I
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 Fi-
nancial Services
A BILL
To extend the expiration date of the Defense Production
Act of 1950, 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 ‘‘Defense Production
Act Amendments of 1999’’.
SEC. 2. EXTENSION OF THE DEFENSE PRODUCTION ACT OF
1950.
Subsection 717(a) of the Defense Production Act of
1950 (50 U.S.C. App. 2166(a)) is amended in the first
sentence by striking ‘‘Title I (except section 104), title III,
and title VII (except sections 708 and 721), and all au-
thority conferred thereunder, shall terminate at the close
of September 30, 1999’’ and inserting ‘‘Title I (except sec-
tion 104), title III, and title VII (except sections 707, 708,
and 721), and all authority conferred thereunder, shall
terminate at the close of September 30, 2002’’.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
Section 711(b) of the Defense Production Act of
1950 (50 U.S.C. App. 2161(b)) is amended by striking
‘‘1996, 1997, 1998, and 1999’’ and inserting ‘‘2000,
2001, and 2002’’.
SEC. 4. LOAN GUARANTEES.
Section 301 of the Defense Production Act of 1950
(50 U.S.C. App. 2091) is amended—
(1) in subsection (a), by inserting ‘‘create,
maintain,’’ after ‘‘guaranteeing agency to be nec-
essary to’’;
(2) in subsection (a)(3)(D), by striking ‘‘output
of domestic industrial capability’’ and inserting
‘‘foreseeable output of domestic industrial capa-
bility’’; and
(3) in subsection (e)(1), by amending subpara-
graphs (A) through (C) to read as follows:
‘‘(A) Except as provided in subparagraph
(D), no guarantee may be made under this sec-
tion until 30 days after the President notifies
Congress of an industrial resource or critical
technology item shortfall which such guarantee
is intended to correct and that such guarantee
is in accordance with the provisions of sub-
section (a)(3) of this section.
‘‘(B) Notification shall be transmitted in
the budget or in writing to the Committee on
Banking, Housing, and Urban Affairs of the
Senate and the Committee on Banking and Fi-
nancial Services of the House of Representa-
tives.
‘‘(C) If the making of any guarantee or
guarantees to correct an industrial resource
shortfall would cause the aggregate outstanding
amount of all guarantees for such shortfall to
exceed $50,000,000, any such guarantee or
guarantees may be made only if specifically au-
thorized by law.’’.
SEC. 5. LOANS TO PRIVATE BUSINESS ENTERPRISES.
Section 302 of the Defense Production Act of 1950
(50 U.S.C. App. 2092) is amended—
(1) in subsection (a), by striking ‘‘for the ex-
pansion of capacity’’ and inserting ‘‘for the creation,
maintenance, or expansion of capacity’’;
(2) in subsection (b)(2)(D), by striking ‘‘output
of domestic industrial capability’’ inserting ‘‘foresee-
able output of domestic industrial capability’’; and
(3) in subsection (c) by amending paragraphs
(1) through (3) to read as follows:
‘‘(1) Except as provided in paragraph (4), no
loan may be made under this section until 30 days
after the President notifies Congress of an industrial
resource or critical technology item shortfall which
such loan is intended to correct and that such loan
is in accordance with the provisions of subsection
(b)(2) of this section.
‘‘(2) Notification shall be transmitted in the
budget or in writing to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the
Committee on Banking and Financial Services of the
House of Representatives.
‘‘(3) If the making of any loan or loans to cor-
rect an industrial resource shortfall would cause the
aggregate outstanding amount of all loans for such
shortfall to exceed $50,000,000, any such loan or
loans may be made only if specifically authorized by
law.’’.
SEC. 6. PURCHASES OF MATERIALS AND INSTALLATION OF
EQUIPMENT.
Section 303 of the Defense Production Act of 1950
(50 U.S.C. App. 2093) is amended—
(1) by striking ‘‘SEC. 303.’’ at the beginning of
such section and inserting the following new section
heading:
‘‘SEC. 303. REDUCTION OF INDUSTRIAL RESOURCE AND
CRITICAL TECHNOLOGY ITEM SHORTFALLS.’’;
(2) by amending paragraph (a)(1) to read as
follows:
‘‘(a)(1) To reduce industrial resource and critical
technology item shortfalls, the President may make
provision—
‘‘(A) for purchases of our commitments to pur-
chase an industrial resource or a critical technology
item, for Government use or resale;
‘‘(B) for the encouragement of exploration, de-
velopment, and mining of critical and strategic ma-
terials, and other materials;
‘‘(C) for the encouragement of development or
improvement of production capabilities of an indus-
trial resource or critical technology item; and
‘‘(D) for the insertion of critical technology
items into military systems.’’;
(3) in subparagraph (a)(5)(D) by striking ‘‘out-
put of domestic industrial capability’’ and inserting
‘‘foreseeable output of domestic industrial capa-
bility’’;
(4) in subsection (a)(6), by amending subpara-
graphs (A) and (C) to read as follows:
‘‘(A) Except as provided in paragraph (7),
no action may be taken under this subsection
until 30 days after the President notifies Con-
gress of an industrial resource or critical tech-
nology item shortfall which such action is in-
tended to correct and that such action is in ac-
cordance with the provisions of paragraph (5).
‘‘(B) Notification shall be transmitted in
the budget or in writing to the Committee on
Banking, Housing, and Urban Affairs of the
Senate and the Committee on Banking and Fi-
nancial Services of the House of Representa-
tives.
‘‘(C) If the taking of any action or actions
under this section to correct a shortfall would
cause the aggregate outstanding amount of all
such actions for such industrial resource short-
fall to exceed $50,000,000, any such action or
actions may be taken only if specifically author-
ized by law.’’; and
(5) in subsection (g), by inserting ‘‘and for the
expansion of supply of difficult to procure spares
and other replenishment materiel.’’ after ‘‘other in-
dustrial resources’’.
SEC. 7. CIVIL-MILITARY INDUSTRIAL INTEGRATION.
Section 310 of the Defense Production Act of 1950
(50 U.S.C. App. 2099a) is amended to read as follows:
‘‘SEC. 310. CIVIL-MILITARY INDUSTRIAL INTEGRATION.
‘‘When in the judgment of the President such action
will reduce defense acquisition costs or strengthen indus-
trial capabilities needed to support the national defense,
the President, using authorities provided in this title, may
make provision to achieve integration of commercial and
military production.’’.
SEC. 8. TITLE III LOANS.
Title VII of the Defense Production Act of 1950 (50
U.S.C. App. 2151, et seq.) is amended by adding at the
end the following new section:
‘‘SEC. 712. TITLE III LOANS.
‘‘New direct loans may not be obligated and new loan
guarantees may not be committed except to the extent
that appropriations of budget authority to cover their cost