,,ii #aadth ,,congress #b;d ,session ,s4 #bggi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #ab1 #bjaf ,mr4 ,coons 7for himself1 ,ms4 ,ayotte1 and ,mr4 ,peters7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to reauthorize the ,hollings ,manufacturing ,extension ,partnership1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,manufacturing ,extension ,partnership ,improvement ,act of #bjaf4 #b4 ,reauthorization of ,hollings ,manufacturing ,extension ,partnership 7a7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary of ,commerce to carry out the ,hollings ,manufacturing ,extension ,partnership under sections #be and #bf of the ,national ,institute of ,standards and ,technology ,act 7#ae ,u4,s4,c4 #bghk and #bghl7 #bfj1jjj1jjj for each of fiscal years #bjag through #bjbj4 7b7 ,improvements ,section #be of the ,national ,institute of ,standards and ,technology ,act 7#ae ,u4,s4,c4 #bghk7 is amended to read as follows3 #be4 ,hollings ,manufacturing ,extension ,partnership 7a7 ,establishment and purpose 7#a7 ,establishment 7,a7 ,in general ,the ,secretary1 through the ,director and1 if appropriate1 through other officials1 shall establish a program for the provision of assistance for the creation and support of manufacturing extension centers for the transfer of manufacturing technology and best business practices4 7,b7 ,designation of program ,the program established under subparagraph 7,a7 shall be known as the ,hollings ,manufacturing ,extension ,partnership 7in this section referred to as the ,program74 7,c7 ,designation of centers ,the centers provided for under subparagraph 7,a7 shall be known as the ,hollings ,manufacturing ,extension ,centers 7in this ,act referred to as the ,centers74 7#b7 ,affiliations ,each ,center created under the ,program shall be affiliated with a ,united ,states-based nonprofit institution1 consortium thereof1 institution of higher education1 or ,state or local government that applies for and is awarded financial support under subsection 7c77#a77;,a74 7#c7 ,objective ,the objective of the ,program shall be to enhance competitiveness1 productivity1 and technological performance in ,united ,states manufacturing through-- 7,a7 the transfer of manufacturing technology and techniques developed at the ,institute to ,centers and1 through them1 to manufacturing companies throughout the ,united ,states2 7,b7 the participation of individuals from industry1 institutions of higher education1 ,state governments1 other ,federal agencies1 and1 when appropriate1 the ,institute in cooperative technology transfer activities2 7,c7 efforts to make new manufacturing technology and processes usable by ,united ,states-based small and medium-sized companies2 7,d7 the active dissemination of scientific1 engineering1 technical1 and management information about manufacturing to industrial firms1 including small and medium-sized manufacturing companies2 7,e7 the utilization1 when appropriate1 of the expertise and capability that exists in ,federal agencies1 other than the ,institute1 and ,federally sponsored laboratories2 7,f7 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 serve2 and 7,g7 promoting and expanding certification systems offered through industry1 associations1 and local colleges1 when appropriate4 7b7 ,activities ,the activities of a ,center shall include the following3 7#a7 ,the establishment of automated manufacturing systems and other advanced production technologies1 based on ,institute-supported research1 for the purpose of demonstrations and technology transfer4 7#b7 ,the active transfer and dissemination of research findings and ,center expertise to a wide range of companies and enterprises1 particularly small and medium-sized manufacturers4 7#c7 ,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 schools4 7c7 ,financial assistance 7#a7 ,authorization 7,a7 ,in general ,except as provided in subparagraph 7,b7 and as otherwise provided in this subsection1 the ,secretary may provide financial assistance through a cooperative agreement to any ,center created under the ,program4 7,b7 ,cost sharing ,the ,secretary may not provide to a ,center1 under subparagraph 7,a71 more than #ej percent of the capital and annual operating and maintenance funds required to create and maintain such ,center4 7,c7 ,rule of construction ,for purposes of subparagraph 7,b71 no amount received by a ,center under a provision of law other than subparagraph 7,a7 may be considered as an amount provided under subparagraph 7,a74 7#b7 ,application 7,a7 ,in general ,a nonprofit institution1 or consortium thereof1 an institution of higher education1 or a ,state or local government seeking financial assistance for a ,center under paragraph 7#a77;,a7 shall submit to the ,secretary an application therefor at such time1 in such manner1 and containing such information as the ,secretary may require4 7,b7 ,cost sharing 7i7 ,in general ,in order to receive assistance under paragraph 7#a77;,a71 an applicant for financial assistance under subparagraph 7,a7 of this paragraph shall provide adequate assurances that the applicant and the applicant's partnering organizations will obtain funding for #ej percent or more of the capital and annual operating and maintenance funds required to create and maintain the ,center from sources other than assistance under paragraph 7#a77;,a74 7ii7 ,agreements with other entities ,in meeting the #ej percent requirement in clause 7i71 a ,center may enter into agreements with other entities1 such as private industry1 institutions of higher education1 and ,state governments1 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 companies4 7iii7 ,accounting of contributions from third parties ,all contributions described in clause 7ii7 from an entity to a ,center pursuant to an agreement described in such clause that is determined by the ,center as programmatically reasonable and allocable under ,program procedures shall be considered as a portion of the ,center's contribution for purposes of clause 7i74 7,c7 ,legal rights ,each person who submits an application under subparagraph 7,a7 with respect to a ,center shall include in the application a proposal for the allocation of the legal rights associated with any invention which may result from the activities of the ,center4 7#c7 ,merit review of applications 7,a7 ,in general ,the ,secretary shall subject to merit review each application received under paragraph 7#b77;,a74 7,b7 ,considerations ,in making a decision whether to approve an application received under paragraph 7#b77;,a7 and provide financial support under paragraph 7#a71 the ,secretary shall consider1 at a minimum1 the following3 7i7 ,the merits of the application1 particularly those portions of the application regarding technology transfer1 training and education1 and adaptation of manufacturing technologies to the needs of particular industrial sectors4 7ii7 ,the quality of service to be provided4 7iii7 ,geographical diversity and extent of service area4 7iv7 ,the percentage of funding from other sources4 7#d7 ,evaluations 7,a7 ,third and eighth year evaluations by panel 7i7 ,in general ,the ,secretary shall ensure that each ,center that receives financial assistance under paragraph 7#a7 is evaluated during its third and eighth years of operation by an evaluation panel appointed by the ,secretary4 7ii7 ,composition ,the ,secretary shall ensure that each evaluation panel appointed under subparagraph 7,a7 is composed of-- 7,i7 private experts1 none of whom are connected with the ,center evaluated by the panel2 and 7,,ii7 ,federal officials4 7iii7 ,chair ,for each evaluation panel appointed under subparagraph 7,a71 the ,secretary shall appoint a chairperson who is an official of the ,institute4 7,b7 ,fifth year evaluation by ,secretary ,in the fifth year of operation of a ,center receiving financial support under paragraph 7#a71 the ,secretary shall conduct a review of the ,center4 7,c7 ,performance measurement ,in evaluating a ,center pursuant to subparagraph 7,a7 or 7,b71 an evaluation panel or the ,secretary1 as the case may be1 shall measure the performance of the ,center against-- 7i7 the objectives specified in subsection 7a77#c72 or 7ii7 such other objectives as the ,secretary considers appropriate4 7,d7 ,positive evaluations ,if an evaluation of a ,center under subparagraph 7,a7 is positive1 the ,secretary may continue under paragraph 7#a7 to provide financial assistance to the ,center-- 7i7 in the case of an evaluation occurring in the third year of a ,center1 through the fifth year of the ,center2 7ii7 in the case of a review by the ,secretary occurring in the fifth year of a ,center1 through the eighth year of the ,center2 and 7iii7 in the case of an evaluation occurring in the eighth year of a ,center1 through the tenth year of the ,center4 7,e7 ,other than positive evaluations 7i7 ,probation ,a ,center that receives an evaluation under subparagraph 7,a7 or 7,b7 that is other than positive shall be considered to be on probation during the period beginning on the date on which the ,center receives notice under subclause 7,i7 of clause 7ii7 and ending on the date that reevaluation of the ,center has been completed under subclause 7,,iii7 of such clause4 7ii7 ,notice and reevaluation ,if a panel or the ,secretary gives a ,center an evaluation under subparagraph 7,a7 or 7,b71 as the case may be1 an evaluation that is other than positive1 the panel or the ,secretary1 as the case may be1 shall-- 7,i7 notify the ,center of the reason for the other than positive evaluation1 including any deficiencies in the performance of the ,center that the panel or the ,secretary1 as the case may be1 has identified2 7,,ii7 assist the ,center in rectifying the deficiencies by providing the ,center1 not less frequently than once every #c months1 an analysis of the ,center1 if the panel or the ,secretary1 as the case may be1 considers doing so appropriate2 and 7,,iii7 reevaluate the ,center not later than #a year after the date on which notice is submitted under subclause 7,i74 7iii7 ,continued support during period of probation ,the ,secretary may provide continued funding under paragraph 7#a7 for a ,center during a ,center's period of probation under this subparagraph4 7iv7 ,remedy 7,i7 ,in general ,if a ,center receives an evaluation under subclause 7,,iii7 of clause 7ii7 that is other than positive because the ,center has not rectified the deficiencies identified by the panel or the ,secretary1 as the case may be1 in the notice submitted under subclause 7,i7 of such clause or shown a significant improvement in its performance1 the ,secretary shall conduct a new competition to select an operator for the ,center4 7,,ii7 ,treatment of ,centers subject to new competition ,upon the selection of an operator for a ,center under subclause 7,i71 the ,center shall be considered a new ,center for purposes of this paragraph and paragraph 7#e74 7#e7 ,reapplication competition for financial support after #aj years 7,a7 ,in general ,if an operator of a ,center has received financial support under paragraph 7#a7 for a period of #aj consecutive years1 the ,secretary shall conduct a new competition to select an operator for the ,center consistent with the plan required under paragraph 7#f77;,a77ii74 7,b7 ,incumbent operators ,an operator of a ,center that has received financial support under paragraph 7#a7 for a period of #aj consecutive years that the ,secretary determines is in good standing shall be eligible to compete in the competition for the ,center conducted under subparagraph 7,a74 7,c7 ,treatment of ,centers subject to reapplication competition ,upon the selection of an operator for a ,center under subparagraph 7,a71 the ,center shall be considered a new ,center for purposes of this paragraph and paragraph 7#d74 7#f7 ,reports 7,a7 ,status report and plan ,not later than #ahj days after the date of the enactment of the ,manufacturing ,extension ,partnership ,improvement ,act of #bjaf1 the ,secretary shall submit to the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives-- 7i7 a report on how the ,institute has conducted evaluations1 competitions1 and reapplication competitions under this subsection2 and 7ii7 a plan as to how the ,institute will conduct such evaluations1 competitions1 and reapplication competitions4 7,b7 ,independent assessment of reapplication competition process 7i7 ,in general ,the ,secretary shall contract with an independent organization to perform an assessment of the implementation of the competition and reapplication competition processes under this subsection not later than #c years after the date of the submittal of the report under subparagraph 7,a74 7ii7 ,consultation with ,,mep ,advisory ,board ,the organization conducting the assessment under clause 7i7 may consult with the ,,mep ,advisory ,board4 7,c7 ,comparison of ,centers 7i7 ,in general ,not later than #b years after the date of the enactment of the ,manufacturing ,extension ,partnership ,improvement ,act of #bjaf1 the ,secretary shall submit to the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives a report providing information on the first and second years of operations of ,centers that were subject to a competition conducted pursuant to paragraph 7#d77;,e77iv77,i7 as compared to longstanding ,centers4 7ii7 ,contents ,the report required by clause 7i7 shall include detail on the engagement in services provided by ,centers and the characteristics of services provided1 including volume and type of services1 so that the ,committees can evaluate whether the cost-sharing ratio has an effect on the services provided by ,centers4 7d7 ,operational requirements 7#a7 ,patent rights ,the provisions of chapter #ah of title #ce1 ,united ,states ,code1 shall apply1 to the extent not inconsistent with this section1 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 ,director4 7#b7 ,protection of confidential information of ,center clients ,the following information1 if obtained by the ,federal ,government in connection with an activity of a ,center or the ,program1 shall be exempt from public disclosure under section #eeb of title #e1 ,united ,states ,code3 7,a7 ,information on the business operation of any participant in the ,program or of a client of a ,center4 7,b7 ,trade secrets of any client of a ,center4 7#c7 ,oversight boards 7,a7 ,in general ,as a condition on receipt of financial assistance under paragraph 7#a71 a ,center shall establish a board to oversee the operations of the ,center4 7,b7 ,membership 7i7 ,in general ,each board established under subparagraph 7,a7 shall be composed of members as follows3 7,i7 ,the membership of each board shall be representative of stakeholders in the region in which the ,center is located4 7,,ii7 ,a majority of the members of the board shall be selected from among individuals who own or are employed by small or medium-sized manufacturing companies4 7ii7 ,limitation ,a member of a board established under subparagraph 7,a7 may not serve on more than one board established under such subparagraph4 7,c7 ,bylaws 7i7 ,in general ,each board established under subparagraph 7,a7 shall adopt and submit to the ,director bylaws to govern the operation of the board4 7ii7 ,conflicts of interest ,bylaws adopted under clause 7i7 shall include policies to minimize conflicts of interest1 including such policies relating to disclosure of relationships and recusal as may be necessary to minimize conflicts of interest4 7e7 ,acceptance of funds ,in addition to such sums as may be appropriated to the ,secretary and ,director to operate the ,program1 the ,secretary and ,director may also accept funds from other ,federal departments and agencies and from the private sector under section #b7;c77#g71 to be available to the extent provided by appropriations ,acts1 for the purpose of strengthening ,united ,states manufacturing4 7f7 ,,mep ,advisory ,board 7#a7 ,establishment ,there is established within the ,institute a ,manufacturing ,extension ,partnership ,advisory ,board 7in this subsection referred to as the ,,mep ,advisory ,board74 7#b7 ,membership 7,a7 ,composition 7i7 ,in general ,the ,,mep ,advisory ,board shall consist of not fewer than #aj members appointed by the ,director and broadly representative of stakeholders4 7ii7 ,requirements ,of the members appointed under clause 7i7-- 7,i7 at least #b members shall be employed by or on an advisory board for a ,center2 7,,ii7 at least #a member shall represent a community college2 and 7,,iii7 at least #e other members shall be from ,united ,states small businesses in the manufacturing sector4 7iii7 ,no ,federal employees ,no member of the ,,mep ,advisory ,board shall be an employee of the ,federal ,government4 7,b7 ,term ,except as provided in subparagraph 7,c7 or 7,d71 the term of office of each member of the ,,mep ,advisory ,board shall be #c years4 7,c7 ,vacancies ,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 term4 7,d7 ,serving consecutive terms ,any person who has completed #b consecutive full terms of service on the ,,mep ,advisory ,board shall thereafter be ineligible for appointment during the #a-year period following the expiration of the second such term4 7#c7 ,meetings ,the ,,mep ,advisory ,board shall meet not less than twice each year and shall provide to the ,director-- 7,a7 advice on ,hollings ,manufacturing ,extension ,partnership programs1 plans1 and policies2 7,b7 assessments of the soundness of ,hollings ,manufacturing ,extension ,partnership plans and strategies2 and 7,c7 assessments of current performance against ,hollings ,manufacturing ,extension ,partnership program plans4 7#d7 ,federal ,advisory ,committee ,act applicability 7,a7 ,in general ,in discharging its duties under this subsection1 the ,,mep ,advisory ,board shall function solely in an advisory capacity1 in accordance with the ,federal ,advisory ,committee ,act4 7,b7 ,exception ,section #ad of the ,federal ,advisory ,committee ,act shall not apply to the ,,mep ,advisory ,board4 7#e7 ,annual report 7,a7 ,in general ,not less frequently than once each year1 the ,,mep ,advisory ,board shall transmit a report to the ,secretary for transmittal to ,congress within #cj days after the submission to ,congress of the ,president's annual budget request in each year4 7,b7 ,contents ,such report shall address the status of the ,program and comment on the relevant sections of the programmatic planning document and updates thereto transmitted to ,congress by the ,director under subsections 7c7 and 7d7 of section #bc4 7g7 ,competitive awards program 7#a7 ,establishment ,the ,director shall establish within the ,hollings ,manufacturing ,extension ,partnership and section #bf a program of competitive awards among participants described in paragraph 7#b7 for the purposes described in paragraph 7#c74 7#b7 ,participants ,participants receiving awards under this subsection shall be the ,centers1 or a consortium of such ,centers4 7#c7 ,purpose1 themes1 and reimbursement 7,a7 ,purpose ,the purpose of the program established under paragraph 7#a7 is to add capabilities to the ,hollings ,manufacturing ,extension ,partnership1 including the development of projects to solve new or emerging manufacturing problems as determined by the ,director1 in consultation with the ,director of the ,hollings ,manufacturing ,extension ,partnership1 the ,,mep ,advisory ,board1 other ,federal agencies1 and small and medium-sized manufacturers4 7,b7 ,themes ,the ,director may identify one or more themes for a competition carried out under this subsection1 which may vary from year to year1 as the ,director considers appropriate after assessing the needs of manufacturers and the success of previous competitions4 7,c7 ,reimbursement ,centers may be reimbursed for costs incurred by the ,centers under this subsection4 7#d7 ,applications ,applications for awards under this subsection shall be submitted in such manner1 at such time1 and containing such information as the ,director shall require in consultation with the ,,mep ,advisory ,board4 7#e7 ,selection 7,a7 ,peer review and competitively awarded ,the ,director shall ensure that awards under this subsection are peer reviewed and competitively awarded4 7,b7 ,geographic diversity ,the ,director shall endeavor to have broad geographic diversity among selected proposals4 7,c7 ,criteria ,the ,director shall select applications to receive awards that the ,director determines will-- 7i7 improve the competitiveness of industries in the region in which the ,center or ,centers are located2 7ii7 create jobs or train newly hired employees2 7iii7 promote the transfer and commercialization of research and technology from institutions of higher education1 national laboratories or other ,federally-funded research programs1 and nonprofit research institutes2 7iv7 recruit a diverse manufacturing workforce1 including through outreach to women and minorities2 or 7v7 achieve such other result as the ,director considers will advance the objective set forth in subsection 7a77#c74 7#f7 ,program contribution ,recipients of awards under this subsection shall not be required to provide a matching contribution4 7#g7 ,global marketplace projects ,in making an award under this subsection1 the ,director1 in consultation with the ,,mep ,advisory ,board and the ,secretary1 may take into consideration whether an application has significant potential for enhancing the competitiveness of small and medium-sized ,united ,states manufacturers in the global marketplace4 7#h7 ,workforce development projects ,in making an award under this subsection1 the ,director1 in consultation with the ,,mep ,advisory ,board and the ,secretary1 may take into consideration whether a project supports the development and implementation of apprenticeship programs1 internship programs1 student-based learning programs1 or industry-recognized certification programs to help serve the workforce needs of consortia of manufacturing companies4 7#i7 ,industry consideration 7,a7 ,construction industry modernization ,in making an award under this subsection1 the ,director1 in consultation with the ,,mep ,advisory ,board and the ,secretary1 may take into consideration whether a project supports the modernization of the construction industry4 7,b7 ,health care industry ,in making an award under this subsection1 the ,director1 in consultation with the ,,mep ,advisory ,board and the ,secretary1 may take into consideration whether a project supports the modernization of the health care industry4 7,c7 ,biotechnology and biomanufacturing ,in making an award under this subsection1 the ,director1 in consultation with the ,,mep ,advisory ,board and the ,secretary1 may take into consideration whether a project supports the biotechnology and biomanufacturing industry4 7#aj7 ,duration ,the duration of an award under this subsection shall be for not more than #c years4 7h7 ,evaluation of obstacles unique to small manufacturers ,as part of the ,hollings ,manufacturing ,extension ,partnership1 the ,director shall-- 7#a7 evaluate obstacles that are unique to small manufacturers that prevent such manufacturers from effectively competing in the global market2 7#b7 implement a comprehensive plan to train the ,centers to address such obstacles2 and 7#c7 facilitate improved communication between the ,centers to assist such manufacturers in implementing appropriate1 targeted solutions to such obstacles4 7i7 ,development of open access resources ,as part of the ,hollings ,manufacturing ,extension ,partnership1 the ,director shall develop open access resources that address best practices related to inventory sourcing1 supply chain management1 manufacturing techniques1 available ,federal resources1 and other topics to further the competitiveness and profitability of small manufacturers4 7j7 ,innovation ,services ,initiative ,as part of the ,hollings ,manufacturing ,extension ,partnership1 the ,director shall establish an innovation services initiative to assist small and medium-sized manufacturers in improving profitability through the reduction of energy use1 greenhouse gas emissions1 and environmental waste4 7k7 ,definitions ,in this section3 7#a7 ,area career and technical education school ,the term area career and technical education school has the meaning given such term in section #c of the ,carl ,d4 ,perkins ,career and ,technical ,education ,improvement ,act of #bjjf 7#bj ,u4,s4,c4 #bcjb74 7#b7 ,community college ,the term community college means an institution of higher education 7as defined under section #aja7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja7;a777 at which the highest degree that is predominately awarded to students is an associate's degree4 4