Title: Community Economic Assistance Act of 2017
Policy area: Taxation

Summary:
Community Economic Assistance Act of 2017
This bill amends the Internal Revenue Code to provide for the establishment of community economic assistance zones that are eligible for certain tax deductions and credits.
A zone must be nominated by the governor of the state where it is located and designated by the Department of the Treasury. A nominated area must:
For businesses or individuals located in or investing in a zone, the bill allows:
Treasury must approve community economic development plans using specified criteria and may award grants for assessments to develop the plans.
The Department of Commerce must deploy teams to provide support and assistance to a region if: (1) it is requested by the governor, and (2) the region is experiencing or threatened with an abrupt rise of unemployment or other specified economic hardships.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 142 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                 S. 142

To expand certain empowerment zone provisions to communities receiving 
  a Worker Adjustment and Retraining Notification Act notice, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 12, 2017

  Mr. Casey (for himself and Ms. Klobuchar) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To expand certain empowerment zone provisions to communities receiving 
  a Worker Adjustment and Retraining Notification Act notice, 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. SHORT TITLE.

    This Act may be cited as the ``Community Economic Assistance Act of 
2017''.

SEC. 2. EXTENSION OF EMPOWERMENT ZONE PROVISIONS TO CERTAIN 
              COMMUNITIES.

    (a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after subchapter U the following new subchapter:

         ``Subchapter U-1--Community Economic Assistance Zones

``Sec. 1397G. Designation of community economic assistance zones.
``Sec. 1397H. Incentives for community economic assistance zones.

``SEC. 1397G. DESIGNATION OF COMMUNITY ECONOMIC ASSISTANCE ZONES.

    ``(a) In General.--For purposes of this title, the term `community 
economic assistance zone' means any area--
            ``(1) which is nominated by the governor or governors of 
        the State or States in which it is located for designation as a 
        community economic assistance zone (hereafter in this section 
        referred to as a `nominated area', and
            ``(2) which the Secretary designates as a community 
        economic assistance zone, after consultation with--
                    ``(A) the Secretary of Labor, and
                    ``(B) in the case of an area on an Indian 
                reservation, the Secretary of the Interior.
    ``(b) Designation Based on Loss of Employment, etc.--
            ``(1) In general.--Except as otherwise provided in this 
        section, a nominated area designated as a community economic 
        assistance zone under this subsection shall be--
                    ``(A) a nominated area--
                            ``(i) where--
                                    ``(I) a facility is located with 
                                respect to which a notice was issued 
                                after December 31, 2014, under section 
                                3 of the Worker Adjustment and 
                                Retraining Notification Act (29 U.S.C. 
                                2102) with respect to 250 or more 
                                employees, or
                                    ``(II) where 100 or more employees 
                                with respect to which such a notice was 
                                issued reside,
                            ``(ii) where the number of employees--
                                    ``(I) with respect to which the 
                                notice was issued (in the case of an 
                                area described in clause (i)(I)), or
                                    ``(II) the number of employees who 
                                are described in clause (i)(II) (in any 
                                other case),
                        is equal to or greater than 0.5 percent of the 
                        employed population of the metropolitan 
                        statistical area (as determined by the 
                        Secretary), and
                            ``(iii) where a loss of employment 
                        satisfying the requirements applicable to such 
                        notice under clauses (i) and (ii) actually 
                        occurs,
                    ``(B) a nominated area which the Secretary, in 
                consultation with the Secretaries of Labor and 
                Commerce, determines has been or will be seriously 
                impacted by changes in trade through loss of employment 
                (directly or indirectly), taking into account the 
                number of individuals certified as eligible to apply 
                for trade adjustment assistance under chapter 2 of 
                title II of the Trade Act of 1974 or who are receiving 
                benefits under such chapter, or
                    ``(C) a nominated area which satisfies not less 
                than two of the conditions described in paragraph (2).
            ``(2) Conditions described.--The conditions described in 
        this subparagraph are the following:
                    ``(A) The area is designated by the governor of the 
                State as an energy-transitioning community.
                    ``(B) The area, at the time of nomination--
                            ``(i) has a composite index value, as 
                        determined by the Appalachian Regional 
                        Commission, among the lowest 10 percent of 
                        counties in the State,
                            ``(ii) is a low-income community (as 
                        defined in section 45D(e)), or
                            ``(iii) has an unemployment rate which is 8 
                        percent or greater, or which is 6.5 percent or 
                        greater and is equal to or greater than 125 
                        percent of the average unemployment rate of the 
                        State.
                    ``(C) Tax revenues collected in the area decreased, 
                not due to any changes in tax law or policy, by at 
                least--
                            ``(i) 7 percent as compared to the 
                        preceding year, or
                            ``(ii) an average of 10 percent over the 
                        preceding 3 years.
                    ``(D) The number of business establishments in the 
                area decreased significantly during the preceding year 
                or on average during the preceding 3 years, as 
                determined by the Secretary.
                    ``(E) The area is among the 10 percent of counties 
                nationally which have experienced the largest increases 
                in unemployment and the largest decreases in 
                manufacturing over the preceding 3 years, as determined 
                by the Secretary.
            ``(3) Energy-transitioning communities.--For purposes of 
        paragraph (2)(A)--
                    ``(A) In general.--The term `energy-transitioning 
                communities' means those nominated areas where the 
                Secretary of Labor, in consultation with the Secretary 
                of Energy, determines there is a high concentration of 
                jobs in industries or at facilities directly affected 
                by an energy source transition.
                    ``(B) Energy source transition.--For purposes of 
                subparagraph (A), the term `energy source transition' 
                means--
                            ``(i) a situation in which the occurrence 
                        of a shift from the use of a type of fossil 
                        fuel to use of other sources of energy is 
                        followed by the closing of a facility, or 
                        layoff of employees at a facility, that mines, 
                        extracts, produces, processes, or utilizes 
                        fossil fuels to generate electricity, and
                            ``(ii) another situation as determined by 
                        the Secretary of Labor, in consultation with 
                        the Secretary of Energy, which is indicative of 
                        new demands or burdens on affected employees or 
                        employees in affected industries due to a 
                        significant change in the source of energy used 
                        by the facility or industry involved.
            ``(4) Eligibility criteria.--A nominated area shall be 
        eligible for designation under this subsection only if it meets 
        the requirements of section 1392(a)(1) and subparagraphs (A), 
        (B), and (C) of section 1392(a)(3).
    ``(c) Period for Which Designation Is in Effect.--Any designation 
of an area as a community economic assistance zone shall remain in 
effect during the period beginning on January 1, 2017, and ending on 
the date that is 5 years after the latest designation of such area as a 
community economic assistance zone.
    ``(d) Limitation Relating to State Population.--An area shall not 
be designated as a community economic assistance zone under subsection 
(b) if such designation would result in more than 10 percent of the 
population of the State residing in such a zone (determined by 
aggregating all such zones within the State).
    ``(e) Coordination With Treatment of Renewal Communities, 
Empowerment Zones, and Enterprise Communities.--For purposes of this 
title, the designation under any other provision of this title of any 
area as a renewal community, empowerment zone, or enterprise community 
shall cease to be in effect as of the date that the designation of any 
portion of such area as a community economic assistance zone takes 
effect.

``SEC. 1397H. INCENTIVES FOR COMMUNITY ECONOMIC ASSISTANCE ZONES.

    ``(a) Employment Credit.--
            ``(1) In general.--Section 1396 shall be applied--
                    ``(A) by treating any reference to an empowerment 
                zone as a reference to a community economic assistance 
                zone,
                    ``(B) by treating any reference to an employer as a 
                reference to a qualified employer, and
                    ``(C) without respect to subsection (d)(1)(B) 
                thereof.
            ``(2) Qualified zone employer.--For purposes of paragraph 
        (1), with respect to a taxable year, the term `qualified 
        employer' means any employer other than an excepted taxpayer 
        described in subsection (g).
    ``(b) Increase in Expensing Under Section 179.--
            ``(1) In general.--Section 1397A shall be applied--
                    ``(A) by treating any reference to an empowerment 
                zone as a reference to a community economic assistance 
                zone,
                    ``(B) by treating any reference to an enterprise 
                zone business as a reference to a community economic 
                assistance zone business,
                    ``(C) by treating any reference to qualified zone 
                property as a reference to qualified community economic 
                assistance zone property, and
                    ``(D) by substituting `20 percent of such 
                limitation' for `$35,000' in subsection (a)(1)(A) 
                thereof.
            ``(2) Community economic assistance zone business.--For 
        purposes of this subsection, the term `community economic 
        assistance zone business' means--
                    ``(A) any business entity, and
                    ``(B) any proprietorship,
        other than an excepted taxpayer described in subsection (g), 
        which would be a qualified business entity (as defined in 
        section 1397C(b)) or a qualified proprietorship (as defined in 
        section 1397C(c)) if section 1397C were applied by substituting 
        `community economic assistance zone' for `empowerment zone' 
        each place it appears.
    ``(c) Nonrecognition of Gain on Rollover of Community Economic 
Assistance Zone Investments.--
            ``(1) In general.--In the case of any sale of a qualified 
        community economic assistance zone asset held by the taxpayer 
        for more than 1 year and with respect to which such taxpayer 
        elects the application of this subsection, gain from such sale 
        shall be recognized only to the extent that the amount realized 
        on such sale exceeds--
                    ``(A) the cost of any qualified community economic 
                assistance zone asset (with respect to the same zone as 
                the asset sold) purchased by the taxpayer during the 
                60-day period beginning on the date of such sale, 
                reduced by
                    ``(B) any portion of such cost previously taken 
                into account under this subsection.
            ``(2) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Qualified community economic assistance zone 
                asset.--The term `qualified community economic 
                assistance zone asset' means any property which would 
                be a qualified community asset (as defined in section 
                1400F(b)) if in section 1400F(b)--
                            ``(i) `after December 31, 2016' were 
                        substituted for `after December 31, 2001, and 
                        before January 1, 2010' each place it appears,
                            ``(ii) `after December 31, 2016' were 
                        substituted for `before January 1, 2010' in 
                        paragraph (4)(B)(i) thereof,
                            ``(iii) references to community economic 
                        assistance zone businesses (as defined in 
                        subsection (b)(2) of this section) were 
                        substituted for references to renewal community 
                        businesses, and
                            ``(iv) references to community economic 
                        assistance zones were substituted for 
                        references to renewal communities.
                    ``(B) Other rules.--The rules of paragraphs (2), 
                (3), (4), and (5) of section 1397B(b) shall apply--
                            ``(i) by treating any reference to an 
                        enterprise zone business as a reference to a 
                        community economic assistance zone business (as 
                        defined in subsection (b)(2)),
                            ``(ii) by treating any reference to a 
                        qualified empowerment zone asset as a reference 
                        to a qualified community economic assistance 
                        zone asset, and
                            ``(iii) by treating any reference to 
                        subsection (a) of section 1397B as a reference 
                        to paragraph (1) of this subsection.
            ``(3) Excepted taxpayers.--Paragraph (1) shall not apply in 
        the case of an excepted taxpayer described in subsection (g).
    ``(d) 3-Year Carryback of Net Operating Losses.--
            ``(1) In general.--If a portion of any net operating loss 
        of a taxpayer for any taxable year is a qualified community 
        economic assistance zone loss, section 172(b)(1) shall be 
        applied with respect to such portion--
                    ``(A) by substituting `3 taxable years' for `2 
                taxable years' in subparagraph (A)(i), and
                    ``(B) by not taking such portion into account in 
                determining any eligible loss of the taxpayer under 
                subparagraph (E) thereof for the taxable year.
            ``(2) Qualified community economic assistance zone loss.--
        For purposes of paragraph (1), the term `qualified community 
        economic assistance zone loss' means the portion of the net 
        operating loss (as defined in section 172(c)) for the taxable 
        year which is attributable to deductions arising from--
                    ``(A) losses in a community economic assistance 
                zone,
                    ``(B) expenses paid or incurred within a community 
                economic assistance zone, and
                    ``(C) expenses paid or incurred with respect to 
                property placed in service in a community economic 
                assistance zone,
        during either the taxable year in which the designation of such 
        zone goes into effect under section 1397G or the immediately 
        succeeding taxable year, whichever is elected by the taxpayer.
            ``(3) Excepted taxpayers.--Paragraph (1) shall not apply in 
        the case of an excepted taxpayer described in subsection (g).
    ``(e) Credit to Holders of Community Economic Support Bonds.--
            ``(1) In general.--With respect to a taxpayer holding a 
        community economic support bond, such bond shall be treated in 
        the same manner as a Gulf tax credit bond under section 
        1400N(l), applied--
                    ``(A) by substituting `community economic support 
                bond' for `Gulf tax credit bond' each place it appears 
                in paragraphs (1), (2), (3), and (7) thereof, and
                    ``(B) without regard to paragraphs (4) and (5) 
                thereof.
            ``(2) Community economic support bond.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `community economic 
                support bond' means any bond issued as part of an issue 
                if--
                            ``(i) the bond is issued by a State in 
                        which a community economic assistance area (as 
                        defined in section 45D(f)(3)(B)) is located,
                            ``(ii) 95 percent or more of the proceeds 
                        of such issue are to be used in accordance with 
                        the priorities outlined in the community 
                        economic development plan approved under 
                        section 6 of the Community Economic Assistance 
                        Act of 2017 to implement the strategies and 
                        objectives under such plan described in section 
                        6(3) of such Act,
                            ``(iii) the Governor of such State 
                        designates such bond for purposes of this 
                        subsection,
                            ``(iv) the bond is a general obligation of 
                        such State and is in registered form (within 
                        the meaning of section 149(a)),
                            ``(v) the maturity of such bond does not 
                        exceed 15 years, and
                            ``(vi) the bond is issued after the 
                        designation of such zone goes into effect under 
                        section 1397G, and before such designation ends 
                        under section 1397G(c).
                    ``(B) Aggregate limit on bond designations.--The 
                maximum aggregate face amount of bonds which may be 
                designated under this subsection by the Governor of a 
                State shall not exceed $100,000,000 per community 
                economic assistance area located in the State.
                    ``(C) Special rules relating to arbitrage.--A bond 
                which is part of an issue shall not be treated as a 
                community economic support bond unless, with respect to 
                the issue of which the bond is a part, the issuer 
                satisfies the arbitrage requirements of section 148 
                with respect to proceeds of the issue and any loans 
                made with such proceeds.
            ``(3) Excepted taxpayers.--Paragraph (1) shall not apply in 
        the case of an excepted taxpayer described in subsection (g).
    ``(f) Qualified Community Economic Assistance Zone Property.--For 
purposes of this section, the term `qualified community economic 
assistance zone property' means any property which would be qualified 
zone property for purposes of section 1397D if such section were 
applied by substituting `community economic assistance zone' for 
`empowerment zone' each place it appears.
    ``(g) Taxpayers Excepted.--With respect to any community economic 
assistance zone, an excepted taxpayer described in this subsection is--
            ``(1) an entity that operates a facility in such zone with 
        respect to which a notice under section 3 of the Worker 
        Adjustment and Retraining Notification Act (29 U.S.C. 2102) was 
        issued, if such notice caused the region to be designated as 
        such a zone, and
            ``(2) any entity that would be treated as a single employer 
        with such an entity under the rules of subsection (a) or (b) of 
        section 52 or subsection (m) or (o) of section 414.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 1 of 
the Internal Revenue Code of 1986 is amended by inserting after the 
item relating to subchapter U the following new item:

        ``subchapter u-1--community economic assistance zones''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.

SEC. 3. 15-YEAR DEPRECIATION FOR CERTAIN REBUILT AND RETROFITTED 
              COMMUNITY ECONOMIC ASSISTANCE ZONE PROPERTY.

    (a) In General.--Subparagraph (E) of section 168(e)(3) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of clause (viii),
            (2) by striking the period at the end of clause (ix) and 
        inserting ``, and'', and
            (3) by adding at the end the following new clause:
                            ``(x) any qualified rebuilt or retrofitted 
                        community economic assistance zone property.''.
    (b) Qualified Rebuilt or Retrofitted Community Economic Assistance 
Zone Property.--Subsection (e) of section 168 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(9) Qualified rebuilt or retrofitted community economic 
        assistance zone property.--
                    ``(A) In general.--The term `qualified rebuilt or 
                retrofitted community economic assistance zone 
                property' means property placed in service in a 
                community economic assistance zone by a qualified 
                taxpayer during the period the designation of such zone 
                is in effect under section 1397G which relates to the 
                rebuilding or retrofitting of--
                            ``(i) any qualified community economic 
                        assistance zone property (as defined in section 
                        1397H(f)), and
                            ``(ii) any residential real property 
                        located in a community economic assistance zone 
                        which is acquired by the taxpayer by purchase 
                        (as defined in section 179(d)(2)) during such 
                        period,
                if such property was unoccupied and had been deemed 
                condemned, neglected, or derelict as of the time of 
                acquisition by the taxpayer.
                    ``(B) Qualified taxpayer.--For purposes of this 
                paragraph, the term `qualified taxpayer' means a 
                taxpayer other than an excepted taxpayer (within the 
                meaning of section 1397H(g)).''.

SEC. 4. INCREASE IN START-UP EXPENDITURES FOR COMMUNITY ECONOMIC 
              ASSISTANCE ZONE BUSINESSES.

    Paragraph (3) of section 195(b) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(3) Special rule for community economic assistance zone 
        businesses.--In the case of any start-up expenditures made 
        within a community economic assistance zone during the period 
        the designation of such zone is in effect under section 1397G--
                    ``(A) such expenditures shall be treated separately 
                from other start-up expenditures of the taxpayer for 
                the taxable year, and
                    ``(B) in determining the deduction under paragraph 
                (1) with respect to such expenditures within such zone, 
                paragraph (1)(A)(ii) shall be applied--
                            ``(i) by substituting `$30,000' for 
                        `$5,000', and
                            ``(ii) by substituting `$120,000' for 
                        `$50,000'.''.

SEC. 5. INCREASE IN NEW MARKETS TAX CREDIT DESIGNATION FOR COMMUNITY 
              ECONOMIC ASSISTANCE ZONES.

    Subsection (f) of section 45D of the Internal Revenue Code of 1986 
is amended--
            (1) by striking ``The limitation'' in paragraph (2) and 
        inserting ``Except as provided in paragraph (3), the 
        limitation'',
            (2) by redesignating paragraph (3) as paragraph (4),
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Allocation of limitation for calendar years after 
        2016.--
                    ``(A) In general.--In the case of any calendar year 
                described in paragraph (1)(G) beginning after December 
                31, 2016, the limitation under paragraph (1) shall be 
                increased by $500,000,000, and such increase shall be 
                allocated as provided in paragraph (2) among qualified 
                community development entities located in community 
                economic assistance areas.
                    ``(B) Community economic assistance area.--For 
                purposes of subparagraph (A), the term `community 
                economic assistance area' means an area which--
                            ``(i) is a community economic assistance 
                        zone, and
                            ``(ii) has a community economic development 
                        plan approved under section 6 of the Community 
                        Economic Assistance Act of 2017.
                    ``(C) Use of increase.--Any amount of such increase 
                which is so allocated to such an entity shall be used 
                only in accordance with the priorities outlined in such 
                community economic development plan to implement the 
                strategies and objectives under such plan described in 
                section 6(3) of Community Economic Assistance Act of 
                2017.'',
            (4) by striking ``paragraph (2)'' in paragraph (4), as so 
        redesignated, and inserting ``paragraph (2) or (3)'', and
            (5) by striking the second sentence of paragraph (4), as so 
        redesignated, and inserting the following: ``Any carryover 
        under the preceding sentence of an amount allocated under 
        paragraph (3) shall be allocated first among qualified 
        community development entities located in community economic 
        assistance areas, and may then be allocated among any qualified 
        community development entities selected by the Secretary under 
        paragraph (2). No amount may be carried under the preceding 
        sentences to any calendar year after 2024.''.

SEC. 6. APPROVAL OF COMMUNITY ECONOMIC DEVELOPMENT PLANS.

    A community economic development plan for a region shall be 
considered approved under this section if each of the following 
criteria are satisfied:
            (1) The plan is submitted to the Secretary of the Treasury 
        in such form, and containing such information, as the Secretary 
        may require.
            (2) The plan contains a certification that the plan was 
        developed and approved through a process that included 
        participation from the following:
                    (A) State, Indian tribal, and local governments and 
                agencies or instrumentalities of State, Indian tribal, 
                and local governments.
                    (B) State planning boards, workforce investment 
                boards, chambers of commerce, and economic development 
                organizations, if relevant.
                    (C) Local businesses.
                    (D) Labor and health organizations.
                    (E) Public school systems and institutions of 
                higher education (as defined in section 101 of the 
                Higher Education Act of 1965 (20 U.S.C. 1001)).
                    (F) Religious and other community-based groups in 
                the region, including those that provide assistance to 
                the workers of the region and the families of the 
                workers.
                    (G) Other public community institutions, such as 
                library and park systems.
                    (H) Members of the public, including unemployed or 
                soon to be unemployed workers.
            (3) The Secretary determines that the plan--
                    (A) ascertains the severity of an anticipated or 
                existing economic dislocation of the region, including 
                consideration of measures of unemployment rates and 
                employment opportunities;
                    (B) assesses the capacity of the region to respond 
                to such economic dislocation and the needs of the 
                region, as the region undertakes economic advancement 
                or adjustment, including with respect to--
                            (i) the diversity of industries in the 
                        region;
                            (ii) the skills of the labor force in the 
                        region;
                            (iii) the condition of the labor market of 
                        the region;
                            (iv) the availability of financial 
                        resources in the region;
                            (v) the quality and availability of 
                        educational facilities, including 2-year 
                        institutions of higher education and vocational 
                        institutions, that serve the region; and
                            (vi) the infrastructure of the region;
                    (C) includes a plan to use a local workforce and, 
                when necessary, to train a local workforce;
                    (D) addresses the need of the region to attract 
                investment, create jobs, increase wages, improve 
                educational opportunities, and expand the availability 
                of broadband Internet access;
                    (E) leverages the region's economic strengths and 
                outlines targeted investments to develop competitive 
                advantages to execute the objectives outlined, 
                including a plan to utilize a local workforce and 
                recently dislocated workers and, when necessary, train 
                a local workforce;
                    (F) is the result of collaboration across a wide 
                range of stakeholders;
                    (G) outlines a strategy which connects the region 
                to drivers of regional economic growth;
                    (H) proposes a strategy for focusing on increased 
                access to high quality, affordable, stable housing and 
                improved public safety; and
                    (I) discusses the anticipated benefits execution of 
                the plan will deliver for community integration, 
                safety, employment outcomes, and home weatherization 
                and energy efficiency, and the expected contribution of 
                the project to the inclusion of individuals with 
                disabilities.

SEC. 7. GRANTS TO CARRY OUT ASSESSMENTS REQUIRED FOR DEVELOPMENT OF 
              COMMUNITY ECONOMIC DEVELOPMENT PLANS.

    (a) In General.--The Secretary of the Treasury may award a grant to 
an eligible entity involved in the development of a community economic 
development plan described in section 6 to carry out such assessments 
and other activities as may be required for the plan to meet the 
requirements of section 6(3).
    (b) Eligible Entities.--For purposes of this section, an eligible 
entity is a local or Indian tribal government or an agency or 
instrumentality of such a government.
    (c) Grant Amount.--The Secretary may not award a grant under this 
section in excess of $1,000,000.
    (d) Matching Requirement.--
            (1) In general.--An eligible entity receiving a grant under 
        this section shall provide non-Federal matching funds equal to 
        not less than 20 percent of the amount of the grant.
            (2) In-kind support.--Matching funds may include in-kind 
        support.

SEC. 8. FEDERAL ECONOMIC SUPPORT TEAM.

    (a) Deployment Required.--The Secretary of Commerce shall deploy a 
targeted investment generating economic recovery team to a region to 
provide support and assistance to such region if--
            (1) the Governor of the State requests such deployment; and
            (2) the Secretary of Commerce determines that the region is 
        experiencing an actual or threatened abrupt rise of 
        unemployment or economic hardship due to the closing or 
        curtailment of a major source of employment, significant 
        industry transition, or other mitigating economic factors, 
        including international trade.
    (b) Support and Assistance.--
            (1) Development of economic recovery and employment plan.--
        In providing support and assistance to a region under 
        subsection (a), a targeted investment generating economic 
        recovery team shall work in coordination with a State or 
        regional economic development and workforce agency and the 
        Rapid Response team of the Department of Labor to assist in the 
        development of an economic recovery and employment plan for the 
        region, including by identifying grants, sources of State and 
        Federal funding, and unemployment insurance resources 
        (including short-time compensation) which may be beneficially 
        utilized in the region.
            (2) Cases of facilities shutdown.--In addition to the 
        support and assistance provided under paragraph (1), in a case 
        in which the actual or threatened abrupt rise of unemployment 
        or economic hardship in the region involves the shutdown of a 
        facility of a business unit, the team shall work in 
        coordination with the Administrator of the Small Business 
        Administration to assess the feasibility and advisability of an 
        employee purchase of such business unit.
            (3) Coordination.--In addition to the support and 
        assistance provided by a team under paragraph (1) to a region, 
        the team, in coordination with the Secretary of Labor, shall--
                    (A) coordinate the activities of all Federal 
                agencies relating to the provision of assistance to the 
                region in response to the actual or threatened abrupt 
                rise of unemployment or economic hardship referred to 
                in subsection (a)(2); and
                    (B) act as a liaison between the region and all 
                Federal agencies providing assistance in response to 
                such actual or threatened abrupt rise of unemployment 
                or economic hardship, including, as the case may be, 
                the following:
                            (i) The Department of Agriculture.
                            (ii) The Department of Commerce.
                            (iii) The Department of Defense.
                            (iv) The Department of Education.
                            (v) The Department of Energy.
                            (vi) The Department of Health and Human 
                        Services.
                            (vii) The Department of Housing and Urban 
                        Development.
                            (viii) The Department of Labor.
                            (ix) The Department of Transportation.
                            (x) The Department of the Treasury.
                            (xi) The National Economic Council.
                            (xii) The Small Business Administration.
                            (xiii) The Department of Veterans Affairs.
                                 <all>