TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Territorial Health Parity Act of 
2009''.

SEC. 2. MEDICAID PAYMENT PARITY FOR THE TERRITORIES.

    (a) Elimination of Funding Limitations for Puerto Rico, the Virgin 
Islands, Guam, the Northern Mariana Islands, and American Samoa.--
            (1) In general.--Section 1108 of the Social Security Act 
        (42 U.S.C. 1308) is amended--
                    (A) in subsection (f), in the matter before 
                paragraph (1), by striking ``subsection (g)'' and 
                inserting ``subsections (g) and (h)'';
                    (B) in subsection (g)(2), in the matter before 
                subparagraph (A), by inserting ``and subsection (h)'' 
                after ``paragraph (3)''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(h) Sunset of Funding Limitations for Puerto Rico, the Virgin 
Islands, Guam, the Northern Mariana Islands, and American Samoa.--
Subsections (f) and (g) shall not apply to Puerto Rico, the Virgin 
Islands, Guam, the Northern Mariana Islands, and American Samoa for any 
fiscal year after fiscal year 2009.''.
            (2) Conforming amendment.--Section 1903(u) of such Act (42 
        U.S.C. 1396c(u)) is amended by striking paragraph (4).
            (3) Effective date.--The amendments made by this subsection 
        shall apply beginning with fiscal year 2010.
    (b) Parity in FMAP.--
            (1) In general.--Section 1905(b)(2) of such Act (42 U.S.C. 
        1396d(b)(2)) is amended by inserting after ``50 per centum'' 
        the following: ``(except that, beginning with fiscal year 2012, 
        the Federal medical assistance percentage for Puerto Rico, the 
        Virgin Islands, Guam, the Northern Mariana Islands, and 
        American Samoa shall be the Federal medical assistance 
        percentage determined by the Secretary in consultation (for the 
        Virgin Islands, Guam, the Northern Mariana Islands, and 
        American Samoa) with the Secretary of the Interior)''.
            (2) 2-fiscal-year transition.--Notwithstanding any other 
        provision of law, during fiscal years 2010 and 2011, the 
        Federal medical assistance percentage established under section 
        1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) for 
        Puerto Rico, the Virgin Islands, Guam, the Northern Mariana 
        Islands, and American Samoa shall be the highest such Federal 
        medical assistance percentage applicable to any of the 50 
        States or the District of Columbia for the fiscal year 
        involved, taking into account the application of subsections 
        (a) and (b)(1) of 5001 of division B of the American Recovery 
        and Reinvestment Act of 2009 (Public Law 111-5) to such States 
        and District for calendar quarters during such fiscal years for 
        which such subsections apply respectively.
            (3) Per capita income data.--
                    (A) Report to congress.--Not later than October 1, 
                2010, the Secretary of Health and Human Services shall 
                submit to Congress a report that describes the per 
                capita income data used to promulgate the Federal 
                medical assistance percentage in the territories and 
                how such data differ from the per capita income data 
                used to promulgate Federal medical assistance 
                percentages for the 50 States and the District of 
                Columbia. The report should include recommendations on 
                how the Federal medical assistance percentages can be 
                calculated for the territories to ensure parity with 
                the 50 States and the District of Columbia.
                    (B) Application.--Section 1101(a)(8)(B) of the 
                Social Security Act (42 U.S.C. 1308(a)(8)(B)) is 
                amended--
                            (i) by striking ``(other than Puerto Rico, 
                        the Virgin Islands, and Guam)'' and inserting 
                        ``(including Puerto Rico, the Virgin Islands, 
                        Guam, the Northern Mariana Islands, and 
                        American Samoa)''; and
                            (ii) by inserting ``(or, if such 
                        satisfactory data are not available in the case 
                        of the Virgin Islands, Guam, the Northern 
                        Mariana Islands, or American Samoa, 
                        satisfactory data available from the Department 
                        of the Interior for the same period, or if such 
                        satisfactory data are not available in the case 
                        of Puerto Rico, satisfactory data available 
                        from the Government of the Commonwealth of 
                        Puerto Rico for the same period)'' after 
                        ``Department of Commerce''.
            (4) Relation to american recovery and reinvestment act of 
        2009.--For any period and territory in which the provisions of 
        this subsection apply to a territory, the provisions of section 
        5001(b)(2) of division B of the American Recovery and 
        Reinvestment Act of 2009 (Public Law 111-5) shall not apply 
        (except as otherwise specifically provided in paragraph (2)).

SEC. 3. CLARIFICATION OF MEDICAID COVERAGE FOR CITIZENS OF FREELY 
              ASSOCIATED STATES.

    (a) In General.--Section 402(b)(2) of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)) 
is amended by adding at the end the following:
                    ``(G) Medicaid exception for citizens of freely 
                associated states.--With respect to eligibility for 
                benefits for the program defined in paragraph (3)(C) 
                (relating to the Medicaid program), paragraph (1) shall 
                not apply to any individual who lawfully resides in the 
                United States (including territories and possessions of 
                the United States) in accordance with the Compacts of 
                Free Association between the Government of the United 
                States and the Governments of the Federated States of 
                Micronesia, the Republic of the Marshall Islands, and 
                the Republic of Palau.''.
    (b) Conforming Definition of Qualified Alien.--Section 431(b) of 
such Act (8 U.S.C. 1641(b)) is amended--
            (1) in paragraph (6), by striking ``or'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) an individual who lawfully resides in the United 
        States (including territories and possessions of the United 
        States) in accordance with a Compact of Free Association 
        referred to in section 402(b)(2)(G), but only with respect to 
        the program defined in section 402(b)(3)(C) (relating to the 
        Medicaid program).''.
    (c) Setting FMAP at 100 Percent.--The third sentence of section 
1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) is amended by 
inserting before the period at the end the following: ``and as medical 
assistance for individuals described in section 402(b)(2)(G) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 
1996''.
    (d) Effective Date.--The amendments made by this Act take effect on 
October 1, 2009, Act and apply to benefits and assistance provided on 
or after that date.

SOLUTION: Territorial Health Parity Act of 2009 - Amends title XI of the Social Security Act (SSA) to sunset at the end of FY2009 the limitation on Medicaid payments to Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.

Amends SSA title XIX (Medicaid) to: (1) repeal, as of the end of FY2011, the federal medical assistance percentage (FMAP) of 50% that applies to such territories; and (2) set the new FMAP for such territories at one determined by the Secretary of Health and Human Services (Secretary) in consultation with the Secretary of the Interior. Specifies a transitional FMAP for such territories for FY2010-FY2011.

Requires the Secretary to report to Congress on the per capita income data used to promulgate the FMAP in the territories and how such data differ from the per capita income data used to promulgate FMAPs for the 50 states and the District of Columbia. Requires the report to include recommendations on how FMAPs can be calculated for the territories to ensure parity with the 50 states and the District of Columbia.

Amends the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to extend the Medicaid program to the citizens of the Freely Associated States (Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau).

Amends SSA title XIX to set a 100% FMAP for otherwise qualified services rendered to such citizens.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Quality Assurance in Drug Testing 
Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) drug abuse in the workplace is a serious national 
        problem, and
            (2) drug testing can be an effective deterrent to drug 
        abuse when administered in a manner that provides for quality 
        assurance.

SEC. 3. QUALITY ASSURANCE IN DRUG TESTING.

    The Public Health Service Act (42 U.S.C. 201 et seq.) is amended by 
adding at the end the following new title:

            ``TITLE XXVII--QUALITY ASSURANCE IN DRUG TESTING

``SEC. 2701. LABORATORY CERTIFICATION STANDARDS.

    ``(a) Prohibition.--No individual may perform a toxicological 
analysis in connection with any drug testing program that is subject to 
this title unless such analysis is conducted in a laboratory certified 
under subsection (b).
    ``(b) Certification.--Not later than 1 year after the date of 
enactment of this title, the Secretary shall establish a program for 
certifying laboratories that meet standards for performing--
            ``(1) drug screening tests,
            ``(2) drug confirmatory tests, and
            ``(3) both drug screening and confirmatory tests.
    ``(c) Criteria.--In establishing standards for certification under 
subsection (b), the Secretary shall use criteria that will maximize the 
predictive value of the testing scheme and that take into consideration 
the practices, procedures, and experience of drug testing programs 
which the Secretary determines are conducted in accordance with 
appropriate standards and procedures.
    ``(d) Periodic Review.--At least once each year, the Secretary 
shall review, and where appropriate revise, the certification criteria 
established under subsection (b), taking into consideration the 
relevant scientific technical advances in the area of drug testing and 
revisions needed to reflect employer zero-drug tolerance practices.

``SEC. 2702. ANTI-DRUG ABUSE POLICY.

    ``(a) Written Policy.--As a condition of implementing or 
maintaining a drug testing program, an employer shall establish a 
written anti-drug abuse policy that shall contain, at a minimum, an 
explanation concerning the--
            ``(1) circumstances under which a drug test will be 
        administered, the procedures for notifying an employee of a 
        confirmed positive result, and a statement the policy will be 
        administered in a consistent and nondiscriminatory manner 
        without regard to whether the employee is employed in a 
        management or hourly capacity,
            ``(2) safeguards established for protecting the privacy of 
        individuals who are subject to testing, including chain custody 
        procedures and the limitations on disclosure of the results of 
        drug tests,
            ``(3) availability of any drug abuse treatment program,
            ``(4) penalties that may be imposed for a violation of the 
        anti-drug policy of the employer, and
            ``(5) procedures under which an applicant or employee shall 
        be given a reasonable opportunity to explain a confirmed 
        positive test result.
    ``(b) Notice.--An employer shall make a reasonable effort to 
provide notice of the written anti-drug abuse policy to applicants and 
employees subject to testing using whatever methods the employer 
determines to be appropriate.

``SEC. 2703. DRUG-FREE AWARENESS PROGRAM.

    ``In order for an employer to be permitted to implement or maintain 
a drug testing program, such employer shall establish, as part of such 
drug testing program, a drug-free awareness program designed to inform 
its employees concerning--
            ``(1) the dangers of drug abuse, both inside and outside of 
        the workplace,
            ``(2) the policy of the employer of maintaining a drug-free 
        workplace,
            ``(3) information as to the existence and availability of 
        counseling, employee assistance, rehabilitation, and other drug 
        abuse treatment programs of which the employer is aware, and
            ``(4) the penalties that may be imposed on applicants and 
        employees who test positive for the use of a drug, and for the 
        manufacture, distribution, dispensation, possession, or use of 
        a drug in the workplace of the employer.

``SEC. 2704. STANDARDS FOR DRUG TESTING.

    ``(a) Applicants.--Nothing in this title shall be construed to 
prohibit an employer from requiring, as a condition of employment, that 
an applicant submit to and pass a drug test based on criteria 
established by the employer that is designed to achieve a drug-free 
workplace. Refusal by an applicant to submit to such a test may be 
treated in the same manner as a failure to pass a drug test.
    ``(b) Employees.--Nothing in this title shall be construed to 
prohibit an employer from requiring an employee to submit to and pass a 
drug test--
            ``(1) where the employer has reasonable suspicion to 
        believe that the employee is using or under the influence of a 
        drug,
            ``(2) where such test is administered as part of a 
        scheduled medical examination,
            ``(3) in the case of an accident or incident involving the 
        actual or potential loss of human life, serious bodily injury, 
        or significant property damage,
            ``(4) during and for a reasonable period of time (not to 
        exceed 5 years) after the completion of a drug abuse treatment 
        program, or
            ``(5) in the case of sensitive employee positions, work 
        units, locations, or facilities where drug abuse has been 
        identified as a problem, on a random basis.
    ``(c) Definition.--As used in this title, the term `random' means 
the selection of individuals for testing based on a nondiscriminatory 
impartial methods so that no employee is harassed or treated 
differently from other employees in similar circumstances.

``SEC. 2505. EMPLOYEE PROTECTIONS.

    ``(a) Prohibitions.--In the case of an applicant or employee, it 
shall be a violation of this title--
            ``(1) for an employer to fail to make reasonable efforts to 
        inform the applicant or employee as to the drug testing policy 
        of the employee,
            ``(2) for an employer to take any adverse action based on 
        the unconfirmed positive results of a drug test, except as 
        provided in subsection (c),
            ``(3) for an employer, on the request of an applicant or 
        employee, to fail to provide such applicant or employee with a 
        reasonable opportunity to be informed of a confirmed positive 
        drug test result, and
            ``(4) for an employer, on the request of an applicant or 
        employee, to fail to provide such applicant or employee with a 
        reasonable opportunity to explain the results of a confirmed 
        positive test result.
    ``(b) Antiretaliation Prohibition.--It shall be a violation of this 
title for an employer to take retaliatory action against an employee 
because of the exercise by the employee of any right granted or 
protected under this title.
    ``(c) Exception for Sensitive Employees.--Pending the receipt of 
the results of a confirmatory drug test, an employer may transfer or 
reassign an employee in a sensitive position to another area or 
position without any loss in compensation to such employee if the 
initial drug test result is positive. If a confirmatory test of such 
employee is negative, such employee shall be entitled to immediate 
reinstatement to the position from which such employee has been 
transferred or reassigned.

``SEC. 2706. CONFIDENTIALITY.

    ``(a) In General.--An individual, other than the applicant or 
employee who is the subject of a drug test, shall not disclose 
information obtained as a result of a drug test, except as provided in 
subsection (b).
    ``(b) Permitted Disclosures.--An employer, or individual conducting 
a drug test on behalf of an employer, may disclose information acquired 
from a drug test only to--
            ``(1) the applicant or employee taking such drug test or 
        any other individual specifically designated in writing by such 
        applicant or employee taking such drug test,
            ``(2) the employer, including the designated representative 
        of such employer, that requested such test,
            ``(3) any court, governmental agency, arbitrator, or 
        mediator, in accordance with Federal or State law, and
            ``(4) appropriate drug abuse treatment providers.

``SEC. 2707. EMPLOYER PRACTICES.

    ``(a) Safe Workplace.--Nothing in this title shall be construed to 
prohibit an employer from taking action necessary to ensure a safe 
workplace.
    ``(b) Drug-Free Workplace.--Nothing in this title shall be 
construed to prohibit an employer from taking action necessary, up to 
and including termination, in the case of applicant or employee--
            ``(1) whose drug test result is confirmed positive,
            ``(2) who refuses to take a drug test authorized under this 
        title, or
            ``(3) who tampers with or adulterates a drug testing 
        specimen.
    ``(c) Participation in Drug Abuse Treatment Program.--Nothing in 
this title shall be construed to prohibit an employer from requiring an 
employee to participate in, and satisfactorily complete, a drug 
treatment program as a condition of continued employment where the 
employee has tested confirmed positive for drugs, has refused to submit 
to a drug test, or has tampered with or adulterated a drug test 
specimen.
    ``(d) Sensitive Position.--Nothing in this title shall be construed 
to prohibit an employer from refusing to place an employee in, or 
reinstate such employee, to a sensitive position if such employee has 
tested confirmed positive for drug use.

``SEC. 2708. DRUG ABUSE TREATMENT PROGRAMS.

    ``As part of the drug-free awareness program established pursuant 
to section 2703, employers shall provide information to employees 
concerning the existence and availability of public and private drug 
counseling, employee assistance, rehabilitation, and other drug abuse 
treatment programs of which the employer is aware.

``SEC. 2709. REGULATIONS.

    ``Not later than 1 year after the date of enactment of this title, 
the Secretary shall--
            ``(1) establish a program for the certification of 
        laboratories for the performance of toxicological urinalysis 
        conducted for drug testing programs as described in this title, 
        and
            ``(2) issue such other rules and regulations as may be 
        necessary or appropriate to carry out this title.

``SEC. 2710. ENFORCEMENT AND RELIEF.

    ``(a) Laboratory Certification Standards.--The certification 
program established pursuant to section 2701(b) shall be enforced in 
accordance with the procedures and sanctions contained in subsections 
(g), (h), (i), (j), (k), and (l) of section 353.
    ``(b) Employee Complaints Charging Unlawful Discharge or 
Discrimination; Investigation Order.--
            ``(1) Complaint.--An employee who believes that such 
        employee has been charged or otherwise discriminated against by 
        an employer in violation of this title may, not later than 30 
        days after such action occurs, file (or have any individual 
        file on behalf of such employee) a complaint with the Secretary 
        of Labor (hereinafter referred to in this subsection as the 
        `Secretary') alleging that such discharge or discrimination 
        violates this title. On receipt of such complaint, the 
        Secretary shall notify the individual named in the complaint of 
        such filing.
            ``(2) Investigation and order.--
                    ``(A) Investigation.--On receipt of a complaint 
                filed under paragraph (1), the Secretary shall conduct 
                an investigation of the violation alleged in such 
                complaint. Not later than 30 days after the receipt of 
                such complaint, the Secretary shall complete such 
                investigation and shall notify in writing the employer 
                (and any individual acting on behalf of the employer) 
                as to the results of such investigation.
                    ``(B) Order.--Not later than 30 days after the 
                completion of such investigation, the Secretary shall, 
                unless the proceeding on the complaint is terminated by 
                the Secretary on the basis of a settlement entered into 
                by the Secretary and the employer alleged to have 
                committed such violation, issue an order either 
                providing the relief prescribed in this section or 
                denying the complaint. An order of the Secretary issued 
                under this subparagraph shall be made on the record 
                after notice and opportunity for public hearing.
            ``(3) Relief.--If, in response to a complaint filed under 
        paragraph (1), the Secretary determines that a violation of 
        this title has occurred, the Secretary shall order the employer 
        who committed such violation to provide such suitable relief as 
        the Secretary determines appropriate, including reinstatement, 
        promotion, and the payment of lost wages and benefits.
            ``(4) Review or order.--An employee or employer adversely 
        affected or aggrieved by an order issued under paragraph (2) 
        may obtain review of such order in the United States Court of 
        Appeals for the circuit in which the violation, with respect to 
        which the order was issued, allegedly occurred. The petition 
        for review shall be filed not later than 60 days after the 
        issuance of the order of the Secretary under paragraph (2). 
        Review by the Court of Appeals shall conform to chapter 7 of 
        Title 5, United States Code.
            ``(5) Failure to comply.--If an employee or employer fails 
        to comply with an order issued under paragraph (2), the 
        Secretary may file a civil action in the United States court 
        for the district in which the violation was found to occur to 
        enforce such order. Such court, in issuing any final order 
        under this subsection, may award the costs of litigation 
        (including reasonable attorney and expert witness fees) to the 
        prevailing party.
    ``(c) Affirmative Defense.--The good faith compliance of an 
employer with the standards and procedures established under this title 
shall constitute an affirmative defense against any complaint filed 
under subsection (b).
    ``(d) Construction.--Nothing in this title shall be construed to 
require an employer to establish a drug testing program for applicants 
or employees or make employment decisions based on such test results.

``SEC. 2711. EFFECT ON OTHER LAWS.

    ``(a) State Law.--This title shall preempt any State or local law, 
rule, regulation, order or standard that applies to the drug testing of 
an applicant or employee, or that relates to any matter addressed under 
this title. No State or local government shall adopt or enforce any 
law, rule, regulation, ordinance, standard or order relating to--
            ``(1) the certification of laboratories that perform drug 
        testing analysis with respect to such analysis,
            ``(2) requirements for the conduct of drug testing under 
        the certification program established under this title,
            ``(3) the conducting of employee or applicant drug testing 
        programs, or
            ``(4) any other matter relating to this title.
    ``(b) Other Federal Laws.--Nothing in this title shall be construed 
to prohibit the Secretary of Transportation or the Nuclear Regulatory 
Commission from issuing regulations with respect to drug and alcohol 
testing.

``SEC. 2712. EFFECTIVE DATE.

    ``This title shall become effective 2 years after the date of 
enactment of this title, except that the prohibition contained in 
section 2701(a) shall not take effect less than 1 year after 
establishment of the certification program required under section 
2701(b).

``SEC. 2713. DEFINITIONS.

    ``As used in this title:
            ``(1) Applicant.--The term `applicant' means any individual 
        who has submitted an application to an employer, whether 
        written or oral, for employment with such employer.
            ``(2) Drug.--The term `drug' means any controlled substance 
        listed in Scheduled I through V of section 202 of the 
        Controlled Substances Act (21 U.S.C. 812), alcohol, steroids, 
        and any other drug or medication that can interfere with 
        employment performance.
            ``(3) Drug abuse treatment program.--The term `drug abuse 
        treatment program' means a program, such as an employee 
        assistance program, designed to assist an individual in dealing 
        with problems caused by drug abuse.
            ``(4) Drug test.--The term `drug test' means any test 
        procedure used to take and analyze blood, breath, hair, urine 
        or other body fluids or materials for the purpose of detecting 
        the presence or absence of a drug or its metabolites.
            ``(5) Employee.--The term `employee' means an individual 
        employed by an employer.
    ``(f) Employer.--The term `employer' means an individual, 
partnership, corporation, association, or other entity (including the 
Federal Government), that employs one or more employees, and that is 
engaged in an industry affecting commerce.
    ``(g) Sensitive Employee.--The term `sensitive employee' means an 
individual employed in a position whose duties, as defined by the 
employer, involve responsibilities affecting such matters as national 
security, health, or safety, environment, or other responsibilities 
requiring a high degree of trust and confidence.

``SEC. 2714. PROFESSIONAL ATHLETES.

    ``For purposes of this title, professional athletes may be treated 
in the same manner as employees who meet the definition of section 
2714(g), except that professional athletes shall not be covered by 
section 2706(a).''.

SOLUTION: Quality Assurance in Drug Testing Act - Amends the Public Health Service Act to prohibit performing toxicological analysis in connection with a drug testing program unless the laboratory performing the analysis is certified under this Act.  Directs the Secretary of Health and Human Services to establish a program for certifying laboratories for performing drug tests. 
Requires an employer, as a condition of maintaining a drug testing program, to establish a written anti-drug abuse policy and a drug-free awareness program. 
Declares that nothing in this Act prohibits an employer from requiring a drug test of applicants and, in certain circumstances, employees. 
Sets forth certain employee protections. 
Declares that nothing in this Act prohibits an employer from taking action necessary, including termination, in certain circumstances. 
Sets forth procedures for employee complaints of unlawful discharge or discrimination.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Payoffs-for-Layoffs Corporate 
Welfare Elimination Act of 1997''.

SEC. 2. PROHIBITION ON PAYMENTS UNDER DEFENSE CONTRACTS FOR 
              RESTRUCTURING COSTS OF A DEFENSE CONTRACTOR MERGER OR 
              ACQUISITION.

    (a) Prohibition.--No funds appropriated or otherwise made available 
to the Department of Defense may be obligated or expended under section 
2324 of title 10, United States Code, for payment of any restructuring 
cost associated with a merger or acquisition that is incurred by a 
contractor under contract with the Department of Defense.
    (b) Applicability.--(1) The prohibition in subsection (a) applies 
with respect to any merger or acquisition occurring on or after the 
date of the enactment of this Act.
    (2) In the case of a merger or acquisition that occurred before the 
date of the enactment of this Act, funds appropriated or otherwise made 
available to the Department of Defense may be used to process or pay a 
claim for restructuring costs associated with the merger or acquisition 
only if the relevant contract or advance agreement specifies that 
payment for such costs may be made under the contract or agreement 
using funds appropriated or otherwise made available to the Department 
of Defense.
    (c) Conforming Repeal.--Subsection (a) of section 818 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 10 U.S.C. 2324 note) is repealed.
    (d) Reports by Secretary of Defense.--Subsection (e) of such 
section is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``and 1997'' and inserting in lieu thereof ``1997, 1998, 1999, 
        and 2000''; and
            (2) by adding at the end of paragraph (3) the following:
                    ``(F) An analysis of the dollar amount of any 
                windfalls achieved by the combining defense contractors 
                which results from the reduction of overhead on fixed-
                price type contracts from the Department of Defense 
                that existed before the business combination.
                    ``(G) A list of each major weapons system purchased 
                by the Department of Defense since July 21, 1993, for 
                which actual prices have actually been reduced that are 
                attributable to the contractors' restructuring efforts.
                    ``(H) The total number of pending restructuring 
                proposals submitted to the Department of Defense as of 
                the date of the report and the total dollar amount of 
                the requests for restructuring costs contained in those 
                proposals.''.
    (e) Comptroller General Report.--Subsection (g)(3) of such section 
is amended by adding at the end the following: ``The report shall 
include an estimate and detailed description of the net effect on the 
Federal budget of reimbursing defense contractors for their merger-
related restructuring costs, including the following:
            ``(A) The payment by the Department of Defense of 
        restructuring costs resulting from business combinations of 
        defense contractors.
            ``(B) The reduction of Federal tax revenues from 
        unemployment resulting from business combinations of defense 
        contractors who have been reimbursed for their merger-related 
        restructuring costs.
            ``(C) The increase in Federal expenditures in other Federal 
        adjustment programs from unemployment resulting from business 
        combinations of defense contractors who have been reimbursed 
        for their merger-related restructuring costs, including food 
        stamps, housing and energy assistance, and any other programs 
        the Comptroller General determines that unemployed persons are 
        likely to use at a rate higher than employed persons.
            ``(D) The increase in Federal grants of cash and in-kind 
        assistance to States and local communities that have 
        experienced significant layoffs or facility relocation (or 
        both) resulting from the business combination, that are 
        attributable to losses in the State and local tax base and 
        increased the use of State and local government services 
        similar to those described in subparagraph (C).
            ``(E) The effect of reduced competition resulting from 
        business combinations on the prices the Department of Defense 
        pays for military equipment and services.''.
    (f) Definitions.--Such section is further amended by adding at the 
end the following new subsection:
    ``(h) Definitions.--For purposes of this section:
            ``(1) The term `windfall' means the savings, either 
        actually realized or anticipated, by the combining defense 
        contractors as a result of reducing overhead through merger-
        related restructuring which are foregone by the Government 
        because certain defense contracts are fixed-price type 
        contracts that existed before the business combination and 
        cannot be adjusted to reflect the contractor's reduced 
        overhead.
            ``(2) The term `significant layoffs' means a situation in 
        which the number of layoffs exceed 500 full-time equivalent 
        employees or in which one of the combining defense contractors 
        previously represented the fifth largest employer or greater in 
        the relevant State or local community.''.

SOLUTION:
Payoffs-for-Layoffs Corporate Welfare Elimination Act of 1997 - Prohibits any funds appropriated or otherwise made available to the Department of Defense (DOD) from being obligated or expended for payment of any restructuring cost associated with a merger or acquisition incurred by a DOD contractor. 
Provides for the handling of contractor claims for such costs with respect to a merger or acquisition occurring before the enactment of this Act. 
Amends the National Defense Authorization Act for Fiscal Year 1995 to:  (1) repeal a provision made inconsistent by this Act; (2) extend through FY 2000 a requirement of a report from the Secretary of Defense to the Congress concerning DOD savings achieved under a corporate restructuring; (3) require in such report certain additional information concerning DOD's past experience with contractors for which DOD agreed to allow such costs; and (4) require a current report from the Comptroller General to the Congress to include an estimate and description of the net effect on the Federal budget of reimbursing defense contractors for such costs.