[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2498 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2498

 To assist community, business, and worker readjustment required as a 
   result of the closure of military installations and reductions in 
               defense spending, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 1993

Mr. Goodling introduced the following bill; which was referred jointly 
  to the Committees on Armed Services, Education and Labor, Banking, 
 Finance and Urban Affairs, Public Works and Transportation, and Small 
                                Business

_______________________________________________________________________

                                 A BILL


 
 To assist community, business, and worker readjustment required as a 
   result of the closure of military installations and reductions in 
               defense spending, and for other purposes.

    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 Diversification and 
Community Adjustment Act of 1993''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
  TITLE I--IMPROVED DEFENSE CONVERSION, REINVESTMENT, AND TRANSITION 
                         ASSISTANCE ACTIVITIES

Sec. 101. Definitions.
Sec. 102. Assistant Secretary of Defense for Economic Adjustment.
Sec. 103. Community assistance grants through the Department of 
                            Defense.
Sec. 104. Community economic adjustment assistance through the Economic 
                            Development Administration of the 
                            Department of Commerce.
Sec. 105. Improved notification for dislocated workers of available 
                            assistance.
Sec. 106. Economic diversification and adjustment assistance through 
                            the Department of Defense.
Sec. 107. Small business assistance through the Department of Defense.
Sec. 108. Information and coordination services.
Sec. 109. Authority to allow one-year moratorium on payment of rent for 
                            use of certain property by certain defense 
                            contractors for non-government purposes.
Sec. 110. Authorization of appropriations.
TITLE II--IMPROVEMENTS TO THE DEFENSE DIVERSIFICATION PROGRAM UNDER THE 
                      JOB TRAINING PARTNERSHIP ACT

Sec. 201. Transfer of authority to carry out program from Secretary of 
                            Defense to Secretary of Labor.
Sec. 202. Authorization of appropriations.
Sec. 203. Effective date.

  TITLE I--IMPROVED DEFENSE CONVERSION, REINVESTMENT, AND TRANSITION 
                         ASSISTANCE ACTIVITIES

SEC. 101. DEFINITIONS.

    For purposes of this title:
            (1) The term ``community adjustment committee'' means an 
        entity formed to aid in adjustment activities for a 
        substantially and seriously affected community following the 
        announcement or a proposed announcement of a reduction in a 
        defense contract or subcontract, reductions or termination of 
        operations at a defense facility.
            (2) The term ``defense agency'' means the Department of 
        Defense, the Department of Energy, the National Aeronautics and 
        Space Administration, the Coast Guard, and other Federal 
        agencies with respect to defense-related operations of the 
        agency.
            (3) The term ``defense contract'' means any contract 
        entered into between a person and a defense agency to provide 
        material or defense-related operations.
            (4) The term ``defense contractor'' means any person 
        engaged in the furnishing of defense material pursuant to the 
        terms of a defense contract, including components 
        manufacturers, suppliers, and service contractors.
            (5) The term ``defense facility'' means--
                    (A) any private plant or other establishment (or 
                part thereof) used under a defense contract or 
                subcontract or engaged in the production, repair, 
                modification, storage, or handling of defense material; 
                or
                    (B) any government-owned or government-leased 
                facility (including military installations) used by a 
                defense agency.
            (6) The term ``defense subcontract'' means any subcontract 
        entered into between a person and a defense contractor to 
        provide material or defense-related operations.
            (7) The term ``defense subcontractor'' means any facility 
        engaged in the furnishing of defense material pursuant to the 
        terms of a defense subcontract.
            (8) The term ``military installation'' means a base, camp, 
        post, station, yard, center, or homeport facility for any ship 
        in the United States, or any other facility under the 
        jurisdiction of a military department located in the United 
        States.
            (9) The term ``qualified small business'' means a small 
        business concern that--
                    (A) employs less than 500 workers;
                    (B) is independently owned and operated;
                    (C) derives at least 25 percent of its gross 
                revenues from defense contracts or subcontracts; and
                    (D) can demonstrate that--
                            (i) it has either experienced or will 
                        experience the loss of a defense contract or 
                        subcontract causing significant reductions in 
                        the volume of defense-related work in relation 
                        to the total defense work in such facility; or
                            (ii) the loss of a defense facility, 
                        contractor, subcontractor will substantially 
                        and seriously affect its business.
            (10) The term ``substantially and seriously affected 
        community'' means a community--
                    (A) which has within its administrative and 
                political jurisdiction 1 or more military installations 
                or defense facilities or which is economically affected 
                by proximity to a military installation or defense 
                facility;
                    (B) in which the actual or threatened curtailment, 
                completion, elimination, or realignment of a defense 
                contract results in a workforce reduction of--
                            (i) 2,500 or more employee positions, in 
                        the case of a Primary Metropolitan Statistical 
                        Area or similar area (as defined by the 
                        Director of the Office of Management and 
                        Budget);
                            (ii) 500 or more employee positions, in the 
                        case of a Metropolitan Statistical Area or 
                        similar area (as defined by the Director of the 
                        Office of Management and Budget);
                            (iii) 250 or more employee positions, in 
                        the case of a labor market area outside of a 
                        Metropolitan Statistical Area; or
                            (iv) one percent of the total number of 
                        civilian jobs in that area; and
                    (C) which establishes, by evidence, that any 
                workforce reduction referred to in subparagraph (B) 
                occurred as a direct result of changes in Department of 
                Defense requirements or programs.
            (11) The term ``substantially and seriously affected 
        business'' means a defense contractor or defense subcontractor 
        which--
                    (A) experiences a reduction, or the threat of a 
                reduction, of--
                            (i) 25 percent or more in sales or 
                        production; or
                            (ii) 80 percent or more of the workforce of 
                        such business in any division of such business 
                        or at any plant or other facility of such 
                        business; and
                    (B) establishes, by evidence, that the reductions 
                referred to in subparagraph (A) occurred as a direct 
                result of a reduction in the defense budget.

SEC. 102. ASSISTANT SECRETARY OF DEFENSE FOR ECONOMIC ADJUSTMENT.

    (a) Designation of Assistant Secretary.--Subsection (b) of section 
136 of title 10, United States Code, is amended by adding at the end 
the following new paragraph:
    ``(5)(A) One of the Assistant Secretaries shall be the Assistant 
Secretary of Defense for Economic Adjustment who shall be responsible 
to the Secretary of Defense for the economic conversion program of the 
United States, including--
            ``(i) assessment of defense economic adjustment problems;
            ``(ii) consultation with States and communities adversely 
        affected by reductions in defense spending, the completion or 
        termination of a defense contract or subcontract, or the 
        closure or realignment of a military installation;
            ``(iii) development of measures to relieve such adverse 
        effects; and
            ``(iv) provision of assistance to such States and 
        communities for conversion and adjustment purposes.
    ``(B) The Assistant Secretary shall serve as the head of the Office 
of Economic Adjustment of the Department of Defense and shall supervise 
the activities of four directors, to be appointed by the Secretary of 
Defense, in the following areas:
            ``(i) Community assistance.
            ``(ii) Economic diversification and adjustment.
            ``(iii) Assistance for dislocated workers.
            ``(iv) Coordination and informational activities.''.
    (b) Increase in Number of Assistant Secretaries.--(1) Subsection 
(a) of such section is amended by striking out ``eleven'' and inserting 
in lieu thereof ``twelve''.
    (2) Section 5315 of title 5, United States Code, is amended by 
striking out ``Assistant Secretaries of Defense (11).'' and inserting 
in lieu thereof ``Assistant Secretaries of Defense (12).''

SEC. 103. COMMUNITY ASSISTANCE GRANTS THROUGH THE DEPARTMENT OF 
              DEFENSE.

    (a) Community Adjustment Plan.--The Assistant Secretary of Defense 
for Economic Adjustment shall facilitate the development of a community 
adjustment plan for each substantially and seriously affected community 
by members of that community to reduce the adverse effects of defense 
downsizing. The Assistant Secretary shall carry out this section 
through the Director of Community Assistance appointed under section 
136(b)(5) of title 10, United States Code.
    (b) Community Adjustment Committees.--
            (1) In general.--The Director shall facilitate and aid in 
        the formation of a community adjustment committee for each 
        substantially and seriously affected community. Except as 
        provided in paragraph (2), to receive assistance under this 
        subsection, a community adjustment committee must contain the 
        following members:
                    (A) At least 3 representatives from the management 
                of defense facilities in the community.
                    (B) At least 3 representatives of employees of 
                defense facilities in the community.
                    (C) At least 3 representatives of the local 
                government of the community.
                    (D) At least 3 representatives of nongovernmental 
                leaders in the community.
            (2) Existing community adjustment committee.--The 
        requirement described in the second sentence of paragraph (1) 
        shall not apply in the case of a community adjustment committee 
        which is in existence as of the date of the enactment of this 
        subsection.
    (c) Technical Assistance for Committees.--(1) Grants and assistance 
may be made available following the formation of a community adjustment 
committee for the purpose of providing the committee with technical 
assistance. A grant may be made--
            (A) to provide for a business expert to examine the 
        potential market needs of the region in which the community is 
        located to identify economic adjustment and conversion 
        opportunities for defense facilities in the community; and
            (B) to provide for a technological expert to determine the 
        feasibility of various adjustment and conversion alternatives 
        for defense facilities in the community.
    (2) Grants and other assistance under this subsection may not 
exceed $100,000 per community adjustment committee.
    (d) Economic Development Grants.--(1) A substantially and seriously 
affected community that has a community adjustment committee and has 
developed and is ready to implement a community adjustment plan 
approved by the Director shall be eligible for grants under this 
subsection.
    (2) A grant under this subsection may be used to implement a 
community adjustment plan to relieve the stress caused upon a community 
as a result of defense downsizing. The grants may be used to--
            (A) implement the ideas of the community adjustment 
        committee findings for the community;
            (B) hire an economic development consultant to aid in the 
        management and facilitation efforts of conversion;
            (C) develop specific action plans for conversion; and
            (D) apply to the Economic Development Administration of the 
        Department of Commerce for conversion assistance.

SEC. 104. COMMUNITY ECONOMIC ADJUSTMENT ASSISTANCE THROUGH THE ECONOMIC 
              DEVELOPMENT ADMINISTRATION OF THE DEPARTMENT OF COMMERCE.

    (a) Assistance Authorized.--A community that has been determined by 
the Economic Development Administration of the Department of Commerce, 
in consultation with the Office of Economic Adjustment of the 
Department of Defense, to be a substantially and seriously affected 
community shall be eligible for economic adjustment assistance 
authorized under title IX of the Public Works and Economic Development 
Act of 1965, subject to the availability of appropriations for such 
purpose and subject to meeting the eligibility requirements of such 
title.
    (b) Process.--Any determination made under subsection (a) shall be 
made in accordance with the standards and procedures established by the 
Economic Adjustment Committee established in Executive Order 12049 (10 
U.S.C. 111 note).

SEC. 105. IMPROVED NOTIFICATION FOR DISLOCATED WORKERS OF AVAILABLE 
              ASSISTANCE.

    Section 4201 of the Defense Economic Adjustment, Diversification, 
Conversion, and Stabilization Act of 1990 (Public Law 101-510; 104 
Stat. 1851) is amended by adding at the end the following new 
subsection:
    ``(c) Role of Director of Dislocated Workers.--The Assistant 
Secretary of Defense for Economic Adjustment shall be responsible for 
the notification requirements imposed by this section. The Assistant 
Secretary shall carry out this subsection through the Director for 
Dislocated Workers appointed under section 136(b)(5) of title 10, 
United States Code. The Director shall develop a method of rapidly 
identifying substantially and seriously affected businesses and 
qualified small businesses in order to provide for sufficient time to 
allow workers with such businesses to enroll in adjustment programs, 
such as the defense conversion adjustment program under sections 325 
and 325A of the Job Training Partnership Act (29 U.S.C. 1662d, 1662d-
1).''.

SEC. 106. ECONOMIC DIVERSIFICATION AND ADJUSTMENT ASSISTANCE THROUGH 
              THE DEPARTMENT OF DEFENSE.

    (a) In General.--The Assistant Secretary of Defense for Economic 
Adjustment shall be responsible for assessment and conversion 
possibilities for defense contractors, subcontractors, and qualified 
small businesses in a substantially and seriously affected community. 
The Assistant Secretary shall carry out this section through the 
Director of Diversification and Adjustment appointed under section 
136(b)(5) of title 10, United States Code. The Director shall use 
technical assistance of the Department of Defense to assist in the 
conversion and retention of defense capabilities, the retooling of 
defense-related infrastructure to commercial use, and research and 
development related to conversion.
    (b) Retention of Critical Technologies.--The Director, in 
conjunction with the Director of the Defense Logistics Agency, will 
develop a listing of Department of Defense classified and nonclassified 
critical technologies to target those businesses involved in the 
production of critical technologies that could be lost due to a defense 
downsizing or reduction. The Director will work with the Secretary of 
Defense to provide grants and technical assistance to aid in the 
retention of critical technologies that have a chance to be lost due to 
downsizing.

SEC. 107. SMALL BUSINESS ASSISTANCE THROUGH THE DEPARTMENT OF DEFENSE.

    (a) Business Grants and Loans.--
            (1) Assistance for qualified small businesses.--A qualified 
        small business may apply to the Assistant Secretary of Defense 
        for Economic Adjustment for grants and other assistance to aid 
        in conversion to nondefense activities. The Assistant Secretary 
        shall carry out this section through the Director of Community 
        Assistance Grants appointed under section 136(b)(5) of title 
        10, United States Code.
            (2) Assistance for employees.--The Director may also assist 
        employees or former employees of a defense contractor or 
        defense subcontractor to establish a small business concern.
            (3) Use of grants.--A grant made under this subsection may 
        be used--
                    (A) to facilitate the conversion of a defense-
                related business to a nondefense-related business;
                    (B) to develop new business opportunities and 
                markets for a qualified small business; and
                    (C) for the purpose of retooling or machinery 
                purchases for the purpose of commercial manufacturing.
    (b) Improved Cooperation Between DOD and SBA.--The Assistant 
Secretary of Defense for Economic Adjustment shall work with the 
Administrator of the Small Business Administration--
            (1) to coordinate their activities on behalf of qualified 
        small businesses;
            (2) to target substantially and seriously affected 
        communities to provide assistance from the Small Business 
        Administration to aid in the conversion of qualified small 
        businesses to nondefense activities;
            (3) to provide a listing of lenders, that are approved by 
        the Administrator, to qualified small businesses to assist such 
        businesses to receive financing for defense conversion 
        activities; and
            (4) to provide information to former employees of defense 
        facilities, defense contractors, and defense subcontractors, 
        and qualified small businesses to assist in the possible 
        formation of new small businesses.

SEC. 108. INFORMATION AND COORDINATION SERVICES.

    (a) Listing of Conversion, Reinvestment, and Transition Programs.--
The Assistant Secretary of Defense for Economic Adjustment shall 
develop and maintain a list of all Federal programs concerned with the 
assessment and relief of defense economic adjustment problems resulting 
from reductions in defense spending, the completion or termination of 
defense contracts and subcontracts, the displacement of defense workers 
and members of the Armed Forces, and the closure or realignment of 
military installations.
    (b) Informational Responsibilities.--The Assistant Secretary of 
Defense for Economic Adjustment shall provide informational services to 
defense contractors and defense subcontractors that desire to enter 
into partnerships under subchapter III of chapter 148 of title 10, 
United States Code, for the purpose of developing, applying, or 
marketing dual-use technologies or for other business purposes. In 
carrying out this subsection, the Assistant Secretary shall consult 
with the Federal Trade Commission to ensure that any such partnership 
formed is consistent with the provisions of all applicable Antitrust 
Acts, as defined in section 4 of the Federal Trade Commission Act (15 
U.S.C. 44).
    (c) Use of Director of Coordination and Informational Activities.--
The Assistant Secretary shall carry out this section through the 
Director of Coordination and Informational Activities appointed under 
section 136(b)(5) of title 10, United States Code. The Director shall 
develop the list required by subsection (a) in consultation with 
appropriate officers of the Department of Commerce, the Department of 
Labor, and the Small Business Administration.

SEC. 109. AUTHORITY TO ALLOW ONE-YEAR MORATORIUM ON PAYMENT OF RENT FOR 
              USE OF CERTAIN PROPERTY BY CERTAIN DEFENSE CONTRACTORS 
              FOR NON-GOVERNMENT PURPOSES.

    (a) Authority.--(1) With respect to production and research 
property owned by the Government, the Secretary of Defense is 
authorized to provide a one-year moratorium on the payment of rent for 
non-Government use of that property by any defense contractor described 
in subsection (b). After the expiration of the moratorium, the 
Secretary shall collect the rent from the defense contractor for the 
use of the property during that year over such period of time as the 
Secretary considers appropriate.
    (2) The authority provided in this subsection applies whether or 
not the property is required by the Department of Defense for 
performance of defense contracts or subcontracts.
    (b) Contractors Covered.--Subsection (a) applies to any person 
under contract with the Department of Defense which is affected by a 
termination or significant reduction of major research and development 
programs and procurement programs of the Department of Defense.
    (c) Definitions.--For purposes of this section:
            (1) The term ``non-Government use'' means use other than 
        for purposes in support of a contract with the Department of 
        Defense, including direct commercial sales to domestic and 
        foreign customers.
            (2) The term ``production and research property'' has the 
        meaning provided under the provisions of the Federal 
        Acquisition Regulation relating to contractor use and rental of 
        Government property.
    (d) Effective Date.--The authority provided by this subsection 
shall take effect on October 1, 1993.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Secretary of Defense $300,000,000 for fiscal year 1994 to carry out 
activities under sections 103, 106, 107, and 108 of this Act and 
section 4201(c) of the Defense Economic Adjustment, Diversification, 
Conversion, and Stabilization Act of 1990 (as added by section 105 of 
this Act).
    (b) Procurement Technical Assistance.--There are authorized to be 
appropriated to the Secretary of Defense $25,000,000 for fiscal year 
1994 for the purpose of providing procurement technical assistance 
under section 2418 of title 10, United States Code, through the 
procurement technical assistance centers.
    (c) Defense Dual-Use Assistance Extension Program.--There are 
authorized to be appropriated to the Secretary of Defense $75,000,000 
for fiscal year 1994 to carry out the defense dual-use assistance 
extension program under section 2524 of title 10, United States Code, 
of which--
            (1) $50,000,000 shall be available to support the 
        conversion technology research programs of the National 
        Institute of Standards and Technology; and
            (2) $25,000,000 shall be available to support the 
        manufacturing extension program.
    (d) Availability of Appropriations.--Amounts appropriated pursuant 
to this section shall remain available until expended.

TITLE II--IMPROVEMENTS TO THE DEFENSE DIVERSIFICATION PROGRAM UNDER THE 
                      JOB TRAINING PARTNERSHIP ACT

SEC. 201. TRANSFER OF AUTHORITY TO CARRY OUT PROGRAM FROM SECRETARY OF 
              DEFENSE TO SECRETARY OF LABOR.

    Section 325A of the Job Training Partnership Act (29 U.S.C. 1662d-
1) is amended--
            (1) in subsection (a), by striking ``From the amount made 
        available'' and all that follows through ``Secretary of 
        Labor,'' and inserting ``The Secretary'';
            (2) in subsection (c), by striking ``Secretary of Defense'' 
        each place it appears and inserting ``Secretary'';
            (3) in subsection (d)--
                    (A) in the introductory sentence of paragraph (1), 
                by striking ``of Defense'';
                    (B) in paragraph (1)(A), by striking ``in 
                consultation with the Secretary of Labor,''; and
                    (C) in the introductory sentence of paragraph (2), 
                by striking ``of Defense'';
            (4) in subsection (e)--
                    (A) in the heading of such subsection, by striking 
                ``of Defense''; and
                    (B) by striking ``Secretary of Defense'' each place 
                it appears and inserting ``Secretary'';
            (5) in subsection (i), by striking ``of Defense''; and
            (6) in subsection (k)--
                    (A) in the introductory sentence of paragraph (1), 
                by striking ``the Secretary of Defense, in consultation 
                with the Secretary of Labor'' and inserting ``the 
                Secretary, in consultation with the Secretary of 
                Defense''; and
                    (B) in paragraph (2), by striking ``of Defense''.

SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

    Section 3 of the such Act is amended by adding at the end the 
following new subsection:
    ``(g)(1) There are authorized to be appropriated to carry out 
section 325A $50,000,000 for fiscal year 1994.
    ``(2) Amounts authorized to be appropriated under paragraph (1) are 
in addition to amounts authorized to be appropriated and made available 
to carry out such section pursuant to--
            ``(A) subsection (b); and
            ``(B) section 4465(c) of the Defense Conversion, 
        Reinvestment, and Transition Assistance Act of 1992.
    ``(3) Amounts appropriated pursuant to paragraph (1) are authorized 
to remain available until expended.''.

SEC. 203. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
the enactment of this Act or October 1, 1993, whichever occurs later.

                                 <all>

HR 2498 IH----2