Sec. 405. Hollings Manufacturing Extension Partnership
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Section 25 of the National Institute of Standards and Technology Act ( 15 U.S.C. 278k ) is amended to read as follows: The Secretary, through the Director shall provide assistance for the creation and support of regional manufacturing extension centers for the transfer of manufacturing technology and best business practices. These centers shall be known as the Hollings Manufacturing Extension Centers (in this Act referred to as the Centers ). The program under this section shall be known as the Hollings Manufacturing Extension Partnership .
Such Centers shall be affiliated with any United States-based public or nonprofit institution or organization, or group thereof, that applies for and is awarded financial assistance under this section. The objective of the program is to enhance productivity, competitiveness, and technological performance in United States manufacturing through— the transfer of manufacturing technology and techniques to Centers and, through them, to manufacturing companies throughout the United States; the participation of individuals from industry, institutions of higher education, State governments, other Federal agencies, and, when appropriate, the Institute in cooperative technology transfer activities; efforts to make new manufacturing technology and processes usable by United States-based small and medium-sized companies; the active dissemination of scientific, engineering, technical, and management information about manufacturing to industrial firms, including small and medium-sized manufacturing companies; the development of new partnerships, networks, and services that will assist small and medium-sized manufacturing companies expand into new markets, including global markets; the utilization, when appropriate, of the expertise and capability that exists in Federal laboratories other than the Institute; and the provision to community colleges and area career and technical education schools of information about the job skills needed in small and medium-sized manufacturing businesses in the regions they serve.
The activities of the Centers shall include— the establishment of automated manufacturing systems and other advanced production technologies, based on research by the Institute and other entities, for the purpose of demonstrations and technology transfer; assistance to Federal agencies in supporting United States-based manufacturing by identifying and providing technical assistance to small and medium-sized manufacturers to help them meet Federal agency procurement and acquisition needs; the active transfer and dissemination of research findings and Center expertise to a wide range of companies and enterprises, particularly small and medium-sized manufacturers; and the facilitation of collaborations and partnerships between small and medium-sized manufacturing 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.
The Secretary may provide financial support to any Center created under subsection
(a)for an initial period of 5 years, which may be renewed for an additional 5-year period. The Secretary may provide to a Center up to 50 percent of the capital and annual operating and maintenance funds required to create and maintain such Center. The Secretary shall implement, review, and update the sections of the Code of Federal Regulations related to this section at least once every 5 years. Any public or nonprofit institution, or consortium thereof, may submit to the Secretary an application for financial support under this section, in accordance with the procedures established by the Secretary. 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 management, productivity, competitiveness, and technological performance of small and medium-sized manufacturing companies. In meeting the 50-percent requirement, it is anticipated that a Center will enter into agreements with other entities such as private 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 investment made on behalf of small and medium-sized manufacturing companies. Each applicant under subparagraph
(A)shall submit a proposal for the allocation of the legal rights associated with any invention that may result from the proposed Center’s activities. The Secretary shall subject each such application to merit review. In making a decision whether to approve such application and provide financial support under this section, the Secretary shall consider, at a minimum, the following: The merits of the application, particularly those portions of the application regarding technology transfer, training and education, and adaptation of manufacturing technologies to the needs of particular industrial sectors. The quality of service to be provided. Geographical diversity and extent of service area. The percentage of funding and amount of in-kind commitment from other sources. Each Center that receives financial assistance under this section shall be evaluated during its third year of operation by an evaluation panel appointed by the Secretary. Each such evaluation panel shall be composed of independent experts, none of whom shall be connected with the involved Center, and Federal officials. An official of the Institute shall chair the panel. Each evaluation panel shall measure the involved Center’s performance against the objectives specified in this section. If the evaluation is positive, the Secretary may provide continued funding through the fifth year. The Secretary may not provide funding for the remaining years of a Center’s operation unless the evaluation is positive. A Center that has not received a positive evaluation by the evaluation panel shall be notified by the panel of the deficiencies in its performance and shall be placed on a corrective action plan and provided the opportunity to address deficiencies unless immediate action is necessary to protect the public interest. The program shall re-evaluate the Center within one year and if the Center has not addressed the deficiencies identified by the panel, or shown a significant improvement in its performance, the Director shall conduct a new competition or may close the Center. After the fifth year, a Center may receive additional financial support under this section if it has received a positive evaluation through an independent review, under procedures established by the Institute. If a Center has received financial support for 10 consecutive years, the Director shall conduct a new competition. An existing Center may submit an application as part of the new competition. Not later than 180 days after the date of enactment of the America Competes Reauthorization Act of 2014 , the Director shall submit a plan to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate detailing how the program will implement the new competitions required under subparagraph (H). The Director shall consult with the MEP Advisory Board established under subsection
(f)in the development and implementation of the plan. Each Center that receives financial assistance under this section shall establish an oversight board that is broadly representative of regional stakeholders with a majority of board members drawn from local small and medium-sized manufacturing firms. Each board under subparagraph
(A)shall adopt and submit to the Director bylaws to govern the operation of the board, including a conflict of interest policy to ensure relevant relationships are disclosed and proper recusal procedures are in place. Board members may not serve simultaneously on more than one Center’s oversight board or serve as a contractor providing services to a Center. The Secretary shall ensure that the following are not publically disclosed: Confidential information on the business operations of— a participant under the program; or a client of a Center. Trade secrets possessed by any client of a Center. The provisions of chapter 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 Centers under this section except for contracts for such specific technology extension or transfer services as may be specified by statute or by the Director. The Director shall establish procedures regarding Center financial reporting and auditing to ensure that awards are used for the purposes specified in this section and are in accordance with sound accounting practices. In addition to such sums as may be appropriated to the Secretary and Director 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 for the purpose of strengthening United States manufacturing. The Director shall determine whether funds accepted from other Federal departments or agencies shall be counted in the calculation of the Federal share of capital and annual operating and maintenance costs under subsection (c). Funds accepted from the private sector under section 2(c)(7), if allocated to a Center, may not be considered in the calculation of the Federal share under subsection
(c)of this section. There is established within the Institute a Manufacturing Extension Partnership Advisory Board (in this subsection referred to as the MEP Advisory Board ). The MEP Advisory Board shall consist of not fewer than 10 members broadly representative of stakeholders, to be appointed by the Director. At least 2 members shall be employed by or on an advisory board for the Centers, at least 1 member shall represent a community college, and at least 5 other members shall be from United States small businesses in the manufacturing sector. No member shall be an employee of the Federal Government. Except as provided in subparagraph
(C)or (D), the term of office of each member of the MEP Advisory Board shall be 3 years. Any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term. Any person who has completed two consecutive full terms of service on the MEP Advisory Board shall thereafter be ineligible for appointment during the one-year period following the expiration of the second such term. The MEP Advisory Board shall meet not less than 2 times annually and shall provide to the Director— advice on Hollings Manufacturing Extension Partnership programs, plans, and policies; assessments of the soundness of Hollings Manufacturing Extension Partnership plans and strategies; and assessments of current performance against Hollings Manufacturing Extension Partnership program plans. In discharging its duties under this subsection, the MEP Advisory Board shall function solely in an advisory capacity, in accordance with the Federal Advisory Committee Act. Section 14 of the Federal Advisory Committee Act shall not apply to the MEP Advisory Board. 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 address the status of the program established pursuant 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. The Director shall establish, within the Hollings Manufacturing Extension Partnership, a program of competitive awards among participants described in paragraph
(2)for the purposes described in paragraph (3). Participants receiving awards under this subsection shall be the Centers, or a consortium of such Centers. The purpose of the program under this subsection is to add capabilities to the Hollings Manufacturing Extension Partnership, including 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, the MEP Advisory Board, and small and medium-sized manufacturers. One or more themes for the competition may be identified, which may vary from year to year, depending on the needs of manufacturers and the success of previous competitions. These themes may include— supply chain integration and quality management; the creation of partnerships to encourage the development of a workforce with the skills necessary to meet the needs of a region, including the creation of apprenticeship opportunities and the adoption of universally recognized credential programs, as appropriate; energy efficiency, including efficient building technologies and environmentally friendly materials, products, and processes; enhancing the competitiveness of small and medium-sized manufacturers in the global marketplace; the transfer of technology based on the technological needs of manufacturers and available technologies from institutions of higher education, laboratories, and other technology producing entities; and areas that extend beyond traditional areas of manufacturing extension activities, including projects related to construction industry modernization. Centers may be reimbursed for costs incurred under the program under this subsection. Applications for awards under this subsection shall be submitted in such manner, at such time, and containing such information as the Director shall require, in consultation with the MEP Advisory Board. Awards under this subsection 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— utilize innovative or collaborative approaches to solving the problem described in the competition; improve the competitiveness of industries in the region in which the Center or Centers are located; and contribute to the long-term economic stability of that region, including the creation of jobs or training employees. Recipients of awards under this subsection shall not be required to provide a matching contribution. Awards under this subsection shall last no longer than 5 years. The Director, in coordination with the Advanced Manufacturing Office of the Department of Energy, shall establish, within the Hollings Manufacturing Extension Partnership, an innovative services initiative to assist small and medium-sized manufacturers in— reducing their energy usage, greenhouse gas emissions, and environmental waste to improve profitability; accelerating the domestic commercialization of new product technologies, including components for renewable energy and energy efficiency systems; and identifying and diversifying to new markets, including support for transitioning to the production of components for renewable energy and energy efficiency systems. The Director may not undertake any activity to accelerate the domestic commercialization of a new product technology under this subsection unless an analysis of market demand for the new product technology has been conducted. The Director shall— evaluate obstacles that are unique to small and medium-sized manufacturers that prevent such manufacturers from effectively competing in the global market; implement a comprehensive export assistance initiative through the Centers to help small and medium-sized manufacturers address such obstacles; and to the maximum extent practicable, ensure that the activities carried out under this subsection are coordinated with, and do not duplicate the efforts of, other export assistance programs within the Federal Government. The initiative shall include— export assistance counseling; the development of partnerships that will provide small and medium-sized manufacturers with greater access to and knowledge of global markets; and improved communication between the Centers to assist such manufacturers in implementing appropriate, targeted solutions to such obstacles. In this section: The term area career and technical education school has the meaning given such term in section 3 of the Carl D. Perkins Career and Technical Education Improvement Act of 2006 ( 20 U.S.C. 2302 ). The term community college means an institution of higher education (as defined under section 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 associate’s degree. .
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