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111th Congress                                            Rept. 111-574
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================



 
              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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \7\National Defense Industrial Association, Manufacturing Division, 
Maintaining a Viable Defense Industrial Base (Aug. 1, 2008).
---------------------------------------------------------------------------
    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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------

                          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.