Detailed Instructions: 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 ''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103-337; 10 U.S.C. 2324 note) is repealed.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.