[House Report 118-148]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 118-148

======================================================================
 
            U.S. SUPPLY CHAIN SECURITY REVIEW ACT OF 2023

                                _______
                                

 July 18, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Graves of Missouri, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 3395]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 3395) to direct the Chairman of the 
Federal Maritime Commission to seek to enter into an agreement 
with a federally funded research and development center to 
evaluate foreign ownership of marine terminals at the 15 
largest United States container ports, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Legislative History and Consideration............................     3
Committee Votes..................................................     4
Committee Oversight Findings and Recommendations.................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     4
Performance Goals and Objectives.................................     4
Duplication of Federal Programs..................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     5
Federal Mandates Statement.......................................     5
Preemption Clarification.........................................     5
Advisory Committee Statement.....................................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
    Section 1. Short Title.......................................     5
    Section 2. Study on Foreign Ports............................     5
Changes in Existing Law Made by the Bill, as Reported............     6

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``U.S. Supply Chain Security Review Act 
of 2023''.

SEC. 2. STUDY ON FOREIGN PORTS.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Chairman of the Federal Maritime Commission shall seek 
to enter into an agreement with a federally funded research and 
development center to evaluate how foreign ownership of marine 
terminals at the 15 largest United States container ports affects or 
could affect United States economic security.
  (b) Contents.--In carrying out the study under subsection (a), the 
center selected under such subsection shall--
          (1) consider--
                  (A) changes in ownership of the 15 largest United 
                States container ports over the past 10 years as well 
                as announced ownership changes from 2023 and 2024;
                  (B) instances of ownership in individual marine 
                terminals and cumulative ownership by Chinese or 
                Russian entities or nationals;
                  (C) instances of ownership in individual marine 
                terminals and cumulative ownership by any foreign 
                entity;
                  (D) the amount of--
                          (i) Port Infrastructure Development Grant 
                        funds since fiscal year 2018 that have gone to 
                        ports and marine terminals that are owned 
                        wholly or partially foreign owned; and
                          (ii) Port Security Grant funds since fiscal 
                        year 2003 that have gone to ports and marine 
                        terminals that are owned wholly or partially 
                        foreign owned; and
                  (E) where ownership exists, a detailed description of 
                foreign operational control including both affirmative 
                and negative control; and
          (2) offer recommendations on--
                  (A) policies by ports and marine terminal operators 
                to prevent excessive foreign ownership that could 
                threaten United States economic security;
                  (B) whether ownership affords the foreign owner 
                access to operational technology and information unique 
                to the United States and otherwise unavailable; and
                  (C) whether foreign ownership has or could affect the 
                supply chain and policies related to the prioritization 
                of certain cargoes.
  (c) Report.--Not later than 1 year after the initiation of the 
evaluation under subsection (a), the Chairman of the Federal Maritime 
Commission shall submit to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives the results of such 
evaluation.

                         PURPOSE OF LEGISLATION

    The purpose of H.R. 3395, as amended, is to direct the 
Chairman of the Federal Maritime Commission (FMC) to seek to 
enter into an agreement with a federally funded research and 
development center to evaluate foreign ownership of marine 
terminals at the 15 largest United States container ports, and 
for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    The maritime transportation system (MTS) is a key 
contributor to commerce and is therefore essential to the 
economic health and prosperity of the United States. The past 
two years have demonstrated the fragility of not only the 
United States supply chain, but also the supply chain 
worldwide. Significant concerns exist over the ability of 
foreign adversaries to control or influence the commerce of the 
United States through investment or ownership of domestic 
assets. This legislation builds upon prior reports mandated 
under the James M. Inhofe National Defense Authorization Act 
for Fiscal Year 2023 (P.L. 117-263) that required relevant 
agencies to investigate the impact of foreign influence on 
United States shipping and commerce.\1\ During hearings, the 
Committee on Transportation and Infrastructure found that 
understanding the scope of foreign influence on United States 
commerce better positions the United States to compete 
effectively in international trade. Therefore, this legislation 
requires the FMC to produce a report specifically assessing the 
risks that foreign influence could pose to marine terminals at 
United States ports and the ways in which Congress can address 
any identified vulnerabilities.
---------------------------------------------------------------------------
    \1\James M. Inhofe National Defense Authorization Act for Fiscal 
Year 2023, Pub. L. No. 117-263 Sec. 3527, 136 Stat 2395.
---------------------------------------------------------------------------

                                HEARINGS

    For the purposes of rule XIII, clause 3(c)(6)(A) of the 
118th Congress, the following hearings were used to develop or 
consider H.R. 3395:
    On March 23, 2023, the Subcommittee on Coast Guard and 
Maritime Transportation of the Committee on Transportation and 
Infrastructure held a hearing entitled, ``Review of Fiscal Year 
2024 Budget Request for Federal Maritime Transportation 
Programs, and Implementation of the Ocean Shipping Reform Act 
of 2022.'' The hearing examined the President's Fiscal Year 
2024 Budget Request for the FMC and the Maritime Administration 
(MARAD). The Subcommittee received testimony from Rear Admiral 
Ann C. Phillips (Ret.), Administrator, United States Maritime 
Administration, United States Department of Transportation; The 
Honorable Daniel B. Maffei, Chairman, United States Federal 
Maritime Commission; and Nancy Wallace, Director, Marine Debris 
Program, Office of Response and Restoration, National Ocean 
Service, National Oceanic and Atmospheric Administration, 
United States Department of Commerce.
    Additionally, on March 28, 2023, the Subcommittee on Coast 
Guard and Maritime Transportation of the Committee on 
Transportation and Infrastructure held a hearing entitled, 
``Maritime Transportation Supply Chain Issues.'' The hearing 
examined the implementation of the Ocean Shipping Reform Act of 
2022 (P.L. 117-146) and continuing supply chain issues from the 
stakeholder perspective. The Subcommittee received testimony 
from Bud Darr, Executive Vice President, MSC Group on behalf of 
the World Shipping Council; Matthew Leech, President and Chief 
Executive Officer, Ports America; William H. ``Buddy'' Allen, 
President and Chief Executive Officer, American Cotton Shippers 
Association; and Mario Cordero, Executive Director, Port of 
Long Beach, California.

                 LEGISLATIVE HISTORY AND CONSIDERATION

    H.R. 3395, the ``U.S. Supply Chain Security Review Act of 
2023,'' was introduced in the United States House of 
Representatives on May 17, 2023, by Mr. Auchincloss of 
Massachusetts and Mr. Webster of Florida, and referred to the 
Committee on Transportation and Infrastructure. Within the 
Committee on Transportation and Infrastructure, H.R. 3395 was 
referred to the Subcommittee on Coast Guard and Maritime 
Transportation. The Subcommittee on Coast Guard and Maritime 
Transportation was discharged from further consideration of 
H.R. 3395 on May 23, 2023.
    The Committee considered H.R. 3395 on May 23, 2023, and 
ordered the measure to be reported to the House with a 
favorable recommendation, as amended, by voice vote.
    The following amendments were offered:
    An Amendment in the Nature of a Substitute to H.R. 3395 
offered by Mr. Auchincloss (#3A) was AGREED TO by voice vote.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against.
    No record votes were requested during consideration of H.R. 
3395, as amended.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               NEW BUDGET AUTHORITY AND TAX EXPENDITURES

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a statement as to whether this bill 
contains any new budget authority, spending authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. The Chairman of the Committee shall cause such 
estimate and statement to be printed in the Congressional 
Record upon its receipt by the Committee.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives, a cost 
estimate provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974 was not 
made available to the Committee in time for the filing of this 
report. The Chairman of the Committee shall cause such estimate 
to be printed in the Congressional Record upon its receipt by 
the Committee.

                    PERFORMANCE GOALS AND OBJECTIVES

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to 
provide to direct the Chairman of the Federal Maritime 
Commission to seek to enter into an agreement with a federally 
funded research and development center to evaluate foreign 
ownership of marine terminals at the 15 largest United States 
container ports.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3395, as amended, establishes or reauthorizes a program 
of the Federal government known to be duplicative of another 
Federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       FEDERAL MANDATES STATEMENT

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        PREEMPTION CLARIFICATION

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 3395, as amended, 
does not preempt any state, local, or tribal law.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the definition of Section 
5(b) of the appendix to Title 5, United States Code, are 
created by this legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    This section provides the short title of the bill as the 
``U.S. Supply Chain Security Review Act of 2023.''

Section 2. Study on foreign ports

    This section directs the Federal Maritime Commission to 
enter into an agreement with a Federally funded research and 
development center to evaluate how foreign ownership of marine 
terminals at the 15 largest United States container ports 
affects or could affect United States economic security.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    As reported by the Committee, H.R. 3395, as amended, makes 
no changes in existing law.

                                  [all]