Supply Chain Resiliency Act
Bill: S.3208 | Sponsor: Sen. Baldwin, Tammy (D-WI)
Policy area: Commerce

Summary:
Supply Chain Resiliency Act
This bill establishes the Office of Supply Chain Resiliency within the Department of Commerce.
The office must identify vulnerabilities in the supply chains for critical products and emerging technologies. It also must provide financial support to manufacturers to expand production of products that are part of supply chains experiencing shortages.

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 1 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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