Statement of Administration Policy: S. 1191 - Technology Administration Act

(Senate)
(Hollings (D) South Carolina and 7 others)

The Administration strongly opposes enactment of S. 1191 because of the objectionable provisions addressed below.

Advanced Technology Program (ATP). The $100 million appropriation authorization for this program in FY 1990 is especially troublesome. The ATP would establish a precedent for direct financial subsidization of R&D for particular industries and firms in situations where the Government is not the final customer. Such a subsidy would inapproprijately require the Federal Government to pick winners and losers from among emerging technologies, a determination best left to the marketplace.

The ATP also threatens to divert funding from traditional National Institute of Standards and Technology (NIST) programs. These programs provide broad-based support for many of the technologies identified in the bill. NIST should continue to focus on its unique role in metrology and standards, a role which is not performed by the private sector.

Section 5, which concerns participation of foreign-owned firms in ATP-funded consortia, would also discriminate against foreign companies; impose investment performance requirements; impose conditions on the licensing of intellectual property; and mandate reciprocity requirements. These requirements are contrary to established U.S. trade and investment policy and undermine positions taken by the United States in international negotiations.

Miscellaneous objectionable Provisions. The following provisions of S. 1191 are also objectionable:

— The requirement that the Secretary of Commerce submit a report (with legislative recommendations) concurrently to the President and Congress on the establishment of high definition television (HDTV) as a domestic industry. The Department of Justice advises that the concurrent submission requirement raises constitutional concerns.

— Several burdensome reporting requirements, such as requiring the Secretary of Commerce to: (1) compile a list of emerging technologies and assess the U.S. competitive position for each; and (2) evaluate "flow of industrial technology between the United States and major trading partners," a major data gathering and analytical effort of questionable value.

— Section 7, which would permit NIST to employ and set the pay for an unspecified number of permanent employees without regard to otherwise applicable Federal personnel laws. NIST is already engaged in a major project to demonstrate an alternative personnel and pay system. This new authority would further fragment the Federal pay system.