Title: To amend the Securities Exchange Act of 1934 to require issuers to make disclosures related to supply chain disruption risk, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill requires certain issuers of securities to report to the Securities and Exchange Commission on the risks faced by the issuer regarding supply-chain disruption and the issuer's continuity or contingency plans to mitigate these risks.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6375 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6375

To amend the Securities Exchange Act of 1934 to require issuers to make 
  disclosures related to supply chain disruption risk, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2020

Ms. Velazquez introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Securities Exchange Act of 1934 to require issuers to make 
  disclosures related to supply chain disruption risk, 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. DISCLOSURES RELATED TO SUPPLY CHAIN DISRUPTION RISK.

    Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
is amended by adding at the end the following:
    ``(s) Disclosures Related to Supply Chain Disruption Risk.--
            ``(1) In general.--Each issuer required to file an annual 
        report under subsection (a) shall disclose in that report--
                    ``(A) an identification of--
                            ``(i) the risks in the issuer's sourcing of 
                        goods, labor, services, and other supply chain 
                        related matters, including--
                                    ``(I) risks of dependency upon sole 
                                sourcing arrangements or sourcing 
                                concentrated in one geographic 
                                locality;
                                    ``(II) shipping risks; and
                                    ``(III) risks arising from natural 
                                disasters, pandemics, extreme weather, 
                                armed conflicts, refugee and related 
                                disruptions, trade conflicts or 
                                disruptions, and labor wage, safety, 
                                and health care practices; and
                            ``(ii) the impacts any risk or disruption 
                        identified in clause (i) would have on the 
                        issuer's workforce, suppliers, and customers;
                    ``(B) the issuer's business continuity or other 
                contingency plans that will be implemented in the case 
                of a supply chain disruption in order to mitigate such 
                risks and impacts; and
                    ``(C) all other material information.
            ``(2) Updates.--Disclosures required under this subsection 
        shall be updated when there are material changes.''.
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