I
103D CONGRESS
1ST SESSION
H. R. 1208
To establish the Civilian Technology Corporation to provide financial support
for precommercial research and development in technologies that are
significant to the technology base of the United States.
IN THE HOUSE OF REPRESENTATIVES
MARCH 3, 1993
Mr. SANGMEISTER introduced the following bill; which was referred to the
Committee on Science, Space, and Technology
A BILL
To establish the Civilian Technology Corporation to provide
financial support for precommercial research and devel-
opment in technologies that are significant to the tech-
nology base of the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Civilian Technology
Corporation Act of 1993’’.
SEC. 2. ESTABLISHMENT OF CORPORATION.
(a) IN GENERAL.—There shall be established a Civil-
ian Technology Corporation. The Corporation shall be op-
erated for the purpose of providing financial support for
precommercial research and development into technologies
that are significant to the technology base of the United
States.
(b) CORPORATION NOT AN ESTABLISHMENT OF THE
UNITED STATES.—The Corporation shall not be an agen-
cy or establishment of the United States.
(c) PRIVACY ACT.—Notwithstanding subsection (b),
the Corporation shall be treated as an agency for the pur-
poses of section 552a of title 5, United States Code.
SEC. 3. INCORPORATION.
The board of directors of the Corporation first ap-
pointed shall be the incorporators and shall take all nec-
essary actions to establish the Corporation, including the
filing of articles of incorporation.
SEC. 4. DIRECTORS, OFFICERS, AND EMPLOYEES.
(a) BOARD OF DIRECTORS.—
(1) APPOINTMENT
AND
NUMBER.—The Cor-
poration shall have a Board consisting of 9 individ-
uals appointed by the President with the advice and
consent of the Senate.
(2) QUALIFICATIONS.—The directors of the
Corporation shall have the following qualifications:
(A) Not more than 5 directors shall be
members of the same political party.
(B) The directors shall have technical,
business, or scientific expertise in civil research
and development or expertise in the area of eco-
nomics.
(C) Each director shall be a United States
Citizen.
(3) NO CONFLICT OF INTEREST.—A director
may not participate in the deliberations on, or vote
on, a matter regarding an application, claim, or
other matter pending before the Corporation, if, to
his knowledge, he, his spouse, minor child, parent,
sibling, partner, or organization, other than the Cor-
poration, in which he is serving as an officer, direc-
tor, trustee, partner, or employee, or any person
with whom he is negotiating or has any arrangement
concerning prospective employment, has a financial
interest in the matter. A director who violates this
paragraph shall be subject to removal from the
Board, but such a violation shall not impair, nullify,
or otherwise affect the validity of any otherwise law-
ful action by the Corporation in which such director
participated.
(4) COMPENSATION.—The compensation of the
Board shall be determined by the President with the
advice and consent of the Senate.
(5) TERMS AND VACANCIES.—Members of the
Board shall serve terms of 5 years, and may serve
a maximum of two terms. Any vacancy in the mem-
bership of the Board shall be filled in the manner
set forth in paragraph (1).
(6) NO FEDERAL EMPLOYEES.—An individual
who is a member of the Congress, or an officer or
employee of the United States, may not serve on the
Board.
(7) CHAIRPERSON
AND
VICE-CHAIRPERSON.—
The Chairperson and Vice-Chairperson of the Board
shall be selected by the President. The position of
Chairperson shall be a full-time position and the in-
dividual who serves as Chairperson may not serve in
any other salaried position.
(8) BYLAWS.—The Board is empowered to
adopt and amend bylaws governing the operation of
the Corporation. Such bylaws shall not be inconsist-
ent with the provisions of this Act or the articles of
incorporation of the Corporation.
(b) OFFICERS AND EMPLOYEES.—
(1) APPOINTMENT.—The Board shall appoint a
chief executive officer, who shall have the authority
to appoint such other officers and employees as he
deems necessary to carry out the provisions of this
Act and the functions of the Corporation.
(2) QUALIFICATIONS.—Officers and employees
of the Corporation shall have technical, business, or
administrative expertise in civil research and devel-
opment or expertise in the area of economics.
(3) NO CONFLICT OF INTEREST.—An officer or
employee may not participate in a matter regarding
an application, claim, or other matter pending before
the Corporation, if, to his knowledge, he, his spouse,
minor child, partner, or organization, other than the
Corporation, in which he is serving as an officer, di-
rector, trustee, partner, or employee, or any person
with whom he is negotiating or has any arrangement
concerning prospective employment, has a financial
interest in the matter. An officer or employee who
violates this paragraph shall be subject to termi-
nation, but such a violation shall not impair, nullify,
or otherwise affect the validity of any otherwise law-
ful action by the Corporation in which such officer
or employee participated.
(4) COMPENSATION.—The rates of compensa-
tion for all officers and employees shall be fixed by
the chief executive officer.
(5) TENURE.—Officers and employees shall
serve at the pleasure of the Board.
SEC. 5. GENERAL POWERS.
The Corporation shall have the power to do the fol-
lowing:
(1) Have succession in the name of the Cor-
poration.
(2) Adopt, alter, and use a corporate seal.
(3) Sue and be sued in the name of the Cor-
poration.
(4) Make and carry out contracts.
(5) Exercise such other incidental powers not
inconsistent with this Act that are necessary or ap-
propriate to carry out the purposes and functions of
the Corporation, including the usual powers con-
ferred upon a corporation by the District of Colum-
bia Business Corporation Act.
SEC. 6. CIVILIAN TECHNOLOGY DEVELOPMENT FUND.
(a) ESTABLISHMENT
OF FUND.—There is estab-
lished in the Treasury of the United States the Civilian
Technology Development Fund. The Fund shall be admin-
istered by the Corporation in order to carry out the pur-
poses of this Act. The Fund shall consist of the amounts
appropriated under subsection (b).
(b) AUTHORIZATION OF APPROPRIATION.—There is
authorized to be appropriated $5,000,000,000 to be depos-
ited into the Fund and to remain available until expended.
(c) EXPENDITURES FROM THE FUND.—
(1) IN GENERAL.—Amounts in the Fund shall
be made available without fiscal year limitation to
the Corporation for the purposes of providing finan-
cial support, through direct investment, loans, li-
censes, equity positions, and joint venture partner-
ships, to United States based consortia, private
United States businesses with promising research
agendas, and educational institutions participating
in joint research projects with private United States
businesses, for precommercial research and develop-
ment in technologies that are significant to the tech-
nology base of the United States. In providing such
financial support, the Corporation shall—
(A) invest in areas where the social rate of
return is expected to be high but where individ-
ual firms or consortia are unlikely to invest be-
cause the economic rate of return is expected to
be low;
(B) invest in precommercial areas where
the social rate of return on investments is ex-
pected to be higher than the expected rate of
return in the private sector, including research
and development projects that appear to have
the potential to enhance productivity and long-
term economic growth;
(C) invest exclusively in projects that were
initiated by industry and that include industry
participation; and
(D) except as provided in paragraph
(2)(B), invest in a project only if the Corpora-
tion shall be obligated to contribute not more
than 50 percent of the cost of such project.
(2) BOARD APPROVAL.—
(A) IN GENERAL.—No expenditures shall
be made under this subsection unless approved
by a majority vote of the Board following a con-
sideration of the factors referred to in para-
graph (1).
(B) INCREASED CONTRIBUTION.—Notwith-
standing paragraph (1)(D), the Corporation
may contribute more than 50 percent of the
cost of a project if the Board approves such a
contribution by a two-thirds vote.
(d) INVESTMENT OF EXCESS FUNDS.—If the Cor-
poration determines that the amount of money in the
Fund exceeds the current requirements of the Corpora-
tion, the Corporation may direct the Secretary of the
Treasury to invest such amounts as the Corporation
deems advisable, for such period as the Corporation di-
rects, in obligations of the United States, in obligations
guaranteed by the United States Government, or in such
other obligations or securities of the United States as the
Secretary of the Treasury deems appropriate.
SEC. 7. CONSULTATION WITH FEDERAL AGENCIES AND DE-
PARTMENTS, AND WITH PRIVATE PARTIES.
(a) CONSULTATION WITH FEDERAL AGENCIES.—In
carrying out this Act, the Board and the Corporation shall
consult frequently with the following Federal agencies and
departments: the Office of Management and Budget, the
Department of Energy, the Department of Defense, the
National Science Foundation, and the Office of Science
and Technology Policy.
(b) CONSULTATION WITH PRIVATE PARTIES.—In
carrying out this Act, the Board and the Corporation shall
solicit comments from private parties, including represent-
atives of both industry and labor organizations.
SEC. 8. REVIEW OF CORPORATION BY BLUE RIBBON
PANEL.
(a) APPOINTMENT OF PANEL.—Not later than 90
days after the President and the Congress have received
the report under section 10(b), the President, the Senate,
and the House of Representatives shall jointly appoint a
panel to carry out the review referred to in subsection (b).
The President shall appoint 3 members of the panel, the
Senate shall appoint 3 members of the panel, and the
House of Representatives shall appoint 3 members of the
panel.
(b) REVIEW BY PANEL.—Not later than 9 years after
the date of enactment of this Act, the panel shall conduct
a review of the performance of the Corporation to deter-
mine whether the Corporation—
(1) has had an overall positive effect on the
ability of the ability of United States industry to
commercialize and adopt new technologies;
(2) has invested in projects that exhibited a
high potential social rate of return if successful;
(3) has elicited strong, continuing support in
the private sector, particularly as reflected in the
willingness of firms to fund cooperative research and
development projects carried out under the sponsor-
ship of the Corporation; and
(4) should be terminated.
(c) REPORT.—Upon completion of the review referred
to in subsection (b), the panel shall submit a report to
the President, the Congress, and the Corporation. If the
panel determines that the Corporation should be termi-
nated, the report shall include a recommended termination
date.
SEC. 9. AUDIT BY COMPTROLLER GENERAL.
The Comptroller General of the United States is au-
thorized to audit the financial transactions of the Corpora-
tion, including the operations of the Fund. For the pur-
poses of carrying out such an audit, the Comptroller Gen-
eral shall have access to all books, records, and property
belonging to, or in the possession of, the Corporation or
a person or entity which has entered into a financial rela-
tionship with the Corporation, which pertain to the Cor-
poration and which are necessary to carry out the audit.
The Comptroller General shall make a report of each such
audit to the Congress and the President.
SEC. 10. REPORTS.
(a) INITIAL REPORT.—The Corporation shall, after
the completion of the 4th year after the date of enactment
of this Act, submit a report to the President and the Con-
gress concerning the activities of the Corporation in carry-
ing out the purposes of this Act. Such report shall include
a description of the activities, expenditures, and invest-
ments of the Corporation, an analysis of the social rate
of return of projects in which the Corporation partici-
pated, and projections of future activities, expenditures,
and investments.
(b) PREREVIEW REPORT.—The Corporation shall,
not later than 8 years after the date of enactment of this
Act, submit a report to the President and the Congress.
Such report shall contain the type of information referred
to in subsection (a).
SEC. 11. ADMINISTRATION.
(a) HEARINGS.—The Board may hold such hearings,
sit and act at such times and places, take such testimony,
receive such evidence, and publish or otherwise distribute
so much of its proceedings and reports as it may deem
advisable.
(b) OFFICE SPACE AND EQUIPMENT.—The Board
may acquire, furnish, and equip such office space as it
determines necessary.
(c) MAILS.—The Board is authorized to use the Unit-
ed States mails in the same manner and upon the same
conditions as Federal departments and agencies.
(d) NECESSARY EXPENSES.—The Board may incur
such necessary expenses and exercise such powers as are
consistent and reasonably required to perform its func-
tions.
(e) RECORDS.—To the extent permitted by law, all
appropriate records and papers of the Board shall be made
available for public inspection.
(f) AID FROM FEDERAL AGENCIES.—Upon the re-
quest of the Board, the head of a Federal department or
agency is authorized to—
(1) furnish to the Board such information as
the Board deems necessary for carrying out its func-
tions and as is available to the agency; and
(2) detail for temporary duty, on a reimburs-
able basis, such personnel as the Board deems nec-
essary to carry out its functions.
(g) MEETINGS.—
(1) NUMBER.—The Board shall meet quarterly
each year, and may meet additional times at the call
of the Chairperson.
(2) QUORUM.—A majority of the members of
the Board shall constitute a quorum.
(3) OPEN
TO
PUBLIC.—All meetings of the
Board held to conduct official business of the Cor-
poration shall be open to the public following reason-
able public notice, except that the Board may close
a meeting to the public if the Board determines by
a majority vote, at a meeting open to the public,
that it is necessary to close such meeting.
SEC. 12. MISCELLANEOUS PROVISIONS.
(a) JURISDICTION.—
(1) IN GENERAL.—Whenever the Corporation is
a party to any civil action under this Act, such ac-
tion shall be deemed to arise under the laws of the
United States. No attachment or execution may be
issued against the Corporation, or any property
thereof, prior to entry of final judgment.
(2) CITIZENSHIP OF CORPORATION.—The Cor-
poration shall be deemed to be a citizen only of the
District of Columbia for the purpose of determining
the original jurisdiction of the district courts of the
United States in civil actions to which the Corpora-
tion is a party.
(b) DISTRICT OF COLUMBIA LAWS RELATING TO
LEASES AND CONTRACTS.—Leases and contracts entered
into by the Corporation, regardless of the place where such
leases or contracts may be executed, shall be governed by
the laws of the District of Columbia.
(c) BUSINESS ACTIVITY AND QUALIFICATION; DIS-
TRICT OF COLUMBIA AS PRINCIPAL OFFICE AND PLACE
OF BUSINESS FOR PROCESS.—The Corporation shall be
deemed to be qualified to do business in each State in
which it performs any activity authorized under this Act.
The Corporation shall accept service of process addressed
by certified mail to the secretary of the Corporation at
its principal office and place of business in Washington,
District of Columbia.
SEC. 13. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘Board’’ means the board of di-
rectors of the Civilian Technology Corporation.
(2) The term ‘‘Corporation’’ means the Civilian
Technology Corporation established under sections 2
and 3.
(3) The term ‘‘Fund’’ means the Civilian Tech-
nology Development Fund established by section 6.
(4) The term ‘‘panel’’ means the panel estab-
lished by section 8.
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