[Congressional Record Volume 140, Number 30 (Thursday, March 17, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 17, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                  NATIONAL COMPETITIVENESS ACT OF 1994

  The text of the bill H.R. 820, entitled ``An Act to amend the 
Stevenson-Wydler Technology Innovation Act of 1980 to enhance 
manufacturing technology development and transfer, to authorize 
appropriations for the Technology Administration of the Department of 
Commerce, including the National Institute of Standards and Technology, 
and for other purposes,'' as passed by the Senate on March 16, 1994, is 
as follows:

                                H.R. 820

                      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.
Sec. 105. Overall authorization limit.

                        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 the 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.
Sec. 307. Reports on foreign industrial espionage.

          TITLE IV--ADDITIONAL COMMERCE DEPARTMENT PROVISIONS

Sec. 401. Department of Commerce Technology Advisory Board.
Sec. 402. International standardization.
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--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

Sec. 601. Short title.
Sec. 602. Findings and purpose.
Sec. 603. Information technology applications.
Sec. 604. Applications for education and libraries.
Sec. 605. Applications for 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 for 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.

             TITLE VIII--PRIVATE CARRIAGE OF URGENT LETTERS

Sec. 801. Private carriage of urgent letters.

               TITLE IX--REGULATORY FLEXIBILITY ANALYSIS

Sec. 901. Definitions.
Sec. 902. Initial regulatory flexibility analysis.
Sec. 903. Final regulatory flexibility analysis.
Sec. 904. Judicial review.

                      TITLE X--COUNTERINTELLIGENCE

Sec. 1001. Short title.
Sec. 1002. Amendment to the National Security Act of 1947.
Sec. 1003. Protection of cryptographic information.
Sec. 1004. Amendment to Right to Financial Privacy Act.
Sec. 1005. New criminal offense for the possession of espionage 
              devices.
Sec. 1006. New offense for sale or transfer to foreign governments 
              documents and other materials designated as top secret.
Sec. 1007. Lesser criminal offense for the removal of top secret 
              documents by government employees and contractors.
Sec. 1008. Jurisdiction of United States courts to try cases involving 
              espionage outside the United States.
Sec. 1009. Expansion of existing statute regarding forfeiture of 
              collateral profits of crime to additional espionage 
              offenses.
Sec. 1010. Denial of annuities or retired pay to persons convicted of 
              espionage in foreign courts involving United States 
              information.
Sec. 1011. Authorizing the FBI to obtain consumer reports on persons 
              believed to be agents of foreign powers.
Sec. 1012. To provide for rewards for information concerning espionage.
Sec. 1013. To provide a court order process for physical searches 
              undertaken for foreign intelligence purposes.

              TITLE XI--LOCAL EMPOWERMENT AND FLEXIBILITY

Sec. 1101. Short title.
Sec. 1102. Findings.
Sec. 1103. Purposes.
Sec. 1104. Definitions.
Sec. 1105. Demonstration program.
Sec. 1106. Provision of Federal assistance in accordance with approved 
              local flexibility plan.
Sec. 1107. Application for approval of local flexibility plan.
Sec. 1108. Review and approval of local flexibility plans.
Sec. 1109. Implementation of approved local flexibility plans; waiver 
              of requirements.
Sec. 1110. Community advisory committees.
Sec. 1111. Technical and other assistance.
Sec. 1112. Community enterprise board.
Sec. 1113. Termination and repeal; report.

                          TITLE XII--HERO ACT

Sec. 1201. Short title.
Sec. 1202. Findings.
Sec. 1203. Citations.

                  TITLE XIII--MISCELLANEOUS PROVISIONS

Sec. 1301. Economic and Employment Impact Act.
Sec. 1302. Urban university business initiative grants.
Sec. 1303. Prohibition on solicitation of campaign contributions by 
              persons awarding contracts.

     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 advanced 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.

     SEC. 105. OVERALL AUTHORIZATION LIMIT.

       Notwithstanding any other provision of this Act, the total 
     amount authorized to be appropriated under this Act shall not 
     exceed $1,900,000,000.
                        TITLE II--MANUFACTURING

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Manufacturing Technology 
     and Extension Act of 1994''.
           Subtitle A--Manufacturing 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 
     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, 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 to 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, and 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 can work together to 
     advance quality management programs and to share and, as 
     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 expand 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 Baldrige 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 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 advanced 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. 278l(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. 278l 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, known 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 subsection.''.

     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) strike paragraph (1)(B)(ii) and replace with: 
     ``participation in such joint ventures, if the Secretary, 
     acting through the Director, determines participation to be 
     appropriate and if the joint venture as a whole agrees to pay 
     at least half of the total costs of such joint ventures 
     during the participation period, which shall not extend 
     beyond 5 years,'';
       (C) in paragraph (2) by striking ``and cooperative 
     agreements'' and inserting in lieu thereof ``cooperative 
     agreements, and, subject to the last sentence of this 
     subsection, other transactions''; 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 ``$2,000,000''; and 
     inserting in lieu thereof ``$3,000,000''.
       (4) by adding at the end the following new subsection: 
     ``(1) Notwithstanding subsections (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 period 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 amendments made by sections 303 (a) and (b) shall 
     be effective only with respect to assistance for which 
     solicitations for proposals are made after the date of 
     enactment of this Act or October 1, 1994, whichever occurs 
     later.
       (c) Amendments To the American Technology Preeminence Act 
     of 1991.--(1) 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 subparagraph.''.
       (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, 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 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. FINDINGS 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 promising 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.
       ``(3) 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 facilitate 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 loans directly or in 
     coinvestments with other investors. The type of financing to 
     be provided 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 utilizes 
     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 services 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 or 
     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 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 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.''.

     SEC. 307. REPORTS ON FOREIGN INDUSTRIAL ESPIONAGE.

       (a) In General.--(1) In order to assist Congress in its 
     oversight functions with respect to this Act and to improve 
     the awareness of United States industry of foreign industrial 
     espionage and the ability of such industry to protect against 
     such espionage, the President shall submit to Congress a 
     report that describes, as of the time of the report, the 
     following:
       (A) The respective policy functions and operational roles 
     of the agencies of the executive branch of the Federal 
     Government in identifying and countering threats to United 
     States industry of foreign industrial espionage, including 
     the manner in which such functions and roles are coordinated.
       (B) The means by which the Federal Government communicates 
     information on such threats, and on methods to protect 
     against such threats, to United States industry in general 
     and to United States companies known to be targets of foreign 
     industrial espionage.
       (C) The specific measures that are being or could be 
     undertaken in order to improve the activities referred to in 
     subparagraphs (A) and (B), including proposals for any 
     modifications of law necessary to facilitate the undertaking 
     of such activities.
       (D) The threat to United States industry of foreign 
     industrial espionage and any trends in that threat, 
     including--
       (i) the number and identity of the foreign governments 
     conducting foreign industrial espionage;
       (ii) the industrial sectors and types of information and 
     technology targeted by such espionage; and
       (iii) the methods used to conduct such espionage.
       (2) The President shall submit the report required under 
     this subsection not later than 6 months after the date of the 
     enactment of this Act.
       (b) Annual Update.--Not later than 1 year after the date 
     referred to in paragraph (2) of subsection (a), and on the 
     expiration of each year thereafter, the President shall 
     submit to Congress a report updating the information referred 
     to in paragraph (1)(D) of that subsection.
       (c) Form of Reports.--To the maximum extent practicable, 
     the reports referred to in subsections (a) and (b) shall be 
     submitted in an unclassified form, but may be accompanied by 
     a classified appendix.
       (d) Report under Defense Production Act.--Section 
     721(k)(1)(B) of the Defense Production Act of 1950 (50 U.S.C. 
     App. 2170(k)(1)(B)) is amended by inserting ``or directly 
     assisted'' after ``directed''.
       (e) Definition.--For the purposes of this section, 
     ``foreign industrial espionage'' means industrial espionage 
     conducted by a foreign government or by a foreign company 
     with direct assistance of a foreign government against a 
     private United States company and aimed at obtaining 
     commercial secrets.
          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 of 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 
     organizations; and
       ``(G) financial organizations; 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 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.
       ``(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 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.''.

     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) Restrictions.--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 
     subcategory 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 Purposes.--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, 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, 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.
       (f) 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
       (4) 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 
     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 
     depository 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 extent 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 
     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 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 procurement 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 of 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 of 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) Alternative 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 characteristics 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.''.
             TITLE VIII--PRIVATE CARRIAGE OF URGENT LETTERS

     SEC. 801. PRIVATE CARRIAGE OF URGENT LETTERS.

       It is the sense of the Congress that the United States 
     Postal Service, in the administration of chapter 6 of title 
     39, United States Code, shall suspend its audits by the 
     Postal Inspection Service of private businesses or 
     individuals who use private express for the private carriage 
     of any letter which such business or individual determines is 
     urgent, until the Congress receives and considers a report by 
     the General Accounting Office regarding the potential 
     financial impact on the Postal Service of permanently 
     suspending enforcement of chapter 6, of title 39, United 
     States Code.
               TITLE IX--REGULATORY FLEXIBILITY ANALYSIS

     SEC. 901. DEFINITIONS.

       Section 601 of title 5, United States Code is amended--
       (1) in paragraph (5) by striking out ``and'' at the end 
     thereof;
       (2) in paragraph (6) by striking out the period and 
     inserting in lieu thereof a semicolon and ``and''; and
       (3) by adding at the end thereof the following new 
     paragraph:
       ``(7) the term `impact' means effects of a proposed or 
     final rule which an agency can anticipate at the time of 
     publication, and includes those effects which are directly 
     and indirectly imposed by the proposed or final rule and are 
     beneficial and negative.''.

     SAC. 902. INITIAL REGULATORY FLEXIBILITY ANALYSIS.

       Section 603 of title 5, United States Code, is amended--
       (1) in subsection (a)--
       (A) in the first sentence by inserting ``as defined under 
     section 601(2)'' after ``any proposed rule''; and
       (B) in the second sentence by striking out ``the impact'' 
     and inserting thereof ``both the direct and indirect 
     impacts'';
       (2) in subsection (b)(3) by striking out ``apply'' and 
     inserting in lieu thereof ``directly apply and an estimate of 
     the number of small entities to which the rule will 
     indirectly apply''; and
       (3) in subsection (c) in the first sentence by inserting 
     before the period ``either directly or indirectly effected''.

     SEC. 903. FINAL REGULATORY FLEXIBILITY ANALYSIS.

       Section 604(a) of title 5, United States Code, is amended 
     in the first sentence by striking out ``under section 553 of 
     this title, after being required by that section or any other 
     law to publish a general notice of proposed rulemaking'' and 
     inserting in lieu thereof ``as defined under section 
     610(2)''.

     SEC. 904. JUDICIAL REVIEW.

       Section 611(b) of title 5, United States Code, is repealed.
                     TITLE X--COUNTER INTELLIGENCE

     SEC. 1001. SHORT TITLE.

       This title may be cited as the ``Counterintelligence 
     Improvements Act of 1994''.

     SEC. 1002. AMENDMENT TO THE NATIONAL SECURITY ACT OF 1947.

       The National Security Act of 1947 (50 U.S.C. 401 et seq.) 
     is amended by inserting at the end thereof the following new 
     title:

             ``TITLE VIII--ACCESS TO TOP SECRET INFORMATION


           ``Eligibility for Access to Top Secret Information

       ``Sec. 801. (a) The President and Vice President, Members 
     of the Congress, Justices of the Supreme Court and judges of 
     other courts of the United States established pursuant to 
     Article III of the Constitution, shall, by virtue of their 
     elected or appointed positions, be entitled to access to Top 
     Secret information needed for the performance of their 
     governmental functions without regard to the other provisions 
     of this title.
       ``(b) Among employees of the United States Government, 
     access to Top Secret information shall be limited to 
     employees;
       ``(1) who have been granted access to such information 
     pursuant to this title;
       ``(2) who are citizens of the United States who require 
     routine access to such information for the performance of 
     official governmental functions; and
       ``(3) who have been determined to be trustworthy based upon 
     a background investigation and appropriate reinvestigations 
     and have otherwise satisfied the requirements of section 802, 
     below.
       ``(c) Access to Top Secret information by persons other 
     than those identified in subsections (a) and (b) shall be 
     permitted only in accordance with the regulations issued by 
     the President pursuant to section 802 below.


                        Implementing Regulations

       ``Sec. 802. The President shall, within 180 days of 
     enactment of this title, issue regulations to implement this 
     title which shall be binding upon all departments, agencies, 
     and offices of the Executive branch. These regulations shall, 
     at a minimum provide that--
       (A) no employee of the United States Government shall be 
     given access to Top Secret information owned, originated or 
     possessed by United States, after the effective date of this 
     title, by any department, agency, or entity of the United 
     States Government unless such person has been subject to an 
     appropriate background investigation and has--
       ``(1) provided consent to the investigative agency 
     responsible for conducting the security investigation of such 
     person, during the initial background investigation and for 
     such times as access to such information is maintained, and 
     for 5 years thereafter, permitting access to--
       (a) financial records concerning the subject pursuant to 
     section 1104 of the Right to Financial Privacy Act of 1978;
       ``(b) consumer reports concerning the subject pursuant to 
     section 1681b of the Consumer Credit Protection Act; and
       ``(c) records maintained by commercial entities within the 
     United States pertaining to any travel by the subject outside 
     the United States: Provided, That--

       ``(i) no information may be requested by an authorized 
     investigative agency pursuant to this section for any purpose 
     other than making a security determination;
       ``(ii) where the person concerned no longer has access to 
     Top Secret information, no information may be requested by an 
     authorized investigative agency pursuant to this section 
     unless such agency has reasonable grounds to believe, based 
     upon specific and articulable facts available to it, that 
     such person may pose a threat to the continued security of 
     the information to which he or she had previously had access; 
     and
       ``(iii) any information obtained by an authorized 
     investigative agency pursuant to this section shall not be 
     disseminated to any other department, agency, or entity for 
     any purpose other than for making a security determination, 
     or for foreign counterintelligence or law enforcement 
     purposes;

       ``(2) agreed, during the period of his or her access, to 
     report to the department, agency, or entity granting such 
     access in accordance with applicable regulations, any travel 
     to foreign countries which has not been authorized as part of 
     the subject's official duties;
       ``(3) agreed to report to the Federal Bureau of 
     Investigation, or to appropriate investigative authorities of 
     the department, agency, or entity concerned, any unauthorized 
     contacts with persons known to be foreign nationals or 
     persons representing foreign nationals, where an effort to 
     acquire classified information is made by the foreign 
     national, or where such contacts appear intended for this 
     purpose. For purposes of this subsection, the term 
     `unauthorized contacts' does not include contacts made within 
     the context of an authorized diplomatic relationship. Failure 
     by the employee to comply with any of the requirements of 
     this subsection shall constitute grounds for denial or 
     termination of access to the Top Secret information 
     concerned.
       ``(B) all employees granted access to Top Secret 
     information pursuant to this subsection shall also be subject 
     to--
       ``(1) additional background investigations by appropriate 
     governmental authorities during the period of access at no 
     less frequent interval than every 5 years, except that any 
     failure to satisfy this requirement that is not solely 
     attributable to the subject of the investigation shall not 
     result in a loss or denial of access; and
       ``(2) investigation by appropriate governmental authority 
     at any time during the period of access to ascertain whether 
     such persons continue to meet the requirements for access.
       ``(C) access to Top Secret information by categories of 
     persons who do not meet the requirements of subsections (A) 
     and (B) of this section may be permitted only where the 
     President, or officials designated by the President for this 
     purpose, determine that such access is essential to protect 
     or further the national security interests of the United 
     States.
       ``(D) a single office within the Executive branch shall be 
     designated to monitor the implementation and operation of 
     this title within the Executive branch. This office shall 
     submit an annual report to the President and appropriate 
     committees of the Congress, describing the operation of this 
     title and recommending needed improvements. A copy of the 
     regulations implementing this title shall be provided to the 
     Select Committee on Intelligence of the Senate and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives thirty days prior to their effective date.


                     ``waivers for individual cases

       ``Sec. 803. In extraordinary circumstances, when essential 
     to protect or further the national security interests of the 
     United States, the President (or officials designated by the 
     President for this purpose) may waive the provisions of this 
     title, or the provisions of the regulations issued pursuant 
     to section 802, above, in individual cases involving persons 
     who are citizens of the United States or are persons admitted 
     into the United States for permanent residence: Provided, 
     That all such waivers shall be made a matter of record and 
     reported to the office designated pursuant to section 802(D), 
     above, and shall be available for review by the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee of the House of Representatives.


                             ``Definitions

       ``Sec. 804. For purposes of this title--
       ``(a) the term `national security' refers to the national 
     defense and foreign relations of the United States;
       ``(b) the phrases `information classified in the interest 
     of national security' or `classified information' means any 
     information originated by or on behalf of the United States 
     Government, the unauthorized disclosure of which would cause 
     damage to the national security, which has been marked and is 
     controlled pursuant to the Executive Order 12356 of April 2, 
     1982, or successor orders, or the Atomic Energy Act of 1954;
       ``(c) the term `Top Secret information' means information 
     classified in the interests of national security, the 
     unauthorized disclosure of which would cause exceptionally 
     grave damage to the national security;
       ``(d) the term `employee' includes any person who receives 
     a salary or compensation of any kind from the United States 
     Government, is a contractor of the United States Government, 
     is an unpaid consultant of the United States Government, or 
     otherwise acts for or on behalf of the United States 
     Government, but does not include the President or Vice 
     President of the United States, Members of the Congress of 
     the United States, Justices of the Supreme Court or judges of 
     other federal courts established pursuant to Article III of 
     the Constitution; and
       ``(e) the term ``authorized investigative agency'' means an 
     agency authorized by law or regulation to conduct 
     investigations of persons who are proposed for access to Top 
     Secret information to ascertain whether such persons satisfy 
     the criteria for obtaining and retaining access to such 
     information.


                            ``Effective Date

       ``Sec. 805. This title shall take effect 180 days after the 
     date of its enactment.''.

     SEC. 1003. PROTECTION OF CRYPTOGRAPHIC INFORMATION.

       The National Security Act of 1947 (50 U.S.C. 401 et seq.), 
     as amended by section 1002, is further amended by inserting 
     at the end the following new title:

          ``TITLE IX--PROTECTION OF CRYPTOGRAPHIC INFORMATION

       ``Sec. 901. (a) Requirements for Access to Cryptographic 
     Information.--(1) Any employee of a department or agency 
     within the Executive branch who is granted access to 
     classified cryptographic information or routine, recurring 
     access to any space in which classified cryptographic key is 
     produced or processed, or is assigned responsibilities as a 
     custodian of classified cryptographic key, shall, as a 
     condition of receiving such access, or being assigned such 
     responsibilities, and at a minimum:
       ``(A) meet the requirements applicable to persons having 
     access to Top Secret information, as defined in subsection 
     804(c) of this Act, (as added by section 1002 of the 
     Counterintelligence Improvements Act of 1994); and
       ``(B) be subject to periodic polygraph examinations 
     conducted by appropriate governmental authorities, limited in 
     scope to questions of a counterintelligence nature, during 
     the period of access.
       ``(2) Failure to submit to an examination required under 
     paragraph (1) shall be grounds for removal from access to 
     cryptographic information or spaces.
       ``(3) No person shall be removed from access to 
     cryptographic information or spaces based solely upon the 
     interpretation of the results produced by a polygraph 
     instrument, measuring physiological resources, unless, after 
     further investigation, the head of the department or agency 
     concerned determines the risk to the national security in 
     permitting such access to be so potentially grave that access 
     must nonetheless be denied.
       ``(b) Definitions.--For purposes of this section--
       ``(1) the term `classified cryptographic information' means 
     any information classified by the United States Government 
     pursuant to law or Executive order concerning the details of 
     (A) the nature, preparation, or use of any code, cipher, or 
     cryptographic system of the United States; or (B) the design, 
     construction, use, maintenance, or repair of any 
     cryptographic equipment; Provided, however, That the term 
     does not include information concerning the use of 
     cryptographic systems or equipment required for personal or 
     office use;
       ``(2) the phrase `custodian of classified cryptographic 
     key' means positions that require access to classified 
     cryptographic key beyond that required to use or operate 
     cryptographic equipment for personal or office use, future 
     editions of classified cryptographic key, or classified 
     cryptographic key used for multiple devices;
       ``(3) the term `classified cryptographic key' means any 
     information (usually a sequence of random binary digits), in 
     any form, classified by the United States Government pursuant 
     to law or Executive order that is used to set up and 
     periodically change the operations performed by any 
     cryptographic equipment;
       ``(4) the term `cryptographic equipment' means any device, 
     apparatus or appliance used, or prepared, or planned for use 
     by the United States for the purpose of authenticating 
     communications or disguising or concealing the contents, 
     significance, or meanings of communications;
       ``(5) the term `employee' includes any person who receives 
     a salary or compensation of any kind from a department or 
     agency of the Executive branch, or is a contractor or unpaid 
     consultant of such department or agency;
       ``(6) the term `head of a department or agency' refers to 
     the highest official who exercises supervisory control over 
     the employee concerned, and does not include any intermediate 
     supervisory officials who may otherwise qualify as heads of 
     agencies within departments; and
       ``(7) the phrase `questions of a counterintelligence 
     nature' means questions specified to the subject in advance 
     of a polygraph examination solely to ascertain whether the 
     subject is engaged in, or planning, espionage against the 
     United States on behalf of a foreign government or knows 
     persons who are so engaged.
       ``Sec. 902. Implementing Regulations.--The President shall, 
     within 180 days of the date of enactment of this title, 
     promulgate regulations to implement the provisions of this 
     title. The President shall provide copies of such regulations 
     to the Select Committee on Intelligence of the Senate and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives.''.

     SEC. 1004. AMENDMENT TO RIGHT TO FINANCIAL PRIVACY ACT.

       Section 1104 of the Right to Financial Privacy Act of 1978 
     (12 U.S.C. 3404) is amended by adding at the end thereof the 
     following new subsection:
       ``(d)(1) Notwithstanding the provisions of subsection (a), 
     a customer who is the subject of a personnel security 
     investigation conducted by an authorized investigative agency 
     of the U.S. Government as a condition of being granted or 
     maintaining access to Top Secret information, as defined by 
     section 804(c) of the National Security Act of 1947 (as added 
     by section 1002 of the Counterintelligence Improvements Act 
     of 1994), may authorize nonrevokable disclosure of all 
     financial records maintained by financial institutions for 
     the period of the customer's access to such information and 
     for up to 5 years after access to such information has been 
     terminated, by the investigative agency responsible for the 
     conduct of such investigation, for an authorized security 
     purpose.
       ``(2) Such authority shall be contained in a signed and 
     dated statement of the customer which identifies the 
     financial records which are authorized to be disclosed. Such 
     statement may also authorize the disclosure of financial 
     records of accounts opened during the period covered by the 
     consent agreement which are not identifiable at the time such 
     consent is provided. A copy of such statement shall be 
     provided by the investigative agency concerned to the 
     financial institution from which disclosure is sought, 
     together with the certification required pursuant to section 
     1103(b) (12 U.S.C. 3403(b)).
       ``(3) The rights of the customer established by subsection 
     (c), above, shall pertain to any disclosures made pursuant to 
     this subsection.
       ``(4) On an annual basis, the office designated by 
     President pursuant to section 802(D) of the National Security 
     Act of 1947 (as added by section 1002 of the 
     Counterintelligence Improvements Act of 1994), shall fully 
     inform the Permanent Select Committee on Intelligence of the 
     House of Representatives and the Select Committee on 
     Intelligence of the Senate concerning the number of requests 
     for financial records made pursuant to this section.''.

     SEC. 1005. NEW CRIMINAL OFFENSE FOR THE POSSESSION OF 
                   ESPIONAGE DEVICES.

       (a) In General.--Chapter 37 of title 18, United States 
     Code, is amended by inserting at the end thereof the 
     following new section:


                   ``Possession of Espionage Devices

       ``Sec. 799a. Whoever knowingly maintains possession of any 
     electronic, mechanical, or other device or equipment the 
     design and capability of which renders it primarily useful 
     for the purpose of surreptitiously collecting or 
     communicating information, with the intent of utilizing such 
     device or equipment to undertake actions which would violate 
     section 793, 794, 794a (as added by section 1006 of the 
     Counterintelligence Improvements Act of 1994), or 798 of this 
     title, or section 783(b) of title 50, United States Code, 
     shall be fined not more than $10,000 or imprisoned not more 
     than 5 years, or both.''.
       (b) Amendments to table of Sections.--The table of sections 
     for chapter 37 of title 18, United States Code, is amended by 
     adding at the end thereof the following new item:

``799a. Possession of espionage devices.''.

     SEC. 1006. NEW OFFENSE FOR SALE OR TRANSFER TO FOREIGN 
                   GOVERNMENTS DOCUMENTS AND OTHER MATERIALS 
                   DESIGNATED AS TOP SECRET.

       (a) In general.--Chapter 37 of title 18, United States 
     Code, is amended by inserting after section 794 the following 
     new section:


  ``sale or transfer of documents or materials marked as `top secret'

       ``Sec. 794a. (a)(1) No person shall knowingly sell or 
     otherwise transfer for any valuable consideration to any 
     person whom he knows or has reason to believe to be an agent 
     or representative of a foreign government--
       ``(A) any document, writing, code book, sketch, photograph, 
     map, model, instrument, equipment, electronic storage media, 
     or other material, or portion thereof, knowing that it is 
     marked or otherwise designated in any manner, pursuant to 
     applicable law and Executive order, as `Top Secret', or
       ``(B) any such document, writing, code book, sketch, 
     photograph, map, model, instrument, equipment, electronic 
     storage media, or other material, or portion thereof, which 
     has had such marking or designation removed without authority 
     and the person making the sale or transfer is aware of such 
     removal.
       ``(2) Paragraph (1) shall not be deemed to be violated by a 
     person who makes such transfer pursuant to applicable law or 
     executive branch authority.
       ``(b) In any prosecution under this section, whether or not 
     the information or material in question has been properly 
     marked or designated as ``TOP SECRET'' pursuant to applicable 
     law or Executive order shall not be an element of the 
     offense: Provided, however, That it shall be a defense to any 
     prosecution under this section that the information or 
     document in question has been officially released to the 
     public by an authorized representative of the United States 
     prior to the sale or transfer in question.
       ``(c) Violation of this section shall be punishable by 
     imprisonment for a maximum of 15 years.''.
       (b) Amendments to Table of Sections.--The table of sections 
     for chapter 37 of title 18, United States Code, is amended by 
     inserting after the item relating to section 794 the 
     following new item:

``794a. Sale or transfer of documents or materials marked as `Top 
              Secret'.''

     SEC. 1007. LESSER CRIMINAL OFFENSE FOR THE REMOVAL OF TOP 
                   SECRET DOCUMENTS BY GOVERNMENT EMPLOYEES AND 
                   CONTRACTORS.

       (a) In General.--Chapter 93 of title 18, United States 
     Code, is amended by inserting at the end thereof the 
     following new section:


     ``removal and retention of `top secret' documents or material

       ``Sec. 1924. Whoever, being an officer, employee, 
     contractor or consultant, of the United States, and having, 
     by virtue of his office, employment, position, or contract, 
     becomes possessed of documents or materials classified at the 
     level of `Top Secret' pursuant to applicable law or Executive 
     order, knowingly removes such documents or materials without 
     authority and retains such documents or materials at an 
     unauthorized location shall be fined not more than $1,000, or 
     imprisoned for not more than one year, or both.''.
       (b) Amendment to Table of Sections.--The table of sections 
     for chapter 93 of title 18, United States Code, is amended by 
     adding at the end thereof the following new item:

``1924. Removal of `Top Secret' documents or material.''

     SEC. 1008. JURISDICTION OF UNITED STATES COURTS TO TRY CASES 
                   INVOLVING ESPIONAGE OUTSIDE THE UNITED STATES.

       (a) Chapter 211 of title 18 of the United States Code is 
     amended by adding a new section 3239 as follows:

     ``Sec. 3239. Jurisdiction for espionage and related offenses

       ``The trial for any offense involving a violation of--
       ``(a) section 793, 794, 794a (as added by section 1006 of 
     the Counterintelligence Improvements Act of 1994), 798, 798a 
     (as added by section 1005 of the Counterintelligence 
     Improvements Act of 1994), or subsection 1030(a)(1) of this 
     title;
       ``(b) section 601 of the National Security Act of 1947 as 
     added by the Intelligence Identities Protection Act of 1982 
     (50 U.S.C. 421); or
       ``(c) subsections 4(b) or 4(c) of the Subversive Activities 
     Control Act of 1950 (U.S.C. 783(b) or 783(c));

     begun or committed upon the high seas or elsewhere out of the 
     jurisdiction of any particular state or district, may be 
     prosecuted in the District of Columbia, or in the Eastern 
     District of Virginia, or in any other district authorized by 
     law.''.
       (b) The chapter analysis for chapter 211 of title 18 of the 
     United States Code is amended by striking out

``[3239. Repealed.]''

     and inserting in lieu thereof:

``3239. Jurisdiction for espionage and related offenses.''

     SEC. 1009. EXPANSION OF EXISTING STATUTE REGARDING FORFEITURE 
                   OF COLLATERAL PROFITS OF CRIME TO ADDITIONAL 
                   ESPIONAGE OFFENSES.

       Section 3681 of title 18, United States Code, is amended--
       (1) in subsection (a), by striking out ``section 794 of 
     this title'' and inserting in lieu thereof ``sections 793, 
     794, 794a (as added by section 1006 of the 
     Counterintelligence Improvements Act of 1994), 798, and 799a 
     (as added by section 1005 of the Counterintelligence 
     Improvements Act of 1994) of this title and section 783 of 
     title 50, United States Code''; and
       (2) by adding at the end thereof the following new 
     subsection:
       ``(e) For purposes of this section, convictions pursuant to 
     military courts-martial for offenses comparable to violations 
     of sections 793, 794, 794a (as added by section 1006 of the 
     Counterintelligence Improvements Act of 1994), 798, and 799a 
     (as added by section 1005 of the Counterintelligence 
     Improvements Act of 1994) of this title, or a violation of 
     section 783 of title 50, or convictions by foreign courts for 
     offenses which, if perpetrated within the United States, 
     would constitute offenses under sections 793, 794, 794a (as 
     added by section 1006 of the Counterintelligence Improvements 
     Act of 1994), 798, and 799a (as added by section 1005 of the 
     Counterintelligence Improvements Act of 1994) of this title, 
     or a violation of section 783 of title 50 shall be considered 
     as convictions for which actions may be ordered pursuant to 
     this section.''.

     SEC. 1010. DENIAL OF ANNUITIES OR RETIRED PAY TO PERSONS 
                   CONVICTED OF ESPIONAGE IN FOREIGN COURTS 
                   INVOLVING UNITED STATES INFORMATION.

       Section 8312 of title 5, United States Code, is amended by 
     adding at the end thereof the following new subsection:
       ``(d) For purposes of subsections (b)(1) and (c)(1), an 
     offense within the meaning of such subsections is established 
     if the Attorney General certifies to the agency employing or 
     formerly employing the person concerned--
       ``(i) that an individual subject to this chapter has been 
     convicted by an impartial court of appropriate jurisdiction 
     within a foreign country in circumstances in which the 
     conduct violates the provisions of law enumerated in 
     subsections (b)(1) and (c)(1), or would violate such 
     provisions, had such conduct taken place within the United 
     States, and that such conviction is not being appealed or 
     that final action has been taken on such appeal;
       ``(2) that such conviction was obtained in accordance with 
     procedures that provided the defendant due process rights 
     comparable to such rights provided by the United States 
     Constitution, and such conviction was based upon evidence 
     which would have been admissible in the courts of the United 
     States; and
       ``(3) that such conviction occurred after the date of 
     enactment of this subsection:

     Provided, That any certification made pursuant to this 
     paragraph shall be subject to review by the United States 
     Court of Claims based upon the application of the individual 
     concerned, or his or her attorney, alleging that any of the 
     conditions set forth in subsections (1), (2), (3), herein, as 
     certified by the Attorney General, have not been satisfied in 
     his or her particular circumstances. Should the court 
     determine that any of these conditions has not been satisfied 
     in such case, the court shall order any annuity or retirement 
     benefit to which the person concerned is entitled to be 
     restored and shall order that any payments which may have 
     been previously denied or withheld to be paid by the 
     department or agency concerned.

     SEC. 1011. AUTHORIZING THE FBI TO OBTAIN CONSUMER REPORTS ON 
                   PERSONS BELIEVED TO BE AGENTS OF FOREIGN 
                   POWERS.

       Section 608 of the Consumer Credit Protection Act (15 
     U.S.C. 1681f) is amended--
       (1) by inserting ``(a)'' before ``Notwithstanding''; and
       (2) by inserting at the end thereof the following new 
     subsections:
       ``(b) Notwithstanding the provisions of section 604, a 
     consumer reporting agency shall, upon request, furnish a 
     consumer report to the Federal Bureau of Investigation, if 
     the Director of the Federal Bureau of Investigation, or the 
     Director's designee, certifies in writing to the consumer 
     reporting agency that such records are sought in connection 
     with an authorized foreign counterintelligence investigation 
     and that there are specific and articulable facts giving 
     reason to believe that the person to whom the requested 
     consumer report relates is an agent of a foreign power, as 
     defined in section 101 of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1801).
       ``(c) Notwithstanding the provisions of section 604, a 
     consumer reporting agency shall furnish identifying 
     information respecting any consumer, limited to name, 
     address, former addresses, places of employment, or former 
     places of employment, to a representative of the Federal 
     Bureau of Investigation when presented with a written request 
     signed by the Director of the Federal Bureau of 
     Investigation, or the Director's designee, stating that the 
     information is necessary to the conduct of an authorized 
     foreign counterintelligence investigation.
       ``(d) No consumer reporting agency, or officer, employee, 
     or agent of such institution shall disclose to any person 
     that the Federal Bureau of Investigation has sought or 
     obtained a consumer report or identifying information 
     respecting any consumer under this section.
       ``(e) On an annual basis the Director of the Federal Bureau 
     of Investigation shall fully inform the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate concerning 
     all requests made under subsections (b) and (c).''.

     SEC. 1012. TO PROVIDE FOR REWARDS FOR INFORMATION CONCERNING 
                   ESPIONAGE.

       (a) In General.--Chapter 204 of title 18, United States 
     Code, is amended--
       (1) by inserting at the end of the chapter heading ``AND 
     ESPIONAGE'';
       (2) in section 3071, by inserting ``(a)'' immediately 
     before ``With respect to'';
       (3) in section 3071, adding at the end thereof the 
     following new subsection:
       ``(b) With respect to acts of espionage involving or 
     directed at United States information classified in the 
     interest of national security, the Attorney General may 
     reward any individual who furnishes information--
       ``(1) leading to the arrest or conviction, in any country, 
     of any individual or individuals for commission of an act of 
     espionage against the United States;
       ``(2) leading to the arrest or conviction, in any country, 
     of any individual or individuals for conspiring or attempting 
     to commit an act of espionage against the United States; or
       ``(3) leading to the prevention or frustration of an act of 
     espionage against the United States.''.
       (b) Amount of Rewards.--Section 3072 of title 18, United 
     States Code, is amended by striking out ``$500,000'' and 
     inserting in lieu thereof ``$1,000,000''.
       (c) Definitions.--Section 3077 of title 18, United States 
     Code, is amended by inserting at the end thereof the 
     following new paragraphs:
       ``(8) `act of espionage' means an activity that is a 
     violation of sections 794, 794a (as added by section 1006 of 
     the Counterintelligence Improvements Act of 1994), 798, or 
     799a (as added by section 1005 of the Counterintelligence 
     Improvements Act of 1994) of this title or section 783 of 
     title 50, United States Code.
       ``(9) `United States information classified in the 
     interests of national security' means information originated, 
     owned, or possessed by the United States Government 
     concerning the national defense and foreign relations of the 
     United States that has been determined pursuant to law or 
     Executive order to require protection against unauthorized 
     disclosure and that has been so designated.''.

     SEC. 1013. TO PROVIDE A COURT ORDER PROCESS FOR PHYSICAL 
                   SEARCHES UNDERTAKEN FOR FOREIGN INTELLIGENCE 
                   PURPOSES.

       The Foreign Intelligence Surveillance Act of 1978 is 
     amended by inserting at the end thereof the following new 
     title:

  ``TITLE IV--PHYSICAL SEARCHES WITHIN THE UNITED STATES FOR FOREIGN 
                         INTELLIGENCE PURPOSES


 ``authorization of physical searches for foreign intelligence purposes

       ``Sec. 401. (a) Applications for a court order under this 
     title are authorized if the President has, in writing, 
     empowered the Attorney General to approve applications to the 
     Foreign Intelligence Surveillance Court, and a judge of that 
     court to whom application is made may, notwithstanding any 
     other law, grant an order, in conformity with section 403, 
     approving a physical search in the United States, for the 
     purpose of collecting foreign intelligence information of--
       ``(1) the property, information or material of a foreign 
     power as defined in section 101(a)(1), (2), and (3) of this 
     Act, or
       ``(2) the premises, property, information or material of an 
     agent of a foreign power or a foreign power as defined in 
     section 101(a)(4), (5), and (6) of this Act.
       ``(b) The Foreign Intelligence Surveillance Court shall 
     have jurisdiction to hear applications for and grant orders 
     approving a physical search for the purpose of obtaining 
     foreign intelligence information anywhere within the United 
     States under the procedures set forth in this title, except 
     that no judge shall hear the same application which has been 
     denied previously by another judge. If any judge denies an 
     application for an order authorizing a physical search under 
     this title, such judge shall provide immediately for the 
     record a written statement of each reason for his decision 
     and, on motion of the United States, the record shall be 
     transmitted, under seal, to the Court of Review.
       ``(c) The Court of Review shall have jurisdiction to review 
     the denial of any application made under this title. If such 
     court determines that the application was properly denied, 
     the Court shall immediately provide for the record a written 
     statement of each reason for its decision and, on petition of 
     the United States for a writ of certiorari, the record shall 
     be transmitted under seal to the Supreme Court, which shall 
     have jurisdiction to review such decision.
       ``(d) Judicial proceedings under this title shall be 
     concluded as expeditiously as possible. The record of 
     proceedings under this title, including applications made and 
     orders granted, shall be maintained under security measures 
     established by the Chief Justice of the United States in 
     consultation with the Attorney General and the Director of 
     Central Intelligence.


                       ``application for an order

       ``Sec. 402. (a) Each application for an order approving a 
     physical search under this title shall be made by a Federal 
     officer in writing upon oath or affirmation to a judge of the 
     Foreign Intelligence Surveillance Court. Each application 
     shall require the approval of the Attorney General based upon 
     the Attorney General's finding that it satisfied the criteria 
     and requirements for such application as set forth in this 
     title. It shall include--
       ``(1) the identity, if known, or a description of the 
     target of the search;
       ``(2) the authority conferred on the Attorney General by 
     the President of the United States and the approval of the 
     Attorney General to make the application;
       ``(3) the identity of the Federal officer making the 
     application and a detailed description of the premises or 
     property to be searched and of the information, material, or 
     property to be seized, reproduced, or altered;
       ``(4) a statement of the facts and circumstances relied 
     upon by the applicant to justify the applicant's belief 
     that--
       ``(A) the target of the physical search is a foreign power 
     or an agent of a foreign power;
       ``(B) the premises or property to be searched contains 
     foreign intelligence information;
       ``(C) the premises or property to be searched is owned, 
     used, possessed by, or is in transit to or from a foreign 
     power or an agent of a foreign power;
       ``(5) a statement of the proposed minimization procedures;
       ``(6) a statement of the manner in which the physical 
     search is to be conducted;
       ``(7) a statement of the facts concerning all previous 
     applications that have been made to any judge under this 
     title involving any of the persons, premises, or property 
     specified in the application, and the action taken on each 
     previous applications;
       ``(8) a statement of the facts concerning any search 
     described in section 406(b), below, which involves any of the 
     persons, premises, or property specified in the application; 
     and
       ``(9) a statement that the purpose of the physical search 
     is to obtain foreign intelligence information.
       ``(b) The judge may require the applicant to furnish such 
     other information as may be necessary to make the 
     determinations required by section 403.


                         ``issuance of an order

       ``Sec. 403. (a) Upon an application made pursuant to 
     section 402, the judge shall enter an ex parte order as 
     requested or as modified approving the physical search if the 
     judge finds that--
       ``(1) the President has authorized the Attorney General to 
     approve applications for physical searches for foreign 
     intelligence purposes;
       ``(2) the application has been made by a Federal officer 
     and approved by the Attorney General;
       ``(3) on the basis of the facts submitted by the applicant 
     there is probable cause to believe that--
       ``(A) the target of the physical search is a foreign power 
     or an agent of a foreign power: Provided, That no United 
     States person may be considered an agent of a foreign power 
     solely upon the basis of activities protected by the first 
     amendment to the Constitution of the United States;
       ``(B) the premises or property to be searched are owned, 
     used, possessed by, or is in transit to or from an agent of a 
     foreign power or a foreign power; and
       ``(C) physical search of such premises or property can 
     reasonably be expected to yield foreign intelligence 
     information which cannot reasonably be obtained by normal 
     investigative means; and
       ``(4) the proposed minimization procedures meet the 
     definition of minimization contained in this title; and
       ``(5) the application which has been filed contains all 
     statements required by section 402.
       ``(b) An order approving a physical search under this 
     section shall--
       ``(1) specify--
       ``(A) the Federal officer or officers authorized to conduct 
     the physical search and the identity, if known, or a 
     description of the target of the physical search;
       ``(B) the premises or property to be searched and the 
     information, material, or property to be seized, altered, or 
     reproduced;
       ``(C) the type of foreign intelligence information sought 
     to be acquired; and
       ``(D) a statement of the manner in which the physical 
     search is to be conducted and, whenever more than one 
     physical search is authorized under the order, the authorized 
     scope of each search and what minimization procedures shall 
     apply to the information acquired by each search;
       ``(2) direct--
       ``(A) that the minimization procedures be followed;
       ``(B) that, upon the request of the applicant, a specified 
     landlord, custodian, or other specified person furnish the 
     applicant forthwith all information, facilities, or 
     assistance necessary to accomplish the physical search in 
     such a manner as will protect its secrecy and produce a 
     minimum of interference with the activities of the landlord, 
     custodian, or other person; and that such landlord, custodian 
     or other person maintain under security procedures approved 
     by the Attorney General and the Director of Central 
     Intelligence any records concerning the search or the aid 
     furnished that such person wishes to retain;
       ``(C) that the physical search be undertaken within 30 days 
     of the date of the order, or, if the physical search is of 
     the property, information or material of a foreign power as 
     defined in section 101(a)(1), (2), or (3) of this Act, that 
     such search be undertaken within one year of the order; and
       ``(D) that the federal officer conducting the physical 
     search promptly report to the court the circumstances and 
     results of the physical search.
       ``(c) At any time after a physical search has been carried 
     out, the judge to whom the return has been made may assess 
     compliance with the minimization procedures by reviewing the 
     circumstances under which information concerning United 
     States persons was acquired, retained, or disseminated.
       ``(d) Application made and orders granted under this title 
     shall be retained for a period of at least ten years from the 
     date of the application.
       ``(e) Not more than 60 days after a physical search of the 
     residence of a United States person authorized by this title, 
     or such a search in the circumstances described in section 
     406(b), has been conducted, the Attorney General shall 
     provide the United States person with an inventory which 
     shall include--
       ``(1) existence or not of a court order authorizing the 
     physical search and the date of the order;
       ``(2) the date of the physical search and an identification 
     of the premises or property searched; and
       ``(3) a list of any information, material, or property 
     seized, altered, or reproduced.
       ``(f) On an ex parte showing of good cause by the Attorney 
     General to a judge of the Foreign Intelligence Surveillance 
     Court the provision of the inventory required by subsection 
     (e) may be postponed for a period not to exceed 90 days. At 
     the end of such period the provision of the inventory may, 
     upon a similar showing, be postponed indefinitely. The denial 
     of a request for such postponements may be reviewed as 
     provided in section 401.


                          ``use of information

       ``Sec. 404. (a) Information acquired from a physical search 
     conducted pursuant to this title concerning any United States 
     person may be used and disclosed by Federal officers and 
     employees without the consent of the United States person 
     only in accordance with the minimization procedures required 
     by this title. No information acquired from a physical search 
     pursuant to this title may be used or disclosed by Federal 
     officers or employees except for lawful purposes.
       ``(b) No information acquired pursuant to this title shall 
     be disclosed for law enforcement purposes unless such 
     disclosure is accompanied by a statement that such 
     information, or any information derived therefrom, may only 
     be used in a criminal proceeding with the advance 
     authorization of the Attorney General.
       ``(c) Whenever the United States intends to enter into 
     evidence or otherwise use or disclose in any trial, hearing, 
     or other proceeding in or before any court, department, 
     officer, agency, regulatory body, or other authority of the 
     United States, against an aggrieved person, any information 
     obtained or derived from a physical search of the premises or 
     property of that aggrieved person pursuant to the authority 
     of this title, the United States shall, prior to the trial, 
     hearing, or the other proceeding or at a reasonable time 
     prior to an effort to so disclose or so use that information 
     or submit it in evidence, notify the aggrieved person and the 
     court or other authority in which the information is to be 
     disclosed or used that the United States intends to so 
     disclose or so use such information.
       ``(d) Whenever any State or political subdivision thereof 
     intends to enter into evidence or otherwise use of disclose 
     in any trial, hearing, or other proceeding in or before any 
     court, department, officer, agency, regulatory body, or other 
     authority of a State or a political subdivision thereof 
     against an aggrieved person any information obtained or 
     derived from a physical search of the premises or property of 
     that aggrieved person pursuant to the authority of this 
     title, the State or political subdivision thereof shall 
     notify the aggrieved person, the court or other authority in 
     which the information is to be disclosed or used, and the 
     Attorney General that the State or political subdivision 
     thereof intends to so disclose or so use such information.
       ``(e) Any person against whom evidence obtained or derived 
     from a physical search to which he is an aggrieved person is 
     to be, or has been, introduced or otherwise used or disclosed 
     in any trial, hearing, or other proceeding in or before any 
     court, department, officer, agency, regulatory body, or other 
     authority of the United States, a State, or a political 
     subdivision thereof, may move to suppress the evidence 
     obtained or derived from such search on the grounds that--
       ``(1) the information was unlawfully acquired; or
       ``(2) the physical search was not made in conformity with 
     an order of authorization or approval.

     Such a motion shall be made before the trial, hearing, or 
     other proceeding unless there was no opportunity to make such 
     a motion or the person was not aware of the grounds of the 
     motion.
       ``(f) Whenever a court of other authority is notified 
     pursuant to subsection (c) or (d), or whenever a motion is 
     made pursuant to subsection (e), or whenever any motion or 
     request is made by an aggrieved person pursuant to any other 
     statute or rule of the United States or any State before any 
     court or other authority of the United States or any State to 
     discover or obtain applications or orders or other materials 
     relating to a physical search authorized by this title or to 
     discover, obtain, or suppress evidence or information 
     obtained or derived from a physical search authorized by this 
     title, the United States district court or, where the motion 
     is made before another authority, the United States district 
     court in the same district as the authority shall, 
     notwithstanding any other law, if the Attorney General files 
     an affidavit under oath that disclosure or an adversary 
     hearing would harm the national security of the United 
     States, review in camera and ex parte the application, order, 
     and such other materials relating to the physical search as 
     may be necessary to determine whether the physical search of 
     the aggrieved person was lawfully authorized and conducted. 
     In making this determination, the court may disclose to the 
     aggrieved person, under appropriate security procedures and 
     protective orders, portions of the application, order, or 
     other materials relating to the physical search only where 
     such disclosure is necessary to make an accurate 
     determination of the legality of the physical search.
       ``(g) If the United States district court pursuant to 
     subsection (f) determines that the physical search was not 
     lawfully authorized or conducted, it shall, in accordance 
     with the requirements of law, suppress the evidence which was 
     unlawfully obtained or derived from the physical search of 
     the aggrieved person or otherwise grant the motion of the 
     aggrieved person. If the court determines that the physical 
     search was lawfully authorized or conducted, it shall deny 
     the motion of the aggrieved person except to the extent that 
     due process requires discovery or disclosure.
       ``(h) Orders granting motions or requests under subsection 
     (g), decisions under this section that a physical search was 
     not lawfully authorized or conducted, and orders of the 
     United States district court requiring review or granting 
     disclosure of applications, orders or other materials 
     relating to the physical search shall be final orders and 
     binding upon all courts of the United States and the several 
     States except a United States court of appeals and the 
     Supreme Court.
       ``(i) The provisions of this section regarding the use or 
     disclosure of information obtained or derived from a physical 
     search shall apply to information obtained or derived from a 
     search conducted without a court order to obtain foreign 
     intelligence information which is not a physical search as 
     defined in this title solely because the existence of exigent 
     circumstances would not require a warrant for law enforcement 
     purposes.


                              ``oversight

       ``Sec. 405. (a) On a semiannual basis the Attorney General 
     shall fully inform the House Permanent Select Committee on 
     Intelligence and the Senate Select Committee on Intelligence 
     concerning all physical searches conducted pursuant to this 
     title, and all other searches, except those reported under 
     section 108 of this Act, conducted in the United States for 
     foreign intelligence purposes. On an annual basis the 
     Attorney General shall also provide to those committees a 
     report setting forth with respect to the preceding calendar 
     year--
       ``(1) the total number of applications made for orders 
     approving physical searches under this title; and
       ``(2) the total number of such orders either granted, 
     modified, or denied.
       ``(b) Whenever a search is conducted without a court order 
     to obtain foreign intelligence information which is not a 
     physical search as defined in this title solely because the 
     existence of exigent circumstances would not require a 
     warrant for law enforcement purposes, a full report of such 
     search, including a description of the exigent circumstances, 
     shall be maintained by the Attorney General. Each such report 
     shall be transmitted to the Foreign Intelligence Surveillance 
     Court promptly after the search is conducted.


                 ``authority for intelligence searches

       ``Sec. 406. (a) The procedures contained in this title 
     shall be the exclusive means by which a physical search, as 
     defined in this title, may be conducted in the United States 
     for foreign intelligence purposes, and an order issued under 
     this title authorizing a physical search shall constitute a 
     search warrant authorized by law for purposes of any other 
     law.
       ``(b) Searches conducted in the United States to collect 
     foreign intelligence information, other than physical 
     searches as defined in this title and electronic surveillance 
     as defined in this Act, and physical searches conducted in 
     the United States without a court order to collect foreign 
     intelligence information may be conducted only pursuant to 
     regulations issued by the Attorney General. Such regulations, 
     and any changes thereto, shall be provided to the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives at least 14 days prior to the taking effect. 
     Any regulations issued by the Attorney General regarding such 
     searches which were in effect as of June 1, 1990, shall be 
     deemed to be regulations required by this subsection.


                              ``penalties

       ``Sec. 407. (a) Offense.--A person is guilty of an offense 
     if he intentionally--
       ``(1) under color of law for the purpose of obtaining 
     foreign intelligence information, engages in physical search 
     within the United States except as authorized by statute; or
       ``(2) discloses or uses information obtained under color of 
     law by physical search within the United States, knowing or 
     having reason to know that the information was obtained 
     through physical search not authorized by statute, for the 
     purpose of obtaining intelligence information.
       ``(b) Defense.--It is a defense to a prosecution under 
     subsection (a) that the defendant was a law enforcement or 
     investigative officer engaged in the course of his official 
     duties and the physical search was authorized by and 
     conducted pursuant to a search warrant or court order of a 
     court of competent jurisdiction.
       ``(c) Penalty.--An offense described in this section is 
     punishable by a fine of not more than $10,000 or imprisonment 
     for not more than five years, or both.
       ``(d) Jurisdiction.--There is Federal jurisdiction over an 
     offense under this section if the person committing the 
     offense was an officer or employee of the United States at 
     the time the offense was committed.


                           ``civil liability

       ``Sec. 408. Civil Action.--An aggrieved person, other than 
     a foreign power or an agent of a foreign power, as defined in 
     section 101 (a) or (b)(1)(A), respectively, of this Act, 
     whose premises, property, information, or material has been 
     subjected to a physical search within the United States or 
     about whom information obtained by such a physical search has 
     been disclosed or used in violation of section 407 shall have 
     a cause of action against any person who committed such 
     violation and shall be entitled to recover--
       ``(a) actual damages;
       ``(b) punitive damages; and
       ``(c) reasonable attorney's fees and other investigative 
     and litigation costs reasonably incurred.


                             ``definitions

       ``Sec. 409. As used in this title:
       ``(a) The terms `foreign power,' `agent of a foreign 
     power,' `international terrorism,' `sabotage,' `foreign 
     intelligence information,' `Attorney General,' `United States 
     person,' `United States',' `person,' and `State' shall have 
     the same meaning as in Section 101 of this Act.
       ``(b) `Physical search' means any physical intrusion into 
     premises or property (including examination of the interior 
     of property by technical means) or any seizure, reproduction 
     or alteration of information, material or property, under 
     circumstances in which a person has a reasonable expectation 
     of privacy and a warrant would be required for law 
     enforcement purposes, but does not include `electronic 
     surveillance' as defined in subsection 101(f) of this Act.
       ``(c) `Minimization procedures' with respect to physical 
     search, means--
       ``(1) specific procedures, which shall be adopted by the 
     Attorney General, that are reasonably designed in light of 
     the purposes and technique of the particular physical search, 
     to minimize the acquisition and retention, and prohibit the 
     dissemination, of non-publicly available information 
     concerning unconsenting United States persons consistent with 
     the need of the United States persons consistent with the 
     need of the United States to obtain, produce, and disseminate 
     foreign intelligence information;
       ``(2) procedures that require that non-publicly available 
     information, which is not foreign intelligence information, 
     as defined in subsection 101(e)(1) of this Act, shall not be 
     disseminated in a manner that identifies any United States 
     person, without such person's consent, unless such person's 
     identity is necessary to understand such foreign intelligence 
     information or assess its importance; and
       ``(3) notwithstanding paragraphs (1) and (2), procedures 
     that allow for the retention and dissemination of information 
     that is evidence of a crime which has been, is being, or is 
     about to be committed and that is to be retained or 
     disseminated for law enforcement purposes.''
       ``(d) `Aggrieved person' means a person whose premises, 
     property, information, or material is the target of physical 
     search or any other person whose premises, property, 
     information, or material was subject to physical search.
       ``(e) `Foreign Intelligence Surveillance Court' means the 
     court established by section 103(a) of this Act.
       ``(f) `Court of Review' means the court established by 
     section 103(b) of this Act.


                            ``effective date

       ``Sec. 410. The provisions of this title shall become 
     effective 90 days after the date of enactment of this title, 
     except that any physical search approved by the Attorney 
     General to gather foreign intelligence information shall not 
     be deemed unlawful for failure to follow the procedures of 
     this title, if that search is conducted within 180 days 
     following the date of enactment of this title pursuant to 
     regulations issued by the Attorney General, which are in the 
     possession of the Select Committee on Intelligence of the 
     Senate and the Permanent Select Committee on Intelligence of 
     the House of Representatives prior to the date of 
     enactment.''.
              TITLE XI--LOCAL EMPOWERMENT AND FLEXIBILITY

     SEC. 1101. SHORT TITLE.

       This title may be cited as the ``Local Empowerment and 
     Flexibility Act of 1994''.

     SEC. 1102. FINDINGS.

       The Congress finds that--
       (1) historically, Federal social service programs have 
     addressed the Nation's social problems by providing 
     categorical assistance with detailed requirements relating to 
     the use of funds;
       (2) while the assistance described in paragraph (1) has 
     been directed at critical problems, some program requirements 
     may inadvertently impede the effective delivery of social 
     services;
       (3) the Nation's local governments and private, nonprofit 
     organizations are dealing with increasingly complex social 
     problems which require the delivery of many kinds of social 
     services;
       (4) the Nation's communities are diverse, and different 
     social needs are present in different communities;
       (5) it is more important than ever to provide programs 
     that--
       (A) promote local delivery of social services to meet the 
     full range of needs of individuals and families;
       (B) respond flexibly to the diverse needs of the Nation's 
     communities;
       (C) reduce the barriers between programs that impede local 
     governments' ability to effectively deliver social services; 
     and
       (D) empower local governments and private, nonprofit 
     organizations to be innovative in creating programs that meet 
     the unique needs of the people in their communities while 
     continuing to address national social service goals; and
       (6) many communities have innovative planning and community 
     involvement strategies for social services, but Federal, 
     State, and local regulations often hamper full implementation 
     of local plans.

     SEC. 1103. PURPOSES.

       The purposes of this title are to--
       (1) enable more efficient use of Federal, State, and local 
     resources;
       (2) place less emphasis in Federal social service programs 
     on measuring resources and procedures and more emphasis on 
     achieving Federal, State, and local social services goals;
       (3) enable local governments and private, nonprofit 
     organizations to adapt programs of Federal assistance to the 
     particular needs of low income citizens and the operating 
     practices of recipients, by--
       (A) drawing upon appropriations available from more than 
     one Federal program; and
       (B) integrating programs and program funds across existing 
     Federal assistance categories; and
       (4) enable local governments and private, nonprofit 
     organizations to work together and build stronger cooperative 
     partnerships to address critical social service problems.

     SEC. 1104. DEFINITIONS.

       For purposes of this Act--
       (1) the term ``approved local flexibility plan'' means a 
     local flexibility plan that combines funds from Federal, 
     State, local government or private sources to address the 
     social service needs of a community (or any part of such a 
     plan) that is approved by the Community Enterprise Board 
     under section 1106;
       (2) the term ``community advisory committee'' means such a 
     committee established by a local government under section 
     1110;
       (3) the term ``Community Enterprise Board'' means the board 
     established by the President that is composed of the--
       (A) Vice President;
       (B) Assistant to the President for Domestic Policy;
       (C) Assistant to the President for Economic Policy;
       (D) Secretary of the Treasury;
       (E) Attorney General;
       (F) Secretary of the Interior;
       (G) Secretary of Agriculture;
       (H) Secretary of Commerce;
       (I) Secretary of Labor;
       (J) Secretary of Health and Human Services;
       (K) Secretary of Housing and Urban Development;
       (L) Secretary of Transportation;
       (M) Secretary of Education;
       (N) Administrator of the Environmental Protection Agency;
       (O) Director of National Drug Control Policy;
       (P) Administrator of the Small Business Administration;
       (Q) Director of the Office of Management and Budget; and
       (R) Chair of the Council of Economic Advisers.
       (4) the term ``covered Federal assistance program'' means 
     an eligible Federal assistance program that is included in a 
     local flexibility plan of a local government;
       (5) the term ``eligible Federal assistance program''--
       (A) means a Federal program under which assistance is 
     available, directly or indirectly, to a local government or a 
     qualified organization to carry out a program for--
       (i) economic development;
       (ii) employment training;
       (iii) health;
       (iv) housing;
       (v) nutrition;
       (vi) other social services; or
       (vii) rural development; and
       (B) does not include a Federal program under which 
     assistance is provided by the Federal Government directly to 
     a beneficiary of that assistance or to a State as a direct 
     payment to an individual;
       (6) the term ``eligible local government'' means a local 
     government that is eligible to receive assistance under 1 or 
     more covered Federal programs;
       (7) the term ``local flexibility plan'' means a 
     comprehensive plan for the integration and administration by 
     a local government of assistance provided by the Federal 
     Government under 2 or more eligible Federal assistance 
     programs;
       (8) the term ``local government'' means a subdivision of a 
     State that is a unit of general local government (as defined 
     under section 6501 of title 31, United States Code);
       (9) the term ``low income'' means having an income that is 
     not greater than 200 percent of the Federal poverty income 
     level;
       (10) the term ``priority funding'' means giving higher 
     priority (including by the assignment of extra points, if 
     applicable) to applications for Federal assistance submitted 
     by a local government having an approved local flexibility 
     program, by--
       (A) a person located in the jurisdiction of such a 
     government; or
       (B) a qualified organization eligible for assistance under 
     a covered Federal assistance program included in such a plan;
       (11) the term ``qualified organization'' means a private, 
     nonprofit organization described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 that is exempt from taxation 
     under section 501(a) of the Internal Revenue Code of 1986; 
     and
       (12) the term ``State'' means the 50 States, the District 
     of Columbia, Puerto Rico, American Samoa, Guam, and the 
     Virgin Islands.

     SEC. 1105. DEMONSTRATION PROGRAM.

       The Community Enterprise Board shall--
       (1) establish and administer a local flexibility 
     demonstration program by approving local flexibility plans in 
     accordance with the provisions of this title;
       (2) no later than 180 days after the date of the enactment 
     of this Act, select no more than 30 local governments from no 
     more than 6 States to participate in such program, of which--
       (A) 3 States shall each have a population of 3,500,000 or 
     more as determined under the most recent decennial census; 
     and
       (B) 3 States shall each have a population of 3,500,000 or 
     less as determined under the most recent decennial census.

     SEC. 1106. PROVISION OF FEDERAL ASSISTANCE IN ACCORDANCE WITH 
                   APPROVED LOCAL FLEXIBILITY PLAN.

       (a) Payments to Local Governments.--Notwithstanding any 
     other provision of law, amounts available to a local 
     government or a qualified organization under a covered 
     Federal assistance program included in an approved local 
     flexibility plan shall be provided to and used by the local 
     government or organization in accordance with the approved 
     local flexibility plan.
       (b) Eligibility for Benefits.--An individual or family that 
     is eligible for benefits or services under a covered Federal 
     assistance program included in an approved local flexibility 
     plan may receive those benefits only in accordance with the 
     approved local flexibility plan.

     SEC. 1107. APPLICATION FOR APPROVAL OF LOCAL FLEXIBILITY 
                   PLAN.

       (a) In General.--A local government may submit to the 
     Community Enterprise Board in accordance with this section an 
     application for approval of a local flexibility plan.
       (b) Contents of Application.--An application submitted 
     under this section shall include--
       (1) a proposed local flexibility plan that complies with 
     subsection (c);
       (2) certification by the chief executive of the local 
     government, and such additional assurances as may be required 
     by the Community Enterprise Board, that--
       (A) the local government has the ability and authority to 
     implement the proposed plan, directly or through contractual 
     or other arrangements, throughout the geographic area in 
     which the proposed plan is intended to apply;
       (B) amounts are available from non-Federal sources to pay 
     the non-Federal share of all covered Federal assistance 
     programs included in the proposed plan; and
       (C) low income individuals and families that reside in that 
     geographic area participated in the development of the 
     proposed plan;
       (3) any comments on the proposed plan submitted under 
     subsection (d) by the Governor of the State in which the 
     local government is located;
       (4) public comments on the plan including the transcript of 
     at least 1 public hearing and comments of the appropriate 
     community advisory committee established under section 1110; 
     and
       (5) other relevant information the Community Enterprise 
     Board may require to approve the proposed plan.
       (c) Contents of Plan.--A local flexibility plan submitted 
     by a local government under this section shall include--
       (1) the geographic area to which the plan applies and the 
     rationale for defining the area;
       (2) the particular groups of individuals, by age, service 
     needs, economic circumstances, or other defining factors, who 
     shall receive services and benefits under the plan;
       (3)(A) specific goals and measurable performance criteria, 
     a description of how the plan is expected to attain those 
     goals and criteria;
       (B) a description of how performance shall be measured; and
       (C) a system for the comprehensive evaluation of the impact 
     of the plan on participants, the community, and program 
     costs;
       (4) the eligible Federal assistance programs to be included 
     in the plan as covered Federal assistance programs and the 
     specific benefits that shall be provided under the plan under 
     such programs, including--
       (A) criteria for determining eligibility for benefits under 
     the plan;
       (B) the services available;
       (C) the amounts and form (such as cash, in-kind 
     contributions, or financial instruments) of nonservice 
     benefits; and
       (D) any other descriptive information the Community 
     Enterprise Board considers necessary to approve the plan;
       (5) except for the requirements under section 1109(b)(3), 
     any Federal statutory or regulatory requirement applicable 
     under a covered Federal assistance program included in the 
     plan, the waiver of which is necessary to implement the plan;
       (6) fiscal control and related accountability procedures 
     applicable under the plan;
       (7) a description of the sources of all non-Federal funds 
     that are required to carry out covered Federal assistance 
     programs included in the plan;
       (8) written consent from each qualified organization for 
     which consent is required under section 1107(b)(2); and
       (9) other relevant information the Community Enterprise 
     Board may require to approve the plan.
       (d) Procedure for Applying.--(1) To apply for approval of a 
     local flexibility plan, a local government shall submit an 
     application in accordance with this section to the Governor 
     of the State in which the local government is located.
       (2) A Governor who receives an application from a local 
     government under paragraph (1) may, by no later than 30 days 
     after the date of that receipt--
       (A) prepare comments on the proposed local flexibility plan 
     included in the application;
       (B) describe any State laws which are necessary to waive 
     for successful implementation of a local plan; and
       (C) submit the application and comments to the Community 
     Enterprise Board.
       (3) If a Governor fails to act within 30 days after 
     receiving an application under paragraph (2), the applicable 
     local government may submit the application to the Community 
     Enterprise Board.

     SEC. 1108. REVIEW AND APPROVAL OF LOCAL FLEXIBILITY PLANS.

       (a) Review of Applications.--Upon receipt of an application 
     for approval of a local flexibility plan under this title, 
     the Community Enterprise Board shall--
       (1) approve or disapprove all or part of the plan within 45 
     days after receipt of the application;
       (2) notify the applicant in writing of that approval or 
     disapproval by not later than 15 days after the date of that 
     approval or disapproval; and
       (3) in the case of any disapproval of a plan, include a 
     written justification of the reasons for disapproval in the 
     notice of disapproval sent to the applicant.
       (b) Approval.--(1) The Community Enterprise Board may 
     approve a local flexibility plan for which an application is 
     submitted under this title, or any part of such a plan, if a 
     majority of members of the Board determines that--
       (A) the plan or part shall improve the effectiveness and 
     efficiency of providing benefits under covered Federal 
     programs included in the plan by reducing administrative 
     inflexibility, duplication, and unnecessary expenditures;
       (B) the applicant local government has adequately 
     considered, and the plan or part of the plan appropriately 
     addresses, any effect that administration of each covered 
     Federal program under the plan or part of the plan shall have 
     on administration of the other covered Federal programs under 
     that plan or part of the plan;
       (C) the applicant local government has or is developing 
     data bases, planning, and evaluation processes that are 
     adequate for implementing the plan or part of the plan;
       (D) the plan shall more effectively achieve Federal 
     assistance goals at the local level and shall better meet the 
     needs of local citizens;
       (E) implementation of the plan or part of the plan shall 
     adequately achieve the purposes of this title and of each 
     covered Federal assistance program under the plan or part of 
     the plan;
       (F) the plan and the application for approval of the plan 
     comply with the requirements of this title;
       (G) the plan or part of the plan is adequate to ensure that 
     individuals and families that receive benefits under covered 
     Federal assistance programs included in the plan or part 
     shall continue to receive benefits that meet the needs 
     intended to be met under the program;
       (H) the qualitative level of those benefits shall not be 
     reduced for any individual or family; and
       (I) the local government has--
       (i) waived the corresponding local laws necessary for 
     implementation of the plan; and
       (ii) sought any necessary waivers from the State.
       (2) The Community Enterprise Board may not approve any part 
     of a local flexibility plan if--
       (A) implementation of that part would result in any 
     increase in the total amount of obligations or outlays of 
     discretionary appropriations or direct spending under covered 
     Federal assistance programs included in that part, over the 
     amounts of such obligations and outlays that would occur 
     under those programs without implementation of the part; or
       (B) in the case of a plan or part that applies to 
     assistance to a qualified organization under an eligible 
     Federal assistance program, the qualified organization does 
     not consent in writing to the receipt of that assistance in 
     accordance with the plan.
       (3) The Community Enterprise Board shall disapprove a part 
     of a local flexibility plan if a majority of the Board 
     disapproves that part of the plan based on a failure of the 
     part to comply with paragraph (1).
       (4) In approving any part of a local flexibility plan, the 
     Community Enterprise Board shall specify the period during 
     which the part is effective. An approved local flexibility 
     plan shall not be effective after the date of the termination 
     of effectiveness of this title under section 1113(a).
       (5) Disapproval by the Community Enterprise Board of any 
     part of a local flexibility plan submitted by a local 
     government under this title shall not affect the eligibility 
     of a local government, a qualified organization, or any 
     individual for benefits under any Federal program.
       (c) Memoranda of Understanding.--(1) The Community 
     Enterprise Board may not approve a part of a local 
     flexibility plan unless each local government and each 
     qualified organization that would receive assistance under 
     the plan enters into a memorandum of understanding under this 
     subsection with the Community Enterprise Board.
       (2) A memorandum of understanding under this subsection 
     shall specify all understandings that have been reached by 
     the Community Enterprise Board, the local government, and 
     each qualified organization that is subject to a local 
     flexibility plan, regarding the approval and implementation 
     of all parts of a local flexibility plan that are the subject 
     of the memorandum, including understandings with respect to--
       (A) all requirements under covered Federal assistance 
     programs that are to be waived by the Community Enterprise 
     Board under section 1109(b);
       (B)(i) the total amount of Federal funds that shall be 
     provided as benefits under or used to administer covered 
     Federal assistance programs included in those parts; or
       (ii) a mechanism for determining that amount, including 
     specification of the total amount of Federal funds that shall 
     be provided or used under each covered Federal assistance 
     program included in those parts;
       (C) the sources of all non-Federal funds that shall be 
     provided as benefits under or used to administer those parts;
       (D) measurable performance criteria that shall be used 
     during the term of those parts to determine the extent to 
     which the goals and performance levels of the parts are 
     achieved; and
       (E) the data to be collected to make that determination.
       (d) Limitation on Confidentiality Requirements.--The 
     Community Enterprise Board may not, as a condition of 
     approval of any part of a local flexibility plan or with 
     respect to the implementation of any part of an approved 
     local flexibility plan, establish any confidentiality 
     requirement that would--
       (1) impede the exchange of information needed for the 
     design or provision of benefits under the parts; or
       (2) conflict with law.

     SEC. 1109. IMPLEMENTATION OF APPROVED LOCAL FLEXIBILITY 
                   PLANS; WAIVER OF REQUIREMENTS.

       (a) Payments and Administration in Accordance With Plan.--
     Notwithstanding any other law, any benefit that is provided 
     under a covered Federal assistance program included in an 
     approved local flexibility plan shall be paid and 
     administered in the manner specified in the approved local 
     flexibility plan.
       (b) Waiver of Requirements.--(1) Notwithstanding any other 
     law and subject to paragraphs (2) and (3), the Community 
     Enterprise Board may waive any requirement applicable under 
     Federal law to the administration of, or provision of 
     benefits under, any covered Federal assistance program 
     included in an approved local flexibility plan, if that 
     waiver is--
       (A) reasonably necessary for the implementation of the 
     plan; and
       (B) approved by a majority of members of the Community 
     Enterprise Board.
       (2) The Community Enterprise Board may not waive a 
     requirement under this subsection unless the Board finds that 
     waiver of the requirement shall not result in a qualitative 
     reduction in services or benefits for any individual or 
     family that is eligible for benefits under a covered Federal 
     assistance program.
       (3) The Community Enterprise Board may not waive any 
     requirement under this subsection--
       (A) that enforces any constitutional or statutory right of 
     an individual, including any right under--
       (i) title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.);
       (ii) section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 701 et seq.);
       (iii) title IX of the Education Amendments of 1972 (86 
     Stat. 373 et seq.);
       (iv) the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
     seq.); or
       (v) the Americans with Disabilities Act of 1990;
       (B) for payment of a non-Federal share of funding of an 
     activity under a covered Federal assistance program; or
       (C) for grants received on a maintenance of effort basis.
       (c) Special Assistance.--To the extent permitted by law, 
     the head of each Federal agency shall seek to provide special 
     assistance to a local government or qualified organization to 
     support implementation of an approved local flexibility plan, 
     including expedited processing, priority funding, and 
     technical assistance.
       (d) Evaluation and Termination.--(1) A local government, in 
     accordance with regulations issued by the Community 
     Enterprise Board, shall--
       (A) submit such reports on and cooperate in such audits of 
     the implementation of its approved local flexibility plan; 
     and
       (B) periodically evaluate the effect implementation of the 
     plan has had on--
       (i) individuals who receive benefits under the plan;
       (ii) communities in which those individuals live; and
       (iii) costs of administering covered Federal assistance 
     programs included in the plan.
       (2) No later than 90 days after the end of the 1-year 
     period beginning on the date of the approval by the Community 
     Enterprise Board of an approved local flexibility plan of a 
     local government, and annually thereafter, the local 
     government shall submit to the Community Enterprise Board a 
     report on the principal activities and achievements under the 
     plan during the period covered by the report, comparing those 
     achievements to the goals and performance criteria included 
     in the plan under section 1107(c)(3).
       (3)(A) If the Community Enterprise Board, after 
     consultation with the head of each Federal agency responsible 
     for administering a covered Federal assistance program 
     included in an approved local flexibility plan of a local 
     government, determines--
       (i) that the goals and performance criteria included in the 
     plan under section 1107(c)(3) have not been met; and
       (ii) after considering any experiences gained in 
     implementation of the plan, that those goals and criteria are 
     sound;

     the Community Enterprise Board may terminate the 
     effectiveness of the plan.
       (B) In terminating the effectiveness of an approved local 
     flexibility plan under this paragraph, the Community 
     Enterprise Board shall allow a reasonable period of time for 
     appropriate Federal, State, and local agencies and qualified 
     organizations to resume administration of Federal programs 
     that are covered Federal assistance programs included in the 
     plan.
       (e) Final Report; Extension of Plans.--(1) No later than 45 
     days after the end of the effective period of an approved 
     local flexibility plan of a local government, or at any time 
     that the local government determines that the plan has 
     demonstrated its worth, the local government shall submit to 
     the Community Enterprise Board a final report on its 
     implementation of the plan, including a full evaluation of 
     the successes and shortcomings of the plan and the effects of 
     that implementation on individuals who receive benefits under 
     those programs.
       (2) The Community Enterprise Board may extend the effective 
     period of an approved local flexibility plan for such period 
     as may be appropriate, based on the report of a local 
     government under paragraph (1).

     SEC. 1110. COMMUNITY ADVISORY COMMITTEES.

       (a) Establishment.--A local government that applies for 
     approval of a local flexibility plan under this title shall 
     establish a community advisory committee in accordance with 
     this section.
       (b) Functions.--A community advisory committee shall advise 
     a local government in the development and implementation of 
     its local flexibility plan, including advice with respect 
     to--
       (1) conducting public hearings;
       (2) representing the interest of low income individuals and 
     families; and
       (3) reviewing and commenting on all community policies, 
     programs, and actions under the plan which affect low income 
     individuals and families, with the purpose of ensuring 
     maximum coordination and responsiveness of the plan in 
     providing benefits under the plan to those individuals and 
     families.
       (c) Membership.--The membership of a community advisory 
     committee shall--
       (1) consist of--
       (A) low income individuals, who shall--
       (i) comprise at least one-third of the membership; and
       (ii) include minority individuals who are participants or 
     who qualify to participate in eligible Federal assistance 
     programs;
       (B) representatives of low income individuals and families;
       (C) persons with leadership experience in the private and 
     voluntary sectors;
       (D) local elected officials;
       (E) representatives of participating qualified 
     organizations; and
       (F) the general public; and
       (2) include individuals and representatives of community 
     organizations who shall help to enhance the leadership role 
     of the local government in developing a local flexibility 
     plan.
       (d) Opportunity for Review and Comment by Committee.--
     Before submitting an application for approval of a final 
     proposed local flexibility plan, a local government shall 
     submit the final proposed plan for review and comment by a 
     community advisory committee established by the local 
     government.
       (e) Committee Review of Reports.--Before submitting annual 
     or final reports on an approved assistance plan, a local 
     government or private nonprofit organization shall submit the 
     report for review and comment to the community advisory 
     committee.

     SEC. 1111. TECHNICAL AND OTHER ASSISTANCE.

       (a) Technical Assistance.--(1) The Community Enterprise 
     Board may provide, or direct that the head of a Federal 
     agency provide, technical assistance to a local government or 
     qualified organization in developing information necessary 
     for the design or implementation of a local flexibility plan.
       (2) Assistance may be provided under this subsection if a 
     local government makes a request that includes, in accordance 
     with requirements established by the Community Enterprise 
     Board--
       (A) a description of the local flexibility plan the local 
     government proposes to develop;
       (B) a description of the groups of individuals to whom 
     benefits shall be provided under covered Federal assistance 
     programs included in the plan; and
       (C) such assurances as the Community Enterprise Board may 
     require that--
       (i) in the development of the application to be submitted 
     under this title for approval of the plan, the local 
     government shall provide adequate opportunities to 
     participate to--
       (I) low income individuals and families that shall receive 
     benefits under covered Federal assistance programs included 
     in the plan; and
       (II) governmental agencies that administer those programs; 
     and
       (ii) the plan shall be developed after considering fully--
       (I) needs expressed by those individuals and families;
       (II) community priorities; and
       (III) available governmental resources in the geographic 
     area to which the plan shall apply.
       (b) Details to Board.--At the request of the Chairman of 
     the Community Enterprise Board and with the approval of an 
     agency head who is a member of the Board, agency staff may be 
     detailed to the Community Enterprise Board on a 
     nonreimbursable basis.

     SEC. 1112. COMMUNITY ENTERPRISE BOARD.

       (a) Functions.--The Community Enterprise Board shall--
       (1) receive, review, and approve or disapprove local 
     flexibility plans for which approval is sought under this 
     title;
       (2) upon request from an applicant for such approval, 
     direct the head of an agency that administers a covered 
     Federal assistance program under which substantial Federal 
     assistance would be provided under the plan to provide 
     technical assistance to the applicant;
       (3) monitor the progress of development and implementation 
     of local flexibility plans;
       (4) perform such other functions as are assigned to the 
     Community Enterprise Board by this title; and
       (5) issue regulations to implement this title within 180 
     days after the date of its enactment.
       (b) Reports.--No less than 18 months after the date of the 
     enactment of this Act, and annually thereafter, the Community 
     Enterprise Board shall submit a report on the 5 Federal 
     regulations that are most frequently waived by the Community 
     Enterprise Board for local governments with approved local 
     flexibility plans to the President and the Congress. The 
     President shall review the report and determine whether to 
     amend or terminate such Federal regulations.

     SEC. 1113. TERMINATION AND REPEAL; REPORT.

       (a) Termination and Repeal.--This title is repealed on the 
     date that is 5 years after the date of the enactment of this 
     Act.
       (b) Report.--No later than 4 years after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Congress, a report that--
       (1) describes the extent to which local governments have 
     established and implemented approved local flexibility plans;
       (2) evaluates the effectiveness of covered Federal 
     assistance programs included in approved local flexibility 
     plans; and
       (3) includes recommendations with respect to continuing 
     local flexibility.
                          TITLE XII--HERO ACT

     SEC. 1201. SHORT TITLE.

       This title may be cited as the ``Heroic Efforts to Rescue 
     Others Act'' (HERO Act).

     SEC. 1202. FINDINGS.

       Congress finds that--
       (1) existing Occupational Safety and Health Administration 
     regulations require the issuance of a citation to an employer 
     in a circumstance in which an employee of such employer has 
     voluntarily acted in a heroic manner to rescue individuals 
     from imminent harm during work hours;
       (2) application of such regulations to employers in such 
     circumstance causes hardships to those employers who are 
     responsible for employees who perform heroic acts to save 
     individuals from imminent harm;
       (3) strict application of such regulations in such 
     circumstance penalizes employers as a result of the time lost 
     and legal fees incurred to defend against such citations; and
       (4) in order to save employers the cost of unnecessary 
     enforcement an exemption from the issuance of a citation to 
     an employer under certain situations related to such 
     circumstance is appropriate.

     SEC. 1203. CITATIONS.

       Section 9 of the Occupational Safety and Health Act (29 
     U.S.C. 658) is amended by adding at the end the following new 
     subsection:
       ``(d)(1) No citation may be issued under this section for a 
     rescue activity by an employer's employee of an individual in 
     imminent harm unless--
       ``(A)(i) such employee is designated or assigned by the 
     employee's employer with responsibility to perform or assist 
     in rescue operations; and
       ``(ii) the employer fails to provide protection of the 
     safety and health of such employee, including failing to 
     provide appropriate training and rescue equipment;
       ``(B)(i) such employee is directed by the employee's 
     employer to perform rescue activities in the course of 
     carrying out the employee's job duties; and
       ``(ii) the employer fails to provide protection of the 
     safety and health of such employee, including failing to 
     provide appropriate training and rescue equipment; or
       ``(C)(i) such employee--
       ``(I) is employed in a workplace that requires such 
     employee to carry out duties that are directly related to a 
     workplace operation where the likelihood of life-threatening 
     accidents is foreseeable, such as a workplace operation where 
     employees are located in confined spaces or trenches, handle 
     hazardous waste, respond to emergency situations, perform 
     excavations, or perform construction over water;
       ``(II) has not been designated or assigned to perform or 
     assist in rescue operations; and
       ``(III) voluntarily elects to rescue such an individual; 
     and
       ``(ii) the employer has failed to instruct employees not 
     designated or assigned to perform or assist in rescue 
     operations--
       ``(I) of the arrangements for rescue;
       ``(II) not to attempt rescue; and
       ``(III) of the hazards of attempting rescue without 
     adequate training or equipment.
       ``(2) For purposes of this subsection, the term `imminent 
     harm' means the existence of any condition or practice that 
     could reasonably be expected to cause death or serious 
     physical harm before such condition or practice can be 
     abated.''.
                  TITLE XIII--MISCELLANEOUS PROVISIONS

     SEC. 1301. ECONOMIC AND EMPLOYMENT IMPACT ACT.

       (a) Short Title.--This section may be cited as the 
     ``Economic and Employment Impact Act''.
       (b) Findings and Purposes.--
       (1) Findings.--The Congress finds that--
       (A) compliance with Federal regulations is estimated to 
     cost the private sector and State and local governments as 
     much as $850,000,000,000 a year;
       (B) excessive Federal regulation and mandates increase the 
     cost of doing business and thus hinder economic growth and 
     employment opportunities;
       (C) State and local governments are forced to absorb the 
     cost of unfunded Federal mandates; and
       (D) in addition to budget and deficit estimates, Congress 
     and the executive branch decision makers need to be aware of 
     regulatory cost impacts of proposed Federal actions on the 
     private sector and State, local, and tribal governments.
       (2) Purposes.--The purposes of this section are--
       (A) to ensure that the people of United States are fully 
     apprised of the impact of Federal legislative and regulatory 
     activity on economic growth and employment;
       (B) to require both the Congress and the executive branch 
     to acknowledge and to take responsibility for the fiscal and 
     economic effects of legislative and regulatory actions and 
     activities;
       (C) to provide a means to ensure that congressional and 
     executive branch action are focused on enhancing economic 
     growth and providing increased job opportunities for the 
     people of United States; and
       (D) to protect against congressional or executive branch 
     actions which hinder economic growth or eliminate jobs for 
     the people of United States.
       (c) Economic and Employment Impact Statements for 
     Legislation.--
       (1) Preparation.--The Director of the Congressional Budget 
     Office (referred to as the ``Director'') shall prepare an 
     economic and employment impact statement, as described in 
     paragraph (2), to accompany each bill or joint resolution 
     reported by any committee (except the Committee on 
     Appropriations) of the House of Representatives or the Senate 
     or considered on the floor of either House.
       (2) Contents.--The economic and employment impact statement 
     required by paragraph (1) shall include the following:
       (A) An estimate of the numbers of individuals and 
     businesses who would be regulated by the bill or joint 
     resolution and a determination of the groups and classes of 
     such individuals and businesses;
       (B) A determination of the economic impact of such 
     regulation on individuals, consumers, and businesses 
     affected.
       (C)(i) An estimate of the costs which would be incurred by 
     the private sector in carrying out or complying with such 
     bill or joint resolution in the fiscal year in which it is to 
     become effective, and in each of the 4 fiscal years following 
     such fiscal year, together with the basis for each such 
     estimate.
       (ii) Estimates required by this subparagraph shall include 
     specific data on costs imposed on groups and classes of 
     individuals and businesses, including small business and 
     consumers, and employment impacts on those individuals and 
     businesses.
       (D) An estimate of the costs that would be incurred by 
     State and local governments, which shall include--
       (i) the estimates required by section 403 of the 
     Congressional Budget Act of 1974; and
       (ii) an evaluation of the extent of the costs of the 
     Federal mandates arising from such bill or joint resolution 
     in comparison with funding assistance provided by the Federal 
     Government to address the costs of complying with such 
     mandates.
       (3) Report not available.--If compliance with the 
     requirements of paragraph (1) is impracticable, the Director 
     shall submit a statement setting forth the reasons for 
     noncompliance.
       (4) Statement to accompany committee reports.--The economic 
     and employment impact statement required by this subsection 
     shall accompany each bill or joint resolution reported or 
     otherwise considered on the floor of either House. Such 
     statement shall be printed in the committee report upon 
     timely submission to the committee. If not timely filed or 
     otherwise unavailable for publication in the committee 
     report, the economic and regulatory statement shall be 
     published in the Congressional Record not less than 2 
     calendar days prior to any floor consideration of a bill or 
     joint resolution subject to the provisions of this subsection 
     by either House.
       (5) Committee statements optional.--Nothing in this 
     subsection shall be construed to modify or otherwise affect 
     the requirements of paragraph 11(b) of rule XXVI of the 
     Standing Rules of the Senate, regarding preparation of an 
     evaluation of regulatory impact.
       (d) Economic and Employment Impact Statement for Executive 
     Branch Regulations.--
       (1) Preparation.--Each Federal department or executive 
     branch agency shall prepare an economic and employment impact 
     statement, as described in paragraph (2), to accompany 
     regulatory actions.
       (2) Contents.--The economic and employment impact statement 
     required by paragraph (1) shall include the following:
       (A) An estimate of the numbers of individuals and 
     businesses who would be regulated by the regulatory action 
     and a determination of the groups and classes of such 
     individuals and businesses.
       (B) A determination of the economic impact of such 
     regulation on individuals, consumers, and businesses 
     affected.
       (C)(i) An estimate of the costs which would be incurred by 
     the private sector in carrying out or complying with such 
     regulatory action in the fiscal year in which it is to become 
     effective and in each of the 4 fiscal years following such 
     fiscal year, together with the basis for each such estimate;
       (ii) The estimate required by this subparagraph shall 
     include specific data on costs on groups and classes of 
     individuals and businesses, including small business and 
     consumers, and employment impacts on those individuals and 
     businesses.
       (D) An estimate of the costs that would be incurred by 
     State and local governments, which shall include--
       (i) an estimate of cost which would be incurred by State 
     and local governments in carrying out or complying with the 
     regulatory action in the fiscal year in which it is to become 
     effective and in each of the 4 fiscal years following such 
     fiscal year, together with the basis for such estimate;
       (ii) a comparison of the estimates of costs described in 
     clause (i), with any available estimates of costs made by any 
     Federal or State agency;
       (iii) if the agency determines that the regulatory action 
     is likely to result in annual cost to State and local 
     governments of $200,000,000 or more, or is likely to have 
     exceptional fiscal consequences for a geographic region or a 
     particular level of government, a statement by the agency 
     detailing such results or consequences; and
       (iv) an evaluation of the extent of the costs of the 
     Federal mandates arising from the regulatory action in 
     comparison with funding assistance provided by the Federal 
     Government to address the costs of complying with such 
     mandates.
       (4) Report not available.--If compliance with the 
     requirements of paragraph (1) is impracticable, the agency or 
     department shall submit a statement setting forth the reasons 
     for noncompliance.
       (5) Statement to accompany federal regulatory actions.--The 
     economic and employment impact statement with respect to a 
     regulatory action required by this subsection shall be 
     published in the Federal Register together with the 
     publication of such regulatory action. If the regulatory 
     action is not published in the Federal Register, the economic 
     and employment impact statement shall be made available to 
     the public in a timely manner.
       (6) Definition of ``regulatory action''.--For purposes of 
     this subsection, the term ``regulatory action'' means any 
     substantive action by a Federal agency (required to be or 
     customarily published in the Federal Register) that 
     promulgates or is expected to lead to the promulgation of a 
     final rule or regulation, including notices of inquiry, 
     advance notices of proposed rulemaking, notices of proposed 
     rulemaking, interim final rules, and final rules and 
     regulations.
       (e) Provision for National Security Emergency Waiver.--
       (1) Congressional economic impact statements.--The Congress 
     may waive the requirements of subsection (c) at any time in 
     which a declaration of war is in effect, or in response to a 
     national security emergency at the request of the President.
       (2) Executive regulations economic impact statements.--The 
     President may waive the requirements of subsection (d) at any 
     time in which a declaration of war is in effect, or in 
     response to a national security emergency as determined by 
     the President in consultation with Congress.
       (f) Effective Date.--This section shall take effect 30 days 
     after the date enactment of this Act.

     SEC. 1302. URBAN UNIVERSITY BUSINESS INITIATIVE GRANTS.

       (a) Urban University Business Initiative Grants.--
       (1) Authorization.--The Secretary of Commerce (hereafter in 
     this section referred to as the ``Secretary'') is authorized 
     to make grants to eligible institutions in accordance with 
     this section.
       (2) Application.--
       (A) In general.--An eligible institution seeking assistance 
     under this section shall submit to the Secretary an 
     application at such time, in such form, and containing or 
     accompanied by such information and assurances as the 
     Secretary may require by regulation.
       (B) Contents.--Except as provided in subparagraph (C), each 
     application submitted pursuant to subparagraph (A) shall 
     include--
       (i) a description of the activities and services for which 
     assistance is sought;
       (ii) evidence of coordination with any small business 
     development centers in existence in the community; and
       (iii) documentation of the formation of a consortium that 
     includes, in addition to eligible institutions, one or more 
     of the following entities:

       (I) A nonprofit organization.
       (II) A business or other employer.

       (C) Waiver.--The Secretary may waive the requirements of 
     subparagraph (B)(iii) for any applicant who can demonstrate 
     to the satisfaction of the Secretary that the applicant has 
     devised an integrated and coordinated plan that otherwise 
     meets the requirements of this section.
       (3) Selection Procedures.--Not later than 120 days after 
     the date of enactment of this section, the Secretary shall, 
     by regulation, develop a formal procedure for the submission 
     of applications under this section and shall publish in the 
     Federal Register an announcement of that procedure and the 
     availability of funds under this section.
       (b) Authorized Activities.--
       (1) In general.--Funds provided under this section shall be 
     used to design and implement programs to assist businesses, 
     especially those in lower income urban communities, to become 
     more productive and able to compete in the global 
     marketplace.
       (2) Specific authorized activities.--Activities conducted 
     with funds made available under this section may include 
     research on, or planning and implementation of technology 
     transfer, technical training, the delivery of services, or 
     technical assistance in--
       (A) business development;
       (B) business creation;
       (C) business expansion; and
       (D) human resource management.
       (c) Peer Review Panel.--
       (1) Establishment.--Not later than 90 days after the date 
     on which the Secretary publishes the announcement in the 
     Federal Register in accordance with subsection (a)(3), the 
     Secretary shall appoint a peer review panel (hereafter in 
     this section referred to as the ``panel'').
       (2) Membership.--In appointing the panel under paragraph 
     (1), the Secretary shall consult with officials of other 
     Federal agencies and with non-Federal organizations in order 
     to ensure that--
       (A) the panel membership is geographically balanced; and
       (B) the panel is composed of representatives from public 
     and private institutions of higher education, labor, 
     business, and nonprofit organizations having expertise in 
     business development in lower income urban communities.
       (3) Duties.--The panel shall--
       (A) review applications submitted under this section; and
       (B) make recommendations to the Secretary concerning the 
     selection of grant recipients.
       (d) Disbursement of Funds.--
       (1) Limitation on amount.--The Secretary shall not provide 
     assistance under this section to any recipient which exceeds 
     $400,000 during any 1-year period.
       (2) Equitable geographic distribution.--The Secretary shall 
     award grants under this section in a manner that achieves 
     equitable geographic distribution of such grants.
       (e) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Lower income urban community.--The term ``lower income 
     urban community'' means an urban area in which the percent of 
     residents living below the Federal poverty level is not less 
     than 115 percent of the statewide average.
       (2) Urban area.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``urban area'' means a primary metropolitan 
     statistical area of the United States Department of Commerce, 
     Bureau of the Census.
       (B) Exception.--With respect to a State that does not 
     contain an urban area, as defined in subparagraph (A), the 
     Secretary shall designate 1 area in the State as an urban 
     area for purposes of this section.
       (3) Eligible institution.--
       (A) Institution or consortium.--The term ``eligible 
     institution'' means a nonprofit institution of higher 
     education that meets the requirements of subparagraph (B), or 
     a consortium of such institutions, any 1 of which meets the 
     requirements of subparagraph (B).
       (B) Requirements.--An institution meets the requirements of 
     this subparagraph if the institution--
       (i) is located in an urban area;
       (ii) draws a substantial portion of its undergraduate 
     students from the urban area in which such institution is 
     located, or from contiguous areas;
       (iii) carries out programs to make postsecondary 
     educational opportunities more accessible to residents of 
     such urban area, or contiguous areas;
       (iv) has the present capacity to provide resources 
     responsive to the needs and priorities of such urban area and 
     contiguous areas;
       (v) offers a range of professional, technical, or graduate 
     programs sufficient to sustain the capacity of such 
     institution to provide such resources;
       (vi) has demonstrated and sustained a sense of 
     responsibility to such urban area and contiguous areas and 
     the people of such areas; and
       (vii) has a school of business accredited by the American 
     Assembly of Collegiate Schools of Business (or similar 
     organization) with faculty experienced in conducting research 
     on issues of immediate concern to small and emerging 
     businesses.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $10,000,000, for fiscal year 1995; and
       (2) such sums as may be necessary, for fiscal years 1996, 
     1997, 1998, and 1999.

     SEC. 1303. PROHIBITION ON SOLICITATION OF CAMPAIGN 
                   CONTRIBUTIONS BY PERSONS AWARDING CONTRACTS.

       (a) In General.--Chapter 29 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 610. Solicitation of political contributions by 
       persons awarding contracts

       ``Any person who awards any contract or grant under any 
     provision of, or any amendment made by, the National 
     Competitiveness Act of 1994 who, during the 5-year period 
     beginning on the date the contract or grant is awarded, 
     knowingly solicits a political contribution (within the 
     meaning of section 7322(3) of title 5, United States Code) 
     from any person who was awarded such contract or grant (or 
     any owner, officer, employee, or agent thereof) shall be 
     imprisoned for 1 year or fined not more than $10,000, or 
     both.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 29 of title 18, United States Code, is amended by 
     adding at the end the following new item:

``610. Solicitation of political contributions by persons awarding 
              contracts.''.

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