AS AMENDED

This Act, divided into titles, may be cited as "the Defense Production Act of 1950. (50 U.S.C. App. 2061)

TABLE OF CONTENTS

Title I-Priorities and allocations.

Title II-Authority to requisition and condemn.

Title III-Expansion of productive capacity and supply.

Title IV--Price and wage stabilization.

Title V--Settlement of labor disputes.

Title VI-Control of consumer and real estate credit.

Title VII--General provisions.

DECLARATION OF POLICY

See. 2. In view of the present international situation and in order to provide for the national defense and national security, our mobilization effort continues to require some diversion of certain materials and facilities from civilian use to military and related purposes. It also requires the development of preparedness programs and

the expansion of productive capacity and supply beyond the levels needed to meet the eivilian demand, in order to reduce the time required for full mobilization in the event of an attack on the United States or to respond to actions occurring outside of the United States which could result in the termination or reduction of the availability of strategie and critical materials, including energy, and which would adversely affect the national defense preparedness of the United States. In order to insure the national defense preparedness which is essential to national security, it is also necessary and appropriate to assure domestie energy supplies for national defense needs.

In order to insure productive capacity in the event of such an attack on the United States, it is the policy of the Congress to encourage the geographical dispersal of the industrial facilities of the United States in the interest of the national defense, and to discourage the concentration of such productive facilities within limited geographical areas which are vulnerable to attack by an enemy of the United States. In the construction of any Government-owned industrial facilities, in the rendition of any Government financial assistance for the construction, expansion, or improvement of any industrial facilities, and in the procurement of goods and services, under this or any other

Act, each department and agency of the Executive Branch shall apply, under the coordination of the Office of Defense Mobilization, when practicable and consistent with existing law and the desirability for maintaining a sound economy, the principle of the geographical dispersal of such facilities in the interest of national defense: Nothing contained in this paragraph shall preclude the use of existing industrial facilities. (50 U.S.C. App. 2062)

Sec. 2. (a)(1) In view of the present international situation, the need for measures to reduce defense production lead times and bottlenecks, and in order to provide for the national defense and national security, our defense mobilization preparedness effort continues to require the development of preparedness programs, defense industrial base improvement measures, and the expansion of domestic productive capacity and supply beyond the levels needed to meet the civilian demand, as well as a need for a maximized response to early warning indicators to ensure the timely availability of adequate industrial production and supply for national defense requirements. Also required is some diversion of certain materials and facilities from civilian use to military and related purposes.

(2) These activities are needed in order to improve defense industrial base efficiency and responsiveness, to reduce the time required for industrial mobilization in the event of a threat to the security of the United States or an attack on the United States or to respond to actions occurring outside of the United States which could result in the termination or reduction of the

availability of strategic and critical materials, including energy, and other industrial resources, and which could adversely affect the national defense preparedness of the United States. In order to ensure the national defense preparedness which is essential to national security, it is also necessary and appropriate to assure the availability of domestic energy supplies for national defense needs.

(b)(1) Executive departments and agencies shall assess the capability of the defense industrial base to satisfy peacetime, surge and mobilization requirements and take necessary actions to ensure that adequate domestic production capacity exists to satisfy these requirements. To ensure that essential mobilization requirements are met, consideration should be given to stockpiling strategic materials to the extent that such stockpiling is economical and feasible.

(2) It is the policy of the Congress that plans and programs to carry out this declaration of policy shall be undertaken with due consideration for promoting efficiency and competition. (50 U.S.C. App. 2062)

Title I--PRIORITIES AND ALLOCA

TIONS

Sec. 101. (a) The President is hereby authorized (1) to require that performance under contracts or orders (other than contracts of employment) which he deems necessary or appropriate to promote the national defense shall take priority over performance under any other contract or order,

and for the purpose of assuring such priority, to require acceptance and performance of such contracts or orders in preference to other contracts or orders by any person he finds to be capable of their performance, and (2) to allocate materials and facilities in such manner, upon such conditions, and to such extent as he shall deem necessary or appropriate to promote the national defense.

(b) The powers granted in this section shall not be used to control the general distribution of any material in the civilian market unless the President finds (1) that such material is a scarce and critical material essential to the national defense, and (2) that the requirements of the national defense for such material cannot otherwise be met without creating a significant dislocation of the normal distribution of such material in the civilian market to such a degree as to create appreciable hardship.

(c)(1) Notwithstanding any other provision of this Act, the President may, by rule or order, require the allocation of, or the priority performance under contracts or orders (other than contracts of employment) relating to, supplies of materials and equipment in order to maximize domestic energy supplies if he makes the findings required by paragraph (3) of this subsection.

(2) The President shall report to the Congress within sixty days after the date of enactment of this subsection on the manner in which the authority contained in paragraph (1) will be administered. This report shall include the manner in which allocations will be made, the procedure for requests and appeals, the criteria for determining

subsection (a) of this section and in effect during the same period. (50 U.S.C. App. 2071)

Sec. 102. In order to prevent hoarding, no person shall accumulate (1) in excess of the reasonable demands of business, personal, or home consumption, or (2) for the purpose of resale at prices in excess of prevailing market prices, materials which have been designated by the President as scarce materials or materials the supply of which would be threatened by such accumulation. The President shall order published in the Federal Register, and in such other manner as he may deem appropriate, every designation of materials the accumulation of which is unlawful and any withdrawal of such designation. In making such designations the President may prescribe such conditions with respect to the accumulation of materials in excess of the reasonable demands of business, personal, or home consumption as he deems necessary to carry out the objectives of this Act. The section shall not be construed to limit the authority contained in sections 101 and 704 of this Act. (50 U.S.C. App. 2072)

Sec. 103. Any person who willfully performs any act prohibited, or willfully fails to perform any act required, by the provisions of this title or any rule, regulation, or order thereunder, shall, upon conviction, be fined not more than $10,000 or imprisoned for not more than one year, or both. (50 U.S.C. App. 2073)

Sec. 104. [The authority contained in this section was added by the Defense Produc

tion Act Amendments of 1951, 65 State. 132,

July 31, 1951. The authority was terminated at the close of June 30, 1953, by section 11 of the Defense Production Act Amendments of 1953, 67 Stat. 131]

Sec. 105. Nothing in this Act shall be construed to authorize the President to institute, without the approval of the Congress, a program for the rationing of gasoline among classes of end-users. (50 U.S.C. App. 2075)

Sec. 106. For purposes of this Act, "energy" shall be designated as a strategic and critical material" after the date of the enactment of this section. Provided, that no provision of this Act shall, by virtue of such designation-

(1) grant any new direct or indirect authority to the President for the mandatory allocation or pricing of any fuel or feedstock (including, but not limited to, crude oil, residual fuel oil, any refined petroleum product, natural gas, or coal) or electricity or any other form of energy; or

(2) grant any new direct or indirect authority to the President to engage in the production of energy in any manner whatsoever (such as oil and gas exploration and development, or any energy facility construction) except as expressly provided in section 305 and 306 for synthetic fuel production. (50 U.S.C. App. 2076)

TITLE II--AUTHORITY TO REQUISITION AND CONDEMN

[The authority to condemn was added by section 102 of the Defense Production Act Amendments of 1951, 65 Stat. 132-133, July