S. 1680

One Hundred Eighth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,

the seventh day of January, two thousand and three

An Act

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 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
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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 WOMENOWNED 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 minorityand 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.
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(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).
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(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.