(b) PERIOD.—A grant may be made to a recipient
for one year. Second and subsequent grants may be made
for one year each.
SEC. 205. GRANT APPLICATION.
The application of an alternative use committee for
a grant under this title shall contain the following infor-
mation:
(1) The composition of the committee.
(2) A detailed proposal for the use of the grant
proceeds, including—
(A) the cost of the activity or activities re-
ferred to in section 203 that are proposed to be
carried out by the applicant; and
(B) in the case of a proposal for funding
activities referred to in paragraph (1) or (3) of
that section, the potential market needs or di-
versification and conversion alternatives, as the
case may be, to be studied and the methodology
to be used in conducting the study.
(3) Such other information as the Secretary of
Commerce may prescribe.
SEC. 206. REGULATIONS.
The Secretary of Commerce, in consultation with the
Presidential Council on Economic Diversification and Ad-
justment, may prescribe regulations for the administration
of this title.
TITLE III—DISPLACED WORKERS
SEC. 301. DEFENSE CONVERSION ADJUSTMENT PROGRAM.
Section 325 of the Job Training Partnership Act (29
U.S.C. 1662d) is amended by inserting ‘‘and the sums
made available under section 801 of the Defense Savings
Investment Act of 1991’’ after ‘‘Act of 1990’’.
SEC. 302. FUNDING MATTERS.
(a) TRANSFER AUTHORITY.—The Council may trans-
fer funds under section 801(b) of this Act to the Depart-
ment of Labor for the purpose of providing assistance
under section 325 of the Job Training Partnership Act
(29 U.S.C. 1662d) to eligible employees, as defined in
such section.
(b) OBLIGATION OF TRANSFERRED FUNDS.—Of the
amount transferred pursuant to subsection (a) for any fis-
cal year—
(1) at least 50 percent shall be obligated not
later than February 1 of that fiscal year; and
(2) at least 90 percent shall be obligated not
later than August 1 of that fiscal year.
TITLE IV—EXPORT OPPORTUNITIES
SEC. 401. ANNUAL REPORT OF THE EXPORT-IMPORT BANK.
Section 9(d)(1) of the Export-Import Bank Act of
1945 (12 U.S.C. 635g(d)(1)) is amended—
(1) by striking out ‘‘and’’ at the end of sub-
paragraph (D);
(2) by striking out the period at the end of sub-
paragraph (E) and inserting in lieu thereof ‘‘; and’’;
and
(3) by adding at the end the following:
‘‘(F) to support the commercial diversification
of industries that are dependent to a significant ex-
tent on Federal Government spending under the na-
tional defense budget function.’’.
SEC. 402. GUARANTEES FOR COMMERCIAL DEFENSE EX-
PORTS.
Section 24 of the Arms Export Control Act is amend-
ed by adding the following new subsection:
‘‘(d)(1) In order to enhance the ability of United
States exporters to compete on an equal footing with ex-
porters of other countries, the President may extend guar-
antees under the authority of this subsection in connection
with the commercial sale of defense articles and services
to NATO countries, Japan, Australia, New Zealand, and
Israel. The aggregate amount guaranteed under this sub-
section in any fiscal year may not exceed $1,000,000,000.
‘‘(2) In extending medium- and long-term guarantees
for commercial sales pursuant to paragraph (1), the Presi-
dent shall not offer terms and conditions more beneficial
than would be provided by the Export-Import Bank of the
United States under similar circumstances in conjunction
with the provision of guarantees for nondefense articles
and services.
‘‘(3) Section 653 of the Foreign Assistance Act of
1961 shall not apply to funds appropriated to carry out
this subsection. In addition, section 634A of that Act and
any similar provision of law shall apply to the obligation
of funds to carry out this subsection only with respect to
guarantees, in particular cases of amounts exceeding
$20,000,000.
‘‘(4) There are authorized to be appropriated for each
of fiscal years 1992 and 1993, $63,500,000 for the sub-
sidy cost of the guarantees authorized under this sub-
section.
‘‘(5) The authorities of this subsection may be exer-
cised only to such extent and in such amounts as provided
for in advance in appropriations Acts.
‘‘(6) Applications for guarantees issued under this
subsection shall be submitted to the Secretary of State,
who is authorized to make such arrangements as nec-
essary with other agencies, including with the Export-Im-
port Bank of the United States, to process these applica-
tions and otherwise to implement this subsection.
‘‘(7)(A) A fee shall be charged for each guarantee is-
sued under this subsection.
‘‘(B) All fees collected in connection with guarantees
under this subsection shall be available to offset the cost
of guarantee obligations under this subsection.
‘‘(C) All of the fees referred to in this paragraph, to-
gether with earnings on those fees and other income aris-
ing from guarantee operations under this subsection, shall
be held in a financing account maintained in the Treasury
of the United States. All funds in such account may be
invested in obligations of the United States. Any interest
or other receipts derived from such investments shall be
credited to such account and may be used for the purposes
specified in subparagraph (B).’’.
TITLE V—DEFENSE PRODUCTION ACT
SEC. 501. LOAN GUARANTEES.
Section 301 of the Defense Production Act of 1950
(50 U.S.C. App. 2091) is amended by adding at the end
the following new subsection:
‘‘(f)(1) The President may also authorize any depart-
ment or agency of the Federal Government referred to in
subsection (a)(1) to guarantee in whole or in part any pub-
lic or private financing institution (including any Federal
Reserve bank) against loss of principal or interest on any
loan, discount or advance, or on any commitment in con-
nection therewith, which may be made by such financing
institution for the purpose of financing the conversion of
businesses referred to in paragraph (2) from the produc-
tion of goods primarily for national defense-related pur-
poses to the production of goods for other commercial pur-
poses. A guaranteeing agency may provide a guaranty au-
thorized under this paragraph by commitment to pur-
chase, agreement to share losses, or otherwise.
‘‘(2) The President may provide guaranty authority
under paragraph (1) only with respect to financing for
businesses critical to the defense industrial base of the
United States that are likely to be closed as a result of
projected reductions in Federal Government spending
under the national security budget function.
‘‘(3) A guaranteeing agency may exercise authority
provided by the President under paragraph (1) without
regard to provisions of law relating to the making, per-
formance, amendment, or modification of contracts.
‘‘(4) A small business concern (as defined in accord-
ance with section 3 of the Small Business Act) may not
be held ineligible for the issuance of a guaranty under
paragraph (1) by reason of alternative sources of supply.
‘‘(5) Subsections (a)(3) and (e) do not apply to the
authority provided under paragraph (1).’’.
SEC. 502. DIRECT LOANS.
Section 302 of the Defense Production Act of 1950
(50 U.S.C. App. 2092) is amended by adding at the end
the following new subsection:
‘‘(d)(1) The President may make loans (including
participations in, or guarantees of, loans) to businesses re-
ferred to in paragraph (2) in order to finance, in whole
or in part, the conversion of such businesses from the pro-
duction of goods primarily for national defense-related
purposes to the production of goods for other commercial
purposes.
‘‘(2) The President may provide for loans under para-
graph (1) only for businesses critical to the defense indus-
trial base of the United States that are likely to be closed
as a result of projected reductions in Federal Government
spending under the national security budget function.
‘‘(3) Subsections (b) and (c) do not apply to the au-
thority provided under paragraph (1).’’.
SEC. 503. JOINT VENTURES.
Title III of the Defense Production Act of 1950 (50
U.S.C. 2091 et seq.) is amended by adding at the end
the following:
‘‘SEC. 310. JOINT VENTURES.
‘‘(a) IN GENERAL.—The President is authorized to
enter into a joint venture to carry out the purposes of—
‘‘(1) section 301(f); or
‘‘(2) section 302(d);
and to authorize guarantees and make loans as authorized
by either such section to assist such a joint venture.
‘‘(b) LIMITATION.—The total investment or other
participation by the United States in any joint venture
under this section may not exceed 40 percent of the total
investment by all parties to the joint venture.
‘‘(c) REGULATIONS.—The Secretary of Defense may
issue such regulations as may be necessary to carry out
this section.’’.
SEC. 504. EFFECTIVE DATE.
The amendments made by sections 501, 502, and 503
shall take effect on October 1, 1992.
TITLE VI—SMALL BUSINESS
SEC. 601. SMALL BUSINESS DEVELOPMENT CENTERS.
The Administrator of the Small Business Administra-
tion shall take such actions as may be necessary to in-
crease—
(1) the number of small business development
centers established under section 21 of the Small
Business Act (15 U.S.C. 648) in defense-dependent
regions of the United States; and
(2) the assistance and services provided by the
small business development centers to defense-de-
pendent small business concerns in such regions, es-
pecially marketing assistance.
SEC. 602. INCREASED ALLOCATION FOR SMALL BUSINESS
INNOVATION RESEARCH PROGRAM.
(a) IN GENERAL.—Section 9(f)(1) of the Small Busi-
ness Act (15 U.S.C. 638(f)(1)) is amended by striking out
‘‘1.25 per centum’’ each place it appears and inserting in
lieu thereof ‘‘1.75 per centum’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 1992.
TITLE VII—ECONOMIC DEVELOPMENT
ASSISTANCE
SEC. 701. ELIGIBILITY FOR SPECIAL ECONOMIC DEVELOP-
MENT AND ADJUSTMENT ASSISTANCE.
Communities identified pursuant to section 102(a)(2)
shall be eligible to receive special economic development
and adjustment assistance under title IX of the Public
Works and Economic Development Act of 1965 (42
U.S.C. 3241 et seq.).
SEC. 702. FUNDING MATTERS.
(a) TRANSFER AUTHORITY.—The Council may trans-
fer funds under section 801(b)(4) of this Act to the De-
partment of Commerce for the purpose of providing assist-
ance under title IX of the Public Works and Economic
Development Act of 1965 to communities referred to in
section 701.
(b) OBLIGATION OF TRANSFERRED FUNDS.—Of the
amount transferred pursuant to subsection (a) for any fis-
cal year—
(1) at least 50 percent shall be obligated not
later than February 1 of that fiscal year; and
(2) at least 90 percent shall be obligated not
later than August 1 of that fiscal year.
TITLE VIII—DEFENSE ECONOMIC
ADJUSTMENT TRUST FUND
SEC. 801. ESTABLISHMENT AND USES OF FUND.
(a) ESTABLISHMENT.—There is established on the
books of the Treasury a fund to be known as the ‘‘Defense
Economic Adjustment Trust Fund’’ (hereafter in this sec-
tion referred to as the ‘‘Fund’’). The Fund shall be admin-
istered by the Secretary of the Treasury under the direc-
tion of the Presidential Council on Economic Diversifica-
tion and Adjustment established by section 101(a).
(b) USES OF FUND.—Sums in the Fund shall be
available for carrying out programs, projects, and activi-
ties, as the Council may direct, under—
(1) this Act;
(2) sections 301(f) and 302(d) of the Defense
Production Act of 1950 (50 U.S.C. App. 2091(f)
and 2092(d)), as added by sections 501 and 502;
(3) section 303 of that Act (50 U.S.C. App.
2093);
(4) section 310 of that Act, as added by section
503;
(5) title IX of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3241 et seq.);
and
(6) section 325 of the Job Training Partnership
Act (29 U.S.C. 1662d).
(c) SOURCE OF FUNDS.—There is authorized to be
appropriated to the Fund for each fiscal year the amount
equal to 10 percent of the difference between—
(1) the amount of the budget authority nec-
essary to support military personnel end strengths
for such fiscal year at the same levels as was pro-
vided for the preceding fiscal year; and
(2) the amount of the budget authority nec-
essary to support military personnel end strengths
for such fiscal year at the levels prescribed by law
for such fiscal year.
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