[Congressional Record (Bound Edition), Volume 146 (2000), Part 13]
[House]
[Pages 19448-19451]
[From the U.S. Government Publishing Office, www.gpo.gov]



              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

[[Page 19449]]

     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 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

[[Page 19450]]

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.
  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

[[Page 19451]]

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.

                          ____________________