[Congressional Record Volume 149, Number 144 (Wednesday, October 15, 2003)]
[Senate]
[Pages S12621-S12622]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD:
  S. 1738. A bill to reauthorize the Defense Production Act of 1950, 
and for other purposes; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. DODD. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1738

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Defense Production Act 
     Reauthorization of 2003''.

     SEC. 2. REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 1950.

       (a) In General.--The 1st sentence of section 717(a) of the 
     Defense Production Act of 1950 (50 U.S.C. App. 2166(a)) is 
     amended--
       (1) by striking ``sections 708'' and inserting ``sections 
     707, 708,''; and
       (2) by striking ``September 30, 2003'' and inserting 
     ``September 30, 2004''.
       (b) Authorization of Appropriations.--Section 711(b) of the 
     Defense Production Act of 1950 (50 U.S.C. App. 2161(b)) is 
     amended by striking ``through 2003'' and inserting ``through 
     2004''.

     SEC. 3. RESOURCE SHORTFALL FOR RADIATION-HARDENED 
                   ELECTRONICS.

       (a) In General.--Notwithstanding the limitation contained 
     in section 303(a)(6)(C) of the Defense Production Act of 1950 
     (50 U.S.C. App. 2093(a)(6)(C)), the President may take 
     actions under section 303 of the Defense Production Act of 
     1950 to correct the industrial resource shortfall for 
     radiation-hardened

[[Page S12622]]

     electronics, to the extent that such Presidential actions do 
     not cause the aggregate outstanding amount of all such 
     actions to exceed $200,000,000.
       (b) Report by the Secretary.--Before the end of the 6-month 
     period beginning on the date of the enactment of this Act, 
     the Secretary of Defense shall submit a report to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives describing--
       (1) the current state of the domestic industrial base for 
     radiation-hardened electronics;
       (2) the projected requirements of the Department of Defense 
     for radiation-hardened electronics;
       (3) the intentions of the Department of Defense for the 
     industrial base for radiation-hardened electronics; and
       (4) the plans of the Department of Defense for use of 
     providers of radiation-hardened electronics beyond the 
     providers with which the Department had entered into 
     contractual arrangements under the authority of the Defense 
     Production Act of 1950, as of the date of the enactment of 
     this Act.

     SEC. 4. CLARIFICATION OF PRESIDENTIAL AUTHORITY.

       Subsection (a) of section 705 of the Defense Production Act 
     of 1950 (50 U.S.C. App. 2155(a)) is amended by inserting 
     after the end of the 1st sentence the following new sentence: 
     ``The authority of the President under this section includes 
     the authority to obtain information in order to perform 
     industry studies assessing the capabilities of the United 
     States industrial base to support the national defense.''.

     SEC. 5. CRITICAL INFRASTRUCTURE PROTECTION AND RESTORATION.

       Section 702 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2152) is amended--
       (1) by redesignating paragraphs (3) through (17) as 
     paragraphs (4) through (18), respectively;
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Critical infrastructure.--The term `critical 
     infrastructure' means any systems and assets, whether 
     physical or cyber-based, so vital to the United States that 
     the degradation or destruction of such systems and assets 
     would have a debilitating impact on national security, 
     including, but not limited to, national economic security and 
     national public health or safety.''; and
       (3) in paragraph (14) (as so redesignated by paragraph (1) 
     of this section), by inserting ``and critical infrastructure 
     protection and restoration'' before the period at the end of 
     the last sentence.

     SEC. 6. REPORT ON CONTRACTING WITH MINORITY- AND WOMEN-OWNED 
                   BUSINESSES.

       (a) Report Required.--Before the end of the 1-year period 
     beginning on the date of the enactment of this Act, the 
     Secretary of Defense shall submit a report to the Committee 
     on Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives on the extent to which contracts entered into 
     during the fiscal year ending before the end of such 1-year 
     period under the Defense Production Act of 1950 have been 
     contracts with minority- and women-owned businesses.
       (b) Contents of Report.--The report submitted under 
     subsection (a) shall include the following:
       (1) The types of goods and services obtained under 
     contracts with minority- and women-owned businesses under the 
     Defense Production Act of 1950 in the fiscal year covered in 
     the report.
       (2) The dollar amounts of such contracts.
       (3) The ethnicity of the majority owners of such minority- 
     and women-owned businesses.
       (4) A description of the types of barriers in the 
     contracting process, such as requirements for security 
     clearances, that limit contracting opportunities for 
     minority- and women-owned businesses, together with such 
     recommendations for legislative or administrative action as 
     the Secretary of Defense may determine to be appropriate for 
     increasing opportunities for contracting with minority- and 
     women-owned businesses and removing barriers to such 
     increased participation.
       (c) Definitions.--For purposes of this section, the terms 
     ``women-owned business'' and ``minority-owned business'' have 
     the meanings given such terms in section 21A(r) of the 
     Federal Home Loan Bank Act, and the term ``minority'' has the 
     meaning given such term in section 1204(c)(3) of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989.

     SEC. 7. COMMERCE RESPONSIBILITIES REGARDING CONSULTATION WITH 
                   FOREIGN NATIONS.

       (a) Offsets in Defense Procurements.--Section 123(c) of the 
     Defense Production Act Amendments of 1992 (50 U.S.C. App. 
     2099 note) is amended to read as follows:
       ``(c) Negotiations.--
       ``(1) Interagency team.--It is the policy of Congress that 
     the President shall designate the Secretary of Commerce to 
     lead, in coordination with the Secretary of State, an 
     interagency team to negotiate with foreign nations the 
     elimination of offset arrangements, industrial participation, 
     or similar arrangements in defense procurement. The President 
     shall transmit an annual report on the results of these 
     negotiations to the Congress as part of the report required 
     under section 309(a) of the Defense Production Act of 1950.
       ``(2) Recommendations for modifications.--Pending the 
     elimination of the arrangements described in paragraph (1), 
     the interagency team shall submit to the Secretary of Defense 
     any recommendations for modifications of a memorandum of 
     understanding entered into under section 2531 of title 10, 
     United States Code, or a related agreement that the team 
     considers to be an appropriate response to a contractual 
     offset, industrial participation, or similar arrangement that 
     is entered into under the policy to which section 2532 of 
     such title applies.
       ``(3) Notification to ustr regarding offsets.--If the 
     interagency team determines that a foreign country is 
     pursuing a policy on contractual offset arrangements, 
     industrial participation arrangements, or similar 
     arrangements in connection with the purchase of defense 
     equipment or supplies that requires compensation for the 
     purchase in the form of nondefense or dual-use equipment or 
     supplies in a value greater than the defense equipment or 
     supplies, the team shall notify the United States Trade 
     Representative of that determination. Upon receipt of the 
     notification, the United States Trade Representative shall 
     treat the policy and each such arrangement as an act, policy, 
     or practice by the foreign country that is unjustifiable and 
     burdens or restricts United States commerce for purposes of 
     section 304(a)(1) of the Trade Act of 1974 (19 U.S.C. 
     2414(a)(1)), and shall take appropriate action under title 
     III of such Act with respect to such country.''.
       (b) Report on Effects of Foreign Contracts on Domestic 
     Contractors.--Section 309(d)(1) of the Defense Production Act 
     of 1950 (50 U.S.C. App. 2099(d)(1)) is amended--
       (1) in subparagraph (D), by striking ``and'' at the end; 
     and
       (2) in subparagraph (E), by striking the period at the end 
     and inserting the following: ``; and
       ``(F) a compilation of data delineating--
       ``(i) the impact of foreign contracts that have been 
     awarded through offsets, industrial participation agreements, 
     or similar arrangements, on domestic prime contractors, and 
     at least the first three tiers of subcontractors; and
       ``(ii) details of contracts with foreign 1st, 2nd, and 3rd 
     tier subcontractors awarded through offsets, industrial 
     participation agreements, or similar arrangements.''.

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