103D CONGRESS

2D SESSION H. R. 820

AMENDMENT
In the Senate of the United States,

March 16 (legislative day, February 22), 1994.

Resolved, That the bill from the House of Representatives (H.R. 820) entitled ‘‘An Act to amend the StevensonWydler 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’’, do pass

with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 TITLE I—GENERAL PROVISIONS

2 SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.

3 (a) SHORT TITLE.—This Act may be cited as the ‘‘Na4 tional Competitiveness Act of 1994’’.

5 (b) TABLE OF CONTENTS.—

TITLE I—GENERAL PROVISIONS

Sec. 101. Short title and table of contents.

Sec. 102. Findings.

Sec. 103. Purposes.

Sec. 104. Definitions.

Sec. 105. Overall authorization limit.

TITLE II—MANUFACTURING

Sec. 201. Short title.

SUBTITLE A—MANUFACTURING TECHNOLOGY AND EXTENSION

Sec. 211. Manufacturing amendments to the Stevenson-Wydler Technology Innovation Act.
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Sec. 212. Manufacturing amendments to the National Institute of Standards and

Technology Act.

Sec. 213. Additional amendments to the Stevenson-Wydler Technology Innovation

Act.

Sec. 214. Manufacturing technology centers.

Sec. 215. State Technology Extension Program.

Sec. 216. Report on options for accelerating the adoption of new manufacturing

equipment.

SUBTITLE B—NATIONAL SCIENCE FOUNDATION MANUFACTURING PROGRAMS

Sec. 221. National Science Foundation manufacturing programs.

TITLE III—CRITICAL TECHNOLOGIES

Sec. 301. Development of plan for the Advanced Technology Program.

Sec. 302. Large-scale research and development consortia.

Sec. 303. Technical amendments.

Sec. 304. Technology monitoring and competitiveness assessment.

Sec. 305. Recoupment.

Sec. 306. Technology financing pilot program.

Sec. 307. Reports on foreign industrial espionage.

TITLE IV—ADDITIONAL COMMERCE DEPARTMENT PROVISIONS

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. Program evaluations.

Sec. 406. Study of semiconductor lithography technologies.

Sec. 407. Clearinghouse on State and Local Initiatives.

Sec. 408. Wind engineering research program.

Sec. 409. Environmentally sensitive construction technologies.

Sec. 410. American workforce quality.

Sec. 411. Severability.

Sec. 412. Use of domestic products.

Sec. 413. Personnel.

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.

TITLE VI—INFORMATION TECHNOLOGY APPLICATIONS

Sec. 601. Short title.

Sec. 602. Findings and purpose.

Sec. 603. Information technology applications.

Sec. 604. Applications for education and libraries.

Sec. 605. Applications for manufacturing and information.

Sec. 606. Applications in energy and other areas.

Sec. 607. Applications for health care; access to networks.

Sec. 608. High-Performance Computing and Applications Advisory Committee.
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Sec. 609. National Research and Education Network Program.

Sec. 610. Support for computer education programs.

Sec. 611. Support for State-based digital libraries.

Sec. 612. Support for computing activities at tribal colleges.

Sec. 613. Department of Education support for computer education programs.

TITLE VII—FASTENER QUALITY ACT AMENDMENTS

Sec. 701. Fastener Quality Act amendments.

TITLE VIII—PRIVATE CARRIAGE OF URGENT LETTERS

Sec. 801. Private carriage of urgent letters.

TITLE IX—REGULATORY FLEXIBILITY ANALYSIS

Sec. 901. Definitions.

Sec. 902. Initial regulatory flexibility analysis.

Sec. 903. Final regulatory flexibility analysis.

Sec. 904. Judicial review.

TITLE X—COUNTERINTELLIGENCE

Sec. 1001. Short title.

Sec. 1002. Amendment to the National Security Act of 1947.

Sec. 1003. Protection of cryptographic information.

Sec. 1004. Amendment to Right to Financial Privacy Act.

Sec. 1005. New criminal offense for the possession of espionage devices.

Sec. 1006. New offense for sale or transfer to foreign governments documents and

other materials designated as top secret.

Sec. 1007. Lesser criminal offense for the removal of top secret documents by government employees and contractors.

Sec. 1008. Jurisdiction of United States courts to try cases involving espionage

outside the United States.

Sec. 1009. Expansion of existing statute regarding forfeiture of collateral profits

of crime to additional espionage offenses.

Sec. 1010. Denial of annuities or retired pay to persons convicted of espionage

in foreign courts involving United States information.

Sec. 1011. Authorizing the FBI to obtain consumer reports on persons believed to

be agents of foreign powers.

Sec. 1012. To provide for rewards for information concerning espionage.

Sec. 1013. To provide a court order process for physical searches undertaken for

foreign intelligence purposes.

TITLE XI—LOCAL EMPOWERMENT AND FLEXIBILITY

Sec. 1101. Short title.

Sec. 1102. Findings.

Sec. 1103. Purposes.

Sec. 1104. Definitions.

Sec. 1105. Demonstration program.

Sec. 1106. Provision of Federal assistance in accordance with approved local

flexibility plan.

Sec. 1107. Application for approval of local flexibility plan.

Sec. 1108. Review and approval of local flexibility plans.

Sec. 1109. Implementation of approved local flexibility plans; waiver of requirements.
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Sec. 1110. Community advisory committees.

Sec. 1111. Technical and other assistance.

Sec. 1112. Community enterprise board.

Sec. 1113. Termination and repeal; report.

TITLE XII—HERO ACT

Sec. 1201. Short title.

Sec. 1202. Findings.

Sec. 1203. Citations.

TITLE XIII—MISCELLANEOUS PROVISIONS

Sec. 1301. Economic and Employment Impact Act.

Sec. 1302. Urban university business initiative grants.

Sec. 1303. Prohibition on solicitation of campaign contributions by persons

awarding contracts.

1 SEC. 102. FINDINGS.

2 Congress finds and declares the following:

3 (1) In an increasingly competitive world econ4 omy, the companies and nations which lead in the

5 rapid development, adoption, and application of new

6 technologies, and in the low-priced, high-quality man7 ufacture of products based on those technologies, will

8 lead in economic growth, employment, and high liv9 ing standards.

10 (2) While the United States remains the world

11 leader in science and invention, it has not done as

12 well as it should in manufacturing new products

13 based on these innovations. This lag and the unprece14 dented competitive challenge that the Nation has faced

15 from abroad have contributed to a drop in real wages,

16 living standards, and employment opportunities.

17 (3) There is general agreement on which fields of

18 technology are critical for economic competitiveness
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1 through the first decade of the next century, but the

2 United States Government must pursue a comprehen3 sive strategy to ensure that the appropriate research,

4 development, and applications activities and other re5 forms occur so these technologies are readily available

6 to United States manufacturers for incorporation into

7 products made in the United States.

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

11 continuous development and adoption of advanced

12 manufacturing technologies that will enable United

13 States manufacturers to develop innovative products

14 rapidly and manufacture goods of the highest quality

15 at competitive prices.

16 (5) While the private sector must take the lead

17 in the development, application, and manufacture of

18 new technologies, the Federal Government should—

19 (A) assist industry in the development of

20 high-risk, long-term precommercial technologies

21 which promise large economic benefits for the

22 Nation;

23 (B) support industry-led efforts to develop

24 and refine advanced manufacturing technologies,

25 including technologies which improve productiv-
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1 ity and quality and which build upon and en2 hance employee skills;

3 (C) work with States, the private sector,

4 worker organizations, and technical and profes5 sional societies to help small- and medium-sized

6 manufacturers throughout the Nation to adopt

7 best current manufacturing technologies and

8 practices, to improve worker skills, to establish

9 high-performance work organizations, and to

10 prepare, as appropriate, to adopt the advanced

11 computer-controlled manufacturing technologies

12 of the twenty-first century; and

13 (D) cooperate with industry and academia

14 to help create an advanced information infra15 structure for the United States.

16 (6) In working with industry to promote the

17 technological leadership and economic growth of the

18 United States, the Federal Government also has a re19 sponsibility to consult with business and labor leaders

20 on industry’s long-term technological and skill needs,

21 to monitor technological trends, production process

22 trends, and technology targeting efforts in other na23 tions, and generally to ensure that Federal technology

24 and industrial modernization programs help United
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1 States industry to remain competitive and create

2 good domestic jobs.

3 (7) Technology-based products of the twenty-first

4 century should be developed incorporating the values

5 of sustainable development, including low material

6 use, safety, recyclability, and minimal pollution.

7 (8) The Department of Commerce, and particu8 larly its Technology Administration and National In9 stitute of Standards and Technology, can effectively

10 assist industry to speed the development and utiliza11 tion of new technologies, improve and modernize

12 manufacturing, adopt new methods of production,

13 and ensure a growing and healthy national industrial

14 base and good manufacturing jobs. To promote the

15 long-term economic growth of the Nation, these De16 partment of Commerce programs should be strength17 ened and expanded.

18 SEC. 103. PURPOSES.

19 The purposes of this Act are to—

20 (1) strengthen and expand the ability of Federal

21 technology programs, particularly those of the Depart22 ment of Commerce, to support industry-led and State23 supported efforts to improve the technological capa24 bilities, manufacturing performance, information in-
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1 frastructure, and employment opportunities of the

2 United States;

3 (2) promote and facilitate, particularly through

4 the Advanced Technology Program of the Department

5 of Commerce, the creation, development, and adoption

6 of technologies that will contribute significantly to

7 United States economic competitiveness, employment,

8 high quality jobs, and prosperity;

9 (3) develop a nationwide network of sources of

10 technological and industrial modernization advice for

11 manufacturers, particularly small and medium-sized

12 firms, and provide high quality, current information

13 to that network;

14 (4) encourage cooperation among Federal depart15 ments and agencies to help companies, managers, and

16 workers, in a coordinated fashion, to take full advan17 tage of advanced manufacturing technologies, to im18 prove productivity and quality, and adopt advanced

19 workplace practices which successfully integrate tech20 nology and employees;

21 (5) stimulate the flow of capital to business con22 cerns engaged principally in development or utiliza23 tion of critical technologies and other advanced man24 ufacturing technologies;
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1 (6) ensure the widest possible application of

2 high-performance computing and high-speed

3 networking and aid United States industry to develop

4 an advanced national information infrastructure; and

5 (7) enhance and expand the core programs of the

6 National Institute of Standards and Technology.

7 SEC. 104. DEFINITIONS.

8 For purposes of this Act—

9 (1) the terms ‘‘advanced manufacturing tech10 nology’’, ‘‘advanced workplace practices’’, ‘‘modern

11 technology’’, and ‘‘sustainable economic growth’’ have

12 the meanings given such terms, respectively, in sec13 tion 4 of the Stevenson-Wydler Technology Innovation

14 Act of 1980, as amended by section 211(b) of this Act;

15 (2) the term ‘‘critical technologies’’ means tech16 nologies identified as critical technologies pursuant to

17 section 603(d) of the National Science and Technology

18 Policy, Organization, and Priorities Act of 1976 (42

19 U.S.C. 6683(d));

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

21 Institute;

22 (4) the term ‘‘Institute’’ means the National In23 stitute of Standards and Technology;

24 (5) the term ‘‘Secretary’’ means the Secretary of

25 Commerce;
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1 (6) the term ‘‘small business’’ has the meaning

2 given such term in the Small Business Act;

3 (7) the term ‘‘source reduction’’ has the meaning

4 given that term in section 6603 of the Pollution Pre5 vention Act of 1990 (42 U.S.C. 13102);

6 (8) the term ‘‘State’’ means any of the several

7 States, the District of Columbia, the Commonwealth

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

9 Samoa, the Commonwealth of the Northern Mariana

10 Islands, or any other territory or possession of the

11 United States;

12 (9) the term ‘‘Under Secretary’’ means the

13 Under Secretary of Commerce for Technology; and

14 (10) the term ‘‘United States’’ means the several

15 States, the District of Columbia, the Commonwealth

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

17 Samoa, the Commonwealth of the Northern Mariana

18 Islands, and any other territory or possession of the

19 United States.

20 SEC. 105. OVERALL AUTHORIZATION LIMIT.

21 Notwithstanding any other provision of this Act, the

22 total amount authorized to be appropriated under this Act

23 shall not exceed $1,900,000,000.
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1 TITLE II—MANUFACTURING

2 SEC. 201. SHORT TITLE.

3 This title may be cited as the ‘‘Manufacturing Tech4 nology and Extension Act of 1994’’.

5 Subtitle A—Manufacturing

6 Technology and Extension

7 SEC. 211. MANUFACTURING AMENDMENTS TO THE STEVEN8 SON-WYDLER TECHNOLOGY INNOVATION

9 ACT.

10 (a) AMENDMENTS.—The Stevenson-Wydler Technology

11 Innovation Act of 1980 (15 U.S.C. 3701 et seq.), as amend12 ed by section 213 of this Act, is further amended by adding

13 after section 101 (as so redesignated by section 213 of this

14 Act) the following new sections:

15 ‘‘SEC. 102. MANUFACTURING TECHNOLOGY.

16 ‘‘(a) STATEMENT OF POLICY.—Congress declares that

17 it is the policy of the United States that—

18 ‘‘(1) Federal agencies, particularly the Depart19 ment of Commerce, shall work with manufacturers in

20 the United States and labor to ensure that within 10

21 years of the date of enactment of the National Com22 petitiveness Act of 1994 the United States is second

23 to no other nation in the development, deployment,

24 and use of advanced manufacturing technologies;
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1 ‘‘(2) all the major Federal research and develop2 ment agencies shall place a high priority on the devel3 opment and deployment of skill-based and advanced

4 manufacturing technologies, and shall work closely

5 with manufacturers in the United States and labor

6 and with the Nation’s universities to develop and test

7 those technologies; and

8 ‘‘(3) since the development of new skills in the

9 existing and entry workforce, and the development of

10 new organizational and managerial approaches, are

11 integral parts of successfully deploying advanced

12 manufacturing technologies and related technologies,

13 advanced workplace practices should be developed and

14 deployed simultaneously and in a coordinated fashion

15 with the development and deployment of advanced

16 manufacturing technologies.

17 ‘‘(b) ROLE OF THE DEPARTMENT OF COMMERCE.—

18 The Department of Commerce, consistent with the policy

19 declared in subsection (a), shall have primary responsibil20 ity in the Federal Government for commercial and indus21 trial civilian technology and shall—

22 ‘‘(1) through the activities of the Technology Ad23 ministration, the Institute’s laboratories, and the Ad24 vanced Technology Program created under section 28

25 of the National Institute of Standards and Technology
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1 Act (15 U.S.C. 278n), work with manufacturers in

2 the United States and labor and, as appropriate, with

3 other Federal departments and agencies to help de4 velop new generic advanced manufacturing tech5 nologies, including technologies which build upon and

6 enhance employee skills and technologies which facili7 tate flexibility, agility, and electronic integration in

8 manufacturing enterprises;

9 ‘‘(2) through the Manufacturing Extension Part10 nership established under section 24 of the National

11 Institute of Standards and Technology Act and

12 through other activities of the Department, assist the

13 States and the private sector to help manufacturers in

14 the United States, especially small and medium-sized

15 manufacturing enterprises, to adopt modern tech16 nologies and advanced workplace practices and, as

17 appropriate, advanced manufacturing technologies

18 and equipment;

19 ‘‘(3) work with the private sector, other Federal

20 departments and agencies, State and local govern21 ments, and educational institutions to—

22 ‘‘(A) help develop advanced workplace prac23 tices, improved supplier-customer relations,

24 manufacturing modernization and investment

25 justification strategies, and other steps which
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1 would accelerate the development, deployment,

2 and use of advanced manufacturing technologies

3 by United States companies; and

4 ‘‘(B) evaluate foreign programs to modern5 ize manufacturing;

6 ‘‘(4) have primary responsibility in the Federal

7 Government in working with industry and labor and

8 the States to develop advanced manufacturing tech9 nologies and to promote and assist the adoption and

10 use of modern technologies, advanced manufacturing

11 technologies, and management techniques throughout

12 the United States; and

13 ‘‘(5) through the Under Secretary, develop meas14 urements and coordinate with appropriate Federal

15 agencies to ensure that Federal research and develop16 ment expenditures are linked to the economic needs of

17 industry and the promotion of economic growth.

18 ‘‘SEC. 103. MANUFACTURING ADVISORY COMMITTEE.

19 ‘‘(a) ESTABLISHMENT.—Subject to subsection (d), the

20 Secretary shall establish a Manufacturing Advisory Com21 mittee (in this section referred to as the ‘Committee’), which

22 shall be chaired by the Secretary and which shall provide

23 advice to the Secretary and, as appropriate, to other Fed24 eral officials.

25 ‘‘(b) FUNCTIONS.—The Committee shall—
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1 ‘‘(1) collect and analyze information on the

2 range of factors which determine the success of United

3 States-based manufacturing industries, and particu4 larly factors regarding the development of advanced

5 manufacturing technologies, the deployment of mod6 ern technologies, and the application of advanced

7 workplace practices;

8 ‘‘(2) identify areas where appropriate coopera9 tion between the Federal Government and industry

10 and labor, including Government support for indus11 try-led joint research and development ventures and

12 for manufacturing extension activities, would enhance

13 United States industrial competitiveness, and provide

14 advice and guidance for such cooperative efforts;

15 ‘‘(3) provide guidance on what Federal policies

16 and practices are necessary to strengthen United

17 States-based manufacturing, particularly Federal

18 policies and practices regarding research budgets,

19 interagency coordination and initiatives, and tech20 nology transfer; and

21 ‘‘(4) generally develop recommendations for guid22 ing Federal agency and interagency activities related

23 to United States-based manufacturing.

24 ‘‘(c) MEMBERSHIP AND PROCEDURES.—(1) The Com25 mittee shall be composed of 16 members, of whom—
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1 ‘‘(A) 6 members shall be the Secretary, the Direc2 tor of the Office of Science and Technology Policy, the

3 Secretary of Defense, the Secretary of Energy, the

4 Secretary of Labor, and the Director of the National

5 Science Foundation, or their designees; and

6 ‘‘(B) 10 members shall, within 120 days after the

7 date of enactment of the National Competitiveness Act

8 of 1994, be appointed by the Secretary from the pri9 vate manufacturing industry, worker organizations,

10 technical and professional societies, State technology

11 agencies, and academia.

12 At least two of the members appointed under subparagraph

13 (B) shall be from small business.

14 ‘‘(2) The Secretary shall call the first meeting of the

15 Committee within 30 days after the appointment of mem16 bers is completed.

17 ‘‘(3) The Committee may use such personnel detailed

18 from Federal agencies as may be necessary to enable it to

19 perform its functions.

20 ‘‘(4) Nine members of the Committee shall constitute

21 a quorum for the transaction of business.

22 ‘‘(5) Members of the Committee, other than full-time

23 employees of the Federal Government, while attending meet24 ings of the Committee or otherwise performing duties of the

25 Committee while away from their homes or regular places
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1 of business, shall be allowed travel expenses in accordance

2 with subchapter I of chapter 57 of title 5, United States

3 Code.

4 ‘‘(6) The Committee, as appropriate, shall work with

5 the Department of Commerce Technology Advisory Board

6 and with other appropriate Federal advisory mechanisms

7 to ensure integrated Federal-private consideration of tech8 nology and manufacturing policies and programs.

9 ‘‘(d) SECRETARIAL DISCRETION.—Notwithstanding

10 any other provision of this section, the Secretary shall have

11 the discretion to decide whether to establish the Committee

12 or create a more cost-effective way to achieve the goal of

13 closer cooperation with industry. If the Secretary exercises

14 such discretion and establishes an alternative mechanism,

15 the Under Secretary shall make an effort to ensure the par16 ticipation of socially and economically disadvantaged indi17 viduals (within the meaning of section 8(a) (5) and (6) of

18 the Small Business Act, and including women) in the alter19 native mechanism.’’.

20 (b) ADDITIONAL DEFINITIONS.—Section 4 of the Ste21 venson-Wydler Technology Innovation Act of 1980 (15

22 U.S.C. 3703) is amended by adding at the end the following

23 new paragraphs:

24 ‘‘(14) ‘Advanced manufacturing technology’

25 means—
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1 ‘‘(A) numerically-controlled machine tools,

2 robots, automated process control equipment,

3 computerized flexible manufacturing systems, as4 sociated computer software, and other technology

5 for improving manufacturing and industrial

6 production of goods, including biotechnology

7 products, which advance the state-of-the-art; or

8 ‘‘(B) novel manufacturing techniques and

9 processes not previously generally available that

10 improve manufacturing quality, productivity,

11 and practices, including engineering design,

12 quality assurance, concurrent engineering, con13 tinuous process production technology, inventory

14 management, upgraded worker skills, commu15 nications with customers and suppliers, and pro16 motion of sustainable economic growth.

17 ‘‘(15) ‘Modern technology’ means the best avail18 able proven technology, techniques, and processes ap19 propriate to enhancing the productivity of manufac20 turers or to promoting sustainable economic growth.

21 ‘‘(16) ‘Advanced workplace practices’ means in22 novations in work organization and performance, in23 cluding high-performance workplace systems, flexible

24 production techniques, quality programs, continuous

25 improvement, concurrent engineering, close relations
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1 between suppliers and customers, widely diffused deci2 sion-making and work teams, and effective integra3 tion of production technology, worker skills and train4 ing, and workplace organization.

5 ‘‘(17) ‘Sustainable economic growth’ means eco6 nomic growth that enhances the national quality of

7 life and preserves environmental integrity.’’.

8 SEC. 212. MANUFACTURING AMENDMENTS TO THE NA9 TIONAL INSTITUTE OF STANDARDS AND

10 TECHNOLOGY ACT.

11 (a) NATIONAL QUALITY LABORATORY; MANUFACTUR12 ING EXTENSION PARTNERSHIP.—The National Institute of

13 Standards and Technology Act (15 U.S.C. 271 et seq.) is

14 amended—

15 (1) by redesignating sections 29 through 31 as

16 sections 31 through 33, respectively;

17 (2) by redesignating sections 23 and 24 as sec18 tions 29 and 30, respectively; and

19 (3) by inserting after section 22 the following

20 new sections:

21 ‘‘NATIONAL QUALITY LABORATORY

22 ‘‘SEC. 23. A National Quality Laboratory is estab23 lished within the Institute, the purpose of which is to per24 form research and outreach activities to assist private sector

25 quality efforts and to serve as a mechanism by which com26 panies in the United States, universities and other inter-
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1 ested parties, and the Institute can work together to advance

2 quality management programs and to share and, as appro3 priate, develop manufacturing best practices.

4 ‘‘MANUFACTURING EXTENSION PARTNERSHIP

5 ‘‘SEC. 24. (a) There is established within the Institute

6 a Manufacturing Extension Partnership (in this section re7 ferred to as the ‘Partnership’). The Secretary, acting

8 through the Under Secretary and the Director, shall imple9 ment and coordinate the Partnership in accordance with

10 the initial and 5-year plans prepared under subsection (h).

11 The purpose of the Partnership is to link electronically and

12 strengthen the Nation’s manufacturing extension centers

13 and activities in order to assist manufacturers in the Unit14 ed States, especially small- and medium-sized companies,

15 to expand and accelerate the use of modern technologies,

16 and to accelerate the development and use of advanced man17 ufacturing technologies and advanced workplace practices.

18 ‘‘(b) The Partnership shall be a cooperative effort of

19 the Department of Commerce, the States, manufacturers in

20 the United States, labor, nonprofit organizations, and, as

21 appropriate, other Federal agencies to provide a national

22 system of manufacturing extension centers and technical

23 services to United States companies, particularly small24 and medium-sized manufacturers. The Partnership shall

25 include—
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1 ‘‘(1) Manufacturing Outreach Centers, as author2 ized under subsection (c);

3 ‘‘(2) Regional Centers for the Transfer of Manu4 facturing Technology and Local Manufacturing Of5 fices, as established under section 25, and the State

6 Technology Extension Program, as established under

7 section 26;

8 ‘‘(3) the outreach network provided for under

9 subsection (d) and the clearinghouse system developed

10 under subsection (e); and

11 ‘‘(4) such technology and manufacturing exten12 sion centers supported by other Federal departments

13 and agencies, States, industry, and nonprofit organi14 zations as the Secretary considers appropriate for in15 clusion in the Partnership.

16 ‘‘(c)(1) Government and private sector organizations,

17 actively engaged in technology or manufacturing extension

18 activities, may apply to the Secretary to be designated as

19 Manufacturing Outreach Centers. Eligible organizations

20 may include Federal, State, and local government agencies,

21 their extension programs, and their laboratories; small busi22 ness development centers; and appropriate programs run by

23 professional and technical societies, worker organizations,

24 industrial organizations, for-profit or nonprofit organiza25 tions, community development organizations, State univer-
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1 sities and other universities, community colleges, and tech2 nical schools and colleges, including, where appropriate,

3 vendor-supported demonstrations of production applica4 tions.

5 ‘‘(2) The purpose of such Manufacturing Outreach

6 Centers shall be to—

7 ‘‘(A) disseminate technical and information serv8 ices to manufacturers in the United States, particu9 larly small- and medium-sized companies; and

10 ‘‘(B) strengthen direct assistance to small- and

11 medium-sized manufacturers in the United States to

12 expand and accelerate the use of modern technologies

13 and advanced workplace practices.

14 ‘‘(3) The Secretary shall establish terms and conditions

15 of participation in a Manufacturing Outreach Center, in16 cluding qualifications of start-up programs as Manufactur17 ing Outreach Centers, and may provide financial assist18 ance, on a cost-shared basis and through competitive, merit19 based review processes, to nonprofit or government partici20 pants throughout the United States to enable them to estab21 lish a Manufacturing Outreach Center.

22 ‘‘(4) Any Regional Center for the Transfer of Manufac23 turing Technology may apply to the Secretary to establish

24 a Manufacturing Outreach Center, managed by or in co25 operation with such Regional Center, if the Manufacturing
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1 Outreach Center would be located outside and would pri2 marily serve an area outside the effective service area of

3 such Regional Center. Funding for the establishment and

4 management of such Manufacturing Outreach Center may

5 be awarded to such Regional Center under this subsection,

6 notwithstanding the restrictions of paragraph (6).

7 ‘‘(5) If a State plan for technology extension exists in

8 a State where an applicant for financial assistance under

9 this subsection is operating or plans to operate, the appli10 cant shall demonstrate in its application that its proposal

11 is compatible with such State plan.

12 ‘‘(6) If a Manufacturing Outreach Center is in or near

13 a State which has a Regional Center for the Transfer of

14 Manufacturing Technology, the Director shall, as appro15 priate, encourage the Manufacturing Outreach Center to co16 operate with the Regional Center in coordinating its pro17 posals and ongoing programs to serve manufacturers in the

18 region. Manufacturing Outreach Centers may not concur19 rently be designated as Regional Centers for the Transfer

20 of Manufacturing Technology under section 25.

21 ‘‘(7) Financial assistance may be awarded under this

22 subsection for an initial period not to exceed 3 years and

23 may, subject to successful evaluation by the Institute, be re24 newed for additional periods, not to exceed 3 years each.

25 Such assistance may not at any time exceed 50 percent of
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1 the operating costs and other costs of the Manufacturing

2 Outreach Center, as defined by regulation.

3 ‘‘(d)(1) The Department of Commerce shall provide for

4 an instantaneous, interactive electronic communications

5 network (in this section referred to as the ‘outreach net6 work’) to serve the Partnership, to facilitate effective and

7 efficient interaction within it, and to permit the collection

8 and dissemination in electronic form, in a timely and accu9 rate manner, of information described in subsection (e). The

10 outreach network shall, wherever practicable, make use of

11 existing public and private computer networks, data bases,

12 and electronic bulletin boards. The design, configuration,

13 acquisition plan, and operating policies, including user fees

14 and appropriate electronic access for public and private in15 formation suppliers and users, of the outreach network shall

16 be included in the 5-year plan prepared under subsection

17 (h)(2).

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

19 network established under paragraph (1) shall be designed

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

22 National High-Performance Computing Program described

23 in section 101 of the High-Performance Computing Act of

24 1991 (15 U.S.C. 5511). The Secretary shall also, as appro25 priate, coordinate activities under this subsection with the
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1 relevant activities of other Federal agencies, particularly

2 the agile manufacturing/enterprise integration activities of

3 the Department of Defense.

4 ‘‘(e)(1) The Secretary, acting through the Under Sec5 retary, shall develop a clearinghouse system, using appro6 priate components of the Technology Administration and

7 other public and private sector information providers and

8 carriers, where appropriate, to—

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

10 appropriate to the purpose of the Partnership stated

11 in subsection (a), from all available Federal sources,

12 and where appropriate from other sources, providing

13 assistance where necessary in making such informa14 tion electronically available and compatible with the

15 outreach network established under subsection (d);

16 ‘‘(B) ensure ready access by manufacturers, gov17 ernmental agencies, and nonprofit organizations in

18 the United States to the most recent relevant available

19 such information and expertise;

20 ‘‘(C) ensure that common standards of inter21 connection are utilized by the outreach network and

22 the clearinghouse to allow maximum interoperability

23 and usership; and

24 ‘‘(D) to the extent practicable, inform potential

25 users of the availability of such information.
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1 ‘‘(2) The clearinghouse shall include information

2 available electronically regarding—

3 ‘‘(A) activities of Manufacturing Outreach Cen4 ters, Regional Centers for the Transfer of Manufactur5 ing Technology, the State Technology Extension Pro6 gram, and the users of the outreach network;

7 ‘‘(B) domestic and international standards from

8 the Institute and private sector organizations and

9 other export promotion information, including con10 formity assessment requirements and procedures;

11 ‘‘(C) the Malcolm Baldrige National Quality

12 Award program, and quality principles and stand13 ards;

14 ‘‘(D) manufacturing processes that minimize

15 waste and negative environmental impact;

16 ‘‘(E) advanced workplace practices;

17 ‘‘(F) federally funded technology development

18 and transfer programs;

19 ‘‘(G) responsibilities assigned to the Clearing20 house for State and Local Initiatives on Productivity,

21 Technology, and Innovation;

22 ‘‘(H) how to access data bases and services;

23 ‘‘(I) skills training, particularly for production

24 workers, that is available through trade and profes25 sional organizations, federally supported programs,
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1 State resources, private industry, or other organiza2 tions; and

3 ‘‘(J) other subjects relevant to the ability of com4 panies to manufacture and sell competitive products

5 throughout the world.

6 ‘‘(f) In carrying out this section, the Department of

7 Commerce shall take into consideration the following prin8 ciples:

9 ‘‘(1) The Partnership and the outreach network

10 provided for under subsection (d) shall be established

11 and operated through cooperation and co-funding

12 among Federal, State, and local governments, other

13 public and private contributors, and end users.

14 ‘‘(2) The Partnership and the outreach network

15 shall utilize and leverage, to the extent practicable, ex16 isting organizations, data bases, electronic networks,

17 facilities, and capabilities, and shall be designed to

18 complement rather than supplant State and local pro19 grams.

20 ‘‘(3) The Partnership should, to the extent prac21 ticable, involve key stakeholders at all levels in the

22 planning and governance of modernization strategies;

23 concentrate on assisting local clusters of firms; assist

24 rural as well as urban manufacturers; promote col25 laborative learning and cooperative action among
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1 manufacturers; link industrial modernization pro2 grams tightly to existing and future Federal training

3 initiatives, including those for youth apprenticeship

4 programs and for assisting other workers; encourage

5 small firms to seek modernization services by working

6 with major manufacturers; encourage small firms, as

7 appropriate, to select manufacturing equipment and

8 practices which build upon and expand the skills of

9 their employees; identify and honor best practices by

10 firms and the programs that support them, including

11 both technology and workplace practices; provide

12 funding based on performance and ensure rigorous

13 evaluation of extension services; as appropriate, co14 ordinate Federal programs that support manufactur15 ing modernization; work with Federal, State, local,

16 and private organizations so that Manufacturing

17 Outreach Centers and Regional Centers for the Trans18 fer of Manufacturing Technology can provide referrals

19 to other important business services, such as assist20 ance with financing, training, and exporting, and

21 contribute to local business climates supportive of

22 high-performance manufacturing.

23 ‘‘(4) The Partnership and the outreach network

24 provided for under subsection (d) shall be subject to
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1 all applicable provisions of law for the protection of

2 trade secrets and business confidential information.

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

4 the management structure and staffing of the Manu5 facturing Outreach Centers. The Partnership shall

6 strive for geographical balance and for balance be7 tween urban and rural recipients, with the ultimate

8 goal of access for all United States manufacturers.

9 ‘‘(6) Manufacturing Outreach Centers should

10 have the capability to deliver outreach services di11 rectly to manufacturers; actively work with, rather

12 than supplant, the private sector; help firms assess

13 needs regarding technology, workplace practices, and

14 training; and to the extent practicable, maximize the

15 exposure of United States manufacturers to dem16 onstrations of modern technologies in use.

17 ‘‘(7) Manufacturing Outreach Centers shall focus,

18 where possible, on the deployment of flexible manufac19 turing technologies and practices applicable to both

20 defense and commercial applications and on opportu21 nities to modernize operations in ways which improve

22 productivity, reduce waste and pollution, and in23 crease energy efficiency.

24 ‘‘(8) The Department of Commerce shall develop

25 mechanisms for—
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1 ‘‘(A) soliciting the perspectives of manufac2 turers using the services of the Manufacturing

3 Outreach Centers and Regional Centers for the

4 Transfer of Manufacturing Technology;

5 ‘‘(B) assisting in the training of technology

6 extension agents and in helping them dissemi7 nate information on modern manufacturing

8 technologies, including technologies for source re9 duction, and advanced workplace practices; and

10 ‘‘(C) rigorously evaluating the effectiveness

11 of the Manufacturing Outreach Centers and other

12 components of the Partnership.

13 ‘‘(9) This Act does not supersede, modify, or oth14 erwise alter the rights and obligations of employers,

15 employees, and labor organizations as set forth in the

16 National Labor Relations Act and the Railway Labor

17 Act or in any collective bargaining agreement entered

18 into by parties covered by those Acts.

19 ‘‘(g)(1) The Regional Centers for the Transfer of Manu20 facturing Technology and Manufacturing Outreach Centers

21 shall, as appropriate, make available source reduction and

22 energy conservation assessments to interested manufactur23 ers in the United States. These assessments shall assist such

24 interested manufacturers in identifying opportunities for

25 energy conservation and source reduction, and thus reduce
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1 operating costs, through either improvement in manufactur2 ing processes or the purchase of new equipment.

3 ‘‘(2) The Secretary is authorized to work with other

4 appropriate Federal officials and other parties to provide

5 employees of Regional Centers for the Transfer of Manufac6 turing Technology and Manufacturing Outreach Centers

7 with the training needed to carry out the assessments speci8 fied in paragraph (1).

9 ‘‘(h)(1) Within 6 months after the date of enactment

10 of the National Competitiveness Act of 1994, the Secretary,

11 through the Under Secretary and Director and after con12 sulting with the private sector, shall submit an initial plan

13 for the implementation of this section to Congress—

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

15 the responsibility to create, operate, and support the

16 Partnership and the outreach network;

17 ‘‘(B) establishing criteria and procedures, con18 sistent with the requirements of this section, for—

19 ‘‘(i) the selection of organizations to receive

20 Department of Commerce services or financial

21 assistance as part of the Partnership, including

22 qualifications and training of technology exten23 sion agents;

24 ‘‘(ii) access to services provided by partici25 pants in the Partnership and to information
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1 available through the outreach network servicing

2 the Partnership; and

3 ‘‘(iii) the annual evaluation of the Partner4 ship in achieving the purposes of this section;

5 and

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

7 a National Conference of States on Technology Exten8 sion, similar in structure to the National Conference

9 on Weights and Measures, and, if the Secretary deter10 mines that such a Conference is advisable, developing,

11 in consultation with the States and other interested

12 parties, a plan for the establishment, operation, fund13 ing, and evaluation of such a Conference.

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

15 the National Competitiveness Act of 1994, the Secretary,

16 through the Under Secretary and Director, shall prepare

17 and submit to the Congress a 5-year plan for implementing

18 the Partnership and the outreach network and clearing19 house established under subsections (d) and (e), respectively,

20 of this section.

21 ‘‘(B) Such 5-year plan shall address—

22 ‘‘(i) effective mechanisms for providing operating

23 funds for the maintenance and use of the outreach

24 network established under subsection (d), including
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1 user fees, industry support, and continued Federal in2 vestment;

3 ‘‘(ii) the future operation and evolution of the

4 outreach network, including its relationship with

5 other public or private information services;

6 ‘‘(iii) how to protect the copyrights of material

7 distributed over the outreach network; and

8 ‘‘(iv) appropriate policies to ensure the security

9 of proprietary information that might be available on

10 the outreach network and to protect the privacy of

11 users of the outreach network.

12 ‘‘(C) Such 5-year plan shall identify appropriate

13 methods for expanding the Partnership in a geographically

14 balanced manner. Such 5-year plan shall include a detailed

15 implementation plan and cost estimates and shall take into

16 consideration and build on the report submitted under

17 paragraph (1). In the preparation of such 5-year plan, the

18 Secretary shall provide an opportunity for public comment,

19 and the plan submitted to Congress shall include a sum20 mary of comments received. Any new types of activities pro21 posed by such plan may not be implemented until 90 days

22 after its submission to the Congress.

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

24 the 5-year plan under paragraph (2), the Secretary shall
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1 annually report to the Congress, at the time of the Presi2 dent’s annual budget request to Congress, on—

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

4 the Partnership described in subsection (a), using cri5 teria and procedures established under paragraph

6 (1)(B)(iii) of this subsection;

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

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

9 ‘‘(D) any recommendations for legislative

10 changes necessary to enhance the Partnership.

11 The report under this paragraph submitted at the end of

12 the fourth year of operation of the Partnership shall include

13 recommendations on whether to terminate the Partnership

14 or extend it for an additional period not to exceed 5 years.’’.

15 (b) DEFINITIONS.—The National Institute of Stand16 ards and Technology Act (15 U.S.C. 271 et seq.) is amended

17 by inserting after section 1 the following new section:

18 ‘‘SEC. 1A. As used in this Act—

19 ‘‘(1) the terms ‘advanced manufacturing tech20 nology’, ‘modern technology’, ‘advanced workplace

21 practices’, and ‘sustainable economic growth’ have the

22 meanings given such terms in section 4 of the Steven23 son-Wydler Technology Innovation Act;

24 ‘‘(2) the term ‘independent research organiza25 tions’ means nonprofit organizations organized pri-
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1 marily for the purpose of conducting or managing re2 search activities;

3 ‘‘(3) the term ‘source reduction’ has the meaning

4 given that term in section 6603 of the Pollution Pre5 vention Act of 1990 (42 U.S.C. 13102);

6 ‘‘(4) the term ‘State’ means any of the several

7 States, the District of Columbia, the Commonwealth

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

9 Samoa, the Commonwealth of the Northern Mariana

10 Islands, or any other territory or possession of the

11 United States; and

12 ‘‘(5) the term ‘United States’ means the several

13 States, the District of Columbia, the Commonwealth

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

15 Samoa, the Commonwealth of the Northern Mariana

16 Islands, and any other territory or possession of the

17 United States.’’.

18 SEC. 213. ADDITIONAL AMENDMENTS TO THE STEVENSON19 WYDLER TECHNOLOGY INNOVATION ACT.

20 The Stevenson-Wydler Technology Innovation Act of

21 1980 (15 U.S.C. 3701 et seq.) is amended—

22 (1) by inserting after section 4 the following new

23 title heading:
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1 ‘‘TITLE I—DEPARTMENT OF COM2 MERCE AND RELATED PRO3 GRAMS’’;

4 (2) by redesignating section 5 as section 101;

5 (3) by redesignating sections 6 through 10 as sec6 tions 105 through 109, respectively;

7 (4) by striking section 21;

8 (5) by redesignating sections 16, 17, 18, 19, 20,

9 and 22 as sections 110 through 115, respectively;

10 (6) by inserting after section 115 (as redesig11 nated by paragraph (5) of this subsection) the follow12 ing new title heading:

13 ‘‘TITLE II—FEDERAL

14 TECHNOLOGY TRANSFER’’;

15 (7) by redesignating sections 11 through 15 as

16 sections 201 through 205, respectively;

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

18 (9) in section 4—

19 (A) by striking ‘‘section 5’’ and inserting in

20 lieu thereof ‘‘section 101’’;

21 (B) by striking ‘‘section 5(b)(1)’’ and in22 serting in lieu thereof ‘‘section 101(b)(1)’’;

23 (C) in paragraphs (4) and (6), by striking

24 ‘‘section 6’’ and ‘‘section 8’’ each place they ap-
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1 pear and inserting in lieu thereof ‘‘section 105’’

2 and ‘‘section 107’’, respectively; and

3 (D) in paragraph (13), by striking ‘‘section

4 6’’ and inserting in lieu thereof ‘‘section 105’’;

5 (10) in section 108 (as redesignated by para6 graph (3) of this subsection) by striking ‘‘section

7 6(a)’’ and inserting in lieu thereof ‘‘section 106(a)’’;

8 by striking ‘‘section 6(b)’’ and inserting in lieu there9 of ‘‘section 106(b)’’; and by striking ‘‘section 6(c)(3)’’

10 and inserting in lieu thereof ‘‘section 106(c)(3)’’;

11 (11) in section 109(d) (as redesignated by para12 graph (2) of this subsection) by striking ‘‘section 7, 9,

13 11, 15, 17, or 20 of’’;

14 (12) in section 201(i) (as redesignated by para15 graph (7) of this subsection) by inserting ‘‘loan, lease,

16 or’’ after ‘‘may’’; and by inserting ‘‘Actions taken

17 under this subsection shall not be subject to Federal

18 requirements on the disposal of property.’’ after ‘‘ac19 tivities.’’;

20 (13) in section 202(b) (as redesignated by para21 graph (7) of this subsection) by striking ‘‘section

22 14(a)(1)(B) (i), (ii), and (iv)’’ and inserting in lieu

23 thereof ‘‘section 204(a)(1)(B) (i), (ii), and (iv)’’;
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1 (14) in section 204(a)(1) (as redesignated by

2 paragraph (7) of this subsection) by striking ‘‘section

3 12’’ and inserting in lieu thereof ‘‘section 202’’;

4 (15) in section 115 (as redesignated by para5 graph (5) of this subsection) by striking ‘‘Act (other

6 than sections 11, 12, and 13)’’ and inserting in lieu

7 thereof ‘‘title’’;

8 (16) in section 206 (as redesignated by para9 graph (7) of this subsection)—

10 (A) by striking ‘‘section 12(d)(2)’’ in the in11 troductory matter of subsection (a) and inserting

12 in lieu thereof ‘‘section 202(d)(2)’’;

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

16 (C) by striking ‘‘section 6(d)’’ in subsection

17 (b) and inserting in lieu thereof ‘‘section

18 105(d)’’;

19 (17) in section 112 (as redesignated by para20 graph (5) of this subsection)—

21 (A) in the section heading, by striking

22 ‘‘CONFERENCE’’ and inserting in lieu

23 thereof ‘‘CONFERENCES’’;

24 (B) by striking ‘‘Not later than’’ through

25 ‘‘shall convene a conference’’ and inserting in
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1 lieu thereof ‘‘The Secretary, through the Under

2 Secretary, in consultation with other appro3 priate officials, may convene conferences’’; and

4 (C) by striking ‘‘such conference shall’’ and

5 in insert in lieu thereof ‘‘any such conferences

6 shall, whenever appropriate,’’;

7 (18) by adding at the end of section 201 (as re8 designated by paragraph (7) of this subsection) the

9 following new subsection:

10 ‘‘(j) ADDITIONAL TECHNOLOGY TRANSFER MECHA11 NISMS.—In addition to the technology transfer mechanisms

12 set forth in this section and section 202, the heads of Federal

13 departments and agencies also may transfer technologies

14 through the technology transfer, extension, and deployment

15 programs of the Department of Commerce and the Depart16 ment of Defense.’’; and

17 (19) in section 101(c) (as redesignated by para18 graph (2) of this subsection)—

19 (A) by striking ‘‘and’’ at the end of para20 graph (14);

21 (B) by striking the period at the end of

22 paragraph (15) and inserting in lieu thereof ‘‘;

23 and’’; and

24 (C) by adding at the end the following new

25 paragraph:
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1 ‘‘(16) engage in joint projects with any person or per2 sons on matters within the authority of the Department of

3 Commerce, accept temporary personnel from industrial

4 partners, and receive cash donations in the course of such

5 joint projects, and in conjunction with the planning and

6 operation of such joint projects hold private meetings of

7 matters of mutual interest with groups of interested persons,

8 in order to protect sensitive information about United

9 States industry and to ensure industry participation in

10 such joint projects.’’.

11 SEC. 214. MANUFACTURING TECHNOLOGY CENTERS.

12 (a) AMENDMENTS.—(1) Section 25(a) of the National

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

14 278k(a)) is amended by striking ‘‘and’’ at the end of para15 graph (4); by striking the period at the end of paragraph

16 (5) and inserting in lieu thereof a semicolon; and by insert17 ing after paragraph (5) the following new paragraphs:

18 ‘‘(6) the active dissemination of information on

19 advanced workplace practices and available education

20 and training programs, and the encouragement of

21 companies to train workers in the effective use of

22 modern technologies and advanced manufacturing

23 technologies; and

24 ‘‘(7) demonstration projects in which Centers

25 work with States, local governments, community de-
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1 velopment organizations, worker and business organi2 zations, and community banks to create a business

3 climate supportive of high-performance manufactur4 ing.’’.

5 (2) Section 25(b) of the National Institute of Stand6 ards and Technology Act (15 U.S.C. 278k(b)) is amended

7 by striking ‘‘and’’ at the end of paragraph (2); by redesig8 nating paragraph (3) as paragraph (4); and by inserting

9 after paragraph (2) the following new paragraph:

10 ‘‘(3) assessments of client companies’ moderniza11 tion needs, assistance in implementing quality proc12 esses, advice on pollution minimization and source re13 duction, and, where needed, cooperation with training

14 institutions to ensure that employees, particularly

15 production workers, receive training in the most effec16 tive use of modern technologies and advanced work17 place practices; and’’.

18 (3) Section 25(c) of the National Institute of Stand19 ards and Technology Act (15 U.S.C. 278k(c)) is amended—

20 (A) in paragraph (1) by striking ‘‘for a period

21 not to exceed six years’’; and

22 (B) in paragraph (5) by striking ‘‘which are de23 signed’’ and all that follows through the period at the

24 end of the paragraph and inserting in lieu thereof ‘‘to

25 a maximum of one-third Federal funding. Each Cen-
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1 ter which receives financial assistance under this sec2 tion shall be evaluated during its sixth year of oper3 ation, and at least triennially thereafter as the Sec4 retary considers appropriate, by an evaluation panel

5 appointed by the Secretary in the same manner as

6 was the evaluation panel previously appointed. The

7 Secretary shall not provide funding for additional

8 years of the Center’s operation unless the most recent

9 evaluation is positive and the Secretary finds that

10 continuation of funding furthers the purposes of this

11 section.’’.

12 (4) Section 25 of the National Institute of Standards

13 and Technology Act (15 U.S.C. 278k) is amended by adding

14 at the end the following new subsections:

15 ‘‘(e) In addition to any assistance provided or con16 tracts entered into with a Center under this section, the Di17 rector is authorized to make separate and smaller awards,

18 through a competitive process, to nonprofit organizations

19 which wish to work with a Center. Such awards shall be

20 for the purpose of enabling those organizations to provide

21 outreach services, in collaboration with the Center, to man22 ufacturers located in parts of the region served by the Center

23 which are not easily accessible to the Center and which are

24 not served by any other manufacturing outreach center. Or25 ganizations which receive such awards shall be known as
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1 Local Manufacturing Offices. In reviewing applications, the

2 Director shall consider the needs of rural as well as urban

3 manufacturers. No single award for a Local Manufacturing

4 Office shall be for more than 3 years, awards shall be renew5 able through the competitive awards process, and no award

6 shall be made unless the applicant provides matching funds

7 at least equal to the amount received under this subsection.

8 ‘‘(f) In carrying out this section, the Director shall co9 ordinate his efforts with the plans for the Manufacturing

10 Extension Partnership established under section 24.’’.

11 SEC. 215. STATE TECHNOLOGY EXTENSION PROGRAM.

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

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

14 278l(a)) is amended—

15 (1) by inserting after ‘‘(a)’’ the following new

16 sentence: ‘‘There is established within the Institute a

17 State Technology Extension Program.’’; and

18 (2) by inserting ‘‘through that Program’’ after

19 ‘‘technical assistance’’.

20 (b) ASSISTANCE PROVIDED BY PROGRAM.—Section 26

21 of the National Institute of Standards and Technology Act

22 (15 U.S.C. 278l) is amended by adding at the end the fol23 lowing new subsection:

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

25 subsection (b), the State Technology Extension Program
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1 also shall, through merit-based competitive review processes

2 and to the extent provided in advance in appropriations

3 Acts—

4 ‘‘(1) make awards to States and conduct work5 shops, pursuant to section 5121(b) of the Omnibus

6 Trade and Competitiveness Act of 1988 (15 U.S.C.

7 278l note) in order to help States improve their plan8 ning and coordination of technology extension activi9 ties;

10 ‘‘(2) assist States, including States which his11 torically have had no manufacturing or technology

12 extension programs or only small programs, to plan,

13 develop, and coordinate such programs and to help

14 bring those State programs to a level of performance

15 where they can provide the full range of manufactur16 ing extension services required by their manufacturers

17 or, as appropriate, apply successfully for awards to

18 establish Manufacturing Outreach Centers, Regional

19 Centers for the Transfer of Manufacturing Tech20 nology, or both;

21 ‘‘(3) support industrial modernization dem22 onstration projects to help States create networks

23 among small manufacturers for the purpose of facili24 tating technical assistance, group services, and im25 proved productivity and competitiveness;
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1 ‘‘(4) support State efforts to develop and test in2 novative ways to help small- and medium-sized man3 ufacturers in the United States improve their tech4 nical capabilities, including, as appropriate, State

5 contracts with private-sector technology transfer com6 panies to provide technology assistance and develop7 ment services that are beyond the current capacity of

8 a given State’s industrial extension activities;

9 ‘‘(5) support State efforts designed to help small10 and medium-sized manufacturers in rural as well as

11 urban areas improve and modernize their technical

12 capabilities, including, as appropriate, interstate ef13 forts to achieve such end;

14 ‘‘(6) support State efforts to assist interested

15 small defense manufacturing firms to convert their

16 production to nondefense or dual-use purposes;

17 ‘‘(7) support planning for worker technology

18 education programs in the States at institutions such

19 as research universities, community colleges, technical

20 and professional societies, labor education centers,

21 labor-management committees, and worker organiza22 tions in production technologies critical to the Na23 tion’s future, with an emphasis on high-performance

24 work systems, the skills necessary to use advanced

25 manufacturing system well, and best production prac-
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1 tice; and support on-the-job training programs in the

2 States to build and enhance the skills of employees,

3 particularly production workers, in small- and me4 dium-sized manufacturers; and

5 ‘‘(8) help States develop programs to train per6 sonnel who in turn can provide technical skills to

7 managers and workers of manufacturing firms.’’.

8 SEC. 216. REPORT ON OPTIONS FOR ACCELERATING THE

9 ADOPTION OF NEW MANUFACTURING EQUIP10 MENT.

11 Within 1 year after the date of enactment of this Act,

12 the Secretary, acting through the Under Secretary, shall

13 submit to Congress a report on—

14 (1) the degree to which United States manufac15 turers have difficulty obtaining financing for the pur16 pose of purchasing equipment needed to implement

17 advanced manufacturing technology and modernize

18 operations;

19 (2) the policies and practices followed in other

20 industrialized countries to help manufacturers obtain

21 financing for modernization; and

22 (3) the advantages, disadvantages, and costs of

23 major options by which the Federal Government

24 might help stimulate the flow of capital to manufac-
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1 turers and thus accelerate industrial modernization,

2 including—

3 (A) creation of a Government-sponsored en4 terprise to stimulate the flow of capital to manu5 facturing;

6 (B) increasing technical advice to banks

7 and other financial institutions, perhaps through

8 the Manufacturing Extension Partnership in

9 order to increase their ability to judge whether or

10 not individual manufacturers have sound mod11 ernization plans;

12 (C) cooperation between extension activities

13 supported under the Manufacturing Extension

14 Partnership and manufacturing equipment leas15 ing firms in order to provide manufacturers

16 with additional information or equipment leas17 ing options; and

18 (D) tax incentives.

19 Subtitle B—National Science Foun20 dation Manufacturing Programs

21 SEC. 221. NATIONAL SCIENCE FOUNDATION MANUFACTUR22 ING PROGRAMS.

23 (a) IN GENERAL.—The Director of the National

24 Science Foundation, after, as appropriate, consultation
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1 with the Secretary, the Under Secretary, and the Director,

2 shall—

3 (1) work with United States companies to iden4 tify areas of research in advanced manufacturing

5 technologies and advanced workplace practices that

6 offer the potential to improve United States produc7 tivity, competitiveness, and employment;

8 (2) support research at United States univer9 sities to improve advanced manufacturing tech10 nologies and advanced workplace practices; and

11 (3) work with the Technology Administration of

12 the Department of Commerce and the Institute and,

13 as appropriate, other Federal agencies to accelerate

14 the transfer to United States companies of manufac15 turing research and innovations developed at univer16 sities.

17 (b) ENGINEERING RESEARCH CENTERS AND INDUS18 TRY/UNIVERSITY COOPERATIVE RESEARCH CENTERS.—The

19 Director of the National Science Foundation shall strength20 en and expand the number of Engineering Research Centers

21 and strengthen and expand the Industry/University Cooper22 ative Research Centers Program with the goals of increasing

23 the engineering talent base versed in technologies and work24 place practices critical to the Nation’s future, with empha25 sis on advanced manufacturing technologies, and of advanc-
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1 ing fundamental engineering knowledge in these tech2 nologies. At least one Engineering Research Center shall

3 have a research and education focus on the concerns of

4 United States manufacturers, including small- and me5 dium-sized manufacturers that are trying to modernize

6 their operations. Awards under this subsection shall be

7 made on a competitive, merit review basis. Such awards

8 may include support for acquisition of instrumentation,

9 equipment, and facilities related to the research and edu10 cation activities of the Engineering Research Centers and

11 support for undergraduate students to participate in the ac12 tivities of the Engineering Research Centers.

13 (c) GRADUATE TRAINEESHIPS.—The Director of the

14 National Science Foundation, in consultation with the Sec15 retary, may establish a program to provide traineeships to

16 United States citizens or permanent resident aliens who are

17 graduate students at institutions of higher education within

18 the United States who choose to pursue masters or doctoral

19 degrees in manufacturing or industrial engineering. The

20 Director of the National Science Foundation shall make an

21 effort to ensure the provision of traineeships under this sub22 section to socially and economically disadvantaged individ23 uals (within the meaning of section 8(a) (5) and (6) of the

24 Small Business Act, and including women).
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1 (d) MANUFACTURING MANAGERS IN THE CLASSROOM

2 PROGRAM.—The Director of the National Science Founda3 tion, in consultation with the Secretary, may establish a

4 program to provide fellowships, on a cost-shared basis, to

5 individuals from industry with experience in manufactur6 ing to serve for 1 or 2 years as instructors in manufactur7 ing at 2-year community and technical colleges in the Unit8 ed States. In selecting fellows, the Director of the National

9 Science Foundation shall place special emphasis on sup10 porting individuals who not only have expertise and prac11 tical experience in manufacturing but who also will work

12 to foster cooperation between 2-year colleges and nearby

13 manufacturing firms.

14 (e) PROGRAMS TO TEACH TOTAL QUALITY MANAGE15 MENT.—The Director of the National Science Foundation,

16 in consultation with the Secretary, the Under Secretary,

17 and the Director, may establish a program to develop inno18 vative curricula, courses, and materials for use by institu19 tions of higher education for instruction in total quality

20 management and related management practices, in order

21 to help improve the productivity of United States compa22 nies.

23 (f) SMALL MANUFACTURERS RENEWAL AND TRAIN24 ING.—(1) The Director of the National Science Foundation,

25 acting in cooperation with the Director, shall establish and
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1 carry out a pilot program, known as the Small Manufac2 turers Renewal and Training Program in this subsection

3 referred to as the ‘‘Program’’), to award grants to eligible

4 partnerships for internship activities under this section.

5 Partnerships between engineering colleges and manufactur6 ing extension centers are eligible to apply for grants under

7 the Program and be designated as SMaRT Partnerships.

8 The Director of the National Science Foundation shall es9 tablish requirements for proposals for funding under the

10 Program, for activities undertaken by SMaRT Partnerships

11 with such funding, and for reporting by SMaRT Partner12 ships and other persons participating in the Program, and

13 criteria for selecting proposals, including economic need.

14 (2) Each SMaRT Partnership receiving a grant

15 under the Program shall use such grant funds to

16 sponsor qualified engineering students to work as in17 terns with eligible small manufacturers, especially

18 very small manufacturers, by paying the host com19 pany the Federal share of the intern’s wages, not to

20 exceed the Federal minimum wage.

21 (3) A small manufacturer shall be eligible to host

22 interns under the Program only for manufacturing

23 operations in the United States, shall provide ade24 quate supervision to each intern, and shall use funds

25 provided under the Program only to pay wages to the
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1 intern that supplement the host company share of the

2 intern’s wages, not be less than the Federal minimum

3 wage. No company shall be eligible to receive funding

4 in excess of 2 years’ wages at the Federal minimum

5 wage.

6 TITLE III—CRITICAL

7 TECHNOLOGIES

8 SEC. 301. DEVELOPMENT OF PLAN FOR THE ADVANCED

9 TECHNOLOGY PROGRAM.

10 The Secretary, acting through the Under Secretary

11 and the Director, shall, within 6 months after the date of

12 enactment of this Act, submit to Congress a plan for the

13 expansion of the Advanced Technology Program established

14 under section 28 of the National Institute of Standards and

15 Technology Act (15 U.S.C. 278n), with specific consider16 ation given to—

17 (1) closer coordination and cooperation with the

18 Advanced Research Projects Agency and other Federal

19 research and development agencies as appropriate;

20 (2) establishment of temporary staff positions

21 that can be filled by industrial or technical experts

22 for a period of 1 to 2 years;

23 (3) ensuring that the Advanced Technology Pro24 gram will have a meaningful impact on the utiliza25 tion of a broad range of critical technologies and on
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1 the refinement of advanced manufacturing tech2 nologies;

3 (4) changes that may be needed when annual

4 funds available for grants under the Advanced Tech5 nology Program reach levels of $200,000,000 and

6 $500,000,000; and

7 (5) any additional administrative steps that

8 may be necessary for the Advanced Technology Pro9 gram to support large-scale joint research and devel10 opment ventures.

11 SEC. 302. LARGE-SCALE RESEARCH AND DEVELOPMENT

12 CONSORTIA.

13 Section 28 of the National Institute of Standards and

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

15 the end the following new subsection:

16 ‘‘(k) In addition to the general authority under this

17 section to provide financial assistance to joint ventures, the

18 Secretary, through the Director, also may, as permitted by

19 levels of authorizations and appropriations, provide finan20 cial support for up to 7 years to large-scale joint ventures

21 requesting $20,000,000 or more a year in Department of

22 Commerce funds. The Secretary may work with industrial

23 groups to develop such proposed large-scale joint ventures

24 and shall give preference to proposals which represent a

25 broad spectrum of companies for a given industry and
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1 which focus either on speeding the commercialization of im2 portant new technologies or on accelerating the develop3 ment, testing, and deployment of valuable new process tech4 nologies and workplace practices. The Secretary and Direc5 tor, as appropriate, shall obtain independent technical re6 view of industry proposals submitted under this sub7 section.’’.

8 SEC. 303. TECHNICAL AMENDMENTS.

9 (a) AMENDMENTS TO THE NATIONAL INSTITUTE OF

10 STANDARDS AND TECHNOLOGY ACT.—Section 28 of the Na11 tional Institute of Standards and Technology Act (15

12 U.S.C. 278n), as amended by section 302 of this Act, is

13 further amended—

14 (1) by adding at the end of subsection (a), the

15 following new sentence: ‘‘The Secretary, acting

16 through the Director, shall ensure that the principal

17 economic benefits of the Program accrue to the econ18 omy of the United States.’’;

19 (2) in subsection (b)—

20 (A) in paragraph (1)(B), by striking ‘‘or

21 contracts’’ and inserting in lieu thereof ‘‘con22 tracts, and, subject to the last sentence of this

23 subsection, other transactions’’;

24 (B) strike paragraph (1)(B)(ii) and replace

25 with: ‘‘participation in such joint ventures, if the
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1 Secretary, acting through the Director, deter2 mines participation to be appropriate and if the

3 joint venture as a whole agrees to pay at least

4 half of the total costs of such joint ventures dur5 ing the participation period, which shall not ex6 tend beyond 5 years,’’;

7 (C) in paragraph (2) by striking ‘‘and co8 operative agreements’’ and inserting in lieu

9 thereof ‘‘cooperative agreements, and, subject to

10 the last sentence of this subsection, other trans11 actions’’; and

12 (D) by adding after paragraph (4) the fol13 lowing: ‘‘The authority under paragraph (1)(B)

14 and paragraph (2) to enter into other trans15 actions shall apply only if the Secretary, acting

16 through the Director, determines that standard

17 contracts, grants, or cooperative agreements are

18 not feasible or appropriate, and only when other

19 transaction instruments incorporate terms and

20 conditions that reflect the use of generally accept21 ed commercial accounting and auditing prac22 tices.’’;

23 (3) in subsection (d)(3), by striking

24 ‘‘$2,000,000’’; and inserting in lieu thereof

25 ‘‘$3,000,000’’.
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1 (4) by adding at the end the following new

2 subsection: ‘‘(1) Notwithstanding subsections

3 (b)(1)(B)(ii) and (d)(3), the Director may grant

4 an extension beyond the deadlines established

5 under those subsections for joint venture and sin6 gle applicant awardees to expend Federal funds

7 to complete their projects, if such extension may

8 be granted with no additional cost to the Federal

9 Government.’’.

10 (b) UNITED STATES JOINT VENTURES.—(1) Section

11 28(d)(11)(A) of the National Institute of Standards and

12 Technology Act (15 U.S.C. 278n(d)(11)(A)) is amended by

13 striking the period at the end of the first sentence and in14 serting in lieu thereof the following: ‘‘or any other person

15 otherwise eligible to participate in an eligible joint venture,

16 as agreed by the parties, receiving funding under any par17 ticular award, notwithstanding the requirements of section

18 202 (a) and (b) of title 35, United States Code.’’.

19 (2) The amendments made by sections 303 (a) and (b)

20 shall be effective only with respect to assistance for which

21 solicitations for proposals are made after the date of enact22 ment of this Act or October 1, 1994, whichever occurs later.

23 (c) AMENDMENTS TO THE AMERICAN TECHNOLOGY

24 PREEMINENCE ACT OF 1991.—(1) Section 201(d) of the

25 American Technology Preeminence Act of 1991 (15 U.S.C.
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1 278n note) is amended by adding at the end the following

2 new sentence: ‘‘In the case of the amendment made by sub3 paragraph (A) of subsection (c)(6), such amendment shall

4 be effective as of the date of enactment of the paragraph

5 stricken by such subparagraph.’’.

6 (2) Section 507 of the American Technology Pre7 eminence Act of 1991 (15 U.S.C. 3717) is repealed.

8 (d) AMENDMENTS TO THE NATIONAL SCIENCE AND

9 TECHNOLOGY POLICY, ORGANIZATION, AND PRIORITIES

10 ACT.—(1) Title IV of the National Science and Technology

11 Policy, Organization, and Priorities Act of 1976 (42 U.S.C.

12 6651) is amended to read as follows:

13 ‘‘TITLE IV—NATIONAL SCIENCE

14 AND TECHNOLOGY COUNCIL

15 ‘‘SEC. 401. There is established a National Science and

16 Technology Council (hereafter in this title referred to as the

17 ‘Council’).

18 ‘‘SEC. 402. Within 30 days after the date of enactment

19 of the National Competitiveness Act of 1994, the President

20 shall submit to Congress a report that outlines the composi21 tion and functions of the Council.

22 ‘‘SEC. 403. (a) The Council shall assume the respon23 sibilities and authorities of the Federal Coordinating Coun24 cil for Science, Engineering, and Technology, the National
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1 Space Council, and the National Critical Materials Coun2 cil.

3 ‘‘(b) Executive departments and agencies shall make

4 resources, including, but not limited to, personnel, office

5 support, and printing, available to the Council.

6 ‘‘(c) The Council is authorized to establish such com7 mittees and working groups as it may require.’’.

8 (2) The Federal Coordinating Council for Science, En9 gineering, and Technology established by Public Law 94–

10 282 and by Executive Order 12039, the National Space

11 Council established by Public Law 100-685 and Executive

12 Order 12675, and the National Critical Materials Council

13 established by Public Law 98–373 are hereby abolished.

14 (3) Section 207(c) of the National Science and Tech15 nology Policy, Organization, and Priorities Act of 1976 (42

16 U.S.C. 6616(c)) is amended—

17 (A) by amending paragraph (1) to read as fol18 lows:

19 ‘‘(1) appoint such officers and employees as deemed

20 necessary to perform the functions now or hereafter vested

21 in the Director without regard to any provision of law regu22 lating the employment or compensation of persons in the

23 Government service, at rates not to exceed the rate of pay

24 for level VI of the Senior Executive schedule as provided
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1 pursuant to section 5382 of title 5, the United States Code,

2 and to prescribe their duties;’’; and

3 (B) by striking ‘‘and’’ at the end of paragraph

4 (2); by striking the period at the end of paragraph (3)

5 and inserting in lieu thereof ‘‘; and’’; and by adding

6 at the end the following new paragraph:

7 ‘‘(4) accept voluntary and uncompensated services,

8 notwithstanding the provisions of section 1342, title 31,

9 United States Code.’’.

10 SEC. 304. TECHNOLOGY MONITORING AND COMPETITIVE11 NESS ASSESSMENT.

12 Section 101 of the Stevenson-Wydler Technology Inno13 vation Act of 1980, as redesignated by section 213(2) of this

14 Act, is amended by striking subsection (e) and inserting in

15 lieu thereof the following new subsections:

16 ‘‘(e) OFFICE OF TECHNOLOGY MONITORING AND COM17 PETITIVENESS ASSESSMENT.—(1) The Secretary, through

18 the Under Secretary, shall establish within the Technology

19 Administration an Office of Technology Monitoring and

20 Competitiveness Assessment, to collect, evaluate, assess, and

21 disseminate to United States industry, State and local gov22 ernments, nonprofit organizations, and other interested

23 parties information on—
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1 ‘‘(A) foreign science and technology, specifically

2 information assessing foreign capabilities relative to

3 the United States;

4 ‘‘(B) policies and programs used by foreign gov5 ernments and industries to develop and apply eco6 nomically important critical technologies, how these

7 policies and programs compare with public and pri8 vate activities in the United States, and the effects

9 that these foreign policies and programs have on the

10 competitiveness of United States industry; and

11 ‘‘(C) the way in which the economic competitive12 ness of United States industry can be enhanced

13 through Federal programs, including Department of

14 Commerce programs, and evaluations of the effective15 ness of Federal technology programs in helping to

16 promote United States industrial competitiveness and

17 economic growth.

18 ‘‘(2) Based on the information gathered under para19 graph (1), the President, with the assistance of the Sec20 retary, shall submit to Congress an annual report on Unit21 ed States technology and competitiveness analyzing the con22 dition of United States technology relative to major trading

23 partners, key trends in foreign technology and competitive24 ness policies and targeting, and the degree to which Federal

25 programs are helping the United States to stay competitive
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1 with other countries and create domestic employment op2 portunities.

3 ‘‘(3) The Office of Technology Monitoring and Com4 petitiveness Assessment is authorized to—

5 ‘‘(A) act as a focal point within the Federal Gov6 ernment for the collection and dissemination, includ7 ing electronic dissemination, of information on for8 eign process and product technologies, including in9 formation collected under the Japanese Technical Lit10 erature Program;

11 ‘‘(B) work and, as appropriate, enter into coop12 erative arrangements with sector-specific industry

13 trade associations or consortia to define the informa14 tion desired by industry;

15 ‘‘(C) compile and make available the extensive

16 foreign technology monitoring and assessment infor17 mation already collected and analyzed by the Federal

18 Government;

19 ‘‘(D) as appropriate, enter into controlled access

20 agreements with other Federal agencies to fill the in21 dustry’s information needs;

22 ‘‘(E) act as an electronic clearinghouse for such

23 information or otherwise provide for such a clearing24 house;
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1 ‘‘(F) direct and fund the collection of additional

2 related information;

3 ‘‘(G) direct and fund analysis of foreign research

4 and development activities, technical capabilities,

5 workplace practices, particularly in technical areas

6 where the United States is considered to be at par or

7 lagging foreign capabilities;

8 ‘‘(H) establish a program to identify technical

9 areas needing a full-scale technical evaluation, and

10 provide, on a cost-shared basis to private sector or

11 government-industry joint ventures, grants to conduct

12 the evaluation; and

13 ‘‘(I) work with the Department of State to place

14 technical experts from the Institute and other Federal

15 laboratories into United States embassies to serve as

16 technology attaches and counselors.

17 ‘‘(f) FELLOWSHIP PROGRAM.—(1) The Secretary, act18 ing through the Under Secretary, shall establish and ad19 minister a fellowship program to support Technology Fel20 lows to assist the Under Secretary in carrying out activities

21 under subsection (e) relating to those countries that are

22 major competitors of the United States in critical tech23 nologies, and to identify opportunities for technology trans24 fer to the United States or technological collaboration for

25 United States industries.
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1 ‘‘(2) Technology Fellows shall—

2 ‘‘(A) regularly report to the Department of Com3 merce on work planned, in progress, and accom4 plished; and

5 ‘‘(B) provide support to the Department of Com6 merce as requested by that Department.

7 ‘‘(3) Fellowships awarded under the program estab8 lished under this subsection shall—

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

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

11 ‘‘(C) include provisions for living and office ar12 rangements in the host country.

13 ‘‘(4) Only individuals who—

14 ‘‘(A) have at least a bachelors degree in engineer15 ing or science; and

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

17 manufacturing or technology development,

18 shall be eligible for a fellowship under this program.’’.

19 SEC. 305. RECOUPMENT.

20 Section 28 of the National Institute of Standards and

21 Technology Act (15 U.S.C. 278n), as amended by this Act,

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

23 subsection:

24 ‘‘(n)(1) Any transaction providing assistance under

25 this section may include a clause that requires the recipient
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1 to make payments to the Department of Commerce as a con2 dition of receiving such assistance.

3 ‘‘(2) There is established on the books of the Treasury

4 a separate account for the Advanced Technology Program

5 established under this section. Amounts received by the

6 United States pursuant to a requirement imposed under

7 paragraph (1) may be credited to the extent authorized by

8 the Secretary, to the account established under this para9 graph. Amounts so credited shall be merged with other funds

10 in the account and shall be available, to the extent provided

11 in advance in appropriations Acts, for the same purposes

12 and the same period for which other funds in such account

13 are available.’’.

14 SEC. 306. TECHNOLOGY FINANCING PILOT PROGRAM.

15 The Stevenson-Wydler Technology Innovation Act of

16 1980 (15 U.S.C. 3701 et seq.), as amended by title II of

17 this Act, is further amended by adding at the end the follow18 ing new title:

19 ‘‘TITLE III—ADDITIONAL

20 ASSISTANCE TO INDUSTRY

21 ‘‘SEC. 301. FINDINGS AND STATEMENT OF POLICY.

22 ‘‘Congress finds and declares the following:

23 ‘‘(1) In recent years, United States technology

24 firms appear to have had increasing difficulty financ25 ing the development and early-stage commercializa-
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1 tion of important new critical civilian technologies.

2 Venture capital is less available than in past years;

3 banks appear less willing to provide loans; and me4 dium-sized as well as small companies often have

5 problems financing promising long-term technology

6 projects.

7 ‘‘(2) This difficulty in obtaining financing par8 ticularly hurts those technology firms which face for9 eign competitors which have received substantial di10 rect or indirect financial help from their respective

11 governments.

12 ‘‘(3) The Nation would benefit from a technology

13 financing pilot program designed to assist, on an ex14 perimental basis, private-sector venture capital enti15 ties which, in turn, can select and support the most

16 promising and valuable long-term United States tech17 nology projects.

18 ‘‘SEC. 302. TECHNOLOGY FINANCING PILOT PROGRAM.

19 ‘‘(a) ESTABLISHMENT OF PROGRAM.—(1) There is es20 tablished a Department of Commerce-Small Business Ad21 ministration Pilot Technology Financing Partnership Pro22 gram (in this section referred to as the ‘Pilot Program’).

23 ‘‘(2) The Pilot Program shall be operated under the

24 direction of a Department of Commerce-Small Business Ad25 ministration Venture Capital Licensing Committee (in this
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1 section referred to as the ‘Licensing Committee’), which

2 shall consist of—

3 ‘‘(A) three Department of Commerce designees

4 appointed by the Secretary, one of whom shall be the

5 Under Secretary for Technology and shall serve as

6 chair of the Licensing Committee, and the other two

7 of whom shall be technology experts, at least one of

8 whom shall also be a finance and investment expert;

9 and

10 ‘‘(B) two Small Business Administration des11 ignees who are appointed by the Administrator of the

12 Small Business Administration (in this section re13 ferred to as the ‘Administrator’) who shall be finance

14 and investment experts.

15 ‘‘(3) Under the Pilot Program, for the purpose of stim16 ulating and expanding the flow of private capital to eligible

17 technology firms and eligible joint ventures—

18 ‘‘(A) the Licensing Committee may license, pur19 suant to joint regulations promulgated under para20 graph (4), private-sector entities, to be known as ‘ci21 vilian technology investment companies’; and

22 ‘‘(B) to the extent directed by the Secretary and

23 the Administrator and provided in advance in appro24 priations Acts, and in accordance with the operating

25 plan developed under subsection (f), the Licensing
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1 Committee may authorize the Small Business Admin2 istration to assist financially such civilian technology

3 investment companies.

4 ‘‘(4) The Secretary and the Administrator, acting

5 through the Licensing Committee, shall promulgate such

6 regulations (in this section referred to as the ‘joint regula7 tions’) as shall be necessary to carry out the Pilot Program.

8 Such joint regulations shall reflect that the Administrator

9 will have primary responsibility for executing the Pilot

10 Program, using Small Business Administration personnel

11 and the programmatic authority provided in this section,

12 and applicable law. In accordance with the operating plan

13 developed by the Licensing Committee under subsection (f),

14 the Administrator may issue regulations modifying and

15 augmenting existing Small Business Administration au16 thority or program criteria, as necessary, to accommodate

17 the special needs of the Pilot Program. Those Small Busi18 ness Administration regulations which are modified or

19 adopted to facilitate the Pilot Program shall also be re20 viewed by the Licensing Committee and, if approved by the

21 Licensing Committee, shall become part of the joint regula22 tions.

23 ‘‘(5) The Secretary shall, utilizing Department of

24 Commerce technology personnel and the programmatic au25 thority provided in this section and under applicable law,
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1 institute and implement a complementary information and

2 technical assistance pilot program designed to facilitate

3 matches between high-technology companies seeking financ4 ing and venture capitalists looking for meritorious early5 stage critical technology investments.

6 ‘‘(6) Such funds as may be appropriated through this

7 Act or any other Act to the Department of Commerce to

8 implement the Pilot Program may be transferred by the

9 Secretary to the Small Business Administration, as nec10 essary to carry out the purposes of this section, in accord11 ance with subsection (c)(1).

12 ‘‘(b) ACTIVITIES OF LICENSEES.—(1) Each civilian

13 technology investment company licensed under this section

14 may provide venture capital and loans to eligible technology

15 firms and eligible joint ventures in such manner and under

16 such terms as the licensee may fix in accordance with the

17 joint regulations. Civilian technology investment companies

18 may provide venture capital and loans directly or in

19 coinvestments with other investors. The type of financing

20 to be provided shall be determined by the Licensing Com21 mittee, and shall include but shall not be limited to that

22 provided by the Small Business Act or the Small Business

23 Investment Act of 1958, or any regulation promulgated

24 thereunder.
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1 ‘‘(2) Each civilian technology investment company

2 shall have authority to borrow money and to issue its deben3 tures, promissory notes, securities, or other obligations

4 under such general conditions and subject to such limita5 tions and regulations as prescribed in the joint regulations.

6 ‘‘(c) ASSISTANCE TO LICENSEES.—(1) In order to en7 courage the formation and growth of civilian technology in8 vestment companies, the Licensing Committee is authorized,

9 to the extent that funds are made available to the Depart10 ment of Commerce in appropriations Acts, to transfer such

11 funds as may be necessary to the Small Business Adminis12 tration to purchase (or guarantee the timely payment of

13 all principal, interest, and dividends, as scheduled, on) de14 bentures or participating, nonvoting preferred securities is15 sued by such companies, on such terms and conditions as

16 are appropriate pursuant to the joint regulations to carry

17 out the purposes of this section. The Small Business Admin18 istration is also authorized, in accordance with sections 321

19 and 322 of the Small Business Investment Act of 1958, and

20 regulations promulgated thereunder, to issue and guarantee

21 such trust certificates as are necessary and appropriate to

22 provide funding for qualified civilian technology investment

23 companies. Such issuance and funding shall take place in

24 the manner and on the terms and conditions as the Licens25 ing Committee directs and shall not be limited to the terms
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1 and conditions that the Small Business Administration uti2 lizes for funding of small business investment companies

3 under the Small Business Investment Act of 1958.

4 ‘‘(2) Guarantees and purchases of debentures and eq5 uity securities under this subsection shall be made on such

6 terms and conditions as are necessary to ensure that the

7 cost of the program established under this section shall not

8 exceed 15 percent of its corresponding credit authority in

9 any fiscal year. For the purposes of this subsection, the term

10 ‘cost’ shall have the same meaning given such term in sec11 tion 502(5) of the Federal Credit Reform Act of 1990, and

12 the term ‘credit authority’ shall have the same meaning

13 given such term in section 3(10) of the Congressional Budg14 et Act of 1974.

15 ‘‘(d) PURPOSES AND REQUIREMENTS.—The Licensing

16 Committee shall require that any civilian technology invest17 ment company licensed and assisted under this section

18 shall—

19 ‘‘(1) focus primarily on providing patient early20 stage capital, either loans or equity investments, to el21 igible technology firms and eligible joint ventures in

22 the United States in order to help those firms and

23 joint ventures finance and accelerate the development

24 and early-stage commercialization of critical civilian

25 technologies;
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1 ‘‘(2) provide financial assistance to critical civil2 ian technology projects at eligible technology firms

3 and eligible joint ventures: Provided, however, That

4 the Department of Commerce members of the Licens5 ing Committee shall determine whether the products,

6 processes, and services provided by firms assisted by

7 a licensee in fact will assist in developing United

8 States critical technologies;

9 ‘‘(3) demonstrate to the Licensing Committee

10 credible procedures for ensuring that investments are

11 made in critical technology projects for which eligible

12 technology firms cannot obtain necessary financing

13 solely through commercial capital markets; and

14 ‘‘(4) work with the Licensing Committee to es15 tablish methods to identify and evaluate projects to be

16 assisted by the licensee, using, as appropriate, the ex17 isting expertise of the National Institute of Standards

18 and Technology, and other organizations, including

19 Regional Centers for the Transfer of Manufacturing

20 Technology, universities, and other research institu21 tions.

22 ‘‘(e) PAYMENTS.—All amounts received by the Small

23 Business Administration from the payment of dividends,

24 any profit allocation, the redemption of securities pursuant

25 to this section, and any fees paid to the United States by
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1 a civilian technology investment company licensed pursu2 ant to this section, shall be deposited in the Treasury, in

3 accordance with the joint regulations and the requirements

4 of the Federal Credit Reform Act of 1990.

5 ‘‘(f) OPERATING PLAN; EFFECTIVE DATE; AND EVAL6 UATION.—(1) The Secretary and the Administrator, acting

7 through the Licensing Committee, shall jointly and in con8 sultation with State and local governments, industry, and

9 the financial community, prepare and submit to Congress

10 within one year after the date of enactment of this title,

11 an operating plan and draft joint regulations to carry out

12 this section. In preparing such a plan, the Secretary and

13 Administrator shall consider and evaluate alternative ap14 proaches to help technology firms and joint ventures in the

15 United States develop and commercialize critical civilian

16 technologies. As part of their report, they shall make rec17 ommendations to Congress as they deem appropriate.

18 ‘‘(2) Except for the requirements set forth in subsection

19 (a) and paragraph (1) of this subsection, the provisions of

20 this section shall not take effect until 6 months after the

21 date of the issuance of the report required in paragraph

22 (1).

23 ‘‘(3) After appropriations are provided for the Pilot

24 Program authorized under this section, the Licensing Com25 mittee, in consultation with industry and the financial
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1 community, shall evaluate annually the effectiveness of the

2 Program and submit an annual report to appropriate com3 mittees of Congress on the findings resulting from such eval4 uation. Such report shall contain, on a confidential basis,

5 appendices which include, but are not necessarily limited

6 to, the type and amount of assistance provided to licensees

7 under this section, key characteristics of such licensees, the

8 number and size in net worth of the technology firms and

9 joint ventures (and the participants comprising them) as10 sisted by each licensee, the amount of assistance provided

11 to each eligible technology firm or eligible joint venture, and

12 the types of technology each eligible technology firm or joint

13 venture is developing and commercializing. Such report

14 also shall contain an analysis of the Pilot Program’s im15 pact on the Small Business Administration’s Small Busi16 ness Investment Company program.

17 ‘‘(4) Five years after appropriations have been pro18 vided for the Pilot Program authorized under this section,

19 the General Accounting Office, in consultation with indus20 try and the financial community, shall evaluate the effec21 tiveness of the Program and submit a report to appropriate

22 committees of Congress on the findings resulting from such

23 evaluation. Such evaluation shall include an analysis of the

24 Pilot Program’s impact on the Small Business Administra25 tion’s Small Business Investment Company program.
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1 ‘‘(g) DEFINITIONS.—As used in this section, the

2 term—

3 ‘‘(1) ‘appropriate committees of Congress’ means

4 the Committee on Science, Technology, and Space and

5 Committee on Small Business of the House of Rep6 resentatives and the Committee on Commerce,

7 Science, and Transportation and Committee on

8 Small Business of the Senate;

9 ‘‘(2) ‘critical civilian technology’ means a tech10 nology not exclusively military which is identified in

11 one or more of the biennial national critical tech12 nologies reports required under section 603 of the Na13 tional Science and Technology Policy, Organization,

14 and Priorities Act of 1976 (42 U.S.C. 6683);

15 ‘‘(3) ‘eligible joint venture’ means a joint re16 search and development venture or joint production

17 venture, as defined in section 2 of the National Coop18 erative Research Act of 1984 (5 U.S.C. 4301)—

19 ‘‘(A) which meets the requirements of sec20 tion 28(d)(9) of the National Institute of Stand21 ards and Technology Act (15 U.S.C. 278n(d)(9));

22 ‘‘(B) whose purpose in seeking financing is

23 the development of products, processes, and serv24 ices based on critical civilian technologies; and
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1 ‘‘(C) which meets size standards set by the

2 Licensing Committee, which size standards need

3 not comply with the Small Business Act or the

4 Small Business Investment Act of 1958, or any

5 regulation promulgated thereunder or interpreta6 tion thereof;

7 ‘‘(4) ‘eligible technology firm’ means a com8 pany—

9 ‘‘(A) which meets the requirements of sec10 tion 28(d)(9) of the National Institute of Stand11 ards and Technology Act (15 U.S.C. 278n(d)(9));

12 ‘‘(B) whose purpose in seeking financing is

13 the development of products, processes, and serv14 ices based on critical civilian technologies; and

15 ‘‘(C) which meets size standards set by the

16 Administrator;

17 ‘‘(4) ‘finance and investment expert’ means an

18 individual who has administered or participated in a

19 venture capital or similar financing program, or has

20 operated a venture capital company; and

21 ‘‘(5) ‘licensee’ means a civilian technology invest22 ment company licensed by the Licensing Committee

23 pursuant to this section.’’.
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1 SEC. 307. REPORTS ON FOREIGN INDUSTRIAL ESPIONAGE.

2 (a) IN GENERAL.—(1) In order to assist Congress in

3 its oversight functions with respect to this Act and to im4 prove the awareness of United States industry of foreign

5 industrial espionage and the ability of such industry to pro6 tect against such espionage, the President shall submit to

7 Congress a report that describes, as of the time of the report,

8 the following:

9 (A) The respective policy functions and oper10 ational roles of the agencies of the executive branch of

11 the Federal Government in identifying and counter12 ing threats to United States industry of foreign in13 dustrial espionage, including the manner in which

14 such functions and roles are coordinated.

15 (B) The means by which the Federal Government

16 communicates information on such threats, and on

17 methods to protect against such threats, to United

18 States industry in general and to United States com19 panies known to be targets of foreign industrial espio20 nage.

21 (C) The specific measures that are being or could

22 be undertaken in order to improve the activities re23 ferred to in subparagraphs (A) and (B), including

24 proposals for any modifications of law necessary to

25 facilitate the undertaking of such activities.
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1 (D) The threat to United States industry of for2 eign industrial espionage and any trends in that

3 threat, including—

4 (i) the number and identity of the foreign

5 governments conducting foreign industrial espio6 nage;

7 (ii) the industrial sectors and types of infor8 mation and technology targeted by such espio9 nage; and

10 (iii) the methods used to conduct such espio11 nage.

12 (2) The President shall submit the report required

13 under this subsection not later than 6 months after the date

14 of the enactment of this Act.

15 (b) ANNUAL UPDATE.—Not later than 1 year after the

16 date referred to in paragraph (2) of subsection (a), and on

17 the expiration of each year thereafter, the President shall

18 submit to Congress a report updating the information re19 ferred to in paragraph (1)(D) of that subsection.

20 (c) FORM OF REPORTS.—To the maximum extent

21 practicable, the reports referred to in subsections (a) and

22 (b) shall be submitted in an unclassified form, but may be

23 accompanied by a classified appendix.

24 (d) REPORT UNDER DEFENSE PRODUCTION ACT.—

25 Section 721(k)(1)(B) of the Defense Production Act of 1950
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1 (50 U.S.C. App. 2170(k)(1)(B)) is amended by inserting

2 ‘‘or directly assisted’’ after ‘‘directed’’.

3 (e) DEFINITION.—For the purposes of this section,

4 ‘‘foreign industrial espionage’’ means industrial espionage

5 conducted by a foreign government or by a foreign company

6 with direct assistance of a foreign government against a

7 private United States company and aimed at obtaining

8 commercial secrets.

9 TITLE IV—ADDITIONAL COM10 MERCE DEPARTMENT PROVI11 SIONS

12 SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY ADVI13 SORY BOARD.

14 The Stevenson-Wydler Technology Innovation Act of

15 1980 (as amended by sections 211 and 213 of this Act) is

16 further amended by inserting after section 103 (as added

17 by section 211 of this Act) the following new section:

18 ‘‘SEC. 104. DEPARTMENT OF COMMERCE TECHNOLOGY AD19 VISORY BOARD.

20 ‘‘(a) ESTABLISHMENT.—There is established a Depart21 ment of Commerce Technology Advisory Board (in this sec22 tion referred to as the ‘Advisory Board’), the purpose of

23 which is to advise the Secretary, Under Secretary, and Di24 rector on the plans, programs, and policies of the Tech25 nology Administration, including ways in which to—
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1 ‘‘(1) promote the development and rapid appli2 cation of advanced commercial technologies, including

3 advanced manufacturing technologies such as skill4 based production technologies;

5 ‘‘(2) strengthen the programs of the Technology

6 Administration; and

7 ‘‘(3) generally improve the global competitiveness

8 of industries within the United States.

9 ‘‘(b) COMPOSITION.—The Advisory Board shall be

10 composed of at least 17 members, appointed by the Under

11 Secretary from among individuals who, because of their ex12 perience and accomplishments in technology development,

13 business development, or finance are exceptionally qualified

14 to analyze and formulate policy that would improve the

15 global competitiveness of industries in the United States.

16 The Under Secretary shall designate one member to serve

17 as chairman. Membership of the Advisory Board shall be

18 composed of—

19 ‘‘(1) representatives of—

20 ‘‘(A) United States small businesses;

21 ‘‘(B) United States manufacturers;

22 ‘‘(C) research universities and independent

23 research institutes;

24 ‘‘(D) State and local government agencies

25 involved in industrial extension;
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1 ‘‘(E) national laboratories;

2 ‘‘(F) industrial, worker, and technical and

3 professional organizations; and

4 ‘‘(G) financial organizations; and

5 ‘‘(2) other individuals that possess important in6 sight to issues of national competitiveness.

7 The Under Secretary shall make an effort to ensure the ap8 pointment of socially and economically disadvantaged indi9 viduals (within the meaning of section 8(a) (5) and (6) of

10 the Small Business Act, and including women) to the Advi11 sory Board.

12 ‘‘(c) MEETINGS.—(1) The chairman shall call the first

13 meeting of the Advisory Board not later than 90 days after

14 the date of enactment of this section.

15 ‘‘(2) The Advisory Board shall meet at least once every

16 6 months, and at the call of the Under Secretary.

17 ‘‘(d) TRAVEL EXPENSES.—Members of the Advisory

18 Board, other than full-time employees of the United States,

19 shall be allowed travel expenses in accordance with sub20 chapter I of chapter 57 of title 5, United Stated Code, while

21 engaged in the business of the Advisory Board.

22 ‘‘(e) CONSULTATION.—In carrying out this section, the

23 Under Secretary shall consult with other agencies, as ap24 propriate. The Advisory Board, as appropriate, shall estab25 lish communication and coordination mechanisms with
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1 other Federal advisory committees to help ensure integrated

2 Federal-private consideration of technology and manufac3 turing policies and programs.

4 ‘‘(f) TERMINATION.—Section 14 of the Federal Advi5 sory Committee Act shall not apply to the Advisory Board.

6 ‘‘(g) SECRETARIAL DISCRETION.—Notwithstanding

7 any other provision of this section, the Secretary shall have

8 the discretion to decide whether to establish the Advisory

9 Board or create a more cost-effective way to achieve the goal

10 of closer cooperation with industry. If the Secretary exer11 cises such discretion and establishes an alternative mecha12 nism, the Under Secretary shall make an effort to ensure

13 the participation of socially and economically disadvan14 taged individuals (within the meaning of section 8(a) (5)

15 and (6) of the Small Business Act, and including women)

16 in the alternative mechanism.’’.

17 SEC. 402. INTERNATIONAL STANDARDIZATION.

18 (a) FINDINGS.—The Congress finds that—

19 (1) private sector consensus standards are essen20 tial to the timely development of competitive products;

21 (2) Federal Government contribution of resources

22 and more active participation in the voluntary stand23 ards process in the United States can increase the

24 quality of United States standards, increase their

25 compatibility with the standards of other countries,
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1 and ease access of products manufactured by United

2 States manufacturers to foreign markets; and

3 (3) the Federal Government, working in coopera4 tion with private sector organizations including trade

5 associations, engineering societies, technical organiza6 tions, and other standards-setting bodies can effec7 tively promote Federal Government use of United

8 States consensus standards and, where appropriate,

9 the adoption and Federal Government use of inter10 national standards.

11 (b) STANDARDS PILOT PROGRAM.—Section 104(e) of

12 the American Technology Preeminence Act of 1991 (Public

13 Law 102–245; 106 Stat. 10) is amended—

14 (1) by inserting ‘‘(1)’’ before ‘‘Pursuant to the’’;

15 (2) by striking ‘‘matching funds’’ and inserting

16 in lieu thereof ‘‘financial contributions deemed appro17 priate by the Secretary’’; and

18 (3) by adding at the end the following new para19 graph:

20 ‘‘(2) As necessary and appropriate, the Institute shall

21 expand the program established under section 112 of the

22 National Institute of Standards and Technology Authoriza23 tion Act for Fiscal Year 1989 (15 U.S.C. 272 note) by ex24 tending the existing program to include other countries that

25 request assistance with standards-related activities from of-
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1 ficial representatives of the United States Government. The

2 Institute may enter into additional contracts with non-Fed3 eral organizations representing United States companies

4 described in section 28(d)(9)(B) of the National Institute

5 of Standards and Technology Act (15 U.S.C.

6 278n(d)(9)(B)) or with United States-based professional so7 cieties and other standards-setting bodies that participate

8 in the development of standards. Such contracts shall re9 quire cost sharing between Federal and non-Federal sources

10 for such purposes. In awarding such contracts, the Institute

11 shall seek to promote and support the dissemination of

12 United States technical standards to additional foreign

13 countries and shall seek, as the Director deems appropriate,

14 to promote the adoption of international standards sup15 ported by United States industry, and shall seek to assist

16 private sector developers of standards, including engineer17 ing societies which participate in the development of stand18 ards in expediting the development of domestic and other

19 standards which enable the introduction of technologies,

20 products, or technology-based services which are being de21 layed due to the lack of available standards. The Institute

22 and such contractors shall, in carrying out the preceding

23 sentence, cooperate with governmental bodies, private orga24 nizations (including standards setting organizations and

25 industry), and multinational institutions that promote eco-
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1 nomic development. The organizations receiving such con2 tracts may establish training programs to bring to the

3 United States foreign standards experts for the purpose of

4 receiving in-depth training in the United States standards

5 system.’’.

6 (c) REPORT ON GLOBAL STANDARDS.—(1) Section

7 508(a) of the American Technology Preeminence Act of

8 1991 (15 U.S.C. 3701 note) is amended—

9 (A) by inserting ‘‘standards development and

10 international’’ after ‘‘a thorough review of inter11 national’’;

12 (B) by redesignating paragraphs (1) through (5)

13 as paragraphs (2) through (6), respectively; and

14 (C) by inserting before paragraph (2), as so re15 designated, the following new paragraph:

16 ‘‘(1) Current and potential future roles of the Federal

17 Government in the development and promulgation of do18 mestic and global product and process standards.’’.

19 (2) The Secretary, in consultation with the Institute

20 and the Department of Commerce Technology Advisory

21 Board established under section 104 of the Stevenson22 Wydler Technology Innovation Act of 1980 (as added by

23 section 401 of this Act) and with, as appropriate, the active

24 participation of the private sector, shall submit to the Con25 gress a report describing the appropriate roles of the De-
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1 partment of Commerce in aid to United States companies

2 in achieving conformity assessment and accreditation and

3 otherwise qualifying their products in foreign markets,

4 through the development and promulgation of domestic and

5 global product and quality standards, and through Depart6 ment of Commerce programs related to conformity assess7 ment and accreditation procedures based upon such stand8 ards, including a discussion of the extent to which each of

9 the policy options provided in the March 1992 Office of

10 Technology Assessment report on global standards, contrib11 utes to meeting the goals of—

12 (A) increasing the international adoption of

13 standards beneficial to United States industries; and

14 (B) improving the coordination of United States

15 representation at international standards setting bod16 ies.

17 SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.

18 (a) RESTRICTIONS.—Section 111(c)(3) of the Steven19 son-Wydler Technology Innovation Act of 1980, as so redes20 ignated by section 213(5) of this Act, is amended to read

21 as follows:

22 ‘‘(3) No award shall be made within any category or

23 subcategory if there are no qualifying enterprises in that

24 category or subcategory.’’.
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1 (b) CATEGORIES IN WHICH AWARD MAY BE GIVEN.—

2 (1) Section 111(c)(1) of the Stevenson-Wydler Technology

3 Innovation Act of 1980, as so redesignated by section 213(5)

4 of this Act, is amended by adding at the end the following

5 new subparagraph:

6 ‘‘(D) Educational institutions.’’.

7 (2)(A) Within 2 years after the date of enactment of

8 this Act, the Secretary shall submit to Congress a report

9 containing—

10 (i) criteria for qualification for a Malcolm

11 Baldrige National Quality Award by various classes

12 of educational institutions;

13 (ii) criteria for the evaluation of applications for

14 such awards under section 111(d)(1) of the Stevenson15 Wydler Technology Innovation Act of 1980, as so re16 designated by section 213(5) of this Act; and

17 (iii) a plan for funding awards described in

18 clause (i).

19 (B) In preparing the report required under subpara20 graph (A), the Secretary shall consult with the National

21 Science Foundation and other public and private entities

22 with appropriate expertise, and shall provide for public no23 tice and comment.

24 (C) The Secretary shall not accept applications for

25 awards described in subparagraph (A)(i) until after the re-
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1 port required under subparagraph (A) is submitted to Con2 gress.

3 SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT

4 AGREEMENTS.

5 Section 202(d)(2)(A) of the Stevenson-Wydler Tech6 nology Innovation Act of 1980, as so redesignated by section

7 213(7) of this Act, by inserting ‘‘including Federal test and

8 evaluation facilities,’’ after ‘‘by a Federal agency,’’.

9 SEC. 405. PROGRAM EVALUATIONS.

10 Section 101 of the Stevenson-Wydler Technology Inno11 vation Act of 1980, as so redesignated by section 213(2)

12 of this Act and as amended by this Act, is further amended

13 by adding at the end the following new subsection:

14 ‘‘(g) PROGRAM EVALUATIONS.—(1) The Secretary,

15 through the Under Secretary, shall—

16 ‘‘(A) provide for the conduct of research and

17 analyses to advance knowledge of the ways in which

18 the economic competitiveness of United States compa19 nies can be enhanced through Federal programs estab20 lished under the National Competitiveness Act of 1994

21 or the amendments made by that Act; and

22 ‘‘(B) as appropriate, provide for evaluations of

23 Federal technology programs established or expanded

24 under the National Competitiveness Act of 1994 or the

25 amendments made by that Act in order to judge their
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1 effectiveness and make recommendations to improve

2 their contribution to United States competitiveness.

3 ‘‘(2) All executive departments and agencies shall as4 sist the Secretary in carrying out this subsection as appro5 priate.

6 ‘‘(3) Nothing in this subsection shall authorize the re7 lease of information to, or the use of information by, the

8 Secretary or Under Secretary in a manner inconsistent

9 with law or any procedure established pursuant thereto.

10 ‘‘(4) The head of any Federal agency may detail such

11 personnel and may provide such services, with or without

12 reimbursement, as the Secretary may request to assist in

13 carrying out the activities required under this subsection.’’.

14 SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECH15 NOLOGIES.

16 Within 9 months after the date of enactment of this

17 Act, the Critical Technologies Institute established under

18 section 822 of the National Defense Authorization Act for

19 Fiscal Year 1991 (42 U.S.C. 6686) shall, after consultation

20 with the private sector and appropriate officials from other

21 Federal agencies, submit to Congress a report on advanced

22 lithography technologies for the production of semiconductor

23 devices. The report shall include the Critical Technologies

24 Institute’s evaluation of the likely technical and economic

25 advantages and disadvantages of each such technology, an
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1 analysis of current private and Government research to de2 velop each such technology, and any recommendations the

3 Critical Technologies Institute may have regarding future

4 Federal support for research and development in advanced

5 lithography.

6 SEC. 407. CLEARINGHOUSE ON STATE AND LOCAL INITIA7 TIVES.

8 Section 105(a) of the Stevenson-Wydler Technology In9 novation Act of 1980, as so redesignated by section 213(5)

10 of this Act, is amended by striking ‘‘Office of Productivity,

11 Technology, and Innovation’’ and inserting in lieu thereof

12 ‘‘Technology Administration’’.

13 SEC. 408. WIND ENGINEERING RESEARCH PROGRAM.

14 (a) SHORT TITLE.—This section may be cited as the

15 ‘‘Wind Engineering Program Act of 1994’’.

16 (b) FINDINGS.—Congress finds and declares the follow17 ing:

18 (1) Hurricanes and tornadoes kill more Ameri19 cans and destroy more property than any other natu20 ral disaster.

21 (2) Each year, in the United States, extreme

22 winds cause billions of dollars of damage to homes,

23 schools, and other buildings, roads and bridges, elec24 trical power distribution networks, and communica25 tions networks.
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1 (3) Research on wind and wind engineering has

2 resulted in improved methods for making buildings

3 and other structures less vulnerable to extreme winds,

4 but additional research funding is needed to develop

5 new, improved, and more cost-effective methods of

6 wind-resistant construction.

7 (4) Federal funding for wind engineering re8 search has decreased drastically over the last 20 years.

9 (5) Wind research has been hampered by a lack

10 of data on near-surface wind speed and distribution

11 during hurricanes, tornadoes, and other severe storms.

12 (6) Many existing methods for wind-resistant

13 construction are inexpensive and easy to implement

14 but often they are not applied because the construc15 tion industry and the general public are unaware of

16 such methods.

17 (7) Various Federal agencies have important

18 roles to play in wind engineering research, but at

19 present there is little interagency cooperation in this

20 area.

21 (8) Establishment of a Federal Wind Engineer22 ing Program would result in new technologies for

23 wind-resistant construction, broader application of

24 such technologies in construction, and ultimately de25 creased loss of life and property due to extreme winds.
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1 (c) PURPOSE.—The purpose of this section is to create

2 a Wind Engineering Program within the National Institute

3 of Standards and Technology, which would—

4 (1) provide for wind engineering research;

5 (2) serve as a clearinghouse for information on

6 wind engineering; and

7 (3) improve interagency coordination on wind

8 engineering research between the National Institute of

9 Standards and Technology, the National Oceanic and

10 Atmospheric Administration, the National Science

11 Foundation, the Federal Aviation Administration,

12 and other appropriate agencies.

13 (d) ESTABLISHMENT.—Within the National Institute

14 of Standards and Technology, there shall be established a

15 Wind Engineering Program which shall—

16 (1) conduct research and development, in co17 operation with the private sector and academia, on

18 new methods for mitigating wind damage due to tor19 nadoes, hurricanes, and other severe storms;

20 (2) fund construction and maintenance of wind

21 tunnels and other research facilities needed for wind

22 engineering research;

23 (3) promote the application of existing methods

24 for, and research results on, reducing wind damage to

25 buildings that are usually incompletely- or non-engi-
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1 neered, such as single family dwellings, mobile homes,

2 light industrial buildings, and small commercial

3 structures;

4 (4) transfer technology developed in wind engi5 neering research to the private sector so that it may

6 be applied in building codes, design practice, and

7 construction;

8 (5) conduct, in conjunction with the National

9 Oceanic and Atmospheric Administration, post-disas10 ter research following hurricanes, tornadoes, and other

11 severe storms to evaluate the vulnerability of different

12 types of buildings to extreme winds;

13 (6) serve as a point of contact for dissemination

14 of research information on wind engineering and

15 work with the private sector to develop education and

16 training programs on construction techniques, devel17 oped from research results, for reducing wind damage;

18 (7) work with the National Oceanic and Atmos19 pheric Administration, the Federal Aviation Admin20 istration, and other agencies as is appropriate, on

21 meteorology programs to collect and disseminate more

22 data on extreme wind events; and

23 (8) work with the National Science Foundation

24 to support and expand basic research on wind engi25 neering.
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1 SEC. 409. ENVIRONMENTALLY SENSITIVE CONSTRUCTION

2 TECHNOLOGIES.

3 (a) SHORT TITLE.—This section may be cited as the

4 ‘‘Environmentally Sensitive Construction Act of 1994’’.

5 (b) FINDINGS AND PURPOSES.—Congress finds the fol6 lowing:

7 (1) As the world economy develops, environ8 mental concerns are becoming increasingly critical.

9 (2) Developing the world economy through the

10 use of environmentally sound technologies will pay

11 dividends for years to come.

12 (3) The United States should be a leader in de13 veloping environmentally sound technologies.

14 (4) As shelter is a basic human need, the devel15 opment of environmentally sound construction tech16 niques should be a priority area.

17 (5) Establishment of a Federal Environmentally

18 Sensitive Construction Program within the Institute

19 would result in new technologies for environmentally

20 sensitive construction, broader application of such

21 technologies in construction, and an improved world

22 economy and environment.

23 (c) ESTABLISHMENT.—Within the Institute, there shall

24 be established a Federal Environmentally Sensitive Con25 struction Program which shall—
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1 (1) conduct research and development, in co2 operation with the private sector and academia, on

3 construction materials and techniques which result in

4 structures which pose low environmental and health

5 risks for their occupants and minimize waste genera6 tion and other environmental problems;

7 (2) as appropriate and permitted by appropria8 tions, support academic research projects in regions

9 around the Nation to develop and demonstrate envi10 ronmentally sensitive construction; and

11 (3) disseminate information on environmentally

12 sensitive construction technology.

13 SEC. 410. AMERICAN WORKFORCE QUALITY.

14 (a) WORKFORCE ACTIVITIES.—In addition to existing

15 responsibilities and authorities prescribed by law, the Sec16 retary, through the Director and after consultation with the

17 Secretary of Labor, shall ensure that Regional Centers for

18 the Transfer of Manufacturing Technology and Manufac19 turing Outreach Centers utilize, when appropriate, their ex20 pertise and capability to assist managers and workers of

21 manufacturers in the United States in effectively utilizing

22 and operating advanced manufacturing technologies and

23 modern technologies—

24 (1) by making available assessments of the needs

25 of manufacturers in the United States for worker
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1 training in the effective utilization and operation of

2 specific technologies the manufacturers have adopted

3 or are planning to adopt;

4 (2) by making available to manufacturers in the

5 United States information on commercially and pub6 licly provided worker training services, including

7 those provided by United States sources of tech8 nologies, in the effective utilization and operation of

9 specific technologies the manufacturers have adopted

10 or are planning to adopt; and

11 (3) by providing information to client firms and

12 their workers to enable them effectively to utilize and

13 operate specific technologies that the firms have

14 adopted or plan to adopt.

15 (b) WORKFORCE ANALYSIS AND INFORMATION DIS16 SEMINATION.—In addition to existing responsibilities and

17 authorities prescribed by law, the Secretary, through the Di18 rector and in consultation with the Secretary of Labor and

19 other appropriate Federal officials and with leaders of in20 dustry and labor, shall assist managers and other workers

21 of manufacturers in the United States in effectively utiliz22 ing and operating advanced manufacturing technologies

23 and modern technologies—

24 (1) by establishing and managing a clearing25 house for information, to be available through an ap-
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1 propriate entity to the Regional Centers for the

2 Transfer of Manufacturing Technology, to the Manu3 facturing Outreach Centers when they are established,

4 to other technology training entities, or directly to

5 manufacturers, on the best available training mate6 rial and services for the effective utilization and oper7 ation of specific advanced manufacturing technologies

8 and modern technologies;

9 (2) by encouraging United States providers of

10 advanced manufacturing technologies and modern

11 technologies for manufacturers to develop training

12 material specifically designed for the managers and

13 other workers responsible for utilizing and operating

14 such technologies; and

15 (3) by establishing as an important criterion in

16 the assessment of advanced manufacturing tech17 nologies and modern technologies the availability of

18 training material specifically designed for the man19 agers and other workers responsible for utilizing and

20 operating such technologies.

21 SEC. 411. SEVERABILITY.

22 If any provision of this Act or the amendments made

23 by this Act, or the application thereof to any person or cir24 cumstance, is held invalid, the remainder of this Act and

25 the amendments made by this Act, and the application
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1 thereof to other persons or circumstances, shall not be af2 fected thereby.

3 SEC. 412. USE OF DOMESTIC PRODUCTS.

4 (a) PROHIBITION AGAINST FRAUDULENT USE OF

5 ‘‘MADE IN AMERICA’’ LABELS.—(1) A person shall not in6 tentionally affix a label bearing the inscription of ‘‘Made

7 in America’’, or any inscription with that meaning, to any

8 product sold in or shipped to the United States, if that

9 product is not a domestic product.

10 (2) A person who violates paragraph (1) shall not be

11 eligible for any contract for a procurement carried out with

12 amounts authorized under this Act, or under any amend13 ment made by this Act, including any subcontract under

14 such a contract pursuant to the debarment, suspension, and

15 ineligibility procedures in subpart 9.4 of chapter 1 of title

16 48, Code of Federal Regulations, or any successor proce17 dures thereto.

18 (b) COMPLIANCE WITH BUY AMERICAN ACT.—(1) Ex19 cept as provided in paragraph (2), the head of each agency

20 which conducts procurements shall ensure that such pro21 curements are conducted in compliance with sections 2

22 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a

23 through 10c, popularly known as the ‘‘Buy American Act’’).

24 (2) This subsection shall apply only to procurements

25 made for which—
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1 (A) amounts are authorized by this Act, or by

2 any amendment made by this Act, to be made avail3 able; and

4 (B) solicitations for bids are issued after the date

5 of enactment of this Act.

6 (3) The Secretary, before January 1, 1995, shall report

7 to the Congress on procurements covered under this sub8 section of products that are not domestic products.

9 (c) PURCHASE OF AMERICAN MADE EQUIPMENT AND

10 PRODUCTS.—(1) It is the sense of Congress that any recipi11 ent of a grant under this Act, or under any amendment

12 made by this Act, should, when practical, purchase only

13 American made equipment and products when expending

14 grant monies.

15 (2) In allocating grants under this Act, or under any

16 amendment made by this Act, the Secretary shall provide

17 to each recipient a notice describing the statement made

18 in paragraph (1) by the Congress.

19 (d) DEFINITION.—For the purposes of this section, the

20 term ‘‘domestic product’’ means a product—

21 (1) that is manufactured or produced in the

22 United States; and

23 (2) at least 50 percent of the cost of the articles,

24 materials, or supplies of which are mined, produced,

25 or manufactured in the United States.
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1 SEC. 413. PERSONNEL.

2 Notwithstanding any other provision of law, the per3 sonnel management demonstration project, established

4 under section 10 of the National Bureau of Standards Au5 thorization Act for Fiscal Year 1987 (15 U.S.C. 275 note),

6 is extended until December 31, 1998.

7 TITLE V—AUTHORIZATIONS OF

8 APPROPRIATIONS

9 SEC. 501. TECHNOLOGY ADMINISTRATION.

10 (a) AUTHORIZATION OF APPROPRIATIONS.—There are

11 authorized to be appropriated to the Secretary, to carry out

12 the activities of the Under Secretary and the Assistant Sec13 retary of Commerce for Technology Policy, in addition to

14 any other amounts authorized for such purposes, for the Of15 fice of the Under Secretary—

16 (1) $6,000,000 for fiscal year 1994;

17 (2) $11,300,000 for fiscal year 1995, of which

18 $2,000,000 are authorized for program evaluations

19 under section 101(g) of the Stevenson-Wydler Tech20 nology Innovation Act of 1980, as added by section

21 405 of this Act; and

22 (3) $14,000,000 for fiscal year 1996.

23 (b) NATIONAL TECHNICAL INFORMATION SERVICE FA24 CILITIES STUDY.—As part of its modernization effort and

25 before signing any lease for a new facility, the National

26 Technical Information Service, in consultation with the
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1 General Services Administration, shall study and report to

2 Congress on the feasibility of accomplishing all or part of

3 its modernization by signing a long-term lease with an or4 ganization that agrees to supply a facility and supply and

5 periodically upgrade modern equipment which permits the

6 National Technical Information Service to receive, store,

7 and manipulate in electronic form, and print, electroni8 cally-created documents and reports and to carry out the

9 other functions assigned to the National Technical Informa10 tion Service.

11 SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECH12 NOLOGY.

13 (a) INTRAMURAL SCIENTIFIC AND TECHNICAL RE14 SEARCH AND SERVICES.—(1) There are authorized to be ap15 propriated to the Secretary, to carry out the intramural

16 scientific and technical research and services activities of

17 the Institute, $240,988,000 for fiscal year 1994,

18 $320,000,000 for fiscal year 1995, and $350,000,000 for fis19 cal year 1996.

20 (2) Of the amounts authorized under paragraph (1)—

21 (A) $1,000,000 for each of the fiscal years 1994,

22 1995, and 1996 are authorized only for the evaluation

23 of nonenergy-related inventions;

24 (B) $8,054,000 for fiscal year 1994 and

25 $8,113,000 for each of the fiscal years 1995 and 1996
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1 are authorized only for the technical competence fund;

2 and

3 (C) $5,000,000 for each of the fiscal years 1994,

4 1995, and 1996 are authorized only for the standards

5 pilot project established under section 104(e) of the

6 American Technology Preeminence Act of 1991 (Pub7 lic Law 102–245; 106 Stat. 10).

8 (b) FACILITIES.—In addition to the amounts author9 ized under subsection (a), there are authorized to be appro10 priated to the Secretary $62,000,000 for fiscal year 1994,

11 $110,392,000 for fiscal year 1995, and $112,000,000 for fis12 cal year 1996, for the renovation and upgrading of the In13 stitute’s facilities. The Institute may enter into a contract

14 for the design work for such purposes only if Federal Gov15 ernment payments under the contract are limited to

16 amounts provided in advance in appropriations Acts.

17 (c) EXTRAMURAL INDUSTRIAL TECHNOLOGY SERV18 ICES.—(1) In addition to the amounts authorized under

19 subsections (a) and (b), there are authorized to be appro20 priated to the Secretary, to carry out the extramural indus21 trial technology services activities of the Institute—

22 (A) for the Manufacturing Extension Partner23 ship, $40,000,000 for fiscal year 1994, $70,000,000

24 for fiscal year 1995, and $100,000,000 for fiscal year

25 1996;
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1 (B) for the Advanced Technology Program,

2 $200,000,000 for fiscal year 1994, $475,000,000 for

3 fiscal year 1995, and $575,000,000 for fiscal year

4 1996; and

5 (C) for quality programs at the Institute,

6 $2,800,000 for fiscal year 1994, $10,000,000 for fiscal

7 year 1995, and $10,000,000 for fiscal year 1996.

8 (2) The Secretary shall ensure that audits are per9 formed by outside auditors on the programs for which funds

10 are appropriated pursuant to this subsection. The summary

11 results of such audits shall be submitted to Congress by the

12 end of each of the fiscal years 1994 and 1995, and not more

13 than $2,000,000, or 2 percent of the aggregate amount made

14 available under this subsection, whichever is greater, shall

15 be used in each such fiscal year for performing the audits.

16 (d) TRANSFERS.—(1) Funds may be transferred

17 among the line items listed in subsection (a) and among

18 the line items listed in subsection (c) so long as—

19 (A) the net funds transferred to or from any line

20 item do not exceed 10 percent of the amount author21 ized for that line item in such subsection;

22 (B) the aggregate amount authorized under sub23 section (a) is not changed; and

24 (C) the Committee on Commerce, Science, and

25 Transportation of the Senate and the Committee on
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1 Science, Space, and Technology of the House of Rep2 resentatives are notified in advance of any such

3 transfer.

4 (2) The Secretary may propose transfers to or from

5 any line item listed in subsection (a) exceeding 10 percent

6 of the amount authorized from such line item, but such pro7 posed transfer may not be made unless—

8 (A) a full and complete explanation of any such

9 proposed transfer and the reason therefor are trans10 mitted in writing to the Speaker of the House of Rep11 resentatives, the President of the Senate, and the ap12 propriate authorizing committees of the House of

13 Representatives and the Senate; and

14 (B) 30 days have passed following the trans15 mission of such written explanation.

16 (e) WIND ENGINEERING.—(1) There are authorized to

17 be appropriated to the Institute for the purposes of section

18 408 of this Act, $1,000,000 for fiscal year 1994 and

19 $3,000,000 for each of the fiscal years 1995 and 1996.

20 (2) Of the amounts appropriated under paragraph (1),

21 no less than 50 percent shall be used for cooperative agree22 ments with the National Oceanic and Atmospheric Admin23 istration, the National Science Foundation, and the Federal

24 Aviation Administration, or other agencies, for wind engi25 neering research, development of improved practices for
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1 structures, and the collection and dissemination of meteoro2 logical data needed for wind engineering.

3 (f) ENVIRONMENTALLY SENSITIVE CONSTRUCTION

4 PROGRAM.—There are authorized to be appropriated to the

5 Institute for the purposes of section 409, $1,000,000 for fis6 cal year 1994 and $3,000,000 for fiscal year 1995.

7 SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY

8 ADMINISTRATION.

9 In addition to the amounts authorized under sections

10 501 and 502, there are authorized to be appropriated to

11 the Secretary to carry out additional duties of the Under

12 Secretary—

13 (1) for the establishment and management of a

14 technology training clearinghouse, $2,000,000 for each

15 of the fiscal years 1994 and 1995 and $3,000,000 for

16 fiscal year 1996;

17 (2) for the support of policy experiments relating

18 to intelligent manufacturing systems, $2,000,000 for

19 fiscal year 1995 and $4,000,000 for fiscal year 1996;

20 (3) for carrying out responsibilities for tech21 nology monitoring and competitiveness assessment,

22 $10,000,000 for each of the fiscal years 1994 and

23 1995 and $12,000,000 for fiscal year 1996;
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1 (4) for the National Technical Information Serv2 ice revolving fund, $20,000,000 for each of the fiscal

3 years 1995 and 1996; and

4 (4) for the purpose of carrying out the technology

5 financing pilot program under section 306,

6 $2,000,000 for fiscal year 1994 to prepare the operat7 ing plan and promulgate regulations required under

8 that section and $50,000,000 for each of the fiscal

9 years 1995 and 1996 to carry out the provisions of

10 that section.

11 SEC. 504. NATIONAL SCIENCE FOUNDATION.

12 In addition to such other sums as may be authorized

13 by other provisions of law to be appropriated to the Director

14 of the National Science Foundation, there are authorized

15 to be appropriated to that Director, to carry out the provi16 sions of section 221, $50,000,000 for fiscal year 1994 and

17 $75,000,000 for each of the fiscal years 1995 and 1996.

18 SEC. 505. AVAILABILITY OF APPROPRIATIONS.

19 Appropriations made under the authority provided in

20 this title shall remain available for obligation, for expendi21 ture, or for obligation and expenditure for periods specified

22 in the Acts making such appropriations.
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1 TITLE VI—INFORMATION

2 TECHNOLOGY APPLICATIONS

3 SEC. 601. SHORT TITLE.

4 This title may be cited as the ‘‘Information Technology

5 Applications Act of 1994’’.

6 SEC. 602. FINDINGS AND PURPOSE.

7 (a) FINDINGS.—Congress finds and declares the follow8 ing:

9 (1) High-performance computing and high-speed

10 networks have proven to be powerful tools for improv11 ing America’s national security, industrial competi12 tiveness, and research capabilities.

13 (2) Federal programs, such as the National

14 High-Performance Computing Program established by

15 Congress in 1991, have played a key role in main16 taining United States leadership in high-performance

17 computing, especially in the defense and research sec18 tors.

19 (3) High-performance computing and high-speed

20 networking have the potential to revolutionize many

21 fields, including education, libraries, health care, and

22 manufacturing, if adequate resources are invested in

23 developing the technology needed to do so.

24 (4) The Federal Government should ensure that

25 the technology developed under research and develop-
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1 ment programs such as the National High-Perform2 ance Computing Program can be widely applied for

3 the benefit of all Americans, including Americans

4 with disabilities.

5 (5) The Federal Government, in cooperation with

6 computer users, private industry, and others, should

7 support research and development projects which will

8 provide large economic and social benefits. These

9 projects, designed to address major National Chal10 lenges, should include the development of computing

11 tools for teaching, digital libraries of electronic infor12 mation, computer systems to improve the delivery of

13 health care, and computer and networking technology

14 to promote United States competitiveness. These ap15 plications should be designed and operated in ways

16 which protect privacy and intellectual property

17 rights.

18 (b) PURPOSE.—It is the purpose of this title to expand

19 the scope of the National High-Performance Computing

20 Program to identify and promote the development of appli21 cations of high-performance computing and high-speed

22 networking which will provide large economic and social

23 benefits to the Nation.
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1 SEC. 603. INFORMATION TECHNOLOGY APPLICATIONS.

2 (a) FINDINGS, PURPOSE, AND DEFINITIONS OF HIGH3 PERFORMANCE COMPUTING ACT.—The High-Performance

4 Computing Act of 1991 (15 U.S.C. 5501 et seq.) is amend5 ed—

6 (1) in section 2, by amending paragraph (4) to

7 read as follows:

8 ‘‘(4) High-capacity and high-speed computer networks

9 would provide researchers and educators with access to com10 puter and information resources and act as test beds for

11 further research and development.’’;

12 (2) in section 3—

13 (A) by amending paragraph (1)(A) to read

14 as follows:

15 ‘‘(A) accelerate the creation of a universally ac16 cessible communications network for the Nation;’’;

17 (B) in paragraph (1)(C), by striking

18 ‘‘available for use through the Network’’;

19 (C) in paragraph (1)(G), by inserting ‘‘and

20 National Challenges’’ after ‘‘Grand Challenges’’;

21 and

22 (D) by striking ‘‘and’’ at the end of para23 graph (1)(I); by striking the period at the end of

24 paragraph (2) and inserting in lieu thereof ‘‘;

25 and’’; and by adding after paragraph (2) the fol26 lowing new paragraph:
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1 ‘‘(3) promoting the widest possible application of high2 performance computing and high-speed networking by—

3 ‘‘(A) identifying and addressing specific Na4 tional Challenges, and generally expanding Federal

5 support for research and development of high-perform6 ance computing and high-speed networking, in order

7 to—

8 ‘‘(i) improve education at all levels, from

9 preschool to adult education, including the devel10 opment of new educational technologies;

11 ‘‘(ii) build digital libraries of electronic in12 formation accessible over computer networks;

13 ‘‘(iii) improve the provision of health care,

14 including furnishing health care providers and

15 their patients with better, more accurate, and

16 more timely information; and

17 ‘‘(iv) increase the productivity of the Na18 tion’s industry, especially in the manufacturing

19 sector; and

20 ‘‘(B) improving coordination of Federal efforts to

21 deploy these technologies in cooperation with the pri22 vate sector as part of an advanced national informa23 tion infrastructure.’’;

24 (3) in section 4, by striking paragraph (4); by

25 redesignating paragraph (5) as paragraph (7); and
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1 by inserting after paragraph (3) the following new

2 paragraphs:

3 ‘‘(4) ‘information infrastructure’ means a network of

4 communications systems and computer systems designed to

5 exchange information among all citizens and residents of

6 the United States;

7 ‘‘(5) ‘National Challenge’ means a technical or oper8 ational difficulty or problem which, if successfully solved,

9 will result in an application of high-performance comput10 ing or high-speed networking that will provide large eco11 nomic and social benefits to a broad segment of the Nation’s

12 populace;

13 ‘‘(6) ‘Network Program’ means the National Research

14 and Education Network Program established under section

15 102; and’’.

16 (b) NATIONAL HIGH-PERFORMANCE COMPUTING PRO17 GRAM.—Section 101 of the High-Performance Computing

18 Act of 1991 is amended—

19 (1) in subsection (a)(2)—

20 (A) by amending subparagraphs (A) and

21 (B) to read as follows:

22 ‘‘(A) foster and encourage competition and

23 private-sector investment in networking within

24 the telecommunications industry;

25 ‘‘(B) encourage—
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1 ‘‘(i) a diversity of public and private

2 sources for information products and serv3 ices based on government information; and

4 ‘‘(ii) the dissemination of government

5 information to the public on a timely, equi6 table, and affordable basis and in a manner

7 that will promote the usefulness of the infor8 mation to the public;’’; and

9 (B) by striking ‘‘and’’ at the end of sub10 paragraph (H); by striking the period at the end

11 of subparagraph (I) and inserting in lieu thereof

12 a semicolon; and by inserting after subpara13 graph (I) the following new subparagraphs:

14 ‘‘(J) provide for the development and, as

15 appropriate, implementation of applications of

16 high-performance computing and high-speed

17 networking, through projects which address Na18 tional Challenges in the fields of education, li19 brary science, health care, manufacturing, provi20 sion of government information, and other ap21 propriate fields;

22 ‘‘(K) identify each Program agency’s re23 sponsibility for addressing National Challenges

24 in high-performance computing and high-speed

25 networking; and
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1 ‘‘(L) provide for the development, to the ex2 tent technologically feasible, of technology to pro3 tect privacy, security, and intellectual property

4 rights (including copyrights).’’;

5 (2) in subsection (a)(4)(C), by inserting ‘‘devel6 opment of applications technology,’’ after ‘‘develop7 ment,’’; and by inserting ‘‘Program established in sec8 tion 102’’ after ‘‘Network’’; and

9 (3) in subsection (a)(4), by striking ‘‘and’’ at the

10 end of subparagraph (D); by striking the period at

11 the end of subparagraph (E) and inserting in lieu

12 thereof a semicolon; and by adding at the end the fol13 lowing new subparagraphs:

14 ‘‘(F) include a summary of the achieve15 ments of Federal efforts during the preceding fis16 cal year to develop technologies needed for an ad17 vanced information infrastructure;

18 ‘‘(G) identify steps agencies are taking to

19 develop technology to protect privacy, security,

20 and intellectual property rights (including copy21 rights) for computer networks; and

22 ‘‘(H) provide any recommendations regard23 ing additional action or legislation which may

24 be required to assist in achieving the purposes of

25 this title.’’; and
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1 (4) by inserting after subsection (c) the following

2 new subsection:

3 ‘‘(d) COPYRIGHT LAW.—Nothing in this Act shall be

4 construed to modify or otherwise change any provision of

5 title 17, United States Code.’’.

6 SEC. 604. APPLICATIONS FOR EDUCATION AND LIBRARIES.

7 (a) NATIONAL SCIENCE FOUNDATION ACTIVITIES.—

8 Section 201 of the High-Performance Computing Act of

9 1991 (15 U.S.C. 5521) is amended—

10 (1) in subsection (a), by striking ‘‘and’’ at the

11 end of paragraph (3); by striking the period at the

12 end of paragraph (4) and inserting in lieu thereof a

13 semicolon; and by adding at the end the following

14 new paragraphs:

15 ‘‘(5) the National Science Foundation and the Depart16 ment of Education, in cooperation with other appropriate

17 agencies, shall provide for the development of advanced com18 puting and networking technology for use in education at

19 all levels; and

20 ‘‘(6) the National Science Foundation, the Department

21 of Education, and other appropriate agencies shall provide

22 for the development and use of technologies needed for digi23 tal libraries of computerized data and information and, as

24 appropriate, may work with private and nonprofit institu25 tions to develop prototype digital libraries to serve as test
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1 beds for advanced computing systems, software, standards,

2 and methods.’’; and

3 (2) in subsection (b), by striking ‘‘$305,000,000’’

4 and inserting in lieu thereof ‘‘$339,000,000’’; and by

5 striking ‘‘$354,000,000’’ and inserting in lieu thereof

6 ‘‘$404,000,000’’.

7 (b) NATIONAL AERONAUTICS AND SPACE ADMINISTRA8 TION ACTIVITIES.—(1) Section 202(a) of the High-Perform9 ance Computing Act of 1991 (15 U.S.C. 5522(a)) is amend10 ed to read as follows:

11 ‘‘(a) GENERAL RESPONSIBILITIES.—As part of the

12 Program described in title I, the National Aeronautics and

13 Space Administration shall—

14 ‘‘(1) conduct basic and applied research in high15 performance computing, particularly in the field of

16 computational science, with emphasis on aerospace

17 sciences, earth and space sciences, and remote explo18 ration and experimentation; and

19 ‘‘(2) provide for the development of technologies

20 needed for digital libraries and electronic informa21 tion.’’.

22 (2) Section 202(b) of the High-Performance Comput23 ing Act of 1991 (15 U.S.C. 5522(b)) is amended by striking

24 ‘‘$134,000,000’’ and inserting in lieu thereof
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1 ‘‘$154,000,000’’; and by striking ‘‘$151,000,000’’ and in2 serting in lieu thereof ‘‘$181,000,000’’.

3 (c) ROLE OF DEPARTMENT OF EDUCATION.—Section

4 206 of the High-Performance Computing Act of 1991 (15

5 U.S.C. 5526) is amended to read as follows:

6 ‘‘SEC. 206. ROLE OF THE DEPARTMENT OF EDUCATION.

7 ‘‘(a) GENERAL RESPONSIBILITIES.—As part of the

8 Program described in title I—

9 ‘‘(1) the Secretary of Education is authorized to

10 conduct basic and applied research in computational

11 research with the emphasis on the coordination of ac12 tivities with libraries, school facilities, and edu13 cational research groups with respect to the advance14 ment and dissemination of computer science and the

15 development, evaluation, and application of software

16 capabilities; and

17 ‘‘(2) the Department of Education, in coopera18 tion with the National Science Foundation and other

19 agencies as appropriate, shall provide for the develop20 ment of advanced computing and networking tech21 nology at all educational levels; the development and

22 use of technologies needed for digital libraries of com23 puterized data and information; and the development

24 and implementation of training programs for teach-
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1 ers, students, and librarians in the use of local and

2 national computer networks.

3 ‘‘(b) AUTHORIZATIONS OF APPROPRIATIONS.—From

4 sums otherwise authorized to be appropriated to the Depart5 ment of Education, there are authorized to be appropriated

6 for the purposes of carrying out responsibilities under sub7 section (a) of this section, $11,900,000 for fiscal year 1994;

8 $22,100,000 for fiscal year 1995; and $2,300,000 for fiscal

9 year 1996.’’.

10 SEC. 605. APPLICATIONS FOR MANUFACTURING AND IN11 FORMATION.

12 Section 204 of the High-Performance Computing Act

13 of 1991 (15 U.S.C. 5524) is amended—

14 (1) in subsection (a)(1), by striking ‘‘and’’ at the

15 end of subparagraph (B), and by inserting after sub16 paragraph (C) the following new subparagraph:

17 ‘‘(D) develop, refine, test, and transfer, in

18 coordination with other agencies when appro19 priate, advanced computer-integrated, electroni20 cally-networked manufacturing technologies and

21 associated applications; and’’;

22 (2) in subsection (a), by striking the period at

23 the end of paragraph (2) and inserting in lieu thereof

24 ‘‘; and’’; and by adding at the end the following new

25 paragraph:
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1 ‘‘(3) the Secretary of Commerce and, as appropriate,

2 other Federal officials shall, in consultation with the Super3 intendent of Documents, identify and support projects to

4 develop and apply high-performance computing and high5 speed networking technologies to provide improved public

6 access to information generated by Federal, State, and local

7 governments, including environmental monitoring informa8 tion.’’; and

9 (3) in subsection (d)—

10 (A) in paragraph (1), by inserting ‘‘(other

11 than Advanced Manufacturing Program activi12 ties)’’ after ‘‘Program’’ and by striking ‘‘and’’ at

13 the end of the paragraph;

14 (B) by striking the period at the end of

15 paragraph (2) and inserting in lieu thereof ‘‘;

16 and’’; and

17 (C) by adding at the end the following new

18 paragraph:

19 ‘‘(3) to the Secretary of Commerce to carry out Pro20 gram activities under subsection (a)(3), $30,000,000 for fis21 cal year 1994 and $50,000,000 for fiscal year 1995.’’.

22 SEC. 606. APPLICATIONS IN ENERGY AND OTHER AREAS.

23 Section 203 of the High-Performance Computing Act

24 of 1991 (15 U.S.C. 5523) is amended by adding at the end

25 the following new subsection:
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1 ‘‘(f) APPLICATIONS.—(1) The Secretary of Energy

2 shall, consistent with the Program, develop, test, and apply

3 high-performance computing and high-speed networking

4 technologies in areas within the Department’s missions, in5 cluding—

6 ‘‘(A) energy demand management and control,

7 including vehicle efficiency and utilization, energy ef8 ficiency in commercial and residential buildings, and

9 industry energy use and practices;

10 ‘‘(B) environmental monitoring, modeling, and

11 remediation;

12 ‘‘(C) manufacturing;

13 ‘‘(D) materials;

14 ‘‘(E) the generation of electricity and the produc15 tion and consumption of oil, natural gas, and coal;

16 and

17 ‘‘(F) other areas in which the Department’s com18 puting expertise may assist industry and others, in19 cluding applications in health care, education and

20 training, financial services, and law enforcement.

21 ‘‘(2) The Secretary of Energy shall provide for cooper22 ative projects involving the Department of Energy and one

23 or more Department of Energy laboratories and appro24 priate non-Federal entities in carrying out this subsection.
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1 ‘‘(3) In carrying out projects under paragraph (2), the

2 Secretary of Energy shall, where appropriate, seek to ad3 dress the technical and other considerations critical to fur4 ther development of the technologies and applications useful

5 for a national information infrastructure.

6 ‘‘(4) There is authorized to be appropriated to the Sec7 retary of Energy for purposes of this subsection,

8 $50,000,000 for fiscal year 1994, $100,000,000 for fiscal

9 year 1995, and $150,000,000 for fiscal year 1996.’’.

10 SEC 607. APPLICATIONS FOR HEALTH CARE; ACCESS TO

11 NETWORKS.

12 The High-Performance Computing Act of 1991 (15

13 U.S.C. 5501 et seq.) is amended—

14 (1) by redesignating sections 207 and 208 as sec15 tions 209 and 210, respectively; and

16 (2) by adding after section 206 the following new

17 sections:

18 ‘‘SEC. 207. ROLE OF THE DEPARTMENT OF HEALTH AND

19 HUMAN SERVICES.

20 ‘‘(a) GENERAL RESPONSIBILITIES.—As part of the

21 Program described in title I, the Secretary of Health and

22 Human Services shall, through the Public Health Service,

23 the National Institutes of Health, the National Library of

24 Medicine, and the Centers for Disease Control and Preven25 tion, in cooperation with the National Science Foundation
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1 and other appropriate agencies, develop and support the de2 velopment of interoperable technologies for applications of

3 high-performance computing and high-speed networking in

4 the health care sector. In developing these technologies, em5 phasis shall be placed on applications that can produce sig6 nificant savings in national health care costs. Such tech7 nologies shall, when feasible, build on existing Federal pro8 grams for developing information technology applications

9 in the health care sector.

10 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—From

11 sums otherwise authorized to be appropriated, there are au12 thorized to be appropriated to the Department of Health

13 and Human Services for the purposes of this section,

14 $9,000,000 for fiscal year 1993, $30,000,000 for fiscal year

15 1994, and $50,000,000 for fiscal year 1995.

16 ‘‘SEC. 208. ACCESS TO NETWORKS.

17 ‘‘(a) CONNECTIONS PROGRAM.—The National Science

18 Foundation, the Department of Education, Department of

19 Commerce, particularly the National Telecommunications

20 and Information Administration, and other appropriate

21 agencies shall—

22 ‘‘(1) foster the creation of computer networks, in23 cluding but not limited to high-performance computer

24 networks, in geographical areas which will connect

25 institutions of higher education, elementary and sec-
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1 ondary schools, libraries and depository libraries, and

2 Federal, State, and local governments to each other;

3 and

4 ‘‘(2) provide for connection of such networks to

5 other networks.

6 ‘‘(b) TRAINING.—The National Science Foundation,

7 the Department of Education, the Department of Com8 merce, particularly the National Telecommunications and

9 Information Administration, and other appropriate agen10 cies shall provide for programs to train teachers, students,

11 librarians, and Federal, State, and local government per12 sonnel in the use of local and national computer networks.

13 Training programs for librarians shall be designed to pro14 vide skills and training materials needed by librarians to

15 instruct the public in the use of hardware and software for

16 accessing and using local and national computer networks.

17 ‘‘(c) REPORT.—The Director shall, within 1 year after

18 the date of enactment of the Information Technology Appli19 cations Act of 1994, submit a report to Congress which shall

20 include—

21 ‘‘(1) findings of an examination of the extent to

22 which the education and library communities and

23 State and local governments have access to local and

24 national networks;
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1 ‘‘(2) a statement of the extent to which connec2 tions to local and national networks exist for the edu3 cation and library communities and State and local

4 governments;

5 ‘‘(3) an assessment of the factors limiting access

6 by schools, libraries, and State and local governments

7 to local and national networks and an estimate of the

8 cost of providing universal access for those institu9 tions to those networks; and

10 ‘‘(4) recommendations for collaborative programs

11 among Federal, State, and local governments and the

12 private sector to expand connectivity to local and na13 tional computer networks for educational institutions,

14 libraries, and Federal, State, and local governments.

15 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—To carry

16 out the purposes of this section, there are authorized to be

17 appropriated—

18 ‘‘(1) to the National Science Foundation,

19 $5,000,000 for fiscal year 1994 and $12,500,000 for

20 fiscal year 1995; and

21 ‘‘(2) to the Department of Education, $5,000,000

22 for fiscal year 1994 and $12,500,000 for fiscal year

23 1995.’’.
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1 SEC. 608. HIGH-PERFORMANCE COMPUTING AND APPLICA2 TIONS ADVISORY COMMITTEE.

3 Section 101(b) of the High-Performance Computing

4 Act of 1991 (15 U.S.C. 5511(b)) is amended to read as fol5 lows:

6 ‘‘(b) HIGH-PERFORMANCE COMPUTING AND APPLICA7 TIONS ADVISORY COMMITTEE.—The Director shall establish

8 an advisory committee on high-performance computing and

9 applications consisting of non-Federal members, including

10 representatives of the research, elementary and secondary

11 education, higher education, and library communities,

12 consumer and public interest groups, network providers,

13 and the computer, telecommunications, information and

14 publishing industries, and other groups who use networks,

15 who are specially qualified to provide the Director with ad16 vice and information on high-performance computing and

17 on applications of computing and networking. The Director

18 shall consider the recommendations of the advisory commit19 tee in reviewing and revising the Program. The advisory

20 committee shall provide the Director with an independent

21 assessment of—

22 ‘‘(1) progress in implementing the Program;

23 ‘‘(2) the need to revise the Program;

24 ‘‘(3) the balance between the components of the

25 activities undertaken pursuant to this Act;
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1 ‘‘(4) whether the research, development, and dem2 onstration projects undertaken pursuant to this Act

3 are helping to maintain United States leadership in

4 computing and networking technologies and in the

5 application of those technologies;

6 ‘‘(5) whether the applications and technologies

7 developed under the Program are successfully address8 ing the needs of targeted populations, including as9 sessment of the number of users served by those appli10 cations; and

11 ‘‘(6) other issues identified by the Director.’’.

12 SEC. 609. NATIONAL RESEARCH AND EDUCATION NETWORK

13 PROGRAM.

14 Section 102 of the High-Performance Computing Act

15 of 1991 (15 U.S.C. 5512) is amended to read as follows:

16 ‘‘SEC. 102. NATIONAL RESEARCH AND EDUCATION NET17 WORK PROGRAM.

18 ‘‘(a) ESTABLISHMENT.—As part of the Program de19 scribed in section 101, the National Science Foundation,

20 the Department of Defense, the Department of Energy, the

21 Department of Commerce, the National Aeronautics and

22 Space Administration, the Department of Education, and

23 other agencies participating in the Program shall, in con24 sultation with the Superintendent of Documents, support

25 the establishment of the National Research and Education
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1 Network Program. The Network Program shall consist of

2 the following components:

3 ‘‘(1) Research and development of software and

4 hardware for high-performance computing and high5 speed networks.

6 ‘‘(2) Support of experimental test bed networks

7 for—

8 ‘‘(A) developing and demonstrating ad9 vanced networking technologies resulting from

10 the activities described in paragraph (1); and

11 ‘‘(B) providing connections and associated

12 network services for purposes consistent with this

13 Act.

14 ‘‘(3) Provision of support for researchers, edu15 cators, students, libraries, and other appropriate in16 stitutions in order to ensure their access and use of

17 networks.

18 ‘‘(4) Federal networks for linking Federal agency

19 facilities and personnel to each other and to non-Fed20 eral networks.

21 ‘‘(b) PROGRAM REQUIREMENTS.—The Network Pro22 gram shall—

23 ‘‘(1) be closely coordinated with the computer

24 hardware, computer software, telecommunications,

25 and information industries, and network users in
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1 government, industry, and research and educational

2 institutions;

3 ‘‘(2) foster and encourage competition and pri4 vate sector investment in networking within the tele5 communications industry;

6 ‘‘(3) promote and encourage research and devel7 opment leading to the creation of data transmission

8 standards, enabling the establishment of privately de9 veloped high-speed commercial networks;

10 ‘‘(4) provide for the appropriate application of

11 Federal laws that provide network and information

12 resources security, including those that protect intel13 lectual property rights, control access to data bases,

14 and protect national security;

15 ‘‘(5) enable interoperability of Federal and non16 Federal computer networks, to the extent appropriate,

17 in a way that allows autonomy for each component

18 network;

19 ‘‘(6) promote the research and development of

20 high-capacity and high-speed computing networks, in21 cluding related applications; and

22 ‘‘(7) demonstrate, in cooperation with users and

23 others in the private sector, how advanced computers,

24 high-capacity and high-speed computing networks,
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1 and data bases can contribute to the national infor2 mation infrastructure.

3 ‘‘(c) NETWORK ACCESS PLAN.—The Federal agencies

4 participating in activities under this section shall develop

5 a plan with specific goals for implementing the require6 ments of subsection (a)(3), including provision for financial

7 assistance to educational institutions, public libraries, and

8 other appropriate entities. This plan shall be submitted to

9 the Congress not later than one year after the date of enact10 ment of the Information Technology Applications Act of

11 1994. Each year thereafter, the Director shall report to Con12 gress on progress in implementing subsection (a)(3).

13 ‘‘(d) DEPARTMENT OF DEFENSE RESPONSIBILITIES.—

14 As part of the Program, the Department of Defense, through

15 the Advanced Research Projects Agency, shall support re16 search and development of advanced fiber optics technology,

17 switches, and protocols.

18 ‘‘(e) INFORMATION SERVICES.—The Director shall as19 sist the President in coordinating the activities of appro20 priate agencies to promote the development of information

21 services that could be provided over computer networks con22 sistent with the purposes of this Act. These services may

23 include the provision of directories of the users and services

24 on computer networks, data bases of unclassified Federal

25 data, training of users of data bases and computer net-
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1 works, and technology to support computer-based collabora2 tion that facilitates research and education. In carrying out

3 this section, the Director shall consult with the Super4 intendent of Documents in order to facilitate compatibility

5 of information systems and eliminate unnecessary redun6 dancy.

7 ‘‘(f) USE OF GRANT FUNDS.—All Federal agencies and

8 departments are authorized to allow recipients of Federal

9 research grants to use grant funds to pay for computer

10 networking expenses.

11 ‘‘(g) USE OF PROGRAM FUNDS.—(1) Each agency in

12 the Program, when using Program funds for the procure13 ment of communications networking services for Program

14 activities, shall develop, provide access to, or use commu15 nications networks through the acquisition of commercially

16 available network services or through contracting for cus17 tomized services when such acquisition cannot satisfy agen18 cy requirements. Nothing in this section shall be construed

19 to modify or otherwise change the Federal Property and Ad20 ministrative Services Act of 1949.

21 ‘‘(2) In using Program funds to provide grants or as22 sistance to non-Federal entities for the support of commu23 nications networking services, the head of each agency in

24 the Program shall provide funding only to non-Federal en-
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1 tities which agree to develop, provide access to, or use com2 munications networks—

3 ‘‘(A) through the acquisition of commercially

4 available communications networking services; or

5 ‘‘(B) if no such services are satisfactorily avail6 able, through contracting for customized services, with

7 the determination of satisfactory availability includ8 ing consideration of geographic access to and afford9 ability of service, and timeliness and technical per10 formance standards in providing services.

11 In neither subparagraph (A) or (B) may the grantee use

12 Federal funds for purposes other than the purposes for

13 which they are awarded.

14 ‘‘(3) The provisions of this subsection shall apply only

15 to procurements, grants, or agreements for assistance en16 tered into by Program agencies for Program activities after

17 the date of enactment of the Information Technology Appli18 cations Act of 1994.’’.

19 SEC. 610. SUPPORT FOR COMPUTER EDUCATION PRO20 GRAMS.

21 (a) EDUCATION PROJECT.—The Administrator of the

22 National Aeronautics and Space Administration (hereafter

23 in this section referred to as the ‘Administrator’) shall es24 tablish a Computer Technologies for K–12 Education

25 Project (hereafter in this section referred to as the ‘Project’)
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1 to test and demonstrate educational applications of ad2 vanced computer technologies, including but not limited to

3 high-performance computing technologies, in public school

4 systems providing precollege education. The Project shall

5 award, on a competitive basis, grants to plan, deploy, man6 age, and operate advanced educational applications of com7 puter technologies in K–12 public school systems in the

8 United States in response to proposals requested by the Ad9 ministrator. The Administrator shall ensure that non-Fed10 eral funds committed to support such proposals shall

11 amount to not less than 30 percent of the Federal grant

12 from the Project.

13 (b) AUTHORIZATION OF APPROPRIATIONS.—There are

14 authorized to be appropriated to the National Aeronautics

15 and Space Administration $8,000,000 for each of the fiscal

16 years 1994 and 1995, to carry out the provisions of para17 graph (1). No funds shall be awarded under the Project

18 other than through the competitive process established by

19 the Administrator pursuant to this section.

20 SEC. 611. SUPPORT FOR STATE-BASED DIGITAL LIBRARIES.

21 (a) PROGRAM TO SUPPORT DIGITAL LIBRARIES.—The

22 National Science Foundation, in consultation with the De23 partment of Education, the Department of Commerce, the

24 Advanced Research Projects Agency, the Library of Con25 gress, the Superintendent of Documents, and other appro-
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1 priate agencies, is authorized to initiate a competitive,

2 merit-based program to support the efforts of States and,

3 as appropriate, libraries to develop electronic libraries. In

4 carrying out this section, the National Science Foundation

5 shall consult with the Superintendent of Documents in

6 order to facilitate compatibility of Federal information sys7 tems and eliminate unnecessary redundancy. These librar8 ies shall provide delivery of and access to a variety of

9 databases, computer programs, and interactive multimedia

10 presentations, including educational materials, research in11 formation, statistics and reports developed by Federal,

12 State, and local governments, and other information and

13 informational services which can be carried over computer

14 networks.

15 (b) AUTHORIZATION OF APPROPRIATIONS.—To carry

16 out the provisions of this section, there are authorized to

17 the Director of the National Science Foundation

18 $10,000,000 for fiscal year 1994, and $25,000,000 for fiscal

19 year 1995.

20 (c) COPYRIGHT LAW.—Nothing in this section shall be

21 construed to modify or otherwise change any provision of

22 title 17, United States Code.
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1 SEC. 612. SUPPORT FOR COMPUTING ACTIVITIES AT TRIBAL

2 COLLEGES.

3 The Director of the National Science Foundation shall

4 design and implement a pilot program to provide financial

5 assistance, through competitive selection processes, to States

6 in which are located two or more tribally-controlled commu7 nity colleges. The objective of the pilot program shall be to

8 institute interactive telecommunications systems among

9 such tribally controlled community colleges in such States,

10 so as to assist the tribal community in education, job train11 ing, and other appropriate activities.

12 SEC. 613. DEPARTMENT OF EDUCATION SUPPORT FOR COM13 PUTER EDUCATION PROGRAMS.

14 (a) EDUCATION PROJECT.—In addition to the general

15 responsibilities set forth in section 206 of the High-Perform16 ance Computing Act of 1991 (15 U.S.C. 5526), the Depart17 ment of Education, in cooperation as appropriate with

18 other Federal agencies, shall establish a project to test and

19 demonstrate educational applications of advanced computer

20 technologies, including but not limited to high-performance

21 computing and networking technologies, in school systems

22 providing precollege education. This project shall award, on

23 a competitive basis, grants to plan, deploy, manage, and

24 operate advanced educational applications of computer

25 technologies in response to proposals requested by the Sec26 retary of Education. The Secretary of Education shall en-
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1 sure that non-Federal funds committed to such proposals

2 shall amount to not less than 30 percent of the Federal

3 grant.

4 (b) AUTHORIZATION OF APPROPRIATIONS.—From

5 sums otherwise authorized to be appropriated to the Depart6 ment of Education, there are authorized to be appropriated

7 to carry out the provisions of this section, $8,000,000 for

8 each of the fiscal years 1994 and 1995. No funds shall be

9 awarded under the provisions of subsection (a) other than

10 through the competitive process established by the Secretary

11 of Education pursuant to this section.

12 TITLE VII—FASTENER QUALITY

13 ACT AMENDMENTS

14 SEC. 701. FASTENER QUALITY ACT AMENDMENTS.

15 (a) TECHNICAL AMENDMENTS.—(1) Section 3 of the

16 Fastener Quality Act (15 U.S.C. 5402) is amended—

17 (A) in paragraph (8), by striking ‘‘Standard’’

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

19 (B) in paragraph (14), by striking ‘‘which de20 fines or describes’’ and all that follows through ‘‘of

21 any fastener’’.

22 (2) Section 5(b)(1) of the Fastener Quality Act (15

23 U.S.C. 5404(b)(1)) is amended by striking ‘‘section 6; un24 less’’ and inserting in lieu thereof ‘‘section 6, unless’’.
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1 (3) Section 7(c)(2) of the Fastener Quality Act (15

2 U.S.C. 5406(c)(2)) is amended by inserting ‘‘to the same’’

3 before ‘‘extent’’.

4 (b) CLARIFYING AMENDMENTS.—(1) Section

5 5(a)(1)(B) of the Fastener Quality Act (15 U.S.C.

6 5404(a)(1)(B)) is amended by striking ‘‘subsections (b) and

7 (c)’’ and inserting in lieu thereof ‘‘subsections (b), (c), and

8 (d)’’.

9 (2) Section 5(a)(2)(A)(i) of the Fastener Quality Act

10 (15 U.S.C. 5404(a)(2)(A)(i)) is amended by striking ‘‘sub11 sections (b) and (c)’’ and inserting in lieu thereof ‘‘sub12 sections (b), (c), and (d)’’.

13 (3) Section 5(c)(4) of the Fastener Quality Act (15

14 U.S.C. 5404(c)(4)) is amended by inserting ‘‘except as pro15 vided in subsection (d),’’ before ‘‘state’’.

16 (4) Section 5 of the Fastener Quality Act (15 U.S.C.

17 5404) is amended by adding at the end the following new

18 subsection:

19 ‘‘(d) ALTERNATIVE PROCEDURE FOR CHEMICAL

20 CHARACTERISTICS.—Notwithstanding the requirements of

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

22 have demonstrated, for purposes of subsection (a)(1), that

23 the chemical characteristics of a lot conform to the stand24 ards and specifications to which the manufacturer rep-
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1 resents such lot has been manufactured if the following re2 quirements are met:

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

4 which such lot was fabricated has been inspected and

5 tested with respect to its chemical characteristics by

6 a laboratory accredited in accordance with the proce7 dures and conditions specified by the Secretary under

8 section 6.

9 ‘‘(2) Such laboratory has provided to the manu10 facturer, either directly or through the metal manu11 facturer, a written inspection and testing report,

12 which shall be in a form prescribed by the Secretary

13 by regulation, listing the chemical characteristics of

14 such coil or heat number.

15 ‘‘(3) The report described in paragraph (2) indi16 cates that the chemical characteristics of such coil or

17 heat number conform to those required by the stand18 ards and specifications to which the manufacturer

19 represents such lot has been manufactured.

20 ‘‘(4) The manufacturer demonstrates that such

21 lot has been fabricated from the coil or heat number

22 of metal to which the report described in paragraphs

23 (2) and (3) relates.

24 In prescribing the form of report required by subsection (c),

25 the Secretary shall provide for an alternative to the state-
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1 ment required by subsection (c)(4), insofar as such state2 ment pertains to chemical characteristics, for cases in which

3 a manufacturer elects to use the procedure permitted by this

4 subsection.’’.

5 (c) SALE OF FASTENERS SUBSEQUENT TO MANUFAC6 TURE.—Section 7 of the Fastener Quality Act (15 U.S.C.

7 5406) is amended—

8 (1) in subsection (e)(1)—

9 (A) by striking ‘‘or any person who pur10 chases any quantity of fasteners for resale at

11 wholesale’’ and inserting in lieu thereof ‘‘, im12 porter, or private label distributor’’; and

13 (B) by striking ‘‘or such person’’ and insert14 ing in lieu thereof ‘‘, importer, or private label

15 distributor’’;

16 (2) by adding at the end of subsection (e) the fol17 lowing new paragraph:

18 ‘‘(3) Notwithstanding paragraph (1), fasteners may be

19 sold to an end user in commingled lots if—

20 ‘‘(A) any packaging of such fastener includes a

21 conspicuous disclaimer message indicating that the

22 fasteners are manufactured and tested in compliance

23 with this Act but have been commingled with like

24 items from different lots; and
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1 ‘‘(B) the person selling such fasteners has a writ2 ten statement from the end user purchasing such fas3 teners granting permission to the seller to provide

4 commingled lots.

5 A written statement described in subparagraph (B) shall

6 be kept on file for at least 10 years for any later review

7 or audit.’’; and

8 (3) by amending subsection (f) to read as follows:

9 ‘‘(f) SUBSEQUENT PURCHASER.—It shall be unlawful

10 for any person to sell fasteners, of any quantity, to any

11 end user who requests lot traceability, unless the container

12 of fasteners sold is conspicuously marked with the number

13 of the lot from which such fasteners were taken.’’.

14 TITLE VIII—PRIVATE CARRIAGE

15 OF URGENT LETTERS

16 SEC. 801. PRIVATE CARRIAGE OF URGENT LETTERS.

17 It is the sense of the Congress that the United States

18 Postal Service, in the administration of chapter 6 of title

19 39, United States Code, shall suspend its audits by the Post20 al Inspection Service of private businesses or individuals

21 who use private express for the private carriage of any letter

22 which such business or individual determines is urgent,

23 until the Congress receives and considers a report by the

24 General Accounting Office regarding the potential financial
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1 impact on the Postal Service of permanently suspending en2 forcement of chapter 6, of title 39, United States Code.

3 TITLE IX—REGULATORY

4 FLEXIBILITY ANALYSIS

5 SEC. 901. DEFINITIONS.

6 Section 601 of title 5, United States Code is amend7 ed—

8 (1) in paragraph (5) by striking out ‘‘and’’ at

9 the end thereof;

10 (2) in paragraph (6) by striking out the period

11 and inserting in lieu thereof a semicolon and ‘‘and’’;

12 and

13 (3) by adding at the end thereof the following

14 new paragraph:

15 ‘‘(7) the term ‘impact’ means effects of a pro16 posed or final rule which an agency can anticipate at

17 the time of publication, and includes those effects

18 which are directly and indirectly imposed by the pro19 posed or final rule and are beneficial and negative.’’.

20 SAC. 902. INITIAL REGULATORY FLEXIBILITY ANALYSIS.

21 Section 603 of title 5, United States Code, is amend22 ed—

23 (1) in subsection (a)—
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1 (A) in the first sentence by inserting ‘‘as de2 fined under section 601(2)’’ after ‘‘any proposed

3 rule’’; and

4 (B) in the second sentence by striking out

5 ‘‘the impact’’ and inserting thereof ‘‘both the di6 rect and indirect impacts’’;

7 (2) in subsection (b)(3) by striking out ‘‘apply’’

8 and inserting in lieu thereof ‘‘directly apply and an

9 estimate of the number of small entities to which the

10 rule will indirectly apply’’; and

11 (3) in subsection (c) in the first sentence by in12 serting before the period ‘‘either directly or indirectly

13 effected’’.

14 SEC. 903. FINAL REGULATORY FLEXIBILITY ANALYSIS.

15 Section 604(a) of title 5, United States Code, is

16 amended in the first sentence by striking out ‘‘under section

17 553 of this title, after being required by that section or any

18 other law to publish a general notice of proposed rule19 making’’ and inserting in lieu thereof ‘‘as defined under

20 section 610(2)’’.

21 SEC. 904. JUDICIAL REVIEW.

22 Section 611(b) of title 5, United States Code, is re23 pealed.
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1 TITLE X—COUNTER2 INTELLIGENCE

3 SEC. 1001. SHORT TITLE.

4 This title may be cited as the ‘‘Counterintelligence Im5 provements Act of 1994’’.

6 SEC. 1002. AMENDMENT TO THE NATIONAL SECURITY ACT

7 OF 1947.

8 The National Security Act of 1947 (50 U.S.C. 401 et

9 seq.) is amended by inserting at the end thereof the follow10 ing new title:

11 ‘‘TITLE VIII—ACCESS TO TOP SECRET

12 INFORMATION

13 ‘‘ELIGIBILITY FOR ACCESS TO TOP SECRET INFORMATION

14 ‘‘SEC. 801. (a) The President and Vice President,

15 Members of the Congress, Justices of the Supreme Court and

16 judges of other courts of the United States established pursu17 ant to Article III of the Constitution, shall, by virtue of

18 their elected or appointed positions, be entitled to access to

19 Top Secret information needed for the performance of their

20 governmental functions without regard to the other provi21 sions of this title.

22 ‘‘(b) Among employees of the United States Govern23 ment, access to Top Secret information shall be limited to

24 employees;
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1 ‘‘(1) who have been granted access to such infor2 mation pursuant to this title;

3 ‘‘(2) who are citizens of the United States who

4 require routine access to such information for the per5 formance of official governmental functions; and

6 ‘‘(3) who have been determined to be trustworthy

7 based upon a background investigation and appro8 priate reinvestigations and have otherwise satisfied

9 the requirements of section 802, below.

10 ‘‘(c) Access to Top Secret information by persons other

11 than those identified in subsections (a) and (b) shall be per12 mitted only in accordance with the regulations issued by

13 the President pursuant to section 802 below.

14 IMPLEMENTING REGULATIONS

15 ‘‘Sec. 802. The President shall, within 180 days of en16 actment of this title, issue regulations to implement this

17 title which shall be binding upon all departments, agencies,

18 and offices of the Executive branch. These regulations shall,

19 at a minimum provide that—

20 (A) no employee of the United States Govern21 ment shall be given access to Top Secret information

22 owned, originated or possessed by United States, after

23 the effective date of this title, by any department,

24 agency, or entity of the United States Government

25 unless such person has been subject to an appropriate

26 background investigation and has—
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1 ‘‘(1) provided consent to the investigative

2 agency responsible for conducting the security

3 investigation of such person, during the initial

4 background investigation and for such times as

5 access to such information is maintained, and

6 for 5 years thereafter, permitting access to—

7 (a) financial records concerning the

8 subject pursuant to section 1104 of the

9 Right to Financial Privacy Act of 1978;

10 ‘‘(b) consumer reports concerning the

11 subject pursuant to section 1681b of the

12 Consumer Credit Protection Act; and

13 ‘‘(c) records maintained by commercial

14 entities within the United States pertaining

15 to any travel by the subject outside the

16 United States: Provided, That—

17 ‘‘(i) no information may be re18 quested by an authorized investigative

19 agency pursuant to this section for any

20 purpose other than making a security

21 determination;

22 ‘‘(ii) where the person concerned

23 no longer has access to Top Secret in24 formation, no information may be re25 quested by an authorized investigative
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1 agency pursuant to this section unless

2 such agency has reasonable grounds to

3 believe, based upon specific and

4 articulable facts available to it, that

5 such person may pose a threat to the

6 continued security of the information

7 to which he or she had previously had

8 access; and

9 ‘‘(iii) any information obtained

10 by an authorized investigative agency

11 pursuant to this section shall not be

12 disseminated to any other department,

13 agency, or entity for any purpose other

14 than for making a security determina15 tion, or for foreign counterintelligence

16 or law enforcement purposes;

17 ‘‘(2) agreed, during the period of his or her

18 access, to report to the department, agency, or

19 entity granting such access in accordance with

20 applicable regulations, any travel to foreign

21 countries which has not been authorized as part

22 of the subject’s official duties;

23 ‘‘(3) agreed to report to the Federal Bureau

24 of Investigation, or to appropriate investigative

25 authorities of the department, agency, or entity
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1 concerned, any unauthorized contacts with per2 sons known to be foreign nationals or persons

3 representing foreign nationals, where an effort to

4 acquire classified information is made by the

5 foreign national, or where such contacts appear

6 intended for this purpose. For purposes of this

7 subsection, the term ‘unauthorized contacts’ does

8 not include contacts made within the context of

9 an authorized diplomatic relationship. Failure

10 by the employee to comply with any of the re11 quirements of this subsection shall constitute

12 grounds for denial or termination of access to the

13 Top Secret information concerned.

14 ‘‘(B) all employees granted access to Top Secret

15 information pursuant to this subsection shall also be

16 subject to—

17 ‘‘(1) additional background investigations

18 by appropriate governmental authorities during

19 the period of access at no less frequent interval

20 than every 5 years, except that any failure to

21 satisfy this requirement that is not solely attrib22 utable to the subject of the investigation shall not

23 result in a loss or denial of access; and

24 ‘‘(2) investigation by appropriate govern25 mental authority at any time during the period
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1 of access to ascertain whether such persons con2 tinue to meet the requirements for access.

3 ‘‘(C) access to Top Secret information by cat4 egories of persons who do not meet the requirements

5 of subsections (A) and (B) of this section may be per6 mitted only where the President, or officials des7 ignated by the President for this purpose, determine

8 that such access is essential to protect or further the

9 national security interests of the United States.

10 ‘‘(D) a single office within the Executive branch

11 shall be designated to monitor the implementation

12 and operation of this title within the Executive

13 branch. This office shall submit an annual report to

14 the President and appropriate committees of the Con15 gress, describing the operation of this title and rec16 ommending needed improvements. A copy of the regu17 lations implementing this title shall be provided to

18 the Select Committee on Intelligence of the Senate and

19 the Permanent Select Committee on Intelligence of the

20 House of Representatives thirty days prior to their ef21 fective date.

22 ‘‘WAIVERS FOR INDIVIDUAL CASES

23 ‘‘SEC. 803. In extraordinary circumstances, when es24 sential to protect or further the national security interests

25 of the United States, the President (or officials designated

26 by the President for this purpose) may waive the provisions
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1 of this title, or the provisions of the regulations issued pur2 suant to section 802, above, in individual cases involving

3 persons who are citizens of the United States or are persons

4 admitted into the United States for permanent residence:

5 Provided, That all such waivers shall be made a matter of

6 record and reported to the office designated pursuant to sec7 tion 802(D), above, and shall be available for review by the

8 Select Committee on Intelligence of the Senate and the Per9 manent Select Committee of the House of Representatives.

10 ‘‘DEFINITIONS

11 ‘‘SEC. 804. For purposes of this title—

12 ‘‘(a) the term ‘national security’ refers to the na13 tional defense and foreign relations of the United

14 States;

15 ‘‘(b) the phrases ‘information classified in the in16 terest of national security’ or ‘classified information’

17 means any information originated by or on behalf of

18 the United States Government, the unauthorized dis19 closure of which would cause damage to the national

20 security, which has been marked and is controlled

21 pursuant to the Executive Order 12356 of April 2,

22 1982, or successor orders, or the Atomic Energy Act

23 of 1954;

24 ‘‘(c) the term ‘Top Secret information’ means in25 formation classified in the interests of national secu-
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1 rity, the unauthorized disclosure of which would cause

2 exceptionally grave damage to the national security;

3 ‘‘(d) the term ‘employee’ includes any person

4 who receives a salary or compensation of any kind

5 from the United States Government, is a contractor

6 of the United States Government, is an unpaid con7 sultant of the United States Government, or otherwise

8 acts for or on behalf of the United States Government,

9 but does not include the President or Vice President

10 of the United States, Members of the Congress of the

11 United States, Justices of the Supreme Court or

12 judges of other federal courts established pursuant to

13 Article III of the Constitution; and

14 ‘‘(e) the term ‘‘authorized investigative agency’’

15 means an agency authorized by law or regulation to

16 conduct investigations of persons who are proposed

17 for access to Top Secret information to ascertain

18 whether such persons satisfy the criteria for obtaining

19 and retaining access to such information.

20 ‘‘EFFECTIVE DATE

21 ‘‘SEC. 805. This title shall take effect 180 days after

22 the date of its enactment.’’.
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1 SEC. 1003. PROTECTION OF CRYPTOGRAPHIC INFORMA2 TION.

3 The National Security Act of 1947 (50 U.S.C. 401 et

4 seq.), as amended by section 1002, is further amended by

5 inserting at the end the following new title:

6 ‘‘TITLE IX—PROTECTION OF CRYPTOGRAPHIC

7 INFORMATION

8 ‘‘SEC. 901. (a) REQUIREMENTS FOR ACCESS TO CRYP9 TOGRAPHIC INFORMATION.—(1) Any employee of a depart10 ment or agency within the Executive branch who is granted

11 access to classified cryptographic information or routine,

12 recurring access to any space in which classified cryp13 tographic key is produced or processed, or is assigned re14 sponsibilities as a custodian of classified cryptographic key,

15 shall, as a condition of receiving such access, or being as16 signed such responsibilities, and at a minimum:

17 ‘‘(A) meet the requirements applicable to persons

18 having access to Top Secret information, as defined

19 in subsection 804(c) of this Act, (as added by section

20 1002 of the Counterintelligence Improvements Act of

21 1994); and

22 ‘‘(B) be subject to periodic polygraph examina23 tions conducted by appropriate governmental authori24 ties, limited in scope to questions of a counterintel25 ligence nature, during the period of access.
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1 ‘‘(2) Failure to submit to an examination required

2 under paragraph (1) shall be grounds for removal from ac3 cess to cryptographic information or spaces.

4 ‘‘(3) No person shall be removed from access to cryp5 tographic information or spaces based solely upon the inter6 pretation of the results produced by a polygraph instru7 ment, measuring physiological resources, unless, after fur8 ther investigation, the head of the department or agency

9 concerned determines the risk to the national security in

10 permitting such access to be so potentially grave that access

11 must nonetheless be denied.

12 ‘‘(b) DEFINITIONS.—For purposes of this section—

13 ‘‘(1) the term ‘classified cryptographic informa14 tion’ means any information classified by the United

15 States Government pursuant to law or Executive

16 order concerning the details of (A) the nature, prepa17 ration, or use of any code, cipher, or cryptographic

18 system of the United States; or (B) the design, con19 struction, use, maintenance, or repair of any cryp20 tographic equipment; Provided, however, That the

21 term does not include information concerning the use

22 of cryptographic systems or equipment required for

23 personal or office use;

24 ‘‘(2) the phrase ‘custodian of classified cryp25 tographic key’ means positions that require access to
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1 classified cryptographic key beyond that required to

2 use or operate cryptographic equipment for personal

3 or office use, future editions of classified cryp4 tographic key, or classified cryptographic key used for

5 multiple devices;

6 ‘‘(3) the term ‘classified cryptographic key’

7 means any information (usually a sequence of ran8 dom binary digits), in any form, classified by the

9 United States Government pursuant to law or Execu10 tive order that is used to set up and periodically

11 change the operations performed by any cryp12 tographic equipment;

13 ‘‘(4) the term ‘cryptographic equipment’ means

14 any device, apparatus or appliance used, or prepared,

15 or planned for use by the United States for the pur16 pose of authenticating communications or disguising

17 or concealing the contents, significance, or meanings

18 of communications;

19 ‘‘(5) the term ‘employee’ includes any person

20 who receives a salary or compensation of any kind

21 from a department or agency of the Executive branch,

22 or is a contractor or unpaid consultant of such de23 partment or agency;

24 ‘‘(6) the term ‘head of a department or agency’

25 refers to the highest official who exercises supervisory
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1 control over the employee concerned, and does not in2 clude any intermediate supervisory officials who may

3 otherwise qualify as heads of agencies within depart4 ments; and

5 ‘‘(7) the phrase ‘questions of a counterintelligence

6 nature’ means questions specified to the subject in ad7 vance of a polygraph examination solely to ascertain

8 whether the subject is engaged in, or planning, espio9 nage against the United States on behalf of a foreign

10 government or knows persons who are so engaged.

11 ‘‘SEC. 902. IMPLEMENTING REGULATIONS.—The

12 President shall, within 180 days of the date of enactment

13 of this title, promulgate regulations to implement the provi14 sions of this title. The President shall provide copies of such

15 regulations to the Select Committee on Intelligence of the

16 Senate and the Permanent Select Committee on Intelligence

17 of the House of Representatives.’’.

18 SEC. 1004. AMENDMENT TO RIGHT TO FINANCIAL PRIVACY

19 ACT.

20 Section 1104 of the Right to Financial Privacy Act

21 of 1978 (12 U.S.C. 3404) is amended by adding at the end

22 thereof the following new subsection:

23 ‘‘(d)(1) Notwithstanding the provisions of subsection

24 (a), a customer who is the subject of a personnel security

25 investigation conducted by an authorized investigative
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1 agency of the U.S. Government as a condition of being

2 granted or maintaining access to Top Secret information,

3 as defined by section 804(c) of the National Security Act

4 of 1947 (as added by section 1002 of the Counterintelligence

5 Improvements Act of 1994), may authorize nonrevokable

6 disclosure of all financial records maintained by financial

7 institutions for the period of the customer’s access to such

8 information and for up to 5 years after access to such infor9 mation has been terminated, by the investigative agency re10 sponsible for the conduct of such investigation, for an au11 thorized security purpose.

12 ‘‘(2) Such authority shall be contained in a signed and

13 dated statement of the customer which identifies the finan14 cial records which are authorized to be disclosed. Such state15 ment may also authorize the disclosure of financial records

16 of accounts opened during the period covered by the consent

17 agreement which are not identifiable at the time such con18 sent is provided. A copy of such statement shall be provided

19 by the investigative agency concerned to the financial insti20 tution from which disclosure is sought, together with the

21 certification required pursuant to section 1103(b) (12

22 U.S.C. 3403(b)).

23 ‘‘(3) The rights of the customer established by sub24 section (c), above, shall pertain to any disclosures made

25 pursuant to this subsection.
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1 ‘‘(4) On an annual basis, the office designated by

2 President pursuant to section 802(D) of the National Secu3 rity Act of 1947 (as added by section 1002 of the Counter4 intelligence Improvements Act of 1994), shall fully inform

5 the Permanent Select Committee on Intelligence of the

6 House of Representatives and the Select Committee on Intel7 ligence of the Senate concerning the number of requests for

8 financial records made pursuant to this section.’’.

9 SEC. 1005. NEW CRIMINAL OFFENSE FOR THE POSSESSION

10 OF ESPIONAGE DEVICES.

11 (a) IN GENERAL.—Chapter 37 of title 18, United

12 States Code, is amended by inserting at the end thereof the

13 following new section:

14 ‘‘POSSESSION OF ESPIONAGE DEVICES

15 ‘‘SEC. 799a. Whoever knowingly maintains possession

16 of any electronic, mechanical, or other device or equipment

17 the design and capability of which renders it primarily use18 ful for the purpose of surreptitiously collecting or commu19 nicating information, with the intent of utilizing such de20 vice or equipment to undertake actions which would violate

21 section 793, 794, 794a (as added by section 1006 of the

22 Counterintelligence Improvements Act of 1994), or 798 of

23 this title, or section 783(b) of title 50, United States Code,

24 shall be fined not more than $10,000 or imprisoned not

25 more than 5 years, or both.’’.
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1 (b) AMENDMENTS TO TABLE OF SECTIONS.—The table

2 of sections for chapter 37 of title 18, United States Code,

3 is amended by adding at the end thereof the following new

4 item:

‘‘799a. Possession of espionage devices.’’.

5 SEC. 1006. NEW OFFENSE FOR SALE OR TRANSFER TO FOR6 EIGN GOVERNMENTS DOCUMENTS AND

7 OTHER MATERIALS DESIGNATED AS TOP SE8 CRET.

9 (a) IN GENERAL.—Chapter 37 of title 18, United

10 States Code, is amended by inserting after section 794 the

11 following new section:

12 ‘‘SALE OR TRANSFER OF DOCUMENTS OR MATERIALS

13 MARKED AS ‘TOP SECRET’

14 ‘‘SEC. 794a. (a)(1) No person shall knowingly sell or

15 otherwise transfer for any valuable consideration to any

16 person whom he knows or has reason to believe to be an

17 agent or representative of a foreign government—

18 ‘‘(A) any document, writing, code book, sketch,

19 photograph, map, model, instrument, equipment, elec20 tronic storage media, or other material, or portion

21 thereof, knowing that it is marked or otherwise des22 ignated in any manner, pursuant to applicable law

23 and Executive order, as ‘Top Secret’, or

24 ‘‘(B) any such document, writing, code book,

25 sketch, photograph, map, model, instrument, equip-
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1 ment, electronic storage media, or other material, or

2 portion thereof, which has had such marking or des3 ignation removed without authority and the person

4 making the sale or transfer is aware of such removal.

5 ‘‘(2) Paragraph (1) shall not be deemed to be violated

6 by a person who makes such transfer pursuant to applicable

7 law or executive branch authority.

8 ‘‘(b) In any prosecution under this section, whether or

9 not the information or material in question has been prop10 erly marked or designated as ‘‘TOP SECRET’’ pursuant

11 to applicable law or Executive order shall not be an element

12 of the offense: Provided, however, That it shall be a defense

13 to any prosecution under this section that the information

14 or document in question has been officially released to the

15 public by an authorized representative of the United States

16 prior to the sale or transfer in question.

17 ‘‘(c) Violation of this section shall be punishable by

18 imprisonment for a maximum of 15 years.’’.

19 (b) AMENDMENTS TO TABLE OF SECTIONS.—The table

20 of sections for chapter 37 of title 18, United States Code,

21 is amended by inserting after the item relating to section

22 794 the following new item:

‘‘794a. Sale or transfer of documents or materials marked as ‘Top Secret’.’’
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1 SEC. 1007. LESSER CRIMINAL OFFENSE FOR THE REMOVAL

2 OF TOP SECRET DOCUMENTS BY GOVERN3 MENT EMPLOYEES AND CONTRACTORS.

4 (a) IN GENERAL.—Chapter 93 of title 18, United

5 States Code, is amended by inserting at the end thereof the

6 following new section:

7 ‘‘REMOVAL AND RETENTION OF ‘TOP SECRET’ DOCUMENTS

8 OR MATERIAL

9 ‘‘SEC. 1924. Whoever, being an officer, employee, con10 tractor or consultant, of the United States, and having, by

11 virtue of his office, employment, position, or contract, be12 comes possessed of documents or materials classified at the

13 level of ‘Top Secret’ pursuant to applicable law or Executive

14 order, knowingly removes such documents or materials

15 without authority and retains such documents or materials

16 at an unauthorized location shall be fined not more than

17 $1,000, or imprisoned for not more than one year, or both.’’.

18 (b) AMENDMENT TO TABLE OF SECTIONS.—The table

19 of sections for chapter 93 of title 18, United States Code,

20 is amended by adding at the end thereof the following new

21 item:

‘‘1924. Removal of ‘Top Secret’ documents or material.’’
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1 SEC. 1008. JURISDICTION OF UNITED STATES COURTS TO

2 TRY CASES INVOLVING ESPIONAGE OUTSIDE

3 THE UNITED STATES.

4 (a) Chapter 211 of title 18 of the United States Code

5 is amended by adding a new section 3239 as follows:

6 ‘‘§ 3239. Jurisdiction for espionage and related of7 fenses

8 ‘‘The trial for any offense involving a violation of—

9 ‘‘(a) section 793, 794, 794a (as added by section

10 1006 of the Counterintelligence Improvements Act of

11 1994), 798, 798a (as added by section 1005 of the

12 Counterintelligence Improvements Act of 1994), or

13 subsection 1030(a)(1) of this title;

14 ‘‘(b) section 601 of the National Security Act of

15 1947 as added by the Intelligence Identities Protec16 tion Act of 1982 (50 U.S.C. 421); or

17 ‘‘(c) subsections 4(b) or 4(c) of the Subversive Ac18 tivities Control Act of 1950 (U.S.C. 783(b) or 783(c));

19 begun or committed upon the high seas or elsewhere out of

20 the jurisdiction of any particular state or district, may be

21 prosecuted in the District of Columbia, or in the Eastern

22 District of Virginia, or in any other district authorized by

23 law.’’.

24 (b) The chapter analysis for chapter 211 of title 18

25 of the United States Code is amended by striking out

‘‘[3239. Repealed.]’’
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1 and inserting in lieu thereof:

‘‘3239. Jurisdiction for espionage and related offenses.’’

2 SEC. 1009. EXPANSION OF EXISTING STATUTE REGARDING

3 FORFEITURE OF COLLATERAL PROFITS OF

4 CRIME TO ADDITIONAL ESPIONAGE OF5 FENSES.

6 Section 3681 of title 18, United States Code, is amend7 ed—

8 (1) in subsection (a), by striking out ‘‘section

9 794 of this title’’ and inserting in lieu thereof ‘‘sec10 tions 793, 794, 794a (as added by section 1006 of the

11 Counterintelligence Improvements Act of 1994), 798,

12 and 799a (as added by section 1005 of the Counter13 intelligence Improvements Act of 1994) of this title

14 and section 783 of title 50, United States Code’’; and

15 (2) by adding at the end thereof the following

16 new subsection:

17 ‘‘(e) For purposes of this section, convictions pursuant

18 to military courts-martial for offenses comparable to viola19 tions of sections 793, 794, 794a (as added by section 1006

20 of the Counterintelligence Improvements Act of 1994), 798,

21 and 799a (as added by section 1005 of the Counterintel22 ligence Improvements Act of 1994) of this title, or a viola23 tion of section 783 of title 50, or convictions by foreign

24 courts for offenses which, if perpetrated within the United

25 States, would constitute offenses under sections 793, 794,
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1 794a (as added by section 1006 of the Counterintelligence

2 Improvements Act of 1994), 798, and 799a (as added by

3 section 1005 of the Counterintelligence Improvements Act

4 of 1994) of this title, or a violation of section 783 of title

5 50 shall be considered as convictions for which actions may

6 be ordered pursuant to this section.’’.

7 SEC. 1010. DENIAL OF ANNUITIES OR RETIRED PAY TO PER8 SONS CONVICTED OF ESPIONAGE IN FOREIGN

9 COURTS INVOLVING UNITED STATES INFOR10 MATION.

11 Section 8312 of title 5, United States Code, is amended

12 by adding at the end thereof the following new subsection:

13 ‘‘(d) For purposes of subsections (b)(1) and (c)(1), an

14 offense within the meaning of such subsections is established

15 if the Attorney General certifies to the agency employing

16 or formerly employing the person concerned—

17 ‘‘(i) that an individual subject to this chapter

18 has been convicted by an impartial court of appro19 priate jurisdiction within a foreign country in cir20 cumstances in which the conduct violates the provi21 sions of law enumerated in subsections (b)(1) and

22 (c)(1), or would violate such provisions, had such con23 duct taken place within the United States, and that

24 such conviction is not being appealed or that final ac25 tion has been taken on such appeal;
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1 ‘‘(2) that such conviction was obtained in ac2 cordance with procedures that provided the defendant

3 due process rights comparable to such rights provided

4 by the United States Constitution, and such convic5 tion was based upon evidence which would have been

6 admissible in the courts of the United States; and

7 ‘‘(3) that such conviction occurred after the date

8 of enactment of this subsection:

9 Provided, That any certification made pursuant to this

10 paragraph shall be subject to review by the United States

11 Court of Claims based upon the application of the individ12 ual concerned, or his or her attorney, alleging that any of

13 the conditions set forth in subsections (1), (2), (3), herein,

14 as certified by the Attorney General, have not been satisfied

15 in his or her particular circumstances. Should the court de16 termine that any of these conditions has not been satisfied

17 in such case, the court shall order any annuity or retire18 ment benefit to which the person concerned is entitled to

19 be restored and shall order that any payments which may

20 have been previously denied or withheld to be paid by the

21 department or agency concerned.
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1 SEC. 1011. AUTHORIZING THE FBI TO OBTAIN CONSUMER

2 REPORTS ON PERSONS BELIEVED TO BE

3 AGENTS OF FOREIGN POWERS.

4 Section 608 of the Consumer Credit Protection Act (15

5 U.S.C. 1681f) is amended—

6 (1) by inserting ‘‘(a)’’ before ‘‘Notwithstanding’’;

7 and

8 (2) by inserting at the end thereof the following

9 new subsections:

10 ‘‘(b) Notwithstanding the provisions of section 604, a

11 consumer reporting agency shall, upon request, furnish a

12 consumer report to the Federal Bureau of Investigation, if

13 the Director of the Federal Bureau of Investigation, or the

14 Director’s designee, certifies in writing to the consumer re15 porting agency that such records are sought in connection

16 with an authorized foreign counterintelligence investigation

17 and that there are specific and articulable facts giving rea18 son to believe that the person to whom the requested

19 consumer report relates is an agent of a foreign power, as

20 defined in section 101 of the Foreign Intelligence Surveil21 lance Act of 1978 (50 U.S.C. 1801).

22 ‘‘(c) Notwithstanding the provisions of section 604, a

23 consumer reporting agency shall furnish identifying infor24 mation respecting any consumer, limited to name, address,

25 former addresses, places of employment, or former places

26 of employment, to a representative of the Federal Bureau
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1 of Investigation when presented with a written request

2 signed by the Director of the Federal Bureau of Investiga3 tion, or the Director’s designee, stating that the information

4 is necessary to the conduct of an authorized foreign counter5 intelligence investigation.

6 ‘‘(d) No consumer reporting agency, or officer, em7 ployee, or agent of such institution shall disclose to any per8 son that the Federal Bureau of Investigation has sought or

9 obtained a consumer report or identifying information re10 specting any consumer under this section.

11 ‘‘(e) On an annual basis the Director of the Federal

12 Bureau of Investigation shall fully inform the Permanent

13 Select Committee on Intelligence of the House of Represent14 atives and the Select Committee on Intelligence of the Sen15 ate concerning all requests made under subsections (b) and

16 (c).’’.

17 SEC. 1012. TO PROVIDE FOR REWARDS FOR INFORMATION

18 CONCERNING ESPIONAGE.

19 (a) IN GENERAL.—Chapter 204 of title 18, United

20 States Code, is amended—

21 (1) by inserting at the end of the chapter head22 ing ‘‘AND ESPIONAGE’’;

23 (2) in section 3071, by inserting ‘‘(a)’’ imme24 diately before ‘‘With respect to’’;
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1 (3) in section 3071, adding at the end thereof the

2 following new subsection:

3 ‘‘(b) With respect to acts of espionage involving or di4 rected at United States information classified in the inter5 est of national security, the Attorney General may reward

6 any individual who furnishes information—

7 ‘‘(1) leading to the arrest or conviction, in any

8 country, of any individual or individuals for commis9 sion of an act of espionage against the United States;

10 ‘‘(2) leading to the arrest or conviction, in any

11 country, of any individual or individuals for conspir12 ing or attempting to commit an act of espionage

13 against the United States; or

14 ‘‘(3) leading to the prevention or frustration of

15 an act of espionage against the United States.’’.

16 (b) AMOUNT OF REWARDS.—Section 3072 of title 18,

17 United States Code, is amended by striking out ‘‘$500,000’’

18 and inserting in lieu thereof ‘‘$1,000,000’’.

19 (c) DEFINITIONS.—Section 3077 of title 18, United

20 States Code, is amended by inserting at the end thereof the

21 following new paragraphs:

22 ‘‘(8) ‘act of espionage’ means an activity that is

23 a violation of sections 794, 794a (as added by section

24 1006 of the Counterintelligence Improvements Act of

25 1994), 798, or 799a (as added by section 1005 of the
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1 Counterintelligence Improvements Act of 1994) of this

2 title or section 783 of title 50, United States Code.

3 ‘‘(9) ‘United States information classified in the

4 interests of national security’ means information

5 originated, owned, or possessed by the United States

6 Government concerning the national defense and for7 eign relations of the United States that has been de8 termined pursuant to law or Executive order to re9 quire protection against unauthorized disclosure and

10 that has been so designated.’’.

11 SEC. 1013. TO PROVIDE A COURT ORDER PROCESS FOR

12 PHYSICAL SEARCHES UNDERTAKEN FOR FOR13 EIGN INTELLIGENCE PURPOSES.

14 The Foreign Intelligence Surveillance Act of 1978 is

15 amended by inserting at the end thereof the following new

16 title:

17 ‘‘TITLE IV—PHYSICAL SEARCHES WITHIN THE

18 UNITED STATES FOR FOREIGN INTEL19 LIGENCE PURPOSES

20 ‘‘AUTHORIZATION OF PHYSICAL SEARCHES FOR FOREIGN

21 INTELLIGENCE PURPOSES

22 ‘‘SEC. 401. (a) Applications for a court order under

23 this title are authorized if the President has, in writing,

24 empowered the Attorney General to approve applications

25 to the Foreign Intelligence Surveillance Court, and a judge
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1 of that court to whom application is made may, notwith2 standing any other law, grant an order, in conformity with

3 section 403, approving a physical search in the United

4 States, for the purpose of collecting foreign intelligence in5 formation of—

6 ‘‘(1) the property, information or material of a

7 foreign power as defined in section 101(a)(1), (2),

8 and (3) of this Act, or

9 ‘‘(2) the premises, property, information or ma10 terial of an agent of a foreign power or a foreign

11 power as defined in section 101(a)(4), (5), and (6) of

12 this Act.

13 ‘‘(b) The Foreign Intelligence Surveillance Court shall

14 have jurisdiction to hear applications for and grant orders

15 approving a physical search for the purpose of obtaining

16 foreign intelligence information anywhere within the Unit17 ed States under the procedures set forth in this title, except

18 that no judge shall hear the same application which has

19 been denied previously by another judge. If any judge denies

20 an application for an order authorizing a physical search

21 under this title, such judge shall provide immediately for

22 the record a written statement of each reason for his deci23 sion and, on motion of the United States, the record shall

24 be transmitted, under seal, to the Court of Review.
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1 ‘‘(c) The Court of Review shall have jurisdiction to re2 view the denial of any application made under this title.

3 If such court determines that the application was properly

4 denied, the Court shall immediately provide for the record

5 a written statement of each reason for its decision and, on

6 petition of the United States for a writ of certiorari, the

7 record shall be transmitted under seal to the Supreme

8 Court, which shall have jurisdiction to review such decision.

9 ‘‘(d) Judicial proceedings under this title shall be con10 cluded as expeditiously as possible. The record of proceed11 ings under this title, including applications made and or12 ders granted, shall be maintained under security measures

13 established by the Chief Justice of the United States in con14 sultation with the Attorney General and the Director of

15 Central Intelligence.

16 ‘‘APPLICATION FOR AN ORDER

17 ‘‘SEC. 402. (a) Each application for an order approv18 ing a physical search under this title shall be made by a

19 Federal officer in writing upon oath or affirmation to a

20 judge of the Foreign Intelligence Surveillance Court. Each

21 application shall require the approval of the Attorney Gen22 eral based upon the Attorney General’s finding that it satis23 fied the criteria and requirements for such application as

24 set forth in this title. It shall include—

25 ‘‘(1) the identity, if known, or a description of

26 the target of the search;
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1 ‘‘(2) the authority conferred on the Attorney

2 General by the President of the United States and the

3 approval of the Attorney General to make the applica4 tion;

5 ‘‘(3) the identity of the Federal officer making

6 the application and a detailed description of the

7 premises or property to be searched and of the infor8 mation, material, or property to be seized, repro9 duced, or altered;

10 ‘‘(4) a statement of the facts and circumstances

11 relied upon by the applicant to justify the applicant’s

12 belief that—

13 ‘‘(A) the target of the physical search is a

14 foreign power or an agent of a foreign power;

15 ‘‘(B) the premises or property to be searched

16 contains foreign intelligence information;

17 ‘‘(C) the premises or property to be searched

18 is owned, used, possessed by, or is in transit to

19 or from a foreign power or an agent of a foreign

20 power;

21 ‘‘(5) a statement of the proposed minimization

22 procedures;

23 ‘‘(6) a statement of the manner in which the

24 physical search is to be conducted;
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1 ‘‘(7) a statement of the facts concerning all pre2 vious applications that have been made to any judge

3 under this title involving any of the persons, prem4 ises, or property specified in the application, and the

5 action taken on each previous applications;

6 ‘‘(8) a statement of the facts concerning any

7 search described in section 406(b), below, which in8 volves any of the persons, premises, or property speci9 fied in the application; and

10 ‘‘(9) a statement that the purpose of the physical

11 search is to obtain foreign intelligence information.

12 ‘‘(b) The judge may require the applicant to furnish

13 such other information as may be necessary to make the

14 determinations required by section 403.

15 ‘‘ISSUANCE OF AN ORDER

16 ‘‘SEC. 403. (a) Upon an application made pursuant

17 to section 402, the judge shall enter an ex parte order as

18 requested or as modified approving the physical search if

19 the judge finds that—

20 ‘‘(1) the President has authorized the Attorney

21 General to approve applications for physical searches

22 for foreign intelligence purposes;

23 ‘‘(2) the application has been made by a Federal

24 officer and approved by the Attorney General;

25 ‘‘(3) on the basis of the facts submitted by the

26 applicant there is probable cause to believe that—
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1 ‘‘(A) the target of the physical search is a

2 foreign power or an agent of a foreign power:

3 Provided, That no United States person may be

4 considered an agent of a foreign power solely

5 upon the basis of activities protected by the first

6 amendment to the Constitution of the United

7 States;

8 ‘‘(B) the premises or property to be searched

9 are owned, used, possessed by, or is in transit to

10 or from an agent of a foreign power or a foreign

11 power; and

12 ‘‘(C) physical search of such premises or

13 property can reasonably be expected to yield for14 eign intelligence information which cannot rea15 sonably be obtained by normal investigative

16 means; and

17 ‘‘(4) the proposed minimization procedures meet

18 the definition of minimization contained in this title;

19 and

20 ‘‘(5) the application which has been filed con21 tains all statements required by section 402.

22 ‘‘(b) An order approving a physical search under this

23 section shall—

24 ‘‘(1) specify—
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1 ‘‘(A) the Federal officer or officers author2 ized to conduct the physical search and the iden3 tity, if known, or a description of the target of

4 the physical search;

5 ‘‘(B) the premises or property to be searched

6 and the information, material, or property to be

7 seized, altered, or reproduced;

8 ‘‘(C) the type of foreign intelligence infor9 mation sought to be acquired; and

10 ‘‘(D) a statement of the manner in which

11 the physical search is to be conducted and, when12 ever more than one physical search is authorized

13 under the order, the authorized scope of each

14 search and what minimization procedures shall

15 apply to the information acquired by each

16 search;

17 ‘‘(2) direct—

18 ‘‘(A) that the minimization procedures be

19 followed;

20 ‘‘(B) that, upon the request of the applicant,

21 a specified landlord, custodian, or other specified

22 person furnish the applicant forthwith all infor23 mation, facilities, or assistance necessary to ac24 complish the physical search in such a manner

25 as will protect its secrecy and produce a mini-
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1 mum of interference with the activities of the

2 landlord, custodian, or other person; and that

3 such landlord, custodian or other person main4 tain under security procedures approved by the

5 Attorney General and the Director of Central In6 telligence any records concerning the search or

7 the aid furnished that such person wishes to re8 tain;

9 ‘‘(C) that the physical search be undertaken

10 within 30 days of the date of the order, or, if the

11 physical search is of the property, information or

12 material of a foreign power as defined in section

13 101(a)(1), (2), or (3) of this Act, that such search

14 be undertaken within one year of the order; and

15 ‘‘(D) that the federal officer conducting the

16 physical search promptly report to the court the

17 circumstances and results of the physical search.

18 ‘‘(c) At any time after a physical search has been car19 ried out, the judge to whom the return has been made may

20 assess compliance with the minimization procedures by re21 viewing the circumstances under which information con22 cerning United States persons was acquired, retained, or

23 disseminated.
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1 ‘‘(d) Application made and orders granted under this

2 title shall be retained for a period of at least ten years from

3 the date of the application.

4 ‘‘(e) Not more than 60 days after a physical search

5 of the residence of a United States person authorized by

6 this title, or such a search in the circumstances described

7 in section 406(b), has been conducted, the Attorney General

8 shall provide the United States person with an inventory

9 which shall include—

10 ‘‘(1) existence or not of a court order authorizing

11 the physical search and the date of the order;

12 ‘‘(2) the date of the physical search and an iden13 tification of the premises or property searched; and

14 ‘‘(3) a list of any information, material, or

15 property seized, altered, or reproduced.

16 ‘‘(f) On an ex parte showing of good cause by the Attor17 ney General to a judge of the Foreign Intelligence Surveil18 lance Court the provision of the inventory required by sub19 section (e) may be postponed for a period not to exceed 90

20 days. At the end of such period the provision of the inven21 tory may, upon a similar showing, be postponed indefi22 nitely. The denial of a request for such postponements may

23 be reviewed as provided in section 401.

24 ‘‘USE OF INFORMATION

25 ‘‘SEC. 404. (a) Information acquired from a physical

26 search conducted pursuant to this title concerning any
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1 United States person may be used and disclosed by Federal

2 officers and employees without the consent of the United

3 States person only in accordance with the minimization

4 procedures required by this title. No information acquired

5 from a physical search pursuant to this title may be used

6 or disclosed by Federal officers or employees except for law7 ful purposes.

8 ‘‘(b) No information acquired pursuant to this title

9 shall be disclosed for law enforcement purposes unless such

10 disclosure is accompanied by a statement that such infor11 mation, or any information derived therefrom, may only

12 be used in a criminal proceeding with the advance author13 ization of the Attorney General.

14 ‘‘(c) Whenever the United States intends to enter into

15 evidence or otherwise use or disclose in any trial, hearing,

16 or other proceeding in or before any court, department, offi17 cer, agency, regulatory body, or other authority of the Unit18 ed States, against an aggrieved person, any information ob19 tained or derived from a physical search of the premises

20 or property of that aggrieved person pursuant to the author21 ity of this title, the United States shall, prior to the trial,

22 hearing, or the other proceeding or at a reasonable time

23 prior to an effort to so disclose or so use that information

24 or submit it in evidence, notify the aggrieved person and

25 the court or other authority in which the information is
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1 to be disclosed or used that the United States intends to

2 so disclose or so use such information.

3 ‘‘(d) Whenever any State or political subdivision there4 of intends to enter into evidence or otherwise use of disclose

5 in any trial, hearing, or other proceeding in or before any

6 court, department, officer, agency, regulatory body, or other

7 authority of a State or a political subdivision thereof

8 against an aggrieved person any information obtained or

9 derived from a physical search of the premises or property

10 of that aggrieved person pursuant to the authority of this

11 title, the State or political subdivision thereof shall notify

12 the aggrieved person, the court or other authority in which

13 the information is to be disclosed or used, and the Attorney

14 General that the State or political subdivision thereof in15 tends to so disclose or so use such information.

16 ‘‘(e) Any person against whom evidence obtained or

17 derived from a physical search to which he is an aggrieved

18 person is to be, or has been, introduced or otherwise used

19 or disclosed in any trial, hearing, or other proceeding in

20 or before any court, department, officer, agency, regulatory

21 body, or other authority of the United States, a State, or

22 a political subdivision thereof, may move to suppress the

23 evidence obtained or derived from such search on the

24 grounds that—

25 ‘‘(1) the information was unlawfully acquired; or
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1 ‘‘(2) the physical search was not made in con2 formity with an order of authorization or approval.

3 Such a motion shall be made before the trial, hearing, or

4 other proceeding unless there was no opportunity to make

5 such a motion or the person was not aware of the grounds

6 of the motion.

7 ‘‘(f) Whenever a court of other authority is notified

8 pursuant to subsection (c) or (d), or whenever a motion is

9 made pursuant to subsection (e), or whenever any motion

10 or request is made by an aggrieved person pursuant to any

11 other statute or rule of the United States or any State before

12 any court or other authority of the United States or any

13 State to discover or obtain applications or orders or other

14 materials relating to a physical search authorized by this

15 title or to discover, obtain, or suppress evidence or informa16 tion obtained or derived from a physical search authorized

17 by this title, the United States district court or, where the

18 motion is made before another authority, the United States

19 district court in the same district as the authority shall,

20 notwithstanding any other law, if the Attorney General files

21 an affidavit under oath that disclosure or an adversary

22 hearing would harm the national security of the United

23 States, review in camera and ex parte the application,

24 order, and such other materials relating to the physical

25 search as may be necessary to determine whether the phys-
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1 ical search of the aggrieved person was lawfully authorized

2 and conducted. In making this determination, the court

3 may disclose to the aggrieved person, under appropriate se4 curity procedures and protective orders, portions of the ap5 plication, order, or other materials relating to the physical

6 search only where such disclosure is necessary to make an

7 accurate determination of the legality of the physical search.

8 ‘‘(g) If the United States district court pursuant to

9 subsection (f) determines that the physical search was not

10 lawfully authorized or conducted, it shall, in accordance

11 with the requirements of law, suppress the evidence which

12 was unlawfully obtained or derived from the physical search

13 of the aggrieved person or otherwise grant the motion of

14 the aggrieved person. If the court determines that the phys15 ical search was lawfully authorized or conducted, it shall

16 deny the motion of the aggrieved person except to the extent

17 that due process requires discovery or disclosure.

18 ‘‘(h) Orders granting motions or requests under sub19 section (g), decisions under this section that a physical

20 search was not lawfully authorized or conducted, and orders

21 of the United States district court requiring review or

22 granting disclosure of applications, orders or other mate23 rials relating to the physical search shall be final orders

24 and binding upon all courts of the United States and the
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1 several States except a United States court of appeals and

2 the Supreme Court.

3 ‘‘(i) The provisions of this section regarding the use

4 or disclosure of information obtained or derived from a

5 physical search shall apply to information obtained or de6 rived from a search conducted without a court order to ob7 tain foreign intelligence information which is not a phys8 ical search as defined in this title solely because the exist9 ence of exigent circumstances would not require a warrant

10 for law enforcement purposes.

11 ‘‘OVERSIGHT

12 ‘‘SEC. 405. (a) On a semiannual basis the Attorney

13 General shall fully inform the House Permanent Select

14 Committee on Intelligence and the Senate Select Committee

15 on Intelligence concerning all physical searches conducted

16 pursuant to this title, and all other searches, except those

17 reported under section 108 of this Act, conducted in the

18 United States for foreign intelligence purposes. On an an19 nual basis the Attorney General shall also provide to those

20 committees a report setting forth with respect to the preced21 ing calendar year—

22 ‘‘(1) the total number of applications made for

23 orders approving physical searches under this title;

24 and

25 ‘‘(2) the total number of such orders either grant26 ed, modified, or denied.
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1 ‘‘(b) Whenever a search is conducted without a court

2 order to obtain foreign intelligence information which is not

3 a physical search as defined in this title solely because the

4 existence of exigent circumstances would not require a war5 rant for law enforcement purposes, a full report of such

6 search, including a description of the exigent circumstances,

7 shall be maintained by the Attorney General. Each such

8 report shall be transmitted to the Foreign Intelligence Sur9 veillance Court promptly after the search is conducted.

10 ‘‘AUTHORITY FOR INTELLIGENCE SEARCHES

11 ‘‘SEC. 406. (a) The procedures contained in this title

12 shall be the exclusive means by which a physical search,

13 as defined in this title, may be conducted in the United

14 States for foreign intelligence purposes, and an order issued

15 under this title authorizing a physical search shall con16 stitute a search warrant authorized by law for purposes of

17 any other law.

18 ‘‘(b) Searches conducted in the United States to collect

19 foreign intelligence information, other than physical

20 searches as defined in this title and electronic surveillance

21 as defined in this Act, and physical searches conducted in

22 the United States without a court order to collect foreign

23 intelligence information may be conducted only pursuant

24 to regulations issued by the Attorney General. Such regula25 tions, and any changes thereto, shall be provided to the Se26 lect Committee on Intelligence of the Senate and the Perma-
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1 nent Select Committee on Intelligence of the House of Rep2 resentatives at least 14 days prior to the taking effect. Any

3 regulations issued by the Attorney General regarding such

4 searches which were in effect as of June 1, 1990, shall be

5 deemed to be regulations required by this subsection.

6 ‘‘PENALTIES

7 ‘‘SEC. 407. (a) OFFENSE.—A person is guilty of an

8 offense if he intentionally—

9 ‘‘(1) under color of law for the purpose of obtain10 ing foreign intelligence information, engages in phys11 ical search within the United States except as author12 ized by statute; or

13 ‘‘(2) discloses or uses information obtained under

14 color of law by physical search within the United

15 States, knowing or having reason to know that the in16 formation was obtained through physical search not

17 authorized by statute, for the purpose of obtaining in18 telligence information.

19 ‘‘(b) DEFENSE.—It is a defense to a prosecution under

20 subsection (a) that the defendant was a law enforcement

21 or investigative officer engaged in the course of his official

22 duties and the physical search was authorized by and con23 ducted pursuant to a search warrant or court order of a

24 court of competent jurisdiction.
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1 ‘‘(c) PENALTY.—An offense described in this section is

2 punishable by a fine of not more than $10,000 or imprison3 ment for not more than five years, or both.

4 ‘‘(d) JURISDICTION.—There is Federal jurisdiction

5 over an offense under this section if the person committing

6 the offense was an officer or employee of the United States

7 at the time the offense was committed.

8 ‘‘CIVIL LIABILITY

9 ‘‘SEC. 408. CIVIL ACTION.—An aggrieved person, other

10 than a foreign power or an agent of a foreign power, as

11 defined in section 101 (a) or (b)(1)(A), respectively, of this

12 Act, whose premises, property, information, or material has

13 been subjected to a physical search within the United States

14 or about whom information obtained by such a physical

15 search has been disclosed or used in violation of section 407

16 shall have a cause of action against any person who com17 mitted such violation and shall be entitled to recover—

18 ‘‘(a) actual damages;

19 ‘‘(b) punitive damages; and

20 ‘‘(c) reasonable attorney’s fees and other inves21 tigative and litigation costs reasonably incurred.

22 ‘‘DEFINITIONS

23 ‘‘SEC. 409. As used in this title:

24 ‘‘(a) The terms ‘foreign power,’ ‘agent of a for25 eign power,’ ‘international terrorism,’ ‘sabotage,’ ‘for26 eign intelligence information,’ ‘Attorney General,’
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1 ‘United States person,’ ‘United States’,’ ‘person,’ and

2 ‘State’ shall have the same meaning as in Section 101

3 of this Act.

4 ‘‘(b) ‘Physical search’ means any physical intru5 sion into premises or property (including examina6 tion of the interior of property by technical means)

7 or any seizure, reproduction or alteration of informa8 tion, material or property, under circumstances in

9 which a person has a reasonable expectation of pri10 vacy and a warrant would be required for law en11 forcement purposes, but does not include ‘electronic

12 surveillance’ as defined in subsection 101(f) of this

13 Act.

14 ‘‘(c) ‘Minimization procedures’ with respect to

15 physical search, means—

16 ‘‘(1) specific procedures, which shall be

17 adopted by the Attorney General, that are rea18 sonably designed in light of the purposes and

19 technique of the particular physical search, to

20 minimize the acquisition and retention, and pro21 hibit the dissemination, of non-publicly available

22 information concerning unconsenting United

23 States persons consistent with the need of the

24 United States persons consistent with the need of
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1 the United States to obtain, produce, and dis2 seminate foreign intelligence information;

3 ‘‘(2) procedures that require that non-pub4 licly available information, which is not foreign

5 intelligence information, as defined in subsection

6 101(e)(1) of this Act, shall not be disseminated

7 in a manner that identifies any United States

8 person, without such person’s consent, unless

9 such person’s identity is necessary to understand

10 such foreign intelligence information or assess its

11 importance; and

12 ‘‘(3) notwithstanding paragraphs (1) and

13 (2), procedures that allow for the retention and

14 dissemination of information that is evidence of

15 a crime which has been, is being, or is about to

16 be committed and that is to be retained or dis17 seminated for law enforcement purposes.’’

18 ‘‘(d) ‘Aggrieved person’ means a person whose

19 premises, property, information, or material is the

20 target of physical search or any other person whose

21 premises, property, information, or material was sub22 ject to physical search.

23 ‘‘(e) ‘Foreign Intelligence Surveillance Court’

24 means the court established by section 103(a) of this

25 Act.
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1 ‘‘(f) ‘Court of Review’ means the court estab2 lished by section 103(b) of this Act.

3 ‘‘EFFECTIVE DATE

4 ‘‘SEC. 410. The provisions of this title shall become ef5 fective 90 days after the date of enactment of this title, ex6 cept that any physical search approved by the Attorney

7 General to gather foreign intelligence information shall not

8 be deemed unlawful for failure to follow the procedures of

9 this title, if that search is conducted within 180 days follow10 ing the date of enactment of this title pursuant to regula11 tions issued by the Attorney General, which are in the pos12 session of the Select Committee on Intelligence of the Senate

13 and the Permanent Select Committee on Intelligence of the

14 House of Representatives prior to the date of enactment.’’.

15 TITLE XI—LOCAL EMPOWER16 MENT AND FLEXIBILITY

17 SEC. 1101. SHORT TITLE.

18 This title may be cited as the ‘‘Local Empowerment

19 and Flexibility Act of 1994’’.

20 SEC. 1102. FINDINGS.

21 The Congress finds that—

22 (1) historically, Federal social service programs

23 have addressed the Nation’s social problems by pro24 viding categorical assistance with detailed require25 ments relating to the use of funds;
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1 (2) while the assistance described in paragraph

2 (1) has been directed at critical problems, some pro3 gram requirements may inadvertently impede the ef4 fective delivery of social services;

5 (3) the Nation’s local governments and private,

6 nonprofit organizations are dealing with increasingly

7 complex social problems which require the delivery of

8 many kinds of social services;

9 (4) the Nation’s communities are diverse, and

10 different social needs are present in different commu11 nities;

12 (5) it is more important than ever to provide

13 programs that—

14 (A) promote local delivery of social services

15 to meet the full range of needs of individuals and

16 families;

17 (B) respond flexibly to the diverse needs of

18 the Nation’s communities;

19 (C) reduce the barriers between programs

20 that impede local governments’ ability to effec21 tively deliver social services; and

22 (D) empower local governments and pri23 vate, nonprofit organizations to be innovative in

24 creating programs that meet the unique needs of
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1 the people in their communities while continuing

2 to address national social service goals; and

3 (6) many communities have innovative planning

4 and community involvement strategies for social serv5 ices, but Federal, State, and local regulations often

6 hamper full implementation of local plans.

7 SEC. 1103. PURPOSES.

8 The purposes of this title are to—

9 (1) enable more efficient use of Federal, State,

10 and local resources;

11 (2) place less emphasis in Federal social service

12 programs on measuring resources and procedures and

13 more emphasis on achieving Federal, State, and local

14 social services goals;

15 (3) enable local governments and private, non16 profit organizations to adapt programs of Federal as17 sistance to the particular needs of low income citizens

18 and the operating practices of recipients, by—

19 (A) drawing upon appropriations available

20 from more than one Federal program; and

21 (B) integrating programs and program

22 funds across existing Federal assistance cat23 egories; and

24 (4) enable local governments and private, non25 profit organizations to work together and build
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1 stronger cooperative partnerships to address critical

2 social service problems.

3 SEC. 1104. DEFINITIONS.

4 For purposes of this Act—

5 (1) the term ‘‘approved local flexibility plan’’

6 means a local flexibility plan that combines funds

7 from Federal, State, local government or private

8 sources to address the social service needs of a commu9 nity (or any part of such a plan) that is approved

10 by the Community Enterprise Board under section

11 1106;

12 (2) the term ‘‘community advisory committee’’

13 means such a committee established by a local govern14 ment under section 1110;

15 (3) the term ‘‘Community Enterprise Board’’

16 means the board established by the President that is

17 composed of the—

18 (A) Vice President;

19 (B) Assistant to the President for Domestic

20 Policy;

21 (C) Assistant to the President for Economic

22 Policy;

23 (D) Secretary of the Treasury;

24 (E) Attorney General;

25 (F) Secretary of the Interior;
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1 (G) Secretary of Agriculture;

2 (H) Secretary of Commerce;

3 (I) Secretary of Labor;

4 (J) Secretary of Health and Human Serv5 ices;

6 (K) Secretary of Housing and Urban Devel7 opment;

8 (L) Secretary of Transportation;

9 (M) Secretary of Education;

10 (N) Administrator of the Environmental

11 Protection Agency;

12 (O) Director of National Drug Control Pol13 icy;

14 (P) Administrator of the Small Business

15 Administration;

16 (Q) Director of the Office of Management

17 and Budget; and

18 (R) Chair of the Council of Economic Ad19 visers.

20 (4) the term ‘‘covered Federal assistance pro21 gram’’ means an eligible Federal assistance program

22 that is included in a local flexibility plan of a local

23 government;

24 (5) the term ‘‘eligible Federal assistance pro25 gram’’—
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1 (A) means a Federal program under which

2 assistance is available, directly or indirectly, to

3 a local government or a qualified organization to

4 carry out a program for—

5 (i) economic development;

6 (ii) employment training;

7 (iii) health;

8 (iv) housing;

9 (v) nutrition;

10 (vi) other social services; or

11 (vii) rural development; and

12 (B) does not include a Federal program

13 under which assistance is provided by the Fed14 eral Government directly to a beneficiary of that

15 assistance or to a State as a direct payment to

16 an individual;

17 (6) the term ‘‘eligible local government’’ means a

18 local government that is eligible to receive assistance

19 under 1 or more covered Federal programs;

20 (7) the term ‘‘local flexibility plan’’ means a

21 comprehensive plan for the integration and adminis22 tration by a local government of assistance provided

23 by the Federal Government under 2 or more eligible

24 Federal assistance programs;
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1 (8) the term ‘‘local government’’ means a sub2 division of a State that is a unit of general local gov3 ernment (as defined under section 6501 of title 31,

4 United States Code);

5 (9) the term ‘‘low income’’ means having an in6 come that is not greater than 200 percent of the Fed7 eral poverty income level;

8 (10) the term ‘‘priority funding’’ means giving

9 higher priority (including by the assignment of extra

10 points, if applicable) to applications for Federal as11 sistance submitted by a local government having an

12 approved local flexibility program, by—

13 (A) a person located in the jurisdiction of

14 such a government; or

15 (B) a qualified organization eligible for as16 sistance under a covered Federal assistance pro17 gram included in such a plan;

18 (11) the term ‘‘qualified organization’’ means a

19 private, nonprofit organization described in section

20 501(c)(3) of the Internal Revenue Code of 1986 that

21 is exempt from taxation under section 501(a) of the

22 Internal Revenue Code of 1986; and

23 (12) the term ‘‘State’’ means the 50 States, the

24 District of Columbia, Puerto Rico, American Samoa,

25 Guam, and the Virgin Islands.
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1 SEC. 1105. DEMONSTRATION PROGRAM.

2 The Community Enterprise Board shall—

3 (1) establish and administer a local flexibility

4 demonstration program by approving local flexibility

5 plans in accordance with the provisions of this title;

6 (2) no later than 180 days after the date of the

7 enactment of this Act, select no more than 30 local

8 governments from no more than 6 States to partici9 pate in such program, of which—

10 (A) 3 States shall each have a population of

11 3,500,000 or more as determined under the most

12 recent decennial census; and

13 (B) 3 States shall each have a population of

14 3,500,000 or less as determined under the most

15 recent decennial census.

16 SEC. 1106. PROVISION OF FEDERAL ASSISTANCE IN AC17 CORDANCE WITH APPROVED LOCAL FLEXI18 BILITY PLAN.

19 (a) PAYMENTS TO LOCAL GOVERNMENTS.—Notwith20 standing any other provision of law, amounts available to

21 a local government or a qualified organization under a cov22 ered Federal assistance program included in an approved

23 local flexibility plan shall be provided to and used by the

24 local government or organization in accordance with the

25 approved local flexibility plan.
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1 (b) ELIGIBILITY FOR BENEFITS.—An individual or

2 family that is eligible for benefits or services under a cov3 ered Federal assistance program included in an approved

4 local flexibility plan may receive those benefits only in ac5 cordance with the approved local flexibility plan.

6 SEC. 1107. APPLICATION FOR APPROVAL OF LOCAL FLEXI7 BILITY PLAN.

8 (a) IN GENERAL.—A local government may submit to

9 the Community Enterprise Board in accordance with this

10 section an application for approval of a local flexibility

11 plan.

12 (b) CONTENTS OF APPLICATION.—An application sub13 mitted under this section shall include—

14 (1) a proposed local flexibility plan that com15 plies with subsection (c);

16 (2) certification by the chief executive of the local

17 government, and such additional assurances as may

18 be required by the Community Enterprise Board,

19 that—

20 (A) the local government has the ability and

21 authority to implement the proposed plan, di22 rectly or through contractual or other arrange23 ments, throughout the geographic area in which

24 the proposed plan is intended to apply;
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1 (B) amounts are available from non-Federal

2 sources to pay the non-Federal share of all cov3 ered Federal assistance programs included in the

4 proposed plan; and

5 (C) low income individuals and families

6 that reside in that geographic area participated

7 in the development of the proposed plan;

8 (3) any comments on the proposed plan submit9 ted under subsection (d) by the Governor of the State

10 in which the local government is located;

11 (4) public comments on the plan including the

12 transcript of at least 1 public hearing and comments

13 of the appropriate community advisory committee es14 tablished under section 1110; and

15 (5) other relevant information the Community

16 Enterprise Board may require to approve the pro17 posed plan.

18 (c) CONTENTS OF PLAN.—A local flexibility plan sub19 mitted by a local government under this section shall in20 clude—

21 (1) the geographic area to which the plan applies

22 and the rationale for defining the area;

23 (2) the particular groups of individuals, by age,

24 service needs, economic circumstances, or other defin-
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1 ing factors, who shall receive services and benefits

2 under the plan;

3 (3)(A) specific goals and measurable performance

4 criteria, a description of how the plan is expected to

5 attain those goals and criteria;

6 (B) a description of how performance shall be

7 measured; and

8 (C) a system for the comprehensive evaluation of

9 the impact of the plan on participants, the commu10 nity, and program costs;

11 (4) the eligible Federal assistance programs to be

12 included in the plan as covered Federal assistance

13 programs and the specific benefits that shall be pro14 vided under the plan under such programs, includ15 ing—

16 (A) criteria for determining eligibility for

17 benefits under the plan;

18 (B) the services available;

19 (C) the amounts and form (such as cash, in20 kind contributions, or financial instruments) of

21 nonservice benefits; and

22 (D) any other descriptive information the

23 Community Enterprise Board considers nec24 essary to approve the plan;
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1 (5) except for the requirements under section

2 1109(b)(3), any Federal statutory or regulatory re3 quirement applicable under a covered Federal assist4 ance program included in the plan, the waiver of

5 which is necessary to implement the plan;

6 (6) fiscal control and related accountability pro7 cedures applicable under the plan;

8 (7) a description of the sources of all non-Federal

9 funds that are required to carry out covered Federal

10 assistance programs included in the plan;

11 (8) written consent from each qualified organiza12 tion for which consent is required under section

13 1107(b)(2); and

14 (9) other relevant information the Community

15 Enterprise Board may require to approve the plan.

16 (d) PROCEDURE FOR APPLYING.—(1) To apply for ap17 proval of a local flexibility plan, a local government shall

18 submit an application in accordance with this section to

19 the Governor of the State in which the local government

20 is located.

21 (2) A Governor who receives an application from a

22 local government under paragraph (1) may, by no later

23 than 30 days after the date of that receipt—

24 (A) prepare comments on the proposed local

25 flexibility plan included in the application;
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1 (B) describe any State laws which are necessary

2 to waive for successful implementation of a local

3 plan; and

4 (C) submit the application and comments to the

5 Community Enterprise Board.

6 (3) If a Governor fails to act within 30 days after re7 ceiving an application under paragraph (2), the applicable

8 local government may submit the application to the Com9 munity Enterprise Board.

10 SEC. 1108. REVIEW AND APPROVAL OF LOCAL FLEXIBILITY

11 PLANS.

12 (a) REVIEW OF APPLICATIONS.—Upon receipt of an

13 application for approval of a local flexibility plan under

14 this title, the Community Enterprise Board shall—

15 (1) approve or disapprove all or part of the plan

16 within 45 days after receipt of the application;

17 (2) notify the applicant in writing of that ap18 proval or disapproval by not later than 15 days after

19 the date of that approval or disapproval; and

20 (3) in the case of any disapproval of a plan, in21 clude a written justification of the reasons for dis22 approval in the notice of disapproval sent to the

23 applicant.

24 (b) APPROVAL.—(1) The Community Enterprise

25 Board may approve a local flexibility plan for which an
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1 application is submitted under this title, or any part of

2 such a plan, if a majority of members of the Board deter3 mines that—

4 (A) the plan or part shall improve the effective5 ness and efficiency of providing benefits under covered

6 Federal programs included in the plan by reducing

7 administrative inflexibility, duplication, and unnec8 essary expenditures;

9 (B) the applicant local government has ade10 quately considered, and the plan or part of the plan

11 appropriately addresses, any effect that administra12 tion of each covered Federal program under the plan

13 or part of the plan shall have on administration of

14 the other covered Federal programs under that plan

15 or part of the plan;

16 (C) the applicant local government has or is de17 veloping data bases, planning, and evaluation proc18 esses that are adequate for implementing the plan or

19 part of the plan;

20 (D) the plan shall more effectively achieve Fed21 eral assistance goals at the local level and shall better

22 meet the needs of local citizens;

23 (E) implementation of the plan or part of the

24 plan shall adequately achieve the purposes of this title
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1 and of each covered Federal assistance program under

2 the plan or part of the plan;

3 (F) the plan and the application for approval of

4 the plan comply with the requirements of this title;

5 (G) the plan or part of the plan is adequate to

6 ensure that individuals and families that receive ben7 efits under covered Federal assistance programs in8 cluded in the plan or part shall continue to receive

9 benefits that meet the needs intended to be met under

10 the program;

11 (H) the qualitative level of those benefits shall

12 not be reduced for any individual or family; and

13 (I) the local government has—

14 (i) waived the corresponding local laws nec15 essary for implementation of the plan; and

16 (ii) sought any necessary waivers from the

17 State.

18 (2) The Community Enterprise Board may not ap19 prove any part of a local flexibility plan if—

20 (A) implementation of that part would result in

21 any increase in the total amount of obligations or

22 outlays of discretionary appropriations or direct

23 spending under covered Federal assistance programs

24 included in that part, over the amounts of such obli-
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1 gations and outlays that would occur under those pro2 grams without implementation of the part; or

3 (B) in the case of a plan or part that applies to

4 assistance to a qualified organization under an eligi5 ble Federal assistance program, the qualified organi6 zation does not consent in writing to the receipt of

7 that assistance in accordance with the plan.

8 (3) The Community Enterprise Board shall dis9 approve a part of a local flexibility plan if a majority of

10 the Board disapproves that part of the plan based on a fail11 ure of the part to comply with paragraph (1).

12 (4) In approving any part of a local flexibility plan,

13 the Community Enterprise Board shall specify the period

14 during which the part is effective. An approved local flexi15 bility plan shall not be effective after the date of the termi16 nation of effectiveness of this title under section 1113(a).

17 (5) Disapproval by the Community Enterprise Board

18 of any part of a local flexibility plan submitted by a local

19 government under this title shall not affect the eligibility

20 of a local government, a qualified organization, or any in21 dividual for benefits under any Federal program.

22 (c) MEMORANDA OF UNDERSTANDING.—(1) The Com23 munity Enterprise Board may not approve a part of a local

24 flexibility plan unless each local government and each

25 qualified organization that would receive assistance under
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1 the plan enters into a memorandum of understanding

2 under this subsection with the Community Enterprise

3 Board.

4 (2) A memorandum of understanding under this sub5 section shall specify all understandings that have been

6 reached by the Community Enterprise Board, the local gov7 ernment, and each qualified organization that is subject to

8 a local flexibility plan, regarding the approval and imple9 mentation of all parts of a local flexibility plan that are

10 the subject of the memorandum, including understandings

11 with respect to—

12 (A) all requirements under covered Federal as13 sistance programs that are to be waived by the Com14 munity Enterprise Board under section 1109(b);

15 (B)(i) the total amount of Federal funds that

16 shall be provided as benefits under or used to admin17 ister covered Federal assistance programs included in

18 those parts; or

19 (ii) a mechanism for determining that amount,

20 including specification of the total amount of Federal

21 funds that shall be provided or used under each cov22 ered Federal assistance program included in those

23 parts;
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1 (C) the sources of all non-Federal funds that

2 shall be provided as benefits under or used to admin3 ister those parts;

4 (D) measurable performance criteria that shall

5 be used during the term of those parts to determine

6 the extent to which the goals and performance levels

7 of the parts are achieved; and

8 (E) the data to be collected to make that deter9 mination.

10 (d) LIMITATION ON CONFIDENTIALITY REQUIRE11 MENTS.—The Community Enterprise Board may not, as a

12 condition of approval of any part of a local flexibility plan

13 or with respect to the implementation of any part of an

14 approved local flexibility plan, establish any confidentiality

15 requirement that would—

16 (1) impede the exchange of information needed

17 for the design or provision of benefits under the parts;

18 or

19 (2) conflict with law.

20 SEC. 1109. IMPLEMENTATION OF APPROVED LOCAL FLEXI21 BILITY PLANS; WAIVER OF REQUIREMENTS.

22 (a) PAYMENTS AND ADMINISTRATION IN ACCORDANCE

23 WITH PLAN.—Notwithstanding any other law, any benefit

24 that is provided under a covered Federal assistance pro25 gram included in an approved local flexibility plan shall
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1 be paid and administered in the manner specified in the

2 approved local flexibility plan.

3 (b) WAIVER OF REQUIREMENTS.—(1) Notwithstand4 ing any other law and subject to paragraphs (2) and (3),

5 the Community Enterprise Board may waive any require6 ment applicable under Federal law to the administration

7 of, or provision of benefits under, any covered Federal as8 sistance program included in an approved local flexibility

9 plan, if that waiver is—

10 (A) reasonably necessary for the implementation

11 of the plan; and

12 (B) approved by a majority of members of the

13 Community Enterprise Board.

14 (2) The Community Enterprise Board may not waive

15 a requirement under this subsection unless the Board finds

16 that waiver of the requirement shall not result in a quali17 tative reduction in services or benefits for any individual

18 or family that is eligible for benefits under a covered Fed19 eral assistance program.

20 (3) The Community Enterprise Board may not waive

21 any requirement under this subsection—

22 (A) that enforces any constitutional or statutory

23 right of an individual, including any right under—

24 (i) title VI of the Civil Rights Act of 1964

25 (42 U.S.C. 2000d et seq.);
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1 (ii) section 504 of the Rehabilitation Act of

2 1973 (29 U.S.C. 701 et seq.);

3 (iii) title IX of the Education Amendments

4 of 1972 (86 Stat. 373 et seq.);

5 (iv) the Age Discrimination Act of 1975 (42

6 U.S.C. 6101 et seq.); or

7 (v) the Americans with Disabilities Act of

8 1990;

9 (B) for payment of a non-Federal share of fund10 ing of an activity under a covered Federal assistance

11 program; or

12 (C) for grants received on a maintenance of ef13 fort basis.

14 (c) SPECIAL ASSISTANCE.—To the extent permitted by

15 law, the head of each Federal agency shall seek to provide

16 special assistance to a local government or qualified organi17 zation to support implementation of an approved local

18 flexibility plan, including expedited processing, priority

19 funding, and technical assistance.

20 (d) EVALUATION AND TERMINATION.—(1) A local gov21 ernment, in accordance with regulations issued by the Com22 munity Enterprise Board, shall—

23 (A) submit such reports on and cooperate in such

24 audits of the implementation of its approved local

25 flexibility plan; and
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1 (B) periodically evaluate the effect implementa2 tion of the plan has had on—

3 (i) individuals who receive benefits under

4 the plan;

5 (ii) communities in which those individuals

6 live; and

7 (iii) costs of administering covered Federal

8 assistance programs included in the plan.

9 (2) No later than 90 days after the end of the 1-year

10 period beginning on the date of the approval by the Commu11 nity Enterprise Board of an approved local flexibility plan

12 of a local government, and annually thereafter, the local

13 government shall submit to the Community Enterprise

14 Board a report on the principal activities and achievements

15 under the plan during the period covered by the report,

16 comparing those achievements to the goals and performance

17 criteria included in the plan under section 1107(c)(3).

18 (3)(A) If the Community Enterprise Board, after con19 sultation with the head of each Federal agency responsible

20 for administering a covered Federal assistance program in21 cluded in an approved local flexibility plan of a local gov22 ernment, determines—

23 (i) that the goals and performance criteria in24 cluded in the plan under section 1107(c)(3) have not

25 been met; and
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1 (ii) after considering any experiences gained in

2 implementation of the plan, that those goals and cri3 teria are sound;

4 the Community Enterprise Board may terminate the effec5 tiveness of the plan.

6 (B) In terminating the effectiveness of an approved

7 local flexibility plan under this paragraph, the Community

8 Enterprise Board shall allow a reasonable period of time

9 for appropriate Federal, State, and local agencies and

10 qualified organizations to resume administration of Federal

11 programs that are covered Federal assistance programs in12 cluded in the plan.

13 (e) FINAL REPORT; EXTENSION OF PLANS.—(1) No

14 later than 45 days after the end of the effective period of

15 an approved local flexibility plan of a local government,

16 or at any time that the local government determines that

17 the plan has demonstrated its worth, the local government

18 shall submit to the Community Enterprise Board a final

19 report on its implementation of the plan, including a full

20 evaluation of the successes and shortcomings of the plan and

21 the effects of that implementation on individuals who re22 ceive benefits under those programs.

23 (2) The Community Enterprise Board may extend the

24 effective period of an approved local flexibility plan for such
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1 period as may be appropriate, based on the report of a local

2 government under paragraph (1).

3 SEC. 1110. COMMUNITY ADVISORY COMMITTEES.

4 (a) ESTABLISHMENT.—A local government that ap5 plies for approval of a local flexibility plan under this title

6 shall establish a community advisory committee in accord7 ance with this section.

8 (b) FUNCTIONS.—A community advisory committee

9 shall advise a local government in the development and im10 plementation of its local flexibility plan, including advice

11 with respect to—

12 (1) conducting public hearings;

13 (2) representing the interest of low income indi14 viduals and families; and

15 (3) reviewing and commenting on all community

16 policies, programs, and actions under the plan which

17 affect low income individuals and families, with the

18 purpose of ensuring maximum coordination and re19 sponsiveness of the plan in providing benefits under

20 the plan to those individuals and families.

21 (c) MEMBERSHIP.—The membership of a community

22 advisory committee shall—

23 (1) consist of—

24 (A) low income individuals, who shall—
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1 (i) comprise at least one-third of the

2 membership; and

3 (ii) include minority individuals who

4 are participants or who qualify to partici5 pate in eligible Federal assistance pro6 grams;

7 (B) representatives of low income individ8 uals and families;

9 (C) persons with leadership experience in

10 the private and voluntary sectors;

11 (D) local elected officials;

12 (E) representatives of participating quali13 fied organizations; and

14 (F) the general public; and

15 (2) include individuals and representatives of

16 community organizations who shall help to enhance

17 the leadership role of the local government in develop18 ing a local flexibility plan.

19 (d) OPPORTUNITY FOR REVIEW AND COMMENT BY

20 COMMITTEE.—Before submitting an application for ap21 proval of a final proposed local flexibility plan, a local gov22 ernment shall submit the final proposed plan for review and

23 comment by a community advisory committee established

24 by the local government.
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1 (e) COMMITTEE REVIEW OF REPORTS.—Before sub2 mitting annual or final reports on an approved assistance

3 plan, a local government or private nonprofit organization

4 shall submit the report for review and comment to the com5 munity advisory committee.

6 SEC. 1111. TECHNICAL AND OTHER ASSISTANCE.

7 (a) TECHNICAL ASSISTANCE.—(1) The Community

8 Enterprise Board may provide, or direct that the head of

9 a Federal agency provide, technical assistance to a local

10 government or qualified organization in developing infor11 mation necessary for the design or implementation of a

12 local flexibility plan.

13 (2) Assistance may be provided under this subsection

14 if a local government makes a request that includes, in ac15 cordance with requirements established by the Community

16 Enterprise Board—

17 (A) a description of the local flexibility plan the

18 local government proposes to develop;

19 (B) a description of the groups of individuals to

20 whom benefits shall be provided under covered Federal

21 assistance programs included in the plan; and

22 (C) such assurances as the Community Enter23 prise Board may require that—

24 (i) in the development of the application to

25 be submitted under this title for approval of the
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1 plan, the local government shall provide ade2 quate opportunities to participate to—

3 (I) low income individuals and fami4 lies that shall receive benefits under covered

5 Federal assistance programs included in the

6 plan; and

7 (II) governmental agencies that admin8 ister those programs; and

9 (ii) the plan shall be developed after consid10 ering fully—

11 (I) needs expressed by those individuals

12 and families;

13 (II) community priorities; and

14 (III) available governmental resources

15 in the geographic area to which the plan

16 shall apply.

17 (b) DETAILS TO BOARD.—At the request of the Chair18 man of the Community Enterprise Board and with the ap19 proval of an agency head who is a member of the Board,

20 agency staff may be detailed to the Community Enterprise

21 Board on a nonreimbursable basis.

22 SEC. 1112. COMMUNITY ENTERPRISE BOARD.

23 (a) FUNCTIONS.—The Community Enterprise Board

24 shall—
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1 (1) receive, review, and approve or disapprove

2 local flexibility plans for which approval is sought

3 under this title;

4 (2) upon request from an applicant for such ap5 proval, direct the head of an agency that administers

6 a covered Federal assistance program under which

7 substantial Federal assistance would be provided

8 under the plan to provide technical assistance to the

9 applicant;

10 (3) monitor the progress of development and im11 plementation of local flexibility plans;

12 (4) perform such other functions as are assigned

13 to the Community Enterprise Board by this title; and

14 (5) issue regulations to implement this title

15 within 180 days after the date of its enactment.

16 (b) REPORTS.—No less than 18 months after the date

17 of the enactment of this Act, and annually thereafter, the

18 Community Enterprise Board shall submit a report on the

19 5 Federal regulations that are most frequently waived by

20 the Community Enterprise Board for local governments

21 with approved local flexibility plans to the President and

22 the Congress. The President shall review the report and de23 termine whether to amend or terminate such Federal regu24 lations.
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1 SEC. 1113. TERMINATION AND REPEAL; REPORT.

2 (a) TERMINATION AND REPEAL.—This title is repealed

3 on the date that is 5 years after the date of the enactment

4 of this Act.

5 (b) REPORT.—No later than 4 years after the date of

6 the enactment of this Act, the Comptroller General of the

7 United States shall submit to the Congress, a report that—

8 (1) describes the extent to which local govern9 ments have established and implemented approved

10 local flexibility plans;

11 (2) evaluates the effectiveness of covered Federal

12 assistance programs included in approved local flexi13 bility plans; and

14 (3) includes recommendations with respect to

15 continuing local flexibility.

16 TITLE XII—HERO ACT

17 SEC. 1201. SHORT TITLE.

18 This title may be cited as the ‘‘Heroic Efforts to Rescue

19 Others Act’’ (HERO Act).

20 SEC. 1202. FINDINGS.

21 Congress finds that—

22 (1) existing Occupational Safety and Health Ad23 ministration regulations require the issuance of a ci24 tation to an employer in a circumstance in which an

25 employee of such employer has voluntarily acted in a
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1 heroic manner to rescue individuals from imminent

2 harm during work hours;

3 (2) application of such regulations to employers

4 in such circumstance causes hardships to those em5 ployers who are responsible for employees who per6 form heroic acts to save individuals from imminent

7 harm;

8 (3) strict application of such regulations in such

9 circumstance penalizes employers as a result of the

10 time lost and legal fees incurred to defend against

11 such citations; and

12 (4) in order to save employers the cost of unnec13 essary enforcement an exemption from the issuance of

14 a citation to an employer under certain situations re15 lated to such circumstance is appropriate.

16 SEC. 1203. CITATIONS.

17 Section 9 of the Occupational Safety and Health Act

18 (29 U.S.C. 658) is amended by adding at the end the follow19 ing new subsection:

20 ‘‘(d)(1) No citation may be issued under this section

21 for a rescue activity by an employer’s employee of an indi22 vidual in imminent harm unless—

23 ‘‘(A)(i) such employee is designated or assigned

24 by the employee’s employer with responsibility to per25 form or assist in rescue operations; and
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1 ‘‘(ii) the employer fails to provide protection of

2 the safety and health of such employee, including fail3 ing to provide appropriate training and rescue equip4 ment;

5 ‘‘(B)(i) such employee is directed by the employ6 ee’s employer to perform rescue activities in the course

7 of carrying out the employee’s job duties; and

8 ‘‘(ii) the employer fails to provide protection of

9 the safety and health of such employee, including fail10 ing to provide appropriate training and rescue equip11 ment; or

12 ‘‘(C)(i) such employee—

13 ‘‘(I) is employed in a workplace that re14 quires such employee to carry out duties that are

15 directly related to a workplace operation where

16 the likelihood of life-threatening accidents is fore17 seeable, such as a workplace operation where em18 ployees are located in confined spaces or trench19 es, handle hazardous waste, respond to emer20 gency situations, perform excavations, or per21 form construction over water;

22 ‘‘(II) has not been designated or assigned to

23 perform or assist in rescue operations; and

24 ‘‘(III) voluntarily elects to rescue such an

25 individual; and
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1 ‘‘(ii) the employer has failed to instruct employ2 ees not designated or assigned to perform or assist in

3 rescue operations—

4 ‘‘(I) of the arrangements for rescue;

5 ‘‘(II) not to attempt rescue; and

6 ‘‘(III) of the hazards of attempting rescue

7 without adequate training or equipment.

8 ‘‘(2) For purposes of this subsection, the term ‘immi9 nent harm’ means the existence of any condition or practice

10 that could reasonably be expected to cause death or serious

11 physical harm before such condition or practice can be

12 abated.’’.

13 TITLE XIII—MISCELLANEOUS

14 PROVISIONS

15 SEC. 1301. ECONOMIC AND EMPLOYMENT IMPACT ACT.

16 (a) SHORT TITLE.—This section may be cited as the

17 ‘‘Economic and Employment Impact Act’’.

18 (b) FINDINGS AND PURPOSES.—

19 (1) FINDINGS.—The Congress finds that—

20 (A) compliance with Federal regulations is

21 estimated to cost the private sector and State

22 and local governments as much as

23 $850,000,000,000 a year;

24 (B) excessive Federal regulation and man25 dates increase the cost of doing business and thus
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1 hinder economic growth and employment oppor2 tunities;

3 (C) State and local governments are forced

4 to absorb the cost of unfunded Federal mandates;

5 and

6 (D) in addition to budget and deficit esti7 mates, Congress and the executive branch deci8 sion makers need to be aware of regulatory cost

9 impacts of proposed Federal actions on the pri10 vate sector and State, local, and tribal govern11 ments.

12 (2) PURPOSES.—The purposes of this section

13 are—

14 (A) to ensure that the people of United

15 States are fully apprised of the impact of Fed16 eral legislative and regulatory activity on eco17 nomic growth and employment;

18 (B) to require both the Congress and the ex19 ecutive branch to acknowledge and to take re20 sponsibility for the fiscal and economic effects of

21 legislative and regulatory actions and activities;

22 (C) to provide a means to ensure that con23 gressional and executive branch action are fo24 cused on enhancing economic growth and provid-
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1 ing increased job opportunities for the people of

2 United States; and

3 (D) to protect against congressional or exec4 utive branch actions which hinder economic

5 growth or eliminate jobs for the people of United

6 States.

7 (c) ECONOMIC AND EMPLOYMENT IMPACT STATE8 MENTS FOR LEGISLATION.—

9 (1) PREPARATION.—The Director of the Congres10 sional Budget Office (referred to as the ‘‘Director’’)

11 shall prepare an economic and employment impact

12 statement, as described in paragraph (2), to accom13 pany each bill or joint resolution reported by any

14 committee (except the Committee on Appropriations)

15 of the House of Representatives or the Senate or con16 sidered on the floor of either House.

17 (2) CONTENTS.—The economic and employment

18 impact statement required by paragraph (1) shall in19 clude the following:

20 (A) An estimate of the numbers of individ21 uals and businesses who would be regulated by

22 the bill or joint resolution and a determination

23 of the groups and classes of such individuals and

24 businesses;
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1 (B) A determination of the economic impact

2 of such regulation on individuals, consumers,

3 and businesses affected.

4 (C)(i) An estimate of the costs which would

5 be incurred by the private sector in carrying out

6 or complying with such bill or joint resolution in

7 the fiscal year in which it is to become effective,

8 and in each of the 4 fiscal years following such

9 fiscal year, together with the basis for each such

10 estimate.

11 (ii) Estimates required by this subpara12 graph shall include specific data on costs im13 posed on groups and classes of individuals and

14 businesses, including small business and consum15 ers, and employment impacts on those individ16 uals and businesses.

17 (D) An estimate of the costs that would be

18 incurred by State and local governments, which

19 shall include—

20 (i) the estimates required by section

21 403 of the Congressional Budget Act of

22 1974; and

23 (ii) an evaluation of the extent of the

24 costs of the Federal mandates arising from

25 such bill or joint resolution in comparison
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1 with funding assistance provided by the

2 Federal Government to address the costs of

3 complying with such mandates.

4 (3) REPORT NOT AVAILABLE.—If compliance

5 with the requirements of paragraph (1) is impractica6 ble, the Director shall submit a statement setting forth

7 the reasons for noncompliance.

8 (4) STATEMENT TO ACCOMPANY COMMITTEE RE9 PORTS.—The economic and employment impact state10 ment required by this subsection shall accompany

11 each bill or joint resolution reported or otherwise con12 sidered on the floor of either House. Such statement

13 shall be printed in the committee report upon timely

14 submission to the committee. If not timely filed or

15 otherwise unavailable for publication in the commit16 tee report, the economic and regulatory statement

17 shall be published in the Congressional Record not

18 less than 2 calendar days prior to any floor consider19 ation of a bill or joint resolution subject to the provi20 sions of this subsection by either House.

21 (5) COMMITTEE STATEMENTS OPTIONAL.—Noth22 ing in this subsection shall be construed to modify or

23 otherwise affect the requirements of paragraph 11(b)

24 of rule XXVI of the Standing Rules of the Senate, re-
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1 garding preparation of an evaluation of regulatory

2 impact.

3 (d) ECONOMIC AND EMPLOYMENT IMPACT STATEMENT

4 FOR EXECUTIVE BRANCH REGULATIONS.—

5 (1) PREPARATION.—Each Federal department or

6 executive branch agency shall prepare an economic

7 and employment impact statement, as described in

8 paragraph (2), to accompany regulatory actions.

9 (2) CONTENTS.—The economic and employment

10 impact statement required by paragraph (1) shall in11 clude the following:

12 (A) An estimate of the numbers of individ13 uals and businesses who would be regulated by

14 the regulatory action and a determination of the

15 groups and classes of such individuals and busi16 nesses.

17 (B) A determination of the economic impact

18 of such regulation on individuals, consumers,

19 and businesses affected.

20 (C)(i) An estimate of the costs which would

21 be incurred by the private sector in carrying out

22 or complying with such regulatory action in the

23 fiscal year in which it is to become effective and

24 in each of the 4 fiscal years following such fiscal
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1 year, together with the basis for each such esti2 mate;

3 (ii) The estimate required by this subpara4 graph shall include specific data on costs on

5 groups and classes of individuals and businesses,

6 including small business and consumers, and

7 employment impacts on those individuals and

8 businesses.

9 (D) An estimate of the costs that would be

10 incurred by State and local governments, which

11 shall include—

12 (i) an estimate of cost which would be

13 incurred by State and local governments in

14 carrying out or complying with the regu15 latory action in the fiscal year in which it

16 is to become effective and in each of the 4

17 fiscal years following such fiscal year, to18 gether with the basis for such estimate;

19 (ii) a comparison of the estimates of

20 costs described in clause (i), with any avail21 able estimates of costs made by any Federal

22 or State agency;

23 (iii) if the agency determines that the

24 regulatory action is likely to result in an25 nual cost to State and local governments of
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1 $200,000,000 or more, or is likely to have

2 exceptional fiscal consequences for a geo3 graphic region or a particular level of gov4 ernment, a statement by the agency detail5 ing such results or consequences; and

6 (iv) an evaluation of the extent of the

7 costs of the Federal mandates arising from

8 the regulatory action in comparison with

9 funding assistance provided by the Federal

10 Government to address the costs of comply11 ing with such mandates.

12 (4) REPORT NOT AVAILABLE.—If compliance

13 with the requirements of paragraph (1) is impractica14 ble, the agency or department shall submit a state15 ment setting forth the reasons for noncompliance.

16 (5) STATEMENT TO ACCOMPANY FEDERAL REGU17 LATORY ACTIONS.—The economic and employment

18 impact statement with respect to a regulatory action

19 required by this subsection shall be published in the

20 Federal Register together with the publication of such

21 regulatory action. If the regulatory action is not pub22 lished in the Federal Register, the economic and em23 ployment impact statement shall be made available to

24 the public in a timely manner.
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1 (6) DEFINITION OF ‘‘REGULATORY ACTION’’.—

2 For purposes of this subsection, the term ‘‘regulatory

3 action’’ means any substantive action by a Federal

4 agency (required to be or customarily published in the

5 Federal Register) that promulgates or is expected to

6 lead to the promulgation of a final rule or regulation,

7 including notices of inquiry, advance notices of pro8 posed rulemaking, notices of proposed rulemaking, in9 terim final rules, and final rules and regulations.

10 (e) PROVISION FOR NATIONAL SECURITY EMERGENCY

11 WAIVER.—

12 (1) CONGRESSIONAL ECONOMIC IMPACT STATE13 MENTS.—The Congress may waive the requirements of

14 subsection (c) at any time in which a declaration of

15 war is in effect, or in response to a national security

16 emergency at the request of the President.

17 (2) EXECUTIVE REGULATIONS ECONOMIC IMPACT

18 STATEMENTS.—The President may waive the require19 ments of subsection (d) at any time in which a dec20 laration of war is in effect, or in response to a na21 tional security emergency as determined by the Presi22 dent in consultation with Congress.

23 (f) EFFECTIVE DATE.—This section shall take effect 30

24 days after the date enactment of this Act.
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1 SEC. 1302. URBAN UNIVERSITY BUSINESS INITIATIVE

2 GRANTS.

3 (a) URBAN UNIVERSITY BUSINESS INITIATIVE

4 GRANTS.—

5 (1) AUTHORIZATION.—The Secretary of Com6 merce (hereafter in this section referred to as the

7 ‘‘Secretary’’) is authorized to make grants to eligible

8 institutions in accordance with this section.

9 (2) APPLICATION.—

10 (A) IN GENERAL.—An eligible institution

11 seeking assistance under this section shall submit

12 to the Secretary an application at such time, in

13 such form, and containing or accompanied by

14 such information and assurances as the Sec15 retary may require by regulation.

16 (B) CONTENTS.—Except as provided in sub17 paragraph (C), each application submitted pur18 suant to subparagraph (A) shall include—

19 (i) a description of the activities and

20 services for which assistance is sought;

21 (ii) evidence of coordination with any

22 small business development centers in exist23 ence in the community; and

24 (iii) documentation of the formation of

25 a consortium that includes, in addition to
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1 eligible institutions, one or more of the fol2 lowing entities:

3 (I) A nonprofit organization.

4 (II) A business or other employer.

5 (C) WAIVER.—The Secretary may waive the

6 requirements of subparagraph (B)(iii) for any

7 applicant who can demonstrate to the satisfac8 tion of the Secretary that the applicant has de9 vised an integrated and coordinated plan that

10 otherwise meets the requirements of this section.

11 (3) SELECTION PROCEDURES.—Not later than

12 120 days after the date of enactment of this section,

13 the Secretary shall, by regulation, develop a formal

14 procedure for the submission of applications under

15 this section and shall publish in the Federal Register

16 an announcement of that procedure and the availabil17 ity of funds under this section.

18 (b) AUTHORIZED ACTIVITIES.—

19 (1) IN GENERAL.—Funds provided under this

20 section shall be used to design and implement pro21 grams to assist businesses, especially those in lower

22 income urban communities, to become more produc23 tive and able to compete in the global marketplace.

24 (2) SPECIFIC AUTHORIZED ACTIVITIES.—Activi25 ties conducted with funds made available under this
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1 section may include research on, or planning and im2 plementation of technology transfer, technical train3 ing, the delivery of services, or technical assistance

4 in—

5 (A) business development;

6 (B) business creation;

7 (C) business expansion; and

8 (D) human resource management.

9 (c) PEER REVIEW PANEL.—

10 (1) ESTABLISHMENT.—Not later than 90 days

11 after the date on which the Secretary publishes the

12 announcement in the Federal Register in accordance

13 with subsection (a)(3), the Secretary shall appoint a

14 peer review panel (hereafter in this section referred to

15 as the ‘‘panel’’).

16 (2) MEMBERSHIP.—In appointing the panel

17 under paragraph (1), the Secretary shall consult with

18 officials of other Federal agencies and with non-Fed19 eral organizations in order to ensure that—

20 (A) the panel membership is geographically

21 balanced; and

22 (B) the panel is composed of representatives

23 from public and private institutions of higher

24 education, labor, business, and nonprofit organi-
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1 zations having expertise in business development

2 in lower income urban communities.

3 (3) DUTIES.—The panel shall—

4 (A) review applications submitted under

5 this section; and

6 (B) make recommendations to the Secretary

7 concerning the selection of grant recipients.

8 (d) DISBURSEMENT OF FUNDS.—

9 (1) LIMITATION ON AMOUNT.—The Secretary

10 shall not provide assistance under this section to any

11 recipient which exceeds $400,000 during any 1-year

12 period.

13 (2) EQUITABLE GEOGRAPHIC DISTRIBUTION.—

14 The Secretary shall award grants under this section

15 in a manner that achieves equitable geographic dis16 tribution of such grants.

17 (e) DEFINITIONS.—For purposes of this section, the fol18 lowing definitions shall apply:

19 (1) LOWER INCOME URBAN COMMUNITY.—The

20 term ‘‘lower income urban community’’ means an

21 urban area in which the percent of residents living

22 below the Federal poverty level is not less than 115

23 percent of the statewide average.

24 (2) URBAN AREA.—
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1 (A) IN GENERAL.—Except as provided in

2 subparagraph (B), the term ‘‘urban area’’ means

3 a primary metropolitan statistical area of the

4 United States Department of Commerce, Bureau

5 of the Census.

6 (B) EXCEPTION.—With respect to a State

7 that does not contain an urban area, as defined

8 in subparagraph (A), the Secretary shall des9 ignate 1 area in the State as an urban area for

10 purposes of this section.

11 (3) ELIGIBLE INSTITUTION.—

12 (A) INSTITUTION OR CONSORTIUM.—The

13 term ‘‘eligible institution’’ means a nonprofit in14 stitution of higher education that meets the re15 quirements of subparagraph (B), or a consor16 tium of such institutions, any 1 of which meets

17 the requirements of subparagraph (B).

18 (B) REQUIREMENTS.—An institution meets

19 the requirements of this subparagraph if the in20 stitution—

21 (i) is located in an urban area;

22 (ii) draws a substantial portion of its

23 undergraduate students from the urban area

24 in which such institution is located, or from

25 contiguous areas;
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1 (iii) carries out programs to make

2 postsecondary educational opportunities

3 more accessible to residents of such urban

4 area, or contiguous areas;

5 (iv) has the present capacity to provide

6 resources responsive to the needs and prior7 ities of such urban area and contiguous

8 areas;

9 (v) offers a range of professional, tech10 nical, or graduate programs sufficient to

11 sustain the capacity of such institution to

12 provide such resources;

13 (vi) has demonstrated and sustained a

14 sense of responsibility to such urban area

15 and contiguous areas and the people of such

16 areas; and

17 (vii) has a school of business accredited

18 by the American Assembly of Collegiate

19 Schools of Business (or similar organiza20 tion) with faculty experienced in conducting

21 research on issues of immediate concern to

22 small and emerging businesses.

23 (f) AUTHORIZATION OF APPROPRIATIONS.—There are

24 authorized to be appropriated to carry out this section—

25 (1) $10,000,000, for fiscal year 1995; and
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1 (2) such sums as may be necessary, for fiscal

2 years 1996, 1997, 1998, and 1999.

3 SEC. 1303. PROHIBITION ON SOLICITATION OF CAMPAIGN

4 CONTRIBUTIONS BY PERSONS AWARDING

5 CONTRACTS.

6 (a) IN GENERAL.—Chapter 29 of title 18, United

7 States Code, is amended by adding at the end the following

8 new section:

9 ‘‘§ 610. Solicitation of political contributions by per10 sons awarding contracts

11 ‘‘Any person who awards any contract or grant under

12 any provision of, or any amendment made by, the National

13 Competitiveness Act of 1994 who, during the 5-year period

14 beginning on the date the contract or grant is awarded,

15 knowingly solicits a political contribution (within the

16 meaning of section 7322(3) of title 5, United States Code)

17 from any person who was awarded such contract or grant

18 (or any owner, officer, employee, or agent thereof) shall be

19 imprisoned for 1 year or fined not more than $10,000, or

20 both.’’.
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1 (b) CONFORMING AMENDMENT.—The table of sections

2 for chapter 29 of title 18, United States Code, is amended

3 by adding at the end the following new item:

‘‘610. Solicitation of political contributions by persons awarding contracts.’’.

Attest:

Secretary.
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