[Congressional Record Volume 156, Number 10 (Tuesday, January 26, 2010)]
[Senate]
[Pages S252-S254]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FRANKEN:
  S. 2952. A bill to establish funds to rapidly create new jobs in the 
private and public sector; to the Committee on Banking, Housing, and 
Urban Affairs.
  Mr. FRANKEN. Mr. President, today I want to talk about jobs. Lately 
it seems that everyone says they want to talk about jobs and that we 
will get around to tackling jobs next week or the week after. I would 
like to kick off the discussion today, right now, and follow it up with 
what I plan to do about jobs. I would not be the first to observe that 
times are tough right now. Our Nation is still reeling from the most 
disastrous economic collapse in a generation. Failed regulatory 
policies--or really, just deregulation--bad lending practices, and Wall 
Street recklessness all contributed to the current crisis, double-digit 
unemployment for the first time in 25 years. Millions of American 
families are relying on their unemployment benefits to put food on the 
table and to pay their rent. Some are looking down at their final 
unemployment check, wondering what they are going to do next. For every 
single job opening, there are six unemployed workers. Too many people 
are left without options or hope in this dismal job market.
  In the fall of 2008, when Wall Street's financial institutions 
started falling like dominos, our regulators told us: Congress has to 
pass TARP now or we face total economic ruin. This seemed to get 
Congress moving. It passed legislation in a matter of days. My feeling 
is that the American people, especially those folks out of work, need 
their advocates to say: We have to do this now. Every Senator who has 
heard from their constituents about the depressing job market, about 
the day-to-day struggles of being unemployed, should be on the floor 
insisting that we act now; that if we don't act now and act boldly and 
broadly, Main Street will continue to suffer, and that this 
unemployment crisis we are in will drag on and on.
  The House has already acted. They passed a robust jobs package last 
December that provided needed funds to States and localities to keep 
teachers, firefighters, and police officers on the job. It provided 
funds for public infrastructure projects. These are all vital elements 
to a successful jobs creation package.
  In addition to these fundamentals, the Senate has the opportunity to 
put forward new ideas for job creation. Today I am introducing my 
proposal, the SEED Act, Strengthening our Economy through Employment 
Development, SEED. We have seen Cash for Clunkers. We have talked about 
Cash for Caulkers. Now I am proposing cash for jobs. The SEED Act is 
modeled after a program we used for several years in Minnesota during 
the recession of the 1980s. By all accounts, it was extremely 
successful. Minnesota's program got over 7,400 people back to work in 
its first 6 months and created nearly 15,000 permanent, long-term jobs. 
It did that at a much lower cost per job than the stimulus package this 
body passed last year.
  The SEED Act will incentivize rapid job creation by offering small 
and medium-size companies and nonprofits a direct wage subsidy to hire 
new workers and expand their operations. Small businesses are the 
driving force behind our economy. We all know that. They want to grow. 
But many of them need an added infusion of capital since TARP hasn't 
trickled down to them. Administered on a first-come-first-serve basis, 
these subsidies will provide 50 percent of wages of newly hired workers 
and will be disbursed through the already existing Workforce Investment 
Act system. Using this existing system will minimize the bureaucracy 
that plagues so many new initiatives. Additionally, employers who hire 
recently returned Iraq and Afghanistan vets would be eligible for a 60-
percent subsidy. The subsidy would be available for a 12-month period, 
and the employer would commit to keeping the worker on for an 
additional 3 months after the subsidized year.
  This model proved highly effective and efficient in Minnesota. Jim 
Glowacki is one of my constituents. He used Minnesota's program in the 
1980s. After he lost his job, he decided to start his own business. He 
had few resources and little ability to borrow money. He used 
Minnesota's program, which was called MEED, to hire his first two 
employees. Now his company, the JPG Group, employs 17 full-time workers 
and has an annual payroll of over $800,000. His story epitomizes the 
incredible potential for this approach to spur job creation.
  The second component of the SEED Act is to direct grants to States, 
localities, and tribes to fund green jobs; Providing funds to retrofit 
public buildings. In addition to creating green jobs, these retrofits 
will increase energy efficiency, decreasing our dependence on foreign 
oil and saving taxpayers money. These are public buildings. Too many of 
our public buildings, public housing, libraries, and schools are 
becoming outdated and don't utilize the green technologies available

[[Page S253]]

today. There are many skilled workers currently on the bench who 
already have the training they need to immediately get to work on these 
projects. These new projects will increase demand for energy-efficient 
windows and doors and heating systems and insulation, providing a boost 
to our Nation's stalled manufacturing sector. Some of you may not know 
this, but Minnesota is the Silicon Valley of windows. We are home to 
the Nation's leaders in energy-efficient windows which makes some sense 
given our winters. Retrofitting public buildings is a win for 
everyone--for workers, localities, taxpayers, manufacturing, and the 
environment. This is a win-win-win-win-win, I think. Windows, too. If 
we reallocate $10 billion from the TARP program and pass this proposal 
into law, we have the potential of creating up to 500,000 jobs, and 
quickly.
  Getting people back to work will ease the burden on public benefit 
programs like such as employment and COBRA subsidies. Many employers 
will convert their participating workers into permanent employees, 
setting them up for a long-term career. Minnesotans have stressed to me 
how efficiently this program worked in our State and that it provides 
an excellent return on investment. They have worked tirelessly to 
demonstrate the benefits of this type of bold proposal. I thank them 
for collaborating with me on this important piece of legislation. More 
than 50 Minnesota organizations, companies, and chambers of commerce 
have come out in support.
  I ask unanimous consent to have printed in the Record a list of these 
organizations.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

       The following Minnesota organizations support the SEED Act:

       Northwest Private Industry Council; Rural Minnesota CEP 
     Workforce Council; Northeast MN Workforce Council; Duluth 
     Workforce Council; Central MN Workforce Council; Southwest MN 
     Workforce Council; South Central Workforce Council; Southeast 
     Minnesota Workforce Development Board; Hennepin-Carver 
     Workforce Council; Minneapolis Private Industry/Workforce 
     Council; Anoka County Workforce Council; Dakota-Scott County 
     Workforce Council; Ramsey County Workforce Solutions; 
     Washington County Workforce Investment Board; Stearns-Benton 
     Employment & Training Council; Winona County Workforce 
     Council; Minnesota Hmong Chamber of Commerce; Minnesota Black 
     Chamber of Commerce; JPG Group; VAST Enterprises, LLC.
       A Minnesota Without Poverty; Accessability, Inc.; Anoka 
     County Human Services Job Training Center; Anne Marie's 
     Alliance, St. Cloud; Anoka County Community Action Program; 
     Arrowhead Economic Opportunity Agency; Children's Defense 
     Fund-MN; CLASP; Department of Social Work, Augsburg College; 
     Employment Action Center; Joint Religious Legislative 
     Coalition; Heartland Community Action Agency; HIRED; Kootasca 
     Community Action; Lifetrack Resources; L.I.F.T. To End 
     Poverty; Minnesota Community Action Partnership; NASW-
     Minnesota (National Association of Social Workers); Northwest 
     Community Action; Otter Tail-Wadena Community Action Council.
       Project for Pride in Living; Sabathani Community Center; 
     Southwestern Minnesota Opportunity Council; The Arc of 
     Minnesota; Three Rivers Community Action; Twin Cities 
     Community VoiceMail; Goodwill EasterSeals of Minnesota; YWCA 
     Saint Paul; Greater Minneapolis Council of Churches; 
     Minnesota FoodShare; JOBS NOW Coalition.

  Mr. FRANKEN. I urge my colleagues to join me in quickly moving 
forward on a bill to put Americans back to work. I urge them to join me 
in support of the SEED Act, Strengthening our Economy through 
Employment and Development.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2952

       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 ``Strengthening Our Economy 
     Through Employment and Development Act''.

     SEC. 2. USE OF UNEXPENDED AND REPAID FUNDS OF THE TROUBLED 
                   ASSET RELIEF PROGRAM.

       Of the amounts made available to the Secretary of the 
     Treasury under section 115 of the Emergency Economic 
     Stabilization Act of 2008 (12 U.S.C. 5225) that are 
     unobligated as of the date of enactment of this Act and of 
     all assistance received under title I of the Emergency 
     Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) 
     that is repaid on or after the date of enactment of this Act, 
     $10,000,000,000 shall be made available to carry out the 
     Private Sector Wage Subsidy Fund under section 3 and the 
     Public Sector Energy Efficiency Promotion Fund under section 
     4.

     SEC. 3. PRIVATE SECTOR WAGE SUBSIDY FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Private Sector 
     Wage Subsidy Fund'' (referred to in this section as the 
     ``Fund''), consisting of $5,000,0000,000 made available to 
     the Fund under section 2, to enable small and medium sized 
     businesses and nonprofit organizations to hire eligible 
     workers who will receive wage subsidies pursuant to this 
     section.
       (b) Allocation to Local Areas and Administration.--
       (1) In general.--The Secretary of Labor shall allocate to 
     each local area, to carry out this section, an amount that 
     bears the same relationship to the funds made available under 
     this section for a fiscal year, as the sum of the amounts 
     received under paragraph (2)(A) or (3) of section 133(b) of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2863(b)) and 
     under paragraph (2)(B) of that section by the local area for 
     that fiscal year bears to the total of such sums received by 
     all local areas for that fiscal year.
       (2) Local area.--In this section, the term ``local area'' 
     has the meaning given the term in section 101 of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2801).
       (3) Administration by local areas.--
       (A) In general.--Each local area that receives an amount 
     under this section shall provide allocations to businesses 
     and nonprofit organizations in the same manner as the local 
     area provides allocations for on-the-job training subsidies 
     under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
     seq.), to the extent consistent with this section.
       (B) Allocations to employers.--Each local area that 
     receives an amount under this section shall provide 
     allocations to businesses and nonprofit organizations through 
     twice-monthly or monthly subsidy checks for the first 9 
     months. The allocation for months 10, 11, and 12 shall be 
     withheld until the end of the 15th month, at which point the 
     business or nonprofit organization shall verify that the 
     eligible worker is still on the payroll and shall then 
     receive a lump-sum reimbursement for months 10, 11, and 12.
       (C) Flexibility.--A local area that receives an amount 
     under this section may offer customized or variant subsidy 
     arrangements with businesses and nonprofit organizations if 
     30 percent of the allocated funds have not been obligated by 
     the local area within 6 months.
       (c) Availability of Funds.--Allocation of amounts from the 
     Fund to businesses and nonprofit organizations shall be--
       (1) made available not later than 90 days after the date of 
     enactment of this Act; and
       (2) administered on a first-come, first-serve basis to 
     incentivize rapid job creation.
       (d) Eligibility.--A business or nonprofit organization is 
     eligible to receive an allocation from the Fund for wage 
     subsidies if such business or organization employs fewer than 
     500 individuals.
       (e) Wage Subsidy.--
       (1) In general.--Wage subsidies allocated under this 
     section to businesses and nonprofit organizations to hire 
     eligible workers shall be consistent with the following:
       (A) 1-year period.--A wage subsidy shall be provided for a 
     1-year period.
       (B) Amount.--
       (i) In general.--Except as provided in clauses (ii) and 
     (iii), a wage subsidy shall be--

       (I) 50 percent of total wages; or
       (II) $12 per hour,
     whichever amount is less.

       (ii) Iraq and afghanistan veterans.--Except as provided in 
     clause (iii), in the case of an individual who is a veteran 
     of military service in Iraq or Afghanistan after September 
     11, 2001, a wage subsidy shall be--

       (I) 60 percent of total wages; or
       (II) $14.40 per hour,
     whichever amount is less.

       (iii) Additional amount for employers that offer health 
     insurance.--Notwithstanding the subsidy maximum amounts 
     provided under clauses (i) and (ii), a business or nonprofit 
     organization that receives an allocation from the Fund for 
     wage subsidies under this section and contributes to the cost 
     of health insurance coverage for its employees shall receive 
     an additional $1 per hour for each eligible worker hired 
     pursuant to this section to help defray the cost of 
     contributing to such coverage.
       (C) Job wage minimum.--Except as provided in subparagraph 
     (D), a job for which a wage subsidy is allocated under this 
     section shall--
       (i) pay not less than $10 per hour; or
       (ii) start at $9 per hour with a certification from the 
     business or nonprofit organization that the wage will be 
     increased to not less than $10 per hour by the end of the 
     subsidy period.
       (D) Minimum wage requirement.--If the locality in which a 
     job for which a wage subsidy is allocated under this section 
     is located has a minimum wage requirement that is more than 
     $10 per hour, then such job shall pay not less than such 
     minimum wage requirement.
       (2) Certification by employer.--A business or nonprofit 
     organization that receives

[[Page S254]]

     an allocation from the Fund for wage subsidies under this 
     section shall provide to the local area a certification that 
     includes each of the following:
       (A) The business or organization will hire the employees 
     hired under the wage subsidy program for newly created 
     positions not for vacancies in already existing positions.
       (B) The business or organization will retain the employees 
     hired under the wage subsidy program for not less than 15 
     months.
       (C) The business or organization will not displace existing 
     workers, or reduce the hours of existing workers, with the 
     employees hired under the wage subsidy program.
       (D) The business or organization will offer comparable 
     wages and the same benefits to subsidized workers as 
     comparable, existing workers.
       (E) The business or organization will hire the worker for a 
     minimum of 30 hours per week.
       (F) If the business or nonprofit organization employs 
     individuals represented by a labor organization, the business 
     or nonprofit organization will obtain sign-off by the labor 
     organization in coordination with the existing collective 
     bargaining agreement.
       (3) Failure to comply with certification.--The Secretary of 
     Labor shall promulgate regulations regarding waivers of a 
     business or nonprofit organization's obligation to retain an 
     employee hired under the wage subsidy program for not less 
     than 15 months.
       (4) Eligible workers.--
       (A) In general.--A business or nonprofit organization that 
     receives an allocation from the Fund for wage subsidies under 
     this section shall hire only eligible workers to receive such 
     wage subsidies.
       (B) Eligible workers defined.--In this section, the term 
     ``eligible worker'' means an individual who--
       (i) has exhausted the individual's State-funded 
     unemployment insurance benefits (as verified by the State or 
     local department of labor or similar entity); or
       (ii) has been unemployed for not less than 6 months.
       (f) Administrative Costs.--Of the funds allocated to each 
     local area under this section, not more than 10 percent may 
     be used by the local areas for costs and expenses for 
     administration, marketing, job placement, and program support 
     services.

     SEC. 4. PUBLIC SECTOR ENERGY EFFICIENCY PROMOTION FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``Public Sector 
     Energy Efficiency Promotion Fund'' (referred to in this 
     section as the ``Fund''), consisting of such amounts as are 
     made available to the Fund under section 2.
       (b) Grants.--
       (1) In general.--On request by the Secretary of Energy 
     (referred to in this section as the ``Secretary''), the 
     Secretary of the Treasury shall transfer from the Fund to the 
     Secretary such amounts as the Secretary determines are 
     necessary to distribute grants to States to provide funds to 
     retrofit public buildings to increase energy efficiency.
       (2) Reservation for indian tribes.--The Secretary shall 
     reserve 1 percent of amounts transferred under paragraph (1) 
     to award grants to Indian tribes to carry out activities 
     described in this section.
       (c) Allocation to States.--Grants made available under this 
     section shall be allocated to States in accordance with 
     section 543(c) of the Energy Security and Independence Act of 
     2007 (42 U.S.C. 17153(c)).
       (d) Distribution to Political Subdivisions.--A State that 
     receives a grant under this section--
       (1) may retain not more than 30 percent of the amount of 
     the grant; and
       (2) shall distribute the remainder of the grant to 
     political subdivisions of the State through an application 
     process.
       (e) Unobligated Funds.--Any grant amounts not obligated by 
     the date that is 1 year after the date of the receipt of the 
     grant by the State or Indian tribe shall be--
       (1) returned to the Treasury of the United States; and
       (2) transferred to the Private Sector Wage Subsidy Fund 
     established under section 3.
       (f) Use of Funds.--
       (1) In general.--Subject to paragraphs (2) and (3), funds 
     made available under this section may be used only--
       (A) to retrofit public housing for increased energy 
     efficiency;
       (B) to retrofit public buildings, libraries, and schools 
     for increased energy efficiency;
       (C) to retrofit vacant or foreclosed homes for increased 
     energy efficiency; or
       (D) if there are not sufficient projects to carry out 
     energy efficiency retrofits described in subparagraphs (A) 
     through (C), to restore and refurbish public buildings.
       (2) Priority.--In using funds made available under this 
     section, a State, political subdivision of a State, or Indian 
     tribe shall give priority to projects that were identified by 
     the State or Indian tribe before the date of enactment of 
     this Act.
       (3) Energy efficiency.--
       (A) In general.--The Secretary of Energy, in coordination 
     with the Secretary of Housing and Urban Development, shall 
     create standards for measurement and verification of energy 
     efficiency in residential buildings, commercial buildings, 
     and federally-funded housing facilities.
       (B) Administration.--In creating the standards described in 
     subparagraph (A), the Secretary of Energy shall include the 
     following--
       (i) the 2009 International Energy Conservation Code (IECC) 
     or equivalent for residential buildings or the ASHRAE 90.1-
     2007 standard or equivalent for commercial buildings;
       (ii) a maximum window U-factor of .30 and a maximum solar 
     heat gain factor of .30 for both residential and commercial 
     buildings;
       (iii) certification of building energy and environment 
     auditors, inspectors, and raters by the Residential Energy 
     Services Network or an equivalent certification system, as 
     determined by the Secretary;
       (iv) certification or licensing of building energy and 
     environmental retrofit contractors by the Building 
     Performance Institute or an equivalent certification or 
     licensing system, as determined by the Secretary;
       (v) use of equipment and procedures of the Building 
     Performance Institute, the Residential Energy Services 
     Network, or other appropriate equipment and procedures (such 
     as infrared photography and pressurized testing and tests for 
     water use and indoor air quality), as determined by the 
     Secretary, to test the energy and environmental efficiency of 
     buildings effectively;
       (vi) determination of energy savings in a performance-based 
     building retrofit program through--

       (I) in the case of residential buildings, comparison of 
     before and after retrofit scores on the Home Energy Rating 
     System Index, if the final score is produced by an objective 
     third party, or compliance with 2009 IECC, as well as a 
     maximum window U-factor of .30 and a maximum solar heat gain 
     factor of .30;
       (II) in the case of commercial buildings, benchmarks set by 
     the Environmental Protection Agency, or compliance with the 
     ASHRAE 90.1 2007 standard or equivalent, as well as a maximum 
     window U-factor of .30 and a maximum solar heat gain factor 
     of .30; and
       (III) in the case of residential and commercial buildings, 
     use of a program that is approved by the Administrator of the 
     Environmental Protection Agency and subject to appropriate 
     software standards and verification of at least 15 percent of 
     all work completed;

       (vii) suggested guidelines for using--

       (I) the Energy Star portfolio manager;
       (II) the Home Energy Rating System rating system;
       (III) home performance improvements approved under the 
     Energy Star program; and
       (IV) any other tools associated with applicable retrofit 
     programs; and

       (viii) requirements, energy building codes, standards, or 
     guidelines for renovation and postretrofit inspection and 
     confirmation of work and energy savings.
       (g) Competitive Bidding.--Any project carried out under 
     this section that requires an outside contractor shall be 
     subject to a competitive bidding process.
       (h) Davis-Bacon Compliance.--
       (1) In general.--All laborers and mechanics employed on 
     projects funded directly by or assisted in whole or in part 
     by this section, under any contractor or subcontractor, shall 
     be paid wages at rates not less than those prevailing on 
     projects of a character similar in the locality as determined 
     by the Secretary of Labor in accordance with subchapter IV of 
     chapter 31 of title 40, United States Code.
       (2) Authority.--With respect to the labor standards 
     specified in this subsection, the Secretary of Labor shall 
     have the authority and functions set forth in Reorganization 
     Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.
       (i) Administrative Costs.--Of the funds made available to 
     carry out this section, not more than--
       (1) 1 percent may be used by the Secretary of Energy for 
     administrative costs; and
       (2) 4 percent of funds may be used by States and Indian 
     tribes that receive grants under this section for 
     administrative costs.

     SEC. 5. EVALUATION.

       After the termination date described in section 6(a), the 
     Secretary of Labor shall conduct an evaluation of job 
     creation effectiveness of programs carried out with funds 
     made available under this Act.

     SEC. 6. SUNSET.

       (a) In General.--The Private Sector Wage Subsidy Fund 
     established under section 3, the Public Sector Energy 
     Efficiency Promotion Fund established under section 4, and 
     the authorization of amounts made available to carry out such 
     Funds shall terminate on the date that is 2 years after the 
     date of enactment of this Act.
       (b) Amounts Returned to Treasury.--Any amounts that are in 
     the Funds described in subsection (a) on the date of 
     termination described in subsection (a) shall be returned to 
     the Treasury of the United States.
                                 ______