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106TH CONGRESS

1ST SESSION H. R. 1715

To extend the expiration date of the Defense Production Act of 1950, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 6, 1999

Mr. BACHUS (for himself and Ms. WATERS) (both by request), introduced the

following bill; which was referred to the Committee on Banking and Financial Services

A BILL

To extend the expiration date of the Defense Production

Act of 1950, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Defense Production

5 Act Amendments of 1999’’.

6 SEC. 2. EXTENSION OF THE DEFENSE PRODUCTION ACT OF

7 1950.

8 Subsection 717(a) of the Defense Production Act of

9 1950 (50 U.S.C. App. 2166(a)) is amended in the first

10 sentence by striking ‘‘Title I (except section 104), title III,
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1 and title VII (except sections 708 and 721), and all au2 thority conferred thereunder, shall terminate at the close

3 of September 30, 1999’’ and inserting ‘‘Title I (except sec4 tion 104), title III, and title VII (except sections 707, 708,

5 and 721), and all authority conferred thereunder, shall

6 terminate at the close of September 30, 2002’’.

7 SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

8 Section 711(b) of the Defense Production Act of

9 1950 (50 U.S.C. App. 2161(b)) is amended by striking

10 ‘‘1996, 1997, 1998, and 1999’’ and inserting ‘‘2000,

11 2001, and 2002’’.

12 SEC. 4. LOAN GUARANTEES.

13 Section 301 of the Defense Production Act of 1950

14 (50 U.S.C. App. 2091) is amended—

15 (1) in subsection (a), by inserting ‘‘create,

16 maintain,’’ after ‘‘guaranteeing agency to be nec17 essary to’’;

18 (2) in subsection (a)(3)(D), by striking ‘‘output

19 of domestic industrial capability’’ and inserting

20 ‘‘foreseeable output of domestic industrial capa21 bility’’; and

22 (3) in subsection (e)(1), by amending subpara23 graphs (A) through (C) to read as follows:

24 ‘‘(A) Except as provided in subparagraph

25 (D), no guarantee may be made under this sec-
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1 tion until 30 days after the President notifies

2 Congress of an industrial resource or critical

3 technology item shortfall which such guarantee

4 is intended to correct and that such guarantee

5 is in accordance with the provisions of sub6 section (a)(3) of this section.

7 ‘‘(B) Notification shall be transmitted in

8 the budget or in writing to the Committee on

9 Banking, Housing, and Urban Affairs of the

10 Senate and the Committee on Banking and Fi11 nancial Services of the House of Representa12 tives.

13 ‘‘(C) If the making of any guarantee or

14 guarantees to correct an industrial resource

15 shortfall would cause the aggregate outstanding

16 amount of all guarantees for such shortfall to

17 exceed $50,000,000, any such guarantee or

18 guarantees may be made only if specifically au19 thorized by law.’’.

20 SEC. 5. LOANS TO PRIVATE BUSINESS ENTERPRISES.

21 Section 302 of the Defense Production Act of 1950

22 (50 U.S.C. App. 2092) is amended—

23 (1) in subsection (a), by striking ‘‘for the ex24 pansion of capacity’’ and inserting ‘‘for the creation,

25 maintenance, or expansion of capacity’’;
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1 (2) in subsection (b)(2)(D), by striking ‘‘output

2 of domestic industrial capability’’ inserting ‘‘foresee3 able output of domestic industrial capability’’; and

4 (3) in subsection (c) by amending paragraphs

5 (1) through (3) to read as follows:

6 ‘‘(1) Except as provided in paragraph (4), no

7 loan may be made under this section until 30 days

8 after the President notifies Congress of an industrial

9 resource or critical technology item shortfall which

10 such loan is intended to correct and that such loan

11 is in accordance with the provisions of subsection

12 (b)(2) of this section.

13 ‘‘(2) Notification shall be transmitted in the

14 budget or in writing to the Committee on Banking,

15 Housing, and Urban Affairs of the Senate and the

16 Committee on Banking and Financial Services of the

17 House of Representatives.

18 ‘‘(3) If the making of any loan or loans to cor19 rect an industrial resource shortfall would cause the

20 aggregate outstanding amount of all loans for such

21 shortfall to exceed $50,000,000, any such loan or

22 loans may be made only if specifically authorized by

23 law.’’.
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1 SEC. 6. PURCHASES OF MATERIALS AND INSTALLATION OF

2 EQUIPMENT.

3 Section 303 of the Defense Production Act of 1950

4 (50 U.S.C. App. 2093) is amended—

5 (1) by striking ‘‘SEC. 303.’’ at the beginning of

6 such section and inserting the following new section

7 heading:

8 ‘‘SEC. 303. REDUCTION OF INDUSTRIAL RESOURCE AND

9 CRITICAL TECHNOLOGY ITEM SHORTFALLS.’’;

10 (2) by amending paragraph (a)(1) to read as

11 follows:

12 ‘‘(a)(1) To reduce industrial resource and critical

13 technology item shortfalls, the President may make

14 provision—

15 ‘‘(A) for purchases of our commitments to pur16 chase an industrial resource or a critical technology

17 item, for Government use or resale;

18 ‘‘(B) for the encouragement of exploration, de19 velopment, and mining of critical and strategic ma20 terials, and other materials;

21 ‘‘(C) for the encouragement of development or

22 improvement of production capabilities of an indus23 trial resource or critical technology item; and

24 ‘‘(D) for the insertion of critical technology

25 items into military systems.’’;
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1 (3) in subparagraph (a)(5)(D) by striking ‘‘out2 put of domestic industrial capability’’ and inserting

3 ‘‘foreseeable output of domestic industrial capa4 bility’’;

5 (4) in subsection (a)(6), by amending subpara6 graphs (A) and (C) to read as follows:

7 ‘‘(A) Except as provided in paragraph (7),

8 no action may be taken under this subsection

9 until 30 days after the President notifies Con10 gress of an industrial resource or critical tech11 nology item shortfall which such action is in12 tended to correct and that such action is in ac13 cordance with the provisions of paragraph (5).

14 ‘‘(B) Notification shall be transmitted in

15 the budget or in writing to the Committee on

16 Banking, Housing, and Urban Affairs of the

17 Senate and the Committee on Banking and Fi18 nancial Services of the House of Representa19 tives.

20 ‘‘(C) If the taking of any action or actions

21 under this section to correct a shortfall would

22 cause the aggregate outstanding amount of all

23 such actions for such industrial resource short24 fall to exceed $50,000,000, any such action or
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1 actions may be taken only if specifically author2 ized by law.’’; and

3 (5) in subsection (g), by inserting ‘‘and for the

4 expansion of supply of difficult to procure spares

5 and other replenishment materiel.’’ after ‘‘other in6 dustrial resources’’.

7 SEC. 7. CIVIL-MILITARY INDUSTRIAL INTEGRATION.

8 Section 310 of the Defense Production Act of 1950

9 (50 U.S.C. App. 2099a) is amended to read as follows:

10 ‘‘SEC. 310. CIVIL-MILITARY INDUSTRIAL INTEGRATION.

11 ‘‘When in the judgment of the President such action

12 will reduce defense acquisition costs or strengthen indus13 trial capabilities needed to support the national defense,

14 the President, using authorities provided in this title, may

15 make provision to achieve integration of commercial and

16 military production.’’.

17 SEC. 8. TITLE III LOANS.

18 Title VII of the Defense Production Act of 1950 (50

19 U.S.C. App. 2151, et seq.) is amended by adding at the

20 end the following new section:

21 ‘‘SEC. 712. TITLE III LOANS.

22 ‘‘New direct loans may not be obligated and new loan

23 guarantees may not be committed except to the extent

24 that appropriations of budget authority to cover their cost
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1 are made in advance as required by section 504 of the

2 Federal Credit Reform Act of 1990.’’.

3 SEC. 9. TECHNICAL AMENDMENTS.

4 (a) Section 301(a) of the Defense Production Act of

5 1950 (50 U.S.C. App. 2091(a)) is amended by striking

6 ‘‘714(a)(1)’’ and inserting ‘‘702(16)’’.

7 (b) Section 301(e) of such Act (50 U.S.C. App.

8 2091(e)) is amended by striking ‘‘Identification of indus9 trial resource’’ and inserting ‘‘Identification of industrial

10 resource or critical technology item’’.

11 (c) Subparagraph 301(e)(1)(D)(ii) of such Act (50

12 U.S.C. App. 2091(e)(1)(D)(ii) is amended by inserting

13 ‘‘item’’ after ‘‘critical technology’’.

14 (d) Section 301(e)(2)(B) of such Act (50 U.S.C. App.

15 2091(e)(2)(B)) is amended by striking ‘‘, Finance and

16 Urban Affairs’’ and inserting ‘‘and Financial Services’’.

17 (e) Section 303(a)(7)(B) of such Act (50 U.S.C. App.

18 2093(a)(7)(B)) is amended by inserting ‘‘item’’ after

19 ‘‘critical technology’’.

20 (f) Section 304(b)(1) of the Defense Production Act

21 of 1950 (50 U.S.C. App. 2094(b)(1)) is amended in the

22 second sentence by striking ‘‘section 711(c)’’ and inserting

23 ‘‘section 711(b)’’.

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