[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4063 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4063

  To amend the Rehabilitation Act of 1973 to provide for research and 
     development of assistive technology and universally designed 
                  technology, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 16, 1998

 Mrs. Morella introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
     Committees on Ways and Means, and Science, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Rehabilitation Act of 1973 to provide for research and 
     development of assistive technology and universally designed 
                  technology, 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 ``Assistive and Universally Designed 
Technology Improvement Act for Individuals with Disabilities''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The area of assistive technology is greatly overlooked 
        by the Federal Government and the private sector. While 
        assistive technology's importance spans age and disability 
        classifications, assistive technology does not maintain the 
        recognition in the Federal Government necessary to provide 
        important assistance for research and development programs or 
        to individuals with disabilities. The private sector lacks 
        adequate incentives to produce assistive technology, and end-
        users lack adequate resources to acquire assistive technology.
            (2) As technology has come to play an increasingly 
        important role in the lives of all persons in the United 
        States, in the conduct of business, in the functioning of 
        government, in the fostering of communication, in the conduct 
        of commerce, in the transformation of employment, and in the 
        provision of education, technology's impact upon the lives of 
        the more than 50,000,000 individuals with disabilities in the 
        United States has been comparable to technology's impact upon 
        the remainder of our Nation's citizens. No development in 
        mainstream technology can be imagined that will not have 
        profound implications for individuals with disabilities.
            (3) In a technological environment, the line of demarcation 
        between assistive and mainstream technology becomes ever more 
        difficult to draw, and the decisions made by the designers of 
        mainstream equipment and services will increasingly determine 
        whether and to what extent the equipment and services can be 
        accessed and used by individuals with disabilities.
            (4) A commitment to assistive technology, while remaining 
        important, cannot alone ensure access to technology and 
        communications networks by individuals with disabilities. An 
        agenda, including support for universal design, represents the 
        only effective means for guaranteeing the benefits of 
        technology to all persons in the United States, regardless of 
        disability or age, and for assuring for United States industry 
        the continued growth in markets that will warrant continued 
        high levels of innovation and research.
            (5) The Federal Government needs to make improvements to 
        peer review processes that affect assistive technology research 
        and development.
            (6) There are insufficient links between federally funded 
        assistive technology research and development programs and the 
        private sector entities responsible for translating research 
and development into significant new products in the marketplace for 
end-users.
            (7) The Federal Government does not provide assistive 
        technology that is universally designed and targets older and 
        rural assistive technology end-users.
            (8) The Federal Government does not coordinate all Federal 
        assistive technology research and development.
            (9) Small businesses, which provide many innovative ideas 
        for assistive technology and provide the vast majority of 
        research and development efforts that lead to viable commercial 
        assistive technology products, are not utilized in Federal 
        assistive technology research and development efforts to the 
        extent that small businesses may play a key role in assistive 
        technology research and development. In addition, small 
        businesses lack access to the resources of the Federal 
        laboratories and would benefit from partnerships with the 
        Federal laboratories.
            (10) Many more individuals with disabilities could secure 
        and maintain employment and move from income supports to 
        competitive work if given the ability to purchase assistive 
        technology. Tax incentives for businesses to purchase assistive 
        technology for their employees, and micro loans for individuals 
        to purchase assistive technology, help individuals with 
        disabilities improve their quality of life. Such incentives and 
        loans lead to more productive lives, while lessening the 
        financial burdens on society.

SEC. 3. PURPOSE.

    The purposes of this Act are--
            (1) to improve the quality, functional capability, 
        distribution, and affordability of assistive technology and 
        universally designed technology, through federally supported 
        incentives for all the participants in need identification, 
        research and development, product evaluation, technology 
        transfer, and commercialization, for such technologies, to 
        enhance quality of life and ability to obtain employment for 
        all individuals with disabilities;
            (2) to clarify the role of the National Institute on 
        Disability and Rehabilitation Research at the Department of 
        Education so as to provide for better peer reviews;
            (3) to improve coordination of Federal assistive technology 
        research and development by strengthening the Interagency 
        Committee on Disability Research;
            (4) to prioritize assistive technology research, 
        development, and dissemination efforts to match the needs of 
        the underserved assistive technology end-users such as older 
        and rural end-users;
            (5) to increase the use of universal design in the 
        commercial development of standard products;
            (6) to incorporate the principles of universal design in 
        the development of assistive technology;
            (7) to increase usage of the Small Business Innovative 
        Research Program as defined in section 9(e) of the Small 
        Business Act (15 U.S.C. 638(e));
            (8) to improve coordination between the Federal 
        laboratories and the members of the Interagency Committee on 
        Disability Research;
            (9) to improve the transfer of technology from mission-
        oriented applications in Federal laboratories to assistive 
        technology applications in research and development programs, 
        and to transfer prototype assistive technology products from 
        federally sponsored programs to the private sector;
            (10) to increase the availability of assistive technology 
        products and universally designed technology products in the 
        marketplace for the end-users; and
            (11) to create tax incentives and micro loans to assist 
        individuals with disabilities to obtain assistive technology 
        and universally designed technology in order to improve their 
        quality of life and to secure and maintain employment.

SEC. 4. PEER REVIEW PROCESS.

    Title II of the Rehabilitation Act of 1973 (29 U.S.C. 761a et seq.) 
is amended by adding at the end the following:

``SEC. 206. PEER REVIEW PROCESS.

    ``(a) Peer Review Panels.--
            ``(1) Composition.--
                    ``(A) In general.--The Director shall establish a 
                peer review process, involving peer review panels 
                composed of members appointed by the Director, for the 
                review of applications for grants, contracts, or 
                cooperative agreements under this title for research 
                and development of assistive technology and universally 
                designed technology.
                    ``(B) Duration.--The members of such a peer review 
                panel shall serve for terms of 3 years, except that the 
members initially appointed may serve for shorter terms.
                    ``(C) Member terms.--Members of a peer review panel 
                shall serve staggered terms so as to provide for 
                institutional memory and experience at all times.
                    ``(D) Selection and appointment.--
                            ``(i) In general.--Members of peer review 
                        panels shall be selected and appointed based 
                        upon their training and experience in relevant 
                        scientific or technical fields, taking into 
                        account, among other factors--
                                    ``(I) the level of formal 
                                scientific or technical education 
                                completed or experience acquired by an 
                                individual;
                                    ``(II) the extent to which the 
                                individual has engaged in relevant 
                                research, the capacities (such as 
                                principal investigator or assistant) in 
                                which the individual has so engaged, 
                                and the quality of such research;
                                    ``(III) the recognition of the 
                                individual, as reflected by awards and 
                                other honors received from scientific 
                                and professional organizations outside 
                                the Department of Education; and
                                    ``(IV) the need for a panel to 
                                include experts from various areas or 
                                specializations within the fields of 
                                assistive technology and universally 
                                designed technology.
                            ``(ii) Special rules.--To the extent 
                        practicable, the peer review panels shall have, 
                        collectively, a significant number of members 
                        who are individuals with disabilities, and the 
                        members of the panels shall reflect the 
                        population of the United States as a whole in 
                        terms of gender, race, and ethnicity.
                    ``(E) Officers and employees of the federal 
                government.--Not more than \1/4\ of the members of any 
                peer review panel may be officers or employees of the 
                Federal Government. For purposes of the preceding 
                sentence, an individual who is a member of a peer 
                review panel shall not, by virtue of such service, be 
                considered to be an officer or employee of the Federal 
                Government.
            ``(2) Conflict of interest.--
                    ``(A) In general.--No member of a peer review panel 
                may participate in or be present during any review by 
                the peer review panel of an application for a grant, 
                contract, or cooperative agreement, in which, to the 
                member's knowledge, any of the following has a 
                financial interest:
                            ``(i) The member of the panel or the 
                        member's spouse, parent, child, or business 
                        partner.
                            ``(ii) Any organization with which the 
                        member or the member's spouse, parent, child, 
                        or business partner is negotiating or has any 
                        arrangement concerning employment or any other 
                        similar association.
                    ``(B) Disqualified panel.--In the event any member 
                of a peer review panel or the member's spouse, parent, 
                child, or business partner is currently, or is expected 
                to be, the principal investigator or a member of the 
                staff responsible for carrying out any research or 
                development activities described in an application for 
                a grant, contract, or cooperative agreement, the 
                Secretary shall disqualify the panel from reviewing the 
                application and ensure that the review will be 
                conducted by another peer review panel with the 
                expertise to conduct the review. If there is no other 
                panel with the requisite expertise, the Secretary shall 
                ensure that the review will be conducted by an ad hoc 
                panel of members of the peer review panels, not more 
                than 50 percent of whom may be from the disqualified 
                panel.
                    ``(C) Prohibition.--No member of a peer review 
                panel may participate in or be present during any 
                review under this title of a specific application for a 
                grant, contract, or cooperative agreement for an 
                activity for which the member has had or is expected to 
                have any other responsibility or involvement (either 
                before or after the grant, contract, or cooperative 
                agreement was awarded for the activity) as an officer 
                or employee of the Federal Government.
            ``(3) Availability of information.--Transcripts, minutes, 
        and other documents made available to or prepared for or by a 
        peer review panel shall be available for public inspection and 
        copying to the extent provided in section 552 of title 5, 
        United States Code (commonly known as the `Freedom of 
        Information Act'), the Federal Advisory Committee Act (5 U.S.C. 
        App.), and section 552a of title 5, United States Code 
        (commonly known as the `Privacy Act of 1974').
            ``(4) Evaluation of application.--A peer review panel 
        shall--
                    ``(A) evaluate applications for grants, contracts, 
                or cooperative agreements under this title with respect 
                to research and development of assistive technology and 
                universally designed technology to assure duplication 
                of such research and development does not occur across 
                Federal departments and agencies; and
                    ``(B) evaluate the applications with respect to 
                meeting immediate needs for research and development of 
                assistive technology and universally designed 
                technology in the disabled community (as identified in 
                data collected by the Interagency Committee on 
                Disability Research), through criteria that will ensure 
                the effectiveness of the priorities of the Interagency 
                Committee for such research and development.
            ``(5) Application review criteria.--In carrying out a 
        review of an application for a grant, contract, or cooperative 
        agreement with respect to research and development of assistive 
        technology or universally designed technology under this 
section, the peer review panel, among other factors, shall take into 
account--
                    ``(A) the need for research and development of 
                assistive technology and universally designed 
                technology that facilitates individuals with 
                disabilities obtaining employment;
                    ``(B) the need to allocate amounts of assistance 
                through grants, contracts, or cooperative agreements 
                for research and development of assistive technology 
                and universally designed technology in a manner 
                proportionate to need for assistive technology and 
                universally designed technology, and proportionate to 
                the population of disability groups, including 
                individuals with physical disabilities, individuals 
                with cognitive disabilities, older individuals with 
                disabilities, and rural assistive technology and 
                universally designed technology end-users;
                    ``(C) the significance and originality from a 
                scientific or technical standpoint of the goals of the 
                proposed research and development;
                    ``(D) the adequacy of the methodology proposed to 
                carry out the research and development;
                    ``(E) the qualifications and experience of the 
                proposed principal investigator and staff for the 
                research and development;
                    ``(F) the reasonable availability of resources 
                necessary to the research and development;
                    ``(G) the reasonableness of the proposed budget and 
                the duration in relation to the proposed research and 
                development;
                    ``(H) if an application involves activities that 
                may have an adverse effect upon humans, animals, or the 
                environment, the adequacy of the proposed means for 
                protecting against or minimizing such effects;
                    ``(I) the extent to which appropriate measures will 
                be taken to advance the cause of universal design 
                through proposed assistive technology research and 
                development, including the extent to which the 
                applicant has reviewed a variety of existing measures 
                (as of the date of the review) on the part of the 
                designers and producers of assistive technology and the 
                providers of related services to produce universally 
                designed technology;
                    ``(J) the extent to which efforts shall be made to 
                include small businesses in the proposed research and 
                development of assistive technology or universally 
                designed technology through increased usage of the 
                Small Business Innovative Research Program as defined 
                in section 9(e) of the Small Business Act (15 U.S.C. 
                638(e));
                    ``(K) the extent to which the proposed research and 
                development of assistive technology or universally 
                designed technology will result in the production of 
                actual products for the marketplace for assistive 
                technology or universally designed technology end-
                users;
                    ``(L) the extent to which the applicant identifies 
                secondary benefits or applications of the assistive 
                technology or universally designed technology involved, 
                or agrees to make matching contributions (in cash or in 
                kind, fairly evaluated) toward the cost of the research 
                and development, in partnership with representatives of 
                industry, government, and educational institutions; and
                    ``(M) the extent to which proposed research and 
                development of universally designed technology will 
                result in a change in design of standard products, so 
                that the products are more usable by a broad range of 
                individuals with disabilities or older individuals.
            ``(6) Compensation.--Each member of a peer review panel who 
        is not an officer or employee of the Federal Government shall 
        be compensated at a rate equal to the daily equivalent of the 
        annual rate of basic pay prescribed for level IV of the 
        Executive Schedule under section 5315 of title 5, United States 
        Code, for each day (including travel time) during which such 
        member is engaged in the performance of the duties of the 
        panel. All members of the panel who are officers or employees 
        of the Federal Government shall serve without compensation in 
        addition to compensation received for their services as 
        officers or employees of the Federal Government.
            ``(7) Travel expenses.--The members of the panel shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the panel.
            ``(8) Termination.--Section 14 of the Federal Advisory 
        Committee Act (5 U.S.C. App.) shall not apply to the peer 
        review panels.

``SEC. 207. DEFINITIONS.

    ``In this title:
            ``(1) Assistive technology.--The term `assistive 
        technology' means technology designed to be utilized in an 
        assistive technology device or assistive technology service.
            ``(2) Assistive technology and universally designed 
        technology end-user.--The term `assistive technology and 
        universally designed technology end-user' means any individual 
        with a disability who uses assistive technology or universally 
        designed technology to improve the quality of life of the 
        individual or to obtain employment, including an individual 
        with a physical disability, a cognitive disability, or a 
        sensory disability, or an older individual.
            ``(3) Technology transfer.--The term `technology transfer' 
        means the transmittal of developed ideas, products, and 
        techniques--
                    ``(A) from a research environment to an environment 
                of practical application; or
                    ``(B) from application in a prototype invention to 
                mass production in a commercial product.
            ``(4) Universal design.--The term `universal design' means 
        the design, development, fabrication, marketing, and technical 
        support of products, services, and environments designed to be 
        usable, to the greatest extent possible, by the largest number 
        of persons, including individuals with disabilities and 
        individuals without disabilities. No product, service, or 
        environment shall be considered to have a universal design if 
        use of the product, service, or environment is substantially 
        limited or prevented by reason of--
                    ``(A) a disability related to hearing, vision, 
                learning, strength, reach, or movement; or
                    ``(B) the existence of any other limitation of a 
                major life function.''.

SEC. 5. TECHNOLOGY TRANSFER.

    (a) Amendments to Provisions Relating to the Interagency Committee 
on Disability Research.--Section 203 of the Rehabilitation Act of 1973 
(29 U.S.C. 761b) is amended--
            (1) in subsection (a), by adding at the end the following:
    ``(3) Each member of the Committee shall attend all meetings of the 
Committee or delegate the responsibility for attending the meetings to 
a designee with the authority to commit the department or agency 
represented to participate in a joint project, the authority to comment 
on issues on behalf of the department or agency, and the expertise to 
participate in Committee discussions.'';
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' before ``After 
                receiving''; and
                    (B) by adding at the end the following:
            ``(2) The Committee shall--
                    ``(A) monitor the range of research and development 
                of assistive technology and universally designed 
                technology carried out by the Federal departments and 
                agencies represented on the Committee;
                    ``(B) ensure that the highest quality research and 
                development of assistive technology and universally 
                designed technology (through methods such as peer 
                review) is carried out by the departments and agencies;
                    ``(C) identify and establish clear research 
                priorities for research and development of assistive 
                technology and universally designed technology that 
                will benefit individuals with disabilities, and permit 
                joint ventures concerning research and development of 
                assistive technology and universally designed 
                technology among the department needs and agencies;
                    ``(D) ensure interagency collaboration and joint 
                research activities and reduce unnecessary duplication 
                of effort by the departments and agencies;
                    ``(E) develop effective technology transfer 
                activities for the departments and agencies, including 
                activities resulting from increased supply of assistive 
                technology and universally designed technology or 
                increased demand of assistive technology and 
                universally designed technology end-users;
                    ``(F) help establish and maintain the use of 
                consistent definitions and terminologies among the 
                departments and agencies, which definitions shall 
                contribute to the production of comparable research and 
                to the development of reliable statistical data across 
                departments and agencies;
                    ``(G) optimize the productivity of the departments 
                and agencies through resource sharing and other cost-
                saving activities;
                    ``(H) identify gaps in needed research and 
                development and make efforts to ensure that the gaps 
                are filled by a Federal department or agency 
                represented on the Committee; and
                    ``(I) collaborate with member agencies on specific 
                projects that need additional funding beyond the 
                capacity of 1 Federal department or agency represented 
                on the Committee.'';
            (3) by redesignating subsection (c) as subsection (d);
            (4) by inserting after subsection (b) the following:
    ``(c)(1) The Director shall establish special task forces and 
subcommittees of the Committee for research and development of 
assistive technology and universally designed technology, including 
task forces and subcommittees related to medical rehabilitation, 
technology (including universal design), and the employment of 
individuals with disabilities.
    ``(2) The Director shall appoint 2 full-time staff members to 
assist the Director in the operation of the Committee.'';
            (5) in subsection (d) (as redesignated by paragraph (3))--
                    (A) by inserting ``(1)'' before ``The Committee''; 
                and
                    (B) by adding at the end the following:
    ``(2) The Director shall issue a biannual report announcing the 
availability of the grants, contracts, or cooperative agreements made 
available through Federal departments and agencies represented on the 
Committee for research and development of assistive technology and 
universally designed technology.
    ``(3) The Director shall submit to the Commissioner for inclusion 
in the annual report to Congress described in section 13--
            ``(A) the results and an analysis of the activities 
        conducted under grants, contracts, or cooperative agreements 
        awarded by departments and agencies represented on the 
        Interagency Committee on Disability Research for research and 
        development of assistive technology and universally designed 
        technology;
            ``(B) a detailed summary of the activities and the 
        effectiveness of the Committee in expanding research 
        opportunities that lead to direct development of assistive 
        technology devices and assistive technology services; and
            ``(C) results of periodic surveys of manufacturers and 
        suppliers of assistive technology and universally designed 
        technology, and of assistive technology and universally 
        designed technology end-users.''.
    (b) Amendments to the Stevenson-Wydler Technology Innovation Act of 
1980.--Section 11(e) of the Stevenson-Wydler Technology Innovation Act 
of 1980 (15 U.S.C. 3710(e)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (I), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (J), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(K) develop and disseminate, including through accessible 
        electronic formats, to all Federal, State, and local agencies 
        and instrumentalities involved in assistive technology and 
        universally designed technology, in order to maximize research 
        and development of assistive technology and universally 
        designed technology, information that indicates--
                    ``(i) the extent of all activities undertaken by 
                the Federal laboratories in the previous year having an 
                intended or a recognized potential impact upon 
                individuals with disabilities;
                    ``(ii) the degree to which ongoing or projected 
                activities of the Federal laboratories are expected to 
                have an impact upon the available range of, or 
                applications for, assistive technology and universally 
                designed technology;
                    ``(iii) the extent to which expert resources within 
                the Consortium are made available or can be accessed 
                for the purpose of meeting needs related to assistive 
                technology and universally designed technology in the 
                communities where the Federal laboratories operate; and
                    ``(iv) the extent to which each Federal laboratory 
                has attempted to involve, and succeeded in involving, 
                individuals with disabilities in the development of 
                priorities, plans, and prototypes with respect to 
                assistive technology and universally designed 
                technology.''; and
            (2) by adding at the end the following:
    ``(8)(A) The Director of the National Institute on Disability and 
Rehabilitation Research shall participate annually in the national 
meeting and interagency meeting of the Consortium.
    ``(B) The Director, in collaboration with other members of the 
Interagency Committee on Disability Research, where appropriate, shall 
coordinate the activities of the Federal laboratories, with respect to 
research and development of assistive technology and universally 
designed technology.
    ``(C) In conjunction with members of the Interagency Committee on 
Disability Research, the Director shall utilize the resources of the 
Consortium to identify potential public and private sector partners for 
research and development collaboration regarding assistive technology 
and universally designed technology.
    ``(9) In this section:
            ``(A) The terms `individual with a disability' and 
        `individuals with disabilities' have the meanings given the 
        terms in section 3 of the Technology-Related Assistance for 
        Individuals With Disabilities Act of 1988 (29 U.S.C. 2202).
            ``(B) The terms `universal design' and `assistive 
        technology' have the meaning given the term in section 207 of 
        the Rehabilitation Act of 1973.''.

SEC. 6. MICRO LOANS.

    (a) Territories.--Section 301 of the Technology-Related Assistance 
for Individuals With Disabilities Act of 1988 (29 U.S.C. 2281) is 
amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Award Basis.--The Secretary shall award grants to States 
under this section on the basis of the population of the States.''.
    (b) Mechanisms.--Subsection (d) of section 301 of the Technology-
Related Assistance for Individuals With Disabilities Act of 1988 (as 
redesignated by subsection (a)(1)) is amended to read as follows:
    ``(c) Mechanisms.--
            ``(1) In general.--The alternative financing mechanisms 
        shall include--
                    ``(A) an interest buy-down loan program;
                    ``(B) a revolving loan fund program; or
                    ``(C) a loan guarantee program.
            ``(2) Requirements.--Each program described in paragraph 
        (1) shall--
                    ``(A) provide assistance for assistive technology 
                devices, assistive technology services, and universally 
                designed technology products and services; and
                    ``(B) maximize consumer participation in all 
                aspects of the program.
            ``(3) Definitions.--
                    ``(A) Interest buy-down loan program.--The term 
                `interest buy-down loan program' means a loan program 
                that involves an organization, using the organization's 
                funds, to reduce the interest rate of a loan made by a 
                lending institution to a borrower.
                    ``(B) Loan guarantee program.--The term `loan 
                guarantee program' means a loan program that provides 
                loans that are backed by a promise or guarantee that, 
                if there is a default on a loan made under the program, 
                the loan will be paid back.
                    ``(C) Revolving loan fund program.--The term 
                `revolving loan fund program' means a loan program in 
                which individuals borrow money from a loan fund, loan 
                repayments are dedicated to the recapitalization of the 
                loan fund, and the repayments are used to make 
                additional loans.''.
    (c) Authorization of Appropriations.--Section 308(a) of the 
Technology-Related Assistance for Individuals With Disabilities Act of 
1988 (29 U.S.C. 2288(a)) is amended by striking ``this title'' and all 
that follows and inserting ``this title, such sums as may be necessary 
for each of fiscal years 1999 through 2001.''.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    Section 201(a) of the Rehabilitation Act of 1973 (29 U.S.C. 761(a)) 
is amended to read as follows:
    ``(a) There are authorized to be appropriated--
            ``(1) such sums as may be necessary for each of fiscal 
        years 1999 through 2001, for the purpose of providing for the 
        expenses of the National Institute on Disability and 
        Rehabilitation Research under section 202, which--
                    ``(A) shall include the expenses of the Interagency 
                Committee on Disability Research under section 203, the 
                Rehabilitation Research Advisory Council under section 
                205, and the peer review panels under section 206; and
                    ``(B) shall not include the expenses of such 
                Institute to carry out section 204; and
            ``(2)(A) such sums as may be necessary for each of fiscal 
        years 1999 through 2001 to carry out section 204, including 
        providing financial assistance for research and development on 
        assistive technology and universally designed technology at the 
        level of assistance provided for fiscal year 1998; and
            ``(B) $10,000,000 for each of fiscal years 1999 through 
        2001, to provide, under section 204, such financial assistance 
        (in addition to the level of assistance provided for fiscal 
        year 1998).''.

SEC. 8. TAX INCENTIVES FOR ASSISTIVE TECHNOLOGY.

    (a) Assistive Technology Development Business Tax Credit.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        business related credits) is amended by adding at the end the 
        following:

``SEC. 45D. CREDIT FOR ASSISTIVE TECHNOLOGY.

    ``(a) General Rule.--For purposes of section 38, the assistive 
technology credit of any taxpayer for any taxable year is an amount 
equal to so much of the qualified assistive technology expenses paid or 
incurred by the taxpayer during such year as does not exceed $100,000.
    ``(b) Qualified Assistive Technology Expenses.--For purposes of 
this section--
            ``(1) In general.--The term `qualified assistive technology 
        expenses' means expenses for the design, development, and 
fabrication of assistive technology devices.
            ``(2) Assistive technology device.--The term `assistive 
        technology device' means any item, piece of equipment, or 
        product system, including any item acquired commercially off 
        the shelf and modified or customized by the taxpayer, that is 
        used to increase, maintain, or improve functional capabilities 
        of individuals with disabilities.
            ``(3) Individuals with disabilities.--The term `individuals 
        with disabilities'' has the meaning given the term by section 3 
        of the Technology Related Assistance for Individuals with 
        Disabilities Act of 1988 (29 U.S.C. 2202).
    ``(c) No Double Benefit.--Any amount taken into account under 
section 41 may not be taken into account under this section.
    ``(d) Termination.--This section shall not apply to any amount paid 
or incurred after December 31, 2003.''.
            (2) Credit treated as business credit.--Section 38(b) of 
        the Internal Revenue Code of 1986 (relating to current year 
        business credit) is amended by striking ``plus'' at the end of 
        paragraph (11), by striking the period at the end of paragraph 
        (12) and inserting ``, plus'', and by adding at the end the 
        following:
            ``(13) the assistive technology credit determined under 
        section 45D(a).''.
            (3) Transitional rule.--Section 39(d) of the Internal 
        Revenue Code of 1986 (relating to transitional rules) is 
        amended by adding at the end the following:
            ``(9) No carryback of section 45D credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the assistive technology credit 
        determined under section 45D(a) may be carried back to a 
        taxable year ending before January 1, 1999.''.
            (4) Clerical amendment.--The table of sections for subpart 
        D of part IV of subchapter A of chapter 1 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following:

                              ``Sec. 45D. Credit for assistive 
                                        technology.''.
            (5) Evaluation of effectiveness of credit.--The Secretary 
        of the Treasury shall evaluate the effectiveness of the 
        assistive technology credit under section 45D of the Internal 
        Revenue Code of 1986, as added by this subsection, and report 
        to the Congress the results of such evaluation not later than 
        January 1, 2003.
    (b) Expansion of Architectural and Transportation Barrier Removal 
Deduction.--
            (1) In general.--Section 190 of the Internal Revenue Code 
        of 1986 is amended--
                    (A) by inserting ``and qualified communications 
                barrier removal expenses'' after ``removal expenses'' 
                in subsections (a)(1),
                    (B) by adding at the end of subsection (b) the 
                following:
            ``(4) Qualified communications barrier removal expenses.--
                    ``(A) In general.--The term `qualified 
                communications barrier removal expense' means a 
                communications barrier removal expense with respect to 
                which the taxpayer establishes, to the satisfaction of 
                the Secretary, that the resulting removal of any such 
                barrier meets the standards promulgated by the 
                Secretary and set forth in regulations prescribed by 
                the Secretary. Such term shall not include the costs of 
                general communications system upgrades or periodic 
                replacements that do not heighten accessibility as the 
                primary purpose and result of such replacements.
                    ``(B) Communications barrier removal expenses.--The 
                term `communications barrier removal expense' means an 
                expenditure for the purpose of identifying and 
                implementing alternative technologies or strategies to 
                remove those features of the physical, information-
                processing, telecommunications equipment or other 
                technologies that limit the ability of handicap 
                individuals to obtain, process, retrieve, or 
                disseminate information that nonhandicapped individuals 
                in the same or similar setting would ordinarily be 
                expected and be able to obtain, retrieve, manipulate, 
                or disseminate.'', and
                    (C) by striking ``and transportation'' in the 
                heading and inserting ``, transportation, and 
                communications''.
            (2) Conforming amendment.--The item relating to section 190 
        in the table of sections for part VI of subchapter B of chapter 
        1 of the Internal Revenue Code of 1986 is amended by striking 
        ``and transportation'' and inserting ``, transportation, and 
        communications''.
    (c) Expansion of Work Opportunity Credit.--Section 51(c) of the 
Internal Revenue Code of 1986 (defining wages) is amended by 
redesignating paragraph (4) as paragraph (5) and by inserting after 
paragraph (3) the following:
            ``(4) Assistive technology expenses.--
                    ``(A) In general.--The term `wages' includes 
                expenses incurred in the acquisition and use of 
                technology--
                            ``(i) to facilitate the employment of any 
                        individual, including a vocational 
                        rehabilitation referral; or
                            ``(ii) to provide a reasonable 
                        accommodation for any employee who is a 
                        qualified individual with a disability, as such 
                        terms are defined in section 101 of the 
                        Americans with Disabilities Act of 1990 (42 
                        U.S.C. 12111).
                    ``(B) Regulations.--The Secretary shall by 
                regulation provide rules for allocating expenses 
                described in subparagraph (A) among individuals 
                employed by the employer.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
                                 <all>