[108th Congress Public Law 195]
[From the U.S. Government Printing Office]


[DOCID: f:publ195.108]

[[Page 2891]]

             DEFENSE PRODUCTION ACT REAUTHORIZATION OF 2003

[[Page 117 STAT. 2892]]

Public Law 108-195
108th Congress

                                 An Act


 
    To reauthorize the Defense Production Act of 1950, and for other 
             purposes. <<NOTE: Dec. 19, 2003 -  [S. 1680]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Defense Production Act 
Reauthorization of 2003.>> assembled,

SECTION 1. <<NOTE: 50 USC app. 2061 note.>> 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 first 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. <<NOTE: 50 USC app. 2093 note.>> 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 <<NOTE: Deadline.>> 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

[[Page 117 STAT. 2893]]

        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 
first 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. <<NOTE: 50 USC app. 2062 note.>> REPORT ON CONTRACTING 
                    WITH MINORITY- AND WOMEN-OWNED BUSINESSES.

    (a) Report Required.--Before <<NOTE: Deadline.>> 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.

[[Page 117 STAT. 2894]]

    (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 
                    LOWER TIER SUBCONTRACTORS.

    (a) Examination <<NOTE: 50 USC app. 2062 note.>> 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
                    (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 <<NOTE: Deadline.>> 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).

[[Page 117 STAT. 2895]]

    (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 <<NOTE: President. Establishment.>> 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 one 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.''.

    Approved December 19, 2003.

LEGISLATIVE HISTORY--S. 1680:
---------------------------------------------------------------------------

SENATE REPORTS: No. 108-156 (Comm. on Banking, Housing, and Urban 
Affairs).
CONGRESSIONAL RECORD, Vol. 149 (2003):
            Sept. 30, considered and passed Senate.
            Oct. 15, considered and passed House, amended.
            Nov. 21, Senate concurred in House amendment with an 
                amendment.
            Dec. 8, House concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
            Dec. 19, Presidential statement.

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