DEFENSE CONVERSION ADJUSTMENT PROGRAM

SEC. 4202. DEFENSE CONVERSION ADJUSTMENT PROGRAM Part B of title III of the Job Training Partnership Act (29 U.S.C. 1662–1662c) is amended by adding at the end the following new section: “defense conversion adjustment program “Sec. 325. (a) In General.— From the amount appropriated pursuant to section 4203 of the Defense Economic Adjustment, Diversification, Conversion, and Stabilization Act of 1990, the Secretary may make grants to States, substate grantees, employers, employer associations, and representatives of employees to provide training, adjustment assistance, and employment services to eligible employees adversely affected by reductions in expenditures by the United States for defense or by closures of United States military facilities. For purposes of this section, an eligible employee is an eligible dislocated worker as defined in section 301(a) who has been terminated or laid off, or has received a notice of termination or lay off, as a consequence of reductions in expenditures by the United States for defense or by closures of United States military facilities as determined in accordance with regulations of the Secretary. “(b) Application.— In reviewing applications for grants under subsection (a), the Secretary shall give priority to applications from areas which have the greatest number of eligible employees. “(c) Use of Funds.— Grants under subsection (a) may be used for any purpose for which funds may be used under section 314 or this part. “(d) Demonstration Projects.— In carrying out the grant program established under subsection (a), the Secretary may make grants to entities referred to in that subsection for the purpose of developing demonstration projects to encourage and promote innovative responses to the dislocation resulting from reductions in expenditures by the United States for defense or by the closure of United States military installations. Such demonstration projects may include— “(1) projects to facilitate the placement of eligible employees in occupations experiencing skill shortages that will make use of the skills acquired by the eligible employees during their employment; 104 STAT. 1853 “(2) projects to assist in retraining and reorganization efforts designed to avert layoffs that would otherwise occur as a result of such reductions or closures; and “(3) projects to assist communities in addressing and reducing the impact of such economic dislocation.”.