Defense Production Act Amendments of 1992
PL 102-558 (S.347), enacted 10/28/1992

106 STAT. 4198 
PUBLIC LAW 102-558—OCT. 28, 1992 
Public Law 102-558 
102d Congress 
An Act 
Oct. 28, 1992 
[S. 347] 
Defense 
Production Act 
Amendments 
of 1992. 
50 u s e app. 
2061 note. 
To amend the Defense Production Act of 1950 to revitalize the defense industrial 
base of the United States, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "Defense Pro-
duction Act Amendments of 1992". 
(b) TABLE OF CONTENTS.— 
Section 1. Short title; table of contents. 
TITLE I—AMENDMENTS TO THE DEFENSE PRODUCTION ACT OF 1950 
PART A—DECLARATION OF POLICY 
Sec. 101. Declaration of policy. 
PART B—AMENDMENTS TO TITLE I OF THE DEFENSE PRODUCTION ACT 
Sec. 111. Strengthening of domestic capability and assistance for smedl businesses. 
Sec. 112. Limitation on actions without congressional authorization. 
PART C—AMENDMENTS TO TITLE III OF THE DEFENSE PRODUCTION ACT 
Sec. 121. Expanding the reach of existing authorities under title III. 
Sec. 122. Defense Production Act Fund. 
Sec. 123. Declaration of offset pohcy. 
Sec. 124. Annual report on impact of offsets. 
Sec. 125. Civil-military integration. 
Sec. 126. Testing, qualification, and use of industrial resources developed under 
title III projects. 
PART D—AMENDMENTS TO TITLE VTI OF THE DEFENSE PRODUCTION ACT 
Sec. 131. Small business. 
Sec. 132. Definitions. 
Sec. 133. Appointment of personnel. 
Sec. 134. Regulations and orders. 
Sec. 135. Information on the defense industrial base. 
Sec. 136. Public participation in rulemaking. 
PART E—TECHNICAL AMENDMENTS 
Sec. 141. Technical correction. 
Sec. 142. Investigations; records; reports; subpoenas. 
Sec. 143. Employment of persoiinel. 
Sec. 144. Technical correction. 
PART F—REPEALERS AND CONFORMING AMENDMENTS 
Sec. 151. Synthetic fuel action. 
Sec. 152. Sepeal of interest payment provisions. 
Sec. 153. Joint Committee on Defense Production. 
Sec. 154. Persons disqualified for employment. 
Sec. 155. Feasibility study on uniform cost accounting standards; report submitted. 
Sec. 156. National commission on supplies and shortages. 
PART G—REAUTHORIZATION OF SELECTED PROVISIONS 
Sec. 161. Authorization of appropriations. 
Sec. 162. Extension of program. 
Sec. 163. Presidential study. 
TITLE II—ADDITIONAL PROVISIONS TO IMPROVE INDUSTRIAL 
PREPAREDNESS 
Sec. 201. Discouraging unfair trade practices. 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4199 
Sec. 202. Fraudulent use of "Made in America" labels. 
Sec. 203. Evaluation of domestic defense industrial base policy. 
TITLE III—MISCELLANEOUS PROVISIONS 
Sec. 301. Energy seciirity. 
Sec. 302. Domestic retail deposit-taking by foreign banks. 
Sec. 303. Deposit insurance assessment rates for lifeline account deposits. 
Sec. 304. Effective date. 
Sec. 305. Provisional repeal of duplicative provisions. 
TITLE I—AMENDMENTS TO THE 
DEFENSE PRODUCTION ACT OF 1950 
PART A—DECLARATION OF POLICY 
SEC. 101. DECLARATION OF POLICY. 
Section 2 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2062) is amended to read as follows: 
"SEC. 2. DECLARATION OF POLICY. 
"(a) FINDINGS.—The Congress finds t h a t -
'll) the vitality of the industrial and technology base of 
the United States is a foundation of national security that 
provides the industrial and technological capabilities employed 
to meet national defense requirements, in peacetime and in 
time of national emergency; 
"(2) in peacetime, the heeilth of the industrial and techno-
logical base contributes to the technological superiority of 
United States defense equipment, which is a cornerstone of 
the national security strategy, and the efficiency with which 
defense equipment is developed and produced; 
"(3) in times of crisis, a healthy industrial base will be 
able to effectively provide the graduated response needed to 
effectively meet the demands of the emergency; 
"(4) in view of continuing international problems, the 
Nation's demonstrated reliance on imports of materials and 
components, and the need for measures to reduce defense pro-
duction lead times and bottlenecks, and in order to provide 
for the national defense and national security, the United States 
defense mobilization preparedness effort continues to require 
the development of— 
"(A) preparedness programs; 
"(B) domestic defense industrial base improvement 
measures; 
"(C) provisions for a graduated response to any 
threatening international or military situation; 
"(D) the expansion of domestic productive capacity 
beyond the levels needed to meet the civilian demand; 
and 
"(E) some diversion of certain materials and faciUties 
from civilian use to military and related purposes. 
"(5) to meet the requirements referred to in this subsection, 
this Act affords to the President an array of authorities to 
shape defense preparedness programs and to take appropriate 
steps to maintain and enhance the defense industrial and 
technological base; 
"(6) the activities referred to in this subsection are needed * 
in order to— 
106 STAT. 4200 
PUBLIC LAW 102-558—OCT. 28, 1992 
"(A) improve domestic defense industrial base efficiency 
and responsiveness; 
"(B) reduce the time required for industrial mobiliza-
tion in the event of an attack on the United States; or 
"(C) to respond to actions occurring outside of the 
. United States which could result in the termination or 
reduction of the availability of strategic and critical mate-
rials, including energy, and which could adversely affect 
the national defense preparedness of the United States; 
"(7) in order to ensure national defense preparedness, which 
is essential to national security, it is necessary and appropriate 
to assure the availabihty of domestic energy supplies for 
national defense needs; 
"(8) to further assure the adequate maintenance of the 
defense industrial base, to the maximum extent possible, such 
supphes should be augmented through reliance on renewable 
fuels, including solar, geothermal, and wind energy and ethanol 
and its derivatives, and on energy conservation measures; 
"(9) the domestic defense industrigd base is a component 
part of the core industrial capacity of the Nation; 
"(10) much of the industrial capacity which is relied upon 
by the Federal Government for military production and otner 
defense-related purposes is deeply and directlv influenced by— 
"(A) the overall competitiveness of the United States 
industrial economy; and 
"(B) the ability of United States industry, in general, 
to produce internationally competitive products and operate 
profitably while maintaining adequate research and devel-
opment to preserve that competitive edge in the future, 
with respect to military and civiHan production; 
"(11) the domestic defense industrial base is developing 
a growing dependency on foreign sources for critical components 
and materials used in mani:facturing and assembling m£gor 
weapons systems for the national defense; 
(12) such dependence is threatening the capability of many 
critical industries to respond rapidly to defense production 
needs in the event of war or other hostilities or diplomatic 
confrontation; and 
"(13) the inabiUty of United States industry, especially 
smaller subcontractors and suppliers, to provide vital parts 
and components and other materials would impair our ability 
to sustain United States Armed Forces in combat for longer 
than a short period. 
"(b) STATEMENT OF POLICY.—It is the policy of the United 
States that— 
"(1) in order to ensure productive capacity in the event 
of an attack on the United States, the United States should 
encourage the geographic dispersal of industrial facilities in 
the United States to discourage the concentration of such pro-
ductive facilities within limited geographic areas which are 
vulnerable to attack by an enemy of the United Stetes; 
"(2) to ensure that essential mobilization requiremente are 
met, consideration should also be given to stockpiling strategic 
materials to the extent that aucn stockpiling is economical 
and feasible; 
"(3) in the construction of aiw Government-owned indus-
trial facihty, in the rendition of any Government financial 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4201 
assistance for the construction, expansion, or improvement of 
any industrial facility, and in the production of goods and 
services, under this or any other Act, each department and 
agency of the executive branch should apply, under the 
coordination of the Federal Emergency Management Agency, 
when practicable and consistent with existing law and the 
desirability for msdntaining a sound economy, the principle 
of the geographic dispersal of such facilities in the interest 
of nationgQ defense, except that nothing in this paragraph shall 
preclude the use of existing industrial faciUties; 
"(4) to ensure the adequacy of productive capacity and 
supply, executive agencies and departments responsible for 
defense acquisition should continuously assess the capability 
of the domestic defense industrial base to satisfy peacetime 
requirements as well as increased mobilization production 
requirements, specifically evaluating the availability of ade-
quate production sources, including subcontractors and suppli-
ers, materials, skilled labor, and professional and technical 
personnel; 
"(5) every effort should be made to foster cooperation 
between the defense and commercial sectors for research and 
development and for acquisition of materials, components, £ind 
equipment; and 
"(6) plans and programs to carry out this section shall 
be undertaken with due consideration for promoting efficiency 
and competition.". 
PART B—AMENDMENTS TO TITLE I OF THE 
DEFENSE PRODUCTION ACT 
SEC. 111. STRENGTHENING OF DOMESTIC CAPABILITY AND ASSIST-
ANCE FOR SMALL BUSINESSES. 
Title I of the Defense Production Act of 1950 (50 U.S.C. App. 
2071, et seq.) is amended by adding at the end the following 
new sections: 
"SEC. 107. STRENGTHENING DOMESTIC CAPABILITY. 
50 USC app. 
2077 
"(a) IN GENERAL.—^Utilizing the authority of title III of this 
Act or any other provision of law, the President may provide appro-
priate incentives to develop, maintain, modernize, and expand the 
productive capacities of domestic sources for critical components, 
critical technology items, and industrial resources essential for the 
execution of the national security strategy of the United States. 
"(b) CRITICAL COMPONENTS AND CRITICAL TECHNOLOGY ITEMS.— 
"(1) IDENTIFICATION.— 
"(A) IN GENERAL.—The President, acting through the President. 
Secretary of Defense, shall identify critical components and 
critical technology items for each item on the Critical Items 
List of the Commanders-in-Chief of the Unified and Speci-
fied Commands and other items within the inventory of 
weapon systems and defense equipment. 
"(B) DEFINITION.—Any component identified as critical 
by a National Security Assessment conducted pursuant 
to section 113(i) of title 10, United States Code, or by 
a Presidential determination as a result of a petition filed 
under section 232 of the Trade Expansion Act of 1962 
shall be designated as a critical component for purposes 
106 STAT. 4202 
PUBLIC LAW 102-558—OCT. 28, 1992 
of this Act, unless the President determines that the des-
ignation is unwarranted. 
President. 
"(2) MAINTENANCE OP RELIABLE SOURCES OF SUPPLY.—The 
President shall take appropriate actions to assure that critical 
components or critical technology items are available from reli-
able sources when needed to meet defense requirements during 
peacetime, graduated mobilization, and national emergency. 
"(3) APPROPRIATE ACTION.—For purposes of this subsection, 
appropriate action may include— 
"(A) restricting contract soHcitations to reliable sources; 
"(B) restricting contract solicitations to domestic 
sources pursuant to— 
"(i) section 2304(b)(1)(B) or section 2304(c)(3) of 
title 10, United States Code; 
"(ii) section 303(b)(1)(B) or section 303(c)(3) of the 
Federal Property and Administrative Services Act of 
1949;or 
"(iii) other statutory authority; 
"(C) stockpiling critical components; and 
"(D) developing substitutes for a critical component 
or a critical technology item. 
50USCapp. 
"SEC. 108. MODERNIZATION OF SMALL BUSINESS SUPPLIERS. 
2078 
President. 
"^^^ ^^ GENERAL.—In providing any assistance under this Act, 
the President shall accord a strong preference for small business 
concerns which are subcontractors or suppliers, and, to the maxi-
mum extent practicable, to such small business concerns located 
in areas of high unemployment or areas that have demonstrated 
a continuing pattern of economic decline, as identified by the Sec-
retary of Labor. 
"(b) MODERNIZATION OF EQUIPMENT.— 
"(1) IN GENERAL.—Funds authorized under title III may 
be used to guarantee the purchase or lease of advance manufac-
turing equipment, and any relsited services with respect to 
any such equipment for purposes of this Act. 
"(2) SMALL BUSINESS SUPPLIERS.—In considering proposals 
for title III projects under paragraph (1), the President shall 
provide a strong preference for proposals submitted by a small 
business supplier or subcontractor whose proposal— 
"(A) has the support of the department or agency which 
will provide the guarantee; 
(B) reflects that the small business concern has made 
arrangements to obtain qualified outside assistance to sup-
port the effective utilization of the advginced manufacturing 
equipment being proposed for installation; and 
"(C) meets the requirements of section 301, 302, or 
303.". 
SEC. 112. LIMITATION 
ON ACTIONS WITHOUT CONGRESSIONAL 
AUTHORIZATION. 
Section 104 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2074) is amended to read as follows: 
"SEC. 104. LIMITATION ON ACTIONS WITHOUT CONGRESSIONAL 
AUTHORIZATION. 
"(a) WAGE OR PRICE CONTROLS.—NO provision of this Act shall 
be interpreted as providing for the imposition of wage or price 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4203 
controls without the prior authorization of such action by a joint 
resolution of Congress. 
"(b) CHEMICAL OR BIOLOGICAL WEAPONS.—NO provision of title 
I of this Act shall be exercised or interpreted to require action 
or compliance by any private person to assist in any way in the 
production of or other involvement in chemical or biological warfare 
capabilities, unless authorized by the President (or the President's 
designee who is serving in a position at level I of the Executive 
Schedule in accordance with section 5312 of title 5, United States 
Code) without further redelegation.". 
PART C—AMENDMENTS TO TITLE III OF THE 
DEFENSE PRODUCTION ACT 
SEC. 121. EXPANDING T
E
D
B REACH OF EXISTING AUTHORITIES UNDER 
TITLE m. 
(a) GUARANTEE AUTHORITY.—Section 301 of the Defense Produc-
tion Act of 1950 (50 U.S.C. App. 2091) is amended— 
(1) in subsection (a)(1), by striking "to expedite production 
and deliveries or services under (jovemment contracts for the 
procurement of materials or the performance of services for 
the national defense" and inserting "to expedite or expand 
production and deliveries or services under (Jovemment con-
tracts for the procurement of industrial resources or critical 
technology items essential to the national defense"; 
(2) by Eunending subsection (a)(3)(A) to read as follows: 
"(A) the guaranteed contract or activity is for industrial 
resources or a critical technology item which is essential to 
the national defense;"; 
(3) in subsection (a)(3)(B)— 
(A) by striking "Without" and inserting "without"; and 
(B) by striking "the capability for the needed material 
or service" and inserting "the needed industrial resources 
or critical technology item"; 
(4) by amending subsection (a)(3)(D) to read as follows: 
"(D) the combination of the United States national 
defense demand and foreseeable nondefense demand is not 
less than the output of domestic industrial capability, as 
determined by the President, including the output to be 
established through the guarsuitee."; 
(5) in subsection (e)(1)(A), by striking "Except during peri-
ods of national emergency declared by the Congress or the 
President" and inserting "Except as provided in subparagraph 
(D)"; 
(6) in subsection (e)(1)(C), by striking "$25,000,000" and 
inserting "$50,000,000"; and 
(7) subsection (e)(1), by adding at the end the following 
new subparagraph: 
"(D) The requirements of subparagraphs (A), (B), and 
(C) may be waived— 
"(i) during periods of national emergency declared 
by the Congress or the President; or 
"(ii) upon a determination by the President, on 
a nondelegable basis, that a specific guarantee is nec-
essary to avert an industrial resource or critical tech-
nology shortfall that would severely impair national 
defense capability.". 
106 STAT. 4204 
PUBLIC LAW 102-558—OCT. 28, 1992 
(b) 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 procurement of 
materials or the performance of services for the national 
defense" and inserting "for the procurement of industrial 
resources or a critical technology item for the national defense"; 
(2) by amending subsection (b)(2)(D) to read as follows: 
"(D) the combination of the United States national 
defense demand and foreseeable nondefense demand is not 
less than the output of domestic industrial capabiUty, as 
determined by the President, including the output to be 
established through the loan."; 
(3) in subsection (c)(1), by striking "No such loan may 
be made imder this section, except during periods of national 
emergency declared by the Congress or the President" and 
inserting "Except as provided in paragraph (4), no loans may 
be made under this section"; 
(4) in subsection (c)(3), by striking "$25,000,000" and insert-
ing "$50,000,000"; or 
(5) in subsection (c), by adding at the end the following 
new paragraph: 
"(4) The requirements of paragraphs (1), (2), and (3) may 
be waived— 
"(A) during periods of national emergency declared by 
the Congress or the President; £ind 
"(B) upon a determination by the President, on a 
nondelegable basis, that a specific guarantee is necessary 
to avert an industrial resource or critical technology short-
fall that would severely impair national defense capabil-
ity.". 
(c) PURCHASES AND PURCHASE COMMITMENTS.— 
(1) IN GENERAL.—Section 303(a) of the Defense Production 
Act of 1950 (50 U.S.C. App. 2093(a)) is amended to read as 
follows: 
"(a) PRESIDENTIAL PROVISIONS.— 
"(1) IN GENERAL.—^To assist in carrying out the objectives 
of this Act, the President may make provision— 
"(A) for purchases of or commitments to purchase an 
industrial resource or a critical technology item, for Govern-
ment use or resale; and 
"(B) for the encouragement of exploration, develop-
ment, and mining of criticsd and strategic materials, and 
other materials. 
"(2) TREATMENT OF CERTAIN AGRICULTURAL COMMODITIES.— 
Purchases for resale under this subsection shall not include 
that part of the supply of an agricultural commodity which 
is domestically produced, except to the extent that such domes-
tically produced supply may be purchased for resale for indus-
trial use or stockpiling. 
"(3) TERMS OF SALES.—No commodity purchased imder this 
subsection shall be sold at less than— 
"(A) the established ceiling price for such commodity, 
except that minerals, meteds, and materials shall not be 
sold at less than the established ceiHng price, or the current 
domestic market price, whichever is lower; or 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4205 
"(B) if no ceiling price has been established, the higher 
of— 
"(i) the current domestic market price for such 
commodity; or 
"(ii) the minimum sale price established for agri-
cultural commodities owned or controlled by the Com-
modity Credit Corporation, as provided in section 407 
of the Agricultural Act of 1949. 
"(4) DELIVERY DATES.—No purchase or commitment to pur-
chase any imported agriculturgd commodity shall specify a deHv-
ery date which is more than 1 year after the expiration of 
this section. 
"(5) PRESIDENTIAX- DETERMINATIONS.—Except as provided 
in paragraph (7), the President may not execute a contract 
under this subsection unless the President determines that— 
"(A) the industrial resource or critical technology item 
is essential to the national defense; 
"(B) without Presidential action under the authority 
provided for in this section. United States industry cannot 
reasonably be expected to provide the capability for the 
needed industrial resource or critical technology item in 
a timely manner; 
"(C) purchases, purchase commitments, or other action 
pursuant to this section are the most cost-effective, expedi-
ent, and practical alternative method for meeting the need; 
and 
"(D) the combination of the United States national 
defense demand and foreseeable nondefense demand for 
the industrial resource or critical technology item is not 
less than the output of domestic industrial capability, as 
determined by the President, including the output to be 
established through the purchase, purchase commitment, 
or other action. 
"(6) IDENTIFICATION OF SHORTFALL.— 
"(A) IN GENERAL.—^Except as provided in paragraph 
(7), the President shall take no action under this section 
unless the industrial resource shortfall which such action 
is intended to correct has been identified in the Budget 
of the United States, or amendments thereto, submitted 
to the Congress and accompanied by a statement from 
the President demonstrating that the budget submission 
is in accordance with the provisions of paragraph (5). 
"(B) TIMING OF ACTION.—^Any such action may be taken 
only after 60 days have elapsed after such industrial 
resource shortfall has been identified pursuant to subpara-
graph (A). 
"(C) LIMITATION.—If the taking of any action or actions 
under this section to correct an industrial resource shortfall 
would cause the aggregate outstanding amount of all such 
actions for such industrial resource shortfall to exceed 
$50,000,000, any such action or actions may be taken only 
if specifically authorized by law. 
"(7) WAIVER.—^The requirements of paragraphs (1) through 
(6) may be waived— 
"(A) during periods of national emergency declared by 
the Congress or the President; or 
106 STAT. 4206 
PUBLIC LAW 102-558—OCT. 28, 1992 
"(B) upon a determination by the President, on a 
nondelegable basis, that a specific guarantee is necessary 
to avert an industrial resource or critical technology short-
fall that would severely impair national defense capabil-
ity.". 
(2) PURCHASE PERIODS.—Section 303(b) of the Defense Pro-
duction Act of 1950 (50 U.S.C. 2093(b)) is amended by striking 
"September 30, 1995" and inserting "a date that is not more 
than 10 years from the date such purchase, purchase commit-
ment, or sale was initially made". 
(d) DEVELOPING SUBSTITUTES.—Section 303(g) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2093(g)) is amended by 
inserting before the period the following: ", critical components, 
critical technology items, and other industrial resources". 
SEC. 122. DEFENSE PRODUCTION ACT FUND. 
Section 304 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2094) is amended to read as follows: 
"SEC. 304. DEFENSE PRODUCTION ACT FUND. 
"(a) ESTABLISHMENT OF FuND.^There is established in the 
Treasury of the United States a separate fund to be known as 
the Defense Production Act Fund (hereafter in this section referred 
to as'the Fund'). 
"(b) MONEYS IN FUND.—There shall be credited to the Fund— 
"(1) all moneys appropriated for the Fund, as authorized 
by section 711(c); and 
"(2) all moneys received by the Fund on transactions 
entered into pursuant to section 303. 
"(c) USE OF FUND.—^The Fund shall be available to carry out 
the provisions and purposes of this title, subject to the limitations 
set forth in this Act and in appropriations Acts. 
"(d) DURATION OF FUND.—^Moneys in the Fimd shall remain 
available until expended. 
"(e) FUND BALANCE.—^The Fund balance at the close of each 
fiscal year shall not exceed $400,000,000, excluding any moneys 
appropriated to the Fund during that fiscal year or obligated funds. 
If, at the close of any fiscal year, the Fund balance exceeds 
$400,000,000, the amount in excess of $400,000,000 shall be paid 
into the general fund of the Treasury. 
President. 
"(f) FuND MANAGER.—^The President shall designate a Fund 
manager. The duties of the Fund manager shall include— 
"(1) determining the Uability of the Fund in accordance 
with subsection (g); 
"(2) ensuring the visibility and accountability of trans-
actions engaged in through the Fund; and 
Reports. 
"(3) reporting to the Congress each year regarding activities 
of the Fimd during the previous fiscal year. 
"(g) LIABILITIES AGAINST FUND.—^When any agreement entered 
into pursuant to this title after December 31, 1991, imposes any 
contingent liability upon the United States, such liability shall 
be considered £in obligation against the Fund.". 
50 use app. 
SEC. 123. DECLARATION OF OFFSET POLICY. 
(a) IN GENERAL.—Recognizing that certain offsets for mihtary 
exports are economically inefficient and market distorting, and 
mindful of the need to minimize the adverse effects of offsets 
in military exports while ensuring that the ability of United States 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4207 
firms to compete for military export sales is not undermined, it 
is the policy of the Congress that— 
(1) no agency of the United States Government shall 
encourage, enter directly into, or commit United States firms 
to any offset arrangement in connection with the sale of defense 
goods or services to foreign governments; 
(2) United States Government funds shall not be used 
to finance offsets in security assistance transactions, except 
in accordance with policies and procedures that were in exist-
ence on March 1, 1992; 
(3) nothing in this section shall prevent agencies of the 
United States Government from fulfilling obligations incurred 
through international agreements entered into before March 
1, 1992; and 
(4) the decision whether to engage in offsets, and the 
responsibility for negotiating and implementing offset arrange-
ments, reside with the companies involved. 
(b) PRESIDENTIAL APPROVAL OF EXCEPTIONS.—It is the policy 
of the Congress that the President may approve an exception to 
the policy stated in subsection (a) after receiving the rec-
ommendation of the National Security Council. 
(c) CONSULTATION.—It is the policy of the Congress that the President. 
President shall designate the Secretary of Defense to lead, in 
coordination with the Secretary of State, an interagency team to 
consult with foreign nations on limiting the adverse effects of offsets 
in defense procurement. The President shall transmit an annual Reports, 
report on the results of these consultations to the Congress as 
part of the report required under section 309(a) of the Defense 
Production Act of 1950. 
SEC. 
1
2
4
. 
ANNUAL 
REPORT 
ON 
IMPACT 
OF 
OFFSETS. 
Section 309 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2099) is amended— 
(1) in subsection (a)— 
(A) by striking "(a) REPORT REQUIRED.—Not later" and 
inserting: "(a) ANNUAL REPORT ON IMPACT OF OFFSETS.— 
"(1) REPORT REQUIRED.—Not later"; 
(B) by striking the second sentence; and 
(C) by adding at the end the following new paragraph: 
"(2) DUTIES OF THE SECRETARY OF COMMERCE.—The Sec-
retary of Commerce (hereafter in this subsection referred to 
as 'the Secretary') shall— 
"(A) prepare the report required by paragraph (1); 
"(B) consult with the Secretary of Defense, the Sec-
retary of the Treasury, the Secretary of State, and the 
United States Trade Representative in connection with the 
^ 
preparation of such report; and 
"(C) function as the President's Executive Agent for 
canying out this section."; 
(2) by amending subsection (b) to read as follows: 
"(b) INTERAGENCY STUDIES AND RELATED DATA.— 
"(1) PURPOSE OF REPORT.—^Each report required under sub-
section (a) shall identify the cumulative effects of offset agree-
ments on— 
"(A) the full range of domestic defense productive 
capability (with special attention paid to the firms serving 
as lower-tier subcontractors or suppliers); and 
106 STAT. 4208 
PUBLIC LAW 102-558—OCT. 28, 1992 
"(B) the domestic defense technology base as a con-
sequence of the technology transfers associated with such 
offset agreements. 
"(2) USE OF DATA.—^Data developed or compiled by any 
agency while conducting any interagency study or other 
independent study or analysis shall be made available to the 
Secretary to faciUtate the execution of the Secretary's respon-
sibiUties with respect to trade offset and coiuitertrade poHcy 
development."; and 
(3) by adding at the end the following new subsections: 
"(c) NOTICE OF OFFSET AGREEMENTS.— 
"(1) IN GENERAL.—^If a United States firm enters into a 
contract for the sale of a weapon system or defense-related 
item to a foreign country or foreign firm and such contract 
is subject to an offset agreement exceeding $5,000,000 in value, 
such firm shall fiimish to the official designated in the regula-
tions promulgated pursuant to paragraph (2) information con-
cerning such sale. 
"(2) REGULATIONS.—^The information to be furnished under 
paragraph (1) shall be prescribed in regulations promulgated 
by the Secretary. Such regulations shall provide protection 
firom pubUc disclosure for such information, unless pubhc disclo-
sure is subsequently specifically authorized by the firm fiir-
nishing the information. 
"(d) CONTENTS OF REPORT.— 
"(1) IN GENERAL.—^Each report under subsection (a) shall 
include— 
"(A) a net assessment of the elements of the industrial 
base and technology base covered by the report; 
"(B) recommendations for appropriate remedial action 
under the authority of this Act, or other law or regulations; 
"(C) a summary of the findings and recommendations 
of any interagency studies conducted during the reporting 
period under subsection (b); 
"(D) a summary of offset arrangements concluded dur-
ing the reporting period for which information has been 
fiirnished pursuant to subsection (c); and 
"(E) a summary and analysis of any bilateral and mul-
tilateral negotiations relating to the use of offsets completed 
during the reporting period. 
"(2) ALTERNATIVE FINDINGS OR RECOMMENDATIONS.—Each 
report required under this section shall include any alternative 
findings or recommendations offered by any departmental Sec-
retary, agency head, or the United States TVade Representative 
to the Secretary. 
"(e) UTILIZATION OF ANNUAL REPORT IN NEGOTIATIONS.—The 
findings and recommendations of the reports required by subsection 
(a), and any interagency reports and analyses shall be considered 
by representatives of the United States during bilateral and multi-
lateral negotiations to minimize the adverse effects of ofifsets.". 
SEC. 125. CIVIL-BflLITARY INTEGRATION. 
Title III of the Defense Production Act of 1950 is amended 
by adding at the end the following new section: 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4209 
-SEC. 310. CIVIL-MILITARY INTEGRATION. 
50 USC app. 
2099a 
"An important purpose of this title is the creation of production 
capacity that will remain economically viable after guarantees and 
other assistance provided under this title have expired.". 
SEC. 126. TESTING, 
QUALIFICATION, 
AND USE 
OF 
INDUSTRIAL 
RESOURCES DEVELOPED UNDER TITLE m PROJECTS. 
(a) IN GENERAL.—Not later than 270 days after the date of 
enactment of this Act, the single govemmentwide Federal Acquisi-
tion Regulation, referred to in section 25(c)(1) of the OflRce of 
Federal Procurement Policy Act (41 U.S.C. 421(c)(1)) shall be 
amended to provide for testing and qualification (pursuant to sub-
section (b)) and use (pursuant to subsection (c)) of the industrial 
resources manufactured or developed with assistance provided 
under section 301, 302, or 303 of the Defense Production Act of 
1950. 
(b) TESTING AND QUALIFICATION.—Any testing and qualification 
required for the use or incorporation of the industrial resource 
developed or manufactured with such assistance shall be under-
taken upon the request of the title III project contractor and the 
costs of such testing and qualification shall be borne by the depart-
ment or agency imposing the testing and qualification requirement. 
(c) USE.—^Upon qualification, the industrial resource shall be 
eligible for use with respect to the development and manufacture 
of a major system or an item of supply being undertaken by an 
executive agency. 
(d) DEFINITIONS.—For purposes of this section— 
(1) the term "industrial resources" has the same meaning 
as in section 702(11) of the Defense Production Act of 1950; 
(2) the term "item of supply" has the same meaning as 
in section 4(10) of the Office of Federal Procurement Policy 
Act; 
(3) the term "major system" has the same meaning as 
in section 4(9) of the Office of Federal Procurement Policy 
Act; and 
(4) the term "title III project contractor" means a contractor 
who has received assistance for the development or manufac-
ture of an industrial resource under section 301, 302, or 303 
of the Defense Production Act of 1950 (50 U.S.C. App. 2091-
2093). 
PART D—AMENDMENTS TO TITLE VII OF THE 
DEFENSE PRODUCTION ACT 
SEC. 13L SMALL BUSINESS. 
Section 701 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2151) is amended to read as follows: 
"SEC. 701. SMALL BUSINESS. 
"(a) PARTICIPATION.—Small business concerns shall be given 
the maximum practicable opportunity to participate as contractors, 
and subcontractors at various tiers, in all programs to maintain 
and strengthen the Nation's industrial base and technology base 
undertaken pursuant to this Act. 
"(b) ADMINISTRATION OF ACT.—In administering the programs, 
implementing regulations, policies, and procedures under this Act, 
106 STAT. 4210 
PUBLIC LAW 102-558—OCT. 28, 1992 
requests, applications, or appeals from small business concerns 
shall, to the maximum extent practicable, be expeditiously handled. 
"(c) ADVISORY COMMITTEE PARTICIPATION.—Representatives of 
small business concerns shall be afforded the maximum opportunity 
to participate in such advisory committees as may be estabUshed 
pursuant to this Act, 
"(d) INFORMATION.—Information about this Act and activities 
undertaken in accordance with this Act shall be made available 
to small business concerns. 
"(e) ALLOCATIONS UNDER SECTION lOl.^Whenever the Presi-
dent makes a determination to exercise any authority to allocate 
any material pursuant to section 101, small business concerns shall 
be accorded, to the extent practicable, a fair share of such material, 
in proportion to the share received by such business concerns under 
normal conditions, giving such special consideration as may be 
possible to emerging small business concerns.". 
SEC. 132. DEFINITIONS. 
Section 702 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2152) is amended to read as follows: 
-SEC. 702. DEFINITIONS. 
"For purposes of this Act, the following definitions shall apply: 
"(1) CRITICAL COMPONENT.—The term 'critical component' 
includes such components, subsystems, systems, and related 
special tooling and test equipment essential to the production, 
repair, maintenance, or operation of weapon systems or other 
items of military equipment identified by the Secretary of 
Defense as being essential to the execution of the national 
security strategy of the United States. Components identified 
as critical by a National Security Assessment conducted pursu-
ant to section 113(i) of title 10, United States Code, or by 
a Presidential determination as a result of a petition filed 
under section 232 of the Trade Expansion Act of 1962 shall 
be designated as criticsd components for purposes of this Act, 
unless the President determines that the designation is 
unwarranted. 
"(2) CRITICAL INDUSTRY FOR NATIONAL SECURITY.—^The term 
'critical industry for national security* mesins any industry (or 
industry sector) identified pursuant to section 2503(6) of title 
10, United States Code, and such other industries or industry 
sectors as may be designated by the President as essential 
to provide industrial resources required for the execution of 
the national security strategy of the United States. 
"(3) CRITICAL TECHNOLOGY.—The term 'critical technology' 
includes any technology that is included in 1 or more of the 
glans submitted pursuant to section 6681 of title 42, United 
tates Code, or section 2508 of title 10, United States Code 
(unless subsequently deleted), or such other emerging or dual 
use technology as may be designated by the President. 
"(4) CRITICAL TECHNOLOGY ITEM.—-The term 'critical tech-
_^ 
nology item' means materials directly emplojdng, derived from, 
or utilizing a critical technology. 
"(5) DEFENSE CONTRACTOR.—^The term 'defense contractor" 
means any person who enters into a contract with the United 
States— 
"(A) to furnish materials, industrial resources, or a 
critical technology for the national defense; or 
. . 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4211 
"(B) to perform services for the national defense. 
"(6) DOMESTIC 
DEFENSE 
INDUSTRIAL BASE.—^The term 
'domestic defense industrial base' means domestic sources 
which are providing, or which would be reasonably expected 
to provide, materials or services to meet national defense 
requirements 
during 
peacetime, 
graduated 
mobilization, 
national emergency, or war. 
"(7) DOMESTIC SOURCE.—The term 'domestic source' means 
a business concern— 
"(A) that performs in the United States or Canada 
substantially all of the research and development, engineer-
ing, msuiufacturing, and production activities required of 
such business concern imder a contract with the United 
States relating to a critical component or a critical tech-
nology item; and 
"(B) that procures from business concerns described 
in subparagraph (A) substantially all of any components 
and assemblies required under a contract with the United 
States relating to a critical component or critical technology 
item. 
"(8) ESSENTIAL 
WEAPON SYSTEM.—^The term 'essential 
weapon system' means a major weapon system and other items 
of military equipment identified by the Secretary of Defense 
as being essential to the execution of the national security 
strategy of the United States. 
"(9) FACILITIES.—^The term 'facilities' includes all types of 
buildings, structures, or other improvements to real property 
(but excluding farms, churches or other places of worship, and 
private dwelUng houses), and services relating to the use of 
any such building, structure, or other improvement. 
"(10) FOREIGN SOURCE.—The term 'foreign source' means 
a business entity other than a 'domestic source'. 
"(11) 
INDUSTRIAL 
RESOURCES.—The 
term 
'industrial 
resources' means materials, services, processes, or manufactur-
ing equipment (including the processes, technologies, and 
ancillary services for the use of such equipment) needed to 
establish or maintain an efficient £Uid modem national defense 
industrial capacity. 
"(12) MATERIALS.—^The term'materials'includes— 
"(A) £uiy raw materials (including minerals, metals, 
and advanced processed materials), commodities, articles, 
components (including critical components), products, and 
items of supply; and 
"(B) any technical information or services ancillary 
to the use of any such materials, commodities, articles, 
components, products, or items. 
"(13) NATIONAL DEFENSE.—The term 'national defense' 
means programs for military and energy production or construc-
tion, military assistance to any foreign nation, stockpiling, 
space, and any directly related activity. 
"(14) PERSON.—^The term 'person' includes an individual, 
corporation, partnership, association, or any other organized 
group of persons, or legal successor or representative thereof, 
or any State or local government or agency thereof. 
"(15) SERVICES.—The term 'services' includes any effort 
that is needed for or incidental to— 
106 STAT. 4212 
PUBLIC LAW 102-558—OCT. 28, 1992 
"(A) the development, production, processing, dis-
tribution, delivery, or use of an industrial resource or a 
critical technology item; or 
"(B) the construction of facilities. 
"(16) SMALL BUSINESS CONCERN.—The term 'small business 
concern' means a business concern that meets the requirements 
of section 3(a) of the Small Business Act and the regulations 
promulgated pursuant to that section, and includes such busi-
ness concerns owned and controlled by socially and economically 
disadvantaged individuals or by women. 
"(17) SMALL BUSINESS CONCERN OWNED AND CONTROLLED 
BY 
SOCIALLY AND ECONOMICALLY 
DISADVANTAGED 
INDIVID-
UALS.—^The term 'small business concern owned and controlled 
by socially and economically disadvantaged individuals' has 
the same meaning as in section 8(d)(3)(C) of the Small Business 
Act.". 
SEC. 133. APPOINTMENT OF PERSONNEL. 
Section 703 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2153) is amended to read as follows: 
-SEC. 703. CIVILIAN PERSONNEL. 
"Any officer or agency head may— 
"(1) appoint civilian personnel without regard to section 
5331(b) of title 5, United States Code, and without regard 
to the provisions of title 5, United States Code, governing 
appointments in the competitive service; and 
"(2) fix the rate of basic pay for such personnel without 
regard to the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating to classifica-
tion and General Schedule pay rates, 
except that no individual so appointed may receive pay in excess 
of the annual rate of basic pay payable for GS-18 of the General 
Schedule, as the President deems appropriate to carry out this 
Act.". 
SEC. 134. REGULATIONS AND ORDERS. 
Section 704 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2154) is amended to read as follows: 
"SEC. 704. REGULATIONS AND ORDERS. 
"(a) IN GENERAL.—Subject to section 709 and subsection (b), 
the President may prescribe such regulations and issue such orders 
as the President may determine to be appropriate to carry out 
this Act. 
"(b) PROCUREMENT REGULATIONS.—^Any procurement regula-
tion, procedure, or form issued pursuant to subsection (a) shall 
be issued pursuant to section 25 of the Office of Federal Procure-
ment Policy Act, and shall conform to any govemmentwide procure-
ment policy or regulation issued pursuant to section 6 or 25 of 
that Act.". 
SEC 135. INFORMATION ON THE DEFENSE INDUSTRIAL BASE. 
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: 
50 use app. 
"SEC. 722. DEFENSE INDUSTRIAL BASE INFORMATION SYSTEM. 
2171 
President. 
"^^^ ESTABLISHMENT REQUIRED.— 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4213 
**(1) IN GENERAL.—^The President, acting through the Sec-
retary of Defense and the heads of such other Federal agencies 
as the President may determine to be appropriate, shall provide 
for the establishment of an information system on the domestic 
defense industrial base which— 
"(A) meets the requirements of this section; and 
"(B) includes a systematic continuous procedure, to 
collect and analyze information necessary to evaluate— 
"(i) the adequacy of domestic industrial capacity 
to furnish critical components and critical technology 
items essential to the national security of the United 
States; 
"(ii) dependence on foreign sources for critical com-
ponents and critical technology items essential to 
defense production; £uid 
"(iii) the reliability of foreign sources for critical 
components and critical technology items. 
"(2) INCORPORATION OF DINET.—The Defense Information 
Network (or DINET), as established and maintained by the 
Secretary of Defense on the date of enactment of the Defense 
Production Act Amendments of 1992, shall be incorporated 
into the system established pursuant to paragraph (1). 
"(3) USE OF INFORMATION.—Information collected and ana-
lyzed under the procedure estabUshed pursuant to paragraph 
(1) shall constitute a basis for making any determination to 
exercise any authority under this Act and a procedure for 
using such information shall be integrated into the decision-
meiking process with regard to the exercise of any such author-
ity. 
"(b) SOURCES OF INFORMATION.— 
"(1) FOREIGN DEPENDENCE.— 
"(A) SCOPE OF INFORMATION REVIEW.—^The procedure 
established to meet the requirement of subsection 
(a)(l)(B)(ii) shall address defense production with respect 
to the operations of prime contractors and at least the 
first 2 tiers of subcontractors, or at lower tiers if a critical 
„. 
^ 
component is identified at such lower tier. 
"(B) USE OF EXISTING DATA COLLECTION AND REVIEW 
CAPABILITIES.—^To the extent feasible and appropriate, the 
President shall build upon existing methods of data collec-
tion and analysis and shall integrate information available 
from intelligence agencies with respect to industried and 
technological conditions in foreign countries. 
"(C) INITIAL EMPHASIS ON PRIORITY LISTS.—In estabUsh-
ing the procedure referred to in subparagraph (A), the 
Secretary may place initial emphasis on the production 
of critical components and critical technology items. 
"(2) PRODUCTION BASE ANALYSIS.— 
"(A) COMPREHENSIVE REVIEW.—The analysis of the pro-
duction base for any major system acquisition included 
in the information system maintsdned pursuant to sub-
section (a) shall, in addition to any information and analy-
ses the President may require— 
"(i) include a review of all subcontractors and sup-
pHers, beginning with any raw material, special alloy, 
or composite material involved in the production of 
a completed system; 
106 STAT. 4214 
PUBLIC LAW 102-558—OCT. 28, 1992 
"(ii) identify each contractor and subcontractor (or 
supplier) at each level of production for such major 
system acquisition which represents a potential for 
dela3dng or preventing the system's production and 
acquisition, including the identity of each contractor 
or subcontractor whose contract quaHfies as a foreign 
source or sole source contract and any supplier which 
is a foreign source or sole source for any item required 
in the production, including critical components; and 
"(iii) include information to permit appropriate 
management of accelerated or surge production, 
"(B) INITIAL REQUIREMENT FOR STUDY OF PRODUCTION 
BASES 
FOR 
NOT 
MORE THAN 6 
MAJOR WEAPON 
SYSTEMS.— 
In establishing the information system under subsection 
(a), the President, acting through the Secretary of Defense, 
shall require an analysis of the production base for not 
more than 2 weapons of each military dep£u*tment which 
;: 
are major systems (as defined in section 2302(5) of title 
10, United States Code). Each such analysis shall identify 
the critical components of each system. 
"(3) CONSULTATION REGARDING THE CENSUS OF MANUFAC-
TURERS.— 
"(A) IN GENERAL.—^The Secretary of Commerce, acting 
through the Bureau of the Census, shall consult with the 
Secretary of Defense and the Director of the Federal Emer-
gency Management Agency to improve the usefulness of 
information derived from the Census of Manufacturers in 
carrying out this section. 
"(B) 
ISSUES TO 
BE ADDRESSED.—^The consultation 
required under subparagraph (A) shall address improve-
ments in the level of detail, timeliness, and availabiUty 
of input and output analyses derived from the Census 
of Mginufacturers necessary to carry out this section. 
"(c) STRATEGIC PLAN FOR DEVELOPING COMPREHENSIVE SYS-
TEM.— 
Reports. 
"(1) PLAN REQUIRED.—^Not later than December 31, 1993, 
the President shall provide for the establishment of and report 
to the Congress on a strategic plan for developing a cost-
effective, comprehensive information system capable of identify-
ing on a timely, ongoing basis vulnerability in critical compo-
nents and critical technology items. 
"(2) ASSESSMENT OF CERTAIN PROCEDURES.—In estabhshing 
the plan pursuant to paragraph (1), the President shall assess 
the performance and cost-effectiveness of procedures imple-
mented under subsection (b), and shall seek to build upon 
such procedures, as appropriate. 
"(d) CAPABILITIES OF SYSTEM.— 
"(1) IN GENERAL.—In connection with the establishment 
of the information system under subsection (a), the President 
shall direct the Secretary of Defense, the Secretary of Com-
merce, and the heads of such other Federal agencies as the 
President may determine to be appropriate— 
"(A) to consult with each other and provide such 
information, assistance, and cooperation as may be nec-
essary to establish and maintain the information system 
required by this section in a manner which allows the 
coordinated and efficient entry of information on the domes-
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4215 
tic defense industrial base into, and the withdrawal, subject 
to the protection of proprietary data, of information on 
the domestic defense industrial base from the system on 
an on-Une interactive basis by the Department of Defense; 
"(B) to assure access to the information on the system, 
as appropriate, for all participating Federal agencies, 
includmg each military depari^ment; 
"(C) to coordinate standards, definitions, and specifica-
tions for information on defense production, which is col-
lected by the Department of Defense and the mihtary 
departments so that such information can be used by any 
Federal agency or department, as the President determines 
to be appropriate; and 
**(D) to assure that the information in the system is 
updated, as appropriate, with the active assistance of the 
private sector. 
"(2) 
TASK FORCE ON MILITARY-CIVILIAN PARTICIPATION.— 
Upon the establishment of the information system under sub-
section (a), the President shall convene a task force consisting 
of the Secretary of Defense, the Secretary of Commerce, the 
Secretary of each military department, and the heads of such 
other Federal agencies and departments as the President may 
determine to be appropriate to establish guidelines and proce-
dures to ensure that all Federal agencies and departments 
which acquire information with respect to the domestic defense 
industrial base are fully participating in the system, unless 
the President determines that all appropriate Federal agencies 
and depari^ments, including each military department, are vol-
untarily providing information which is necessary for the sys-
tem to carry out the purposes of this Act and chapter 148 
of title 10, United States Code. 
"(e) REPORT ON SUBCONTRACTOR AND SUPPLIER BASE.— 
"(1) REPORT REQUIRED.—^The President shall issue a report 
(in accordance with paragraph (4) which includes— 
"(A) a Ust of critical components, technologies, and 
technology items for which there is found to be inadequate 
domestic industrial capacity or capability; and 
"(B) an assessment of those subsectors of the economy 
ofthe United States which— 
"(i) support production of any component, tech-
nology, or technology item hsted pursuant to subpara-
graph (A); or 
"(ii) have been identified as being critical to the 
development and production of components required 
for the production of weapons, weapon systems, and 
other military equipment essential to the national 
defense. 
"(2) MATTERS TO BE CONSIDERED.—^The assessment made 
under paragraph dXB) shall include consideration of— 
"(A) the capacity of domestic sources, especisdly com-
mercial firms, to fiilfill peacetime requirements and grad-
uated mobiUzation requirements for various items of supply 
and services; 
"(B) any trend relating to the capabilities of domestic 
sources to meet such peacetime and mobilization require-
ments; 
59-194 O—93 
19:QL3(Pt. 5) 
106 STAT. 4216 
PUBLIC LAW 102-558—OCT. 28, 1992 
Federal 
Register, 
publication. 
"(C) the extent to which the production or acquisition 
of various items of miUtary material is dependent on foreign 
sources; and 
"(D) any reason for the decline of the capabilities of 
selected sectors of the United States economy necessary 
to 
meet 
peacetime 
and mobilization 
requirements, 
including— 
"(i) stability of defense requirements; 
"(ii) acquisition policies; 
"(iii) vertical integration of various segments of 
the industrial base; 
"(iv) superiority of foreign technology and produc-
tion efficiencies; 
"(v) foreign government support of nondomestic 
. 
sources; and 
"(vi) offset arrangements. 
"(3) POLICY RECOMMENDATIONS.—^The report required by 
paragraph (1) may provide specific policy recommendations to 
correct deficiencies identified in the assessment, which would 
help to strengthen domestic sources. 
"(4) TIME FOR ISSUANCE.—^The report required by paragraph 
(1) shall be issued not later than July 1 of each even-numbered 
year which begins after 1992. 
"(5) 
RELEASE 
OF UNCLASSIFIED 
REPORT.—The 
report 
required by this subsection may be classified. An unclassified 
version of the report shall be made available to the public". 
SEC. 136. PUBUC PARTICIPATION IN RULEMAKING. 
(a) IN GENERAL.—Section 709 of the Defense Production Act 
of 1950 (50 U.S.C. 2159) is amended to read as follows: 
"SEC 709. PUBLIC PARTICIPATION IN RULEMAKING. 
"(a) EXEMPTION FROM THE ADMINISTRATIVE PROCEDURE ACT.— 
Any regulation issued under this Act shall not be subject to sections 
551 through 559 of title 5, United States Code. 
"(b) OPPORTUNITY FOR NOTICE AND COMMENT.— 
"(1) IN GENERAL.—Except as provided in subsection (c), 
any regulation issued under this Act shall be published in 
the Federal Register and opportunity for public comment shall 
be provided for not less than 30 days, consistent with the 
requirements of section 553(b) of title 5, United States Code. 
"(2) WAIVER FOR TEMPORARY PROVISIONS.—^The require-
ments of paragraph (1) may be waived, if— 
(A) the officer authorized to issue the regulation finds 
that urgent and compelUng circumstances make compliance 
with such requirements impracticable; 
"(B) the regulation is issued on a temporary basis; 
and 
"(C) the pubUcation of such temporary regulation is 
accompanied by the finding made under subparagraph (A) 
(and a brief statement of the reasons for such finding) 
and an opportunity for pubUc comment is provided for 
not less than 30 days before any regulation becomes final. 
"(3) CONSIDERATION OF PUBLIC COMMENTS.—^All comments 
received during the public comment period specified pursuant 
to paragraph (1) or (2) shall be consiaered and the publication 
of the fin£d regulation shall contain written responses to such 
comments. 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4217 
"(c) PUBLIC COMMENT ON PROCUREMENT REGULATIONS.—Any 
procurement policy, regulation, procedure, or form (including any 
amendment or modification of any such policy, regulation, proce-
dure, or form) issued under this Act shall be subject to section 
22 of the Office of Federal Procurement PoUcy Act.". 
(b) SCOPE OF APPLICATION.—Section 709 of the Defense Produc-
tion Act of 1950 (50 U.S.C. App. 2159), as amended by subsection 
(a) of this section, shall not apply to any regulation issued in 
proposed or final form on or before the date of enactment of this 
Act. 
50 u s e app. 
2159 note. 
PART E—TECHNICAL AMENDMENTS 
SEC. 141. TECHNICAL CORRECTION. 
Section 301(e)(2)(B) of the Defense Production Act of 1950 (50 
U.S.C. App. 2091(e)(2)(B)) is amended by striking "and to the Com-
mittees on Banking and Currency of the respective Houses" and 
inserting "and to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Banlang, Finance 
and Urban Affairs of the House of Representatives". 
SEC. 142. INVESTIGATIONS; RECORDS; REPORTS; SUBPOENAS. 
Section 705 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2155) is amended— 
(1) by striking "subpena" each place such term appears 
and inserting "subpoena"; 
(2) by redesignating subsections (c), (d), (e), and (f) as 
subsections (b), (c), (d), and (e), respectively; 
(3) in subsection (c) (as redesignated by paragraph (2)), 
by striking "$1,000" and inserting "$10,000"; 
(4) in subsection (d) (as redesignated by pgu'agraph (2)), 
by striking all after the first sentence; and 
(5) in subsection (e) (as redesignated by paragraph (2)), 
by striking "subpenaed" and inserting "subpoenaed". 
SEC. 143. EMPLOYMENT OF PERSONNEL. 
(a) NOTICE OF APPOINTMENT AND FINANCIAL DISCLOSURE FOR 
EMPLOYEES SERVING WITHOUT COMPENSATION.—Section 710(b)(6) 
of the Defense Production Act of 1950 (50 U.S.C. App. 2160(b)(6)) 
is amended to read as follows: 
"(6) NOTICE AND FINANCIAL DISCLOSURE REQUIREMENTS.— 
"(A) PUBLIC NOTICE OF APPOINTMENT.—The head of any 
dep£irtment or agency who appoints any individual under this 
subsection shall pubUsh a notice of such appointment in the 
Federal Register, including the name of the appointee, the 
employing department or agency, the title of the appointee's 
position, £uid the name of the appointee's private employer. 
"(B) FINANCIAL DISCLOSURE.—Any individual appointed 
under this subsection who is not required to file a financial 
disclosure report pursuant to section 101 of the Ethics in Gov-
ernment Act of 1978, shall file a confidential financial disclosure 
report pursuant to section 107 of that Act with the appointing 
department or agency.". 
(b) TECHNICAL AMENDMENTS.—Section 710(b) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2160(b)) is amended— 
(1) in paragraph (7)— 
Federal 
Register, 
publication. 
Reports. 
106 STAT. 4218 
PUBLIC LAW 102-558—OCT. 28, 1992 
(A) by striking "Chairman of the United States Civil 
Service Commission" and inserting "Director of the Office 
of Personnel Management"; 
(B) by striking "his findings" and inserting "his or 
her findings"; 
(C) by striking "and the Joint Committee on Defense 
Production"; and 
(D) by striking "he may" and inserting "he or she 
majr"; and 
(2) in paragraph (8), by striking "transportation and not 
to exceed $15 per diem in lieu of subsistence while away from 
their homes or regular places of business pursuant to such 
appointment" and inserting "reimbursement for travel, subsist-
ence, and other necessary expenses incurred by them in carry-
ing out the functions for which they were appointed in the 
same manner as persons employed intermittently in the Federal 
Grovemment are allowed expenses under section 5703 of title 
5, United States Code". 
SEC. 144. TECHNICAL CORRECTION. 
Section 711(a)(1) of the Defense Production Act of 1950 (50 
U.S.C. App. 2161(a)(1)) is amended by striking "Bureau of the 
Budget" and inserting "Office of Management and Budget". 
PART F—REPEALERS AND CONFORMING 
AMENDMENTS 
SEC. 151. SYNTHETIC FUEL ACTION. 
Section 307 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2097) is amended— 
(1) in subsection (b), by striking the second sentence; and 
(2) by striking subsection (c) and all that follows through 
the end of the section. 
SEC. 152. REPEAL OF INTEREST PAYMENT PROVISIONS. 
Section 711 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2161) is amended— 
(1) by striking subsection (b); and 
(2) in subsection (a)— 
(A) by striking "(a)(1) Except as provided in paragraph 
(2) and paragraph (4)" and inserting the following: 
"(a) AUTHORIZATION.— 
"(1) IN GENERAL.— Except as provided in subsection (c),"; 
(B) in paragraph (1), in the parenthetical, by striking 
"and for pajnnent of interest under subsection (b) of this 
section"; 
(C) by striking paragraph (2); 
(D) in paragraph (3), by striking "(3) There are" and 
inserting the following: 
"(b) SECTION 305 AUTHORIZATION.—";and 
(E) in paragraph (4)— 
(i) by striking "(4)(A) There are" and inserting 
the following: 
"(c) SECTION 303 AUTHORIZATION.—There are"; and 
(ii) by striking subparagraph (B). 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4219 
SEC. 153. JOINT COMMITTEE ON DEFENSE PRODUCTION. 
Section 712 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2162) is repealed. 
SEC. 154. PERSONS DISQUALIFIED FOR EMPLOYMENT. 
Section 716 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2165) is repealed. 
SEC. 155. FEASIBILITY 
STUDY ON UNIFORM 
COST 
ACCOUNTING 
STANDARDS; REPORT SUBMITTED. 
Section 718 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2167) is repealed. 
SEC. 156. NATIONAL COMMISSION ON SUPPLIES AND SHORTAGES. 
Section 720 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2169) is repealed. 
PART G—REAUTHORIZATION OF SELECTED 
PROVISIONS 
SEC. 161. AUTHORIZATION OF APPROPRIATIONS. 
Section 711 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2161) (as amended by section 152 of this Act) is amended 
by adding at the end the following new subsection: 
"(d) TITLE III AUTHORIZATION.—There are authorized to 
be 
appropriated for each of fiscal years 1993, 1994, and 1995 not 
more than $200,000,000 to carry out the provisions of title III 
of this Act". 
SEC. 162. EXTENSION OF PROGRAM. 
The first sentence of section 717(a) of the Defense Production 
Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking "March 
1,1992" and inserting "September 30, 1995". 
SEC. 163. PRESIDENTIAL STUDY. 
Section 721 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170) is amended by adding at the end the following new 
subsection: 
"(k) QUADRENNIAL REPORT.— 
"(1) IN GENERAL.~In order to assist the Congress in its President, 
oversight responsibilities with respect to this section, the Presi-
dent and such agencies as the President shall designate shall 
complete and furnish to the Congress, not later than 1 year 
after the date of enactment of this section and upon the expira-
tion of every 4 years thereafter, a report which— 
"(A) evaluates whether there is credible evidence of 
a coordinated strategy by 1 or more countries or companies 
to acquire United States companies involved in research, 
development, or production of critical technologies for which 
the United States is a leading producer; and 
"(B) evaluates whether there are industrial espionage 
activities directed by foreign governments against private 
United States companies aimed at obtaining commercial 
secrets related to critical technologies. 
"(2) DEFINITION.—For the purposes of this subsection, the 
term 'critical technologies' means technologies identified under 
title VI of the National Science and Technology Policy, 
Organization, and Priorities Act of 1976 or other critical tech-
106 STAT. 4220 
PUBLIC LAW 102-558—OCT. 28,1992 
nology, critical components, or critical technology items essen-
tial to national defense identified pursuant to this section. 
"(3) RELEASE OP UNCLASSIFIED STUDY.—The report required 
by this subsection may be classified. An unclassified version 
of the report shall be made available to the public.*'. 
TITLE II—ADDITIONAL PROVISIONS TO 
IMPROVE INDUSTRIAL PREPAREDNESS 
SEC. 201. DISCOURAGING UNFAIR TRADE PRACTICES. 
Regulations. 
(a) SUSPENSION OR DEBARMENT AUTHORIZED.—^Not later than 
270 days after the date of enactment of this Act, subpart 9.4 
of title 48, Code of Federal Regulations (or any successor regulation) 
shall be amended to specify the circumstances under which a con-
tractor, who has engaged in an unfair trade practice, as defined 
in subsection (b), may be found to presently lack such business 
integrity or business honesty to such a degree as to seriously 
and directly affect the responsibility of the contractor to perform 
any contract awarded by the Federal Government or perform a 
subcontract under such a contract. 
(b) DEFINITION OF *
*
U
N
F
A
m TRADE PRACTICE".—For purposes 
of this section, the term "unfair trade practice" means the commis-
sion of any of the following acts by a contractor: 
(1) UNFAIR TRADE PRACTICES.—An unfair trade practice, 
as determined by the International Trade Commission, for a 
violation of section 337 of the Tariff Act of 1930 (19 U.S.C. 
1337). 
(2) VIOLATION OF AGREEMENTS OF COCOM.—A violation, 
as determined by the Secretary of Commerce, of any agreement 
of the group known as the "Coordinating Committee" for pur-
E
oses of the Export Administration Act of 1979 or any similar 
Uateral or multilateral export control a^*eement. 
(3) FALSE STATEMENTS.—A knowingly false statement 
regarding a material element of a certification concerning the 
foreign content of an item of supply, as determined by the 
Secretary of the department or tne head of the agency to 
which such certificate was fiimished. 
SEC. 202. FRAUDULENT USE OF "MADE IN AMERICA" LABELS. 
Regulations. 
Not later than 270 days after the date of enactment of this 
Act, subpart 9.4 of title 48, Code of Federal Regulations (or any 
successor regulation) shall be amended to specify that any person 
having been determined to have intentionally affixed a label bearing 
a '^ade in America" inscription (or any inscription having the 
same meaning) to a product sold in or shipped to the United 
States may, when such product was not made in the United States, 
be found to presently lack business integrity or business honesty 
to such a degree as to seriously and directly affect the responsibility 
of such person to perform any contract awarded by the Federal 
Government or perform a subcontract under such a contract. 
50 use app. 
SEC. 203. EVALUATION OF DOMESTIC DEFENSE INDUSTRIAL BASE 
2062 note. 
POLICY. 
(a) 
CONGRESSIONAL COMMISSION ON THE EVALUATION OF 
DEFENSE INDUSTRIAL BASE POLICY ESTABLISHED.—There is estab-
Ushed the Congressional Commission on the Evaluation of the 
PUBUC LAW 102-558—OCT. 28, 1992 
106 STAT. 4221 
Defense Industrial Base Policy (hereafter in this section referred 
to as the "Commission'*). 
(b) DUTIES OF THE COMMISSION.— 
(1) IN GENERAL.—^The Conunission shall develop criteria 
for maintaining the strength of the domestic defense industrial 
base for purposes of supporting the national security strategy 
of the United States. 
(2) CONSIDERATION OF AGENCY PROCEDURES AND ACTIVI-
TIES.—^In developing criteria under paragraph (1), the Commis-
sion shall consider, with respect to eadi Federal agency and 
department which has any responsibility for maintaining the 
strength of the domestic defense industrial base— 
(A) the extent to which the statutory authority, poUcies, 
regulations, organizational arrangements, plans, programs, 
and budgets of such agency or department are adequate 
for the puipose of maintaining the strengtii of the domestic 
defense inaustrial base; and 
(B) the degree to which such authority, pohcies, regula-
tions, arrangements, plans, programs, and budgets are 
being effectively implemented and sufficiently coordinated 
(within the agency or department and with other Federal 
agencies and departments). 
(3) 
EVALUATION OF CIVIL-MILITARY INTEGRATION.—The 
Commission, in developing criteria under paragraph (1) and 
considering agency procedures and activities under paragraph 
(2), shall evaluate the feasibility of integrating defense research, 
development, production, acquisition, and other relevant con-
tracting activities with similar activities in the commercial 
sector, and the degree to which such integration is being imple-
mented by the agency or department. 
(c) MEMBERSHIP.— 
(1) NUMBER AND APPOINTMENT.—The Commission shall be 
composed of 9 members, including— 
(A) 3 members appointed by the Speaker of the House 
of Representatives (2 of whom shall be appointed upon 
the recommendation of the msyority leader of the House 
of Representatives and 1 of whom shall be appointed upon 
the recommendation of the minority leader of the House 
of Representatives) from among individuals who are espe-
cially qualified to serve on the Commission by reason of 
their education, training, or experience; 
(B) 3 members appointed by the President pro tempore 
of the Senate (2 of whom shall be appointed upon the 
recommendation of the msgority leader of the Senate and 
1 of whom shall be appointed upon the recommendation 
of the minority leader of the Senate) from among individ-
uals who are especially qualified to serve on the Commis-
sion by reason of their education, training, or experience; 
and 
(C) 3 members appointed by a msgority of the members 
appointed under subparagraphs (A) and (B) from among 
individuals who are especially quaUfied to serve on tiie 
Commission by reason of their education, training, or 
experience. 
(2) TERMS.— 
(A) IN GENERAL.—^Each member shall be appointed 
for the life of the Commission. 
106 STAT. 4222 
PUBLIC LAW 102-558—OCT. 28, 1992 
(B) VACANCY.—^A vacancy in the Commission shall be 
filled in the same manner in which the original appoint-
ment was made. 
(3) PROHIBITION ON COMPENSATION.— 
(A) IN GENERAL.—^Except as provided in subparagraph 
(B), members of the Commission shall serve without pay. 
(B) TRAVEL EXPENSES.—^Each member shall receive 
travel expenses, including per diem in lieu of subsistence, 
in accord£uice with sections 5702 and 5703 of title 5, United 
States Code. 
(4) QUORUM.—^A majority of the members of the Commis-
sion shall constitute a quorum, but a lesser number may hold 
hearings. 
(5) CHAIRPERSON.—^The Chairperson of the Commission 
shall be elected by tiie members of tne Commission from among 
the individuals appointed under paragraph (1)(C). 
(6) MEETINGS.—^The Conmiission shall meet at the call 
of the Chairperson or a majority of the members. 
(d) POWERS OF COMMISSION.— 
(1) HEARINGS AND SESSIONS.— 
(A) IN GENERAL.—^The Commission may, for the pur-
pose of carrying out this section, hold hearings, sit and 
act at times and places, take testimony, and receive evi-
dence as the Commission considers appropriate. 
(B) ADMINISTRATION OF OATHS.—-The Commission may 
administer oaths or affirmations to witnesses appearing 
before the Commission. 
(2) POWERS OP MEMBERS AND AGENTS.—Any member or 
agent of the Conmussion may, if authorized by the Commission, 
take any action which the Commission is authorized to take. 
(3) OBTAINING OFFICIAL DATA.— 
(A) AUTHORITY TO OBTAIN.—^Notwithstanding any pro-
vision of section 552a of title 5, United States Code, the 
Commission may secure directly from any department or 
agency of the United States information necessary to enable 
the Commission to carry out this Act. 
(B) PROCEDURE.—^Upon request of the Chairperson of 
the Commission, the head of a department or agency 
referred to in subparagraph (A) shall furnish the informa-
tion requested to the Commission. 
(C) USE OF INFORMATION.—The Commission shall be 
subject to the same limitations with respect to the use 
or disclosure of any confidential or privileged information, 
trade secrets, or other proprietary or business-sensitive 
information which is obtained from any department or 
agency under this subsection as are appucable to the use 
or disclosure of such information or secrets by such depart-
ment or agency. 
(4) MAILS.—^llie Commission may use the United States 
mails in the same manner and under the same conditions 
as other departments and agencies of the United States. 
(5) ADMINISTRATIVE SUPPORT SERVICES.—^Upon the request 
of the Commission, the Administrator of General Services shall 
provide to the Commission, on a reimbursable basis, the 
administrative support services necessary for the Commission 
to carry out its responsibilities under this section. 
(e) STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.— 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4223 
(1) STAFF.—Subject to such regulations as the Commission 
may prescribe, and with the approval of the Commission, the 
Chairperson may appoint and fix the pay of such personnel 
as the Chairperson considers appropriate. 
(2) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—^The 
stEiflF of the Commission may be appointed without regard to 
the provisions of title 5, United States Code, governing appoint-
ments in the competitive service, and may be paid without 
regard to the provisions of chapter 51 and subchapter III of 
chapter 53 of that title relating to classification and General 
Schedule pay rates, except that £ui individual so appointed 
may not receive pay in excess of the annual rate of basic 
pay payable for GS-18 of the Greneral Schedule. 
(3) EXPERTS AND CONSULTANTS.—Subject to such regula-
tions as the Commission may prescribe, the Chairperson may 
procure temporary and intermittent services imder section 
3109(b) of title 5, United States Code, but at rates for individ-
uals not to exceed the annual rate of basic pay payable for 
GS-18 of the General Schedule. 
(4) STAFF OF FEDERAL AGENCIES.—Upon request of 
the 
Chairperson, the head of any Federal department or agency 
may detail, on a reimbursable basis, any of the personnel 
of that department or agency to the Commission to assist 
it in carrying out its duties under this Act. 
(f) DOMESTIC DEFENSE INDUSTRIAL BASE DEFINED.—For 
the 
purposes of this section, the term "domestic defense industrial base" 
means— 
(1) the industries in the United States and Canada which 
at any time axe providing national defense materials and serv-
ices; and 
(2) the industries in the United States and Canada which 
reasonably would be expected to provide national defense mate-
rials Euid services in a time of emergency or war. 
(g) REPORTS.—^The Commission shall submit to the Congress 
and the President— 
(1) an interim report at the end of the 1-year period begin-
ning on the date the Commission first meets witii a majority 
of members present; and 
(2) a final report not later than March 1, 1995, on the 
findings of the Commission under this section with respect 
to the domestic defense industrial base, together with such 
recommendations for legislative, administrative, or policy action 
as the Commission may determine to be appropriate. 
(h) TERMINATION.—^The Commission shall cease to exist 60 
days after the date on which the final report is submitted pursuant 
to subsection (g)(2). 
(i) AUTHORIZATION OF APPROPIUATIONS.—^There is authorized 
to be appropriated an amotmt equal to not more than $500,000 
to carry out this section, such sums to remain available until 
the termination of the Commission. 
106 STAT. 4224 
PUBLIC LAW 102-558—OCT. 28, 1992 
TITLE III—MISCELLANEOUS 
PROVISIONS 
SEC. 301. ENERGY SECURITY. 
Section 203 of the Geothermal Energy Research, Development, 
and Demonstration Act of 1974 (30 U.S.C. 1143) is amended by 
striking "1990" and inserting "1993". 
SEC. 302. DOMESTIC RETAIL DEPOSIT-TAKING BY FOREIGN BANKS. 
(a) IN GENERAL.—Section 6(c) of the International Banking 
Act of 1978 (12 U.S.C. 3104(c)) is amended— 
(1) in paragraph (1)— 
(A) by inserting "domestic retail" before "deposit 
accounts"; and 
(B) by inserting "and requiring deposit insurance pro-
tection," after "$100,000,"; and 
(2) in paragraph (2)— 
(A) by striking "Deposit" and inserting "Domestic retail 
deposit"; and 
(B) by inserting "that require deposit insurance protec-
tion" after "$100,000". 
12 use 3104 
(b) EFFECTIVE DATE.—^This section, and the amendments made 
^^^' 
by this section, shall have the same effective date as the Federal 
Deposit Insurance Corporation Improvement Act of 1991. 
SEC. 303. DEPOSIT INSURANCE ASSESSMENT RATES FOR LIFELINE 
ACCOUNT DEPOSITS. 
(a) IN GENERAL.—Section 7(b)(2) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1817(b)(2)) (as amended by section 302(a) 
of the Federal Deposit Insurance Corporation Improvement Act 
of 1991) is amended— 
(1) in subparagraph (D), by striking the comma after "mem-
bers"; and 
(2) by adding at the end the following new subparagraph: 
"(H) BANK ENTERPRISE ACT REQUiREMENT.^The Cor-
poration shall design the risk-based assessment system 
so that, insofar as the system bases assessments, directly 
or indirectly, on deposits, the portion of the deposits of 
any insured depository institution which are attributable 
to lifeline accounts established in accordance with the Bank 
Enterprise Act of 1991 shall be subject to assessment at 
a rate determined in accordance with such Act.". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 232(b)(1) of the Federal Deposit Insurance Cor-
12 use 1817. 
poration Improvement Act of 1991 (Public Law 102-242) is 
amended— 
(A) by striking "(8), (9), and (10)" and inserting "and 
(8)"; and 
(B) by striking "(9), (10), and (11)" and inserting "and 
(9)". 
(2) Section 233(a) of the Federal Deposit Insurance Cor-
12 use 1834a. 
poration Improvement Act of 1991 is amended by striking "sec-
tion 235" where such term appears in paragraphs (3) and 
(5) and inserting "section 234". 
(3) Section 7(d)(5) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(d)(4)) (as added by section 233(c)(1) of the 
PUBLIC LAW 102-558—OCT. 28, 1992 
106 STAT. 4225 
12 use 1817, 
1818. 
12 use 1815. 
Federal Deposit Insurance Corporation Improvement Act of 
1991) is amended by striking "section 235" and inserting "sec-
tion 234". 
(4) Effective on the effective date of the amendment made 
Effective date, 
by section 302(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991, section 232(a)(1) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 1834(a)((l)) is amended by striking "7(b)(10)'' and insert-
ing "7(b)(2)(H)". 
(5) Section 10(f) of the Federal Deposit Insurance Act (12 
U.S.C. 1820(f)) (as added by section 302(d) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991) is 
hereby redesignated as subsection (g). 
(6) Section 302(e) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 (Public Law 102-242, 105 
Stat. 2349) is amended— 
(A) by redesignating paragraphs (2), (3), and (4) as 
paragraphs (3), (4), and (5), respectively; and 
(B) by striking paragraph (1) and inserting the fol-
lowing new paragraphs: 
"(1) in section 5(d)(3XB)(i)— 
"(A) by striking 'average assessment base' and insert-
ing 'deposits'; and 
"(B) by striking 'shall—' and all that follows through 
the period and inserting 'shall be treated as deposits which 
are insured by the Savings Association Insurance Fund.'; 
"(2) in section 5(d)(3)(B)(ii)— 
"(A) by striking 'average assessment base' and insert-
ing 'deposits'; and 
"(B) by striking 'shall—' and all that follows through 
the period and inserting 'shall be treated as deposits which 
are insured by the Bank Insurance Fund.'". 
(7) Effective on the effective date of the amendment made 
Effective date, 
by section 302(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991, section 7(b) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(c) (as amended by such section 
302(a)) is amended— 
(A) by adding at the end, the paragraph added to 
such section 7(b) (as in effect on the day before the effective 
date of such amendment) by section 103(b)(2) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991; 
and 
(B) by redesignating such paragraph as paragraph (6). 
(8) Effective on the effective date of the amendment made 
Effective date, 
by section 302(e)(4) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 (as so redesignated by para-
graph (6)(A) of this subsection), section 7(b) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(b)) (as amended by 
section 302(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended by adding after para-
graph (6) (as transferred and so redesignated by paragraph 
(6) of this subsection) the following new paragraph: 
"(7) COMMUNITY ENTERPRISE enEDiTS.—The Corporation 
shall allow a credit against any semiannual assessment to 
any insured depository institution which satisfies the require-
ments of the Community Enterprise Assessment Credit Board 
106 STAT. 4226 
PUBLIC LAW 102-558—OCT. 28, 1992 
under section 233(a)(1) of the Bank Enterprise Act of 1991 
in the amount determined by such Board by regulation.". 
Effective date. 
(9) Effective on the effective date of the amendment made 
by section 302(e)(4) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 (as so redesignated by para-
graph (3)(A) of this subsection), section 233 of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 1834a) is amended— 
(A) in subsection (a)(1)(A), by striking "7(d)(4)" and 
inserting "7(b)(7)"; 
(B) in subsection (a)(3), by striking "7(d)(4)" and insert-
ing "7(b)(7)"; and 
(C) in subsection (e)(2), by striking "made for purposes 
of the notification required under section 7(d)(1)(B)" and 
inserting "of the semiannual assessment to which such 
credit is appUcable". 
50 u s e app. 
SEC. 304. EFFECTIVE DATE. 
"° • 
This Act and the amendments made by this Act shall be deemed 
to have become effective on March 1, 1992, except as otherwise 
specificEilly provided in this Act. 
12USC1815 
SEC. 305. PROVISIONAL REPEAL OF DUPLICATIVE PROVISIONS. 
In the event of the enactment of H.R. 5334 (An Act to amend 
and extend certain laws relating to housing and community develop-
ment, and for other purposes), the following provisions of that 
Act, and the amendments made by such provisions, are repealed, 
effective on the date of enactment of this Act: 
(1) Section 1603(a)(3) of such Act. 
(2) Section 1604(a)( 11) of such Act. 
(3) Paragraphs (1), (2), and (3) of section 1604(b) of such 
Act. 
(3) Paragraphs (2) through (7) of section 1605(a) of such 
Act. 
Approved October 28, 1992. 
LEGISLATIVE HISTORY—S. 347 (H.R. 3039): 
HOUSE REPORTS: No. 102-208, Pt. 1 (Comm. on Banking, Finance and Urban 
Affairs) and Pt. 2 (Comm. on Armed Services), both 
accompanying H.R. 3039, and No. 102-1028 (Comm. of 
Conference). 
CONGRESSIONAL RECORD: 
Vol. 137 (1991): Feb. 21, considered and passed Senate. 
Oct. 2, H.R. 3039 considered and passed House. 
Oct. 10, S. 347 considered and passed House, amended, in lieu of 
H.R. 3039. 
Vol. 138 (1992): Oct. 5, House agreed to conference report. 
Oct. 8, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMEOTS, Vol. 28 (1992): 
Oct. 28, Presidential statement.