text: 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).
target: 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.
feat_title: Electronic Commerce Extension Establishment Act of 1999