[Congressional Record Volume 149, Number 170 (Friday, November 21, 2003)]
[Senate]
[Pages S15480-S15481]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             DEFENSE PRODUCTION REAUTHORIZATION ACT OF 2003

  Mr. FRIST. I ask unanimous consent that the Chair now lay before the 
Senate the House message to accompany S. 1680, the Defense Production 
Reauthorization Act.
  The PRESIDING OFFICER laid before the Senate the following message 
from the House, as follows:
       Resolved, That the bill from the Senate (S. 1680) entitled 
     ``An Act to reauthorize the Defense Production Act of 1950, 
     and for other purposes'', do pass with the following 
     amendment:
       Strike out all after the enacting clause and insert:

     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, 2008''.
       (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 
     2008''.

     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 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. REPORT ON IMPACT OF OFFSETS ON DOMESTIC CONTRACTORS 
                   AND HIGHER-TIER SUBCONTRACTORS.

       (a) Assessment of Impact Required.--In addition to the 
     information required to be included in the annual report 
     under section 309 of the Defense Production Act of 1950, the 
     Secretary of Commerce shall assess the net impact, in the 
     defense trade, of foreign sales and related foreign contracts 
     that have been awarded through offsets, industrial 
     participation agreements, or similar arrangements on domestic 
     prime contractors and at least the first 3 tiers of domestic 
     subcontractors during the 5-year period beginning on January 
     1, 1998.
       (b) Report.--Before the end of the 1-year period beginning 
     on the date of the enactment of this Act, the Secretary of 
     Commerce shall submit a report to the Congress containing 
     findings and the conclusions of the Secretary with regard to 
     the assessment made pursuant to subsection (a).
       (c) Copies of Report.--Copies of the report prepared 
     pursuant to subsection (b) shall also be transmitted to the 
     United States Trade Representative and the interagency team 
     established pursuant to section 123(c) of the Defense 
     Production Act Amendments of 1992.

  Mr. FRIST. I ask unanimous consent that the Senate concur with the 
House amendment with an amendment, the motion to reconsider be laid 
upon the table, and that any statements relating to the bill be printed 
in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2209) was agreed to, as follows:

  (Purpose: To modify the reporting requirements of the Secretary of 
                    Commerce and for other purposes)

       On page 6, strike line 1 and all that follows through page 
     7, line 2, and insert the following:

      SEC. 7. REPORT ON IMPACT OF OFFSETS ON DOMESTIC CONTRACTORS 
                   AND LOWER TIER SUBCONTRACTORS.

       (a) Examination of Impact Required.--
       (1) In general.--As part of the annual report required 
     under section 309(a) of the Defense Production Act of 1950 
     (50 U.S.C. App. 2099(a)), the Secretary of Commerce (in this 
     section referred to as the ``Secretary'') shall--
       (A) detail the number of foreign contracts involving 
     domestic contractors that use offsets, industrial 
     participation agreements, or similar arrangements during the 
     preceding 5-year period;
       (B) calculate the aggregate, median, and mean values of the 
     contracts and the offsets, industrial participation 
     agreements, and similar arrangements during the preceding 5-
     year period; and

[[Page S15481]]

       (C) describe the impact of international or foreign sales 
     of United States defense products and related offsets, 
     industrial participation agreements, and similar arrangements 
     on domestic prime contractors and, to the extent practicable, 
     the first 3 tiers of domestic contractors and subcontractors 
     during the preceding 5-year period in terms of domestic 
     employment, including any job losses, on an annual basis.
       (2) Use of internal documents.--To the extent that the 
     Department of Commerce is already in possession of relevant 
     data, the Department shall use internal documents or existing 
     departmental records to carry out paragraph (1).
       (3) Information from non-federal entities.--
       (A) Existing information.--In carrying out paragraph (1), 
     the Secretary shall only require a non-Federal entity to 
     provide information that is available through the existing 
     data collection and reporting systems of that non-Federal 
     entity.
       (B) Format.--The Secretary may require a non-Federal entity 
     to provide information to the Secretary in the same form that 
     is already provided to a foreign government in fulfilling an 
     offset arrangement, industrial participation agreement, or 
     similar arrangement.
       (b) Report.--
       (1) In general.--Before the end of the 8-month period 
     beginning on the date of enactment of this Act, the Secretary 
     shall submit to Congress a report containing the findings and 
     conclusions of the Secretary with regard to the examination 
     made pursuant to subsection (a).
       (2) Copies of report.--The Secretary shall also transmit 
     copies of the report prepared under paragraph (1) to the 
     United States Trade Representative and the interagency team 
     established pursuant to section 123(c) of the Defense 
     Production Act Amendments of 1992 (50 U.S.C. App. 2099 note).
       (c) Responsibilities Regarding Consultation With Foreign 
     Nations.--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.--
       ``(A) In general.--It is the policy of Congress that the 
     President shall designate a chairman of an interagency team 
     comprised of the Secretary of Commerce, Secretary of Defense, 
     United States Trade Representative, Secretary of Labor, and 
     Secretary of State to consult with foreign nations on 
     limiting the adverse effects of offsets in defense 
     procurement without damaging the economy or the defense 
     industrial base of the United States or United States defense 
     production or defense preparedness.
       ``(B) Meetings.--The President shall direct the interagency 
     team to meet on a quarterly basis.
       ``(C) Reports.--The President shall direct the interagency 
     team to submit to Congress an annual report, to be included 
     as part of the report required under section 309(a) of the 
     Defense Production Act of 1950 (50 U.S.C. App. 2099(a)), that 
     describes the results of the consultations of the interagency 
     team under subparagraph (A) and the meetings of the 
     interagency team under subparagraph (B).
       ``(2) Recommendations for modifications.--The interagency 
     team shall submit to the President any recommendations for 
     modifications of any existing or proposed memorandum of 
     understanding between officials acting on behalf of the 
     United States and 1 or more foreign countries (or any 
     instrumentality of a foreign country) relating to--
       ``(A) research, development, or production of defense 
     equipment; or
       ``(B) the reciprocal procurement of defense items.''.

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