Text: H.R.5231 — 102nd Congress (1991-1992)All Information (Except Text)

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Union Calendar No. 483
102d CONGRESS
2d Session
H. R. 5231
[Report No. 102-841]
A BILL
To amend the Stevenson-Wydler Technology Innovation Act of 1980 to enhance
manufacturing technology development and transfer, to authorize appropriations
for the Technology Administration of the Department of Commerce, including
the National Institute of Standards and Technology, and for other purposes.
August 12, 1992
Reported with an amendment, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
HR 5231 RH2
Union Calendar No. 483
102d CONGRESS
2d Session
 H. R. 5231
[Report No. 102-841]
To amend the Stevenson-Wydler Technology Innovation Act of 1980 to enhance
manufacturing technology development and transfer, to authorize appropriations
for the Technology Administration of the Department of Commerce, including
the National Institute of Standards and Technology, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 21, 1992
Mr. VALENTINE (for himself, Mr. BROWN, Mr. GLICKMAN, Mr. MINETA,
Mr. TORRICELLI, Mr. THORNTON, Mr. ROEMER, Ms. HORN, Mr. BOUCHER, Mr. TANNER,
Mr. BACCHUS, Mr. SWETT, Mr. ENGEL, Mr. OLVER, Mrs. LLOYD, Mr. VOLKMER,
Mr. WOLPE, Mr. HALL of Texas, Mr. MCCURDY, Mr. STALLINGS, Mr. TRAFICANT,
Mr. NOWAK, Mr. PERKINS, Mr. MCMILLEN of Maryland, Mr. NAGLE, Mr. CRAMER,
and Mr. KOSTMAYER) introduced the following bill; which was referred to the
Committee on Science, Space, and Technology
July 22, 1992
Additional sponsors: Mr. BERMAN, Mr. BUSTAMANTE, Mr. DE LUGO, Mr. JEFFERSON,
Mr. MOLLOHAN, Mr. HUGHES, Mr. NEAL of Massachusetts, Mr. RINALDO, Mr. PASTOR,
Mr. TORRES, Mr. SABO, Ms. KAPTUR, Mr. ATKINS, Mr. LANCASTER, Mr. DICKS,
Mr. JOHNSON of South Dakota, and Mr. Kopetski
July 22, 1992
Reported with an amendment, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
July 31, 1992
Recommitted to the Committee on Science, Space, and Technology
August 12, 1992
Additional sponsor: Mr. Chapman
August 12, 1992
Reported with an amendment, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on May 21, 1992]
A BILL
To amend the Stevenson-Wydler Technology Innovation Act of 1980 to enhance
manufacturing technology development and transfer, to authorize appropriations
for the Technology Administration of the Department of Commerce, including
the National Institute of Standards and Technology, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
TITLE I--GENERAL PROVISIONS
SEC. 101. SHORT TITLE; TABLE OF CONTENTS.
  (a) SHORT TITLE- This Act may be cited as the `National Competitiveness
  Act of 1992'.
  (b) TABLE OF CONTENTS-
TITLE I--GENERAL PROVISIONS
Sec. 101. Short title; table of contents.
Sec. 102. Findings.
Sec. 103. Purposes.
Sec. 104. Goals.
TITLE II--MANUFACTURING
Sec. 201. Short title.
Sec. 202. Findings and purpose.
Sec. 203. Role of the Technology Administration in manufacturing.
Sec. 204. Miscellaneous and conforming amendments.
Sec. 205. Manufacturing Technology Centers.
Sec. 206. Engineering Research Centers.
TITLE III--CRITICAL TECHNOLOGIES
Subtitle A--Miscellaneous
Sec. 301. Findings.
Sec. 302. Annual report on negotiations potentially affecting Federal research
and development programs.
Subtitle B--Council on Technology and Competitiveness
Sec. 311. Council on Technology and Competitiveness.
Subtitle C--Advanced Technology Program
Sec. 321. Development of program plan.
Sec. 322. Funding of consortia.
Sec. 323. Technical amendment.
Sec. 324. Authorization of appropriations.
Subtitle D--Technology Development Loans
Sec. 331. Technology development loans.
Subtitle E--Critical Technologies Development
PART I--GENERAL PROVISIONS
Sec. 341. Short title.
Sec. 342. Findings and purposes.
Sec. 343. Definitions.
Sec. 344. General responsibilities.
Sec. 345. Advisory committee.
PART II--PROGRAM STRUCTURE AND OPERATION
Sec. 351. Organization and licensing.
Sec. 352. Capital requirements.
Sec. 353. Financing.
Sec. 354. Equity capital for qualified business concerns.
Sec. 355. Loans to qualified business concerns.
Sec. 356. Limitation on amount of assistance.
Sec. 357. Operation and regulation.
Sec. 358. Annual audit and report.
Sec. 359. Technical assistance for licensees and qualified business concerns.
PART III--ENFORCEMENT
Sec. 361. Revocation and suspension of licenses; cease and desist orders.
Sec. 362. Investigations and examinations.
Sec. 363. Injunctions and other orders.
Sec. 364. Conflicts of interest.
Sec. 365. Removal or suspension of directors and officers.
Sec. 366. Unlawful acts.
Sec. 367. Penalties and forfeitures.
Sec. 368. Jurisdiction and service of process.
Sec. 369. Antitrust savings clause.
PART IV--MISCELLANEOUS
Sec. 371. Issuance and guarantee of trust certificates.
Sec. 372. Authorization of appropriations.
TITLE IV--INTERNATIONAL STANDARDIZATION
Sec. 401. Findings.
Sec. 402. Standards pilot program.
Sec. 403. Report on global standards.
TITLE V--MISCELLANEOUS PROVISIONS
Sec. 501. Technology Administration.
Sec. 502. National Institute of Standards and Technology.
Sec. 503. Availability of appropriations.
Sec. 504. Use of domestic products.
Sec. 505. Malcolm Baldrige Award amendments.
Sec. 506. Definitions.
Sec. 507. Cooperative research and development agreements.
Sec. 508. Sense of the Congress.
TITLE VI--COMPETITIVENESS RESEARCH, DATA COLLECTION, AND EVALUATION
Sec. 601. Findings.
Sec. 602. Research.
Sec. 603. Data collection.
Sec. 604. Evaluation.
Sec. 605. Competitiveness Policy Council advice.
Sec. 606. Authorization of appropriations.
SEC. 102. FINDINGS.
  The Congress finds that--
  (1) the unprecedented competitive challenge the United States has faced
  during the past decade from foreign-based companies offering high-quality,
  low-priced products has contributed to a drop in real wages and standard
  of living;
  (2) as international competition has intensified in advanced technology
  research, development, and applications, the passive nature of United
  States civilian technology policy has hindered the ability of American
  companies to compete in certain high technology fields;
  (3) there is general agreement on which fields of technology are critical
  for economic competitiveness in the next century, but the United States
  Government lacks a comprehensive strategy for ensuring that the appropriate
  research, development, and applications activities and other reforms occur
  so these technologies are readily available to United States manufacturers
  for incorporation into products made in the United States;
  (4) strategic technology planning, the support of critical technology
  research, development, and application, and advancement of manufacturing
  technology development and deployment are appropriate Government roles;
  (5) the cost of and difficulty in obtaining venture capital are significant
  deterrents to the expansion of small high technology companies; and
  (6) standardization of weights and measures, including development and
  promotion of product and quality standards, has a significant role to play
  in competitiveness.
SEC. 103. PURPOSES.
  The purposes of this Act are to--
  (1) develop a nationwide network of sources of technological and other
  advice for manufacturers, particularly small and medium-sized firms,
  and to provide high quality, current information to that network;
  (2) encourage the development and rapid application of advanced manufacturing
  processes;
  (3) expand the scope and resources of the Advanced Technology Program of
  the National Institute of Standards and Technology;
  (4) stimulate and supplement the flow of capital to business concerns
  engaged in research, development, and manufacture of critical technologies;
  (5) establish mechanisms to ensure synergistic linkages between Federal,
  State, and local initiatives aimed at enhancing the competitiveness of
  United States products; and
  (6) enhance the core programs of the National Institute of Standards
  and Technology.
SEC. 104. GOALS.
  The goals of this Act are to--
  (1) improve the competitiveness of small and medium-sized manufacturers
  by improving access to the information and expertise required to compete
  throughout the world;
  (2) improve the United States position in technologies essential to
  economic growth and national welfare by promoting research, development,
  and timely utilization of those technologies;
  (3) utilize the State and local capabilities in industrial extension to
  improve the efficiency, quality, and strength of national programs to
  improve the competitiveness of United States products; and
  (4) expand the availability of low-cost patient capital to United States
  companies developing critical technologies.
TITLE II--MANUFACTURING
SEC. 201. SHORT TITLE.
  This title may be cited as the `Manufacturing Technology and Extension
  Act of 1992'.
SEC. 202. FINDINGS AND PURPOSE.
  (a) FINDINGS- Congress finds and declares the following:
  (1) United States manufacturers, especially small businesses, require the
  adoption and implementation of both modern and advanced manufacturing and
  process technologies to meet the challenge of foreign competition.
  (2) The development and deployment of modern and advanced manufacturing
  technologies are vital to the Nation's economic growth, standard of living,
  competitiveness in world markets, and national security.
  (3) New developments in flexible, computer-integrated manufacturing,
  electronic manufacturing communications networks, and other new technologies
  make possible dramatic improvements across all industrial sectors in
  productivity, quality, and the speed with which manufacturers can respond
  to changing market opportunities.
  (4) The Department of Commerce's Technology Administration can continue
  to play an important role in assisting United States industry to develop,
  test, and deploy modern and advanced manufacturing technologies.
  (b) PURPOSE- It is the purpose of Congress in this title to help ensure
  the continued leadership of the United States in manufacturing by enhancing
  the Department of Commerce's technology programs to--
  (1) provide, to the greatest extent possible, within 5 years after the date
  of enactment of this Act, all domestic manufacturers, especially small-
  and medium-sized companies, with access to Federal advice and assistance
  in the development, deployment, and improvement of modern manufacturing
  technology; and
  (2) encourage, facilitate, and promote the development and adoption of
  advanced manufacturing technologies by the private sector.
SEC. 203. ROLE OF THE TECHNOLOGY ADMINISTRATION IN MANUFACTURING.
  The Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et
  seq.) is amended by adding at the end the following new title:
`TITLE III--MANUFACTURING TECHNOLOGY
`SEC. 301. LEAD AGENCY.
  `(a) IN GENERAL- The Department of Commerce, in consultation with appropriate
  Federal agencies, shall serve as the lead civilian Federal agency to work
  with United States industry, State and local governments, and appropriate
  private organizations to encourage and facilitate the enhancement of
  manufacturing capabilities of United States industry.
  `(b) COMMERCE TECHNOLOGY ADVISORY BOARD-
  `(1) ESTABLISHMENT- There is established a Commerce Technology Advisory
  Board (in this section referred to as the `Advisory Board').
  `(2) COMPOSITION- The Advisory Board shall be composed of at least 17
  members, appointed by the Under Secretary of Commerce for technology (in this
  section referred to as the `Under Secretary') from among individuals who,
  because of their experience and accomplishments in technology development,
  business development, international trade, or finance are exceptionally
  qualified to analyze and formulate policy that would improve the global
  competitiveness of industries in the United States. The Under Secretary
  shall designate 1 member to serve as chairman. Membership of the Advisory
  Board shall be composed of--
  `(A) representatives of--
  `(i) small businesses;
  `(ii) transnational corporations;
  `(iii) universities and independent research institutes;
  `(iv) State and local government agencies involved in industrial extension;
  `(v) national laboratories;
  `(vi) industrial, worker, and professional organizations; and
  `(vii) financial organizations; and
  `(B) other individuals that possess important insight to issues of national
  competitiveness.
  `(3) DUTIES- The duties of the Advisory Board shall include--
  `(A) advising the Technology Administration regarding the development and
  implementation of policies that the Advisory Board considers essential to
  industrial productivity and technology growth and adoption, with priority
  given to policies that would benefit small businesses; and
  `(B) advising the Under Secretary in the planning, execution, and evaluation
  of programs under the authority of the Technology Administration, including
  the Manufacturing Technology Center Program and the Nationwide Network of
  Manufacturing Outreach Centers.
  `(4) MEETINGS- (A) The chairman shall call the first meeting of the Advisory
  Board not later than 90 days after the date of enactment of this section.
  `(B) The Advisory Board shall meet at least once every 6 months, and at
  the call of the Under Secretary.
  `(5) TRAVEL EXPENSES- Members of the Advisory Board, other than full-time
  employees of the United States, shall be allowed travel expenses in
  accordance with subchapter I of chapter 57 of title 5, United States Code,
  while engaged in the business of the Advisory Board.
  `(6) TERMINATION- Section 14 of the Federal Advisory Committee Act shall
  not apply to the Advisory Board.
`SEC. 302. NATIONWIDE NETWORK OF MANUFACTURING OUTREACH CENTERS.
  `(a) ESTABLISHMENT AND PURPOSE OF NETWORK- The Secretary, acting through
  the Under Secretary and the Director, shall establish, coordinate, and
  implement, in accordance with the plans prepared under subsections (b)
  and (e), a program to be known as the Nationwide Network of Manufacturing
  Outreach Centers (in this title referred to as the `Network') for the
  purpose of assisting United States manufacturers, especially small-
  and medium-sized firms, to expand and accelerate the use of modern
  manufacturing practices, and to accelerate the development and use of
  advanced manufacturing technology.
  `(b) EVALUATION AND PLAN FOR SUPPORT OF EXISTING CENTERS- Within 6 months
  after the date of enactment of this title, the Secretary, in consultation
  with the Under Secretary, the Director, and the Advisory Board, shall
  submit a report to Congress--
  `(1) describing how the Technology Administration will carry out
  its responsibilities under this title, including recommendations for
  reorganization if necessary;
  `(2) identifying the Federal, State, and local government agencies and
  other appropriate organizations, including centers established under
  section 25 of the National Institute of Standards and Technology Act,
  Federal, State, and local extension programs, small business development
  centers, professional societies, industrial associations, and programs
  of nonprofit organizations, universities, community colleges, technical
  colleges, and Federal laboratories, engaged in manufacturing or technology
  extension activities;
  `(3) evaluating the capabilities, shortcomings, and potential of
  organizations identified under paragraph (2), to enhance United States
  manufacturing capabilities;
  `(4) establishing a plan for Federal programs--
  `(A) linking organizations described in paragraph (2), the Technology
  Administration, and other appropriate Federal agencies;
  `(B) providing services and financial aid to those organizations to increase
  the effectiveness of their manufacturing outreach programs; and
  `(C) ensuring synergy among Federal, State, and local organizations involved
  in the Network;
  `(5) establishing procedures for the selection of organizations described
  in paragraph (2) as Manufacturing Outreach Centers;
  `(6) establishing criteria for providing Federal services and financial aid
  to Manufacturing Outreach Centers, including recommendations for cost sharing
  and mechanisms for basing continued support on Center performance; and
  `(7) evaluating the need for and the benefits of a National Conference of
  States on Industrial Extension, with representation from all the States,
  appropriate Federal agencies, business, and other interested parties, in
  establishing, coordinating, and implementing the policies and programs of
  the States and the Federal Government, including those established under
  this title, pertaining to industrial extension activities, and, if the
  Secretary determines that such a Conference is advisable, developing, in
  consultation with the States and other interested parties, a plan for the
  establishment, operation, funding, and evaluation of a National Conference
  of States on Industrial Extension that is similar in structure to the
  National Conference on Weights and Measures established by the National
  Institute of Standards and Technology under section 2 of the National
  Institute of Standards and Technology Act (15 U.S.C. 272).
In preparing such report, the Secretary shall, to the greatest extent
practicable, use existing reports and recommendations, including
recommendations for changes to and expansion of the centers established
under section 25 of the National Institute of Standards and Technology Act
(15 U.S.C. 278k) or to the State Technology Extension Programs established
under section 26 of such Act (15 U.S.C. 278l). Such report shall be prepared
in consultation with a cross section of industry representatives served
by and working with the organizations described in paragraph (2), and in
consultation and coordination with other Federal and State agencies involved
in technology extension activities.
  `(c) COMMUNICATIONS INFRASTRUCTURE- (1) In order to facilitate the
  operations of the Network, the Department of Commerce, after consultation
  with the Advisory Board, shall provide for a communications infrastructure
  consisting of comprehensive computer integrated systems--
  `(A) to facilitate interaction among Manufacturing Outreach Centers; and
  `(B) to provide for the collection and dissemination in electronic form,
  in a timely and accurate manner, of information appropriate to the purpose
  of the Network.
Such infrastructure shall be designed to enable the instantaneously interactive
exchange of information among the various organizations and Federal agencies
that are a part of, that support, or that benefit from the Network. Such
communications infrastructure shall, wherever practicable, make use of
existing computer networks.
  `(2) The Secretary shall, within one year after the date of the enactment
  of this title, develop and submit to the Congress a management plan for--
  `(A) the communications infrastructure described in paragraph (1), including
  user fees and appropriate electronic access for information suppliers and
  users; and
  `(B) the clearinghouse system developed under subsection (d).
  `(d) CLEARINGHOUSE- (1) The Secretary shall develop a clearinghouse system,
  using the National Technical Information Service and private sector
  information providers and carriers where appropriate, to--
  `(A) identify expertise and acquire information, appropriate to the
  purpose of the Network stated in subsection (a), from all available Federal
  sources, providing assistance where necessary in making such information
  electronically available and compatible with the Network;
  `(B) ensure ready access by United States manufacturers and other interested
  private sector parties to the most recent relevant available such information
  and expertise; and
  `(C) to the extent practicable, inform such manufacturers of the availability
  of such information.
  `(2) The clearinghouse shall include information available electronically
  on--
  `(A) activities of Manufacturing Outreach Centers and the users of the
  Network;
  `(B) domestic and international standards from the National Institute
  of Standards and Technology and private sector organizations and other
  export promotion information, including conformity assessment requirements
  and procedures;
  `(C) the Malcolm Baldrige Quality program, and quality principles and
  standards;
  `(D) federally funded technology development and transfer programs;
  `(E) responsibilities assigned to the Clearinghouse for State and Local
  Initiatives on Productivity, Technology, and Innovation under section 102
  of this Act;
  `(F) how to access data bases and services; and
  `(G) other subjects relevant to the ability of companies to manufacture
  and sell competitive products throughout the world.
  `(e) 5-YEAR PLAN- Within 1 year after the date of enactment of this title,
  the Secretary, in consultation with the Under Secretary, the Director,
  and the Advisory Board, shall prepare and submit to the Congress a 5-year
  plan for implementing and expanding the Network. Such plan shall identify
  appropriate methods for expanding the Network in a geographically balanced
  manner, including a merit-based process for the selection of additional
  Manufacturing Outreach Centers. In selecting Manufacturing Outreach Centers,
  and in awarding financial assistance to such Centers, the Under Secretary
  shall ensure that manufacturers using the Network are consulted as to the
  past performance of applicants. Such 5-year plan shall include a detailed
  implementation plan and cost estimates and shall take into consideration
  and build on the report submitted under subsection (b).
  `(f) PRINCIPLES- In carrying out this section, the Department of Commerce
  shall take into consideration the following principles:
  `(1) The Network shall be established and operated through cooperation
  and co-funding among Federal, State, and local governments, other public
  and private contributors, and end users.
  `(2) The Network shall utilize and leverage, to the extent practicable,
  existing organizations, data bases, electronic networks, facilities,
  and capabilities.
  `(3) Local or regional needs should determine the management structure
  and staffing of the Manufacturing Outreach Centers.
  `(4) Manufacturing Outreach Centers should have the capability to deliver
  outreach services directly to manufacturers, actively work with, rather than
  supplant, the private sector, and to the extent practicable, maximize the
  exposure of manufacturers to demonstrations of modern technologies in use.
  `(5) Manufacturing Outreach Centers shall focus, where possible, on the
  development and deployment of flexible manufacturing practices applicable
  to both defense and commercial applications.
  `(6) The Department of Commerce shall develop mechanisms for--
  `(A) soliciting the perspectives of manufacturers using the services of
  the Manufacturing Outreach Centers; and
  `(B) evaluating the effectiveness of the Manufacturing Outreach Centers.
  `(g) ANNUAL REPORT TO CONGRESS- The Secretary shall annually report to
  the Congress on--
  `(1) progress made in carrying out this section during the preceding
  fiscal year;
  `(2) changes proposed to the 5-year plan;
  `(3) performance in adhering to schedules; and
  `(4) any recommendations for legislative changes necessary to enhance
  the Network.
The report under this subsection submitted at the end of the fourth year
of operation of the Network shall include recommendations on whether to
terminate the Network or extend it for a specified period of time.
  `(h) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the Secretary for carrying out this section $120,000,000 for the period
  encompassing fiscal years 1994 and 1995.
`SEC. 303. ADVANCED MANUFACTURING SYSTEMS AND NETWORKING PROJECTS.
  `(a) PROGRAM DIRECTION- The Secretary, through the Under Secretary and
  the Director, shall establish a program entitled Advanced Manufacturing
  Systems and Networking Projects (in this title referred to as the `Advanced
  Manufacturing Program').
  `(b) PROGRAM GOAL- The goal of the Advanced Manufacturing Program is to
  create collaborative multiyear technology development programs involving
  United States industry and, as appropriate, other Federal agencies, the
  States, and other interested persons, in order to develop, refine, test, and
  transfer design and manufacturing technologies and associated applications,
  including advanced computer integration and electronic networks.
  `(c) PROGRAM COMPONENTS- The Advanced Manufacturing Program shall include--
  `(1) the advanced manufacturing research and development activities at
  the Institute; and
  `(2) one or more technology development testbeds within the United States,
  selected in accordance with procedures, including cost sharing, established
  under section 28 of the National Institute of Standards and Technology Act
  (15 U.S.C. 278n), whose purpose shall be to develop, refine, test, and
  transfer advanced manufacturing and networking technologies and associated
  applications through a direct manufacturing process.
  `(d) ACTIVITIES- The Advanced Manufacturing Program, under the coordination
  of the Secretary, through the Director, shall--
  `(1) test and, as appropriate, develop the equipment, computer software,
  and systems integration necessary for the successful operation within the
  United States of advanced design and manufacturing systems and associated
  electronic networks;
  `(2) establish at the Institute and the technology development testbed
  or testbeds--
  `(A) prototype advanced computer-integrated manufacturing systems; and
  `(B) prototype electronic networks linking manufacturing systems;
  `(3) assist industry to develop, and implement voluntary consensus standards
  relevant to advanced computer-integrated manufacturing operations, including
  standards for networks, electronic data interchange, and digital product
  data specifications;
  `(4) help to make high-performance computing and networking technologies
  an integral part of design and production processes where appropriate;
  `(5) conduct research to identify and overcome technical barriers to the
  successful and cost-effective operation of advanced manufacturing systems
  and networks;
  `(6) facilitate industry efforts to develop and test new applications for
  manufacturing systems and networks;
  `(7) involve, to the maximum extent practicable, both those United States
  companies which make manufacturing and computer equipment and those
  companies which buy the equipment, with particular emphasis on including
  a broad range of company personnel in the Advanced Manufacturing Program
  and on assisting small- and medium-sized manufacturers;
  `(8) identify training needs, as appropriate, for company managers,
  engineers, and employees in the operation and applications of advanced
  manufacturing technologies and networks, with a particular emphasis on
  training for production workers in the effective use of new technologies;
  `(9) work with private industry to develop standards for the use of advanced
  computer-based training systems, including multi-media and interactive
  learning technologies; and
  `(10) exchange information and personnel, as appropriate, between the
  technology development testbeds and the Network created under section 302.
  `(e) TESTBED AWARDS- (1) In selecting applicants to receive awards under
  subsection (c)(2) of this section, the Secretary shall give particular
  consideration to applicants that have existing computer expertise in the
  management of business, product, and process information such as digital data
  product and process technologies and customer-supplier information systems,
  and the ability to diffuse such expertise into industry, and that, in the
  case of joint research and development ventures, include both suppliers
  and users of advanced manufacturing equipment.
  `(2) An industry-led joint research and development venture applying for an
  award under subsection (c)(2) of this section may include one or more State
  research organizations, universities, independent research organizations,
  or Regional Centers for the Transfer of Manufacturing Technology (as created
  under section 25 of the National Institute of Standards and Technology Act).
  `(f) ADVICE AND ASSISTANCE- (1) Within 6 months after the date of enactment
  of this title, and before any request for proposals is issued, the Secretary
  shall hold one or more workshops to solicit advice from United States
  industry and from other Federal agencies, particularly the Department of
  Defense, regarding the specific missions and activities of the testbeds.
  `(2) The Secretary shall, to the greatest extent possible, coordinate
  activities under this section with activities of other Federal agencies and
  initiatives relating to Computer-Aided Acquisition and Logistics Support,
  electronic data interchange, flexible computer-integrated manufacturing,
  and enterprise integration.
  `(3) The Secretary may request and accept funds, facilities, equipment, or
  personnel from other Federal agencies in order to carry out responsibilities
  under this section.
  `(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the Secretary for carrying out this section $20,000,000 for the period
  encompassing fiscal years 1994 and 1995.
`SEC. 304. ROLE OF THE SECRETARY AND OTHER EXECUTIVE AGENCIES.
  `(a) SECRETARY- The Secretary, acting as appropriate through the Under
  Secretary, shall--
  `(1) consult with other Federal agencies, including the Department of
  Defense and the Department of Energy, to ensure consistent and, where
  possible, coordinated efforts to promote the development and adoption of
  advanced manufacturing technologies;
  `(2) assist the Office of Science and Technology Policy in its efforts to
  coordinate the manufacturing technology activities of the various Federal
  agencies; and
  `(3) identify Federal statutes, regulations, and policies that may have an
  adverse impact on carrying out this title, and recommend appropriate changes
  to the appropriate Federal agencies and, where appropriate, to the President.
The Secretary shall annually report to Congress on actions taken under
this subsection.
  `(b) FEDERAL AGENCIES- To the extent permitted by other law, other Federal
  agencies shall assist the Secretary in carrying out this title.'.
SEC. 204. MISCELLANEOUS AND CONFORMING AMENDMENTS.
  (a) DEFINITIONS- Section 4 of the Stevenson-Wydler Technology Innovation
  Act of 1980 (15 U.S.C. 3703) is amended by adding at the end the following
  new paragraphs:
  `(14) `Director' means the Director of the National Institute of Standards
  and Technology.
  `(15) `Institute' means the National Institute of Standards and Technology.
  `(16) `Assistant Secretary' means the Assistant Secretary of Commerce for
  Technology Policy.
  `(17) `Advanced manufacturing technology' includes--
  `(A) numerically-controlled machine tools, robots, automated process control
  equipment, computerized flexible manufacturing systems, associated computer
  software, and other technology for improving manufacturing and industrial
  production which advance the state-of-the-art; and
  `(B) novel techniques and processes designed to improve manufacturing
  quality, productivity, and practices, including engineering design,
  quality assurance, concurrent engineering, continuous process production
  technology, energy efficiency, waste minimization, inventory management,
  upgraded worker skills, and communications with customers and suppliers.
  `(18) `Modern technology' means the best available proven technology,
  techniques, and processes appropriate to enhancing the productivity of
  manufacturers.'.
  (b) REDESIGNATIONS- The Stevenson-Wydler Technology Innovation Act of 1980
  (15 U.S.C. 3701 et seq.) is amended--
  (1) by inserting immediately after section 4 the following new title heading:
`TITLE I--DEPARTMENT OF COMMERCE AND RELATED PROGRAMS';
  (2) by redesignating sections 5 through 10 as sections 101 through 106,
  respectively;
  (3) by striking section 21;
  (4) by redesignating sections 16 through 20, and 22, as sections 107
  through 112, respectively;
  (5) by inserting immediately after section 112 (as redesignated by paragraph
  (4) of this subsection) the following new title heading:
`TITLE II--FEDERAL TECHNOLOGY TRANSFER';
  (6) by redesignating sections 11 through 15 as sections 201 through 205,
  respectively;
  (7) by redesignating section 23 as section 206;
  (8) in section 4--
  (A) by striking `section 5' each place it appears and inserting in lieu
  thereof `section 101';
  (B) in paragraphs (4) and (6), by striking `section 6' and `section 8'
  each place they appear and inserting in lieu thereof `section 102' and
  `section 104', respectively; and
  (C) in paragraph (13), by striking `section 6' and inserting in lieu thereof
  `section 102';
  (9) in section 105 (as redesignated by paragraph (2) of this subsection)
  by striking `section 6' each place it appears and inserting in lieu thereof
  `section 102';
  (10) in section 106(d) (as redesignated by paragraph (2) of this subsection)
  by striking `7, 9, 11, 15, 17, or 20' and inserting in lieu thereof `103,
  105, 108, 111, 201, or 205';
  (11) in section 202(b) (as redesignated by paragraph (6) of this subsection)
  by striking `section 14' and inserting in lieu thereof `section 204';
  (12) in section 204(a)(1) (as redesignated by paragraph (6) of this
  subsection) by striking `section 12' and inserting in lieu thereof
  `section 202';
  (13) in section 112 (as redesignated by paragraph (4) of this subsection)
  by striking `sections 11, 12, and 13' and inserting in lieu thereof
  `sections 201, 202, and 203';
  (14) in section 206 (as redesignated by paragraph (7) of this subsection)--
  (A) by striking `section 11(b)' in subsection (a)(2) and inserting in lieu
  thereof `section 201(b)'; and
  (B) by striking `section 6(d)' in subsection (b) and inserting in lieu
  thereof `section 102(d)'; and
  (15) by adding at the end of section 201 (as redesignated by paragraph
  (6) of this subsection) the following new subsection:
  `(j) ADDITIONAL TECHNOLOGY TRANSFER MECHANISMS- In addition to the technology
  transfer mechanisms set forth in this section and section 202 of this Act,
  the heads of Federal departments and agencies also may transfer technologies
  through the technology transfer, extension, and deployment programs of
  the Department of Commerce and the Department of Defense.'.
SEC. 205. MANUFACTURING TECHNOLOGY CENTERS.
  (a) MANUFACTURING TECHNOLOGY CENTERS- Section 25 of the National Institute
  of Standards and Technology Act (15 U.S.C. 278k), is amended--
  (1) by amending the section heading to read as follows: `MANUFACTURING
  TECHNOLOGY CENTERS';
  (2) in subsection (c)(5), by striking `which are designed' and all that
  follows through `operation of a Center' and inserting in lieu thereof
  `to a maximum of one-third Federal funding. Each center which receives
  financial assistance under this section shall be evaluated during its sixth
  year of operation, and at such subsequent times as the Secretary considers
  appropriate, by an evaluation panel appointed by the Secretary in the same
  manner as was the evaluation panel previously appointed. The Secretary
  shall not provide funding for additional years of the Center's operation
  unless the evaluation is positive and the Secretary finds that continuation
  of funding furthers the goals of the Department. Such additional Federal
  funding shall not exceed one-third of the cost of the Center's operations';
  (3) by striking subsection (d); and
  (4) by adding at the end the following new subsections:
  `(d) If a Center receives a positive evaluation during its third year of
  operation, the Director may, any time after that evaluation, contract with
  the Center to provide additional technology extension or transfer services
  above and beyond the baseline activities of the Center. Such additional
  services may include, but are not necessarily limited to, the development
  and operation of the following:
  `(1) Programs to assist small- and medium-sized manufacturers and their
  employees in the Center's region to learn and apply the technologies,
  techniques, and processes associated with systems management technology
  or with improving manufacturing productivity.
  `(2) Programs focused on the testing, development, and application of
  manufacturing and process technologies within specific technical fields
  such as advanced materials or electronics fabrication for the purpose of
  assisting United States companies, both large and small and both within
  the Center's original service region and in other regions, to improve
  manufacturing, product design, workforce training, and production in those
  specific technical fields.
  `(3) Industry-lead demonstration programs that explore the value of
  innovative nonprofit manufacturing technology consortia to provide ongoing
  research, technology transfer, and worker training assistance for industrial
  members. An award under this paragraph shall be for no more than $500,000 per
  year, and shall be subject to renewal after a 1-year demonstration period.
  `(e) In addition to any assistance provided or contracts entered into with a
  Center under this section, the Director is authorized to make separate and
  smaller awards, through a competitive process, to nonprofit organizations
  which wish to work with a Center. Such awards shall be for the purpose of
  enabling those organizations to provide supplemental outreach services,
  in collaboration with the Center, to small- and medium-sized manufacturers
  located in parts of the region served by the Center which are not easily
  accessible to the Center and which are not served by any other manufacturing
  outreach center. Organizations which receive such awards shall be known
  as Local Manufacturing Offices. In reviewing applications, the Director
  shall consider the needs of rural as well as urban manufacturers. No single
  award for a Local Manufacturing Office shall be for more than three years,
  awards shall be renewable through the competitive awards process, and no
  award shall be made unless the applicant provides matching funds at least
  equal to the amount received under this section.
  `(f) In carrying out this section, the Director shall coordinate his efforts
  with the plans for the Nationwide Network of Manufacturing Outreach Centers
  established under section 302 of the Stevenson-Wydler Technology Innovation
  Act of 1980.
  `(g) There are authorized to be appropriated to the Secretary for fiscal
  year 1994 $35,000,000 for carrying out this section.'.
SEC. 206. ENGINEERING RESEARCH CENTERS.
  (a) ENGINEERING RESEARCH CENTERS- The Director of the National Science
  Foundation shall strengthen and expand the Engineering Research Centers
  Program with the goals of increasing the engineering talent base versed
  in technologies critical to the Nation's future, with emphasis on advanced
  manufacturing, and of advancing fundamental engineering knowledge in these
  technologies. Awards under this section shall be made on a competitive,
  merit review basis.
  (b) USE OF FUNDS- Awards made under this section shall be used to establish
  up to 5 new Engineering Research Centers having a research and education
  focus on advanced manufacturing in critical technology fields which have been
  identified by the Office of Science and Technology Policy. Such award may
  include support for acquisition of instrumentation, equipment, and facilities
  related to the research and education activities of the Centers and support
  for undergraduate students to participate in the activities of the Centers.
  (c) AUTHORIZATION OF APPROPRIATIONS- In addition to sums otherwise available
  for Engineering Research Centers, there are authorized to be appropriated
  to the National Science Foundation $20,000,000 for the period encompassing
  fiscal years 1994 and 1995 for the purposes of this section.
TITLE III--CRITICAL TECHNOLOGIES
Subtitle A--Miscellaneous
SEC. 301. FINDINGS.
  The Congress finds that--
  (1) the rapid, effective use of a range of advanced technologies in the
  design and production of products has been a key factor in the success of
  foreign-based companies;
  (2) our competitor nations in the global marketplace have been very
  successful in targeting critical emerging technologies, such as computers
  and advanced electronics, advanced materials applications, and biotechnology;
  (3) investments in the development of civilian technology have tremendous
  long-term economic and employment potential;
  (4) our most successful competitor nations in the global marketplace have
  created supportive structures and programs within their national governments
  to help their domestic industries increase their global market shares;
  (5) agriculture and aerospace are two examples of industries that have
  achieved commercial success with strong support from the United States
  Government; and
  (6) there is a need to strengthen the United States commitment to bridging
  the gap between research and development and the application of technology.
SEC. 302. ANNUAL REPORT ON NEGOTIATIONS POTENTIALLY AFFECTING FEDERAL RESEARCH
AND DEVELOPMENT PROGRAMS.
  The Secretary of Commerce shall, after consultation with the Director
  of the Office of Science and Technology Policy and other appropriate
  Federal officials, report annually to the Committee on Commerce, Science,
  and Transportation of the Senate and the Committee on Science, Space,
  and Technology of the House of Representatives on existing or proposed
  executive branch positions in international trade negotiations which would
  affect Federal domestic research and development programs. Such report,
  which may limit all reference to nationally or industrially sensitive
  information to a classified appendix to the report, shall cover formal
  agreements, informal agreements, and formal positions in negotiations,
  to the extent those items are not covered in other reports provided to
  such Committees, including--
  (1) science and technology agreements, including agreements to participate
  in cooperative research and development projects;
  (2) agreements affecting intellectual property, investment measures,
  subsidies, or procurement agreements; and
  (3) the United States position on, or any agreement entered into restricting
  the free flow of United States technology or technology-based products to
  any market or trading bloc.
Subtitle B--Council on Technology and Competitiveness
SEC. 311. COUNCIL ON TECHNOLOGY AND COMPETITIVENESS.
  (a) ESTABLISHMENT- There is established within the Executive Office of
  the President a Council on Technology and Competitiveness (in this section
  referred to as the `Council').
  (b) COMPOSITION- The Council shall be composed of 11 members as follows:
  (1) The Director of the Office of Science and Technology Policy.
  (2) The Secretary of Defense, or the Secretary's designee.
  (3) The Secretary of Energy, or the Secretary's designee.
  (4) The Secretary of Health and Human Services, or the Secretary's designee.
  (5) The Secretary of Commerce, or the Secretary's designee.
  (6) The Administrator of the National Aeronautics and Space Administration,
  or the Administrator's designee.
  (7) The Director of the National Science Foundation, or the Director's
  designee.
  (8) The United States Trade Representative, or the Trade Representative's
  designee.
  (9) The Chairman of the Council of Economic Advisors, or the Chairman's
  designee.
  (10) Two other members appointed by the President from among officials of
  the executive branch.
  (c) CHAIRMAN- The President shall designate a chairman of the Council from
  among the members of the Council who are senior officials of the Executive
  Office of the President.
  (d) TERMS- (1) The term of service of members of the Council appointed
  under subsection (b)(10) shall be 4 years, except that of the members
  first appointed, one shall be appointed for a term of 2 years.
  (2) A vacancy in the membership of the Council shall be filled in the same
  manner as the original appointment. A member appointed under this paragraph
  shall serve the remainder of the unexpired term of the precedessor of
  that member.
  (3) Members of the Council referred to in paragraph (1) may be reappointed.
  (e) MEETINGS- The Council shall meet not less than 4 times a year.
  (f) DUTIES- The duties of the Council shall be the following:
  (1) To develop a plan to ensure United States leadership in technologies
  (and their applications) which the Council considers essential for
  industrial productivity, economic growth, and national security, including
  critical technologies identified pursuant to section 603 of the National
  Science and Technology Policy, Organization, and Priorities Act of 1976
  (42 U.S.C. 6683). Such plan shall address the following factors to the
  extent they impact technology development and economic growth:
  (A) Investment climate.
  (B) Workforce capability.
  (C) Technology development and application.
  (D) Manufacturing infrastructure.
  (E) Transportation, communications, and other infrastructure systems.
  (F) Product and quality standards.
  (G) International trade.
  (H) Regulatory affairs.
  (I) Government reorganization.
  (2) To develop and implement procedures to ensure private sector input to
  the plan developed under paragraph (1).
  (3) To advise the President and the Congress of changes to Federal law,
  regulations, and policies necessary to implement the plan developed under
  paragraph (1).
  (4) To serve as the Operating Committee for the Critical Technologies
  Institute established under section 822 of the National Defense Authorization
  Act for Fiscal Year 1991.
  (g) ANNUAL REPORT- (1) Within one year after the date of enactment of this
  Act, and after solicitation and consideration of public comment, the Council
  shall submit a report to the President and the Congress that contains--
  (A) the plan developed under subsection (f)(1); and
  (B) recommendations and procedures required under subsection (f)(2) and (3).
  (2) The Council shall, annually after the submission of the report under
  paragraph (1), or more often as appropriate, submit a report updating the
  plan and recommendations contained therein.
  (h) ADDITIONAL FUNCTIONS- The Council shall, in addition to carrying out
  its duties under subsection (f), make and furnish such additional studies,
  reports, and recommendations with respect to matters of Federal technology
  policy as the President may request.
  (i) USE OF FEDERAL RESOURCES- The Council shall, to the fullest extent
  possible, use the services, facilities, and information of other Federal
  agencies, particularly the Federal Coordinating Council on Science,
  Engineering, and Technology, the Critical Technologies Institute, the
  Department of Commerce, and the Department of Defense, as well as private
  research organizations, in order to avoid duplication of effort and expense.
  (j) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the Council $2,000,000 for the period encompassing fiscal years 1994
  and 1995, for carrying out this section.
  (k) AMENDMENTS- Section 822(c) of the National Defense Authorization Act
  for Fiscal Year 1991 is amended to read as follows:
  `(c) OPERATING COMMITTEE- The Council on Technology and Competitiveness
  described in section 311 of the National Competitiveness Act of 1992 shall
  serve as the Operating Committee of the Institute.'.
Subtitle C--Advanced Technology Program
SEC. 321. DEVELOPMENT OF PROGRAM PLAN.
  The Secretary of Commerce, 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 Defense Advanced Research
  Projects Agency;
  (2) establishment of staff positions that can be filled by industrial or
  technical experts for a period of one to two years;
  (3) broadening of the scope of the program to include as many critical
  technologies as is appropriate; and
  (4) changes that may be needed when annual funds available for grants
  under the Program reach levels of $200,000,000 and $500,000,000.
SEC. 322. FUNDING OF CONSORTIA.
  (a) ADDITIONAL CONSORTIA- At least two additional consortia relating
  to technologies identified by the Science Advisor to the President as
  critical technologies are authorized to be funded. Except as otherwise
  provided in this section, such consortia shall be selected in accordance
  with the procedures of section 28 of the National Institute of Standards
  and Technology Act (15 U.S.C. 278n) including merit review procedures.
  (b) CONSORTIA SELECTION CRITERIA- In selecting consortia pursuant to
  subsection (a), the Secretary of Commerce, acting through the Director of
  the National Institute of Standards and Technology, shall give priority to--
  (1) technologies that have high potential for contributing to the society
  and economy;
  (2) technologies that will contribute to a variety of end-users;
  (3) technologies that will accelerate advances in a variety of supporting,
  complementary technologies;
  (4) technologies that display a clear benefit from the networking advantages
  provided by consortia;
  (5) consortia programs that involve firms that have shown a high rate of
  success in commercializing technology and that do not give undue advantage
  to a single firm; and
  (6) consortia programs that involve members that exhibit thorough
  understanding of the international state-of-the-art and the activities of
  the national laboratories.
  (c) INDEPENDENT TECHNICAL REVIEW- The Secretary of Commerce, acting through
  the Director of the National Institute of Standards and Technology shall
  provide for regular technical reviews of the consortia projects, and shall
  provide annual status reports to the Committee on Science, Space, and
  Technology of the House of Representatives and the Committee on Commerce,
  Science, and Transportation of the Senate.
SEC. 323. TECHNICAL AMENDMENT.
  Section 28 of the National Institute of Standards and Technology Act (15
  U.S.C. 278n) is amended by adding at the end the following new subsection:
  `(k) Notwithstanding subsections (b)(1)(B)(ii) and (d)(3), the Director may
  grant an extension of not to exceed 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 additional cost to the Federal Government.'.
SEC. 324. AUTHORIZATION OF APPROPRIATIONS.
  There are authorized to be appropriated to the Secretary for carrying
  out section 28 of the National Institute of Standards and Technology
  Act (15 U.S.C. 278n) $1,400,000,000 for the period encompassing fiscal
  years 1994 through 1997. There are authorized to be appropriated to the
  Secretary for carrying out section 322 of this Act $150,000,000 for the
  period encompassing fiscal years 1994 through 1997. No more than 5 percent
  of the funds authorized under this section may be used for the National
  Institute of Standards and Technology's management of programs authorized
  under sections 25 through 28 of the National Institute of Standards and
  Technology Act (15 U.S.C. 278k through 278n).
Subtitle D--Technology Development Loans
SEC. 331. TECHNOLOGY DEVELOPMENT LOANS.
  (a) AUTHORITY TO MAKE LOANS- The Secretary of Commerce may make loans--
  (1) acting through the Under Secretary of Commerce for Technology, to small
  and medium sized businesses eligible for assistance under section 28 of the
  National Institute of Standards and Technology Act (15 U.S.C. 278n), to the
  extent provided in section 504(b) of the Congressional Budget Act of 1974; or
  (2) acting through critical technologies development companies licensed
  under section 351 of this title, to small and medium sized businesses
  eligible for assistance under subtitle E of this title, to the extent
  provided in section 355 of this title.
  (b) PURPOSE- Loans under this section shall be for growth, modernization,
  and expansion of small and medium sized businesses engaged in research,
  development, demonstration, or exploitation of advanced technologies
  and products, including those in fields such as automation, electronics,
  advanced materials, biotechnology, and optical technologies.
  (c) INTEREST RATE, TERMS, AND CONDITIONS- Loans under this section shall
  be made at an interest rate equal to the Government borrowing rate plus
  an insurance surcharge of up to 2 percent, and shall have other terms and
  conditions consistent with section 355 of this title.
  (d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  $20,000,000 for fiscal year 1994 for the purposes of this section.
Subtitle E--Critical Technologies Development
PART I--GENERAL PROVISIONS
SEC. 341. SHORT TITLE.
  This subtitle may be cited as the `Critical Technologies Development Act
  of 1992'.
SEC. 342. FINDINGS AND PURPOSES.
  (a) FINDINGS- The Congress finds that--
  (1) the level and rate of creation, development, and adoption of critical
  and other technologies are key determinants of productivity improvement,
  economic growth, and global competitiveness of the United States;
  (2) maintaining viable United States-based high technology industries,
  and encouraging and facilitating their formation, development, and growth,
  are vital to both the national security and well-being of the United States;
  (3) over the last decade, the relative decline in the level and rate of
  inflation-adjusted investment in research and development, and in new
  plant and equipment that embody new technologies, by the United States
  public and private sector has contributed to a general decline in United
  States industrial competitiveness;
  (4) encouraging and facilitating the formation, development, and growth of
  United States-based high technology companies and industries, and realizing
  the benefits they provide to productivity improvement, economic growth,
  and global competitiveness, can be achieved by enhancing the financial
  returns and reducing the technical, financial, and business risk associated
  with such endeavors;
  (5) the creation, development, and adoption of critical and other
  technologies is generally a high risk, lengthy process that is most
  appropriately financed with long-term investment capital, such as equity
  financing;
  (6) since 1985, the amount of new venture or risk capital available and
  committed to finance development and exploitation of critical and other
  technologies has declined significantly due to broad-based financial
  distress in the United States economy and other factors, and has impeded
  the formation, development, and growth of domestic business concerns
  engaged in such activities; and
  (7) it is in the national interest for the Federal Government to take such
  actions as may be necessary and appropriate to increase the level and rate
  of creation, development, and adoption of critical and other technologies
  and to correct market failures that impede such activities.
  (b) PURPOSES- The purposes of this subtitle are--
  (1) to enhance social and economic returns by encouraging and facilitating
  development and exploitation of critical or other technologies, through
  partnerships between the public and private sectors, and in a manner that
  provides for cost-sharing, project initiation and design by private firms,
  insulation from political concerns, prudent diversification, rigorous
  program evaluation and review, market determination of merit, and appropriate
  protection of the interests of taxpayers and the Federal Government;
  (2) to increase the availability and allocation of long-term, patient
  capital for the formation, development, and growth of domestic business
  concerns engaged principally in development and exploitation of critical
  or other technologies;
  (3) to stimulate and facilitate the formation and growth of for-profit,
  privately-capitalized, privately-managed investment intermediaries, the
  investment policy of which shall be solely to make investments in and
  provide management assistance to domestic business concerns which are
  engaged principally in the development and exploitation of critical or
  other technologies; and
  (4) to establish and provide, as needed, technical and business advisory
  services to investment intermediaries licensed under this subtitle, and to
  recipients of investment capital from those intermediaries, that can enhance
  their opportunity for success and reduce their technical and business risk.
SEC. 343. DEFINITIONS.
  For purposes of this subtitle--
  (1) the term `articles' means articles of incorporation for an incorporated
  body, and the functional equivalent, or other similar documents specified
  by the Under Secretary, for other business entities;
  (2) the term `critical technologies' means technologies identified as
  critical technologies pursuant to section 603(d) of the National Science
  and Technology Policy, Organization, and Priorities Act of 1976 (42
  U.S.C. 6683(d));
  (3) the term `Department' means the Department of Commerce;
  (4) the term `executive agency' has the meaning given such term in section
  105 of title 5, United States Code;
  (5) the term `license' means a license issued by the Under Secretary under
  section 351;
  (6) the term `licensee' means a critical technologies development company
  licensed under section 351;
  (7) the term `preferred securities' means preferred stock or a preferred
  limited partnership interest or other similar security, as defined by the
  Under Secretary by regulation;
  (8) the term `private equity capital' means the paid-in capital and paid-in
  surplus of a licensee organized as a corporation, or the partnership
  capital of a licensee 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 securities; or
  (C) derived directly or indirectly from any Federal source;
  (9) the term `qualified business concern' means an incorporated or
  unincorporated enterprise, organized under the laws of a State, if--
  (A)(i) the business of such enterprise includes the pursuit of commercial
  applications described in section 9(e)(4)(C) of the Small Business Act
  (15 U.S.C. 638(e)(4)(C));
  (ii) the principal business of such enterprise is the development or
  exploitation of a critical technology; or
  (iii) such enterprise is eligible for assistance under section 28 of the
  National Institute of Standards and Technology Act (15 U.S.C. 278n); and
  (B) such enterprise 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);
  (10) the term `Secretary' means the Secretary of Commerce;
  (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 Islands, and any other territory
  or possession of the United States;
  (12) the term `Under Secretary' means the Under Secretary of Commerce
  for Technology;
  (13) the term `university sponsored licensee' means a critical technologies
  development company licensed under section 351 in which a single university
  or consortium of universities have at least a 25 percent investment interest
  in the private equity capital of such licensee; and
  (14) the term `venture capital' means consideration for such common stock,
  preferred stock, or other financing with subordination or nonamortization
  characteristics as the Under Secretary determines to be substantially
  similar to equity financing.
SEC. 344. GENERAL RESPONSIBILITIES.
  (a) CONSULTATION, CONSOLIDATION, AND DELEGATION- The Under Secretary
  may consult with and, to the extent permitted by law, shall utilize
  the capabilities of other executive agencies, as appropriate, to ensure
  the efficient and effective implementation of this subtitle. The Under
  Secretary shall 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 administrative functions,
  as necessary and appropriate, to another executive agency.
  (b) OTHER EXECUTIVE AGENCIES- To the extent permitted by law, other executive
  agencies shall assist the Under Secretary in carrying out this subtitle.
SEC. 345. ADVISORY COMMITTEE.
  (a) ESTABLISHMENT- The Under Secretary shall establish an independent
  advisory committee to advise the Under Secretary on matters related to
  policy, planning, operation, and performance of the critical technologies
  development program under this subtitle.
  (b) MEMBERS- The advisory committee shall be composed of at least 7 but
  not more than 13 members representing industry, small business, academia,
  and the financial community.
  (c) TERMINATION- Section 14 of the Federal Advisory Committee Act shall
  not apply to the advisory committee established under this section.
PART II--PROGRAM STRUCTURE AND OPERATION
SEC. 351. ORGANIZATION AND LICENSING.
  (a) IN GENERAL- A licensee shall be an incorporated body or a limited
  partnership organized and chartered or otherwise existing under State
  law solely for the purpose of performing the functions and conducting the
  activities contemplated under this subtitle, which, if incorporated, has
  succession for a period of not less than 30 years unless sooner dissolved
  by its shareholders, and if a limited partnership, has succession for
  a period of not less than 10 years, and possesses the powers reasonably
  necessary to perform such functions and conduct such activities.
  (b) ARTICLES- The articles of any licensee shall specify in general terms
  the objects for which the licensee is formed, the name assumed by such
  licensee, the area or areas in which its operations are to be carried on,
  the place where its principal office is to be located, and the amount and
  classes of its shares of capital stock. Such articles may contain any
  other provisions not inconsistent with this subtitle that the licensee
  may see fit to adopt for the regulation of its business and the conduct
  of its affairs. Such articles and any amendments thereto adopted from time
  to time shall be subject to the approval of the Under Secretary.
  (c) APPROVAL OF ARTICLES; LICENSING- The articles and amendments thereto
  shall be forwarded to the Under Secretary for consideration and approval
  or disapproval. In determining whether to approve a prospective licensee's
  articles and permit it to operate under the provisions of this subtitle,
  the Under Secretary shall give due regard, among other things, to the
  general business reputation, character, suitability, and demonstrated
  ability in the growth of qualified business concerns, of the proposed
  owners and management of the critical technologies development company,
  and the likelihood of successful operations of such company including
  adequate profitability and financial soundness. After consideration of all
  relevant factors, if the Under Secretary approves the company's articles,
  the Under Secretary may approve the company to operate under the provisions
  of this subtitle and issue the company a license for such operation.
SEC. 352. CAPITAL REQUIREMENTS.
  (a) CAPITAL REQUIREMENTS AND MANAGEMENT- (1) The private equity capital of a
  licensee shall be adequate to ensure a reasonable prospect that the licensee
  will be operated soundly and profitably, and managed actively and prudently
  in accordance with its articles. Such private equity capital shall not be
  less than $10,000,000, except that, in the case of a university sponsored
  licensee, such private equity capital shall not be less than $5,000,000.
  (2) The management and operational control of a licensee shall be carried
  out by the private sector.
  (3) Private and public pension funds may contribute to the private
  equity capital of a licensee without restriction as to the amount of
  such contribution.
  (4) State and local government entities may contribute not more than 40
  percent of the total private equity capital of a licensee.
  (b) LIMITATION ON STOCK OWNERSHIP- The aggregate amount of shares in any such
  licensee or licensees which may be owned or controlled by any stockholder, or
  by any group or class of stockholders, may be limited by the Under Secretary.
SEC. 353. FINANCING.
  (a) AUTHORITY TO PURCHASE NONPARTICIPATING PREFERRED SECURITIES-
  (1) To encourage the formation and growth of a licensee, the Under
  Secretary, or a trust or pool acting on behalf of the Under Secretary,
  may purchase nonvoting, nonparticipating preferred securities issued by
  such licensee. Such preferred securities may only be issued to the Under
  Secretary, or a trust or pool acting on behalf of the Under Secretary. Such
  preferred securities shall be senior in priority for all purposes to all
  equity interests in a licensee except--
  (A) Federal equity interests; and
  (B) the equity interests of a university or consortium of universities,
unless the Under Secretary, in the exercise of reasonable investment prudence
and in considering the financial soundness of the licensee, determines
otherwise. Such purchases may be made on such terms and conditions as the
Under Secretary shall establish by regulation or set forth in contract to
ensure compliance with paragraph (2) and the payment of dividends when due
by the licensee issuing such preferred securities. The equity interests
described in subparagraphs (A) and (B) shall be equal in priority to each
other for all purposes.
  (2) Such preferred securities shall be redeemed by the issuer not later than
  10 years after their date of issuance for an amount equal to 100 percent of
  the original issue price plus any accrued and unpaid dividends. Redemption
  of such preferred securities may be extended by mutual consent for no more
  than 5 years beyond such expiration date.
  (3) The dividend on such preferred securities shall be cumulative and
  preferred and paid out of net realized earnings and returns of capital
  available for distribution.
  (4) Dividends on such preferred securities shall be made at a rate determined
  appropriate by the Secretary of the Treasury, taking into consideration the
  current average market yield on outstanding marketable debt obligations of
  the United States with remaining periods to maturity comparable to the time
  to required redemption of such preferred securities, plus such additional
  charge, if any, toward covering expected defaults and other administrative
  costs of carrying out this subtitle as the Under Secretary may determine
  to be reasonable and appropriate. Such additional charge shall not exceed
  2 percent.
  (b) RESTRICTIONS- (1) Not less than 65 percent of the private equity capital
  of a licensee shall be invested and maintained or legally committed to be
  invested in qualified business concerns in accordance with its license, this
  subtitle, and regulations issued under this subtitle, before any preferred
  securities issued by the licensee may be purchased under this section.
  (2) The total par value amount of debt obligations, and preferred securities
  purchased by the Under Secretary under subsection (a) or otherwise,
  issued and outstanding at any one time from a licensee shall not exceed
  200 percent of the total private equity capital of the licensee.
  (3) The total amount of preferred securities purchased by the Under
  Secretary under subsection (a) and by all other Federal departments
  or agencies under any other law and outstanding at any one time from a
  licensee or a combination of licensees which are commonly controlled,
  as determined by the Under Secretary, shall not exceed $100,000,000.
  (c) USE OF PROCEEDS- Licensees issuing preferred securities under this
  section shall invest and maintain a minimum percentage, determined by
  the Under Secretary to be reasonable and appropriate, of the proceeds
  derived from such financing in the venture capital of qualified business
  concerns. The Under Secretary shall ensure that at least 50 percent of
  such investments shall be for early stage financing as necessary to--
  (1) prove a concept;
  (2) develop a preprototype or prototype of a product;
  (3) develop a product or service that exploits a new technology;
  (4) conduct initial marketing; or
  (5) initiate commercial manufacturing and sales.
Such proceeds may also be used to redeem any preferred securities that have
been outstanding at least 5 years, as provided in this section.
  (d) DEFERRAL OF DIVIDEND PAYMENTS- The payment of dividends on preferred
  securities under this section may be deferred by the issuer until such time
  as, in the determination of the Under Secretary, the issuer may reasonably be
  expected to generate sufficient funds from operations to make such payments
  without incurring undue financial hardship. Accumulated and unpaid dividends
  on such preferred securities shall be paid to the United States by the
  issuer before or at the time of redemption of the preferred securities and
  before any distribution of net realized earnings and returns of capital,
  except as provided in subsection (e)(2) (B) and (C). During the time of any
  deferral under this subsection, the Under Secretary shall make, on behalf
  of the issuer, required dividend payments to the holder of the preferred
  securities, its agents or assigns, or the appropriate central registration
  agent, if any. The authority to make dividend payments provided in this
  subsection shall be limited to the extent of amounts provided in advance
  in appropriations Acts for such purposes.
  (e) PROFIT DISTRIBUTION- (1) The Under Secretary shall require by contract
  that a certain amount, sufficient to pay dividends owed to the Federal
  Government and to satisfy the requirements of subsection (a)(2), of net
  realized earnings and returns of capital available for distribution, as
  defined by the Under Secretary, of a licensee issuing preferred securities
  which have been purchased pursuant to subsection (a)(1) be paid to the
  Under Secretary.
  (2)(A) Except as provided in subparagraphs (B) and (C), any distribution of
  net realized earnings and returns of capital made by a licensee shall first
  be used to pay accumulated and unpaid dividends on outstanding preferred
  securities, and to satisfy the requirements of subsection (a)(2).
  (B) For purposes of subparagraph (A) of this paragraph, the requirements
  of subsection (a)(2) shall be considered to be satisfied if necessary
  and appropriate actions, as determined by the Under Secretary, have
  been undertaken by the licensee to ensure that such requirements will
  be satisfied.
  (C) If a licensee is operating as a limited partnership, it may distribute
  to the partners an amount equal to the estimated amount of income taxes
  due from such partners on their share of undistributed partnership income
  before payments described in subparagraph (A) are made.
  (3) Any distribution of net realized earnings and returns of capital made by
  a licensee that exceed amounts required for the purposes stated in paragraph
  (2), shall be distributed pro rata to all investors entitled to such
  distributions. The United States shall receive no funds under this paragraph.
  (f) USE OF PAYMENTS- Amounts received by the United States from the
  payment of dividends and the redemption or repurchase of preferred
  securities pursuant to this section, and fees paid to the United States
  by a licensee pursuant to this subtitle, shall be deposited in a business
  loan and investment fund 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. 354. EQUITY CAPITAL FOR QUALIFIED BUSINESS CONCERNS.
  (a) FUNCTION OF LICENSEES- It shall be a function of each licensee to
  provide a source of equity capital for incorporated and unincorporated
  qualified business concerns, in such manner and under such terms as the
  licensee may fix in accordance with the regulations of the Under Secretary.
  (b) PROVISION OF CAPITAL- Equity capital provided to incorporated
  qualified business concerns under this section may be provided directly
  or in cooperation with other investors, incorporated or unincorporated,
  through agreements to participate on an immediate basis.
SEC. 355. LOANS TO QUALIFIED BUSINESS CONCERNS.
  (a) LOAN AUTHORITY- Each licensee is authorized to make loans, in the manner
  and subject to the conditions described in this section, to incorporated and
  unincorporated qualified business concerns in order to provide such concerns
  with funds needed for sound financing, growth, modernization, and expansion.
  (b) DIRECT OR PARTICIPATION LOANS- Loans made under this section may
  be made directly or in cooperation with other lenders, incorporated or
  unincorporated, through agreements to participate on an immediate or
  deferred basis.
  (c) MAXIMUM RATE OF INTEREST- The maximum rate of interest for the
  licensee's share of any loan made under this section shall be determined
  by the Under Secretary.
  (d) MATURITY- Any loan made under this section shall have a maturity not
  exceeding 10 years.
  (e) INVESTMENT CONSIDERATIONS- Any loan made under this section shall be
  of such sound value, or so secured, as to reasonably assure repayment.
  (f) EXTENSION OR RENEWAL- Any licensee which has made a loan to a qualified
  business concern under this section is authorized to extend the maturity
  of or renew such loan for additional periods, not exceeding 5 years, if
  the licensee finds that such extension or renewal will aid in the orderly
  liquidation of such loan.
SEC. 356. LIMITATION ON AMOUNT OF ASSISTANCE.
  The aggregate amount of obligations and securities acquired and for which
  commitments may be issued by a licensee for any single qualified business
  concern shall not exceed 20 percent of the private equity capital of such
  licensee, unless the Under Secretary approves a greater amount.
SEC. 357. OPERATION AND REGULATION.
  (a) COOPERATION WITH FINANCIAL INSTITUTIONS- Wherever practicable the
  operations of a licensee, including the generation of business, may
  be undertaken in cooperation with banks or other investors or lenders,
  incorporated or unincorporated, and any servicing or initial investigation
  required for loans or acquisitions of securities by the licensee under the
  provisions of this subtitle may be handled through such banks or other
  investors or lenders on a fee basis. Any licensee may receive fees for
  services rendered to such banks and other investors and lenders.
  (b) USE OF ADVISORY SERVICES; DEPOSITORY OR FISCAL AGENTS; INVESTMENT OF
  FUNDS- Each licensee may make use, wherever practicable, of the advisory
  services of the Federal Reserve System and of the Department of Commerce
  which are available for and useful to industrial and commercial businesses,
  and may provide consulting and advisory services on a fee basis and have
  on its staff persons competent to provide such services. Any Federal
  Reserve bank is authorized to act as a depository or fiscal agent for any
  licensee operating under the provisions of this subtitle. Such licensees
  are authorized to invest funds not reasonably needed for their operations
  in direct obligations of, or obligations guaranteed as to principal and
  interest by, the United States, or in certificates of deposit maturing
  within one year or less, issued by any institution the accounts of which
  are insured by the Federal Deposit Insurance Corporation.
  (c) REGULATIONS- The Under Secretary is authorized to prescribe regulations
  governing the operations of licensees, and to carry out the provisions of
  this subtitle, in accordance with the purposes of this subtitle.
  (d) FORFEITURE- Should any licensee violate or fail to comply with any of
  the provisions of this subtitle or of regulations prescribed hereunder, all
  of its rights, privileges, and franchises derived therefrom may thereby
  be forfeited. Before any such licensee shall be declared dissolved,
  or its rights, privileges, and franchises forfeited, any noncompliance
  with or violation of this subtitle shall be determined and adjudged by
  a court of the United States of competent jurisdiction in a suit brought
  for that purpose in the district, territory, or other place subject to the
  jurisdiction of the United States, in which the principal office of such
  licensee is located. Any such suit shall be brought by the United States
  at the instance of the Secretary or the Attorney General.
  (e) LIABILITY OF THE UNITED STATES- Nothing in this subtitle or in any other
  provision of law imposes any liability on the United States with respect
  to any obligations entered into, or stocks issued, or commitments made,
  by any licensee operating under the provisions of this subtitle.
SEC. 358. ANNUAL AUDIT AND REPORT.
  (a) REQUIREMENT- The Under Secretary shall prepare, in consultation with
  the advisory committee established under section 345, and submit annually a
  report to the Congress containing a full and detailed account of operations
  under this subtitle. Such report shall include an audit setting forth
  the amount and type of disbursements, receipts, and losses sustained by
  the Federal Government as a result of such operations during the preceding
  fiscal year, together with an estimate of the total disbursements, receipts,
  and losses which the Federal Government can reasonably expect to incur as
  a result of such operations during the then current fiscal year.
  (b) CONTENTS- In the annual report submitted under subsection (a), the
  Under Secretary shall also include full and detailed accounts relative to
  the following matters:
  (1) The Under Secretary's plans to ensure the provision of licensee
  financing to all areas of the country and to all qualified business concerns,
  including steps taken to accomplish that goal.
  (2) Steps taken by the Under Secretary to maximize recoupment of Federal
  Government funds incident to the inauguration and administration of the
  licensee program, and to ensure compliance with statutory and regulatory
  standards relating thereto.
  (3) An accounting by the Treasury Department with respect to tax revenues
  accruing to the Federal Government from business concerns receiving
  assistance under this subtitle.
  (4) An accounting by the Treasury Department with respect to both tax
  losses and increased tax revenues related to licensee financing of both
  individual and corporate business taxpayers.
  (5) Recommendations with respect to program changes, statutory changes,
  and other matters, including tax incentives to improve and facilitate
  the operations of licensees and to encourage the use of their financing
  facilities by qualified business concerns.
SEC. 359. TECHNICAL ASSISTANCE FOR LICENSEES AND QUALIFIED BUSINESS CONCERNS.
  (a) TECHNICAL ASSISTANCE- The Secretary shall provide technical assistance
  and services, as appropriate and needed, to licensees and to qualified
  business concerns receiving financial assistance under this subtitle,
  and shall ensure that such qualified business concerns have ready access
  to assistance available under title II of this Act, or under any other
  Act, in order to aid such qualified business concerns in their formation,
  development, growth, expansion, and modernization. Technical assistance
  and services under this subsection shall include providing licensees and
  qualified business concerns with--
  (1) an assessment of the technological and scientific feasibility of a
  project, or an analysis of a specific field of technical or scientific
  endeavor;
  (2) improved access to technology developed by the National Institute of
  Standards and Technology 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 concern, including associated market potential,
  technical and business risks, development requirements and costs, and
  valuation; 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 and business risk for licensees and qualifed 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 services and assistance. The Secretary may
  waive fees established under this subsection.
PART III--ENFORCEMENT
SEC. 361. 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 false statements allowingly made in any written statement required
  under this subtitle, or under any regulation issued under this subtitle
  by the Under Secretary;
  (2) if any written statement required under this subtitle, or under any
  regulation issued under this subtitle by the Under Secretary, fails to state
  a material fact necessary in order to make the statement not misleading
  in the light of the circumstances under which the statement was made;
  (3) for willful or repeated violation of, or willful or repeated failure
  to observe, any provision of this subtitle;
  (4) for willful or repeated violation of or willful or repeated failure
  to observe, any rule or regulation of the Under Secretary authorized by
  this subtitle; and
  (5) for violation of, or failure to observe, any cease and desist order
  issued by the Secretary under this section.
  (b) CEASE AND DESIST ORDERS- Where a licensee or any other person has not
  complied with any provision of this subtitle, or of any regulation issued
  pursuant thereto by the Under Secretary, or is engaging or is about to
  engage in any acts or practices which constitute or will constitute a
  violation of such subtitle or regulation, the Secretary may order such
  licensee or other person to cease and desist from such action or failure
  to act. The Secretary may further 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 the subtitle and the regulations. 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) PROCEDURES- Before revoking or suspending a license pursuant to
  subsection (a) or issuing a cease and desist order pursuant to subsection
  (b), the Secretary shall serve upon the licensee and any other person
  involved an order to show cause why an order revoking or suspending the
  license or a cease and desist order should not be issued. Any such order
  to show cause shall contain a statement of the matters of fact and law
  asserted by the Secretary and the legal authority and jurisdiction under
  which a hearing is to be held, and shall set forth that a hearing will be
  held before the Secretary at a time and place stated in the order. If after
  hearing, or a waiver thereof, the Secretary determines on the record that
  an order revoking or suspending the license or a cease and desist order
  should issue, the Secretary shall promptly issue such order, which shall
  include a statement of the findings of the Secretary and the grounds and
  reasons therefor and specify the effective date of the order, and shall
  cause the order to be served on the licensee and any other person involved.
  (d) SUBPOENAS- The Secretary may require by subpoenas 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. Witnesses
  summoned before the Secretary shall be paid by the party at whose instance
  they were called the same fees and mileage that are paid witnesses in the
  courts of the United States. In case of disobedience to a subpoena, the
  Secretary, or any party to a proceeding before the Secretary, may invoke
  the aid of any court of the United States in requiring the attendance and
  testimony of witnesses and the production of books, papers, and documents.
  (e) JUDICIAL REVIEW- An order issued by the Secretary under this section
  shall be final and conclusive unless within 30 days after the service
  thereof the licensee, or other person against whom an order is issued,
  appeals to the United States court of appeals for the circuit in which
  such licensee has its principal place of business by filing with the clerk
  of such court a petition praying that the Secretary's order be set aside
  or modified in the manner stated in the petition. After the expiration of
  such 30 days, a petition may be filed only by leave of court on a showing
  of reasonable grounds for failure to file the petition theretofore. The
  clerk of the court shall immediately cause a copy of the petition to be
  delivered to the Secretary, and the Secretary shall thereupon certify
  and file in the court a transcript of the record upon which the order
  complained of was entered. If before such record is filed the Secretary
  amends or sets aside its order, in whole or in part, the petitioner may
  amend the petition within such time as the court may determine, on notice
  to the Secretary. The filing of a petition for review shall not of itself
  stay or suspend the operation of the order of the Secretary, but the court
  of appeals in its discretion may restrain or suspend, in whole or in part,
  the operation of the order pending the final hearing and determination of
  the petition. The court may affirm, modify, or set aside the order of the
  Secretary. If the court determines that the just and proper disposition
  of the case requires the taking of additional evidence, the court shall
  order the Secretary to reopen the hearing for the taking of such evidence,
  in such manner and upon such terms and conditions as the court may deem
  proper. The Secretary may modify its findings as to the facts, or make new
  findings, by reason of the additional evidence so taken, and it shall file
  its modified or new findings and the amendments, if any, of its order,
  with the record of such additional evidence. No objection to an order of
  the Secretary shall be considered by the court unless such objection was
  urged before the Secretary or, if it was not so urged, unless there were
  reasonable grounds for failure to do so. The judgment and decree of the
  court affirming, modifying, or setting aside any such order of the Secretary
  shall be subject only to review by the Supreme Court of the United States
  upon certification or certiorari as provided in section 1254 of title 28,
  United States Code.
  (f) 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 United States court of appeals, within
  the circuit where the licensee has its principal place of business, for
  the enforcement of the order and shall file a transcript of the record
  upon which the order complained of was entered. Upon the filing of the
  application the court shall cause notice thereof to be served on the
  licensee or other person. The evidence to be considered, the procedure
  to be followed, and the jurisdiction of the court shall be the same as is
  provided in subsection (e) for applications to set aside or modify orders.
SEC. 362. 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 information, including companies financed, disbursements made
  along with associated terms and conditions, receipts, portfolio valuation
  at cost and at estimated market value, and other financial statements,
  that the Under Secretary may require to determine, in a timely manner,
  compliance with this subtitle and regulations promulgated under this
  subtitle. Such reporting shall be--
  (1) uniform for all licensees; and
  (2) independently audited, at the expense of a licensee, to conform with
  generally accepted accounting principles and submitted to the Under Secretary
  no later than 60 days after the end of a licensee's fiscal year, with interim
  unaudited financial statements provided to the Under Secretary no later than
  45 days after the end of each 3 month period during a licensee's fiscal year.
The Under Secretary may exempt from making such reports any licensee which
is registered under the Investment Company Act of 1940 only to the extent
necessary to avoid duplication in reporting requirements.
  (b) VALUATIONS- The Under Secretary shall, by regulation, establish
  guidelines for estimating the market value of investments held by a licensee
  as required under subsection (a).
  (c) INVESTIGATIONS- The Secretary may make such investigations as
  the Secretary deems necessary 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 or regulation under this subtitle or any order
  issued under this subtitle. The Secretary shall permit 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 investigated. For the purpose of any investigation, the Secretary
  is empowered to administer oaths and affirmations, subpoena witnesses,
  compel their attendance, take evidence, and require the production of
  any books, papers, and documents which are relevant to the inquiry. Such
  attendance of witnesses and the production of any such records may be
  required from any place in the United States. In case of contumacy by,
  or refusal to obey a subpoena issued to, any person, including a licensee,
  the Secretary may invoke the aid of any court of the United States within
  the jurisdiction of which such investigation or proceeding is carried on,
  or where such person resides or carries on business, in requiring the
  attendance and testimony of witnesses and the production of books, papers,
  and documents; and such court may issue an order requiring such person
  to appear before the Secretary, there to produce records, if so ordered,
  or to give testimony touching the matter under investigation. Any failure
  to obey such order of the court may be punished by such court as a contempt
  thereof. All process in any such case may be served in the judicial district
  whereof such person is an inhabitant or wherever he may be found.
  (d) EXAMINATIONS- (1) Each licensee shall be subject to examinations made
  at the direction of the Under Secretary by examiners selected or approved
  by, and under the supervision of, the Under Secretary. The Under Secretary
  is authorized to 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.
  (2) Each licensee shall be examined at least every 2 years in such detail
  so as to determine whether or not--
  (A) it has engaged solely in lawful activities and those contemplated by
  this subtitle;
  (B) it has engaged in prohibited conflicts of interest;
  (C) it has acquired or exercised illegal control of an assisted qualified
  business concern;
  (D) it has invested more than 20 percent of its capital in any individual
  qualified business concern;
  (E) it has engaged in relending, foreign investments, or passive
  investments; or
  (F) it has charged an interest rate in excess of the maximum permitted
  by law.
  (3) The Under Secretary may waive the examination--
  (A) for up to one additional year if, in his discretion he determines
  such a delay would be appropriate, based upon the amount of debentures and
  preferred securities being issued by the licensee and its repayment record,
  the prior operating experience of the licensee, the contents and results
  of the last examination and the management expertise of the licensee; or
  (B) if it is a licensee whose operations have been suspended while the
  licensee is involved in litigation or is in receivership.
SEC. 363. INJUNCTIONS AND OTHER ORDERS.
  (a) IN GENERAL- Whenever, in the judgment of the Secretary, 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 or regulation under this subtitle, or of any order
  issued under this subtitle, the Secretary may make application to the proper
  district court of the United States or a United States court of any place
  subject to the jurisdiction of the United States for an order enjoining such
  acts or practices, or for an order enforcing compliance with such provision,
  rule, regulation, or order, and such courts shall have jurisdiction of such
  actions and, upon a showing by the Secretary that such licensee or other
  person has engaged or is about to engage in any such acts or practices,
  a permanent or temporary injunction shall be granted without bond.
  (b) EQUITY JURISDICTION- In any such proceeding the court as a court of
  equity may, to such extent as it deems necessary, take exclusive jurisdiction
  of the licensee or licensees and the assets thereof, wherever located;
  and the court shall have jurisdiction in any such proceeding to appoint
  a trustee or receiver to hold or administer under the direction of the
  court the assets so possessed.
  (c) TRUSTEESHIP OR RECEIVERSHIP- The Under Secretary shall have authority to
  act as trustee or receiver of the licensee. Upon request by the Secretary,
  the court may appoint the Under Secretary to act in such capacity unless
  the court deems such appointment inequitable or otherwise inappropriate
  by reason of the special circumstances involved.
SEC. 364. 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 indirect, financial or otherwise, is held
  by any officer, director, shareholder, or partner of (1) any licensee, or
  (2) any person or concern with an interest, direct or indirect, financial
  or otherwise, in any licensee. Such regulations shall include appropriate
  requirements for public disclosure (including disclosure in the locality
  most directly affected by the transaction) necessary to the purposes of
  this section.
SEC. 365. REMOVAL OR SUSPENSION OF DIRECTORS AND OFFICERS.
  (a) GROUNDS- The Secretary may serve upon any director or officer of
  a licensee a written notice of its intention to remove him from office
  whenever, in the opinion of the Secretary, such director of officer--
  (1) has willfully and knowingly committed any substantial violation of--
  (A) this subtitle;
  (B) any regulation issued under this subtitle; or
  (C) a cease-and-desist order which has become final; or
  (2) has willfully and knowingly committed or engaged in any act, omission,
  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.
  (b) TEMPORARY SUSPENSION- In respect to any director or officer referred
  to in subsection (a), the Secretary may, if he deems it necessary
  for the protection of the licensee or the interests of the Secretary,
  by written notice to such effect served upon such director or officer,
  suspend him from office and/or prohibit him from further participation in
  any manner in the conduct of the affairs of the licensee. Such suspension
  and/or prohibition shall become effective upon service of such notice and,
  unless stayed by a court in proceedings authorized by subsection (d), shall
  remain in effect pending the completion of the administrative proceedings
  pursuant to the notice served under subsection (a) and until such time
  as the Secretary shall dismiss the charges specified in such notice, or,
  if an order of removal and/or prohibition is issued against the director
  or officer, until the effective date of any such order. Copies of any such
  notice shall also be served upon the interested licensee.
  (c) HEARING; ORDER OF REMOVAL- A notice of intention to remove a director
  or officer, as provided in subsection (a), shall contain a statement of
  the facts constituting grounds therefor, and shall fix a time and place
  at which a hearing will be held thereon. Such hearing 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 person or by a
  duly authorized representative, he shall be deemed to have consented to
  the issuance of an order of such removal. In the event of such consent,
  or if upon the record made at any such hearing the Secretary shall find
  that any of the grounds specified in such notice has been established,
  the Secretary may issue such orders of removal from office as he deems
  appropriate. Any such order shall become effective at the expiration
  of 30 days after service upon such licensee and the director or officer
  concerned (except in the case of an order issued upon consent, which shall
  become effective at the time specified therein). Such order shall remain
  effective and enforceable except to such extent as it is stayed, modified,
  terminated, or set aside by section of the Secretary or a reviewing court.
  (d) STAY OF SUSPENSION OR PROHIBITION- Within 10 days after any director or
  officer has been suspended from office and/or prohibited from participation
  in the conduct of the affairs of a licensee under subsection (b), such
  director or officer may apply to the United States district court for the
  judicial district in which the home office of the licensee is located,
  or the United States District Court for the District of Columbia, for a
  stay of such suspension and/or prohibition pending the completion of the
  administrative proceedings pursuant to the notice served upon such director
  or officer under subsection (a), and such court shall have jurisdiction
  to stay such suspension and/or prohibition.
  (e) FELONIES INVOLVING DISHONESTY OR BREACH OF TRUST- Whenever any director
  or officer of a licensee is charged in any information, indictment, or
  complaint authorized by a United States attorney, with the commission of
  or participation in a felony involving dishonesty or breach of trust, the
  Secretary may, by written notice served upon such director or officer,
  suspend him from office and/or prohibit him from further participation
  in any manner in the conduct of the affairs of the licensee. A copy of
  such notice shall also be served upon the licensee. Such suspension and/or
  prohibition shall remain in effect until such information, indictment, or
  complaint is finally disposed of or until terminated by the Secretary. In
  the event that a judgment of conviction with respect to such offense is
  entered against such director or officer, and at such time as such judgment
  is not subject to further appellate review, the Secretary may issue and serve
  upon such director or officer an order removing him from office. A copy of
  such order shall be served upon such licensee, whereupon such director or
  officer shall cease to be a director or officer of such licensee. A finding
  of not guilty or other disposition of the charge shall not preclude the
  Secretary from thereafter instituting proceedings to suspend or remove
  such director or officer from office and/or to prohibit him from further
  participation in licensee affairs, pursuant to subsection (a) or (b).
  (f) HEARINGS AND REVIEW- (1) Any hearing provided for in this section shall
  be held in the Federal judicial district or in the territory in which the
  principal office of the licensee is located unless the party afforded the
  hearing consents to another place, and shall be conducted in accordance with
  the provisions of chapter 5 of title 5 of the United States Code. After such
  hearing, and within 90 days after the Secretary has notified the parties
  that the case has been submitted to it for final decision, the Secretary
  shall render a decision (which shall include findings of fact upon which his
  decision is predicated) and shall issue and cause to be served upon each
  party to the proceeding an order or orders consistent with the provisions
  of this section. Judicial review of any such order shall be exclusively as
  provided in this subsection. Unless a petition for review is timely filed
  in a court of appeals of the United States, as provided in paragraph (2)
  of this subsection, and thereafter until the record in the proceeding has
  been filed as so provided, the Secretary may at any time, upon such notice,
  and in such manner as he shall deem proper, modify, terminate, or set aside
  any such order. Upon such filing of the record, the Secretary may modify,
  terminate, or set aside any such order with permission of the court.
  (2) Any party to such proceeding may obtain a review of any order served
  pursuant to paragraph (1) of this subsection (other than an order issued
  with the consent of the director or officer concerned, or an order issued
  under subsection (e) of this section), by filing in the court of appeals
  of the United States for the circuit in which the principal office of
  the licensee is located, or in the United States Court of Appeals for the
  District of Columbia Circuit, within 30 days after the date of service of
  such order, a written petition praying that the order of the Secretary
  be modified, terminated, or set aside. A copy of such petition shall
  be forthwith transmitted by the clerk of the court to the Secretary,
  and thereupon the Secretary shall file in the court the record in the
  proceeding, as provided in section 2112 of title 28 of the United States
  Code. Upon the filing of such petition, such court shall have jurisdiction,
  which upon the filing of the record shall, except as provided in the last
  sentence of such paragraph (1), be exclusive, to affirm, modify, terminate,
  or set aside, in whole or in part, the order of the Secretary. Review of
  such proceedings shall be had as provided in chapter 7 of title 5 of the
  United States Code. The judgment and decree of the court shall be final,
  except that the same shall be subject to review by the Supreme Court upon
  certiorari as provided in section 1254 of title 28 of the United States Code.
  (3) The commencement of proceedings for judicial review under paragraph
  (2) of this subsection shall not, unless specifically ordered by the court,
  operate as a stay of any order issued by the Secretary.
SEC. 366. UNLAWFUL ACTS.
  (a) PARTICIPATION- Wherever a licensee violates any provision of this
  subtitle or regulation issued thereunder by reason of its failure to comply
  with the terms thereof or by reason of its engaging in any act or practice
  which constitutes or will constitute a violation thereof, such violation
  shall be deemed to be also a violation and an unlawful act 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
  any acts, practices, or transactions which constitute or will constitute,
  in whole or in part, such violation.
  (b) BREACH OF FIDUCIARY DUTY- It shall be unlawful 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 consent of the Secretary,
  it shall be unlawful--
  (1) for any person hereafter to take office as an officer, director,
  or employee of a licensee, or to become an agent or participant in the
  conduct of the affairs or management of a licensee, if such person--
  (A) has been convicted of a felony, or any other criminal offense involving
  dishonesty or breach of trust; or
  (B) 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 jurisdiction, by reason of any act or practice involving fraud
  or breach of trust; and
  (2) for any person to continue to serve in any of the above-described
  capacities if such person--
  (A) is hereafter convicted of a felony, or any other criminal offense
  involving dishonesty or breach of trust; or
  (B) is hereafter found civilly liable in damages, or is permanently
  or temporarily enjoined by an order, judgment, or decree of a court of
  competent jurisdiction, by reason of any act or practice involving fraud
  or breach of trust.
SEC. 367. PENALTIES AND FORFEITURES.
  (a) CIVIL PENALTY- Except as provided in subsection (b) of this section,
  a licensee which violates any regulation or written directive issued by the
  Secretary or the Under Secretary shall forfeit and pay to the United States
  a civil penalty of not more than $1,000 for each day of the continuance
  of the licensee's failure to file a report required under section 362(a),
  unless it is shown that such failure is due to reasonable cause and not
  due to willful neglect. The civil penalties provided for in this section
  shall accrue to the United States and may be recovered in a civil action
  brought by the Secretary.
  (b) EXEMPTIONS- The Secretary may by rules and regulations, or upon
  application of an interested party, at any time previous to such failure,
  by order, after notice and opportunity for hearing, exempt in whole or in
  part, any licensee from the provisions of subsection (a) of this section,
  upon such terms and conditions and for such period of time as the Secretary
  deems necessary and appropriate, if the Secretary finds that such action
  is not inconsistent with the public interest or the protection of the
  Department. The Secretary may for the purposes of this section make any
  alternative requirements appropriate to the situation.
SEC. 368. JURISDICTION AND SERVICE OF PROCESS.
  Any suit or action brought under section 357, 361, 363, 365, or 367 by the
  Secretary at law or in equity to enforce any liability or duty created by,
  or to enjoin any violation of, this subtitle, or any rule, regulation,
  or order promulgated thereunder, shall be brought in the district wherein
  the licensee maintains its principal office, and process in such cases may
  be served in any district in which the defendant maintains its principal
  office or transacts business, or wherever the defendant may be found.
SEC. 369. ANTITRUST SAVINGS CLAUSE.
  This subtitle shall not be construed to modify, impair, or supersede
  the operation of the antitrust laws. For purposes 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.
PART IV--MISCELLANEOUS
SEC. 371. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
  (a) AUTHORITY TO ISSUE TRUST CERTIFICATES- The Under Secretary is authorized
  to issue trust certificates representing ownership of all or a fractional
  part of preferred securities issued by licensees and purchased by the Under
  Secretary under this subtitle. Such trust certificates shall be based on
  and backed by a trust or pool approved by the Under Secretary and composed
  of preferred securities and such other contractual obligations as the Under
  Secretary may undertake to facilitate the sale of such trust certificates.
  (b) GUARANTEE OF TRUST CERTIFICATES- The Under Secretary is authorized, upon
  such terms and conditions as are deemed appropriate, to guarantee the timely
  payment of the principal of and interest on trust certificates issued by the
  Under Secretary or his agent for purposes of this section. Such guarantee
  shall be limited to the extent of the redemption price of and dividends
  on the preferred securities, plus any related contractual obligations,
  which compose the trust or pool. The full faith and credit of the United
  States is pledged to the payment of all amounts which may be required to
  be paid under any guarantee of such trust certificates issued by the Under
  Secretary or his agent pursuant to this section.
  (c) PREPAYMENTS AND REDEMPTIONS- In the event that preferred securities or
  contractual obligations in such trust or pool are redeemed or extinguished,
  either voluntarily or involuntarily, the guarantee of timely payment
  of principal and interest on the trust certificates shall be reduced in
  proportion to the amount of principal and interest such redeemed preferred
  security or extinguished contractual obligation represents in the trust
  or pool. Dividends or partnership profit distributions on such preferred
  securities and related contractual obligations, shall accrue and be
  guaranteed by the Under Secretary only through the date of payment on the
  guarantee. During the term of the trust certificate, it may be called for
  redemption, whether voluntary or involuntary, of all preferred securities
  residing in the pool.
  (d) FEES- The Under Secretary may collect a fee for a guarantee under this
  section only in conjunction with the guarantee of trust certificates backed
  by a trust or pool composed of preferred securities purchased pursuant
  to section 353 of this Act. Nothing in this subsection shall preclude any
  agent of the Under Secretary from collecting a fee approved by the Under
  Secretary for the functions described in subsection (f)(2) of this section.
  (e) PAYMENT OF CLAIMS- (1) In the event the Under Secretary pays a claim
  under a guarantee issued under this section, it shall be subrogated fully
  to the rights satisfied by such payment.
  (2) No State or local law, and no Federal law, shall preclude or limit
  the exercise by the Under Secretary of ownership rights in the preferred
  securities residing in a trust or pool against which trust certificates
  are issued.
  (f) REGISTRATION AND INTERMEDIARY OPERATIONS- (1) The Under Secretary
  shall provide for a central registration of all trust certificates sold
  pursuant to this section. Such central registration shall include with
  respect to each sale, identification of each licensee, the interest rate
  or dividend rate paid by the licensee, commissions, fees, or discounts
  paid to brokers and dealers in trust certificates, identification of each
  purchaser of the trust certificate, the price paid by the purchaser for
  the trust certificate, the interest rate paid on the trust certificate,
  the fees of any agent for carrying out the functions described in paragraph
  (2), and such other information as the Under Secretary deems appropriate.
  (2) The Under Secretary shall contract with an agent or agents to carry out
  on behalf of the Under Secretary the pooling and the central registration
  functions of this section including, notwithstanding any other provision of
  law, maintenance on behalf of and under the direction of the Under Secretary,
  such commercial bank accounts as may be necessary to facilitate trusts or
  pools backed by securities guaranteed or purchased under this subtitle,
  and the issuance of trust certificates to facilitate such poolings. Such
  agent or agents shall provide a fidelity bond or insurance in such amounts
  as the Under Secretary determines to be necessary to fully protect the
  interests of the Federal Government.
  (3) Prior to any sale, the Under Secretary shall require the seller to
  disclose to a purchaser of a trust certificate issued pursuant to this
  section, information on the terms, conditions, and yield of such instrument.
SEC. 372. AUTHORIZATION OF APPROPRIATIONS.
  There are authorized to be appropriated $100,000,000 for the period
  encompassing fiscal years 1994 and 1995 for carrying out this subtitle,
  to remain available for expenditure through September 30, 1996.
TITLE IV--INTERNATIONAL STANDARDIZATION
SEC. 401. FINDINGS.
  The Congress finds that--
  (1) private sector consensus standards are essential to the timely
  development of competitive products; and
  (2) Federal Government contribution of resources, and assistance through
  government to government negotiations, can increase the quality of United
  States standards, increase their compatibility with international standards,
  and ease access of United States-made products to foreign markets.
SEC. 402. STANDARDS PILOT PROGRAM.
  Section 104(e) of the American Technology Preeminence Act of 1991 is
  amended--
  (1) by inserting `(1)' before `Pursuant to the'; and
  (2) by adding at the end the following new paragraphs:
  `(2) As necessary and appropriate, the Institute shall expand the program
  established under section 112 of the National Institute of Standards and
  Technology Authorization Act for Fiscal Year 1989 (15 U.S.C. 272 note) by
  extending the existing program and by entering into additional contracts
  with non-Federal organizations representing United States companies, as
  such term is defined in section 28(d)(9)(B) of the National Institute of
  Standards and Technology Act (15 U.S.C. 278n(d)(9)(B)). Such contracts
  shall require cost sharing between Federal and non-Federal sources for
  such purposes. In awarding such contracts, the Institute shall seek to
  promote and support the dissemination of United States technical standards
  to additional foreign countries, in cooperation with governmental bodies,
  private organizations including standards setting organizations and industry,
  and multinational institutions that promote economic development. The
  organizations receiving such contracts may establish training programs to
  bring to the United States foreign standards experts for the purpose of
  receiving in-depth training in the United States standards system.
  `(3) There are authorized to be appropriated to the Director $5,000,000
  for fiscal year 1994 for carrying out this subsection.'.
SEC. 403. REPORT ON GLOBAL STANDARDS.
  The Secretary of Commerce, in consultation with the National Institute
  of Standards and Technology and the Advisory Board established under
  section 301(b) of the Stevenson-Wydler Technology Innovation Act of 1980,
  shall submit to the Congress a report describing the appropriate roles
  of the Federal Government in aid to United States companies in achieving
  conformity assessment and otherwise qualifying their products in foreign
  markets, and in the development and promulgation of domestic and global
  product and quality standards, including a discussion of the extent to
  which each of the policy options provided in such Office of Technology
  Assessment report contributes to meeting the goals of--
  (1) increasing the international adoption of standards beneficial to United
  States industries; and
  (2) improving the coordination of United States representation to
  international standards setting bodies.
TITLE V--MISCELLANEOUS PROVISIONS
SEC. 501. TECHNOLOGY ADMINISTRATION.
  (a) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the Secretary, to carry out the activities of the Under Secretary
  of Commerce for Technology and the Assistant Secretary of Commerce for
  Technology Policy, for fiscal year 1994--
  (1) for the Office of the Under Secretary, $3,000,000;
  (2) for Technology Policy, $5,000,000; and
  (3) for Japanese Technical Literature, $2,000,000.
  (b) TRANSFERS- (1) Funds may be transferred among the line items listed
  in subsection (a), so long as--
  (A) the net funds transferred to or from any line item do not exceed 10
  percent of the amount authorized for that line item in such subsection;
  (B) the aggregate amount authorized under subsection (a) is not changed; and
  (C) the Committee on Commerce, Science, and Transportation of the Senate
  and the Committee on Science, Space, and Technology of the House of
  Representatives are notified in advance of any such transfer.
  (2) The Secretary may propose transfers to or from any line item listed
  in subsection (a) exceeding 10 percent of the amount authorized for such
  line item, but such proposed transfer may not be made unless--
  (A) a full and complete explanation of any such proposed transfer and the
  reason therefor are transmitted in writing to the Speaker of the House
  of Representatives, the President of the Senate, and the appropriate
  authorizing Committees of the House of Representatives and the Senate; and
  (B) 30 days have passed following the transmission of such written
  explanation.
  (c) NATIONAL TECHNICAL INFORMATION SERVICE FACILITIES STUDY- As part
  of its modernization effort and before signing a new facility lease,
  the National Technical Information Service, in consultation with the
  General Services Administration, shall study and report to Congress on the
  feasibility of accomplishing all or part of its modernization by signing
  a long-term lease with an organization that agrees to supply a facility
  and supply and periodically upgrade modern equipment which permits the
  National Technical Information Service to receive, store, manipulate,
  and print electronically created documents and reports and to carry out
  the other functions assigned to the National Technical Information Service.
SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.
  (a) AUTHORIZATION OF APPROPRIATIONS- (1) There are authorized to be
  appropriated to the Secretary, to carry out the intramural scientific  and
  technical research and services activities of the Institute, $267,500,000
  for fiscal year 1994.
  (2) Of the amount authorized under paragraph (1), $1,000,000 are authorized
  only for the evaluation of nonenergy-related inventions and related
  technology extension activities and $9,000,000 are authorized only for
  the technical competence fund.
  (b) ADDITIONAL AUTHORIZATION- In addition to the amounts authorized under
  subsection (a), there are authorized to be appropriated to the Secretary
  for fiscal year 1994 $25,000,000 for the renovation and upgrading of the
  Institute's facilities. The Institute may enter into a contract for the
  design work for such purposes only if Federal Government payments under the
  contract are limited to amounts provided in advance in appropriations Acts.
  (c) STATE TECHNOLOGY EXTENSION PROGRAM- In addition to the amounts authorized
  under subsections (a) and (b), there are authorized to be appropriated
  to the Secretary for fiscal year 1994 $2,500,000 to carry out the State
  Technology Extension Program established under section 26 of the National
  Institute of Standards and Technology Act (15 U.S.C. 278l).
  (d) TECHNICAL AMENDMENTS- The American Technology Preeminence Act of 1991
  is amended--
  (1) in section 104(b)(1)(F), by striking `$12,000,000' and inserting in
  lieu thereof `$12,200,000';
  (2) in section 104(b)(1)(H), by striking `$6,300,000' and inserting in
  lieu thereof `$6,800,000';
  (3) in section 104(b)(2)(B)--
  (A) by inserting `and' at the end of clause (i);
  (B) by striking `; and' from the end of clause (ii) and inserting in lieu
  thereof a period; and
  (C) by striking clause (iii);
  (4) in section 105(b), by adding after paragraph (3) the following:
`Of the amounts authorized under this subsection, $5,000,000 are authorized
only for the Institute's management of the programs described in paragraphs
(1) through (3).'; and
  (5) in section 201(d), by inserting `, except in the case of the amendment
  made by subsection (c)(6)(A)' after `enactment of this Act'.
SEC. 503. AVAILABILITY OF APPROPRIATIONS.
  Appropriations made under the authority provided in this title shall
  remain available for obligation, for expenditure, or for obligation and
  expenditure for periods specified in the Acts making such appropriations.
SEC. 504. USE OF DOMESTIC PRODUCTS.
  (a) PROHIBITION AGAINST FRAUDULENT USE OF `MADE IN AMERICA' LABELS- (1) A
  person shall not intentionally affix a label bearing the inscription of `Made
  in America', or any inscription with that meaning, to any product sold in
  or shipped to the United States, if that product is not a domestic product.
  (2) A person who violates paragraph (1) shall not be eligible for any
  contract for a procurement carried out with amounts authorized under this
  title and the amendments made by this title, including any subcontract under
  such a contract pursuant to the debarment, suspension, and ineligibility
  procedures in subpart 9.4 of chapter 1 of title 48, Code of Federal
  Regulations, or any successor procedures thereto.
  (b) COMPLIANCE WITH BUY AMERICAN ACT- (1) Except as provided in paragraph
  (2), the head of each agency which conducts procurements shall ensure that
  such procurements are conducted in compliance with sections 2 through 4 of
  the Act of March 3, 1933 (41 U.S.C. 10a through 10c, popularly known as the
  `Buy American Act').
  (2) This subsection shall apply only to procurements made for which--
  (A) amounts are authorized by this title, and the amendments made by this
  title, to be made available; and
  (B) solicitations for bids are issued after the date of enactment of
  this Act.
  (3) The Secretary, before January 1, 1994, shall report to the Congress
  on procurements covered under this subsection of products that are not
  domestic products.
  (c) DEFINITIONS- For the purposes of this section, the term `domestic
  product' means a product--
  (1) that is manufactured or produced in the United States; and
  (2) at least 50 percent of the cost of the articles, materials, or supplies
  of which are mined, produced, or manufactured in the United States.
SEC. 505. MALCOLM BALDRIGE AWARD AMENDMENTS.
  (a) Section 108(c)(3) of the Stevenson-Wydler Technology Innovation Act
  of 1980, as so redesignated by section 204(b)(4) of this Act, is amended
  to read as follows:
  `(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 Technology Innovation
  Act of 1980 (15 U.S.C. 3711a(c)(1)) 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
  of Commerce 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; and
  (iii) a plan for funding awards described in clause (i).
  (B) In preparing the report required under subparagraph (A), the Secretary
  of Commerce shall consult with the National Science Foundation and other
  public and private entities with appropriate expertise, and shall provide
  for public notice and comment.
  (C) The Secretary of Commerce shall not accept applications for awards
  described in subparagraph (A)(i) until after the report required under
  subparagraph (A) is submitted to the Congress.
SEC. 506. DEFINITIONS.
  For purposes of this title--
  (1) the term `Institute' means the National Institute of Standards and
  Technology; and
  (2) the term `Secretary' means the Secretary of Commerce.
SEC. 507. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.
  Section 202(d)(1) of the Stevenson-Wydler Technology Innovation Act of 1980
  (15 U.S.C. 3710a(d)(1)), as redesignated by section 204(b)(6) of this Act,
  is amended by inserting `(including both real and personal property)'
  after `or other resources' both places it appears.
SEC. 508. SENSE OF THE CONGRESS.
  It is the Sense of the Congress that amounts necessary for carrying out
  this Act can be accounted for by corresponding reductions in Department
  of Defense research and development spending, and that additional taxes
  will not be required for those purposes.
  It is the sense of the Congress that the programs authorized by this
  Act are not in and of themselves sufficient to fully address the root
  causes of the competitiveness problems facing United States commerce and
  manufacturing. Further, it is the sense of the Congress that there exist
  fundamental competitiveness disadvantages imposed by Government fiscal and
  regulatory policies on American business, and that the Federal Government
  can stimulate economic growth and private sector job creation by reducing
  the national debt to lower the cost and increase the availability of
  capital, by reforming education and training programs to provide a highly
  skilled workforce, by achieving parity in trade policy, by providing tax
  incentives to further enhance private capital formation, by removing
  statutory barriers to procompetitive manufacturing, by reforming and
  broadening health care, by reexamining issues of court procedures and
  litigation, and by reexamining those provisions of law and regulation
  which are anticompetitive in nature. Finally, it is the sense of the
  Congress that each of the committees of the Congress having appropriate
  jurisdiction should recommend legislation implementing these reforms and
  that such legislation should be enacted promptly.
TITLE VI--COMPETITIVENESS RESEARCH, DATA COLLECTION, AND EVALUATION
SEC. 601. FINDINGS.
  The Congress finds that--
  (1) Federal programs to enhance competitiveness should yield a greater
  return on investment than would the investment of comparable funds by the
  private sector;
  (2) policies and programs designed to promote technology development,
  trade competitiveness, and economic growth must be responsive to the
  global marketplace, and to changes in our understanding of the process of
  innovation; and
  (3) as policies and programs are established with the primary goal of
  enhancing competitiveness, policy research and criteria for controlled,
  systemic evaluation are needed to ensure attainment of the objectives of
  those policies and programs.
SEC. 602. RESEARCH.
  (a) IN GENERAL- The Secretary of Commerce (in this title referred to as
  the `Secretary') shall provide for the conduct of research to advance
  our understanding of competitiveness and the ways in which the economic
  competitiveness of United States industry can be enhanced through the
  appropriate use of Federal assistance including programs, such as those
  established or expanded under this Act, to promote innovation and development
  of new technologies. As part of this research program, the Secretary shall--
  (1) develop and test criteria and methodologies for evaluating the extent
  to which programs established or expanded under this Act enhance United
  States competitiveness more effectively than would competing uses for
  comparable funding in the private sector;
  (2) encourage such programs to clearly define their goals and establish
  measurable objectives; and
  (3) develop data analysis techniques for evaluating the performance of
  such programs.
  (b) EXECUTION OF PROGRAM- Research under this section shall be carried
  out primarily through grants and contracts for peer reviewed research
  by academics, private research groups, or consortia thereof. Grants and
  contracts under this section may be made in support of the preparation of
  articles or reports summarizing and reviewing research on competitiveness.
  (c) CONFERENCE- The Secretary shall sponsor an annual conference, the
  first to be held before October 1, 1994, at which the results of research
  carried out under this section shall be presented and recommendations
  shall be formulated for the establishment of criteria and methodologies
  with which to evaluate government competitiveness programs.
  (d) DISSEMINATION- The results of research carried out under this section
  shall, to the extent practicable, be published in scholarly, trade, and
  popular literature, and disseminated through conferences or otherwise.
SEC. 603. DATA COLLECTION.
  (a) DATA COLLECTION FUNCTION- Programs established or expanded under this
  Act shall be designed to incorporate the data collection function necessary
  for carrying out this title.
  (b) COOPERATION OF OTHER AGENCIES- The heads of other Federal agencies
  shall cooperate with the Secretary in the collection of data required to
  carry out this section.
SEC. 604. EVALUATION.
  (a) INDEPENDENT EVALUATION- The Secretary shall arrange for an independent
  evaluation of the effectiveness of programs established or expanded
  under this Act in improving United States competitiveness, using criteria
  developed under section 602(a)(1).
  (b) ADDITIONAL EVALUATIONS- The Secretary may, on request, conduct similar
  evaluations of programs other than those described in subsection (a).
SEC. 605. COMPETITIVENESS POLICY COUNCIL ADVICE.
  In carrying out this title, the Secretary shall solicit and consider advice
  from the Competitiveness Policy Council established under section 5203 of
  the Competitiveness Policy Council Act (Public Law 100-418) and from the
  Council on Technology and Competitiveness established under section 311.
SEC. 606. AUTHORIZATION OF APPROPRIATIONS.
  There are authorized to be appropriated to the Secretary $1,000,000 for
  the period encompassing fiscal years 1994 and 1995.
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HR 5231 RH----5
HR 5231 RH----6
HR 5231 RH----7
HR 5231 RH----8