A bill to reauthorize the Defense Production Act of 1950, and for other purposes.

Summary: Defense Production Act Reauthorization of 2003 - Amends the Defense Production Act of 1950 to extend its expiration date and authorization of appropriations through FY 2004. Authorizes the President, under such Act, to: (1) correct the industrial shortfall for radiation-hardened electronics to the extent that such action does not cause the aggregate outstanding amount of all such actions to exceed $200 million; and (2) obtain information in order to perform industry studies assessing capabilities of the U.S. industrial base to support the national defense. Defines "critical infrastructure." Directs the Secretary of Defense to report to the House Financial Services Committee on the extent to which contracts entered into under such Act during the one-year period after the enactment of this Act have been contracts with minority- and women-owned businesses. States as the policy of Congress that the President shall designate the Secretary of Commerce to lead an interagency team to: (1) negotiate with foreign nations the elimination of offset arrangements, industrial participation, or similar arrangements in defense procurement; (2) make recommendations for modifications of memoranda of understanding with respect to such arrangements, pending their termination; and (3) notify the United States Trade Representative if a foreign country pursues a policy of offset or similar arrangements in connection with the purchase of defense equipment or supplies.

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.''.