II 

113TH CONGRESS 

1ST SESSION S. 63 

To require the Secretary of Commerce and the Secretary of Labor to establish 

the Made In America Incentive Grant Program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 22 (legislative day, JANUARY 3), 2013 

Mrs. GILLIBRAND (for herself, Mr. LAUTENBERG, Mr. MERKLEY, Mr. 

BLUMENTHAL, and Mr. COONS) 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 and the Secretary 

of Labor to establish the Made In America Incentive 

Grant Program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Made In America Man5 ufacturing Act of 2013’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) INDUSTRY CLUSTER.—The term ‘‘industry 

9 cluster’’ means a concentration of interconnected 


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1 businesses, suppliers, research and development enti2 ties, service providers, and associated institutions in 

3 a particular field that are linked by common manu4 facturing and workforce needs. 

5 (2) MANUFACTURER.—The term ‘‘manufac6 turer’’ shall be defined by the Secretary of Com7 merce in accordance with the North American In8 dustry Classification System. 

9 (3) NATIONALLY PORTABLE.—The term ‘‘na10 tionally portable’’, with respect to a credential, 

11 means a credential that is sought or accepted by 

12 businesses within the industry sector involved, across 

13 multiple States, as a recognized, preferred, or re14 quired credential for recruitment, screening, ad15 vancement, or hiring purposes. 

16 (4) PROGRAM.—The term ‘‘Program’’ means 

17 the program established under section 3(a). 

18 (5) REGIONAL PARTNERSHIP.—The term ‘‘re19 gional partnership’’ means a collaborative group 

20 that— 

21 (A) organizes key stakeholders in a tar22 geted industry cluster or broader manufac23 turing partnership into a working group that 

24 focuses on the needs of manufacturers in order 


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1 to implement a manufacturing enhancement 

2 strategy; 

3 (B) includes, at the appropriate stage of 

4 development of the partnership— 

5 (i) representatives of multiple firms or 

6 employers in the targeted industry cluster, 

7 including small- or medium-sized manufac8 turers and large manufacturers when prac9 ticable; 

10 (ii) one or more representatives of 

11 State labor organizations, central labor 

12 coalitions, or other labor organizations, ex13 cept in instances where no labor represen14 tation exists; 

15 (iii) one or more representatives of 

16 postsecondary educational institutions or 

17 other training providers; 

18 (iv) one or more representatives of 

19 State workforce agencies or other entities 

20 providing employment services; and 

21 (v) one or more representatives of a 

22 State or local government or Indian tribe 

23 (as defined in section 4 of the Indian Self24 Determination and Education Assistance 

25 Act (25 U.S.C. 450b)); 


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1 (C) may include representatives of— 

2 (i) State or local economic develop3 ment agencies; 

4 (ii) other State or local agencies; 

5 (iii) chambers of commerce; 

6 (iv) nonprofit organizations; 

7 (v) philanthropic organizations; 

8 (vi) economic development organiza9 tions; 

10 (vii) industry associations; 

11 (viii) a local or regional Hollings Man12 ufacturing Extension Center; and 

13 (ix) other organizations, as deter14 mined necessary by the members com15 prising the industry or sector partnership; 

16 and 

17 (D) designates as the fiscal agent for the 

18 collaborative group a not-for-profit organization 

19 or government entity that is a member of the 

20 collaborative group. 

21 (6) SMALL-SIZED MANUFACTURER.—The term 

22 ‘‘small-sized manufacturer’’ means a manufacturer 

23 that is a small business concern. 

24 (7) SMALL BUSINESS CONCERN.—The term 

25 ‘‘small business concern’’ has the meaning given 


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1 such term under section 3 of the Small Business Act 

2 (15 U.S.C. 632). 

3 (8) STATE.—The term ‘‘State’’ means each of 

4 the 50 States, the District of Columbia, and any ter5 ritory or possession of the United States. 

6 SEC. 3. ESTABLISHMENT OF MADE IN AMERICA INCENTIVE 

7 GRANT PROGRAM. 

8 (a) ESTABLISHMENT.—Not later than 180 days after 

9 the date of the enactment of this Act, the Secretary of 

10 Commerce and the Secretary of Labor shall jointly estab11 lish a program under which the secretaries shall jointly 

12 award incentive grants to eligible entities to support the 

13 manufacturing industry in the United States. 

14 (b) ADMINISTRATION.—The Secretary of Labor shall 

15 administer the Program with respect to all matters relat16 ing to the use of incentive grants for job training and the 

17 Secretary of Commerce shall administer the Program with 

18 respect to all other matters. 

19 (c) ELIGIBLE ENTITIES.—For purposes of the Pro20 gram, an eligible entity is any of the following: 

21 (1) A State. 

22 (2) A regional partnership. 

23 (d) DESIGNATION.—The program established under 

24 subsection (a) shall be known as the ‘‘Made In America 

25 Incentive Grant Program’’. 


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1 (e) COORDINATION.—In carrying out the Program, 

2 the Secretary of Commerce and the Secretary of Labor 

3 shall coordinate with such other heads of Federal agencies 

4 as the secretaries consider appropriate. 

5 SEC. 4. INCENTIVE GRANTS. 

6 (a) MAXIMUM AMOUNT.—An incentive grant award7 ed by the Secretary of Commerce and the Secretary of 

8 Labor under the Program may not exceed $20,000,000. 

9 (b) USE OF FUNDS.—An incentive grant awarded by 

10 the Secretary of Commerce and the Secretary of Labor 

11 under the Program shall be used by the recipient of the 

12 incentive grant to carry out a manufacturing enhancement 

13 strategy through the following: 

14 (1) Establishing a revolving loan fund to issue 

15 loans to manufacturers to finance the cost of any of 

16 the following: 

17 (A) Retooling, retrofitting, expanding, or 

18 establishing (including applicable engineering 

19 costs) a manufacturer in the United States, in20 cluding with respect to equipment, facilities, in21 frastructure, or capital. 

22 (B) Activities relating to improving the en23 ergy or process efficiency of a manufacturer, 

24 but not relating to or involving training. 


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1 (2) Retraining the employees of the manufac2 turers, including through the awarding of grants to 

3 not-for-profit third parties— 

4 (A) to provide skills necessary to operate 

5 new or advanced manufacturing equipment; or 

6 (B) to sustain or improve the processes of 

7 the manufacturer. 

8 (3) Training new employees of the manufactur9 ers, including through the awarding of grants to not10 for-profit third parties— 

11 (A) to provide on-the-job training; 

12 (B) to provide off-site training; 

13 (C) for classroom and on-site experiential 

14 learning; 

15 (D) for the development and implementa16 tion of registered apprenticeship programs; and 

17 (E) for such other activities as the Sec18 retary of Labor considers appropriate for train19 ing new employees of the manufacturers. 

20 (4) Creating or expanding export activity and 

21 domestic supply chain opportunities by providing 

22 capital and technical expertise to the manufactur23 ers— 


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1 (A) to facilitate new connections in domes2 tic supply chains between small-sized manufac3 turers and other manufacturers; and 

4 (B) for such other activities as the Sec5 retary of Commerce considers appropriate. 

6 (5) Such other activities as the Secretary of 

7 Commerce and the Secretary of Labor consider ap8 propriate to carry out a manufacturing enhancement 

9 strategy. 

10 (c) INTEREST RATES.—Loans issued under sub11 section (b)(1) shall bear an interest rate determined by 

12 the entity receiving the incentive grant as follows: 

13 (1) The interest rate shall enable the loan re14 cipient to accomplish the activities described in sub15 paragraphs (A) and (B) of subsection (b)(1). 

16 (2) The interest rate may be set below market 

17 interest rates. 

18 (3) The interest rate may not be less than zero 

19 percent. 

20 (4) The interest rate may not exceed the cur21 rent prime rate plus 500 basis points. 

22 (d) USE OF FUNDS IN UNITED STATES.—A recipient 

23 of an incentive grant under the Program may only use 

24 such grant to carry out activities in the United States and 

25 to improve manufacturing in the United States. 


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1 SEC. 5. REQUIREMENTS FOR INCENTIVE GRANT RECIPI2 ENTS. 

3 (a) APPLICATION.— 

4 (1) IN GENERAL.—An entity seeking an incen5 tive grant under the Program shall submit to the 

6 Secretary of Commerce and the Secretary of Labor 

7 an application therefor at such time, in such form, 

8 and in such manner as the Secretary of Commerce 

9 and the Secretary of Labor may require. 

10 (2) ELEMENTS.—Each application submitted 

11 under paragraph (1) shall include the following: 

12 (A) The manufacturing enhancement strat13 egy for which the entity is seeking an incentive 

14 grant under the Program. 

15 (B) Such other information as the Sec16 retary of Commerce and the Secretary of Labor 

17 consider appropriate. 

18 (3) PROPOSED MANUFACTURING ENHANCE19 MENT STRATEGY.—Each manufacturing enhance20 ment strategy submitted under paragraph (2)(A) by 

21 an entity for an incentive grant shall include the fol22 lowing: 

23 (A) A description of the plans of the entity 

24 to make loans or grants to third parties with 

25 funds from the incentive grant and how such 

26 plans will improve the competitiveness of a parVerDate Mar 15 2010 03:07 Jan 29, 2013 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S63.IS S63

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1 ticular industry cluster identified by the entity 

2 and of manufacturing in the United States in 

3 one or more industries. 

4 (B) A description of the expected economic 

5 return on investment of the entity’s manufac6 turing enhancement strategy with respect to the 

7 incentive grant, including the following: 

8 (i) The number of jobs to be created 

9 or retained by third-party recipients of 

10 loans or grants issued or awarded by the 

11 entity under the Program. 

12 (ii) The sales to be increased or re13 tained by such third-party recipients. 

14 (iii) The cost savings to be achieved 

15 by such third-party recipients due to en16 ergy efficiency savings or other activities 

17 supported by loans issued or grants award18 ed by the entity under the Program. 

19 (iv) The workforce training invest20 ments to be made by the entity or such 

21 third-party recipients, including— 

22 (I) the number of training hours 

23 to be provided; and 

24 (II) a description of the nation25 ally portable, industry recognized creVerDate Mar 15 2010 03:07 Jan 29, 2013 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S63.IS S63

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1 dentials or, if not available, other cre2 dentials, related to the targeted indus3 try cluster that the entity proposes to 

4 support, develop, or use as a perform5 ance measure, in order to carry out 

6 the goals of the entity with respect to 

7 the proposed manufacturing enhance8 ment strategy. 

9 (v) The amount of capital and tech10 nical assistance to be provided to manufac11 turers to expand the export opportunities, 

12 facilitate new domestic supply chains, or 

13 carry out other authorized activities. 

14 (vi) Private investments from the 

15 third-party recipients or affiliated private 

16 investors leveraged by grant funding. 

17 (vii) How the entity will address, to 

18 the extent practicable, economic distress, 

19 including high rates of unemployment, sit20 uations of sudden and severe economic dis21 location, in particular where mass layoffs 

22 result in a precipitous increase in unem23 ployment, and such other similar issues of 

24 economic distress as the Secretary of Com25 merce considers appropriate. 


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1 (C) A description of how the entity intends 

2 to establish a Made In America Partnership 

3 Board— 

4 (i) to assist the entity in issuing loans 

5 and awarding grants to third parties; 

6 (ii) to ensure the coordination and 

7 best use of Federal, State, regional, and 

8 local assets and resources for the imple9 mentation of the proposed manufacturing 

10 enhancement strategy; and 

11 (iii) which shall be comprised of, to 

12 the extent practicable, representatives of— 

13 (I) economic development agen14 cies of State and local governments; 

15 (II) departments of labor; 

16 (III) workforce investment 

17 boards and agencies; 

18 (IV) institutions of higher edu19 cation, including community colleges 

20 run by a State; 

21 (V) economic development orga22 nizations; 

23 (VI) chambers of commerce; 

24 (VII) nonprofit organizations; 


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1 (VIII) philanthropic organiza2 tions; 

3 (IX) industry associations; 

4 (X) labor organizations; 

5 (XI) a local or regional Hollings 

6 Manufacturing Extension Center; and 

7 (XII) such other organizations or 

8 entities as the entity considers appro9 priate. 

10 (D) A description of the plans of the entity 

11 to foster, through the Made In America Part12 nership Board established by the entity, collabo13 ration between Federal entities, State and local 

14 economic development organizations and agen15 cies, State and local workforce development or16 ganizations and agencies, manufacturers, and 

17 institutions of higher education (including com18 munity colleges run by a State)— 

19 (i) to improve resource allocation, in20 cluding coordinating the use of other Fed21 eral, State, and local funding sources to 

22 improve intended results; 

23 (ii) to identify opportunities to lever24 age additional public and private funding 


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1 for the purposes of implementing the man2 ufacturing enhancement strategy; and 

3 (iii) to ensure comprehensive coun4 seling, technical assistance, workforce de5 velopment, and export assistance are pro6 vided to manufacturers. 

7 (b) PRIORITY FOR ENTITIES WITH MATCHING

8 FUNDS.— 

9 (1) IN GENERAL.—In awarding incentive grants 

10 under the Program to entities to carry out manufac11 turing enhancement strategies, the Secretary of 

12 Commerce and the Secretary of Labor shall give pri13 ority to an entity that, with respect to the costs to 

14 be incurred by the entity in carrying out a manufac15 turing enhancement strategy under the Program, 

16 the entity identifies and commits contributions in an 

17 amount equal to not less than 50 percent of Federal 

18 funds provided under the incentive grant. 

19 (2) SOURCE OF CONTRIBUTIONS.—A contribu20 tion described in paragraph (1) may consist of non21 Federal funds, in-kind contributions, including con22 tributions of space, equipment, services, and such 

23 other kinds of funds and contributions as the Sec24 retary of Commerce and the Secretary of Labor con25 sider appropriate. 


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1 (c) COORDINATION WITH HOLLINGS MANUFAC2 TURING EXTENSION CENTERS.—Each recipient of an in3 centive grant under the Program shall coordinate with a 

4 Hollings Manufacturing Extension Center as a preferred 

5 provider of services to implement the manufacturing en6 hancement strategy of the recipient as determined by the 

7 Secretary of Commerce and the Secretary of Labor. 

8 (d) WORKFORCE TRAINING INVESTMENTS.— 

9 (1) IN GENERAL.—Not more than half of 

10 amounts appropriated or otherwise made available to 

11 carry out the Program may be used as described in 

12 paragraphs (2) and (3) of section 4(b). 

13 (2) TRAINING AND RETRAINING OF EMPLOY14 EES.—Each recipient of an incentive grant under 

15 the Program shall, with respect to training new em16 ployees and retraining employees of manufacturers, 

17 help postsecondary educational institutions, training 

18 institutions, apprenticeship programs, and other 

19 training programs align curricula, entrance require20 ments, and programs to industry demand and na21 tionally portable, industry-recognized credentials (or, 

22 if not available for the targeted industry, other cre23 dentials, as the Secretary of Labor considers appro24 priate), particularly for higher skill, high-priority ocVerDate Mar 15 2010 03:07 Jan 29, 2013 Jkt 029200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S63.IS S63

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1 cupations (as determined by the Secretary of 

2 Labor). 

3 (e) ADMINISTRATIVE EXPENSES.—A recipient of an 

4 incentive grant under the Program may only use such 

5 amount of the incentive grant for costs associated with 

6 administering the incentive grant as the Secretary of Com7 merce and the Secretary of Labor shall specify in solicita8 tions for applications for incentive grants. 

9 (f) ANNUAL REPORTS.—For each recipient of an in10 centive grant awarded under the Program, not later than 

11 1 year after the date on which the recipient first receives 

12 funds under the Program, and not less frequently than 

13 once each year thereafter, the recipient shall submit to the 

14 Secretary of Commerce and the Secretary of Labor a re15 port describing— 

16 (1) the loans and grants issued and awarded by 

17 the recipient to third parties using incentive grant 

18 funds; 

19 (2) the achievements with respect to the goals 

20 identified in the proposed manufacturing enhance21 ment strategy of the grant recipient; 

22 (3) for each third-party recipient, the achieve23 ments of such third party with respect to relevant 

24 goals specified in the proposed manufacturing en25 hancement strategy of the grant recipient; and 


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1 (4) in the case of a recipient who used grants 

2 amounts as described in paragraphs (2) and (3) of 

3 section 4(b), common employment outcomes using 

4 measures established by the Secretary of Labor. 

5 SEC. 6. ESTABLISHMENT OF STATE AND LOCAL ADVISORY 

6 COMMITTEE REQUIRED. 

7 The Secretary of Commerce and the Secretary of 

8 Labor shall jointly establish an advisory committee to ad9 vise the secretaries with respect to implementing and eval10 uating the Program, which shall be comprised of the fol11 lowing: 

12 (1) One or more individuals who represent a 

13 State government. 

14 (2) One or more individuals who represent a 

15 local government. 

16 (3) One or more individuals who represent a re17 gional planning organization or economic develop18 ment organization. 

19 (4) One or more individuals who represent the 

20 education sector. 

21 (5) One or more individuals who represent the 

22 manufacturing sector. 

23 (6) One or more individuals who represent a 

24 labor organization. 


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1 (7) Such other individuals as the Secretary con2 siders appropriate. 

3 SEC. 7. REVIEW AND EVALUATION. 

4 (a) GRANT RECIPIENTS.—The Secretary of Com5 merce and the Secretary of Labor may review and evaluate 

6 the performance of a recipient of an incentive grant under 

7 the Program as the secretaries consider appropriate. 

8 (b) INELIGIBILITY FOR FUTURE GRANTS.—The Sec9 retary of Commerce and the Secretary of Labor may de10 termine a recipient of an incentive grant under the Pro11 gram to be ineligible to receive additional incentive grants 

12 under the Program if the Secretary determines that the 

13 recipient has failed to achieve compliance with— 

14 (1) any applicable guideline or regulation of the 

15 Secretary relating to the Program, including with re16 spect to the misuse or misappropriation of funds 

17 provided under the Program; or 

18 (2) the proposed manufacturing enhancement 

19 strategy of the recipient. 

Æ 


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