[Congressional Record Volume 146, Number 116 (Tuesday, September 26, 2000)]
[House]
[Pages H8079-H8081]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1145
ELECTRONIC COMMERCE ENHANCEMENT ACT OF 2000
Mr. SENSENBRENNER. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 4429) to require the Director of the National Institute
of Standards and Technology to assist small and medium-sized
manufacturers and other such businesses to successfully integrate and
utilize electronic commerce technologies and business practices, as
amended.
The Clerk read as follows:
H.R. 4429
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Electronic Commerce
Enhancement Act of 2000''.
TITLE I--ELECTRONIC COMMERCE
SEC. 101. FINDINGS.
The Congress finds the following:
(1) Commercial transactions on the Internet, whether retail
business-to-customer or business-to-business, are commonly
called electronic commerce.
(2) In the United States, business-to-business transactions
between small and medium-sized manufacturers and other such
businesses and their suppliers is rapidly growing, as many of
these businesses begin to use Internet connections for
supply-chain management, after-sales support, and payments.
(3) Small and medium-sized manufacturers and other such
businesses play a critical role in the United States economy.
(4) Electronic commerce can help small and medium-sized
manufacturers and other such businesses develop new products
and markets, interact more quickly and efficiently with
suppliers and customers, and improve productivity by
increasing efficiency and reducing transaction costs and
paperwork. Small and medium-sized manufacturers and other
such businesses who fully exploit the potential of electronic
commerce activities can use it to interact with customers,
suppliers, and the public, and for external support functions
such as personnel services and employee training.
(5) The National Institute of Standards and Technology's
Manufacturing Extension Partnership program has a successful
record of assisting small and medium-sized manufacturers and
other such businesses. In addition, the Manufacturing
Extension Partnership program, working with the Small
Business Administration, successfully assisted United States
small enterprises in remediating their Y2K computer problems.
(6) A critical element of electronic commerce is the
ability of different electronic commerce systems to exchange
information. The continued growth of electronic commerce will
be enhanced by the development of private voluntary
interoperability standards and testbeds to ensure the
compatibility of different systems.
SEC. 102. REPORT ON THE UTILIZATION OF ELECTRONIC COMMERCE.
(a) Advisory Panel.--The Director of the National Institute
of Standards and Technology (in this title referred to as the
``Director'') shall establish an Advisory Panel to report on
the challenges facing small and medium-sized manufacturers
and other such businesses in integrating and utilizing
electronic commerce technologies and business practices. The
Advisory Panel shall be comprised of representatives of the
Technology Administration, the National Institute of
Standards and Technology's Manufacturing Extension
Partnership program established under sections 25 and 26 of
the National Institute of Standards and Technology Act (15
U.S.C. 278k and 278l), the Small Business Administration, and
other relevant parties as identified by the Director.
(b) Initial Report.--Within 12 months after the date of
enactment of this Act, the Advisory Panel shall report to the
Director and to the Committee on Science of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate on the immediate requirements of
small and medium-sized manufacturers and other such
businesses to integrate and utilize electronic commerce
technologies and business practices. The report shall--
(1) describe the current utilization of electronic commerce
practices by small and medium-sized manufacturers and other
such businesses, detailing the different levels between
business-to-retail customer and business-to-business
transactions;
(2) describe and assess the utilization and need for
encryption and electronic authentication components and
electronically stored data security in electronic commerce
for small and medium-sized manufacturers and other such
businesses;
(3) identify the impact and problems of interoperability to
electronic commerce, and include an economic assessment; and
(4) include a preliminary assessment of the appropriate
role of, and recommendations for, the Manufacturing Extension
Partnership program to assist small and medium-sized
manufacturers and other such businesses to integrate and
utilize electronic commerce technologies and business
practices.
(c) Final Report.--Within 18 months after the date of
enactment of this Act, the Advisory Panel shall report to the
Director and to the Committee on Science of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a 3-year assessment of the needs
of small and medium-sized manufacturers and other such
businesses to integrate and utilize electronic commerce
technologies and business practices. The report shall
include--
(1) a 3-year planning document for the Manufacturing
Extension Partnership program in the field of electronic
commerce; and
(2) recommendations, if necessary, for the National
Institute of Standards and Technology to address
interoperability issues in the field of electronic commerce.
SEC. 103. ELECTRONIC COMMERCE PILOT PROGRAM.
The National Institute of Standards and Technology's
Manufacturing Extension Partnership program, in consultation
with the Small Business Administration, shall establish a
pilot program to assist small and medium-sized manufacturers
and other such businesses in integrating and utilizing
electronic commerce technologies and business practices. The
goal of the pilot program shall be to provide small and
medium-sized manufacturers and other such businesses with the
information they need to make informed decisions in utilizing
electronic commerce-related goods and services. Such program
shall be implemented through a competitive grants program for
existing Regional Centers for the Transfer of Manufacturing
Technology established under section 25 of the National
Institute of Standards and Technology Act (15 U.S.C. 278k).
In carrying out this section, the Manufacturing Extension
Partnership program shall consult with the Advisory Panel and
utilize the Advisory Panel's reports.
TITLE II--ENTERPRISE INTEGRATION
SEC. 201. ENTERPRISE INTEGRATION ASSESSMENT AND PLAN.
(a) Assessment.--The Director shall work to identify
critical enterprise integration standards and implementation
activities for major manufacturing industries underway in the
United States. For each major manufacturing industry, the
Director shall work with industry representatives and
organizations currently engaged in enterprise integration
activities and other appropriate representatives as
necessary. They shall assess the current state of enterprise
integration within the industry, identify the remaining steps
in achieving enterprise integration, and work toward
agreement on the roles of
[[Page H8080]]
the National Institute of Standards and Technology and of the
private sector in that process. Within 90 days after the date
of the enactment of this Act, the Director shall report to
the Congress on these matters and on anticipated related
National Institute of Standards and Technology activities for
the then current fiscal year.
(b) Plans and Reports.--Within 180 days after the date of
the enactment of this Act, the Director shall submit to the
Congress a plan for enterprise integration for each major
manufacturing industry, including milestones for the National
Institute of Standards and Technology portion of the plan,
the dates of likely achievement of those milestones, and
anticipated costs to the Government and industry by fiscal
year. Updates of the plans and a progress report for the past
year shall be submitted annually until for a given industry,
in the opinion of the Director, enterprise integration has
been achieved.
SEC. 202. DEFINITIONS.
For purposes of this title--
(1) the term ``Director'' means the Director of the
National Institute of Standards and Technology;
(2) the term ``enterprise integration'' means the
electronic linkage of manufacturers, assemblers, and
suppliers to enable the electronic exchange of product,
manufacturing, and other business data among all businesses
in a product supply chain, and such term includes related
application protocols and other related standards; and
(3) the term ``major manufacturing industry'' includes the
aerospace, automotive, electronics, shipbuilding,
construction, home building, furniture, textile, and apparel
industries and such other industries as the Director
designates.
The SPEAKER pro tempore (Mr. Hansen). Pursuant to the rule, the
gentleman from Wisconsin (Mr. Sensenbrenner) and the gentleman from
Texas (Mr. Hall) each will control 20 minutes.
The Chair recognizes the gentleman from Wisconsin (Mr.
Sensenbrenner).
General Leave
Mr. SENSENBRENNER. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days within which to revise and extend
their remarks on H.R. 4429.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Wisconsin?
There was no objection.
(Mr. SENSENBRENNER asked and was given permission to revise and
extend his remarks.)
Mr. SENSENBRENNER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, small and medium-sized manufacturers contribute greatly
to our Nation's economic growth, creating thousands of new jobs each
year and providing all Americans with quality manufactured goods.
The emergence of electronic commerce has the potential to assist
small and medium-sized manufacturers develop new products and markets,
interact more quickly and efficiently with suppliers and customers and
improve productivity by increasing efficiency and reducing transaction
costs and paperwork.
Despite the benefits electronic commerce has to offer, small and
medium-sized manufacturers face significant challenges in integrating
electronic commerce into their operation because of the complexity of
multiple technologies, expensive deployment costs and the lack of
interoperability standards.
H.R. 4429, the Electronic Commerce Enhancement Act of 2000, helps to
assist small and medium-sized businesses to successfully integrate and
utilize electronic commerce technologies and business practices.
Specifically, the bill requires the National Institute of Standards and
Technology of the Department of Commerce to assist small and medium-
sized manufacturers by assessing critical enterprise integration
standards in implementation activities for major manufacturing
industries and to develop a plan for enterprise integration for each
major manufacturing industry.
This bill was unanimously approved by the Committee on Science on
July 26 of this year. I wish to commend the ranking member of the
Subcommittee on Technology, the gentleman from Michigan (Mr. Barcia),
and the chairwoman of the subcommittee, the gentlewoman from Maryland
(Mrs. Morella), for their efforts, and urge my colleagues to support
its passage today.
Mr. Speaker, I reserve the balance of my time.
Mr. HALL of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, H.R. 4429 is a very important piece of legislation, and
I wish to compliment the gentleman from Michigan (Mr. Barcia) and our
chairman for their persistence in focusing the Congress on the impacts
that electronic commerce is having on our small businesses throughout
this country. Competing as a small businessman can be very tough under
the very best of circumstances, and it gets just that much harder
during times of rapid change. Today, computers and e-commerce are
turning the world of many small businessmen and women on their head.
They do not know which way to go.
The gentleman from Michigan (Mr. Barcia) and his cosponsors have
written legislation that will really help small businesses. It will
help them tremendously in obtaining the information and expertise
necessary to make intelligent business decisions as they move onto the
Internet. This help will be available through the Manufacturing
Extension Program of the Department of Commerce.
The gentleman from Michigan (Mr. Barcia), the gentlewoman from
Michigan (Ms. Rivers), and the gentlewoman from Michigan (Ms. Stabenow)
also introduced H.R. 4906 earlier this year. It is a bill that very
aggressively addresses another small business problem that is just
around the corner.
According to recent testimony before the Committee on Science,
European governments are spending over $45 million per year to develop
standards that will permit companies to exchange manufacturing data
instantaneously and in effect establish virtual manufacturing
enterprises. H.R. 4906 provides for a meaningful U.S. role in the
development of these standards and for creating the tools that small
businesses will need to participate in this new mode of business
interaction.
We appreciate the willingness of the gentleman from Wisconsin
(Chairman Sensenbrenner) to add sections from H.R. 4906 to the bill
before us today, and I urge my colleagues to support H.R. 4429.
Mr. Speaker, I yield such time as he may consume to the gentleman
from Michigan (Mr. Barcia).
Mr. BARCIA. Mr. Speaker, I rise today in support of H.R. 4429, The
Electronic Commerce Enhancement Act of 2000.
H.R. 4429 is a bipartisan effort to assist small and medium-sized
enterprises in bringing their businesses on line. I introduced this
bill, along with the gentleman from California (Mr. Calvert), the
gentleman from Washington (Mr. Baird), the gentleman from Pennsylvania
(Mr. Doyle), and the gentleman from Colorado (Mr. Udall) earlier this
year. This bill is the result of Subcommittee on Technology hearings
and a district workshop I held on the electronic commerce needs of
small and medium-sized manufacturers.
As large companies move their business transactions on line, small
businesses must go on line also. Unfortunately, many of these smaller
manufacturers do not have the information they need to make informed
decisions on e-commerce-related purchases and services. As one small
manufacturer put it, ``I know whether I need a $20,000 or a $30,000
truck, but I do not have any idea of whether I need a $5,000 or a
$50,000 e-mail server.''
The goal of this legislation is to provide American small business
with information and knowledge they need to make these critical
business decisions. This bill builds upon the successful Manufacturing
Extension Partnerships Program, or MEP. In addition, H.R. 4429
authorizes the establishment of an advisory panel to determine the e-
commerce needs of small businesses nationwide.
The MEP, working with this advisory panel, will establish a pilot
program that will allow MEP centers to provide small manufacturers with
the information they need to make informed purchases of e-commerce
products and services.
In addition, this legislation incorporates some provisions of H.R.
4906, the Enterprise Integration Act, which I introduced along with the
gentlewoman from Michigan (Ms. Rivers). These provisions address the
issue of interoperability in the manufacturing supply chain. The
adoption of e-commerce business practices within supply chains is often
hindered by the lack of interoperability of software, hardware and
networks in exchanging product data and other key business information.
[[Page H8081]]
A recent study showed that the U.S. automotive supply chain alone
suffers at least $1 billion in lost productivity due to problems of
interoperability. Other industries with complex manufacturing
requirements are expected to suffer similar losses, including
aerospace, electronics, shipbuilding and construction, to name just a
few.
The National Institute of Standards and Technology has supported the
first phase of an interoperability program in the auto industry called
STEP. In my home State of Michigan, STEP proved to be highly successful
and was strongly supported by the auto industry and manufacturers in
their supply chain. The provisions of H.R. 4429 build upon this prior
experience.
NIST is authorized to perform an assessment to identify critical
enterprise integration standards and implementation activities for
major manufacturing industries and to report to Congress on the
appropriate role for working with industry in this area.
I want to especially this morning thank the Subcommittee on
Technology chairwoman, the gentlewoman from Maryland (Mrs. Morella),
for the series of hearings that she has held on e-commerce during this
past 2-year session. These hearings have brought attention to the
challenges facing our small manufacturers as they enter the world of
electronic business.
I also want to especially thank the gentleman from Wisconsin
(Chairman Sensenbrenner) and the ranking member, the gentleman from
Texas (Mr. Hall), for their gracious efforts to move this bill through
the Committee on Science and bringing it to the floor so expeditiously.
In closing, I believe this bill represents sound and reasonable
policy and builds upon the successful track record of the Manufacturing
Extension Partnership Program and the National Institute of Standards
and Technology.
I urge my colleagues to support this bill.
Mr. SENSENBRENNER. Mr. Speaker, I yield 3 minutes to the gentlewoman
from Maryland (Mrs. Morella).
Mrs. MORELLA. Mr. Speaker, I rise today in support of H.R. 4429, the
Electronic Commerce Enhancement Act of 2000. I want to thank the
chairman of the Committee on Science, the gentleman from Wisconsin (Mr.
Sensenbrenner), for helping to bring this bill to the floor. I want to
thank the ranking member, the gentleman from Texas (Mr. Hall), for his
yeoman-like work in this. Certainly I value the leadership of the
ranking member of the Subcommittee on Technology for the work that he
has done and his leadership in helping to forward this very important
measure.
During a busy day, most Americans probably do not even stop to think
about the daily impact small manufacturing has on our lives; yet it is
all but impossible to get through a day without using products that are
created by small manufacturers. Everything from the clothes we wear, to
the chairs we sit on, to the telecommunications equipment that we use
to broadcast these House proceedings live can be attributed in part to
the products of small manufacturers.
Small manufacturers make up over 95 percent of all United States
manufacturers, and employ one out of every 10 American workers. It is
not surprising that small manufacturers contribute so greatly to our
Nation's economic growth and prosperity; and in recognition of this
vital sector of our economy, we declared last year the year of the
small manufacturer.
Last fall, as has been mentioned, the Subcommittee on Technology,
which I Chair and on which the gentleman from Michigan (Mr. Barcia) is
the ranking member, convened a hearing looking at the challenges and
the opportunities facing small and medium-sized manufacturers in the
coming decade. As implementing successful electronic commerce
strategies emerge is one of the industry's top priorities, it is
estimated that sales in electronic commerce alone will reach nearly
$3.2 trillion by the year 2003.
Successfully implemented, e-commerce business strategies have the
potential to significantly increase productivity and revenues for many
small manufacturers. Electronic commerce can help small manufacturers
develop new products and markets, while at the same time allowing them
to interact more quickly and efficiently with their suppliers and
customers.
We had a number of small manufacturers as well as the National
Association of Manufacturers testify at our hearing last fall, and they
all agreed that we need to address this issue and that the National
Institute of Standards and Technology, such a gem in our Federal
laboratory system, can play a very important role in helping to achieve
that goal.
Mr. Speaker, I urge my colleagues to join in support of the
Electronic Commerce Enhancement Act of 2000.
Mr. HALL of Texas. Mr. Speaker, I yield 2 minutes to the gentlewoman
from Michigan (Ms. Rivers).
Ms. RIVERS. Mr. Speaker, I am pleased to rise in support of H.R.
4429, a bill that recognizes the importance of the Internet to our
economy, and especially the importance of the Internet as a tool in
business to business transactions.
Unfortunately, as Internet opportunities opened up, many small and
medium-sized manufacturers, who are crucial to our economy, were not
able to exploit the potential of e-commerce activities because of
problems of interoperability.
The costs of this barrier of interoperability are enormous. According
to a recent National Institutes of Standards and Technology study of
product data exchange in the automotive sector alone, the inability to
inefficiently exchange product data through the automotive supply chain
conservatively costs the Internet about $1 billion per year.
This bill would allow the NIST to work with business and industry to
develop voluntary standards that will assure that U.S. firms will and
can continue to exploit the power of the Internet to collaborate with
trading partners and, through greater speed and agility, to participate
in global markets.
It also allows for a constructive U.S. role in the development of
these standards and for helping equip small businesses with the
instruments necessary for this new way of doing business.
I thank the gentleman from Michigan (Mr. Barcia) for introducing this
important bill, and I urge my colleagues to support it.
{time} 1200
Mr. HALL of Texas. Mr. Speaker, we have no more speakers, and I yield
back the balance of our time.
Mr. SENSENBRENNER. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Hansen). The question is on the motion
offered by the gentleman from Wisconsin (Mr. Sensenbrenner) that the
House suspend the rules and pass the bill, H.R. 4429, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read as follows: ``A bill
to require the Director of the National Institute of Standards and
Technology to assist small and medium-sized manufacturers and other
such businesses to successfully integrate and utilize electronic
commerce technologies and business practices, and to authorize the
National Institute of Standards and Technology to assess critical
enterprise integration standards and implementation activities for
major manufacturing industries and to develop a plan for enterprise
integration for each major manufacturing industry.''.
A motion to reconsider was laid on the table.
____________________