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annually report to the Congress, at the time of the Presi-
dent’s annual budget request to Congress, on—
‘‘(A) progress made in achieving the purposes of
the Partnership described in subsection (a), using cri-
teria and procedures established under paragraph
(1)(B)(iii) of this subsection;
‘‘(B) changes proposed to the 5-year plan;
‘‘(C) performance in adhering to schedules; and
‘‘(D) 
any 
recommendations 
for 
legislative
changes necessary to enhance the Partnership.
The report under this paragraph submitted at the end of
the fourth year of operation of the Partnership shall include
recommendations on whether to terminate the Partnership
or extend it for an additional period not to exceed 5 years.’’.
(b) DEFINITIONS.—The National Institute of Stand-
ards and Technology Act (15 U.S.C. 271 et seq.) is amended
by inserting after section 1 the following new section:
‘‘SEC. 1A. As used in this Act—
‘‘(1) the terms ‘advanced manufacturing tech-
nology’, ‘modern technology’, ‘advanced workplace
practices’, and ‘sustainable economic growth’ have the
meanings given such terms in section 4 of the Steven-
son-Wydler Technology Innovation Act;
‘‘(2) the term ‘independent research organiza-
tions’ means nonprofit organizations organized pri-
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marily for the purpose of conducting or managing re-
search activities;
‘‘(3) the term ‘source reduction’ has the meaning
given that term in section 6603 of the Pollution Pre-
vention Act of 1990 (42 U.S.C. 13102);
‘‘(4) the term ‘State’ means any of the several
States, the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, or any other territory or possession of the
United States; and
‘‘(5) the term ‘United States’ means the several
States, the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, and any other territory or possession of the
United States.’’.
SEC. 213. ADDITIONAL AMENDMENTS TO THE STEVENSON-
WYDLER TECHNOLOGY INNOVATION ACT.
The Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3701 et seq.) is amended—
(1) by inserting after section 4 the following new
title heading:
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‘‘TITLE I—DEPARTMENT OF COM-
MERCE AND RELATED PRO-
GRAMS’’;
(2) by redesignating section 5 as section 101;
(3) by redesignating sections 6 through 10 as sec-
tions 105 through 109, respectively;
(4) by striking section 21;
(5) by redesignating sections 16, 17, 18, 19, 20,
and 22 as sections 110 through 115, respectively;
(6) by inserting after section 115 (as redesig-
nated by paragraph (5) of this subsection) the follow-
ing new title heading:
‘‘TITLE II—FEDERAL
TECHNOLOGY TRANSFER’’;
(7) by redesignating sections 11 through 15 as
sections 201 through 205, respectively;
(8) by redesignating section 23 as section 206;
(9) in section 4—
(A) by striking ‘‘section 5’’ and inserting in
lieu thereof ‘‘section 101’’;
(B) by striking ‘‘section 5(b)(1)’’ and in-
serting in lieu thereof ‘‘section 101(b)(1)’’;
(C) in paragraphs (4) and (6), by striking
‘‘section 6’’ and ‘‘section 8’’ each place they ap-
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pear and inserting in lieu thereof ‘‘section 105’’
and ‘‘section 107’’, respectively; and
(D) in paragraph (13), by striking ‘‘section
6’’ and inserting in lieu thereof ‘‘section 105’’;
(10) in section 108 (as redesignated by para-
graph (3) of this subsection) by striking ‘‘section
6(a)’’ and inserting in lieu thereof ‘‘section 106(a)’’;
by striking ‘‘section 6(b)’’ and inserting in lieu there-
of ‘‘section 106(b)’’; and by striking ‘‘section 6(c)(3)’’
and inserting in lieu thereof ‘‘section 106(c)(3)’’;
(11) in section 109(d) (as redesignated by para-
graph (2) of this subsection) by striking ‘‘section 7, 9,
11, 15, 17, or 20 of’’;
(12) in section 201(i) (as redesignated by para-
graph (7) of this subsection) by inserting ‘‘loan, lease,
or’’ after ‘‘may’’; and by inserting ‘‘Actions taken
under this subsection shall not be subject to Federal
requirements on the disposal of property.’’ after ‘‘ac-
tivities.’’;
(13) in section 202(b) (as redesignated by para-
graph (7) of this subsection) by striking ‘‘section
14(a)(1)(B) (i), (ii), and (iv)’’ and inserting in lieu
thereof ‘‘section 204(a)(1)(B) (i), (ii), and (iv)’’;
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(14) in section 204(a)(1) (as redesignated by
paragraph (7) of this subsection) by striking ‘‘section
12’’ and inserting in lieu thereof ‘‘section 202’’;
(15) in section 115 (as redesignated by para-
graph (5) of this subsection) by striking ‘‘Act (other
than sections 11, 12, and 13)’’ and inserting in lieu
thereof ‘‘title’’;
(16) in section 206 (as redesignated by para-
graph (7) of this subsection)—
(A) by striking ‘‘section 12(d)(2)’’ in the in-
troductory matter of subsection (a) and inserting
in lieu thereof ‘‘section 202(d)(2)’’;
(B) by striking ‘‘section 11(b)’’ in sub-
section (a)(2) and inserting in lieu thereof ‘‘sec-
tion 201(b)’’; and
(C) by striking ‘‘section 6(d)’’ in subsection
(b) and inserting in lieu thereof ‘‘section
105(d)’’;
(17) in section 112 (as redesignated by para-
graph (5) of this subsection)—
(A) in the section heading, by striking
‘‘CONFERENCE’’ and inserting in lieu
thereof ‘‘CONFERENCES’’;
(B) by striking ‘‘Not later than’’ through
‘‘shall convene a conference’’ and inserting in
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lieu thereof ‘‘The Secretary, through the Under
Secretary, in consultation with other appro-
priate officials, may convene conferences’’; and
(C) by striking ‘‘such conference shall’’ and
in insert in lieu thereof ‘‘any such conferences
shall, whenever appropriate,’’;
(18) by adding at the end of section 201 (as re-
designated by paragraph (7) of this subsection) the
following new subsection:
‘‘(j) ADDITIONAL TECHNOLOGY TRANSFER MECHA-
NISMS.—In addition to the technology transfer mechanisms
set forth in this section and section 202, the heads of Federal
departments and agencies also may transfer technologies
through the technology transfer, extension, and deployment
programs of the Department of Commerce and the Depart-
ment of Defense.’’; and
(19) in section 101(c) (as redesignated by para-
graph (2) of this subsection)—
(A) by striking ‘‘and’’ at the end of para-
graph (14);
(B) by striking the period at the end of
paragraph (15) and inserting in lieu thereof ‘‘;
and’’; and
(C) by adding at the end the following new
paragraph:
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‘‘(16) engage in joint projects with any person or per-
sons on matters within the authority of the Department of
Commerce, accept temporary personnel from industrial
partners, and receive cash donations in the course of such
joint projects, and in conjunction with the planning and
operation of such joint projects hold private meetings of
matters of mutual interest with groups of interested persons,
in order to protect sensitive information about United
States industry and to ensure industry participation in
such joint projects.’’.
SEC. 214. MANUFACTURING TECHNOLOGY CENTERS.
(a) AMENDMENTS.—(1) Section 25(a) of the National
Institute of Standards and Technology Act (15 U.S.C.
278k(a)) is amended by striking ‘‘and’’ at the end of para-
graph (4); by striking the period at the end of paragraph
(5) and inserting in lieu thereof a semicolon; and by insert-
ing after paragraph (5) the following new paragraphs:
‘‘(6) the active dissemination of information on
advanced workplace practices and available education
and training programs, and the encouragement of
companies to train workers in the effective use of
modern technologies and advanced manufacturing
technologies; and
‘‘(7) demonstration projects in which Centers
work with States, local governments, community de-
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velopment organizations, worker and business organi-
zations, and community banks to create a business
climate supportive of high-performance manufactur-
ing.’’.
(2) Section 25(b) of the National Institute of Stand-
ards and Technology Act (15 U.S.C. 278k(b)) is amended
by striking ‘‘and’’ at the end of paragraph (2); by redesig-
nating paragraph (3) as paragraph (4); and by inserting
after paragraph (2) the following new paragraph:
‘‘(3) assessments of client companies’ moderniza-
tion needs, assistance in implementing quality proc-
esses, advice on pollution minimization and source re-
duction, and, where needed, cooperation with training
institutions to ensure that employees, particularly
production workers, receive training in the most effec-
tive use of modern technologies and advanced work-
place practices; and’’.
(3) Section 25(c) of the National Institute of Stand-
ards and Technology Act (15 U.S.C. 278k(c)) is amended—
(A) in paragraph (1) by striking ‘‘for a period
not to exceed six years’’; and
(B) in paragraph (5) by striking ‘‘which are de-
signed’’ and all that follows through the period at the
end of the paragraph and inserting in lieu thereof ‘‘to
a maximum of one-third Federal funding. Each Cen-
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ter which receives financial assistance under this sec-
tion shall be evaluated during its sixth year of oper-
ation, and at least triennially thereafter as the Sec-
retary considers appropriate, by an evaluation panel
appointed by the Secretary in the same manner as
was the evaluation panel previously appointed. The
Secretary shall not provide funding for additional
years of the Center’s operation unless the most recent
evaluation is positive and the Secretary finds that
continuation of funding furthers the purposes of this
section.’’.
(4) Section 25 of the National Institute of Standards
and Technology Act (15 U.S.C. 278k) is amended by adding
at the end the following new subsections:
‘‘(e) In addition to any assistance provided or con-
tracts entered into with a Center under this section, the Di-
rector is authorized to make separate and smaller awards,
through a competitive process, to nonprofit organizations
which wish to work with a Center. Such awards shall be
for the purpose of enabling those organizations to provide
outreach services, in collaboration with the Center, to man-
ufacturers located in parts of the region served by the Center
which are not easily accessible to the Center and which are
not served by any other manufacturing outreach center. Or-
ganizations which receive such awards shall be known as
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Local Manufacturing Offices. In reviewing applications, the
Director shall consider the needs of rural as well as urban
manufacturers. No single award for a Local Manufacturing
Office shall be for more than 3 years, awards shall be renew-
able through the competitive awards process, and no award
shall be made unless the applicant provides matching funds
at least equal to the amount received under this subsection.
‘‘(f) In carrying out this section, the Director shall co-
ordinate his efforts with the plans for the Manufacturing
Extension Partnership established under section 24.’’.
SEC. 215. STATE TECHNOLOGY EXTENSION PROGRAM.
(a) ESTABLISHMENT.—Section 26(a) of the National
Institute of Standards and Technology Act (15 U.S.C.
278l(a)) is amended—
(1) by inserting after ‘‘(a)’’ the following new
sentence: ‘‘There is established within the Institute a
State Technology Extension Program.’’; and
(2) by inserting ‘‘through that Program’’ after
‘‘technical assistance’’.
(b) ASSISTANCE PROVIDED BY PROGRAM.—Section 26
of the National Institute of Standards and Technology Act
(15 U.S.C. 278l) is amended by adding at the end the fol-
lowing new subsection:
‘‘(c) In addition to the general authorities listed in
subsection (b), the State Technology Extension Program
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also shall, through merit-based competitive review processes
and to the extent provided in advance in appropriations
Acts—
‘‘(1) make awards to States and conduct work-
shops, pursuant to section 5121(b) of the Omnibus
Trade and Competitiveness Act of 1988 (15 U.S.C.
278l note) in order to help States improve their plan-
ning and coordination of technology extension activi-
ties;
‘‘(2) assist States, including States which his-
torically have had no manufacturing or technology
extension programs or only small programs, to plan,
develop, and coordinate such programs and to help
bring those State programs to a level of performance
where they can provide the full range of manufactur-
ing extension services required by their manufacturers
or, as appropriate, apply successfully for awards to
establish Manufacturing Outreach Centers, Regional
Centers for the Transfer of Manufacturing Tech-
nology, or both;
‘‘(3) support industrial modernization dem-
onstration projects to help States create networks
among small manufacturers for the purpose of facili-
tating technical assistance, group services, and im-
proved productivity and competitiveness;
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‘‘(4) support State efforts to develop and test in-
novative ways to help small- and medium-sized man-
ufacturers in the United States improve their tech-
nical capabilities, including, as appropriate, State
contracts with private-sector technology transfer com-
panies to provide technology assistance and develop-
ment services that are beyond the current capacity of
a given State’s industrial extension activities;
‘‘(5) support State efforts designed to help small-
and medium-sized manufacturers in rural as well as
urban areas improve and modernize their technical
capabilities, including, as appropriate, interstate ef-
forts to achieve such end;
‘‘(6) support State efforts to assist interested
small defense manufacturing firms to convert their
production to nondefense or dual-use purposes;
‘‘(7) support planning for worker technology
education programs in the States at institutions such
as research universities, community colleges, technical
and professional societies, labor education centers,
labor-management committees, and worker organiza-
tions in production technologies critical to the Na-
tion’s future, with an emphasis on high-performance
work systems, the skills necessary to use advanced
manufacturing system well, and best production prac-
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tice; and support on-the-job training programs in the
States to build and enhance the skills of employees,
particularly production workers, in small- and me-
dium-sized manufacturers; and
‘‘(8) help States develop programs to train per-
sonnel who in turn can provide technical skills to
managers and workers of manufacturing firms.’’.
SEC. 216. REPORT ON OPTIONS FOR ACCELERATING THE
ADOPTION OF NEW MANUFACTURING EQUIP-
MENT.
Within 1 year after the date of enactment of this Act,
the Secretary, acting through the Under Secretary, shall
submit to Congress a report on—
(1) the degree to which United States manufac-
turers have difficulty obtaining financing for the pur-
pose of purchasing equipment needed to implement
advanced manufacturing technology and modernize
operations;
(2) the policies and practices followed in other
industrialized countries to help manufacturers obtain
financing for modernization; and
(3) the advantages, disadvantages, and costs of
major options by which the Federal Government
might help stimulate the flow of capital to manufac-
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turers and thus accelerate industrial modernization,
including—
(A) creation of a Government-sponsored en-
terprise to stimulate the flow of capital to manu-
facturing;
(B) increasing technical advice to banks
and other financial institutions, perhaps through
the Manufacturing Extension Partnership in
order to increase their ability to judge whether or
not individual manufacturers have sound mod-
ernization plans;
(C) cooperation between extension activities
supported under the Manufacturing Extension
Partnership and manufacturing equipment leas-
ing firms in order to provide manufacturers
with additional information or equipment leas-
ing options; and
(D) tax incentives.
Subtitle B—National Science Foun-
dation Manufacturing Programs
SEC. 221. NATIONAL SCIENCE FOUNDATION MANUFACTUR-
ING PROGRAMS.
(a) IN GENERAL.—The Director of the National
Science Foundation, after, as appropriate, consultation
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with the Secretary, the Under Secretary, and the Director,
shall—
(1) work with United States companies to iden-
tify areas of research in advanced manufacturing
technologies and advanced workplace practices that
offer the potential to improve United States produc-
tivity, competitiveness, and employment;
(2) support research at United States univer-
sities to improve advanced manufacturing tech-
nologies and advanced workplace practices; and
(3) work with the Technology Administration of
the Department of Commerce and the Institute and,
as appropriate, other Federal agencies to accelerate
the transfer to United States companies of manufac-
turing research and innovations developed at univer-
sities.
(b) ENGINEERING RESEARCH CENTERS AND INDUS-
TRY/UNIVERSITY COOPERATIVE RESEARCH CENTERS.—The
Director of the National Science Foundation shall strength-
en and expand the number of Engineering Research Centers
and strengthen and expand the Industry/University Cooper-
ative Research Centers Program with the goals of increasing
the engineering talent base versed in technologies and work-
place practices critical to the Nation’s future, with empha-
sis on advanced manufacturing technologies, and of advanc-
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ing fundamental engineering knowledge in these tech-
nologies. At least one Engineering Research Center shall
have a research and education focus on the concerns of
United States manufacturers, including small- and me-
dium-sized manufacturers that are trying to modernize
their operations. Awards under this subsection shall be
made on a competitive, merit review basis. Such awards
may include support for acquisition of instrumentation,
equipment, and facilities related to the research and edu-
cation activities of the Engineering Research Centers and
support for undergraduate students to participate in the ac-
tivities of the Engineering Research Centers.
(c) GRADUATE TRAINEESHIPS.—The Director of the
National Science Foundation, in consultation with the Sec-
retary, may establish a program to provide traineeships to
United States citizens or permanent resident aliens who are
graduate students at institutions of higher education within
the United States who choose to pursue masters or doctoral
degrees in manufacturing or industrial engineering. The
Director of the National Science Foundation shall make an
effort to ensure the provision of traineeships under this sub-
section to socially and economically disadvantaged individ-
uals (within the meaning of section 8(a) (5) and (6) of the
Small Business Act, and including women).
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(d) MANUFACTURING MANAGERS IN THE CLASSROOM
PROGRAM.—The Director of the National Science Founda-
tion, in consultation with the Secretary, may establish a
program to provide fellowships, on a cost-shared basis, to
individuals from industry with experience in manufactur-
ing to serve for 1 or 2 years as instructors in manufactur-
ing at 2-year community and technical colleges in the Unit-
ed States. In selecting fellows, the Director of the National
Science Foundation shall place special emphasis on sup-
porting individuals who not only have expertise and prac-
tical experience in manufacturing but who also will work
to foster cooperation between 2-year colleges and nearby
manufacturing firms.
(e) PROGRAMS TO TEACH TOTAL QUALITY MANAGE-
MENT.—The Director of the National Science Foundation,
in consultation with the Secretary, the Under Secretary,
and the Director, may establish a program to develop inno-
vative curricula, courses, and materials for use by institu-
tions of higher education for instruction in total quality
management and related management practices, in order
to help improve the productivity of United States compa-
nies.
(f) SMALL MANUFACTURERS RENEWAL AND TRAIN-
ING.—(1) The Director of the National Science Foundation,
acting in cooperation with the Director, shall establish and
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carry out a pilot program, known as the Small Manufac-
turers Renewal and Training Program in this subsection
referred to as the ‘‘Program’’), to award grants to eligible
partnerships for internship activities under this section.
Partnerships between engineering colleges and manufactur-
ing extension centers are eligible to apply for grants under
the Program and be designated as SMaRT Partnerships.
The Director of the National Science Foundation shall es-
tablish requirements for proposals for funding under the
Program, for activities undertaken by SMaRT Partnerships
with such funding, and for reporting by SMaRT Partner-
ships and other persons participating in the Program, and
criteria for selecting proposals, including economic need.
(2) Each SMaRT Partnership receiving a grant
under the Program shall use such grant funds to
sponsor qualified engineering students to work as in-
terns with eligible small manufacturers, especially
very small manufacturers, by paying the host com-
pany the Federal share of the intern’s wages, not to
exceed the Federal minimum wage.
(3) A small manufacturer shall be eligible to host
interns under the Program only for manufacturing
operations in the United States, shall provide ade-
quate supervision to each intern, and shall use funds
provided under the Program only to pay wages to the
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intern that supplement the host company share of the
intern’s wages, not be less than the Federal minimum
wage. No company shall be eligible to receive funding
in excess of 2 years’ wages at the Federal minimum
wage.
TITLE III—CRITICAL
TECHNOLOGIES
SEC. 301. DEVELOPMENT OF PLAN FOR THE ADVANCED
TECHNOLOGY PROGRAM.
The Secretary, acting through the Under Secretary
and the Director, shall, within 6 months after the date of
enactment of this Act, submit to Congress a plan for the
expansion of the Advanced Technology Program established
under section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n), with specific consider-
ation given to—
(1) closer coordination and cooperation with the
Advanced Research Projects Agency and other Federal
research and development agencies as appropriate;
(2) establishment of temporary staff positions
that can be filled by industrial or technical experts
for a period of 1 to 2 years;
(3) ensuring that the Advanced Technology Pro-
gram will have a meaningful impact on the utiliza-
tion of a broad range of critical technologies and on
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the refinement of advanced manufacturing tech-
nologies;
(4) changes that may be needed when annual
funds available for grants under the Advanced Tech-
nology Program reach levels of $200,000,000 and
$500,000,000; and
(5) any additional administrative steps that
may be necessary for the Advanced Technology Pro-
gram to support large-scale joint research and devel-
opment ventures.
SEC. 302. LARGE-SCALE RESEARCH AND DEVELOPMENT
CONSORTIA.
Section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n) is amended by adding at
the end the following new subsection:
‘‘(k) In addition to the general authority under this
section to provide financial assistance to joint ventures, the
Secretary, through the Director, also may, as permitted by
levels of authorizations and appropriations, provide finan-
cial support for up to 7 years to large-scale joint ventures
requesting $20,000,000 or more a year in Department of
Commerce funds. The Secretary may work with industrial
groups to develop such proposed large-scale joint ventures
and shall give preference to proposals which represent a
broad spectrum of companies for a given industry and
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which focus either on speeding the commercialization of im-
portant new technologies or on accelerating the develop-
ment, testing, and deployment of valuable new process tech-
nologies and workplace practices. The Secretary and Direc-
tor, as appropriate, shall obtain independent technical re-
view of industry proposals submitted under this sub-
section.’’.
SEC. 303. TECHNICAL AMENDMENTS.
(a) AMENDMENTS TO THE NATIONAL INSTITUTE OF
STANDARDS AND TECHNOLOGY ACT.—Section 28 of the Na-
tional Institute of Standards and Technology Act (15
U.S.C. 278n), as amended by section 302 of this Act, is
further amended—
(1) by adding at the end of subsection (a), the
following new sentence: ‘‘The Secretary, acting
through the Director, shall ensure that the principal
economic benefits of the Program accrue to the econ-
omy of the United States.’’;
(2) in subsection (b)—
(A) in paragraph (1)(B), by striking ‘‘or
contracts’’ and inserting in lieu thereof ‘‘con-
tracts, and, subject to the last sentence of this
subsection, other transactions’’;
(B) strike paragraph (1)(B)(ii) and replace
with: ‘‘participation in such joint ventures, if the
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Secretary, acting through the Director, deter-
mines participation to be appropriate and if the
joint venture as a whole agrees to pay at least
half of the total costs of such joint ventures dur-
ing the participation period, which shall not ex-
tend beyond 5 years,’’;
(C) in paragraph (2) by striking ‘‘and co-
operative agreements’’ and inserting in lieu
thereof ‘‘cooperative agreements, and, subject to
the last sentence of this subsection, other trans-
actions’’; and
(D) by adding after paragraph (4) the fol-
lowing: ‘‘The authority under paragraph (1)(B)
and paragraph (2) to enter into other trans-
actions shall apply only if the Secretary, acting
through the Director, determines that standard
contracts, grants, or cooperative agreements are
not feasible or appropriate, and only when other
transaction instruments incorporate terms and
conditions that reflect the use of generally accept-
ed commercial accounting and auditing prac-
tices.’’;
(3) 
in 
subsection 
(d)(3), 
by 
striking
‘‘$2,000,000’’; and inserting in lieu thereof
‘‘$3,000,000’’.
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(4) by adding at the end the following new
subsection: ‘‘(1) Notwithstanding subsections
(b)(1)(B)(ii) and (d)(3), the Director may grant
an extension beyond the deadlines established
under those subsections for joint venture and sin-
gle applicant awardees to expend Federal funds
to complete their projects, if such extension may
be granted with no additional cost to the Federal
Government.’’.
(b) UNITED STATES JOINT VENTURES.—(1) Section
28(d)(11)(A) of the National Institute of Standards and
Technology Act (15 U.S.C. 278n(d)(11)(A)) is amended by
striking the period at the end of the first sentence and in-
serting in lieu thereof the following: ‘‘or any other person
otherwise eligible to participate in an eligible joint venture,
as agreed by the parties, receiving funding under any par-
ticular award, notwithstanding the requirements of section
202 (a) and (b) of title 35, United States Code.’’.
(2) The amendments made by sections 303 (a) and (b)
shall be effective only with respect to assistance for which
solicitations for proposals are made after the date of enact-
ment of this Act or October 1, 1994, whichever occurs later.
(c) AMENDMENTS TO THE AMERICAN TECHNOLOGY
PREEMINENCE ACT OF 1991.—(1) Section 201(d) of the
American Technology Preeminence Act of 1991 (15 U.S.C.
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278n note) is amended by adding at the end the following
new sentence: ‘‘In the case of the amendment made by sub-
paragraph (A) of subsection (c)(6), such amendment shall
be effective as of the date of enactment of the paragraph
stricken by such subparagraph.’’.
(2) Section 507 of the American Technology Pre-
eminence Act of 1991 (15 U.S.C. 3717) is repealed.
(d) AMENDMENTS TO THE NATIONAL SCIENCE AND
TECHNOLOGY POLICY, ORGANIZATION, AND PRIORITIES
ACT.—(1) Title IV of the National Science and Technology
Policy, Organization, and Priorities Act of 1976 (42 U.S.C.
6651) is amended to read as follows:
‘‘TITLE IV—NATIONAL SCIENCE
AND TECHNOLOGY COUNCIL
‘‘SEC. 401. There is established a National Science and
Technology Council (hereafter in this title referred to as the
‘Council’).
‘‘SEC. 402. Within 30 days after the date of enactment
of the National Competitiveness Act of 1994, the President
shall submit to Congress a report that outlines the composi-
tion and functions of the Council.
‘‘SEC. 403. (a) The Council shall assume the respon-
sibilities and authorities of the Federal Coordinating Coun-
cil for Science, Engineering, and Technology, the National
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Space Council, and the National Critical Materials Coun-
cil.
‘‘(b) Executive departments and agencies shall make
resources, including, but not limited to, personnel, office
support, and printing, available to the Council.
‘‘(c) The Council is authorized to establish such com-
mittees and working groups as it may require.’’.
(2) The Federal Coordinating Council for Science, En-
gineering, and Technology established by Public Law 94–
282 and by Executive Order 12039, the National Space
Council established by Public Law 100-685 and Executive
Order 12675, and the National Critical Materials Council
established by Public Law 98–373 are hereby abolished.
(3) Section 207(c) of the National Science and Tech-
nology Policy, Organization, and Priorities Act of 1976 (42
U.S.C. 6616(c)) is amended—
(A) by amending paragraph (1) to read as fol-
lows:
‘‘(1) appoint such officers and employees as deemed
necessary to perform the functions now or hereafter vested
in the Director without regard to any provision of law regu-
lating the employment or compensation of persons in the
Government service, at rates not to exceed the rate of pay
for level VI of the Senior Executive schedule as provided
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pursuant to section 5382 of title 5, the United States Code,
and to prescribe their duties;’’; and
(B) by striking ‘‘and’’ at the end of paragraph
(2); by striking the period at the end of paragraph (3)
and inserting in lieu thereof ‘‘; and’’; and by adding
at the end the following new paragraph:
‘‘(4) accept voluntary and uncompensated services,
notwithstanding the provisions of section 1342, title 31,
United States Code.’’.
SEC. 304. TECHNOLOGY MONITORING AND COMPETITIVE-
NESS ASSESSMENT.
Section 101 of the Stevenson-Wydler Technology Inno-
vation Act of 1980, as redesignated by section 213(2) of this
Act, is amended by striking subsection (e) and inserting in
lieu thereof the following new subsections:
‘‘(e) OFFICE OF TECHNOLOGY MONITORING AND COM-
PETITIVENESS ASSESSMENT.—(1) The Secretary, through
the Under Secretary, shall establish within the Technology
Administration an Office of Technology Monitoring and
Competitiveness Assessment, to collect, evaluate, assess, and
disseminate to United States industry, State and local gov-
ernments, nonprofit organizations, and other interested
parties information on—
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‘‘(A) foreign science and technology, specifically
information assessing foreign capabilities relative to
the United States;
‘‘(B) policies and programs used by foreign gov-
ernments and industries to develop and apply eco-
nomically important critical technologies, how these
policies and programs compare with public and pri-
vate activities in the United States, and the effects
that these foreign policies and programs have on the
competitiveness of United States industry; and
‘‘(C) the way in which the economic competitive-
ness of United States industry can be enhanced
through Federal programs, including Department of
Commerce programs, and evaluations of the effective-
ness of Federal technology programs in helping to
promote United States industrial competitiveness and
economic growth.
‘‘(2) Based on the information gathered under para-
graph (1), the President, with the assistance of the Sec-
retary, shall submit to Congress an annual report on Unit-
ed States technology and competitiveness analyzing the con-
dition of United States technology relative to major trading
partners, key trends in foreign technology and competitive-
ness policies and targeting, and the degree to which Federal
programs are helping the United States to stay competitive
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with other countries and create domestic employment op-
portunities.
‘‘(3) The Office of Technology Monitoring and Com-
petitiveness Assessment is authorized to—
‘‘(A) act as a focal point within the Federal Gov-
ernment for the collection and dissemination, includ-
ing electronic dissemination, of information on for-
eign process and product technologies, including in-
formation collected under the Japanese Technical Lit-
erature Program;
‘‘(B) work and, as appropriate, enter into coop-
erative arrangements with sector-specific industry
trade associations or consortia to define the informa-
tion desired by industry;
‘‘(C) compile and make available the extensive
foreign technology monitoring and assessment infor-
mation already collected and analyzed by the Federal
Government;
‘‘(D) as appropriate, enter into controlled access
agreements with other Federal agencies to fill the in-
dustry’s information needs;
‘‘(E) act as an electronic clearinghouse for such
information or otherwise provide for such a clearing-
house;
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‘‘(F) direct and fund the collection of additional
related information;
‘‘(G) direct and fund analysis of foreign research
and development activities, technical capabilities,
workplace practices, particularly in technical areas
where the United States is considered to be at par or
lagging foreign capabilities;
‘‘(H) establish a program to identify technical
areas needing a full-scale technical evaluation, and
provide, on a cost-shared basis to private sector or
government-industry joint ventures, grants to conduct
the evaluation; and
‘‘(I) work with the Department of State to place
technical experts from the Institute and other Federal
laboratories into United States embassies to serve as
technology attaches and counselors.
‘‘(f) FELLOWSHIP PROGRAM.—(1) The Secretary, act-
ing through the Under Secretary, shall establish and ad-
minister a fellowship program to support Technology Fel-
lows to assist the Under Secretary in carrying out activities
under subsection (e) relating to those countries that are
major competitors of the United States in critical tech-
nologies, and to identify opportunities for technology trans-
fer to the United States or technological collaboration for
United States industries.
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‘‘(2) Technology Fellows shall—
‘‘(A) regularly report to the Department of Com-
merce on work planned, in progress, and accom-
plished; and
‘‘(B) provide support to the Department of Com-
merce as requested by that Department.
‘‘(3) Fellowships awarded under the program estab-
lished under this subsection shall—
‘‘(A) be awarded for a period of 2 years;
‘‘(B) be reasonable and appropriate; and
‘‘(C) include provisions for living and office ar-
rangements in the host country.
‘‘(4) Only individuals who—
‘‘(A) have at least a bachelors degree in engineer-
ing or science; and
‘‘(B) have at least 5 years of work experience in
manufacturing or technology development,
shall be eligible for a fellowship under this program.’’.
SEC. 305. RECOUPMENT.
Section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n), as amended by this Act,
is further amended by adding at the end the following new
subsection:
‘‘(n)(1) Any transaction providing assistance under
this section may include a clause that requires the recipient
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to make payments to the Department of Commerce as a con-
dition of receiving such assistance.
‘‘(2) There is established on the books of the Treasury
a separate account for the Advanced Technology Program
established under this section. Amounts received by the
United States pursuant to a requirement imposed under
paragraph (1) may be credited to the extent authorized by
the Secretary, to the account established under this para-
graph. Amounts so credited shall be merged with other funds
in the account and shall be available, to the extent provided
in advance in appropriations Acts, for the same purposes
and the same period for which other funds in such account
are available.’’.
SEC. 306. TECHNOLOGY FINANCING PILOT PROGRAM.
The Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3701 et seq.), as amended by title II of
this Act, is further amended by adding at the end the follow-
ing new title:
‘‘TITLE III—ADDITIONAL
ASSISTANCE TO INDUSTRY
‘‘SEC. 301. FINDINGS AND STATEMENT OF POLICY.
‘‘Congress finds and declares the following:
‘‘(1) In recent years, United States technology
firms appear to have had increasing difficulty financ-
ing the development and early-stage commercializa-
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tion of important new critical civilian technologies.
Venture capital is less available than in past years;
banks appear less willing to provide loans; and me-
dium-sized as well as small companies often have
problems financing promising long-term technology
projects.
‘‘(2) This difficulty in obtaining financing par-
ticularly hurts those technology firms which face for-
eign competitors which have received substantial di-
rect or indirect financial help from their respective
governments.
‘‘(3) The Nation would benefit from a technology
financing pilot program designed to assist, on an ex-
perimental basis, private-sector venture capital enti-
ties which, in turn, can select and support the most
promising and valuable long-term United States tech-
nology projects.
‘‘SEC. 302. TECHNOLOGY FINANCING PILOT PROGRAM.
‘‘(a) ESTABLISHMENT OF PROGRAM.—(1) There is es-
tablished a Department of Commerce-Small Business Ad-
ministration Pilot Technology Financing Partnership Pro-
gram (in this section referred to as the ‘Pilot Program’).
‘‘(2) The Pilot Program shall be operated under the
direction of a Department of Commerce-Small Business Ad-
ministration Venture Capital Licensing Committee (in this
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section referred to as the ‘Licensing Committee’), which
shall consist of—
‘‘(A) three Department of Commerce designees
appointed by the Secretary, one of whom shall be the
Under Secretary for Technology and shall serve as
chair of the Licensing Committee, and the other two
of whom shall be technology experts, at least one of
whom shall also be a finance and investment expert;
and
‘‘(B) two Small Business Administration des-
ignees who are appointed by the Administrator of the
Small Business Administration (in this section re-
ferred to as the ‘Administrator’) who shall be finance
and investment experts.
‘‘(3) Under the Pilot Program, for the purpose of stim-
ulating and expanding the flow of private capital to eligible
technology firms and eligible joint ventures—
‘‘(A) the Licensing Committee may license, pur-
suant to joint regulations promulgated under para-
graph (4), private-sector entities, to be known as ‘ci-
vilian technology investment companies’; and
‘‘(B) to the extent directed by the Secretary and
the Administrator and provided in advance in appro-
priations Acts, and in accordance with the operating
plan developed under subsection (f), the Licensing
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Committee may authorize the Small Business Admin-
istration to assist financially such civilian technology
investment companies.
‘‘(4) The Secretary and the Administrator, acting
through the Licensing Committee, shall promulgate such
regulations (in this section referred to as the ‘joint regula-
tions’) as shall be necessary to carry out the Pilot Program.
Such joint regulations shall reflect that the Administrator
will have primary responsibility for executing the Pilot
Program, using Small Business Administration personnel
and the programmatic authority provided in this section,
and applicable law. In accordance with the operating plan
developed by the Licensing Committee under subsection (f),
the Administrator may issue regulations modifying and
augmenting existing Small Business Administration au-
thority or program criteria, as necessary, to accommodate
the special needs of the Pilot Program. Those Small Busi-
ness Administration regulations which are modified or
adopted to facilitate the Pilot Program shall also be re-
viewed by the Licensing Committee and, if approved by the
Licensing Committee, shall become part of the joint regula-
tions.
‘‘(5) The Secretary shall, utilizing Department of
Commerce technology personnel and the programmatic au-
thority provided in this section and under applicable law,
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institute and implement a complementary information and
technical assistance pilot program designed to facilitate
matches between high-technology companies seeking financ-
ing and venture capitalists looking for meritorious early-
stage critical technology investments.
‘‘(6) Such funds as may be appropriated through this
Act or any other Act to the Department of Commerce to
implement the Pilot Program may be transferred by the
Secretary to the Small Business Administration, as nec-
essary to carry out the purposes of this section, in accord-
ance with subsection (c)(1).
‘‘(b) ACTIVITIES OF LICENSEES.—(1) Each civilian
technology investment company licensed under this section
may provide venture capital and loans to eligible technology
firms and eligible joint ventures in such manner and under
such terms as the licensee may fix in accordance with the
joint regulations. Civilian technology investment companies
may provide venture capital and loans directly or in
coinvestments with other investors. The type of financing
to be provided shall be determined by the Licensing Com-
mittee, and shall include but shall not be limited to that
provided by the Small Business Act or the Small Business
Investment Act of 1958, or any regulation promulgated
thereunder.
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‘‘(2) Each civilian technology investment company
shall have authority to borrow money and to issue its deben-
tures, promissory notes, securities, or other obligations
under such general conditions and subject to such limita-
tions and regulations as prescribed in the joint regulations.
‘‘(c) ASSISTANCE TO LICENSEES.—(1) In order to en-
courage the formation and growth of civilian technology in-
vestment companies, the Licensing Committee is authorized,
to the extent that funds are made available to the Depart-
ment of Commerce in appropriations Acts, to transfer such
funds as may be necessary to the Small Business Adminis-
tration to purchase (or guarantee the timely payment of
all principal, interest, and dividends, as scheduled, on) de-
bentures or participating, nonvoting preferred securities is-
sued by such companies, on such terms and conditions as
are appropriate pursuant to the joint regulations to carry
out the purposes of this section. The Small Business Admin-
istration is also authorized, in accordance with sections 321
and 322 of the Small Business Investment Act of 1958, and
regulations promulgated thereunder, to issue and guarantee
such trust certificates as are necessary and appropriate to
provide funding for qualified civilian technology investment
companies. Such issuance and funding shall take place in
the manner and on the terms and conditions as the Licens-
ing Committee directs and shall not be limited to the terms
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and conditions that the Small Business Administration uti-
lizes for funding of small business investment companies
under the Small Business Investment Act of 1958.
‘‘(2) Guarantees and purchases of debentures and eq-
uity securities under this subsection shall be made on such
terms and conditions as are necessary to ensure that the
cost of the program established under this section shall not
exceed 15 percent of its corresponding credit authority in
any fiscal year. For the purposes of this subsection, the term
‘cost’ shall have the same meaning given such term in sec-
tion 502(5) of the Federal Credit Reform Act of 1990, and
the term ‘credit authority’ shall have the same meaning
given such term in section 3(10) of the Congressional Budg-
et Act of 1974.
‘‘(d) PURPOSES AND REQUIREMENTS.—The Licensing
Committee shall require that any civilian technology invest-
ment company licensed and assisted under this section
shall—
‘‘(1) focus primarily on providing patient early-
stage capital, either loans or equity investments, to el-
igible technology firms and eligible joint ventures in
the United States in order to help those firms and
joint ventures finance and accelerate the development
and early-stage commercialization of critical civilian
technologies;
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‘‘(2) provide financial assistance to critical civil-
ian technology projects at eligible technology firms
and eligible joint ventures: Provided, however, That
the Department of Commerce members of the Licens-
ing Committee shall determine whether the products,
processes, and services provided by firms assisted by
a licensee in fact will assist in developing United
States critical technologies;
‘‘(3) demonstrate to the Licensing Committee
credible procedures for ensuring that investments are
made in critical technology projects for which eligible
technology firms cannot obtain necessary financing
solely through commercial capital markets; and
‘‘(4) work with the Licensing Committee to es-
tablish methods to identify and evaluate projects to be
assisted by the licensee, using, as appropriate, the ex-
isting expertise of the National Institute of Standards
and Technology, and other organizations, including
Regional Centers for the Transfer of Manufacturing
Technology, universities, and other research institu-
tions.
‘‘(e) PAYMENTS.—All amounts received by the Small
Business Administration from the payment of dividends,
any profit allocation, the redemption of securities pursuant
to this section, and any fees paid to the United States by
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a civilian technology investment company licensed pursu-
ant to this section, shall be deposited in the Treasury, in
accordance with the joint regulations and the requirements
of the Federal Credit Reform Act of 1990.
‘‘(f) OPERATING PLAN; EFFECTIVE DATE; AND EVAL-
UATION.—(1) The Secretary and the Administrator, acting
through the Licensing Committee, shall jointly and in con-
sultation with State and local governments, industry, and
the financial community, prepare and submit to Congress
within one year after the date of enactment of this title,
an operating plan and draft joint regulations to carry out
this section. In preparing such a plan, the Secretary and
Administrator shall consider and evaluate alternative ap-
proaches to help technology firms and joint ventures in the
United States develop and commercialize critical civilian
technologies. As part of their report, they shall make rec-
ommendations to Congress as they deem appropriate.
‘‘(2) Except for the requirements set forth in subsection
(a) and paragraph (1) of this subsection, the provisions of
this section shall not take effect until 6 months after the
date of the issuance of the report required in paragraph
(1).
‘‘(3) After appropriations are provided for the Pilot
Program authorized under this section, the Licensing Com-
mittee, in consultation with industry and the financial
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community, shall evaluate annually the effectiveness of the
Program and submit an annual report to appropriate com-
mittees of Congress on the findings resulting from such eval-
uation. Such report shall contain, on a confidential basis,
appendices which include, but are not necessarily limited
to, the type and amount of assistance provided to licensees
under this section, key characteristics of such licensees, the
number and size in net worth of the technology firms and
joint ventures (and the participants comprising them) as-
sisted by each licensee, the amount of assistance provided
to each eligible technology firm or eligible joint venture, and
the types of technology each eligible technology firm or joint
venture is developing and commercializing. Such report
also shall contain an analysis of the Pilot Program’s im-
pact on the Small Business Administration’s Small Busi-
ness Investment Company program.
‘‘(4) Five years after appropriations have been pro-
vided for the Pilot Program authorized under this section,
the General Accounting Office, in consultation with indus-
try and the financial community, shall evaluate the effec-
tiveness of the Program and submit a report to appropriate
committees of Congress on the findings resulting from such
evaluation. Such evaluation shall include an analysis of the
Pilot Program’s impact on the Small Business Administra-
tion’s Small Business Investment Company program.
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‘‘(g) DEFINITIONS.—As used in this section, the
term—
‘‘(1) ‘appropriate committees of Congress’ means
the Committee on Science, Technology, and Space and
Committee on Small Business of the House of Rep-
resentatives and the Committee on Commerce,
Science, and Transportation and Committee on
Small Business of the Senate;
‘‘(2) ‘critical civilian technology’ means a tech-
nology not exclusively military which is identified in
one or more of the biennial national critical tech-
nologies reports required under section 603 of the Na-
tional Science and Technology Policy, Organization,
and Priorities Act of 1976 (42 U.S.C. 6683);
‘‘(3) ‘eligible joint venture’ means a joint re-
search and development venture or joint production
venture, as defined in section 2 of the National Coop-
erative Research Act of 1984 (5 U.S.C. 4301)—
‘‘(A) which meets the requirements of sec-
tion 28(d)(9) of the National Institute of Stand-
ards and Technology Act (15 U.S.C. 278n(d)(9));
‘‘(B) whose purpose in seeking financing is
the development of products, processes, and serv-
ices based on critical civilian technologies; and
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‘‘(C) which meets size standards set by the
Licensing Committee, which size standards need
not comply with the Small Business Act or the
Small Business Investment Act of 1958, or any
regulation promulgated thereunder or interpreta-
tion thereof;
‘‘(4) ‘eligible technology firm’ means a com-
pany—
‘‘(A) which meets the requirements of sec-
tion 28(d)(9) of the National Institute of Stand-
ards and Technology Act (15 U.S.C. 278n(d)(9));
‘‘(B) whose purpose in seeking financing is
the development of products, processes, and serv-
ices based on critical civilian technologies; and
‘‘(C) which meets size standards set by the
Administrator;
‘‘(4) ‘finance and investment expert’ means an
individual who has administered or participated in a
venture capital or similar financing program, or has
operated a venture capital company; and
‘‘(5) ‘licensee’ means a civilian technology invest-
ment company licensed by the Licensing Committee
pursuant to this section.’’.
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government, industry, and research and educational
institutions;
‘‘(2) foster and encourage competition and pri-
vate sector investment in networking within the tele-
communications industry;
‘‘(3) promote and encourage research and devel-
opment leading to the creation of data transmission
standards, enabling the establishment of privately de-
veloped high-speed commercial networks;
‘‘(4) provide for the appropriate application of
Federal laws that provide network and information
resources security, including those that protect intel-
lectual property rights, control access to data bases,
and protect national security;
‘‘(5) enable interoperability of Federal and non-
Federal computer networks, to the extent appropriate,
in a way that allows autonomy for each component
network;
‘‘(6) promote the research and development of
high-capacity and high-speed computing networks, in-
cluding related applications; and
‘‘(7) demonstrate, in cooperation with users and
others in the private sector, how advanced computers,
high-capacity and high-speed computing networks,