[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1738 Introduced in Senate (IS)]
1st Session
S. 1738
To reauthorize the Defense Production Act of 1950, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 15, 2003
Mr. Dodd introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reauthorize the Defense Production Act of 1950, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Defense Production Act
Reauthorization of 2003''.
SEC. 2. REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 1950.
(a) In General.--The 1st sentence of section 717(a) of the Defense
Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended--
(1) by striking ``sections 708'' and inserting ``sections
707, 708,''; and
(2) by striking ``September 30, 2003'' and inserting
``September 30, 2004''.
(b) Authorization of Appropriations.--Section 711(b) of the Defense
Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended by striking
``through 2003'' and inserting ``through 2004''.
SEC. 3. RESOURCE SHORTFALL FOR RADIATION-HARDENED ELECTRONICS.
(a) In General.--Notwithstanding the limitation contained in
section 303(a)(6)(C) of the Defense Production Act of 1950 (50 U.S.C.
App. 2093(a)(6)(C)), the President may take actions under section 303
of the Defense Production Act of 1950 to correct the industrial
resource shortfall for radiation-hardened electronics, to the extent
that such Presidential actions do not cause the aggregate outstanding
amount of all such actions to exceed $200,000,000.
(b) Report by the Secretary.--Before the end of the 6-month period
beginning on the date of the enactment of this Act, the Secretary of
Defense shall submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives describing--
(1) the current state of the domestic industrial base for
radiation-hardened electronics;
(2) the projected requirements of the Department of Defense
for radiation-hardened electronics;
(3) the intentions of the Department of Defense for the
industrial base for radiation-hardened electronics; and
(4) the plans of the Department of Defense for use of
providers of radiation-hardened electronics beyond the
providers with which the Department had entered into
contractual arrangements under the authority of the Defense
Production Act of 1950, as of the date of the enactment of this
Act.
SEC. 4. CLARIFICATION OF PRESIDENTIAL AUTHORITY.
Subsection (a) of section 705 of the Defense Production Act of 1950
(50 U.S.C. App. 2155(a)) is amended by inserting after the end of the
1st sentence the following new sentence: ``The authority of the
President under this section includes the authority to obtain
information in order to perform industry studies assessing the
capabilities of the United States industrial base to support the
national defense.''.
SEC. 5. CRITICAL INFRASTRUCTURE PROTECTION AND RESTORATION.
Section 702 of the Defense Production Act of 1950 (50 U.S.C. App.
2152) is amended--
(1) by redesignating paragraphs (3) through (17) as
paragraphs (4) through (18), respectively;
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) Critical infrastructure.--The term `critical
infrastructure' means any systems and assets, whether physical
or cyber-based, so vital to the United States that the
degradation or destruction of such systems and assets would
have a debilitating impact on national security, including, but
not limited to, national economic security and national public
health or safety.''; and
(3) in paragraph (14) (as so redesignated by paragraph (1)
of this section), by inserting ``and critical infrastructure
protection and restoration'' before the period at the end of
the last sentence.
SEC. 6. REPORT ON CONTRACTING WITH MINORITY- AND WOMEN-OWNED
BUSINESSES.
(a) Report Required.--Before the end of the 1-year period beginning
on the date of the enactment of this Act, the Secretary of Defense
shall submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives on the extent to which contracts entered into
during the fiscal year ending before the end of such 1-year period
under the Defense Production Act of 1950 have been contracts with
minority- and women-owned businesses.
(b) Contents of Report.--The report submitted under subsection (a)
shall include the following:
(1) The types of goods and services obtained under
contracts with minority- and women-owned businesses under the
Defense Production Act of 1950 in the fiscal year covered in
the report.
(2) The dollar amounts of such contracts.
(3) The ethnicity of the majority owners of such minority-
and women-owned businesses.
(4) A description of the types of barriers in the
contracting process, such as requirements for security
clearances, that limit contracting opportunities for minority-
and women-owned businesses, together with such recommendations
for legislative or administrative action as the Secretary of
Defense may determine to be appropriate for increasing
opportunities for contracting with minority- and women-owned
businesses and removing barriers to such increased
participation.
(c) Definitions.--For purposes of this section, the terms ``women-
owned business'' and ``minority-owned business'' have the meanings
given such terms in section 21A(r) of the Federal Home Loan Bank Act,
and the term ``minority'' has the meaning given such term in section
1204(c)(3) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
SEC. 7. COMMERCE RESPONSIBILITIES REGARDING CONSULTATION WITH FOREIGN
NATIONS.
(a) Offsets in Defense Procurements.--Section 123(c) of the Defense
Production Act Amendments of 1992 (50 U.S.C. App. 2099 note) is amended
to read as follows:
``(c) Negotiations.--
``(1) Interagency team.--It is the policy of Congress that
the President shall designate the Secretary of Commerce to
lead, in coordination with the Secretary of State, an
interagency team to negotiate with foreign nations the
elimination of offset arrangements, industrial participation,
or similar arrangements in defense procurement. The President
shall transmit an annual report on the results of these
negotiations to the Congress as part of the report required
under section 309(a) of the Defense Production Act of 1950.
``(2) Recommendations for modifications.--Pending the
elimination of the arrangements described in paragraph (1), the
interagency team shall submit to the Secretary of Defense any
recommendations for modifications of a memorandum of
understanding entered into under section 2531 of title 10,
United States Code, or a related agreement that the team
considers to be an appropriate response to a contractual
offset, industrial participation, or similar arrangement that
is entered into under the policy to which section 2532 of such
title applies.
``(3) Notification to ustr regarding offsets.--If the
interagency team determines that a foreign country is pursuing
a policy on contractual offset arrangements, industrial
participation arrangements, or similar arrangements in
connection with the purchase of defense equipment or supplies
that requires compensation for the purchase in the form of
nondefense or dual-use equipment or supplies in a value greater
than the defense equipment or supplies, the team shall notify
the United States Trade Representative of that determination.
Upon receipt of the notification, the United States Trade
Representative shall treat the policy and each such arrangement
as an act, policy, or practice by the foreign country that is
unjustifiable and burdens or restricts United States commerce
for purposes of section 304(a)(1) of the Trade Act of 1974 (19
U.S.C. 2414(a)(1)), and shall take appropriate action under
title III of such Act with respect to such country.''.
(b) Report on Effects of Foreign Contracts on Domestic
Contractors.--Section 309(d)(1) of the Defense Production Act of 1950
(50 U.S.C. App. 2099(d)(1)) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
and
(2) in subparagraph (E), by striking the period at the end
and inserting the following: ``; and
``(F) a compilation of data delineating--
``(i) the impact of foreign contracts that
have been awarded through offsets, industrial
participation agreements, or similar
arrangements, on domestic prime contractors,
and at least the first three tiers of
subcontractors; and
``(ii) details of contracts with foreign
1st, 2nd, and 3rd tier subcontractors awarded
through offsets, industrial participation
agreements, or similar arrangements.''.
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