SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defense Worker Dislocation Act''.

SEC. 2. RETRAINING.

    (a) In General.--Section 325(a) of the Job Training Partnership Act 
(29 U.S.C. 1662d(a)) is amended--
            (1) in the first sentence, by striking ``From the'' and 
        inserting ``(1) From the'';
            (2) by inserting after the first sentence the following: 
        ``The Secretary may make the grants in any State in which the 
        Governor has received a notification regarding a closure, 
        cancellation, or reduction under section 4201(b) of the Defense 
        Economic Adjustment, Diversification, Conversion, and 
        Stabilization Act of 1990, and in which eligible employees have 
        received notification of warning from their employer regarding 
        the closure, cancellation, or reduction.''; and
            (3) by striking the last sentence and inserting the 
        following:
    ``(2) To be eligible to receive a grant, an entity referred to in 
paragraph (1) shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require, including the date on which the entity anticipates that 
the eligible employees affected will lose employment, and information 
relating to the notifications described in paragraph (1).
    ``(3) The Secretary shall approve or deny the application not later 
than the later of--
            ``(A) 15 days after the date described in paragraph (2); or
            ``(B) 30 days after submission of the application.''.
    (b) Use of Funds.--Section 325 of such Act is amended by striking 
subsection (c) and inserting the following new subsection:
    ``(c)(1) Grants under subsection (a) may be used--
            ``(A) to provide retraining, as described in section 314(d) 
        or to update existing skills, with respect to an eligible 
        employee described in subsection (f)(3)(A); and
            ``(B) notwithstanding any other provision of this Act, to 
        pay for the Federal share of providing such retraining with 
        respect to an employee of eligible defense contractors or 
        eligible defense subcontractors if--
                    ``(i) the employee is currently involved in defense 
                work;
                    ``(ii) the retraining is designed to enable 
                employee to achieve placement and retention in 
                unsubsidized employment that involves nondefense work 
                and in which the employee has not previously been 
                substantially engaged; and
                    ``(iii) the employer certifies that the employee 
                would have become an eligible employee described in 
                subsection (f)(3)(A), without the retraining.
    ``(2) The Federal share of providing the retaining described in 
paragraph (1)(B) shall be 75 percent.''.
    (c) Administration.--Section 325 of such Act is amended by--
            (1) redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d)(1)(A) Not later than 15 days after the approval of an 
application of an entity under subsection (a)(3), the Secretary shall 
make available to the entity 50 percent of the amount of the grant.
    ``(B) On submission of the report described in subparagraph (C), 
the Secretary shall make available to the entity the remainder of the 
grant.
    ``(C) Each recipient of a grant under this section shall prepare 
and submit to the Secretary a report containing such information as the 
Secretary may require regarding eligible employees participating in the 
program, and the current education skill levels and occupational 
abilities of the employees.
    ``(D) Grants made under this section may be used to reimburse an 
entity for funds expended under another provision of this title for the 
purposes described in subsection (c).
    ``(E) Grants made under this section to an entity shall be in 
addition to assistance under any other provision of this title, and 
shall be made without regard to whether the entity has expended funds 
available under such provision.
    ``(2)(A) For purposes of the requirements of title I, and in 
particular of section 141(a), an eligible employee shall be deemed to 
be a person who can benefit from, and is most in need of, services 
provided under this section.
    ``(B) Notwithstanding any other provision of this Act, in 
prescribing performance standards under section 106 for this section, 
the Secretary shall prescribe standards solely based on placement and 
retention in unsubsidized employment. Services provided to eligible 
employees under this section consistent with individual readjustment 
plans shall be presumed to be in compliance with such standards unless 
any person demonstrates that the services are not in compliance.''.
    (d) Definitions.--Section 325 of such Act is amended by adding at 
the end the following new subsection:
    ``(f) For purposes of this section:
            ``(1) The term ``eligible defense contractor'' means a 
        person that is--
                    ``(A) awarded a contract by the Department of 
                Defense; and
                    ``(B) affected by a notification issued under 
                section 4201(b) of the Defense Economic Adjustmnent, 
                Diversification, Conversion, and Stabilization Act of 
                1990.
            ``(2) The term ``eligible defense subcontractor'' means a 
        subcontractor--
                    ``(A) for a person awarded a contract by the 
                Department of Defense;
                    ``(B) that is affected by such a notification; and
                    ``(C) that is certified by a State agency described 
                in section 3306(e) of the Internal Revenue Code of 
                1986.
            ``(3) The term `eligible employee' means--
                    ``(A) an eligible dislocated worker, including such 
                a worker of an eligible defense contractor or eligible 
                defense subcontractor, who has been terminated or laid 
                off, or has received a notice of termination or layoff, 
                as a consequence of reductions in expenditures by the 
                United States for defense or by closures of United 
                States military facilities, as determined in accordance 
                with regulations of the Secretary; and
                    ``(B) an employee described in subsection 
                (c)(1)(B).
            ``(4) The term `employer' includes an eligible defense 
        contractor and an eligible defense subcontractor.''.
Output: Defense Worker Dislocation Act - Amends the Job Training Partnership Act (JTPA) to revise eligibility requirements for the Defense Conversion Adjustment Program (program). 
Authorizes the Secretary of Labor to make program grants to specified types of eligible entities in any State in which:  (1) the Governor has received a notification regarding a closure, cancellation, or reduction under the Defense Economic Adjustment, Diversification, Conversion, and Stabilization Act of 1990; and (2) eligible employees have received a notification of warning from their employer regarding such closure, cancellation, or reduction. 
Allows use of program grant funds for retraining or to update existing skills with respect to an eligible dislocated worker, including an employee of an eligible defense contractor or subcontractor, who has been terminated or laid off, or received notice of termination or layoff, as a consequence of reductions in U.S.  expenditures for defense or by closures of U.S. military facilities.  Allows program grant funds also to be used to pay for the Federal share (75 percent) of such retraining with respect to an employee of eligible defense contractors or subcontractors if:  (1) the employee is currently involved in defense work; (2) the retraining is designed to enable the employee to achieve placement and retention in unsubsidized employment that involves nondefense work and in which the employee has not been previously engaged; and (3) the employer certifies that the employee would have become an eligible dislocated worker without such retraining. 
Revises program administration provisions. 
Allows program grants to be used to reimburse an entity for funds expended under JTPA provisions for Dislocated Workers. 
Provides that program grants shall be:  (1) in addition to assistance under any other JTPA Dislocated Worker provision; and (2) made without regard to whether the entity has expended funds available under such other provision. 
Deems to be an eligible employee (for purposes of JTPA general requirements) a person who can benefit from, and is most in need of, program services. 
Directs the Secretary to prescribe program performance standards solely on the basis of placement and retention in unsubsidized employment (notwithstanding other JTPA provisions for performance standards).