Defense Production Act Amendments of 1990

Summary

Defense Production Act Amendments of 1989 - Title I: Defense Industrial Base Restoration - Amends the Defense Production Act of 1950 to restate the defense mobilization preparedness policy of the United States. Places the Federal Emergency Management Agency (FEMA) in charge of coordinating the efforts to maintain geographical dispersion of defense facilities. (Currently, the Office of Defense Mobilization is in charge of such effort.) Requires executive agencies and departments responsible for defense acquisition to continuously assess the capability of the defense industrial base to satisfy near-term and mobilization production requirements. States that plans and programs to carry out the policy stated above shall duly consider the promotion of efficiency and competition. Repeals as inconsistent with changes made under this Act the National Commission on Supplies and Shortages Act of 1974. Expresses certain congressional findings disapproving the growing U.S. dependency on foreign sources for parts and materials used to manufacture major weapons systems for our national defense, and requests the strengthening of the industrial capability of the United States to independently produce its major weapons systems. Directs the President, in exercising his industrial defense preparedness authority, to limit the production of existing and new weapons to domestic manufacturing and assembly sources: (1) within five years following the enactment of this Act; and (2) until domestic sources can meet defense production needs for six months following any declaration of war. Authorizes the President to waive such domestic-production requirement only after considering in each case an economic and defense production impact assessment. Authorizes the President to use certain existing incentives to implement these provisions, subject to specified limitations. Directs the President to designate those industries deemed to be critical to the U.S. defense industrial base, to be given first priority for assistance under this Act for the modernization of manufacturing facilities and equipment and the production of materials. Directs the President to seek to develop the domestic production of materials, services, and skills affecting a critical industry that are in short supply. Authorizes assistance to be provided only to small and medium-sized businesses, unless the President otherwise formally notifies the Congress that the interests of national defense require an exception to such limitation. Title II: Economic Adjustment - Establishes in the Executive Office of the President the Defense Economic Adjustment Council, to be co-chaired by the Secretaries of Commerce and Labor. Establishes in the Executive Office an Office of Economic Adjustment, headed by a Director, to provide staff support to the Council. Directs the Council to disseminate information from the Secretary of Defense to Federal, State, and local agencies concerning proposed or pending changes in defense spending which would affect employment in the defense industry. Requires the Council to perform other duties, including: (1) encouraging the preparation of plans for non-defense-related public projects; (2) coordinating and developing information on priority, federally-funded projects and programs pertaining to defense economic adjustment; and (3) monitoring job services information banks. Directs the Secretary of Defense to provide the pertinent information to the Council a year in advance of any change and to furnish the Council with projected future defense spending levels. Makes eligible for Federal assistance for economic adjustment planning any community which is substantially affected by reduction or elimination of Government defense facilities or curtailment or conclusion of defense contracts. Requires the Council to report to the Congress at least annually on any such economic development program. Directs the Council to use data from other departments to develop criteria which ensures that assistance is directed to those communities that are most vulnerable economically to reductions in defense expenditures. Requires the Council to publish a semiannual list of eligible communities. Requires excess property resulting from a closing or reduction in a Government-owned facility to be appraised for purposes of resale to the community. Makes displaced workers affected by a reduction of the volume of defense work in a defense facility eligible for benefits for two years under this Act. Includes among such benefits: weekly compensation, vested pension credit, maintenance of health insurance, retraining for civilian work, job search allowance, and reimbursement for relocation expenses. Requires completion of a program of professional retraining before certain employees are eligible for assistance. Directs the Council to enter into agreements with a State or agency in the State administering the unemployment compensation law to disburse benefits under this Act. Requires displaced workers to accept any employment determined by the State agency or Secretary of Labor to be comparable to the former job, or benefits will terminate. Excludes these benefits from other determinations of eligibility for unemployment compensation under any Federal or State law. Establishes in the Treasury a Workers Economic Adjustment Reserve Trust Fund. Directs the Secretary of the Treasury to deposit a percentage of the projected savings resulting from a cancellation or cutback in defense spending. Authorizes appropriations to carry out this title.

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Documents

8 official files

• Reported in House (text)

  Reported in House · EN

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• Placed on Calendar Senate (text)

  Placed on Calendar Senate · EN

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• Introduced in House (text)

  Introduced in House · EN

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• Engrossed in House (text)

  Engrossed in House · EN

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• Engrossed Amendment Senate (text)

  Engrossed Amendment Senate · EN

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• Conference report filed in House

  summary · EN · 23 October 1990

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• Passed House amended

  summary · EN · 24 September 1990

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• Introduced in House

  summary · EN · 4 January 1989

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