Sec. 131. Manufacturing USA Program
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Congress makes the following findings: The Manufacturing USA Program is central to maintaining the global leadership of the United States in critical technologies. When the Manufacturing USA Program was launched, it was envisioned that the program would build a national network of 45 institutes. As of the date of the enactment of this Act, 15 Manufacturing USA institutes have been established with support of the Federal Government to advance new technologies and processes to strengthen the manufacturing competitiveness of the United States.
The success of the Manufacturing USA Program is underscored by the Government of China copying the technology foci of the first 14 Manufacturing USA institutes in the creation of their own manufacturing innovation centers as part of their Made in China 2025 effort to become a world leader in advanced manufacturing and critical technology areas. The Government of China is doubling down in its effort to build a network of manufacturing innovation centers, with plans to establish 40 such centers by 2025 to leapfrog the efforts of the United States to maintain global leadership in critical technologies.
The Manufacturing USA Program has broad bipartisan support, having recently been reauthorized by section 1741 of the National Defense Authorization Act for Fiscal Year 2020 ( Public Law 116–92 ) and expanded by such section to allow for the renewal of existing Manufacturing USA institutes to establish longer term Federal commitment based on the performance of each Manufacturing USA institute. Fulfilling the original goal of establishing 45 Manufacturing USA institutes by 2025 is critical to preventing Chinese dominance in critical technologies and ensuring the security and global leadership in advanced manufacturing of the United States.
In this section: The term alliance Manufacturing USA institute means a Manufacturing USA institute described in paragraph
(3)of section 34(d) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(d) ). The term Manufacturing USA institute means an institute described in section 34(d) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(d) ). The term Manufacturing USA Network means the network established under section 34(c) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(c) ). The term Manufacturing USA Program means the program established under section 34(b)(1) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(b)(1) ). The term minority-serving institution means an eligible institution described in section 371(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1067q(a) ). The term National Program Office means the National Program Office established under section 34(h)(1) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(h)(1) ). The term traditional Manufacturing USA institute means a Manufacturing USA institute that is not an alliance Manufacturing USA institute. There is authorized to be appropriated $2,400,000,000 for the period of fiscal years 2021 through 2025 for the Director of the National Institute of Standards and Technology to carry out the Manufacturing USA Program and to expand such program to include at least 45 Manufacturing USA institutes. Of the amounts appropriated pursuant to the authorization of appropriations in paragraph (1), $1,500,000,000 shall be available for the period described in such paragraph to support the establishment of at least 3 traditional Manufacturing USA institutes each year during that period. The Director shall support the establishment of traditional Manufacturing USA institutes under subparagraph
(A)through the award of financial assistance under section 34(e) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(e) ). Of the amounts appropriated pursuant to the authorization of appropriations in paragraph (1), $375,000,000 shall be available for the period described in such paragraph to establish not fewer than 3 alliance Manufacturing USA institutes each year during that covered period as designated by the Director of the National Institute of Standards and Technology for a Federal commitment of at least 5 years. Of the amounts appropriated pursuant to the authorization of appropriations in paragraph (1), $100,000,000 shall be available for the period described in such paragraph to support such programming for commercialization, workforce training, and supply chain activities across the Manufacturing USA Network as the Director considers appropriate. Of the amounts appropriated pursuant to the authorization of appropriations in paragraph (1), $375,000,000 shall be available for the period described in such paragraph to support Manufacturing USA institutes that were in effect on the day before the date of the enactment of this Act, and $5,000,000 shall be available to each such Manufacturing USA institute each year for such period for ongoing operation of the institutes, including operational overhead, workforce training, and supply chain activities. Of the amounts appropriated pursuant to the authorization of appropriations in paragraph (1), $10,000,000 shall be available annually for the period described in such paragraph for the National Program Office to coordinate the activities of the Manufacturing USA Network and manage interagency solicitations. The Secretary of Commerce shall coordinate the activities of the Manufacturing USA Program and the activities of Hollings Manufacturing Extension Partnership with each other to the degree that doing so does not diminish the effectiveness of the ongoing activities of a Manufacturing USA institute or a Center (as the term is defined in section 25(a) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278k(a) ), including Manufacturing USA institutes contracting with a Center (as so defined) to provide services relating to the mission of the Hollings Manufacturing Extension Partnership, including outreach, technical assistance, workforce development, and technology transfer and adoption assistance to small and medium-sized manufacturers. The Secretary of Commerce shall, in coordination with the Secretary of Labor, the Secretary of Defense, the Secretary of Energy, and the Secretary of Education, establish an advisory council for the Manufacturing USA Program on the development and dissemination of techniques, policies, and investments for high-road labor practices, worker adaptation and success with technological change, and increased worker participation across the Manufacturing USA Network. The council established under subparagraph
(A)shall be composed of not fewer than 15 members appointed by the Secretary of Commerce, of whom— five shall be from labor organizations; five shall be from educational institutions; and five shall be from workforce development and nonprofit organizations, including those that focus on workforce diversity and inclusion. Each member of the council established under subparagraph
(A)shall be appointed for a term of 3 years with the ability to renew the appointment for no more than 2 terms. Any member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of that term. A member may serve after the expiration of that term until a successor has been appointed. Not later than 180 days after the date of enactment of this Act, the council established under subparagraph
(A)shall hold the first meeting. After the first meeting of the council, the council shall meet upon the call of the chairperson or of the Secretary, and at least once every 180 days thereafter. A majority of the members of the council shall constitute a quorum, but a lesser number of members may hold hearings. The members of the council established under subparagraph
(A)shall elect 1 member to serve as the chairperson and 1 member to serve as the vice chairperson of the council. The council established under paragraph (1)(A) shall provide advice and recommendations to the Secretary of Commerce on matters concerning investment in and support of the manufacturing workforce relating to the following: Worker participation, including through labor organizations, in the planning and deployment of new technologies across an industry and within workplaces. Policies to help workers adapt to technological change, including training and education priorities for the Federal Government and for employer investments in workers. Assessments of impact on workers of development of new technologies and processes by the Manufacturing USA institutes. Management practices that prioritize job quality, worker protection, worker participation and power in decision making, and investment in worker career success. Policies and procedures to prioritize diversity and inclusion in the manufacturing and technology workforce by expanding access to job, career advancement, and management opportunities for underserved and underrepresented populations. Such other matters as the Secretary considers appropriate. In this paragraph, the term appropriate committees of Congress means— the Committee on Health, Education, Labor, and Pensions, the Committee on Commerce, Science, and Transportation, the Committee on Energy and Natural Resources, the Committee on Armed Services, and the Committee on Appropriations of the Senate; and the Committee on Education and Labor, the Committee on Science, Space, and Technology, the Committee on Energy and Commerce, the Committee on Armed Services, and the Committee on Appropriations of the House of Representatives. Not later than 180 days after the date on which the council established under paragraph (1)(A) holds its initial meeting under paragraph (1)(D)(i) and annually thereafter, the council shall submit to the appropriate committees of Congress a report containing a detailed statement of the advice and recommendations of the council pursuant to paragraph (2). Members of the Council may not receive additional pay, allowances, or benefits by reason of their service on the Council. Each member shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code. In discharging its duties under this subsection, the council established under paragraph (1)(A) shall function solely in an advisory capacity, in accordance with the Federal Advisory Committee Act (5 U.S.C. App.). Section 14 of the Federal Advisory Committee Act shall not apply to the Council. The Secretary of Commerce shall coordinate with existing and new Manufacturing USA institutes to integrate minority-serving institutions as active members of the Manufacturing USA institutes, including through the development of preference criteria for proposals to create new Manufacturing USA institutes or renew existing Manufacturing USA institutes that include meaningful participation from minority-serving institutions. In this subsection, the term domestic , with respect to development or production means development or production by, or with respect to source means the source is, a person incorporated or formed in the United States— that is not under foreign ownership, control, or influence
(FOCI)as defined in section 847 of the National Defense Authorization Act for Fiscal Year 2020 ( Public Law 116–92 ); whose beneficial owners, as defined in section 847 of the National Defense Authorization Act for Fiscal Year 2020 ( Public Law 116–92 ), are United States persons; whose management are United States citizens; whose principal place of business is in the United States; and who is not— a foreign incorporated entity that is an inverted domestic corporation or any subsidiary of such entity; or any joint venture if more than 10 percent of the joint venture (by vote or value) is held by a foreign incorporated entity that is an inverted domestic corporation or any subsidiary of such entity. The Secretary of Commerce shall establish policies to promote the domestic production of technologies developed by the Manufacturing USA Network. The policies developed under paragraph
(2)shall include the following: Measures to partner domestic developers of goods, services, or technologies by Manufacturing USA Network activities with domestic manufacturers and sources of financing. Measures to develop and provide incentives to promote transfer of intellectual property and goods, services, or technologies developed by Manufacturing USA Network activities to domestic manufacturers. Measures to assist with supplier scouting and other supply chain development, including the use of the Hollings Manufacturing Extension Partnership to carry out such measures. A process to review and approve or deny any transfer of intellectual property and goods, services, or technologies developed by Manufacturing USA Network activities to outside of the United States, especially to countries of concern, including the People’s Republic of China. Measures to prioritize Federal procurement of goods, services, or technologies developed by the Manufacturing USA Network activities from domestic sources, as appropriate. Requirements that all contracts, transactions, and agreements entered into as part of participation in the Manufacturing USA Network shall include conditions where developers of technologies by activities conducted by the Manufacturing USA network who manufacture such technology outside the United States agree that they shall be required to refund to the United States an appropriate amount of funding, which shall include the amount the Federal Government has contributed and the present value of the future value lost by the United States as a result of such technology being manufactured outside the United States, under reasonable conditions and procedures determined by the Secretary in the interest of protecting taxpayers. The policies established under this paragraph shall include processes to permit waivers, on a case by case basis, for policies that promote domestic production based on cost, availability, severity of technical and mission requirements, emergency requirements, operational needs, other legal or international treaty obligations, or other factors deemed important to the success of the Manufacturing USA Program. In this paragraph, the terms beneficial owner , company , and foreign ownership, control, or influence have the meanings given such terms in section 847(a) of the National Defense Authorization Act for Fiscal Year 2020 ( Public Law 116–92 ). A company of the People’s Republic of China may not participate in the Manufacturing USA Program or the Manufacturing USA Network. Any company that engages in joint research and development, technology licensing or transfer, or investment involving technologies that result from the activities of the Manufacturing USA Program or the Manufacturing USA Network with companies in the People’s Republic of China or otherwise under the foreign ownership, control or influence of the Government of China or whose beneficial owners are citizens of the People’s Republic of China may not participate in the Manufacturing USA Program or the Manufacturing USA Network.
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