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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 820 Committee Discharged Senate (CDS)]

103d CONGRESS
  2d Session
                                H. R. 820

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                May 24 (legislative day, April 19), 1993

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

             March 16 (legislative day, February 22), 1994

                          Committee discharged

_______________________________________________________________________

                                 AN ACT

 
  To amend the Stevenson-Wydler Technology Innovation Act of 1980 to 
enhance manufacturing technology development and transfer, to authorize 
 appropriations for the Technology Administration of the Department of 
Commerce, including the National Institute of Standards and Technology, 
                        and for other purposes.

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

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National 
Competitiveness Act of 1993''.
    (b) Table of Contents.--

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Short title; table of contents.
Sec. 102. Findings.
Sec. 103. Purposes.
Sec. 104. Definitions.
                        TITLE II--MANUFACTURING

           Subtitle A--Manufacturing Technology and Extension

Sec. 201. Short title.
Sec. 202. Findings, purpose, and statement of policy.
Sec. 203. Role of the Department of Commerce.
Sec. 204. National Technology Outreach Program.
Sec. 205. Advanced Manufacturing Technology Development Program.
Sec. 206. Miscellaneous and conforming amendments.
Sec. 207. Manufacturing Technology Centers.
Sec. 208. State Technology Extension Program.
     Subtitle B--National Science Foundation Manufacturing Programs

Sec. 211. Role of the National Science Foundation in manufacturing.
Sec. 212. Engineering and Cooperative Research Centers.
Sec. 213. Manufacturing traineeships and fellowships.
Sec. 214. Total quality management.
                    TITLE III--CRITICAL TECHNOLOGIES

            Subtitle A--Benchmarking Science and Technology

Sec. 301. Benchmarking United States science and technology against 
                            foreign capabilities.
                Subtitle B--Advanced Technology Program

Sec. 321. Development of program plan.
Sec. 322. Large scale research and development consortia.
Sec. 323. Technical amendments.
Sec. 324. Country qualification notice.
Sec. 325. Recoupment.
              Subtitle C--Civilian Technology Loan Program

Sec. 331. Loan and loan guarantee authority.
Sec. 332. Operating plan and effective date.
Sec. 333. Terms and conditions.
Sec. 334. Technical assistance for lenders and borrowers.
Sec. 335. Outreach to economically depressed areas.
Sec. 336. Socially and economically disadvantaged individuals.
Sec. 337. Definitions.
          Subtitle D--Civilian Technology Development Program

Sec. 341. Short title.
Sec. 342. Definitions.
Sec. 343. Establishment and purpose.
Sec. 344. Advisory Committee.
Sec. 345. Organization and licensing.
Sec. 346. Capital and management requirements.
Sec. 347. Financing for licensees.
Sec. 348. Issuance and guarantee of trust certificates.
Sec. 349. Venture capital for qualified business concerns.
Sec. 350. Operation.
Sec. 351. Regulations; liability.
Sec. 352. Technical assistance for licensees and qualified business 
                            concerns.
Sec. 353. Performance measures; Annual report.
Sec. 354. Reports, investigations, and examinations.
Sec. 355. Revocation and suspension of licenses; cease and desist 
                            orders.
Sec. 356. Injunctive relief.
Sec. 357. Conflicts of interest.
Sec. 358. Removal or suspension of directors and officers.
Sec. 359. Violations.
Sec. 360. Civil penalties.
Sec. 361. Antitrust savings clause.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Department of Commerce Technology Advisory Board.
Sec. 402. International standardization.
Sec. 403. Malcolm Baldrige Award amendments.
Sec. 404. Cooperative research and development agreements.
Sec. 405. Competitiveness assessments and evaluations.
Sec. 406. Study of semiconductor lithography technologies.
Sec. 407. American workforce quality partnerships.
Sec. 408. Severability.
Sec. 409. Sunset.
Sec. 410. Use of domestic products.
Sec. 411. National Quality Program.
Sec. 412. Definitions.
Sec. 413. Fastener Quality Act amendments.
               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

Sec. 501. Technology Administration.
Sec. 502. National Institute of Standards and Technology.
Sec. 503. Additional activities of the Technology Administration.
Sec. 504. National Science Foundation.
Sec. 505. Availability of appropriations.
Sec. 506. Prohibitions.

SEC. 102. FINDINGS.

    The Congress finds that--
            (1) the creation, development, and adoption of advanced 
        technologies are significant determinants of sustainable 
        economic growth, productivity improvement, and competitive 
        standing;
            (2) over the last decade, the rate of advanced technology 
        adoption in the United States has been about half that of some 
        prominent foreign nations and has contributed to a relative 
        decline in United States industrial competitiveness;
            (3) maintaining a highly competitive manufacturing base in 
        the United States is essential for economic prosperity and 
        national welfare and requires continuous development and 
        adoption of advanced manufacturing technologies that will 
        enable United States manufacturers to develop innovative 
        products rapidly and manufacture goods of the highest quality 
        at competitive prices;
            (4) there is general agreement on which fields of 
        technology are critical for economic competitiveness through 
        the first decade of the next century, but the United States 
        Government must pursue a comprehensive strategy to ensure that 
        the appropriate research, development, and applications 
        activities and other reforms occur so these technologies are 
        readily available to United States manufacturers for 
        incorporation into products made in the United States;
            (5) technology-based products of the twenty-first century 
        must be developed incorporating the values of sustainable 
        development, including low energy and material use, safety, 
        recyclability, and minimal pollution;
            (6) the cost of and difficulty in obtaining investment 
        capital for small high technology companies are significant 
        deterrents to their formation, development, and growth;
            (7) standardization of weights and measures, including 
        development and promotion of product and quality standards, has 
        a significant role to play in competitiveness;
            (8) strategic technology planning for sustainable economic 
        growth, the support of critical civilian technology research, 
        development, and application, and advancement of manufacturing 
        technology research, development, and adoption are appropriate 
        Government roles; and
            (9) programs established under this Act, and the amendments 
        made by this Act, shall be funded as a result of shifting the 
        total Federal investment in research and development to achieve 
        a balance between support for defense and civilian activities, 
        and shall not be financed through additional deficit spending.

SEC. 103. PURPOSES.

    The purposes of this Act are to--
            (1) promote and facilitate the creation, development, and 
        adoption of technologies by United States companies throughout 
        the Nation that will contribute significantly to United States 
        competitiveness, employment, and sustainable economic growth;
            (2) improve the competitiveness of United States 
        manufacturers, particularly small businesses, by developing a 
        nationwide technology outreach program to improve access to 
        information, expertise, technology, and management practices 
        required to compete throughout the world;
            (3) promote the development and rapid application of 
        advanced manufacturing technologies and processes by United 
        States manufacturers, with emphasis on environmentally sound 
        practices and sustainable economic growth;
            (4) stimulate long-term investment in United States 
        companies engaged in development or utilization of critical or 
        other advanced technologies;
            (5) establish mechanisms to ensure synergistic linkages 
        between Federal, State, and local initiatives aimed at 
        enhancing the competitiveness of United States companies;
            (6) enhance and expand the core programs of the National 
        Institute of Standards and Technology, including the Advanced 
        Technology Program;
            (7) monitor and assess foreign technology capabilities 
        relative to those of the United States in order to assist 
        United States companies and policymakers in identifying and 
        responding to competitive opportunities and challenges; and
            (8) facilitate cooperation among Federal agencies with the 
        goal of achieving an integrated national effort to improve 
        United States competitiveness, employment, and sustainable 
        growth.

SEC. 104. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``advanced manufacturing technology'' has the 
        meaning given such term in section 4 of the Stevenson-Wydler 
        Technology Innovation Act of 1980, as amended by section 206(a) 
        of this Act;
            (2) the term ``critical technologies'' means technologies 
        identified as critical technologies pursuant to section 603(d) 
        of the National Science and Technology Policy, Organization, 
        and Priorities Act of 1976 (42 U.S.C. 6683(d));
            (3) the term ``Director'' means the Director of the 
        Institute;
            (4) the term ``Institute'' means the National Institute of 
        Standards and Technology;
            (5) the term ``modern technology'' has the meaning given 
        such term in section 4 of the Stevenson-Wydler Technology 
        Innovation Act of 1980, as amended by section 206(a) of this 
        Act;
            (6) the term ``Secretary'' means the Secretary of Commerce;
            (7) the term ``small business'' means a United States 
        company that is a small business within the meaning given such 
        term in the Small Business Act;
            (8) the term ``sustainable economic growth'' has the 
        meaning given such term in section 4 of the Stevenson-Wydler 
        Technology Innovation Act of 1980, as amended by section 206(a) 
        of this Act;
            (9) the term ``State'' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States;
            (10) the term ``United States'' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States;
            (11) the term ``United States company'' has the meaning 
        given such term in section (4) of the Stevenson-Wydler 
        Technology Innovation Act of 1980, as amended by section 206(a) 
        of this Act;
            (12) the term ``United States manufacturer'' has the 
        meaning given such term in section 4 of the Stevenson-Wydler 
        Technology Innovation Act of 1980, as amended by section 206(a) 
        of this Act; and
            (13) the term ``Under Secretary'' means the Under Secretary 
        of Commerce for Technology.

                        TITLE II--MANUFACTURING

           Subtitle A--Manufacturing Technology and Extension

SEC. 201. SHORT TITLE.

    This subtitle may be cited as the ``Manufacturing Technology and 
Extension Act of 1993''.

SEC. 202. FINDINGS, PURPOSE, AND STATEMENT OF POLICY.

    The Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3701 et seq.) is amended by adding at the end the following new title:

                 ``TITLE III--MANUFACTURING TECHNOLOGY

``SEC. 301. FINDINGS, PURPOSE, AND STATEMENT OF POLICY.

    ``(a) Findings.--Congress finds and declares the following:
            ``(1) United States manufacturers, especially small 
        businesses, require the adoption and implementation of both 
        modern and advanced manufacturing and process technologies to 
        meet the challenge of foreign competition.
            ``(2) The development and application of modern and 
        advanced manufacturing technologies are vital to the 
        sustainable economic growth, standard of living, 
        competitiveness in world markets, and national security and 
        welfare of the United States.
            ``(3) New developments in flexible, computer-integrated 
        manufacturing, electronic manufacturing communications 
        networks, and other new technologies make possible dramatic 
        improvements across all industrial sectors in productivity, 
        quality, and the speed with which United States manufacturers 
        can respond to changing market opportunities.
            ``(4) The application of advances in computer science and 
        technology to manufacturing is also vital to the Nation's 
        prosperity, national and economic security, industrial 
        production, engineering, and scientific advancement.
            ``(5) The Department of Commerce's Technology 
        Administration, along with other Federal agencies, can continue 
        to play an important role in assisting United States companies 
        to develop, test, and adopt modern and advanced manufacturing 
        technologies and in establishing high-performance computing 
        technology testbeds to develop, refine, test, and transfer 
        advanced manufacturing and networking technologies and 
        associated applications.
    ``(b) Purpose.--It is the purpose of this title to contribute to 
the competitiveness of the United States by enhancing the Department of 
Commerce's technology programs to--
            ``(1) provide United States manufacturers, especially small 
        businesses, with ready access to high quality advice and 
        assistance in the development, adoption, and improvement of 
        modern manufacturing processes and technology, and in solving 
        their specific technology-based problems; and
            ``(2) encourage, facilitate, and support the development 
        and adoption of advanced manufacturing principles and 
        technologies by United States manufacturers.
    ``(c) Statement of Policy.--Congress declares that it is the policy 
of the United States that--
            ``(1) Federal agencies, particularly the Department of 
        Commerce, shall work with United States manufacturers, labor, 
        and the States to ensure that the United States is second to no 
        other nation in the development, adoption, and use of modern 
        and advanced manufacturing technology;
            ``(2) the Department of Commerce shall work with all the 
        major Federal research and development agencies to encourage 
        the development and adoption, by United States manufacturers, 
        of advanced manufacturing technologies, and shall work closely 
        with United States manufacturers and labor, and with the 
        Nation's universities, to develop and test those technologies; 
        and
            ``(3) the Department of Commerce shall place a high 
        priority on the establishment and growth of a National 
        Technology Outreach Program to promote and facilitate the 
        development and use by United States manufacturers of modern 
        and advanced manufacturing systems and applications for 
        manufacturing.
    ``(d) Construction.--Nothing in this title shall be construed as 
modifying the duties and responsibilities of the Department of Energy 
with regard to its technology resources and expertise in matters under 
its jurisdiction.''.

SEC. 203. ROLE OF THE DEPARTMENT OF COMMERCE.

    Title III of the Stevenson-Wydler Technology Innovation Act of 
1980, as added by section 202 of this Act, is further amended by adding 
at the end the following new section:

``SEC. 302. ROLE OF THE DEPARTMENT OF COMMERCE.

    ``(a) Department of Commerce.--Consistent with the purposes and 
policies of section 301, the Department of Commerce shall have primary 
responsibility in the Federal Government in working with United States 
manufacturers and labor and the States to develop advanced 
manufacturing technologies and to promote and assist the adoption and 
use of modern and advanced manufacturing technologies, practices, and 
management techniques throughout the United States. In carrying out 
this title, the Secretary, acting, as appropriate, through the Under 
Secretary and the Director, shall--
            ``(1) consult and cooperate with other Federal agencies, 
        including the Department of Defense, the Department of Energy, 
        and the National Aeronautics and Space Administration to ensure 
        consistent and, where possible, coordinated efforts to promote 
        the development and adoption of modern and advanced 
        manufacturing technologies;
            ``(2) assist the Office of Science and Technology Policy in 
        its efforts to coordinate the manufacturing technology 
        activities of the various Federal agencies; and
            ``(3) work with representatives of Federal, State, and 
        local agencies, manufacturing extension programs, private 
        industry, industry groups, worker organizations, and academia 
        to encourage and facilitate the use of both advanced 
        manufacturing technologies, including those developed by the 
        Advanced Manufacturing Technology Development Program 
        established under section 304 of this Act, and modern 
        manufacturing technologies and practices to United States 
        manufacturers.
The Secretary shall annually report to Congress on actions taken under 
this subsection.
    ``(b) Other Federal Agencies.--To the extent permitted by other 
law, other Federal agencies shall cooperate with the Secretary in 
carrying out this title.''.

SEC. 204. NATIONAL TECHNOLOGY OUTREACH PROGRAM.

    Title III of the Stevenson-Wydler Technology Innovation Act of 
1980, as added by sections 202 and 203 of this Act, is further amended 
by adding at the end the following new section:

``SEC. 303. NATIONAL TECHNOLOGY OUTREACH PROGRAM.

    ``(a) Establishment and Purpose.--There is hereby established a 
National Technology Outreach Program (in this section referred to as 
the `Outreach Program'), the purpose of which shall be to--
            ``(1) interconnect, programmatically and electronically, 
        the Nation's technology and manufacturing extension centers, 
        programs, and activities;
            ``(2) improve the competitiveness of United States 
        manufacturers and create jobs located in the United States; and
            ``(3) assist United States manufacturers, especially small 
        businesses, to expand and accelerate the use of cost-effective 
        modern manufacturing technologies and practices and to develop 
        and adopt advanced manufacturing technologies. The Secretary, 
        acting through the Under Secretary and the Director, shall 
        implement and coordinate the Outreach Program in accordance 
        with an initial plan and a 5-year plan for the Outreach 
        Program, to be submitted to the Congress under subsection (g).
    ``(b) Program Components.--The Outreach Program shall constitute a 
partnership between the Department of Commerce, the States, the private 
sector, and, as appropriate, shall include other Federal agencies to 
provide a national system of manufacturing and technology extension 
centers and technical services to United States manufacturers, 
particularly small businesses. The Outreach Program shall include--
            ``(1) Manufacturing Outreach Centers established under 
        subsection (c);
            ``(2) Regional Centers for the Transfer of Manufacturing 
        Technology established under section 25 of the National 
        Institute of Standards and Technology Act (15 U.S.C. 278k);
            ``(3) the State Technology Extension Program established 
        under section 26 of the National Institute of Standards and 
        Technology Act (15 U.S.C. 278l);
            ``(4) the Outreach Program Information Network and the 
        Clearinghouse established under subsections (d) and (e) of this 
        section, respectively; and
            ``(5) other technology and manufacturing extension centers 
        and activities supported by Federal, State, or local agencies 
        which could contribute to the goals of this title and that the 
        Secretary considers appropriate for inclusion in the Outreach 
        Program.
    ``(c) Manufacturing Outreach Centers.--(1) Eligible government and 
private sector organizations that are engaged in technology or 
manufacturing extension activities may apply to the Secretary for 
designation as Manufacturing Outreach Centers, in such form and manner 
as the Secretary may prescribe. Eligible organizations include Federal, 
State, and local government agencies, extension programs, universities, 
and laboratories; small business development centers; and professional 
societies, worker organizations, industrial organizations, nonprofit 
organizations, community development organizations, community colleges, 
and technical schools and colleges.
    ``(2) The Secretary shall establish standards, consistent with the 
requirements of subsection (f), for designation of existing technology 
or manufacturing extension programs and for qualification of start-up 
programs as Manufacturing Outreach Centers.
    ``(3) The Secretary may, through a competitive process, make 
grants, subject to the availability of appropriations, to Manufacturing 
Outreach Centers designated in accordance with the standards 
established under paragraph (2), to enable them to fulfill the purposes 
and perform the activities of the Outreach Program. If a State plan for 
technology extension exists in a State where an applicant for a grant 
under this paragraph is operating or plans to operate, the proposer 
shall demonstrate in its application that its proposal is compatible 
with such State plan. The purpose of such grants is to upgrade the 
overall quality of the Outreach Program and to contribute to the goal 
of ready availability of the services and information provided through 
the Outreach Program, including information on modern and advanced 
manufacturing technology, to all interested United States 
manufacturers. Such grants shall be awarded to increase the 
capabilities and capacity of Manufacturing Outreach Centers. 
Manufacturing Outreach Centers may not concurrently receive financial 
assistance under section 25 of the National Institute of Standards and 
Technology Act and grants under this paragraph. Grants may be awarded 
under this paragraph for an initial period not to exceed 3 years and 
may be renewed for one additional period, not to exceed 2 years. Such 
grants may not at any time exceed 50 percent of the operating costs and 
in-kind contributions of the grant recipient.
    ``(4) In selecting applicants to participate in the Outreach 
Program and in making grants under paragraph (3), the Secretary shall 
solicit and consider evaluations of the applicant's performance record 
and current capabilities, and the potential usefulness of the 
applicant's proposal, from United States manufacturers that the 
Secretary considers qualified to make such evaluations.
    ``(d) Outreach Program Information Network.--(1) The Department of 
Commerce shall provide for an instantaneous, interactive electronic 
communications network (in this section referred to as the `outreach 
network') to serve the Outreach Program, to facilitate effective and 
efficient interaction within it, and to permit the collection and 
dissemination in electronic form, in a timely and accurate manner, of 
information described in subsection (e). The outreach network shall, 
wherever practicable, make use of existing public and private computer 
networks, data bases, and electronic bulletin boards. The design, 
configuration, acquisition plan, and operating policies, including user 
fees and appropriate electronic access for public and private 
information suppliers and users, of the outreach network shall be 
included in the 5-year plan prepared under subsection (g)(2) and shall 
address--
            ``(A) effective mechanisms for providing operating funds 
        for the maintenance and use of the outreach network established 
        under this paragraph, including user fees, industry support, 
        and continued Federal investment;
            ``(B) the future operation and evolution of the outreach 
        network, including its relationship with other public or 
        private information services;
            ``(C) how to protect the copyrights of material distributed 
        over the outreach network; and
            ``(D) appropriate policies--
                    ``(i) to ensure the security of proprietary 
                information that might be available on the outreach 
                network and to protect the privacy of users of the 
                outreach network; and
                    ``(ii) to facilitate and limit access to the 
                outreach network and its information to member 
                organizations of the Outreach Program and to United 
                States companies, State and local governments, United 
                States universities and colleges, and United States 
                nonprofit organizations that the Secretary deems 
                appropriate.
    ``(2) Except as provided in this section, the outreach network 
established under paragraph (1) shall be designed and configured in a 
manner that will enable interoperability with networks and technologies 
developed under the National High-Performance Computing Program 
described in section 101 of the High-Performance Computing Act of 1991 
(15 U.S.C. 5511). The Secretary shall also, as appropriate, coordinate 
activities under this subsection with the relevant activities of other 
Federal agencies, particularly the agile manufacturing/enterprise 
integration activities of the Department of Defense.
    ``(e) Clearinghouse.--(1) The Secretary shall develop a 
clearinghouse system, using existing public and private sector 
information providers and carriers where appropriate, to--
            ``(A) identify expertise and acquire information, 
        appropriate to the purpose of the Outreach Program stated in 
        subsection (a), from all appropriate Federal sources, and where 
        appropriate from other sources, providing assistance where 
        necessary in making such information electronically available 
        through and compatible with the outreach network;
            ``(B) ensure ready access, through the outreach network, by 
        United States companies, Federal agencies, State and local 
        governments, United States universities and colleges, United 
        States nonprofit organizations that the Secretary deems 
        appropriate, and member organizations of the Outreach Program, 
        to the most recent relevant available information and 
        expertise;
            ``(C) ensure that common standards of interconnection are 
        utilized by the outreach network and the clearinghouse to allow 
        maximum interoperability and usership; and
            ``(D) to the extent practicable, inform United States 
        manufacturers of the availability of such information.
    ``(2) The clearinghouse shall include information available 
electronically on--
            ``(A) activities of Manufacturing Outreach Centers, 
        Regional Centers for the Transfer of Manufacturing Technology, 
        the State Technology Extension Program, and the users of the 
        outreach network;
            ``(B) domestic and international standards and other export 
        promotion information, including conformity assessment 
        requirements and procedures;
            ``(C) the Malcolm Baldrige Quality program, and quality 
        principles and standards;
            ``(D) manufacturing processes minimizing waste and negative 
        environmental impact;
            ``(E) federally funded technology development and transfer 
        programs;
            ``(F) how to access data bases and services; and
            ``(G) skills training, particularly the implementation and 
        use of modern and advanced manufacturing techniques.
    ``(3) The Secretary, acting through the Under Secretary, may 
convene a national conference to develop recommendations for common 
standards for interconnection and for improved dissemination to users 
of the clearinghouse of information on domestic and international 
technical regulations and standards, and on conformity assessment 
procedures, including draft standards and regulations. Invited 
participants are to include a broad cross section of the standards, 
accreditation, and user communities.
    ``(f) Additional Requirements.--In carrying out this section, the 
Secretary shall satisfy the following requirements:
            ``(1) The Outreach Program and the outreach network shall 
        be established and operated through cooperation and cofunding 
        among Federal, State, and local governments, other public and 
        private contributors, and end users that the Secretary 
        determines are appropriate for providing maximum benefit to 
        United States manufacturers.
            ``(2) The Outreach Program and the outreach network shall 
        utilize and leverage, to the extent practicable, existing 
        organizations, data bases, electronic networks, facilities, 
        capabilities, and existing standards for interconnection, and 
        shall be designed to complement rather than supplant State and 
        local programs.
            ``(3) The Outreach Program and the outreach network shall 
        be subject to all applicable provisions of law for the 
        protection of trade secrets and business confidential 
        information.
            ``(4) Access to the services available through the Outreach 
        Program and information available through the outreach network 
        servicing the Outreach Program shall be limited, as 
        appropriate, to United States companies, State and local 
        governments, United States universities and colleges, and 
        United States nonprofit organizations that the Secretary deems 
        appropriate.
            ``(5) Local or regional needs should determine the 
        management structure and staffing of the Manufacturing Outreach 
        Centers. The Outreach Program shall strive for geographical 
        balance with the ultimate goal of access for all United States 
        manufacturers.
            ``(6) Manufacturing Outreach Centers should have the 
        capability to deliver outreach services directly to United 
        States manufacturers, actively work with, rather than supplant, 
        the private sector, and to the extent practicable, maximize the 
        exposure of United States manufacturers to demonstrations of 
        modern technologies in use, including flexible manufacturing 
        practices.
            ``(7) The Department of Commerce shall develop mechanisms 
        for--
                    ``(A) soliciting the perspectives of United States 
                manufacturers using the services of the Manufacturing 
                Outreach Centers and Regional Centers for the Transfer 
                of Manufacturing Technology; and
                    ``(B) evaluating the effectiveness of the 
                Manufacturing Outreach Centers and Regional Centers for 
                the Transfer of Manufacturing Technology.
    ``(g) Plan and Reports.--(1) Within 6 months after the date of 
enactment of this title, the Secretary, after consultation with the 
Under Secretary, the Director, the Department of Commerce Technology 
Advisory Board, other appropriate Federal agencies, and a cross-section 
of potential participants in the Outreach Program, shall submit an 
initial plan for the implementation of this title to Congress--
            ``(A) describing how the Secretary will carry out the 
        responsibility to create, operate, and support the Outreach 
        Program and the outreach network, including the interactive 
        electronic linkage of Manufacturing Outreach Centers to the 
        programs of the Technology Administration and other appropriate 
        Federal, State, and local agencies;
            ``(B) establishing criteria and procedures, consistent with 
        the requirements of this title, for--
                    ``(i) the selection of organizations to receive 
                Department of Commerce services or financial assistance 
                as part of the Outreach Program, including 
                qualifications and training of technology extension 
                agents;
                    ``(ii) access to services provided by participants 
                in the Outreach Program and to information available 
                through the outreach network servicing the Outreach 
                Program; and
                    ``(iii) the annual evaluation of the Outreach 
                Program in achieving the purposes of this title; and
            ``(C) evaluating the need for and the benefits of a 
        National Conference of States on Technology Extension, similar 
        in structure to the National Conference on Weights and 
        Measures, and, if the Secretary determines that such a 
        Conference is advisable, developing, in consultation with the 
        States and other interested parties, a plan for the 
        establishment, operation, funding, and evaluation of such a 
        Conference.
    ``(2) Within 1 year after the date of enactment of this title, the 
Secretary, in consultation with the Under Secretary, the Director, and 
the Department of Commerce Technology Advisory Board, shall prepare and 
submit to the Congress a 5-year plan for implementing the Outreach 
Program and the outreach network and clearinghouse established under 
subsections (d) and (e), respectively. Such 5-year plan shall identify 
appropriate methods for expanding the Outreach Program in a 
geographically balanced manner. Such 5-year plan shall include a 
detailed implementation plan and cost estimates and shall take into 
consideration and build on the report submitted under paragraph (1). In 
the preparation of such 5-year plan, the Secretary shall provide an 
opportunity for public comment, and the plan submitted to Congress 
shall include a summary of comments received. Such plan may not be 
implemented until 90 days after its submission to the Congress.
    ``(3) Beginning with first year after submission of the 5-year plan 
under paragraph (2), the Secretary shall annually report to the 
Congress, at the time of the President's annual budget request to 
Congress, on--
            ``(A) progress made in achieving the purposes of the 
        Outreach Program described in subsection (a) using criteria and 
        procedures established under subsection (g)(1)(B)(iii);
            ``(B) changes proposed to the 5-year plan;
            ``(C) performance in adhering to schedules; and
            ``(D) any recommendations for legislative changes necessary 
        to enhance the Outreach Program.
The report under this paragraph submitted at the end of the fourth year 
of operation of the Outreach Program shall include recommendations on 
whether to terminate the Outreach Program or extend it for an 
additional period not to exceed 5 years.''.

SEC. 205. ADVANCED MANUFACTURING TECHNOLOGY DEVELOPMENT PROGRAM.

    Title III of the Stevenson-Wydler Technology Innovation Act of 
1980, as added by sections 202, 203, and 204 of this Act, is further 
amended by adding at the end the following new section:

``SEC. 304. ADVANCED MANUFACTURING TECHNOLOGY DEVELOPMENT PROGRAM.

    ``(a) Establishment.--The Secretary, through the Under Secretary 
and the Director, shall establish an Advanced Manufacturing Technology 
Development Program which shall include projects to develop advanced 
manufacturing systems, networks, electronic data exchange, and which 
shall be complementary with advanced manufacturing technology 
development programs supported by other Federal agencies.
    ``(b) Purpose.--The purpose of the Advanced Manufacturing 
Technology Development Program is to create collaborative multiyear 
technology development programs involving United States companies and, 
as appropriate, cooperating with other Federal agencies and 
laboratories, the States, worker organizations, universities and 
colleges, independent research organizations, and other interested 
persons, in order to develop, refine, test, and transfer design and 
manufacturing technologies and associated applications, including 
advanced computer integration and electronic networks for manufacturing 
information exchange.
    ``(c) Program Components.--The Advanced Manufacturing Technology 
Development Program shall include--
            ``(1) the advanced manufacturing research and development 
        activities at the Institute; and
            ``(2) one or more technology development testbeds within 
        the United States, selected in accordance with procedures, 
        including cost sharing, established for the Advanced Technology 
        Program established under section 28 of the National Institute 
        of Standards and Technology Act (15 U.S.C. 278n), whose purpose 
        shall be to develop, refine, and test advanced manufacturing, 
        data exchange, and networking technologies and associated 
        applications and to facilitate the transfer of such 
        technologies and applications to United States manufacturers.
    ``(d) Functions and Activities.--The Advanced Manufacturing 
Technology Development Program, under the coordination of the 
Secretary, through the Director, shall--
            ``(1) test and, as appropriate, facilitate and support the 
        development of the equipment, computer software, and systems 
        integration necessary for the successful operation within the 
        United States of advanced design and manufacturing systems and 
        associated electronic networks;
            ``(2) establish at the Institute and the technology 
        development testbed or testbeds--
                    ``(A) prototype advanced computer-integrated 
                manufacturing systems;
                    ``(B) prototype electronic networks linking 
                manufacturing systems; and
                    ``(C) prototype clean manufacturing systems;
            ``(3) assist United States companies to develop voluntary 
        consensus standards relevant to advanced computer-integrated 
        manufacturing operations, including standards for networks, 
        electronic data interchange, and digital product data 
        specifications;
            ``(4) help to make high-performance computing and 
        networking technologies an integral part of design and 
        production processes where appropriate;
            ``(5) conduct research to identify and overcome technical 
        barriers to the successful and cost-effective operation of 
        advanced manufacturing systems and networks and to promote and 
        facilitate electronic data exchange;
            ``(6) facilitate the efforts of United States companies to 
        develop and test new applications for manufacturing systems, 
        networks, and information exchange;
            ``(7) involve in the Advanced Manufacturing Technology 
        Development Program, to the maximum extent practicable, both 
        those United States manufacturers which make manufacturing 
        technology and related computer equipment and software, and 
        United States companies which buy such technology, equipment 
        and software;
            ``(8) identify training needs, as appropriate, for 
        managers, engineers, and employees of United States 
        manufacturers in the operation and applications of advanced 
        manufacturing technologies and networks, with particular 
        emphasis on training for production workers in the effective 
        use of advanced manufacturing technology;
            ``(9) work with United States companies, universities, 
        independent research organizations, and other interested 
        parties to develop standards, tools, and techniques for the use 
        of advanced computer-based training systems, including multi-
        media and interactive learning technologies;
            ``(10) involve small businesses in its activities;
            ``(11) exchange information and personnel, as appropriate, 
        between the technology development testbeds and the outreach 
        network created under section 303(d); and
            ``(12) coordinate its activities with the National High-
        Performance Computing Program described in section 101 of the 
        High-Performance Computing Act of 1991 (15 U.S.C. 5511) to 
        ensure that both programs are complementary and compatible.
    ``(e) Testbed Awards.--(1) In selecting applicants to receive 
awards under subsection (c)(2) of this section, the Secretary shall 
give preferential consideration to applicants that have existing 
computer expertise in manufacturing applications and the ability to 
diffuse such expertise to United States companies, and that, in the 
case of joint research and development ventures, include both suppliers 
and users of advanced manufacturing technology. In the case of systems 
described in subsection (d)(2)(C), the Secretary shall also give 
preferential consideration to applicants that have existing program 
expertise in clean manufacturing, including the areas of concurrent 
engineering, materials research, and environmental science, and which 
have a technology transfer mechanism in place to transfer testbed 
results of a clean manufacturing program to industry participants.
    ``(2) An industry-led joint research and development venture 
applying for an award under subsection (c)(2) of this section may 
include one or more State research organizations, universities, Federal 
laboratories, independent research organizations, or Regional Centers 
for the Transfer of Manufacturing Technology (as created under section 
25 of the National Institute of Standards and Technology Act) and other 
organizations as the Secretary considers appropriate.
    ``(f) Advice and Assistance.--(1) Within 6 months after the date of 
enactment of this title, and before any request for proposals is 
issued, the Secretary shall hold one or more workshops to solicit 
advice from United States companies and from other Federal agencies, 
particularly the Department of Defense, the Department of Energy, and 
the National Aeronautics and Space Administration, regarding the 
specific missions and activities of the testbeds.
    ``(2) The Secretary shall, to the greatest extent possible, 
coordinate activities under this section with activities of other 
Federal agencies and initiatives relating to computer-aided acquisition 
and logistics support, electronic data interchange, flexible computer-
integrated manufacturing, and enterprise integration.
    ``(3) The Secretary may request and accept funds, facilities, 
equipment, or personnel from other Federal agencies in order to carry 
out this section.
    ``(g) Antitrust Savings Clause.--This section shall not be 
construed to modify, impair, or supersede the operation of the 
antitrust laws. For purposes of this subsection, the term `antitrust 
laws' has the meaning given it in subsection (a) of the first section 
of the Clayton Act (15 U.S.C. 12(a)), except that such term includes 
the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.), 
commonly known as the Robinson Patman Act, and section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45) to the extent that such section 5 
applies to unfair methods of competition.''.

SEC. 206. MISCELLANEOUS AND CONFORMING AMENDMENTS.

    (a) Definitions.--Section 4 of the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3703) is amended by adding at the end 
the following new paragraphs:
            ``(14) `Director' means the Director of the National 
        Institute of Standards and Technology.
            ``(15) `Institute' means the National Institute of 
        Standards and Technology.
            ``(16) `Assistant Secretary' means the Assistant Secretary 
        of Commerce for Technology Policy.
            ``(17) `Advanced manufacturing technology' means--
                    ``(A) numerically-controlled machine tools, robots, 
                automated process control equipment, computerized 
                flexible manufacturing systems, associated computer 
                software, and other technology for improving 
                manufacturing and industrial production of goods, 
                including biotechnology products, which advance the 
                state-of-the-art; or
                    ``(B) novel manufacturing techniques and processes 
                not previously generally available that improve 
                manufacturing quality, productivity, and practices, 
                including engineering design, quality assurance, 
                concurrent engineering, continuous process production 
                technology, inventory management, upgraded worker 
                skills, communications with customers and suppliers, 
                and promotion of sustainable economic growth.
            ``(18) `Modern technology' means the best available proven 
        technology, techniques, and processes appropriate to enhancing 
        the productivity of manufacturers or to promoting sustainable 
        economic growth.
            ``(19) `Sustainable economic growth' means economic growth 
        that enhances the national quality of life and preserves 
        environmental integrity.
            ``(20) The term `United States company' means an entity 
        which the Secretary finds, based on a demonstration by such 
        entity--
                    ``(A) maintains substantial employment in the 
                United States;
                    ``(B) agrees, with respect to a technology arising 
                from assistance provided under this Act or the National 
                Competitiveness Act of 1993, to promote the manufacture 
                within the United States of products resulting from 
                that technology;
                    ``(C) agrees to procure parts and materials for 
                such products from competitive United States suppliers; 
                and
                    ``(D) either--
                            ``(i) is a United States-owned company; or
                            ``(ii) is a company incorporated in the 
                        United States that has a parent company 
                        incorporated in a country which the Secretary 
                        finds--
                                    ``(I) affords to United States-
                                owned companies opportunities 
                                comparable to those afforded to any 
                                other company to participate in 
                                programs and to have access to 
                                resources and information equivalent to 
                                the opportunities authorized under this 
                                Act or the National Competitiveness Act 
                                of 1993 to foreign-owned entities 
                                engaged in commerce in the United 
                                States;
                                    ``(II) has a standards development 
                                and conformity assessment process that 
                                is open and transparent, and that 
                                results in standards that are fair and 
                                reasonable and do not discriminate 
                                against United States products and 
                                production processes;
                                    ``(III) affords to United States-
                                owned companies local investment 
                                opportunities comparable to those 
                                afforded any other company; and
                                    ``(IV) affords adequate and 
                                effective protection for the 
                                intellectual property rights of United 
                                States-owned companies.
            ``(21) The term `United States manufacturer' means a United 
        States company which the Secretary finds, based on a 
        demonstration by such company, makes substantial investments in 
        the United States in research, development, and manufacturing 
        (including the manufacture of major components or subassemblies 
        in the United States).
            ``(22) The term `United States-owned company' has the 
        meaning given such term in section 28(j)(2) of the National 
        Institute of Standards and Technology Act (15 U.S.C. 
        278n(j)(2).
            ``(23) `Benchmarking' means the assessment of foreign 
        science and technology capabilities relative to comparable 
        United States capabilities.
            ``(24) `Independent research organizations' means nonprofit 
        organizations organized primarily for the purpose of conducting 
        or managing research activities.''.
    (b) Redesignations.--The Stevenson-Wydler Technology Innovation Act 
of 1980 (15 U.S.C. 3701 et seq.) is amended--
            (1) by inserting immediately after section 4 the following 
        new title heading:

       ``TITLE I--DEPARTMENT OF COMMERCE AND RELATED PROGRAMS'';

            (2) by redesignating sections 5 through 10 as sections 101 
        through 106, respectively;
            (3) by redesignating sections 16 through 22, as sections 
        107 through 113, respectively;
            (4) by inserting immediately after section 113 (as 
        redesignated by paragraph (3) of this subsection) the following 
        new title heading:

               ``TITLE II--FEDERAL TECHNOLOGY TRANSFER'';

            (5) by redesignating sections 11 through 15 as sections 201 
        through 205, respectively;
            (6) by redesignating section 23 as section 206;
            (7) in section 4--
                    (A) by striking ``section 5'' each place it appears 
                and inserting in lieu thereof ``section 101'';
                    (B) in paragraphs (4) and (6), by striking 
                ``section 6'' and ``section 8'' each place they appear 
                and inserting in lieu thereof ``section 102'' and 
                ``section 104'', respectively; and
                    (C) in paragraph (13), by striking ``section 6'' 
                and inserting in lieu thereof ``section 102'';
            (8) in section 105 (as redesignated by paragraph (2) of 
        this subsection) by striking ``section 6'' each place it 
        appears and inserting in lieu thereof ``section 102'';
            (9) in section 106(d) (as redesignated by paragraph (2) of 
        this subsection) by striking ``7, 9, 11, 15, 17, or 20'' and 
        inserting in lieu thereof ``103, 105, 108, 111, 201, or 205'';
            (10) in section 201(i) (as redesignated by paragraph (5) of 
        this subsection) by inserting ``loan, lease, or'' after 
        ``may''; and by inserting ``Actions taken under this subsection 
        shall not be subject to Federal requirements on the disposal of 
        property.'' after ``activities.'';
            (11) in section 202(b) (as redesignated by paragraph (5) of 
        this subsection) by striking ``section 14'' and inserting in 
        lieu thereof ``section 204'';
            (12) in section 204(a)(1) (as redesignated by paragraph (5) 
        of this subsection) by striking ``section 12'' and inserting in 
        lieu thereof ``section 202'';
            (13) in section 113 (as redesignated by paragraph (3) of 
        this subsection) by striking ``sections 11, 12, and 13'' and 
        inserting in lieu thereof ``sections 201, 202, and 203'';
            (14) in section 206 (as redesignated by paragraph (6) of 
        this subsection)--
                    (A) by striking ``section 11(b)'' in subsection 
                (a)(2) and inserting in lieu thereof ``section 
                201(b)''; and
                    (B) by striking ``section 6(d)'' in subsection (b) 
                and inserting in lieu thereof ``section 102(d)''; and
            (15) by adding at the end of section 201 (as redesignated 
        by paragraph (5) of this subsection) the following new 
        subsection:
    ``(j) Additional Technology Transfer Mechanisms.--In addition to 
the technology transfer mechanisms set forth in this section and 
section 202 of this Act, the heads of Federal departments and agencies 
also may transfer technologies through the technology transfer and 
extension programs of the Department of Commerce and the Department of 
Defense.''.

SEC. 207. MANUFACTURING TECHNOLOGY CENTERS.

    Section 25 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278k), is amended--
            (1) by amending the section heading to read as follows: 
        ``manufacturing technology centers'';
            (2) in subsection (c)(5), by striking ``which are 
        designed'' and all that follows through ``operation of a 
        Center'' and inserting in lieu thereof ``to a maximum of one-
        third Federal funding. Each Center which receives financial 
        assistance under this section shall be evaluated during its 
        sixth year of operation, and at such subsequent times as the 
        Secretary considers appropriate, by an evaluation panel 
        appointed by the Secretary in the same manner as was the 
        evaluation panel previously appointed. The Secretary shall not 
        provide funding for additional years of the Center's operation 
        unless the evaluation is positive and the Secretary finds that 
        continuation of funding furthers the goals of the Department. 
        Such additional Federal funding shall not exceed one-third of 
        the cost of the Center's operations'';
            (3) by striking subsection (d); and
            (4) by adding at the end the following new subsections:
    ``(d) If a Center receives a positive evaluation during its third 
year of operation, the Director may, any time after that evaluation, 
contract with the Center to provide additional technology extension or 
transfer services above and beyond the baseline activities of the 
Center. Such additional services may include, but are not limited to, 
the development and operation of the following:
            ``(1) Programs to assist United States companies that are 
        engaged in manufacturing and their employees, including front-
        line production workers, in the Center's region to learn and 
        apply the technologies, techniques, and processes associated 
        with systems management technology, electronic data exchange, 
        or improving manufacturing productivity.
            ``(2) Services focused on the testing, development, and 
        application of manufacturing and process technologies within 
        specific technical fields such as advanced materials or 
        electronics fabrication for the purpose of assisting United 
        States companies that are engaged in manufacturing, both within 
        the Center's original service region and in other regions, to 
        improve manufacturing quality, product design, workforce 
        training, and production efficiency in those specific technical 
        fields.
            ``(3) Industry-led demonstration programs that involve 
        United States manufacturing technology consortia to provide 
        ongoing research, technology transfer, and worker training 
        assistance to their members. An award under this paragraph 
        shall be for no more than $500,000 per year, and shall be 
        subject to renewal after a 1-year demonstration period.
    ``(e) In addition to any assistance provided or contracts entered 
into with a Center under this section, the Director is authorized to 
make separate and smaller awards, through a competitive process, to 
nonprofit organizations which wish to work with a Center. Such awards 
shall be for the purpose of enabling those organizations to provide 
outreach services, in collaboration with the Center, to United States 
manufacturers located in parts of the region served by the Center which 
are not easily accessible to the Center and which are not served by any 
other manufacturing outreach center. Organizations which receive such 
awards shall be known as Local Manufacturing Offices. In reviewing 
applications, the Director shall consider the needs of rural as well as 
urban manufacturers. No single award for a Local Manufacturing Office 
shall be for more than three years, awards shall be renewable through 
the competitive awards process, and no award shall be made unless the 
applicant provides matching funds at least equal to the amount received 
under this section.
    ``(f) In carrying out this section, the Director shall coordinate 
his efforts with the plans for the National Technology Outreach Program 
established under section 303 of the Stevenson-Wydler Technology 
Innovation Act of 1980.''.

SEC. 208. STATE TECHNOLOGY EXTENSION PROGRAM.

    (a) Establishment.--Section 26(a) of the National Institute of 
Standards and Technology Act (15 U.S.C. 278l(a)), is amended--
            (1) by inserting immediately after ``(a)'' the following 
        new sentence: ``There is established within the Institute a 
        State Technology Extension Program.''; and
            (2) by inserting ``through that Program'' immediately after 
        ``technical assistance''.
    (b) Additional Authorities.--Section 26 of the National Institute 
of Standards and Technology Act (15 U.S.C. 278l) is amended by adding 
at the end the following new subsection:
    ``(c) In addition to the general authorities listed in subsection 
(b) of this section, the State Technology Extension Program also may, 
through merit-based competitive review processes--
            ``(1) make awards to States and conduct workshops, pursuant 
        to section 5121(b) of the Omnibus Trade and Competitiveness Act 
        of 1988, in order to help States improve their planning and 
        coordination of technology extension activities;
            ``(2) support technology demonstration projects to help 
        States provide technical assistance and services to United 
        States manufacturers that will improve their productivity and 
        competitiveness;
            ``(3) support State efforts to develop and test innovative 
        ways to help United States manufacturers improve their 
        technical capabilities;
            ``(4) support State efforts designed to help United States 
        manufacturers in rural as well as urban areas adopt modern 
        manufacturing technologies;
            ``(5) support State efforts to assist interested United 
        States manufacturers in the defense industry to adapt to modern 
        or advanced manufacturing technologies as they convert to 
        nondefense or dual-use purposes;
            ``(6) support worker technology education programs in the 
        States at institutions such as research universities, community 
        colleges, labor education centers, labor-management committees, 
        and worker organizations in production technologies critical to 
        the Nation's future, with an emphasis on high-performance work 
        systems, the skills necessary to use modern or advanced 
        manufacturing systems well;
            ``(7) help States develop programs to train personnel who 
        in turn can provide technical skills to managers and workers of 
        United States manufacturers; and
            ``(8) support State efforts to assist United States 
        manufacturers to develop on-the-job training in modern and 
        advanced manufacturing technologies, techniques, and processes 
        and to promote the development and adoption of modern and 
        advanced manufacturing technologies.''.

    Subtitle B--National Science Foun- dation Manufacturing Programs

SEC. 211. ROLE OF THE NATIONAL SCIENCE FOUNDATION IN MANUFACTURING.

    The Director of the National Science Foundation, after appropriate 
consultation with the Secretary, the Under Secretary, and the Director, 
shall--
            (1) work with United States companies to identify areas of 
        research in advanced manufacturing technologies and practices 
        that offer the potential to improve United States productivity, 
        competitiveness, employment, and sustainable economic growth;
            (2) support research at United States universities to 
        improve advanced manufacturing technologies and practices; and
            (3) work with the Technology Administration and the 
        Institute and, as appropriate, other Federal agencies to 
        accelerate the transfer to United States companies of 
        manufacturing research and innovations developed at 
        universities.

SEC. 212. ENGINEERING AND COOPERATIVE RESEARCH CENTERS.

    The Director of the National Science Foundation shall strengthen 
and expand the number of Engineering Research Centers and strengthen 
and expand the Industry/University Cooperative Research Centers Program 
with the goal of increasing the engineering talent base versed in 
critical technologies, with emphasis on advanced manufacturing 
technology and practices, and of advancing fundamental engineering 
knowledge in these technologies, including biotechnology. At least one 
Engineering Research Center shall have a research and education focus 
on the concerns of United States manufacturers, including small 
businesses that are trying to modernize their operations. Awards under 
this section shall be made on a competitive, merit review basis and on 
terms and conditions the Director may prescribe to ensure that the 
purposes for which the award is made are satisfied. Such awards may 
include support for acquisition of instrumentation, equipment, and 
facilities related to the research and education activities of the 
Centers and support for undergraduate students to participate in the 
activities of the Centers.

SEC. 213. MANUFACTURING TRAINEESHIPS AND FELLOWSHIPS.

    (a) Graduate Traineeships.--The Director of the National Science 
Foundation, in consultation with the Secretary, may establish a program 
to provide traineeships to graduate students at institutions of higher 
education within the United States who are citizens of the United 
States and who choose to pursue masters or doctoral degrees in 
manufacturing engineering. The Director of the National Science 
Foundation shall make an effort to ensure the provision of traineeships 
under this subsection to socially and economically disadvantaged 
individuals (within the meaning of section 8(a) (5) and (6) of the 
Small Business Act, and including women).
    (b) Manufacturing Managers in the Classroom Program.--The Director 
of the National Science Foundation, in consultation with the Secretary, 
may establish a program to provide fellowships, on a cost-shared basis, 
to employees of United States companies with experience in 
manufacturing to serve for 1 or 2 years as instructors in manufacturing 
at 2-year community and technical colleges in the United States.

SEC. 214. TOTAL QUALITY MANAGEMENT.

    The Director of the National Science Foundation, in consultation 
with the Secretary, the Under Secretary, and the Director, may 
establish a program to develop innovative curricula, courses, and 
materials for use by institutions of higher education for instruction 
in total quality management and related management practices, in order 
to help improve the productivity of United States companies.

                    TITLE III--CRITICAL TECHNOLOGIES

            Subtitle A--Benchmarking Science and Technology

SEC. 301. BENCHMARKING UNITED STATES SCIENCE AND TECHNOLOGY AGAINST 
              FOREIGN CAPABILITIES.

    The Stevenson-Wydler Technology Innovation Act of 1980, as amended 
by this Act, is further amended by adding at the end the following new 
title:

            ``TITLE IV--BENCHMARKING SCIENCE AND TECHNOLOGY

``SEC. 401. FINDINGS AND PURPOSES.

    ``(a) Findings.--As other countries have gained strength in new 
technologies and as centers of technical excellence have developed 
around the world, it has become increasingly important for United 
States companies and research organizations to understand their 
scientific and technological capabilities relative to those of other 
global competitors.
    ``(b) Purposes.--The purposes of this title are to conduct and 
coordinate the collection, evaluation, and dissemination, to United 
States companies, State and local governments, and nonprofit 
organizations, of information on foreign science and technology, 
specifically information assessing foreign capabilities relative to 
comparable United States capabilities.

``SEC. 402. PROGRAM RESPONSIBILITIES.

    ``(a) Department of Commerce.--The Department of Commerce shall be 
the lead agency of the Federal Government in making available 
information for assessing the comparative strength of United States 
scientific and technological capabilities. The Secretary, acting 
through the Under Secretary, shall--
            ``(1) collect within the Federal Government and disseminate 
        to United States companies, State and local governments, and 
        nonprofit organizations information regarding foreign process 
        and product research and technologies of importance to United 
        States companies and the Federal Government, and regarding 
        related technology assessment activities already underway in 
        the Federal Government;
            ``(2) provide such information and analyses in electronic 
        form, and ensure, consistent with confidentiality and security 
        considerations, that they will be available through the 
        clearinghouse to the outreach network created under section 303 
        of this Act;
            ``(3) work, in coordination with the Federal Coordinating 
        Council for Science, Engineering, and Technology, as 
        appropriate, to streamline Federal Government procedures for 
        collecting, evaluating, and disseminating information analyzing 
        foreign scientific and technological information; and
            ``(4) conduct appropriate planning for more comprehensive 
        collection, evaluation, dissemination, and application of 
        foreign science and technology information.
    ``(b) Other Agencies.--All executive departments and agencies shall 
assist the Secretary in carrying out this title.
    ``(c) Additional Authorities.--The Secretary, acting through the 
Under Secretary, is authorized to--
            ``(1) arrange for access to information collected and 
        developed under this title, in electronic form or otherwise, by 
        authorized and interested parties, including charging and 
        retaining fees for expenditure, subject to appropriations;
            ``(2) provide for the collection of additional information 
        to fulfill the purposes of this title;
            ``(3) provide for analysis of foreign research and 
        development activities and technological capabilities, 
        particularly in those areas where the United States is 
        considered to be at par or lagging foreign capabilities or 
        where foreign capabilities are projected to overtake those of 
        the United States;
            ``(4) enter into joint ventures authorized under section 
        212(a)(1)(A) of Public Law 100-519 (15 U.S.C. 3704b(a)(1)(a)) 
        in carrying out this title;
            ``(5) consult with users of such information, as 
        appropriate, on the usefulness of available foreign scientific 
        and technological information and on the need for additional 
        information and assessment activities and consult with other 
        affected agencies of the Federal Government to promote 
        consistent and useful collection, assessment, and analysis of 
        foreign technological information; and
            ``(6) establish and administer the fellowship program 
        described in subsection (d).
    ``(d) Fellowship Program.--(1) The Secretary, acting through the 
Under Secretary, shall establish and administer a fellowship program to 
support Technology Fellows to assist the Under Secretary in carrying 
out activities under this title relating to those countries that are 
major competitors of the United States in critical technologies, and to 
identify opportunities for technology transfer to the United States or 
technological collaboration for United States industries.
    ``(2) Technology Fellows shall--
            ``(A) regularly report to the Department of Commerce on 
        work planned, in progress, and accomplished; and
            ``(B) provide support to the Department of Commerce as 
        requested by that Department.
    ``(3) Fellowships awarded under the program established under this 
subsection shall--
            ``(A) be awarded for a period of 2 years;
            ``(B) be reasonable and appropriate; and
            ``(C) include provisions for living and office arrangements 
        in the host country.
    ``(4) Only individuals who--
            ``(A) have at least a bachelors degree in engineering or 
        science; and
            ``(B) have at least 5 years of work experience in 
        manufacturing or technology development,
shall be eligible for a fellowship under this program.''.

                Subtitle B--Advanced Technology Program

SEC. 321. DEVELOPMENT OF PROGRAM PLAN.

    The Secretary, acting through the Under Secretary and the Director, 
shall, within 6 months after the date of enactment of this Act, submit 
to the Congress a plan for the expansion of the Advanced Technology 
Program established under section 28 of the National Institute of 
Standards and Technology Act (15 U.S.C. 278n), with specific 
consideration given to--
            (1) closer coordination and cooperation with the Advanced 
        Research Projects Agency and other Federal research and 
        development agencies, including joint funding of large scale 
        consortia, as appropriate;
            (2) broadening of the scope of the program to include and 
        focus on as many critical technologies identified pursuant to 
        section 603(d) of the National Science and Technology Policy, 
        Organization, and Priorities Act of 1976 (42 U.S.C. 6683(d)) as 
        is appropriate; and
            (3) changes that may be needed when annual funds available 
        for awards and cooperative agreements under the Program reach 
        levels of $200,000,000 and $500,000,000.

SEC. 322. LARGE SCALE RESEARCH AND DEVELOPMENT CONSORTIA.

    (a) Establishment of Program.--The Secretary, acting through the 
Director, may establish a program for the support of large-scale 
research and development consortia.
    (b) Selection Procedures and Requirements.--
            (1) General rule.--Except as provided in paragraph (2), the 
        selection and making of awards to large-scale research and 
        development consortia under this section shall be carried out 
        in accordance with procedures and requirements applicable to 
        joint ventures described in section 28(b)(1) of the National 
        Institute of Standards and Technology Act (15 U.S.C. 
        278n(b)(1)).
            (2) Exception.--Notwithstanding section 28(b)(1)(B)(ii) of 
        the National Institute of Standards and Technology Act (15 
        U.S.C. 278n(b)(1)(B)(ii)), for purposes of awards made under 
        this section, a minority share of the cost of large-scale 
        research and development consortia may be provided by the 
        Federal Government for up to 7 years.
    (c) Project Selection.--Preference shall be given for selection 
under this section to large-scale research and development consortia 
that would not be undertaken by the private sector without a Federal 
investment of $30,000,000 or more per year.
    (d) Selection Criteria.--In selecting large-scale research and 
development consortia under this section, the Secretary, acting through 
the Director, shall give priority to consortia that best achieve the 
following goals:
            (1) Significant contribution to broad economic growth.
            (2) Significant contribution to the national quality of 
        life.
            (3) Significant contribution to environmental 
        sustainability.
            (4) Promotion of private sector partnership with Federal 
        research and development activities.
            (5) Substantial improvement of the international 
        competitiveness of United States companies.
            (6) Involvement of several competitor firms in the 
        development of the key consortia technologies.
            (7) Strengthening of the linkages between domestic 
        suppliers, systems developers, and end-users.
            (8) Participation by domestic end-users from several 
        industrial sectors.
            (9) Promotion of the diffusion of nonproprietary 
        information to United States companies through strong links 
        with organizations such as trade and professional groups.
    (e) Independent Technical Review.--The Secretary, through the 
Director, shall provide for technical review at least once every three 
years of large-scale research and development consortia receiving 
support under this section, by the National Institute of Standards and 
Technology, other national laboratories, the Department of Commerce 
Technology Advisory Board established under section 401 of this Act, or 
independent research organizations that are not a participant in the 
large-scale research and development consortium being reviewed. Such 
review shall be for the purpose of determining progress toward the 
objectives for which such large-scale research and development 
consortium was formed, with recommendations for improvement, funding 
adjustments, or termination of Federal support. The Secretary, through 
the Director, shall transmit to the Committee on Science, Space, and 
Technology of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate an annual status 
report summarizing significant accomplishments in achieving those 
objectives.
    (f) Study.--The Secretary, through the Director, shall undertake a 
study to determine the best way to maximize the benefit of large-scale 
research and development consortia to industry as a whole in carrying 
out this section. The results of such study shall be submitted to the 
Congress within 6 months after the date of the enactment of this Act. 
Such report shall include criteria and procedures for the evaluation by 
the Director of the progress of consortia funded under this section.
    (g) Termination.--The Secretary shall establish criteria and 
procedures for terminating Federal funding of a consortium under this 
section if the Secretary determines that such consortium is not making 
acceptable progress toward achieving its goals. No consortium shall 
receive funding under this section for more than 7 years.
    (h) Definition.--For purposes of this section, the term ``large-
scale research and development consortia'' means a joint venture 
described in section 28(b)(1) of the National Institute of Standards 
and Technology Act (15 U.S.C. 278n(b)(1)).

SEC. 323. TECHNICAL AMENDMENTS.

    Section 28 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278n) is amended--
            (1) by adding at the end the following new subsection:
    ``(k) Notwithstanding subsections (b)(1)(B)(ii) and (d)(3), the 
Director may grant an extension of not to exceed 6 months beyond the 
deadlines established under those subsections for joint venture and 
single applicant awardees to expend Federal funds to complete their 
projects, if such extension may be granted with no additional cost to 
the Federal Government.'';
            (2) in subsection (b)(2), by inserting ``, and with 
        independent research organizations'' after ``especially small 
        businesses''; and
            (3) in subsection (j)--
                    (A) by redesignating paragraphs (1) and (2) as 
                paragraphs (2) and (3), respectively; and
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following new paragraph:
            ``(1) the term `independent research organizations' means 
        nonprofit organizations organized primarily for the purpose of 
        conducting or managing research activities;''.

SEC. 324. COUNTRY QUALIFICATION NOTICE.

    Section 28 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278n) is amended by adding at the end thereof the 
following new subsection:
    ``(l) The Secretary shall provide prospective applicants for 
assistance under this section with guidance as to their eligibility 
under subsection (d)(9)(B)(ii). No such applicant shall be required to 
provide evidence that a country is a country described in such 
subsection (d)(9)(B)(ii).''.

SEC. 325. RECOUPMENT.

    Section 28 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278n) is amended by adding the following new subsection:
    ``(l)(1) Not later than 180 days after the date of enactment of 
this subsection, the Secretary shall establish procedures and criteria 
for recoupment in connection with any project, for which a grant, 
contract, or cooperative agreement is made under this section, which 
has led to the development of a product or process which is marketed or 
used.
    ``(2)(A) Except as provided in subparagraph (B), such recoupment 
shall be required as a condition for award and be proportional to the 
Federal share of the costs of such project, and shall be derived from 
the proceeds of royalties or licensing fees received in connection with 
such product or process.
    ``(B) In the case where a product or process is used by the 
recipient of the financial assistance under this section for the 
production and sale of its own products or processes, the recoupment 
shall consist of a payment equivalent to the payment which would be 
made under subparagraph (A).
    ``(3) The Secretary may at any time waive or defer all or some of 
the recoupment requirements of this subsection as necessary, depending 
on--
            ``(A) the commercial competitiveness of the entity or 
        entities developing or using the product or process;
            ``(B) the profitability of the project; and
            ``(C) the commercial viability of the product or process 
        utilized.''.

              Subtitle C--Civilian Technology Loan Program

SEC. 331. LOAN AND LOAN GUARANTEE AUTHORITY.

    To the extent provided in appropriation Acts, the Secretary, acting 
through the Under Secretary, may make, or enter into agreements to 
make, loans and loan guarantees, either directly or in cooperation with 
other lenders, to small and medium-sized qualified business concerns in 
accordance with this subtitle.

SEC. 332. OPERATING PLAN AND EFFECTIVE DATE.

    (a) Operating Plan.--The Secretary, acting through the Under 
Secretary, shall prepare (in consultation with the Advisory Committee 
established under section 344, other appropriate executive agencies, 
the States, United States companies, the financial community, and other 
appropriate parties) and submit to the Congress on or before November 
1, 1993, an operating plan to carry out this subtitle. In preparing 
such plan, the Secretary shall consider and evaluate alternative 
approaches to achieving the purposes of this subtitle and shall develop 
recommendations, as appropriate, to fulfill the purposes of this 
subtitle in the most effective and efficient manner achievable. Such 
evaluations and recommendations shall be included in the plan submitted 
under this subsection.
    (b) Effective Date.--Except as provided in subsection (a), the 
provisions of this subtitle shall take effect on October 1, 1994.

SEC. 333. TERMS AND CONDITIONS.

    Loans and loan guarantees made under section 331 shall be in such 
form and manner and under such terms and conditions as the Under 
Secretary may prescribe by regulation, and shall be subject to the 
following terms and conditions:
            (1) Loans awarded or guaranteed shall be for sound 
        financing of research, development, demonstration, or 
        utilization of critical technologies or advanced technologies.
            (2) Loans shall only be awarded or guaranteed if the Under 
        Secretary finds that--
                    (A) sufficient collateral, which may include both 
                tangible and intangible assets, is pledged; or
                    (B) the borrower is sufficiently financially sound,
        to reasonably ensure repayment.
            (3) Loans awarded or guaranteed may not exceed 50 percent 
        of total eligible project costs. For purposes of this section, 
        the term ``eligible project costs'' shall be defined by the 
        Under Secretary by regulation.
            (4) The total principal amount of outstanding loans awarded 
        or guaranteed to a single borrower may not exceed $2,000,000 at 
        any time.
            (5) Loans awarded or guaranteed shall be senior to any 
        other debt obligations of the borrower, except to the extent 
        that the Under Secretary considers necessary to accommodate the 
        borrower's ability to raise sufficient debt or equity capital 
        from non-Federal sources to pay the balance of eligible project 
        costs that are not covered by such loans.
            (6) Interest on a loan, or portion of a loan, awarded or 
        guaranteed by the Federal Government under this subtitle shall 
        be at a rate determined by the Secretary of the Treasury, at 
        the time such loan is made, to equal the then current average 
        market yield on outstanding debt obligations of the United 
        States with remaining periods to maturity comparable to the 
        maturity of such loan, plus an additional charge of up to 1 
        percent applied by the Under Secretary to cover expected 
        defaults and reasonable administrative costs of carrying out 
        this subtitle. For purposes of this section, the term 
        ``default'' shall be defined by the Under Secretary by 
        regulation.
            (7) Except as provided in paragraph (8), the maturity of 
        loans awarded or guaranteed under this subtitle may not be less 
        than 2 years or greater than--
                    (A) 10 years; or
                    (B) the useful life of property, plant, equipment, 
                or other assets, as determined by the Secretary of the 
                Treasury, which have been pledged as collateral for 
                such loan,
        whichever is greater.
            (8) The Under Secretary may extend the maturity of or renew 
        a loan or extend the guarantee of a loan for additional 
        periods, not to exceed 5 years, only if such extension or 
        renewal will aid in the orderly liquidation of such loan.
            (9) Payment of interest on direct loans made by the Federal 
        Government under this subtitle may be deferred by the borrower, 
        upon approval by the Under Secretary, only to the extent that 
        the borrower has established to the satisfaction of the Under 
        Secretary that the borrower has not realized sufficient 
        earnings and returns of capital to make such payment without 
        incurring undue financial hardship, and that there is a 
        reasonable prospect that such loan and interest thereon will be 
        repaid.
            (10) The Under Secretary may guarantee payment of 100 
        percent of principal and interest on a loan made under section 
        331.
            (11) The Under Secretary may establish, charge, and 
        regulate fees to cover loan origination and servicing costs 
        that are reasonable and necessary.

SEC. 334. TECHNICAL ASSISTANCE FOR LENDERS AND BORROWERS.

    The Secretary, acting through the Under Secretary, shall, upon 
request, provide technical assistance and services, as appropriate and 
needed, to lenders and borrowers under this subtitle, and shall ensure 
that such lenders and borrowers have ready access to appropriate 
assistance available under title III of the Stevenson-Wydler Technology 
Innovation Act of 1980, or under any other Act, in order to aid such 
lenders and borrowers in achieving the purposes described in section 
333(1). The Secretary may charge fees for technical assistance and 
services provided under this section in amounts sufficient to cover the 
reasonable cost of such assistance and services. The Secretary may 
waive such fees on a case-by-case basis. Fees paid to the United States 
under this section shall be deposited in an account established by the 
Under Secretary and shall be available solely for carrying out this 
subtitle, to the extent provided in advance in appropriations Acts.

SEC. 335. OUTREACH TO ECONOMICALLY DEPRESSED AREAS.

    The Secretary, acting through the Under Secretary, shall seek to 
ensure that qualified business concerns located in areas determined by 
the Secretary to have a depressed economy, or a significant 
concentration of defense-related industries, or chronically high 
unemployment, are notified of the availability of financial assistance 
through the program established under this subtitle and, to the extent 
practicable, to encourage and facilitate the participation of such 
qualified business concerns in such program.

SEC. 336. SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.

    The Secretary shall, to the fullest extent possible, ensure that at 
least 10 percent of amounts loaned under this subtitle shall be made 
available to qualified business concerns owned or controlled by 
socially and economically disadvantaged individuals (within the meaning 
of section 8(a) (5) and (6) of the Small Business Act, and including 
women). Nothing in this section shall permit or require the use of 
quotas or a requirement that has the effect of a quota in determining 
eligibility for loans made available under this subtitle. Nothing in 
this section shall be considered to extend eligibility to individuals 
on the basis of sexual orientation.

SEC. 337. DEFINITIONS.

    For purposes of this subtitle, the terms ``advanced technologies'', 
``critical technologies'', and ``qualified business concern'' have the 
meaning given such terms in section 342 of this Act.

          Subtitle D--Civilian Technology Development Program

SEC. 341. SHORT TITLE.

    This subtitle may be cited as the ``Civilian Technology Development 
Act of 1993''.

SEC. 342. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``advanced technologies'' means technologies 
        eligible for assistance under the Advanced Technology Program 
        established under section 28 of the National Institute of 
        Standards and Technology Act (15 U.S.C. 278n);
            (2) the term ``articles'' means articles of incorporation 
        for an incorporated body, and the functional equivalent, or 
        other similar documents specified by the Under Secretary, for 
        other business entities;
            (3) the term ``critical technologies'' means technologies 
        identified as critical technologies pursuant to section 603(d) 
        of the National Science and Technology Policy, Organization, 
        and Priorities Act of 1976 (42 U.S.C. 6683(d));
            (4) the term ``Department'' means the Department of 
        Commerce;
            (5) the term ``executive agency'' has the meaning given 
        such term in section 105 of title 5, United States Code;
            (6) the term ``license'' means a license issued by the 
        Under Secretary under section 345;
            (7) the term ``licensee'' means a company licensed under 
        section 345;
            (8) the term ``preferred securities'' means preferred stock 
        or a preferred limited partnership interest or other similar 
        security, as defined by the Under Secretary by regulation;
            (9) the term ``private equity capital'' means the paid-in 
        capital and paid-in surplus, on hand or legally committed to be 
        provided, of a licensee organized as a corporation, or the 
        partnership capital, on hand or legally committed to be 
        provided, of a licensee organized as an unincorporated 
        partnership, but does not include any funds--
                    (A) borrowed by the licensee from any source;
                    (B) obtained from the sale of preferred securities; 
                or
                    (C) derived directly or indirectly from any Federal 
                source;
            (10) the term ``qualified business concern'' means a United 
        States company described in section 28(d)(9)(B) of the National 
        Institute Standards and Technology Act (15 U.S.C. 
        278n(d)(9)(B)), if--
                    (A) the business of such company includes the 
                pursuit, under the Small Business Innovation Research 
                (SBIR) program, of applications described in section 
                9(e)(4)(C) of the Small Business Act (15 U.S.C. 
                638(e)(4)(C));
                    (B) the principal business of such company is the 
                development or application of a critical technology;
                    (C) such company is eligible for assistance under 
                the Advanced Technology Program (ATP) established under 
                section 28 of the National Institute of Standards and 
                Technology Act (15 U.S.C. 278n); or
                    (D) such company is principally engaged in the 
                development or exploitation of inventions, 
                technological improvements, new processes, or products 
                not previously generally available (within the meaning 
                of section 851(e)(1) of the Internal Revenue Code of 
                1986);
            (11) the term ``State'' means several States, the District 
        of Columbia, the Commonwealth of Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States;
            (12) the term ``State sponsored licensee'' means a company 
        licensed under section 345 in which a State or instrumentality 
        of a State has at least a 25 percent investment interest in the 
        private equity capital of such licensee;
            (13) the term ``university sponsored licensee'' means a 
        company licensed under section 345 in which a single university 
        or consortium of universities has at least a 25 percent 
        investment interest in the private equity capital of such 
        licensee; and
            (14) the term ``venture capital'' means consideration for 
        such--
                    (A) common stock;
                    (B) preferred stock;
                    (C) debt with equity features which may include 
                equity warrants or rights to convert into common stock 
                and which provides for interest payments contingent 
                upon and limited to the extent of earnings; or
                    (D) other financing,
        as the Under Secretary determines to be substantially similar 
        to equity financing, issued by a qualified business concern.

SEC. 343. ESTABLISHMENT AND PURPOSE.

    (a) Establishment.--There is established within the Technology 
Administration of the Department of Commerce a national program to 
stimulate and supplement the availability of long-term investment 
capital for the formation, development, and growth of qualified 
business concerns throughout the United States. The Secretary, through 
the Under Secretary, shall, through such program, provide for the 
selection, licensing, monitoring, and financial and technical support 
of professionally managed technology investment companies which in turn 
shall provide financial, management, and technical assistance to 
qualified business concerns, with preference given to satisfying the 
seed and early-stage financing needs of such concerns that are not 
being met by other sources on reasonable terms.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to contribute to United States economic 
        competitiveness, employment, and prosperity;
            (2) to promote the advancement, maturation, and application 
        of critical and other advanced technologies;
            (3) to supplement and stimulate long-term investment in 
        qualified business concerns; and
            (4) to encourage and facilitate the formation and growth of 
        professionally managed technology investment companies 
        throughout the United States that will give preference to 
        satisfying the capital needs of qualified business concerns, 
        especially during their early stages of development.
    (c) Responsibilities.--(1) In carrying out this subtitle, the 
Secretary, acting through the Under Secretary, and subject to the 
availability of appropriations, shall--
            (A) consult with and, to the extent permitted by law, 
        utilize the capabilities of other executive agencies, as 
        appropriate, to ensure the efficient and effective 
        implementation of this subtitle;
            (B) explore, with other executive agencies, ways to avoid 
        duplication of effort by consolidating the administration of 
        the program established by this subtitle with any other similar 
        Federal program, and as part of such consolidation may delegate 
        administrative functions, as necessary and appropriate, to 
        another executive agency;
            (C) consult with the Secretary of Energy, the Secretary of 
        Defense, and the Administrator of the National Aeronautics and 
        Space Administration, on all policy matters related to the 
        Civilian Technology Development Program that deal with 
        development or utilization of technologies developed by those 
        agencies;
            (D) consult with State governments to ensure that the 
        existing programs run by or chartered by State governments 
        which seek to accomplish purposes similar to those stated in 
        subsection (b) are encouraged and not undermined by the 
        implementation of this subtitle; and
            (E) explore with State governments ways in which programs 
        currently run by or chartered by State governments which seek 
        to accomplish purposes similar to those stated in subsection 
        (b) can serve as models for the Secretary or be used to ensure 
        the efficient and effective implementation of this subtitle.
    (2) To the extent permitted by law, other executive agencies shall 
cooperate with the Under Secretary in carrying out this subtitle.
    (d) Operating Plan.--The Secretary, acting through the Under 
Secretary, shall prepare (in consultation with the Advisory Committee 
established under section 344, other appropriate executive agencies, 
the States, United States companies, the financial community, and other 
appropriate parties) and submit to the Congress on or about November 1, 
1993, an operating plan to carry out this subtitle. In preparing such 
plan, the Secretary shall consider and evaluate alternative approaches 
to achieving the purposes of this subtitle and shall develop 
recommendations, as appropriate, to fulfill the purposes of this 
subtitle in the most effective and efficient manner achievable. Such 
evaluations and recommendations shall be included in the plan submitted 
under this subsection.
    (e) Outreach to Economically Depressed Areas.--The Secretary, 
acting through the Under Secretary, shall seek to ensure that qualified 
business concerns located in areas determined by the Secretary to have 
a depressed economy, or a significant concentration of defense-related 
industries, or chronically high unemployment, are notified of the 
availability of financial assistance through the program established 
under this subtitle and, to the extent practicable, to encourage and 
facilitate the participation of such qualified business concerns in 
such program.
    (f) Effective Date.--Except as provided in subsection (d) and in 
sections 344 and 351(a), the provisions of this subtitle shall take 
effect on October 1, 1994.

SEC. 344. ADVISORY COMMITTEE.

    (a) Establishment.--There is established a Civilian Technology 
Development Advisory Committee (in this section referred to as the 
``CTD Advisory Committee'').
    (b) Composition.--The CTD Advisory Committee shall be composed of 7 
members, appointed by the Under Secretary from among private 
individuals who, because of their experience and accomplishments in 
technology development, maturation, and adoption, business development, 
venture capital, finance, or other relevant areas, are exceptionally 
qualified to perform the duties of the CTD Advisory Committee. The 
Under Secretary shall designate 1 member to serve as chairman.
    (c) Duties.--The duties of the CTD Advisory Committee shall include 
advising the Under Secretary on all matters related to policy, 
planning, execution, and evaluation of the program established under 
this subtitle.
    (d) Termination.--Section 14 of the Federal Advisory Committee Act 
shall not apply to the CTD Advisory Committee.

SEC. 345. ORGANIZATION AND LICENSING.

    (a) In General.--Any incorporated body, limited partnership, or 
State instrumentality organized and chartered or otherwise existing 
under State law for the purpose of performing the functions and 
conducting the activities contemplated under this subtitle, that 
possesses the powers, capabilities, and expertise reasonably necessary 
to perform such functions and conduct such activities, may apply for a 
license under this subtitle in such form and manner as the Under 
Secretary may prescribe.
    (b) Articles.--The articles of any applicant shall specify in 
general terms the objects for which the applicant is formed, the name 
assumed by such applicant, the area or areas in which its operations 
are to be carried on, the place where its principal office is to be 
located, and the amount and classes of its shares of capital stock. 
Such articles may contain any other provisions not inconsistent with 
this subtitle that the applicant may see fit to adopt for the 
regulation of its business and the conduct of its affairs. Such 
articles and any amendments thereto adopted from time to time shall be 
subject to the approval of the Under Secretary.
    (c) Business Plan.--The business plan of any applicant shall 
specify in general terms--
            (1) how the applicant proposes to achieve the objects for 
        which it is formed, to operate and govern its business, and to 
        fulfill the purposes and satisfy the requirements of this 
        subtitle;
            (2) the board members or general partners and the 
        management and professional staff of the applicant, and the 
        professional training, experience, reputation, and investment 
        performance record, if any, of each such individual, along with 
        a description of the applicant's current and proposed 
        management structure;
            (3) all current or committed private investors in the 
        applicant, together with the amount, terms, conditions, and 
        conveyances associated with such investment, and appropriate 
        background information on each private investor; and
            (4) such other information as the Under Secretary may 
        require.
Such business plan and any material amendments thereto adopted from 
time to time shall be subject to the approval of the Under Secretary.
    (d) Approval of Articles and Business Plan; Licensing.--The 
articles and business plan of an applicant for a license shall be 
forwarded to the Under Secretary for consideration and approval or 
disapproval. In determining whether to approve a prospective licensee's 
articles and business plan and permit it to operate under the 
provisions of this subtitle, the Under Secretary shall give due regard, 
among other things, to the general business reputation, character, 
suitability, and demonstrated ability, experience, and performance in 
the development, growth, and financing of qualified business concerns, 
of the proposed owners and management of the prospective licensee, and 
the likelihood of successful operations of the prospective licensee 
including adequate profitability and financial soundness. After 
consideration of all relevant factors, if the Under Secretary approves 
the company's articles and business plan and determines that the 
applicant satisfies or will satisfy the requirements of this subtitle, 
the Under Secretary may approve the company to operate under the 
provisions of this subtitle and issue the company a license for such 
operation.

SEC. 346. CAPITAL AND MANAGEMENT REQUIREMENTS.

    (a) Capital.--(1) The private equity capital of a licensee shall be 
adequate to ensure a reasonable prospect that the licensee will be 
operated soundly and profitably, and managed actively and prudently in 
accordance with its articles and business plan. Such private equity 
capital shall not be less than $5,000,000, except that, in the case of 
a State sponsored licensee or a university sponsored licensee, such 
private equity capital shall not be less than $2,500,000. At the time 
of issuance of a license, not less than 75 percent of the private 
equity capital of the licensee shall be available or committed to be 
available for new investment in accordance with this subtitle.
    (2) To the extent permitted by other law, including the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.), 
private and public pension funds may contribute to the private equity 
capital of a licensee without restriction as to the amount of such 
contribution.
    (3) State and local government entities may contribute not more 
than 40 percent of the total private equity capital of a licensee.
    (4) The aggregate amount of shares in any such licensee or 
licensees which may be owned or controlled by any stockholder, or by 
any group or class of stockholders, may be limited by the Under 
Secretary.
    (b) Management.--The management and operational control of a 
licensee shall be carried out by suitable private individuals who 
possess the professional training, experience, and capabilities 
reasonably necessary to achieve the purposes of this subtitle.

SEC. 347. FINANCING FOR LICENSEES.

    (a) Authority To Purchase and Guarantee Preferred Securities.--To 
encourage and facilitate the formation and growth of licensees and 
qualified business concerns, the Under Secretary may purchase or commit 
to purchase nonvoting preferred securities, with or without equity 
warrants, issued by a licensee, or guarantee, or commit to guarantee, 
the payment of 100 percent of the redemption price of and dividends on 
such preferred securities, to the extent provided in appropriations 
Acts, if the licensee has demonstrated to the satisfaction of the Under 
Secretary that it is financially sound and that it has complied with or 
will comply with the requirements of this subtitle, the terms of its 
license, and any rule, regulation, or order issued under this subtitle. 
Such purchases and guarantees shall constitute direct loans and loan 
guarantees within the meaning of paragraphs (1) and (3) of section 502 
of the Federal Credit Reform Act of 1990, respectively. A trust or pool 
acting on behalf of the Under Secretary may purchase preferred 
securities that are guaranteed under this subsection.
    (b) Terms and Conditions of Preferred Securities.--(1) Guarantees 
and purchases of preferred securities, or commitments to make such 
guarantees and purchases, under this section may be made on such terms 
and conditions as the Under Secretary shall establish by regulation or 
set forth in contract to ensure compliance with this subtitle and to 
protect the interests of taxpayers and the United States in the event 
of default or otherwise. For purposes of this paragraph, the Under 
Secretary shall by regulation define the term ``default''.
    (2)(A) Except as provided in subparagraph (B), preferred securities 
issued under this section shall be senior in priority for all purposes 
to all non-Federal equity interests in a licensee unless the Under 
Secretary, in the exercise of reasonable investment prudence and in 
considering the financial soundness of the licensee, determines 
otherwise.
    (B) The equity interests of a university or consortium of 
universities, or of a State or instrumentality of a State, in a 
licensee shall be equal in priority to Federal equity interests in such 
licensee for all purposes unless the Under Secretary, in the exercise 
of reasonable investment prudence and in considering the financial 
soundness of the licensee, determines otherwise.
    (3) Preferred securities issued under this section shall be 
redeemed by the issuer not later than 10 years after their date of 
issuance for an amount equal to 100 percent of the original issue price 
plus any accrued and unpaid dividends. In order to facilitate the 
orderly liquidation of a licensee's investments, redemption of such 
preferred securities may be extended by mutual consent for no more than 
5 years beyond such expiration date.
    (4) Preferred securities issued under this section shall pay 
dividends at a rate determined by the Secretary of the Treasury at the 
time of issuance to equal the then current average market yield on 
outstanding marketable debt obligations of the United States with 
remaining periods to maturity comparable to the time to required 
redemption of such preferred securities, plus such additional charge, 
if any, toward covering expected defaults and reasonable administrative 
costs of carrying out this subtitle as the Under Secretary may 
determine to be reasonable and appropriate. Such additional charge 
shall not exceed 2 percent.
    (5) Dividends on preferred securities issued under this section 
shall be cumulative and preferred and paid out of net realized earnings 
and returns of capital available for distribution, as defined by the 
Under Secretary by regulation.
    (6) The payment of dividends on preferred securities issued under 
this section may be deferred by the issuer until such time as, and to 
the extent that, the issuer realizes earnings and returns of capital 
available for distribution. Accumulated and unpaid dividends on such 
preferred securities shall be paid by the issuer before or at the time 
of redemption of the preferred securities and before any distribution 
of net realized earnings and returns of capital of the issuer to its 
non-Federal equity investors, except as provided in subsection (e)(2) 
(B) and (C). With respect to preferred securities issued under this 
section to a party other than the Under Secretary, during the time of 
any deferral under this paragraph, the Under Secretary shall make, on 
behalf of the issuer, required dividend payments to the holder of the 
preferred securities, its agents or assigns, or the appropriate central 
registration agent, if any. The authority to make dividend payments 
provided in this paragraph shall be limited to the extent of amounts 
provided in advance in appropriations Acts for such purposes.
    (7) For purposes of this subsection, the term ``dividends'' means 
dividends on preferred stock and returns on preferred limited 
partnership interests or other similar securities, as defined by the 
Under Secretary by regulation.
    (c) Limitations and Restrictions.--(1) The total principal amount 
of debt, as evidenced by notes, bonds, debentures, or certificates of 
indebtedness, plus the total face amount of preferred securities 
purchased or guaranteed by the Under Secretary under subsection (a), 
issued and outstanding from a licensee shall not exceed 200 percent of 
the private equity capital of the licensee.
    (2) The total face amount of preferred securities purchased or 
guaranteed by the Under Secretary under subsection (a) and outstanding 
from a licensee or a combination of licensees which are commonly 
controlled, as defined and determined by the Under Secretary, shall not 
exceed $50,000,000.
    (3)(A) If preferred securities issued under this section are 
outstanding, then the issuing licensee shall be subject to the 
following restrictions:
            (i) The total principal amount of debt, as evidenced by 
        notes, bonds, debentures, or certificates of indebtedness, of a 
        licensee issued and outstanding may not exceed 50 percent of 
        the private equity capital of the licensee.
            (ii) The annual management expenses of a licensee shall not 
        exceed an amount which the Under Secretary determines to be 
        reasonable and appropriate.
            (iii) The aggregate amount of obligations and securities 
        acquired and for which commitments may be issued by a licensee 
        for any single qualified business concern shall not exceed 
        $2,000,000 or 20 percent of the private equity capital of such 
        licensee, whichever is greater, unless the Under Secretary 
        approves a greater amount.
    (B) For purposes of this paragraph, the term ``management 
expenses'' includes expenses incurred in the normal course of 
operations, but shall not include the cost of legal, accounting, and 
consulting services provided by outside parties and by affiliates of 
the licensee which are not normal practice in making and monitoring 
investments consistent with the purposes of this subtitle.
    (d) Use of Capital by Licensees.--(1) A licensee issuing preferred 
securities under this section shall invest or commit to invest--
            (A) an amount equal to the face value of such preferred 
        securities that are outstanding; plus
            (B) an amount of its private equity capital equal to 50 
        percent of the amount described in subparagraph (A),
in the venture capital of qualified business concerns in accordance 
with section 349.
    (2) At least 50 percent of the amount of investments required under 
paragraph (1) shall be for seed and early stage financing, as defined 
by the Under Secretary by regulation. The Under Secretary may alter the 
percentage requirement under this paragraph to the extent necessary, in 
the determination of the Under Secretary, to achieve the purposes of 
this subtitle and maintain prudent investment diversification.
    (3) Proceeds to a licensee derived from preferred securities issued 
under this section may be used by the issuer to redeem any preferred 
securities issued under this section that have been outstanding at 
least 5 years, as provided in subsection (b)(3).
    (4) Proceeds to a licensee derived from preferred securities issued 
under this section that have not been invested pursuant to paragraphs 
(1) and (2) or used for redemptions pursuant to paragraph (3) and are 
not reasonably needed for the operations of the licensee shall be 
invested in direct obligations of, or obligations guaranteed as to 
principal and interest by, the United States, or in certificates of 
deposit maturing within one year or less, issued by any institution the 
accounts of which are insured by the Federal Deposit Insurance 
Corporation.
    (e) Profit Distribution by Licensees.--(1) Any distribution of net 
realized earnings and returns of capital made by a licensee that 
exceeds amounts required for the purposes stated in paragraph (2) shall 
be distributed pro rata to all investors entitled to such 
distributions. The United States shall receive no funds under this 
paragraph.
    (2)(A) Except as provided in subparagraphs (B) and (C), any 
distribution of net realized earnings and returns of capital made by a 
licensee shall first be used to pay accumulated and unpaid dividends 
owed on outstanding preferred securities issued under this section and 
to satisfy the redemption requirements of subsection (b)(3).
    (B) For purposes of subparagraph (A), the redemption requirements 
of subsection (b)(3) shall be considered to be satisfied if necessary 
and appropriate actions, as determined by the Under Secretary, have 
been undertaken by the licensee to ensure that such requirements will 
be satisfied.
    (C) If a licensee is operating as a limited partnership or as a 
corporation described in subchapter S of chapter 1 of subtitle A of the 
Internal Revenue Code of 1986 or an equivalent pass-through entity for 
tax purposes, it may distribute to the partners or shareholders an 
amount equal to the estimated amount of Federal, State, and local 
income taxes due from such partners and shareholders on their share of 
undistributed taxable income for the current taxable year before 
payments described in subparagraph (A) are made.
    (f) Use of Payments to the United States.--Amounts received by the 
United States from the payment of dividends and the redemption of 
preferred securities pursuant to this section, and fees paid to the 
United States by a licensee pursuant to this subtitle, shall be 
deposited in an account established by the Under Secretary and shall be 
available solely for carrying out this subtitle, to the extent provided 
in advance in appropriations Acts.

SEC. 348. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

    (a) Authority To Issue Trust Certificates.--The Under Secretary is 
authorized to issue trust certificates representing ownership of all or 
a fractional part of preferred securities issued by licensees and 
guaranteed by the Under Secretary under this subtitle. Such trust 
certificates shall be based on and backed by a trust or pool approved 
by the Under Secretary and composed of preferred securities and such 
other contractual obligations as the Under Secretary may undertake to 
facilitate the sale of such trust certificates.
    (b) Guarantee of Trust Certificates.--The Under Secretary is 
authorized, upon such terms and conditions as are deemed appropriate, 
to guarantee the timely payment of the principal of and interest on 
trust certificates issued by the Under Secretary or his agent for 
purposes of this section. Such guarantee shall be limited to the extent 
of the redemption price of and dividends on the preferred securities, 
plus any related contractual obligations, which compose the trust or 
pool.
    (c) Prepayments and Redemptions.--In the event that preferred 
securities or contractual obligations in such trust or pool are 
redeemed or extinguished, either voluntarily or involuntarily, the 
guarantee of timely payment of principal and interest on the trust 
certificates shall be reduced in proportion to the amount of redemption 
price and dividends such redeemed preferred security or extinguished 
contractual obligation represents in the trust or pool. Dividends or 
partnership profit distributions on such preferred securities and 
related contractual obligations, shall accrue and be guaranteed by the 
Under Secretary only through the date of payment on the guarantee. 
During the term of the trust certificate, it may be called for 
redemption, whether voluntary or involuntary, of all preferred 
securities residing in the pool.
    (d) Fees.--The Under Secretary may collect fees for a guarantee 
under this section that are reasonable and customary.
    (e) Payment of Claims.--(1) In the event the Under Secretary pays a 
claim under a guarantee issued under this section, it shall be 
subrogated fully to the rights satisfied by such payment.
    (2) No State or local law, and no Federal law, shall preclude or 
limit the exercise by the Under Secretary of ownership rights in the 
preferred securities residing in a trust or pool against which trust 
certificates are issued.
    (f) Registration and Intermediary Operations.--(1) The Under 
Secretary shall provide for a central registration of all trust 
certificates sold pursuant to this section. Such central registration 
shall include with respect to each sale, identification of each 
licensee, the interest rate or dividend rate paid by the licensee, 
commissions, fees, or discounts paid to brokers and dealers in trust 
certificates, identification of each purchaser of the trust 
certificate, the price paid by the purchaser for the trust certificate, 
the interest rate paid on the trust certificate, the fees of any agent 
for carrying out the functions described in paragraph (2), and such 
other information as the Under Secretary deems appropriate.
    (2) The Under Secretary shall contract with an agent or agents to 
carry out on behalf of the Under Secretary the pooling and the central 
registration functions of this section including, notwithstanding any 
other provision of law, maintenance on behalf of and under the 
direction of the Under Secretary, such commercial bank accounts as may 
be necessary to facilitate trusts or pools backed by securities 
guaranteed or purchased under this subtitle, and the issuance of trust 
certificates to facilitate such poolings. Such agent or agents shall 
provide a fidelity bond or insurance in such amounts as the Under 
Secretary determines to be necessary to fully protect the interests of 
the Federal Government.
    (3) Prior to any sale, the Under Secretary shall require the seller 
to disclose to a purchaser of a trust certificate issued pursuant to 
this section, information on the terms, conditions, and yield of such 
instrument.

SEC. 349. VENTURE CAPITAL FOR QUALIFIED BUSINESS CONCERNS.

    Each licensee may provide venture capital to qualified business 
concerns, in such manner and under such terms as the licensee may fix 
in accordance with the regulations of the Under Secretary.

SEC. 350. OPERATION.

    (a) Cooperation.--Wherever practicable the operations of a 
licensee, including the generation of business, may be undertaken in 
cooperation with banks or other licensees, investors, or lenders, 
incorporated or unincorporated, and any servicing or initial 
investigation required for loans or acquisitions of securities by the 
licensee under the provisions of this subtitle may be handled through 
such banks or other licensees, investors, or lenders on a fee basis. 
Any licensee may receive fees for services rendered to such banks and 
other licensees, investors, and lenders.
    (b) Advisory Services.--Each licensee may make use, wherever 
practicable, of the advisory services of the Federal Reserve System and 
of the Department of Commerce which are available for and useful to 
industrial and commercial businesses, and may provide consulting and 
advisory services on a fee basis and have on its staff persons 
competent to provide such services. A licensee may not charge fees for 
such services that are provided to a qualified business concern in 
which it has an investment.

SEC. 351. REGULATIONS; LIABILITY.

    (a) Regulations.--The Under Secretary is authorized to prescribe 
regulations governing the operations of licensees, and to carry out the 
provisions of this subtitle, in accordance with the purposes of this 
subtitle.
    (b) Liability of the United States.--Nothing in this subtitle or in 
any other provision of law imposes any liability on the United States 
with respect to any obligations entered into, or stocks issued, or 
commitments made, by any licensee operating under the provisions of 
this subtitle.

SEC. 352. TECHNICAL ASSISTANCE FOR LICENSEES AND QUALIFIED BUSINESS 
              CONCERNS.

    (a) Technical Assistance.--The Secretary shall, upon request, 
provide technical assistance and services, as appropriate and needed, 
to licensees and to qualified business concerns receiving financial 
assistance under this subtitle, and shall ensure that such qualified 
business concerns have ready access to appropriate assistance available 
under title III of the Stevenson-Wydler Technology Innovation Act of 
1980, or under any other Act, in order to aid such qualified business 
concerns in their development or utilization of critical or other 
advanced technologies. Technical assistance and services under this 
subsection shall include providing licensees and qualified business 
concerns with--
            (1) an assessment of the technological and scientific 
        feasibility of a project, or an analysis of a specific field of 
        technical or scientific endeavor;
            (2) improved access to technology developed by the 
        Institute and assistance in obtaining access to technology 
        developed by other Federal agencies and laboratories;
            (3) expert analysis of the economics of technology 
        development undertaken by a qualified business concern; and
            (4) any other assistance or service that the Under 
        Secretary determines, after consultation with licensees and 
        qualified business concerns, is necessary and appropriate to 
        enhance prospects for success and to reduce technical risk for 
        licensees and qualified business concerns.
    (b) Fees.--The Secretary may charge fees for services and technical 
assistance provided under subsection (a) in amounts sufficient to cover 
the reasonable cost of such services and assistance. The Secretary may 
waive fees established under this subsection.

SEC. 353. PERFORMANCE MEASURES; ANNUAL REPORT.

    (a) Performance Measures.--The performance of the program 
established under this subtitle shall be evaluated relative to progress 
made in achieving its purposes and shall be measured in relevant and 
meaningful terms such as significant accomplishments in advancing 
technology, businesses formed and financed, jobs created, taxes 
generated, licenses granted and maintained, capital invested, and other 
criteria the Under Secretary may deem appropriate.
    (b) Annual Report.--The Under Secretary shall prepare, in 
consultation with the advisory committee established under section 344, 
and submit annually a report to the Congress containing a full and 
detailed account of operations under this subtitle. Such report shall 
include--
            (1) an assessment of progress made in achieving the 
        purposes of this subtitle;
            (2) performance measures established under subsection (a);
            (3) a list of licensees along with their location, area of 
        operations, investment objectives, capitalization, and net 
        asset value, both at cost and at current fair market value;
            (4) an audit setting forth the amount, type, recipient, and 
        source of disbursements, receipts, and losses sustained by the 
        Federal Government as a result of operations under this 
        subtitle during the preceding fiscal year and since inception 
        of the program;
            (5) the Under Secretary's plans to ensure the provision of 
        licensee financing to all areas of the country and to all 
        qualified business concerns, and plans to notify and to 
        encourage and facilitate the participation of qualified 
        business concerns as required by section 343(e), including 
        steps taken to accomplish those goals;
            (6) steps taken by the Under Secretary to carry out this 
        subtitle and to ensure compliance with statutory and regulatory 
        standards relating thereto; and
            (7) recommendations with respect to program changes, 
        statutory changes, and other matters, including tax incentives, 
        to improve and facilitate the operations of licensees and to 
        encourage the use of their financing facilities by qualified 
        business concerns.

SEC. 354. REPORTS, INVESTIGATIONS, AND EXAMINATIONS.

    (a) Reporting Requirements.--Each license issued under this 
subtitle shall require a licensee with outstanding preferred securities 
to provide the Under Secretary such information, including companies 
financed, disbursements made along with associated terms and 
conditions, receipts, portfolio valuation and net asset value at cost 
and at estimated fair market value, and other financial statements, 
that the Under Secretary may require to satisfy the requirements of 
section 353(b) and to determine, in a timely manner, compliance with 
this subtitle and regulations promulgated under this subtitle. Such 
reporting shall be--
            (1) except as otherwise provided in this subsection, 
        consistent with the reporting practices and standards of the 
        venture capital industry;
            (2) uniform for all licensees;
            (3) submitted annually to the Under Secretary, with 
        valuation and other information provided more frequently as the 
        Under Secretary may require; and
            (4) certified by the Board of Directors or the General 
        Partners of the licensee.
The Under Secretary may exempt from making such reports any licensee 
which is registered under the Investment Company Act of 1940 only to 
the extent necessary to avoid duplication in reporting requirements.
    (b) Valuations.--The Under Secretary shall, by regulation, 
establish guidelines for estimating the fair market value of 
investments held by a licensee as required under subsection (a). The 
board of directors of a corporate licensee and the general partners of 
a partnership licensee shall have the sole responsibility for making a 
good faith determination of the fair market value of investments held 
by such licensee, based on guidelines established under this 
subsection.
    (c) Investigations.--The Secretary may undertake investigations to 
determine whether a licensee or any other person has engaged or is 
about to engage in any acts or practices which constitute or will 
constitute a violation of any provision of this subtitle, or of any 
rule, regulation, or order issued under this subtitle. The Secretary 
shall permit any person to file a statement in writing, under oath or 
otherwise as the Secretary shall determine, as to all the facts and 
circumstances concerning the matter to be investigated. For the purpose 
of any investigation, the Secretary is empowered to administer oaths 
and affirmations, subpoena witnesses, compel their attendance, take 
evidence, and require the production of any books, papers, and 
documents which are relevant to the inquiry.
    (d) Examinations.--Each licensee shall be subject to examinations 
made at the discretion and direction of the Under Secretary by 
examiners selected or approved by, and under the supervision of, the 
Under Secretary. The Under Secretary may enter into contracts with 
private parties to perform such examinations. The cost of such 
examinations, including the compensation of the examiners, may in the 
discretion of the Under Secretary be assessed against the licensee 
examined and when so assessed shall be paid by such licensee.

SEC. 355. REVOCATION AND SUSPENSION OF LICENSES; CEASE AND DESIST 
              ORDERS.

    (a) Grounds for Revocation or Suspension.--A license may be revoked 
or suspended by the Secretary--
            (1) for willful or repeated violation of any provision of 
        this subtitle or any rule, regulation, or order issued 
        thereunder; or
            (2) if the licensee no longer serves the purposes for which 
        it was granted a license.
    (b) Cease and Desist Orders.--Where a licensee or any other person 
has not complied with any provision of this subtitle, or of any rule, 
regulation, or order issued thereunder, or is engaging or is about to 
engage in any acts or practices which constitute or will constitute a 
violation of such provision, rule, regulation, or order, the Secretary 
may order such licensee or other person to cease and desist from such 
action or failure to act. The Secretary may further order such licensee 
or other person to take such action or to refrain from such action as 
the Secretary considers necessary to ensure compliance with such 
provisions, rules, regulations, or orders. The Secretary may also 
suspend the license of a licensee, against whom an order has been 
issued, until such licensee complies with such order.
    (c) Subpoenas.--The Secretary may require by subpoenas the 
attendance and testimony of witnesses and the production of all books, 
papers, and documents relating to the hearing from any place in the 
United States.
    (d) Enforcement.--If any licensee or other person against which or 
against whom an order is issued under this section fails to obey the 
order, the Secretary may apply to the district court of the United 
States for the district where the licensee has its principal place of 
business, for the enforcement of the order.

SEC. 356. INJUNCTIVE RELIEF.

    (a) In General.--If the Secretary determines that a licensee or any 
other person has engaged, or is about to engage, in any acts or 
practices which constitute a violation of any provision of this 
subtitle, or of any rule, regulation, or order issued under this 
subtitle, the Secretary may apply to the appropriate district court of 
the United States for injunctive relief.
    (b) Receivership.--Whenever it is necessary in order to achieve the 
purposes of injunctive relief granted under subsection (a), and upon 
proper application by the Secretary, the court may order the attachment 
of assets of a licensee and may appoint a receiver to administer such 
assets under the direction of the court.

SEC. 357. CONFLICTS OF INTEREST.

    For the purpose of controlling conflicts of interest which may be 
detrimental to qualified business concerns, to licensees, to the 
shareholders or partners of either, or to the purposes of this 
subtitle, the Under Secretary shall adopt regulations to govern 
transactions with any officer, director, shareholder, or partner of any 
licensee, or with any person or concern, in which any interest, direct 
or indirect, financial or otherwise, is held by any officer, director, 
shareholder, or partner of (1) any licensee, or (2) any person or 
concern with an interest, direct or indirect, financial or otherwise, 
in any licensee. Such regulations shall include appropriate 
requirements for public disclosure (including disclosure in the 
locality most directly affected by the transaction) necessary to the 
purposes of this section.

SEC. 358. REMOVAL OR SUSPENSION OF DIRECTORS AND OFFICERS.

    (a) Grounds.--The Secretary, after an opportunity for agency 
hearing, may serve upon any director or officer of a licensee a written 
notice of its intention to remove such director or officer from office, 
temporarily or permanently, whenever in the opinion of the Secretary 
such director or officer--
            (1) has willfully and knowingly--
                    (A) committed any substantial violation of this 
                subtitle or any rule, regulation, or order issued under 
                this subtitle; or
                    (B) committed or engaged in any act, omission, or 
                practice which constitutes a substantial breach of his 
                fiduciary duty as such director or officer,
        and that such violation or such breach of fiduciary duty is one 
        involving personal dishonesty on the part of such director or 
        officer; or
            (2) has been convicted of a felony involving dishonesty or 
        breach of trust.
    (b) Hearing.--A hearing under this section shall be on the record 
and shall be held in the Federal judicial district or in the territory 
in which the principal office of the licensee is located unless the 
party afforded the hearing consents to another place. A hearing under 
this section shall be fixed for a date not earlier than 30 days nor 
later than 60 days after the date of service of such notice, unless an 
earlier or a later date is set by the Secretary at the request of (1) 
such director or officer and for good cause shown, or (2) the Attorney 
General of the United States. Unless such director or officer shall 
appear at the hearing in person or by a duly authorized representative, 
he shall be deemed to have consented to the issuance of an order of 
such removal.

SEC. 359. VIOLATIONS.

    (a) Participation.--Whenever a licensee commits a violation of this 
subtitle, or any rule, regulation, or order issued under this subtitle, 
such violation shall be deemed to be also a violation on the part of 
any person who, directly or indirectly, authorizes, orders, 
participates in, or causes, brings about, counsels, aids, or abets in 
the commission of such violation.
    (b) Breach of Fiduciary Duty.--It shall be a violation of this 
subtitle for any officer, director, employee, agent, or other 
participant in the management or conduct of the affairs of a licensee 
to engage in any act or practice, or to omit any act, in breach of his 
fiduciary duty as such officer, director, employee, agent, or 
participant, if, as a result thereof, the licensee has suffered or is 
in imminent danger of suffering financial loss or other damage.
    (c) Disqualification.--Except with the written consent of the 
Secretary, it shall be a violation of this subtitle for any person to 
take office, or to continue to serve, as an officer, director, or 
employee of a licensee, or to become or continue to serve as an agent 
or participant in the conduct of the affairs or management of a 
licensee, if such person--
            (1) has been convicted of a felony, or any other criminal 
        offense involving dishonesty or breach of trust; or
            (2) has been found civilly liable in damages, or has been 
        permanently or temporarily enjoined by an order, judgment, or 
        decree of a court of competent jurisdiction, by reason of any 
        act or practice involving fraud or breach of trust.

SEC. 360. CIVIL PENALTIES.

    Any person who is found by the Secretary, after notice and 
opportunity to be heard on the record in accordance with section 554 of 
title 5, United States Code, to have committed a violation of this 
subtitle or any rule, regulation, or order issued under this subtitle 
shall be liable to the United States for a civil penalty of not more 
than $1,000 for each violation. Each day of a continuing violation 
shall constitute a separate violation. The amount of such civil penalty 
shall be assessed by the Secretary by written notice. The Secretary may 
compromise, modify, or remit, with or without conditions, any civil 
penalty which is subject to imposition or which has been imposed under 
this section.

SEC. 361. ANTITRUST SAVINGS CLAUSE.

    This subtitle shall not be construed to modify, impair, or 
supersede the operation of the antitrust laws. For purposes of this 
section, the term ``antitrust laws'' has the meaning given it in 
subsection (a) of the first section of the Clayton Act (15 U.S.C. 
12(a)), except that such term includes the Act of June 19, 1936 (49 
Stat. 1526; 15 U.S.C. 13 et seq.), commonly known as the Robinson 
Patman Act, and section 5 of the Federal Trade Commission Act (15 
U.S.C. 45) to the extent that such section 5 applies to unfair methods 
of competition.

                        TITLE IV--MISCELLANEOUS

SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY ADVISORY BOARD.

    (a) Establishment.--There is established a Department of Commerce 
Technology Advisory Board (in this section referred to as the 
``Advisory Board'') to assist the Technology Administration in the 
performance of its functions.
    (b) Composition.--The Advisory Board shall be composed of at least 
17 members, appointed by the Under Secretary from among individuals 
who, because of their experience and accomplishments are exceptionally 
qualified to provide advice to the Under Secretary on the plans, 
programs, and policy of the Technology Administration. The Under 
Secretary shall make an effort to ensure the appointment of socially 
and economically disadvantaged individuals (within the meaning of 
section 8(a) (5) and (6) of the Small Business Act, and including 
women) to the Advisory Board. The Under Secretary shall designate 1 
member to chair the Advisory Board. Membership of the Advisory Board 
shall include representatives of--
            (1) United States small businesses;
            (2) other United States manufacturers;
            (3) research universities and independent research 
        institutes;
            (4) State and local government agencies involved in 
        technology extension;
            (5) national laboratories;
            (6) industrial, worker, and professional organizations;
            (7) financial organizations; and
            (8) computing and communications equipment and services 
        providers.
    (c) Duties.--The duties of the Advisory Board shall include 
advising the Secretary, the Under Secretary, and the Director 
regarding--
            (1) the development of policies and options for 
        implementation that the Advisory Board considers essential to 
        technology creation, development, and adoption, including 
        policies that would benefit small businesses;
            (2) the development and rapid application of critical and 
        other advanced technologies, including advanced manufacturing 
        technologies;
            (3) the development of computer and communications support 
        services for advanced manufacturing; and
            (4) the planning, execution, and evaluation of programs 
        under the authority of the Technology Administration.
    (d) Meetings.--(1) The chairman shall call the first meeting of the 
Advisory Board not later than 90 days after the date of enactment of 
this Act.
    (2) The Advisory Board shall meet at least once every 6 months, and 
at the call of the Under Secretary.
    (e) Travel Expenses.--Members of the Advisory Board, other than 
full-time employees of the United States, shall be allowed travel 
expenses in accordance with subchapter I of chapter 57 of title 5, 
United States Code, while engaged in the business of the Advisory 
Board.
    (f) Consultation.--In carrying out this section, the Under 
Secretary shall consult with other agencies, as appropriate.
    (g) Termination.--Section 14 of the Federal Advisory Committee Act 
shall not apply to the Advisory Board.
    (h) Secretarial Discretion.--Notwithstanding any other provision of 
this section, the Secretary shall have the discretion to decide whether 
to establish the Advisory Board or create a more cost-effective way to 
achieve the goal of closer cooperation with industry. If the Secretary 
exercises such discretion and establishes an alternative mechanism, the 
Under Secretary shall make an effort to ensure the participation of 
socially and economically disadvantaged individuals (within the meaning 
of section 8(a)(5) and (6) of the Small Business Act, and including 
women) in the alternative mechanism.

SEC. 402. INTERNATIONAL STANDARDIZATION.

    (a) Findings.--The Congress finds that--
            (1) private sector consensus standards are essential to the 
        timely development of competitive products;
            (2) Federal Government contribution of resources and more 
        active participation in the voluntary standards process in the 
        United States can increase the quality of United States 
        standards, increase their compatibility with the standards of 
        other countries, and ease access of products manufactured by 
        United States manufacturers to foreign markets; and
            (3) the Federal Government, working in cooperation with 
        private sector organizations including trade associations, 
        engineering societies, and technical bodies, can effectively 
        promote United States Government use of United States consensus 
        standards and, where appropriate, the adoption and United 
        States Government use of international standards.
    (b) Standard Pilot Program.--Section 104(e) of the American 
Technology Preeminence Act of 1991 is amended--
            (1) by inserting ``(1)'' before ``Pursuant to the'';
            (2) by striking ``matching funds'' and inserting in lieu 
        thereof ``financial contributions deemed appropriate by the 
        Secretary''; and
            (3) by adding at the end the following new paragraph:
    ``(2) As necessary and appropriate, the Institute shall expand the 
program established under section 112 of the National Institute of 
Standards and Technology Authorization Act for Fiscal Year 1989 (15 
U.S.C. 272 note) by extending the existing program to include other 
countries that request assistance with standards-related activities 
from official representatives of the United States Government. The 
Institute may enter into additional contracts with non-Federal 
organizations representing United States companies, as such term is 
defined in section 28(d)(9)(B) of the National Institute of Standards 
and Technology Act (15 U.S.C. 278n(d)(9)(B)) or with United States-
based professional societies who participate in the development of 
standards. Such contracts shall require cost sharing between Federal 
and non-Federal sources for such purposes. In awarding such contracts, 
the Institute shall seek to promote and support the dissemination of 
United States technical standards to additional foreign countries and 
shall seek, as the Director deems appropriate, to promote the adoption 
of international standards supported by United States industry, and 
shall seek to assist private sector professional societies which 
participate in the development of standards in expediting the 
development of domestic standards which enable the introduction of 
technologies, products, or technology-based services which are being 
delayed due to the lack of available standards. The Institute and such 
contractors shall, in carrying out the preceding sentence, cooperate 
with governmental bodies, private organizations including standards 
setting organizations and industry, and multinational institutions that 
promote economic development. The organizations receiving such 
contracts may establish training programs to bring to the United States 
foreign standards experts for the purpose of receiving in-depth 
training in the United States standards system.''.
    (c) Report on Standards.--(1) Section 508(a) of the American 
Technology Preeminence Act of 1991 (15 U.S.C. 3701 note) is amended--
            (A) by inserting ``standards development and 
        international'' after ``a thorough review of international'';
            (B) by redesignating paragraphs (1) through (5) as 
        paragraphs (2) through (6), respectively; and
            (C) by inserting before paragraph (2), as so redesignated 
        by subparagraph (B) of this paragraph, the following new 
        paragraph:
            ``(1) Current and potential future roles of the Federal 
        Government in the development and promulgation of domestic and 
        global product and process standards.''.
    (2) The Secretary, in consultation with the Institute and the 
Department of Commerce Technology Advisory Board established under 
section 401 of this Act and with, as appropriate, the active 
participation of the private sector, shall submit to the Congress a 
report describing the appropriate roles of the Department of Commerce 
in aid to United States companies in achieving conformity assessment 
and accreditation and otherwise qualifying their products in foreign 
markets, through the development and promulgation of domestic and 
global product and quality standards, and through the implementation of 
conformity assessment and accreditation procedures based upon such 
standards, including a discussion of the extent to which each of the 
policy options provided in the March 1992 Office of Technology 
Assessment report, entitled ``Global Standards'', contributes to 
meeting the goals of--
            (A) increasing the international adoption of standards 
        beneficial to United States industries; and
            (B) improving the coordination of United States 
        representation to international standards setting bodies.
    (3) The report shall also describe emerging product and market 
areas which can be assisted by shortening the time required for the 
development of standards and make recommendations on contributions the 
Department of Commerce can make to improving the timeliness of 
standards development.

SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.

    (a) Section 108(c)(3) of the Stevenson-Wydler Technology Innovation 
Act of 1980, as so redesignated by section 206(b)(3) of this Act, is 
amended to read as follows:
    ``(3) No award shall be made within any category or subcategory if 
there are no qualifying enterprises in that category or subcategory.''.
    (b)(1) Section 108(c)(1) of the Stevenson-Wydler Technology 
Innovation Act of 1980, as so redesignated by section 206(b)(3) of this 
Act, is amended by adding at the end the following new subparagraph:
            ``(D) Educational institutions.''.
    (2)(A) Within 1 year after the date of enactment of this Act, the 
Secretary shall submit to the Congress a report containing--
            (i) criteria for qualification for a Malcolm Baldrige 
        National Quality Award by various classes of educational 
        institutions;
            (ii) criteria for the evaluation of applications for such 
        awards under section 108(d)(1) of the Stevenson-Wydler 
        Technology Innovation Act of 1980, as so redesignated by 
        section 206(b)(3) of this Act; and
            (iii) a plan for funding awards described in clause (i).
    (B) In preparing the report required under subparagraph (A), the 
Secretary shall consult with the National Science Foundation and other 
public and private entities with appropriate expertise, and shall 
provide for public notice and comment.
    (C) The Secretary shall not accept applications for awards 
described in subparagraph (A)(i) until after the report required under 
subparagraph (A) is submitted to the Congress.

SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.

    Section 202 of the Stevenson-Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3710a), as redesignated by section 206(b)(5) of this 
Act, is amended--
            (1) in subsection (d)(1), by inserting ``(including both 
        real and personal property)'' after ``or other resources'' both 
        places it appears; and
            (2) in subsection (d)(2)(A), by inserting ``including 
        Federal test and evaluation facilities,'' after ``by a Federal 
        agency,''.

SEC. 405. COMPETITIVENESS ASSESSMENTS AND EVALUATIONS.

    Section 101(e) of the Stevenson-Wydler Technology Innovation Act of 
1980, as so redesignated by section 206(b)(2) of this Act, is amended 
to read as follows:
    ``(e) Competitiveness Assessments and Evaluations.--(1) The 
Secretary, through the Under Secretary, shall--
            ``(A) provide for the conduct of research and analyses to 
        advance knowledge of the ways in which the economic 
        competitiveness of United States companies can be enhanced 
        through Federal programs established under the National 
        Competitiveness Act of 1993 or the amendments made by that Act; 
        and
            ``(B) as appropriate, provide for evaluations of Federal 
        technology programs established or expanded under the National 
        Competitiveness Act of 1993 or the amendments made by that Act 
        in order to judge their effectiveness and make recommendations 
        to improve their contribution to United States competitiveness.
    ``(2) All executive departments and agencies shall assist the 
Secretary in carrying out this section as appropriate.
    ``(3) Nothing in this section shall authorize the release of 
information to, or the use of information by, the Secretary or Under 
Secretary in a manner inconsistent with law or any procedure 
established pursuant thereto.
    ``(4) The head of any Federal agency may detail such personnel and 
may provide such services, with or without reimbursement, as the 
Secretary may request to assist in carrying out the activities required 
under this section.''.

SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECHNOLOGIES.

    Within 9 months after the date of enactment of this Act, the 
Critical Technologies Institute (in this section referred to as the 
``Institute'') established under section 822 of the National Defense 
Authorization Act for Fiscal Year 1991 shall, after consultation with 
the private sector and appropriate officials from other Federal 
agencies, submit to Congress a report on advanced lithography 
technologies for the production of semiconductor devices. The report 
shall include the Institute's evaluation of the likely technical and 
economic advantages and disadvantages of each such technology, an 
analysis of current private and Government research to develop each 
such technology, and any recommendations the Institute may have 
regarding future Federal support for research and development in 
advanced lithography.

SEC. 407. AMERICAN WORKFORCE QUALITY PARTNERSHIPS.

    (a) Amendment.--Title III of the Stevenson-Wydler Technology 
Innovation Act of 1980, as added by title II of this Act, is further 
amended by adding at the end the following new section:

``SEC. 305. AMERICAN WORKFORCE QUALITY PARTNERSHIPS.

    ``(a) Program Authorized.--The Secretary may make grants to 
establish and operate American workforce quality partnership programs 
in accordance with the provisions of this section. The Secretary shall 
award grants on a competitive basis to pay the Federal share for 
American workforce quality partnership programs to establish workforce 
training consortia between industry and institutions of higher 
education.
    ``(b) Grant Period.--Grants awarded under this section may be for a 
period of 5 years.
    ``(c) General Authority.--Each grant recipient shall use amounts 
provided under the grant to develop and operate an American workforce 
quality partnership program.
    ``(d) Contents of Program.--An American workforce quality 
partnership program shall establish partnerships among--
            ``(1) one or more United States manufacturers;
            ``(2) an organization or organizations representing the 
        nonmanagerial employees of the manufacturers described in 
        paragraph (1); and
            ``(3) a local community technical college or other 
        appropriate institutions of higher education, a vocational 
        training institution, a Regional Center for the Transfer of 
        Manufacturing Technology, a Manufacturing Outreach Center, or 
        any similar entity or consortium of such institutions,
to train the employees of the industrial partners through both 
workplace-based and classroom-based programs of training.
    ``(e) Federal Share.--The Federal share of the cost of an American 
workforce quality partnership program may not exceed 50 percent of the 
total cost of the program. The non-Federal share of such costs may be 
provided in-cash or in-kind, fairly valued. The total contribution of 
the proposed partnership should reflect a substantial contribution on 
the part of the industrial partners and appropriate contributions of 
the education partners, local or State governments, and other 
appropriate entities.
    ``(f) Applications.--
            ``(1) Eligibility.--Any consortium described in subsection 
        (d) may apply for a grant under this section at such time and 
        in such manner as the Secretary shall prescribe.
            ``(2) Plan.--Each application submitted under this 
        subsection shall contain a plan for the development and 
        implementation of an American workforce quality partnership 
        program under this section. Such plan shall--
                    ``(A) show a demonstrated commitment, on the part 
                of the industrial partners, to adopt total quality 
                management strategies or other plausible strategies to 
                renew its competitive edge;
                    ``(B) demonstrate the need for Federal resources 
                because of the long-term nature and risk of such an 
                investment, the inability to finance such ventures 
                because of the high cost of capitalization, intense 
                competition from foreign industries, or such other 
                appropriate reasons as may limit the industrial 
                partners' ability to launch programs where worker 
                training and development is a substantial component;
                    ``(C) demonstrate long-term benefit for all 
                partners and the local economy, through an enhanced 
                competitive position of the industrial partners, 
                substantial benefits for regional employment, and the 
                ability of the education and labor participants to 
                further their capabilities to educate and train other 
                nonpartnership-affiliated individuals wishing to obtain 
                or upgrade technical, technological, industrial 
                management and leadership, or other industrial skills;
                    ``(D) make full, appropriate, and innovative use of 
                industrial and higher education resources and other 
                local resources such as facilities, equipment, 
                personnel exchanges, experts, or consultants;
                    ``(E) provide for the establishment of an advisory 
                board in accordance with subsection (h);
                    ``(F) include an explanation of the industrial 
                partners' plans to adopt new competitive strategies and 
                how the training partnership aids that effort; and
                    ``(G) include assurances that the eligible entity 
                will maintain its aggregate expenditures from all 
                sources for employee training, other than those 
                provided under this section, at or above the average 
                level of such expenditures in the 2 fiscal years 
                preceding submission of an application for assistance 
                under this section.
            ``(3) Approval.--
                    ``(A) In general.--The Secretary shall approve 
                applications based on their potential to create an 
                effective American workforce quality partnership 
                program in accordance with this section.
                    ``(B) Criteria.--In reviewing grant applications, 
                the Secretary shall give significant consideration to 
                the following criteria:
                            ``(i) Saliency of argument for requiring a 
                        Federal investment.
                            ``(ii) Commitment of partnership to 
                        continue operation after the termination of 
                        Federal funding.
                            ``(iii) The likelihood that the training 
                        will improve the long-term competitiveness of 
                        the industrial partners and contribute 
                        significantly to economic growth.
                            ``(iv) The likelihood that the partnership 
                        will benefit the education mission of the 
                        education partners in ways outside of the scope 
                        of the partnership, such as developing the 
                        capability to train other nonpartnership-
                        affiliated individuals in similar skills.
                    ``(C) Priority consideration.--The Secretary shall 
                give priority consideration to industries which are 
                threatened by intense foreign competition important to 
                the long-term national economic or military security of 
                the United States and industries which are critical in 
                enabling other United States industries to maintain a 
                healthy competitive position. In addition, the 
                Secretary shall give priority to applicants in areas of 
                high poverty and unemployment.
    ``(g) Use of Funds.--
            ``(1) Approved uses.--Federal funds may be used for--
                    ``(A) the direct costs of workplace-based and 
                classroom-based training in advanced technical, 
                technological, and industrial management, skills, and 
                training for the implementation of total quality 
                management and technology management strategies, or 
                other competitiveness strategies, contained in the 
                applicant's plan submitted under subsection (f)(2)(F);
                    ``(B) the purchase or lease of equipment or other 
                materials for the purpose of instruction to aid in 
                training;
                    ``(C) the development of in-house curricula or 
                coursework or other training-related programs, 
                including the training of teachers and other eligible 
                participants to utilize such curricula or coursework; 
                and
                    ``(D) reasonable administrative expenses and other 
                indirect costs of operating the partnership which may 
                not exceed 10 percent of the total cost of the program.
            ``(2) Limitations.--Federal funds may not be used for 
        nontraining related costs of adopting new competitive 
        strategies including the replacement of manufacturing 
        equipment, product redesign and manufacturing facility 
        construction costs, or salary compensation of the partners' 
        employees. Grants shall not be made under this section for 
        programs that will impair any existing program, contract, or 
        agreement without the written concurrence of the parties to 
        such program, contract, or agreement.
    ``(h) Advisory Board.--
            ``(1) Each partnership shall establish an advisory board 
        which shall include representation from each of the following 
        categories:
                    ``(A) Multiple organizational levels of the 
                industrial partners, that shall include managerial 
                employees.
                    ``(B) The education partners.
                    ``(C) Organizations representing nonmanagerial 
                employees.
            ``(2) The advisory board shall--
                    ``(A) advise the partnership on the general 
                direction and policy of the partnership including 
                training, instruction, and other related issues;
                    ``(B) report to the Secretary after the second and 
                fourth year of the program, on the progress and status 
                of the partnership, including its strengths, 
                weaknesses, and new directions, the number of 
                individuals served, types of services provided, and an 
                outline of how the program can be integrated into the 
                existing training infrastructure in place in other 
                Federal agencies and departments; and
                    ``(C) assist in the revision of the plans 
                (submitted with the application under subsection 
                (f)(2)(F)) and include revised plans as necessary in 
                the reports required under subparagraph (B).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1994.

SEC. 408. SEVERABILITY.

    If any provision of this Act or the amendments made by this Act, or 
the application thereof to any person or circumstance, is held invalid, 
the remainder of this Act and the amendments made by this Act, and the 
application thereof to other persons or circumstances, shall not be 
affected thereby.

SEC. 409. SUNSET.

    (a) Report to Congress.--Before April 1, 1995, the Secretary shall 
submit to the Congress a report that evaluates the success of the 
programs established by this Act, and the amendments made by this Act, 
in achieving the purposes of this Act.
    (b) Limitation on Appropriations.--Notwithstanding any other 
provision of this Act, no funds are authorized to be appropriated for 
any fiscal year after fiscal year 1995 for carrying out the programs 
for which funds are authorized by this Act, or the amendments made by 
this Act.

SEC. 410. USE OF DOMESTIC PRODUCTS.

    (a) Prohibition Against Fraudulent Use of ``Made in America'' 
Labels.--(1) A person shall not intentionally affix a label bearing the 
inscription of ``Made in America'', or any inscription with that 
meaning, to any product sold in or shipped to the United States, if 
that product is not a domestic product.
    (2) A person who violates paragraph (1) shall not be eligible for 
any contract for a procurement carried out with amounts authorized 
under this Act, or under any amendment made by this Act, including any 
subcontract under such a contract pursuant to the debarment, 
suspension, and ineligibility procedures in subpart 9.4 of chapter 1 of 
title 48, Code of Federal Regulations, or any successor procedures 
thereto.
    (b) Compliance With Buy American Act.--(1) Except as provided in 
paragraph (2), the head of each agency which conducts procurements 
shall ensure that such procurements are conducted in compliance with 
sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a through 
10c, popularly known as the ``Buy American Act'').
    (2) This subsection shall apply only to procurements made for 
which--
            (A) amounts are authorized by this Act, or by any amendment 
        made by this Act, to be made available; and
            (B) solicitations for bids are issued after the date of 
        enactment of this Act.
    (3) The Secretary, before January 1, 1995, shall report to the 
Congress on procurements covered under this subsection of products that 
are not domestic products.
    (c) Purchase of American Made Equipment and Products.--
            (1) Sense of congress.--It is the sense of Congress that 
        any recipient of a grant under this Act, or under any amendment 
        made by this Act, should purchase only American made equipment 
        and products when expending grant monies.
            (2) Notice to recipients of assistance.--In allocating 
        grants under this Act, or under any amendment made by this Act, 
        the Secretary shall provide to each recipient a notice 
        describing the statement made in paragraph (1) by the Congress.
    (d) Definitions.--For the purposes of this section, the term 
``domestic product'' means a product--
            (1) that is manufactured or produced in the United States; 
        and
            (2) at least 50 percent of the cost of the articles, 
        materials, or supplies of which are mined, produced, or 
        manufactured in the United States.

SEC. 411. NATIONAL QUALITY PROGRAM.

    (a) Establishment.--There is established, under the supervision of 
the Director, a National Quality Program (in this section referred to 
as the ``Program''). The purpose of the Program shall be to enhance the 
Malcolm Baldrige National Quality Award, to disseminate information, 
and to promote and take part in educational and research activities 
regarding ways in which United States companies and organizations can 
improve their quality management practices and productivity.
    (b) Activities.--As part of the Program, the Director is 
authorized--
            (1) to develop industry-led workshops, seminars, and other 
        mechanisms to disseminate broadly to United States companies 
        and organizations the best practices available in total quality 
        management, including the practices and quality improvement 
        strategies successfully employed by those firms that have won 
        the Malcolm Baldrige National Quality Award, as well as best 
        practices in lean production methods, market-driven product 
        improvement, and customer-supplier relations;
            (2) to work with industry leaders and others to develop 
        both measures of quality and recommendations concerning what 
        skills employees should have in order to participate 
        effectively in company quality programs; and
            (3) to explore, with private industry, other Federal 
        agencies, and State and local government, innovative ways in 
        which 2-year colleges and other educational institutions can 
        teach quality assurance techniques and related background 
        skills to industrial workers in both manufacturing and 
        services.

SEC. 412. DEFINITIONS.

    Title III of the Stevenson-Wydler Technology Innovation Act of 
1980, as added by title II and section 407 of this Act, is further 
amended by adding at the end the following new section:

``SEC. 306. DEFINITIONS.

    ``For purposes of this title and title IV--
            ``(1) the term `State' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States; and
            ``(2) the term `United States' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States.''.

SEC. 413. FASTENER QUALITY ACT AMENDMENTS.

    (a) References.--Whenever in this section an amendment is expressed 
in terms of an amendment to a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Fastener Quality Act (15 U.S.C. 5401 et seq.).
    (b) Technical Amendments.--
            (1) Definitions.--Section 3 (15 U.S.C. 5402) is amended--
                    (A) in paragraph (8), by striking ``Standard'' and 
                inserting in lieu thereof ``Standards''; and
                    (B) in paragraph (14), by striking ``which defines 
                or describes'' and all that follows through ``of any 
                fastener''.
            (2) Inspection and testing.--Section 5(b)(1) (15 U.S.C. 
        5404(b)(1)) is amended by striking ``section 6; unless'' and 
        inserting in lieu thereof ``section 6, unless''.
            (3) Importers and private label distributors.--Section 
        7(c)(2) (15 U.S.C. 5406(c)(2)) is amended by inserting ``to the 
        same'' before ``extent''.
    (c) Clarifying Amendments.--
            (1) Chemical tests.--(A) Section 5(a)(1)(B) (15 U.S.C. 
        5404(a)(1)(B)) is amended by striking ``subsections (b) and 
        (c)'' and inserting in lieu thereof ``subsections (b), (c), and 
        (d)''.
            (B) Section 5(a)(2)(A)(i) (15 U.S.C. 5404(a)(2)(A)(i)) is 
        amended by striking ``subsections (b) and (c)'' and inserting 
        in lieu thereof ``subsections (b), (c), and (d)''.
            (C) Section 5(c)(4) (15 U.S.C. 5404(c)(4)) is amended by 
        inserting ``except as provided in subsection (d),'' before 
        ``state''.
            (D) Section 5 (15 U.S.C. 5404) is amended by inserting at 
        the end the following new subsection:
    ``(d) Alternative Procedure for Chemical Characteristics.--
Notwithstanding the requirements of subsections (b) and (c), a 
manufacturer shall be deemed to have demonstrated, for purposes of 
subsection (a)(1), that the chemical characteristics of a lot conform 
to the standards and specifications to which the manufacturer 
represents such lot has been manufactured if the following requirements 
are met:
            ``(1) The coil or heat number of metal from which such lot 
        was fabricated has been inspected and tested with respect to 
        its chemical characteristics by a laboratory accredited in 
        accordance with the procedures and conditions specified by the 
        Secretary under section 6.
            ``(2) Such laboratory has provided to the manufacturer, 
        either directly or through the metal manufacturer, a written 
        inspection and testing report, which shall be in a form 
        prescribed by the Secretary by regulation, listing the chemical 
        characteristics of such coil or heat number.
            ``(3) The report described in paragraph (2) indicates that 
        the chemical characteristics of such coil or heat number 
        conform to those required by the standards and specifications 
        to which the manufacturer represents such lot has been 
        manufactured.
            ``(4) The manufacturer demonstrates that such lot has been 
        fabricated from the coil or heat number of metal to which the 
        report described in paragraphs (2) and (3) relates.
In prescribing the form of report required by subsection (c), the 
Secretary shall provide for an alternative to the statement required by 
subsection (c)(4), insofar as such statement pertains to chemical 
characteristics, for cases in which a manufacturer elects to use the 
procedure permitted by this subsection.''.

               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

SEC. 501. TECHNOLOGY ADMINISTRATION.

    There are authorized to be appropriated to the Secretary, to carry 
out the activities of the Under Secretary and the Assistant Secretary 
of Commerce for Technology Policy, in addition to any other amounts 
authorized for such purposes, for the Office of the Under Secretary--
            (1) $5,425,000 for fiscal year 1994; and
            (2) $10,000,000 for fiscal year 1995, of which $2,000,000 
        are authorized for competitiveness assessments and evaluations 
        under section 101(e) of the Stevenson-Wydler Technology 
        Innovation Act of 1980, as so redesignated by section 206(b)(2) 
        of this Act.

SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.

    (a) Intramural Scientific and Technical Research and Services.--(1) 
There are authorized to be appropriated to the Secretary, to carry out 
the intramural scientific and technical research and services 
activities of the Institute, $242,988,000 for fiscal year 1994 and 
$300,000,000 for fiscal year 1995.
    (2) Of the amounts authorized under paragraph (1)--
            (A) $1,000,000 for fiscal year 1994 and $1,000,000 for 
        fiscal year 1995 are authorized only for the evaluation of 
        nonenergy-related inventions;
            (B) $9,000,000 for fiscal year 1994 and $10,000,000 for 
        fiscal year 1995 are authorized only for the technical 
        competence fund; and
            (C) $2,000,000 for fiscal year 1994 and $3,000,000 for 
        fiscal year 1995 are authorized only for the standards pilot 
        project established under section 104(e) of the American 
        Technology Preeminence Act of 1991.
    (b) Transfers.--(1) Funds may be transferred among the line items 
listed in subsection (a), so long as--
            (A) the net funds transferred to or from any line item do 
        not exceed 10 percent of the amount authorized for that line 
        item in such subsection;
            (B) the aggregate amount authorized under subsection (a) is 
        not changed; and
            (C) the Committee on Commerce, Science, and Transportation 
        of the Senate and the Committee on Science, Space, and 
        Technology of the House of Representatives are notified in 
        advance of any such transfer.
    (2) The Secretary may propose transfers to or from any line item 
listed in subsection (a) exceeding 10 percent of the amount authorized 
for such line item, but such proposed transfer may not be made unless--
            (A) a full and complete explanation of any such proposed 
        transfer and the reason therefor are transmitted in writing to 
        the Speaker of the House of Representatives, the President of 
        the Senate, and the appropriate authorizing Committees of the 
        House of Representatives and the Senate; and
            (B) 30 days have passed following the transmission of such 
        written explanation.
    (c) Facilities Construction.--There are authorized to be 
appropriated to the Secretary, to carry out construction and 
modernization of Institute facilities, $61,686,000 for fiscal year 1994 
and $106,000,000 for fiscal year 1995.

SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY ADMINISTRATION.

    (a) Fiscal Year 1994.--In addition to the amounts authorized under 
sections 501 and 502, there are authorized to be appropriated to the 
Secretary for fiscal year 1994--
            (1) for Regional Centers for the Transfer of Manufacturing 
        Technology, for the National Technology Outreach Program 
        established under section 303 of the Stevenson-Wydler 
        Technology Innovation Act of 1980, and for the National Quality 
        Program established under section 410 of this Act, $30,035,000;
            (2) for the State Technology Extension Program, $3,000,000;
            (3) for the Advanced Technology Program $193,489,000, of 
        which $20,000,000 is authorized for the Advanced Manufacturing 
        Technology Development Program established under section 304 of 
        the Stevenson-Wydler Technology Innovation Act of 1980;
            (4) for the Civilian Technology Loan Program established 
        under subtitle C of title III of this Act, $1,000,000;
            (5) for the Civilian Technologies Development Program 
        established under subtitle D of title III of this Act, 
        $1,000,000; and
            (6) for carrying out the Benchmarking Program established 
        under title IV of the Stevenson-Wydler Technology Innovation 
        Act of 1980, $2,000,000.
    (b) Fiscal Year 1995.--In addition to the amounts authorized under 
subsection (a), there are authorized to be appropriated to the 
Secretary for fiscal year 1995, to carry out the other activities of 
the Technology Administration, including the extramural industrial 
technology services activities of the Institute and the Advanced 
Technology Program, $534,000,000, of which--
            (1) not more than $150,000,000 shall be for the Regional 
        Centers for the Transfer of Manufacturing Technology and the 
        National Technology Outreach Program established under section 
        303 of the Stevenson-Wydler Technology Innovation Act of 1980;
            (2) not more than $3,000,000 shall be for the National 
        Quality Program established under section 410 of this Act;
            (3) not more than $3,000,000 shall be for the State 
        Technology Extension Program;
            (4) not more than $50,000,000 shall be for the Advanced 
        Manufacturing Technology Development Program established under 
        section 304 of the Stevenson-Wydler Technology Innovation Act 
        of 1980;
            (5) not more than $20,000,000 shall be for the Civilian 
        Technology Loan Program established under subtitle C of title 
        III of this Act;
            (6) not more than $50,000,000 shall be for the Civilian 
        Technologies Development Program established under subtitle D 
        of title III of this Act;
            (7) not more than $10,000,000 shall be for carrying out the 
        Benchmarking Program established under title IV of the 
        Stevenson-Wydler Technology Innovation Act of 1980; and
            (8) not more than $50,000,000 shall be for carrying out the 
        American workforce quality partnership program established 
        under section 305 of the Stevenson-Wydler Technology Innovation 
        Act of 1980.
    (c) Administrative Expenses; Audits.--Of the amounts made available 
under subsection (a)(4), not more than $2,000,000 or 10 percent, 
whichever is greater, shall be available for administrative expenses. 
Of the amounts made available under subsection (b)(5), not more than 
$5,000,000 or 10 percent, whichever is greater, shall be available for 
administrative expenses. The Secretary shall ensure that audits are 
performed by independent auditors on the programs for which funds are 
appropriated pursuant to this section. The summary results of such 
audits shall be submitted to the Congress by the end of each of the 
fiscal years 1994 and 1995, and not more than $2,000,000, or 2 percent 
of the aggregate amount made available under such section and 
subsection, whichever is greater, shall be used in each such fiscal 
year for performing the audits.

SEC. 504. NATIONAL SCIENCE FOUNDATION.

    In addition to such other sums as may be authorized by other Acts 
to be appropriated to the Director of the National Science Foundation, 
there are authorized to be appropriated to that Director--
            (1) for carrying out section 212 of this Act, $20,000,000 
        for fiscal year 1995; and
            (2) for carrying out section 213 of this Act, $30,000,000 
        for fiscal year 1995.

SEC. 505. AVAILABILITY OF APPROPRIATIONS.

    Except as otherwise provided in this title, appropriations made 
under the authority provided in this title shall remain available for 
obligation until expended.

SEC. 506. PROHIBITIONS.

    None of the funds made available in this Act may be used to provide 
any direct Federal financial benefit to any person who is not (1) a 
citizen or national of the United States; (2) an alien lawfully 
admitted for permanent residence; or (3) an alien granted legal status 
as a parolee, asylee, or refugee.

            Passed the House of Representatives May 19, 1993.

            Attest:

                                           DONNALD K. ANDERSON,

                                                                 Clerk.

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