[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1880 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1880

  To mitigate the adverse effects on defense contractors and defense 
               workers of reductions in defense spending.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 1993

    Mr. Bacchus of Florida introduced the following bill; which was 
 referred jointly to the Committees on Armed Services, Small Business, 
     Education and Labor, Energy and Commerce, Science, Space, and 
           Technology, and Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To mitigate the adverse effects on defense contractors and defense 
               workers of reductions in defense spending.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defense Workers Economic 
Reinvestment Act of 1993''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
              TITLE I--DEFENSE PROCUREMENT SPECIFICATIONS

Sec. 101. Examination of Department of Defense procurement 
                            specifications.
Sec. 102. Greater defense use of commercially available systems, 
                            supplies, and services.
        TITLE II--RETRAINING DEFENSE WORKERS FOR NEW EMPLOYMENT

Sec. 201. Training Oversight and Administration Office.
Sec. 202. Retraining and other transition assistance programs.
Sec. 203. Eligible defense workers.
 TITLE III--COMMERCIALIZATION AND DUAL-USE RESEARCH OPPORTUNITIES FOR 
                 DEFENSE CONTRACTORS AND SMALL BUSINESS

Sec. 301. Promotion of commercialization opportunities for qualified 
                            defense contractors.
Sec. 302. Defense and energy dual-use research under the Small Business 
                            Innovation Research Program.
Sec. 303. Commercialization loans.
Sec. 304. Promotion of industrial parks.
Sec. 305. Defense commercialization award.
   TITLE IV--FAST RESPONSE STATE TECHNOLOGICAL COMPETITIVENESS GRANTS

Sec. 401. Purpose.
Sec. 402. Uses of funds.
Sec. 403. Funding formula.
Sec. 404. State eligibility.
Sec. 405. Authorization of appropriations.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``critical technology'' has the meaning given 
        that term in section 2491(6) of title 10, United States Code.
            (2) The term ``dual-use'' has the meaning given that term 
        in section 2491(2) of title 10, United States Code.
            (3) The term ``eligible defense worker'' means an employee 
        of a qualified defense contractor or a civilian employee of the 
        Department of Defense who is eligible for assistance under 
        title II.
            (4) The terms ``Military-Civilian Integration and 
        Technology Transfer Advisory Board'' and ``Advisory Board'' 
        mean the Military-Civilian Integration and Technology Transfer 
        Advisory Board established under section 2516(a) of title 10, 
        United States Code.
            (5) The terms ``Office of Training Oversight and 
        Administration'' and ``Office'' mean the Office of Training 
        Oversight and Administration established under section 201.
            (6) The term ``qualified defense contractor'' means a 
        private business producing goods or services for the Department 
        of Defense that, during the three years immediately preceding 
        the date of the enactment of this Act--
                    (A) obtained at least 30 percent of its gross 
                income from defense contracts or subcontracts; or
                    (B) had at least 30 percent of its workforce 
                actively engaged in work directly related to defense 
                contracts or subcontracts.

              TITLE I--DEFENSE PROCUREMENT SPECIFICATIONS

SEC. 101. EXAMINATION OF DEPARTMENT OF DEFENSE PROCUREMENT 
              SPECIFICATIONS.

    (a) Examination.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall complete an 
examination of all existing procurement contracts of the Department of 
Defense to determine whether those contracts which apply to dual-use 
technologies contain overly restrictive specifications on systems, 
supplies, and services that are also available commercially.
    (b) Report.--Upon completing the examination required by subsection 
(a), the Secretary of Defense shall submit a report to the Congress 
detailing the results of the examination. In the case of each contract 
examined under subsection (a) which exceeds $100,000 and contains 
Department of Defense specifications precluding the purchase of 
commercial sector products, the report shall include the justification 
for developing a different specification and the reasons for the 
unsuitability of commercial specifications.
    (c) Consultation.--The Secretary of Defense shall consult with the 
Military-Civilian Integration and Technology Transfer Advisory Board in 
conducting the examination required by subsection (a) and the report 
required by subsection (b).

SEC. 102. GREATER DEFENSE USE OF COMMERCIALLY AVAILABLE SYSTEMS, 
              SUPPLIES, AND SERVICES.

    Section 2305(a)(1)(B) of title 10, United States Code, is amended--
            (1) by striking out ``and'' at the end of clause (i);
            (2) by striking out the period at the end of clause (ii); 
        and
            (3) by adding at the end the following new clause:
            ``(iii) encourage the use of commercially available 
        systems, supplies, and services.''.

        TITLE II--RETRAINING DEFENSE WORKERS FOR NEW EMPLOYMENT

SEC. 201. TRAINING OVERSIGHT AND ADMINISTRATION OFFICE.

    (a) Establishment of Office.--The Secretary of Defense shall 
establish an Office of Training Oversight and Administration to 
coordinate and oversee retraining, placement, and other transition 
assistance activities for eligible defense workers. The Office shall be 
under the supervision of the Assistant Secretary of Defense for Force 
Management and Personnel and shall be consolidated with existing 
transition assistance programs for eligible defense workers that are 
currently the responsibility of the Assistant Secretary.
    (b) Information on Retraining Opportunities.--The Office shall 
disseminate information to qualified defense contractors and to 
civilian employees of the Department of Defense concerning the 
availability, scope, and rules governing the retraining and other 
transition assistance programs for eligible defense workers established 
under--
            (1) section 202;
            (2) section 1598 or 2410c of title 10, United States Code; 
        or
            (3) section 325 or 325A of the Job Training Partnership Act 
        (29 U.S.C. 1662d, 1662d-1).
    (c) Placement Assistance.--The Office should ensure that each 
qualified defense contractor informs all employees of the contractor 
regarding the programs referred to in subsection (b). The Office shall 
facilitate placement of eligible defense workers by acting as a 
repository for employment opportunity information and publicizing the 
availability of qualified employees.
    (d) Information Collection.--The Office shall maintain statistics 
to analyze the effectiveness of the retraining and placement programs 
in order to assist the Assistant Secretary and provide any other 
information that the Assistant Secretary may request.

SEC. 202. RETRAINING AND OTHER TRANSITION ASSISTANCE PROGRAMS.

    (a) Skills Development Programs.--The Office, in cooperation with 
other Federal agencies, may enter into agreements to carry out skills 
development programs for the provision of retraining assistance to 
eligible defense workers in skills identified by the Office as being, 
or projected to be, in short supply in the area in which the program 
operates. A skills development program may be developed and taught 
pursuant to the agreement by any Federal agency, State and local 
governments, institutions of higher learning (especially associate-
degree granting colleges), educational consultants, or qualified 
defense contractors. The Office shall have principal responsibility for 
transition assistance to eligible defense workers selected to 
participate in such a skills development program and should consult 
with the Secretary of Labor to avoid duplication with services provided 
by the Department of Labor under section 325 or 325A of the Job 
Training Partnership Act (29 U.S.C. 1662d, 1662d-1).
    (b) Scholarship Programs.--The Office may award one-year and two-
year scholarships to eligible defense workers to assist the recipients 
of the scholarships to attend educational institutions. The 
scholarships shall be awarded on the basis of a competitive selection 
process, except that the Office may give a priority--
            (1) for scholarships in certain critical occupations, as 
        determined by the Office; and
            (2) to eligible defense workers who seek vocational 
        training offered by associate-degree granting colleges.
    (c) Federal Share.--The Federal contribution to a skills 
development program conducted under subsection (a) may not exceed 50 
percent of the costs of the program.
    (d) Allowed Expenses.--Funds provided under this section for a 
skills development program may be used to pay employee certification, 
apprenticeship, or professional registration costs incurred by an 
eligible defense worker receiving retraining to enter a new profession. 
The Secretary may also share any other subsistence costs associated 
with employee transition so long as the Federal funding share does not 
exceed 50 percent of such costs. Extended income support requirements 
can be reduced by the employer through early retraining prior to 
employee termination.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Defense for each of the fiscal years 
1994 through 1996--
            (1) $50,000,000 for skills development programs under 
        subsection (a); and
            (2) $25,000,000 for scholarships under subsection (b).

SEC. 203. ELIGIBLE DEFENSE WORKERS.

    (a) Eligibility Requirements.--To be eligible for selection to 
participate in a skills development program under section 202(a) or 
receive a scholarship under section 202(b), an individual must be--
            (1) a full-time employee of a qualified defense contractor 
        for at least three years who--
                    (A) is directly involved with a Department of 
                Defense funded project which is canceled or experiences 
                a reduction in Federal funds equal to at least 25 
                percent of the Federal funds received for the project 
                the previous year; and
                    (B) as a result of the cancellation or reduction, 
                is terminated or identified by the employer as likely 
                to be terminated within one year; or
            (2) a civilian employee of the Department of Defense who is 
        eligible for transition assistance under rules established by 
        the Secretary of Defense.
    (b) Notification.--A qualified defense contractor shall make a good 
faith effort to identify as early as possible employees who meet the 
eligibility requirements of subsection (a)(1), advise such employees on 
retraining options, and allow such employees to participate in skills 
development programs and other transition assistance programs.
    (c) Certain Previously Terminated Employees.--An employee of a 
qualified defense contractor who was terminated during the one-year 
period ending on the date of the enactment of this Act shall be 
eligible for assistance under section 202 if the Office determines that 
the employee--
            (1) was a full-time employee of a qualified defense 
        contractor for at least three years;
            (2) was directly involved with a Department of Defense 
        funded project; and
            (3) was terminated as a result of the cancellation or a 
        funding reduction of that project.

 TITLE III--COMMERCIALIZATION AND DUAL-USE RESEARCH OPPORTUNITIES FOR 
                 DEFENSE CONTRACTORS AND SMALL BUSINESS

SEC. 301. PROMOTION OF COMMERCIALIZATION OPPORTUNITIES FOR QUALIFIED 
              DEFENSE CONTRACTORS.

    (a) Promotion Programs.--The Secretary of Commerce shall establish 
a program to assist qualified defense contractors to participate in the 
Advanced Technology Program of the National Institute of Standards and 
Technology established under section 28 of the National Institute of 
Standards and Technology Act (15 U.S.C. 278n) and other appropriate 
programs of the Department of Commerce to commercialize significant new 
scientific discoveries and technologies. The Secretary shall include 
language in the solicitations and announcements of such programs to 
encourage proposals concerning critical technology and technology 
transfers from military to civilian applications.
    (b) Notification of Advisory Board.--The Secretary of Commerce 
shall inform the Military-Civilian Integration and Technology Transfer 
Advisory Board of the status of projects involving qualified defense 
contractors.

SEC. 302. DEFENSE AND ENERGY DUAL-USE RESEARCH UNDER THE SMALL BUSINESS 
              INNOVATION RESEARCH PROGRAM.

    (a) Encouragement of Proposals With Dual-Use Application.--The 
Secretary of Defense and the Secretary of Energy, in consultation with 
the Administrator of the Small Business Administration, shall include 
language in solicitations of the Small Business Innovation Research 
Program conducted by the Department of Defense and the Department of 
Energy encouraging research proposals involving dual-use applications 
and proposals involving military to civilian conversion. This 
subsection shall apply with respect to solicitations for projects to be 
funded in fiscal year 1994 and subsequent fiscal years.
    (b) Special Set Aside.--Of the amount of the research and 
development budget of the Department of Defense and the Department of 
Energy required under section 9(f)(1) of the Small Business Act (15 
U.S.C. 638(f)(1)) to be expended with small business concerns in 
connection with the Small Business Innovation Research Program--
            (1) 10 percent of the amount set aside for fiscal year 
        1994;
            (2) 15 percent of the amount set aside for each of the 
        fiscal years 1995 and 1996; and
            (3) 20 percent of the amount set aside for fiscal year 
        1997,
shall be reserved for projects involving dual-use applications and 
projects involving military to civilian conversion.

SEC. 303. COMMERCIALIZATION LOANS.

    (a) Loans Authorized.--The Secretary of Commerce may make loans to 
qualified defense contractors to carry out commercialization projects. 
The potential for the development of a product that has military 
applications and nonmilitary commercial applications shall be a 
criterion in the selection of projects for funding, although not an 
absolute requirement. Other criteria should include the risk of the 
project compared to the utility to consumers and the United States.
    (b) Amount and Number of Loans.--A loan under this section may not 
exceed $2,000,000 for any one commercialization project. No more than 
three loans may be made to any single company or joint venture.
    (c) Terms.--A loan under this section shall be made under such 
terms and conditions as the Secretary of Commerce may require, 
including the payment of fair market interest, except that repayment of 
the loan shall be completed within seven years after the loan is made.
    (d) Matching Requirement.--The recipient of a loan under this 
section shall be required to match the amount of the loan with an equal 
amount of non-Federal funds specifically guaranteed for use in the 
project.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Commerce for fiscal year 1994 
$150,000,000 to carry out this section. Funds appropriated pursuant to 
this subsection shall be available until expended.

SEC. 304. PROMOTION OF INDUSTRIAL PARKS.

    (a) Promotion.--The Secretary of Defense shall encourage the 
creation of industrial parks or technology incubator centers, including 
prototyping facilities, to transfer and spinoff technology from 
qualified defense contractors, including those operating national 
laboratories, to small businesses.
    (b) Uses of Patent Royalties.--The Secretary of Defense may use up 
to 50 percent of the royalties from the licensing of relevant 
Department of Defense and Department of Energy owned patents to assist 
local technology transfer activities conducted in close proximity to 
qualified defense contractor facilities and up to 25 percent of such 
royalties to assist technology transfer activities that are unrelated 
to the proximity of a qualified defense contractor facility.

SEC. 305. DEFENSE COMMERCIALIZATION AWARD.

    (a) Award.--The Secretary of Defense, in consultation with the 
Secretary of Commerce, shall create and administer an awards program to 
foster and encourage innovation and redirection efforts by qualified 
defense contractors in the area of commercialization. Criteria for 
selection of award recipients shall include job creation, leverage of 
Federal funding, and product quality.
    (b) Model.--The Secretary shall model the awards program after the 
Malcolm Baldrige Quality Awards provided under section 17 of the 
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3711a).

   TITLE IV--FAST RESPONSE STATE TECHNOLOGICAL COMPETITIVENESS GRANTS

SEC. 401. PURPOSE.

    The purpose of this title is to provide Federal assistance directly 
to States for defense reinvestment programs to improve existing 
programs and to create new initiatives.

SEC. 402. USES OF FUNDS.

    (a) In General.--Funds made available under this title shall be 
used by States to assist industries, workers, and communities that have 
been adversely affected by the overall reduction of defense spending in 
the State. States may use such funds in conjunction with other Federal 
or State assistance for programs within the public and private sectors, 
involving industry, communities, and educational institutions. 
Qualifying projects should stress economic development, quality job 
growth, education and retraining, technology transfer, technology 
infrastructure, and enhanced competitiveness. Preference in the funding 
of projects should be given to projects concerning the development or 
improvement of transportation infrastructure or environmentally 
sustaining technologies.

SEC. 403. FUNDING FORMULA.

    (a) Allocation.--From the amount appropriated under section 405 for 
a fiscal year, the Secretary of Defense shall allocate such amounts for 
distribution consistent with the formula specified in subsection (b) 
for such fiscal years. The Secretary shall make such allocation in 
consultation with the Military-Civilian Integration and Technology 
Transfer Advisory Board.
    (b) Formula.--From the amount allocated for a fiscal year under 
subsection (a), the Secretary of Defense shall distribute during such 
fiscal year fast response State technological competitiveness grants to 
States whose reinvestment programs meet the requirements of section 404 
as follows:
            (1) 50 percent of the total allocation for that year shall 
        be distributed among the States pro rata based on the ratio of 
        the population of the State to the total population of all 
        States, as determined by the latest available Federal census.
            (2) 50 percent of the total allocation for that year to be 
        distributed among the States pro rata based on the ratio of the 
        cumulative dollar amount of Department of Defense purchases in 
        the State for fiscal year 1992 (including research and 
        development, procurement, operations and maintenance, and 
        construction) to the total dollar amount of such Department of 
        Defense purchases in all the States as determined by the 
        Department of Defense using its most recent official data 
        collected after fiscal year 1990.

SEC. 404. STATE ELIGIBILITY.

    (a) Application Guidelines.--The Secretary of Defense, in 
consultation with the Advisory Board shall develop and disseminate 
guidelines on State eligibility for fast response State technological 
competitiveness grants. The guidelines shall require the following:
            (1) The State shall agree to contribute to the defense 
        reinvestment program of the State an amount equal to at least 
        10 percent of the amount of the technological competitiveness 
        grant made to the State.
            (2) Any program using funds provided under a technological 
        competitiveness grant that is assisting a defense contractor 
        shall require the contractor to provide at least a $1 funding 
        match for every $2 expended in grant funds to assist the 
        contractor.
            (3) In addition to the matching contribution required by 
        paragraph (1), the State shall guarantee to maintain its 
        aggregate expenditures from all other sources for programs 
        which provide technical and financial assistance to defense 
        contractors at or above the average level of such expenditures 
        in the two fiscal years preceding the date of the enactment of 
        this Act.
    (b) State Responsibility.--Prior to receiving a fast response State 
technological competitiveness grant, the Governor of the State shall 
provide to the Secretary of Defense information about the defense 
reinvestment program conducted by the State. The State shall appoint a 
single agency or entity within the State to be the recipient of the 
Federal funding and to administer and oversee the State's reinvestment 
program. Each State must annually report on the progress of its defense 
reinvestment programs back to the Secretary and supply any analysis 
data that the Secretary may require for program evaluation.
    (c) Withholding of Grant Funds.--The Secretary of Defense shall 
withhold a fast response State technological competitiveness grant from 
any State if the Secretary concludes that the State's defense 
reinvestment program or the progress of such program is unsatisfactory 
relative to the published guidelines. In such a case, the Secretary 
shall provide to the State the reasons for its disqualification and 
provide a 90-day appeal period during which the State shall be allowed 
to submit a revised proposal for review by the Secretary.

SEC. 405. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to the 
Secretary of Defense for the fiscal years 1994 through 1996 
$1,000,000,000 for fast response State technological competitiveness 
grants under this title.
    (b) Availability.--Amounts appropriated under subsection (a) shall 
remain available until expended.

                                 <all>

HR 1880 IH----2