I

103D CONGRESS

1ST SESSION H. R. 1269

To establish a comprehensive recovery program for communities, businesses,

and workers adversely affected by the closure or realignment of military

installations.

IN THE HOUSE OF REPRESENTATIVES

MARCH 9, 1993

Ms. SNOWE introduced the following bill; which was referred jointly to the

Committees on Armed Services, Energy and Commerce, Ways and

Means, Government Operations, Education and Labor, Banking, Finance

and Urban Affairs, and Public Works and Transportation

A BILL

To establish a comprehensive recovery program for communities, businesses, and workers adversely affected by the

closure or realignment of military installations.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Comprehensive Base Closure Reform and Recovery Act

6 of 1993’’.

7 (b) TABLE OF CONTENTS.—The table of contents for

8 this Act is as follows:
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Sec. 1. Short title and table of contents.

TITLE I—ENVIRONMENTAL RESTORATION AT CERTAIN MILITARY

INSTALLATIONS TO BE CLOSED

Sec. 101. Cleanup schedule for certain bases on Superfund National Priorities

List.

TITLE II—TAX INCENTIVES RELATING TO FEDERAL MILITARY

BASE CLOSURES AND REALIGNMENTS

Sec. 201. Amendment of 1986 code.

Sec. 202. Hiring and investment incentives.

Sec. 203. Treatment of amounts paid on account of military base closings.

TITLE III—ECONOMIC ADJUSTMENT AND CONVERSION

ASSISTANCE

Sec. 301. Authorization of appropriations for community economic adjustment

assistance and emphasis on providing such assistance to the

most seriously affected communities.

Sec. 302. Loan guaranty program.

Sec. 303. Increase in average amount of economic planning grants provided by

the Office of Economic Adjustment.

Sec. 304. Adjustment assistance for employees.

Sec. 305. Conveyance of closed bases to neighboring communities.

Sec. 306. Preference for local and small businesses.

Sec. 307. Expansion of homeowners assistance program to include employees of

local educational agencies adversely affected by base closures.

1 TITLE I—ENVIRONMENTAL RES2 TORATION AT MILITARY IN3 STALLATIONS TO BE CLOSED

4 SEC. 101. CLEANUP SCHEDULE FOR CERTAIN BASES ON

5 SUPERFUND NATIONAL PRIORITIES LIST.

6 (a) CLEANUP SCHEDULE FOR CERTAIN BASES ON

7 NATIONAL PRIORITIES LIST.—(1) Before a military in8 stallation described in subsection (c) is closed or substan9 tial reductions in its operations have occurred, at least 75

10 percent of the remedial action required on the installation

11 pursuant to the Comprehensive Environmental Response,
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1 Compensation, and Liability Act of 1980 (42 U.S.C. 9601

2 et seq.) shall be completed.

3 (2) Not later than two years after a military installa4 tion described in subsection (c) is closed or substantial re5 ductions in its operations have occurred, all of the reme6 dial action required on the installation pursuant to such

7 Act shall be completed.

8 (b) MEANING OF SUBSTANTIAL REDUCTIONS.—For

9 purposes of subsection (a), substantial reductions in the

10 operations of a military installation shall be considered to

11 have occurred if more than 50 percent of the personnel

12 assigned to the installation, including employees and mem13 bers of the Armed Forces, have been reassigned and

14 moved to another installation.

15 (c) APPLICABILITY.—This section applies to each

16 military installation—

17 (1) which is on the National Priorities List

18 under the Comprehensive Environmental Response,

19 Compensation, and Liability Act of 1980 (42 U.S.C.

20 9601 et seq.); and

21 (2) which is to be closed pursuant to title II of

22 the Defense Authorization Amendments and Base

23 Closure and Realignment Act (Public Law 100–526;

24 10 U.S.C. 2687 note), pursuant to the Defense Base

25 Closure and Realignment Act of 1990 (part A of
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1 title XXIX of Public Law 101–510; 10 U.S.C. 2687

2 note), or otherwise by the Department of Defense.

3 (d) DEFINITION.—For purposes of this section, the

4 term ‘‘remedial action’’ has the meaning given that term

5 by section 101 of the Comprehensive Environmental Re6 sponse, Compensation, and Liability Act of 1980 (42

7 U.S.C. 9601 et seq.).

8 TITLE II—TAX INCENTIVES RE9 LATING TO FEDERAL MILI10 TARY BASE CLOSURES AND

11 REALIGNMENTS

12 SEC. 201. AMENDMENT OF 1986 CODE.

13 Except as otherwise expressly provided, whenever in

14 this title an amendment or repeal is expressed in terms

15 of an amendment to or repeal of a section or other provi16 sion, such amendment or repeal shall be treated as made

17 to a section or other provision of the Internal Revenue

18 Code of 1986.

19 SEC. 202. HIRING AND INVESTMENT INCENTIVES.

20 (a) IN GENERAL.—Chapter 1 (relating to normal tax

21 and surtax rules) is amended by inserting after subchapter

22 T the following new subchapter:

23 ‘‘Subchapter U—Tax Incentives Relating to

24 Closed Federal Military Installations

‘‘Part I. Definitions.

‘‘Part II. Hiring incentives.

‘‘Part III. Investment incentives.
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1 ‘‘PART I—DEFINITIONS

‘‘Sec. 1391. Definitions.

2 ‘‘SEC. 1391. DEFINITIONS.

3 ‘‘(a) APPLICABLE FEDERAL MILITARY INSTALLA4 TION.—For purposes of this subchapter, the term ‘appli5 cable Federal military installation’ means a Federal mili6 tary installation or other facility which is closed or re7 aligned under—

8 ‘‘(1) the Defense Base Closure and Realign9 ment Act of 1990 (10 U.S.C. 2687 note),

10 ‘‘(2) title II of the Defense Authorization

11 Amendments and Base Closure and Realignment

12 Act (10 U.S.C. 2687 note), or

13 ‘‘(3) section 2687 of title 10, United States

14 Code.

15 ‘‘(b) TERMINATED EMPLOYEE.—For purposes of this

16 subchapter—

17 ‘‘(1) IN GENERAL.—The term ‘terminated em18 ployee’ means an individual who is certified, under

19 procedures similar to the procedures described in

20 section 51(d)(16), as being an individual (whether or

21 not a Federal employee)—

22 ‘‘(A) who was employed on an applicable

23 Federal military installation, and
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1 ‘‘(B) whose job was terminated by reason

2 of the closing or realignment of such installa3 tion.

4 ‘‘(2) LIMITATION.—An individual shall not be

5 treated as a terminated employee with respect to any

6 job termination after the later of—

7 ‘‘(A) the close of the 2nd calendar year fol8 lowing the calendar year in which the an9 nouncement of the job termination occurs, or

10 ‘‘(B) the close of the 1-year period begin11 ning with the date on which the employee first

12 begins work for any employer after the job

13 termination.

14 ‘‘PART II—HIRING INCENTIVES

‘‘Sec. 1392. Targeted jobs credit.

15 ‘‘SEC. 1392. TARGETED JOBS CREDIT.

16 ‘‘For purposes of section 38, a terminated employee

17 shall be treated as a member of a targeted group for pur18 poses of determining the targeted jobs credit under section

19 51.

20 ‘‘PART III—INVESTMENT INCENTIVES

‘‘Sec. 1393. Capital incentives.
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1 ‘‘SEC. 1393. CAPITAL INCENTIVES.

2 ‘‘(a) REDUCTION IN RECOVERY PERIOD FOR

3 NONRESIDENTIAL REAL AND RESIDENTIAL RENTAL

4 PROPERTY.—

5 ‘‘(1) IN GENERAL.—For purposes of section

6 168, the applicable recovery period—

7 ‘‘(A) for any qualified nonresidential real

8 property shall be 21.5 years, and

9 ‘‘(B) for any qualified residential rental

10 property shall be 17.5 years.

11 ‘‘(2) QUALIFIED PROPERTY.—For purposes of

12 paragraph (1), the term ‘qualified nonresidential

13 real property’ or ‘qualified residential rental prop14 erty’ means nonresidential real property (as defined

15 in section 168(e)(2)(B)) or residential rental prop16 erty (as defined in section 168(e)(2)(A)), whichever

17 is applicable, which—

18 ‘‘(A) is located on an applicable Federal

19 military installation,

20 ‘‘(B) is used by the taxpayer predomi21 nantly in the active conduct of a trade or busi22 ness on such installation, and

23 ‘‘(C) is placed in service by the taxpayer

24 during the 15-year period beginning on the date

25 of the announcement of the closure or realign26 ment of such installation.
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1 ‘‘(b) INCREASE IN AMOUNT WHICH MAY BE EX2 PENSED.—

3 ‘‘(1) IN GENERAL.—In the case of qualified sec4 tion 179 property—

5 ‘‘(A) the limitation under subsection (b)(1)

6 of section 179 with respect to such property

7 shall be equal to the amount determined under

8 paragraph (2), and

9 ‘‘(B) subsection (b)(2) of section 179 shall

10 not apply with respect to such property.

11 ‘‘(2) AMOUNT WHICH MAY BE EXPENSED.—For

12 purposes of paragraph (1)(A), the amount under

13 this paragraph shall be equal to the excess (if any)

14 of—

15 ‘‘(A) the lesser of—

16 ‘‘(i) 25 percent of the cost of the

17 qualified section 179 property (or, if great18 er, $10,000), or

19 ‘‘(ii) $200,000, over

20 ‘‘(B) the cost of section 179 property for

21 the taxable year which is not qualified section

22 179 property.

23 ‘‘(3) QUALIFIED PROPERTY.—For purposes of

24 this subsection—
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1 ‘‘(A) IN GENERAL.—The term ‘qualified

2 section 179 property’ means section 179 prop3 erty which is used by the taxpayer predomi4 nantly in the active conduct of a trade or busi5 ness on an applicable Federal military installa6 tion.

7 ‘‘(B) EXCEPTIONS.—The term ‘qualified

8 section 179 property’ does not include—

9 ‘‘(i) property which is used or located

10 outside of an applicable Federal military

11 installation on any regular basis, or

12 ‘‘(ii) property the original use of

13 which commences with the taxpayer after

14 the close of the 15-year period beginning

15 on the date of the announcement of the

16 closing or realignment of such installation.

17 ‘‘(C) OTHER TERMS.—The terms ‘cost’

18 and ‘section 179 property’ have the meanings

19 given such terms by section 179.

20 ‘‘(c) RELATED PARTIES.—

21 ‘‘(1) IN GENERAL.—No property shall be treat22 ed as qualified nonresidential real property, qualified

23 residential rental property, or qualified section 179

24 property if it is acquired (directly or indirectly) by
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1 the taxpayer from a person who is related to the tax2 payer as of the time of the acquisition.

3 ‘‘(2) RELATED PERSON.—For purposes of para4 graph (1), a person (hereafter in this subparagraph

5 referred to as the ‘related person’) is related to any

6 other person if—

7 ‘‘(A) the related person bears a relation8 ship to such other person specified in section

9 267(b) or 707(b)(1), or

10 ‘‘(B) the related person and such other

11 person are engaged in trades or businesses

12 under common control (within the meaning of

13 subsections (a) and (b) of section 52).

14 For purposes of subparagraph (A), ‘10 percent’ shall

15 be substituted for ‘50 percent’ in applying sections

16 267(b)(1) and 707(b)(1). In the case of the acquisi17 tion of any property by any partnership which re18 sults from the termination of another partnership

19 under section 708(b)(1)(B), the determination under

20 this paragraph of whether the acquiring partnership

21 is related to the other partnership shall be made im22 mediately before the event resulting in such termi23 nation.

24 ‘‘(d) SPECIAL RULES FOR RECAPTURE IN CASE OF

25 DISPOSITIONS, ETC.—
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1 ‘‘(1) IN GENERAL.—If, during any taxable year,

2 property which is qualified nonresidential real prop3 erty, qualified residential rental property, or quali4 fied section 179 property—

5 ‘‘(A) is disposed of other than to a person

6 who is to continue the use of such property as

7 qualified property, or

8 ‘‘(B) in the case of qualified section 179

9 property, is removed from the applicable Fed10 eral military installation, or otherwise ceases to

11 be used in the active conduct of a trade or busi12 ness on such installation,

13 the tax under this chapter for such taxable year

14 shall be increased by the amount described in para15 graph (2).

16 ‘‘(2) AMOUNT OF INCREASE.—The increase in

17 tax under paragraph (1) shall equal the amount

18 which bears the same ratio to the aggregate decrease

19 in the tax for all prior taxable years which resulted

20 solely from the application of this section to the

21 property as the number of taxable years that the

22 property was held by the taxpayer bears to the appli23 cable recovery period for such property under section

24 312(k).’’
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1 (b) CONFORMING AMENDMENT.—The table of sub2 chapters for chapter 1 is amended by inserting after the

3 item relating to subchapter T the following new item:

‘‘SUBCHAPTER U. Tax incentives relating to closed Federal military installations.’’

4 (c) EFFECTIVE DATE.—The amendments made by

5 this section shall apply to taxable years beginning after

6 the date of the enactment of this Act.

7 SEC. 203. TREATMENT OF AMOUNTS PAID ON ACCOUNT OF

8 MILITARY BASE CLOSINGS.

9 (a) IN GENERAL.—Section 1034 (relating to rollover

10 of gain on sale of principal residence) is amended by redes11 ignating subsection (l) as subsection (m) and by inserting

12 after subsection (k) the following new subsection:

13 ‘‘(l) TREATMENT OF AMOUNTS PAID ON ACCOUNT

14 OF MILITARY BASE CLOSINGS.—Amounts received under

15 section 1013(c)(1) of the Demonstration Cities and Metro16 politan Development Act of 1966 (42 U.S.C.

17 3374(c)(1))—

18 ‘‘(1) shall be treated for purposes of this chap19 ter as part of the amount realized on the sale of the

20 residence, and

21 ‘‘(2) shall not be treated for purposes of this

22 title as compensation for services.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall apply to amounts received in taxable

3 years beginning after December 31, 1993.

4 TITLE III—ECONOMIC ADJUST5 MENT AND CONVERSION AS6 SISTANCE

7 SEC. 301. AUTHORIZATION OF APPROPRIATIONS FOR COM8 MUNITY ECONOMIC ADJUSTMENT ASSIST9 ANCE AND EMPHASIS ON PROVIDING SUCH

10 ASSISTANCE TO THE MOST SERIOUSLY AF11 FECTED COMMUNITIES.

12 (a) PRIORITY FOR THE MOST SERIOUSLY AFFECTED

13 COMMUNITIES.—Subsection (a) of section 4103 of the De14 fense Economic Adjustment, Diversification, Conversion,

15 and Stabilization Act of 1990 (division D of Public Law

16 101–510; 104 Stat. 1851) is amended by adding at the

17 end the following new sentences: ‘‘In making economic ad18 justment assistance available under this section, the Eco19 nomic Development Administration shall ensure that

20 funds are reserved for communities identified as the most

21 substantially and seriously affected by the closure or re22 alignment of a military installation or the curtailment,

23 completion, elimination, or realignment of a major defense

24 contract or subcontract. The Administration shall identify
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1 such communities through the use of objective evidence,

2 such as increasing unemployment.’’.

3 (b) AUTHORIZATION OF APPROPRIATIONS.—Sub4 section (b) of such section is amended by striking out the

5 first sentence and inserting in lieu thereof the following:

6 ‘‘There are authorized to be appropriated to the Secretary

7 of Defense to carry out subsection (a) $200,000,000 for

8 each of the fiscal years 1994 through 1996.’’.

9 SEC. 302. LOAN GUARANTY PROGRAM.

10 (a) ESTABLISHMENT.—The Secretary of Defense

11 shall establish a program to guarantee loans made by ap12 proved lenders to civilian employees of the Department of

13 Defense employed at or in connection with a military in14 stallation in the United States to be closed or realigned

15 pursuant to the Defense Base Closure and Realignment

16 Act of 1990 (part A of title XXIX of Public Law 101–

17 510; 10 U.S.C. 2687 note) or title II of the Defense Au18 thorization Amendments and Base Closure and Realign19 ment Act (Public Law 100–526; 10 U.S.C. 2687 note).

20 (b) AMOUNT OF GUARANTY.—The total amount of

21 loans guaranteed under subsection (a) for an employee re22 ferred to in that subsection may not exceed $10,000.

23 (c) APPLICATION FOR GUARANTY.—An employee re24 ferred to subsection (a) shall submit an application to the

25 Secretary, in such form and manner as the Secretary may
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1 require, to receive a loan guaranty under that subsection.

2 Subject to the approval of the Secretary, the employee

3 may designate the loan to which the guaranty shall apply.

4 The designation of a loan may not be changed after a cer5 tificate of guaranty is issued for the loan until the loan

6 is completely paid.

7 (d) CERTIFICATE OF GUARANTY.—When a loan is

8 guaranteed under this section, the Secretary shall provide

9 the lender with a loan guaranty certificate or other evi10 dence of the guaranty. The lender may require the certifi11 cate as a condition of making the loan.

12 (e) APPROVED LENDERS.—A loan may be guaran13 teed under this section only if made—

14 (1) by a Federal land bank, national bank,

15 State bank, private bank, building and loan associa16 tion, insurance company, credit union, or mortgage

17 and loan company, that is subject to examination

18 and supervision by an agency of the United States

19 or of a State; or

20 (2) by any other lender approved by the Sec21 retary under standards established by the Secretary.

22 (f) DEFAULT.—In the event of default in the pay23 ment of a loan guaranteed under this section, the holder

24 of the obligation shall notify the Secretary. Upon receipt

25 of that notice, the Secretary shall pay to the holder an
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1 amount equal to the amount of the loan in default or the

2 amount of originally guaranteed, whichever is less. The

3 Secretary shall be subrogated to the rights of the holder

4 to the extent of the amount paid by the Secretary.

5 SEC. 303. INCREASE IN AVERAGE AMOUNT OF ECONOMIC

6 PLANNING GRANTS PROVIDED BY THE OF7 FICE OF ECONOMIC ADJUSTMENT.

8 Section 2391(b) of title 10, United States Code, is

9 amended by adding at the end the following new para10 graph:

11 ‘‘(6) In the case of a State or local government di12 rectly and adversely affected by the closure of a military

13 installation, the average amount of assistance made avail14 able under paragraph (1) to that State or local govern15 ment for planning community adjustments and economic

16 diversification in consequence of that closure shall not be

17 less than $250,000 per year during the course of that clo18 sure.’’.

19 SEC. 304. ADJUSTMENT ASSISTANCE FOR EMPLOYEES.

20 Section 4203(a) of the Defense Economic Adjust21 ment, Diversification, Conversion, and Stabilization Act of

22 1990 (division D of Public Law 101–510; 104 Stat. 1853)

23 is amended by inserting after ‘‘fiscal year 1991’’ the fol24 lowing: ‘‘and $250,000,000 for each of the fiscal years

25 1994 through 1996.’’.
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1 SEC. 305. CONVEYANCE OF CLOSED BASES TO NEIGHBOR2 ING COMMUNITIES.

3 (a) FINDINGS AND PURPOSES.—(1) The Congress

4 finds the following:

5 (A) The Department of Defense has been di6 rected to reduce the size and cost of the military and

7 this can only be accomplished by closing military

8 installations.

9 (B) A military installation is a part of the in10 frastructure of the community in which it is located

11 and there is a long standing symbiotic relationship

12 between a military installation and the community.

13 (C) The people in an impacted community have

14 made substantial, long term investments of time,

15 training, and wealth to support the military installa16 tion.

17 (D) The loss to an impacted community when

18 a military installation is closed may be substantial

19 and in such cases the Congress wishes to mitigate

20 the damage to the impacted community.

21 (E) An impacted community knows best the

22 needs of the community and the best way to use

23 available resources to meet these needs consistent

24 with existing national priorities.

25 (F) Unfettered ownership of the real property

26 associated with a closed military installation at the
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1 earliest possible time can partially offset the loss to

2 a community which results when a military installa3 tion is closed.

4 (2) The purposes of this section are as follows:

5 (A) To benefit communities impacted signifi6 cantly when a military installation located in such

7 communities is closed by authorizing the real and

8 excess related personal property on which the mili9 tary installations are located to be conveyed to the

10 impacted community as soon as possible after a deci11 sion to close the military installation is made but no

12 later than 180 days after closure.

13 (B) To provide significantly impacted commu14 nities a resource which will aid in mitigating the loss

15 incurred by the community following a decision to

16 close a military installation and which may be used

17 by the impacted community, as the community

18 deems appropriate, for industrial, commercial, resi19 dential, recreational, or public uses.

20 (b) IN GENERAL.—Notwithstanding any other provi21 sion of law, the Secretary of Defense shall convey to an

22 eligible political subdivision or subdivisions of a State or

23 to the State in accordance with this section all right, title,

24 and interest of the United States in the military installa25 tion closed pursuant to a base closure law.
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1 (c) ADVANCE NOTICE TO ELIGIBLE STATES AND PO2 LITICAL SUBDIVISIONS.—As soon as practicable after a

3 military installation has been identified for closure, but in

4 any event not later than the date on which the installation

5 is closed, the Secretary shall transmit to the appropriate

6 State, and political subdivisions, communities, and coun7 ties of the State to which property at such installation may

8 be conveyed pursuant to this section, advance notification

9 of the Secretary’s intention to make a conveyance of the

10 property of the installation.

11 (d) ELIGIBLE STATES AND POLITICAL SUBDIVI12 SIONS.—Property at a military installation that is to be

13 conveyed under subsection (b) shall be conveyed to a polit14 ical subdivision or subdivisions or State in the following

15 order of priority:

16 (1) The Secretary shall convey the property to

17 a political subdivision of a State that is designated

18 in State law to receive the conveyance of such prop19 erty and accepts the conveyance.

20 (2) If there is no political subdivision des21 ignated to receive the property pursuant to para22 graph (1), the Secretary shall convey the property to

23 the State in which the property is located if the law

24 of that State designates the State to receive the con-
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1 veyance of such property and the State accepts the

2 conveyance.

3 (3) In the case of any real property for which

4 neither a State nor a political subdivision of a State

5 is designated pursuant to paragraph (1) or (2), the

6 Secretary shall consult with appropriate State and

7 local officials to determine the distribution of the

8 property that would best serve the interests of the

9 residents of the State and affected political subdivi10 sions of the State. The Secretary shall convey the

11 property in accordance with the determination made

12 under this paragraph if the selected political subdivi13 sion or subdivisions agree to accept the property.

14 (4) In the case of any real property that is not

15 accepted under the preceding paragraphs, the Sec16 retary shall offer the property to other departments

17 and agencies of the Federal Government.

18 (e) PROPERTY TO BE CONVEYED.—In addition to

19 the conveyance of real property to a State or political sub20 division pursuant to this section, the Secretary shall con21 vey any related personal property that the Secretary deter22 mines is appropriate for use by the recipient in connection

23 with the recipient’s use of the real property. Pending such

24 conveyance, the Secretary shall maintain the real property
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1 and personal property to prevent the deterioration of the

2 property.

3 (f) CONSIDERATION NOT TO BE REQUIRED.—No

4 consideration may be required for a conveyance of prop5 erty pursuant to this section.

6 (g) WAIVER AUTHORITY.—(1) Subject to paragraph

7 (3), the President may waive in whole or in part the re8 quirement to convey property at a military installation

9 under subsection (b) if the President—

10 (A) determines that the continuation of the

11 United States interest in such property—

12 (i) is vital to national security interests; or

13 (ii) the value of the installation is so high

14 that a conveyance to the political subdivision or

15 State would constitute an undue windfall to the

16 community and would not be necessary for the

17 economic recovery of the region; and

18 (B) transmits to Congress a certification of

19 such determinations together with the reasons for

20 such determinations.

21 (2) The total number of waivers made under para22 graph (1) may not exceed five military installations for

23 each package of closures approved by Defense Base Clo24 sure And Realignment Commission under a base closure

25 Law, except that a waiver in part shall not count against
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1 this total if the value of the property reserved does not

2 exceed 25 percent of the total value of such installation

3 or if the appropriate political subdivision or State agrees

4 with the reservation.

5 (3) A determination and certification in the case of

6 the closure of any military installation shall be effective

7 only if made before the earlier of—

8 (A) the date on which the installation is closed;

9 or

10 (B) December 31 of the year following the year

11 in which the closure of that installation is approved

12 by the President.

13 (4) The President may extend the deadline for mak14 ing a determination and certification under paragraph (3)

15 for not more than two successive periods of 90 days by

16 transmitting to Congress a notification of the extension

17 before the end of the deadline or extended deadline, as

18 the case may be.

19 (5) The President may withdraw a waiver under

20 paragraph (1) in the case of any military installation. Not

21 later than 180 days after the withdrawal of the waiver,

22 the Secretary of Defense shall make the conveyance re23 quired by subsection (b) in accordance with this section.

24 (h) CONTINUING RESPONSIBILITY OF THE DEPART25 MENT OF DEFENSE.—Prior to and after any conveyance
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1 of real property of a closed military installation pursuant

2 to this section, the Secretary of Defense, in consultation

3 with the appropriate political subdivision or State, shall

4 be responsible for providing economic adjustment and

5 community planning assistance (including assistance in

6 conducting public hearings to decide the appropriate use

7 of a closed military installation) to communities near the

8 closed military installation until such time as the economic

9 stability of such communities is achieved, as determined

10 by the Secretary.

11 (i) SOURCES OF FUNDING.—The Secretary may ex12 pend any funds in a base closure account to carry out the

13 responsibilities referred to in subsection (h). The Sec14 retary shall notify Congress in advance of the obligation

15 of funds for such purpose.

16 (j) IMPROVEMENT OF PROPERTY PENDING CONVEY17 ANCE.—(1) Notwithstanding any other provision of law,

18 the Secretary of Defense and the head of any other de19 partment or agency of the Federal Government may con20 tinue, on and after the applicable date referred to in para21 graph (2), to obligate funds (to the extent available) for

22 making improvements to the property that has not been

23 conveyed that will facilitate the conveyance of the property

24 and are consistent with the use to be made of the property

25 by the recipient of the conveyance.
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1 (2) Paragraph (1) applies in the case of property at

2 a military installation on and after the date on which the

3 closure of that installation is approved by the President.

4 (k) DEFINITIONS.—For purposes of the section:

5 (1) The term ‘‘military installation’’ has the

6 meaning given such term in section 2687(e)(1) of

7 title 10, United States Code.

8 (2) The term ‘‘base closure law’’ means the

9 following:

10 (A) The Defense Base Closure and Re11 alignment Act of 1990 (part A of title XXIX of

12 Public Law 101–510; 10 U.S.C. 2687 note).

13 (B) Title II of the Defense Authorization

14 Amendments and Base Closure and Realign15 ment Act (Public Law 100–526; 10 U.S.C.

16 2687 note).

17 (C) Section 2687 of title 10, United States

18 Code.

19 (3) The term ‘‘base closure account’’ means the

20 following:

21 (A) The Department of Defense Base Clo22 sure Account, as established by section 207(a)

23 of the Defense Authorization Amendments and

24 Base Closure and Realignment Act (Public Law

25 100–526; 10 U.S.C. 2687 note).
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1 (B) The Department of Defense Base Clo2 sure Account 1990, as established by section

3 2906 of the Defense Base Closure and Realign4 ment Act of 1990 (part A of title XXIX of

5 Public Law 101–510; 10 U.S.C. 2687 note).

6 SEC. 306. PREFERENCE FOR LOCAL AND SMALL BUSI7 NESSES.

8 (a) PREFERENCE REQUIRED.—In entering into con9 tracts with private entities as part of the closure or re10 alignment of a military installation under a base closure

11 law, the Secretary of Defense shall give preference, to the

12 greatest extent practicable, to businesses located in the vi13 cinity of the installation and small business concerns. Con14 tracts for which this preference shall be given shall include

15 contracts to carry out activities for the environmental res16 toration and mitigation at a military installation to be

17 closed or realigned.

18 (b) DEFINITIONS.—For purposes of this section:

19 (1) The term ‘‘small business concern’’ has the

20 meaning given such term in section 3 of the Small

21 Business Act (15 U.S.C. 632).

22 (2) The term ‘‘base closure law’’ means the

23 following:

24 (A) The Defense Base Closure and Re25 alignment Act of 1990 (part A of title XXIX of
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1 Public Law 101–510; 104 Stat. 1808; 10

2 U.S.C. 2687 note).

3 (B) Title II of the Defense Authorization

4 Amendments and Base Closure and Realign5 ment Act (Public Law 100–526; 10 U.S.C.

6 2687 note).

7 (C) Section 2687 of title 10, United States

8 Code.

9 SEC. 307. EXPANSION OF HOMEOWNERS ASSISTANCE PRO10 GRAM TO INCLUDE EMPLOYEES OF LOCAL

11 EDUCATIONAL AGENCIES ADVERSELY AF12 FECTED BY BASE CLOSURES.

13 (a) AVAILABILITY OF HOMEOWNERS ASSISTANCE.—

14 The Secretary of Defense shall make available assistance

15 under section 1013(c) of the Demonstration Cities and

16 Metropolitan Development Act of 1966 (42 U.S.C.

17 3374(c)) to eligible school employees of a local educational

18 agency that operates schools in which—

19 (1) students are enrolled who are dependent

20 children of members of the Armed Forces or of civil21 ian employees of the Department of Defense;

22 (2) enrollments of such students will decline as

23 a result of the closure of a military installation at

24 which the parents of such students are stationed or

25 employed; and
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1 (3) at the time of the public announcement of

2 the closure of the military installation, such students

3 account for not less than 80 percent of the entire

4 student population of such schools.

5 (b) ELIGIBILITY CRITERIA FOR SCHOOL EMPLOY6 EES.—A school employee of a local educational agency de7 scribed in subsection (a) shall be eligible for the benefits

8 of section 1013(c) of the Demonstration Cities and Metro9 politan Development Act of 1966 if the school employee—

10 (1) at the time of the public announcement of

11 the closure of the military installation—

12 (A) is the owner-occupant of a dwelling

13 that is situated near the military installation;

14 and

15 (B) is employed by the local educational

16 agency; and

17 (2) after such announcement—

18 (A) is terminated or voluntarily released

19 from employment with the local educational

20 agency as a result of actual or anticipated en21 rollment reductions caused by the closure of the

22 military installation, as determined by the Sec23 retary; and

24 (B) relocates beyond normal commuting

25 distance of the owned dwelling or is unemployed
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1 (not as a matter of personal choice) and able to

2 demonstrate to the Secretary such financial

3 hardship as to be unable to meet mortgage pay4 ments and related expenses as a result of that

5 unemployment.

6 (c) APPLICATION.—The Secretary shall establish by

7 rule an application procedure by which school employees

8 of a local educational agency described in subsection (a)

9 may apply for benefits under section 1013(c) of the Dem10 onstration Cities and Metropolitan Development Act of

11 1966. The rules shall include the time period after the

12 public announcement of the closure of a military installa13 tion within which such applications must be submitted.

14 (d) DEFINITIONS.—For purposes of this section:

15 (1) The term ‘‘local educational agency’’ has

16 the meaning given that term in section 1471(12) of

17 the Elementary and Secondary Education Act of

18 1965 (20 U.S.C. 2891(12)).

19 (2) The term ‘‘military installation’’ has the

20 meaning given that term in section 2687 of title 10,

21 United States Code.

22 (3) The term ‘‘school employee’’ includes a su23 perintendent, administrator, teacher, or custodial

24 and other support person employed by a local edu25 cational agency.
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1 (4) The term ‘‘Secretary’’ means the Secretary

2 of Defense.

3 (e) EFFECTIVE DATE.—This section shall apply with

4 respect to closures of military installations under the De5 fense Base Closure and Realignment Act of 1990 (part

6 A of title XXIX of Public Law 101–510; 104 Stat. 1808;

7 10 U.S.C. 2687 note) and title II of Defense Authoriza8 tion Amendments and Base Closure and Realignment Act

9 (Public Law 100–526; 102 Stat. 2627; 10 U.S.C. 2687

10 note) announced before, on, or after the date of the enact11 ment of this Act.

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