article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Electronic Commerce Extension Establishment Act of 1999''. SEC. 2. FINDINGS. Congress makes the following findings: (1) The United States economy is in the early stages of a revolution in electronic commerce--the ability to buy, sell, and even deliver goods and services through computer networks. Estimates are that electronic commerce sales in 1998 were around $100,000,000,000 and could rise to $1,300,000,000,000 by 2003. (2) Electronic commerce promises to spur tremendously United States productivity and economic growth--repeating a historical pattern where the greatest impetus toward economic growth lies not in the sale of new technologies but in their widespread adoption and use. (3) Electronic commerce presents an enormous opportunity and challenge for small businesses. Such commerce will give such businesses new markets and new ways of doing businesses. However, many such business will have difficulty in adopting appropriate electronic commerce technologies and practices. Moreover, such businesses in more rural areas will find distant businesses entering their markets and competing with them. Thus, there is considerable risk many small businesses will be left behind in the shift to electronic commerce. (4) The United States has an interest in ensuring that small businesses in all parts of the United States participate fully in the electronic commerce revolution, both for the sake of such businesses and in order to promote productivity and economic growth throughout the entire United States economy. (5) The Federal Government has a long history of successfully helping small farmers with new agricultural technologies through the Cooperative Extension System at the Department of Agriculture, founded in 1914. More recently, the National Institute of Standards and Technology has successfully helped small manufacturers with manufacturing technologies through its Manufacturing Extension Program, established in 1988. (6) Similarly, now is the time to establish an electronic commerce extension program to help small businesses throughout the United States identify, adapt, and adopt electronic commerce technologies and business practices, thereby ensuring that such businesses fully participate in the electronic commerce revolution. SEC. 3. PURPOSE. The purpose of this Act is to establish an electronic commerce extension program focused on small businesses at the National Institute of Standards and Technology. SEC. 4. ESTABLISHMENT OF ELECTRONIC COMMERCE EXTENSION PROGRAM AT NATIONAL INSTITUTES OF STANDARDS AND TECHNOLOGY. (a) Establishment.--The National Bureau of Standards Act (15 U.S.C. 271 et seq.) is amended by inserting after section 25 (15 U.S.C. 278k) the following new section: ``regional centers for the transfer of electronic commerce technology ``Sec. 25A. (a)(1) The Secretary, through the Undersecretary of Commerce for Technology and the Director and in consultation with other appropriate officials, shall provide assistance for the creation and support of Regional Centers for the Transfer of Electronic Commerce Technology (in this section referred to as `Centers'). ``(2) The Centers shall be affiliated with any United States-based nonprofit institution or organization, or group thereof, that applies for and is awarded financial assistance under this section in accordance with the program established by the Secretary under subsection (c). ``(3) The objective of the Centers is to enhance productivity and technological performance in United States electronic commerce through-- ``(A) the transfer of electronic commerce technology and techniques developed at the Institute to Centers and, through them, to companies throughout the United States; ``(B) the participation of individuals from industry, institutions of higher education, State governments, other Federal agencies, and, when appropriate, the Institute in cooperative technology transfer activities; ``(C) efforts to make electronic commerce technology and techniques usable by a wide range of United States-based small companies; ``(D) the active dissemination of scientific, engineering, technical, and management information about electronic commerce to small companies, with a particular focus on reaching those located in rural or isolated areas; and ``(E) the utilization, when appropriate, of the expertise and capability that exists in State and local governments, institutions of higher education, the private sector, and Federal laboratories other than the Institute. ``(b) The activities of the Centers shall include-- ``(1) the establishment of electronic commerce demonstration systems, based on research by the Institute and other organizations and entities, for the purpose of technology transfer; and ``(2) the active transfer and dissemination of research findings and Center expertise to a wide range of companies and enterprises, particularly small companies. ``(c)(1) The Secretary may provide financial support to any Center created under subsection (a) in accordance with a program established by the Secretary for purposes of this section. ``(2) The Secretary may not provide to a Center more than 50 percent of the capital and annual operating and maintenance funds required to create and maintain the Center. ``(3)(A) Any nonprofit institution, or group thereof, or consortia of nonprofit institutions may, in accordance with the procedures established by the Secretary under the program under paragraph (1), submit to the Secretary an application for financial support for the creation and operation of a Center under this section. ``(B) In order to receive financial assistance under this section for a Center, an applicant shall provide adequate assurances that it will contribute 50 percent or more of the estimated capital and annual operating and maintenance costs of the Center for the first three years of its operation and an increasing share of such costs over the next three years of its operation. ``(C) An applicant shall also submit a proposal for the allocation of the legal rights associated with any invention which may result from the activities of the Center proposed by the applicant. ``(4)(A) The Secretary shall subject each application submitted under this subsection to merit review. ``(B) In making a decision whether to approve an application and provide financial support for a Center under this section, the Secretary shall consider at a minimum-- ``(i) the merits of the application, particularly the portions of the application regarding technology transfer, training and education, and adaptation of electronic commerce technologies to the needs of particular industrial sectors; ``(ii) the quality of service to be provided; ``(iii) geographical diversity and extent of service area; and ``(iv) the percentage of funding and amount of in-kind commitment from other sources. ``(5)(A) Each Center receiving financial assistance under this section shall be evaluated during the third year of its operation by an evaluation panel appointed by the Secretary. ``(B) Each evaluation panel under this paragraph shall be composed of private experts, none of whom shall be connected with the Center involved, and with appropriate Federal officials. An official of the Institute shall chair each evaluation panel. ``(C) Each evaluation panel under this paragraph shall measure the performance of the Center involved against the objectives specified in this section and under the arrangement between the Center and the Institute. ``(6) The Secretary may not provide funding for a Center under this section for the fourth through the sixth years of its operation unless the evaluation regarding the Center under paragraph (5) is positive. If such evaluation for a Center is positive, the Secretary may provide continued funding for the Center through the sixth year of its operation at declining levels. ``(7)(A) After the sixth year of operation of a Center, the Center may receive additional financial support under this section if the Center has received a positive evaluation of its operation through an independent review conducted under procedures established by the Institute. Such independent review shall be undertaken for a Center not less often than every two years commencing after the sixth year of its operation. ``(B) The amount of funding received by a Center under this section for any fiscal year of the Center after the sixth year of its operation may not exceed an amount equal to one-third of the capital and annual operating and maintenance costs of the Center in such fiscal year under the program. ``(8) The provisions of chapter 18 of title 35, United States Code, shall (to the extent not inconsistent with this section) apply to the promotion of technology from research by Centers under this section except for contracts for such specific technology extension or transfer services as may be specified by statute or by the Director. ``(d)(1) In addition to such sums as may be appropriated to the Secretary and Director for purposes of the support of Centers under this section, the Secretary and Director may accept funds from other Federal departments and agencies for such purposes. ``(2) The selection and operation of a Center under this section shall be governed by the provisions of this section, regardless of the Federal department or agency providing funds for the operation of the Center. ``(e) In this section, the term `electronic commerce' means the buying, selling, and delivery of goods and services, or the coordination or conduct of economic activities within and among organizations, through computer networks.''. (b) Description of Program.--(1) Not later than 90 days after the date of the enactment of this Act, the Secretary of Commerce shall publish in the Federal Register a proposal for the program required by section 25A(c) of the National Bureau of Standards Act, as added by subsection (a). (2) The proposal for the program under paragraph (1) shall include-- (A) a description of the program; (B) procedures to be followed by applicants for support under the program; (C) criteria for determining qualified applicants under the program; (D) criteria, including the criteria specified in paragraph (4) of such section 25A(c), for choosing recipients of financial assistance under the program from among qualified applicants; and (E) maximum support levels expected to be available to Centers for the Transfer of Electronic Commerce Technology under the program in each year of assistance under the program. (3) The Secretary shall provide a 30-day period of opportunity for public comment on the proposal published under paragraph (1). (4) Upon completion of the period referred to in paragraph (3), the Secretary shall publish in the Federal Register a final version of the program referred to in paragraph (1). The final version of the program shall take into account public comments received by the Secretary under paragraph (3). (c) Authorization of Appropriations.--There is hereby authorized to be appropriated for the Department of Commerce each fiscal year such amounts as may be required during such fiscal year for purposes of activities under section 25A of the National Bureau of Standards Act, as added by subsection (a).
summary: Electronic Commerce Extension Establishment Act of 1999 - Amends the National Bureau of Standards Act to direct the Secretary of Commerce to provide assistance for the creation and support of Regional Centers for the Transfer of Electronic Commerce Technology (Centers). Requires the Centers to be affiliated with any U.S.-based nonprofit institution or organization that applies for and is awarded financial assistance under this Act. Outlines objectives of the Centers, including aiding small businesses, especially those located in rural areas, in identifying and adopting electronic commerce technologies and business practices. Defines "electronic commerce" as the ability to buy, sell, and deliver goods and services through computer networks. Requires such Centers to: (1) establish electronic commerce demonstration systems for technology transfer; and (2) transfer and disseminate research findings and Center expertise to companies and enterprises, particularly small businesses. Authorizes the Secretary to provide financial support to a Center for such activities and objectives. Outlines application requirements for such assistance. Requires Centers receiving assistance to be evaluated during the third year of operation by a panel of private experts. Requires a positive finding from such panel before a Center may receive such assistance for its fourth through sixth years. Requires independent review of a Center every two years after the sixth year, to be conducted under procedures established by the National Institutes of Standards and Technology. Provides Center funding limitations. Requires the Secretary to publish a proposal for the assistance program provided under this Act, as well as a final program. Authorizes appropriations.