[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1396 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1396

 To amend section 4532 of title 10, United States Code, to provide for 
the coverage and treatment of overhead costs of United States factories 
   and arsenals when not making supplies for the Army, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 1999

Mr. Fitzgerald introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
 To amend section 4532 of title 10, United States Code, to provide for 
the coverage and treatment of overhead costs of United States factories 
   and arsenals when not making supplies for the Army, and for other 
                               purposes.

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

SECTION 1. OVERHEAD COSTS OF UNITED STATES FACTORIES AND ARSENALS WHEN 
              NOT MAKING SUPPLIES FOR THE ARMY.

    (a) Finding.--Congress makes the following findings:
            (1) Factories and arsenals owned by the United States play 
        a vital role in the national defense by ensuring the making of 
        supplies for the Department of the Army.
            (2) The vital role of such factories and arsenals in the 
        national defense is not diminished by their unutilization or 
        underutilization in peacetime.
    (b) Overhead Costs of Factories and Arsenals When Unutilized or 
Underutilized.--Section 4532 of title 10, United States Code, is 
amended by adding at the end the following:
    ``(c) Overhead Costs When Unutilized or Underutilized.--(1) The 
Secretary shall submit to Congress each year, together with the 
President's budget for the fiscal year beginning in such year under 
section 1105(a) of title 31, an estimate of the funds to be required in 
the fiscal year in order to cover any overhead costs at factories and 
arsenals referred to in subsection (a) that result from the 
unutilization or underutilization of such factories and arsenals in the 
fiscal year due to low production requirements of the Department of the 
Army.
    ``(2) Funds appropriated to the Secretary for a fiscal year for 
costs described in paragraph (1) shall be available to the Secretary in 
such fiscal year to cover such costs.
    ``(3) In determining the cost of making a supply or other good, 
other than a supply for the Department of the Army, at a factory or 
arsenal referred to in subsection (a), the Secretary shall not take 
into account any overhead cost covered with funds available to the 
Secretary under paragraph (2).''.
    (c) Stylistic Amendments.--That section is further amended--
            (1) in subsection (a), by inserting ``Authority To Make 
        Supplies.--'' before ``The Secretary of the Army''; and
            (2) in subsection (b), by inserting ``Abolition.--'' before 
        ``The Secretary''.
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