DEVELOPMENT OF CRITICAL TECHNOLOGIES.

SEC. 821. DEVELOPMENT OF CRITICAL TECHNOLOGIES. (a) Enactment of New Title 10 Chapter for Critical Technology Provisions.—Part IV of subtitle A of title 10, United States Code, is amended by inserting after chapter 149 the following new chapter 150: “CHAPTER 150—DEVELOPMENT OF DUAL-USE CRITICAL TECHNOLOGIES “Sec. “2521.Definitions. “2522.Annual defense critical technologies plan. “2523.Defense dual-use critical technology partnerships. “2524.Critical technology application centers assistance program. “2525.Office for Foreign Defense Critical Technology Monitoring and Assessment. “2526. Overseas foreign critical technology monitoring and assessment financial assistance program. “§ 2521. Definitions “In this chapter: “(1) The terms ‘Federal laboratory’ and ‘laboratory’ have the meaning given the term ‘laboratory’ in section 12(d)(2) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a(d)(2)). “(2) The term ‘critical technology’ means a technology that is— “(A) a national critical technology; or “(B) a defense critical technology. “(3) The term ‘national critical technology’ means a technology that— “(A) appears on the list of national critical technologies contained in a biennial report on national critical technologies submitted to Congress by the President pursuant to section 603(d) of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6683(d)); and “(B) has not been expressly deleted from such list by such a report subsequently submitted to Congress by the President. “(4) The term ‘defense critical technology’ means a technology that— “(A) appears on the list of critical technologies contained in an annual defense critical technologies plan submitted to Congress by the Secretary of Defense pursuant to section 2522 of this title; and “(B) has not been expressly deleted from such list by such a plan subsequently submitted to Congress by the Secretary. 105 STAT. 1427 “(5) The term ‘dual-use critical technology’ means a critical technology that has military applications and nonmilitary commercial applications. “(6) The term ‘eligible firm’ means a company or other business entity that, as determined by the Secretary of Commerce— “(A) conducts a significant level of its research, development, engineering, and manufacturing activities in the United States; and “(B) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is incorporated in a country the government of which— “(i) encourages the participation of firms so owned or controlled in research and development consortia to which the government of that country provides funding directly or provides funding indirectly through international organizations; and “(ii) affords adequate and effective protection for the intellectual property rights of companies incorporated in the United States. Such term includes a consortium of such companies or other business entities, as determined by the Secretary of Commerce. “(7) The term ‘Pacific Rim country’ means a foreign country located on or near the periphery of the Pacific Ocean. “§ 2523. Defense dual-use critical technology partnerships “(a) Establishment of Partnerships.—The Secretary of Defense, acting through the Director of Defense Research and Engineering, shall conduct a program providing for the establishment of cooperative arrangements (hereinafter in this section referred to as partnerships’) between the Department of Defense and entities referred to in subsection (b) in order to encourage and provide for research, development, and application of dual-use critical technologies. The Secretary may make grants, enter into contracts, or enter into cooperative agreements and other transactions pursuant to section 2371 of this title in order to establish the partnerships. “(b) Non-Department of Defense Participants.—In the case of each partnership, the entities with which the Secretary enters into the partnership shall include two or more eligible firms or a nonprofit research corporation established by two or more eligible firms and, may also include, as determined appropriate by the Secretary of Defense, a Federal laboratory or laboratories, institutions of higher education, agencies of State governments, and other entities that participate in the partnership by supporting the activities conducted by such firms or corporations under this section. “(c) Financial Commitment of Non-Federal Government Participants.—The Secretary of Defense shall ensure that, to the maximum extent he determines to be practicable, the amount of the funds provided by the Federal Government under a partnership does not exceed the total amount provided by non-Federal Government participants in that partnership. “(d) Assistance Authorized.—The Secretary of Defense may provide a partnership with technical and other assistance to facilitate the achievement of the purposes of this section. “(e) Selection Process.—Competitive procedures shall be used in the establishment of partnerships, except that procedures other 105 STAT. 1428than competitive procedures may be used in any case in which an exception set out in section 2304(c) of this title applies. “(f) Selection Criteria.—The criteria for the selection of proposed partnerships for establishment under this section shall include the following: “(1) The extent to which the program proposed to be conducted by the partnership advances and enhances the national security interests of the United States. “(2) The technical excellence of the program proposed to be conducted by the partnership. “(3) The qualifications of the personnel proposed to participate in the partnership’s research activities. “(4) A likelihood that there will not be timely private sector investment in activities to achieve the goals and objectives of the proposed partnership other than through the partnership. “(5) The potential effectiveness of the partnership in the further development and application of technology proposed to be developed by the partnership for the defense industrial base. “(6) The extent of the financial commitment of eligible firms to the proposed partnership. “(7) Such other criteria that the Secretary prescribes. 2524. Critical technology application centers assistance program “(a) Establishment of Program.—The Secretary of Defense, in consultation and coordination with the Secretary of Commerce, shall conduct a program to provide assistance for the activities of eligible regional critical technology application centers in the United States. “(b) Eligible Centers.—A regional critical technology application center is eligible for assistance under the program if— “(1) the purpose of the center is to facilitate the use of one or more defense critical technologies for defense and commercial purposes by an industry in the region served by that center in order to maintain within the United States industrial capabilities that are vital to the national security of the United States; and “(2) the center meets the other requirements of this section. “(c) Program Participants.— (1) The participants in a critical technology application center— “(A) shall include— “(i) eligible firms that conduct business in the region of the United States served or to be served by the center; and “(ii) a sponsoring agency in such region; and “(B) may include other organizations considered appropriate by the Secretary of Defense. “(2) (A) A sponsoring agency of a center may be any agency described in subparagraph (B) that, as determined by the Secretary, provides adequate assurances that it will— “(i) meet the financial requirement in subsection (e); and “(ii) provide assistance in the management of the center. “(B) An agency referred to in subparagraph (A) is any of the following: “(i) An agency of a State or local government. “(ii) A nonprofit organization established, or performing functions, pursuant to an agreement entered into by two or more States or local governments. 105 STAT. 1429 “(iii) A membership organization in which a State or local government is a member. “(d) Assistance Authorized.— (1) Under the program, the Secretary may provide— “(A) financial assistance for the activities of a critical technology application center (including, in the case of a proposed center, the establishment of such center) in any amount not in excess of 30 percent of the cost of conducting such activities (including the cost of establishing a proposed center) during the period covered by the financial assistance; and “(B) technical assistance for the activities (and, in the case of a proposed center, the establishment) of a center awarded financial assistance authorized by subparagraph (A). “(2) The Secretary may not provide financial assistance under the program for construction of facilities. “(3) The Secretary may furnish assistance to a critical technology application center under the program for not more than six years. “(e) Financial Contributions of Center Participants.—(1) The sponsoring agency of a critical technology application center and the eligible firms participating in the center shall pay at least 70 percent of the total cost incurred each year for the activities of the center. Funds contributed for the activities of the center by institutions of higher education or private, nonprofit organizations participating in the center shall be considered as funds contributed by the sponsoring agency. “(2) If the right to use or license the results of any research and development activity of a center is limited by participants in the center to one or more, but less than one-half, of the eligible firms participating in the center, the non-Federal Government participants in the center shall pay the total cost incurred for such activity. “(f) Management Plan.—A critical technology application center shall operate under a management plan that includes provisions for the eligible firms participating in the center to have the primary responsibility for directing the activities of the center and to exercise that responsibility through, among any other means, majority voting membership of such firms on the board of directors of the center. “(g) Administration of Program.—The Secretary shall prescribe regulations that, to the extent practicable, apply the same requirements and authorities in the administration of this section as apply under subsections (d) and (e) of section 2523 of this title in the case of the dual-use critical technologies partnerships program provided for in that section. “(h) Selection Criteria.—The criteria for selection of a center to receive financial assistance under this section shall include the following: “(1) The potential for the activities of the center to result in— “(A) increased availability of technology for the enhancement of national security; and “(B) the emergence in such region of new firms that are capable of applying dual-use critical technologies. “(2) The potential for the center to be able to apply critical technology research and development supported or conducted by Federal laboratories and institutions of higher education in the advancement of national security interests of the United States. 105 STAT. 1430 “(3) The potential for the center to sustain itself through support from industry and other non-Federal Government sources after termination of the Federal assistance provided pursuant to this section. “(4) The level of involvement of appropriate State and local agencies, institutions of higher education, and private, nonprofit entities in the center. “(5) Such other criteria as the Secretary prescribes. “§ 2525. Office for Foreign Defense Critical Technology Monitoring and Assessment “(a) In General.—The Secretary of Defense shall establish within the Office of the Director of Defense Research and Engineering an office known as the ‘Office for Foreign Defense Technology Monitoring and Assessment’ (hereinafter in this section referred to as the ‘Office’). “(b) Relationship to Department of Commerce.—The head of the Office shall consult closely with appropriate officials of the Department of Commerce in order— “(1) to minimize the duplication of any effort of the Department of Commerce by the Department of Defense regarding the monitoring of foreign activities related to defense critical technologies that have potential commercial uses; and “(2) to ensure that the Office is effectively utilized to disseminate information to users of such information within the Federal Government. “(c) Responsibilities.—The Office shall have the following responsibilities: “(1) To maintain within the Department of Defense a central library for the compilation and appropriate dissemination of unclassified and classified information and assessments regarding significant foreign activities in research, development, and applications of defense critical technologies. “(2) To establish and maintain— “(A) a widely accessible unclassified data base of information and assessments regarding foreign science and technology activities that involve defense critical technologies, including, especially, activities in Europe and in Pacific Rim countries; and “(B) a classified data base of information and assessments regarding such activities. “(3) To perform liaison activities among the military departments, Defense Agencies, and other appropriate elements of the Department of Defense, with appropriate agencies and offices of the Department of Commerce and the Department of State, and with other departments and agencies of the Federal Government in order to ensure that significant activities in research, development, and applications of defense critical technologies are identified, monitored, and assessed by an appropriate department or agency of the Federal Government. “(4) To ensure the maximum practicable public availability of information and assessments contained in the unclassified data bases established pursuant to paragraph (2)— “(A) by limiting, to the maximum practicable extent, restrictive classification of such information and assessments; and 105 STAT. 1431 “(B) by disseminating to the National Technical Information Service of the Department of Commerce information and assessments regarding defense critical technologies having potential commercial uses. “(5) To disseminate through the National Technical Information Service of the Department of Commerce unclassified information and assessments regarding defense critical technologies having potential commercial uses so that such information and assessments may be further disseminated within the Federal Government and to the private sector. “§ 2526. Overseas foreign critical technology monitoring and assessment financial assistance program “(a) Establishment and Purpose of Program.—The Secretary of Defense may establish a foreign critical technology monitoring and assessment program. Under tne program, the Secretary may enter into cooperative arrangements with one or more eligible not-for-profit organizations in order to provide financial assistance for the establishment of foreign critical technology monitoring and assessment offices in Europe, Pacific Rim countries, and such other countries as the Secretary considers appropriate. “(b) Eligible Organizations.—Any not-for-profit industrial or professional organization that has economic ana scientific interests in research, development, and applications of dual-use critical technologies is eligible to enter into a cooperative arrangement referred to in subsection (a).”. (b) Transfer of Section.— (1) Section 2508 of title 10, United States Code, is redesignated as section 2522 and, as so redesignated, is transferred to chapter 150 of such title (as added by subsection (a)), and inserted after section 2521. (2) The table of sections at the beginning of chapter 148 of such title is amended by striking out the item relating to section 2508. (c) Repeal.— (1) Section 2368 of title 10, United States Code, is repealed. (2) The table of sections at the beginning of chapter 139 of such title is amended by striking out the item relating to section 2368. (d) Funding.—Of the amounts authorized to be appropriated pursuant to section 201, there shall be available for the following purposes the amounts specified for such purposes, as follows: (1) For each of fiscal years 1992 and 1993, for the Defense Advanced Research Projects Agency to carry out section 2523 of title 10, United States Code (as added by subsection (a)), relating to dual-use critical technology partnerships, $100,000,000. (2) For fiscal year 1992, for the critical technology application centers program established pursuant to section 2524 of title 10, United States Code (as added by subsection (a)), $50,000,000. (e) Technical Amendments Necessitated by Enactment of the New Chapter 150.—Part IV of subtitle A of title 10, United States Code, is amended— (1) by striking out the heading of chapter 151 and inserting in lieu thereof the following: “SUBCHAPTER II—ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO THE ARMED FORCES”; (2) by striking out the heading of chapter 150 in effect on the day before the date of the enactment of this Act (relating to 105 STAT. 1432issue to Armed Forces) and the table of sections at the beginning of such chapter and inserting in lieu thereof the following: “CHAPTER 152—ISSUE OF SUPPLIES, SERVICES, AND FACILITIES “Subchapter Sec. “I. Issue to the Armed 2540 “II. Issue of Serviceable Material Other Than to the Armed Forces 2541 “SUBCHAPTER I—ISSUE TO THE ARMED FORCES “Sec. “2540. Reserve components: supplies, services, and facilities.”; and (3) by redesignating the section 2521 in effect on the day before the date of the enactment of this Act (relating to supplies, services, and facilities for reserve components) as section 2540. (f) Clerical Amendment.—The tables of chapters at the beginning of subtitle A of title 10, United States Code, and at the beginning of part IV of such subtitle are each amended by striking out the items relating to chapters 150 and 151 and inserting in lieu thereof the following: “150. Development of Dual-Use Critical 2521 “152. Issue of Supplies, Services, and Facilities 2540”