[Congressional Record Volume 147, Number 26 (Thursday, March 1, 2001)]
[Senate]
[Pages S1761-S1768]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. CLINTON (for herself, Ms. Snowe, Mr. Baucus, Mr. 
        Bingaman, Mrs. Boxer, Mr. Corzine, Mr. Dayton, Mr. Dodd, Mr. 
        Kennedy, Mr. Lieberman, Ms. Mikulski, Mr. Rockefeller, and Mr. 
        Schumer):
  S. 432. A bill to provide for business incubator activities, and for 
other purposes; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mrs. CLINTON. Mr. President, I rise today to talk about bringing 
development and good jobs to upstate New York and other regions of our 
country that have not fully participated in our nation's economic 
growth.
  As I travel across the state and listen to the struggles of small 
business owners and workers, I'm often reminded of my father, who ran a 
small business and worked hard every day to provide for our family. I 
think about people like him who live in Plattsburgh and Buffalo, 
Rochester, Syracuse, Binghamton, Oneonta and every town and village in 
between. Most importantly, I think that--with the right ideas and a lot 
of hard work--we can create opportunities that will revitalize New 
York's upstate economy, as well as in places like these all across our 
country.
  Now as we all know, a historic shift has taken place in our economy 
and, to succeed in the twenty first century new economy, businesses 
have to be innovative, creative and flexible. Workers have to have 
better education and training; and community leaders have to bring all 
sectors of our communities together to make their hometowns more 
hospitable to high tech industries.
  Many parts of upstate New York have not been able to fully enjoy the 
fruits of the new knowledge based economy. Too many of our finest young 
people leave the state for better jobs elsewhere. Two summers ago, I 
talked to an upstate New York professor who told me what he thought was 
the biggest barrier to economic progress in the region: poor internet 
access. He pointed out that just as canals and railroad lines had made 
upstate, western and central New York the hub of the industrial economy 
in the 19th and 20th centuries, the region's shortage of high speed 
internet lines would hold us back in the 21st Century.
  Studies have shown, for example, that New York lags behind many 
states when it comes to the internet connections that are essential to 
commerce and communications in this new economy. But with leadership, 
and through partnerships, we can meet these challenges. All of us who 
care about the towns and villages in upstate New York and across our 
country have an obligation to help. That is why I am very proud today 
to introduce a package of legislation that is designed to bring new 
jobs to New York and to America.
  This legislation is the result of a lot of conversations, and 
listening, and hard work by many people. These seven bills will help 
bring all of New York online and into the new economy by promoting 
entrepreneurship and innovation, and by knocking down some of the 
stubborn barriers to economic progress.

[[Page S1762]]

  Just in the past three weeks, I have been in Rochester, and Rome and 
Watertown--Buffalo, and Niagara Falls meeting with business and labor 
leaders, academic, religious and civic leaders as well as citizens from 
all walks of life. I've also been meeting and talking with many of my 
Republican and Democratic colleagues here in the Congress--talking 
about the budget, and talking about the economies of New York and the 
rest of our nation.
  I have found that this legislation I propose today reflects the views 
and values, not only of many New Yorkers, but also a number of my 
colleagues here in the Senate. We agree that we have to clear away some 
of the major obstacles to economic growth and that we must invest in 
the skills of our country's greatest resources--our people.
  After all, upstate New York is the region where America's innovators, 
businesses and workers spun Thomas Edison's first light bulb, made 
cameras widely available to all Americans, created the nation's first 
business incubator and the pacemaker. Now, with a proud place in the 
economic history of our country, upstate New York deserves its place in 
the economic future as well. My legislation is designed to help bring 
all of New York to the forefront of the 21st century economy.
  Specifically, I propose the creation of new technology bonds. Using 
federal tax credits, states and local governments will be able to issue 
such bonds to help local governments invest in the high-speed data 
lines they need to attract cutting edge businesses.
  I propose creating new incentives to link industrial parks and small 
business incubators to the Internet--and to bring access to high-speed 
internet connections called broadband. Too many families and businesses 
still have to dial long distance to get on the Internet. That's why my 
plan also includes a $100 million initiative to help businesses bring 
broadband to rural and underserved communities.
  I also support research into the next generation of broadband 
technologies that could make access to the Internet even more cost-
effective. We have to help small businesses make the most of the new 
technologies to maximize profits and productivity. Too many firms still 
do not know where to begin when it comes to bringing their businesses 
online. Large businesses, we know, can spend millions on high-priced 
consultants to find out which computer and software systems to buy so 
they can best use the new technologies. But small, and even medium size 
businesses, just can't afford to do that.
  So, as part of my package of incentives, I am introducing what I call 
a Technology Extension Program to help small and medium business 
owners. For years, the federal government has provided farmers advice 
and expertise through the Cooperative Extension system. More recently, 
the Department of Commerce has successfully helped small manufacturers 
with new technologies through the Manufacturing Extension Program. I 
think we can build on the successes of these programs and help small 
and medium business owners in the same way, creating partnerships with 
universities and community colleges to transform their innovations into 
jobs for more and more people.
  New York is also a state blessed with some of the finest colleges and 
research institutions in the world. Yet, we haven't been able to 
transform a lot of those discoveries into commercial ventures near 
where they have been made. That's why my plan increases support for 
business incubators that can cut the time it takes for a breakthrough 
on the laboratory bench to make it to the factory and sales floor.
  Of course one of the most important parts of this legislation focuses 
on investing in the skills of our people. We can create all the high 
tech jobs we need from, you know, Plattsburg to Reno--but if they don't 
have people to fill them it's not going to mean anything, as I know 
that the President understands. That's why I'll fight to increase 
America's investment in the Regional Skills Alliances that bring 
businesses, universities, and community colleges together to make sure 
workers have the training they need in the modern workplace.
  I know that we have to support and encourage small businesses to 
bring jobs to places like upstate New York. My legislation will create 
a new Small Business Jobs Tax Credit to allow small firms in 
underserved communities across the country eligible because of 
population loss and low job growth--to claim a $3,000 tax credit for 
every employee they hire.
  Mr. President, during my campaign I promised that my first 
legislation would focus on promoting economic growth in upstate New 
York. That is why I am particularly pleased to be here in fulfillment 
of that pledge.
  But I see my plan as a part of a larger partnership to spur job 
creation across our country, where good people and their communities 
are in need of help. According to the latest Labor Department 
statistics New York, for example, as a whole enjoyed a 2.3 percent job 
growth rate last year. But upstate New York's job growth rate was about 
half of that at 1.2% and below the national average of 2.1 percent. Now 
behind those numbers are the lives and livelihoods of millions of 
people, and it is for those people that this legislation is being 
introduced. No parent should have to see a child leave his or her 
hometown simply because a good job can't be found.
  My co-sponsors and I know that the fight for new jobs for New York 
and America is a long and difficult one. We do not expect everything in 
this plan to pass in one year alone, or even in the exact form in which 
it is introduced. And standing alone, no single plan or Senator will be 
able to get the job done. But my colleagues and I understand we need a 
long-term partnership among people in government at all levels and with 
the private sector, business, labor, schools universities and others.
  That is why I also support S. 41 introduced by Senators Hatch and 
Baucus, and supported by many Democrats and Republicans to make the 
research and development tax credit permanent and to promote 
entrepreneurship and innovation. It's why I think we have to continue 
to tackle other stubborn barriers to economic growth like high 
utilities costs, high taxes and inadequate transportation and poor 
infrastructure. And of course, I can't talk about upstate New York 
without mentioning the spectacular geography and cultural heritage that 
is not only a source of pride, but also as a valuable economic 
resource.
  Mr. President, I would like to thank my colleagues, representing both 
parties, who have come together to join and sponsor one or more of my 
bills today. I look forward to talking to more members of this chamber 
and the other body in the days and weeks ahead. I believe if we take 
good ideas and through hard work make them real, we can revitalize New 
York's upstate economy and also give hope to the hardworking, deserving 
families of communities across our country. No one should have to leave 
their hometown, their families, and their roots to find a good job in 
America.
  I ask unanimous consent that text of the bills, the summary of the 
bills, and articles relevant to the bills be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 426

       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 ``Technology Bond Initiative 
     of 2001''.

     SEC. FINDINGS.

       Congress finds the following:
       (1) Access to high-speed Internet is as important to 21st 
     Century businesses as access to the railroads and interstate 
     highways was to businesses of the last century.
       (2) Up to one-third of the United States population lacks 
     access to high-speed Internet.
       (3) Companies without access to high-speed Internet are 
     unable to meet their market potential, just as a community 
     cannot prosper if it doesn't have high quality roads and 
     bridges.
       (4) Technology bonds would provide incentives to State and 
     local governments to partner with the private sector to 
     expand broadband deployment in their communities, especially 
     underserved urban and rural areas.

     SEC. 2. CREDIT TO HOLDERS OF QUALIFIED TECHNOLOGY BONDS.

       (a) In General.--Part IV of subchapter A of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to credits 
     against tax) is amended by adding at the end the following 
     new subpart:

[[Page S1763]]

 ``Subpart H--Nonrefundable Credit for Holders of Qualified Technology 
                                 Bonds

``Sec. 54. Credit to holders of qualified technology bonds.

     ``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED TECHNOLOGY BONDS

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a qualified technology bond on a credit allowance date 
     of such bond which occurs during the taxable year, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for such taxable year the amount determined under 
     subsection (b).
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any qualified 
     technology bond is the amount equal to the product of--
       ``(A) the credit rate determined by the Secretary under 
     paragraph (2) for the month in which such bond was issued, 
     multiplied by
       ``(B) the face amount of the bond held by the taxpayer on 
     the credit allowance date.
       ``(2) Determination.--During each calendar month, the 
     Secretary shall determine a credit rate which shall apply to 
     bonds issued during the following calendar month. The credit 
     rate for any month is the percentage which the Secretary 
     estimates will permit the issuance of qualified technology 
     bonds without discount and without interest cost to the 
     issuer.
       ``(c) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for any taxable year shall not 
     exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(2) the sum of the credits allowable under this part 
     (other than this subpart and subpart C).
       ``(d) Qualified Technology Bond.--For purposes of this 
     part--
       ``(1) In general.--The term `qualified technology bond' 
     means any bond issued as part of an issue if--
       ``(A) 95 percent or more of the proceeds of such issue are 
     to be used for any or a series of qualified projects,
       ``(B) the bond is issued by a State or local government 
     within the jurisdiction of which such project is located.
       ``(C) the issuer designates such bond for purposes of this 
     section.
       ``(D) certifies that it has obtained the written approval 
     of the Secretary of Commerce for such project, and
       ``(E) the term of each bond which is part of such issue 
     does not exceed 15 years.
       ``(2) Qualified project.--
       ``(A) In general.--The term `qualified project' means a 
     project--
       ``(i) to expand broadband telecommunications services in an 
     area within the jurisdiction of a State or local government,
       ``(ii) which is nominated by such State or local government 
     for designation as a qualified project, and
       ``(iii) which the Secretary of Commerce, after consultation 
     with the Secretary of Housing and Urban Development 
     designates as a qualified project or a series of qualified 
     projects.
       ``(B) Designation preferences.--With respect to 
     designations under this section, preferences shall be given 
     to--
       ``(i) nominations of projects involving underserved urban 
     or rural areas lacking access to high-speed Internet 
     connections, and
       ``(ii) nominations reflecting partnerships and 
     comprehensive planning between State and local governments 
     and the private sector.
       ``(e) Limitations on Amount of Bonds Designated.--
       ``(1) National limitation.--There is a national technology 
     bond limitation for each calendar year. Such limitation is 
     $100,000,000 for 2002, 2003, 2004, 2005, and 2006, and, 
     except as provided in paragraph (4), zero thereafter.
       ``(2) Allocation of limitation.--The national technology 
     bond limitation for a calendar year shall be allocated by the 
     Secretary among the qualified projects designated for such 
     year.
       ``(3) Designation subject to limitation amount.--The 
     maximum aggregate face amount of bonds issued during any 
     calendar year which may be designated under subsection (d)(1) 
     with respect to any qualified project shall not exceed the 
     limitation amount allocated to such project under paragraph 
     (2) for such calendar year.
       ``(4) Carryover of unused limitation.--If for any calendar 
     year--
       ``(A) the national technology limitation amount, exceeds
       ``(B) the amount of bonds issued during such year which are 
     designated under subsection (d)(1) with respect to qualified 
     projects, the national technology limitation amount for the 
     following calendar year shall be increased by the amount of 
     such excess.
       ``(f) Other Definitions.--For purposes of this subpart--
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) Credit allowance date.--The term `credit allowance 
     date' means, with respect to any issue, the last day of the 
     1-year period beginning on the date of issuance of such issue 
     and the last day of each successive 1-year period thereafter.
       ``(3) State.--The term `State' means the several States and 
     the District of Columbia.
       ``(g) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(h) Other Special Rules.--
       ``(1) Paratnerhsip; s corporation; and other pass-thru 
     entities.--Under regulations prescribed by the Secretary, in 
     the case of a partnership, trust, S corporation, or other 
     pass-thru entity, rules similar to the rules of section 41(g) 
     shall apply with respect to the credit allowable under 
     subsection (a).
       ``(2) Bonds held by regulated investment companies.--If any 
     qualified technology bond is held by a regulated investment 
     company, the credit determined under subsection (a) shall be 
     allowed to shareholders of such company under procedures 
     prescribed by the Secretary.
       ``(3) Treatment for estimated tax purposes.--Solely for 
     purposes of sections 6654 and 6655, the credit allowed by 
     this section to a taxpayer by reason of holding a qualified 
     technology bond on a credit allowance date shall be treated 
     as if it were a payment of estimated tax made by the taxpayer 
     on such date.
       ``(4) Reporting.--Issuers of qualified technology bonds 
     shall submit reports similar to the reports required under 
     section 149(e).''.
       (b) Reporting.--Subsection (d) of section 6049 of the 
     Internal Revenue Code of 1986 (relating to returns regarding 
     payments of interest) is amended by adding at the end the 
     following new paragraph:
       ``(8) Reporting of credit on qualified technology bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54(g) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54(f)(2)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A) of this paragraph, subsection 
     (b)(4) of this section shall be applied without regard to 
     subparagraphs (A), (H), (I), (J), (K), and (L)(i).
       ``(C) Regulatory authority.--the Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (c) Clerical Amendments.--
       (1) The table of subparts for part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new item:

``Subpart H. Nonrefundable Credit for Holders of Qualified Technology 
              Bonds.''

       (2) Section 6401(b)(1) of such Code is amended by striking 
     ``and G'' and inserting ``G, and H''.
       (d) Effective Date.--the amendments made by this section 
     shall apply to obligations issued after December 31, 2001.
                                  ____


                                 S. 427

       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 ``Small Business Jobs Tax 
     Credit Act of 2001''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) In many parts of the United States, segments of large 
     cities, smaller cities, and rural areas are experiencing 
     population loss and low job growth that hurt the surrounding 
     communities.
       (2) In areas hurt by low job growth, people are forced to 
     leave the communities they have lived in their whole life to 
     secure a job.
       (3) A small business tax credit to promote jobs in areas 
     suffering from low job growth and population loss would spur 
     economic growth and would provide incentives for businesses 
     to take advantage of an often underutilized, well-educated 
     workforce.
       (4) By promoting economic growth, such a tax credit would 
     revitalize these areas that are less likely to receive other 
     Federal investments.

     SEC. 3. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.

       (a) In General.--Section 51(d)(1) of the Internal Revenue 
     Code of 1986 (relating to members of targeted groups) is 
     amended by striking ``or'' at the end of subparagraph (G), by 
     striking the period at the end of subparagraph (H) and 
     inserting ``, or'', and by adding at the end the following:
       ``(I) a qualified small business employee.''.
       (b) Qualified Small Business Employee.--Section 51(d) of 
     the Internal Revenue Code of 1986 is amended by redesignating 
     paragraphs (10) through (12) as paragraphs (11) through (13), 
     respectively, and by inserting after paragraph (9) the 
     following:
       ``(10) Qualified small business employee.--
       ``(A) In general.--The term `qualified small business 
     employee' means any individual--
       ``(i) hired by a qualified small business located in a 
     development zone, or
       ``(ii) hired by a qualified small business and who is 
     certified by the designated local agency as residing in such 
     a development zone.
       ``(B) Qualified small business.--The term `qualified small 
     business' has the meaning given the term `small employer' by 
     section 4980D(d)(2).
       ``(C) Development zone.--For purposes of this section--
       ``(i) In general.--The term `development zone' means any 
     area--

[[Page S1764]]

       ``(I) which is nominated under the procedures defined in 
     sections 1400E(a)(1)(A) and 1400E(a)(4) for renewal 
     communities;
       ``(II) which the Secretary of Housing and Urban Development 
     designates as a development zone, after consultation with the 
     Secretary of Commerce;
       ``(III) which has a population of not less than 5,000 and 
     not more than 150,000;
       ``(IV) which has a poverty rate not less than 20 percent 
     (within the meaning of section 1400E(c)(3)(C));
       ``(V) which has an average annual rate of job growth of 
     less than 2 percent during any 3 years of the preceding 5-
     year period; and
       ``(VI) which, during the period beginning January 1, 1990 
     and ending with the date of the enactment of this Act, has a 
     net out-migration of inhabitants, or other population loss, 
     from the area of at least 2 percent of the population of the 
     area during such period.

       ``(ii) Number of designations.--The Secretary of Housing 
     and Urban Development may not designate more than 100 
     development zones.
       ``(D) Special rules for determining amount of credit.--For 
     purposes of applying this subpart to wages paid or incurred 
     to any qualified small business employee--
       ``(i) subsection (a) shall be applied by substituting ``20 
     percent of the qualified first, second, third, fourth, or 
     fifth year wages'' for ``40 percent of the qualified first 
     year wages'', and
       ``(ii) in lieu of paragraphs (2) and (3) of subsection (b), 
     the following definitions and special rule shall apply:

       ``(I) Qualified first-year wages.--The term `qualified 
     first-year wages' means, with respect to any individual, 
     qualified wages attributable to service rendered during the 
     1-year period beginning with the day the individual begins 
     work for the employer.
       ``(II) Qualified second-year wages.--The term `qualified 
     second-year wages' means, with respect to any individual, 
     qualified wages attributable to service rendered during the 
     1-year period beginning on the day after the last day of the 
     1-year period with respect to such individual determined 
     under subclause (I).
       ``(III) Qualified third-year wages.--The term `qualified 
     third-year wages' means, with respect to any individual, 
     qualified wages attributable to service rendered during the 
     1-year period beginning on the day after the last day of the 
     1-year period with respect to such individual determined 
     under subclause (II).
       ``(IV) Qualified fourth-year wages.--The term `qualified 
     fourth-year wages' means, with respect to any individual, 
     qualified wages attributable to service rendered during the 
     1-year period beginning on the day after the last day of the 
     1-year period with respect to such individual determined 
     under subclause (III).
       ``(V) Qualified fifth-year wages.--The term `qualified 
     fifth-year wages' means, with respect to any individual, 
     qualified wages attributable to service rendered during the 
     1-year period beginning on the day after the last day of the 
     1-year period with respect to such individual determined 
     under subclause (IV).
       ``(VI) Only first $15,000 of wages per year taken into 
     account.--The amount of the qualified first, second, third, 
     fourth, and fifth year wages which may be taken into account 
     with respect to any individual shall not exceed $15,000 per 
     year.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after the date of the enactment of this Act.
                                  ____


                                 S. 428

       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 ``Broadband Expansion Grant 
     Initiative of 2001''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Investing in a telecommunications infrastructure for 
     underserved rural communities will increase the potential for 
     long-term economic growth in those areas.
       (2) Currently, too many families have to make long distance 
     calls to connect to the Internet, and the deployment of 
     broadband networks would make sure that connection to the 
     Internet is more cost-effective and only a local call away.
       (3) Small businesses would benefit from access to high-
     speed Internet links that would allow them to compete on 
     national and international levels.
       (4) Broadband deployment grants and loan guarantees would 
     encourage private-sector investment in infrastructure 
     advances.

     SEC. 3. FACILITATION OF DEPLOYMENT OF BROADBAND 
                   TELECOMMUNICATIONS CAPABILITIES TO UNDERSERVED 
                   RURAL AREAS.

       (a) In General.--In order to facilitate the deployment by 
     the private sector of broadband telecommunications networks 
     and capabilities (including wireless and satellite networks 
     and capabilities) to underserved rural areas, the Secretary 
     of Commerce (in this section, referred to as the 
     ``Secretary'') may--
       (1) make grants to eligible recipients for that purpose;
       (2) guarantee loans, either whole or in part, of eligible 
     recipients the proceeds of which are to be used for that 
     purpose; or
       (3) carry out activities under both paragraphs (1) and (2).
       (b) Eligible Recipients.--For purposes of this section, an 
     eligible recipient of a grant or loan guarantee under 
     subsection (a) is any person or entity selected by the 
     Secretary in accordance with such procedures as the Secretary 
     shall establish.
       (c) Underserved Rural Areas.--The Secretary shall identify 
     the areas that constitute underserved rural areas for 
     purposes of this section.
       (d) Emphasis on Particular Capabilities.--In selecting a 
     person or entity as an eligible recipient of a grant or loan 
     guarantee under subsection (a), the Secretary shall give 
     particular emphasis to persons or entities that propose to 
     use the grant or the proceeds of the loan guaranteed, as the 
     case may be, to leverage non-Federal resources to do one or 
     more of the following:
       (1) Provide underserved rural areas with access to Internet 
     service by local telephone.
       (2) Demonstrate new models or emerging technologies to 
     bring broadband telecommunications services to underserved 
     rural areas on a cost-effective basis.
       (3) Use broadband telecommunications services to stimulate 
     economic development, such as providing connections between 
     and among industrial parks located in such areas and 
     providing high-speed telecommunications service links to 
     small business incubators.
       (e) Consultation.--The Secretary may consult with the 
     Federal Communications Commission in carrying out activities 
     under this section.
       (f) Limitation on Amount.--The amount of any grants made 
     under this section, and the cost (as defined in section 
     502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a(5)) of any loans guaranteed under this section, may not, 
     in the aggregate, exceed $100,000,000.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Department of Commerce for 
     purposes of grants and loan guarantees under this section 
     $100,000,000 for fiscal year 2002, and such sums as are 
     necessary for each fiscal year thereafter.
                                  ____


                                 S. 429

       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 ``Technology Extension Act of 
     2001''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The Federal Government developed the Agriculture 
     Extension Program, and more recently, the Manufacturing 
     Extension Program to help farmers and small manufacturers 
     gain access to the latest technologies. Today's small and 
     medium-sized businesses need a technology extension program 
     that provides access to cutting edge technology.
       (2) There is a need to create partnerships to cut the time 
     it takes for new developments in university laboratories to 
     reach the manufacturing floor, to help small and medium-sized 
     businesses transform their innovations into jobs.
       (3) There is a need to build upon the Manufacturing 
     Extension Program to encourage the adoption of advanced 
     technology.

     SEC. 3. TECHNOLOGY EXTENSION PROGRAM.

       (a) Purpose.--It is the purpose of this section--
       (1) to encourage meaningful use of the most advanced 
     available technologies by small businesses and medium-sized 
     businesses to the maximum extent possible to improve the 
     productivity of those businesses and thereby to promote 
     economic growth; and
       (2) to promote regional partnerships between educational 
     institutions and businesses to develop such technologies and 
     products in the surrounding areas.
       (b) Grant Program.--To achieve the purpose of this section, 
     the Secretary of Commerce (in this section, referred to as 
     the ``Secretary'') shall carry out a program to provide, 
     through grants, financial assistance for the establishment 
     and support of regional centers for the commercial use of 
     advanced technologies by small businesses and medium-sized 
     businesses.
       (c) Eligibility.--An entity is eligible to receive a grant 
     as a regional center under this section if the entity--
       (1) is affiliated with a United States-based institution or 
     organization that is operated on a not-for-profit basis, or 
     any combination of two or more of such institutions or 
     organizations;
       (2) offers to enter into an agreement with the Secretary to 
     function as a regional center for the commercial use of 
     advanced technologies for the purpose of this section within 
     a region determined appropriate by the Secretary; and
       (3) demonstrates that it has the capabilities necessary to 
     achieve the purpose of this section through its operations as 
     a center within that region.
       (d) Selection of Applicants.--
       (1) Competitive process.--The Secretary shall use a 
     competitive process for the awarding of grants under this 
     section and, under that process, select recipients of the 
     grants on the basis of merit, with priority given to 
     underserved areas.
       (2) Applications for grants.--The Secretary shall prescribe 
     the form and content of applications required for grants 
     under this section.
       (e) Specific Activities of Regional Centers.--A regional 
     center may use the proceeds of a grant under this section for 
     any

[[Page S1765]]

     activity that carries out the purpose of this section, 
     including such activities as the following:
       (1) Assist small businesses and medium-sized businesses to 
     address their most critical needs for the application of the 
     latest technology, improvement of infrastructure, and use of 
     best business practices.
       (2) In conjunction with institutions of higher education 
     and laboratories located in the region, transfer technologies 
     to small businesses and medium-sized businesses located in 
     such region to create jobs and increase production in 
     surrounding areas.
       (f) Addition Administrative Authorities.--
       (1) Cost-sharing.--The Secretary may require the recipient 
     of a grant to defray, out of funds available from sources 
     other than the Federal Government, a specific level of the 
     operating expenses of the regional center for which the grant 
     is made.
       (2) Additional terms and conditions.--The Secretary, in 
     awarding a grant, may impose any other terms and conditions 
     for the use of the proceeds of the grant that the Secretary 
     determines appropriate for carrying out the purpose of this 
     section and to protect the interests of the United States.
       (g) Definitions of Small Business and Medium-Sized 
     Business.--
       (1) Secretary to prescribe.--The Secretary shall prescribe 
     the definitions of the terms ``small business'' and ``medium-
     sized business'' for the purpose of this section.
       (2) Small business standards.--In defining the term ``small 
     business'', the Secretary shall apply the standards 
     applicable for the definition of the term ``small-business 
     concern'' under section 3 of the Small Business Act (15 
     U.S.C. 632).
       (h) Regulations.--The Secretary shall prescribe regulations 
     for the grant program administered under this section.
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Department of Commerce for 
     carrying out this section $125,000,000 for fiscal year 2002, 
     and such sums as are necessary for each fiscal year 
     thereafter.
                                  ____

       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 ``Broadband Rural Research 
     Investment Act of 2001''.

     SEC. 2. FINDINGS.

       Congress find the following:
       (1) The availability of broadband telecommunications 
     services in rural America is critical to economic 
     development, job creation, and new services such as distance 
     learning and telemedicine.
       (2) Existing broadband technology cannot be deployed in 
     many rural areas, either because of technical limitations, or 
     the cost of deployment relative to the available market.
       (3) Research in new broadband technology that addresses 
     these barriers could increase the availability of broadband 
     telecommunications services in rural areas.

     SEC. 3. RESEARCH ON ENHANCEMENT OF BROADBAND 
                   TELECOMMUNICATIONS SERVICES.

       (a) In General.--The Director of the National Science 
     Foundation (in this section, referred to as the ``Director'') 
     shall carry out research on the following:
       (1) Means of enhancing or facilitating the availability of 
     broadband telecommunications services in rural areas and 
     other remote areas.
       (2) Means of facilitating or enhancing access to the 
     Internet through broadband telecommunications services.
       (b) Scope of Authority.--The Director may carry out 
     research under subsection (a) within the National Science 
     Foundation or pursuant to such grants, agreements, or other 
     arrangements as the Director considers appropriate.
       (c) Results of Research.--The Director shall make available 
     to the public, in such manner as the Director considers 
     appropriate, the results of any research carried out under 
     this section.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated for the National Science Foundation for 
     purposes of activities under this section $25,000,000 for 
     fiscal year 2002, and such sums as are necessary for each 
     fiscal year thereafter.
                                  ____


                                 S. 431

       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 ``Regional Skills Alliances 
     Act of 2001''.

     SEC. 2. FINDINGS.

       (1) Many small businesses lack the financial capacity to 
     support the training of high-skilled workers.
       (2) Many high-tech companies concerned about worker 
     training consider recruiting employees from overseas because 
     a shortage of information technology workers remains a 
     significant problem.
       (3) Too many highly educated workers in underserved 
     communities do not have the specialized skills needed to meet 
     the needs of local businesses.
       (4) Regional skills alliances bring businesses and 4-year 
     colleges and universities and community colleges together to 
     help develop and implement effective programs to make sure 
     workers have the training needed to compete in the modern 
     workplace.

     SEC. 3. DEFINITION.

       In this Act, the term ``Secretary'' means the Secretary of 
     Labor.

                         TITLE I--SKILL GRANTS

     SEC. 101. AUTHORIZATION.

       (a) In General.--The Secretary, in consultation with the 
     Secretary of Commerce, shall award grants to eligible 
     entities described in subsection (b) to assist such entities 
     to improve the job skills necessary for employment in 
     specific industries.
       (b) Elgible Entities Described.--
       (1) In general.--An eligible entity described in this 
     subsection is a consortium that--
       (A) shall consist of representatives from not less than 5 
     businesses, or a lesser number of businesses if such lesser 
     number of businesses employs at least 30 percent of the 
     employees in the industry involved in the region (or a non-
     profit organization that represents such businesses);
       (B) may consist of representatives from--
       (i) labor organizations;
       (ii) State and local government; and
       (iii) educational institutions;
       (C) is established to serve one or more particular 
     industries; and
       (D) is established to serve a particular geographic region.
       (2) Majority of representatives.--A majority of the 
     representatives described in paragraph (1)(A).
       (c) Priority for Small Businesses.--In providing grants 
     under subsection (a), the Secretary shall give priority to an 
     eligible entity if a majority of representatives forming the 
     entity represent small-business concerns (as defined in 
     section 3(a) of the Small Business Act (15 U.S.C. 632(a)).
       (d) Maximum Amount of Grant.--The amount of a grant awarded 
     to an eligible entity under subsection (a) may not exceed 
     $1,000,000 for any fiscal year.

     SEC. 102. USE OF AMOUNTS.

       (a) In General.--The Secretary may not award a grant under 
     section 101 to an eligible entity unless such entity agrees 
     to use amounts received from such grant to improve the job 
     skills necessary for employment by businesses in the industry 
     with respect to which such entity was established.
       (b) Conduct of Program.--
       (1) In general.--In carrying out the program described in 
     subsection (a), the eligible entity may provide for--
       (A) an assessment of training and job skill needs for the 
     industry;
       (B) the development of a sequence of skill standards that 
     are benchmarked to advanced industry practices;
       (C) the development of curriculum and training methods, 
     including, where appropriate, e-learning or technology-based 
     training;
       (D) the purchase, lease, or receipt of donations of 
     training equipment;
       (E) the identification of training providers and the 
     development of partnerships between the industry and 
     educational institutions, including community colleges;
       (F) the development of apprenticeship programs;
       (G) the development of training programs for workers, 
     including dislocated workers;
       (H) the development of training plans for businesses; and
       (I) the development of the membership of the entity.
       (2) Additional requirement.--In carrying out the program 
     described in subsection (a), the eligible entity shall 
     provide for the development and tracking of performance 
     outcome measures for the program and the training providers 
     involved in the program.
       (c) Administrative Costs.--The eligible entity may use not 
     more than 10 percent of the amount of a grant to pay for 
     administrative costs associated with the program described in 
     subsection (a).

     SEC. 103. REQUIREMENT OF MATCHING FUNDS.

       (a) In General.--The Secretary may not award a grant under 
     section 101 to an eligible entity unless such entity agrees 
     that the entity will make available non-Federal contributions 
     toward the costs of carrying out activities under the grant 
     in an amount that is not less than $2 for each $1 of Federal 
     funds provided under the grant, of which--
       (1) $1 shall be provided by the businesses participating in 
     the entity; and
       (2) $1 shall be provided by the State or local government 
     involved.
       (b) Other Contributions.--
       (1) Equipment.--Equipment donations to facilities that are 
     not owned or operated by the members of the eligible entity 
     involved and that are shared by such members may be included 
     in determining compliance with subsection (a).
       (2) Limitation.--An eligible entity may not include in-kind 
     contributions in complying with the requirement of subsection 
     (a). The Secretary may consider such donations in ranking 
     applications.

     SEC. 104. LIMIT ON ADMINISTRATIVE EXPENSES.

       The Secretary may use not more than 5 percent of the 
     amounts made available to carry out this title to pay the 
     Federal administrative costs associated with awarding grants 
     under this title.

     SEC. 105 AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title $50,000,000 for each of the fiscal years 2002, 2003, 
     and 2004, and such sums as are necessary for each fiscal year 
     thereafter.

                       TITLE II--PLANNING GRANTS

     SEC. 201. AUTHORIZATION.

       (a) In General.--The Secretary, in consultation with the 
     Secretary of Commerce,

[[Page S1766]]

     shall award grants to States to enable such states to assist 
     businesses, organizations, and agencies described in section 
     101(b) in conducting planning to form consortia described in 
     such section.
       (b) Maximum Amount of Grant.--The amount of a grant awarded 
     to a State under subjection (a) may not exceed $500,000 for 
     any fiscal year.

     SEC. 202. APPLICATION.

       The Secretary may not award a grant under section 201 to a 
     State unless such State submits to the Secretary an 
     application at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.

     SEC. 203. REQUIREMENT OF MATCHING FUNDS.

       The Secretary may not award a grant under section 201 to a 
     State unless such State agrees that it will make available 
     non-Federal contributions toward the costs of carrying out 
     activities under this title in an amount that is not less 
     than $1 for each $1 of Federal funds provided under the 
     grant.

     SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title $5,000,000 for fiscal year 2002.
                                  ____


                                 S. 432

       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 ``Entrepreneurial Incubators 
     Development Act of 2001''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) While small businesses have been an engine of economic 
     growth over the past decade, they often lack access to the 
     technology available to larger businesses.
       (2) Business incubators have proven an effective source of 
     economic growth in the States.
       (3) Scientific discoveries need to be quickly converted 
     into job and community ventures.

     SEC. 3. GRANTS FOR SUPPORT OF BUSINESS INCUBATOR ACTIVITIES.

       (a) Purpose.--It is the purpose of this section to 
     encourage entrepreneurial creativity and risk taking through 
     the support of the furnishing of business incubator services 
     for newly established small businesses and medium-sized 
     businesses.
       (b) Grant Program.--to achieve the purpose of this section, 
     the Secretary of Commerce (in this section, referred to as 
     the ``Secretary'') shall carry out a program to provide, 
     through grants, financial assistance for the establishment 
     and support of entities that provide business incubator 
     services in support of the initiation and initial sustainment 
     of business activities by newly established small businesses 
     and medium-sized businesses.
       (c) Awards of Grants.--
       (1) Eligibility requirements.--The Secretary shall 
     prescribe the eligibility requirements for the awarding of 
     grants under this section.
       (2) Competitive selection.--The Secretary shall use a 
     competitive process for the awarding of grants under this 
     section and, under that process, select recipients of the 
     grant son the basis of merit, with priority given to 
     underserved rural and urban communities.
       (3) Applications for grants.--The Secretary shall prescribe 
     the form and content of applications required for grants 
     under this section.
       (d) Additional Administrative Authorities.--
       (1) Cost-sharing.--The Secretary may require the recipient 
     of a grant under this section to defray a specific level of 
     its operating expenses for business incubator services out of 
     funds available from sources other than the Federal 
     Government.
       (2) Additional terms and conditions.--The Secretary, in 
     awarding a grant, may impose any other terms and conditions 
     for the use of the proceeds of the grant that the Secretary 
     determines appropriate for carrying out the purpose of this 
     section and to protect the interests of the United States, 
     including the requirement that entities providing business 
     incubator services that receive a grant under this section 
     develop a plan for ultimately becoming self-sufficient.
       (e) Definitions.--
       (1) Business incubator services.--In this section, the term 
     ``business incubator services'' includes professional and 
     technical services necessary for the initiation and initial 
     sustainment of operations of a newly established business, 
     including such services as the following:
       (A) Legal services.--Legal services, including aid in 
     preparing corporate charters, partnership agreements, and 
     basic contracts.
       (B) Intellectual property services.--Services in support of 
     the protection of intellectual property through patents, 
     trademarks, or otherwise.
       (C) Technology services.--Services in support of the 
     acquisition and use of advanced technology, including the use 
     of Internet services and web-based services.
       (D) Planning.--Advice on--
       (i) strategic planning; and
       (ii) marketing, including advertising.
       (2) Small business and medium-sized business.--
       (A) Secretary to prescribe.--The Secretary shall prescribe 
     the definitions of the terms ``small business'' and ``medium-
     sized business'' for the purpose of this section.
       (B) Small business standards.--In defining the term ``small 
     business'' for the purpose of this section, the Secretary 
     shall apply the standards applicable for the definition of 
     the term ``small business concern'' under section 3 of the 
     Small Business Act (15 U.S.C. 632).
       (f) Regulations.--The Secretary shall prescribe regulations 
     for the grant program administered under this section.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Department of Commerce for 
     carrying out this section $50,000,000 for fiscal year 2002, 
     and $200,000,000 for each fiscal year thereafter.
                                  ____


      Economic Development Proposals for the New Economy--Summary

       In too many parts of America, many of our communities are 
     plagued by low job growth and economic stagnation. These 
     communities, which historically have been the backbone of our 
     nation, are deeply concerned about their economic prospects. 
     This package of incentives focuses on encouraging new 
     technology companies to move to places where they can take 
     advantage of a well-educated workforce and a higher education 
     infrastructure that is often available and underutilized.
       Technology Bonds: In order to help states and local 
     governments invest in telecommunications infrastructure, this 
     proposal invests $100 million a year in a new type of tax 
     incentive: Technology Bonds. Localities would be allowed to 
     use Technology Bonds to expand high-speed Internet access in 
     their communities. These bonds would provide a significant 
     incentive to state and local governments because they would 
     not have to pay any interest on them, and, thus, would make 
     no payments until maturity (15 years in the future). Because 
     the program directs its benefits to communities, it will 
     better ensure that higher need communities receive the 
     benefits.
       Small Business Jobs Tax Credit: This tax credit for small 
     businesses will promote jobs in smaller communities. This 
     proposal will provide a tax credit for wages, up to $3,000 
     per employee, for small businesses that locate in communities 
     that are losing population, have low job growth rates and 
     high poverty rates. Specifically, this proposal creates a 20% 
     tax credit for wages of up to $15,000 per year, which is a 
     value of up to $3,000 per employee, companies could receive 
     the credit for up to five years. This initiative will focus 
     on smaller communities by targeting communities with a 
     population over 5,000. The program would designate roughly 
     100 communities and could subsidize roughly 8,000 jobs for 
     each area.
       Broadband Expansion Grant Initiative of 2001: This proposal 
     complements Tech Bonds by creating a $100 million initiative 
     to accelerate private-sector deployment of broadband networks 
     in under-served rural communities. Right now many families 
     have to make long distances calls to connect to Internet. 
     This initiative will support $100 million in grants and loan 
     guarantees to ensure the Internet is more cost-effective and 
     only a local call away. It will connect industrial parks and 
     small business incubators with high-speed links; and 
     encourage trials of innovative deployment of broadband 
     networks to provide cost-effective access to rural areas.
       Technology Extension Act of 2001: During the early part of 
     this century, the Federal government helped farmers gain 
     access to new agricultural technologies through the 
     Agriculture Extension Program at the Department of 
     Agriculture. More recently, the Department of Commerce has 
     successfully helped small manufacturers with new technologies 
     through its Manufacturing Extension Program. Now it is time 
     to provide small and medium-sized businesses with a 
     technology extension program that provides the latest 
     technology to improve productivity and promote economic 
     growth. This initiative will build upon the Manufacturing 
     Extension Program to address critical needs in areas such as 
     technology applications, infrastructure upgrades and business 
     practices, insurance and other forms. It would also work with 
     universities and laboratories to transfer technologies to 
     small and medium-sized businesses that will help them move 
     products to markets faster. This program would be funded at 
     $25 million the first year, growing to $125 million in fiscal 
     year 2002.
       Broadband Rural Research Investment Act of 2001: This 
     proposal targets $25 million in funding for research to 
     ensure the availability of broadband in rural areas. This 
     proposal supports additional investments at the National 
     Science Foundation for research in new broadband technology 
     to increase the availability of broadband telecommunications 
     services in remote and rural areas.
       Regional Skills Alliances: Throughout the nation, high-tech 
     companies often consider recruiting employees from overseas 
     because a shortage of information technology workers remains 
     a significant problem throughout the state. Too many small 
     firms do not have the resources to train the workers they 
     need. This proposals creates Regional Skills Alliances to 
     bring businesses, schools, and community college together to 
     help create effective programs to ensure workers have the 
     training needed to compete in the new economy. Without some 
     kind of support to create alliances, small firms just don't 
     have the time or resources to collaborate with anybody on 
     training. In fact, almost all existing RSA's report that they 
     would not have been able to get off the ground without an

[[Page S1767]]

     independent, staffed entity to operate the alliance.
       Entrepreneurial Incubators: This initiative would help 
     entrepreneurs who have good ideas but cannot afford lawyers 
     and consultants to access the help they need with legal 
     complexities such as preparing corporate charters, 
     partnership agreements, contracts, patent and intellectual 
     property rules, and basic marketing strategies. This will 
     especially help areas where universities can be key 
     collaborators in entrepreneurial incubators. This proposal 
     would initially invest $50 million and up to $200 million the 
     following years, to increase business incubators nationally 
     by a third.
                                  ____


                      [From the Associated Press]

               How Does Upstate Keep Best and Brightest?

                           (By Michael Hill)

       Albany, NY.--Jaclyn Welcher's college degree turned out to 
     be a one-way ticket out of upstate New York.
       After graduating from Siena College near Albany in 1998, 
     Welcher tried to apply her marketing and management degree to 
     a job around her parents' home in Queensbury. It didn't work 
     out.
       ``I said: `There's no point in this at all,' '' Welcher 
     recalled, ``I'm outta here!'' Welcher--now 24 and working in 
     Los Angeles--is far from the only twenty-something to leave 
     upstate New York.
       Young New Yorkers have long been leaving for bigger 
     paychecks and jazzier lifestyles in places like Boston, 
     Austin and Atlanta. The exodus is considered a serious 
     problem because young people are a vital cog in local 
     economies--they take entry-level jobs, spend money and add 
     vibrancy to an area. Employers and local officials have 
     become concerned enough to try out some new strategies to 
     attract and retain young workers.
       Updated U.S. Census figures tracking local population 
     changes by age won't be available until later this year. 
     However, interviews with recent college graduates, employers 
     and local leaders across New York reveal a widespread 
     perception that upstate areas struggle in the competition for 
     young workers.
       Part of the problem is higher salaries offered elsewhere 
     for certain jobs. For instance, the mean 1998 salary for a 
     computer engineer in Rochester area was $54,910; it was 
     $62,930 in the Raleigh-Durham-Chapel Hill area of North 
     Carolina, according to federal Bureau of Labor Statistics 
     data.
       Lower pay can be mitigated by a relatively inexpensive 
     costs of living--three-bedroom houses in Buffalo or Syracuse 
     areas can be purchased for under $100,000. Albany Molecular 
     Research Inc. Vice President James Grates said when he tells 
     potential recruits in Berkeley that homes in the Albany area 
     can go for $90,000-$110,000--two or three times less than 
     similar houses in the Bay Area of California--``their jaws 
     drop to the table.''
       But inexpensive housing is a bigger draw for workers ready 
     to settle down and have a family. People in their 20s have 
     been known to have other priorities--like being around other 
     people in their 20s.
       ``California, Boston, Texas--they have some glitter to 
     them. Fancy nightclubs, bars, sports bars, restaurants, 
     entertainment . . . the perception is here we don't have as 
     much of that,'' said Rochester Institute of Technology 
     President Albert Simone.
       Take Atlanta, where Jonathan Cancro reports that there are 
     so many of his fellow University of Buffalo graduates that 
     he's helping start a local chapter of the college's alumni 
     association. One obvious sign of the Buffalo connection, 
     Cancro said, is the number of bars catering to Bills fans.
       ``There are tons of people down here from New York,'' said 
     the 30-year-old Long Island native. ``Not just UB.''
       The twentysomething exodus has been serious enough to show 
     up on some politicians' radar. Erie County Executive Joel 
     Giambra ran a successful campaign in 1999 on the slogan 
     ``Keep Our Kids.'' Sen. Hilliary Rodham Clinton also lamented 
     the loss of young people from New York while on the campaign 
     trail last year.
       Employers have noticed too, and have tried to sweeten the 
     pot for young people. A survey last year by the Business 
     Council of New York State employers bumping up starting pay 
     and hastening first raises.
       Companies also are experimenting with benefits that might 
     be attractive to younger, childless workers. Media Logic, a 
     marketing and advertising firm in Albany, includes yoga and 
     stress classes as part of its employees benefits package.
       Meanwhile, business groups in several cities are 
     strengthening their links to local colleges in hopes in 
     grabbing graduates to fill job slots.
       In Sycrause, the Metropolitan Development Association is 
     spending $550,000 in state grant money for summer internship 
     programs aimed at keeping area college students in the region 
     after graduation.
       In Rochester, presidents of a number of area schools--
     including RIT, the University of Rochester and the state 
     universities at Geneseo and Brockport--have met with local 
     employers to find ways to make it easier for small- and 
     medium-sized businesses to recruit local talent.
       In Albany, the Center for Economic Growth plans to bring 
     together business leaders, students and maybe even guidance 
     counselors to start dialogues on what young graduates look 
     for in an employer.
       ``To tell a 22-year-old freshly minted college graduate 
     that the reason they should come to work for my company is 
     because I have this incredible 401k plan--it's probably not 
     going to raise their eyebrows and make them go `Yahoo!' '' 
     said center President Kelly Lovell. Also, there are new signs 
     of nightlife in many old upstate cities, be it brew pubs or 
     couch-crammed coffee houses. Buffalo's Chippewa Street might 
     be the most dramatic transformation--once notorious for its 
     sex trade, it is now a gentrified strip packed with bars, 
     dance clubs and restaurants.
       Syracuse also is showing signs of rebirth, said super 
     booster Jeff Brown. The 36-year-old lawyer is helping start a 
     unique program to draw young people back to his hometown. 
     Under the ``Come Home to Sycrause'' program volunteers will 
     work off of alumni lists from local colleges and high 
     schools, contacting young expatriates to see if they want to 
     come back. The volunteers will help returnees network for 
     jobs.
       A web site is planned and there's already a toll-free 
     number: 1-866-BAK-2SYR. Brown seems qualified for the job. He 
     was once one of those young people who left, in his case for 
     Washington D.C. Brown said he liked the hubbub but missed his 
     home community. ``At some point in your life,'' he said, 
     ``you realize there's something more to life than 20 
     different Ethiopian restaurants.''
                                  ____


                 [From the New York Post, Mar. 1, 2001]

               New York's Job Growth Again Tops U.S. Rate

                          (By Kenneth Lovett)

       Albany.--Spurred by a surge in New York City, job growth in 
     the state surpassed the nation's average, for the second 
     straight year, in 2000.
       The total number of jobs in the state grew by 2.3 percent 
     last year, compared with the national average of 2.1 percent, 
     the state Labor Department reported yesterday. New York's 4.2 
     percent unemployment rate in January matched the nation's for 
     the first time in nearly a decade.
       The city had a 5.6 percent unemployment rate in January, 
     down from 5.9 percent in December and 6.4 percent last 
     January.
       Overall, New York had 7.168 million private-sector jobs in 
     January, the highest number on record.
       ``Our policies have better positioned New York to fend off 
     a national economic slowdown,'' Gov. Pataki said. Mayor 
     Giuliani recently said the city was the ``economic 
     engine'' for the state as a whole. The numbers seem to 
     back him up.
       New York City saw a 3.3-percent increase in jobs last year, 
     by far the largest jump in the state.
       Upstate saw 1.2 percent growth, significantly lower than 
     the state average.
       Large urban regions like Buffalo-Niagara Falls, Syracuse 
     and Rochester saw jobs grow by only .3 percent, .9 percent 
     and 1.1 percent, respectively.
       The health of the upstate economy looms as a major issue in 
     next year's gubernatorial race. Republican Rick Lazio drew 
     heavy criticism last year when he downplayed the region's 
     economic woes in his failed Senate bid against Hillary Rodham 
     Clinton.
       Democrats have already targeted the upstate economy as one 
     of the primary issues they will use against Pataki next year.

  Mr. BAUCUS. Mr. President, I rise today to discuss a growing crisis 
in America's rural communities. We live in a time of balanced budgets, 
large surpluses, record unemployment, and average wages rising across 
the country. However, this wealth is not universal across the United 
States. Our rural areas are suffering the exact opposite effect with 
large outmigration and negative job growth. My highest priority is 
reversing this trend, stimulating economic growth and bringing higher 
paying jobs to my home State of Montana. I am pleased to join Senator 
Clinton in introducing economic development legislation that is 
targeted to the areas of greatest need, our rural communities.
  Our Nation has enjoyed unparalleled economic prosperity during the 
past decade. However, the boom on Wall Street has not extended to Main 
Street, MT. The rural areas of America and Montana have endured 
increased unemployment, the loss of family farms, and the transition 
from a traditional economy based on natural resources to a new economy 
where information and technology are highly valued. The effects have 
been disastrous. Small businesses, which are essential components of 
community, have been driven under as people have been forced to make 
the most difficult choice of all and leave their home towns seeking a 
new and better paying job.
  In Montana, the problems are actually worse. Statewide, we are 
suffering. Comparatively we rank forty-seventh in per-capita personal 
income and second in the number of people holding more than one job. 
With such a massive economic down-turn, State and local governments are 
left unable to assist in this economic transition simply due to a lack 
of funding. The private sector invests where it can, but

[[Page S1768]]

there is not a company in existence that could finance the investment 
necessary to bring essential technology to sparsely populated areas.
  Many of our small towns are left without hope because they are faced 
with no alternative to the current situation. The tools that are 
necessary to compete in the new economy are just not available to rural 
communities and the means to attain them do not exist. If rural America 
is to survive, we are charged with finding a way for these communities 
to compete on an equal footing with the more populous areas of this 
country and the world.
  That is the intent of the legislative package that we are introducing 
today. In the same spirit that brought electricity and basic telephone 
service to our rural communities, we propose a mechanism for bringing 
broadband capabilities, cutting-edge technology equipment, and 
incentives for bringing new business to communities and regions that 
have been left behind.
  The issues addressed by this legislation strike to the heart of the 
most pressing problems in my home State of Montana. Especially in 
Eastern Montana, the so-called ``Digital Divide'' is very real and 
presents a significant obstacle to economic growth and prosperity. 
Specifically, the Broadband Deployment Initiative and the Technology 
Extension Program will not only provide an incentive to the private 
sector to bring cutting-edge technology to the most rural areas, they 
will also provide the technical expertise to allow small and medium 
businesses to use these new tools to their maximum potential. They will 
be fully equipped to compete in a global economy.
  I look forward to seeing this bipartisan legislation through Congress 
and enacted into law. I encourage my colleagues to assist us in this 
endeavor. It is our duty to ensure that all regions of America have a 
chance to achieve economic prosperity and have access to the necessary 
instruments of success.
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