[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2800 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2800

To increase the incentives for employers to hire qualified ex-felons by 
  enhancing the effectiveness of the work opportunity tax credit, to 
reduce the backlog of applications pending certification under the work 
  opportunity tax credit program, to enhance the effectiveness of the 
     Federal bonding program, and to authorize a pilot program for 
                  employment-focused reentry projects.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 2, 2008

  Mr. Specter introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To increase the incentives for employers to hire qualified ex-felons by 
  enhancing the effectiveness of the work opportunity tax credit, to 
reduce the backlog of applications pending certification under the work 
  opportunity tax credit program, to enhance the effectiveness of the 
     Federal bonding program, and to authorize a pilot program for 
                  employment-focused reentry projects.

    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 ``Employment Access for Recidivism 
Reduction Nationwide'' or the ``EARN Act''.

SEC. 2. ENHANCING INCENTIVES UNDER THE WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--The Secretary of Labor shall carry out activities 
to--
            (1) reduce and eliminate any backlogs of more than 6 months 
        for employers who apply for certifications from State workforce 
        agencies for purposes of the work opportunity credit program 
        under section 51 of the Internal Revenue Code of 1986;
            (2) increase the awareness of employers of the Federal tax 
        credits available for employers who employ individuals who 
        otherwise face barriers to employment, such as recipients of 
        long-term family assistance and ex-felons; and
            (3) utilize the Internet to process pre-screening notices 
        and certification requests for the work opportunity credit 
        determined under section 51 of the Internal Revenue Code of 
        1986.
    (b) Report.--Not later than 90 days after the date of enactment of 
this Act, the Secretary of Labor shall submit to the appropriate 
committees of Congress, a plan that outlines the steps that will be 
taken by the Department of Labor to carry out activities this section 
to achieve the purposes of this Act.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $5,000,000 for each of fiscal 
years 2009 through 2014.

SEC. 3. IMPROVING THE FEDERAL BONDING PROGRAM.

    (a) In General.--The Secretary of Labor shall carry out activities 
to increase by 25 percent the number of fidelity bonds purchased and 
issued by States through the Federal Bonding Program.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $1,000,000 for each of fiscal 
years 2009 through 2014.

SEC. 4. INCREASED WORK OPPORTUNITY CREDIT FOR QUALIFIED EX-OFFENDERS 
              HIRED UNDER CERTIFIED PROGRAMS.

    (a) In General.--Section 51 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(l) Increased Credit for Qualified Ex-Felons Hired Under Certain 
Programs.--
            ``(1) In general.--In the case of a taxpayer who employs a 
        qualified ex-felon under a program described in paragraph (3), 
        the credit allowed under this section for any taxable year 
        shall be increased by an amount equal to the amount which bears 
        the same ratio to $10,000 as--
                    ``(A) the number of days during the taxable year 
                during which such qualified ex-felon was employed by 
                the taxpayer, bears to
                    ``(B) the number of days in the taxpayer's taxable 
                year.
            ``(2) Limitation.--
                    ``(A) In general.--The aggregate credits allowed 
                under this subsection for all taxpayers shall not 
                exceed $10,000,000.
                    ``(B) Allocation of credits.--The Secretary, in 
                consultation with the Secretary of Labor and the 
                Attorney General, shall allocate the credit limitation 
                under subparagraph (A) among taxpayers with programs 
                described in paragraph (3).
            ``(3) Qualified ex-felon program.--A program is described 
        in this paragraph if such program--
                    ``(A) is certified by the Secretary, in 
                consultation with the Secretary of Labor and the 
                Attorney general, and
                    ``(B) provides that any qualified ex-felon hired 
                under the program--
                            ``(i) is paid wages by the taxpayer in an 
                        amount equal to or greater than 150 percent of 
                        the Federal minimum wage in effect under the 
                        Fair Labor Standards Act of 1938, and
                            ``(ii) is provided health care benefits by 
                        the taxpayer which meet such standards as 
                        promulgated by the Secretary, in consultation 
                        with the Secretary of Labor and the Attorney 
                        General.
            ``(4) Certain individuals ineligible.--Rules similar to the 
        rules under paragraphs (1), (2), and (3)(B) of subsection (i) 
        shall apply for purposes of this subsection.
            ``(5) Termination.--This subsection shall not apply with 
        respect to any taxable year beginning after the date that is 2 
        years after the date of the enactment of this subsection.''.
    (b) Study and Report.--
            (1) In general.--Not later than 3 years after the date of 
        the enactment of this Act, the Secretary of the Treasury, in 
        consultation with the Secretary of Labor and the Attorney 
        General, shall submit to Congress a report on the credits 
        allowed under section 51(l) of the Internal Revenue Code of 
        1986 (as added by this section).
            (2) Matters reported.--The report under paragraph (1) shall 
        include--
                    (A) the number of taxpayers who applied for 
                certification of a program described in section 
                51(l)(3) of the Internal Revenue Code of 1986;
                    (B) the number of taxpayer who received 
                certification for such a program;
                    (C) the number of taxpayers who claimed a credit 
                under section 51(l) of such Code;
                    (D) the total amount of credits allowed under such 
                section;
                    (E) the number of qualified ex-offenders who 
                participated in such a program and who continued to be 
                employed under such a program--
                            (i) 6 months after the date of hire under 
                        such program;
                            (ii) 12 months after the date of hire under 
                        such program;
                            (iii) 18 months after the date of hire 
                        under such program; and
                            (iv) 24 months after the date of hire under 
                        such program; and
                    (F) the total number of qualified ex-offenders who 
                participated in such a program and who were 
                incarcerated at any time within the 36-month period 
                beginning with the date of hire under the program.
    (c) Effective Date.--The amendment made in subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>