A bill to authorize a program of fiscal assistance during economic recessions and to authorize a program of targeted fiscal assistance, and for other purposes.

(Measure passed House, amended, roll call #25 (214-179))

Amends the State and Local Fiscal Assistance Act of 1972 to add a fourth title, "Fiscal Assistance During Periods of Recession," which authorizes the Secretary of the Treasury to make payments to State and local governments during calendar quarters in which there is a decline in real wages, salaries, and the gross national product. Authorizes appropriations of up to $1,000,000,000 for such payments made during the calendar quarters of fiscal year 1980. Establishes ceilings on appropriations for each such quarter. Requires one-third of such appropriations to be allocated to State governments and two-thirds to local governments, with one percent of the total going to territorial governments. Sets forth formulas for determining the amount of such allocations to State and local governments. Prohibits a unit of local government from receiving such payments if its per capita income exceeded 140 percent of the national or State-wide average. Prohibits such payments if they would amount to less than $1,500 in any calendar quarter.

Directs the Secretary to receive assurances from each State and unit of local government before issuing payments that: (1) standard fiscal, accounting, and auditing practices will be used; (2) the Secretary and the Comptroller General will be given access to documents in order to review compliance; (3) reports required by the Secretary will be furnished; (4) the State or unit of local government will comply with provisions of law prohibiting discrimination on the basis of race, color, national origin, age, or handicapped condition; (5) the State or unit of local government will comply with the wage standards under the Davis-Bacon Act; and (6) expenditure of payments received will be in accordance with laws and procedures applicable to a State's or unit of local government's own revenues. Authorizes the Secretary to withhold payments for a failure to comply with requirements of this title.

Directs the Secretary to submit annual and quarterly reports to the Congress when payments have been made under such program. Grants the Secretary authority to prescribe rules to implement this Act. Establishes procedures which enable the Congress to veto such rules.

Authorizes appropriations as may be necessary for administration of this Act. Authorizes appropriations for such countercyclical payments to Puerto Rico, Guam, the Northern Mariana Islands, American Samoa, and the Virgin Islands. Sets forth a formula for determining the amount of such payments. Permits the governments of the territories to allocate portions of such payments to their local governments as they deem appropriate.

Adds a fifth title, "Targeted Fiscal Assistance" which authorizes the Secretary to make additional payments to units of local government experiencing higher rates of unemployment. Authorizes appropriations of $150,000,000 for fiscal year 1980. Increases the authorization to $200,000,000 if the unemployment rate in the first quarter of 1980 exceeds five percent. Allocates one percent of such total appropriation to territorial governments. Sets forth formulas for determining eligibility and amounts of such payments. Limits the amount that units of local government in any one State may receive to 12.5 percent of the total targeted fiscal assistance funds made available. Prohibits a unit of local government from receiving such assistance if the rate of growth in real wages and salaries throughout the unit over the past three years exceeded 150 percent of the national average. Prohibits a unit of local government from receiving such assistance if its per capita income exceeded 135 percent of the national or State-wide average. Authorizes the Secretary of the Treasury, upon request, to compute a unit of local government's share of targeted fiscal assistance on the basis of recent unemployment rates if an area experiences a substantial increase in unemployment due to the closing of major industrial facilities.

Directs the Secretary to receive assurances from each unit of local government identical to those required under title IV before issuing payments. Authorizes the Secretary to withhold payments to enforce compliance.

Directs the Secretary to issue such payments by: (1) 90 days from the enactment of an appropriation Act; or (2) April 1, 1980, whichever is earlier. Requires the Secretary to submit an annual report to the Congress on the targeted fiscal assistance program. Empowers the Secretary to promulgate regulations to implement such program. Establishes procedures which enable the Congress to veto such regulations. Authorizes necessary appropriations for administrative expenses.

Authorizes appropriations and establishes formulas for issuing fiscal assistance payments to Puerto Rico, Guam, the Northern Mariana Islands, American Samoa, and the Virgin Islands. Authorizes the governments of the territories to allocate appropriate portions of such payments to their local governments.

Repeals title II of the Public Works Employment Act of 1976.