To expand the Manufacturing Extension Program to bring the new economy to small and medium-sized businesses.

June 24, 2004

Mrs. CLINTON introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

To expand the Manufacturing Extension Program to bring the new economy to small and medium-sized businesses.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Technology Extension Act of 2004'.

SEC. 2. FINDINGS.

Congress finds the following:

(1) The Federal Government developed the Agriculture Extension Program, and more recently, the Manufacturing Extension Program to help farmers and small manufacturers gain access to the latest technologies. Today's small and medium-sized businesses need a technology extension program that provides access to cutting edge technology.

(2) There is a need to create partnerships to cut the time it takes for new developments in university laboratories to reach the manufacturing floor, to help small and medium-sized businesses transform their innovations into jobs.

(3) There is a need to build upon the Manufacturing Extension Program to encourage the adoption of advanced technology.

SEC. 3. TECHNOLOGY EXTENSION PROGRAM.

(a) PURPOSE- It is the purpose of this section--

(1) to encourage meaningful use of the most advanced available technologies by small businesses and medium-sized businesses to the maximum extent possible to improve the productivity of those businesses and thereby to promote economic growth; and

(2) to promote regional partnerships between educational institutions and businesses to develop such technologies and products in the surrounding areas.

(b) GRANT PROGRAM- To achieve the purpose of this section, the Secretary of Commerce (in this section, referred to as the `Secretary') shall carry out a program to provide, through grants, financial assistance for the establishment and support of regional centers for the commercial use of advanced technologies by small businesses and medium-sized businesses.

(c) ELIGIBILITY- An entity is eligible to receive a grant as a regional center under this section if the entity--

(1) is affiliated with a United States-based institution or organization that is operated on a not-for-profit basis, or any combination of two or more of such institutions or organizations;

(2) offers to enter into an agreement with the Secretary to function as a regional center for the commercial use of advanced technologies for the purpose of this section within a region determined appropriate by the Secretary; and

(3) demonstrates that it has the capabilities necessary to achieve the purpose of this section through its operations as a center within that region.

(d) SELECTION OF APPLICANTS-

(1) COMPETITIVE PROCESS- The Secretary shall use a competitive process for the awarding of grants under this section and, under that process, select recipients of the grants on the basis of merit, with priority given to underserved areas.

(2) APPLICATIONS FOR GRANTS- The Secretary shall prescribe the form and content of applications required for grants under this section.

(e) SPECIFIC ACTIVITIES OF REGIONAL CENTERS- A regional center may use the proceeds of a grant under this section for any activity that carries out the purpose of this section, including such activities as the following:

(1) Assist small businesses and medium-sized businesses to address their most critical needs for the application of the latest technology, improvement of infrastructure, and use of best business practices.

(2) In conjunction with institutions of higher education and laboratories located in the region, transfer technologies to small businesses and medium-sized businesses located in such region to create jobs and increase production in surrounding areas.

(f) ADDITIONAL ADMINISTRATIVE AUTHORITIES-

(1) COST-SHARING- The Secretary may require the recipient of a grant to defray, out of funds available from sources other than the Federal Government, a specific level of the operating expenses of the regional center for which the grant is made.

(2) ADDITIONAL TERMS AND CONDITIONS- The Secretary, in awarding a grant, may impose any other terms and conditions for the use of the proceeds of the grant that the Secretary determines appropriate for carrying out the purposes of this section and to protect the interests of the United States.

(g) DEFINITIONS OF SMALL BUSINESS AND MEDIUM-SIZED BUSINESS-

(1) SECRETARY TO PRESCRIBE- The Secretary shall prescribe the definitions of the terms `small business' and `medium-sized business' for the purpose of this section.

(2) SMALL BUSINESS STANDARDS- In defining the term `small business', the Secretary shall apply the standards applicable for the definition of the term `small-business concern' under section 3 of the Small Business Act (15 U.S.C. 632).

(h) REGULATIONS- The Secretary shall prescribe regulations for the grant program administered under this section.

(i) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated for the Department of Commerce for carrying out this section $125,000,000 for fiscal year 2005, and such sums as are necessary for each fiscal year thereafter.

END