[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 143 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 143

    To provide job creation and assistance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2005

  Mr. McHugh introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committees on Ways and Means, Judiciary, and Financial Services, 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 provide job creation and assistance, and for other purposes.

    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 may be cited as the ``Rural America Job Assistance and 
Creation Act''.

SEC. 2. GRANTS FOR REGIONAL SKILLS ALLIANCE SKILL DEVELOPMENT.

    (a) Authorization.--
            (1) In general.--The Secretary of Labor, in consultation 
        with the Secretary of Commerce, shall award grants to eligible 
        entities described in subsection (b) to assist such entities to 
        improve the job skills necessary for employment in specific 
        industries.
            (2) Eligible entities described.--
                    (A) In general.--An eligible entity described in 
                this subsection is a consortium that--
                            (i) shall consist of representatives from 
                        not less than 5 businesses, or a lesser number 
                        of businesses if such lesser number of 
                        businesses employs at least 30 percent of the 
                        employees in the industry involved in the 
                        region (or a nonprofit organization that 
                        represents such businesses);
                            (ii) may consist of representatives from--
                                    (I) labor organizations;
                                    (II) State and local government; 
                                and
                                    (III) educational institutions;
                            (iii) is established to serve one or more 
                        particular industries; and
                            (iv) is established to serve a particular 
                        geographic region.
                    (B) Majority of representatives.--A majority of the 
                representatives comprising the consortium shall be 
                representatives described in subparagraph (A)(i).
            (3) Priority for small businesses.--In providing grants 
        under paragraph (1), the Secretary of Labor shall give priority 
        to an eligible entity if a majority of representatives forming 
        the entity represent small-business concerns (as defined in 
        section 3(a) of the Small Business Act (15 U.S.C. 632(a))).
            (4) Maximum amount of grant.--The amount of a grant awarded 
        to an eligible entity under paragraph (1) may not exceed 
        $1,000,000 for any fiscal year.
    (b) Use of Amounts.--
            (1) In general.--The Secretary of Labor may not award a 
        grant under subsection (a) to an eligible entity unless such 
        entity agrees to use amounts received from such grant to 
        improve the job skills necessary for employment by businesses 
        in the industry with respect to which such entity was 
        established.
            (2) Conduct of program.--
                    (A) In general.--In carrying out the program 
                described in paragraph (1), the eligible entity may 
                provide for--
                            (i) an assessment of training and job skill 
                        needs for the industry;
                            (ii) the development of a sequence of skill 
                        standards that are benchmarked to advanced 
                        industry practices;
                            (iii) the development of curriculum and 
                        training methods, including, where appropriate, 
                        e-learning or technology-based training;
                            (iv) the purchase, lease, or receipt of 
                        donations of training equipment;
                            (v) the identification of training 
                        providers and the development of partnerships 
                        between the industry and educational 
                        institutions, including community colleges;
                            (vi) the development of apprenticeship 
                        programs;
                            (vii) the development of training programs 
                        for workers, including dislocated workers;
                            (viii) the development of training plans 
                        for businesses; and
                            (ix) the development of the membership of 
                        the entity.
                    (B) Additional requirement.--In carrying out the 
                program described in paragraph (1), the eligible entity 
                shall provide for the development and tracking of 
                performance outcome measures for the program and the 
                training providers involved in the program.
            (3) Administrative costs.--The eligible entity may use not 
        more than 10 percent of the amount of a grant to pay for 
        administrative costs associated with the program described in 
        paragraph (1).
    (c) Requirement of Matching Funds.--
            (1) In general.--The Secretary of Labor may not award a 
        grant under subsection (a) to an eligible entity unless such 
        entity agrees that the entity will make available non-Federal 
        contributions toward the costs of carrying out activities under 
        the grant in an amount that is not less than $2 for each $1 of 
        Federal funds provided under the grant, of which--
                    (A) $1 shall be provided by the businesses 
                participating in the entity; and
                    (B) $1 shall be provided by the State or local 
                government involved.
            (2) Other contributions.--
                    (A) Equipment.--Equipment donations to facilities 
                that are not owned or operated by the members of the 
                eligible entity involved and that are shared by such 
                members may be included in determining compliance with 
                paragraph (1).
                    (B) Limitation.--An eligible entity may not include 
                in-kind contributions in complying with the requirement 
                of paragraph (1). The Secretary of Labor may consider 
                such donations in ranking applications.
    (d) Limit on Administrative Expenses.--The Secretary of Labor may 
use not more than 5 percent of the amounts made available to carry out 
this section to pay the Federal administrative costs associated with 
awarding grants under this section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2006, 2007, and 2008, and such sums as are necessary for each 
fiscal year thereafter.

SEC. 3. GRANTS FOR REGIONAL SKILLS ALLIANCE PLANNING.

    (a) Authorization.--
            (1) In general.--The Secretary of Labor, in consultation 
        with the Secretary of Commerce, shall award grants to States to 
        enable such States to assist businesses, organizations, and 
        agencies described in section 2(a)(2) in conducting planning to 
        form consortia described in such section.
            (2) Maximum amount of grant.--The amount of a grant awarded 
        to a State under paragraph (1) may not exceed $500,000 for any 
        fiscal year.
    (b) Application.--The Secretary of Labor may not award a grant 
under subsection (a) to a State unless such State submits to the 
Secretary an application at such time, in such manner, and containing 
such information as the Secretary may reasonably require.
    (c) Requirement of Matching Funds.--The Secretary of Labor may not 
award a grant under subsection (a) to a State unless such State agrees 
that it will make available non-Federal contributions toward the costs 
of carrying out activities under this section in an amount that is not 
less than $1 for each $1 of Federal funds provided under the grant.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for fiscal year 2006.

SEC. 4. GRANTS FOR SUPPORT OF BUSINESS INCUBATOR ACTIVITIES.

    (a) Purpose.--It is the purpose of this section to encourage 
entrepreneurial creativity and risk taking through the support of the 
furnishing of business incubator services for newly established small 
businesses and medium-sized businesses.
    (b) Grant Program.--To achieve the purpose of this section, the 
Secretary of Commerce shall carry out a program to provide, through 
grants, financial assistance for the establishment and support of 
entities that provide business incubator services in support of the 
initiation and initial sustainment of business activities by newly 
established small businesses and medium-sized businesses.
    (c) Awards of Grants.--
            (1) Eligibility requirements.--The Secretary shall 
        prescribe the eligibility requirements for the awarding of 
        grants under this section.
            (2) Competitive selection.--The Secretary shall use a 
        competitive process for the awarding of grants under this 
        section and, under that process, select recipients of the 
        grants on the basis of merit, with priority given to 
        underserved rural and urban communities.
            (3) Applications for grants.--The Secretary shall prescribe 
        the form and content of applications required for grants under 
        this section.
    (d) Additional Administrative Authorities.--
            (1) Cost-sharing.--The Secretary may require the recipient 
        of a grant under this section to defray a specific level of its 
        operating expenses for business incubator services out of funds 
        available from sources other than the Federal Government.
            (2) Additional terms and conditions.--The Secretary, in 
        awarding a grant, may impose any other terms and conditions for 
        the use of the proceeds of the grant that the Secretary 
        determines appropriate for carrying out the purpose of this 
        section and to protect the interests of the United States, 
        including the requirement that entities providing business 
        incubator services that receive a grant under this section 
        develop a plan for ultimately becoming self-sufficient.
    (e) Definitions.--In this section:
            (1) Business incubator services.--The term ``business 
        incubator services'' includes professional and technical 
        services necessary for the initiation and initial sustainment 
        of operations of a newly established business, including such 
        services as the following:
                    (A) Legal services.--Legal services, including aid 
                in preparing corporate charters, partnership 
                agreements, and basic contracts.
                    (B) Intellectual property services.--Services in 
                support of the protection of intellectual property 
                through patents, trademarks, or otherwise.
                    (C) Technology services.--Services in support of 
                the acquisition and use of advanced technology, 
                including the use of Internet services and web-based 
                services.
                    (D) Planning.--Advice on--
                            (i) strategic planning; and
                            (ii) marketing, including advertising.
            (2) Small business and medium-sized business.--
                    (A) Secretary to prescribe.--The Secretary shall 
                prescribe the definitions of the terms ``small 
                business'' and ``medium-sized business'' for the 
                purpose of this section.
                    (B) Small business standards.--In defining the term 
                ``small business'' for the purpose of this section, the 
                Secretary shall apply the standards applicable for the 
                definition of the term ``small-business concern'' under 
                section 3 of the Small Business Act (15 U.S.C. 632).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
    (f) Regulations.--The Secretary shall prescribe regulations for the 
grant program administered under this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated for the Department of Commerce to carry out this section 
$50,000,000 for fiscal year 2006, and $200,000,000 for each fiscal year 
thereafter.

SEC. 5. NOTIFICATION OF FEDERAL AND STATE ELECTED OFFICIALS PRIOR TO 
              DISLOCATION OF WORKERS.

    Section 3(a)(2) of the Worker Adjustment and Retraining 
Notification Act (29 U.S.C. 2102(a)(2)) is amended by inserting 
``Federal, State, and'' after ``the unit of''.

SEC. 6. SUBMISSION OF H-1B LABOR CONDITION APPLICATION AT SAME TIME AS 
              CLASSIFICATION PETITION.

    Section 212(n)(1) of the Immigration and Nationality Act (8 U.S.C. 
1182(n)(1)) is amended by adding at the end the following: ``The 
application under this paragraph shall be submitted by an employer at 
the same time as the classification petition is filed under section 214 
relating to the H-1B nonimmigrants who are the subject of the 
application.''.

SEC. 7. EXCLUSION FROM INCOME OF SEVERANCE PAYMENT AMOUNTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 139 the 
following new section:

``SEC. 139A. SEVERANCE PAYMENTS.

    ``(a) In General.--In the case of an individual, gross income shall 
not include any qualified severance payment.
    ``(b) Limitation.--The amount to which the exclusion under 
subsection (a) applies shall not exceed $25,000 with respect to each 
separation from employment described in subsection (c)(1)(B).
    ``(c) Qualified Severance Payment.--For purposes of this section--
            ``(1) In general.--The term `qualified severance payment' 
        means any payment received by an individual if--
                    ``(A) such payment was paid by such individual`s 
                employer on account of such individual's separation 
                from employment, and
                    ``(B) such separation was in connection with a 
                reduction in the work force of the employer.
            ``(2) Limitation.--Such term shall not include any payment 
        received by an individual if the aggregate payments received 
        with respect to the separation from employment exceed 
        $150,000.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139 the following new items:

``139A. Severance payments.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 8. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 (relating to members of targeted groups) is amended by striking 
``or'' at the end of subparagraph (G), by striking the period at the 
end of subparagraph (H) and inserting ``, or'', and by adding at the 
end the following:
                    ``(I) a qualified small business employee.''.
    (b) Qualified Small Business Employee.--Section 51(d) of the 
Internal Revenue Code of 1986 is amended by redesignating paragraphs 
(10) through (12) as paragraphs (11) through (13), respectively, and by 
inserting after paragraph (9) the following:
            ``(10) Qualified small business employee.--
                    ``(A) In general.--The term `qualified small 
                business employee' means any individual--
                            ``(i) hired by a qualified small business 
                        located in a development zone, or
                            ``(ii) hired by a qualified small business 
                        and who is certified by the designated local 
                        agency as residing in such a development zone.
                    ``(B) Qualified small business.--The term 
                `qualified small business' has the meaning given the 
                term `small employer' by section 4980D(d)(2).
                    ``(C) Development zone.--For purposes of this 
                section--
                            ``(i) In general.--The term `development 
                        zone' means any area--
                                    ``(I) which is nominated under the 
                                procedures defined in sections 
                                1400E(a)(1)(A) and 1400E(a)(4) for 
                                renewal communities;
                                    ``(II) which the Secretary of 
                                Housing and Urban Development 
                                designates as a development zone, after 
                                consultation with the Secretary of 
                                Commerce;
                                    ``(III) which has a population of 
                                not less than 5,000 and not more than 
                                150,000;
                                    ``(IV) which has a poverty rate not 
                                less than 20 percent (within the 
                                meaning of section 1400E(c)(3)(C));
                                    ``(V) which has an average annual 
                                rate of job growth of less than 2 
                                percent during any 3 years of the 
                                preceding 5-year period; and
                                    ``(VI) which, during the period 
                                beginning January 1, 1990 and ending 
                                with the date of the enactment of this 
                                section, has a net out-migration of 
                                inhabitants, or other population loss, 
                                from the area of at least 2 percent of 
                                the population of the area during such 
                                period.
                            ``(ii) Number of designations.--The 
                        Secretary of Housing and Urban Development may 
                        not designate more than 100 development zones.
                    ``(D) Special rules for determining amount of 
                credit.--For purposes of applying this subpart to wages 
                paid or incurred to any qualified small business 
                employee--
                            ``(i) subsection (a) shall be applied by 
                        substituting `20 percent of the qualified 
                        first, second, third, fourth, or fifth year 
                        wages' for `40 percent of the qualified first 
                        year wages', and
                            ``(ii) in lieu of paragraphs (2) and (3) of 
                        subsection (b), the following definitions and 
                        special rule shall apply:
                                    ``(I) Qualified first-year wages.--
                                The term `qualified first-year wages' 
                                means, with respect to any individual, 
                                qualified wages attributable to service 
                                rendered during the 1-year period 
                                beginning with the day the individual 
                                begins work for the employer.
                                    ``(II) Qualified second-year 
                                wages.--The term `qualified second-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (I).
                                    ``(III) Qualified third-year 
                                wages.--The term `qualified third-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (II).
                                    ``(IV) Qualified fourth-year 
                                wages.--The term `qualified fourth-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (III).
                                    ``(V) Qualified fifth-year wages.--
                                The term `qualified fifth-year wages' 
                                means, with respect to any individual, 
                                qualified wages attributable to service 
                                rendered during the 1-year period 
                                beginning on the day after the last day 
                                of the 1-year period with respect to 
                                such individual determined under 
                                subclause (IV).
                                    ``(VI) Only first $15,000 of wages 
                                per year taken into account.--The 
                                amount of the qualified first, second, 
                                third, fourth, and fifth year wages 
                                which may be taken into account with 
                                respect to any individual shall not 
                                exceed $15,000 per year.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
enactment of this Act.
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