[Senate Report 105-110]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 215
105th Congress                                                   Report
                                 SENATE

 1st Session                                                    105-110
_______________________________________________________________________


 
         NATIONAL SCIENCE FOUNDATION AUTHORIZATION ACT OF 1997

                                _______
                                

                October 15, 1997.--Ordered to be printed

  Filed under authority of the order of the Senate of October 9, 1997

_______________________________________________________________________


    Mr. Jeffords, from the Committee on Labor and Human Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1046]

    The Committee on Labor and Human Resources, to which was 
referred the bill (S. 1046) to authorize appropriations for 
fiscal years 1998 and 1999 for the National Science Foundation, 
and for other purposes, having considered the same, reports 
favorably thereon and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Introduction.....................................................1
 II. Purpose and summary..............................................3
III. Background and need for legislation..............................3
 IV. Legislative history and committee action.........................4
  V. Explanation of bill and committee views..........................4
 VI. Cost estimate...................................................11
VII. Regulatory impact statement.....................................12
VIII.Application of law to the legislative branch....................12

 IX. Section-by-section analysis.....................................13
  X. Changes in existing law.........................................15

                            I. Introduction

    The prominent role that science played during World War II 
firmly established the importance of government funded basic 
research in strengthening and preserving economic and military 
security. Federally funded research provided the American war 
effort with radar, sonar, the proximity fuse, blood plasma, 
sulfanilamide, penicillin, and the atomic bomb.
    In 1944, President Roosevelt charged Vannevar Bush, his 
chief science advisor, with evaluating the most effective way 
to harness this technological infrastructure in peace time. The 
Bush report--``Science--The Endless Frontier''--established a 
strategy and rationale for Federal support of basic research. 
The report argued that ``a nation which depends upon others for 
its new basic scientific knowledge will be slow in its 
industrial progress and weak in its competitive position in 
world trade regardless of its mechanical skill.'' This report 
provided the blueprint for the creation of the National Science 
Foundation (NSF).
    NSF was established in 1950 to ``develop and encourage the 
pursuit of a national policy for the promotion of basic 
research and education in the sciences.'' Eight years later, 
following the 1957 Soviet launch of the Sputnik satellite, this 
mission was expanded to provide greater support for science 
education and literacy. Over the next three decades, NSF became 
the primary Federal sponsor of basic scientific research in 
mathematics, physical sciences, computer science, engineering, 
and environmental science at colleges and universities. Equally 
important to the future of our Nation, NSF has become a primary 
catalyst for math and science education reform, and for the 
development of the information highway.

             NSF's Role in Federal Research and Development

    The National Science Foundation receives over $3 billion 
annually through Federal appropriations. Although the 
Foundation's budget accounts for only 4 percent of Federal 
research and development funding, NSF provides 25 percent of 
all Federal support to academic institutions for research. 
NSF's contribution is even greater in some disciplines--it 
provides nearly 50 percent of all Federal support for basic 
research in certain fields of science, including math, computer 
science, and environmental science. This funding supports 
approximately 19,000 research and education projects at more 
than 2,000 colleges, universities, elementary, and secondary 
schools, businesses and other research institutions. These 
grants are highly competitive. NSF funds only about 1/3 of the 
30,000 proposals it reviews annually.
    The importance of this investment cannot be exaggerated. 
Although, over the past decade, the private sector has outspent 
the Federal Government in scientific research and development, 
the Federal investment in basic science plays a preeminent role 
in industrial innovation in the United States. A recent review 
of American industrial patent applications revealed that the 
government or nonprofit foundations supported nearly 75 percent 
of the papers cited as providing the conceptual foundation for 
the new industrial innovation. The remaining 25 percent were 
funded by industry.

         NSF's Role in Math, Science and Engineering Education

    At the close of World War II, the Nation found itself with 
a wartime deficit of men and women systematically trained in 
mathematics, science, and engineering. The deficit of science 
and technology students who would have received bachelor's 
degrees had they not been drafted into the war effort was 
projected to exceed 150,000. The deficit of scientists with 
advance degrees in the fields of chemistry, engineering, 
geology, mathematics, physics, psychology, and the biological 
sciences was projected to exceed 17,000 by 1955.
    As a result of these projections, the Foundation's initial 
education activities focused upon undergraduate and graduate 
math, science, and engineering education. The National Science 
Foundation's first two institute grants provided professional 
development for 102 college mathematics and science teachers. 
Today the Education and Human Resources Directorate will spend 
more than $114 million for institutional reform, curriculum 
development, laboratory improvement, and training for high-
performance technology industries at colleges across the 
country. Over $78 million will be spent in support of graduate 
students. An additional $97 million is provided for graduate 
and undergraduate education by the research directorates. These 
numbers do not include the Foundation's significant investment 
in undergraduate and graduate education through research 
grants.
    Vannevar Bush, in ``The Endless Frontier'' noted that 
``improvement in the teaching of science is imperative, for 
students of latent scientific ability are particularly 
vulnerable to high school teaching which fails to awaken 
interest or to provide adequate instruction.'' By 1954, 
concerns about the quality of high school math and science 
instruction prompted NSF to support its first professional 
development institute for high school mathematics teachers. By 
1957, the number of institutes had grown to 96, providing 
professional development opportunities for over 6,500 teachers. 
The Soviet launch of Sputnik in October 1957 spurred further 
growth in these programs. The Education and Human Resources 
Directorate now spends more than $370 million each year in 
support of K-12 math and science education. Particular emphasis 
is given to teacher preparation, curriculum development and 
implementation, and systemic math and science education reform 
activities. The National Science Foundation provides 
approximately 30 percent of all Federal funding for mathematics 
and science education.

                        II. Purpose and Summary

    In reporting S.1046, the National Science Foundation 
Authorization Act of 1997, the committee strengthens our 
Nation's investment in basic research and math, science, and 
engineering education through provisions that: (1) increase 
NSF's investment in basic and applied research by 5.4 percent 
in fiscal year 1998 and 6.1 percent in fiscal year 1999; (2) 
increase NSF's investment in math, science and engineering 
education by 4.2 percent in fiscal year 1998 and 6 percent in 
fiscal year 1999; (3) provide full funding for the construction 
of the South Pole Research Facility; and (4) authorize NSF's 
participation in the Next Generation Internet project.

                III. Background and Need for Legislation

    The National Science Foundation Act of 1950 authorizes NSF 
to initiate and support basic research and to strengthen and 
support mathematics, science and engineering education at all 
levels. On October 14, 1994, the NSF released its strategic 
plan noting that the Foundation must respond to the challenges 
which are ``reshaping society's rationale for investments in 
science, mathematics, and engineering.'' This legislation 
authorizes the Foundation for fiscal years 1998 and 1999 and 
responds to the recommendations contained within the strategic 
plan.

              IV. Legislative History and Committee Action

    On July 22, 1997, S. 1046 was introduced by Senators 
Jeffords, Kennedy, Frist and Collins and referred to the 
Committee on Labor and Human Resources. On July 23, 1997, the 
committee met in executive session to consider S. 1046. A 
quorum being present, the committee moved to report S. 1046 
favorably by voice vote.

               V. Explanation of Bill and Committee Views

    The purpose of the National Science Foundation 
Authorization Act of 1997 is to clarify and strengthen the role 
of the Foundation and to provide support for basic scientific 
research and mathematics, science and engineering education.

             The Mission of the National Science Foundation

    The National Science Foundation Act of 1950 directs the 
Foundation to ``initiate and support basic scientific research 
and programs to strengthen scientific research potential and 
science education programs at all levels.'' Through its efforts 
to fulfill this mandate, NSF has made a significant 
contribution our Nation's military and economic security.
    The collapse of the Soviet Union provided an opportunity to 
review and evaluate many of the programs which were formed in 
the crucible of the Cold War. In 1994, at the request of the 
Congress, the National Science Board developed and endorsed a 
new strategic plan for the National Science Foundation entitled 
``NSF in a Changing World.'' This plan establishes three broad 
goals for the Foundation: (1) enable the United States to 
uphold a position of world leadership in all aspects of 
science, mathematics, and engineering; (2) promote the 
discovery, integration, dissemination, and employment of new 
knowledge in service to society; and, (3) achieve excellence in 
U.S. science, mathematics, engineering, and technology 
education at all levels. The committee strongly supports these 
goals.

               The Government Performance and Results Act

    The committee has worked closely with the National Science 
Foundation as part of its oversight activities in accordance 
with the Government Performance and Results Act (GPRA). The 
committee received its first GPRA proposal in March 1997 and a 
revised proposal in June 1997. To assist the Foundation, the 
committee has provided guidance regarding short-term and long-
term goals and strategies.
    The Foundation has made substantial progress in the 
development of the GPRA strategic plan over the past year. The 
committee applauds the broad objectives of the National Science 
Board but believes that the plan must be enhanced to ensure 
that the Foundation is evaluated on the basis of performance 
measures that are both realistic and consistent with its 
resources. The committee expects that further improvements will 
be made in the GPRA plan prior to submission of the President's 
fiscal year 1999 budget request.

               Third International Math and Science Study

    The Third International Math and Science Study (TIMSS) is a 
critical element of the Foundation's efforts to address the 
current crisis in math and science education. With data on over 
five hundred thousand students in 41 countries, TIMSS enables 
us to understand how children aged 9, 13, and 17 in the United 
States compare to their peers around the world in math and 
science. The survey provides a comprehensive scientific 
framework for analyzing world-class standards and includes 
standardized math and science tests, analysis of textbooks and 
curricula, video tapes, and ethnographic case studies. 
Preliminary TIMSS findings offer vital insight for reform.

              Coordination of Education Reform Initiatives

    In 1945, Vannevar Bush warned the Nation of the folly of a 
national science policy which neglected pre-college mathematics 
and science instruction. Fifty years later, the National 
Science Board's strategic plan reaffirmed that world leadership 
in science, mathematics, and engineering cannot be achieved 
without an education system that provides educational 
excellence at every level of schooling.
    Addressing our national need for math and science education 
reform will require commitment from teachers, students, 
parents, industry, State and local governments, Federal 
agencies, the academic community, and elementary and secondary 
schools across the country. The National Science Foundation can 
make a significant contribution to the national effort by 
bringing these groups together to form partnerships for 
systemic reform. Greater effort must be made, however, to 
coordinate the Foundation's programs and resources with the 
programs and resources of other Federal departments and 
agencies. Responses to TIMSS indicate that while Japanese 
teachers widely implement classroom strategies recommended by 
U.S. mathematics and science education researchers these 
recommendations frequently fail to enter classrooms in the 
United States. The committee will work closely with the 
Foundation to strengthen its partnerships with the Department 
of Education, particularly in the areas of curriculum reform 
and professional development, to ensure that innovations 
developed with Foundation support are made more widely 
available for use in the classroom.

                        Professional Development

    TIMSS clearly illustrates that teacher training and 
professional development must provide the basis for systemic 
education reform. Unlike their U.S. counterparts, Japanese and 
German teachers receive long-term, carefully structured 
apprenticeships before they assume full teaching 
responsibilities. American teachers receive less in-service 
training, frequently carry a heavier weekly teaching load, and 
are afforded fewer opportunities to discuss instructional and 
classroom related issues with their colleagues and supervisors.
    Domestic studies consistently demonstrate that money spent 
improving the knowledge and enhancing the skills of educators 
yield greater gains in student performance than any other 
single educational investment. NSF's Directorate for Education 
and Human Resources annually invests over $376 million in K-12 
education reform. Of this amount, nearly $103 million is 
invested in systemic reform initiatives and another $102 
million is invested in professional development programs. The 
committee strongly supports continued investment in K-12 math 
and science education and has increased the authorization 
levels to allow for renewed investment in the Nation's math and 
science teachers.

                Advanced Technological Education Program

    The committee strongly supports the Foundation's efforts to 
enhance science and engineering education at 2-year and 
community colleges. Rapid advances in science and technology 
require that all Americans become life-long learners in order 
to successfully compete in the world marketplace. These 
institutions educate over 10 million students each year and 
provide educational opportunities for the majority of students 
who seek post-secondary education and training. The ATE program 
supports curriculum and faculty development and encourages the 
creation of partnerships with 4 year colleges, secondary and 
elementary schools and industry.

                        Undergraduate Education

    The committee is concerned about wide-spread indications 
that federally sponsored research is shifting the focus of 
faculty away from undergraduate education and that students are 
bearing an increasing portion of the costs of university 
research through increases in tuition. The committee believes 
that research and undergraduate education are fully compatible 
and can and should be integrated. The committee urges the 
Foundation to continue its efforts to encourage the integration 
of math and science research with undergraduate education.

        Integrated Graduate Research and Education Traineeships

    The challenge of educating scientists, mathematicians, and 
engineers for the 21st century will require a new paradigm for 
graduate education and training. The committee commends the 
Foundation for its proposal for an agency-wide, 
multidisciplinary, graduate-training program. The goal of the 
Integrative Graduate Education and Research Training (IGERT) 
Program is to enable the development of innovative, research-
based, graduate education and training activities that will 
produce a diverse group of young scientists and engineers well 
prepared to meet the challenges of the workplace.

                   Facility and Administration Costs

    The committee is greatly concerned about the rising cost of 
the administration and delivery of scientific research and 
higher education. The College Board recently testified before 
the committee that over the past 15 years college costs have 
risen at double and triple the rates of inflation. Since 1980, 
tuition at private 4-year institutions has risen by 89 percent 
and tuition at public 4-year institutions has increased by 98 
percent. During the same period, median family income grew by a 
mere 5 percent. In response to concerns about the affordability 
of higher education, the Congress established the National 
Commission on the Cost of Higher Education to study the reasons 
for the rapid growth in college and university tuition and to 
make recommendations regarding policies which would reduce this 
rate of growth. The Commission is expected to report its 
findings to the committee in December 1997.
    In recent years university administrators have cited State 
and Federal regulatory burdens as well as the unreimbursed 
costs of conducting scientific research as contributors to the 
rapid growth in the cost of attending college. The President's 
budget reveals, however, that over one-quarter of the $12 
billion the government spends on research at colleges and 
universities and is used to pay for facilities and 
administration costs.
    In 1992, the Department of Health and Human Services 
inspector general testified that many schools charge the 
Federal Government higher indirect cost rates than they charge 
other research sponsors, including ``foundations, public 
corporations, and foreign Governments * * * Some schools waive 
the indirect cost rate, even for a $1 million contract with a 
publicly traded corporation. Schools with a Federal indirect 
cost rate as high as 77 percent waive or reduce the rate with 
other entities to as little as 6 or 10 percent * * * It appears 
clear * * * that schools may be looking to the Federal 
Government to cover the overhead associated with research 
performed for non-Federal and foreign entities.'' CBO suggests 
in its 1996 report entitled ``Reducing the Deficit'' that 
despite the stipulation contained within OMB Circular A-21 that 
the Federal Government will not subsidize the indirect costs of 
non-Federal research, universities may still charge lower 
overhead rates on non-Federal grants.
    The bill directs the Office of Science and Technology 
Policy (OSTP) to provide a report to the committee which 
analyzes the impact of previous changes to the facilities and 
administration costs paid to universities and affiliated 
research hospitals. The report shall compare the Federal 
facilities and administration reimbursement rates paid to 
universities and research hospitals, drawing upon available 
government and nongovernmental information, with facilities and 
administration rates (or their equivalents) paid to other 
entities that perform federally sponsored research and 
development.
    The report shall analyze the distribution of the Federal 
facilities and administration reimbursement rates paid to 
colleges, universities, and affiliated research hospitals by 
rate category, by Carnegie Classification, and by public or 
private sector. The report shall also analyze the impact that 
changes made in OMB Circular A-21 after 1992 have had upon 
facilities and administration costs reimbursements. The report 
shall include an analysis of the benefits and burdens of 
various options to reduce Federal facilities and administration 
reimbursement rates upon the Federal Government, research 
institutions, and researchers. The committee also instructs 
OSTP to provide recommendations on the creation of a database 
designed to improve oversight of Federal facilities and 
administration expenditures. The committee firmly believes that 
any savings resulting from changes in facilities and 
administration payments should be reinvested in university 
research.
    In preparing this report, OSTP may draw upon relevant 
Federal and non-Federal studies and should work with other 
relevant agencies, including the Office of Management and 
Budget, the Office of Naval Research, the Department of Health 
and Human Services, the National Science Foundation, and the 
National Institute of Health. The report is due by December 31, 
1998.

    Experimental Program To Stimulate Competitive Research (EPSCoR)

    The committee strongly supports the Experimental Program to 
Stimulate Competitive Research (EPSCoR) as a means of 
developing and maintaining a meaningful science and technology 
base throughout the Nation. The program, which has been funded 
at a viable level only over the past few years, has 
significantly strengthened the research capabilities of and 
improved educational and economic development opportunities in 
participating states. The committee believes it incumbent upon 
NSF to continue to work closely with the affected States to 
provide them the resources they need to meet their individual 
goals and objectives, to insure that they are full participants 
in the science and technology community, and to insure that the 
collaborations envisioned between the program and the research 
directorates come to fruition. The committee requests a report 
by December 1, 1998, on the results of these collaborations.

                              Internet II

    The committee applauds the Foundation's efforts to support 
the Internet II but is greatly concerned that current efforts 
to establish the vBNS network do not adequately include 
institutions from rural communities and small States. During 
the three preliminary grant rounds for access to vBNS, few 
rural institutions were funded and only one institution located 
in an EPSCoR State was funded. The committee is concerned that 
lack of access to the new high- speed networks will further 
impede efforts by EPSCoR States and rural institutions to 
strengthen their research capacity. The committee directs the 
Foundation to provide the committee with a plan indicating how 
it will involve EPSCoR institutions in the development of both 
vBNS and the Next Generation Internet. This report is due no 
later than December 1, 1998.

                     Internet Registration Services

    The National Science Foundation assumed responsibility for 
supporting Internet and domain name registration services at a 
time when it was anticipated that government agencies and 
education institutions would be the primary beneficiaries of 
the Internet. The Foundation has done an exemplary job of 
managing the registration services during a period of 
unexpected growth in the use of the Internet.
    Today the vast majority of entities seeking domain name 
registration services are commercial rather than research and 
education organizations. The Foundation is not, nor should it 
become, a regulatory agency with responsibilities for managing 
an increasingly commercial enterprise. The committee urges the 
administration to examine the proper role of the Federal 
Government and to transfer management of domain name 
registration services to an entity with appropriate experience 
and authority. The committee requests that the administration 
provide the Senate Labor and Human Resources Committee, the 
Senate Commerce Committee and the House Science Committee with 
a plan, no later than September 30, 1998, for transferring 
domain name registration responsibilities from the National 
Science Foundation to an appropriate entity.

                      Domain Name Registration Fee

    In January 1993, NSF entered into a 5-year cooperative 
agreement to provide domain name registration services to 
Internet users. In 1995, NSF amended the agreement to authorize 
the collection of fees for registration services. Under the 
current agreement, 30 percent of the revenue generated from 
domain name registration fees are deposited into an account for 
preservation and enhancement of the Internet. The account 
currently contains nearly $35 million. The committee believes 
that these funds should be utilized by the National Science 
Foundation, in addition to funds otherwise appropriated to the 
Foundation, in support of research and development activities 
associated with the Next Generation Internet. The committee 
expects that the Foundation will actively work to include 
EPSCoR institutions in these efforts.

                        Next Generation Internet

    The committee's bill authorizes a total of $30 million in 
Fiscal Year 1998 for NSF's participation in the interagency 
Next Generation Internet program--$10 million of this total is 
within the authorization provided for the Computer and 
Information Science and Engineering activity. The remaining $20 
million is contained as a discrete authorization within the 
bill.
    The Internet is an outgrowth of decades of Federal 
investment in research networks at the National Science 
Foundation and Department of Defense. This investment has 
stimulated much greater investment by industry and academia and 
helped spawn the large and rapidly growing world-wide system of 
networks we enjoy today. The Next Generation Internet is the 
next logical step in the cycle of evolving research, education, 
networking technologies and infrastructure necessary to support 
the U.S. research and education enterprise.
    Today's Internet faces challenges brought about by its own 
success. Technology designed for a network of thousands is 
laboring to serve multiple networks with millions of users. 
Scientists and engineers believe that with additional research, 
new technologies, protocols, and standards can be developed 
which will offer reliable, affordable, and secure information 
delivery at rates thousands of times faster than is current 
available. The committee strongly believes that the National 
Science Foundation is well suited to provide leadership for 
this initiative and encourages the Foundation to work closely 
with universities, industry, and the Federal research and 
education community.

                        Bioengineering Research

    The committee recognizes that the needs of our aging 
population demand a new understanding of the biomaterials used 
for medical implants and tissue replacements. To address these 
needs, the Directorates for Engineering and Mathematical and 
Physical Sciences are encouraged to promote interdisciplinary 
science and engineering research to develop new biomaterials 
which better interact with the human body.

                        Major Research Equipment

    The committee has authorized $155 million for the major 
research equipment activity. The MRE activity supports the 
construction of major research facilities that provide unique 
capabilities at the cutting edge of science and engineering. 
All of these projects are subject to long range planning, merit 
review, and National Science Board approval. This authorization 
will support the requests for completion of construction of the 
Laser Interferometer Gravitational Wave Observatory (LIGO), the 
start of prototype development for the Millimeter Array radio 
telescope, and the establishment of the Polar Cap Observatory 
at the magnetic north pole.

                    United States Antarctic Program

    The committee strongly supports the United States Antarctic 
program and recognizes the strategic and scientific importance 
of maintaining an active research presence in Antarctica. The 
United States Antarctic Program External Panel affirmed the 
importance of this program and expressed concern for the safety 
of the facilities. The authorization is consistent with the 
recommendations of the Panel and includes $95 million for the 
rehabilitation of the South Pole station and related 
infrastructure activities.

                Environmentally Conscious Manufacturing

    Manufacturing provides the foundation for long-term 
economic growth in the United States. Each 1000 new 
manufacturing jobs results in approximately 1300 new jobs in 
the service sector. Similarly, declines in the manufacturing 
sector produce significant declines in service sector 
employment. At the same time, however, new product 
manufacturing creates 87 percent of the waste produced in the 
United States, and every three months enough aluminum is 
discarded by consumers and industry to rebuild our Nation's 
commercial air fleet.
    In the past, environmental protection policies in the 
United States and abroad have emphasized the treatment and 
disposal of waste products rather than striving to improve the 
manufacturing processes that produced them. The current cost of 
complying with Federally mandated pollution-control and clean-
up programs has grown from $26 billion in 1972 to $115 billion 
in 1993. The European Community has responded to the growing 
shortage of landfill space by adopting laws requiring all 
manufacturers of consumer electronics to take back used 
electronic equipment. A second law dictates that no more than 5 
percent of a scrap automobile may go to a European landfill. 
Current recycling techniques, however, are only capable of 
reducing disposable waste to about 25 percent. Manufacturers 
must develop technologies to competitively comply with these 
requirements or be denied access to markets in the European 
Union.
    Recent studies have shown that remanufacturing conserves 85 
percent of the energy expended in the original manufacturing 
process and can reduce landfill volume by nearly 90 percent. 
The committee strongly encourages the Foundation to support 
basic multi disciplinary research activities at established 
remanufacturing research centers which will lead to the 
development of new technologies and processes.

                           VI. Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, August 8, 1997.
Hon. James M. Jeffords,
Chairman, Committee on Labor and Human Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1046, the National 
Science Foundation Authorization Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kathleen 
Gramp (for federal costs) and Pepper Santalucia (for the state 
and local impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

S. 1046--National Science Foundation Authorization Act of 1997

    Summary: S. 1046 would authorize appropriations for the 
National Science Foundation (NSF) for fiscal years 1998 and 
1999 and would revise various NSF planning, reporting, and 
administrative requirements. The bill also would direct the 
President's Office of Science and Technology Policy (OSTP) to 
submit a report on issues related to the federal government's 
reimbursement of grantee's indirect costs within one year after 
the date of enactment of this legislation.
    Assuming the appropriation of the authorized amounts, CBO 
estimates that enacting S. 1046 would result in additional 
discretionary spending of about $7 billion over the 1998-2002 
period. The legislation would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply. 
The legislation contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
(UMRA), and would not impose any costs on state, local or 
tribal governments.
    Estimated cost to the Federal Government: For the purposes 
of this estimate, CBO assumes that all amounts authorized in S. 
1046 will be appropriated by the start of each fiscal year and 
that outlays will follow historical spending patterns for NSF 
programs. This estimate includes about $300,000 for the OSTP 
study on indirect costs, assuming appropriation of the 
necessary amount. The estimated budgetary impact of S. 1046 is 
shown in the following table.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                        1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending under current law:                                                                                     
    Budget authority\1\.............................     3,270         0         0         0         0         0
    Estimated outlays...............................     3,120     2,322       754       204       102        25
Proposed changes:                                                                                               
    Authorization level.............................         0     3,506     3,636         0         0         0
    Estimated outlays...............................         0     1,041     2,738     2,301       719       209
Spending under S. 1046:                                                                                         
    Authorization level\1\..........................     3,270     3,506     3,636         0         0         0
    Estimated outlays...............................     3,120     3,363     3,492     2,505       821       234
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 level is the amount appropriated for that year.                                                    

    The costs of this legislation fall within budget functions 
050 (national defense) and 250 (general science, space, and 
technology).
    Pay-as-you-go considerations: None
    Estimated impact on State, local, and tribal governments: 
The bill contains no intergovernmental mandates as defined in 
UMRA. However, the bill would provide financial support to 
certain state government entities. Currently, about $2.2 
billion of NSF's budget goes to academic institutions, 
including public universities, to fund research, education and 
training, and equipment acquisition. By reauthorizing NSF's 
programs, the bill would allow this assistance to continue.
    Estimated impact on the private sector: S. 1046 would 
impose no new private-sector mandates as defined in UMRA.
    Previous CBO estimate: On April 18, 1997, CBO transmitted a 
cost estimate for H.R. 1273, the National Science Foundation 
Authorization Act of 1997, as ordered reported by the House 
Committee on Science on April 16, 1997. S. 1046 would allocate 
funding among NSF's program areas differently than H.R. 1273, 
and would authorize $22 million more for NSF's activities in 
1999 than the House bill.
    Estimate prepared by: Federal Costs: Kathleen Gramp; Impact 
on State, Local and Tribal Governments: Pepper Santalucia.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    VII. Regulatory Impact Statement

     The committee has determined that there will be only a 
negligible increase in the regulatory burden of paperwork as a 
result of this legislation.

             VIII. Application of Law to Legislative Branch

     S. 1046 reauthorizes the National Science Foundation, and 
as such has no application to the legislative branch.

                    IX. Section-by-Section Analysis

     Section. 1. Short Title.--The bill may be referred to as 
the ``National Science Foundation Authorization Act of 1997.''
     Section. 2. Definitions.--Defines the key terms used in 
the act, including: Director, Foundation, Board, and United 
States.

           Title I--National Science Foundation Authorization

 Section 101. Findings; Core strategies.

    Contains the Congressional findings and describes core 
strategies for fulfilling the mission and objectives of the 
National Science Foundation.

Section 102. Authorization of appropriations

    (a)(1) Authorizes $3,505,630,000 for the National Science 
Foundation (NSF) for fiscal year 1998 of which:
          (A) $2,563,330,000 is authorized to be appropriated 
        for Research and Related Activities, of which:
                  (i) Biological Sciences, $330,820,000.
                  (ii) Computer and Information Science and 
                Engineering, $289,170,000.
                  (iii) Engineering, $360,470,000.
                  (iv) Geosciences, $452,610,000.
                  (v) Mathematical and Physical Sciences, 
                $715,710,000.
                  (vi) Social, Behavioral, and Economic 
                Sciences, $129,660,000.
                  (vii) United States Polar Research Programs, 
                $165,930,000.
                  (viii) United States Antarctic Logistical 
                Support Activities, $62,600,000.
                  (ix) Critical Technologies Institute, 
                $2,730,000.
                  (x) Next Generation Internet, $20,000,000.
          (B) Education and Human Resources, $645,500,000.
          (C) Major Research Equipment, $155,000,000.
          (D) Salaries & Expenses, $136,950,000.
          (E) Office of Inspector General, $4,850,000.
    (b) Authorizes $3,636,245,000 to be appropriated for the 
National Science Foundation for fiscal year 1999 as follows:
          (A) Research & Related Activities, $2,720,000,000 of 
        which $25,000,000 is for the Next Generation Internet.
          (B) Education and Human Resources, $684,245,000.
          (C ) Major Research Equipment, $90,000,000.
          (D) Salaries and Expenses, $137,000,000.
          (E) Office of Inspector General, $5,000,000.

Section 103. Proportional reduction of research and related activities

     If the amount appropriated pursuant to the Authorization 
is less than the amount authorized, the amount available for 
each of the activities described in clauses (I-x) shall be 
reduced by the same proportion.

Section 104. Consultation and representation expenses

    From appropriations made under authorizations provided in 
this act, not more than $10,000 may be used in each fiscal year 
for official consultation, representation, or other 
extraordinary expenses at the discretion of the Director. The 
determination of the Director shall be final and conclusive 
upon the accounting officers of the government.

                      Title II--General Provisions

Section 201. National research facilities

     (a) Facilities plan. The Director shall annually provide 
Congress with a plan for the proposed construction of, and 
repair and upgrades to, national research facilities. The plan 
shall include cost estimates for the year in which the plan is 
submitted to Congress and for not fewer than the four 
succeeding years.
     (b) Status of facilities under construction. The report 
shall provide a status report for each uncompleted construction 
project with current and original schedules for completion and 
current and estimated costs for construction.
     (c ) Limitation of obligation of unauthorized 
appropriations. Only funds which are specifically authorized to 
be appropriated shall be obligated for any major research 
equipment project unless the total estimated cost is less than 
$50,000.

Section 202. Administrative amendments

     Amends sections of the National Science Foundation Act of 
1950, the National Science Foundation Authorization Act of 
1976, and the National Science Foundation Act of 1988.

Section 203. Indirect costs

     (a) Matching funds. Matching funds required by the 
Academic Research Facilities Modernization Act of 1988 shall 
not be considered facilities cost for purposes of determining 
indirect cost rates.
     (b) Report. The Director of the Office of Science and 
Technology Policy shall prepare a report analyzing the impact 
of recent and proposed changes in OMB Circular A-21 on 
facilities and administration reimbursement rates for 
scientific research conducted at colleges, universities, and 
research hospitals.

Section 204. Financial disclosure

     Clarifies that individuals temporarily employed by or at 
the Foundation shall be subject to the same financial 
disclosure requirements imposed under the Ethics in Government 
Act of 1978 as are permanent employees of the Foundation.

Section 205. Prohibition on lobbying

    Prohibits the use of funds authorized by this act for any 
activity whose purpose is to influence legislation pending 
before the Congress. This section does not prevent employees of 
the departments and agencies from communicating with Members of 
Congress to conduct public business.

Section 206. Notice

    (a) Notice of Reprogramming. If any funds authorized under 
this act, or amendments made by or to this act, are subject to 
reprogramming which requires notice to be given to the 
Appropriations Committees of the House of Representatives and 
the Senate, notice of such action shall be concurrently 
provided to the Committees on Labor and Human Resources and 
Commerce, Science and Transportation of the Senate, and the 
Committee on Science of the House of Representatives.
     (b) Notice of Reorganization. If any program, project, or 
activity of the National Science Foundation is preparing to 
undergo any major reorganization, the Director of the National 
Science Foundation shall notify the Senate Committees on Labor 
and Human Resources, Commerce, Science, and Transportation, and 
Appropriations, as well as the House Committees on Science and 
Appropriations no later than 15 days prior to such 
reorganization.

Section 207. Enhancement of science and mathematics programs

     The National Science Foundation is directed to donate 
surplus computers and other research equipment to elementary 
and secondary education schools to enhance the science and 
mathematics programs of these schools. The Director shall 
provide an annual report to the Senate Committee on Labor and 
Human Resources, the Senate Committee on Commerce, Science, and 
Transportation, and the Committee on Science of the House of 
Representatives regarding surplus equipment donations made by 
the Foundation.

                       X. Changes in Existing Law

    In compliance with rule XXVI paragraph 12 of the Standing 
Rules of the Senate, the following provides a print of the 
statute or the part or section thereof to be amended or 
replaced (existing law proposed to be omitted is enclosed in 
black brackets, new matter is printed in italic, existing law 
in which no change is proposed is shown in roman):

           NATIONAL SCIENCE FOUNDATION ACT OF 1950 AMENDMENTS

          * * * * * * *

                      functions of the foundation

    Sec. 3. (a) The Foundation is authorized and directed--
          * * * * * * *
    (g) * * *
          * * * * * * *
    [(g) In carrying out subsection (a)(4), the Foundation is 
authorized to foster and support access by the research and 
education communities to computer networks which may be used 
substantially for purposes in addition to research and 
education in the sciences and engineering, if the additional 
uses will tend to increase the overall capabilities of the 
networks to support such research and education activities.]
          * * * * * * *

                         national science board

    Sec. 4. (a) * * *
          * * * * * * *
    (g) The Board may, with the concurrence of a majority of 
its members, permit the appointment of a staff consisting of 
not more than five professional staff members and such clerical 
staff members as may be necessary. Such staff shall be 
appointed by the Director and assigned at the direction of the 
Board. The professional members of such staff may be appointed 
without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service, and 
the provisions of chapter 51 of such title relating to 
classification, and compensated at a rate not exceeding [the 
appropriate rate provided for individuals in grade GS-18 of the 
General Schedule under section 5332] the maximum rate payable 
under section 5376 of such title, as may be necessary to 
provide for the performance of such duties as may be prescribed 
by the Board in connection with the exercise of its powers and 
functions under this Act. Each appointment under this 
subsection shall be subject to the same security requirements 
as those required for personnel of the Foundation appointed 
under section 14(a).
          * * * * * * *
    (k) * * *
          * * * * * * *
    [(k)] (l) Members of the Board shall be required to file a 
financial disclosure report under title II of the Ethics in 
Government Act of 1978 (5 U.S.C. App. 92 Stat. 1836), except 
that such reports shall be held confidential and exempt from 
any law otherwise requiring their public disclosure.
          * * * * * * *

                       director of the foundation

    Sec. 5. (a) * * *
          * * * * * * *
    (e)(1) * * *
          * * * * * * *
    [(2) Any delegation of authority or imposition of 
conditions under the preceding sentence shall be effective only 
for such period of time, not exceeding two years, as the Board 
may specify, and shall be promptly published in the Federal 
Register and reported to the Committees on Labor and Human 
Resources and Commerce, Science, and Transportation of the 
Senate and the Committee on Science, Space, and Technology of 
the House of Representatives. On October 1 of each odd-numbered 
year the Board shall submit to the Congress a concise report 
which explains and justifies any actions taken by the Board 
under this subsection to delegate its authority or impose 
conditions within the preceding two years. The provisions of 
this subsection shall cease to be effective at the end of 
fiscal year 1989.]
    (2) Any delegation of authority or imposition of conditions 
under paragraph (1) shall be promptly published in the Federal 
Register and reported to the Committee on Labor and Human 
Resources, and the Committee on Commerce, Science, and 
Transportation, of the Senate and the Committee on Science of 
the House of Representatives.
          * * * * * * *

                        miscellaneous provisions

    Sec. 14. (a)(1) * * *
          * * * * * * *
    (c) The members of the Board and the members of each 
special commission [shall receive] shall be entitled to receive 
compensation for each day engaged in the business of the 
Foundation at a rate fixed by the Chairman but not exceeding 
[the rate specified for the daily rate for GS-18 of the General 
Schedule under section 5332] the maximum rate payable under 
section 5376 of title 5, United States Code, and shall be 
allowed travel expenses as authorized by section 5703 of title 
5, United States Code. For the purposes of determining the 
payment of compensation under this subsection, the time spent 
in travel by any member of the Board or any member of a special 
commission shall be deemed as time engaged in the business of 
the Foundation. Members of the Board and members of special 
commissions may waive compensation and reimbursement for 
traveling expenses.
          * * * * * * *

                          security provisions

    Sec. 15. (a) The Foundation shall not support any research 
or development activity in the field of nuclear energy, nor 
shall it exercise any authority pursuant to section 11(e) in 
respect to that field, without first having obtained the 
concurrence of the [Atomic Energy Commission] Secretary of 
Energy that such activity will not adversely affect the common 
defense and security. To the extent that such activity involves 
restricted data as defined in the Atomic Energy Act of 1954 the 
provisions of that Act regarding the control of the 
dissemination of restricted data and the security clearance of 
those individuals to be given access to restricted data shall 
be applicable. Nothing in this Act shall supersede or modify 
any provision of the Atomic Energy Act of 1954.
          * * * * * * *

     NATIONAL SCIENCE FOUNDATION AUTHORIZATION ACT, 1976 AMENDMENTS

          * * * * * * *

                      TITLE 42--UNITED STATES CODE

          * * * * * * *

                         Alan T. Waterman Award

    Sec. 1881a. (a) Establishment; Amounts; Terms.--The 
National Science Foundation is authorized to establish the Alan 
T. Waterman Award for research or advanced study in the 
mathematical, physical, medical, biological, engineering, 
behavioral, [social,] social, or other sciences. The award 
authorized by this section shall consist of a suitable medal 
and a grant to support further research or study by the 
recipient. The National Science Board will periodically 
establish the amounts and terms of such grants under this 
section.
          * * * * * * *

    NATIONAL SCIENCE FOUNDATION AUTHORIZATION ACT OF 1988 AMENDMENTS

          * * * * * * *

                      TITLE 42--UNITED STATES CODE

          * * * * * * *

              presidential awards for teaching excellence

    Sec. 1881b. (1)(A) * * *
          * * * * * * *
          (i) * * *
          * * * * * * *
          [(v) from the United States Department of Defense 
        Dependents' School.]
          (v) from schools established outside the several 
        States and the District of Columbia by any agency of 
        the Federal Government for dependents of the employees 
        of such agency.
          * * * * * * *
    (3)(A) Funds to carry out this subsection for any fiscal 
year shall be made available from amounts appropriated pursuant 
to annual authorization of appropriations for the Foundation 
for [Science and Engineering Education] Education and Human 
Resources.
          * * * * * * *

        SCIENCE AND ENGINEERING EQUAL OPPORTUNITY ACT AMENDMENTS

          * * * * * * *

                      TITLE 42--UNITED STATES CODE

          * * * * * * *

    [minorities in science and engineering; support of program and 
   activities by foundation for promotion, etc.; report to congress] 
participation in science and engineering of minorities and persons with 
                              disabilities

    Sec. 1885b. (a) * * *
          * * * * * * *
    [(b) By September 30, 1981, the Director, with the advice 
and assistance of the Committee on Equal Opportunities in 
Science and Technology established in section 1885c of this 
title, shall prepare and transmit to the Committee on Labor and 
Human Resources of the Senate and the Committee on Science and 
Technology of the House of Representatives a report proposing a 
comprehensive and continuing program at the Foundation to 
promote the full participation of minorities in science and 
engineering. Such report shall contain budgetary and 
legislative recommendations for the carrying out of such 
program by the Foundation.]
    (b) The Foundation is authorized to undertake or support 
programs and activities to encourage the participation of 
persons with disabilities in the science and engineering 
professions.
          * * * * * * *

      committee on equal opportunities in science and engineering

    Sec. 1885c. (a) Establishment; Purposes.--There is 
established within the Foundation a Committee on Equal 
Opportunities in Science and Engineering (hereinafter referred 
to as the ``Committee''). The Committee shall provide advice to 
the Foundation concerning (1) the implementation of the 
provisions of sections 1885 to 1885d of this title and (2) 
other policies and activities of the Foundation to encourage 
full participation of women, [minorities, and other groups 
currently underrepresented in scientific] minorities, and 
persons with disabilities in scientific, engineering, and 
professional fields.
    (b) Membership; Chairperson; Term of Members.--Each member 
of the Committee shall be appointed by the Director [with the 
concurrence of the National Science Board]. [The Chairperson of 
the National Science Board Committee on Minorities and Women 
shall be an ex officio member of the Committee.] In addition, 
the Chairman of the National Science Board may designate a 
member of the Board as a member of the Committee. Members of 
the Committee shall be appointed to serve for a three-year 
term, and may be reappointed to serve one additional term of 
three years.
    [(c) Subcommittee on Women in Science and Engineering; 
Purposes; Membership.--There shall be a subcommittee of the 
Committee which shall be known as the Subcommittee on Women in 
Science and Engineering. The Subcommittee on Women in Science 
and Engineering shall have responsibility for all Committee 
matters relating to (1) the participation in and opportunities 
for the education, training, and research of women in science 
and engineering and (2) the impact of science and engineering 
on women. The Subcommittee shall be composed of all the women 
members of the Committee and such other members of the 
Committee as the Committee may designate.
    [(d) Subcommittee on Minorities in Science and Engineering; 
Purposes; Membership.--There shall be a Subcommittee of the 
Committee which shall be known as the Subcommittee on 
Minorities in Science and Engineering. The Subcommittee on 
Minorities in Science and Engineering shall have responsibility 
for all Committee matters relating to (1) the participation in 
and opportunities for education, training, and research for 
minorities in science and engineering and (2) the impact of 
science and engineering on minorities. The Subcommittee shall 
be composed of all minority members of the Committee and such 
other members of the Committee as the Committee may designate.]
    ``(c) The Committee shall be responsible for reviewing and 
evaluating all Foundation matters relating to opportunities for 
the participation in, and the advancement of, women, 
minorities, and persons with disabilities in education, 
training, and science and engineering research programs.'';
    [(e) (d) Additional Standing or Ad Hoc Subcommittees.--The 
Committee may organize such [additional] standing or ad hoc 
subcommittees as the Committee finds appropriate.
    [(f) (e) Biennial Report.--Every two years, the Committee 
shall prepare and transmit to the Director a report on its 
activities during the previous two years and proposed 
activities for the next two years. The Director shall transmit 
to Congress the report, unaltered, together with such comments 
as the Director deems appropriate.
          * * * * * * *