[DOCID: f:hr574p1.111]
From the House Reports Online via GPO Access
[wais.access.gpo.gov]
111th Congress Rept. 111-574
HOUSE OF REPRESENTATIVES
2d Session Part 1
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NATIONAL MANUFACTURING STRATEGY ACT OF 2010
_______
July 28, 2010.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Waxman, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 4692]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 4692) to require the President to prepare a
quadrennial National Manufacturing Strategy, and for other
purposes, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 6
Legislative History.............................................. 7
Committee Consideration.......................................... 7
Committee Votes.................................................. 7
Committee Oversight Findings and Recommendations................. 7
New Budget Authority, Entitlement Authority, and Tax Expenditures 8
Statement of General Performance Goals and Objectives............ 8
Constitutional Authority Statement............................... 8
Earmarks and Tax and Tariff Benefits............................. 8
Federal Advisory Committee Statement............................. 8
Applicability of Law to Legislative Branch....................... 8
Federal Mandates Statement....................................... 8
Committee Cost Estimate.......................................... 8
Congressional Budget Office Cost Estimate........................ 9
Section-by-Section Analysis of the Legislation................... 9
Explanation of Amendment......................................... 13
Changes in Existing Law Made by the Bill, as Reported............ 13
AMENDMENT
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Manufacturing Strategy Act of
2010''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the United States Government should promote policies
related to the Nation's manufacturing sector that are intended
to promote growth, sustainability, and competitiveness; create
well-paying, decent jobs; enable innovation and investment; and
support national security; and
(2) the President and Congress should act promptly to pursue
policies consistent with a National Manufacturing Strategy.
SEC. 3. NATIONAL MANUFACTURING STRATEGY.
(a) Strategy Required.--Not later than the first day of July of the
second year of each Presidential term, the President shall submit to
Congress, and publish on a public website, a National Manufacturing
Strategy.
(b) Deadline for First National Manufacturing Strategy.--
Notwithstanding subsection (a), the President shall issue the first
National Manufacturing Strategy not later than the date that is one
year after the date of the enactment of this Act.
SEC. 4. PRESIDENT'S MANUFACTURING STRATEGY BOARD.
(a) In General.--The President shall establish, within the Department
of Commerce, the President's Manufacturing Strategy Board.
(b) Public Sector Members.--The President's Manufacturing Strategy
Board shall include the following individuals:
(1) The Secretary or head (or the designee of the Secretary
or head) of each of the following organizations:
(A) The Department of the Treasury.
(B) The Department of Defense.
(C) The Department of Commerce.
(D) The Department of Labor.
(E) The Department of Energy.
(F) The Office of the United States Trade
Representative.
(G) The Office of Management and Budget.
(H) The Office of Science and Technology Policy.
(I) The Small Business Administration.
(J) Other Federal agencies the President determines
appropriate.
(2) The Governors of two States, from different political
parties, appointed by the President in consultation with the
National Governors Association.
(c) Private Sector Members.--
(1) In general.--The President's Manufacturing Strategy Board
shall further include 9 individuals from the private sector,
appointed by the President after consultation with industry and
labor organizations, including individuals with experience in
the areas of--
(A) managing manufacturing companies;
(B) managing supply chain providers;
(C) managing labor organizations;
(D) workforce development;
(E) conducting manufacturing-related research and
development; and
(F) the defense industrial base.
(2) Balance in representation.--In making appointments of
private sector members to the President's Manufacturing
Strategy Board under paragraph (1), the President shall seek to
ensure that the individuals appointed represent a balance among
and within regions, sizes of firms, and industries of the
manufacturing sector.
(3) Terms.--
(A) In general.--Each member appointed under this
subsection shall be appointed for a term of 6 years,
except as provided in subparagraphs (B) and (C).
(B) Terms of initial appointees.--As designated by
the President at the time of appointment, of the
members first appointed--
(i) 3 shall be appointed for a term of 2
years;
(ii) 3 shall be appointed for a term of 4
years; and
(iii) 3 shall be appointed for a term of 6
years.
(C) Vacancies.--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 member's term
until a new member has been appointed.
(d) Chair and Vice Chair.--
(1) Chair.--The Secretary of Commerce (or the designee of the
Secretary) shall serve as the Chair of the President's
Manufacturing Strategy Board.
(2) Vice chair.--The President shall appoint the Vice Chair
of the President's Manufacturing Strategy Board from among the
private sector members appointed by the President under
subsection (c).
(e) Subgroups.--The President's Manufacturing Strategy Board may
convene subgroups to address particular industries, policy topics, or
other matters. Such subgroups may include members representing any of
the following:
(1) Such other Federal agencies as the Chair determines
appropriate.
(2) State, local, tribal, and Territorial governments.
(3) The private sector, including labor, industry, academia,
trade associations, and other appropriate groups.
(f) Meetings.--
(1) Timing of meetings.--The President's Manufacturing
Strategy Board shall meet at the call of the Chair.
(2) Frequency of meetings.--The President's Manufacturing
Strategy Board shall meet not less than 2 times each year, and
not less than 4 times in a year preceding the issuance of a
National Manufacturing Strategy required under section 3(a).
(3) Public meetings required.--The President's Manufacturing
Strategy Board shall convene public meetings to solicit views
on the Nation's manufacturing sector and recommendations for
the National Manufacturing Strategy.
(4) Locations of public meetings.--The locations of public
meetings convened under paragraph (3) shall ensure the
inclusion of multiple regions and industries of the
manufacturing sector.
(g) Application of Federal Advisory Committee Act.--The Federal
Advisory Committee Act (5 U.S.C. App.), other than section 14 of such
Act, shall apply to the President's Manufacturing Strategy Board,
including any subgroups established pursuant subsection (e).
SEC. 5. DUTIES OF THE PRESIDENT'S MANUFACTURING STRATEGY BOARD.
(a) In General.--The President's Manufacturing Strategy Board shall--
(1) advise the President and Congress on issues affecting the
Nation's manufacturing sector;
(2) conduct a comprehensive analysis in accordance with
subsection (b);
(3) develop a National Manufacturing Strategy in accordance
with subsection (c);
(4) submit to the President and Congress an annual report
under subsection (d); and
(5) carry out other activities determined appropriate by the
President.
(b) Comprehensive Analysis.--In developing each National
Manufacturing Strategy under subsection (c), the President's
Manufacturing Strategy Board shall conduct a comprehensive analysis of
the Nation's manufacturing sector that addresses--
(1) the value and role, both historic and current, of
manufacturing in the Nation's economy, security, and global
leadership;
(2) the current domestic and international environment for
the Nation's manufacturing sector, and any relevant subset
thereof;
(3) Federal, State, local, and Territorial policies,
programs, and conditions that affect manufacturing;
(4) a comparison of the manufacturing policies and strategies
of the United States relative to other nations' policies and
strategies;
(5) the identification of emerging or evolving markets,
technologies, and products for which the Nation's manufacturers
could compete;
(6) the short- and long-term forecasts for the Nation's
manufacturing sector, and forecasts of expected national and
international trends and factors likely to affect such sector
in the future; and
(7) any other matters affecting the competitiveness, growth,
stability, and sustainability of the Nation's manufacturing
sector, including--
(A) levels of domestic production;
(B) productivity;
(C) the trade balance;
(D) financing and investment;
(E) research and development;
(F) job creation and employment disparities;
(G) workforce skills and development; and
(H) adequacy of the industrial base for maintaining
national security.
(c) National Manufacturing Strategy.--
(1) Development.--The President's Manufacturing Strategy
Board shall develop a National Manufacturing Strategy, based
on--
(A) the results of the comprehensive analysis
conducted under subsection (b);
(B) the studies carried out by the National Academy
of Sciences pursuant to section 7; and
(C) any other information, studies, or perspectives
that the President's Manufacturing Strategy Board
determines to be appropriate.
(2) Goals and recommendations.--
(A) Goals.--The President's Manufacturing Strategy
Board shall include in each National Manufacturing
Strategy short- and long-term goals for the Nation's
manufacturing sector, taking into account the matters
addressed in the comprehensive analysis conducted under
subsection (b).
(B) Recommendations.--The President's Manufacturing
Strategy Board shall include in each National
Manufacturing Strategy recommendations for achieving
the goals provided under subparagraph (A). Such
recommendations may propose--
(i) actions to be taken by the President,
Congress, State, local, and Territorial
governments, the private sector, universities,
industry associations, and other stakeholders;
and
(ii) ways to improve Government policies,
coordination among entities developing such
policies, and Government interaction with the
manufacturing sector.
(3) Report.--
(A) Draft.--Not later than 90 days before the date on
which the President is required to submit to Congress a
report containing a National Manufacturing Strategy
under section 3, the President's Manufacturing Strategy
Board shall publish in the Federal Register and on a
public website a draft report containing a National
Manufacturing Strategy.
(B) Public comment; review and revision.--A draft
report published under subparagraph (A) shall remain
available for public comment for a period of 30 days
from the date of publication. The President's
Manufacturing Strategy Board shall review any comments
received regarding such draft report and may revise the
draft report based upon those comments.
(C) Publication.--Not later than 30 days before the
date on which the President is required to submit to
Congress a report containing a National Manufacturing
Strategy under section 3, the President's Manufacturing
Strategy Board shall submit to the President for review
and revision a final report containing a National
Manufacturing Strategy, and shall publish such final
report on a public website.
(D) Estimates.--The final report submitted under
subparagraph (C) shall include--
(i) when feasible, an estimate of the short-
and long-term Federal Government outlays and
revenue changes necessary to implement the
National Manufacturing Strategy and an estimate
of savings that may be derived from
implementation of the National Manufacturing
Strategy;
(ii) a detailed explanation of the methods
and analysis used to determine the estimates
included under clause (i); and
(iii) detailed recommendations regarding how
to pay for the cost of implementation estimated
under clause (i), when feasible.
(d) Annual Report.--Not later than the date that is one year after
the date on which the first National Manufacturing Strategy is
published under section 3, and annually thereafter, the President's
Manufacturing Strategy Board shall submit to the President and Congress
a report that includes--
(1) views on the current state of manufacturing in the United
States;
(2) an assessment of the implementation of previously issued
National Manufacturing Strategies;
(3) recommendations for furthering the implementation of
previously issued National Manufacturing Strategies; and
(4) any suggested revisions to the estimate required under
section 5(c)(3)(D)(i) to implement the recommendations included
under paragraph (3).
(e) Consultation.--In order to gain perspectives and avoid
duplication of efforts, the President's Manufacturing Strategy Board
shall consult on manufacturing issues with the Defense Science Board,
the President's Council of Advisors on Science and Technology, the
Manufacturing Council established by the Department of Commerce, and
the Labor Advisory Committee for Trade Negotiations and Trade Policy,
and may consult with other relevant governmental entities or the
private sector.
SEC. 6. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF NATIONAL
MANUFACTURING STRATEGY.
Not later than the first day of April in calendar years 2013, 2017,
and 2021, the Comptroller General shall submit to Congress a report
regarding the National Manufacturing Strategy published under section
3. The report shall include--
(1) an assessment of whether the recommendations from such
National Manufacturing Strategy, and any preceding National
Manufacturing Strategies, were implemented;
(2) an analysis of the impact of such recommendations, to the
extent data are available;
(3) a review of the process involved in developing such
National Manufacturing Strategy and any preceding National
Manufacturing Strategies; and
(4) recommendations for improvements in developing the next
National Manufacturing Strategy.
SEC. 7. STUDIES.
(a) Quadrennial Study.--
(1) In general.--In developing each National Manufacturing
Strategy, the President, acting through the Secretary of
Commerce, shall enter into an agreement with the National
Academy of Sciences to conduct a study in accordance with this
subsection.
(2) Elements.--The study shall examine the following:
(A) The current state of manufacturing in the United
States.
(B) Federal programs and activities related to
manufacturing systems.
(C) The ways in which Federal policies affect
manufacturing, and likely future trends in
manufacturing if such policies remain unchanged.
(D) Various possible approaches for evaluating the
implementation of the National Manufacturing Strategy.
(E) An assessment of the trends and short- and long-
term forecasts of manufacturing.
(F) A review of the trends and short- and long-term
forecasts of manufacturing relied upon in previous
National Manufacturing Strategies as compared with
actual events and trends.
(3) Report.--The agreement entered into under paragraph (1)
shall provide that not later than the first day of April of the
first year of each Presidential term, the National Academy of
Sciences shall submit to Congress and the President a report
containing the findings of the study.
(4) Deadline for first report.--Notwithstanding paragraph
(3), the first agreement entered into under this subsection
shall provide that the National Academy of Sciences shall
submit to Congress and the President a report containing the
findings of the study not later than 2 years after the date
such agreement is entered into.
(5) Deadline for subsequent agreements.--After the first
agreement entered into under this subsection, all subsequent
agreements under this subsection shall be entered into not
later than 18 months before the deadline for submission of the
corresponding report under paragraph (3).
(b) Discretionary Studies.--The President, acting through the
Secretary of Commerce, may enter into further agreements with the
National Academy of Sciences as necessary to develop studies to provide
information for future National Manufacturing Strategies.
SEC. 8. REQUIREMENT TO CONSIDER NATIONAL MANUFACTURING STRATEGY IN
BUDGET.
In preparing the budget for a fiscal year under section 1105(a) of
title 31, United States Code, the President shall include information
regarding the consistency of the budget with the goals and
recommendations included in National Manufacturing Strategy covering
that fiscal year.
PURPOSE AND SUMMARY
H.R. 4692, the ``National Manufacturing Strategy Act of
2010'', introduced by Rep. Daniel Lipinski (D-IL), requires the
development of a quadrennial National Manufacturing Strategy
and accompanying analysis and studies. This Strategy will
provide a means of setting national policy direction to support
domestic economic growth in manufacturing.
BACKGROUND AND NEED FOR LEGISLATION
Manufacturing is an important part of the United States
economy. At the end of 2009, the United States manufacturing
sector employed more than 11.5 million people.\1\ As a
percentage of the nation's gross domestic product (GDP),
manufacturing accounted for 11% in 2009.\2\ The manufacturing
sector consistently produces a majority of exports from the
United States.\3\
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\1\Bureau of Labor Statistics, Employment, Hours, and Earnings from
the Current Employment Statistics Survey (National) (online at
www.bls.gov/iag/tgs/iag31-33.htm under ``back data'' for ``employment,
all employees'') (accessed July 9, 2010).
\2\Bureau of Economic Analysis, Gross-Domestic-Product-by-Industry
Accounts, Value Added by Industry as a Percentage of Gross Domestic
Product (online at www.bea.gov/industry/gpotables/gpo_action.cfm)
(accessed July 9, 2010).
\3\See, e.g., U.S. Census Bureau, U.S. International Trade in Goods
and Services (FT 900) (Apr. 2010) (online at www.census.gov/ft900).
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United States manufacturing, however, is not what it once
was. In December 1999, manufacturing employed 17.3 million
people compared to 11.5 million in December 2009\4\--a loss of
5.8 million employees in the sector over the past 10 years. In
1999, manufacturing constituted 14.6% of the nation's GDP, 3.6%
more than what it constituted in 2009.\5\ Furthermore, although
manufactured goods exports have generally grown in recent
years, United States exporters have lost market share to even
more rapidly growing exporters in China, Southeast Asia, and
India.\6\
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\4\Bureau of Labor Statistics, Employment, Hours, and Earnings from
the Current Employment Statistics Survey (National) (online at
www.bls.gov/iag/tgs/iag31-33.htm under ``back data'' for ``employment,
all employees'') (accessed July 9, 2010).
\5\Bureau of Economic Analysis, Gross-Domestic-Product-by-Industry
Accounts, Value Added by Industry as a Percentage of Gross Domestic
Product (online at www.bea.gov/industry/gpotables/gpo_action.cfm)
(accessed July 9, 2010).
\6\Manufacturing Institute, The Facts About Modern Manufacturing
(2009).
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The state of our manufacturing sector has an impact not
only on the nation's economy, but also on its security.
According to the National Defense Industrial Association,
``with each lost manufacturing job, our defense manufacturing
capability declines. Today, the U.S. depends on other nations,
who are not necessarily our friends, for strategic materials
and technology.''\7\
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\7\National Defense Industrial Association, Manufacturing Division,
Maintaining a Viable Defense Industrial Base (Aug. 1, 2008).
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Because manufacturing cuts across a range of governmental
interests and agencies, a strategic consideration among and
across agencies and an effort to unify their efforts would
improve federal government policy and support.\8\ Although
there are several federal working groups and a variety of
programs to support United States manufacturing, the country
does not have a regularly-updated, national strategy to
coordinate policy and public investment in this sector.
---------------------------------------------------------------------------
\8\See, e.g., House Committee on Energy and Commerce, Subcommittee
on Commerce, Trade, and Consumer Protection, Testimony of Scott N.
Paul, Executive Director, Alliance for American Manufacturing (stating
that ``it makes perfect sense to harness the best minds, as well as to
coordinate among the appropriate agencies, to focus on a government-
wide strategy to advance manufacturing in both employment and output
terms''), Testimony of Mark A. Gordon, Executive Committee Member of
the Manufacturing Division, National Defense Industrial Association
(stating, ``There are many groups from government, industry, and
academia which are chartered to further the domestic manufacturing
agenda, but they are not strategic, senior, or sufficient enough to
deliver the goal of H.R. 4692''), Hearing on H.R. 4692, the National
Manufacturing Strategy Act of 2010, 111th Cong. (July 14, 2010).
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There have been some important steps towards developing a
national strategy, such as the President's ``Framework for
Revitalizing American Manufacturing,''\9\ issued in December
2009, and the Commerce Department's 2004 report on
``Manufacturing in America.''\10\ However, more needs to be
done. Other nations, including the United Kingdom, Japan,
China, and Germany, develop and maintain manufacturing
strategies as a means of setting national policy direction to
support domestic economic growth in manufacturing.\11\
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\9\Executive Office of the President, A Framework for Revitalizing
American Manufacturing (Dec. 2009).
\10\Department of Commerce, Manufacturing in America (Jan. 2004).
\11\See, e.g., United Kingdom Department for Business, Enterprise &
Regulatory Reform, Department for Innovation, Universities & Skills,
Manufacturing: New Challenges, New Opportunities (Sept. 2008) (online
at www.berr.gov.uk/files/file47660.pdf) (accessed on July 9, 2010);
International Trade Administration, Jane Corwin and Rebecca Puckett,
Japan's Manufacturing Competitiveness Strategy: Challenges for Japan,
Opportunities for the United States (April 2009) (online at
www.ita.doc.gov/td/tradepolicy/Japan%20Mfg%20Study.pdf); House
Committee on Energy and Commerce, Subcommittee on Commerce, Trade, and
Consumer Protection, Testimony of Owen E. Herrnstadt, Director of Trade
and Globalization, International Association of Machinists and
Aerospace Workers (referencing manufacturing policies in China and
Germany), Hearing on H.R. 4692, the National Manufacturing Strategy Act
of 2010, 111th Cong. (July 14, 2010).
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LEGISLATIVE HISTORY
H.R. 4692, the ``National Manufacturing Strategy Act of
2010,'' was introduced on February 25, 2010, by Rep. Daniel
Lipinski (D-IL), and currently has nearly 60 cosponsors. The
bill was referred to the Committee on Energy and Commerce, and
in addition to the Committee on the Budget. The Subcommittee on
Commerce, Trade, and Consumer Protection held a legislative
hearing on H.R. 4692 on July 14, 2010. The Subcommittee was
discharged from further consideration when the bill was called
up at full Committee markup.
COMMITTEE CONSIDERATION
On July 21, 2010, the Committee on Energy and Commerce met
in open markup session to consider H.R. 4692 as introduced. The
Committee adopted a bipartisan amendment in the nature of a
substitute offered by Mr. Waxman by a voice vote. The amendment
made a number of changes to consolidate and streamline
provisions in H.R. 4692, as well as to improve its flow and
structure. The Committee subsequently ordered H.R. 4692
favorably reported to the House, amended, by a voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list each record vote
on the motion to report legislation and amendments thereto. A
motion by Mr. Waxman ordering H.R. 4692 reported to the House,
amended, was approved by a voice vote. There were no record
votes taken during consideration of this bill.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives, the Committee finds that H.R. 4692
will result in no new budget authority, entitlement authority,
or tax expenditures or revenues.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
constitutional authority for H.R. 4692 is provided in Article
I, section 8, clauses 3 and 18 of the Constitution of the
United States.
EARMARKS AND TAX AND TARIFF BENEFITS
H.R. 4692 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of the
House of Representatives.
FEDERAL ADVISORY COMMITTEE STATEMENT
Section 4 of the bill establishes an advisory committee
within the definition of 5 U.S.C. App., section 5(b). The
Committee finds this advisory committee is needed to ensure the
development of a national manufacturing strategy based on a
deep and broad analysis of the manufacturing sector, and to
otherwise advise the President and Congress on national
manufacturing issues.
APPLICABILITY OF LAW TO THE LEGISLATIVE BRANCH
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to terms and conditions of
employment or access to public services and accommodations.
This bill does not relate to employment or access to public
services and accommodations.
FEDERAL MANDATES STATEMENT
Section 423 of the Congressional Budget and Impoundment
Control Act of 1974 (as amended by section 101(a)(2) of the
Unfunded Mandates Reform Act, P.L. 104-4) requires a statement
on whether the provisions of the bill include unfunded
mandates. In compliance with this requirement the Committee
will rely on the analysis prepared by the Director of the
Congressional Budget Office, which at the time of the filing of
this report had not been completed.
COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(2) of rule XIII of the Rules of the
House of Representatives, the Committee will adopt as its own
the cost estimate of H.R. 4692 being prepared by the Director
of the Congressional Budget Office pursuant to section 402 of
the Congressional Budget Act of 1974. At the time of the filing
of this report, this estimate had not yet been completed.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
With respect to the requirements of clause (3)(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has not yet received a cost estimate for H.R. 4692
from the Director of Congressional Budget Office.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 designates the short title of the Act as the
``National Manufacturing Strategy Act of 2010''.
Section 2. Sense of Congress
Section 2 indicates the sense of Congress that the
government should promote policies related to the nation's
manufacturing sector that are intended to promote growth,
sustainability, and competitiveness; create well-paying, decent
jobs; enable innovation and investment; and support national
security. The sense of Congress also indicates that the
President and Congress should act promptly to pursue policies
consistent with a National Manufacturing Strategy. Although
this Congress cannot require action by future Congresses, it is
the Committee's intent that, given the importance of the
manufacturing sector to our economy, any recommendations would
be promptly acted upon.
Section 3. National Manufacturing Strategy
Section 3 requires the President to submit to Congress, and
publish on a public website, a National Manufacturing Strategy.
The first such strategy will be due within one year of
enactment. Subsequent strategies are due on July 1 of the
second year of each presidential term.
Section 4. President's Manufacturing Strategy Board
Section 4 establishes a President's Manufacturing Strategy
Board, made up of federal officials, two governors from
different political parties, and nine individuals from the
private sector. The federal officials must include the
Secretary or head (or such individual's designee) of: the
Departments of Treasury, Defense, Commerce, Labor, and Energy,
the Office of the United States Trade Representative, the
Office of Management and Budget, the Office of Science and
Technology, the Small Business Administration, and other
federal agencies the President determines appropriate.
The private sector members will be appointed by the
President after consultation with industry and labor
organizations. They must include a variety of individuals with
experience in the areas of managing manufacturing companies,
managing supply chain providers, managing labor organizations,
workforce development, conducting manufacturing-related
research and development, and the defense industrial base.
These requirements will ensure representatives from both labor
and industry on the Board. In making appointments of these
members, the President must seek to ensure that the individuals
appointed represent a balance among and within regions, sizes
of firms, and industries of the manufacturing sector. The
private sector members will be appointed for six-year terms.
With respect to the members first appointed, and as designated
by the President at the time of appointment, three must be
appointed for a term of two years, three must be appointed for
a term of four years, and three must be appointed for a term of
six years. Any member appointed to fill a vacancy occurring
before the expiration of the term for which the member's
predecessor was appointed must be appointed only for the
remainder of that term. The section also provides that a member
may serve after the expiration of that member's term until a
new member has been appointed. The Chair of the Board will be
the Secretary of Commerce (or the Secretary's designee), and
the Vice Chair will be appointed by the President from among
the private sector members.
The Board may convene subgroups to address particular
industries, policy topics, or other matters. Under this
section, the subgroups may include members representing such
other federal agencies as the Chair determines appropriate;
state, local, tribal, and territorial governments; and the
private sector, including labor, industry, academia, trade
associations, and other appropriate groups.
This section requires the Board to meet at the call of the
Chair, at least two times each year, and at least four times in
the year preceding the issuance of a National Manufacturing
Strategy. The Board must convene public meetings to solicit
views on the nation's manufacturing sector and recommendations
for the strategy. The locations of such public meetings must
ensure the inclusion of multiple regions and industries of the
manufacturing sector.
Section 4 mandates that the Federal Advisory Committee Act,
aside from section 14 of that Act, applies to the Board and any
subgroups established by it.
The membership of the Board, as well as its ability to
bring in additional interested parties on subgroups and the
requirement that it hold public meetings, is intended to ensure
that there is ample communication between all parties
interested in the nation's manufacturing sector. This
communication, along with the benefits of a strategy based on a
deep and broad analysis of the manufacturing sector, will
ensure that the strategy's recommendations keep our country's
manufacturing sector robust and competitive.
Section 5. Duties of the President's Manufacturing Strategy Board
Section 5 requires the President's Manufacturing Strategy
Board to advise the President and Congress on issues affecting
the nation's manufacturing sector, conduct a comprehensive
analysis of such sector, develop a National Manufacturing
Strategy, submit an annual report to the President and
Congress, and carry out other activities determined appropriate
by the President.
This section also provides a non-exclusive list of matters
that must be considered during the Board's comprehensive
analysis of the nation's manufacturing sector. Such an analysis
must address: the value and role, both historic and current, of
manufacturing in the nation's economy, security, and global
leadership; the current domestic and international environment
for the nation's manufacturing sector, and any relevant subset
thereof; federal, state, local, and territorial policies,
programs, and conditions that affect manufacturing; a
comparison of the manufacturing policies and strategies of the
United States relative to other nations' policies and
strategies; the identification of emerging or evolving markets,
technologies, and products for which the nation's manufacturers
could compete; and the short- and long-term forecasts for the
nation's manufacturing sector, and forecasts of expected
national and international trends and factors likely to affect
it in the future. The analysis must also address any other
matters affecting the competitiveness, growth, stability, and
sustainability of the nation's manufacturing sector, including
levels of domestic production, productivity, the trade balance,
financing and investment, research and development, job
creation and employment disparities, workforce skills and
development, and adequacy of the industrial base for
maintaining national security.
The Board must base its National Manufacturing Strategy on
the results of that comprehensive analysis, studies by the
National Academy of Sciences, and any other information,
studies or perspectives that the Board determines appropriate.
The strategy must contain short- and long-term goals for the
nation's manufacturing sector, taking into account the matters
addressed in the comprehensive analysis. It must also include
in its strategy recommendations for achieving such goals. The
recommendations may propose actions to be taken by the
President, Congress, state, local, and territorial governments,
the private sector, universities, industry associations, and
other stakeholders. The recommendations may also propose ways
to improve government policies, coordination among entities
developing such policies, and government interaction with the
private sector.
No more than 90 days before the President must submit a
strategy to Congress, section 5 requires the Board to publish
in the Federal Register and on a public website a draft report
containing a strategy. The draft report must be available for
public comment for 30 days, and the Board must review any
comments received and may revise its draft report based upon
those comments. No more than 30 days before the President must
submit a strategy to Congress, the Board must submit to the
President for review and revision a final report containing a
National Manufacturing Strategy. That final report must also be
published on a public website. It must contain, when feasible,
an estimate of the short- and long-term federal government
outlays and revenue changes necessary to implement the strategy
and an estimate of savings that may be derived from
implementation of the strategy. The final report must also
contain a detailed explanation of the methods and analysis used
to determine such estimates. It must also contain
recommendations regarding how to pay for the cost of
implementation derived from the estimates of outlays, revenue
changes, and savings described above.
Section 5 also requires an annual report to the President
and Congress by the Board regarding the state of manufacturing
and the implementation of National Manufacturing Strategies.
The report must include views on the current state of
manufacturing in the United States, an assessment of the
implementation of previously issued National Manufacturing
Strategies, recommendations for furthering the implementation
of previously issued strategies, and any suggested revisions to
estimates. This annual report and the quadrennial strategy will
ensure that Congress, the President, other government
stakeholders, and the public maintain a focus on manufacturing
issues and take action as necessary to adjust for changes in
the relevant circumstances.
In order to gain perspectives and avoid duplication of
efforts, the Board is required to consult on manufacturing
issues with certain advisory groups already deeply involved in
manufacturing issues, and is allowed to consult with other
relevant governmental entities or the private sector. The
advisory groups with which the Board must consult are: the
Defense Science Board, the President's Council of Advisors on
Science and Technology, the Manufacturing Council, and the
Labor Advisory Committee for Trade Negotiations and Trade
Policy.
Section 6. Government Accountability Office review of National
Manufacturing Strategy
This section requires the Comptroller General to submit
three reports to Congress regarding the National Manufacturing
Strategy. The reports are due every four years no later than
the first day of April, beginning in 2013. The reports must
include an assessment of whether recommendations from each
National Manufacturing Strategy and any preceding strategies
were implemented, an analysis of the impact of such
recommendations (to the extent data are available), a review of
the process involved in developing each strategy and any
preceding strategies, and recommendations for improvements in
development of the next strategy.
Section 7. Studies
Section 7 states that the President, acting through the
Secretary of Commerce, must regularly enter into an agreement
with the National Academy of Sciences (NAS) to conduct a study,
in order to inform the development of the National
Manufacturing Strategy. The study must examine the current
state of manufacturing in the United States; federal programs
and activities related to manufacturing systems; the ways in
which federal policies affect manufacturing, and likely future
trends in manufacturing if such policies do not change; various
possible approaches for evaluating the implementation of the
strategy; an assessment of the trends and short- and long-term
forecasts of manufacturing; and a review of the trends and
short- and long-term forecasts of manufacturing relied upon in
previous National Manufacturing Strategies as compared with
actual events and trends. The agreement for the study must
provide that the NAS submit a report containing the findings of
the study to Congress and the President no later than the first
day of April of the first year of each presidential term, and
must be entered into no later than 18 months before the
deadline for submission. However, the first agreement entered
into following enactment must provide that the NAS submit its
report to Congress and the President no later than two years
after the date the agreement is entered into. Additional
studies may also be requested of the NAS as necessary to
develop studies to provide information for future National
Manufacturing Strategies. The Committee expects that the
President would promptly transmit to the Board any reports
produced pursuant to this section.
Section 8. Requirement to consider National Manufacturing Strategy in
budget
This section requires that the President, in preparing the
budget for a fiscal year, include information regarding the
consistency of the budget with the goals and recommendations
included in the National Manufacturing Strategy covering that
fiscal year.
EXPLANATION OF AMENDMENT
Mr. Waxman offered a manager's amendment in the form of an
amendment in the nature of a substitute, which was agreed to by
a voice vote, to consolidate and streamline provisions in the
bill, as well as to clarify responsibilities for analysis and
development of the National Manufacturing Strategy.
The manager's amendment combined two entities that would
have been created by the original bill--a Manufacturing
Strategy Task Force made up of federal officials and governors
and the President's Manufacturing Strategy Board consisting of
private sector members. The amendment consolidated them into
one advisory committee, referred to as the President's
Manufacturing Strategy Board, and reduced the total number of
members.
The amendment gave the now-consolidated President's
Manufacturing Strategy Board the responsibility for conducting
the comprehensive analysis of the manufacturing sector and
developing the initial draft of the strategy. It also changed
the frequency of required meetings.
The factors that the original bill set out for the
comprehensive analysis were also pared down and combined with
the original bill's language regarding goals--not because the
original list of factors was not important, but rather to
provide more streamlined language and address concerns over
excessive specificity. Nothing prevents the Board from
considering some or all of the issues listed in H.R. 4692 as
introduced in the House, as well as any relevant issues not
listed, should the Board so choose. The amendment also included
language relating to Board consultation with other entities to
avoid duplication of efforts. The amendment added a provision
requiring the Board to develop, when feasible, estimates
regarding outlays and revenue changes, as well as potential
savings.
In addition, the GAO review of the strategy was limited to
three cycles, rather than continuing in perpetuity. One of the
topics for the GAO report, regarding trends and short- and
long-term forecasts, was moved to the National Academy of
Sciences study section. That section was also streamlined,
eliminating the one-time studies required under the original
bill while supplementing the topics for the quadrennial study.
The amendment also added a provision to encourage quick
action and changed and clarified some deadlines.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
H.R. 4692, as reported by the Committee, did not change any
existing law.
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