I

103D CONGRESS

1ST SESSION H. R. 820

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.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 4, 1993

Mr. VALENTINE (for himself, Mr. BROWN, Mr. MINETA, Mrs. LLOYD, Mr.

GLICKMAN, Mr. VOLKMER, Mr. BOEHLERT, Mr. HALL of Texas, Mr.

MCCURDY, Mr. HENRY, Mr. TORRICELLI, Mr. BOUCHER, Mr. TRAFICANT, Mr. HAYES, Mr. BACCHUS of Florida, Mr. ROEMER, Mr. CRAMER,

Mr. SWETT, Mr. BARCIA, Mr. KLEIN, Mr. FINGERHUT, Mr. MCHALE,

Mr. BECERRA, Ms. HARMAN, Mr. JOHNSON of Georgia, Mr. COPPERSMITH, Ms. ESHOO, Mr. INSLEE, Ms. E.B. JOHNSON of Texas, Mr.

MINGE, Mr. SCOTT, Ms. WOOLSEY, Mr. MOORHEAD, Mr. REGULA, Mr.

RIDGE, Mr. THORNTON, Mr. ENGEL, and Mr. OLVER) introduced the following bill; which was referred to the Committee on Science, Space, and

Technology

A BILL

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

3 TITLE I—GENERAL PROVISIONS

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

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

6 ‘‘National Competitiveness Act of 1993’’.

7 (b) TABLE OF CONTENTS.—

TITLE I—GENERAL PROVISIONS

Sec. 101. Short title; table of contents.

Sec. 102. Findings.

Sec. 103. Purposes.

Sec. 104. Definitions.

TITLE II—MANUFACTURING

Subtitle A—Manufacturing Technology and Extension

Sec. 201. Short title.

Sec. 202. Findings, purpose, and statement of policy.

Sec. 203. Role of the Department of Commerce.

Sec. 204. National Technology Outreach Program.

Sec. 205. Advanced Manufacturing Technology Development Program.

Sec. 206. Miscellaneous and conforming amendments.

Sec. 207. Manufacturing Technology Centers.

Sec. 208. State Technology Extension Program.

Subtitle B—National Science Foundation Manufacturing Programs

Sec. 211. Role of the National Science Foundation in manufacturing.

Sec. 212. Engineering and Cooperative Research Centers.

Sec. 213. Manufacturing traineeships and fellowships.

Sec. 214. Total quality management.

TITLE III—CRITICAL TECHNOLOGIES

Subtitle A—Benchmarking Science and Technology

Sec. 301. Benchmarking United States science and technology against foreign

capabilities.

Subtitle B—Advanced Technology Program

Sec. 321. Development of program plan.

Sec. 322. Large scale research and development consortia.

Sec. 323. Technical amendments.

Subtitle C—Civilian Technology Loan Program
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Sec. 331. Loan and loan guarantee authority.

Sec. 332. Terms and conditions.

Sec. 333. Technical assistance for lenders and borrowers.

Sec. 334. Definitions.

Subtitle D—Civilian Technology Development Program

Sec. 341. Short title.

Sec. 342. Definitions.

Sec. 343. Establishment and purpose.

Sec. 344. Advisory Committee.

Sec. 345. Organization and licensing.

Sec. 346. Capital and management requirements.

Sec. 347. Financing for licensees.

Sec. 348. Issuance and guarantee of trust certificates.

Sec. 349. Capital for qualified business concerns.

Sec. 350. Operation.

Sec. 351. Regulations; liability.

Sec. 352. Technical assistance for licensees and qualified business concerns.

Sec. 353. Annual audit and report.

Sec. 354. Reports, investigations, and examinations.

Sec. 355. Revocation and suspension of licenses; cease and desist orders.

Sec. 356. Injunctions and other orders.

Sec. 357. Conflicts of interest.

Sec. 358. Removal or suspension of directors and officers.

Sec. 359. Violations.

Sec. 360. Civil penalties.

Sec. 361. Antitrust savings clause.

TITLE IV—MISCELLANEOUS

Sec. 401. Department of Commerce Technology Advisory Board.

Sec. 402. International standardization.

Sec. 403. Malcolm Baldrige Award amendments.

Sec. 404. Cooperative research and development agreements.

Sec. 405. Clearinghouse on State and Local Initiatives.

Sec. 406. Competitiveness assessments and evaluations.

Sec. 407. Study of semiconductor lithography technologies.

Sec. 408. American workforce quality partnerships.

Sec. 409. Severability.

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.

1 SEC. 102. FINDINGS.

2 The Congress finds that—
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1 (1) the creation, development, and adoption of

2 advanced technologies are significant determinants

3 of economic growth, productivity improvement, and

4 competitive standing;

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

6 technology adoption in the United States has been

7 about half that of some prominent foreign nations

8 and has contributed to a relative decline in United

9 States industrial competitiveness;

10 (3) maintaining a highly competitive manufac11 turing base in the United States is essential for eco12 nomic prosperity and national welfare and requires

13 continuous development and adoption of advanced

14 manufacturing technologies that will enable United

15 States manufacturers to develop innovative products

16 rapidly and manufacture goods of the highest quality

17 at competitive prices;

18 (4) there is general agreement on which fields

19 of technology are critical for economic competitive20 ness through the first decade of the next century,

21 but the United States Government lacks a com22 prehensive strategy for ensuring that the appro23 priate research, development, and applications activi24 ties and other reforms occur so these technologies

25 are readily available to United States manufacturers
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1 for incorporation into products made in the United

2 States;

3 (5) technology-based products of the twenty4 first century must be developed incorporating the

5 values of sustainable development, including low en6 ergy and material use, safety, recyclability, and

7 minimal pollution;

8 (6) the cost of and difficulty in obtaining in9 vestment capital for small high technology compa10 nies are significant deterrents to their formation, de11 velopment, and growth;

12 (7) standardization of weights and measures,

13 including development and promotion of product and

14 quality standards, has a significant role to play in

15 competitiveness; and

16 (8) strategic technology planning for sustain17 able economic growth, the support of critical civilian

18 technology research, development, and application,

19 and advancement of manufacturing technology re20 search, development, and adoption are appropriate

21 Government roles.

22 SEC. 103. PURPOSES.

23 The purposes of this Act are to—

24 (1) promote and facilitate the creation, develop25 ment, and adoption of technologies that will contrib-
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1 ute significantly to United States competitiveness,

2 employment, and sustainable economic growth;

3 (2) improve the competitiveness of United

4 States manufacturers, particularly small- and me5 dium-sized firms, by developing a nationwide tech6 nology outreach program to improve access to infor7 mation, expertise, and technology required to com8 pete throughout the world;

9 (3) promote the development and rapid applica10 tion of advanced manufacturing technologies and

11 processes, with emphasis on environmentally sound

12 practices and sustainable economic growth;

13 (4) stimulate long-term investment in United

14 States companies engaged in development or utiliza15 tion of critical or other advanced technologies;

16 (5) establish mechanisms to ensure synergistic

17 linkages between Federal, State, and local initiatives

18 aimed at enhancing the technological competitiveness

19 of United States products;

20 (6) enhance and expand the core programs of

21 the National Institute of Standards and Technology,

22 including the Advanced Technology Program; and

23 (7) monitor and assess foreign technology capa24 bilities relative to those of the United States in order

25 to assist United States industry and policymakers in
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1 identifying and responding to competitive opportuni2 ties and challenges.

3 SEC. 104. DEFINITIONS.

4 For purposes of this Act—

5 (1) the term ‘‘advanced manufacturing tech6 nology’’ has the meaning given such term in section

7 4 of the Stevenson-Wydler Technology Innovation

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

9 Act;

10 (2) the term ‘‘Director’’ means the Director of

11 the Institute;

12 (3) the term ‘‘Institute’’ means the National In13 stitute of Standards and Technology;

14 (4) the term ‘‘modern technology’’ has the

15 meaning given such term in section 4 of the Steven16 son-Wydler Technology Innovation Act of 1980, as

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

18 (5) the term ‘‘Secretary’’ means the Secretary

19 of Commerce;

20 (6) the term ‘‘sustainable economic growth’’ has

21 the meaning given such term in section 4 of the Ste22 venson-Wydler Technology Innovation Act of 1980,

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

24 (7) the term ‘‘United States manufacturer’’ has

25 the meaning given such term in section 4 of the Ste-
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1 venson-Wydler Technology Innovation Act of 1980,

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

3 (8) the term ‘‘Under Secretary’’ means the

4 Under Secretary of Commerce for Technology.

5 TITLE II—MANUFACTURING

6 Subtitle A—Manufacturing

7 Technology and Extension

8 SEC. 201. SHORT TITLE.

9 This subtitle may be cited as the ‘‘Manufacturing

10 Technology and Extension Act of 1993’’.

11 SEC. 202. FINDINGS, PURPOSE, AND STATEMENT OF POL12 ICY.

13 The Stevenson-Wydler Technology Innovation Act of

14 1980 (15 U.S.C. 3701 et seq.) is amended by adding at

15 the end the following new title:

16 ‘‘TITLE III—MANUFACTURING

17 TECHNOLOGY

18 ‘‘SEC. 301. FINDINGS, PURPOSE, AND STATEMENT OF POL19 ICY.

20 ‘‘(a) FINDINGS.—Congress finds and declares the fol21 lowing:

22 ‘‘(1) United States manufacturers, especially

23 small businesses, require the adoption and imple24 mentation of both modern and advanced manufac-
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1 turing and process technologies to meet the chal2 lenge of foreign competition.

3 ‘‘(2) The development and application of mod4 ern and advanced manufacturing technologies are

5 vital to the sustainable economic growth, standard of

6 living, competitiveness in world markets, and na7 tional security and welfare of the United States.

8 ‘‘(3) New developments in flexible, computer-in9 tegrated manufacturing, electronic manufacturing

10 communications networks, and other new tech11 nologies make possible dramatic improvements

12 across all industrial sectors in productivity, quality,

13 and the speed with which manufacturers can re14 spond to changing market opportunities.

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

16 science and technology to manufacturing is also vital

17 to the Nation’s prosperity, national and economic se18 curity, industrial production, engineering, and sci19 entific advancement.

20 ‘‘(5) The Department of Commerce’s Tech21 nology Administration can continue to play an im22 portant role in assisting United States industry to

23 develop, test, and adopt modern and advanced man24 ufacturing technologies and in establishing high-per25 formance computing technology testbeds to develop,
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1 refine, test, and transfer advanced manufacturing

2 and networking technologies and associated applica3 tions.

4 ‘‘(b) PURPOSE.—It is the purpose of this title to help

5 ensure the continued leadership of the United States in

6 manufacturing by enhancing the Department of Com7 merce’s technology programs to—

8 ‘‘(1) provide United States manufacturers, es9 pecially small- and medium-sized companies, with

10 ready access to high quality advice and assistance in

11 the development, adoption, and improvement of

12 modern manufacturing technology, and in solving

13 their specific technology-based problems; and

14 ‘‘(2) encourage, facilitate, and support the de15 velopment and adoption of advanced manufacturing

16 technologies by United States manufacturers.

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

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

19 ‘‘(1) Federal agencies, particularly the Depart20 ment of Commerce, shall work with industry, labor,

21 and the States to ensure that within 10 years of the

22 date of enactment of this title the United States is

23 second to no other nation in the development, adop24 tion, and use of modern and advanced manufactur25 ing technology;
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1 ‘‘(2) the Department of Commerce shall work

2 with all the major Federal research and development

3 agencies to encourage the development and adoption

4 of advanced manufacturing technologies, and shall

5 work closely with United States industry and labor,

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

7 test those technologies; and

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

9 high priority on the establishment and growth of a

10 National Technology Outreach Program to promote

11 and facilitate the development and use by United

12 States manufacturers of modern and advanced man13 ufacturing systems and applications for manufactur14 ing.

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

16 construed as modifying the duties and responsibilities of

17 the Department of Energy with regard to its technology

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

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

20 Title III of the Stevenson-Wydler Technology Innova21 tion Act of 1980, as added by section 202 of this Act,

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

23 section:
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1 ‘‘SEC. 302. ROLE OF THE DEPARTMENT OF COMMERCE.

2 ‘‘(a) DEPARTMENT OF COMMERCE.—The Depart3 ment of Commerce shall, consistent with the purposes and

4 policies of section 301, work with United States industry

5 and labor and the States to develop advanced manufactur6 ing technologies and to promote and assist the adoption

7 and use of modern and advanced manufacturing tech8 nologies and practices throughout the United States. In

9 carrying out this title, the Secretary, acting, as appro10 priate, through the Under Secretary and the Director,

11 shall—

12 ‘‘(1) consult with other Federal agencies, in13 cluding the Department of Defense, the Department

14 of Energy, and the National Aeronautics and Space

15 Administration to ensure consistent and, where pos16 sible, coordinated efforts to promote the development

17 and adoption of modern and advanced manufactur18 ing technologies;

19 ‘‘(2) assist the Office of Science and Tech20 nology Policy in its efforts to coordinate the manu21 facturing technology activities of the various Federal

22 agencies; and

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

24 State, and local agencies, manufacturing extension

25 programs, private industry, worker organizations,

26 and academia to encourage and facilitate the use of
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1 both advanced manufacturing technologies, including

2 those developed by the Advanced Manufacturing

3 Technology Development Program established under

4 section 304 of this Act, and modern manufacturing

5 technologies and practices to large, medium-sized,

6 and small manufacturing firms throughout the Unit7 ed States.

8 The Secretary shall annually report to Congress on actions

9 taken under this subsection.

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

11 permitted by other law, other Federal agencies shall assist

12 the Secretary in carrying out this title.’’.

13 SEC. 204. NATIONAL TECHNOLOGY OUTREACH PROGRAM.

14 Title III of the Stevenson-Wydler Technology Innova15 tion Act of 1980, as added by sections 202 and 203 of

16 this Act, is further amended by adding at the end the fol17 lowing new section:

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

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

20 hereby established a National Technology Outreach Pro21 gram (in this section referred to as the ‘Outreach Pro22 gram’), the purpose of which shall be to—

23 ‘‘(1) interconnect, programatically and elec24 tronically, the Nation’s technology and manufactur25 ing extension centers, programs, and activities; and
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1 ‘‘(2) assist United States manufacturers, espe2 cially small- and medium-sized firms, to expand and

3 accelerate the use of modern manufacturing tech4 nologies and practices and to develop and adopt ad5 vanced manufacturing technologies. The Secretary,

6 acting through the Under Secretary and the Direc7 tor, shall implement and coordinate the Outreach

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

9 year plan for the Outreach Program, to be submit10 ted to the Congress under subsection (g).

11 ‘‘(b) PROGRAM COMPONENTS.—The Outreach Pro12 gram shall constitute a partnership between the Depart13 ment of Commerce, the States, the private sector, and,

14 as appropriate, other Federal agencies to provide a na15 tional system of manufacturing and technology extension

16 centers and technical services to United States manufac17 turers, particularly small- and medium-sized manufactur18 ers. The Outreach Program shall include—

19 ‘‘(1) Manufacturing Outreach Centers estab20 lished under subsection (c);

21 ‘‘(2) Regional Centers for the Transfer of Man22 ufacturing Technology established under section 25

23 of the National Institute of Standards and Tech24 nology Act (15 U.S.C. 278k);
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1 ‘‘(3) the State Technology Extension Program

2 established under section 26 of the National Insti3 tute of Standards and Technology Act (15 U.S.C.

4 278l);

5 ‘‘(4) the Outreach Program Information Net6 work and the Clearinghouse established under sub7 sections (d) and (e) of this section, respectively; and

8 ‘‘(5) other technology and manufacturing exten9 sion centers that the Secretary considers appropriate

10 for inclusion in the Outreach Program.

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

12 Eligible government and private sector organizations that

13 are actively engaged in technology or manufacturing ex14 tension activities may apply to the Secretary for designa15 tion as Manufacturing Outreach Centers, in such form

16 and manner as the Secretary may prescribe. Eligible orga17 nizations include Federal, State, and local government

18 agencies, their extension programs, and their laboratories;

19 small business development centers; and appropriate pro20 grams run by professional societies, worker organizations,

21 industrial organizations, for-profit or nonprofit organiza22 tions, universities, community colleges, and technical

23 schools and colleges.

24 ‘‘(2) The Secretary shall establish standards, consist25 ent with the requirements of subsection (f), for designa-
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1 tion of an existing technology or manufacturing extension

2 program as a Manufacturing Outreach Center.

3 ‘‘(3) The Secretary may, through a competitive proc4 ess, make grants, subject to the availability of appropria5 tions, to Manufacturing Outreach Centers designated in

6 accordance with the standards established under para7 graph (2), to enable them to better fulfill the purposes

8 and perform the activities of the Outreach Program. The

9 purpose of such grants is to upgrade the overall quality

10 of the Outreach Program and to contribute to the goal

11 of ready availability of the services and information pro12 vided through the Outreach Program, including informa13 tion on modern and advanced manufacturing technology,

14 to all interested United States manufacturers. Such

15 grants shall be awarded to increase the capabilities and

16 capacity of Manufacturing Outreach Centers and may not

17 be used to cover costs of current activities. Manufacturing

18 Outreach Centers may not concurrently receive financial

19 assistance under section 25 of the National Institute of

20 Standards and Technology Act and grants under this

21 paragraph. Grants may be awarded under this paragraph

22 for an initial period not to exceed 3 years and may be

23 renewed for one additional period, not to exceed 2 years.

24 Such grants may not at any time exceed 33 percent of

25 the operating costs of the grant recipient.
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1 ‘‘(4) In selecting applicants to participate in the Out2 reach Program and in making grants under paragraph

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

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

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

10 operate, and maintain, through acquisition or other

11 means, an instantaneous, interactive electronic commu12 nications network (in this section referred to as the ‘out13 reach network’) to serve the Outreach Program, to facili14 tate effective and efficient interaction within it, and to

15 permit the collection and dissemination in electronic form,

16 in a timely and accurate manner, of information described

17 in subsection (e). The outreach network shall, wherever

18 practicable, make use of existing computer networks, data

19 bases, and electronic bulletin boards. The design, configu20 ration, acquisition plan, and operating policies, including

21 user fees and appropriate electronic access for public and

22 private information suppliers and users, of the outreach

23 network shall be included in the 5-year plan prepared

24 under subsection (g)(2) and shall address—
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1 ‘‘(A) effective mechanisms for providing operat2 ing funds for the maintenance and use of the out3 reach network established under this paragraph, in4 cluding user fees, industry support, and continued

5 Federal investment;

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

7 outreach network, including its relationship with

8 other public or private information services;

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

10 distributed over the outreach network; and

11 ‘‘(D) appropriate policies—

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

13 information that might be available on the out14 reach network and to protect the privacy of

15 users of the outreach network; and

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

17 outreach network and its information to mem18 ber organizations of the Outreach Program and

19 to United States manufacturers.

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

21 network established under paragraph (1) shall be designed

22 and configured in a manner that will enable migration to

23 and interoperability with networks and technologies devel24 oped under the National High-Performance Computing
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1 Program described in section 101 of the High-Perform2 ance Computing Act of 1991 (15 U.S.C. 5511).

3 ‘‘(e) CLEARINGHOUSE.—(1) The Secretary shall de4 velop a clearinghouse system, using existing public and

5 private sector information providers and carriers where

6 appropriate, to—

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

8 appropriate to the purpose of the Outreach Program

9 stated in subsection (a), from all appropriate Fed10 eral sources, and where appropriate from other

11 sources, providing assistance where necessary in

12 making such information electronically available

13 through and compatible with the outreach network;

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

15 network, by United States manufacturers and other

16 interested United States private sector parties to the

17 most recent relevant available information and ex18 pertise;

19 ‘‘(C) ensure that common standards of inter20 connection are utilized by the outreach network and

21 the clearinghouse to allow maximum interoperability

22 and usership; and

23 ‘‘(D) to the extent practicable, inform such

24 manufacturers of the availability of such informa25 tion.
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1 ‘‘(2) The clearinghouse shall include information

2 available electronically on—

3 ‘‘(A) activities of Manufacturing Outreach Cen4 ters, Regional Centers for the Transfer of Manufac5 turing Technology, the State Technology Extension

6 Program, and the users of the outreach network;

7 ‘‘(B) domestic and international standards and

8 other export promotion information, including con9 formity assessment requirements and procedures;

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

11 and quality principles and standards;

12 ‘‘(D) manufacturing processes minimizing waste

13 and negative environmental impact;

14 ‘‘(E) federally funded technology development

15 and transfer programs;

16 ‘‘(F) responsibilities assigned to the Clearing17 house for State and Local Initiatives on Productiv18 ity, Technology, and Innovation under section 102 of

19 this Act; and

20 ‘‘(G) how to access data bases and services.

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

22 this section, the Secretary shall satisfy the following re23 quirements:

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

25 network shall be established and operated through
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1 cooperation and co-funding among Federal, State,

2 and local governments, other public and private con3 tributors, and end users.

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

5 network shall utilize and leverage, to the extent

6 practicable, existing organizations, data bases, elec7 tronic networks, facilities, capabilities, and existing

8 standards for interconnection, and shall be designed

9 to complement rather than supplant State and local

10 programs.

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

12 network shall be subject to all applicable provisions

13 of law for the protection of trade secrets and busi14 ness confidential information.

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

16 the Outreach Program and information available

17 through the outreach network servicing the Outreach

18 Program shall be limited, as appropriate, to United

19 States manufacturers.

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

21 the management structure and staffing of the Manu22 facturing Outreach Centers. The Outreach Program

23 shall strive for geographical balance with the ulti24 mate goal of access for all United States manufac25 turers.
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1 ‘‘(6) Manufacturing Outreach Centers should

2 have the capability to deliver outreach services di3 rectly to United States manufacturers, actively work

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

5 the extent practicable, maximize the exposure of

6 manufacturers to demonstrations of modern tech7 nologies in use, including flexible manufacturing

8 practices.

9 ‘‘(7) The Department of Commerce shall de10 velop mechanisms for—

11 ‘‘(A) soliciting the perspectives of manufac12 turers using the services of the Manufacturing

13 Outreach Centers and Regional Centers for the

14 Transfer of Manufacturing Technology; and

15 ‘‘(B) evaluating the effectiveness of the

16 Manufacturing Outreach Centers and Regional

17 Centers for the Transfer of Manufacturing

18 Technology.

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

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

21 after consultation with the Under Secretary, the Director,

22 the Department of Commerce Technology Advisory Board,

23 and a cross-section of potential participants in the Out24 reach Program, shall submit an initial plan for the imple25 mentation of this title to Congress—
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1 ‘‘(A) describing how the Secretary will carry out

2 the responsibility to create, operate, and support the

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

6 Technology Administration and other appropriate

7 Federal, State, and local agencies;

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

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

14 technology extension agents; and

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

18 servicing the Outreach Program; and

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

20 a National Conference of States on Technology Ex21 tension, similar in structure to the National Con22 ference on Weights and Measures, and, if the Sec23 retary determines that such a Conference is advis24 able, developing, in consultation with the States and

25 other interested parties, a plan for the establish-
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1 ment, operation, funding, and evaluation of such a

2 Conference.

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

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

5 Secretary, the Director, and the Department of Commerce

6 Technology Advisory Board, shall prepare and submit to

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

8 Program and the outreach network and clearinghouse es9 tablished under subsections (d) and (e), respectively. Such

10 5-year plan shall identify appropriate methods for expand11 ing the Outreach Program in a geographically balanced

12 manner. Such 5-year plan shall include a detailed imple13 mentation plan and cost estimates and shall take into con14 sideration and build on the report submitted under para15 graph (1).

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

17 5-year plan under paragraph (2), the Secretary shall an18 nually report to the Congress, at the time of the Presi19 dent’s annual budget request to Congress, on—

20 ‘‘(A) progress made in carrying out this section

21 during the preceding fiscal year;

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

23 ‘‘(C) performance in adhering to schedules; and
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1 ‘‘(D) any recommendations for legislative

2 changes necessary to enhance the Outreach Pro3 gram.

4 The report under this paragraph submitted at the end of

5 the fourth year of operation of the Outreach Program

6 shall include recommendations on whether to terminate

7 the Outreach Program or extend it for an additional pe8 riod not to exceed 5 years.’’.

9 SEC. 205. ADVANCED MANUFACTURING TECHNOLOGY DE10 VELOPMENT PROGRAM.

11 Title III of the Stevenson-Wydler Technology Innova12 tion Act of 1980, as added by sections 202, 203, and 204

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

14 following new section:

15 ‘‘SEC. 304. ADVANCED MANUFACTURING TECHNOLOGY DE16 VELOPMENT PROGRAM.

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

18 Under Secretary and the Director, shall establish an Ad19 vanced Manufacturing Technology Development Program

20 which shall include projects to develop advanced manufac21 turing systems, networks, and electronic data exchange.

22 ‘‘(b) PURPOSE.—The purpose of the Advanced Manu23 facturing Technology Development Program is to create

24 collaborative multiyear technology development programs

25 involving United States industry and, as appropriate,
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1 other Federal agencies and laboratories, the States, work2 er organizations, universities and colleges, and other inter3 ested persons, in order to develop, refine, test, and trans4 fer design and manufacturing technologies and associated

5 applications, including advanced computer integration and

6 electronic networks for manufacturing information ex7 change.

8 ‘‘(c) PROGRAM COMPONENTS.—The Advanced Manu9 facturing Technology Development Program shall in10 clude—

11 ‘‘(1) the advanced manufacturing research and

12 development activities at the Institute; and

13 ‘‘(2) one or more technology development

14 testbeds within the United States, selected in ac15 cordance with procedures, including cost sharing, es16 tablished for the Advanced Technology Program es17 tablished under section 28 of the National Institute

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

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

20 transfer advanced manufacturing, data exchange,

21 and networking technologies and associated applica22 tions.

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

24 Manufacturing Technology Development Program, under
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1 the coordination of the Secretary, through the Director,

2 shall—

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

4 support the development of, the equipment, com5 puter software, and systems integration necessary

6 for the successful operation within the United States

7 of advanced design and manufacturing systems and

8 associated electronic networks;

9 ‘‘(2) establish at the Institute and the tech10 nology development testbed or testbeds—

11 ‘‘(A) prototype advanced computer-inte12 grated manufacturing systems; and

13 ‘‘(B) prototype electronic networks linking

14 manufacturing systems;

15 ‘‘(3) assist industry to develop voluntary con16 sensus standards relevant to advanced computer-in17 tegrated manufacturing operations, including stand18 ards for networks, electronic data interchange, and

19 digital product data specifications;

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

21 and networking technologies an integral part of de22 sign and production processes where appropriate;

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

24 technical barriers to the successful and cost-effective

25 operation of advanced manufacturing systems and
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1 networks and to promote and facilitate electronic

2 data exchange;

3 ‘‘(6) facilitate industry efforts to develop and

4 test new applications for manufacturing systems,

5 networks, and information exchange;

6 ‘‘(7) involve in the Advanced Manufacturing

7 Technology Development Program, to the maximum

8 extent practicable, both those United States manu9 facturers which make manufacturing technology and

10 related computer equipment and software, and com11 panies which buy such technology, equipment and

12 software;

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

14 company managers, engineers, and employees in the

15 operation and applications of advanced manufactur16 ing technologies and networks, with particular em17 phasis on training for production workers in the ef18 fective use of advanced manufacturing technology;

19 ‘‘(9) work with private industry, universities,

20 and other interested parties to develop standards,

21 tools, and techniques for the use of advanced com22 puter-based training systems, including multi-media

23 and interactive learning technologies;

24 ‘‘(10) involve small and medium-sized manufac25 turers in its activities;
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•HR 820 IH

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

2 appropriate, between the technology development

3 testbeds and the outreach network created under

4 section 303(d); and

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

6 High-Performance Computing Program described in

7 section 101 of the High-Performance Computing Act

8 of 1991 (15 U.S.C. 5511) to ensure that both pro9 grams are complementary and compatible.

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

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

12 the Secretary shall give preferential consideration to appli13 cants that have existing computer expertise in manufac14 turing applications and the ability to diffuse such expertise

15 into industry, and that, in the case of joint research and

16 development ventures, include both suppliers and users of

17 advanced manufacturing technology.

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

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

20 this section may include one or more State research orga21 nizations, universities, independent research organiza22 tions, or Regional Centers for the Transfer of Manufactur23 ing Technology (as created under section 25 of the Na24 tional Institute of Standards and Technology Act) and
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1 other organizations as the Secretary considers appro2 priate.

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

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

5 request for proposals is issued, the Secretary shall hold

6 one or more workshops to solicit advice from United

7 States industry and from other Federal agencies, particu8 larly the Department of Defense, regarding the specific

9 missions and activities of the testbeds.

10 ‘‘(2) The Secretary shall, to the greatest extent pos11 sible, coordinate activities under this section with activities

12 of other Federal agencies and initiatives relating to Com13 puter-Aided Acquisition and Logistics Support, electronic

14 data interchange, flexible computer-integrated manufac15 turing, and enterprise integration.

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

17 facilities, equipment, or personnel from other Federal

18 agencies in order to carry out responsibilities under this

19 section.

20 ‘‘(g) APPLICATION OF ANTITRUST LAWS.—Nothing

21 in this section shall be construed to create any immunity

22 to any civil or criminal action under any Federal or State

23 antitrust law, or to alter or restrict in any manner the

24 applicability of any Federal or State antitrust law.’’.
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1 SEC. 206. MISCELLANEOUS AND CONFORMING AMEND2 MENTS.

3 (a) DEFINITIONS.—Section 4 of the Stevenson4 Wydler Technology Innovation Act of 1980 (15 U.S.C.

5 3703) is amended by adding at the end the following new

6 paragraphs:

7 ‘‘(14) ‘Director’ means the Director of the Na8 tional Institute of Standards and Technology.

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

10 of Standards and Technology.

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

12 Secretary of Commerce for Technology Policy.

13 ‘‘(17) ‘Advanced manufacturing technology’

14 means—

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

16 robots, automated process control equipment,

17 computerized flexible manufacturing systems,

18 associated computer software, and other tech19 nology for improving manufacturing and indus20 trial production of goods, including bio21 technology products, which advance the state22 of-the-art; or

23 ‘‘(B) novel techniques and processes not

24 previously generally available that—

25 ‘‘(i) improve manufacturing quality,

26 productivity, and practices, including engi-
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1 neering design, quality assurance, concur2 rent engineering, continuous process pro3 duction technology, inventory management,

4 upgraded worker skills, and communica5 tions with customers and suppliers; or

6 ‘‘(ii) promote sustainable economic

7 growth.

8 ‘‘(18) ‘Modern technology’ means the best avail9 able proven technology, techniques, and processes

10 appropriate to enhancing the productivity of manu11 facturers or to promoting sustainable economic

12 growth.

13 ‘‘(19) ‘Sustainable economic growth’ means eco14 nomic growth that enhances the national quality of

15 life and preserves environmental integrity.

16 ‘‘(20) ‘United States manufacturer’ means a

17 company described in section 28(d)(9)(B) of the Na18 tional Institute of Standards and Technology Act

19 (15 U.S.C. 278n(d)(9)(B)) that is engaged in manu20 facturing activities.

21 ‘‘(21) ‘Benchmarking’ means the assessment of

22 foreign science and technology capabilities relative to

23 comparable United States capabilities.’’.
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1 (b) REDESIGNATIONS.—The Stevenson-Wydler Tech2 nology Innovation Act of 1980 (15 U.S.C. 3701 et seq.)

3 is amended—

4 (1) by inserting immediately after section 4 the

5 following new title heading:

6 ‘‘TITLE I—DEPARTMENT OF COMMERCE

7 AND RELATED PROGRAMS’’;

8 (2) by redesignating sections 5 through 10 as

9 sections 101 through 106, respectively;

10 (3) by striking section 21;

11 (4) by redesignating sections 16 through 20,

12 and 22, as sections 107 through 112, respectively;

13 (5) by inserting immediately after section 112

14 (as redesignated by paragraph (4) of this sub15 section) the following new title heading:

16 ‘‘TITLE II—FEDERAL TECHNOLOGY

17 TRANSFER’’;

18 (6) by redesignating sections 11 through 15 as

19 sections 201 through 205, respectively;

20 (7) by redesignating section 23 as section 206;

21 (8) in section 4—

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

23 appears and inserting in lieu thereof ‘‘section

24 101’’;
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•HR 820 IH

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

2 ‘‘section 6’’ and ‘‘section 8’’ each place they ap3 pear and inserting in lieu thereof ‘‘section 102’’

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

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

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

7 (9) in section 105 (as redesignated by para8 graph (2) of this subsection) by striking ‘‘section 6’’

9 each place it appears and inserting in lieu thereof

10 ‘‘section 102’’;

11 (10) in section 106(d) (as redesignated by para12 graph (2) of this subsection) by striking ‘‘7, 9, 11,

13 15, 17, or 20’’ and inserting in lieu thereof ‘‘103,

14 105, 108, 111, 201, or 205’’;

15 (11) in section 202(b) (as redesignated by para16 graph (6) of this subsection) by striking ‘‘section

17 14’’ and inserting in lieu thereof ‘‘section 204’’;

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

19 paragraph (6) of this subsection) by striking ‘‘sec20 tion 12’’ and inserting in lieu thereof ‘‘section 202’’;

21 (13) in section 112 (as redesignated by para22 graph (4) of this subsection) by striking ‘‘sections

23 11, 12, and 13’’ and inserting in lieu thereof ‘‘sec24 tions 201, 202, and 203’’;
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•HR 820 IH

1 (14) in section 206 (as redesignated by para2 graph (7) of this subsection)—

3 (A) by striking ‘‘section 11(b)’’ in sub4 section (a)(2) and inserting in lieu thereof ‘‘sec5 tion 201(b)’’; and

6 (B) by striking ‘‘section 6(d)’’ in sub7 section (b) and inserting in lieu thereof ‘‘section

8 102(d)’’; and

9 (15) by adding at the end of section 201 (as re10 designated by paragraph (6) of this subsection) the

11 following new subsection:

12 ‘‘(j) ADDITIONAL TECHNOLOGY TRANSFER MECHA13 NISMS.—In addition to the technology transfer mecha14 nisms set forth in this section and section 202 of this Act,

15 the heads of Federal departments and agencies also may

16 transfer technologies through the technology transfer and

17 extension programs of the Department of Commerce and

18 the Department of Defense.’’.

19 SEC. 207. MANUFACTURING TECHNOLOGY CENTERS.

20 Section 25 of the National Institute of Standards and

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

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

23 follows: ‘‘MANUFACTURING TECHNOLOGY

24 CENTERS’’;
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1 (2) in subsection (c)(5), by striking ‘‘which are

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

3 a Center’’ and inserting in lieu thereof ‘‘to a maxi4 mum of one-third Federal funding. Each center

5 which receives financial assistance under this section

6 shall be evaluated during its sixth year of operation,

7 and at such subsequent times as the Secretary con8 siders appropriate, by an evaluation panel appointed

9 by the Secretary in the same manner as was the

10 evaluation panel previously appointed. The Secretary

11 shall not provide funding for additional years of the

12 Center’s operation unless the evaluation is positive

13 and the Secretary finds that continuation of funding

14 furthers the goals of the Department. Such addi15 tional Federal funding shall not exceed one-third of

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

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

18 (4) by adding at the end the following new sub19 sections:

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

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

22 after that evaluation, contract with the Center to provide

23 additional technology extension or transfer services above

24 and beyond the baseline activities of the Center. Such ad-
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•HR 820 IH

1 ditional services may include, but are not necessarily lim2 ited to, the development and operation of the following:

3 ‘‘(1) Programs to assist small and medium4 sized manufacturers and their employees in the Cen5 ter’s region to learn and apply the technologies,

6 techniques, and processes associated with systems

7 management technology, electronic data exchange, or

8 improving manufacturing productivity.

9 ‘‘(2) Services focused on the testing, develop10 ment, and application of manufacturing and process

11 technologies within specific technical fields such as

12 advanced materials or electronics fabrication for the

13 purpose of assisting United States companies, both

14 large and small and both within the Center’s original

15 service region and in other regions, to improve man16 ufacturing, product design, workforce training, and

17 production in those specific technical fields.

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

19 explore the value of innovative nonprofit manufac20 turing technology consortia to provide ongoing re21 search, technology transfer, and worker training as22 sistance for industrial members. An award under

23 this paragraph shall be for no more than $500,000

24 per year, and shall be subject to renewal after a 1-

25 year demonstration period.
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1 ‘‘(e) In addition to any assistance provided or con2 tracts entered into with a Center under this section, the

3 Director is authorized to make separate and smaller

4 awards, through a competitive process, to nonprofit orga5 nizations which wish to work with a Center. Such awards

6 shall be for the purpose of enabling those organizations

7 to provide supplemental outreach services, in collaboration

8 with the Center, to small and medium-sized manufacturers

9 located in parts of the region served by the Center which

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

11 served by any other manufacturing outreach center. Orga12 nizations which receive such awards shall be known as

13 Local Manufacturing Offices. In reviewing applications,

14 the Director shall consider the needs of rural as well as

15 urban manufacturers. No single award for a Local Manu16 facturing Office shall be for more than three years, awards

17 shall be renewable through the competitive awards proc18 ess, and no award shall be made unless the applicant pro19 vides matching funds at least equal to the amount received

20 under this section.

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

22 coordinate his efforts with the plans for the National

23 Technology Outreach Program established under section

24 303 of the Stevenson-Wydler Technology Innovation Act

25 of 1980.’’.
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1 SEC. 208. STATE TECHNOLOGY EXTENSION PROGRAM.

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

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

4 278l(a)), is amended—

5 (1) by inserting immediately after ‘‘(a)’’ the fol6 lowing new sentence: ‘‘There is established within

7 the Institute a State Technology Extension Pro8 gram.’’; and

9 (2) by inserting ‘‘through that Program’’ imme10 diately after ‘‘technical assistance’’.

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

12 National Institute of Standards and Technology Act (15

13 U.S.C. 278l) is amended by adding at the end the follow14 ing new subsection:

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

16 subsection (b) of this section, the State Technology Exten17 sion Program also may, through merit-based competitive

18 review processes—

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

21 Trade and Competitiveness Act of 1988, in order to

22 help States improve their planning and coordination

23 of technology extension activities;

24 ‘‘(2) support technology demonstration projects

25 to help States provide technical assistance and serv-
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•HR 820 IH

1 ices to small- and medium-sized manufacturers that

2 will improve their productivity and competitiveness;

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

4 innovative ways to help small and medium-sized

5 manufacturers improve their technical capabilities;

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

7 small and medium-sized manufacturers in rural as

8 well as urban areas adopt modern manufacturing

9 technologies;

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

11 defense manufacturing firms to adapt to modern or

12 advanced manufacturing technologies as they con13 vert to nondefense or dual-use purposes;

14 ‘‘(6) support worker technology education pro15 grams in the States at institutions such as research

16 universities, community colleges, labor education

17 centers, labor-management committees, and worker

18 organizations in production technologies critical to

19 the Nation’s future, with an emphasis on high-per20 formance work systems, the skills necessary to use

21 modern or advanced manufacturing systems well;

22 and

23 ‘‘(7) help States develop programs to train per24 sonnel who in turn can provide technical skills to
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1 managers and workers of United States manufactur2 ers.’’.

3 Subtitle B—National Science Foun4 dation Manufacturing Programs

5 SEC. 211. ROLE OF THE NATIONAL SCIENCE FOUNDATION

6 IN MANUFACTURING.

7 The Director of the National Science Foundation,

8 after appropriate consultation with the Secretary, the

9 Under Secretary, and the Director, shall—

10 (1) work with United States industry to identify

11 areas of research in advanced manufacturing tech12 nologies and practices that offer the potential to im13 prove United States productivity, competitiveness,

14 employment, and sustainable economic growth;

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

18 (3) work with the Technology Administration

19 and the Institute and, as appropriate, other Federal

20 agencies to accelerate the transfer to United States

21 industry of manufacturing research and innovations

22 developed at universities.
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1 SEC. 212. ENGINEERING AND COOPERATIVE RESEARCH

2 CENTERS.

3 The Director of the National Science Foundation

4 shall strengthen and expand the number of Engineering

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

7 with the goal of increasing the engineering talent base

8 versed in technologies critical to the Nation’s future, with

9 emphasis on advanced manufacturing technology and

10 practices, and of advancing fundamental engineering

11 knowledge in these technologies, including biotechnology.

12 At least one Engineering Research Center shall have a re13 search and education focus on the concerns of United

14 States manufacturers, including small- and medium-sized

15 firms that are trying to modernize their operations.

16 Awards under this section shall be made on a competitive,

17 merit review basis and on terms and conditions the Direc18 tor may prescribe to ensure that the purposes for which

19 the award is made are satisfied. Such awards may include

20 support for acquisition of instrumentation, equipment,

21 and facilities related to the research and education activi22 ties of the Centers and support for undergraduate stu23 dents to participate in the activities of the Centers.
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1 SEC. 213. MANUFACTURING TRAINEESHIPS AND FELLOW2 SHIPS.

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

4 National Science Foundation, in consultation with the

5 Secretary, may establish a program to provide traineeships

6 to graduate students at institutions of higher education

7 within the United States who choose to pursue masters

8 or doctoral degrees in manufacturing engineering.

9 (b) MANUFACTURING MANAGERS IN THE CLASS10 ROOM PROGRAM.—The Director of the National Science

11 Foundation, in consultation with the Secretary, may es12 tablish a program to provide fellowships, on a cost-shared

13 basis, to individuals from industry with experience in man14 ufacturing to serve for 1 or 2 years as instructors in man15 ufacturing at 2-year community and technical colleges in

16 the United States. In selecting fellows, the Director of the

17 National Science Foundation shall place special emphasis

18 on supporting individuals who not only have expertise and

19 practicable experience in manufacturing but who also will

20 work to foster cooperation between 2-year colleges and

21 nearby manufacturing firms.

22 SEC. 214. TOTAL QUALITY MANAGEMENT.

23 The Director of the National Science Foundation, in

24 consultation with the Secretary, the Under Secretary, and

25 the Director, may establish a program to develop innova26 tive curricula, courses, and materials for use by institu-
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1 tions of higher education for instruction in total quality

2 management and related management practices, in order

3 to help improve the productivity of United States industry.

4 TITLE III—CRITICAL

5 TECHNOLOGIES

6 Subtitle A—Benchmarking Science

7 and Technology

8 SEC. 301. BENCHMARKING UNITED STATES SCIENCE AND

9 TECHNOLOGY AGAINST FOREIGN CAPABILI10 TIES.

11 The Stevenson-Wydler Technology Innovation Act of

12 1980, as amended by this Act, is further amended by add13 ing at the end the following new title:

14 ‘‘TITLE IV—BENCHMARKING

15 SCIENCE AND TECHNOLOGY

16 ‘‘SEC. 401. FINDINGS AND PURPOSES.

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

18 strength in new technologies and as centers of technical

19 excellence have developed around the world, it has become

20 increasingly important to assess United States scientific

21 and technological capabilities relative to those of other

22 global competitors and to make this information available

23 to United States researchers and policymakers in govern24 ment and industry.
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1 ‘‘(b) PURPOSES.—The purposes of this title are to

2 conduct and coordinate the collection, evaluation, and dis3 semination of information on foreign science and tech4 nology, specifically information assessing foreign capabili5 ties relative to comparable United States capabilities.

6 ‘‘SEC. 402. PROGRAM RESPONSIBILITIES.

7 ‘‘(a) DEPARTMENT OF COMMERCE.—The Depart8 ment of Commerce shall be the lead agency of the Federal

9 Government in making available information for assessing

10 the comparative strength of United States scientific and

11 technological capabilities. The Secretary, acting through

12 the Under Secretary, shall—

13 ‘‘(1) act as a focal point within the Federal

14 Government for collection and dissemination to

15 United States industry of foreign process and prod16 uct research and technologies of importance to Unit17 ed States Government and industry, and of related

18 technology assessment activities already underway in

19 the Federal Government;

20 ‘‘(2) provide leadership in making sure the in21 formation and analyses are easily accessible in elec22 tronic form, and ensure, consistent with confidential23 ity and security considerations, that they will be

24 readily available through the clearinghouse to the
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1 outreach network created under section 303 of this

2 Act;

3 ‘‘(3) work, in coordination with the Federal Co4 ordinating Council for Science Engineering and

5 Technology, as appropriate, to streamline Federal

6 Government procedures for collecting, evaluating,

7 and disseminating information benchmarking foreign

8 scientific and technological information and to iden9 tify roadblocks to collection, evaluation, or dissemi10 nation of foreign science and technology information;

11 and

12 ‘‘(4) Conduct appropriate planning regarding

13 long-term collection, evaluation, dissemination, and

14 application of foreign science and technology infor15 mation.

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

17 and agencies shall assist the Secretary in carrying out this

18 title.

19 ‘‘(c) ESTABLISHMENT OF THE OFFICE OF TECH20 NOLOGY MONITORING AND ASSESSMENT.—The Secretary,

21 acting through the Under Secretary, shall establish an of22 fice within the Technology Administration to carry out

23 this title. Such office shall be known as the Office of Tech24 nology Monitoring and Assessment, and is authorized to—
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1 ‘‘(1) arrange for access to benchmarking infor2 mation, in electronic form or otherwise, by interested

3 parties;

4 ‘‘(2) direct and fund the collection of additional

5 information needed for benchmarking;

6 ‘‘(3) direct and fund analysis of foreign re7 search and development activities and technological

8 capabilities, particularly in those areas where the

9 United States is considered to be at par or lagging

10 foreign capabilities or where foreign capabilities are

11 projected to overtake those of the United States;

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

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

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

15 ‘‘(5) establish collaborative programs to actively

16 disseminate benchmarking information to policy, in17 dustrial, labor, educational, research, and other or18 ganizations, and provide a minority share of funding

19 necessary for such programs;

20 ‘‘(6) consult with private sector groups, as ap21 propriate, on the usefulness of available foreign sci22 entific and technological information and on the

23 need for additional information and assessment ac24 tivities and consult with other affected agencies to

25 promote consistent and useful collection, assessment,
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1 and analysis of foreign technological information;

2 and

3 ‘‘(7) establish and administer the fellowship

4 program described in subsection (d).

5 ‘‘(d) FELLOWSHIP PROGRAM.—(1) The Office of

6 Technology Monitoring and Assessment shall establish

7 and administer a fellowship program to support Tech8 nology Fellows to assist the Under Secretary in carrying

9 out activities under this title relating to those countries

10 that are major competitors of the United States in critical

11 technologies, and to identify opportunities for technology

12 transfer to the United States or technological collabora13 tion for United States industries.

14 ‘‘(2) Technology Fellows shall—

15 ‘‘(A) regularly report to the Office of Tech16 nology Monitoring and Assessment on work planned,

17 in progress, and accomplished; and

18 ‘‘(B) provide support to the Office of Tech19 nology Monitoring and Assessment as requested by

20 that Office.

21 ‘‘(3) Fellowships awarded under the program estab22 lished under this subsection shall—

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

24 ‘‘(B) include a stipend equivalent to comparable

25 wages in the engineering industry; and
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•HR 820 IH

1 ‘‘(C) include provisions for living and office ar2 rangements in the host country.

3 ‘‘(4) Only individuals who—

4 ‘‘(A) have at least a bachelors degree in engi5 neering or science; and

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

7 in manufacturing or technology development,

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

9 Subtitle B—Advanced Technology

10 Program

11 SEC. 321. DEVELOPMENT OF PROGRAM PLAN.

12 The Secretary, acting through the Under Secretary

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

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

15 for the expansion of the Advanced Technology Program

16 established under section 28 of the National Institute of

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

18 specific consideration given to—

19 (1) closer coordination and cooperation with the

20 Defense Advanced Research Projects Agency and

21 other Federal research and development agencies as

22 appropriate;

23 (2) establishment of staff positions that can be

24 filled by private sector industrial or technical experts

25 for a period of one to two years;
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1 (3) broadening of the scope of the program to

2 include and focus on as many critical technologies

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

4 Science and Technology Policy, Organization, and

5 Priorities Act of 1976 (42 U.S.C. 6683(d)) as is ap6 propriate; and

7 (4) changes that may be needed when annual

8 funds available for grants under the Program reach

9 levels of $200,000,000 and $500,000,000.

10 SEC. 322. LARGE SCALE RESEARCH AND DEVELOPMENT

11 CONSORTIA.

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

13 acting through the Director, shall establish a program for

14 the support of large-scale research and development con15 sortia.

16 (b) SELECTION PROCEDURES AND REQUIRE17 MENTS.—

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

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

20 to large-scale research and development consortia

21 under this section shall be carried out in accordance

22 with procedures and requirements applicable to joint

23 ventures described in section 28(b)(1) of the Na24 tional Institute of Standards and Technology Act

25 (15 U.S.C. 278n(b)(1)).
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1 (2) EXCEPTION.—Notwithstanding section

2 28(b)(1)(B)(ii) of the National Institute of Stand3 ards and Technology Act (15 U.S.C.

4 278n(b)(1)(B)(ii)), for purposes of awards made

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

6 large-scale research and development consortia may

7 be provided by the Federal Government for up to 7

8 years.

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

10 for selection under this section to large-scale research and

11 development consortia that would not be undertaken by

12 the private sector without a Federal investment of

13 $50,000,000 or more per year.

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

15 research and development consortia under this section, the

16 Secretary, acting through the Director, shall give priority

17 to consortia that best achieve the following goals:

18 (1) Significant contribution to broad economic

19 growth.

20 (2) Significant contribution to the national

21 quality of life.

22 (3) Significant contribution to environmental

23 sustainability.

24 (4) Promotion of private sector partnership

25 with Federal research and development activities.
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1 (5) Substantial improvement of the inter2 national competitiveness of United States industry.

3 (6) Involvement of several competitor firms in

4 the development of the key consortia technologies.

5 (7) Strengthening of the linkages between do6 mestic suppliers, systems developers, and end-users.

7 (8) Participation by domestic end-users from

8 several industrial sectors.

9 (9) Promotion of the diffusion of

10 nonproprietary information to United States indus11 try through strong links with organizations such as

12 trade and professional groups.

13 (e) INDEPENDENT TECHNICAL REVIEW.—The Sec14 retary, through the Director, shall provide for periodic

15 technical review of large-scale research and development

16 consortia receiving support under this section, by the Na17 tional Institute of Standards and Technology, other na18 tional laboratories, the Department of Commerce Tech19 nology Advisory Board established under section 401 of

20 this Act, or independent research organizations that are

21 not a participant in the large-scale research and develop22 ment consortium being reviewed. Such review shall be for

23 the purpose of determining progress toward the objectives

24 for which such large-scale research and development con25 sortium was formed. The Secretary, through the Director,
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1 shall transmit to the Committee on Science, Space, and

2 Technology of the House of Representatives and the Com3 mittee on Commerce, Science, and Transportation of the

4 Senate an annual status report summarizing significant

5 accomplishments in achieving those objectives.

6 (f) DEFINITION.—For purposes of this section, the

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

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

9 National Institute of Standards and Technology Act (15

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

11 (g) ANTITRUST.—The National Cooperative Research

12 Act of 1984 (15 U.S.C. 4301 et seq.) shall apply to large13 scale research and development consortia selected under

14 this section.

15 SEC. 323. TECHNICAL AMENDMENTS.

16 Section 28 of the National Institute of Standards and

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

18 (1) in subsection (b)(1)(B)(ii), by striking ‘‘pro19 vision of a minority share of the cost of such joint

20 ventures for up to 5 years’’ and inserting in lieu

21 thereof ‘‘the option of provision of either—

22 ‘‘(I) a minority share of the cost of

23 such joint ventures for up to 5 years; or
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1 ‘‘(II) only direct costs, and not indi2 rect costs, profits, or management fees, for

3 up to 5 years’’; and

4 (2) by adding at the end the following new sub5 section:

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

7 (d)(3), the Director may grant an extension of not to ex8 ceed 6 months beyond the deadlines established under

9 those subsections for joint venture and single applicant

10 awardees to expend Federal funds to complete their

11 projects, if such extension may be granted with no addi12 tional cost to the Federal Government.’’.

13 Subtitle C—Civilian Technology

14 Loan Program

15 SEC. 331. LOAN AND LOAN GUARANTEE AUTHORITY.

16 To the extent provided in appropriation Acts, the

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

18 or enter into agreements to make, loans and loan guaran19 tees, either directly or in cooperation with other lenders,

20 to small- and medium-sized qualified business concerns in

21 accordance with this subtitle.

22 SEC. 332. TERMS AND CONDITIONS.

23 Loans and loan guarantees made under section 331

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

25 and conditions as the Under Secretary may prescribe by
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1 regulation, and shall be subject to the following terms and

2 conditions:

3 (1) Loans awarded or guaranteed shall be for

4 sound financing of research, development, dem5 onstration, or utilization of critical technologies or

6 advanced technologies.

7 (2) Loans shall only be awarded or guaranteed

8 if the Under Secretary finds that—

9 (A) sufficient collateral is pledged; or

10 (B) the borrower is sufficiently financially

11 sound,

12 to reasonably ensure repayment.

13 (3) Loans awarded or guaranteed may not ex14 ceed 50 percent of total eligible project costs. For

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

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

17 regulation.

18 (4) The total principal amount of outstanding

19 loans awarded or guaranteed to a single borrower

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

21 (5) Loans awarded or guaranteed shall be sen22 ior to any other debt obligations of the borrower, ex23 cept to the extent that the Under Secretary consid24 ers necessary to accommodate the borrower’s ability

25 to raise sufficient debt or equity capital from non-
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1 Federal sources to pay the balance of eligible project

2 costs that are not covered by such loans.

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

4 awarded or guaranteed by the Federal Government

5 under this subtitle shall be at a rate determined by

6 the Secretary of the Treasury, at the time such loan

7 is made, to equal the then current average market

8 yield on outstanding debt obligations of the United

9 States with remaining periods to maturity com10 parable to the maturity of such loan, plus an addi11 tional charge of up to 1 percent applied by the

12 Under Secretary to cover expected defaults and rea13 sonable administrative costs of carrying out this sub14 title. For purposes of this section, the term ‘‘de15 fault’’ shall be defined by the Under Secretary by

16 regulation.

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

18 maturity of loans awarded or guaranteed under this

19 subtitle may not be less than 2 years or greater

20 than—

21 (A) 10 years; or

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

23 equipment, or other assets, as determined by

24 the Secretary of the Treasury, which have been

25 pledged as collateral for such loan,
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1 whichever is greater.

2 (8) The Under Secretary may extend the matu3 rity of or renew a loan or extend the guarantee of

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

5 only if such extension or renewal will aid in the or6 derly liquidation of such loan.

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

8 the Federal Government under this subtitle may be

9 deferred by the borrower, upon approval by the

10 Under Secretary, only to the extent that the bor11 rower has established to the satisfaction of the

12 Under Secretary that the borrower has not realized

13 sufficient earnings and returns of capital to make

14 such payment without incurring undue financial

15 hardship, and that there is a reasonable prospect

16 that such loan and interest thereon will be repaid.

17 (10) The Under Secretary may guarantee pay18 ment of 100 percent of principal and interest on a

19 loan made under section 331.

20 (11) The Under Secretary may establish,

21 charge, and regulate fees to cover loan origination

22 and servicing costs that are reasonable and nec23 essary.
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1 SEC. 333. TECHNICAL ASSISTANCE FOR LENDERS AND BOR2 ROWERS.

3 The Secretary, acting through the Under Secretary,

4 shall, upon request, provide technical assistance and serv5 ices, as appropriate and needed, to lenders and borrowers

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

7 borrowers have ready access to appropriate assistance

8 available under title III of the Stevenson-Wydler Tech9 nology Innovation Act of 1980, or under any other Act,

10 in order to aid such lenders and borrowers in achieving

11 the purposes described in section 332(1). The Secretary

12 may charge fees for technical assistance and services pro13 vided under this section in amounts sufficient to cover the

14 reasonable cost of such assistance and services. The Sec15 retary may waive such fees on a case-by-case basis. Fees

16 paid to the United States under this section shall be de17 posited in an account established by the Under Secretary

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

19 to the extent provided in advance in appropriations Acts.

20 SEC. 334. DEFINITIONS.

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

22 technologies’’, ‘‘critical technologies’’, and ‘‘qualified busi23 ness concern’’ have the meaning given such terms in sec24 tion 342 of this Act.
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1 Subtitle D—Civilian Technology

2 Development Program

3 SEC. 341. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Civilian Tech5 nology Development Act of 1993’’.

6 SEC. 342. DEFINITIONS.

7 For purposes of this subtitle—

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

9 technologies eligible for assistance under the Ad10 vanced Technology Program established under sec11 tion 28 of the National Institute of Standards and

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

13 (2) the term ‘‘articles’’ means articles of incor14 poration for an incorporated body, and the func15 tional equivalent, or other similar documents speci16 fied by the Under Secretary, for other business enti17 ties;

18 (3) the term ‘‘critical technologies’’ means tech19 nologies identified as critical technologies pursuant

20 to section 603(d) of the National Science and Tech21 nology Policy, Organization, and Priorities Act of

22 1976 (42 U.S.C. 6683(d));

23 (4) the term ‘‘Department’’ means the Depart24 ment of Commerce;
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1 (5) the term ‘‘executive agency’’ has the mean2 ing given such term in section 105 of title 5, United

3 States Code;

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

5 by the Under Secretary under section 345;

6 (7) the term ‘‘licensee’’ means a company li7 censed under section 345;

8 (8) the term ‘‘preferred securities’’ means pre9 ferred stock or a preferred limited partnership inter10 est or other similar security, as defined by the

11 Under Secretary by regulation;

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

13 paid-in capital and paid-in surplus, on hand or le14 gally committed to be provided, of a licensee orga15 nized as a corporation, or the partnership capital, on

16 hand or legally committed to be provided, of a li17 censee organized as an unincorporated partnership,

18 but does not include any funds—

19 (A) borrowed by the licensee from any

20 source;

21 (B) obtained from the sale of preferred se22 curities; or

23 (C) derived directly or indirectly from any

24 Federal source;
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1 (10) the term ‘‘qualified business concern’’

2 means a United States company described in section

3 28(d)(9)(B) of the National Institute Standards and

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

5 (A) the business of such company includes

6 the pursuit, under the Small Business Innova7 tion Research (SBIR) program, of applications

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

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

10 (B) the principal business of such company

11 is the development or application of a critical

12 technology;

13 (C) such company is eligible for assistance

14 under the Advanced Technology Program

15 (ATP) established under section 28 of the Na16 tional Institute of Standards and Technology

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

18 (D) such company is principally engaged in

19 the development or exploitation of inventions,

20 technological improvements, new processes, or

21 products not previously generally available

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

23 Internal Revenue Code of 1986);

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

25 District of Columbia, the Commonwealth of Puerto
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1 Rico, the Virgin Islands, Guam, American Samoa,

2 and the Commonwealth of the Northern Mariana Is3 lands, and any other territory or possession of the

4 United States;

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

6 a company licensed under section 345 in which a

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

8 percent investment interest in the private equity cap9 ital of such licensee;

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

11 means a company licensed under section 345 in

12 which a single university or consortium of univer13 sities has at least a 25 percent investment interest

14 in the private equity capital of such licensee; and

15 (14) the term ‘‘venture capital’’ means consid16 eration for such—

17 (A) common stock;

18 (B) preferred stock;

19 (C) subordinated debt with equity features

20 which may include equity warrants or rights to

21 convert into common stock and which provides

22 for interest payments contingent upon and lim23 ited to the extent of earnings; or

24 (D) other financing with subordination or

25 nonamortization characteristics,
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1 as the Under Secretary determines to be substan2 tially similar to equity financing, issued by a quali3 fied business concern.

4 SEC. 343. ESTABLISHMENT AND PURPOSE.

5 (a) ESTABLISHMENT.—There is established within

6 the Technology Administration of the Department of Com7 merce a national program to stimulate and supplement the

8 availability of long-term investment capital for the forma9 tion, development, and growth of United States business

10 concerns that are engaged primarily in the development

11 or application of critical or other advanced technologies.

12 The Secretary, through the Under Secretary, shall,

13 through such program, provide for the selection, licensing,

14 monitoring, and financial and technical support of profes15 sionally managed technology investment companies which

16 in turn shall provide financial, management, and technical

17 assistance to qualified business concerns, with preference

18 given to satisfying the seed and early-stage financing

19 needs of such concerns that are not being met by other

20 sources on reasonable terms.

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

22 (1) to contribute to United States economic

23 competitiveness, employment, and prosperity;
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1 (2) to promote the advancement, maturation,

2 and application of critical and other advanced tech3 nologies;

4 (3) to supplement and stimulate long-term in5 vestment in qualified business concerns; and

6 (4) to encourage and facilitate the formation

7 and growth of professionally managed technology in8 vestment companies that will give preference to sat9 isfying the capital needs of qualified business con10 cerns in the early stages of their development.

11 (c) RESPONSIBILITIES.—(1) In carrying out this sub12 title, the Secretary, acting through the Under Secretary,

13 and subject to the availability of appropriations, shall—

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

15 law, utilize the capabilities of other executive agen16 cies, as appropriate, to ensure the efficient and ef17 fective implementation of this subtitle;

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

19 to avoid duplication of effort by consolidating the

20 administration of the program established by this

21 subtitle with any other similar Federal program, and

22 as part of such consolidation may delegate adminis23 trative functions, as necessary and appropriate, to

24 another executive agency; and
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1 (C) consult with the Secretary of Energy on all

2 policy matters related to the Civilian Technology De3 velopment Program that deal with development or

4 utilization of energy technologies.

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

6 agencies shall assist the Under Secretary in carrying out

7 this subtitle.

8 (d) OFFICE OF TECHNOLOGY FINANCING.—There is

9 established an Office of Technology Financing in the

10 Technology Administration of the Department of Com11 merce to administer the program established under this

12 subtitle and the Civilian Technology Loan Program estab13 lished under subtitle C of this title and to conduct related

14 activities the Secretary may assign to such office.

15 SEC. 344. ADVISORY COMMITTEE.

16 (a) ESTABLISHMENT.—There is established a Civil17 ian Technology Development Advisory Committee (in this

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

19 (b) COMPOSITION.—The CTD Advisory Committee

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

21 Secretary from among private individuals who, because of

22 their experience and accomplishments in technology devel23 opment, maturation, and adoption, business development,

24 venture capital, finance, or other relevant areas, are excep25 tionally qualified to perform the duties of the CTD Advi-
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1 sory Committee. The Under Secretary shall designate 1

2 member to serve as chairman.

3 (c) DUTIES.—The duties of the CTD Advisory Com4 mittee shall include advising the Under Secretary on all

5 matters related to policy, planning, execution, and evalua6 tion of the program established under this subtitle.

7 (d) TERMINATION.—Section 14 of the Federal Advi8 sory Committee Act shall not apply to the CTD Advisory

9 Committee.

10 SEC. 345. ORGANIZATION AND LICENSING.

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

12 partnership, or State instrumentality organized and char13 tered or otherwise existing under State law for the purpose

14 of performing the functions and conducting the activities

15 contemplated under this subtitle, that possesses the pow16 ers, capabilities, and expertise reasonably necessary to

17 perform such functions and conduct such activities, may

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

19 manner as the Under Secretary may prescribe.

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

21 specify in general terms the objects for which the applicant

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

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

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

25 amount and classes of its shares of capital stock. Such
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1 articles may contain any other provisions not inconsistent

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

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

4 affairs. Such articles and any amendments thereto adopt5 ed from time to time shall be subject to the approval of

6 the Under Secretary.

7 (c) BUSINESS PLAN.—The business plan of any ap8 plicant shall specify in general terms—

9 (1) how the applicant proposes to achieve the

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

11 its business, and to fulfill the purposes and satisfy

12 the requirements of this subtitle;

13 (2) the board members or general partners and

14 the management and professional staff of the appli15 cant, and the professional training, experience, rep16 utation, and investment performance record, if any,

17 of each such individual, along with a description of

18 the applicant’s current and proposed management

19 structure;

20 (3) all current or committed private investors in

21 the applicant, together with the amount and convey22 ances associated with such investment, and appro23 priate background information on each private inves24 tor; and
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1 (4) such other information as the Under Sec2 retary may require.

3 Such business plan and any material amendments thereto

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

5 of the Under Secretary.

6 (d) APPROVAL OF ARTICLES AND BUSINESS PLAN;

7 LICENSING.—The articles and business plan of an appli8 cant for a license shall be forwarded to the Under Sec9 retary for consideration and approval or disapproval. In

10 determining whether to approve a prospective licensee’s

11 articles and business plan and permit it to operate under

12 the provisions of this subtitle, the Under Secretary shall

13 give due regard, among other things, to the general busi14 ness reputation, character, suitability, and demonstrated

15 ability, experience, and performance in the development,

16 growth, and financing of qualified business concerns, of

17 the proposed owners and management of the prospective

18 licensee, and the likelihood of successful operations of the

19 prospective licensee including adequate profitability and fi20 nancial soundness. After consideration of all relevant fac21 tors, if the Under Secretary approves the company’s arti22 cles and business plan and determines that the applicant

23 satisfies or will satisfy the requirements of this subtitle,

24 the Under Secretary may approve the company to operate
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1 under the provisions of this subtitle and issue the company

2 a license for such operation.

3 SEC. 346. CAPITAL AND MANAGEMENT REQUIREMENTS.

4 (a) CAPITAL.—(1) The private equity capital of a li5 censee shall be adequate to ensure a reasonable prospect

6 that the licensee will be operated soundly and profitably,

7 and managed actively and prudently in accordance with

8 its articles and business plan. Such private equity capital

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

10 of a State sponsored licensee or a university sponsored li11 censee, such private equity capital shall not be less than

12 $2,500,000. At the time of issuance of a license, not less

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

14 shall be available or committed to be available for new in15 vestment in accordance with this subtitle.

16 (2) Private and public pension funds may contribute

17 to the private equity capital of a licensee without restric18 tion as to the amount of such contribution.

19 (3) State and local government entities may contrib20 ute not more than 40 percent of the total private equity

21 capital of a licensee.

22 (4) The aggregate amount of shares in any such li23 censee or licensees which may be owned or controlled by

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

25 may be limited by the Under Secretary.
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1 (b) MANAGEMENT.—The management and oper2 ational control of a licensee shall be carried out by suitable

3 private individuals who possess the professional training,

4 experience, and capabilities reasonably necessary to

5 achieve the purposes of this subtitle.

6 SEC. 347. FINANCING FOR LICENSEES.

7 (a) AUTHORITY TO PURCHASE AND GUARANTEE

8 PREFERRED SECURITIES.—To encourage and facilitate

9 the formation and growth of licensees and qualified busi10 ness concerns, the Under Secretary may purchase or com11 mit to purchase nonvoting, nonparticipating preferred se12 curities with mandatory redemption issued by a licensee,

13 or guarantee, or commit to guarantee, the payment of 100

14 percent of the redemption price of and dividends on such

15 preferred securities, to the extent provided in appropria16 tions Acts, if the licensee has demonstrated to the satisfac17 tion of the Under Secretary that it is financially sound

18 and that it has complied with or will comply with the re19 quirements of this subtitle, the terms of its license, and

20 any rule, regulation, or order issued under this subtitle.

21 Such purchases and guarantees shall constitute direct

22 loans and loan guarantees within the meaning of para23 graphs (1) and (3) of section 502 of the Federal Credit

24 Reform Act of 1990, respectively. A trust or pool acting
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1 on behalf of the Under Secretary may purchase preferred

2 securities that are guaranteed under this subsection.

3 (b) TERMS AND CONDITIONS OF PREFERRED SECU4 RITIES.—(1) Guarantees and purchases of preferred secu5 rities, or commitments to make such guarantees and pur6 chases, under this section may be made on such terms and

7 conditions as the Under Secretary shall establish by regu8 lation or set forth in contract to ensure compliance with

9 this subtitle and to protect the interests of taxpayers and

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

11 purposes of this paragraph, the Under Secretary shall by

12 regulation define the term ‘‘default’’.

13 (2)(A) Except as provided in subparagraph (B), pre14 ferred securities issued under this section shall be senior

15 in priority for all purposes to all non-Federal equity inter16 ests in a licensee unless the Under Secretary, in the exer17 cise of reasonable investment prudence and in considering

18 the financial soundness of the licensee, determines other19 wise.

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

21 of universities, or of a State or instrumentality of a State,

22 in a licensee shall be equal in priority to Federal equity

23 interests in such licensee for all purposes unless the Under

24 Secretary, in the exercise of reasonable investment pru-
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1 dence and in considering the financial soundness of the

2 licensee, determines otherwise.

3 (3) Preferred securities issued under this section

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

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

6 percent of the original issue price plus any accrued and

7 unpaid dividends. In order to facilitate the orderly liquida8 tion of a licensee’s investments, redemption of such pre9 ferred securities may be extended by mutual consent for

10 no more than 5 years beyond such expiration date.

11 (4) Preferred securities issued under this section

12 shall pay dividends at a rate determined by the Secretary

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

14 current average market yield on outstanding marketable

15 debt obligations of the United States with remaining peri16 ods to maturity comparable to the time to required re17 demption of such preferred securities, plus such additional

18 charge, if any, toward covering expected defaults and rea19 sonable administrative costs of carrying out this subtitle

20 as the Under Secretary may determine to be reasonable

21 and appropriate. Such additional charge shall not exceed

22 2 percent.

23 (5) Dividends on preferred securities issued under

24 this section shall be cumulative and preferred and paid

25 out of net realized earnings and returns of capital avail-
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1 able for distribution, as defined by the Under Secretary

2 by regulation.

3 (6) The payment of dividends on preferred securities

4 issued under this section may be deferred by the issuer

5 until such time as, and to the extent that, the issuer real6 izes earnings and returns of capital available for distribu7 tion. Accumulated and unpaid dividends on such preferred

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

9 of redemption of the preferred securities and before any

10 distribution of net realized earnings and returns of capital

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

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

13 to preferred securities issued under this section to a party

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

15 deferral under this paragraph, the Under Secretary shall

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

17 to the holder of the preferred securities, its agents or as18 signs, or the appropriate central registration agent, if any.

19 The authority to make dividend payments provided in this

20 paragraph shall be limited to the extent of amounts pro21 vided in advance in appropriations Acts for such purposes.

22 (7) For purposes of this subsection, the term ‘‘divi23 dends’’ means dividends on preferred stock and returns

24 on preferred limited partnership interests or other similar
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1 securities, as defined by the Under Secretary by regula2 tion.

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

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

5 debentures, or certificates of indebtedness, plus the total

6 face amount of preferred securities purchased or guaran7 teed by the Under Secretary under subsection (a), issued

8 and outstanding from a licensee shall not exceed 200 per9 cent of the private equity capital of the licensee.

10 (2) The total face amount of preferred securities pur11 chased or guaranteed by the Under Secretary under sub12 section (a) and outstanding from a licensee or a combina13 tion of licensees which are commonly controlled, as defined

14 and determined by the Under Secretary, shall not exceed

15 $50,000,000.

16 (3)(A) If preferred securities issued under this sec17 tion are outstanding, then the issuing licensee shall be

18 subject to the following restrictions:

19 (i) The total principal amount of debt, as evi20 denced by notes, bonds, debentures, or certificates of

21 indebtedness, of a licensee issued and outstanding

22 may not exceed 50 percent of the private equity cap23 ital of the licensee.

24 (ii) The annual management expenses of a li25 censee shall not exceed an amount which the Under
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1 Secretary determines to be reasonable and cus2 tomary.

3 (iii) The aggregate amount of obligations and

4 securities acquired and for which commitments may

5 be issued by a licensee for any single qualified busi6 ness concern shall not exceed $2,000,000 or 20 per7 cent of the private equity capital of such licensee,

8 whichever is greater, unless the Under Secretary ap9 proves a greater amount.

10 (B) For purposes of this paragraph, the term ‘‘man11 agement expenses’’ includes expenses incurred in the nor12 mal course of operations, but shall not include the cost

13 of legal, accounting, and consulting services provided by

14 outside parties and by affiliates of the licensee which are

15 not normal practice in making and monitoring investments

16 consistent with the purposes of this subtitle.

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

18 issuing preferred securities under this section shall invest

19 or commit to invest—

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

21 preferred securities that are outstanding; plus

22 (B) an amount of its private equity capital

23 equal to 50 percent of the amount described in sub24 paragraph (A),
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1 in the venture capital of qualified business concerns in ac2 cordance with section 349.

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

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

5 stage financing, as defined by the Under Secretary by reg6 ulation. The Under Secretary may alter the percentage re7 quirement under this paragraph to the extent necessary,

8 in the determination of the Under Secretary, to achieve

9 the purposes of this subtitle and maintain prudent invest10 ment diversification.

11 (3) Proceeds to a licensee derived from preferred se12 curities issued under this section may be used by the is13 suer to redeem any preferred securities issued under this

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

15 provided in subsection (b)(3).

16 (4) Proceeds to a licensee derived from preferred se17 curities issued under this section that have not been in18 vested pursuant to paragraphs (1) and (2) or used for re19 demptions pursuant to paragraph (3) and are not reason20 ably needed for the operations of the licensee shall be in21 vested in direct obligations of, or obligations guaranteed

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

23 certificates of deposit maturing within one year or less,

24 issued by any institution the accounts of which are insured

25 by the Federal Deposit Insurance Corporation.
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1 (e) PROFIT DISTRIBUTION BY LICENSEES.—(1) Any

2 distribution of net realized earnings and returns of capital

3 made by a licensee that exceeds amounts required for the

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

5 rata to all investors entitled to such distributions. The

6 United States shall receive no funds under this paragraph.

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

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

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

10 accumulated and unpaid dividends owed on outstanding

11 preferred securities issued under this section and to satisfy

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

13 (B) For purposes of subparagraph (A), the redemp14 tion requirements of subsection (b)(3) shall be considered

15 to be satisfied if necessary and appropriate actions, as de16 termined by the Under Secretary, have been undertaken

17 by the licensee to ensure that such requirements will be

18 satisfied.

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

20 or as a corporation described in subchapter S of chapter

21 1 of subtitle A of the Internal Revenue Code of 1986 or

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

23 distribute to the partners or shareholders an amount equal

24 to the estimated amount of Federal, State, and local in25 come taxes due from such partners and shareholders on
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1 their share of undistributed taxable income for the current

2 taxable year before payments described in subparagraph

3 (A) are made.

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

5 Amounts received by the United States from the payment

6 of dividends and the redemption of preferred securities

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

8 States by a licensee pursuant to this subtitle, shall be de9 posited in an account established by the Under Secretary

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

11 to the extent provided in advance in appropriations Acts.

12 SEC. 348. ISSUANCE AND GUARANTEE OF TRUST CERTIFI13 CATES.

14 (a) AUTHORITY TO ISSUE TRUST CERTIFICATES.—

15 The Under Secretary is authorized to issue trust certifi16 cates representing ownership of all or a fractional part of

17 preferred securities issued by licensees and guaranteed by

18 the Under Secretary under this subtitle. Such trust certifi19 cates shall be based on and backed by a trust or pool ap20 proved by the Under Secretary and composed of preferred

21 securities and such other contractual obligations as the

22 Under Secretary may undertake to facilitate the sale of

23 such trust certificates.

24 (b) GUARANTEE OF TRUST CERTIFICATES.—The

25 Under Secretary is authorized, upon such terms and con-
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1 ditions as are deemed appropriate, to guarantee the timely

2 payment of the principal of and interest on trust certifi3 cates issued by the Under Secretary or his agent for pur4 poses of this section. Such guarantee shall be limited to

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

6 preferred securities, plus any related contractual obliga7 tions, which compose the trust or pool.

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

9 that preferred securities or contractual obligations in such

10 trust or pool are redeemed or extinguished, either volun11 tarily or involuntarily, the guarantee of timely payment

12 of principal and interest on the trust certificates shall be

13 reduced in proportion to the amount of redemption price

14 and dividends such redeemed preferred security or extin15 guished contractual obligation represents in the trust or

16 pool. Dividends or partnership profit distributions on such

17 preferred securities and related contractual obligations,

18 shall accrue and be guaranteed by the Under Secretary

19 only through the date of payment on the guarantee. Dur20 ing the term of the trust certificate, it may be called for

21 redemption, whether voluntary or involuntary, of all pre22 ferred securities residing in the pool.

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

24 a guarantee under this section that are reasonable and

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

2 Under Secretary pays a claim under a guarantee issued

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

4 satisfied by such payment.

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

6 preclude or limit the exercise by the Under Secretary of

7 ownership rights in the preferred securities residing in a

8 trust or pool against which trust certificates are issued.

9 (f) REGISTRATION AND INTERMEDIARY OPER10 ATIONS.—(1) The Under Secretary shall provide for a

11 central registration of all trust certificates sold pursuant

12 to this section. Such central registration shall include with

13 respect to each sale, identification of each licensee, the in14 terest rate or dividend rate paid by the licensee, commis15 sions, fees, or discounts paid to brokers and dealers in

16 trust certificates, identification of each purchaser of the

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

18 trust certificate, the interest rate paid on the trust certifi19 cate, the fees of any agent for carrying out the functions

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

21 as the Under Secretary deems appropriate.

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

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

24 the pooling and the central registration functions of this

25 section including, notwithstanding any other provision of
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1 law, maintenance on behalf of and under the direction of

2 the Under Secretary, such commercial bank accounts as

3 may be necessary to facilitate trusts or pools backed by

4 securities guaranteed or purchased under this subtitle,

5 and the issuance of trust certificates to facilitate such

6 poolings. Such agent or agents shall provide a fidelity

7 bond or insurance in such amounts as the Under Secretary

8 determines to be necessary to fully protect the interests

9 of the Federal Government.

10 (3) Prior to any sale, the Under Secretary shall re11 quire the seller to disclose to a purchaser of a trust certifi12 cate issued pursuant to this section, information on the

13 terms, conditions, and yield of such instrument.

14 SEC. 349. CAPITAL FOR QUALIFIED BUSINESS CONCERNS.

15 (a) VENTURE CAPITAL.—Each licensee may provide

16 venture capital to qualified business concerns, in such

17 manner and under such terms as the licensee may fix in

18 accordance with the regulations of the Under Secretary.

19 Venture capital provided to incorporated qualified busi20 ness concerns under this section may be provided directly

21 or in cooperation with other investors, incorporated or un22 incorporated, through agreements to participate on an im23 mediate basis.

24 (b) LIMITATION ON LOAN AUTHORITY.—A licensee

25 may not make a direct loan to a qualified business concern
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1 under this section which provides for repayment of such

2 loan more than 1 year after the loan is made, unless the

3 Under Secretary determines that to do so is necessary to

4 facilitate the orderly liquidation of the licensee’s invest5 ment.

6 SEC. 350. OPERATION.

7 (a) COOPERATION.—Wherever practicable the oper8 ations of a licensee, including the generation of business,

9 may be undertaken in cooperation with banks or other li10 censees, investors, or lenders, incorporated or unincor11 porated, and any servicing or initial investigation required

12 for loans or acquisitions of securities by the licensee under

13 the provisions of this subtitle may be handled through

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

15 fee basis. Any licensee may receive fees for services ren16 dered to such banks and other licensees, investors, and

17 lenders.

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

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

20 Federal Reserve System and of the Department of Com21 merce which are available for and useful to industrial and

22 commercial businesses, and may provide consulting and

23 advisory services on a fee basis and have on its staff per24 sons competent to provide such services. A licensee may
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1 not charge fees for such services that are provided to a

2 qualified business concern in which it has an investment.

3 SEC. 351. REGULATIONS; LIABILITY.

4 (a) REGULATIONS.—The Under Secretary is author5 ized to prescribe regulations governing the operations of

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

7 in accordance with the purposes of this subtitle. Regula8 tions to implement this subtitle shall be issued not later

9 than 180 days after the date of enactment of this Act.

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

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

12 liability on the United States with respect to any obliga13 tions entered into, or stocks issued, or commitments made,

14 by any licensee operating under the provisions of this sub15 title.

16 SEC. 352. TECHNICAL ASSISTANCE FOR LICENSEES AND

17 QUALIFIED BUSINESS CONCERNS.

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

19 upon request, provide technical assistance and services, as

20 appropriate and needed, to licensees and to qualified busi21 ness concerns receiving financial assistance under this

22 subtitle, and shall ensure that such qualified business con23 cerns have ready access to appropriate assistance available

24 under title III of the Stevenson-Wydler Technology Inno25 vation Act of 1980, or under any other Act, in order to
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1 aid such qualified business concerns in their development

2 or utilization of critical or other advanced technologies.

3 Technical assistance and services under this subsection

4 shall include providing licensees and qualified business

5 concerns with—

6 (1) an assessment of the technological and sci7 entific feasibility of a project, or an analysis of a

8 specific field of technical or scientific endeavor;

9 (2) improved access to technology developed by

10 the Institute and assistance in obtaining access to

11 technology developed by other Federal agencies and

12 laboratories;

13 (3) expert analysis of the economics of tech14 nology development undertaken by a qualified busi15 ness concern; and

16 (4) any other assistance or service that the

17 Under Secretary determines, after consultation with

18 licensees and qualified business concerns, is nec19 essary and appropriate to enhance prospects for suc20 cess and to reduce technical risk for licensees and

21 qualifed business concerns.

22 (b) FEES.—The Secretary may charge fees for serv23 ices and technical assistance provided under subsection (a)

24 in amounts sufficient to cover the reasonable cost of such
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1 services and assistance. The Secretary may waive fees es2 tablished under this subsection.

3 SEC. 353. ANNUAL AUDIT AND REPORT.

4 (a) REQUIREMENT.—The Under Secretary shall pre5 pare, in consultation with the advisory committee estab6 lished under section 344, and submit annually a report

7 to the Congress containing a full and detailed account of

8 operations under this subtitle. Such report shall include

9 an audit setting forth the amount, type, recipient, and

10 source of disbursements, receipts, and losses sustained by

11 the Federal Government as a result of such operations

12 during the preceding fiscal year and since inception of the

13 program, together with an assessment of progress made

14 in achieving the purposes of this subtitle, including signifi15 cant accomplishments.

16 (b) CONTENTS.—In the annual report submitted

17 under subsection (a), the Under Secretary shall also in18 clude full and detailed accounts relative to the following

19 matters:

20 (1) The Under Secretary’s plans to ensure the

21 provision of licensee financing to all areas of the

22 country and to all qualified business concerns, in23 cluding steps taken to accomplish that goal.

24 (2) Steps taken by the Under Secretary to

25 maximize recoupment of Federal Government funds
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1 incident to the inauguration and administration of

2 the licensee program, and to ensure compliance with

3 statutory and regulatory standards relating thereto.

4 (3) An accounting by the Treasury Department

5 with respect to tax revenues accruing to the Federal

6 Government from licensees, private investors in li7 censees, and business concerns receiving assistance

8 under this subtitle.

9 (4) Recommendations with respect to program

10 changes, statutory changes, and other matters, in11 cluding tax incentives to improve and facilitate the

12 operations of licensees and to encourage the use of

13 their financing facilities by qualified business con14 cerns.

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

16 (a) REPORTING REQUIREMENTS.—Each license is17 sued under this subtitle shall require a licensee with out18 standing preferred securities to provide the Under Sec19 retary such information, including companies financed,

20 disbursements made along with associated terms and con21 ditions, receipts, portfolio valuation at cost and at esti22 mated fair market value, and other financial statements,

23 that the Under Secretary may require to determine, in a

24 timely manner, compliance with this subtitle and regula-
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1 tions promulgated under this subtitle. Such reporting shall

2 be—

3 (1) except as otherwise provided in this sub4 section, consistent with the reporting practices and

5 standards of the venture capital industry;

6 (2) uniform for all licensees; and

7 (3) independently audited, at the expense of a

8 licensee, in accordance with generally accepted audit9 ing standards and submitted to the Under Secretary

10 no later than 60 days after the end of a licensee’s

11 fiscal year, with interim unaudited financial state12 ments provided to the Under Secretary no later than

13 45 days after the end of each 3-month period during

14 a licensee’s fiscal year.

15 The Under Secretary may exempt from making such re16 ports any licensee which is registered under the Invest17 ment Company Act of 1940 only to the extent necessary

18 to avoid duplication in reporting requirements.

19 (b) VALUATIONS.—The Under Secretary shall, by

20 regulation, establish guidelines for estimating the fair

21 market value of investments held by a licensee as required

22 under subsection (a). The board of directors of a corporate

23 licensee and the general partners of a partnership licensee

24 shall have the sole responsibility for making a good faith

25 determination of the fair market value of investments held
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1 by such licensee, based on guidelines established under

2 this subsection.

3 (c) INVESTIGATIONS.—The Secretary may undertake

4 investigations to determine whether a licensee or any other

5 person has engaged or is about to engage in any acts or

6 practices which constitute or will constitute a violation of

7 any provision of this subtitle, or of any rule, regulation,

8 or order issued under this subtitle. The Secretary shall

9 permit any person to file a statement in writing, under

10 oath or otherwise as the Secretary shall determine, as to

11 all the facts and circumstances concerning the matter to

12 be investigated. For the purpose of any investigation, the

13 Secretary is empowered to administer oaths and affirma14 tions, subpoena witnesses, compel their attendance, take

15 evidence, and require the production of any books, papers,

16 and documents which are relevant to the inquiry.

17 (d) EXAMINATIONS.—(1) Each licensee shall be sub18 ject to examinations made at the direction of the Under

19 Secretary by examiners selected or approved by, and under

20 the supervision of, the Under Secretary. The Under Sec21 retary may enter into contracts with private parties to per22 form such examinations. The cost of such examinations,

23 including the compensation of the examiners, may in the

24 discretion of the Under Secretary be assessed against the
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1 licensee examined and when so assessed shall be paid by

2 such licensee.

3 (2) Each licensee shall be examined at least every 2

4 years in such detail so as to determine whether or not it

5 has engaged in any violations of this subtitle.

6 (3) The Under Secretary may waive the examina7 tion—

8 (A) for up to one additional year if such a delay

9 would be appropriate, based upon the amount of de10 bentures and preferred securities being issued by the

11 licensee and its repayment record, the prior operat12 ing experience of the licensee, the contents and re13 sults of the last examination and the management

14 expertise of the licensee; or

15 (B) if it is a licensee whose operations have

16 been suspended while the licensee is involved in liti17 gation or is in receivership.

18 SEC. 355. REVOCATION AND SUSPENSION OF LICENSES;

19 CEASE AND DESIST ORDERS.

20 (a) GROUNDS FOR REVOCATION OR SUSPENSION.—

21 A license may be revoked or suspended by the Secretary—

22 (1) for willful or repeated violation of any provi23 sion of this subtitle or any rule, regulation, or order

24 issued thereunder; or
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1 (2) if the licensee no longer serves the purposes

2 for which it was granted a license.

3 (b) CEASE AND DESIST ORDERS.—Where a licensee

4 or any other person has not complied with any provision

5 of this subtitle, or of any rule, regulation, or order issued

6 thereunder, or is engaging or is about to engage in any

7 acts or practices which constitute or will constitute a viola8 tion of such provision, rule, regulation, or order, the Sec9 retary may order such licensee or other person to cease

10 and desist from such action or failure to act. The Sec11 retary may further order such licensee or other person to

12 take such action or to refrain from such action as the Sec13 retary considers necessary to ensure compliance with such

14 provisions, rules, regulations, or orders. The Secretary

15 may also suspend the license of a licensee, against whom

16 an order has been issued, until such licensee complies with

17 such order.

18 (c) PROCEDURES.—Before revoking or suspending a

19 license pursuant to subsection (a) or issuing a cease and

20 desist order pursuant to subsection (b), the Secretary shall

21 serve upon the licensee and any other person involved an

22 order to show cause why an order revoking or suspending

23 the license or a cease and desist order should not be is24 sued. If the Secretary, after an opportunity for agency

25 hearing, determines on the record that an order revoking
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1 or suspending the license or a cease and desist order

2 should issue, the Secretary shall promptly issue such

3 order.

4 (d) SUBPOENAS.—The Secretary may require by sub5 poenas the attendance and testimony of witnesses and the

6 production of all books, papers, and documents relating

7 to the hearing from any place in the United States.

8 (e) ENFORCEMENT.—If any licensee or other person

9 against which or against whom an order is issued under

10 this section fails to obey the order, the Secretary may

11 apply to the United States court of appeals, within the

12 circuit where the licensee has its principal place of busi13 ness, for the enforcement of the order.

14 SEC. 356. INJUNCTIONS AND OTHER ORDERS.

15 (a) IN GENERAL.—Whenever, in the judgment of the

16 Secretary, a licensee or any other person has engaged or

17 is about to engage in any acts or practices which con18 stitute or will constitute a violation of any provision of

19 this subtitle, or of any rule, regulation, or order issued

20 under this subtitle, the Secretary may make application

21 to the proper district court of the United States or a

22 United States court of any place subject to the jurisdiction

23 of the United States for an order enjoining such acts or

24 practices, or for an order enforcing compliance with such

25 provision, rule, regulation, or order, and such courts shall
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1 have jurisdiction of such actions and, upon a showing by

2 the Secretary that such licensee or other person has en3 gaged or is about to engage in any such acts or practices,

4 a permanent or temporary injunction shall be granted

5 without bond.

6 (b) TRUSTEESHIP OR RECEIVERSHIP.—Whenever it

7 is necessary in order to achieve the purposes of an injunc8 tion or other order under subsection (a), the court may

9 seize the assets of a licensee and appoint a trustee or re10 ceiver to hold or administer under the direction of the

11 court such assets. The Under Secretary shall have author12 ity to act as trustee or receiver of the licensee. Upon re13 quest by the Secretary, the court may appoint the Under

14 Secretary to act in such capacity unless the court deems

15 such appointment inequitable or otherwise inappropriate

16 by reason of the special circumstances involved.

17 SEC. 357. CONFLICTS OF INTEREST.

18 For the purpose of controlling conflicts of interest

19 which may be detrimental to qualified business concerns,

20 to licensees, to the shareholders or partners of either, or

21 to the purposes of this subtitle, the Under Secretary shall

22 adopt regulations to govern transactions with any officer,

23 director, shareholder, or partner of any licensee, or with

24 any person or concern, in which any interest, direct or in25 direct, financial or otherwise, is held by any officer, direc-
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1 tor, shareholder, or partner of (1) any licensee, or (2) any

2 person or concern with an interest, direct or indirect, fi3 nancial or otherwise, in any licensee. Such regulations

4 shall include appropriate requirements for public disclo5 sure (including disclosure in the locality most directly af6 fected by the transaction) necessary to the purposes of this

7 section.

8 SEC. 358. REMOVAL OR SUSPENSION OF DIRECTORS AND

9 OFFICERS.

10 (a) GROUNDS.—The Secretary, after an opportunity

11 for agency hearing, may serve upon any director or officer

12 of a licensee a written notice of its intention to remove

13 such director or officer from office, temporarily or perma14 nently, whenever in the opinion of the Secretary such di15 rector or officer—

16 (1) has willfully and knowingly—

17 (A) committed any substantial violation of

18 this subtitle or any rule, regulation, or order is19 sued under this subtitle; or

20 (B) committed or engaged in any act,

21 omission, or practice which constitutes a sub22 stantial breach of his fiduciary duty as such di23 rector or officer,
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1 and that such violation or such breach of fiduciary

2 duty is one involving personal dishonesty on the part

3 of such director or officer; or

4 (2) has been charged in any information, indict5 ment, or complaint, authorized by a United States

6 attorney but not yet having reached final disposition,

7 with the commission of or participation in a felony

8 involving dishonesty or breach of trust.

9 (b) HEARING.—A hearing under this section shall be

10 on the record and shall be held in the Federal judicial dis11 trict or in the territory in which the principal office of

12 the licensee is located unless the party afforded the hear13 ing consents to another place. A hearing under this section

14 shall be fixed for a date not earlier than 30 days nor later

15 than 60 days after the date of service of such notice, un16 less an earlier or a later date is set by the Secretary at

17 the request of (1) such director or officer and for good

18 cause shown, or (2) the Attorney General of the United

19 States. Unless such director or officer shall appear at the

20 hearing in person or by a duly authorized representative,

21 he shall be deemed to have consented to the issuance of

22 an order of such removal.

23 SEC. 359. VIOLATIONS.

24 (a) PARTICIPATION.—Whenever a licensee commits a

25 violation of this subtitle, or any rule, regulation, or order
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1 issued under this subtitle, such violation shall be deemed

2 to be also a violation on the part of any person who, di3 rectly or indirectly, authorizes, orders, participates in, or

4 causes, brings about, counsels, aids, or abets in the com5 mission of such violation.

6 (b) BREACH OF FIDUCIARY DUTY.—It shall be a vio7 lation of this subtitle for any officer, director, employee,

8 agent, or other participant in the management or conduct

9 of the affairs of a licensee to engage in any act or practice,

10 or to omit any act, in breach of his fiduciary duty as such

11 officer, director, employee, agent, or participant, if, as a

12 result thereof, the licensee has suffered or is in imminent

13 danger of suffering financial loss or other damage.

14 (c) DISQUALIFICATION.—Except with the written

15 consent of the Secretary, it shall be a violation of this sub16 title for any person to take office, or to continue to serve,

17 as an officer, director, or employee of a licensee, or to be18 come or continue to serve as an agent or participant in

19 the conduct of the affairs or management of a licensee,

20 if such person—

21 (1) has been convicted of a felony, or any other

22 criminal offense involving dishonesty or breach of

23 trust; or

24 (2) has been found civilly liable in damages, or

25 has been permanently or temporarily enjoined by an
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1 order, judgment, or decree of a court of competent

2 jurisdiction, by reason of any act or practice involv3 ing fraud or breach of trust.

4 SEC. 360. CIVIL PENALTIES.

5 Any person who is found by the Secretary, after no6 tice and opportunity to be heard on the record in accord7 ance with section 554 of title 5, United States Code, to

8 have committed a violation of this subtitle or any rule,

9 regulation, or order issued under this subtitle shall be lia10 ble to the United States for a civil penalty of not more

11 than $1,000 for each violation. Each day of a continuing

12 violation shall constitute a separate violation. The amount

13 of such civil penalty shall be assessed by the Secretary

14 by written notice. The Secretary may compromise, modify,

15 or remit, with or without conditions, any civil penalty

16 which is subject to imposition or which has been imposed

17 under this section.

18 SEC. 361. ANTITRUST SAVINGS CLAUSE.

19 This subtitle shall not be construed to modify, impair,

20 or supersede the operation of the antitrust laws. For pur21 poses of this section, the term ‘‘antitrust laws’’ has the

22 meaning given it in subsection (a) of the first section of

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

24 includes the Act of June 19, 1936 (49 Stat. 1526; 15

25 U.S.C. 13 et seq.), commonly known as the Robinson Pat-
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1 man Act, and section 5 of the Federal Trade Commission

2 Act (15 U.S.C. 45) to the extent that such section 5 ap3 plies to unfair methods of competition.

4 TITLE IV—MISCELLANEOUS

5 SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY AD6 VISORY BOARD.

7 (a) ESTABLISHMENT.—There is established a De8 partment of Commerce Technology Advisory Board (in

9 this section referred to as the ‘‘Advisory Board’’) to assist

10 the Technology Administration in the performance of its

11 functions.

12 (b) COMPOSITION.—The Advisory Board shall be

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

14 Secretary from among individuals who, because of their

15 experience and accomplishments are exceptionally quali16 fied to provide advice to the Under Secretary on the plans,

17 programs, and policy of the Technology Administration.

18 The Under Secretary shall designate 1 member to chair

19 the Advisory Board. Membership of the Advisory Board

20 shall include representatives of—

21 (1) United States small businesses;

22 (2) other United States manufacturers;

23 (3) research universities and independent re24 search institutes;
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1 (4) State and local government agencies in2 volved in technology extension;

3 (5) national laboratories;

4 (6) industrial, worker, and professional organi5 zations;

6 (7) financial organizations; and

7 (8) computing and communications equipment

8 and services providers.

9 (c) DUTIES.—The duties of the Advisory Board shall

10 include advising the Secretary, the Under Secretary, and

11 the Director regarding—

12 (1) the development of policies and options for

13 implementation that the Advisory Board considers

14 essential to technology creation, development, and

15 adoption, including policies that would benefit small

16 businesses;

17 (2) the development and rapid application of

18 critical and other advanced technologies, including

19 advanced manufacturing technologies;

20 (3) the development of computer and commu21 nications support services for advanced manufactur22 ing; and

23 (4) the planning, execution, and evaluation of

24 programs under the authority of the Technology Ad25 ministration.
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1 (d) MEETINGS.—(1) The chairman shall call the first

2 meeting of the Advisory Board not later than 90 days

3 after the date of enactment of this Act.

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

5 6 months, and at the call of the Under Secretary.

6 (e) TRAVEL EXPENSES.—Members of the Advisory

7 Board, other than full-time employees of the United

8 States, shall be allowed travel expenses in accordance with

9 subchapter I of chapter 57 of title 5, United States Code,

10 while engaged in the business of the Advisory Board.

11 (f) CONSULTATION.—In carrying out this section, the

12 Under Secretary shall consult with other agencies, as ap13 propriate.

14 (g) TERMINATION.—Section 14 of the Federal Advi15 sory Committee Act shall not apply to the Advisory Board.

16 SEC. 402. INTERNATIONAL STANDARDIZATION.

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

18 (1) private sector consensus standards are es19 sential to the timely development of competitive

20 products;

21 (2) Federal Government contribution of re22 sources, more active participation in the voluntary

23 standards process in the United States, and assist24 ance, where appropriate, through government to gov25 ernment negotiations, can increase the quality of
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1 United States standards, increase their compatibility

2 with the standards of other countries, and ease ac3 cess of United States-made products to foreign mar4 kets; and

5 (3) the Federal Government, working in co6 operation with private sector organizations including

7 trade associations, engineering societies, and tech8 nical bodies, can effectively promote United States

9 Government use of United States consensus stand10 ards and, where appropriate, the adoption and

11 United States Government use of international

12 standards.

13 (b) STANDARD PILOT PROGRAM.—Section 104(e) of

14 the American Technology Preeminence Act of 1991 is

15 amended—

16 (1) by inserting ‘‘(1)’’ before ‘‘Pursuant to

17 the’’; and

18 (2) by adding at the end the following new

19 paragraph:

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

21 expand the program established under section 112 of the

22 National Institute of Standards and Technology Author23 ization Act for Fiscal Year 1989 (15 U.S.C. 272 note)

24 by extending the existing program and by entering into

25 additional contracts with non-Federal organizations rep-
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1 resenting United States companies, as such term is de2 fined in section 28(d)(9)(B) of the National Institute of

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

4 278n(d)(9)(B)). Such contracts shall require cost sharing

5 between Federal and non-Federal sources for such pur6 poses. In awarding such contracts, the Institute shall seek

7 to promote and support the dissemination of United

8 States technical standards to additional foreign countries,

9 in cooperation with governmental bodies, private organiza10 tions including standards setting organizations and indus11 try, and multinational institutions that promote economic

12 development. The organizations receiving such contracts

13 may establish training programs to bring to the United

14 States foreign standards experts for the purpose of receiv15 ing in-depth training in the United States standards sys16 tem.’’.

17 (c) REPORT ON GLOBAL STANDARDS.—The Sec18 retary, in consultation with the Institute and the Depart19 ment of Commerce Technology Advisory Board established

20 under section 401 of this Act, shall submit to the Congress

21 a report describing the appropriate roles of the Depart22 ment of Commerce in aid to United States companies in

23 achieving conformity assessment and accreditation and

24 otherwise qualifying their products in foreign markets,

25 and in the development and promulgation of domestic and
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1 global product and quality standards, including a discus2 sion of the extent to which each of the policy options pro3 vided in such Office of Technology Assessment report con4 tributes to meeting the goals of—

5 (1) increasing the international adoption of

6 standards beneficial to United States industries; and

7 (2) improving the coordination of United States

8 representation to international standards setting

9 bodies.

10 (d) FEDERAL GOVERNMENT ROLE.—Section 508(a)

11 of the American Technology Preeminence Act of 1991 is

12 amended by adding at the end the following new para13 graph:

14 ‘‘(6) The appropriate role of the Federal Gov15 ernment in aid to United States companies in

16 achieving conformity assessment and accreditation

17 and otherwise qualifying their products in foreign

18 markets, and in the development and promulgation

19 of domestic and global product and quality stand20 ards, including a discussion of the extent to which

21 each of the policy options provided in the Office of

22 Technology Assessment report on global standards

23 contributes to meeting the goal of improving the co24 ordination of United States representation to inter25 national standards-setting bodies.
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1 SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.

2 (a) Section 108(c)(3) of the Stevenson-Wydler Tech3 nology Innovation Act of 1980, as so redesignated by sec4 tion 206(b)(4) of this Act, is amended to read as follows:

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

6 subcategory if there are no qualifying enterprises in that

7 category or subcategory.’’.

8 (b)(1) Section 108(c)(1) of the Stevenson-Wydler

9 Technology Innovation Act of 1980, as so redesignated by

10 section 206(b)(4) of this Act, is amended by adding at

11 the end the following new subparagraph:

12 ‘‘(D) Educational institutions.’’.

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

14 this Act, the Secretary shall submit to the Congress a re15 port containing—

16 (i) criteria for qualification for a Malcolm

17 Baldrige National Quality Award by various classes

18 of educational institutions;

19 (ii) criteria for the evaluation of applications for

20 such awards under section 108(d)(1) of the Steven21 son-Wydler Technology Innovation Act of 1980, as

22 so redesignated by section 206(b)(4) of this Act; and

23 (iii) a plan for funding awards described in

24 clause (i).

25 (B) In preparing the report required under subpara26 graph (A), the Secretary shall consult with the National
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1 Science Foundation and other public and private entities

2 with appropriate expertise, and shall provide for public no3 tice and comment.

4 (C) The Secretary shall not accept applications for

5 awards described in subparagraph (A)(i) until after the

6 report required under subparagraph (A) is submitted to

7 the Congress.

8 SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT

9 AGREEMENTS.

10 Section 202(d)(1) of the Stevenson-Wydler Tech11 nology Innovation Act of 1980 (15 U.S.C. 3710a(d)(1)),

12 as redesignated by section 206(b)(6) of this Act, is amend13 ed by inserting ‘‘(including both real and personal prop14 erty)’’ after ‘‘or other resources’’ both places it appears.

15 SEC. 405. CLEARINGHOUSE ON STATE AND LOCAL INITIA16 TIVES.

17 Section 102(a) of the Stevenson-Wydler Technology

18 Innovation Act of 1980, as so redesignated by section

19 206(b)(2) of this Act, is amended by striking ‘‘Office of

20 Productivity, Technology, and Innovation’’ and inserting

21 in lieu thereof ‘‘Institute’’.
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1 SEC. 406. COMPETITIVENESS ASSESSMENTS AND EVALUA2 TIONS.

3 Section 101(e) of the Stevenson-Wydler Technology

4 Innovation Act of 1980, as so redesignated by section

5 206(b)(2) of this Act, is amended to read as follows:

6 ‘‘(e) COMPETITIVENESS ASSESSMENTS AND EVALUA7 TIONS.—(1) The Secretary, through the Under Secretary,

8 shall—

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

10 analyses to advance knowledge of the ways in which

11 the economic competitiveness of United States in12 dustry can be enhanced through Federal programs

13 established under the National Competitiveness Act

14 of 1993 or the amendments made by that Act; and

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

16 Federal technology programs established or ex17 panded under the National Competitiveness Act of

18 1993 or the amendments made by that Act in order

19 to judge their effectiveness and make recommenda20 tions to improve their contribution to United States

21 competitiveness.

22 ‘‘(2) All executive departments and agencies shall as23 sist the Secretary in carrying out this section as appro24 priate.

25 ‘‘(3) Nothing in this section shall authorize the re26 lease of information to, or the use of information by, the
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1 Secretary or Under Secretary in a manner inconsistent

2 with law or any procedure established pursuant thereto.

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

4 personnel and may provide such services, with or without

5 reimbursement, as the Secretary may request to assist in

6 carrying out the activities required under this section.’’.

7 SEC. 407. STUDY OF SEMICONDUCTOR LITHOGRAPHY

8 TECHNOLOGIES.

9 Within 9 months after the date of enactment of this

10 Act, the Critical Technologies Institute (in this section re11 ferred to as the ‘‘Institute’’) established under section 822

12 of the National Defense Authorization Act for Fiscal Year

13 1991 shall, after consultation with the private sector and

14 appropriate officials from other Federal agencies, submit

15 to Congress a report on advanced lithography technologies

16 for the production of semiconductor devices. The report

17 shall include the Institute’s evaluation of the likely tech18 nical and economic advantages and disadvantages of each

19 such technology, an analysis of current private and Gov20 ernment research to develop each such technology, and

21 any recommendations the Institute may have regarding

22 future Federal support for research and development in

23 advanced lithography.
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1 SEC. 408. AMERICAN WORKFORCE QUALITY PARTNER2 SHIPS.

3 Title III of the Stevenson-Wydler Technology Innova4 tion Act of 1980, as added by title II of this Act, is further

5 amended by adding at the end the following new section:

6 ‘‘SEC. 305. AMERICAN WORKFORCE QUALITY PARTNER7 SHIPS.

8 ‘‘(a) PROGRAM AUTHORIZED.—The Secretary may

9 make grants to eligible applicants having applications ap10 proved under this section to establish and operate Amer11 ican workforce quality partnership programs in accord12 ance with the provisions of this section. The Secretary

13 shall award grants on a competitive basis to pay the Fed14 eral share for American workforce quality partnership pro15 grams to establish workforce training consortia between

16 industry and institutions of higher education.

17 ‘‘(b) GRANT PERIOD.—Grants awarded under this

18 section may be for a period of 5 years.

19 ‘‘(c) GENERAL AUTHORITY.—Each grant recipient

20 shall use amounts provided under the grant to develop and

21 operate an American workforce quality partnership pro22 gram.

23 ‘‘(d) CONTENTS OF PROGRAM.—An American

24 workforce quality partnership program shall establish

25 partnerships between—
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1 ‘‘(1) one or more technology-based or manufac2 turing sector firms, in conjunction with a labor orga3 nization where available or worker representative

4 group or employee representatives; and

5 ‘‘(2) a local community or technical college or

6 other appropriate institutions of higher education, or

7 a vocational training institution or consortium of

8 such education institutions,

9 to train the employees of the industrial partners through

10 both workplace-based and classroom-based programs of

11 training.

12 ‘‘(e) FEDERAL SHARE.—The Federal share of the

13 cost of an American workforce quality partnership pro14 gram may not exceed 50 percent of the total cost of the

15 program. The non-Federal share of such costs may be pro16 vided in-cash or in-kind, fairly valued. The total contribu17 tion of the proposed partnership should reflect a substan18 tial contribution on the part of the industrial partners and

19 appropriate contributions of the education partners, local

20 or State governments, and other appropriate entities.

21 ‘‘(f) APPLICATIONS.—

22 ‘‘(1) IN GENERAL.—Each eligible applicant that

23 desires to receive a grant under this section shall

24 submit an application to the Secretary at such time

25 and in such manner as the Secretary shall prescribe.
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1 ‘‘(2) PLAN.—Each application submitted under

2 this subsection shall contain a plan for the develop3 ment and implementation of an American workforce

4 quality partnership program under this section.

5 Such plan shall—

6 ‘‘(A) show a demonstrated commitment, on

7 the part of the industrial partners, to adopt

8 total quality management strategies or other

9 plausible strategies to renew its competitive

10 edge;

11 ‘‘(B) demonstrate the need for Federal re12 sources because of the long-term nature and

13 risk of such an investment, the inability to fi14 nance such ventures because of the high cost of

15 capitalization, intense competition from foreign

16 industries, or such other appropriate reasons as

17 may limit the industrial partners’ ability to

18 launch programs where worker training and de19 velopment is a substantial component;

20 ‘‘(C) demonstrate long-term benefit for all

21 partners and the local economy, through an en22 hanced competitive position of the industrial

23 partners, substantial benefits for regional em24 ployment, and the ability of the education part25 ners to further their capabilities to educate and
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1 train other nonpartnership-affiliated individuals

2 wishing to obtain or upgrade technical, techno3 logical, industrial management and leadership,

4 or other industrial skills;

5 ‘‘(D) make full, appropriate, and innova6 tive use of industrial and higher education re7 sources and other local resources such as facili8 ties, equipment, personnel exchanges, experts,

9 or consultants;

10 ‘‘(E) provide for the establishment of an

11 advisory board in accordance with subsection

12 (h);

13 ‘‘(F) include an explanation of the indus14 trial partners’ plans to adopt new competitive

15 strategies and how the training partnership aids

16 that effort; and

17 ‘‘(G) include assurances that the eligible

18 entity will maintain its aggregate expenditures

19 from all other sources for employee training at

20 or above the average level of such expenditures

21 in the 2 fiscal years preceding the date of en22 actment of this section.

23 ‘‘(3) APPROVAL.—

24 ‘‘(A) IN GENERAL.—The Secretary shall

25 approve applications based on their potential to
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1 create an effective American workforce quality

2 partnership program in accordance with this

3 section.

4 ‘‘(B) CRITERIA.—In reviewing grant appli5 cations, the Secretary shall give significant con6 sideration to the following criteria:

7 ‘‘(i) Saliency of argument for requir8 ing a Federal investment.

9 ‘‘(ii) Commitment of partnership to

10 continue operation after the termination of

11 Federal funding.

12 ‘‘(iii) The likelihood that the training

13 will lead to long-term competitiveness of

14 the industrial partners and contribute sig15 nificantly to economic growth.

16 ‘‘(iv) The likelihood that the partner17 ship will benefit the education mission of

18 the education partners in ways outside of

19 the scope of the partnership, such as devel20 oping the capability to train other

21 nonpartnership-affiliated individuals in

22 similar skills.

23 ‘‘(C) PRIORITY CONSIDERATION.—The

24 Secretary shall give priority consideration to in25 dustries which are threatened by intense foreign
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1 competition important to the long-term national

2 economic or military security of the United

3 States and industries which are critical in ena4 bling other United States industries to maintain

5 a healthy competitive position. In addition, the

6 Secretary shall give priority to applicants in

7 areas of high poverty and unemployment.

8 ‘‘(g) USE OF FUNDS.—

9 ‘‘(1) APPROVED USES.—Federal funds may be

10 used for—

11 ‘‘(A) the direct costs of workplace-based

12 and classroom-based training in advanced tech13 nical, technological, and industrial management,

14 skills, and training for the implementation of

15 total quality management strategies, or other

16 competitiveness strategies, contained in the ap17 plicant’s plan submitted under subsection

18 (f)(2)(F);

19 ‘‘(B) the purchase or lease of equipment or

20 other materials for the purpose of instruction to

21 aid in training;

22 ‘‘(C) the development of in-house curricula

23 or coursework or other training-related pro24 grams, including the training of teachers and
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1 other eligible participants to utilize such curric2 ula or coursework; and

3 ‘‘(D) reasonable administrative expenses

4 and other indirect costs of operating the part5 nership which may not exceed 10 percent of the

6 total cost of the program.

7 ‘‘(2) LIMITATIONS.—Federal funds may not be

8 used for nontraining related costs of adopting new

9 competitive strategies including the replacement of

10 manufacturing equipment, product redesign and

11 manufacturing facility construction costs, or salary

12 compensation of the partners’ employees. Grants

13 shall not be made under this section for programs

14 that will impair any existing program, contract, or

15 agreement without the written concurrence of the

16 parties to such program, contract, or agreement.

17 ‘‘(h) ADVISORY BOARD.—

18 ‘‘(1) Each partnership shall establish an advi19 sory board which shall include equal representation

20 from each of the following categories:

21 ‘‘(A) Multiple organizational levels of the

22 industrial partners.

23 ‘‘(B) The education partners.
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1 ‘‘(C) Labor organization representatives

2 where available, worker representative groups,

3 or employee representatives.

4 ‘‘(2) The advisory board shall—

5 ‘‘(A) advise the partnership on the general

6 direction and policy of the partnership including

7 training, instruction, and other related issues;

8 ‘‘(B) report to the Secretary after the sec9 ond and fourth year of the program, on the

10 progress and status of the partnership, includ11 ing its strengths, weaknesses, and new direc12 tions, the number of individuals served, types of

13 services provided, and an outline of how the

14 program can be integrated into the existing

15 training infrastructure in place in other Federal

16 agencies and departments; and

17 ‘‘(C) assist in the revision of the plans

18 (submitted with the application under sub19 section (f)(2)(F)) and include revised plans as

20 necessary in the reports required under sub21 paragraph (B).’’.

22 SEC. 409. SEVERABILITY.

23 If any provision of this Act or the amendments made

24 by this Act, or the application thereof to any person or

25 circumstance, is held invalid, the remainder of this Act
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1 and the amendments made by this Act, and the applica2 tion thereof to other persons or circumstances, shall not

3 be affected thereby.

4 TITLE V—AUTHORIZATIONS OF

5 APPROPRIATIONS

6 SEC. 501. TECHNOLOGY ADMINISTRATION.

7 There are authorized to be appropriated to the Sec8 retary, to carry out the activities of the Under Secretary

9 and the Assistant Secretary of Commerce for Technology

10 Policy, in addition to any other amounts authorized for

11 such purposes—

12 (1) for the Office of the Under Secretary,

13 $5,000,000 for fiscal year 1994 and $8,000,000 for

14 fiscal year 1995;

15 (2) for Technology Policy, $5,000,000 for fiscal

16 year 1994 and $6,000,000 for fiscal year 1995;

17 (3) for Japanese Technical Literature,

18 $2,000,000 for fiscal year 1994 and $3,000,000 for

19 fiscal year 1995; and

20 (4) for competitiveness assessments and evalua21 tions under section 101(e) of the Stevenson-Wydler

22 Technology Innovation Act of 1980, as so redesig23 nated by section 206(b)(2) of this Act, $1,000,000

24 for fiscal year 1994 and $2,000,000 for fiscal year

25 1995.
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1 SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECH2 NOLOGY.

3 (a) INTRAMURAL SCIENTIFIC AND TECHNICAL RE4 SEARCH AND SERVICES.—(1) There are authorized to be

5 appropriated to the Secretary, to carry out the intramural

6 scientific and technical research and services activities of

7 the Institute, $250,000,000 for fiscal year 1994 and

8 $300,000,000 for fiscal year 1995.

9 (2) Of the amounts authorized under paragraph

10 (1)—

11 (A) $1,000,000 for fiscal year 1994 and

12 $1,000,000 for fiscal year 1995 are authorized only

13 for the evaluation of nonenergy-related inventions;

14 (B) $9,000,000 for fiscal year 1994 and

15 $10,000,000 for fiscal year 1995 are authorized only

16 for the technical competence fund; and

17 (C) $5,000,000 for fiscal year 1994 and

18 $5,000,000 for fiscal year 1995 are authorized only

19 for the standards pilot project established under sec20 tion 104(e) of the American Technology Pre21 eminence Act of 1991.

22 (b) TRANSFERS.—(1) Funds may be transferred

23 among the line items listed in subsection (a), so long as—

24 (A) the net funds transferred to or from any

25 line item do not exceed 10 percent of the amount

26 authorized for that line item in such subsection;
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1 (B) the aggregate amount authorized under

2 subsection (a) is not changed; and

3 (C) the Committee on Commerce, Science, and

4 Transportation of the Senate and the Committee on

5 Science, Space, and Technology of the House of

6 Representatives are notified in advance of any such

7 transfer.

8 (2) The Secretary may propose transfers to or from

9 any line item listed in subsection (a) exceeding 10 percent

10 of the amount authorized for such line item, but such pro11 posed transfer may not be made unless—

12 (A) a full and complete explanation of any such

13 proposed transfer and the reason therefor are trans14 mitted in writing to the Speaker of the House of

15 Representatives, the President of the Senate, and

16 the appropriate authorizing Committees of the

17 House of Representatives and the Senate; and

18 (B) 30 days have passed following the trans19 mission of such written explanation.

20 (c) EXTRAMURAL INDUSTRIAL TECHNOLOGY SERV21 ICES.—In addition to the amounts authorized under sub22 section (a), there are authorized to be appropriated to the

23 Secretary, to carry out the extramural industrial tech24 nology services activities of the Institute—
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1 (1) for Regional Centers for the Transfer of

2 Manufacturing Technology, $40,000,000 for fiscal

3 year 1994 and $60,000,000 for fiscal year 1995;

4 (2) for the State Technology Extension Pro5 gram, $10,000,000 for fiscal year 1994 and

6 $15,000,000 for fiscal year 1995; and

7 (3) for the Advanced Technology Program,

8 $250,000,000 for fiscal year 1994 and

9 $400,000,000 for fiscal year 1995, of which

10 $50,000,000 for fiscal year 1994 and $100,000,000

11 for fiscal year 1995 are authorized only for carrying

12 out section 322 of this Act.

13 SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY

14 ADMINISTRATION.

15 In addition to the amounts authorized under sections

16 501 and 502, there are authorized to be appropriated to

17 the Secretary—

18 (1) for the National Technology Outreach Pro19 gram established under section 303 of the Steven20 son-Wydler Technology Innovation Act of 1980,

21 $170,000,000 for the period encompassing fiscal

22 years 1994 and 1995;

23 (2) for the Advanced Manufacturing Tech24 nology Development Program established under sec25 tion 304 of the Stevenson-Wydler Technology Inno-
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1 vation Act of 1980, $30,000,000 for fiscal year 1994

2 and $50,000,000 for fiscal year 1995;

3 (3) for the Civilian Technology Loan Program

4 established under subtitle C of title III of this Act,

5 $40,000,000 for the period encompassing fiscal

6 years 1994 and 1995;

7 (4) for the Civilian Technologies Development

8 Program established under subtitle D of title III of

9 this Act, $100,000,000 for the period encompassing

10 fiscal years 1994 and 1995;

11 (5) for carrying out the Benchmarking Pro12 gram established under title IV of the Stevenson13 Wydler Technology Innovation Act of 1980,

14 $16,000,000 for fiscal year 1994 and $20,000,000

15 for fiscal year 1995; and

16 (6) for carrying out the American workforce

17 quality partnership program established under sec18 tion 305 of the Stevenson-Wydler Technology Inno19 vation Act of 1980, $50,000,000 for fiscal year 1994

20 and $50,000,000 for fiscal year 1995.

21 Amounts appropriated under paragraph (3) or (4) shall

22 remain available for expenditure through September 30,

23 1996. Of the amounts made available under paragraph (3)

24 for a fiscal year, not more than $2,000,000 or 10 percent,

25 whichever is greater, shall be available for administrative
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1 expenses. Of the amounts made available under paragraph

2 (4) for a fiscal year, not more than $5,000,000 or 10 per3 cent, whichever is greater, shall be available for adminis4 trative expenses. The Secretary, through the Under Sec5 retary and the Director, may accept the transfer of fund6 ing appropriated to any other agency for purposes similar

7 or related to those of the programs established and carried

8 out under title III of the Stevenson-Wydler Technology In9 novation Act of 1980, or the programs established and

10 carried out under sections 25 and 26 of the National Insti11 tute of Standards and Technology Act, and to use those

12 funds to implement such programs as provided in those

13 statutory provisions.

14 SEC. 504. NATIONAL SCIENCE FOUNDATION.

15 In addition to such other sums as may be authorized

16 by other Acts to be appropriated to the Director of the

17 National Science Foundation, there are authorized to be

18 appropriated to that Director—

19 (1) for carrying out section 212 of this Act,

20 $20,000,000 for fiscal year 1994 and $25,000,000

21 for fiscal year 1995; and

22 (2) for carrying out section 213 of this Act,

23 $30,000,000 for fiscal year 1994 and $35,000,000

24 for fiscal year 1995.
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1 SEC. 505. AVAILABILITY OF APPROPRIATIONS.

2 Except as otherwise provided in this title, appropria3 tions made under the authority provided in this title shall

4 remain available for obligation, for expenditure, or for ob5 ligation and expenditure for periods specified in the Acts

6 making such appropriations.

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