`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 820 Public Print (PP)]

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 Stevenson-Wydler Technology 
Innovation Act of 1980 to enhance manufacturing technology development 
and transfer, to authorize appropriations for the Technology 
Administration of the Department of Commerce, including the National 
Institute of Standards and Technology, and for other purposes'', do 
pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National 
Competitiveness Act of 1994''.
    (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.
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.
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.

SEC. 102. FINDINGS.

    Congress finds and declares the following:
            (1) In an increasingly competitive world economy, the 
        companies and nations which lead in the rapid development, 
        adoption, and application of new technologies, and in the low-
        priced, high-quality manufacture of products based on those 
        technologies, will lead in economic growth, employment, and 
        high living standards.
            (2) While the United States remains the world leader in 
        science and invention, it has not done as well as it should in 
        manufacturing new products based on these innovations. This lag 
        and the unprecedented competitive challenge that the Nation has 
        faced from abroad have contributed to a drop in real wages, 
        living standards, and employment opportunities.
            (3) There is general agreement on which fields of 
        technology are critical for economic competitiveness through 
        the first decade of the next century, but the United States 
        Government must pursue a comprehensive strategy to ensure that 
        the appropriate research, development, and applications 
        activities and other reforms occur so these technologies are 
        readily available to United States manufacturers for 
        incorporation into products made in the United States.
            (4) Maintaining a highly competitive manufacturing base in 
        the United States is essential for economic prosperity and 
        national welfare and requires continuous development and 
        adoption of advanced manufacturing technologies that will 
        enable United States manufacturers to develop innovative 
        products rapidly and manufacture goods of the highest quality 
        at competitive prices.
            (5) While the private sector must take the lead in the 
        development, application, and manufacture of new technologies, 
        the Federal Government should--
                    (A) assist industry in the development of high-
                risk, long-term precommercial technologies which 
                promise large economic benefits for the Nation;
                    (B) support industry-led efforts to develop and 
                refine advanced manufacturing technologies, including 
                technologies which improve productivity and quality and 
                which build upon and enhance employee skills;
                    (C) work with States, the private sector, worker 
                organizations, and technical and professional societies 
                to help small- and medium-sized manufacturers 
                throughout the Nation to adopt best current 
                manufacturing technologies and practices, to improve 
                worker skills, to establish high-performance work 
                organizations, and to prepare, as appropriate, to adopt 
                the advanced computer-controlled manufacturing 
                technologies of the twenty-first century; and
                    (D) cooperate with industry and academia to help 
                create an advanced information infrastructure for the 
                United States.
            (6) In working with industry to promote the technological 
        leadership and economic growth of the United States, the 
        Federal Government also has a responsibility to consult with 
        business and labor leaders on industry's long-term 
        technological and skill needs, to monitor technological trends, 
        production process trends, and technology targeting efforts in 
        other nations, and generally to ensure that Federal technology 
        and industrial modernization programs help United States 
        industry to remain competitive and create good domestic jobs.
            (7) Technology-based products of the twenty-first century 
        should be developed incorporating the values of sustainable 
        development, including low material use, safety, recyclability, 
        and minimal pollution.
            (8) The Department of Commerce, and particularly its 
        Technology Administration and National Institute of Standards 
        and Technology, can effectively assist industry to speed the 
        development and utilization of new technologies, improve and 
        modernize manufacturing, adopt new methods of production, and 
        ensure a growing and healthy national industrial base and good 
        manufacturing jobs. To promote the long-term economic growth of 
        the Nation, these Department of Commerce programs should be 
        strengthened and expanded.

SEC. 103. PURPOSES.

    The purposes of this Act are to--
            (1) strengthen and expand the ability of Federal technology 
        programs, particularly those of the Department of Commerce, to 
        support industry-led and State-supported efforts to improve the 
        technological capabilities, manufacturing performance, 
        information infrastructure, and employment opportunities of the 
        United States;
            (2) promote and facilitate, particularly through the 
        Advanced Technology Program of the Department of Commerce, the 
        creation, development, and adoption of technologies that will 
        contribute significantly to United States economic 
        competitiveness, employment, high quality jobs, and prosperity;
            (3) develop a nationwide network of sources of 
        technological and industrial modernization advice for 
        manufacturers, particularly small and medium-sized firms, and 
        provide high quality, current information to that network;
            (4) encourage cooperation among Federal departments and 
        agencies to help companies, managers, and workers, in a 
        coordinated fashion, to take full advantage of advanced 
        manufacturing technologies, to improve productivity and 
        quality, and adopt advanced workplace practices which 
        successfully integrate technology and employees;
            (5) stimulate the flow of capital to business concerns 
        engaged principally in development or utilization of critical 
        technologies and other advanced manufacturing technologies;
            (6) ensure the widest possible application of high-
        performance computing and high-speed networking and aid United 
        States industry to develop an advanced national information 
        infrastructure; and
            (7) enhance and expand the core programs of the National 
        Institute of Standards and Technology.

SEC. 104. DEFINITIONS.

    For purposes of this Act--
            (1) the terms ``advanced manufacturing technology'', 
        ``advanced workplace practices'', ``modern technology'', and 
        ``sustainable economic growth'' have the meanings given such 
        terms, respectively, in section 4 of the Stevenson-Wydler 
        Technology Innovation Act of 1980, as amended by section 211(b) 
        of this Act;
            (2) the term ``critical technologies'' means technologies 
        identified as critical technologies pursuant to section 603(d) 
        of the National Science and Technology Policy, Organization, 
        and Priorities Act of 1976 (42 U.S.C. 6683(d));
            (3) the term ``Director'' means the Director of the 
        Institute;
            (4) the term ``Institute'' means the National Institute of 
        Standards and Technology;
            (5) the term ``Secretary'' means the Secretary of Commerce;
            (6) the term ``small business'' has the meaning given such 
        term in the Small Business Act;
            (7) the term ``source reduction'' has the meaning given 
        that term in section 6603 of the Pollution Prevention Act of 
        1990 (42 U.S.C. 13102);
            (8) the term ``State'' means any of the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, or any other territory or possession 
        of the United States;
            (9) the term ``Under Secretary'' means the Under Secretary 
        of Commerce for Technology; and
            (10) the term ``United States'' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States.

SEC. 105. OVERALL AUTHORIZATION LIMIT.

    Notwithstanding any other provision of this Act, the total amount 
authorized to be appropriated under this Act shall not exceed 
$1,900,000,000.

                        TITLE II--MANUFACTURING

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Manufacturing Technology and 
Extension Act of 1994''.

           Subtitle A--Manufacturing Technology and Extension

SEC. 211. MANUFACTURING AMENDMENTS TO THE STEVENSON-WYDLER TECHNOLOGY 
              INNOVATION ACT.

    (a) Amendments.--The Stevenson-Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3701 et seq.), as amended by section 213 of this Act, 
is further amended by adding after section 101 (as so redesignated by 
section 213 of this Act) the following new sections:

``SEC. 102. MANUFACTURING TECHNOLOGY.

    ``(a) Statement of Policy.--Congress declares that it is the policy 
of the United States that--
            ``(1) Federal agencies, particularly the Department of 
        Commerce, shall work with manufacturers in the United States 
        and labor to ensure that within 10 years of the date of 
        enactment of the National Competitiveness Act of 1994 the 
        United States is second to no other nation in the development, 
        deployment, and use of advanced manufacturing technologies;
            ``(2) all the major Federal research and development 
        agencies shall place a high priority on the development and 
        deployment of skill-based and advanced manufacturing 
        technologies, and shall work closely with manufacturers in the 
        United States and labor and with the Nation's universities to 
        develop and test those technologies; and
            ``(3) since the development of new skills in the existing 
        and entry workforce, and the development of new organizational 
        and managerial approaches, are integral parts of successfully 
        deploying advanced manufacturing technologies and related 
        technologies, advanced workplace practices should be developed 
        and deployed simultaneously and in a coordinated fashion with 
        the development and deployment of advanced manufacturing 
        technologies.
    ``(b) Role of the Department of Commerce.--The Department of 
Commerce, consistent with the policy declared in subsection (a), shall 
have primary responsibility in the Federal Government for commercial 
and industrial civilian technology and shall--
            ``(1) through the activities of the Technology 
        Administration, the Institute's laboratories, and the Advanced 
        Technology Program created under section 28 of the National 
        Institute of Standards and Technology Act (15 U.S.C. 278n), 
        work with manufacturers in the United States and labor and, as 
        appropriate, with other Federal departments and agencies to 
        help develop new generic advanced manufacturing technologies, 
        including technologies which build upon and enhance employee 
        skills and technologies which facilitate flexibility, agility, 
        and electronic integration in manufacturing enterprises;
             ``(2) through the Manufacturing Extension Partnership 
        established under section 24 of the National Institute of 
        Standards and Technology Act and through other activities of 
        the Department, assist the States and the private sector to 
        help manufacturers in the United States, especially small and 
        medium-sized manufacturing enterprises, to adopt modern 
        technologies and advanced workplace practices and, as 
        appropriate, advanced manufacturing technologies and equipment;
            ``(3) work with the private sector, other Federal 
        departments and agencies, State and local governments, and 
        educational institutions to--
                    ``(A) help develop advanced workplace practices, 
                improved supplier-customer relations, manufacturing 
                modernization and investment justification strategies, 
                and other steps which would accelerate the development, 
                deployment, and use of advanced manufacturing 
                technologies by United States companies; and
                    ``(B) evaluate foreign programs to modernize 
                manufacturing;
            ``(4) have primary responsibility in the Federal Government 
        in working with industry and labor and the States to develop 
        advanced manufacturing technologies and to promote and assist 
        the adoption and use of modern technologies, advanced 
        manufacturing technologies, and management techniques 
        throughout the United States; and
            ``(5) through the Under Secretary, develop measurements and 
        coordinate with appropriate Federal agencies to ensure that 
        Federal research and development expenditures are linked to the 
        economic needs of industry and the promotion of economic 
        growth.

``SEC. 103. MANUFACTURING ADVISORY COMMITTEE.

    ``(a) Establishment.--Subject to subsection (d), the Secretary 
shall establish a Manufacturing Advisory Committee (in this section 
referred to as the `Committee'), which shall be chaired by the 
Secretary and which shall provide advice to the Secretary and, as 
appropriate, to other Federal officials.
    ``(b) Functions.--The Committee shall--
            ``(1) collect and analyze information on the range of 
        factors which determine the success of United States-based 
        manufacturing industries, and particularly factors regarding 
        the development of advanced manufacturing technologies, the 
        deployment of modern technologies, and the application of 
        advanced workplace practices;
            ``(2) identify areas where appropriate cooperation between 
        the Federal Government and industry and labor, including 
        Government support for industry-led joint research and 
        development ventures and for manufacturing extension 
        activities, would enhance United States industrial 
        competitiveness, and provide advice and guidance for such 
        cooperative efforts;
            ``(3) provide guidance on what Federal policies and 
        practices are necessary to strengthen United States-based 
        manufacturing, particularly Federal policies and practices 
        regarding research budgets, interagency coordination and 
        initiatives, and technology transfer; and
            ``(4) generally develop recommendations for guiding Federal 
        agency and interagency activities related to United States-
        based manufacturing.
    ``(c) Membership and Procedures.--(1) The Committee shall be 
composed of 16 members, of whom--
            ``(A) 6 members shall be the Secretary, the Director of the 
        Office of Science and Technology Policy, the Secretary of 
        Defense, the Secretary of Energy, the Secretary of Labor, and 
        the Director of the National Science Foundation, or their 
        designees; and
            ``(B) 10 members shall, within 120 days after the date of 
        enactment of the National Competitiveness Act of 1994, be 
        appointed by the Secretary from the private manufacturing 
        industry, worker organizations, technical and professional 
        societies, State technology agencies, and academia.
At least two of the members appointed under subparagraph (B) shall be 
from small business.
    ``(2) The Secretary shall call the first meeting of the Committee 
within 30 days after the appointment of members is completed.
    ``(3) The Committee may use such personnel detailed from Federal 
agencies as may be necessary to enable it to perform its functions.
    ``(4) Nine members of the Committee shall constitute a quorum for 
the transaction of business.
    ``(5) Members of the Committee, other than full-time employees of 
the Federal Government, while attending meetings of the Committee or 
otherwise performing duties of the Committee while away from their 
homes or regular places of business, shall be allowed travel expenses 
in accordance with subchapter I of chapter 57 of title 5, United States 
Code.
    ``(6) The Committee, as appropriate, shall work with the Department 
of Commerce Technology Advisory Board and with other appropriate 
Federal advisory mechanisms to ensure integrated Federal-private 
consideration of technology and manufacturing policies and programs.
    ``(d) Secretarial Discretion.--Notwithstanding any other provision 
of this section, the Secretary shall have the discretion to decide 
whether to establish the Committee or create a more cost-effective way 
to achieve the goal of closer cooperation with industry. If the 
Secretary exercises such discretion and establishes an alternative 
mechanism, the Under Secretary shall make an effort to ensure the 
participation of socially and economically disadvantaged individuals 
(within the meaning of section 8(a) (5) and (6) of the Small Business 
Act, and including women) in the alternative mechanism.''.
    (b) Additional Definitions.--Section 4 of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 3703) is amended by adding 
at the end the following new paragraphs:
            ``(14) `Advanced manufacturing technology' means--
                     ``(A) numerically-controlled machine tools, 
                robots, automated process control equipment, 
                computerized flexible manufacturing systems, associated 
                computer software, and other technology for improving 
                manufacturing and industrial production of goods, 
                including biotechnology products, which advance the 
                state-of-the-art; or
                    ``(B) novel manufacturing techniques and processes 
                not previously generally available that improve 
                manufacturing quality, productivity, and practices, 
                including engineering design, quality assurance, 
                concurrent engineering, continuous process production 
                technology, inventory management, upgraded worker 
                skills, communications with customers and suppliers, 
                and promotion of sustainable economic growth.
            ``(15) `Modern technology' means the best available proven 
        technology, techniques, and processes appropriate to enhancing 
        the productivity of manufacturers or to promoting sustainable 
        economic growth.
            ``(16) `Advanced workplace practices' means innovations in 
        work organization and performance, including high-performance 
        workplace systems, flexible production techniques, quality 
        programs, continuous improvement, concurrent engineering, close 
        relations between suppliers and customers, widely diffused 
        decision-making and work teams, and effective integration of 
        production technology, worker skills and training, and 
        workplace organization.
            ``(17) `Sustainable economic growth' means economic growth 
        that enhances the national quality of life and preserves 
        environmental integrity.''.

SEC. 212. MANUFACTURING AMENDMENTS TO THE NATIONAL INSTITUTE OF 
              STANDARDS AND TECHNOLOGY ACT.

    (a) National Quality Laboratory; Manufacturing Extension 
Partnership.--The National Institute of Standards and Technology Act 
(15 U.S.C. 271 et seq.) is amended--
            (1) by redesignating sections 29 through 31 as sections 31 
        through 33, respectively;
            (2) by redesignating sections 23 and 24 as sections 29 and 
        30, respectively; and
            (3) by inserting after section 22 the following new 
        sections:

                     ``national quality laboratory

    ``Sec. 23. A National Quality Laboratory is established within the 
Institute, the purpose of which is to perform research and outreach 
activities to assist private sector quality efforts and to serve as a 
mechanism by which companies in the United States, universities and 
other interested parties, and the Institute can work together to 
advance quality management programs and to share and, as appropriate, 
develop manufacturing best practices.

                 ``manufacturing extension partnership

    ``Sec. 24. (a) There is established within the Institute a 
Manufacturing Extension Partnership (in this section referred to as the 
`Partnership'). The Secretary, acting through the Under Secretary and 
the Director, shall implement and coordinate the Partnership in 
accordance with the initial and 5-year plans prepared under subsection 
(h). The purpose of the Partnership is to link electronically and 
strengthen the Nation's manufacturing extension centers and activities 
in order to assist manufacturers in the United States, especially 
small- and medium-sized companies, to expand and accelerate the use of 
modern technologies, and to accelerate the development and use of 
advanced manufacturing technologies and advanced workplace practices.
    ``(b) The Partnership shall be a cooperative effort of the 
Department of Commerce, the States, manufacturers in the United States, 
labor, nonprofit organizations, and, as appropriate, other Federal 
agencies to provide a national system of manufacturing extension 
centers and technical services to United States companies, particularly 
small- and medium-sized manufacturers. The Partnership shall include--
            ``(1) Manufacturing Outreach Centers, as authorized under 
        subsection (c);
            ``(2) Regional Centers for the Transfer of Manufacturing 
        Technology and Local Manufacturing Offices, as established 
        under section 25, and the State Technology Extension Program, 
        as established under section 26;
            ``(3) the outreach network provided for under subsection 
        (d) and the clearinghouse system developed under subsection 
        (e); and
            ``(4) such technology and manufacturing extension centers 
        supported by other Federal departments and agencies, States, 
        industry, and nonprofit organizations as the Secretary 
        considers appropriate for inclusion in the Partnership.
    ``(c)(1) Government and private sector organizations, actively 
engaged in technology or manufacturing extension activities, may apply 
to the Secretary to be designated as Manufacturing Outreach Centers. 
Eligible organizations may include Federal, State, and local government 
agencies, their extension programs, and their laboratories; small 
business development centers; and appropriate programs run by 
professional and technical societies, worker organizations, industrial 
organizations, for-profit or nonprofit organizations, community 
development organizations, State universities and other universities, 
community colleges, and technical schools and colleges, including, 
where appropriate, vendor-supported demonstrations of production 
applications.
    ``(2) The purpose of such Manufacturing Outreach Centers shall be 
to--
            ``(A) disseminate technical and information services to 
        manufacturers in the United States, particularly small- and 
        medium-sized companies; and
            ``(B) strengthen direct assistance to small- and medium-
        sized manufacturers in the United States to expand and 
        accelerate the use of modern technologies and advanced 
        workplace practices.
    ``(3) The Secretary shall establish terms and conditions of 
participation in a Manufacturing Outreach Center, including 
qualifications of start-up programs as Manufacturing Outreach Centers, 
and may provide financial assistance, on a cost-shared basis and 
through competitive, merit-based review processes, to nonprofit or 
government participants throughout the United States to enable them to 
establish a Manufacturing Outreach Center.
    ``(4) Any Regional Center for the Transfer of Manufacturing 
Technology may apply to the Secretary to establish a Manufacturing 
Outreach Center, managed by or in cooperation with such Regional 
Center, if the Manufacturing Outreach Center would be located outside 
and would primarily serve an area outside the effective service area of 
such Regional Center. Funding for the establishment and management of 
such Manufacturing Outreach Center may be awarded to such Regional 
Center under this subsection, notwithstanding the restrictions of 
paragraph (6).
    ``(5) If a State plan for technology extension exists in a State 
where an applicant for financial assistance under this subsection is 
operating or plans to operate, the applicant shall demonstrate in its 
application that its proposal is compatible with such State plan.
    ``(6) If a Manufacturing Outreach Center is in or near a State 
which has a Regional Center for the Transfer of Manufacturing 
Technology, the Director shall, as appropriate, encourage the 
Manufacturing Outreach Center to cooperate with the Regional Center in 
coordinating its proposals and ongoing programs to serve manufacturers 
in the region. Manufacturing Outreach Centers may not concurrently be 
designated as Regional Centers for the Transfer of Manufacturing 
Technology under section 25.
    ``(7) Financial assistance may be awarded under this subsection for 
an initial period not to exceed 3 years and may, subject to successful 
evaluation by the Institute, be renewed for additional periods, not to 
exceed 3 years each. Such assistance may not at any time exceed 50 
percent of the operating costs and other costs of the Manufacturing 
Outreach Center, as defined by regulation.
    ``(d)(1) The Department of Commerce shall provide for an 
instantaneous, interactive electronic communications network (in this 
section referred to as the `outreach network') to serve the 
Partnership, to facilitate effective and efficient interaction within 
it, and to permit the collection and dissemination in electronic form, 
in a timely and accurate manner, of information described in subsection 
(e). The outreach network shall, wherever practicable, make use of 
existing public and private computer networks, data bases, and 
electronic bulletin boards. The design, configuration, acquisition 
plan, and operating policies, including user fees and appropriate 
electronic access for public and private information suppliers and 
users, of the outreach network shall be included in the 5-year plan 
prepared under subsection (h)(2).
    ``(2) Except as provided in this section, the outreach network 
established under paragraph (1) shall be designed and configured in a 
manner that will enable interoperability with networks and technologies 
developed under the National High-Performance Computing Program 
described in section 101 of the High-Performance Computing Act of 1991 
(15 U.S.C. 5511). The Secretary shall also, as appropriate, coordinate 
activities under this subsection with the relevant activities of other 
Federal agencies, particularly the agile manufacturing/enterprise 
integration activities of the Department of Defense.
    ``(e)(1) The Secretary, acting through the Under Secretary, shall 
develop a clearinghouse system, using appropriate components of the 
Technology Administration and other public and private sector 
information providers and carriers, where appropriate, to--
            ``(A) identify expertise and acquire information, 
        appropriate to the purpose of the Partnership stated in 
        subsection (a), from all available Federal sources, and where 
        appropriate from other sources, providing assistance where 
        necessary in making such information electronically available 
        and compatible with the outreach network established under 
        subsection (d);
            ``(B) ensure ready access by manufacturers, governmental 
        agencies, and nonprofit organizations in the United States to 
        the most recent relevant available such information and 
        expertise;
            ``(C) ensure that common standards of interconnection are 
        utilized by the outreach network and the clearinghouse to allow 
        maximum interoperability and usership; and
            ``(D) to the extent practicable, inform potential users of 
        the availability of such information.
    ``(2) The clearinghouse shall include information available 
electronically regarding--
            ``(A) activities of Manufacturing Outreach Centers, 
        Regional Centers for the Transfer of Manufacturing Technology, 
        the State Technology Extension Program, and the users of the 
        outreach network;
            ``(B) domestic and international standards from the 
        Institute and private sector organizations and other export 
        promotion information, including conformity assessment 
        requirements and procedures;
            ``(C) the Malcolm Baldrige National Quality Award program, 
        and quality principles and standards;
            ``(D) manufacturing processes that minimize waste and 
        negative environmental impact;
            ``(E) advanced workplace practices;
            ``(F) federally funded technology development and transfer 
        programs;
            ``(G) responsibilities assigned to the Clearinghouse for 
        State and Local Initiatives on Productivity, Technology, and 
        Innovation;
            ``(H) how to access data bases and services;
            ``(I) skills training, particularly for production workers, 
        that is available through trade and professional organizations, 
        federally supported programs, State resources, private 
        industry, or other organizations; and
            ``(J) other subjects relevant to the ability of companies 
        to manufacture and sell competitive products throughout the 
        world.
    ``(f) In carrying out this section, the Department of Commerce 
shall take into consideration the following principles:
            ``(1) The Partnership and the outreach network provided for 
        under subsection (d) shall be established and operated through 
        cooperation and co-funding among Federal, State, and local 
        governments, other public and private contributors, and end 
        users.
            ``(2) The Partnership and the outreach network shall 
        utilize and leverage, to the extent practicable, existing 
        organizations, data bases, electronic networks, facilities, and 
        capabilities, and shall be designed to complement rather than 
        supplant State and local programs.
            ``(3) The Partnership should, to the extent practicable, 
        involve key stakeholders at all levels in the planning and 
        governance of modernization strategies; concentrate on 
        assisting local clusters of firms; assist rural as well as 
        urban manufacturers; promote collaborative learning and 
        cooperative action among manufacturers; link industrial 
        modernization programs tightly to existing and future Federal 
        training initiatives, including those for youth apprenticeship 
        programs and for assisting other workers; encourage small firms 
        to seek modernization services by working with major 
        manufacturers; encourage small firms, as appropriate, to select 
        manufacturing equipment and practices which build upon and 
        expand the skills of their employees; identify and honor best 
        practices by firms and the programs that support them, 
        including both technology and workplace practices; provide 
        funding based on performance and ensure rigorous evaluation of 
        extension services; as appropriate, coordinate Federal programs 
        that support manufacturing modernization; work with Federal, 
        State, local, and private organizations so that Manufacturing 
        Outreach Centers and Regional Centers for the Transfer of 
        Manufacturing Technology can provide referrals to other 
        important business services, such as assistance with financing, 
        training, and exporting, and contribute to local business 
        climates supportive of high-performance manufacturing.
            ``(4) The Partnership and the outreach network provided for 
        under subsection (d) shall be subject to all applicable 
        provisions of law for the protection of trade secrets and 
        business confidential information.
            ``(5) Local or regional needs should determine the 
        management structure and staffing of the Manufacturing Outreach 
        Centers. The Partnership shall strive for geographical balance 
        and for balance between urban and rural recipients, with the 
        ultimate goal of access for all United States manufacturers.
            ``(6) Manufacturing Outreach Centers should have the 
        capability to deliver outreach services directly to 
        manufacturers; actively work with, rather than supplant, the 
        private sector; help firms assess needs regarding technology, 
        workplace practices, and training; and to the extent 
        practicable, maximize the exposure of United States 
        manufacturers to demonstrations of modern technologies in use.
            ``(7) Manufacturing Outreach Centers shall focus, where 
        possible, on the deployment of flexible manufacturing 
        technologies and practices applicable to both defense and 
        commercial applications and on opportunities to modernize 
        operations in ways which improve productivity, reduce waste and 
        pollution, and increase energy efficiency.
            ``(8) The Department of Commerce shall develop mechanisms 
        for--
                    ``(A) soliciting the perspectives of manufacturers 
                using the services of the Manufacturing Outreach 
                Centers and Regional Centers for the Transfer of 
                Manufacturing Technology;
                    ``(B) assisting in the training of technology 
                extension agents and in helping them disseminate 
                information on modern manufacturing technologies, 
                including technologies for source reduction, and 
                advanced workplace practices; and
                    ``(C) rigorously evaluating the effectiveness of 
                the Manufacturing Outreach Centers and other components 
                of the Partnership.
            ``(9) This Act does not supersede, modify, or otherwise 
        alter the rights and obligations of employers, employees, and 
        labor organizations as set forth in the National Labor 
        Relations Act and the Railway Labor Act or in any collective 
        bargaining agreement entered into by parties covered by those 
        Acts.
    ``(g)(1) The Regional Centers for the Transfer of Manufacturing 
Technology and Manufacturing Outreach Centers shall, as appropriate, 
make available source reduction and energy conservation assessments to 
interested manufacturers in the United States. These assessments shall 
assist such interested manufacturers in identifying opportunities for 
energy conservation and source reduction, and thus reduce operating 
costs, through either improvement in manufacturing processes or the 
purchase of new equipment.
    ``(2) The Secretary is authorized to work with other appropriate 
Federal officials and other parties to provide employees of Regional 
Centers for the Transfer of Manufacturing Technology and Manufacturing 
Outreach Centers with the training needed to carry out the assessments 
specified in paragraph (1).
    ``(h)(1) Within 6 months after the date of enactment of the 
National Competitiveness Act of 1994, the Secretary, through the Under 
Secretary and Director and after consulting with the private sector, 
shall submit an initial plan for the implementation of this section to 
Congress--
            ``(A) describing how the Secretary will carry out the 
        responsibility to create, operate, and support the Partnership 
        and the outreach network;
            ``(B) establishing criteria and procedures, consistent with 
        the requirements of this section, for--
                    ``(i) the selection of organizations to receive 
                Department of Commerce services or financial assistance 
                as part of the Partnership, including qualifications 
                and training of technology extension agents;
                    ``(ii) access to services provided by participants 
                in the Partnership and to information available through 
                the outreach network servicing the Partnership; and
                    ``(iii) the annual evaluation of the Partnership in 
                achieving the purposes of this section; and
            ``(C) evaluating the need for and the benefits of a 
        National Conference of States on Technology Extension, similar 
        in structure to the National Conference on Weights and 
        Measures, and, if the Secretary determines that such a 
        Conference is advisable, developing, in consultation with the 
        States and other interested parties, a plan for the 
        establishment, operation, funding, and evaluation of such a 
        Conference.
    ``(2)(A) Within 1 year after the date of enactment of the National 
Competitiveness Act of 1994, the Secretary, through the Under Secretary 
and Director, shall prepare and submit to the Congress a 5-year plan 
for implementing the Partnership and the outreach network and 
clearinghouse established under subsections (d) and (e), respectively, 
of this section.
    ``(B) Such 5-year plan shall address--
            ``(i) effective mechanisms for providing operating funds 
        for the maintenance and use of the outreach network established 
        under subsection (d), including user fees, industry support, 
        and continued Federal investment;
            ``(ii) the future operation and evolution of the outreach 
        network, including its relationship with other public or 
        private information services;
            ``(iii) how to protect the copyrights of material 
        distributed over the outreach network; and
            ``(iv) appropriate policies to ensure the security of 
        proprietary information that might be available on the outreach 
        network and to protect the privacy of users of the outreach 
        network.
    ``(C) Such 5-year plan shall identify appropriate methods for 
expanding the Partnership in a geographically balanced manner. Such 5-
year plan shall include a detailed implementation plan and cost 
estimates and shall take into consideration and build on the report 
submitted under paragraph (1). In the preparation of such 5-year plan, 
the Secretary shall provide an opportunity for public comment, and the 
plan submitted to Congress shall include a summary of comments 
received. Any new types of activities proposed by such plan may not be 
implemented until 90 days after its submission to the Congress.
    ``(3) Beginning with the first year after submission of the 5-year 
plan under paragraph (2), the Secretary shall annually report to the 
Congress, at the time of the President's annual budget request to 
Congress, on--
            ``(A) progress made in achieving the purposes of the 
        Partnership described in subsection (a), using criteria and 
        procedures established under paragraph (1)(B)(iii) of this 
        subsection;
            ``(B) changes proposed to the 5-year plan;
            ``(C) performance in adhering to schedules; and
            ``(D) any recommendations for legislative changes necessary 
        to enhance the Partnership.
The report under this paragraph submitted at the end of the fourth year 
of operation of the Partnership shall include recommendations on 
whether to terminate the Partnership or extend it for an additional 
period not to exceed 5 years.''.
    (b) Definitions.--The National Institute of Standards and 
Technology Act (15 U.S.C. 271 et seq.) is amended by inserting after 
section 1 the following new section:
    ``Sec. 1A. As used in this Act--
            ``(1) the terms `advanced manufacturing technology', 
        `modern technology', `advanced workplace practices', and 
        `sustainable economic growth' have the meanings given such 
        terms in section 4 of the Stevenson-Wydler Technology 
        Innovation Act;
            ``(2) the term `independent research organizations' means 
        nonprofit organizations organized primarily for the purpose of 
        conducting or managing research activities;
            ``(3) the term `source reduction' has the meaning given 
        that term in section 6603 of the Pollution Prevention Act of 
        1990 (42 U.S.C. 13102);
            ``(4) the term `State' means any of the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, or any other territory or possession 
        of the United States; and
            ``(5) the term `United States' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States.''.

SEC. 213. ADDITIONAL AMENDMENTS TO THE STEVENSON-WYDLER TECHNOLOGY 
              INNOVATION ACT.

    The Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3701 et seq.) is amended--
            (1) by inserting after section 4 the following new title 
        heading:

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

            (2) by redesignating section 5 as section 101;
            (3) by redesignating sections 6 through 10 as sections 105 
        through 109, respectively;
            (4) by striking section 21;
            (5) by redesignating sections 16, 17, 18, 19, 20, and 22 as 
        sections 110 through 115, respectively;
            (6) by inserting after section 115 (as redesignated by 
        paragraph (5) of this subsection) the following new title 
        heading:

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

            (7) by redesignating sections 11 through 15 as sections 201 
        through 205, respectively;
            (8) by redesignating section 23 as section 206;
            (9) in section 4--
                    (A) by striking ``section 5'' and inserting in lieu 
                thereof ``section 101'';
                    (B) by striking ``section 5(b)(1)'' and inserting 
                in lieu thereof ``section 101(b)(1)'';
                    (C) in paragraphs (4) and (6), by striking 
                ``section 6'' and ``section 8'' each place they appear 
                and inserting in lieu thereof ``section 105'' and 
                ``section 107'', respectively; and
                    (D) in paragraph (13), by striking ``section 6'' 
                and inserting in lieu thereof ``section 105'';
            (10) in section 108 (as redesignated by paragraph (3) of 
        this subsection) by striking ``section 6(a)'' and inserting in 
        lieu thereof ``section 106(a)''; by striking ``section 6(b)'' 
        and inserting in lieu thereof ``section 106(b)''; and by 
        striking ``section 6(c)(3)'' and inserting in lieu thereof 
        ``section 106(c)(3)'';
            (11) in section 109(d) (as redesignated by paragraph (2) of 
        this subsection) by striking ``section 7, 9, 11, 15, 17, or 20 
        of'';
            (12) in section 201(i) (as redesignated by paragraph (7) of 
        this subsection) by inserting ``loan, lease, or'' after 
        ``may''; and by inserting ``Actions taken under this subsection 
        shall not be subject to Federal requirements on the disposal of 
        property.'' after ``activities.'';
            (13) in section 202(b) (as redesignated by paragraph (7) of 
        this subsection) by striking ``section 14(a)(1)(B) (i), (ii), 
        and (iv)'' and inserting in lieu thereof ``section 204(a)(1)(B) 
        (i), (ii), and (iv)'';
            (14) in section 204(a)(1) (as redesignated by paragraph (7) 
        of this subsection) by striking ``section 12'' and inserting in 
        lieu thereof ``section 202'';
            (15) in section 115 (as redesignated by paragraph (5) of 
        this subsection) by striking ``Act (other than sections 11, 12, 
        and 13)'' and inserting in lieu thereof ``title'';
            (16) in section 206 (as redesignated by paragraph (7) of 
        this subsection)--
                    (A) by striking ``section 12(d)(2)'' in the 
                introductory matter of subsection (a) and inserting in 
                lieu thereof ``section 202(d)(2)'';
                    (B) by striking ``section 11(b)'' in subsection 
                (a)(2) and inserting in lieu thereof ``section 
                201(b)''; and
                    (C) by striking ``section 6(d)'' in subsection (b) 
                and inserting in lieu thereof ``section 105(d)'';
            (17) in section 112 (as redesignated by paragraph (5) of 
        this subsection)--
                    (A) in the section heading, by striking 
                ``CONFERENCE'' and inserting in lieu thereof 
                ``CONFERENCES'';
                    (B) by striking ``Not later than'' through ``shall 
                convene a conference'' and inserting in lieu thereof 
                ``The Secretary, through the Under Secretary, in 
                consultation with other appropriate officials, may 
                convene conferences''; and
                    (C) by striking ``such conference shall'' and in 
                insert in lieu thereof ``any such conferences shall, 
                whenever appropriate,'';
            (18) by adding at the end of section 201 (as redesignated 
        by paragraph (7) of this subsection) the following new 
        subsection:
    ``(j) Additional Technology Transfer Mechanisms.--In addition to 
the technology transfer mechanisms set forth in this section and 
section 202, the heads of Federal departments and agencies also may 
transfer technologies through the technology transfer, extension, and 
deployment programs of the Department of Commerce and the Department of 
Defense.''; and
            (19) in section 101(c) (as redesignated by paragraph (2) of 
        this subsection)--
                    (A) by striking ``and'' at the end of paragraph 
                (14);
                    (B) by striking the period at the end of paragraph 
                (15) and inserting in lieu thereof ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(16) engage in joint projects with any person or persons on 
matters within the authority of the Department of Commerce, accept 
temporary personnel from industrial partners, and receive cash 
donations in the course of such joint projects, and in conjunction with 
the planning and operation of such joint projects hold private meetings 
of matters of mutual interest with groups of interested persons, in 
order to protect sensitive information about United States industry and 
to ensure industry participation in such joint projects.''.

SEC. 214. MANUFACTURING TECHNOLOGY CENTERS.

    (a) Amendments.--(1) Section 25(a) of the National Institute of 
Standards and Technology Act (15 U.S.C. 278k(a)) is amended by striking 
``and'' at the end of paragraph (4); by striking the period at the end 
of paragraph (5) and inserting in lieu thereof a semicolon; and by 
inserting after paragraph (5) the following new paragraphs:
            ``(6) the active dissemination of information on advanced 
        workplace practices and available education and training 
        programs, and the encouragement of companies to train workers 
        in the effective use of modern technologies and advanced 
        manufacturing technologies; and
            ``(7) demonstration projects in which Centers work with 
        States, local governments, community development organizations, 
        worker and business organizations, and community banks to 
        create a business climate supportive of high-performance 
        manufacturing.''.
    (2) Section 25(b) of the National Institute of Standards and 
Technology Act (15 U.S.C. 278k(b)) is amended by striking ``and'' at 
the end of paragraph (2); by redesignating paragraph (3) as paragraph 
(4); and by inserting after paragraph (2) the following new paragraph:
            ``(3) assessments of client companies' modernization needs, 
        assistance in implementing quality processes, advice on 
        pollution minimization and source reduction, and, where needed, 
        cooperation with training institutions to ensure that 
        employees, particularly production workers, receive training in 
        the most effective use of modern technologies and advanced 
        workplace practices; and''.
    (3) Section 25(c) of the National Institute of Standards and 
Technology Act (15 U.S.C. 278k(c)) is amended--
            (A) in paragraph (1) by striking ``for a period not to 
        exceed six years''; and
            (B) in paragraph (5) by striking ``which are designed'' and 
        all that follows through the period at the end of the paragraph 
        and inserting in lieu thereof ``to a maximum of one-third 
        Federal funding. Each Center which receives financial 
        assistance under this section shall be evaluated during its 
        sixth year of operation, and at least triennially thereafter as 
        the Secretary considers appropriate, by an evaluation panel 
        appointed by the Secretary in the same manner as was the 
        evaluation panel previously appointed. The Secretary shall not 
        provide funding for additional years of the Center's operation 
        unless the most recent evaluation is positive and the Secretary 
        finds that continuation of funding furthers the purposes of 
        this section.''.
    (4) Section 25 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278k) is amended by adding at the end the 
following new subsections:
    ``(e) In addition to any assistance provided or contracts entered 
into with a Center under this section, the Director is authorized to 
make separate and smaller awards, through a competitive process, to 
nonprofit organizations which wish to work with a Center. Such awards 
shall be for the purpose of enabling those organizations to provide 
outreach services, in collaboration with the Center, to manufacturers 
located in parts of the region served by the Center which are not 
easily accessible to the Center and which are not served by any other 
manufacturing outreach center. Organizations which receive such awards 
shall be known as Local Manufacturing Offices. In reviewing 
applications, the Director shall consider the needs of rural as well as 
urban manufacturers. No single award for a Local Manufacturing Office 
shall be for more than 3 years, awards shall be renewable through the 
competitive awards process, and no award shall be made unless the 
applicant provides matching funds at least equal to the amount received 
under this subsection.
    ``(f) In carrying out this section, the Director shall coordinate 
his efforts with the plans for the Manufacturing Extension Partnership 
established under section 24.''.

SEC. 215. STATE TECHNOLOGY EXTENSION PROGRAM.

    (a) Establishment.--Section 26(a) of the National Institute of 
Standards and Technology Act (15 U.S.C. 278l(a)) is amended--
            (1) by inserting after ``(a)'' the following new sentence: 
        ``There is established within the Institute a State Technology 
        Extension Program.''; and
            (2) by inserting ``through that Program'' after ``technical 
        assistance''.
    (b) Assistance Provided By Program.--Section 26 of the National 
Institute of Standards and Technology Act (15 U.S.C. 278l) is amended 
by adding at the end the following new subsection:
    ``(c) In addition to the general authorities listed in subsection 
(b), the State Technology Extension Program also shall, through merit-
based competitive review processes and to the extent provided in 
advance in appropriations Acts--
            ``(1) make awards to States and conduct workshops, pursuant 
        to section 5121(b) of the Omnibus Trade and Competitiveness Act 
        of 1988 (15 U.S.C. 278l note) in order to help States improve 
        their planning and coordination of technology extension 
        activities;
            ``(2) assist States, including States which historically 
        have had no manufacturing or technology extension programs or 
        only small programs, to plan, develop, and coordinate such 
        programs and to help bring those State programs to a level of 
        performance where they can provide the full range of 
        manufacturing extension services required by their 
        manufacturers or, as appropriate, apply successfully for awards 
        to establish Manufacturing Outreach Centers, Regional Centers 
        for the Transfer of Manufacturing Technology, or both;
            ``(3) support industrial modernization demonstration 
        projects to help States create networks among small 
        manufacturers for the purpose of facilitating technical 
        assistance, group services, and improved productivity and 
        competitiveness;
            ``(4) support State efforts to develop and test innovative 
        ways to help small- and medium-sized manufacturers in the 
        United States improve their technical capabilities, including, 
        as appropriate, State contracts with private-sector technology 
        transfer companies to provide technology assistance and 
        development services that are beyond the current capacity of a 
        given State's industrial extension activities;
            ``(5) support State efforts designed to help small- and 
        medium-sized manufacturers in rural as well as urban areas 
        improve and modernize their technical capabilities, including, 
        as appropriate, interstate efforts to achieve such end;
            ``(6) support State efforts to assist interested small 
        defense manufacturing firms to convert their production to 
        nondefense or dual-use purposes;
            ``(7) support planning for worker technology education 
        programs in the States at institutions such as research 
        universities, community colleges, technical and professional 
        societies, labor education centers, labor-management 
        committees, and worker organizations in production technologies 
        critical to the Nation's future, with an emphasis on high-
        performance work systems, the skills necessary to use advanced 
        manufacturing system well, and best production practice; and 
        support on-the-job training programs in the States to build and 
        enhance the skills of employees, particularly production 
        workers, in small- and medium-sized manufacturers; and
            ``(8) help States develop programs to train personnel who 
        in turn can provide technical skills to managers and workers of 
        manufacturing firms.''.

SEC. 216. REPORT ON OPTIONS FOR ACCELERATING THE ADOPTION OF NEW 
              MANUFACTURING EQUIPMENT.

    Within 1 year after the date of enactment of this Act, the 
Secretary, acting through the Under Secretary, shall submit to Congress 
a report on--
            (1) the degree to which United States manufacturers have 
        difficulty obtaining financing for the purpose of purchasing 
        equipment needed to implement advanced manufacturing technology 
        and modernize operations;
            (2) the policies and practices followed in other 
        industrialized countries to help manufacturers obtain financing 
        for modernization; and
            (3) the advantages, disadvantages, and costs of major 
        options by which the Federal Government might help stimulate 
        the flow of capital to manufacturers and thus accelerate 
        industrial modernization, including--
                    (A) creation of a Government-sponsored enterprise 
                to stimulate the flow of capital to manufacturing;
                    (B) increasing technical advice to banks and other 
                financial institutions, perhaps through the 
                Manufacturing Extension Partnership in order to 
                increase their ability to judge whether or not 
                individual manufacturers have sound modernization 
                plans;
                    (C) cooperation between extension activities 
                supported under the Manufacturing Extension Partnership 
                and manufacturing equipment leasing firms in order to 
                provide manufacturers with additional information or 
                equipment leasing options; and
                    (D) tax incentives.

     Subtitle B--National Science Foundation Manufacturing Programs

SEC. 221. NATIONAL SCIENCE FOUNDATION MANUFACTURING PROGRAMS.

    (a) In General.--The Director of the National Science Foundation, 
after, as appropriate, consultation with the Secretary, the Under 
Secretary, and the Director, shall--
            (1) work with United States companies to identify areas of 
        research in advanced manufacturing technologies and advanced 
        workplace practices that offer the potential to improve United 
        States productivity, competitiveness, and employment;
            (2) support research at United States universities to 
        improve advanced manufacturing technologies and advanced 
        workplace practices; and
            (3) work with the Technology Administration of the 
        Department of Commerce and the Institute and, as appropriate, 
        other Federal agencies to accelerate the transfer to United 
        States companies of manufacturing research and innovations 
        developed at universities.
    (b) Engineering Research Centers and Industry/University 
Cooperative Research Centers.--The Director of the National Science 
Foundation shall strengthen and expand the number of Engineering 
Research Centers and strengthen and expand the Industry/University 
Cooperative Research Centers Program with the goals of increasing the 
engineering talent base versed in technologies and workplace practices 
critical to the Nation's future, with emphasis on advanced 
manufacturing technologies, and of advancing fundamental engineering 
knowledge in these technologies. At least one Engineering Research 
Center shall have a research and education focus on the concerns of 
United States manufacturers, including small- and medium-sized 
manufacturers that are trying to modernize their operations. Awards 
under this subsection shall be made on a competitive, merit review 
basis. Such awards may include support for acquisition of 
instrumentation, equipment, and facilities related to the research and 
education activities of the Engineering Research Centers and support 
for undergraduate students to participate in the activities of the 
Engineering Research Centers.
    (c) Graduate Traineeships.--The Director of the National Science 
Foundation, in consultation with the Secretary, may establish a program 
to provide traineeships to United States citizens or permanent resident 
aliens who are graduate students at institutions of higher education 
within the United States who choose to pursue masters or doctoral 
degrees in manufacturing or industrial engineering. The Director of the 
National Science Foundation shall make an effort to ensure the 
provision of traineeships under this subsection to socially and 
economically disadvantaged individuals (within the meaning of section 
8(a) (5) and (6) of the Small Business Act, and including women).
    (d) Manufacturing Managers in the Classroom Program.--The Director 
of the National Science Foundation, in consultation with the Secretary, 
may establish a program to provide fellowships, on a cost-shared basis, 
to individuals from industry with experience in manufacturing to serve 
for 1 or 2 years as instructors in manufacturing at 2-year community 
and technical colleges in the United States. In selecting fellows, the 
Director of the National Science Foundation shall place special 
emphasis on supporting individuals who not only have expertise and 
practical experience in manufacturing but who also will work to foster 
cooperation between 2-year colleges and nearby manufacturing firms.
    (e) Programs To Teach Total Quality Management.--The Director of 
the National Science Foundation, in consultation with the Secretary, 
the Under Secretary, and the Director, may establish a program to 
develop innovative curricula, courses, and materials for use by 
institutions of higher education for instruction in total quality 
management and related management practices, in order to help improve 
the productivity of United States companies.
    (f) Small Manufacturers Renewal and Training.--(1) The Director of 
the National Science Foundation, acting in cooperation with the 
Director, shall establish and carry out a pilot program, known as the 
Small Manufacturers Renewal and Training Program in this subsection 
referred to as the ``Program''), to award grants to eligible 
partnerships for internship activities under this section. Partnerships 
between engineering colleges and manufacturing extension centers are 
eligible to apply for grants under the Program and be designated as 
SMaRT Partnerships. The Director of the National Science Foundation 
shall establish requirements for proposals for funding under the 
Program, for activities undertaken by SMaRT Partnerships with such 
funding, and for reporting by SMaRT Partnerships and other persons 
participating in the Program, and criteria for selecting proposals, 
including economic need.
            (2) Each SMaRT Partnership receiving a grant under the 
        Program shall use such grant funds to sponsor qualified 
        engineering students to work as interns with eligible small 
        manufacturers, especially very small manufacturers, by paying 
        the host company the Federal share of the intern's wages, not 
        to exceed the Federal minimum wage.
            (3) A small manufacturer shall be eligible to host interns 
        under the Program only for manufacturing operations in the 
        United States, shall provide adequate supervision to each 
        intern, and shall use funds provided under the Program only to 
        pay wages to the intern that supplement the host company share 
        of the intern's wages, not be less than the Federal minimum 
        wage. No company shall be eligible to receive funding in excess 
        of 2 years' wages at the Federal minimum wage.

                    TITLE III--CRITICAL TECHNOLOGIES

SEC. 301. DEVELOPMENT OF PLAN FOR THE ADVANCED TECHNOLOGY PROGRAM.

    The Secretary, acting through the Under Secretary and the Director, 
shall, within 6 months after the date of enactment of this Act, submit 
to Congress a plan for the expansion of the Advanced Technology Program 
established under section 28 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278n), with specific consideration given to--
            (1) closer coordination and cooperation with the Advanced 
        Research Projects Agency and other Federal research and 
        development agencies as appropriate;
            (2) establishment of temporary staff positions that can be 
        filled by industrial or technical experts for a period of 1 to 
        2 years;
            (3) ensuring that the Advanced Technology Program will have 
        a meaningful impact on the utilization of a broad range of 
        critical technologies and on the refinement of advanced 
        manufacturing technologies;
            (4) changes that may be needed when annual funds available 
        for grants under the Advanced Technology Program reach levels 
        of $200,000,000 and $500,000,000; and
            (5) any additional administrative steps that may be 
        necessary for the Advanced Technology Program to support large-
        scale joint research and development ventures.

SEC. 302. LARGE-SCALE RESEARCH AND DEVELOPMENT CONSORTIA.

    Section 28 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278n) is amended by adding at the end the following new 
subsection:
    ``(k) In addition to the general authority under this section to 
provide financial assistance to joint ventures, the Secretary, through 
the Director, also may, as permitted by levels of authorizations and 
appropriations, provide financial support for up to 7 years to large-
scale joint ventures requesting $20,000,000 or more a year in 
Department of Commerce funds. The Secretary may work with industrial 
groups to develop such proposed large-scale joint ventures and shall 
give preference to proposals which represent a broad spectrum of 
companies for a given industry and which focus either on speeding the 
commercialization of important new technologies or on accelerating the 
development, testing, and deployment of valuable new process 
technologies and workplace practices. The Secretary and Director, as 
appropriate, shall obtain independent technical review of industry 
proposals submitted under this subsection.''.

SEC. 303. TECHNICAL AMENDMENTS.

    (a) Amendments To the National Institute of Standards and 
Technology Act.--Section 28 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278n), as amended by section 302 of this Act, 
is further amended--
            (1) by adding at the end of subsection (a), the following 
        new sentence: ``The Secretary, acting through the Director, 
        shall ensure that the principal economic benefits of the 
        Program accrue to the economy of the United States.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)(B), by striking ``or 
                contracts'' and inserting in lieu thereof ``contracts, 
                and, subject to the last sentence of this subsection, 
                other transactions'';
                    (B) strike paragraph (1)(B)(ii) and replace with: 
                ``participation in such joint ventures, if the 
                Secretary, acting through the Director, determines 
                participation to be appropriate and if the joint 
                venture as a whole agrees to pay at least half of the 
                total costs of such joint ventures during the 
                participation period, which shall not extend beyond 5 
                years,'';
                    (C) in paragraph (2) by striking ``and cooperative 
                agreements'' and inserting in lieu thereof 
                ``cooperative agreements, and, subject to the last 
                sentence of this subsection, other transactions''; and
                    (D) by adding after paragraph (4) the following: 
                ``The authority under paragraph (1)(B) and paragraph 
                (2) to enter into other transactions shall apply only 
                if the Secretary, acting through the Director, 
                determines that standard contracts, grants, or 
                cooperative agreements are not feasible or appropriate, 
                and only when other transaction instruments incorporate 
                terms and conditions that reflect the use of generally 
                accepted commercial accounting and auditing 
                practices.'';
                    (3) in subsection (d)(3), by striking 
                ``$2,000,000''; and inserting in lieu thereof 
                ``$3,000,000''.
                    (4) by adding at the end the following new 
                subsection: ``(1) Notwithstanding subsections 
                (b)(1)(B)(ii) and (d)(3), the Director may grant an 
                extension beyond the deadlines established under those 
                subsections for joint venture and single applicant 
                awardees to expend Federal funds to complete their 
                projects, if such extension may be granted with no 
                additional cost to the Federal Government.''.
    (b) United States Joint Ventures.--(1) Section 28(d)(11)(A) of the 
National Institute of Standards and Technology Act (15 U.S.C. 
278n(d)(11)(A)) is amended by striking the period at the end of the 
first sentence and inserting in lieu thereof the following: ``or any 
other person otherwise eligible to participate in an eligible joint 
venture, as agreed by the parties, receiving funding under any 
particular award, notwithstanding the requirements of section 202 (a) 
and (b) of title 35, United States Code.''.
    (2) The amendments made by sections 303 (a) and (b) shall be 
effective only with respect to assistance for which solicitations for 
proposals are made after the date of enactment of this Act or October 
1, 1994, whichever occurs later.
    (c) Amendments To the American Technology Preeminence Act of 
1991.--(1) Section 201(d) of the American Technology Preeminence Act of 
1991 (15 U.S.C. 278n note) is amended by adding at the end the 
following new sentence: ``In the case of the amendment made by 
subparagraph (A) of subsection (c)(6), such amendment shall be 
effective as of the date of enactment of the paragraph stricken by such 
subparagraph.''.
    (2) Section 507 of the American Technology Preeminence Act of 1991 
(15 U.S.C. 3717) is repealed.
    (d) Amendments To the National Science and Technology Policy, 
Organization, and Priorities Act.--(1) Title IV of the National Science 
and Technology Policy, Organization, and Priorities Act of 1976 (42 
U.S.C. 6651) is amended to read as follows:

          ``TITLE IV--NATIONAL SCIENCE AND TECHNOLOGY COUNCIL

    ``Sec. 401. There is established a National Science and Technology 
Council (hereafter in this title referred to as the `Council').
    ``Sec. 402. Within 30 days after the date of enactment of the 
National Competitiveness Act of 1994, the President shall submit to 
Congress a report that outlines the composition and functions of the 
Council.
    ``Sec. 403. (a) The Council shall assume the responsibilities and 
authorities of the Federal Coordinating Council for Science, 
Engineering, and Technology, the National Space Council, and the 
National Critical Materials Council.
    ``(b) Executive departments and agencies shall make resources, 
including, but not limited to, personnel, office support, and printing, 
available to the Council.
    ``(c) The Council is authorized to establish such committees and 
working groups as it may require.''.
    (2) The Federal Coordinating Council for Science, Engineering, and 
Technology established by Public Law 94-282 and by Executive Order 
12039, the National Space Council established by Public Law 100-685 and 
Executive Order 12675, and the National Critical Materials Council 
established by Public Law 98-373 are hereby abolished.
    (3) Section 207(c) of the National Science and Technology Policy, 
Organization, and Priorities Act of 1976 (42 U.S.C. 6616(c)) is 
amended--
            (A) by amending paragraph (1) to read as follows:
    ``(1) appoint such officers and employees as deemed necessary to 
perform the functions now or hereafter vested in the Director without 
regard to any provision of law regulating the employment or 
compensation of persons in the Government service, at rates not to 
exceed the rate of pay for level VI of the Senior Executive schedule as 
provided pursuant to section 5382 of title 5, the United States Code, 
and to prescribe their duties;''; and
            (B) by striking ``and'' at the end of paragraph (2); by 
        striking the period at the end of paragraph (3) and inserting 
        in lieu thereof ``; and''; and by adding at the end the 
        following new paragraph:
    ``(4) accept voluntary and uncompensated services, notwithstanding 
the provisions of section 1342, title 31, United States Code.''.

SEC. 304. TECHNOLOGY MONITORING AND COMPETITIVENESS ASSESSMENT.

    Section 101 of the Stevenson-Wydler Technology Innovation Act of 
1980, as redesignated by section 213(2) of this Act, is amended by 
striking subsection (e) and inserting in lieu thereof the following new 
subsections:
    ``(e) Office of Technology Monitoring and Competitiveness 
Assessment.--(1) The Secretary, through the Under Secretary, shall 
establish within the Technology Administration an Office of Technology 
Monitoring and Competitiveness Assessment, to collect, evaluate, 
assess, and disseminate to United States industry, State and local 
governments, nonprofit organizations, and other interested parties 
information on--
            ``(A) foreign science and technology, specifically 
        information assessing foreign capabilities relative to the 
        United States;
            ``(B) policies and programs used by foreign governments and 
        industries to develop and apply economically important critical 
        technologies, how these policies and programs compare with 
        public and private activities in the United States, and the 
        effects that these foreign policies and programs have on the 
        competitiveness of United States industry; and
            ``(C) the way in which the economic competitiveness of 
        United States industry can be enhanced through Federal 
        programs, including Department of Commerce programs, and 
        evaluations of the effectiveness of Federal technology programs 
        in helping to promote United States industrial competitiveness 
        and economic growth.
    ``(2) Based on the information gathered under paragraph (1), the 
President, with the assistance of the Secretary, shall submit to 
Congress an annual report on United States technology and 
competitiveness analyzing the condition of United States technology 
relative to major trading partners, key trends in foreign technology 
and competitiveness policies and targeting, and the degree to which 
Federal programs are helping the United States to stay competitive with 
other countries and create domestic employment opportunities.
    ``(3) The Office of Technology Monitoring and Competitiveness 
Assessment is authorized to--
            ``(A) act as a focal point within the Federal Government 
        for the collection and dissemination, including electronic 
        dissemination, of information on foreign process and product 
        technologies, including information collected under the 
        Japanese Technical Literature Program;
            ``(B) work and, as appropriate, enter into cooperative 
        arrangements with sector-specific industry trade associations 
        or consortia to define the information desired by industry;
            ``(C) compile and make available the extensive foreign 
        technology monitoring and assessment information already 
        collected and analyzed by the Federal Government;
            ``(D) as appropriate, enter into controlled access 
        agreements with other Federal agencies to fill the industry's 
        information needs;
            ``(E) act as an electronic clearinghouse for such 
        information or otherwise provide for such a clearinghouse;
            ``(F) direct and fund the collection of additional related 
        information;
            ``(G) direct and fund analysis of foreign research and 
        development activities, technical capabilities, workplace 
        practices, particularly in technical areas where the United 
        States is considered to be at par or lagging foreign 
        capabilities;
            ``(H) establish a program to identify technical areas 
        needing a full-scale technical evaluation, and provide, on a 
        cost-shared basis to private sector or government-industry 
        joint ventures, grants to conduct the evaluation; and
            ``(I) work with the Department of State to place technical 
        experts from the Institute and other Federal laboratories into 
        United States embassies to serve as technology attaches and 
        counselors.
    ``(f) Fellowship Program.--(1) The Secretary, acting through the 
Under Secretary, shall establish and administer a fellowship program to 
support Technology Fellows to assist the Under Secretary in carrying 
out activities under subsection (e) relating to those countries that 
are major competitors of the United States in critical technologies, 
and to identify opportunities for technology transfer to the United 
States or technological collaboration for United States industries.
    ``(2) Technology Fellows shall--
            ``(A) regularly report to the Department of Commerce on 
        work planned, in progress, and accomplished; and
            ``(B) provide support to the Department of Commerce as 
        requested by that Department.
    ``(3) Fellowships awarded under the program established under this 
subsection shall--
            ``(A) be awarded for a period of 2 years;
            ``(B) be reasonable and appropriate; and
            ``(C) include provisions for living and office arrangements 
        in the host country.
    ``(4) Only individuals who--
            ``(A) have at least a bachelors degree in engineering or 
        science; and
            ``(B) have at least 5 years of work experience in 
        manufacturing or technology development,
shall be eligible for a fellowship under this program.''.

SEC. 305. RECOUPMENT.

    Section 28 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278n), as amended by this Act, is further amended by 
adding at the end the following new subsection:
    ``(n)(1) Any transaction providing assistance under this section 
may include a clause that requires the recipient to make payments to 
the Department of Commerce as a condition of receiving such assistance.
    ``(2) There is established on the books of the Treasury a separate 
account for the Advanced Technology Program established under this 
section. Amounts received by the United States pursuant to a 
requirement imposed under paragraph (1) may be credited to the extent 
authorized by the Secretary, to the account established under this 
paragraph. Amounts so credited shall be merged with other funds in the 
account and shall be available, to the extent provided in advance in 
appropriations Acts, for the same purposes and the same period for 
which other funds in such account are available.''.

SEC. 306. TECHNOLOGY FINANCING PILOT PROGRAM.

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

             ``TITLE III--ADDITIONAL ASSISTANCE TO INDUSTRY

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

    ``Congress finds and declares the following:
            ``(1) In recent years, United States technology firms 
        appear to have had increasing difficulty financing the 
        development and early-stage commercialization of important new 
        critical civilian technologies. Venture capital is less 
        available than in past years; banks appear less willing to 
        provide loans; and medium-sized as well as small companies 
        often have problems financing promising long-term technology 
        projects.
            ``(2) This difficulty in obtaining financing particularly 
        hurts those technology firms which face foreign competitors 
        which have received substantial direct or indirect financial 
        help from their respective governments.
            ``(3) The Nation would benefit from a technology financing 
        pilot program designed to assist, on an experimental basis, 
        private-sector venture capital entities which, in turn, can 
        select and support the most promising and valuable long-term 
        United States technology projects.

``SEC. 302. TECHNOLOGY FINANCING PILOT PROGRAM.

    ``(a) Establishment of Program.--(1) There is established a 
Department of Commerce-Small Business Administration Pilot Technology 
Financing Partnership Program (in this section referred to as the 
`Pilot Program').
    ``(2) The Pilot Program shall be operated under the direction of a 
Department of Commerce-Small Business Administration Venture Capital 
Licensing Committee (in this section referred to as the `Licensing 
Committee'), which shall consist of--
            ``(A) three Department of Commerce designees appointed by 
        the Secretary, one of whom shall be the Under Secretary for 
        Technology and shall serve as chair of the Licensing Committee, 
        and the other two of whom shall be technology experts, at least 
        one of whom shall also be a finance and investment expert; and
            ``(B) two Small Business Administration designees who are 
        appointed by the Administrator of the Small Business 
        Administration (in this section referred to as the 
        `Administrator') who shall be finance and investment experts.
    ``(3) Under the Pilot Program, for the purpose of stimulating and 
expanding the flow of private capital to eligible technology firms and 
eligible joint ventures--
            ``(A) the Licensing Committee may license, pursuant to 
        joint regulations promulgated under paragraph (4), private-
        sector entities, to be known as `civilian technology investment 
        companies'; and
            ``(B) to the extent directed by the Secretary and the 
        Administrator and provided in advance in appropriations Acts, 
        and in accordance with the operating plan developed under 
        subsection (f), the Licensing Committee may authorize the Small 
        Business Administration to assist financially such civilian 
        technology investment companies.
    ``(4) The Secretary and the Administrator, acting through the 
Licensing Committee, shall promulgate such regulations (in this section 
referred to as the `joint regulations') as shall be necessary to carry 
out the Pilot Program. Such joint regulations shall reflect that the 
Administrator will have primary responsibility for executing the Pilot 
Program, using Small Business Administration personnel and the 
programmatic authority provided in this section, and applicable law. In 
accordance with the operating plan developed by the Licensing Committee 
under subsection (f), the Administrator may issue regulations modifying 
and augmenting existing Small Business Administration authority or 
program criteria, as necessary, to accommodate the special needs of the 
Pilot Program. Those Small Business Administration regulations which 
are modified or adopted to facilitate the Pilot Program shall also be 
reviewed by the Licensing Committee and, if approved by the Licensing 
Committee, shall become part of the joint regulations.
    ``(5) The Secretary shall, utilizing Department of Commerce 
technology personnel and the programmatic authority provided in this 
section and under applicable law, institute and implement a 
complementary information and technical assistance pilot program 
designed to facilitate matches between high-technology companies 
seeking financing and venture capitalists looking for meritorious 
early-stage critical technology investments.
    ``(6) Such funds as may be appropriated through this Act or any 
other Act to the Department of Commerce to implement the Pilot Program 
may be transferred by the Secretary to the Small Business 
Administration, as necessary to carry out the purposes of this section, 
in accordance with subsection (c)(1).
    ``(b) Activities of Licensees.--(1) Each civilian technology 
investment company licensed under this section may provide venture 
capital and loans to eligible technology firms and eligible joint 
ventures in such manner and under such terms as the licensee may fix in 
accordance with the joint regulations. Civilian technology investment 
companies may provide venture capital and loans directly or in 
coinvestments with other investors. The type of financing to be 
provided shall be determined by the Licensing Committee, and shall 
include but shall not be limited to that provided by the Small Business 
Act or the Small Business Investment Act of 1958, or any regulation 
promulgated thereunder.
    ``(2) Each civilian technology investment company shall have 
authority to borrow money and to issue its debentures, promissory 
notes, securities, or other obligations under such general conditions 
and subject to such limitations and regulations as prescribed in the 
joint regulations.
    ``(c) Assistance To Licensees.--(1) In order to encourage the 
formation and growth of civilian technology investment companies, the 
Licensing Committee is authorized, to the extent that funds are made 
available to the Department of Commerce in appropriations Acts, to 
transfer such funds as may be necessary to the Small Business 
Administration to purchase (or guarantee the timely payment of all 
principal, interest, and dividends, as scheduled, on) debentures or 
participating, nonvoting preferred securities issued by such companies, 
on such terms and conditions as are appropriate pursuant to the joint 
regulations to carry out the purposes of this section. The Small 
Business Administration is also authorized, in accordance with sections 
321 and 322 of the Small Business Investment Act of 1958, and 
regulations promulgated thereunder, to issue and guarantee such trust 
certificates as are necessary and appropriate to provide funding for 
qualified civilian technology investment companies. Such issuance and 
funding shall take place in the manner and on the terms and conditions 
as the Licensing Committee directs and shall not be limited to the 
terms and conditions that the Small Business Administration utilizes 
for funding of small business investment companies under the Small 
Business Investment Act of 1958.
    ``(2) Guarantees and purchases of debentures and equity securities 
under this subsection shall be made on such terms and conditions as are 
necessary to ensure that the cost of the program established under this 
section shall not exceed 15 percent of its corresponding credit 
authority in any fiscal year. For the purposes of this subsection, the 
term `cost' shall have the same meaning given such term in section 
502(5) of the Federal Credit Reform Act of 1990, and the term `credit 
authority' shall have the same meaning given such term in section 3(10) 
of the Congressional Budget Act of 1974.
    ``(d) Purposes and Requirements.--The Licensing Committee shall 
require that any civilian technology investment company licensed and 
assisted under this section shall--
            ``(1) focus primarily on providing patient early-stage 
        capital, either loans or equity investments, to eligible 
        technology firms and eligible joint ventures in the United 
        States in order to help those firms and joint ventures finance 
        and accelerate the development and early-stage 
        commercialization of critical civilian technologies;
            ``(2) provide financial assistance to critical civilian 
        technology projects at eligible technology firms and eligible 
        joint ventures: Provided, however, That the Department of 
        Commerce members of the Licensing Committee shall determine 
        whether the products, processes, and services provided by firms 
        assisted by a licensee in fact will assist in developing United 
        States critical technologies;
            ``(3) demonstrate to the Licensing Committee credible 
        procedures for ensuring that investments are made in critical 
        technology projects for which eligible technology firms cannot 
        obtain necessary financing solely through commercial capital 
        markets; and
            ``(4) work with the Licensing Committee to establish 
        methods to identify and evaluate projects to be assisted by the 
        licensee, using, as appropriate, the existing expertise of the 
        National Institute of Standards and Technology, and other 
        organizations, including Regional Centers for the Transfer of 
        Manufacturing Technology, universities, and other research 
        institutions.
    ``(e) Payments.--All amounts received by the Small Business 
Administration from the payment of dividends, any profit allocation, 
the redemption of securities pursuant to this section, and any fees 
paid to the United States by a civilian technology investment company 
licensed pursuant to this section, shall be deposited in the Treasury, 
in accordance with the joint regulations and the requirements of the 
Federal Credit Reform Act of 1990.
    ``(f) Operating Plan; Effective Date; and Evaluation.--(1) The 
Secretary and the Administrator, acting through the Licensing 
Committee, shall jointly and in consultation with State and local 
governments, industry, and the financial community, prepare and submit 
to Congress within one year after the date of enactment of this title, 
an operating plan and draft joint regulations to carry out this 
section. In preparing such a plan, the Secretary and Administrator 
shall consider and evaluate alternative approaches to help technology 
firms and joint ventures in the United States develop and commercialize 
critical civilian technologies. As part of their report, they shall 
make recommendations to Congress as they deem appropriate.
    ``(2) Except for the requirements set forth in subsection (a) and 
paragraph (1) of this subsection, the provisions of this section shall 
not take effect until 6 months after the date of the issuance of the 
report required in paragraph (1).
    ``(3) After appropriations are provided for the Pilot Program 
authorized under this section, the Licensing Committee, in consultation 
with industry and the financial community, shall evaluate annually the 
effectiveness of the Program and submit an annual report to appropriate 
committees of Congress on the findings resulting from such evaluation. 
Such report shall contain, on a confidential basis, appendices which 
include, but are not necessarily limited to, the type and amount of 
assistance provided to licensees under this section, key 
characteristics of such licensees, the number and size in net worth of 
the technology firms and joint ventures (and the participants 
comprising them) assisted by each licensee, the amount of assistance 
provided to each eligible technology firm or eligible joint venture, 
and the types of technology each eligible technology firm or joint 
venture is developing and commercializing. Such report also shall 
contain an analysis of the Pilot Program's impact on the Small Business 
Administration's Small Business Investment Company program.
    ``(4) Five years after appropriations have been provided for the 
Pilot Program authorized under this section, the General Accounting 
Office, in consultation with industry and the financial community, 
shall evaluate the effectiveness of the Program and submit a report to 
appropriate committees of Congress on the findings resulting from such 
evaluation. Such evaluation shall include an analysis of the Pilot 
Program's impact on the Small Business Administration's Small Business 
Investment Company program.
    ``(g) Definitions.--As used in this section, the term--
            ``(1) `appropriate committees of Congress' means the 
        Committee on Science, Technology, and Space and Committee on 
        Small Business of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation and 
        Committee on Small Business of the Senate;
            ``(2) `critical civilian technology' means a technology not 
        exclusively military which is identified in one or more of the 
        biennial national critical technologies reports required under 
        section 603 of the National Science and Technology Policy, 
        Organization, and Priorities Act of 1976 (42 U.S.C. 6683);
            ``(3) `eligible joint venture' means a joint research and 
        development venture or joint production venture, as defined in 
        section 2 of the National Cooperative Research Act of 1984 (5 
        U.S.C. 4301)--
                    ``(A) which meets the requirements of section 
                28(d)(9) of the National Institute of Standards and 
                Technology Act (15 U.S.C. 278n(d)(9));
                    ``(B) whose purpose in seeking financing is the 
                development of products, processes, and services based 
                on critical civilian technologies; and
                    ``(C) which meets size standards set by the 
                Licensing Committee, which size standards need not 
                comply with the Small Business Act or the Small 
                Business Investment Act of 1958, or any regulation 
                promulgated thereunder or interpretation thereof;
            ``(4) `eligible technology firm' means a company--
                    ``(A) which meets the requirements of section 
                28(d)(9) of the National Institute of Standards and 
                Technology Act (15 U.S.C. 278n(d)(9));
                    ``(B) whose purpose in seeking financing is the 
                development of products, processes, and services based 
                on critical civilian technologies; and
                    ``(C) which meets size standards set by the 
                Administrator;
            ``(4) `finance and investment expert' means an individual 
        who has administered or participated in a venture capital or 
        similar financing program, or has operated a venture capital 
        company; and
            ``(5) `licensee' means a civilian technology investment 
        company licensed by the Licensing Committee pursuant to this 
        section.''.

SEC. 307. REPORTS ON FOREIGN INDUSTRIAL ESPIONAGE.

    (a) In General.--(1) In order to assist Congress in its oversight 
functions with respect to this Act and to improve the awareness of 
United States industry of foreign industrial espionage and the ability 
of such industry to protect against such espionage, the President shall 
submit to Congress a report that describes, as of the time of the 
report, the following:
            (A) The respective policy functions and operational roles 
        of the agencies of the executive branch of the Federal 
        Government in identifying and countering threats to United 
        States industry of foreign industrial espionage, including the 
        manner in which such functions and roles are coordinated.
            (B) The means by which the Federal Government communicates 
        information on such threats, and on methods to protect against 
        such threats, to United States industry in general and to 
        United States companies known to be targets of foreign 
        industrial espionage.
            (C) The specific measures that are being or could be 
        undertaken in order to improve the activities referred to in 
        subparagraphs (A) and (B), including proposals for any 
        modifications of law necessary to facilitate the undertaking of 
        such activities.
            (D) The threat to United States industry of foreign 
        industrial espionage and any trends in that threat, including--
                    (i) the number and identity of the foreign 
                governments conducting foreign industrial espionage;
                    (ii) the industrial sectors and types of 
                information and technology targeted by such espionage; 
                and
                    (iii) the methods used to conduct such espionage.
    (2) The President shall submit the report required under this 
subsection not later than 6 months after the date of the enactment of 
this Act.
    (b) Annual Update.--Not later than 1 year after the date referred 
to in paragraph (2) of subsection (a), and on the expiration of each 
year thereafter, the President shall submit to Congress a report 
updating the information referred to in paragraph (1)(D) of that 
subsection.
    (c) Form of Reports.--To the maximum extent practicable, the 
reports referred to in subsections (a) and (b) shall be submitted in an 
unclassified form, but may be accompanied by a classified appendix.
    (d) Report under Defense Production Act.--Section 721(k)(1)(B) of 
the Defense Production Act of 1950 (50 U.S.C. App. 2170(k)(1)(B)) is 
amended by inserting ``or directly assisted'' after ``directed''.
    (e) Definition.--For the purposes of this section, ``foreign 
industrial espionage'' means industrial espionage conducted by a 
foreign government or by a foreign company with direct assistance of a 
foreign government against a private United States company and aimed at 
obtaining commercial secrets.

          TITLE IV--ADDITIONAL COMMERCE DEPARTMENT PROVISIONS

SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY ADVISORY BOARD.

    The Stevenson-Wydler Technology Innovation Act of 1980 (as amended 
by sections 211 and 213 of this Act) is further amended by inserting 
after section 103 (as added by section 211 of this Act) the following 
new section:

``SEC. 104. DEPARTMENT OF COMMERCE TECHNOLOGY ADVISORY BOARD.

    ``(a) Establishment.--There is established a Department of Commerce 
Technology Advisory Board (in this section referred to as the `Advisory 
Board'), the purpose of which is to advise the Secretary, Under 
Secretary, and Director on the plans, programs, and policies of the 
Technology Administration, including ways in which to--
            ``(1) promote the development and rapid application of 
        advanced commercial technologies, including advanced 
        manufacturing technologies such as skill-based production 
        technologies;
            ``(2) strengthen the programs of the Technology 
        Administration; and
            ``(3) generally improve the global competitiveness of 
        industries within the United States.
    ``(b) Composition.--The Advisory Board shall be composed of at 
least 17 members, appointed by the Under Secretary from among 
individuals who, because of their experience and accomplishments in 
technology development, business development, or finance are 
exceptionally qualified to analyze and formulate policy that would 
improve the global competitiveness of industries in the United States. 
The Under Secretary shall designate one member to serve as chairman. 
Membership of the Advisory Board shall be composed of--
            ``(1) representatives of--
                    ``(A) United States small businesses;
                    ``(B) United States manufacturers;
                    ``(C) research universities and independent 
                research institutes;
                    ``(D) State and local government agencies involved 
                in industrial extension;
                    ``(E) national laboratories;
                    ``(F) industrial, worker, and technical and 
                professional organizations; and
                    ``(G) financial organizations; and
            ``(2) other individuals that possess important insight to 
        issues of national competitiveness.
The Under Secretary shall make an effort to ensure the appointment of 
socially and economically disadvantaged individuals (within the meaning 
of section 8(a) (5) and (6) of the Small Business Act, and including 
women) to the Advisory Board.
    ``(c) Meetings.--(1) The chairman shall call the first meeting of 
the Advisory Board not later than 90 days after the date of enactment 
of this section.
    ``(2) The Advisory Board shall meet at least once every 6 months, 
and at the call of the Under Secretary.
    ``(d) Travel Expenses.--Members of the Advisory Board, other than 
full-time employees of the United States, shall be allowed travel 
expenses in accordance with subchapter I of chapter 57 of title 5, 
United Stated Code, while engaged in the business of the Advisory 
Board.
    ``(e) Consultation.--In carrying out this section, the Under 
Secretary shall consult with other agencies, as appropriate. The 
Advisory Board, as appropriate, shall establish communication and 
coordination mechanisms with other Federal advisory committees to help 
ensure integrated Federal-private consideration of technology and 
manufacturing policies and programs.
    ``(f) Termination.--Section 14 of the Federal Advisory Committee 
Act shall not apply to the Advisory Board.
    ``(g) Secretarial Discretion.--Notwithstanding any other provision 
of this section, the Secretary shall have the discretion to decide 
whether to establish the Advisory Board or create a more cost-effective 
way to achieve the goal of closer cooperation with industry. If the 
Secretary exercises such discretion and establishes an alternative 
mechanism, the Under Secretary shall make an effort to ensure the 
participation of socially and economically disadvantaged individuals 
(within the meaning of section 8(a) (5) and (6) of the Small Business 
Act, and including women) in the alternative mechanism.''.

SEC. 402. INTERNATIONAL STANDARDIZATION.

    (a) Findings.--The Congress finds that--
            (1) private sector consensus standards are essential to the 
        timely development of competitive products;
            (2) Federal Government contribution of resources and more 
        active participation in the voluntary standards process in the 
        United States can increase the quality of United States 
        standards, increase their compatibility with the standards of 
        other countries, and ease access of products manufactured by 
        United States manufacturers to foreign markets; and
            (3) the Federal Government, working in cooperation with 
        private sector organizations including trade associations, 
        engineering societies, technical organizations, and other 
        standards-setting bodies can effectively promote Federal 
        Government use of United States consensus standards and, where 
        appropriate, the adoption and Federal Government use of 
        international standards.
    (b) Standards Pilot Program.--Section 104(e) of the American 
Technology Preeminence Act of 1991 (Public Law 102-245; 106 Stat. 10) 
is amended--
            (1) by inserting ``(1)'' before ``Pursuant to the'';
            (2) by striking ``matching funds'' and inserting in lieu 
        thereof ``financial contributions deemed appropriate by the 
        Secretary''; and
            (3) by adding at the end the following new paragraph:
    ``(2) As necessary and appropriate, the Institute shall expand the 
program established under section 112 of the National Institute of 
Standards and Technology Authorization Act for Fiscal Year 1989 (15 
U.S.C. 272 note) by extending the existing program to include other 
countries that request assistance with standards-related activities 
from official representatives of the United States Government. The 
Institute may enter into additional contracts with non-Federal 
organizations representing United States companies described in section 
28(d)(9)(B) of the National Institute of Standards and Technology Act 
(15 U.S.C. 278n(d)(9)(B)) or with United States-based professional 
societies and other standards-setting bodies that participate in the 
development of standards. Such contracts shall require cost sharing 
between Federal and non-Federal sources for such purposes. In awarding 
such contracts, the Institute shall seek to promote and support the 
dissemination of United States technical standards to additional 
foreign countries and shall seek, as the Director deems appropriate, to 
promote the adoption of international standards supported by United 
States industry, and shall seek to assist private sector developers of 
standards, including engineering societies which participate in the 
development of standards in expediting the development of domestic and 
other standards which enable the introduction of technologies, 
products, or technology-based services which are being delayed due to 
the lack of available standards. The Institute and such contractors 
shall, in carrying out the preceding sentence, cooperate with 
governmental bodies, private organizations (including standards setting 
organizations and industry), and multinational institutions that 
promote economic development. The organizations receiving such 
contracts may establish training programs to bring to the United States 
foreign standards experts for the purpose of receiving in-depth 
training in the United States standards system.''.
    (c) Report on Global Standards.--(1) Section 508(a) of the American 
Technology Preeminence Act of 1991 (15 U.S.C. 3701 note) is amended--
            (A) by inserting ``standards development and 
        international'' after ``a thorough review of international'';
            (B) by redesignating paragraphs (1) through (5) as 
        paragraphs (2) through (6), respectively; and
            (C) by inserting before paragraph (2), as so redesignated, 
        the following new paragraph:
    ``(1) Current and potential future roles of the Federal Government 
in the development and promulgation of domestic and global product and 
process standards.''.
    (2) The Secretary, in consultation with the Institute and the 
Department of Commerce Technology Advisory Board established under 
section 104 of the Stevenson-Wydler Technology Innovation Act of 1980 
(as added by section 401 of this Act) and with, as appropriate, the 
active participation of the private sector, shall submit to the 
Congress a report describing the appropriate roles of the Department of 
Commerce in aid to United States companies in achieving conformity 
assessment and accreditation and otherwise qualifying their products in 
foreign markets, through the development and promulgation of domestic 
and global product and quality standards, and through Department of 
Commerce programs related to conformity assessment and accreditation 
procedures based upon such standards, including a discussion of the 
extent to which each of the policy options provided in the March 1992 
Office of Technology Assessment report on global standards, contributes 
to meeting the goals of--
            (A) increasing the international adoption of standards 
        beneficial to United States industries; and
            (B) improving the coordination of United States 
        representation at international standards setting bodies.

SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.

    (a) Restrictions.--Section 111(c)(3) of the Stevenson-Wydler 
Technology Innovation Act of 1980, as so redesignated by section 213(5) 
of this Act, is amended to read as follows:
    ``(3) No award shall be made within any category or subcategory if 
there are no qualifying enterprises in that category or subcategory.''.
    (b) Categories in Which Award May Be Given.--(1) Section 111(c)(1) 
of the Stevenson-Wydler Technology Innovation Act of 1980, as so 
redesignated by section 213(5) of this Act, is amended by adding at the 
end the following new subparagraph:
    ``(D) Educational institutions.''.
    (2)(A) Within 2 years after the date of enactment of this Act, the 
Secretary shall submit to Congress a report containing--
            (i) criteria for qualification for a Malcolm Baldrige 
        National Quality Award by various classes of educational 
        institutions;
            (ii) criteria for the evaluation of applications for such 
        awards under section 111(d)(1) of the Stevenson-Wydler 
        Technology Innovation Act of 1980, as so redesignated by 
        section 213(5) of this Act; and
            (iii) a plan for funding awards described in clause (i).
    (B) In preparing the report required under subparagraph (A), the 
Secretary shall consult with the National Science Foundation and other 
public and private entities with appropriate expertise, and shall 
provide for public notice and comment.
    (C) The Secretary shall not accept applications for awards 
described in subparagraph (A)(i) until after the report required under 
subparagraph (A) is submitted to Congress.

SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.

    Section 202(d)(2)(A) of the Stevenson-Wydler Technology Innovation 
Act of 1980, as so redesignated by section 213(7) of this Act, by 
inserting ``including Federal test and evaluation facilities,'' after 
``by a Federal agency,''.

SEC. 405. PROGRAM EVALUATIONS.

    Section 101 of the Stevenson-Wydler Technology Innovation Act of 
1980, as so redesignated by section 213(2) of this Act and as amended 
by this Act, is further amended by adding at the end the following new 
subsection:
    ``(g) Program Evaluations.--(1) The Secretary, through the Under 
Secretary, shall--
             ``(A) provide for the conduct of research and analyses to 
        advance knowledge of the ways in which the economic 
        competitiveness of United States companies can be enhanced 
        through Federal programs established under the National 
        Competitiveness Act of 1994 or the amendments made by that Act; 
        and
            ``(B) as appropriate, provide for evaluations of Federal 
        technology programs established or expanded under the National 
        Competitiveness Act of 1994 or the amendments made by that Act 
        in order to judge their effectiveness and make recommendations 
        to improve their contribution to United States competitiveness.
    ``(2) All executive departments and agencies shall assist the 
Secretary in carrying out this subsection as appropriate.
    ``(3) Nothing in this subsection shall authorize the release of 
information to, or the use of information by, the Secretary or Under 
Secretary in a manner inconsistent with law or any procedure 
established pursuant thereto.
    ``(4) The head of any Federal agency may detail such personnel and 
may provide such services, with or without reimbursement, as the 
Secretary may request to assist in carrying out the activities required 
under this subsection.''.

SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECHNOLOGIES.

    Within 9 months after the date of enactment of this Act, the 
Critical Technologies Institute established under section 822 of the 
National Defense Authorization Act for Fiscal Year 1991 (42 U.S.C. 
6686) shall, after consultation with the private sector and appropriate 
officials from other Federal agencies, submit to Congress a report on 
advanced lithography technologies for the production of semiconductor 
devices. The report shall include the Critical Technologies Institute's 
evaluation of the likely technical and economic advantages and 
disadvantages of each such technology, an analysis of current private 
and Government research to develop each such technology, and any 
recommendations the Critical Technologies Institute may have regarding 
future Federal support for research and development in advanced 
lithography.

SEC. 407. CLEARINGHOUSE ON STATE AND LOCAL INITIATIVES.

    Section 105(a) of the Stevenson-Wydler Technology Innovation Act of 
1980, as so redesignated by section 213(5) of this Act, is amended by 
striking ``Office of Productivity, Technology, and Innovation'' and 
inserting in lieu thereof ``Technology Administration''.

SEC. 408. WIND ENGINEERING RESEARCH PROGRAM.

    (a) Short Title.--This section may be cited as the ``Wind 
Engineering Program Act of 1994''.
    (b) Findings.--Congress finds and declares the following:
            (1) Hurricanes and tornadoes kill more Americans and 
        destroy more property than any other natural disaster.
            (2) Each year, in the United States, extreme winds cause 
        billions of dollars of damage to homes, schools, and other 
        buildings, roads and bridges, electrical power distribution 
        networks, and communications networks.
            (3) Research on wind and wind engineering has resulted in 
        improved methods for making buildings and other structures less 
        vulnerable to extreme winds, but additional research funding is 
        needed to develop new, improved, and more cost-effective 
        methods of wind-resistant construction.
            (4) Federal funding for wind engineering research has 
        decreased drastically over the last 20 years.
            (5) Wind research has been hampered by a lack of data on 
        near-surface wind speed and distribution during hurricanes, 
        tornadoes, and other severe storms.
            (6) Many existing methods for wind-resistant construction 
        are inexpensive and easy to implement but often they are not 
        applied because the construction industry and the general 
        public are unaware of such methods.
            (7) Various Federal agencies have important roles to play 
        in wind engineering research, but at present there is little 
        interagency cooperation in this area.
            (8) Establishment of a Federal Wind Engineering Program 
        would result in new technologies for wind-resistant 
        construction, broader application of such technologies in 
        construction, and ultimately decreased loss of life and 
        property due to extreme winds.
    (c) Purpose.--The purpose of this section is to create a Wind 
Engineering Program within the National Institute of Standards and 
Technology, which would--
            (1) provide for wind engineering research;
            (2) serve as a clearinghouse for information on wind 
        engineering; and
            (3) improve interagency coordination on wind engineering 
        research between the National Institute of Standards and 
        Technology, the National Oceanic and Atmospheric 
        Administration, the National Science Foundation, the Federal 
        Aviation Administration, and other appropriate agencies.
    (d) Establishment.--Within the National Institute of Standards and 
Technology, there shall be established a Wind Engineering Program which 
shall--
            (1) conduct research and development, in cooperation with 
        the private sector and academia, on new methods for mitigating 
        wind damage due to tornadoes, hurricanes, and other severe 
        storms;
            (2) fund construction and maintenance of wind tunnels and 
        other research facilities needed for wind engineering research;
            (3) promote the application of existing methods for, and 
        research results on, reducing wind damage to buildings that are 
        usually incompletely- or non-engineered, such as single family 
        dwellings, mobile homes, light industrial buildings, and small 
        commercial structures;
            (4) transfer technology developed in wind engineering 
        research to the private sector so that it may be applied in 
        building codes, design practice, and construction;
            (5) conduct, in conjunction with the National Oceanic and 
        Atmospheric Administration, post-disaster research following 
        hurricanes, tornadoes, and other severe storms to evaluate the 
        vulnerability of different types of buildings to extreme winds;
            (6) serve as a point of contact for dissemination of 
        research information on wind engineering and work with the 
        private sector to develop education and training programs on 
        construction techniques, developed from research results, for 
        reducing wind damage;
            (7) work with the National Oceanic and Atmospheric 
        Administration, the Federal Aviation Administration, and other 
        agencies as is appropriate, on meteorology programs to collect 
        and disseminate more data on extreme wind events; and
            (8) work with the National Science Foundation to support 
        and expand basic research on wind engineering.

SEC. 409. ENVIRONMENTALLY SENSITIVE CONSTRUCTION TECHNOLOGIES.

    (a) Short Title.--This section may be cited as the 
``Environmentally Sensitive Construction Act of 1994''.
    (b) Findings and Purposes.--Congress finds the following:
            (1) As the world economy develops, environmental concerns 
        are becoming increasingly critical.
            (2) Developing the world economy through the use of 
        environmentally sound technologies will pay dividends for years 
        to come.
            (3) The United States should be a leader in developing 
        environmentally sound technologies.
            (4) As shelter is a basic human need, the development of 
        environmentally sound construction techniques should be a 
        priority area.
            (5) Establishment of a Federal Environmentally Sensitive 
        Construction Program within the Institute would result in new 
        technologies for environmentally sensitive construction, 
        broader application of such technologies in construction, and 
        an improved world economy and environment.
    (c) Establishment.--Within the Institute, there shall be 
established a Federal Environmentally Sensitive Construction Program 
which shall--
            (1) conduct research and development, in cooperation with 
        the private sector and academia, on construction materials and 
        techniques which result in structures which pose low 
        environmental and health risks for their occupants and minimize 
        waste generation and other environmental problems;
            (2) as appropriate and permitted by appropriations, support 
        academic research projects in regions around the Nation to 
        develop and demonstrate environmentally sensitive construction; 
        and
            (3) disseminate information on environmentally sensitive 
        construction technology.

SEC. 410. AMERICAN WORKFORCE QUALITY.

    (a) Workforce Activities.--In addition to existing responsibilities 
and authorities prescribed by law, the Secretary, through the Director 
and after consultation with the Secretary of Labor, shall ensure that 
Regional Centers for the Transfer of Manufacturing Technology and 
Manufacturing Outreach Centers utilize, when appropriate, their 
expertise and capability to assist managers and workers of 
manufacturers in the United States in effectively utilizing and 
operating advanced manufacturing technologies and modern technologies--
            (1) by making available assessments of the needs of 
        manufacturers in the United States for worker training in the 
        effective utilization and operation of specific technologies 
        the manufacturers have adopted or are planning to adopt;
            (2) by making available to manufacturers in the United 
        States information on commercially and publicly provided worker 
        training services, including those provided by United States 
        sources of technologies, in the effective utilization and 
        operation of specific technologies the manufacturers have 
        adopted or are planning to adopt; and
            (3) by providing information to client firms and their 
        workers to enable them effectively to utilize and operate 
        specific technologies that the firms have adopted or plan to 
        adopt.
    (b) Workforce Analysis and Information Dissemination.--In addition 
to existing responsibilities and authorities prescribed by law, the 
Secretary, through the Director and in consultation with the Secretary 
of Labor and other appropriate Federal officials and with leaders of 
industry and labor, shall assist managers and other workers of 
manufacturers in the United States in effectively utilizing and 
operating advanced manufacturing technologies and modern technologies--
            (1) by establishing and managing a clearinghouse for 
        information, to be available through an appropriate entity to 
        the Regional Centers for the Transfer of Manufacturing 
        Technology, to the Manufacturing Outreach Centers when they are 
        established, to other technology training entities, or directly 
        to manufacturers, on the best available training material and 
        services for the effective utilization and operation of 
        specific advanced manufacturing technologies and modern 
        technologies;
            (2) by encouraging United States providers of advanced 
        manufacturing technologies and modern technologies for 
        manufacturers to develop training material specifically 
        designed for the managers and other workers responsible for 
        utilizing and operating such technologies; and
            (3) by establishing as an important criterion in the 
        assessment of advanced manufacturing technologies and modern 
        technologies the availability of training material specifically 
        designed for the managers and other workers responsible for 
        utilizing and operating such technologies.

SEC. 411. SEVERABILITY.

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

SEC. 412. USE OF DOMESTIC PRODUCTS.

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

SEC. 413. PERSONNEL.

    Notwithstanding any other provision of law, the personnel 
management demonstration project, established under section 10 of the 
National Bureau of Standards Authorization Act for Fiscal Year 1987 (15 
U.S.C. 275 note), is extended until December 31, 1998.

               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

SEC. 501. TECHNOLOGY ADMINISTRATION.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary, to carry out the activities of the Under 
Secretary and the Assistant Secretary of Commerce for Technology 
Policy, in addition to any other amounts authorized for such purposes, 
for the Office of the Under Secretary--
            (1) $6,000,000 for fiscal year 1994;
            (2) $11,300,000 for fiscal year 1995, of which $2,000,000 
        are authorized for program evaluations under section 101(g) of 
        the Stevenson-Wydler Technology Innovation Act of 1980, as 
        added by section 405 of this Act; and
            (3) $14,000,000 for fiscal year 1996.
    (b) National Technical Information Service Facilities Study.--As 
part of its modernization effort and before signing any lease for a new 
facility, the National Technical Information Service, in consultation 
with the General Services Administration, shall study and report to 
Congress on the feasibility of accomplishing all or part of its 
modernization by signing a long-term lease with an organization that 
agrees to supply a facility and supply and periodically upgrade modern 
equipment which permits the National Technical Information Service to 
receive, store, and manipulate in electronic form, and print, 
electronically-created documents and reports and to carry out the other 
functions assigned to the National Technical Information Service.

SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.

    (a) Intramural Scientific and Technical Research and Services.--(1) 
There are authorized to be appropriated to the Secretary, to carry out 
the intramural scientific and technical research and services 
activities of the Institute, $240,988,000 for fiscal year 1994, 
$320,000,000 for fiscal year 1995, and $350,000,000 for fiscal year 
1996.
    (2) Of the amounts authorized under paragraph (1)--
            (A) $1,000,000 for each of the fiscal years 1994, 1995, and 
        1996 are authorized only for the evaluation of nonenergy-
        related inventions;
            (B) $8,054,000 for fiscal year 1994 and $8,113,000 for each 
        of the fiscal years 1995 and 1996 are authorized only for the 
        technical competence fund; and
            (C) $5,000,000 for each of the fiscal years 1994, 1995, and 
        1996 are authorized only for the standards pilot project 
        established under section 104(e) of the American Technology 
        Preeminence Act of 1991 (Public Law 102-245; 106 Stat. 10).
    (b) Facilities.--In addition to the amounts authorized under 
subsection (a), there are authorized to be appropriated to the 
Secretary $62,000,000 for fiscal year 1994, $110,392,000 for fiscal 
year 1995, and $112,000,000 for fiscal year 1996, for the renovation 
and upgrading of the Institute's facilities. The Institute may enter 
into a contract for the design work for such purposes only if Federal 
Government payments under the contract are limited to amounts provided 
in advance in appropriations Acts.
    (c) Extramural Industrial Technology Services.--(1) In addition to 
the amounts authorized under subsections (a) and (b), there are 
authorized to be appropriated to the Secretary, to carry out the 
extramural industrial technology services activities of the Institute--
            (A) for the Manufacturing Extension Partnership, 
        $40,000,000 for fiscal year 1994, $70,000,000 for fiscal year 
        1995, and $100,000,000 for fiscal year 1996;
            (B) for the Advanced Technology Program, $200,000,000 for 
        fiscal year 1994, $475,000,000 for fiscal year 1995, and 
        $575,000,000 for fiscal year 1996; and
            (C) for quality programs at the Institute, $2,800,000 for 
        fiscal year 1994, $10,000,000 for fiscal year 1995, and 
        $10,000,000 for fiscal year 1996.
    (2) The Secretary shall ensure that audits are performed by outside 
auditors on the programs for which funds are appropriated pursuant to 
this subsection. The summary results of such audits shall be submitted 
to Congress by the end of each of the fiscal years 1994 and 1995, and 
not more than $2,000,000, or 2 percent of the aggregate amount made 
available under this subsection, whichever is greater, shall be used in 
each such fiscal year for performing the audits.
    (d) Transfers.--(1) Funds may be transferred among the line items 
listed in subsection (a) and among the line items listed in subsection 
(c) so long as--
            (A) the net funds transferred to or from any line item do 
        not exceed 10 percent of the amount authorized for that line 
        item in such subsection;
            (B) the aggregate amount authorized under subsection (a) is 
        not changed; and
            (C) the Committee on Commerce, Science, and Transportation 
        of the Senate and the Committee on Science, Space, and 
        Technology of the House of Representatives are notified in 
        advance of any such transfer.
    (2) The Secretary may propose transfers to or from any line item 
listed in subsection (a) exceeding 10 percent of the amount authorized 
from such line item, but such proposed transfer may not be made 
unless--
            (A) a full and complete explanation of any such proposed 
        transfer and the reason therefor are transmitted in writing to 
        the Speaker of the House of Representatives, the President of 
        the Senate, and the appropriate authorizing committees of the 
        House of Representatives and the Senate; and
            (B) 30 days have passed following the transmission of such 
        written explanation.
    (e) Wind Engineering.--(1) There are authorized to be appropriated 
to the Institute for the purposes of section 408 of this Act, 
$1,000,000 for fiscal year 1994 and $3,000,000 for each of the fiscal 
years 1995 and 1996.
    (2) Of the amounts appropriated under paragraph (1), no less than 
50 percent shall be used for cooperative agreements with the National 
Oceanic and Atmospheric Administration, the National Science 
Foundation, and the Federal Aviation Administration, or other agencies, 
for wind engineering research, development of improved practices for 
structures, and the collection and dissemination of meteorological data 
needed for wind engineering.
    (f) Environmentally Sensitive Construction Program.--There are 
authorized to be appropriated to the Institute for the purposes of 
section 409, $1,000,000 for fiscal year 1994 and $3,000,000 for fiscal 
year 1995.

SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY ADMINISTRATION.

    In addition to the amounts authorized under sections 501 and 502, 
there are authorized to be appropriated to the Secretary to carry out 
additional duties of the Under Secretary--
            (1) for the establishment and management of a technology 
        training clearinghouse, $2,000,000 for each of the fiscal years 
        1994 and 1995 and $3,000,000 for fiscal year 1996;
            (2) for the support of policy experiments relating to 
        intelligent manufacturing systems, $2,000,000 for fiscal year 
        1995 and $4,000,000 for fiscal year 1996;
            (3) for carrying out responsibilities for technology 
        monitoring and competitiveness assessment, $10,000,000 for each 
        of the fiscal years 1994 and 1995 and $12,000,000 for fiscal 
        year 1996;
            (4) for the National Technical Information Service 
        revolving fund, $20,000,000 for each of the fiscal years 1995 
        and 1996; and
            (4) for the purpose of carrying out the technology 
        financing pilot program under section 306, $2,000,000 for 
        fiscal year 1994 to prepare the operating plan and promulgate 
        regulations required under that section and $50,000,000 for 
        each of the fiscal years 1995 and 1996 to carry out the 
        provisions of that section.

SEC. 504. NATIONAL SCIENCE FOUNDATION.

    In addition to such other sums as may be authorized by other 
provisions of law to be appropriated to the Director of the National 
Science Foundation, there are authorized to be appropriated to that 
Director, to carry out the provisions of section 221, $50,000,000 for 
fiscal year 1994 and $75,000,000 for each of the fiscal years 1995 and 
1996.

SEC. 505. AVAILABILITY OF APPROPRIATIONS.

    Appropriations made under the authority provided in this title 
shall remain available for obligation, for expenditure, or for 
obligation and expenditure for periods specified in the Acts making 
such appropriations.

             TITLE VI--INFORMATION TECHNOLOGY APPLICATIONS

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Information Technology 
Applications Act of 1994''.

SEC. 602. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds and declares the following:
            (1) High-performance computing and high-speed networks have 
        proven to be powerful tools for improving America's national 
        security, industrial competitiveness, and research 
        capabilities.
            (2) Federal programs, such as the National High-Performance 
        Computing Program established by Congress in 1991, have played 
        a key role in maintaining United States leadership in high-
        performance computing, especially in the defense and research 
        sectors.
            (3) High-performance computing and high-speed networking 
        have the potential to revolutionize many fields, including 
        education, libraries, health care, and manufacturing, if 
        adequate resources are invested in developing the technology 
        needed to do so.
            (4) The Federal Government should ensure that the 
        technology developed under research and development programs 
        such as the National High-Performance Computing Program can be 
        widely applied for the benefit of all Americans, including 
        Americans with disabilities.
            (5) The Federal Government, in cooperation with computer 
        users, private industry, and others, should support research 
        and development projects which will provide large economic and 
        social benefits. These projects, designed to address major 
        National Challenges, should include the development of 
        computing tools for teaching, digital libraries of electronic 
        information, computer systems to improve the delivery of health 
        care, and computer and networking technology to promote United 
        States competitiveness. These applications should be designed 
        and operated in ways which protect privacy and intellectual 
        property rights.
    (b) Purpose.--It is the purpose of this title to expand the scope 
of the National High-Performance Computing Program to identify and 
promote the development of applications of high-performance computing 
and high-speed networking which will provide large economic and social 
benefits to the Nation.

SEC. 603. INFORMATION TECHNOLOGY APPLICATIONS.

    (a) Findings, Purpose, and Definitions of High-Performance 
Computing Act.--The High-Performance Computing Act of 1991 (15 U.S.C. 
5501 et seq.) is amended--
            (1) in section 2, by amending paragraph (4) to read as 
        follows:
    ``(4) High-capacity and high-speed computer networks would provide 
researchers and educators with access to computer and information 
resources and act as test beds for further research and development.'';
            (2) in section 3--
                    (A) by amending paragraph (1)(A) to read as 
                follows:
            ``(A) accelerate the creation of a universally accessible 
        communications network for the Nation;'';
                    (B) in paragraph (1)(C), by striking ``available 
                for use through the Network'';
                    (C) in paragraph (1)(G), by inserting ``and 
                National Challenges'' after ``Grand Challenges''; and
                    (D) by striking ``and'' at the end of paragraph 
                (1)(I); by striking the period at the end of paragraph 
                (2) and inserting in lieu thereof ``; and''; and by 
                adding after paragraph (2) the following new paragraph:
    ``(3) promoting the widest possible application of high-performance 
computing and high-speed networking by--
            ``(A) identifying and addressing specific National 
        Challenges, and generally expanding Federal support for 
        research and development of high-performance computing and 
        high-speed networking, in order to--
                    ``(i) improve education at all levels, from 
                preschool to adult education, including the development 
                of new educational technologies;
                    ``(ii) build digital libraries of electronic 
                information accessible over computer networks;
                    ``(iii) improve the provision of health care, 
                including furnishing health care providers and their 
                patients with better, more accurate, and more timely 
                information; and
                    ``(iv) increase the productivity of the Nation's 
                industry, especially in the manufacturing sector; and
            ``(B) improving coordination of Federal efforts to deploy 
        these technologies in cooperation with the private sector as 
        part of an advanced national information infrastructure.'';
            (3) in section 4, by striking paragraph (4); by 
        redesignating paragraph (5) as paragraph (7); and by inserting 
        after paragraph (3) the following new paragraphs:
    ``(4) `information infrastructure' means a network of 
communications systems and computer systems designed to exchange 
information among all citizens and residents of the United States;
    ``(5) `National Challenge' means a technical or operational 
difficulty or problem which, if successfully solved, will result in an 
application of high-performance computing or high-speed networking that 
will provide large economic and social benefits to a broad segment of 
the Nation's populace;
    ``(6) `Network Program' means the National Research and Education 
Network Program established under section 102; and''.
    (b) National High-Performance Computing Program.--Section 101 of 
the High-Performance Computing Act of 1991 is amended--
            (1) in subsection (a)(2)--
                    (A) by amending subparagraphs (A) and (B) to read 
                as follows:
                    ``(A) foster and encourage competition and private-
                sector investment in networking within the 
                telecommunications industry;
                    ``(B) encourage--
                            ``(i) a diversity of public and private 
                        sources for information products and services 
                        based on government information; and
                            ``(ii) the dissemination of government 
                        information to the public on a timely, 
                        equitable, and affordable basis and in a manner 
                        that will promote the usefulness of the 
                        information to the public;''; and
                    (B) by striking ``and'' at the end of subparagraph 
                (H); by striking the period at the end of subparagraph 
                (I) and inserting in lieu thereof a semicolon; and by 
                inserting after subparagraph (I) the following new 
                subparagraphs:
                    ``(J) provide for the development and, as 
                appropriate, implementation of applications of high-
                performance computing and high-speed networking, 
                through projects which address National Challenges in 
                the fields of education, library science, health care, 
                manufacturing, provision of government information, and 
                other appropriate fields;
                    ``(K) identify each Program agency's responsibility 
                for addressing National Challenges in high-performance 
                computing and high-speed networking; and
                    ``(L) provide for the development, to the extent 
                technologically feasible, of technology to protect 
                privacy, security, and intellectual property rights 
                (including copyrights).'';
            (2) in subsection (a)(4)(C), by inserting ``development of 
        applications technology,'' after ``development,''; and by 
        inserting ``Program established in section 102'' after 
        ``Network''; and
            (3) in subsection (a)(4), by striking ``and'' at the end of 
        subparagraph (D); by striking the period at the end of 
        subparagraph (E) and inserting in lieu thereof a semicolon; and 
        by adding at the end the following new subparagraphs:
                    ``(F) include a summary of the achievements of 
                Federal efforts during the preceding fiscal year to 
                develop technologies needed for an advanced information 
                infrastructure;
                    ``(G) identify steps agencies are taking to develop 
                technology to protect privacy, security, and 
                intellectual property rights (including copyrights) for 
                computer networks; and
                    ``(H) provide any recommendations regarding 
                additional action or legislation which may be required 
                to assist in achieving the purposes of this title.''; 
                and
            (4) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Copyright Law.--Nothing in this Act shall be construed to 
modify or otherwise change any provision of title 17, United States 
Code.''.

SEC. 604. APPLICATIONS FOR EDUCATION AND LIBRARIES.

    (a) National Science Foundation Activities.--Section 201 of the 
High-Performance Computing Act of 1991 (15 U.S.C. 5521) is amended--
            (1) in subsection (a), by striking ``and'' at the end of 
        paragraph (3); by striking the period at the end of paragraph 
        (4) and inserting in lieu thereof a semicolon; and by adding at 
        the end the following new paragraphs:
    ``(5) the National Science Foundation and the Department of 
Education, in cooperation with other appropriate agencies, shall 
provide for the development of advanced computing and networking 
technology for use in education at all levels; and
    ``(6) the National Science Foundation, the Department of Education, 
and other appropriate agencies shall provide for the development and 
use of technologies needed for digital libraries of computerized data 
and information and, as appropriate, may work with private and 
nonprofit institutions to develop prototype digital libraries to serve 
as test beds for advanced computing systems, software, standards, and 
methods.''; and
            (2) in subsection (b), by striking ``$305,000,000'' and 
        inserting in lieu thereof ``$339,000,000''; and by striking 
        ``$354,000,000'' and inserting in lieu thereof 
        ``$404,000,000''.
    (b) National Aeronautics and Space Administration Activities.--(1) 
Section 202(a) of the High-Performance Computing Act of 1991 (15 U.S.C. 
5522(a)) is amended to read as follows:
    ``(a) General Responsibilities.--As part of the Program described 
in title I, the National Aeronautics and Space Administration shall--
            ``(1) conduct basic and applied research in high-
        performance computing, particularly in the field of 
        computational science, with emphasis on aerospace sciences, 
        earth and space sciences, and remote exploration and 
        experimentation; and
            ``(2) provide for the development of technologies needed 
        for digital libraries and electronic information.''.
    (2) Section 202(b) of the High-Performance Computing Act of 1991 
(15 U.S.C. 5522(b)) is amended by striking ``$134,000,000'' and 
inserting in lieu thereof ``$154,000,000''; and by striking 
``$151,000,000'' and inserting in lieu thereof ``$181,000,000''.
    (c) Role of Department of Education.--Section 206 of the High-
Performance Computing Act of 1991 (15 U.S.C. 5526) is amended to read 
as follows:

``SEC. 206. ROLE OF THE DEPARTMENT OF EDUCATION.

    ``(a) General Responsibilities.--As part of the Program described 
in title I--
            ``(1) the Secretary of Education is authorized to conduct 
        basic and applied research in computational research with the 
        emphasis on the coordination of activities with libraries, 
        school facilities, and educational research groups with respect 
        to the advancement and dissemination of computer science and 
        the development, evaluation, and application of software 
        capabilities; and
            ``(2) the Department of Education, in cooperation with the 
        National Science Foundation and other agencies as appropriate, 
        shall provide for the development of advanced computing and 
        networking technology at all educational levels; the 
        development and use of technologies needed for digital 
        libraries of computerized data and information; and the 
        development and implementation of training programs for 
        teachers, students, and librarians in the use of local and 
        national computer networks.
    ``(b) Authorizations of Appropriations.--From sums otherwise 
authorized to be appropriated to the Department of Education, there are 
authorized to be appropriated for the purposes of carrying out 
responsibilities under subsection (a) of this section, $11,900,000 for 
fiscal year 1994; $22,100,000 for fiscal year 1995; and $2,300,000 for 
fiscal year 1996.''.

SEC. 605. APPLICATIONS FOR MANUFACTURING AND INFORMATION.

    Section 204 of the High-Performance Computing Act of 1991 (15 
U.S.C. 5524) is amended--
            (1) in subsection (a)(1), by striking ``and'' at the end of 
        subparagraph (B), and by inserting after subparagraph (C) the 
        following new subparagraph:
                    ``(D) develop, refine, test, and transfer, in 
                coordination with other agencies when appropriate, 
                advanced computer-integrated, electronically-networked 
                manufacturing technologies and associated applications; 
                and'';
            (2) in subsection (a), by striking the period at the end of 
        paragraph (2) and inserting in lieu thereof ``; and''; and by 
        adding at the end the following new paragraph:
    ``(3) the Secretary of Commerce and, as appropriate, other Federal 
officials shall, in consultation with the Superintendent of Documents, 
identify and support projects to develop and apply high-performance 
computing and high-speed networking technologies to provide improved 
public access to information generated by Federal, State, and local 
governments, including environmental monitoring information.''; and
            (3) in subsection (d)--
                    (A) in paragraph (1), by inserting ``(other than 
                Advanced Manufacturing Program activities)'' after 
                ``Program'' and by striking ``and'' at the end of the 
                paragraph;
                    (B) by striking the period at the end of paragraph 
                (2) and inserting in lieu thereof ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(3) to the Secretary of Commerce to carry out Program activities 
under subsection (a)(3), $30,000,000 for fiscal year 1994 and 
$50,000,000 for fiscal year 1995.''.

SEC. 606. APPLICATIONS IN ENERGY AND OTHER AREAS.

    Section 203 of the High-Performance Computing Act of 1991 (15 
U.S.C. 5523) is amended by adding at the end the following new 
subsection:
    ``(f) Applications.--(1) The Secretary of Energy shall, consistent 
with the Program, develop, test, and apply high-performance computing 
and high-speed networking technologies in areas within the Department's 
missions, including--
            ``(A) energy demand management and control, including 
        vehicle efficiency and utilization, energy efficiency in 
        commercial and residential buildings, and industry energy use 
        and practices;
            ``(B) environmental monitoring, modeling, and remediation;
            ``(C) manufacturing;
            ``(D) materials;
            ``(E) the generation of electricity and the production and 
        consumption of oil, natural gas, and coal; and
            ``(F) other areas in which the Department's computing 
        expertise may assist industry and others, including 
        applications in health care, education and training, financial 
        services, and law enforcement.
    ``(2) The Secretary of Energy shall provide for cooperative 
projects involving the Department of Energy and one or more Department 
of Energy laboratories and appropriate non-Federal entities in carrying 
out this subsection.
    ``(3) In carrying out projects under paragraph (2), the Secretary 
of Energy shall, where appropriate, seek to address the technical and 
other considerations critical to further development of the 
technologies and applications useful for a national information 
infrastructure.
    ``(4) There is authorized to be appropriated to the Secretary of 
Energy for purposes of this subsection, $50,000,000 for fiscal year 
1994, $100,000,000 for fiscal year 1995, and $150,000,000 for fiscal 
year 1996.''.

SEC 607. APPLICATIONS FOR HEALTH CARE; ACCESS TO NETWORKS.

    The High-Performance Computing Act of 1991 (15 U.S.C. 5501 et seq.) 
is amended--
            (1) by redesignating sections 207 and 208 as sections 209 
        and 210, respectively; and
            (2) by adding after section 206 the following new sections:

``SEC. 207. ROLE OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.

    ``(a) General Responsibilities.--As part of the Program described 
in title I, the Secretary of Health and Human Services shall, through 
the Public Health Service, the National Institutes of Health, the 
National Library of Medicine, and the Centers for Disease Control and 
Prevention, in cooperation with the National Science Foundation and 
other appropriate agencies, develop and support the development of 
interoperable technologies for applications of high-performance 
computing and high-speed networking in the health care sector. In 
developing these technologies, emphasis shall be placed on applications 
that can produce significant savings in national health care costs. 
Such technologies shall, when feasible, build on existing Federal 
programs for developing information technology applications in the 
health care sector.
    ``(b) Authorization of Appropriations.--From sums otherwise 
authorized to be appropriated, there are authorized to be appropriated 
to the Department of Health and Human Services for the purposes of this 
section, $9,000,000 for fiscal year 1993, $30,000,000 for fiscal year 
1994, and $50,000,000 for fiscal year 1995.

``SEC. 208. ACCESS TO NETWORKS.

    ``(a) Connections Program.--The National Science Foundation, the 
Department of Education, Department of Commerce, particularly the 
National Telecommunications and Information Administration, and other 
appropriate agencies shall--
            ``(1) foster the creation of computer networks, including 
        but not limited to high-performance computer networks, in 
        geographical areas which will connect institutions of higher 
        education, elementary and secondary schools, libraries and 
        depository libraries, and Federal, State, and local governments 
        to each other; and
            ``(2) provide for connection of such networks to other 
        networks.
    ``(b) Training.--The National Science Foundation, the Department of 
Education, the Department of Commerce, particularly the National 
Telecommunications and Information Administration, and other 
appropriate agencies shall provide for programs to train teachers, 
students, librarians, and Federal, State, and local government 
personnel in the use of local and national computer networks. Training 
programs for librarians shall be designed to provide skills and 
training materials needed by librarians to instruct the public in the 
use of hardware and software for accessing and using local and national 
computer networks.
    ``(c) Report.--The Director shall, within 1 year after the date of 
enactment of the Information Technology Applications Act of 1994, 
submit a report to Congress which shall include--
            ``(1) findings of an examination of the extent to which the 
        education and library communities and State and local 
        governments have access to local and national networks;
            ``(2) a statement of the extent to which connections to 
        local and national networks exist for the education and library 
        communities and State and local governments;
            ``(3) an assessment of the factors limiting access by 
        schools, libraries, and State and local governments to local 
        and national networks and an estimate of the cost of providing 
        universal access for those institutions to those networks; and
            ``(4) recommendations for collaborative programs among 
        Federal, State, and local governments and the private sector to 
        expand connectivity to local and national computer networks for 
        educational institutions, libraries, and Federal, State, and 
        local governments.
    ``(d) Authorization of Appropriations.--To carry out the purposes 
of this section, there are authorized to be appropriated--
            ``(1) to the National Science Foundation, $5,000,000 for 
        fiscal year 1994 and $12,500,000 for fiscal year 1995; and
            ``(2) to the Department of Education, $5,000,000 for fiscal 
        year 1994 and $12,500,000 for fiscal year 1995.''.

SEC. 608. HIGH-PERFORMANCE COMPUTING AND APPLICATIONS ADVISORY 
              COMMITTEE.

    Section 101(b) of the High-Performance Computing Act of 1991 (15 
U.S.C. 5511(b)) is amended to read as follows:
    ``(b) High-Performance Computing and Applications Advisory 
Committee.--The Director shall establish an advisory committee on high-
performance computing and applications consisting of non-Federal 
members, including representatives of the research, elementary and 
secondary education, higher education, and library communities, 
consumer and public interest groups, network providers, and the 
computer, telecommunications, information and publishing industries, 
and other groups who use networks, who are specially qualified to 
provide the Director with advice and information on high-performance 
computing and on applications of computing and networking. The Director 
shall consider the recommendations of the advisory committee in 
reviewing and revising the Program. The advisory committee shall 
provide the Director with an independent assessment of--
            ``(1) progress in implementing the Program;
            ``(2) the need to revise the Program;
            ``(3) the balance between the components of the activities 
        undertaken pursuant to this Act;
            ``(4) whether the research, development, and demonstration 
        projects undertaken pursuant to this Act are helping to 
        maintain United States leadership in computing and networking 
        technologies and in the application of those technologies;
            ``(5) whether the applications and technologies developed 
        under the Program are successfully addressing the needs of 
        targeted populations, including assessment of the number of 
        users served by those applications; and
            ``(6) other issues identified by the Director.''.

SEC. 609. NATIONAL RESEARCH AND EDUCATION NETWORK PROGRAM.

    Section 102 of the High-Performance Computing Act of 1991 (15 
U.S.C. 5512) is amended to read as follows:

``SEC. 102. NATIONAL RESEARCH AND EDUCATION NETWORK PROGRAM.

    ``(a) Establishment.--As part of the Program described in section 
101, the National Science Foundation, the Department of Defense, the 
Department of Energy, the Department of Commerce, the National 
Aeronautics and Space Administration, the Department of Education, and 
other agencies participating in the Program shall, in consultation with 
the Superintendent of Documents, support the establishment of the 
National Research and Education Network Program. The Network Program 
shall consist of the following components:
            ``(1) Research and development of software and hardware for 
        high-performance computing and high-speed networks.
            ``(2) Support of experimental test bed networks for--
                    ``(A) developing and demonstrating advanced 
                networking technologies resulting from the activities 
                described in paragraph (1); and
                    ``(B) providing connections and associated network 
                services for purposes consistent with this Act.
            ``(3) Provision of support for researchers, educators, 
        students, libraries, and other appropriate institutions in 
        order to ensure their access and use of networks.
            ``(4) Federal networks for linking Federal agency 
        facilities and personnel to each other and to non-Federal 
        networks.
    ``(b) Program Requirements.--The Network Program shall--
            ``(1) be closely coordinated with the computer hardware, 
        computer software, telecommunications, and information 
        industries, and network users in government, industry, and 
        research and educational institutions;
            ``(2) foster and encourage competition and private sector 
        investment in networking within the telecommunications 
        industry;
            ``(3) promote and encourage research and development 
        leading to the creation of data transmission standards, 
        enabling the establishment of privately developed high-speed 
        commercial networks;
            ``(4) provide for the appropriate application of Federal 
        laws that provide network and information resources security, 
        including those that protect intellectual property rights, 
        control access to data bases, and protect national security;
            ``(5) enable interoperability of Federal and non-Federal 
        computer networks, to the extent appropriate, in a way that 
        allows autonomy for each component network;
            ``(6) promote the research and development of high-capacity 
        and high-speed computing networks, including related 
        applications; and
            ``(7) demonstrate, in cooperation with users and others in 
        the private sector, how advanced computers, high-capacity and 
        high-speed computing networks, and data bases can contribute to 
        the national information infrastructure.
    ``(c) Network Access Plan.--The Federal agencies participating in 
activities under this section shall develop a plan with specific goals 
for implementing the requirements of subsection (a)(3), including 
provision for financial assistance to educational institutions, public 
libraries, and other appropriate entities. This plan shall be submitted 
to the Congress not later than one year after the date of enactment of 
the Information Technology Applications Act of 1994. Each year 
thereafter, the Director shall report to Congress on progress in 
implementing subsection (a)(3).
    ``(d) Department of Defense Responsibilities.--As part of the 
Program, the Department of Defense, through the Advanced Research 
Projects Agency, shall support research and development of advanced 
fiber optics technology, switches, and protocols.
    ``(e) Information Services.--The Director shall assist the 
President in coordinating the activities of appropriate agencies to 
promote the development of information services that could be provided 
over computer networks consistent with the purposes of this Act. These 
services may include the provision of directories of the users and 
services on computer networks, data bases of unclassified Federal data, 
training of users of data bases and computer networks, and technology 
to support computer-based collaboration that facilitates research and 
education. In carrying out this section, the Director shall consult 
with the Superintendent of Documents in order to facilitate 
compatibility of information systems and eliminate unnecessary 
redundancy.
    ``(f) Use of Grant Funds.--All Federal agencies and departments are 
authorized to allow recipients of Federal research grants to use grant 
funds to pay for computer networking expenses.
    ``(g) Use of Program Funds.--(1) Each agency in the Program, when 
using Program funds for the procurement of communications networking 
services for Program activities, shall develop, provide access to, or 
use communications networks through the acquisition of commercially 
available network services or through contracting for customized 
services when such acquisition cannot satisfy agency requirements. 
Nothing in this section shall be construed to modify or otherwise 
change the Federal Property and Administrative Services Act of 1949.
    ``(2) In using Program funds to provide grants or assistance to 
non-Federal entities for the support of communications networking 
services, the head of each agency in the Program shall provide funding 
only to non-Federal entities which agree to develop, provide access to, 
or use communications networks--
            ``(A) through the acquisition of commercially available 
        communications networking services; or
            ``(B) if no such services are satisfactorily available, 
        through contracting for customized services, with the 
        determination of satisfactory availability including 
        consideration of geographic access to and affordability of 
        service, and timeliness and technical performance standards in 
        providing services.
In neither subparagraph (A) or (B) may the grantee use Federal funds 
for purposes other than the purposes for which they are awarded.
    ``(3) The provisions of this subsection shall apply only to 
procurements, grants, or agreements for assistance entered into by 
Program agencies for Program activities after the date of enactment of 
the Information Technology Applications Act of 1994.''.

SEC. 610. SUPPORT FOR COMPUTER EDUCATION PROGRAMS.

    (a) Education Project.--The Administrator of the National 
Aeronautics and Space Administration (hereafter in this section 
referred to as the `Administrator') shall establish a Computer 
Technologies for K-12 Education Project (hereafter in this section 
referred to as the `Project') to test and demonstrate educational 
applications of advanced computer technologies, including but not 
limited to high-performance computing technologies, in public school 
systems providing precollege education. The Project shall award, on a 
competitive basis, grants to plan, deploy, manage, and operate advanced 
educational applications of computer technologies in K-12 public school 
systems in the United States in response to proposals requested by the 
Administrator. The Administrator shall ensure that non-Federal funds 
committed to support such proposals shall amount to not less than 30 
percent of the Federal grant from the Project.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the National Aeronautics and Space Administration 
$8,000,000 for each of the fiscal years 1994 and 1995, to carry out the 
provisions of paragraph (1). No funds shall be awarded under the 
Project other than through the competitive process established by the 
Administrator pursuant to this section.

SEC. 611. SUPPORT FOR STATE-BASED DIGITAL LIBRARIES.

    (a) Program To Support Digital Libraries.--The National Science 
Foundation, in consultation with the Department of Education, the 
Department of Commerce, the Advanced Research Projects Agency, the 
Library of Congress, the Superintendent of Documents, and other 
appropriate agencies, is authorized to initiate a competitive, merit-
based program to support the efforts of States and, as appropriate, 
libraries to develop electronic libraries. In carrying out this 
section, the National Science Foundation shall consult with the 
Superintendent of Documents in order to facilitate compatibility of 
Federal information systems and eliminate unnecessary redundancy. These 
libraries shall provide delivery of and access to a variety of 
databases, computer programs, and interactive multimedia presentations, 
including educational materials, research information, statistics and 
reports developed by Federal, State, and local governments, and other 
information and informational services which can be carried over 
computer networks.
    (b) Authorization of Appropriations.--To carry out the provisions 
of this section, there are authorized to the Director of the National 
Science Foundation $10,000,000 for fiscal year 1994, and $25,000,000 
for fiscal year 1995.
    (c) Copyright Law.--Nothing in this section shall be construed to 
modify or otherwise change any provision of title 17, United States 
Code.

SEC. 612. SUPPORT FOR COMPUTING ACTIVITIES AT TRIBAL COLLEGES.

    The Director of the National Science Foundation shall design and 
implement a pilot program to provide financial assistance, through 
competitive selection processes, to States in which are located two or 
more tribally-controlled community colleges. The objective of the pilot 
program shall be to institute interactive telecommunications systems 
among such tribally controlled community colleges in such States, so as 
to assist the tribal community in education, job training, and other 
appropriate activities.

SEC. 613. DEPARTMENT OF EDUCATION SUPPORT FOR COMPUTER EDUCATION 
              PROGRAMS.

    (a) Education Project.--In addition to the general responsibilities 
set forth in section 206 of the High-Performance Computing Act of 1991 
(15 U.S.C. 5526), the Department of Education, in cooperation as 
appropriate with other Federal agencies, shall establish a project to 
test and demonstrate educational applications of advanced computer 
technologies, including but not limited to high-performance computing 
and networking technologies, in school systems providing precollege 
education. This project shall award, on a competitive basis, grants to 
plan, deploy, manage, and operate advanced educational applications of 
computer technologies in response to proposals requested by the 
Secretary of Education. The Secretary of Education shall ensure that 
non-Federal funds committed to such proposals shall amount to not less 
than 30 percent of the Federal grant.
    (b) Authorization of Appropriations.--From sums otherwise 
authorized to be appropriated to the Department of Education, there are 
authorized to be appropriated to carry out the provisions of this 
section, $8,000,000 for each of the fiscal years 1994 and 1995. No 
funds shall be awarded under the provisions of subsection (a) other 
than through the competitive process established by the Secretary of 
Education pursuant to this section.

               TITLE VII--FASTENER QUALITY ACT AMENDMENTS

SEC. 701. FASTENER QUALITY ACT AMENDMENTS.

    (a) Technical Amendments.--(1) Section 3 of the Fastener Quality 
Act (15 U.S.C. 5402) is amended--
            (A) in paragraph (8), by striking ``Standard'' and 
        inserting in lieu thereof ``Standards''; and
            (B) in paragraph (14), by striking ``which defines or 
        describes'' and all that follows through ``of any fastener''.
    (2) Section 5(b)(1) of the Fastener Quality Act (15 U.S.C. 
5404(b)(1)) is amended by striking ``section 6; unless'' and inserting 
in lieu thereof ``section 6, unless''.
    (3) Section 7(c)(2) of the Fastener Quality Act (15 U.S.C. 
5406(c)(2)) is amended by inserting ``to the same'' before ``extent''.
    (b) Clarifying Amendments.--(1) Section 5(a)(1)(B) of the Fastener 
Quality Act (15 U.S.C. 5404(a)(1)(B)) is amended by striking 
``subsections (b) and (c)'' and inserting in lieu thereof ``subsections 
(b), (c), and (d)''.
    (2) Section 5(a)(2)(A)(i) of the Fastener Quality Act (15 U.S.C. 
5404(a)(2)(A)(i)) is amended by striking ``subsections (b) and (c)'' 
and inserting in lieu thereof ``subsections (b), (c), and (d)''.
    (3) Section 5(c)(4) of the Fastener Quality Act (15 U.S.C. 
5404(c)(4)) is amended by inserting ``except as provided in subsection 
(d),'' before ``state''.
    (4) Section 5 of the Fastener Quality Act (15 U.S.C. 5404) is 
amended by adding at the end the following new subsection:
    ``(d) Alternative Procedure for Chemical Characteristics.--
Notwithstanding the requirements of subsections (b) and (c), a 
manufacturer shall be deemed to have demonstrated, for purposes of 
subsection (a)(1), that the chemical characteristics of a lot conform 
to the standards and specifications to which the manufacturer 
represents such lot has been manufactured if the following requirements 
are met:
            ``(1) The coil or heat number of metal from which such lot 
        was fabricated has been inspected and tested with respect to 
        its chemical characteristics by a laboratory accredited in 
        accordance with the procedures and conditions specified by the 
        Secretary under section 6.
            ``(2) Such laboratory has provided to the manufacturer, 
        either directly or through the metal manufacturer, a written 
        inspection and testing report, which shall be in a form 
        prescribed by the Secretary by regulation, listing the chemical 
        characteristics of such coil or heat number.
            ``(3) The report described in paragraph (2) indicates that 
        the chemical characteristics of such coil or heat number 
        conform to those required by the standards and specifications 
        to which the manufacturer represents such lot has been 
        manufactured.
            ``(4) The manufacturer demonstrates that such lot has been 
        fabricated from the coil or heat number of metal to which the 
        report described in paragraphs (2) and (3) relates.
In prescribing the form of report required by subsection (c), the 
Secretary shall provide for an alternative to the statement required by 
subsection (c)(4), insofar as such statement pertains to chemical 
characteristics, for cases in which a manufacturer elects to use the 
procedure permitted by this subsection.''.
    (c) Sale of Fasteners Subsequent To Manufacture.--Section 7 of the 
Fastener Quality Act (15 U.S.C. 5406) is amended--
            (1) in subsection (e)(1)--
                    (A) by striking ``or any person who purchases any 
                quantity of fasteners for resale at wholesale'' and 
                inserting in lieu thereof ``, importer, or private 
                label distributor''; and
                    (B) by striking ``or such person'' and inserting in 
                lieu thereof ``, importer, or private label 
                distributor'';
            (2) by adding at the end of subsection (e) the following 
        new paragraph:
    ``(3) Notwithstanding paragraph (1), fasteners may be sold to an 
end user in commingled lots if--
            ``(A) any packaging of such fastener includes a conspicuous 
        disclaimer message indicating that the fasteners are 
        manufactured and tested in compliance with this Act but have 
        been commingled with like items from different lots; and
            ``(B) the person selling such fasteners has a written 
        statement from the end user purchasing such fasteners granting 
        permission to the seller to provide commingled lots.
A written statement described in subparagraph (B) shall be kept on file 
for at least 10 years for any later review or audit.''; and
            (3) by amending subsection (f) to read as follows:
    ``(f) Subsequent Purchaser.--It shall be unlawful for any person to 
sell fasteners, of any quantity, to any end user who requests lot 
traceability, unless the container of fasteners sold is conspicuously 
marked with the number of the lot from which such fasteners were 
taken.''.

             TITLE VIII--PRIVATE CARRIAGE OF URGENT LETTERS

SEC. 801. PRIVATE CARRIAGE OF URGENT LETTERS.

    It is the sense of the Congress that the United States Postal 
Service, in the administration of chapter 6 of title 39, United States 
Code, shall suspend its audits by the Postal Inspection Service of 
private businesses or individuals who use private express for the 
private carriage of any letter which such business or individual 
determines is urgent, until the Congress receives and considers a 
report by the General Accounting Office regarding the potential 
financial impact on the Postal Service of permanently suspending 
enforcement of chapter 6, of title 39, United States Code.

               TITLE IX--REGULATORY FLEXIBILITY ANALYSIS

SEC. 901. DEFINITIONS.

    Section 601 of title 5, United States Code is amended--
            (1) in paragraph (5) by striking out ``and'' at the end 
        thereof;
            (2) in paragraph (6) by striking out the period and 
        inserting in lieu thereof a semicolon and ``and''; and
            (3) by adding at the end thereof the following new 
        paragraph:
            ``(7) the term `impact' means effects of a proposed or 
        final rule which an agency can anticipate at the time of 
        publication, and includes those effects which are directly and 
        indirectly imposed by the proposed or final rule and are 
        beneficial and negative.''.

SAC. 902. INITIAL REGULATORY FLEXIBILITY ANALYSIS.

    Section 603 of title 5, United States Code, is amended--
    (1) in subsection (a)--
                    (A) in the first sentence by inserting ``as defined 
                under section 601(2)'' after ``any proposed rule''; and
                    (B) in the second sentence by striking out ``the 
                impact'' and inserting thereof ``both the direct and 
                indirect impacts'';
            (2) in subsection (b)(3) by striking out ``apply'' and 
        inserting in lieu thereof ``directly apply and an estimate of 
        the number of small entities to which the rule will indirectly 
        apply''; and
            (3) in subsection (c) in the first sentence by inserting 
        before the period ``either directly or indirectly effected''.

SEC. 903. FINAL REGULATORY FLEXIBILITY ANALYSIS.

    Section 604(a) of title 5, United States Code, is amended in the 
first sentence by striking out ``under section 553 of this title, after 
being required by that section or any other law to publish a general 
notice of proposed rulemaking'' and inserting in lieu thereof ``as 
defined under section 610(2)''.

SEC. 904. JUDICIAL REVIEW.

    Section 611(b) of title 5, United States Code, is repealed.

                           TITLE X--COUNTER-

                              INTELLIGENCE

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``Counterintelligence Improvements 
Act of 1994''.

SEC. 1002. AMENDMENT TO THE NATIONAL SECURITY ACT OF 1947.

    The National Security Act of 1947 (50 U.S.C. 401 et seq.) is 
amended by inserting at the end thereof the following new title:

             ``TITLE VIII--ACCESS TO TOP SECRET INFORMATION

           ``eligibility for access to top secret information

    ``Sec. 801. (a) The President and Vice President, Members of the 
Congress, Justices of the Supreme Court and judges of other courts of 
the United States established pursuant to Article III of the 
Constitution, shall, by virtue of their elected or appointed positions, 
be entitled to access to Top Secret information needed for the 
performance of their governmental functions without regard to the other 
provisions of this title.
    ``(b) Among employees of the United States Government, access to 
Top Secret information shall be limited to employees;
            ``(1) who have been granted access to such information 
        pursuant to this title;
            ``(2) who are citizens of the United States who require 
        routine access to such information for the performance of 
        official governmental functions; and
            ``(3) who have been determined to be trustworthy based upon 
        a background investigation and appropriate reinvestigations and 
        have otherwise satisfied the requirements of section 802, 
        below.
    ``(c) Access to Top Secret information by persons other than those 
identified in subsections (a) and (b) shall be permitted only in 
accordance with the regulations issued by the President pursuant to 
section 802 below.

                        implementing regulations

    ``Sec. 802. The President shall, within 180 days of enactment of 
this title, issue regulations to implement this title which shall be 
binding upon all departments, agencies, and offices of the Executive 
branch. These regulations shall, at a minimum provide that--
            (A) no employee of the United States Government shall be 
        given access to Top Secret information owned, originated or 
        possessed by United States, after the effective date of this 
        title, by any department, agency, or entity of the United 
        States Government unless such person has been subject to an 
        appropriate background investigation and has--
                    ``(1) provided consent to the investigative agency 
                responsible for conducting the security investigation 
                of such person, during the initial background 
                investigation and for such times as access to such 
                information is maintained, and for 5 years thereafter, 
                permitting access to--
                            (a) financial records concerning the 
                        subject pursuant to section 1104 of the Right 
                        to Financial Privacy Act of 1978;
                            ``(b) consumer reports concerning the 
                        subject pursuant to section 1681b of the 
                        Consumer Credit Protection Act; and
                            ``(c) records maintained by commercial 
                        entities within the United States pertaining to 
                        any travel by the subject outside the United 
                        States: Provided, That--
                                    ``(i) no information may be 
                                requested by an authorized 
                                investigative agency pursuant to this 
                                section for any purpose other than 
                                making a security determination;
                                    ``(ii) where the person concerned 
                                no longer has access to Top Secret 
                                information, no information may be 
                                requested by an authorized 
                                investigative agency pursuant to this 
                                section unless such agency has 
                                reasonable grounds to believe, based 
                                upon specific and articulable facts 
                                available to it, that such person may 
                                pose a threat to the continued security 
                                of the information to which he or she 
                                had previously had access; and
                                    ``(iii) any information obtained by 
                                an authorized investigative agency 
                                pursuant to this section shall not be 
                                disseminated to any other department, 
                                agency, or entity for any purpose other 
                                than for making a security 
                                determination, or for foreign 
                                counterintelligence or law enforcement 
                                purposes;
                    ``(2) agreed, during the period of his or her 
                access, to report to the department, agency, or entity 
                granting such access in accordance with applicable 
                regulations, any travel to foreign countries which has 
                not been authorized as part of the subject's official 
                duties;
                    ``(3) agreed to report to the Federal Bureau of 
                Investigation, or to appropriate investigative 
                authorities of the department, agency, or entity 
                concerned, any unauthorized contacts with persons known 
                to be foreign nationals or persons representing foreign 
                nationals, where an effort to acquire classified 
                information is made by the foreign national, or where 
                such contacts appear intended for this purpose. For 
                purposes of this subsection, the term `unauthorized 
                contacts' does not include contacts made within the 
                context of an authorized diplomatic relationship. 
                Failure by the employee to comply with any of the 
                requirements of this subsection shall constitute 
                grounds for denial or termination of access to the Top 
                Secret information concerned.
            ``(B) all employees granted access to Top Secret 
        information pursuant to this subsection shall also be subject 
        to--
                    ``(1) additional background investigations by 
                appropriate governmental authorities during the period 
                of access at no less frequent interval than every 5 
                years, except that any failure to satisfy this 
                requirement that is not solely attributable to the 
                subject of the investigation shall not result in a loss 
                or denial of access; and
                    ``(2) investigation by appropriate governmental 
                authority at any time during the period of access to 
                ascertain whether such persons continue to meet the 
                requirements for access.
            ``(C) access to Top Secret information by categories of 
        persons who do not meet the requirements of subsections (A) and 
        (B) of this section may be permitted only where the President, 
        or officials designated by the President for this purpose, 
        determine that such access is essential to protect or further 
        the national security interests of the United States.
            ``(D) a single office within the Executive branch shall be 
        designated to monitor the implementation and operation of this 
        title within the Executive branch. This office shall submit an 
        annual report to the President and appropriate committees of 
        the Congress, describing the operation of this title and 
        recommending needed improvements. A copy of the regulations 
        implementing this title shall be provided to the Select 
        Committee on Intelligence of the Senate and the Permanent 
        Select Committee on Intelligence of the House of 
        Representatives thirty days prior to their effective date.

                     ``waivers for individual cases

    ``Sec. 803. In extraordinary circumstances, when essential to 
protect or further the national security interests of the United 
States, the President (or officials designated by the President for 
this purpose) may waive the provisions of this title, or the provisions 
of the regulations issued pursuant to section 802, above, in individual 
cases involving persons who are citizens of the United States or are 
persons admitted into the United States for permanent residence: 
Provided, That all such waivers shall be made a matter of record and 
reported to the office designated pursuant to section 802(D), above, 
and shall be available for review by the Select Committee on 
Intelligence of the Senate and the Permanent Select Committee of the 
House of Representatives.

                             ``definitions

    ``Sec. 804. For purposes of this title--
            ``(a) the term `national security' refers to the national 
        defense and foreign relations of the United States;
            ``(b) the phrases `information classified in the interest 
        of national security' or `classified information' means any 
        information originated by or on behalf of the United States 
        Government, the unauthorized disclosure of which would cause 
        damage to the national security, which has been marked and is 
        controlled pursuant to the Executive Order 12356 of April 2, 
        1982, or successor orders, or the Atomic Energy Act of 1954;
            ``(c) the term `Top Secret information' means information 
        classified in the interests of national security, the 
        unauthorized disclosure of which would cause exceptionally 
        grave damage to the national security;
            ``(d) the term `employee' includes any person who receives 
        a salary or compensation of any kind from the United States 
        Government, is a contractor of the United States Government, is 
        an unpaid consultant of the United States Government, or 
        otherwise acts for or on behalf of the United States 
        Government, but does not include the President or Vice 
        President of the United States, Members of the Congress of the 
        United States, Justices of the Supreme Court or judges of other 
        federal courts established pursuant to Article III of the 
        Constitution; and
            ``(e) the term ``authorized investigative agency'' means an 
        agency authorized by law or regulation to conduct 
        investigations of persons who are proposed for access to Top 
        Secret information to ascertain whether such persons satisfy 
        the criteria for obtaining and retaining access to such 
        information.

                            ``effective date

    ``Sec. 805. This title shall take effect 180 days after the date of 
its enactment.''.

SEC. 1003. PROTECTION OF CRYPTOGRAPHIC INFORMATION.

    The National Security Act of 1947 (50 U.S.C. 401 et seq.), as 
amended by section 1002, is further amended by inserting at the end the 
following new title:

          ``TITLE IX--PROTECTION OF CRYPTOGRAPHIC INFORMATION

    ``Sec. 901. (a) Requirements for Access to Cryptographic 
Information.--(1) Any employee of a department or agency within the 
Executive branch who is granted access to classified cryptographic 
information or routine, recurring access to any space in which 
classified cryptographic key is produced or processed, or is assigned 
responsibilities as a custodian of classified cryptographic key, shall, 
as a condition of receiving such access, or being assigned such 
responsibilities, and at a minimum:
            ``(A) meet the requirements applicable to persons having 
        access to Top Secret information, as defined in subsection 
        804(c) of this Act, (as added by section 1002 of the 
        Counterintelligence Improvements Act of 1994); and
            ``(B) be subject to periodic polygraph examinations 
        conducted by appropriate governmental authorities, limited in 
        scope to questions of a counterintelligence nature, during the 
        period of access.
    ``(2) Failure to submit to an examination required under paragraph 
(1) shall be grounds for removal from access to cryptographic 
information or spaces.
    ``(3) No person shall be removed from access to cryptographic 
information or spaces based solely upon the interpretation of the 
results produced by a polygraph instrument, measuring physiological 
resources, unless, after further investigation, the head of the 
department or agency concerned determines the risk to the national 
security in permitting such access to be so potentially grave that 
access must nonetheless be denied.
    ``(b) Definitions.--For purposes of this section--
            ``(1) the term `classified cryptographic information' means 
        any information classified by the United States Government 
        pursuant to law or Executive order concerning the details of 
        (A) the nature, preparation, or use of any code, cipher, or 
        cryptographic system of the United States; or (B) the design, 
        construction, use, maintenance, or repair of any cryptographic 
        equipment; Provided, however, That the term does not include 
        information concerning the use of cryptographic systems or 
        equipment required for personal or office use;
            ``(2) the phrase `custodian of classified cryptographic 
        key' means positions that require access to classified 
        cryptographic key beyond that required to use or operate 
        cryptographic equipment for personal or office use, future 
        editions of classified cryptographic key, or classified 
        cryptographic key used for multiple devices;
            ``(3) the term `classified cryptographic key' means any 
        information (usually a sequence of random binary digits), in 
        any form, classified by the United States Government pursuant 
        to law or Executive order that is used to set up and 
        periodically change the operations performed by any 
        cryptographic equipment;
            ``(4) the term `cryptographic equipment' means any device, 
        apparatus or appliance used, or prepared, or planned for use by 
        the United States for the purpose of authenticating 
        communications or disguising or concealing the contents, 
        significance, or meanings of communications;
            ``(5) the term `employee' includes any person who receives 
        a salary or compensation of any kind from a department or 
        agency of the Executive branch, or is a contractor or unpaid 
        consultant of such department or agency;
            ``(6) the term `head of a department or agency' refers to 
        the highest official who exercises supervisory control over the 
        employee concerned, and does not include any intermediate 
        supervisory officials who may otherwise qualify as heads of 
        agencies within departments; and
            ``(7) the phrase `questions of a counterintelligence 
        nature' means questions specified to the subject in advance of 
        a polygraph examination solely to ascertain whether the subject 
        is engaged in, or planning, espionage against the United States 
        on behalf of a foreign government or knows persons who are so 
        engaged.
    ``Sec. 902. Implementing Regulations.--The President shall, within 
180 days of the date of enactment of this title, promulgate regulations 
to implement the provisions of this title. The President shall provide 
copies of such regulations to the Select Committee on Intelligence of 
the Senate and the Permanent Select Committee on Intelligence of the 
House of Representatives.''.

SEC. 1004. AMENDMENT TO RIGHT TO FINANCIAL PRIVACY ACT.

    Section 1104 of the Right to Financial Privacy Act of 1978 (12 
U.S.C. 3404) is amended by adding at the end thereof the following new 
subsection:
    ``(d)(1) Notwithstanding the provisions of subsection (a), a 
customer who is the subject of a personnel security investigation 
conducted by an authorized investigative agency of the U.S. Government 
as a condition of being granted or maintaining access to Top Secret 
information, as defined by section 804(c) of the National Security Act 
of 1947 (as added by section 1002 of the Counterintelligence 
Improvements Act of 1994), may authorize nonrevokable disclosure of all 
financial records maintained by financial institutions for the period 
of the customer's access to such information and for up to 5 years 
after access to such information has been terminated, by the 
investigative agency responsible for the conduct of such investigation, 
for an authorized security purpose.
    ``(2) Such authority shall be contained in a signed and dated 
statement of the customer which identifies the financial records which 
are authorized to be disclosed. Such statement may also authorize the 
disclosure of financial records of accounts opened during the period 
covered by the consent agreement which are not identifiable at the time 
such consent is provided. A copy of such statement shall be provided by 
the investigative agency concerned to the financial institution from 
which disclosure is sought, together with the certification required 
pursuant to section 1103(b) (12 U.S.C. 3403(b)).
    ``(3) The rights of the customer established by subsection (c), 
above, shall pertain to any disclosures made pursuant to this 
subsection.
    ``(4) On an annual basis, the office designated by President 
pursuant to section 802(D) of the National Security Act of 1947 (as 
added by section 1002 of the Counterintelligence Improvements Act of 
1994), shall fully inform the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select Committee 
on Intelligence of the Senate concerning the number of requests for 
financial records made pursuant to this section.''.

SEC. 1005. NEW CRIMINAL OFFENSE FOR THE POSSESSION OF ESPIONAGE 
              DEVICES.

    (a) In General.--Chapter 37 of title 18, United States Code, is 
amended by inserting at the end thereof the following new section:

                   ``possession of espionage devices

    ``Sec. 799a. Whoever knowingly maintains possession of any 
electronic, mechanical, or other device or equipment the design and 
capability of which renders it primarily useful for the purpose of 
surreptitiously collecting or communicating information, with the 
intent of utilizing such device or equipment to undertake actions which 
would violate section 793, 794, 794a (as added by section 1006 of the 
Counterintelligence Improvements Act of 1994), or 798 of this title, or 
section 783(b) of title 50, United States Code, shall be fined not more 
than $10,000 or imprisoned not more than 5 years, or both.''.
    (b) Amendments to table of Sections.--The table of sections for 
chapter 37 of title 18, United States Code, is amended by adding at the 
end thereof the following new item:

``799a. Possession of espionage devices.''.

SEC. 1006. NEW OFFENSE FOR SALE OR TRANSFER TO FOREIGN GOVERNMENTS 
              DOCUMENTS AND OTHER MATERIALS DESIGNATED AS TOP SECRET.

    (a) In general.--Chapter 37 of title 18, United States Code, is 
amended by inserting after section 794 the following new section:

  ``sale or transfer of documents or materials marked as `top secret'

    ``Sec. 794a. (a)(1) No person shall knowingly sell or otherwise 
transfer for any valuable consideration to any person whom he knows or 
has reason to believe to be an agent or representative of a foreign 
government--
            ``(A) any document, writing, code book, sketch, photograph, 
        map, model, instrument, equipment, electronic storage media, or 
        other material, or portion thereof, knowing that it is marked 
        or otherwise designated in any manner, pursuant to applicable 
        law and Executive order, as `Top Secret', or
            ``(B) any such document, writing, code book, sketch, 
        photograph, map, model, instrument, equipment, electronic 
        storage media, or other material, or portion thereof, which has 
        had such marking or designation removed without authority and 
        the person making the sale or transfer is aware of such 
        removal.
    ``(2) Paragraph (1) shall not be deemed to be violated by a person 
who makes such transfer pursuant to applicable law or executive branch 
authority.
    ``(b) In any prosecution under this section, whether or not the 
information or material in question has been properly marked or 
designated as ``TOP SECRET'' pursuant to applicable law or Executive 
order shall not be an element of the offense: Provided, however, That 
it shall be a defense to any prosecution under this section that the 
information or document in question has been officially released to the 
public by an authorized representative of the United States prior to 
the sale or transfer in question.
    ``(c) Violation of this section shall be punishable by imprisonment 
for a maximum of 15 years.''.
    (b) Amendments to Table of Sections.--The table of sections for 
chapter 37 of title 18, United States Code, is amended by inserting 
after the item relating to section 794 the following new item:

``794a. Sale or transfer of documents or materials marked as `Top 
                            Secret'.''

SEC. 1007. LESSER CRIMINAL OFFENSE FOR THE REMOVAL OF TOP SECRET 
              DOCUMENTS BY GOVERNMENT EMPLOYEES AND CONTRACTORS.

    (a) In General.--Chapter 93 of title 18, United States Code, is 
amended by inserting at the end thereof the following new section:

     ``removal and retention of `top secret' documents or material

    ``Sec. 1924. Whoever, being an officer, employee, contractor or 
consultant, of the United States, and having, by virtue of his office, 
employment, position, or contract, becomes possessed of documents or 
materials classified at the level of `Top Secret' pursuant to 
applicable law or Executive order, knowingly removes such documents or 
materials without authority and retains such documents or materials at 
an unauthorized location shall be fined not more than $1,000, or 
imprisoned for not more than one year, or both.''.
    (b) Amendment to Table of Sections.--The table of sections for 
chapter 93 of title 18, United States Code, is amended by adding at the 
end thereof the following new item:

``1924. Removal of `Top Secret' documents or material.''

SEC. 1008. JURISDICTION OF UNITED STATES COURTS TO TRY CASES INVOLVING 
              ESPIONAGE OUTSIDE THE UNITED STATES.

    (a) Chapter 211 of title 18 of the United States Code is amended by 
adding a new section 3239 as follows:
``Sec. 3239. Jurisdiction for espionage and related offenses
    ``The trial for any offense involving a violation of--
            ``(a) section 793, 794, 794a (as added by section 1006 of 
        the Counterintelligence Improvements Act of 1994), 798, 798a 
        (as added by section 1005 of the Counterintelligence 
        Improvements Act of 1994), or subsection 1030(a)(1) of this 
        title;
            ``(b) section 601 of the National Security Act of 1947 as 
        added by the Intelligence Identities Protection Act of 1982 (50 
        U.S.C. 421); or
            ``(c) subsections 4(b) or 4(c) of the Subversive Activities 
        Control Act of 1950 (U.S.C. 783(b) or 783(c));
begun or committed upon the high seas or elsewhere out of the 
jurisdiction of any particular state or district, may be prosecuted in 
the District of Columbia, or in the Eastern District of Virginia, or in 
any other district authorized by law.''.
    (b) The chapter analysis for chapter 211 of title 18 of the United 
States Code is amended by striking out

``[3239. Repealed.]''
and inserting in lieu thereof:

``3239. Jurisdiction for espionage and related offenses.''

SEC. 1009. EXPANSION OF EXISTING STATUTE REGARDING FORFEITURE OF 
              COLLATERAL PROFITS OF CRIME TO ADDITIONAL ESPIONAGE 
              OFFENSES.

    Section 3681 of title 18, United States Code, is amended--
            (1) in subsection (a), by striking out ``section 794 of 
        this title'' and inserting in lieu thereof ``sections 793, 794, 
        794a (as added by section 1006 of the Counterintelligence 
        Improvements Act of 1994), 798, and 799a (as added by section 
        1005 of the Counterintelligence Improvements Act of 1994) of 
        this title and section 783 of title 50, United States Code''; 
        and
            (2) by adding at the end thereof the following new 
        subsection:
    ``(e) For purposes of this section, convictions pursuant to 
military courts-martial for offenses comparable to violations of 
sections 793, 794, 794a (as added by section 1006 of the 
Counterintelligence Improvements Act of 1994), 798, and 799a (as added 
by section 1005 of the Counterintelligence Improvements Act of 1994) of 
this title, or a violation of section 783 of title 50, or convictions 
by foreign courts for offenses which, if perpetrated within the United 
States, would constitute offenses under sections 793, 794, 794a (as 
added by section 1006 of the Counterintelligence Improvements Act of 
1994), 798, and 799a (as added by section 1005 of the 
Counterintelligence Improvements Act of 1994) of this title, or a 
violation of section 783 of title 50 shall be considered as convictions 
for which actions may be ordered pursuant to this section.''.

SEC. 1010. DENIAL OF ANNUITIES OR RETIRED PAY TO PERSONS CONVICTED OF 
              ESPIONAGE IN FOREIGN COURTS INVOLVING UNITED STATES 
              INFORMATION.

    Section 8312 of title 5, United States Code, is amended by adding 
at the end thereof the following new subsection:
    ``(d) For purposes of subsections (b)(1) and (c)(1), an offense 
within the meaning of such subsections is established if the Attorney 
General certifies to the agency employing or formerly employing the 
person concerned--
            ``(i) that an individual subject to this chapter has been 
        convicted by an impartial court of appropriate jurisdiction 
        within a foreign country in circumstances in which the conduct 
        violates the provisions of law enumerated in subsections (b)(1) 
        and (c)(1), or would violate such provisions, had such conduct 
        taken place within the United States, and that such conviction 
        is not being appealed or that final action has been taken on 
        such appeal;
            ``(2) that such conviction was obtained in accordance with 
        procedures that provided the defendant due process rights 
        comparable to such rights provided by the United States 
        Constitution, and such conviction was based upon evidence which 
        would have been admissible in the courts of the United States; 
        and
            ``(3) that such conviction occurred after the date of 
        enactment of this subsection:
Provided, That any certification made pursuant to this paragraph shall 
be subject to review by the United States Court of Claims based upon 
the application of the individual concerned, or his or her attorney, 
alleging that any of the conditions set forth in subsections (1), (2), 
(3), herein, as certified by the Attorney General, have not been 
satisfied in his or her particular circumstances. Should the court 
determine that any of these conditions has not been satisfied in such 
case, the court shall order any annuity or retirement benefit to which 
the person concerned is entitled to be restored and shall order that 
any payments which may have been previously denied or withheld to be 
paid by the department or agency concerned.

SEC. 1011. AUTHORIZING THE FBI TO OBTAIN CONSUMER REPORTS ON PERSONS 
              BELIEVED TO BE AGENTS OF FOREIGN POWERS.

    Section 608 of the Consumer Credit Protection Act (15 U.S.C. 1681f) 
is amended--
            (1) by inserting ``(a)'' before ``Notwithstanding''; and
            (2) by inserting at the end thereof the following new 
        subsections:
    ``(b) Notwithstanding the provisions of section 604, a consumer 
reporting agency shall, upon request, furnish a consumer report to the 
Federal Bureau of Investigation, if the Director of the Federal Bureau 
of Investigation, or the Director's designee, certifies in writing to 
the consumer reporting agency that such records are sought in 
connection with an authorized foreign counterintelligence investigation 
and that there are specific and articulable facts giving reason to 
believe that the person to whom the requested consumer report relates 
is an agent of a foreign power, as defined in section 101 of the 
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801).
    ``(c) Notwithstanding the provisions of section 604, a consumer 
reporting agency shall furnish identifying information respecting any 
consumer, limited to name, address, former addresses, places of 
employment, or former places of employment, to a representative of the 
Federal Bureau of Investigation when presented with a written request 
signed by the Director of the Federal Bureau of Investigation, or the 
Director's designee, stating that the information is necessary to the 
conduct of an authorized foreign counterintelligence investigation.
    ``(d) No consumer reporting agency, or officer, employee, or agent 
of such institution shall disclose to any person that the Federal 
Bureau of Investigation has sought or obtained a consumer report or 
identifying information respecting any consumer under this section.
    ``(e) On an annual basis the Director of the Federal Bureau of 
Investigation shall fully inform the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select Committee 
on Intelligence of the Senate concerning all requests made under 
subsections (b) and (c).''.

SEC. 1012. TO PROVIDE FOR REWARDS FOR INFORMATION CONCERNING ESPIONAGE.

    (a) In General.--Chapter 204 of title 18, United States Code, is 
amended--
            (1) by inserting at the end of the chapter heading ``AND 
        ESPIONAGE'';
            (2) in section 3071, by inserting ``(a)'' immediately 
        before ``With respect to'';
            (3) in section 3071, adding at the end thereof the 
        following new subsection:
    ``(b) With respect to acts of espionage involving or directed at 
United States information classified in the interest of national 
security, the Attorney General may reward any individual who furnishes 
information--
            ``(1) leading to the arrest or conviction, in any country, 
        of any individual or individuals for commission of an act of 
        espionage against the United States;
            ``(2) leading to the arrest or conviction, in any country, 
        of any individual or individuals for conspiring or attempting 
        to commit an act of espionage against the United States; or
            ``(3) leading to the prevention or frustration of an act of 
        espionage against the United States.''.
    (b) Amount of Rewards.--Section 3072 of title 18, United States 
Code, is amended by striking out ``$500,000'' and inserting in lieu 
thereof ``$1,000,000''.
    (c) Definitions.--Section 3077 of title 18, United States Code, is 
amended by inserting at the end thereof the following new paragraphs:
            ``(8) `act of espionage' means an activity that is a 
        violation of sections 794, 794a (as added by section 1006 of 
        the Counterintelligence Improvements Act of 1994), 798, or 799a 
        (as added by section 1005 of the Counterintelligence 
        Improvements Act of 1994) of this title or section 783 of title 
        50, United States Code.
            ``(9) `United States information classified in the 
        interests of national security' means information originated, 
        owned, or possessed by the United States Government concerning 
        the national defense and foreign relations of the United States 
        that has been determined pursuant to law or Executive order to 
        require protection against unauthorized disclosure and that has 
        been so designated.''.

SEC. 1013. TO PROVIDE A COURT ORDER PROCESS FOR PHYSICAL SEARCHES 
              UNDERTAKEN FOR FOREIGN INTELLIGENCE PURPOSES.

    The Foreign Intelligence Surveillance Act of 1978 is amended by 
inserting at the end thereof the following new title:

  ``TITLE IV--PHYSICAL SEARCHES WITHIN THE UNITED STATES FOR FOREIGN 
                         INTELLIGENCE PURPOSES

 ``authorization of physical searches for foreign intelligence purposes

    ``Sec. 401. (a) Applications for a court order under this title are 
authorized if the President has, in writing, empowered the Attorney 
General to approve applications to the Foreign Intelligence 
Surveillance Court, and a judge of that court to whom application is 
made may, notwithstanding any other law, grant an order, in conformity 
with section 403, approving a physical search in the United States, for 
the purpose of collecting foreign intelligence information of--
            ``(1) the property, information or material of a foreign 
        power as defined in section 101(a)(1), (2), and (3) of this 
        Act, or
            ``(2) the premises, property, information or material of an 
        agent of a foreign power or a foreign power as defined in 
        section 101(a)(4), (5), and (6) of this Act.
    ``(b) The Foreign Intelligence Surveillance Court shall have 
jurisdiction to hear applications for and grant orders approving a 
physical search for the purpose of obtaining foreign intelligence 
information anywhere within the United States under the procedures set 
forth in this title, except that no judge shall hear the same 
application which has been denied previously by another judge. If any 
judge denies an application for an order authorizing a physical search 
under this title, such judge shall provide immediately for the record a 
written statement of each reason for his decision and, on motion of the 
United States, the record shall be transmitted, under seal, to the 
Court of Review.
    ``(c) The Court of Review shall have jurisdiction to review the 
denial of any application made under this title. If such court 
determines that the application was properly denied, the Court shall 
immediately provide for the record a written statement of each reason 
for its decision and, on petition of the United States for a writ of 
certiorari, the record shall be transmitted under seal to the Supreme 
Court, which shall have jurisdiction to review such decision.
    ``(d) Judicial proceedings under this title shall be concluded as 
expeditiously as possible. The record of proceedings under this title, 
including applications made and orders granted, shall be maintained 
under security measures established by the Chief Justice of the United 
States in consultation with the Attorney General and the Director of 
Central Intelligence.

                       ``application for an order

    ``Sec. 402. (a) Each application for an order approving a physical 
search under this title shall be made by a Federal officer in writing 
upon oath or affirmation to a judge of the Foreign Intelligence 
Surveillance Court. Each application shall require the approval of the 
Attorney General based upon the Attorney General's finding that it 
satisfied the criteria and requirements for such application as set 
forth in this title. It shall include--
            ``(1) the identity, if known, or a description of the 
        target of the search;
            ``(2) the authority conferred on the Attorney General by 
        the President of the United States and the approval of the 
        Attorney General to make the application;
            ``(3) the identity of the Federal officer making the 
        application and a detailed description of the premises or 
        property to be searched and of the information, material, or 
        property to be seized, reproduced, or altered;
            ``(4) a statement of the facts and circumstances relied 
        upon by the applicant to justify the applicant's belief that--
                    ``(A) the target of the physical search is a 
                foreign power or an agent of a foreign power;
                    ``(B) the premises or property to be searched 
                contains foreign intelligence information;
                    ``(C) the premises or property to be searched is 
                owned, used, possessed by, or is in transit to or from 
                a foreign power or an agent of a foreign power;
            ``(5) a statement of the proposed minimization procedures;
            ``(6) a statement of the manner in which the physical 
        search is to be conducted;
            ``(7) a statement of the facts concerning all previous 
        applications that have been made to any judge under this title 
        involving any of the persons, premises, or property specified 
        in the application, and the action taken on each previous 
        applications;
            ``(8) a statement of the facts concerning any search 
        described in section 406(b), below, which involves any of the 
        persons, premises, or property specified in the application; 
        and
            ``(9) a statement that the purpose of the physical search 
        is to obtain foreign intelligence information.
    ``(b) The judge may require the applicant to furnish such other 
information as may be necessary to make the determinations required by 
section 403.

                         ``issuance of an order

    ``Sec. 403. (a) Upon an application made pursuant to section 402, 
the judge shall enter an ex parte order as requested or as modified 
approving the physical search if the judge finds that--
            ``(1) the President has authorized the Attorney General to 
        approve applications for physical searches for foreign 
        intelligence purposes;
            ``(2) the application has been made by a Federal officer 
        and approved by the Attorney General;
            ``(3) on the basis of the facts submitted by the applicant 
        there is probable cause to believe that--
                    ``(A) the target of the physical search is a 
                foreign power or an agent of a foreign power: Provided, 
                That no United States person may be considered an agent 
                of a foreign power solely upon the basis of activities 
                protected by the first amendment to the Constitution of 
                the United States;
                    ``(B) the premises or property to be searched are 
                owned, used, possessed by, or is in transit to or from 
                an agent of a foreign power or a foreign power; and
                    ``(C) physical search of such premises or property 
                can reasonably be expected to yield foreign 
                intelligence information which cannot reasonably be 
                obtained by normal investigative means; and
            ``(4) the proposed minimization procedures meet the 
        definition of minimization contained in this title; and
            ``(5) the application which has been filed contains all 
        statements required by section 402.
    ``(b) An order approving a physical search under this section 
shall--
            ``(1) specify--
                    ``(A) the Federal officer or officers authorized to 
                conduct the physical search and the identity, if known, 
                or a description of the target of the physical search;
                    ``(B) the premises or property to be searched and 
                the information, material, or property to be seized, 
                altered, or reproduced;
                    ``(C) the type of foreign intelligence information 
                sought to be acquired; and
                    ``(D) a statement of the manner in which the 
                physical search is to be conducted and, whenever more 
                than one physical search is authorized under the order, 
                the authorized scope of each search and what 
                minimization procedures shall apply to the information 
                acquired by each search;
            ``(2) direct--
                    ``(A) that the minimization procedures be followed;
                    ``(B) that, upon the request of the applicant, a 
                specified landlord, custodian, or other specified 
                person furnish the applicant forthwith all information, 
                facilities, or assistance necessary to accomplish the 
                physical search in such a manner as will protect its 
                secrecy and produce a minimum of interference with the 
                activities of the landlord, custodian, or other person; 
                and that such landlord, custodian or other person 
                maintain under security procedures approved by the 
                Attorney General and the Director of Central 
                Intelligence any records concerning the search or the 
                aid furnished that such person wishes to retain;
                    ``(C) that the physical search be undertaken within 
                30 days of the date of the order, or, if the physical 
                search is of the property, information or material of a 
                foreign power as defined in section 101(a)(1), (2), or 
                (3) of this Act, that such search be undertaken within 
                one year of the order; and
                    ``(D) that the federal officer conducting the 
                physical search promptly report to the court the 
                circumstances and results of the physical search.
    ``(c) At any time after a physical search has been carried out, the 
judge to whom the return has been made may assess compliance with the 
minimization procedures by reviewing the circumstances under which 
information concerning United States persons was acquired, retained, or 
disseminated.
    ``(d) Application made and orders granted under this title shall be 
retained for a period of at least ten years from the date of the 
application.
    ``(e) Not more than 60 days after a physical search of the 
residence of a United States person authorized by this title, or such a 
search in the circumstances described in section 406(b), has been 
conducted, the Attorney General shall provide the United States person 
with an inventory which shall include--
            ``(1) existence or not of a court order authorizing the 
        physical search and the date of the order;
            ``(2) the date of the physical search and an identification 
        of the premises or property searched; and
            ``(3) a list of any information, material, or property 
        seized, altered, or reproduced.
    ``(f) On an ex parte showing of good cause by the Attorney General 
to a judge of the Foreign Intelligence Surveillance Court the provision 
of the inventory required by subsection (e) may be postponed for a 
period not to exceed 90 days. At the end of such period the provision 
of the inventory may, upon a similar showing, be postponed 
indefinitely. The denial of a request for such postponements may be 
reviewed as provided in section 401.

                          ``use of information

    ``Sec. 404. (a) Information acquired from a physical search 
conducted pursuant to this title concerning any United States person 
may be used and disclosed by Federal officers and employees without the 
consent of the United States person only in accordance with the 
minimization procedures required by this title. No information acquired 
from a physical search pursuant to this title may be used or disclosed 
by Federal officers or employees except for lawful purposes.
    ``(b) No information acquired pursuant to this title shall be 
disclosed for law enforcement purposes unless such disclosure is 
accompanied by a statement that such information, or any information 
derived therefrom, may only be used in a criminal proceeding with the 
advance authorization of the Attorney General.
    ``(c) Whenever the United States intends to enter into evidence or 
otherwise use or disclose in any trial, hearing, or other proceeding in 
or before any court, department, officer, agency, regulatory body, or 
other authority of the United States, against an aggrieved person, any 
information obtained or derived from a physical search of the premises 
or property of that aggrieved person pursuant to the authority of this 
title, the United States shall, prior to the trial, hearing, or the 
other proceeding or at a reasonable time prior to an effort to so 
disclose or so use that information or submit it in evidence, notify 
the aggrieved person and the court or other authority in which the 
information is to be disclosed or used that the United States intends 
to so disclose or so use such information.
    ``(d) Whenever any State or political subdivision thereof intends 
to enter into evidence or otherwise use of disclose in any trial, 
hearing, or other proceeding in or before any court, department, 
officer, agency, regulatory body, or other authority of a State or a 
political subdivision thereof against an aggrieved person any 
information obtained or derived from a physical search of the premises 
or property of that aggrieved person pursuant to the authority of this 
title, the State or political subdivision thereof shall notify the 
aggrieved person, the court or other authority in which the information 
is to be disclosed or used, and the Attorney General that the State or 
political subdivision thereof intends to so disclose or so use such 
information.
    ``(e) Any person against whom evidence obtained or derived from a 
physical search to which he is an aggrieved person is to be, or has 
been, introduced or otherwise used or disclosed in any trial, hearing, 
or other proceeding in or before any court, department, officer, 
agency, regulatory body, or other authority of the United States, a 
State, or a political subdivision thereof, may move to suppress the 
evidence obtained or derived from such search on the grounds that--
            ``(1) the information was unlawfully acquired; or
            ``(2) the physical search was not made in conformity with 
        an order of authorization or approval.
Such a motion shall be made before the trial, hearing, or other 
proceeding unless there was no opportunity to make such a motion or the 
person was not aware of the grounds of the motion.
    ``(f) Whenever a court of other authority is notified pursuant to 
subsection (c) or (d), or whenever a motion is made pursuant to 
subsection (e), or whenever any motion or request is made by an 
aggrieved person pursuant to any other statute or rule of the United 
States or any State before any court or other authority of the United 
States or any State to discover or obtain applications or orders or 
other materials relating to a physical search authorized by this title 
or to discover, obtain, or suppress evidence or information obtained or 
derived from a physical search authorized by this title, the United 
States district court or, where the motion is made before another 
authority, the United States district court in the same district as the 
authority shall, notwithstanding any other law, if the Attorney General 
files an affidavit under oath that disclosure or an adversary hearing 
would harm the national security of the United States, review in camera 
and ex parte the application, order, and such other materials relating 
to the physical search as may be necessary to determine whether the 
physical search of the aggrieved person was lawfully authorized and 
conducted. In making this determination, the court may disclose to the 
aggrieved person, under appropriate security procedures and protective 
orders, portions of the application, order, or other materials relating 
to the physical search only where such disclosure is necessary to make 
an accurate determination of the legality of the physical search.
    ``(g) If the United States district court pursuant to subsection 
(f) determines that the physical search was not lawfully authorized or 
conducted, it shall, in accordance with the requirements of law, 
suppress the evidence which was unlawfully obtained or derived from the 
physical search of the aggrieved person or otherwise grant the motion 
of the aggrieved person. If the court determines that the physical 
search was lawfully authorized or conducted, it shall deny the motion 
of the aggrieved person except to the extent that due process requires 
discovery or disclosure.
    ``(h) Orders granting motions or requests under subsection (g), 
decisions under this section that a physical search was not lawfully 
authorized or conducted, and orders of the United States district court 
requiring review or granting disclosure of applications, orders or 
other materials relating to the physical search shall be final orders 
and binding upon all courts of the United States and the several States 
except a United States court of appeals and the Supreme Court.
    ``(i) The provisions of this section regarding the use or 
disclosure of information obtained or derived from a physical search 
shall apply to information obtained or derived from a search conducted 
without a court order to obtain foreign intelligence information which 
is not a physical search as defined in this title solely because the 
existence of exigent circumstances would not require a warrant for law 
enforcement purposes.

                              ``oversight

    ``Sec. 405. (a) On a semiannual basis the Attorney General shall 
fully inform the House Permanent Select Committee on Intelligence and 
the Senate Select Committee on Intelligence concerning all physical 
searches conducted pursuant to this title, and all other searches, 
except those reported under section 108 of this Act, conducted in the 
United States for foreign intelligence purposes. On an annual basis the 
Attorney General shall also provide to those committees a report 
setting forth with respect to the preceding calendar year--
            ``(1) the total number of applications made for orders 
        approving physical searches under this title; and
            ``(2) the total number of such orders either granted, 
        modified, or denied.
    ``(b) Whenever a search is conducted without a court order to 
obtain foreign intelligence information which is not a physical search 
as defined in this title solely because the existence of exigent 
circumstances would not require a warrant for law enforcement purposes, 
a full report of such search, including a description of the exigent 
circumstances, shall be maintained by the Attorney General. Each such 
report shall be transmitted to the Foreign Intelligence Surveillance 
Court promptly after the search is conducted.

                 ``authority for intelligence searches

    ``Sec. 406. (a) The procedures contained in this title shall be the 
exclusive means by which a physical search, as defined in this title, 
may be conducted in the United States for foreign intelligence 
purposes, and an order issued under this title authorizing a physical 
search shall constitute a search warrant authorized by law for purposes 
of any other law.
    ``(b) Searches conducted in the United States to collect foreign 
intelligence information, other than physical searches as defined in 
this title and electronic surveillance as defined in this Act, and 
physical searches conducted in the United States without a court order 
to collect foreign intelligence information may be conducted only 
pursuant to regulations issued by the Attorney General. Such 
regulations, and any changes thereto, shall be provided to the Select 
Committee on Intelligence of the Senate and the Permanent Select 
Committee on Intelligence of the House of Representatives at least 14 
days prior to the taking effect. Any regulations issued by the Attorney 
General regarding such searches which were in effect as of June 1, 
1990, shall be deemed to be regulations required by this subsection.

                              ``penalties

    ``Sec. 407. (a) Offense.--A person is guilty of an offense if he 
intentionally--
            ``(1) under color of law for the purpose of obtaining 
        foreign intelligence information, engages in physical search 
        within the United States except as authorized by statute; or
            ``(2) discloses or uses information obtained under color of 
        law by physical search within the United States, knowing or 
        having reason to know that the information was obtained through 
        physical search not authorized by statute, for the purpose of 
        obtaining intelligence information.
    ``(b) Defense.--It is a defense to a prosecution under subsection 
(a) that the defendant was a law enforcement or investigative officer 
engaged in the course of his official duties and the physical search 
was authorized by and conducted pursuant to a search warrant or court 
order of a court of competent jurisdiction.
    ``(c) Penalty.--An offense described in this section is punishable 
by a fine of not more than $10,000 or imprisonment for not more than 
five years, or both.
    ``(d) Jurisdiction.--There is Federal jurisdiction over an offense 
under this section if the person committing the offense was an officer 
or employee of the United States at the time the offense was committed.

                           ``civil liability

    ``Sec. 408. Civil Action.--An aggrieved person, other than a 
foreign power or an agent of a foreign power, as defined in section 101 
(a) or (b)(1)(A), respectively, of this Act, whose premises, property, 
information, or material has been subjected to a physical search within 
the United States or about whom information obtained by such a physical 
search has been disclosed or used in violation of section 407 shall 
have a cause of action against any person who committed such violation 
and shall be entitled to recover--
            ``(a) actual damages;
            ``(b) punitive damages; and
            ``(c) reasonable attorney's fees and other investigative 
        and litigation costs reasonably incurred.

                             ``definitions

    ``Sec. 409. As used in this title:
            ``(a) The terms `foreign power,' `agent of a foreign 
        power,' `international terrorism,' `sabotage,' `foreign 
        intelligence information,' `Attorney General,' `United States 
        person,' `United States',' `person,' and `State' shall have the 
        same meaning as in Section 101 of this Act.
            ``(b) `Physical search' means any physical intrusion into 
        premises or property (including examination of the interior of 
        property by technical means) or any seizure, reproduction or 
        alteration of information, material or property, under 
        circumstances in which a person has a reasonable expectation of 
        privacy and a warrant would be required for law enforcement 
        purposes, but does not include `electronic surveillance' as 
        defined in subsection 101(f) of this Act.
            ``(c) `Minimization procedures' with respect to physical 
        search, means--
                    ``(1) specific procedures, which shall be adopted 
                by the Attorney General, that are reasonably designed 
                in light of the purposes and technique of the 
                particular physical search, to minimize the acquisition 
                and retention, and prohibit the dissemination, of non-
                publicly available information concerning unconsenting 
                United States persons consistent with the need of the 
                United States persons consistent with the need of the 
                United States to obtain, produce, and disseminate 
                foreign intelligence information;
                    ``(2) procedures that require that non-publicly 
                available information, which is not foreign 
                intelligence information, as defined in subsection 
                101(e)(1) of this Act, shall not be disseminated in a 
                manner that identifies any United States person, 
                without such person's consent, unless such person's 
                identity is necessary to understand such foreign 
                intelligence information or assess its importance; and
                    ``(3) notwithstanding paragraphs (1) and (2), 
                procedures that allow for the retention and 
                dissemination of information that is evidence of a 
                crime which has been, is being, or is about to be 
                committed and that is to be retained or disseminated 
                for law enforcement purposes.''
            ``(d) `Aggrieved person' means a person whose premises, 
        property, information, or material is the target of physical 
        search or any other person whose premises, property, 
        information, or material was subject to physical search.
            ``(e) `Foreign Intelligence Surveillance Court' means the 
        court established by section 103(a) of this Act.
            ``(f) `Court of Review' means the court established by 
        section 103(b) of this Act.

                            ``effective date

    ``Sec. 410. The provisions of this title shall become effective 90 
days after the date of enactment of this title, except that any 
physical search approved by the Attorney General to gather foreign 
intelligence information shall not be deemed unlawful for failure to 
follow the procedures of this title, if that search is conducted within 
180 days following the date of enactment of this title pursuant to 
regulations issued by the Attorney General, which are in the possession 
of the Select Committee on Intelligence of the Senate and the Permanent 
Select Committee on Intelligence of the House of Representatives prior 
to the date of enactment.''.

              TITLE XI--LOCAL EMPOWERMENT AND FLEXIBILITY

SEC. 1101. SHORT TITLE.

    This title may be cited as the ``Local Empowerment and Flexibility 
Act of 1994''.

SEC. 1102. FINDINGS.

    The Congress finds that--
            (1) historically, Federal social service programs have 
        addressed the Nation's social problems by providing categorical 
        assistance with detailed requirements relating to the use of 
        funds;
            (2) while the assistance described in paragraph (1) has 
        been directed at critical problems, some program requirements 
        may inadvertently impede the effective delivery of social 
        services;
            (3) the Nation's local governments and private, nonprofit 
        organizations are dealing with increasingly complex social 
        problems which require the delivery of many kinds of social 
        services;
            (4) the Nation's communities are diverse, and different 
        social needs are present in different communities;
            (5) it is more important than ever to provide programs 
        that--
                    (A) promote local delivery of social services to 
                meet the full range of needs of individuals and 
                families;
                    (B) respond flexibly to the diverse needs of the 
                Nation's communities;
                    (C) reduce the barriers between programs that 
                impede local governments' ability to effectively 
                deliver social services; and
                    (D) empower local governments and private, 
                nonprofit organizations to be innovative in creating 
                programs that meet the unique needs of the people in 
                their communities while continuing to address national 
                social service goals; and
            (6) many communities have innovative planning and community 
        involvement strategies for social services, but Federal, State, 
        and local regulations often hamper full implementation of local 
        plans.

SEC. 1103. PURPOSES.

    The purposes of this title are to--
            (1) enable more efficient use of Federal, State, and local 
        resources;
            (2) place less emphasis in Federal social service programs 
        on measuring resources and procedures and more emphasis on 
        achieving Federal, State, and local social services goals;
            (3) enable local governments and private, nonprofit 
        organizations to adapt programs of Federal assistance to the 
        particular needs of low income citizens and the operating 
        practices of recipients, by--
                    (A) drawing upon appropriations available from more 
                than one Federal program; and
                    (B) integrating programs and program funds across 
                existing Federal assistance categories; and
            (4) enable local governments and private, nonprofit 
        organizations to work together and build stronger cooperative 
        partnerships to address critical social service problems.

SEC. 1104. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``approved local flexibility plan'' means a 
        local flexibility plan that combines funds from Federal, State, 
        local government or private sources to address the social 
        service needs of a community (or any part of such a plan) that 
        is approved by the Community Enterprise Board under section 
        1106;
            (2) the term ``community advisory committee'' means such a 
        committee established by a local government under section 1110;
            (3) the term ``Community Enterprise Board'' means the board 
        established by the President that is composed of the--
                    (A) Vice President;
                    (B) Assistant to the President for Domestic Policy;
                    (C) Assistant to the President for Economic Policy;
                    (D) Secretary of the Treasury;
                    (E) Attorney General;
                    (F) Secretary of the Interior;
                    (G) Secretary of Agriculture;
                    (H) Secretary of Commerce;
                    (I) Secretary of Labor;
                    (J) Secretary of Health and Human Services;
                    (K) Secretary of Housing and Urban Development;
                    (L) Secretary of Transportation;
                    (M) Secretary of Education;
                    (N) Administrator of the Environmental Protection 
                Agency;
                    (O) Director of National Drug Control Policy;
                    (P) Administrator of the Small Business 
                Administration;
                    (Q) Director of the Office of Management and 
                Budget; and
                    (R) Chair of the Council of Economic Advisers.
            (4) the term ``covered Federal assistance program'' means 
        an eligible Federal assistance program that is included in a 
        local flexibility plan of a local government;
            (5) the term ``eligible Federal assistance program''--
                    (A) means a Federal program under which assistance 
                is available, directly or indirectly, to a local 
                government or a qualified organization to carry out a 
                program for--
                            (i) economic development;
                            (ii) employment training;
                            (iii) health;
                            (iv) housing;
                            (v) nutrition;
                            (vi) other social services; or
                            (vii) rural development; and
                    (B) does not include a Federal program under which 
                assistance is provided by the Federal Government 
                directly to a beneficiary of that assistance or to a 
                State as a direct payment to an individual;
            (6) the term ``eligible local government'' means a local 
        government that is eligible to receive assistance under 1 or 
        more covered Federal programs;
            (7) the term ``local flexibility plan'' means a 
        comprehensive plan for the integration and administration by a 
        local government of assistance provided by the Federal 
        Government under 2 or more eligible Federal assistance 
        programs;
            (8) the term ``local government'' means a subdivision of a 
        State that is a unit of general local government (as defined 
        under section 6501 of title 31, United States Code);
            (9) the term ``low income'' means having an income that is 
        not greater than 200 percent of the Federal poverty income 
        level;
            (10) the term ``priority funding'' means giving higher 
        priority (including by the assignment of extra points, if 
        applicable) to applications for Federal assistance submitted by 
        a local government having an approved local flexibility 
        program, by--
                    (A) a person located in the jurisdiction of such a 
                government; or
                    (B) a qualified organization eligible for 
                assistance under a covered Federal assistance program 
                included in such a plan;
            (11) the term ``qualified organization'' means a private, 
        nonprofit organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 that is exempt from taxation 
        under section 501(a) of the Internal Revenue Code of 1986; and
            (12) the term ``State'' means the 50 States, the District 
        of Columbia, Puerto Rico, American Samoa, Guam, and the Virgin 
        Islands.

SEC. 1105. DEMONSTRATION PROGRAM.

    The Community Enterprise Board shall--
            (1) establish and administer a local flexibility 
        demonstration program by approving local flexibility plans in 
        accordance with the provisions of this title;
            (2) no later than 180 days after the date of the enactment 
        of this Act, select no more than 30 local governments from no 
        more than 6 States to participate in such program, of which--
                    (A) 3 States shall each have a population of 
                3,500,000 or more as determined under the most recent 
                decennial census; and
                    (B) 3 States shall each have a population of 
                3,500,000 or less as determined under the most recent 
                decennial census.

SEC. 1106. PROVISION OF FEDERAL ASSISTANCE IN ACCORDANCE WITH APPROVED 
              LOCAL FLEXIBILITY PLAN.

    (a) Payments to Local Governments.--Notwithstanding any other 
provision of law, amounts available to a local government or a 
qualified organization under a covered Federal assistance program 
included in an approved local flexibility plan shall be provided to and 
used by the local government or organization in accordance with the 
approved local flexibility plan.
    (b) Eligibility for Benefits.--An individual or family that is 
eligible for benefits or services under a covered Federal assistance 
program included in an approved local flexibility plan may receive 
those benefits only in accordance with the approved local flexibility 
plan.

SEC. 1107. APPLICATION FOR APPROVAL OF LOCAL FLEXIBILITY PLAN.

    (a) In General.--A local government may submit to the Community 
Enterprise Board in accordance with this section an application for 
approval of a local flexibility plan.
    (b) Contents of Application.--An application submitted under this 
section shall include--
            (1) a proposed local flexibility plan that complies with 
        subsection (c);
            (2) certification by the chief executive of the local 
        government, and such additional assurances as may be required 
        by the Community Enterprise Board, that--
                    (A) the local government has the ability and 
                authority to implement the proposed plan, directly or 
                through contractual or other arrangements, throughout 
                the geographic area in which the proposed plan is 
                intended to apply;
                    (B) amounts are available from non-Federal sources 
                to pay the non-Federal share of all covered Federal 
                assistance programs included in the proposed plan; and
                    (C) low income individuals and families that reside 
                in that geographic area participated in the development 
                of the proposed plan;
            (3) any comments on the proposed plan submitted under 
        subsection (d) by the Governor of the State in which the local 
        government is located;
            (4) public comments on the plan including the transcript of 
        at least 1 public hearing and comments of the appropriate 
        community advisory committee established under section 1110; 
        and
            (5) other relevant information the Community Enterprise 
        Board may require to approve the proposed plan.
    (c) Contents of Plan.--A local flexibility plan submitted by a 
local government under this section shall include--
            (1) the geographic area to which the plan applies and the 
        rationale for defining the area;
            (2) the particular groups of individuals, by age, service 
        needs, economic circumstances, or other defining factors, who 
        shall receive services and benefits under the plan;
            (3)(A) specific goals and measurable performance criteria, 
        a description of how the plan is expected to attain those goals 
        and criteria;
            (B) a description of how performance shall be measured; and
            (C) a system for the comprehensive evaluation of the impact 
        of the plan on participants, the community, and program costs;
            (4) the eligible Federal assistance programs to be included 
        in the plan as covered Federal assistance programs and the 
        specific benefits that shall be provided under the plan under 
        such programs, including--
                    (A) criteria for determining eligibility for 
                benefits under the plan;
                    (B) the services available;
                    (C) the amounts and form (such as cash, in-kind 
                contributions, or financial instruments) of nonservice 
                benefits; and
                    (D) any other descriptive information the Community 
                Enterprise Board considers necessary to approve the 
                plan;
            (5) except for the requirements under section 1109(b)(3), 
        any Federal statutory or regulatory requirement applicable 
        under a covered Federal assistance program included in the 
        plan, the waiver of which is necessary to implement the plan;
            (6) fiscal control and related accountability procedures 
        applicable under the plan;
            (7) a description of the sources of all non-Federal funds 
        that are required to carry out covered Federal assistance 
        programs included in the plan;
            (8) written consent from each qualified organization for 
        which consent is required under section 1107(b)(2); and
            (9) other relevant information the Community Enterprise 
        Board may require to approve the plan.
    (d) Procedure for Applying.--(1) To apply for approval of a local 
flexibility plan, a local government shall submit an application in 
accordance with this section to the Governor of the State in which the 
local government is located.
    (2) A Governor who receives an application from a local government 
under paragraph (1) may, by no later than 30 days after the date of 
that receipt--
            (A) prepare comments on the proposed local flexibility plan 
        included in the application;
            (B) describe any State laws which are necessary to waive 
        for successful implementation of a local plan; and
            (C) submit the application and comments to the Community 
        Enterprise Board.
    (3) If a Governor fails to act within 30 days after receiving an 
application under paragraph (2), the applicable local government may 
submit the application to the Community Enterprise Board.

SEC. 1108. REVIEW AND APPROVAL OF LOCAL FLEXIBILITY PLANS.

    (a) Review of Applications.--Upon receipt of an application for 
approval of a local flexibility plan under this title, the Community 
Enterprise Board shall--
            (1) approve or disapprove all or part of the plan within 45 
        days after receipt of the application;
            (2) notify the applicant in writing of that approval or 
        disapproval by not later than 15 days after the date of that 
        approval or disapproval; and
            (3) in the case of any disapproval of a plan, include a 
        written justification of the reasons for disapproval in the 
        notice of disapproval sent to the applicant.
    (b) Approval.--(1) The Community Enterprise Board may approve a 
local flexibility plan for which an application is submitted under this 
title, or any part of such a plan, if a majority of members of the 
Board determines that--
            (A) the plan or part shall improve the effectiveness and 
        efficiency of providing benefits under covered Federal programs 
        included in the plan by reducing administrative inflexibility, 
        duplication, and unnecessary expenditures;
            (B) the applicant local government has adequately 
        considered, and the plan or part of the plan appropriately 
        addresses, any effect that administration of each covered 
        Federal program under the plan or part of the plan shall have 
        on administration of the other covered Federal programs under 
        that plan or part of the plan;
            (C) the applicant local government has or is developing 
        data bases, planning, and evaluation processes that are 
        adequate for implementing the plan or part of the plan;
            (D) the plan shall more effectively achieve Federal 
        assistance goals at the local level and shall better meet the 
        needs of local citizens;
            (E) implementation of the plan or part of the plan shall 
        adequately achieve the purposes of this title and of each 
        covered Federal assistance program under the plan or part of 
        the plan;
            (F) the plan and the application for approval of the plan 
        comply with the requirements of this title;
            (G) the plan or part of the plan is adequate to ensure that 
        individuals and families that receive benefits under covered 
        Federal assistance programs included in the plan or part shall 
        continue to receive benefits that meet the needs intended to be 
        met under the program;
            (H) the qualitative level of those benefits shall not be 
        reduced for any individual or family; and
            (I) the local government has--
                    (i) waived the corresponding local laws necessary 
                for implementation of the plan; and
                    (ii) sought any necessary waivers from the State.
    (2) The Community Enterprise Board may not approve any part of a 
local flexibility plan if--
            (A) implementation of that part would result in any 
        increase in the total amount of obligations or outlays of 
        discretionary appropriations or direct spending under covered 
        Federal assistance programs included in that part, over the 
        amounts of such obligations and outlays that would occur under 
        those programs without implementation of the part; or
            (B) in the case of a plan or part that applies to 
        assistance to a qualified organization under an eligible 
        Federal assistance program, the qualified organization does not 
        consent in writing to the receipt of that assistance in 
        accordance with the plan.
    (3) The Community Enterprise Board shall disapprove a part of a 
local flexibility plan if a majority of the Board disapproves that part 
of the plan based on a failure of the part to comply with paragraph 
(1).
    (4) In approving any part of a local flexibility plan, the 
Community Enterprise Board shall specify the period during which the 
part is effective. An approved local flexibility plan shall not be 
effective after the date of the termination of effectiveness of this 
title under section 1113(a).
    (5) Disapproval by the Community Enterprise Board of any part of a 
local flexibility plan submitted by a local government under this title 
shall not affect the eligibility of a local government, a qualified 
organization, or any individual for benefits under any Federal program.
    (c) Memoranda of Understanding.--(1) The Community Enterprise Board 
may not approve a part of a local flexibility plan unless each local 
government and each qualified organization that would receive 
assistance under the plan enters into a memorandum of understanding 
under this subsection with the Community Enterprise Board.
    (2) A memorandum of understanding under this subsection shall 
specify all understandings that have been reached by the Community 
Enterprise Board, the local government, and each qualified organization 
that is subject to a local flexibility plan, regarding the approval and 
implementation of all parts of a local flexibility plan that are the 
subject of the memorandum, including understandings with respect to--
            (A) all requirements under covered Federal assistance 
        programs that are to be waived by the Community Enterprise 
        Board under section 1109(b);
            (B)(i) the total amount of Federal funds that shall be 
        provided as benefits under or used to administer covered 
        Federal assistance programs included in those parts; or
            (ii) a mechanism for determining that amount, including 
        specification of the total amount of Federal funds that shall 
        be provided or used under each covered Federal assistance 
        program included in those parts;
            (C) the sources of all non-Federal funds that shall be 
        provided as benefits under or used to administer those parts;
            (D) measurable performance criteria that shall be used 
        during the term of those parts to determine the extent to which 
        the goals and performance levels of the parts are achieved; and
            (E) the data to be collected to make that determination.
    (d) Limitation on Confidentiality Requirements.--The Community 
Enterprise Board may not, as a condition of approval of any part of a 
local flexibility plan or with respect to the implementation of any 
part of an approved local flexibility plan, establish any 
confidentiality requirement that would--
            (1) impede the exchange of information needed for the 
        design or provision of benefits under the parts; or
            (2) conflict with law.

SEC. 1109. IMPLEMENTATION OF APPROVED LOCAL FLEXIBILITY PLANS; WAIVER 
              OF REQUIREMENTS.

    (a) Payments and Administration in Accordance With Plan.--
Notwithstanding any other law, any benefit that is provided under a 
covered Federal assistance program included in an approved local 
flexibility plan shall be paid and administered in the manner specified 
in the approved local flexibility plan.
    (b) Waiver of Requirements.--(1) Notwithstanding any other law and 
subject to paragraphs (2) and (3), the Community Enterprise Board may 
waive any requirement applicable under Federal law to the 
administration of, or provision of benefits under, any covered Federal 
assistance program included in an approved local flexibility plan, if 
that waiver is--
            (A) reasonably necessary for the implementation of the 
        plan; and
            (B) approved by a majority of members of the Community 
        Enterprise Board.
    (2) The Community Enterprise Board may not waive a requirement 
under this subsection unless the Board finds that waiver of the 
requirement shall not result in a qualitative reduction in services or 
benefits for any individual or family that is eligible for benefits 
under a covered Federal assistance program.
    (3) The Community Enterprise Board may not waive any requirement 
under this subsection--
            (A) that enforces any constitutional or statutory right of 
        an individual, including any right under--
                    (i) title VI of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d et seq.);
                    (ii) section 504 of the Rehabilitation Act of 1973 
                (29 U.S.C. 701 et seq.);
                    (iii) title IX of the Education Amendments of 1972 
                (86 Stat. 373 et seq.);
                    (iv) the Age Discrimination Act of 1975 (42 U.S.C. 
                6101 et seq.); or
                    (v) the Americans with Disabilities Act of 1990;
            (B) for payment of a non-Federal share of funding of an 
        activity under a covered Federal assistance program; or
            (C) for grants received on a maintenance of effort basis.
    (c) Special Assistance.--To the extent permitted by law, the head 
of each Federal agency shall seek to provide special assistance to a 
local government or qualified organization to support implementation of 
an approved local flexibility plan, including expedited processing, 
priority funding, and technical assistance.
    (d) Evaluation and Termination.--(1) A local government, in 
accordance with regulations issued by the Community Enterprise Board, 
shall--
            (A) submit such reports on and cooperate in such audits of 
        the implementation of its approved local flexibility plan; and
            (B) periodically evaluate the effect implementation of the 
        plan has had on--
                    (i) individuals who receive benefits under the 
                plan;
                    (ii) communities in which those individuals live; 
                and
                    (iii) costs of administering covered Federal 
                assistance programs included in the plan.
    (2) No later than 90 days after the end of the 1-year period 
beginning on the date of the approval by the Community Enterprise Board 
of an approved local flexibility plan of a local government, and 
annually thereafter, the local government shall submit to the Community 
Enterprise Board a report on the principal activities and achievements 
under the plan during the period covered by the report, comparing those 
achievements to the goals and performance criteria included in the plan 
under section 1107(c)(3).
    (3)(A) If the Community Enterprise Board, after consultation with 
the head of each Federal agency responsible for administering a covered 
Federal assistance program included in an approved local flexibility 
plan of a local government, determines--
            (i) that the goals and performance criteria included in the 
        plan under section 1107(c)(3) have not been met; and
            (ii) after considering any experiences gained in 
        implementation of the plan, that those goals and criteria are 
        sound;
the Community Enterprise Board may terminate the effectiveness of the 
plan.
    (B) In terminating the effectiveness of an approved local 
flexibility plan under this paragraph, the Community Enterprise Board 
shall allow a reasonable period of time for appropriate Federal, State, 
and local agencies and qualified organizations to resume administration 
of Federal programs that are covered Federal assistance programs 
included in the plan.
    (e) Final Report; Extension of Plans.--(1) No later than 45 days 
after the end of the effective period of an approved local flexibility 
plan of a local government, or at any time that the local government 
determines that the plan has demonstrated its worth, the local 
government shall submit to the Community Enterprise Board a final 
report on its implementation of the plan, including a full evaluation 
of the successes and shortcomings of the plan and the effects of that 
implementation on individuals who receive benefits under those 
programs.
    (2) The Community Enterprise Board may extend the effective period 
of an approved local flexibility plan for such period as may be 
appropriate, based on the report of a local government under paragraph 
(1).

SEC. 1110. COMMUNITY ADVISORY COMMITTEES.

    (a) Establishment.--A local government that applies for approval of 
a local flexibility plan under this title shall establish a community 
advisory committee in accordance with this section.
    (b) Functions.--A community advisory committee shall advise a local 
government in the development and implementation of its local 
flexibility plan, including advice with respect to--
            (1) conducting public hearings;
            (2) representing the interest of low income individuals and 
        families; and
            (3) reviewing and commenting on all community policies, 
        programs, and actions under the plan which affect low income 
        individuals and families, with the purpose of ensuring maximum 
        coordination and responsiveness of the plan in providing 
        benefits under the plan to those individuals and families.
    (c) Membership.--The membership of a community advisory committee 
shall--
            (1) consist of--
                    (A) low income individuals, who shall--
                            (i) comprise at least one-third of the 
                        membership; and
                            (ii) include minority individuals who are 
                        participants or who qualify to participate in 
                        eligible Federal assistance programs;
                    (B) representatives of low income individuals and 
                families;
                    (C) persons with leadership experience in the 
                private and voluntary sectors;
                    (D) local elected officials;
                    (E) representatives of participating qualified 
                organizations; and
                    (F) the general public; and
            (2) include individuals and representatives of community 
        organizations who shall help to enhance the leadership role of 
        the local government in developing a local flexibility plan.
    (d) Opportunity for Review and Comment by Committee.--Before 
submitting an application for approval of a final proposed local 
flexibility plan, a local government shall submit the final proposed 
plan for review and comment by a community advisory committee 
established by the local government.
    (e) Committee Review of Reports.--Before submitting annual or final 
reports on an approved assistance plan, a local government or private 
nonprofit organization shall submit the report for review and comment 
to the community advisory committee.

SEC. 1111. TECHNICAL AND OTHER ASSISTANCE.

    (a) Technical Assistance.--(1) The Community Enterprise Board may 
provide, or direct that the head of a Federal agency provide, technical 
assistance to a local government or qualified organization in 
developing information necessary for the design or implementation of a 
local flexibility plan.
    (2) Assistance may be provided under this subsection if a local 
government makes a request that includes, in accordance with 
requirements established by the Community Enterprise Board--
            (A) a description of the local flexibility plan the local 
        government proposes to develop;
            (B) a description of the groups of individuals to whom 
        benefits shall be provided under covered Federal assistance 
        programs included in the plan; and
            (C) such assurances as the Community Enterprise Board may 
        require that--
                    (i) in the development of the application to be 
                submitted under this title for approval of the plan, 
                the local government shall provide adequate 
                opportunities to participate to--
                            (I) low income individuals and families 
                        that shall receive benefits under covered 
                        Federal assistance programs included in the 
                        plan; and
                            (II) governmental agencies that administer 
                        those programs; and
                    (ii) the plan shall be developed after considering 
                fully--
                            (I) needs expressed by those individuals 
                        and families;
                            (II) community priorities; and
                            (III) available governmental resources in 
                        the geographic area to which the plan shall 
                        apply.
    (b) Details to Board.--At the request of the Chairman of the 
Community Enterprise Board and with the approval of an agency head who 
is a member of the Board, agency staff may be detailed to the Community 
Enterprise Board on a nonreimbursable basis.

SEC. 1112. COMMUNITY ENTERPRISE BOARD.

    (a) Functions.--The Community Enterprise Board shall--
            (1) receive, review, and approve or disapprove local 
        flexibility plans for which approval is sought under this 
        title;
            (2) upon request from an applicant for such approval, 
        direct the head of an agency that administers a covered Federal 
        assistance program under which substantial Federal assistance 
        would be provided under the plan to provide technical 
        assistance to the applicant;
            (3) monitor the progress of development and implementation 
        of local flexibility plans;
            (4) perform such other functions as are assigned to the 
        Community Enterprise Board by this title; and
            (5) issue regulations to implement this title within 180 
        days after the date of its enactment.
    (b) Reports.--No less than 18 months after the date of the 
enactment of this Act, and annually thereafter, the Community 
Enterprise Board shall submit a report on the 5 Federal regulations 
that are most frequently waived by the Community Enterprise Board for 
local governments with approved local flexibility plans to the 
President and the Congress. The President shall review the report and 
determine whether to amend or terminate such Federal regulations.

SEC. 1113. TERMINATION AND REPEAL; REPORT.

    (a) Termination and Repeal.--This title is repealed on the date 
that is 5 years after the date of the enactment of this Act.
    (b) Report.--No later than 4 years after the date of the enactment 
of this Act, the Comptroller General of the United States shall submit 
to the Congress, a report that--
            (1) describes the extent to which local governments have 
        established and implemented approved local flexibility plans;
            (2) evaluates the effectiveness of covered Federal 
        assistance programs included in approved local flexibility 
        plans; and
            (3) includes recommendations with respect to continuing 
        local flexibility.

                          TITLE XII--HERO ACT

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Heroic Efforts to Rescue Others 
Act'' (HERO Act).

SEC. 1202. FINDINGS.

    Congress finds that--
            (1) existing Occupational Safety and Health Administration 
        regulations require the issuance of a citation to an employer 
        in a circumstance in which an employee of such employer has 
        voluntarily acted in a heroic manner to rescue individuals from 
        imminent harm during work hours;
            (2) application of such regulations to employers in such 
        circumstance causes hardships to those employers who are 
        responsible for employees who perform heroic acts to save 
        individuals from imminent harm;
            (3) strict application of such regulations in such 
        circumstance penalizes employers as a result of the time lost 
        and legal fees incurred to defend against such citations; and
            (4) in order to save employers the cost of unnecessary 
        enforcement an exemption from the issuance of a citation to an 
        employer under certain situations related to such circumstance 
        is appropriate.

SEC. 1203. CITATIONS.

    Section 9 of the Occupational Safety and Health Act (29 U.S.C. 658) 
is amended by adding at the end the following new subsection:
    ``(d)(1) No citation may be issued under this section for a rescue 
activity by an employer's employee of an individual in imminent harm 
unless--
            ``(A)(i) such employee is designated or assigned by the 
        employee's employer with responsibility to perform or assist in 
        rescue operations; and
            ``(ii) the employer fails to provide protection of the 
        safety and health of such employee, including failing to 
        provide appropriate training and rescue equipment;
            ``(B)(i) such employee is directed by the employee's 
        employer to perform rescue activities in the course of carrying 
        out the employee's job duties; and
            ``(ii) the employer fails to provide protection of the 
        safety and health of such employee, including failing to 
        provide appropriate training and rescue equipment; or
            ``(C)(i) such employee--
                    ``(I) is employed in a workplace that requires such 
                employee to carry out duties that are directly related 
                to a workplace operation where the likelihood of life-
                threatening accidents is foreseeable, such as a 
                workplace operation where employees are located in 
                confined spaces or trenches, handle hazardous waste, 
                respond to emergency situations, perform excavations, 
                or perform construction over water;
                    ``(II) has not been designated or assigned to 
                perform or assist in rescue operations; and
                    ``(III) voluntarily elects to rescue such an 
                individual; and
            ``(ii) the employer has failed to instruct employees not 
        designated or assigned to perform or assist in rescue 
        operations--
                    ``(I) of the arrangements for rescue;
                    ``(II) not to attempt rescue; and
                    ``(III) of the hazards of attempting rescue without 
                adequate training or equipment.
    ``(2) For purposes of this subsection, the term `imminent harm' 
means the existence of any condition or practice that could reasonably 
be expected to cause death or serious physical harm before such 
condition or practice can be abated.''.

                  TITLE XIII--MISCELLANEOUS PROVISIONS

SEC. 1301. ECONOMIC AND EMPLOYMENT IMPACT ACT.

    (a) Short Title.--This section may be cited as the ``Economic and 
Employment Impact Act''.
    (b) Findings and Purposes.--
            (1) Findings.--The Congress finds that--
                    (A) compliance with Federal regulations is 
                estimated to cost the private sector and State and 
                local governments as much as $850,000,000,000 a year;
                    (B) excessive Federal regulation and mandates 
                increase the cost of doing business and thus hinder 
                economic growth and employment opportunities;
                    (C) State and local governments are forced to 
                absorb the cost of unfunded Federal mandates; and
                    (D) in addition to budget and deficit estimates, 
                Congress and the executive branch decision makers need 
                to be aware of regulatory cost impacts of proposed 
                Federal actions on the private sector and State, local, 
                and tribal governments.
            (2) Purposes.--The purposes of this section are--
                    (A) to ensure that the people of United States are 
                fully apprised of the impact of Federal legislative and 
                regulatory activity on economic growth and employment;
                    (B) to require both the Congress and the executive 
                branch to acknowledge and to take responsibility for 
                the fiscal and economic effects of legislative and 
                regulatory actions and activities;
                    (C) to provide a means to ensure that congressional 
                and executive branch action are focused on enhancing 
                economic growth and providing increased job 
                opportunities for the people of United States; and
                    (D) to protect against congressional or executive 
                branch actions which hinder economic growth or 
                eliminate jobs for the people of United States.
    (c) Economic and Employment Impact Statements for Legislation.--
            (1) Preparation.--The Director of the Congressional Budget 
        Office (referred to as the ``Director'') shall prepare an 
        economic and employment impact statement, as described in 
        paragraph (2), to accompany each bill or joint resolution 
        reported by any committee (except the Committee on 
        Appropriations) of the House of Representatives or the Senate 
        or considered on the floor of either House.
            (2) Contents.--The economic and employment impact statement 
        required by paragraph (1) shall include the following:
                    (A) An estimate of the numbers of individuals and 
                businesses who would be regulated by the bill or joint 
                resolution and a determination of the groups and 
                classes of such individuals and businesses;
                    (B) A determination of the economic impact of such 
                regulation on individuals, consumers, and businesses 
                affected.
                    (C)(i) An estimate of the costs which would be 
                incurred by the private sector in carrying out or 
                complying with such bill or joint resolution in the 
                fiscal year in which it is to become effective, and in 
                each of the 4 fiscal years following such fiscal year, 
                together with the basis for each such estimate.
                    (ii) Estimates required by this subparagraph shall 
                include specific data on costs imposed on groups and 
                classes of individuals and businesses, including small 
                business and consumers, and employment impacts on those 
                individuals and businesses.
                    (D) An estimate of the costs that would be incurred 
                by State and local governments, which shall include--
                            (i) the estimates required by section 403 
                        of the Congressional Budget Act of 1974; and
                            (ii) an evaluation of the extent of the 
                        costs of the Federal mandates arising from such 
                        bill or joint resolution in comparison with 
                        funding assistance provided by the Federal 
                        Government to address the costs of complying 
                        with such mandates.
            (3) Report not available.--If compliance with the 
        requirements of paragraph (1) is impracticable, the Director 
        shall submit a statement setting forth the reasons for 
        noncompliance.
            (4) Statement to accompany committee reports.--The economic 
        and employment impact statement required by this subsection 
        shall accompany each bill or joint resolution reported or 
        otherwise considered on the floor of either House. Such 
        statement shall be printed in the committee report upon timely 
        submission to the committee. If not timely filed or otherwise 
        unavailable for publication in the committee report, the 
        economic and regulatory statement shall be published in the 
        Congressional Record not less than 2 calendar days prior to any 
        floor consideration of a bill or joint resolution subject to 
        the provisions of this subsection by either House.
            (5) Committee statements optional.--Nothing in this 
        subsection shall be construed to modify or otherwise affect the 
        requirements of paragraph 11(b) of rule XXVI of the Standing 
        Rules of the Senate, regarding preparation of an evaluation of 
        regulatory impact.
    (d) Economic and Employment Impact Statement for Executive Branch 
Regulations.--
            (1) Preparation.--Each Federal department or executive 
        branch agency shall prepare an economic and employment impact 
        statement, as described in paragraph (2), to accompany 
        regulatory actions.
            (2) Contents.--The economic and employment impact statement 
        required by paragraph (1) shall include the following:
                    (A) An estimate of the numbers of individuals and 
                businesses who would be regulated by the regulatory 
                action and a determination of the groups and classes of 
                such individuals and businesses.
                    (B) A determination of the economic impact of such 
                regulation on individuals, consumers, and businesses 
                affected.
                    (C)(i) An estimate of the costs which would be 
                incurred by the private sector in carrying out or 
                complying with such regulatory action in the fiscal 
                year in which it is to become effective and in each of 
                the 4 fiscal years following such fiscal year, together 
                with the basis for each such estimate;
                    (ii) The estimate required by this subparagraph 
                shall include specific data on costs on groups and 
                classes of individuals and businesses, including small 
                business and consumers, and employment impacts on those 
                individuals and businesses.
                    (D) An estimate of the costs that would be incurred 
                by State and local governments, which shall include--
                            (i) an estimate of cost which would be 
                        incurred by State and local governments in 
                        carrying out or complying with the regulatory 
                        action in the fiscal year in which it is to 
                        become effective and in each of the 4 fiscal 
                        years following such fiscal year, together with 
                        the basis for such estimate;
                            (ii) a comparison of the estimates of costs 
                        described in clause (i), with any available 
                        estimates of costs made by any Federal or State 
                        agency;
                            (iii) if the agency determines that the 
                        regulatory action is likely to result in annual 
                        cost to State and local governments of 
                        $200,000,000 or more, or is likely to have 
                        exceptional fiscal consequences for a 
                        geographic region or a particular level of 
                        government, a statement by the agency detailing 
                        such results or consequences; and
                            (iv) an evaluation of the extent of the 
                        costs of the Federal mandates arising from the 
                        regulatory action in comparison with funding 
                        assistance provided by the Federal Government 
                        to address the costs of complying with such 
                        mandates.
            (4) Report not available.--If compliance with the 
        requirements of paragraph (1) is impracticable, the agency or 
        department shall submit a statement setting forth the reasons 
        for noncompliance.
            (5) Statement to accompany federal regulatory actions.--The 
        economic and employment impact statement with respect to a 
        regulatory action required by this subsection shall be 
        published in the Federal Register together with the publication 
        of such regulatory action. If the regulatory action is not 
        published in the Federal Register, the economic and employment 
        impact statement shall be made available to the public in a 
        timely manner.
            (6) Definition of ``regulatory action''.--For purposes of 
        this subsection, the term ``regulatory action'' means any 
        substantive action by a Federal agency (required to be or 
        customarily published in the Federal Register) that promulgates 
        or is expected to lead to the promulgation of a final rule or 
        regulation, including notices of inquiry, advance notices of 
        proposed rulemaking, notices of proposed rulemaking, interim 
        final rules, and final rules and regulations.
    (e) Provision for National Security Emergency Waiver.--
            (1) Congressional economic impact statements.--The Congress 
        may waive the requirements of subsection (c) at any time in 
        which a declaration of war is in effect, or in response to a 
        national security emergency at the request of the President.
            (2) Executive regulations economic impact statements.--The 
        President may waive the requirements of subsection (d) at any 
        time in which a declaration of war is in effect, or in response 
        to a national security emergency as determined by the President 
        in consultation with Congress.
    (f) Effective Date.--This section shall take effect 30 days after 
the date enactment of this Act.

SEC. 1302. URBAN UNIVERSITY BUSINESS INITIATIVE GRANTS.

    (a) Urban University Business Initiative Grants.--
            (1) Authorization.--The Secretary of Commerce (hereafter in 
        this section referred to as the ``Secretary'') is authorized to 
        make grants to eligible institutions in accordance with this 
        section.
            (2) Application.--
                    (A) In general.--An eligible institution seeking 
                assistance under this section shall submit to the 
                Secretary an application at such time, in such form, 
                and containing or accompanied by such information and 
                assurances as the Secretary may require by regulation.
                    (B) Contents.--Except as provided in subparagraph 
                (C), each application submitted pursuant to 
                subparagraph (A) shall include--
                            (i) a description of the activities and 
                        services for which assistance is sought;
                            (ii) evidence of coordination with any 
                        small business development centers in existence 
                        in the community; and
                            (iii) documentation of the formation of a 
                        consortium that includes, in addition to 
                        eligible institutions, one or more of the 
                        following entities:
                                    (I) A nonprofit organization.
                                    (II) A business or other employer.
                    (C) Waiver.--The Secretary may waive the 
                requirements of subparagraph (B)(iii) for any applicant 
                who can demonstrate to the satisfaction of the 
                Secretary that the applicant has devised an integrated 
                and coordinated plan that otherwise meets the 
                requirements of this section.
            (3) Selection Procedures.--Not later than 120 days after 
        the date of enactment of this section, the Secretary shall, by 
        regulation, develop a formal procedure for the submission of 
        applications under this section and shall publish in the 
        Federal Register an announcement of that procedure and the 
        availability of funds under this section.
    (b) Authorized Activities.--
            (1) In general.--Funds provided under this section shall be 
        used to design and implement programs to assist businesses, 
        especially those in lower income urban communities, to become 
        more productive and able to compete in the global marketplace.
            (2) Specific authorized activities.--Activities conducted 
        with funds made available under this section may include 
        research on, or planning and implementation of technology 
        transfer, technical training, the delivery of services, or 
        technical assistance in--
                    (A) business development;
                    (B) business creation;
                    (C) business expansion; and
                    (D) human resource management.
    (c) Peer Review Panel.--
            (1) Establishment.--Not later than 90 days after the date 
        on which the Secretary publishes the announcement in the 
        Federal Register in accordance with subsection (a)(3), the 
        Secretary shall appoint a peer review panel (hereafter in this 
        section referred to as the ``panel'').
            (2) Membership.--In appointing the panel under paragraph 
        (1), the Secretary shall consult with officials of other 
        Federal agencies and with non-Federal organizations in order to 
        ensure that--
                    (A) the panel membership is geographically 
                balanced; and
                    (B) the panel is composed of representatives from 
                public and private institutions of higher education, 
                labor, business, and nonprofit organizations having 
                expertise in business development in lower income urban 
                communities.
            (3) Duties.--The panel shall--
                    (A) review applications submitted under this 
                section; and
                    (B) make recommendations to the Secretary 
                concerning the selection of grant recipients.
    (d) Disbursement of Funds.--
            (1) Limitation on amount.--The Secretary shall not provide 
        assistance under this section to any recipient which exceeds 
        $400,000 during any 1-year period.
            (2) Equitable geographic distribution.--The Secretary shall 
        award grants under this section in a manner that achieves 
        equitable geographic distribution of such grants.
    (e) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Lower income urban community.--The term ``lower income 
        urban community'' means an urban area in which the percent of 
        residents living below the Federal poverty level is not less 
        than 115 percent of the statewide average.
            (2) Urban area.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``urban area'' means a primary 
                metropolitan statistical area of the United States 
                Department of Commerce, Bureau of the Census.
                    (B) Exception.--With respect to a State that does 
                not contain an urban area, as defined in subparagraph 
                (A), the Secretary shall designate 1 area in the State 
                as an urban area for purposes of this section.
            (3) Eligible institution.--
                    (A) Institution or consortium.--The term ``eligible 
                institution'' means a nonprofit institution of higher 
                education that meets the requirements of subparagraph 
                (B), or a consortium of such institutions, any 1 of 
                which meets the requirements of subparagraph (B).
                    (B) Requirements.--An institution meets the 
                requirements of this subparagraph if the institution--
                            (i) is located in an urban area;
                            (ii) draws a substantial portion of its 
                        undergraduate students from the urban area in 
                        which such institution is located, or from 
                        contiguous areas;
                            (iii) carries out programs to make 
                        postsecondary educational opportunities more 
                        accessible to residents of such urban area, or 
                        contiguous areas;
                            (iv) has the present capacity to provide 
                        resources responsive to the needs and 
                        priorities of such urban area and contiguous 
                        areas;
                            (v) offers a range of professional, 
                        technical, or graduate programs sufficient to 
                        sustain the capacity of such institution to 
                        provide such resources;
                            (vi) has demonstrated and sustained a sense 
                        of responsibility to such urban area and 
                        contiguous areas and the people of such areas; 
                        and
                            (vii) has a school of business accredited 
                        by the American Assembly of Collegiate Schools 
                        of Business (or similar organization) with 
                        faculty experienced in conducting research on 
                        issues of immediate concern to small and 
                        emerging businesses.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $10,000,000, for fiscal year 1995; and
            (2) such sums as may be necessary, for fiscal years 1996, 
        1997, 1998, and 1999.

SEC. 1303. PROHIBITION ON SOLICITATION OF CAMPAIGN CONTRIBUTIONS BY 
              PERSONS AWARDING CONTRACTS.

    (a) In General.--Chapter 29 of title 18, United States Code, is 
amended by adding at the end the following new section:
``Sec. 610. Solicitation of political contributions by persons awarding 
              contracts
    ``Any person who awards any contract or grant under any provision 
of, or any amendment made by, the National Competitiveness Act of 1994 
who, during the 5-year period beginning on the date the contract or 
grant is awarded, knowingly solicits a political contribution (within 
the meaning of section 7322(3) of title 5, United States Code) from any 
person who was awarded such contract or grant (or any owner, officer, 
employee, or agent thereof) shall be imprisoned for 1 year or fined not 
more than $10,000, or both.''.
    (b) Conforming Amendment.--The table of sections for chapter 29 of 
title 18, United States Code, is amended by adding at the end the 
following new item:

``610. Solicitation of political contributions by persons awarding 
                            contracts.''.

            Attest:






                                                             Secretary.

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