II

104TH CONGRESS

1ST SESSION S. 748

To require industry cost-sharing for the construction of certain new federally

funded research facilities, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 3 (legislative day, MAY 1), 1995

Mr. MCCAIN introduced the following bill; which was read twice and referred

to the Committee on Governmental Affairs

A BILL

To require industry cost-sharing for the construction of certain new federally funded research facilities, 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.

4 This Act may be cited as the ‘‘Federal Research

5 Financing Improvement Act of 1995’’.

6 SEC. 2. DEFINITIONS.

7 For the purposes of this Act, the following definition

8 shall apply:

9 (1) BENEFICIARY INDUSTRY.—The term ‘‘bene10 ficiary industry’’ means an industry with respect to
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1 which a covered research activity is intended to con2 tribute directly to the commercial success, advance3 ment, or competitiveness of the industry.

4 (2) CONSTRUCTION.—With respect to the con5 struction of a new Federal research facility, the term

6 ‘‘construction’’ means the supervising, inspecting,

7 and actual building of the facility, and all expenses

8 incidental to those activities.

9 (3) COOPERATIVE AGREEMENT.—The term ‘‘co10 operative agreement’’ means a cooperative agree11 ment between the Federal Government and rep12 resentatives of a beneficiary industry entered into

13 under section 3(a).

14 (4) COVERED RESEARCH ACTIVITY.—The term

15 ‘‘covered research activity’’ means a research activity

16 conducted by a Federal research facility that is in17 tended to contribute directly to the commercial suc18 cess, advancement, or competitiveness of one or

19 more beneficiary industries, including—

20 (A) theoretical analysis, experimentation,

21 or the systematic study of phenomena or ob22 servable facts;

23 (B) the development or testing of basic en24 gineering techniques; and
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1 (C) the extension of investigative findings

2 or theory of a scientific or technical nature into

3 practical application for experimental and dem4 onstration purposes, including the experimental

5 production and testing of models, prototypes,

6 equipment, materials, and processes.

7 (5) FEDERAL RESEARCH FACILITY.—The term

8 ‘‘Federal research facility’’—

9 (A) means any federally funded research

10 and development center that is operated by the

11 Federal Government or by a contractor;

12 (B) includes any laboratory covered under

13 section 12 of the Stevenson-Wydler Technology

14 Innovation Act of 1980 (15 U.S.C. 3710a); and

15 (C) does not include—

16 (i) any federally funded facility with

17 respect to which the primary mission is to

18 assist industrial concerns in complying

19 with Federal law;

20 (ii) any federally funded facility that

21 conducts research activities that the Presi22 dent determines to be of paramount inter23 est to the United States for reasons of na24 tional security; and
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1 (iii) any facility covered by Executive

2 Order No. 12344, dated February 1, 1982,

3 pertaining to the naval nuclear propulsion

4 program.

5 (6) FEDERAL AGENCY.—The term ‘‘Federal

6 agency’’ means any Executive agency, as defined in

7 section 105 of title 5, United States Code, the mili8 tary departments, as defined in section 102 of such

9 title, and any agency of the legislative branch of the

10 Federal Government.

11 (7) INDUSTRY.—The term ‘‘industry’’ means

12 any domestic industry—

13 (A) identified by the Secretary of Labor in

14 the Standard Industrial Classification Code is15 sued by the Secretary of Labor; or

16 (B) identified as a domestic industry by

17 the head of a Federal agency.

18 (8) NEW FEDERAL RESEARCH FACILITY.—

19 (A) IN GENERAL.—The term ‘‘new Federal

20 research facility’’ means a Federal research fa21 cility the construction of which commences after

22 the date of enactment of this Act.

23 (B) SIGNIFICANT EXPANSION IN24 CLUDED.—The term ‘‘new Federal research fa25 cility’’ includes any significant expansion of a
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1 Federal research facility that commences after

2 the date of enactment of this Act.

3 SEC. 3. COOPERATIVE AGREEMENTS.

4 (a) FEDERAL RESEARCH FACILITIES.—Notwith5 standing any other provision of law, no new Federal re6 search facility may be constructed to carry out a covered

7 research activity unless the head of the Federal agency

8 with jurisdiction over the new Federal research facility en9 ters into a cooperative agreement with appropriate rep10 resentatives of each beneficiary industry to be served by

11 the covered research activity to—

12 (1) carry out the construction of the new Fed13 eral research facility; and

14 (2) conduct a covered activity at that facility.

15 (b) REQUIREMENTS FOR COOPERATIVE AGREE16 MENTS.—

17 (1) IN GENERAL.—Each cooperative agreement

18 entered into under subsection (a) shall—

19 (A) specify that the beneficiary industries

20 that are parties to the cooperative agreement

21 shall pay not less than 50 percent of the cost

22 of the construction, operation, and maintenance

23 of the new Federal research facility that is the

24 subject of the cooperative agreement;
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1 (B) specify the percentage amount that

2 each beneficiary industry referred to in sub3 paragraph (A) is required to pay to cover the

4 costs under such subparagraph;

5 (C) specify that the agency head may enter

6 into such contracts with, and award such

7 grants to representatives of the beneficiary in8 dustries, as are necessary to carry out the coop9 erative agreement;

10 (D) provide for—

11 (i) the sharing, among beneficiary in12 dustries, of certain intellectual property ob13 tained from covered research activities con14 ducted at the new Federal research facil15 ity; and

16 (ii) the protection of certain intellec17 tual property of the beneficiary industry

18 used by the Federal Government in carry19 ing out the covered research activities; and

20 (E) specify the conditions under which,

21 and the procedures pursuant to which, the Fed22 eral Government may terminate the construc23 tion of the new Federal research facility or the

24 covered research activity.
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1 (2) PERCENTAGE AMOUNT.—The percentage

2 amount that a beneficiary industry shall be required

3 to pay under paragraph (1)(B) shall be determined

4 by the head of the Federal agency in accordance

5 with a formula developed by the agency head to pro6 vide for contributions from all beneficiary industries

7 served by the new Federal research facility.

8 (c) REGULATIONS.—The head of each Federal agency

9 shall promulgate such regulations as may be necessary to

10 carry out this section, including regulations concerning—

11 (1) monitoring the execution of cooperative

12 agreements entered into under subsection (a);

13 (2) the establishment of procedures regarding

14 financial reporting and auditing to ensure that any

15 contract entered into under this section or grant

16 award made pursuant to this section is used only for

17 the purposes specified in the applicable cooperative

18 agreement entered into under subsection (a); and

19 (3) the appropriate dissemination of the results

20 of research conducted pursuant to a cooperative

21 agreement entered into under subsection (a).

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