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

Summary: Defense Production Act Reauthorization of 2003 - (Sec. 2) Amends the Defense Production Act of 1950 to extend its expiration date and authorization of appropriations through FY 2008.

(Sec. 3) Authorizes the President to: (1) take action to correct an industrial resource shortfall for radiation-hardened electronics to the extent that such action does not cause the aggregate outstanding amount of all such actions for industrial resource shortfalls 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. Requires a report from the Secretary of Defense to specified congressional committees on the current state of the domestic industrial base for, and Department of Defense requirements, intentions, and plans for, radiation-hardened electronics. (Sec. 4) Defines "critical infrastructure" under such Act as systems and assets, whether physical or cyber-based, so vital to the United States that their degradation or destruction would have a debilitating impact on national security, including national economic security and national public health or safety. (Sec. 6) Directs the Secretary to report to specified congressional committees 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. (Sec. 7) Requires the Secretary of Commerce, as part of an annual report from the President to specified congressional committees on the impact of offsets on U.S. defense preparedness, industrial competitiveness, employment, and trade, to: (1) detail the number of foreign contracts involving domestic contractors that used offsets or similar arrangements during the preceding five-year period; (2) calculate the values of such contracts and offsets; and (3) describe the impact of international or foreign sales of U.S. defense products and related offsets and arrangements on domestic prime contractors and lower-tier subcontractors during the preceding five-year period. Expresses the policy of Congress that the President shall designate a chairman of an interagency team to consult with foreign nations on limiting the adverse effects of offsets in defense procurement without damaging the U.S. economy, industrial base, or defense production or preparedness. Requires annual interagency team reports to Congress. Directs the interagency team to make recommendations to the President for modifications of any existing or proposed memorandum of understanding between the United States and one or more foreign countries relating to: (1) research, development, or production of defense equipment; or (2) the reciprocal procurement of defense items.

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 first 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, 2008''.
    (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 2008''.
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 
first 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. REPORT ON IMPACT OF OFFSETS ON DOMESTIC CONTRACTORS AND LOWER 
TIER SUBCONTRACTORS.
    (a) Examination of Impact Required.--
        (1) In general.--As part of the annual report required under 
    section 309(a) of the Defense Production Act of 1950 (50 U.S.C. 
    App. 2099(a)), the Secretary of Commerce (in this section referred 
    to as the ``Secretary'') shall--
            (A) detail the number of foreign contracts involving 
        domestic contractors that use offsets, industrial participation 
        agreements, or similar arrangements during the preceding 5-year 
        period;
            (B) calculate the aggregate, median, and mean values of the 
        contracts and the offsets, industrial participation agreements, 
        and similar arrangements during the preceding 5-year period; 
        and
            (C) describe the impact of international or foreign sales 
        of United States defense products and related offsets, 
        industrial participation agreements, and similar arrangements 
        on domestic prime contractors and, to the extent practicable, 
        the first 3 tiers of domestic contractors and subcontractors 
        during the preceding 5-year period in terms of domestic 
        employment, including any job losses, on an annual basis.
        (2) Use of internal documents.--To the extent that the 
    Department of Commerce is already in possession of relevant data, 
    the Department shall use internal documents or existing 
    departmental records to carry out paragraph (1).
        (3) Information from non-federal entities.--
            (A) Existing information.--In carrying out paragraph (1), 
        the Secretary shall only require a non-Federal entity to 
        provide information that is available through the existing data 
        collection and reporting systems of that non-Federal entity.
            (B) Format.--The Secretary may require a non-Federal entity 
        to provide information to the Secretary in the same form that 
        is already provided to a foreign government in fulfilling an 
        offset arrangement, industrial participation agreement, or 
        similar arrangement.
    (b) Report.--
        (1) In general.--Before the end of the 8-month period beginning 
    on the date of enactment of this Act, the Secretary shall submit to 
    Congress a report containing the findings and conclusions of the 
    Secretary with regard to the examination made pursuant to 
    subsection (a).
        (2) Copies of report.--The Secretary shall also transmit copies 
    of the report prepared under paragraph (1) to the United States 
    Trade Representative and the interagency team established pursuant 
    to section 123(c) of the Defense Production Act Amendments of 1992 
    (50 U.S.C. App. 2099 note).
    (c) Responsibilities Regarding Consultation With Foreign Nations.--
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.--
            ``(A) In general.--It is the policy of Congress that the 
        President shall designate a chairman of an interagency team 
        comprised of the Secretary of Commerce, Secretary of Defense, 
        United States Trade Representative, Secretary of Labor, and 
        Secretary of State to consult with foreign nations on limiting 
        the adverse effects of offsets in defense procurement without 
        damaging the economy or the defense industrial base of the 
        United States or United States defense production or defense 
        preparedness.
            ``(B) Meetings.--The President shall direct the interagency 
        team to meet on a quarterly basis.
            ``(C) Reports.--The President shall direct the interagency 
        team to submit to Congress an annual report, to be included as 
        part of the report required under section 309(a) of the Defense 
        Production Act of 1950 (50 U.S.C. App. 2099(a)), that describes 
        the results of the consultations of the interagency team under 
        subparagraph (A) and the meetings of the interagency team under 
        subparagraph (B).
        ``(2) Recommendations for modifications.--The interagency team 
    shall submit to the President any recommendations for modifications 
    of any existing or proposed memorandum of understanding between 
    officials acting on behalf of the United States and one or more 
    foreign countries (or any instrumentality of a foreign country) 
    relating to--
            ``(A) research, development, or production of defense 
        equipment; or
            ``(B) the reciprocal procurement of defense items.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.