103D CONGRESS

2D SESSION H. R. 820

AMENDMENT

March 17 (legislative day, February 22), 1994

Ordered to be printed as passed
March 17 (legislative day, February 22), 1994

Ordered to be printed as passed

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:
2

HR 820 PP

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.

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.
3

HR 820 PP

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.

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.
4

HR 820 PP

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.

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 man-
5

HR 820 PP

1 ufacture of products based on those technologies, will

2 lead in economic growth, employment, and high liv3 ing standards.

4 (2) While the United States remains the world

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

6 well as it should in manufacturing new products

7 based on these innovations. This lag and the unprece8 dented competitive challenge that the Nation has faced

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

10 living standards, and employment opportunities.

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

12 technology are critical for economic competitiveness

13 through the first decade of the next century, but the

14 United States Government must pursue a comprehen15 sive strategy to ensure that the appropriate research,

16 development, and applications activities and other re17 forms occur so these technologies are readily available

18 to United States manufacturers for incorporation into

19 products made in the United States.

20 (4) Maintaining a highly competitive manufac21 turing base in the United States is essential for eco22 nomic prosperity and national welfare and requires

23 continuous development and adoption of advanced

24 manufacturing technologies that will enable United

25 States manufacturers to develop innovative products
6

HR 820 PP

1 rapidly and manufacture goods of the highest quality

2 at competitive prices.

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

4 in the development, application, and manufacture of

5 new technologies, the Federal Government should—

6 (A) assist industry in the development of

7 high-risk, long-term precommercial technologies

8 which promise large economic benefits for the

9 Nation;

10 (B) support industry-led efforts to develop

11 and refine advanced manufacturing technologies,

12 including technologies which improve productiv13 ity and quality and which build upon and en14 hance employee skills;

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

16 worker organizations, and technical and profes17 sional societies to help small- and medium-sized

18 manufacturers throughout the Nation to adopt

19 best current manufacturing technologies and

20 practices, to improve worker skills, to establish

21 high-performance work organizations, and to

22 prepare, as appropriate, to adopt the advanced

23 computer-controlled manufacturing technologies

24 of the twenty-first century; and
7

HR 820 PP

1 (D) cooperate with industry and academia

2 to help create an advanced information infra3 structure for the United States.

4 (6) In working with industry to promote the

5 technological leadership and economic growth of the

6 United States, the Federal Government also has a re7 sponsibility to consult with business and labor leaders

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

9 to monitor technological trends, production process

10 trends, and technology targeting efforts in other na11 tions, and generally to ensure that Federal technology

12 and industrial modernization programs help United

13 States industry to remain competitive and create

14 good domestic jobs.

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

16 century should be developed incorporating the values

17 of sustainable development, including low material

18 use, safety, recyclability, and minimal pollution.

19 (8) The Department of Commerce, and particu20 larly its Technology Administration and National In21 stitute of Standards and Technology, can effectively

22 assist industry to speed the development and utiliza23 tion of new technologies, improve and modernize

24 manufacturing, adopt new methods of production,

25 and ensure a growing and healthy national industrial
8

HR 820 PP

1 base and good manufacturing jobs. To promote the

2 long-term economic growth of the Nation, these De3 partment of Commerce programs should be strength4 ened and expanded.

5 SEC. 103. PURPOSES.

6 The purposes of this Act are to—

7 (1) strengthen and expand the ability of Federal

8 technology programs, particularly those of the Depart9 ment of Commerce, to support industry-led and State10 supported efforts to improve the technological capa11 bilities, manufacturing performance, information in12 frastructure, and employment opportunities of the

13 United States;

14 (2) promote and facilitate, particularly through

15 the Advanced Technology Program of the Department

16 of Commerce, the creation, development, and adoption

17 of technologies that will contribute significantly to

18 United States economic competitiveness, employment,

19 high quality jobs, and prosperity;

20 (3) develop a nationwide network of sources of

21 technological and industrial modernization advice for

22 manufacturers, particularly small and medium-sized

23 firms, and provide high quality, current information

24 to that network;
9

HR 820 PP

1 (4) encourage cooperation among Federal depart2 ments and agencies to help companies, managers, and

3 workers, in a coordinated fashion, to take full advan4 tage of advanced manufacturing technologies, to im5 prove productivity and quality, and adopt advanced

6 workplace practices which successfully integrate tech7 nology and employees;

8 (5) stimulate the flow of capital to business con9 cerns engaged principally in development or utiliza10 tion of critical technologies and other advanced man11 ufacturing technologies;

12 (6) ensure the widest possible application of

13 high-performance computing and high-speed

14 networking and aid United States industry to develop

15 an advanced national information infrastructure; and

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

17 National Institute of Standards and Technology.

18 SEC. 104. DEFINITIONS.

19 For purposes of this Act—

20 (1) the terms ‘‘advanced manufacturing tech21 nology’’, ‘‘advanced workplace practices’’, ‘‘modern

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

23 the meanings given such terms, respectively, in sec24 tion 4 of the Stevenson-Wydler Technology Innovation

25 Act of 1980, as amended by section 211(b) of this Act;
10

HR 820 PP

1 (2) the term ‘‘critical technologies’’ means tech2 nologies identified as critical technologies pursuant to

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

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

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

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

7 Institute;

8 (4) the term ‘‘Institute’’ means the National In9 stitute of Standards and Technology;

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

11 Commerce;

12 (6) the term ‘‘small business’’ has the meaning

13 given such term in the Small Business Act;

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

15 given that term in section 6603 of the Pollution Pre16 vention Act of 1990 (42 U.S.C. 13102);

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

18 States, the District of Columbia, the Commonwealth

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

20 Samoa, the Commonwealth of the Northern Mariana

21 Islands, or any other territory or possession of the

22 United States;

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

24 Under Secretary of Commerce for Technology; and
11

HR 820 PP

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

2 States, the District of Columbia, the Commonwealth

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

4 Samoa, the Commonwealth of the Northern Mariana

5 Islands, and any other territory or possession of the

6 United States.

7 SEC. 105. OVERALL AUTHORIZATION LIMIT.

8 Notwithstanding any other provision of this Act, the

9 total amount authorized to be appropriated under this Act

10 shall not exceed $1,900,000,000.

11 TITLE II—MANUFACTURING

12 SEC. 201. SHORT TITLE.

13 This title may be cited as the ‘‘Manufacturing Tech14 nology and Extension Act of 1994’’.

15 Subtitle A—Manufacturing

16 Technology and Extension

17 SEC. 211. MANUFACTURING AMENDMENTS TO THE STEVEN18 SON-WYDLER TECHNOLOGY INNOVATION

19 ACT.

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

21 Innovation Act of 1980 (15 U.S.C. 3701 et seq.), as amend22 ed by section 213 of this Act, is further amended by adding

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

24 Act) the following new sections:
12

HR 820 PP

1 ‘‘SEC. 102. MANUFACTURING TECHNOLOGY.

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

3 it is the policy of the United States that—

4 ‘‘(1) Federal agencies, particularly the Depart5 ment of Commerce, shall work with manufacturers in

6 the United States and labor to ensure that within 10

7 years of the date of enactment of the National Com8 petitiveness Act of 1994 the United States is second

9 to no other nation in the development, deployment,

10 and use of advanced manufacturing technologies;

11 ‘‘(2) all the major Federal research and develop12 ment agencies shall place a high priority on the devel13 opment and deployment of skill-based and advanced

14 manufacturing technologies, and shall work closely

15 with manufacturers in the United States and labor

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

17 those technologies; and

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

19 existing and entry workforce, and the development of

20 new organizational and managerial approaches, are

21 integral parts of successfully deploying advanced

22 manufacturing technologies and related technologies,

23 advanced workplace practices should be developed and

24 deployed simultaneously and in a coordinated fashion

25 with the development and deployment of advanced

26 manufacturing technologies.
13

HR 820 PP

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

2 The Department of Commerce, consistent with the policy

3 declared in subsection (a), shall have primary responsibil4 ity in the Federal Government for commercial and indus5 trial civilian technology and shall—

6 ‘‘(1) through the activities of the Technology Ad7 ministration, the Institute’s laboratories, and the Ad8 vanced Technology Program created under section 28

9 of the National Institute of Standards and Technology

10 Act (15 U.S.C. 278n), work with manufacturers in

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

12 other Federal departments and agencies to help de13 velop new generic advanced manufacturing tech14 nologies, including technologies which build upon and

15 enhance employee skills and technologies which facili16 tate flexibility, agility, and electronic integration in

17 manufacturing enterprises;

18 ‘‘(2) through the Manufacturing Extension Part19 nership established under section 24 of the National

20 Institute of Standards and Technology Act and

21 through other activities of the Department, assist the

22 States and the private sector to help manufacturers in

23 the United States, especially small and medium-sized

24 manufacturing enterprises, to adopt modern tech25 nologies and advanced workplace practices and, as
14

HR 820 PP

1 appropriate, advanced manufacturing technologies

2 and equipment;

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

4 departments and agencies, State and local govern5 ments, and educational institutions to—

6 ‘‘(A) help develop advanced workplace prac7 tices, improved supplier-customer relations,

8 manufacturing modernization and investment

9 justification strategies, and other steps which

10 would accelerate the development, deployment,

11 and use of advanced manufacturing technologies

12 by United States companies; and

13 ‘‘(B) evaluate foreign programs to modern14 ize manufacturing;

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

16 Government in working with industry and labor and

17 the States to develop advanced manufacturing tech18 nologies and to promote and assist the adoption and

19 use of modern technologies, advanced manufacturing

20 technologies, and management techniques throughout

21 the United States; and

22 ‘‘(5) through the Under Secretary, develop meas23 urements and coordinate with appropriate Federal

24 agencies to ensure that Federal research and develop-
15

HR 820 PP

1 ment expenditures are linked to the economic needs of

2 industry and the promotion of economic growth.

3 ‘‘SEC. 103. MANUFACTURING ADVISORY COMMITTEE.

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

5 Secretary shall establish a Manufacturing Advisory Com6 mittee (in this section referred to as the ‘Committee’), which

7 shall be chaired by the Secretary and which shall provide

8 advice to the Secretary and, as appropriate, to other Fed9 eral officials.

10 ‘‘(b) FUNCTIONS.—The Committee shall—

11 ‘‘(1) collect and analyze information on the

12 range of factors which determine the success of United

13 States-based manufacturing industries, and particu14 larly factors regarding the development of advanced

15 manufacturing technologies, the deployment of mod16 ern technologies, and the application of advanced

17 workplace practices;

18 ‘‘(2) identify areas where appropriate coopera19 tion between the Federal Government and industry

20 and labor, including Government support for indus21 try-led joint research and development ventures and

22 for manufacturing extension activities, would enhance

23 United States industrial competitiveness, and provide

24 advice and guidance for such cooperative efforts;
16

HR 820 PP

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

2 and practices are necessary to strengthen United

3 States-based manufacturing, particularly Federal

4 policies and practices regarding research budgets,

5 interagency coordination and initiatives, and tech6 nology transfer; and

7 ‘‘(4) generally develop recommendations for guid8 ing Federal agency and interagency activities related

9 to United States-based manufacturing.

10 ‘‘(c) MEMBERSHIP AND PROCEDURES.—(1) The Com11 mittee shall be composed of 16 members, of whom—

12 ‘‘(A) 6 members shall be the Secretary, the Direc13 tor of the Office of Science and Technology Policy, the

14 Secretary of Defense, the Secretary of Energy, the

15 Secretary of Labor, and the Director of the National

16 Science Foundation, or their designees; and

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

18 date of enactment of the National Competitiveness Act

19 of 1994, be appointed by the Secretary from the pri20 vate manufacturing industry, worker organizations,

21 technical and professional societies, State technology

22 agencies, and academia.

23 At least two of the members appointed under subparagraph

24 (B) shall be from small business.
17

HR 820 PP

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

2 Committee within 30 days after the appointment of mem3 bers is completed.

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

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

6 perform its functions.

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

8 a quorum for the transaction of business.

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

10 employees of the Federal Government, while attending meet11 ings of the Committee or otherwise performing duties of the

12 Committee while away from their homes or regular places

13 of business, shall be allowed travel expenses in accordance

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

15 Code.

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

17 the Department of Commerce Technology Advisory Board

18 and with other appropriate Federal advisory mechanisms

19 to ensure integrated Federal-private consideration of tech20 nology and manufacturing policies and programs.

21 ‘‘(d) SECRETARIAL DISCRETION.—Notwithstanding

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

23 the discretion to decide whether to establish the Committee

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

25 closer cooperation with industry. If the Secretary exercises
18

HR 820 PP

1 such discretion and establishes an alternative mechanism,

2 the Under Secretary shall make an effort to ensure the par3 ticipation of socially and economically disadvantaged indi4 viduals (within the meaning of section 8(a) (5) and (6) of

5 the Small Business Act, and including women) in the alter6 native mechanism.’’.

7 (b) ADDITIONAL DEFINITIONS.—Section 4 of the Ste8 venson-Wydler Technology Innovation Act of 1980 (15

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

10 new paragraphs:

11 ‘‘(14) ‘Advanced manufacturing technology’

12 means—

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

14 robots, automated process control equipment,

15 computerized flexible manufacturing systems, as16 sociated computer software, and other technology

17 for improving manufacturing and industrial

18 production of goods, including biotechnology

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

20 ‘‘(B) novel manufacturing techniques and

21 processes not previously generally available that

22 improve manufacturing quality, productivity,

23 and practices, including engineering design,

24 quality assurance, concurrent engineering, con25 tinuous process production technology, inventory
19

HR 820 PP

1 management, upgraded worker skills, commu2 nications with customers and suppliers, and pro3 motion of sustainable economic growth.

4 ‘‘(15) ‘Modern technology’ means the best avail5 able proven technology, techniques, and processes ap6 propriate to enhancing the productivity of manufac7 turers or to promoting sustainable economic growth.

8 ‘‘(16) ‘Advanced workplace practices’ means in9 novations in work organization and performance, in10 cluding high-performance workplace systems, flexible

11 production techniques, quality programs, continuous

12 improvement, concurrent engineering, close relations

13 between suppliers and customers, widely diffused deci14 sion-making and work teams, and effective integra15 tion of production technology, worker skills and train16 ing, and workplace organization.

17 ‘‘(17) ‘Sustainable economic growth’ means eco18 nomic growth that enhances the national quality of

19 life and preserves environmental integrity.’’.

20 SEC. 212. MANUFACTURING AMENDMENTS TO THE NA21 TIONAL INSTITUTE OF STANDARDS AND

22 TECHNOLOGY ACT.

23 (a) NATIONAL QUALITY LABORATORY; MANUFACTUR24 ING EXTENSION PARTNERSHIP.—The National Institute of
20

HR 820 PP

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

2 amended—

3 (1) by redesignating sections 29 through 31 as

4 sections 31 through 33, respectively;

5 (2) by redesignating sections 23 and 24 as sec6 tions 29 and 30, respectively; and

7 (3) by inserting after section 22 the following

8 new sections:

9 ‘‘NATIONAL QUALITY LABORATORY

10 ‘‘SEC. 23. A National Quality Laboratory is estab11 lished within the Institute, the purpose of which is to per12 form research and outreach activities to assist private sector

13 quality efforts and to serve as a mechanism by which com14 panies in the United States, universities and other inter15 ested parties, and the Institute can work together to advance

16 quality management programs and to share and, as appro17 priate, develop manufacturing best practices.

18 ‘‘MANUFACTURING EXTENSION PARTNERSHIP

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

20 a Manufacturing Extension Partnership (in this section re21 ferred to as the ‘Partnership’). The Secretary, acting

22 through the Under Secretary and the Director, shall imple23 ment and coordinate the Partnership in accordance with

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

25 The purpose of the Partnership is to link electronically and

26 strengthen the Nation’s manufacturing extension centers
21

HR 820 PP

1 and activities in order to assist manufacturers in the Unit2 ed States, especially small- and medium-sized companies,

3 to expand and accelerate the use of modern technologies,

4 and to accelerate the development and use of advanced man5 ufacturing technologies and advanced workplace practices.

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

7 the Department of Commerce, the States, manufacturers in

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

9 appropriate, other Federal agencies to provide a national

10 system of manufacturing extension centers and technical

11 services to United States companies, particularly small12 and medium-sized manufacturers. The Partnership shall

13 include—

14 ‘‘(1) Manufacturing Outreach Centers, as author15 ized under subsection (c);

16 ‘‘(2) Regional Centers for the Transfer of Manu17 facturing Technology and Local Manufacturing Of18 fices, as established under section 25, and the State

19 Technology Extension Program, as established under

20 section 26;

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

22 subsection (d) and the clearinghouse system developed

23 under subsection (e); and

24 ‘‘(4) such technology and manufacturing exten25 sion centers supported by other Federal departments
22

HR 820 PP

1 and agencies, States, industry, and nonprofit organi2 zations as the Secretary considers appropriate for in3 clusion in the Partnership.

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

5 actively engaged in technology or manufacturing extension

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

7 Manufacturing Outreach Centers. Eligible organizations

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

9 their extension programs, and their laboratories; small busi10 ness development centers; and appropriate programs run by

11 professional and technical societies, worker organizations,

12 industrial organizations, for-profit or nonprofit organiza13 tions, community development organizations, State univer14 sities and other universities, community colleges, and tech15 nical schools and colleges, including, where appropriate,

16 vendor-supported demonstrations of production applica17 tions.

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

19 Centers shall be to—

20 ‘‘(A) disseminate technical and information serv21 ices to manufacturers in the United States, particu22 larly small- and medium-sized companies; and

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

24 medium-sized manufacturers in the United States to
23

HR 820 PP

1 expand and accelerate the use of modern technologies

2 and advanced workplace practices.

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

4 of participation in a Manufacturing Outreach Center, in5 cluding qualifications of start-up programs as Manufactur6 ing Outreach Centers, and may provide financial assist7 ance, on a cost-shared basis and through competitive, merit8 based review processes, to nonprofit or government partici9 pants throughout the United States to enable them to estab10 lish a Manufacturing Outreach Center.

11 ‘‘(4) Any Regional Center for the Transfer of Manufac12 turing Technology may apply to the Secretary to establish

13 a Manufacturing Outreach Center, managed by or in co14 operation with such Regional Center, if the Manufacturing

15 Outreach Center would be located outside and would pri16 marily serve an area outside the effective service area of

17 such Regional Center. Funding for the establishment and

18 management of such Manufacturing Outreach Center may

19 be awarded to such Regional Center under this subsection,

20 notwithstanding the restrictions of paragraph (6).

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

22 a State where an applicant for financial assistance under

23 this subsection is operating or plans to operate, the appli24 cant shall demonstrate in its application that its proposal

25 is compatible with such State plan.
24

HR 820 PP

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

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

3 Manufacturing Technology, the Director shall, as appro4 priate, encourage the Manufacturing Outreach Center to co5 operate with the Regional Center in coordinating its pro6 posals and ongoing programs to serve manufacturers in the

7 region. Manufacturing Outreach Centers may not concur8 rently be designated as Regional Centers for the Transfer

9 of Manufacturing Technology under section 25.

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

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

12 may, subject to successful evaluation by the Institute, be re13 newed for additional periods, not to exceed 3 years each.

14 Such assistance may not at any time exceed 50 percent of

15 the operating costs and other costs of the Manufacturing

16 Outreach Center, as defined by regulation.

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

18 an instantaneous, interactive electronic communications

19 network (in this section referred to as the ‘outreach net20 work’) to serve the Partnership, to facilitate effective and

21 efficient interaction within it, and to permit the collection

22 and dissemination in electronic form, in a timely and accu23 rate manner, of information described in subsection (e). The

24 outreach network shall, wherever practicable, make use of

25 existing public and private computer networks, data bases,
25

HR 820 PP

1 and electronic bulletin boards. The design, configuration,

2 acquisition plan, and operating policies, including user fees

3 and appropriate electronic access for public and private in4 formation suppliers and users, of the outreach network shall

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

6 (h)(2).

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

8 network established under paragraph (1) shall be designed

9 and configured in a manner that will enable interoper10 ability with networks and technologies developed under the

11 National High-Performance Computing Program described

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

13 1991 (15 U.S.C. 5511). The Secretary shall also, as appro14 priate, coordinate activities under this subsection with the

15 relevant activities of other Federal agencies, particularly

16 the agile manufacturing/enterprise integration activities of

17 the Department of Defense.

18 ‘‘(e)(1) The Secretary, acting through the Under Sec19 retary, shall develop a clearinghouse system, using appro20 priate components of the Technology Administration and

21 other public and private sector information providers and

22 carriers, where appropriate, to—

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

24 appropriate to the purpose of the Partnership stated

25 in subsection (a), from all available Federal sources,
26

HR 820 PP

1 and where appropriate from other sources, providing

2 assistance where necessary in making such informa3 tion electronically available and compatible with the

4 outreach network established under subsection (d);

5 ‘‘(B) ensure ready access by manufacturers, gov6 ernmental agencies, and nonprofit organizations in

7 the United States to the most recent relevant available

8 such information and expertise;

9 ‘‘(C) ensure that common standards of inter10 connection are utilized by the outreach network and

11 the clearinghouse to allow maximum interoperability

12 and usership; and

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

14 users of the availability of such information.

15 ‘‘(2) The clearinghouse shall include information

16 available electronically regarding—

17 ‘‘(A) activities of Manufacturing Outreach Cen18 ters, Regional Centers for the Transfer of Manufactur19 ing Technology, the State Technology Extension Pro20 gram, and the users of the outreach network;

21 ‘‘(B) domestic and international standards from

22 the Institute and private sector organizations and

23 other export promotion information, including con24 formity assessment requirements and procedures;
27

HR 820 PP

1 ‘‘(C) the Malcolm Baldrige National Quality

2 Award program, and quality principles and stand3 ards;

4 ‘‘(D) manufacturing processes that minimize

5 waste and negative environmental impact;

6 ‘‘(E) advanced workplace practices;

7 ‘‘(F) federally funded technology development

8 and transfer programs;

9 ‘‘(G) responsibilities assigned to the Clearing10 house for State and Local Initiatives on Productivity,

11 Technology, and Innovation;

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

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

14 workers, that is available through trade and profes15 sional organizations, federally supported programs,

16 State resources, private industry, or other organiza17 tions; and

18 ‘‘(J) other subjects relevant to the ability of com19 panies to manufacture and sell competitive products

20 throughout the world.

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

22 Commerce shall take into consideration the following prin23 ciples:

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

25 provided for under subsection (d) shall be established
28

HR 820 PP

1 and operated through cooperation and co-funding

2 among Federal, State, and local governments, other

3 public and private contributors, and end users.

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

5 shall utilize and leverage, to the extent practicable, ex6 isting organizations, data bases, electronic networks,

7 facilities, and capabilities, and shall be designed to

8 complement rather than supplant State and local pro9 grams.

10 ‘‘(3) The Partnership should, to the extent prac11 ticable, involve key stakeholders at all levels in the

12 planning and governance of modernization strategies;

13 concentrate on assisting local clusters of firms; assist

14 rural as well as urban manufacturers; promote col15 laborative learning and cooperative action among

16 manufacturers; link industrial modernization pro17 grams tightly to existing and future Federal training

18 initiatives, including those for youth apprenticeship

19 programs and for assisting other workers; encourage

20 small firms to seek modernization services by working

21 with major manufacturers; encourage small firms, as

22 appropriate, to select manufacturing equipment and

23 practices which build upon and expand the skills of

24 their employees; identify and honor best practices by

25 firms and the programs that support them, including
29

HR 820 PP

1 both technology and workplace practices; provide

2 funding based on performance and ensure rigorous

3 evaluation of extension services; as appropriate, co4 ordinate Federal programs that support manufactur5 ing modernization; work with Federal, State, local,

6 and private organizations so that Manufacturing

7 Outreach Centers and Regional Centers for the Trans8 fer of Manufacturing Technology can provide referrals

9 to other important business services, such as assist10 ance with financing, training, and exporting, and

11 contribute to local business climates supportive of

12 high-performance manufacturing.

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

14 provided for under subsection (d) shall be subject to

15 all applicable provisions of law for the protection of

16 trade secrets and business confidential information.

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

18 the management structure and staffing of the Manu19 facturing Outreach Centers. The Partnership shall

20 strive for geographical balance and for balance be21 tween urban and rural recipients, with the ultimate

22 goal of access for all United States manufacturers.

23 ‘‘(6) Manufacturing Outreach Centers should

24 have the capability to deliver outreach services di25 rectly to manufacturers; actively work with, rather
30

HR 820 PP

1 than supplant, the private sector; help firms assess

2 needs regarding technology, workplace practices, and

3 training; and to the extent practicable, maximize the

4 exposure of United States manufacturers to dem5 onstrations of modern technologies in use.

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

7 where possible, on the deployment of flexible manufac8 turing technologies and practices applicable to both

9 defense and commercial applications and on opportu10 nities to modernize operations in ways which improve

11 productivity, reduce waste and pollution, and in12 crease energy efficiency.

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

14 mechanisms for—

15 ‘‘(A) soliciting the perspectives of manufac16 turers using the services of the Manufacturing

17 Outreach Centers and Regional Centers for the

18 Transfer of Manufacturing Technology;

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

20 extension agents and in helping them dissemi21 nate information on modern manufacturing

22 technologies, including technologies for source re23 duction, and advanced workplace practices; and
31

HR 820 PP

1 ‘‘(C) rigorously evaluating the effectiveness

2 of the Manufacturing Outreach Centers and other

3 components of the Partnership.

4 ‘‘(9) This Act does not supersede, modify, or oth5 erwise alter the rights and obligations of employers,

6 employees, and labor organizations as set forth in the

7 National Labor Relations Act and the Railway Labor

8 Act or in any collective bargaining agreement entered

9 into by parties covered by those Acts.

10 ‘‘(g)(1) The Regional Centers for the Transfer of Manu11 facturing Technology and Manufacturing Outreach Centers

12 shall, as appropriate, make available source reduction and

13 energy conservation assessments to interested manufactur14 ers in the United States. These assessments shall assist such

15 interested manufacturers in identifying opportunities for

16 energy conservation and source reduction, and thus reduce

17 operating costs, through either improvement in manufactur18 ing processes or the purchase of new equipment.

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

20 appropriate Federal officials and other parties to provide

21 employees of Regional Centers for the Transfer of Manufac22 turing Technology and Manufacturing Outreach Centers

23 with the training needed to carry out the assessments speci24 fied in paragraph (1).
32

HR 820 PP

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

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

3 through the Under Secretary and Director and after con4 sulting with the private sector, shall submit an initial plan

5 for the implementation of this section to Congress—

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

7 the responsibility to create, operate, and support the

8 Partnership and the outreach network;

9 ‘‘(B) establishing criteria and procedures, con10 sistent with the requirements of this section, for—

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

12 Department of Commerce services or financial

13 assistance as part of the Partnership, including

14 qualifications and training of technology exten15 sion agents;

16 ‘‘(ii) access to services provided by partici17 pants in the Partnership and to information

18 available through the outreach network servicing

19 the Partnership; and

20 ‘‘(iii) the annual evaluation of the Partner21 ship in achieving the purposes of this section;

22 and

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

24 a National Conference of States on Technology Exten25 sion, similar in structure to the National Conference
33

HR 820 PP

1 on Weights and Measures, and, if the Secretary deter2 mines that such a Conference is advisable, developing,

3 in consultation with the States and other interested

4 parties, a plan for the establishment, operation, fund5 ing, and evaluation of such a Conference.

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

7 the National Competitiveness Act of 1994, the Secretary,

8 through the Under Secretary and Director, shall prepare

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

10 the Partnership and the outreach network and clearing11 house established under subsections (d) and (e), respectively,

12 of this section.

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

14 ‘‘(i) effective mechanisms for providing operating

15 funds for the maintenance and use of the outreach

16 network established under subsection (d), including

17 user fees, industry support, and continued Federal in18 vestment;

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

20 outreach network, including its relationship with

21 other public or private information services;

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

23 distributed over the outreach network; and

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

25 of proprietary information that might be available on
34

HR 820 PP

1 the outreach network and to protect the privacy of

2 users of the outreach network.

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

4 methods for expanding the Partnership in a geographically

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

6 implementation plan and cost estimates and shall take into

7 consideration and build on the report submitted under

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

9 Secretary shall provide an opportunity for public comment,

10 and the plan submitted to Congress shall include a sum11 mary of comments received. Any new types of activities pro12 posed by such plan may not be implemented until 90 days

13 after its submission to the Congress.

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

15 the 5-year plan under paragraph (2), the Secretary shall

16 annually report to the Congress, at the time of the Presi17 dent’s annual budget request to Congress, on—

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

19 the Partnership described in subsection (a), using cri20 teria and procedures established under paragraph

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

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

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

24 ‘‘(D) any recommendations for legislative

25 changes necessary to enhance the Partnership.
35

HR 820 PP

1 The report under this paragraph submitted at the end of

2 the fourth year of operation of the Partnership shall include

3 recommendations on whether to terminate the Partnership

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

5 (b) DEFINITIONS.—The National Institute of Stand6 ards and Technology Act (15 U.S.C. 271 et seq.) is amended

7 by inserting after section 1 the following new section:

8 ‘‘SEC. 1A. As used in this Act—

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

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

12 meanings given such terms in section 4 of the Steven13 son-Wydler Technology Innovation Act;

14 ‘‘(2) the term ‘independent research organiza15 tions’ means nonprofit organizations organized pri16 marily for the purpose of conducting or managing re17 search activities;

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

19 given that term in section 6603 of the Pollution Pre20 vention Act of 1990 (42 U.S.C. 13102);

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

22 States, the District of Columbia, the Commonwealth

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

24 Samoa, the Commonwealth of the Northern Mariana
36

HR 820 PP

1 Islands, or any other territory or possession of the

2 United States; and

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

4 States, the District of Columbia, the Commonwealth

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

6 Samoa, the Commonwealth of the Northern Mariana

7 Islands, and any other territory or possession of the

8 United States.’’.

9 SEC. 213. ADDITIONAL AMENDMENTS TO THE STEVENSON10 WYDLER TECHNOLOGY INNOVATION ACT.

11 The Stevenson-Wydler Technology Innovation Act of

12 1980 (15 U.S.C. 3701 et seq.) is amended—

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

14 title heading:

15 ‘‘TITLE I—DEPARTMENT OF COM16 MERCE AND RELATED PRO17 GRAMS’’;

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

19 (3) by redesignating sections 6 through 10 as sec20 tions 105 through 109, respectively;

21 (4) by striking section 21;

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

23 and 22 as sections 110 through 115, respectively;
37

HR 820 PP

1 (6) by inserting after section 115 (as redesig2 nated by paragraph (5) of this subsection) the follow3 ing new title heading:

4 ‘‘TITLE II—FEDERAL

5 TECHNOLOGY TRANSFER’’;

6 (7) by redesignating sections 11 through 15 as

7 sections 201 through 205, respectively;

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

9 (9) in section 4—

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

11 lieu thereof ‘‘section 101’’;

12 (B) by striking ‘‘section 5(b)(1)’’ and in13 serting in lieu thereof ‘‘section 101(b)(1)’’;

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

15 ‘‘section 6’’ and ‘‘section 8’’ each place they ap16 pear and inserting in lieu thereof ‘‘section 105’’

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

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

19 6’’ and inserting in lieu thereof ‘‘section 105’’;

20 (10) in section 108 (as redesignated by para21 graph (3) of this subsection) by striking ‘‘section

22 6(a)’’ and inserting in lieu thereof ‘‘section 106(a)’’;

23 by striking ‘‘section 6(b)’’ and inserting in lieu there24 of ‘‘section 106(b)’’; and by striking ‘‘section 6(c)(3)’’

25 and inserting in lieu thereof ‘‘section 106(c)(3)’’;
38

HR 820 PP

1 (11) in section 109(d) (as redesignated by para2 graph (2) of this subsection) by striking ‘‘section 7, 9,

3 11, 15, 17, or 20 of’’;

4 (12) in section 201(i) (as redesignated by para5 graph (7) of this subsection) by inserting ‘‘loan, lease,

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

7 under this subsection shall not be subject to Federal

8 requirements on the disposal of property.’’ after ‘‘ac9 tivities.’’;

10 (13) in section 202(b) (as redesignated by para11 graph (7) of this subsection) by striking ‘‘section

12 14(a)(1)(B) (i), (ii), and (iv)’’ and inserting in lieu

13 thereof ‘‘section 204(a)(1)(B) (i), (ii), and (iv)’’;

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

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

16 12’’ and inserting in lieu thereof ‘‘section 202’’;

17 (15) in section 115 (as redesignated by para18 graph (5) of this subsection) by striking ‘‘Act (other

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

20 thereof ‘‘title’’;

21 (16) in section 206 (as redesignated by para22 graph (7) of this subsection)—

23 (A) by striking ‘‘section 12(d)(2)’’ in the in24 troductory matter of subsection (a) and inserting

25 in lieu thereof ‘‘section 202(d)(2)’’;
39

HR 820 PP

1 (B) by striking ‘‘section 11(b)’’ in sub2 section (a)(2) and inserting in lieu thereof ‘‘sec3 tion 201(b)’’; and

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

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

6 105(d)’’;

7 (17) in section 112 (as redesignated by para8 graph (5) of this subsection)—

9 (A) in the section heading, by striking

10 ‘‘CONFERENCE’’ and inserting in lieu

11 thereof ‘‘CONFERENCES’’;

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

13 ‘‘shall convene a conference’’ and inserting in

14 lieu thereof ‘‘The Secretary, through the Under

15 Secretary, in consultation with other appro16 priate officials, may convene conferences’’; and

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

18 in insert in lieu thereof ‘‘any such conferences

19 shall, whenever appropriate,’’;

20 (18) by adding at the end of section 201 (as re21 designated by paragraph (7) of this subsection) the

22 following new subsection:

23 ‘‘(j) ADDITIONAL TECHNOLOGY TRANSFER MECHA24 NISMS.—In addition to the technology transfer mechanisms

25 set forth in this section and section 202, the heads of Federal
40

HR 820 PP

1 departments and agencies also may transfer technologies

2 through the technology transfer, extension, and deployment

3 programs of the Department of Commerce and the Depart4 ment of Defense.’’; and

5 (19) in section 101(c) (as redesignated by para6 graph (2) of this subsection)—

7 (A) by striking ‘‘and’’ at the end of para8 graph (14);

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

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

11 and’’; and

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

13 paragraph:

14 ‘‘(16) engage in joint projects with any person or per15 sons on matters within the authority of the Department of

16 Commerce, accept temporary personnel from industrial

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

18 joint projects, and in conjunction with the planning and

19 operation of such joint projects hold private meetings of

20 matters of mutual interest with groups of interested persons,

21 in order to protect sensitive information about United

22 States industry and to ensure industry participation in

23 such joint projects.’’.
41

HR 820 PP

1 SEC. 214. MANUFACTURING TECHNOLOGY CENTERS.

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

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

4 278k(a)) is amended by striking ‘‘and’’ at the end of para5 graph (4); by striking the period at the end of paragraph

6 (5) and inserting in lieu thereof a semicolon; and by insert7 ing after paragraph (5) the following new paragraphs:

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

9 advanced workplace practices and available education

10 and training programs, and the encouragement of

11 companies to train workers in the effective use of

12 modern technologies and advanced manufacturing

13 technologies; and

14 ‘‘(7) demonstration projects in which Centers

15 work with States, local governments, community de16 velopment organizations, worker and business organi17 zations, and community banks to create a business

18 climate supportive of high-performance manufactur19 ing.’’.

20 (2) Section 25(b) of the National Institute of Stand21 ards and Technology Act (15 U.S.C. 278k(b)) is amended

22 by striking ‘‘and’’ at the end of paragraph (2); by redesig23 nating paragraph (3) as paragraph (4); and by inserting

24 after paragraph (2) the following new paragraph:

25 ‘‘(3) assessments of client companies’ moderniza26 tion needs, assistance in implementing quality proc-
42

HR 820 PP

1 esses, advice on pollution minimization and source re2 duction, and, where needed, cooperation with training

3 institutions to ensure that employees, particularly

4 production workers, receive training in the most effec5 tive use of modern technologies and advanced work6 place practices; and’’.

7 (3) Section 25(c) of the National Institute of Stand8 ards and Technology Act (15 U.S.C. 278k(c)) is amended—

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

10 not to exceed six years’’; and

11 (B) in paragraph (5) by striking ‘‘which are de12 signed’’ and all that follows through the period at the

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

14 a maximum of one-third Federal funding. Each Cen15 ter which receives financial assistance under this sec16 tion shall be evaluated during its sixth year of oper17 ation, and at least triennially thereafter as the Sec18 retary considers appropriate, by an evaluation panel

19 appointed by the Secretary in the same manner as

20 was the evaluation panel previously appointed. The

21 Secretary shall not provide funding for additional

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

23 evaluation is positive and the Secretary finds that

24 continuation of funding furthers the purposes of this

25 section.’’.
43

HR 820 PP

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

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

3 at the end the following new subsections:

4 ‘‘(e) In addition to any assistance provided or con5 tracts entered into with a Center under this section, the Di6 rector is authorized to make separate and smaller awards,

7 through a competitive process, to nonprofit organizations

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

9 for the purpose of enabling those organizations to provide

10 outreach services, in collaboration with the Center, to man11 ufacturers located in parts of the region served by the Center

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

13 not served by any other manufacturing outreach center. Or14 ganizations which receive such awards shall be known as

15 Local Manufacturing Offices. In reviewing applications, the

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

17 manufacturers. No single award for a Local Manufacturing

18 Office shall be for more than 3 years, awards shall be renew19 able through the competitive awards process, and no award

20 shall be made unless the applicant provides matching funds

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

22 ‘‘(f) In carrying out this section, the Director shall co23 ordinate his efforts with the plans for the Manufacturing

24 Extension Partnership established under section 24.’’.
44

HR 820 PP

1 SEC. 215. STATE TECHNOLOGY EXTENSION PROGRAM.

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

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

4 278l(a)) is amended—

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

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

7 State Technology Extension Program.’’; and

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

9 ‘‘technical assistance’’.

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

11 of the National Institute of Standards and Technology Act

12 (15 U.S.C. 278l) is amended by adding at the end the fol13 lowing new subsection:

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

15 subsection (b), the State Technology Extension Program

16 also shall, through merit-based competitive review processes

17 and to the extent provided in advance in appropriations

18 Acts—

19 ‘‘(1) make awards to States and conduct work20 shops, pursuant to section 5121(b) of the Omnibus

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

22 278l note) in order to help States improve their plan23 ning and coordination of technology extension activi24 ties;

25 ‘‘(2) assist States, including States which his26 torically have had no manufacturing or technology
45

HR 820 PP

1 extension programs or only small programs, to plan,

2 develop, and coordinate such programs and to help

3 bring those State programs to a level of performance

4 where they can provide the full range of manufactur5 ing extension services required by their manufacturers

6 or, as appropriate, apply successfully for awards to

7 establish Manufacturing Outreach Centers, Regional

8 Centers for the Transfer of Manufacturing Tech9 nology, or both;

10 ‘‘(3) support industrial modernization dem11 onstration projects to help States create networks

12 among small manufacturers for the purpose of facili13 tating technical assistance, group services, and im14 proved productivity and competitiveness;

15 ‘‘(4) support State efforts to develop and test in16 novative ways to help small- and medium-sized man17 ufacturers in the United States improve their tech18 nical capabilities, including, as appropriate, State

19 contracts with private-sector technology transfer com20 panies to provide technology assistance and develop21 ment services that are beyond the current capacity of

22 a given State’s industrial extension activities;

23 ‘‘(5) support State efforts designed to help small24 and medium-sized manufacturers in rural as well as

25 urban areas improve and modernize their technical
46

HR 820 PP

1 capabilities, including, as appropriate, interstate ef2 forts to achieve such end;

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

4 small defense manufacturing firms to convert their

5 production to nondefense or dual-use purposes;

6 ‘‘(7) support planning for worker technology

7 education programs in the States at institutions such

8 as research universities, community colleges, technical

9 and professional societies, labor education centers,

10 labor-management committees, and worker organiza11 tions in production technologies critical to the Na12 tion’s future, with an emphasis on high-performance

13 work systems, the skills necessary to use advanced

14 manufacturing system well, and best production prac15 tice; and support on-the-job training programs in the

16 States to build and enhance the skills of employees,

17 particularly production workers, in small- and me18 dium-sized manufacturers; and

19 ‘‘(8) help States develop programs to train per20 sonnel who in turn can provide technical skills to

21 managers and workers of manufacturing firms.’’.
47

HR 820 PP

1 SEC. 216. REPORT ON OPTIONS FOR ACCELERATING THE

2 ADOPTION OF NEW MANUFACTURING EQUIP3 MENT.

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

5 the Secretary, acting through the Under Secretary, shall

6 submit to Congress a report on—

7 (1) the degree to which United States manufac8 turers have difficulty obtaining financing for the pur9 pose of purchasing equipment needed to implement

10 advanced manufacturing technology and modernize

11 operations;

12 (2) the policies and practices followed in other

13 industrialized countries to help manufacturers obtain

14 financing for modernization; and

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

16 major options by which the Federal Government

17 might help stimulate the flow of capital to manufac18 turers and thus accelerate industrial modernization,

19 including—

20 (A) creation of a Government-sponsored en21 terprise to stimulate the flow of capital to manu22 facturing;

23 (B) increasing technical advice to banks

24 and other financial institutions, perhaps through

25 the Manufacturing Extension Partnership in

26 order to increase their ability to judge whether or
48

HR 820 PP

1 not individual manufacturers have sound mod2 ernization plans;

3 (C) cooperation between extension activities

4 supported under the Manufacturing Extension

5 Partnership and manufacturing equipment leas6 ing firms in order to provide manufacturers

7 with additional information or equipment leas8 ing options; and

9 (D) tax incentives.

10 Subtitle B—National Science Foun11 dation Manufacturing Programs

12 SEC. 221. NATIONAL SCIENCE FOUNDATION MANUFACTUR13 ING PROGRAMS.

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

15 Science Foundation, after, as appropriate, consultation

16 with the Secretary, the Under Secretary, and the Director,

17 shall—

18 (1) work with United States companies to iden19 tify areas of research in advanced manufacturing

20 technologies and advanced workplace practices that

21 offer the potential to improve United States produc22 tivity, competitiveness, and employment;

23 (2) support research at United States univer24 sities to improve advanced manufacturing tech25 nologies and advanced workplace practices; and
49

HR 820 PP

1 (3) work with the Technology Administration of

2 the Department of Commerce and the Institute and,

3 as appropriate, other Federal agencies to accelerate

4 the transfer to United States companies of manufac5 turing research and innovations developed at univer6 sities.

7 (b) ENGINEERING RESEARCH CENTERS AND INDUS8 TRY/UNIVERSITY COOPERATIVE RESEARCH CENTERS.—The

9 Director of the National Science Foundation shall strength10 en and expand the number of Engineering Research Centers

11 and strengthen and expand the Industry/University Cooper12 ative Research Centers Program with the goals of increasing

13 the engineering talent base versed in technologies and work14 place practices critical to the Nation’s future, with empha15 sis on advanced manufacturing technologies, and of advanc16 ing fundamental engineering knowledge in these tech17 nologies. At least one Engineering Research Center shall

18 have a research and education focus on the concerns of

19 United States manufacturers, including small- and me20 dium-sized manufacturers that are trying to modernize

21 their operations. Awards under this subsection shall be

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

23 may include support for acquisition of instrumentation,

24 equipment, and facilities related to the research and edu25 cation activities of the Engineering Research Centers and
50

HR 820 PP

1 support for undergraduate students to participate in the ac2 tivities of the Engineering Research Centers.

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

4 National Science Foundation, in consultation with the Sec5 retary, may establish a program to provide traineeships to

6 United States citizens or permanent resident aliens who are

7 graduate students at institutions of higher education within

8 the United States who choose to pursue masters or doctoral

9 degrees in manufacturing or industrial engineering. The

10 Director of the National Science Foundation shall make an

11 effort to ensure the provision of traineeships under this sub12 section to socially and economically disadvantaged individ13 uals (within the meaning of section 8(a) (5) and (6) of the

14 Small Business Act, and including women).

15 (d) MANUFACTURING MANAGERS IN THE CLASSROOM

16 PROGRAM.—The Director of the National Science Founda17 tion, in consultation with the Secretary, may establish a

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

19 individuals from industry with experience in manufactur20 ing to serve for 1 or 2 years as instructors in manufactur21 ing at 2-year community and technical colleges in the Unit22 ed States. In selecting fellows, the Director of the National

23 Science Foundation shall place special emphasis on sup24 porting individuals who not only have expertise and prac25 tical experience in manufacturing but who also will work
51

HR 820 PP

1 to foster cooperation between 2-year colleges and nearby

2 manufacturing firms.

3 (e) PROGRAMS TO TEACH TOTAL QUALITY MANAGE4 MENT.—The Director of the National Science Foundation,

5 in consultation with the Secretary, the Under Secretary,

6 and the Director, may establish a program to develop inno7 vative curricula, courses, and materials for use by institu8 tions of higher education for instruction in total quality

9 management and related management practices, in order

10 to help improve the productivity of United States compa11 nies.

12 (f) SMALL MANUFACTURERS RENEWAL AND TRAIN13 ING.—(1) The Director of the National Science Foundation,

14 acting in cooperation with the Director, shall establish and

15 carry out a pilot program, known as the Small Manufac16 turers Renewal and Training Program in this subsection

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

18 partnerships for internship activities under this section.

19 Partnerships between engineering colleges and manufactur20 ing extension centers are eligible to apply for grants under

21 the Program and be designated as SMaRT Partnerships.

22 The Director of the National Science Foundation shall es23 tablish requirements for proposals for funding under the

24 Program, for activities undertaken by SMaRT Partnerships

25 with such funding, and for reporting by SMaRT Partner-
52

HR 820 PP

1 ships and other persons participating in the Program, and

2 criteria for selecting proposals, including economic need.

3 (2) Each SMaRT Partnership receiving a grant

4 under the Program shall use such grant funds to

5 sponsor qualified engineering students to work as in6 terns with eligible small manufacturers, especially

7 very small manufacturers, by paying the host com8 pany the Federal share of the intern’s wages, not to

9 exceed the Federal minimum wage.

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

11 interns under the Program only for manufacturing

12 operations in the United States, shall provide ade13 quate supervision to each intern, and shall use funds

14 provided under the Program only to pay wages to the

15 intern that supplement the host company share of the

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

17 wage. No company shall be eligible to receive funding

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

19 wage.

20 TITLE III—CRITICAL

21 TECHNOLOGIES

22 SEC. 301. DEVELOPMENT OF PLAN FOR THE ADVANCED

23 TECHNOLOGY PROGRAM.

24 The Secretary, acting through the Under Secretary

25 and the Director, shall, within 6 months after the date of
53

HR 820 PP

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

2 expansion of the Advanced Technology Program established

3 under section 28 of the National Institute of Standards and

4 Technology Act (15 U.S.C. 278n), with specific consider5 ation given to—

6 (1) closer coordination and cooperation with the

7 Advanced Research Projects Agency and other Federal

8 research and development agencies as appropriate;

9 (2) establishment of temporary staff positions

10 that can be filled by industrial or technical experts

11 for a period of 1 to 2 years;

12 (3) ensuring that the Advanced Technology Pro13 gram will have a meaningful impact on the utiliza14 tion of a broad range of critical technologies and on

15 the refinement of advanced manufacturing tech16 nologies;

17 (4) changes that may be needed when annual

18 funds available for grants under the Advanced Tech19 nology Program reach levels of $200,000,000 and

20 $500,000,000; and

21 (5) any additional administrative steps that

22 may be necessary for the Advanced Technology Pro23 gram to support large-scale joint research and devel24 opment ventures.
54

HR 820 PP

1 SEC. 302. LARGE-SCALE RESEARCH AND DEVELOPMENT

2 CONSORTIA.

3 Section 28 of the National Institute of Standards and

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

5 the end the following new subsection:

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

7 section to provide financial assistance to joint ventures, the

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

9 levels of authorizations and appropriations, provide finan10 cial support for up to 7 years to large-scale joint ventures

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

12 Commerce funds. The Secretary may work with industrial

13 groups to develop such proposed large-scale joint ventures

14 and shall give preference to proposals which represent a

15 broad spectrum of companies for a given industry and

16 which focus either on speeding the commercialization of im17 portant new technologies or on accelerating the develop18 ment, testing, and deployment of valuable new process tech19 nologies and workplace practices. The Secretary and Direc20 tor, as appropriate, shall obtain independent technical re21 view of industry proposals submitted under this sub22 section.’’.

23 SEC. 303. TECHNICAL AMENDMENTS.

24 (a) AMENDMENTS TO THE NATIONAL INSTITUTE OF

25 STANDARDS AND TECHNOLOGY ACT.—Section 28 of the Na26 tional Institute of Standards and Technology Act (15
55

HR 820 PP

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

2 further amended—

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

4 following new sentence: ‘‘The Secretary, acting

5 through the Director, shall ensure that the principal

6 economic benefits of the Program accrue to the econ7 omy of the United States.’’;

8 (2) in subsection (b)—

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

10 contracts’’ and inserting in lieu thereof ‘‘con11 tracts, and, subject to the last sentence of this

12 subsection, other transactions’’;

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

14 with: ‘‘participation in such joint ventures, if the

15 Secretary, acting through the Director, deter16 mines participation to be appropriate and if the

17 joint venture as a whole agrees to pay at least

18 half of the total costs of such joint ventures dur19 ing the participation period, which shall not ex20 tend beyond 5 years,’’;

21 (C) in paragraph (2) by striking ‘‘and co22 operative agreements’’ and inserting in lieu

23 thereof ‘‘cooperative agreements, and, subject to

24 the last sentence of this subsection, other trans25 actions’’; and
56

HR 820 PP

1 (D) by adding after paragraph (4) the fol2 lowing: ‘‘The authority under paragraph (1)(B)

3 and paragraph (2) to enter into other trans4 actions shall apply only if the Secretary, acting

5 through the Director, determines that standard

6 contracts, grants, or cooperative agreements are

7 not feasible or appropriate, and only when other

8 transaction instruments incorporate terms and

9 conditions that reflect the use of generally accept10 ed commercial accounting and auditing prac11 tices.’’;

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

13 ‘‘$2,000,000’’; and inserting in lieu thereof

14 ‘‘$3,000,000’’.

15 (4) by adding at the end the following new

16 subsection: ‘‘(1) Notwithstanding subsections

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

18 an extension beyond the deadlines established

19 under those subsections for joint venture and sin20 gle applicant awardees to expend Federal funds

21 to complete their projects, if such extension may

22 be granted with no additional cost to the Federal

23 Government.’’.

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

25 28(d)(11)(A) of the National Institute of Standards and
57

HR 820 PP

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

2 striking the period at the end of the first sentence and in3 serting in lieu thereof the following: ‘‘or any other person

4 otherwise eligible to participate in an eligible joint venture,

5 as agreed by the parties, receiving funding under any par6 ticular award, notwithstanding the requirements of section

7 202 (a) and (b) of title 35, United States Code.’’.

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

9 shall be effective only with respect to assistance for which

10 solicitations for proposals are made after the date of enact11 ment of this Act or October 1, 1994, whichever occurs later.

12 (c) AMENDMENTS TO THE AMERICAN TECHNOLOGY

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

14 American Technology Preeminence Act of 1991 (15 U.S.C.

15 278n note) is amended by adding at the end the following

16 new sentence: ‘‘In the case of the amendment made by sub17 paragraph (A) of subsection (c)(6), such amendment shall

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

19 stricken by such subparagraph.’’.

20 (2) Section 507 of the American Technology Pre21 eminence Act of 1991 (15 U.S.C. 3717) is repealed.

22 (d) AMENDMENTS TO THE NATIONAL SCIENCE AND

23 TECHNOLOGY POLICY, ORGANIZATION, AND PRIORITIES

24 ACT.—(1) Title IV of the National Science and Technology
58

HR 820 PP

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

2 6651) is amended to read as follows:

3 ‘‘TITLE IV—NATIONAL SCIENCE

4 AND TECHNOLOGY COUNCIL

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

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

7 ‘Council’).

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

9 of the National Competitiveness Act of 1994, the President

10 shall submit to Congress a report that outlines the composi11 tion and functions of the Council.

12 ‘‘SEC. 403. (a) The Council shall assume the respon13 sibilities and authorities of the Federal Coordinating Coun14 cil for Science, Engineering, and Technology, the National

15 Space Council, and the National Critical Materials Coun16 cil.

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

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

19 support, and printing, available to the Council.

20 ‘‘(c) The Council is authorized to establish such com21 mittees and working groups as it may require.’’.

22 (2) The Federal Coordinating Council for Science, En23 gineering, and Technology established by Public Law 94–

24 282 and by Executive Order 12039, the National Space

25 Council established by Public Law 100-685 and Executive
59

HR 820 PP

1 Order 12675, and the National Critical Materials Council

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

3 (3) Section 207(c) of the National Science and Tech4 nology Policy, Organization, and Priorities Act of 1976 (42

5 U.S.C. 6616(c)) is amended—

6 (A) by amending paragraph (1) to read as fol7 lows:

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

9 necessary to perform the functions now or hereafter vested

10 in the Director without regard to any provision of law regu11 lating the employment or compensation of persons in the

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

13 for level VI of the Senior Executive schedule as provided

14 pursuant to section 5382 of title 5, the United States Code,

15 and to prescribe their duties;’’; and

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

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

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

19 at the end the following new paragraph:

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

21 notwithstanding the provisions of section 1342, title 31,

22 United States Code.’’.
60

HR 820 PP

1 SEC. 304. TECHNOLOGY MONITORING AND COMPETITIVE2 NESS ASSESSMENT.

3 Section 101 of the Stevenson-Wydler Technology Inno4 vation Act of 1980, as redesignated by section 213(2) of this

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

6 lieu thereof the following new subsections:

7 ‘‘(e) OFFICE OF TECHNOLOGY MONITORING AND COM8 PETITIVENESS ASSESSMENT.—(1) The Secretary, through

9 the Under Secretary, shall establish within the Technology

10 Administration an Office of Technology Monitoring and

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

12 disseminate to United States industry, State and local gov13 ernments, nonprofit organizations, and other interested

14 parties information on—

15 ‘‘(A) foreign science and technology, specifically

16 information assessing foreign capabilities relative to

17 the United States;

18 ‘‘(B) policies and programs used by foreign gov19 ernments and industries to develop and apply eco20 nomically important critical technologies, how these

21 policies and programs compare with public and pri22 vate activities in the United States, and the effects

23 that these foreign policies and programs have on the

24 competitiveness of United States industry; and

25 ‘‘(C) the way in which the economic competitive26 ness of United States industry can be enhanced
61

HR 820 PP

1 through Federal programs, including Department of

2 Commerce programs, and evaluations of the effective3 ness of Federal technology programs in helping to

4 promote United States industrial competitiveness and

5 economic growth.

6 ‘‘(2) Based on the information gathered under para7 graph (1), the President, with the assistance of the Sec8 retary, shall submit to Congress an annual report on Unit9 ed States technology and competitiveness analyzing the con10 dition of United States technology relative to major trading

11 partners, key trends in foreign technology and competitive12 ness policies and targeting, and the degree to which Federal

13 programs are helping the United States to stay competitive

14 with other countries and create domestic employment op15 portunities.

16 ‘‘(3) The Office of Technology Monitoring and Com17 petitiveness Assessment is authorized to—

18 ‘‘(A) act as a focal point within the Federal Gov19 ernment for the collection and dissemination, includ20 ing electronic dissemination, of information on for21 eign process and product technologies, including in22 formation collected under the Japanese Technical Lit23 erature Program;

24 ‘‘(B) work and, as appropriate, enter into coop25 erative arrangements with sector-specific industry
62

HR 820 PP

1 trade associations or consortia to define the informa2 tion desired by industry;

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

4 foreign technology monitoring and assessment infor5 mation already collected and analyzed by the Federal

6 Government;

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

8 agreements with other Federal agencies to fill the in9 dustry’s information needs;

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

11 information or otherwise provide for such a clearing12 house;

13 ‘‘(F) direct and fund the collection of additional

14 related information;

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

16 and development activities, technical capabilities,

17 workplace practices, particularly in technical areas

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

19 lagging foreign capabilities;

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

21 areas needing a full-scale technical evaluation, and

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

23 government-industry joint ventures, grants to conduct

24 the evaluation; and
63

HR 820 PP

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

2 technical experts from the Institute and other Federal

3 laboratories into United States embassies to serve as

4 technology attaches and counselors.

5 ‘‘(f) FELLOWSHIP PROGRAM.—(1) The Secretary, act6 ing through the Under Secretary, shall establish and ad7 minister a fellowship program to support Technology Fel8 lows to assist the Under Secretary in carrying out activities

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

10 major competitors of the United States in critical tech11 nologies, and to identify opportunities for technology trans12 fer to the United States or technological collaboration for

13 United States industries.

14 ‘‘(2) Technology Fellows shall—

15 ‘‘(A) regularly report to the Department of Com16 merce on work planned, in progress, and accom17 plished; and

18 ‘‘(B) provide support to the Department of Com19 merce as requested by that Department.

20 ‘‘(3) Fellowships awarded under the program estab21 lished under this subsection shall—

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

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

24 ‘‘(C) include provisions for living and office ar25 rangements in the host country.
64

HR 820 PP

1 ‘‘(4) Only individuals who—

2 ‘‘(A) have at least a bachelors degree in engineer3 ing or science; and

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

5 manufacturing or technology development,

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

7 SEC. 305. RECOUPMENT.

8 Section 28 of the National Institute of Standards and

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

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

11 subsection:

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

13 this section may include a clause that requires the recipient

14 to make payments to the Department of Commerce as a con15 dition of receiving such assistance.

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

17 a separate account for the Advanced Technology Program

18 established under this section. Amounts received by the

19 United States pursuant to a requirement imposed under

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

21 the Secretary, to the account established under this para22 graph. Amounts so credited shall be merged with other funds

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

24 in advance in appropriations Acts, for the same purposes
65

HR 820 PP

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

2 are available.’’.

3 SEC. 306. TECHNOLOGY FINANCING PILOT PROGRAM.

4 The Stevenson-Wydler Technology Innovation Act of

5 1980 (15 U.S.C. 3701 et seq.), as amended by title II of

6 this Act, is further amended by adding at the end the follow7 ing new title:

8 ‘‘TITLE III—ADDITIONAL

9 ASSISTANCE TO INDUSTRY

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

11 ‘‘Congress finds and declares the following:

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

13 firms appear to have had increasing difficulty financ14 ing the development and early-stage commercializa15 tion of important new critical civilian technologies.

16 Venture capital is less available than in past years;

17 banks appear less willing to provide loans; and me18 dium-sized as well as small companies often have

19 problems financing promising long-term technology

20 projects.

21 ‘‘(2) This difficulty in obtaining financing par22 ticularly hurts those technology firms which face for23 eign competitors which have received substantial di24 rect or indirect financial help from their respective

25 governments.
66

HR 820 PP

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

2 financing pilot program designed to assist, on an ex3 perimental basis, private-sector venture capital enti4 ties which, in turn, can select and support the most

5 promising and valuable long-term United States tech6 nology projects.

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

8 ‘‘(a) ESTABLISHMENT OF PROGRAM.—(1) There is es9 tablished a Department of Commerce-Small Business Ad10 ministration Pilot Technology Financing Partnership Pro11 gram (in this section referred to as the ‘Pilot Program’).

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

13 direction of a Department of Commerce-Small Business Ad14 ministration Venture Capital Licensing Committee (in this

15 section referred to as the ‘Licensing Committee’), which

16 shall consist of—

17 ‘‘(A) three Department of Commerce designees

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

19 Under Secretary for Technology and shall serve as

20 chair of the Licensing Committee, and the other two

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

22 whom shall also be a finance and investment expert;

23 and

24 ‘‘(B) two Small Business Administration des25 ignees who are appointed by the Administrator of the
67

HR 820 PP

1 Small Business Administration (in this section re2 ferred to as the ‘Administrator’) who shall be finance

3 and investment experts.

4 ‘‘(3) Under the Pilot Program, for the purpose of stim5 ulating and expanding the flow of private capital to eligible

6 technology firms and eligible joint ventures—

7 ‘‘(A) the Licensing Committee may license, pur8 suant to joint regulations promulgated under para9 graph (4), private-sector entities, to be known as ‘ci10 vilian technology investment companies’; and

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

12 the Administrator and provided in advance in appro13 priations Acts, and in accordance with the operating

14 plan developed under subsection (f), the Licensing

15 Committee may authorize the Small Business Admin16 istration to assist financially such civilian technology

17 investment companies.

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

19 through the Licensing Committee, shall promulgate such

20 regulations (in this section referred to as the ‘joint regula21 tions’) as shall be necessary to carry out the Pilot Program.

22 Such joint regulations shall reflect that the Administrator

23 will have primary responsibility for executing the Pilot

24 Program, using Small Business Administration personnel

25 and the programmatic authority provided in this section,
68

HR 820 PP

1 and applicable law. In accordance with the operating plan

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

3 the Administrator may issue regulations modifying and

4 augmenting existing Small Business Administration au5 thority or program criteria, as necessary, to accommodate

6 the special needs of the Pilot Program. Those Small Busi7 ness Administration regulations which are modified or

8 adopted to facilitate the Pilot Program shall also be re9 viewed by the Licensing Committee and, if approved by the

10 Licensing Committee, shall become part of the joint regula11 tions.

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

13 Commerce technology personnel and the programmatic au14 thority provided in this section and under applicable law,

15 institute and implement a complementary information and

16 technical assistance pilot program designed to facilitate

17 matches between high-technology companies seeking financ18 ing and venture capitalists looking for meritorious early19 stage critical technology investments.

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

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

22 implement the Pilot Program may be transferred by the

23 Secretary to the Small Business Administration, as nec24 essary to carry out the purposes of this section, in accord25 ance with subsection (c)(1).
69

HR 820 PP

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

2 technology investment company licensed under this section

3 may provide venture capital and loans to eligible technology

4 firms and eligible joint ventures in such manner and under

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

6 joint regulations. Civilian technology investment companies

7 may provide venture capital and loans directly or in

8 coinvestments with other investors. The type of financing

9 to be provided shall be determined by the Licensing Com10 mittee, and shall include but shall not be limited to that

11 provided by the Small Business Act or the Small Business

12 Investment Act of 1958, or any regulation promulgated

13 thereunder.

14 ‘‘(2) Each civilian technology investment company

15 shall have authority to borrow money and to issue its deben16 tures, promissory notes, securities, or other obligations

17 under such general conditions and subject to such limita18 tions and regulations as prescribed in the joint regulations.

19 ‘‘(c) ASSISTANCE TO LICENSEES.—(1) In order to en20 courage the formation and growth of civilian technology in21 vestment companies, the Licensing Committee is authorized,

22 to the extent that funds are made available to the Depart23 ment of Commerce in appropriations Acts, to transfer such

24 funds as may be necessary to the Small Business Adminis25 tration to purchase (or guarantee the timely payment of
70

HR 820 PP

1 all principal, interest, and dividends, as scheduled, on) de2 bentures or participating, nonvoting preferred securities is3 sued by such companies, on such terms and conditions as

4 are appropriate pursuant to the joint regulations to carry

5 out the purposes of this section. The Small Business Admin6 istration is also authorized, in accordance with sections 321

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

8 regulations promulgated thereunder, to issue and guarantee

9 such trust certificates as are necessary and appropriate to

10 provide funding for qualified civilian technology investment

11 companies. Such issuance and funding shall take place in

12 the manner and on the terms and conditions as the Licens13 ing Committee directs and shall not be limited to the terms

14 and conditions that the Small Business Administration uti15 lizes for funding of small business investment companies

16 under the Small Business Investment Act of 1958.

17 ‘‘(2) Guarantees and purchases of debentures and eq18 uity securities under this subsection shall be made on such

19 terms and conditions as are necessary to ensure that the

20 cost of the program established under this section shall not

21 exceed 15 percent of its corresponding credit authority in

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

23 ‘cost’ shall have the same meaning given such term in sec24 tion 502(5) of the Federal Credit Reform Act of 1990, and

25 the term ‘credit authority’ shall have the same meaning
71

HR 820 PP

1 given such term in section 3(10) of the Congressional Budg2 et Act of 1974.

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

4 Committee shall require that any civilian technology invest5 ment company licensed and assisted under this section

6 shall—

7 ‘‘(1) focus primarily on providing patient early8 stage capital, either loans or equity investments, to el9 igible technology firms and eligible joint ventures in

10 the United States in order to help those firms and

11 joint ventures finance and accelerate the development

12 and early-stage commercialization of critical civilian

13 technologies;

14 ‘‘(2) provide financial assistance to critical civil15 ian technology projects at eligible technology firms

16 and eligible joint ventures: Provided, however, That

17 the Department of Commerce members of the Licens18 ing Committee shall determine whether the products,

19 processes, and services provided by firms assisted by

20 a licensee in fact will assist in developing United

21 States critical technologies;

22 ‘‘(3) demonstrate to the Licensing Committee

23 credible procedures for ensuring that investments are

24 made in critical technology projects for which eligible
72

HR 820 PP

1 technology firms cannot obtain necessary financing

2 solely through commercial capital markets; and

3 ‘‘(4) work with the Licensing Committee to es4 tablish methods to identify and evaluate projects to be

5 assisted by the licensee, using, as appropriate, the ex6 isting expertise of the National Institute of Standards

7 and Technology, and other organizations, including

8 Regional Centers for the Transfer of Manufacturing

9 Technology, universities, and other research institu10 tions.

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

12 Business Administration from the payment of dividends,

13 any profit allocation, the redemption of securities pursuant

14 to this section, and any fees paid to the United States by

15 a civilian technology investment company licensed pursu16 ant to this section, shall be deposited in the Treasury, in

17 accordance with the joint regulations and the requirements

18 of the Federal Credit Reform Act of 1990.

19 ‘‘(f) OPERATING PLAN; EFFECTIVE DATE; AND EVAL20 UATION.—(1) The Secretary and the Administrator, acting

21 through the Licensing Committee, shall jointly and in con22 sultation with State and local governments, industry, and

23 the financial community, prepare and submit to Congress

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

25 an operating plan and draft joint regulations to carry out
73

HR 820 PP

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

2 Administrator shall consider and evaluate alternative ap3 proaches to help technology firms and joint ventures in the

4 United States develop and commercialize critical civilian

5 technologies. As part of their report, they shall make rec6 ommendations to Congress as they deem appropriate.

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

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

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

10 date of the issuance of the report required in paragraph

11 (1).

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

13 Program authorized under this section, the Licensing Com14 mittee, in consultation with industry and the financial

15 community, shall evaluate annually the effectiveness of the

16 Program and submit an annual report to appropriate com17 mittees of Congress on the findings resulting from such eval18 uation. Such report shall contain, on a confidential basis,

19 appendices which include, but are not necessarily limited

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

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

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

23 joint ventures (and the participants comprising them) as24 sisted by each licensee, the amount of assistance provided

25 to each eligible technology firm or eligible joint venture, and
74

HR 820 PP

1 the types of technology each eligible technology firm or joint

2 venture is developing and commercializing. Such report

3 also shall contain an analysis of the Pilot Program’s im4 pact on the Small Business Administration’s Small Busi5 ness Investment Company program.

6 ‘‘(4) Five years after appropriations have been pro7 vided for the Pilot Program authorized under this section,

8 the General Accounting Office, in consultation with indus9 try and the financial community, shall evaluate the effec10 tiveness of the Program and submit a report to appropriate

11 committees of Congress on the findings resulting from such

12 evaluation. Such evaluation shall include an analysis of the

13 Pilot Program’s impact on the Small Business Administra14 tion’s Small Business Investment Company program.

15 ‘‘(g) DEFINITIONS.—As used in this section, the

16 term—

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

18 the Committee on Science, Technology, and Space and

19 Committee on Small Business of the House of Rep20 resentatives and the Committee on Commerce,

21 Science, and Transportation and Committee on

22 Small Business of the Senate;

23 ‘‘(2) ‘critical civilian technology’ means a tech24 nology not exclusively military which is identified in

25 one or more of the biennial national critical tech-
75

HR 820 PP

1 nologies reports required under section 603 of the Na2 tional Science and Technology Policy, Organization,

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

4 ‘‘(3) ‘eligible joint venture’ means a joint re5 search and development venture or joint production

6 venture, as defined in section 2 of the National Coop7 erative Research Act of 1984 (5 U.S.C. 4301)—

8 ‘‘(A) which meets the requirements of sec9 tion 28(d)(9) of the National Institute of Stand10 ards and Technology Act (15 U.S.C. 278n(d)(9));

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

12 the development of products, processes, and serv13 ices based on critical civilian technologies; and

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

15 Licensing Committee, which size standards need

16 not comply with the Small Business Act or the

17 Small Business Investment Act of 1958, or any

18 regulation promulgated thereunder or interpreta19 tion thereof;

20 ‘‘(4) ‘eligible technology firm’ means a com21 pany—

22 ‘‘(A) which meets the requirements of sec23 tion 28(d)(9) of the National Institute of Stand24 ards and Technology Act (15 U.S.C. 278n(d)(9));
76

HR 820 PP

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

2 the development of products, processes, and serv3 ices based on critical civilian technologies; and

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

5 Administrator;

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

7 individual who has administered or participated in a

8 venture capital or similar financing program, or has

9 operated a venture capital company; and

10 ‘‘(5) ‘licensee’ means a civilian technology invest11 ment company licensed by the Licensing Committee

12 pursuant to this section.’’.

13 SEC. 307. REPORTS ON FOREIGN INDUSTRIAL ESPIONAGE.

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

15 its oversight functions with respect to this Act and to im16 prove the awareness of United States industry of foreign

17 industrial espionage and the ability of such industry to pro18 tect against such espionage, the President shall submit to

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

20 the following:

21 (A) The respective policy functions and oper22 ational roles of the agencies of the executive branch of

23 the Federal Government in identifying and counter24 ing threats to United States industry of foreign in-
77

HR 820 PP

1 dustrial espionage, including the manner in which

2 such functions and roles are coordinated.

3 (B) The means by which the Federal Government

4 communicates information on such threats, and on

5 methods to protect against such threats, to United

6 States industry in general and to United States com7 panies known to be targets of foreign industrial espio8 nage.

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

10 be undertaken in order to improve the activities re11 ferred to in subparagraphs (A) and (B), including

12 proposals for any modifications of law necessary to

13 facilitate the undertaking of such activities.

14 (D) The threat to United States industry of for15 eign industrial espionage and any trends in that

16 threat, including—

17 (i) the number and identity of the foreign

18 governments conducting foreign industrial espio19 nage;

20 (ii) the industrial sectors and types of infor21 mation and technology targeted by such espio22 nage; and

23 (iii) the methods used to conduct such espio24 nage.
78

HR 820 PP

1 (2) The President shall submit the report required

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

3 of the enactment of this Act.

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

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

6 the expiration of each year thereafter, the President shall

7 submit to Congress a report updating the information re8 ferred to in paragraph (1)(D) of that subsection.

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

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

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

12 accompanied by a classified appendix.

13 (d) REPORT UNDER DEFENSE PRODUCTION ACT.—

14 Section 721(k)(1)(B) of the Defense Production Act of 1950

15 (50 U.S.C. App. 2170(k)(1)(B)) is amended by inserting

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

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

18 ‘‘foreign industrial espionage’’ means industrial espionage

19 conducted by a foreign government or by a foreign company

20 with direct assistance of a foreign government against a

21 private United States company and aimed at obtaining

22 commercial secrets.
79

HR 820 PP

1 TITLE IV—ADDITIONAL COM2 MERCE DEPARTMENT PROVI3 SIONS

4 SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY ADVI5 SORY BOARD.

6 The Stevenson-Wydler Technology Innovation Act of

7 1980 (as amended by sections 211 and 213 of this Act) is

8 further amended by inserting after section 103 (as added

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

10 ‘‘SEC. 104. DEPARTMENT OF COMMERCE TECHNOLOGY AD11 VISORY BOARD.

12 ‘‘(a) ESTABLISHMENT.—There is established a Depart13 ment of Commerce Technology Advisory Board (in this sec14 tion referred to as the ‘Advisory Board’), the purpose of

15 which is to advise the Secretary, Under Secretary, and Di16 rector on the plans, programs, and policies of the Tech17 nology Administration, including ways in which to—

18 ‘‘(1) promote the development and rapid appli19 cation of advanced commercial technologies, including

20 advanced manufacturing technologies such as skill21 based production technologies;

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

23 Administration; and

24 ‘‘(3) generally improve the global competitiveness

25 of industries within the United States.
80

HR 820 PP

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

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

3 Secretary from among individuals who, because of their ex4 perience and accomplishments in technology development,

5 business development, or finance are exceptionally qualified

6 to analyze and formulate policy that would improve the

7 global competitiveness of industries in the United States.

8 The Under Secretary shall designate one member to serve

9 as chairman. Membership of the Advisory Board shall be

10 composed of—

11 ‘‘(1) representatives of—

12 ‘‘(A) United States small businesses;

13 ‘‘(B) United States manufacturers;

14 ‘‘(C) research universities and independent

15 research institutes;

16 ‘‘(D) State and local government agencies

17 involved in industrial extension;

18 ‘‘(E) national laboratories;

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

20 professional organizations; and

21 ‘‘(G) financial organizations; and

22 ‘‘(2) other individuals that possess important in23 sight to issues of national competitiveness.

24 The Under Secretary shall make an effort to ensure the ap25 pointment of socially and economically disadvantaged indi-
81

HR 820 PP

1 viduals (within the meaning of section 8(a) (5) and (6) of

2 the Small Business Act, and including women) to the Advi3 sory Board.

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

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

6 the date of enactment of this section.

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

8 6 months, and at the call of the Under Secretary.

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

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

11 shall be allowed travel expenses in accordance with sub12 chapter I of chapter 57 of title 5, United Stated Code, while

13 engaged in the business of the Advisory Board.

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

15 Under Secretary shall consult with other agencies, as ap16 propriate. The Advisory Board, as appropriate, shall estab17 lish communication and coordination mechanisms with

18 other Federal advisory committees to help ensure integrated

19 Federal-private consideration of technology and manufac20 turing policies and programs.

21 ‘‘(f) TERMINATION.—Section 14 of the Federal Advi22 sory Committee Act shall not apply to the Advisory Board.

23 ‘‘(g) SECRETARIAL DISCRETION.—Notwithstanding

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

25 the discretion to decide whether to establish the Advisory
82

HR 820 PP

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

2 of closer cooperation with industry. If the Secretary exer3 cises such discretion and establishes an alternative mecha4 nism, the Under Secretary shall make an effort to ensure

5 the participation of socially and economically disadvan6 taged individuals (within the meaning of section 8(a) (5)

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

8 in the alternative mechanism.’’.

9 SEC. 402. INTERNATIONAL STANDARDIZATION.

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

11 (1) private sector consensus standards are essen12 tial to the timely development of competitive products;

13 (2) Federal Government contribution of resources

14 and more active participation in the voluntary stand15 ards process in the United States can increase the

16 quality of United States standards, increase their

17 compatibility with the standards of other countries,

18 and ease access of products manufactured by United

19 States manufacturers to foreign markets; and

20 (3) the Federal Government, working in coopera21 tion with private sector organizations including trade

22 associations, engineering societies, technical organiza23 tions, and other standards-setting bodies can effec24 tively promote Federal Government use of United

25 States consensus standards and, where appropriate,
83

HR 820 PP

1 the adoption and Federal Government use of inter2 national standards.

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

4 the American Technology Preeminence Act of 1991 (Public

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

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

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

8 in lieu thereof ‘‘financial contributions deemed appro9 priate by the Secretary’’; and

10 (3) by adding at the end the following new para11 graph:

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

13 expand the program established under section 112 of the

14 National Institute of Standards and Technology Authoriza15 tion Act for Fiscal Year 1989 (15 U.S.C. 272 note) by ex16 tending the existing program to include other countries that

17 request assistance with standards-related activities from of18 ficial representatives of the United States Government. The

19 Institute may enter into additional contracts with non-Fed20 eral organizations representing United States companies

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

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

23 278n(d)(9)(B)) or with United States-based professional so24 cieties and other standards-setting bodies that participate

25 in the development of standards. Such contracts shall re-
84

HR 820 PP

1 quire cost sharing between Federal and non-Federal sources

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

3 shall seek to promote and support the dissemination of

4 United States technical standards to additional foreign

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

6 to promote the adoption of international standards sup7 ported by United States industry, and shall seek to assist

8 private sector developers of standards, including engineer9 ing societies which participate in the development of stand10 ards in expediting the development of domestic and other

11 standards which enable the introduction of technologies,

12 products, or technology-based services which are being de13 layed due to the lack of available standards. The Institute

14 and such contractors shall, in carrying out the preceding

15 sentence, cooperate with governmental bodies, private orga16 nizations (including standards setting organizations and

17 industry), and multinational institutions that promote eco18 nomic development. The organizations receiving such con19 tracts may establish training programs to bring to the

20 United States foreign standards experts for the purpose of

21 receiving in-depth training in the United States standards

22 system.’’.

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

24 508(a) of the American Technology Preeminence Act of

25 1991 (15 U.S.C. 3701 note) is amended—
85

HR 820 PP

1 (A) by inserting ‘‘standards development and

2 international’’ after ‘‘a thorough review of inter3 national’’;

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

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

6 (C) by inserting before paragraph (2), as so re7 designated, the following new paragraph:

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

9 Government in the development and promulgation of do10 mestic and global product and process standards.’’.

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

12 and the Department of Commerce Technology Advisory

13 Board established under section 104 of the Stevenson14 Wydler Technology Innovation Act of 1980 (as added by

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

16 participation of the private sector, shall submit to the Con17 gress a report describing the appropriate roles of the De18 partment of Commerce in aid to United States companies

19 in achieving conformity assessment and accreditation and

20 otherwise qualifying their products in foreign markets,

21 through the development and promulgation of domestic and

22 global product and quality standards, and through Depart23 ment of Commerce programs related to conformity assess24 ment and accreditation procedures based upon such stand25 ards, including a discussion of the extent to which each of
86

HR 820 PP

1 the policy options provided in the March 1992 Office of

2 Technology Assessment report on global standards, contrib3 utes to meeting the goals of—

4 (A) increasing the international adoption of

5 standards beneficial to United States industries; and

6 (B) improving the coordination of United States

7 representation at international standards setting bod8 ies.

9 SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.

10 (a) RESTRICTIONS.—Section 111(c)(3) of the Steven11 son-Wydler Technology Innovation Act of 1980, as so redes12 ignated by section 213(5) of this Act, is amended to read

13 as follows:

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

15 subcategory if there are no qualifying enterprises in that

16 category or subcategory.’’.

17 (b) CATEGORIES IN WHICH AWARD MAY BE GIVEN.—

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

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

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

21 new subparagraph:

22 ‘‘(D) Educational institutions.’’.

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

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

25 containing—
87

HR 820 PP

1 (i) criteria for qualification for a Malcolm

2 Baldrige National Quality Award by various classes

3 of educational institutions;

4 (ii) criteria for the evaluation of applications for

5 such awards under section 111(d)(1) of the Stevenson6 Wydler Technology Innovation Act of 1980, as so re7 designated by section 213(5) of this Act; and

8 (iii) a plan for funding awards described in

9 clause (i).

10 (B) In preparing the report required under subpara11 graph (A), the Secretary shall consult with the National

12 Science Foundation and other public and private entities

13 with appropriate expertise, and shall provide for public no14 tice and comment.

15 (C) The Secretary shall not accept applications for

16 awards described in subparagraph (A)(i) until after the re17 port required under subparagraph (A) is submitted to Con18 gress.

19 SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT

20 AGREEMENTS.

21 Section 202(d)(2)(A) of the Stevenson-Wydler Tech22 nology Innovation Act of 1980, as so redesignated by section

23 213(7) of this Act, by inserting ‘‘including Federal test and

24 evaluation facilities,’’ after ‘‘by a Federal agency,’’.
88

HR 820 PP

1 SEC. 405. PROGRAM EVALUATIONS.

2 Section 101 of the Stevenson-Wydler Technology Inno3 vation Act of 1980, as so redesignated by section 213(2)

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

5 by adding at the end the following new subsection:

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

7 through the Under Secretary, shall—

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

9 analyses to advance knowledge of the ways in which

10 the economic competitiveness of United States compa11 nies can be enhanced through Federal programs estab12 lished under the National Competitiveness Act of 1994

13 or the amendments made by that Act; and

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

15 Federal technology programs established or expanded

16 under the National Competitiveness Act of 1994 or the

17 amendments made by that Act in order to judge their

18 effectiveness and make recommendations to improve

19 their contribution to United States competitiveness.

20 ‘‘(2) All executive departments and agencies shall as21 sist the Secretary in carrying out this subsection as appro22 priate.

23 ‘‘(3) Nothing in this subsection shall authorize the re24 lease of information to, or the use of information by, the

25 Secretary or Under Secretary in a manner inconsistent

26 with law or any procedure established pursuant thereto.
89

HR 820 PP

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

2 personnel and may provide such services, with or without

3 reimbursement, as the Secretary may request to assist in

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

5 SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECH6 NOLOGIES.

7 Within 9 months after the date of enactment of this

8 Act, the Critical Technologies Institute established under

9 section 822 of the National Defense Authorization Act for

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

11 with the private sector and appropriate officials from other

12 Federal agencies, submit to Congress a report on advanced

13 lithography technologies for the production of semiconductor

14 devices. The report shall include the Critical Technologies

15 Institute’s evaluation of the likely technical and economic

16 advantages and disadvantages of each such technology, an

17 analysis of current private and Government research to de18 velop each such technology, and any recommendations the

19 Critical Technologies Institute may have regarding future

20 Federal support for research and development in advanced

21 lithography.

22 SEC. 407. CLEARINGHOUSE ON STATE AND LOCAL INITIA23 TIVES.

24 Section 105(a) of the Stevenson-Wydler Technology In25 novation Act of 1980, as so redesignated by section 213(5)
90

HR 820 PP

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

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

3 ‘‘Technology Administration’’.

4 SEC. 408. WIND ENGINEERING RESEARCH PROGRAM.

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

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

7 (b) FINDINGS.—Congress finds and declares the follow8 ing:

9 (1) Hurricanes and tornadoes kill more Ameri10 cans and destroy more property than any other natu11 ral disaster.

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

13 winds cause billions of dollars of damage to homes,

14 schools, and other buildings, roads and bridges, elec15 trical power distribution networks, and communica16 tions networks.

17 (3) Research on wind and wind engineering has

18 resulted in improved methods for making buildings

19 and other structures less vulnerable to extreme winds,

20 but additional research funding is needed to develop

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

22 wind-resistant construction.

23 (4) Federal funding for wind engineering re24 search has decreased drastically over the last 20 years.
91

HR 820 PP

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

2 of data on near-surface wind speed and distribution

3 during hurricanes, tornadoes, and other severe storms.

4 (6) Many existing methods for wind-resistant

5 construction are inexpensive and easy to implement

6 but often they are not applied because the construc7 tion industry and the general public are unaware of

8 such methods.

9 (7) Various Federal agencies have important

10 roles to play in wind engineering research, but at

11 present there is little interagency cooperation in this

12 area.

13 (8) Establishment of a Federal Wind Engineer14 ing Program would result in new technologies for

15 wind-resistant construction, broader application of

16 such technologies in construction, and ultimately de17 creased loss of life and property due to extreme winds.

18 (c) PURPOSE.—The purpose of this section is to create

19 a Wind Engineering Program within the National Institute

20 of Standards and Technology, which would—

21 (1) provide for wind engineering research;

22 (2) serve as a clearinghouse for information on

23 wind engineering; and

24 (3) improve interagency coordination on wind

25 engineering research between the National Institute of
92

HR 820 PP

1 Standards and Technology, the National Oceanic and

2 Atmospheric Administration, the National Science

3 Foundation, the Federal Aviation Administration,

4 and other appropriate agencies.

5 (d) ESTABLISHMENT.—Within the National Institute

6 of Standards and Technology, there shall be established a

7 Wind Engineering Program which shall—

8 (1) conduct research and development, in co9 operation with the private sector and academia, on

10 new methods for mitigating wind damage due to tor11 nadoes, hurricanes, and other severe storms;

12 (2) fund construction and maintenance of wind

13 tunnels and other research facilities needed for wind

14 engineering research;

15 (3) promote the application of existing methods

16 for, and research results on, reducing wind damage to

17 buildings that are usually incompletely- or non-engi18 neered, such as single family dwellings, mobile homes,

19 light industrial buildings, and small commercial

20 structures;

21 (4) transfer technology developed in wind engi22 neering research to the private sector so that it may

23 be applied in building codes, design practice, and

24 construction;
93

HR 820 PP

1 (5) conduct, in conjunction with the National

2 Oceanic and Atmospheric Administration, post-disas3 ter research following hurricanes, tornadoes, and other

4 severe storms to evaluate the vulnerability of different

5 types of buildings to extreme winds;

6 (6) serve as a point of contact for dissemination

7 of research information on wind engineering and

8 work with the private sector to develop education and

9 training programs on construction techniques, devel10 oped from research results, for reducing wind damage;

11 (7) work with the National Oceanic and Atmos12 pheric Administration, the Federal Aviation Admin13 istration, and other agencies as is appropriate, on

14 meteorology programs to collect and disseminate more

15 data on extreme wind events; and

16 (8) work with the National Science Foundation

17 to support and expand basic research on wind engi18 neering.

19 SEC. 409. ENVIRONMENTALLY SENSITIVE CONSTRUCTION

20 TECHNOLOGIES.

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

22 ‘‘Environmentally Sensitive Construction Act of 1994’’.

23 (b) FINDINGS AND PURPOSES.—Congress finds the fol24 lowing:
94

HR 820 PP

1 (1) As the world economy develops, environ2 mental concerns are becoming increasingly critical.

3 (2) Developing the world economy through the

4 use of environmentally sound technologies will pay

5 dividends for years to come.

6 (3) The United States should be a leader in de7 veloping environmentally sound technologies.

8 (4) As shelter is a basic human need, the devel9 opment of environmentally sound construction tech10 niques should be a priority area.

11 (5) Establishment of a Federal Environmentally

12 Sensitive Construction Program within the Institute

13 would result in new technologies for environmentally

14 sensitive construction, broader application of such

15 technologies in construction, and an improved world

16 economy and environment.

17 (c) ESTABLISHMENT.—Within the Institute, there shall

18 be established a Federal Environmentally Sensitive Con19 struction Program which shall—

20 (1) conduct research and development, in co21 operation with the private sector and academia, on

22 construction materials and techniques which result in

23 structures which pose low environmental and health

24 risks for their occupants and minimize waste genera25 tion and other environmental problems;
95

HR 820 PP

1 (2) as appropriate and permitted by appropria2 tions, support academic research projects in regions

3 around the Nation to develop and demonstrate envi4 ronmentally sensitive construction; and

5 (3) disseminate information on environmentally

6 sensitive construction technology.

7 SEC. 410. AMERICAN WORKFORCE QUALITY.

8 (a) WORKFORCE ACTIVITIES.—In addition to existing

9 responsibilities and authorities prescribed by law, the Sec10 retary, through the Director and after consultation with the

11 Secretary of Labor, shall ensure that Regional Centers for

12 the Transfer of Manufacturing Technology and Manufac13 turing Outreach Centers utilize, when appropriate, their ex14 pertise and capability to assist managers and workers of

15 manufacturers in the United States in effectively utilizing

16 and operating advanced manufacturing technologies and

17 modern technologies—

18 (1) by making available assessments of the needs

19 of manufacturers in the United States for worker

20 training in the effective utilization and operation of

21 specific technologies the manufacturers have adopted

22 or are planning to adopt;

23 (2) by making available to manufacturers in the

24 United States information on commercially and pub25 licly provided worker training services, including
96

HR 820 PP

1 those provided by United States sources of tech2 nologies, in the effective utilization and operation of

3 specific technologies the manufacturers have adopted

4 or are planning to adopt; and

5 (3) by providing information to client firms and

6 their workers to enable them effectively to utilize and

7 operate specific technologies that the firms have

8 adopted or plan to adopt.

9 (b) WORKFORCE ANALYSIS AND INFORMATION DIS10 SEMINATION.—In addition to existing responsibilities and

11 authorities prescribed by law, the Secretary, through the Di12 rector and in consultation with the Secretary of Labor and

13 other appropriate Federal officials and with leaders of in14 dustry and labor, shall assist managers and other workers

15 of manufacturers in the United States in effectively utiliz16 ing and operating advanced manufacturing technologies

17 and modern technologies—

18 (1) by establishing and managing a clearing19 house for information, to be available through an ap20 propriate entity to the Regional Centers for the

21 Transfer of Manufacturing Technology, to the Manu22 facturing Outreach Centers when they are established,

23 to other technology training entities, or directly to

24 manufacturers, on the best available training mate25 rial and services for the effective utilization and oper-
97

HR 820 PP

1 ation of specific advanced manufacturing technologies

2 and modern technologies;

3 (2) by encouraging United States providers of

4 advanced manufacturing technologies and modern

5 technologies for manufacturers to develop training

6 material specifically designed for the managers and

7 other workers responsible for utilizing and operating

8 such technologies; and

9 (3) by establishing as an important criterion in

10 the assessment of advanced manufacturing tech11 nologies and modern technologies the availability of

12 training material specifically designed for the man13 agers and other workers responsible for utilizing and

14 operating such technologies.

15 SEC. 411. SEVERABILITY.

16 If any provision of this Act or the amendments made

17 by this Act, or the application thereof to any person or cir18 cumstance, is held invalid, the remainder of this Act and

19 the amendments made by this Act, and the application

20 thereof to other persons or circumstances, shall not be af21 fected thereby.

22 SEC. 412. USE OF DOMESTIC PRODUCTS.

23 (a) PROHIBITION AGAINST FRAUDULENT USE OF

24 ‘‘MADE IN AMERICA’’ LABELS.—(1) A person shall not in25 tentionally affix a label bearing the inscription of ‘‘Made
98

HR 820 PP

1 in America’’, or any inscription with that meaning, to any

2 product sold in or shipped to the United States, if that

3 product is not a domestic product.

4 (2) A person who violates paragraph (1) shall not be

5 eligible for any contract for a procurement carried out with

6 amounts authorized under this Act, or under any amend7 ment made by this Act, including any subcontract under

8 such a contract pursuant to the debarment, suspension, and

9 ineligibility procedures in subpart 9.4 of chapter 1 of title

10 48, Code of Federal Regulations, or any successor proce11 dures thereto.

12 (b) COMPLIANCE WITH BUY AMERICAN ACT.—(1) Ex13 cept as provided in paragraph (2), the head of each agency

14 which conducts procurements shall ensure that such pro15 curements are conducted in compliance with sections 2

16 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a

17 through 10c, popularly known as the ‘‘Buy American Act’’).

18 (2) This subsection shall apply only to procurements

19 made for which—

20 (A) amounts are authorized by this Act, or by

21 any amendment made by this Act, to be made avail22 able; and

23 (B) solicitations for bids are issued after the date

24 of enactment of this Act.
99

HR 820 PP

1 (3) The Secretary, before January 1, 1995, shall report

2 to the Congress on procurements covered under this sub3 section of products that are not domestic products.

4 (c) PURCHASE OF AMERICAN MADE EQUIPMENT AND

5 PRODUCTS.—(1) It is the sense of Congress that any recipi6 ent of a grant under this Act, or under any amendment

7 made by this Act, should, when practical, purchase only

8 American made equipment and products when expending

9 grant monies.

10 (2) In allocating grants under this Act, or under any

11 amendment made by this Act, the Secretary shall provide

12 to each recipient a notice describing the statement made

13 in paragraph (1) by the Congress.

14 (d) DEFINITION.—For the purposes of this section, the

15 term ‘‘domestic product’’ means a product—

16 (1) that is manufactured or produced in the

17 United States; and

18 (2) at least 50 percent of the cost of the articles,

19 materials, or supplies of which are mined, produced,

20 or manufactured in the United States.

21 SEC. 413. PERSONNEL.

22 Notwithstanding any other provision of law, the per23 sonnel management demonstration project, established

24 under section 10 of the National Bureau of Standards Au-
100

HR 820 PP

1 thorization Act for Fiscal Year 1987 (15 U.S.C. 275 note),

2 is extended until December 31, 1998.

3 TITLE V—AUTHORIZATIONS OF

4 APPROPRIATIONS

5 SEC. 501. TECHNOLOGY ADMINISTRATION.

6 (a) AUTHORIZATION OF APPROPRIATIONS.—There are

7 authorized to be appropriated to the Secretary, to carry out

8 the activities of the Under Secretary and the Assistant Sec9 retary of Commerce for Technology Policy, in addition to

10 any other amounts authorized for such purposes, for the Of11 fice of the Under Secretary—

12 (1) $6,000,000 for fiscal year 1994;

13 (2) $11,300,000 for fiscal year 1995, of which

14 $2,000,000 are authorized for program evaluations

15 under section 101(g) of the Stevenson-Wydler Tech16 nology Innovation Act of 1980, as added by section

17 405 of this Act; and

18 (3) $14,000,000 for fiscal year 1996.

19 (b) NATIONAL TECHNICAL INFORMATION SERVICE FA20 CILITIES STUDY.—As part of its modernization effort and

21 before signing any lease for a new facility, the National

22 Technical Information Service, in consultation with the

23 General Services Administration, shall study and report to

24 Congress on the feasibility of accomplishing all or part of

25 its modernization by signing a long-term lease with an or-
101

HR 820 PP

1 ganization that agrees to supply a facility and supply and

2 periodically upgrade modern equipment which permits the

3 National Technical Information Service to receive, store,

4 and manipulate in electronic form, and print, electroni5 cally-created documents and reports and to carry out the

6 other functions assigned to the National Technical Informa7 tion Service.

8 SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECH9 NOLOGY.

10 (a) INTRAMURAL SCIENTIFIC AND TECHNICAL RE11 SEARCH AND SERVICES.—(1) There are authorized to be ap12 propriated to the Secretary, to carry out the intramural

13 scientific and technical research and services activities of

14 the Institute, $240,988,000 for fiscal year 1994,

15 $320,000,000 for fiscal year 1995, and $350,000,000 for fis16 cal year 1996.

17 (2) Of the amounts authorized under paragraph (1)—

18 (A) $1,000,000 for each of the fiscal years 1994,

19 1995, and 1996 are authorized only for the evaluation

20 of nonenergy-related inventions;

21 (B) $8,054,000 for fiscal year 1994 and

22 $8,113,000 for each of the fiscal years 1995 and 1996

23 are authorized only for the technical competence fund;

24 and
102

HR 820 PP

1 (C) $5,000,000 for each of the fiscal years 1994,

2 1995, and 1996 are authorized only for the standards

3 pilot project established under section 104(e) of the

4 American Technology Preeminence Act of 1991 (Pub5 lic Law 102–245; 106 Stat. 10).

6 (b) FACILITIES.—In addition to the amounts author7 ized under subsection (a), there are authorized to be appro8 priated to the Secretary $62,000,000 for fiscal year 1994,

9 $110,392,000 for fiscal year 1995, and $112,000,000 for fis10 cal year 1996, for the renovation and upgrading of the In11 stitute’s facilities. The Institute may enter into a contract

12 for the design work for such purposes only if Federal Gov13 ernment payments under the contract are limited to

14 amounts provided in advance in appropriations Acts.

15 (c) EXTRAMURAL INDUSTRIAL TECHNOLOGY SERV16 ICES.—(1) In addition to the amounts authorized under

17 subsections (a) and (b), there are authorized to be appro18 priated to the Secretary, to carry out the extramural indus19 trial technology services activities of the Institute—

20 (A) for the Manufacturing Extension Partner21 ship, $40,000,000 for fiscal year 1994, $70,000,000

22 for fiscal year 1995, and $100,000,000 for fiscal year

23 1996;

24 (B) for the Advanced Technology Program,

25 $200,000,000 for fiscal year 1994, $475,000,000 for
103

HR 820 PP

1 fiscal year 1995, and $575,000,000 for fiscal year

2 1996; and

3 (C) for quality programs at the Institute,

4 $2,800,000 for fiscal year 1994, $10,000,000 for fiscal

5 year 1995, and $10,000,000 for fiscal year 1996.

6 (2) The Secretary shall ensure that audits are per7 formed by outside auditors on the programs for which funds

8 are appropriated pursuant to this subsection. The summary

9 results of such audits shall be submitted to Congress by the

10 end of each of the fiscal years 1994 and 1995, and not more

11 than $2,000,000, or 2 percent of the aggregate amount made

12 available under this subsection, whichever is greater, shall

13 be used in each such fiscal year for performing the audits.

14 (d) TRANSFERS.—(1) Funds may be transferred

15 among the line items listed in subsection (a) and among

16 the line items listed in subsection (c) so long as—

17 (A) the net funds transferred to or from any line

18 item do not exceed 10 percent of the amount author19 ized for that line item in such subsection;

20 (B) the aggregate amount authorized under sub21 section (a) is not changed; and

22 (C) the Committee on Commerce, Science, and

23 Transportation of the Senate and the Committee on

24 Science, Space, and Technology of the House of Rep-
104

HR 820 PP

1 resentatives are notified in advance of any such

2 transfer.

3 (2) The Secretary may propose transfers to or from

4 any line item listed in subsection (a) exceeding 10 percent

5 of the amount authorized from such line item, but such pro6 posed transfer may not be made unless—

7 (A) a full and complete explanation of any such

8 proposed transfer and the reason therefor are trans9 mitted in writing to the Speaker of the House of Rep10 resentatives, the President of the Senate, and the ap11 propriate authorizing committees of the House of

12 Representatives and the Senate; and

13 (B) 30 days have passed following the trans14 mission of such written explanation.

15 (e) WIND ENGINEERING.—(1) There are authorized to

16 be appropriated to the Institute for the purposes of section

17 408 of this Act, $1,000,000 for fiscal year 1994 and

18 $3,000,000 for each of the fiscal years 1995 and 1996.

19 (2) Of the amounts appropriated under paragraph (1),

20 no less than 50 percent shall be used for cooperative agree21 ments with the National Oceanic and Atmospheric Admin22 istration, the National Science Foundation, and the Federal

23 Aviation Administration, or other agencies, for wind engi24 neering research, development of improved practices for
105

HR 820 PP

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;
106

HR 820 PP

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.
107

HR 820 PP

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-
108

HR 820 PP

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.
109

HR 820 PP

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:
110

HR 820 PP

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
111

HR 820 PP

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—
112

HR 820 PP

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
113

HR 820 PP

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
114

HR 820 PP

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
115

HR 820 PP

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
116

HR 820 PP

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-
117

HR 820 PP

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:
118

HR 820 PP

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:
119

HR 820 PP

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.
120

HR 820 PP

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
121

HR 820 PP

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-
122

HR 820 PP

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;
123

HR 820 PP

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.’’.
124

HR 820 PP

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;
125

HR 820 PP

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
126

HR 820 PP

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
127

HR 820 PP

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,
128

HR 820 PP

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-
129

HR 820 PP

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-
130

HR 820 PP

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’)
131

HR 820 PP

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-
132

HR 820 PP

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.
133

HR 820 PP

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-
134

HR 820 PP

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’’.
135

HR 820 PP

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-
136

HR 820 PP

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-
137

HR 820 PP

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
138

HR 820 PP

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
139

HR 820 PP

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)—
140

HR 820 PP

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.
141

HR 820 PP

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;
142

HR 820 PP

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—
143

HR 820 PP

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
144

HR 820 PP

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
145

HR 820 PP

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
146

HR 820 PP

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
147

HR 820 PP

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-
148

HR 820 PP

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.’’.
149

HR 820 PP

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.
150

HR 820 PP

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
151

HR 820 PP

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
152

HR 820 PP

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
153

HR 820 PP

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.
154

HR 820 PP

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.’’.
155

HR 820 PP

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-
156

HR 820 PP

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’.’’
157

HR 820 PP

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.’’
158

HR 820 PP

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.]’’
159

HR 820 PP

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,
160

HR 820 PP

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;
161

HR 820 PP

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.
162

HR 820 PP

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
163

HR 820 PP

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’’;
164

HR 820 PP

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
165

HR 820 PP

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
166

HR 820 PP

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.
167

HR 820 PP

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;
168

HR 820 PP

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;
169

HR 820 PP

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—
170

HR 820 PP

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—
171

HR 820 PP

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-
172

HR 820 PP

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.
173

HR 820 PP

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
174

HR 820 PP

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
175

HR 820 PP

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
176

HR 820 PP

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-
177

HR 820 PP

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
178

HR 820 PP

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.
179

HR 820 PP

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-
180

HR 820 PP

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.
181

HR 820 PP

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,’
182

HR 820 PP

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
183

HR 820 PP

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.
184

HR 820 PP

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;
185

HR 820 PP

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
186

HR 820 PP

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
187

HR 820 PP

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;
188

HR 820 PP

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’’—
189

HR 820 PP

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;
190

HR 820 PP

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.
191

HR 820 PP

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.
192

HR 820 PP

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;
193

HR 820 PP

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-
194

HR 820 PP

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;
195

HR 820 PP

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;
196

HR 820 PP

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
197

HR 820 PP

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
198

HR 820 PP

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-
199

HR 820 PP

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
200

HR 820 PP

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;
201

HR 820 PP

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
202

HR 820 PP

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.);
203

HR 820 PP

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
204

HR 820 PP

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
205

HR 820 PP

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
206

HR 820 PP

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—
207

HR 820 PP

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.
208

HR 820 PP

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
209

HR 820 PP

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—
210

HR 820 PP

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.
211

HR 820 PP

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
212

HR 820 PP

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
213

HR 820 PP

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
214

HR 820 PP

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
215

HR 820 PP

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-
216

HR 820 PP

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;
217

HR 820 PP

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
218

HR 820 PP

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-
219

HR 820 PP

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
220

HR 820 PP

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
221

HR 820 PP

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.
222

HR 820 PP

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.
223

HR 820 PP

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
224

HR 820 PP

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
225

HR 820 PP

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-
226

HR 820 PP

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.—
227

HR 820 PP

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;
228

HR 820 PP

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
229

HR 820 PP

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.’’.
230

HR 820 PP

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.
231

HR 820 PP

HR 820 PP——2

HR 820 PP——3

HR 820 PP——4

HR 820 PP——5

HR 820 PP——6

HR 820 PP——7

HR 820 PP——8

HR 820 PP——9

HR 820 PP——10

HR 820 PP——11

HR 820 PP——12

HR 820 PP——13

HR 820 PP——14

HR 820 PP——15

HR 820 PP——16

HR 820 PP——17

HR 820 PP——18

HR 820 PP——19

HR 820 PP——20

HR 820 PP——21

HR 820 PP——22