Statement of Administration Policy: H.R. 1989 - American Technology Preeminence Act of 1991

(House Floor)
(Valentine (D) North Carolina and 16 others)

If H.R. 1989 is presented to the President in its current form, the Secretary of Commerce will recommend a veto. In particular, the Administration strongly objects to the Technology Commercialization Loan Program, which would inappropriately channel Government funds away from broad technology goals to underwriting particular product development projects.

The Administration also has very serious concerns about the requirement that the Secretary identify critical manufacturing industries and develop a 10-year plan to ensure the growth of those industries. This requirement is directly contrary to Administration policy against targeting particular industries and centralized economic planning.

The Administration strongly supports an amendment to be offered by Congressman Walker which would delete the technical commercial loan provisions.

The Administration also strongly opposes enactment of H.R. 1989 unless it is amended to:

—   Delete Sections 501 (creating a High-Resolution Information Systems Advisory Board), 502 (requiring the Office of Science and Technology Policy (OSTP) to report on certain multinational projects), 503 (relating to biennial National Critical Technologies Reports), and 508 (revising the functions of the Federal Coordinating Council for Science, Engineering and Technology (FCCSET)). These provisions are unnecessary and infringe upon Presidential prerogatives to delegate authority and manage the affairs of the Executive branch. Section 501 duplicates efforts being undertaken by the Council on Competitiveness, the Department of Defense, and other agencies.

—   Delete the requirement in Section 401 that the Vice President be among those appointed to the Commission on Reducing Capital Costs for Emerging Technologies. This requirement raises constitutional questions regarding the Vice President's duties.

—   Delete Section 507(a)(4), which requires an annual White House Conference on Quality Performance in the American Workplace. Mandating annual involvement of the White House in this Conference is inappropriate and not an effective use of White House resources.

—   Revise Section 201(c) regarding recoupment in the Advanced Technology Program (ATP). It improperly involves the Government in deciding whether or not a specific ATP project is a "commercial success." The current ATP license and royalty provision (15 U.S.C. 278n(d)(7)), which Section 201 (c) would amend, should be repealed. It is a significant deterrent to the participation in the ATP of computer software and other copyright-oriented companies.

H.R. 1989 contains a number of other objectionable provisions which are inconsistent with the Administration's investment and trade policies, restrict agency flexibility in managing programs, or duplicate existing programs.

Scoring for the Purpose of Pay-As-You-Go

The Omnibus Budget Reconciliation Act (OBRA) requires that all revenue and direct spending legislation meet a pay-as-you-go requirement. That is, no such bill should result in an increase in the deficit; and if it does, it will trigger a sequester if it is not fully offset. OMB staff's preliminary estimate is that the PAYGO effect of H.R. 1989 would be zero. Thus, considered alone, this bill meets the PAYGO requirement of OBRA.