SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advanced Manufacturing Fellowship 
Act of 1998''.

SEC. 2. ESTABLISHMENT OF ADVANCED MANUFACTURING FELLOWSHIP PROGRAM.

      Title IX of the Higher Education Act of 1965 is amended by adding 
after part G (20 U.S.C. 1134u et seq.) the following new part:

          ``PART H--ADVANCED MANUFACTURING FELLOWSHIP PROGRAM

``SEC. 981. PROGRAM AUTHORIZED.

    ``(a) Contract Authorized.--From the funds appropriated to carry 
out this part, the Secretary, by contract, shall establish an advanced 
manufacturing fellowship program in accordance with the requirements of 
this part. In carrying out such contract, the Secretary shall establish 
a competition to select a manufacturing association to establish such 
program,
    ``(b) Additional Contract Requirements.--The contract required by 
subsection (a) shall contain such provisions as are necessary to ensure 
that the advanced manufacturing fellowship program is conducted in 
accordance with the requirements of this part, including--
            ``(1) provisions to ensure that any small business 
        manufacturing enterprise that obtains an advanced manufacturing 
        fellowship program will provide 80 percent of the cost of the 
        salary and related benefits of the fellowship recipient; and
            ``(2) provisions to require such enterprises to submit, 
        after each year of participation in the program, an evaluation 
        of the value and benefits obtained from participation in the 
        program.

``SEC. 982. PROGRAM OPERATIONS.

    ``(a) Fellowship Awards.--The advanced manufacturing fellowship 
program shall provide fellowships to eligible individuals to cover 20 
percent of the costs of salary and related benefits, not to exceed the 
salary and related benefits available to similar individuals in similar 
employment, for fellowship recipients for one year of employment with a 
small business manufacturing enterprise.
    ``(b) Selection Procedure.--
            ``(1) Advertising fellowship.--The contractor shall take 
        such steps as may be necessary to advertise the availability of 
        fellowships under this part.
            ``(2) Enterprise Application.--Any small business 
        manufacturing enterprise that desires to obtain an advanced 
        manufacturing fellowship program for an eligible individual 
        shall file an application with the contractor, containing or 
        accompanied by such information as the contractor may require.
            ``(3) Competitive selection.--The contractor shall award 
        advanced manufacturing fellowships on the basis of a 
        competitive review of the applications received in accordance 
        with paragraph (2). In conducting such review, the contractor 
        shall use the following criteria (and such other criteria as 
        may be established by the contractor consistent with the 
        contract under section 981):
                    ``(A) the academic record of the fellowship 
                applicant;
                    ``(B) the recommendations submitted in support of 
                the applicant; and
                    ``(C) evidence indicating the nature of the 
                contribution the applicant will make to the 
                manufacturing enterprise.
            ``(4) Geographic limitation.--Not more than 20 advanced 
        manufacturing fellowships shall be awarded for employment in 
        any single State.
            ``(5) Fellowship awards.--The contractor shall provide for 
        an appropriate public ceremony or ceremonies for, or other 
        means of publicizing, the announcement of fellowship awards.
    ``(c) Eligibility.--
            ``(1) Eligible individuals.--An individual shall be 
        eligible for an advanced manufacturing fellowship if--
                    ``(A) such individual has received a masters or 
                doctorate degree within the 5 years preceding the award 
                in a science or engineering field of study;
                    ``(B) such individual is a citizen of the United 
                States; and
                    ``(C) such individual is or will be employed by a 
                small business manufacturing enterprise.
            ``(2) Small business manufacturing enterprise.--A business 
        corporation, partnership, or other business organization shall 
        be an eligible small business manufacturing enterprise for 
        purposes of subsection (b)(2) if such corporation, partnership, 
        or organization--
                    ``(A) has not more than 1,000 employees; and
                    ``(B) is engaged in the manufacture of a product, 
                or in the active development of a product that the 
                enterprise will manufacture.

``SEC. 983. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$14,000,000 for fiscal year 1999 and such sums as may be necessary for 
each of the four succeeding fiscal years.''.
Output: Advanced Manufacturing Fellowship Act of 1998 - Amends the Higher Education Act of 1965 to direct the Secretary of Education, by competitively selected contract, to establish an Advanced Manufacturing Fellowship program. 
Requires any small business manufacturing enterprise that obtains an advanced manufacturing fellowship program to:  (1) provide 80 percent of the cost of the salary and related benefits of the fellowship recipient; and (2) submit a yearly evaluation of the value and benefits obtained from program participation. 
Requires fellowships to cover 20 percent of the costs of salary and related benefits of recipients, not to exceed the salary and related benefits available to similar individuals in similar employment, for one year of employment with a small business manufacturing enterprise. 
Prescribes a competitive procedure for selection of fellowship recipients. 
Limits to 20 the maximum number of such fellowships which may be awarded for employment in any single State. 
Directs the contractor to provide for an appropriate public ceremony or ceremonies for, or other means of publicizing, the announcement of fellowship awards. 
Makes individuals eligible for such fellowships if they are U.S. citizens who:  (1) have received a masters or doctorate degree within the five years preceding the award in a science or engineering field of study; and (2) are or will be employed by a small business manufacturing enterprise.  Makes an enterprise eligible if it:  (1) has not more than 1,000 employees; and (2) is engaged in the manufacture of a product, or in the active development of a product that the enterprise will manufacture. 
Authorizes appropriations.