Supply Chain Resiliency Act

Bill: 117-s-3208
Sponsor: full_name: Sen. Baldwin, Tammy [D-WI]
Introduced: 2021-11-15
Policy area: Commerce
Subjects: Administrative remedies

Department of Commerce

Food supply, safety, and labeling

Government studies and investigations
Latest action: action_date: 2022-06-22
text: Committee on Banking, Housing, and Urban Affairs. Hearings held.

Summaries:
action_date: 2021-11-15
action_desc: Introduced in Senate
text: <p><strong>Supply Chain Resiliency Act</strong></p> <p>This bill establishes the Office of Supply Chain Resiliency within the Department of Commerce. </p> <p>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.</p>

tv_txt: II 117th CONGRESS 1st Session S. 3208 IN THE SENATE OF THE UNITED STATES November 15, 2021 Ms. Baldwin (for herself, Mr. Brown , Mr. Coons , Ms. Cortez Masto , Mrs. Feinstein , Mrs. Gillibrand , Mr. Padilla , Ms. Rosen , Mr. Van Hollen , Mr. Warnock , and Mr. Whitehouse ) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation 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.

1. Short title This Act may be cited as the Supply Chain Resiliency Act . 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 ). 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. 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).