§ 278k. Regional centers for the transfer of manufacturing technology

(a) Creation and support of Centers; affiliations; merit review in determining awards; objectives The Secretary, through the Director and, if appropriate, through other officials, shall provide assistance for the creation and support of regional centers for the transfer of manufacturing technology (hereafter in this chapter referred to as the “Centers”). Such centers Global marketplace projectsIn making awards under this subsection, the Director, in consultation with the Manufacturing Extension Partnership Advisory Board and the Secretary of Commerce, may—

(A) take into consideration whether an application has significant potential for enhancing the competitiveness of small and medium-sized United States manufacturers in the global marketplace; and

(B) give a preference to applications for such projects to the extent the Director deems appropriate, taking into account the broader purposes of this subsection.

(7)³ Duration

Awards under this section shall last no longer than 3 years.

(8) Eligible participants

In addition to manufacturing firms eligible to participate in the Centers program, awards under this subsection may be used by the Centers to assist small- or medium-sized construction firms. Centers may be reimbursed under the program for working with such eligible participants.

(9) Authorization of appropriations

In addition to any amounts otherwise authorized or appropriated to carry out this section, there are authorized to be appropriated to the Secretary of Commerce $7,000,000 for each of the fiscal years 2011 through 2013 to carry out this subsection.

(g) Innovative services initiative

(1) Establishment The Director shall establish, within the Centers program under this section, an innovative services initiative to assist small- and medium-sized manufacturers in—

(A) reducing their energy usage, greenhouse gas emissions, and environmental waste to improve profitability;

(B) accelerating the domestic commercialization of new product technologies, including components for renewable energy and energy efficiency systems; and

(C) identification of and diversification to new markets, including support for transitioning to the production of components for renewable energy and energy efficiency systems.

(2) Market demand

The Director may not undertake any activity to accelerate the domestic commercialization of a new product technology under this subsection unless an analysis of market demand for the new product technology has been conducted.

(h) Reports

(1) In general

In submitting the 3-year programmatic planning document and annual updates under section 278i of this title, the Director shall include an assessment of the Director’s governance of the program established under this section.

(2) Criteria

In conducting the assessment, the Director shall use the criteria established pursuant to the Malcolm Baldrige National Quality Award under section 3711a(d)(1)(C) of this title.

(i) Designation

(1) Hollings Manufacturing Extension Partnership

The program under this section shall be known as the “Hollings Manufacturing Extension Partnership”.

(2) Hollings Manufacturing Extension Centers

The Regional Centers for the Transfer of Manufacturing Technology created and supported under subsection (a) shall be known as the “Hollings Manufacturing Extension Centers” (in this chapter referred to as the “Centers”).

(j) Community college defined

In this section, the term “community college” means an institution of higher education (as defined under section 1001(a) of title 20) at which the highest degree that is predominately awarded to students is an associate’s degree.

(k) Evaluation of obstacles unique to small manufacturers The Director shall—

(1) evaluate obstacles that are unique to small manufacturers that prevent such manufacturers from effectively competing in the global market;

(2) implement a comprehensive plan to train the Centers to address such obstacles; and

(3) facilitate improved communication between the Centers to assist such manufacturers in implementing appropriate, targeted solutions to such obstacles.

(Mar. 3, 1901, ch. 872, § 25, as added Pub. L. 100–418, title V, § 5121(a), Aug. 23, 1988, 102 Stat. 1433; amended Pub. L. 102–245, title I, § 105(e), Feb. 14, 1992, 106 Stat. 12; Pub. L. 105–309, § 2, Oct. 30, 1998, 112 Stat. 2935; Pub. L. 110–69, title III, § 3003, Aug. 9, 2007, 121 Stat. 587; Pub. L. 111–240, title IV, § 4226(a), Sept. 27, 2010, 124 Stat. 2598; Pub. L. 111–358, title IV, § 404(a)–(f)(1), (3), (h), (i), title VII, § 703, Jan. 4, 2011, 124 Stat. 4001–4003, 4042.)

References In Text

References in Text

The Federal Advisory Committee Act, referred to in subsec. (e)(4), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770, which is set out in the Appendix to Title 5, Government Organization and Employees.

Amendments

Amendments

2011—Subsec. (a). Pub. L. 111–358, § 404(f)(3)(A), substituted “regional centers for the transfer of manufacturing technology” for “Regional Centers for the Transfer of Manufacturing Technology” in introductory provisions.

Subsec. (a)(6). Pub. L. 111–358, § 404(a), added par. (6).

Subsec. (c)(7), (8). Pub. L. 111–358, § 404(d), added pars. (7) and (8).

Subsec. (e)(4). Pub. L. 111–358, § 404(e), amended par. (4) generally. Prior to amendment, text read as follows: “In discharging its duties under this subsection, the MEP Advisory Board shall function solely in an advisory capacity, in accordance with the Federal Advisory Committee Act.”

Subsec. (f)(3). Pub. L. 111–358, § 703(a), substituted “to add capabilities to the MEP program, including the development of” for “to develop” and “Centers may be reimbursed for costs incurred under the program. These themes—” for “These themes shall be related to projects associated with manufacturing extension activities, including supply chain integration and quality management, and including the transfer of technology based on the technological needs of manufacturers and available technologies from institutions of higher education, laboratories, and other technology producing entities, or extend beyond these traditional areas.” and added subpars. (A) to (C).

Pub. L. 111–358, § 404(i), substituted “Director of the Hollings MEP program,” for “Director of the Centers program,”.

Subsec. (f)(5). Pub. L. 111–358, § 703(b), amended par. (5) generally. Prior to amendment, text read as follows: “Awards under this subsection shall be peer reviewed and competitively awarded. The Director shall select proposals to receive awards—

“(A) that utilize innovative or collaborative approaches to solving the problem described in the competition;

“(B) that will improve the competitiveness of industries in the region in which the Center or Centers are located; and

“(C) that will contribute to the long-term economic stability of that region.”

Subsec. (f)(7). Pub. L. 111–358, § 703(c), added par. (7) relating to duration.

Subsec. (f)(8), (9). Pub. L. 111–358, § 703(c), added pars. (8) and (9).

Subsec. (g). Pub. L. 111–358, § 404(b), added subsec. (g).

Subsec. (h). Pub. L. 111–358, § 404(c), added subsec. (h).

Subsec. (i). Pub. L. 111–358, § 404(f)(1), added subsec. (i).

Subsec. (j). Pub. L. 111–358, § 404(f)(3)(B), added subsec. (j).

Subsec. (k). Pub. L. 111–358, § 404(h), added subsec. (k).

2010—Subsec. (f)(7). Pub. L. 111–240 added par. (7) relating to global marketplace projects.

2007—Subsec. (c)(3). Pub. L. 110–69, § 3003(a), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “Any nonprofit institution, or group thereof, or consortia of nonprofit institutions, including entities existing on August 23, 1988, may submit to the Secretary an application for financial support under this subsection, in accordance with the procedures established by the Secretary and published in the Federal Register under paragraph (2). In order to receive assistance under this section, an applicant shall provide adequate assurances that it will contribute 50 percent or more of the proposed Center’s capital and annual operating and maintenance costs for the first three years and an increasing share for each of the last three years. Each applicant shall also submit a proposal for the allocation of the legal rights associated with any invention which may result from the proposed Center’s activities.”

Subsec. (c)(5). Pub. L. 110–69, § 3003(b), inserted “A Center that has not received a positive evaluation by the evaluation panel shall be notified by the panel of the deficiencies in its performance and shall be placed on probation for one year, after which time the panel shall reevaluate the Center. If the Center has not addressed the deficiencies identified by the panel, or shown a significant improvement in its performance, the Director shall conduct a new competition to select an operator for the Center or may close the Center.” after “at declining levels.”

Subsec. (d). Pub. L. 110–69, § 3003(c), added subsec. (d) and struck out former subsec. (d). Text of former subsec. (d) read as follows: “In addition to such sums as may be authorized and appropriated to the Secretary and Director to operate the Centers program, the Secretary and Director also may accept funds from other Federal departments and agencies for the purpose of providing Federal funds to support Centers. Any Center which is supported with funds which originally came from other Federal departments and agencies shall be selected and operated according to the provisions of this section.”

Subsec. (e). Pub. L. 110–69, § 3003(d), added subsec. (e).

Subsec. (f). Pub. L. 110–69, § 3003(e), added subsec. (f).

1998—Subsec. (c)(5). Pub. L. 105–309 substituted “. After the sixth year, a Center may receive additional financial support under this section if it has received a positive evaluation through an independent review, under procedures established by the Institute. Such an independent review shall be required at least every two years after the sixth year of operation. Funding received for a fiscal year under this section after the sixth year of operation shall not exceed one third of the capital and annual operating and maintenance costs of the Center under the program.” for “, which are designed to ensure that the Center no longer needs financial support from the Institute by the seventh year. In no event shall funding for a Center be provided by the Department of Commerce after the sixth year of the operation of a Center.”

1992—Subsec. (c)(6). Pub. L. 102–245, § 105(e)(1), inserted before period at end “except for contracts for such specific technology extension or transfer services as may be specified by statute or by the Director”.

Subsec. (d). Pub. L. 102–245, § 105(e)(2), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “There are authorized to be appropriated for the purposes of carrying out this section, a combined total of not to exceed $40,000,000 for fiscal years 1989 and 1990. Such sums shall remain available until expended.”

Change Of Name

Change of Name

Pub. L. 108–447, div. B, title II, Dec. 8, 2004, 118 Stat. 2879, which in part renamed the Manufacturing Extension Partnership Program authorized under this section as the Hollings Manufacturing Partnership Program and which named the centers established and receiving funding under subsec. (a) of this section the Hollings Manufacturing Extension Centers, was repealed by Pub. L. 111–358, title IV, § 404(f)(2), Jan. 4, 2011, 124 Stat. 4002.

Miscellaneous

Findings

Pub. L. 111–358, title VII, § 702, Jan. 4, 2011, 124 Stat. 4041, provided that: “Congress finds the following:

“(1) Over its 20-year existence, the Hollings Manufacturing Extension Partnership has proven its value to manufacturers as demonstrated by the resulting impact on jobs and the economies of all 50 States and the Nation as a whole.

“(2) The Hollings Manufacturing Extension Partnership has helped thousands of companies reinvest in themselves through process improvement and business growth initiatives leading to more sales, new markets, and the adoption of technology to deliver new products and services.

“(3) Manufacturing is an increasingly important part of the construction sector as the industry moves to the use of more components and factory built sub-assemblies.

“(4) Construction practices must become more efficient and precise if the United States is to construct and renovate its building stock to reduce related carbon emissions to levels that are consistent with combating global warming.

“(5) Many companies involved in construction are small, without access to innovative manufacturing techniques, and could benefit from the type of training and business analysis activities that the Hollings Manufacturing Extension Partnership routinely provides to the Nation’s manufacturers and their supply chains.

“(6) Broadening the competitiveness grant program under section 25(f) of the National Institute of Standards and Technology Act (15 U.S.C. 278k(f)) could help develop and diffuse knowledge necessary to capture a large portion of the estimated $100 billion or more in energy savings if buildings in the United States met the level and quality of energy efficiency now found in buildings in certain other countries.

“(7) It is therefore in the national interest to expand the capabilities of the Hollings Manufacturing Extension Partnership to be supportive of the construction and green energy industries.”

Agreements and Contributions for Collective Research and Development Initiatives

Pub. L. 108–7, div. B, title II, Feb. 20, 2003, 117 Stat. 73, provided in part: “That hereafter the Secretary of Commerce is authorized to enter into agreements with one or more nonprofit organizations for the purpose of carrying out collective research and development initiatives pertaining to 15 U.S.C. 278k paragraph (a), and is authorized to seek and accept contributions from public and private sources to support these efforts as necessary.”

Similar provisions were contained in the following prior appropriation act:

Pub. L. 107–77, title II, Nov. 28, 2001, 115 Stat. 774.

Additional Renewal of Federal Financial Assistance for Centers

Pub. L. 105–277, div. A, § 101(b) [title II], Oct. 21, 1998, 112 Stat. 2681–50, 2681–83, which provided that Federal financial assistance awarded by the Secretary of Commerce to a Regional Center for the Transfer of Manufacturing Technology could continue beyond six years and could be renewed for additional periods, not to exceed one year, at a rate not to exceed one-third of the Center’s total annual costs or the level of funding in the sixth year, whichever was less, subject before any such renewal to a positive evaluation of the Center and to a finding by the Secretary of Commerce that continuation of Federal funding to the Center was in the best interest of the Regional Centers for the Transfer of Manufacturing Technology Program, was from the Departments of Commerce Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1999, and was not repeated in subsequent appropriations Acts. Similar provisions were contained in the following prior appropriation acts:

Pub. L. 105–119, title II, Nov. 26, 1997, 111 Stat. 2476.

Pub. L. 104–208, div. A, title I, § 101(a) [title II], Sept. 30, 1996, 110 Stat. 3009, 3009–36.

Pub. L. 103–317, title II, Aug. 26, 1994, 108 Stat. 1741.

Publication in Federal Register

Pub. L. 100–519, title I, § 102(d), Oct. 24, 1988, 102 Stat. 2590, provided that: “The requirement of section 25(c)(2) of the Act of March 3, 1901, [15 U.S.C. 278k(c)(2)], shall be considered to have been met by the publication made by the National Bureau of Standards on July 18, 1988 (53 Fed. Reg. 27060).”