H. Rept. 116-539 - AMERICAN COMPETITIVENESS OF A MORE PRODUCTIVE EMERGING TECH ECONOMY ACT116th Congress (2019-2020)
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116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-539
======================================================================
AMERICAN COMPETITIVENESS OF A MORE PRODUCTIVE EMERGING TECH ECONOMY ACT
_______
September 29, 2020.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Pallone, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 8132]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 8132) to require the Federal Trade Commission
and the Secretary of Commerce to conduct studies and submit
reports on the impact of artificial intelligence and other
technologies on United States businesses conducting interstate
commerce, and for other purposes, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and Need for the Legislation..........................2
III. Committee Hearings...............................................3
IV. Committee Consideration..........................................6
V. Committee Votes..................................................6
VI. Oversight Findings...............................................6
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures6
VIII.Federal Mandates Statement.......................................7
IX. Statement of General Performance Goals and Objectives............7
X. Duplication of Federal Programs..................................7
XI. Committee Cost Estimate..........................................7
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits......7
XIII.Advisory Committee Statement.....................................7
XIV. Applicability to Legislative Branch..............................7
XV. Section-by-Section Analysis of the Legislation...................7
XVI. Changes in Existing Law Made By the Bill, As Reported............9
I. PURPOSE AND SUMMARY
H.R. 8132, the ``American Competitiveness Of a More
Productive Emerging Tech Economy Act'' or the ``American
COMPETE Act'', was introduced on August 28, 2020, by
Representatives Cathy McMorris Rodgers (R-WA), Bobby L. Rush
(D-IL), Greg Walden (R-OR), Darren Soto (D-FL), Richard Hudson
(R-NC), Robin Kelly (D-IL), Robert E. Latta (R-OH), Michael C.
Burgess (R-TX), Fred Upton (R-MI), Brett Guthrie (R-KY), Larry
Bucshon (R-IN), Greg Gianforte (R-MT), H. Morgan Griffith (R-
VA), and Earl L. ``Buddy'' Carter (R-GA). H.R. 8132 aims to
ensure America leads the world and outpaces the People's
Republic of China in charting the future of emerging
technologies. Specifically, H.R. 8132 directs the Department of
Commerce (DOC) and the Federal Trade Commission (FTC) to study
and report to Congress on the state of artificial intelligence
(AI), quantum computing, blockchain, and new and advanced
materials. The bill also requires the DOC to study and report
to Congress on the state of the Internet of Things (IOT), IOT
manufacturing, three-dimensional printing, and unmanned
delivery services and directs the FTC to study how AI may be
used to address online harms.
II. BACKGROUND AND NEED FOR THE LEGISLATION
Maintaining U.S. leadership in emerging technologies is
essential for American growth, security, and competitiveness in
the 21st century. To ensure American leadership and to outpace
the People's Republic of China, who has a stated goal of
surpassing the U.S. with its ``Made in China 2025'' initiative,
the U.S. must make it a priority to lead on critical
technologies, such as AI.\1\
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\1\Council on Foreign Relations, Is `Made in China 2025' a Threat
to Global Trade? (May 13, 2019) (www.cfr.org/backgrounder/made-china-
2025-threat-global-trade).
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Although the U.S. is the current leader in AI, such
leadership is not guaranteed. In fact, if current growth trends
continue, some experts expect China to overtake the U.S. in
just five to ten years.\2\ Eric Schmidt, Chairman of the
National Security Commission on Artificial Intelligence
(NSCAI), recently warned, ``Americans should be wary of living
in a world shaped by China's view of the relationship between
technology and authoritarian governance. Free societies must
prove the resilience of liberal democracy in the face of
technological changes that threaten it.''\3\ The U.S. cannot
afford to cede global leadership on AI.
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\2\The Arms Race: A Groundbreaking New Index Ranking 54 Countries,
Tortoise Media (Dec. 3, 2019) (members.tortoisemedia.com/2019/12/03/
global-ai-index/content.html).
\3\Eric Schmidt, Eric Schmidt: I Used to Run Google. Silicon Valley
Could Lose to China, New York Times (Feb. 27, 2020) (www.nytimes.com/
2020/02/27/opinion/eric-schmidt-ai-china.html).
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Additionally, American leadership is also important in
other emerging technologies such as IOT, unmanned delivery
services, quantum computing, three-dimensional printing, new
and advanced materials, and blockchain. H.R. 8132, the American
Competitiveness on More Productive Emerging Tech Economy, or
the American COMPETE Act, aims to ensure American leadership on
these technologies by compiling critical information about
Federal efforts on these technologies as well as private
industry development, integration, and deployment of such
technologies.
H.R. 8132 also directs DOC and the FTC to provide
recommendations to grow the U.S. economy through the secure
advancement of these technologies, to develop national
strategies to advance the U.S. global position on these
technologies, develop strategies to mitigate current and
emerging risks to the marketplace and supply chains of these
technologies, as well as ways to incentivize expeditious
adoption and refinement of such technologies.
Through the various hearings and meetings with stakeholders
on these issues, it is clear that such a compendium of
information created by H.R. 8132 will advance the development
and deployment of these technologies.
III. COMMITTEE HEARINGS
For the purposes of section 103(i) of H. Res. 6 of the
116th Congress, the following hearings were used to develop or
consider H.R. 8132:
In the 114th Congress, the Subcommittee on Commerce,
Manufacturing, and Trade held an informational hearing on March
24, 2015. The hearing was entitled, ``The Internet of Things:
Exploring the Next Technology Frontier.'' The Subcommittee
received testimony from the following witnesses:
Daniel Castro, Vice President, Information
Technology and Innovation Foundation
Brian Van Harlingen, Chief Technology
Officer, Belkin International, Inc.
Rose Schooler, Vice President, Internet of
Things Group and GM, IoT Strategy and Technology
Office, Intel Corporation
Brad Morehead, Chief Executive Officer,
LiveWatch Security, LLC
In the 114th Congress, the Subcommittee on Commerce,
Manufacturing, and Trade held an informational hearing on
November 19, 2015. The hearing was entitled, ``The Disrupter
Series: The Fast-Evolving Uses and Economic Impacts of
Drones.'' The Subcommittee received testimony from the
following witnesses:
Joshua M. Walden, Senior Vice President &
General Manager, New Technology Group, Intel
Corporation
John Villasenor, Professor of Public Policy
and Electrical Engineering, University of California,
Los Angeles, Luskin School of Public Affairs
Brian Wynne, President and CEO, Association
for Unmanned Vehicle Systems International (AUVSI)
Margot Kaminski, Assistant Professor, Moritz
School of Law, Ohio State University
In the 114th Congress, the Subcommittee on Commerce,
Manufacturing, and Trade held an informational hearing on
February 26, 2016. The hearing was entitled, ``The Disrupter
Series: 3D Printing.'' The Subcommittee received testimony from
the following witnesses:
Alan Amling, Vice President, Global
Logistics & Marketing, United Parcel Service, Inc.
Dr. Edward Herderick, Additive Technologies
Leader, GE Corporate Supply Chain and Operations
Neal Orringer, Vice President, Alliances &
Partnerships, 3D Systems Corp.
Ed Morris, Vice President and Director,
America Makes, the National Additive Manufacturing
Innovation Institute National Center for Defense
Manufacturing and Machining (NCDMM)
In the 114th Congress, the Subcommittee on Commerce,
Manufacturing, and Trade held an informational hearing on March
16, 2016. The hearing was entitled, ``The Disrupter Series:
Digital Currency and Blockchain Technology.'' The Subcommittee
received testimony from the following witnesses:
John A. Beccia III, General Counsel and
Chief Compliance Officer, Circle Internet Financial on
behalf of the Electronic Transactions Association
Jerry Brito, Executive Director, Coin Center
Jerry Cuomo, Vice President Blockchain
Technologies, IBM
Matthew Roszak, Chairman, Chamber of Digital
Commerce, and Co-Founder, Bloq. Inc.
Paul Snow, Chief Architect, Factom
Juan Suarez, Counsel, Coinbase
Dana Syracuse, Counsel, BuckleySandler LLP
In the 114th Congress, the Subcommittee on Commerce,
Manufacturing, and Trade Subcommittee held an informational
hearing on September 14, 2016. The hearing was entitled, ``The
Disrupter Series: Advanced Robotics.'' The Subcommittee
received testimony from the following witnesses:
Jeff Burnstein, President, Robotic
Industries Association
Meg Jones, Ph.D., Assistant Professor,
Communication, Culture, and Technology, Georgetown
University
Dean Kamen, Founder, Deka Research
Sridhar Kota, Ph.D., Herrick Professor of
Engineering, University of Michigan
In the 115th Congress, the Subcommittee on Digital Commerce
and Consumer Protection held an informational hearing on March
15, 2017. The hearing was entitled, ``Disrupter Series:
Advanced Materials and Production.'' The Subcommittee received
testimony from the following witnesses:
James M. Tour, Ph.D., T.T. and W.F. Chao
Professor of Chemistry, Professor of Computer Science,
and Professor of Materials Science and NanoEngineering,
Smalley Institute for Nanoscale Science & Technology,
Rice University
Keith Murphy, Chairman and Chief Executive
Officer, Organovo Holdings, Inc.
Shane Weyant, Chief Executive Officer and
President, Creative Pultrusions, Inc.
Hota GangaRao, Ph.D., Maurice A. and Jo Ann
Wadsworth Distinguished Professor of CEE, CEMR,
Director, Constructed Facilities Center, Director,
Center for Integration of Composites into
Infrastructure, West Virginia University
Afsaneh Rabiei, Ph.D., Professor, Department
of Mechanical and Aerospace Engineering, North Carolina
State University
In the 115th Congress, the Subcommittee on Digital Commerce
and Consumer Protection held an informational hearing on May
23, 2017. The hearing was entitled, ``Disrupter Series:
Delivering to Consumers.'' The Subcommittee received testimony
from the following witnesses:
Brian Wynne, President and CEO, Association
for Unmanned Vehicle Systems International (AUVSI)
Bastian Lehmann, Founder and CEO, Postmates
Shyam Chidamber, Chief Evangelist and Senior
Advisory, Flirtey
Harry J. Holzer, Ph.D., Jo John LaFarge Jr.
S.J. Professor of Public Policy, McCourt School of
Public Policy, Georgetown University
In the 115th Congress, the Subcommittee on Digital Commerce
and Consumer Protection held an informational hearing on June
13, 2017. The hearing was entitled, ``Disrupter Series: Update
on IOT Opportunities and Challenges.'' The Subcommittee
received testimony from the following witnesses:
William S. Marras, Ph.D., Executive Director
and Scientific Director of the Spine Research
Institute, The Ohio State University
Gary D. Butler, Ph.D., Founder, Chairman and
CEO, Camgian Microsystems Corporation
Mark Bachman, Ph.D., CTO and Co-Founder,
Integra Devices
Peter B. Kosak, Executive Director, Urban
Active Solutions, General Motors North America
Cameron Javdani, Director of Sales and
Marketing, Louroe Electronics; and
Bill Kuhns, President, Vermont Energy
Control Systems, LLC
In the 115th Congress, the Subcommittee on Digital Commerce
and Consumer Protection held an informational hearing on
January 18, 2018. The hearing was entitled, ``Disrupter Series:
The Internet of Things, Manufacturing and Innovation.'' The
Subcommittee received testimony from the following witnesses:
Rodney Masney, Vice President, Technology
Service Delivery, Information Technology, Owens-
Illinois
Sanjay Poonen, Chief Operating Officer,
VMWare
Thomas D. Bianculli, Chief Technology
Officer, Zebra Technology
Thomas R. Kurfess, Ph.D., P.E., Professor
and HUSCO/Ramirez Distinguished Chair in Fluid Power
and Motion Control, George W. Woodruff School of
Mechanical Engineering, Georgia Institute of Technology
In the 115th Congress, the Subcommittee on Digital Commerce
and Consumer Protection held an informational hearing on May
18, 2018. The hearing was entitled, ``Disrupter Series: Quantum
Computing.'' The Subcommittee received testimony from the
following witnesses:
Michael Brett, CEO, QxBranch
Christopher Monroe, Chief Scientist and
Founder, IonQ, Inc. and Professor of Physics,
University of Maryland
Matthew Putman, CEO, Nanotronics. Inc.
Diana Franklin, Director of Computer Science
Education, the University of Chicago
In the 115th Congress, the Subcommittee on Digital Commerce
and Consumer Protection held a legislative hearing on May 22,
2018. The hearing was entitled, ``Internet of Things
Legislation.'' The Subcommittee received testimony from the
following witnesses:
Tim Day, Senior Vice President, Chamber
Technology Engagement Center, U.S. Chamber of Commerce
Dipti Vachani, Vice President Internet of
Things Group and General Manager of the Strategy and
Solutions Engineering Division, Intel
Michelle Richardson, Deputy Director,
Freedom, Security, and Technology Project, Center for
Democracy and Technology
IV. COMMITTEE CONSIDERATION
Representatives Rodgers (R-WA), Rush (D-IL), Walden (R-OR),
Soto (D-FL), Hudson (R-NC), Kelly (D-IL), Latta (R-OH), Burgess
(R-TX), Upton (R-MI), Guthrie (R-KY), Bucshon (R-IN), Gianforte
(R-MT), Griffith (R-VA), and Carter (R-GA) introduced H.R.
8132, the ``American Competitiveness Of a More Productive
Emerging Tech Economy Act'' or the ``American COMPETE Act'', on
August 28, 2020, and the bill was referred to the Committee on
Energy and Commerce. The bill was referred to the Subcommittee
on Consumer Protection and Commerce on August 31, 2020.
On September 9, 2020, the bill was discharged from the
Subcommittee on Consumer Protection and Commerce as the bill
was called up for markup and consideration by the full
Committee. The Committee on Energy and Commerce met in open
markup session, pursuant to notice, on September 9, 2020, to
consider H.R. 8132. No amendments were offered during
consideration of the bill. Mr. Pallone, Chairman of the
committee, subsequently moved that H.R. 8132 be ordered
reported favorably to the House, without amendment, and the
Committee on Energy and Commerce agreed to the motion by a
voice vote, a quorum being present.
V. 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. The
Committee advises that there were no record votes taken on H.R.
8132, including the motion for final passage of the bill.
VI. OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the
oversight findings and recommendations of the Committee are
reflected in the descriptive portion of the report.
VII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
Pursuant to 3(c)(2) of rule XIII of the Rules of the House
of Representatives, the Committee adopts as its own the
estimate of new budget authority, entitlement authority, or tax
expenditures or revenues contained in the cost estimate
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974.
The Committee has requested but not received from the
Director of the Congressional Budget Office a statement as to
whether this bill contains any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
VIII. 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.
IX. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to conduct
studies and submit reports on the impact of AI and other
technologies on United States businesses conducting interstate
commerce.
X. DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 8132 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111--139 or the
most recent Catalog of Federal Domestic Assistance.
XI. COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, 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.
XII. EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 8132 contains no earmarks, limited
tax benefits, or limited tariff benefits.
XIII. ADVISORY COMMITTEE STATEMENT
No advisory committee within the meaning of section 5(b) of
the Federal Advisory Committee Act was created by this
legislation.
XIV. 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.
XV. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. The ``American Competitiveness of a More Productive Emerging
Tech Economy Act'' or the ``American Compete Act''
Section 1(a) designates that the short title may be cited
as the ``American Competitiveness Of a More Productive Emerging
Tech Economy Act'' or the ``American COMPETE Act''. Section
1(b) provides the table of contents.
Sec. 2. Study to advance artificial intelligence
This Section requires a report not later than one year
after the date of enactment of this Act. The Secretary of
Commerce and the Federal Trade Commission (FTC) shall complete
a study on the state of the AI industry and the impact of such
industry on the economy of the United States.
Sec. 3. Study to advance internet of things in manufacturing
This Section requires a report not later than one year
after the date of enactment of this Act. The Secretary of
Commerce, in coordination with the head of any other
appropriate Federal agency, shall complete a study on the state
of manufacturing in the United States.
Sec. 4. Study to advance quantum computing
This Section requires a report not later than one year
after the date of enactment of this Act. The Secretary of
Commerce and the FTC shall complete a study on the state of the
quantum computing industry and the impact of such industry on
the economy of the United States.
Sec. 5. Study to advance blockchain technology
This Section requires a report not later than one year
after the date of enactment of this Act. The Secretary of
Commerce and the FTC shall complete a study on the state of the
blockchain technology industry and the impact of such industry
on the economy of the United States.
Sec. 6. Study to advance new and advanced materials
This Section requires a report not later than one year
after the date of enactment of this Act. The Secretary of
Commerce and the FTC, in coordination with the head of any
other appropriate Federal agency, shall complete a study on the
state of new and advanced materials industry, including
synthetically derived or enhanced natural properties, and the
impact of such industry on the economy of the United States.
Sec. 7. Study to advance unmanned delivery services
This Section requires a report not later than one year
after the date of enactment of this Act. The Secretary of
Commerce, in coordination with the head of any other
appropriate Federal agency, shall complete a study on the
impact of unmanned delivery services on United States'
businesses conducting interstate commerce, including the
effects on safety, traffic congestion and mitigation, and job
gains, losses, or changes. In the report recommendations, the
Committee expects the Secretary of Commerce to include
strategies to promote public safety and mitigate the effects of
job displacement related to the development and adoption of
unmanned delivery services.
Sec. 8. Study to advance internet of things
This Section requires a report not later than one year
after the date of enactment of this Act. The Secretary of
Commerce shall conduct a study on the state of the internet-
connected devices industry (commonly known as the ``Internet of
Things''') in the United States.
Sec. 9. Study to advance three dimensional printing
This Section requires a report later than one year after
the date of enactment of this Act. The Secretary of Commerce,
in coordination with the head of any other appropriate Federal
agency, shall complete a study on the state of the three-
dimensional printing industry and the impact of such industry
on the economy of the United States.
Sec. 10. Study to combat online harms through innovation
This section requires a report not later than one year
after the date of enactment of this Act. The FTC shall conduct
and complete a study on how AI may be used to address the
online harms described in this section, including scams
directed at senior citizens, disinformation or exploitative
content, and content furthering illegal activity.
XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
There are no changes to existing law made by the bill H.R.
8132.