[Senate Report 108-181]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 357
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-181
_______________________________________________________________________

                                     

                                                       Calendar No. 357


               TECHNOLOGY ADMINISTRATION REAUTHORIZATION

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1395




                October 30, 2003.--Ordered to be printed

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred eighth congress
                             first session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                J0HN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey
           Jeanne Bumpus, Staff Director and General Counsel
                   Ann Begeman, Deputy Staff Director
                  Robert W. Chamberlin, Chief Counsel
      Kevin D. Kayes, Democratic Staff Director and Chief Counsel
                Gregg Elias, Democratic General Counsel
                                                       Calendar No. 357
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-181

======================================================================

 
               TECHNOLOGY ADMINISTRATION REAUTHORIZATION

                                _______
                                

                October 30, 2003.--Ordered to be printed

                                _______
                                

       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1395]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1395) to authorize 
appropriations for the Technology Administration of the 
Department of Commerce for fiscal years 2004 through 2008, 
having considered the same, reports favorably thereon with 
amendments and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

    The purpose of the bill, as amended, is to authorize the 
Technology Administration of the U.S. Department of Commerce 
for Fiscal Year (FY) 2004 through FY 2008.

                          Background and Needs

    The U.S. Department of Commerce's Technology Administration 
(TA) is chartered to provide advice on technology policy, 
support technology development, and disseminate technology 
information.
    The TA is comprised of the Office of Technology Policy 
(OTP), the Office of Space Commercialization (OSC), the 
National Institute of Standards and Technology (NIST), and the 
National Technical Information Service (NTIS).
    The Office of the Under Secretary for Technology is 
responsible for providing broad policy guidance to the 
Secretary of Commerce and the TA's component agencies, and 
serving as an advocate for innovation and industrial 
competitiveness within and outside of the Federal government. 
The Under Secretary serves on the Executive Committee of the 
Committee on Technology within the President's National Science 
and Technology Council, coordinates the civilian technology 
efforts of Federal agencies, and helps to shape Federal 
civilian R&D priorities based upon the needs of industry. The 
Under Secretary also is counsel to the Secretary of Commerce on 
all matters affecting innovation and coordinates with 
counterparts in the trade and economic agencies to create 
unified, integrated technology policies.
    The Under Secretary for Technology oversees the TA and 
utilizes the analytical, outreach, and policy development 
expertise of the Office of Technology Policy and the Office of 
Space Commercialization. The Office of Technology Policy is 
charged with conducting analysis, formulating policy, and 
advocating national policies to maximize technology's 
contribution to United States competitiveness and economic 
growth. The Office of Space Commercialization was created in 
statute by the Technology Administration Act of 1998 (P.L. 105-
309) and serves as the principal unit for the coordination of 
space-related issues, programs, and initiatives within the 
Department of Commerce.
    The National Institute of Standards and Technology (NIST) 
works with United States industries to address technology 
needs, delivering results shared among companies, industries, 
and consumers. In addition to its core functions to develop and 
promote measurements, standards, and technology to enhance 
productivity and facilitate trade, NIST also conducts three 
extramural programs: the Advanced Technology Program, to 
stimulate the development of high risk, potentially high pay-
off civilian technologies by United States firms; the 
Manufacturing Extension Partnership, to help smaller businesses 
adopt new manufacturing and management technologies; and the 
Malcolm Baldrige National Quality Program, to help United 
States industries improve the quality of their operations by 
providing clear standards and benchmarks of quality.
    The National Technical Information Service (NTIS) collects 
and disseminates scientific, technical, engineering, and 
related business information, serving more than 60,000 
customers annually.
    The President's FY 2004 budget request for the TA is as 
follows: the Office of the Under Secretary/Office of Technology 
Policy--$8.0 million; NIST--$496.8 million; and the NTIS--$0 
(NTIS is required by statute to be self-sufficient).

                          Legislative History

    S. 1395 was introduced on July 11, 2003, by Senators McCain 
and Brownback, and was referred to the Committee on Commerce, 
Science, and Transportation (the Committee). A hearing on the 
Technology Administration and its programs was held during the 
107th Congress, on April 16, 2002.
    On July 17, 2003, the Committee met in open executive 
session and, by a voice vote, ordered S. 1395 reported with two 
amendments. An amendment offered by Senators McCain and 
Hollings increases funding for the Construction and Maintenance 
activities at NIST. Another amendment, offered by Senator 
Hollings, adds funding for the Advanced Technology Program at 
NIST.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 27, 2003.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1395, the Technology 
Administration Authorization Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Melissa 
Zimmerman.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 1395--Technology Administration Authorization Act of 2003

    Summary: S. 1395 would authorize the appropriation of 
specific amounts for fiscal years 2004 through 2008 for various 
technology programs administered by the Department of Commerce 
(DOC). Specifically, the bill would authorize appropriations 
for the National Institute of Standards and Technology (NIST), 
the office of the Under Secretary for Technology, and the 
Office of Technology Policy.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing S. 1395 would cost about $3.6 
billion over the 2004-2008 period. CBO estimates that enacting 
this bill would have no effect on direct spending or revenues.
    S. 1395 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would benefit state, local, and tribal governments.
    Estimated cost to the Federal government: The estimated 
budgetary impact of S. 1395 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit). For this estimate, CBO assumes 
that amounts authorized will be appropriated near the beginning 
of each fiscal year and that outlays will follow historical 
spending patterns for the affected programs.

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2003     2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending for DOC Technology Programs Under Current Law:
    Budget Authority......................................      718        0        0        0        0        0
    Estimated Outlays.....................................      699      370      144       56       20        7
Proposed Changes:
    Authorization Level...................................        0      825      907      884      993      990
    Estimated Outlays.....................................        0      370      628      787      891      964
Spending for DOC Technology Programs Under S. 1395:
    Authorization Level...................................      718      825      907      884      993      990
    Estimated Outlays.....................................      699      740      772      843      911      971
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated for that year.

    Intergovernmental and private sector impact: S. 1395 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would benefit state, local, and 
tribal governments by authorizing a total of $4 million for a 
Teacher Science and Technology Enhancement Institute at the 
National Institute for Standards and Technology that would 
provide teachers, many from public schools, with training in 
science and technology.
    Estimate prepared by: Federal costs: Melissa E. Zimmerman; 
impact on state, local, and tribal governments: Sara Puro; 
impact on the private sector: Paige Paper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

    S. 1395, as reported, would reauthorize appropriations for 
the TA for fiscal years 2004, 2005, 2006, 2007 and 2008. TA and 
its sub-agencies conduct measurements and standards activities 
in support of United States industries and manages technology 
grant and assistance programs to increase United States 
competitiveness. The Committee believes that the bill will not 
subject any individuals or businesses affected by the bill to 
any additional regulation.

                            ECONOMIC IMPACT

    This legislation would not have an adverse impact on the 
Nation. This authorization would allow NIST to continue its 
support of United States industries by conducting its standards 
and measurements setting functions. NIST grants and programs 
would continue to assist United States businesses in being more 
competitive in international markets and would continue to 
benefit the general public through contributing to the economic 
growth of the country from investments in new science and 
technology ventures that otherwise would not be undertaken.

                                PRIVACY

    This legislation would not have a negative impact on the 
personal privacy of individuals.

                               PAPERWORK

    This legislation would not increase the paperwork 
requirement for private individuals or businesses. The bill 
would require the Secretary of Commerce to report, within 90 
days after the date of enactment, to the Senate Committee on 
Commerce, Science, and Transportation and the House of 
Representatives Committee on Science, on the financial status 
of the NTIS. This legislation also would require NIST to submit 
a Facilities and Construction plan within 6 months after 
enactment to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Science.

                      Science-by-Section Analysis


Section 1. Short title

    This section would cite the title as the ``Technology 
Administration Authorization Act of 2003''.

Section 2. Definitions

    This section would define key terms in the Act, including 
``Director'' and ``Secretary''.

Section 3. Authorization of appropriations for scientific and technical 
        research and services

    Subsection (a) would authorize the following amounts for 
the Scientific and Technical Research and Services laboratory 
activities of NIST: $387,621,000 for FY 2004, of which 
$5,795,000 shall be for the National Quality Program; 
$410,878,000 for FY 2005, of which $5,969,000 shall be for the 
National Quality Program; $435,530,000 for FY 2006, of which 
$6,148,000 shall be for the National Quality Program; 
$461,662,000 for FY 2007, of which $6,332,000 shall be for the 
National Quality Program; and $489,362,000 for FY 2008, of 
which $6,522,000 shall be for the National Quality Program.
    Subsection (b) would authorize the following amounts for 
construction and maintenance of facilities at NIST: $81,000,000 
for FY 2004; $129,000,000 for FY 2005; $71,000,000 for FY 2006; 
$142,000,000 for FY 2007; and $100,000,000 for FY 2008. This 
subsection also would require NIST to submit a Facilities and 
Construction plan within 6 months after enactment to the Senate 
Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Science.
    Subsection (c) would authorize the following amounts for 
the Teacher Science and Technology Enhancement Institute 
Program at NIST: $750,000 for FY 2004; $773,000 for FY 2005; 
$796,000 for FY 2006; $820,000 for FY 2007; and $844,000 for FY 
2008.
    Subsection (d) would authorize the following amounts for 
the Manufacturing Extension Partnership Program at NIST: 
$107,000,000 for FY 2004; $110,210,000 for FY 2005; 
$113,516,000 for FY 2006; $116,921,000 for FY 2007; and 
$120,429,000 for FY 2008.
    Subsection (e) would authorize the following amounts for 
the Advanced Technology Program at NIST: $240,000,000 for FY 
2004; $247,200,000 for FY 2005; $254,616,000 for FY 2006; 
$262,254,000 for FY 2007; and $270,122,000 for FY 2008.

Section 4. Authorizations for the Office of the Undersecretary for 
        Technology

    Subsection (a) would authorize the following funds for the 
Office of the Under Secretary for Technology and the Office of 
Technology Policy: $8,015,000 for FY 2004; $8,255,000 for FY 
2005; $8,503,000 for FY 2006; $8,758,000 for FY 2007; and 
$9,021,000 for FY 2008.
    Subsection (b) would authorize the following funds for the 
Office of Space Commercialization: $500,000 for FY 2004; 
$515,000 for FY 2005; $530,000 for FY 2006; $546,000 for FY 
2007; and $563,000 for FY 2008.

Section 5. Amendment to the Stevenson-Wydler Act

    This section would amend the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3711a(c)) to allow nonprofit 
organizations that primarily provide services to qualify for 
the Malcolm Baldrige National Quality Award and would strike 
the two award limit applicable to any subcategory within any 
one-year period.

Section 6. Financial Status of the National Technical Information 
        Service

    This section would require the Secretary of Commerce to 
report, within 90 days after the date of enactment, to the 
Senate Committee on Commerce, Science, and Transportation and 
the House of Representatives Committee on Science, on the 
financial status of the National Technical Information Service.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

           STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980


SEC. 17. MALCOLM BALDRIGE NATIONAL QUALITY AWARD.

                           [15 U.S.C. 3711A]

    (a) Establishment.--There is hereby established the Malcolm 
Baldrige National Quality Award, which shall be evidenced by a 
medal bearing the inscriptions ``Malcolm Baldrige National 
Quality Award'' and ``The Quest for Excellence.'' The medal 
shall be of such design and materials and bear such additional 
inscriptions as the Secretary may prescribe.
    (b) Making and Presentation of Award.--
          (1) The President (on the basis of recommendations 
        received from the Secretary), or the Secretary, shall 
        periodically make the award to companies and other 
        organizations which in the judgment of the President or 
        the Secretary have substantially benefitted the 
        economic or social well-being of the United States 
        through improvements in the quality of their goods or 
        services resulting from the effective practice of 
        quality management, and which as a consequence are 
        deserving of special recognition.
          (2) The presentation of the award shall be made by 
        the President or the Secretary with such ceremonies as 
        the President or the Secretary may deem proper.
          (3) An organization to which an award is made under 
        this section, and which agrees to help other American 
        organizations improve their quality management, may 
        publicize its receipt of such award and use the award 
        in its advertising, but it shall be ineligible to 
        receive another such award in the same category for a 
        period of 5 years.
    (c) Categories in Which Award May Be Given.--
          (1) Subject to paragraph (2), separate awards shall 
        be made to qualifying organizations in each of the 
        following categories--
                  (A) Small businesses.
                  (B) Companies or their subsidiaries.
                  (C) Companies and nonprofit organizations 
                which primarily provide services.
                  (D) Health care providers.
                  (E) Education providers.
          (2) The Secretary may at any time expand, subdivide, 
        or otherwise modify the list of categories within which 
        awards may be made as initially in effect under 
        paragraph (1), and may establish separate awards for 
        other organizations including units of government, upon 
        a determination that the objectives of this section 
        would be better served thereby; except that any such 
        expansion, subdivision, modification, or establishment 
        shall not be effective unless and until the Secretary 
        has submitted a detailed description thereof to the 
        Congress and period of 30 days has elapsed since that 
        submission.
          [(3) Not more than two awards may be made within any 
        subcategory in any year, unless the Secretary 
        determines that a third award is merited and can be 
        given at no additional cost to the Federal Government 
        (and no award shall be made within any category or 
        subcategory if there are no qualifying enterprises in 
        that category or subcategory).]
    (d) Criteria for Qualification.--
          (1) An organization may qualify for an award under 
        this section only if it--
                  (A) applies to the Director of the National 
                Institute of Standards and Technology in 
                writing, for the award.
                  (B) permits a rigorous evaluation of the way 
                in which its business and other operations have 
                contributed to improvements in the quality of 
                goods and services, and
                  (C) meets such requirements and 
                specifications as the Secretary, after 
                receiving recommendations from the Board of 
                Overseers established under paragraph (2)(B) 
                and the Director of the National Institute of 
                Standards and Technology determines to be 
                appropriate to achieve the objectives of this 
                section. In applying the provisions of 
                subparagraph (C) with respect to any 
                organization, the Director of the National 
                Institute of Standards and Technology shall 
                rely upon an intensive evaluation by a 
                competent board of examiners which shall review 
                the evidence submitted by the organization and, 
                through a site visit, verify the accuracy of 
                the quality improvements claimed. The 
                examination should encompass all aspects of the 
                organization's current practice of quality 
                management, as well as the organization's 
                provision for quality management in its future 
                goals. The award shall be given only to 
                organizations which have made outstanding 
                improvements in the quality of their goods or 
                services (or both) and which demonstrate 
                effective quality management through the 
                training and involvement of all levels of 
                personnel in quality improvement.
          (2)(A) The Director of the National Institute of 
        Standards and Technology shall, under appropriate 
        contractual arrangements, carry out the Director's 
        responsibilities under subparagraphs (A) and (B) of 
        paragraph (1) through one or more broad-based nonprofit 
        entities which are leaders in the field of quality 
        management and which have a history of service to 
        society.
          (B) The Secretary shall appoint a board of overseers 
        for the award, consisting of at least five persons 
        selected for their pre-eminence in the field of quality 
        management. This board shall meet annually to review 
        the work of the contractor or contractors and make such 
        suggestions for the improvement of the award process as 
        they deem necessary. The board shall report the results 
        of the award activities to the Director of the National 
        Institute of Standards and Technology each year, along 
        with its recommendations for improvement of the 
        process.
    (e) Information and Technology Transfer Program.--The 
Director of the National Institute of Standards and Technology 
shall ensure that all program participants receive the complete 
results of their audits as well as detailed explanations of all 
suggestions for improvements. The Director shall also provide 
information about the awards and the successful quality 
improvement strategies and programs of the award-winning 
participants to all participants and other appropriate groups.
    (f) Funding.--The Secretary is authorized to seek and 
accept gifts from public and private sources to carry out the 
program under this section. If additional sums are needed to 
cover the full cost of the program, the Secretary shall impose 
fees upon the organizations applying for the award in amounts 
sufficient to provide such additional sums. The Director is 
authorized to use appropriated funds to carry out 
responsibilities under this Act.
    (g) Report.--The Secretary shall prepare and submit to the 
President and the Congress, within 3 years after the date of 
the enactment of this section, a report on the progress, 
findings, and conclusions of activities conducted pursuant to 
this section along with recommendations for possible 
modifications thereof.

                                
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