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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 702 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 702

  To require that any amount of cost savings under a defense contract 
realized by the Federal Government as a result of the consolidation of 
contractors that causes the elimination of jobs in a community be used 
   for job retraining and job creation activities in that community.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 1995

  Mr. Filner introduced the following bill; which was referred to the 
 Committee on National Security and, in addition, to the Committee on 
Economic and Educational Opportunities, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To require that any amount of cost savings under a defense contract 
realized by the Federal Government as a result of the consolidation of 
contractors that causes the elimination of jobs in a community be used 
   for job retraining and job creation activities in that community.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

        This Act may be cited as the ``Displaced Defense Worker Act of 
1995''.

SEC. 2. REQUIREMENT TO USE CERTAIN DEFENSE CONTRACT COST SAVINGS FOR 
              JOB RETRAINING AND JOB CREATION ACTIVITIES.

    (a) Requirement.--If a contractor carrying out a contract described 
in subsection (b) achieves cost savings in carrying out the contract, 
and such cost savings are the result of the contractor consolidating 
its operations with another entity in a manner that causes the 
elimination of jobs in the community in which the contractor was 
carrying out the contract, then the Secretary of Defense shall deposit 
an amount equal to the Secretary's portion of such savings into the 
trust fund established under section 2.
    (b) Contracts Covered.--Subsection (a) applies to any contract 
entered into by the Department of Defense after the date of the 
enactment of this Act that requires that a portion of any cost savings 
achieved by the contractor in carrying out the contract be returned to 
the Department of Defense.

SEC. 3. JOB RETRAINING AND JOB CREATION ACTIVITIES.

    The Secretary of Labor shall use amounts appropriated from the 
Displaced Defense Worker Trust Fund for the following purposes:
            (1) Job retraining activities.--Job retraining assistance 
        under the Job Training Partnership Act (29 U.S.C. 1501 et 
        seq.).
            (2) Job creation activities.--Financial assistance provided 
        under the Public Works and Economic Development Act of 1965 (42 
        U.S.C 3121 et seq.).

SEC. 4. DISPLACED DEFENSE WORKER TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the ``Displaced Defense 
Worker Trust Fund'' (in this section referred to as the ``Trust 
Fund''), consisting of such amounts as may be appropriated or credited 
to such Trust Fund as provided in this section.
    (b) Transfers to Trust Fund.--(1) There are hereby appropriated to 
the Trust Fund amounts equivalent to amounts received by the Secretary 
of Defense as cost savings from defense contracts covered by section 1.
    (2) The amounts appropriated by paragraph (1) shall be transferred 
at least monthly from the general fund of the Treasury to the Trust 
Fund on the basis of estimates made by the Secretary of the Treasury of 
the amounts referred to in such paragraph. Adjustments shall be made in 
the amounts subsequently transferred to the extent prior estimates were 
more or less than the amounts required to be transferred.
    (c) Expenditures for Job Retraining and Job Creation.--Amounts in 
the Trust Fund shall be available, as provide by appropriation Acts, 
only for purposes of making expenditures to carry out section 2 of this 
Act.
    (d) Management of Trust Fund.--
            (1) Investment.--
                    (A) In general.--The Secretary of the Treasury 
                shall invest such portion of the Trust Fund as is not, 
                in his judgment, required to meet current withdrawals. 
                Such investments may be made only in interest-bearing 
                obligations of the United States and may be acquired--
                            (i) on original issue at the issue price, 
                        or
                            (ii) by purchase of outstanding obligations 
                        at the market price.
                    (B) Sale of obligations.--Any obligation acquired 
                by the Trust Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    (C) Interest of certain proceeds.--The interest on, 
                and the proceeds from the sale or redemption of, any 
                obligations held in the Trust Fund shall be credited to 
                and form a part of the Trust Fund.
            (2) Report.--It shall be the duty of the Secretary of the 
        Treasury to hold the Trust Fund and to report to the Congress 
        each year on the financial condition and the results of the 
        operations of the Trust Fund during the preceding fiscal year 
        and on its expected condition and operations during the next 5 
        fiscal years.
                                 <all>
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