EXPANSION OF ADJUSTMENT ASSISTANCE AVAILABLE TO STATES AND LOCAL GOVERNMENTS FROM THE OFFICE OF ECONOMIC ADJUSTMENT.

SEC. 4301. EXPANSION OF ADJUSTMENT ASSISTANCE AVAILABLE TO STATES AND LOCAL GOVERNMENTS FROM THE OFFICE OF ECONOMIC ADJUSTMENT. (a) Operational Assistance.— Subsection (b) of section 2391 of title 10, United States Code, is amended— (1) by redesignating paragraph (4) as paragraph (5); and (2) by inserting after paragraph (3) the following new paragraph: “(4) (A) In the case of a State or local government eligible for assistance under paragraph (1), the Secretary of Defense may also make grants, conclude cooperative agreements, and supplement other Federal funds in order to assist the State or local government to carry out a community adjustment and economic diversification program (including State industrial extension or modernization efforts to facilitate the economic diversification of defense contractors and subcontractors) in addition to planning such a program. “(B) The Secretary shall establish criteria for the selection of community adjustment and economic diversification programs to receive assistance under subparagraph (A). Such criteria shall include a requirement that the State or local government agree— “(i) to provide not less than 10 percent of the funding for the program from non-Federal sources; “(ii) to provide business planning and market exploration services under the program to defense contractors and subcontractors that seek modernization or diversification assistance; and “(iii) to provide training, counseling, and placement services for members of the armed forces and dislocated defense workers. 106 STAT. 2697 “(C) The Secretary shall carry out this paragraph in coordination with the Secretary of Commerce.”. (b) Assistance Upon Closure of Private Defense Facilities.— (1) Subsection (b)(1) of such section is amended— (A) by striking out “, or (D)” and inserting in lieu thereof “, (D)”; (B) by striking out “or (C)” and inserting in lieu thereof “(C), or (E)”; and (C) by inserting before “if the Secretary” the following: “or (E) by the closure or the significantly reduced operations of a defense facility as the result of the merger, acquisition, or consolidation of the defense contractor operating the defense facility,”. (2) Subsection (b)(3) of such section is amended by inserting after “Defense spending,” the following: “the closure or significantly reduced operations of a defense facility,”. (3) Subsection (d) of such section is amended to read as follows: “(d) Definitions.—In this section: (1) The term ‘military installation’ means any camp post, station, base, yard, or other installation under the jurisdiction of a military department that is located within any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, or Guam. (2) The term ‘defense facility’ means any private facility producing goods or services pursuant to a defense contract.”. (c) Clerical Amendments.—Such section is further amended— (1) by inserting “Reuse Studies.—” after “(a)”; (2) by inserting “Adjustment and Diversification Assistance.—” after “(b)”; (3) by inserting “Annual Report.—” after “(c)”; and (4) by inserting “Assistance Subject to Appropriations.—” after “(e)”. (d) Advance Adjustment Planning.—During fiscal year 1993, the Secretary of Defense may make grants and other assistance available under section 2391(b) of title 10, United States Code, to assist a State or local government in planning community adjustments and economic diversification even though the State or local government currently fails to meet the criteria for assistance under such section if the Secretary determines that a substantial portion of the economic activity or population of the geographic area to be subject to the adjustment or diversification planning is dependent on Department of Defense expenditures. (e) Funding for Fiscal Year 1993.— (1) Of the amount authorized to be appropriated in section 301(5), $50,000,000 shall be available as community adjustment and economic diversification assistance under section 2391(b)(4) of title 10, United States Code, as added by subsection (a)(2). (2) The Secretary of Defense may use up to five percent of the amount described in paragraph (1) for the purpose of providing preparation assistance to those States intending to establish the types of programs for which assistance is authorized under such section. (3) Of the amount authorized to be appropriated to the Department of Defense in section 301(5) and made available for fiscal year 1993 for the Office of Economic Adjustment, $2,000,000 shall be made available for community adjustment and economic diversification assistance under subsection (d). 106 STAT. 2698 (f) Effect of Amendments on Efforts of Economic Development Administration.—Nothing in this section is intended to replace the efforts of the economic development program administered by the Economic Development Administration of the Department of Commerce.