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nation of, or reduction in, the program is not likely to result
in plant closure or mass layoff. Any employee considered
to have received such notice under the preceding sentence
shall only be eligible to receive services under section 314(b)
of such Act and under paragraphs (1) through (14), (16),
and (18) of section 314(c) of such Act.
‘‘(f) WITHDRAWAL
OF NOTIFICATION UPON SUFFI-
CIENT FUNDING FOR PROGRAM TO CONTINUE.—
‘‘(1) NOTICE TO PRIME CONTRACTOR.—In any
case in which—
‘‘(A) the Secretary of Defense or Secretary
of Energy has provided a notification under sub-
section (a) with respect to a major defense pro-
gram based upon the budget of the President for
any fiscal year; and
‘‘(B) that Secretary determines, upon enact-
ment of an Act appropriating funds for the mili-
tary functions of the Department of Defense or
for national defense programs of the Department
of Energy for that fiscal year, as the case may
be, that due to a sufficient level of funding for
the program having been provided in that Act
there will not be a termination of, or substantial
reduction in, that program,
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that Secretary shall provide notice of withdrawal of
the notification provided under subsection (a) to each
prime contractor that received that notice under sub-
section (a). Any such notice of withdrawal shall be
provided as soon as reasonably practicable after the
date of the enactment of the appropriations Act con-
cerned. In any such case, the Secretary shall at the
same time provide general notice of such withdrawal
by publication in the Federal Register.
‘‘(2) NOTICE TO SUBCONTRACTORS.—As soon as
reasonably practicable after the date on which the
prime contractor for a major defense program receives
notice under paragraph (1) of the withdrawal of a
notification previously provided to the contractor
under subsection (a), and not more than 45 days after
that date, the prime contractor shall provide notice of
such withdrawal to each person that is a first-tier
subcontractor under a contract in an amount not less
than $500,000 for the program and shall require that
each such subcontractor provide such notice to each
subcontractor in an amount not less than $100,000 at
any tier in a contract.
‘‘(3) NOTICE TO EMPLOYEES.—As soon as rea-
sonably practicable after the date on which a prime
contractor receives notice of withdrawal under para-
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graph (1) or a subcontractor receives such notice
under paragraph (2), and not more than two weeks
after that date, the contractor or subcontractor shall
provide notice of such withdrawal—
‘‘(A) to each representative of employees
whose work is directly related to the defense con-
tract under the program and who are employed
by the contractor or subcontractor or, if there is
no such representative at that time, each such
employee;
‘‘(B) to the State dislocated worker unit or
office described in section 311(b)(2) of the Job
Training Partnership Act (29 U.S.C. 1661(b)(2))
and the chief elected official of the unit of general
local government within which the adverse effect
may occur; and
‘‘(C) to each grantee under section 325(a) or
325A(a) of the Job Training Partnership Act
providing training, adjustment assistance, and
employment services to an employee described in
this paragraph.
‘‘(4) LOSS OF ELIGIBILITY.—An employee who
receives notice of withdrawal under paragraph (2)
shall not be eligible for training, adjustment assist-
ance, and employment services under section 325 or
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325A of the Job Training Partnership Act beginning
on the date on which the employee receives the notice.
‘‘(g) TERMINATION AND OTHER REMEDIES FOR FAIL-
URE TO GIVE REQUIRED NOTICE.—A contractor that will-
fully fails to provide notice as required by any provision
of this section may be subject to termination for default of
the instant contract, suspension, or debarment, or other
remedies as determined by the Secretary of Defense or Sec-
retary of Energy, as appropriate.
‘‘(h) DEFINITIONS.—For purposes of this section:
‘‘(1) MAJOR
DEFENSE
PROGRAM.—The term
‘major defense program’ means—
‘‘(A) in the case of the Department of De-
fense, a program that is carried out to produce
or acquire a major system (as defined in section
2302(5) of title 10, United States Code); and
‘‘(B) in the case of the Department of En-
ergy, a program that meets the dollar threshold
criteria for treatment of a Department of Defense
program as a major system.
‘‘(2) SUBSTANTIAL REDUCTION.—The term ‘sub-
stantial reduction’, with respect to a major defense
program, means a reduction of 25 percent or more in
the total dollar value of contracts under the pro-
gram.’’.
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Subtitle E—National Shipbuilding
Initiative
SEC. 1351. SHORT TITLE.
This subtitle may be cited as the ‘‘National Shipbuild-
ing and Shipyard Conversion Act of 1993’’.
SEC. 1352. NATIONAL SHIPBUILDING INITIATIVE.
(a) ESTABLISHMENT OF PROGRAM.—There shall be a
National Shipbuilding Initiative program, to be carried out
to support the industrial base for national security objec-
tives by assisting in the reestablishment of the United States
shipbuilding industry as a self-sufficient, internationally
competitive industry.
(b) ADMINISTERING DEPARTMENTS.—The program
shall be carried out—
(1) by the Secretary of Defense, with respect to
programs under the jurisdiction of the Secretary of
Defense; and
(2) by the Secretary of Transportation, with re-
spect to programs under the jurisdiction of the Sec-
retary of Transportation.
(c) PROGRAM ELEMENTS.—The National Shipbuild-
ing Initiative shall consist of the following program ele-
ments:
(1) FINANCIAL INCENTIVES PROGRAM.—A finan-
cial incentives program to provide loan guarantees to
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initiate commercial ship construction for domestic
and export sales, encourage shipyard modernization,
and support increased productivity, as provided in
title XI of the Merchant Marine Act, 1936 (as amend-
ed by this subtitle).
(2) TECHNOLOGY
DEVELOPMENT
PROGRAM.—A
technology development program, to be carried out
within the Department of Defense by the Advanced
Research Projects Agency, to improve the technology
base for advanced shipbuilding technologies and relat-
ed dual-use technologies through activities including a
development program for innovative commercial ship
design and production processes and technologies.
(3) NAVY’S
AFFORDABILITY
THROUGH
COM-
MONALITY PROGRAM.—Enhanced support by the Sec-
retary of Defense for the shipbuilding program of the
Department of the Navy known as the Affordability
Through Commonality (ATC) program, to include en-
hanced support (A) for the development of common
modules for military and commercial ships, and (B)
to foster civil-military integration into the next gen-
eration of Naval surface combatants.
(4) NAVY’S MANUFACTURING TECHNOLOGY AND
TECHNOLOGY BASE PROGRAMS.—Enhanced support
by the Secretary of Defense for, and strengthened
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and Atmospheric Administration, appropriate naval
commands and activities, and other appropriate Fed-
eral agencies on—
(A) development and transfer to the private
sector of dual-use shipbuilding technologies, ship
repair technologies, and shipbuilding manage-
ment technologies;
(B) assessments of potential markets for
maritime products; and
(C) recommendation of industrial entities,
partnerships, joint ventures, or consortia for
short- and long-term manufacturing technology
investment strategies.
(2) Funding and program management activi-
ties to develop innovative design and production proc-
esses and the technologies required to implement those
processes.
(3) Facilitation of industry and Government
technology development and technology transfer ac-
tivities (including education and training, market as-
sessments, simulations, hardware models and proto-
types, and national and regional industrial base
studies).
(4) Integration of promising technology advances
made in the Technology Reinvestment Program of the
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Advanced Research Projects Agency into the National
Shipbuilding Initiative to effect full defense conver-
sion potential.
SEC. 1355. ELIGIBLE SHIPYARDS.
To be eligible to receive any assistance or otherwise
to participate in any program carried out under the Na-
tional Shipbuilding Initiative, a shipyard must be a pri-
vate shipyard located in the United States.
SEC. 1356. LOAN GUARANTEES FOR EXPORT VESSELS.
Title XI of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1271 et seq.) is amended as follows:
(1) ELIGIBLE EXPORT VESSEL DEFINED.—Sec-
tion 1101 is amended by adding at the end the follow-
ing new subsection:
‘‘(o) The term ‘eligible export vessel’ means a vessel
constructed, reconstructed, or reconditioned in the United
States for use in world-wide trade which will, upon delivery
or redelivery, be placed under or continued to be docu-
mented under the laws of a country other than the United
States.’’.
(2) 
LIMITATIONS
ON
GUARANTEE
OBLIGA-
TIONS.—Section 1103 is amended—
(A) by amending the first sentence of sub-
section (f) to read as follows: ‘‘The aggregate un-
paid principal amount of the obligations guar-
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anteed under this section and outstanding at
any one time shall not exceed $12,000,000,000, of
which (1) $850,000,000 shall be limited to obli-
gations pertaining to guarantees of obligations
for fishing vessels and fishery facilities made
under this title, and (2) $3,000,000,000 shall be
limited to obligations pertaining to guarantees of
obligations for eligible export vessels.’’; and
(B) by adding at the end the following new
subsection:
‘‘(g)(1) The Secretary may not issue a commitment to
guarantee obligations for an eligible export vessel unless,
after considering—
‘‘(A) the status of pending applications for com-
mitments to guarantee obligations for vessels docu-
mented under the laws of the United States and oper-
ating or to be operated in the domestic or foreign
commerce of the United States,
‘‘(B) the economic soundness of the applications
referred to in subparagraph (A), and
‘‘(C) the amount of guarantee authority avail-
able,
the Secretary determines, in the sole discretion of the Sec-
retary, that the issuance of a commitment to guarantee obli-
gations for an eligible export vessel will not result in the
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denial of an economically sound application to issue a com-
mitment to guarantee obligations for vessels documented
under the laws of the United States operating in the domes-
tic or foreign commerce of the United States.
‘‘(2) The Secretary may not issue commitments to
guarantee obligations for eligible export vessels under this
section after the later of—
‘‘(A) the 5th anniversary of the date on which
the Secretary publishes final regulations setting forth
the application procedures for the issuance of commit-
ments to guarantee obligations for eligible export ves-
sels,
‘‘(B) the last day of any 5-year period in which
funding and guarantee authority for obligations for
eligible export vessels have been continuously avail-
able, or
‘‘(C) the last date on which those commitments
may be issued under any treaty, convention, or other
international agreement entered into after the date of
the enactment of the Shipbuilding Conversion Act of
1993 that prohibits guarantee of those obligations.’’.
(3) AUTHORITY
TO
GUARANTEE
OBLIGATIONS
FOR ELIGIBLE EXPORT VESSELS.—Section 1104A is
amended—
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(A) by amending so much of subsection
(a)(1) as precedes the proviso to read as follows:
‘‘(1) financing, including reimbursement of an
obligor for expenditures previously made for, con-
struction, reconstruction, or reconditioning of a vessel
(including an eligible export vessel), which is designed
principally for research, or for commercial use (A) in
the coastwise or intercoastal trade; (B) on the Great
Lakes, or on bays, sounds, rivers, harbors, or inland
lakes of the United States; (C) in foreign trade as de-
fined in section 905 of this Act for purposes of title
V of this Act; or (D) as an ocean thermal energy con-
version facility or plantship; (E) with respect to float-
ing drydocks in the construction, reconstruction, re-
conditioning, or repair of vessels; or (F) with respect
to an eligible export vessel, in world-wide trade;’’;
(B) by amending subsection (b)(2)—
(i) by striking ‘‘subject to the provi-
sions of paragraph (1) of subsection (c) of
this section,’’ and inserting ‘‘subject to the
provisions of subsection (c)(1) and sub-
section (i),’’, and
(ii) by inserting before the semicolon at
the end the following: ‘‘: Provided, further
That in the case of an eligible export vessel,
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such obligations may be in an aggregate
principal amount which does not exceed
871⁄2 of the actual cost or depreciated actual
cost of the eligible export vessel’’;
(C) by amending subsection (b)(6) by in-
serting after ‘‘United States Coast Guard’’ the
following: ‘‘or, in the case of an eligible export
vessel, of the appropriate national flag authori-
ties under a treaty, convention, or other inter-
national agreement to which the United States is
a party’’;
(D) in subsection (d), by adding at the end
the following new paragraph:
‘‘(3) No commitment to guarantee, or guarantee
of an obligation may be made by the Secretary under
this title for the construction, reconstruction or recon-
ditioning of an eligible export vessel unless—
‘‘(A) the Secretary finds that the construc-
tion, reconstruction, or reconditioning of such el-
igible export vessel will aid in the transition of
United States shipyards to commercial activities
or will preserve shipbuilding assets that would be
essential in time of war or national emergency,
and
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‘‘(B) the owner of the eligible export vessel
agrees with the Secretary that the vessel shall not
be transferred to any country designated by the
Secretary as a country whose interests are hostile
to the interests of the United States.’’; and
(E) by adding at the end the following new
subsection:
‘‘(i) The Secretary may not, with respect to—
‘‘(1) the general 75 percent or less limitation in
subsection (b)(2);
‘‘(2) the 871⁄2 percent or less limitation in the
1st, 2nd, 4th, or 5th proviso to subsection (b)(2) or
section 1111(b); or
‘‘(3) the 80 percent or less limitation in the 3rd
proviso to such subsection;
establish by rule, regulation, or procedure any percentage
within any such limitation that is, or is intended to be,
applied uniformly to all guarantees or commitments to
guarantee made under this section that are subject to the
limitation.’’.
(4) LIMITATION ON AUTHORITY TO ESTABLISH
UNIFORM PERCENTAGE LIMITATION.—Section 1104B
is amended by adding at the end of subsection (b) the
following flush sentence: