II

104TH CONGRESS

1ST SESSION S. 192

To prohibit the use of certain assistance provided under the Housing and

Community Development Act of 1974 to encourage plant closings and

the resultant relocation of employment, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 11 (legislative day, JANUARY 10), 1995

Mr. FEINGOLD (for himself and Mr. KOHL) introduced the following bill;

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To prohibit the use of certain assistance provided under

the Housing and Community Development Act of 1974

to encourage plant closings and the resultant relocation

of employment, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. PROHIBITION OF USE OF CERTAIN ASSISTANCE

4 TO ENCOURAGE PLANT CLOSINGS AND RE5 SULTANT RELOCATION OF EMPLOYMENT.

6 (a) AUTHORIZATIONS.—Section 103 of the Housing

7 and Community Development Act of 1974 (42 U.S.C.

8 5303) is amended—
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•S 192 IS

1 (1) by inserting ‘‘(a)’’ before ‘‘The Secretary’’;

2 and

3 (2) by adding at the end the following new sub4 section:

5 ‘‘(b) PROHIBITION OF USE OF ASSISTANCE TO EN6 COURAGE PLANT CLOSINGS AND RESULTANT RELOCA7 TION OF EMPLOYMENT.—

8 ‘‘(1) IN GENERAL.—Notwithstanding any other

9 provision of law, no amount from a grant made

10 under section 106 shall be used for any activity that

11 is intended or is likely to—

12 ‘‘(A) facilitate the closing of an industrial

13 or commercial plant or the substantial reduc14 tion of operations of a plant; and

15 ‘‘(B) result in the relocation or expansion

16 of a plant from one area to another area.

17 ‘‘(2) NOTICE.—The Secretary shall, by notice

18 published in the Federal Register, establish such re19 quirements as may be necessary to implement this

20 subsection. Such notice shall be published as a pro21 posed regulation and take effect upon publication.

22 The Secretary shall issue final regulations, taking

23 into account public comments received by the Sec24 retary.’’.
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•S 192 IS

1 (b) SPECIAL PURPOSE GRANTS.—Section 107 of the

2 Housing and Community Development Act of 1974 (42

3 U.S.C. 5307) is amended by adding at the end the follow4 ing new subsection:

5 ‘‘(g) PROHIBITION OF USE OF ASSISTANCE TO EN6 COURAGE PLANT CLOSINGS AND RESULTANT RELOCA7 TION OF EMPLOYMENT.—

8 ‘‘(1) IN GENERAL.—Notwithstanding any other

9 provision of law, no amount from a grant made

10 under this section shall be used for any activity that

11 is intended or is likely to—

12 ‘‘(A) facilitate the closing of an industrial

13 or commercial plant or the substantial reduc14 tion of operations of a plant; and

15 ‘‘(B) result in the relocation or expansion

16 of a plant from one area to another area.

17 ‘‘(2) NOTICE.—The Secretary shall, by notice

18 published in the Federal Register, establish such re19 quirements as may be necessary to implement this

20 subsection. Such notice shall be published as a pro21 posed regulation and take effect upon publication.

22 The Secretary shall issue final regulations, taking

23 into account public comments received by the Sec24 retary.’’.
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•S 192 IS

1 (c) ECONOMIC DEVELOPMENT GRANTS.—Section

2 108(q) of the Housing and Community Development Act

3 of 1974 (42 U.S.C. 5308(q)) is amended by adding at the

4 end the following new paragraph:

5 ‘‘(5) PROHIBITION OF USE OF ASSISTANCE TO

6 ENCOURAGE PLANT CLOSINGS AND RESULTANT RE7 LOCATION OF EMPLOYMENT.—

8 ‘‘(A) IN GENERAL.—Notwithstanding any

9 other provision of law, no amount from a grant

10 made under this subsection shall be used for

11 any activity that is intended or is likely to—

12 ‘‘(i) facilitate the closing of an indus13 trial or commercial plant or the substantial

14 reduction of operations of a plant; and

15 ‘‘(ii) result in the relocation or expan16 sion of a plant from one area to another

17 area.

18 ‘‘(B) NOTICE.—The Secretary shall, by no19 tice published in the Federal Register, establish

20 such requirements as may be necessary to im21 plement this paragraph. Such notice shall be

22 published as a proposed regulation and take ef23 fect upon publication. The Secretary shall issue
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1 final regulations, taking into account public

2 comments received by the Secretary.’’.

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