To promote the manufacturing industry in the United States by establishing an Assistant Secretary for Manufacturing within the Department of Commerce, an Interagency Manufacturing Task Force, and a Small Business Manufacturing Task Force, and for other purposes.

November 25, 2003

Ms. SNOWE (for herself and Mr. VOINOVICH) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

To promote the manufacturing industry in the United States by establishing an Assistant Secretary for Manufacturing within the Department of Commerce, an Interagency Manufacturing Task Force, and a Small Business Manufacturing Task Force, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Small Manufacturers Assistance, Recovery, and Trade Act' or `SMART Act'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I--MANUFACTURING AND TRADE REPRESENTATIVES AND TASK FORCE

Sec. 101. Assistant Secretary of Commerce for Manufacturing.

Sec. 102. Interagency Manufacturing Task Force.

Sec. 103. Assistant United States Trade Representative for Small Business.

TITLE II--SMALL BUSINESS ADMINISTRATION

Subtitle A--Manufacturing and Entrepreneurial Development

Sec. 201. Small Business Manufacturing Task Force.

Sec. 202. Entrepreneurial development programs and services.

Subtitle B--Small Business Loan Programs

Sec. 211. Increased loan amounts for exporters.

Sec. 212. Debenture size.

Sec. 213. Job creation or retention standards.

Sec. 214. Clarification of maximum surety bond guarantee.

Subtitle C--International Trade

Sec. 221. Office of International Trade.

TITLE I--MANUFACTURING AND TRADE REPRESENTATIVES AND TASK FORCE

SEC. 101. ASSISTANT SECRETARY OF COMMERCE FOR MANUFACTURING.

(a) ESTABLISHMENT- There shall be in the Department of Commerce, in addition to the Assistant Secretaries of Commerce provided by law as of the date of enactment of this Act, 1 additional Assistant Secretary of Commerce, to be known as the Assistant Secretary of Commerce for Manufacturing, who shall--

(1) be appointed by the President, by and with the advice and consent of the Senate; and

(2) be compensated at the rate of pay provided for under level IV of the Executive Schedule (5 U.S.C. 5315).

(b) DUTIES- The Assistant Secretary of Commerce for Manufacturing shall--

(1) identify and address the concerns of manufacturers;

(2) represent and advocate for the interests of United States manufacturers;

(3) aid in the development of policies that promote the vitality and expansion of United States manufacturing;

(4) review policies that adversely impact manufacturers;

(5) identify and address issues that are unique to small manufacturers and those that are exacerbated by the size or limited capital of small manufacturers; and

(6) perform such other duties as the Secretary of Commerce may prescribe.

(c) REPORTING REQUIREMENTS- The Assistant Secretary of Commerce for Manufacturing shall submit to Congress an annual report that contains--

(1) an overview of the state of the manufacturing sector in the United States;

(2) a forecast of the future state of the manufacturing sector in the United States; and

(3) an analysis of current and significant laws, regulations, and policies that adversely impact the manufacturing sector in the United States.

(d) TECHNICAL AND CONFORMING AMENDMENT- Section 5315 of title 5, United States Code, is amended by striking `Assistant Secretaries of Commerce (11)' and inserting `Assistant Secretaries of Commerce (12)'.

SEC. 102. INTERAGENCY MANUFACTURING TASK FORCE.

(a) ESTABLISHMENT- There is established an Interagency Manufacturing Task Force (referred to in this section as the `IMTF') for the purposes of--

(1) maximizing the efforts and resources of Federal agencies in assisting the manufacturing industry;

(2) improving interagency cooperation in their efforts to assist the manufacturing industry;

(3) encouraging additional efforts to assist United States manufacturers;

(4) coordinating the agencies' efforts to assist the manufacturing industry; and

(5) identifying and addressing collective manufacturing concerns.

(b) MEMBERSHIP- The IMTF shall be composed of 14 members, including--

(1) the Assistant Secretary of Commerce for Manufacturing, who shall serve as chair of the IMTF;

(2) a representative of the Department of the Treasury, to be designated by the Secretary of the Treasury;

(3) a representative of the Department of Defense, to be designated by the Secretary of Defense;

(4) a representative of the Department of Education, to be designated by the Secretary of Education;

(5) a representative of the Department of Energy, to be designated by the Secretary of Energy;

(6) a representative of the Department of Health and Human Services, to be designated by the Secretary of Health and Human Services;

(7) a representative of the Department of Homeland Security, to be designated by the Secretary of Homeland Security;

(8) a representative of the Department of Labor, to be designated by the Secretary of Labor;

(9) a representative of the Environmental Protection Agency, to be designated by the Administrator of the Environmental Protection Agency;

(10) a representative of the Office of the United States Trade Representative, to be designated by the United States Trade Representative;

(11) a representative of the Small Business Administration, to be designated by the Administrator of the Small Business Administration;

(12) a representative of the Executive Office of the President, to be designated by the President; and

(13) 2 additional members, to be designated by the President.

(c) DUTIES- Under the direction of the Assistant Secretary of Commerce for Manufacturing, the IMTF shall--

(1) provide advice and counsel to the President and Congress on matters of importance to manufacturers;

(2) monitor, coordinate, and promote the plans, programs, and operations of the departments and agencies of the Federal Government that may contribute to the growth of the United States manufacturing industry;

(3) develop and promote new public sector initiatives, policies, programs, and plans designed to foster the manufacturing industry;

(4) review, monitor, and coordinate plans and programs developed in the public sector, which affect the ability of manufacturers to obtain capital, credit, and access to technology;

(5) identify and address regulations that are needlessly burdensome on manufacturers; and

(6) design a comprehensive plan for a joint public-private sector effort to facilitate the growth and development of the United States manufacturing industry.

(d) MEETINGS-

(1) FREQUENCY- The IMTF shall meet not less than 4 times per year to perform the duties under subsection (c).

(2) QUORUM- A majority of the members of the IMTF shall constitute a quorum to approve recommendations or reports.

(e) PERSONNEL MATTERS-

(1) COMPENSATION OF MEMBERS-

(A) FEDERAL EMPLOYEES- Each member of the IMTF who is an officer or employee of the Federal Government shall serve without compensation in addition to that received for services rendered as an officer or employee of the United States.

(B) OTHER MEMBERS- Each member of the IMTF who is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent for level IV of the Executive Schedule (5 U.S.C. 5315) for each day (including travel time) during which such member is engaged in the performance of the duties of the IMTF.

(2) TRAVEL EXPENSES- The members of the IMTF shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of Federal agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular place of business in the performance of services for the IMTF.

(3) DETAIL OF FEDERAL EMPLOYEES- Any employee of the Federal Government may be detailed to the IMTF without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.

(f) REPORTS-

(1) FINDINGS AND RECOMMENDATIONS- Not later than 1 year after the date of enactment of this Act, and annually thereafter, the IMTF shall submit a report containing the findings and recommendations described in paragraphs (1) through (5) of subsection (c) to--

(A) the President;

(B) the Committee on Small Business and Entrepreneurship of the Senate; and

(C) the Committee on Small Business of the House of Representatives.

(2) GROWTH PLAN- Not later than 1 year after the date of enactment of this Act, the Assistant Secretary of Commerce for Manufacturing shall submit the plan prepared pursuant to subsection (c)(6) to--

(A) the President;

(B) the Committee on Small Business and Entrepreneurship of the Senate; and

(C) the Committee on Small Business of the House of Representatives.

SEC. 103. ASSISTANT UNITED STATES TRADE REPRESENTATIVE FOR SMALL BUSINESS.

Section 141(c) of the Trade Act of 1974 (19 U.S.C. 2171(c)) is amended by adding at the end the following:

`(6)(A) There is established within the Office the position of Assistant United States Trade Representative for Small Business, which shall be appointed by the United States Trade Representative.

`(B) The Assistant United States Trade Representative for Small Business shall--

`(i) promote the trade interests of small businesses, including manufacturers;

`(ii) identify and address foreign trade barriers that impede small business exporters;

`(iii) enforce existing trade agreements beneficial to small businesses;

`(iv) maintain an open line of communication with the Small Business Administration concerning small business trade issues;

`(v) ensure that small business concerns are considered in trade negotiations and agreements; and

`(vi) perform such other duties as the United States Trade Representative may direct.

`(C) The Assistant United States Trade Representative for Small Business shall be paid at the level of a member of the Senior Executive Service with equivalent time and service.'.

TITLE II--SMALL BUSINESS ADMINISTRATION

Subtitle A--Manufacturing and Entrepreneurial Development

SEC. 201. SMALL BUSINESS MANUFACTURING TASK FORCE.

(a) ESTABLISHMENT- The Administrator of the Small Business Administration (referred to in this subtitle as the `Administrator') shall establish a Small Business Manufacturing Task Force (referred to in this section as the `Task Force') to address the concerns of small manufacturers.

(b) MEMBERSHIP-

(1) IN GENERAL- The Task Force shall be composed of a representative from--

(A) the Office of Capital Access;

(B) the Office of Entrepreneurial Development;

(C) the Office of Administration and Management;

(D) the Office of Government Contracting and Business Development; and

(E) any other employee of the Small Business Administration, on a temporary basis, as determined necessary by the Administrator to carry out the goals of the Task Force.

(2) CHAIR- The Administrator shall assign a member of the Task Force to serve as chair of the Task Force.

(c) DUTIES- The Task Force shall--

(1) evaluate and identify whether programs and services are sufficient to serve the needs of small manufacturers;

(2) ensure that the Small Business Administration implements the small business manufacturing training programs established under section 202;

(3) actively promote the programs and services of the Small Business Administration that serve small manufacturers; and

(4) identify and study the unique conditions facing small manufacturers and develop and propose policy initiatives to support and assist small manufacturers.

(d) MEETINGS-

(1) FREQUENCY- The Task Force shall meet not less than 4 times per year, and more frequently if necessary to perform its duties.

(2) QUORUM- A majority of the members of the Task Force shall constitute a quorum to approve recommendations or reports.

(e) PERSONNEL MATTERS-

(1) COMPENSATION OF MEMBERS- Each member of the Task Force shall serve without compensation in addition to that received for services rendered as an officer or employee of the United States.

(2) DETAIL OF SBA EMPLOYEES- Any employee of the Small Business Administration may be detailed to the Task Force without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.

(f) REPORT- Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Task Force shall submit a report containing the findings and recommendations of the task force to--

(1) the President;

(2) the Committee on Small Business and Entrepreneurship of the Senate; and

(3) the Committee on Small Business of the House of Representatives.

SEC. 202. ENTREPRENEURIAL DEVELOPMENT PROGRAMS AND SERVICES.

(a) MANUFACTURING OUTREACH AND TRAINING PROGRAMS- The Office of Entrepreneurial Development of the Small Business Administration shall develop new outreach and training programs for small manufacturers and small businesses in the manufacturing supply chain, in partnership with 1 or more of the following:

(1) The Manufacturing Extension Partnership.

(2) Community economic development organizations.

(3) Small Business Development Centers.

(4) The Service Corps of Retired Executives.

(5) Women's Business Centers.

(b) REPORTING REQUIREMENT- The Small Business Administration shall include `manufacturing' as a category on the scorecard that tracks the goals of the Small Business Administration on its annual performance report to Congress.

(c) MANUFACTURING WORKSHOPS- The Office of Entrepreneurial Development of the Small Business Administration, in consultation with manufacturing and economic development organizations, shall develop workshops to be conducted by district offices, in conjunction with the entities listed in paragraphs (1) through (5) of subsection (a), addressing--

(1) product design and testing;

(2) the patent process;

(3) prototype demonstrations;

(4) product production;

(5) market research; and

(6) business financing.

(d) SCORE- The Service Corps of Retired Executives shall--

(1) make their counseling services available to small manufacturers and exporters through their on-line counseling services and community-based offices;

(2) recruit counselors with manufacturing and international trade expertise; and

(3) develop additional partnerships with manufacturing and exporting organizations.

(e) ENTREPRENEURIAL DEVELOPMENT PROGRAM IMPROVEMENTS- The Office of Entrepreneurial Development of the Small Business Administration shall develop programs and services to strengthen small business vendors and suppliers that participate in the manufacturing supply chain.

(f) SIMPLIFIED REPORTING REQUIREMENTS- The Small Business Administration shall review and simplify, as appropriate, its reporting requirements for the Small Business Development Centers, the Service Corps of Retired Executives, and Women's Business Centers so that these organizations can maximize the time spent assisting their clients.

(g) DISTRICT OFFICES- The Small Business Administration shall provide district offices with adequate resources, including budget allocations for travel and materials used to conduct outreach and training activities.

Subtitle B--Small Business Loan Programs

SEC. 211. INCREASED LOAN AMOUNTS FOR EXPORTERS.

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended--

(1) in paragraph (3)--

(A) in subparagraph (A), by inserting before the semicolon at the end the following: `and paragraph (14)'; and

(B) in subparagraph (B), by striking `$1,250,000' and inserting `$1,300,000'; and

(2) in paragraph (14), by adding at the end the following:

`(D) The total amount of financings under this paragraph that are outstanding and committed (by participation or otherwise) to the borrower from the business loan and investment fund established under this Act may not exceed $1,300,000 and the gross loan amount under this paragraph may not exceed $2,600,000.'.

SEC. 212. DEBENTURE SIZE.

Section 502(2) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)) is amended--

(1) by striking `$1,300,000' and inserting `$2,000,000'; and

(2) by inserting before the period at the end the following: `, and loans for which the loan proceeds will be directed toward manufacturing projects, which shall be limited to $4,000,000 for each such identifiable small business concern'.

SEC. 213. JOB CREATION OR RETENTION STANDARDS.

Section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 695) is amended by adding at the end the following:

`(e) JOB CREATION OR RETENTION FOR MANUFACTURING PROJECTS- A manufacturing project being funded by the debenture is deemed to satisfy the job creation or retention requirement under subsection (d)(1) if the project creates or retains 1 job opportunity for every $100,000 guaranteed by the Administration.'.

SEC. 214. CLARIFICATION OF MAXIMUM SURETY BOND GUARANTEE.

Section 411(a)(1) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended by striking `contract up to' and inserting `total work order or contract amount at the time of bond execution that does not exceed'.

Subtitle C--International Trade

SEC. 221. OFFICE OF INTERNATIONAL TRADE.

Section 22 of the Small Business Act (15 U.S.C. 649) is amended--

(1) by striking `SEC. 22' and inserting the following:

`SEC. 22. OFFICE OF INTERNATIONAL TRADE.';

(2) in subsection (a)--

(A) by inserting `ESTABLISHMENT- ' after `(a)'; and

(B) by inserting `(referred to in this section as the `Office'),' after `Trade';

(3) in subsection (b)--

(A) by striking `The Office' and inserting the following:

`(b) TRADE DISTRIBUTION NETWORK- The Office, including United States Export Assistance Centers (referred to as `one-stop shops' in section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)) and as `Export Centers' in this section),'; and

(B) by amending paragraph (1) to read as follows:

`(1) assist in maintaining a distribution network using regional and local offices of the Administration, the Small Business Development Center network, the Women's Business Center network, and Export Centers for--

`(A) trade promotion;

`(B) trade finance;

`(C) trade adjustment;

`(D) trade remedy assistance; and

`(E) trade data collection.';

(4) in subsection (c)--

(A) by redesignating paragraphs (1) through (8) as paragraphs (2) through (9);

(B) by inserting before paragraph (2), as redesignated, the following:

`(1) establish annual goals within the Office relating to--

`(A) enhancing the exporting ability of small business concerns and small manufacturers;

`(B) facilitating technology transfers;

`(C) enhancing programs and services to assist small business concerns and small manufacturers to compete effectively and efficiently against foreign entities;

`(D) increasing the access to capital by small business concerns;

`(E) disseminating information concerning Federal, State, and private programs and initiatives;

`(F) ensuring that the interests of small business concerns are adequately represented in trade negotiations;';

(C) in paragraph (2), as redesignated, by striking `mechanism for' and all that follows through `(D)' and inserting the following: `mechanism for--

`(A) identifying subsectors of the small business community with strong export potential;

`(B) identifying areas of demand in foreign markets;

`(C) prescreening foreign buyers for commercial and credit purposes; and

`(D)'; and

(D) in paragraph (9), as redesignated--

(i) by striking `full-time export development specialists to each Administration regional office and assigning';

(ii) by striking `office. Such specialists' and inserting `office and providing each Administration regional office with a full-time export development specialist, who';

(iii) in subparagraph (D), by striking `and' at the end;

(iv) in subparagraph (E), by striking the period at the end and inserting a semicolon; and

(v) by adding at the end the following:

`(F) participate jointly with employees of the Office in an annual training program that focuses on current small business needs for exporting; and

`(G) jointly develop and conduct training programs for exporters and lenders in cooperation with the United States Export Assistance Centers, the Department of Commerce, Small Business Development Centers, and other relevant Federal agencies.';

(5) in subsection (d)--

(A) by inserting `EXPORT FINANCING PROGRAMS- ' after `(d)';

(B) by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E); and

(C) by striking `To accomplish this goal, the Office shall work' and inserting `To accomplish this goal, the Office shall--

`(1) designate at least 1 individual within the Administration as a trade financial specialist to oversee the international loan programs and assist Administration employees with trade finance issues; and

`(2) work';

(6) in subsection (e), by inserting `TRADE REMEDIES- ' after `(e)';

(7) by amending subsection (f) to read as follows:

`(f) REPORTING REQUIREMENT- The Office shall submit an annual report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives that contains--

`(1) a description of the progress of the Office in implementing the requirements under this section;

`(2) the destinations and benefits to the Administration and to small business concerns of travel by Office staff; and

`(3) a description of the participation by the Office in trade negotiations.';

(8) in subsection (g),byinserting`STUDIES- ' after `(g)'; and

(9) by adding at the end the following:

`(h) EXPORT ASSISTANCE CENTERS-

`(1) ADDITIONAL CENTERS- The Administration, in accordance with the March 29, 2002, agreement with the Department of Commerce and the Export-Import Bank, shall assign not less than 4 additional employees to Export Centers during each of the fiscal years 2004 through 2006.

`(2) PLACEMENT- The Administration shall use the resource allocation methodology, used by the Department of Commerce as of the date of enactment of this subsection, to strategically assign Administration employees to all Export Centers based on the needs of exporters.

`(3) GOALS- The Office shall work with the Department of Commerce and the Export-Import Bank to establish shared annual goals for the Export Centers.

`(4) OVERSIGHT- The Office shall designate an individual within the Administration to oversee all activities conducted by Administration employees assigned to Export Centers.'.

END