[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 841 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 841

To establish economic conversion programs in the Department of Defense 
 to assist communities, businesses, and workers adversely affected by 
 reductions in defense contracts and spending and closures of military 
   installations and to provide an additional credit against Federal 
   unemployment tax for States with reemployment assistance programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1993

Mrs. Kennelly introduced the following bill; which was referred jointly 
  to the Committees on Armed Services, Ways and Means, Education and 
  Labor, Banking, Finance and Urban Affairs, and Science, Space, and 
                               Technology

_______________________________________________________________________

                                 A BILL


 
To establish economic conversion programs in the Department of Defense 
 to assist communities, businesses, and workers adversely affected by 
 reductions in defense contracts and spending and closures of military 
   installations and to provide an additional credit against Federal 
   unemployment tax for States with reemployment assistance programs.

    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 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--WORKER AND MILITARY PERSONNEL ASSISTANCE PROGRAMS

Sec. 101. Incentives for the placement of displaced defense workers, 
                            at-risk defense workers, and separated 
                            military personnel.
Sec. 102. Additional credit against Federal unemployment tax for States 
                            with reemployment assistance program.
Sec. 103. Basic skills training and advanced skills retraining 
                            programs.
Sec. 104. Special engineer retraining program.
                 TITLE II--DEFENSE ECONOMIC DEVELOPMENT

Sec. 201. Defense economic development grants.
     TITLE III--NATIONAL TECHNOLOGY AND INDUSTRIAL BASE INITIATIVES

Sec. 301. Alternative technology development and application 
                            partnerships.
Sec. 302. Establishment of environmental and entrepreneurial technology 
                            centers.
Sec. 303. Manufacturing technology surveys.
Sec. 304. Loan guarantees for the conversion and diversification of 
                            defense facilities with a major defense 
                            contract or subcontract.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``defense dependent community'' means a 
        community which, as determined by the Secretary of Defense--
                    (A) has within its administrative and political 
                jurisdiction a defense facility; and
                    (B) suffers a workforce reduction, over a 12-month 
                period, of 250 or more employee positions (including 
                part-time employee positions) and the loss of 10,000 or 
                more work hours per week as a result of the actual or 
                threatened curtailment, completion, elimination, or 
                realignment of a defense contract or program or the 
                realignment or closure of a defense facility.
            (2) The term ``defense dependent area'' means a defense 
        dependent community and the area encompassed within a 50 mile 
        radius of the community.
            (3) The term ``displaced defense worker'' means an 
        employee, including a civilian employee of the Department of 
        Defense, who has been terminated or laid off, or has received a 
        notice of termination or lay off, as a consequence of 
        reductions in expenditures by the United States for defense or 
        the closure of a defense facility, as determined in accordance 
        with regulations issued by the Secretary of Defense.
            (4) The term ``at-risk defense worker'' means an employee 
        of a defense facility at which other employees have been 
        terminated or laid off, or received a notice of termination or 
        lay off, as a consequence of reductions in expenditures by the 
        United States for defense or the closure of the facility.
            (5) The term ``separated member'' means a member of the 
        Armed Forces who is involuntarily separated from active duty, 
        as defined in section 1141 of title 10, United States Code, 
        accepts discharge or release from active duty under section 
        1174a or 1175 of that title, or is given early retirement under 
        section 4403 the National Defense Authorization Act for Fiscal 
        Year 1993 (10 U.S.C. 1293 note).
            (6) The term ``defense facility'' means--
                    (A) a private or government facility producing 
                goods or services for the Department of Defense 
                pursuant to a defense contract or subcontract; or
                    (B) a military installation.
            (7) The term ``Secretary'' means the Secretary of Defense.

       TITLE I--WORKER AND MILITARY PERSONNEL ASSISTANCE PROGRAMS

SEC. 101. INCENTIVES FOR THE PLACEMENT OF DISPLACED DEFENSE WORKERS, 
              AT-RISK DEFENSE WORKERS, AND SEPARATED MILITARY 
              PERSONNEL.

    (a) Placement Program.--The Secretary of Defense shall establish a 
program to assist displaced defense workers, at-risk defense workers, 
and separated members of the Armed Forces to obtain reemployment in 
defense dependent areas.
    (b) Agreements With Employers.--The Secretary shall enter into 
agreements with public or private employers that agree to extend 
employment positions to displaced defense workers, at-risk defense 
workers, and separated members.
    (c) Contents of Agreement.--An agreement between the Secretary and 
an employer under subsection (b) shall include the following terms and 
conditions:
            (1) The Secretary shall agree to pay 25 percent of the 
        first-years wages (not to exceed a total of $5,000 per 
        employee) paid to each displaced defense worker, at-risk 
        defense worker, or separated member employed by the employer 
        during the term of the agreement.
            (2) The employer shall agree--
                    (A) to hire a specified number of displaced defense 
                workers, at-risk defense workers, and separated members 
                during the term of the agreement for a period of 
                employment of at least 180 days at the same wage 
                provided to similarly situated employees of the 
                employer; and
                    (B) to place the displaced defense workers, at-risk 
                defense workers, and separated members in employment 
                positions located in a defense dependent area or to 
                relocate the workers and members outside a defense 
                dependent area.
    (d) Repayment Requirements.--If an employer terminates the 
employment of a displaced defense worker, at-risk defense worker, or 
separated member employed pursuant to an agreement under this section 
before the date specified in subsection (c) (unless such termination is 
for cause), the employer shall reimburse the Secretary for the amount 
provided with respect to the worker or member.
    (e) Certain Agreements Prohibited.--The Secretary may not make a 
payment under this subsection to an employer if the Secretary 
determines that--
            (1) the employer terminated the employment of employee, or 
        failed to rehire a laid off employee, in order to fill the 
        vacancy with a displaced defense worker, at-risk defense 
        worker, or separated member;
            (2) rehires the same worker or member more than once in 
        order to qualify for additional assistance with respect to the 
        worker or member.
    (f) Special Program for Certain Defense Contractors.--(1) In the 
case of a defense facility that has begun or announced the termination 
or lay off of employees before the date of the enactment of this Act as 
a result of the actual or threatened curtailment, completion, 
elimination, or realignment of a defense contract or program, the 
Secretary may implement an incentive program under this subsection to 
assist the facility to rehire the terminated or laid off employees and 
prevent additional terminations or lay offs.
    (2) Under the program, the Secretary shall agree to pay 12.5 
percent of the next-year wages (not to exceed a total of $2,500 per 
employee) paid to each employee of the facility who is rehired or whose 
employment would otherwise be ended in the absence of the assistance, 
as determined by the Secretary.
    (3) In exchange for assistance under this subsection, the defense 
facility shall agree to pay the premium for any continuation coverage 
for health care elected by an employee for whom assistance is provided 
if the employee subsequently becomes qualified for such continuation 
coverage.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $1,400,000,000 for fiscal year 1994 to 
carry out this section. Funds appropriated pursuant to this subsection 
shall be available until expended.

SEC. 102. ADDITIONAL CREDIT AGAINST FEDERAL UNEMPLOYMENT TAX FOR STATES 
              WITH REEMPLOYMENT ASSISTANCE PROGRAM.

    (a) Credit Authorized.--
            (1) In general.--Chapter 23 of the Internal Revenue Code of 
        1986 (relating to Federal unemployment tax) is amended by 
        inserting after section 3302 the following new section:

``SEC. 3302A. ADDITIONAL CREDIT FOR STATES WITH REEMPLOYMENT ASSISTANCE 
              PROGRAMS.

    ``(a) Allowance of Credit.--
            ``(1) In general.--The taxpayer may, to the extent provided 
        in this subsection and subsection (b), credit against the tax 
        imposed by section 3301(a)(2) the amount of contributions paid 
        by him into a reemployment assistance fund maintained during 
        the taxable year under a State law certified by the Secretary 
        of Labor as provided in this section for the 12-month period 
        ending on October 31 of such year.
            ``(2) Certain rules made applicable.--Rules similar to the 
        rules of paragraph (2), (3), (4), and (5) of section 3302(a) 
        shall apply for purposes of this subsection.
    ``(b) Limitation on Total Credits.--The total credits allowed to a 
taxpayer under this section shall not exceed 12 percent of the tax 
against which such credits are allowable.
    ``(c) Approval of State Laws.--The Secretary of Labor shall approve 
any State law submitted to him, within 30 days of such submission, if 
the Secretary finds that--
            ``(1) such law establishes a program under which 
        reemployment assistance is to be provided to eligible workers,
            ``(2) such program is to be funded by requiring additional 
        contributions from employers subject to the State unemployment 
        compensation law, and
            ``(3) such additional contributions shall be deposited in a 
        special fund established under such State law which is to be 
        used solely for purposes of providing reemployment assistance 
        to eligible workers.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Reemployment assistance.--The term `reemployment 
        assistance' means any of the following--
                    ``(A) counseling and testing services,
                    ``(B) intensive job search assistance,
                    ``(C) job search vouchers,
                    ``(D) retraining assistance,
                    ``(E) retraining vouchers,
                    ``(F) job search and relocation allowances,
                    ``(G) self-employment assistance, and
                    ``(H) cash allowances to individuals while 
                participating in training.
            ``(2) Eligible worker.--The term `eligible worker' means 
        any individual receiving compensation under the State law 
        during any benefit year--
                    ``(A) if such individual has received compensation 
                during such benefit year for at least 4 consecutive 
                weeks, and
                    ``(B) if, during the 3-year period ending on the 
                last day for the base period for such benefit year, 
                such individual had at least 126 weeks of employment, 
                at wages of $30 or more a week with such individual's 
                last employer in such base period (or, if data with 
                respect to weeks of employment with such last employer 
                are not available, an equivalent amount of employment 
                computed under regulations prescribed by the 
                Secretary).
            ``(3) Reemployment assistance fund.--The term `reemployment 
        assistance fund' means the special fund referred to in 
        subsection (c)(3).
            ``(4) Contributions.--The term `contributions' has the 
        meaning given such term by section 3306(g); except that the 
        reference to an unemployment fund shall be treated as a 
        reference to a reemployment assistance fund.
    ``(e) Certification Procedures Made Applicable.--The Secretary of 
Labor shall make certifications of State laws under this section under 
rules similar to the rules applicable under section 3304. The 
provisions of section 3310 shall apply to any failure to make a 
certification under this section.''.
            (2) Clerical amendment.--The table of sections for chapter 
        23 of such Code is amended by inserting after the item relating 
        to section 3302 the following new item:

``Sec. 3302A. Additional credit for States with reemployment assistance 
                            programs.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to calendar years after 1993.
    (b) Modifications to Federal Unemployment Tax.--
            (1) Modification.--Section 3301 of the Internal Revenue 
        Code of 1986 (relating to rate of Federal unemployment tax) is 
        amended to read as follows:

``SEC. 3301. RATE OF TAX.

    ``(a) General Rule.--There is hereby imposed on every employer (as 
defined in section 3306(a)) for each calendar year an excise tax, with 
respect to having individuals in his employ, equal to the sum of--
            ``(1) 5.4 percent of the total wages (as defined in section 
        3306(b)) paid by him during the calendar year with respect to 
        employment (as defined in section 3306(c)), and
            ``(2) 0.25 percent of the total Federal taxable wages paid 
        by him during the calendar year with respect to employment (as 
        so defined).
    ``(b) Federal Taxable Wages.--
            ``(1) In general.--For purposes of subsection (a), the term 
        `Federal taxable wages' means wages as defined in section 
        3306(b), except that the average covered wage for the calendar 
        year shall be substituted for `$7,000' each place it appears in 
        paragraph (1) of section 3306(b).
            ``(2) Average covered wage.--For purposes of paragraph (1), 
        the term `average covered wage' means, with respect to any 
        calendar year, the average annual wage in employment covered 
        under State unemployment compensation laws for the most recent 
        calendar year for which data are available before the beginning 
        of the calendar year involved. Determinations under the 
        preceding sentence shall be made by the Secretary of Labor.
    ``(c) Transition Rule.--Paragraph (2) of subsection (a) shall be 
applied with respect to any calendar year after 1993 and before 1997 by 
substituting `0.3 percent' for `0.25 percent'.''.
            (2) Conforming amendments.--(A) Paragraph (1) of section 
        3302(c) of such Code is amended to read as follows:
            ``(1) No credit shall be allowed under this section against 
        the tax imposed by section 3301(a)(2), and the total credits 
        allowed to a taxpayer under this section shall not exceed 100 
        percent of the tax against which such credits are allowable.''.
            (B) Subparagraph (A) of section 3302(c)(2) of such Code is 
        amended--
                    (i) by striking ``5 percent of the tax imposed by 
                section 3301 with respect to the wages'' in clause (i) 
                and inserting ``0.3 percent of the wages''; and
                    (ii) by striking ``an additional 5 percent, for 
                each succeeding taxable year, of the tax imposed by 
                section 3301 with respect to the wages'' in clause (ii) 
                and by inserting ``an additional 0.3 percent, for each 
                succeeding taxable year, of the wages''.
            (C) Paragraph (3) of section 3302(c) of such Code is 
        amended by striking ``7\1/2\ percent of the tax imposed with 
        respect to the wages'' and inserting ``0.45 percent of the 
        wages''.
            (D) Subsection (d) of section 3302 of such Code is amended 
        by striking paragraph (1) and by redesignating the following 
        paragraphs accordingly.
            (3) Installment payment provisions.--Subsection (b) of 
        section 6157 of such Code is amended to read as follows:
    ``(b) Computation of Tax.--The tax for any calendar quarter or 
other period referred to in paragraph (1) or (2) of subsection (a) 
shall be determined without regard to paragraph (1) of section 3301(a) 
and by reducing the amount of the tax under paragraph (2) of section 
3301(a) by the maximum credit allowable under section 3302A.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to remuneration paid after December 31, 1993.

SEC. 103. BASIC SKILLS TRAINING AND ADVANCED SKILLS RETRAINING 
              PROGRAMS.

    (a) Support of Partnerships.--The Secretary of Defense shall 
conduct a program to establish cooperative arrangements (hereinafter in 
this section referred to as ``partnerships'') between the Department of 
Defense and entities described in subsection (c) that the Secretary 
determines have a demonstrable ability to--
            (1) identify the skills needed by displaced defense workers 
        and at-risk defense workers to secure employment in other 
        defense-related fields and nondefense fields;
            (2) develop training programs for, and provide basic and 
        advanced training to, displaced defense workers and at-risk 
        defense workers in these skills; and
            (3) assist displaced defense workers and at-risk defense 
        workers who successfully complete such training to secure new 
        employment.
    (b) Types and Amount of Assistance.--The Secretary of Defense may 
make grants, enter into contracts, or enter into cooperative agreements 
and other transactions pursuant to section 2371 of title 10, United 
States Code, in order to establish and assist the partnerships. The 
Secretary shall ensure that, to the maximum extent practicable, the 
amount of the funds provided by the Federal Government under a 
partnership does not exceed the total amount provided by non-Federal 
Government participants in that partnership.
    (c) Eligible Participants.--The principal participant in a 
partnership shall be an institution of higher education with a campus 
located in or within 20 miles of a defense dependent area or a regional 
economic development alliance operating in a defense dependent area. 
Other participants cooperating in a partnership may include a Federal 
laboratory or laboratories, Government-owned and operated industrial 
facilities, defense contractors, other institutions of higher 
education, nonprofit organizations, and agencies of State governments. 
Those partnerships that demonstrate multi-disciplinary approaches to 
training and regional collaboration of local efforts to deliver 
comprehensive services to displaced defense workers and at-risk defense 
workers shall be given priority in receiving assistance.
    (d) Types of Training.--Basic skills training provided to displaced 
defense workers and at-risk defense workers by a partnership receiving 
assistance under this section may include reentry student programs on 
studying and computer skills to prepare workers for higher education 
courses and part time and weekend associate and baccalaureate degree 
programs specially developed for displaced defense workers and at-risk 
defense workers. Advanced skills training should be targeted at 
projected employment growth areas, such as environmental engineering, 
biotechnology and marine biotechnology, and advanced materials.
    (e) Location of Training.--A partnership receiving assistance under 
this section must be able to provide training both at defense 
facilities and at other sites located within a defense dependent area.
    (f) Selection of Workers.--The application submitted to the 
Secretary of Defense by a proposed partnership shall include 
information on the method by which displaced defense workers and at-
risk defense workers will be selected to participate in training 
provided by the partnership. A worker selected to receive advanced 
training may not be charged for such training.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Defense $400,000,000 for fiscal year 
1994 to carry out this section. Funds appropriated pursuant to this 
subsection shall be available until expended.

SEC. 104. ENGINEER RETRAINING PROGRAM.

    (a) Establishment of Program.--(1) The Secretary of Defense shall 
establish a program under which the Secretary makes grants to eligible 
entities--
            (A) to provide retraining services to individuals described 
        in paragraph (2) for the purpose of enabling such individuals 
        to obtain employment in the field of environmental engineering; 
        and
            (B) to provide fellowship assistance to such individuals 
        while they are receiving retraining described in subparagraph 
        (A).
    (2) The individuals referred to in paragraph (1) are individuals--
            (A) who are displaced defense workers, at-risk defense 
        workers, or separated members of the Armed Forces; and
            (B) who have experience in the field of engineering.
    (b) Eligible Entities.--A grant under this section may be made only 
to a Tier I Public Research University with facilities located within a 
defense dependent area.
    (c) Selection Criteria.--The Secretary of Defense may select a 
proposal submitted by a Tier I Public Research University for a grant 
under this section if the proposal--
            (1) provides for the establishment of a program to provide 
        training in the field of environmental engineering for 
        individuals described in subsection (a);
            (2) establishes a competitive fellowship assistance program 
        under which the eligible entity shall award fellowships to 20 
        such individuals who are participating in the retraining 
        program;
            (3) gives preference for participation in the program to 
        such individuals who are more than 45 years of age without 
        regard to whether such individuals have obtained a college 
        degree, or its equivalency, in the field of engineering; and
            (4) satisfies such other criteria as the Secretary 
        considers to be appropriate.
    (d) Selection by Secretary.--Applications for grants under this 
section shall be evaluated and selected on the basis of merit pursuant 
to competitive procedures prescribed by the Secretary of Defense.
    (e) Limitation.--Not more than $2,000,000 of the total amounts 
awarded to a Tier I Public Research University in grants under this 
section may be used by the entity for start-up costs associated with 
establishing the retraining program, including any costs associated 
with the construction or renovation of physical facilities.
    (f) Eligibility for Other Assistance.--This section may not be 
construed to preclude the eligibility of individuals described in 
subsection (a) from participation in any other assistance program 
established in this title.
    (g) Definition.--For purposes of this section, the term ``Tier I 
Public Research University'' means an institution of higher education 
that the Secretary of Defense determines--
            (1) offers a full range of baccalaureate programs;
            (2) is committed to graduate education through a doctorate 
        degree program that awards at least 50 advanced degrees a year;
            (3) gives a high priority to research; and
            (4) receives at least $33,500,000 a year in Federal 
        funding.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Defense $100,000,000 for fiscal year 
1994 to carry out this section. Funds appropriated pursuant to this 
subsection shall be available until expended.

                 TITLE II--DEFENSE ECONOMIC DEVELOPMENT

SEC. 201. DEFENSE ECONOMIC DEVELOPMENT GRANTS.

    (a) Grants Authorized.--The Secretary of Defense shall make grants 
to communities, including defense dependent communities, located in 
defense dependent areas to assist these communities in the economic 
transition necessary as a result of reductions in expenditures by the 
United States for defense or the closure of defense facilities.
    (b) Preference Given to Certain Communities.--In reviewing 
applications for grants under subsection (a), the Secretary shall give 
preference to applications from communities--
            (1) that submit as part of the application a comprehensive 
        plan for the economic redevelopment and conversion of the 
        community from dependence on defense-based activities to 
        nondefense-related activities;
            (2) that propose to use the grant funds to create export-
        related or manufacturing jobs; and
            (3) that the largest number of displaced defense workers as 
        a percentage of all workers residing or employed in the 
        community.
    (c) Certain Preferences Prohibited.--In making grants under this 
section, the Secretary may not give a preference to a community 
adversely affected by the closure of the military installation over a 
similarly situated community that has suffered economic distress as a 
result of the curtailment, completion, elimination, or realignment of a 
defense contract.
    (d) Anti-Robbery Rule.--The Secretary of Defense shall take such 
steps as may be necessary to ensure that a community receiving a grant 
under this section does not use such grant to assist in the relocation 
of an existing business, or existing employment positions with that 
business, to that community from another community
    (e) Use of Funds.--A community receiving a grant under this section 
may use the grant funds for the following activities:
            (1) The acquisition of real property (including air rights, 
        water rights, and other interests therein) which is--
                    (A) blighted, deteriorated, deteriorating, 
                undeveloped, or inappropriately developed from the 
                standpoint of sound community development and growth;
                    (B) appropriate for rehabilitation or conservation 
                activities;
                    (C) appropriate for the preservation or restoration 
                of historic sites, the beautification of urban land, 
                the conservation of open spaces, natural resources, and 
                scenic areas, the provision of recreational 
                opportunities, or the guidance of urban development;
                    (D) to be used for the provision of public works, 
                facilities, and improvements eligible for assistance 
                under this title; or
                    (E) to be used for other public purposes.
            (2) The acquisition, construction, reconstruction, or 
        installation (including design features and improvements with 
        respect to such construction, reconstruction, or installation 
        that promote energy efficiency) of public works, facilities 
        (except for buildings for the general conduct of government), 
        and site or other improvements.
            (3) Code enforcement in deteriorated or deteriorating areas 
        in which such enforcement, together with public improvements 
        and services to be provided, may be expected to arrest the 
        decline of the area.
            (4) Clearance, demolition, removal, and rehabilitation 
        (including rehabilitation which promotes energy efficiency) of 
        buildings and improvements (including interim assistance, and 
        financing public or private acquisition of privately owned 
        properties for rehabilitation and the rehabilitation of such 
        properties, and including the renovation of closed school 
        buildings).
            (5) Special projects directed to the removal of material 
        and architectural barriers which restrict the mobility and 
        accessibility of elderly and handicapped persons.
            (6) Payments to housing owners for losses of rental income 
        incurred in holding for temporary periods housing units to be 
        utilized for the relocation of individuals and families 
        displaced by activities conducted these using grant funds.
            (7) Disposition (through sale, lease, donation, or 
        otherwise) of any real property acquired using grant funds or 
        its retention for public purposes.
            (8) Provision of public services, including those concerned 
        with employment, crime prevention, child care, health, drug 
        abuse, education, energy conservation, welfare or recreation 
        needs, if such services have not been provided by the unit of 
        general local government (through funds raised by such unit, or 
        received by such unit from the State in which it is located) 
        during any part of the twelve-month period immediately 
        preceding the date of the grant under this section. However, 
        not more that 15 percent of the amount of the grant may be used 
        for activities under this paragraph.
            (9) Payment of the non-Federal share required in connection 
        with a Federal grant-in-aid program undertaken as part of the 
        activities authorized under this subsection.
            (10) Payment of the cost of completing a project funded 
        under title I of the Housing and Community Development Act of 
        1974.
            (11) Relocation payments and assistance for displaced 
        individuals, families, businesses, organizations, and farm 
        operations, when determined by the grantee to be appropriate.
            (12) Activities necessary to develop a comprehensive 
        community development plan and to develop a policy-planning-
        management capacity so that the recipient of assistance under 
        this section may more rationally and effectively--
                    (A) determine its needs;
                    (B) set long-term goals and short-term objectives;
                    (C) devise programs and activities to meet these 
                goals and objectives;
                    (D) evaluate the progress of such programs in 
                accomplishing these goals and objectives; and
                    (E) carry out management, coordination, and 
                monitoring of activities necessary for effective 
                planning implementation.
            (13) Payment of reasonable administrative costs and 
        carrying charges related to the planning and execution of 
        community development and housing activities, including the 
        provision of information and resources to residents of areas in 
        which community development and housing activities are to be 
        concentrated with respect to the planning and execution of such 
        activities.
            (14) Activities which are carried out by public or private 
        nonprofit entities, including--
                    (A) acquisition of real property;
                    (B) acquisition, construction, reconstruction, 
                rehabilitation, or installation of (i) public 
                facilities (except for buildings for the general 
                conduct of government), site improvements, and 
                utilities, and (ii) commercial or industrial buildings 
                or structures and other commercial or industrial real 
                property improvements; and
                    (C) planning.
            (15) Assistance to neighborhood-based nonprofit 
        organizations, local development corporations, or entities 
        organized under section 301(d) of the Small Business Investment 
        Act of 1958 to carry out a neighborhood revitalization or 
        community economic development or energy conservative project, 
        and assistance to neighborhood-based nonprofit organizations, 
        or other private or public nonprofit organizations, for the 
        purpose of assisting, as part of neighborhood revitalization or 
        other community development, the development of shared housing 
        opportunities (other than by construction of new facilities) in 
        which elderly families (as defined in section 3(b)(3) of the 
        United States Housing Act of 1937) benefit as a result of 
        living in a dwelling in which the facilities are shared with 
        others in a manner that effectively and efficiently meets the 
        housing needs of the residents and thereby reduces their cost 
        of housing.
            (16) Activities necessary to the development of energy use 
        strategies related to a recipient's development goals, to 
        assure that those goals are achieved with maximum energy 
        efficiency, including items such as--
                    (A) an analysis of the manner in, and the extent 
                to, which energy conservation objectives will be 
                integrated into local government operations, purchasing 
                and service delivery, capital improvements, budgeting, 
                waste management, district heating and cooling, land 
                use planning and zoning, and traffic control, parking, 
                and public transportation functions; and
                    (B) a statement of the actions the recipient will 
                take to foster energy conservation and the use of 
                renewable energy resources in the private sector, 
                including the enactment and enforcement of local codes 
                and ordinances to encourage or mandate energy 
                conservation or use of renewable energy resources, 
                financial and other assistance to be provided 
                (principally for the benefit of low- and moderate-
                income persons) to make energy conserving improvements 
                to residential structures and any other proposed energy 
                conservation activities.
            (17) Provision of assistance to private, for-profit 
        entities, when the assistance is appropriate to carry out an 
        economic development project (that shall minimize, to the 
        extent practicable, displacement of existing businesses and 
        jobs in neighborhoods) that--
                    (A) creates or retains jobs for low- and moderate-
                income persons;
                    (B) prevents or eliminates slums and blight;
                    (C) meets urgent needs;
                    (D) creates or retains businesses owned by 
                community residents;
                    (E) assists businesses that provide goods or 
                services needed by, and affordable to, low- and 
                moderate-income residents; or
                    (F) provides technical assistance to promote any of 
                the activities under subparagraphs (A) through (E).
            (18) Rehabilitation or development of housing assisted 
        under section 17 of the United States Housing Act of 1937.
            (19) Provision of assistance to facilitate substantial 
        reconstruction of housing owned and occupied by low and 
        moderate income persons
                    (A) where the need for the reconstruction was not 
                determinable until after rehabilitation under this 
                section had already commenced; or
                    (B) where the reconstruction is part of a 
                neighborhood rehabilitation effort and the grantee (i) 
                determines the housing is not suitable for 
                rehabilitation, and (ii) demonstrates to the 
                satisfaction of the Secretary that the cost of 
                substantial reconstruction is significantly less than 
                the cost of new construction and less than the fair 
                market value of the property after substantial 
                reconstruction.
            (20) Provision of direct assistance to facilitate and 
        expand homeownership among persons of low and moderate income 
        (except that such assistance shall not be considered a public 
        service for purposes of paragraph (8)) by using such assistance 
        to--
                    (A) subsidize interest rates and mortgage principal 
                amounts for low- and moderate-income homebuyers;
                    (B) finance the acquisition by low- and moderate-
                income homebuyers of housing that is occupied by the 
                homebuyers;
                    (C) acquire guarantees for mortgage financing 
                obtained by low- and moderate-income homebuyers from 
                private lenders (except that amounts received under 
                this title may not be used under this subparagraph to 
                directly guarantee such mortgage financing and grantees 
                under this title may not directly provide such 
                guarantees);
                    (D) provide up to 50 percent of any downpayment 
                required from low- or moderate-income homebuyers; or
                    (E) pay reasonable closing costs (normally 
                associated with the purchase of a home) incurred by 
                low- or moderate-income homebuyers.
    (f) Administrative Assistance.--Upon the request of the recipient 
of a grant under this section, the Secretary may agree to perform 
administrative services on a reimbursable basis on behalf of such 
recipient in connection with the use of the grant.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $1,000,000,000 for fiscal year 1994 to 
carry out this section. Funds appropriated pursuant to this subsection 
shall be available until expended.

     TITLE III--NATIONAL TECHNOLOGY AND INDUSTRIAL BASE INITIATIVES

SEC. 301. ALTERNATIVE TECHNOLOGY DEVELOPMENT AND APPLICATION 
              PARTNERSHIPS.

    (a) Support of Partnerships.--(1) Subchapter III of chapter 148 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 2519. Alternative technology development and application 
              partnerships
    ``(a) Support of Partnerships.--The Secretary of Defense shall 
conduct a program to provide assistance for the establishment or 
continuation of cooperative arrangements (hereinafter in this section 
referred to as `partnerships') between institutions of higher education 
described in subsection (d) and agencies of State governments and other 
entities referred to in section 2511(b) of this title in order to 
enhance existing programs of alternative technology development and 
application, and the establishment of new programs in alternative 
technology development and application, with respect to--
            ``(1) pollution prevention and coastal environmental 
        restoration, including robotics application to defense 
        environmental restoration activities;
            ``(2) biotechnology, including marine biotechnology, and 
        biomanufacturing;
            ``(3) advanced materials;
            ``(4) nanoprecision and microprecision technologies;
            ``(5) generation and transmission of laser light; and
            ``(6) machine tool design.
    ``(b) Types and Amount of Assistance.--The Secretary of Defense may 
make grants, enter into contracts, or enter into cooperative agreements 
and other transactions pursuant to section 2371 of this title in order 
to assist the partnerships. The Secretary shall ensure that, to the 
maximum extent practicable, the amount of the funds provided by the 
Federal Government under a partnership does not exceed the total amount 
provided by non-Federal Government participants in that partnership.
    ``(c) Use of Assistance.--A partnership receiving assistance under 
this section may use the assistance--
            ``(1) to support research, development, and application of 
        alternative technologies referred to in subsection (a); and
            ``(2) to construct and operate facilities in or adjacent to 
        university research facilities in order to maintain favorable 
        conditions for research, development, and application of 
        alternative technologies referred to in subsection (a).
    ``(d) Eligible Institutions of Higher Education.--Assistance under 
this section may be provided only to institutions of higher education 
with research facilities located in or within 50 miles of a community 
which has within its administrative and political jurisdiction a 
defense contractor or military installation for which the Secretary of 
Defense determines that the actual or threatened curtailment, 
completion, elimination, or realignment of a defense contract or 
program or the realignment or closure of the installation or a facility 
of the contractor results, or is likely to result, in a workforce 
reduction, over a 12-month period, of 250 or more employee positions 
(including part-time employee positions) and the loss of 10,000 or more 
work hours per week.
    ``(e) Priority for Certain Assistance.--In providing assistance 
under this section, the Secretary shall give a preference to an 
institution of higher education with an established record of 
conducting research regarding alternative technologies referred to in 
subsection (a), particularly as part of a State comprehensive economic 
development and conversion plan. The Secretary may also give a 
preference to alternative technology development and application 
programs involving dual-use critical technology and partnerships and 
partnership proposals involving defense contractors.
    ``(f) Merit Competition.--Applications for assistance under this 
section shall be evaluated on the basis of merit pursuant to 
competitive procedures prescribed by the Secretary of Defense. The 
Secretary may select a partnership to receive assistance if the 
proposal, at a minimum, satisfies each of the following:
            ``(1) Contains innovative approaches for the development or 
        application of alternative technology.
            ``(2) Demonstrates a strong commitment by the proponents to 
        apply the resources necessary to achieve the objectives for 
        which the assistance is to be made.
            ``(3) Provides for the conduct of research that supports 
        the proposed program and is likely to improve manufacturing 
        technology.
            ``(4) Demonstrates a significant level of involvement of 
        eligible firms in the proposed research activities.
            ``(5) Is likely to attract superior students.
            ``(6) Proposes to involve fully qualified faculty personnel 
        who are experienced in research and education in areas 
        associated with manufacturing engineering and technology.
            ``(7) Proposes to achieve a significant level of 
        participation by women, members of minority groups, and 
        individuals with disabilities through active recruitment of 
        students from among such persons.
            ``(8) Includes employees who have been terminated or laid 
        off, or have received a notice of termination or lay off, as a 
        consequence of reductions in expenditures by the United States 
        for defense or the closure of a defense facility, as determined 
        in accordance with regulations issued by the Secretary of 
        Defense.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``2519. Alternative technology development and application 
                            partnerships.''.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Defense $500,000,000 for fiscal year 
1994 to carry out section 2519 of title 10, United States Code, as 
added by subsection (a). Funds appropriated pursuant to this subsection 
shall be available until expended.

SEC. 302. ESTABLISHMENT OF ENVIRONMENTAL AND ENTREPRENEURIAL TECHNOLOGY 
              CENTERS.

    (a) Support of Centers.--(1) Subchapter III of chapter 148 of title 
10, United States Code, is amended by adding after section 2519, as 
added by section 301, the following new section:
``Sec. 2520. Environmental and entrepreneurial technology centers
    ``(a) Grants To Establish Centers.--The Secretary of Defense shall 
make grants to institutions of higher education in defense dependent 
areas to assist in the establishment or operation of environmental and 
entrepreneurial technology centers that would focus on the transfer of 
technology and human resources from defense-related industries into 
growth sectors of the environmental field. The grants shall be awarded 
on a competitive basis.
    ``(b) Eligible Institutions of Higher Education.--In order to 
qualify for a grant under this section, an institution of higher 
education must demonstrate appropriate environmental research 
capabilities and resources, as well as proven interaction with defense-
related industries, as determined by the Secretary of Defense. The 
institution of higher education must also offer graduate programs of 
coursework in environmental science and engineering and must integrate 
these programs into research efforts of the proposed centers in order 
to provide students with the practical experience in the activities 
specified in subsection (c). In selecting grant recipients, the 
Secretary shall give priority to institutions of higher education with 
a proven interaction with the Environmental Protection Agency.
    ``(c) Eligible Activities.--A proposed center should include at 
least four of the following activities as the primary focus of the 
center, and must be able to demonstrate expertise in these areas:
            ``(1) Pollution prevention.
            ``(2) Site remediation.
            ``(3) Environmental systems modeling.
            ``(4) Industrial waste treatment.
            ``(5) Chemical demilitarization.
            ``(6) Analytical environmental chemistry.
    ``(d) Technology Transfer and Training.--Technology transfer and 
training must be integrated into all activities of a center receiving a 
grant under this section.
    ``(e) Number and Amount of Grants.--In order for this grant program 
to be as effective as possible, a stable funding base is necessary for 
new centers. To provide such a base, the Secretary of Defense shall 
award only 10 grants under this section in fiscal year 1994. In fiscal 
years 1995 and 1996, the Secretary shall give these 10 grantees 
priority for additional grants if the Secretary determines the these 
grantees have properly and successfully used previous grants. The 
Secretary shall award 15 grants under this section in fiscal year 1995 
and 20 grants under this section in fiscal year 1996. A grant under 
this section may not exceed $3,000,000.
    ``(f) Definitions.--In this section:
            ``(1) The term `center' means an environmental and 
        entrepreneurial technology center assisted or proposed to be 
        assisted under this section.
            ``(2) The term `defense dependent area' has the meaning 
        given that term in section 3(2) of the Defense Economic 
        Reinvestment Act of 1993.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding after the item relating to section 2519, as added by 
section 301, the following new item:

``2520. Environmental and entrepreneurial technology centers.''.
    (b) Authorization of Appropriations.--(1) There is authorized to be 
appropriated to the Secretary of Defense to carry out section 2520 of 
title 10, United States Code, as added by subsection (a)--
            (A) $25,000,000 for fiscal year 1994;
            (B) $32,000,000 for fiscal year 1995;
            (C) $40,000,000 for fiscal year 1996.
    (2) Funds appropriated pursuant to this subsection shall be 
available until expended.

SEC. 303. MANUFACTURING TECHNOLOGY SURVEYS.

    (a) Grants for Surveys.--(1) Subchapter I of Chapter 148 of title 
10, United States Code, is amended by adding at the end the following 
new section:
``Sec. 2508. State manufacturing technology surveys
    ``(a) Grants to Conduct Surveys.--The National Defense Technology 
and Industrial Base Council shall make a grant to each State to carry 
out a survey of eligible firms engaged in manufacturing activities in 
the State. The survey shall include an inventory of manufacturing 
equipment, processes, and technologies used in the State and such other 
information as may be necessary to determine the manufacturing 
technology capabilities of the industrial base in the State.
    ``(b) Application.--The Council shall not accept the proposal of a 
State to conduct a survey under subsection (a) unless the application 
contains assurances that the State will use institutions of higher 
education and nonprofit industrial manufacturers associations in the 
preparation and execution of the survey.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2508. State manufacturing technology surveys.''.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Defense $50,000,000 for fiscal year 
1994 for grants under section 2508 of title 10, United States Code, as 
added by subsection (a). Funds appropriated pursuant to this subsection 
shall be available until expended.

SEC. 304. LOAN GUARANTEES FOR THE CONVERSION AND DIVERSIFICATION OF 
              DEFENSE FACILITIES WITH A MAJOR DEFENSE CONTRACT OR 
              SUBCONTRACT.

    (a) Program Required.--The Secretary of the Treasury shall 
establish a loan guarantee program to assist a defense facility holding 
a major defense contract or subcontract to finance one or more of the 
following economic development projects:
            (1) Conversion of defense-related production facilities or 
        equipment of the small business concern to nondefense-related 
        use.
            (2) Diversification of the operations of the small business 
        concern toward greater emphasis on production or services for 
        the civilian sector of the economy.
            (3) Training employees of the small business concern as 
        part of a conversion or diversification process.
    (b) Determinations for Guarantees.--On such terms and conditions as 
the Secretary considers appropriate, the Secretary may make commitments 
to guarantee the payment of principal and interest on loans to a 
defense facility under subsection (a) only if at the time the 
commitment is issued the Secretary determines that--
            (1) the commitment is needed to enable the defense facility 
        to convert or diversify to nondefense-related activities, and 
        failure to meet such need would adversely and seriously affect 
        the economy of, or employment in, the United States or any 
        region thereof;
            (2) the defense facility has submitted to the Secretary a 
        satisfactory operating plan (including budget and cash flow 
        projections) for the next four-year period demonstrating the 
        ability of the defense facility to continue operations as a 
        going concern as a result of the conversion or diversification, 
        and after that period, to continue such operations as a going 
        concern without additional guarantees or other Federal 
        financing; and
            (3) the Secretary has received such assurances as the 
        Secretary may require that the operating plan is realistic and 
        feasible.
    (c) Requirements for Loan Guarantees.--A loan guarantee may be 
issued under this section only pursuant to a commitment issued under 
subsection (b). The terms of any such commitment shall provide that a 
loan guarantee may be issued under this section only if at the time the 
loan guarantee is issued, the Secretary determines that--
            (1) credit is not otherwise available to the defense 
        facility under reasonable terms or conditions sufficient to 
        meet its financing needs as reflected in its conversion or 
        diversification plan;
            (2) the prospective earning power of the defense facility, 
        together with the character and value of the security pledged, 
        furnish reasonable assurance of repayment of the loan to be 
        guaranteed in accordance with its terms;
            (3) the loan to be guaranteed bears interest at a rate 
        determined by the Secretary to be reasonable taking into 
        account the current average yield on outstanding obligations of 
        the United States with remaining periods to maturity comparable 
        to the maturity of such loan; and
            (4) the operating plan of the defense facility continues to 
        meet the requirements of subsection (b).
    (d) Determinations Conclusive.--Any determination by the Secretary 
that the conditions established by this section have been met shall be 
conclusive, and such determination shall be evidenced by the issuance 
of the guarantee or commitment for which such determination is 
required.
    (e) Limitations on Guarantee Authority.--The authority of the 
Secretary to extend loan guarantees under this section shall not at any 
time exceed $6,000,000,000 in the aggregate principal amount 
outstanding.
    (f) Definitions.--For purposes of this section:
            (1) The term ``defense facility'' does not include a 
        military installation.
            (2) The term ``major defense contract or subcontract'' 
        means--
                    (A) defense contracts in a total amount of not less 
                than $5,000,000 (without regard to the date on which 
                the contracts were awarded); or
                    (B) subcontracts in a total amount of not less than 
                $500,000 entered into in connection with a defense 
                contract (without regard to the effective dates of the 
                subcontracts).

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