```

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1468 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1468

   To require the Secretary of Commerce to establish the Network for 
            Manufacturing Innovation and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2013

 Mr. Brown (for himself and Mr. Blunt) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
   To require the Secretary of Commerce to establish the Network for 
            Manufacturing Innovation and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Revitalize American Manufacturing 
and Innovation Act of 2013''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In 2011, manufacturing contributed $1,800,000,000,000 
        to the Nation's economy and accounted for 47 percent of all 
        United States exports.
            (2) If ranked as its own country, the United States 
        manufacturing sector would be the 10th largest economy in the 
        world.
            (3) American manufacturers employ more than 11,000,000,000 
        Americans in jobs with wages and benefits that are one-third 
        higher than the wages and benefits in other sectors.
            (4) Manufacturing has the highest multiplier effect, with 
        every dollar in final sales of manufactured products resulting 
        in $1.34 in output from other sectors.
            (5) As the source of nearly one-third of the United States 
        investment in research and development manufacturing, firms 
        drive innovation in the United States.
            (6) Countries such as Korea, Japan, and Germany have a 
        larger share of the advanced manufacturing sector than the 
        United States. Each of these countries has a positive trade 
        balance in advanced manufacturing products. In contrast, the 
        United States had an $81,000,000,000 trade deficit in 2010.
            (7) The United States share of research and development 
        spending dropped from 43.1 percent in 1998 to 37.3 percent in 
        2008, while China's share of research and development spending 
        increased from 3 percent to 11.4 percent during the same 
        period.
            (8) According to a survey by the Council on 
        Competitiveness, chief executive officers view the quality and 
        availability of scientists, researchers, and engineers and the 
        quality and availability of skilled production workers as the 
        first and second most important drivers of competitiveness.
            (9) According to the Organization for Economic Co-Operation 
        and Development, the United States ranked 27th out of 29 
        developed countries in the percentage of students who earned 
        bachelor's degrees in science and engineering in 2009.
            (10) Colleges in China and India award more 4-year 
        engineering bachelor's degrees than United States colleges.

SEC. 3. ESTABLISHMENT OF NETWORK FOR MANUFACTURING INNOVATION.

    The National Institute of Standards and Technology Act (15 U.S.C. 
271 et seq.) is amended--
            (1) by redesignating section 34 as section 35; and
            (2) by inserting after section 33 (15 U.S.C. 278r) the 
        following:

``SEC. 34. NETWORK FOR MANUFACTURING INNOVATION.

    ``(a) Establishment of Network for Manufacturing Innovation 
Program.--
            ``(1) In general.--The Secretary of Commerce shall 
        establish within the Institute a program to be known as the 
        `Network for Manufacturing Innovation Program' (referred to in 
        this section as the `Program').
            ``(2) Purposes of program.--The purposes of the Program 
        are--
                    ``(A) to improve the competitiveness of United 
                States manufacturing and to increase domestic 
                production;
                    ``(B) to stimulate United States leadership in 
                advanced manufacturing research, innovation, and 
                technology;
                    ``(C) to facilitate the transition of innovative 
                technologies into scalable, cost-effective, and high-
                performing manufacturing capabilities;
                    ``(D) to facilitate access by manufacturing 
                enterprises to capital-intensive infrastructure, 
                including high-performance computing, in order to 
                improve the speed with which such enterprises 
                commercialize new processes and technologies;
                    ``(E) to accelerate the development of an advanced 
                manufacturing workforce;
                    ``(F) to facilitate peer exchange of and the 
                documentation of best practices in addressing advanced 
                manufacturing challenges; and
                    ``(G) to leverage non-Federal sources of support to 
                promote a stable and sustainable business model without 
                the need for long-term Federal funding.
            ``(3) Support.--The Secretary, acting through the Director, 
        shall carry out the purposes set forth in paragraph (2) by 
        supporting--
                    ``(A) the Network for Manufacturing Innovation 
                established under subsection (b); and
                    ``(B) the establishment of centers for 
                manufacturing innovation.
            ``(4) Director.--The Secretary shall carry out the Program 
        through the Director.
    ``(b) Establishment of Network for Manufacturing Innovation.--
            ``(1) In general.--As part of the Program, the Secretary of 
        Commerce shall establish a network of centers for manufacturing 
        innovation.
            ``(2) Designation.--The network established under paragraph 
        (1) shall be known as the `Network for Manufacturing 
        Innovation' (referred to in this section as the `Network').
    ``(c) Centers for Manufacturing Innovation.--
            ``(1) In general.--For purposes of this section, a `center 
        for manufacturing innovation' is a center that--
                    ``(A) has been established by a person to address 
                challenges in advanced manufacturing and to assist 
                manufacturers in retaining or expanding industrial 
                production and jobs in the United States;
                    ``(B) has a predominant focus on a manufacturing 
                process, novel material, enabling technology, supply 
                chain integration methodology, or another relevant 
                aspect of advanced manufacturing, as determined by the 
                Secretary, with the potential--
                            ``(i) to improve the competitiveness of 
                        United States manufacturing;
                            ``(ii) to accelerate investment in advanced 
                        manufacturing production capacity in the United 
                        States; and
                            ``(iii) to enable the commercial 
                        application of new technologies or industry-
                        wide manufacturing processes; and
                    ``(C) includes active participation among 
                representatives from multiple industrial entities, 
                research universities, community colleges, and such 
                other entities as the Secretary considers appropriate, 
                which may include career and technical education 
                schools, Federal laboratories, State, local, and tribal 
                governments, businesses, educational institutions, and 
                nonprofit organizations.
            ``(2) Activities.--Activities of a center for manufacturing 
        innovation may include the following:
                    ``(A) Research, development, and demonstration 
                projects, including proof-of-concept development and 
                prototyping, to reduce the cost, time, and risk of 
                commercializing new technologies and improvements in 
                existing technologies, processes, products, and 
                research and development of materials to solve pre-
                competitive industrial problems with economic or 
                national security implications.
                    ``(B) Development and implementation of education 
                and training courses, materials, and programs.
                    ``(C) Development of innovative methodologies and 
                practices for supply chain integration and introduction 
                of new technologies into supply chains.
                    ``(D) Outreach and engagement with small- and 
                medium-sized manufacturing enterprises, in addition to 
                large manufacturing enterprises.
                    ``(E) Such other activities as the Secretary, in 
                consultation with Federal departments and agencies 
                whose missions contribute to or are affected by 
                advanced manufacturing, considers consistent with the 
                purposes described in subsection (a)(2).
            ``(3) Additional centers for manufacturing innovation.--The 
        National Additive Manufacturing Innovation Institute and 
        pending manufacturing centers under interagency review shall be 
        considered centers for manufacturing innovation.
    ``(d) Financial Assistance To Establish and Support Centers for 
Manufacturing Innovation.--
            ``(1) In general.--In carrying out the Program, the 
        Secretary of Commerce shall award financial assistance to a 
        person to assist the person in planning, establishing, or 
        supporting a center for manufacturing innovation.
            ``(2) Application.--A person seeking financial assistance 
        under paragraph (1) shall submit to the Secretary an 
        application therefor at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(3) Open process.--In soliciting applications for 
        financial assistance under paragraph (1), the Secretary shall 
        ensure an open process that will allow for the consideration of 
        all applications relevant to advanced manufacturing regardless 
        of technology area.
            ``(4) Selection.--
                    ``(A) Competitive, merit review.--In awarding 
                financial assistance under paragraph (1), the Secretary 
                shall use a competitive, merit review process.
                    ``(B) Collaboration.--In awarding financial 
                assistance under paragraph (1), the Secretary shall, 
                acting through the National Program Office established 
                under subsection (e)(1), collaborate with Federal 
                departments and agencies whose missions contribute to 
                or are affected by advanced manufacturing.
                    ``(C) Considerations.--In selecting a person who 
                submitted an application under paragraph (2) for an 
                award of financial assistance under paragraph (1) the 
                Secretary shall consider, at a minimum, the following:
                            ``(i) The potential of the center for 
                        manufacturing innovation to advance domestic 
                        manufacturing and the likelihood of economic 
                        impact in the predominant focus areas of the 
                        center for manufacturing innovation.
                            ``(ii) The commitment of continued 
                        financial support, advice, participation, and 
                        other contributions from non-Federal sources, 
                        to provide leverage and resources to promote a 
                        stable and sustainable business model without 
                        the need for long-term Federal funding.
                            ``(iii) How the center for manufacturing 
                        innovation will engage with small- and medium-
                        sized manufacturing enterprises, to improve the 
                        capacity of such enterprises to commercialize 
                        new processes and technologies.
                            ``(iv) How the center for manufacturing 
                        innovation will carry out educational and 
                        workforce activities that meet industrial needs 
                        related to the predominant focus areas of the 
                        center for manufacturing innovation.
                            ``(v) How the center for manufacturing 
                        innovation will advance economic 
                        competitiveness.
                            ``(vi) How the center for manufacturing 
                        innovation will strengthen and leverage the 
                        assets of a region.
            ``(5) Limitation on period for awards.--No award of 
        financial assistance may be made under paragraph (1) to a 
        center of manufacturing innovation after the 7-year period 
        beginning on the date on which the Secretary first awards 
        financial assistance to a center under such paragraph.
    ``(e) National Program Office.--
            ``(1) Establishment.--The Secretary of Commerce shall 
        establish, within the Institute, the National Office of the 
        Network for Manufacturing Innovation Program (referred to in 
        this section as the `National Program Office'), which shall 
        oversee and carry out the Program.
            ``(2) Functions.--The functions of the National Program 
        Office are--
                    ``(A) to oversee the planning, management, and 
                coordination of the Program;
                    ``(B) to enter into memorandums of understanding 
                with Federal departments and agencies, whose missions 
                contribute to or are affected by advanced 
                manufacturing, to carry out the purposes described in 
                subsection (a)(2);
                    ``(C) to develop, not later than 1 year after the 
                date of the enactment of the Revitalize American 
                Manufacturing and Innovation Act of 2013, and update 
                not less frequently than once every 3 years thereafter, 
                a strategic plan to guide the Program;
                    ``(D) to establish such procedures, processes, and 
                criteria as may be necessary and appropriate to 
                maximize cooperation and coordinate the activities of 
                the Program with programs and activities of other 
                Federal departments and agencies whose missions 
                contribute to or are affected by advanced 
                manufacturing;
                    ``(E) to establish a clearinghouse of public 
                information related to the activities of the Program; 
                and
                    ``(F) to act as a convener of the Network.
            ``(3) Recommendations.--In developing and updating the 
        strategic plan under paragraph (2)(C), the Secretary shall 
        solicit recommendations and advice from a wide range of 
        stakeholders, including industry, small- and medium-sized 
        manufacturing enterprises, research universities, community 
        colleges, and other relevant organizations and institutions.
            ``(4) Report to congress.--The Secretary shall transmit the 
        strategic plan required under paragraph (2)(C) to the Committee 
        on Commerce, Science, and Transportation of the Senate and the 
        Committee on Science, Space, and Technology of the House of 
        Representatives.
            ``(5) Hollings manufacturing extension partnership.--The 
        Secretary shall ensure that the National Program Office 
        incorporates the Hollings Manufacturing Extension Partnership 
        into Program planning to ensure that the results of the Program 
        reach small- and medium-sized entities.
            ``(6) Detailees.--Any Federal Government employee may be 
        detailed to the National Program Office without reimbursement. 
        Such detail shall be without interruption or loss of civil 
        service status or privilege.
    ``(f) Reporting and Auditing.--
            ``(1) Annual reports to the secretary.--
                    ``(A) In general.--The Secretary of Commerce shall 
                require recipients of financial assistance under 
                subsection (d)(1) to annually submit a report to the 
                Secretary that describes the finances and performance 
                of the center for manufacturing innovation for which 
                such assistance was awarded.
                    ``(B) Elements.--Each report submitted under 
                subparagraph (A) shall include--
                            ``(i) an accounting of expenditures of 
                        amounts awarded to the recipient under 
                        subsection (d)(1); and
                            ``(ii) a description of the performance of 
                        the center for manufacturing innovation with 
                        respect to--
                                    ``(I) its goals, plans, financial 
                                support, and accomplishments; and
                                    ``(II) how the center for 
                                manufacturing innovation has furthered 
                                the purposes described in subsection 
                                (a)(2).
            ``(2) Annual reports to congress.--
                    ``(A) In general.--Not less frequently than once 
                each year, the Secretary shall submit a report to 
                Congress that describes the performance of the Program 
                during the most recent 1-year period.
                    ``(B) Elements.--Each report submitted under 
                subparagraph (A) shall include, for the period covered 
                by the report--
                            ``(i) a summary and assessment of the 
                        reports received by the Secretary under 
                        paragraph (1);
                            ``(ii) an accounting of the funds expended 
                        by the Secretary under the Program; and
                            ``(iii) an assessment of the Program with 
                        respect to the purposes described in subsection 
                        (a)(2).
            ``(3) Triennial assessment by gao.--
                    ``(A) In general.--Not less frequently than once 
                every 3 years, the Comptroller General of the United 
                States shall submit to Congress an assessment of the 
                operation of the Program during the most recent 3-year 
                period.
                    ``(B) Elements.--Each assessment submitted under 
                subparagraph (A) shall include, for the period covered 
                by the report--
                            ``(i) a review of the management, 
                        coordination, and industry utility of the 
                        Program;
                            ``(ii) an assessment of the extent to which 
                        the Program has furthered the purposes 
                        described in subsection (a)(2); and
                            ``(iii) such recommendations for 
                        legislative and administrative action as the 
                        Comptroller General considers appropriate to 
                        improve the Program.
    ``(g) Additional Authorities.--
            ``(1) Appointment of personnel and contracts.--The 
        Secretary of Commerce may appoint such personnel and enter into 
        such contracts, financial assistance agreements, and other 
        agreements as the Secretary considers necessary or appropriate 
        to carry out the Program including support for research and 
        development activities involving a center for manufacturing 
        innovation.
            ``(2) Transfer of funds.--The Secretary may transfer to 
        other Federal agencies such sums as the Secretary considers 
        necessary or appropriate to carry out the Program.
            ``(3) Authority of other agencies.--In the event that the 
        Secretary exercises the authority to transfer funds to another 
        agency under paragraph (2), such agency may award and 
        administer all aspects of financial assistance awards under 
        this section.
            ``(4) Use of resources.--In furtherance of the purposes of 
        the Program, the Secretary may use, with the consent of a 
        covered entity and with or without reimbursement, the land, 
        services, equipment, personnel, and facilities of such covered 
        entity.
            ``(5) Acceptance of resources.--In addition to amounts 
        appropriated to carry out the Program, the Secretary may accept 
        funds, services, equipment, personnel, and facilities from any 
        covered entity to carry out the Program.
            ``(6) Covered entity.--For purposes of this subsection, a 
        covered entity is any Federal department, Federal agency, 
        instrumentality of the United States, State, local government, 
        tribal government, Territory or possession of the United 
        States, or of any political subdivision thereof, or 
        international organization, or any public or private entity or 
        individual.
    ``(h) Patents.--Chapter 18 of title 35, United States Code, shall 
not apply if financial assistance is awarded under this section solely 
for the purpose of planning, establishing, or supporting new or 
existing centers for manufacturing innovation.
    ``(i) Funding.--
            ``(1) Network for manufacturing innovation fund.--
                    ``(A) Establishment.--There is established in the 
                Treasury of the United States a fund to be known as the 
                `Network for Manufacturing Innovation Fund' (referred 
                to in this paragraph as the `Fund').
                    ``(B) Elements.--There shall be deposited in the 
                Fund, which shall constitute the assets of the Fund, 
                amounts appropriated or otherwise made available to 
                carry out the Program.
                    ``(C) Availability.--Amounts deposited in the Fund 
                shall be available to the Secretary of Commerce, at the 
                discretion of the Secretary, or the Secretary's 
                delegee, to carry out the Program without further 
                appropriation and without fiscal year limitation.
            ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated $600,000,000 to the Secretary of Commerce to 
        carry out this section.
            ``(3) Administrative expenses.--The Secretary of Commerce 
        may use not more than 5 percent of the amounts appropriated 
        pursuant to paragraph (2) to pay the salaries, expenses, and 
        other administrative costs incurred by the Secretary under this 
        section.
            ``(4) Rescission.--There is hereby rescinded, from 
        appropriated discretionary funds that remain available for 
        obligation as of the date of the enactment of this Act, 
        $600,000,000.''.

SEC. 4. REPORT.

    (a) Defined Term.--In this section, the term ``rare earth 
monopoly'' means the domination of the market for rare earth elements, 
including--
            (1) rare earth oxides, metals, alloys, and magnets;
            (2) integrated systems that include rare earth components, 
        including wind turbines, motors, and catalysts for green 
        technology lighting and transportation in commercial products; 
        and
            (3) oxide, metal, or alloy-based rare earth materials, 
        magnets, components and systems for guided ordinance, stealth 
        and drone technologies, interrogating and targeting lasers, 
        radar, sonar, and weapons systems used by the United States 
        military.
    (b) Survey.--The Secretary of Commerce shall conduct a survey 
that--
            (1) measures the economic impact of China's rare earth 
        monopoly on the United States and other affected nations to 
        determine the magnitude of economic and intellectual property 
        loss resulting from China's rare earth monopoly; and
            (2) looks beyond gross economic figures of value added 
        goods and identifies specific technologies, industries, and 
        defense systems that are now primarily produced in, or are 
        likely to relocate or migrate to, China.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary of Commerce shall submit a report to 
Congress that contains the results of the survey conducted under 
subsection (a). The report shall contain recommendations on how the 
United States should--
            (1) initiate direct dialogue with affected nations to 
        assess the short- and long-term economic consequences of 
        China's rare earth monopoly and related trade practices; and
            (2) promote cooperative resolutions to facilitate 
        partnership structures that will offset imbalances caused by 
        China's rare earth monopoly.
                                 <all>
```