DEFENSE DUAL-USE ASSISTANCE EXTENSION PROGRAM.

SEC. 4234. DEFENSE DUAL-USE ASSISTANCE EXTENSION PROGRAM. (a) Requirement for Program.—Subchapter IV of chapter 148, as amended by section 4233, is further amended by inserting after section 2523 the following: “§ 2524. Defense dual-use assistance extension program “(a) Establishment of Program.—The Secretary of Defense, in consultation and coordination with the Secretary of Energy and the Secretary of Commerce, shall establish a program to further 106 STAT. 2688the national security objectives set forth in section 2501(a) of this title and the defense reinvestment, diversification, and conversion program objectives set forth in section 2501(b) of this title by providing support to entities referred to in subsection (b) for programs described in that subsection. “(b) Programs Supported.— The Secretary may provide support under this section for programs sponsored by the Federal Government, regional entities, States, local governments, and private entities and nonprofit organizations that assist businesses economically dependent on Department of Defense expenditures to acquire dual-use capabilities through the provision under those programs of the following forms of assistance: “(1) Assistance in converting from government-oriented management, production, training, and marketing practices to commercial practices. “(2) Assistance in acquiring and using public and private sector resources, literature, and other information concerning— “(A) research, development, and production processes and practices; “(B) identification of technologies and products having the potential for defense and nondefense commercial applications; “(C) marketing practices and opportunities; “(D) identification of potential suppliers, partners, and subcontractors; “(E) identification of opportunities for government support, including support through grants, contracts, partnerships, and consortia; “(F) enhancement of work force skills and capabilities, including— “(i) development and introduction of high-performance work systems, workforce literacy programs, and programs for worker education and training; “(ii) other programs that build upon the skills and capabilities of the work force; and “(G) trade and export assistance. “(3) Loan guarantees to small businesses that are economically dependent on defense expenditures, under the terms and conditions specified under other applicable law. “(c) Assistance Authorized.— (1) The Secretary may make grants, enter into contracts, or enter into cooperative agreements and other transactions pursuant to section 2371 of this title. “(2) Subject to subsection (d), the Secretary may provide a program referred to in subsection (b) with technical and other assistance. “(3) The Secretary is authorized to carry out a program to provide assistance to small businesses that are economically dependent on defense expenditures to obtain access to a national network of scientists and engineers, and to information resources (including access through on-line data bases to local, national, and international technical and business literature encompassing a wide range of technologies), that can help minimize technical risk and thereby facilitate the development and commercialization of new products. “(d) Financial Commitment of Non-Department of Defense Participants.— (1) The Secretary shall ensure that the amount of funds provided by the Department of Defense for a program 106 STAT. 2689under this section does not exceed the maximum authorized percentage of the combined amount provided by the Department of Defense and all other sources of funding for the program for any year. “(2) The maximum authorized percentage of Department of Defense funding referred to in paragraph (1) for each year of Department of Defense assistance for a program under this section is as follows: “(A) 50 percent in the first year. “(B) 40 percent in the second year. “(C) 30 percent in the third and following years. “(e) Selection Process.—Competitive procedures shall be used in the selection of programs to receive assistance under this section. “(f) Selection Criteria.— The criteria for the selection of a program to receive assistance under this section shall include the following: “(1) The extent to which the program advances and enhances the national security objectives set forth in section 2501(a) of this title and the reinvestment, diversification, and conversion program objectives set forth in section 2501(b) of this title. “(2) The technical excellence of the program. “(3) The qualifications of the personnel proposed to participate in the program's research activities. “(4) The adequacy of timely private sector investment in activities that is sufficient to achieve the goals and objectives of the programs. “(5) The potential effectiveness of the program in the conversion of businesses (and their work forces) from capabilities that make the companies economically dependent on Department of Defense expenditures to capabilities having defense and nondefense commercial applications. “(6) The ability of the program to assist businesses (and their work forces) that are adversely affected by significant reductions in Department of Defense spending. “(7) The extent of the financial commitment by sources other than the Department of Defense. “(8) The extent to which the program would supplement, rather than duplicate, other available services. (9) The likelihood that, within five years after the commencement of assistance for a program under this section (or a lesser period established by the Secretary), Department of Defense assistance will not be necessary to sustain the program. “(10) Such other criteria as the Secretary prescribes. “(g) Termination of Authority.—After September 30, 1995, funds may be provided by the Department of Defense under this section only for programs referred to in subsection (b) for which funds have been provided by the Department of Defense under this section on or before that date. No funds may be provided by the Department of Defense under this section for a program referred to in subsection (b) after September 30, 1998.”. (b) Funding.— Of the amount authorized to be appropriated in section 201 for Defense Agencies, $200,000,000 shall be available for the defense dual-use extension program under section 2524 of title 10, United States Code (as added by subsection (a)), of which— 106 STAT. 2690 (1) $50,000,000 shall be available to provide support to regional, State, and local government programs; and (2) $75,000,000 shall be available tor programs designed to assist small businesses.