I
103D CONGRESS
1ST SESSION
H. R. 3550
To foster economic growth, create new employment opportunities, and
strengthen the industrial base of the United States by providing credit
for businesses and by facilitating the transfer and commercialization
of government-owned patents, licenses, processes, and technologies, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 19, 1993
Mr. KANJORSKI (for himself, Mr. GEPHARDT, Mr. BONIOR, Mr. BROWN of
California, Mr. VALENTINE, Mr. RICHARDSON, Mr. RIDGE, Mrs. ROU-
KEMA, Mr. HOYER, Mr. MFUME, Mr. KLINK, Mr. KLEIN, Ms. KAPTUR,
Ms. MCKINNEY, Mr. HINCHEY, Ms. SCHENK, Mr. MURTHA, Mr. BORSKI,
Mr. HOLDEN, Mr. FOGLIETTA, Mr. MCHALE, Mr. MURPHY, Mr.
BLACKWELL, Mr. FINGERHUT, Mr. BARCA of Wisconsin, Mr. ANDREWS
of New Jersey, Mr. BACCHUS of Florida, Mr. STUPAK, Mrs. THURMAN,
Mr. BARRETT
of Wisconsin, Mrs. UNSOELD, Ms. MARGOLIES-
MEZVINSKY, Mr. ROTH, Mr. SHAYS, Mr. DOOLEY, Mr. DERRICK, Ms.
VELA´ZQUEZ, Mr. MCDADE, Mr. WELDON, Mr. TAYLOR of Mississippi,
Mr. SAWYER, Mr. BILBRAY, Mr. MORAN, Ms. SLAUGHTER, Mrs. MINK,
Mr. ORTON, Mr. FAZIO, Ms. SHEPHERD, Mr. LEWIS of Georgia, and Mr.
BISHOP) introduced the following bill; which was referred jointly to the
Committees on Banking, Finance and Urban Affairs, Science, Space, and
Technology, the Judiciary, and Ways and Means
A BILL
To foster economic growth, create new employment opportu-
nities, and strengthen the industrial base of the United
States by providing credit for businesses and by facilitat-
ing the transfer and commercialization of government-
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owned patents, licenses, processes, and technologies, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Technology Commercialization and Credit En-
hancement Act of 1993’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.
TITLE I—CONSOLIDATION OF INFORMATION ON TECHNOLOGIES
Sec. 101. Establishment of data base.
Sec. 102. Standardization and accessibility of information.
Sec. 103. Access to data base.
Sec. 104. Review of current Federal technology transfer efforts.
Sec. 105. Exercise of march-in-rights; reassignment of licensing responsibilities.
TITLE II—TECHNOLOGY TRANSFER AND COMMERCIALIZATION
FINANCING CORPORATION
Sec. 201. Establishment of corporation.
Sec. 202. Process of organization.
Sec. 203. Directors, officers, and employees.
Sec. 204. General powers.
Sec. 205. Promotion of technologies.
Sec. 206. Authority to represent the government.
Sec. 207. Financing of corporation.
Sec. 208. Consultation with Federal agencies, and with private parties.
Sec. 209. Review of corporation.
Sec. 210. Audit by Comptroller General.
Sec. 211. Reports.
Sec. 212. Administration.
Sec. 213. Miscellaneous provisions.
TITLE III—COMMERCIALIZATION FINANCING
Sec. 301. Technology Transfer Investment Fund.
Sec. 302. Loan and loan guarantee authority.
Sec. 303. Terms and conditions.
Sec. 304. Equity instruments purchase or guarantee authority.
Sec. 305. Technical assistance for lenders and borrowers.
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Sec. 306. Outreach to specific areas.
Sec. 307. Liability.
Sec. 308. Injunctive relief.
Sec. 309. Performance measures; annual report.
TITLE IV—ALTERNATIVE MINIMUM TAX ON CORPORATIONS
IMPORTING PRODUCTS INTO THE UNITED STATES
Sec. 401. Alternative minimum tax on corporations importing products into the
United States at artificially inflated prices.
TITLE V—MISCELLANEOUS PROVISIONS
Sec. 501. Effective date.
Sec. 502. Separability.
SEC. 2. FINDINGS.
The Congress finds that—
(1) through its support and funding of research
and development in this Nation’s Federal agencies,
laboratories, and educational institutions, the Fed-
eral Government has fostered the creation of thou-
sands of patents, licenses, technologies, and proc-
esses owned, or held in whole or part, by the Federal
Government;
(2) if commercialized, these patents, licenses,
technologies, and processes owned, or held in whole
or part, by the Federal Government hold the poten-
tial to greatly expand the economy of the United
States and to create millions of new jobs at good
wages for American workers;
(3) the Federal Government has not been suffi-
ciently effective in encouraging the commercializa-
tion of these patents, licenses, technologies, and
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processes owned, or held in whole or part, by the
Federal Government;
(4) throughout the Federal Government, there
is no single inventory or source of information on
patents, licenses, technologies, and processes owned,
or held in whole or part, by the Federal Govern-
ment;
(5) information on patents, licenses, tech-
nologies, and processes owned, or held in whole or
part, by the Federal Government is not standardized
in form or content, is separately maintained by nu-
merous Federal agencies and departments, and is
not easily accessible by the public;
(6) businesses and entrepreneurs in the United
States are largely unaware of the existence of these
patents, licenses, technologies, and processes, and
largely unaware of the possibilities for obtaining the
rights to these patents, licenses, technologies, and
processes for the purpose of commercialization;
(7) even in instances in which businesses and
entrepreneurs are aware of their rights to obtain
patents, licenses, technologies, and processes owned,
or held in whole or part, by the Federal Govern-
ment, the limited availability of credit to undertake
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new business operations and concerns is a signifi-
cant deterrent to their commercialization;
(8) foreign corporations, frequently with the as-
sistance of their governments, are the primary enti-
ties obtaining rights to patents, licenses, tech-
nologies, and processes owned, or held in whole or
part, by the Federal Government, and are the pri-
mary entities bringing about their commercialization
in the form of new goods and products which com-
pete with United States businesses;
(9) it is in the economic interest of the United
States to facilitate the private sector commercializa-
tion of patents, licenses, technologies, and processes
by United States businesses; and
(10) greater effectiveness will be achieved
through the utilization of the private sector cor-
porate structure and profit incentives in facilitating
the commercialization of patents, licenses, tech-
nologies, and processes than can reasonably be ex-
pected by the Federal Government performing this
function.
SEC. 3. PURPOSES.
The purposes of this Act are to—
(1) provide a self-supporting source of financing
for private-sector United States businesses to com-
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mercialize patents, licenses, technologies, and proc-
esses owned, or held in whole or part, by the Federal
Government;
(2) develop a single, comprehensive data base of
information on patents, licenses, technologies, and
processes owned, or held in whole or part, by the
Federal Government, which is standardized and eas-
ily accessible by the general public;
(3) heighten the awareness of United States
businesses and entrepreneurs of the availability for
commercialization of patents, licenses, technologies,
and processes owned, or held in whole or part, by
the Federal Government;
(4) facilitate the transfer of technologies to
United States businesses and entrepreneurs and to
assist in their commercialization;
(5) finance the technology transfer and com-
mercialization initiatives contained in this Act by es-
tablishing an alternative minimum tax on corpora-
tions importing products into the United States at
artificially inflated prices;
(6) achieve greater effectiveness in facilitating
the commercialization of patents, licenses, tech-
nologies, and processes through the utilization of the
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private sector corporate structure and profit incen-
tive; and
(7) foster United States economic growth and
the creation of new employment opportunities for
American workers in good paying jobs, while
strengthening and enhancing the manufacturing pre-
eminence of the United States into the 21st Cen-
tury.
SEC. 4. DEFINITIONS.
For purposes of this Act:
(1) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Commerce.
(2) CORPORATION.—The term ‘‘Corporation’’
means the Technology Transfer and Commercializa-
tion Financing Corporation established under title II
of this Act.
(3) BOARD.—The term ‘‘Board’’ means the
board of directors of the Transfer and Commer-
cialization Financing Corporation.
(4) FUND.—The term ‘‘Fund’’ means the Tech-
nology Transfer Investment Fund established under
section 302.
(5) QUALIFIED CONCERN.—The term ‘‘qualified
concern’’ means a United States based consortia, a
private United States business, or an educational in-
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stitution participating in a joint project with one or
more private United States businesses, for the devel-
opment and commercialization of patents, licenses,
processes, technologies—
(A) owned or held in whole or part by Fed-
eral departments, agencies, or government con-
trolled corporations,
(B) developed in Federal laboratories,
(C) arising in the course of federally fund-
ed research at educational institutions, other
units of government, or with private concerns,
or
(D) which are made available to the Fed-
eral Government by private concerns.
(6) ACADEMY.—The term ‘‘Academy’’ means
the National Academy of Sciences.
TITLE I—CONSOLIDATION OF
INFORMATION ON TECHNOLOGIES
SEC. 101. ESTABLISHMENT OF DATA BASE.
The Secretary of Commerce shall establish and main-
tain an integrated, comprehensive data base describing all
patents, licenses, technologies, and processes owned, or
held in whole or part, by the Federal Government, or
which originated in the course of federally funded research
to which the Federal Government has an interest.
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SEC. 102. STANDARDIZATION AND ACCESSIBILITY OF IN-
FORMATION.
(a) STANDARDIZATION AND ACCESSIBILITY OF IN-
FORMATION.—The Secretary shall take such steps as are
necessary to ensure that the information contained in the
data base established under section 101—
(1) is in a standardized form, and
(2) is accessible and usable in a manner as sim-
ple and easy to use as possible, recognizing the
needs of small- and medium-sized businesses.
(b) RESPONSIBILITIES.—In carrying out this title,
the Secretary shall—
(1) consult with and, to the extent practicable,
utilize the capabilities of other executive agencies, as
appropriate, to ensure the efficient and effective im-
plementation of this section; and
(2) explore, with other executive agencies, ways
to avoid duplication of effort by consolidating the
administration of the program established by this
section with any other similar Federal program, and
as part of such consolidation may delegate adminis-
trative functions, as necessary and appropriate, to
another executive agency.
(c) OTHER FEDERAL AGENCIES.—Other executive
agencies shall provide such information, and in such form,
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as determined by the Secretary and shall cooperate with
the Secretary in carrying out this section.
SEC. 103. ACCESS TO THE DATA BASE.
(a) ACCESS TO THE DATA BASE BY THE CORPORA-
TION.—Except as provided in subsection (c), the Secretary
shall provide unlimited access to the data base established
under this title to the Technology Transfer and Commer-
cialization Financing Corporation established under title
II, without fee, to assist the Corporation in meeting its
responsibilities under this Act.
(b) ACCESS TO THE DATA BASE BY THE PUBLIC.—
Except as provided in subsection (c), the Secretary shall,
by regulation, develop and implement procedures provid-
ing for access to the data base established under this title
to members of the general public.
(c) RESTRICTIONS.—If, in consultation with the
heads of other executive agencies, the Secretary deter-
mines that access by the Corporation or any other person
to information contained in the data base established
under this title would—
(1) threaten national security,
(2) violate the proprietary rights of any private
interest, or
(3) be otherwise inappropriate
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the Secretary shall take such steps as may determine to
be appropriate to limit access to the information in the
data base described in paragraphs (1), (2), or (3) of this
subsection to the Corporation or any other person.
SEC. 104. REVIEW OF CURRENT FEDERAL TECHNOLOGY
TRANSFER EFFORTS.
(a) IN GENERAL.—The Secretary shall conduct a re-
view of the technology transfer activities within all Federal
departments, agencies, and laboratories, or which are oth-
erwise supported by Federal funds. This review shall iden-
tify those activities which may overlap or duplicate the
technology transfer and commercialization activities pro-
vided for under this Act.
(b) REPORTS.—The Secretary shall issue a report to
the United States House of Representatives and the Sen-
ate, not later than one year following the enactment of
this Act, detailing—
(1) the findings of the review directed under
subsection (a),
(2) the funding levels of each existing Federal
technology transfer and commercialization activities,
and
(3) recommendations for the modification or
elimination of any existing Federal technology trans-
fer and commercialization activities which he finds
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to be duplicative of the activities provided for under
this Act.
SEC. 105. EXERCISE OF MARCH-IN RIGHTS; REASSIGNMENT
OF LICENSING RESPONSIBILITIES.
35 U.S.C. 207(b) is amended by inserting the follow-
ing new paragraph—
‘‘(4) develop uniform regulations for all Federal
agencies which have conveyed title to a subject in-
vention under this chapter requiring such agencies
to exercise their rights under section 203(l)(a) with-
in a specified period of time, and, if so directed by
the Secretary, to transfer the responsibility for the
granting of a nonexclusive, partially exclusive, or ex-
clusive license to a subject invention to such organi-
zation as the Secretary may designate.’’.
TITLE II—TECHNOLOGY TRANSFER AND
COMMERCIALIZATION 
FINANCING
CORPORATION
SEC. 201. ESTABLISHMENT OF CORPORATION.
(a) IN GENERAL.—There shall be established a Tech-
nology Transfer and Commercialization Financing Cor-
poration. The Corporation shall be operated for the pur-
pose of fostering economic growth, creating new employ-
ment opportunities, and strengthening the industrial base
of the United States by providing credit for businesses and
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by facilitating the transfer and commercialization of pat-
ents, licenses, processes, and technologies—
(1) owned or held in whole or part by Federal
departments, agencies, or government controlled cor-
porations,
(2) developed in Federal laboratories,
(3) arising in the course of federally funded re-
search at educational institutions, other units of gov-
ernment, or with private concerns, and
(4) which are made available by private con-
cerns.
(b) CORPORATION NOT AN ESTABLISHMENT OF THE
UNITED STATES.—The Corporation shall not be an agen-
cy or establishment of the United States.
SEC. 202. PROCESS OF ORGANIZATION.
(a) INCORPORATION.—The Secretary of Commerce,
the Secretary of the Treasury, and the Secretary of Labor
shall serve as the incorporators of the Technology Trans-
fer and Commercialization Financing Corporation, who
shall serve as the initial board of directors until their suc-
cessors are elected and qualified. Such incorporators shall
take whatever other actions are necessary to establish the
corporation, including the filing of articles of incorpora-
tion.
(b) OWNERSHIP OF THE CORPORATION.
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(1) The Federal Government shall retain a 60
percent non-voting equity ownership of the Corpora-
tion, except as otherwise provided under this Act.
(2) Within 6 months of the date of enactment,
the Secretary of Commerce shall solicit proposals for
the sale of the remaining 40 percent of the equity
ownership in the Corporation to a United States pri-
vate entity or consortium which will assume the
management and operation of the Corporation. Such
final sale shall be completed within 12 months of the
date of enactment.
(3) Any subsequent stock offering in the Cor-
poration will be managed in such manner that 60
percent of such offering is conveyed as non-voting
equity ownership, without cost, to the Federal Gov-
ernment.
(c) SELECTION CRITERIA
AND PROCEDURES
FOR
THE SALE OF 40 PERCENT OF THE EQUITY IN THE COR-
PORATION.—
(1) IN GENERAL.—The President, in consulta-
tion with the Secretary of Commerce, shall make the
final selection of a proposal for the sale of 40 per-
cent of the equity in the Corporation, as provided
under subsection (b)(2).
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(2) CRITERIA FOR SELECTING A PROPOSAL TO
RECOMMEND TO THE PRESIDENT.—In selecting a
proposal to recommend to the President for the sale
of 40 percent of the equity in the Corporation, as
described in paragraph (1), the Secretary of Com-
merce shall take into consideration the following fac-
tors—
(A) the quality of the operational plan,
(B) the soundness of the financing of the
organization and of the operational plan,
(C) the qualifications of, and the diversity
of talents and skills represented by, the submit-
ters of the proposal, including the extent to
which a combination of organizations is submit-
ting a joint proposal, and
(D) whether a State government, or unit of
a State government, is participating financially
with the organization submitting a proposal,
(E) the intentions of the submitters of the
proposal to locate the headquarters of the Cor-
poration in an area which is not located in the
50 largest Metropolitan Statistical Areas, based
on the 1990 Census, and
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(F) such other factors as the Incorporators
determine to be appropriate in meeting the ob-
jectives of this Act.
(3) PROCEDURES FOR SELECTING A PROPOSAL
TO RECOMMEND TO THE PRESIDENT.—In selecting a
proposal to recommend to the President for the sale
of 40 percent of the equity in the Corporation, as
described in paragraph (1), the Secretary of Com-
merce shall ensure that in the selection process—
(A) not less than 3 proposals are identified
as proposals to receive further consideration, as
provided under subparagraphs (B) and (C):
Provided, however, That if less than 3 proposals
are submitted each of the proposals shall re-
ceive such further consideration,
(B) a review procedure is implemented
under which the sponsors of the proposals iden-
tified in subparagraph (A) are provided an op-
portunity to make personal presentations of
their proposals to the Secretary or his designee,
and
(C) individual negotiations for the revision
of proposals identified in subparagraph (A) may
be entered into.
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(d) CONVERSION OF NON-VOTING EQUITY TO VOT-
ING EQUITY.—Prior to the solicitation for proposals, as
provided under subsection (b)(2), the Secretary shall, by
regulation, issue rules setting forth the circumstances
under which the Federal Government’s 60 percent non-
voting equity ownership may be converted into voting eq-
uity ownership in order to meet the objectives of this Act
or otherwise protect the interests of the American tax-
payers.
SEC. 203. DIRECTORS, OFFICERS, AND EMPLOYEES.
(a) BOARD OF DIRECTORS.—
(1) APPOINTMENT
AND
NUMBER.—The Cor-
poration shall have a board of directors consisting of
individuals who are citizens of the United States, of
whom one shall be elected by the board to serve as
chairman. The members of the board shall be elected
annually by the stockholders of the Corporation.
(2) 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
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with whom he is negotiating or has any arrangement
concerning perspective 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.
(3) COMPENSATION OF THE BOARD.—The rate
of compensation of members of the Board shall be
fixed by the stockholders of the Corporation. Funds
for such compensation shall be drawn exclusively
from the capital and earnings of the Corporation
and shall not be drawn from moneys contained in
the Fund established under title III.
(4) 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 title 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
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deems necessary to carry out the provisions of this
Title and the functions of the Corporation.
(2) 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, parent, sibling, partner, or organization,
other than the Corporation, in which he is serving
as an officer, director, trustee, partner, or employee,
or any person with whom he is negotiating or has
any arrangement concerning perspective employ-
ment, has a financial interest in the matter. An offi-
cer or employee who violates this paragraph shall be
subject to termination, but such a violation shall not
impair, nullify, or otherwise affect the validity of any
otherwise lawful action by the Corporation in which
such officer or employee participated.
(3) COMPENSATION OF OFFICERS AND EMPLOY-
EES.—The rate of compensation of the chief execu-
tive officer, and all officers and employees, of the
Corporation shall be fixed by the board. Provided,
however, that at its discretion, the Board may dele-
gate to the chief executive officer, subject to the pro-
visions of paragraph (2), the authority to fix the
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rate of compensation for other offices and employ-
ees.
(4) SOURCE OF FUNDS FOR COMPENSATION.—
Funds for compensation for the chief executive offi-
cer, and for all officers and employees, shall not be
drawn from moneys contained in the Fund estab-
lished under title III.
(5) TENURE.—Officers and employees shall
serve at the pleasure of the Board.
SEC. 204. GENERAL POWERS.
The corporation shall have the power to do the follow-
ing:
(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 title 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.
(6) Modify the name of the Corporation.
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SEC. 205. PROMOTION OF TECHNOLOGIES.
(a) MARKETING OF TECHNOLOGIES.—The Corpora-
tion shall undertake an aggressive, multifaceted outreach
program to increase awareness of the availability of pat-
ents, licenses, processes, and technologies to qualified con-
cerns under this Act. This program shall emphasize the
use of new information technologies, including the utiliza-
tion of cable television and the modern electronic media,
and the data base established under title I.
(b) UTILIZATION OF CABLE TELEVISION.—
(1) In implementing the outreach program pro-
vided under subsection (a) the Corporation shall
enter into contracts for the establishment of a cable
television network devoted to marketing efforts for
the commercialization of patents, licenses, processes,
and technologies—
(A) owned or held in whole or part by Fed-
eral departments, agencies, or government con-
trolled corporations,
(B) developed in Federal laboratories,
(C) arising in the course of federally fund-
ed research at educational institutions, other
units of government, or with private concerns,
and
(D) which are otherwise made available to
the government by private concerns.
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(2) Under terms negotiated between the Sec-
retary and the Corporation, the Secretary is author-
ized to make payments to the Corporation, from the
Fund established under title III, or from other au-
thorized funds, for promotional fees for the produc-
tion of segments for broadcast over cable television,
or other appropriate media, which identify—
(A) the technologies described in para-
graph (1),
(B) their potential commercial applica-
tions, and
(C) methods available for obtaining addi-
tional information on the technologies.
(c) 
TECHNICAL
ASSISTANCE.—The 
Corporation
shall, upon request, provide technical assistance and serv-
ices, as appropriate and needed, to qualified concerns
under this title. The Corporation may charge fees for tech-
nical assistance and services provided under this section
in amounts sufficient to cover the reasonable cost of such
assistance and services. The Corporation may waive such
fees on a case-by-case basis.
(d) OUTREACH TO SPECIFIC AREAS.—The Corpora-
tion shall seek to ensure that qualified concerns located
in areas determined by the Secretary of Commerce to—
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(1) have a depressed economy or chronically
high unemployment,
(2) have been adversely affected by the loss of
jobs attributable to the North American Free Trade
Agreement, or
(3) be designated Federal empowerment zones
or enterprise communities,
are notified of the availability assistance through the pro-
gram established under this title and, to the extent prac-
ticable, to encourage and facilitate the participation of
such qualified concerns in such program.
SEC. 206. AUTHORITY TO REPRESENT THE GOVERNMENT.
(a) IN GENERAL.—In accordance with regulations
promulgated by the Secretary, the Corporation shall act
as the sole agent, and represent the interests, of the Fed-
eral Government in facilitating the transfer of patents, li-
censes, processes, and technologies to qualified concerns
under this Act.
(b) RIGHTS OF QUALIFIED CONCERNS.—In accord-
ance with regulations promulgated by the Secretary, the
Corporation is authorized to convey, to qualified concerns,
under terms and conditions to be negotiated between the
Corporations and qualified concerns, title, exclusive li-
cense, non-exclusive license, or other rights which may be
necessary and appropriate to facilitate the commercializa-
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tion of patents, licenses, processes, and technologies as
provided under this Act.
(c) MINIMUM RIGHTS OF THE FEDERAL GOVERN-
MENT.—In the conveyance of rights to qualified concerns
as provided for under subsection (b), the Corporation shall
ensure the following:
(1) The conveyance agreement contains lan-
guage providing for the right of the Corporation to
revoke the rights provided under subsection (b) if—
(A) the qualified concern does not dem-
onstrate that it is undertaking a good faith ef-
fort to achieve the commercialization of the pat-
ent, license, process, or technology; or
(B) the Secretary certifies that the inter-
ests of national security or the general welfare
of the American people necessitates the revoca-
tion of such rights.
(2) The Federal Government retains a license
to such patents, processes, and technologies for its
own use.
(3) The Federal Government receives in com-
pensation for the conveyance of such rights—
(A) royalty fees,
(B) partial equity ownership in the quali-
fied concerns to whom such rights are conveyed,
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(C) the right to share in the earnings of
the qualified entity proportionate to the value of
the rights so conveyed, or
(D) a sum of money or other compensation
that the Corporation determines to be appro-
priate.
SEC. 207. FINANCING OF CORPORATION.
(a) CAPITAL STOCK.—The corporation is authorized
to issue and have outstanding, in such amounts as it shall
determine, shares of capital stock, without par value,
which shall carry voting rights and be eligible for divi-
dends.
(b) NONVOTING SECURITY ISSUES
AND CERTIFI-
CATES OF INDEBTEDNESS.—The corporation is author-
ized to issue, in addition to the stock authorized by sub-
section (a) of this section, nonvoting securities, bonds, de-
bentures, and other certificates of indebtedness as it may
determine.
SEC. 208. CONSULTATION WITH FEDERAL AGENCIES, AND
WITH PRIVATE PARTIES.
(a) CONSULTATION WITH FEDERAL AGENCIES.—In
carrying out this title, the Board and the Corporation
shall consult frequently with the Department of Com-
merce, and such Federal agencies and departments as is
appropriate, to ensure coordination and the maximum uti-
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lization of all related Federal resources to promote tech-
nology transfer and commercialization.
(b) SECURITY CLEARANCE
FOR CERTAIN OFFI-
CERS.—Officers of the Corporation with the appropriate
national security clearances shall have access to informa-
tion in the data base, established under title I, which has
been otherwise restricted because of national security con-
siderations. If such officers, upon review of information
on technologies which have been restricted in the data
base, have reason to believe that information on selected
technologies has been unnecessarily restricted, the officers
shall so inform the Secretary and request that the Sec-
retary review the appropriateness of the restriction on in-
formation.
(c) CONSULTATION WITH PRIVATE PARTIES.—In
carrying out this title, the Board and the Corporation
shall solicit comments from private parties, including rep-
resentatives of finance, industry, and organized labor on
the role of the Corporation and the needs of private par-
ties.
SEC. 209. REVIEW OF CORPORATION.
(a) NATIONAL ACADEMY OF SCIENCES REVIEW.—
Not later than 9 years after the date of enactment of this
Act, the National Academy of Sciences shall conduct a re-
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view of the performance of the Corporation to determine
whether the Corporation—
(1) has had an overall positive effect on the
ability of United States industry to commercialize
and adopt new technologies;
(2) has invested in projects that exhibited a
reasonable potential for success;
(3) has successfully promoted and facilitated
the transfer and commercialization of patents, li-
censes, processes, and technologies developed in Fed-
eral laboratories, arising in the course of federally
funded research at colleges and universities, other
units of government, or with private concerns, and
which are made available by private concerns; and
(4) should be terminated.
(b) REPORT.—Upon completion of the review re-
ferred to in subsection (a), the Academy shall submit a
report to the President, the Congress, and the Corpora-
tion. If the Academy determines that the Corporation
should be terminated, the report shall include a rec-
ommended termination date.
SEC. 210. AUDIT BY COMPTROLLER GENERAL.
The Comptroller General of the United States is au-
thorized to audit the financial transactions of the Corpora-
tion. For the purposes of carrying out such an audit, the
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Comptroller General shall have access to all books,
records, and property belonging to, or in the possession
of, the Corporation. In the case of a person or entity which
has entered into a financial relationship with the Corpora-
tion, the Comptroller General shall have access only to
those books, records, and property belonging to, or in the
possession of, the person or entity which pertain to the
Corporation 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. 211. 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, and analysis of the rate of re-
turn of projects in which the Corporation participated, and
projections of future activities, expenditures, and invest-
ments.
(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.
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Such report shall contain the type of information referred
to in subsection (a).
SEC. 212. 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) NECESSARY EXPENSES.—The Board may incur
such necessary expenses and exercise such powers as are
consistent and reasonably required to perform its func-
tions.
(d) RECORDS.—To the extent permitted by law, all
appropriate records and papers of the Board shall be made
available for public inspection.
(e) 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
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(2) detail for temporary duty, on a reimburs-
able basis, such personnel as the Board deems nec-
essary to carry out its functions.
SEC. 213. MISCELLANEOUS PROVISIONS.
(a) JURISDICTION.—
(1) IN GENERAL.—Whenever the Corporation is
a party to any civil action under this title, 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) BUSINESS ACTIVITY AND QUALIFICATION.—The
Corporation shall be deemed to be qualified to do business
in each State in which it performs any activity authorized
under this title.
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TITLE III—COMMERCIALIZATION
FINANCING
SEC. 301. TECHNOLOGY TRANSFER INVESTMENT FUND.
(a) ESTABLISHMENT
OF FUND.—There is estab-
lished in the Treasury of the United States the Technology
Transfer Investment Fund. The Fund shall be adminis-
tered by the Technology Transfer and Commercialization
Financing Corporation, as provided in title II, in order
to carry out the purposes of this Act. The Fund shall con-
sist of the amounts appropriated under subsection (b).
(b) AUTHORIZATION OF APPROPRIATION.—There is
authorized to be appropriated to the Fund, to remain
available until expended, $3,000,000,000 for fiscal year
1995, 
$3,000,000,000 
for 
fiscal 
year 
1996,
$3,000,000,000 for fiscal year 1997, $3,000,000,000 for
fiscal year 1998, and $3,000,000,000 for fiscal year 1999.
(c) EXPENDITURES FROM THE FUND.—Amounts in
the Fund shall be made available without fiscal year limi-
tation to the Corporation for the purposes of promoting
the transfer and commercialization of technologies, as pro-
vided under section 205, and for providing financial sup-
port, through direct investment, loans, loan guarantees,
licenses, equity positions, and joint venture partnerships,
to United States based consortia, private United States
businesses, and educational institutions participating in
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joint projects with private United States businesses, for
the development and commercialization of patents, li-
censes, processes, and technologies—
(1) owned or held in whole or part by Federal
departments, agencies, or government controlled cor-
porations,
(2) developed in Federal laboratories,
(3) arising in the course of federally funded re-
search at educational institutions, other units of gov-
ernment, or with private concerns, or
(4) which are otherwise made available by pri-
vate concerns.
(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. 302. LOAN AND LOAN GUARANTEE AUTHORITY.
Funds authorized under section 301 may be used by
the Corporation to enter into agreements to make loans