(A) financial assistance for the activities of a regional technology alliance (including, in the case of a proposed regional technology alliance, the establishment of such regional technology alliance) in any amount not in excess of 50 percent of the cost of conducting such activities (including the cost of establishing a proposed regional technology alliance) during the period covered by the financial assistance; and

(B) technical assistance for the activities (and, in the case of a proposed regional technology alliance, the establishment) of a regional technology alliance awarded financial assistance authorized by subparagraph (A).

(2) The Secretary may not provide financial assistance under the program for construction of facilities.

(3) The Secretary may furnish assistance to a regional technology alliance under the program for not more than six years.

(e) FINANCIAL CONTRIBUTIONS OF ALLIANCE PARTICIPANTS.-(1) The sponsoring agency of a regional technology alliance and the eligible firms participating in the regional technology alliance shall pay at least 50 percent of the total cost incurred each year for the activities of the regional technology alliance. Funds contributed for the activities of the regional technology alliance by institutions of higher education or private, nonprofit organizations participating in the regional technology alliance shall be considered as funds contributed by the sponsoring agency.

(2) If the right to use or license the results of any research and development activity of a regional technology alliance is limited by participants in the regional technology alliance to one or more, but less than one-half, of the eligible firms participating in the regional technology alliance, the non-Federal Government participants in the regional technology alliance shall pay the total cost incurred for such activity.

(3) The Secretary may prescribe regulations to provide for consideration of in-kind contributions by non-Federal Government participants in a regional technology alliance for the purpose of calculating the share of the costs that has been or is being undertaken by such participants. In such regulations, the Secretary may authorize a participant that is a small business concern to use funds received under the Small Business Innovation Research Program or the Small Business Technology Transfer Program to help pay the costs of a regional technology alliance. Any such funds so used may be considered in calculating the amount of the financial commitment undertaken by the non-Federal Government participants unless the Secretary_determines that the small business concern has not made a significant equity percentage contribution in the regional technology alliance from non-Federal sources.

(4) The Secretary shall consider a proposal for a regional technology alliance that is submitted by a small business concern without regard to the ability of the small business concern to immediately meet its share of the anticipated costs of the alliance. Upon the selection of a proposal submitted by a small business concern, the small business concern shall have a period of not less than 120 days in which to arrange to meet its financial commitment requirements under the regional technology alliance from sources other than a person of a foreign country. If the Secretary determines

upon the expiration of that period that the small business concern will be unable to meet its share of the anticipated costs, the Secretary shall revoke the selection of the proposal submitted by the small business concern.

(f) MANAGEMENT PLAN.-A regional technology alliance shall operate under a management plan that includes provisions for the eligible firms participating in the regional technology alliance to have the primary responsibility for directing the activities of the regional technology alliance and to exercise that responsibility through, among any other means, majority voting membership of such firms on the board of directors of the regional technology alli

ance.

(g) ADMINISTRATION OF PROGRAM.-The Secretary shall prescribe regulations that, to the extent practicable, apply the same requirements and authorities in the administration of this section as apply under subsections (d) and (e) of section 2511 of this title in the case of the dual-use critical technologies partnerships program provided for in that section.

(h) SELECTION CRITERIA.-The criteria for selection of a regional technology alliance to receive financial assistance under this section shall include the following:

(1) The potential for the activities of the regional technology alliance to result in—

(A) increased availability of technology for the enhancement of national security; and 2222

(B) the emergence in such region of new firms that are capable of applying dual-use critical technologies.

(2) The potential for the regional technology alliance to be able to apply critical technology research and development supported or conducted by Federal laboratories and institutions of higher education in the advancement of national security interests of the United States.

(3) The potential for the regional technology alliance to sustain itself through support from industry and other nonFederal Government sources after termination of the Federal assistance provided pursuant to this section.

(4) The level of involvement of appropriate State and local agencies, institutions of higher education, and private, nonprofit entities in the regional technology alliance.

(5) The potential for the regional technology alliance to increase industrial competitiveness.

(6) The potential for the regional technology alliance to meet the needs of small- and medium-sized defense-dependent companies across multiple activity areas including

(A) outreach;

(B) manufacturing education and training;

(C) technology development;

(D) technology deployment; and

(E) business counseling.

(7) Such other criteria as the Secretary prescribes.

(Added as 2524 P.L. 102–190, §821(a), Dec. 5, 1991, 105 Stat. 1428; transferred, redsignated $2513, and amended P.L. 102-484, §4223, Oct. 23, 1992, 106 Stat. 2681; P.L. 103-35, 201(d)3), (eX1), May 31, 1993, 107 Stat. 99; P.L. 103-160, §§ 1182(g)(2), 1315(c), 1316, Nov. 30, 1993, 107 Stat. 1774, 1787, 1789; P.L. 103-337, § 1115(c), Oct. 5, 1994, 108 Stat. 2868.)

§ 2514. Encouragement of technology transfer

(a) ENCOURAGEMENT OF TRANSFER REQUIRED.-The Secretary of Defense shall encourage, to the extent consistent with national security objectives, the transfer of technology between laboratories and research centers of the Department of Defense and other Federal agencies, State and local governments, colleges and universities, and private persons in cases that are likely to result in accomplishing the objectives set forth in section 2501(a) of this title.

(b) EXAMINATION AND IMPLEMENTATION OF METHODS TO ENCOURAGE TRANSFER.-The Secretary shall examine and implement methods, in addition to the encouragement referred to in subsection (a) and the program described in subsection (c), that are consistent with national security objectives and will enable Department of Defense personnel to promote technology transfer.

(c) PROGRAM TO ENCOURAGE DIVERSIFICATION OF DEFENSE LABORATORIES.-(1) The Secretary of Defense shall establish and implement a program to be known as the Federal Defense Laboratory Diversification Program (hereinafter in this subsection referred to as the "Program"). The purpose of the Program shall be to encourage greater cooperation in research and production activities carried out by defense laboratories and by private industry of the United States in order to enhance and improve the products of such research and production activities.

(2) Under the Program, the defense laboratories, in coordination with the Office of Technology Transfer in the Office of the Secretary of Defense, shall carry out cooperative activities with private industry in order to promote (by the use or exchange of patents, licenses, cooperative research and development agreements and other cooperative agreements, and the use of symposia, meetings, and other similar mechanisms) the transfer of defense or dual-use technologies from the defense laboratories to private industry, and the development and application of such technologies by the defense laboratories and private industry, for the purpose of the commercial utilization of such technologies by private industry.

(3) The Secretary of Defense shall develop and annually update a plan for each defense laboratory that participates in the Program under which plan the laboratory shall carry out cooperative activities with private industry to promote the transfers described in subsection (b).

(4) In this subsection, the term "defense laboratory" means any laboratory owned or operated by the Department of Defense that carries out research in fiscal year 1993 in an amount in excess of $50,000,000.

(5) The Secretary shall coordinate the Program with the National Defense Technology and Industrial Base Council.

(Added P.L. 102–484, § 4224(a), Oct. 23, 1992, 106 Stat. 2682.)

§ 2515. Office of Technology Transition

(a) ESTABLISHMENT.-The Secretary of Defense shall establish within the Office of the Secretary of Defense an Office of Technology Transition.

(b) PURPOSE.-The purpose of the office shall be to ensure, to the maximum extent practicable, that technology developed for na

tional security purposes is integrated into the private sector of the United States in order to enhance national technology and industrial base, reinvestment, and conversion activities consistent with the objectives set forth in section 2501(a) of this title.

(c) DUTIES.—The head of the office shall ensure that the office

(1) monitors all research and development activities that are carried out by or for the military departments and Defense Agencies;

(2) identifies all such research and development activities that use technologies, or result in technological advancements, having potential nondefense commercial applications;

(3) serves as a clearinghouse for, coordinates, and otherwise actively facilitates the transition of such technologies and technological advancements from the Department of Defense to the private sector;

(4) conducts its activities in consultation and coordination with the Department of Energy and the Department of Commerce; and

(5) provides private firms with assistance to resolve problems associated with security clearances, proprietary rights, and other legal considerations involved in such a transition of technology.

(d) REPORTING REQUIREMENT.-The Secretary of Defense shall submit to the Committees on Armed Services and on Appropriations of the Senate and the House of Representatives an annual report on the activities of the Office at the same time that the budget is submitted to Congress by the President pursuant to section 1105 of title 31. The report shall contain a discussion of the accomplishments of the Office during the fiscal year preceding the fiscal year in which the report is submitted.

(Added P.L. 102–484, § 4225(a), Oct. 23, 1992, 106 Stat. 2683.)

§ 2516. Military-Civilian Integration and Technology Transfer Advisory Board

(a) ESTABLISHMENT.-There is established a Military-Civilian Integration and Technology Transfer Advisory Board (in this section referred to as the "Advisory Board").

(b) GOALS.-The goals of the Advisory Board are to ensure, in furtherance of the national security objectives set forth in section 2501(a) of this title—

(1) the effective integration of commercial technologies and best practices into defense industries;

(2) the efficient transfer of defense technologies to civilian industries, where applicable;

(3) that civilian markets are appropriately integrated into dual-use technology development strategies; and

(4) that dual-use critical technologies are used in carrying out defense reinvestment, diversification, and conversion activities described in section 2501(b) of this title.

(c) COMPOSITION.-The Advisory Board shall be composed of at least 17 members. The members of the Advisory Board shall be appointed by the National Defense Technology and Industrial Base Council from among individuals who, because of their experience

and accomplishments in defense or civilian technology development, business development, international trade, or finance, are exceptionally qualified to analyze and formulate policy that would improve the integration of military and civilian capabilities and resources. The National Defense Technology and Industrial Base Council shall designate one member to serve as chairman, with the chairmanship to change annually. Membership of the Advisory Board shall be composed of

(1) representatives of

(A) large and small firms involved in both defense and civilian technologies;

(B) universities and independent research institutes; (C) State and local government agencies involved in technology extension and economic development;

and

(D) Federal defense and nondefense laboratories;

(E) industrial, worker, and professional organizations;

(F) financial organizations; and

(2) other individuals that possess important insight to issues of military-commercial integration, as determined by the National Defense Technology and Industrial Base Council. (d) DUTIES.-The duties of the Advisory Board shall include

(1) advising the National Defense Technology and Industrial Base Council in the planning, execution, and evaluation of programs in the Department of Defense that would facilitate military-commercial integration, including the research, development, and application of dual-use technologies, and manufacturing and industrial assistance programs, educational programs, and financial support programs;

(2) advising the National Defense Technology and Industrial Base Council on policies that the Advisory Board considers essential to effective military-commercial integration;

(3) organizing a Dual-Use Technology Sub-board that will advise the Council on the effectiveness of military-civilian integration regarding dual-use technologies and strategies; and

(4) organizing other sub-boards, with the consent or at the request of the Council, to examine priority issues in militarycivilian integration.

(e) MEETINGS.-The Advisory Board shall meet at least once every four months, and at the call of the Council.

(f) TRAVEL EXPENSES.-Members of the Advisory Board, other than full-time employees of the United States, shall be allowed travel expenses in accordance with subchapter I of chapter 57 of title 5 when engaged in the business of the Advisory Board.

(g) TERMINATION.-The Advisory Board shall terminate at the close of fiscal year 1997.

(Added P.L. 102-484, § 4226(a), Oct. 23, 1992, 106 Stat. 2684, and amended P.L. 103-35, §201(g)8), May 31, 1993, 107 Stat. 100.)

§ 2517. Office for Foreign Defense Critical Technology Monitoring and Assessment

(a) IN GENERAL.-The Secretary of Defense shall establish within the Office of the Director of Defense Research and Engineering an office known as the "Office for Foreign Defense Critical