Community Adjustment Act of 1989

Summary

Community Adjustment Act of 1989 - Amends the Public Works and Economic Development Act of 1965 to revise the special economic development and adjustment assistance program by establishing a community adjustment program. Authorizes the Secretary of Commerce to make matching grants to any State or local government, Indian tribe, economic development district, or qualified nonprofit organization to establish a revolving loan fund to implement a community adjustment strategy for a designated distress area. Requires a revolving loan fund to be available for making: (1) loans for improvement of public facilities; and (2) loans and loan guarantees to any business for providing capital, assets, facilities, or equipment or establishing any qualified employee ownership organization or worker cooperative association necessary to establish or retain such business in such area. Prohibits any loan from being made under a revolving loan fund, unless: (1) it is unavailable from private lenders; and (2) the loan applicant assures repayment and agrees to submit semiannual reports to the fund administrator and other information required by the Secretary. Prohibits loans from being made to facilitate the relocation of industrial or commercial facilities, unless the Secretary finds that relocation would not significantly and adversely affect unemployment in, or the economic base of, the area from which the facility would relocate. Requires each grant recipient, for five years after receiving one, to submit reports required by the Secretary and to monitor the effectiveness of assistance from the revolving loan fund. Prohibits the use of assistance provided under this Act for administrative expenses. Directs the Secretary to designate as distressed any area that: (1) is experiencing long-term economic distress and a permanent loss of a substantial number of jobs; (2) has experienced or is threatened with the loss of a major employer; (3) has experienced an emergency or major disaster as declared by the President during the preceding year; or (4) has experienced a significant rise in unemployment in an occupation. Requires the aggregate population of areas designated distressed in any period to be between 20 and 25 percent of the total U.S. population. Requires a community adjustment strategy to: (1) identify the economic adjustment problems, a strategy for solving them, and the extent to which the strategy will enhance the ability of the applicant to implement any projects and programs to carry out the proposed adjustment; (2) discuss the necessary projects and timetables for, and the costs and anticipated benefits of, implementing the strategy; (3) summarize the public and private resources expected to be available for such projects; and (4) identify methods for finding employment for persons unemployed or threatened with unemployment. Authorizes the Secretary to make grants for up to 75 percent of the cost of preparation of such strategies. Prohibits more than 15 percent of the appropriations made under this Act from being expended in any State, except for expenditures to Indian tribes. Requires the Secretary to: (1) disseminate information concerning national and regional economic trends likely to result in economic disclocations; (2) develop and test new economic adjustment approaches and methods to predict such dislocations; and (3) provide necessary technical and financial assistance to any State, economic development district, or local governments facing or undergoing dislocations. Authorizes appropriations for FY 1990 through 1992.

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2 official files

• Introduced in House (text)

  Introduced in House · EN

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• Introduced in House

  summary · EN · 3 January 1989

  Open at official source

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