[Congressional Record Volume 144, Number 142 (Saturday, October 10, 1998)]
[Senate]
[Pages S12341-S12343]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOMENICI:
  S. 2624. A bill to establish a program for training residents of low-
income rural areas for, and employing the residents in, new 
telecommunications industry jobs located in the rural areas, and for 
other purposes; to the Committee on Labor and Human Resources.


    The Rural Employment in Telecommunications Industry Act of 1998

  Mr. DOMENICI. Mr. President, today, with great pleasure, I introduce 
``The Rural Employment in Telecommunications Industry Act of 1998.''
  The introduction of this Bill marks a historic opportunity for rural 
communities to create jobs within the telecommunications industry. The 
Bill establishes a program to train residents of low income rural areas 
for employment in telecommunications industry jobs located in those 
same rural areas.
  As many of my colleagues know, I have an initiative called ``rural 
payday'' and I believe this Bill is yet another step in creating jobs 
for our rural areas. All too often a rural area is characterized by a 
high number of low income residents and a high unemployment rate.
  Moreover, our rural areas are often dependent upon a small number of 
employers or a single industry for employment opportunities. 
Consequently, when there is a plant closing or a downturn in the 
economy or a slowdown in the area's industry the already present 
problems are only compounded. Mr. President, I would like to take a 
moment and talk about New Mexico.
  While New Mexico may be the 5th largest state by size with its 
beautiful mountains, desert, and Great Plains and vibrant cities such 
as Albuquerque, Santa Fe, and Las Cruces it is also a very rural state. 
The Northwest and Southeast portions of the state are currently 
experiencing difficulties as a result of the downturn in the oil and 
gas industry. Additionally, the community of Roswell has been dealt a 
blow with the closing of the Levi Straus manufacturing plant.
  As I stated before, rural areas that simply do not have the resources 
of more metropolitan areas can be simply devastated by a single event 
or downturn in the economy. And that Mr. President is why I am 
introducing ``The Rural Employment in Telecommunications Industry Act 
of 1998.''
  The Bill will allow the Secretary of Labor to establish a program to 
promote rural employment in the telecommunications industry by 
providing grants to states with low income rural areas. The program 
will be a win win proposition for all involved because employers 
choosing to participate in the project by bringing jobs to the rural 
area will be assured of a highly skilled workforce.
  The program will provide residents with intensive services to train 
them for the new jobs in the telecommunications industry. The intensive 
services will include customized training and appropriate remedial 
training, support services and placement of the individual in one the 
new jobs created by the program.
  And that is what this bill is about, providing people with the tools 
needed to succeed. With these steps we are embarking on the road of 
providing our rural areas throughout our nation with a vehicle to 
create jobs. We are creating opportunities and an environment where our 
citizens can succeed and our communities can be vibrant.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2684

       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 Employment in 
     Telecommunications Industry Act of 1998.''

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Dislocated worker; low-income individual.--The terms 
     ``dislocated worker'' and ``low-income individual'' have the 
     meanings given the terms in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801).
       (2) Low-income rural area.--The term ``low-income rural 
     area'' means a county that--
       (A) has a 1996 population of not less than 60,000 and not 
     more than 105,000 persons;
       (B) contains a municipality with a 1996 population of not 
     less than 35,000 and not more than 50,000 persons;
       (C) has a land area of not less than 5,500 and not more 
     than 6,100 square miles;
       (D) has a population density of not less than 10 and not 
     more than 20 persons per square mile;
       (E) has a 1996 per capita income that is--
       (i) not less than $16,000 and not more than $16,500; and
       (ii) not less than 86 and not more than 88 percent of the 
     statewide per capita income for the State in which the county 
     is located; or
       (F) is a county no part of which is--
       (i) within an area designated as a standard metropolitan 
     statistical area by the Director of the Office of Management 
     and Budget; or
       (ii) within an area designated as a metropolitan 
     statistical area by the Director of the Office of Management 
     and Budget; or
       (G)(i) is experiencing a significant contraction in the oil 
     and natural gas exploration and development industry;
       (ii) experienced a plant closing within 1 year before the 
     date of enactment of this Act that significantly impacted the 
     county; or
       (iii) is in close proximity to an Indian reservation, as 
     determined by the Bureau of Indian Affairs.
       (3) Intensive services.--The term ``intensive services'' 
     means services described in section 134(d)(3) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2864(d)(3)).

[[Page S12342]]

       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
       (5) State.--The term ``State'' means 1 of the several 
     States.

     SEC. 3. RURAL EMPLOYMENT IN THE TELECOMMUNICATIONS INDUSTRY 
                   PROGRAM.

       (a) In General.--The Secretary shall establish a program to 
     promote rural employment in the telecommunications industry. 
     In carrying out the program, the Secretary shall make grants 
     to States for projects described in subsection (b).
       (b) Use of Funds.--A State that receives a grant under 
     subsection (a) shall use the funds made available through the 
     grant to carry out a State telecommunications employment and 
     training project. In carrying out the project, the State 
     shall--
       (1) train eligible individuals for new telecommunications 
     industry jobs that will be located in low-income rural areas 
     pursuant to arrangements with employers participating in the 
     project, including ensuring that individuals receive--
       (A) intensive services;
       (B) customized training and appropriate remedial training 
     described in paragraphs (2) and (3) of section 4; and
       (C) appropriate supportive services; and
       (2) arrange for the employment of the individuals in the 
     telecommunications industry jobs.
       (c) Eligible Participants.--To be eligible to participate 
     in a project described in subsection (a), an individual shall 
     be--
       (1) a resident of a low-income rural area;
       (2)(A) a low-income individual;
       (B) a dislocated worker from the oil and natural gas 
     exploration and development industry;
       (C) an out-of-school youth;
       (D) an individual with a disability, as defined in section 
     101 of the Workforce Investment Act of 1998;
       (E) an individual who is receiving, or who has received 
     within the past year, assistance under the State temporary 
     assistance for needy families program established under part 
     A of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) or other public assistance;
       (F) a veteran, as defined in section 101 of the Workforce 
     Investment Act of 1998;
       (G) a displaced homemaker, as defined in section 101 of the 
     Workforce Investment Act of 1998;
       (H) an older individual, as defined in section 101 of the 
     Workforce Investment Act of 1998;
       (I) a homeless individual;
       (J) an individual eligible to participate in activities 
     carried out under section 166 of the Workforce Investment Act 
     of 1998;
       (K) an individual eligible to participate in employment and 
     training activities under section 134 of the Workforce 
     Investment Act of 1998;
       (L) a long-term unemployed individual; or
       (M) an individual with multiple barriers to employment; and
       (3) an individual who has been assessed by the entity 
     carrying out the project and determined to need intensive 
     services.
       (d) Limitation.--The Secretary shall make the grants to not 
     more than 3 States.

     SEC. 4. APPLICATION AND STATE PLAN.

       (a) Contents.--To be eligible to receive a grant under this 
     Act, a State shall submit an application to the Secretary of 
     Labor at such time, in such manner, and containing such 
     information as the Secretary may require, including a State 
     plan that includes--
       (1) information demonstrating how the project will train 
     and employ eligible individuals, including individuals 
     described in subparagraphs (C) through (M) of section 
     3(c)(2);
       (2) an assurance that the project will include a customized 
     training program for the customer service and supervisory 
     competencies needed in the telecommunications industry jobs 
     to be located in the low-income rural areas served;
       (3) an assurance that the project will include appropriate 
     remedial training in such areas as reading, writing, math, 
     and English as a second language for eligible individuals who 
     the entity carrying out the project assesses and determines 
     need such training;
       (4) includes information describing linkages, including 
     linkages relating to providing supportive services for 
     participants in and graduates of the project, between--
       (A) the entity carrying out the project; and
       (B) one-stop operators (as defined in section 101 of the 
     Workforce Investment Act of 1998), one-stop partners (as 
     defined in section 101 of the Workforce Investment Act of 
     1998), State workforce investment boards established under 
     section 111 of such Act, and local workforce investment 
     boards established under section 117 of such Act;
       (5) information identifying certification criteria for 
     individuals who successfully complete the training;
       (6) an assurance that employers participating in the 
     project will make available contributions to the costs of 
     assessing and training participants in the project including 
     those participants who are not eligible individuals described 
     in subparagraph (c) for the new telecommunications jobs in an 
     amount equal to not less than $1 for every $1 of Federal 
     funds provided under the grant;
       (7)(A) an assurance that the project will include an 
     appropriate performance assessment program that will 
     measure--
       (i) the rate of completion of the training by participants 
     in the training;
       (ii) the percentage of the participants who obtain 
     unsubsidized employment;
       (iii) the wages of the participants at placement in the 
     employment; and
       (iv) the percentage of the participants retained in the 
     employment after 6 months of employment; and
       (B) an assurance that the entity carrying out the project 
     will annually submit to the Secretary the results of the 
     performance assessment program; and
       (8)(A) information explaining how the activities carried 
     out through the project are linked to State economic 
     development activities; and
       (B) information describing commitments from private sector 
     employers to locate new telecommunications jobs and 
     facilities within the low-income rural areas to be served, 
     including commitments to provide any needed upgrade in the 
     telecommunications infrastructure.
       (b) Acceptance of Applications.--The Secretary shall accept 
     applications submitted under subsection (a) not later than 90 
     days after the date of enactment of this Act.
       (c) Evaluation of Applications.--The Secretary shall 
     evaluate, and approve or reject, each application submitted 
     under subsection (a) that meets the criteria described in 
     subsections (a) and (b) not later than 60 days after 
     submission of the application.
       (d) Priority.--In determining which States receive grants 
     under subsection (a), the Secretary will give priority to a 
     State submitting a State plan describing a project that--
       (1) will serve an area of high unemployment;
       (2) will serve an area with a significant bilingual 
     population;
       (3) will serve an area with a significant minority 
     population, including Native Americans;
       (4) will serve an area with a high percentage of youth who 
     have failed to complete secondary school;
       (5) will serve an area significantly impacted by the 
     contraction of the oil and natural gas exploration and 
     development industry;
       (6) will serve an area significantly impacted by recent 
     plant closings; or
       (7) is designed to create 1,000 or more new jobs within 2 
     years of the commencement of the training.

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out this Act for fiscal years 1999 through 
     2003.
  In the Record of October 9, 1998, on page S12187 the following 
statement of Mr. Kerrey to accompany his introduced bill. S. 2613, was 
incorrectly attributed to Mr. Kerrey. The permanent Record will be 
corrected to reflect the following:
      By Mr. KERREY:
  S. 2613. A bill to accelerate the percentage of health insurance 
costs deductible by self-employed individuals through the use of 
revenues resulting from an estate tax technical correction; to the 
Committee on Finance.


                 health care deductibility legislation

  Mr. KERREY. Mr. President, I have a very simple proposition for the 
Senate. Let's close an accidental tax loophole for the heirs of people 
who leave estates worth more than $17 million and use the savings to 
help self-employed Americans--like the thousands of entrepreneurs on 
Nebraska's farms and ranches--afford the soaring cost of health care.
  Today I am submitting legislation to accomplish that purpose.
  The facts are very simple. Prior to 1997, when we passed the 1997 
Balanced Budget Agreement, the first $600,000 of an estate was excluded 
from taxes. The old law gradually phased out this exclusion once an 
estate reached $17 million. The 1997 Act increases the value of an 
estate not subject to taxes. But a drafting error in the 1997 Balanced 
Budget Agreement failed to include the accompanying phase out of the 
exclusion on estates over $17 million.
  Clearly this error needs to be fixed. Letting this mistake stand 
uncorrected will cost the American taxpayers nearly $900 million over 
the next ten years. To give you an idea of how much this provision does 
to benefit the few, consider that in 1995, the Internal Revenue Service 
estimates that just 300 tax returns were filed on estates over $20 
million.
  Congress had the opportunity to correct this error during 
consideration of the IRS Reform bill this year. Regrettably, the 
objections of a few to making this right overcame the support of the 
many for doing so.
  Meanwhile, Mr. President, self-employed Americans are struggling to 
cope with the rising cost of health insurance, which they--unlike 
Americans employed by others--cannot fully deduct from their taxable 
income. The face of their struggle is most evident on farms and 
ranches. In Nebraska, producers are facing plunging commodity prices at 
the same time they face soaring costs of living, especially for

[[Page S12343]]

health insurance. Today they can deduct 40 percent of the cost of their 
insurance. Under current law, they cannot fully deduct that cost until 
2007.
  So, my proposal is simple. Let's close the loophole that everyone 
admits was an accident, and use that money to accelerate the full 
deductibility of health insurance for the self-employed. It's a clear 
choice between a loophole that nobody wanted to exist and entrepreneurs 
who--especially those on our farms and ranches--may not exist much 
longer if we don't get them some help.
  While I recognize time is short for passing this bill this year, I 
urge my colleagues to join me in supporting this legislation and in 
pursuing this goal next year.

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