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 9