[Congressional Record (Bound Edition), Volume 149 (2003), Part 18]
[House]
[Pages 24635-24637]
[From the U.S. Government Publishing Office, www.gpo.gov]




             DEFENSE PRODUCTION ACT REAUTHORIZATION OF 2003

  Mr. KING of New York. Mr. Speaker, I move to suspend the rules and 
pass the Senate bill (S. 1680) to reauthorize the Defense Production 
Act of 1950, and for other purposes, as amended.
  The Clerk read as follows:

                                S. 1680

       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, 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 AND 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, this 
     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 increase 
     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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. King) and the gentlewoman from New York (Mrs. Maloney) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New York (Mr. King).


                             General Leave

  Mr. KING of New York. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks and include extraneous material on this legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. KING of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in strong support of S. 1680, as amended, 
reauthorizing the Defense Production Act of 1950. The language we are 
considering today makes some important decisions to the text the 
Committee on Financial Services passed last spring. Reflecting input 
from the Senate, the legislation adds studies on the effect on the 
economy of defense offsets, not only on prime defense industry 
contractors but on subcontractors, and on the U.S. capacity to produce 
military-grade radiation-hardened electronics. The legislation extends 
the DPA authorities for 5 years as requested by the administration.
  Mr. Speaker, this Chamber rarely considers legislation as important 
as the DPA. In peacetime and in war, it allows for the priority 
production of equipment and material necessary for national security 
and the public health; and with the addition of the language suggested 
by the Senate, now

[[Page 24636]]

it will specifically authorize the act to be used to protect our 
critical infrastructure as well. The act also allows the careful 
tightly targeted use of Federal funds to ensure there is an adequate 
industrial capacity in this country to produce certain vital military 
equipment or material that otherwise would not be available.
  Mr. Speaker, it is important that the House act swiftly to send this 
amended legislation back to the Senate and that the other body quickly 
pass this compromise so that the authorities, which expired at the end 
of last month, are available to civil and military authorities. It is 
inconceivable that the priority production powers in the DPA not be 
available if needed for use in the case of a devastating hurricane or 
earthquake or in the unthinkable event of a terrorist's biological 
weapons attack or to speed up the production of equipment for our 
troops in Afghanistan or Iraq or elsewhere in the world. The 
authorities were used after the September 11 attacks to speed the 
delivery of targeting sensors for the Predator unmanned aerial vehicle 
by nearly 2 years, to speed the delivery of equipment for airports that 
detected explosives, and to speed up production of new high-tech 
bulletproof vests.
  Mr. Speaker, this 5-year reauthorization of the DPA will provide the 
necessary time for a much-needed study and reform of the DPA so that 
Congress may remove obsolete language and clarify or update other 
language. It has been impossible for nearly a decade to reform the act 
on anything other than a piecemeal basis because the reform efforts 
always coincided with reorganization. Decoupling them will finally give 
us the breathing room to do some thoughtful work on the act itself.
  I ask all Members to join with me to pass S. 1680, as amended, and 
then join me in the next couple of years for a thoughtful update of the 
underlying legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. MALONEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of the 5-year reauthorization of the 
Defense Production Act, legislation that is critical to our Nation's 
national defense, to the war on terror, and to our ability to respond 
to disasters. The Defense Production Act was first enacted in 1950. It 
allows the Defense Department and Federal Emergency Management Agency 
to procure supplies quickly on an emergency basis. Its authority is 
also needed to make sure that the national defense industrial base has 
the resources needed for national security. The act expired on 
September 30; and given the current situation in Iraq, it is critical 
that we move this bill today.
  During the current Iraq conflict, the act's authority has been used 
to secure computers, chemical warfare protective clothing, and medical 
equipment. The legislation we are considering is the product of a year 
of bipartisan work and compromise. It was improved during full and 
subcommittee markups in the Committee on Financial Services earlier 
this year. The Senate Banking Committee passed legislation in 
September, and over the last month, Members and staff have worked to 
resolve remaining issues.
  I am pleased that the final bill contains an amendment offered by the 
gentleman from New York (Mr. Meeks) requiring reporting on minority 
contracting. The bill also contains a compromise worked out between the 
committee leadership and Senator Dodd on the issue of offset contracts 
with foreign nations. Offset agreements are arrangements where U.S. 
domestic defense contractors outsource work to foreign contractors as 
part of agreements by foreign countries to purchase U.S. defense 
products. The legislation will require the U.S. Commerce Department to 
assess the economic impact on U.S. contractors and subcontractors of 
these agreements. I am pleased to support this provision with the 
understanding that it fulfills Senator Dodd's concerns. We must be as 
vigilant in protecting the jobs of American workers as we are in 
defending America's national defense.
  Finally, the spirit of bipartisanship with which we have worked on 
this reauthorization would not have been possible without the 
leadership of the gentleman from New York (Mr. King), chairman of the 
Domestic and International Monetary Policy, Trade, and Technology 
Subcommittee. I also wish to thank the gentleman from Massachusetts 
(Mr. Frank), ranking member, and the gentleman from Ohio (Chairman 
Oxley) for their work on this important issue.
  This is legislation our troops need today. It is legislation that our 
constituents may need in the event of a disaster, and I urge my 
colleagues to adopt this bill.
  Mrs. MALONEY. Mr. Speaker, I yield such time as she may consume to 
the gentlewoman from the District of Columbia (Ms. Norton).
  Ms. NORTON. Mr. Speaker, I want to say that I do support the 
gentlewoman's work and the work of the Chair on the Defense Production 
Act, and I am particularly grateful for the Meeks amendment on minority 
contracting. As we now go abroad, it becomes more relevant around the 
world.
  Mrs. MALONEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the distinguished 
gentlewoman for yielding me this time.
  I thank the gentlewoman for her leadership and the gentleman from New 
York (Mr. King) for his leadership on the reauthorization of this bill.
  I think that it is extremely important that we have this particular 
reauthorization at this time in the backdrop of the efforts that have 
been proposed not only by this administration but by this body as it 
relates to the rebuild of Iraq. And as I know the gentlewoman's 
leadership on women's issues and women's participation, I think the 
Meeks amendment is completely appropriate that we give the involvement 
of the minorities and women in contracting.
  When I speak to my constituents in the district, they are 
particularly concerned about the idea of a rebuild, no matter what 
happens ultimately on the floor with this legislation and the fact that 
minority and small businesses do not have the opportunity in engaging 
in this effort and as well participating in efforts with the Defense 
Department, one of the largest budget line items that we have in this 
whole budget of the United States; and it is extremely important that 
we have this opportunity. So I think this is an instructive piece of 
legislation. I think it is very helpful, and I am very glad to rise to 
support this legislation. I know that this is not humorous, but it 
appears that the Speaker finds it humorous, but in any event I hope 
that is not the case, and I support this legislation enthusiastically.
  Mrs. MALONEY. Mr. Speaker, I reserve the balance of my time.

                              {time}  1645

  Mr. KING of New York. Mr. Speaker, I yield myself such time as I may 
consume for the purpose of entering into a colloquy with the 
gentlewoman from New York (Mrs. Maloney).
  Mr. Speaker, as chairman of the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology, I rise today 
regarding the authorization of the Defense Production Act and the 
legislation that the House of Representatives and Senate have produced. 
I wish to make two points.
  First, the House of Representatives and the Senate have agreed to 
include language that makes clear that all the authorities included 
within the DPA may be used for critical infrastructure protection and 
restoration purposes. I have been informed that in past administrations 
there may have been some confusion regarding the applicability of the 
DPA to critical infrastructure. The language included in the 
reauthorization legislation ends any debate that may have existed.
  Secondly, it is the intent of the House that the DPA be interpreted 
to allow the administration to exercise the authorities provided under 
Section 101 of the DPA to directly assist a private sector critical 
infrastructure owner or operator in furtherance of critical 
infrastructure protection or restoration.

[[Page 24637]]

  The House of Representatives' desired interpretation, however, should 
not be construed, in any way, as limiting the applicability of the 
DPA's other authorities with respect to critical infrastructure 
protection and restoration.
  Mrs. MALONEY. Mr. Speaker, will the gentleman yield?
  Mr. KING of New York. I yield to the gentlewoman from New York.
  Mrs. MALONEY. Mr. Speaker, as ranking member of the Subcommittee on 
Domestic and International Monetary Policy, Trade and Technology, I 
rise today to echo the statements of the gentleman from New York (Mr. 
King) regarding the reauthorization of the Defense Production Act and 
its applicability to critical infrastructure protection and 
restoration. The language that the House of Representatives has agreed 
to include in the reauthorizing legislation should leave no doubt that 
the Defense Production Act may be used for critical infrastructure 
protection and restoration purposes.
  Also, it is the intent of the House of Representatives that the 
administration refrain from interpreting the Defense Production Act as 
limiting the administration's ability to provide direct assistance to 
critical infrastructure owners and operators under Section 101 of the 
Defense Production Act.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. KING of New York. Mr. Speaker, I urge passage of the Senate bill. 
Mr. Speaker, I have no further requests for time and I yield back the 
balance of my time.
  The SPEAKER pro tempore (Mr. Petri). The question is on the motion 
offered by the gentleman from New York (Mr. King) that the House 
suspend the rules and pass the Senate bill, S. 1680, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill, as amended, was 
passed.
  A motion to reconsider was laid on the table.

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