tive curricula, courses, and materials for use by institu-
tions of higher education for instruction in total quality
management and related management practices, in
order to help improve the productivity of United States
companies.
TITLE III—CRITICAL
TECHNOLOGIES
Subtitle A—Benchmarking Science
and Technology
SEC. 301. BENCHMARKING UNITED STATES SCIENCE AND
TECHNOLOGY AGAINST FOREIGN CAPABILI-
TIES.
The Stevenson-Wydler Technology Innovation Act of
1980, as amended by this Act, is further amended by add-
ing at the end the following new title:
‘‘TITLE IV—BENCHMARKING
SCIENCE AND TECHNOLOGY
‘‘SEC. 401. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—As other countries have gained
strength in new technologies and as centers of technical
excellence have developed around the world, it has become
increasingly important for United States companies and
research organizations to understand their scientific and
technological capabilities relative to those of other global
competitors.
‘‘(b) PURPOSES.—The purposes of this title are to
conduct and coordinate the collection, evaluation, and dis-
semination, to United States companies, State and local
governments, and nonprofit organizations, of information
on foreign science and technology, specifically information
assessing foreign capabilities relative to comparable Unit-
ed States capabilities.
‘‘SEC. 402. PROGRAM RESPONSIBILITIES.
‘‘(a) DEPARTMENT
OF COMMERCE.—The Depart-
ment of Commerce shall be the lead agency of the Federal
Government in making available information for assessing
the comparative strength of United States scientific and
technological capabilities. The Secretary, acting through
the Under Secretary, shall—
‘‘(1) collect within the Federal Government and
disseminate to United States companies, State and
local governments, and nonprofit organizations infor-
mation regarding foreign process and product re-
search and technologies of importance to United
States companies and the Federal Government, and
regarding related technology assessment activities al-
ready underway in the Federal Government;
‘‘(2) provide such information and analyses in
electronic form, and ensure, consistent with con-
fidentiality and security considerations, that they
will be available through the clearinghouse to the
outreach network created under section 303 of this
Act;
‘‘(3) work, in coordination with the Federal Co-
ordinating Council for Science, Engineering, and
Technology, as appropriate, to streamline Federal
Government procedures for collecting, evaluating,
and disseminating information analyzing foreign sci-
entific and technological information; and
‘‘(4) conduct appropriate planning for more
comprehensive collection, evaluation, dissemination,
and application of foreign science and technology in-
formation.
‘‘(b) OTHER AGENCIES.—All executive departments
and agencies shall assist the Secretary in carrying out this
title.
‘‘(c) ADDITIONAL
AUTHORITIES.—The Secretary,
acting through the Under Secretary, is authorized to—
‘‘(1) arrange for access to information collected
and developed under this title, in electronic form or
otherwise, by authorized and interested parties, in-
cluding charging and retaining fees for expenditure,
subject to appropriations;
‘‘(2) provide for the collection of additional in-
formation to fulfill the purposes of this title;
‘‘(3) provide for analysis of foreign research
and development activities and technological capa-
bilities, particularly in those areas where the United
States is considered to be at par or lagging foreign
capabilities or where foreign capabilities are pro-
jected to overtake those of the United States;
‘‘(4) enter into joint ventures authorized under
section 212(a)(1)(A) of Public Law 100–519 (15
U.S.C. 3704b(a)(1)(a)) in carrying out this title;
‘‘(5) consult with users of such information, as
appropriate, on the usefulness of available foreign
scientific and technological information and on the
need for additional information and assessment ac-
tivities and consult with other affected agencies of
the Federal Government to promote consistent and
useful collection, assessment, and analysis of foreign
technological information; and
‘‘(6) establish and administer the fellowship
program described in subsection (d).
‘‘(d) FELLOWSHIP PROGRAM.—(1) The Secretary,
acting through the Under Secretary, shall establish and
administer a fellowship program to support Technology
Fellows to assist the Under Secretary in carrying out ac-
tivities under this title relating to those countries that are
major competitors of the United States in critical tech-
nologies, and to identify opportunities for technology
transfer to the United States or technological collabora-
tion for United States industries.
‘‘(2) Technology Fellows shall—
‘‘(A) regularly report to the Department of
Commerce on work planned, in progress, and accom-
plished; and
‘‘(B) provide support to the Department of
Commerce as requested by that Department.
‘‘(3) Fellowships awarded under the program estab-
lished under this subsection shall—
‘‘(A) be awarded for a period of 2 years;
‘‘(B) be reasonable and appropriate; and
‘‘(C) include provisions for living and office ar-
rangements in the host country.
‘‘(4) Only individuals who—
‘‘(A) have at least a bachelors degree in engi-
neering or science; and
‘‘(B) have at least 5 years of work experience
in manufacturing or technology development,
shall be eligible for a fellowship under this program.’’.
Subtitle B—Advanced Technology
Program
SEC. 321. DEVELOPMENT OF PROGRAM PLAN.
The Secretary, acting through the Under Secretary
and the Director, shall, within 6 months after the date
of enactment of this Act, submit to the Congress a plan
for the expansion of the Advanced Technology Program
established under section 28 of the National Institute of
Standards and Technology Act (15 U.S.C. 278n), with
specific consideration given to—
(1) closer coordination and cooperation with the
Advanced Research Projects Agency and other Fed-
eral research and development agencies, including
joint funding of large scale consortia, as appropriate;
(2) broadening of the scope of the program to
include and focus on as many critical technologies
identified pursuant to section 603(d) of the National
Science and Technology Policy, Organization, and
Priorities Act of 1976 (42 U.S.C. 6683(d)) as is ap-
propriate; and
(3) changes that may be needed when annual
funds available for awards and cooperative agree-
ments 
under 
the 
Program 
reach 
levels 
of
$200,000,000 and $500,000,000.
SEC. 322. LARGE SCALE RESEARCH AND DEVELOPMENT
CONSORTIA.
(a) ESTABLISHMENT OF PROGRAM.—The Secretary,
acting through the Director, may establish a program for
the support of large-scale research and development
consortia.
(b) 
SELECTION
PROCEDURES
AND
REQUIRE-
MENTS.—
(1) GENERAL
RULE.—Except as provided in
paragraph (2), the selection and making of awards
to large-scale research and development consortia
under this section shall be carried out in accordance
with procedures and requirements applicable to joint
ventures described in section 28(b)(1) of the Na-
tional Institute of Standards and Technology Act
(15 U.S.C. 278n(b)(1)).
(2) 
EXCEPTION.—Notwithstanding 
section
28(b)(1)(B)(ii) of the National Institute of Stand-
ards 
and 
Technology 
Act 
(15 
U.S.C.
278n(b)(1)(B)(ii)), for purposes of awards made
under this section, a minority share of the cost of
large-scale research and development consortia may
be provided by the Federal Government for up to 7
years.
(c) PROJECT SELECTION.—Preference shall be given
for selection under this section to large-scale research and
development consortia that would not be undertaken by
the private sector without a Federal investment of
$30,000,000 or more per year.
(d) SELECTION CRITERIA.—In selecting large-scale
research and development consortia under this section, the
Secretary, acting through the Director, shall give priority
to consortia that best achieve the following goals:
(1) Significant contribution to broad economic
growth.
(2) Significant contribution to the national
quality of life.
(3) Significant contribution to environmental
sustainability.
(4) Promotion of private sector partnership
with Federal research and development activities.
(5) Substantial improvement of the inter-
national competitiveness of United States companies.
(6) Involvement of several competitor firms in
the development of the key consortia technologies.
(7) Strengthening of the linkages between do-
mestic suppliers, systems developers, and end-users.
(8) Participation by domestic end-users from
several industrial sectors.
(9) 
Promotion 
of 
the 
diffusion 
of
nonproprietary information to United States compa-
nies through strong links with organizations such as
trade and professional groups.
(e) INDEPENDENT TECHNICAL REVIEW.—The Sec-
retary, through the Director, shall provide for technical
review at least once every three years of large-scale re-
search and development consortia receiving support under
this section, by the National Institute of Standards and
Technology, other national laboratories, the Department
of Commerce Technology Advisory Board established
under section 401 of this Act, or independent research or-
ganizations that are not a participant in the large-scale
research and development consortium being reviewed.
Such review shall be for the purpose of determining
progress toward the objectives for which such large-scale
research and development consortium was formed, with
recommendations for improvement, funding adjustments,
or termination of Federal support. The Secretary, through
the Director, shall transmit to the Committee on Science,
Space, and Technology of the House of Representatives
and the Committee on Commerce, Science, and Transpor-
tation of the Senate an annual status report summarizing
significant accomplishments in achieving those objectives.
(f) STUDY.—The Secretary, through the Director,
shall undertake a study to determine the best way to maxi-
mize the benefit of large-scale research and development
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—
(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
described in section 9(e)(4)(C) of the Small
Business Act (15 U.S.C. 638(e)(4)(C));
(B) the principal business of such company
is the development or application of a critical
technology;
(C) such company is eligible for assistance
under the Advanced Technology Program
(ATP) established under section 28 of the Na-
tional Institute of Standards and Technology
Act (15 U.S.C. 278n); or
(D) such company is principally engaged in
the development or exploitation of inventions,
technological improvements, new processes, or
products not previously generally available
(within the meaning of section 851(e)(1) of the
Internal Revenue Code of 1986);
(11) the term ‘‘State’’ means several States, the
District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa,
and the Commonwealth of the Northern Mariana Is-
lands, and any other territory or possession of the
United States;
(12) the term ‘‘State sponsored licensee’’ means
a company licensed under section 345 in which a
State or instrumentality of a State has at least a 25
percent investment interest in the private equity cap-
ital of such licensee;
(13) the term ‘‘university sponsored licensee’’
means a company licensed under section 345 in
which a single university or consortium of univer-
sities has at least a 25 percent investment interest
in the private equity capital of such licensee; and
(14) the term ‘‘venture capital’’ means consid-
eration for such—
(A) common stock;
(B) preferred stock;
(C) debt with equity features which may
include equity warrants or rights to convert into
common stock and which provides for interest
payments contingent upon and limited to the
extent of earnings; or
(D) other financing,
as the Under Secretary determines to be substan-
tially similar to equity financing, issued by a quali-
fied business concern.
SEC. 343. ESTABLISHMENT AND PURPOSE.
(a) ESTABLISHMENT.—There is established within
the Technology Administration of the Department of Com-
merce a national program to stimulate and supplement the
availability of long-term investment capital for the forma-
tion, development, and growth of qualified business con-
cerns throughout the United States. The Secretary,
through the Under Secretary, shall, through such pro-
gram, provide for the selection, licensing, monitoring, and
financial and technical support of professionally managed
technology investment companies which in turn shall pro-
vide financial, management, and technical assistance to
qualified business concerns, with preference given to satis-
fying the seed and early-stage financing needs of such con-
cerns that are not being met by other sources on reason-
able terms.
(b) PURPOSES.—The purposes of this subtitle are—
(1) to contribute to United States economic
competitiveness, employment, and prosperity;
(2) to promote the advancement, maturation,
and application of critical and other advanced tech-
nologies;
(3) to supplement and stimulate long-term in-
vestment in qualified business concerns; and
(4) to encourage and facilitate the formation
and growth of professionally managed technology in-
vestment companies throughout the United States
that will give preference to satisfying the capital
needs of qualified business concerns, especially dur-
ing their early stages of development.
(c) RESPONSIBILITIES.—(1) In carrying out this sub-
title, the Secretary, acting through the Under Secretary,
and subject to the availability of appropriations, shall—
(A) consult with and, to the extent permitted by
law, utilize the capabilities of other executive agen-
cies, as appropriate, to ensure the efficient and ef-
fective implementation of this subtitle;
(B) explore, with other executive agencies, ways
to avoid duplication of effort by consolidating the
administration of the program established by this
subtitle 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) consult with the Secretary of Energy, the
Secretary of Defense, and the Administrator of the
National Aeronautics and Space Administration, on
all policy matters related to the Civilian Technology
Development Program that deal with development or
utilization of technologies developed by those agen-
cies;
(D) consult with State governments to ensure
that the existing programs run by or chartered by
State governments which seek to accomplish pur-
poses similar to those stated in subsection (b) are
encouraged and not undermined by the implementa-
tion of this subtitle; and
(E) explore with State governments ways in
which programs currently run by or chartered by
State governments which seek to accomplish pur-
poses similar to those stated in subsection (b) can
serve as models for the Secretary or be used to en-
sure the efficient and effective implementation of
this subtitle.
(2) To the extent permitted by law, other executive
agencies shall cooperate with the Under Secretary in car-
rying out this subtitle.
(d) 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 about 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