PRIORITY CONSIDERATION.—The

16 Secretary shall give priority consideration to in17 dustries which are threatened by intense foreign

18 competition important to the long-term national

19 economic or military security of the United

20 States and industries which are critical in ena21 bling other United States industries to maintain

22 a healthy competitive position. In addition, the

23 Secretary shall give priority to applicants in

24 areas of high poverty and unemployment.

25 ‘‘(g) USE OF FUNDS.—
124

•HR 820 RFS

1 ‘‘(1) APPROVED USES.—Federal funds may be

2 used for—

3 ‘‘(A) the direct costs of workplace-based

4 and classroom-based training in advanced tech5 nical, technological, and industrial management,

6 skills, and training for the implementation of

7 total quality management and technology man8 agement strategies, or other competitiveness

9 strategies, contained in the applicant’s plan

10 submitted under subsection (f)(2)(F);

11 ‘‘(B) the purchase or lease of equipment or

12 other materials for the purpose of instruction to

13 aid in training;

14 ‘‘(C) the development of in-house curricula

15 or coursework or other training-related pro16 grams, including the training of teachers and

17 other eligible participants to utilize such curric18 ula or coursework; and

19 ‘‘(D) reasonable administrative expenses

20 and other indirect costs of operating the part21 nership which may not exceed 10 percent of the

22 total cost of the program.

23 ‘‘(2) LIMITATIONS.—Federal funds may not be

24 used for nontraining related costs of adopting new

25 competitive strategies including the replacement of
125

•HR 820 RFS

1 manufacturing equipment, product redesign and

2 manufacturing facility construction costs, or salary

3 compensation of the partners’ employees. Grants

4 shall not be made under this section for programs

5 that will impair any existing program, contract, or

6 agreement without the written concurrence of the

7 parties to such program, contract, or agreement.

8 ‘‘(h) ADVISORY BOARD.—

9 ‘‘(1) Each partnership shall establish an advi10 sory board which shall include representation from

11 each of the following categories:

12 ‘‘(A) Multiple organizational levels of the

13 industrial partners, that shall include manage14 rial employees.

15 ‘‘(B) The education partners.

16 ‘‘(C) Organizations representing

17 nonmanagerial employees.

18 ‘‘(2) The advisory board shall—

19 ‘‘(A) advise the partnership on the general

20 direction and policy of the partnership including

21 training, instruction, and other related issues;

22 ‘‘(B) report to the Secretary after the sec23 ond and fourth year of the program, on the

24 progress and status of the partnership, includ25 ing its strengths, weaknesses, and new direc-
126

•HR 820 RFS

1 tions, the number of individuals served, types of

2 services provided, and an outline of how the

3 program can be integrated into the existing

4 training infrastructure in place in other Federal

5 agencies and departments; and

6 ‘‘(C) assist in the revision of the plans

7 (submitted with the application under sub8 section (f)(2)(F)) and include revised plans as

9 necessary in the reports required under sub10 paragraph (B).’’.

11 (b) EFFECTIVE DATE.—The amendment made by

12 subsection (a) shall take effect on October 1, 1994.

13 SEC. 408. SEVERABILITY.

14 If any provision of this Act or the amendments made

15 by this Act, or the application thereof to any person or

16 circumstance, is held invalid, the remainder of this Act

17 and the amendments made by this Act, and the applica18 tion thereof to other persons or circumstances, shall not

19 be affected thereby.

20 SEC. 409. SUNSET.

21 (a) REPORT TO CONGRESS.—Before April 1, 1995,

22 the Secretary shall submit to the Congress a report that

23 evaluates the success of the programs established by this

24 Act, and the amendments made by this Act, in achieving

25 the purposes of this Act.
127

•HR 820 RFS

1 (b) LIMITATION ON APPROPRIATIONS.—Notwith2 standing any other provision of this Act, no funds are au3 thorized to be appropriated for any fiscal year after fiscal

4 year 1995 for carrying out the programs for which funds

5 are authorized by this Act, or the amendments made by

6 this Act.

7 SEC. 410. USE OF DOMESTIC PRODUCTS.

8 (a) PROHIBITION AGAINST FRAUDULENT USE OF

9 ‘‘MADE IN AMERICA’’ LABELS.—(1) A person shall not

10 intentionally affix a label bearing the inscription of ‘‘Made

11 in America’’, or any inscription with that meaning, to any

12 product sold in or shipped to the United States, if that

13 product is not a domestic product.

14 (2) A person who violates paragraph (1) shall not be

15 eligible for any contract for a procurement carried out

16 with amounts authorized under this Act, or under any

17 amendment made by this Act, including any subcontract

18 under such a contract pursuant to the debarment, suspen19 sion, and ineligibility procedures in subpart 9.4 of chapter

20 1 of title 48, Code of Federal Regulations, or any succes21 sor procedures thereto.

22 (b) COMPLIANCE WITH BUY AMERICAN ACT.—(1)

23 Except as provided in paragraph (2), the head of each

24 agency which conducts procurements shall ensure that

25 such procurements are conducted in compliance with sec-
128

•HR 820 RFS

1 tions 2 through 4 of the Act of March 3, 1933 (41 U.S.C.

2 10a through 10c, popularly known as the ‘‘Buy American

3 Act’’).

4 (2) This subsection shall apply only to procurements

5 made for which—

6 (A) amounts are authorized by this Act, or by

7 any amendment made by this Act, to be made avail8 able; and

9 (B) solicitations for bids are issued after the

10 date of enactment of this Act.

11 (3) The Secretary, before January 1, 1995, shall re12 port to the Congress on procurements covered under this

13 subsection of products that are not domestic products.

14 (c) PURCHASE OF AMERICAN MADE EQUIPMENT AND

15 PRODUCTS.—

16 (1) SENSE OF CONGRESS.—It is the sense of

17 Congress that any recipient of a grant under this

18 Act, or under any amendment made by this Act,

19 should purchase only American made equipment and

20 products when expending grant monies.

21 (2) NOTICE TO RECIPIENTS OF ASSISTANCE.—

22 In allocating grants under this Act, or under any

23 amendment made by this Act, the Secretary shall

24 provide to each recipient a notice describing the

25 statement made in paragraph (1) by the Congress.
129

•HR 820 RFS

1 (d) DEFINITIONS.—For the purposes of this section,

2 the term ‘‘domestic product’’ means a product—

3 (1) that is manufactured or produced in the

4 United States; and

5 (2) at least 50 percent of the cost of the arti6 cles, materials, or supplies of which are mined, pro7 duced, or manufactured in the United States.

8 SEC. 411. NATIONAL QUALITY PROGRAM.

9 (a) ESTABLISHMENT.—There is established, under

10 the supervision of the Director, a National Quality Pro11 gram (in this section referred to as the ‘‘Program’’). The

12 purpose of the Program shall be to enhance the Malcolm

13 Baldrige National Quality Award, to disseminate informa14 tion, and to promote and take part in educational and re15 search activities regarding ways in which United States

16 companies and organizations can improve their quality

17 management practices and productivity.

18 (b) ACTIVITIES.—As part of the Program, the Direc19 tor is authorized—

20 (1) to develop industry-led workshops, semi21 nars, and other mechanisms to disseminate broadly

22 to United States companies and organizations the

23 best practices available in total quality management,

24 including the practices and quality improvement

25 strategies successfully employed by those firms that
130

•HR 820 RFS

1 have won the Malcolm Baldrige National Quality

2 Award, as well as best practices in lean production

3 methods, market-driven product improvement, and

4 customer-supplier relations;

5 (2) to work with industry leaders and others to

6 develop both measures of quality and recommenda7 tions concerning what skills employees should have

8 in order to participate effectively in company quality

9 programs; and

10 (3) to explore, with private industry, other Fed11 eral agencies, and State and local government, inno12 vative ways in which 2-year colleges and other edu13 cational institutions can teach quality assurance

14 techniques and related background skills to indus15 trial workers in both manufacturing and services.

16 SEC. 412. DEFINITIONS.

17 Title III of the Stevenson-Wydler Technology Innova18 tion Act of 1980, as added by title II and section 407

19 of this Act, is further amended by adding at the end the

20 following new section:

21 ‘‘SEC. 306. DEFINITIONS.

22 ‘‘For purposes of this title and title IV—

23 ‘‘(1) the term ‘State’ means each of the several

24 States, the District of Columbia, the Commonwealth

25 of Puerto Rico, the Virgin Islands, Guam, American
131

•HR 820 RFS

1 Samoa, the Commonwealth of the Northern Mariana

2 Islands, and any other territory or possession of the

3 United States; and

4 ‘‘(2) the term ‘United States’ means the several

5 States, the District of Columbia, the Commonwealth

6 of Puerto Rico, the Virgin Islands, Guam, American

7 Samoa, the Commonwealth of the Northern Mariana

8 Islands, and any other territory or possession of the

9 United States.’’.

10 SEC. 413. FASTENER QUALITY ACT AMENDMENTS.

11 (a) REFERENCES.—Whenever in this section an

12 amendment is expressed in terms of an amendment to a

13 section or other provision, the reference shall be consid14 ered to be made to a section or other provision of the Fas15 tener Quality Act (15 U.S.C. 5401 et seq.).

16 (b) TECHNICAL AMENDMENTS.—

17 (1) DEFINITIONS.—Section 3 (15 U.S.C. 5402)

18 is amended—

19 (A) in paragraph (8), by striking ‘‘Stand20 ard’’ and inserting in lieu thereof ‘‘Standards’’;

21 and

22 (B) in paragraph (14), by striking ‘‘which

23 defines or describes’’ and all that follows

24 through ‘‘of any fastener’’.
132

•HR 820 RFS

1 (2) INSPECTION AND TESTING.—Section

2 5(b)(1) (15 U.S.C. 5404(b)(1)) is amended by strik3 ing ‘‘section 6; unless’’ and inserting in lieu thereof

4 ‘‘section 6, unless’’.

5 (3) IMPORTERS AND PRIVATE LABEL DISTRIBU6 TORS.—Section 7(c)(2) (15 U.S.C. 5406(c)(2)) is

7 amended by inserting ‘‘to the same’’ before ‘‘extent’’.

8 (c) CLARIFYING AMENDMENTS.—

9 (1) CHEMICAL TESTS.—(A) Section 5(a)(1)(B)

10 (15 U.S.C. 5404(a)(1)(B)) is amended by striking

11 ‘‘subsections (b) and (c)’’ and inserting in lieu there12 of ‘‘subsections (b), (c), and (d)’’.

13 (B) Section 5(a)(2)(A)(i) (15 U.S.C.

14 5404(a)(2)(A)(i)) is amended by striking ‘‘sub15 sections (b) and (c)’’ and inserting in lieu thereof

16 ‘‘subsections (b), (c), and (d)’’.

17 (C) Section 5(c)(4) (15 U.S.C. 5404(c)(4)) is

18 amended by inserting ‘‘except as provided in sub19 section (d),’’ before ‘‘state’’.

20 (D) Section 5 (15 U.S.C. 5404) is amended by

21 inserting at the end the following new subsection:

22 ‘‘(d) ALTERNATIVE PROCEDURE FOR CHEMICAL

23 CHARACTERISTICS.—Notwithstanding the requirements of

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

25 to have demonstrated, for purposes of subsection (a)(1),
133

•HR 820 RFS

1 that the chemical characteristics of a lot conform to the

2 standards and specifications to which the manufacturer

3 represents such lot has been manufactured if the following

4 requirements are met:

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

6 which such lot was fabricated has been inspected

7 and tested with respect to its chemical characteris8 tics by a laboratory accredited in accordance with

9 the procedures and conditions specified by the Sec10 retary under section 6.

11 ‘‘(2) Such laboratory has provided to the manu12 facturer, either directly or through the metal manu13 facturer, a written inspection and testing report,

14 which shall be in a form prescribed by the Secretary

15 by regulation, listing the chemical characteristics of

16 such coil or heat number.

17 ‘‘(3) The report described in paragraph (2) in18 dicates that the chemical characteristics of such coil

19 or heat number conform to those required by the

20 standards and specifications to which the manufac21 turer represents such lot has been manufactured.

22 ‘‘(4) The manufacturer demonstrates that such

23 lot has been fabricated from the coil or heat number

24 of metal to which the report described in paragraphs

25 (2) and (3) relates.
134

•HR 820 RFS

1 In prescribing the form of report required by subsection

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

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

4 statement pertains to chemical characteristics, for cases

5 in which a manufacturer elects to use the procedure per6 mitted by this subsection.’’.

7 TITLE V—AUTHORIZATIONS OF

8 APPROPRIATIONS

9 SEC. 501. TECHNOLOGY ADMINISTRATION.

10 There are authorized to be appropriated to the Sec11 retary, to carry out the activities of the Under Secretary

12 and the Assistant Secretary of Commerce for Technology

13 Policy, in addition to any other amounts authorized for

14 such purposes, for the Office of the Under Secretary—

15 (1) $5,425,000 for fiscal year 1994; and

16 (2) $10,000,000 for fiscal year 1995, of which

17 $2,000,000 are authorized for competitiveness as18 sessments and evaluations under section 101(e) of

19 the Stevenson-Wydler Technology Innovation Act of

20 1980, as so redesignated by section 206(b)(2) of this

21 Act.

22 SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECH23 NOLOGY.

24 (a) INTRAMURAL SCIENTIFIC AND TECHNICAL RE25 SEARCH AND SERVICES.—(1) There are authorized to be
135

•HR 820 RFS

1 appropriated to the Secretary, to carry out the intramural

2 scientific and technical research and services activities of

3 the Institute, $242,988,000 for fiscal year 1994 and

4 $300,000,000 for fiscal year 1995.

5 (2) Of the amounts authorized under paragraph

6 (1)—

7 (A) $1,000,000 for fiscal year 1994 and

8 $1,000,000 for fiscal year 1995 are authorized only

9 for the evaluation of nonenergy-related inventions;

10 (B) $9,000,000 for fiscal year 1994 and

11 $10,000,000 for fiscal year 1995 are authorized only

12 for the technical competence fund; and

13 (C) $2,000,000 for fiscal year 1994 and

14 $3,000,000 for fiscal year 1995 are authorized only

15 for the standards pilot project established under sec16 tion 104(e) of the American Technology Pre17 eminence Act of 1991.

18 (b) TRANSFERS.—(1) Funds may be transferred

19 among the line items listed in subsection (a), so long as—

20 (A) the net funds transferred to or from any

21 line item do not exceed 10 percent of the amount

22 authorized for that line item in such subsection;

23 (B) the aggregate amount authorized under

24 subsection (a) is not changed; and
136

•HR 820 RFS

1 (C) the Committee on Commerce, Science, and

2 Transportation of the Senate and the Committee on

3 Science, Space, and Technology of the House of

4 Representatives are notified in advance of any such

5 transfer.

6 (2) The Secretary may propose transfers to or from

7 any line item listed in subsection (a) exceeding 10 percent

8 of the amount authorized for such line item, but such pro9 posed transfer may not be made unless—

10 (A) a full and complete explanation of any such

11 proposed transfer and the reason therefor are trans12 mitted in writing to the Speaker of the House of

13 Representatives, the President of the Senate, and

14 the appropriate authorizing Committees of the

15 House of Representatives and the Senate; and

16 (B) 30 days have passed following the trans17 mission of such written explanation.

18 (c) FACILITIES CONSTRUCTION.—There are author19 ized to be appropriated to the Secretary, to carry out con20 struction and modernization of Institute facilities,

21 $61,686,000 for fiscal year 1994 and $106,000,000 for

22 fiscal year 1995.
137

•HR 820 RFS

1 SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY

2 ADMINISTRATION.

3 (a) FISCAL YEAR 1994.—In addition to the amounts

4 authorized under sections 501 and 502, there are author5 ized to be appropriated to the Secretary for fiscal year

6 1994—

7 (1) for Regional Centers for the Transfer of

8 Manufacturing Technology, for the National Tech9 nology Outreach Program established under section

10 303 of the Stevenson-Wydler Technology Innovation

11 Act of 1980, and for the National Quality Program

12 established under section 410 of this Act,

13 $30,035,000;

14 (2) for the State Technology Extension Pro15 gram, $3,000,000;

16 (3) for the Advanced Technology Program

17 $193,489,000, of which $20,000,000 is authorized

18 for the Advanced Manufacturing Technology Devel19 opment Program established under section 304 of

20 the Stevenson-Wydler Technology Innovation Act of

21 1980;

22 (4) for the Civilian Technology Loan Program

23 established under subtitle C of title III of this Act,

24 $1,000,000;
138

•HR 820 RFS

1 (5) for the Civilian Technologies Development

2 Program established under subtitle D of title III of

3 this Act, $1,000,000; and

4 (6) for carrying out the Benchmarking Pro5 gram established under title IV of the Stevenson6 Wydler Technology Innovation Act of 1980,

7 $2,000,000.

8 (b) FISCAL YEAR 1995.—In addition to the amounts

9 authorized under subsection (a), there are authorized to

10 be appropriated to the Secretary for fiscal year 1995, to

11 carry out the other activities of the Technology Adminis12 tration, including the extramural industrial technology

13 services activities of the Institute and the Advanced Tech14 nology Program, $534,000,000, of which—

15 (1) not more than $150,000,000 shall be for

16 the Regional Centers for the Transfer of Manufac17 turing Technology and the National Technology

18 Outreach Program established under section 303 of

19 the Stevenson-Wydler Technology Innovation Act of

20 1980;

21 (2) not more than $3,000,000 shall be for the

22 National Quality Program established under section

23 410 of this Act;

24 (3) not more than $3,000,000 shall be for the

25 State Technology Extension Program;
139

•HR 820 RFS

1 (4) not more than $50,000,000 shall be for the

2 Advanced Manufacturing Technology Development

3 Program established under section 304 of the Ste4 venson-Wydler Technology Innovation Act of 1980;

5 (5) not more than $20,000,000 shall be for the

6 Civilian Technology Loan Program established under

7 subtitle C of title III of this Act;

8 (6) not more than $50,000,000 shall be for the

9 Civilian Technologies Development Program estab10 lished under subtitle D of title III of this Act;

11 (7) not more than $10,000,000 shall be for car12 rying out the Benchmarking Program established

13 under title IV of the Stevenson-Wydler Technology

14 Innovation Act of 1980; and

15 (8) not more than $50,000,000 shall be for car16 rying out the American workforce quality partner17 ship program established under section 305 of the

18 Stevenson-Wydler Technology Innovation Act of

19 1980.

20 (c) ADMINISTRATIVE EXPENSES; AUDITS.—Of the

21 amounts made available under subsection (a)(4), not more

22 than $2,000,000 or 10 percent, whichever is greater, shall

23 be available for administrative expenses. Of the amounts

24 made available under subsection (b)(5), not more than

25 $5,000,000 or 10 percent, whichever is greater, shall be
140

•HR 820 RFS

1 available for administrative expenses. The Secretary shall

2 ensure that audits are performed by independent auditors

3 on the programs for which funds are appropriated pursu4 ant to this section. The summary results of such audits

5 shall be submitted to the Congress by the end of each of

6 the fiscal years 1994 and 1995, and not more than

7 $2,000,000, or 2 percent of the aggregate amount made

8 available under such section and subsection, whichever is

9 greater, shall be used in each such fiscal year for perform10 ing the audits.

11 SEC. 504. NATIONAL SCIENCE FOUNDATION.

12 In addition to such other sums as may be authorized

13 by other Acts to be appropriated to the Director of the

14 National Science Foundation, there are authorized to be

15 appropriated to that Director—

16 (1) for carrying out section 212 of this Act,

17 $20,000,000 for fiscal year 1995; and

18 (2) for carrying out section 213 of this Act,

19 $30,000,000 for fiscal year 1995.

20 SEC. 505. AVAILABILITY OF APPROPRIATIONS.

21 Except as otherwise provided in this title, appropria22 tions made under the authority provided in this title shall

23 remain available for obligation until expended.
141

•HR 820 RFS

1 SEC. 506. PROHIBITIONS.

2 None of the funds made available in this Act may

3 be used to provide any direct Federal financial benefit to

4 any person who is not (1) a citizen or national of the Unit5 ed States; (2) an alien lawfully admitted for permanent

6 residence; or (3) an alien granted legal status as a parolee,

7 asylee, or refugee.

Passed the House of Representatives May 19, 1993.

Attest: DONNALD K. ANDERSON,

Clerk.

HR 820 RFS——2

HR 820 RFS——3

HR 820 RFS——4

HR 820 RFS——5

HR 820 RFS——6

HR 820 RFS——7

HR 820 RFS——8

HR 820 RFS——9

HR 820 RFS——10