I

107TH CONGRESS

1ST SESSION H. R. 1417

To expand the Manufacturing Extension Program to bring the new economy

to small and medium-sized businesses.

IN THE HOUSE OF REPRESENTATIVES

APRIL 4, 2001

Mr. HINCHEY (for himself, Mr. QUINN, Mr. LAFALCE, Mr. MCNULTY, Ms.

SLAUGHTER, Mrs. MALONEY of New York, Mr. RANGEL, Mr. SERRANO,

and Mr. TOWNS) introduced the following bill; which was referred to the

Committee on Financial Services

A BILL

To expand the Manufacturing Extension Program to bring

the new economy to small and medium-sized businesses.

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 ‘‘Technology Extension

5 Act of 2001’’.

6 SEC. 2. FINDINGS.

7 Congress finds the following:

8 (1) The Federal Government developed the Ag9 riculture Extension Program, and more recently, the
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1 Manufacturing Extension Program to help farmers

2 and small manufacturers gain access to the latest

3 technologies. Today’s small and medium-sized busi4 nesses need a technology extension program that

5 provides access to cutting edge technology.

6 (2) There is a need to create partnerships to

7 cut the time it takes for new developments in univer8 sity laboratories to reach the manufacturing floor, to

9 help small and medium-sized businesses transform

10 their innovations into jobs.

11 (3) There is a need to build upon the Manufac12 turing Extension Program to encourage the adoption

13 of advanced technology.

14 SEC. 3. TECHNOLOGY EXTENSION PROGRAM.

15 (a) PURPOSE.—It is the purpose of this section—

16 (1) to encourage meaningful use of the most

17 advanced available technologies by small businesses

18 and medium-sized businesses to the maximum extent

19 possible to improve the productivity of those busi20 nesses and thereby to promote economic growth; and

21 (2) to promote regional partnerships between

22 educational institutions and businesses to develop

23 such technologies and products in the surrounding

24 areas.
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1 (b) GRANT PROGRAM.—To achieve the purpose of

2 this section, the Secretary of Commerce (in this section,

3 referred to as the ‘‘Secretary’’) shall carry out a program

4 to provide, through grants, financial assistance for the es5 tablishment and support of regional centers for the com6 mercial use of advanced technologies by small businesses

7 and medium-sized businesses.

8 (c) ELIGIBILITY.—An entity is eligible to receive a

9 grant as a regional center under this section if the

10 entity—

11 (1) is affiliated with a United States-based in12 stitution or organization that is operated on a not13 for-profit basis, or any combination of two or more

14 of such institutions or organizations;

15 (2) offers to enter into an agreement with the

16 Secretary to function as a regional center for the

17 commercial use of advanced technologies for the pur18 pose of this section within a region determined ap19 propriate by the Secretary; and

20 (3) demonstrates that it has the capabilities

21 necessary to achieve the purpose of this section

22 through its operations as a center within that re23 gion.

24 (d) SELECTION OF APPLICANTS.—
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1 (1) COMPETITIVE PROCESS.—The Secretary

2 shall use a competitive process for the awarding of

3 grants under this section and, under that process,

4 select recipients of the grants on the basis of merit,

5 with priority given to underserved areas.

6 (2) APPLICATIONS FOR GRANTS.—The Sec7 retary shall prescribe the form and content of appli8 cations required for grants under this section.

9 (e) SPECIFIC ACTIVITIES OF REGIONAL CENTERS.—

10 A regional center may use the proceeds of a grant under

11 this section for any activity that carries out the purpose

12 of this section, including such activities as the following:

13 (1) Assist small businesses and medium-sized

14 businesses to address their most critical needs for

15 the application of the latest technology, improvement

16 of infrastructure, and use of best business practices.

17 (2) In conjunction with institutions of higher

18 education and laboratories located in the region,

19 transfer technologies to small businesses and me20 dium-sized businesses located in such region to cre21 ate jobs and increase production in surrounding

22 areas.

23 (f) ADDITIONAL ADMINISTRATIVE AUTHORITIES.—

24 (1) COST-SHARING.—The Secretary may re25 quire the recipient of a grant to defray, out of funds
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1 available from sources other than the Federal Gov2 ernment, a specific level of the operating expenses of

3 the regional center for which the grant is made.

4 (2) ADDITIONAL TERMS AND CONDITIONS.—

5 The Secretary, in awarding a grant, may impose any

6 other terms and conditions for the use of the pro7 ceeds of the grant that the Secretary determines ap8 propriate for carrying out the purposes of this sec9 tion and to protect the interests of the United

10 States.

11 (g) DEFINITIONS OF SMALL BUSINESS AND ME12 DIUM-SIZED BUSINESS.—

13 (1) SECRETARY TO PRESCRIBE.—The Secretary

14 shall prescribe the definitions of the terms ‘‘small

15 business’’ and ‘‘medium-sized business’’ for the pur16 pose of this section.

17 (2) SMALL BUSINESS STANDARDS.—In defining

18 the term ‘‘small business’’, the Secretary shall apply

19 the standards applicable for the definition of the

20 term ‘‘small-business concern’’ under section 3 of

21 the Small Business Act (15 U.S.C. 632).

22 (h) REGULATIONS.—The Secretary shall prescribe

23 regulations for the grant program administered under this

24 section.
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1 (i) AUTHORIZATION OF APPROPRIATIONS.—There is

2 authorized to be appropriated for the Department of Com3 merce for carrying out this section $125,000,000 for fiscal

4 year 2002, and such sums as are necessary for each fiscal

5 year thereafter.

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