REVISION TO REQUIREMENTS FOR NOTICE TO CONTRACTORS UPON PENDING OR ACTUAL TERMINATION OF DEFENSE PROGRAMS.

SEC. 1372. REVISION TO REQUIREMENTS FOR NOTICE TO CONTRACTORS UPON PENDING OR ACTUAL TERMINATION OF DEFENSE PROGRAMS. Section 4471 of the Defense Conversion, Reinvestment, and Transition Assistance Act of 1992 (division D of Public Law 102484; 106 Stat. 2753; 10 U.S.C. 2501 note) is amended to read as follows: 107 STAT. 1818 “SEC. 4471. NOTICE TO CONTRACTORS AND EMPLOYEES UPON PROPOSED AND ACTUAL TERMINATION OR SUBSTANTIAL REDUCTION IN MAJOR DEFENSE PROGRAMS. “(a) Notice Requirement After Submission of President’s Budget to Congress.—Each year, in conjunction with the preparation of the budget for the next fiscal year to be submitted to Congress under section 1105 of title 31, United States Code, the Secretary of Defense shall determine which major defense programs (if any) are proposed to be terminated or substantially reduced under the budget. As soon as reasonably practicable after the date on which the budget is submitted to Congress under such section, and not more than 180 days after such date, the Secretary, in accordance with regulations prescribed by the Secretary, shall provide notice of the proposed termination of, or substantial reduction in, each such program— “(1) directly to each prime contractor under that program; and “(2) by general notice through publication in the Federal Register. “(b) Notice Requirement After Enactment of Appropriations Act.—Each year, as soon as reasonably practicable after the date of the enactment of an Act appropriating funds for the military functions of the Department of Defense, and not more than 180 days after such date, the Secretary of Defense, in accordance with regulations prescribed by the Secretary— “(1) shall determine which major defense programs (if any) of the Department of Defense that were not previously identified under subsection (a) are likely to be terminated or substantially reduced as a result of the funding levels provided in that Act; and “(2) shall provide notice of the anticipated termination of, or substantial reduction in, that program— “(A) directly to each prime contractor under that program; “(B) directly to the Secretary of Labor; and “(C) by general notice through publication in the Federal Register. “(c) Notice to Subcontractors.—As soon as reasonably practicable after the date on which the prime contractor for a major defense program receives notice under subsection (a) or (b) of the termination of, or substantial reduction in, that program, and not more than 45 days after such date, the prime contractor shall— “(1) provide notice of that termination or substantial reduction to each person that is a first-tier subcontractor for that program under a contract in an amount not less than $500,000 for the program; and “(2) require that each such subcontractor— “(A) provide such notice to each of its subcontractors for the program under a contract in an amount in excess of $100,000; and “(B) impose a similar notice and pass through requirement to subcontractors in an amount in excess of $100,000 at all tiers. “(d) Contractor Notice to Employees and State Dislocated Worker Unit.—Not later than two weeks after a defense contractor receives notice under subsection (a)(1) or (b)(1), as the case may be, of the termination of, or substantial reduction in, 107 STAT. 1819a defense program, the contractor shall provide notice of such termination or substantial reduction to— “(1)(A) each representative of employees whose work is directly related to the defense contract under such program and who are employed by the defense contractor, or “(B) if there is no such representative at that time, each such employee; and “(2) the State dislocated worker unit or office described in section 311(b)(2) of the Job Training Partnership Act (29 U.S.C. 1661(b)(2)) and the chief elected official of the unit of general local government within which the adverse effect may occur. “(e) Constructive Notice.—The notice of termination of, or substantial reduction in, a major defense program provided under subsection (d)(1) to an employee of a contractor shall have the same effect as a notice of termination to such employee for the purposes of determining whether such employee is eligible for training, adjustment assistance, and employment services under section 325 or 325A of the Job Training Partnership Act (29 U.S.C. 1662d, 1662d-1), except where the employer has specified that the termination of, or substantial reduction in, the program is not likely to result in plant closure or mass layoff. Any employee considered to have received such notice under the preceding sentence shall only be eligible to receive services under section 314(b) of such Act (29 U.S.C. 1661c(b)) and under paragraphs (1) through (14), (16), and (18) of section 314(c) of such Act (29 U.S.C. 1661c(c)). “(f) Withdrawal of Notification Upon Sufficient Funding for Program To Continue.— “(1) Notice to prime contractor.—If the Secretary of Defense provides a notification under subsection (a) for a fiscal year with respect to a major defense program and the Secretary subsequently determines, upon enactment of an Act appropriating funds for the military functions of the Department of Defense for that fiscal year that due to a sufficient level of funding for the program having been provided in that Act there will not be a termination of, or substantial reduction in, that program, then the Secretary shall provide notice of withdrawal of the notification provided under subsection (a) to each prime contractor that received that notice under such subsection. Any such notice of withdrawal shall be provided as soon as reasonably practicable after the date of the enactment of the appropriations Act concerned. In any such case, the Secretary snail at the same time provide general notice of such withdrawal by publication in the Federal Register. “(2) Notice to subcontractors.—As soon as reasonably practicable after the date on which the prime contractor for a major defense program receives notice under paragraph (1) of the withdrawal of a notification previously provided to the contractor under subsection (a), and not more than 45 days after that date, the prime contractor shall provide notice of such withdrawal to each person that is a first-tier subcontractor for the program under a contract in an amount not less than $500,000 for the program and shall require that each such subcontractor provide such notice to each subcontractor for the program under a contract in an amount not less than $100,000 at any tier. 107 STAT. 1820 “(3) Notice to employees. —As soon as reasonably practicable after the date on which a prime contractor receives notice of withdrawal under paragraph (1) or a subcontractor receives such a notice under paragraph (2), and not more than two weeks after that date, the contractor or subcontractor shall provide notice of such withdrawal— “(A) to each representative of employees whose work is directly related to the defense contract under the program and who are employed by the contractor or subcontractor or, if there is no such representative at that time, each such employee; “(B) to the State dislocated worker unit or office described in section 311(b)(2) of the Job Training Partnership Act (29 U.S.C. 1661(b)(2)) and the chief elected official of the unit of general local government within which the adverse effect may occur; and “(C) to each grantee under section 325(a) or 325A(a) of the Job Training Partnership Act (29 U.S.C. 1662d, 1662d—1) providing training, adjustment assistance, and employment services to an employee described in this paragraph. “(4) Loss of eligibility.—An employee who receives a notice of withdrawal under paragraph (3) shall not be eligible for training, adjustment assistance, and employment services under section 325 or 325A of the Job Training Partnership Act (29 U.S.C. 1662d, 1662d-l) beginning on the date on which the employee receives the notice. “(g) Definitions.—For purposes of this section: “(1) The term ‘major defense program’ means a program that is carried out to produce or acquire a major system (as defined in section 2302(5) of title 10, United States Code). “(2) The terms ‘substantial reduction’ and ‘substantially reduced’, with respect to a major defense program, mean a reduction of 25 percent or more in the total dollar value of contracts under the program.”.