Poland and Hungary Democracy Act of 1989

Poland and Hungary Democracy Act of 1989 - Title I: Enterprise Funds in Poland and Hungary - Authorizes appropriations to the President for promoting the development of the Hungarian and Polish private sectors through the support of a Polish-American Enterprise Fund and a Hungarian-American Enterprise Fund.

Allows the President to designate two private, nonprofit organizations as the Funds. Requires the President to designate an executive agency to grant such monies to the Funds. Permits the agency to use a specified amount of such monies for carrying out functions under this title. Makes certain commodities eligible for assistance programs under the Agricultural Act of 1949 and the Agricultural Trade Development and Assistance Act of 1954 available to the Funds to generate local currencies.

Authorizes grants to be made to the Funds only if the Funds are in compliance with this title. Provides for annual audits of the Funds. Requires the Funds to ensure that: (1) each recipient of Fund assistance keeps separate accounts and financial records; and (2) the Funds have access to such records for audit purposes. Directs each Fund to publish annual reports.

Title II: Labor Market Transition - Requires the Secretary of Labor to provide technical assistance to Poland and Hungary for the implementation of labor market reform and to facilitate adjustment during the period of economic transition and reform.

Authorizes the Secretary to transfer a specified amount from Department of Labor funds to provide such assistance.

Title III: Environmental Initiatives - Authorizes the Administrator of the Environmental Protection Agency to: (1) undertake environmental protection activities in Hungary and Poland; and (2) use specified amounts of funds made available for FY 1990 through 1992 under the Clean Water Act and other authorizing statutes to carry out such activities.

Requires the Administrator to: (1) establish an air quality monitoring network in the Krakow metropolitan area; and (2) improve water quality and the availability of drinking water in such area.

Directs the Administrator to work with U.S. and Hungarian officials and private parties to establish and support a center in Budapest, Hungary, for facilitating cooperative environmental activities between governmental experts and U.S. and Eastern and Western European organizations.