[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 419 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 419

To provide for enhanced cooperation between the Federal Government and 
    the United States commercial aircraft industry in aeronautical 
technology research, development, and commercialization, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 24 (legislative day, January 5), 1993

Mr. Danforth (for himself, Mr. Rockefeller, Mr. Gorton, Mr. Lieberman, 
Mr. Baucus, Mr. Bond, Mr. Dodd, Mrs. Murray, and Mr. Riegle) introduced 
the following bill; which was read twice and referred to the Committee 
                on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To provide for enhanced cooperation between the Federal Government and 
    the United States commercial aircraft industry in aeronautical 
technology research, development, and commercialization, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Aeronautical Technology Consortium 
Act of 1993''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) a strong commercial aircraft industry is critical to 
        the health of the United States economy: aircraft production in 
        the United States affects nearly 80 percent of the economy, and 
        for every additional dollar of shipments of aircraft, output of 
        the economy increases by an estimated $2.30;
            (2) a strong commercial aircraft industry is critical to 
        the national security of the United States because of the 
        synergies between commercial and military aeronautical 
        technologies and the need for a strong advanced technology 
        industrial base;
            (3) the National Critical Technologies Panel has identified 
        aeronautics as one of twenty-two categories of technologies 
        critical to the national economic prosperity and to national 
        security;
            (4) while the United States has traditionally dominated the 
        world commercial aircraft market, the United States aircraft 
        industry is facing two critical challenges: significant 
        cutbacks in defense procurement and related military spending, 
        and the growing competitive strength of the European aircraft 
        consortium, Airbus Industrie;
            (5) Airbus Industrie, a consortium of four European 
        aircraft manufacturing companies that have received almost 
        $26,000,000,000 in government subsidies over two decades, has 
        developed a family of competitive aircraft models and has 
        captured one-fourth of the world market for large civil 
        aircraft;
            (6) in 1992, the United States signed an agreement with the 
        European Community that permits the European governments to 
        continue to subsidize up to 33 per centum of the development 
        costs of new large civil aircraft;
            (7) given current and expected reductions in defense 
        spending and increased competitive pressures in the commercial 
        aircraft market, it is critical for the Federal Government to 
        coordinate its aeronautics and related programs and redirect 
        these resources to assist the United States commercial aircraft 
        industry to meet the competitive challenge from Airbus 
        Industrie;
            (8) the Federal Government has played an active role in 
        research and development of aeronautical technologies since the 
        National Advisory Committee on Aeronautics (NACA) was created 
        in 1915;
            (9) in recent years, however, Federal Government support 
        for aerospace research and development has focused 
        overwhelmingly on military and space technologies;
            (10) Federal programs relating to aeronautics research and 
        development today are spread among a number of different 
        agencies and departments, including the Departments of Defense, 
        Transportation, and Commerce, as well as the National 
        Aeronautics and Space Administration and the National Science 
        Foundation;
            (11) Federal financial assistance to the semiconductor 
        industry consortium known as Sematech has been successful in 
        improving the competitiveness of the United States 
        semiconductor industry;
            (12) the Federal Government should use Sematech as a model 
        in developing a program to provide financial assistance to an 
        industry-led consortium of United States commercial aircraft 
        manufacturing companies; and
            (13) such a government-industry consortium should focus its 
        efforts on research, development, and commercialization of new 
        aeronautical technologies and related manufacturing 
        technologies, as well as the transfer and conversion of 
        aeronautical technologies developed for national security 
        purposes to commercial applications for large civil aircraft.
    (b) Purpose.--The purpose of this Act is to strengthen and assist 
the United States commercial aircraft industry by--
            (1) providing for an interagency aeronautical technology 
        program to coordinate and expand Federal research and 
        development programs relating to aeronautical technologies and 
        related manufacturing technologies; and
            (2) assisting the United States commercial aircraft 
        industry in developing an Aeronautical Technology Consortium 
        for the purpose of providing Federal assistance to industry-led 
        joint ventures established for research, development, and 
        commercialization of aeronautical technologies and related 
        manufacturing technologies applicable to large civil aircraft.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
            (1) The term ``Director'' means the Director of the Office 
        of Science and Technology Policy.
            (2) The term ``eligible firm'' means a company or other 
        business entity that, as determined by the Secretary of 
        Commerce--
                    (A) conducts a significant level of its research, 
                development, engineering, and manufacturing activities 
                in the United States; and
                    (B) either--
                            (i) is a United States-owned company; or
                            (ii) is a company incorporated in the 
                        United States and has a parent company which is 
                        incorporated in a country the government of 
                        which--
                                    (I) affords United States-owned 
                                companies opportunities, comparable to 
                                those afforded any other company, to 
                                participate in research and development 
                                consortia to which the government of 
                                that country provides funding directly 
                                or provides funding indirectly through 
                                international organizations or 
                                agreements; and
                                    (II) affords adequate and effective 
                                protection for the intellectual 
                                property rights of United States-owned 
                                companies.
        Such term includes a consortium of such companies or other 
        business entities, as determined by the Secretary of Commerce.
            (3) The term ``Federal laboratory'' has the meaning given 
        such term in section 4(6) of the Stevenson-Wydler Technology 
        Innovation Act of 1980 (15 U.S.C. 3703(6)).
            (4) The term ``joint venture'' has the meaning given such 
        term in section 28(j)(1) of the National Institute of Standards 
        and Technology Act (15 U.S.C. 278n(j)(1)).
            (5) The term ``large civil aircraft'' means all aircraft 
        that are designed for passenger or cargo transportation and 
        have one hundred or more passenger seats or its equivalent in 
        cargo configuration.
            (6) The term ``manufacturing technology'' means 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, 
        design for recyclability or parts reuse, shop floor management, 
        inventory management, worker training, and communications with 
        customers and suppliers, as well as manufacturing equipment and 
        software.
            (7) The term ``United States-owned company'' means a 
        company or other business entity the majority ownership or 
        control of which is by United States citizens.

SEC. 4. AERONAUTICAL TECHNOLOGY PROGRAM.

    (a) Establishment.--The President shall establish an Aeronautical 
Technology Program (hereafter in this Act referred to as the 
``Program''), which shall--
            (1) provide for interagency coordination of Federal 
        research and development programs relating to aeronautical 
        technologies and related manufacturing technologies;
            (2) provide a mechanism for private industry comment and 
        guidance regarding the cost-effectiveness and commercial 
        practicability of existing and proposed Federal research and 
        development programs relating to aeronautical technologies and 
        related manufacturing technologies;
            (3) promote, to the maximum extent practicable, the 
        transfer and conversion to commercial applications of 
        aeronautical technologies developed for national security 
        purposes;
            (4) coordinate and expand existing Federal research and 
        development programs relating to--
                    (A) subsonic aeronautics, and
                    (B) supersonic aeronautics,
        with particular focus on government-industry cooperative 
        programs to develop large civil aircraft beyond the financial 
        means of any single company;
            (5) assist the United States commercial aircraft industry 
        in developing an Aeronautical Technology Consortium for the 
        purpose of providing Federal assistance to industry-led joint 
        ventures established for research, development, and 
        commercialization of aeronautical technologies and related 
        manufacturing technologies applicable to large civil aircraft; 
        and
            (6) establish other goals and priorities for Federal 
        research and development programs relating to aeronautical 
        technologies and related manufacturing technologies.
    (b) National Aeronautics Strategy.--
            (1) In general.--The President, acting through the 
        Coordinating Committee established in subsection (c), shall 
        develop a National Aeronautics Strategy (hereafter in this Act 
        referred to as the ``Strategy'') to implement the Program. The 
        Strategy shall contain specific recommendations for a five-year 
        national effort, to be submitted to the Congress within six 
        months after the date of enactment of this Act.
            (2) Contents of strategy.--The Strategy shall--
                    (A) establish the specific goals and priorities for 
                the Program for the fiscal year in which the Strategy 
                is submitted and the succeeding four fiscal years;
                    (B) set forth the role of each Federal agency and 
                department in implementing the Program;
                    (C) describe the levels of Federal funding for each 
                agency and specific research, development, and 
                commercialization activities required to achieve such 
                goals and priorities;
                    (D) take into account the recommendations of the 
                Advisory Committee established in section 6; and
                    (E) consider and use, as appropriate, reports and 
                studies conducted by Federal agencies and departments, 
                the National Research Council, or other entities.
            (3) Federal agencies and departments to be addressed.--The 
        Strategy shall address, where appropriate, the relevant 
        programs and activities of--
                    (A) the Department of Defense, particularly the 
                Department of the Air Force, the Department of the 
                Navy, and the Defense Advanced Research Projects 
                Agency;
                    (B) the Department of Commerce, particularly the 
                National Institute of Standards and Technology;
                    (C) the Department of Transportation, particularly 
                the Federal Aviation Administration;
                    (D) the National Aeronautics and Space 
                Administration;
                    (E) the National Science Foundation;
                    (F) the Federal laboratories; and
                    (G) such other agencies and departments as the 
                President or the Coordinating Committee considers 
                appropriate.
    (c) Coordinating Committee.----
            (1) Authority; composition.--The Program shall be 
        administered by an Aeronautical Technology Coordinating 
        Committee (hereafter in this Act referred to as the 
        ``Coordinating Committee'') composed of the following 
        officials:
                    (A) The Director, who shall be chairperson.
                    (B) The Secretary of Defense.
                    (C) The Secretary of Commerce.
                    (D) The Secretary of Transportation.
                    (E) The Administrator of the National Aeronautics 
                and Space Administration.
                    (F) The Director of the National Science 
                Foundation.
            (2) Functions.--The Coordinating Committee shall--
                    (A) serve as the lead entity responsible for 
                implementation of the Program;
                    (B) coordinate all Federal research and development 
                programs relating to aeronautical technologies and 
                related manufacturing technologies;
                    (C) consult regularly with and seek recommendations 
                from the Advisory Committee established by section 6;
                    (D) consult with academic, State, industry, and 
                other appropriate groups conducting research on and 
                using aeronautical technologies; and
                    (E) submit to the Congress an annual report, along 
                with the President's annual budget request, describing 
                the implementation of the Program.

SEC. 5. AERONAUTICAL TECHNOLOGY CONSORTIUM.

    (a) In General.--Under the Program, the Coordinating Committee 
shall provide assistance to an Aeronautical Technology Consortium 
(hereafter in this Act referred to as the ``Consortium''), which shall 
consist of all eligible firms that--
            (1) are engaged in research, development, testing, 
        demonstration, or production of aeronautical technology 
        applicable to the production of large civil aircraft;
            (2) are selected by the Coordinating Committee, through the 
        Director, on the basis of the criteria specified under 
        subsection (d); and
            (3) are necessary to enable the Consortium to achieve its 
        purpose as described under subsection (b). 
    (b) Purpose.--The purpose of the Consortium is to conduct industry-
led joint ventures relating to--
            (1) manufacturing technologies applicable to the production 
        of large civil aircraft;
            (2) the transfer and conversion of aeronautical 
        technologies developed for national security purposes to 
        commercial applications for large civil aircraft;
            (3) subsonic aeronautical technologies applicable to the 
        development and production of large civil aircraft; and
            (4) supersonic aeronautical technologies applicable to the 
        development and production of large civil aircraft.
    (c) Assistance To Be Provided.--In providing assistance to the 
Consortium, the Coordinating Committee, acting through the Director, 
shall--
            (1) provide financial and other assistance to the United 
        States commercial aircraft industry in the formation of the 
        Consortium;
            (2) support the Consortium, and such subordinate joint 
        ventures as the Consortium may establish, by making available 
        equipment, facilities, and personnel;
            (3) aid the Consortium, and such subordinate joint ventures 
        as the Consortium may establish, by means of grants, 
        cooperative agreements, contracts, and provision of 
        organizational and technical advice;
            (4) enter into contracts and cooperative agreements in 
        support of the Consortium with independent research 
        organizations, institutions of higher education, and agencies 
        of State and local governments;
            (5) involve the Federal laboratories in the Consortium, 
        where appropriate, using among other authorities the 
        cooperative research and development agreements provided for 
        under section 12 of the Stevenson-Wydler Technology Innovation 
        Act of 1980 (15 U.S.C. 3710a); and
            (6) carry out, in a manner consistent with this section, 
        such other cooperative research activities with the Consortium 
        and joint ventures as may be authorized by law or assigned to 
        the Coordinating Committee by the President.
    (d) Selection of Consortium Participants.--The criteria for 
selection of industry participants in the Consortium, as referred to in 
subsection (a)(2), are as follows:
            (1) The extent of present participation of the eligible 
        firm in Federal research and development programs relating to 
        aeronautical technologies and related manufacturing 
        technologies.
            (2) The extent of present commercial activity of the 
        eligible firm relating to the development and production of 
        large civil aircraft, engines, advanced materials, avionics, 
        and other related components.
            (3) The extent of present commercial activity of the 
        eligible firm relating to aeronautical technologies developed 
        for national security purposes that may have commercial 
        applications for large civil aircraft.
            (4) The technical excellence of the eligible firm.
            (5) The extent of financial commitment of the eligible firm 
        to the Consortium.
            (6) Such other criteria that the Director prescribes.
    (e) Charter; Operating Plan.--The Consortium shall have--
            (1) a charter, agreed to by all industry participants in 
        the Consortium, that meets requirements established by the 
        Coordinating Committee; and
            (2) an annual operating plan that is developed in 
        consultation with the Coordinating Committee and the Advisory 
        Committee established in section 6.
    (f) Financial Commitment of Industry Participants.--
            (1) In general.--The Director shall ensure that, to the 
        maximum extent the Director determines to be practicable, the 
        total amount of the funds provided by the Federal Government to 
        the Consortium does not exceed the total amount provided by the 
        industry participants in the Consortium.
            (2) Authority to exceed 50 per centum federal funding.--
        Nothing in this subsection shall be construed to prohibit the 
        Federal Government from providing greater than 50 per centum of 
        the funds for any individual joint venture, project, or program 
        where the Director determines such funding to be consistent 
        with the goals of the Program.
            (3) Consideration of in-kind contributions.--The Director 
        shall prescribe regulations to provide for consideration of in-
        kind contributions by industry participants in the Consortium 
        and joint ventures for the purpose of determining the share of 
        the funds that have been or are being provided by such 
        participants.
    (g) Merit Review.--No contract or other award for a research 
project may be made under this section until the research project in 
question has been subject to a merit review, and, in the opinion of the 
reviewers appointed by the Director, has been shown to have scientific 
and technical merit.
    (h) Oversight of Consortium Activities.--The Coordinating 
Committee, acting through the Director, shall take such actions as are 
necessary and appropriate to ensure that the Consortium's activities 
help to achieve the purposes of this act, including--
            (1) prescribing regulations for the purpose of this 
        section;
            (2) establishing procedures for the use by the Coordinating 
        Committee of funds authorized to a particular Federal agency or 
        department that is participating in the Consortium;
            (3) establishing procedures regarding financial reporting 
        and auditing to ensure that contracts and other awards are used 
        for the purposes specified in this section and are in 
        accordance with sound accounting practices;
            (4) monitoring how technologies developed through the 
        Consortium are used, and reporting to the Congress on the 
        extent of any overseas transfer of those technologies;
            (5) assuring that the recommendations of the Advisory 
        Committee established in section 6 are considered routinely in 
        carrying out the responsibilities of the Coordinating Committee 
        under this Act; and
            (6) providing for the expeditious and timely transfer of 
        technology developed and owned by the Consortium to the 
        participants in the Consortium.
    (i) Export of Aeronautical Technology.--Any export of materials, 
equipment, and technology developed by the Consortium in whole or in 
part with financial assistance provided under this section shall be 
subject to the Export Administration Act of 1979 (50 U.S.C. App. 2401 
et seq.) and shall not be subject to the Arms Export Control Act.
    (j) Freedom of Information Act.--Section 552 of title 5, United 
States Code, shall not apply to the following information obtained by 
the Federal Government on a confidential basis in connection with the 
activities of any industry participant in the Consortium:
            (1) information on the business operation of any industry 
        participant in the Consortium; and
            (2) intellectual property, trade secrets, and technical 
        data possessed by any industry participant in the Consortium.
    (k) Intellectual Property.--
            (1) Disclosure limitations.--Notwithstanding any other 
        provision of law, intellectual property, trade secrets, and 
        technical data owned and developed by the Consortium or any 
        industry participant in the Consortium may not be disclosed by 
        any officer or employee of the Federal Government except in 
        accordance with a written agreement between the owner or 
        developer and the Director.
            (2) Title to and licensing of inventions and patents.--
        Title to any invention or patent arising from assistance 
        provided under this section shall vest in a company or 
        companies incorporated in the United States. The Federal 
        Government may reserve a nonexclusive, nontransferable, 
        irrevocable paid-up license, to have practiced for or on behalf 
        of the Federal Government, in connection with any such 
        invention or patent, but shall not, in the exercise of such 
        license, publicly disclose proprietary information related to 
        the license. Title to any such invention or patent shall not be 
        transferred or passed, except to a company incorporated in the 
        United States, until the expiration of the first patent 
        obtained in connection with such invention. For purposes of 
        this paragraph, the term ``invention or patent'' means an 
        invention patentable under title 35, United States Code, or any 
        patent on such an invention.
            (3) Licensing to companies.--Nothing in this subsection 
        shall be construed to prohibit the licensing, to any company, 
        of intellectual property rights arising from assistance 
        provided under this section.

SEC. 6. AERONAUTICAL TECHNOLOGY ADVISORY COMMITTEE.

    (a) Establishment.--There is established an Aeronautical Technology 
Advisory Committee (hereafter in this Act referred to as the ``Advisory 
Committee'').
    (b) Functions.--The Advisory Committee shall advise the 
Coordinating Committee and the Consortium on--
            (1) the Strategy and other appropriate goals and priorities 
        for the Program, and how best to achieve those goals;
            (2) the operating plan of the Consortium;
            (3) the annual progress of the Program and the Consortium 
        in meeting the requirements of section 4(a) and, in the first 
        five years, the Strategy;
            (4) organizational and programmatic reforms which would 
        improve the effectiveness of Federal research and development 
        programs relating to aeronautical technologies and related 
        manufacturing technologies in promoting the competitiveness of 
        the United States commercial aircraft industry;
            (5) mechanisms for private industry comment and guidance 
        regarding the cost-effectiveness and commercial practicability 
        of existing and proposed Federal research and development 
        programs relating to aeronautical technologies and related 
        manufacturing technologies; and
            (6) policies and mechanisms to promote the transfer and 
        conversion to commercial applications of aeronautical 
        technologies developed for national security purposes; and
            (7) other goals and priorities for Federal research and 
        development programs relating to aeronautical technologies and 
        related manufacturing technologies.
    (c) Membership.--The Advisory Committee shall be composed of twelve 
members, who shall be appointed by the President from among individuals 
who, because of their experience and accomplishments in the field of 
aeronautics and related technological and scientific fields, are 
exceptionally qualified to analyze and recommend policy relating to 
aeronautical technology research and development. Membership of the 
Advisory Committee shall be composed of representatives of--
            (1) large civil aircraft manufacturing companies;
            (2) aircraft engine manufacturing companies;
            (3) advanced materials companies;
            (4) avionics and other systems companies;
            (5) other subcontractor firms engaged in aeronautical 
        technology research, development, and production; and
            (6) Federal laboratories, universities, and independent 
        research institutes.
    (d) Terms of Membership.--Each member of the Advisory Committee 
shall be appointed for a term of three years, except that of the 
members first appointed, four shall be appointed for a term of one 
year, four shall be appointed for a term of two years, and four shall 
be appointed for a term of three years, as designated by the President 
at the time of the appointment. A member of the Advisory Committee may 
serve after the expiration of the member's term until a successor has 
taken office.
    (e) Chairperson.--The President shall appoint one member of the 
Advisory Committee to serve as chairperson.
    (f) Quorum.--Seven members of the Advisory Committee shall 
constitute a quorum.
    (g) Meetings.--The Advisory Committee shall meet at least quarterly 
at the call of the chairperson or one-third of its members, and at the 
call of the Coordinating Committee.
    (h) Compensation and Expenses.--
            (1) No compensation for members.--Each member of the 
        Advisory Committee shall serve without compensation.
            (2) Travel expenses authorized.--While away from their 
        homes or regular places of business in performance of the 
        duties of the Advisory Committee, members of the Advisory 
        Committee shall be allowed travel expenses in accordance with 
        subchapter I of chapter 57 of title 5, United States Code.
    (i) Federal Advisory Committee Act.--Section 14 of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the Advisory 
Committee.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Office of Science 
and Technology Policy, to carry out the provisions of this Act, such 
sums as may be necessary for the fiscal years 1994 and 1995.

                                 <all>

S 419 IS----2