1. (a) A local governmental entity is eligible for a grant under this program if the governing board determines that it represents an adversely affected defense community that requires assistance because of a significant loss of defense worker jobs attributed to the following event(s):

   1. (1) The proposed or actual establishment, realignment, or closure of a defense facility;
   2. (2) The cancellation or termination of a United States Department of Defense contract or the failure of the Department of Defense to proceed with an approved major weapons system program;
   3. (3) A publicly announced planned major reduction in Department of Defense spending that would directly and adversely affect the community;
   4. (4) The closure or a significant reduction of the operations of a defense facility as the result of a merger, acquisition, or consolidation of a defense contractor operating the facility.
2. (b) A local governmental entity is eligible for a grant under this program if the governing board determines that it represents a positively affected community as a result of the gain of new or expanded military missions and defense workers, including military and civilian personnel, as a result of the Base Realignment and Closure process.

3. (c) The loss of defense worker jobs is considered significant if, within the jurisdiction of the local governmental entity applying for the grant, a direct loss of defense worker jobs meets or exceeds the following:

   1. (1) 2,500 defense worker jobs in any area of the municipality or county that is located in an urbanized area of a metropolitan statistical area as defined by the United States Census Bureau;
   2. (2) 1,000 defense worker jobs in any area of the municipality or county that is not located in an urbanized area of a metropolitan statistical area as defined by the United States Census Bureau; or
   3. (3) A defense worker job loss of one percent of the jobs in the municipality or county. The percentage of job loss is arrived at by dividing the number of defense worker jobs lost or projected to be lost by the total civilian employment number in the municipality or county.

4. (d) The local governmental entity making application for the grant must provide adequate documentation of defense worker job loss during the period between the beginning of the federal fiscal year during which the event described in subsection (a) of this section is finally approved and the date that the event is substantially completed. In order to establish eligibility, this documentation must include:

   1. (1) Defense worker baseline data representing the number of defense workers employed during the fiscal year of the event described in subsection (a) of this section;
   2. (2) Number of defense worker jobs lost during the period between the fiscal year that the event was announced and the date the event is substantially complete;
   3. (3) Total number of people currently employed within the jurisdiction making application; and
   4. (4) Average defense worker salaries.

Source Note:The provisions of this §4.32 adopted to be effective November 25, 2009, 34 TexReg 8311.