I

103D CONGRESS

1ST SESSION H. R. 110

To amend the Internal Revenue Code of 1986 to provide for economic

revitalization, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1993

Mr. BOEHLERT introduced the following bill; which was referred jointly to the

Committees on Ways and Means, Science, Space, and Technology and

Public Works and Transportation

A BILL

To amend the Internal Revenue Code of 1986 to provide

for economic revitalization, and for other purposes.

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

3 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

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

5 ‘‘Economic Revitalization and Competitiveness Act of

6 1993’’.

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amend9 ment or repeal is expressed in terms of an amendment

10 to, or repeal of, a section or other provision, the reference
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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986.

3 TITLE I—TAX INCENTIVES

4 SEC. 101. REINSTATEMENT OF 5-PERCENT INVESTMENT

5 TAX CREDIT.

6 (a) IN GENERAL.—Subpart E of part IV of sub7 chapter A of chapter 1 (relating to rules for computing

8 credit for investment in certain depreciable property), as

9 amended by subsection (b)(2), is amended by adding at

10 the end the following new section:

11 ‘‘SEC. 50. 5-PERCENT REGULAR INVESTMENT CREDIT.

12 ‘‘With respect to any property placed in service after

13 December 31, 1991—

14 ‘‘(1) section 49 shall not apply, and

15 ‘‘(2) the regular percentage for purposes of this

16 subpart shall be 5 percent.’’

17 (b) CONFORMING AMENDMENTS.—

18 (1) The table of sections for such subpart E is

19 amended by adding at the end the following new

20 item:

‘‘Sec. 50. 5-percent regular investment credit.’’

21 (2) Section 11813 of the Revenue Reconcili22 ation Act of 1990 (Public Law 101–508) is hereby

23 repealed, and the Internal Revenue Code of 1986

24 shall be applied and administered as if such section
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1 (and the amendments made by such section) had

2 never been enacted.

3 SEC. 102. RESEARCH CREDIT MADE PERMANENT.

4 (a) IN GENERAL.—Section 41 (relating to credit for

5 increasing research activities) is amended by striking sub6 section (h).

7 (b) CONFORMING AMENDMENT.—Paragraph (1) sec8 tion 28(b) is amended by striking subparagraph (D).

9 (c) EFFECTIVE DATE.—The amendments made by

10 this section shall apply to taxable years ending after June

11 30, 1992.

12 SEC. 103. EXCLUSION FOR EDUCATIONAL ASSISTANCE PRO13 GRAMS MADE PERMANENT.

14 (a) EXCLUSION MADE PERMANENT.—Section 127

15 (relating to educational assistance programs) is amended

16 by striking subsection (d).

17 (b) CONFORMING AMENDMENT.—Paragraph (2) of

18 section 103(a) of the Tax Extension Act of 1991 is hereby

19 repealed.

20 (c) EFFECTIVE DATE.—The amendments made by

21 this section shall apply to taxable years beginning after

22 December 31, 1991.
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1 SEC. 104. EXPANSION OF EXCEPTION FROM REBATE FOR

2 SMALL ISSUERS.

3 (a) IN GENERAL.—Subparagraph (C) of section

4 148(f)(4) (relating to exception for governmental units is5 suing $5,000,000 or less of bonds) is amended—

6 (1) by striking ‘‘$5,000,000’’ each place it ap7 pears and inserting ‘‘$25,000,000’’,

8 (2) by striking ‘‘with general taxing powers’’

9 each place it appears,

10 (3) by inserting ‘‘or on behalf of’’ after ‘‘issued

11 by’’ in subclauses (I) and (IV) of clause (i) and in

12 clause (vi)(I), and

13 (4) by striking clause (iv) and redesignating

14 clauses (v) and (vi) thereof as clauses (iv) and (v),

15 respectively.

16 (b) TECHNICAL AMENDMENT.—Clause (v) of section

17 148(f)(4)(C), as redesignated by subsection (a), is amend18 ed by striking ‘‘clause (v)’’ and inserting ‘‘clause (iv)’’.

19 (c) EFFECTIVE DATE.—The amendments made by

20 this section shall apply to obligations issued in calendar

21 years beginning after the date of the enactment of this

22 Act.

23 SEC. 105. TARGETED JOBS CREDIT.

24 (a) IN GENERAL.—Subsection (c) of section 51 (re25 lating to amount of targeted jobs credit) is amended by

26 striking paragraph (4).
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall apply to individuals who begin work

3 for the employer after June 30, 1992.

4 SEC. 106. REDUCTION IN CAPITAL GAINS TAX FOR INDIVID5 UALS.

6 (a) GENERAL RULE.—Part I of subchapter P of

7 chapter 1 is amended by adding at the end thereof the

8 following new section:

9 ‘‘SEC. 1202. DEDUCTION FOR CAPITAL GAINS.

10 ‘‘(a) DEDUCTION ALLOWED FOR CAPITAL GAIN.—

11 ‘‘(1) IN GENERAL.—If, for any taxable year, a

12 taxpayer other than a corporation has a net capital

13 gain, an amount equal to the sum of the applicable

14 percentages of the applicable capital gain shall be al15 lowed as a deduction.

16 ‘‘(2) ESTATES AND TRUSTS.—In the case of an

17 estate or trust, the deduction under paragraph (1)

18 shall be computed by excluding the portion (if any)

19 of the gains for the taxable year from sales or ex20 changes of capital assets which, under sections 652

21 and 662 (relating to inclusions of amounts in gross

22 income of beneficiaries of trusts), is includible by the

23 income beneficiaries as gain derived from the sale or

24 exchange of capital assets.
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1 ‘‘(b) APPLICABLE PERCENTAGES.—For purposes of

2 this subsection, the applicable percentages shall be the

3 percentages determined in accordance with the following

4 table:

The applicable

‘‘In the case of: percentage is:

1-year gain ................................................................................ 10

2-year gain ................................................................................ 20

3-year gain ................................................................................ 30.

5 ‘‘(c) GAIN TO WHICH DEDUCTION APPLIES.—For

6 purposes of this section—

7 ‘‘(1) APPLICABLE CAPITAL GAIN.—The term

8 ‘applicable capital gain’ means 1-year gain, 2-year

9 gain, or 3-year gain determined by taking into ac10 count only gain which is properly taken into account

11 for periods on or after January 1, 1993.

12 ‘‘(2) 3-YEAR GAIN.—The term ‘3-year gain’

13 means the lesser of—

14 ‘‘(A) the net capital gain for the taxable

15 year, or

16 ‘‘(B) the long-term capital gain determined

17 by taking into account only gain from the sale

18 or exchange of assets held more than 3 years.

19 ‘‘(3) 2-YEAR GAIN.—The term ‘2-year gain’

20 means the lesser of—

21 ‘‘(A) the net capital gain for the taxable

22 year, reduced by 3-year gain, or
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1 ‘‘(B) the long-term capital gain determined

2 by taking into account only gain from the sale

3 or exchange of assets held more than 2 years

4 but not more than 3 years.

5 ‘‘(4) 1-YEAR GAIN.—The term ‘1-year gain’

6 means the net capital gain for the taxable year de7 termined by taking into account only—

8 ‘‘(A) gain from the sale or exchange of as9 sets held more than 1 year but not more than

10 2 years, and

11 ‘‘(B) losses from the sale or exchange of

12 assets held more than 1 year.

13 ‘‘(5) SPECIAL RULES FOR PASS-THRU ENTI14 TIES.—

15 ‘‘(A) IN GENERAL.—In applying this sub16 section with respect to any pass-thru entity, the

17 determination of when a sale or exchange has

18 occurred shall be made at the entity level.

19 ‘‘(B) PASS-THRU ENTITY DEFINED.—For

20 purposes of subparagraph (A), the term ‘pass21 thru entity’ means—

22 ‘‘(i) a regulated investment company,

23 ‘‘(ii) a real estate investment trust,

24 ‘‘(iii) an S corporation,

25 ‘‘(iv) a partnership,
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1 ‘‘(v) an estate or trust, and

2 ‘‘(vi) a common trust fund.

3 ‘‘(6) RECAPTURE OF NET ORDINARY LOSS

4 UNDER SECTION 1231.—For purposes of this sub5 section, if any amount is treated as ordinary income

6 under section 1231(c) for any taxable year—

7 ‘‘(A) the amount so treated shall be allo8 cated proportionately among the section 1231

9 gains (as defined in section 1231(a)) for such

10 taxable year, and

11 ‘‘(B) the amount so allocated to any such

12 gain shall reduce the amount of such gain.’’

13 (b) TREATMENT OF COLLECTIBLES.—

14 (1) IN GENERAL.—Section 1222 is amended by

15 inserting after paragraph (11) the following new

16 paragraph:

17 ‘‘(12) SPECIAL RULE FOR COLLECTIBLES.—

18 ‘‘(A) IN GENERAL.—Any gain or loss from

19 the sale or exchange of a collectible shall be

20 treated as a short-term capital gain or loss (as

21 the case may be), without regard to the period

22 such asset was held. The preceding sentence

23 shall apply only to the extent the gain or loss

24 is taken into account in computing taxable in25 come.
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1 ‘‘(B) TREATMENT OF CERTAIN SALES OF

2 INTEREST IN PARTNERSHIP, ETC.—For pur3 poses of subparagraph (A), any gain from the

4 sale or exchange of an interest in a partnership,

5 S corporation, or trust which is attributable to

6 unrealized appreciation in the value of collect7 ibles held by such entity shall be treated as gain

8 from the sale or exchange of a collectible. Rules

9 similar to the rules of section 751(f) shall apply

10 for purposes of the preceding sentence.

11 ‘‘(C) COLLECTIBLE.—For purposes of this

12 paragraph, the term ‘collectible’ means any cap13 ital asset which is a collectible (as defined in

14 section 408(m) without regard to paragraph (3)

15 thereof).’’

16 (2) CHARITABLE DEDUCTION NOT AF17 FECTED.—

18 (A) Paragraph (1) of section 170(e) is

19 amended by adding at the end thereof the fol20 lowing new sentence: ‘‘For purposes of this

21 paragraph, section 1222 shall be applied with22 out regard to paragraph (12) thereof (relating

23 to special rule for collectibles).’’

24 (B) Clause (iv) of section 170(b)(1)(C) is

25 amended by inserting before the period at the
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1 end thereof the following: ‘‘and section 1222

2 shall be applied without regard to paragraph

3 (12) thereof (relating to special rule for collect4 ibles)’’.

5 (c) MINIMUM TAX.—Section 56(b) is amended by

6 adding at the end thereof the following new paragraph:

7 ‘‘(4) CAPITAL GAINS DEDUCTION DISALLOW8 ANCE.—The deduction under section 1202 shall not

9 be allowed.’’

10 (d) CONFORMING AMENDMENTS.—

11 (1) Subsection (h) of section 1 is hereby re12 pealed.

13 (2) Section 12 is amended by striking para14 graph (4) and redesignating the following para15 graphs accordingly.

16 (3) Section 62(a) is amended by inserting after

17 paragraph (14) the following new paragraph:

18 ‘‘(15) CAPITAL GAINS DEDUCTION.—The deduc19 tion allowed by section 1202.’’

20 (4) Clause (ii) of section 163(d)(4)(B) is

21 amended by inserting ‘‘, reduced by the amount of

22 any deduction allowable under section 1202 attrib23 utable to gain from such property’’ after ‘‘invest24 ment’’.
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1 (5)(A) Section 170(e)(1)(B) is amended by in2 serting ‘‘(or, in the case of a taxpayer other than a

3 corporation, the nondeductible percentage of the

4 amount of gain)’’ after ‘‘the amount of gain’’.

5 (B) Section 170(e)(1) is amended by adding at

6 the end thereof the following new sentence: ‘‘For

7 purposes of subparagraph (B), the term ‘nondeduct8 ible percentage’ means 100 percent minus the appli9 cable percentage with respect to such property under

10 section 1202(b).’’

11 (6)(A) Section 172(d)(2) (relating to modifica12 tions with respect to net operating loss deduction) is

13 amended to read as follows:

14 ‘‘(2) CAPITAL GAINS AND LOSSES OF TAX15 PAYERS OTHER THAN CORPORATIONS.—In the case

16 of a taxpayer other than a corporation—

17 ‘‘(A) the amount deductible on account of

18 losses from sales or exchanges of capital assets

19 shall not exceed the amount includible on ac20 count of gains from sales or exchanges of cap21 ital assets; and

22 ‘‘(B) the deduction provided by section

23 1202 shall not be allowed.’’
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1 (B) Subparagraph (B) of section 172(d)(4) is

2 amended by inserting ‘‘, (2)(B),’’ after ‘‘paragraph

3 (1)’’.

4 (7)(A) Section 220 (relating to cross reference)

5 is amended to read as follows:

6 ‘‘SEC. 220. CROSS REFERENCES.

‘‘(1) For deduction for net capital gain, see section

1202.

‘‘(2) For deductions in respect of a decedent, see

section 691.’’

7 (B) The table of sections for part VII of sub8 chapter B of chapter 1 is amended by striking ‘‘ref9 erence’’ in the item relating to section 220 and in10 serting ‘‘references’’.

11 (8) Paragraph (4) of section 642(c) is amended

12 to read as follows:

13 ‘‘(4) ADJUSTMENTS.—To the extent that the

14 amount otherwise allowable as a deduction under

15 this subsection consists of gain from the sale or ex16 change of capital assets held for more than 1 year,

17 proper adjustment shall be made for any deduction

18 allowable to the estate or trust under section 1202

19 (relating to deduction for net capital gain). In the

20 case of a trust, the deduction allowed by this sub21 section shall be subject to section 681 (relating to

22 unrelated business income).’’
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1 (9) Paragraph (3) of section 643(a) is amended

2 by adding at the end thereof the following new sen3 tence: ‘‘The deduction under section 1202 (relating

4 to deduction for net capital gain) shall not be taken

5 into account.’’

6 (10) Paragraph (6)(C) of section 643(a) is

7 amended—

8 (A) by inserting ‘‘(i)’’ before ‘‘there’’, and

9 (B) by inserting ‘‘, and (ii) the deduction

10 under section 1202 (relating to deduction for

11 excess of capital gains over capital losses)’’ be12 fore the period at the end thereof.

13 (11) Paragraph (4) of section 691(c) is amend14 ed by striking ‘‘1(h),’’.

15 (12) The second sentence of paragraph (2) of

16 section 871(a) is amended by inserting ‘‘such gains

17 and losses shall be determined without regard to sec18 tion 1202 (relating to deduction for net capital gain)

19 and’’ after ‘‘except that’’.

20 (13)(A) Subparagraph (B) of section 904(b)(2)

21 is amended by striking out so much of such subpara22 graph as precedes clause (i) and inserting the follow23 ing:

24 ‘‘(B) SPECIAL RULES WHERE CORPORATE

25 CAPITAL RATE GAIN DIFFERENTIAL.—In the
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1 case of a corporation, for any taxable year for

2 which there is a capital gain rate differential—

3 ’’.

4 (B) Subparagraphs (D) and (E) of section

5 904(b)(3) are amended to read as follows:

6 ‘‘(D) CAPITAL GAIN RATE DIFFEREN7 TIAL.—There is a capital gain rate differential

8 for any taxable year if any rate of tax imposed

9 by section 11, 511, or 831(a) or (b) (whichever

10 applies) exceeds the alternative rate of tax

11 under section 1201(a) (determined without re12 gard to the last sentence of section 11(b)(1)).

13 ‘‘(E) RATE DIFFERENTIAL PORTION.—The

14 rate differential portion of foreign source net

15 capital gain, net capital, or the excess of net

16 capital gain from sources within the United

17 States over net capital gain, as the case may

18 be, is the same proportion of such amount as—

19 ‘‘(i) the excess of the highest rate of

20 tax specified in section 11(b)(1) over the

21 alternative rate of tax under section

22 1201(a), bears to

23 ‘‘(ii) the highest rate of tax specified

24 in section 11(b)(1).’’
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1 (14) Section 1402(i)(1) is amended to read as

2 follows:

3 ‘‘(1) IN GENERAL.—In determining the net

4 earnings from self-employment of any options dealer

5 or commodities dealer—

6 ‘‘(A) notwithstanding subsection (a)(3)(A),

7 there shall not be excluded any gain or loss (in

8 the normal course of the taxpayer’s activity of

9 dealing in or trading section 1256 contracts)

10 from section 1256 contracts or property related

11 to such contracts, and

12 ‘‘(B) the deduction provided by section

13 1202 shall not apply.’’

14 (e) CLERICAL AMENDMENT.—The table of sections

15 for part I of subchapter P of chapter 1 is amended by

16 adding at the end thereof the following new item:

‘‘Sec. 1202. Deduction for capital gains.’’

17 (f) EFFECTIVE DATES.—

18 (1) IN GENERAL.—Except as provided in para19 graph (2), the amendments made by this section

20 shall apply to taxable years ending after December

21 31, 1992.

22 (2) TREATMENT OF COLLECTIBLES.—The

23 amendment made by subsection (b) shall apply to

24 taxable years beginning after December 31, 1992.
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1 TITLE II—MANUFACTURING

2 TECHNOLOGY

3 SEC. 201. NATIONWIDE NETWORK OF MANUFACTURING

4 OUTREACH CENTERS.

5 The Stevenson-Wydler Technology Innovation Act of

6 1980 (15 U.S.C. 3701 et seq.) is amended by adding at

7 the end the following new section:

8 ‘‘SEC. 24. NATIONWIDE NETWORK OF MANUFACTURING

9 OUTREACH CENTERS.

10 ‘‘(a) ESTABLISHMENT AND PURPOSE OF NET11 WORK.—The Secretary, acting through the Under Sec12 retary and the Director, shall establish, coordinate, and

13 implement, in accordance with the plans prepared under

14 subsections (b) and (e), a program to be known as the

15 Nationwide Network of Manufacturing Outreach Centers

16 (in this section referred to as the ‘Network’) for the pur17 pose of assisting United States manufacturers, especially

18 small- and medium-sized firms, to expand and accelerate

19 the use of modern manufacturing practices, and to accel20 erate the development and use of advanced manufacturing

21 technology.

22 ‘‘(b) EVALUATION AND PLAN FOR SUPPORT OF EX23 ISTING CENTERS.—Within 6 months after the date of en24 actment of this section, the Secretary, in consultation with
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1 the Under Secretary, the Director, and the Advisory

2 Board, shall submit a report to Congress—

3 ‘‘(1) describing how the Technology Administra4 tion will carry out its responsibilities under this sec5 tion, including recommendations for reorganization

6 if necessary;

7 ‘‘(2) identifying the Federal, State, and local

8 government agencies and other appropriate organi9 zations, including centers established under section

10 25 of the National Institute of Standards and Tech11 nology Act, Federal, State, and local extension pro12 grams, small business development centers, profes13 sional societies, industrial associations, and pro14 grams of nonprofit organizations, universities, com15 munity colleges, technical colleges, and Federal lab16 oratories, engaged in manufacturing or technology

17 extension activities;

18 ‘‘(3) evaluating the capabilities, shortcomings,

19 and potential of organizations identified under para20 graph (2), to enhance United States manufacturing

21 capabilities;

22 ‘‘(4) establishing a plan for Federal pro23 grams—
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1 ‘‘(A) linking organizations described in

2 paragraph (2), the Technology Administration,

3 and other appropriate Federal agencies;

4 ‘‘(B) providing services and financial aid to

5 those organizations to increase the effectiveness

6 of their manufacturing outreach programs; and

7 ‘‘(C) ensuring synergy among Federal,

8 State, and local organizations involved in the

9 Network;

10 ‘‘(5) establishing procedures for the selection of

11 organizations described in paragraph (2) as Manu12 facturing Outreach Centers;

13 ‘‘(6) establishing criteria for providing Federal

14 services and financial aid to Manufacturing Out15 reach Centers, including recommendations for cost

16 sharing and mechanisms for basing continued sup17 port on Center performance; and

18 ‘‘(7) evaluating the need for and the benefits of

19 a National Conference of States on Industrial Ex20 tension, with representation from all the States, ap21 propriate Federal agencies, business, and other in22 terested parties, in establishing, coordinating, and

23 implementing the policies and programs of the

24 States and the Federal Government, including those

25 established under this section, pertaining to indus-
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1 trial extension activities, and, if the Secretary deter2 mines that such a Conference is advisable, develop3 ing, in consultation with the States and other inter4 ested parties, a plan for the establishment, oper5 ation, funding, and evaluation of a National Con6 ference of States on Industrial Extension that is

7 similar in structure to the National Conference on

8 Weights and Measures established by the National

9 Institute of Standards and Technology under section

10 2 of the National Institute of Standards and Tech11 nology Act (15 U.S.C. 272).

12 In preparing such report, the Secretary shall, to the great13 est extent practicable, use existing reports and rec14 ommendations, including recommendations for changes to

15 and expansion of the centers established under section 25

16 of the National Institute of Standards and Technology Act

17 (15 U.S.C. 278k) or to the State Technology Extension

18 Programs established under section 26 of such Act (15

19 U.S.C. 278l). Such report shall be prepared in consulta20 tion with a cross section of industry representatives served

21 by and working with the organizations described in para22 graph (2), and in consultation and coordination with other

23 Federal and State agencies involved in technology exten24 sion activities.
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1 ‘‘(c) COMMUNICATIONS INFRASTRUCTURE.—(1) In

2 order to facilitate the operations of the Network, the De3 partment of Commerce, after consultation with the Advi4 sory Board, shall provide for a communications infrastruc5 ture consisting of comprehensive computer integrated sys6 tems—

7 ‘‘(A) to facilitate interaction among Manufac8 turing Outreach Centers; and

9 ‘‘(B) to provide for the collection and dissemi10 nation in electronic form, in a timely and accurate

11 manner, of information appropriate to the purpose

12 of the Network.

13 Such infrastructure shall be designed to enable the instan14 taneously interactive exchange of information among the

15 various organizations and Federal agencies that are a part

16 of, that support, or that benefit from the Network. Such

17 communications infrastructure shall, wherever practicable,

18 make use of existing computer networks.

19 ‘‘(2) The Secretary shall, within one year after the

20 date of the enactment of this section, develop and submit

21 to the Congress a management plan for—

22 ‘‘(A) the communications infrastructure de23 scribed in paragraph (1), including user fees and ap24 propriate electronic access for information suppliers

25 and users; and
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1 ‘‘(B) the clearinghouse system developed under

2 subsection (d).

3 ‘‘(d) CLEARINGHOUSE.—(1) The Secretary shall de4 velop a clearinghouse system, using the National Tech5 nical Information Service and private sector information

6 providers and carriers where appropriate, to—

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

8 appropriate to the purpose of the Network stated in

9 subsection (a), from all available Federal sources,

10 providing assistance where necessary in making such

11 information electronically available and compatible

12 with the Network;

13 ‘‘(B) ensure ready access by United States

14 manufacturers and other interested private sector

15 parties to the most recent relevant available such in16 formation and expertise; and

17 ‘‘(C) to the extent practicable, inform such

18 manufacturers of the availability of such informa19 tion.

20 ‘‘(2) The clearinghouse shall include information

21 available electronically on—

22 ‘‘(A) activities of Manufacturing Outreach Cen23 ters and the users of the Network;

24 ‘‘(B) domestic and international standards from

25 the National Institute of Standards and Technology
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1 and private sector organizations and other export

2 promotion information, including conformity assess3 ment requirements and procedures;

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

5 and quality principles and standards;

6 ‘‘(D) federally funded technology development

7 and transfer programs;

8 ‘‘(E) responsibilities assigned to the Clearing9 house for State and Local Initiatives on Productiv10 ity, Technology, and Innovation under section 6 of

11 this Act;

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

13 ‘‘(G) other subjects relevant to the ability of

14 companies to manufacture and sell competitive prod15 ucts throughout the world.

16 ‘‘(e) 5-YEAR PLAN.—Within 1 year after the date of

17 enactment of this section, the Secretary, in consultation

18 with the Under Secretary, the Director, and the Advisory

19 Board, shall prepare and submit to the Congress a 5-year

20 plan for implementing and expanding the Network. Such

21 plan shall identify appropriate methods for expanding the

22 Network in a geographically balanced manner, including

23 a merit-based process for the selection of additional Manu24 facturing Outreach Centers. In selecting Manufacturing

25 Outreach Centers, and in awarding financial assistance to
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1 such Centers, the Under Secretary shall ensure that man2 ufacturers using the Network are consulted as to the past

3 performance of applicants. Such 5-year plan shall include

4 a detailed implementation plan and cost estimates and

5 shall take into consideration and build on the report sub6 mitted under subsection (b).

7 ‘‘(f) PRINCIPLES.—In carrying out this section, the

8 Department of Commerce shall take into consideration the

9 following principles:

10 ‘‘(1) The Network shall be established and op11 erated through cooperation and co-funding among

12 Federal, State, and local governments, other public

13 and private contributors, and end users.

14 ‘‘(2) The Network shall utilize and leverage, to

15 the extent practicable, existing organizations, data

16 bases, electronic networks, facilities, and capabilities.

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

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

20 ‘‘(4) Manufacturing Outreach Centers should

21 have the capability to deliver outreach services di22 rectly to manufacturers, actively work with, rather

23 than supplant, the private sector, and to the extent

24 practicable, maximize the exposure of manufacturers

25 to demonstrations of modern technologies in use.
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1 ‘‘(5) Manufacturing Outreach Centers shall

2 focus, where possible, on the development and de3 ployment of flexible manufacturing practices applica4 ble to both defense and commercial applications.

5 ‘‘(6) The Department of Commerce shall de6 velop mechanisms for—

7 ‘‘(A) soliciting the perspectives of manufac8 turers using the services of the Manufacturing

9 Outreach Centers; and

10 ‘‘(B) evaluating the effectiveness of the

11 Manufacturing Outreach Centers.

12 ‘‘(g) ANNUAL REPORT TO CONGRESS.—The Sec13 retary shall annually report to the Congress on—

14 ‘‘(1) progress made in carrying out this section

15 during the preceding fiscal year;

16 ‘‘(2) changes proposed to the 5-year plan;

17 ‘‘(3) performance in adhering to schedules; and

18 ‘‘(4) any recommendations for legislative

19 changes necessary to enhance the Network.

20 The report under this subsection submitted at the end of

21 the fourth year of operation of the Network shall include

22 recommendations on whether to terminate the Network or

23 extend it for a specified period of time.

24 ‘‘(h) DEFINITIONS.—For the purposes of this section,

25 the following definitions apply:
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1 ‘‘(1) DIRECTOR.—The term ‘Director’ means

2 the Director of the National Institute of Standards

3 and Technology.

4 ‘‘(2) ADVANCED MANUFACTURING TECH5 NOLOGY.—The term ‘advanced manufacturing tech6 nology’ includes—

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

8 robots, automated process control equipment,

9 computerized flexible manufacturing systems,

10 associated computer software, and other tech11 nology for improving manufacturing and indus12 trial production which advance the state-of-the13 art; and

14 ‘‘(B) novel techniques and processes de15 signed to improve manufacturing quality, pro16 ductivity, and practices, including engineering

17 design, quality assurance, concurrent engineer18 ing, continuous process production technology,

19 energy efficiency, waste minimization, inventory

20 management, upgraded worker skills, and com21 munications with customers and suppliers.

22 ‘‘(3) MODERN TECHNOLOGY.—The term ‘mod23 ern technology’ means the best available proven

24 technology, techniques, and processes appropriate to

25 enhancing the productivity of manufacturers.
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1 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated to the Secretary for car3 rying out this section $120,000,000 for the period encom4 passing fiscal years 1994 and 1995.’’.

5 TITLE III—APPROPRIATIONS

6 FROM TRANSPORTATION

7 TRUST FUNDS

8 SEC. 301. SENSE OF CONGRESS.

9 It is the sense of Congress that all amounts author10 ized to be appropriated out of the Highway Trust Fund

11 under the Intermodal Surface Transportation Efficiency

12 Act of 1991 (including amendments made by such Act)

13 and all amounts authorized to be appropriated out of the

14 Airport and Airway Trust Fund under the Airport and

15 Airway Safety, Capacity, Noise Improvement, and Inter16 modal Transportation Act of 1992 (including amendments

17 made by such Act) should be appropriated.

Æ

HR 110 IH——2

HR 110 IH——3