[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2394 Introduced in House (IH)]







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 Representatives 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 industrial and 
                technological base as the foundation 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 technological base to 
                ensure that such base is capable of responding to all 
                threats to the national security 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 paragraph (1) for any fiscal year 
        is authorized to be appropriated solely for purchase 
        commitments.''.
    (b) National Defense Preparedness Domestic Industrial Base Board.--
Title III of the Defense Production 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 Preparedness 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 President, from among individuals 
        who--
                    ``(A) are or have been affiliated with the 
                Department of Defense or a military department (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 appointment, 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 vacancy occurring before the 
                expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of that term.
                    ``(B) Continuation of service.--A member may serve 
                after the expiration of that member's term until a 
                successor has taken office.
                    ``(C) Appointment to vacancy.--A vacancy in the 
                Board shall be filled in the manner in which the 
                original appointment was made.
            ``(5) Prohibition of compensation of federal employees.--
        Members of the Board who are full-time officers or employees of 
        the United States may not receive additional pay, allowances, 
        or benefits 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 products, materials, or 
                industrial resources from a domestic concern that is at 
                risk of bankruptcy and whose failure would threaten a 
                critical industry 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 subparagraph (A) shall be 
                kept in storage for use in the event of a national 
                emergency, in accordance with the Strategic and 
                Critical Materials Stock Piling Act, or as the 
                Secretary of Defense or the Secretary of Energy may 
                otherwise provide.
            ``(3) Study and monitor critical industries.--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 
        national security.
            ``(4) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Domestic concern.--The term `domestic 
                concern' has the same meaning given in section 
                104(h)(1) of the Foreign Corrupt Practices 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 resources, 
                        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 industrial 
                        resources--
                                    ``(I) all or substantially all of 
                                the component products, materials, or 
                                resources were mined or produced in the 
                                United States; and
                                    ``(II) all or substantially all of 
                                the manufacturing, processing, 
                                fabrication, 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 hearings, sit and act at 
                times and places, take testimony, and receive evidence 
                as the Board considers 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 reimbursable 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 request of the 
        Board, 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 Board to assist the Board in 
        carrying out this section.''.

SEC. 4. MANDATORY REVIEW OF MERGERS, ACQUISITIONS, AND TAKEOVERS OF 
              DOMESTIC STEEL COMPANIES 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''.
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