SEC. 352. TECHNICAL ASSISTANCE FOR LICENSEES AND
QUALIFIED BUSINESS CONCERNS.
(a) TECHNICAL ASSISTANCE.—The Secretary shall,
upon request, provide technical assistance and services, as
appropriate and needed, to licensees and to qualified busi-
ness concerns receiving financial assistance under this sub-
title, and shall ensure that such qualified business concerns
have ready access to appropriate assistance available under
title III of the Stevenson-Wydler Technology Innovation Act
of 1980, or under any other Act, in order to aid such quali-
fied business concerns in their development or utilization
of critical or other advanced technologies. Technical assist-
ance and services under this subsection shall include provid-
ing licensees and qualified business concerns with—
(1) an assessment of the technological and sci-
entific feasibility of a project, or an analysis of a spe-
cific field of technical or scientific endeavor;
(2) improved access to technology developed by
the Institute and assistance in obtaining access to
technology developed by other Federal agencies and
laboratories;
(3) expert analysis of the economics of technology
development undertaken by a qualified business con-
cern; and
(4) any other assistance or service that the
Under Secretary determines, after consultation with
licensees and qualified business concerns, is necessary
and appropriate to enhance prospects for success and
to reduce technical risk for licensees and qualified
business concerns.
(b) FEES.—The Secretary may charge fees for services
and technical assistance provided under subsection (a) in
amounts sufficient to cover the reasonable cost of such serv-
ices and assistance. The Secretary may waive fees estab-
lished under this subsection.
SEC. 353. PERFORMANCE MEASURES; ANNUAL REPORT.
(a) PERFORMANCE MEASURES.—The performance of
the program established under this subtitle shall be evalu-
ated relative to progress made in achieving its purposes and
shall be measured in relevant and meaningful terms such
as significant accomplishments in advancing technology,
businesses formed and financed, jobs created, taxes gen-
erated, licenses granted and maintained, capital invested,
and other criteria the Under Secretary may deem appro-
priate.
(b) ANNUAL REPORT.—The Under Secretary shall pre-
pare, in consultation with the advisory committee estab-
lished under section 344, and submit annually a report to
the Congress containing a full and detailed account of oper-
ations under this subtitle. Such report shall include—
(1) an assessment of progress made in achieving
the purposes of this subtitle;
(2) performance measures established under sub-
section (a);
(3) a list of licensees along with their location,
area of operations, investment objectives, capitaliza-
tion, and net asset value, both at cost and at current
fair market value;
(4) an audit setting forth the amount, type, re-
cipient, and source of disbursements, receipts, and
losses sustained by the Federal Government as a re-
sult of operations under this subtitle during the pre-
ceding fiscal year and since inception of the program;
(5) the Under Secretary’s plans to ensure the
provision of licensee financing to all areas of the
country and to all qualified business concerns, and
plans to notify and to encourage and facilitate the
participation of qualified business concerns as re-
quired by section 343(e), including steps taken to ac-
complish those goals;
(6) steps taken by the Under Secretary to carry
out this subtitle and to ensure compliance with statu-
tory and regulatory standards relating thereto; and
(7) recommendations with respect to program
changes, statutory changes, and other matters, includ-
ing tax incentives, to improve and facilitate the oper-
ations of licensees and to encourage the use of their
financing facilities by qualified business concerns.
SEC. 354. REPORTS, INVESTIGATIONS, AND EXAMINATIONS.
(a) REPORTING REQUIREMENTS.—Each license issued
under this subtitle shall require a licensee with outstanding
preferred securities to provide the Under Secretary such in-
formation, including companies financed, disbursements
made along with associated terms and conditions, receipts,
portfolio valuation and net asset value at cost and at esti-
mated fair market value, and other financial statements,
that the Under Secretary may require to satisfy the require-
ments of section 353(b) and to determine, in a timely man-
ner, compliance with this subtitle and regulations promul-
gated under this subtitle. Such reporting shall be—
(1) except as otherwise provided in this sub-
section, consistent with the reporting practices and
standards of the venture capital industry;
(2) uniform for all licensees;
(3) submitted annually to the Under Secretary,
with valuation and other information provided more
frequently as the Under Secretary may require; and
(4) certified by the Board of Directors or the
General Partners of the licensee.
The Under Secretary may exempt from making such reports
any licensee which is registered under the Investment Com-
pany Act of 1940 only to the extent necessary to avoid du-
plication in reporting requirements.
(b) VALUATIONS.—The Under Secretary shall, by regu-
lation, establish guidelines for estimating the fair market
value of investments held by a licensee as required under
subsection (a). The board of directors of a corporate licensee
and the general partners of a partnership licensee shall have
the sole responsibility for making a good faith determina-
tion of the fair market value of investments held by such
licensee, based on guidelines established under this sub-
section.
(c) INVESTIGATIONS.—The Secretary may undertake
investigations to determine whether a licensee or any other
person has engaged or is about to engage in any acts or
practices which constitute or will constitute a violation of
any provision of this subtitle, or of any rule, regulation,
or order issued under this subtitle. The Secretary shall per-
mit any person to file a statement in writing, under oath
or otherwise as the Secretary shall determine, as to all the
facts and circumstances concerning the matter to be inves-
tigated. For the purpose of any investigation, the Secretary
is empowered to administer oaths and affirmations, sub-
poena witnesses, compel their attendance, take evidence,
and require the production of any books, papers, and docu-
ments which are relevant to the inquiry.
(d) EXAMINATIONS.—Each licensee shall be subject to
examinations made at the discretion and direction of the
Under Secretary by examiners selected or approved by, and
under the supervision of, the Under Secretary. The Under
Secretary may enter into contracts with private parties to
perform such examinations. The cost of such examinations,
including the compensation of the examiners, may in the
discretion of the Under Secretary be assessed against the
licensee examined and when so assessed shall be paid by
such licensee.
SEC. 355. REVOCATION AND SUSPENSION OF LICENSES;
CEASE AND DESIST ORDERS.
(a) GROUNDS FOR REVOCATION OR SUSPENSION.—A
license may be revoked or suspended by the Secretary—
(1) for willful or repeated violation of any provi-
sion of this subtitle or any rule, regulation, or order
issued thereunder; or
(2) if the licensee no longer serves the purposes
for which it was granted a license.
(b) CEASE AND DESIST ORDERS.—Where a licensee or
any other person has not complied with any provision of
this subtitle, or of any rule, regulation, or order issued
thereunder, or is engaging or is about to engage in any acts
or practices which constitute or will constitute a violation
of such provision, rule, regulation, or order, the Secretary
may order such licensee or other person to cease and desist
from such action or failure to act. The Secretary may fur-
ther order such licensee or other person to take such action
or to refrain from such action as the Secretary considers
necessary to ensure compliance with such provisions, rules,
regulations, or orders. The Secretary may also suspend the
license of a licensee, against whom an order has been issued,
until such licensee complies with such order.
(c) SUBPOENAS.—The Secretary may require by sub-
poenas the attendance and testimony of witnesses and the
production of all books, papers, and documents relating to
the hearing from any place in the United States.
(d) ENFORCEMENT.—If any licensee or other person
against which or against whom an order is issued under
this section fails to obey the order, the Secretary may apply
to the district court of the United States for the district
where the licensee has its principal place of business, for
the enforcement of the order.
SEC. 356. INJUNCTIVE RELIEF.
(a) IN GENERAL.—If the Secretary determines that a
licensee or any other person has engaged, or is about to en-
gage, in any acts or practices which constitute a violation
of any provision of this subtitle, or of any rule, regulation,
or order issued under this subtitle, the Secretary may apply
to the appropriate district court of the United States for
injunctive relief.
(b) RECEIVERSHIP.—Whenever it is necessary in order
to achieve the purposes of injunctive relief granted under
subsection (a), and upon proper application by the Sec-
retary, the court may order the attachment of assets of a
licensee and may appoint a receiver to administer such as-
sets under the direction of the court.
SEC. 357. CONFLICTS OF INTEREST.
For the purpose of controlling conflicts of interest
which may be detrimental to qualified business concerns,
to licensees, to the shareholders or partners of either, or to
the purposes of this subtitle, the Under Secretary shall
adopt regulations to govern transactions with any officer,
director, shareholder, or partner of any licensee, or with
any person or concern, in which any interest, direct or in-
direct, financial or otherwise, is held by any officer, direc-
tor, shareholder, or partner of (1) any licensee, or (2) any
person or concern with an interest, direct or indirect, finan-
cial or otherwise, in any licensee. Such regulations shall
include appropriate requirements for public disclosure (in-
cluding disclosure in the locality most directly affected by
the transaction) necessary to the purposes of this section.
SEC. 358. REMOVAL OR SUSPENSION OF DIRECTORS AND
OFFICERS.
(a) GROUNDS.—The Secretary, after an opportunity
for agency hearing, may serve upon any director or officer
of a licensee a written notice of its intention to remove such
director or officer from office, temporarily or permanently,
whenever in the opinion of the Secretary such director or
officer—
(1) has willfully and knowingly—
(A) committed any substantial violation of
this subtitle or any rule, regulation, or order is-
sued under this subtitle; or
(B) committed or engaged in any act, omis-
sion, or practice which constitutes a substantial
breach of his fiduciary duty as such director or
officer,
and that such violation or such breach of fiduciary
duty is one involving personal dishonesty on the part
of such director or officer; or
(2) has been convicted of a felony involving dis-
honesty or breach of trust.
(b) HEARING.—A hearing under this section shall be
on the record and shall be held in the Federal judicial dis-
trict or in the territory in which the principal office of the
licensee is located unless the party afforded the hearing con-
sents to another place. A hearing under this section shall
be fixed for a date not earlier than 30 days nor later than
60 days after the date of service of such notice, unless an
earlier or a later date is set by the Secretary at the request
of (1) such director or officer and for good cause shown,
or (2) the Attorney General of the United States. Unless
such director or officer shall appear at the hearing in per-
son or by a duly authorized representative, he shall be
deemed to have consented to the issuance of an order of such
removal.
SEC. 359. VIOLATIONS.
(a) PARTICIPATION.—Whenever a licensee commits a
violation of this subtitle, or any rule, regulation, or order
issued under this subtitle, such violation shall be deemed
to be also a violation on the part of any person who, directly
or indirectly, authorizes, orders, participates in, or causes,
brings about, counsels, aids, or abets in the commission of
such violation.
(b) BREACH OF FIDUCIARY DUTY.—It shall be a viola-
tion of this subtitle for any officer, director, employee,
agent, or other participant in the management or conduct
of the affairs of a licensee to engage in any act or practice,
or to omit any act, in breach of his fiduciary duty as such
officer, director, employee, agent, or participant, if, as a
result thereof, the licensee has suffered or is in imminent
danger of suffering financial loss or other damage.
(c) DISQUALIFICATION.—Except with the written con-
sent of the Secretary, it shall be a violation of this subtitle
for any person to take office, or to continue to serve, as
an officer, director, or employee of a licensee, or to become
or continue to serve as an agent or participant in the con-
duct of the affairs or management of a licensee, if such per-
son—
(1) has been convicted of a felony, or any other
criminal offense involving dishonesty or breach of
trust; or
(2) has been found civilly liable in damages, or
has been permanently or temporarily enjoined by an
order, judgment, or decree of a court of competent ju-
risdiction, by reason of any act or practice involving
fraud or breach of trust.
SEC. 360. CIVIL PENALTIES.
Any person who is found by the Secretary, after notice
and opportunity to be heard on the record in accordance
with section 554 of title 5, United States Code, to have com-
mitted a violation of this subtitle or any rule, regulation,
or order issued under this subtitle shall be liable to the Unit-
ed States for a civil penalty of not more than $1,000 for
each violation. Each day of a continuing violation shall
constitute a separate violation. The amount of such civil
penalty shall be assessed by the Secretary by written notice.
The Secretary may compromise, modify, or remit, with or
without conditions, any civil penalty which is subject to
imposition or which has been imposed under this section.
SEC. 361. ANTITRUST SAVINGS CLAUSE.
This subtitle shall not be construed to modify, impair,
or supersede the operation of the antitrust laws. For pur-
poses of this section, the term ‘‘antitrust laws’’ has the
meaning given it in subsection (a) of the first section of
the Clayton Act (15 U.S.C. 12(a)), except that such term
includes the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C.
13 et seq.), commonly known as the Robinson Patman Act,
and section 5 of the Federal Trade Commission Act (15
U.S.C. 45) to the extent that such section 5 applies to unfair
methods of competition.
TITLE IV—MISCELLANEOUS
SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY ADVI-
SORY BOARD.
(a) ESTABLISHMENT.—There is established a Depart-
ment of Commerce Technology Advisory Board (in this sec-
tion referred to as the ‘‘Advisory Board’’) to assist the Tech-
nology Administration in the performance of its functions.
(b) COMPOSITION.—The Advisory Board shall be com-
posed of at least 17 members, appointed by the Under Sec-
retary from among individuals who, because of their experi-
ence and accomplishments are exceptionally qualified to
provide advice to the Under Secretary on the plans, pro-
grams, and policy of the Technology Administration. The
Under Secretary shall make an effort to ensure the appoint-
ment of socially and economically disadvantaged individ-
uals (within the meaning of section 8(a)(5) and (6) of the
Small Business Act, and including women) to the Advisory
Board. The Under Secretary shall designate 1 member to
chair the Advisory Board. Membership of the Advisory
Board shall include representatives of—
(1) United States small businesses;
(2) other United States manufacturers;
(3) research universities and independent re-
search institutes;
(4) State and local government agencies involved
in technology extension;
(5) national laboratories;
(6) industrial, worker, and professional organi-
zations;
(7) financial organizations; and
(8) computing and communications equipment
and services providers.
(c) DUTIES.—The duties of the Advisory Board shall
include advising the Secretary, the Under Secretary, and
the Director regarding—
100
(1) the development of policies and options for
implementation that the Advisory Board considers es-
sential to technology creation, development, and adop-
tion, including policies that would benefit small busi-
nesses;
(2) the development and rapid application of
critical and other advanced technologies, including
advanced manufacturing technologies;
(3) the development of computer and commu-
nications support services for advanced manufactur-
ing; and
(4) the planning, execution, and evaluation of
programs under the authority of the Technology Ad-
ministration.
(d) MEETINGS.—(1) The chairman shall call the first
meeting of the Advisory Board not later than 90 days after
the date of enactment of this Act.
(2) The Advisory Board shall meet at least once every
6 months, and at the call of the Under Secretary.
(e) TRAVEL EXPENSES.—Members of the Advisory
Board, other than full-time employees of the United States,
shall be allowed travel expenses in accordance with sub-
chapter I of chapter 57 of title 5, United States Code, while
engaged in the business of the Advisory Board.
101
(f) CONSULTATION.—In carrying out this section, the
Under Secretary shall consult with other agencies, as ap-
propriate.
(g) TERMINATION.—Section 14 of the Federal Advisory
Committee Act shall not apply to the Advisory Board.
(h) SECRETARIAL DISCRETION.—Notwithstanding any
other provision of this section, the Secretary shall have the
discretion to decide whether to establish the Advisory Board
or create a more cost-effective way to achieve the goal of
closer cooperation with industry. If the Secretary exercises
such discretion and establishes an alternative mechanism,
the Under Secretary shall make an effort to ensure the par-
ticipation of socially and economically disadvantaged indi-
viduals (within the meaning of section 8(a)(5) and (6) of
the Small Business Act, and including women) in the alter-
native mechanism.
SEC. 402. INTERNATIONAL STANDARDIZATION.
(a) FINDINGS.—The Congress finds that—
(1) private sector consensus standards are essen-
tial to the timely development of competitive products;
(2) Federal Government contribution of resources
and more active participation in the voluntary stand-
ards process in the United States can increase the
quality of United States standards, increase their
compatibility with the standards of other countries,
102
and ease access of products manufactured by United
States manufacturers to foreign markets; and
(3) the Federal Government, working in coopera-
tion with private sector organizations including trade
associations, engineering societies, and technical bod-
ies, can effectively promote United States Government
use of United States consensus standards and, where
appropriate, the adoption and United States Govern-
ment use of international standards.
(b) STANDARD PILOT PROGRAM.—Section 104(e) of
the American Technology Preeminence Act of 1991 is
amended—
(1) by inserting ‘‘(1)’’ before ‘‘Pursuant to the’’;
(2) by striking ‘‘matching funds’’ and inserting
in lieu thereof ‘‘financial contributions deemed appro-
priate by the Secretary’’; and
(3) by adding at the end the following new para-
graph:
‘‘(2) As necessary and appropriate, the Institute shall
expand the program established under section 112 of the
National Institute of Standards and Technology Authoriza-
tion Act for Fiscal Year 1989 (15 U.S.C. 272 note) by ex-
tending the existing program to include other countries that
request assistance with standards-related activities from of-
ficial representatives of the United States Government. The
103
Institute may enter into additional contracts with non-Fed-
eral organizations representing United States companies,
as such term is defined in section 28(d)(9)(B) of the Na-
tional Institute of Standards and Technology Act (15
U.S.C. 278n(d)(9)(B)) or with United States-based profes-
sional societies who participate in the development of stand-
ards. Such contracts shall require cost sharing between Fed-
eral and non-Federal sources for such purposes. In award-
ing such contracts, the Institute shall seek to promote and
support the dissemination of United States technical stand-
ards to additional foreign countries and shall seek, as the
Director deems appropriate, to promote the adoption of
international standards supported by United States indus-
try, and shall seek to assist private sector professional soci-
eties which participate in the development of standards in
expediting the development of domestic standards which en-
able the introduction of technologies, products, or tech-
nology-based services which are being delayed due to the
lack of available standards. The Institute and such contrac-
tors shall, in carrying out the preceding sentence, cooperate
with governmental bodies, private organizations including
standards setting organizations and industry, and multi-
national institutions that promote economic development.
The organizations receiving such contracts may establish
training programs to bring to the United States foreign
104
standards experts for the purpose of receiving in-depth
training in the United States standards system.’’.
(c) REPORT ON STANDARDS.—(1) Section 508(a) of the
American Technology Preeminence Act of 1991 (15 U.S.C.
3701 note) is amended—
(A) by inserting ‘‘standards development and
international’’ after ‘‘a thorough review of inter-
national’’;
(B) by redesignating paragraphs (1) through (5)
as paragraphs (2) through (6), respectively; and
(C) by inserting before paragraph (2), as so re-
designated by subparagraph (B) of this paragraph,
the following new paragraph:
‘‘(1) Current and potential future roles of the
Federal Government in the development and promul-
gation of domestic and global product and process
standards.’’.
(2) The Secretary, in consultation with the Institute
and the Department of Commerce Technology Advisory
Board established under section 401 of this Act and with,
as appropriate, the active participation of the private sec-
tor, shall submit to the Congress a report describing the ap-
propriate roles of the Department of Commerce in aid to
United States companies in achieving conformity assess-
ment and accreditation and otherwise qualifying their
105
products in foreign markets, through the development and
promulgation of domestic and global product and quality
standards, and through the implementation of conformity
assessment and accreditation procedures based upon such
standards, including a discussion of the extent to which
each of the policy options provided in the March 1992 Office
of Technology Assessment report, entitled ‘‘Global Stand-
ards’’, contributes to meeting the goals of—
(A) increasing the international adoption of
standards beneficial to United States industries; and
(B) improving the coordination of United States
representation to international standards setting bod-
ies.
(3) The report shall also describe emerging product
and market areas which can be assisted by shortening the
time required for the development of standards and make
recommendations on contributions the Department of Com-
merce can make to improving the timeliness of standards
development.
SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.
(a) Section 108(c)(3) of the Stevenson-Wydler Tech-
nology Innovation Act of 1980, as so redesignated by section
206(b)(3) of this Act, is amended to read as follows:
106
‘‘(3) No award shall be made within any category or
subcategory if there are no qualifying enterprises in that
category or subcategory.’’.
(b)(1) Section 108(c)(1) of the Stevenson-Wydler Tech-
nology Innovation Act of 1980, as so redesignated by section
206(b)(3) of this Act, is amended by adding at the end the
following new subparagraph:
‘‘(D) Educational institutions.’’.
(2)(A) Within 1 year after the date of enactment of
this Act, the Secretary shall submit to the Congress a report
containing—
(i) criteria for qualification for a Malcolm
Baldrige National Quality Award by various classes
of educational institutions;
(ii) criteria for the evaluation of applications for
such awards under section 108(d)(1) of the Stevenson-
Wydler Technology Innovation Act of 1980, as so re-
designated by section 206(b)(3) of this Act; and
(iii) a plan for funding awards described in
clause (i).
(B) In preparing the report required under subpara-
graph (A), the Secretary shall consult with the National
Science Foundation and other public and private entities
with appropriate expertise, and shall provide for public no-
tice and comment.
107
(C) The Secretary shall not accept applications for
awards described in subparagraph (A)(i) until after the re-
port required under subparagraph (A) is submitted to the
Congress.
SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENTS.
Section 202 of the Stevenson-Wydler Technology Inno-
vation Act of 1980 (15 U.S.C. 3710a), as redesignated by
section 206(b)(5) of this Act, is amended—
(1) in subsection (d)(1), by inserting ‘‘(including
both real and personal property)’’ after ‘‘or other re-
sources’’ both places it appears; and
(2) in subsection (d)(2)(A), by inserting ‘‘includ-
ing Federal test and evaluation facilities,’’ after ‘‘by
a Federal agency,’’.
SEC. 405. COMPETITIVENESS ASSESSMENTS AND EVALUA-
TIONS.
Section 101(e) of the Stevenson-Wydler Technology In-
novation Act of 1980, as so redesignated by section
206(b)(2) of this Act, is amended to read as follows:
‘‘(e) COMPETITIVENESS ASSESSMENTS AND EVALUA-
TIONS.—(1) The Secretary, through the Under Secretary,
shall—
‘‘(A) provide for the conduct of research and
analyses to advance knowledge of the ways in which
108
the economic competitiveness of United States compa-
nies can be enhanced through Federal programs estab-
lished under the National Competitiveness Act of 1993
or the amendments made by that Act; and
‘‘(B) as appropriate, provide for evaluations of
Federal technology programs established or expanded
under the National Competitiveness Act of 1993 or the
amendments made by that Act in order to judge their
effectiveness and make recommendations to improve
their contribution to United States competitiveness.
‘‘(2) All executive departments and agencies shall as-
sist the Secretary in carrying out this section as appro-
priate.
‘‘(3) Nothing in this section shall authorize the release
of information to, or the use of information by, the Sec-
retary or Under Secretary in a manner inconsistent with
law or any procedure established pursuant thereto.
‘‘(4) The head of any Federal agency may detail such
personnel and may provide such services, with or without
reimbursement, as the Secretary may request to assist in
carrying out the activities required under this section.’’.
SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECH-
NOLOGIES.
Within 9 months after the date of enactment of this
Act, the Critical Technologies Institute (in this section re-
109
ferred to as the ‘‘Institute’’) established under section 822
of the National Defense Authorization Act for Fiscal Year
1991 shall, after consultation with the private sector and
appropriate officials from other Federal agencies, submit to
Congress a report on advanced lithography technologies for
the production of semiconductor devices. The report shall
include the Institute’s evaluation of the likely technical and
economic advantages and disadvantages of each such tech-
nology, an analysis of current private and Government re-
search to develop each such technology, and any rec-
ommendations the Institute may have regarding future Fed-
eral support for research and development in advanced li-
thography.
SEC. 407. AMERICAN WORKFORCE QUALITY PARTNERSHIPS.
(a) AMENDMENT.—Title III of the Stevenson-Wydler
Technology Innovation Act of 1980, as added by title II
of this Act, is further amended by adding at the end the
following new section:
‘‘SEC. 305. AMERICAN WORKFORCE QUALITY PARTNER-
SHIPS.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary may
make grants to establish and operate American workforce
quality partnership programs in accordance with the provi-
sions of this section. The Secretary shall award grants on
a competitive basis to pay the Federal share for American
110
workforce quality partnership programs to establish
workforce training consortia between industry and institu-
tions of higher education.
‘‘(b) GRANT PERIOD.—Grants awarded under this sec-
tion may be for a period of 5 years.
‘‘(c) GENERAL AUTHORITY.—Each grant recipient
shall use amounts provided under the grant to develop and
operate an American workforce quality partnership pro-
gram.
‘‘(d) 
CONTENTS
OF
PROGRAM.—An 
American
workforce quality partnership program shall establish part-
nerships among—
‘‘(1) one or more United States manufacturers;
‘‘(2) an organization or organizations represent-
ing the nonmanagerial employees of the manufactur-
ers described in paragraph (1); and
‘‘(3) a local community technical college or other
appropriate institutions of higher education, a voca-
tional training institution, a Regional Center for the
Transfer of Manufacturing Technology, a Manufac-
turing Outreach Center, or any similar entity or con-
sortium of such institutions,
to train the employees of the industrial partners through
both workplace-based and classroom-based programs of
training.
111
‘‘(e) FEDERAL SHARE.—The Federal share of the cost
of an American workforce quality partnership program
may not exceed 50 percent of the total cost of the program.
The non-Federal share of such costs may be provided in-
cash or in-kind, fairly valued. The total contribution of the
proposed partnership should reflect a substantial contribu-
tion on the part of the industrial partners and appropriate
contributions of the education partners, local or State gov-
ernments, and other appropriate entities.
‘‘(f) APPLICATIONS.—
‘‘(1) ELIGIBILITY.—Any consortium described in
subsection (d) may apply for a grant under this sec-
tion at such time and in such manner as the Sec-
retary shall prescribe.
‘‘(2) PLAN.—Each application submitted under
this subsection shall contain a plan for the develop-
ment and implementation of an American workforce
quality partnership program under this section. Such
plan shall—
‘‘(A) show a demonstrated commitment, on
the part of the industrial partners, to adopt total
quality management strategies or other plausible
strategies to renew its competitive edge;
‘‘(B) demonstrate the need for Federal re-
sources because of the long-term nature and risk
112
of such an investment, the inability to finance
such ventures because of the high cost of capital-
ization, intense competition from foreign indus-
tries, or such other appropriate reasons as may
limit the industrial partners’ ability to launch
programs where worker training and develop-
ment is a substantial component;
‘‘(C) demonstrate long-term benefit for all
partners and the local economy, through an en-
hanced competitive position of the industrial
partners, substantial benefits for regional em-
ployment, and the ability of the education and
labor participants to further their capabilities to
educate and train other nonpartnership-affili-
ated individuals wishing to obtain or upgrade
technical, technological, industrial management
and leadership, or other industrial skills;
‘‘(D) make full, appropriate, and innovative
use of industrial and higher education resources
and other local resources such as facilities, equip-
ment, personnel exchanges, experts, or consult-
ants;
‘‘(E) provide for the establishment of an ad-
visory board in accordance with subsection (h);
113
‘‘(F) include an explanation of the indus-
trial partners’ plans to adopt new competitive
strategies and how the training partnership aids
that effort; and
‘‘(G) include assurances that the eligible en-
tity will maintain its aggregate expenditures
from all sources for employee training, other
than those provided under this section, at or
above the average level of such expenditures in
the 2 fiscal years preceding submission of an ap-
plication for assistance under this section.
‘‘(3) APPROVAL.—
‘‘(A) IN GENERAL.—The Secretary shall ap-
prove applications based on their potential to
create an effective American workforce quality
partnership program in accordance with this
section.
‘‘(B) CRITERIA.—In reviewing grant appli-
cations, the Secretary shall give significant con-
sideration to the following criteria:
‘‘(i) Saliency of argument for requir-
ing a Federal investment.
‘‘(ii) Commitment of partnership to
continue operation after the termination of
Federal funding.
114
‘‘(iii) The likelihood that the training
will improve the long-term competitiveness
of the industrial partners and contribute
significantly to economic growth.
‘‘(iv) The likelihood that the partner-
ship will benefit the education mission of
the education partners in ways outside of
the scope of the partnership, such as devel-
oping 
the 
capability 
to 
train 
other
nonpartnership-affiliated 
individuals 
in
similar skills.
‘‘(C) PRIORITY CONSIDERATION.—The Sec-
retary shall give priority consideration to indus-
tries which are threatened by intense foreign
competition important to the long-term national
economic or military security of the United
States and industries which are critical in ena-
bling other United States industries to maintain
a healthy competitive position. In addition, the
Secretary shall give priority to applicants in
areas of high poverty and unemployment.
‘‘(g) USE OF FUNDS.—
‘‘(1) APPROVED USES.—Federal funds may be
used for—
115
‘‘(A) the direct costs of workplace-based and
classroom-based training in advanced technical,
technological, and industrial management, skills,
and training for the implementation of total
quality management and technology manage-
ment strategies, or other competitiveness strate-
gies, contained in the applicant’s plan submitted
under subsection (f)(2)(F);
‘‘(B) the purchase or lease of equipment or
other materials for the purpose of instruction to
aid in training;
‘‘(C) the development of in-house curricula
or coursework or other training-related pro-
grams, including the training of teachers and
other eligible participants to utilize such curric-
ula or coursework; and
‘‘(D) reasonable administrative expenses
and other indirect costs of operating the partner-
ship which may not exceed 10 percent of the
total cost of the program.
‘‘(2) LIMITATIONS.—Federal funds may not be
used for nontraining related costs of adopting new
competitive strategies including the replacement of
manufacturing equipment, product redesign and
manufacturing facility construction costs, or salary
116
compensation of the partners’ employees. Grants shall
not be made under this section for programs that will
impair any existing program, contract, or agreement
without the written concurrence of the parties to such
program, contract, or agreement.
‘‘(h) ADVISORY BOARD.—
‘‘(1) Each partnership shall establish an advi-
sory board which shall include representation from
each of the following categories:
‘‘(A) Multiple organizational levels of the
industrial partners, that shall include manage-
rial employees.
‘‘(B) The education partners.
‘‘(C) 
Organizations 
representing
nonmanagerial employees.
‘‘(2) The advisory board shall—
‘‘(A) advise the partnership on the general
direction and policy of the partnership including
training, instruction, and other related issues;
‘‘(B) report to the Secretary after the second
and fourth year of the program, on the progress
and status of the partnership, including its
strengths, weaknesses, and new directions, the
number of individuals served, types of services
provided, and an outline of how the program can