50 U.S.C. § 98h–1: Strategic and Critical…

Summary

Creates a Strategic and Critical Materials Board of Directors to oversee the National Defense Stockpile. The Board is led by the Assistant Secretary of Defense for Industrial Base Policy. It also includes one person chosen by each of the Secretaries of Commerce, State, Energy, and the Interior; one person chosen by each of the Chair and Ranking Member of the House Readiness Subcommittee; one person chosen by each of the Chair and Ranking Member of the Senate Readiness Subcommittee; and four people picked by the Board chair who have relevant expertise. The Board must meet as needed but at least once a year. One common federal advisory rule (5 U.S.C. 1013(a)) does not apply to the Board. The Board itself must do certain key tasks and cannot give those duties to others. It must create bylaws; pick or remove its members; advise the Stockpile Manager; set and review performance measures each year; approve and review the Stockpile program’s budget and financial statements and move money within that budget when needed; review and approve the Annual Materials and Operations Plan and include the Board’s views in required reports; send an annual Board report; and recommend strategies to the Secretary of Defense to keep supplies of critical materials secure and to strengthen the industrial base. Definitions: "materials critical to national security" = materials needed to make or sustain military equipment whose supply could be cut off by outside events; "military equipment" = gear used directly by the Armed Forces for operations; "secure supply" = having available sources and the full supply chain for a material.

Title 50, §98h–1

War and National Defense, Source: USLM XML via OLRC

(a)Establishment

There is established a Strategic and Critical Materials Board of Directors (in this subchapter referred to as the “Board”).

(b)Members

The Board shall be composed, at a minimum, of the following:

(1)The Assistant Secretary of Defense for Industrial Base Policy, who shall serve as chairman of the Board.

(2)One designee of each of the Secretary of Commerce, the Secretary of State, the Secretary of Energy, and the Secretary of the Interior.

(3)One designee of each of the Chairman and Ranking Member of the Readiness Subcommittee of the House Committee on Armed Services.

(4)One designee of each of the Chairman and Ranking Member of the Readiness Subcommittee of the Senate Committee on Armed Services.

(5)Four designees of the chairman of the Board, who shall have expertise relating to military affairs, defense procurement, production of strategic and critical materials, finance, or any other disciplines deemed necessary by the chairman to conduct the business of the Board.

(c)Duties of the Board

In addition to other matters assigned to it by the chairman, the Board shall conduct the following, without power of delegation:

(1)Adopt by-laws that ensure sufficient oversight, governance, and effectiveness of the National Defense Stockpile program.

(2)Elect or remove Board members.

(3)Advise the National Defense Stockpile Manager.

(4)Establish performance metrics and conduct an annual performance review of the management and operations of the National Defense Stockpile program.

(5)Review and approve the annual budget of the National Defense Stockpile program and conduct appropriate reviews of annual financial statements.

(6)Re-allocate budget resources within the annual budget of the National Defense Stockpile program.

(7)Review and approve the Annual Materials and Operations Plan required by section 98h–2(a) of this title. The report required by section 98h–2(b)(2) of this title shall include the views and recommendations of the Board on the projected domestic and foreign economic effects of all acquisition of materials for and disposals of materials from the stockpile.

(8)Complete and submit the annual Board Report, in accordance with section 98h–2(b)(2) of this title.

(9)Recommend to the Secretary of Defense—

(A)a strategy to ensure a secure supply of materials designated as critical to national security; and

(B)such other strategies as the Board considers appropriate to strengthen the industrial base with respect to materials critical to national security.

(d)Board meetings

The Board shall meet as determined necessary by the chairman but not less frequently than once every year to fulfill the duties described in subsection (c).

(e)Application of provisions relating to Federal advisory committees

section 1013(a) of title 5 shall not apply to the Board.

(f)Definitions

In this section: (1) Materials critical to national security

(2)Military equipment

The term “military equipment” means equipment used directly by the Armed Forces to carry out military operations.

(3)Secure supply

The term “secure supply”, with respect to a material, means the availability of a source or sources for the material, including the full supply chain for the material and components containing the material.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 10 of act June 7, 1939, ch. 190, § 10, was renumbered section 13 and is classified to section 98h–4 of this title. Provisions similar to those in this section were contained in section 187 of Title 10, Armed Forces, prior to repeal by Pub. L. 117–263, § 1411(a).

Amendments

2023—Subsec. (c)(4). Pub. L. 118–31, § 1411(c)(1)(A), substituted “of the management and operations of the National Defense Stockpile program” for “of the National Defense Stockpile Manager”. Subsec. (c)(5), (6). Pub. L. 118–31, § 1411(c)(1)(B), redesignated pars. (6) and (7) as (5) and (6), respectively, and struck out former par. (5) which read as follows: “Set compensation for the National Defense Stockpile Manager.” Subsec. (c)(7). Pub. L. 118–31, § 1411(c)(1)(B), (C), redesignated par. (8) as (7) and substituted “required by section 98h–2(a) of this title. The report required by section 98h–2(b)(2) of this title shall include the views and recommendations of the Board on” for “required by section 98h–2(a)(2) of this title, including a review of” and “all acquisition of materials for and disposals of materials from the stockpile” for “proposed actions to be taken under the Annual Materials and Operations Plan”. Former par. (7) redesignated (6). Subsec. (c)(8) to (10). Pub. L. 118–31, § 1411(c)(1)(B), redesignated pars. (9) and (10) as (8) and (9), respectively. Subsec. (e). Pub. L. 118–31, § 1411(c)(2), amended subsec. (e) generally. Prior to amendment, text read as follows: “section 14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Board.” 2022—Pub. L. 117–263 amended section generally. Prior to amendment, section related to appointment of advisory committees and a Market Impact Committee. 1992—Subsec. (c). Pub. L. 102–484 added subsec. (c).

Statutory Notes and Related Subsidiaries

Advisory Committee Regarding Operation and Modernization of Stockpile Pub. L. 102–484, div. C, title XXXIII, § 3306, Oct. 23, 1992, 106 Stat. 2652, required the President to appoint, no later than Mar. 15, 1993, an advisory committee to make recommendations concerning the operation and modernization of the National Defense Stockpile.

§98h–1 Strategic and Critical Materials Board of Directors