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<bill bill-stage="Introduced-in-Senate" dms-id="A1" public-private="public" slc-id="S1-DUN21875-YV9-VP-K0M"><metadata xmlns:dc="http://purl.org/dc/elements/1.1/">
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<dc:title>117 S3208 IS: Supply Chain Resiliency Act</dc:title>
<dc:publisher>U.S. Senate</dc:publisher>
<dc:date>2021-11-15</dc:date>
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<dc:language>EN</dc:language>
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<distribution-code display="yes">II</distribution-code><congress>117th CONGRESS</congress><session>1st Session</session><legis-num>S. 3208</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20211115">November 15, 2021</action-date><action-desc><sponsor name-id="S354">Ms. Baldwin</sponsor> (for herself, <cosponsor name-id="S307">Mr. Brown</cosponsor>, <cosponsor name-id="S337">Mr. Coons</cosponsor>, <cosponsor name-id="S385">Ms. Cortez Masto</cosponsor>, <cosponsor name-id="S221">Mrs. Feinstein</cosponsor>, <cosponsor name-id="S331">Mrs. Gillibrand</cosponsor>, <cosponsor name-id="S413">Mr. Padilla</cosponsor>, <cosponsor name-id="S402">Ms. Rosen</cosponsor>, <cosponsor name-id="S390">Mr. Van Hollen</cosponsor>, <cosponsor name-id="S415">Mr. Warnock</cosponsor>, and <cosponsor name-id="S316">Mr. Whitehouse</cosponsor>) introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSCM00">Committee on Commerce, Science, and Transportation</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title>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.</official-title></form><legis-body><section id="S1" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Supply Chain Resiliency Act</short-title></quote>.</text></section><section id="id1B01173FD5034053B881636324063409"><enum>2.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text><paragraph id="id7E7BD0A02B574E5590754886FEFB1DF7"><enum>(1)</enum><header>Assistant Secretary</header><text>The term <term>Assistant Secretary</term> means the Assistant Secretary of Commerce for Supply Chain Resiliency.</text></paragraph><paragraph id="idB579BCFB5BA84D128EE354A8EC2DAB40"><enum>(2)</enum><header>Critical product</header><text>The term <term>critical product</term> means a product that is critical to the national security, economic security, or public health of the United States.</text></paragraph><paragraph id="idE2A76957B9D44157A0F9C6D7F586AB17"><enum>(3)</enum><header>Eligible entity</header><text>The term <term>eligible entity</term>—</text><subparagraph id="id889B47C884EF499FB77ADF63E03E0FC8"><enum>(A)</enum><text>means a manufacturer that—</text><clause id="idCD6C5EFC5B3D42ED9B519230D1C7D384"><enum>(i)</enum><text>produces not less than 1 good at a facility in the United States; and</text></clause><clause id="idC36802CEF3874C8E95B4E1653B5A88D3"><enum>(ii)</enum><text>is a small business concern; and</text></clause></subparagraph><subparagraph id="id1ABD44EDFB294A7AAC7290D75E989AB5" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>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.</text></subparagraph></paragraph><paragraph id="id48B7CBAC99C24E46AEA4130914636A54"><enum>(4)</enum><header>Office</header><text>The term <term>Office</term> means the Office of Supply Chain Resiliency.</text></paragraph><paragraph id="idAAE3AC5FF8534CD99EDAB4F1574795F5"><enum>(5)</enum><header>Program</header><text>The term <term>Program</term> means the Supply Chain Monitoring and Resiliency Program established under section 4(a).</text></paragraph><paragraph id="idF300BC608D2741248B0C2CBFD5CE6236"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Commerce.</text></paragraph><paragraph id="id8D513CFDF08E4130996FE7DE70ED79E0"><enum>(7)</enum><header>Small business concern</header><text>The term <term>small business concern</term> has the meaning given the term in section 3 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/632">15 U.S.C. 632</external-xref>).</text></paragraph></section><section id="id1d75cb5f419d43c3adc8c1b8ae0fe707"><enum>3.</enum><header>Office of supply chain resiliency</header><subsection id="id162a8cfbbde749a1a089b551fd112ea5"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall establish within the Department of Commerce the Office of Supply Chain Resiliency.</text></subsection><subsection id="idB1269587B2474ACB8FAAAAA001DD20E0"><enum>(b)</enum><header>Assistant Secretary</header><text>The Office shall be headed by the Assistant Secretary of Commerce for Supply Chain Resiliency, who shall be appointed by the Secretary.</text></subsection><subsection id="idc3fab76972fd4627b8189ae5217ccf9e"><enum>(c)</enum><header>Responsibilities of the Assistant Secretary</header><text>The Assistant Secretary shall—</text><paragraph id="id0078a7b373d84c91aa3b8b20b5f2c79d"><enum>(1)</enum><text>administer the Supply Chain Monitoring and Resiliency Program;</text></paragraph><paragraph id="id03a66b82440d4353845460dee3045c71"><enum>(2)</enum><text>hire each employee of the Office; and</text></paragraph><paragraph id="id9b5b11d1b20c4b04b789740043207ed8"><enum>(3)</enum><text>issue regulations necessary to carry out this Act.</text></paragraph></subsection></section><section id="id2c997ee91a5e4ab38a733d88257c5e00"><enum>4.</enum><header>Supply chain monitoring and resiliency program</header><subsection id="id357BC61314324F868078550D7CE083D4"><enum>(a)</enum><header>Establishment</header><text>The Assistant Secretary shall establish within the Office the Supply Chain Resiliency Program.</text></subsection><subsection id="id6c31cc0cd1af451e97b893bdb1726c94"><enum>(b)</enum><header>Objectives</header><text>The objectives of the Program shall be to—</text><paragraph id="idc628454f94d34154ae6ea4cd39a78a58"><enum>(1)</enum><text>monitor and research interstate commerce and supply chains in the United States to identify vulnerabilities in supply chains that—</text><subparagraph id="id06a7b44635744842b7304e38223fea77"><enum>(A)</enum><text>produce products that are critical to the national security, economic security, and public health of the United States; and</text></subparagraph><subparagraph id="id85304f2281e94f8c92951eb80c8288dc"><enum>(B)</enum><text>produce products in emerging technologies; and</text></subparagraph></paragraph><paragraph id="id2ea1fc91fcf3445dadaa35a70176c9b6"><enum>(2)</enum><text>improve the supply in the United States of critical products in supply chains identified under paragraph (1) by providing expansion support to eligible entities.</text></paragraph></subsection><subsection id="iddb3b298342f64878bf76ebfc4ade83ac"><enum>(c)</enum><header>Supply chain research</header><paragraph id="idb33f5d96836e4af1ac75b90a5fbfda6c"><enum>(1)</enum><header>In general</header><text>Under the Program, the Assistant Secretary shall conduct research and analysis to identify supply chains that are—</text><subparagraph id="id76A22206E5324AA1A7B4158C4B6DC45B"><enum>(A)</enum><text>experiencing supply shortages; or</text></subparagraph><subparagraph id="id11505EA1C56D411BB074AE4E4833FD5B"><enum>(B)</enum><text>vulnerable to experiencing supply shortages.</text></subparagraph></paragraph><paragraph id="id6D815882A9C14EC4BCA2286557A7C778"><enum>(2)</enum><header>Supply chain vulnerabilities</header><text>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—</text><subparagraph id="id7D7703A40F7443C2A90B849025C12EEC"><enum>(A)</enum><text>a critical product—</text><clause id="id211D5E3E327245C9B608BC6493E16A87"><enum>(i)</enum><text>of which there is a supply shortage or price spike due to a limited supply of the critical product; or</text></clause><clause id="id99B2EB2D72BF4E1F9EBCD8A6D3973311"><enum>(ii)</enum><text>that is in danger of experiencing a supply shortage or price spike due to a limited supply of the product;</text></clause></subparagraph><subparagraph id="id4AD9C785CDE34D7D8EEC3B449E0CD4B8"><enum>(B)</enum><text>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;</text></subparagraph><subparagraph id="idAE2E04364F3D42948BE339CCB3B09E5C"><enum>(C)</enum><text>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;</text></subparagraph><subparagraph id="id9bc7ecee70c84dd087d3981e924f97f8"><enum>(D)</enum><text>a manufacturer in the United States that has reduced output of a critical product because—</text><clause id="idCED4A038AA8D41659D4D0C09891E1BC4"><enum>(i)</enum><text>the necessary inputs to manufacture the critical product are unavailable due to a supply shortage or transportation disruption;</text></clause><clause id="id5B9EF9AA02C04DBBBA44DBE4C0735144"><enum>(ii)</enum><text>the cost of necessary inputs to manufacture the critical product have increased because of a supply shortage; or</text></clause><clause id="id7ad35056bbe848418e75198a67042197"><enum>(iii)</enum><text>the critical product cannot be delivered due to a transportation disruption; and</text></clause></subparagraph><subparagraph id="id5FF2265D84E4461590E2A69A85FA2D04" commented="no" display-inline="no-display-inline"><enum>(E)</enum><text>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. </text></subparagraph></paragraph><paragraph id="id1350919b63e2412bbce7a058c834a73a"><enum>(3)</enum><header>Methods</header><text>In conducting the research and analysis required under paragraph (1), the Assistant Secretary may—</text><subparagraph id="idA4836BE7B45047B48D2D1C303959D9F2"><enum>(A)</enum><text>conduct surveys of industry;</text></subparagraph><subparagraph id="idF649412FE5834C5798EACB0A885CEC27"><enum>(B)</enum><text>analyze market data, including consumer price indices and the components of those indices; and</text></subparagraph><subparagraph id="id51C46F1766DD46EDB06F61407EDC5379"><enum>(C)</enum><text>convene meetings with manufacturers, suppliers, consumers, retailers, labor organizations, and other constituents of supply chains in the United States.</text></subparagraph></paragraph><paragraph id="id51a7cfed1c3f45c3b2f7e5d435d24e19"><enum>(4)</enum><header>Supply shock stress tests</header><text>The Assistant Secretary may conduct stress tests to simulate the impact of hypothetical supply chain shocks on—</text><subparagraph id="id02900A45FC8B431295A5A760045642D4"><enum>(A)</enum><text>supply chains for critical products in the United States; and</text></subparagraph><subparagraph id="idB4012A41C0034CCA836D50BDD4B6D0C4"><enum>(B)</enum><text>manufacturers in the United States that comprise the supply chains described in subparagraph (A) by—</text><clause id="id6BAE6E117C5944A1A7F636DDDF20A3CA"><enum>(i)</enum><text>producing critical products;</text></clause><clause id="id256D5D3A84BE45898616B8EFBA90CFCD"><enum>(ii)</enum><text>supplying inputs to critical products; or</text></clause><clause id="idCEA850A6FD7D488CA4840B5256683F6D"><enum>(iii)</enum><text>buying critical products as an input for the manufactured goods of the manufacturer.</text></clause></subparagraph></paragraph><paragraph id="id181EF0D2FED847CEAA954405A4618F73"><enum>(5)</enum><header>Eligibility for expansion support</header><text>In identifying entities that may be eligible to receive expansion support under subsection (d)(1), the Assistant Secretary—</text><subparagraph id="id018B1AD42B8D435F885FB53BDE8EBFAF"><enum>(A)</enum><text>shall use data gathered from the research conducted under paragraph (1); and</text></subparagraph><subparagraph id="idF4C0F2ED6548426D902943A995D81855"><enum>(B)</enum><text>may use results of the stress tests conducted under paragraph (4).</text></subparagraph></paragraph></subsection><subsection id="id564db6a4be2b4adb8537c7d2854e009a"><enum>(d)</enum><header>Supply chain resiliency expansion support</header><paragraph id="idAAFFEF785E824623BADBD1D8783B2C9D"><enum>(1)</enum><header>In general</header><text>Under the Program, the Assistant Secretary shall provide expansion support to eligible entities in the form of—</text><subparagraph id="idC2C1F2FE24CD4DCF84380F2DCDF02C9F"><enum>(A)</enum><text>loans;</text></subparagraph><subparagraph id="id4133460FAB914423B858AACF28571F90"><enum>(B)</enum><text>loan guaranties on private markets; and</text></subparagraph><subparagraph id="id029DF679AD7E4154A702651793408A12"><enum>(C)</enum><text>grants.</text></subparagraph></paragraph><paragraph id="id204FAD33A59A400CB1F20605B088E2B3"><enum>(2)</enum><header>Use of expansion support</header><text>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).</text></paragraph><paragraph id="id83b8f5ea4ad34dc0a1c5f28c9607f0c3"><enum>(3)</enum><header>Terms and conditions of expansion support</header><subparagraph id="id301d3098828a4104b0c256df16fbef1c"><enum>(A)</enum><header>In general</header><text>An eligible entity that receives expansion support under paragraph (1) shall agree to—</text><clause id="id0C5BCC2704A84A3780F5E8F864FFDBF3"><enum>(i)</enum><text>maintain production of a critical product in the United States;</text></clause><clause id="idDF741EB9CA724BD4AB30E5D5A824E7C0"><enum>(ii)</enum><text>comply with the labor standards required under subparagraph (B); and</text></clause><clause id="id46DD8D459A2248AA9CF517985A51395A"><enum>(iii)</enum><text>any other terms or conditions the Assistant Secretary may require in order to achieve the objectives of the Program.</text></clause></subparagraph><subparagraph id="id5b3d9d65f96f4ad9a781a55491e91c8b"><enum>(B)</enum><header>Labor-management cooperation</header><clause id="id4eff9f4dd3ec49beaf1afd079fffd51f"><enum>(i)</enum><header>In general</header><text>Notwithstanding any other provision of law, including the National Labor Relations Act (<external-xref legal-doc="usc" parsable-cite="usc/29/151">29 U.S.C. 151 et seq.</external-xref>), 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. </text></clause><clause id="id97f2d8b78765452bb675adda57517d92"><enum>(ii)</enum><header>Recognition</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/29/159">29 U.S.C. 159</external-xref>) 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—</text><subclause id="id2763E09627AD43828839459019F04D4F"><enum>(I)</enum><text>has determined that the labor organization represents a majority of the employees in such unit who perform or will perform such work; and</text></subclause><subclause id="id874A84EEE4954619A212A0E728627608"><enum>(II)</enum><text>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. </text></subclause></clause><clause id="idc2cce384b15d410baa07fd5fb2b76fa4"><enum>(iii)</enum><header>Dispute resolution and unit certification</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/29/159">29 U.S.C. 159(a)</external-xref>).</text></clause><clause id="iddd34134d2d214b2ea8b082d973eff452"><enum>(iv)</enum><header>Meetings and collective bargaining agreements</header><text>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.</text></clause><clause id="id410dbf4e7b89444f9ce625ea71263874"><enum>(v)</enum><header>Mediation and conciliation</header><text>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 <quote>Service</quote>) 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. </text></clause><clause id="id2155c637c0cf46eeaaf4ce4e7db93c55"><enum>(vi)</enum><header>Tripartite arbitration</header><subclause id="idd79ad9c4404348fcadbd02f2ec8a0ba4"><enum>(I)</enum><header>In general</header><text>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.</text></subclause><subclause id="id6a45b1e378ed4450a29b76970d751790"><enum>(II)</enum><header>Members</header><text>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.</text></subclause><subclause id="id2713f04248074b8fae79ad7461f55651"><enum>(III)</enum><header>Decisions</header><text>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—</text><item id="idd76e732c741b4c838378e2e44afda3f4"><enum>(aa)</enum><text>the financial status and prospects of the employer;</text></item><item id="id054696be525e4de992d66ac4590f9d79"><enum>(bb)</enum><text>the size and type of the operations and business of the employer;</text></item><item id="id18bf30759e574f75b62c7a9d2b21f98b"><enum>(cc)</enum><text>the cost of living of the employees;</text></item><item id="id11675928daf64cc4b94209fa77beadb1"><enum>(dd)</enum><text>the ability of the employees to sustain themselves, their families, and their dependents on the wages and benefits they earn from the employer; and</text></item><item id="id9061ec985c85411ea7952ccc6f72dd5e"><enum>(ee)</enum><text>the wages and benefits other employers in the same business provide their employees.</text></item></subclause></clause><clause id="idc9341f874bab430c932daf2b77cb3b2d"><enum>(vii)</enum><header>Contractors and subcontractors</header><text>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).</text></clause><clause id="idf80ef74c822c4470bfe714ab5e7c61c2"><enum>(viii)</enum><header>Definitions</header><text>In this subparagraph, the terms <term>employee</term>, <term>employer</term>, and <term>labor organization</term> have the meanings given the terms in section 2 of the National Labor Relations Act (<external-xref legal-doc="usc" parsable-cite="usc/29/152">29 U.S.C. 152</external-xref>).</text></clause></subparagraph><subparagraph id="id1c4cc261fabb431d811734af8542ff26" commented="no" display-inline="no-display-inline"><enum>(C)</enum><header>Limitation of funds</header><text>Funds appropriated to carry out this Act shall not be used to assist, promote, or deter organizing of labor organizations. </text></subparagraph></paragraph></subsection><subsection id="id809A7E86B5BF405CB6AC21D1308A83B2"><enum>(e)</enum><header>Supply chain resiliency fund</header><paragraph id="id80E9E6481949438DBDE26A8910D000EF"><enum>(1)</enum><header>Establishment</header><text>There is established a Supply Chain Resiliency Fund for the purpose of funding loans, loan guaranties, and grants under the Program.</text></paragraph><paragraph id="idc4a93aa7a2cb4ed1b65c29b8efb0abd2"><enum>(2)</enum><header>Financial operations of the supply chain resiliency fund</header><subparagraph id="ide6ce7059498e43619012b7e9a35c137b"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph><subparagraph id="iddfcb35587ced4247a74989cc9245b0fd"><enum>(B)</enum><header>Reserve ratio</header><text>The Assistant Secretary shall not lend in excess of 10 times the capital in reserve in the Supply Chain Resiliency Fund.</text></subparagraph><subparagraph id="ide4ea17b93f5c457cb6ea359607525eb9"><enum>(C)</enum><header>Interest rate</header><text>The Assistant Secretary shall establish interest rates for loans, loan guaranties, and other instruments as the Secretary considers appropriate, taking into account—</text><clause id="id5dcef387bfc94079bc8405d7f391a29c"><enum>(i)</enum><text>the objectives of the Program described in section 3(b); and</text></clause><clause id="id21f88967272c4b9e93fbdff7aad48d6c"><enum>(ii)</enum><text>the cost of capital experienced by foreign competitors to the beneficiaries of the support provided under this section.</text></clause></subparagraph></paragraph></subsection><subsection id="id17243C3BF1DA4C9099ABE9D96D44E7E1"><enum>(f)</enum><header>Authorization of appropriations</header><text>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).</text></subsection></section></legis-body></bill> 

