National Manufacturing Guard Act

II 117TH CONGRESS 1ST SESSION S. 869 To establish the Office of Supply Chain Preparedness within the Department of Commerce to manage the partnership of the United States with private industry and State and local governments with respect to the manufacturing of critical resources, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 18, 2021 Mr. COONS (for himself, Mr. RUBIO, Ms. HASSAN, and Mr. CORNYN) intro- duced the following bill; which was read twice and referred to the Com- mittee on Commerce, Science, and Transportation A BILL To establish the Office of Supply Chain Preparedness within the Department of Commerce to manage the partnership of the United States with private industry and State and local governments with respect to the manufacturing of critical resources, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘National Manufac- 4 turing Guard Act’’. 5 SEC. 2. SENSE OF CONGRESS. 6 It is the sense of Congress that— 7 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 869 IS (1) the COVID–19 pandemic has— 1 (A) exposed significant vulnerabilities in 2 the manufacturing sector of the economy of the 3 United States; and 4 (B) led to equipment shortages, supply 5 chain bottlenecks, and workforce misalignments; 6 (2) the vulnerabilities described in paragraph 7 (1) go largely unnoticed until those vulnerabilities 8 are revealed by crises, such as disease outbreaks, 9 cyber attacks, natural disasters, national security 10 threats, wars, trade wars, embargoes, and other 11 emergencies; 12 (3) the crises described in paragraph (2) 13 produce valuable information, the collection and 14 analysis of which can inform policies to fortify the 15 economy of the United States against future threats; 16 (4) the responsibility for promoting the eco- 17 nomic resilience of the United States lies with the 18 Federal Government, which must not miss the op- 19 portunity presented by the COVID–19 pandemic to 20 learn from that crisis and prepare the United States 21 to better withstand future emergencies; and 22 (5) the Federal Government has an interest in 23 increasing educational and training opportunities for 24 underrepresented minorities, women, and veterans. 25 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 869 IS SEC. 3. DEFINITIONS. 1 In this Act: 2 (1) COUNCIL.—The term ‘‘Council’’ means the 3 Supply Chain Advisory Council established under 4 section 5. 5 (2) CRISIS.—The term ‘‘crisis’’ means a situa- 6 tion that threatens the ability of manufacturers and 7 supply chains in the United States to provide suffi- 8 cient critical resources. 9 (3) CRITICAL RESOURCES.—The term ‘‘critical 10 resources’’— 11 (A) means supplies that— 12 (i) are life-sustaining or otherwise 13 critical to the national security of the 14 United States; and 15 (ii) may be subject to national short- 16 ages during a pandemic, cyber attack, nat- 17 ural disaster, or other catastrophic event; 18 and 19 (B) includes items classified as— 20 (i) personal protective equipment; 21 (ii) pharmaceuticals or biopharma- 22 ceuticals; 23 (iii) medical supplies; or 24 (iv) other resources to be determined 25 by the Director, in consultation with the 26 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 869 IS Council, which may include healthcare-re- 1 lated supplies or other supplies. 2 (4) DATA EXCHANGE.—The term ‘‘Data Ex- 3 change’’ means the Supply Chain Data Exchange es- 4 tablished under section 7. 5 (5) DIRECTOR.—The term ‘‘Director’’ means 6 the Director of the Office. 7 (6) GUARD.—The term ‘‘Guard’’ means the 8 National Manufacturing Guard established under 9 section 6. 10 (7) HOST ORGANIZATION.—The term ‘‘host or- 11 ganization’’ means an entity that— 12 (A) offers an apprenticeship with respect 13 to which there is a registered apprenticeship 14 program (as defined in section 29.2 of title 29, 15 Code of Federal Regulations, or any successor 16 regulation); and 17 (B) is— 18 (i) a business; 19 (ii) an industry consortium or trade 20 group; 21 (iii) a Manufacturing USA institute; 22 (iv) an MEP center; 23 (v) an academic or research institute, 24 or 25 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 869 IS (vi) a labor organization. 1 (8) INDUSTRY PARTNER.—The term ‘‘industry 2 partner’’ means a manufacturer, producer, supplier, 3 or distributor of a critical resource. 4 (9) MANUFACTURING CORPS.—The term ‘‘Man- 5 ufacturing Corps’’ means the Manufacturing Corps 6 established under section 8. 7 (10) MANUFACTURING USA INSTITUTE.—The 8 term ‘‘Manufacturing USA institute’’ means an in- 9 stitute described in section 34(d) of the National In- 10 stitute of Standards and Technology Act (15 U.S.C. 11 278s(d)). 12 (11) MEP CENTER.—The term ‘‘MEP center’’ 13 has the meaning given the term ‘‘Center’’ in section 14 25(a) of the National Institute of Standards and 15 Technology Act (15 U.S.C. 278k(a)). 16 (12) OFFICE.—The term ‘‘Office’’ means the 17 Office of Supply Chain Preparedness established 18 under section 4. 19 (13) REGISTERED APPRENTICESHIP.—The term 20 ‘‘registered apprenticeship’’— 21 (A) means an apprenticeship with a host 22 organization for which there is a registration of 23 an apprenticeship agreement (as defined in sec- 24 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 869 IS tion 29.2 of title 29, Code of Federal Regula- 1 tions, or any successor regulation); and 2 (B) does not include an apprenticeship 3 under an Industry-Recognized Apprenticeship 4 Program under subpart B of part 29 of title 5 29, Code of Federal Regulations, or any suc- 6 cessor regulation. 7 (14) SECRETARY.—The term ‘‘Secretary’’ 8 means the Secretary of Commerce. 9 SEC. 4. OFFICE OF SUPPLY CHAIN PREPAREDNESS. 10 (a) ESTABLISHMENT.—There is established within 11 the Department of Commerce the Office of Supply Chain 12 Preparedness. 13 (b) DIRECTOR.—The Office shall be headed by a Di- 14 rector, to be appointed by the Secretary. 15 (c) PURPOSE.—The purpose of the Office shall be 16 to— 17 (1) establish and manage the partnerships of 18 the Federal Government with industry partners and 19 State, local, territorial, and Tribal governments to 20 respond to crises; 21 (2) develop capabilities to— 22 (A) determine which resources qualify as 23 critical resources; 24 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 869 IS (B) make the supply of critical resources 1 more resilient; and 2 (C) coordinate the distribution of critical 3 resources to areas that have the greatest needs 4 during a crisis; and 5 (3) develop contingency plans to ensure a ro- 6 bust supply chain response for potential crises. 7 (d) DUTIES.—The Director shall— 8 (1) determine— 9 (A) the responsibilities of members of the 10 Council; and 11 (B) the procedures governing the service of 12 members of the Council; 13 (2) establish procedures relating to the oper- 14 ation of the Council, including the frequency with 15 which the Council meets; 16 (3) identify critical vulnerabilities in the supply 17 chains of critical resources, including vulnerabilities 18 exacerbated by the COVID–19 pandemic; 19 (4) coordinate the preparedness and response of 20 the supply chains of critical resources during a crisis 21 by— 22 (A) coordinating with Federal agencies; 23 (B) managing partnerships of the Federal 24 Government with industry partners; and 25 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 869 IS (C) directing the Guard; 1 (5) direct the establishment and operations of 2 the Guard, the Data Exchange, and the Manufac- 3 turing Corps; and 4 (6) maintain collaborations with industry part- 5 ners that contribute to the Data Exchange. 6 (e) REPORTS.— 7 (1) REPORT ON DIRECTOR.—Not later than 30 8 days after the date of enactment of this Act, the 9 Secretary shall submit to Congress a report relating 10 to the appointment of the Director. 11 (2) REPORT ON COUNCIL.—Not later than 180 12 days after the date of enactment of this Act, the Di- 13 rector shall submit to Congress a report that— 14 (A) identifies the members of the Council; 15 and 16 (B) states, with respect to the members of 17 the Council— 18 (i) the respective areas of expertise of 19 the members; and 20 (ii) the expected roles of the members. 21 (3) REPORT ON ACTIVITIES.—Not later than 1 22 year after the date of enactment of this Act, the Di- 23 rector shall submit to Congress a report that in- 24 cludes— 25 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 869 IS (A) a summary of the activities of the 1 Council and the Office; and 2 (B) a preliminary plan for— 3 (i) the establishment of the Guard, 4 the Data Exchange, and the Manufac- 5 turing Corps, including cost estimates, pre- 6 liminary timelines, and expected resource 7 needs; and 8 (ii) carrying out the responsibilities of 9 the Director under sections 6, 7, and 8. 10 (4) ANNUAL REPORT.—Not later than 2 years 11 after the date of enactment of this Act, and annually 12 thereafter, the Council shall submit to Congress a 13 report that includes— 14 (A) a list of resources that the Director 15 has determined to be critical resources and the 16 justification for the determination; 17 (B) a list of manufacturing and supply 18 chain vulnerabilities identified under subsection 19 (d)(3); and 20 (C) recommendations for mitigating the 21 vulnerabilities listed under subparagraph (B). 22 (f) STAFF.—The Director may appoint staff to man- 23 age the operations of the Office and the Council. 24 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 869 IS SEC. 5. SUPPLY CHAIN ADVISORY COUNCIL. 1 (a) ESTABLISHMENT.—The Secretary shall establish 2 the Supply Chain Advisory Council. 3 (b) PURPOSE.—The purpose of the Council is to ad- 4 vise the Director on manufacturing and supply chain logis- 5 tics that would be necessary to direct the response of the 6 supply chain of the United States during a crisis. 7 (c) COMPOSITION.— 8 (1) IN GENERAL.—The Council shall be com- 9 prised of the following members: 10 (A) A representative of the Department of 11 Health and Human Services, who shall be ap- 12 pointed by the Secretary of Health and Human 13 Services. 14 (B) A representative of the Department of 15 Homeland Security, who shall be appointed by 16 the Secretary of Homeland Security. 17 (C) A representative of the Department of 18 Defense, who shall be appointed by the Sec- 19 retary of Defense. 20 (D) A representative of the Department of 21 Energy, who shall be appointed by the Sec- 22 retary of Energy. 23 (E) A representative of the Department of 24 Transportation, who shall be appointed by the 25 Secretary of Transportation. 26 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 869 IS (F) A representative of the United States 1 International Trade Commission, who shall be 2 appointed by the Chair of the United States 3 International Trade Commission. 4 (G) A representative of the Department of 5 State, who shall be appointed by the Secretary 6 of State. 7 (H) A representative of the Office of the 8 Director of National Intelligence, who shall be 9 appointed by the Director of National Intel- 10 ligence. 11 (I) The director of a Manufacturing USA 12 institute, who shall be appointed by the Sec- 13 retary. 14 (J) The director of an MEP center, who 15 shall be appointed by the Secretary. 16 (K) A representative of State governments, 17 who shall be appointed by the Secretary in, con- 18 sultation with Governors of States; 19 (L) Not less than 1 representative of a 20 local, territorial, or Tribal government, who 21 shall be appointed by the Secretary. 22 (M) Not less than 3 manufacturing or sup- 23 ply chain experts, who shall be appointed by the 24 Secretary and represent each of, respectively— 25 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 869 IS (i) private industry; 1 (ii) labor organizations; and 2 (iii) research institutions. 3 (2) ADDITIONAL MEMBERS.—The Secretary 4 may appoint additional members to the Council on 5 a rotating or permanent basis. 6 (3) STATUS.—The members of the Council ap- 7 pointed under subparagraphs (K), (L), and (M) of 8 paragraph (1) shall serve as special Government em- 9 ployees (as defined in section 202 of title 18, United 10 States Code). 11 (d) DUTIES.—The Council shall— 12 (1) convene according to a schedule established 13 by the Director; and 14 (2) advise the Director on carrying out the du- 15 ties of the Director under section 4(d). 16 (e) PERMANENCE.—Section 14 of the Federal Advi- 17 sory Committee Act (5 U.S.C. App.) shall not apply to 18 the Council. 19 SEC. 6. NATIONAL MANUFACTURING GUARD. 20 (a) ESTABLISHMENT.— 21 (1) IN GENERAL.—There is established within 22 the Office the National Manufacturing Guard. 23 VerDate Sep 11 2014 22:34 Apr 11, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S869.IS S869 pamtmann on DSKBC07HB2PROD with BILLS 13 •S 869 IS (2) ELIGIBILITY REQUIREMENTS.—The Direc- 1 tor shall establish eligibility requirements for mem- 2 bership in the Guard, which may include— 3 (A) experience or expertise in manufac- 4 turing or logistics; 5 (B) holding a senior-level position in a 6 manufacturing or supply chain organization; 7 and 8 (C) direct experience in manufacturing and 9 supply chain operations. 10 (3) SIZE AND ORGANIZATION.—The Director, in 11 consultation with the Council, shall establish— 12 (A) the size of the Guard; 13 (B) the organization of the Guard; and 14 (C) the target skillsets of members of the 15 Guard. 16 (b) TRAINING.— 17 (1) IN GENERAL.—The Directo [Text truncated for display. 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