[House Report 106-877]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-877

======================================================================



 
              ELECTRONIC COMMERCE ENHANCEMENT ACT OF 2000

                                _______
                                

 September 21, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Sensenbrenner, from the Committee on Science, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4429]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Science, to whom was referred 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, having considered the same, report 
favorably thereon with amendments and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill.............................................4
 III. Background and Need for the Legislation.........................4
  IV. Summary of Hearings.............................................5
   V. Committee Actions...............................................7
  VI. Summary of Major Provisions of the Bill.........................8
 VII. Section-By-Section Analysis (By Title and Section)/Committee 
      Views...........................................................9
VIII. Cost Estimate..................................................12
  IX. Congressional Budget Office Cost Estimate......................13
   X. Compliance with Public Law 104-4 (Unfunded Mandates)...........14
  XI. Committee Oversight Findings and Recommendations...............14
 XII. Oversight Findings and Recommendations by the Committee on 
      Government Reform and Oversight................................14
XIII. Constitutional Authority Statement.............................14
 XIV. Federal Advisory Committee Statement...........................15
  XV. Congressional Accountability Act...............................15
 XVI. Statement on Preemption of State, Local, or Tribal Law.........15
XVII. Changes in Existing Law Made by the Bill, As Reported..........15
XVIII.Committee Recommendations......................................15

 XIX. Proceedings of Full Committee Markup...........................15

  The amendments are as follows:

                              I. Amendment

  Strike all after the enacting clause and insert the 
following:

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 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.

  Amend the title so as to read:

      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.

                        II. Purpose of the Bill

    The purpose of the bill is to require the Director of the 
National Institute of Standards and Technology (NIST) to assist 
small and medium-sized manufacturers to successfully integrate 
and utilize electronic commerce technologies and business 
practices, and to authorize NIST 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.

              III. Background and Need for the legislation

    Small and medium-sized manufacturers, typically defined as 
those with less than 500 employees, contribute greatly to our 
nation's economic growth, creating thousands of new jobs each 
year and providing all Americans with quality manufactured 
goods. According to statistics compiled by the National 
Association of Manufacturers and the Modernization Forum, small 
manufacturers make up over 98 percent of all U.S. manufacturers 
and employ 1 of every 10 American workers. In addition, it is 
estimated that over 90 percent of all exporting manufacturers 
are small to medium-sized firms. Recognizing the vital role 
these businesses play in the United States, 1999 was declared 
the ``Year of the Small Manufacturer.''
    Commerical transactions on the Internet, whether it be 
business-to-customer or business-to-business, are most commonly 
referred to as electronic commerce, or eCommerce. It is 
estimated that sales in electronic commerce alone will reach 
nearly $3.2 trillion by the year 2003. Successfully 
implemented, eCommerce business strategies have the potential 
to significantly increase productivity and revenues for many 
small and medium-sized manufacturers. Electronic commerce can 
help 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. In 
addition, small and medium-sized manufacturers who fully 
exploit the potential of eCommerce can use it to interact with 
customers, suppliers, and the public, and for external support 
functions such as personnel services and employees training.
    With all the benefits eCommerce has to offer, small and 
medium-sized manufacturers face numerous challenges in 
intergrating successful electronic commerce strategies. The 
first and most basic obstacle facing small and medium-sized 
manufacturers is access to basic information on assessing their 
eCommerce needs and evaluating different options. The high 
costs associated with implementing even the most basic 
eCommerce strategies coupled with the ever changing technology 
options leave small and medium-sized manufacturers at risk for 
investing in expensive systems which may soon be quickly 
rendered obsolete. In addition, many small and medium-sized 
manufacturers who have ventured into the eCommerce arena have 
found that they have invested in expensive technology products 
only to discover that they are incompatible with those of their 
suppliers and customers.
    In small and medium-sized manufacturers are going to 
continue to contribute significantly towards our nation's 
economic growth in the information age, many industry analysts 
agree that strategies must be developed now that will help 
these businesses address the challenges associated with 
integrating successful eCommerce policies. H.R. 4429 was 
introduced to help achieve this goal.
    Enterprise integration may also play an important role in 
the future success of many small and medium-sized 
manufacturers. Enterprise integration involves the electronic 
linkage of manufacturers, assemblers, and suppliers to enable 
them to exchange product, manufacturing, and other business 
data within the supply chain. Many Industry analysts agree that 
more needs to be done to better determine the importance of 
enterprise integration for the manufacturing industry.
    One federal program aimed at assisting small manufacturing 
is the National Institute of Standard and Technology's (NIST) 
Manufacturing and Extension Partnership (MEP). MEP is a 
national network of over 400 not-for-profit centers that 
provide small manufacturers with cost-effective access to a 
variety of services ranging from financial planning and product 
development to quality management and human resource direction. 
MEP centers are located in all 50 states, the District of 
Columbia, and Puerto Rico. Therefore, MEP centers have 
expertise to assist our small and medium-sized manufacturers, 
address the challenges of eCommerce, and assess the importance 
of enterprise integration.
    Federal funding for the MEP centers are matched by state, 
local and private dollars with the federal share decreasing as 
the center matures. In the first three years of operation, the 
Federal Government supports 50 percent of a MEP center's 
operating costs. In year four it is 40 percent and limited to 
one third the total operating cost thereafter. Federal funding 
for the MEP program in Fiscal Year 2000 was $104.8 million.

                        IV. Summary of Hearings

    On September 23, 1999, the Subcommittee on Technology held 
a hearing entitled ``Small Manufacturers and the Challenges of 
the New Millenium.'' The hearing examined the challenges facing 
small manufacturers in the 21st Century and reviewed the 
appropriate role of government, industry, and academia in 
helping to ensure continued growth in the important sector of 
our economy. Witnesses included, The Honorable Ray Kammer, 
Director, National Institute of Standards and Technology, 
Gaithersburg, MD; Mr. Jerry Jasinowski, President, National 
Association of Manufacturers, Washington, DC; Mr. John 
Churchill, Quality Assurance Director, Wilcoxin Research, 
Gaithersburg, MD; Mr. Norm Braddock, President, Saginaw 
Remanufacturing, Saginaw, MI.
    Mr. Raymond Kammer testified the National Institute of 
Standards and Technology (NIST), the National Association of 
Manufacturers Forum had recently convened a national summit on 
small manufacturing in Washington, DC. The Summit examined four 
topics of importance to small manufacturers: electronic 
commerce, workforce, international trade, and sustainable 
manufacturing. He also stated that NIST's Manufacturing 
Extension Partner (MEP) program provides hands-on assistance to 
small manufacturers. He said that through the MEP network of 
local extension centers, which are each linked to public and 
private organizations with complementing expertise, small 
manufacturers have access to comprehensive sets of technology 
and business assistance. He also gave examples of specific 
small manufacturing companies that have been assisted by MEP. 
Finally, Mr. Kammer described other programs at NIST, such as 
the Measurements and Standards Laboratories, that help benefit 
small manufacturers.
    Mr. Jerry Jasinowski discussed in detail the four topics 
addressed at the National Summit on Small Manufacturing. He 
said the number one issue facing small manufacturing is finding 
qualified workers to fill employment slots. He said many small 
manufacturers want to hire more minorities and older Americans 
but lack the resources to adequately train them. On the subject 
of eCommerce, Mr. Jasinowski suggested that NIST MEP institute 
a website that will provide small manufacturers with advice on 
getting started in eCommerce. Mr. Jasinowski testified that 
many small manufacturers were not participating to their 
fullest extent in international trade because of daunting trade 
barriers. He said programs such as the Export-Import bank were 
important for small manufacturers. Mr. Jasinowski also said 
that we need greater flexibility and cooperation in 
environmental quality enhancement between the Federal 
Government and the private sector. Finally, he stated that he 
supported the work of NIST MEP and looked forward to working in 
partnership with them to ensure small manufacturers continue to 
thrive.
    Mr. John Churchill stated that he had utilized the services 
of his local MEP affilated office on many occasions. He 
testified that advise from the MEP affiliate helped to decrease 
his company's products failure rates and product warrant 
returns, thus affecting about 50 percent of their sales.
    Mr. Norm Braddock described for the Subcommittee his 
experience with the Saginaw Valley State University's Center 
for Manufacturing Improvement (an affiliate of Michigan MEP). 
He stated that their expertise helped him to better understand 
how the production process contributes to the overall cost of 
the product, thus allowing him to provide more accurate quotes 
to potential customers. Mr. Braddock testified that he gained a 
great deal of knowledge from the national summit and 
appreciated the opportunity to discuss with other small 
manufacturers ways to improve their businesses. He also 
stressed the importance and difficulties facing small 
manufacturers coming ``on-line.''
    On June 22, 2000 the Subcommittee on Technology held a 
hearing entitled, ``E-commerce: A Review of Standards and 
Technology to Support Interoperability.'' This hearing examined 
the impact of standards and emerging technologies that support 
electronic commerce. Witnesses included: Dr. Karen Brown, 
Deputy Director, National Institute of Standards and 
Technology, Gaithersburg, MD; Mr. Keith Krach, Chief Executive 
Officer and Chairman of the Board, Ariba, Inc., Mountain View, 
CA; Mr. Ken Baker, President, ERIM, Ann Arbor, MI.
    Dr. Karen Brown, Deputy Director, National Institute of 
Standards and Technology, discussed NIST's role in eCommerce, 
which is to work closely with the private sector and to provide 
tools such as: measurements and standards for the hardware, 
software and networks that comprise the eCommerce 
infrastructure; direct hands-on assistance through MEP to U.S. 
small manufactures who need help to thrive in the eCommerce 
economy; and co-funding private sector research through the ATP 
to develop new technologies that will enable future advances in 
the eCommerce infrastructure. NIST is leading the global effort 
to develop the Advanced Encryption Standard, which will be used 
to ensure that encrypted sensitive documents can not be decoded 
by anyone but the intended parties. They are also helping to 
develop Public Key Infrastructure (PKI) standards that ensure 
accurate identification of the parties in an Internet 
transaction. Dr. Brown states that NIST has proposed a FY 2001 
eCommerce initiative with three components: MEP eCommerce 
outreach ($9 million plus $6 million reprogramming, totaling 
$15 million), Manufacturing Interoperability ($4 million), and 
Wireless Technologies ($1 million).
    Mr. Keith Krach, Chief Executive Officer and Chairman of 
the Board, Ariba Inc., stated that business to business 
eCommerce spending is necessary spending, not discretionary. It 
enables small companies to leverage the Internet economy by 
giving them a chance to work with larger businesses that they 
might have never encountered. Furthermore, Mr. Krach believes 
that the Federal Government could support business to business 
eCommerce by becoming a broad user of eCommerce and derive many 
of the same benefits that businesses gain. In closing Mr. Krach 
believes that Government's information technology spending 
should be directed towards implementing the infrastructure that 
will enable the Government to participate in the business-to-
business marketplace.
    Mr. Ken Baker, President, ERIM, testified that the problem 
of interoperability in the U.S. industrial supply chain costs 
the American automotive industry more than $1 billion each 
year. ERIM's center for Electronic Commerce has been working on 
interoperability issues for over 10 years. They have also 
worked with the Automotive Industry Action Group (AIAG) and 
NIST to conduct pilots to improve the quality and timeliness of 
data exchange among current automotive manufactures and their 
suppliers. Mr. Baker added that the industry lacks the third 
party leadership to reach common agreement on standards.

                          V. Committee Actions

    On July 26, 2000, the Committee on Science convened to 
mark-up H.R. 4429, The Electronic Commerce Enhancement Act of 
2000. A substitute amendment was offered and adopted by voice 
vote. No additional amendments were offered to the substitute.
    1. Mrs. Morella and Mr. Barcia offered a substitute 
amendment making several changes to the bill. The substitute 
streamlines the findings contained in the original text, 
modifies the make-up of the Advisory Panel to allow the 
Director of NIST to select relevant outside parties to 
participate on the Advisory Panel rather than name specific 
organizations in the bill, and better defines the goals of the 
electronic commerce pilot program. In addition, the substitute 
creates a new title to the bill to address the issue of 
enterprise integration. The new title requires the Director of 
NIST to conduct an assessment to identify critical enterprise 
integration standards and implementation activities for major 
manufacturing industries underway in the United States and to 
report to Congress within 90 days of enactment on these 
matters. The new title also requires the Director of NIST 
within 180 days of enactment of the bill to submit a plan for 
enterprise integration for each major manufacturing industry, 
including milestones for NIST's part of the plan, and 
anticipated costs to the Government and industry by fiscal 
year. Finally, the new title requires yearly updates of these 
plans until the Director of NIST determines that enterprise 
integration for a particular industry has been achieved. The 
substitute was adopted by voice vote.
    With a quorum present, Mr. Hall moved the H.R. 4429, as 
amended, be reported. The motion was adopted by a voice vote.

              VI. Summary of Major Provisions of the Bill

    Major provisions of H.R. 4429 are directed towards 
assisting small and medium-sized manufacturers to successfully 
integrate eCommerce into their business practices. The 
legislation:
    1. Requires the Director of the National Institute of 
Standards and Technology (NIST) to establish an Advisory Panel 
to report on the challenges facing small and medium size 
manufacturers in integrating and utilizing electronic commerce 
technologies. The Advisory Panel is to be comprised of 
representatives of the technology Administration, the NIST's 
Manufacturing Extension Partnership (MEP) program, the Small 
Business Administration, and other relative parties as 
identified by the Director.
    2. Requires the Advisory Panel to submit an initial report 
within 12 months from the date of enactment of the bill to the 
Director of NIST, the House Science Committee, and the Senate 
Committee on Commerce, Science, and Transportation detailing 
the Advisory Panel's preliminary findings and recommendations.
    3. Requires the Advisory Panel to issue a final report to 
the Director of NIST, the House Science Committee, and the 
Senate Committee on Commerce, Science, and Transportation 
within 18 months of enactment of the Act. Requires the report 
to contain a three-year planning document for NIST's MEP 
program in the field of electronic commerce.
    4. Allows the NIST MEP program, in conjunction with the 
Small Business Administration, to establish a pilot program to 
assist small and medium-sized manufacturers and other 
businesses in integrating and utilizing electronic commerce 
technologies and business practices. Requires the program to be 
implemented through a competitive grants program to be awarded 
among the existing MEP Regional Centers. Directs the MEP 
program to consult with the Advisory Panel and utilize the 
Advisory Panel's reports.
    5. Requires the Director to conduct an assessment to 
identify critical enterprise integration standards and 
implementation activities for major manufacturing industries 
underway in the U.S. Working in consultation with industry 
representatives, the Director will identify the current state 
of enterprise integration within the industry and detail the 
remaining steps to be taken in achieving enterprise 
integration. Requires the Director within 90 days after the 
date of enactment of the bill to report to Congress on these 
matters and on anticipated related NIST activities for the 
current fiscal year.
    6. Requires the Director within 180 days after the date of 
enactment of the bill to submit a plan to Congress for 
enterprise integration for each major manufacturing industry, 
including milestones for NIST's part of the plan, and 
anticipated costs to the Government and industry by fiscal 
year. Requires that updates of the plans and a progress report 
for the past year shall be submitted annually until for a given 
industry, in the option of the Director, enterprise integration 
has been achieved.

        VII. Section-by-Section Analysis (By Title and Section)

Section 1. Short title

    The Act's title is the ``Electronic Commerce Enhancement 
Act of 2000.''

                      Title I: Electronic Commerce


Section 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 
business 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, 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 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.

Section 102. Report on the utilization of electronic commerce

    (a) Requires the Director of the National Institute of 
Standards and Technology (NIST) to establish an Advisory Panel 
to report on the challenges facing small and medium size 
businesses in integrating and utilizing electronic commerce 
technologies. The advisory Panel is to be comprised of 
representatives of the Technology Administration, the NIST's 
Manufacturing Extension Partnership (MEP) program, the Small 
Business Administration, and other relative parties as 
identified by the Director.
    (b) Requires the Advisory Panel to submit an initial report 
within 12 months from the date of enactment of the bill to the 
Director of NIST, the House Science Committee, and the Senate 
Committee on Commerce, Science, and Transportation. The report 
should:
          (1) describe the current utilization of electronic 
        commerce practices by small and medium-size 
        manufacturers and other businesses, detailing the 
        different levels between business-to-retail customers 
        and business-to-business transactions;
          (2) describe and assess the utilization and need for 
        encryption and electronic authentication technologies, 
        and the security needs for electronically stored data 
        in electronic commerce for small and medium-sized 
        manufacturers and other 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, NIST's 
        MEP program to assist small and medium-sized 
        manufacturers and other businesses to integrate and 
        utilize electronic commerce technologies and business 
        practices.
    (c) Requires the Advisory Panel to issue a final report to 
the Director of NIST, the House Science Committee, and the 
Senate Committee on Commerce, Science, and Transportation 
within 18 months of enactment of the Act. The final report 
shall include:
          (1) a three-year planning document for the NIST MEP 
        program in the field of electronic commerce; and
          (2) recommendations, if necessary, for NIST to 
        address interoperability issues in the field of 
        electronic commerce.
            Committee views
    The Committee believes that NIST can play an important role 
in assisting small and medium-sized manufacturers in 
integrating and utilizing electronic commerce technologies. By 
creating the Advisory Panel, the Committee intends this body to 
be an independent entity that can provide guidance to the 
Director of NIST in deciding the best programs and policies to 
implement that will be most beneficial to small and medium-
sized manufacturers. The Committee believes that the Director 
should draw heavily on the expertise of outside, private sector 
entities in creating the Advisory Panel. The preliminary report 
required by the legislation should address the needs of the 
industry and should be relied upon in drafting a more complete 
plan for future NIST activities in this area. The Committee has 
included a requirement that the Advisory Panel include a three-
year planning document for NIST in its final report. The 
Committee believes it is important for NIST to have a solid 
plan in place before moving forward with any initiatives to 
help small and medium-sized manufacturers in electronic 
commerce.

Section 103. Electronic Commerce Pilot Program

    Allows the NIST MEP program, in conjunction with the Small 
Business Administration, to establish a pilot program to assist 
small and medium-sized manufacturers and other businesses in 
integrating and utilizing electronic technologies and business 
practices. Requires the program to be implemented through a 
competitive grants program to be awarded among the existing MEP 
Regional Centers. Directs the MEP program to consult with the 
Advisory Panel and utilize the Advisory Panel's reports.
            Committee views
    The purpose of the pilot program is to create a testbed for 
different practices and ideas to determine which work best. The 
pilot program should take into account the regional needs of 
different manufacturing sectors. Rather than put in place a 
one-size-fits-all federal program, the Committee believes the 
pilot program can be used to determine which practices work 
best in each geographic and industry sector. It is the intent 
of the Committee that no single MEP Regional Center is singled-
out for participation in the pilot program through this 
legislation, but that the program is implemented through a 
competitive awards process. The Committee does not intend, nor 
does it support, the creation of any new MEP Regional Centers 
to take part in the pilot program. The legislation does not 
authorize new federal dollars to implement the pilot program 
and it is the intent of the Committee that it be funded 
utilizing existing MEP funding.

                    Title II--Enterprise Integration


Section 201. Enterprise integration assessment and plan

    (a) Requires the Director to conduct an assessment to 
identify critical enterprise integration standards and 
implementation activities for major manufacturing industries 
underway in the U.S. Working in consultation with industry 
representatives, the Director will identify the current state 
of enterprise integration within the industry and detail the 
remaining steps to be taken in achieving enterprise 
integration. Requires the Director within 90 days after the 
date of enactment of the bill to report to Congress on these 
matters and on anticipated related NIST activities for the 
current fiscal year.
    (b) Requires the Director within 180 days after the date of 
enactment of the bill to submit a plan to Congress for 
enterprise integration for each major manufacturing industry, 
including milestones for NIST's part of the plan, and 
anticipated costs to the Government and industry by fiscal 
year. Requires that 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.
            Committee views
    Preliminary evidence indicates that adoption of electronic 
commerce based supply chains can significantly reduce business 
costs in the manufacturing industry. The Committee believes the 
assessment required in this section of the legislation will 
help to better determine the importance of enterprise 
integration and how it impacts small and medium-sized 
manufacturers. Working together with industry, the Committee 
believes NIST should develop a concrete plan before moving 
forward with any enterprise integration initiatives. The 
legislation requires, and the Committee expects, NIST to submit 
its findings to Congress and to provide an annual update to 
Congress on any activities NIST plans to undertake in a given 
fiscal year regarding enterprise integration.

Section 202. Definitions

    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 terms include related application protocols and other 
related standards.
    3. The term ``major manufacturing industry'' includes the 
aerospace, automotive, electronics, ship building, 
construction, home building, furniture, textile, and apparel 
industries and such other industries as the Director 
designates.

                          VIII. Cost Estimate

    Rule XIII, clause 3(d)(2) of the House of Representatives 
requires each committee report accompanying each bill or joint 
resolution of a public character to contain: (1) an estimate, 
made by such committee, of the costs which would be incurred in 
carrying out such bill or joint resolution in the fiscal year 
in which it is reported, and in each of the five fiscal years 
following such fiscal year (or for the authorized duration of 
any program authorized by such bill or joint resolution, if 
less than five years); (2) a comparison of the estimate of 
costs described in subparagraph (1) of this paragraph made by 
such committee with an estimate of such costs made by any 
Government agency and submitted to such committee; and (3) when 
practicable, a comparison of the total estimated funding level 
for the relevant program (or programs) with the appropriate 
levels under current law. However, House rule XIII, clause 
3(d)(3)(B) provides that this requirement does not apply when a 
cost estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 has been timely submitted 
prior to the filing of the report and included in the report 
pursuant to House rule XIII, clause 3(c)(3). A cost estimate 
and comparison prepared by the Director of the Congressional 
Budget Office under section 402 of the Congressional Budget Act 
of 1974 has been timely submitted to the Committee on Science 
prior to the filing of this report and is included in this 
report pursuant to House rule XIII, clause 3(c)(3).
    Rule XIII, clause 3(c)(2) of the House of Representatives 
requires each committee report that accompanies a measure 
providing new budget authority (other than continuing 
appropriations), new spending authority, or new credit 
authority, or changes in revenues or tax expenditures to 
contain a cost estimate, as required by section 308(a)(1) of 
the Congressional Budget Act of 1974 and, when practicable with 
respect to estimates of new budget authority, a comparison of 
the total estimated funding level for the relevant program (or 
programs) to the appropriate levels under current law. H.R. 
4429 does not contain any new budget authority, credit 
authority, or changes in revenues or tax expenditures. H.R. 
4429 does not authorize additional discretionary spending.

             IX. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 22, 2000.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on Science,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: As you requested, the Congressional 
Budget Office has prepared the enclosed cost estimate for H.R. 
4429, the Electronic Commerce Enhancement Act of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Taman 
Morris and Kathleen Gramp.
            Sincerely,
                                           Steven Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 4429--Electronic Commerce Enhancement Act of 2000

    Summary: H.R. 4429 would authorize the National Institute 
of Standards and Technology (NIST) to implement various 
initiatives related to electronic commerce. The bill would 
direct NIST to establish an advisory board on challenges facing 
small and medium-sized businesses in using electronic commerce 
technology and require that the board submit several reports 
within 18 months after enactment. The bill also would direct 
NIST to help small and medium-sized companies incorporate 
electronic commerce technologies in their business practices 
through a pilot program that would be implemented by grants to 
Manufacturing Extension Partnership (MEP) centers. Other 
provisions would direct NIST to assess standards and protocols 
for electronically integrating data among major manufacturing 
enterprises.
    CBO estimates that implementing the bill would cost $10 
million over the 2001-2005 period, assuming appropriation of 
the necessary amounts. H.R. 4429 would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply. The bill contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA) and would have no impact on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4429 is shown in the following table. 
For this estimate, CBO assumes that H.R. 4429 will be enacted 
near the start of fiscal year 2001 and that the necessary 
amounts will be appropriated each year. Estimated outlays are 
based on historical spending patterns for NIST and information 
provided by the agency. The cost of this legislation would fall 
within budget function 370 (commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2001     2002     2003     2004     2005
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level......................................        6        4        0        0        0
Estimated Outlays..................................................        1        4        3        1        1
----------------------------------------------------------------------------------------------------------------

    According to NIST, most of the activities authorized by 
this bill would be implemented in fiscal years 2001 and 2002 
and would cost a total of about $10 million. Of that total, 
about $1 million would be used in 2001 to administer both the 
advisory board and the electronic commerce pilot program. CBO 
estimates that NIST would dedicate $4 million in each of the 
fiscal years 2001 and 2002 for grants to MEP centers as part of 
the pilot program. Finally, we estimate that another $1 million 
would be needed in 2001 to evaluate standards for data 
integration among industries.
    Pay-as-you-go considerations: None.
    Integovernmental and private-sector impact: H.R. 4429 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal costs: Taman Morris and 
Kathleen Gramp; impact on State, local, and tribal governments: 
Victoria Heid Hall; impact on the private sector: Lauren Marks.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                  X. compliance with public law 104-4

    H.R. 4429 contains no unfunded mandates.

          XI. committee oversight findings and recommendations

    Rule XIII, clause 3(c)(1) of the House of Representatives 
requires each committee report to include oversight findings 
and recommendations required pursuant to clause 2(b)(1) of rule 
X. The Committee on Science's oversight findings and 
recommendations are reflected in the body of this report.

    XII. Oversight findings and recommendations by the committee on 
                           government reform

    Rule XIII, clause 3(c)(4) of the House of Representatives 
requires each committee report to contain a summary of the 
oversight findings and recommendations made by the House 
Government Reform Committee pursuant to clause 4(c)(2) of rule 
X, whenever such findings and recommendations have been 
submitted to the Committee in a timely fashion. The Committee 
on Science has received no such findings or recommendations 
from the Committee on Government Reform.

                XIII. Constitutional authority statement

    Rule XIII, clause 3(d)(1) of the House of Representatives 
requires each report of a committee on a bill or joint 
resolution of a public character to include a statement citing 
the specific powers granted to the Congress in the Constitution 
to enact the law proposed by the bill or joint resolution. 
Article I, section 8 of the Constitution of the United States 
grants Congress the authority to enact H.R. 4429.

               XIV. Federal advisory committee statement

    The functions of the advisory committee established by H.R. 
4429 are not currently being nor could they be performed by one 
or more agencies or by enlarging the mandate of another 
existing advisory committee.

                  XV. Congressional accountability act

    The Committee finds that H.R. 4429 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 (Public Law 104-1).

      XVI. Statement on preemption of State, Local, or Tribal law

    This bill is not intended to preempt any state, local, or 
tribal law.

      XVII. Changes in existing law made by the bill, as reported

    Clause 3 of rule XIII of the Rules of the House of 
Representatives requires that changes in existing law made by 
the bill, as reported, be included in the report.
    This bill makes no direct amendments to any Act.

                    XVIII. Committee Recommendations

    On July 26, 2000, a quorum being present, the Committee on 
Science favorably reported H.R. 4299, The Electronic Commerce 
Enhancement Act of 2000, by a voice vote, and recommends its 
enactment.

             XIX. Proceedings of the Full Committee markup



                            BUSINESS MEETING

                        WEDNESDAY, JULY 26, 2000

                          House of Representatives,
                                      Committee on Science,
                                                    Washington, DC.
    The committee met, pursuant to call, at 2:04 p.m. in room 
2318, Rayburn House Office Building, Hon. F. James 
Sensenbrenner, Jr. [chairman of the committee] presiding.
    Chairman Sensenbrenner. The Committee on Science will come 
to order.
    The Chair notes the presence of a working quorum. And 
pursuant to notice, the Committee on Science will consider 
today the following measures: First, H.R. 2413, the Computer 
Security Enhancement Act of 1999, as amended by the 
Subcommittee on Technology; H.R. 4429, the Electronic Commerce 
Enhancement Act of 2000; and H.R. 4271, the National Science 
Education Act.
    At this time, I ask unanimous consent for the authority to 
recess at any point. And without objection, it is so ordered.
    We will now consider H.R. 2413, the Computer Security 
Enhancement Act of 1999, as amended by the Subcommittee on 
Technology. And the Subcommittee Chair is not here.
    So, we will try the next bill, which is H.R. 4429, the 
Electronic Commerce Enhancement Act of 2000. Does the gentleman 
from Texas move to adjourn?
    Mr. Hall. It would be a good idea. [Laughter.]
    Chairman Sensenbrenner. Well, let's do H.R. 4429. This 
should go fairly quickly. Yes? You are asking me to put aside a 
Democratic bill for a Republican bill? Let's do the Democratic 
bill, okay.
    This bill was introduced by the Ranking Member of the 
Technology Subcommittee, Mr. Barcia, and the Chairman of the 
Energy and Environment Subcommittee, Mr. Calvert, on May 11th 
of this year. The legislation addresses the needs of small and 
medium-sized manufacturers in implementing the successful 
electronic commerce business practices. I would ask unanimous 
consent that all members may submit opening statements at this 
point.
    [A copy of the bill H.R. 4429 follows:]
    
    
    Chairman Sensenbrenner. And at this time, I yield to the 
gentleman from Texas, Mr. Hall, for whatever statement he would 
like to make.
    Mr. Hall. Mr. Chairman, thank you. I also consider H.R. 
4429 to be very important legislation and wish to compliment 
Congressman Barcia for his persistence in focusing the 
Committee on the impacts that electronic commerce is having on 
small business throughout our country.
    Competing as a small businessman can be very tough under 
the best of circumstances, and it gets just that much harder 
during times of rapid change. Today, computers and e-commerce 
are turning many small businessmen's world on its head. And I 
compliment Mr. Barcia and his cosponsors for writing 
legislation to make sure that the small businesses have the 
information and expertise available to them through the 
Manufacturing Extension Program to make intelligent decisions 
as they move into the Internet.
    Congressmen Barcia, Rivers, and Stabenow have also 
introduced H.R. 4906 this week that aggressively addresses 
another small business problem that is just around the corner. 
According to recent testimony before the Technology 
Subcommittee, 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 vital manufacturing enterprises.
    H.R. 4906 provides for a meaningful U.S. role in the 
development of these standards and for developing the tools 
that small businesses will need to participate in this new way 
of doing business. Two subsections from H.R. 4906 are being 
added to the bill before us, and we appreciate the Chairman's 
willingness to work with us further on this important problem 
as the legislation progresses.
    At this time, I yield the balance of my time to Mr. Barcia.
    [The prepared statement of Mr. Hall follows:]

                    Statement of Hon. Ralph M. Hall

    Mr. Chairman, I also consider H.R. 4429 to be very 
important legislation and wish to complement Congressman Barcia 
for his persistence in focusing this Committee on the impacts 
that electronic commerce is having on small businesses 
throughout this country. Competing as a small businessman can 
be tough under the best of circumstances and it gets just that 
much harder during times of rapid change. Today, computers and 
e-commerce are turning many small businessmen's worlds on their 
heads.
    I complement Mr. Barcia and his cosponsors for writing 
legislation to make sure that small business have the 
information and expertise available to them through the 
Manufacturing Extension Program to make intelligent decisions 
as they move onto the Internet.
    Congressmen Barcia, Rivers, and Stabenow also introduced 
H.R. 4906 this week that aggressively addressed another small 
business problem that is just around the corner. According to 
recent testimony before the Technology Subcommittee, 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 
developing the tools that small business will need to 
participate in this new way of doing business. Two subsections 
from H.R. 4906 are being added to the bill before us. We 
appreciate the Chairman's willingness to work with us further 
on this important problem as the legislation progresses.
    I yield the balance of my time to Mr. Barcia.

    Mr. Barcia. Thank you very much, Ranking Member Hall. I 
want to begin by thanking Chairman Sensenbrenner, yourself, and 
Chairwoman Morella for bringing this bill before the Committee.
    H.R. 4429, the Electronic Commerce Enhancement Act, is a 
bipartisan effort to assist small and medium-sized 
manufacturers bring their businesses on line. I introduced this 
bill, along with Representatives Calvert, Baird, Doyle, and 
Udall, earlier this year. This bill is the result of Technology 
Subcommittee hearings and a district event I held on the e-
commerce needs of small and medium-sized manufacturers.
    As large companies move their business transactions on 
line, small manufacturers must go on line, too. 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 our small 
businesses with the information and knowledge they need to make 
these business decisions. This bill builds upon the successful 
Manufacturing Extension Partnership, or MEP program. The bill 
authorizes the establishment of an advisory panel to determine 
the e-commerce needs of small businesses. The panel will then 
report to Congress on its findings and will prepare a planning 
document for the MEP to follow. The MEP, working with this 
advisory panel, will begin to establish a pilot program at MEP 
centers. The goal of this pilot program is to allow MEP centers 
to provide small manufacturers with the information they need 
to make informed purchases of e-commerce products and services.
    I want to thank Chairwoman Morella for the series of 
hearings she has held on e-commerce during the past year. These 
hearings focused my attention on this issue and highlighted the 
challenges facing our small manufactures. I believe this bill 
represents sound and reasonable policy and builds upon the 
successful track record of the Manufacturing Extension 
Partnership program, and I urge my colleagues to support it. 
Thank you very much, Mr. Chairman.
    Chairman Sensenbrenner. The gentleman from Texas has 40 
seconds left. Do you yield back?
    Mr. Hall. Unless the gentleman wants to make a motion about 
his bill.
    Chairman Sensenbrenner. Well, we have got one amendment we 
have got to offer.
    Mr. Hall. I yield back my time. Thank you, Mr. Chairman.
    Chairman Sensenbrenner. The one amendment the Chair is 
aware of is an amendment in the nature of a substitute by Mrs. 
Morella and Mr. Barcia. And at this time, the Chair recognizes 
the gentlewoman from Maryland in order to offer her substitute.
    Mrs. Morella. Thank you, Mr. Chairman. I have an amendment 
at the desk.
    Chairman Sensenbrenner. The Clerk will report the 
amendment.
    The Clerk. Amendment in the nature of a substitute to H.R. 
4429, offered by Mrs. Morella and Mr. Barcia.
    Mrs. Morella. Mr. Chairman, I move that the amendment be 
considered as read.
    Chairman Sensenbrenner. Without objection.
    Mrs. Morella. Thank you.
    Chairman Sensenbrenner. The gentlewoman is recognized for 
five minutes.
    Mrs. Morella. Thank you. I want to thank the Chairman for 
convening this markup of H.R. 4429, the Electronic Commerce 
Enhancement Act of 2000. I want to thank my colleague, Mr. 
Barcia, for the work that he has done and for introducing this 
important legislation, and the other cosponsors, and this 
Committee, and our Technology Subcommittee.
    As amended by the substitute, H.R. 4429 seeks to help small 
and medium-sized manufacturers from across the country to fully 
integrate and utilize electronic commerce in their everyday 
business practices. Last fall, the Technology Subcommittee 
convened a hearing looking at the challenges and the 
opportunities facing small and medium-sized manufacturers in 
the coming decade, and implementing successful electronic 
commerce strategies emerged as one of the industry's top 
priorities. We had a number of small manufacturers testify as 
well as the president of the National Association of 
Manufacturers, Mr. Jerry Jazonowski. They all agreed that we 
need to address this issue and that NIST can play an important 
role in helping to achieve this goal.
    So I urge my colleagues to join in supporting the 
Electronic Commerce Enhancement Act of 2000, this substitute 
amendment.
    I yield back, Mr. Chairman.
    [The amendment in the nature of a substitute offered by 
Mrs. Morella follows:]
    Chairman Sensenbrenner. Any further discussion on the 
amendment?
    The gentleman from Michigan, Mr. Barcia?
    Mr. Barcia. Mr. Chairman, I want to just take----
    Chairman Sensenbrenner. You are recognized for five 
minutes.
    Mr. Barcia. I certainly won't take that long. I just want 
to thank Chairwoman Morella and yourself for working together 
on this amendment and I urge its adoption. I think it is a 
great improvement to the bill, and I thank both of you.
    Chairman Sensenbrenner. Does the gentleman yield back.
    Is there further discussion on the amendment?
    [No response.]
    Chairman Sensenbrenner. Hearing none, all those in favor of 
the amendment in the nature of a substitute will signify by 
saying aye.
    [Chorus of ayes.]
    Chairman Sensenbrenner. Opposed, no.
    [No response.]
    Chairman Sensenbrenner. The ayes appear to have it. The 
ayes have it, and the amendment is agreed to.
    Are there any further amendments to the bill?
    [No response.]
    Chairman Sensenbrenner. If not, the Chair recognizes the 
gentleman from Michigan to make a motion.
    Mr. Barcia. Yes, Mr. Chairman, I move that the Committee 
favorably report H.R. 4429, as amended, to the House with the 
recommendation that the bill as amended do pass.
    Further, I move that staff be instructed to prepare the 
legislative report and make necessary technical and conforming 
amendments and that the Chairman take all necessary steps to 
bring the bill before the House for consideration.
    Chairman Sensenbrenner. Is there any discussion on the 
motion of the gentleman from Michigan?
    [No response.]
    Chairman Sensenbrenner. If not, the Chair notes the 
presence of a reporting quorum. Those in favor will signify by 
saying aye.
    [Chorus of ayes.]
    Chairman Sensenbrenner. Opposed, no.
    [No response.]
    Chairman Sensenbrenner. The ayes appear to have it. The 
ayes have it, and the bill is reported.
    Without objection, the Chair will be given authority to 
move to conference pursuant to Rule 20 of the Rules of the 
House of Representatives, Rule 22, excuse me.
    Without objection, the staff will be given the authority to 
make any necessary technical and conforming changes. And 
pursuant to the rules, any member or the minority will have two 
calendar days in which to submit additional dissenting or 
supplemental views for the Committee Report.

 Committee on Science Full Committee Markup, July 26, 2000--Amendment 
   Roster for H.R. 4429, Electronic Commerce Enhancement Act of 2000

    No. and Sponsor, description, results:
    1. Mrs. Morella and Mr. Barcia, amendment in the nature of 
a substitute to H.R. 4429, adopted by a voice vote.
                                ------                                


 Amendment in the Nature of a Substitute to H.R. 4429 Offered by Mrs. 
                         Morella and Mr. Barcia

  Strike all after the enacting clause and insert the following:

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 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.
      Amend the title so as to read: ``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.

                                  
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