S. 1956 — what changed

changed This Act may be cited as the “Invent Here, Make Here Act of 2023”.2024”.

Section 2 of the National Institute of Standards and Technology Act (15 U.S.C. 272) is amended by adding at the end the following:

“(f) Commercialization of Federal research by domestic manufacturers—In order for the Institute to meet the need described in section 1(a)(1) and most effectively carry out the activities under subsection (c)(1) of this section, the Director shall—

changed “(1) coordinate with the Manufacturing USA Network established under section 34(c)(1) Secretary of Defense, the Secretary of Energy, the Director of the National Science Foundation, and industry organizations to identify domestic manufacturers that can develop commercial products based on completed research conducted by Federal agencies;

“(2) work with the Administrator of the Small Business Administration to identify domestic investors to support the development of commercial products based on research conducted by Federal agencies; and

changed “(3) coordinate with the Director of the Made in America Office at the Office of Management maintain a publicly accessible and Budget to use the procedures described in section 204(c)(2)(A)(i) searchable database of title 35, United States Code, to identify appropriate domestic manufacturers and investors their capabilities with respect to commercialize products based on Federal research and manufacture such products in the United States.”commercialization of federally funded research.”

Not later than 540 days after the date of enactment of this Act, the Director of the National Institute of Standards and Technology shall—

Section 204 of title 35, United States Code, is amended to read as follows:

“204. Preference for United States industry

“(a) Definitions—In this section:

changed “(1) Country of concern—The term country of concern means a country that—has the meaning given the term covered nation in section 4872(d) of title 10.

changed “(A) is a covered nation, as that “(2) Relevant congressional committees—The term is defined in section 4872(d) of title 10; orrelevant congressional committees means—

changed “(B) the Secretary of Commerce determines is engaged in conduct that is detrimental to “(A) the national security Committee on Commerce, Science, and Transportation of the United States.Senate;

changed “(2) Manufactured substantially in “(B) the United States—The term manufactured substantially in Committee on the United States means manufactured substantially from all articles, materials, or supplies mined, produced, or manufactured in Judiciary of the United States.Senate;

changed “(3) Relevant congressional committees—The term relevant congressional committees means—“(C) the Committee on Science, Space, and Technology of the House of Representatives; and

changed “(A) “(D) the Committee on Commerce, Science, and Transportation the Judiciary of the Senate; andHouse of Representatives.

changed “(B) the Committee on Science, Space, “(b) General preference—Notwithstanding any other provision of this chapter, and Technology subject to subsection (c), no small business firm or nonprofit organization which receives title to any subject invention and no assignee of any such small business firm or nonprofit organization shall grant to any person the House exclusive right to use or sell any subject invention in the United States unless such person agrees that any products embodying the subject invention or produced through the use of Representatives.the subject invention will be manufactured substantially in the United States.

removed “(b) General preference—Notwithstanding any other provision of this chapter, and subject to subsection (c), no small business firm or nonprofit organization which receives title to any subject invention and no assignee of any such small business firm or nonprofit organization shall grant to any person the exclusive right to use or sell any subject invention unless such person agrees that any products embodying the subject invention or produced through the use of the subject invention will be manufactured substantially in the United States.

“(c) Waivers

added “(1) In general—In individual cases, subject to paragraphs (2) and (3), the Federal agency under whose funding agreement the applicable subject invention was made may waive the requirement for an agreement described in subsection (b) upon a showing by the applicable small business firm, nonprofit organization, or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible.

changed “(1) In general—In individual cases, subject to paragraph (2), “(2) Review timeline—Not later than 90 days after the requirement date on which a Federal agency receives a request for an agreement a waiver described in subsection (b) may be waived by paragraph (1) and with respect to which paragraph (3) does not apply, the Federal agency under whose funding agreement the applicable subject invention was made upon shall issue a showing by the small business firm, nonprofit organization, or assignee that reasonable but unsuccessful efforts have been made decision regarding whether to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible.request.

changed “(2) Conditions “(3) Prohibition on waiversgranting certain waivers without presidential authorization—If granting a waiver under paragraph (1) would result in products embodying the applicable subject invention or produced through the use of the applicable subject invention being manufactured substantially in a country of concern, the applicable Federal agency may not grant the waiver without the written authorization of the President (or a designee of the President).

changed “(A) Before grant of waiver—Before granting a waiver under paragraph (1), a Federal agency shall—“(4) Annual report to congressional committees

changed “(i) comply with “(A) In general—Not later than 1 year after the procedures developed and implemented pursuant to section 70923(b)(2) date of enactment of the Build America, Buy America Invent Here, Make Here Act (subtitle A of 2024, and annually thereafter, each Federal agency with respect to which, during the preceding year, a nonprofit organization or small business firm that is a party to a funding agreement with the Federal agency elected to retain title IX of division G under section 202 to the subject invention that was the subject of Public Law 117–58); andthat funding agreement shall submit to the relevant congressional committees a report that includes the information described in subparagraph (B).

changed “(ii) in carrying out clause (i), preserve “(B) Contents—Each report required under subparagraph (A) shall include, for the confidentiality or trade sensitive nature of information included in period covered by the applicable application for a license.report—

changed “(B) Prohibition on granting certain waivers—A “(i) with respect to each request received by the applicable Federal agency may not grant for a waiver under paragraph (1) if, as a result of the waiver, products embodying the applicable subject invention, or produced through the use of the applicable subject invention, will be manufactured substantially in a country of concern.this subsection, information regarding—

changed “(3) Annual report to congressional committees—Not later than 1 year after the date of enactment of the Invent Here, Make Here Act of 2023, and annually thereafter, each Federal agency that, during the preceding year, has received a request for a waiver under this subsection shall submit to “(I) the relevant congressional committees a report regarding subject invention that is the decision subject of the Federal agency to grant or deny each such request.”request;

added “(II) the efforts made by the entity seeking the waiver to grant the exclusive right to use or sell the applicable subject invention to a person that would agree that any products embodying the subject invention or produced through the use of the subject invention would be manufactured substantially in the United States; and

added “(III) in which markets the products embodying the applicable subject invention or produced through the use of the applicable subject invention will be sold; and

added “(ii) with respect to a small business firm or nonprofit organization that is based in the United States and has elected to retain title to a subject invention pursuant to section 202, whether that firm or organization intends to manufacture that subject invention in a foreign country for a foreign market.

added “(C) Preservation of confidentiality—Each Federal agency that is required to submit a report under this paragraph shall preserve the confidentiality or trade sensitive nature of all information included in each such report.”

Subtitle G of title III of the Research and Development, Competition, and Innovation Act (42 U.S.C. 19101 et seq.) is amended—

changed “(4) ensure strongly encourage that products developed through research funded by the Directorate will be manufactured in the United States.”

“(8) develop industrial capacity to produce innovations competitively in the United States for the global marketplace.”

“(3) maximizes economic benefits by ensuring that innovations developed from research awards are produced in the United States.”