I 117TH CONGRESS 1ST SESSION H. R. 3848 To establish the National Commission on Critical Supply Chains, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 11, 2021 Mr. RYAN (for himself and Mr. POSEY) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To establish the National Commission on Critical Supply Chains, 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 ‘‘Critical Supply Chains 4 Commission Act’’. 5 SEC. 2. FINDINGS; SENSE OF CONGRESS. 6 (a) FINDINGS.—Congress finds the following: 7 (1) Many Americans were shocked to find that 8 the United States was unable to find or produce 9 enough face masks, ventilators, hand sanitizer, test- 10 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 3848 IH ing kits, hospital beds, sedatives, and other medical 1 necessities in response to the COVID–19 crisis due 2 to limitations in the manufacturing supply chain and 3 our dependence on foreign suppliers. 4 (2) Shortages of medical supplies and equip- 5 ment are just one example of the risks we face due 6 to the United States’ reliance on other countries for 7 making many of our critical products. The United 8 States also relies on other countries for— 9 (A) technologies involved with renewable 10 energies and car battery manufacturing; 11 (B) rare earth materials that are essential 12 to many high-technology products, including cell 13 phones, satellites, and computers; 14 (C) fabricating the most precise integrated 15 circuits and microchips that are needed for 16 complex electronics used in weapon systems, 17 space systems, automobiles, and a variety of 18 consumer products; 19 (D) production of advanced machine tools 20 and production equipment that U.S. factories 21 need to manufacture their products; 22 (E) delivery of precision scientific equip- 23 ment needed to produce breakthroughs in nano- 24 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 3848 IH technology, medicine, and future batteries for 1 electric vehicles; 2 (F) manufacturing of clothing and other 3 textiles; 4 (G) production and distribution of food 5 and agricultural goods; and 6 (H) other critical products where substan- 7 tial harm would come to U.S. economic secu- 8 rity, national defense, or way of life if the sup- 9 ply chains were compromised or no longer avail- 10 able. 11 (3) The American supply chain is the founda- 12 tion of our Nation’s economic competitiveness and is 13 the delivery system that moves products to con- 14 sumers in every State across the Nation. 15 (4) While U.S. manufacturers and domestic 16 suppliers have substantial resources, some domestic 17 capabilities and expertise have eroded due to reliance 18 on the global supply chain. 19 (5) Dependable and high-quality suppliers are 20 crucial assets to any manufacturing company since 21 manufacturers must get the right products to the 22 right place at the right time to be most successful. 23 (6) A secure and stable American supply chain 24 is a necessary component of a prosperous manufac- 25 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 3848 IH turing sector that contributes two trillion dollars an- 1 nually to the U.S. economy. 2 (7) United States manufacturers are a major 3 source of high quality employment in the U.S. at 4 roughly 9 percent of the workforce. 5 (8) United States manufacturers are a major 6 driver of innovation, responsible for more than two- 7 thirds of private sector research and development, 8 receiving more than 90 percent of new patents. 9 (9) United States manufacturers are essential 10 to ensuring our national defense and homeland secu- 11 rity, as they provide the tools, equipment, systems, 12 and protective gear for our military and first re- 13 sponders. 14 (10) Manufacturers must consider supply chain 15 risks and potential disruptions in their business deci- 16 sions, though many times supplier selection is driven 17 by fixed production costs and other primary factors. 18 (11) A more robust and resilient American sup- 19 ply chain is integral to the health and well-being of 20 our economy and of businesses across every State, 21 and improvements in the supply chain will drive af- 22 fordability, sustainability, and availability of prod- 23 ucts for our Nation. 24 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 3848 IH (b) SENSE OF CONGRESS.—It is the sense of Con- 1 gress that— 2 (1) a national commission on critical supply 3 chains will benefit the United States in several im- 4 portant ways; 5 (2) such a commission will provide expert 6 knowledge, guidance, and recommendations to Con- 7 gress on the complex and strategically important 8 issues related to bolstering American supply chains, 9 which will help Congress find common ground to ad- 10 vance supply chain policies and approaches that ben- 11 efit our Nation both today and far into the future; 12 (3) such a commission will provide rec- 13 ommendations to fix the shortcomings exposed in 14 our existing national manufacturing strategy, so 15 that we are prepared for the next crisis—whether it 16 is due to a pandemic, a war, natural disaster, or 17 something else—and that these strategic directions 18 will catalyze a much-needed update to our national 19 manufacturing strategy for revitalizing the U.S. 20 manufacturing sector and increasing our economic 21 growth; 22 (4) such a commission will establish the basis 23 for strengthening the security of, and adding resil- 24 iency to, an eroded American supply chain system, 25 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 3848 IH so that U.S. economic security, national defense, and 1 way of life are not harmed when natural disasters or 2 other events disrupt the supply of critical ingredi- 3 ents, components, or products from a specific source 4 or region; 5 (5) such a commission will trigger new domestic 6 manufacturing jobs as a result of the growth and in- 7 creased robustness in the domestic supply chain and 8 the manufacturing sector, and such domestic 9 sourcing will also improve the security of intellectual 10 property, reduce environmental impact and transpor- 11 tation costs due to fewer parts traveling overseas, 12 and encourage economic clusters for supporting op- 13 erations to be located near manufacturing facilities; 14 and 15 (6) such a commission will improve the Nation’s 16 national defense and homeland security by reducing 17 vulnerabilities and risks due to excessive reliance on 18 foreign sources of critical materials or components. 19 SEC. 3. NATIONAL COMMISSION ON CRITICAL SUPPLY 20 CHAINS. 21 (a) ESTABLISHMENT.—Congress shall establish a 22 National Commission on Critical Supply Chains (referred 23 to in this section as the ‘‘Commission’’). 24 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 3848 IH (b) PURPOSES.—The purposes of the Commission 1 shall be to— 2 (1) convene an independent entity that brings 3 together national experts in a highly visible forum to 4 conduct a systematic study and give guidance to 5 Congress on the complex and strategically important 6 issues related to rebuilding critical American supply 7 chains; 8 (2) identify the critical supply chains in which 9 the United States is dependent on materials, prod- 10 ucts, equipment, or services from foreign countries 11 and in which substantial harm would come to U.S. 12 economic security, national defense, or way of life if 13 those supply chains were compromised or no longer 14 available; 15 (3) investigate in depth and report on existing 16 dependencies, limitations, and risks to the United 17 States for each of these critical supply chains, in- 18 cluding considerations for medical supplies, equip- 19 ment, and medications; rare earth materials; preci- 20 sion-integrated circuits and microchips; machine 21 tools and production equipment; defense components 22 and homeland security capabilities; scientific equip- 23 ment needed for advanced technology research and 24 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 3848 IH development; clothing and textiles; and food and ag- 1 ricultural products; 2 (4) assess and provide guidance on key ques- 3 tions, including— 4 (A) which driving forces are pushing U.S. 5 companies to offshore their procurement or 6 their manufacturing operations; 7 (B) how the United States can predict and 8 prevent future supply chain disruptions; 9 (C) what the United States can do to re- 10 duce future vulnerabilities and risks; 11 (D) whether the United States can make 12 the American supply chain resilient enough to 13 protect necessary capabilities and resources; 14 (E) which manufacturing activities should 15 be performed strictly within the United States 16 to ensure economic and national security; 17 (F) what actions should be taken by the 18 United States to increase domestic manufac- 19 turing to meet critical supply chain needs and 20 improve its terms of trade; and 21 (G) what would be the effects of a new na- 22 tional manufacturing strategy on employment, 23 growth, innovation, and national security; and 24 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 3848 IH (5) develop and propose specific recommenda- 1 tions, submit a biannual comprehensive report (and 2 intermediate updates as necessary to maintain time- 3 ly and relevant information), and provide Congres- 4 sional oversight to Congress to be used as a resource 5 for legislative actions to mitigate the risks of future 6 American supply chain disruptions. 7 (c) MEMBERSHIP.— 8 (1) MEMBERS.—The Commission shall be com- 9 posed of 12 members, of whom— 10 (A) three members shall be appointed by 11 the Speaker of the House of Representatives, in 12 consultation with the chairpersons of relevant 13 committees, including the Committee on Ways 14 and Means, Committee on Energy and Com- 15 merce, Committee on Science, Space, and Tech- 16 nology, Committee on Transportation and In- 17 frastructure, Committee on Armed Services, 18 Committee on Natural Resources, Committee 19 on Small Business, Committee on Homeland 20 Security, and Committee on Agriculture of the 21 House of Representatives; 22 (B) three members shall be appointed by 23 the minority leader of the House of Representa- 24 tives, in consultation with the ranking minority 25 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 3848 IH Members of relevant committees, including the 1 Committees described in subparagraph (A); 2 (C) three members shall be appointed by 3 the President pro tempore of the Senate upon 4 the recommendation of the majority leader of 5 the Senate, in consultation with the chair- 6 persons of relevant committees, including the 7 Committee on Finance, Committee on Com- 8 merce, Science, and Technology, Committee on 9 Armed Services, Committee on Energy and 10 Natural Resources, Committee on Small Busi- 11 ness and Entrepreneurship, Committee on 12 Homeland Security and Governmental Affairs, 13 Committee on Environment and Public Works, 14 and Committee on Agriculture, Nutrition, and 15 Forestry of the Senate; and 16 (D) three members shall be appointed by 17 the President pro tempore of the Senate upon 18 the recommendation of the minority leader of 19 the Senate, in consultation with the ranking mi- 20 nority Members of relevant committees, includ- 21 ing the Committees described in subparagraph 22 (C). 23 (2) CHAIR; VICE CHAIR.— 24 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 3848 IH (A) APPOINTMENT.—Not later than 30 1 days after the initial meeting of the Commis- 2 sion, the Commission shall elect a Chair and 3 Vice Chair from among the Commission’s mem- 4 bers by a simple majority vote, and such Chair 5 and Vice Chair shall be members of the Com- 6 mission who were appointed by appointing au- 7 thorities from different political parties under 8 paragraph (1). 9 (B) PRESENCE.—For purposes of appoint- 10 ing the Chair, all 12 members must be present. 11 If all 12 members are not present, appointment 12 of the chair shall be delayed until the next 13 meeting of the Commission at which all 12 14 members are present. 15 (C) TIMING.—If a quorum is not present 16 at that initial meeting, the Chair shall be ap- 17 pointed at the first meeting after that at which 18 a quorum is present. If a Vice Chair is elected 19 before the Chair and no Chair is elected, the 20 Vice Chair shall serve as acting Chair until the 21 Chair is elected. 22 (D) NEW CHAIR AND VICE CHAIR EACH 23 CONGRESS.—A new Chair and Vice Chair shall 24 be elected with respect to each Congress. Any 25 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3848.IH H3848 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 3848 IH member that was a Chair or Vice Chair in a 1 Congress may not be elected to be a Chair or 2 Vice Chair in a subsequent Congress. 3 (3) QUALIFICATIONS.— 4 (A) AREAS OF EXPERTISE.— 5 (i) IN GENERAL.—Each individual ap- 6 pointed to the Commission shall have sub- 7 stantial expertise in one or more of the fol- 8 lowing areas: 9 (I) Supply chain expertise, in- 10 cluding the following: 11 (aa) Advanced manufac- 12 turing, with a focus on distrib- 13 uted operations and supply chain 14 management. 15 (bb) Economics of U.S. 16 manufacturing. 17 (cc) Supply chain logistics. 18 (dd) Supplier certification 19 and quality assurance processes. 20 (ee) Raw materials sourcing 21 and distribution. 22 (ff) Metrics used by Original 23 Equipment Manufacturer pur- 24 chasing managers and chief fi- 25 VerDate Sep 11 2014 01:49 Jul 14, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3848. 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