[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1956 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 475
118th CONGRESS
  2d Session
                                S. 1956

   To improve the commercialization of Federal research by domestic 
                 manufacturers, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 13, 2023

Ms. Baldwin (for herself and Mr. Vance) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

                             August 1, 2024

              Reported by Ms. Cantwell, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
   To improve the commercialization of Federal research by domestic 
                 manufacturers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Invent Here, Make Here Act 
of 2023''.</DELETED>

<DELETED>SEC. 2. IMPROVEMENT OF COMMERCIALIZATION OF FEDERAL RESEARCH 
              BY DOMESTIC MANUFACTURERS.</DELETED>

<DELETED>    Section 2 of the National Institute of Standards and 
Technology Act (15 U.S.C. 272) is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(f) Commercialization of Federal Research by Domestic 
Manufacturers.--In order for the Institute to meet the need described 
in section 1(a)(1) and most effectively carry out the activities under 
subsection (c)(1) of this section, the Director shall--</DELETED>
        <DELETED>    ``(1) coordinate with the Manufacturing USA 
        Network established under section 34(c)(1) to identify domestic 
        manufacturers that can develop commercial products based on 
        research conducted by Federal agencies;</DELETED>
        <DELETED>    ``(2) work with the Administrator of the Small 
        Business Administration to identify domestic investors to 
        support the development of commercial products based on 
        research conducted by Federal agencies; and</DELETED>
        <DELETED>    ``(3) coordinate with the Director of the Made in 
        America Office at the Office of Management and Budget to use 
        the procedures described in section 204(c)(2)(A)(i) of title 
        35, United States Code, to identify appropriate domestic 
        manufacturers and investors to commercialize products based on 
        Federal research and manufacture such products in the United 
        States.''.</DELETED>

<DELETED>SEC. 3. STUDY AND COMPREHENSIVE REVIEW OF COMMERCIALIZATION OF 
              FEDERAL RESEARCH BY DOMESTIC MANUFACTURERS.</DELETED>

<DELETED>    Not later than 540 days after the date of enactment of 
this Act, the Director of the National Institute of Standards and 
Technology shall--</DELETED>
        <DELETED>    (1) complete a study and comprehensive review of 
        the commercialization of Federal research by domestic 
        manufacturers that--</DELETED>
                <DELETED>    (A) addresses--</DELETED>
                        <DELETED>    (i) what barriers currently (as of 
                        the date on which the study is completed) exist 
                        for domestic manufacturers to commercialize 
                        Federal research; and</DELETED>
                        <DELETED>    (ii) what role investment and the 
                        availability of investors plays in the 
                        encouragement or discouragement of the 
                        commercialization of Federal research by 
                        domestic manufacturers; and</DELETED>
                <DELETED>    (B) provides recommendations for 
                modifications to the comprehensive strategic plan 
                developed and implemented pursuant to section 107 of 
                the American Innovation and Competitiveness Act (15 
                U.S.C. 272 note) to ensure that Federal science, 
                engineering, and technology research is being 
                transferred to domestic manufacturers to modernize 
                manufacturing processes in accordance with section 
                2(b)(1) of the National Institute of Standards and 
                Technology Act (15 U.S.C. 272(b)(1)); and</DELETED>
        <DELETED>    (2) submit to the Committee on Commerce, Science, 
        and Transportation of the Senate and the Committee on Science, 
        Space, and Technology of the House of Representatives a report 
        on the findings of the Director with respect to the study and 
        review completed under paragraph (1).</DELETED>

<DELETED>SEC. 4. PREFERENCE FOR UNITED STATES INDUSTRY.</DELETED>

<DELETED>    Section 204 of title 35, United States Code, is amended to 
read as follows:</DELETED>
<DELETED>``Sec. 204. Preference for United States industry</DELETED>
<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Country of concern.--The term `country of 
        concern' means a country that--</DELETED>
                <DELETED>    ``(A) is a covered nation, as that term is 
                defined in section 4872(d) of title 10; or</DELETED>
                <DELETED>    ``(B) the Secretary of Commerce determines 
                is engaged in conduct that is detrimental to the 
                national security of the United States.</DELETED>
        <DELETED>    ``(2) Manufactured substantially in the united 
        states.--The term `manufactured substantially in the United 
        States' means manufactured substantially from all articles, 
        materials, or supplies mined, produced, or manufactured in the 
        United States.</DELETED>
        <DELETED>    ``(3) Relevant congressional committees.--The term 
        `relevant congressional committees' means--</DELETED>
                <DELETED>    ``(A) the Committee on Commerce, Science, 
                and Transportation of the Senate; and</DELETED>
                <DELETED>    ``(B) the Committee on Science, Space, and 
                Technology of the House of Representatives.</DELETED>
<DELETED>    ``(b) General Preference.--Notwithstanding any other 
provision of this chapter, and subject to subsection (c), no small 
business firm or nonprofit organization which receives title to any 
subject invention and no assignee of any such small business firm or 
nonprofit organization shall grant to any person the exclusive right to 
use or sell any subject invention unless such person agrees that any 
products embodying the subject invention or produced through the use of 
the subject invention will be manufactured substantially in the United 
States.</DELETED>
<DELETED>    ``(c) Waivers.--</DELETED>
        <DELETED>    ``(1) In general.--In individual cases, subject to 
        paragraph (2), the requirement for an agreement described in 
        subsection (b) may be waived by the Federal agency under whose 
        funding agreement the applicable subject invention was made 
        upon a showing by the small business firm, nonprofit 
        organization, or assignee that reasonable but unsuccessful 
        efforts have been made to grant licenses on similar terms to 
        potential licensees that would be likely to manufacture 
        substantially in the United States or that under the 
        circumstances domestic manufacture is not commercially 
        feasible.</DELETED>
        <DELETED>    ``(2) Conditions on waivers.--</DELETED>
                <DELETED>    ``(A) Before grant of waiver.--Before 
                granting a waiver under paragraph (1), a Federal agency 
                shall--</DELETED>
                        <DELETED>    ``(i) comply with the procedures 
                        developed and implemented pursuant to section 
                        70923(b)(2) of the Build America, Buy America 
                        Act (subtitle A of title IX of division G of 
                        Public Law 117-58); and</DELETED>
                        <DELETED>    ``(ii) in carrying out clause (i), 
                        preserve the confidentiality or trade sensitive 
                        nature of information included in the 
                        applicable application for a license.</DELETED>
                <DELETED>    ``(B) Prohibition on granting certain 
                waivers.--A Federal agency may not grant a waiver under 
                paragraph (1) if, as a result of the waiver, products 
                embodying the applicable subject invention, or produced 
                through the use of the applicable subject invention, 
                will be manufactured substantially in a country of 
                concern.</DELETED>
        <DELETED>    ``(3) Annual report to congressional committees.--
        Not later than 1 year after the date of enactment of the Invent 
        Here, Make Here Act of 2023, and annually thereafter, each 
        Federal agency that, during the preceding year, has received a 
        request for a waiver under this subsection shall submit to the 
        relevant congressional committees a report regarding the 
        decision of the Federal agency to grant or deny each such 
        request.''.</DELETED>

<DELETED>SEC. 5. AMENDMENTS TO THE DIRECTORATE FOR TECHNOLOGY, 
              INNOVATION, AND PARTNERSHIPS.</DELETED>

<DELETED>    Subtitle G of title III of the Research and Development, 
Competition, and Innovation Act (42 U.S.C. 19101 et seq.) is amended--
</DELETED>
        <DELETED>    (1) in section 10382--</DELETED>
                <DELETED>    (A) in paragraph (2), by striking ``and'' 
                after the semicolon;</DELETED>
                <DELETED>    (B) in paragraph (3), by striking the 
                period at the end and inserting ``; and''; 
                and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(4) ensure that products developed through 
        research funded by the Directorate will be manufactured in the 
        United States.'';</DELETED>
        <DELETED>    (2) in section 10383--</DELETED>
                <DELETED>    (A) in paragraph (2), in the matter 
                preceding subparagraph (A), by striking ``products,'' 
                and inserting ``products that will be manufactured in 
                the United States,'';</DELETED>
                <DELETED>    (B) in paragraph (4)(C), by inserting 
                ``producing,'' after ``capable of'';</DELETED>
                <DELETED>    (C) in paragraph (6), by striking ``and'' 
                after the semicolon;</DELETED>
                <DELETED>    (D) in paragraph (7), by striking the 
                period at the end and inserting ``; and''; 
                and</DELETED>
                <DELETED>    (E) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(8) develop industrial capacity to produce 
        innovations competitively in the United States for the global 
        marketplace.'';</DELETED>
        <DELETED>    (3) in section 10384--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``and'' 
                after the semicolon;</DELETED>
                <DELETED>    (B) in paragraph (2), by striking the 
                period at the end and inserting ``; and''; 
                and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(3) maximizes economic benefits by ensuring that 
        innovations developed from research awards are produced in the 
        United States.'';</DELETED>
        <DELETED>    (4) in section 10385--</DELETED>
                <DELETED>    (A) in subsection (b)(1), by striking 
                ``and commercialization'' and inserting 
                ``commercialization, and domestic production''; 
                and</DELETED>
                <DELETED>    (B) in subsection (c)(2), by striking 
                ``and commercialization'' and inserting 
                ``commercialization, and domestic 
                production'';</DELETED>
        <DELETED>    (5) in section 10386(b)(2), by inserting ``with 
        domestic manufacturing operations'' after ``private 
        sector'';</DELETED>
        <DELETED>    (6) in section 10389(a), by striking ``and 
        commercialization'' and inserting ``commercialization, and 
        domestic production'';</DELETED>
        <DELETED>    (7) in section 10391(a), by striking ``and 
        commercialization'' and inserting ``commercialization, and 
        domestic production''; and</DELETED>
        <DELETED>    (8) in section 10394(f)(5), by striking ``and, as 
        appropriate, commercializing'' and inserting ``, 
        commercializing, and producing''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Invent Here, Make Here Act of 
2024''.

SEC. 2. IMPROVEMENT OF COMMERCIALIZATION OF FEDERAL RESEARCH BY 
              DOMESTIC MANUFACTURERS.

    Section 2 of the National Institute of Standards and Technology Act 
(15 U.S.C. 272) is amended by adding at the end the following:
    ``(f) Commercialization of Federal Research by Domestic 
Manufacturers.--In order for the Institute to meet the need described 
in section 1(a)(1) and most effectively carry out the activities under 
subsection (c)(1) of this section, the Director shall--
            ``(1) coordinate with the Secretary of Defense, the 
        Secretary of Energy, the Director of the National Science 
        Foundation, and industry organizations to identify domestic 
        manufacturers that can develop commercial products based on 
        completed research conducted by Federal agencies;
            ``(2) work with the Administrator of the Small Business 
        Administration to identify domestic investors to support the 
        development of commercial products based on research conducted 
        by Federal agencies; and
            ``(3) maintain a publicly accessible and searchable 
        database of domestic manufacturers and their capabilities with 
        respect to commercialization of federally funded research.''.

SEC. 3. STUDY AND COMPREHENSIVE REVIEW OF COMMERCIALIZATION OF FEDERAL 
              RESEARCH BY DOMESTIC MANUFACTURERS.

    Not later than 540 days after the date of enactment of this Act, 
the Director of the National Institute of Standards and Technology 
shall--
            (1) complete a study and comprehensive review of the 
        commercialization of Federal research by domestic manufacturers 
        that--
                    (A) addresses--
                            (i) what barriers currently (as of the date 
                        on which the study is completed) exist for 
                        domestic manufacturers to commercialize Federal 
                        research; and
                            (ii) what role investment and the 
                        availability of investors plays in the 
                        encouragement or discouragement of the 
                        commercialization of Federal research by 
                        domestic manufacturers; and
                    (B) provides recommendations for modifications to 
                the comprehensive strategic plan developed and 
                implemented pursuant to section 107 of the American 
                Innovation and Competitiveness Act (15 U.S.C. 272 note) 
                to ensure that Federal science, engineering, and 
                technology research is being transferred to domestic 
                manufacturers to modernize manufacturing processes in 
                accordance with section 2(b)(1) of the National 
                Institute of Standards and Technology Act (15 U.S.C. 
                272(b)(1)); and
            (2) submit to the Committee on Commerce, Science, and 
        Transportation of the Senate, the Committee on the Judiciary of 
        the Senate, the Committee on Science, Space, and Technology of 
        the House of Representatives, and the Committee on the 
        Judiciary of the House of Representatives a report on the 
        findings of the Director with respect to the study and review 
        completed under paragraph (1).

SEC. 4. PREFERENCE FOR UNITED STATES INDUSTRY.

    Section 204 of title 35, United States Code, is amended to read as 
follows:
``Sec. 204. Preference for United States industry
    ``(a) Definitions.--In this section:
            ``(1) Country of concern.--The term `country of concern' 
        has the meaning given the term `covered nation' in section 
        4872(d) of title 10.
            ``(2) Relevant congressional committees.--The term 
        `relevant congressional committees' means--
                    ``(A) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    ``(B) the Committee on the Judiciary of the Senate;
                    ``(C) the Committee on Science, Space, and 
                Technology of the House of Representatives; and
                    ``(D) the Committee on the Judiciary of the House 
                of Representatives.
    ``(b) General Preference.--Notwithstanding any other provision of 
this chapter, and subject to subsection (c), no small business firm or 
nonprofit organization which receives title to any subject invention 
and no assignee of any such small business firm or nonprofit 
organization shall grant to any person the exclusive right to use or 
sell any subject invention in the United States unless such person 
agrees that any products embodying the subject invention or produced 
through the use of the subject invention will be manufactured 
substantially in the United States.
    ``(c) Waivers.--
            ``(1) In general.--In individual cases, subject to 
        paragraphs (2) and (3), the Federal agency under whose funding 
        agreement the applicable subject invention was made may waive 
        the requirement for an agreement described in subsection (b) 
        upon a showing by the applicable small business firm, nonprofit 
        organization, or assignee that reasonable but unsuccessful 
        efforts have been made to grant licenses on similar terms to 
        potential licensees that would be likely to manufacture 
        substantially in the United States or that under the 
        circumstances domestic manufacture is not commercially 
        feasible.
            ``(2) Review timeline.--Not later than 90 days after the 
        date on which a Federal agency receives a request for a waiver 
        described in paragraph (1) and with respect to which paragraph 
        (3) does not apply, the Federal agency shall issue a decision 
        regarding whether to grant the request.
            ``(3) Prohibition on granting certain waivers without 
        presidential authorization.--If granting a waiver under 
        paragraph (1) would result in products embodying the applicable 
        subject invention or produced through the use of the applicable 
        subject invention being manufactured substantially in a country 
        of concern, the applicable Federal agency may not grant the 
        waiver without the written authorization of the President (or a 
        designee of the President).
            ``(4) Annual report to congressional committees.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the Invent Here, Make Here Act of 
                2024, and annually thereafter, each Federal agency with 
                respect to which, during the preceding year, a 
                nonprofit organization or small business firm that is a 
                party to a funding agreement with the Federal agency 
                elected to retain title under section 202 to the 
                subject invention that was the subject of that funding 
                agreement shall submit to the relevant congressional 
                committees a report that includes the information 
                described in subparagraph (B).
                    ``(B) Contents.--Each report required under 
                subparagraph (A) shall include, for the period covered 
                by the report--
                            ``(i) with respect to each request received 
                        by the applicable Federal agency for a waiver 
                        under this subsection, information regarding--
                                    ``(I) the subject invention that is 
                                the subject of the request;
                                    ``(II) the efforts made by the 
                                entity seeking the waiver to grant the 
                                exclusive right to use or sell the 
                                applicable subject invention to a 
                                person that would agree that any 
                                products embodying the subject 
                                invention or produced through the use 
                                of the subject invention would be 
                                manufactured substantially in the 
                                United States; and
                                    ``(III) in which markets the 
                                products embodying the applicable 
                                subject invention or produced through 
                                the use of the applicable subject 
                                invention will be sold; and
                            ``(ii) with respect to a small business 
                        firm or nonprofit organization that is based in 
                        the United States and has elected to retain 
                        title to a subject invention pursuant to 
                        section 202, whether that firm or organization 
                        intends to manufacture that subject invention 
                        in a foreign country for a foreign market.
                    ``(C) Preservation of confidentiality.--Each 
                Federal agency that is required to submit a report 
                under this paragraph shall preserve the confidentiality 
                or trade sensitive nature of all information included 
                in each such report.''.

SEC. 5. AMENDMENTS TO THE DIRECTORATE FOR TECHNOLOGY, INNOVATION, AND 
              PARTNERSHIPS.

    Subtitle G of title III of the Research and Development, 
Competition, and Innovation Act (42 U.S.C. 19101 et seq.) is amended--
            (1) in section 10382--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) strongly encourage that products developed through 
        research funded by the Directorate will be manufactured in the 
        United States.'';
            (2) in section 10383--
                    (A) in paragraph (2), in the matter preceding 
                subparagraph (A), by striking ``products,'' and 
                inserting ``products that will be manufactured in the 
                United States,'';
                    (B) in paragraph (4)(C), by inserting 
                ``producing,'' after ``capable of'';
                    (C) in paragraph (6), by striking ``and'' after the 
                semicolon;
                    (D) in paragraph (7), by striking the period at the 
                end and inserting ``; and''; and
                    (E) by adding at the end the following:
            ``(8) develop industrial capacity to produce innovations 
        competitively in the United States for the global 
        marketplace.'';
            (3) in section 10384--
                    (A) in paragraph (1), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) maximizes economic benefits by ensuring that 
        innovations developed from research awards are produced in the 
        United States.'';
            (4) in section 10385--
                    (A) in subsection (b)(1), by striking ``and 
                commercialization'' and inserting ``commercialization, 
                and domestic production''; and
                    (B) in subsection (c)(2), by striking ``and 
                commercialization'' and inserting ``commercialization, 
                and domestic production'';
            (5) in section 10386(b)(2), by inserting ``with domestic 
        manufacturing operations'' after ``private sector'';
            (6) in section 10389(a), by striking ``and 
        commercialization'' and inserting ``commercialization, and 
        domestic production'';
            (7) in section 10391(a), by striking ``and 
        commercialization'' and inserting ``commercialization, and 
        domestic production''; and
            (8) in section 10394(f)(5), by striking ``and, as 
        appropriate, commercializing'' and inserting ``, 
        commercializing, and producing''.
                                                       Calendar No. 475

118th CONGRESS

  2d Session

                                S. 1956

_______________________________________________________________________

                                 A BILL

   To improve the commercialization of Federal research by domestic 
                 manufacturers, and for other purposes.

_______________________________________________________________________

                             August 1, 2024

                       Reported with an amendment