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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1675 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1675

To provide for enhanced cooperation between the Federal Government and 
the United States civil aviation manufacturing industry in aeronautical 
 technology research, development, design, and commercialization, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 2, 1993

 Mr. Gejdenson (for himself and Mr. Gephardt) introduced the following 
   bill; which was referred jointly to the Committees on Science and 
             Technology and Public Works and Transportation

_______________________________________________________________________

                                 A BILL

 
To provide for enhanced cooperation between the Federal Government and 
the United States civil aviation manufacturing industry in aeronautical 
 technology research, development, design, and commercialization, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Aeronautical Technology Consortium 
Act of 1993''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) A strong civil aviation manufacturing industry is 
        critical to the health of the United States economy; aircraft 
        production in the United States affects nearly 80 percent of 
        the economy, and for every additional dollar of shipments of 
        aircraft, output of the economy increases by an estimated 
        $2.30.
            (2) A strong civil aviation manufacturing industry is 
        critical to the national security of the United States because 
        of the synergies between civil and military aeronautical 
        technologies and the need for a strong advanced technology 
        industrial base.
            (3) The National Critical Technologies Panel (established 
        pursuant to section 601 of the National Science and Technology 
        Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
        6681)) has identified aeronautics as one of 22 categories of 
        technologies critical to national economic prosperity and to 
        national security.
            (4) While the United States has traditionally dominated the 
        world commercial aircraft market, the United States civil 
        aviation manufacturing industry is facing the two critical 
        challenges of significant cutbacks in defense procurement and 
        related military spending, and the growing competitive strength 
        of foreign subsidized aviation industries, such as the European 
        aircraft consortium, Airbus Industrie.
            (5) Airbus Industrie, a consortium of 4 European aircraft 
        manufacturing companies that are supported by their 
        governments, has developed a family of competitive aircraft 
        models and has captured \1/4\ of the world market for large 
        civil aircraft.
            (6) In 1992, the United States signed an agreement with the 
        European Community that permits the European governments to 
        continue to subsidize up to 33 percent of the development costs 
        of new large civil aircraft.
            (7) Given current and expected reductions in defense 
        spending and increased competitive pressures in the civil 
        aircraft market, it is critical for the Federal Government to 
        coordinate its aeronautics and related programs and redirect 
        these resources to assist the United States civil aviation 
        manufacturing industry to meet the competitive challenge from 
        foreign suppliers such as Airbus Industrie.
            (8) The Federal Government has played an active role in 
        research and development of aeronautical technologies since the 
        National Advisory Committee on Aeronautics was created in 1915.
            (9) In recent years, however, Federal Government support 
        for aerospace research and development has focused 
        overwhelmingly on military and space technologies.
            (10) Federal programs relating to aeronautics research and 
        development today are spread among a number of differing 
        Federal agencies, including the Department of Defense, the 
        Department of Transportation, and the Department of Commerce, 
        as well as the National Aeronautics and Space Administration 
        and the National Science Foundation.
            (11) Federal financial assistance to the semiconductor 
        industry consortium known as Sematech has been successful in 
        improving the competitiveness of the United States 
        semiconductor industry.
            (12) The Federal Government should use Sematech as a model 
        in developing a program to provide financial assistance to an 
        industry-led consortium of United States civil aviation 
        manufacturing companies.
            (13) Such a government-industry consortium should focus its 
        efforts on research, development, design, and commercialization 
        of new aeronautical technologies and related manufacturing 
        technologies, as well as the transfer and conversion of 
        aeronautical technologies developed for national security 
        purposes to commercial applications for large civil aircraft.
    (b) Purpose.--The purpose of this Act is to strengthen and assist 
the United States civil aviation manufacturing industry.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``Advisory Committee'' means the Aeronautical 
        Technical Advisory Committee established in section 6.
            (2) The term ``Consortium'' means the Aeronautical 
        Technology Consortium referred to in section 5.
            (3) The term ``Coordinating Committee'' means the 
        Aeronautical Technology Coordinating Committee referred to in 
        section 4(c).
            (4) The term ``Director'' means the Director of the Office 
        of Science and Technology Policy.
            (5) The term ``Federal laboratory'' has the meaning given 
        such term in section 4(6) of the Stevenson-Wydler Technology 
        Innovation Act of 1980 (15 U.S.C. 3703(6)).
            (6) The term ``joint venture'' has the meaning given such 
        term in section 28(j)(1) of the National Institute of Standards 
        and Technology Act (15 U.S.C. 278n(j)(1)).
            (7) The term ``large civil aircraft'' means all aircraft 
        that are designed for passenger or cargo transportation and 
        have 100 or more passenger seats or its equivalent in cargo 
        configuration.
            (8) The term ``manufacturing technology'' means techniques 
        and processes designed to improve manufacturing quality, 
        productivity, and practices, including engineering design, 
        quality assurance, concurrent engineering, continuous process 
        production technology, energy efficiency, waste minimization, 
        design for recyclability or parts reuse, shop floor management, 
        inventory management, worker training, and communications with 
        customers and suppliers, as well as manufacturing equipment and 
        software.
            (9) The term ``Program'' means the Aeronautical Technology 
        Program established pursuant to section 4(a).
            (10) The term ``Strategy'' means the National Aeronautics 
        Strategy developed pursuant to section 4(b)(1).
            (11) The term ``United States-owned company'' means a 
        company or other business entity the majority ownership or 
        control of which is by United States citizens.

SEC. 4. AERONAUTICAL TECHNOLOGY PROGRAM.

    (a) Establishment.--The President shall establish an Aeronautical 
Technology Program which shall--
            (1) provide for interagency coordination of Federal 
        research and development programs relating to aeronautical 
        technologies and related manufacturing technologies;
            (2) provide a mechanism for private industry comment and 
        guidance regarding the cost-effectiveness and commercial 
        practicability of existing and proposed Federal research and 
        development programs relating to aeronautical technologies and 
        related manufacturing technologies;
            (3) promote, to the maximum extent practicable, the 
        transfer and conversion to commercial applications of 
        aeronautical technologies developed for national security 
        purposes;
            (4) coordinate and expand existing Federal research and 
        development programs relating to subsonic and supersonic 
        aeronautics, with particular focus on government-industry 
        cooperative programs to develop large civil aircraft beyond the 
        financial means of any single company;
            (5) assist the United States civil aviation manufacturing 
        industry in developing an Aeronautical Technology Consortium 
        for the purpose of providing Federal assistance to industry-led 
        joint ventures established for research, development, design, 
        and commercialization of aeronautical technologies and related 
        manufacturing technologies applicable to large civil aircraft; 
        and
            (6) establish other goals and priorities for Federal 
        research and development programs relating to aeronautical 
        technologies and related manufacturing technologies.
    (b) National Aeronautics Strategy.--
            (1) In general.--The President, acting through the 
        Coordinating Committee, shall develop a National Aeronautics 
        Strategy to implement the Program. The Strategy shall contain 
        specific recommendations for a 5-year national effort, to be 
        submitted to the Congress within 6 months after the date of 
        enactment of this Act.
            (2) Contents of strategy.--The Strategy shall--
                    (A) establish the specific goals and priorities for 
                the Program for the fiscal year in which the Strategy 
                is submitted and the succeeding 4 fiscal years;
                    (B) set forth the role of each Federal agency and 
                department in implementing the Program;
                    (C) describe the levels of Federal funding for each 
                agency and specific research, development, and 
                commercialization activities required to achieve such 
                goals and priorities;
                    (D) take into account the recommendations of the 
                Advisory Committee established in section 6; and
                    (E) consider and use, as appropriate, reports and 
                studies conducted by Federal agencies and departments, 
                the National Research Council, or other entities.
            (3) Federal agencies and departments to be addressed.--The 
        Secretary shall address, where appropriate, the relevant 
        programs and activities of--
                    (A) the Department of Defense, particularly the 
                Department of the Air Force, the Department of the 
                Navy, and the Defense Advanced Research Projects 
                Agency;
                    (B) the Departments of Commerce, particularly the 
                National Institute of Standards and Technology;
                    (C) the Department of Transportation, particularly 
                the Federal Aviation Administration;
                    (D) the National Aeronautics and Space 
                Administration;
                    (E) the National Science Foundation;
                    (F) the Federal laboratories; and
                    (G) such other agencies and departments as the 
                President or the Coordinating Committee considers 
                appropriate.
    (c) Coordinating Committee.--
            (1) Authority; composition.--The Program shall be 
        administered by an Aeronautical Technology Coordinating 
        Committee composed of the following officials:
                    (A) The Director, who shall be chairperson.
                    (B) The Secretary of Defense.
                    (C) The Secretary of Commerce.
                    (D) The Secretary of Transportation.
                    (E) The Administrator of the National Aeronautics 
                and Space Administration.
                    (F) The Director of the National Science 
                Foundation.
            (2) Functions.--The Coordinating Committee shall--
                    (A) serve as the lead entity responsible for 
                implementation of the Program;
                    (B) coordinate all Federal research and development 
                programs relating to aeronautical technologies and 
                related manufacturing technologies;
                    (C) consult regularly with and seek recommendations 
                from the Advisory Committee established by section 6;
                    (D) consult with academic, State, industry, and 
                other appropriate groups conducting research on and 
                using aeronautical technologies; and
                    (E) submit to the Congress an annual report, along 
                with the President's annual budget request, describing 
                the implementation of the Program.

SEC. 5. AERONAUTICAL TECHNOLOGY CONSORTIUM.

    (a) In General.--Under the Program, the Coordinating Committee 
shall provide assistance to an Aeronautical Technology Consortium, 
which shall consist of all eligible firms that--
            (1) are engaged in research, development, testing, design, 
        demonstration, or production of aeronautical technology 
        applicable to the production of large civil aircraft;
            (2) are selected by the Coordinating Committee, through the 
        Director, on the basis of the criteria specified under 
        subsection (e); and
            (3) are necessary to enable the Consortium to achieve its 
        purpose as described under subsection (c).
    (b) Eligible Firms.--For purposes of this section, the term 
``eligible firm'' means a company or other business entity (including a 
consortium of such companies or other business entities, as determined 
by the Secretary of Commerce) that, as determined by such Secretary--
            (1) conducts a significant level of its research, 
        development, engineering, design, and manufacturing activities 
        in the United States; and
            (2) either--
                    (A) is a United States-owned company; or
                    (B) is a company incorporated in the United States 
                and has a parent company which is incorporated in a 
                country the government of which--
                            (i) affords United States-owned companies 
                        opportunities, comparable to those afforded any 
                        other company, to participate in research and 
                        development consortia to which the government 
                        of that country provides funding directly or 
                        provides finding indirectly through 
                        international organizations or agreements; and
                            (ii) affords adequate and effective 
                        protection for the intellectual property rights 
                        of United States-owned companies.
    (c) Purpose.--The purpose of the Consortium is to conduct industry-
led joint ventures, including studies, relating to--
            (1) manufacturing technologies applicable to the production 
        of large civil aircraft;
            (2) the aeronautical infrastructure, including next-
        generation wind tunnels and associated technology, and test 
        beds for aeronautical systems and subsystems;
            (3) the transfer and conversion of aeronautical 
        technologies developed for national security purposes to 
        commercial applications for large civil aircraft;
            (4) subsonic aeronautical technologies applicable to the 
        development and production of large civil aircraft;
            (5) supersonic aeronautical technologies applicable to the 
        development and production of large civil aircraft; and
            (6) environmental technologies necessary for aeronautical 
        competitiveness, including technologies that limit or reduce 
        noise and air pollution.
    (d) Assistance To Be Provided.--In providing assistance to the 
Consortium, the Coordinating Committee, acting through the Director, 
shall--
            (1) provide financial and other assistance to the United 
        States civil aviation manufacturing industry in the formation 
        of the Consortium;
            (2) support the Consortium, and such subordinate joint 
        ventures as the Consortium may establish, by making available 
        equipment, facilities, and personnel;
            (3) aid the Consortium, and such subordinate joint ventures 
        as the Consortium may establish, by means of grants, 
        cooperative agreements, contracts, and provision of 
        organizational and technical advice;
            (4) enter into contracts and cooperative agreements in 
        support of the Consortium with independent research 
        organizations, institutions of higher education, and agencies 
        of State and local governments;
            (5) involve the Federal laboratories in the Consortium, 
        where appropriate, using among other authorities the 
        cooperative research and development agreements provided for 
        under section 12 of the Stevenson-Wydler Technology Innovation 
        Act of 1980 (15 U.S.C. 3710a); and
            (6) carry out, in a manner consistent with this section, 
        such other cooperative research activities with the Consortium 
        and joint ventures as may be authorized by law or assigned to 
        the Coordinating Committee by the President.
    (e) Selection of Consortium Participants.--The criteria for 
selection of industry participants in the Consortium, as referred to in 
subsection (a)(2), are as follows:
            (1) The extent of present participation of the eligible 
        firm in Federal research and development programs relating to 
        aeronautical technologies and related manufacturing 
        technologies.
            (2) The extent of present manufacturing activity of the 
        eligible firm relating to the development and production of 
        large civil aircraft, engines, advanced materials, avionics, 
        and other related components.
            (3) The extent of present manufacturing activity of the 
        eligible firm relating to aeronautical technologies developed 
        for national security purposes that may have commercial 
        applications for large civil aircraft.
            (4) The technical excellence of the eligible firm.
            (5) The extent of financial commitment of the eligible firm 
        to the Consortium.
            (6) Such other criteria that the Director prescribes.
    (f) Charter; Operating Plan.--The Consortium shall have--
            (1) a charter, agreed to by all industry participants in 
        the Consortium, that meets requirements established by the 
        Coordinating Committee; and
            (2) an annual operating plan that is developed in 
        consultation with the Coordinating Committee and the Advisory 
        Committee established in section 6.
    (g) Financial Commitment of Industry Participants.--
            (1) In general.--The Director shall ensure that, to the 
        maximum extent the Director determines to be practicable, the 
        total amount of the funds provided by the Federal Government to 
        the Consortium does not exceed the total amount provided by the 
        industry participants in the Consortium.
            (2) Authority to exceed 50 percent federal funding.--
        Nothing in this subsection shall be construed to prohibit the 
        Federal Government from providing greater than 50 percent of 
        the funds for any individual joint venture, project, or program 
        where the Director determines such funding to be consistent 
        with the goals of the Program.
            (3) Consideration of in-kind contributions.--The Director 
        shall prescribe regulations to provide for consideration of in-
        kind contributions by industry participants in the Consortium 
        and joint ventures for the purpose of determining the share of 
        the funds that have been or are being provided by such 
        participants.
    (h) Merit Review.--No contract or other award for a research 
project may be made under this section until the research project in 
question has been subject to a merit review, and, in the opinion of the 
reviewers appointed by the Director, has been shown to have scientific 
and technical merit.
    (i) Oversight of Consortium Activities.--The Coordinating 
Committee, acting through the Director, shall take such actions as are 
necessary and appropriate to ensure that the Consortium's activities 
help to achieve the purposes of this Act, including--
            (1) prescribing regulations for the purposes of this 
        section;
            (2) establishing procedures for the use by the Coordinating 
        Committee of funds authorized to a particular Federal agency or 
        department that is participating in the Consortium;
            (3) establishing procedures regarding financial reporting 
        and auditing to ensure that contracts and other awards are used 
        for the purposes specified in this section and are in 
        accordance with sound accounting practices;
            (4) monitoring how technologies developed through the 
        Consortium are used, and reporting to the Congress on the 
        extent of any overseas transfer of those technologies;
            (5) assuring that the recommendations of the Advisory 
        Committee established in section 6 are considered routinely in 
        carrying out the responsibilities of the Coordinating Committee 
        under this Act; and
            (6) providing for the expeditious and timely transfer of 
        technology developed and owned by the Consortium to the 
        participants in the Consortium.
    (j) Export of Aeronautical Technology.--Any export of materials, 
equipment, and technology developed by the Consortium in whole or in 
part with financial assistance provided under this section shall be 
subject to the Export Administration Act of 1979 (50 U.S.C. App. 2401 
et seq.) and shall not be subject to the Arms Export Control Act.
    (k) Freedom of Information Act.--Section 552 of title 5, United 
States Code, shall not apply to the following information obtained by 
the Federal Government on a confidential basis in connection with the 
activities of any industry participant in the Consortium:
            (1) Information on the business operation of any industry 
        participant in the Consortium.
            (2) Intellectual property, trade secrets, and technical 
        data possessed or developed by any industry participant in the 
        Consortium.
    (l) Intellectual Property.--
            (1) Disclosure limitations.--Notwithstanding any other 
        provision of law, intellectual property, trade secrets, and 
        technical data owned and developed by the Consortium or any 
        industry participant in the Consortium may not be disclosed by 
        any officer or employee of the Federal Government except in 
        accordance with a written agreement between the owner or 
        developer and the Director.
            (2) Title to and licensing of inventions and patents.--
        Title to any invention or patent arising from assistance 
        provided under this section shall vest in a company or 
        companies incorporated in the United States. The Federal 
        Government may reserve a nonexclusive, nontransferable, 
        irrevocable paid-up license, to have practiced for or on behalf 
        of the Federal Government, in connection with any such 
        invention or patent, but shall not, in the exercise of such 
        license publicly disclose proprietary information related to 
        the license. Title to any such invention or patent shall not be 
        transferred or passed, except to any company incorporated in 
        the United States, until the expiration of the first patent 
        obtained in connection with such invention. For purposes of 
        this paragraph, the term ``invention or patent'' means an 
        invention patentable under title 35, United States Code, or any 
        patent on such an invention.
            (3) Licensing to companies.--Nothing in this subsection 
        shall be construed to prohibit the licensing, to any company, 
        of intellectual property rights arising from assistance 
        provided under this section.
    (m) Application of National Cooperative Research Act.--The National 
Cooperative Research Act of 1984 (P.L. 98-462; 15 U.S.C. 4301 note) 
shall apply to the Consortium in the conduct of the activities of the 
Consortium under this Act.

SEC. 6. AERONAUTICAL TECHNOLOGY ADVISORY COMMITTEE.

    (a) Establishment.--There is established an Aeronautical Technology 
Advisory Committee (hereafter in this Act referred to as the ``Advisory 
Committee'').
    (b) Functions.--The Advisory Committee shall advise the 
Coordinating Committee and the Consortium on--
            (1) the strategy and other appropriate goals and priorities 
        for the Program, and how best to achieve those goals;
            (2) the operating plan of the Consortium;
            (3) the annual progress of the Program and the Consortium 
        in meeting the requirements of section 4(a) and, in the first 5 
        years, the strategy;
            (4) organizational and programmatic reforms which would 
        improve the effectiveness of Federal research and development 
        programs relating to aeronautical technologies and related 
        manufacturing technologies in promoting the competitiveness of 
        the United States civil aviation manufacturing industry;
            (5) mechanisms for private industry comment and guidance 
        regarding the cost-effectiveness and commercial practicability 
        of existing and proposed Federal research and development 
        programs relating to aeronautical technologies and related 
        manufacturing technologies;
            (6) policies and mechanisms to promote the transfer and 
        conversion to commercial applications of aeronautical 
        technologies developed for national security purposes; and
            (7) other goals and priorities for Federal research and 
        development programs relating to aeronautical technologies and 
        related manufacturing technologies.
    (c) Membership.--The Advisory Committee shall be composed of 12 
members, who shall be appointed by the President from among individuals 
who, because of their experience and accomplishments in the field of 
aeronautics and related technological and scientific fields, are 
exceptionally qualified to analyze and recommend policy relating to 
aeronautical technology research and development. Membership of the 
Advisory Committee shall be composed of representatives of--
            (1) large civil aircraft manufacturing companies;
            (2) aircraft engine manufacturing companies;
            (3) advanced materials companies;
            (4) avionics and other systems and subsystems companies;
            (5) other subcontractor firms engaged in aeronautical 
        technology research, design, development, and production; and
            (6) Federal laboratories, universities, and independent 
        research institutes.
    (d) Terms of Membership.--Each member of the Advisory Committee 
shall be appointed for a term of 3 years, except that of members first 
appointed, 4 shall be appointed for a term of 1 year, 4 shall be 
appointed for a term of 2 years, and 4 shall be appointed for a term of 
3 years, as designated by the President at the time of the appointment. 
A member of the Advisory Committee may serve after the expiration of 
the member's term until a successor has taken office.
    (e) Chairperson.--The President shall appoint 1 member of the 
Advisory Committee to serve as chairperson.
    (f) Quorum.--7 members of the Advisory Committee shall constitute a 
quorum.
    (g) Meetings.--The Advisory Committee shall meet at least quarterly 
at the call of the chairperson or one-third of its members, and at the 
call of the Coordinating Committee.
    (h) Compensation and Expenses.--
            (1) No compensation for members.--Each member of the 
        Advisory Committee shall serve without compensation.
            (2) Travel expenses authorized.--While away from their 
        homes or regular places of business in performance of the 
        duties of the Advisory Committee, members of the Advisory 
        Committee shall be allowed travel expenses in accordance with 
        subchapter I of chapter 57 of title 5, United States Code.
    (i) Federal Advisory Committee Act.--Section 14 of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the Advisory 
Committee.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Office of Science 
and Technology Policy, to carry out the provisions of this Act, such 
sums as may be necessary for the fiscal years 1994 and 1995.

                                 <all>

HR 1675 IH----2
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