[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1269 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1269

    To establish a comprehensive recovery program for communities, 
     businesses, and workers adversely affected by the closure or 
                 realignment of military installations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 9, 1993

Ms. Snowe introduced the following bill; which was referred jointly to 
the Committees on Armed Services, Energy and Commerce, Ways and Means, 
Government Operations, Education and Labor, Banking, Finance and Urban 
              Affairs, and Public Works and Transportation

_______________________________________________________________________

                                 A BILL


 
    To establish a comprehensive recovery program for communities, 
     businesses, and workers adversely affected by the closure or 
                 realignment of military installations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Comprehensive Base 
Closure Reform and Recovery Act of 1993''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
TITLE I--ENVIRONMENTAL RESTORATION AT CERTAIN MILITARY INSTALLATIONS TO 
                               BE CLOSED

Sec. 101. Cleanup schedule for certain bases on Superfund National 
                            Priorities List.
TITLE II--TAX INCENTIVES RELATING TO FEDERAL MILITARY BASE CLOSURES AND 
                              REALIGNMENTS

Sec. 201. Amendment of 1986 code.
Sec. 202. Hiring and investment incentives.
Sec. 203. Treatment of amounts paid on account of military base 
                            closings.
        TITLE III--ECONOMIC ADJUSTMENT AND CONVERSION ASSISTANCE

Sec. 301. Authorization of appropriations for community economic 
                            adjustment assistance and emphasis on 
                            providing such assistance to the most 
                            seriously affected communities.
Sec. 302. Loan guaranty program.
Sec. 303. Increase in average amount of economic planning grants 
                            provided by the Office of Economic 
                            Adjustment.
Sec. 304. Adjustment assistance for employees.
Sec. 305. Conveyance of closed bases to neighboring communities.
Sec. 306. Preference for local and small businesses.
Sec. 307. Expansion of homeowners assistance program to include 
                            employees of local educational agencies 
                            adversely affected by base closures.

  TITLE I--ENVIRONMENTAL RESTORATION AT MILITARY INSTALLATIONS TO BE 
                                 CLOSED

SEC. 101. CLEANUP SCHEDULE FOR CERTAIN BASES ON SUPERFUND NATIONAL 
              PRIORITIES LIST.

    (a) Cleanup Schedule for Certain Bases on National Priorities 
List.--(1) Before a military installation described in subsection (c) 
is closed or substantial reductions in its operations have occurred, at 
least 75 percent of the remedial action required on the installation 
pursuant to the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9601 et seq.) shall be completed.
    (2) Not later than two years after a military installation 
described in subsection (c) is closed or substantial reductions in its 
operations have occurred, all of the remedial action required on the 
installation pursuant to such Act shall be completed.
    (b) Meaning of Substantial Reductions.--For purposes of subsection 
(a), substantial reductions in the operations of a military 
installation shall be considered to have occurred if more than 50 
percent of the personnel assigned to the installation, including 
employees and members of the Armed Forces, have been reassigned and 
moved to another installation.
    (c) Applicability.--This section applies to each military 
installation--
            (1) which is on the National Priorities List under the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601 et seq.); and
            (2) which is to be closed pursuant to title II of the 
        Defense Authorization Amendments and Base Closure and 
        Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note), 
        pursuant to the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
        2687 note), or otherwise by the Department of Defense.
    (d) Definition.--For purposes of this section, the term ``remedial 
action'' has the meaning given that term by section 101 of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.).

TITLE II--TAX INCENTIVES RELATING TO FEDERAL MILITARY BASE CLOSURES AND 
                              REALIGNMENTS

SEC. 201. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to or repeal 
of a section or other provision, such amendment or repeal shall be 
treated as made to a section or other provision of the Internal Revenue 
Code of 1986.

SEC. 202. HIRING AND INVESTMENT INCENTIVES.

    (a) In General.--Chapter 1 (relating to normal tax and surtax 
rules) is amended by inserting after subchapter T the following new 
subchapter:

  ``Subchapter U--Tax Incentives Relating to Closed Federal Military 
                             Installations

                              ``Part I. Definitions.
                              ``Part II. Hiring incentives.
                              ``Part III. Investment incentives.

                         ``PART I--DEFINITIONS

                              ``Sec. 1391. Definitions.

``SEC. 1391. DEFINITIONS.

    ``(a) Applicable Federal Military Installation.--For purposes of 
this subchapter, the term `applicable Federal military installation' 
means a Federal military installation or other facility which is closed 
or realigned under--
            ``(1) the Defense Base Closure and Realignment Act of 1990 
        (10 U.S.C. 2687 note),
            ``(2) title II of the Defense Authorization Amendments and 
        Base Closure and Realignment Act (10 U.S.C. 2687 note), or
            ``(3) section 2687 of title 10, United States Code.
    ``(b) Terminated Employee.--For purposes of this subchapter--
            ``(1) In general.--The term `terminated employee' means an 
        individual who is certified, under procedures similar to the 
        procedures described in section 51(d)(16), as being an 
        individual (whether or not a Federal employee)--
                    ``(A) who was employed on an applicable Federal 
                military installation, and
                    ``(B) whose job was terminated by reason of the 
                closing or realignment of such installation.
            ``(2) Limitation.--An individual shall not be treated as a 
        terminated employee with respect to any job termination after 
        the later of--
                    ``(A) the close of the 2nd calendar year following 
                the calendar year in which the announcement of the job 
                termination occurs, or
                    ``(B) the close of the 1-year period beginning with 
                the date on which the employee first begins work for 
                any employer after the job termination.

                      ``PART II--HIRING INCENTIVES

                              ``Sec. 1392. Targeted jobs credit.

``SEC. 1392. TARGETED JOBS CREDIT.

    ``For purposes of section 38, a terminated employee shall be 
treated as a member of a targeted group for purposes of determining the 
targeted jobs credit under section 51.

                   ``PART III--INVESTMENT INCENTIVES

                              ``Sec. 1393. Capital incentives.

``SEC. 1393. CAPITAL INCENTIVES.

    ``(a) Reduction in Recovery Period for Nonresidential Real and 
Residential Rental Property.--
            ``(1) In general.--For purposes of section 168, the 
        applicable recovery period--
                    ``(A) for any qualified nonresidential real 
                property shall be 21.5 years, and
                    ``(B) for any qualified residential rental property 
                shall be 17.5 years.
            ``(2) Qualified property.--For purposes of paragraph (1), 
        the term `qualified nonresidential real property' or `qualified 
        residential rental property' means nonresidential real property 
        (as defined in section 168(e)(2)(B)) or residential rental 
        property (as defined in section 168(e)(2)(A)), whichever is 
        applicable, which--
                    ``(A) is located on an applicable Federal military 
                installation,
                    ``(B) is used by the taxpayer predominantly in the 
                active conduct of a trade or business on such 
                installation, and
                    ``(C) is placed in service by the taxpayer during 
                the 15-year period beginning on the date of the 
                announcement of the closure or realignment of such 
                installation.
    ``(b) Increase in Amount Which May Be Expensed.--
            ``(1) In general.--In the case of qualified section 179 
        property--
                    ``(A) the limitation under subsection (b)(1) of 
                section 179 with respect to such property shall be 
                equal to the amount determined under paragraph (2), and
                    ``(B) subsection (b)(2) of section 179 shall not 
                apply with respect to such property.
            ``(2) Amount which may be expensed.--For purposes of 
        paragraph (1)(A), the amount under this paragraph shall be 
        equal to the excess (if any) of--
                    ``(A) the lesser of--
                            ``(i) 25 percent of the cost of the 
                        qualified section 179 property (or, if greater, 
                        $10,000), or
                            ``(ii) $200,000, over
                    ``(B) the cost of section 179 property for the 
                taxable year which is not qualified section 179 
                property.
            ``(3) Qualified property.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified section 179 
                property' means section 179 property which is used by 
                the taxpayer predominantly in the active conduct of a 
                trade or business on an applicable Federal military 
                installation.
                    ``(B) Exceptions.--The term `qualified section 179 
                property' does not include--
                            ``(i) property which is used or located 
                        outside of an applicable Federal military 
                        installation on any regular basis, or
                            ``(ii) property the original use of which 
                        commences with the taxpayer after the close of 
                        the 15-year period beginning on the date of the 
                        announcement of the closing or realignment of 
                        such installation.
                    ``(C) Other terms.--The terms `cost' and `section 
                179 property' have the meanings given such terms by 
                section 179.
    ``(c) Related Parties.--
            ``(1) In general.--No property shall be treated as 
        qualified nonresidential real property, qualified residential 
        rental property, or qualified section 179 property if it is 
        acquired (directly or indirectly) by the taxpayer from a person 
        who is related to the taxpayer as of the time of the 
        acquisition.
            ``(2) Related person.--For purposes of paragraph (1), a 
        person (hereafter in this subparagraph referred to as the 
        `related person') is related to any other person if--
                    ``(A) the related person bears a relationship to 
                such other person specified in section 267(b) or 
                707(b)(1), or
                    ``(B) the related person and such other person are 
                engaged in trades or businesses under common control 
                (within the meaning of subsections (a) and (b) of 
                section 52).
        For purposes of subparagraph (A), `10 percent' shall be 
        substituted for `50 percent' in applying sections 267(b)(1) and 
        707(b)(1). In the case of the acquisition of any property by 
        any partnership which results from the termination of another 
        partnership under section 708(b)(1)(B), the determination under 
        this paragraph of whether the acquiring partnership is related 
        to the other partnership shall be made immediately before the 
        event resulting in such termination.
    ``(d) Special Rules for Recapture in Case of Dispositions, Etc.--
            ``(1) In general.--If, during any taxable year, property 
        which is qualified nonresidential real property, qualified 
        residential rental property, or qualified section 179 
        property--
                    ``(A) is disposed of other than to a person who is 
                to continue the use of such property as qualified 
                property, or
                    ``(B) in the case of qualified section 179 
                property, is removed from the applicable Federal 
                military installation, or otherwise ceases to be used 
                in the active conduct of a trade or business on such 
                installation,
        the tax under this chapter for such taxable year shall be 
        increased by the amount described in paragraph (2).
            ``(2) Amount of increase.--The increase in tax under 
        paragraph (1) shall equal the amount which bears the same ratio 
        to the aggregate decrease in the tax for all prior taxable 
        years which resulted solely from the application of this 
        section to the property as the number of taxable years that the 
        property was held by the taxpayer bears to the applicable 
        recovery period for such property under section 312(k).''
    (b) Conforming Amendment.--The table of subchapters for chapter 1 
is amended by inserting after the item relating to subchapter T the 
following new item:

                              ``Subchapter U. Tax incentives relating 
                                        to closed Federal military 
                                        installations.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 203. TREATMENT OF AMOUNTS PAID ON ACCOUNT OF MILITARY BASE 
              CLOSINGS.

    (a) In General.--Section 1034 (relating to rollover of gain on sale 
of principal residence) is amended by redesignating subsection (l) as 
subsection (m) and by inserting after subsection (k) the following new 
subsection:
    ``(l) Treatment of Amounts Paid on Account of Military Base 
Closings.--Amounts received under section 1013(c)(1) of the 
Demonstration Cities and Metropolitan Development Act of 1966 (42 
U.S.C. 3374(c)(1))--
            ``(1) shall be treated for purposes of this chapter as part 
        of the amount realized on the sale of the residence, and
            ``(2) shall not be treated for purposes of this title as 
        compensation for services.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts received in taxable years beginning after December 31, 
1993.

        TITLE III--ECONOMIC ADJUSTMENT AND CONVERSION ASSISTANCE

SEC. 301. AUTHORIZATION OF APPROPRIATIONS FOR COMMUNITY ECONOMIC 
              ADJUSTMENT ASSISTANCE AND EMPHASIS ON PROVIDING SUCH 
              ASSISTANCE TO THE MOST SERIOUSLY AFFECTED COMMUNITIES.

    (a) Priority for the Most Seriously Affected Communities.--
Subsection (a) of section 4103 of the Defense Economic Adjustment, 
Diversification, Conversion, and Stabilization Act of 1990 (division D 
of Public Law 101-510; 104 Stat. 1851) is amended by adding at the end 
the following new sentences: ``In making economic adjustment assistance 
available under this section, the Economic Development Administration 
shall ensure that funds are reserved for communities identified as the 
most substantially and seriously affected by the closure or realignment 
of a military installation or the curtailment, completion, elimination, 
or realignment of a major defense contract or subcontract. The 
Administration shall identify such communities through the use of 
objective evidence, such as increasing unemployment.''.
    (b) Authorization of Appropriations.--Subsection (b) of such 
section is amended by striking out the first sentence and inserting in 
lieu thereof the following: ``There are authorized to be appropriated 
to the Secretary of Defense to carry out subsection (a) $200,000,000 
for each of the fiscal years 1994 through 1996.''.

SEC. 302. LOAN GUARANTY PROGRAM.

    (a) Establishment.--The Secretary of Defense shall establish a 
program to guarantee loans made by approved lenders to civilian 
employees of the Department of Defense employed at or in connection 
with a military installation in the United States to be closed or 
realigned pursuant to the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) 
or title II of the Defense Authorization Amendments and Base Closure 
and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note).
    (b) Amount of Guaranty.--The total amount of loans guaranteed under 
subsection (a) for an employee referred to in that subsection may not 
exceed $10,000.
    (c) Application for Guaranty.--An employee referred to subsection 
(a) shall submit an application to the Secretary, in such form and 
manner as the Secretary may require, to receive a loan guaranty under 
that subsection. Subject to the approval of the Secretary, the employee 
may designate the loan to which the guaranty shall apply. The 
designation of a loan may not be changed after a certificate of 
guaranty is issued for the loan until the loan is completely paid.
    (d) Certificate of Guaranty.--When a loan is guaranteed under this 
section, the Secretary shall provide the lender with a loan guaranty 
certificate or other evidence of the guaranty. The lender may require 
the certificate as a condition of making the loan.
    (e) Approved Lenders.--A loan may be guaranteed under this section 
only if made--
            (1) by a Federal land bank, national bank, State bank, 
        private bank, building and loan association, insurance company, 
        credit union, or mortgage and loan company, that is subject to 
        examination and supervision by an agency of the United States 
        or of a State; or
            (2) by any other lender approved by the Secretary under 
        standards established by the Secretary.
    (f) Default.--In the event of default in the payment of a loan 
guaranteed under this section, the holder of the obligation shall 
notify the Secretary. Upon receipt of that notice, the Secretary shall 
pay to the holder an amount equal to the amount of the loan in default 
or the amount of originally guaranteed, whichever is less. The 
Secretary shall be subrogated to the rights of the holder to the extent 
of the amount paid by the Secretary.

SEC. 303. INCREASE IN AVERAGE AMOUNT OF ECONOMIC PLANNING GRANTS 
              PROVIDED BY THE OFFICE OF ECONOMIC ADJUSTMENT.

    Section 2391(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(6) In the case of a State or local government directly and 
adversely affected by the closure of a military installation, the 
average amount of assistance made available under paragraph (1) to that 
State or local government for planning community adjustments and 
economic diversification in consequence of that closure shall not be 
less than $250,000 per year during the course of that closure.''.

SEC. 304. ADJUSTMENT ASSISTANCE FOR EMPLOYEES.

    Section 4203(a) of the Defense Economic Adjustment, 
Diversification, Conversion, and Stabilization Act of 1990 (division D 
of Public Law 101-510; 104 Stat. 1853) is amended by inserting after 
``fiscal year 1991'' the following: ``and $250,000,000 for each of the 
fiscal years 1994 through 1996.''.

SEC. 305. CONVEYANCE OF CLOSED BASES TO NEIGHBORING COMMUNITIES.

    (a) Findings and Purposes.--(1) The Congress finds the following:
            (A) The Department of Defense has been directed to reduce 
        the size and cost of the military and this can only be 
        accomplished by closing military installations.
            (B) A military installation is a part of the infrastructure 
        of the community in which it is located and there is a long 
        standing symbiotic relationship between a military installation 
        and the community.
            (C) The people in an impacted community have made 
        substantial, long term investments of time, training, and 
        wealth to support the military installation.
            (D) The loss to an impacted community when a military 
        installation is closed may be substantial and in such cases the 
        Congress wishes to mitigate the damage to the impacted 
        community.
            (E) An impacted community knows best the needs of the 
        community and the best way to use available resources to meet 
        these needs consistent with existing national priorities.
            (F) Unfettered ownership of the real property associated 
        with a closed military installation at the earliest possible 
        time can partially offset the loss to a community which results 
        when a military installation is closed.
    (2) The purposes of this section are as follows:
            (A) To benefit communities impacted significantly when a 
        military installation located in such communities is closed by 
        authorizing the real and excess related personal property on 
        which the military installations are located to be conveyed to 
        the impacted community as soon as possible after a decision to 
        close the military installation is made but no later than 180 
        days after closure.
            (B) To provide significantly impacted communities a 
        resource which will aid in mitigating the loss incurred by the 
        community following a decision to close a military installation 
        and which may be used by the impacted community, as the 
        community deems appropriate, for industrial, commercial, 
        residential, recreational, or public uses.
    (b) In General.--Notwithstanding any other provision of law, the 
Secretary of Defense shall convey to an eligible political subdivision 
or subdivisions of a State or to the State in accordance with this 
section all right, title, and interest of the United States in the 
military installation closed pursuant to a base closure law.
    (c) Advance Notice to Eligible States and Political Subdivisions.--
As soon as practicable after a military installation has been 
identified for closure, but in any event not later than the date on 
which the installation is closed, the Secretary shall transmit to the 
appropriate State, and political subdivisions, communities, and 
counties of the State to which property at such installation may be 
conveyed pursuant to this section, advance notification of the 
Secretary's intention to make a conveyance of the property of the 
installation.
    (d) Eligible States and Political Subdivisions.--Property at a 
military installation that is to be conveyed under subsection (b) shall 
be conveyed to a political subdivision or subdivisions or State in the 
following order of priority:
            (1) The Secretary shall convey the property to a political 
        subdivision of a State that is designated in State law to 
        receive the conveyance of such property and accepts the 
        conveyance.
            (2) If there is no political subdivision designated to 
        receive the property pursuant to paragraph (1), the Secretary 
        shall convey the property to the State in which the property is 
        located if the law of that State designates the State to 
        receive the conveyance of such property and the State accepts 
        the conveyance.
            (3) In the case of any real property for which neither a 
        State nor a political subdivision of a State is designated 
        pursuant to paragraph (1) or (2), the Secretary shall consult 
        with appropriate State and local officials to determine the 
        distribution of the property that would best serve the 
        interests of the residents of the State and affected political 
        subdivisions of the State. The Secretary shall convey the 
        property in accordance with the determination made under this 
        paragraph if the selected political subdivision or subdivisions 
        agree to accept the property.
            (4) In the case of any real property that is not accepted 
        under the preceding paragraphs, the Secretary shall offer the 
        property to other departments and agencies of the Federal 
        Government.
    (e) Property To Be Conveyed.--In addition to the conveyance of real 
property to a State or political subdivision pursuant to this section, 
the Secretary shall convey any related personal property that the 
Secretary determines is appropriate for use by the recipient in 
connection with the recipient's use of the real property. Pending such 
conveyance, the Secretary shall maintain the real property and personal 
property to prevent the deterioration of the property.
    (f) Consideration Not To Be Required.--No consideration may be 
required for a conveyance of property pursuant to this section.
    (g) Waiver Authority.--(1) Subject to paragraph (3), the President 
may waive in whole or in part the requirement to convey property at a 
military installation under subsection (b) if the President--
            (A) determines that the continuation of the United States 
        interest in such property--
                    (i) is vital to national security interests; or
                    (ii) the value of the installation is so high that 
                a conveyance to the political subdivision or State 
                would constitute an undue windfall to the community and 
                would not be necessary for the economic recovery of the 
                region; and
            (B) transmits to Congress a certification of such 
        determinations together with the reasons for such 
        determinations.
    (2) The total number of waivers made under paragraph (1) may not 
exceed five military installations for each package of closures 
approved by Defense Base Closure And Realignment Commission under a 
base closure Law, except that a waiver in part shall not count against 
this total if the value of the property reserved does not exceed 25 
percent of the total value of such installation or if the appropriate 
political subdivision or State agrees with the reservation.
    (3) A determination and certification in the case of the closure of 
any military installation shall be effective only if made before the 
earlier of--
            (A) the date on which the installation is closed; or
            (B) December 31 of the year following the year in which the 
        closure of that installation is approved by the President.
    (4) The President may extend the deadline for making a 
determination and certification under paragraph (3) for not more than 
two successive periods of 90 days by transmitting to Congress a 
notification of the extension before the end of the deadline or 
extended deadline, as the case may be.
    (5) The President may withdraw a waiver under paragraph (1) in the 
case of any military installation. Not later than 180 days after the 
withdrawal of the waiver, the Secretary of Defense shall make the 
conveyance required by subsection (b) in accordance with this section.
    (h) Continuing Responsibility of the Department of Defense.--Prior 
to and after any conveyance of real property of a closed military 
installation pursuant to this section, the Secretary of Defense, in 
consultation with the appropriate political subdivision or State, shall 
be responsible for providing economic adjustment and community planning 
assistance (including assistance in conducting public hearings to 
decide the appropriate use of a closed military installation) to 
communities near the closed military installation until such time as 
the economic stability of such communities is achieved, as determined 
by the Secretary.
    (i) Sources of Funding.--The Secretary may expend any funds in a 
base closure account to carry out the responsibilities referred to in 
subsection (h). The Secretary shall notify Congress in advance of the 
obligation of funds for such purpose.
    (j) Improvement of Property Pending Conveyance.--(1) 
Notwithstanding any other provision of law, the Secretary of Defense 
and the head of any other department or agency of the Federal 
Government may continue, on and after the applicable date referred to 
in paragraph (2), to obligate funds (to the extent available) for 
making improvements to the property that has not been conveyed that 
will facilitate the conveyance of the property and are consistent with 
the use to be made of the property by the recipient of the conveyance.
    (2) Paragraph (1) applies in the case of property at a military 
installation on and after the date on which the closure of that 
installation is approved by the President.
    (k) Definitions.--For purposes of the section:
            (1) The term ``military installation'' has the meaning 
        given such term in section 2687(e)(1) of title 10, United 
        States Code.
            (2) The term ``base closure law'' means the following:
                    (A) The Defense Base Closure and Realignment Act of 
                1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note).
                    (B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).
                    (C) Section 2687 of title 10, United States Code.
            (3) The term ``base closure account'' means the following:
                    (A) The Department of Defense Base Closure Account, 
                as established by section 207(a) of the Defense 
                Authorization Amendments and Base Closure and 
                Realignment Act (Public Law 100-526; 10 U.S.C. 2687 
                note).
                    (B) The Department of Defense Base Closure Account 
                1990, as established by section 2906 of the Defense 
                Base Closure and Realignment Act of 1990 (part A of 
                title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).

SEC. 306. PREFERENCE FOR LOCAL AND SMALL BUSINESSES.

    (a) Preference Required.--In entering into contracts with private 
entities as part of the closure or realignment of a military 
installation under a base closure law, the Secretary of Defense shall 
give preference, to the greatest extent practicable, to businesses 
located in the vicinity of the installation and small business 
concerns. Contracts for which this preference shall be given shall 
include contracts to carry out activities for the environmental 
restoration and mitigation at a military installation to be closed or 
realigned.
    (b) Definitions.--For purposes of this section:
            (1) The term ``small business concern'' has the meaning 
        given such term in section 3 of the Small Business Act (15 
        U.S.C. 632).
            (2) The term ``base closure law'' means the following:
                    (A) The Defense Base Closure and Realignment Act of 
                1990 (part A of title XXIX of Public Law 101-510; 104 
                Stat. 1808; 10 U.S.C. 2687 note).
                    (B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).
                    (C) Section 2687 of title 10, United States Code.

SEC. 307. EXPANSION OF HOMEOWNERS ASSISTANCE PROGRAM TO INCLUDE 
              EMPLOYEES OF LOCAL EDUCATIONAL AGENCIES ADVERSELY 
              AFFECTED BY BASE CLOSURES.

    (a) Availability of Homeowners Assistance.--The Secretary of 
Defense shall make available assistance under section 1013(c) of the 
Demonstration Cities and Metropolitan Development Act of 1966 (42 
U.S.C. 3374(c)) to eligible school employees of a local educational 
agency that operates schools in which--
            (1) students are enrolled who are dependent children of 
        members of the Armed Forces or of civilian employees of the 
        Department of Defense;
            (2) enrollments of such students will decline as a result 
        of the closure of a military installation at which the parents 
        of such students are stationed or employed; and
            (3) at the time of the public announcement of the closure 
        of the military installation, such students account for not 
        less than 80 percent of the entire student population of such 
        schools.
    (b) Eligibility Criteria for School Employees.--A school employee 
of a local educational agency described in subsection (a) shall be 
eligible for the benefits of section 1013(c) of the Demonstration 
Cities and Metropolitan Development Act of 1966 if the school 
employee--
            (1) at the time of the public announcement of the closure 
        of the military installation--
                    (A) is the owner-occupant of a dwelling that is 
                situated near the military installation; and
                    (B) is employed by the local educational agency; 
                and
            (2) after such announcement--
                    (A) is terminated or voluntarily released from 
                employment with the local educational agency as a 
                result of actual or anticipated enrollment reductions 
                caused by the closure of the military installation, as 
                determined by the Secretary; and
                    (B) relocates beyond normal commuting distance of 
                the owned dwelling or is unemployed (not as a matter of 
                personal choice) and able to demonstrate to the 
                Secretary such financial hardship as to be unable to 
                meet mortgage payments and related expenses as a result 
                of that unemployment.
    (c) Application.--The Secretary shall establish by rule an 
application procedure by which school employees of a local educational 
agency described in subsection (a) may apply for benefits under section 
1013(c) of the Demonstration Cities and Metropolitan Development Act of 
1966. The rules shall include the time period after the public 
announcement of the closure of a military installation within which 
such applications must be submitted.
    (d) Definitions.--For purposes of this section:
            (1) The term ``local educational agency'' has the meaning 
        given that term in section 1471(12) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 2891(12)).
            (2) The term ``military installation'' has the meaning 
        given that term in section 2687 of title 10, United States 
        Code.
            (3) The term ``school employee'' includes a superintendent, 
        administrator, teacher, or custodial and other support person 
        employed by a local educational agency.
            (4) The term ``Secretary'' means the Secretary of Defense.
    (e) Effective Date.--This section shall apply with respect to 
closures of military installations under the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 
104 Stat. 1808; 10 U.S.C. 2687 note) and title II of Defense 
Authorization Amendments and Base Closure and Realignment Act (Public 
Law 100-526; 102 Stat. 2627; 10 U.S.C. 2687 note) announced before, on, 
or after the date of the enactment of this Act.

                                 <all>

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