II 112th CONGRESS 1st Session S. 1457 IN THE SENATE OF THE UNITED STATES August 1, 2011 Mrs. Gillibrand (for herself, Ms. Stabenow, and Mr. Whitehouse) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To direct the Secretary of Commerce to establish a Made In America Block Grant Program, and for other purposes.

1.

Short title

This Act may be cited as the Made In America Block Grant Program Act of 2011.

2.

Establishment of Made In America Block Grant Program

(a)

In general

Not later than 120 days after the date of the enactment of this Act, the Secretary of Commerce shall establish a Made In America Block Grant Program (in this Act referred to as the program), under which the Secretary may make grants to support the manufacturing industry in the United States. (b)

Hollings Manufacturing Partnership Program

To the degree practicable, the Secretary shall carry out the program through the Hollings Manufacturing Partnership Program.

3.

Grants

(a)

Grant uses

A grant made by the Secretary of Commerce under the program shall be used by the recipient of the grant to assist, through grants made to third parties, any of the following activities: (1)Retooling or retrofitting a small- or medium-sized manufacturer, including with respect to equipment, facilities, infrastructure, or capital. (2)Diversifying the business plan of a small- or medium-sized manufacturer to advance the production of clean energy technology products or components, energy efficient products or components, high-technology products or components, or other advanced products (as defined by the Secretary). (3)Improving the energy or process efficiency of a manufacturing facility of a small- or medium-sized manufacturer. (4)Retraining the employees of a small- or medium-sized manufacturer to— (A)provide skills necessary to operate new or advanced manufacturing equipment; or (B)sustain or improve the processes of that manufacturer. (5)Training new employees of a small- or medium-sized manufacturer, including through on-the-job training. (6)Providing capital and technical expertise to a small- or medium-sized manufacturer to expand the export opportunities of that manufacturer. (7)Establishing a revolving loan fund to provide loans to small- or medium-sized manufacturers to finance the costs of activities described in paragraphs (1) through (6). (8)Such other projects as the Secretary considers appropriate to support the manufacturing industry of the United States. (b)

Eligible entities

(1)

In general

The following entities are eligible to receive a grant under the program: (A)A State meeting the requirements of paragraph (2). (B)A covered unit of local government meeting the requirements of paragraph (2). (C)An Indian tribe meeting the requirements of paragraph (2). (D)A State, unit of local government, Indian tribe, or consortium of such entities without regard to whether the requirements of paragraph (2) are met. (2)

Unemployment

An entity meets the requirements of this paragraph if— (A)the entity experienced a seasonally adjusted unemployment rate of at least 10 percent for any 6 consecutive months during the period beginning on January 1, 2007, and ending on December 31, 2010 (as determined by the Secretary of Commerce in consultation with the Secretary of Labor); or (B)the entity experienced a cumulative decline in employment in the manufacturing sector greater than or equal to 15 percent during the period beginning on January 1, 2007, and ending on December 31, 2010 (as determined by the Secretary of Commerce in consultation with the Secretary of Labor). (c)

Allocation of grant funds

In making grants each fiscal year, the Secretary may— (1)use not more than 48 percent of the amounts made available for grants under the program that fiscal year to make grants to entities described in subsection (b)(1)(A); (2)use not more than 48 percent of the amounts made available for grants under the program that fiscal year to make grants to entities described in subsection (b)(1)(B); (3)use not more than 2 percent of the amounts made available for grants under the program that fiscal year to make grants to entities described in subsection (b)(1)(C); and (4)use not more than 2 percent of the amounts made available for grants under the program that fiscal year to make grants to entities described in subsection (b)(1)(D). (d)

Priority for certain entities

In providing grants to entities described in subsection (b)(1)(D), the Secretary shall give priority to an entity that experienced a seasonally adjusted unemployment rate that was at least 97 percent of the national seasonally adjusted unemployment rate for any 3 consecutive months during the most recently completed fiscal year. (e)

Prohibition on grants to certain covered units of local government

A covered unit of local government may not receive a grant under the program if located within a State that has received a grant under the program. (f)

Use of funds in United States

A manufacturer who receives an amount from an eligible entity under the program to carry out an activity may only use such funds to carry out such activity in the United States.

4.

Requirements for grant recipients

(a)

Application process

To receive a grant under the program, an entity eligible for a grant under section 3(b) shall submit to the Secretary of Commerce an application at such time, in such manner, and containing such information as the Secretary may require, but which shall include at least the plan of that entity to carry out, through grants made to third parties, an activity described in section 3(a). (b)

Proposed manufacturing enhancement strategy

Not later than 6 months after the date on which an entity eligible for a grant under section 3(b) receives notice that it has been awarded a grant under the program, the entity shall submit to the Secretary a proposed manufacturing enhancement strategy, which shall include— (1)a description of the plans of the entity to make grants to third parties with grant funds; (2)a description of the goals with respect to such grants, including— (A)the number of jobs to be created or retained by third-party grant recipients; (B)the sales to be increased or retained by third-party grant recipients; (C)the cost savings to be achieved by third-party grant recipients due to energy efficiency savings; (D)the workforce training investments to be made by third-party grant recipients, including— (i)the number of training hours to be provided; and (ii)a description of the nationally portable, industry recognized credentials or, if not available, other credentials, related to the targeted industry cluster that the eligible entity proposes to support, develop, or use as a performance measure, in order to carry out the goals of the entity with respect to the proposed manufacturing enhancement strategy; (E)the amount of capital to be provided to small- or medium-sized manufacturers to expand the export opportunities of manufacturers; and (F)private investments from the third party recipients or affiliated private investors leveraged by grant funding; (3)a written assurance that the entity intends to establish a Made In America Partnership Board— (A)to assist the entity in making grants to third parties; and (B)which shall be comprised of, to the extent practicable, representatives of— (i)economic development agencies of State and local governments; (ii)departments of labor; (iii)workforce investment boards and agencies; (iv)institutions of higher education, including community colleges run by a State; (v)economic development organizations; (vi)chambers of commerce; (vii)nonprofit organizations; (viii)philanthropic organizations; (ix)industry associations; and (x)such other organizations or entities as the entity considers appropriate; (4)a description of the plans of the entity to foster, through the Made In America Partnership Board, collaboration between State and local economic development organizations and agencies, State and local workforce development organizations and agencies, small- or medium-sized manufacturers, and institutions of higher education (including community colleges run by a State) to— (A)improve resource allocation; and (B)ensure comprehensive counseling, technical assistance, workforce development, and export assistance are provided to small- or medium-sized manufacturers. (c)

Approval of proposed manufacturing enhancement strategies

(1)

In general

The Secretary shall approve or disapprove a proposed manufacturing enhancement strategy submitted under subsection (b) not later than 90 days after the date on which the Secretary receives such strategy. (2)

Disbursement of grant funds prohibited without approval

The Secretary shall not disburse to an entity awarded a grant under the program the grant funds relating to that grant until the proposed manufacturing enhancement strategy of that entity has been approved by the Secretary. (3)

Opportunity for resubmission

If the Secretary does not approve a proposed manufacturing enhancement strategy submitted under subsection (b), the Secretary shall provide to the entity that submitted the strategy— (A)the reasons for disapproval; and (B)an opportunity to revise and resubmit the strategy until such strategy is approved. (d)

Local governments

In developing a proposed manufacturing enhancement strategy under subsection (b), a covered unit of local government shall share information relating to potential grant activities with the State that includes that government to ensure the maximization of resources made available to small- or medium-sized manufacturers. (e)

Coordination with Hollings Manufacturing Extension Centers

Each grant recipient shall, to the extent appropriate, coordinate with a Hollings Manufacturing Extension Center as a preferred provider of services to implement the manufacturing enhancement strategy of the recipient. (f)

Workforce training investments

(1)

In general

A recipient of a grant under the program may not use more than half of the amount of the grant for workforce training investments. (2)

Training and retraining of employees

Each grant recipient shall, with respect to training new employees and retraining employees of small- or medium-sized manufacturers, help postsecondary educational institutions, training institutions, apprenticeship programs, and other training programs align curricula, entrance requirements, and programs to industry demand and nationally portable, industry-recognized credentials (or, if not available for the targeted industry, other credentials, as the Secretary considers appropriate), particularly for higher skill, high-priority occupations validated by the industry. (g)

Administrative expenses

With respect to a grant, a grant recipient may use for the administrative expenses of the recipient an amount that is not more than the greater of— (1)10 percent of the grant amount received; or (2)$75,000. (h)

Annual reports

Not later than one year after the date on which grant funds are received by a grant recipient under the program, and annually thereafter, the grant recipient shall submit to the Secretary a report describing— (1)grants made by the grant recipient to third parties with grant funds; (2)achievements with respect to the goals identified in the proposed manufacturing enhancement strategy of the grant recipient; and (3)for each third party recipient, the achievements of such third party with respect to relevant goals specified in the proposed manufacturing enhancement strategy of the grant recipient.

5.

State and local advisory committee

The Secretary of Commerce shall establish an advisory committee to advise the Secretary with respect to implementing and evaluating the program, which shall be comprised of— (1)individuals representing State and local entities; (2)individuals representing small- or medium-sized manufacturers; and (3)other individuals determined appropriate for inclusion by the Secretary.

6.

Review and evaluation

(a)

Grant recipients

The Secretary of Commerce may review and evaluate the performance of a grant recipient under the program as the Secretary determines appropriate. (b)

Ineligibility for future grants

The Secretary may determine a grant recipient to be ineligible to receive additional grants under the program if the Secretary determines that the grant recipient has failed to achieve compliance with— (1)any applicable guideline or regulation of the Secretary relating to the program, including with respect to the misuse or misappropriation of funds provided under the program; or (2)the proposed manufacturing enhancement strategy of the grant recipient.

7.

GAO study and report

(a)

Study

The Comptroller General shall conduct a study on the program, which shall include an analysis of— (1)grants made by the Secretary of Commerce under the program; (2)grants made to third parties by the recipients of grants made by the Secretary under the program; (3)outcomes relating to proposed manufacturing enhancement strategies submitted to the Secretary; (4)administrative costs relating to the program; (5)activities of the Secretary, the recipients of grants made by the Secretary, and third party grant recipients under the program, including whether the activities of those entities are accomplishing the purposes of this Act; and (6)other information determined appropriate by the Comptroller General for assessing the performance and financial accountability of the program. (b)

Report

Not later than 2 years after the date on which the Secretary makes the first grant under the program, and every 2 years thereafter, the Comptroller General shall submit to Congress a report describing the results of the study conducted under subsection (a), which shall include any recommendations the Comptroller General determines are appropriate for modifying the program. (c)

Access to records

(1)

In general

For purposes of conducting the study under subsection (a), the Comptroller General, and any duly authorized representative of the Comptroller General, shall be permitted to access, examine, and copy any documents, records, and other recorded information— (A)within the possession or control of— (i)the recipient of a grant made by the Secretary under the program; or (ii)the recipient of a grant made by an entity described in clause (i) with grant funds; and (B)determined by the Comptroller General, or the duly authorized representative of the Comptroller General, to be relevant to the study. (2)

Proprietary information

The Comptroller General may not make proprietary information obtained under this section available to the public without the consent of the party to whom the information belongs.

8.

Definitions

In this Act: (1)

Covered unit of local government

The term covered unit of local government means a unit of a government of— (A)a municipality— (i)with a population of at least 50,000 individuals; or (ii)with a population that is less than 50,000 individuals, but that is one of the 10 largest municipalities by population in the State including that municipality; or (B)a county— (i)with a population of at least 200,000 individuals; or (ii)with a population that is less than 200,000 individuals, but that is one of the 10 largest counties by population in the State including that county. (2)

Indian tribe

The term Indian tribe has the meaning given that term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b). (3)

Manufacturer

The term manufacturer shall be defined by the Secretary of Commerce in accordance with the North American Industry Classification System. (4)

Nationally portable

The term nationally portable, with respect to a credential, means a credential that is sought or accepted by businesses within the industry sector involved, across multiple States, as a recognized, preferred, or required credential for recruitment, screening, or hiring purposes. (5)

Small- or medium-sized manufacturer

The term small- or medium-sized manufacturer means a manufacturer that is a small business concern (as such term is defined in section 3 of the Small Business Act (15 U.S.C. 632)). (6)

State

The term State means each of the 50 States, the District of Columbia, and any territory or possession of the United States.

9.

Authorization of appropriations

(a)

In general

There are authorized to be appropriated to the Secretary of Commerce for making grants under the program such sums as may be necessary. (b)

Administrative expenses

There are authorized to be appropriated to the Secretary for administrative expenses relating to the program such sums as may be necessary. (c)

Sense of Congress

It is the sense of Congress that amounts made available to carry out the program should supplement and not supplant other funding provided by Federal departments and agencies to support the manufacturing industry.