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 Commit-
tee on National Security and, in addition, to the Committee on Economic
and Educational Opportunities, for a period to be subsequently deter-
mined 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 elimi-
nation 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 Representa-
tives 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 CON-
TRACT 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 elimi-
nation of jobs in the community in which the contractor
was carrying out the contract, then the Secretary of De-
fense shall deposit an amount equal to the Secretary’s por-
tion 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 contrac-
tor in carrying out the contract be returned to the Depart-
ment of Defense.
SEC. 3. JOB RETRAINING AND JOB CREATION ACTIVITIES.
The Secretary of Labor shall use amounts appro-
priated from the Displaced Defense Worker Trust Fund
for the following purposes:
(1) JOB RETRAINING ACTIVITIES.—Job retrain-
ing assistance under the Job Training Partnership
Act (29 U.S.C. 1501 et seq.).
(2) JOB CREATION ACTIVITIES.—Financial as-
sistance provided under the Public Works and Eco-
nomic 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 equiva-
lent 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 re-
quired to be transferred.
(c) EXPENDITURES FOR JOB RETRAINING AND JOB
CREATION.—Amounts in the Trust Fund shall be avail-
able, 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 obliga-
tions of the United States and may be ac-
quired—
(i) on original issue at the issue price,
or
(ii) by purchase of outstanding obliga-
tions at the market price.
(B) SALE OF OBLIGATIONS.—Any obliga-
tion 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.