I

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Displaced Defense

5 Worker Act of 1995’’.
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1 SEC. 2. REQUIREMENT TO USE CERTAIN DEFENSE CON2 TRACT COST SAVINGS FOR JOB RETRAINING

3 AND JOB CREATION ACTIVITIES.

4 (a) REQUIREMENT.—If a contractor carrying out a

5 contract described in subsection (b) achieves cost savings

6 in carrying out the contract, and such cost savings are

7 the result of the contractor consolidating its operations

8 with another entity in a manner that causes the elimi9 nation of jobs in the community in which the contractor

10 was carrying out the contract, then the Secretary of De11 fense shall deposit an amount equal to the Secretary’s por12 tion of such savings into the trust fund established under

13 section 2.

14 (b) CONTRACTS COVERED.—Subsection (a) applies to

15 any contract entered into by the Department of Defense

16 after the date of the enactment of this Act that requires

17 that a portion of any cost savings achieved by the contrac18 tor in carrying out the contract be returned to the Depart19 ment of Defense.

20 SEC. 3. JOB RETRAINING AND JOB CREATION ACTIVITIES.

21 The Secretary of Labor shall use amounts appro22 priated from the Displaced Defense Worker Trust Fund

23 for the following purposes:

24 (1) JOB RETRAINING ACTIVITIES.—Job retrain25 ing assistance under the Job Training Partnership

26 Act (29 U.S.C. 1501 et seq.).
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1 (2) JOB CREATION ACTIVITIES.—Financial as2 sistance provided under the Public Works and Eco3 nomic Development Act of 1965 (42 U.S.C 3121 et

4 seq.).

5 SEC. 4. DISPLACED DEFENSE WORKER TRUST FUND.

6 (a) ESTABLISHMENT.—There is established in the

7 Treasury of the United States a trust fund to be known

8 as the ‘‘Displaced Defense Worker Trust Fund’’ (in this

9 section referred to as the ‘‘Trust Fund’’), consisting of

10 such amounts as may be appropriated or credited to such

11 Trust Fund as provided in this section.

12 (b) TRANSFERS TO TRUST FUND.—(1) There are

13 hereby appropriated to the Trust Fund amounts equiva14 lent to amounts received by the Secretary of Defense as

15 cost savings from defense contracts covered by section 1.

16 (2) The amounts appropriated by paragraph (1) shall

17 be transferred at least monthly from the general fund of

18 the Treasury to the Trust Fund on the basis of estimates

19 made by the Secretary of the Treasury of the amounts

20 referred to in such paragraph. Adjustments shall be made

21 in the amounts subsequently transferred to the extent

22 prior estimates were more or less than the amounts re23 quired to be transferred.

24 (c) EXPENDITURES FOR JOB RETRAINING AND JOB

25 CREATION.—Amounts in the Trust Fund shall be avail-
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1 able, as provide by appropriation Acts, only for purposes

2 of making expenditures to carry out section 2 of this Act.

3 (d) MANAGEMENT OF TRUST FUND.—

4 (1) INVESTMENT.—

5 (A) IN GENERAL.—The Secretary of the

6 Treasury shall invest such portion of the Trust

7 Fund as is not, in his judgment, required to

8 meet current withdrawals. Such investments

9 may be made only in interest-bearing obliga10 tions of the United States and may be ac11 quired—

12 (i) on original issue at the issue price,

13 or

14 (ii) by purchase of outstanding obliga15 tions at the market price.

16 (B) SALE OF OBLIGATIONS.—Any obliga17 tion acquired by the Trust Fund may be sold

18 by the Secretary of the Treasury at the market

19 price.

20 (C) INTEREST OF CERTAIN PROCEEDS.—

21 The interest on, and the proceeds from the sale

22 or redemption of, any obligations held in the

23 Trust Fund shall be credited to and form a

24 part of the Trust Fund.
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1 (2) REPORT.—It shall be the duty of the Sec2 retary of the Treasury to hold the Trust Fund and

3 to report to the Congress each year on the financial

4 condition and the results of the operations of the

5 Trust Fund during the preceding fiscal year and on

6 its expected condition and operations during the

7 next 5 fiscal years.

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