[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3433 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3433

  To prohibit the Secretary of Defense from authorizing payment under 
 defense contracts for restructuring costs of a merger or acquisition.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 1996

   Mr. Smith of New Jersey introduced the following bill; which was 
             referred to the Committee on National Security

_______________________________________________________________________

                                 A BILL


 
  To prohibit the Secretary of Defense from authorizing payment under 
 defense contracts for restructuring costs of a merger or acquisition.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PROHIBITION ON AUTHORIZATION OF PAYMENT OF COSTS UNDER 
              DEFENSE CONTRACTS FOR RESTRUCTURING COSTS OF A MERGER OR 
              ACQUISITION.

    (a) Prohibition.--The Secretary of Defense may not authorize 
payment of any restructuring costs associated with a merger or 
acquisition that are incurred by a contractor under contract with the 
Department of Defense.
    (b) Repeal.--Section 818 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2821; 10 U.S.C. 
2324 note) is amended--
            (1) by striking out subsections (a), (b), (c), and (d); and
            (2) by redesignating subsections (e), (f), and (g) as 
        subsections (a), (b), and (c), respectively.
    (c) Applicability.--(1) Subject to paragraph (2), the prohibition 
in subsection (a) applies with respect to restructuring costs 
associated with a merger or acquisition that are incurred before, on, 
or after the date of the enactment of this Act.
    (2) The prohibition in subsection (a) does not apply with respect 
to restructuring costs associated with a merger or acquisition that 
were paid by the Secretary of Defense before the date of the enactment 
of this Act.
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