Overview
Title
To direct the Director of the National Institute of Standards and Technology to establish the Foundation for Standards and Metrology, and for other purposes.
ELI5 AI
H. R. 2582 is a plan to set up a special group called the Foundation for Standards and Metrology to help with creating new technology rules. This group will work with schools and companies, can get money from different places, and will have people in charge to make sure it follows the rules.
Summary AI
H. R. 2582 aims to establish the Foundation for Standards and Metrology, a nonprofit organization, through the National Institute of Standards and Technology (NIST). This Foundation will support NIST by fostering partnerships with universities, industries, and other entities to promote the development of technical standards and emerging technologies in the U.S. The Foundation will be governed by a Board of Directors, which includes appointed voting members and nonvoting ex officio members, and has specific guidelines for its operation and integrity. Additionally, the Foundation will be able to receive donations, provide support services to NIST associates, and will operate independently from the federal government.
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AnalysisAI
Summary of the Bill
The bill, titled the "Expanding Partnerships for Innovation and Competitiveness Act," aims to establish a nonprofit corporation known as the Foundation for Standards and Metrology (the Foundation). This organizational body is designed to work alongside the National Institute of Standards and Technology (NIST) to promote measurement science and technical standards. By doing so, it seeks to enhance the economic security and prosperity of the United States. The Foundation is expected to collaborate with researchers, educational institutions, industries, and nonprofit organizations to accelerate the development and commercialization of new technologies.
Significant Issues
One notable issue with the bill is its lack of explicit guidelines for the Foundation's oversight and accountability. Since it is established as a nonprofit entity rather than a federal agency, there are concerns regarding the checks and balances that will govern its operations. The authority granted to the Foundation to solicit and manage funds, gifts, and bequests also raises potential conflicts of interest, particularly if donor influence is unchecked.
Furthermore, the bill allows for extensive powers for the Board of Directors of the Foundation, including asset management, which might result in potential financial mismanagement. Questions about transparency are further highlighted by the broad definition of permissible activities the Foundation can undertake, leading to ambiguity over resource allocation.
Impact on the Public
For the general public, the bill's aim to foster collaboration in advance technical standards and measurement science could result in long-term economic benefits, such as improved technology infrastructure and innovation. These advancements have the potential to enhance the competitiveness of U.S. industries both domestically and globally.
However, without clear oversight mechanisms, the Foundation's operations could be subject to operational inefficiencies or mismanagement, potentially leading to reduced effectiveness in meeting its goals. This could result in wasted public and private resources intended to drive technological advancement.
Impact on Stakeholders
National Institute of Standards and Technology (NIST): The Foundation is expected to work closely with NIST, potentially increasing NIST's ability to partner with diverse entities and expanding its research capabilities. However, there is a risk of misalignment between the Foundation's goals and NIST's objectives if not properly coordinated.
Private Sector and Nonprofits: Companies and nonprofit organizations could benefit from enhanced opportunities for collaboration on research and development projects, leading to new business ventures and innovations. However, if donor influence is not adequately checked, certain stakeholders may disproportionately benefit, undermining fair play and competitive practices.
Board of Directors: The selected individuals will hold significant power over the Foundation's direction, management, and financial decisions. Without adequate transparency and conflict of interest safeguards, their decisions could lead to issues of accountability.
In conclusion, while the bill promises enhanced collaboration and accelerated innovation in important technology fields, its success heavily depends on robust measures for transparency, governance, and conflict-of-interest mitigation. With appropriate safeguards, the Foundation has the potential to significantly contribute to the development of new technologies and the improvement of existing standards, benefiting the U.S. economy and society.
Financial Assessment
The proposed bill H. R. 2582, titled "Expanding Partnerships for Innovation and Competitiveness Act," entails several financial provisions relating to the establishment of the Foundation for Standards and Metrology under the National Institute of Standards and Technology (NIST). This commentary focuses on these financial references, highlighting their implications and potential concerns.
Summary of Financial Provisions
The bill authorizes the appropriation of funds ranging from $500,000 to $1,250,000 annually to the newly established Foundation, starting from the fiscal year 2026. These funds are intended to support the Foundation's activities as outlined in the bill. The Director of NIST is empowered to transfer these amounts from the budget allocated to the Secretary of Commerce, providing the Foundation with financial resources to support its operations and initiatives.
Relation to Identified Issues
- Potential Conflicts of Interest:
The authority given to the Foundation to solicit and manage external funds, gifts, and bequests introduces the risk of conflicts of interest or undue influence by donors. Since the Foundation is expected to operate with financial assistance from non-governmental sources, this independence from strict federal oversight could lead to a lack of accountability. The bill recognizes this risk, but while it mandates conflict of interest measures, the effectiveness of these measures in fully mitigating the risks is debatable (**Section 10236(c)(g)(i)(6)(E)).
Accountability and Oversight Concerns:
- As a nonprofit entity separate from direct federal oversight, the Foundation's financial management could face scrutiny. Although the Foundation is responsible for maintaining tax-exempt status under Section 501(c) of the Internal Revenue Code, the absence of strict compliance measures may expose it to financial mismanagement (**Section 10236(h)).
The extensive powers granted to the Board concerning asset management suggest potential mismanagement issues. In the absence of well-defined oversight structures, financial decisions made by the Board could lack transparency and accountability (**Section 10236(i)(6)(B)(E)).
Use of Foundation Resources:
The broad language regarding the mission and activities of the Foundation, particularly the statement that the Foundation may undertake "other activities as determined necessary" for its mission, could result in ambiguous financial expenditures (**Section 10236(c)(8)). This ambiguity could lead to disagreements over what constitutes appropriate use of resources, potentially resulting in inefficient or inappropriate financial decisions.
Continuity and Fresh Perspectives:
- The provision allowing Board members to serve beyond their term for up to 180 days raises questions about continuity and the influx of new ideas. Financial decisions during such overlapping periods lack fresh scrutiny, which may affect financial planning and resource allocation (**Section 10236(i)(4)(A)).
In summary, while the bill allocates specific amounts for the Foundation's functioning, it must grapple with issues of financial oversight, possible conflicts of interest, and clear guidelines in expenditure to ensure accountability and transparency. The Foundation's capacity to handle its financial independence responsibly is critical to preventing issues related to mismanagement or external influence.
Issues
The authority of the Foundation to solicit and manage funds, gifts, and bequests (Sec. 10236(c)(g)(i)(6)(E)) could result in conflicts of interest or undue influence by donors, potentially compromising the Foundation’s objectivity and mission.
The establishment of the Foundation as a nonprofit entity without clear guidelines on oversight (Sec. 10236(a)(f)) may lead to accountability and transparency issues since the Foundation is not an agency of the Federal Government.
The lack of detailed guidelines regarding donations, gifts, and grants (Sec. 10236(c)(g)(i)(7)(A)(ii)(I)) increases the risk of potential conflicts of interest or undue influence from donors.
The language concerning the tax-exempt status under section 501(c) of the Internal Revenue Code (Sec. 10236(h)) could be exploited if not managed with strict compliance measures, potentially leading to financial mismanagement.
The extensive powers granted to the Board for the management and disposition of assets (Sec. 10236(i)(6)(B)(E)) may result in financial mismanagement if not properly overseen.
The broad definition of 'activities necessary by the Foundation to carry out its mission' (Sec. 10236(c)(8)) could lead to ambiguity and disagreements over appropriate use of Foundation resources.
The provision allowing Board members to serve beyond their term expiration for up to 180 days (Sec. 10236(i)(4)(A)) may create continuity issues or hinder the introduction of fresh perspectives.
Potential conflicts of interest for Board members, despite conflict of interest procedures in place (Sec. 10236(i)(7)(A)(iii), (k)(2)), may not be fully mitigated, especially in the absence of detailed enforcement provisions.
The terms and composition for the initial members of the Board lack a transparent selection process (Sec. 10236(i)(2)(B)), raising concerns about the representativeness and independence of the Board.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
This section provides the short title for the legislation, which is the "Expanding Partnerships for Innovation and Competitiveness Act."
2. Foundation for Standards and Metrology Read Opens in new tab
Summary AI
The Foundation for Standards and Metrology is established as a nonprofit corporation to assist the National Institute of Standards and Technology (NIST) in promoting measurement science and technical standards in support of economic security in the U.S. The Foundation collaborates with various sectors to develop research and standards, is governed by a Board of Directors, and is not considered a federal agency. It operates independently with financial support through donations and appropriations from the Department of Commerce.
Money References
- “(q) Authorization of appropriations.—Notwithstanding any other provision of law, from amounts authorized to be appropriated for a fiscal year beginning with fiscal year 2026 to the Secretary of Commerce pursuant to section 10211, the Director may transfer not less than $500,000 and not more than $1,250,000 to the Foundation each such fiscal year.
10236. Foundation for Standards and Metrology Read Opens in new tab
Summary AI
The Foundation for Standards and Metrology is a nonprofit organization set up by the Secretary through the Director to support the National Institute of Standards and Technology (NIST). Its mission includes advancing measurement science and technical standards and partnering with other organizations to foster the development and commercialization of emerging technologies. The Foundation is managed by a Board of Directors, which sets policies and priorities, and is exempt from federal taxes. It coordinates with various stakeholders, reports to Congress on its activities, and manages donations and funds to achieve its goals.
Money References
- (q) Authorization of appropriations.—Notwithstanding any other provision of law, from amounts authorized to be appropriated for a fiscal year beginning with fiscal year 2026 to the Secretary of Commerce pursuant to section 10211, the Director may transfer not less than $500,000 and not more than $1,250,000 to the Foundation each such fiscal year.