[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6478 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 6478
To establish the Office of Supply Chain Resiliency within the
Department of Commerce to provide expansion support to companies and
supply chains in the United States that are vulnerable to shortages and
price increases, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 25, 2022
Mrs. Axne (for herself, Mr. Schneider, and Mr. Krishnamoorthi)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
_______________________________________________________________________
A BILL
To establish the Office of Supply Chain Resiliency within the
Department of Commerce to provide expansion support to companies and
supply chains in the United States that are vulnerable to shortages and
price increases, 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.
This Act may be cited as the ``Supply Chain Resiliency Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Supply Chain
Resiliency.
(2) Critical product.--The term ``critical product'' means
a product that is critical to the national security, economic
security, or public health of the United States.
(3) Eligible entity.--The term ``eligible entity''--
(A) means a manufacturer that--
(i) produces not less than one good at a
facility in the United States; and
(ii) is a small business concern; and
(B) may include a manufacturer that is not a small
business concern if the Secretary determines that
providing expansion support to the manufacturer under
section 4 would be in the public interest.
(4) Office.--The term ``Office'' means the Office of Supply
Chain Resiliency.
(5) Program.--The term ``Program'' means the Supply Chain
Monitoring and Resiliency Program established under section
4(a).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(7) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).
SEC. 3. OFFICE OF SUPPLY CHAIN RESILIENCY.
(a) Establishment.--The Secretary shall establish within the
Department of Commerce the Office of Supply Chain Resiliency.
(b) Assistant Secretary.--The Office shall be headed by the
Assistant Secretary of Commerce for Supply Chain Resiliency, who shall
be appointed by the Secretary.
(c) Responsibilities of the Assistant Secretary.--The Assistant
Secretary shall--
(1) administer the Supply Chain Monitoring and Resiliency
Program;
(2) hire each employee of the Office; and
(3) issue regulations necessary to carry out this Act.
SEC. 4. SUPPLY CHAIN MONITORING AND RESILIENCY PROGRAM.
(a) Establishment.--The Assistant Secretary shall establish within
the Office the Supply Chain Resiliency Program.
(b) Objectives.--The objectives of the Program shall be to--
(1) monitor and research interstate commerce and supply
chains in the United States to identify vulnerabilities in
supply chains that--
(A) produce products that are critical to the
national security, economic security, and public health
of the United States; and
(B) produce products in emerging technologies; and
(2) improve the supply in the United States of critical
products in supply chains identified under paragraph (1) by
providing expansion support to eligible entities.
(c) Supply Chain Research.--
(1) In general.--Under the Program, the Assistant Secretary
shall conduct research and analysis to identify supply chains
that are--
(A) experiencing supply shortages; or
(B) vulnerable to experiencing supply shortages.
(2) Supply chain vulnerabilities.--For the purpose of
paragraph (1), a supply chain that is experiencing a supply
shortage or vulnerable to experiencing a supply shortage shall
include a supply chain within which there is--
(A) a critical product--
(i) of which there is a supply shortage or
price spike due to a limited supply of the
critical product; or
(ii) that is in danger of experiencing a
supply shortage or price spike due to a limited
supply of the product;
(B) a manufacturer in the United States that is the
sole supplier, or that is in danger of becoming the
sole supplier, in the supply chain of a critical
product;
(C) a manufacturer in the United States of a
critical product that cannot make investments in
property, a plant, and equipment necessary to expand
the production of the critical product due to a lack of
access to low-cost, long-term capital;
(D) a manufacturer in the United States that has
reduced output of a critical product because--
(i) the necessary inputs to manufacture the
critical product are unavailable due to a
supply shortage or transportation disruption;
(ii) the cost of necessary inputs to
manufacture the critical product have increased
because of a supply shortage; or
(iii) the critical product cannot be
delivered due to a transportation disruption;
and
(E) any other supply chain disruption identified by
the Assistant Secretary that results in, or could
result in, increased prices and supply shortages for a
critical product.
(3) Methods.--In conducting the research and analysis
required under paragraph (1), the Assistant Secretary may--
(A) conduct surveys of industry;
(B) analyze market data, including consumer price
indices and the components of those indices; and
(C) convene meetings with manufacturers, suppliers,
consumers, retailers, labor organizations, and other
constituents of supply chains in the United States.
(4) Supply shock stress tests.--The Assistant Secretary may
conduct stress tests to simulate the impact of hypothetical
supply chain shocks on--
(A) supply chains for critical products in the
United States; and
(B) manufacturers in the United States that
comprise the supply chains described in subparagraph
(A) by--
(i) producing critical products;
(ii) supplying inputs to critical products;
or
(iii) buying critical products as an input
for the manufactured goods of the manufacturer.
(5) Eligibility for expansion support.--In identifying
entities that may be eligible to receive expansion support
under subsection (d)(1), the Assistant Secretary--
(A) shall use data gathered from the research
conducted under paragraph (1); and
(B) may use results of the stress tests conducted
under paragraph (4).
(d) Supply Chain Resiliency Expansion Support.--
(1) In general.--Under the Program, the Assistant Secretary
shall provide expansion support to eligible entities in the
form of--
(A) loans;
(B) loan guaranties on private markets; and
(C) grants.
(2) Use of expansion support.--An eligible entity that
receives expansion support under paragraph (1) shall use the
expansion support to expand production of a product that is
part of a supply chain identified under subsection (c)(1).
(3) Terms and conditions of expansion support.--
(A) In general.--An eligible entity that receives
expansion support under paragraph (1) shall agree to--
(i) maintain production of a critical
product in the United States;
(ii) comply with the labor standards
required under subparagraph (B); and
(iii) any other terms or conditions the
Assistant Secretary may require in order to
achieve the objectives of the Program.
(B) Labor-management cooperation.--
(i) In general.--Notwithstanding any other
provision of law, including the National Labor
Relations Act (29 U.S.C. 151 et seq.), this
subparagraph shall apply with respect to any
recipient of funding under this section who is
an employer and any labor organization who
represents or seeks to represent any employees
or only those employees who perform or will
perform work funded under this section.
(ii) Recognition.--Any employer receiving
funds under this section shall recognize for
purposes of collective bargaining a labor
organization that demonstrates that a majority
of the employees in a unit appropriate for such
purposes and who perform or will perform work
funded under this section have signed valid
authorizations designating the labor
organization as their collective bargaining
representative and that no other labor
organization is certified or recognized
pursuant to section 9 of the National Labor
Relations Act (29 U.S.C. 159) as the exclusive
representative of any of the employees in the
unit who perform or will perform such work.
Upon such showing of majority status, the
employer shall notify the labor organization
and the National Labor Relations Board that the
employer--
(I) has determined that the labor
organization represents a majority of
the employees in such unit who perform
or will perform such work; and
(II) is recognizing the labor
organization as the exclusive
representative of the employees in such
unit who perform or will perform such
work for the purposes of collective
bargaining pursuant to that section.
(iii) Dispute resolution and unit
certification.--If a dispute over majority
status or the appropriateness of the unit
described in clause (ii) arise between the
employer and the labor organization, either
party may request that the National Labor
Relations Board investigate and resolve the
dispute. If the Board finds that a majority of
the employees in a unit appropriate for
purposes of collective bargaining who perform
or will perform work funded under this section
has signed valid authorizations designating the
labor organization as their representative for
such purposes and that no other individual or
labor organization is certified or recognized
as the exclusive representative of any of the
employees in the unit who perform or will
perform such work for such purposes, the Board
shall not direct an election but shall certify
the labor organization as the representative
described in section 9(a) of the National Labor
Relations Act (29 U.S.C. 159(a)).
(iv) Meetings and collective bargaining
agreements.--Not later than 10 days after an
employer receiving funding under this section
receives a written request for collective
bargaining from a recognized or certified labor
organization representing employees who perform
or will perform work funded under this section,
or within such period as the parties agree
upon, the labor organization and employer shall
meet and commence to bargain collectively and
shall make every reasonable effort to conclude
and sign a collective bargaining agreement.
(v) Mediation and conciliation.--If, after
the expiration of the 90-day period beginning
on the date on which collective bargaining is
commenced under clause (iv), or such additional
period as the parties may agree upon, the
parties have failed to reach an agreement,
either party may notify the Federal Mediation
and Conciliation Service (referred to in this
subparagraph as the ``Service'') of the
existence of a dispute and request mediation.
Whenever such a request is received, it shall
be the duty of the Service promptly to put
itself in communication with the parties and to
use its best efforts, by mediation and
conciliation, to bring them to agreement.
(vi) Tripartite arbitration.--
(I) In general.--If, after the
expiration of the 30-day period
beginning on the date on which the
request for mediation is made under
clause (v), or such additional period
as the parties may agree upon, the
Service is not able to bring the
parties to agreement by mediation and
conciliation, the Service shall refer
the dispute to a tripartite arbitration
panel established in accordance with
such regulations as may be prescribed
by the Service.
(II) Members.--A tripartite
arbitration panel established under
this clause with respect to a dispute
shall be composed of 1 member selected
by the labor organization, 1 member
selected by the employer, and 1 neutral
member mutually agreed to by the labor
organization and the employer. Each
such member shall be selected not later
than 14 days after the expiration of
the 30-day period described in
subclause (I) with respect to such
dispute. Any member not so selected by
the date that is 14 days after the
expiration of such period shall be
selected by the Service.
(III) Decisions.--A majority of a
tripartite arbitration panel
established under this clause with
respect to a dispute shall render a
decision settling the dispute as soon
as practicable, and (absent
extraordinary circumstances or by
agreement or permission of the parties)
not later than 120 days after the
establishment of such panel. Such a
decision shall be binding upon the
parties for a period of 2 years, unless
amended during such period by written
consent of the parties. Such decision
shall be based on--
(aa) the financial status
and prospects of the employer;
(bb) the size and type of
the operations and business of
the employer;
(cc) the cost of living of
the employees;
(dd) the ability of the
employees to sustain
themselves, their families, and
their dependents on the wages
and benefits they earn from the
employer; and
(ee) the wages and benefits
other employers in the same
business provide their
employees.
(vii) Contractors and subcontractors.--Any
employer receiving funds under this section to
procure goods or services shall require a
contractor or subcontractor, whose employees
perform or will perform work funded under this
section, that contracts or subcontracts with
the employer to comply with the requirements
set forth in clauses (i) through (vi).
(viii) Definitions.--In this subparagraph,
the terms ``employee'', ``employer'', and
``labor organization'' have the meanings given
the terms in section 2 of the National Labor
Relations Act (29 U.S.C. 152).
(C) Limitation of funds.--Funds appropriated to
carry out this Act shall not be used to assist,
promote, or deter organizing of labor organizations.
(e) Supply Chain Resiliency Fund.--
(1) Establishment.--There is established a Supply Chain
Resiliency Fund for the purpose of funding loans, loan
guaranties, and grants under the Program.
(2) Financial operations of the supply chain resiliency
fund.--
(A) In general.--The Assistant Secretary shall use
the funds in the Supply Chain Resiliency Fund to
finance loans, loan guaranties, and grants to eligible
entities under the Program.
(B) Reserve ratio.--The Assistant Secretary shall
not lend in excess of 10 times the capital in reserve
in the Supply Chain Resiliency Fund.
(C) Interest rate.--The Assistant Secretary shall
establish interest rates for loans, loan guaranties,
and other instruments as the Secretary considers
appropriate, taking into account--
(i) the objectives of the Program described
in section 3(b); and
(ii) the cost of capital experienced by
foreign competitors to the beneficiaries of the
support provided under this section.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Assistant Secretary $5,000,000,000 for each of
fiscal years 2023 through 2027 to carry out the Program, of which
$4,000,000,000 shall be deposited into the Supply Chain Resiliency Fund
established under subsection (e).
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