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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4277 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4277

    To establish the National Full Employment Trust Fund to create 
              employment opportunities for the unemployed.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 28, 2012

 Mr. Conyers introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committee on Ways and Means, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
    To establish the National Full Employment Trust Fund to create 
              employment opportunities for the unemployed.

    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 shall be cited as the ``Humphrey-Hawkins 21st Century Full 
Employment and Training Act of 2012''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) The Full Employment and Balanced Growth Act of 1978 
        established an interim 5-year target of 3 percent unemployment 
        for individuals 20 years of age and older, and 4 percent for 
        individuals age 16 and over within 5 years, with full 
        employment to be achieved ``as soon as practicable'' 
        thereafter.
            (2) The Federal Government has previously established full 
        employment as a national goal in national legislation, 
        including the Employment Act of 1946 and the Full Employment 
        and Balanced Growth Act of 1978.
            (3) Pursuant to these Acts, the Congress declared it is the 
        continuing policy and responsibility of the Federal Government 
        to use all practicable means to create and maintain conditions 
        which promote useful employment opportunities for all who seek 
        them, including the self-employed. Pursuant to these Acts, the 
        Congress declared and established as a national goal the 
        fulfillment of the right to full opportunities for useful paid 
        employment at fair rates of compensation of all individuals 
        able, willing, and seeking to work.
            (4) The Nation has suffered substantial unemployment and 
        underemployment, and idleness of productive resources over 
        prolonged periods of time, imposing numerous economic and 
        social costs on the Nation.
            (5) The Nation has been deprived of the full supply of 
        goods and services, the full utilization of labor and capital 
        resources, and the related increases in economic well-being 
        that would occur under conditions of genuine full employment.
            (6) The current output of goods and services is 
        insufficient to meet pressing national priorities for 
        infrastructure, transportation, energy, education, health care, 
        child and elder care, and many other necessary public and human 
        services.
            (7) Unemployment and underemployment expose many workers 
        and families to significant, social, psychological and 
        physiological costs, including disruption of family life, the 
        loss of individual dignity and self-respect, and the 
        aggravation of physical and psychological illnesses.
            (8) Persisting unemployment and underemployment have 
        devastating financial consequences, resulting in the loss of 
        income and spending power for families, and interfering with 
        their ability to save and accumulate assets for a secure family 
        life and retirement. High levels of unemployment and inadequate 
        consumer demand also contribute to poor conditions for retail 
        businesses, manufacturers and many other firms to grow and 
        prosper. In the real estate sector, the Congress finds that 
        continuing high levels of unemployment contribute to 
        foreclosures, evictions, and commercial vacancies, undermining 
        the quality of neighborhood and community life, and hampering 
        prospects for economic recovery and national prosperity.
            (9) The historic promise of this earlier legislation has 
        not been fully realized, and we re-declare and reaffirm our 
        support for achieving a national goal of jobs for all at living 
        wages.
            (10) The United States has a duty under Articles 55 and 56 
        of the United Nations Charter to promote ``full employment'' 
        and the ``universal respect for, and observance of, human 
        rights and fundamental freedoms for all without distinction as 
        to race, sex, language, or religion''. The human rights the 
        United States has a duty to promote pursuant to this obligation 
        are set forth in the Universal Declaration of Human Rights. 
        Article 23 of the Universal Declaration states that ``Everyone 
        has the right to work'' and to ``just and favorable 
        remuneration'' that insures for his or her family ``an 
        existence worthy of human dignity, and supplemented, if 
        necessary, by other means of social protection''.
            (11) The Congress has a strong interest in seeking the 
        progressive reduction and elimination of job disparities among 
        groups of workers who experience chronically higher rates of 
        unemployment and underemployment.
            (12) Even at the top of the business cycle, when national 
        unemployment rates drop to the 4 percent to 5 percent range, 
        job vacancy surveys show that the economy does not provide 
        enough jobs to employ everyone who wants to work. Reliance on 
        direct job creation to close the economy's job gap is 
        especially important at such times, because it provides a means 
        of creating additional jobs without adding significantly to 
        inflationary pressures, a very difficult goal to achieve at the 
        top of the business cycle via macroeconomic policy 
        interventions.
            (13) The Congress intends to maximize the creation of 
        private, public and nonprofit sector jobs through improved use 
        of general economic and structural policies, including measures 
        to encourage private sector investment and capital formation; 
        an increased public investment in research and development, 
        infrastructure, energy, education, public services and the 
        environment, and other essential goods and services.
    (b) Purpose.--It is the purpose of the Humphrey Hawkins 21st 
Century Full Employment and Training Act to expedite progress to 
fulfill the right to useful work at living wages for all persons 
seeking employment, as promptly as possible and at the earliest 
practicable date by establishing a Full Employment Trust Fund to fund 
and operate a national program of public service employment and to 
provide additional labor market opportunities to complement those 
offered by the existing private, public, and nonprofit sectors.

SEC. 3. DEFINITIONS.

    In this Act the following definitions apply:
            (1) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given such term in section 102(17) of the Housing and 
        Community Development Act (42 U.S.C. 5302(17)).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (3) Small business.--The term ``small business'' has the 
        meaning given the term ``small business concern'' under section 
        3 of the Small Business Act (15 U.S.C. 632).
            (4) State.--The term ``State'' has the meaning given such 
        term in section 102(2) of the Housing and Community Development 
        Act (42 U.S.C. 5302(2)).
            (5) Trust fund.--The term ``Trust Fund'' refers to the Full 
        Employment Trust Fund established under section 4.
            (6) Unit of general local government.--The term ``unit of 
        general local government'' has the meaning given such term in 
        section 102(1) of the Housing and Community Development Act (42 
        U.S.C. 5302(1)).
            (7) Urban county.--The term ``urban county'' has the 
        meaning given such term in section 102(6) of the Housing and 
        Community Development Act (42 U.S.C. 5302(6)).

SEC. 4. ESTABLISHMENT OF FULL EMPLOYMENT NATIONAL TRUST FUND.

    (a) In General.--The Secretary shall establish a Full Employment 
National Trust Fund (in this Act referred to as the ``Trust Fund'') for 
the purposes of--
            (1) providing funding for the Employment Opportunity Grants 
        established in section 5; and
            (2) issuing funds to the Secretary to fund programs under 
        the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).
    (b) Financing the Trust Fund.--Subject to the availability of 
appropriations for this purpose, the Secretary of the Treasury shall 
annually make available to the Secretary of Labor for deposit into the 
Trust Fund an amount equal to the amount collected for that year 
through the tax described in section 4475 of the Internal Revenue Code 
of 1986, as added by section 8.
    (c) Loans From the Federal Reserve System.--
            (1) In general.--If the amount available in the Trust Fund 
        for allocation under section 5 is insufficient to prevent the 
        national unemployment rate from rising more than one full 
        percentage during a fiscal year in which the national 
        unemployment rate is increasing, the Board of Governors of the 
        Federal Reserve System shall lend such additional amounts to 
        the Trust Fund as are necessary to allow the Secretary of Labor 
        to make such additional allocations under section 5 as are 
        necessary to restore the national unemployment rate to its 
        allowable 1 percent range of upward variation.
            (2) Repayment.--Amounts lent to the Trust Fund by the Board 
        of Governors of the Federal Reserve System under paragraph (1) 
        shall be repaid by the Trust Fund over 10 years, with interest 
        payable at the same average rate the Federal Government 
        contracts to pay on 10-year bonds sold during the period 
        beginning 45 days prior to the date the loans were made to the 
        Trust Fund and ending 45 days following such date.
    (d) Separate Trust Fund Accounts.--The Trust Fund shall consist of 
2 separate accounts as follows:
            (1) One account shall consist of 67 percent of the funds 
        made available for deposit under subsection (b) and shall be 
        for the Employment Opportunity Grants established in section 5.
            (2) The other account shall consist of 33 percent of the 
        funds made available for deposit under subsection (b) and shall 
        be available to the Secretary to fund programs under the 
        Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).
    (e) Web Site.--The Secretary shall establish an Internet Web site 
to serve as an information clearinghouse for job training and 
employment opportunities funded by the Trust Fund.
    (f) Training Stipend.--The Secretary shall promulgate regulations 
to encourage entities that receive funds under programs under the 
Workforce Investment Act of 1998 (20 U.S.C. 2801 et seq.) that are 
funded by the account described in subsection (c)(2) to, whenever 
possible, establish a training stipend for individuals who participate 
in such programs.

SEC. 5. EMPLOYMENT OPPORTUNITY GRANTS TO STATES, LOCAL GOVERNMENTS, AND 
              INDIAN TRIBES.

    (a) Employment Grants Contingent on Level of Unemployment.--
            (1) First year.--Subject to the availability of funds in 
        the Trust Fund for activities under this section, if, at the 
        beginning of a month in the first fiscal year for which funds 
        are available in the Trust Fund for activities under this 
        section, the United States has unemployment according to the 
        most recent monthly publications of the Bureau of Labor 
        Statistics of the Department of Labor, the Secretary shall make 
        grants for such month to States, unit of general local 
        governments, or Indian tribes to carry out activities in 
        accordance with this section. The total amount awarded under 
        this paragraph for such fiscal year shall not exceed 90 percent 
        of the funds available in the Trust Fund for such fiscal year.
            (2) Succeeding years.--Subject to the availability of funds 
        in the Trust Fund for activities under this section, if, at the 
        beginning of a fiscal year subsequent to the fiscal year 
        described in paragraph (1), the United States has unemployment 
        according to the most recent monthly publications of the Bureau 
        of Labor Statistics of the Department of Labor, the Secretary 
        shall make grants for such fiscal year to States, units of 
        general local government, Indian tribes, or community-based 
        organizations to carry out activities in accordance with this 
        section. The total amount awarded under this paragraph for a 
        fiscal year shall not exceed 90 percent of the funds available 
        in the Trust Fund for such fiscal year.
    (b) Purpose.--Grants made under this section shall be for creating 
employment opportunities for unemployed and underemployed individuals 
in activities designed to address community needs and reduce 
disparities in health, housing, education, job readiness, and public 
infrastructure that have impeded these communities from realizing their 
full economic potential.
    (c) Use of Funds.--A recipient of a grant under this section shall 
use the grant for the following purposes:
            (1) Construction, re-construction, rehabilitation, and site 
        improvements of residences or public facilities, including 
        improvements in the energy efficiency or environmental quality 
        of such public facilities or residences.
            (2) Provision of human services, including child care 
        services, health care services, education, or recreational 
        programs.
            (3) The remediation and demolition of vacant and abandoned 
        properties to eliminate blight.
            (4) Programs that provide disadvantaged youth with 
        opportunities for employment, education, leadership 
        development, entrepreneurial skills development, and training.
            (5) The painting and repair of schools, community centers, 
        and libraries.
            (6) The restoration and revitalization of abandoned and 
        vacant properties to alleviate blight in distressed and 
        foreclosure-affected areas of a unit of general local 
        government.
            (7) The expansion of emergency food programs to reduce 
        hunger and promote family stability.
            (8) The augmentation of staffing in Head Start, child care, 
        and other early childhood education programs to promote school 
        readiness and early literacy.
            (9) The renovation and enhancement of maintenance of parks, 
        playgrounds, and other public spaces.
            (10) Supplemental labor for existing federally or State-
        funded infrastructure projects.
            (11) Supplemental labor for existing federally or State-
        funded projects aimed at expanding access to broadband or 
        wireless Internet service.
            (12) Other activities that address public needs and which 
        can be implemented as quickly as the activities described in 
        paragraphs (1) through (11).
    (d) Consultation Required.--Each grant recipient shall consult with 
community leaders, including labor organizations, nonprofit community-
based organizations, local government officials, and local residents 
to--
            (1) assess the needs of the community served by the grant 
        recipient;
            (2) determine sectors of the local economy that are in need 
        of employees;
            (3) make recommendations for new employment opportunities 
        in the areas described in subsection (c); and
            (4) assess the effectiveness of job placements made under 
        this Act.
    (e) Conditions.--As a condition of receiving a grant under this 
section, a grant recipient shall--
            (1) agree to comply with the nondiscrimination policy set 
        forth under section 109 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5309);
            (2) with respect to the funds allocated for each project 
        funded under the grant--
                    (A) allocate not less than 80 percent for wages, 
                benefits, and support services, including child care 
                services, for individuals, including supervisory and 
                management personnel, employed on such project; and
                    (B) allocate the remaining funds to defray the 
                nonlabor costs of the project, including necessary 
                capital goods, supplies, materials, rental payments, 
                transportation costs, and other similar expenses;
            (3) use revenue generated by a project funded under the 
        grant (whether in the form of fees paid for services provided 
        by the project, reimbursements for expenses incurred in 
        undertaking the project, or income from the sale of goods or 
        services produced by the project) in excess of the costs of the 
        project to--
                    (A) supplement the project budget; or
                    (B) support other projects funded by the grant in 
                conformity with the purposes of this Act and subject to 
                the same rules and requirements that apply to other 
                such projects;
            (4) ensure that employment on any project funded under the 
        grant is carried out in accordance with subsection (c);
            (5) institute an outreach program with community 
        organizations and service providers in low-income communities 
        to provide information about placements funded under the grant 
        to individuals suited to perform community infrastructure work; 
        and
            (6) ensure that not less than 35 percent of individuals 
        employed under the grant are individuals described in paragraph 
        (4)(B) of subsection (f).
    (f) Employment Described.--Employment funded under this section 
shall meet the following specifications:
            (1) Any employer that employs an individual whose 
        employment is funded under the grant shall--
                    (A) continue to employ such individual for not less 
                than 12 months, subject to the individual's 
                satisfactory performance of the reasonable requirements 
                of the individual's employment;
                    (B) if such an individual desires full-time 
                employment, employ such individual for not less than 35 
                hours per week and not more than 40 hours, and if such 
                an individual desires part-time work, employ such 
                individual for a mutually agreed number of hours per 
                week that is less than 35 hours per week;
                    (C) comply with responsible contractor standards, 
                as determined by the relevant official in the unit of 
                local general government;
                    (D) provide compensation to such individual on a 
                per hour basis equal to the compensation provided to 
                public sector employees who perform similar work in the 
                community where such individual is employed or, if no 
                public sector employees perform such similar work, 
                provide compensation to such individual that is 
                comparable to the compensation provided to private-
                sector employees who perform similar work in the 
                community where such individual is employed;
                    (E) if such employment is in construction, provide 
                compensation to any laborer or mechanic employed under 
                the grant at rates not less than those prevailing on 
                similar construction in the locality as determined by 
                the Secretary in accordance with subchapter IV of 
                chapter 31 of title 40, United States Code; and
                    (F) offer assistance to such individual in applying 
                for social benefits for which such individual or the 
                members of such individual's family may be eligible.
            (2) No individual whose employment is funded under the 
        grant may work for an employer at which a collective bargaining 
        agreement is in effect covering the same or similar work, 
        unless--
                    (A) the consent of the union at such employer is 
                obtained; and
                    (B) negotiations have taken place between such 
                union and the employer as to the terms and conditions 
                of such employment.
            (3)(A)(i) An employer may not employ an individual for a 
        position funded under this Act, if--
                            (I) employing such individual will result 
                        in the layoff or partial displacement (such as 
                        a reduction in hours, wages, or employee 
                        benefits) of an existing employee of the 
                        employer; or
                            (II) such individual will perform the same 
                        or substantially similar work that had 
                        previously been performed by an employee of the 
                        employer--
                                    (aa) has been laid off or partially 
                                displaced (as such term is described in 
                                subclause (I)); and
                                    (bb) has not been offered by the 
                                employer, to be restored to the 
                                position the employee had immediately 
                                prior to being laid off or partially 
                                displaced.
            (ii) For the purposes of this paragraph, a position shall 
        be considered to have been eliminated by an employer if the 
        position has remained unfilled and the unit or organization has 
        not sought to fill such position for at least a period of one 
        month.
            (iii) An individual may not be hired for a position funded 
        under this Act in a manner that infringes upon the promotional 
        opportunities of an existing employee (as of the date of such 
        hiring) of an employer receiving funds under this Act.
            (B) A community-based organization receiving funds under 
        this Act may not use such funds to provide services or 
        functions that are customarily provided by a unit of general 
        local government where such services or functions are provided 
        by the organization.
            (4) An individual hired to fill a job funded under this Act 
        shall register with and be certified by the appropriate State 
        employment service as eligible for such employment and shall 
        satisfy at least one of the following conditions as of the date 
        the individual is so hired:
                    (A) The individual is receiving unemployment 
                insurance benefits.
                    (B) The individual is unemployed, a member of a 
                targeted group as defined by section 51(d) of the 
                Internal Revenue Code of 1986, and has been seeking 
                employment, with the assistance of the State employment 
                service, for not less than 30 days prior to the date on 
                which the individual is so hired.
                    (C) The individual is unemployed and seeking 
                employment, with the assistance of the State employment 
                service, for not less than 60 days prior to the date 
                the individual is so hired.
                    (D) The individual has been employed part-time 
                while seeking full-time employment with the assistance 
                of the State employment service for not less than 13 
                weeks prior to the date the individual is so hired.
            (5) An individual employed in a job funded under this Act 
        shall--
                    (A) notwithstanding the individual's employment in 
                a job funded under this Act, be registered with the 
                appropriate State employment service as available for 
                and seeking work;
                    (B) respond appropriately, as a person available 
                for and seeking employment, to referrals by the State 
                employment service concerning available jobs;
                    (C) apply for suitable jobs for which the 
                individual has been referred by the State employment 
                service; and
                    (D) accept a suitable job if such job is offered to 
                the individual.
        For purposes of subparagraphs (C) and (D), the term ``suitable 
        job'' means a job that a newly unemployed individual receiving 
        unemployment insurance benefits would be required to accept in 
        order to avoid forfeiting the individual's eligibility for 
        continued receipt of unemployment insurance benefits under the 
        laws of the State in which the individual is employed in a job 
        funded under this Act.
            (6) An individual employed in a job funded under this Act 
        who terminates that employment in order to accept other 
        employment, and who subsequently is terminated from that other 
        employment without fault on the individual's part, shall be 
        eligible for immediate reemployment in a job funded under this 
        Act.
            (7) In hiring individuals for positions funded under this 
        Act, or using funds under this Act to continue to provide 
        employee compensation for existing employees, an employer shall 
        comply with all applicable Federal, State, and local laws, 
        personnel policies and regulations, and collective bargaining 
        agreements, as if such individual was hired, or such employee 
        compensation were provided, without assistance under this Act.
            (8) An individual hired for a position funded under this 
        Act shall--
                    (A) be considered an employee of the employer, by 
                which such individual was hired; and
                    (B) receive the same employee compensation, have 
                the same rights and responsibilities and job 
                classifications, and be subject to the same job 
                standards, employer policies, and collective bargaining 
                agreements as if such individual were hired without 
                assistance under this Act.
    (g) Award of Grants.--
            (1) Selection criteria.--In selecting a project to receive 
        funding for employing the individuals described in subsection 
        (f)(4), a grant recipient shall consider--
                    (A) the input of all participants in a proposed 
                project, including labor organizations, community 
                organizations, and employers;
                    (B) the needs of the community intended to benefit 
                from such project;
                    (C) the long-term goals and short-term objectives 
                to address such needs; and
                    (D) any recommendations for programs and activities 
                developed to meet such needs.
            (2) Priority given to certain projects.--A grant recipient 
        under this section shall give priority to projects that--
                    (A) serve areas with the greatest level of economic 
                need, determined for each such area by--
                            (i) the unemployment rate;
                            (ii) the rate of poverty;
                            (iii) the number of census tracts with 
                        concentrated poverty;
                            (iv) the lowest median income;
                            (v) the percentage of vacant and abandoned 
                        properties;
                            (vi) the percentage of home foreclosures; 
                        and
                            (vii) the indicators of poor resident 
                        health, including high rates of chronic 
                        disease, infant mortality, and life expectancy;
                    (B) integrate education and job skills training, 
                including basic skills instruction and secondary 
                education services;
                    (C) coordinate to the maximum extent feasible with 
                pre-apprenticeship and apprenticeship programs; and
                    (D) provide jobs in sectors where job growth is 
                most likely, as determined by the Secretary, and in 
                which career advancement opportunities exist to 
                maximize long-term, sustainable employment for 
                individuals after employment funded under this Act 
                ends.
    (h) Allocation of Grants.--
            (1) Grants for indian tribes and deposits into 
        discretionary fund.--Not more than 5 percent of the funds 
        available in the Trust Fund for activities under this section 
        for any fiscal year shall be reserved for grants to Indian 
        tribes and for deposit into a discretionary fund established by 
        the Secretary for national demonstration projects and multi-
        jurisdictional projects.
            (2) Grants to states.--Not more than 30 percent of the 
        funds available in the Trust Fund for activities under this 
        section for any fiscal year shall be allocated to States to 
        distribute to units of general local government that do not 
        qualify for funds under paragraph (3).
            (3) Grants to units of general local government.--Grant 
        funds that are not reserved under paragraphs (1) and (2) shall 
        be allocated to metropolitan cities and urban counties using 
        the formula under section 106(b) of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5306(b)).
    (i) Reports.--
            (1) Reports by grant recipients.--Not later than 90 days 
        after the last day of each fiscal year in which assistance 
        under this section is furnished, a recipient of a grant under 
        this section shall submit to the Secretary a report containing 
        the following:
                    (A) A description of the progress made in 
                accomplishing the objectives of this chapter.
                    (B) A summary of the use of the grant during the 
                preceding fiscal year.
                    (C) For units of general local government, a 
                listing of each entity receiving funds and the amount 
                of such grants, as well as a brief summary of the 
                projects funded for each such unit, the extent of 
                financial participation by other public or private 
                entities, and the impact on employment and economic 
                activity of such projects during the previous fiscal 
                year.
                    (D) For States, a listing of each unit of general 
                local government receiving funds and the amount of such 
                grants, as well as a brief summary of the projects 
                funded for each such unit, the extent of financial 
                participation by other public or private entities, and 
                the impact on employment and economic activity of such 
                projects during the previous fiscal year.
                    (E) The amount of money received and expended 
                during the fiscal year.
                    (F) The number of individuals assisted under the 
                grant whose household income is low-income, very low-
                income, or extremely low-income (as such terms are used 
                for purposes of the Housing Act of 1937 and the 
                regulations thereunder (42 U.S.C. 1437 et seq.)).
                    (G) The amount expended on administrative costs 
                during the fiscal year.
            (2) Report to congress.--At least once every 6 months, the 
        Secretary shall submit to Congress a report on the use of 
        grants awarded under this section and any progress in job 
        creation.
    (j) Establishment of Arbitration Procedure.--
            (1) In general.--Each grant recipient under this section 
        shall agree to the arbitration procedure described in this 
        subsection to resolve disputes described in subsections (k) and 
        (l).
            (2) Written grievances.--
                    (A) In general.--If an employee (or an employee 
                representative) wishes to use the arbitration procedure 
                described in this subsection, such party shall file a 
                written grievance within the time period required under 
                subsection (k) or (l), as applicable, simultaneously 
                with the chief executive officer of a unit or State 
                involved in the dispute and the Secretary.
                    (B) In-person meeting.--Not later than 10 days 
                after the date of the filing of the grievance, the 
                chief executive officer (or the designee of the chief 
                executive officer) shall have an in-person meeting with 
                the party to resolve the grievance.
            (3) Arbitration.--
                    (A) Submission.--If the grievance is not resolved 
                within the time period described in paragraph (2)(B), a 
                party, by written notice to the other party involved, 
                may submit such grievance to binding arbitration before 
                a qualified arbitrator who is jointly selected and 
                independent of the parties.
                    (B) Appointment by secretary.--If the parties 
                cannot agree on an arbitrator within 5 days of 
                submitting the grievance to binding arbitration under 
                subparagraph (A), one of the parties may submit a 
                request to the Secretary to appoint a qualified and 
                independent arbitrator. The Secretary shall appoint a 
                qualified and independent arbitrator within 15 days 
                after receiving the request.
                    (C) Hearing.--Unless the parties mutually agree 
                otherwise, the arbitrator shall conduct a hearing on 
                the grievance and issue a decision not later than 30 
                days after the date such arbitrator is selected or 
                appointed.
                    (D) Costs.--
                            (i) In general.--Except as provided in 
                        clause (ii), the cost of an arbitration 
                        proceeding shall be divided evenly between the 
                        parties to the arbitration.
                            (ii) Exception.--If a grievant prevails 
                        under an arbitration proceeding, the recipient 
                        of a grant under this section shall pay the 
                        cost of such proceeding, including attorneys' 
                        fees.
    (k) Disputes Concerning the Allotment of Funds.--In a case where a 
unit of general local government that is an entitlement community or a 
State has improperly requested funds for services or functions to be 
provided by a community-based organization that are customarily 
provided by the unit or, in the case of a State, by a unit located in 
the nonentitlement area of the State where services or functions will 
be provided by the organization, an employee or employee representative 
of the unit or State may file a grievance under subsection (j) not 
later than 15 days after public notice of an intent to submit an 
application under this section is published. Upon receiving a copy of 
the grievance, the Secretary shall withhold the funds subject to such 
grievance, unless and until the grievance is resolved under subsection 
(j), by the parties or an arbitrator in favor of providing such 
funding.
    (l) All Other Disputes.--
            (1) In general.--In the case of a dispute not covered under 
        subsection (k) concerning compliance with the requirements of 
        this section by a recipient of a grant under this section, an 
        employee or employee representative of the unit or State may 
        file a grievance under subsection (k) not later than 90 days 
        after the dispute arises. In such cases, an arbitrator may 
        award such remedies as are necessary to make the grievant 
        whole, including the reinstatement of a displaced employee or 
        the payment of back wages, and may submit recommendations to 
        the Secretary to ensure further compliance with the 
        requirements of this title, including recommendations to 
        suspend or terminate funding, or to require the repayment of 
        funds received under this title during any period of 
        noncompliance.
            (2) Existing grievance procedures.--A party to a dispute 
        described in paragraph (1) may use the existing grievance 
        procedure of a recipient of a grant under this section, or the 
        arbitration procedure described in this subsection, to resolve 
        such dispute.
    (m) Party Defined.--For purposes of subsections (j), (k), and (l), 
the term ``party'' means the employee and the recipient of a grant 
under this section, involved in a dispute described in subsection (k) 
or (l).
    (n) Whistleblower Hotline; Enforcement by the Secretary.--
            (1) Whistleblower hotline.--The Secretary shall post on a 
        publicly accessible Internet Web site of the Department of 
        Labor the contact information for reporting noncompliance with 
        this title by a State, unit of general local government, 
        community-based organization, or individual receiving funding 
        under this title.
            (2) Enforcement by the secretary.--
                    (A) In general.--If the Secretary receives a 
                complaint alleging noncompliance with this title, the 
                Secretary may conduct an investigation and after notice 
                and an opportunity for a hearing, may order such 
                remedies as the Secretary determines appropriate, 
                including--
                            (i) withholding further funds under this 
                        title to a noncompliant entity;
                            (ii) requiring the entity to make an 
                        injured party whole; or
                            (iii) requiring the entity to repay to the 
                        Secretary any funds received under this title 
                        during any period of noncompliance.
                    (B) Recommendation by an arbitrator.--A remedy 
                described in subparagraph (A) may also be ordered by 
                the Secretary upon recommendation by an arbitrator 
                appointed or selected under this section.

SEC. 6. NATIONAL EMPLOYMENT CONFERENCE.

    (a) In General.--The Secretary shall convene a national employment 
conference not later than 1 year after the date of enactment of this 
Act, to bring together leaders of small, medium, and large businesses, 
labor, government, and all other interested parties.
    (b) Subject.--The subject of the conference shall be employment, 
with particular attention to structural unemployment and the plight of 
disadvantaged youth. The conference shall also focus on issues such as 
adequate and effective incentives for employers to hire the long-term 
unemployed.

SEC. 7. INCLUSION OF MINORITY-SERVING, COMMUNITY-BASED ORGANIZATIONS IN 
              WIA STATE AND LOCAL WORKFORCE INVESTMENT BOARDS.

    (a) State Boards.--Section 111(b)(1)(C)(v) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2821(b)(1)(C)(v)) is amended by 
inserting before the semicolon ``(including not less than 25 percent of 
the chief executive officers of minority-serving, community-based 
organizations)''.
    (b) Local Boards.--Section 117(b)(2)(A)(iv) of such Act (29 U.S.C. 
2832(b)(2)(A)(iv)) is amended by inserting ``, and not less than 25 
percent of the chief executive officers of minority-serving, community-
based organizations'' after ``present''.

SEC. 8. TAX ON SECURITIES TRANSACTIONS.

    (a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is 
amended by inserting after subchapter B the following new subchapter:

             ``Subchapter C--Tax on Securities Transactions

``Sec. 4475. Tax on securities transactions.

``SEC. 4475. TAX ON SECURITIES TRANSACTIONS.

    ``(a) Imposition of Tax.--
            ``(1) Stocks.--There is hereby imposed a tax on each 
        covered transaction in a stock contract of 0.25 percent of the 
        value of the instruments involved in such transaction.
            ``(2) Futures.--There is hereby imposed a tax on each 
        covered transaction in a futures contract of 0.02 percent of 
        the value of the instruments involved in such transaction.
            ``(3) Swaps.--There is hereby imposed a tax on each covered 
        transaction in a swaps contract of 0.02 percent of the value of 
        the instruments involved in such transaction.
            ``(4) Credit default swaps.--There is hereby imposed a tax 
        on each covered transaction in a credit default swaps contract 
        of 0.02 percent of the value of the instruments involved in 
        such transaction.
            ``(5) Options.--There is hereby imposed a tax on each 
        covered transaction in an options contract with respect to a 
        transaction described in paragraph (1), (2), (3), or (4) of--
                    ``(A) the rate imposed with respect to such 
                underlying transaction under paragraph (1), (2), (3), 
                or (4) (as the case may be), multiplied by
                    ``(B) the premium paid on such option.
    ``(b) Exception for Retirement Accounts, etc.--No tax shall be 
imposed under subsection (a) with respect to any stock contract, 
futures contract, swaps contract, credit default swap, or options 
contract which is held in any plan, account, or arrangement described 
in section 220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, or 530.
    ``(c) Exception for Interests in Mutual Funds.--No tax shall be 
imposed under subsection (a) with respect to the purchase or sale of 
any interest in a regulated investment company (as defined in section 
851) or of any derivative of such an interest.
    ``(d) By Whom Paid.--
            ``(1) In general.--The tax imposed by this section shall be 
        paid by--
                    ``(A) in the case of a transaction which occurs on 
                a trading facility located in the United States, such 
                trading facility, or
                    ``(B) in any other case, the purchaser with respect 
                to the transaction.
            ``(2) Withholding if buyer is not a united states person.--
        See section 1447 for withholding by seller if buyer is a 
        foreign person.
    ``(e) Covered Transaction.--The term `covered transaction' means 
any purchase or sale if--
            ``(1) such purchase or sale occurs on a trading facility 
        located in the United States, or
            ``(2) the purchaser or seller is a United States person.
    ``(f) Administration.--The Secretary shall carry out this section 
in consultation with the Securities and Exchange Commission and the 
Commodity Futures Trading Commission.''.
    (b) Withholding.--Subchapter A of chapter 3 of such Code is amended 
by adding at the end the following new section:

``SEC. 1447. WITHHOLDING ON SECURITIES TRANSACTIONS.

    ``(a) In General.--In the case of any outbound securities 
transaction, the transferor shall deduct and withhold a tax equal to 
the tax imposed under section 4475 with respect to such transaction.
    ``(b) Outbound Securities Transaction.--For purposes of this 
section, the term `outbound securities transaction' means any covered 
transaction to which section 4475(a) applies if--
            ``(1) such transaction does not occur on a trading facility 
        located in the United States, and
            ``(2) the purchaser with respect to such transaction is not 
        a United States person.''.
    (c) Clerical Amendments.--
            (1) The table of subchapters for chapter 36 of the Internal 
        Revenue Code of 1986 is amended by inserting after the item 
        relating to subchapter B the following new item:

``Subchapter C. Tax on Securities Transactions''.
            (2) The table of sections for subchapter A of chapter 3 of 
        such Code is amended by adding at the end the following new 
        item:

``Sec. 1447. Withholding on securities transactions.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to transactions occurring more than 180 days after the date of 
the enactment of this Act.
                                 <all>
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