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 commu-
nities, businesses, and workers adversely affected by the
closure or realignment of military installations.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Comprehensive Base Closure Reform and Recovery Act
of 1993’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
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.
TITLE I—ENVIRONMENTAL RES-
TORATION AT MILITARY IN-
STALLATIONS TO BE CLOSED
SEC. 101. CLEANUP SCHEDULE FOR CERTAIN BASES ON
SUPERFUND NATIONAL PRIORITIES LIST.
(a) CLEANUP SCHEDULE FOR CERTAIN BASES ON
NATIONAL PRIORITIES LIST.—(1) Before a military in-
stallation described in subsection (c) is closed or substan-
tial reductions in its operations have occurred, at least 75
percent of the remedial action required on the installation
pursuant to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601
et seq.) shall be completed.
(2) Not later than two years after a military installa-
tion described in subsection (c) is closed or substantial re-
ductions in its operations have occurred, all of the reme-
dial action required on the installation pursuant to such
Act shall be completed.
(b) MEANING OF SUBSTANTIAL REDUCTIONS.—For
purposes of subsection (a), substantial reductions in the
operations of a military installation shall be considered to
have occurred if more than 50 percent of the personnel
assigned to the installation, including employees and mem-
bers of the Armed Forces, have been reassigned and
moved to another installation.
(c) APPLICABILITY.—This section applies to each
military installation—
(1) which is on the National Priorities List
under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9601 et seq.); and
(2) which is to be closed pursuant to title II of
the Defense Authorization Amendments and Base
Closure and Realignment Act (Public Law 100–526;
10 U.S.C. 2687 note), pursuant to the Defense Base
Closure and Realignment Act of 1990 (part A of
title XXIX of Public Law 101–510; 10 U.S.C. 2687
note), or otherwise by the Department of Defense.
(d) DEFINITION.—For purposes of this section, the
term ‘‘remedial action’’ has the meaning given that term
by section 101 of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 et seq.).
TITLE II—TAX INCENTIVES RE-
LATING TO FEDERAL MILI-
TARY BASE CLOSURES AND
REALIGNMENTS
SEC. 201. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms
of an amendment to or repeal of a section or other provi-
sion, such amendment or repeal shall be treated as made
to a section or other provision of the Internal Revenue
Code of 1986.
SEC. 202. HIRING AND INVESTMENT INCENTIVES.
(a) IN GENERAL.—Chapter 1 (relating to normal tax
and surtax rules) is amended by inserting after subchapter
T the following new subchapter:
‘‘Subchapter U—Tax Incentives Relating to
Closed Federal Military Installations
‘‘Part I. Definitions.
‘‘Part II. Hiring incentives.
‘‘Part III. Investment incentives.
‘‘PART I—DEFINITIONS
‘‘Sec. 1391. Definitions.
‘‘SEC. 1391. DEFINITIONS.
‘‘(a) APPLICABLE FEDERAL MILITARY INSTALLA-
TION.—For purposes of this subchapter, the term ‘appli-
cable Federal military installation’ means a Federal mili-
tary installation or other facility which is closed or re-
aligned under—
‘‘(1) the Defense Base Closure and Realign-
ment Act of 1990 (10 U.S.C. 2687 note),
‘‘(2) title II of the Defense Authorization
Amendments and Base Closure and Realignment
Act (10 U.S.C. 2687 note), or
‘‘(3) section 2687 of title 10, United States
Code.
‘‘(b) TERMINATED EMPLOYEE.—For purposes of this
subchapter—
‘‘(1) IN GENERAL.—The term ‘terminated em-
ployee’ means an individual who is certified, under
procedures similar to the procedures described in
section 51(d)(16), as being an individual (whether or
not a Federal employee)—
‘‘(A) who was employed on an applicable
Federal military installation, and
‘‘(B) whose job was terminated by reason
of the closing or realignment of such installa-
tion.
‘‘(2) LIMITATION.—An individual shall not be
treated as a terminated employee with respect to any
job termination after the later of—
‘‘(A) the close of the 2nd calendar year fol-
lowing the calendar year in which the an-
nouncement of the job termination occurs, or
‘‘(B) the close of the 1-year period begin-
ning with the date on which the employee first
begins work for any employer after the job
termination.
‘‘PART II—HIRING INCENTIVES
‘‘Sec. 1392. Targeted jobs credit.
‘‘SEC. 1392. TARGETED JOBS CREDIT.
‘‘For purposes of section 38, a terminated employee
shall be treated as a member of a targeted group for pur-
poses of determining the targeted jobs credit under section
51.
‘‘PART III—INVESTMENT INCENTIVES
‘‘Sec. 1393. Capital incentives.
‘‘SEC. 1393. CAPITAL INCENTIVES.
‘‘(a) REDUCTION
IN
RECOVERY
PERIOD
FOR
NONRESIDENTIAL
REAL
AND
RESIDENTIAL
RENTAL
PROPERTY.—
‘‘(1) IN
GENERAL.—For purposes of section
168, the applicable recovery period—
‘‘(A) for any qualified nonresidential real
property shall be 21.5 years, and
‘‘(B) for any qualified residential rental
property shall be 17.5 years.
‘‘(2) QUALIFIED PROPERTY.—For purposes of
paragraph (1), the term ‘qualified nonresidential
real property’ or ‘qualified residential rental prop-
erty’ means nonresidential real property (as defined
in section 168(e)(2)(B)) or residential rental prop-
erty (as defined in section 168(e)(2)(A)), whichever
is applicable, which—
‘‘(A) is located on an applicable Federal
military installation,
‘‘(B) is used by the taxpayer predomi-
nantly in the active conduct of a trade or busi-
ness on such installation, and
‘‘(C) is placed in service by the taxpayer
during the 15-year period beginning on the date
of the announcement of the closure or realign-
ment of such installation.
‘‘(b) INCREASE IN AMOUNT WHICH MAY BE EX-
PENSED.—
‘‘(1) IN GENERAL.—In the case of qualified sec-
tion 179 property—
‘‘(A) the limitation under subsection (b)(1)
of section 179 with respect to such property
shall be equal to the amount determined under
paragraph (2), and
‘‘(B) subsection (b)(2) of section 179 shall
not apply with respect to such property.
‘‘(2) AMOUNT WHICH MAY BE EXPENSED.—For
purposes of paragraph (1)(A), the amount under
this paragraph shall be equal to the excess (if any)
of—
‘‘(A) the lesser of—
‘‘(i) 25 percent of the cost of the
qualified section 179 property (or, if great-
er, $10,000), or
‘‘(ii) $200,000, over
‘‘(B) the cost of section 179 property for
the taxable year which is not qualified section
179 property.
‘‘(3) QUALIFIED PROPERTY.—For purposes of
this subsection—
‘‘(A) IN
GENERAL.—The term ‘qualified
section 179 property’ means section 179 prop-
erty which is used by the taxpayer predomi-
nantly in the active conduct of a trade or busi-
ness on an applicable Federal military installa-
tion.
‘‘(B) EXCEPTIONS.—The term ‘qualified
section 179 property’ does not include—
‘‘(i) property which is used or located
outside of an applicable Federal military
installation on any regular basis, or
‘‘(ii) property the original use of
which commences with the taxpayer after
the close of the 15-year period beginning
on the date of the announcement of the
closing or realignment of such installation.
‘‘(C) OTHER
TERMS.—The terms ‘cost’
and ‘section 179 property’ have the meanings
given such terms by section 179.
‘‘(c) RELATED PARTIES.—
‘‘(1) IN GENERAL.—No property shall be treat-
ed as qualified nonresidential real property, qualified
residential rental property, or qualified section 179
property if it is acquired (directly or indirectly) by
‘‘(1) IN GENERAL.—If, during any taxable year,
property which is qualified nonresidential real prop-
erty, qualified residential rental property, or quali-
fied section 179 property—
‘‘(A) is disposed of other than to a person
who is to continue the use of such property as
qualified property, or
‘‘(B) in the case of qualified section 179
property, is removed from the applicable Fed-
eral military installation, or otherwise ceases to
be used in the active conduct of a trade or busi-
ness on such installation,
the tax under this chapter for such taxable year
shall be increased by the amount described in para-
graph (2).
‘‘(2) AMOUNT OF INCREASE.—The increase in
tax under paragraph (1) shall equal the amount
which bears the same ratio to the aggregate decrease
in the tax for all prior taxable years which resulted
solely from the application of this section to the
property as the number of taxable years that the
property was held by the taxpayer bears to the appli-
cable recovery period for such property under section
312(k).’’
(b) CONFORMING AMENDMENT.—The table of sub-
chapters for chapter 1 is amended by inserting after the
item relating to subchapter T the following new item:
‘‘SUBCHAPTER U. Tax incentives relating to closed Federal mili-
tary installations.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
SEC. 203. TREATMENT OF AMOUNTS PAID ON ACCOUNT OF
MILITARY BASE CLOSINGS.
(a) IN GENERAL.—Section 1034 (relating to rollover
of gain on sale of principal residence) is amended by redes-
ignating subsection (l) as subsection (m) and by inserting
after subsection (k) the following new subsection:
‘‘(l) TREATMENT OF AMOUNTS PAID ON ACCOUNT
OF MILITARY BASE CLOSINGS.—Amounts received under
section 1013(c)(1) of the Demonstration Cities and Metro-
politan 
Development 
Act 
of 
1966 
(42 
U.S.C.
3374(c)(1))—
‘‘(1) shall be treated for purposes of this chap-
ter as part of the amount realized on the sale of the
residence, and
‘‘(2) shall not be treated for purposes of this
title as compensation for services.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to amounts received in taxable
years beginning after December 31, 1993.
TITLE III—ECONOMIC ADJUST-
MENT AND CONVERSION AS-
SISTANCE
SEC. 301. AUTHORIZATION OF APPROPRIATIONS FOR COM-
MUNITY ECONOMIC ADJUSTMENT ASSIST-
ANCE AND EMPHASIS ON PROVIDING SUCH
ASSISTANCE TO THE MOST SERIOUSLY AF-
FECTED COMMUNITIES.
(a) PRIORITY FOR THE MOST SERIOUSLY AFFECTED
COMMUNITIES.—Subsection (a) of section 4103 of the De-
fense Economic Adjustment, Diversification, Conversion,
and Stabilization Act of 1990 (division D of Public Law
101–510; 104 Stat. 1851) is amended by adding at the
end the following new sentences: ‘‘In making economic ad-
justment assistance available under this section, the Eco-
nomic Development Administration shall ensure that
funds are reserved for communities identified as the most
substantially and seriously affected by the closure or re-
alignment of a military installation or the curtailment,
completion, elimination, or realignment of a major defense
contract or subcontract. The Administration shall identify
such communities through the use of objective evidence,
such as increasing unemployment.’’.
(b) AUTHORIZATION
OF
APPROPRIATIONS.—Sub-
section (b) of such section is amended by striking out the
first sentence and inserting in lieu thereof the following:
‘‘There are authorized to be appropriated to the Secretary
of Defense to carry out subsection (a) $200,000,000 for
each of the fiscal years 1994 through 1996.’’.
SEC. 302. LOAN GUARANTY PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Defense
shall establish a program to guarantee loans made by ap-
proved lenders to civilian employees of the Department of
Defense employed at or in connection with a military in-
stallation in the United States to be closed or realigned
pursuant to the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101–
510; 10 U.S.C. 2687 note) or title II of the Defense Au-
thorization Amendments and Base Closure and Realign-
ment Act (Public Law 100–526; 10 U.S.C. 2687 note).
(b) AMOUNT OF GUARANTY.—The total amount of
loans guaranteed under subsection (a) for an employee re-
ferred to in that subsection may not exceed $10,000.
(c) APPLICATION FOR GUARANTY.—An employee re-
ferred to subsection (a) shall submit an application to the
Secretary, in such form and manner as the Secretary may
require, to receive a loan guaranty under that subsection.
Subject to the approval of the Secretary, the employee
may designate the loan to which the guaranty shall apply.
The designation of a loan may not be changed after a cer-
tificate of guaranty is issued for the loan until the loan
is completely paid.
(d) CERTIFICATE OF GUARANTY.—When a loan is
guaranteed under this section, the Secretary shall provide
the lender with a loan guaranty certificate or other evi-
dence of the guaranty. The lender may require the certifi-
cate as a condition of making the loan.
(e) APPROVED LENDERS.—A loan may be guaran-
teed under this section only if made—
(1) by a Federal land bank, national bank,
State bank, private bank, building and loan associa-
tion, insurance company, credit union, or mortgage
and loan company, that is subject to examination
and supervision by an agency of the United States
or of a State; or
(2) by any other lender approved by the Sec-
retary under standards established by the Secretary.
(f) DEFAULT.—In the event of default in the pay-
ment of a loan guaranteed under this section, the holder
of the obligation shall notify the Secretary. Upon receipt
of that notice, the Secretary shall pay to the holder an
amount equal to the amount of the loan in default or the
amount of originally guaranteed, whichever is less. The
Secretary shall be subrogated to the rights of the holder
to the extent of the amount paid by the Secretary.
SEC. 303. INCREASE IN AVERAGE AMOUNT OF ECONOMIC
PLANNING GRANTS PROVIDED BY THE OF-
FICE OF ECONOMIC ADJUSTMENT.
Section 2391(b) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(6) In the case of a State or local government di-
rectly and adversely affected by the closure of a military
installation, the average amount of assistance made avail-
able under paragraph (1) to that State or local govern-
ment for planning community adjustments and economic
diversification in consequence of that closure shall not be
less than $250,000 per year during the course of that clo-
sure.’’.
SEC. 304. ADJUSTMENT ASSISTANCE FOR EMPLOYEES.
Section 4203(a) of the Defense Economic Adjust-
ment, Diversification, Conversion, and Stabilization Act of
1990 (division D of Public Law 101–510; 104 Stat. 1853)
is amended by inserting after ‘‘fiscal year 1991’’ the fol-
lowing: ‘‘and $250,000,000 for each of the fiscal years
1994 through 1996.’’.
SEC. 305. CONVEYANCE OF CLOSED BASES TO NEIGHBOR-
ING COMMUNITIES.
(a) FINDINGS AND PURPOSES.—(1) The Congress
finds the following:
(A) The Department of Defense has been di-
rected to reduce the size and cost of the military and
this can only be accomplished by closing military
installations.
(B) A military installation is a part of the in-
frastructure of the community in which it is located
and there is a long standing symbiotic relationship
between a military installation and the community.
(C) The people in an impacted community have
made substantial, long term investments of time,
training, and wealth to support the military installa-
tion.
(D) The loss to an impacted community when
a military installation is closed may be substantial
and in such cases the Congress wishes to mitigate
the damage to the impacted community.
(E) An impacted community knows best the
needs of the community and the best way to use
available resources to meet these needs consistent
with existing national priorities.
(F) Unfettered ownership of the real property
associated with a closed military installation at the
earliest possible time can partially offset the loss to
a community which results when a military installa-
tion is closed.
(2) The purposes of this section are as follows:
(A) To benefit communities impacted signifi-
cantly when a military installation located in such
communities is closed by authorizing the real and
excess related personal property on which the mili-
tary installations are located to be conveyed to the
impacted community as soon as possible after a deci-
sion to close the military installation is made but no
later than 180 days after closure.
(B) To provide significantly impacted commu-
nities a resource which will aid in mitigating the loss
incurred by the community following a decision to
close a military installation and which may be used
by the impacted community, as the community
deems appropriate, for industrial, commercial, resi-
dential, recreational, or public uses.
(b) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Secretary of Defense shall convey to an
eligible political subdivision or subdivisions of a State or
to the State in accordance with this section all right, title,
and interest of the United States in the military installa-
tion closed pursuant to a base closure law.
(c) ADVANCE NOTICE TO ELIGIBLE STATES AND PO-
LITICAL SUBDIVISIONS.—As soon as practicable after a
military installation has been identified for closure, but in
any event not later than the date on which the installation
is closed, the Secretary shall transmit to the appropriate
State, and political subdivisions, communities, and coun-
ties of the State to which property at such installation may
be conveyed pursuant to this section, advance notification
of the Secretary’s intention to make a conveyance of the
property of the installation.
(d) ELIGIBLE STATES
AND POLITICAL SUBDIVI-
SIONS.—Property at a military installation that is to be
conveyed under subsection (b) shall be conveyed to a polit-
ical subdivision or subdivisions or State in the following
order of priority:
(1) The Secretary shall convey the property to
a political subdivision of a State that is designated
in State law to receive the conveyance of such prop-
erty and accepts the conveyance.
(2) If there is no political subdivision des-
ignated to receive the property pursuant to para-
graph (1), the Secretary shall convey the property to
the State in which the property is located if the law
of that State designates the State to receive the con-
veyance of such property and the State accepts the
conveyance.
(3) In the case of any real property for which
neither a State nor a political subdivision of a State
is designated pursuant to paragraph (1) or (2), the
Secretary shall consult with appropriate State and
local officials to determine the distribution of the
property that would best serve the interests of the
residents of the State and affected political subdivi-
sions of the State. The Secretary shall convey the
property in accordance with the determination made
under this paragraph if the selected political subdivi-
sion or subdivisions agree to accept the property.
(4) In the case of any real property that is not
accepted under the preceding paragraphs, the Sec-
retary shall offer the property to other departments
and agencies of the Federal Government.
(e) PROPERTY TO BE CONVEYED.—In addition to
the conveyance of real property to a State or political sub-
division pursuant to this section, the Secretary shall con-
vey any related personal property that the Secretary deter-
mines is appropriate for use by the recipient in connection
with the recipient’s use of the real property. Pending such
conveyance, the Secretary shall maintain the real property
and personal property to prevent the deterioration of the
property.
(f) CONSIDERATION NOT TO BE REQUIRED.—No
consideration may be required for a conveyance of prop-
erty pursuant to this section.
(g) WAIVER AUTHORITY.—(1) Subject to paragraph
(3), the President may waive in whole or in part the re-
quirement to convey property at a military installation
under subsection (b) if the President—
(A) determines that the continuation of the
United States interest in such property—
(i) is vital to national security interests; or
(ii) the value of the installation is so high
that a conveyance to the political subdivision or
State would constitute an undue windfall to the
community and would not be necessary for the
economic recovery of the region; and
(B) transmits to Congress a certification of
such determinations together with the reasons for
such determinations.
(2) The total number of waivers made under para-
graph (1) may not exceed five military installations for
each package of closures approved by Defense Base Clo-
sure And Realignment Commission under a base closure
Law, except that a waiver in part shall not count against
this total if the value of the property reserved does not
exceed 25 percent of the total value of such installation
or if the appropriate political subdivision or State agrees
with the reservation.
(3) A determination and certification in the case of
the closure of any military installation shall be effective
only if made before the earlier of—
(A) the date on which the installation is closed;
or
(B) December 31 of the year following the year
in which the closure of that installation is approved
by the President.
(4) The President may extend the deadline for mak-
ing a determination and certification under paragraph (3)
for not more than two successive periods of 90 days by
transmitting to Congress a notification of the extension
before the end of the deadline or extended deadline, as
the case may be.
(5) The President may withdraw a waiver under
paragraph (1) in the case of any military installation. Not
later than 180 days after the withdrawal of the waiver,
the Secretary of Defense shall make the conveyance re-
quired by subsection (b) in accordance with this section.
(h) CONTINUING RESPONSIBILITY OF THE DEPART-
MENT OF DEFENSE.—Prior to and after any conveyance
of real property of a closed military installation pursuant
to this section, the Secretary of Defense, in consultation
with the appropriate political subdivision or State, shall
be responsible for providing economic adjustment and
community planning assistance (including assistance in
conducting public hearings to decide the appropriate use
of a closed military installation) to communities near the
closed military installation until such time as the economic
stability of such communities is achieved, as determined
by the Secretary.
(i) SOURCES OF FUNDING.—The Secretary may ex-
pend any funds in a base closure account to carry out the
responsibilities referred to in subsection (h). The Sec-
retary shall notify Congress in advance of the obligation
of funds for such purpose.
(j) IMPROVEMENT OF PROPERTY PENDING CONVEY-
ANCE.—(1) Notwithstanding any other provision of law,
the Secretary of Defense and the head of any other de-
partment or agency of the Federal Government may con-
tinue, on and after the applicable date referred to in para-
graph (2), to obligate funds (to the extent available) for
making improvements to the property that has not been
conveyed that will facilitate the conveyance of the property
and are consistent with the use to be made of the property
by the recipient of the conveyance.
(2) Paragraph (1) applies in the case of property at
a military installation on and after the date on which the
closure of that installation is approved by the President.
(k) DEFINITIONS.—For purposes of the section:
(1) The term ‘‘military installation’’ has the
meaning given such term in section 2687(e)(1) of
title 10, United States Code.
(2) The term ‘‘base closure law’’ means the
following:
(A) The Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of
Public Law 101–510; 10 U.S.C. 2687 note).
(B) Title II of the Defense Authorization
Amendments and Base Closure and Realign-
ment Act (Public Law 100–526; 10 U.S.C.
2687 note).
(C) Section 2687 of title 10, United States
Code.
(3) The term ‘‘base closure account’’ means the
following:
(A) The Department of Defense Base Clo-
sure Account, as established by section 207(a)
of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law
100–526; 10 U.S.C. 2687 note).
(B) The Department of Defense Base Clo-
sure Account 1990, as established by section
2906 of the Defense Base Closure and Realign-
ment Act of 1990 (part A of title XXIX of
Public Law 101–510; 10 U.S.C. 2687 note).
SEC. 306. PREFERENCE FOR LOCAL AND SMALL BUSI-
NESSES.
(a) PREFERENCE REQUIRED.—In entering into con-
tracts with private entities as part of the closure or re-
alignment of a military installation under a base closure
law, the Secretary of Defense shall give preference, to the
greatest extent practicable, to businesses located in the vi-
cinity of the installation and small business concerns. Con-
tracts for which this preference shall be given shall include
contracts to carry out activities for the environmental res-
toration and mitigation at a military installation to be
closed or realigned.
(b) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘small business concern’’ has the
meaning given such term in section 3 of the Small
Business Act (15 U.S.C. 632).
(2) The term ‘‘base closure law’’ means the
following:
(A) The Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of
Public Law 101–510; 104 Stat. 1808; 10
U.S.C. 2687 note).
(B) Title II of the Defense Authorization
Amendments and Base Closure and Realign-
ment Act (Public Law 100–526; 10 U.S.C.
2687 note).
(C) Section 2687 of title 10, United States
Code.
SEC. 307. EXPANSION OF HOMEOWNERS ASSISTANCE PRO-
GRAM TO INCLUDE EMPLOYEES OF LOCAL
EDUCATIONAL 
AGENCIES 
ADVERSELY 
AF-
FECTED BY BASE CLOSURES.
(a) AVAILABILITY OF HOMEOWNERS ASSISTANCE.—
The Secretary of Defense shall make available assistance
under section 1013(c) of the Demonstration Cities and
Metropolitan Development Act of 1966 (42 U.S.C.
3374(c)) to eligible school employees of a local educational
agency that operates schools in which—
(1) students are enrolled who are dependent
children of members of the Armed Forces or of civil-
ian employees of the Department of Defense;
(2) enrollments of such students will decline as
a result of the closure of a military installation at
which the parents of such students are stationed or
employed; and
(3) at the time of the public announcement of
the closure of the military installation, such students
account for not less than 80 percent of the entire
student population of such schools.
(b) ELIGIBILITY CRITERIA FOR SCHOOL EMPLOY-
EES.—A school employee of a local educational agency de-
scribed in subsection (a) shall be eligible for the benefits
of section 1013(c) of the Demonstration Cities and Metro-
politan Development Act of 1966 if the school employee—
(1) at the time of the public announcement of
the closure of the military installation—
(A) is the owner-occupant of a dwelling
that is situated near the military installation;
and
(B) is employed by the local educational
agency; and
(2) after such announcement—
(A) is terminated or voluntarily released
from employment with the local educational
agency as a result of actual or anticipated en-
rollment reductions caused by the closure of the
military installation, as determined by the Sec-
retary; and
(B) relocates beyond normal commuting
distance of the owned dwelling or is unemployed
(not as a matter of personal choice) and able to
demonstrate to the Secretary such financial
hardship as to be unable to meet mortgage pay-
ments and related expenses as a result of that
unemployment.
(c) APPLICATION.—The Secretary shall establish by
rule an application procedure by which school employees
of a local educational agency described in subsection (a)
may apply for benefits under section 1013(c) of the Dem-
onstration Cities and Metropolitan Development Act of
1966. The rules shall include the time period after the
public announcement of the closure of a military installa-
tion within which such applications must be submitted.
(d) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘local educational agency’’ has
the meaning given that term in section 1471(12) of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 2891(12)).
(2) The term ‘‘military installation’’ has the
meaning given that term in section 2687 of title 10,
United States Code.
(3) The term ‘‘school employee’’ includes a su-
perintendent, administrator, teacher, or custodial
and other support person employed by a local edu-
cational agency.
(4) The term ‘‘Secretary’’ means the Secretary
of Defense.
(e) EFFECTIVE DATE.—This section shall apply with
respect to closures of military installations under the De-
fense Base Closure and Realignment Act of 1990 (part
A of title XXIX of Public Law 101–510; 104 Stat. 1808;
10 U.S.C. 2687 note) and title II of Defense Authoriza-
tion Amendments and Base Closure and Realignment Act
(Public Law 100–526; 102 Stat. 2627; 10 U.S.C. 2687
note) announced before, on, or after the date of the enact-
ment of this Act.
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