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112th Congress                                            Rept. 112-659
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================
 
           AMERICAN MANUFACTURING COMPETITIVENESS ACT OF 2012

                                _______
                                

 September 10, 2012.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Upton, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5865]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5865) to promote the growth and competitiveness 
of American manufacturing, 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
Hearings.........................................................     8
Committee Consideration..........................................     8
Committee Votes..................................................     8
Committee Oversight Findings.....................................     8
Statement of General Performance Goals and Objectives............     8
New Budget Authority, Entitlement Authority, and Tax Expenditures     9
Earmarks, Tax Benefits, and Tariff Benefits......................     9
Committee Cost Estimate..........................................     9
Congressional Budget Office Estimate.............................     9
Federal Mandates Statement.......................................    10
Advisory Committee Statement.....................................    10
Applicability to Legislative Branch..............................    10
Section-by-Section Analysis of the Legislation...................    10
Changes in Existing Law Made by the Bill, as Reported............    12
Additional Views.................................................    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 ``American Manufacturing Competitiveness 
Act of 2012''.

SEC. 2. NATIONAL MANUFACTURING COMPETITIVENESS STRATEGY.

  Not later than June 1, 2014, and June 1, 2018, the President shall 
submit to Congress, and publish on a public website, a strategy to 
promote growth, sustainability, and competitiveness in the Nation's 
manufacturing sector, create well-paid, stable jobs, enable innovation 
and investment, and support national security.

SEC. 3. MANUFACTURING COMPETITIVENESS BOARD.

  (a) In General.--On the first day of each of the two Presidential 
terms following the date of enactment of this Act, there is established 
within the Department of Commerce an American Manufacturing 
Competitiveness Board.
  (b) Members.--Members of the Board shall be appointed as follows:
          (1) Public sector members.--The President shall appoint to 
        the Board--
                  (A) the Secretary of Commerce;
                  (B) Governors of two States, from different political 
                parties, after consulting with the National Governors 
                Association; and
                  (C) two other members who are current or former 
                officials of the executive branch of government.
          (2) Private sector members.--
                  (A) Criteria.--Ten individuals from the private 
                sector shall be appointed to the Board in accordance 
                with subparagraph (B) from among individuals with 
                experience in the areas of--
                          (i) managing manufacturing companies, 
                        including businesses with fewer than 100 
                        employees;
                          (ii) managing supply chain providers;
                          (iii) managing labor organizations;
                          (iv) workforce development;
                          (v) finance;
                          (vi) analyzing manufacturing policy and 
                        competitiveness;
                          (vii) conducting manufacturing-related 
                        research and development; and
                          (viii) the defense industrial base.
                  (B) Appointment.--The Speaker of the House of 
                Representatives and the majority leader of the Senate 
                shall each appoint 3 members to the Board. The minority 
                leader of the House of Representatives and the minority 
                leader of the Senate shall each appoint 2 members to 
                the Board.
  (c) Termination.--The Board shall terminate 60 days after submitting 
its final report pursuant to section 4(c)(3).
  (d) Co-chairmen.--The co-chairmen of the Board shall be the Secretary 
of Commerce (or the designee of the Secretary) and a member elected by 
the private sector members of the Board appointed pursuant to 
subsection (b)(2).
  (e) Subgroups.--The Board may convene subgroups to address particular 
industries, policy topics, or other matters and to take advantage of 
the expertise of other individuals and entities in matters to be 
addressed by the Board. Such subgroups may include members representing 
any of the following:
          (1) Other Federal agencies, as the co-chairmen determine 
        appropriate.
          (2) State, tribal, and local governments.
          (3) The private sector.
  (f) Quorum.--Ten members of the Board shall constitute a quorum for 
the transaction of business but a lesser number may hold hearings with 
the agreement of the co-chairmen.
  (g) Meetings and Hearings.--
          (1) Timing and frequency of meetings.--The Board shall meet 
        at the call of the co-chairmen, and not fewer than 2 times.
          (2) Public hearings required.--The Board shall convene public 
        hearings to solicit views on the Nation's manufacturing sector 
        and recommendations for the national manufacturing 
        competitiveness strategy.
          (3) Locations of public hearings.--The locations of public 
        hearings convened under paragraph (2) shall ensure the 
        inclusion of multiple regions and industries of the 
        manufacturing sector.
  (h) 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 Board, including any subgroups established 
pursuant to subsection (e).

SEC. 4. DUTIES OF THE BOARD.

  (a) In General.--The Board shall--
          (1) advise the President on issues affecting the Nation's 
        manufacturing sector;
          (2) conduct a comprehensive analysis in accordance with 
        subsection (b); and
          (3) develop a national manufacturing competitiveness strategy 
        in accordance with subsection (c).
  (b) Comprehensive Analysis.--In developing a national manufacturing 
competitiveness strategy under subsection (c), the Board shall conduct 
a comprehensive analysis of the Nation's manufacturing sector, taking 
into consideration analyses, data, and other information previously 
compiled, as well as relevant reports, plans, or recommendations issued 
by Federal agencies, Federal advisory boards, and the private sector. 
Such analysis shall, to the extent feasible, address--
          (1) the value and role 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 subsector identified 
        by the Board as warranting special study for competitiveness or 
        for comparison purposes;
          (3) Federal, State, tribal, and local policies, programs, and 
        conditions that affect manufacturing;
          (4) a summary of the manufacturing policies and strategies of 
        the Nation's 10 largest trading partners, to the extent known;
          (5) new, emerging, or evolving markets, technologies, and 
        products for which the Nation's manufacturers could compete;
          (6) the identification of redundant or ineffective government 
        programs related to manufacturing, as well as any programs that 
        have improved manufacturing competitiveness;
          (7) 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;
          (8) the manner in which Federal agencies share information 
        and views with respect to the effects of proposed or active 
        regulations or other executive actions on the Nation's 
        manufacturing sector and its workforce;
          (9) the recommendations of the Department of Commerce 
        Manufacturing Council, whether such recommendations have been 
        implemented, and the effect of such recommendations; and
          (10) any other matters affecting the growth, stability, and 
        sustainability of the Nation's manufacturing sector or the 
        competitiveness of the Nation's manufacturing environment, 
        particularly relative to that of other nations, including--
                  (A) workforce skills, gaps, and development;
                  (B) productivity and the extent to which national 
                economic statistics related to manufacturing accurately 
                measure manufacturing output and productivity growth;
                  (C) trade policy and balance;
                  (D) energy policy, forecasts, and developments;
                  (E) expenditures on basic and applied research 
                related to manufacturing technology;
                  (F) programs to help small and mid-sized 
                manufacturers become more competitive;
                  (G) the impact of Federal statutes and regulations;
                  (H) the impact of domestic and international monetary 
                policy;
                  (I) the impact of taxation;
                  (J) financing and investment, including challenges 
                associated with commercialization and scaling up of 
                production;
                  (K) research and development;
                  (L) job creation and employment disparities;
                  (M) levels of domestic production;
                  (N) adequacy of the industrial base for maintaining 
                national security;
                  (O) protections for intellectual property and the 
                related policies, procedures, and law on technology 
                transfer; and
                  (P) customs enforcement and counterfeiting.
  (c) National Manufacturing Competitiveness Strategy.--
          (1) Development.--The Board shall develop a national 
        manufacturing competitiveness strategy, based on--
                  (A) the results of the comprehensive analysis 
                conducted under subsection (b); and
                  (B) any other information, studies, or perspectives 
                that the Board determines to be appropriate.
          (2) Goals and recommendations.--
                  (A) Goals.--The Board shall include in the national 
                manufacturing competitiveness strategy short- and long-
                term goals for improving the competitiveness conditions 
                of the Nation's manufacturing environment, taking into 
                account the matters addressed in the comprehensive 
                analysis conducted under subsection (b).
                  (B) Recommendations.--The Board shall include in the 
                national manufacturing competitiveness strategy 
                recommendations for achieving the goals provided under 
                subparagraph (A). Such recommendations may propose--
                          (i) actions to improve manufacturing 
                        competitiveness to be taken by the President, 
                        Congress, State and local governments, and the 
                        private sector;
                          (ii) actions to improve government policies 
                        and coordination among entities developing such 
                        policies;
                          (iii) the consolidation or elimination of 
                        government programs;
                          (iv) actions to improve government 
                        interaction with the manufacturing sector and 
                        communication regarding the effects of proposed 
                        or active government regulations or other 
                        executive actions on the manufacturing sector 
                        and its workforce;
                          (v) the reform or elimination of regulations 
                        that place the United States manufacturing 
                        sector at a disadvantage relative to other 
                        nations; and
                          (vi) actions to reduce business uncertainty, 
                        including, where appropriate, finalization of 
                        regulations applicable to manufacturers.
          (3) Report.--
                  (A) Draft.--Not later than 150 days before the date 
                on which the President is required to submit to 
                Congress a report containing a national manufacturing 
                competitiveness strategy under section 2, the Board 
                shall publish in the Federal Register and on a public 
                website a draft report containing a national 
                manufacturing competitiveness strategy. At the same 
                time, the Board shall make available to the public the 
                comprehensive analysis required by subsection (b) and 
                any underlying data or materials necessary to an 
                understanding of the conclusions reached.
                  (B) Public comment; review and revision.--A draft 
                report published under subparagraph (A) shall remain 
                available for public comment for a period of not less 
                than 30 days from the date of publication. The 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 60 days before the 
                date on which the President is required to submit to 
                Congress a report containing a national manufacturing 
                competitiveness strategy under section 2, the Board 
                shall submit to the President for review and revision a 
                final report containing a national manufacturing 
                competitiveness strategy, and shall publish such final 
                report on a public website.
                  (D) Contents of report.--The final report submitted 
                under subparagraph (C) shall, to the extent feasible, 
                include--
                          (i) an estimate of the short- and long-term 
                        Federal Government outlays and revenue changes 
                        necessary to implement the national 
                        manufacturing competitiveness strategy and an 
                        estimate of savings that may be derived from 
                        implementation of the national manufacturing 
                        competitiveness strategy;
                          (ii) a detailed explanation of the methods 
                        and analysis used to determine the estimates 
                        included under clause (i);
                          (iii) recommendations regarding how to pay 
                        for the cost of implementation estimated under 
                        clause (i); and
                          (iv) a plan for how the recommendations 
                        included in the report will be implemented and 
                        who is or should be responsible for the 
                        implementation.
  (d) Consultation; Nonduplication of Efforts.--The Board shall consult 
with and not duplicate the efforts of the Defense Science Board, the 
President's Council of Advisors on Science and Technology, the 
Manufacturing Council established by the Department of Commerce, the 
Economic Security Commission, the Labor Advisory Committee for Trade 
Negotiations and Trade Policy, and other relevant governmental entities 
conducting any activities related to manufacturing.

SEC. 5. REQUIREMENT TO CONSIDER NATIONAL MANUFACTURING COMPETITIVENESS 
                    STRATEGY IN BUDGET.

  In preparing the budget for each of the fiscal years from fiscal year 
2016 through fiscal year 2022 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 the national manufacturing competitiveness strategy.

SEC. 6. DEFINITIONS.

  In this Act:
          (1) Board.--The term ``Board'' means--
                  (A) during the first Presidential term that begins 
                after the date of enactment of this Act, the American 
                Manufacturing Competitiveness Board established by 
                section 3(a) on the first day of such term; and
                  (B) during the second Presidential term that begins 
                after the date of enactment of this Act, the American 
                Manufacturing Competitiveness Board established by 
                section 3(a) on the first day of such term.
          (2) Private sector.--The term ``private sector'' includes 
        labor, industry, industry associations, academia, universities, 
        trade associations, nonprofit organizations, and other 
        appropriate nongovernmental groups.
          (3) State.--The term ``State'' means each State of the United 
        States, the District of Columbia, and each commonwealth, 
        territory, or possession of the United States.

                          PURPOSE AND SUMMARY

    The purpose of H.R. 5865 is to require development of a 
manufacturing strategy that provides recommendations to 
Congress on ways to improve the competitiveness of the U.S. 
manufacturing environment. Policies that benefit the 
environment for the manufacturing sector also are likely to 
benefit other sectors of the economy and result in greater 
benefits to the economy as a whole. H.R. 5865, the ``American 
Manufacturing Competitiveness Act of 2012,'' was introduced by 
Rep. Daniel Lipinski (D-IL) and Rep. Adam Kinzinger (R-IL) to 
require the development of a National Manufacturing Strategy 
report in each of the two Presidential terms following the date 
of enactment.
    The Act provides for a 15 member American Manufacturing 
Competitiveness Board comprised of 5 public and 10 private 
sector members. The Board's duties are to conduct a 
comprehensive analysis of the manufacturing sector and to 
develop a manufacturing strategy to be delivered to the 
President.
    The President will have an opportunity to review and revise 
each report before sending it to Congress no later than June 1, 
2014, and June 1, 2018. The President also must describe in the 
annual Budget how the Budget is consistent with the goals and 
recommendations of the national manufacturing strategy for 
fiscal years 2016 through fiscal year 2022.

                  BACKGROUND AND NEED FOR LEGISLATION

    Manufacturing is a vital part of the United States economy. 
The U.S. manufacturing sector currently employs nearly 12 
million people,\1\ with manufacturing of durable goods 
contributing the largest portion of GDP growth for 2011.\2\ 
Manufacturers contributed $1.8 trillion to the U.S. economy in 
2010,\3\ and provided almost 60 percent of all U.S. exports.\4\
---------------------------------------------------------------------------
    \1\Bureau of Labor Statistics, The Employment Situation--May 2012 
(online at http://www.bls.gov/news.release/pdf/empsit.pdf) (accessed 
June 16, 2012).
    \2\ABureau of Economic Analysis, Annual Industry Accounts: Advance 
Statistics on GDP by Industry for 2011 (online at http://www.bea.gov/
scb/pdf/2012/05%20May/0512.
    \10\Michael E. Porter and Jan W. Rivkin, Harvard Business School, 
Prosperity at Risk, Findings of Harvard Business School's Survey on 
U.S. Competitiveness (January 2012) .
---------------------------------------------------------------------------
    Manufacturing supports not only the U.S. economy, but also 
the Nation's security. As domestic manufacturing declines and 
defense contractors choose to relocate to other countries, the 
United States ``depends on other nations, who are not 
necessarily our friends, for strategic materials and 
technology.''\11\
---------------------------------------------------------------------------
    \11\National Defense Industrial Association, Manufacturing 
Division, Maintaining a Viable Defense Industrial Base (Aug. 1, 2008).
---------------------------------------------------------------------------
    There are significant economic benefits to a strong 
manufacturing sector. Sixty percent of our exports are 
manufactured goods and maintaining or increasing that number 
requires an environment conducive to manufacturing. Finding 
useful and workable solutions to the problems facing U.S. 
manufacturing requires a coordinated effort by the government 
and the private sector. There are numerous studies, reports, 
and recommendations on improving manufacturing, or specific 
sectors of manufacturing, that have been developed by 
government and non-government entities. For example, the 
Department of Commerce developed a manufacturing strategy 
report in 2004 and is currently updating that work. What is 
needed now is to pull these disparate strands together into a 
coherent plan for legislative action. Crafting a national 
manufacturing strategy may help enable the United States to 
remain competitive by unifying efforts among and across 
agencies to support policies conducive to domestic growth in 
manufacturing.

                                HEARINGS

    The Subcommittee on Commerce, Manufacturing and Trade held 
a hearing on June 1, 2012. The Subcommittee received testimony 
from the Honorable Daniel Lipinski, Member of Congress; Mr. 
Zachary Mottl, Atlas Tool & Die Works; Mr. Mark Gordon, 
National Defense Industry Association; Mr. Phillip Singerman, 
Ph.D, National Institute of Standards and Technology, U.S. 
Department of Commerce; and Ms. Deborah Wince-Smith, Council on 
Competitiveness.

                        COMMITTEE CONSIDERATION

    On June 7, 2012, the Subcommittee on Commerce, 
Manufacturing, and Trade met in open markup session and 
approved H.R. 5865 for full Committee consideration, as 
amended, by a voice vote. On June 19 and 20, 2012, the 
Committee on Energy and Commerce met in open markup session and 
ordered H.R. 5865 reported, as amended, by a voice vote.

                            COMMITTEE VOTES

    There were no recorded votes taken in connection with 
ordering H.R. 5865 reported. A motion by Mr. Whitfield to order 
H.R. 5865 reported to the House, as amended, was agreed to by a 
voice vote.

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative and 
oversight hearing and made findings that are reflected in this 
report.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    The goal of H.R. 5865 is to develop a manufacturing 
strategy that provides recommendations to Congress on ways to 
improve the competitiveness of the U.S. manufacturing 
environment.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5865, the ``American Manufacturing Competitiveness Act of 
2012,'' would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

              EARMARKS, TAX BENEFITS, AND TARIFF BENEFITS

    In compliance with clause 9(e), 9(f), and 9(g) of rule XXI, 
the committee finds that H.R. 5852 contains no earmarks, 
limited tax benefits, or limited tariff benefits.

                        COMMITTEE COST ESTIMATE

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                                     June 25, 2012.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5865, the American 
Manufacturing Competitiveness Act of 2012.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5865--American Manufacturing Competitiveness Act of 2012

    Summary: H.R. 5865 would establish the American 
Manufacturing Competitiveness Board within the Department of 
Commerce to advise the President on issues affecting 
manufacturing in the United States. The board would be required 
to perform a comprehensive analysis of the nation's 
manufacturing sector and, using results from the analysis, 
develop a strategy to improve the competitiveness of domestic 
manufacturing efforts. Results from the analysis and strategy 
would be available to the President to comply with the bill's 
requirement to publish a strategy in 2014 and again in 2018 to 
promote growth in the nation's manufacturing sector.
    Based on information from the Department of Commerce, CBO 
estimates that implementing H.R. 5865 would cost about $15 
million over the 2013-2017 period, assuming appropriation of 
the necessary amounts. Enacting H.R. 5865 would not affect 
direct spending or revenues; therefore, pay-as-you-go 
procedures do not apply.
    H.R. 5865 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5865 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2013     2014     2015     2016     2017   2013-2017
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........................        4        3        2        2        5        16
Estimated Outlays.......................................        3        3        3        2        4        15
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the end of 2012, that the necessary 
amounts will be appropriated each year, and that spending will 
follow historical patterns for similar activities.
    H.R. 5865 would establish the 15-member American 
Manufacturing Competitiveness Board to analyze the nation's 
manufacturing sector, and using results from the analysis, set 
short- and long-term goals for improving the sector's 
competitiveness. The board would be appointed at the beginning 
of the next presidential term, terminate after completing its 
first report in 2014, and would be re-established at the 
beginning of the following presidential term in 2017 to update 
the report's findings.
    In preparing the analysis, the board would be required to 
study, among other things:
           The current environment for manufacturing, 
        including government policies--at the international, 
        federal, state, tribal, and local levels--that affect 
        the sector;
           Forecasts, both short- and long-term, for 
        domestic and international trends in manufacturing;
           Actions by federal agencies that affect 
        manufacturing; and
           Factors that affect the growth and stability 
        of the sector such as workforce skills; trade, energy, 
        and monetary policies; research and development; and 
        protections for intellectual property.
    Using results from the analysis, the board would be 
required to develop a strategy to improve the competitiveness 
of the nation's manufacturing sector. The bill would require 
the strategy to include recommendations to eliminate or 
consolidate government programs, improve interaction between 
the government and the manufacturing sector, and amend any 
regulations that put the industry at a competitive disadvantage 
in international markets.
    The final report also would be required to include a plan 
to implement the strategy, including an estimate of the cost to 
implement it as well as recommendations for ways to cover those 
costs.
    Based on information from the Department of Commerce, CBO 
estimates that implementing H.R. 5865 would cost $15 million 
over the 2013-2017 period, assuming appropriation of the 
necessary amounts. This amount includes staff support for board 
activities, data gathering and analysis, and report 
preparation. Though the board would be terminated shortly after 
submitting its final report in 2014, CBO expects that efforts 
would continue within the Department of Commerce to collect 
data and information that would be available to the board when 
it would be re-established in 2017.
    Pay-As-You-Go Considerations: None.
    Intergovernmental and private-sector impact: H.R. 5865 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Susan Willie; Impact 
on State, Local, and Tribal Governments: Elizabeth Cove 
Delisle; Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

    Section 2. Requires two Presidential reports to Congress 
outlining a strategy for promoting growth, sustainability, and 
competitiveness in the manufacturing sector. The reports are 
due June 1, 2014, and June 1, 2018.
    Section 3. Establishes, within the Department of Commerce, 
the American Manufacturing Competitiveness Board on the first 
day of the Presidential term following the date of enactment 
(2013), and then again in the next Presidential term (2017). 
The Board will consist of 15 members, five from the public 
sector (including two Governors) and ten from the private 
sector. The private sector board members must have 
manufacturing-related (including experience with companies with 
less than 100 employees) or other relevant experience. The five 
public appointments are made by the President and must include 
the Secretary of Commerce, while the ten private-sector members 
are appointed by the House and Senate in a 3-2 ratio, majority 
to minority, for each chamber. The Board would be co-chaired by 
the Secretary of Commerce and a member elected by the private-
sector Board members. Each Board terminates 60 days after 
submitting its final report to the President as required by 
Section 4, and therefore will not require any additional work 
to be performed by the Board, the Commerce Department, or its 
staff until the next Board is appointed. The Board may convene 
subgroups to address particular industries, topics, or other 
matters and to take advantage of the expertise of other 
individuals and entities in matters to be addressed by the 
Board. Section 3 establishes the quorum and minimum meeting 
requirements and provides flexibility for the Board to hold 
hearings with less than a quorum pursuant to agreement of the 
co-chairmen.
    Section 4. Establishes the duties of the Board as follows: 
(1) advise the President on manufacturing issues; (2) conduct a 
rigorous analysis of the manufacturing sector; and (3) develop 
a national competitiveness strategy, which will be made 
available for public comment and submitted to the President.
    The Board will conduct a comprehensive analysis on the 
manufacturing sector, taking into consideration previously 
compiled data, analyses, reports, plans or recommendations. The 
Board's analysis will address a number of enumerated factors, 
to the extent feasible. The Committee understands the time and 
resource constraints of the Board and therefore intends they 
rely heavily on the large corpus of research and data already 
completed for topics they determine should be addressed. The 
Board then will develop and publish for public comment a draft 
manufacturing strategy based on its analysis and any other 
information the Board determines is appropriate. The Board also 
must publish its analysis and underlying data used to support 
its conclusions. The competitiveness strategy will include 
short-term and long-term goals for improving the 
competitiveness of the U.S. manufacturing environment, and 
recommendations for action to accomplish the goals. Not later 
than April 1, 2014, and April 1, 2018, each Board must submit 
to the President for review and revision a final report 
containing a national manufacturing strategy and publish it on 
a public website. The President will then send a manufacturing 
strategy to Congress as required by section 2 of the Act.
    To avoid duplication of efforts, the Board must consult 
with a number of specified entities (including the Defense 
Science Board, the President's Council of Advisors on Science 
and Technology, the Manufacturing Council established by the 
Department of Commerce, the Economic Security Commission, and 
the Labor Advisory Committee for Trade Negotiations and Trade 
Policy) and may consult with any other relevant governmental 
body or the private sector. The Committee intends the 
consultation to further reduce potential burdens on the Board 
and its workload.
    Section 5. Requires the President to include in each fiscal 
year's Budget request information regarding the consistency of 
the Budget with the goals and recommendations included in the 
national manufacturing strategy. This requirement begins with 
the fiscal year 2016 Budget and ends with the fiscal year 2022 
Budget.
    Section 6. Defines certain terms, including ``Board'', 
``private sector'', and ``State''.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                            ADDITIONAL VIEWS

    As President Obama said in his 2011 State of the Union 
address, we must out-innovate, out-educate, and out-build our 
competitors.\1\ And for the U.S. to continue to lead in 
innovation, we must maintain a strong manufacturing sector. 
Currently, about 70% of research and development and 90% of 
patents in this country are connected to manufacturing.\2\ As a 
professor at Harvard Business School has explained, we cannot 
maintain a strong economy by doing high-tech research at home 
and allowing manufacturing to continue to move offshore. We 
need ``two-way feedback.''\3\
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    \1\The White House, Remarks by the President in State of Union 
Address (Jan. 25, 2011) (online at www.whitehouse.gov/the-press-office/
2011/01/25/remarks-president-state-union-address).
    \2\Department of Commerce, R&D;, Patents are Key Manufacturing 
Drivers Chief Economist Mark Doms Tells National Association for 
Business Economics 2012 Conference (May 31, 2012) (online at 
www.commerce.gov/blog/2012/05/31/rd-patents-are-key-manufacturing-
drivers-chief-economist-mark-doms-tells-national-as).
    \3\Gary P. Pisano, The U.S. Is Outsourcing Away Its Competitive 
Edge (Oct. 1, 2009) (online at blogs.hbr.org/hbr/restoring-american-
competitiveness/2009/10/the-us-is-outsourcing-away-its.html).
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    Our goal is to have good jobs across all segments of the 
economy, but manufacturing jobs in particular have contributed 
to maintaining a strong middle class. These jobs have good pay 
and tend to be stable. In addition, manufacturing brings with 
it strong spillover benefits for regional and local economies. 
Once there is a manufacturer in town, suppliers move in, along 
with restaurants, retailers, and service providers.
    Manufacturing also has been a vital part of the economic 
recovery from the Great Recession, with the manufacturing 
sector having expanded for 34 consecutive months through May 
2012.\4\
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    \4\Institute for Supply Management, May 2012 Manufacturing ISM 
Report on Business (June 1, 2012) (online at www.ism.ws/news/
NewsReleaseDetail.cfm?ItemNumber=22681).
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    The Obama Administration rightly has put an intense focus 
on revitalizing and growing the manufacturing sector and has 
launched a number of initiatives to do this.
    H.R. 5865 will help the federal government continue its 
current focus on manufacturing. H.R. 5865 ensures there are 
federal policies that promote the competitiveness of U.S. 
manufacturing and do so in an organized and strategic manner. 
This bill reflects a desire to see manufacturing jobs and our 
entire economy to continue to grow.
    While sources cited in the majority views may disagree, the 
goal of this bill is not to attack important health and safety 
regulatory achievements or the civil justice system.

                                   Henry A. Waxman
                                   G. K. Butterfield.