Defense Production Act Amendments of 1992/Title I

{{SECTION|SEC. 101.|SEC. 101}}. DECLARATION OF POLICY.

 * Section 2 of the Defense Production Act of 1950 (50 U.S.C. App. 2062) is amended to read as follows:

{{SECTION|SEC. 111.|SEC. 111}}. STRENGTHENING OF DOMESTIC CAPABILITY AND ASSISTANCE FOR SMALL BUSINESSES.

 * Title I of the Defense Production Act of 1950 (50 U.S.C. App. 2071, et seq.) is amended by adding at the end the following new sections:

{{SECTION|SEC. 112.|SEC. 112}}. LIMITATION ON ACTIONS WITHOUT CONGRESSIONAL AUTHORIZATION.

 * Section 104 of the Defense Production Act of 1950 (50 U.S.C. App. 2074) is amended to read as follows:

{{SECTION|SEC. 121.|SEC. 121}}. EXPANDING THE REACH OF EXISTING AUTHORITIES UNDER TITLE III.

 * (a) GUARANTEE AUTHORITY.—
 * Section 301 of the Defense Production Act of 1950 (50 U.S.C. App. 2091) is amended—
 * (1) in subsection (a)(1), by striking “to expedite production and deliveries or services under Government contracts for the procurement of materials or the performance of services for the national defense” and inserting “to expedite or expand production and deliveries or services under Government contracts for the procurement of industrial resources or critical technology items essential to the national defense”;


 * (2) by amending subsection (a)(3)(A) to read as follows:


 * ``(A) the guaranteed contract or activity is for industrial resources or a critical technology item which is essential to the national defense;´´;


 * (3) in subsection (a)(3)(B)—
 * (A) by striking “Without” and inserting “without”; and


 * (B) by striking “the capability for the needed material or service” and inserting “the needed industrial resources or critical technology item”;


 * (4) by amending subsection (a)(3)(D) to read as follows:


 * ``(D) the combination of the United States national defense demand and foreseeable nondefense demand is not less than the output of domestic industrial capability, as determined by the President, including the output to be established through the guarantee.´´;


 * (5) in subsection (e)(1)(A), by striking “Except during periods of national emergency declared by the Congress or the President” and inserting “Except as provided in subparagraph (D)”;


 * (6) in subsection (e)(1)(C), by striking “$25,000,000” and inserting “$50,000,000”; and


 * (7) subsection (e)(1), by adding at the end the following new subparagraph:


 * (b) LOANS TO PRIVATE BUSINESS ENTERPRISES.—
 * Section 302 of the Defense Production Act of 1950 (50 U.S.C. App. 2092) is amended—
 * (1) in subsection (a), by striking “for the procurement of materials or the performance of services for the national defense” and inserting “for the procurement of industrial resources or a critical technology item for the national defense”;


 * (2) by amending subsection (b)(2)(D) to read as follows:


 * ``(D) the combination of the United States national defense demand and foreseeable nondefense demand is not less than the output of domestic industrial capability, as determined by the President, including the output to be established through the loan.´´;


 * (3) in subsection (c)(1), by striking “No such loan may be made under this section, except during periods of national emergency declared by the Congress or the President” and inserting “Except as provided in paragraph (4), no loans may be made under this section”;


 * (4) in subsection (c)(3), by striking “$25,000,000” and inserting “$50,000,000”; or


 * (5) in subsection (c), by adding at the end the following new paragraph:


 * (c) PURCHASES AND PURCHASE COMMITMENTS.—
 * (1) IN GENERAL.—
 * Section 303(a) of the Defense Production Act of 1950 (50 U.S.C. App. 2093(a)) is amended to read as follows:


 * (2) PURCHASE PERIODS.—
 * Section 303(b) of the Defense Production Act of 1950 (50 U.S.C. 2093(b)) is amended by striking “September 30, 1995” and inserting “a date that is not more than 10 years from the date such purchase, purchase commitment, or sale was initially made”.


 * (d) DEVELOPING SUBSTITUTES.—
 * Section 303(g) of the Defense Production Act of 1950 (50 U.S.C. App. 2093(g)) is amended by inserting before the period the following: “, critical components, critical technology items, and other industrial resources”.

{{SECTION|SEC. 122.|SEC. 122}}. DEFENSE PRODUCTION ACT FUND.

 * Section 304 of the Defense Production Act of 1950 (50 U.S.C. App. 2094) is amended to read as follows:

{{SECTION|SEC. 123.|SEC. 123}}. DECLARATION OF OFFSET POLICY.

 * (a) IN GENERAL.—
 * Recognizing that certain offsets for military exports are economically inefficient and market distorting, and mindful of the need to minimize the adverse effects of offsets in military exports while ensuring that the ability of United States firms to compete for military export sales is not undermined, it is the policy of the Congress that—
 * (1) no agency of the United States Government shall encourage, enter directly into, or commit United States firms to any offset arrangement in connection with the sale of defense goods or services to foreign governments;


 * (2) United States Government funds shall not be used to finance offsets in security assistance transactions, except in accordance with policies and procedures that were in existence on March 1, 1992;


 * (3) nothing in this section shall prevent agencies of the United States Government from fulfilling obligations incurred through international agreements entered into before March 1, 1992; and


 * (4) the decision whether to engage in offsets, and the responsibility for negotiating and implementing offset arrangements, reside with the companies involved.


 * (b) PRESIDENTIAL APPROVAL OF EXCEPTIONS.—
 * It is the policy of the Congress that the President may approve an exception to the policy stated in subsection (a) after receiving the recommendation of the National Security Council.


 * (c) CONSULTATION.—
 * It is the policy of the Congress that the President shall designate the Secretary of Defense to lead, in coordination with the Secretary of State, an interagency team to consult with foreign nations on limiting the adverse effects of offsets in defense procurement. The President shall transmit an annual report on the results of these consultations to the Congress as part of the report required under section 309(a) of the Defense Production Act of 1950.

{{SECTION|SEC. 124.|SEC. 124}}. ANNUAL REPORT ON IMPACT OF OFFSETS.

 * Section 309 of the Defense Production Act of 1950 (50 U.S.C. App. 2099) is amended—
 * (1) in subsection (a)—
 * (A) by striking “(a) REPORT REQUIRED.— Not later” and inserting:


 * ``(a) Annual Report on Impact of Offsets.—
 * ``(1) REPORT REQUIRED.— Not later´´;


 * (B) by striking the second sentence; and


 * (C) by adding at the end the following new paragraph:


 * (2) by amending subsection (b) to read as follows:


 * (3) by adding at the end the following new subsections:

{{SECTION|SEC. 125.|SEC. 125}}. CIVIL-MILITARY INTEGRATION.

 * Title III of the Defense Production Act of 1950 is amended by adding at the end the following new section:


 * ``SEC. 310. CIVIL-MILITARY INTEGRATION.


 * ``An important purpose of this title is the creation of production capacity that will remain economically viable after guarantees and other assistance provided under this title have expired.´´.

{{SECTION|SEC. 126.|SEC. 126}}. TESTING, QUALIFICATION, AND USE OF INDUSTRIAL RESOURCES DEVELOPED UNDER TITLE III PROJECTS.

 * (a) IN GENERAL.—
 * Not later than 270 days after the date of enactment of this Act, the single governmentwide Federal Acquisition Regulation, referred to in section 25(c)(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 421(c)(1)) shall be amended to provide for testing and qualification (pursuant to subsection (b)) and use (pursuant to subsection (c)) of the industrial resources manufactured or developed with assistance provided under section 301, 302, or 303 of the Defense Production Act of 1950.


 * (b) TESTING AND QUALIFICATION.—
 * Any testing and qualification required for the use or incorporation of the industrial resource developed or manufactured with such assistance shall be undertaken upon the request of the title III project contractor and the costs of such testing and qualification shall be borne by the department or agency imposing the testing and qualification requirement.


 * (c) USE.—
 * Upon qualification, the industrial resource shall be eligible for use with respect to the development and manufacture of a major system or an item of supply being undertaken by an executive agency.


 * (d) DEFINITIONS.—
 * For purposes of this section—
 * (1) the term “industrial resources” has the same meaning as in section 702(11) of the Defense Production Act of 1950;


 * (2) the term “item of supply” has the same meaning as in section 4(10) of the Office of Federal Procurement Policy Act;


 * (3) the term “major system” has the same meaning as in section 4(9) of the Office of Federal Procurement Policy Act; and


 * (4) the term “title III project contractor” means a contractor who has received assistance for the development or manufacture of an industrial resource under section 301, 302, or 303 of the Defense Production Act of 1950 (50 U.S.C. App. 2091-2093).

{{SECTION|SEC. 131.|SEC. 131}}. SMALL BUSINESS.

 * Section 701 of the Defense Production Act of 1950 (50 U.S.C. App. 2151) is amended to read as follows:

{{SECTION|SEC. 132.|SEC. 132}}. DEFINITIONS.

 * Section 702 of the Defense Production Act of 1950 (50 U.S.C. App. 2152) is amended to read as follows:

{{SECTION|SEC. 133.|SEC. 133}}. APPOINTMENT OF PERSONNEL.

 * Section 703 of the Defense Production Act of 1950 (50 U.S.C. App. 2153) is amended to read as follows:

{{SECTION|SEC. 134.|SEC. 134}}. REGULATIONS AND ORDERS.

 * Section 704 of the Defense Production Act of 1950 (50 U.S.C. App. 2154) is amended to read as follows:

{{SECTION|SEC. 135.|SEC. 135}}. INFORMATION ON THE DEFENSE INDUSTRIAL BASE.

 * Title VII of the Defense Production Act of 1950 (50 U.S.C. App. 2151 et seq.) is amended by adding at the end the following new section:

{{SECTION|SEC. 136.|SEC. 136}}. PUBLIC PARTICIPATION IN RULEMAKING.

 * (a) IN GENERAL.—
 * Section 709 of the Defense Production Act of 1950 (50 U.S.C. 2159) is amended to read as follows:


 * (b) SCOPE OF APPLICATION.—
 * Section 709 of the Defense Production Act of 1950 (50 U.S.C. App. 2159), as amended by subsection (a) of this section, shall not apply to any regulation issued in proposed or final form on or before the date of enactment of this Act.

{{SECTION|SEC. 141.|SEC. 141}}. TECHNICAL CORRECTION.

 * Section 301(e)(2)(B) of the Defense Production Act of 1950 (50 U.S.C. App. 2091(e)(2)(B)) is amended by striking “and to the Committees on Banking and Currency of the respective Houses” and inserting “and to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives”.

{{SECTION|SEC. 142.|SEC. 142}}. INVESTIGATIONS; RECORDS; REPORTS; SUBPOENAS.

 * Section 705 of the Defense Production Act of 1950 (50 U.S.C. App. 2155) is amended—
 * (1) by striking “subpena” each place such term appears and inserting “subpoena”;


 * (2) by redesignating subsections (c), (d), (e), and (f) as subsections (b), (c), (d), and (e), respectively;


 * (3) in subsection (c) (as redesignated by paragraph (2)), by striking “$1,000” and inserting “$10,000”;


 * (4) in subsection (d) (as redesignated by paragraph (2)), by striking all after the first sentence; and


 * (5) in subsection (e) (as redesignated by paragraph (2)), by striking “subpenaed” and inserting “subpoenaed”.

{{SECTION|SEC. 143.|SEC. 143}}. EMPLOYMENT OF PERSONNEL.

 * (a) NOTICE OF APPOINTMENT AND FINANCIAL DISCLOSURE FOR EMPLOYEES SERVING WITHOUT COMPENSATION.—
 * Section 710(b)(6) of the Defense Production Act of 1950 (50 U.S.C. App. 2160(b)(6)) is amended to read as follows:


 * (b) TECHNICAL AMENDMENTS.—
 * Section 710(b) of the Defense Production Act of 1950 (50 U.S.C. App. 2160(b)) is amended—


 * (1) in paragraph (7)—
 * (A) by striking “Chairman of the United States Civil Service Commission” and inserting “Director of the Office of Personnel Management”;


 * (B) by striking “his findings” and inserting “his or her findings”;


 * (C) by striking “and the Joint Committee on Defense Production”; and


 * (D) by striking “he may” and inserting “he or she may”; and


 * (2) in paragraph (8), by striking “transportation and not to exceed $15 per diem in lieu of subsistence while away from their homes or regular places of business pursuant to such appointment” and inserting “reimbursement for travel, subsistence, and other necessary expenses incurred by them in carrying out the functions for which they were appointed in the same manner as persons employed intermittently in the Federal Government are allowed expenses under section 5703 of title 5, United States Code”.

{{SECTION|SEC. 144.|SEC. 144}}. TECHNICAL CORRECTION.

 * Section 711(a)(1) of the Defense Production Act of 1950 (50 U.S.C. App. 2161(a)(1)) is amended by striking “Bureau of the Budget” and inserting “Office of Management and Budget”.

{{SECTION|SEC. 151.|SEC. 151}}. SYNTHETIC FUEL ACTION.

 * Section 307 of the Defense Production Act of 1950 (50 U.S.C. App. 2097) is amended—
 * (1) in subsection (b), by striking the second sentence; and


 * (2) by striking subsection (c) and all that follows through the end of the section.

{{SECTION|SEC. 152.|SEC. 152}}. REPEAL OF INTEREST PAYMENT PROVISIONS.

 * Section 711 of the Defense Production Act of 1950 (50 U.S.C. App. 2161) is amended—
 * (1) by striking subsection (b); and


 * (2) in subsection (a)—


 * (A) by striking “(a)(1) Except as provided in paragraph (2) and paragraph (4)” and inserting the following:


 * ``(a) AUTHORIZATION.—
 * ``(1) IN GENERAL.— Except as provided in subsection (c),´´;


 * (B) in paragraph (1), in the parenthetical, by striking “and for payment of interest under subsection (b) of this section”;


 * (C) by striking paragraph (2);


 * (D) in paragraph (3), by striking “(3) There are” and inserting the following:


 * ``(b) SECTION 305 AUTHORIZATION.— ´´; and


 * (E) in paragraph (4)—
 * (i) by striking “(4)(A) There are” and inserting the following:


 * ``(c) SECTION 303 AUTHORIZATION.— There are´´; and


 * (ii) by striking subparagraph (B).

{{SECTION|SEC. 153.|SEC. 153}}. JOINT COMMITTEE ON DEFENSE PRODUCTION.

 * Section 712 of the Defense Production Act of 1950 (50 U.S.C. App. 2162) is repealed.

{{SECTION|SEC. 154.|SEC. 154}}. PERSONS DISQUALIFIED FOR EMPLOYMENT.

 * Section 716 of the Defense Production Act of 1950 (50 U.S.C. App. 2165) is repealed.

{{SECTION|SEC. 155.|SEC. 155}}. FEASIBILITY STUDY ON UNIFORM COST ACCOUNTING STANDARDS; REPORT SUBMITTED.

 * Section 718 of the Defense Production Act of 1950 (50 U.S.C. App. 2167) is repealed.

{{SECTION|SEC. 156.|SEC. 156}}. NATIONAL COMMISSION ON SUPPLIES AND SHORTAGES.

 * Section 720 of the Defense Production Act of 1950 (50 U.S.C. App. 2169) is repealed.

{{SECTION|SEC. 161.|SEC. 161}}. AUTHORIZATION OF APPROPRIATIONS.

 * Section 711 of the Defense Production Act of 1950 (50 U.S.C. App. 2161) (as amended by section 152 of this Act) is amended by adding at the end the following new subsection:


 * ``(d) TITLE III AUTHORIZATION.— There are authorized to be appropriated for each of fiscal years 1993, 1994, and 1995 not more than $200,000,000 to carry out the provisions of title III of this Act.´´.

{{SECTION|SEC. 162.|SEC. 162}}. EXTENSION OF PROGRAM.

 * The first sentence of section 717(a) of the Defense Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking “March 1, 1992” and inserting “September 30, 1995”.

{{SECTION|SEC. 163.|SEC. 163}}. PRESIDENTIAL STUDY.

 * Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended by adding at the end the following new subsection: