II 113th CONGRESS 1st Session S. 1468 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.

1. Short title This Act may be cited as the Revitalize American Manufacturing and Innovation Act of 2013 . 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. 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: 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. . 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.