consortia to industry as a whole in carrying out this sec-
tion. The results of such study shall be submitted to the
Congress within 6 months after the date of the enactment
of this Act. Such report shall include criteria and proce-
dures for the evaluation by the Director of the progress
of consortia funded under this section.
(g) TERMINATION.—The Secretary shall establish
criteria and procedures for terminating Federal funding
of a consortium under this section if the Secretary deter-
mines that such consortium is not making acceptable
progress toward achieving its goals. No consortium shall
receive funding under this section for more than 7 years.
(h) DEFINITION.—For purposes of this section, the
term ‘‘large-scale research and development consortia’’
means a joint venture described in section 28(b)(1) of the
National Institute of Standards and Technology Act (15
U.S.C. 278n(b)(1)).
SEC. 323. TECHNICAL AMENDMENTS.
Section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n) is amended—
(1) by adding at the end the following new sub-
section:
‘‘(k) Notwithstanding subsections (b)(1)(B)(ii) and
(d)(3), the Director may grant an extension of not to ex-
ceed 6 months beyond the deadlines established under
those subsections for joint venture and single applicant
awardees to expend Federal funds to complete their
projects, if such extension may be granted with no addi-
tional cost to the Federal Government.’’;
(2) in subsection (b)(2), by inserting ‘‘, and
with independent research organizations’’ after ‘‘es-
pecially small businesses’’; and
(3) in subsection (j)—
(A) by redesignating paragraphs (1) and
(2) as paragraphs (2) and (3), respectively; and
(B) by inserting before paragraph (2), as
so redesignated, the following new paragraph:
‘‘(1) the term ‘independent research organiza-
tions’ means nonprofit organizations organized pri-
marily for the purpose of conducting or managing
research activities;’’.
SEC. 324. COUNTRY QUALIFICATION NOTICE.
Section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n) is amended by adding
at the end thereof the following new subsection:
‘‘(l) The Secretary shall provide prospective appli-
cants for assistance under this section with guidance as
to their eligibility under subsection (d)(9)(B)(ii). No such
applicant shall be required to provide evidence that a
country is a country described in such subsection
(d)(9)(B)(ii).’’.
SEC. 325. RECOUPMENT.
Section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n) is amended by adding
the following new subsection:
‘‘(l)(1) Not later than 180 days after the date of en-
actment of this subsection, the Secretary shall establish
procedures and criteria for recoupment in connection with
any project, for which a grant, contract, or cooperative
agreement is made under this section, which has led to
the development of a product or process which is marketed
or used.
‘‘(2)(A) Except as provided in subparagraph (B),
such recoupment shall be required as a condition for
award and be proportional to the Federal share of the
costs of such project, and shall be derived from the pro-
ceeds of royalties or licensing fees received in connection
with such product or process.
‘‘(B) In the case where a product or process is used
by the recipient of the financial assistance under this sec-
tion for the production and sale of its own products or
processes, the recoupment shall consist of a payment
equivalent to the payment which would be made under
subparagraph (A).
‘‘(3) The Secretary may at any time waive or defer
all or some of the recoupment requirements of this sub-
section as necessary, depending on—
‘‘(A) the commercial competitiveness of the en-
tity or entities developing or using the product or
process;
‘‘(B) the profitability of the project; and
‘‘(C) the commercial viability of the product or
process utilized.’’.
Subtitle C—Civilian Technology
Loan Program
SEC. 331. LOAN AND LOAN GUARANTEE AUTHORITY.
To the extent provided in appropriation Acts, the
Secretary, acting through the Under Secretary, may make,
or enter into agreements to make, loans and loan guaran-
tees, either directly or in cooperation with other lenders,
to small and medium-sized qualified business concerns in
accordance with this subtitle.
SEC. 332. OPERATING PLAN AND EFFECTIVE DATE.
(a) OPERATING
PLAN.—The Secretary, acting
through the Under Secretary, shall prepare (in consulta-
tion with the Advisory Committee established under sec-
tion 344, other appropriate executive agencies, the States,
United States companies, the financial community, and
other appropriate parties) and submit to the Congress on
or before November 1, 1993, an operating plan to carry
out this subtitle. In preparing such plan, the Secretary
shall consider and evaluate alternative approaches to
achieving the purposes of this subtitle and shall develop
recommendations, as appropriate, to fulfill the purposes
of this subtitle in the most effective and efficient manner
achievable. Such evaluations and recommendations shall
be included in the plan submitted under this subsection.
(b) EFFECTIVE DATE.—Except as provided in sub-
section (a), the provisions of this subtitle shall take effect
on October 1, 1994.
SEC. 333. TERMS AND CONDITIONS.
Loans and loan guarantees made under section 331
shall be in such form and manner and under such terms
and conditions as the Under Secretary may prescribe by
regulation, and shall be subject to the following terms and
conditions:
(1) Loans awarded or guaranteed shall be for
sound financing of research, development, dem-
onstration, or utilization of critical technologies or
advanced technologies.
(2) Loans shall only be awarded or guaranteed
if the Under Secretary finds that—
(A) sufficient collateral, which may include
both tangible and intangible assets, is pledged;
or
(B) the borrower is sufficiently financially
sound,
to reasonably ensure repayment.
(3) Loans awarded or guaranteed may not ex-
ceed 50 percent of total eligible project costs. For
purposes of this section, the term ‘‘eligible project
costs’’ shall be defined by the Under Secretary by
regulation.
(4) The total principal amount of outstanding
loans awarded or guaranteed to a single borrower
may not exceed $2,000,000 at any time.
(5) Loans awarded or guaranteed shall be sen-
ior to any other debt obligations of the borrower, ex-
cept to the extent that the Under Secretary consid-
ers necessary to accommodate the borrower’s ability
to raise sufficient debt or equity capital from non-
Federal sources to pay the balance of eligible project
costs that are not covered by such loans.
(6) Interest on a loan, or portion of a loan,
awarded or guaranteed by the Federal Government
under this subtitle shall be at a rate determined by
the Secretary of the Treasury, at the time such loan
is made, to equal the then current average market
yield on outstanding debt obligations of the United
States with remaining periods to maturity com-
parable to the maturity of such loan, plus an addi-
tional charge of up to 1 percent applied by the
Under Secretary to cover expected defaults and rea-
sonable administrative costs of carrying out this sub-
title. For purposes of this section, the term ‘‘de-
fault’’ shall be defined by the Under Secretary by
regulation.
(7) Except as provided in paragraph (8), the
maturity of loans awarded or guaranteed under this
subtitle may not be less than 2 years or greater
than—
(A) 10 years; or
(B) the useful life of property, plant,
equipment, or other assets, as determined by
the Secretary of the Treasury, which have been
pledged as collateral for such loan,
whichever is greater.
(8) The Under Secretary may extend the matu-
rity of or renew a loan or extend the guarantee of
a loan for additional periods, not to exceed 5 years,
only if such extension or renewal will aid in the or-
derly liquidation of such loan.
(9) Payment of interest on direct loans made by
the Federal Government under this subtitle may be
deferred by the borrower, upon approval by the
Under Secretary, only to the extent that the bor-
rower has established to the satisfaction of the
Under Secretary that the borrower has not realized
sufficient earnings and returns of capital to make
such payment without incurring undue financial
hardship, and that there is a reasonable prospect
that such loan and interest thereon will be repaid.
(10) The Under Secretary may guarantee pay-
ment of 100 percent of principal and interest on a
loan made under section 331.
(11) The Under Secretary may establish,
charge, and regulate fees to cover loan origination
and servicing costs that are reasonable and nec-
essary.
SEC. 334. TECHNICAL ASSISTANCE FOR LENDERS AND BOR-
ROWERS.
The Secretary, acting through the Under Secretary,
shall, upon request, provide technical assistance and serv-
ices, as appropriate and needed, to lenders and borrowers
under this subtitle, and shall ensure that such lenders and
borrowers have ready access to appropriate assistance
available under title III of the Stevenson-Wydler Tech-
nology Innovation Act of 1980, or under any other Act,
in order to aid such lenders and borrowers in achieving
the purposes described in section 333(1). The Secretary
may charge fees for technical assistance and services pro-
vided under this section in amounts sufficient to cover the
reasonable cost of such assistance and services. The Sec-
retary may waive such fees on a case-by-case basis. Fees
paid to the United States under this section shall be de-
posited in an account established by the Under Secretary
and shall be available solely for carrying out this subtitle,
to the extent provided in advance in appropriations Acts.
SEC. 335. OUTREACH TO ECONOMICALLY DEPRESSED
AREAS.
The Secretary, acting through the Under Secretary,
shall seek to ensure that qualified business concerns lo-
cated in areas determined by the Secretary to have a de-
pressed economy, or a significant concentration of defense-
related industries, or chronically high unemployment, are
notified of the availability of financial assistance through
the program established under this subtitle and, to the ex-
tent practicable, to encourage and facilitate the participa-
tion of such qualified business concerns in such program.
SEC. 336. SOCIALLY AND ECONOMICALLY DISADVANTAGED
INDIVIDUALS.
The Secretary shall, to the fullest extent possible, en-
sure that at least 10 percent of amounts loaned under this
subtitle shall be made available to qualified business con-
cerns owned or controlled by socially and economically dis-
advantaged individuals (within the meaning of section 8(a)
(5) and (6) of the Small Business Act, and including
women). Nothing in this section shall permit or require
the use of quotas or a requirement that has the effect of
a quota in determining eligibility for loans made available
under this subtitle. Nothing in this section shall be consid-
ered to extend eligibility to individuals on the basis of sex-
ual orientation.
SEC. 337. DEFINITIONS.
For purposes of this subtitle, the terms ‘‘advanced
technologies’’, ‘‘critical technologies’’, and ‘‘qualified busi-
ness concern’’ have the meaning given such terms in sec-
tion 342 of this Act.
Subtitle D—Civilian Technology
Development Program
SEC. 341. SHORT TITLE.
This subtitle may be cited as the ‘‘Civilian Tech-
nology Development Act of 1993’’.
SEC. 342. DEFINITIONS.
For purposes of this subtitle—
(1) the term ‘‘advanced technologies’’ means
technologies eligible for assistance under the Ad-
vanced Technology Program established under sec-
tion 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n);
(2) the term ‘‘articles’’ means articles of incor-
poration for an incorporated body, and the func-
tional equivalent, or other similar documents speci-
fied by the Under Secretary, for other business enti-
ties;
(3) the term ‘‘critical technologies’’ means tech-
nologies identified as critical technologies pursuant
to section 603(d) of the National Science and Tech-
nology Policy, Organization, and Priorities Act of
1976 (42 U.S.C. 6683(d));
(4) the term ‘‘Department’’ means the Depart-
ment of Commerce;
(5) the term ‘‘executive agency’’ has the mean-
ing given such term in section 105 of title 5, United
States Code;
(6) the term ‘‘license’’ means a license issued
by the Under Secretary under section 345;
(7) the term ‘‘licensee’’ means a company li-
censed under section 345;
(8) the term ‘‘preferred securities’’ means pre-
ferred stock or a preferred limited partnership inter-
est or other similar security, as defined by the
Under Secretary by regulation;
(9) the term ‘‘private equity capital’’ means the
paid-in capital and paid-in surplus, on hand or le-
gally committed to be provided, of a licensee orga-
nized as a corporation, or the partnership capital, on
hand or legally committed to be provided, of a li-
censee organized as an unincorporated partnership,
but does not include any funds—
(A) borrowed by the licensee from any
source;
(B) obtained from the sale of preferred se-
curities; or
(C) derived directly or indirectly from any
Federal source;
(10) the term ‘‘qualified business concern’’
means a United States company described in section
28(d)(9)(B) of the National Institute Standards and
Technology Act (15 U.S.C. 278n(d)(9)(B)), if—
(A) the business of such company includes
the pursuit, under the Small Business Innova-
tion Research (SBIR) program, of applications