II Calendar No. 475 118th CONGRESS 2d Session S. 1956 IN THE SENATE OF THE UNITED STATES June 13, 2023 Ms. Baldwin (for herself and Mr. Vance ) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation August 1, 2024 Reported by Ms. Cantwell , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To improve the commercialization of Federal research by domestic manufacturers, and for other purposes.

1. Short title This Act may be cited as the Invent Here, Make Here Act of 2023 . 2. Improvement of commercialization of Federal research by domestic manufacturers Section 2 of the National Institute of Standards and Technology Act ( 15 U.S.C. 272 ) is amended by adding at the end the following: (f) Commercialization of Federal research by domestic manufacturers In order for the Institute to meet the need described in section 1(a)(1) and most effectively carry out the activities under subsection (c)(1) of this section, the Director shall— (1) coordinate with the Manufacturing USA Network established under section 34(c)(1) to identify domestic manufacturers that can develop commercial products based on research conducted by Federal agencies; (2) work with the Administrator of the Small Business Administration to identify domestic investors to support the development of commercial products based on research conducted by Federal agencies; and (3) coordinate with the Director of the Made in America Office at the Office of Management and Budget to use the procedures described in section 204(c)(2)(A)(i) of title 35, United States Code, to identify appropriate domestic manufacturers and investors to commercialize products based on Federal research and manufacture such products in the United States. . 3. Study and comprehensive review of commercialization of Federal research by domestic manufacturers Not later than 540 days after the date of enactment of this Act, the Director of the National Institute of Standards and Technology shall— (1) complete a study and comprehensive review of the commercialization of Federal research by domestic manufacturers that— (A) addresses— (i) what barriers currently (as of the date on which the study is completed) exist for domestic manufacturers to commercialize Federal research; and (ii) what role investment and the availability of investors plays in the encouragement or discouragement of the commercialization of Federal research by domestic manufacturers; and (B) provides recommendations for modifications to the comprehensive strategic plan developed and implemented pursuant to section 107 of the American Innovation and Competitiveness Act ( 15 U.S.C. 272 note) to ensure that Federal science, engineering, and technology research is being transferred to domestic manufacturers to modernize manufacturing processes in accordance with section 2(b)(1) of the National Institute of Standards and Technology Act ( 15 U.S.C. 272(b)(1) ); and (2) submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives a report on the findings of the Director with respect to the study and review completed under paragraph (1). 4. Preference for United States industry Section 204 of title 35, United States Code, is amended to read as follows: 204. Preference for United States industry (a) Definitions In this section: (1) Country of concern The term country of concern means a country that— (A) is a covered nation, as that term is defined in section 4872(d) of title 10; or (B) the Secretary of Commerce determines is engaged in conduct that is detrimental to the national security of the United States. (2) Manufactured substantially in the United States The term manufactured substantially in the United States means manufactured substantially from all articles, materials, or supplies mined, produced, or manufactured in the United States. (3) Relevant congressional committees The term relevant congressional committees means— (A) the Committee on Commerce, Science, and Transportation of the Senate; and (B) the Committee on Science, Space, and Technology of the House of Representatives. (b) General preference Notwithstanding any other provision of this chapter, and subject to subsection (c), no small business firm or nonprofit organization which receives title to any subject invention and no assignee of any such small business firm or nonprofit organization shall grant to any person the exclusive right to use or sell any subject invention unless such person agrees that any products embodying the subject invention or produced through the use of the subject invention will be manufactured substantially in the United States. (c) Waivers (1) In general In individual cases, subject to paragraph (2), the requirement for an agreement described in subsection (b) may be waived by the Federal agency under whose funding agreement the applicable subject invention was made upon a showing by the small business firm, nonprofit organization, or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible. (2) Conditions on waivers (A) Before grant of waiver Before granting a waiver under paragraph (1), a Federal agency shall— (i) comply with the procedures developed and implemented pursuant to section 70923(b)(2) of the Build America, Buy America Act (subtitle A of title IX of division G of Public Law 117–58 ); and (ii) in carrying out clause (i), preserve the confidentiality or trade sensitive nature of information included in the applicable application for a license. (B) Prohibition on granting certain waivers A Federal agency may not grant a waiver under paragraph (1) if, as a result of the waiver, products embodying the applicable subject invention, or produced through the use of the applicable subject invention, will be manufactured substantially in a country of concern. (3) Annual report to congressional committees Not later than 1 year after the date of enactment of the Invent Here, Make Here Act of 2023 , and annually thereafter, each Federal agency that, during the preceding year, has received a request for a waiver under this subsection shall submit to the relevant congressional committees a report regarding the decision of the Federal agency to grant or deny each such request. . 5. Amendments to the Directorate for Technology, Innovation, and Partnerships Subtitle G of title III of the Research and Development, Competition, and Innovation Act ( 42 U.S.C. 19101 et seq. ) is amended— (1) in section 10382— (A) in paragraph (2), by striking and after the semicolon; (B) in paragraph (3), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (4) ensure that products developed through research funded by the Directorate will be manufactured in the United States. ; (2) in section 10383— (A) in paragraph (2), in the matter preceding subparagraph (A), by striking products, and inserting products that will be manufactured in the United States, ; (B) in paragraph (4)(C), by inserting producing, after capable of ; (C) in paragraph (6), by striking and after the semicolon; (D) in paragraph (7), by striking the period at the end and inserting ; and ; and (E) by adding at the end the following: (8) develop industrial capacity to produce innovations competitively in the United States for the global marketplace. ; (3) in section 10384— (A) in paragraph (1), by striking and after the semicolon; (B) in paragraph (2), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (3) maximizes economic benefits by ensuring that innovations developed from research awards are produced in the United States. ; (4) in section 10385— (A) in subsection (b)(1), by striking and commercialization and inserting commercialization, and domestic production ; and (B) in subsection (c)(2), by striking and commercialization and inserting commercialization, and domestic production ; (5) in section 10386(b)(2), by inserting with domestic manufacturing operations after private sector ; (6) in section 10389(a), by striking and commercialization and inserting commercialization, and domestic production ; (7) in section 10391(a), by striking and commercialization and inserting commercialization, and domestic production ; and (8) in section 10394(f)(5), by striking and, as appropriate, commercializing and inserting , commercializing, and producing .

1. Short title This Act may be cited as the Invent Here, Make Here Act of 2024 . 2. Improvement of commercialization of Federal research by domestic manufacturers Section 2 of the National Institute of Standards and Technology Act ( 15 U.S.C. 272 ) is amended by adding at the end the following: (f) Commercialization of Federal research by domestic manufacturers In order for the Institute to meet the need described in section 1(a)(1) and most effectively carry out the activities under subsection (c)(1) of this section, the Director shall— (1) coordinate with the Secretary of Defense, the Secretary of Energy, the Director of the National Science Foundation, and industry organizations to identify domestic manufacturers that can develop commercial products based on completed research conducted by Federal agencies; (2) work with the Administrator of the Small Business Administration to identify domestic investors to support the development of commercial products based on research conducted by Federal agencies; and (3) maintain a publicly accessible and searchable database of domestic manufacturers and their capabilities with respect to commercialization of federally funded research. . 3. Study and comprehensive review of commercialization of Federal research by domestic manufacturers Not later than 540 days after the date of enactment of this Act, the Director of the National Institute of Standards and Technology shall— (1) complete a study and comprehensive review of the commercialization of Federal research by domestic manufacturers that— (A) addresses— (i) what barriers currently (as of the date on which the study is completed) exist for domestic manufacturers to commercialize Federal research; and (ii) what role investment and the availability of investors plays in the encouragement or discouragement of the commercialization of Federal research by domestic manufacturers; and (B) provides recommendations for modifications to the comprehensive strategic plan developed and implemented pursuant to section 107 of the American Innovation and Competitiveness Act ( 15 U.S.C. 272 note) to ensure that Federal science, engineering, and technology research is being transferred to domestic manufacturers to modernize manufacturing processes in accordance with section 2(b)(1) of the National Institute of Standards and Technology Act ( 15 U.S.C. 272(b)(1) ); and (2) submit to the Committee on Commerce, Science, and Transportation of the Senate, the Committee on the Judiciary of the Senate, the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on the Judiciary of the House of Representatives a report on the findings of the Director with respect to the study and review completed under paragraph (1). 4. Preference for United States industry Section 204 of title 35, United States Code, is amended to read as follows: 204. Preference for United States industry (a) Definitions In this section: (1) Country of concern The term country of concern has the meaning given the term covered nation in section 4872(d) of title 10. (2) Relevant congressional committees The term relevant congressional committees means— (A) the Committee on Commerce, Science, and Transportation of the Senate; (B) the Committee on the Judiciary of the Senate; (C) the Committee on Science, Space, and Technology of the House of Representatives; and (D) the Committee on the Judiciary of the House of Representatives. (b) General preference Notwithstanding any other provision of this chapter, and subject to subsection (c), no small business firm or nonprofit organization which receives title to any subject invention and no assignee of any such small business firm or nonprofit organization shall grant to any person the exclusive right to use or sell any subject invention in the United States unless such person agrees that any products embodying the subject invention or produced through the use of the subject invention will be manufactured substantially in the United States. (c) Waivers (1) In general In individual cases, subject to paragraphs (2) and (3), the Federal agency under whose funding agreement the applicable subject invention was made may waive the requirement for an agreement described in subsection (b) upon a showing by the applicable small business firm, nonprofit organization, or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible. (2) Review timeline Not later than 90 days after the date on which a Federal agency receives a request for a waiver described in paragraph (1) and with respect to which paragraph (3) does not apply, the Federal agency shall issue a decision regarding whether to grant the request. (3) Prohibition on granting certain waivers without presidential authorization If granting a waiver under paragraph (1) would result in products embodying the applicable subject invention or produced through the use of the applicable subject invention being manufactured substantially in a country of concern, the applicable Federal agency may not grant the waiver without the written authorization of the President (or a designee of the President). (4) Annual report to congressional committees (A) In general Not later than 1 year after the date of enactment of the Invent Here, Make Here Act of 2024 , and annually thereafter, each Federal agency with respect to which, during the preceding year, a nonprofit organization or small business firm that is a party to a funding agreement with the Federal agency elected to retain title under section 202 to the subject invention that was the subject of that funding agreement shall submit to the relevant congressional committees a report that includes the information described in subparagraph (B). (B) Contents Each report required under subparagraph (A) shall include, for the period covered by the report— (i) with respect to each request received by the applicable Federal agency for a waiver under this subsection, information regarding— (I) the subject invention that is the subject of the request; (II) the efforts made by the entity seeking the waiver to grant the exclusive right to use or sell the applicable subject invention to a person that would agree that any products embodying the subject invention or produced through the use of the subject invention would be manufactured substantially in the United States; and (III) in which markets the products embodying the applicable subject invention or produced through the use of the applicable subject invention will be sold; and (ii) with respect to a small business firm or nonprofit organization that is based in the United States and has elected to retain title to a subject invention pursuant to section 202, whether that firm or organization intends to manufacture that subject invention in a foreign country for a foreign market. (C) Preservation of confidentiality Each Federal agency that is required to submit a report under this paragraph shall preserve the confidentiality or trade sensitive nature of all information included in each such report. . 5. Amendments to the Directorate for Technology, Innovation, and Partnerships Subtitle G of title III of the Research and Development, Competition, and Innovation Act ( 42 U.S.C. 19101 et seq. ) is amended— (1) in section 10382— (A) in paragraph (2), by striking and after the semicolon; (B) in paragraph (3), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (4) strongly encourage that products developed through research funded by the Directorate will be manufactured in the United States. ; (2) in section 10383— (A) in paragraph (2), in the matter preceding subparagraph (A), by striking products, and inserting products that will be manufactured in the United States, ; (B) in paragraph (4)(C), by inserting producing, after capable of ; (C) in paragraph (6), by striking and after the semicolon; (D) in paragraph (7), by striking the period at the end and inserting ; and ; and (E) by adding at the end the following: (8) develop industrial capacity to produce innovations competitively in the United States for the global marketplace. ; (3) in section 10384— (A) in paragraph (1), by striking and after the semicolon; (B) in paragraph (2), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (3) maximizes economic benefits by ensuring that innovations developed from research awards are produced in the United States. ; (4) in section 10385— (A) in subsection (b)(1), by striking and commercialization and inserting commercialization, and domestic production ; and (B) in subsection (c)(2), by striking and commercialization and inserting commercialization, and domestic production ; (5) in section 10386(b)(2), by inserting with domestic manufacturing operations after private sector ; (6) in section 10389(a), by striking and commercialization and inserting commercialization, and domestic production ; (7) in section 10391(a), by striking and commercialization and inserting commercialization, and domestic production ; and (8) in section 10394(f)(5), by striking and, as appropriate, commercializing and inserting , commercializing, and producing .

August 1, 2024 Reported with an amendment