Chief Manufacturing Officer Act

I 116TH CONGRESS 1ST SESSION H. R. 2900 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 MAY 22, 2019 Mr. RYAN (for himself, Mr. REED, Mr. CICILLINE, Mr. CARTWRIGHT, Mr. SWALWELL of California, Mrs. NAPOLITANO, Ms. KAPTUR, Mr. LIPINSKI, Mr. PASCRELL, Mr. MCGOVERN, Ms. STEVENS, Mr. KHANNA, and Mr. BALDERSON) 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 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 2900 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Chief Manufacturing 2 Officer Act’’. 3 SEC. 2. FINDINGS; SENSE OF CONGRESS. 4 (a) FINDINGS.—The Congress finds the following: 5 (1) The manufacturing sector consists of estab- 6 lishments that are primarily engaged in the trans- 7 formation of materials, substances, or components 8 into products. 9 (2) A healthy, innovative manufacturing base 10 plays a central role in the United States economy 11 and national defense. 12 (3) The Federal Government supports manufac- 13 turing in a variety of ways; support for manufac- 14 turing-related activities are dispersed across several 15 agencies in the executive branch. 16 (4) Manufacturing employment, output, and ex- 17 ports are impacted by a myriad of factors including 18 the state of infrastructure and transportation, tax 19 policies, environmental and other business regula- 20 tions, trade policies, innovation ecosystems, work- 21 force development, and education initiatives. Legisla- 22 tion and executive actions can have unintended im- 23 pact on the growth of manufacturing in the United 24 States. 25 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 2900 IH (5) Manufacturers account for 11 percent of 1 the total gross domestic product output in the 2 United States, employing 8 percent of the workforce. 3 Total output from manufacturing is more than 2 4 trillion dollars. There are nearly 13 million manufac- 5 turing employees in the United States, with an aver- 6 age annual compensation of about $80,000. 7 (6) Given that 99 percent of manufacturing 8 firms are small and medium size enterprises with a 9 predominantly local employment footprint, workforce 10 development programs must be rooted in local cir- 11 cumstance and requirements. 12 (b) SENSE OF CONGRESS.—It is the sense of Con- 13 gress that a well-designed National Manufacturing Strat- 14 egy would benefit the United States economy in several 15 important ways, including the following: 16 (1) A revitalized manufacturing sector would 17 enable the United States to increase its economic 18 growth from domestic and export production. 19 (2) Manufacturing jobs continue to pay higher 20 wages and benefits than non-manufacturing jobs. 21 Average domestic wages would rise in response to 22 growing manufacturing output. 23 (3) Manufacturing industries undertake two- 24 thirds of private-sector research and development, 25 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 2900 IH which fuels the innovation that serves as a primary 1 engine of economic growth. A growing manufac- 2 turing sector would help lay the foundations for fu- 3 ture economic expansion. 4 (4) The United States would expand its long- 5 standing leadership in advanced manufacturing tech- 6 nologies with Federal investments in manufacturing 7 research and development, education, and workforce 8 training. 9 (5) There exists a longstanding connection be- 10 tween domestic manufacturing, national defense, and 11 homeland security. A strong and innovative manu- 12 facturing industry will maintain the technical superi- 13 ority of the United States military and secure supply 14 chain integrity. 15 SEC. 3. DEFINITIONS. 16 In this Act: 17 (1) AGENCY.—The term ‘‘agency’’ has the 18 meaning given that term in section 551 of title 5, 19 United States Code. 20 (2) INSTITUTION OF HIGHER EDUCATION.—The 21 term ‘‘institution of higher education’’ has the 22 meaning given that term in section 101 of the High- 23 er Education Act of 1965 (20 U.S.C. 1001). 24 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 2900 IH (3) NATIONAL MANUFACTURING STRATEGY; 1 STRATEGY.—The terms ‘‘National Manufacturing 2 Strategy’’ and ‘‘Strategy’’ mean the National Manu- 3 facturing Strategy described in subsection (d). 4 (4) SMALL BUSINESS.—The term ‘‘small busi- 5 ness’’ means a company that has fewer than 500 6 employees. 7 (5) NONPROFIT ORGANIZATION.—The term 8 ‘‘nonprofit organization’’ means an organization that 9 is described under section 501(c) of the Internal 10 Revenue Code of 1986 and exempt from tax under 11 section 501(a) of such Code. 12 (6) STATE.—The term ‘‘State’’ means each of 13 the several States, the District of Columbia, each 14 commonwealth, territory, or possession of the United 15 States, and each federally recognized Indian Tribe. 16 (7) STATE EDUCATIONAL AGENCY.—The term 17 ‘‘State educational agency’’ has the meaning given 18 that term in section 8101 of the Elementary and 19 Secondary Education Act (20 U.S.C. 7801). 20 SEC. 4. UNITED STATES CHIEF MANUFACTURING OFFICER. 21 (a) APPOINTMENT.— 22 (1) IN GENERAL.—Not later than 6 months 23 after the date of the enactment of this Act, the 24 President shall appoint a United States Chief Manu- 25 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 2900 IH facturing Officer (referred to in this section as the 1 ‘‘Chief Manufacturing Officer’’). 2 (2) QUALIFICATIONS.—The President shall se- 3 lect the Chief Manufacturing Officer from among in- 4 dividuals who have basic qualifications and expertise 5 in manufacturing technology and policy. 6 (3) REPORTING.—The position of Chief Manu- 7 facturing Officer shall be in the Executive Office of 8 the President and shall report to the President 9 through the Chief of Staff. 10 (4) NATIONAL ECONOMIC COUNCIL.—The Chief 11 Manufacturing Officer shall be a member of the Na- 12 tional Economic Council. 13 (b) PAY.—The annual rate of pay for the Chief Man- 14 ufacturing Officer shall be level II of the Executive Sched- 15 ule rate of pay (subchapter II of chapter 53 of title 5, 16 United States Code) commensurate with the qualifications 17 and expertise of the individual appointed to be such Offi- 18 cer. 19 (c) DUTIES.—The duties of the Chief Manufacturing 20 Officer are as follows: 21 (1) To advise the President on policy issues 22 that affect the workforce and economic activity of 23 the manufacturing sector including science, tech- 24 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 2900 IH nology, trade, tariffs, currency, and procurement 1 policies. 2 (2) To deliver the National Manufacturing 3 Strategy. 4 (3) To convene interagency working groups to 5 align Federal policies to drive implementation of the 6 National Manufacturing Strategy, including collabo- 7 ration among the Departments of Education, Labor, 8 Energy, Commerce, and Defense, the Environmental 9 Protection Agency, National Science Foundation, 10 Small Business Administration, and other agencies. 11 (4) To evaluate the effectiveness of existing 12 measures designed to improve innovation, produc- 13 tivity, energy efficiency, economic growth, cybersecu- 14 rity, and manufacturing industries’ contribution to 15 national security. 16 (5) To propose studies and policy experiments, 17 in cooperation with agencies and the manufacturing 18 industry, to determine effective measures to advance 19 technological innovation and productivity in manu- 20 facturing in the United States. 21 (6) To propose studies and policy experiments, 22 in cooperation with agencies and the manufacturing 23 industry, to determine effective measures to improve 24 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 2900 IH environmental sustainability within the manufac- 1 turing industry. 2 (7) To connect manufacturing support pro- 3 grams across the United States to make them more 4 efficient, focused, and easier to use. 5 (8) To identify opportunities to improve the ef- 6 ficiency of grant opportunities that affect the manu- 7 facturing workforce. 8 (9) To assess Federal loan programs to ensure 9 greater access to capital for small businesses that 10 are manufacturers. 11 (10) To examine and improve tax incentives for 12 manufacturing companies in relation to increasing 13 support for investment in— 14 (A) workforce training; and 15 (B) productivity and systems improve- 16 ments, including smart supply chain manage- 17 ment technology and cybersecurity measures. 18 (11) To foster the use of best practices for 19 manufacturing, information technology, and cyberse- 20 curity by identifying and encouraging their use 21 across all Federal Government programs and 22 throughout the procurement process. 23 (12) To encourage the creation of joint initia- 24 tives by State and local governments, regional orga- 25 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 2900 IH nizations, private companies, institutions of higher 1 education, nonprofit organizations, and Federal lab- 2 oratories to encourage technology transfer, to stimu- 3 late innovation, and pursue targeted workforce de- 4 velopment to promote an environment ready for in- 5 vestments in manufacturing-related industries. 6 (13) To participate in discussions among com- 7 panies that manufacture in the United States on 8 topics of interest to the manufacturing industry and 9 workforce, including discussions regarding emerging 10 and advanced technologies. 11 (14) To work with the manufacturing industry 12 to identify needs, challenges, and opportunities 13 across the manufacturing sector which, if addressed, 14 could make a significant contribution to improving 15 the ability of manufacturers in the United States to 16 compete successfully in international markets. 17 (15) To carry out ongoing competitive analysis 18 of the manufacturing policies of the governments of 19 other countries, alongside their industrial structures 20 and labor conditions, to help identify factors that 21 successfully support the development of strong man- 22 ufacturing industries. 23 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 2900 IH (16) To analyze legislative and agency pro- 1 posals to assess and advise on their potential direct 2 and indirect impact on the manufacturing industry. 3 (17) To work with agencies and the Director of 4 the Office of Management and Budget in the devel- 5 opment of manufacturing-related elements of the 6 President’s annual budget request to Congress. 7 (18) To identify and share best practice activi- 8 ties designed to help support struggling manufac- 9 turing enterprises to review business plans, improve 10 competitiveness, and manage issues like succession 11 planning to avoid closures and retain jobs. 12 (19) To assist States in their economic develop- 13 ment plans for manufacturing, in their efforts to en- 14 courage manufacturing enterprises to retain manu- 15 facturing facilities within the United States, and to 16 foster the domestic retention of facilities and jobs. 17 (20) To support communities negatively im- 18 pacted by the closure or relocation of manufacturing 19 facilities by promoting efforts to create an environ- 20 ment and workforce equipped to attract advanced 21 manufacturing enterprises. 22 (21) To promote and grow the Network for 23 Manufacturing Innovation Program established 24 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 11 •HR 2900 IH under section 34 of the National Institute of Stand- 1 ards and Technology Act (15 U.S.C. 278s). 2 (22) To review the effectiveness of and identify 3 shortcomings in existing statutes and policies fo- 4 cused on promoting the domestic use of federally 5 funded research and development in manufacturing 6 technology. 7 (23) To identify and evaluate changes to exist- 8 ing statutes and policies and to recommend legisla- 9 tion and policies to more effectively ensure the do- 10 mestic use of federally funded research and develop- 11 ment in manufacturing technology and to recover 12 such investments from profits realized as a result of 13 offshore manufacturing of systems or components 14 utilizing federally funded technologies or their de- 15 rivatives. 16 (24) To work with appropriate agencies, State 17 and local governments, regional organizations, insti- 18 tutions of higher education, nonprofit organizations, 19 and private companies to stimulate interest in manu- 20 facturing careers. 21 (25) To enhance public perception of manufac- 22 turing careers, encouraging participation of public 23 and private organizations, State educational agen- 24 cies, and institutions of higher education in the an- 25 VerDate Sep 11 2014 21:03 Jun 06, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2900.IH H2900 pamtmann on DSKBFK8HB2PROD with BILLS 12 •HR 2900 IH nual celebration of manufacturing industries on na- 1 tional Manufacturing Day. 2 (26) To coordinate with activities under the 3 Foreign Investment Risk Review Modernization Act 4 of 2018 (Public Law 115–232) and the Committee 5 on Foreign Investment in the United States to en- 6 sure the protecti [Text truncated for display. 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