I
107TH CONGRESS
1ST SESSION
H. R. 2394
To amend the Defense Production Act of 1950 to establish the National
Defense Preparedness Domestic Industrial Base Board, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 28, 2001
Mr. KUCINICH (for himself, Mr. BROWN of Ohio, Mr. LATOURETTE, and Mrs.
JONES of Ohio) introduced the following bill; which was referred to the
Committee on Financial Services
A BILL
To amend the Defense Production Act of 1950 to establish
the National Defense Preparedness Domestic Industrial
Base Board, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Steel and National
Security Act’’.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) Domestic steel capacity is an essential part
of the domestic industrial and technological base, as
described in Executive Order Numbered 12919.
(2) Executive Order Numbered 12919—
(A) designates the Nation’s domestic in-
dustrial and technological base as the founda-
tion for national defense preparedness; and
(B) directs that authority provided under
the Defense Production Act of 1950 be used to
strengthen the domestic industrial and techno-
logical base to ensure that such base is capable
of responding to all threats to the national se-
curity of the United States.
(3) The influx of cheap imported steel illegally
dumped on the United States has brought about a
crisis in the United States’ steel industry that
threatens the viability of domestic steel production.
SEC. 3. PRODUCTIVE CAPACITY AND SUPPLY.
(a) AUTHORIZATION
OF APPROPRIATION.—Section
711(b) of the Defense Production Act of 1950 (50 U.S.C.
App. 2161(b)) is amended to read as follows:
‘‘(b) TITLE III AUTHORIZATION.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated for each of fiscal years 2002, 2003,
and 2004 not to exceed $1,000,000,000.
‘‘(2) PURCHASE COMMITMENTS.—Not less than
50 percent of the amount appropriated under para-
graph (1) for any fiscal year is authorized to be ap-
propriated solely for purchase commitments.’’.
(b) NATIONAL DEFENSE PREPAREDNESS DOMESTIC
INDUSTRIAL BASE BOARD.—Title III of the Defense Pro-
duction Act of 1950 (50 U.S.C. App. 2091 et seq.) is
amended by adding at the end the following new section:
‘‘SEC. 311. NATIONAL DEFENSE PREPAREDNESS DOMESTIC
INDUSTRIAL BASE BOARD.
‘‘(a) ESTABLISHMENT.—There is hereby established
a board to be known as the National Defense Prepared-
ness Domestic Industrial Base Board (hereafter in this
section referred to as the ‘Board’).
‘‘(b) MEMBERSHIP.—
‘‘(1) NUMBER AND APPOINTMENT.—The Board
shall consist of 5 members appointed by the Presi-
dent, from among individuals who—
‘‘(A) are or have been affiliated with the
Department of Defense or a military depart-
ment (as defined in section 101 of title 10,
United States Code; and
‘‘(B) have experience preparing the United
States for a national security emergency or
managing the development and acquisition of
weapons or other defense products.
‘‘(2) POLITICAL AFFILIATION.—Not more than
3 members may be of the same political party.
‘‘(3) TERMS.—
‘‘(A) IN GENERAL.—Each member shall be
appointed a term of 5 years, except as provided
in subparagraphs (A) and (B)
‘‘(B) TERMS OF INITIAL APPOINTEES.—As
designated by the President at the time of ap-
pointment, of the members first appointed—
‘‘(i) 1 shall be appointed for a term of
5 years;
‘‘(ii) 1 shall be appointed for a term
of 4 years;
‘‘(iii) 1 shall be appointed for a term
of 3 years;
‘‘(iv) 1 shall be appointed for a term
of 2 years; and
‘‘(v) 1 shall be appointed for a term
of 1 year.
‘‘(4) VACANCIES.—
‘‘(A) APPOINTMENT
FOR
BALANCE
OF
TERM.—Any member appointed to fill a va-
cancy occurring before the expiration of the
term for which the member’s predecessor was
appointed shall be appointed only for the re-
mainder of that term.
‘‘(B) 
CONTINUATION
OF
SERVICE.—A
member may serve after the expiration of that
member’s term until a successor has taken of-
fice.
‘‘(C) APPOINTMENT TO VACANCY.—A va-
cancy in the Board shall be filled in the manner
in which the original appointment was made.
‘‘(5) PROHIBITION OF COMPENSATION OF FED-
ERAL EMPLOYEES.—Members of the Board who are
full-time officers or employees of the United States
may not receive additional pay, allowances, or bene-
fits by reason of their service on the Board.
‘‘(6) TRAVEL EXPENSES.—Each member shall
receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and
5703 of title 5, United States Code.
‘‘(7) QUORUM.—3 members of the Board shall
constitute a quorum but a lesser number may hold
hearings.
‘‘(c) CHAIRPERSON.—The Chairperson of the Board
shall be designated by the President at the time of the
appointment.
‘‘(d) DUTIES.—
‘‘(1) IN GENERAL.—The Board shall take such
action as may be necessary to ensure uninterrupted
availability of national defense-related products,
services, and industrial resources through long-term
purchase agreements with domestic sources.
‘‘(2) ONE-TIME EN MASSE PURCHASES.—
‘‘(A) IN
GENERAL.—The Board may, in
the Board’s discretion, purchase domestic prod-
ucts, materials, or industrial resources from a
domestic concern that is at risk of bankruptcy
and whose failure would threaten a critical in-
dustry for national security, including the steel
industry, in which such concern is involved.
‘‘(B) STORAGE FOR USE.—Any product or
material purchased by the Board under sub-
paragraph (A) shall be kept in storage for use
in the event of a national emergency, in accord-
ance with the Strategic and Critical Materials
Stock Piling Act, or as the Secretary of Defense
or the Secretary of Energy may otherwise pro-
vide.
‘‘(3) STUDY
AND
MONITOR
CRITICAL
INDUS-
TRIES.—The Board shall study and monitor critical
industries, including the steel industry, for national
security and domestic concerns involved in any such
industry to determine which are in danger of failing
or otherwise losing the capacity to provide for na-
tional security.
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) DOMESTIC CONCERN.—The term ‘do-
mestic concern’ has the same meaning given in
section 104(h)(1) of the Foreign Corrupt Prac-
tices Act of 1977.
‘‘(B) DOMESTIC PRODUCT, MATERIAL, OR
INDUSTRIAL
RESOURCE.—The term ‘domestic
products, materials, or industrial resources’
means—
‘‘(i) in the case of unmanufactured
products, 
materials, 
or 
industrial 
re-
sources, products, materials, or resources
all or substantially all of which were mined
or produced in the United States; and
‘‘(ii) in the case of manufactured or
processed products, materials and indus-
trial resources—
‘‘(I) all or substantially all of the
component products, materials, or re-
sources were mined or produced in the
United States; and
‘‘(II) all or substantially all of
the manufacturing, processing, fab-
rication, or assembly of such product,
material or resource was conducted
within the United States.
‘‘(e) POWERS OF THE BOARD.—
‘‘(1) HEARINGS AND SESSIONS.—
‘‘(A) IN GENERAL.—The Board may, for
the purpose of carrying out this Act, hold hear-
ings, sit and act at times and places, take testi-
mony, and receive evidence as the Board con-
siders appropriate.
‘‘(B) OATHS
AND
AFFIRMATIONS.—The
Board may administer oaths or affirmations to
witnesses appearing before it.
‘‘(2) OBTAINING OFFICIAL DATA.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law, the Board may secure
directly from any department or agency of the
United States information necessary to enable
it to carry out this section.
‘‘(B) REQUEST FOR INFORMATION.—Upon
request of the Chairperson of the Board, the
head of the department or agency receiving the
request for information under subparagraph (A)
shall furnish that information to the Board.
‘‘(3) MAILS.—The Board may use the United
States mails in the same manner and under the
same conditions as other departments and agencies
of the United States.
‘‘(4) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon the request of the Board, the Administrator of
General Services shall provide to the Board, on a re-
imbursable basis, the administrative support services
necessary for the Board to carry out this section.
‘‘(f) STAFF.—
‘‘(1) APPOINTMENT.—The Board may appoint
and fix the pay of a Director and such additional
personnel as the Board considers appropriate.
‘‘(2) EXPERTS AND CONSULTANTS.—The Board
may procure temporary and intermittent services
under section 3109(b) of title 5, United States Code.
‘‘(3) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Board, the head of any Federal depart-
ment or agency may detail, on a reimbursable basis,
any of the personnel of that department or agency
to the Board to assist the Board in carrying out this
section.’’.
SEC. 4. MANDATORY REVIEW OF MERGERS, ACQUISITIONS,
AND TAKEOVERS OF DOMESTIC STEEL COM-
PANIES BY FOREIGN COMPANIES.
Section 721(b) of the Defense Production Act of
1950 (50 U.S.C. App. 2170(b)) is amended by inserting
before the period at the end of the 1st sentence ‘‘or in
any instance in which a person of a foreign country (as
defined in section 3502(d) of the Omnibus Trade and
Competitiveness Act of 1988) seeks to engage in any
merger, acquisition, or takeover that could result in the
control by such person of a domestic steel company’’.
SEC. 5. EXTENSION OF DEFENSE PRODUCTION ACT OF 1950.
Section 717(a) of the Defense Production Act of
1950 (50 U.S.C. App. 2166(a)) is amended by striking
‘‘September 30, 2001’’ and inserting ‘‘September 30,
2004’’.
Æ