H. R. 2196—4
employees who are not an inventor of such inventions but
who substantially increased the technical value of such inven-
tions.
‘‘(iii) The agency or laboratory shall retain the royalties
and other payments received from an invention until the agency
or laboratory makes payments to employees of a laboratory
under clause (i) or (ii).
‘‘(B) The balance of the royalties or other payments shall
be transferred by the agency to its laboratories, with the major-
ity share of the royalties or other payments from any invention
going to the laboratory where the invention occurred. The royal-
ties or other payments so transferred to any laboratory may
be used or obligated by that laboratory during the fiscal year
in which they are received or during the succeeding fiscal
year—
‘‘(i) to reward scientific, engineering, and technical
employees of the laboratory, including developers of sen-
sitive or classified technology, regardless of whether the
technology has commercial applications;
‘‘(ii) to further scientific exchange among the labora-
tories of the agency;
‘‘(iii) for education and training of employees consistent
with the research and development missions and objectives
of the agency or laboratory, and for other activities that
increase the potential for transfer of the technology of
the laboratories of the agency;
‘‘(iv) for payment of expenses incidental to the adminis-
tration and licensing of intellectual property by the agency
or laboratory with respect to inventions made at that lab-
oratory, including the fees or other costs for the services
of other agencies, persons, or organizations for intellectual
property management and licensing services; or
‘‘(v) for scientific research and development consistent
with the research and development missions and objectives
of the laboratory.
‘‘(C) All royalties or other payments retained by the agency
or laboratory after payments have been made pursuant to sub-
paragraphs (A) and (B) that is unobligated and unexpended
at the end of the second fiscal year succeeding the fiscal year
in which the royalties and other payments were received shall
be paid into the Treasury.’’;
(2) in subsection (a)(2)—
(A) by inserting ‘‘or other payments’’ after ‘‘royalties’’;
and
(B) by striking ‘‘for the purposes described in clauses
(i) through (iv) of paragraph (1)(B) during that fiscal year
or the succeeding fiscal year’’ and inserting in lieu thereof
‘‘under paragraph (1)(B)’’;
(3) in subsection (a)(3), by striking ‘‘$100,000’’ both places
it appears and inserting ‘‘$150,000’’;
(4) in subsection (a)(4)—
(A) by striking ‘‘income’’ each place it appears and
inserting in lieu thereof ‘‘payments’’;
(B) by striking ‘‘the payment of royalties to inventors’’
in the first sentence thereof and inserting in lieu thereof
‘‘payments to inventors’’;
H. R. 2196—5
(C) by striking ‘‘clause (i) of paragraph (1)(B)’’ and
inserting in lieu thereof ‘‘clause (iv) of paragraph (1)(B)’’;
(D) by striking ‘‘payment of the royalties,’’ in the second
sentence thereof and inserting in lieu thereof ‘‘offsetting
the payments to inventors,’’; and
(E) by striking ‘‘clauses (i) through (iv) of’’; and
(5) by amending paragraph (1) of subsection (b) to read
as follows:
‘‘(1) by a contractor, grantee, or participant, or an employee
of a contractor, grantee, or participant, in an agreement or
other arrangement with the agency, or’’.
SEC. 6. EMPLOYEE ACTIVITIES.
Section 15(a) of the Stevenson-Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3710d(a)) is amended—
(1) by striking ‘‘the right of ownership to an invention
under this Act’’ and inserting in lieu thereof ‘‘ownership of
or the right of ownership to an invention made by a Federal
employee’’; and
(2) by inserting ‘‘obtain or’’ after ‘‘the Government, to’’.
SEC. 7. AMENDMENT TO BAYH–DOLE ACT.
Section 210(e) of title 35, United States Code, is amended
by striking ‘‘, as amended by the Federal Technology Transfer
Act of 1986,’’.
SEC. 8. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT
AMENDMENTS.
The National Institute of Standards and Technology Act (15
U.S.C. 271 et seq.) is amended—
(1) in section 10(a)—
(A) by striking ‘‘nine’’ and inserting in lieu thereof
‘‘15’’; and
(B) by striking ‘‘five’’ and inserting in lieu thereof ‘‘10’’;
(2) in section 15—
(A) by striking ‘‘Pay Act of 1945; and’’ and inserting
in lieu thereof ‘‘Pay Act of 1945;’’; and
(B) by inserting ‘‘; and (h) the provision of transpor-
tation services for employees of the Institute between the
facilities of the Institute and nearby public transportation,
notwithstanding section 1344 of title 31, United States
Code’’ after ‘‘interests of the Government’’; and
(3) in section 19—
(A) by inserting ‘‘, subject to the availability of appro-
priations,’’ after ‘‘post-doctoral fellowship program’’; and
(B) by striking ‘‘nor more than forty’’ and inserting
in lieu thereof ‘‘nor more than 60’’.
SEC. 9. RESEARCH EQUIPMENT.
Section 11(i) of the Stevenson-Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3710(i)) is amended by inserting ‘‘loan,
lease, or’’ before ‘‘give’’.
SEC. 10. PERSONNEL.
The personnel management demonstration project established
under section 10 of the National Bureau of Standards Authorization
Act for Fiscal Year 1987 (15 U.S.C. 275 note) is extended indefi-
nitely.
H. R. 2196—6
SEC. 11. FASTENER QUALITY ACT AMENDMENTS.
(a) SECTION 2 AMENDMENTS.—Section 2 of the Fastener Quality
Act (15 U.S.C. 5401) is amended—
(1) by striking subsection (a)(4), and redesignating para-
graphs (5) through (9) as paragraphs (4) through (8), respec-
tively;
(2) in subsection (a)(7), as so redesignated by paragraph
(1) of this subsection, by striking ‘‘by lot number’’; and
(3) in subsection (b), by striking ‘‘used in critical applica-
tions’’ and inserting in lieu thereof ‘‘in commerce’’.
(b) SECTION 3 AMENDMENTS.—Section 3 of the Fastener Quality
Act (15 U.S.C. 5402) is amended—
(1) in paragraph (1)(B) by striking ‘‘having a minimum
tensile strength of 150,000 pounds per square inch’’;
(2) in paragraph (2), by inserting ‘‘consensus’’ after ‘‘or
any other’’;
(3) in paragraph (5)—
(A) by inserting ‘‘or’’ after ‘‘standard or specification,’’
in subparagraph (B);
(B) by striking ‘‘or’’ at the end of subparagraph (C);
(C) by striking subparagraph (D); and
(D) by inserting ‘‘or produced in accordance with ASTM
F 432’’ after ‘‘307 Grade A’’;
(4) in paragraph (6) by striking ‘‘other person’’ and inserting
in lieu thereof ‘‘government agency’’;
(5) in paragraph (8) by striking ‘‘Standard’’ and inserting
in lieu thereof ‘‘Standards’’;
(6) by striking paragraph (11) and redesignating para-
graphs (12) through (15) as paragraphs (11) through (14),
respectively;
(7) in paragraph (13), as so redesignated by paragraph
(6) of this subsection, by striking ‘‘, a government agency’’
and all that follows through ‘‘markings of any fastener’’ and
inserting in lieu thereof ‘‘or a government agency’’; and
(8) in paragraph (14), as so redesignated by paragraph
(6) of this subsection, by inserting ‘‘for the purpose of achieving
a uniform hardness’’ after ‘‘quenching and tempering’’.
(c) SECTION 4 REPEAL.—Section 4 of the Fastener Quality Act
(15 U.S.C. 5403) is repealed.
(d) SECTION 5 AMENDMENTS.—Section 5 of the Fastener Quality
Act (15 U.S.C. 5404) is amended—
(1) in subsection (a)(1)(B) and (2)(A)(i) by striking ‘‘sub-
sections (b) and (c)’’ and inserting in lieu thereof ‘‘subsections
(b), (c), and (d)’’;
(2) in subsection (c)(2) by striking ‘‘or, where applicable’’
and all that follows through ‘‘section 7(c)(1)’’;
(3) in subsection (c)(3) by striking ‘‘, such as the chemical,
dimensional, physical, mechanical, and any other’’;
(4) in subsection (c)(4) by inserting ‘‘except as provided
in subsection (d),’’ before ‘‘state whether’’; and
(5) by adding at the end the following new subsection:
‘‘(d) ALTERNATIVE PROCEDURE
FOR CHEMICAL CHARACTERIS-
TICS.—Notwithstanding the requirements of subsections (b) and
(c), a manufacturer shall be deemed to have demonstrated, for
purposes of subsection (a)(1), that the chemical characteristics of
a lot conform to the standards and specifications to which the
H. R. 2196—7
manufacturer represents such lot has been manufactured if the
following requirements are met:
‘‘(1) The coil or heat number of metal from which such
lot was fabricated has been inspected and tested with respect
to its chemical characteristics by a laboratory accredited in
accordance with the procedures and conditions specified by
the Secretary under section 6.
‘‘(2) Such laboratory has provided to the manufacturer,
either directly or through the metal manufacturer, a written
inspection and testing report, which shall be in a form pre-
scribed by the Secretary by regulation, listing the chemical
characteristics of such coil or heat number.
‘‘(3) The report described in paragraph (2) indicates that
the chemical characteristics of such coil or heat number conform
to those required by the standards and specifications to which
the manufacturer represents such lot has been manufactured.
‘‘(4) The manufacturer demonstrates that such lot has been
fabricated from the coil or heat number of metal to which
the report described in paragraphs (2) and (3) relates.
In prescribing the form of report required by subsection (c), the
Secretary shall provide for an alternative to the statement required
by subsection (c)(4), insofar as such statement pertains to chemical
characteristics, for cases in which a manufacturer elects to use
the procedure permitted by this subsection.’’.
(e) SECTION 6 AMENDMENT.—Section 6(a)(1) of the Fastener
Quality Act (15 U.S.C. 5405(a)(1)) is amended by striking ‘‘Within
180 days after the date of enactment of this Act, the’’ and inserting
in lieu thereof ‘‘The’’.
(f) SECTION 7 AMENDMENTS.—Section 7 of the Fastener Quality
Act (15 U.S.C. 5406) is amended—
(1) by amending subsection (a) to read as follows:
‘‘(a) DOMESTICALLY PRODUCED FASTENERS.—It shall be unlawful
for a manufacturer to sell any shipment of fasteners covered by
this Act which are manufactured in the United States unless the
fasteners—
‘‘(1) have been manufactured according to the requirements
of the applicable standards and specifications and have been
inspected and tested by a laboratory accredited in accordance
with the procedures and conditions specified by the Secretary
under section 6; and
‘‘(2) an original laboratory testing report described in sec-
tion 5(c) and a manufacturer’s certificate of conformance are
on file with the manufacturer, or under such custody as may
be prescribed by the Secretary, and available for inspection.’’;
(2) in subsection (c)(2) by inserting ‘‘to the same’’ after
‘‘in the same manner and’’;
(3) in subsection (d)(1) by striking ‘‘certificate’’ and inserting
in lieu thereof ‘‘test report’’; and
(4) by striking subsections (e), (f), and (g) and inserting
in lieu thereof the following:
‘‘(e) COMMINGLING.—It shall be unlawful for any manufacturer,
importer, or private label distributor to commingle like fasteners
from different lots in the same container, except that such manufac-
turer, importer, or private label distributor may commingle like
fasteners of the same type, grade, and dimension from not more
than two tested and certified lots in the same container during
repackaging and plating operations. Any container which contains
H. R. 2196—8
fasteners from two lots shall be conspicuously marked with the
lot identification numbers of both lots.
‘‘(f) SUBSEQUENT PURCHASER.—If a person who purchases fas-
teners for any purpose so requests either prior to the sale or
at the time of sale, the seller shall conspicuously mark the container
of the fasteners with the lot number from which such fasteners
were taken.’’.
(g) SECTION 9 AMENDMENT.—Section 9 of the Fastener Quality
Act (15 U.S.C. 5408) is amended by adding at the end the following
new subsection:
‘‘(d) ENFORCEMENT.—The Secretary may designate officers or
employees of the Department of Commerce to conduct investigations
pursuant to this Act. In conducting such investigations, those offi-
cers or employees may, to the extent necessary or appropriate
to the enforcement of this Act, exercise such authorities as are
conferred upon them by other laws of the United States, subject
to policies and procedures approved by the Attorney General.’’.
(h) SECTION 10 AMENDMENTS.—Section 10 of the Fastener Qual-
ity Act (15 U.S.C. 5409) is amended—
(1) in subsections (a) and (b), by striking ‘‘10 years’’ and
inserting in lieu thereof ‘‘5 years’’; and
(2) in subsection (b), by striking ‘‘any subsequent’’ and
inserting in lieu thereof ‘‘the subsequent’’.
(i) SECTION 13 AMENDMENT.—Section 13 of the Fastener Quality
Act (15 U.S.C. 5412) is amended by striking ‘‘within 180 days
after the date of enactment of this Act’’.
(j) SECTION 14 REPEAL.—Section 14 of the Fastener Quality
Act (15 U.S.C. 5413) is repealed.
SEC. 12. STANDARDS CONFORMITY.
(a) USE OF STANDARDS.—Section 2(b) of the National Institute
of Standards and Technology Act (15 U.S.C. 272(b)) is amended—
(1) in paragraph (2), by striking ‘‘, including comparing
standards’’ and all that follows through ‘‘Federal Government’’;
(2) by redesignating paragraphs (3) through (11) as para-
graphs (4) through (12), respectively; and
(3) by inserting after paragraph (2) the following new para-
graph:
‘‘(3) to compare standards used in scientific investigations,
engineering, manufacturing, commerce, industry, and edu-
cational institutions with the standards adopted or recognized
by the Federal Government and to coordinate the use by Fed-
eral agencies of private sector standards, emphasizing where
possible the use of standards developed by private, consensus
organizations;’’.
(b) CONFORMITY ASSESSMENT ACTIVITIES.—Section 2(b) of the
National Institute of Standards and Technology Act (15 U.S.C.
272(b)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (11), as
so redesignated by subsection (a)(2) of this section;
(2) by striking the period at the end of paragraph (12),
as so redesignated by subsection (a)(2) of this section, and
inserting in lieu thereof ‘‘; and’’; and
(3) by adding at the end the following new paragraph:
‘‘(13) to coordinate Federal, State, and local technical stand-
ards activities and conformity assessment activities, with pri-
vate sector technical standards activities and conformity assess-
H. R. 2196—9
ment activities, with the goal of eliminating unnecessary
duplication and complexity in the development and promulga-
tion of conformity assessment requirements and measures.’’.
(c) TRANSMITTAL
OF
PLAN
TO
CONGRESS.—The National
Institute of Standards and Technology shall, within 90 days after
the date of enactment of this Act, transmit to the Congress a
plan for implementing the amendments made by this section.
(d) UTILIZATION OF CONSENSUS TECHNICAL STANDARDS BY FED-
ERAL AGENCIES; REPORTS.—
(1) IN GENERAL.—Except as provided in paragraph (3) of
this subsection, all Federal agencies and departments shall
use technical standards that are developed or adopted by vol-
untary consensus standards bodies, using such technical stand-
ards as a means to carry out policy objectives or activities
determined by the agencies and departments.
(2) CONSULTATION; PARTICIPATION.—In carrying out para-
graph (1) of this subsection, Federal agencies and departments
shall consult with voluntary, private sector, consensus stand-
ards bodies and shall, when such participation is in the public
interest and is compatible with agency and departmental mis-
sions, authorities, priorities, and budget resources, participate
with such bodies in the development of technical standards.
(3) EXCEPTION.—If compliance with paragraph (1) of this
subsection is inconsistent with applicable law or otherwise
impractical, a Federal agency or department may elect to use
technical standards that are not developed or adopted by vol-
untary consensus standards bodies if the head of each such
agency or department transmits to the Office of Management
and Budget an explanation of the reasons for using such stand-
ards. Each year, beginning with fiscal year 1997, the Office
of Management and Budget shall transmit to Congress and
its committees a report summarizing all explanations received
in the preceding year under this paragraph.
(4) DEFINITION OF TECHNICAL STANDARDS.—As used in this
subsection, the term ‘‘technical standards’’ means performance-
based or design-specific technical specifications and related
management systems practices.
SEC. 13. SENSE OF CONGRESS.
It is the sense of the Congress that the Malcolm Baldrige
National Quality Award program offers substantial benefits to
H. R. 2196—10
United States industry, and that all funds appropriated for such
program should be spent in support of the goals of the program.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.