[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1000 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 1000

To establish a National Full Employment Trust Fund to create employment 
       opportunities for the unemployed, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 6, 2019

Ms. Wilson of Florida introduced the following bill; which was referred 
    to the Committee on Education and Labor, 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 a National Full Employment Trust Fund to create employment 
       opportunities for the unemployed, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Humphrey-Hawkins 
21st Century Full Employment and Training Act of 2019'' or the ``Jobs 
for All Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
     TITLE I--ESTABLISHMENT OF NATIONAL FULL EMPLOYMENT TRUST FUND

Sec. 101. National Full Employment Trust Fund.
Sec. 102. Source of funds.
Sec. 103. Loans from the Federal Reserve System.
Sec. 104. Trust Fund corpus reserved.
                    TITLE II--PROGRAM ADMINISTRATION

Sec. 201. In general.
Sec. 202. Grant management.
Sec. 203. Office of Technical Assistance.
Sec. 204. Office of Educational Support.
Sec. 205. Office of Assisted Placement.
Sec. 206. Office of Dispute Resolution.
Sec. 207. Office of Statistics and Research.
Sec. 208. National Employment Conference.
Sec. 209. Program website.
Sec. 210. Staffing administrative functions.
Sec. 211. Workforce Innovation and Opportunity Act.
                TITLE III--EMPLOYMENT OPPORTUNITY GRANTS

Sec. 301. Grants.
Sec. 302. Eligible entities.
Sec. 303. Use of funds.
Sec. 304. Grant conditions.
Sec. 305. Program employment described.
Sec. 306. Eligibility for program employment.
Sec. 307. Compensation.
Sec. 308. Assisted placement.
Sec. 309. Priority given to certain projects.
Sec. 310. Startup period.
Sec. 311. Secretary's authority to administer projects directly.
Sec. 312. Reports.
Sec. 313. Dispute resolution.
Sec. 314. Tax on securities transactions.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) The Federal Government has established the achievement 
        of full employment as a national goal in the Employment Act of 
        1946 and the Full Employment and Balanced Growth Act of 1978.
            (2) Consistent with this goal and pursuant to these Acts, 
        the Congress has declared it to be the continuing policy and 
        responsibility of the Federal Government to use all practicable 
        means to create and maintain conditions which promote useful 
        employment opportunities for all who seek them, including the 
        self-employed.
            (3) Consistent with this goal and pursuant to these Acts, 
        the Congress has also declared and established as a national 
        goal the fulfillment of the right to full opportunities for 
        useful paid employment at fair rates of compensation of all 
        individuals able, willing, and seeking to work.
            (4) The United States also has a duty under Articles 55 and 
        56 of the United Nations Charter to promote ``full employment'' 
        and the ``universal respect for, and observance of, human 
        rights and fundamental freedoms for all without distinction as 
        to race, sex, language, or religion''.
            (5) The human rights the United States has a duty to 
        promote pursuant to this obligation are set forth in the 
        Universal Declaration of Human Rights.
            (6) Article 23 of the Universal Declaration of Human Rights 
        states that ``Everyone has the right to work'' and to ``just 
        and favorable remuneration'' that insures for his or her family 
        ``an existence worthy of human dignity, and supplemented, if 
        necessary, by other means of social protection''.
            (7) Consistent with the purpose and intent of the 
        Employment Act of 1946, the Full Employment and Balanced Growth 
        Act of 1978, Articles 55 and 56 of the United Nations Charter, 
        and Article 23 of the Universal Declaration of Human Rights, 
        the Congress recognizes and declares that the meaning of full 
        employment under both United States and international law is 
        synonymous with the realization of the right to work.
            (8) Consistent with this understanding of the meaning of 
        full employment, the stated policy of the United States with 
        respect to the achievement of full employment and the 
        realization of the right to work, and the obligations of the 
        United States under international law, the Full Employment and 
        Balanced Growth Act of 1978 established an interim 5-year 
        target of 3 percent unemployment for individuals 20 years of 
        age and older, and 4 percent for individuals age 16 and over 
        within 5 years, with full employment to be achieved ``as soon 
        as practicable'' thereafter.
            (9) Notwithstanding the targets set forth in the Full 
        Employment and Balanced Growth Act of 1978, the United States 
        continues to suffer substantial unemployment and 
        underemployment across all phases of the business cycle, 
        including periods when the Board of Governors of the Federal 
        Reserve System is pursuing policies that may be useful in 
        controlling inflation but whose necessary consequence is the 
        continuation of a level of unemployment and underemployment 
        that is inconsistent with the achievement of full employment 
        and the realization of the right to work.
            (10) The Federal Government's failure to develop and 
        implement policies capable of reconciling the need to control 
        inflation with its obligation to achieve full employment and 
        secure the right to work imposes numerous economic and social 
        costs on the Nation, the following among them:
                    (A) The Nation is deprived of the full supply of 
                goods and services and related increases in economic 
                well-being that would occur under conditions of genuine 
                full employment.
                    (B) The Nation's depressed output of goods and 
                services, especially in the public sector, is 
                insufficient to meet pressing national needs for 
                infrastructure investment and maintenance, public 
                transportation, clean energy production, low and 
                moderate income housing, education, health care, child 
                and elder care, and many other public goods and human 
                services.
                    (C) Unemployment and underemployment expose many 
                workers and families to significant, social, 
                psychological, and physiological costs, including 
                disruption of family life, the loss of individual 
                dignity and self-respect, and the aggravation of 
                physical and mental illnesses.
                    (D) Persisting unemployment and underemployment 
                have devastating financial consequences for its 
                victims, resulting in the loss of income and spending 
                power for families, and interfering with their ability 
                to save and accumulate assets for a secure family life 
                and retirement.
                    (E) Because disadvantaged population groups suffer 
                the burdens and harmful consequences of unemployment 
                with greater frequency and at higher levels than 
                nondisadvantaged population groups, unemployment 
                presents a virtually insurmountable barrier to the 
                achievement of equal opportunity for all Americans.
                    (F) Exceptionally high levels of unemployment among 
                the Nation's youth are particularly harmful because of 
                their long-term negative effects.
                    (G) High levels of unemployment and inadequate 
                consumer demand also contribute to poor conditions for 
                retail businesses, manufacturers, and many other firms 
                to grow and prosper.
                    (H) In the real estate sector, the Congress finds 
                that high levels of unemployment contribute to 
                foreclosures, evictions, and commercial vacancies, 
                thereby undermining the quality of neighborhood and 
                community life, and hampering prospects for the 
                economic development of all the Nation's neighborhoods 
                and communities.
            (11) Since the historic promise of the Employment Act of 
        1946 and the Full Employment and Balanced Growth Act of 1978 
        has not been realized, the Congress declares and reaffirms the 
        Federal Government's obligation to insure the availability of 
        decent jobs for all at living wages.
            (12) The Congress further declares and reaffirms that the 
        elimination of job disparities among groups of workers who 
        experience chronically higher rates of unemployment and 
        underemployment is an essential component of the Federal 
        Government's commitment to the achievement of full employment 
        and the realization of the right to work.
            (13) The Congress also finds that both job vacancy surveys 
        and historic experience shows that even at the top of the 
        business cycle, when the national unemployment rate drops to 
        the 4 percent or below, the economy fails to provide enough 
        jobs to employ everyone who wants to work. Consequently, the 
        need for direct job creation by the Federal Government is 
        especially important at such times to close the economy's job 
        gap without adding significantly to inflationary pressures, a 
        goal it is virtually impossible to achieve with economic 
        policies directed at boosting production in the private sector 
        of the economy.
            (14) The Congress further finds that in addition to 
        providing a non-inflationary pathway for the achievement of 
        full employment and the realization of the right to work, the 
        direct job-creation strategy, conceived and tested by the 
        Federal Government during the New Deal era, would also reduce 
        the severity of recessions while enriching the Nation with a 
        substantial increase in the production of badly needed public 
        goods and services.
            (15) The Congress further finds that because of the broad 
        range of social costs the problem of unemployment imposes on 
        society, including in particular reduced tax collections and 
        increased social welfare expenditures by all levels of 
        government, the achievement of full employment and the 
        realization of the right to work by means of the New Deal's 
        direct job creation strategy would cost far less than other 
        major social welfare benefits provided by government and might 
        even end up saving the public money.
            (16) Therefore, while the Congress fully supports efforts 
        to maximize the creation of private, public, and nonprofit 
        sector jobs through improved use of general economic and 
        structural policies, it recognizes and affirms the need to 
        supplement those policies with a well-designed direct job 
        creation program committed to and capable of closing the 
        economy's job gap across all phases of the business cycle.
    (b) Purpose.--It is the purpose of the Jobs for All Act to achieve 
genuine full employment and fulfill the right to useful work at living 
wages for all persons able, willing and seeking employment by 
establishing a National Full Employment Trust Fund to pay for a 
national program of public service employment capable of achieving 
these goals by supplementing the employment opportunities furnished by 
the existing private, public, and nonprofit sectors of the economy 
under existing law.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) ACA.--The term ``ACA'' means the Patient Protection and 
        Affordable Care Act as amended.
            (2) Disadvantaged individual or population group.--The term 
        ``disadvantaged individual'' or ``disadvantaged population 
        group'' means an individual or population group that the 
        Secretary has identified as suffering from disabilities or 
        socio-economic disadvantages that significantly interfere with 
        the individual's or group's access to equal employment 
        opportunity.
            (3) Comparable worth.--The term ``comparable worth'', used 
        with respect to work, means work that includes the composite of 
        the skill, effort, responsibility, and working conditions 
        normally required in the performance of a particular job as 
        determined pursuant to standards established by the Secretary 
        following consultations with experts in the field of comparable 
        worth wage assessments.
            (4) Equal opportunity grant.--The terms ``Equal Opportunity 
        Grant'' and ``grant'' mean an Employment Opportunity Grant 
        authorized in title III of this Act.
            (5) Grant recipient.--The term ``grant recipient'' means an 
        entity awarded an Employment Opportunity Grant under section 6 
        of this Act.
            (6) Health exchange.--the term ``Health Exchange'' or 
        ``State Health Exchange'' means an American Health Benefit 
        Exchange established under section 1311(b) or 1321(c) of the 
        ACA.
            (7) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given such term in section 102(17) of the Housing and 
        Community Development Act (42 U.S.C. 5302(17)).
            (8) One-stop center.--The term ``one-stop center'' means a 
        site described in section 121(e)(2) of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3151(e)(2)).
            (9) Program.--The term ``Program'' whether used as a noun 
        or an adjective, shall refer to the program established under 
        this Act.
            (10) Program employee.--The term ``Program employee'' means 
        a person certified as eligible for Program Employment under 
        section 306 of this Act and who is employed in a job funded by 
        the Trust Fund.
            (11) Program employment.--The term ``Program employment'' 
        means employment of a Program Employee in a job funded by the 
        Trust Fund.
            (12) Program trainee.--The term ``Program trainee'' means a 
        person enrolled in a training program funded under this Act.
            (13) Program training.--The term ``Program training'' means 
        training provide by a grant recipient in a training program 
        authorized under title III of this Act.
            (14) Reasonable needs.--The term ``reasonable needs'' shall 
        mean those needs reasonably required for a household to enjoy a 
        modest but adequate standard of living, taking into 
        consideration the size and composition of the household, the 
        local cost of living, and any cash or in-kind transfer benefits 
        available to the household.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (16) Small business.--The term ``small business'' has the 
        meaning given the term ``small business concern'' under section 
        3 of the Small Business Act (15 U.S.C. 632).
            (17) State.--The term ``State'' has the meaning given such 
        term in section 102(2) of the Housing and Community Development 
        Act (42 U.S.C. 5302(2)).
            (18) State health subsidy program.--The term ``State health 
        subsidy program'' means a program qualifying as an applicable 
        State health subsidy program under section 1413(e) of the ACA.
            (19) Trust fund.--The term ``Trust Fund'' refers to the 
        National Full Employment Trust Fund established under section 
        101.
            (20) Unit of general local government.--The term ``unit of 
        general local government'' has the meaning given such term in 
        section 102(1) of the Housing and Community Development Act (42 
        U.S.C. 5302(1)).
            (21) Urban county.--The term ``urban county'' has the 
        meaning given such term in section 102(6) of the Housing and 
        Community Development Act (42 U.S.C. 5302(6)).
            (22) WIOA.--The term ``WIOA'' means the ``Workforce 
        Innovation and Opportunity Act of 2014 as amended'' (29 U.S.C. 
        3101 et seq.).

     TITLE I--ESTABLISHMENT OF NATIONAL FULL EMPLOYMENT TRUST FUND

SEC. 101. NATIONAL FULL EMPLOYMENT TRUST FUND.

    There is hereby created an account in the Treasury of the United 
States to be known as the ``National Full Employment Trust Fund''.

SEC. 102. SOURCE OF FUNDS.

    There is hereby appropriated to the Trust Fund for the fiscal year 
in which the effective date set forth in section 314(d) occurs, and for 
each fiscal year thereafter, amounts equivalent to 100 percent of--
            (1) the taxes (including interest, penalties, and additions 
        to the taxes) received under section 4475 of the Internal 
        Revenue Code of 1986 as added by section 314 of this Act;
            (2) the amount on deposit in the Federal Unemployment Trust 
        Fund that otherwise would have been requisitionable by a State 
        Agency under section 904(f) of the Social Security Act as 
        amended (42 U.S.C. 1104(f)) for the payment of Unemployment 
        Insurance benefits that a Program employee would have been 
        entitled to receive but for that individual's Program 
        employment, with the amount debited from the book account or 
        accounts in the Federal Unemployment Trust Fund maintained for 
        the payment of the Unemployment Insurance benefits in question; 
        and
            (3) an amount equal to the FICA, Medicare, and personal 
        income taxes paid by Program employees on their Program 
        earnings, as estimated by the Secretary of the Treasury.

SEC. 103. LOANS FROM THE FEDERAL RESERVE SYSTEM.

    (a) In General.--If the amount available in the Trust Fund for 
allocation under title III of this Act is insufficient to prevent the 
national unemployment rate from rising more than one full percentage 
point above its previously attained level, the Board of Governors of 
the Federal Reserve System shall lend such additional amounts to the 
Trust Fund as are necessary to allow the Secretary of Labor to make 
such additional allocations under title III of this Act as are 
necessary to restore the national unemployment rate to its allowable 1 
percent range of upward variation.
    (b) Repayment.--Amounts lent to the Trust Fund by the Board of 
Governors of the Federal Reserve System under subsection (a) shall be 
repaid by the Trust Fund over 10 years, with interest payable at the 
same average rate the Federal Government contracts to pay on 10-year 
bonds sold during the period beginning 45 days prior to the date the 
loans were made to the Trust Fund and ending 45 days following such 
date.
    (c) Cancellation of Debt.--The Board of Governors of the Federal 
Reserve System, in consultation with the Federal Open Market Committee, 
shall have a continuing obligation to review any debt owed by the Trust 
Fund to the Federal Reserve System, and if it determines that the debt 
or any portion thereof can be cancelled without significant adverse 
effect on the economy, it shall do so.

SEC. 104. TRUST FUND CORPUS RESERVED.

    The corpus of the Trust Fund may be used for no other purpose than 
to fund--
            (1) Employment Opportunity Grants issued under title III of 
        this Act, including for job creation and training projects 
        directly administered by the Secretary pursuant to section 311;
            (2) administrative activities and programs under the WIOA 
        that the Secretary determines are necessary or useful to 
        achieve the purposes of this Act; and
            (3) administrative expenses reasonably incurred by the 
        Secretary to implement and administer programs and activities 
        authorized under this Act.

                    TITLE II--PROGRAM ADMINISTRATION

SEC. 201. IN GENERAL.

    The Secretary shall establish an appropriate administrative 
structure within the Department of Labor to administer the Program.

SEC. 202. GRANT MANAGEMENT.

    (a) In General.--The Secretary shall establish and administer an 
evaluation, approval, and monitoring process for Employment Opportunity 
Grants that is transparent, apolitical, and free of outside influence.
    (b) Project Timing.--The evaluation and approval process shall 
invite proposals not only for projects that are suitable for immediate 
implementation, but also for projects that can be rapidly implemented 
or expanded in the future when unemployment increases precipitously due 
to a recession or other causes. Projects approved for future 
implementation may receive immediate funding to undertake preparatory 
work necessary for the rapid implementation of the project when it is 
needed.
    (c) Monitoring and Technical Assistance.--The performance of grant 
recipients shall be monitored during as well as at the conclusion of a 
grant-funded project, and technical assistance shall be offered to 
grant recipients, as needed, to help insure the success of their grant-
funded projects.
    (d) Post-Project Review.--A post-project review of the performance 
of every grant-funded projects shall be conducted and documented.

SEC. 203. OFFICE OF TECHNICAL ASSISTANCE.

    The Secretary shall establish and administer an Office of Technical 
Assistance to advise and assist grant recipients and potential grant 
recipients in the identification and adoption of best practices in the 
design and administration of job creation projects, the preparation of 
grant proposals, the satisfaction of Program requirements, and the 
fulfillment of the Program's purposes.

SEC. 204. OFFICE OF EDUCATIONAL SUPPORT.

    The Secretary shall establish and administer an Office of 
Educational Support to encourage and affirmatively assist Program 
employees who have not yet earned a high school diploma or its 
equivalent to complete his or her secondary education; and to counsel 
Program employees concerning post-secondary vocational and academic 
educational opportunities.

SEC. 205. OFFICE OF ASSISTED PLACEMENT.

    The Secretary shall establish and administer an Office of Assisted 
Placement to coordinate the creation and operation of Assisted 
Placement Offices in all one-stop centers for the purpose of providing 
placement services to individuals eligible for such services under 
section 308.

SEC. 206. OFFICE OF DISPUTE RESOLUTION.

    (a) In General.--The Secretary shall establish and administer an 
Office of Dispute Resolution to perform the dispute resolution 
functions described in section 313.
    (b) Whistleblower Hotline.--The Secretary shall establish and 
administer both an online and telephone whistleblower hotline for the 
informal reportage of alleged violations of this Act. Provided enough 
information is furnished via the hotline to initiate an investigation, 
the matter shall be referred for appropriate follow up.
    (c) South African CCMA Commended as Model.--The rules and 
procedures adopted by the Secretary for the resolution of disputes 
within the scope of section 313(b) shall be designed to insure a prompt 
and fair resolution of employment disputes in a process that is free of 
cost to the participants and easily navigated by all parties. To that 
end, the Congress commends the administrative practices and rules of 
the South African Commission for Conciliation, Mediation and 
Arbitration (CCMA) as a model for the dispute resolution system 
established under this section.

SEC. 207. OFFICE OF STATISTICS AND RESEARCH.

    The Secretary shall establish and administer an Office of 
Statistics and Research to provide the public with useful information 
concerning the operations of the Program, to provide Program 
administrators with evidence-based guidance to aid them in their work, 
and to assist the Congress in its oversight of the Program. Employing 
rigorous social science methodologies, and with the advice and 
assistance of the Bureau of Labor Statistics where appropriate, the 
Office of Statistics and Research shall--
            (1) collect, tabulate, analyze, and report statistical data 
        on labor market conditions that are relevant to Program 
        operations;
            (2) undertake basic and applied research to guide Program 
        administrators in the performance of their duties and to track 
        the Program's success or lack thereof in combating various 
        aspects of the problem of unemployment and the harmful effects 
        associated with the problem of unemployment;
            (3) identify and disseminate information regarding best 
        practices in Program design and implementation;
            (4) catalogue basic information about each and every job 
        creation project or job-training program funded by an 
        Employment Opportunity Grant and create a permanent and easily 
        accessible archive of this information on the Program's 
        website;
            (5) develop methodologies to estimate and report the 
        revenues and savings generated by the Program for various 
        levels of government either directly through increased tax 
        revenues or indirectly through reductions in other government 
        expenditures; and
            (6) carry out other research tasks in support of the 
        Program's goals.

SEC. 208. NATIONAL EMPLOYMENT CONFERENCE.

    (a) In General.--The Secretary shall convene a national employment 
conference not later than 1 year after the date of enactment of this 
Act, and annually thereafter.
    (b) Purpose of Conference.--The purpose of the conference shall be 
to report on research concerning the operations of the Program and its 
role in addressing various aspects of the problems of unemployment, to 
share best practices in addressing such problems, and to address 
challenges in the administration of this Act.

SEC. 209. PROGRAM WEBSITE.

    The Secretary shall establish and administer an internet website to 
provide the public with information concerning the Program and to 
archive information concerning its operations.

SEC. 210. STAFFING ADMINISTRATIVE FUNCTIONS.

    To the extent reasonably possible, the Secretary shall fill 
positions within the Program's administrative offices with individuals 
who are eligible for Program employment.

SEC. 211. WORKFORCE INNOVATION AND OPPORTUNITY ACT.

    (a) In General.--The Secretary shall make adjustments in the 
activities and programs administered by the Department of Labor under 
the WIOA as necessary or useful to serve the needs of this Act.
    (b) Expansion of Workforce Development Boards.--To facilitate the 
implementation of the adjustments described in subsection (a) at the 
State and local level:
            (1) Section 101(b)(1)(C) of the WIOA (29 U.S.C. 
        3111(b)(1)(C)) is amended--
                    (A) by striking ``and'' at the end of subclause 
                (II);
                    (B) by inserting ``and'' at the end of subclause 
                (III); and
                    (C) by adding at the end the following:
                                    ``(IV) are not less than 25 percent 
                                of the chief executive officers of 
                                minority-serving, community-based 
                                organizations;''.
            (2) Section 107(b)(2)(C) of the WIOA (29 U.S.C. 
        3122(b)(2)(A)) is amended by adding at the end the following:
                            ``(iv) shall include not less than 25 
                        percent of the chief executive officers of 
                        minority-serving, community-based 
                        organizations;''.
            (3) Effective date.--The amendments to the WIOA set forth 
        in this subsection shall take effect as if enacted as part of 
        the WIOA (29 U.S.C. 3101 et seq.).

                TITLE III--EMPLOYMENT OPPORTUNITY GRANTS

SEC. 301. GRANTS.

    Subject to the availability of funds in the Trust Fund, the 
Secretary shall make grants to eligible entities for the purpose of 
creating--
            (1) employment opportunities for persons eligible for 
        Program employment in projects designed to address community 
        needs and reduce disparities in health, housing, education, job 
        readiness, and public infrastructure that have impeded these 
        communities from realizing their full economic potential; and
            (2) free-standing job-training programs that provide job 
        training, possibly including general education, to--
                    (A) Program employees pursuant to contractual 
                arrangements between the training Program and their 
                employer to provide the Program employees with 
                specialized training needed for the performance of 
                their jobs; or
                    (B) persons eligible for Program employment who 
                seek such training rather than immediate employment in 
                order to qualify for a Program or non-program job for 
                which they otherwise would not qualify, provided that 
                circumstances are such that the training Program is 
                justified in providing reasonable assurances to the 
                individuals enrolled in it that upon the successful 
                completion of their training, they will be able to 
                obtain a Program or non-program job that utilize their 
                newly acquired skills.

SEC. 302. ELIGIBLE ENTITIES.

    Entities eligible to receive grants under this section shall 
include--
            (1) departments and agencies of the Federal Government with 
        the approval of the Secretary of the department or the head of 
        the agency;
            (2) States, Indian Tribes, units of general local 
        government, and urban counties;
            (3) agencies of the entities listed in paragraph (2) with 
        the approval of the head of the agency or other person with the 
        authority to make such commitments;
            (4) independent or quasi-independent public-sector agencies 
        created by any level of government; and
            (5) not-for-profit organizations that qualify as tax exempt 
        under section 501(c)(1), (3), (5), or (19) of the Internal 
        Revenue Code.

SEC. 303. USE OF FUNDS.

    Grants shall be awarded under this title for the following 
purposes:
            (1) The construction, reconstruction, rehabilitation, and 
        site improvement of affordable housing and public facilities, 
        including improvements in the energy efficiency or 
        environmental quality of such public facilities or housing.
            (2) The provision of human services, including childcare, 
        health care, support services for individuals and families with 
        special needs, education, after-school and vacation programs 
        for children, and recreational and cultural enrichment programs 
        for persons of all ages.
            (3) Programs that provide disadvantaged youth with 
        opportunities for employment, education, leadership 
        development, entrepreneurial skills development, and training.
            (4) The repair, remodeling, and beautification of schools, 
        community centers, libraries, and other community-based public 
        facilities, and the augmentation of staffing for the services 
        they provide.
            (5) The restoration and revitalization of abandoned and 
        vacant properties to alleviate blight in distressed and 
        foreclosure-affected areas.
            (6) The expansion of emergency food programs to reduce 
        hunger and promote family stability.
            (7) The augmentation of staffing in Head Start, and other 
        early childhood education programs to promote school readiness, 
        early literacy, life-long learning, and family involvement in 
        their children's education.
            (8) The maintenance, renovation and improvement of parks, 
        playgrounds, and other public spaces.
            (9) Providing labor for non-capital-intensive aspects of 
        federally or State-funded infrastructure projects.
            (10) The implementation of environmental initiatives 
        designed to conserve natural resources, remediate environmental 
        damage, reverse climate change, and achieve environmental 
        sustainability.
            (11) The enhancement of emergency preparedness for natural 
        and other community disasters and of post-emergency assistance 
        for the victims of disasters.
            (12) The expansion of work-study opportunities for 
        secondary and post-secondary students, and the creation of 
        ``bridge employment'' opportunities for recent graduates who 
        have been unable to find work in the occupations for which they 
        have trained.
            (13) Programs that emulate the Federal art, music, theater, 
        and writers projects of the Works Projects Administration by 
        providing work for unemployed writers, musicians, artists, 
        dancers and actors on projects that are consistent with the 
        public service and equality-enhancing objectives of this Act.
            (14) The provision of job training to better equip Program 
        employees to perform their program-funded jobs or to allow 
        unemployed and underemployed individuals to obtain employment 
        for which they otherwise would not qualify.
            (15) Other activities analogous to those described in 
        paragraphs (1) through (14) that address public needs and can 
        be implemented quickly.

SEC. 304. GRANT CONDITIONS.

    As a condition for receiving a grant under this title, a grant 
applicant must--
            (1) show that it has, to the extent reasonably possible, 
        consulted with community-based organizations, local government 
        officials, and other interested parties concerning--
                    (A) the needs of the community to be served by the 
                project(s) for which it is seeking funding;
                    (B) the ways in which its proposed project would 
                serve those needs;
                    (C) how it will coordinate its activities with 
                other providers of related services in the community; 
                and
                    (D) how it will engage with local residents, 
                community-based organizations, government officials, 
                and other interested parties on an ongoing basis during 
                the course of the project(s);
            (2) agree to comply with the nondiscrimination policy set 
        forth under section 109 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5309);
            (3) with respect to the funds allocated for each project 
        funded under the grant--
                    (A) allocate not less than 75 percent for wages, 
                benefits, and support services such as childcare for 
                Program employees and the limited number of personnel 
                who are permitted to be paid from Program funds under 
                the terms of the grant even though they are not 
                eligible for Program employment; and
                    (B) allocate the remaining funds to defray the 
                nonlabor costs of the project, including necessary 
                capital goods, supplies, materials, rental payments, 
                transportation costs, and other similar expenses;
            (4) use revenue generated by a project funded under the 
        grant (whether in the form of fees paid for services provided 
        by the project, reimbursements for expenses incurred by the 
        project, or income from the sale of goods or services produced 
        by the project) to--
                    (A) supplement the grant-funded project's budget; 
                or
                    (B) support other projects funded by the grant in 
                conformity with the same rules and requirements that 
                apply to the use of grant funds;
            (5) agree to return to the Trust Fund any unutilized grant 
        monies and any unutilized income received from the sale of 
        goods and services produced by a grant-funded project;
            (6) ensure that any employment funded under the grant 
        complies with sections 305, 306, and 307;
            (7) institute an outreach program with community 
        organizations and service providers in low-income communities 
        to provide information about employment opportunities funded 
        under the grant;
            (8) ensure that not less than 35 percent of individuals 
        employed under the grant qualify as disadvantaged, unless there 
        are insufficient numbers of such individuals referable to the 
        project by the local one-stop center, in which case the 
        percentage of such individuals employed under the grant shall 
        be as great as is reasonably possible;
            (9) ensure that all grant-funded projects provide adequate 
        job training, either in-house by the Program employer or by 
        not-for-profit training programs under contract with the 
        Program employer, to ensure that the Program employees they 
        hire are able to perform their jobs in a professionally 
        competent manner;
            (10) agree to carry out all grant-funded projects in a 
        manner that is as ecologically sustainable as is reasonably 
        possible;
            (11) agree to cooperate with the efforts of the Office of 
        Assisted Placement in providing Program employment or grant-
        funded training for individuals eligible for assisted placement 
        under section 308; and
            (12) agree to cooperate with the procedures established by 
        the Office of Dispute Resolution in resolving disputes in 
        accord with the provisions of section 313.

SEC. 305. PROGRAM EMPLOYMENT DESCRIBED.

    Employment funded under this section shall meet the following 
specifications:
            (1) Any employer that employs an individual whose 
        employment is funded under the grant shall--
                    (A) continue to employ such individual absent good 
                cause for the termination of the individual's 
                employment for as long as the project has need of the 
                services provided by the individual or until the 
                individual resigns, whichever comes first;
                    (B) employ such individual for between 35 and 40 
                hours per week if the individual desires full-time 
                employment, and for a mutually agreed number of hours 
                per week less than 35 if the individual desires part-
                time employment, except that this requirement shall not 
                apply if a grant recipient's Employment Opportunity 
                Grant provides otherwise for good cause shown during 
                the application process;
                    (C) comply with the responsible contractor 
                standards of the Federal Acquisition Regulation (48 
                C.F.R. 1 et seq.);
                    (D) pursuant to guidelines established by the 
                Secretary, provide compensation to such individual that 
                is comparable in value to the compensation provided 
                public sector employees who perform similar work in the 
                community where such individual is employed or, if no 
                public sector employees perform such similar work, 
                provide compensation that is of comparable value to the 
                compensation provided public sector employees hired to 
                perform work of comparable worth in the community where 
                such individual is employed;
                    (E) if such employment is in construction, provide 
                compensation to any laborer or mechanic employed under 
                the grant at rates not less than those prevailing on 
                similar construction in the locality as determined by 
                the Secretary in accordance with subchapter IV of 
                chapter 31 of title 40, United States Code; and
                    (F) offer affirmative assistance to such individual 
                in--
                            (i) applying for social benefits for which 
                        such individual or the members of such 
                        individual's family may be eligible; and
                            (ii) satisfying continuing reporting 
                        obligations required to maintain eligibility 
                        for social benefits such individual or the 
                        members of such individual's family are 
                        receiving.
            (2) Any grant recipient that operates a training Program 
        funded under this title shall--
                    (A) provide Program trainees a cost-of-living 
                stipend set pursuant to standards established by the 
                Secretary and made payable to the Program trainee as 
                long as the Program trainee maintains satisfactory 
                attendance, participation, and progress in the training 
                Program; and
                    (B) offer affirmative assistance to individuals 
                enrolled in the training program in--
                            (i) applying for social benefits for which 
                        they or the members of their family may be 
                        eligible; and
                            (ii) satisfying continuing reporting 
                        obligations required to maintain eligibility 
                        for social benefits they or members of their 
                        family are receiving.
            (3) No individual whose employment is funded under this Act 
        may work for an employer at which a collective bargaining 
        agreement is in effect covering the same or similar work, 
        unless--
                    (A) the consent of the union at such employer is 
                obtained; and
                    (B) negotiations have taken place between such 
                union and the employer as to the terms and conditions 
                of such employment.
            (4) No individual may be hired by a not-for-profit 
        organization in a position funded under this Act to perform 
        functions or services that are customarily performed, either 
        exclusively or almost exclusive by a Unit of General Local 
        Government unless the Unit of General Local Government in 
        question refuses to apply for Program funding to expand or 
        improve its own performance of the functions or services in 
        question.
            (5) No individual whose employment is funded under this Act 
        may be employed in a position if--
                    (A) employing such individual will result in the 
                layoff or partial displacement (such as a reduction in 
                hours, wages, or employee benefits) of an existing 
                employee of the employer; or
                    (B) such individual will perform the same or 
                substantially similar work that had previously been 
                performed by an employee of the employer who has been 
                laid off within the preceding 12 months or has been 
                partially displaced as that term is described in 
                subparagraph (A) unless the employee has declined an 
                offer of reinstatement to the position the employee 
                occupied immediately prior to being laid off or 
                partially displaced.
            (6) No individual may be hired for a position funded under 
        this Act in a manner that infringes upon the promotional 
        opportunities of an existing employee of the Program employer.
            (7) Program employees shall qualify as public sector 
        employees for purposes of all otherwise applicable Federal, 
        State, and local laws.

SEC. 306. ELIGIBILITY FOR PROGRAM EMPLOYMENT.

    (a) Certification by One-Stop Center.--An individual seeking 
Program employment shall have his or her eligibility for such 
employment certified by a one-stop center serving the area where the 
Program employment is located.
    (b) Requirements for Certification.--To be certified as eligible 
for such employment, the individual must satisfy at least one of the 
following conditions as of the date the individual is hired to fill a 
job funded under this Act:
            (1) The individual has been unemployed for less than 30 
        days and is eligible to receive Unemployment Insurance 
        benefits.
            (2) The individual is unemployed and has been registered at 
        and seeking employment with the assistance of a one-stop center 
        for not less than 30 days prior to the date on which the 
        individual is so hired.
            (3) The individual has been employed part-time while 
        registered at and seeking full-time employment with the 
        assistance of a one-stop center for not less than 30 days prior 
        to the date the individual is so hired.
    (c) Availability for Non-Program Employment.--
            (1) All Program employees shall be automatically registered 
        with the one-stop center serving the area where the individual 
        resides as available for and seeking work.
            (2) The one-stop center serving the area where a Program 
        employee resides shall screen inquiries from employers 
        concerning available jobs and forward those that seem suitable 
        to qualified Program employees.
            (3) For purposes of paragraph (2), the term ``suitable'', 
        used with respect to a job, means an offer of employment that--
                    (A) a newly unemployed individual who has just 
                begun receiving Unemployment Insurance benefits would 
                be required to accept in order to avoid forfeiting 
                their eligibility for continued receipt of such 
                benefits under the laws of the State in which the 
                Program employee is employed; and
                    (B) is reasonably expected to last at least 6 
                months.
            (4) Program employees shall be provided time off with pay 
        to respond to inquiries regarding suitable non-Program job 
        openings.
            (5) A Program employee who refuses a suitable job offer 
        resulting from such an inquiry without good cause shall--
                    (A) forfeit their eligibility for Program 
                employment for a period of 30 days, subject to the same 
                procedures and right of appeal that applies to 
                recipients of Unemployment Insurance who refuse 
                suitable employment; and
                    (B) maintain their eligibility for Program 
                employment until such proceedings are completed.
            (6) A Program employee who terminates their Program 
        employment in order to accept other employment, and who 
        subsequently is terminated from that other employment without 
        fault on the individual's part, or who terminates that 
        employment voluntarily for good cause, shall be eligible for 
        immediate reemployment in a job funded under this Act.
    (d) Involuntary Termination of Program Employment.--
            (1) A Program employee who is involuntarily terminated from 
        their Program Job for inadequate performance of job 
        responsibilities shall not lose their eligibility for 
        employment in another Program-funded job.
            (2) A Program employee who is involuntarily terminated for 
        misconduct shall lose their eligibility for Program employment 
        for 30 days.

SEC. 307. COMPENSATION.

    For purposes of section 305(1)(D)--
            (1) The term ``compensation'' shall mean hourly wage rates, 
        paid and unpaid leave time, retiree benefits, group life 
        insurance, disability insurance, and health benefits.
            (2) The term ``comparable in value'' shall mean--
                    (A) as regards hourly wage rates, the same hourly 
                wage rate;
                    (B) as regards paid and unpaid leave time, the same 
                paid and unpaid leave time;
                    (C) as regards retiree benefits, a defined 
                contribution benefit of comparable actuarial value 
                provided in a plan established and administered by the 
                Secretary;
                    (D) as regards group life and disability insurance 
                benefits, an actuarially equivalent benefit provided in 
                a plan established and administered by the Secretary; 
                and
                    (E) as regards health benefits, access to health 
                insurance that provides approximately the same level of 
                benefits for approximately the same employee 
                contribution under the provisions of paragraph (3).
            (3) Unless a Program Grant provides otherwise for good 
        cause shown by the grant applicant, a Program employer shall 
        satisfy the requirements of this section relating to the 
        provision of health benefits by providing affirmative 
        assistance to each of its Program employees in obtaining health 
        benefits through a State Health Exchange, as permitted by the 
        following exceptions to the ACA that apply only to Program 
        employees as hereby enacted:
                    (A) The acquisition by a Program employee of such 
                benefits through a Health Exchange shall not trigger 
                tax penalties that would otherwise apply to the 
                employee or the employee's employer under the ACA.
                    (B) Program employees who apply for health benefits 
                under this paragraph shall be eligible for the same 
                State Health Subsidy Programs as employed individuals 
                who do not have access to an ``eligible employer-
                sponsored plan'' as that term is defined in section 
                5000A(f)(2) of title 26, United States Code.
                    (C) Any premiums a Program employee is required to 
                pay for a health plan obtained under this subparagraph 
                shall be paid by the employee's Program employer via 
                payroll deductions.
                    (D) A Program employee's wages shall be adjusted on 
                an individual basis to the extent necessary to satisfy 
                the comparable-value requirement of section 305(1)(D) 
                taking into consideration the tax treatment accorded 
                any additions or subtractions from the employee's wages 
                required to satisfy that comparable-value requirement.
                    (E) Program employers shall not be subject to the 
                penalty set forth in section 4980D of title 26, United 
                States Code, based on wage adjustments that comply with 
                this paragraph.
            (4) In consideration for the savings the Program 
        established under this Act will generate in health care 
        spending by all levels of government, the subsidy costs borne 
        by the Federal Government or by State and local governments in 
        providing health benefits to Program employees under paragraph 
        (3) shall not be chargeable to or reimbursed from the Program's 
        budget.
            (5) Chapter 43 of the Internal Revenue Code of 1986 is 
        amended by--
                    (A) renumbering section 4980D(c)(4) as section 
                4980D(c)(5); and
                    (B) inserting the following new section 
                4980D(c)(4):
            ``(4) Tax not to apply to certain premium reimbursements.--
        No tax shall be imposed by subsection (a) on payments or 
        reimbursements of health insurance premiums made pursuant to 
        section 307(3)(C) or (D) of the Jobs for All Act.''.
            (6) Chapter 1 of the Internal Revenue Code of 1986 is 
        amended by inserting after section 106(g) the following new 
        subsection (h):
    ``(h) Reimbursements of Certain Health Insurance Premiums.--For 
purposes of this section, payments or reimbursements of health 
insurance premiums made pursuant to section 307(3)(C) or (D) of the 
Jobs for All Act shall not be included in the gross income of the 
employee.''.

SEC. 308. ASSISTED PLACEMENT.

    (a) Individuals Eligible for Assisted Placement.--Individuals 
eligible for assisted placement shall include--
            (1) individuals who have been unable to find Program 
        employment within 30 days following the certification of their 
        eligibility for such employment;
            (2) individuals who are certified as eligible for assisted 
        placement by a one-stop center because of special circumstances 
        that make it unlikely the individual will be able to find 
        employment within a reasonable period of time without assisted 
        placement services; and
            (3) individuals whose qualifications and work experience 
        are such that they need additional training to qualify for a 
        job that pays enough to meet their own and their dependent's 
        reasonable needs.
                    (A) For purposes of this paragraph and subsection 
                (c) of this section, the term ``dependents'' shall mean 
                persons claimable as dependents on the individual's 
                Federal income tax return.
                    (B) The Secretary shall engage in notice-and-
                comment rulemaking to establish a methodology for 
                developing reasonable-needs standards for use in 
                implementing this paragraph.
    (b) Assisted Placement Services.--Upon the registration of an 
eligible individual for assisted placement services, the Assisted 
Placement Office shall--
            (1) assess the individual's qualifications for employment 
        and his or her interests in particular kinds of employment or 
        training;
            (2) identify opportunities for Program employment that 
        appear to be suitable for the individual in light of the 
        individual's qualifications and interests, along with any 
        training opportunities that also may be of interest to the 
        individual;
            (3) discuss these opportunities for Program employment and 
        training with the individual;
            (4) for those opportunities the individual expresses an 
        interest in pursuing, contact the grant recipient offering the 
        opportunity, remind the grant recipient of its obligation to 
        cooperate with the Assisted Placement Office in placing 
        individuals in Program employment or desired training, and 
        arrange an interview for the individual to explore whether a 
        mutually acceptable placement is possible with the grant 
        recipient;
            (5) follow up with both the individual and grant recipients 
        to whom the individual has been referred to ascertain whether a 
        placement has been achieved, and if not why;
            (6) provide individual counseling and support services for 
        individuals eligible for assisted placement as needed to 
        achieve a successful placement;
            (7) provide support services and additional funding to 
        grant recipients, as needed, to accommodate the special needs 
        of individuals who need such accommodation to find and succeed 
        in Program employment or training; and
            (8) continue to work with the individual until a successful 
        placement in Program employment or grant-funded training has 
        been achieved, or until the Assisted Placement Office 
        concludes, supported by adequate documentation, that the 
        individual is unable or unwilling to provide the level of 
        cooperation required to obtain and succeed in Program 
        employment or grant-funded training, in which case the Assisted 
        Placement Office shall offer assistance to the individual in 
        arranging appropriate services to address the problems that are 
        interfering with the individual's ability to find and succeed 
        in Program employment or training.
    (c) Additional Assistance Available.--To the extent necessary to 
ensure that individuals who qualify for assisted placement under this 
section are able to earn enough to meet their own reasonable needs and 
those of their dependents, the Assisted Placement Office shall have the 
authority--
            (1) to arrange preferential placement for such individuals 
        in grant-funded training programs, and following the completion 
        of their training, provide assisted placement services to such 
        individuals to ensure that they secure employment inside or 
        outside the Program in a job that utilizes their newly acquired 
        skills;
            (2) to the extent necessary, to meet their reasonable 
        needs, provide such individuals with preferential access to 
        goods and services produced by the Program, such as affordable 
        housing and childcare services;
            (3) to supplement the income of such individuals with the 
        equivalent of a voucher for housing assistance under section 
        8(o) of the United States Housing Act of 1937, if such a 
        voucher is not otherwise available; and
            (4) to furnish such individuals with other income 
        supplements that expand eligibility for or add value to the 
        Earned Income Tax Credit (26 U.S.C. 32), the Child Tax Credit 
        (26 U.S.C. 24), or the Low Income Home Energy Assistance 
        program (42 U.S.C. 8621 et seq.).
    (d) Grant Recipient's Obligation To Cooperate.--Grant recipients 
shall cooperate with efforts to provide assisted placement to 
individuals eligible for assisted placement under subsection (a). This 
duty shall mean, among other things, that a grant recipients must have 
good cause to refuse Program employment to a person referred to it for 
assisted placement.

SEC. 309. PRIORITY GIVEN TO CERTAIN PROJECTS.

    Priority in the award of Employment Opportunity Grants shall be 
accorded to projects that--
            (1) provide goods and services, such as childcare, 
        transportation, affordable housing, job training, and peer 
        support, that make it easier for individuals who want to work 
        to do so; or
            (2) serve areas with the greatest level of economic need, 
        determined for each such area by factors such as--
                    (A) the unemployment rate;
                    (B) the rate of poverty;
                    (C) the number of census tracts in the area with 
                concentrated poverty;
                    (D) the level of median income in the area;
                    (E) the percentage of residential units in the area 
                that appear to have been abandoned;
                    (F) the percentage of homes in the area that are in 
                foreclosure; and
                    (G) indicators of poor resident health, including 
                high rates of chronic disease, infant mortality, and 
                low life expectancy.

SEC. 310. STARTUP PERIOD.

    Since it will take time for the Program established by this Act to 
develop the project-management experience and project-development 
capacity needed to fully achieve the Act's goals, the Secretary shall 
have the authority to establish reasonable priorities in planning and 
executing the implementation of this Act, provided--
            (1) the number of jobs created in each community during the 
        startup period is roughly proportionate to the level of 
        unemployment, involuntary part-time employment, and non-labor 
        force participation by persons who want and are available to 
        accept jobs in each community, and
            (2) the type of jobs created in each community 
        disproportionately favor those individuals and population 
        groups who enjoy the fewest alternative employment 
        opportunities.

SEC. 311. SECRETARY'S AUTHORITY TO ADMINISTER PROJECTS DIRECTLY.

    (a) In General.--The Secretary shall have the authority to use 
Trust Fund monies to establish and directly administer job creation 
projects during the startup period provided for in section 310.
    (b) When the Startup Period Has Ended.--Once the startup period 
described in section 125 has ended, the Secretary shall have a 
continuing obligation to ensure the availability of enough jobs to 
provide suitable work for everyone who wants it everywhere in the 
Nation, including by the direct administration of job creation projects 
to the extent necessary or useful in achieving the purposes of this 
Act.

SEC. 312. REPORTS.

    (a) Reports by Grant Recipients.--Not later than 90 days after the 
last day of each fiscal year for which grant funding has been provided 
under this title, grant recipients shall submit to the Secretary a 
report containing such information as the Secretary requires concerning 
their use of their grant.
    (b) Report to Congress.--At least once every 6 months, the 
Secretary shall report to Congress on the Act's implementation and 
effects.

SEC. 313. DISPUTE RESOLUTION.

    (a) Disputes Concerning the Allocation or Use of Program Funds.--
Alleged improprieties involving the allocation or use of Program funds, 
including, without limitation, alleged violations of paragraph (3), 
(4), or (5) of section 304, shall be investigated by the Office of 
Dispute Resolution pursuant to rules and procedures established by the 
Secretary. Those rules and procedures shall be designed to ensure a 
prompt and fair review of the contested matter based on the obligation 
of all interested parties to full and transparent cooperation with the 
investigation. A failure to provide such cooperation shall be deemed to 
support a conclusion that the information being sought would be adverse 
to the noncooperating party's interests. Any administrative response 
ordered by the Office of Dispute Resolution as a result of its 
investigation shall be designed to further the goals and integrity of 
the Program.
    (b) Disputes Arising Out of Program Employment and Training.--
Disputes regarding an individual's eligibility for Program employment 
or training, the terms and conditions of the individual's Program 
employment or training, the imposition of discipline on a Program 
employee or Program trainee, the involuntary termination of an 
individual's Program employment or training, or any other individual 
right, whether created by this Act or based on otherwise existing law, 
may be submitted by the adversely affected individual for resolution 
pursuant to the rules and procedures established for the resolution of 
such disputes by the Office of Dispute Resolution.
    (c) Waiver of Rights.--For disputes falling within the scope of 
subsection (b), the election by an individual to pursue a legal remedy 
other than that provided by the Program's dispute resolution system 
shall automatically waive the individual's right to submit the dispute 
to the Program's dispute resolution system unless all parties to the 
dispute agree to the termination of the other legal proceeding and the 
submission of the dispute for resolution under subsection (b).
    (d) Breaches of a Collective Bargaining Agreement.--If a dispute 
falling within the scope of subsection (a) or (b) includes an alleged 
breach of a collective bargaining agreement (``CBA''), the jurisdiction 
of the Program's Office of Dispute Resolution may not be invoked to 
decide any issue that depends on the interpretation of the CBA, but it 
may be invoked under subsection (a) or (b), as appropriate, to decide 
other aspects of the dispute, either before the contract dispute is 
resolved if both parties to the CBA agree to the submission, or after 
the contract dispute has been resolved if issues remain that are 
suitable for resolution by the Office of Dispute Resolution.
    (e) Other Disputes.--Persons or entities that claim to have 
suffered a legally cognizable detriment as a result of a violation of 
this Act that does not fall within the scope of subsection (a) or (b) 
may have their claim investigated and obtain an appropriate 
administrative response by filing a complaint with the Office of 
Dispute Resolution.
    (f) Whistleblower Hotline.--In addition to the procedures 
established by the Secretary to formally invoke the jurisdiction of the 
Office of Dispute Resolution, information involving alleged violations 
of this Act may be reported informally to the Office of Dispute 
Resolution.

SEC. 314. TAX ON SECURITIES TRANSACTIONS.

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

             ``Subchapter C--Tax on Securities Transactions

``SEC. 4475. TAX ON TRADING TRANSACTIONS.

    ``(a) Imposition of Tax.--There is hereby imposed a tax on the 
transfer of ownership in each covered transaction with respect to any 
security.
    ``(b) Rate of Tax.--The tax imposed under subsection (a) with 
respect to any covered transaction shall be the applicable percentage 
of the specified base amount with respect to such covered transaction. 
The applicable percentage shall be--
            ``(1) 0.2 percent in the case of a security described in 
        subparagraph (A) or (B) of subsection (e)(1),
            ``(2) 0.06 percent in the case of a security described in 
        subparagraph (C) of subsection (e)(1),
            ``(3) 0.2 percent in the case of a security described in 
        subparagraph (D) of subsection (e)(1) if the underlying assets 
        on which the rights and obligations created by the security are 
        based consist of other securities described in subparagraph (A) 
        or (B) of subsection (e)(1),
            ``(4) 0.2 percent in the case of a security described in 
        subparagraph (F) of subsection (e)(1) if the index on which the 
        rights and obligations created by the security are based is an 
        index referencing the values of securities described in 
        subparagraph (A) or (B) of subsection (e)(1)(A), and
            ``(5) 0.06 percent in the case of any security described in 
        subparagraph (D), (E), or (F) of subsection (e)(1) (other than 
        a security described in paragraph (3) or (4)).
    ``(c) Specified Base Amount.--For purposes of this section, the 
term `specified base amount' means--
            ``(1) except as provided in paragraph (2), the fair market 
        value of the security (determined as of the time of the covered 
        transaction), and
            ``(2) in the case of any payment described in subsection 
        (h), the amount of such payment.
    ``(d) Covered Transaction.--For purposes of this section, the term 
`covered transaction' means--
            ``(1) except as provided in paragraph (2), any purchase 
        if--
                    ``(A) such purchase occurs or is cleared on a 
                facility located in the United States, or
                    ``(B) the purchaser or seller is a United States 
                person, and
            ``(2) any transaction with respect to a security described 
        in subparagraph (D), (E), or (F) of subsection (e)(1), if--
                    ``(A) such security is traded or cleared on a 
                facility located in the United States, or
                    ``(B) any party with rights under such security is 
                a United States person.
    ``(e) Security and Other Definitions.--For purposes of this 
section--
            ``(1) Security.--The term `security' means--
                    ``(A) any share of stock in a corporation,
                    ``(B) any partnership or beneficial ownership 
                interest in a partnership or trust,
                    ``(C) any note, bond, debenture, or other evidence 
                of indebtedness, other than a State or local bond the 
                interest of which is excluded from gross income under 
                section 103(a),
                    ``(D) any evidence of an interest in, or a 
                derivative financial instrument with respect to, any 
                security or securities described in subparagraph (A), 
                (B), or (C),
                    ``(E) any derivative financial instrument with 
                respect to any currency or commodity including notional 
                principal contracts, and
                    ``(F) any other derivative financial instrument any 
                payment with respect to which is calculated by 
                reference to any specified index.
            ``(2) Derivative financial instrument.--The term 
        `derivative financial instrument' includes any option, forward 
        contract, futures contract, notional principal contract, or any 
        similar financial instrument.
            ``(3) Specified index.--The term `specified index' means 
        any one or more of any combination of--
                    ``(A) a fixed rate, price, or amount, or
                    ``(B) a variable rate, price, or amount, which is 
                based on any current objectively determinable 
                information which is not within the control of any of 
                the parties to the contract or instrument and is not 
                unique to any of the parties' circumstances.
            ``(4) Treatment of exchanges.--
                    ``(A) In general.--An exchange shall be treated as 
                the sale of the property transferred and a purchase of 
                the property received by each party to the exchange.
                    ``(B) Certain deemed exchanges.--In the case of a 
                distribution treated as an exchange for stock under 
                section 302 or 331, the corporation making such 
                distribution shall be treated as having purchased such 
                stock for purposes of this section.
    ``(f) Exceptions.--
            ``(1) Exception for initial issues.--No tax shall be 
        imposed under subsection (a) on any covered transaction with 
        respect to the initial issuance of any security described in 
        subparagraph (A), (B), or (C) of subsection (e)(1).
            ``(2) Exception for certain traded short-term 
        indebtedness.--A note, bond, debenture, or other evidence of 
        indebtedness which--
                    ``(A) is traded on a trading facility located in 
                the United States, and
                    ``(B) has a fixed maturity of not more than 60 
                days, shall not be treated as described in subsection 
                (e)(1)(C).
            ``(3) Exception for securities lending arrangements.--No 
        tax shall be imposed under subsection (a) on any covered 
        transaction with respect to which gain or loss is not 
        recognized by reason of section 1058.
            ``(4) Exception for interests in mutual funds.--No tax 
        shall be imposed under subsection (a) with respect to the 
        purchase or sale of any interest in a regulated investment 
        company (as defined in section 851).
    ``(g) By Whom Paid.--
            ``(1) In general.--The tax imposed by this section shall be 
        paid by--
                    ``(A) in the case of a transaction which occurs or 
                is cleared on a facility located in the United States, 
                such facility, and
                    ``(B) in the case of a purchase not described in 
                subparagraph (A) which is executed by a broker (as 
                defined in section 6045(c)(1)), the broker.
            ``(2) Special rules for direct, etc., transactions.--In the 
        case of any transaction to which paragraph (1) does not apply, 
        the tax imposed by this section shall be paid by--
                    ``(A) in the case of a transaction described in 
                subsection (d)(1)--
                            ``(i) the purchaser if the purchaser is a 
                        United States person, and
                            ``(ii) the seller if the purchaser is not a 
                        United States person, and
                    ``(B) in the case of a transaction described in 
                subsection (d)(2)--
                            ``(i) the payor if the payor is a United 
                        States person, and
                            ``(ii) the payee if the payor is not a 
                        United States person.
    ``(h) Certain Payments Treated as Separate Transactions.--Except as 
otherwise provided by the Secretary, any payment with respect to a 
security described in subparagraph (D), (E), or (F) of subsection 
(e)(1) shall be treated as a separate transaction for purposes of this 
section, including--
            ``(1) any net initial payment, net final or terminating 
        payment, or net periodical payment with respect to a notional 
        principal contract (or similar financial instrument),
            ``(2) any payment with respect to any forward contract (or 
        similar financial instrument), and
            ``(3) any premium paid with respect to any option (or 
        similar financial instrument).
    ``(i) Administration.--The Secretary shall carry out this section 
in consultation with the Securities and Exchange Commission and the 
Commodity Futures Trading Commission.
    ``(j) Guidance; Regulations.--The Secretary shall--
            ``(1) provide guidance regarding such information reporting 
        concerning covered transactions as the Secretary deems 
        appropriate, including reporting by the payor of the tax in 
        cases where the payor is not the purchaser, and
            ``(2) prescribe such regulations as are necessary or 
        appropriate to prevent avoidance of the purposes of this 
        section, including the use of non-United States persons in such 
        transactions.
    ``(k) Whistleblowers.--See section 7623 for provisions relating to 
whistleblowers.''.
    (b) Penalty for Failure To Include Covered Transaction Information 
With Return.--Part I of subchapter B of chapter 68 of the Internal 
Revenue Code of 1986 is amended by inserting after section 6707A the 
following new section:

``SEC. 6707B. PENALTY FOR FAILURE TO INCLUDE COVERED TRANSACTION 
              INFORMATION WITH RETURN.

    ``(a) Imposition of Penalty.--Any person who fails to include on 
any return or statement any information with respect to a covered 
transaction which is required pursuant to section 4475(j)(1) to be 
included with such return or statement shall pay a penalty in the 
amount determined under subsection (b).
    ``(b) Amount of Penalty.--Except as otherwise provided in this 
subsection, the amount of the penalty under subsection (a) with respect 
to any covered transaction shall be determined by the Secretary.
    ``(c) Covered Transaction.--For purposes of this section, the term 
`covered transaction' has the meaning given such term by section 
4475(d).
    ``(d) Authority To Rescind Penalty.--
            ``(1) In general.--The Commissioner of Internal Revenue may 
        rescind all or any portion of any penalty imposed by this 
        section with respect to any violation if rescinding the penalty 
        would promote compliance with the requirements of this title 
        and effective tax administration.
            ``(2) No judicial appeal.--Notwithstanding any other 
        provision of law, any determination under this subsection may 
        not be reviewed in any judicial proceeding.
            ``(3) Records.--If a penalty is rescinded under paragraph 
        (1), the Commissioner shall place in the file in the Office of 
        the Commissioner the opinion of the Commissioner with respect 
        to the determination, including--
                    ``(A) a statement of the facts and circumstances 
                relating to the violation,
                    ``(B) the reasons for the rescission, and
                    ``(C) the amount of the penalty rescinded.
    ``(e) Coordination With Other Penalties.--The penalty imposed by 
this section shall be in addition to any other penalty imposed by this 
title.''.
    (c) Clerical Amendments.--
            (1) The table of sections for part I of subchapter B of 
        chapter 68 of such Code is amended by inserting after the item 
        relating to section 6707A the following new item:

``Sec. 6707B. Penalty for failure to include covered transaction 
                            information with return.''.
            (2) The table of subchapters for chapter 36 of the Internal 
        Revenue Code of 1986 is amended by inserting after the item 
        relating to subchapter B the following new item:

           ``subchapter c--tax on securities transactions''.

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