I 

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. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act shall be cited as the ‘‘Humphrey-Hawkins 

5 21st Century Full Employment and Training Act of 

6 2012’’. 

7 SEC. 2. FINDINGS AND PURPOSE. 

8 (a) FINDINGS.—The Congress finds the following: 


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1 (1) The Full Employment and Balanced 

2 Growth Act of 1978 established an interim 5-year 

3 target of 3 percent unemployment for individuals 20 

4 years of age and older, and 4 percent for individuals 

5 age 16 and over within 5 years, with full employ6 ment to be achieved ‘‘as soon as practicable’’ there7 after. 

8 (2) The Federal Government has previously es9 tablished full employment as a national goal in na10 tional legislation, including the Employment Act of 

11 1946 and the Full Employment and Balanced 

12 Growth Act of 1978. 

13 (3) Pursuant to these Acts, the Congress de14 clared it is the continuing policy and responsibility 

15 of the Federal Government to use all practicable 

16 means to create and maintain conditions which pro17 mote useful employment opportunities for all who 

18 seek them, including the self-employed. Pursuant to 

19 these Acts, the Congress declared and established as 

20 a national goal the fulfillment of the right to full op21 portunities for useful paid employment at fair rates 

22 of compensation of all individuals able, willing, and 

23 seeking to work. 

24 (4) The Nation has suffered substantial unem25 ployment and underemployment, and idleness of proVerDate Mar 15 2010 00:44 Apr 04, 2012 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4277.IH H4277

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1 ductive resources over prolonged periods of time, im2 posing numerous economic and social costs on the 

3 Nation. 

4 (5) The Nation has been deprived of the full 

5 supply of goods and services, the full utilization of 

6 labor and capital resources, and the related increases 

7 in economic well-being that would occur under condi8 tions of genuine full employment. 

9 (6) The current output of goods and services is 

10 insufficient to meet pressing national priorities for 

11 infrastructure, transportation, energy, education, 

12 health care, child and elder care, and many other 

13 necessary public and human services. 

14 (7) Unemployment and underemployment ex15 pose many workers and families to significant, so16 cial, psychological and physiological costs, including 

17 disruption of family life, the loss of individual dig18 nity and self-respect, and the aggravation of physical 

19 and psychological illnesses. 

20 (8) Persisting unemployment and underemploy21 ment have devastating financial consequences, re22 sulting in the loss of income and spending power for 

23 families, and interfering with their ability to save 

24 and accumulate assets for a secure family life and 

25 retirement. High levels of unemployment and inadVerDate Mar 15 2010 00:44 Apr 04, 2012 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4277.IH H4277

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1 equate consumer demand also contribute to poor 

2 conditions for retail businesses, manufacturers and 

3 many other firms to grow and prosper. In the real 

4 estate sector, the Congress finds that continuing 

5 high levels of unemployment contribute to fore6 closures, evictions, and commercial vacancies, under7 mining the quality of neighborhood and community 

8 life, and hampering prospects for economic recovery 

9 and national prosperity. 

10 (9) The historic promise of this earlier legisla11 tion has not been fully realized, and we re-declare 

12 and reaffirm our support for achieving a national 

13 goal of jobs for all at living wages. 

14 (10) The United States has a duty under Arti15 cles 55 and 56 of the United Nations Charter to 

16 promote ‘‘full employment’’ and the ‘‘universal re17 spect for, and observance of, human rights and fun18 damental freedoms for all without distinction as to 

19 race, sex, language, or religion’’. The human rights 

20 the United States has a duty to promote pursuant 

21 to this obligation are set forth in the Universal Dec22 laration of Human Rights. Article 23 of the Uni23 versal Declaration states that ‘‘Everyone has the 

24 right to work’’ and to ‘‘just and favorable remunera25 tion’’ that insures for his or her family ‘‘an existence 


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1 worthy of human dignity, and supplemented, if nec2 essary, by other means of social protection’’. 

3 (11) The Congress has a strong interest in 

4 seeking the progressive reduction and elimination of 

5 job disparities among groups of workers who experi6 ence chronically higher rates of unemployment and 

7 underemployment. 

8 (12) Even at the top of the business cycle, when 

9 national unemployment rates drop to the 4 percent 

10 to 5 percent range, job vacancy surveys show that 

11 the economy does not provide enough jobs to employ 

12 everyone who wants to work. Reliance on direct job 

13 creation to close the economy’s job gap is especially 

14 important at such times, because it provides a 

15 means of creating additional jobs without adding 

16 significantly to inflationary pressures, a very dif17 ficult goal to achieve at the top of the business cycle 

18 via macroeconomic policy interventions. 

19 (13) The Congress intends to maximize the cre20 ation of private, public and nonprofit sector jobs 

21 through improved use of general economic and struc22 tural policies, including measures to encourage pri23 vate sector investment and capital formation; an in24 creased public investment in research and develop25 ment, infrastructure, energy, education, public servVerDate Mar 15 2010 00:44 Apr 04, 2012 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4277.IH H4277

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1 ices and the environment, and other essential goods 

2 and services. 

3 (b) PURPOSE.—It is the purpose of the Humphrey 

4 Hawkins 21st Century Full Employment and Training 

5 Act to expedite progress to fulfill the right to useful work 

6 at living wages for all persons seeking employment, as 

7 promptly as possible and at the earliest practicable date 

8 by establishing a Full Employment Trust Fund to fund 

9 and operate a national program of public service employ10 ment and to provide additional labor market opportunities 

11 to complement those offered by the existing private, pub12 lic, and nonprofit sectors. 

13 SEC. 3. DEFINITIONS. 

14 In this Act the following definitions apply: 

15 (1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

16 has the meaning given such term in section 102(17) 

17 of the Housing and Community Development Act 

18 (42 U.S.C. 5302(17)). 

19 (2) SECRETARY.—The term ‘‘Secretary’’ means 

20 the Secretary of Labor. 

21 (3) SMALL BUSINESS.—The term ‘‘small busi22 ness’’ has the meaning given the term ‘‘small busi23 ness concern’’ under section 3 of the Small Business 

24 Act (15 U.S.C. 632). 


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1 (4) STATE.—The term ‘‘State’’ has the mean2 ing given such term in section 102(2) of the Hous3 ing and Community Development Act (42 U.S.C. 

4 5302(2)). 

5 (5) TRUST FUND.—The term ‘‘Trust Fund’’ re6 fers to the Full Employment Trust Fund established 

7 under section 4. 

8 (6) UNIT OF GENERAL LOCAL GOVERNMENT.— 

9 The term ‘‘unit of general local government’’ has the 

10 meaning given such term in section 102(1) of the 

11 Housing and Community Development Act (42 

12 U.S.C. 5302(1)). 

13 (7) URBAN COUNTY.—The term ‘‘urban coun14 ty’’ has the meaning given such term in section 

15 102(6) of the Housing and Community Development 

16 Act (42 U.S.C. 5302(6)). 

17 SEC. 4. ESTABLISHMENT OF FULL EMPLOYMENT NATIONAL 

18 TRUST FUND. 

19 (a) IN GENERAL.—The Secretary shall establish a 

20 Full Employment National Trust Fund (in this Act re21 ferred to as the ‘‘Trust Fund’’) for the purposes of— 

22 (1) providing funding for the Employment Op23 portunity Grants established in section 5; and 


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1 (2) issuing funds to the Secretary to fund pro2 grams under the Workforce Investment Act of 1998 

3 (29 U.S.C. 2801 et seq.). 

4 (b) FINANCING THE TRUST FUND.—Subject to the 

5 availability of appropriations for this purpose, the Sec6 retary of the Treasury shall annually make available to 

7 the Secretary of Labor for deposit into the Trust Fund 

8 an amount equal to the amount collected for that year 

9 through the tax described in section 4475 of the Internal 

10 Revenue Code of 1986, as added by section 8. 

11 (c) LOANS FROM THE FEDERAL RESERVE SYS12 TEM.— 

13 (1) IN GENERAL.—If the amount available in 

14 the Trust Fund for allocation under section 5 is in15 sufficient to prevent the national unemployment rate 

16 from rising more than one full percentage during a 

17 fiscal year in which the national unemployment rate 

18 is increasing, the Board of Governors of the Federal 

19 Reserve System shall lend such additional amounts 

20 to the Trust Fund as are necessary to allow the Sec21 retary of Labor to make such additional allocations 

22 under section 5 as are necessary to restore the na23 tional unemployment rate to its allowable 1 percent 

24 range of upward variation. 


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1 (2) REPAYMENT.—Amounts lent to the Trust 

2 Fund by the Board of Governors of the Federal Re3 serve System under paragraph (1) shall be repaid by 

4 the Trust Fund over 10 years, with interest payable 

5 at the same average rate the Federal Government 

6 contracts to pay on 10-year bonds sold during the 

7 period beginning 45 days prior to the date the loans 

8 were made to the Trust Fund and ending 45 days 

9 following such date. 

10 (d) SEPARATE TRUST FUND ACCOUNTS.—The Trust 

11 Fund shall consist of 2 separate accounts as follows: 

12 (1) One account shall consist of 67 percent of 

13 the funds made available for deposit under sub14 section (b) and shall be for the Employment Oppor15 tunity Grants established in section 5. 

16 (2) The other account shall consist of 33 per17 cent of the funds made available for deposit under 

18 subsection (b) and shall be available to the Secretary 

19 to fund programs under the Workforce Investment 

20 Act of 1998 (29 U.S.C. 2801 et seq.). 

21 (e) WEB SITE.—The Secretary shall establish an 

22 Internet Web site to serve as an information clearinghouse 

23 for job training and employment opportunities funded by 

24 the Trust Fund. 


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1 (f) TRAINING STIPEND.—The Secretary shall pro2 mulgate regulations to encourage entities that receive 

3 funds under programs under the Workforce Investment 

4 Act of 1998 (20 U.S.C. 2801 et seq.) that are funded by 

5 the account described in subsection (c)(2) to, whenever 

6 possible, establish a training stipend for individuals who 

7 participate in such programs. 

8 SEC. 5. EMPLOYMENT OPPORTUNITY GRANTS TO STATES, 

9 LOCAL GOVERNMENTS, AND INDIAN TRIBES. 

10 (a) EMPLOYMENT GRANTS CONTINGENT ON LEVEL

11 OF UNEMPLOYMENT.— 

12 (1) FIRST YEAR.—Subject to the availability of 

13 funds in the Trust Fund for activities under this 

14 section, if, at the beginning of a month in the first 

15 fiscal year for which funds are available in the Trust 

16 Fund for activities under this section, the United 

17 States has unemployment according to the most re18 cent monthly publications of the Bureau of Labor 

19 Statistics of the Department of Labor, the Secretary 

20 shall make grants for such month to States, unit of 

21 general local governments, or Indian tribes to carry 

22 out activities in accordance with this section. The 

23 total amount awarded under this paragraph for such 

24 fiscal year shall not exceed 90 percent of the funds 

25 available in the Trust Fund for such fiscal year. 


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1 (2) SUCCEEDING YEARS.—Subject to the avail2 ability of funds in the Trust Fund for activities 

3 under this section, if, at the beginning of a fiscal 

4 year subsequent to the fiscal year described in para5 graph (1), the United States has unemployment ac6 cording to the most recent monthly publications of 

7 the Bureau of Labor Statistics of the Department of 

8 Labor, the Secretary shall make grants for such fis9 cal year to States, units of general local government, 

10 Indian tribes, or community-based organizations to 

11 carry out activities in accordance with this section. 

12 The total amount awarded under this paragraph for 

13 a fiscal year shall not exceed 90 percent of the funds 

14 available in the Trust Fund for such fiscal year. 

15 (b) PURPOSE.—Grants made under this section shall 

16 be for creating employment opportunities for unemployed 

17 and underemployed individuals in activities designed to 

18 address community needs and reduce disparities in health, 

19 housing, education, job readiness, and public infrastruc20 ture that have impeded these communities from realizing 

21 their full economic potential. 

22 (c) USE OF FUNDS.—A recipient of a grant under 

23 this section shall use the grant for the following purposes: 

24 (1) Construction, re-construction, rehabilitation, 

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1 ties, including improvements in the energy efficiency 

2 or environmental quality of such public facilities or 

3 residences. 

4 (2) Provision of human services, including child 

5 care services, health care services, education, or rec6 reational programs. 

7 (3) The remediation and demolition of vacant 

8 and abandoned properties to eliminate blight. 

9 (4) Programs that provide disadvantaged youth 

10 with opportunities for employment, education, lead11 ership development, entrepreneurial skills develop12 ment, and training. 

13 (5) The painting and repair of schools, commu14 nity centers, and libraries. 

15 (6) The restoration and revitalization of aban16 doned and vacant properties to alleviate blight in 

17 distressed and foreclosure-affected areas of a unit of 

18 general local government. 

19 (7) The expansion of emergency food programs 

20 to reduce hunger and promote family stability. 

21 (8) The augmentation of staffing in Head 

22 Start, child care, and other early childhood edu23 cation programs to promote school readiness and 

24 early literacy. 


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1 (9) The renovation and enhancement of mainte2 nance of parks, playgrounds, and other public 

3 spaces. 

4 (10) Supplemental labor for existing federally 

5 or State-funded infrastructure projects. 

6 (11) Supplemental labor for existing federally 

7 or State-funded projects aimed at expanding access 

8 to broadband or wireless Internet service. 

9 (12) Other activities that address public needs 

10 and which can be implemented as quickly as the ac11 tivities described in paragraphs (1) through (11). 

12 (d) CONSULTATION REQUIRED.—Each grant recipi13 ent shall consult with community leaders, including labor 

14 organizations, nonprofit community-based organizations, 

15 local government officials, and local residents to— 

16 (1) assess the needs of the community served 

17 by the grant recipient; 

18 (2) determine sectors of the local economy that 

19 are in need of employees; 

20 (3) make recommendations for new employment 

21 opportunities in the areas described in subsection 

22 (c); and 

23 (4) assess the effectiveness of job placements 

24 made under this Act. 


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1 (e) CONDITIONS.—As a condition of receiving a grant 

2 under this section, a grant recipient shall— 

3 (1) agree to comply with the nondiscrimination 

4 policy set forth under section 109 of the Housing 

5 and Community Development Act of 1974 (42 

6 U.S.C. 5309); 

7 (2) with respect to the funds allocated for each 

8 project funded under the grant— 

9 (A) allocate not less than 80 percent for 

10 wages, benefits, and support services, including 

11 child care services, for individuals, including su12 pervisory and management personnel, employed 

13 on such project; and 

14 (B) allocate the remaining funds to defray 

15 the nonlabor costs of the project, including nec16 essary capital goods, supplies, materials, rental 

17 payments, transportation costs, and other simi18 lar expenses; 

19 (3) use revenue generated by a project funded 

20 under the grant (whether in the form of fees paid 

21 for services provided by the project, reimbursements 

22 for expenses incurred in undertaking the project, or 

23 income from the sale of goods or services produced 

24 by the project) in excess of the costs of the project 

25 to— 


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1 (A) supplement the project budget; or 

2 (B) support other projects funded by the 

3 grant in conformity with the purposes of this 

4 Act and subject to the same rules and require5 ments that apply to other such projects; 

6 (4) ensure that employment on any project 

7 funded under the grant is carried out in accordance 

8 with subsection (c); 

9 (5) institute an outreach program with commu10 nity organizations and service providers in low-in11 come communities to provide information about 

12 placements funded under the grant to individuals 

13 suited to perform community infrastructure work; 

14 and 

15 (6) ensure that not less than 35 percent of indi16 viduals employed under the grant are individuals de17 scribed in paragraph (4)(B) of subsection (f). 

18 (f) EMPLOYMENT DESCRIBED.—Employment funded 

19 under this section shall meet the following specifications: 

20 (1) Any employer that employs an individual 

21 whose employment is funded under the grant shall— 

22 (A) continue to employ such individual for 

23 not less than 12 months, subject to the individ24 ual’s satisfactory performance of the reasonable 

25 requirements of the individual’s employment; 


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1 (B) if such an individual desires full-time 

2 employment, employ such individual for not less 

3 than 35 hours per week and not more than 40 

4 hours, and if such an individual desires part5 time work, employ such individual for a mutu6 ally agreed number of hours per week that is 

7 less than 35 hours per week; 

8 (C) comply with responsible contractor 

9 standards, as determined by the relevant official 

10 in the unit of local general government; 

11 (D) provide compensation to such indi12 vidual on a per hour basis equal to the com13 pensation provided to public sector employees 

14 who perform similar work in the community 

15 where such individual is employed or, if no pub16 lic sector employees perform such similar work, 

17 provide compensation to such individual that is 

18 comparable to the compensation provided to 

19 private-sector employees who perform similar 

20 work in the community where such individual is 

21 employed; 

22 (E) if such employment is in construction, 

23 provide compensation to any laborer or me24 chanic employed under the grant at rates not 

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1 tion in the locality as determined by the Sec2 retary in accordance with subchapter IV of 

3 chapter 31 of title 40, United States Code; and 

4 (F) offer assistance to such individual in 

5 applying for social benefits for which such indi6 vidual or the members of such individual’s fam7 ily may be eligible. 

8 (2) No individual whose employment is funded 

9 under the grant may work for an employer at which 

10 a collective bargaining agreement is in effect cov11 ering the same or similar work, unless— 

12 (A) the consent of the union at such em13 ployer is obtained; and 

14 (B) negotiations have taken place between 

15 such union and the employer as to the terms 

16 and conditions of such employment. 

17 (3)(A)(i) An employer may not employ an indi18 vidual for a position funded under this Act, if— 

19 (I) employing such individual will re20 sult in the layoff or partial displacement 

21 (such as a reduction in hours, wages, or 

22 employee benefits) of an existing employee 

23 of the employer; or 

24 (II) such individual will perform the 

25 same or substantially similar work that 


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1 had previously been performed by an em2 ployee of the employer— 

3 (aa) has been laid off or partially 

4 displaced (as such term is described in 

5 subclause (I)); and 

6 (bb) has not been offered by the 

7 employer, to be restored to the posi8 tion the employee had immediately 

9 prior to being laid off or partially dis10 placed. 

11 (ii) For the purposes of this paragraph, a posi12 tion shall be considered to have been eliminated by 

13 an employer if the position has remained unfilled 

14 and the unit or organization has not sought to fill 

15 such position for at least a period of one month. 

16 (iii) An individual may not be hired for a posi17 tion funded under this Act in a manner that in18 fringes upon the promotional opportunities of an ex19 isting employee (as of the date of such hiring) of an 

20 employer receiving funds under this Act. 

21 (B) A community-based organization receiving 

22 funds under this Act may not use such funds to pro23 vide services or functions that are customarily pro24 vided by a unit of general local government where 


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1 such services or functions are provided by the orga2 nization. 

3 (4) An individual hired to fill a job funded 

4 under this Act shall register with and be certified by 

5 the appropriate State employment service as eligible 

6 for such employment and shall satisfy at least one 

7 of the following conditions as of the date the indi8 vidual is so hired: 

9 (A) The individual is receiving unemploy10 ment insurance benefits. 

11 (B) The individual is unemployed, a mem12 ber of a targeted group as defined by section 

13 51(d) of the Internal Revenue Code of 1986, 

14 and has been seeking employment, with the as15 sistance of the State employment service, for 

16 not less than 30 days prior to the date on which 

17 the individual is so hired. 

18 (C) The individual is unemployed and 

19 seeking employment, with the assistance of the 

20 State employment service, for not less than 60 

21 days prior to the date the individual is so hired. 

22 (D) The individual has been employed 

23 part-time while seeking full-time employment 

24 with the assistance of the State employment 


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1 service for not less than 13 weeks prior to the 

2 date the individual is so hired. 

3 (5) An individual employed in a job funded 

4 under this Act shall— 

5 (A) notwithstanding the individual’s em6 ployment in a job funded under this Act, be 

7 registered with the appropriate State employ8 ment service as available for and seeking work; 

9 (B) respond appropriately, as a person 

10 available for and seeking employment, to refer11 rals by the State employment service concerning 

12 available jobs; 

13 (C) apply for suitable jobs for which the 

14 individual has been referred by the State em15 ployment service; and 

16 (D) accept a suitable job if such job is of17 fered to the individual. 

18 For purposes of subparagraphs (C) and (D), the 

19 term ‘‘suitable job’’ means a job that a newly unem20 ployed individual receiving unemployment insurance 

21 benefits would be required to accept in order to 

22 avoid forfeiting the individual’s eligibility for contin23 ued receipt of unemployment insurance benefits 

24 under the laws of the State in which the individual 

25 is employed in a job funded under this Act. 


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1 (6) An individual employed in a job funded 

2 under this Act who terminates that employment in 

3 order to accept other employment, and who subse4 quently is terminated from that other employment 

5 without fault on the individual’s part, shall be eligi6 ble for immediate reemployment in a job funded 

7 under this Act. 

8 (7) In hiring individuals for positions funded 

9 under this Act, or using funds under this Act to con10 tinue to provide employee compensation for existing 

11 employees, an employer shall comply with all appli12 cable Federal, State, and local laws, personnel poli13 cies and regulations, and collective bargaining agree14 ments, as if such individual was hired, or such em15 ployee compensation were provided, without assist16 ance under this Act. 

17 (8) An individual hired for a position funded 

18 under this Act shall— 

19 (A) be considered an employee of the em20 ployer, by which such individual was hired; and 

21 (B) receive the same employee compensa22 tion, have the same rights and responsibilities 

23 and job classifications, and be subject to the 

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1 vidual were hired without assistance under this 

2 Act. 

3 (g) AWARD OF GRANTS.— 

4 (1) SELECTION CRITERIA.—In selecting a 

5 project to receive funding for employing the individ6 uals described in subsection (f)(4), a grant recipient 

7 shall consider— 

8 (A) the input of all participants in a pro9 posed project, including labor organizations, 

10 community organizations, and employers; 

11 (B) the needs of the community intended 

12 to benefit from such project; 

13 (C) the long-term goals and short-term ob14 jectives to address such needs; and 

15 (D) any recommendations for programs 

16 and activities developed to meet such needs. 

17 (2) PRIORITY GIVEN TO CERTAIN PROJECTS.— 

18 A grant recipient under this section shall give pri19 ority to projects that— 

20 (A) serve areas with the greatest level of 

21 economic need, determined for each such area 

22 by— 

23 (i) the unemployment rate; 

24 (ii) the rate of poverty; 


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1 (iii) the number of census tracts with 

2 concentrated poverty; 

3 (iv) the lowest median income; 

4 (v) the percentage of vacant and 

5 abandoned properties; 

6 (vi) the percentage of home fore7 closures; and 

8 (vii) the indicators of poor resident 

9 health, including high rates of chronic dis10 ease, infant mortality, and life expectancy; 

11 (B) integrate education and job skills 

12 training, including basic skills instruction and 

13 secondary education services; 

14 (C) coordinate to the maximum extent fea15 sible with pre-apprenticeship and apprenticeship 

16 programs; and 

17 (D) provide jobs in sectors where job 

18 growth is most likely, as determined by the Sec19 retary, and in which career advancement oppor20 tunities exist to maximize long-term, sustain21 able employment for individuals after employ22 ment funded under this Act ends. 

23 (h) ALLOCATION OF GRANTS.— 

24 (1) GRANTS FOR INDIAN TRIBES AND DEPOSITS

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1 cent of the funds available in the Trust Fund for ac2 tivities under this section for any fiscal year shall be 

3 reserved for grants to Indian tribes and for deposit 

4 into a discretionary fund established by the Sec5 retary for national demonstration projects and 

6 multi-jurisdictional projects. 

7 (2) GRANTS TO STATES.—Not more than 30 

8 percent of the funds available in the Trust Fund for 

9 activities under this section for any fiscal year shall 

10 be allocated to States to distribute to units of gen11 eral local government that do not qualify for funds 

12 under paragraph (3). 

13 (3) GRANTS TO UNITS OF GENERAL LOCAL

14 GOVERNMENT.—Grant funds that are not reserved 

15 under paragraphs (1) and (2) shall be allocated to 

16 metropolitan cities and urban counties using the for17 mula under section 106(b) of the Housing and Com18 munity Development Act of 1974 (42 U.S.C. 

19 5306(b)). 

20 (i) REPORTS.— 

21 (1) REPORTS BY GRANT RECIPIENTS.—Not 

22 later than 90 days after the last day of each fiscal 

23 year in which assistance under this section is fur24 nished, a recipient of a grant under this section shall 


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1 submit to the Secretary a report containing the fol2 lowing: 

3 (A) A description of the progress made in 

4 accomplishing the objectives of this chapter. 

5 (B) A summary of the use of the grant 

6 during the preceding fiscal year. 

7 (C) For units of general local government, 

8 a listing of each entity receiving funds and the 

9 amount of such grants, as well as a brief sum10 mary of the projects funded for each such unit, 

11 the extent of financial participation by other 

12 public or private entities, and the impact on 

13 employment and economic activity of such 

14 projects during the previous fiscal year. 

15 (D) For States, a listing of each unit of 

16 general local government receiving funds and 

17 the amount of such grants, as well as a brief 

18 summary of the projects funded for each such 

19 unit, the extent of financial participation by 

20 other public or private entities, and the impact 

21 on employment and economic activity of such 

22 projects during the previous fiscal year. 

23 (E) The amount of money received and ex24 pended during the fiscal year. 


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1 (F) The number of individuals assisted 

2 under the grant whose household income is low3 income, very low-income, or extremely low-in4 come (as such terms are used for purposes of 

5 the Housing Act of 1937 and the regulations 

6 thereunder (42 U.S.C. 1437 et seq.)). 

7 (G) The amount expended on administra8 tive costs during the fiscal year. 

9 (2) REPORT TO CONGRESS.—At least once 

10 every 6 months, the Secretary shall submit to Con11 gress a report on the use of grants awarded under 

12 this section and any progress in job creation. 

13 (j) ESTABLISHMENT OF ARBITRATION PROCE14 DURE.— 

15 (1) IN GENERAL.—Each grant recipient under 

16 this section shall agree to the arbitration procedure 

17 described in this subsection to resolve disputes de18 scribed in subsections (k) and (l). 

19 (2) WRITTEN GRIEVANCES.— 

20 (A) IN GENERAL.—If an employee (or an 

21 employee representative) wishes to use the arbi22 tration procedure described in this subsection, 

23 such party shall file a written grievance within 

24 the time period required under subsection (k) 

25 or (l), as applicable, simultaneously with the 


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1 chief executive officer of a unit or State in2 volved in the dispute and the Secretary. 

3 (B) IN-PERSON MEETING.—Not later than 

4 10 days after the date of the filing of the griev5 ance, the chief executive officer (or the designee 

6 of the chief executive officer) shall have an in7 person meeting with the party to resolve the 

8 grievance. 

9 (3) ARBITRATION.— 

10 (A) SUBMISSION.—If the grievance is not 

11 resolved within the time period described in 

12 paragraph (2)(B), a party, by written notice to 

13 the other party involved, may submit such 

14 grievance to binding arbitration before a quali15 fied arbitrator who is jointly selected and inde16 pendent of the parties. 

17 (B) APPOINTMENT BY SECRETARY.—If the 

18 parties cannot agree on an arbitrator within 5 

19 days of submitting the grievance to binding ar20 bitration under subparagraph (A), one of the 

21 parties may submit a request to the Secretary 

22 to appoint a qualified and independent arbi23 trator. The Secretary shall appoint a qualified 

24 and independent arbitrator within 15 days after 

25 receiving the request. 


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1 (C) HEARING.—Unless the parties mutu2 ally agree otherwise, the arbitrator shall con3 duct a hearing on the grievance and issue a de4 cision not later than 30 days after the date 

5 such arbitrator is selected or appointed. 

6 (D) COSTS.— 

7 (i) IN GENERAL.—Except as provided 

8 in clause (ii), the cost of an arbitration 

9 proceeding shall be divided evenly between 

10 the parties to the arbitration. 

11 (ii) EXCEPTION.—If a grievant pre12 vails under an arbitration proceeding, the 

13 recipient of a grant under this section shall 

14 pay the cost of such proceeding, including 

15 attorneys’ fees. 

16 (k) DISPUTES CONCERNING THE ALLOTMENT OF

17 FUNDS.—In a case where a unit of general local govern18 ment that is an entitlement community or a State has im19 properly requested funds for services or functions to be 

20 provided by a community-based organization that are cus21 tomarily provided by the unit or, in the case of a State, 

22 by a unit located in the nonentitlement area of the State 

23 where services or functions will be provided by the organi24 zation, an employee or employee representative of the unit 

25 or State may file a grievance under subsection (j) not later 


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1 than 15 days after public notice of an intent to submit 

2 an application under this section is published. Upon re3 ceiving a copy of the grievance, the Secretary shall with4 hold the funds subject to such grievance, unless and until 

5 the grievance is resolved under subsection (j), by the par6 ties or an arbitrator in favor of providing such funding. 

7 (l) ALL OTHER DISPUTES.— 

8 (1) IN GENERAL.—In the case of a dispute not 

9 covered under subsection (k) concerning compliance 

10 with the requirements of this section by a recipient 

11 of a grant under this section, an employee or em12 ployee representative of the unit or State may file a 

13 grievance under subsection (k) not later than 90 

14 days after the dispute arises. In such cases, an arbi15 trator may award such remedies as are necessary to 

16 make the grievant whole, including the reinstate17 ment of a displaced employee or the payment of 

18 back wages, and may submit recommendations to 

19 the Secretary to ensure further compliance with the 

20 requirements of this title, including recommenda21 tions to suspend or terminate funding, or to require 

22 the repayment of funds received under this title dur23 ing any period of noncompliance. 

24 (2) EXISTING GRIEVANCE PROCEDURES.—A 

25 party to a dispute described in paragraph (1) may 


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1 use the existing grievance procedure of a recipient of 

2 a grant under this section, or the arbitration proce3 dure described in this subsection, to resolve such dis4 pute. 

5 (m) PARTY DEFINED.—For purposes of subsections 

6 (j), (k), and (l), the term ‘‘party’’ means the employee and 

7 the recipient of a grant under this section, involved in a 

8 dispute described in subsection (k) or (l). 

9 (n) WHISTLEBLOWER HOTLINE; ENFORCEMENT BY

10 THE SECRETARY.— 

11 (1) WHISTLEBLOWER HOTLINE.—The Sec12 retary shall post on a publicly accessible Internet 

13 Web site of the Department of Labor the contact in14 formation for reporting noncompliance with this title 

15 by a State, unit of general local government, com16 munity-based organization, or individual receiving 

17 funding under this title. 

18 (2) ENFORCEMENT BY THE SECRETARY.— 

19 (A) IN GENERAL.—If the Secretary re20 ceives a complaint alleging noncompliance with 

21 this title, the Secretary may conduct an inves22 tigation and after notice and an opportunity for 

23 a hearing, may order such remedies as the Sec24 retary determines appropriate, including— 


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1 (i) withholding further funds under 

2 this title to a noncompliant entity; 

3 (ii) requiring the entity to make an 

4 injured party whole; or 

5 (iii) requiring the entity to repay to 

6 the Secretary any funds received under 

7 this title during any period of noncompli8 ance. 

9 (B) RECOMMENDATION BY AN ARBI10 TRATOR.—A remedy described in subparagraph 

11 (A) may also be ordered by the Secretary upon 

12 recommendation by an arbitrator appointed or 

13 selected under this section. 

14 SEC. 6. NATIONAL EMPLOYMENT CONFERENCE. 

15 (a) IN GENERAL.—The Secretary shall convene a na16 tional employment conference not later than 1 year after 

17 the date of enactment of this Act, to bring together leaders 

18 of small, medium, and large businesses, labor, govern19 ment, and all other interested parties. 

20 (b) SUBJECT.—The subject of the conference shall be 

21 employment, with particular attention to structural unem22 ployment and the plight of disadvantaged youth. The con23 ference shall also focus on issues such as adequate and 

24 effective incentives for employers to hire the long-term un25 employed. 


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1 SEC. 7. INCLUSION OF MINORITY-SERVING, COMMUNITY2 BASED ORGANIZATIONS IN WIA STATE AND 

3 LOCAL WORKFORCE INVESTMENT BOARDS. 

4 (a) STATE BOARDS.—Section 111(b)(1)(C)(v) of the 

5 Workforce Investment Act of 1998 (29 U.S.C. 

6 2821(b)(1)(C)(v)) is amended by inserting before the 

7 semicolon ‘‘(including not less than 25 percent of the chief 

8 executive officers of minority-serving, community-based 

9 organizations)’’. 

10 (b) LOCAL BOARDS.—Section 117(b)(2)(A)(iv) of 

11 such Act (29 U.S.C. 2832(b)(2)(A)(iv)) is amended by in12 serting ‘‘, and not less than 25 percent of the chief execu13 tive officers of minority-serving, community-based organi14 zations’’ after ‘‘present’’. 

15 SEC. 8. TAX ON SECURITIES TRANSACTIONS. 

16 (a) IN GENERAL.—Chapter 36 of the Internal Rev17 enue Code of 1986 is amended by inserting after sub18 chapter B the following new subchapter: 

19 ‘‘Subchapter C—Tax on Securities 

20 Transactions 

‘‘Sec. 4475. Tax on securities transactions. 

21 ‘‘SEC. 4475. TAX ON SECURITIES TRANSACTIONS. 

22 ‘‘(a) IMPOSITION OF TAX.— 

23 ‘‘(1) STOCKS.—There is hereby imposed a tax 

24 on each covered transaction in a stock contract of 


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1 0.25 percent of the value of the instruments involved 

2 in such transaction. 

3 ‘‘(2) FUTURES.—There is hereby imposed a tax 

4 on each covered transaction in a futures contract of 

5 0.02 percent of the value of the instruments involved 

6 in such transaction. 

7 ‘‘(3) SWAPS.—There is hereby imposed a tax on 

8 each covered transaction in a swaps contract of 0.02 

9 percent of the value of the instruments involved in 

10 such transaction. 

11 ‘‘(4) CREDIT DEFAULT SWAPS.—There is here12 by imposed a tax on each covered transaction in a 

13 credit default swaps contract of 0.02 percent of the 

14 value of the instruments involved in such trans15 action. 

16 ‘‘(5) OPTIONS.—There is hereby imposed a tax 

17 on each covered transaction in an options contract 

18 with respect to a transaction described in paragraph 

19 (1), (2), (3), or (4) of— 

20 ‘‘(A) the rate imposed with respect to such 

21 underlying transaction under paragraph (1), 

22 (2), (3), or (4) (as the case may be), multiplied 

23 by 

24 ‘‘(B) the premium paid on such option. 


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1 ‘‘(b) EXCEPTION FOR RETIREMENT ACCOUNTS, 

2 ETC.—No tax shall be imposed under subsection (a) with 

3 respect to any stock contract, futures contract, swaps con4 tract, credit default swap, or options contract which is 

5 held in any plan, account, or arrangement described in 

6 section 220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, 

7 or 530. 

8 ‘‘(c) EXCEPTION FOR INTERESTS IN MUTUAL

9 FUNDS.—No tax shall be imposed under subsection (a) 

10 with respect to the purchase or sale of any interest in a 

11 regulated investment company (as defined in section 851) 

12 or of any derivative of such an interest. 

13 ‘‘(d) BY WHOM PAID.— 

14 ‘‘(1) IN GENERAL.—The tax imposed by this 

15 section shall be paid by— 

16 ‘‘(A) in the case of a transaction which oc17 curs on a trading facility located in the United 

18 States, such trading facility, or 

19 ‘‘(B) in any other case, the purchaser with 

20 respect to the transaction. 

21 ‘‘(2) WITHHOLDING IF BUYER IS NOT A

22 UNITED STATES PERSON.—See section 1447 for 

23 withholding by seller if buyer is a foreign person. 

24 ‘‘(e) COVERED TRANSACTION.—The term ‘covered 

25 transaction’ means any purchase or sale if— 


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1 ‘‘(1) such purchase or sale occurs on a trading 

2 facility located in the United States, or 

3 ‘‘(2) the purchaser or seller is a United States 

4 person. 

5 ‘‘(f) ADMINISTRATION.—The Secretary shall carry 

6 out this section in consultation with the Securities and Ex7 change Commission and the Commodity Futures Trading 

8 Commission.’’. 

9 (b) WITHHOLDING.—Subchapter A of chapter 3 of 

10 such Code is amended by adding at the end the following 

11 new section: 

12 ‘‘SEC. 1447. WITHHOLDING ON SECURITIES TRANSACTIONS. 

13 ‘‘(a) IN GENERAL.—In the case of any outbound se14 curities transaction, the transferor shall deduct and with15 hold a tax equal to the tax imposed under section 4475 

16 with respect to such transaction. 

17 ‘‘(b) OUTBOUND SECURITIES TRANSACTION.—For 

18 purposes of this section, the term ‘outbound securities 

19 transaction’ means any covered transaction to which sec20 tion 4475(a) applies if— 

21 ‘‘(1) such transaction does not occur on a trad22 ing facility located in the United States, and 

23 ‘‘(2) the purchaser with respect to such trans24 action is not a United States person.’’. 

25 (c) CLERICAL AMENDMENTS.— 


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1 (1) The table of subchapters for chapter 36 of 

2 the Internal Revenue Code of 1986 is amended by 

3 inserting after the item relating to subchapter B the 

4 following new item: 

‘‘Subchapter C. Tax on Securities Transactions’’. 

5 (2) The table of sections for subchapter A of 

6 chapter 3 of such Code is amended by adding at the 

7 end the following new item: 

‘‘Sec. 1447. Withholding on securities transactions.’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to transactions occurring more 

10 than 180 days after the date of the enactment of this Act. 

Æ 


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