I 

113TH CONGRESS 

1ST SESSION H. R. 870 

To establish the National Full Employment Trust Fund to create employment 

opportunities for the unemployed. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 27, 2013 

Mr. CONYERS (for himself, Ms. CHU, Mr. CLAY, Mr. MCDERMOTT, Mr. 

DANNY K. DAVIS of Illinois, Mr. ELLISON, Ms. BROWN of Florida, Mr. 

CUMMINGS, Ms. EDWARDS, Ms. EDDIE BERNICE JOHNSON of Texas, Ms. 

LEE of California, Mr. GRIJALVA, Mr. HASTINGS of Florida, Mr. HOLT, 

Mr. COHEN, and Ms. FUDGE) 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 2013’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act the following definitions apply: 

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

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

5 of the Housing and Community Development Act 

6 (42 U.S.C. 5302(17)). 

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

8 the Secretary of Labor. 

9 (3) SMALL BUSINESS.—The term ‘‘small busi10 ness’’ has the meaning given the term ‘‘small busi11 ness concern’’ under section 3 of the Small Business 

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

13 (4) STATE.—The term ‘‘State’’ has the mean14 ing given such term in section 102(2) of the Hous15 ing and Community Development Act (42 U.S.C. 

16 5302(2)). 

17 (5) TRUST FUND.—The term ‘‘Trust Fund’’ re18 fers to the Full Employment Trust Fund established 

19 under section 3. 

20 (6) UNIT OF GENERAL LOCAL GOVERNMENT.— 

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

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

23 Housing and Community Development Act (42 

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

25 (7) URBAN COUNTY.—The term ‘‘urban coun26 ty’’ has the meaning given such term in section 


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1 102(6) of the Housing and Community Development 

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

3 SEC. 3. ESTABLISHMENT OF FULL EMPLOYMENT NATIONAL 

4 TRUST FUND. 

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

6 Full Employment National Trust Fund (in this Act re7 ferred to as the ‘‘Trust Fund’’) for the purposes of— 

8 (1) providing funding for the Employment Op9 portunity Grants established in section 4; and 

10 (2) issuing funds to the Secretary to fund the 

11 Workforce Investment Act of 1998 (29 U.S.C. 2801 

12 et seq.). 

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

14 availability of appropriations for this purpose, the Sec15 retary of the Treasury shall annually make available to 

16 the Secretary of Labor for deposit into the Trust Fund 

17 an amount equal to the amount collected for that year 

18 through the tax described in section 4475 of the Internal 

19 Revenue Code of 1986, as added by section 7. 

20 (c) SEPARATE TRUST FUND ACCOUNTS.—The Trust 

21 Fund shall consist of 2 separate accounts as follows: 

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

23 the funds made available for deposit under sub24 section (b) and shall be for the Employment Oppor25 tunity Grants established in section 4. 


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1 (2) The other account shall consist of 33 per2 cent of the funds made available for deposit under 

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

4 to fund programs under the Workforce Investment 

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

6 (d) WEB SITE.—The Secretary shall establish an 

7 Internet Web site to serve as an information clearinghouse 

8 for job training and employment opportunities funded by 

9 the Trust Fund. 

10 (e) TRAINING STIPEND.—The Secretary shall pro11 mulgate regulations to encourage entities that receive 

12 funds under programs under the Workforce Investment 

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

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

15 possible, establish a training stipend for individuals who 

16 participate in such programs. 

17 SEC. 4. EMPLOYMENT OPPORTUNITY GRANTS TO STATES, 

18 LOCAL GOVERNMENT, AND INDIAN TRIBES. 

19 (a) EMPLOYMENT GRANTS CONTINGENT ON LEVEL

20 OF UNEMPLOYMENT.—Subject to the availability of funds 

21 in the Trust Fund for activities under this section, if, at 

22 the beginning of a fiscal year, the economy is not at a 

23 level of full employment, as determined by the Chairman 

24 of the Federal Reserve Board, the Secretary shall make 

25 grants for such fiscal year, in amounts totaling 90 percent 


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1 of such funds available, to States, units of general local 

2 government, and Indian tribes to carry out activities in 

3 accordance with this section. 

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

5 be for creating employment opportunities for unemployed 

6 and underemployed residents of distressed communities in 

7 activities designed to address community needs and reduce 

8 disparities in health, housing, education, job readiness, 

9 and public infrastructure that have impeded these commu10 nities from realizing their full economic potential. 

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

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

13 (1) During the initial 9-month period in which 

14 grants are made under this section, each grant shall 

15 be used only to fund the following types of fast-track 

16 job placements: 

17 (A) The painting and repair of schools, 

18 community centers, and libraries. 

19 (B) The restoration and revitalization of 

20 abandoned and vacant properties to alleviate 

21 blight in distressed and foreclosure-affected 

22 areas of a unit of general local government. 

23 (C) The expansion of emergency food pro24 grams to reduce hunger and promote family 

25 stability. 


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1 (D) The augmentation of staffing in Head 

2 Start, child care, and other early childhood edu3 cation programs to promote school readiness 

4 and early literacy. 

5 (E) The renovation and enhancement of 

6 maintenance of parks, playgrounds, and other 

7 public spaces. 

8 (2) Following the 9-month period described in 

9 paragraph (1), a recipient of a grant may use the 

10 remaining amount of the grant to assist public enti11 ties, nonprofit community-based organizations, pub12 lic-private partnerships, or small businesses to create 

13 opportunities for employment in the following areas: 

14 (A) Construction, re-construction, rehabili15 tation, and site improvements of residences or 

16 public facilities, including improvements in the 

17 energy efficiency or environmental quality of 

18 such public facilities or residences. 

19 (B) Provision of human services, including 

20 child care services, health care services, edu21 cation, or recreational programs. 

22 (C) The remediation and demolition of va23 cant and abandoned properties to eliminate 

24 blight. 


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1 (D) Programs that provide disadvantaged 

2 youth with opportunities for employment, edu3 cation, leadership development, entrepreneurial 

4 skills development, and training. 

5 (3) Providing supplemental labor for existing 

6 federally or State-funded infrastructure projects. 

7 (4) Providing supplemental labor for existing 

8 federally or State-funded projects aimed at expand9 ing access to broadband or wireless Internet service. 

10 (d) CONSULTATION REQUIRED.—Each grant recipi11 ent shall consult with community leaders, including labor 

12 organizations, nonprofit community-based organizations, 

13 local government officials, and local residents to— 

14 (1) assess the needs of the community served 

15 by the grant recipient; 

16 (2) determine sectors of the local economy that 

17 are in need of employees; 

18 (3) make recommendations for new employment 

19 opportunities in the areas described in paragraph 

20 (3); and 

21 (4) assess the effectiveness of job placements 

22 made under paragraph (1). 

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

24 under this section, a grant recipient shall— 


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1 (1) agree to comply with the nondiscrimination 

2 policy set forth under section 109 of the Housing 

3 and Community Development Act of 1974 (42 

4 U.S.C. 5309); 

5 (2) allocate not less than 80 percent of the 

6 funding allocated to each project funded under the 

7 grant to wages, benefits, and support services, in8 cluding child care services, for individuals employed 

9 on such project; 

10 (3) ensure that employment on any project 

11 funded under the grant is carried out in accordance 

12 with subsection (c); 

13 (4) institute an outreach program with commu14 nity organizations and service providers in low-in15 come communities to provide information about 

16 placements funded under the grant to individuals 

17 suited to perform community infrastructure work; 

18 and 

19 (5) ensure that not less than 35 percent of indi20 viduals employed under the grant are individuals de21 scribed in paragraph (4)(B) of subsection (f). 

22 (f) EMPLOYMENT DESCRIBED.—Employment funded 

23 under this section shall meet the following specifications: 

24 (1) Any employer that employs an individual 

25 whose employment is funded under the grant shall— 


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1 (A) employ such individual for not less 

2 than 12 months; 

3 (B) employ such individual for not less 

4 than 30 hours per week; 

5 (C) comply with responsible contractor 

6 standards, as determined by the relevant official 

7 in the unit of local general government; 

8 (D) provide compensation to such indi9 vidual equal to that which is paid to employees 

10 who have been employed to perform similar 

11 work prior to the date such individual was 

12 hired; and 

13 (E) if such employment is in construction, 

14 provide compensation to any laborer or me15 chanic employed under the grant at rates not 

16 less than those prevailing on similar construc17 tion in the locality as determined by the Sec18 retary of Labor in accordance with subchapter 

19 IV of chapter 31 of title 40, United States 

20 Code. 

21 (2) No individual whose employment is funded 

22 under the grant may work for an employer at which 

23 a collective bargaining agreement is in effect cov24 ering the same or similar work, unless— 


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1 (A) the consent of the union at such em2 ployer is obtained; and 

3 (B) negotiations have taken place between 

4 such union and the employer as to the terms 

5 and conditions of such employment. 

6 (3) An individual whose employment is funded 

7 under this Act may not displace other employees 

8 whose employment is not funded under this Act. A 

9 grant recipient under this Act may not hire an em10 ployee or employees with funds under this Act for 

11 any employment which the grant recipient would 

12 otherwise hire an employee who has been furloughed. 

13 (4) An individual whose employment is funded 

14 under this Act shall be— 

15 (A) unemployed for not less than 26 weeks 

16 prior to the receipt of the grant, as verified by 

17 the State or local department of labor, depart18 ment of welfare, or similar office charged with 

19 maintaining records of unemployment; or 

20 (B) unemployed for not less than 30 days 

21 prior to the receipt of the grant and be a low22 income individual who is a member of a tar23 geted group (as defined by section 51(d) of the 

24 Internal Revenue Code of 1986) as verified by 

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1 ment of welfare, or similar office charged with 

2 maintaining records of unemployment. 

3 For purposes of subparagraph (B), the hiring date 

4 (as defined in section 51(d)(11) of such Code) shall 

5 be the hiring date by an employer who receives a 

6 grant pursuant to this section. 

7 (g) AWARD OF GRANTS.— 

8 (1) SELECTION CRITERIA.—In selecting a 

9 project to receive funding for employing the individ10 uals described in subsection (f)(4), a grant recipient 

11 shall consider— 

12 (A) the input of all participants in a pro13 posed project, including labor organizations, 

14 community organizations, and employers; 

15 (B) the needs of the community intended 

16 to benefit from such project; 

17 (C) the long-term goals and short-term ob18 jectives to address such needs; and 

19 (D) any recommendations for programs 

20 and activities developed to meet such needs. 

21 (2) PRIORITY GIVEN TO CERTAIN PROJECTS.— 

22 A grant recipient under this section shall give pri23 ority to projects that— 


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1 (A) serve areas with the greatest level of 

2 economic need, determined for each such area 

3 by— 

4 (i) the unemployment rate; 

5 (ii) the rate of poverty; 

6 (iii) the number of census tracts with 

7 concentrated poverty; 

8 (iv) the lowest median income; 

9 (v) the percentage of vacant and 

10 abandoned properties; 

11 (vi) the percentage of home fore12 closures; and 

13 (vii) the indicators of poor resident 

14 health, including high rates of chronic dis15 ease, infant mortality, and life expectancy; 

16 (B) integrate education and job skills 

17 training, including basic skills instruction and 

18 secondary education services; 

19 (C) coordinate to the maximum extent fea20 sible with pre-apprenticeship and apprenticeship 

21 programs; and 

22 (D) provide jobs in sectors where job 

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1 able employment for individuals after employ2 ment funded under this Act ends. 

3 (h) ALLOCATION OF GRANTS.— 

4 (1) GRANTS FOR INDIAN TRIBES AND DEPOSITS

5 INTO DISCRETIONARY FUND.—Not more than 5 per6 cent of the funds available in the Trust Fund for ac7 tivities under this section for any fiscal year shall be 

8 reserved for grants to Indian tribes and for deposit 

9 into a discretionary fund established by the Sec10 retary for national demonstration projects and 

11 multi-jurisdictional projects. 

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

13 percent of the funds available in the Trust Fund for 

14 activities under this section for any fiscal year shall 

15 be allocated to States to distribute to units of gen16 eral local government that do not qualify for funds 

17 under paragraph (3). 

18 (3) GRANTS TO UNITS OF GENERAL LOCAL

19 GOVERNMENT.—Grant funds that are not reserved 

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

21 metropolitan cities and urban counties using the for22 mula under section 106(b) of the Housing and Com23 munity Development Act of 1974 (42 U.S.C. 

24 5306(b)). 

25 (i) REPORTS.— 


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1 (1) REPORTS BY GRANT RECIPIENTS.—Not 

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

3 year in which assistance under this section is fur4 nished, a recipient of a grant under this section shall 

5 submit to the Secretary a report containing the fol6 lowing: 

7 (A) A description of the progress made in 

8 accomplishing the objectives of this chapter. 

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

10 during the preceding fiscal year. 

11 (C) For units of general local government, 

12 a listing of each entity receiving funds and the 

13 amount of such grants, as well as a brief sum14 mary of the projects funded for each such unit, 

15 the extent of financial participation by other 

16 public or private entities, and the impact on 

17 employment and economic activity of such 

18 projects during the previous fiscal year. 

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

20 general local government receiving funds and 

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

22 summary of the projects funded for each such 

23 unit, the extent of financial participation by 

24 other public or private entities, and the impact 


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1 on employment and economic activity of such 

2 projects during the previous fiscal year. 

3 (E) The amount of money received and ex4 pended during the fiscal year. 

5 (F) The number of individuals assisted 

6 under the grant whose household income is low7 income, very low-income, or extremely low-in8 come (as such terms are used for purposes of 

9 the Housing Act of 1937 and the regulations 

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

11 (G) The amount expended on administra12 tive costs during the fiscal year. 

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

14 every 6 months, the Secretary shall submit to Con15 gress a report on the use of grants awarded under 

16 this section and any progress in job creation. 

17 SEC. 5. NATIONAL EMPLOYMENT CONFERENCE. 

18 (a) IN GENERAL.—The Secretary shall convene a na19 tional employment conference not later than 1 year after 

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

21 of small, medium, and large businesses, labor, govern22 ment, and all other interested parties. 

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

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1 ference shall also focus on issues such as adequate and 

2 effective incentives for employers to hire the long-term un3 employed. 

4 SEC. 6. INCLUSION OF MINORITY-SERVING, COMMUNITY5 BASED ORGANIZATIONS IN WIA STATE AND 

6 LOCAL WORKFORCE INVESTMENT BOARDS. 

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

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

9 2821(b)(1)(C)(v)) is amended by inserting before the 

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

11 executive officers of minority-serving, community-based 

12 organizations)’’. 

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

14 such Act (29 U.S.C. 2832(b)(2)(A)(iv)) is amended by in15 serting ‘‘, and not less than 25 percent of the chief execu16 tive officers of minority-serving, community-based organi17 zations’’ after ‘‘present’’. 

18 SEC. 7. TAX ON SECURITIES TRANSACTIONS. 

19 (a) IN GENERAL.—Chapter 36 of the Internal Rev20 enue Code of 1986 is amended by inserting after sub21 chapter B the following new subchapter: 

22 ‘‘Subchapter C—Tax on Securities 

23 Transactions 

‘‘Sec. 4475. Tax on securities transactions. 


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

2 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 

3 a tax on each covered securities transaction an amount 

4 equal to 0.25 percent of the value of the security involved 

5 in such transaction. 

6 ‘‘(b) BY WHOM PAID.—The tax imposed by this sec7 tion shall be paid by the trading facility on which the 

8 transaction occurs. 

9 ‘‘(c) COVERED SECURITIES TRANSACTION.—The 

10 term ‘covered securities transaction’ means— 

11 ‘‘(1) any transaction to which subsection (b), 

12 (c), or (d) of section 31 of the Securities Exchange 

13 Act of 1934 applies, and 

14 ‘‘(2) any transaction subject to the exclusive ju15 risdiction of the Commodity Futures Trading Com16 mission. 

17 ‘‘(d) ADMINISTRATION.—The Secretary shall carry 

18 out this section in consultation with the Securities and Ex19 change Commission and the Commodity Futures Trading 

20 Commission.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sub22 chapters for chapter 36 of such Code is amended by in23 serting after the item relating to subchapter B the fol24 lowing new item: 

‘‘SUBCHAPTER C. TAX ON SECURITIES TRANSACTIONS.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this subsection shall apply to sales occurring more than 

3 30 days after the date of the enactment of this Act. 

Æ 


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