Summary: H.R.441 — 102nd Congress (1991-1992)All Information (Except Text)

There is one summary for H.R.441. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (01/03/1991)

Defense Economic Adjustment Act - Title I: Defense Economic Adjustment Council - Establishes in the Executive Office of the President the Defense Economic Adjustment Council to be co-chaired by the Secretaries of Commerce and Labor. Establishes in the Executive Office an Office of Economic Adjustment, headed by a Director, to provide staff support to the Council. Directs the Council to disseminate information from the Secretary of Defense to Federal, State, and local agencies concerning proposed or pending changes in defense spending which would affect employment in the defense industry.

Requires the Council to perform other duties, including: (1) encouraging the preparation of plans for non-defense-related public projects; (2) coordinating and developing information on priority, federally-funded projects and programs pertaining to defense economic adjustment; (3) monitoring job services information banks; and (4) determining criteria for eligibility for assistance under this Act.

Directs the Secretary of Defense to provide the pertinent information to the Council a year in advance of any change and to furnish the Council with projected future defense spending levels.

Directs the Council to prepare and distribute a Conversion Guidelines Handbook to outline requirements of programs for professional retraining of personnel.

Title II: Community Economic Adjustment Planning - Makes eligible for Federal assistance for economic adjustment planning any community which is substantially affected by reduction or elimination of Government defense facilities or curtailment or conclusion of defense contracts. Directs the Council to make available to alternative use committees information on economic development programs of any Federal instrumentality which provides funds that may be used for planning. Requires the Council to report to the Congress at least annually on any such economic development program.

Directs the Council to use data from other departments to develop criteria which ensures that assistance is directed to those communities that are most vulnerable economically to reductions in defense expenditures. Requires the Council to publish a semiannual list of eligible communities.

Requires excess property resulting from a closing or reduction in a Government-owned facility to be appraised for purposes of resale to the community.

Title III: Alternative Use Committees - Requires the establishment of alternative use committees at defense facilities to plan for economic conversion in the event of closure or reduction. Directs such committees to: (1) evaluate the assets of the facilities and the resources and requirements of the local community; (2) develop at least biennially a detailed plan for conversion of the facility to non-defense-related productive activity; and (3) provide retraining and reemployment counseling services.

Requires conversion plans to maximize the pool of skills of available personnel and specify in detail the composition of the work force and plant, material, and financing requirements. Penalizes any contractor who fails to submit an alternative use plan or carry out one approved by the Council by making such contractor ineligible for future defense contracts for three years.

Title IV: Economic Adjustment Assistance for Workers - Makes displaced workers certified by the local alternative use committees to the Council eligible for benefits for two years under this Act. Includes among such benefits: weekly compensation, vested pension credit, maintenance of health insurance, retraining for civilian work, job search allowance, and reimbursement for relocation expenses. Requires completion of a program of professional retraining before certain employees are eligible for assistance.

Directs the Council to enter into agreements with a State or agency in the State administering the unemployment compensation law to disburse benefits under this Act. Requires displaced workers to accept any employment determined by the State agency or Secretary of Labor to be comparable to the former job, or benefits will terminate. Excludes these benefits from other determinations of eligibility for unemployment compensation under any Federal or State law.

Title V: Economic Adjustment Fund - Establishes in the Treasury a Workers Economic Adjustment Reserve Trust Fund. Requires defense contractors to pay a specified percentage into the Fund. Directs the Secretary of the Treasury to deposit a percentage of the projected savings resulting from a cancellation or cutback in defense spending.

Title VI: Use of Certain Research Funds - Requires the Council to define urgent national requirements for nondefense sectors of the economy in any determination of the Secretary of Defense as to how certain research and development funds are to be spent.

Title VII: Authorization of Appropriations - Authorizes appropriations.