Chief Manufacturing Officer Act

I 117TH CONGRESS 1ST SESSION H. R. 1591 To establish the United States Chief Manufacturing Officer in the Executive Office of the President with the responsibility of developing a National Manufacturing Strategy to revitalize the manufacturing sector, spur eco- nomic growth, and expand United States competitiveness, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 3, 2021 Mr. RYAN (for himself and Mr. REED) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To establish the United States Chief Manufacturing Officer in the Executive Office of the President with the respon- sibility of developing a National Manufacturing Strategy to revitalize the manufacturing sector, spur economic growth, and expand United States competitiveness, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Chief Manufacturing 4 Officer Act’’. 5 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1591 IH SEC. 2. FINDINGS; SENSE OF CONGRESS. 1 (a) FINDINGS.—The Congress finds the following: 2 (1) The manufacturing sector consists of estab- 3 lishments that are primarily engaged in the trans- 4 formation of materials, substances, or components 5 into products. 6 (2) A healthy, innovative manufacturing base 7 plays a central role in the United States economy 8 and national defense. 9 (3) The Federal Government supports manufac- 10 turing in a variety of ways; support for manufac- 11 turing-related activities are dispersed across several 12 agencies in the executive branch. 13 (4) Manufacturing employment, output, and ex- 14 ports are impacted by a myriad of factors including 15 the state of infrastructure and transportation, tax 16 policies, environmental and other business regula- 17 tions, trade policies, innovation ecosystems, work- 18 force development, and education initiatives. Legisla- 19 tion and executive actions can have unintended im- 20 pact on the growth of manufacturing in the United 21 States. 22 (5) Manufacturers account for 11 percent of 23 the total gross domestic product output in the 24 United States, employing 8 percent of the workforce. 25 Total output from manufacturing is more than 2 26 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1591 IH trillion dollars. There are nearly 13 million manufac- 1 turing employees in the United States, with an aver- 2 age annual compensation of about $85,000. 3 (6) Given that 99 percent of manufacturing 4 firms are small and medium size enterprises with a 5 predominantly local employment footprint, workforce 6 development programs must be rooted in local cir- 7 cumstance and requirements. 8 (b) SENSE OF CONGRESS.—It is the sense of Con- 9 gress that a well-designed National Manufacturing Strat- 10 egy would benefit the United States economy in several 11 important ways, including the following: 12 (1) A revitalized manufacturing sector would 13 enable the United States to increase its economic 14 growth from domestic and export production. 15 (2) Manufacturing jobs continue to pay higher 16 wages and benefits than non-manufacturing jobs. 17 Average domestic wages would rise in response to 18 growing manufacturing output. 19 (3) Manufacturing industries undertake two- 20 thirds of private-sector research and development, 21 which fuels the innovation that serves as a primary 22 engine of economic growth. A growing manufac- 23 turing sector would help lay the foundations for fu- 24 ture economic expansion. 25 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1591 IH (4) The United States would expand its long- 1 standing leadership in advanced manufacturing tech- 2 nologies with Federal investments in manufacturing 3 research and development, education, and workforce 4 training. 5 (5) There exists a longstanding connection be- 6 tween domestic manufacturing, national defense, and 7 homeland security. A strong and innovative manu- 8 facturing industry will maintain the technical superi- 9 ority of the United States military and secure supply 10 chain integrity. 11 SEC. 3. DEFINITIONS. 12 In this Act: 13 (1) AGENCY.—The term ‘‘agency’’ has the 14 meaning given that term in section 551 of title 5, 15 United States Code. 16 (2) INSTITUTION OF HIGHER EDUCATION.—The 17 term ‘‘institution of higher education’’ has the 18 meaning given that term in section 101 of the High- 19 er Education Act of 1965 (20 U.S.C. 1001). 20 (3) NATIONAL MANUFACTURING STRATEGY; 21 STRATEGY.—The terms ‘‘National Manufacturing 22 Strategy’’ and ‘‘Strategy’’ mean the National Manu- 23 facturing Strategy described in subsection (d). 24 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 1591 IH (4) SMALL BUSINESS.—The term ‘‘small busi- 1 ness’’ means a company that has fewer than 500 2 employees. 3 (5) NONPROFIT ORGANIZATION.—The term 4 ‘‘nonprofit organization’’ means an organization that 5 is described under section 501(c) of the Internal 6 Revenue Code of 1986 and exempt from tax under 7 section 501(a) of such Code. 8 (6) STATE.—The term ‘‘State’’ means each of 9 the several States, the District of Columbia, each 10 commonwealth, territory, or possession of the United 11 States, and each federally recognized Indian Tribe. 12 (7) STATE EDUCATIONAL AGENCY.—The term 13 ‘‘State educational agency’’ has the meaning given 14 that term in section 8101 of the Elementary and 15 Secondary Education Act (20 U.S.C. 7801). 16 SEC. 4. UNITED STATES CHIEF MANUFACTURING OFFICER. 17 (a) APPOINTMENT.— 18 (1) IN GENERAL.—Not later than 6 months 19 after the date of the enactment of this Act, the 20 President shall appoint a United States Chief Manu- 21 facturing Officer (referred to in this section as the 22 ‘‘Chief Manufacturing Officer’’). 23 (2) QUALIFICATIONS.—The President shall se- 24 lect the Chief Manufacturing Officer from among in- 25 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 1591 IH dividuals who have basic qualifications and expertise 1 in manufacturing technology and policy. 2 (3) REPORTING.—The position of Chief Manu- 3 facturing Officer shall be in the Executive Office of 4 the President and shall report to the President 5 through the Chief of Staff. 6 (4) NATIONAL ECONOMIC COUNCIL.—The Chief 7 Manufacturing Officer shall be a member of the Na- 8 tional Economic Council. 9 (b) PAY.—The annual rate of pay for the Chief Man- 10 ufacturing Officer shall be level II of the Executive Sched- 11 ule rate of pay (subchapter II of chapter 53 of title 5, 12 United States Code) commensurate with the qualifications 13 and expertise of the individual appointed to be such Offi- 14 cer. 15 (c) DUTIES.—The duties of the Chief Manufacturing 16 Officer are as follows: 17 (1) To advise the President on policy issues 18 that affect the workforce and economic activity of 19 the manufacturing sector including science, tech- 20 nology, trade, tariffs, currency, and procurement 21 policies. 22 (2) To deliver the National Manufacturing 23 Strategy. 24 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 1591 IH (3) To convene interagency working groups to 1 align Federal policies to drive implementation of the 2 National Manufacturing Strategy, including collabo- 3 ration among the Departments of Education, Labor, 4 Energy, Commerce, and Defense, the Environmental 5 Protection Agency, National Science Foundation, 6 Small Business Administration, and other agencies. 7 (4) To evaluate the effectiveness of existing 8 measures designed to improve innovation, produc- 9 tivity, energy efficiency, economic growth, cybersecu- 10 rity, and manufacturing industries’ contribution to 11 national security. 12 (5) To propose studies and policy experiments, 13 in cooperation with agencies and the manufacturing 14 industry, to determine effective measures to advance 15 technological innovation and productivity in manu- 16 facturing in the United States. 17 (6) To propose studies and policy experiments, 18 in cooperation with agencies and the manufacturing 19 industry, to determine effective measures to improve 20 environmental sustainability within the manufac- 21 turing industry. 22 (7) To connect manufacturing support pro- 23 grams across the United States to make them more 24 efficient, focused, and easier to use. 25 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 1591 IH (8) To identify opportunities to improve the ef- 1 ficiency of grant opportunities that affect the manu- 2 facturing workforce. 3 (9) To assess Federal loan programs to ensure 4 greater access to capital for small businesses that 5 are manufacturers. 6 (10) To examine and improve tax incentives for 7 manufacturing companies in relation to increasing 8 support for investment in— 9 (A) workforce training; and 10 (B) productivity and systems improve- 11 ments, including smart supply chain manage- 12 ment technology and cybersecurity measures. 13 (11) To foster the use of best practices for 14 manufacturing, information technology, and cyberse- 15 curity by identifying and encouraging their use 16 across all Federal Government programs and 17 throughout the procurement process. 18 (12) To encourage the creation of joint initia- 19 tives by State and local governments, regional orga- 20 nizations, private companies, institutions of higher 21 education, nonprofit organizations, and Federal lab- 22 oratories to encourage technology transfer, to stimu- 23 late innovation, and pursue targeted workforce de- 24 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 1591 IH velopment to promote an environment ready for in- 1 vestments in manufacturing-related industries. 2 (13) To participate in discussions among com- 3 panies that manufacture in the United States on 4 topics of interest to the manufacturing industry and 5 workforce, including discussions regarding emerging 6 and advanced technologies. 7 (14) To work with the manufacturing industry 8 to identify needs, challenges, and opportunities 9 across the manufacturing sector which, if addressed, 10 could make a significant contribution to improving 11 the ability of manufacturers in the United States to 12 compete successfully in international markets. 13 (15) To carry out ongoing competitive analysis 14 of the manufacturing policies of the governments of 15 other countries, alongside their industrial structures 16 and labor conditions, to help identify factors that 17 successfully support the development of strong man- 18 ufacturing industries. 19 (16) To analyze legislative and agency pro- 20 posals to assess and advise on their potential direct 21 and indirect impact on the manufacturing industry. 22 (17) To work with agencies and the Director of 23 the Office of Management and Budget in the devel- 24 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 1591 IH opment of manufacturing-related elements of the 1 President’s annual budget request to Congress. 2 (18) To identify and share best practice activi- 3 ties designed to help support struggling manufac- 4 turing enterprises to review business plans, improve 5 competitiveness, and manage issues like succession 6 planning to avoid closures and retain jobs. 7 (19) To assist States in their economic develop- 8 ment plans for manufacturing, in their efforts to en- 9 courage manufacturing enterprises to retain manu- 10 facturing facilities within the United States, and to 11 foster the domestic retention of facilities and jobs. 12 (20) To support communities negatively im- 13 pacted by the closure or relocation of manufacturing 14 facilities by promoting efforts to create an environ- 15 ment and workforce equipped to attract advanced 16 manufacturing enterprises. 17 (21) To promote and grow the Network for 18 Manufacturing Innovation Program established 19 under section 34 of the National Institute of Stand- 20 ards and Technology Act (15 U.S.C. 278s). 21 (22) To review the effectiveness of and identify 22 shortcomings in existing statutes and policies fo- 23 cused on promoting the domestic use of federally 24 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 1591 IH funded research and development in manufacturing 1 technology. 2 (23) To identify and evaluate changes to exist- 3 ing statutes and policies and to recommend legisla- 4 tion and policies to more effectively ensure the do- 5 mestic use of federally funded research and develop- 6 ment in manufacturing technology and to recover 7 such investments from profits realized as a result of 8 offshore manufacturing of systems or components 9 utilizing federally funded technologies or their de- 10 rivatives. 11 (24) To work with appropriate agencies, State 12 and local governments, regional organizations, insti- 13 tutions of higher education, nonprofit organizations, 14 and private companies to stimulate interest in manu- 15 facturing careers. 16 (25) To enhance public perception of manufac- 17 turing careers, encouraging participation of public 18 and private organizations, State educational agen- 19 cies, and institutions of higher education in the an- 20 nual celebration of manufacturing industries on na- 21 tional Manufacturing Day. 22 (26) To coordinate with activities under the 23 Foreign Investment Risk Review Modernization Act 24 of 2018 (Public Law 115–232) and the Committee 25 VerDate Sep 11 2014 22:21 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1591.IH H1591 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 1591 IH on Foreign Investment in the United States to en- 1 sure the protection of sensitive emerging United 2 States manufacturing-related technologies. 3 (27) To perform such other functions or activi- 4 ties as the President may assign. 5 (d) [Text truncated for display. Full text available on Congress.gov.]