I

103D CONGRESS

1ST SESSION H. R. 1259

To provide for the economic conversion and diversification of industries in

the defense industrial base of the United States that are adversely

affected by significant reductions in spending for national defense.

IN THE HOUSE OF REPRESENTATIVES

MARCH 9, 1993

Mr. LANTOS introduced the following bill; which was referred jointly to the

Committees on Banking, Finance and Urban Affairs, Education and

Labor, Small Business, Foreign Affairs, and Public Works and Transportation

A BILL

To provide for the economic conversion and diversification

of industries in the defense industrial base of the United

States that are adversely affected by significant reductions in spending for national defense.

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.

4 This Act may be cited as the ‘‘Defense Industrial Sta5 bilization and Community Transition Act of 1993’’.
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1 TITLE I—PRESIDENTIAL COUNCIL ON

2 ECONOMIC DIVERSIFICATION AND AD3 JUSTMENT

4 SEC. 101. ESTABLISHMENT AND MEMBERSHIP.

5 (a) ESTABLISHMENT.—There is established in the

6 Executive Office of the President a Council to be known

7 as the ‘‘Presidential Council on Economic Diversification

8 and Adjustment’’.

9 (b) MEMBERSHIP.—The Council shall be composed of

10 the following:

11 (1) The Secretary of Commerce, who shall be

12 the Chairman of the Council.

13 (2) The Secretary of Labor.

14 (3) The Secretary of Health and Human Serv15 ices.

16 (4) The Secretary of Defense.

17 (5) The Secretary of Energy.

18 SEC. 102. RESPONSIBILITIES.

19 (a) IN GENERAL.—The Council shall have the follow20 ing responsibilities:

21 (1) To determine the amounts of the projected

22 future reductions in spending under the national de23 fense budget function and the sectors under such

24 budget function in which significant reductions will

25 occur.
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1 (2) To identify the communities and businesses

2 within the United States that will be adversely af3 fected by such spending reductions.

4 (3) To assist those businesses and the econo5 mies of those communities to diversify into

6 nondefense commercial activities before such spend7 ing reductions adversely affect such businesses and

8 communities.

9 (4) To assist defense-dependent industries in

10 seeking new markets for the products of such indus11 tries.

12 (5) To assist workers adversely affected by

13 spending reductions referred to in paragraph (1).

14 (6) To serve as a liaison among Federal Gov15 ernment programs on technology transfer, marketing

16 assistance, small business, economic development,

17 job training, and export enhancement in order to en18 sure that all available Federal resources are utilized

19 to minimize the adverse effects referred to in para20 graph (2) in the most effective manner possible.

21 (7) To maintain the integrity of the defense in22 dustrial base of the United States during periods of

23 significant reductions in spending under the national

24 defense budget function.
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1 (8) To ensure that the technological base of the

2 United States is not unduly impaired by such reduc3 tions.

4 (9) To publish an annual report in accordance

5 with subsection (b).

6 (10) To maintain a clearinghouse of informa7 tion on State and local initiatives on economic and

8 commercial diversification of businesses referred to

9 in paragraph (2) and the economies of communities

10 referred to in that paragraph and to publish an an11 nual report on, and evaluation of, those initiatives.

12 (11) To assist State economic development of13 fices in the planning of regional meetings and con14 ferences on economic and commercial diversification

15 and to participate in such meetings and conferences

16 to the extent appropriate.

17 (12) To ensure that communities, businesses,

18 and workers likely to be significantly adversely af19 fected by spending reductions referred to in section

20 102(a)(1) are given advanced notice, under section

21 4101 of Public Law 101–510 (10 U.S.C. 2391 note)

22 or otherwise, of the likely adverse effects of such re23 ductions.

24 (13) To allocate funds in the Defense Economic

25 Adjustment Trust Fund established under section
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1 801 to programs, projects, and activities referred to

2 in subsection (b) of that section.

3 (b) ANNUAL REPORT ON ADVERSELY AFFECTED

4 COMMUNITIES AND BUSINESSES.—At the same time as

5 the President submits the budget to Congress pursuant

6 to section 1105 of title 31, United States Code, each year,

7 the Council shall publish a report that identifies—

8 (1) the defense-dependent communities and

9 businesses that are likely to be significantly ad10 versely affected by spending reductions that—

11 (A) are provided for under the national de12 fense budget function in that budget or in the

13 multiyear defense program submitted to Con14 gress with that budget pursuant to section 114a

15 of title 10, United States Code; or

16 (B) may result from projected changes in

17 programs, projects, and activities of the Depart18 ment of Defense that are provided for in any

19 other relevant documents; and

20 (2) the defense-dependent communities and

21 businesses that might be adversely affected by po22 tential future spending reductions under the national

23 security budget function.
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1 SEC. 103. DEFENSE DEPENDENCY AND DEFENSE BUSI2 NESSES.

3 (a) DEFENSE DEPENDENCY.—The Council shall pre4 scribe the criteria for determining which regions, commu5 nities, businesses, and industries are defense-dependent

6 regions, communities, businesses, and industries for the

7 purposes of this Act.

8 (b) DEFENSE BUSINESS DEFINED.—In this Act, the

9 term ‘‘defense business’’ means a commercial enterprise

10 that derives a substantial percentage (as defined by the

11 Council) of its annual revenues from the performance of

12 Department of Defense contracts as a prime contractor

13 or a subcontractor.

14 SEC. 104. COUNCIL WORKING GROUPS.

15 (a) WORKING GROUPS NAMED.—There shall be four

16 working groups under the Council as follows:

17 (1) A working group on technology.

18 (2) A working group on marketing.

19 (3) A working group on small business.

20 (4) A working group on job training.

21 (b) WORKING GROUP ON TECHNOLOGY.—(1) The

22 Under Secretary of Commerce for Technology shall be the

23 chairman of the working group on technology.

24 (2) The working group on technology shall—

25 (A) coordinate Federal technology transfer ini26 tiatives among defense-dependent businesses and
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1 other businesses in defense-dependent regions of the

2 United States;

3 (B) publish an annual guide to Federal Govern4 ment technology transfer programs that are avail5 able for providing assistance to such businesses re6 garding diversification of production;

7 (C) provide such businesses with assistance in

8 applying for assistance under such programs; and

9 (D) issue an annual report containing a discus10 sion of—

11 (i) the extent to which skilled labor and

12 technologically advanced equipment is being re13 tained within regions of the United States expe14 riencing significant adverse effects resulting

15 from spending reductions referred to in section

16 102(a)(1); and

17 (ii) the extent to which existing technology

18 transfer programs are encouraging stability in

19 the availability of skilled labor and techno20 logically advanced equipment in such regions.

21 (3) The working group on technology, the Defense

22 Advanced Research Projects Agency of the Department of

23 Defense, and the National Institute of Standards and

24 Technology shall—
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1 (A) conduct a joint study of the unique techno2 logical needs of defense businesses seeking to diver3 sify or convert to nondefense production; and

4 (B) issue a report containing recommendations

5 on ways to strengthen existing programs for the en6 couragement of such diversification or conversion.

7 (c) WORKING GROUP ON MARKETING.—(1) The

8 Under Secretary of Commerce for International Trade

9 shall be the chairman of the working group on marketing.

10 (2) The working group on marketing shall provide—

11 (A) businesses referred to in section 102(a)(2)

12 that are seeking to diversify, or are newly diversi13 fied, into nondefense commercial activities with—

14 (i) advice on foreign and domestic markets;

15 and

16 (ii) other relevant marketing advice;

17 (B) publish an annual guide to Federal Govern18 ment marketing and export financing programs;

19 (C) provide defense businesses in defense-de20 pendent regions of the United States with assistance

21 in applying for Federal Government assistance avail22 able through programs of the International Trade

23 Administration of the Department of Commerce and

24 the Export-Import Bank; and
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1 (D) administer the grant program under the

2 provisions of title II of this Act.

3 (3) The working group on marketing and the Depart4 ment of Commerce shall—

5 (A) conduct a joint study of the unique market6 ing needs of defense businesses seeking to diversify

7 or convert to nondefense production; and

8 (B) issue a report containing recommendations

9 on ways to strengthen existing programs for encour10 aging such diversification and conversion.

11 (d) WORKING GROUP ON SMALL BUSINESS.—(1)

12 The Administrator of the Small Business Administration

13 shall be the chairman of the working group on small busi14 ness.

15 (2) The working group on small business shall—

16 (A) ensure that programs administered by the

17 Small Business Administration are coordinated with

18 Federal Government activities that support economic

19 diversification of defense-dependent communities and

20 commercial diversification of defense-dependent busi21 nesses;

22 (B) issue an annual guide to Small Business

23 Administration programs available for providing

24 small business concerns that are defense businesses

25 with assistance on diversifying into nondefense busi-
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1 ness activities and new small business concerns with

2 assistance on commencing nondefense commercial

3 operations in defense-dependent regions of the Unit4 ed States; and

5 (C) issue an annual report containing—

6 (i) a discussion of the effectiveness of the

7 programs referred to in subparagraphs (A) and

8 (B) in meeting the needs of the businesses re9 ferred to in such subparagraphs; and

10 (ii) recommendations for improving such

11 programs.

12 (e) WORKING GROUP ON JOB TRAINING.—(1) The

13 Secretary of Labor shall be the chairman of the working

14 group on job training.

15 (2) The working group on job training shall—

16 (A) coordinate job training programs for work17 ers who are displaced as a result of the spending re18 ductions referred to in section 102(a)(1);

19 (B) issue an annual guide to Federal Govern20 ment job training and unemployment programs that

21 are available to workers displaced as a result of such

22 spending reductions; and

23 (C) provide such workers with assistance in ap24 plying for Federal Government assistance under
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1 those programs that are administered by the De2 partment of Labor.

3 SEC. 105. ADVISORY COMMITTEE.

4 (a) IN GENERAL.—There shall be an advisory com5 mittee for the Council.

6 (b) COMPOSITION.—The advisory committee shall

7 consist of three representatives of industry in the defense

8 industrial base of the United States, six representatives

9 of labor unions, and three members not from industry in

10 the defense industrial base of the United States or from

11 labor unions. The members shall be appointed by the

12 President for such terms as the President determines ap13 propriate.

14 (c) EX OFFICIO MEMBERSHIP OF COUNCIL WORK15 ING GROUPS.—The advisory committee members shall be

16 members without vote of the Council and of the working

17 groups referred to in section 103 and shall provide advice

18 to the Council and to those working groups.

19 (d) INAPPLICABILITY OF TERMINATION PROVISION

20 IN THE FEDERAL ADVISORY COMMITTEE ACT.—Section

21 14 of the Federal Advisory Committee Act (5 U.S.C.

22 App.) shall not apply to the advisory committee estab23 lished under subsection (a).
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1 SEC. 106. COUNCIL PERSONNEL MATTERS.

2 (a) STAFF.—The Chairman of the Council may ap3 point a staff director and such other additional personnel

4 as may be necessary to enable the Council to perform its

5 duties. The employment of a staff director shall be subject

6 to confirmation by the Council.

7 (b) DETAIL OF GOVERNMENT EMPLOYEES.—Any

8 Federal Government employee may be detailed to the

9 Council or a working group of the Council without reim10 bursement to the department or agency from which the

11 employee is detailed.

12 (c) PROCUREMENT OF TEMPORARY AND INTERMIT13 TENT SERVICES.—The Chairman of the Council may pro14 cure temporary and intermittent services under section

15 3109(b) of title 5, United States Code, at rates for individ16 uals which do not exceed the daily equivalent of the annual

17 rate of basic pay prescribed for Executive Level V of the

18 Executive Schedule under section 5316 of such title.

19 (d) ADVISORY COMMITTEE.—(1) Each member of the

20 advisory committee established under section 105 who is

21 not an officer or employee of the Federal Government

22 shall be compensated at a rate equal to the daily equiva23 lent of the annual rate of basic pay prescribed for Execu24 tive Level V of the Executive Schedule under section 5316

25 of title 5, United States Code, for each day (including

26 travel time) during which such member is engaged in the
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1 performance of the duties of the Council or a working

2 group of the Council. All members of the advisory commit3 tee who are officers or employees of the United States

4 shall serve without compensation in addition to that re5 ceived for their services as officers or employees of the

6 United States.

7 (2) The members of the advisory committee shall be

8 allowed travel expenses, including per diem in lieu of sub9 sistence, at rates authorized for employees of agencies

10 under subchapter I of chapter 57 of title 5, United States

11 Code, while away from their homes or regular places of

12 business in the performance of services for the Council.

13 (3) A member of the advisory committee who is not

14 otherwise employed by the Federal Government shall not

15 be considered to be a Federal employee except for the pur16 poses of—

17 (A) chapter 81 of title 5, United States Code,

18 relating to compensation for work-related injuries;

19 and

20 (B) chapter 171 of title 28, United States

21 Code, relating to torts claims.
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1 TITLE II—GRANT ASSISTANCE FOR

2 ALTERNATIVE USE COMMITTEES

3 SEC. 201. GRANT AUTHORITY.

4 The Presidential Council on Economic Diversification

5 and Adjustment may make a grant to any eligible alter6 native use committee at a facility of a defense business

7 for a purpose described in section 203.

8 SEC. 202. ELIGIBLE ALTERNATIVE USE COMMITTEES.

9 (a) ALTERNATIVE USE COMMITTEE DEFINED.—For

10 the purposes of this title, an alternative use committee at

11 a defense business is any committee established at a facil12 ity of a defense business for the purpose of planning for

13 the diversification of that facility into nondefense commer14 cial activities.

15 (b) GRANT ELIGIBILITY.—An alternative use com16 mittee at a facility of a defense business is eligible for a

17 grant under this title if, as determined by the Secretary

18 of Commerce, the committee is composed of—

19 (1) three representatives of the management of

20 that facility;

21 (2) three representatives of employees of that

22 facility;

23 (3) three representatives of local government in

24 the area in which the facility is located; and
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1 (4) three representatives of nongovernmental

2 leaders in the community in which the facility is lo3 cated.

4 SEC. 203. GRANT PURPOSES.

5 A grant may be made to an eligible alternative use

6 committee at a facility of a defense business for any of

7 the following purposes:

8 (1) To provide for a marketing expert to deter9 mine the potential market needs in the region of the

10 facility that provide diversification and conversion

11 opportunities for that facility.

12 (2) To provide a suitable office or offices for

13 such committee.

14 (3) To provide for one or more experts in rel15 evant technologies to determine the feasibility of var16 ious diversification and conversion alternatives for

17 that facility.

18 SEC. 204. GRANT AMOUNT AND PERIOD.

19 (a) MAXIMUM AMOUNT.—A grant to an alternative

20 use committee at a facility of a defense business for the

21 conduct of any activity referred to in section 203 may not

22 exceed the lesser of one-third of the cost incurred for such

23 activity during the period covered by the grant or $50,000.
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1 (b) PERIOD.—A grant may be made to a recipient

2 for one year. Second and subsequent grants may be made

3 for one year each.

4 SEC. 205. GRANT APPLICATION.

5 The application of an alternative use committee for

6 a grant under this title shall contain the following infor7 mation:

8 (1) The composition of the committee.

9 (2) A detailed proposal for the use of the grant

10 proceeds, including—

11 (A) the cost of the activity or activities re12 ferred to in section 203 that are proposed to be

13 carried out by the applicant; and

14 (B) in the case of a proposal for funding

15 activities referred to in paragraph (1) or (3) of

16 that section, the potential market needs or di17 versification and conversion alternatives, as the

18 case may be, to be studied and the methodology

19 to be used in conducting the study.

20 (3) Such other information as the Secretary of

21 Commerce may prescribe.

22 SEC. 206. REGULATIONS.

23 The Secretary of Commerce, in consultation with the

24 Presidential Council on Economic Diversification and Ad-
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1 justment, may prescribe regulations for the administration

2 of this title.

3 TITLE III—DISPLACED WORKERS

4 SEC. 301. DEFENSE CONVERSION ADJUSTMENT PROGRAM.

5 Section 325 of the Job Training Partnership Act (29

6 U.S.C. 1662d) is amended by inserting ‘‘and the sums

7 made available under section 801 of the Defense Savings

8 Investment Act of 1991’’ after ‘‘Act of 1990’’.

9 SEC. 302. FUNDING MATTERS.

10 (a) TRANSFER AUTHORITY.—The Council may trans11 fer funds under section 801(b) of this Act to the Depart12 ment of Labor for the purpose of providing assistance

13 under section 325 of the Job Training Partnership Act

14 (29 U.S.C. 1662d) to eligible employees, as defined in

15 such section.

16 (b) OBLIGATION OF TRANSFERRED FUNDS.—Of the

17 amount transferred pursuant to subsection (a) for any fis18 cal year—

19 (1) at least 50 percent shall be obligated not

20 later than February 1 of that fiscal year; and

21 (2) at least 90 percent shall be obligated not

22 later than August 1 of that fiscal year.
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1 TITLE IV—EXPORT OPPORTUNITIES

2 SEC. 401. ANNUAL REPORT OF THE EXPORT-IMPORT BANK.

3 Section 9(d)(1) of the Export-Import Bank Act of

4 1945 (12 U.S.C. 635g(d)(1)) is amended—

5 (1) by striking out ‘‘and’’ at the end of sub6 paragraph (D);

7 (2) by striking out the period at the end of sub8 paragraph (E) and inserting in lieu thereof ‘‘; and’’;

9 and

10 (3) by adding at the end the following:

11 ‘‘(F) to support the commercial diversification

12 of industries that are dependent to a significant ex13 tent on Federal Government spending under the na14 tional defense budget function.’’.

15 SEC. 402. GUARANTEES FOR COMMERCIAL DEFENSE EX16 PORTS.

17 Section 24 of the Arms Export Control Act is amend18 ed by adding the following new subsection:

19 ‘‘(d)(1) In order to enhance the ability of United

20 States exporters to compete on an equal footing with ex21 porters of other countries, the President may extend guar22 antees under the authority of this subsection in connection

23 with the commercial sale of defense articles and services

24 to NATO countries, Japan, Australia, New Zealand, and
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1 Israel. The aggregate amount guaranteed under this sub2 section in any fiscal year may not exceed $1,000,000,000.

3 ‘‘(2) In extending medium- and long-term guarantees

4 for commercial sales pursuant to paragraph (1), the Presi5 dent shall not offer terms and conditions more beneficial

6 than would be provided by the Export-Import Bank of the

7 United States under similar circumstances in conjunction

8 with the provision of guarantees for nondefense articles

9 and services.

10 ‘‘(3) Section 653 of the Foreign Assistance Act of

11 1961 shall not apply to funds appropriated to carry out

12 this subsection. In addition, section 634A of that Act and

13 any similar provision of law shall apply to the obligation

14 of funds to carry out this subsection only with respect to

15 guarantees, in particular cases of amounts exceeding

16 $20,000,000.

17 ‘‘(4) There are authorized to be appropriated for each

18 of fiscal years 1992 and 1993, $63,500,000 for the sub19 sidy cost of the guarantees authorized under this sub20 section.

21 ‘‘(5) The authorities of this subsection may be exer22 cised only to such extent and in such amounts as provided

23 for in advance in appropriations Acts.

24 ‘‘(6) Applications for guarantees issued under this

25 subsection shall be submitted to the Secretary of State,
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1 who is authorized to make such arrangements as nec2 essary with other agencies, including with the Export-Im3 port Bank of the United States, to process these applica4 tions and otherwise to implement this subsection.

5 ‘‘(7)(A) A fee shall be charged for each guarantee is6 sued under this subsection.

7 ‘‘(B) All fees collected in connection with guarantees

8 under this subsection shall be available to offset the cost

9 of guarantee obligations under this subsection.

10 ‘‘(C) All of the fees referred to in this paragraph, to11 gether with earnings on those fees and other income aris12 ing from guarantee operations under this subsection, shall

13 be held in a financing account maintained in the Treasury

14 of the United States. All funds in such account may be

15 invested in obligations of the United States. Any interest

16 or other receipts derived from such investments shall be

17 credited to such account and may be used for the purposes

18 specified in subparagraph (B).’’.

19 TITLE V—DEFENSE PRODUCTION ACT

20 SEC. 501. LOAN GUARANTEES.

21 Section 301 of the Defense Production Act of 1950

22 (50 U.S.C. App. 2091) is amended by adding at the end

23 the following new subsection:

24 ‘‘(f)(1) The President may also authorize any depart25 ment or agency of the Federal Government referred to in
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1 subsection (a)(1) to guarantee in whole or in part any pub2 lic or private financing institution (including any Federal

3 Reserve bank) against loss of principal or interest on any

4 loan, discount or advance, or on any commitment in con5 nection therewith, which may be made by such financing

6 institution for the purpose of financing the conversion of

7 businesses referred to in paragraph (2) from the produc8 tion of goods primarily for national defense-related pur9 poses to the production of goods for other commercial pur10 poses. A guaranteeing agency may provide a guaranty au11 thorized under this paragraph by commitment to pur12 chase, agreement to share losses, or otherwise.

13 ‘‘(2) The President may provide guaranty authority

14 under paragraph (1) only with respect to financing for

15 businesses critical to the defense industrial base of the

16 United States that are likely to be closed as a result of

17 projected reductions in Federal Government spending

18 under the national security budget function.

19 ‘‘(3) A guaranteeing agency may exercise authority

20 provided by the President under paragraph (1) without

21 regard to provisions of law relating to the making, per22 formance, amendment, or modification of contracts.

23 ‘‘(4) A small business concern (as defined in accord24 ance with section 3 of the Small Business Act) may not
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1 be held ineligible for the issuance of a guaranty under

2 paragraph (1) by reason of alternative sources of supply.

3 ‘‘(5) Subsections (a)(3) and (e) do not apply to the

4 authority provided under paragraph (1).’’.

5 SEC. 502. DIRECT LOANS.

6 Section 302 of the Defense Production Act of 1950

7 (50 U.S.C. App. 2092) is amended by adding at the end

8 the following new subsection:

9 ‘‘(d)(1) The President may make loans (including

10 participations in, or guarantees of, loans) to businesses re11 ferred to in paragraph (2) in order to finance, in whole

12 or in part, the conversion of such businesses from the pro13 duction of goods primarily for national defense-related

14 purposes to the production of goods for other commercial

15 purposes.

16 ‘‘(2) The President may provide for loans under para17 graph (1) only for businesses critical to the defense indus18 trial base of the United States that are likely to be closed

19 as a result of projected reductions in Federal Government

20 spending under the national security budget function.

21 ‘‘(3) Subsections (b) and (c) do not apply to the au22 thority provided under paragraph (1).’’.
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1 SEC. 503. JOINT VENTURES.

2 Title III of the Defense Production Act of 1950 (50

3 U.S.C. 2091 et seq.) is amended by adding at the end

4 the following:

5 ‘‘SEC. 310. JOINT VENTURES.

6 ‘‘(a) IN GENERAL.—The President is authorized to

7 enter into a joint venture to carry out the purposes of—

8 ‘‘(1) section 301(f); or

9 ‘‘(2) section 302(d);

10 and to authorize guarantees and make loans as authorized

11 by either such section to assist such a joint venture.

12 ‘‘(b) LIMITATION.—The total investment or other

13 participation by the United States in any joint venture

14 under this section may not exceed 40 percent of the total

15 investment by all parties to the joint venture.

16 ‘‘(c) REGULATIONS.—The Secretary of Defense may

17 issue such regulations as may be necessary to carry out

18 this section.’’.

19 SEC. 504. EFFECTIVE DATE.

20 The amendments made by sections 501, 502, and 503

21 shall take effect on October 1, 1992.

22 TITLE VI—SMALL BUSINESS

23 SEC. 601. SMALL BUSINESS DEVELOPMENT CENTERS.

24 The Administrator of the Small Business Administra25 tion shall take such actions as may be necessary to in26 crease—
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1 (1) the number of small business development

2 centers established under section 21 of the Small

3 Business Act (15 U.S.C. 648) in defense-dependent

4 regions of the United States; and

5 (2) the assistance and services provided by the

6 small business development centers to defense-de7 pendent small business concerns in such regions, es8 pecially marketing assistance.

9 SEC. 602. INCREASED ALLOCATION FOR SMALL BUSINESS

10 INNOVATION RESEARCH PROGRAM.

11 (a) IN GENERAL.—Section 9(f)(1) of the Small Busi12 ness Act (15 U.S.C. 638(f)(1)) is amended by striking out

13 ‘‘1.25 per centum’’ each place it appears and inserting in

14 lieu thereof ‘‘1.75 per centum’’.

15 (b) EFFECTIVE DATE.—The amendment made by

16 subsection (a) shall take effect on October 1, 1992.

17 TITLE VII—ECONOMIC DEVELOPMENT

18 ASSISTANCE

19 SEC. 701. ELIGIBILITY FOR SPECIAL ECONOMIC DEVELOP20 MENT AND ADJUSTMENT ASSISTANCE.

21 Communities identified pursuant to section 102(a)(2)

22 shall be eligible to receive special economic development

23 and adjustment assistance under title IX of the Public

24 Works and Economic Development Act of 1965 (42

25 U.S.C. 3241 et seq.).
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1 SEC. 702. FUNDING MATTERS.

2 (a) TRANSFER AUTHORITY.—The Council may trans3 fer funds under section 801(b)(4) of this Act to the De4 partment of Commerce for the purpose of providing assist5 ance under title IX of the Public Works and Economic

6 Development Act of 1965 to communities referred to in

7 section 701.

8 (b) OBLIGATION OF TRANSFERRED FUNDS.—Of the

9 amount transferred pursuant to subsection (a) for any fis10 cal year—

11 (1) at least 50 percent shall be obligated not

12 later than February 1 of that fiscal year; and

13 (2) at least 90 percent shall be obligated not

14 later than August 1 of that fiscal year.

15 TITLE VIII—DEFENSE ECONOMIC

16 ADJUSTMENT TRUST FUND

17 SEC. 801. ESTABLISHMENT AND USES OF FUND.

18 (a) ESTABLISHMENT.—There is established on the

19 books of the Treasury a fund to be known as the ‘‘Defense

20 Economic Adjustment Trust Fund’’ (hereafter in this sec21 tion referred to as the ‘‘Fund’’). The Fund shall be admin22 istered by the Secretary of the Treasury under the direc23 tion of the Presidential Council on Economic Diversifica24 tion and Adjustment established by section 101(a).
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1 (b) USES OF FUND.—Sums in the Fund shall be

2 available for carrying out programs, projects, and activi3 ties, as the Council may direct, under—

4 (1) this Act;

5 (2) sections 301(f) and 302(d) of the Defense

6 Production Act of 1950 (50 U.S.C. App. 2091(f)

7 and 2092(d)), as added by sections 501 and 502;

8 (3) section 303 of that Act (50 U.S.C. App.

9 2093);

10 (4) section 310 of that Act, as added by section

11 503;

12 (5) title IX of the Public Works and Economic

13 Development Act of 1965 (42 U.S.C. 3241 et seq.);

14 and

15 (6) section 325 of the Job Training Partnership

16 Act (29 U.S.C. 1662d).

17 (c) SOURCE OF FUNDS.—There is authorized to be

18 appropriated to the Fund for each fiscal year the amount

19 equal to 10 percent of the difference between—

20 (1) the amount of the budget authority nec21 essary to support military personnel end strengths

22 for such fiscal year at the same levels as was pro23 vided for the preceding fiscal year; and

24 (2) the amount of the budget authority nec25 essary to support military personnel end strengths
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1 for such fiscal year at the levels prescribed by law

2 for such fiscal year.

Æ