the purpose of demonstrations and technology trans-
fer; 
‘‘(2) the active transfer and dissemination of re-
search findings and Center expertise to a wide range 
of companies and enterprises, particularly small- and 
medium-sized manufacturers; and 
‘‘(3) the facilitation of collaborations and part-
nerships between small- and medium-sized manufac-
turing companies and community colleges and area 
career and technical education schools to help such 
colleges and schools better understand the specific 
needs of manufacturers and to help manufacturers 
better understand the skill sets that students learn 
in the programs offered by such colleges and schools. 
‘‘(c) OPERATIONS.— 
‘‘(1) FINANCIAL SUPPORT.—The Secretary may 
provide financial support to any Center created 
under subsection (a). The Secretary may not provide 
to a Center more than 50 percent of the capital and 
annual operating and maintenance funds required to 
create and maintain such Center. 
‘‘(2) REGULATIONS.—The Secretary shall im-
plement, review, and update the sections of the Code 
of Federal Regulations related to this section at 
least once every 3 years. 
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‘‘(3) APPLICATION.— 
‘‘(A) IN GENERAL.—Any nonprofit institu-
tion, or consortium thereof, or State or local 
government, may submit to the Secretary an 
application for financial support under this sec-
tion, in accordance with the procedures estab-
lished by the Secretary. 
‘‘(B) COST SHARING.—In order to receive 
assistance under this section, an applicant for 
financial assistance under subparagraph (A) 
shall provide adequate assurances that non- 
Federal assets obtained from the applicant and 
the applicant’s partnering organizations will be 
used as a funding source to meet not less than 
50 percent of the costs incurred. For purposes 
of the preceding sentence, the costs incurred 
means the costs incurred in connection with the 
activities undertaken to improve the competi-
tiveness, management, productivity, and techno-
logical performance of small- and medium-sized 
manufacturing companies. 
‘‘(C) AGREEMENTS
WITH
OTHER
ENTI-
TIES.—In meeting the 50 percent requirement, 
it is anticipated that a Center will enter into 
agreements with other entities such as private 
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industry, institutions of higher education, and 
State governments to accomplish programmatic 
objectives and access new and existing resources 
that will further the impact of the Federal in-
vestment made on behalf of small- and medium- 
sized manufacturing companies. 
‘‘(D) LEGAL
RIGHTS.—Each applicant 
under subparagraph (A) shall also submit a 
proposal for the allocation of the legal rights as-
sociated with any invention which may result 
from the proposed Center’s activities. 
‘‘(4) MERIT REVIEW.—The Secretary shall sub-
ject each such application to merit review. In mak-
ing a decision whether to approve such application 
and provide financial support under this section, the 
Secretary shall consider, at a minimum, the fol-
lowing: 
‘‘(A) The merits of the application, par-
ticularly those portions of the application re-
garding technology transfer, training and edu-
cation, and adaptation of manufacturing tech-
nologies to the needs of particular industrial 
sectors. 
‘‘(B) The quality of service to be provided. 
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‘‘(C) Geographical diversity and extent of 
service area. 
‘‘(D) The percentage of funding and 
amount of in-kind commitment from other 
sources. 
‘‘(5) EVALUATION.— 
‘‘(A) IN GENERAL.—Each Center that re-
ceives financial assistance under this section 
shall be evaluated during its third year of oper-
ation by an evaluation panel appointed by the 
Secretary. 
‘‘(B) COMPOSITION.—Each such evalua-
tion panel shall be composed of private experts, 
none of whom shall be connected with the in-
volved Center, and Federal officials. 
‘‘(C) CHAIR.—An official of the Institute 
shall chair the panel. 
‘‘(D) 
PERFORMANCE
MEASUREMENT.— 
Each evaluation panel shall measure the in-
volved Center’s performance against the objec-
tives specified in this section. 
‘‘(E) POSITIVE EVALUATION.—If the eval-
uation is positive, the Secretary may provide 
continued funding through the sixth year. 
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‘‘(F) PROBATION.—The Secretary shall 
not provide funding unless the Center has re-
ceived a positive evaluation. A Center that has 
not received a positive evaluation by the evalua-
tion panel shall be notified by the panel of the 
deficiencies in its performance and shall be 
placed on probation for 1 year, after which time 
the panel shall reevaluate the Center. If the 
Center has not addressed the deficiencies iden-
tified by the panel, or shown a significant im-
provement in its performance, the Director shall 
conduct a new competition to select an operator 
for the Center or may close the Center. 
‘‘(G) ADDITIONAL FINANCIAL SUPPORT.— 
After the sixth year, a Center may receive addi-
tional financial support under this section if it 
has received a positive evaluation through an 
independent review, under procedures estab-
lished by the Institute. 
‘‘(H) EIGHT-YEAR
REVIEW.—A Center 
shall undergo an independent review in the 
eighth year of operation. Each evaluation panel 
shall measure the Center’s performance against 
the objectives specified in this section. A Center 
that has not received a positive evaluation as a 
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result of an independent review shall be notified 
by the Program of the deficiencies in its per-
formance and shall be placed on probation for 
1 year, after which time the Program shall re-
evaluate the Center. If the Center has not ad-
dressed the deficiencies identified by the review, 
or shown a significant improvement in its per-
formance, the Director shall conduct a new 
competition to select an operator for the Center 
or may close the Center. 
‘‘(I) RECOMPETITION.—If a recipient of a 
Center award has received financial assistance 
for 10 consecutive years, the Director shall con-
duct a new competition to select an operator for 
the Center consistent with the plan required in 
this Act. Incumbent Center operators in good 
standing shall be eligible to compete for the new 
award. 
‘‘(J) REPORTS.— 
‘‘(i) PLAN.—Not later than 180 days 
after the date of enactment of the National 
Institute of Standards and Technology Im-
provement Act of 2016, the Director shall 
transmit to the Committee on Science, 
Space, and Technology of the House of 
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providing information on the first and sec-
ond years of operations for centers oper-
ating from new competitions or recompeti-
tion as compared to longstanding centers. 
The report shall provide detail on the en-
gagement in services provided by Centers 
and the characteristics of services pro-
vided, including volume and type of serv-
ices, so that the Committees can evaluate 
whether the cost-sharing ratio has an ef-
fect on the services provided at Centers. 
‘‘(6) PATENT RIGHTS.—The provisions of chap-
ter 18 of title 35, United States Code, shall apply, 
to the extent not inconsistent with this section, to 
the promotion of technology from research by Cen-
ters under this section except for contracts for such 
specific technology extension or transfer services as 
may be specified by statute or by the Director. 
‘‘(7) PROTECTION
OF
CENTER
CLIENT
CON-
FIDENTIAL INFORMATION.—Section 552 of title 5, 
United States Code, shall apply to the following in-
formation obtained by the Federal Government on a 
confidential basis in connection with the activities of 
any participant involved in the Hollings Manufac-
turing Extension Partnership: 
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‘‘(A) Information on the business operation 
of any participant in a Hollings Manufacturing 
Extension Partnership program or of a client of 
a Center. 
‘‘(B) Trade secrets possessed by any client 
of a Center. 
‘‘(8) ADVISORY BOARDS.—Each Center’s advi-
sory boards shall institute a conflict of interest pol-
icy, approved by the Director, that ensures the 
Board represents local small- and medium-sized 
manufacturers in the Center’s region. Board Mem-
bers may not serve as a vendor or provide services 
to the Center, nor may they serve on more than one 
Center’s oversight board simultaneously. 
‘‘(d) ACCEPTANCE OF FUNDS.— 
‘‘(1) IN GENERAL.—In addition to such sums 
as may be appropriated to the Secretary and Direc-
tor to operate the Hollings Manufacturing Extension 
Partnership, the Secretary and Director also may 
accept funds from other Federal departments and 
agencies and, under section 2(c)(7), from the private 
sector, to be available to the extent provided by ap-
propriations Acts, for the purpose of strengthening 
United States manufacturing. 
‘‘(2) ALLOCATION OF FUNDS.— 
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‘‘(A) FUNDS ACCEPTED FROM OTHER FED-
ERAL DEPARTMENTS OR AGENCIES.—The Di-
rector shall determine whether funds accepted 
from other Federal departments or agencies 
shall be counted in the calculation of the Fed-
eral share of capital and annual operating and 
maintenance costs under subsection (c). 
‘‘(B) FUNDS ACCEPTED FROM THE PRI-
VATE SECTOR.—Funds accepted from the pri-
vate sector under section 2(c)(7), if allocated to 
a Center, may not be considered in the calcula-
tion of the Federal share under subsection (c) 
of this section. 
‘‘(e) MEP ADVISORY BOARD.— 
‘‘(1) ESTABLISHMENT.—There is established 
within the Institute a Manufacturing Extension 
Partnership Advisory Board (in this subsection re-
ferred to as the ‘MEP Advisory Board’). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN
GENERAL.—The MEP Advisory 
Board shall consist of not fewer than 10 mem-
bers broadly representative of stakeholders, to 
be appointed by the Director. At least two 
members shall be employed by or on an advi-
sory board for the Centers, at least one member 
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shall represent a community college, and at 
least five other members shall be from United 
States small businesses in the manufacturing 
sector. No member shall be an employee of the 
Federal Government. 
‘‘(B) TERM.—Except as provided in sub-
paragraph (C) or (D), the term of office of each 
member of the MEP Advisory Board shall be 3 
years. 
‘‘(C) VACANCIES.—Any member appointed 
to fill a vacancy occurring prior to the expira-
tion of the term for which his predecessor was 
appointed shall be appointed for the remainder 
of such term. 
‘‘(D) SERVING
CONSECUTIVE
TERMS.— 
Any person who has completed two consecutive 
full terms of service on the MEP Advisory 
Board shall thereafter be ineligible for appoint-
ment during the 1-year period following the ex-
piration of the second such term. 
‘‘(3) MEETINGS.—The MEP Advisory Board 
shall meet not less than two times annually and 
shall provide to the Director— 
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‘‘(A) advice on Hollings Manufacturing 
Extension Partnership programs, plans, and 
policies; 
‘‘(B) assessments of the soundness of Hol-
lings Manufacturing Extension Partnership 
plans and strategies; and 
‘‘(C) assessments of current performance 
against 
Hollings 
Manufacturing 
Extension 
Partnership program plans. 
‘‘(4) FEDERAL ADVISORY COMMITTEE ACT AP-
PLICABILITY.— 
‘‘(A) IN GENERAL.—In discharging its du-
ties under this subsection, the MEP Advisory 
Board shall function solely in an advisory ca-
pacity, in accordance with the Federal Advisory 
Committee Act. 
‘‘(B) EXCEPTION.—Section 14 of the Fed-
eral Advisory Committee Act shall not apply to 
the MEP Advisory Board. 
‘‘(5) REPORT.—The MEP Advisory Board shall 
transmit an annual report to the Secretary for 
transmittal to Congress within 30 days after the 
submission to Congress of the President’s annual 
budget request in each year. Such report shall ad-
dress the status of the program established pursuant 
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to this section and comment on the relevant sections 
of the programmatic planning document and updates 
thereto transmitted to Congress by the Director 
under subsections (c) and (d) of section 23. 
‘‘(f) COMPETITIVE GRANT PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Director shall es-
tablish, within the Hollings Manufacturing Exten-
sion Partnership, under this section and section 26, 
a program of competitive awards among participants 
described in paragraph (2) for the purposes de-
scribed in paragraph (3). 
‘‘(2) 
PARTICIPANTS.—Participants 
receiving 
awards under this subsection shall be the Centers, or 
a consortium of such Centers. 
‘‘(3) PURPOSE.—The purpose of the program 
under this subsection is to add capabilities to the 
Hollings Manufacturing Extension Partnership, in-
cluding the development of projects to solve new or 
emerging manufacturing problems as determined by 
the Director, in consultation with the Director of the 
Hollings Manufacturing Extension Partnership pro-
gram, the MEP Advisory Board, and small- and me-
dium-sized manufacturers. One or more themes for 
the competition may be identified, which may vary 
from year to year, depending on the needs of manu-
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facturers and the success of previous competitions. 
Centers may be reimbursed for costs incurred under 
the program. 
‘‘(4) APPLICATIONS.—Applications for awards 
under this subsection shall be submitted in such 
manner, at such time, and containing such informa-
tion as the Director shall require, in consultation 
with the MEP Advisory Board. 
‘‘(5) SELECTION.—Awards under this sub-
section shall be peer reviewed and competitively 
awarded. The Director shall endeavor to have broad 
geographic diversity among selected proposals. The 
Director shall select proposals to receive awards that 
will— 
‘‘(A) improve the competitiveness of indus-
tries in the region in which the Center or Cen-
ters are located; 
‘‘(B) create jobs or train newly hired em-
ployees; and 
‘‘(C) promote the transfer and commer-
cialization of research and technology from in-
stitutions of higher education, national labora-
tories, and nonprofit research institutes. 
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‘‘(6) PROGRAM CONTRIBUTION.—Recipients of 
awards under this subsection shall not be required 
to provide a matching contribution. 
‘‘(7) GLOBAL
MARKETPLACE
PROJECTS.—In 
making awards under this subsection, the Director, 
in consultation with the MEP Advisory Board and 
the Secretary, may take into consideration whether 
an application has significant potential for enhanc-
ing the competitiveness of small- and medium-sized 
United States manufacturers in the global market-
place. 
‘‘(8) DURATION.—Awards under this subsection 
shall last no longer than 3 years. 
‘‘(g) EVALUATION OF OBSTACLES UNIQUE TO SMALL 
MANUFACTURERS.—The Director shall— 
‘‘(1) evaluate obstacles that are unique to small 
manufacturers that prevent such manufacturers 
from effectively competing in the global market; 
‘‘(2) implement a comprehensive plan to train 
the Centers to address such obstacles; and 
‘‘(3) facilitate improved communication between 
the Centers to assist such manufacturers in imple-
menting appropriate, targeted solutions to such ob-
stacles. 
‘‘(h) DEFINITIONS.—In this section— 
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‘‘(1) the term ‘area career and technical edu-
cation school’ has the meaning given such term in 
section 3 of the Carl D. Perkins Career and Tech-
nical Education Improvement Act of 2006 (20 
U.S.C. 2302); and 
‘‘(2) the term ‘community college’ means an in-
stitution of higher education (as defined under sec-
tion 101(a) of the Higher Education Act of 1965 
(20 U.S.C. 1001(a))) at which the highest degree 
that is predominately awarded to students is an as-
sociate’s degree.’’. 
SEC. 9. ELIMINATION OF OBSOLETE REPORTS. 
Section 28 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278n) is amended— 
(1) by striking subsection (g); and 
(2) in subsection (k)— 
(A) in paragraph (3), by inserting ‘‘and’’ 
after the semicolon at the end; 
(B) in paragraph (4)(B), by striking ‘‘; 
and’’ at the end and inserting a period; and 
(C) by striking paragraph (5). 
SEC. 10. MODIFICATIONS TO GRANTS AND COOPERATIVE 
AGREEMENTS. 
Section 8(a) of the Stevenson-Wydler Technology In-
novation Act of 1980 (15 U.S.C. 3706(a)) is amended by 
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striking ‘‘The total amount of any such grant or coopera-
tive agreement may not exceed 75 percent of the total cost 
of the program.’’. 
SEC. 11. INFORMATION SYSTEMS STANDARDS CONSULTA-
TION. 
Section 20(c)(1) of the National Institute of Stand-
ards and Technology Act (15 U.S.C. 278g–3(c)(1)) is 
amended by striking ‘‘the National Security Agency,’’. 
SEC. 12. UNITED STATES-ISRAELI COOPERATION. 
It is the Sense of Congress that— 
(1) partnerships that facilitate basic scientific 
research between the United States and Israel ad-
vance technology development, innovation, and com-
mercialization leading to growth in various sectors, 
including manufacturing, and creating benefits for 
both nations; 
(2) joint research and development agreements 
carried out through government organizations like 
the National Institute of Standards and Technology 
support these efforts; 
(3) partnerships between the United States and 
Israel that further the basic scientific enterprise 
should be encouraged; and 
(4) the National Institute of Standards and 
Technology should continue to facilitate scientific 
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collaborations between Israel and United States 
technical agencies working in measurement science 
and standardization. 
Æ 
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