[Congressional Record Volume 140, Number 23 (Monday, March 7, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 7, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      NATIONAL COMPETITIVENESS ACT

  The PRESIDING OFFICER. Under the previous order, the hour of 1:30 
p.m. having arrived, the Senate will now proceed to the consideration 
of S. 4, which the clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 4) to promote the industrial competitiveness and 
     economic growth of the United States by strengthening and 
     expanding the civilian technology programs of the Department 
     of Commerce, amending the Stevenson-Wydler Technology 
     Innovation Act of 1980 to enhance the development and 
     nationwide deployment of manufacturing technologies, and 
     authorizing appropriations for the Technology Administration 
     of the Department of Commerce, including the National 
     Institute of Standards and Technology, and for other 
     purposes.

  The Senate proceeded to consider the bill, which had been reported 
from the Committee on Commerce, Science, and Transportation, with an 
amendment to strike out all after the enacting clause and insert in 
lieu thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Competitiveness Act of 1993''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Findings.
Sec. 102. Purposes.
Sec. 103. Definitions.

                        TITLE II--MANUFACTURING

Sec. 201. Short title.

           Subtitle A--Manufacturing Technology and Extension

Sec. 211. Findings and purpose.
Sec. 212. Manufacturing technology and extension amendments to the 
              Stevenson-Wydler Act.
Sec. 213. Miscellaneous and conforming amendments.
Sec. 214. Manufacturing Technology Centers.
Sec. 215. State Technology Extension Program.
Sec. 216. American workforce quality.
Sec. 217. Report on options for accelerating the adoption of new 
              manufacturing equipment.

     Subtitle B--National Science Foundation Manufacturing Programs

Sec. 221. National Science Foundation manufacturing activities.

                    TITLE III--CRITICAL TECHNOLOGIES

Sec. 301. Findings.
Sec. 302. Development of plan for the Advanced Technology Program.
Sec. 303. Advanced Technology Program support of large-scale joint 
              ventures.
Sec. 304. Technical amendments.
Sec. 305. Technology financing pilot program. 
Sec. 306. Technology monitoring and competitiveness assessment.
Sec. 307. Commerce Technology Advisory Board.
Sec. 308. Study of semiconductor lithography technologies.

          TITLE IV--ADDITIONAL COMMERCE DEPARTMENT PROVISIONS

Sec. 401. International standardization.
Sec. 402. Malcolm Baldrige Award.
Sec. 403. Cooperative research and development agreements.
Sec. 404. Clearinghouse on State and Local Initiatives.
Sec. 405. Use of domestic products.
Sec. 406. Severability.
Sec. 407. Wind engineering research program.

               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

Sec. 501. Technology Administration.
Sec. 502. National Institute of Standards and Technology.
Sec. 503. Additional activities of the Technology Administration.
Sec. 504. National Science Foundation.
Sec. 505. Availability of appropriations.

     TITLE VI--INFORMATION TECHNOLOGY APPLICATIONS RESEARCH PROGRAM

Sec. 601. Short title.
Sec. 602. Findings and purpose.
Sec. 603. Information technology applications research program.
Sec. 604. Network access.
Sec. 605. Applications for education.
Sec. 606. Applications for manufacturing.
Sec. 607. Applications for health care.
Sec. 608. Applications for libraries.
Sec. 609. Applications for government information.
Sec. 610. High-performance computing and applications advisory 
              committee.
Sec. 611. National Research and Education Network amendments.
Sec. 612. Conforming amendments.
                      TITLE I--GENERAL PROVISIONS

     SEC. 101. FINDINGS.

       Congress finds and declares the following:
       (1) In an increasingly competitive world economy, the 
     companies and nations which lead in the rapid development, 
     commercialization, and application of new technologies, and 
     in the low-priced, high-quality manufacture of products based 
     on those technologies, will lead in economic growth, 
     employment, and high living standards.
       (2) While the United States remains the world leader in 
     science and invention, it has not done as well as it should 
     in commercializing and manufacturing new inventions. This lag 
     and the unprecedented competitive challenge that the Nation 
     has faced from abroad have contributed to a drop in real 
     wages, living standards, and employment opportunities.
       (3) While the private sector must take the lead in the 
     development, application, and manufacture of new 
     technologies, the Federal Government should--
       (A) assist industry in the development of high-risk, long-
     term precommercial technologies which promise large economic 
     benefits for the Nation;
       (B) support industry-led efforts to develop and refine 
     advanced manufacturing technologies, including technologies 
     which improve productivity and quality and which build upon 
     and enhance employee skills;
       (C) work with States, the private sector, worker 
     organizations, and technical and professional societies to 
     help small- and medium-sized manufacturers throughout the 
     Nation to adopt best current manufacturing technologies and 
     practices, to improve worker skills, to establish high-
     performance work organizations, and to prepare, as 
     appropriate, to adopt the advanced computer-controlled 
     manufacturing technologies of the 21st century; and
       (D) cooperate with industry and academia to help create an 
     advanced information infrastructure for the United States.
       (4) In working with industry to promote the technological 
     leadership and economic growth of the United States, the 
     Federal Government also has a responsibility to consult with 
     business and labor leaders on industry's long-term 
     technological and skill needs, to monitor technological 
     trends, production process trends, and technology targeting 
     efforts in other nations, and generally to ensure that 
     Federal technology and industrial modernization programs help 
     United States industry to remain competitive and create good 
     domestic jobs.
       (5) The Department of Commerce, and particularly its 
     Technology Administration and National Institute of Standards 
     and Technology, should continue to help commercial industry 
     to speed the development and commercialization of new 
     technologies, improve and modernize manufacturing, adopt new 
     methods of production, and ensure a growing and healthy 
     national industrial base and good manufacturing jobs. To 
     promote the long-term economic growth of the Nation, these 
     Department of Commerce programs should be strengthened and 
     expanded.

     SEC. 102. PURPOSES.

       The purposes of this Act are to--
       (1) strengthen and expand the ability of Federal technology 
     programs, particularly those of the Department of Commerce, 
     to support industry-led and State-supported efforts to 
     improve the technological capabilities, manufacturing 
     performance, information infrastructure, and employment 
     opportunities of the United States;
       (2) promote and facilitate, particularly through the 
     Advanced Technology Program of the Department of Commerce, 
     the creation, development, and adoption of technologies that 
     will contribute significantly to United States economic 
     competitiveness, employment, high quality jobs, and 
     prosperity;
       (3) develop a nationwide network of sources of 
     technological and industrial modernization advice for 
     manufacturers, particularly small- and medium-sized firms, 
     and to provide high quality, current information to that 
     network;
       (4) encourage the development and rapid application of 
     advanced manufacturing technologies and processes and of 
     advanced workplace practices;
       (5) encourage cooperation among Federal departments and 
     agencies to help firms, managers, and workers, in a 
     coordinated fashion, to take full advantage of manufacturing 
     technology, to improve productivity and quality, and adopt 
     high-performance work organizations which successfully 
     integrate technology and employees;
       (6) stimulate the flow of capital to business concerns 
     engaged principally in development or utilization of critical 
     civilian and other advanced technologies;
       (7) ensure the widest possible application of high-
     performance computing and high-speed networking and to aid 
     United States industry to develop an advanced national 
     information infrastructure; and
       (8) enhance and expand the core programs of the National 
     Institute of Standards and Technology.

     SEC 103. DEFINITIONS.

       For purposes of this Act----
       (1) the term ``advanced manufacturing technologies'' 
     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 promote 
     high-performance, high-skills systems; and
       (B) equipment and processes designed to improve 
     manufacturing quality, productivity, and practice, and to 
     promote sustainable development, including engineering 
     design, quality assurance, concurrent engineering, continuous 
     process production technology, energy efficiency, waste 
     minimization, design for recyclability or parts reuse, 
     inventory management, and enhanced worker skills;
       (2) the term ``advanced workplace practices'' means 
     innovations in work organization and performance, including 
     high-performance workplace systems, flexible production 
     techniques, quality programs, continuous improvement, 
     concurrent engineering, close relations between suppliers and 
     customers, lean manufacturing systems, widely diffused 
     decision-making and work teams, and effective integration of 
     production technology, worker skills and training, and 
     workplace organization;
       (3) the term ``Director'' means the Director of the 
     Institute;
       (4) the term ``Institute'' means the National Institute of 
     Standards and Technology;
       (5) the term ``Secretary'' means the Secretary of Commerce;
       (6) the term ``source reduction'' has the meaning given 
     that term in section 6603 of the Pollution Prevention Act of 
     1990 (42 U.S.C. 13102); and
       (7) the term ``Under Secretary'' means the Under Secretary 
     of Commerce for Technology.
                        TITLE II--MANUFACTURING

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Manufacturing Technology 
     and Extension Act of 1993''.
           Subtitle A--Manufacturing Technology and Extension

     SEC. 211. 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 (that is, appropriate and currently available) 
     technology 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 economic growth, 
     environmental sustainability, standard of living, 
     competitiveness in world markets, and national security of 
     the United States.
       (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, 
     in cooperation with other Federal departments and agencies, 
     can continue to play an important role in assisting United 
     Stated industry to develop, test, and deploy modern and 
     advanced manufacturing technologies and advanced workplace 
     practices.
       (b) Purpose.--It is the purpose of this subtitle to help 
     ensure the continued leadership of the United States in 
     manufacturing by enhancing the Department of Commerce's 
     technology programs to--
       (1) provide domestic manufacturers, especially small- and 
     medium-sized companies and their workforces, with ready 
     access to high quality advice and assistance in the 
     development, deployment, and improvement of modern 
     manufacturing technology, and in solving their specific 
     technology-based problems; and
       (2) encourage, facilitate, and promote the development and 
     adoption of advanced manufacturing technologies and advanced 
     workplace practices by the private sector.

     SEC. 212. MANUFACTURING TECHNOLOGY AND EXTENSION AMENDMENTS 
                   TO THE STEVENSON-WYDLER ACT.

       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 II--MANUFACTURING TECHNOLOGY

     ``SEC. 301. STATEMENT OF POLICY.

       ``Congress declares that it is the policy of the United 
     States that--
       ``(1) Federal agencies, particularly the Department of 
     Commerce, shall work with industry and labor to ensure that 
     within 10 years of the date of enactment of this title the 
     United States is second to no other nation in the 
     development, deployment, and use of advanced manufacturing 
     technologies;
       ``(2) all the major Federal research and development 
     agencies shall place a high priority on the development and 
     deployment of skill-based and advanced manufacturing 
     technologies, and shall work closely with United States 
     industry and with the Nation's universities to develop and 
     test those technologies;
       ``(3) since the development of new skills in the existing 
     and entry workforce, and the development of new 
     organizational and managerial approaches, are integral parts 
     of successfully deploying advanced manufacturing and related 
     technologies, advanced workplace practices should be 
     developed and deployed simultaneously and in a coordinated 
     fashion with the development and deployment of advanced 
     manufacturing technologies; and
       ``(4) other Federal departments and agencies which work 
     with civilian industry and labor may, as appropriate and 
     consistent with applicable statutes and duties, work with the 
     Department of Commerce.

     ``SEC. 302. ROLE OF THE DEPARTMENT OF COMMERCE.

       ``(a) In General.--The Department of Commerce shall, 
     consistent with the policy declared in section 301, work with 
     United States industry and labor and, as appropriate, other 
     Federal departments and agencies to--
       ``(1) help develop new generic advanced manufacturing 
     technologies, including advanced flexible computer-integrated 
     manufacturing systems and electronic communications networks;
       ``(2) assist the States and the private sector to help 
     United States manufacturers, especially small- and medium-
     sized manufacturing enterprises, to adopt best current 
     manufacturing technologies and workplace practices and, as 
     appropriate, new advanced manufacturing equipment and 
     techniques; and
       ``(3) work with the private sector, other Federal 
     departments and agencies, State and local governments, and 
     educational institutions as a catalyst to help develop new 
     manufacturing business practices and arrangements, accounting 
     standards, improved supplier-customer relations, 
     manufacturing modernization and investment justification 
     strategies, and other steps which would accelerate the 
     development, deployment, and use of advanced manufacturing 
     technologies by United States industry, as well as evaluate 
     foreign programs to modernize manufacturing.
       ``(b) Twenty-First Century Manufacturing Infrastructure 
     Program.--(1) As one important step to carry out the 
     responsibilities of the Department of Commerce under 
     subsection (a), there is established within the Institute a 
     Twenty-First Century Manufacturing Infrastructure Program, 
     which shall include--
       ``(A) the Advanced Manufacturing Technology Development 
     Program established under section 303 of this Act; and
       ``(B) the Manufacturing Extension Partnership established 
     under section 304 of this Act and the associated programs 
     established under sections 25 and 26 of the National 
     Institute of Standards and Technology Act (15 U.S.C. 278k and 
     278l).
       ``(2) The Secretary, through the Under Secretary and the 
     Director, may accept the transfer of funds from any other 
     Federal agency and may use those funds to implement the 
     Twenty-First Century Manufacturing Infrastructure Program and 
     support its activities.

     ``SEC. 303. ADVANCED MANUFACTURING TECHNOLOGY DEVELOPMENT 
                   PROGRAM.

       ``(a) Program Direction.--The Secretary, through the Under 
     Secretary and the Director, shall establish an Advanced 
     Manufacturing Technology Development Program which shall 
     include advanced manufacturing systems and networking 
     projects.
       ``(b) Program Goal.--The goal of the Advanced Manufacturing 
     Technology Development Program is to create collaborative 
     multiyear technology development programs involving United 
     States industry and, as appropriate, other Federal agencies, 
     the States, worker organizations, universities, and other 
     interested persons, in order to develop, refine, test, and 
     transfer design and manufacturing technologies and associated 
     applications, including advanced computer integration, skill-
     based manufacturing systems, networking, and electronic data 
     exchange.
       ``(c) Program Components.--The Advanced Manufacturing 
     Technology Development Program shall include--
       ``(1) the advanced manufacturing research and development 
     activities of the Institute; and
       ``(2) one or more technology development testbeds within 
     the United States, selected in accordance with procedures, 
     including cost sharing, established for the Advanced 
     Technology Program 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 Technology 
     Development Program, under the coordination of the Secretary, 
     through the Director and, as appropriate, in consultation 
     with other Federal officials, 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, with an emphasis on technologies which both promote 
     United States economic competitiveness and build on and 
     expand the skills of United States workers;
       ``(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, including networks linking customer firms and 
     supplier firms;
       ``(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, 
     including both highly flexible and low-pollution 
     manufacturing technologies;
       ``(7) conduct research in advanced workplace practices 
     related to and necessary for the successful deployment of 
     advanced manufacturing technologies;
       ``(8) involve in the Advanced Manufacturing Technology 
     Development Program, to the maximum extent practicable, both 
     those United States companies which make manufacturing and 
     computer equipment and a broad range of personnel from those 
     companies which buy the equipment;
       ``(9) 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;
       ``(10) work with private industry, worker organizations, 
     the Department of Labor, technical and professional 
     societies, universities, and other interested parties to 
     develop standards for the use of advanced computer-based 
     training systems, including multimedia and interactive 
     learning technologies that assure that production workers 
     effectively learn, adapt, and utilize advanced manufacturing 
     technologies and workplace practices;
       ``(11) involve small- and medium-sized manufacturers in its 
     activities;
       ``(12) exchange information and personnel, as appropriate, 
     between the technology development testbeds and the 
     electronic networks created under this section; and
       ``(13) incorporate and experiment with source reduction 
     techniques and technologies at the testbed or testbeds, 
     consulting, as appropriate, with other Federal officials.
       ``(e) Testbed Awards.--(1) In selecting applicants to 
     receive awards under subsection (c)(2), the Secretary shall 
     give particular consideration to applications 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 and computer equipment or systems.
       ``(2) An industry-led joint research and development 
     venture applying for an award under subsection (c)(2) 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 (15 U.S.C. 278k).
       ``(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 
     worker organizations and from other Federal agencies, 
     particularly the Departments of Defense and Labor, 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) Application of Antitrust Laws.--Nothing in this 
     section shall be construed to create any immunity to any 
     civil or criminal action under any Federal or State antitrust 
     law, or to alter or restrict in any manner the applicability 
     of any Federal or State antitrust law.

     ``SEC. 304. MANUFACTURING EXTENSION PARTNERSHIP.

       ``(a) Establishment and Purpose.--There is established a 
     Manufacturing Extension Partnership (hereafter in this 
     section referred to as the `Partnership'). The Secretary, 
     acting through the Under Secretary and the Director, shall 
     implement and coordinate the Partnership in accordance with 
     an initial plan that shall be prepared and submitted to 
     Congress within 6 months after the date of enactment of this 
     title and a 5-year plan for the Partnership that shall be 
     submitted to Congress within 1 year after such date of 
     enactment. The 5-year plan shall be updated and submitted to 
     Congress annually. The purpose of the Partnership is to link 
     and strengthen the Nation's manufacturing extension centers 
     and activities in order to assist 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 and advanced workplace 
     practices.
       ``(b) Components.--The Partnership shall be a cooperative 
     effort of the Department of Commerce, the States, industry 
     and labor, nonprofit organizations, and, as appropriate, 
     other Federal agencies to provide a national system of 
     manufacturing extension centers and technical services to 
     United States companies, particularly small- and medium-sized 
     manufacturers. The Partnership shall include the following 
     components:
       ``(1) Manufacturing Outreach Centers, as authorized under 
     subsection (c);
       ``(2) Regional Centers for the Transfer of Manufacturing 
     Technology, as established under section 25 of the National 
     Institute of Standards and Technology Act (15 U.S.C. 278k), 
     and the State Technology Extension Program, as established 
     under section 26 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278l);
       ``(3) an activity, coordinated and funded by the Institute, 
     which links and supports Manufacturing Outreach Centers and 
     Regional Centers for the Transfer of Manufacturing 
     Technology, and which operates the information network 
     provided for under subsection (d) and the clearinghouse 
     system developed under subsection (e); and
       ``(4) such technology and manufacturing extension centers 
     supported by other Federal departments and agencies, States, 
     industry, and nonprofit organizations as the Secretary may 
     deem appropriate for inclusion in the Partnership.
       ``(c) Manufacturing Outreach Centers.--(1) Government and 
     private sector organizations, actively engaged in technology 
     or manufacturing extension activities, may apply to the 
     Secretary to be designated as Manufacturing Outreach Centers. 
     Eligible organizations may include Federal, State, and local 
     government agencies, their extension programs, and their 
     laboratories; small business development centers; and 
     appropriate programs run by professional and technical 
     societies, worker organizations, industrial organizations, 
     for-profit or nonprofit organizations, community development 
     organizations, State universities and other universities, 
     community colleges, and technical schools and colleges, 
     including, where appropriate, vendor-supported demonstrations 
     of production applications.
       ``(2) Any Regional Center for the Transfer of Manufacturing 
     Technology may apply to the Secretary to establish a 
     Manufacturing Outreach Center, managed by or in cooperation 
     with such Regional Center, which extends the effective 
     service area of such Regional Center. Funding for the 
     establishment and management of such Outreach Center may be 
     awarded to such Regional Center, notwithstanding the 
     restrictions of paragraph (5).
       ``(3) The Secretary shall establish terms and conditions of 
     participation and may provide financial assistance, on a 
     cost-shared basis and through competitive, merit-based review 
     processes, to nonprofit or government participants throughout 
     the United States to enable them to--
       ``(A) join the Partnership and disseminate its technical 
     and information services to United States manufacturing 
     firms, particularly small- and medium-sized firms; and
       ``(B) strengthen their direct assistance to small- and 
     medium-sized United States manufacturing firms to expand and 
     accelerate the use of modern and advanced manufacturing 
     practices.
       ``(4) If a State plan for technology extension exists in a 
     State where an applicant for financial assistance under this 
     subsection is operating or plans to operate, the applicant 
     shall demonstrate in its application that its proposal is 
     compatible with such State plan.
       ``(5) If a Manufacturing Outreach Center is in or near a 
     State which has a Regional Center for the Transfer of 
     Manufacturing Technology, the Director shall, as appropriate, 
     encourage the Outreach Center to cooperate with the Regional 
     Center in coordinating its proposals and ongoing programs to 
     serve manufacturers in the region. Manufacturing Outreach 
     Centers may not concurrently be designated as Regional 
     Centers for the Transfer of Manufacturing Technology under 
     section 25 of the National Institute of Standards and 
     Technology Act.
       ``(6) Financial assistance may be awarded under this 
     subsection for an initial period not to exceed 3 years and 
     may, subject to successful evaluation by the Institute, be 
     renewed for additional periods, not to exceed 3 years each. 
     Such assistance may not at any time exceed 50 percent of the 
     operating costs and in-kind contributions of the recipient.
       ``(d) Manufacturing Extension Information Network.--The 
     Department of Commerce shall provide for an instantaneous, 
     interactive information network to serve the Partnership, to 
     facilitate interaction among Manufacturing Outreach Centers, 
     Regional Centers for the Transfer of Manufacturing 
     Technology, and Federal agencies, and to permit the 
     collection and dissemination in electronic form, in a timely 
     and accurate manner, of information described in subsection 
     (e). Such information network shall, wherever practicable, 
     make use of existing computer networks, data bases, and 
     electronic bulletin boards. Information network arrangements, 
     including user fees and appropriate electronic access for 
     information suppliers and users, shall be addressed in the 5-
     year plan prepared under subsection (a). The Secretary shall, 
     to the extent practicable, coordinate these information 
     network activities with the relevant activities of other 
     Federal agencies, particularly the advanced manufacturing and 
     enterprise integration activities of the Department of 
     Defense.
       ``(e) Clearinghouse.--(1) The Secretary shall develop a 
     clearinghouse system, using the Institute, 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 Partnership stated in 
     subsection (a), from all available Federal sources, and where 
     appropriate from other sources, providing assistance where 
     necessary in making such information electronically available 
     and compatible with the information network established under 
     subsection (d);
       ``(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 regarding--
       ``(A) activities of Manufacturing Outreach Centers, 
     Regional Centers for the Transfer of Manufacturing 
     Technology, the State Technology Extension Program, and the 
     users of the information network;
       ``(B) domestic and international standards from the 
     Institute and private sector organizations and other export 
     promotion information, including conformity assessment 
     requirements and procedures;
       ``(C) the Malcolm Baldrige National Quality Award program, 
     and quality principles and standards;
       ``(D) manufacturing processes that minimize waste and 
     negative environmental impact;
       ``(E) advanced workplace practices that can improve 
     quality, response time, and flexibility in manufacturing;
       ``(F) federally funded technology development and transfer 
     programs;
       ``(G) responsibilities assigned to the Clearinghouse for 
     State and Local Initiatives on Productivity, Technology, and 
     Innovation under section 102;
       ``(H) how to access data bases and services;
       ``(I) skills training, particularly for production workers, 
     that is available through trade and professional 
     organizations, federally supported programs, State resources, 
     private industry, or other organizations; and
       ``(J) other subjects relevant to the ability of companies 
     to manufacture and sell competitive products throughout the 
     world.
       ``(f) Principles.--In carrying out this section, the 
     Department of Commerce shall take into consideration the 
     following principles:
       ``(1) The Partnership and the information network provided 
     for under subsection (d) 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 Partnership and the information network shall 
     utilize and leverage, to the extent practicable, existing 
     organizations, data bases, electronic networks, facilities, 
     and capabilities, and shall be designed to complement rather 
     than supplant State and local programs.
       ``(3) The Partnership should, to the extent practicable, 
     involve key stakeholders at all levels in the planning and 
     governance of modernization strategies; concentrate on 
     assisting local clusters of firms; assist rural as well as 
     urban manufacturers; promote collaborative learning and 
     cooperative action among manufacturers; link industrial 
     modernization programs tightly to existing and future Federal 
     training initiatives, including those for youth 
     apprenticeship programs and for assisting other workers; 
     encourage small firms to seek modernization services by 
     working with major manufacturers to strengthen and coordinate 
     their supplier assessment, certification, and development 
     programs; encourage small firms, as appropriate, to select 
     manufacturing equipment and practices which build upon and 
     expand the skills of their employees; identify and honor best 
     practices by firms and the programs that support them, 
     including both technology and workplace practices; provide 
     funding based on performance and ensure rigorous evaluation 
     of extension services; as appropriate, coordinate Federal 
     programs that support manufacturing modernization; work with 
     Federal, State, local, and private organizations so that 
     Manufacturing Outreach Centers and Regional Centers for the 
     Transfer of Manufacturing Technology can provide referrals to 
     other important business services, such as assistance with 
     financing, training, and exporting, and contribute to local 
     business climates supportive of high-performance 
     manufacturing.
       ``(4) The Partnership and the information network provided 
     for under subsection (d) shall be subject to all applicable 
     provisions of law for the protection of trade secrets and 
     business confidential information.
       ``(5) Local or regional needs should determine the 
     management structure and staffing of the Manufacturing 
     Outreach Centers. The Partnership shall strive for 
     geographical balance and for balance between urban and rural 
     recipients, with the ultimate goal of access for all United 
     States manufacturers.
       ``(6) Manufacturing Outreach Centers should have the 
     capability to deliver outreach services directly to 
     manufacturers; actively work with, rather than supplant, the 
     private sector; help firms assess needs regarding technology, 
     workplace practices, and training; and to the extent 
     practicable, maximize the exposure of manufacturers to 
     demonstrations of modern technologies in use.
       ``(7) Manufacturing Outreach Centers shall focus, where 
     possible, on the development and deployment of flexible 
     manufacturing technologies and practices applicable to both 
     defense and commercial applications and on opportunities to 
     modernize operations in ways which improve productivity, 
     reduce waste and pollution, and increase energy efficiency.
       ``(8) The Department of Commerce shall develop mechanisms 
     for--
       ``(A) soliciting the perspectives of manufacturers using 
     the services of the Manufacturing Outreach Centers and 
     Regional Centers for the Transfer of Manufacturing 
     Technology;
       ``(B) assisting in the training of technology extension 
     agents and in helping them disseminate information on best 
     available manufacturing technologies, including technologies 
     for source reduction, and workplace practices; and
       ``(C) rigorously evaluating the effectiveness of the 
     Manufacturing Outreach Centers and other components of the 
     Partnership.
       ``(9) Nothing in this section shall be construed as 
     limiting or interfering with any collective bargaining 
     agreement. Regional Centers for the Transfer of Manufacturing 
     Technology and Manufacturing Outreach Centers shall, as 
     practicable, respect any collective bargaining agreement 
     which is in force at a client firm.
       ``(g) Dissemination of Source Reduction and Energy 
     Efficiency Technologies.--(1) The Regional Centers for the 
     Transfer of Manufacturing Technology and Manufacturing 
     Outreach Centers shall make available source reduction and 
     energy efficiency assessments to their interested client 
     companies. These assessments shall assist such interested 
     client companies in identifying opportunities for energy 
     conservation and source reduction, and thus reduce operating 
     costs, through either improvement in manufacturing processes 
     or the purchase of new equipment.
       ``(2) The Secretary is authorized to work with other 
     appropriate Federal officials and other parties to provide 
     employees of Regional Centers and Outreach Centers with the 
     training needed to carry out the assessments specified in 
     paragraph (1).

     ``SEC. 305. INDUSTRY-LED MANUFACTURING ADVISORY COMMITTEE.

       ``(a) Establishment.--The Director of the Office of Science 
     and Technology Policy, after consultation with the Secretary 
     and other appropriate Federal officials, shall establish a 
     Manufacturing Advisory Committee (hereafter in this section 
     referred to as the `Committee'), led by United States 
     industry officials, to provide to the Director of the Office 
     of Science and Technology Policy advice and, as appropriate, 
     guidance to Federal manufacturing programs.
       ``(b) Functions.--The Committee shall--
       ``(1) collect and analyze information on the range of 
     factors which determine the success of United States-based 
     manufacturing industries, and particularly factors regarding 
     the development and deployment of advanced manufacturing 
     technologies and the application of best manufacturing 
     practices;
       ``(2) identify areas where appropriate cooperation between 
     the Federal Government and industry and labor, including 
     Government support for industry-led joint research and 
     development ventures and for manufacturing extension 
     activities, would enhance United States industrial 
     competitiveness, and provide advice and guidance for such 
     cooperative efforts;
       ``(3) provide guidance on what Federal policies and 
     practices are necessary to strengthen United States-based 
     manufacturing, particularly Federal policies and practices 
     regarding research budgets, interagency coordination and 
     initiatives, technology transfer, regulation, and 
     procurement; and
       ``(4) generally develop recommendations for guiding Federal 
     agency and interagency activities related to United States-
     based manufacturing.
       ``(c) Membership and Procedures.--(1) The Committee shall 
     be composed of 16 members, of whom--
       ``(A) 6 members shall be the Director of the Office of 
     Science and Technology Policy, the Secretary, the Secretary 
     of Defense, the Secretary of Energy, the Secretary of Labor, 
     and the Director of the National Science Foundation, or their 
     designees; and
       ``(B) 10 members shall, within 120 days after the date of 
     enactment of this title, be appointed by the President, 
     acting through the Director of the Office of Science and 
     Technology Policy, from the private manufacturing industry, 
     worker organizations, technical and professional societies, 
     State technology agencies, and academia.

     At least two of the members appointed under subparagraph (B) 
     shall be from small business.
       ``(2) The Director of the Office of Science and Technology 
     Policy or such Director's designee shall chair the Committee.
       ``(3) The chairman shall call the first meeting of the 
     Committee within 30 days after the appointment of members is 
     completed.
       ``(4) The Committee may use such personnel detailed from 
     Federal agencies as may be necessary to enable it to perform 
     its functions.
       ``(5) Nine members of the Committee shall constitute a 
     quorum for the transaction of business.
       ``(6) Members of the Committee, other than full-time 
     employees of the Federal Government, while attending meetings 
     of the Committee or otherwise performing duties of the 
     Committee while away from their homes or regular places of 
     business, shall be allowed travel expenses in accordance with 
     subchapter I of chapter 57 of title 5, United States Code.
       ``(7) The Committee shall submit a report of its activities 
     once every year after its establishment to the President, the 
     Committee on Commerce, Science, and Transportation of the 
     Senate, and the Committee on Science, Space, and Technology 
     of the House of Representatives.
       ``(8) The Committee, as appropriate, shall work with the 
     Commerce Technology Advisory Board established under section 
     113 of this Act and with other appropriate Federal advisory 
     mechanisms to ensure integrated Federal-private consideration 
     of technology and manufacturing policies and programs.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for the fiscal years 1994 and 
     1995.''.

     SEC. 213. 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 of 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 work organization processes 
     designed to improve manufacturing quality, productivity, and 
     practices, and to promote sustainable development, including 
     engineering design, quality assurance, concurrent 
     engineering, continuous process production technology, energy 
     efficiency, waste minimization, design for recyclability or 
     parts reuse, 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, 17, 18, 19, 20, and 22, 
     as sections 107 through 112, respectively;
       (5) by inserting immediately after section 113 (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'' and inserting in lieu thereof 
     ``section 101''; and by striking ``section 5(b)(1)'' and 
     inserting in lieu thereof ``section 101(b)(1)'';
       (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(a)'' and inserting 
     in lieu thereof ``section 102(a)''; by striking ``section 
     6(b)'' and inserting in lieu thereof ``section 102(b)''; and 
     by striking ``section 6(c)(3)'' and inserting in lieu thereof 
     ``section 102(c)(3)'';
       (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 201(i) (as redesignated by paragraph (6) of 
     this subsection)--
       (A) by inserting ``loan, lease, or'' immediately after 
     ``may''; and
       (B) by inserting ``Actions taken under this subsection 
     shall not be subject to Federal requirements on the disposal 
     of property.'' immediately after ``activities.'';
       (12) in section 202(b) (as redesignated by paragraph (6) of 
     this subsection) by striking ``section 14(a)(1)(B) (i), (ii), 
     and (iv)'' and inserting in lieu thereof ``section 
     204(a)(1)(B) (i), (ii), and (iv)'';
       (13) in section 204(a)(1) (as redesignated by paragraph (6) 
     of this subsection) by striking ``section 12'' and inserting 
     in lieu thereof ``section 202'';
       (14) 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'';
       (15) in section 206 (as redesignated by paragraph (7) of 
     this subsection)--
       (A) by striking ``section 12(d)(2)'' in the introductory 
     matter of subsection (a) and inserting in lieu thereof 
     ``section 202(d)(2)'';
       (B) by striking ``section 11(b)'' in subsection (a)(2) and 
     inserting in lieu thereof ``section 201(b)''; and
       (C) by striking ``section 6(d)'' in subsection (b) and 
     inserting in lieu thereof ``section 102(d)'';
       (16) by adding at the end of section 201 (as redesignated 
     by paragraph (5) 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, 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.''; and
       (17) in section 101(c) (as redesignated by paragraph (2) of 
     this subsection), by striking ``and'' at the end of paragraph 
     (14); by striking the period at the end of paragraph (15) and 
     inserting ``; and''; and by adding at the end the following 
     new paragraph:
       ``(16) engage in joint projects with any person or persons 
     on matters within the authority of the Department of 
     Commerce, accept `partnership fellows' and receive cash 
     donations in the course of such joint projects, and in 
     conjunction with the planning and operation of such joint 
     projects hold meetings of matters of mutual interest with 
     groups of interested persons without regard to any other 
     provision of law, in order to protect sensitive information 
     about United States industry and to assure industry 
     participation in such joint projects.''.

     SEC. 214. MANUFACTURING TECHNOLOGY CENTERS.

       (a) Amendments.--(1) Section 25(a) of the National 
     Institute of Standards and Technology Act (15 U.S.C. 278k(a)) 
     is amended by striking ``and'' at the end of paragraph (4), 
     by striking the period at the end of paragraph (5) and 
     inserting in lieu thereof a semicolon, and by inserting 
     immediately after paragraph (5) the following new paragraphs:
       ``(6) the active dissemination of information on advanced 
     workplace practices and available education and training 
     programs, and the encouragement of companies to train workers 
     in the effective use of modern and advanced manufacturing 
     technologies; and
       ``(7) demonstration projects in which Centers work with 
     States, local governments, community development 
     organizations, worker and business organizations, and 
     community banks to create a business climate supportive of 
     high-performance manufacturing.''.
       (2) Section 25(b) of the National Institute of Standards 
     and Technology Act (15 U.S.C. 278k(b)) is amended by striking 
     ``and'' at the end of paragraph (2), by redesignating 
     paragraph (3) as paragraph (4), and by inserting immediately 
     after paragraph (2) the following new paragraph:
       ``(3) assessments of client firms' modernization needs, 
     assistance in implementing quality processes, and, where 
     needed, cooperation with training institutions to ensure that 
     employees, particularly production workers, receive training 
     in the most effective use of manufacturing technology and 
     advanced workplace practices; and''.
       (3) Section 25(c)(5) of the National Institute of Standards 
     and Technology Act (15 U.S.C. 278k(c)(15)) is amended by 
     striking ``which are designed'' and all that follows through 
     the period at the end 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.''.
       (4) Section 25 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278k et seq.) is amended by adding 
     at the end the following new subsection:
       ``(e) 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) Services 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 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.
       ``(2) Assistance to small- and medium-sized firms in fields 
     of manufacturing other than the field or fields originally 
     served by the Center.
       ``(3) Industrial service facilities which provide tools to 
     help companies with the low-cost, low-volume, rapid 
     prototyping of a range of new products and the refinement of 
     the manufacturing and process technologies necessary to make 
     such products.
       ``(4) Programs to assist small- and medium-sized 
     manufacturers and their employees, particularly production 
     workers, in the Center's region to learn and apply the 
     technologies, techniques, and processes associated with 
     systems management technology, electronic commerce, pollution 
     minimization, or the improvement of manufacturing 
     productivity.
       ``(5) Industry-led 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.''.
       (b) Effective Date.--The effective date of section 25(c)(5) 
     of the National Institute of Standards and Technology Act, as 
     amended by subsection (a) of this section, is August 23, 
     1988.

     SEC. 215. STATE TECHNOLOGY EXTENSION PROGRAM.

       (a) Establishment.--Section 26(a) of the National Institute 
     of Standards and Technology Act (15 U.S.C. 278l(a)) is 
     amended--
       (1) by inserting immediately after ``(a)'' the following 
     new sentence: ``There is established within the Institute a 
     State Technology Extension Program.''; and
       (2) by inserting ``through that Program'' immediately after 
     ``technical assistance''.
       (b) Assistance Provided by Program.--Section 26 of the 
     National Institute of Standards and Technology Act (15 U.S.C. 
     278l) is amended by adding at the end the following new 
     subsection:
       ``(c) In addition to the general authorities listed in 
     subsection (b), the State Technology Extension Program also 
     shall, through merit-based competitive review processes and 
     as authorizations and appropriations permit--
       ``(1) make awards to States and conduct workshops, pursuant 
     to section 5121(b) of the Omnibus Trade and Competitiveness 
     Act of 1988 (15 U.S.C. 278l note) in order to help States 
     improve their planning and coordination of technology 
     extension activities;
       ``(2) assist States, particularly States which historically 
     have had no manufacturing or technology extension programs or 
     only small programs, to plan, develop, and coordinate such 
     programs and to help bring those State programs to a level of 
     performance where they can apply successfully for awards to 
     establish Manufacturing Outreach Centers, Regional Centers 
     for the Transfer of Manufacturing Technology, or both;
       ``(3) support industrial modernization demonstration 
     projects to help States create networks among small 
     manufacturers for the purpose of facilitating technical 
     assistance, group services, and improved productivity and 
     competitiveness;
       ``(4) support State efforts to develop and test innovative 
     ways to help small- and medium-sized manufacturers improve 
     their technical capabilities, including, as appropriate, 
     State contracts with private-sector technology transfer 
     companies to provide technology assistance and development 
     services that are beyond the current capacity of a given 
     State's industrial extension activities;
       ``(5) support State efforts designed to help small 
     manufacturers in rural as well as urban areas improve and 
     modernize their technical capabilities, including, as 
     appropriate, interstate efforts to achieve such end;
       ``(6) support State efforts to assist interested small 
     defense manufacturing firms to convert their production to 
     nondefense or dual-use purposes;
       ``(7) support worker technology education programs in the 
     States at institutions such as research universities, 
     community colleges, technical and professional societies, 
     labor education centers, labor-management committees, and 
     worker organizations in production technologies critical to 
     the Nation's future, with an emphasis on high-performance 
     work systems, the skills necessary to use advanced 
     manufacturing system well, and best production practice; and 
     support on-the-job training programs in the States to build 
     and enhance the skills of employees, particularly production 
     workers, in small- and medium-sized companies; and
       ``(8) help States develop programs to train personnel who 
     in turn can provide technical skills to managers and workers 
     of manufacturing firms.''.

     SEC. 216. AMERICAN WORKFORCE QUALITY.

       (a) Workforce Activities.--In addition to existing 
     responsibilities and authorities prescribed by law, the 
     Secretary, through the Director and after consultation with 
     the Secretary of Labor, shall direct Regional Centers for the 
     Transfer of Manufacturing Technology and Manufacturing 
     Outreach Centers to utilize, when appropriate, their 
     expertise and capability to assist managers and workers in 
     United States manufacturing firms in effectively utilizing 
     and operating advanced manufacturing technologies and modern 
     technologies--
       (1) by making available assessments of the needs of United 
     States manufacturing firms for worker training in the 
     effective utilization and operation of specific technologies 
     the firms have adopted or are planning to adopt;
       (2) by making available to United States manufacturing 
     firms information on commercially and publicly provided 
     worker training services, including those provided by United 
     States sources of technologies, in the effective utilization 
     and operation of specific technologies the firms have adopted 
     or are planning to adopt; and
       (3) by providing information to client firms and their 
     workers to enable them effectively to utilize and operate 
     specific technologies that the firms have adopted or plan to 
     adopt.
       (b) Workforce Analysis and Information Dissemination.--In 
     addition to existing responsibilities and authorities 
     prescribed by law, the Secretary, through the Director and in 
     consultation with the Secretary of Labor and other 
     appropriate Federal officials and with leaders of industry 
     and labor, shall assist managers and other workers in United 
     States manufacturing firms in effectively utilizing and 
     operating advanced manufacturing technologies and modern 
     technologies--
       (1) by establishing and managing a clearinghouse for 
     information, to be available through an appropriate entity to 
     the Regional Centers for the Transfer of Manufacturing 
     Technology, to the Manufacturing Outreach Centers when they 
     are established, to other technology training entities, or 
     directly to United States manufacturing firms, on the best 
     available training material and services for the effective 
     utilization and operation of specific advanced and modern 
     technologies;
       (2) by encouraging United States providers of advanced and 
     modern technologies for manufacturing firms to develop 
     training material specifically designed for the managers and 
     other workers responsible for utilizing and operating such 
     technologies; and
       (3) by establishing as an important criterion in the 
     assessment of advanced and modern technologies the 
     availability of training material specifically designed for 
     the managers and other workers responsible for utilizing and 
     operating such technologies.

     SEC. 217. REPORT ON OPTIONS FOR ACCELERATING THE ADOPTION OF 
                   NEW MANUFACTURING EQUIPMENT.

       Within 1 year after the date of enactment of this Act, the 
     Secretary shall submit to Congress a report on--
       (1) the degree to which manufacturing enterprises in the 
     United States have difficulty obtaining financing for the 
     purpose of purchasing new equipment and modernizing 
     operations;
       (2) the policies and practices followed in other 
     industrialized countries to help manufacturing firms obtain 
     financing for modernization; and
       (3) the advantages, disadvantages, and costs of major 
     options by which the Federal Government might help stimulate 
     the flow of capital to manufacturers and thus accelerate 
     industrial modernization, including--
       (A) creation of a Government-sponsored enterprise to 
     stimulate the flow of capital to manufacturing;
       (B) increasing technical advice to banks and other 
     financial institutions, perhaps through the National 
     Manufacturing Outreach Program, in order to increase their 
     ability to judge whether or not individual manufacturers have 
     sound modernization plans;
       (C) cooperation between extension activities supported 
     under the Manufacturing Extension Partnership and 
     manufacturing equipment leasing firms in order to provide 
     manufacturers with additional information or equipment 
     leasing options; and
       (D) tax incentives.
     Subtitle B--National Science Foundation Manufacturing Programs

     SEC. 221. NATIONAL SCIENCE FOUNDATION MANUFACTURING 
                   ACTIVITIES.

        (a) In General.--The Director of the National Science 
     Foundation, after, as appropriate, consultation with the 
     Secretary, the Under Secretary, and the Director, shall--
       (1) work with United States industry to identify areas of 
     research in manufacturing technologies and practices that 
     offer the potential to improve United States productivity, 
     competitiveness, and employment;
       (2) support research at United States universities to 
     improve manufacturing technologies and practices; and
       (3) work with the Technology Administration of the 
     Department of Commerce and the Institute and, as appropriate, 
     other Federal agencies to accelerate the transfer to United 
     States industry of manufacturing research and innovations 
     developed at universities.
        (b) Engineering Research Centers and Industry/University 
     Cooperative Research Centers.--The Director of the National 
     Science Foundation shall strengthen and expand the number of 
     Engineering Research Centers and strengthen and expand the 
     Industry/University Cooperative Research Centers Program with 
     the goals of increasing the engineering talent base versed in 
     technologies and workplace practices critical to the Nation's 
     future, with emphasis on advanced manufacturing, and of 
     advancing fundamental engineering knowledge in these 
     technologies. At least one Engineering Research Center shall 
     have a research and education focus on the concerns of 
     traditional manufacturers, including small- and medium-sized 
     firms that are trying to modernize their operations. Awards 
     under this subsection shall be made on a competitive, merit 
     review basis. Such awards 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) Graduate Traineeships.--The Director of the National 
     Science Foundation, in consultation with the Secretary, may 
     establish a program to provide traineeships to graduate 
     students at institutions of higher education within the 
     United States who choose to pursue masters or doctoral 
     degrees in manufacturing or industrial engineering.
        (d) Manufacturing Managers in the Classroom Program.--The 
     Director of the National Science Foundation, in consultation 
     with the Secretary, may establish a program to provide 
     fellowships, on a cost-shared basis, to individuals from 
     industry with experience in manufacturing to serve for 1 or 2 
     years as instructors in manufacturing at 2-year community and 
     technical colleges in the United States. In selecting 
     fellows, the Director of the National Science Foundation 
     shall place special emphasis on supporting individuals who 
     not only have expertise and practical experience in 
     manufacturing but who also will work to foster cooperation 
     between 2-year colleges and nearby manufacturing firms.
       (e) Programs to Teach Total Quality Management.--The 
     Director of the National Science Foundation, in consultation 
     with the Secretary, the Under Secretary, and the Director, 
     may establish a program to develop innovative curricula, 
     courses, and materials for use by institutions of higher 
     education for instruction in total quality management and 
     related management practices, in order to help improve the 
     productivity of United States industry.
                    TITLE III--CRITICAL TECHNOLOGIES

     SEC. 301. FINDINGS.

       The Congress finds that--
       (1) the rapid, effective use of advanced technologies in 
     the design and production of products is a key determinant of 
     economic competitiveness;
       (2) investment in the development and adoption of advanced 
     technology contributes significantly to long-term economic 
     growth and employment;
       (3) the governments of our most successful competitor 
     nations in the global marketplace have created supportive 
     structures and programs that have been effective in helping 
     their domestic industries increase their global market 
     shares;
       (4) agriculture and aerospace are two examples of 
     industries that have achieved commercial success with strong 
     support from the United States Government; and
       (5) the United States Government must promote and 
     facilitate the creation, development, and adoption of 
     advanced technologies, including skills-based production 
     technologies, to ensure long-term economic prosperity for the 
     United States.

     SEC. 302. DEVELOPMENT OF PLAN FOR THE ADVANCED TECHNOLOGY 
                   PROGRAM.

       The Secretary, acting through the Under Secretary and the 
     Director, shall, within 6 months after the date of enactment 
     of this Act, submit to Congress a plan for the expansion of 
     the Advanced Technology Program established under section 28 
     of the National Institute of Standards and Technology Act (15 
     U.S.C. 278n), with specific consideration given to--
       (1) closer coordination and cooperation with the Advanced 
     Research Projects Agency and other Federal research and 
     development agencies as appropriate;
       (2) establishment of temporary staff positions that can be 
     filled by industrial or technical experts for a period of 1 
     to 2 years;
       (3) ensuring that the Program will have a meaningful impact 
     on the commercialization of a broad range of new technologies 
     and on the refinement of critical manufacturing technologies;
       (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; and
       (5) administrative steps necessary for Program support of 
     large-scale industry-led consortia similar to, or possibly 
     eventually including, the Semiconductor Manufacturing 
     Technology Institute.

     SEC. 303. ADVANCED TECHNOLOGY PROGRAM SUPPORT OF LARGE-SCALE 
                   JOINT VENTURES.

       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) In addition to the general authority under this 
     section to provide financial assistance to joint ventures, 
     the Secretary, through the Director, also may, as permitted 
     by levels of authorizations and appropriations, provide 
     financial support to large-scale joint ventures requesting 
     $20 million or more a year in Department funds. Any such 
     support shall be subject to the matching funds requirements 
     of subsection (b)(1)(B)(ii), except that the Secretary may 
     provide assistance to such large-scale joint ventures for up 
     to 7 years. The Secretary may work with industrial groups to 
     develop such proposed large-scale joint ventures and shall 
     give preference to proposals which represent a broad spectrum 
     of companies for a given industry and which focus either on 
     speeding the commercialization of important new technologies 
     or on accelerating the development, testing, and deployment 
     of valuable new process technologies and workplace practices. 
     The Secretary and Director, as appropriate, shall obtain 
     independent technical review of industry proposals submitted 
     under this subsection.''.

     SEC. 304. TECHNICAL AMENDMENTS.

       (a) Amendments to National Institute of Standards and 
     Technology Act.--Section 28 of the National Institute of 
     Standards and Technology Act (15 U.S.C. 278n), as amended by 
     section 303 of this Act, is further amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(B), by striking ``or contracts'' and 
     inserting in lieu thereof ``contracts, and other 
     transactions'';
       (B) in paragraph (1)(B)(ii), by striking ``provision of a 
     minority share of the cost of such joint ventures for up to 5 
     years'' and inserting in lieu thereof ``the option of 
     providing either a minority share of the total cost of such 
     joint ventures for up to 5 years, or only direct costs (and 
     not indirect costs, profits, or management fees), for up to 5 
     years'';
       (C) in paragraph (2), by striking ``and cooperative 
     agreements'' and inserting in lieu thereof ``cooperative 
     agreements, and other transactions'';
       (D) by striking ``and'' at the end of paragraph (3);
       (E) by striking the period at the end of paragraph (4) and 
     inserting in lieu thereof ``; and''; and
       (F) by adding at the end the following new paragraph:
       ``(5) use other transactions authority under this 
     subsection only when the Secretary, acting through the 
     Director, determines that standard contracts, grants, or 
     cooperative agreements are not feasible or appropriate, and 
     only when other transaction instruments incorporate terms and 
     conditions that reflect the use of generally accepted 
     commercial accounting and auditing practices.''; and
       (2) by adding at the end the following new subsections:
       ``(l) 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.
       ``(m) The Secretary, Under Secretary, and Director may 
     organize or attend workshops or use other mechanisms to 
     encourage the leaders of specific United States industrial 
     sectors to--
       ``(1) identify which precompetitive, generic technologies 
     will be most critical in the future to each such sector and, 
     as appropriate, encourage the formation of broad-based 
     industry-led joint ventures which seek to develop those 
     technologies; and
       ``(2) analyze which additional steps may be necessary to 
     enable each sector to acquire, deploy, and finance needed 
     technologies in a timely fashion.''.
       (b) Amendment to American Technology Preeminence Act of 
     1991.--Section 201(d) of the American Technology Preeminence 
     Act of 1991 (Public Law 102-245; 106 Stat. 19) is amended by 
     inserting ``, except in the case of the amendment made by 
     subsection (c)(6)(A)'' immediately after ``enactment of this 
     Act''.

     SEC. 305. TECHNOLOGY FINANCING PILOT PROGRAM.

       (a) Findings.--Congress finds and declares the following:
       (1) In recent years, United States technology firms appear 
     to have had increasing difficulty financing the development 
     and early-stage commercialization of important new critical 
     civilian technologies. Venture capital is less available than 
     in past years, banks appear less willing to provide loans, 
     and medium-sized as well as small companies often have 
     difficulty under current capital market conditions financing 
     promising long-term technology projects.
       (2) Difficulties in obtaining financing particularly hurts 
     those technology firms which face foreign competitors which 
     have received substantial direct or indirect financial help 
     from their governments.
       (3) The Nation would benefit from a technology financing 
     pilot program to experiment with assisting private-sector 
     venture capital entities which in turn can select and support 
     the most promising and valuable long-term United States 
     technology projects.
       (b) In General.--(1) As a pilot program, the Secretary, 
     through the Under Secretary and in consultation with the 
     Administrator of the Small Business Administration (hereafter 
     in this section referred to as the ``Administrator''), may 
     license and, to the extent provided in advance in 
     appropriations Acts and in accordance with the plan developed 
     under subsection (e), financially assist private-sector 
     entities to be known as civilian technology investment 
     companies, for the purpose of stimulating and expanding the 
     flow of private capital to eligible technology firms and 
     joint ventures of eligible technology firms.
       (2)(A) Each civilian technology investment company licensed 
     under this section may provide venture capital and loans to 
     eligible technology firms and joint ventures in such manner 
     and under such terms as the licensee may fix in accordance 
     with regulations of the Secretary. Civilian technology 
     investment companies may provide venture capital and loans 
     directly or in cooperation with other investors.
       (B) Each civilian technology investment company shall have 
     authority to borrow money and to issue its debenture bonds, 
     promissory notes, or other obligations under such general 
     conditions and subject to such limiations and regulations as 
     the Secretary may prescribe.
       (3) In order to encourage the formation and growth of 
     civilian technology investment companies pursuant to this 
     section, the Secretary is authorized, when funds are 
     previously made available in appropriations Acts, to--
       (A) purchase, or guarantee the timely payment of up to 100 
     percent of principal and interest as scheduled on, debentures 
     issued by such companies, on such terms and conditions as the 
     Secretary deems appropriate pursuant to regulations issued 
     under subsection (e); and
       (B) purchase nonparticipating or participating, nonvoting 
     preferred securities and issue trust certificates 
     representing ownership of all or part of such preferred 
     securities.
       (4) Guarantees and purchases of debentures and preferred 
     securities under this subsection shall be made on such terms 
     and conditions as are necessary to ensure that the cost of 
     the program established under this section shall not exceed 
     15 percent of its corresponding credit authority in any 
     fiscal year. For purposes of this paragraph, the term 
     ``cost'' shall have the same meaning given such term in 
     section 502(5) of the Federal Credit Reform Act of 1990, and 
     the term ``credit authority'' shall have the same meaning 
     given such term in section 3(10) of the Congressional Budget 
     Act of 1974.
       (c) Purposes.--The Secretary shall require that any 
     civilian technology investment company licensed and assisted 
     under this section shall--
       (1) focus primarily on providing patient early-stage 
     capital, either loans or equity investments, to eligible 
     technology firms in the United States, including joint 
     ventures of eligible firms, in order to help those firms 
     finance and accelerate the development and early-stage 
     commercialization of critical civilian technologies;
       (2) support critical civilian technology projects, 
     particularly those undertaken by eligible technology firms 
     whose net worth is $50,000,000 or less;
       (3) demonstrate to the Secretary credible procedures for 
     ensuring that investments are made in critical technology 
     projects for which eligible firms cannot obtain necessary 
     financing solely through commercial capital markets; and
       (4) demonstrate to the Secretary working relationships with 
     either the Institute, universities, research bodies, 
     technology transfer centers, or other organizations that can 
     assist such licensee to identify and evaluate projects to be 
     supported under this section.
       (d) Payments.--Amounts received by the Secretary from the 
     payment of dividends, any profit allocation, and the 
     redemption of securities pursuant to this section, and fees 
     paid to the United States by a civilian technology investment 
     company licensed pursuant to this section, shall be deposited 
     in an account established by the Secretary and shall be 
     available solely for carrying out this section, to the extent 
     provided in advance in appropriations Acts.
       (e) Operating Plan; Effective Date; and Evaluation.--(1) 
     The Secretary, acting through the Under Secretary and in 
     coordination with the Administrator, and in consultation with 
     other appropriate Federal officials, the States, industry, 
     the financial community, and other appropriate parties, shall 
     prepare and submit to Congress on or before January 1, 1994, 
     an operating plan to carry out this section. In preparing 
     such plan, the Secretary shall consider and evaluate 
     approaches to achieving the purposes of this section and 
     shall develop recommendations, as appropriate, to fulfill 
     this section's objective to help technology firms in the 
     United States to develop and commercialize critical civilian 
     technologies. Such evaluations and recommendations shall be 
     included in the plan submitted to Congress under this 
     subsection.
       (2) The Secretary, in consultation with the Administrator, 
     shall promulgate such regulations as may be necessary to 
     carry out the provisions of this section and may contract 
     with other agencies for administrative services to help carry 
     out this section.
       (3) Except for the requirement set forth in paragraph (1), 
     the provisions of this section shall not take effect until 
     October 1, 1994.
       (4) After appropriations are provided for the pilot project 
     authorized under this section, the Secretary, after 
     consultation with the Administrator, shall evaluate annually 
     the effectiveness of the program and submit an annual report 
     to appropriate committees of Congress on the findings 
     resulting from such evaluation. Such report shall contain, on 
     a confidential basis, appendices which include, but are not 
     necessarily limited to, the type and amount of assistance 
     provided to licensees under this section, key characteristics 
     of licensees, the number and size in net worth of the 
     technology firms and joint ventures assisted by each 
     licensee, the amount of assistance provided to each 
     technology firm or joint venture, and the types of technology 
     each such technology firm or joint venture is developing and 
     commercializing.
       (f) Definitions.--As used in this section, the term--
       (1) ``critical civilian technology'' means a technology not 
     exclusively military which is identified in one or more of 
     the biennial national critical technologies reports required 
     under section 603 of the National Science and Technology 
     Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
     6683); and
       (2) ``eligible technology firm'' means a company--
       (A) which meets the requirements of section 28(d)(9) of the 
     National Institute of Standards and Technology Act (15 U.S.C. 
     278n(d)(9)); and
       (B) whose principal business is the development of products 
     and services based on critical civilian technologies.

     SEC. 306. TECHNOLOGY MONITORING AND COMPETITIVENESS 
                   ASSESSMENT.

       Section 101(e) of the Stevenson-Wydler Technology 
     Innovation Act of 1980, as redesignated by section 213(b)(2) 
     of this Act, is amended to read as follows:
       ``(e) Office of Technology Monitoring and Competitiveness 
     Assessment.--(1) The Secretary, through the Under Secretary, 
     shall establish within the Technology Administration an 
     Office of Technology Monitoring and Competitiveness 
     Assessment, to collect, evaluate, assess, and disseminate 
     information on--
       ``(A) foreign science and technology, specifically 
     information assessing foreign capabilities relative to the 
     United States;
       ``(B) policies and programs used by foreign governments and 
     industries to develop and apply economically important 
     critical technologies, how these policies and programs 
     compare with public and private activities in the United 
     States, and the effects that these foreign policies and 
     programs have on the competitiveness of United States 
     industry; and
       ``(C) the way in which the economic competitiveness of 
     United States industry can be enhanced through Federal 
     programs, including Department of Commerce programs, and 
     evaluations of the effectiveness of Federal technology 
     programs in helping to promote United States industrial 
     competitiveness and economic growth.
       ``(2) Based on the information gathered under paragraph 
     (1), the President, with the assistance of the Secretary, 
     shall submit to Congress an annual report on United States 
     technology and competitiveness analyzing the condition of 
     United States technology relative to major trading partners, 
     key trends in foreign technology and competitiveness policies 
     and targeting, and the degree to which Federal programs are 
     helping the United States to stay competitive with other 
     countries and create domestic employment opportunities.
       ``(3) The Office of Technology Monitoring and 
     Competitiveness Assessment, in cooperation with the National 
     Technical Information Service, is authorized to--
       ``(A) act as a focal point within the Federal Government 
     for the collection and dissemination, including electronic 
     dissemination, of information on foreign process and product 
     technologies, including information collected under the 
     Japanese Technical Literature Program;
       ``(B) work and, as appropriate, enter into cooperative 
     arrangements with sector-specific industry trade associations 
     or consortia to define the information desired by industry;
       ``(C) compile and make available the extensive foreign 
     technology monitoring and assessment information already 
     collected and analyzed by the Federal Government;
       ``(D) as appropriate, enter into controlled access 
     agreements with other Federal agencies to fill the industry's 
     information needs;
       ``(E) act as an electronic clearinghouse for this 
     information or otherwise provide for this function;
       ``(F) direct and fund the collection of additional 
     information;
       ``(G) direct and fund analysis of foreign research and 
     development activities, technical capabilities, workplace 
     practices, particularly in technical areas where the United 
     States is considered to be at par or lagging foreign 
     capabilities;
       ``(H) establish a program to identify technical areas 
     needing a full-scale technical evaluation, and provide, on a 
     cost-shared basis to private sector or government-industry 
     joint ventures, grants to conduct the evaluation;
       ``(I) establish and administer a fellowship program to 
     support Technology Fellows in those countries that are major 
     competitors of the United States in critical technologies to 
     collect and provide initial analysis of information on 
     foreign science and technology capabilities; and
       ``(J) work with the Department of State to place technical 
     experts from the Institute and other Federal laboratories 
     into United States embassies to serve as technology attaches 
     and counselors.''.

     SEC. 307. COMMERCE TECHNOLOGY ADVISORY BOARD.

       Title I of the Stevenson-Wydler Technology Innovation Act 
     of 1980 (as amended by title II of this Act) is further 
     amended by adding at the end the following new section:

     ``SEC. 113. COMMERCE TECHNOLOGY ADVISORY BOARD.

       ``(a) Establishment.--There is established a Commerce 
     Technology Advisory Board (hereafter in this section referred 
     to as the `Advisory Board'), the purpose of which is to 
     advise the Secretary, Under Secretary, and Director regarding 
     ways in which to--
       ``(1) promote the development and rapid application of 
     advanced commercial technologies, including 
     advancedmanufacturing technologies such as skill-based 
     production technologies;
       ``(2) strengthen the programs of the Technology 
     Administration; and
       ``(3) generally improve the global competitiveness of 
     industries within the United States.
       ``(b) Composition.--The Advisory Board shall be composed of 
     at least 17 members, appointed by the Under Secretary from 
     among individuals who, because of their experience and 
     accomplishments in technology development, business 
     development, 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 one member to serve as chairman. 
     Membership of the Advisory Board shall be composed of--
       ``(1) representatives of--
       ``(A) United States small businesses;
       ``(B) other United States businesses;
       ``(C) research universities and independent research 
     institutes;
       ``(D) State and local government agencies involved in 
     industrial extension;
       ``(E) national laboratories;
       ``(F) industrial, worker, and technical and professional 
     organizations; and
       ``(G) financial organizations; and
       ``(2) other individuals that possess important sinsight to 
     issues of national competitiveness.
       ``(c) Meetings.--(1) The chairman shall call the first 
     meeting of the Advisory Board not later than 90 days after 
     the date of enactment of this section.
       ``(2) The Advisory Board shall meet at least once every 6 
     months, and at the call of the Under Secretary.
       ``(d) 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 Stated Code, while engaged in 
     the business of the Advisory Board.
       ``(e) Consultation--In carrying out this section, the Under 
     Secretary shall consult with other agencies, as appropriate. 
     The Advisory Board, as appropriate, shall establish 
     communication and coordination mechanisms with other Federal 
     advisory committees to help ensure integrated Federal-private 
     consideration of technology and manufacturing policies and 
     programs.
       ``(f) Termination.--Section 14 of the Federal Advisory 
     Committee Act shall not apply to the Advisory Board.''.

     SEC. 308. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECHNOLOGIES.

       Within 9 months after the date of enactment of this Act, 
     the Critical Technologies Institute (in this section referred 
     to as the ``Institute'') established under section 822 of the 
     National Defense Authorization Act for Fiscal Year 1991 (42 
     U.S.C. 6686) shall, after consultation with the private 
     sector and appropriate officials from other Federal agencies, 
     submit to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Science, 
     Space, and Technology of the House of Representatives a 
     report on advanced lithography technologies for the 
     production of semiconductor devices. The report shall include 
     the Institute's evaluation of the likely technical and 
     economic advantages and disadvantages of each such 
     technology, an analysis of current private and Government 
     research to develop each such technology, and any 
     recommendations the Institute may have regarding future 
     Federal support for research and development in advanced 
     lithography. To the extent appropriate, the Institute shall 
     draw upon technical and business analyses of advanced 
     lithography technologies prepared by or for major trade 
     associations and professional and technical societies.
          TITLE IV--ADDITIONAL COMMERCE DEPARTMENT PROVISIONS

     SEC. 401. INTERNATIONAL STANDARDIZATION.

       (a) Findings.--Congress finds that--
       (1) private sector consensus standards are essential to the 
     timely development of competitive products;
       (2) Federal Government contributions of resources and more 
     active participation in the voluntary standards process in 
     the United States can increase the quality of United States 
     standards, increase their compatibility with the standards of 
     other countries, and, where appropriate, through government-
     to-government negotiations, ease access of United States-made 
     products to foreign markets; and
       (3) the Federal Government, working in cooperation with 
     private sector organizations including trade associations, 
     engineering societies, and technical bodies, can effectively 
     promote Federal Government use of United States consensus 
     standards and, where appropriate, the adoption and Federal 
     Government use of international standards.
       (b) Standards Pilot Program.--Section 104(e) of the 
     American Technology Preeminence Act of 1991 (Public Law 102-
     245; 106 Stat. 10) is amended--
       (1) by inserting ``(1)'' immediately before ``Pursuant to 
     the'';
       (2) by striking ``matching funds'' and inserting in lieu 
     thereof ``financial contributions deemed appropriate by the 
     Secretary''; and
       (3) by adding at the end the following new paragraph:
       ``(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 to include other countries that prefer 
     to discuss their standards-related activities with official 
     representatives of the Federal Government. The Institute may 
     enter into additional contracts with non-Federal 
     organizations representing United States-owned companies, as 
     such term is defined in section 28(j)(2) of the National 
     Institute of Standards and Technology Act (15 U.S.C. 
     278n(j)(2)). 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 and shall seek, as 
     the Director deems appropriate, to promote the adoption of 
     international standards supported by United States industry. 
     The Institute and such contractors shall, in pursuing this 
     mission, cooperate 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.''.
       (c) Reports on Global Standards.--(1) Section 508(a) of the 
     American Technology Preeminence Act of 1992 (15 U.S.C. 3701 
     note) is amended--
       (A) by inserting ``standards development and 
     international'' immediately after ``a thorough review of 
     international'';
       (B) by redesignating paragraphs (1) through (5) as 
     paragraphs (2) through (6), respectively; and
       (C) by inserting immediately before paragraph (2), as so 
     redesignated, the following new paragraph:
       ``(1) Current and potential future roles of the Federal 
     Government in the development and promulgation of domestic 
     and global product and process standards.''.
       (2) The Secretary, in consultation with the Institute and 
     the Commerce Technology Advisory Board established under 
     section 113 of the Stevenson-Wydler Technology Innovation Act 
     of 1980 (as added by section 307 of this Act) and with, as 
     appropriate, the active participation of the private sector, 
     shall submit to Congress a report describing the appropriate 
     roles of the Department of Commerce in aid to United States 
     companies in qualifying their products in foreign markets 
     through the development and promulgation of domestic and 
     global product and quality standards and through the 
     implementation of conformity assessment and accreditation 
     procedures based upon such standards, including a discussion 
     of the extent to which each of the policy options provided in 
     the March 1992 Office of Technology Assessment report on 
     global standards, contributes to meeting the goals of--
       (A) increasing the international adoption of standards 
     beneficial to United States industries; and
       (B) improving the coordination of United States 
     representation at international standards-setting bodies.

     SEC. 402. MALCOLM BALDRIGE AWARD.

       (a) Categories in Which Award May Be Given.--(1) Section 
     108(c)(1) of the Stevenson-Wydler Technology Innovation Act 
     of 1980, as so redesignated by section 213(b)(3) of this Act, 
     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 shall submit to 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 each 
     such award under section 108(d)(1) of the Stevenson-Wydler 
     Technology Innovation Act of 1980, as so redesignated; and
       (iii) a plan for funding such awards.
       (B) In preparing the report required under subparagraph 
     (A), the Secretary 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 shall not accept applications for awards 
     described in subparagraph (A)(i) until after the report 
     required under subparagraph (A) is submitted to Congress.
       (b) Restriction.--Section 108(c)(3) of the Stevenson-Wydler 
     Technology Innovation Act of 1980, as so redesignated, 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.''.
       (c) Quality Laboratory.--Section 108(g) of the Stevenson-
     Wydler Technology Innovation Act of 1980, as so redesignated, 
     is amended to read as follows:
       ``(g) Quality Laboratory.--A National Quality Laboratory is 
     established within the Institute, the purpose of which is to 
     perform research and outreach activities to assist private 
     sector quality efforts and to serve as a mechanism by which 
     United States companies, universities, and the Institute can 
     work together to advance quality management programs and to 
     share and, as appropriate, develop manufacturing best 
     practices.''.

     SEC. 403. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.

       Section 202(d)(1) of the Stevenson-Wydler Technology 
     Innovation Act of 1980, as so redesignated by section 
     213(b)(6) of this Act, is amended by inserting ``(including 
     both real and personal property)'' immediately after ``or 
     other resources'' both places it appears.

     SEC. 404. CLEARINGHOUSE ON STATE AND LOCAL INITIATIVES.

       Section 102(a) of the Stevenson-Wydler Technology 
     Innovation Act of 1980, as so redesignated by section 
     213(b)(2) of this Act, is amended by striking ``Office of 
     Productivity, Technology, and Innovation'' and inserting in 
     lieu thereof ``Institute''.

     SEC. 405. 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 Act and the amendments made by 
     this Act, 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 Act, and the amendments 
     made by this Act, 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 
     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. 406. SEVERABILITY.

       If any provision of this Act, or the application thereof to 
     any person or circumstance, is held invalid, the remainder of 
     this Act and the application thereof to other persons or 
     circumstances shall not be affected thereby.

     SEC. 407. WIND ENGINEERING RESEARCH PROGRAM.

       (a) Short Title.--This section may be cited as the ``Wind 
     Engineering Program Act of 1993''.
       (b) Findings and Purposes.--Congress finds and declares the 
     following:
       (1) Hurricanes and tornadoes kill more Americans and 
     destroy more property than any other natural disaster.
       (2) Each year, in the United States, extreme winds cause 
     billions of dollars of damage to homes, schools, and other 
     buildings, roads and bridges, electrical power distribution 
     networks, and communications networks.
       (3) Research on wind and wind engineering has resulted in 
     improved methods for making buildings and other structures 
     less vulnerable to extreme winds, but additional research 
     funding is needed to develop new, improved, and more cost-
     effective methods of wind-resistant construction.
       (4) Federal funding for wind engineering research has 
     decreased drastically over the last 20 years.
       (5) Wind research has been hampered by a lack of data on 
     near-surface wind speed and distribution during hurricanes, 
     tornadoes, and other severe storms.
       (6) Many existing methods for wind-resistant construction 
     are inexpensive and easy to implement but often they are not 
     applied because the construction industry and the general 
     public are unaware of such methods.
       (7) Various Federal agencies have important roles to play 
     in wind engineering research, but at present there is little 
     interagency cooperation in this area.
       (8) Establishment of a Federal Wind Engineering Program 
     would result in new technologies for wind-resistant 
     construction, broader application of such technologies in 
     construction, and ultimately decreased loss of life and 
     property due to extreme winds.
       (c) Purpose.--The purpose of this section is to create a 
     Wind Engineering Program within the National Institute of 
     Standards and Technology, which would--
       (1) provide for wind engineering research;
       (2) serve as a clearinghouse for information on wind 
     engineering; and
       (3) improve interagency coordination on wind engineering 
     research between the National Institute of Standards and 
     Technology, the National Oceanic and Atmospheric 
     Administration, the National Science Foundation, the Federal 
     Aviation Administration, and other appropriate agencies.
       (d) Establishment.--Within the National Institute of 
     Standards and Technology, there shall be established a Wind 
     Engineering Program which shall--
       (1) conduct research and development, in cooperation with 
     the private sector and academia, on new methods for 
     mitigating wind damage due to tornadoes, hurricanes, and 
     other severe storms;
       (2) fund construction and maintenance of wind tunnels and 
     other research facilities needed for wind engineering 
     research;
       (3) promote the application of existing methods for, and 
     research results on, reducing wind damage to buildings that 
     are usually incompletely- or non-engineered, such as single 
     family dwellings, mobile homes, light industrial buildings, 
     and small commercial structures;
       (4) transfer technology developed in wind engineering 
     research to the private sector so that it may be applied in 
     building codes, design practice, and construction;
       (5) conduct, in conjunction with the National Oceanic and 
     Atmospheric Administration, post-disaster research following 
     hurricanes, tornadoes, and other severe storms to evaluate 
     the vulnerability of different types of buildings to extreme 
     winds;
       (6) serve as a point of contact for dissemination of 
     research information on wind engineering and work with the 
     private sector to develop education and training programs on 
     construction techniques, developed from research results, for 
     reducing wind damage;
       (7) work with the National Oceanic and Atmospheric 
     Administration, the Federal Aviation Administration, and 
     other agencies as is appropriate, on meteorology programs to 
     collect and disseminate more data on extreme wind events; and
       (8) work with the National Science Foundation to support 
     and expand basic research on wind engineering.
               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

     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 and the Assistant Secretary 
     of Commerce for Technology Policy--
       (1) for the Office of the Under Secretary, $5,000,000 for 
     fiscal year 1994 and $8,000,000 for fiscal year 1995;
       (2) for Technology Policy, $5,000,000 for fiscal year 1994 
     and $6,000,000 for fiscal years 1995;
       (3) for Japanese Technical Literature, $2,000,000 for 
     fiscal year 1994 and $3,000,000 for fiscal year 1995;
       (4) for the Office of Technology Monitoring and 
     Competitiveness Assessment, $3,000,000 for fiscal year 1994 
     and $5,000,000 for fiscal year 1995.
       (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 from 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, and 
     manipulate in electronic form, 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) Intramural Scientific and Technical Research and 
     Services.--(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, 
     $240,988,000 for fiscal year 1994 and $320,764,000 for fiscal 
     year 1995.
       (2) Of the amount authorized under paragraph (1)--
       (A) $1,000,000 for fiscal year 1994 and $1,000,000 for 
     fiscal year 1995 are authorized only for the evaluation of 
     nonenergy-related inventions;
       (B) $9,000,000 for fiscal year 1994 and $10,000,000 for 
     fiscal year 1995 are authorized only for the technical 
     competence fund; and
       (C) $5,000,000 for fiscal year 1994 and $5,000,000 for 
     fiscal year 1995 are authorized only for the standards pilot 
     project established under section 104(e) of the American 
     Technology Preeminence Act of 1991 (Public Law 102-245; 106 
     Stat. 10).
       (b) Facilities.--In addition to the amounts authorized 
     under subsection (a), there are authorized to the 
     appropriated to the Secretary $105,000,000 for fiscal year 
     1993, $62,000,000 for fiscal year 1994, and $105,000,000 for 
     fiscal year 1995 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) Extramural Industrial Technology Services.--In addition 
     to the amounts authorized under subsections (a) and (b), 
     there are authorized to be appropriated to the Secretary, to 
     carry out the extramural industrial technology services 
     activities of the Institute--
       (1) for the Manufacturing Extension Partnership, 
     $120,000,000 for fiscal year 1994 and $220,000,000 for fiscal 
     year 1995, of which--
       (A) $40,000,000 for fiscal year 1994 and $60,000,000 for 
     fiscal year 1995 are authorized only for the support of 
     Regional Centers for the Transfer of Manufacturing 
     Technology;
       (B) $30,000,000 for fiscal year 1994 and $80,000,000 for 
     fiscal year 1995 are authorized only for the support of 
     Manufacturing Outreach Centers;
       (C) $30,000,000 for fiscal year 1994 and $50,000,000 for 
     fiscal year 1995 are authorized only for the State Technology 
     Extension Program; and
       (D) $20,000,000 for fiscal year 1994 and $30,000,000 for 
     fiscal year 1995 are authorized only for the Institute 
     activities in support of the Manufacturing Extension 
     Partnership, including support of the technology extension 
     communications network provided for, and the associated 
     clearinghouse system developed, under section 304 of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (as added 
     by section 212 of this Act);
       (2) for the Advanced Technology Program, $200,000,000 for 
     fiscal year 1994 and $468,000,000 for fiscal year 1995, of 
     which $30,000,000 for fiscal year 1994 and $50,000,000 for 
     fiscal year 1995 are authorized only for support of the 
     Advanced Manufacturing Technology Development Program 
     established under section 303 of the Stevenson-Wydler 
     Technology Innovation Act of 1980 (as added by section 212 of 
     this Act); and
       (3) for quality programs at the Institute, $2,000,000 for 
     each of the fiscal years 1994 and 1995.
       (d) Wind Engineering.--(1) There are authorized to be 
     appropriated to the Institute for the purposes of section 407 
     of this Act, $1,000,000 for fiscal year 1994 and $3,000,000 
     for fiscal year 1995.
       (2) Of the amounts appropriated under paragraph (1), no 
     less than 50 percent shall be used for cooperative agreements 
     with the National Oceanic and Atmospheric Administration, the 
     National Science Foundation, and the Federal Aviation 
     Administration, or other agencies, for wind engineering 
     research, development of improved practices for structures, 
     and the collection and dissemination of meterological data 
     needed for wind engineering.

     SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY 
                   ADMINISTRATION.

       In addition to the amounts authorized under sections 501 
     and 502, there are authorized to be appropriated to the 
     Secretary--
       (1) for the establishment and management of a technology 
     training clearinghouse, $2,000,000 for fiscal year 1994 and 
     $3,000,000 for fiscal year 1995;
       (2) for the support of policy experiments relating to 
     intelligent manufacturing systems, $10,000,000 for fiscal 
     year 1994; and
       (3) for the purpose of carrying out the technology 
     financing pilot program under section 305, $2,000,000 in 
     fiscal year 1994 to prepare the operating plan and promulgate 
     regulations required under subsection (c) of that section and 
     $50,000,000 for each of fiscal years 1995 and 1996 to carry 
     out the provisions of that section.

     Amounts appropriated under paragraph (3) shall remain 
     available for expenditure through September 30, 1996. Of the 
     amounts made available under paragraph (3) for a fiscal year, 
     not more than $5,000,000 or 10 percent, whichever is greater, 
     shall be available for administrative expenses. The 
     Secretary, through the Under Secretary and the Director, may 
     accept the transfer of funding appropriated to any other 
     agency for purposes similar or related to those of the 
     programs established and carried out under title III of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (as added 
     by section 212 of this Act), or the programs established and 
     carried out under sections 25 and 26 of the National 
     Institute of Standards and Technology Act (15 U.S.C. 278k and 
     278l), and to use those funds to implement such programs as 
     provided in those statutory provisions.

     SEC. 504. NATIONAL SCIENCE FOUNDATION.

       In addition to such other sums as may be authorized by 
     other provisions of law to be appropriated to the Director of 
     the National Science Foundation, there are authorized to be 
     appropriated to that Director, to carry out the provisions of 
     section 221, $50,000,000 for fiscal year 1994 and $75,000,000 
     for fiscal year 1995.

     SEC. 505. 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.
     TITLE VI--INFORMATION TECHNOLOGY APPLICATIONS RESEARCH PROGRAM

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Information Technology 
     Applications Program Act of 1993''.

     SEC. 602. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds and declares the following:
       (1) High-performance computing and high-speed networks have 
     proven to be powerful tools for improving America's national 
     security, industrial competitiveness, and research 
     capabilities.
       (2) Federal programs, like the High-Performance Computing 
     Program established by Congress in 1991, have played a key 
     role in maintaining United States leadership in high-
     performance computing, especially in the defense and research 
     sectors.
       (3) High-performance computing and high-speed networking 
     have the potential to revolutionize many fields, including 
     education, libraries, health care, and manufacturing, if 
     adequate resources are invested in developing the technology 
     needed to do so.
       (4) The Federal Government should ensure that the 
     technology developed under research and development programs 
     like the High-Performance Computing Program can be widely 
     applied for the benefit of all Americans, including Americans 
     with disabilities .
       (5) A coordinated, interagency program is needed to 
     identify and promote the development of applications of high-
     performance computing and high-speed networking which will 
     provide large economic and social benefits to the Nation. 
     These so-called ``National Challenges'' should include tools 
     for teaching, digital libraries of electronic information, 
     computer systems to improve the delivery of health care, and 
     computer and networking technology to promote United States 
     competitiveness. To the extent practicable, these 
     applications should be designed and operated in a manner 
     consistent with copyright law.
       (6) The Office of Science and Technology Policy is the 
     appropriate office to coordinate such a program.
       (b) Purpose.--It is the purpose of this Act to help ensure 
     the widest possible application of high-performance computing 
     and high-speed networking. This requires that the United 
     States Government--
       (1) expand Federal support for research and development on 
     applications of high-performance computing and high-speed 
     networks for--
       (A) improving education at all levels, from preschool to 
     adult education, by developing new educational technology;
       (B) building digital libraries of electronic information 
     accessible over computer networks like the National Research 
     and Education Network;
       (C) improving the provision of health care by furnishing 
     health care providers and their patients with better, more 
     accurate, and more timely information; and
       (D) increasing the productivity of the Nation's workers, 
     especially in the manufacturing sector; and
       (2) improve coordination of Federal efforts to deploy these 
     technologies in cooperation with the private sector as part 
     of an advanced, national information infrastructure.

     SEC. 603. INFORMATION TECHNOLOGY APPLICATIONS RESEARCH 
                   PROGRAM.

       The High-Performance Computing Act of 1991 (15 U.S.C. 5501 
     et seq.) is amended by adding at the end the following new 
     title:
   ``TITLE III--INFORMATION TECHNOLOGY APPLICATIONS RESEARCH PROGRAM

     ``SEC. 301. ESTABLISHMENT OF APPLICATIONS RESEARCH PROGRAM.

       ``The Director, through the Federal Coordinating Council 
     for Science, Engineering, and Technology, shall, in 
     accordance with this title--
       ``(1) establish a coordinated interagency applications 
     research program to develop applications of computing and 
     networking advances achieved under the Program described in 
     section 101, that are designed (A) to be accessible and 
     usable by all persons in the United States, in the fields of 
     education, libraries, health care, the provision of 
     government information, and other appropriate fields; and (B) 
     to ensure privacy, security, and respect for copyrights; and
       ``(2) develop a Plan for Computing and Networking 
     Applications (hereafter in this title referred to as the 
     `Plan') describing the goals and proposed activities of the 
     applications research program established under paragraph 
     (1), taking into consideration the recommendations of the 
     advisory committee on high-performance computing and 
     applications established under section 101(b).

     The President shall designate the Federal agencies and 
     departments which shall participate in the applications 
     program established under paragraph (1).

     ``SEC. 302. PLAN FOR COMPUTING AND NETWORK APPLICATIONS.

       ``(a) Requirement.--The Plan shall contain recommendations 
     for a 5-year national effort and shall be submitted to the 
     Congress within 1 year after the date of enactment of this 
     title. The Plan shall be resubmitted upon revision at least 
     once every 2 years thereafter.
       ``(b) Contents.--The Plan shall--
       ``(1) establish the goals and priorities for the Program 
     for the fiscal year in which the Plan (or revised Plan) is 
     submitted and the succeeding 4 fiscal years;
       ``(2) set forth the role of each Federal agency and 
     department in implementing the Plan;
       ``(3) describe the levels of Federal funding for each 
     agency and department, and specific activities, required to 
     achieve the goals and priorities established under paragraph 
     (1);
       ``(4) identify steps agencies will take in the applications 
     research program to promote privacy, security, and respect 
     for copyrights in Federal networks and computing 
     applications; and
       ``(5) assign particular agencies primary responsibility for 
     developing particular National Challenges of high-performance 
     computing and high-speed networks.
       ``(c) Accompanying Documents.--Accompanying the Plan shall 
     be--
       ``(1) a summary of the achievements of Federal efforts 
     during the preceding fiscal year to develop technologies 
     needed for deployment and full utilization of an advanced 
     information infrastructure;
       ``(2) an evaluation of the progress made toward achieving 
     the goals and objectives of the Plan;
       ``(3) a summary of problems encountered in implementing the 
     Plan; and
       ``(4) any recommendations regarding additional action or 
     legislation which may be required to assist in achieving the 
     purposes of this title.
       ``(d) Agencies and Departments.--The Plan shall address, 
     where appropriate, the relevant programs and activities of 
     the following Federal agencies and departments:
       ``(1) The National Science Foundation.
       ``(2) The Department of Commerce, particularly the National 
     Institute of Standards and Technology, the National Oceanic 
     and Atmospheric Administration, and the National 
     Telecommunications and Information Administration.
       ``(3) The National Aeronautics and Space Administration.
       ``(4) The Department of Defense, particularly the Advanced 
     Research Projects Agency.
       ``(5) The Department of Energy.
       ``(6) The Department of Health and Human Services, 
     particularly the National Institutes of Health and the 
     National Library of Medicine.
       ``(7) The Department of the Interior, particularly the 
     United States Geological Survey.
       ``(8) The Department of Education.
       ``(9) The Department of Agriculture, particularly the 
     National Agricultural Library.
       ``(10) Such other agencies and departments as the President 
     or the Chairman of the Council considers appropriate.
       ``(e) Library of Congress.--In addition, the Plan shall 
     take into consideration the present and planned activities of 
     the Library of Congress, as deemed appropriate by the 
     Librarian of Congress.
       ``(f) Council.--The Council shall--
       ``(1) serve as lead entity responsible for development of 
     the Plan and interagency coordination of the Program;
       ``(2) coordinate the high-performance computing research 
     and development activities of Federal agencies and 
     departments undertaken pursuant to the Plan and report at 
     least annually to the President, through the Chairman of the 
     Council, on any recommended changes in agency or departmental 
     roles that are needed to better implement the Plan;
       ``(3) review, prior to the President's submission to the 
     Congress of the annual budget estimate, each agency and 
     departmental budget estimate in the context of the Plan and 
     make the results of that review available to the appropriate 
     elements of the Executive Office of the President, 
     particularly the Office of Management and Budget; and
       ``(4) consult and ensure communication between Federal 
     agencies and research, educational, and industry groups and 
     State agencies conducting research and development on and 
     using high-performance computing.

     ``SEC. 303. DEFINITIONS.

       ``As used in this title, the term--
       ``(1) `broadband' means a transmission rate for digital 
     information on a communications network which exceeds the 
     maximum rate possible for transmission of digital information 
     on normal copper telephone wires;
       ``(2) `information infrastructure' means a network of 
     communications systems and computer systems designed to 
     exchange information among all citizens and residents of the 
     United States;
       ``(3) `Internet' means the network of interoperable and 
     interconnected packet-switched data networks, whether 
     provided by the public or private sector; and
       ``(4) `National Challenge' means an application of high-
     performance computing and high-speed networking that will 
     provide large economic and social benefits to a broad segment 
     of the Nation's populace.''.

     SEC. 604. NETWORK ACCESS.

       (a) Connections Program.--In accordance with the Plan 
     developed under section 301 of the High-Performance Computing 
     Act of 1991, as added by section 603 of this Act, the 
     National Science Foundation and Department of Commerce 
     shall--
       (1) foster the creation of local networks in communities 
     which will connect institutions of higher education, 
     elementary and secondary schools, libraries, and State and 
     local governments to each other; and
       (2) provide for connection of such local networks to the 
     Internet.

     Such program shall include funding for the acquisition of 
     required hardware and for the establishment of broadband 
     connections to the Internet. In making awards under this 
     subsection, the National Science Foundation and, as 
     appropriate, the Department of Commerce shall ensure that not 
     more than 75 percent of the cost of the project for which the 
     award is made is provided under this section.
       (b) Training.--The Plan shall include programs administered 
     by the National Science Foundation, Department of Commerce, 
     and other appropriate agencies and departments to train 
     teachers, students, librarians, and State and local 
     government personnel in the use of computer networks and the 
     Internet. Training programs for librarians shall be designed 
     to provide skills and training materials needed by librarians 
     to instruct the public in the use of hardware and software 
     for accessing and using computer networks and the Internet.
       (c) Report.--The Director of the Office of Science and 
     Technology Policy shall, within 1 year after the date of 
     enactment of this Act, submit a report to Congress which 
     shall include--
       (1) findings of an examination of the extent to which the 
     education and library communities and State and local 
     government have access to the Internet, including the numbers 
     and the geographic distribution, by type, of institutions 
     having access;
       (2) a statement of the extent to which broadband 
     connections to the Internet exist for the education and 
     library communities and State and local governments, 
     including the numbers and the geographic distribution, by 
     type, of institutions having access;
       (3) an assessment of the factors limiting access by 
     schools, libraries, and State and local governments to the 
     Internet and an estimate of the cost of providing universal 
     broadband access for those institutions to the Internet; and
       (4) recommendations for collaborative programs among 
     Federal, State, and local governments and the private sector 
     to expand connectivity to the Internet for educational 
     institutions, libraries, and State and local governments.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the National Science Foundation for the 
     purposes of this section, $10,000,000 for fiscal year 1994 
     and $25,000,000 for fiscal year 1995.

     SEC. 605. APPLICATIONS FOR EDUCATION.

       (a) Responsibilities of National Science Foundation and 
     Other Agencies.--In accordance with the Plan developed under 
     section 301 of the High-Performance Computing Act of 1991, as 
     added by section 603 of this Act, the National Science 
     Foundation, the Department of Commerce, and other appropriate 
     agencies shall provide for the development of advanced 
     computing and networking technology for use in education at 
     all levels. Such applications shall include but not be 
     limited to the following:
       (1) Pilot projects, including support for acquisition of 
     required computer hardware and software, that demonstrate the 
     educational value of the Internet in providing for advances 
     in distance learning and electronic classrooms, facilitating 
     nationwide communication among educators and students, access 
     to databases of information in digital format, and access to 
     innovative curricular materials.
       (2) Development, testing, and evaluation of computer 
     systems, computer software, and computer networks for--
       (A) teacher training; and
       (B) informal education outside of school, including 
     workforce training in mathematics, science, and technology 
     and in specific job-related skills.
       (3) Development, testing, and evaluation of advanced 
     educational software and of network-based information 
     resources, including software and information resources to 
     assist students with disabilities.
       (b) Cooperation.--In carrying out activities under 
     subsection (a), the National Science Foundation, the 
     Department of Commerce, and other appropriate agencies shall 
     work with the computer and communications industry, authors 
     and publishers of educational materials, State education 
     departments, local school districts, and the Department of 
     Education, as appropriate.
       (c) National Aeronautics and Space Administration 
     Projects.--The Administrator of the National Aeronautics and 
     Space Administration (hereafter in this section referred to 
     as the ``Administrator'') shall establish a Computer 
     Technologies for K-12 Education Project (hereafter in this 
     section referred to as the ``Project'') to test and 
     demonstrate educational applications of advanced computer 
     technologies in K-12 public school systems. The Project shall 
     award, on a competitive basis, grants to plan, deploy, 
     manage, and operate advanced educational applications of 
     computer technologies in K-12 public school systems in the 
     United States in response to proposals requested by the 
     Administrator. Such proposals, at a minimum, shall provide 
     for--
       (1) placement and use of advanced computer hardware, 
     software, and networking capabilities to benefit as broad a 
     segment of the relevant public school system as possible;
       (2) use of computer technology to provide audio-visual and 
     interactive educational experiences for students and 
     teachers;
       (3) incorporation of computer technology in as many phases 
     of the school system curricula as practicable and across all 
     grade levels;
       (4) connection of the school system to national, regional, 
     and local computer networks which would enhance the 
     educational capability and effectiveness of the system;
       (5) access to national, regional, and local libraries and 
     databases which would improve the educational process and 
     enhance the educational experience within the school system; 
     and
       (6) matching non-Federal funds committed to support the 
     proposal amounting to not less than 30 percent of the Federal 
     grant from the Project.
       (d) Authorization of Appropriations.--(1) There are 
     authorized to be appropriated to the National Science 
     Foundation for the purposes of subsections (a) and (b) 
     $12,000,000 for fiscal year 1993, $24,000,000 for fiscal year 
     1994, and $40,000,000 for fiscal year 1995.
       (2) There are authorized to be appropriated to the National 
     Aeronautics and Space Administration $8,000,000 for each of 
     the fiscal years 1994 and 1995, to carry out the provisions 
     of subsection (c). No funds shall be awarded under the 
     Project other than through the competitive process 
     established by the Administrator pursuant to this section.

     SEC. 606. APPLICATIONS FOR MANUFACTURING.

       (a) Advanced Manufacturing Systems and Networking 
     Projects.--In accordance with the Plan developed under 
     section 301 of the High-Performance Computing Act of 1991, as 
     added by section 603 of this Act, the Institute shall, as 
     provided under section 303 of the Stevenson-Wydler Technology 
     Innovation Act (as added by section 212 of this Act), 
     establish an Advanced Manufacturing Program, including 
     advanced manufacturing systems and networking projects. 
     Activities under the Advanced Manufacturing Program shall, as 
     appropriate, be coordinated with the activities of the 
     Advanced Research Projects Agency, the National Science 
     Foundation, other Federal agencies, and the States to 
     develop, refine, test, and transfer advanced computer-
     integrated electronically-networked manufacturing 
     technologies and associated applications.
       (b) Support From Other Federal Departments and Agencies.--
     The Director may request and accept funds, facilities, 
     equipment, or personnel from other Federal departments and 
     agencies in order to carry out responsibilities under this 
     section.
       (c) Authorization of Appropriations.--Of the amounts 
     authorized under section 502(a) for the Institute's 
     intramural scientific and technical research and services, 
     $24,000,000 for fiscal year 1994 and $40,000,000 for fiscal 
     year 1995 are authorized only for activities under this 
     section.

     SEC. 607. APPLICATIONS FOR HEALTH CARE.

       (a) Development of Technologies by the Department of Health 
     and Human Services.--In accordance with the Plan developed 
     under section 301 of the High Performance Computing Act of 
     1991, as added by section 603 of this Act, the Department of 
     Health and Human Services, through the National Institutes of 
     Health, the National Library of Medicine, and the Centers for 
     Disease Control and Prevention, in cooperation with the 
     National Science Foundation and other appropriate agencies, 
     shall develop and support the development of interoperable 
     technologies for applications of high-performance computing 
     and high-speed networking in the health care sector. In such 
     development, emphasis shall be placed initially on 
     applications that can produce significant savings in national 
     health care costs. Such technologies shall, when feasible, 
     build on existing Federal programs for developing information 
     technology applications in the health care sector. Such 
     applications shall include but not be limited to the 
     following:
       (1) Testbed networks for linking hospitals, clinics, 
     doctor's offices, medical schools, medical libraries, and 
     universities to enable health care providers and researchers 
     to share medical data and imagery, including testbed projects 
     involving rural providers and others.
       (2) Software and visualization technology for visualizing 
     the human anatomy and analyzing imagery from X-rays, CAT 
     scans, PET scans, and other diagnostic tools.
       (3) Virtual reality technology for simulating operations 
     and other medical procedures.
       (4) Collaborative technology to allow several health care 
     providers in remote locations to provide real-time treatment 
     to patients.
       (5) Database technology to provide health care providers 
     with access to relevant medical information and literature.
       (6) Database technology for storing, accessing, and 
     transmitting patients' medical records while protecting the 
     accuracy and privacy of those records.
       (7) Development, testing, and evaluation of database and 
     network technologies for the storage of consumer-oriented, 
     interactive, multimedia materials for health promotion, and 
     for the distribution of such materials to public access 
     points, such as community health and human service agencies, 
     schools, and public libraries.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the National Library of Medicine for 
     the purposes of this section, $9,000,000 for fiscal year 
     1993, $30,000,000 for fiscal year 1994, and $50,000,000 for 
     fiscal year 1995.

     SEC. 608. APPLICATIONS FOR LIBRARIES.

       (a) Digital Libraries.--In accordance with the Plan 
     developed under section 301 of the High-Performance Computing 
     Act of 1991, as added by section 603 of this Act, the 
     National Science Foundation, the National Aeronautics and 
     Space Administration, the Advanced Research Projects Agency, 
     and other appropriate agencies shall develop technologies for 
     ``digital libraries'' of electronic information. Development 
     of digital libraries shall include the following:
       (1) Development of advanced data storage systems capable of 
     storing hundreds of trillions of bits of data and giving 
     thousands of users nearly instantaneous access to that 
     information.
       (2) Development of high-speed, highly accurate systems for 
     converting printed text, page images, graphics, and 
     photographic images into electronic form.
       (3) Development of database software capable of quickly 
     searching, filtering, and summarizing large volumes of text, 
     imagery, data, and sound.
       (4) Encouragement of development and adoption of common 
     standards and, where appropriate, common formats, for 
     electronic data.
       (5) Development of computer technology to categorize and 
     organize electronic information in a variety of formats.
       (6) Training of database users and librarians in the use of 
     and development of electronic databases.
       (7) Development of technology for simplifying the 
     utilization of networked databases distributed around the 
     Nation and around the world.
       (8) Development of visualization technology for quickly 
     browsing large volumes of imagery.
       (b) Development of Prototypes.--The National Science 
     Foundation, working with the supercomputer centers it 
     supports, shall develop prototype digital libraries of 
     scientific data available over the Internet.
       (c) Electronic Libraries in the States.--The National 
     Science Foundation, in consultation with the Department of 
     Education, the Department of Commerce, the Advanced Research 
     Projects Agency, and the Library of Congress, is authorized 
     to initiate a competitive, merit-based program to support the 
     efforts of States and, as appropriate, libraries to develop 
     electronic libraries. These electronic libraries shall 
     provide delivery of and access to a variety of databases, 
     computer programs and interactive multimedia presentations, 
     including educational materials, research information, 
     statistics and reports developed by Federal, State, and local 
     governments, and other information and informational services 
     which can be carried over the Internet.
       (d) Development of Databases of Remote-Sensing Images.--The 
     National Aeronautics and Space Administration shall develop 
     databases of software and remote-sensing images to be made 
     available over computer networks like the Internet.
       (e) Authorization of Appropriations.--(1) There are 
     authorized to be appropriated to the National Science 
     Foundation for the purposes of this section, $10,000,000 for 
     fiscal year 1993, $30,000,000 for fiscal year 1994, and 
     $55,000,000 for fiscal year 1995.
       (2) There are authorized to be appropriated to the National 
     Aeronautics and Space Administration for the purposes of this 
     section, $10,000,000 for fiscal year 1993, $20,000,000 for 
     fiscal year 1994, and $30,000,000 for fiscal year 1995.

     SEC. 609. APPLICATIONS FOR GOVERNMENT INFORMATION.

       (a) In General.--In accordance with the Plan developed 
     under section 301 of the High-Performance Computing Act of 
     1991, as added by section 603 of this Act, the Secretary and, 
     as appropriate, other Federal officials shall identify 
     projects to develop and apply high-performance computing and 
     high-speed networking technologies to provide improved public 
     access to information generated by Federal, State, and local 
     governments.
       (b) Projects.--In accordance with subsection (a), projects 
     shall be undertaken which--
       (1) connect depository libraries and other sources of 
     government information to the Internet to enable--
       (A) access to Federal Government information and databases 
     in electronic formats;
       (B) access to State or local government information;
       (C) access to related resources which enhance the use of 
     government information; and
       (D) linkages with other libraries and institutions to 
     enhance use of government information; and
       (2) demonstrate, test, and evaluate technologies to 
     increase access to and facilitate effective use of government 
     information and databases for support of research and 
     education, economic development, and an informed citizenry.
       (c) Federal Information Locator.--In accordance with 
     subsection (a), an information locator system shall be 
     established which is accessible by the public via the 
     Internet and which provides citations to Federal information 
     and guidance on how to obtain such information.
       (d) Earth Sciences Information.--In accordance with the 
     Plan developed under section 301 of the High-Performance 
     Computing Act of 1991, as added by section 603 of this Act, 
     the National Oceanic and Atmospheric Administration and other 
     appropriate agencies shall provide for the development and 
     application of high-performance computing and high-speed 
     networking technology for use in environmental monitoring, 
     prediction, and assessment, including making environmental 
     data and information more readily accessible. Such 
     applications shall include but not be limited to the 
     following:
       (1) Development of advanced data acquisition systems for in 
     situ and remotely sensed environmental data that are capable 
     of making these data available to thousands of users.
       (2) Development of advanced information systems to process 
     these environmental data, including necessary quality control 
     and interpretation using the most current scientific 
     knowledge, so that the resulting environmental information is 
     reliable, useful, and distributed widely over computer 
     networks such as the National Research and Education Network 
     in a timely manner.
       (3) Development of advanced information systems to archive 
     and disseminate this environmental data and information so 
     that it can be readily used for environmental policymaking, 
     research, and operational purposes.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for the purposes of this 
     section, $14,000,000 for fiscal year 1994 and $36,000,000 for 
     fiscal year 1995.

     SEC. 610. HIGH-PERFORMANCE COMPUTING AND APPLICATIONS 
                   ADVISORY COMMITTEE.

       Section 101(b) of the High-Performance Computing Act of 
     1991 (15 U.S.C. 5511(b)) is amended to read as follows:
       ``(b) High-Performance Computing and Applications Advisory 
     Committee.--The Director shall establish an advisory 
     committee on high-performance computing and applications 
     consisting of non-Federal members, including representatives 
     of the research, elementary and secondary education, higher 
     education, and library communities, consumer and public 
     interest groups, network providers, and the computer, 
     telecommunications, and information and publishing 
     industries, who are specially qualified to provide the 
     Director with advice and information on high-performance 
     computing and on applications of computing and networking. 
     The recommendations of the advisory committee shall be 
     considered in reviewing and revising the Program, and the 
     Plan required by section 301(2). The advisory committee shall 
     provide the Director with an independent assessment of--
       ``(1) progress in implementing the Program and the Plan;
       ``(2) the need to revise the Program and the Plan;
       ``(3) the balance between the components of the activities 
     undertaken pursuant to this Act;
       ``(4) whether the research, development, and demonstration 
     projects undertaken pursuant to this Act are helping to 
     maintain United States leadership in computing and networking 
     technologies and in the application of those technologies;
       ``(5) whether the applications developed under title III 
     are successfully addressing the needs of the targeted 
     populations, including assessment of the number of users 
     served by those applications; and
       ``(6) other issues identified by the Director.''.

     SEC. 611. NATIONAL RESEARCH AND EDUCATION NETWORK AMENDMENTS.

        Section 102 of the High-Performance Computing Act of 1991 
     (15 U.S.C. 5512) is amended to read as follows:

     ``SEC. 102. NATIONAL RESEARCH AND EDUCATION NETWORK PROGRAM.

        ``(a) Establishment.--As part of the Program described in 
     section 101, the National Science Foundation, the Department 
     of Defense, the Department of Energy, the Department of 
     Commerce, the National Aeronautics and Space Administration, 
     and other agencies participating in the Program shall support 
     the establishment of the National Research and Education 
     Network Program. The Network Program shall consist of the 
     following components:
       ``(1) Research and development of broadband networking 
     software and hardware.
       ``(2) Experimental test bed networks for--
       ``(A) developing and demonstrating advanced networking 
     technologies resulting from the activities described in 
     paragraph (1); and
       ``(B) providing connections for purposes consistent with 
     this Act which require levels of network capabilities not 
     available from commercial networks operated by the private 
     sector.
       ``(3) Provision of support directly to researchers, 
     educators, and students to obtain access to and use of the 
     Internet to allow for communication with other individuals in 
     the research and education communities and to allow for 
     access to high-performance computing systems, electronic 
     information resources, other research facilities, and 
     libraries.
       ``(b) Test Bed Network Characteristics.--The test bed 
     networks shall--
       ``(1) be developed and deployed in coordination with the 
     computer, telecommunications, and information industries;
       ``(2) be designed, developed, and operated in collaboration 
     with potential users in government, industry, and research 
     institutions and educational institutions;
       ``(3) be designed, developed, and operated in a manner 
     which fosters and maintains competition and private sector 
     investment in high-speed data networking within the 
     telecommunications industry;
       ``(4) be designed and operated in a manner which promotes 
     and encourages research and development leading to the 
     creation of commercial data transmission standards, enabling 
     the establishment of privately developed high-speed 
     commercial networks;
       ``(5) support enough sites, users, and applications to 
     provide a realistic test of new networking technologies;
       ``(6) be designed and operated so as to enable the 
     application of laws that provide network and information 
     resources security, including those that protect copyright 
     and other intellectual property rights, and those that 
     control access to databases and protect national security;
       ``(7) have accounting mechanisms which allow users or 
     groups of users to be charged for their usage of copyrighted 
     materials available over the test bed networks and, where 
     appropriate and technically feasible, for their usage of the 
     test bed networks;
       ``(8) be connected to and interoperable with Federal and 
     non-Federal computer networks, to the extent appropriate, in 
     a way that allows autonomy for each component network; and
       ``(9) be developed by purchasing standard commercial 
     transmission and network services from vendors whenever 
     feasible, and by contracting for customized services when not 
     feasible, in order to minimize Federal investment in network 
     hardware.
       ``(c) Network Access.--The Federal agencies and departments 
     participating in activities under this section shall develop 
     a plan with specific goals for implementing the requirements 
     of subsection (a)(3), including provision for financial 
     assistance to educational institutions, public libraries, and 
     other appropriate entities. This plan shall be submitted to 
     the Congress not later than one year after the date of 
     enactment of the Information Technology Applications Program 
     Act of 1993.
       ``(d) Restriction on Use of Test Bed Networks.--(1) The 
     test bed networks shall not be used to provide commercial 
     network services that are not related to experimental 
     activity conducted under this section and that could 
     otherwise be provided satisfactorily by using commercially 
     available network services.
       ``(2) This subsection shall take effect 18 months after the 
     date of enactment of the Information Technology Applications 
     Program Act of 1993.
       ``(e) Advanced Research Projects Agency Responsibility.--As 
     part of the Program, the Department of Defense, through the 
     Advanced Research Projects Agency, shall support research and 
     development of advanced fiber optics technology, switches, 
     and protocols needed to develop the Network Program.
       ``(f) Information Services.--The Director shall assist the 
     President in coordinating the activities of appropriate 
     agencies and departments to promote the development of 
     information services that could be provided over the Internet 
     consistent with the purposes of this Act. These services may 
     include the provision of directories of the users and 
     services on computer networks, databases of unclassified 
     Federal scientific data, training of users of databases and 
     computer networks, and technology to support computer-based 
     collaboration that allows researchers and educators around 
     the Nation to share information and instrumentation.
       ``(g) Use of Grant Funds.--All Federal agencies and 
     departments are authorized to allow recipients of Federal 
     research grants to use grant moneys to pay for computer 
     networking expenses.''.

     SEC. 612. CONFORMING AMENDMENTS.

       The High-Performance Computing Act of 1991 (15 U.S.C. 5501 
     et seq.) is amended--
       (1) in section 3(1), by amending subparagraph (A) to read 
     as follows:
       ``(A) accelerate the creation of a universally accessible 
     broadband telecommunications network for the Nation;'';
       (2) in section 4(4), by inserting immediately before the 
     semicolon the following: ``, which consists of that portion 
     of the Internet which receives direct Federal subsidy''; and
       (3) in section 101(a)(2), by striking ``and'' at the end of 
     subparagraph (H); by striking the period at the end of 
     subparagraph (I) and inserting in lieu thereof ``; and''; and 
     by adding at the end the following new subparagraph:
       ``(J) not provide for the building, ownership, or operation 
     of data communications networks by the Federal Government, or 
     any State or local government, or any agency or 
     instrumentality thereof, unless such networks are either (i) 
     test bed networks or (ii) networks operated for government 
     mission purposes, including military purposes.''.

  The PRESIDING OFFICER. The Chair recognizes the Senator from South 
Carolina [Mr. Hollings].
  Mr. HOLLINGS. Mr. President, I am authorized by the Committee on 
Commerce, Science, and Transportation to offer a modification to the 
committee amendment in the nature of a substitute to S. 4. I offer this 
modification and send it to the desk.
  The PRESIDING OFFICER. The Senator has a right to modify the 
amendment if authorized by the committee, and the amendment is so 
modified.
  The amendment as modified is as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

                      TITLE I--GENERAL PROVISIONS

     SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Competitiveness Act of 1994''.
       (b) Table of Contents.--

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Short title and table of contents.
Sec. 102. Findings.
Sec. 103. Purposes.
Sec. 104. Definitions.

                        TITLE II--MANUFACTURING

Sec. 201. Short title.

           Subtitle A--Manufacturing Technology and Extension

Sec. 211. Manufacturing amendments to the Stevenson-Wydler Technology 
              Innovation Act.
Sec. 212. Manufacturing amendments to the National Institute of 
              Standards and Technology Act.
Sec. 213. Additional amendments to the Stevenson-Wydler Technology 
              Innovation Act.
Sec. 214. Manufacturing technology centers.
Sec. 215. State Technology Extension Program.
Sec. 216. Report on options for accelerating the adoption of new 
              manufacturing equipment.

     Subtitle B--National Science Foundation Manufacturing Programs

Sec. 221. National Science Foundation manufacturing programs.

                    TITLE III--CRITICAL TECHNOLOGIES

Sec. 301. Development of plan for Advanced Technology Program.
Sec. 302. Large scale research and development consortia.
Sec. 303. Technical amendments.
Sec. 304. Technology monitoring and competitiveness assessment.
Sec. 305. Recoupment.
Sec. 306. Technology financing pilot program.

          TITLE IV--ADDITIONAL COMMERCE DEPARTMENT PROVISIONS

Sec. 401. Department of Commerce Technology Advisory Board.
Sec. 402. International standarization.
Sec. 403. Malcolm Baldrige award amendments.
Sec. 404. Cooperative research and development agreements.
Sec. 405. Program evaluations.
Sec. 406. Study of semiconductor lithography technologies.
Sec. 407. Clearinghouse on State and Local Initiatives.
Sec. 408. Wind engineering research program.
Sec. 409. Environmentally sensitive construction technologies.
Sec. 410. American workforce quality.
Sec. 411. Severability.
Sec. 412. Use of domestic products.
Sec. 413. Personnel.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

Sec. 501. Technology Administration.
Sec. 502. National Institute of Standards and Technology.
Sec. 503. Additional activities of the Technology Administration.
Sec. 504. National Science Foundation.
Sec. 505. Availability of appropriations.

             TITLE VI--INFORMATION TECHNOLOGY APPLICATIONS

Sec. 601. Short title.
Sec. 602. Findings and purpose.
Sec. 603. Information technology applications.
Sec. 604. Applications for education and libraries.
Sec. 605. Applications in manufacturing and information.
Sec. 606. Applications in energy and other areas.
Sec. 607. Applications for health care; access to networks.
Sec. 608. High-Performance Computing and Applications Advisory 
              Committee.
Sec. 609. National Research and Education Network Program.
Sec. 610. Support computer education programs.
Sec. 611. Support for State-based digital libraries.
Sec. 612. Support for computing activities at tribal colleges.
Sec. 613. Department of Education support for computer education 
              programs.

               TITLE VII--FASTENER QUALITY ACT AMENDMENTS

Sec. 701. Fastener Quality Act amendments.

     SEC. 102. FINDINGS.

       Congress finds and declares the following:
       (1) In an increasingly competitive world economy, the 
     companies and nations which lead in the rapid development, 
     adoption, and application of new technologies, and in the 
     low-priced, high-quality manufacture of products based on 
     those technologies, will lead in economic growth, employment, 
     and high living standards.
       (2) While the United States remains the world leader in 
     science and invention, it has not done as well as it should 
     in manufacturing new products based on these innovations. 
     This lag and the unprecedented competitive challenge that the 
     Nation has faced from abroad have contributed to a drop in 
     real wages, living standards, and employment opportunities.
       (3) There is general agreement on which fields of 
     technology are critical for economic competitiveness through 
     the first decade of the next century, but the United States 
     Government must pursue a comprehensive strategy to ensure 
     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) Maintaining a highly competitive manufacturing base in 
     the United States is essential for economic prosperity and 
     national welfare and requires continuous development and 
     adoption of advanced manufacturing technologies that will 
     enable United States manufacturers to develop innovative 
     products rapidly and manufacture goods of the highest quality 
     at competitive prices.
       (5) While the private sector must take the lead in the 
     development, application, and manufacture of new 
     technologies, the Federal Government should--
       (A) assist industry in the development of high-risk, long-
     term precommercial technologies which promise large economic 
     benefits for the Nation;
       (B) support industry-led efforts to develop and refine 
     advanced manufacturing technologies, including technologies 
     which improve productivity and quality and which build upon 
     and enhance employee skills;
       (C) work with States, the private sector, worker 
     organizations, and technical and professional societies to 
     help small and medium-sized manufacturers throughout the 
     Nation to adopt best current manufacturing technologies and 
     practices, to improve worker skills, to establish high-
     performance work organizations, and to prepare, as 
     appropriate, to adopt the advanced computer-controlled 
     manufacturing technologies of the twenty-first century; and
       (D) cooperate with industry and academia to help create an 
     advanced information infrastructure for the United States.
       (6) In working with industry to promote the technological 
     leadership and economic growth of the United States, the 
     Federal Government also has a responsibility to consult with 
     business and labor leaders on industry's long-term 
     technological and skill needs, to monitor technological 
     trends, production process trends, and technology targeting 
     efforts in other nations, and generally to ensure that 
     Federal technology and industrial modernization programs help 
     United States industry to remain competitive and create good 
     domestic jobs.
       (7) Technology-based products of the twenty-first century 
     should be developed incorporating the values of sustainable 
     development, including low material use, safety, 
     recyclability, and minimal pollution.
       (8) The Department of Commerce, and particularly its 
     Technology Administration and National Institute of Standards 
     and Technology, can effectively assist industry to speed the 
     development and utilization of new technologies, improve and 
     modernize manufacturing, adopt new methods of production, and 
     ensure a growing and healthy national industrial base and 
     good manufacturing jobs. To promote the long-term economic 
     growth of the Nation, these Department of Commerce programs 
     should be strengthened and expanded.

     SEC. 103. PURPOSES.

       The purposes of this Act are to--
       (1) strengthen and expand the ability of Federal technology 
     programs, particularly those of the Department of Commerce, 
     to support industry-led and State-supported efforts to 
     improve the technological capabilities, manufacturing 
     performance, information infrastructure, and employment 
     opportunities of the United States.
       (2) promote and facilitate, particularly through the 
     Advanced Technology Program of the Department of Commerce, 
     the creation, development, and adoption of technologies that 
     will contribute significantly to United States economic 
     competitiveness, employment, high quality jobs, and 
     prosperity;
       (3) develop a nationwide network of sources of 
     technological and industrial modernization advice for 
     manufacturers, particularly small and medium-sized firms, and 
     provide high quality, current information to that network;
       (4) encourage cooperation among Federal departments and 
     agencies to help companies, managers, and workers, in a 
     coordinated fashion, to take full advantage of advanced 
     manufacturing technologies, to improve productivity and 
     quality, and adopt advanced workplace practices which 
     successfully integrate technology and employees;
       (5) stimulate the flow of capital to business concerns 
     engaged principally in development or utilization of critical 
     technologies and other manufacturing technologies;
       (6) ensure the widest possible application of high-
     performance computing and high-speed networking and aid 
     United States industry to develop an advanced national 
     information infrastructure; and
       (7) enhance and expand the core programs of the National 
     Institute of Standards and Technology.

     SEC. 104. DEFINITIONS.

       For purposes of this Act--
       (1) the terms ``advanced manufacturing technology'', 
     ``advanced workplace practices'', ``modern technology'', and 
     ``sustainable economic growth'' have the meanings given such 
     terms, respectively, in section 4 of the Stevenson-Wydler 
     Technology Innovation Act of 1980, as amended by section 
     211(b) of this Act;
       (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 ``Director'' means the Director of the 
     Institute;
       (4) the term ``Institute'' means the National Institute of 
     Standards and Technology;
       (5) the term '`Secretary'' means the Secretary of Commerce;
       (6) the term ``small business'' has the meaning given such 
     term in the Small Business Act;
       (7) the term ``source reduction'' has the meaning given 
     that term in section 6603 of the Pollution Prevention Act of 
     1990 (42 U.S.C. 13102);
       (8) the term ``State'' means any of the several States, the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     Virgin Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, or any other territory or 
     possession of the United States;
       (9) the term ``Under Secretary'' means the Under Secretary 
     of Commerce for Technology; and
       (10) the term ``United States'' means the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, American Samoa, the Commonwealth of 
     the Northern Mariana Islands, and any other territory or 
     possession of the United States.

                        TITLE II--MANUFACTURING

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Manufacturing Technology 
     and Extension Act of 1994''.

          Subtitle A--Manuafacturing Technology and Extension

     SEC. 211. MANUFACTURING AMENDMENTS TO THE STEVENSON-WYDLER 
                   TECHNOLOGY INNOVATION ACT.

       (a) Amendments.--The Stevenson-Wydler Technology Innovation 
     Act of 1980 (15 U.S.C. 3701 et seq.), as amended by section 
     213 of this Act, is further amended by adding after section 
     101 (as so redesignated by section 213 of this Act) the 
     following new sections:

     ``SEC. 102. MANUFACTURING TECHNOLOGY.

       ``(a) Statement of Policy.--Congress declares that it is 
     the policy of the United States that--
       ``(1) Federal agencies, particularly the Department of 
     Commerce shall work with manufacturers in the United States 
     and labor to ensure that within 10 years of the date of 
     enactment of the National Competitiveness Act of 1994 the 
     United States is second to no other nation in the 
     development, deployment, and use of advanced manufacturing 
     technologies;
       ``(2) all the major Federal research and development 
     agencies shall place a high priority on the development and 
     deployment of skill-based and advanced manufacturing 
     technologies, and shall work closely with manufacturers in 
     the United States and labor and with the Nation's 
     universities to develop and test those technologies; and
       ``(3) since the development of new skills in the existing 
     and entry workforce, and the development of new 
     organizational and managerial approaches, are integral parts 
     of successfully deploying advanced manufacturing technologies 
     and related technologies, advanced workplace practices should 
     be developed and deployed simultaneously and in a coordinated 
     fashion with the development and deployment of advanced 
     manufacturing technologies.
       ``(b) Role of the Department of Commerce.--The Department 
     of Commerce, consistent with the policy declared in 
     subsection (a), shall have primary responsibility in the 
     Federal Government for commercial and industrial civilian 
     technology and shall--
       ``(1) through the activities of the Technology 
     Administration, the Institute's laboratories, and the 
     Advanced Technology Program created under section 28 of the 
     National Institute of Standards and Technology Act (15 U.S.C. 
     278n), work with manufacturers in the United States and labor 
     and, as appropriate, with other Federal departments and 
     agencies to help develop new generic advanced manufacturing 
     technologies, including technologies which build upon and 
     enhance employee skills and technologies which facilitate 
     flexibility, agility, and electronic integration in 
     manufacturing enterprises;
       ``(2) through the Manufacturing Extension Partnership 
     established under section 24 of the National Institute of 
     Standards and Technology Act and through other activities of 
     the Department, assist the States and the private sector to 
     help manufacturers in the United States, especially small and 
     medium-sized manufacturing enterprises, to adopt modern 
     technologies and advanced workplace practices and, as 
     appropriate, advanced manufacturing technologies and 
     equipment;
       ``(3) work with the private sector, other Federal 
     departments and agencies, State and local governments, and 
     educational institutions to--
       ``(A) help develop advanced workplace practices, improved 
     supplier-customer relations, manufacturing modernization and 
     investment justification strategies, and other steps which 
     would accelerate the development, deployment, and use of 
     advanced manufacturing technologies by United States 
     companies; and
       ``(B) evaluate foreign programs to modernize manufacturing;
       ``(4) have primary responsibility in the Federal Government 
     in working with industry and labor and the States to develop 
     advanced manufacturing technologies and to promote and assist 
     the adoption and use of modern technologies, advanced 
     manufacturing technologies, and management techniques 
     throughout the United States; and
       ``(5) through the Under Secretary, develop measurements and 
     coordinate with appropriate Federal agencies to ensure that 
     Federal research and development expenditures are linked to 
     the economic needs of industry and the promotion of economic 
     growth.

     ``SEC. 103. MANUFACTURING ADVISORY COMMITTEE.

       ``(a) Establishment.--Subject to subsection (d), the 
     Secretary shall establish a Manufacturing Advisory Committee 
     (in this section referred to as the `Committee'), which shall 
     be chaired by the Secretary and which shall provide advice to 
     the Secretary and, as appropriate, to other Federal 
     officials.
       ``(b) Functions.--The Committee shall--
       ``(1) collect and analyze information on the range of 
     factors which determine the success of United States-based 
     manufacturing industries, and particularly factors regarding 
     the development of advanced manufacturing technologies, the 
     deployment of modern technologies, and the application of 
     advanced workplace practices;
       ``(2) identify areas where appropriate cooperation between 
     the Federal Government and industry and labor, including 
     Government support for industry-led joint research and 
     development ventures and for manufacturing extension 
     activities, would enhance United States industrial 
     competiveness, and provide advice and guidance for such 
     cooperative efforts;
       ``(3) provide guidance on what Federal policies and 
     practices are necessary to strengthen United States-based 
     manufacturing, particularly Federal policies and practices 
     regarding research budgets, interagency coordination and 
     initiatives, and technology transfer; and
       ``(4) generally develop recommendations for guiding Federal 
     agency and interagency activities related to United States-
     based manufacturing.
       ``(C) Membership and Procedures.--(1) The Committee shall 
     be composed of 16 members, of whom--
       ``(A) 6 members shall be the Secretary, the Director of the 
     Office of Science and Technology Policy, the Secretary of 
     Defense, the Secretary of Energy, the Secretary of Labor, and 
     the Director of the National Science Foundation, or their 
     designees; and
       ``(B) 10 members shall, within 120 days after the date of 
     enactment of the National Competitiveness Act of 1994, be 
     appointed by the Secretary from the private manufacturing 
     industry, worker organizations, technical and professional 
     societies, State technology agencies, and academia.

     At least two of the members appointed under subparagraph (B) 
     shall be from small business.
       ``(2) The Secretary shall call the first meeting of the 
     Committee within 30 days after the appointment of members is 
     completed.
       ``(3) The Committee may use such personnel detailed from 
     Federal agencies as may be necessary to enable it to perform 
     its functions.
       ``(4) Nine members of the Committee shall constitute a 
     quorum for the transaction of business.
       ``(5) Members of the Committee other than full-time 
     employees of the Federal Government, while attending meetings 
     of the Committee or otherwise performing duties of the 
     Committee while away from their homes or regular places of 
     business, shall be allowed travel expenses in accordance with 
     subchapter I of chapter 57 of title 5, United States Code.
       ``(6) The Committee, as appropriate, shall work with the 
     Department of Commerce Technology Advisory Board and with 
     other appropriate Federal advisory mechanisms to ensure 
     integrated Federal-private consideration of technology and 
     manufacturing policies and programs.
       ``(d) Secretarial Discretion.--Notwithstanding any other 
     provision of this section, the Secretary shall have the 
     discretion of decide whether to establish the Committee or 
     create a more cost-effective way to achieve the goal of 
     closer cooperation with industry. If the Secretary exercises 
     such discretion and establishes an alternative mechanism, the 
     Under Secretary shall make an effort to ensure the 
     participation of socially and economically disadvantaged 
     individuals (within the meaning of section 8(a) (5) and (6) 
     of the Small Business Act, and including women) in the 
     alternative mechanism.''.
       ``(b) Additional 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) `Advanced manufacturing technology' means--
       ``(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 of goods, including biotechnology products, which 
     advance the state-of-the-art; or
       ``(B) novel manufacturing techniques and processes not 
     previously generally available that improve manufacturing 
     quality, productivity, that practices, including engineering 
     design, quality assurance, concurrent engineering, continuous 
     process production technology, inventory management, upgraded 
     worker skills, communications with customers and suppliers, 
     and promotion of sustainable economic growth.
       ``(15) `Modern technology' means the best available proven 
     technology, techniques, and processes appropriate to 
     enhancing the productivity of manufacturers or to promoting 
     sustainable economic growth.
       ``(16) `Advanced workplace practices' means innovations in 
     work organization and performance, including high-performance 
     workplace systems, flexible production techniques, quality 
     programs, continuous improvement, concurrent engineering, 
     close relations between suppliers and customers, widely 
     diffused decision-making and work teams, and effective 
     integration of production technology, worker skills and 
     training, and workplace organization.
       ``(17) `Sustainable economic growth' means economic growth 
     that enhances the national quality of life and preserves 
     environmental integrity.''.

     SEC. 212. MANUFACTURING AMENDMENTS TO THE NATIONAL INSTITUTE 
                   OF STANDARDS AND TECHNOLOGY ACT.

       ``(a) National Quality Laboratory; Manufacturing Extension 
     Partnership.--The National Institute of Standards and 
     Technology Act (15 U.S.C. 271 et seq.) is amended--
       ``(1) by redesignating sections 29 through 31 as sections 
     31 through 33, respectively;
       ``(2) by redesignating sections 23 and 24 as sections 29 
     and 30, respectively; and
       ``(3) by inserting after section 22 the following new 
     sections:


                     ``national quality laboratory

       ``Sec. 23. A National Quality Laboratory is established 
     within the Institute, the purpose of which is to perform 
     research and outreach activities to assist private sector 
     quality efforts and to serve as a mechanism by which 
     companies in the United States, universities and other 
     interested parties, and the Institute and work together to 
     advance quality management programs and to share and, a 
     appropriate, develop manufacturing best practices.


                 ``manufacturing extension partnership

       ``Sec. 24. (a) There is established within the Institute a 
     Manufacturing Extension Partnership (in this section referred 
     to as the `Partnership'). The Secretary, acting through the 
     Under Secretary and the Director, shall implement and 
     coordinate the Partnership in accordance with the initial and 
     5-year plans prepared under subsection (h). The purpose of 
     the Partnership is to link electronically and strengthen the 
     Nation's manufacturing extension centers and activities in 
     order to assist manufacturers in the United States, 
     especially small- and medium-sized companies, to extend and 
     accelerate the use of modern technologies, and to accelerate 
     the development and use of advanced manufacturing 
     technologies and advanced workplace practices.
       ``(b) The Partnership shall be a cooperative effort of the 
     Department of Commerce, the States, manufacturers in the 
     United States, labor, nonprofit organizations, and, as 
     appropriate, other Federal agencies to provide a national 
     system of manufacturing extension centers and technical 
     services to United States companies, particularly small- and 
     medium-sized manufacturers. The Partnership shall include--
       ``(1) Manufacturing Outreach Centers, as authorized under 
     subsection (c);
       ``(2) Regional Centers for the Transfer of Manufacturing 
     Technology and Local Manufacturing Offices, as established 
     under section 25, and the State Technology Extension Program, 
     as established under section 26;
       ``(3) The outreach network provided for under subsection 
     (d) and the clearinghouse system developed under subsection 
     (e); and
       ``(4) such technology and manufacturing extension centers 
     supported by other Federal departments and agencies, States, 
     industry, and nonprofit organizations as the Secretary 
     considers appropriate for inclusion in the Partnership
       ``(c)(1) Government and private sector organizations, 
     actively engaged in technology or manufacturing extension 
     activities, may apply to the Secretary to be designated as 
     Manufacturing Outreach Centers. Eligible organizations may 
     include Federal, State, and local government agencies, their 
     extension programs, and their laboratories; small business 
     development centers; and appropriate programs run by 
     professional and technical societies worker organizations, 
     industrial organizations, for-profit or nonprofit 
     organizations, community development organizations, State 
     universities and other universities, community colleges, and 
     technical schools and colleges, including, where appropriate, 
     vendor-supported demonstrations of production applications.
       ``(2) The purpose of such Manufacturing Outreach Centers 
     shall be to--
       ``(A) disseminate technical and information services to 
     manufacturers in the United States, particularly small-and 
     medium-sized companies; and
       ``(B) strengthen direct assistance to small- and medium-
     sized manufacturers in the United States to expand and 
     accelerate the use of modern technologies and advanced 
     workplace practices.
       ``(3) The Secretary shall establish terms and conditions of 
     participation in a Manufacturing Outreach Center, including 
     qualifications of start-up programs as Manufacturing Outreach 
     Centers, and may provide financial assistance, on a cost-
     shared basis and through competitive, merit-based review 
     processes, to nonprofit or government participants throughout 
     the United States to enable them to establish a Manufacturing 
     Outreach Center.
       ``(4) Any Regional Center for the Transfer of Manufacturing 
     Technology may apply to the Secretary to establish a 
     Manufacturing Outreach Center, managed by or in cooperation 
     with such Regional Center, if the Manufacturing Outreach 
     Center would be located outside and would primarily serve an 
     area outside the effective service area of such Regional 
     Center. Funding for the establishment and management of such 
     Manufacturing Outreach Center may be awarded to such Regional 
     Center under this subsection, notwithstanding the 
     restrictions of paragraph (6).
       ``(5) If a State plan for technology extension exists in a 
     State where an applicant for financial assistance under this 
     subsection is operating or plans to operate, the applicant 
     shall demonstrate in its application that its proposal is 
     compatible with such State plan.
       ``(6) If a Manufacturing Outreach Center is in or near a 
     State which has a Regional Center for the Transfer of 
     Manufacturing Technology, the Director shall, as appropriate, 
     encourage the Manufacturing Outreach Center to cooperate with 
     the Regional Center in coordinating its proposals and ongoing 
     programs to serve manufacturers in the region. Manufacturing 
     Outreach Centers may not concurrently be designated as 
     Regional Centers for the Transfer of Manufacturing Technology 
     under section 25.
       ``(7) Financial assistance may be awarded under this 
     subsection for an initial period not to exceed 3 years and 
     may, subject to successful evaluation by the institute, be 
     renewed for additional periods, not to exceed 3 years each. 
     Such assistance may not at any time exceed 50 percent of the 
     operating costs and other costs of the Manufacturing Outreach 
     Center, as defined by regulation.
       ``(d)(1) The Department of Commerce shall provide for an 
     instantaneous, interactive electronic communications network 
     (in this section referred to as the `outreach network') to 
     serve the Partnership, to facilitate effective and efficient 
     interaction within it, and to permit the collection and 
     dissemination in electronic form, in a timely and accurate 
     manner, of information described in subsection (e). The 
     outreach network shall, wherever practicable, make use of 
     existing public and private computer networks, data bases, 
     and electronic bulletin boards. The design, configuration, 
     acquisition plan, and operating policies, including user fees 
     and appropriate electronic access for public and private 
     information suppliers and users, of the outreach network 
     shall be included in the 5-year plan prepared under 
     subsection (h)(2).
       ``(2) Except as provided in this section, the outreach 
     network established under paragraph (1) shall be designed and 
     configured in a manner that will enable interoperability with 
     networks and technologies developed under the National High-
     Performance Computing Program described in section 101 of the 
     High-Performance Computing Act of 1991 (15 U.S.C. 5511). The 
     Secretary shall also, as appropriate, coordinate activities 
     under this subsection with the relevant activities of other 
     Federal agencies, particularly the agile manufacturing/
     enterprise integration activities of the Department of 
     Defense.
       ``(e)(1) The Secretary, acting through the Under Secretary, 
     shall develop a clearinghouse system, using appropriate 
     components of the Technology Administration and other public 
     and private sector information providers and carriers, where 
     appropriate, to--
       ``(A) identify expertise and acquire information, 
     appropriate to the purpose of the Partnership stated in 
     subsection (a), from all available Federal sources, and where 
     appropriate from other sources, providing assistance where 
     necessary in making such information electronically available 
     and compatible with the outreach network established under 
     subsection (d);
       ``(B) ensure ready access by manufacturers, governmental 
     agencies, and nonprofit organizations in the United States to 
     the most recent relevant available such information and 
     expertise;
       ``(C) ensure that common standards of interconnection are 
     utilized by the outreach network and the clearinghouse to 
     allow maximum interoperability and usership; and
       ``(D) to the extent practicable, inform potential users of 
     the availability of such information.
       ``(2) The clearinghouse shall include information available 
     electronically regarding--
       ``(A) activities of Manufacturing Outreach Centers, 
     Regional Centers for the Transfer of Manufacturing 
     Technology, the State Technology Extension Program, and the 
     users of the outreach network;
       ``(B) domestic and international standards from the 
     Institute and private sector organizations and other export 
     promotion information, including conformity assessment 
     requirements and procedures;
       ``(C) the Malcolm Baldridge National Quality Award program, 
     and quality principles and standards;
       ``(D) manufacturing processes that minimize waste and 
     negative environmental impact;
       ``(E) advanced workplace practices;
       ``(F) federally funded technology development and transfer 
     programs;
       ``(G) responsibilities assigned to the Clearinghouse for 
     State and Local Initiatives on Productivity, Technology, and 
     Innovation;
       ``(H) how to access data bases and services;
       ``(I) skills training, particularly for production workers, 
     that is available through trade and professional 
     organizations, federally supported programs, State resources, 
     private industry, or other organizations; and
       ``(J) other subjects relevant to the ability of companies 
     to manufacture and sell competitive products throughout the 
     world.
       ``(f) In carrying out this section, the Department of 
     Commerce shall take into consideration on the following 
     principles:
       ``(1) The Partnership and the outreach network provided for 
     under subsection (d) 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 Partnership and the outreach network shall 
     utilize and leverage, to the extent practicable, existing 
     organizations, data bases, electronic networks, facilities, 
     and capabilities, and shall be designed to complement rather 
     than supplant State and local programs.
       ``(3) The Partnership should, to the extent practicable, 
     involve key stakeholders at all levels in the planning and 
     governance of modernization strategies; concentrate on 
     assisting local clusters of firms; assist rural as well as 
     urban manufacturers; promote collaborative learning and 
     cooperative action among manufacturers; link industrial 
     modernization programs tightly to existing and future Federal 
     training initiatives, including those for youth 
     apprenticeship programs and for assisting other workers; 
     encourage small firms to seek modernization services by 
     working with major manufacturers; encourage small firms, as 
     appropriate, to select manufacturing equipment and practices 
     which build upon and expand the skills of their employees; 
     identify and honor best practices by firms and the programs 
     that support them, including both technology and workplace 
     practices; provide funding based on performance and ensure 
     rigorous evaluation of extension services; as appropriate, 
     coordinate Federal programs that support manufacturing 
     modernization; work with Federal, State, local, and private 
     organizations so that Manufacturing Outreach Centers and 
     Regional Centers for the Transfer of Manufacturing Technology 
     can provide referrals to other important business services, 
     such as assistance with financing, training, and exporting, 
     and contribute to local business climates supportive of high-
     performance manufacturing.
       ``(4) The Partnership and the outreach network provided for 
     under subsection (d) shall be subject to all applicable 
     provisions of law for the protection of trade secrets and 
     business confidential information.
       ``(5) Local or regional needs should determine the 
     management structure and staffing of the Manufacturing 
     Outreach Centers. The Partnership shall strive for 
     geographical balance and for balance between urban and rural 
     recipients, with the ultimate goal of access for all United 
     States manufacturers.
       ``(6) Manufacturing Outreach Centers should have the 
     capability to deliver outreach services directly to 
     manufacturers; actively work with, rather than supplant, the 
     private sector; help firms assess needs regarding technology, 
     workplace practices, and training; and to the extent 
     practicable, maximize the exposure of United States 
     manufacturers to demonstrations of modern technologies in 
     use.
       ``(7) Manufacturing Outreach Centers shall focus, where 
     possible, on the deployment of flexible manufacturing 
     technologies and practices applicable to both defense and 
     commercial applications and on opportunities to modernize 
     operations in ways which improve productivity, reduce waste 
     and pollution, and increase energy efficiency.
       ``(8) The Department of Commerce shall develop mechanisms 
     for--
       ``(A) soliciting the perspectives of manufacturers using 
     the services of the Manufacturing Outreach Centers and 
     Regional Centers for the Transfer of Manufacturing 
     Technology;
       ``(B) assisting in the training of technology extension 
     agents and in helping them disseminate information on modern 
     manufacturing technologies, including technologies for source 
     reduction, and advance workplace practices; and
       ``(C) rigorously evaluating the effectiveness of the 
     Manufacturing Outreach Centers and other components of the 
     Partnership.
       ``(9) This Act does not supersede, modify, or otherwise 
     alter the rights and obligations of employers, employees, and 
     labor organizations as set forth in the National Labor 
     Relations Act and the Railway Labor Act or in any collective 
     bargaining agreement entered into by parties covered by those 
     Acts.
       ``(g)(1) The Regional Centers for the Transfer of 
     Manufacturing Technology and Manufacturing Outreach Centers 
     shall, as appropriate, make available source reduction and 
     energy conservation assessments to interested manufacturers 
     in the United States. These assessments shall assist such 
     interested manufacturers in identifying opportunities for 
     energy conservation and source reduction, and thus reduce 
     operating costs, through either improvement in manufacturing 
     processes or the purchase of new equipment.
       ``(2) The Secretary is authorized to work with other 
     appropriate Federal officials and other parties to provide 
     employees of Regional Centers for the Transfer of 
     Manufacturing Technology and Manufacturing Outreach Centers 
     with the training needed to carry out the assessments 
     specified in paragraph (1).
       ``(h)(1) Within 6 months after the date of enactment of the 
     National Competitiveness Act of 1994, the Secretary, through 
     the Under Secretary and Director and after consulting with 
     the private sector, shall submit an initial plan for the 
     implementation of this section to Congress--
       ``(A) describing how the Secretary will carry out the 
     responsibility to create, operate, and support the 
     Partnership and the outreach network;
       ``(B) establishing criteria and procedures, consistent with 
     the requirements of this section, for--
       ``(i) the selection of organizations to receive Department 
     of Commerce services or financial assistance as part of the 
     Partnership, including qualifications and training of 
     technology extension agents;
       ``(ii) access to services provided by participants in the 
     Partnership and to information available through the outreach 
     network servicing the Partnership; and
       ``(iii) the annual evaluation of the Partnership in 
     achieving the purposes of this section; and
       ``(C) evaluating the need for and the benefits of a 
     National Conference of States on Technology Extension, 
     similar in structure to the National Conference on Weights 
     and Measures, 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 such a 
     Conference.
       ``(2)(A) within 1 year after the date of enactment of the 
     National Competitiveness Act of 1994, the Secretary, through 
     the Under Secretary and Director, shall prepare and submit to 
     the Congress a 5-year plan for implementing the Partnership 
     and the outreach network and clearinghouse established under 
     subsections (d) and (e), respectively, of this section.
       ``(B) Such 5-year plan shall address--
       ``(i) effective mechanisms for providing operating funds 
     for the maintenance and use of the outreach network 
     established under subsection (d), including user fees, 
     industry support, and continued Federal investment;
       ``(ii) the future operation and evolution of the outreach 
     network, including its relationship with other public or 
     private information services;
       ``(iii) how to protect the copyrights of material 
     distributed over the outreach network; and
       ``(iv) appropriate policies to ensure the security of 
     proprietary information that might be available on the 
     outreach network and to protect the privacy of users of the 
     outreach network.
       ``(C) Such 5-year plan shall identify appropriate methods 
     for expanding the Partnership in a geographically balanced 
     manner. 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 
     paragraph (1). In the preparation of such 5-year plan, the 
     Secretary shall provide an opportunity for public comment, 
     and the plan submitted to Congress shall include a summary of 
     comments received. Any new types of activities proposed by 
     such plan may not be implemented until 90 days after its 
     submission to the Congress.
       ``(3) Beginning with the first year after submission of the 
     5-year plan under paragraph (2), the Secretary shall annually 
     report to the Congress, at the time of the President's annual 
     budget request to Congress, on--
       ``(A) progress made in achieving the purposes of the 
     Partnership described in subsection (a), using criteria and 
     procedures established under paragraph (1)(B)(iii) of this 
     subsection;
       ``(B) changes proposed to the 5-year plan;
       ``(C) performance in adhering to schedules; and
       ``(D) any recommendations for legislative changes necessary 
     to enhance the Partnership.

     The report under this paragraph submitted at the end of the 
     fourth year of operation of the Partnership shall include 
     recommendations on whether to terminate the Partnership or 
     extend it for an additional period not to exceed 5 years.''.
       (b) Definitions.--The National Institute of Standards and 
     Technology Act (15 U.S.C. 271 et seq.) is amended by 
     inserting after section 1 the following new section:
       ``Sec. 1A. As used in this Act--
       ``(1) the terms `advanced manufacturing technology', 
     `modern technology', `advanced workplace practices', and 
     `sustainable economic growth' have the meanings given such 
     terms in section 4 of the Stevenson Wydler Technology 
     Innovation Act;
       ``(2) the term `independent research organizations' means 
     nonprofit organizations organized primarily for the purpose 
     of conducting or managing research activities;
       ``(3) the term `source reduction' has the meaning given 
     that term in section 6603 of the Pollution Prevention Act of 
     1990 (42 U.S.C. 13102);
       ``(4) the term `State' means any of the several States, the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     Virgin Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, or any other territory or 
     possession of the United States; and
       ``(5) the term `United States' means the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, American Samoa, the Commonwealth of 
     the Northern Mariana Islands, and any other territory or 
     possession of the United States.''.

     SEC. 213. ADDITIONAL AMENDMENTS TO THE STEVENSON-WYDLER 
                   TECHNOLOGY INNOVATION ACT.

       The Stevenson-Wydler Technology Innovation Act of 1980 (15 
     U.S.C. 3701 et seq.) is amended--
       (1) by inserting after section 4 the following new title 
     heading:

       ``TITLE I--DEPARTMENT OF COMMERCE AND RELATED PROGRAMS'';

       (2) by redesignating section 5 as section 101;
       (3) by redesignating sections 6 through 10 as sections 105 
     through 109, respectively;
       (4) by striking section 21;
       (5) by redesignating sections 16, 17, 18, 19, 20, and 22 as 
     sections 110 through 115, respectively;
       (6) by inserting after section 115 (as redesignated by 
     paragraph (5) of this subsection) the following new title 
     heading:

               ``TITLE II--FEDERAL TECHNOLOGY TRANSFER'';

       (7) by redesignating sections 11 through 15 as sections 201 
     through 205, respectively;
       (8) by redesignating section 23 as section 206;
       (9) in section 4--
       (A) by striking ``section 5'' and inserting in lieu thereof 
     ``section 101'';
       (B) by striking ``section 5(b)(1)'' and inserting in lieu 
     thereof ``section 101(b)(1)'';
       (C) in paragraphs (4) and (6), by striking ``section 6'' 
     and ``section 8'' each place they appear and inserting in 
     lieu thereof ``section 105'' and ``section 107'', 
     respectively; and
       (D) in paragraph (13), by striking ``section 6'' and 
     inserting in lieu thereof ``section 105'';
       (10) in section 108 (as redesignated by paragraph (3) of 
     this subsection) by striking ``section 6(a)'' and inserting 
     in lieu thereof ``section 106(a)''; by striking ``section 
     6(b)'' and inserting in lieu thereof ``section 106(b)''; and 
     by striking ``section 6(c)(3)'' and inserting in lieu thereof 
     ``section 106(c)(3)'';
       (11) in section 109(d) (as redesignated by paragraph (2) of 
     this subsection) by striking ``section 7, 9, 11, 15, 17, or 
     20 of'';
       (12) in section 201(i) (as redesignated by paragraph (7) of 
     this subsection) by inserting ``loan, lease, or'' after 
     ``may''; and by inserting ``Actions taken under this 
     subsection shall not be subject to Federal requirements on 
     the disposal of property.'' after ``activities.'';
       (13) in section 202(b) (as redesignated by paragraph (7) of 
     this subsection) by striking ``section 14(a)(1)(B) (i), (ii), 
     and (iv)'' and inserting in lieu thereof ``section 
     204(a)(1)(B) (i), (ii), and (iv)'';
       (14) in section 204(a)(1) (as redesignated by paragraph (7) 
     of this subsection) by striking ``section 12'' and inserting 
     in lieu thereof ``section 202'';
       (15) in section 115 (as redesignated by paragraph (5) of 
     this subsection) by striking ``Act (other than sections 11, 
     12, and 13)'' and inserting in lieu thereof ``title'';
       (16) in section 206 (as redesignated by paragraph (7) of 
     this subsection)--
       (A) by striking ``section 12(d)(2)'' in the introductory 
     matter of subsection (a) and inserting in lieu thereof 
     ``section 202(d)(2)'';
       (B) by striking ``section 11(b)'' in subsection (a)(2) and 
     inserting in lieu thereof ``section 201(b)''; and
       (C) by striking ``section 6(d)'' in subsection (b) and 
     inserting in lieu thereof ``section 105(d)'';
       (17) in section 112 (as redesignated by paragraph (5) of 
     this subsection)--
       (A) in the section heading, by striking ``CONFERENCE'' and 
     inserting in lieu thereof ``CONFERENCES'';
       (B) by striking ``Not later than'' through ``shall convene 
     a conference'' and inserting in lieu thereof ``The Secretary, 
     through the Under Secretary, in consultation with other 
     appropriate officials, may convene conferences''; and
       (C) by striking ``such conference shall'' and in insert in 
     lieu thereof ``any such conferences shall, whenever 
     appropriate,'';
       (18) by adding at the end of section 201 (as redesignated 
     by paragraph (7) 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, 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.''; and
       (19) in section 101(c) (as redesignated by paragraph (2) of 
     this subsection)--
       (A) by striking ``and'' at the end of paragraph (14);
       (B) by striking the period at the end of paragraph (15) and 
     inserting in lieu thereof ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(16) engage in joint projects with any person or persons 
     on matters within the authority of the Department of 
     Commerce, accept temporary personnel from industrial 
     partners, and receive cash donations in the course of such 
     joint projects, and in conjunction with the planning and 
     operation of such joint projects hold private meetings of 
     matters of mutual interest with groups of interested persons, 
     in order to protect sensitive information about United States 
     industry and to ensure industry participation in such joint 
     projects.''.

     SEC. 214. MANUFACTURING TECHNOLOGY CENTERS.

       (a) Amendments.--(1) Section 25(a) of the National 
     Institute of Standards and Technology Act (15 U.S.C. 278k(a)) 
     is amended by striking ``and'' at the end of paragraph (4); 
     by striking the period at the end of paragraph (5) and 
     inserting in lieu thereof a semicolon; and by inserting after 
     paragraph (5) the following new paragraphs:
       ``(6) the active dissemination of information on advanced 
     workplace practices and available education and training 
     programs, and the encouragement of companies to train workers 
     in the effective use of modern technologies and advanced 
     manufacturing technologies; and
       ``(7) demonstration projects in which Centers work with 
     States, local governments, community development 
     organizations, worker and business organizations, and 
     community banks to create a business climate supportive of 
     high-performance manufacturing.''.
       (2) Section 25(b) of the National Institute of Standards 
     and Technology Act (15 U.S.C. 278k(b)) is amended by striking 
     ``and'' at the end of paragraph (2); by redesignating 
     paragraph (3) as paragraph (4); and by inserting after 
     paragraph (2) the following new paragraph:
       ``(3) assessments of client companies' modernization needs, 
     assistance in implementing quality processes, advice on 
     pollution minimization and source reduction, and, where 
     needed, cooperation with training institutions to ensure that 
     employees, particularly production workers, receive training 
     in the most effective use of modern technologies and advanced 
     workplace practices; and''.
       (3) Section 25(c) of the National Institute of Standards 
     and Technology Act (15 U.S.C. 278k(c)) is amended--
       (A) in paragraph (1) by striking ``for a period not to 
     exceed six years''; and
       (B) in paragraph (5) by striking ``which are designed'' and 
     all that follows through the period at the end of the 
     paragraph 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 least triennially 
     thereafter 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 most recent evaluation is 
     positive and the Secretary finds that continuation of funding 
     furthers the purposes of this section.''.
       (4) Section 25 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278k) is amended by adding at the 
     end the following new subsections:
       ``(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 outreach services, in 
     collaboration with the Center, to 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 3 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 subsection.
       ``(f) In carrying out this section, the Director shall 
     coordinate his efforts with the plans for the Manufacturing 
     Extension Partnership established under section 24.''.

     SEC. 215 STATE TECHNOLOGY EXTENSION PROGRAM.

       (a) Establishment.--Section 26(a) of the National Institute 
     of Standards and Technology Act (15 U.S.C. 2781(a)) is 
     amended--
       (1) by inserting after ``(a)'' the following new sentence: 
     ``There is established within the Institute a State 
     Technology Extension Program.''; and
       (2) by inserting ``through that Program'' after ``technical 
     assistance''.
       (b) Assistance Provided by Program.--Section 26 of the 
     National Institute of Standards and Technology Act (15 U.S.C. 
     278l) is amended by adding at the end the following new 
     subsection:
       ``(c) In addition to the general authorities listed in 
     subsection (b), the State Technology Extension Program also 
     shall, through merit-based competitive review processes and 
     to the extent provided in advance in appropriations Acts--
       ``(1) make awards to States and conduct workshops, pursuant 
     to section 5121(b) of the Omnibus Trade and Competitiveness 
     Act of 1988 (15 U.S.C. 2781 note) in order to help States 
     improve their planning and coordination of technology 
     extension activities;
       ``(2) assist States, including States which historically 
     have had no manufacturing or technology extension programs or 
     only small programs, to plan, develop, and coordinate such 
     programs and to help bring those State programs to a level of 
     performance where they can provide the full range of 
     manufacturing extension services required by their 
     manufacturers or, as appropriate, apply successfully for 
     awards to establish Manufacturing Outreach Centers, Regional 
     Centers for the Transfer of Manufacturing Technology, or 
     both;
       ``(3) support industrial modernization demonstration 
     projects to help States create networks among small 
     manufacturers for the purpose of facilitating technical 
     assistance, group services, and improved productivity and 
     competitiveness;
       ``(4) support State efforts to develop and test innovative 
     ways to help small- and medium-sized manufacturers in the 
     United States improve their technical capabilities, 
     including, as appropriate, State contracts with private-
     sector technology transfer companies to provide technology 
     assistance and development services that are beyond the 
     current capacity of a given State's industrial extension 
     activities;
       ``(5) support State efforts designed to help small- and 
     medium-sized manufacturers in rural as well as urban areas 
     improve and modernize their technical capabilities, 
     including, as appropriate, interstate efforts to achieve such 
     end;
       ``(6) support State efforts to assist interested small 
     defense manufacturing firms to convert their production to 
     nondefense or dual-use purposes;
       ``(7) support planning for worker technology education 
     programs in the States at institutions such as research 
     universities, community colleges, technical and professional 
     societies, labor education centers, labor-management 
     committees, and worker organizations in production 
     technologies critical to the Nation's future, with an 
     emphasis on high-performance work systems, the skills 
     necessary to use advanced manufacturing system well, and best 
     production practice; and support on-the-job training programs 
     in the States to build and enhance the skills of employees, 
     particularly production workers, in small- and medium-sized 
     manufacturers; and
       ``(8) help States develop programs to train personnel who 
     in turn can provide technical skills to managers and workers 
     of manufacturing firms.''.

     SEC. 216. REPORT ON OPTIONS FOR ACCELERATING THE ADOPTION OF 
                   NEW MANUFACTURING EQUIPMENT.

       Within 1 year after the date of enactment of this Act, the 
     Secretary, acting through the Under Secretary, shall submit 
     to Congress a report on--
       (1) the degree to which United States manufacturers have 
     difficulty obtaining financing for the purpose of purchasing 
     equipment needed to implement advanced manufacturing 
     technology and modernize operations;
       (2) the policies and practices followed in other 
     industrialized countries to help manufacturers obtain 
     financing for modernization; and
       (3) the advantages, disadvantages, and costs of major 
     options by which the Federal Government might help stimulate 
     the flow of capital to manufacturers and thus accelerate 
     industrial modernization, including--
       (A) creation of a Government-sponsored enterprise to 
     stimulate the flow of capital to manufacturing;
       (B) increasing technical advice to banks and other 
     financial institutions, perhaps through the Manufacturing 
     Extension Partnership in order to increase their ability to 
     judge whether or not individual manufacturers have sound 
     modernization plans;
       (C) cooperation between extension activities supported 
     under the Manufacturing Extension Partnership and 
     manufacturing equipment leasing firms in order to provide 
     manufacturers with additional information or equipment 
     leasing options; and
       (D) tax incentives.

     Subtitle B--National Science Foundation Manufacturing Programs

     SEC. 221. NATIONAL SCIENCE FOUNDATION MANUFACTURING PROGRAMS.

       (a) In General.--The Director of the National Science 
     Foundation, after, as appropriate, consultation with the 
     Secretary, the Under Secretary, and the Director, shall--
       (1) work with United States companies to identify areas of 
     research in advanced manufacturing technologies and advanced 
     workplace practices that offer the potential to improve 
     United States productivity, competitiveness, and 
     employment;
       (2) support research at United States universities to 
     improve advanced manufacturing technologies and advanced 
     workplace practices; and
       (3) work with the Technology Administration of the 
     Department of Commerce and the Institute and, as appropriate, 
     other Federal agencies to accelerate the transfer to United 
     States companies of manufacturing research and innovations 
     developed at universities.
       (b) Engineering Research Centers and Industry/University 
     Cooperative Research Centers.--The Director of the National 
     Science Foundation shall strengthen and expand the number of 
     Engineering Research Centers and strengthen and expand the 
     Industry/University Cooperative Research Centers Program with 
     the goals of increasing the engineering talent base versed in 
     technologies and workplace practices critical to the Nation's 
     future, with emphasis on advanced manufacturing technologies, 
     and of advancing fundamental engineering knowledge in these 
     technologies. At least one Engineering Research Center shall 
     have a research and education focus on the concerns of United 
     States manufacturers, including small- and medium-sized 
     manufacturers that are trying to modernize their operations. 
     Awards under this subsection shall be made on a competitive, 
     merit review basis. Such awards may include support for 
     acquisition of instrumentation, equipment, and facilities 
     related to the research and education activities of the 
     Engineering Research Centers and support for undergraduate 
     students to participate in the activities of the Engineering 
     Research Centers.
       (c) Graduate Traineeships.--The Director of the National 
     Science Foundation, in consultation with the Secretary, may 
     establish a program to provide traineeships to United States 
     citizens or permanent resident aliens who are graduate 
     students at institutions of higher education within the 
     United States who choose to pursue masters or doctoral 
     degrees in manufacturing or industrial engineering. The 
     Director of the National Science Foundation shall make an 
     effort to ensure the provision of traineeships under this 
     subsection to socially and economically disadvantaged 
     individuals (within the meaning of section 8(a) (5) and (6) 
     of the Small Business Act, and including women).
       (d) Manufacturing Managers in the Classroom Program.--The 
     Director of the National Science Foundation, in consultation 
     with the Secretary, may establish a program to provide 
     fellowships, on a cost-shared basis, to individuals from 
     industry with experience in manufacturing to serve for 1 or 2 
     years as instructors in manufacturing at 2-year community and 
     technical colleges in the United States. In selecting 
     fellows, the Director of the National Science Foundation 
     shall place special emphasis on supporting individuals who 
     not only have expertise and practical experience in 
     manufacturing but who also will work to foster cooperation 
     between 2-year colleges and nearby manufacturing firms.
       (e) Programs to Teach Total Quality Management.--The 
     Director of the National Science Foundation, in consultation 
     with the Secretary, the Under Secretary, and the Director, 
     may establish a program to develop innovative curricula, 
     courses, and materials for use by institutions of higher 
     education for instruction in total quality management and 
     related management practices, in order to help improve the 
     productivity of United States companies.
       (f) Small Manufacturers Renewal and Training.--(1) The 
     Director of the National Science Foundation, acting in 
     cooperation with the Director, shall establish and carry out 
     a pilot program, know as the Small Manufacturers Renewal and 
     Training Program in this subsection referred to as the 
     ``Program''), to award grants to eligible partnerships for 
     internship activities under this section. Partnerships 
     between engineering colleges and manufacturing extension 
     centers are eligible to apply for grants under the Program 
     and be designated as SMaRT Partnerships. The Director of the 
     National Science Foundation shall establish requirements for 
     proposals for funding under the Program, for activities 
     undertaken by SMaRT Partnerships with such funding, and for 
     reporting by SMaRT Partnerships and other persons 
     participating in the Program, and criteria for selecting 
     proposals, including economic need.
       (2) Each SMaRT Partnership receiving a grant under the 
     Program shall use such grant funds to sponsor qualified 
     engineering students to work as interns with eligible small 
     manufacturers, especially very small manufacturers, by paying 
     the host company the Federal share of the intern's wages, not 
     to exceed the Federal minimum wage.
       (3) A small manufacturer shall be eligible to host interns 
     under the Program only for manufacturing operations in the 
     United States, shall provide adequate supervision to each 
     intern, and shall use funds provided under the Program only 
     to pay wages to the intern that supplement the host company 
     share of the intern's wages, not be less than the Federal 
     minimum wage. No company shall be eligible to receive funding 
     in excess of 2 years' wages at the Federal minimum wage.

                    TITLE III--CRITICAL TECHNOLOGIES

     SEC. 301. DEVELOPMENT OF PLAN FOR THE ADVANCED TECHNOLOGY 
                   PROGRAM.

       The Secretary, acting through the Under Secretary and the 
     Director, shall, within 6 months after the date of enactment 
     of this Act, submit to Congress a plan for the expansion of 
     the Advanced Technology Program established under section 28 
     of the National Institute of Standards and Technology Act (15 
     U.S.C. 278n), with specific consideration given to--
       (1) closer coordination and cooperation with the Advanced 
     Research Projects Agency and other Federal research and 
     development agencies as appropriate;
       (2) establishment of temporary staff positions that can be 
     filled by industrial or technical experts for a period of 1 
     to 2 years;
       (3) ensuring that the Advanced Technology Program will have 
     a meaningful impact on the utilization of a broad range of 
     critical technologies and on the refinement of advanced 
     manufacturing technologies;
       (4) changes that may be needed when annual funds available 
     for grants under the Advanced Technology Program reach levels 
     of $200,000,000 and $500,000,000; and
       (5) any additional administrative steps that may be 
     necessary for the Advanced Technology Program to support 
     large-scale joint research and development ventures.

     SEC. 302. LARGE-SCALE RESEARCH AND DEVELOPMENT CONSORTIA.

       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) In addition to the general authority under this 
     section to provide financial assistance to joint ventures, 
     the Secretary, through the Director, also may, as permitted 
     by levels of authorizations and appropriations, provide 
     financial support for up to 7 years to large-scale joint 
     ventures requesting $20,000,000 or more a year in Department 
     of Commerce funds. The Secretary may work with industrial 
     groups to develop such proposed large-scale joint ventures 
     and shall give preference to proposals which represent a 
     broad spectrum of companies for a given industry and which 
     focus either on speeding the commercialization of important 
     new technologies or on accelerating the development, testing, 
     and deployment of valuable new process technologies and 
     workplace practices. The Secretary and Director, as 
     appropriate, shall obtain independent technical review of 
     industry proposals submitted under this section.''.

     SEC. 303. TECHNICAL AMENDMENTS.

       (a) Amendments to the National Institute of Standards and 
     Technology Act.--Section 28 of the National Institute of 
     Standards and Technology Act (15 U.S.C. 278n), as amended by 
     section 302 of this Act, is further amended--
       (1) by adding at the end of subsection (a), the following 
     new sentence: ``The Secretary, acting through the Director, 
     shall ensure that the principal economic benefits of the 
     Program accrue to the economy of the United States.'';
       (2) in subsection (b)--
       (A) in paragraph (1)(B), by striking ``or contracts'' and 
     inserting in lieu thereof ``contracts, and, subject to the 
     last sentence of this subsection, other transactions'';
       (B) in paragraph (1)(B)(ii), by striking ``provision of a 
     minority share of the cost of such joint ventures for up to 5 
     years'' and inserting in lieu thereof ``the option of 
     providing either a minority share of the total cost of such 
     joint ventures for up to 5 years, or only direct costs (and 
     not indirect costs, profits, or management fees), for up to 5 
     years'';
       (c) in paragraph (2)--
       (i) by striking ``and cooperative agreements'' and 
     inserting in lieu thereof ``cooperative agreements, and, 
     subject to the last sentence of this subsection, other 
     transactions''; and
       (ii) by inserting '', and independent research 
     organizations'' after ``especially small businesses''; and
       (D) by adding after paragraph (4) the following:

     ``The authority under paragraph (1)(B) and paragraph (2) to 
     enter into other transactions shall apply only if the 
     Secretary, acting through the Director, determines that 
     standard contracts, grants, or cooperative agreements are not 
     feasible or appropriate, and only when other transaction 
     instruments incorporate terms and conditions that reflect the 
     use of generally accepted commercial accounting and auditing 
     practices.'';
       (3) in subsection (d)(3), by striking ``exceed $2,000,000 
     over 3 years, or'';
       (4) in subsection (j)--
       (A) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively; and
       (B) by inserting before paragraph (2), as so redesignated, 
     the following new paragraph:
       ``(1) the term `independent research organizations' means 
     nonprofit organizations organized primarily for the purpose 
     of conducting or managing research activities;''; and
       (5) by adding at the end the following new subsection:
       ``(1) Notwithstanding subsection (b)(1)(B)(ii) and (d)(3), 
     the Director may grant an extension 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.''.
       (b) United States Joint Ventures.--(1) Section 28(d)(11)(A) 
     of the National Institute of Standards and Technology Act (15 
     U.S.C. 278n(d)(11)(A)) is amended by striking the periods at 
     the end of the first sentence and inserting in lieu thereof 
     the following: ``or any other person otherwise eligible to 
     participate in an eligible joint venture, as agreed by the 
     parties receiving funding under any particular award, 
     notwithstanding the requirements of section 202(a) and (b) of 
     title 35, United States Code.''.
       (2) The amendment made by paragraph (1) shall be effective 
     only with respect to assistance for which solicitations for 
     proposals are made after the date of enactment of this Act.
       (c) Amendments to the American Technology Preeminence Act 
     of 1991.--Section 201(d) of the American Technology 
     Preeminence Act of 1991 (15 U.S.C. 278n note) is amended by 
     adding at the end the following new sentence: ``In the case 
     of the amendment made by subparagraph (A) of subsection 
     (c)(6), such amendment shall be effective as of the date of 
     enactment of the paragraph stricken by such paragraph.''.
       (2) Section 507 of the American Technology Preeminence Act 
     of 1991 (15 U.S.C. 3717) is repealed.
       (d) Amendments to the National Science and Technology 
     Policy, Organization, and Priorities Act.--(1) Title IV of 
     the National Science and Technology Policy, Organization, and 
     Priorities Act of 1976 (42 U.S.c. 6651) is amended to read as 
     follows:

          ``TITLE IV--NATIONAL SCIENCE AND TECHNOLOGY COUNCIL

       ``Sec. 401. There is established a National Science and 
     Technology Council (hereafter in this title referred to as 
     the `Council').
       ``Sec. 402. Within 30 days after the date of enactment of 
     the National Competitiveness Act of 1994, the President shall 
     submit to Congress a report that outlines the composition and 
     functions of the Council.
       ``Sec. 403. (a) The Council shall assume the 
     responsibilities and authorities of the Federal Coordinating 
     Council for Science, Engineering, and Technology, the 
     National Space Council, and the National Critical Materials 
     Council.
       ``(b) Executive departments and agencies shall make 
     resources, including, but not limited to, personnel, office 
     support, and printing, available to the Council.
       ``(c) The Council is authorized to establish such 
     committees and working groups as it may require.''.
       (2) The Federal Coordinating Council for Science, 
     Engineering, and Technology established by Public Law 94-282 
     and by Executive Order 12039, the National Space Council 
     established by Public Law 100-685 and Executive Order 12675, 
     and the National Critical Materials Council established by 
     Public Law 98-373 are hereby abolished.
       (3) Section 207(c) of the National Science and Technology 
     Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
     6616(c)) is amended--
       (A) by amending paragraph (1) to read as follows:
       ``(1) appoint such officers and employees as deemed 
     necessary to perform the functions now or hereafter vested in 
     the Director without regard to any provision of law 
     regulating the employment or compensation of persons in the 
     Government service, at rates not to exceed the rate of pay 
     for level VI of the Senior Executive schedule as provided 
     pursuant to section 5382 of title 5, the United States Code, 
     and to prescribe their duties;''; and
       (B) by striking ``and'' at the end of paragraph (2); by 
     striking the period at the end of paragraph (3) and inserting 
     in lieu thereof ``; and''; and by adding at the end the 
     following new paragraph:
       ``(4) accept voluntary and uncompensated services, 
     notwithstanding the provisions of section 1342, title 31, 
     United States Code.''.

     SEC. 304. TECHNOLOGY MONITORING AND COMPETITIVENESS 
                   ASSESSMENT.

       Section 101 of the Stevenson-Wydler Technology Innovation 
     Act of 1980, as redesignated by section 213(2) of this Act, 
     is amended by striking subsection (e) and inserting in lieu 
     thereof the following new subsections:
       ``(e) Office of Technology Monitoring and Competitiveness 
     Assessment.--(1) The Secretary, through the Under Secretary, 
     shall establish within the Technology Administration an 
     Office of Technology Monitoring and Competitiveness 
     Assessment, to collect, evaluate, assess, and disseminate to 
     United States industry, State and local governments, 
     nonprofit organizations, and other interested parties 
     information on--
       ``(A) foreign science and technology, specifically 
     information assessing foreign capabilities relative to the 
     United States;
       ``(B) policies and programs used by foreign governments and 
     industries to develop and apply economically important 
     critical technologies, how these policies and programs 
     compare with public and private activities in the United 
     States, and the effects that these foreign policies and 
     programs have on the competitiveness of United States 
     industry; and
       ``(C) the way in which the economic competitiveness of 
     United States industry can be enhanced through Federal 
     programs, including Department of Commerce programs, and 
     evaluations of the effectiveness of Federal technology 
     programs in helping to promote United States industrial 
     competitiveness and economic growth.
       ``(2) Based on the information gathered under paragraph 
     (1), the President, with the assistance of the Secretary, 
     shall submit to Congress an annual report on United States 
     technology and competitiveness analyzing the condition of 
     United States technology relative to major trading partners, 
     key trends in foreign technology and competitiveness policies 
     and targeting, and the degree to which Federal programs are 
     helping the United States to stay competitive with other 
     countries and create domestic employment opportunities.
       ``(3) The Office of Technology Monitoring and 
     Competitiveness Assessment is authorized to--
       ``(A) act as a focal point within the Federal Government 
     for the collection and dissemination, including electronic 
     dissemination, of information on foreign process and product 
     technologies, including information collected under the 
     Japanese Technical Literature Program;
       ``(B) work and, as appropriate, entered into cooperative 
     arrangement with sector-specific industry trade associations 
     or consortia to define the information desire by industry;
       ``(C) compile and make available the extensive foreign 
     technology monitoring and assessment information already 
     collected and analyzed by the Federal Government;
       ``(D) as appropriate, enter into controlled access 
     agreements with other Federal agencies to fill the industry's 
     information needs;
       ``(E) act as an electronic clearinghouse for such 
     information or otherwise provide for such a clearinghouse;
       ``(F) direct and fund the collection of additional related 
     information;
       ``(G) direct and fund analysis of foreign research and 
     development activities, technical capabilities, workplace 
     practices, particularly in technical areas where the United 
     States is considered to be at par or lagging foreign 
     capabilities;
       ``(H) establish a program to identify technical areas 
     needing a full-scale technical evaluation, and provide, on a 
     cost-shared basis to private sector or government-industry 
     joint ventures, grants to conduct the evaluation; and
       ``(I) work with the Department of State to place technical 
     experts from the Institute and other Federal laboratories 
     into United States embassies to serve as technology attaches 
     and counselors.
       ``(f) Fellowship Program.--(1) The Secretary, acting 
     through the Under Secretary, shall establish and administer a 
     fellowship program to support Technology Fellows to assist 
     the Under Secretary in carrying out activities under 
     subsection (e) relating to those countries that are major 
     competitors of the United States in critical technologies, 
     and to identify opportunities for technology transfer to the 
     United States or technological collaboration for United 
     States industries.
       ``(2) Technology Fellows shall--
       ``(A) regularly report to the Department of Commerce on 
     work planned, in progress, and accomplished; and
       ``(B) provide support to the Department of Commerce as 
     requested by that Department.
       ``(3) Fellowships awarded under the program established 
     under this subsection shall--
       ``(A) be awarded for a period of 2 years;
       ``(B) be reasonable and appropriate; and
       ``(C) include provisions for living and office arrangements 
     in the host country.
       ``(4) Only individuals who--
       ``(A) have at least a bachelors degree in engineering or 
     science; and
       ``(B) have at least 5 years of work experience in 
     manufacturing or technology development,

     shall be eligible for a fellowship under this program.''.

     SEC. 305. RECOUPMENT.

       Section 28 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278n), as amended by this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(n)(1) Any transaction providing assistance under this 
     section may include a clause that requires the recipient to 
     make payments to the Department of Commerce as a condition of 
     receiving such assistance.
       ``(2) There is established on the books of the Treasury a 
     separate account for the Advanced Technology Program 
     established under this section. Amounts received by the 
     United States pursuant to a requirement imposed under 
     paragraph (1) may be credited to the extent authorized by the 
     Secretary, to the account established under this paragraph. 
     Amounts so credited shall be merged with other funds in the 
     account and shall be available, to the extent provided in 
     advance in appropriations Acts, for the same purposes and the 
     same period for which other funds in such account are 
     available.''.

     SEC. 306. TECHNOLOGY FINANCING PILOT PROGRAM.

       The Stevenson-Wydler Technology Innovation Act of 1980 (15 
     U.S.C. 3701 et seq.), as amended by title II of this Act, is 
     further amended by adding at the end the following new title:

             ``TITLE III--ADDITIONAL ASSISTANCE TO INDUSTRY

     ``SEC. 301. FINDING AND STATEMENT OF POLICY.

       ``Congress finds and declares the following:
       ``(1) In recent years, United States technology firms 
     appear to have had increasing difficulty financing the 
     development and early-stage commercialization of important 
     new critical civilian technologies. Venture capital is less 
     available than in past years; banks appear less willing to 
     provide loans; and medium-sized as well as small companies 
     often have problems financing long-term technology projects.
       ``(2) This difficulty in obtaining financing particularly 
     hurts those technology firms which face foreign competitors 
     which have received substantial direct or indirect financial 
     help from their respective governments.
       ``(4) The Nation would benefit from a technology financing 
     pilot program designed to assist, on an experimental basis, 
     private-sector venture capital entities which, in turn, can 
     select and support the most promising and valuable long-term 
     United States technology projects.

     ``SEC. 302. TECHNOLOGY FINANCING PILOT PROGRAM.

       ``(a) Establishment of Program.--(1) There is established a 
     Department of Commerce-Small Business Administration Pilot 
     Technology Financing Partnership Program (in this section 
     referred to as the `Pilot Program').
       ``(2) The Pilot Program shall be operated under the 
     direction of a Department of Commerce-Small Business 
     Administration Venture Capital Licensing Committee (in this 
     section referred to as the `Licensing Committee'), which 
     shall consist of--
       ``(A) three Department of Commerce designees appointed by 
     the Secretary, one of whom shall be the Under Secretary for 
     Technology and shall serve as chair of the Licensing 
     Committee, and the other two of whom shall be technology 
     experts, at least one of whom shall also be a finance and 
     investment expert; and
       ``(B) two Small Business Administration designees who are 
     appointed by the Administrator of the Small Business 
     Administration (in this section referred to as the 
     `Administrator') who shall be finance and investment experts.
       ``(3) Under the Pilot Program, for the purpose of 
     stimulating and expanding the flow of private capital to 
     eligible technology firms and eligible joint ventures--
       ``(A) the Licensing Committee may license, pursuant to 
     joint regulations promulgated under paragraph (4), private 
     sector entities, to be known as `civilian technology 
     investment companies'; and
       ``(B) to the extent directed by the Secretary and the 
     Administrator and provided in advance in appropriations Acts, 
     and in accordance with the operating plan developed under 
     subsection (f), the Licensing Committee may authorize the 
     Small Business Administration to assist financially such 
     civilian technology investment companies.
       ``(4) The Secretary and the Administrator, acting through 
     the Licensing Committee, shall promulgate such regulations 
     (in this section referred to as the `joint regulations') as 
     shall be necessary to carry out the Pilot Program. Such joint 
     regulations shall reflect that the Administrator will have 
     primary responsibility for executing the Pilot Program, using 
     Small Business Administration personnel and the programmatic 
     authority provided in this section, and applicable law. In 
     accordance with the operating plan developed by the Licensing 
     Committee under subsection (f), the Administrator may issue 
     regulations modifying and augmenting existing Small Business 
     Administration authority or program criteria, as necessary, 
     to accommodate the special needs of the Pilot Program. Those 
     Small Business Administration regulations which are modified 
     or adopted to facilitate the Pilot Program shall also be 
     reviewed by the Licensing Committee and, if approved by the 
     Licensing Committee, shall become part of the joint 
     regulations.
       ``(5) The Secretary shall, utilizing Department of Commerce 
     technology personnel and the programmatic authority provided 
     in this section and under applicable law, institute and 
     implement a complementary information and technical 
     assistance pilot program designed to facilities matches 
     between high-technology companies seeking financing and 
     venture capitalists looking for meritorious early-stage 
     critical technology investments.
       ``(6) Such funds as may be appropriated through this Act or 
     any other Act to the Department of Commerce to implement the 
     Pilot Program may be transferred by the Secretary to the 
     Small Business Administration, as necessary to carry out the 
     purposes of this section, in accordance with subsection 
     (c)(1).
       ``(b) Activities of Licensees.--(1) Each civilian 
     technology investment company licensed under this section may 
     provide venture capital and loans to eligible technology 
     firms and eligible joint ventures in such manner and under 
     such terms as the licensee may fix in accordance with the 
     joint regulations. Civilian technology investment companies 
     may provide venture capital and loan directly or in 
     coinvestments with other investors. The type of financing to 
     be provide shall be determined by the Licensing Committee, 
     and shall include but shall not be limited to that provided 
     by the Small Business Act or the Small Business Investment 
     Act of 1958, or any regulation promulgated thereunder.
       ``(2) Each civilian technology investment company shall 
     have authority to borrow money and to issue its debentures, 
     promissory notes, securities, or other obligations under such 
     general conditions and subject to such limitations and 
     regulations as prescribed in the joint regulations.
       ``(c) Assistance to Licensees.--(1) In order to encourage 
     the formation and growth of civilian technology investment 
     companies, the Licensing Committee is authorized, to the 
     extent that funds are made available to the Department of 
     Commerce in appropriations Acts, to transfer such funds as 
     may be necessary to the Small Business Administration to 
     purchase (or guarantee the timely payment of all principal, 
     interest, and dividends, as scheduled, on) debentures or 
     participating, nonvoting preferred securities issued by such 
     companies, on such terms and conditions as are appropriate 
     pursuant to the joint regulations to carry out the purposes 
     of this section. The Small Business Administration is also 
     authorized, in accordance with sections 321 and 322 of the 
     Small Business Investment Act of 1958, and regulations 
     promulgated thereunder, to issue and guarantee such trust 
     certificates as are necessary and appropriate to provide 
     funding for qualified civilian technology investment 
     companies. Such issuance and funding shall take place in the 
     manner and on the terms and conditions as the Licensing 
     Committee directs and shall not be limited to the terms and 
     conditions that the Small Business Administration utilities 
     for funding of small business investment companies under the 
     Small Business Investment Act of 1958.
       ``(2) Guarantees and purchases of debentures and equity 
     securities under this subsection shall be made on such terms 
     and conditions as are necessary to ensure that the cost of 
     the program established under this section shall not exceed 
     15 percent of its corresponding credit authority in any 
     fiscal year. For the purposes of this subsection, the term 
     `cost' shall have the same meaning given such term in section 
     502(5) of the Federal Credit Reform Act of 1990, and the term 
     `credit authority' shall have the same meaning given such 
     term in section 3 (10) of the Congressional Budget Act of 
     1974.
       ``(d) Purposes and Requirements.--The Licensing Committee 
     shall require that any civilian technology investment company 
     licensed and assisted under this section shall--
       ``(1) focus primarily on providing patient early-stage 
     capital, either loans or equity investments, to eligible 
     technology firms and eligible joint ventures in the United 
     States in order to help those firms and joint ventures 
     finance and accelerate the development and early-stage 
     commercialization of critical civilian technologies;
       ``(2) provide financial assistance to critical civilian 
     technology projects at eligible technology firms and eligible 
     joint ventures; provided, however, that the Department of 
     Commerce members of the Licensing Committee shall determine 
     whether the products, processes, and service provided by 
     firms assisted by a licensee in fact will assist in 
     developing United States critical technologies;
       ``(3) demonstrate to the Licensing Committee credible 
     procedures for ensuring that investments are made in critical 
     technology projects for which eligible technology firms 
     cannot obtain necessary financing solely through commercial 
     capital markets; and
       ``(4) work with the Licensing Committee to establish 
     methods to identify and evaluate projects to be assisted by 
     the licensee, using, as appropriate, the existing expertise 
     of the National Institute of Standards and Technology, and 
     other organizations, including Regional Centers for the 
     Transfer of Manufacturing Technology, universities, and other 
     research institutions.
       ``(e) Payments.--All amounts received by the Small Business 
     Administration from the payment of dividends, any profit 
     allocation, the redemption of securities pursuant to this 
     section, and any fees paid to the United States by a civilian 
     technology investment company licensed pursuant to this 
     section, shall be deposited in the Treasury, in accordance 
     with the joint regulations and the requirements of the 
     Federal Credit Reform Act of 1990.
       ``(f) Operating Plan Effective Date; and Evaluation.--(1) 
     The Secretary and the Administrator, acting through the 
     Licensing Committee, shall jointly and in consultation with 
     State and local governments, industry, and the financial 
     community, prepare and submit to Congress within one year 
     after the date of enactment of this title, an operating plan 
     and draft joint regulations to carry out this section. In 
     preparing such a plan, the Secretary and Administrator shall 
     consider and evaluate alternative approaches to help 
     technology firms and joint ventures in the United States 
     develop and commercialize critical civilian technologies. As 
     part of their report, they shall make recommendations to 
     Congress as they deem appropriate.
       ``(2) Except for the requirements set forth in subsection 
     (a) and paragraph (1) of this subsection, the provisions of 
     this section shall not take effect until 6 months after the 
     date of the issuance of the report required in paragraph (1).
       ``(3) After appropriations are provided for the Pilot 
     Program authorized under this section, the Licensing 
     Committee, in consultation with industry and the financial 
     community, shall evaluate annually the effectiveness of the 
     Program and submit an annual report to appropriate committees 
     of Congress on the findings resulting from such evaluation. 
     Such report shall contain, on a confidential basis, 
     appendices which include, but are not necessarily limited to, 
     the type and amount of assistance provided to licensees under 
     this section, key characteristics of such licensees, the 
     number and size in net worth of the technology firms and 
     joint ventures (and the participants comprising them) 
     assisted by each licensee, the amount of assistance provided 
     to each eligible technology firm or eligible joint venture, 
     and the types of technology each eligible technology firm or 
     joint venture is developing and commercializing. Such report 
     also shall contain an analysis of the Pilot Program's impact 
     on the Small Business Administration's Small Business 
     Investment Company program.
       ``(4) Five years after appropriations have been provided 
     for the Pilot Program authorized under this section, the 
     General Accounting Office, in consultation with industry and 
     the financial community, shall evaluate the effectiveness of 
     the Program and submit a report to appropriate committees of 
     Congress on the findings resulting from such evaluation. Such 
     evaluation shall include an analysis of the Pilot Program's 
     impact on the Small Business Administration's Small Business 
     Investment Company program.
       ``(g) Definitions.--As used in this section, the term--
       ``(1) `appropriate committees of Congress' means the 
     Committee on Science, Technology, and Space and Committee on 
     Small Business of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation and 
     Committee on Small Business of the Senate;
       ``(2) `critical civilian technology' means a technology not 
     exclusively military which is identified in one or more of 
     the biennial national critical technologies reports required 
     under section 603 of the National Science and Technology 
     Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
     6683);
       ``(3) `eligible joint venture' means a joint research and 
     development venture or joint production venture, as defined 
     in section 2 of the National Cooperative Research Act of 1984 
     (5 U.S.C. 4301)--
       ``(A) which meets the requirements of section 28(d)(9) of 
     the National Institute of Standards and Technology Act (15 
     U.S.C. 278n(d)(9));
       ``(B) whose purpose in seeking financing is the development 
     of products, processes, and services based on critical 
     civilian technologies; and
       ``(C) which meets size standards set by the Licensing 
     Committee, which size standards need not comply with the 
     Small Business Act or the Small Business Investment Act of 
     1958, or any regulation promulgated thereunder of 
     interpretation thereof;
       ``(4) `eligible technology firm' means a company--
       ``(A) which meets the requirements of section 28(d)(9) of 
     the National Institute of Standards and Technology Act (15 
     U.S.C. 278n(d)(9));
       ``(B) whose purposes in seeking financing is the 
     development of products, processes, and services based on 
     critical civilian technologies; and
       ``(C) which meets size standards set by the Administrator;
       ``(4) `finance and investment expert' means an individual 
     who has administered or participated in a venture capital or 
     similar financing program, or has operated a venture capital 
     company; and
       ``(5) `licensee' means a civilian technology investment 
     company licensed by the Licensing Committee pursuant to this 
     section.''.

          TITLE IV--ADDITIONAL COMMERCE DEPARTMENT PROVISIONS

     SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY ADVISORY BOARD.

       The Stevenson-Wydler Technology Innovation Act of 1980 (as 
     amended by sections 211 and 213 or this Act) is further 
     amended by inserting after section 103 (as added by section 
     211 of this Act) the following new section:

     ``SEC. 104. DEPARTMENT OF COMMERCE TECHNOLOGY ADVISORY BOARD.

       ``(a) Establishment.--There is established a Department of 
     Commerce Technology Advisory Board (in this section referred 
     to as the `Advisory Board'), the purpose of which is to 
     advise the Secretary, Under Secretary, and Director on the 
     plans, programs, and policies of the Technology 
     Administration, including ways in which to--
       ``(1) promote the development and rapid application of 
     advanced commercial technologies, including advanced 
     manufacturing technologies such as skill-based production 
     technologies;
       ``(2) strengthen the programs of the Technology 
     Administration; and
       ``(3) generally improve the global competitiveness of 
     industries within the United States.
       ``(b) Composition.--The Advisory Board shall be composed of 
     at least 17 members, appointed by the Under Secretary from 
     among individuals who, because of their experience and 
     accomplishments in technology development, business 
     development, 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 one member to serve as chairman. 
     Membership of the Advisory Board shall be composed of--
       ``(1) representatives of--
       ``(A) United States small businesses;
       ``(B) United States manufacturers;
       ``(C) research universities and independent research 
     institutes;
       ``(D) State and local government agencies involved in 
     industrial extension;
       ``(E) national laboratories;
       ``(F) industrial, worker, and technical and professional 
     organization; and
       ``(G) financial organization; and
       ``(2) other individuals that possess important insight to 
     issues of national competitiveness.
     The Under Secretary shall make an effort to ensure the 
     appointment of socially and economically disadvantaged 
     individuals (within the meaning of section 8 (a) (5) and (6) 
     of the Small Business Act, and including women) to the 
     Advisory Board.
       ``(c) Meetings.--(1) The chairman shall call the first 
     meeting of the Advisory Board not later than 90 days after 
     the date of enactment of this section.
       ``(2) The Advisory Board shall meet at least once every 6 
     months, and at the call of the Under Secretary.
       ``(d) 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.
       ``(e) Consultation.--In carrying out this section, the 
     Under Secretary shall consult with other agencies, as 
     appropriate. The Advisory Board, as appropriate, shall 
     establish communication and coordination mechanisms with 
     other Federal advisory committees to help ensure integrated 
     Federal private consideration of technology and manufacturing 
     policies and programs.
       ``(f) Termination.--Section 14 of the Federal Advisory 
     Committee Act shall not apply to the Advisory Board.
       ``(g) Secretarial Discretion.--Notwithstanding any other 
     provision of this section, the Secretary shall have the 
     discretion to decide whether to establish the Advisory Board 
     or create a more cost-effective way to achieve the goal of 
     closer cooperation with industry. If the Secretary exercises 
     such discretion and establishes an alternative mechamism, the 
     Under Secretary shall make an effort to ensure the 
     participation of socially and economically disadvantaged 
     individuals (within the meaning of section 8(a)(5) and (6) of 
     the Small Business Act, and including women) in the 
     alternative mechanism.''.

     SEC. 402. INTERNATIONAL STANDARDIZATION.

       (a) Findings.--The Congress finds that--
       (1) private sector consensus standards are essential to the 
     timely development of competitive products;
       (2) Federal Government contribution of resources and more 
     active participation in the voluntary standards process in 
     the United States can increase the quality of United States 
     standards, increase their compatibility with the standards of 
     other countries, and ease access of products manufactured by 
     United States manufacturers to foreign markets; and
       (3) the Federal Government, working in cooperation with 
     private sector organizations including trade associations, 
     engineering societies, technical organizations, and other 
     standards-setting bodies can effectively promote Federal 
     Government use of United States consensus standards and, 
     where appropriate, the adoption and Federal Government use of 
     international standards.
       (b) Standards Pilot Program.--Section 104(e) of the 
     American Technology Preeminence Act of 1991 (Public Law 102-
     245; 106 Stat. 10) is amended--
       (1) by inserting ``(1)'' before ``Pursuant to the'';
       (2) By striking ``matching funds'' and inserting in lieu 
     thereof ``financial contributions deemed appropriate by the 
     Secretary''; and
       (3) by adding at the end the following new paragraph:
       ``(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 to include other countries that request 
     assistance with standards-related activities from official 
     representatives of the United States Government. The 
     Institute may enter into additional contracts with non-
     Federal organizations representing United States companies 
     described in section 28(d)(9)(B) of the National Institute of 
     Standards and Technology Act (15 U.S.C. 278n(d)(9)(B)) or 
     with United States-based professional societies and other 
     standards-setting bodies that participate in the development 
     of standards. 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 and shall seek, as 
     the Director deems appropriate, to promote the adoption of 
     international standards supported by United States industry, 
     and shall seek to assist private sector developers of 
     standards, including engineering societies which participate 
     in the development of standards in expediting the development 
     of domestic and other standards which enable the introduction 
     of technologies, products, or technology-based services which 
     are being delayed due to the lack of available standards. The 
     Institute and such contractors shall, in carrying out the 
     preceding sentence, cooperate 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.''.
       (c) Report on Global Standards.--(1) Section 508(a) of the 
     American Technology Preeminence Act of 1991 (15 U.S.C. 3701 
     note) is amended--
       (A) by inserting ``standards development and 
     international'' after ``a thorough review of international'';
       (B) by redesignating paragraphs (1) through (5) as 
     paragraphs (2) through (6), respectively; and
       (C) by inserting before paragraph (2), as so redesignated, 
     the following new paragraph:
       ``(1) Current and potential future roles of the Federal 
     Government in the development and promulgation of domestic 
     and global product and process standards.''.
       (2) The Secretary, in consultation with the Institute and 
     the Department of Commerce Technology Advisory Board 
     established under section 104 of the Stevenson-Wydler 
     Technology Innovation Act of 1980 (as added by section 401 of 
     this Act) and with, as appropriate, the active participation 
     of the private sector, shall submit to the Congress a report 
     describing the appropriate roles of the Department of 
     Commerce in aid to United States companies in achieving 
     conformity assessment and accreditation and otherwise 
     qualifying their products in foreign markets, through the 
     development and promulgation of domestic and global product 
     and quality standards, and through Department of Commerce 
     programs related to conformity assessment and accreditation 
     procedures based upon such standards, including a discussion 
     of the extent to which each of the policy options provided in 
     the March 1992 Office of Technology Assessment report on 
     global standards, contributes to meeting the goals of--
       (A) increasing the international adoption of standards 
     beneficial to United States industries; and
       (B) improving the coordination of United States 
     representation at international standards setting bodies.

     SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.

       (a) Restriction.--Section 111(c)(3) of the Stevenson-Wydler 
     Technology Innovation Act of 1980, as so redesignated by 
     section 213(5) of this Act, is amended to read as follows:
       ``(3) No award shall be made within any category or 
     sucategory if there are no qualifying enterprises in that 
     category or subcategory.''.
       (b) Categories in Which Award May Be Given.--(1) Section 
     111(c)(1) of the Stevenson-Wydler Technology Innovation Act 
     of 1980, as so redesignated by section 213(5) of this Act, is 
     amended by adding at the end the following new subparagraph:
       ``(D) Educational institutions.''.
       (2)(A) Within 2 years after the date of enactment of this 
     Act, the Secretary shall submit to 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 111(d)(1) of the Stevenson-Wydler 
     Technology Innovation Act of 1980, as so redesignated by 
     section 213(5) of this Act; and
       (iii) a plan for funding awards described in clause (i).
       (B) In preparing the report required under subparagraph 
     (A), the Secretary 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 shall not accept applications for awards 
     described in subparagraph (A)(i) until after the report 
     required under subparagraph (A) is submitted to Congress.

     SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.

       Section 202(d)(2)(A) of the Stevenson-Wydler Technology 
     Innovation Act of 1980, as so redesignated by section 213(7) 
     of this Act, by inserting ``including Federal test and 
     evaluation facilities,'' after ``by a Federal agency,''.

     SEC. 405. PROGRAM EVALUATIONS.

       Section 101 of the Stevenson-Wydler Technology Innovation 
     Act of 1980, as so redesignated by section 213(2) of this Act 
     and as amended by this Act, is further amended by adding at 
     the end the following new subsection:
       ``(g) Program Evaluations.--(1) The Secretary, through the 
     Under Secretary, shall--
       ``(A) provide for the conduct of research and analyses to 
     advance knowledge of the ways in which the economic 
     competitiveness of United States companies can be enhanced 
     through Federal programs established under the National 
     Competitiveness Act of 1994 or the amendments made by that 
     Act; and
       ``(B) as appropriate, provide for evaluations of Federal 
     technology programs established or expanded under the 
     National Competitiveness Act of 1994 or the amendments made 
     by that Act in order to judge their effectiveness and make 
     recommendations to improve their contribution to United 
     States competitiveness.
       ``(2) All executive departments and agencies shall assist 
     the Secretary in carrying out this subsection as appropriate.
       ``(3) Nothing in this subsection shall authorize the 
     release of information to, or the use of information by, the 
     Secretary or Under Secretary in a manner inconsistent with 
     law or any procedure established pursuant thereto.
       ``(4) The head of any Federal agency may detail such 
     personnel and may provide such services, with or without 
     reimbursement, as the Secretary may request to assist in 
     carrying out the activities required under this 
     subsection.''.

     SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECHNOLOGIES.

       Within 9 months after the date of enactment of this Act, 
     the Critical Technologies Institute established under section 
     822 of the National Defense Authorization Act for Fiscal Year 
     1991 (42 U.S.C. 6686) shall, after consultation with the 
     private sector and appropriate officials from other Federal 
     agencies, submit to Congress a report on advanced lithography 
     technologies for the production of semiconductor devices. The 
     report shall include the Critical Technologies Institute's 
     evaluation of the likely technical and economic advantages 
     and disadvantages of each such technology, an analysis of 
     current private and Government research to develop each such 
     technology, and any recommendations the Critical Technologies 
     Institute may have regarding future Federal support for 
     research and development in advanced lithography.

     SEC. 407. CLEARINGHOUSE ON STATE AND LOCAL INITIATIVES

       Section 105(a) of the Stevenson-Wydler Technology 
     Innovation Act of 1980, as so redesignated by section 213(5) 
     of this Act, is amended by striking ``Office of Productivity, 
     Technology, and Innovation'' and inserting in lieu thereof 
     ``Technology Administration''.

     SEC. 408. WIND ENGINEERING RESEARCH PROGRAM.

       (a) Short Title.--This section may be cited as the ``Wind 
     Engineering Program Act of 1994''.
       (b) Findings.--Congress finds and declares the following:
       (1) Hurricanes and tornadoes kill more Americans and 
     destroy more property than any other natural disaster.
       (2) Each year, in the United States, extreme winds cause 
     billions of dollars of damage to homes, schools, and other 
     buildings, roads and bridges, electrical power distribution 
     networks, and communications networks.
       (3) Research on wind and wind engineering has resulted in 
     improved methods for making buildings and other structures 
     less vulnerable to extreme winds, but additional research 
     funding is needed to develop new, improved, and more cost-
     effective methods of wind-resistant construction.
       (4) Federal funding for wind engineering research has 
     decreased drastically over the last 20 years.
       (5) Wind research has been hampered by a lack of data on 
     near-surface wind speed and distribution during hurricanes, 
     tornadoes, and other severe storms.
       (6) Many existing methods for wind-resistant construction 
     are inexpensive and easy to implement but often they are not 
     applied because the construction industry and the general 
     public are unaware of such methods.
       (7) Various Federal agencies have important roles to play 
     in wind engineering research, but at present there is little 
     interagency cooperation in this area.
       (8) Establishment of a Federal Wind Engineering Program 
     would result in new technologies for wind-resistant 
     construction, broader application of such technologies in 
     construction, and ultimately decreased loss of life and 
     property due to extreme winds.
       (c) Purpose.--The purpose of this section is to create a 
     Wind Engineering Program within the National Institute of 
     Standards and Technology, which would--
       (1) provide for wind engineering research;
       (2) serve as a clearinghouse for information on wind 
     engineering; and
       (3) improve interagency coordination on wind engineering 
     research between the National Institute of Standards and 
     Technology, the National Oceanic and Atmospheric 
     Administration, the National Science Foundation, the Federal 
     Aviation Administration, and other appropriate agencies.
       (d) Establishment.--Within the National Institute of 
     Standards and Technology, there shall be established a Wind 
     Engineering Program which shall--
       (1) conduct research and development, in cooperation with 
     the private sector and academia, on new methods for 
     mitigating wind damage due to tornadoes, hurricanes, and 
     other severe storms;
       (2) fund construction and maintenance of wind tunnels and 
     other research facilities needed for wind engineering 
     research;
       (3) promote the application of existing methods for, and 
     research results on, reducing wind damage to buildings that 
     are usually incompletely- or non-engineered, such as single 
     family dwellings, mobile homes, light industrial buildings, 
     and small commercial structures;
       (4) transfer technology developed in wind engineering 
     research to the private sector so that it may be applied in 
     building codes, design practice, and construction;
       (5) conduct, in conjunction with the National Oceanic and 
     Atmospheric Administration, post-disaster research following 
     hurricanes, tornadoes, and other severe storms to evaluate 
     the vulnerability of different types of buildings to extreme 
     winds;
       (6) serve as a point of contact for dissemination of 
     research information on wind engineering and work with the 
     private sector to develop education and training programs on 
     construction techniques, developed from research results, for 
     reducing wind damage;
       (7) work with the National Oceanic and Atmospheric 
     Administration, the Federal Aviation Administration, and 
     other agencies as is appropriate, on meteorology programs to 
     collect and disseminate more data on extreme wind events; and
       (8) work with the National Science Foundation to support 
     and expand basic research on wind engineering.

     SEC. 409. ENVIRONMENTALLY SENSITIVE CONSTRUCTION 
                   TECHNOLOGIES.

       (a) Short Title.--This section may be cited as the 
     ``Environmentally Sensitive Construction Act of 1994''.
       (b) Findings and Purpose.--Congress finds the following:
       (1) As the world economy develops, environmental concerns 
     are becoming increasingly critical.
       (2) Developing the world economy through the use of 
     environmentally sound technologies will pay dividends for 
     years to come.
       (3) The United States should be a leader in developing 
     environmentally sound technologies.
       (4) As shelter is a basic human need, the development of 
     environmentally sound construction techniques should be a 
     priority area.
       (5) Establishment of a Federal Environmentally Sensitive 
     Construction Program within the Institute would result in new 
     technologies for environmentally sensitive construction, 
     broader application of such technologies in construction, and 
     an improved world economy and environment.
       (c) Establishment.--Within the Institute, there shall be 
     established a Federal Environmentally Sensitive Construction 
     Program which shall--
       (1) conduct research and development, in cooperation with 
     the private sector and academia, on construction materials 
     and techniques which result in structures which pose low 
     environmental and health risks for their occupants and 
     minimize waste generation and other environmental problems;
       (2) as appropriate and permitted by appropriations, support 
     academic research projects in regions around the Nation to 
     develop and demonstrate environmentally sensitive 
     construction; and
       (3) disseminate information on environmentally sensitive 
     construction technology.

     SEC. 410. AMERICAN WORKFORCE QUALITY.

       (a) Workforce Activities.--In addition to existing 
     responsibilities and authorities prescribed by law, the 
     Secretary, through the Director and after consultation with 
     the Secretary of Labor, shall ensure that Regional Centers 
     for the Transfer of Manufacturing Technology and 
     Manufacturing Outreach Centers utilize, when appropriate, 
     their expertise and capability to assist managers and workers 
     of manufacturers in the United States in effectively 
     utilizing and operating advanced manufacturing technologies 
     and modern technologies--
       (1) by making available assessments of the needs of 
     manufacturers in the United States for worker training in the 
     effective utilization and operation of specific technologies 
     the manufacturers have adopted or are planning to adopt;
       (2) by making available to manufacturers in the United 
     States information on commercially and publicly provided 
     worker training services, including those provided by United 
     States sources of technologies, in the effective utilization 
     and operation of specific technologies the manufacturers have 
     adopted or are planning to adopt; and
       (3) by providing information to client firms and their 
     workers to enable them effectively to utilize and operate 
     specific technologies that the firms have adopted or plan to 
     adopt.
       (b) Workforce Analysis and Information Dissemination.--In 
     addition to existing responsibilities and authorities 
     prescribed by law, the Secretary, through the Director and in 
     consultation with the Secretary of Labor and other 
     appropriate Federal officials and with leaders of industry 
     and labor, shall assist managers and other workers of 
     manufacturers in the United States in effectively utilizing 
     and operating advanced manufacturing technologies and modern 
     technologies--
       (1) by establishing and managing a clearinghouse for 
     information, to be available through an appropriate entity to 
     the Regional Centers for the Transfer of Manufacturing 
     Technology, to the Manufacturing Outreach Centers when they 
     are established, to other technology training entities, or 
     directly to manufacturers, on the best available training 
     material and services for the effective utilization and 
     operation of specific advanced manufacturing technologies and 
     modern technologies;
       (2) by encouraging United States providers of advanced 
     manufacturing technologies and modern technologies for 
     manufacturers to develop training material specifically 
     designed for the managers and other workers responsible for 
     utilizing and operating such technologies; and
       (3) by establishing as an important criterion in the 
     assessment of advanced manufacturing technologies and modern 
     technologies the availability of training material 
     specifically designed for the managers and other workers 
     responsible for utilizing and operating such technologies.

     SEC. 411. SEVERABILITY.

       If any provision of this Act or the amendments made by this 
     Act, or the application thereof to any person or 
     circumstance, is held invalid, the remainder of this Act and 
     the amendments made by this Act, and the application thereof 
     to other persons or circumstances, shall not be affected 
     thereby.

     SEC. 412. 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 Act, or under any amendment 
     made by this Act, 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, CFR, 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 Act, or by any amendment 
     made by this Act, 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, 1995, shall report to 
     the Congress on procurements covered under this subsection of 
     products that are not domestic products.
       (c) Purchase of American Made Equipment and Products.--(1) 
     It is the sense of Congress that any recipient of a grant 
     under this Act, or under any amendment made by this Act, 
     should, when practical, purchase only American made equipment 
     and products when expending grant monies.
       (2) In allocating grants under this Act, or under any 
     amendment made by this Act, the Secretary shall provide to 
     each recipient a notice describing the statement made in 
     paragraph (1) by the Congress.
       (d) Definition.--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. 413. PERSONNEL.

       Notwithstanding any other provision of law, the personnel 
     management demonstration project, established under section 
     10 of the National Bureau of Standards Authorization Act for 
     Fiscal Year 1987 (15 U.S.C. 275 note), is extended until 
     December 31, 1998.

               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

     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 and the Assistant Secretary 
     of Commerce for Technology Policy, in addition to any other 
     amounts authorized for such purposes, for the Office of the 
     Under Secretary--
       (1) $6,000,000 for fiscal year 1994;
       (2) $11,300,000 for fiscal year 1995, of which $2,000,000 
     are authorized for program evaluations under section 101(g) 
     of the Stevenson-Wydler Technology Innovation Act of 1980, as 
     added by section 405 of this Act; and
       (3) $14,000,000 for fiscal year 1996.
       (b) National Technical Information Service Facilities 
     Study.--As part of its modernization effort and before 
     signing any lease for a new facility, 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, and 
     manipulate in electronic form, 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) Intramural Scientific and Technical Research and 
     Services.--(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, 
     $240,988,000 for fiscal year 1994, $320,000,000 for fiscal 
     year 1995, and $350,000,000 for fiscal year 1996.
       (2) Of the amounts authorized under paragraph (1)--
       (A) $1,000,000 for each of the fiscal years 1994, 1995, and 
     1996 are authorized only for the evaluation of nonenergy-
     related inventions;
       (B) $8,054,000 for fiscal year 1994 and $8,113,000 for each 
     of the fiscal years 1995 and 1996 are authorized only for the 
     technical competence fund; and
       (C) $5,000,000 for each of the fiscal years 1994, 1995, and 
     1996 are authorized only for the standards pilot project 
     established under section 104(e) of the American Technology 
     Preeminence Act of 1991 (Public Law 102-245; 106 Stat. 10).
       (b) Facilities.--In addition to the amounts authorized 
     under subsection (a), there are authorized to be appropriated 
     to the Secretary $62,000,000 for fiscal year 1994, 
     $110,392,000 for fiscal year 1995, and $112,000,000 for 
     fiscal year 1996, 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) Extramural Industrial Technology Services.--(1) In 
     addition to the amounts authorized under subsections (a) and 
     (b), there are authorized to be appropriated to the 
     Secretary, to carry out the extramural industrial technology 
     services activities of the Institute--
       (A) for the Manufacturing Extension Partnership, 
     $40,000,000 for fiscal year 1994, $70,000,000 for fiscal year 
     1995, and $100,000,000 for fiscal year 1996;
       (B) for the Advanced Technology Program, $200,000,000 for 
     fiscal year 1994, $475,000,000 for fiscal year 1995, and 
     $575,000,000 for fiscal year 1996; and
       (C) for quality programs at the Institute, $2,800,000 for 
     fiscal year 1994, $10,000,000 for fiscal year 1995, and 
     $10,000,000 for fiscal year 1996.
       (2) The Secretary shall ensure that audits are performed by 
     outside auditors on the programs for which funds are 
     appropriated pursuant to this subsection. The summary results 
     of such audits shall be submitted to Congress by the end of 
     each of the fiscal years 1994 and 1995, and not more than 
     $2,000,000, or 2 percent of the aggregate amount made 
     available under this subsection, whichever is greater, shall 
     be used in each such fiscal year for performing the audits.
       (d) Transfers.--(1) Funds may be transferred among the line 
     items listed in subsection (a) and among the line items 
     listed in subsection (c) 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 from 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.
       (e) Wind Engineering.--(1) There are authorized to be 
     appropriated to the Institute for the purposes of section 408 
     of this Act, $1,000,000 for fiscal year 1994 and $3,000,000 
     for each of the fiscal years 1995 and 1996.
       (2) Of the amounts appropriated under paragraph (1), no 
     less than 50 percent shall be used for cooperative agreements 
     with the National Oceanic and Atmospheric Administration, the 
     National Science Foundation, and the Federal Aviation 
     Administration, or other agencies, for wind engineering 
     research, development of improved practices for structures, 
     and the collection and dissemination of meteorological data 
     needed for wind engineering.
       (4) Environmentally Sensitive Construction Program.--There 
     are authorized to be appropriated to the Institute for the 
     purposes of section 409, $1,000,000 for fiscal year 1994 and 
     $3,000,000 for fiscal year 1995.

     SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY 
                   ADMINISTRATION.

       In addition to the amounts authorized under sections 501 
     and 502, there are authorized to be appropriated to the 
     Secretary to carry out additional duties of the Under 
     Secretary--
       (1) for the establishment and management of a technology 
     training clearinghouse, $2,000,000 for each of the fiscal 
     years 1994 and 1995 and $3,000,000 for fiscal year 1996;
       (2) for the support of policy experiments relating to 
     intelligent manufacturing systems, $2,000,000 for fiscal year 
     1995 and $4,000,000 for fiscal year 1996;
       (3) for carrying out responsibilities for technology 
     monitoring and competitiveness assessment, $10,000,000 for 
     each of the fiscal years 1994 and 1995 and $12,000,000 for 
     fiscal year 1996;
       (4) for the National Technical Information Service 
     revolving fund, $20,000,000 for each of the fiscal years 1995 
     and 1996; and
       (5) for the purpose of carrying out the technology 
     financing pilot program under section 306, $2,000,000 for 
     fiscal year 1994 to prepare the operating plan and promulgate 
     regulations required under that section and $50,000,000 for 
     each of the fiscal years 1995 and 1996 to carry out the 
     provisions of that section.

     SEC. 504. NATIONAL SCIENCE FOUNDATION.

       In addition to such other sums as may be authorized by 
     other provisions of law to be appropriated to the Director of 
     the National Science Foundation, there are authorized to be 
     appropriated to that Director, to carry out the provisions of 
     section 221, $50,000,000 for fiscal year 1994 and $75,000,000 
     for each of the fiscal years 1995 and 1996.

     SEC. 505. 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.

             TITLE VI--INFORMATION TECHNOLOGY APPLICATIONS

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Information Technology 
     Applications Act of 1994''.

     SEC. 602. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds and declares the following:
       (1) High-performance computing and high-speed networks have 
     proven to be powerful tools for improving America's national 
     security, industrial competitiveness, and research 
     capabilities.
       (2) Federal programs, such as the National High-Performance 
     Computing Program established by Congress in 1991, have 
     played a key role in maintaining United States leadership in 
     high-performance computing, especially in the defense and 
     research sectors.
       (3) High-performance computing and high-speed networking 
     have the potential to revolutionize many fields, including 
     education, libraries, health care, and manufacturing, if 
     adequate resources are invested in developing the technology 
     needed to do so.
       (4) The Federal Government should ensure that the 
     technology developed under research and development programs 
     such as the National High-Performance Computing Program can 
     be widely applied for the benefit of all Americans, including 
     Americans with disabilities.
       (5) The Federal Government, in cooperation with computer 
     users, private industry, and others, should support research 
     and development projects which will provide large economic 
     and social benefits. These projects, designed to address 
     major National Challenges, should include the development of 
     computing tools for teaching, digital libraries of electronic 
     information, computer systems to improve the delivery of 
     health care, and computer and networking technology to 
     promote United States competitiveness. These applications 
     should be designed and operated in ways which protect privacy 
     and intellectual property rights.
       (b) Purpose.--It is the purpose of this title to expand the 
     scope of the National High-Performance Computing Program to 
     identify and promote the development of applications of high-
     performance computing and high-speed networking which will 
     provide large economic and social benefits to the Nation.

     SEC. 603. INFORMATION TECHNOLOGY APPLICATIONS.

       (a) Findings, Purpose, and Definitions of High-Performance 
     Computing Act.--The High-Performance Computing Act of 1991 
     (15 U.S.C. 5501 et seq.) is amended--
       (1) in section 2, by amending paragraph (4) to read as 
     follows:
       ``(4) High-capacity and high-speed computer networks would 
     provide researchers and educators with access to computer and 
     information resources and act as test beds for further 
     research and development.'';
       (2) in section 3--
       (A) by amending paragraph (1)(A) to read as follows:
       ``(A) accelerate the creation of a universally accessible 
     communications network for the Nation;'';
       (B) in paragraph (1)(C), by striking ``available for use 
     through the Network'';
       (C) in paragraph (1)(G), by inserting ``and National 
     Challenges'' after ``Grand Challenges''; and
       (D) by striking ``and'' at the end of paragraph (1)(I); by 
     striking the period at the end of paragraph (2) and inserting 
     in lieu thereof ``; and''; and by adding after paragraph (2) 
     the following new paragraph:
       ``(3) promoting the widest possible application of high-
     performance computing and high-speed networking by--
       ``(A) identifying and addressing specific National 
     Challenges, and generally expanding Federal support for 
     research and development of high-performance computing and 
     high-speed networking, in order to--
       ``(i) improve education at all levels, from preschool to 
     adult education, including the development of new educational 
     technologies;
       ``(ii) build digital libraries of electronic information 
     accessible over computer networks;
       ``(iii) improve the provision of health care, including 
     furnishing health care providers and their patients with 
     better, more accurate, and more timely information; and
       ``(iv) increase the productivity of the Nation's industry, 
     especially in the manufacturing sector; and
       ``(B) improving coordination of Federal efforts to deploy 
     these technologies in cooperation with the private sector as 
     part of an advanced national information infrastructure.'';
       (3) in section 4, by striking paragraph (4); by 
     redesignating paragraph (5) as paragraph (7); and by 
     inserting after paragraph (3) the following new paragraphs:
       ``(4) `information infrastructure' means a network of 
     communications systems and computer systems designed to 
     exchange information among all citizens and residents of the 
     United States;
       ``(5) `National Challenge' means a technical or operational 
     difficulty or problem which, if successfully solved, will 
     result in an application of high-performance computing or 
     high-speed networking that will provide large economic and 
     social benefits to a broad segment of the Nation's populace;
       ``(6) `Network Program' means the National Research and 
     Education Network Program established under section 102; 
     and''.
       (b) National High-Performance Computing Program.--Section 
     101 of the High-Performance Computing Act of 1991 is 
     amended--
       (1) in subsection (a)(2)--
       (A) by amending subparagraphs (A) and (B) to read as 
     follows:
       ``(A) foster and encourage competition and private-sector 
     investment in networking within the telecommunications 
     industry:
       ``(B) encourage--
       ``(i) a diversity of public and private sources for 
     information products and services based on government 
     information; and
       ``(ii) the dissemination of government information to the 
     public on a timely, equitable, and affordable basis and in a 
     manner that will promote the usefulness of the information to 
     the public;''; and
       (B) by striking ``and'' at the end of subparagraph (H); by 
     striking the period at the end of subparagraph (I) and 
     inserting in lieu thereof a semicolon; and by inserting after 
     subparagraph (I) the following new subparagraphs:
       ``(J) provide for the development and, as appropriate, 
     implementation of applications of high-performance computing 
     and high-speed networking, through projects which address 
     National Challenges in the fields of education, library 
     science, health care, manufacturing, provision of government 
     information, and other appropriate fields;
       ``(K) identify each Program agency's responsibility for 
     addressing National Challenges in high-performance computing 
     and high-speed networking; and
       ``(L) provide for the development, to the extent 
     technologically feasible, of technology to protect privacy, 
     security, and intellectual property rights (including 
     copyrights).'';
       (2) in subsection (a)(4)C), by inserting ``development of 
     applications technology,'' after ``development,''; and by 
     inserting ``Program established in section 102'' after 
     ``Network''; and
       (3) in subsection (a)(4), by striking ``and'' at the end of 
     subparagraph (D); by striking the period at the end of 
     subparagraph (E) and inserting in lieu thereof a semicolon; 
     and by adding at the end the following new subparagraphs:
       ``(F) include a summary of the achievements of Federal 
     efforts during the preceding fiscal year to develop 
     technologies needed for an advanced information 
     infrastructure;
       ``(G) identify steps agencies are taking to develop 
     technology to protect privacy, security, and intellectual 
     property rights (including copyrights) for computer networks; 
     and
       ``(H) provide any recommendations regarding additional 
     action or legislation which may be required to assist in 
     achieving the purposes of this title.''; and
       (4) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Copyright Law.--Nothing in this Act shall be 
     construed to modify or otherwise change any provision of 
     title 17, United States Code.''.

     SEC. 604. APPLICATIONS FOR EDUCATION AND LIBRARIES.

       (a) National Science Foundation Activities.--Section 201 of 
     the High-Performance Computing Act of 1991 (15 U.S.C. 5521) 
     is amended--
       (1) in subsection (a), by striking ``and'' at the end of 
     paragraph (3); by striking the period at the end of paragraph 
     (4) and inserting in lieu thereof a semicolon; and by adding 
     at the end the following new paragraphs:
       ``(5) the National Science Foundation and the Department of 
     Education, in cooperation with other appropriate agencies, 
     shall provide for the development of advanced computing and 
     networking technology for use in education at all levels; and
       ``(6) the National Science Foundation, the Department of 
     Education, and other appropriate agencies shall provide for 
     the development and use of technologies needed for 
     digital libraries of computerized data and information 
     and, as appropriate, may work with private and nonprofit 
     institutions to develop prototype digital libraries to 
     serve as test beds for advanced computing systems, 
     software, standards, and methods.''; and
       (2) in subsection (b), by striking ``$305,000,000'' and 
     inserting in lieu thereof ``$339,000,000''; and by striking 
     ``$354,000,000'' and inserting in lieu thereof 
     ``$404,000,000''.
       (b) National Aeronautics and Space Administration 
     Activities.--(1) Section 202(a) of the High-Performance 
     Computing Act of 1991 (15 U.S.C. 5522(a)) is amended to read 
     as follows:
       ``(a) General Responsibilities.--As part of the Program 
     described in title I, the National Aeronautics and Space 
     Administration shall--
       ``(1) conduct basic and applied research in high-
     performance computing, particularly in the field of 
     computational science, with emphasis on aerospace sciences, 
     earth and space sciences, and remote exploration and 
     experimentation; and
       ``(2) provide for the development of technologies needed 
     for digital libraries and electronic information.''.
       (2) Section 202(b) of the High-Performance Computing Act of 
     1991 (15 U.S.C. 5522(b)) is amended by striking 
     ``$134,000,000'' and inserting in lieu thereof 
     ``$154,000,000''; and by striking ``$151,000,000'' and 
     inserting in lieu thereof ``$181,000,000''.
       (c) Role of Department of Education.--Section 206 of the 
     High-Performance Computing Act of 1991 (15 U.S.C. 5526) is 
     amended to read as follows:

     ``SEC. 206. ROLE OF THE DEPARTMENT OF EDUCATION.

       ``(a) General Responsibilities.--As part of the Program 
     described in title I--
       ``(1) the Secretary of Education is authorized to conduct 
     basic and applied research in computational research with the 
     emphasis on the coordination of activities with libraries, 
     school facilities, and educational research groups with 
     respect to the advancement and dissemination of computer 
     science and the development, evaluation, and application of 
     software capabilities; and
       ``(2) the Department of Education, in cooperation with the 
     National Science Foundation and other agencies as 
     appropriate, shall provide for the development of advanced 
     computing and networking technology at all educational 
     levels; the development and use of technologies needed for 
     digital libraries of computerized data and information; and 
     the development and implementation of training programs for 
     teachers, students, and librarians in the use of local and 
     national computer networks.
       ``(b) Authorizations of Appropriations.--From sums 
     otherwise authorized to be appropriated to the Department of 
     Education, there are authorized to be appropriated for the 
     purposes of carrying out responsibilities under subsection 
     (a) of this section, $11,900,000 for fiscal year 1994; 
     $22,100,000 for fiscal year 1995; and $2,300,000 for fiscal 
     year 1996.''.

     SEC. 605. APPLICATIONS FOR MANUFACTURING AND INFORMATION.

       Section 204 of the High-Performance Computing Act of 1991 
     (15 U.S.C. 5524) is amended--
       (1) in subsection (a)(1), by striking ``and'' at the end of 
     a subparagraph (B), and by inserting after subparagraph (C) 
     the following new subparagraph:
       ``(D) develop, refine, test, and transfer, in coordination 
     with other agencies when appropriate, advanced computer-
     integrated, electronically-networked manufacturing 
     technologies and associated applications; and'';
       (2) in subsection (a), by striking the period at the end of 
     paragraph (2) and inserting in lieu thereof ''; and''; and by 
     adding at the end the following new paragraph:
       ``(3) the Secretary of Commerce and, as appropriate, other 
     Federal officials shall, in consultation with the 
     Superintendent of Documents, identify and support projects to 
     develop and apply high-performance computing and high-speed 
     networking technologies to provide improved public access to 
     information generated by Federal, State, and local 
     governments, including environmental monitoring 
     information.''; and
       (3) in subsection (d)--
       (A) in paragraph (1), by inserting ``(other than Advanced 
     Manufacturing Program activities)'' after ``Program'' and by 
     striking ``and'' at the end of the paragraph;
       (B) by striking the period at the end of paragraph
       (2) and inserting in lieu thereof ``; and;'' and
       (C) by adding at the end the following new paragraph:
       ``(3) to the Secretary of Commerce to carry out Program 
     activities under subsection (a)(3), $30,000,000 for fiscal 
     year 1994 and $50,000,000 for fiscal year 1995.''.

     SEC. 606. APPLICATIONS IN ENERGY AND OTHER AREAS.

       Section 203 of the High-Performance Computing Act of 1991 
     (15 U.S.C. 5523) is amended by adding at the end the 
     following new subsection:
       ``(f) Applications.--(1) The Secretary of Energy shall, 
     consistent with the Program, develop, test, and apply high-
     performance computing and high-speed networking technologies 
     in areas within the Department's missions, including--
       ``(A) energy demand management and control, including 
     vehicle efficiency and utilization, energy efficiency in 
     commercial and residential buildings, and industry energy use 
     and practices;
       ``(B) environmental monitoring, modeling, and remediation;
       ``(C) manufacturing;
       ``(D) materials;
       ``(E) the generation of electricity and the production and 
     consumption of oil, natural gas, and coal; and
       ``(F) other areas in which the Department's computing 
     expertise may assist industry and others, including 
     applications in health care, education and training, 
     financial services, and law enforcement.
       ``(2) The Secretary of Energy shall provide for cooperative 
     projects involving the Department of Energy and one or more 
     Department of Energy laboratories and appropriate non-Federal 
     entities in carrying out this subsection.
       ``(3) In carrying out projects under paragraph (2), the 
     Secretary of Energy shall, where appropriate, seek to address 
     the technical and other considerations critical to further 
     development of the technologies and applications useful for a 
     national information infrastructure.
       ``(4) There is authorized to be appropriated to the 
     Secretary of Energy for purposes of this subsection, 
     $50,000,000 for fiscal year 1994, $100,000,000 for fiscal 
     year 1995, and $150,000,000 for fiscal year 1996.''.

     SEC. 607. APPLICATIONS FOR HEALTH CARE; ACCESS TO NETWORKS.

       The High-Performance Computing Act of 1991 (15 U.S.C. 5501 
     et seq.) is amended--
       (1) by redesignating sections 207 and 208 as sections 209 
     and 210, respectively; and
       (2) by adding after section 206 the following new sections:

     ``SEC. 207. ROLE OF THE DEPARTMENT OF HEALTH AND HUMAN 
                   SERVICES.

       (a) General Responsibilities.--As part of the Program 
     described in title I, the Secretary of Health and Human 
     Services shall, through the Public Health Service, the 
     National Institutes of Health, the National Library of 
     Medicine, and the Centers for Disease Control and Prevention, 
     in cooperation with the National Science Foundation and other 
     appropriate agencies, develop and support the development of 
     interoperable technologies for applications of high-
     performance computing and high-speed networking in the health 
     care sector. In developing these technologies, emphasis shall 
     be placed on applications that can produce significant 
     savings in national health care costs. Such technologies 
     shall, when feasible, build on existing Federal programs for 
     developing information technology applications in the health 
     care sector.
       ``(b) Authorization of Appropriations.--From sums otherwise 
     authorized to be appropriated, there are authorized to be 
     appropriated to the Department of Health and Human Services 
     for the purposes of this section, $9,000,000 for fiscal year 
     1993, $30,000,000 for fiscal year 1994, and $50,000,000 for 
     fiscal year 1995.

     ``SEC. 208. ACCESS TO NETWORKS.

       ``(a) Connections Program.--The National Science 
     Foundation, the Department of Education, Department of 
     Commerce, particularly the National Telecommunications and 
     Information Administration, and other appropriate agencies 
     shall--
       ``(1) foster the creation of computer networks, including 
     but not limited to high-performance computer networks, in 
     geographical areas which will connect institutions of higher 
     education, elementary and secondary schools, libraries and 
     depositary libraries, and Federal, State, and local 
     governments to each other; and
       ``(2) provide for connection of such networks to other 
     networks.
       ``(b) Training.--The National Science Foundation, the 
     Department of Education, the Department of Commerce, 
     particularly the National Telecommunications and Information 
     Administration, and other appropriate agencies shall provide 
     for programs to train teachers, students, librarians, and 
     Federal, State, and local government personnel in the use of 
     local and national computer networks. Training programs for 
     librarians shall be designed to provide skills and training 
     materials needed by librarians to instruct the public in the 
     use of hardware and software for accessing and using local 
     and national computer networks.
       ``(c) Report.--The Director shall, within 1 year after the 
     date of enactment of the Information Technology Applications 
     Act of 1994, submit a report to Congress which shall 
     include--
       ``(1) findings of an examination of the extent to which the 
     education and library communities and State and local 
     governments have access to local and national networks;
       ``(2) a statement of the extent to which connections to 
     local and national networks exist for the education and 
     library communities and State and local governments;
       ``(3) an assessment of the factors limiting access by 
     schools, libraries, and State and local governments to local 
     and national networks and an estimate of the cost of 
     providing universal access for those institutions to those 
     networks; and
       ``(4) recommendations for collaborative programs among 
     Federal, State, and local governments and the private sector 
     to expand connectivity to local and national computer 
     networks for educational institutions, libraries, and 
     Federal, State, and local governments.
       ``(d) Authorization of Appropriations.--To carry out the 
     purposes of this section, there are authorized to be 
     appropriated--
       ``(1) to the National Science Foundation, $5,000,000 for 
     fiscal year 1994 and $12,500,000 for fiscal year 1995; and
       ``(2) to the Department of Education, $5,000,000 for fiscal 
     year 1994 and $12,500,000 for fiscal year 1995.''.

     SEC. 608. HIGH-PERFORMANCE COMPUTING AND APPLICATIONS 
                   ADVISORY COMMITTEE.

       Section 101(b) of the High-Performance Computing Act of 
     1991 (15 U.S.C. 5511(b)) is amended to read as follows:
       ``(b) High-Performance Computing And Applications Advisory 
     Committee.--The Director shall establish an advisory 
     committee on high-performance computing and applications 
     consisting of non-Federal members, including representatives 
     of the research, elementary and secondary education, higher 
     education, and library communities, consumer and public 
     interest groups, network providers, and the computer, 
     telecommunications, information and publishing industries, 
     and other groups who use networks, who are specially 
     qualified to provide the Director with advice and information 
     on high-performance computing and on applications of 
     computing and networking. The Director shall consider the 
     recommendations of the advisory committee in reviewing and 
     revising the Program. The advisory committee shall provide 
     the Director with an independent assessment of--
       ``(1) progress in implementing the Program;
       ``(2) the need to revise the Program;
       ``(3) the balance between the components of the activities 
     undertaken pursuant to this Act;
       ``(4) whether the research, development, and demonstration 
     projects undertaken pursuant to this Act are helping to 
     maintain United States leadership in computing and networking 
     technologies and in the application of those technologies;
       ``(5) whether the applications and technologies developed 
     under the Program are successfully addressing the needs of 
     targeted populations, including assessment of the number of 
     users served by those applications; and
       ``(6) other issues identified by the Director.''.

     SEC. 609. NATIONAL RESEARCH AND EDUCATION NETWORK PROGRAM.

       Section 102 of the High-Performance Computing Act of 1991 
     (15 U.S.C. 5512) is amended to read as follows:

     ``SEC. 102. NATIONAL RESEARCH AND EDUCATION NETWORK PROGRAM.

       ``(a) Establishment.--As part of the Program described in 
     section 101, the National Science Foundation, the Department 
     of Defense, the Department of Energy, the Department of 
     Commerce, the National Aeronautics and Space Administration, 
     the Department of Education, and other agencies participating 
     in the Program shall, in consultation with the Superintendent 
     of Documents, support the establishment of the National 
     Research and Education Network Program. The Network Program 
     shall consist of the following components:
       ``(1) Research and development of software and hardware for 
     high-performance computing and high-speed networks.
       ``(2) Support of experimental test bed networks for--
       ``(A) developing and demonstrating advanced networking 
     technologies resulting from the activities described in 
     paragraph (1); and
       ``(B) providing connections and associated network services 
     for purposes consistent with this Act.
       ``(3) Provision of support for researchers, educators, 
     students, libraries, and other appropriate institutions in 
     order to ensure their access and use of networks.
       ``(4) Federal networks for linking Federal agency 
     facilities and personnel to each other and to non-Federal 
     networks.
       ``(b) Program Requirements.--The Network Program shall--
       ``(1) be closely coordinated with the computer hardware, 
     computer software, telecommunications, and information 
     industries, and network users in government, industry, and 
     research and educational institutions;
       ``(2) foster and encourage competition and private sector 
     investment in networking within the telecommunications 
     industry;
       ``(3) promote and encourage research and development 
     leading to the creation of data transmission standards, 
     enabling the establishment of privately developed high-speed 
     commercial networks;
       ``(4) provide for the appropriate application of Federal 
     laws that provide network and information resources security, 
     including those that protect intellectual property rights, 
     control access to data bases, and protect national security;
       ``(5) enable interoperability of Federal and non-Federal 
     computer networks, to the extend appropriate, in a way that 
     allows autonomy for each component network;
       ``(6) promote the research and development of high-capacity 
     and high-speed computing networks, including related 
     applications; and
       ``(7) demonstrate, in cooperation with users and others in 
     the private sector, how advanced computers, high-capacity and 
     high-speed computing networks, and data bases can contribute 
     to the national information infrastructure.
       ``(c) Network Access Plan.--The Federal agencies 
     participating in activities under this section shall develop 
     a plan with specific goals for implementing the requirements 
     to subsection (a)(3), including provision for financial 
     assistance to educational institutions, public libraries, and 
     other appropriate entities. This plan shall be submitted to 
     the Congress not later than one year after the date of 
     enactment of the Information Technology Applications Act of 
     1994. Each year thereafter, the Director shall report to 
     Congress on progress in implementing subsection (a)(3).
       ``(d) Department of Defense Responsibilities.--As part of 
     the Program, the Department of Defense, through the Advanced 
     Research Projects Agency, shall support research and 
     development of advanced fiber optics technology, switches, 
     and protocols.
       ``(e) Information Services.--The Director shall assist the 
     President in coordinating the activities of appropriate 
     agencies to promote the development of information services 
     that could be provided over computer networks consistent with 
     the purposes of this Act. These services may include the 
     provision of directories of the users and services on 
     computer networks, data bases of unclassified Federal data, 
     training of users of data bases and computer networks, and 
     technology to support computer-based collaboration that 
     facilitates research and education. In carrying out this 
     section, the Director shall consult with the Superintendent 
     of Documents in order to facilitate compatibility of 
     information systems and eliminate unnecessary redundancy.
       ``(f) Use of Grant Funds.--All Federal agencies and 
     departments are authorized to allow recipients of Federal 
     research grants to use grant funds to pay for computer 
     networking expenses.
       ``(g) Use of Program Funds.--(1) Each agency in the 
     Program, when using Program funds for the procurements of 
     communications networking services for Program activities, 
     shall develop, provide access to, or use communications 
     networks through the acquisition of commercially available 
     network services or through contracting for customized 
     services when such acquisition cannot satisfy agency 
     requirements. Nothing in this section shall be construed to 
     modify or otherwise change the Federal Property and 
     Administrative Services Act of 1949.
       ``(2) In using Program funds to provide grants or 
     assistance to non-Federal entities for the support of 
     communications networking services, the head of each agency 
     in the Program shall provide funding only to non-Federal 
     entities which agree to develop, provide access to, or use 
     communications networks--
       ``(A) through the acquisition of commercially available 
     communications networking services; or
       ``(B) if no such services are satisfactorily available, 
     through contracting for customized services, with the 
     determination of satisfactory availability including 
     consideration of geographic access to and affordability of 
     service, and timeliness and technical performance standards 
     in providing services.
       In neither subparagraph (A) or (B) may the grantee use 
     Federal funds for purposes other than the purposes for which 
     they are awarded.
       ``(3) The provisions of this subsection shall apply only to 
     procurements, grants, or agreements for assistance entered 
     into by Program agencies for Program activities after the 
     date of enactment of the Information Technology Applications 
     Act of 1994.''.

     SEC. 610. SUPPORT FOR COMPUTER EDUCATION PROGRAMS.

       (a) Education Project.--The Administrator of the National 
     Aeronautics and Space Administration (hereafter in this 
     section referred to as the `Administrator') shall establish a 
     Computer Technologies for K-12 Education Project (hereafter 
     in this section referred to as the `Project') to test and 
     demonstrate educational applications of advanced computer 
     technologies, including but not limited to high-performance 
     computing technologies, in public school systems providing 
     precollege education. The Project shall award, on a 
     competitive basis, grants to plan, deploy, manage, and 
     operate advanced educational applications of computer 
     technologies in K-12 public school systems in the United 
     States in response to proposals requested by the 
     Administrator. The Administrator shall ensure that non-
     Federal funds committed to support such proposals shall 
     amount to not less than 30 percent of the Federal grant from 
     the Project.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the National Aeronautics and Space 
     Administration $8,000,000 for each for the fiscal years 1994 
     and 1995, to carry out the provisions of paragraph (1). No 
     funds shall be awarded under the Project other than through 
     the competitive process established by the Administrator 
     pursuant to this section.

     SEC. 611. SUPPORT FOR STATE-BASED DIGITAL LIBRARIES.

       (a) Program To Support Digital Libraries.--The National 
     Science Foundation, in consultation with the Department of 
     Education, the Department of Commerce, the Advanced Research 
     Projects Agency, the Library of Congress, the Superintendent 
     of Documents, and other appropriate agencies, is authorized 
     to initiate a competitive, merit-based program to support the 
     efforts of States and, as appropriate, libraries to develop 
     electronic libraries. In carrying out this section, the 
     National Science Foundation shall consult with the 
     Superintendent of Documents in order to facilitate 
     compatibility for Federal information systems and eliminate 
     unnecessary redundancy. These libraries shall provide 
     delivery of and access to a variety of databases, computer 
     programs, and interactive multimedia presentations, 
     including educational materials, research information, 
     statistics and reports developed by Federal, State, and 
     local governments, and other information and informational 
     services which can be carried over computer networks.
       (b) Authorization of Appropriations.--To carry out the 
     provisions of this section, there are authorized to the 
     Director of the National Science Foundation $10,000,000 for 
     fiscal year 1994, and $25,000,000 for fiscal year 1995.
       (c) Copyright Law.--Nothing in this section shall be 
     construed to modify or otherwise change any provision of 
     title 17, United States Code.

     SEC. 612. SUPPORT FOR COMPUTING ACTIVITIES AT TRIBAL 
                   COLLEGES.

       The Director of the National Science Foundation shall 
     design and implement a pilot program to provide financial 
     assistance, through competitive selection processes, to 
     States in which are located two or more tribally-controlled 
     community colleges. The objective of the pilot program shall 
     be to institute interactive telecommunications systems among 
     such tribally controlled community colleges in such States, 
     so as to assist the tribal community in education, job 
     training, and other appropriate activities.

     SEC. 613. DEPARTMENT OF EDUCATION SUPPORT FOR COMPUTER 
                   EDUCATION PROGRAMS.

       (a) Education Project.--In addition to the general 
     responsibilities set forth in section 206 of the High-
     Performance Computing Act of 1991 (15 U.S.C. 5526), the 
     Department of Education, in cooperation as appropriate with 
     other Federal agencies, shall establish a project to test and 
     demonstrate educational applications of advanced computer 
     technologies, including but not limited to high-performance 
     computing and networking technologies, in school systems 
     providing precollege education. This project shall award, on 
     a competitive basis, grants to plan, deploy, manage, and 
     operate advanced educational applications of computer 
     technologies in response to proposals requested by the 
     Secretary of Education. The Secretary of Education shall 
     ensure that non-Federal funds committed to such proposals 
     shall amount to not less than 30 percent of the Federal 
     grant.
       (b) Authorization of Appropriations.--From sums otherwise 
     authorized to be appropriated to the Department of Education, 
     there are authorized to be appropriated to carry out the 
     provisions of this section, $8,000,000 for each of the fiscal 
     years 1994 and 1995. No funds shall be awarded under the 
     provisions of subsection (a) other than through the 
     competitive process established by the Secretary of Education 
     pursuant to this section.

               TITLE VII--FASTENER QUALITY ACT AMENDMENTS

     SEC. 701. FASTENER QUALITY ACT AMENDMENTS.

       (a) Technical Amendments.--(1) Section 3 of the Fastener 
     Quality Act (15 U.S.C. 5402) is amended--
       (A) in paragraph (8), by striking ``Standard'' and 
     inserting in lieu thereof ``Standards''; and
       (B) in paragraph (14), by striking ``which defines or 
     describes'' and all that follows through ``of any fastener''.
       (2) Section 5(b)(1) of the Fastener Quality Act (15 U.S.C. 
     5404(B)(1)) is amended by striking ``section 6; unless'' and 
     inserting in lieu thereof ``section 6, unless''.
       (3) Section 7(c)(2) of the Fastener Quality Act (15 U.S.C. 
     5406(c)(2)) is amended by inserting ``to the same'' before 
     ``extent''.
       (b) Clarifying Amendments.--(1) Section 5(a)(1)(B) of the 
     Fastener Quality Act (15 U.S.C. 5404(a)(1)(B)) is amended by 
     striking ``subsections (b) and (c)'' and inserting in lieu 
     thereof ``subsections (b), (c), and (d)''.
       (2) Section 5(a)(2)(A)(i) of the Fastener Quality Act (15 
     U.S.C. 5404(a)(2)(A)(i)) is amended by striking ``subsections 
     (b) and (c)'' and inserting in lieu thereof ``subsections 
     (b), (c), and (d)''.
       (3) Section 5(c)(4) of the Fastener Quality Act (15 U.S.C. 
     5404(c)(4)) is amended by inserting ``except as provided in 
     subsection (d),'' before ``state''.
       (4) Section 5 of the Fastener Quality Act (15 U.S.C. 5404) 
     is amended by adding at the end the following new subsection:
       ``(d) Aternative Procedure for Chemical Characteristics.--
     Notwithstanding the requirements of subsections (b) and (c), 
     a manufacturer shall be deemed to have demonstrated, for 
     purposes of subsection (a)(1), that the chemical 
     characteristics of a lot conform to the standards and 
     specifications to which the manufacturer represents such lot 
     has been manufactured if the following requirements are met:
       ``(1) The coil or heat number of metal from which such lot 
     was fabricated has been inspected and tested with respect to 
     its chemical charactistics by a laboratory accredited in 
     accordance with the procedures and conditions specified by 
     the Secretary under section 6.
       ``(2) Such laboratory has provided to the manufacturer, 
     either directly or through the metal manufacturer, a written 
     inspection and testing report, which shall be in a form 
     prescribed by the Secretary by regulation, listing the 
     chemical characteristics of such coil or heat number.
       ``(3) The report described in paragraph (2) indicates that 
     the chemical characteristics of such coil or heat number 
     conform to those required by the standards and specifications 
     to which the manufacturer represents such lot has been 
     manufactured.
       ``(4) The manufacturer demonstrates that such lot has been 
     fabricated from the coil or heat number of metal to which the 
     report described in paragraphs (2) and (3) relates. In 
     prescribing the form of report required by subsection (c), 
     the Secretary shall provide for an alternative to the 
     statement required by subsection (c)(4), insofar as such 
     statement pertains to chemical characteristics, for cases in 
     which a manufacturer elects to use the procedure permitted by 
     this subsection.''.
       (c) Sale of Fasteners Subsequent to Manufacture.--Section 7 
     of the Fastener Quality Act (15 U.S.C. 5406) is amended--
       (1) in subsection (e)(1)--
       (A) by striking ``or any person who purchases any quantity 
     of fasteners for resale at wholesale'' and inserting in lieu 
     thereof ``, importer, or private label distributor''; and
       (B) by striking ``or such person'' and inserting in lieu 
     thereof ``, importer, or private label distributor'';
       (2) by adding at the end of subsection (e) the following 
     new paragraph:
       ``(3) Notwithstanding paragraph (1), fasteners may be sold 
     to an end user in commingled lots if--
       ``(A) any packaging of such fastener includes a conspicuous 
     disclaimer message indicating that the fasteners are 
     manufactured and tested in compliance with this Act but have 
     been commingled with like items from different lots; and
       ``(B) the person selling such fasteners has a written 
     statement from the end user purchasing such fasteners 
     granting permission to the seller to provide commingled lots. 
     A written statement described in subparagraph (B) shall be 
     kept on file for at least 10 years for any later review or 
     audit.''; and
       (3) by amending subsection (f) to read as follows:
       ``(f) Subsequent Purchaser.--It shall be unlawful for any 
     person to sell fasteners, of any quantity, to any end user 
     who requests lot traceability, unless the container of 
     fasteners sold is conspicuously marked with the number of the 
     lot from which such fasteners were taken.''.

  Mr. HOLLINGS. Mr. President, I am pleased that the Senate today is 
considering a substitute amendment which I am offering to S. 4, the 
National Competitiveness Act of 1993. This important bill has a single 
purpose: To help industry to promote American economic growth and jobs. 
The bill accomplishes this goal by strengthening the technology and 
manufacturing assistance programs of the Department of Commerce [DOC], 
by furthering manufacturing research and education at the National 
Science Foundation [NSF], and by authorizing research in new 
applications of high-performance computing. I introduced S. 4 last year 
with the support of both the distinguished majority leader and several 
of our colleagues, and last May the Commerce Committee approved it 
without objection.


                               background

  There are many important reasons to pass this bill. S. 4 is important 
because technology is important. Technology is the engine of economic 
growth. In an increasingly competitive world economy, American industry 
appropriately views technology as a strategic advantage. Professors 
Roger Noll of Stanford and Linda Cohen of the University of California 
recently summarized, in a 1991 book, the evidence on this point when 
they wrote that the consensus among economists is that improvement in 
knowledge, including technological change, is:

     probably the most important source of growth in per capita 
     national income. Moreover, societies with high wages can 
     continue to experience high rates of growth only if they are 
     continuously on the edge of the technical frontier. If know-
     how is roughly the same everywhere, rapid growth in a high-
     wage society is unlikely to be sustained in competition with 
     a low-wage society. As an empirical matter, the most 
     economically advanced nations tend to be the principal 
     producers and exporters of the most technically sophisticated 
     products.

  Since technology is vital to economic growth, and since the Federal 
Government spends $70 billion a year on research and development, it 
stands to reason that the Government should make its research and 
development programs as useful as possible to industry.
  S. 4 reflects this awareness by reauthorizing and strengthening 
existing programs which fall within a bipartisan technology policy 
tradition that dates back to at least 1980. The Reagan administration 
proposed the Federal Technology Transfer Act, and the Bush 
administration requested funds for the DOC programs reauthorized in S. 
4. President Bush's administration summed up the consensus well in its 
September 1990 statement on U.S. technology policy, when it said that 
the Federal Government has a responsibility to participate:

     with the private sector in precompetitive research on 
     generic, enabling technologies that have the potential to 
     contribute to a broad range of government and commercial 
     applications. In many cases these technologies have evolved 
     from government-funded basic research, but technical 
     uncertainties are not sufficiently reduced to permit 
     assessment of full commercial potential.

  Furthermore, early last year President Clinton announced a 
major technology policy initiative, and his commitment to furthering 
this policy is reflected in his recent fiscal year 1995 budget request.

  This bipartisan policy calls for research cooperation between 
industry on the one hand and universities, Federal agencies, and 
Government laboratories on the other hand, and has been promoted by 
many specific laws and programs in addition to DOC technology programs, 
which have received bipartisan support. These include the Bayh-Dole Act 
of 1980, which encourages university-industry cooperation; the Federal 
Technology Transfer Act of 1986, which facilitates cooperation between 
Federal laboratories and industry; continued support for aeronautical 
research at the National Aeronautics and Space Administration [NASA]; 
NSF-sponsored engineering research centers; and dual-use Department of 
Defense initiatives such as Sematech and the technology reinvestment 
project. These laws and programs have certain common features: Federal 
research programs that are more useful to companies; competitive, peer-
reviewed selection processes for technology grants; and a focus on 
precompetitive research on high-risk but valuable technologies, coupled 
with a strict prohibition against using Federal money to help companies 
to develop or make commercial products.
  The bipartisan interest in these programs also is reflected in 
general congressional action over the years to aid industry. For 200 
years, ever since Treasury Secretary Alexander Hamilton wrote his 
famous ``Report on Manufactures,'' bipartisan majorities of Congress 
have passed bills to promote industry. Earlier Congresses have approved 
agricultural research and extension; the research and development tax 
credit; Export-Import Bank loans, aeronautical research; programs at 
the National Institutes of Health; funding for Sematech; university 
research; and Federal laboratory technology transfer, to name a few. 
Congress has long supported industry, realizing the importance of these 
programs in helping industry to increase profits and create jobs. S. 4 
continues in that bipartisan tradition. It is a bill to promote 
industrial development and economic growth, and its bipartisan support 
indicates the continuing interest in these programs. In the last 
Congress, S. 1330--a precursor to S. 4--passed the Senate by unanimous 
consent, and last year the Senate Commerce Committee reported S. 4 
without a dissenting vote.

  S. 4 promotes these bipartisan proposals without adding to the 
deficit. The administration is proposing an fiscal year 1995 budget for 
S. 4's technology programs within the tough new budget cap that freezes 
discretionary spending. Funds are being reallocated within the research 
and development budget to make that budget more useful in an era with 
the cold war is over and economic growth is now the Nation's highest 
priority.
  Some might argue that S. 4 is industrial policy. Critics of Federal 
technology programs often imply that these programs provide, or will 
provide, massive subsidies to prop up individual companies and help 
them to make products. This argument is nonsense. All of these programs 
prohibit the use of Federal money to develop or make commercial 
products--we are not picking winners and losers, or anything of that 
sort.

  The need for S. 4 is clear. According to a 1990 report by the 
Department of Commerce during the Bush administration, America is 
losing, or losing badly, relative to Japan and Europe in many of the 
key new emerging technologies. By the year 2000, world markets for 
products based on these technologies could total $1 trillion annually. 
The United States also lags in the deployment of new manufacturing 
technologies. The United States has 350,000 small manufacturing firms 
with 500 or fewer employees; yet the Nation ranks far below other 
industrialized nations in the adoption of advanced machine tools and 
other technologies.
  Up to now, the U.S. Government's research and development budget has 
reflected the priorities of the cold war. According to official NSF 
statistics, as recently as 1992 the Federal Government spent 59 percent 
of its research and development on defense and only 0.3 percent for the 
direct support of industrial development. Our major economic 
competitors, however, have chosen to emphasize the support of the new 
basic industrial technology. Their percentages of government research 
and development money used to support industry are impressive: in 
Germany, 13.3 percent; in France, 12.6 percent; in Italy, 14.3 percent. 
Other nations also provide major assistance to help their small 
manufacturers--Japan funds 170 assistance centers, for example. Today, 
with the cold war over and economic growth a higher priority than ever, 
it is appropriate--indeed imperative--that we use some of the Federal 
Government's $70 billion annual research budget to support the 
development of the new basic technologies and manufacturing practices 
that are absolutely central to national prosperity.

  S. 4's programs also are of the highest quality. I am proud of the 
programs that S. 4 reauthorizes and strengthens. The DOC programs are 
industry-led, cost-shared, and peer-reviewed. There is no pork, and 
these activities enjoy a stellar reputation. Moreover, these programs 
have the right focus. They support industry's efforts to perfect 
important new high-risk technologies and to improve basic 
manufacturing. However, they never subsidize the development or 
production of commercial products, which is appropriately left to the 
private sector.
  In a world in which wealth and jobs go to those countries that can 
commercialize new inventions most quickly, and improve manufacturing 
most rapidly, these programs are major investments in our Nation's 
economic future. Given their clear value and high quality, they have 
broad support from major industry coalitions and engineering groups, 
such as the National Association of Manufacturers, American Electronics 
Association, and Computer Systems Policy Project, to name a few. The 
support for S. 4 shows its importance to the Nation's future.


                            major provisions

  At the heart of S. 4 are, first, a clear restatement of DOC's mission 
in support of U.S. manufacturing and, second, reauthorizations for the 
three main activities of DOC's National Institute of Standards and 
Technology [NIST]. These three activities are the Advanced Technology 
Program [ATP], which aids industry-led efforts to speed the development 
of new technologies; the manufacturing extension partnership [MEP], in 
which NIST supports State efforts to help small and medium-sized 
manufacturers to improve performance, save jobs, and boost profits; and 
the research and technical service programs at NIST's laboratories, 
which since 1901 have given U.S. industry the precise measurement and 
process control technologies necessary to make products quickly, 
precisely, and cost effectively. S. 4 also authorizes expanded 
activities at the National Science Foundation [NSF] in support of 
manufacturing education and research. All of the grant programs which I 
have mentioned--the ATP, the MEP, and NSF's support for manufacturing--
are competitive, merit-reviewed programs. They enjoy a strong 
reputation for quality, careful evaluation, and fairness.

  In addition, title VI of S. 4 authorizes a computer applications 
research program, originally proposed by Vice President Gore when he 
chaired the Commerce Committee's Science Subcommittee. This initiative, 
which also emphasizes competitive grant procedures, will support 
innovative demonstration projects run by computer users and vendors to 
develop and test new applications of high-performance computing. An 
emphasis is placed on research that contributes to the Nation in areas 
of particular public concern, including education, health 
care, manufacturing, and libraries. This initiative will help to ensure 
that the fundamental computing research that the Government is already 
supporting will be applied effectively in these key areas, helping to 
deliver better services to the public as well as boost the 
competitiveness of the U.S. computer industry.


                        the substitute amendment

  The text now before the Senate is a substitute amendment. It follows 
the reported version of S. 4 closely, and incorporates refinements that 
resulted from our conversations with interested Members and the 
administration. There are several important features of the substitute.
  First, the essence of the original NIST and NSF provisions has been 
kept. The substitute reauthorizes NIST programs, expands the ATP to the 
point where it can make significant contributions to industry's 
technology efforts, makes needed technical amendments to NIST programs, 
and expands NIST's existing, and proven, manufacturing extension 
programs. S. 4 as amended still will enable NIST to expand its support 
for U.S. technology and manufacturing.
  For example, NIST currently supports seven State-sponsored 
manufacturing technology centers [MTC's] around the country. Roughly 
analogous to agricultural extensions, these centers provide valuable 
advice to interested small manufacturers. Early evaluations show that 
the assistance provided by these centers has helped small manufacturers 
to improve technology and work practices, boost sales and exports, and 
increase jobs. Japan operates over 170 such centers, with apparent 
great success. The President has proposed to increase the number of 
MTC's and create a new generation of smaller manufacturing outreach 
centers [MOC's], which will be based at junior colleges and other local 
groups around the country. S. 4 as amended authorizes that expansion. 
When properly funded, the legislation will create a national network of 
State and local-led centers that can assist all interested small 
manufacturers. That network will be an important step in trying to save 
small American firms--and small-firm jobs--that are now facing intense 
foreign competition.

  The NSF portions of the substitute are the same as the reported 
version, with the addition of a provision allowing for one new activity 
to support student internships at small manufacturing companies. The 
substitute, like the reported bill, contains a pilot program to support 
venture capital firms which help to support new technology ventures. 
This provision has been modified, however, as the result of discussions 
between DOC and the Small Business Administration and among Senators 
Rockefeller, Bumpers, and Pressler.
  The revised S. 4 computer title contains the same basic provisions as 
before, and also includes clarifying language on one key provision--the 
section ensuring that Federal support for computer networks does not 
create unfair competition to commerical phone companies, while still 
providing that Federal agencies remain free to operate their own 
internal mission networks.


                               conclusion

  Mr. President, I want to thank the many individuals and groups which 
helped us to craft this legislation. I thank in particular our ranking 
member, Senator Danforth, for his leadership on his side of the aisle; 
Senator Mitchell, our principal cosponsor, and Senator Rockefeller, our 
Science Subcommittee chairman. In the House, Chairman George Brown and 
his colleagues on the Science Committee have worked closely with us on 
this bill for over 2 years. In addition, John Dingell. We have had the 
support and apparent guidance of our distinguished Vice President and 
Secretary of Commerce Ron Brown with respect to all Commerce matters. 
We worked closely with him and with the administration on information 
and communication. All of these Members and their staffs have 
contributed greatly to this legislation and deserve much credit.
  From the beginning, S. 4 was written not only to support industry but 
also in close cooperation with industry and worker organizations. In 
this regard, special thanks goes to several groups. The National 
Coalition for Advanced Manufacturing, the National Association of 
Manufacturers, the Modernization Forum, the Work and Technology 
Institute, the American Society for Training and Development, the 
Engineering Societies, and, very importantly, the Advanced Technology 
Coalition, let by the American Electronics Association, Honeywell 
Corp., and others, have contributed greatly to this product.
  In preparing the computer title, the Computer Systems Policy Project, 
the American Electronics Association, and a range of educational groups 
and telecommunications companies, as well as the Vice President's 
office and the Office of Science and Technology Policy [OSTP], worked 
with us to perfect legislative language. The Secretary of Commerce and 
DOC technology officials, as well as officials from OSTP, the National 
Economic Council, and the Office of Management and Budget have worked 
hard to make this a sound bill and to ensure that the programs 
authorized in the legislation will be of the highest quality.

  For over 40 years after World War II, the Federal Government's large 
budget focused on the needs of the cold war and a few other specific 
Government missions. Even though our trading partners focused most of 
their research and development funding on industrial development, we 
assumed the burden of world leadership in confronting communism and 
devoted very little of our research and development resources directly 
to helping our civilian manufacturing industries and workers to succeed 
in an increasingly competitive world economy. As recently as only a few 
years ago, less than 1 percent of the U.S. Government research and 
development budget went to support the technology efforts of general 
civilian industry. Our economic competitors have pursued very different 
priorities.
  Now the United States faces a new era--one of diminished military 
threat and greatly increased economic competition. The economic 
challenge has become relentless. Despite leading the world in science 
and new inventions, our country faces major trade deficits, factories 
all too often moved overseas, workers face wrenching changes, and we 
continue to see other countries commercialize American inventions. If 
the United States is to obtain jobs and profits from the industries of 
the future, and if we are to help small as well as large manufacturers 
across the land to restore competitiveness, we must act now.

  The President and Members on both sides of the aisle are committed to 
investing in long-term economic growth. As one vital step in this 
effort, we must strengthen Federal civilian technology and 
manufacturing programs and, even more importantly, we must shift budget 
resources away from old research and development priorities to the 
urgent needs of today. Technology programs, properly designed and 
funded, can strengthen the U.S. economy, and S. 4 is a major building 
block in the new American national technology policy. This new 
technology policy--combined with stronger trade policies, improved 
training and education, and long-term deficit reduction--can help to 
make the difference in determining whether this Nation and our people 
prosper or decline in this harsh world economy.
  I thank my colleagues for their contributions and support, and urge 
the Senate to pass S. 4 as amended.
  The PRESIDING OFFICER (Mrs. Murray). The Senator from Missouri.
  Mr. DANFORTH. Madam President, my hope is that for the next day or so 
while S. 4 is considered in this Chamber we as a Senate will have the 
opportunity to address fundamental questions about the relationship 
between the Federal Government and the private sector. I really believe 
that Senator Hollings, with his very strong leadership, has brought 
before the Senate a very important question.
  I must say to my chairman that while I was not terribly enthusiastic 
about S. 4 as it winded its way through the Commerce Committee, I 
viewed it at the time as somewhat more innocuous than I view it now. I 
think now particularly, given the status of the GATT agreement that has 
been negotiated by our country and other countries of the world, the 
issue that has been raised in S. 4 is one that is of really tremendous 
significance to our country. I believe it is one that should be debated 
on the floor of the Senate.
  So my hope is that for the next couple of days--I do not think this 
is going to be on the floor of the Senate for a very long time, but my 
hope is that for the next couple of days Senators will focus on the 
question that is raised by this legislation. The question really is 
summed up in the words ``industrial policy.''
  I hope Members of the Senate will ask themselves what should be the 
appropriate relationship between the Federal Government and the private 
sector of America. To what degree should the Federal Government be 
weighing in with particular industries, to what extent should the 
Government of the United States be subsidizing particular industries, 
particularly high-technology industries, deciding those industries that 
have promise and putting Federal resources behind those industries.
  Now, all of us believe in science. All of us are very proud of the 
technological abilities of Americans. All of us believe that the future 
of our country and the future of our economy is related to the ability 
of Americans to produce new kinds of products and to bring those 
products to the market.
  So the question that will be before us for the next day or so has 
nothing to do with whether we believe in science. We do believe in 
science. It has nothing to do with whether we believe in advanced 
technology. We do believe in advanced technology. The only issue is 
what is the Federal Government supposed to do about it? How does the 
Government relate to the private sector? Does the Government weigh in? 
Does the Government attempt to help out, to identify those industries 
that are promising and to help those industries, or instead is the 
better approach of the Federal Government, frankly, to get out of the 
way?
  We have addressed this question in the Commerce Committee in 
connection with telecommunications; the so-called infrastructure issue 
in telecommunications has been before us for a number of years. I think 
it was back in 1991 that then Senator, now Vice President, Gore 
introduced a bill, and the bill was the telecommunications 
infrastructure bill. The basic approach of that bill was that the 
Federal Government should spend money in creating a telecommunications 
infrastructure for America.
  That idea has changed, and it has changed very dramatically. Right 
now, the Commerce Committee has before it, under the leadership of our 
chairman, a bill which does not have the Government in the business of 
developing infrastructure but, rather, the Government is getting out of 
the way. The Government under our legislation would deregulate 
telecommunications. It would allow the telephone companies to get into 
the cable business and the cable companies to get into the telephone 
business. Government would say we are not going to regulate so heavily. 
We are going to get out of the way, and we are going to let the private 
sector do its job.
  It is a major shift in philosophy between then Senator Gore's 
infrastructure idea of 3 years ago and the infrastructure concept that 
is now before the Commerce Committee. It is a difference between a very 
involved and directive Federal Government and a Federal Government that 
allows the private sector to function. Now we have before us 
legislation which creates new expansions of the Federal Government's 
relationship with the private sector, significant increases in funding 
so that the Federal Government can pick favored industries and the 
Federal Government can subsidize those industries, particularly with 
respect to the doing of research.

  I believe that before we do this, we should debate it so that this 
greatest of all deliberative bodies can reach a decision on the basis 
of due deliberation. Do we really believe in Government subsidies for 
research? Do we really believe that the Government subsidization of 
research is the way to move the country forward, the private sector 
forward toward the future? Or do we believe that the Government and its 
subsidies is not the best approach?
  All of us have supported governmental subsidies for research. The 
Federal Government does research. The Federal Government does research 
through grants to universities. The Federal Government does research 
through the National Institutes of Health and through the Defense 
Department. The Federal Government buys research into weapons systems 
and supports general research on matters of health.
  But the kind of research that is advanced by this legislation is a 
different sword. This is targeted research. It is research designed to 
affect specific industries and to bring about results within those 
specific industries. And, therefore, there is a fundamental difference 
between basic research or defense research designed for a purpose and 
the sort of industrial policy, product-oriented research, sector-
oriented research that is so much a part of this legislation.
  I would like to say to the Senate that my own interest in this issue, 
which as I indicated earlier was mild until very recently, accelerated 
very dramatically as I focused on what the administration brought about 
in the negotiation of the GATT agreement; what the administration 
brought about in negotiating the GATT agreement last winter, after the 
Congress adjourned after the last session of Congress.
  Without advance knowledge, I think, on the part of any of us, the 
administration altered a longstanding position of past administrations 
with respect to permissible subsidies that governments can put in place 
around the world for favored industries.
  And the administration, at its insistence in the trade negotiations, 
the GATT negotiations, brought about the so-called ``green lighting'' 
of research and development subsidies. Heretofore the kinds of specific 
product-oriented subsidies that we are talking about were subject to 
countervailing duty. Under the subsidies code as it has existed and as 
it currently exists, if a country subsidizes research and subsidizes 
development, those subsidies are subject to countervailing duty. 
Injured countries, countries whose products have been injured and whose 
economy has been injured by the subsidies granted by other governments, 
can impose countervailing duties in order to offset or to penalize the 
subsidy. That practice, that subsidies code, is being dramatically 
altered as a result of the GATT agreement, and it is being dramatically 
altered under the leadership and at the insistence of the Clinton 
administration.
  So if the GATT agreement is agreed to, if it actually comes into 
being, henceforth research subsidies up to 75 percent of their cost and 
development subsidies up to 50 percent of their cost can be subsidized 
by governments without any countervailing duties being possible.
  This is a major change and it is a change that was insisted upon by 
the Clinton administration. And the rationale for the change is set 
forth in a memorandum dated November 27, 1993.
  I ask unanimous consent that the memorandum be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                     GATT and Development Subsidies

       The following addresses the question of reducing GATT 
     disciplines on development subsidies in light of the known 
     positions of U.S. industry and the possible economic effects 
     of this action. Annex I briefly describes the current 
     treatment of development subsidies under the 1979 GATT 
     Subsidies Code, the U.S. countervailing duty (CVD) law, and 
     the Dunkel Draft Subsidies Code.


                Industry Perspectives on `'Development''

       Going into the Uruguay Round, only the aerospace and 
     consumer electronics industries provided specific advice on 
     how government subsidies to research and development should 
     be treated. The table below compares the position of those 
     industries with the results of the draft Uruguay Round 
     subsidies text.

------------------------------------------------------------------------
                            Industry position           Draft text      
------------------------------------------------------------------------
Basic research.........  100 percent green......  50 percent green.     
Applied Research.......  100 percent yellow.....  25 percent green.     
Development............  100 percent red........  100 percent yellow.   
------------------------------------------------------------------------

       Since the draft text was issued, many advisory groups have 
     reiterated or refined their advice on R&D. The ACTPN 
     Industrial Subsidy Task Force issued guidance last December 
     which recommended collapsing basic and applied research under 
     a new, single ``research'' definition, for which 100 percent 
     of government assistance would be made non-actionable. 
     However, the ACTPN also recommended that the term 
     ``development'' be defined--so as to make clear what activity 
     was not exempted from subsidy disciplines--and that the 
     language make clear that the creation of prototypes was to be 
     considered a development activity.
       Over the past year, U.S. Trade and technology officials 
     also consulted with a number of industries which participate 
     in technology partnerships with federal agencies. Some of 
     those partnership activities probably involve 
     ``development,'' such as the advanced battery consortium with 
     U.S. automakers. although these groups expressed concern 
     about the impact of subsidy rules on their partnership 
     activities, their concern extended as much to the manner in 
     which research was greenlighted as to the manner in which 
     development was not. Moreover, the aircraft industry's 
     preoccupation with the treatment of development arises out of 
     concrete experience with the Airbus consortium, whereas the 
     anxiety of other industries about coverage of R&D probably is 
     more reflective of a ``fear of the unknown'' than a studied 
     assessment of how their international competitive position 
     would be affected if assistance for development were exempted 
     from subsidies disciplines.


               how could one ``greenlight'' development?

       The easiest way to ``greenlight'' development is to 
     indicate that 100 percent of government assistance for 
     research and development is non-actionable. The only 
     logistical problems posed by this option are how to 
     distinguish R&D from other production activities and discern 
     which operating costs are related or allocable to R&D. 
     However, this approach would overlook the fact that 
     assistance for product development is apt to be far more 
     distortive of the conditions of competition than most 
     government subsidies. If the United States is considering 
     such a step, it should first rethink its overall policy 
     objective of disciplining government subsidies.
       Short of a total greenlight, one must weigh the benefits 
     and risks of moving both horizontally (i.e., broadening the 
     non-actionable definitions) and vertically (i.e., raising the 
     permitted level for non-actionable assistance). First, we 
     could consider including a reference to prototype creation in 
     the applied research definition. This would have the 
     advantage of giving the EC part of what it wants (the EC's 
     own R&D rules are expressed in this way) without establishing 
     a formal precedent that development is non-actionable. On the 
     down side, it would make prototype creation 100 percent non-
     actionable (based on last week's decision to raise the levels 
     for two research categories to 100 percent).
       Alternatively, we could establish a definition for 
     development and make government assistance for such activity 
     non-actionable up to a negotiated level. This would allow us 
     to discourage government development subsidies beyond a given 
     level, but it would reintroduce many of the problems we have 
     just decided to avoid by raising the research ceilings to 100 
     percent. That is, the notification and administration of 
     subsidy programs is made much more difficult as soon as one 
     limits to a specific percentage the amount and kinds of costs 
     that may safely be subsidized.


                            economic affects

       Analysis of the economic effects of removing subsidies 
     disciplines on development assistance depends on two things:
       Whether subsidies (i.e. targeted government support) are or 
     are not effective and efficient methods of industrial 
     development which help to confer a real competitive 
     advantage.
       The relative abilities and willingness of the U.S. and 
     foreign governments to provide subsidies in a thoughtful and 
     effective manner.
       The first item is assumed to be true; otherwise we would 
     not wish to use subsidies ourselves, or be concerned about 
     their use by others.
       If the green category of the Dunkel draft Subsidies Code is 
     expanded to include development subsidies, the USC will 
     ostensibly choose between matching or exceeding foreign 
     subsidies or accepting the reduced competitiveness of U.S. 
     manufacturers. If the first choice is made, budget resources 
     will have to be made available or the choice is illusory, and 
     the reduction of subsidies discipline would create a net loss 
     to the U.S. economy, as others could subsidize and we would 
     not.
       The overall effect on the economy can be positive only as 
     long as we remain willing and able to exceed foreign 
     subsidies, and to be selective in the particular areas 
     subsidized. If we simply match others' subsidies the economic 
     effect will be neutral, unless the lag time involved in 
     following the lead of others actually places us in a slightly 
     disadvantageous position. In any case, we should not allow 
     foreigners to influence, by their choices, which sectors we 
     subsidize. We will need to get out in front so that our 
     choices are directed by our priorities, and not through 
     reaction to particular U.S. industries seeking subsidies 
     equivalent to those of their foreign competitors. Thus, a 
     decision to reduce subsidies disciplines requires a 
     commitment to be subsidy leaders, both in choosing 
     beneficiary sectors and amounts given, if we are to ensure 
     positive economic effects for the United States. Because the 
     Code will be in effect for many years, the commitment must 
     also be long-term.
       Choosing to decrease disciplines but not match foreign 
     subsidies is not a real choice at all. If we could not or 
     would not match foreign subsidies, there would be no reason 
     to give ``green-light'' status to development subsidies, 
     unless we were certain that subsidies do not work, and that, 
     in any event, their use by others could not harm us. The 
     latter conclusion would be inconsistent with our position on 
     agricultural subsidies and countervailing duties. If we 
     believe that subsidies do work, but we do not have the 
     resources to play, or do not wish to engage in a subsidies 
     war, we would maintain GATT disciplines on subsidies.

 Annex I--Domestic and International Treatmemt of Development Subsidies


                               1979 code

       The 1979 Code grants no special status to development 
     subsidies. While it prohibits export subsidies by developed 
     countries (except for agriculture), all other subsidies are 
     ``actionable''. That means that an aggrieved party may refer 
     a subsidy to a GATT panel to determine if the subsidy is 
     causing adverse effects to its interests. However, since the 
     Code does not contain definitions of ``subsidy'' or ``adverse 
     effects'' and provides no guidance as to what should be done 
     if both are found, it in fact provides little meaningful 
     discipline on development or any other types of subsidies, 
     other than those granted for export. It is not surprising 
     that there have been no successful challenges of development 
     or other actionable subsidies on industrial products. The 
     process has been used only on prohibited subsidies, and 
     there, the ability of losers to block adoption of panel 
     reports makes even a victory problematic.


                                u.s. law

       The U.S. countervailing duty law provides that if 
     subsidized imports into the United States cause injury, a 
     duty equal to the subsidy shall be imposed. This law has been 
     used effectively many times by domestic industry and is 
     extremely useful at offsetting subsidies on imports. 
     Development subsidies have not been frequent targets however. 
     Most cases have related to general assistance, such as 
     grants, low interest loans, equity infusions, and special tax 
     treatment for exports or other export subsidies. However, 
     since U.S. law is limited to imposing duty on imports, it is 
     of no help to domestic industry facing subsidized competition 
     in export markets.


                    the dunkel draft subsidies code

       Recognizing the impotence of the GATT Subsidies Code 
     disciplines and the limited reach of U.S. CVD law, the U.S. 
     negotiation goals were to strengthen the former and avoid 
     weakening the latter. The negotiations resulted in the 
     ``stop-light'' approach. Subsidies were divided into three 
     categories: Prohibited (Red), Actionable (Yellow) and Non-
     Actionable (Green). Development subsidies are Yellow in the 
     current draft. While this is the same status they had in the 
     1979 Code, the Dunkel draft, by defining subsidy and adverse 
     effects, and requiring removal of the subsidy or its adverse 
     effects if the panel agrees, and making panel reports binding 
     on parties, makes subsidies disciplines real rather than 
     theoretical. Subsidies in the green category are non-
     actionable, i.e., they are not subject to investigation by 
     GATT panels or national CVD laws. The green category 
     currently includes research and subsidies and regional 
     development subsidies.

  Mr. DANFORTH. Madam President, I would like to read from page 4 of 
the memorandum. U.S. Trade Representative Mickey Kantor tells me that 
this memorandum came out of the U.S. Commerce Department. It says as 
follows:

       If the green category--

That is, the permissible subsidy--

     of the Dunkel draft Subsidies Code is expanded to include 
     development subsidies, the ISG--

Which is the U.S. Government--

     will ostensibly choose between matching or exceeding foreign 
     subsidies or accepting the reduced competitiveness of U.S. 
     manufacturers. If the first choice is made, budget resources 
     will have to be made available or the choice is illusory, and 
     the reduction of subsidies discipline would create a net loss 
     to the U.S. economy, as others could subsidize and we would 
     not.
       The overall effect on the economy can be positive only as 
     long as we remain willing and able to exceed foreign 
     subsidies, and to be selective in the particular areas 
     subsidized. If we simply match others' subsidies the economic 
     effect will be neutral, unless the lag time involved in 
     following the lead of others actually places us in a slightly 
     disadvantageous position. In any case, we should not allow 
     foreigners to influence, by their choices, which sectors we 
     subsidize. We will need to get out in front so that our 
     choices are directed by our priorities, and not through 
     reaction to particular U.S. industries seeking subsidies 
     equivalent to those of their foreign competitors. Thus, a 
     decision to reduce subsidies disciplines requires a 
     commitment to be subsidy leaders, both in choosing 
     beneficiary sectors and amounts given, if we are to ensure 
     positive economic effects for the United States. Because the 
     Code will be in effect for many years, the commitment must 
     also be long-term.

  Madam President, this was the position taken by somebody in the 
Commerce Department at the time that the GATT agreement was being 
negotiated. It talks about the necessity, if we are to green light the 
subsidies, of the United States being a subsidy leader. We are to lead 
the way in this new world of subsidies. And if we are going to have 
international subsidies, we had better lead the way or else Airbus is 
going to be replicated over and over again. What happened with Airbus 
was that our aircraft manufacturers, for one reason or another, did not 
want to press the issue of countervailing duty.
  The Europeans were able to subsidize research and development of 
Airbus to the tune of over $26 billion, so that Airbus has never made 
any money, and Airbus has now about one-third of the international 
market on commercial aircraft. I think this is likely to happen over 
and over again.
  What I want to do in this debate is to try my best to focus our 
attention on the issue. If we are going to get into the business of 
outsubsidizing the Europeans or the Japanese or whoever else, let us at 
least do so with our eyes open to reality. It is the judgment of this 
Senator that governmental subsidies will never work as well as the 
marketplace.
  It is the judgment of this Senator that governmental officials will 
never be the shrewd venture capitalists that we will find in the 
marketplace. Why is that? It is because, first of all, I do not believe 
there is any special genius that resides in Washington, DC. I do not 
think people who work for the Federal Government in Washington 
necessarily have a wisdom that is special to Washington. I do not 
believe we have a wisdom that exceeds the wisdom of the marketplace.
  Beyond that, Madam President, we are politicians, and politicians 
apply grease to the squeaky wheel. We are less likely to make decisions 
on the basis of merit than on the basis of political considerations, 
such as: In what district does the company seeking the subsidy reside? 
In which State does it reside? We have seen this with respect to 
Government subsidies for education, Government grants for research and 
education. We have told ourselves in legislative language that we are 
going to do it by peer review. But when it comes down to it, we do not 
do it by peer review.
  I am concerned that Government subsidies for research and development 
in the private sector are going to gravitate toward those parts of the 
private sector with the most political clout. Oftentimes, those are not 
going to be the small varying operators but increasingly are going to 
be those entrenched operations where, in a particular congressional 
district, the demise of that operation would be viewed as politically 
and economically a terrible thing.
  Venture capitalists make decisions on the basis of the merits. If a 
program is not panning out, a venture capitalist will just stop it, cut 
the losses. I have not noticed our ability to cut losses around here. 
We do not get rid of programs. We are notorious for not getting rid of 
programs. We keep them going year after year. Inertia. One of the major 
forces that exists in Washington, DC, is inertia. In a world of high 
technology and rapid change, inertia is exactly what we cannot stand. 
Inertia is what is going to be created if we rely on Government to pick 
what is going to be subsidized and what is not going to be subsidized.
  I have to say that I am especially concerned about the GATT 
agreement. I am especially concerned, because I believe that this green 
lighting of subsidies, this permitting of subsidies, has created for us 
and will create for us in the future the horns of a dilemma. Either we 
are not going to keep up with the rest of the world and we are going to 
see Airbus repeated over and over again in all kinds of different 
industries, or we are going to get in a subsidies war and who knows 
where the money is going to come from, and all of the problems that I 
have attempted to outline are going to come about.
  I hope we can do something about this GATT agreement. With respect to 
S. 4, Madam President, it is industrial policy. There is no other way 
to express it. It is the picking of winners and losers. It is creating 
a fund of money with which somebody in Washington is going to be able 
to say to industry ``A'': You were favored. And to industry ``B'': You 
were not favored.
  I do not think that we in Washington are particularly adept at making 
those decisions. Therefore, I think that we should recognize the issue 
and we should defeat this bill.
  Mr. HOLLINGS addressed the Chair.
  The PRESIDING OFFICER. The Senator from South Carolina.
  Mr. HOLLINGS. Madam President, that is an astounding conclusion, that 
we should defeat the bill, particularly in light of the statement just 
made about peer review.
  This bill was commenced 6 years ago, when I included as an amendment 
on the Trade Act the provisions for the restructuring of the National 
Bureau of Standards into the National Institute of Standards and 
Technology, instituting the advance technology program, the regional 
manufacturing technology centers, modeled on the hugely successful 
agriculture programs, whereby we have the land grant colleges, the 
regional research centers, the extension service, the experimental 
stations.
  If I wanted to plant a victory garden at my home on McComb Street 
here in Washington, I could call the farm extension agent this 
afternoon, and he would have somebody there at 8 o'clock in the morning 
to give me a soil test. It is that detailed and that responsive and 
that successful. That was 6 years ago.
  The distinguished Senator from Missouri and I did have discussions 
relative to this particular measure, beginning in detail, some 4 years 
ago, when we both agreed that this should not be a porkbarrel program, 
we should not politically make the decisions in Washington, as the 
Senator has referred to. We wanted to make absolutely sure this would 
not end up in earmarking in subcommittees--I pick one and you pick one 
and so on--that we would insist on peer review, and that we include, 
and still have included in the measure before us, the National Academy 
of Engineering.
  We are not talking about politicians picking winners, Madam 
President. We are talking about industy picking winners. Private 
industry must come forward with at least half a pocket full of money, 
at least 50 percent. In general now, through experience, that equates 
on their part to about 70 to 75 percent. The Government's contribution 
in that research cannot exceed, under the law, 50 percent, and 
generally speaking will be a mere 25 percent. This will be an industry 
initiative, with merit review by the National Academy of Engineering. 
And the bill itself passed the Commerce Committee, of which the Senator 
was chairman and now is ranking member, passed the House of 
Representatives, and in June 1992, 2 years ago, we had met in 
conference and had conferenced the disputed portions between the House 
and the Senate, and had a bill ready on the floor that last month for 
again a unanimous consent with no objection.

  But the other side of the aisle, and the best I can tell--and this is 
my reasoning, because I had to do the shepherding as chairman of the 
committee--was that the campaign committee on the other side of the 
aisle determined that I was running for reelection and in no sense did 
they want me to have this as a fine issue to run upon. We were not 
going to pass any Hollings bill. There is only a month. So they went 
from pillar to post, from post to pillar, from pillar to post, and they 
kept me running around, and they said: ``I do not really have a hold on 
it, Fritz. Maybe you ought to talk to so-and-so.'' And then I talked to 
so-and-so.
  Anyway, we did not get any bill passed, but it was unanimous in the 
committee, on the floor of the Senate, and ready to be reported again; 
and again, in May of last year, it was unanimous out of the Commerce 
Committee, and has been on the calendar all that time.
  Yes, the Senator wants to get into a GATT argument. This is not GATT. 
He is on the Finance Committee.
  I happen to oppose GATT for different reasons. One particularly about 
the sovereignty and how we are going to control our own affairs. 
Article I, section 8 of the Constitution says the Congress of the 
United States shall regulate foreign commerce--not the World Trade 
Organization; not this group nor that group nor the next group; not 
GATT.
  So I have similar arguments about GATT. But this is not the time for 
GATT. But this should not be permitted to hold up this measure.
  We have dutifully gone, as I enunciated here in my opening comments 
to everyone, to the House colleagues who were interested in it, in 
giving leadership; to the Senate colleagues, the leadership not only in 
our committee, but in the Finance Committee, the Small Business 
Committee, the Subcommitee on Labor, Health and Human Services, and 
Education, and we have worked this out. We have a bill that should not 
even be debated. It ought to be passed by consent.
  But if they want to argue trade philosophy and how we are changing 
it, then you are on to one of my favorite subjects: the philosophy of 
the Founding Fathers on trade.
  It has been a rather uphill battle for this particular Senator to get 
this crowd sobered up on the matter of picking winners and losers. That 
is all we have been doing when you get industrial policy.
  When I say you are going to have a minimum wage, I am not letting the 
market forces determine the minimum wage. I am saying the people's 
representatives in Washington will determine that minimum wage. When I 
say we are going to have to have Social Security, I am not letting the 
market forces, who are so wise, determine it. I am letting the people's 
representatives in Washington determine the pensions and Social 
Security of this particular society.
  When I set up Medicare and Medicaid, another industrial policy, I am 
not letting market forces for the particular manufacturing industry 
determine that particular policy and whether the venture capital can 
support it or not, and we are cutting losses and not cutting losses. 
Oh, no. We are saying let the people's representatives in Washington 
decide with respect to Medicare and with respect to Medicaid.
  When I say that you ought to have a safe workplace, oh, no, do not 
let the market forces decide what is safe. Society got sick and tired 
of workers being cut up and injured and the market forces turning a 
blind eye to it. So America demanded the industrial policy of the 
people's representatives in Washington deciding that we are going to 
have a safe working place. Then they also decided we were not going to 
have the market forces decide with respect to safe machinery. They 
constantly had to get safeguards, we thought, because the market would 
not do it. So we let the people's representatives in Washington, with 
the Occupational Safety and Health Act, determine safe machinery in 
having inspections under the Department of Labor.
  We have seen unfettered market forces at work. I have an old-time 
picture of little 11- and 12-year-olds tied to looms in the textile 
industry, as dictated by market forces. We said: No, we were not going 
to let the market forces do it. We wanted a humane industrial policy 
relative to child employment where we were not going to have them tied 
to that loom.
  You ought to be a Governor of one of the States and go over to the 
adult education center. We had, in my time, 378,000 functional 
illiterates, adults who could not read and write, and I would go to the 
program we put in, and give a high school diploma, finally, or an 
elementary school diploma, finally, to a 78-year-old with tears 
streaming down her cheeks, saying, ``Thank you, Governor. For the first 
time, I can read the newspapers. I worked 50 years in the mill, and all 
I got was a gold watch and I still could not read. But now I can read 
the newspaper.''
  Why? Because this society, we as a people, in order to form a more 
perfect Union, said: To heck with the worst abuses of market forces; we 
are going to have the people's representatives in Washington determine 
the industrial policy with respect to child labor.
  When it came to the matter of plant closing notices, well, plants 
would just pick up and go off to Mexico with no notice at all. And they 
said we were not going to let the market do it because we know what 
happens. They pick up and go and just leave everybody high and dry 
after working 30 years and 40 years, with health care gone and 
everything else. So we said: Wait a minute. You have to have plant 
closing notice. We are not going to let the market forces do that, and 
the venture capital to decide the right and wrong. We want the people's 
representatives to determine that particular industrial policy.
  Back in the first days of our Republic we were told just exactly what 
the distinguished Senator is saying, only in a different way. We were 
told, in a sort of economist's jargon--David Ricardo, Economics 101, 
``The Doctrine of Comparative Advantage.'' The Brits corresponded with 
Alexander Hamilton, and they told Mr. Hamilton: ``Now, you fledgling 
country, you have your freedom. You are a nation state now. And what 
you should do is trade with us what you produce best and we will trade 
back with you what we produce best.'' Free trade, free trade; market 
forces; no industrial policy.
  In response, Alexander Hamilton wrote the book, ``Report on 
Manufacturers,'' and there is one copy left over here at the Library of 
Congress. In a line--I wish I had time to read that booklet to this 
august body--Hamilton said, ``Bug off.'' He said, ``we're not going to 
remain Britain's colony.''
  And the second bill--the first had to do with the oath of office--the 
second bill that passed this Congress on July 4, 1789, was a trade 
bill, a tariff bill, a tariff of 50 percent on 30 articles, beginning 
with iron, textiles, going right on down the list. The Congress said, 
``We are going to build our own productive capacity. We are not going 
to remain your colony and ship to you the timber and the coal and the 
iron ore and the wheat and the foodstuff and you furnish us the 
finished products. No way. No way.''
  Lincoln did the same thing with the transcontinental railroad opening 
up the West. And it was told then to Lincoln, ``Now, we ought to get 
that steel from the factories in Great Britain.'' He said, ``No. We are 
going to build our own steel plants and when we get through we will not 
only have the railroad, we will have our own steel production, too.''
  The best example, of course, is the protective quotas on agriculture 
and wheat, oats, barley, and the other things under Franklin Delano 
Roosevelt, where we put in price supports--subsidies, if you please--
not relying on the marketplace. If you leave it to the marketplace, 
with Mother Nature coming in with floods, hurricanes, earthquakes, 
storms, and droughts, and everything like that, you would have no 
agricultural production. No one, no venture capital, as the Senator 
said, would ever invest in it. Yes, that is right. Venture capital 
would cut all its losses and cut out agricultural production.
  So, instead, we said we are going to have support prices and we are 
going to have import quotas to protect those supports. We are going to 
have an industrial policy in agriculture and not leave it to the 
market. The politicians in Washington support it 100 percent now. Look 
at their votes, Republican and Democrat.
  And when it came to oil in 1954, under Eisenhower, he said, ``Look, 
we will not have sufficient capacity.'' He was much like Winston 
Churchill in World War I. ``By way of national security, we have to 
have a capacity for oil to get our Navy to sea and protect the security 
of this country.'' And so, under Eisenhower, in 1954-55, we passed 
protective oil quotas, industrial policy by politicians in Washington 
and not, my dear friends, not the market forces, because politicians 
will only react, as they say, with political considerations.
  You bet your boots we are swayed by political considerations. That is 
the body politic. I am proud to be here. I know the populist tactic of 
demeaning the Congress and demeaning the Government, and riding 
politicians on a rail outside--term limitations and all that nonsense.
  But I can tell you, yes, ``We the people, in order to form a more 
perfect union,'' we got together. This is the one gift we have given 
free man the world around, democratic self-rule. And those 
considerations by politicians here have been made by both parties, by 
Republican Presidents, by Democratic Presidents, down the line since 
the beginning. We built this industrial empire with protectionism.
  They do not want to listen to that. They do not want to hear it 
because these global multinationals and big banks and retailers are 
calling the shots. We currently have some $70 billion in research. Much 
of that $70 billion, I would say a majority, is in the aeronautics 
industry. The majority of it has been used by Lockheed, Boeing, 
McDonnell Douglas, and the aircraft business.
  We are trying to meet competition, and the competition is helping its 
industry. And that is what Roosevelt did in the days of the Depression. 
In order to keep the banks open, he closed the doors. In order to save 
the farms, he planted under the crops. And today, in order to remove a 
subsidy or barrier, you have to raise a subsidy or barrier and then 
remove them both. That is the proper governmental role.
  We have not been able to do away with Japan's governmental 
involvement with industry. We talk about managed competition. The 
Japanese have been the masters of it. It has worked. They are richer 
than you and me.
  They were totally distraught. We had the only industry, the only 
wealth at the end of World War II. We taxed ourselves to rebuild that 
Pacific rim with the Marshall plan, and it worked. We sent over our 
technology, and it worked.
  But they did not put in--oh, no--they did not put in antitrust 
policies. In America, we said, ``Wait a minute. These big combines will 
come and have predatory pricing and monopolistic practices.'' So here 
we put in the Sherman Antitrust Act and we put in the other antitrust 
provisions.
  In contrast, Japan put in protrust--protrust. They said, ``Oh, no. 
Here is how we are going to finance it, through the Ministry of 
Finance. Here is how we are going to direct it, through the Ministry of 
International Trade & Industry [MITI]. And they have been doing the 
financing and they keep you off Main Street. You do not open a door on 
that Main Street unless the other people in the block vote for you to 
do it.
  We cannot break into the Japanese market because we go whining, ``We 
saved you and rebuilt you from World War II. Now, why don't you be nice 
to us? Be fair. Be fair.''
  Whoever heard anybody in business being fair? Business' job is to 
make a profit. If I can take this pad of paper here and charge you 5 
cents for it and you buy it, fine. If I can charge you $5 and get it, 
that is the market forces.
  And the market forces today include Government participation in the 
particular policies that have market force.
  The Senator says this bill represents a major shift in philosophy. 
But what we have here is what we have always had and what he has voted 
for and what we have continued to have. He was a leader on Sematech. He 
had been a leader over in the Finance Committee on trade matters.
  But I would implore the colleagues, let us not muck up this bill with 
Finance Committee problems and GATT. I am going to be ready to debate 
that at the appropriate time. But do not come now, after we have a 
unanimous vote and have it all worked out on both sides of the aisle 
with all Senators of good will to get a technology authorization that 
is less than 2 percent of the $70 billion in this Government's 
investment total.
  Agriculture has far more; $40 billion over in Defense; Energy has way 
more in research. We found out when we invented VCR's that we did not 
commercialize our technologies. Our scientists won the Nobel Prize but 
the Japanese correlated 22 entities and they won the profits. They 
learned how to commercialize.
  We see they are doing as we have done over 100-and-some years now in 
agriculture with the land grant colleges, America's success story. We 
still outproduce the world on that particular score.
  Now, despite the fact that the distinguished Senator has made up his 
mind, having voted for it twice, let it go by on unanimous consent over 
a 2-year period, he says that something happened in GATT to change 
things. The Senator says, ``I want to do something about this GATT 
agreement.'' Let us do that on the GATT agreement and not this bill. I 
plead with him to let this measure go forward now so we can. I do not 
know of any amendments. But what we ought to be doing now is not 
starting a GATT debate, unless we are going to bring GATT out here and 
bring out the attendance sheets and bring out the letters that 
apparently the Senator has and whatever it is. In that instance I think 
we are going to agree right quickly.
  My particular economy, the economy that I represent in the State of 
South Carolina, the textile industry, was a donor industry. We did not 
get a foot in the door. We had letters. We will show the letters 
promising a 10-year phaseout of the multifiber arrangement. We did not 
get that. We did not get any entry in. We got them coming in and 
cleaning our clock. We were not to get into their markets. They did not 
strengthen the dumping provisions we wanted and those kinds of things.
  On the sovereignty question, we are ready to debate GATT when that 
comes. But this is a technology bill. It is ongoing now. It is a slight 
increase. It still does not come up to near the research moneys we have 
at all these other divisions of Government. It is not a major shift in 
philosophy. Heavens above. We have never left matters strictly to 
market forces. We already have an industrial policy, and always have.
  That was the hue and cry of the previous administration in 1988. 
Instead, the Congress almost overwhelmingly, by 93 votes, passed these 
measures--bipartisan--in this, saying it was not industrial policy. 
That question was raised when we debated it on the trade bill. Since 
that time the Bush administration changed its mind and requested funds 
for it because they reviewed it and saw we had peer review in there, 
that it was industry-initiated; not Government or politicians picking 
and choosing, but rather the industry was doing it.
  So, I hope we can move forward. If we are going to debate that, I 
hope we will hold that up until the GATT treaty comes, which has to be 
submitted sometime this year. The distinguished Senator is a leader on 
the Finance Committee. As a leader on that Finance Committee, I am sure 
his views are going to be respected, as they have been before. Then 
they will report out something and we will have some of those 
recommendations, perhaps. And that can be included in the documents 
when we adopt or reject GATT, whatever it is.
  But this technology policy is for the Government to move forward now 
and help us commercialize our technology, help small industries that 
cannot afford Price Waterhouse or Booz, Allen, or another study group. 
If you are General Electric and you think of a particular initiative 
and you go to the board, the board can say, ``Yes, we ought to look at 
that. We will hire such-and-such a research firm, $5 million, and give 
them 6 months and tell them to report back here by January 1.'' Small 
business cannot do that. It has to look to the Government. And we look 
to see whether that is sound public policy.
  That does not interfere. This could not make a beep in the market as 
compared to the influence of market forces, but it makes all the 
difference in the world with respect to the competitiveness of our 
industry in this country and the retention of our work force.
  The PRESIDING OFFICER. The Senator from Missouri.
  Mr. DANFORTH. Madam President, I do not think this is as small an 
issue as my chairman has led us to believe it is. I think this is more 
than a ``beep.'' I think this is a very big question and that it is a 
question in the minds of many people in our country and many Members of 
the Senate that is in flux.
  I spoke a few weeks ago with a very thoughtful Member of the Senate 
from the other side of the aisle. I was talking to this individual 
about the basic question of the Government's participation in business 
research and development. This person said to me, very frankly, 
``Honestly, I just have not thought it out.'' I think that is true with 
a lot of people in the Senate. We have not really thought it out. I 
believe we should think it out. Because if we do not think it out then 
incrementally we will move in the direction of accepting Government 
subsidies for research and development as being the way we function.
  I am concerned that other Members of the Senate will, in years to 
come, be in exactly the same position that my chairman has so ably 
explained that I am in. Over a period of years, saying either openly or 
tacitly, ``This is all right. This is the kind of legislation we should 
pass.'' And then having it hit you between the eyes at some future 
date, as it did when I reflected on the Uruguay Round, the GATT 
agreement, that things I went along with tacitly without really 
thinking out were just plain wrong. It was a mistake. It was not the 
direction we should move in.
  So my hope in this debate is to try to keep other Senators from the 
same mistakes that I made and to try to ask ourselves, as a Senate and 
as a country, how do we really feel about the Government subsidizing 
business research and development? That is the issue.
  Is it a good idea or is it not a good idea? Does it help the country 
for the Government to get into the business of picking those industries 
which should be subsidized and saying you are the future and we in 
Government are going to put our thumb on the scale in favor of your 
industry? Is that a good approach? Or is it not a good approach?
  I can understand the Senator saying research is so important, 
Government has to help; technology is so important, that Government has 
to help. I understand that. I think it is even a commendable sentiment, 
to say if something good is out there or something promising is out 
there, surely we in Government should nurture it and support it with 
our dollars. That is a position to take. If we are going to take that 
position let us do so recognizing the consequences.
  I do not mean, as my chairman has suggested, to in any way demean 
politicians. I spend a fair amount of my time going around to various 
groups saying that in my opinion the bashing of politicians is totally 
overdone and misplaced. Some of the best people I have ever known in my 
life have served in Government and in politics and in the United States 
Senate. I do not demean them. All I am saying is to have a very high 
regard for politicians is not necessarily the same as saying that, 
therefore, politicians should take the place of the market.
  To have the highest regard for Members of the Senate, to have the 
highest regard for those who are in nonelective parts of our Government 
is not the same as entrusting those people with the decisionmaking 
power that should be in the marketplace.
  The question is not whether you like politicians or do not like 
politicians; the question is: What kinds of decisions are marketplace 
decisions and what kinds of decisions are governmental decisions or 
political decisions? That is the issue now before the U.S. Senate. That 
is the issue raised very ably by the chairman of the Commerce Committee 
and by the supporters of S. 4.
  Some would say, well, Japan does it. Japan recognizes the close 
relationship between Government and business. Japan recognizes that 
there should be great coordination and identity of interests between 
Government and business, and Japan has done very well. So maybe we 
should be like Japan. I think that is an argument that my chairman has 
made. MITI has done it. We should be like MITI. This bill has, in fact, 
programs for our Commerce Department to spend money to help industries, 
high-technology industries, in research and development. Let us turn 
the U.S. Department of Commerce into MITI USA. Why not? Let us be like 
Japan.
  I think there are two arguments. The first is that I am not sure MITI 
is all that great. It has made mistakes. MITI tried to keep Sony out of 
the electronics market. It tried to keep Honda and Mazda out of the 
automobile business. It picked the wrong technology for high-definition 
television. Governmental decisionmakers can make mistakes. So can 
private decisionmakers. The problem is that it is often harder for 
Government to extricate itself from bad mistakes than it is for the 
private sector to extricate itself from bad mistakes.
  So one argument against trying to be like Japan is that MITI is 
hardly a model of perfection. And the second argument is, this is not 
Japan. This is not Japan. We are not the same homogenous, regimented 
country that Japan is. Maybe some people lament that fact, but most of 
us do not. Most of us say, let us be American, and the strength of 
America is that market forces work.
  The United States of America still is the most admired country in the 
world. For all of our self-criticism, we are, not because we have the 
biggest Government or the wisest bureaucracy or governments that are 
best able to make the fine-tuning decisions for our economy that might 
be made, but because the American people out there doing the job, 
spending the dollars, making the decisions, do operate as the invisible 
hand which directs the course of the economy. So I do not think we 
should try to be like MITI.
  Does all this mean that the Government of the United States should be 
passive; that S. 4 is nothing? Is it my argument that Government does 
nothing at all or should do nothing at all, totally laissez-faire? I do 
not make that argument. I make the argument that we should not weigh in 
with specific grants to specific high-technology industries to try to 
foster those industries.
  But there are other, more generic ways that Government can help the 
economy without being so directive. How can we do that? One we 
mentioned earlier. Basically, it is the approach of deregulation, and 
it is the approach that we are taking with respect to 
telecommunications, where Government acts as an impediment to what 
should be happening out there in the marketplace. Let Government clear 
away the impediment. That is one approach.
  Another is to look at our Tax Code, to look at our Tax Code with 
respect to whether we are doing what we should be doing in order to 
foster the economy. I am one of the parents--and it is a good idea so I 
guess a lot of people claim parenthood--I am one of the parents of the 
research and development tax credit. We have been debating for a long 
time whether to make it permanent. Of course the research and 
development tax credit should be a permanent tax credit. It should not 
be extended for a year or 2 or 3 at a time. Why is that? Because the 
testimony that has come before the Finance Committee is that businesses 
make research decisions on about an 8-year cycle, not a 1- or 2- or 3-
year cycle. We can make other improvements in the R&D credit. There is 
a bipartisan group of Senators who have introduced legislation to do 
just that.
  So there are things that we can do to help research and to help 
development. But to help research generically, as with the R&D tax 
credit, is not the same as weighing in on behalf of specific and chosen 
industries in the detailed way that is envisioned by S. 4. It is just 
an entirely different kind of approach.
  One final point, and it is whether somehow I am jumping the gun on 
the GATT debate. I believe that the issues raised by the proposed 
changes in the subsidies code in the GATT agreement are precisely the 
same as the issues raised by S. 4. I believe that the time has come to 
focus on how to address those issues. Every Republican Senator signed a 
letter to Mickey Kantor, the U.S. Trade Representative, asking the 
administration what the administration's intentions are with respect to 
how we can handle the new world of green-lighted subsidies; what is our 
administration's intention with respect to Government subsidies? And 
Mickey Kantor answered that no decisions had been made; there are not 
any intentions. That is really flying blind. If we insist on provisions 
in the GATT agreement which allow for R&D subsidies and then we do not 
say, ``Well, here is our intention with respect to subsidies,'' that is 
just operating with our eyes closed.
  Then we have S. 4, which is specifically a program to create and 
expand Government subsidies for businesses doing research and 
development.
  I believe that just as there is a state of flux that exists in the 
Senate, there is a state of flux that exists within the administration. 
I believe there are people within the administration, and probably the 
President himself, who believes that the Government should invest--and 
that is the word people use now with respect to spending--that 
Government should be investing in the future.
  I also believe that there are people within the administration who 
are not yet sold on the idea of Government investing in private sector 
research and development. I believe--although I am not sure, but just 
sort of on the basis of scuttlebutt--with respect to the subsidies code 
provisions that were insisted on by the administration, there were 
differences within the administration on that.
  What I am suggesting is we are now involved in a national 
consideration on this whole question of subsidies. Better to be 
involved in that consideration in a very direct and open way than to do 
it by stumbling along, by accident. So I think that exactly the issues 
that we are going face on the GATT agreement and should be faced before 
April 15, when the signing deadline comes, I believe these are exactly 
the same issues that should be debated in this Chamber. That is what 
this body is for. It is a major question for the future of the country, 
and it involves the relationship between the Federal Government and the 
private sector. It is about as fundamental as questions of taxing and 
spending. What do we think about the Federal Government? How confident 
are we in the Federal Government? Do we believe that this is where the 
money is and this is where the genius is and this is where the 
decisions should be made?
  If we decide that we should be subsidizing business research and 
development by a total of $2.8 billion over 2 years, there is no way 
that that is not going to manipulate decisions in the private sector. 
It is the purpose of doing it. There is no way we can spend that kind 
of money without manipulating decisions that are made out there in the 
private sector.
  How do we feel about that? Is that the way we want it? Do we really 
believe that that is Government at its best, that the role of 
Government is to make these kinds of decisions? Do we really believe 
that we have that kind of genius, that we can create that kind of 
leadership? Or do we believe that the leadership exists out there in 
the country and all kinds of entrepreneurs and inventors and scientists 
and people out there trying to get the venture capital and people who 
are supplying the venture capital, do we believe that is where the 
basic strength and the genius of the country is?
  That is an important debate, and it is not jumping the gun. It is 
just saying let us open our eyes right now in connection with this 
bill, and not blunder along month after month, decision after decision 
and, before you know it, we have embarked upon a course which seems to 
be the permanent course for the country.
  If we want industrial policy, then let us decide it on this bill. If 
we do not want industrial policy, let us decide that in voting on this 
bill.
  So I think it is an important issue. I do compliment my chairman for 
bringing it to the Senate. It has been a great, great privilege for me 
to work with Senator Hollings over so many years, 2 years of which I 
was the chairman of the Commerce Committee, the golden age of the 
committee, and now 8 years or so since Senator Hollings has been the 
chairman. It has just been a wonderful relationship and still is. But I 
think within wonderful relationships you can have wonderful debates, 
and I believe this is an opportunity for a very important debate.
  Mr. HOLLINGS addressed the Chair.
  The PRESIDING OFFICER (Mrs. Feinstein). The Senator from South 
Carolina.
  Mr. HOLLINGS. The distinguished Senator is correct. They were the 
golden years, and we continued the golden years. And that is what sort 
of nonpluses the Senator from South Carolina in that I remember even in 
that committee, working on the Chrysler bailout, he and I supported it. 
There have been other bailouts, subsidies for industry. In fact, I will 
have to look at the record, but I am sure he had a bill called the 
Aeronautical Technology Consortium Act. He and others cosponsored that 
and likened it to Sematech, and on down the line.
  That is what gets me, because all of a sudden, having supported what 
he is now so severely characterizing in the harshest and most lurid 
terms--calling industrial policy a new departure, a new philosophy. 
Nothing new about it. It is a necessity here in the fierce global 
competition.
  I think they ought to explain how they can support aerospace 
research, but not research for anyone else. The truth of the matter is 
S. 4 is not for a particular industry. It is peer review research by 
the National Academy of Engineering, research that would go to all of 
industry. It is not in the sense, as characterized by the Senator, that 
it is for this particular industry, we are going to pick this winner or 
pick this loser. We are looking.
  Let me give a good example. It disappointed me in a way because my 
textile friends came in a couple of years ago, and they were looking 
under the Advanced Technology Program for a consortium of what they 
characterized as advanced technology. The asked the Advanced Technology 
Administration over in the Commerce Department for a grant, or at least 
a joint effort of research. It was reviewed by the National Academy of 
Engineering and found wanting. They did not qualify. It had mainly to 
do with the refinement of computerization but not advanced technology. 
Did not qualify.
  Madam President, they turned around and went out to California to 
Livermore, and when they ended up they announced a $350 million 
research program. That is bigger than the Advanced Technology Program 
for all of industry. But here, the crowd from my own backyard, they 
know how to go where the money is, and they went out there and they got 
it and they got the program going. They announced it down in Raleigh, 
NC, had a big press conference and everything else and it is ongoing.
  We did not talk then about this being a new philosophy. But I wish to 
emphasize that this is not, as has been described, a new departure here 
where we are going to pick winners and losers constituting industrial 
policy. It is in line with other major programs we have passed on a 
bipartisan basis.
  Consider the basic list of these programs passed by overwhelming 
bipartisan votes: The Agricultural Research and Extension Program, the 
aerospace research at NASA, the nuclear energy projects including last 
year's vote on the integral fast reactor, the Department of Energy's 
$8.5 billion budget for civilian energy research, cost-shared 
cooperative agreements between industry and Federal laboratories, 
notably the Department of Energy, the National Institutes of Health, 
the National Institute of Standards and Technology; DOD, Department of 
Defense cost-shared programs to create dual-use technologies including 
the technology reinvestment project, Sematech, the National Institutes 
of Health's biomedical research which helped create the American 
biotechnology industry, the National Science Foundation's cost-shared 
Engineering Research Centers, small business innovation research 
grants, a major program just reauthorized last year.
  These programs are standard operating procedure of the Federal 
Government supported overwhelmingly by both parties.
  Do not come now, when you get a little technology bill to try to 
bolster the information highway, to bolster advanced research, to try 
to bolster commercialization of technology, to try to help small 
industry, and all of a sudden say, ``Wait a minute now; this is a 
radical new departure.'' It is nothing of the kind.
  It is not a new departure, Madam President, when they support 
agricultural price supports and other financial aid to farmers. Export-
Import Bank loans to finance exports of aircraft, a billion there, 
right there in the Senator's own backyard, McDonnell Douglas, right 
there in St. Louis, the research and experimentation tax credit and, as 
the distinguished Senator said, investment tax credit, the research and 
development tax credit, the full range of SBA programs; the Lockheed 
bailout, the Chrysler bailout.
  Madam President, when it comes to these things, look at the 
industries themselves, representing 329,000 engineers, 3,500 electronic 
firms, 13,500 companies, and 5 million workers. This bill is supported 
by the American Electronics Association; the National Association of 
Manufacturers; the Modernization Forum; the Microelectronics and 
Computer Technology Corp.; Honeywell, Inc.; the National Society of 
Professional Engineers; Business Executives for National Security; IEEE 
USA; Semiconductor Equipment Materials International; Institute for 
Interconnecting and Packaging Electronic Circuits; Wilson and Wilson; 
American Society for Training and Development; Catapult Communications 
Corp.; Dover Technologies; Texas Instruments, Inc.; Columbia 
University; Motorola; Intel Corp.; Cray Research; Electron Transfer 
Technologies; Electronic Data Systems; American Society of Engineering 
Education; U.S. Western, Inc.; Electronic Industries Association; 
Carrier Computer Co.; Southeast Manufacturing Technology Center; Convex 
Computer Corp.; Association for Manufacturing Technologies; 
Semiconductor Research Corp.; American Society of Engineering; AT&T.
  Madam President, I could go on and on. I worked on measures before, 
but I have never enjoyed such overwhelmingly broad support from so many 
business groups. They know and they deal in this global competition, 
these entities that we are talking about, and they know the realities 
of the day. They have no use for further contemplation and study. They 
have thought and worked and worked and thought and competed and 
invested.
  With respect to debt, I have a letter from the White House, Dr. John 
H. Gibbons, assistant to the President for science and technology. I 
happen to know Jack Gibbons because I have been on the Technology 
Assessment Board since its beginning. There has been no more 
distinguished director--totally bipartisan, unanimous votes, 
Republicans and Democrats, for his confirmation. When either party 
changed the chairmanship, they maintained Jack.
  Of course, Jack Gibbons was unanimously endorsed by the Congress 
itself. Here is what he writes to our distinguished majority leader on 
March 7.

       Dear Senator Mitchell: I am writing to express my full 
     support for the GATT agreement that has emerged from 8 years 
     of international negotiations of the Uruguay Round. It is an 
     excellent document that will promote freer and fairer trade 
     and enrich the nations of the world, including our own.
       I am particularly pleased with the outcome of the Subsidies 
     Code in the GATT agreement. It puts real teeth in the 
     disciplining of unfair, trade-distorting production and 
     export subsidies. At the same time, it protects economically 
     desirable U.S. Government investment in research and 
     development from potential challenge by foreign countries.
       I applaud the successful efforts by our trade negotiators 
     in Geneva to improve the language in the Subsidies Code 
     relating to Government research and development investments. 
     The agreement, as negotiated, protects challenge by threats 
     to U.S. Government programs that have long had widespread 
     bipartisan support. Among them are, one: Research for the 
     National Institutes of Health that leads to commercial 
     pharmaceutical or biotechnology products; two, support for 
     aeronautical and space research dating back to 1915 for 
     aeronautics from NASA; three, Sematech, the Government-
     industry consortium to improve semiconductor manufacturing 
     technology that is widely credited with helping to restore 
     the U.S. industry's position as world leader; four, the 
     Technology Reinvestment Program, a cornerstone of our defense 
     conversion program; five, the Commerce Department's advanced 
     technology program designed to promote the growth of 
     knowledge-intensive, wealth-creating industries that generate 
     good, new jobs; six, the thousands of cooperative research 
     and development agreements that industry has signed with our 
     national laboratories to turn Government research into 
     technologically advanced commercial products.
       We must not put these excellent programs in jeopardy. I am 
     proud and grateful that our trade negotiators achieved an 
     agreement that reflects American values and an American 
     approach to R&D partnerships between industry and Government 
     while putting the brakes on free-for-all subsidies.
       With kindest regards,
                                                  John H. Gibbons,
         Assistant to the President for Science and Technology.

  Madam President, I do not have the GATT agreement. I have not yet 
studied it in full depth. I have followed along, and with misgivings. 
But we do not have the GATT agreement here today to debate. The Senator 
from Missouri says that is a debate. Now we have to stop and think. He 
has found a Senator that has not stopped to think. He says: Yes, maybe 
I have not thought of that. And fine business. Let us think of it. Let 
us testify and listen to the testimony before the Finance Committee of 
which the distinguished Senator is a member. Let us see what his 
committee recommends, and then let us treat with it when it comes to 
the floor with the GATT debate.
  Heavens, now. Do not take a bill that we worked on for 3 years, a 
bill that passed unanimously 2 years ago in this body without a 
dissenting vote, and over on the House side in a similar fashion. We 
conferenced the bill and had it signed by all the conferees. 
Republicans and Democrats had signed off on it and were ready to have 
it enacted. But it got caught up in some party politics. Thereby we put 
it again before the committee last year, reported it out in May of last 
year unanimously, Republicans and Democrats, from the Commerce, 
Science, and Transportation Committee, and now we come to the floor and 
say: Wait a minute, GATT. I have changed my mind. This is a new 
philosophy. We had not thought of it. This is industrial policy. There 
is no peer review to this thing. It is just giving industry what they 
want. We will sit around as politicians and pick winners and losers.
  Not so. Not at all. We would not put our names on that kind of 
legislation. We refused to do it when we enacted it in the first 
authorization just a year before; just the year before last, the 
authorization for the National Institute of Standards and Technology, 
the Advanced Technology Program, the manufacturing research centers, 
and these other things that are all included in this particular bill.
  The Senator has something in mind, I understand, maybe a sense-of-
the-Senate resolution. I am ready to vote on it. Nobody is going to 
delay votes. In fact, I hope that we can go ahead--I know there are not 
any votes today--but lay down what they have and any other amendments, 
so tomorrow we can vote and get this measure over to the House of 
Representatives.
  It is too bad that, when it comes time to do our jobs on technology, 
on competitiveness, on research, on a program all agreed to by the 
National Science Foundation and all of industry, then one particular 
Member says: I do not like what they agreed to on GATT.
  That is the debate and we are all going to argue GATT. If there is an 
amendment on GATT, pull it up and vote on it, or whatever. But let us 
try not to misrepresent this particular measure as a harem-scarem 
political industrial policy where we are going to sit around as 
Senators and pick winners and losers. The President will never sign 
such a thing. The distinguished Presiding Officer would never vote for 
such a thing. I would not either. It is not that at all.
  We have been judiciously trying to make sure it did not happen that 
way. In the markup--and I can tell a true story with respect to the 
markup of the Appropriations Subcommittee for this particular endeavor. 
There was a suggestion made that we ought to write it in. I said, ``Oh, 
no, we are not going to set any precedent and write in anybody's pet 
program in this appropriations bill. Otherwise, I am not taking it back 
to the Senate.'' So this Senator has had to confront just exactly one 
particular initiative and faced it down. We have never had in the 
advance technology program the picking of a winner or loser. It is 
private industry that says: On behalf of all industry similarly 
situated, we think this is a program to be funded. We are willing to 
pay 50 percent or more. We want it reviewed by the National Academy of 
Engineering and if we pass muster, let us go to work together for all 
of industry.
  There is no better, well thought-out approach than that. It really is 
way off base to try to put this into that shibboleth of ``industrial 
policy'' that ran its course back in the 1980's when the political rule 
was: When in doubt, do nothing, and stay in doubt all the time.
  Mr. DANFORTH. Madam President, just a few comments in response.
  First, I am not sure that it is accurate to say that this is simply 
what has been voted out of the Commerce Committee. As I understand it, 
there is a substitute. I do not know if it is before us or will be 
brought before us. But it provides for $644 million in additional 
funding over and above the bill reported out of the Commerce Committee.
  Does the chairman want to respond to that? I do not know the status 
of this substitute, whether it has been offered or will be offered.
  Mr. HOLLINGS. The substitute is--of course, we could not have it 
unless we had a majority of the committee. We asked that it be 
reported. That is what we laid down. I was authorized by a majority of 
the committee to put this modification in the committee amendment in 
the nature of a substitute. And then we had OMB go down, and when that 
particular matter became an issue, to make sure we were within all the 
caps. It may be in one particular instance as reported out of the 
committee--in the first instance--but it is reported out by a majority 
of the committee right now. I am sure the Senator has a schedule of 
this summary of the authorizations because it is a 2-year bill.
  Mr. DANFORTH. Yes, I do. Madam President, it is my understanding that 
this version before us is $644 million higher than what we reported out 
of the Commerce Committee.
  Mr. HOLLINGS. Madam President, this is a 2-year authorization. It is 
1995 and 1996. Let me give you the entire authorization. It is $696 
million. Let us get the bill. For 1995, it is $1.37 billion. That is 
one-sixth of agriculture subsidies right this minute.
  In 1996, it goes to $1.478 billion. I am not able to respond to the 
exact amount because I do not know what figure the distinguished 
Senator is using when he says $696 million. This is the committee bill, 
and those are the figures, and that is less than 2 percent of the 
research budget of the U.S. Government. The U.S. Government puts up a 
grand total of $70 billion for research. We have $40 billion in 
defense. We have about $7.8 billion in energy. We have nearly $2 
billion in agriculture, and going down the list. So we have yet--
manufacturing accounts for over 15 percent of the employment in this 
country, even up to that. I do not know about the $670 million, because 
it is double that overall, $1.37 billion for 1994 and $1.478 billion 
for the National Science Foundation, for the Department of Commerce 
program, for the NIST funding, and you can go right down. Advance 
technology programs, extension services, and so on. There was an intern 
program by the distinguished Senator from Montana [Mr. Burns], of our 
committee. He got his little intern program also included in there.
  Mr. DANFORTH. Parliamentary inquiry. Has there been a committee 
substitute that has been offered?
  The PRESIDING OFFICER. I am informed the bill was reported out of 
committee with an amendment in the form of a substitute. Since then, 
the chairman has modified the committee substitute, which he has a 
right to do.
  Mr. DANFORTH. Madam President, so is the modification of the 
committee substitute now before the Senate?
  The PRESIDING OFFICER. That is correct.
  Mr. DANFORTH. Is this presented to the Senate in the form of an 
amendment to an underlying bill, or is this the bill as it now appears 
before the Senate and, therefore, open to amendments in the first and 
second degree?
  The PRESIDING OFFICER. The answer to the Senator's question is, yes, 
it is open to amendment in the first and second degree and, say, an 
amendment to a complete substitute.
  Mr. DANFORTH. Madam President, I just wanted to make a couple of 
comments in response to the points made by Chairman Hollings. The first 
point is that the chairman referred to the research and development tax 
credit. I know I am repeating myself because just a little while ago in 
debating, I stated that one of the things we could do in order to help 
American business in research is to make permanent the R&D tax credit. 
The R&D tax credit--which could be made permanent and which could be 
improved and should be improved --is very different from an industry 
specific grant of funds, because it is generic. It applies to all 
industries, and it keeps at risk dollars that are invested by the 
private sector. So I do not view it as the kind of industry-specific 
approach that is taken in this legislation.

  With respect to the so-called Aerotech proposal, the chairman is 
correct. In response to the agreement that was reached by the prior 
administration with Airbus, it was the position of this Senator that 
that agreement adopted the position that certain subsidies for the 
aerospace industry would henceforth be permitted, very much the same as 
the green-lighting and the subsidies code that has been agreed to in 
the GATT would permit certain subsidies.
  It was my position then and is my position now that, if the U.S. 
Government is going to agree that subsidies are going to be permitted, 
then we better figure out where we go from here. The position that I 
took--I think it was last year, maybe the year before--was to introduce 
two bills which were in the alternative. One bill would have mandated a 
countervailing duty case against Airbus, and the other bill would have 
said, if we are not going to have a countervailing duty bill, then we 
are going to have to match them with subsidies. In other words, if you 
have every country in the world functioning on the basis of subsidies, 
yes, we are going to have to match them.
  That is why it is important for this administration to be very open 
about telling us what its proposal is with respect to future subsidies.
  The worst thing that can happen to American business is if we permit 
other countries to subsidize and we do not do it ourselves. That is 
part of the overall debate, I believe. I think the best approach to 
take is not to green-light subsidies, not to authorize subsidies, and 
to file countervailing duty cases. But if we are not going to file 
countervailing duty cases, then the only alternative to our getting 
into this subsidy chase is to concede markets, whether it is in 
aerospace or high-definition television or pharmaceuticals, or anything 
else, to other countries. It is a totally unworkable situation.
  So I think what this administration has done in the GATT negotiations 
is to put us on the horns of a dilemma. The dilemma is either we do not 
subsidize and we give up market after market, depending on what country 
in the world wants to subsidize, that we will not keep up with it and 
we cannot countervail; or, on the other hand, we get into the S. 4 
business of trying to get into the subsidies chase.
  I would rather vote for S. 4 if we are not going to countervail. If 
the only choice is Aerotech and S. 4 and subsidies, we better be 
prepared for subsidies in a big way or we are going to see catastrophe 
in the American economy. That is not to say I like S. 4. That is not to 
say I like industrial policy. It is just to say that we are entering 
into a brave new world now in which subsidies are going to be the 
accepted fact and there is not any possibility to do anything about 
them.
  The final point that I make is with respect to the long list of 
industry endorsements. Yes, that is true, and it is not surprising. I 
will tell you how to get industry endorsements. Promise money. If we 
have $2.8 billion dangling before the industries of America saying this 
is a plum and you can pluck the plum, of course they are going to 
gather around to pluck the plum. I mean this is real money. It is 
borrowed, and we do not have a lot of money in our Treasury now to 
offer up to all these industries. So it is borrowed money. But I guess 
we have accepted that funny money. We have accepted that.
  I am not even making the budget argument. Maybe other Senators will 
want to make it. I am not even making it. All I am saying is even if it 
is funny money, $2.8 billion dangled before the outstretched arms of 
American industry gets an awful lot of endorsements.
  I would certainly agree that it is passing strange that business 
people who are constantly complaining about Government and the excesses 
of Government and the terrible problems of the Federal deficit are the 
ones that say, yes, please pass this bill authorizing an additional 
$2.3 billion so that we can get to the public trough, the sooner the 
better. It is strange, but it is really not very surprising.
  However, there are those who see the problem. For example, Mr. Don 
Valentine, who is a director of Apple Computer and a venture 
capitalist, was quoted as saying:

       To Washington I say, please do not help us. The world of 
     technology is complex, fast changing, unstructured, and 
     thrives best when individuals are left alone to be different, 
     creative, and disobedient * * *

  Well, that is one venture capitalist saying to Washington ``Do not 
help us. Let us do our thing.'' I hope there are more like that. But I 
can understand when there is money to be had, there are endorsements to 
be given.
  The PRESIDING OFFICER. Who seeks recognition?
  The Senator from South Carolina.
  Mr. HOLLINGS. Madam President, the Senator says dangle money. We have 
been dangling it--defense $38.1 billion, up to $40 billion; NASA $8.5 
billion--dangling money--civilian energy and research and development, 
$6 billion. You could go right on down about how you get people--you 
dangle money.
  Emerges the 2-year--it is a 1-year, $1.3 billion and the next year 
$1.4 billion. And the reason for that change, a minute ago asking about 
it, was $474 billion difference because the original bill had 1994 and 
1995. This bill now has 1995 and 1996.
  So, it is very, very modest, but it is not dangling little plums. It 
says we are opening the door and we are opening that door of 
opportunity by saying to you with the tough financing now and the 
venture capital shortage and otherwise that if you come with a majority 
of the money--and they have--if you are willing to go through peer 
review where it is not just for your particular little industry but for 
all of industry, we want to back you up in that kind of research. It is 
in the public interest to do so.
  That is what we determined, and that is why many, many businesses 
without the contacts, and so forth, in Washington, generally speaking, 
say: ``Out of here. We do not want to have anything to do with it.''
  I have made the talk before myself many times and people being 
different and everything else.
  But I hope it was not the former head of Apple Computer now, who 
seems to have gone broke, that he is reading from who wants to be 
different. He is not different at all. We have had a lot of 
bankruptcies, and he is not different if that is the kind of difference 
he wants.
  The Senator from Missouri asks that we get President Clinton to go to 
other countries and say, ``Drop your research programs.'' That is 
exactly what he says. He says now all other countries should abandon 
their research programs.
  How can the Clinton administration ask the other countries to do 
that? Where they find it is in their self-interest and working, that is 
what is done.
  There is an old saying in equity that he who seeks equity must do 
equity; he who comes in must come with clean hands.
  How do we welcome Airbus and not make any complaint? They have just 
got more of it.
  For years on end every time we got the NASA space program, I know at 
least for the past almost 27 years, any time that subject has come up 
on the floor of this Senate we immediately talk about the spinoff and 
how our aircraft industry is doing so well.
  Now, apparently it is not doing as good as Airbus or whatever it is 
because they are just paying it out at a total loss. Ours was DOD 
research, Department of Defense research, and all that technology, all 
that National Aeronautical and Space Administration research, all that 
technology was going into the private Lockheeds, Boeings, McDonnell 
Douglass. In addition to that, it was not helping exports. It was to 
subsidize the Export-Import Bank to a tune at least of $1 billion, the 
last figure I saw, and that was a debate several years ago. It was to 
subsidize the exported sales of those aircraft.
  So we pay for the research and we pay for the sales here as 
politicians, and then we want to get sanctimonious about an alleged new 
philosophy here, that this is a dangerous new departure, and we had 
better ask the Senate to think about it. Nonsense.
  Regarding GATT, again, I say to the Senator, I do not see what 
section of the bill is in conflict. Regarding the underlying philosophy 
of the bill, I would like to see the amendment to what section it is 
that he dislikes, because I know he went over it the year before last 
and approved it. I know he went over it last year and approved it and 
supported it. I know he helped me clear the floor in order to try to 
get it to the conference 2 years ago. And I know he has helped clear it 
to get it up for consideration right now.
  There was no question until this GATT measure came up. Now we do not 
have the GATT papers before us.
  But I put in the best provisions I can obtain at this particular time 
in consultation with the gentleman in charge of technology, and he says 
that the Clinton administration went about it in the appropriate 
fashion. Trying to protect what? To protect the aircraft subsidies, as 
he characterized it; to protect NIH, National Institutes of Health 
subsidies; agriculture subsidies. All countries have such subsidies for 
agriculture.
  Now to get up and say we are just not going to play the game--this 
do-nothing approach has been America's problem for the past 45 years. 
We have not put in a competitive industrial policy. We intentionally 
did not put it in at the end of World War II. We had the only industry. 
We said, ``Heavens above, how do you expect these other economies in 
Europe and Asia to revive?''
  ``Let them make the textiles,'' they told me. ``Let them make the 
shoes. We will make the computers and the airplanes.''
  Now they are making the airplanes and the computers, and the argument 
comes to the floor, ``Well, let's not do anything about it,'' because 
certainly it is not going to change these other countries around. We 
did not enforce any of our trade bills until the current administration 
came into office.
  So I hoped we could move on here and try to deal with what amendments 
we have. If an individual Senator has an individual problem on GATT, 
then that is most appropriately addressed later, when we consider GATT. 
But do not bring it up here in the middle, in the first part of March, 
when we are trying to get out this legislation that has been agreed to. 
This bill has been agreed to, just waiting its turn. This is not the 
time to bring up the GATT agreement. GATT is going to come before us 
sometime later this summer.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time? Who seeks recognition?
  Mr. HOLLINGS. Madam President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The absence of a quorum has been suggested. 
The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. HOLLINGS. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. HOLLINGS. Madam President, I have before me a release today from 
the National Association of Manufacturers, entitled ``NAM Says S. 4, 
National Competitiveness Act Will Help Small, Medium-Sized 
Manufacturers Modernize.'' Let me quote from the press release:

       ``Legislation almost exactly the same as S. 4, the National 
     Competitiveness Act, has been before the Congress during the 
     past two sessions. The National Association of Manufacturers 
     supported the basic purpose of this legislation when it was 
     introduced, and we continue to support it today,'' Howard 
     Lewis, vice president, international and economic affairs at 
     the National Association of Manufacturers, said Monday.
       ``As we have made clear over the past several years, our 
     support for the National Competitiveness Act centers largely 
     on Titles II and VI, which deal with manufacturing extensions 
     programs (Title II) and high performance computing and 
     networking (Title VI),'' he said.
       ``The NAM believes that a more coordinated manufacturing 
     extension program, building on current efforts in this area, 
     would help U.S. manufacturers, especially small- and medium-
     sized firms, learn about and adopt new manufacturing 
     technologies,'' Lewis added.
       ``The ultimate responsibility for adopting these new 
     technologies and techniques lies with the private sector. The 
     NAM has long recognized, however, that there is an 
     appropriate role at all levels: Federal, State, and local,'' 
     he emphasized.
       ``We believe title II of the National Competitiveness Act 
     would help strengthen and coordinate current manufacturing 
     extension programs.
       ``If we are to speed the development and deployment of 
     modern manufacturing processes to a broad cross-section of 
     American industry, and not just to several hundred big 
     companies, we need to learn from and build on our current 
     efforts. Title II in S. 4 would help achieve this goal,'' 
     said Lewis.
       ``S. 4 also builds on bipartisan efforts to maintain the 
     U.S. lead in high-performance computing and networking. It 
     provides a good framework for areas of mutual benefit to 
     industry and Government research and development efforts,'' 
     Lewis concluded.

  Madam President, I think that is an outstanding statement as to the 
context of this particular measure. It is just a matter of politicians 
plucking plums, as has been described, but rather it is a matter of 
lending a hand to small business, to boost the competitiveness of small 
business.
  We have talked and talked and talked. The U.S. industrial worker is 
the most productive in the world. Japan is No. 8, the Netherlands is 
No. 2, and Germany, No. 3.
  You get the U.S. Department of Labor and the U.N. data, and they both 
agree on the productivity per man-hour. But we burden industry with 
minimum wage, Medicare, Medicaid, Social Security, unemployment 
compensation, clean air, clean water, plant-closing notice, parental 
leave, all of these things go in.
  Before I open up my Hollings Manufacturing, I have to comply with all 
of those things. That is a cost of doing business. It requires more 
bureaucracy, employees to keep the records, a safety director. This is 
at the heart of the great American standard of living--but it comes at 
a cost in terms of competitiveness.
  Now without that standard, Japan and others have come along with a 
government orchestrated assault to seize market share. They do not care 
about short-term profit. They want market share.
  I have asked the Secretary of Commerce to please get in and bring a 
dumping case on behalf of the U.S. automobile industry. The Toyota 
Cressida sells right now for approximately $21,800 in the United 
States. It sells for $29,300 in downtown Tokyo. That is an $8,500 
difference; it is dumping, pure and simple.
  We had the figures the year before last where Japan had lost some 
$3.2 billion by dumping automobiles, whereby, they made it up with over 
$11.1 billion in domestic profits due to the way they orchestrate and 
control their home market. So they highball it there, and they make up 
those amounts otherwise, and they are trust procedures.
  So we could well bring a dumping case. We could do a lot of these 
other things. But for right now, recognizing small business and the 
research needed, and the suggestions made and studies, consulting for 
the commercialization of this technology--this is the particular 
measure we have all voted for and all supported.
  I yield the floor.
  Mr. PRESSLER addressed the Chair.
  The PRESIDING OFFICER. The Senator from South Dakota.
  Mr. PRESSLER. Madam President, as the Senate considers S. 4, the 
National Competitiveness Act, I would like to address an issue I have 
been working on for over a year. As the ranking member on the Small 
Business Committee, I would like to make clear for the record the 
chronology of events surrounding this controversy.
  While I am troubled by a variety of provisions contained in S. 4, one 
has troubled me greatly from the very start. Specifically, it is the 
provision in the original bill that would have created a Civilian 
Technology Investment Companies [CTIC's] Pilot Program within the 
Department of Commerce. CTIC's would invest Government money in high-
risk, long-term, advanced technology projects. They would provide 
venture capital to private businesses.
  The problems with this pilot program are twofold. First, it would 
create a new Federal program that nearly duplicates a program already 
in operation at the Small Business Administration [SBA]. The SBA Small 
Business Investment Company [SBIC] Program has been successfully 
financing technology ventures for more than 35 years. In fact, in 1992, 
25 percent of SBIC financing went directly to high-technology ventures. 
SBIC success stories include Apple Computers, Cray Research, Intel 
Corp., and Compaq Computers. The SBIC Program clearly has the 
experience necessary to make venture capital investment work--
experience the Department of Commerce would have to build from the 
bottom up. The SBA has the structure and the know-how to implement the 
program immediately and efficiently.
  Second, project funds may not go to the firms most in need of such 
help--small- and medium-sized companies. S. 4 contains no limit on the 
size of recipient companies and it specifically authorized joint 
ventures. This would open the door to channeling Federal funds to 
Fortune 500 companies. Are these large companies in need of taxpayer 
dollars? Certainly not. Unlike big business, smaller companies are 
often shut out of traditional capital markets and cannot take on the 
risks of technology development alone. Scarce Government resources 
should not go toward putting big businesses on the Government gravy 
train. If a large company has an advanced technology product that is 
just around the corner, such a company can raise capital in private 
financial markets without a Government handout. If Government is going 
to play the role of venture capitalist, the funds should be awarded 
only to the smaller technology firms that truly need assistance.
  In February 1993, I questioned Commerce Secretary Ron Brown about 
CTIC's during a Commerce Committee hearing. In a written response he 
asserted that, ``The CTIC proposal attempts to channel funding to 
smaller high-technology companies needing less than $2 million and that 
may be years away from payoff.'' Secretary Brown also agreed that the 
program should be targeted toward small business.
  In March of last year, I was joined by eight of my Small Business 
Committee colleagues, from both sides of the aisle, in contacting 
Chairman Hollings to express our reservations concerning S. 4's CTIC 
provision. We all believed strongly that the SBIC Program is a more 
appropriate delivery mechanism for the type of assistance envisioned by 
the CTIC pilot program. These same concerns were expressed to Secretary 
Brown, Budget Director Leon Panetta, Acting SBA Administrator Dayton 
Watkins, and White House Aide Bob Rubin. I ask unanimous consent that a 
copy of the letter sent to Secretary Brown be included in the Record 
immediately following my remarks. As the letters were identical, I will 
not ask for the others to be printed.
  The PRESIDING OFFICER (Mr. Reid). Without objection, it is so 
ordered.
  (See exhibit 1.)
  Mr. PRESSLER. At his nomination hearing on May 6, 1993, SBA 
Administrator Erskine Bowles responded to my questions about the 
capability of the SBIC Program to take on the CTIC Program. He pointed 
to recent legislation reforming the SBIC Program and to SBIC's 
increasing emphasis on technology development. He also stated that 
``SBA could easily modify the existing SBIC Program to establish a 
dedicated CTIC Program . . . such a program could be operational within 
1 year of the enactment of the enabling legislation and program 
funding.'' Administrator Bowles estimated it would take at least 4 
years for another agency to start such a program from scratch.
  S. 4 was passed out of the Commerce Committee on May 25, 1993, with 
the CTIC Program under the jurisdiction of the Department of Commerce. 
I then filed a floor amendment to remedy the problems in the committee 
version by moving the CTIC Program from the Department of Commerce to 
the SBA.
  The Small Business Committee held a hearing on the promotion of 
critical civilian technology on June 9, 1993. The testimony of the SBIC 
Program in fostering the development of high technology. One witness 
testified that the May 24, 1993, issue of Business Week listed the 100 
best small companies and at least 10 of these firms were financed by 
SBIC's; 7 of the 10 are technology-based companies.
  This issue has attracted Nationwide attention. George Will and the 
Wall Street Journal have written about the limited role Government 
should play in high-technology ventures. Mr. President, I ask unanimous 
consent that these two articles be printed in the Record immediately 
following my remarks.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (See exhibit 2.)
  Mr. PRESSLER. The National Venture Capital Association, the National 
Association of Manufacturers, the National Association of Small 
Business Investment Companies, Project Services International, and 
Pennsylvania Small Business United all have expressed support for 
housing the CTIC Program at the SBA.
  I am pleased that the distinguished chairman of the Small Business 
Committee, Senator Bumpers, and the Senator from West Virginia, Senator 
Rockefeller, have worked with me to achieve major adjustments to the 
CTIC provisions of S. 4. While certainly not perfect, this section of 
the bill has been improved. The revised language creates a CTIC pilot 
program jointly run by the SBA and the Department of Commerce. The 
Licensing Committee created by the legislation would be made up of 
representatives from both the SBA and the Department of Commerce. I 
hope the vision of helping small businesses, expressed to me by 
Secretary Brown in February 1993 is not lost.
  Now that the CTIC Program is a joint project of the SBA and the 
Department of Commerce, the Senate Small Business Committee would have 
oversight authority over the program. My colleagues can be assured that 
Chairman Bumpers and I will exercise that authority to ensure small 
businesses are helped, not harmed, by this new program. In addition, 
the bill has been modified to authorize CTIC's to share their revenue 
with the Federal Government once they become profitable. The 
legislation also no longer contains an open ended funding authorization 
and it would require one Commerce Department member of the Licensing 
Committee to have financing expertise.
  I am proud to have fought this battle for small business. I also 
would like to thank my good friend and chairman of the Small Business 
Committee, Senator Bumpers, and Senator Rockefeller. This should not be 
seen as a committee turf battle. It has been a healthy and worthwhile 
debate over the proper role for the Federal Government in financing 
startup critical technology. I want the record to be clear that I will 
continue to fight to eliminate Government waste and to see that 
taxpayer dollars are directed to their most efficient and equitable 
purposes.
                                  ____


                               Exhibit 1

                                                      U.S. Senate,


                                  Committee on Small Business,

                                   Washington, DC, April 16, 1993.
     Hon. Ronald H. Brown,
     Secretary, U.S. Department of Commerce, Washington, DC.
       Dear Mr. Secretary: As members of the Senate Business 
     Committee, we are concerned about the proposal to create 
     Critical Technology Investment Companies (CTICs) which is 
     contained in S. 4, the ``National Competitiveness Act of 
     1993.''
       We commend and support the goal of maintaining the United 
     States' advantage in developing and marketing critical 
     technologies. Much of the success of American companies can 
     be attributed to utilizing advanced technology that is 
     properly integrated with highly trained labor. However, we 
     disagree that the establishment of CTICs, which duplicates 
     the Small Business Administration's (SBA) well-established 
     Small Business Investment Company (SBIC) program, is 
     necessary to accomplishing that goal.
       As you may know, the advanced technology industry has been 
     significantly boosted by the SBIC program administered by the 
     SBA. The SBIC program provides almost $200 million each year 
     in government financing for small businesses--17 percent of 
     which goes to small businesses in the technology industry. 
     This government leverage allows for hundreds of millions of 
     dollars of additional private capital to be used for small 
     business financing. Successful companies helped by the 
     program include Intel Corporation, Apple Computer, Cray 
     Research and Compaq. A major three-year effort to reform and 
     improve the SBIC program resulted in legislation which was 
     enacted in September 1992. Once the changes are implemented, 
     the popularity of the program is expected to increase, likely 
     providing even more money for investment in high technology 
     companies.
       Sections 322 and 323 of S. 4 would create CTICs which seems 
     to virtually duplicate the SBIC program and the financing 
     services it provides. In fact, the House companion 
     legislation to S. 4 incorporates much of the 1993 SBIC 
     legislation by reference. Also, S. 4 would require the U.S. 
     Department of Commerce to create a managerial apparatus 
     parallel to that of the SBA to administer the CTICs.
       We believe the SBIC program is an appropriate delivery 
     mechanism for the type of assistance envisioned by the CTIC 
     provisions of S. 4. It is in the nation's best interest to 
     promote the development of advanced technology while reducing 
     government waste and duplicative spending. Focusing resources 
     on proven programs would increase the effectiveness of 
     federal dollars and lead to improved development of advanced 
     technologies in the United States.
       We look forward to working with you to promote advanced 
     technologies effectively and efficiently. Improved 
     utilization of technology will help small business grow and 
     create more jobs for American workers.
           Sincerely,
     Dale Bumpers,
     Dirk Kempthorne,
     Paul Wellstone,
     Carl Levin,
     Larry Pressler,
     Howell Heflin,
     Robert F. Bennett,
     Malcolm Wallop.
                                  ____


                               Exhibit 2

              [From the Wall Street Journal, June 9, 1993]

            SBA, Commerce Square Off on High Tech Financing

                          (By Jeanne Saddler)

       Washington.--The Small Business Administration and the 
     Commerce Department are heading for a showdown over which 
     agency will take the lead in developing new high technology 
     companies.
       Officials at both agencies want to head up a new government 
     venture-capital program for small and midsize high technology 
     companies that Congress may create as early as this month. 
     The outcome of the fight could heavily determine what size 
     and type of companies get funding through the new program--
     and at what stage of their development. The fight could also 
     shed light on how much power the SBA will have in the Clinton 
     era.
       The Senate Small Business Committee is scheduled to hold 
     hearings on the issue this morning. The Commerce Department 
     would be the winner under the proposed legislation, which the 
     full Senate is scheduled to take up this month and which the 
     House already has passed.
       But the SBA and its backers in the Senate argue that the 
     new effort would be almost an exact duplication of the SBA's 
     small-business investment company program and are pressing to 
     wrap it into the agency's existing effort. Like the SBA 
     program, the new plan calls for venture capital firms to 
     obtain a government license and then add federal funds to 
     their own to boost investments in emerging companies.
       The administration still hasn't decided which agency it 
     wants to run the new financing program. A White House 
     official said the administration clearly wants to expand the 
     Commerce Department's role in advancing high technology, but 
     said it is uncertain whether the department will have a role 
     in financing it.
       The SBA knows exactly how it stands on the issue. ``I feel 
     very strongly the program should be here,'' says Erskine 
     Bowles, the new SBA administrator who previously headed his 
     own investment banking firm in North Carolina. ``You don't 
     have to be a high tech guru to decide which venture 
     capitalists you should deal with. I have more experience 
     dealing with venture capital than anyone in this 
     government.''
       Mr. Bowles is pitted against Commerce Secretary Ronald 
     Brown, who has embraced the administration's effort to 
     advance critical technologies. Commerce officials say the 
     agency is studying how the program would fit in with its 
     ``leadership role'' on civilian technology programs.
       The SBA's investment-company program was started 35 years 
     ago, after the Russian Sputnik rocket was launched, to fund 
     high technology start-up businesses. But beginning in 1986, 
     many of the investment companies that the program sponsored 
     ran into serious financial trouble. The SBA had to liquidate 
     the assets of 191 of these concerns. Investigators blamed the 
     problems on the recession and poor SBA oversight. Currently 
     about 300 of the investment companies are operating.
       The program was overhauled last year to make it focus more 
     on equity investments rather than loans. But Barbara 
     Plantholt, president and chief executive officer of Triad 
     Investors Corp., of Baltimore, Md., says she ``gave up on the 
     SBA program last fall.'' She said her venture-capital firm 
     had considered joining the SBA program, but decided against 
     it because, under the rules, the federal government must be 
     the first investor to get its share of the profit from an 
     investment. She says that rule would force the private 
     partners to wait even longer for a return, a prospect they 
     didn't like. But Ms. Plantholt said versions of the Commerce 
     program she's seen are too complicated.
       Sen. Jay Rockefeller, one of the main proponents of putting 
     the new investment program in the Commerce Department, says 
     the SBA's program doesn't address the decline in venture 
     capital for early-stage investments in critical technologies. 
     ``Only 19% of SBIC funds go to anything within the broadest 
     definition of technology,'' the West Virginia Democrat says. 
     ``Further, the SBA focuses . . . only on small businesses. 
     But critical technology isn't found solely in small 
     companies.'' (Most discussions of the Commerce program have 
     focused on small and midsize companies, however.)
       The new program would provide early-stage investment money, 
     or seed capital, for companies in industries such as advanced 
     electronics, new industrial materials and biotechnology, says 
     an aid to the senator. The Senate bill provides $100 million 
     over a two-year period for the effort, beginning in fiscal 
     year 1995. The SBIC program provided about $396 million in 
     financing last year, including about $70 million for 
     technology companies.
       Venture capitalists have lined up on both sides of the 
     emotional dispute. Patricia Cloherty, president of Paricof & 
     Co., a New York venture-capital fund who wrote the reforms 
     for the SBA program that Congress later adopted, is 
     particularly incensed. She says the proposed Commerce 
     Department program would favor large businesses and would 
     offer them funding more cheaply, without safeguarding the 
     government's money.
       ``It giver money away with no strings attached. This is 
     destructive and a sure money-loser,'' says Ms. Cloherty, who 
     is also vice president-elect of the National Venture Capital 
     Association. She believes two separate government-sponsored 
     venture programs would invite abuse.
       With the Senate scheduled to vote soon, several members of 
     the Small Business Committee are lobbying their colleagues to 
     simply broaden the mandate of the SBA's existing program 
     instead of creating a new one. Committee Chairman Dale 
     Bumpers (D., Ark.) and Sen. Larry Pressler (R., S.D.) say the 
     Commerce Department program would serve only big companies 
     that could get bank financing. ``I'm really upset about this. 
     To build a whole new program is silly; it's an example of 
     what's wrong with government,'' Sen. Bumpers says.
                                  ____


               [From the Washington Post, June 10, 1993]

                    Government as Venture Capitalist

                          (By George F. Will)

       At the Cato Institute, a libertarian think tank here, a 
     recent lecturer drolly introduced himself in language 
     fashionable in Clinton's Washington: ``I am an excess of the 
     1980s.''
       He is T.J. Rodgers, president and CEO of Cypress 
     Semiconductor, which he founded 10 years ago with one used 
     computer and no other employee. He is one of those who, in 
     Clinton's words, ``profited most from the uneven prosperity 
     of the last decade.'' (A question: What would ``even'' 
     prosperity look like?)
       Today he is wealthy. But forgive him that sin. His company, 
     which has paid $60 million in taxes, has created 1,500 jobs 
     for employees who have paid $150 million in taxes. They all 
     own Cypress stock, which has generated today's market value 
     of $500 million for shareholders.
       ``Venture experts,'' he says, ``are wrong more often than 
     they are right. But surely they are right more often than 
     Washington would be.'' If that thought is sensible, the 
     proposed National Competitiveness Act (H.R. 820) is not.
       It would get government deeply into business as a venture 
     capitalist, providing loans to, and buying preferred stock 
     in, venture companies. This capital allocation would be done 
     by the Commerce Department, currently run by Ron Brown, the 
     former lobbyist and head of the Democratic National 
     Committee. H.R. 820 could be a political slush fund for 
     compliant companies.
       If so, it might achieve the near impossible--making the 
     Commerce Department's record even worse than it is. More than 
     half the almost $1.2 billion lent by Commerce in the last two 
     decades is in default. In the 1970s the Economic Development 
     Administration at Commerce lent $471 million, of which just 
     $60 million has been recovered. And what is the penalty for 
     such failure in Washington? A reward, such as H.R. 820's 
     fresh infusion of taxpayers' dollars. Do you wonder why there 
     is so much failure in Washington?
       Rep. Chris Cox (R-Calif.) notes that H.R. 820 would add 
     more than $1 billion to the deficit in 1995. It would do so 
     by authorizing the government to buy 20 percent of the equity 
     capital in venture firms and to guarantee the dividends on 
     preferred stock. ``I suppose, therefore,'' Cox says with tart 
     irony, ``it is fitting that this bill is called the National 
     Competitiveness Act, because it will give most private firms 
     the opportunity to compete with government-subsidized 
     securities.''
       Or perhaps H.R. 820 should be titled The Wesley Mouch 
     Memorial Bill. ``This whole plan,'' says Cox, ``reeks of 
     special interest favoritism and make-work waste for 
     bureaucrats. Anyone who has read Ayn Rand's `Atlas Shrugged' 
     will see frightening similarities between this statist scheme 
     and the disastrous projects of the novel's arch bureaucrat, 
     Wesley Mouch.''
       But Cox's preferred title for H.R. 820 is The Jurassic Park 
     Act because it will squander money cloning ``new industrial 
     dinosaurs.'' The bill's premise is that Commerce bureaucrats 
     and political operatives make better investment decisions 
     than do authentic venture capitalists and authentic investors 
     when putting their own money at risk.
       But when private investors guess wrong, the market 
     liquidates their mistakes. When government capital-allocators 
     guess wrong (as they are bound to do much more often than 
     private investors, whose calculations are not colored by 
     politics), the government just re-labels its mistakes as 
     ``jobs programs'' and pours in more money to keep them 
     afloat.
       Cox quotes Don Valentine, a venture capitalist who helped 
     launch a number of venture companies, including Apple 
     Computer: ``To Washington I say, please do not help us. The 
     world of technology is complex, fast-changing and 
     unstructured. It thrives best when individuals are left alone 
     to be different, creative and disobedient. Go help all the 
     people who know how pork works and who want to be taken care 
     of. But please do not help us.''
       Of course Cox and others have argued in vain. The 
     Democratic-controlled House passed H.R. 820, not to enhance 
     competitiveness but to concentrate yet more power in 
     Washington, further permeating American economic life with 
     the inefficiencies of politics.
       Consider. Clinton wants to raise the top tax rate on the 
     wealthy who do a disproportionate share of the nation's 
     investing; and he wants to impose a 10 percent surcharge on 
     those who have the most to invest; and he wants to increase 
     the corporate rate; and he wants to keep high the capital 
     gains tax rate that punishes people who increase the value of 
     an enterprise. And yet he has the brass to say H.R. 820 is 
     ``wise,'' presumably because venture capital formation is 
     inadequate. H.R. 820 is a paradigm of government fattening 
     itself by pretending to cure problems it causes.
       So, which do you prefer, T.J. Rodgers, the self-described 
     ``excess of the 1980s,'' or H.R. 820, a sample of the 
     excesses of the 1990s?

  The PRESIDING OFFICER. The Senator from South Carolina.
  Mr. HOLLINGS. Mr. President, I am confident the Senator from South 
Dakota signed off on this bill. In the new section 302, under 
subsection 4(C), eligible technology firm means a company ``which meets 
size standards set by the Administrator.''
  That is the language we got from the distinguished Senator in the 
Small Business Committee. It should be noted not only they all signed 
off, but of course this Senator, as chairman, is just as vitally 
concerned about the SBA and its programs and success as any. It was 
only last week we had Erskine Bowles, the Administrator of the Small 
Business Administration, before the Appropriations Subcommittee, which 
I chair, for Small Business Administration. So we look not just at 
authorizing legislation and programs from time to time, but every 
dollar spent and the success of those dollars expended, and where we 
might improve on the administration.
  I might also add, we have one of the most outstanding Administrators 
we have ever had in the Small Business Administration in Erskine 
Bowles. So, yes, this bill is signed off by SBA. They have worked and 
helped fashion the particular language.
  So, as I understand it, there might be some other comments coming, 
but if there are any amendments, I hope they will come to the floor. I 
do not know what the strategy is here, being a Monday and not full 
attendance, of course, where they say there are not to be any 
rollcalls.
  But tomorrow we will be courteous, we will be considerate and any 
amendment that comes up we will give time for those to be heard on 
their amendment but not just to prolong debate, just to stretch out the 
final approval of this particular measure because this measure has been 
waiting its turn long and long enough. I hope it is not being used as 
an instrument to debate foreign or alien considerations, such as the 
GATT agreement and what they did in December over in Geneva.
  I know some have misgivings about GATT. That is fine business. I do, 
too. Let us take that up when the GATT agreement is presented before 
the Finance Committee and later on before the Senate itself.
  Mr. President, I yield the floor.
  Mr. BAUCUS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Montana is recognized.
  Mr. BAUCUS. Mr. President, might I ask, what is the pending business?
  The PRESIDING OFFICER. We are working on S. 4, a modified committee 
amendment to S. 4.
  Mr. BAUCUS. Mr. President, I ask unanimous consent to speak 5 minutes 
as in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered. The 
Senator is recognized for 5 minutes.

                          ____________________