[Congressional Record Volume 157, Number 170 (Tuesday, November 8, 2011)]
[Senate]
[Pages S7189-S7194]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. KOHL (for himself and Ms. Mikulski).
S. 1819. A bill to amend the Older Americans Act of 1965 to improve
programs and services; to the Committee on Health, Education, Labor,
and Pensions.
Mr. KOHL. 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. 1819
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 Services for
America's Seniors Act''.
SEC. 2. STANDARDIZED ASSESSMENT OF NEEDS OF FAMILY
CAREGIVERS.
(a) In General.--Section 373 (42 U.S.C. 3030s-1) is
amended--
(1) by redesignating subsections (b) through (g) as
subsections (c) through (h), respectively;
(2) in subsection (d), as so redesignated, by striking
``subsection (b)'' and inserting ``subsection (c)'';
(3) in subsection (e), as so redesignated, by striking
``subsection (b)'' and inserting ``subsection (c)''; and
(4) by inserting after subsection (a) the following:
``(b) Assessment Program of Needs of Family Caregivers.--
``(1) In general.--The Assistant Secretary may make grants
to States to establish a program, in accordance with the
program requirements described in paragraph (5), to assess
the needs of family caregivers for targeted support services
described in paragraph (5)(C).
``(2) Application by states.--Each State seeking a grant
under this subsection shall submit an application to the
Assistant Secretary at such time, in such manner, and
containing such information and assurances as the Assistant
Secretary determines appropriate.
``(3) Grant amount.--The amount of a grant to a State under
this subsection shall be determined according to such
methodology as the Assistant Secretary determines
appropriate.
``(4) Program administration.--A State receiving a grant
under this subsection may enter into an agreement with area
agencies on aging in the State, or an Aging and Disability
Resource Center in the State, to administer the program,
using such grant funds.
``(5) Program requirements.--
``(A) Standardized assessment.--Assessments under a program
established under paragraph (1)--
``(i) shall be conducted by social workers, care managers,
nurses, or other appropriate professionals; and
``(ii)(I) shall be conducted with a standardized instrument
to identify family caregiver needs; and
``(II) in a State in which an area agency on aging or an
Aging and Disability Resource Center is using such an
instrument on the date of enactment of the Strengthening
Services for America's Seniors Act, may continue to be
conducted with that instrument.
``(B) Questionnaire.--
``(i) In general.--Subject to clause (ii), assessments
under a program established as described in paragraph (1)
shall include asking the family caregiver relevant questions
in order to determine whether the family caregiver would
benefit from any targeted support services described in
subparagraph (C).
``(ii) Completion on a voluntary basis.--The answering of
questions under clause (i) by a family caregiver shall be on
a voluntary basis.
``(iii) Addressing diverse caregiver needs and
preferences.--The questionnaire under this subparagraph shall
be designed in a manner that accounts for, and aims to
ascertain, the varying needs and preferences of family
caregivers, based on the range of their capabilities,
caregiving experience, and other relevant personal
characteristics and circumstances.
``(C) Targeted support services described.--The following
targeted support services are described in this subparagraph:
``(i) Information and assistance (including brochures and
online resources for researching a disease or disability or
for learning and managing a regular caregiving role, new
technologies that can assist family caregivers, and practical
assistance for locating services).
``(ii) Individual counseling (including advice and
consultation sessions to bolster emotional support for the
family caregiver to make well-informed decisions about how to
cope with caregiver strain).
``(iii) Support groups, including groups which provide help
for family caregivers to--
``(I) locate a support group either locally or online to
share experiences and reduce isolation;
``(II) make well-informed caregiving decisions; and
``(III) reduce isolation.
``(iv) Education and training (including workshops and
other resources available with information about stress
management, self-care to maintain good physical and mental
health, understanding and communicating with individuals with
dementia, medication management, normal aging processes,
change in disease and disability, the role of assistive
technologies, and other relevant topics).
``(v) Respite care and emergency back-up services
(including short-term in-home care services that gives the
family caregiver a break from providing such care).
``(vi) Chore services (such as house cleaning) to assist
the individual receiving care.
``(vii) Personal care (including outside help) to assist
the individual receiving care.
``(viii) Legal and financial planning and consultation
(including advice and counseling regarding long-term care
planning, estate planning, powers of attorney, community
property laws, tax advice, employment leave advice, advance
directives, and end-of-life care).
``(ix) Transportation (including transportation to medical
appointments) to assist the individual receiving care.
``(x) Other targeted support services, as determined
appropriate by the State agency and approved by the Assistant
Secretary.
``(D) Referrals.--In the case where a questionnaire
completed by a family caregiver under subparagraph (B)
indicates that the family caregiver would benefit from 1 or
more of the targeted support services described in
subparagraph (C), the agency administering the program shall
provide referrals to the family caregiver for State, local,
and private-sector caregiver programs and other resources
that provide such targeted support services to such
caregivers.
``(E) Targeting and timing of assessments.--Assessments
under the program established under paragraph (1) may be
conducted--
``(i) when an individual who is being assisted by a family
caregiver transitions from one care setting to another;
``(ii) upon referral from a social worker, care manager,
nurse, physician, or other appropriate professional; or
[[Page S7190]]
``(iii) according to circumstances determined by the State
and approved by the Assistant Secretary.
``(F) Coordination with other assessment.--Assessments
under the program established under paragraph (1) may be
conducted separately or as part of, or in conjunction with,
eligibility or other routine assessments of an individual who
is being (or is going to be) assisted by a family caregiver.
``(G) Followup services.--As the Assistant Secretary
determines appropriate, a State with a program described in
paragraph (1) shall conduct followup activities with
caregivers who have participated in an assessment to
determine the status of the caregiver and whether services
were provided.
``(H) Reporting requirement.--Each State with a program
described in paragraph (1) shall periodically submit to the
Assistant Secretary a report containing information on the
number of caregivers assessed under the program, information
on the number of referrals made for targeted support services
under the program (disaggregated by type of service),
demographic information on caregivers assessed under the
program, and other information required by the Assistant
Secretary.''.
(b) Standardized Assessment of Needs of Informal
Caregivers.--Section 202 (42 U.S.C. 3012) is amended--
(1) in subsection (b)(8)--
(A) in subparagraph (D), by striking ``and'';
(B) in subparagraph (E), inserting ``and'' after the
semicolon at the end; and
(C) by adding at the end the following:
``(F) which may carry out the informal caregiver assessment
program described in subsection (g);''; and
(2) by adding at the end the following:
``(g) Standardized Assessment of Needs of Informal
Caregivers.--
``(1) In general.--Aging and Disability Resource Centers
implemented under subsection (b)(8) may carry out an
assessment program with respect to informal caregivers and
care recipients. Such assessment program shall be modeled on
the family caregiver assessment program established under
section 373(b).
``(2) Definitions.--For purposes of an informal caregiver
assessment carried out in accordance with paragraph (1), the
following definitions shall apply:
``(A) Care recipient.--The term `care recipient' means--
``(i) an older individual;
``(ii) an individual with a disability; or
``(iii) an individual with a special need.
``(B) Individual with a special need.--The term `individual
with a special need' means an individual who requires care or
supervision to--
``(i) meet the individual's basic needs;
``(ii) prevent physical self-injury or injury to others; or
``(iii) avoid placement in an institutional facility.
``(C) Informal caregiver.--
``(i) In general.--Subject to clause (ii), the term
`informal caregiver' means an adult family member, or another
individual, who is an informal provider of in-home and
community care to a care recipient.
``(ii) Alternate definition.--A State that has a State law
with an alternate definition of the term `informal caregiver'
for purposes of a program described in paragraph (1)) may use
that definition (with respect to caregivers for care
recipients) for purposes of provisions of this Act that
relate to that program, if such alternative definition is
broader than the definition in clause (i), and subject to
approval by the Assistant Secretary.''.
(c) Conforming Amendment.--Section 631(b) (42 U.S.C. 3057k-
11(b)) is amended by striking ``subsections (c), (d), and
(e)'' and inserting ``subsections (d), (e), and (f)''.
SEC. 3. ADVISORY COMMITTEE TO ASSESS, COORDINATE, AND IMPROVE
LEGAL ASSISTANCE ACTIVITIES.
(a) In General.--Title II of the Older Americans Act of
1965 is amended--
(1) in section 215(j) (42 U.S.C. 3020e-1(j)), by striking
``section 216'' and inserting ``section 217'';
(2) by redesignating section 216 (42 U.S.C. 3020f) as
section 217; and
(3) by inserting after section 215 (42 U.S.C. 3020e-1) the
following:
``SEC. 216. ADVISORY COMMITTEE TO ASSESS, COORDINATE, AND
IMPROVE LEGAL ASSISTANCE ACTIVITIES.
``(a) Establishment.--There is established an Advisory
Committee to Assess, Coordinate, and Improve Legal Assistance
Activities (referred to in this section as the `Committee').
``(b) Membership.--
``(1) Composition.--The Committee shall be composed of 9
members--
``(A) with expertise with existing State legal assistance
development programs carried out under section 731 and
providers of State legal assistance under subtitle B of title
III and title IV; and
``(B) of whom--
``(i) 6 individuals shall be appointed by the Assistant
Secretary--
``(I) 1 of whom shall be a consumer advocate;
``(II) 1 of whom shall be a professional advocate from a
State agency or State Legal Services Developer; and
``(III) 4 of whom shall be representatives from
collaborating organizations under the National Legal Resource
Center of the Administration; and
``(ii) 3 individuals shall be appointed by the Comptroller
General of the United States.
``(2) Date.--The appointments of the members of the
Committee shall be made not later than 9 months after the
date of enactment of the Strengthening Services for America's
Seniors Act.
``(3) Period of appointment; vacancies.--Members shall be
appointed for the life of the Committee. Any vacancy in the
Committee shall not affect its powers, but shall be filled in
the same manner as the original appointment.
``(4) Chairperson and vice chairperson.--The Committee
shall select a Chairperson and Vice Chairperson from among
its members.
``(c) Initial Meeting.--The Committee shall hold its first
meeting not later than 9 months after the date of enactment
of the Strengthening Services for America's Seniors Act.
``(d) Duties of the Committee.--
``(1) Definition.--In this subsection, the term `assistance
activities' includes--
``(A) legal assistance made available to older individuals
in social or economic need under this Act;
``(B) activities of the National Legal Resource Center
carried out under section 420(a);
``(C) State legal assistance developer activities carried
out under section 731; and
``(D) any other directly related activity or program as
determined appropriate by the Assistant Secretary.
``(2) Study.--
``(A) In general.--The Committee shall design, implement,
and analyze results of a study of--
``(i) the extent to which State leadership is provided
through the State legal assistance developer in States to
enhance the coordination and effectiveness of legal
assistance activities across the State;
``(ii) the extent to which--
``(I) there is data collection and reporting of information
by legal assistance providers in States;
``(II) there is uniform statewide reporting among States;
and
``(III) the value and impact of services provided is being
captured at the State or local level; and
``(iii) the mechanisms to organize and promote legal
assistance development and services to best meet the needs of
older individuals with greatest social and economic need.
``(B) Considerations.--In carrying out subparagraph (A)(i),
particular attention shall be given to--
``(i) State leadership on targeting limited legal resources
to older individuals in greatest social and economic need;
and
``(ii) State leadership on establishing priority legal
issue areas in accordance with section 307(a)(11)(E).
``(3) Recommendations.--After completion and analysis of
study results under paragraph (2), the Committee shall
develop recommendations for the establishment of guidelines
for--
``(A) enhancing the leadership capacity of the State legal
assistance developers to carry out statewide coordinated
legal assistance service delivery, with particular focus on
enhancing leadership capacity to--
``(i) target limited legal resources to older individuals
in greatest social and economic need; and
``(ii) establish priority legal issue areas in accord with
priorities set forth in section 307(a)(11)(E);
``(B) developing a uniform national data collection system
to be implemented in all States on legal assistance
development and services; and
``(C) identifying mechanisms for organizing and promoting
legal assistance activities to provide the highest quality,
impact, and effectiveness to older individuals with the
greatest social and economic need.
``(4) Report.--Not later than 1 years after the date of the
establishment of the Committee, the Committee shall submit to
the President, Congress, and the Assistant Secretary a report
that contains a detailed statement of the findings and
conclusions of the Committee, together with the
recommendations described in paragraph (3).
``(e) Duties of the Assistant Secretary.--Not later than
180 days after receiving the report described in subsection
(d)(4), the Assistant Secretary shall issue regulations or
guidance, taking into consideration the recommendations
described in subsection (d)(3).
``(f) Powers.--
``(1) Information from federal agencies.--The Committee may
secure directly from any Federal department or agency such
information as the Committee considers necessary to carry out
the provisions of this section. Upon request of the
Committee, the head of such department or agency shall
furnish such information to the Committee.
``(2) Postal services.--The Committee may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
``(g) Personnel and Administration.--
``(1) Travel expenses.--The members of the Committee shall
not receive compensation for the performance of services for
the Committee, but shall be allowed travel expenses,
including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance
of services for the Committee. Notwithstanding section 1342
of title 31, United States Code, the Secretary may
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accept the voluntary and uncompensated services of members of
the Committee.
``(2) Detail of government employees.--Any Federal
Government employee may be detailed to the Committee without
reimbursement, and such detail shall be without interruption
or loss of civil service status or privilege.
``(3) Administrative and support services.--The Assistant
Secretary shall provide administrative and support services
to the Committee.
``(4) Procurement of temporary and intermittent services.--
The Chairman of the Committee may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals that do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under
section 5316 of such title.
``(h) Exemption From Termination Requirements.--Section 14
of the Federal Advisory Committee Act shall not apply to the
Committee.''.
(b) Authorization of Appropriations.--Section 217 of the
Older Americans Act of 1965, as redesignated by subsection
(a), is amended by adding at the end the following:
``(d) Advisory Committee to Assess, Coordinate, and Improve
Legal Assistance Activities.--There is authorized to be
appropriated to carry out section 216, $300,000 for fiscal
year 2012.''.
SEC. 4. IMPROVING THE STATE LONG-TERM CARE OMBUDSMAN
PROGRAMS.
(a) National Ombudsman Resource Center.--Section
202(a)(18)(B) of the Older Americans Act of 1965 (42 U.S.C.
3012(a)(18)(B)) is amended by striking ``make available'' and
all that follows and inserting ``reserve and provide, for the
funding of the National Ombudsman Resource Center (which may
include enabling the center to collaborate and participate
with the Centers for Medicare & Medicaid Services in
providing training for State survey agencies with an
agreement in effect under section 1864 of the Social Security
Act (42 U.S.C. 1395aa) or, in the case of States without such
an agency, work with the Administrator for the Centers for
Medicare & Medicaid Services to improve the investigative
processes used by the center to address complaints by
residents of long-term care facilities)--
``(i) for fiscal year 2012, not less than $2,000,000; and
``(ii) for each subsequent fiscal year, not less than the
sum of--
``(I) $100,000; and
``(II) the amount made available under this subparagraph
for the fiscal year preceding the year for which the sum is
determined;''.
(b) Functions of Program.--
(1) Private and unimpeded access to ombudsman services.--
Section 712(b)(1)(A) of the Older Americans Act of 1965 (42
U.S.C. 3058g(b)(1)(A)) is amended by striking ``access'' and
inserting ``private and unimpeded access''.
(2) Ombudsman development of resident and family
councils.--Section 712(a)(3)(H)(iii) of such Act (42 U.S.C.
3058g(a)(3)(H)(iii)) is amended by striking ``provide
technical support for'' and inserting ``actively encourage
and assist in''.
(3) Local entity development of resident and family
councils.--Section 712(a)(5)(B)(vi) of such Act (42 U.S.C.
3058g(a)(5)(B)(vi)) is amended by striking ``support'' and
inserting ``actively encourage and assist in''.
(c) Ombudsman Authority With Respect to HIPAA.--Section
712(b) of the Older Americans Act of 1965 (42 U.S.C.
3058g(b)) is amended--
(1) in paragraph (1)(B)(i) by striking ``the medical and
social records of a'' and inserting ``all records concerning
a''; and
(2) by adding at the end the following:
``(3) For purposes of section 264(c) of the Health
Insurance Portability and Accountability Act of 1996
(including regulations issued under that section) (42 U.S.C.
1320d-2 note), the Ombudsman and a representative of the
Office shall be considered a `health oversight agency,' so
that release of residents' individually identifiable health
information to the Ombudsman or representative is not
precluded in cases in which the requirements of clause (i) or
(ii) of paragraph (1)(B) are otherwise met.''.
(d) Disclosure and Confidentiality.--Section 712(d) of the
Older Americans Act of 1965 (42 U.S.C. 3058g(d)) is amended--
(1) in paragraph (1), by striking ``files'' and inserting
``information''; and
(2) in paragraph (2)--
(A) in the paragraph heading, by striking ``Identity of
complainant or resident'' and inserting ``Procedures'';
(B) in subparagraph (A)--
(i) by striking ``files or records'' the first place it
appears and inserting ``information (including files or
records)''; and
(ii) by striking ``disclose'' and all that follows and
inserting ``disclose such information);'';
(C) in subparagraph (B)--
(i) in the matter preceding clause (i), by striking ``files
or records'' and inserting ``information''; and
(ii) in clause (iii), by striking the period and inserting
``; and''; and
(D) by adding at the end the following:
``(C) require that the Ombudsman and each representative of
the Office hold in strict confidence all communications with
individuals seeking assistance under this Act, and take all
reasonable steps to safeguard the confidentiality of
information provided to the Ombudsman or a representative of
the Office under this title by a complainant or resident.''.
______
By Mr. BLUNT (for himself and Mrs. Gillibrand):
S. 1823. A bill to amend title 38, United States Code, to provide for
employment and reemployment rights for certain individuals ordered to
full-time National Guard duty, and for other purposes; to the Committee
on Veterans' Affairs.
Mr. BLUNT. Mr. President, I join with my friend from New York to
discuss the needs of our National Guard. We are introducing two
important pieces of legislation today that I believe will help address
those needs.
I have always been a strong supporter of our brave men and women of
the Missouri National Guard, who contribute greatly to the safety and
security of our country. Those who serve or who have served deserve
America's deepest respect and must receive the resources they need when
they come home.
Since the events of September 11, 2001, the men and women of the
Missouri National Guard have answered the call of our Nation by
volunteering to go into harm's way. Many of our soldiers and airmen in
the National Guard have been deployed numerous times, working and
training side by side with our active duty members. As you can imagine,
multiple deployments take a toll on both our guardsmen and women and
their families.
The Missouri National Guard is an emergency response force for
disasters readiness and relief. They have responded to a wide range of
State and national emergencies including flooding, tornadoes and even
hurricanes on the Gulf Coast. During the historic floods this summer,
the Missouri Guard had more than 600 guardsmen serving 14 counties
across Missouri to assist with flood relief. After the devastating
tornado in Joplin, MO, the 1-138 Infantry Regiment helped to remove
debris and assisted in gathering and provided information for those
seeking local, State and Federal resources. Members of 1139 Military
Police Battalion helped to aid law enforcement officers with traffic
control and security.
As part of their Federal mission, from 2008-2009 our Missouri
National Guard deployed more than 1,000 citizen-soldiers to Kosovo, and
in 2009 we deployed 2,352 soldiers and 1,670 Airmen to support overseas
contingency operations in Iraq and Afghanistan. Currently 1,101
Missouri Guardsmen are deployed. After serving admirably in their
tours, our Guardsmen and women return home, yet they do not always
receive the resources they need to provide for themselves and their
families. The National Guard Outreach Act of 2011, introduced by
Senator Gillibrand, will help to correct this deficiency.
The active Army health plans only cover service men and women for 6
months after they have returned from their deployments. For many, this
time period is spent simply adjusting back to civilian life. Studies
show the real stress of combat and separation from one's family takes
its toll on our service members and their loved ones for up to two
years after they return home. Over the past several years, Congress has
extended the coverage for returning National Guard soldiers with money
from Overseas Contingency Operations funding, better known around here
as supplementals. Since this funding is being normalized, I believe
it's important that we continue to provide for the needs of our
returning citizen-soldiers.
The National Guard Outreach Act of 2011 would help to provide those
returning home with secure health services, marriage and financial
counseling, substance abuse treatment and other services necessary to
aid in a smooth transition for those returning home from Iraq and
Afghanistan. Undiagnosed illnesses, left untreated, have long-lasting
social, emotional and financial impacts long after service members are
reintegrated into a community. Many Guardsmen and women today lack
health insurance and go without health care as well as behavioral
health care. I thank Senator Gillibrand for introducing this
legislation and for working with me on the bill.
I am also introducing the National Guard Employment Protection Act of
2011 to amend the Uniformed Services Employment and Reemployment Rights
Act of 1994, USERRA, to authorize the Secretary of Defense to include
[[Page S7192]]
Full Time National Guard Duty for possible exemption from the USERRA 5-
year limit on service. These exemptions cover service during a time of
war or national emergency, support of missions where others have been
ordered to duty under an involuntary call-up authority, and for other
critical missions or requirements.
Usually, certain types of active duty service are exempted from the
five-year reemployment limit under USERRA. However, the needs of today
have left our Guardsmen and women performing duties which are not
covered under the USERRA, forcing Guard units to return to duty much
sooner than usual. This, in turn, keeps service members away for longer
periods of time, often beyond the 5-year limit. When National Guardsmen
and women are working side by side with their Active Duty counterparts
supporting critical active duty missions, they should not be forced to
decide between keeping their civilian jobs and supporting critical
national security missions.
At no time in America's history has the National Guard played such a
critical role in the defense and security of our homeland, both as
partners with our active forces and allies on the continuing War on
Terror and as a critical component of homeland emergency preparedness
and disaster response. We must make sure all of our Nation's heroes can
fulfill their missions without worrying about supporting their families
when returning home.
As a Nation, we must honor our men and women in uniform, providing
them with the resources they need, both in combat and when they return
home to their families and civilian lives. This is why I am proud to
play a lead role in supporting the National Guard Employment Protection
Act of 2011 and the National Guard Outreach Act.
______
By Mr. WYDEN (for himself, Mr. Carper, and Mr. Casey):
S. 1826. A bill to provide for the availability of self-employment
assistance to individuals receiving extended compensation or emergency
unemployment compensation; to the Committee on Finance.
Mr. WYDEN. Mr. President, I rise today on behalf of myself, Senator
Carper and Senator Casey to introduce the Startup Technical Assistance
for Reemployment Training and Unemployment Prevention Act of 2011, or
the STARTUP Act. This bill would allow unemployed Americans to use the
unemployment insurance, UI, system to create jobs for themselves and
for others.
In too many cases, the current unemployment assistance programs allow
the experience and expertise of America's unemployed workers to sit on
the sidelines. The STARTUP Act promotes an alternative approach that
gives the unemployed the ability to start their own businesses and get
in the game, self-employment assistance, SEA.
In Oregon, we have got this program up and running and think other
states should be encouraged to do the same. By failing to take
advantage of self-employment assistance, we are missing an opportunity
to not only help currently unemployed workers but also to help our
economy grow and create more jobs. I know this program works, its
record in Oregon is strong and can be found in letters and testimony
from individuals who have used the program.
Take, for example, software developers Adam Lowry and Michael
Richardson who joined the ranks of the unemployed when the tech startup
they worked at went under in 2009. With little capital, they turned to
Oregon's self-employment assistance program which allowed them to draw
unemployment benefits while they and two friends launched the mobile
software development company Urban Airship, which is now one of the
best-known technology startups to emerge in Oregon in recent years.
Just yesterday, Urban Airship announced $15.1 million in strategic
investment from Salesforce.com and Verizon, among others. Last week an
additional acquisition brought the company's total payroll to 51
employees and an additional 22 open positions. At the root of Urban
Airship's success are four entrepreneurial-minded individuals and a
jump start from self-employment assistance.
Expanding self-employment assistance is a creative way to use the
current unemployment insurance structure to create new businesses and
additional jobs beyond that of the immediate beneficiary. We often talk
about the benefits of small businesses in this country, yet our
unemployment insurance programs actually prevent aspiring entrepreneurs
from putting their ideas to work. Under the unemployment insurance
systems in most states, if you stop looking for a job or you turn down
a job, you lose your unemployment benefit even if you are working to
start your own business. States with active self-employment assistance
programs, like Oregon, allow a small percent of the unemployed to focus
full time on starting their own business while drawing down their
unemployment benefits in the form of self-employment assistance. Anyone
who has started a new business knows that getting it off the ground is
a full time job in and of itself, and allowing would-be UI recipients
to focus full-time on their new business vastly increases their
likelihood of success. Rather than rely on others to create jobs for
them, self-employment assistance allows determined entrepreneurs to
create jobs for themselves and others.
The President's proposal in the American Jobs Act is a step in the
right direction; it allows states to quickly enter into an agreement
with the Department of Labor and allow the long-term unemployed, those
on extended unemployment compensation, to draw down their UI benefits
in the form of self-employment assistance. However, this does little to
encourage states to make self-employment assistance a part of their
permanent strategy. We must be more far-sighted. We ought to provide
states with a little assistance so that they can start self-employment
programs of their own, not just for periods of extended unemployment
compensation.
I want to be clear: this is no giveaway. In order to get this
benefit, unemployed workers have to meet the same wage and hour
requirements as they would to receive UI and they must prove they have
a viable business plan. The beneficiaries of self-employment assistance
really have something to offer, they have solid work experience and
solid ideas; and put into action, that combination can snowball into a
successful business with multiple employees.
There are 2.5 million micro businesses in the U.S., representing 88
percent of all businesses. They generate $2.4 trillion in receipts,
account for 17 percent of GDP, and employ more than 13 million people.
If one out of every three of these businesses hired just one additional
employee, the U.S. economy would achieve full employment. Expanding
self-employment assistance helps us get there.
A study by the Department of Labor found that self-employment
participants were 19 times more likely than eligible non-participants
to be self-employed at some point after being unemployed. Moreover,
they were four times more likely to obtain employment of any kind. The
average cost to create each of those jobs is $3,350. According to
estimates from Princeton economist and former Federal Reserve Board
Vice Chairman Alan Blinder, it takes about $93,000 worth of garden-
variety fiscal stimulus to create an average job. It is not hard to see
that job creation through SEA is an incredible bargain.
This program has been creating jobs and businesses in Oregon for
nearly two decades. Earlier this year, Pat Sanderlin, who coordinates
Oregon's program, conducted an informal ``census'' of enrollees since
2004. He found that 77 percent of businesses started by SEA
beneficiaries are still up and running. According to Mr. Sanderlin, the
companies' combined annual payroll totals $7,888,210.
Despite widespread support for self-employment and entrepreneurial
programs, only a handful of states offer SEA, and those that do take
advantage of it typically administer benefits to a small share of the
unemployed. Only about 2,400 Oregonians have used the program since its
inception in 1995. Though states currently have the option of taking
advantage of self-employment assistance, the administrative costs to
start a new program often prevent them from doing so. Because Federal
law prevents self-employment benefits from being paid out while an
individual is in a period of extended unemployment, the long-term
unemployed cannot take advantage of the program.
[[Page S7193]]
The STARTUP Act encourages states to utilize self-employment
assistance by: allowing the long-term unemployed who remain eligible
for regular or extended unemployment benefits to draw down those
benefits in the form of self-employment assistance; providing technical
assistance and model language from the Department of Labor for states
that create new self-employment programs; and providing financial
assistance to aid states in establishing, implementing, improving and/
or administering self-employment programs.
Self-employment benefits can serve as a guaranteed source of startup
capital for businesses. And unlike traditional unemployment insurance,
workers who successfully exit this program by starting their own
business can create more new jobs as business expands. When
unemployment is high and workers face extended periods of joblessness,
this is exactly the type of program we should embrace.
I encourage my colleagues to support this legislation to expand self-
employment assistance programs so that more unemployed workers have an
opportunity to create jobs for themselves and for others.
______
By Mr. KERRY:
S. 1828. A bill to increase small business lending, and for other
purposes; to the Committee on Small Business and Entrepreneurship.
Mr. KERRY. Mr. President, once again, too many of our Nation's small
businesses are facing difficulty in gaining access to capital. That is
why today I am introducing the Increasing Small Business Lending Act to
increase access to capital for our Nation's small businesses to help
them sustain and build their businesses, create jobs and expand our
economy.
In October 2008, markets froze. Credit lines were cut. A lending gap
was created in the market. Even Small Business Administration
guaranteed loans, that help reduce risk for lenders, were stalled.
Congress stepped up and enacted temporary measures to help fill the
gaps in small business lending, saving nearly 90,000 small businesses.
One such business is LazerCraze in North Andover, Massachusetts that
received an SBA loan to expand to a second location and purchase state-
of-the-art equipment that allowed them to hire an additional 37 full
time employees.
SBA, administrator Karen Mills has said that the previous temporary
changes to the SBA loan programs were a success, ``In short, it worked.
We engineered a turnaround in SBA lending even though conventional
credit was, and still is to some extent, very tight. Taxpayers got a
big bang for the buck. With just over a billion dollars in total
subsidy, we supported about $42 billion in lending. In fact, SBA had
its highest-ever weekly loan volume the week before Christmas when we
supported nearly 2 billion dollars in lending, 10 billion total last
quarter. Here is the headline: overall, that is nearly 90,000 small
businesses that are not surviving this recession, but growing and
creating jobs.
Unfortunately, the temporary small business loan provisions ran out
of funding in January 2011, ahead of the authorization which expired in
March 2011. Since then, small business lending has declined, making it
more difficult for small businesses to create jobs and for our economy
to emerge from our economic downturn.
The legislation I am introducing today is similar to the Small
Business Lending Market Stabilization Act, which I introduced in 2008
that was included in both the American Recovery and Reinvestment Act of
2009, P.L. 111-5, and extended in the Small Business jobs Act, P.L.
111-240. The Increasing Small Business Lending, Act will eliminate for
one year the fees for 7(a) and 504 Small Business Administration loans
and increase SBA loan guarantee of 90 percent, policies that were
started as part of the American Recovery and Reinvestment Act and
extended in the Small Business Jobs Act.
According to the SBA, total small business loans outstanding, loans
under $1 million, actually declined during the first half of 2011 after
the temporary provisions ended. Loans outstanding to small businesses
at the end of the second quarter totaled only $607 billion, which is
the slowest since the economic downturn began in 2008.
We can't afford to have our economic progress reversed by a decline
in access to capital for small businesses. Since the increased
guarantee and reduced fees have expired, our economic recovery could be
impeded if we don't act to continue the policies that we know work. By
extending key provisions to bolster access to capital, small businesses
will have the assurance and support they need to put their innovative
ideas into practice and get more Americans back to work.
My legislation will complement the existing Small Business Lending
Fund that encourages lending to small businesses through smaller
community banks. Small businesses are the backbone of our economy and I
ask all Senators to support job growth and small businesses by
supporting this legislation.
______
By Mr. WHITEHOUSE (for himself, Mr. Levin, Mr. Begich, Mr.
Franken, Mr. Reed, Mr. Durbin, Mr. Sanders. and Mr. Merkley):
S. 1829. A bill to amend the Truth in Lending Act to empower the
States to set the maximum annual percentage rates applicable to
consumer credit transactions, and for other purposes; to the Committee
on Banking, Housing, and Urban Affairs.
Mr. WHITEHOUSE. Mr. President, I was here last week in this Chamber
to discuss a variety of areas in which the American people are not
getting a straight deal compared to special interests and folks who
have a lot of power for themselves and their industries in Washington.
In that speech I proposed a number of concrete steps we could take to
help restore the balance of power in our Nation between ordinary
Americans on the one hand and the giant corporations and special
interests that give themselves special deals and privileges that the
American people do not share on the other hand.
Today I am here to introduce legislation to take one of those steps;
that is, to protect ordinary consumers from runaway interest rates on
credit cards from Wall Street banks. This is something that has gone
unchecked for far too long. In the last Congress we passed two pieces
of banking legislation. We passed the Credit Card Act, which ended some
of the worst tricks and traps hidden in credit card contracts, and we
passed the Dodd-Frank Act, which restructured our system of financial
regulation and created a new agency to protect consumers from hazardous
mortgages and credit cards.
Regrettably, one particularly bad practice was not addressed in
either of those two pieces of legislation: the runaway credit card
interest rates with which families are too often burdened. I will add
it is not just families. I went through Olneyville in Providence about
2 weeks ago and spoke to a small business owner who was having tough
times. His bank had pulled his line of credit, so he was having to fund
his business off his credit card, and they had bumped up his credit
card rate to--you guessed it--30 percent.
The Empowering States' Right to Protect Consumers Act, which I am
introducing today, would pick up where the Credit Card Act and Dodd-
Frank left off by restoring to our 50 sovereign States the power which
they have properly had through the vast bulk of the history of this
Republic to protect their home State consumers with limits on credit
card and other loan interest rates. This is not a new power to States.
This is not a new principle or idea. This is the restoration of a
historic States right which was just eliminated a few decades ago.
When you and I were growing up, a credit card offer with a 20-percent
or 30-percent interest rate might be something to bring to the
attention of law enforcement. Such interest rates were illegal under
most State laws. Today, in contrast, credit card companies routinely
charge rates of 30 percent or more. We may not know, going through our
credit card agreement, that is where we are going to end up. They may
have a teaser rate up front that is a lower rate. But make one of those
mistakes in that 20-page-long contract that is full of tricks and
traps, and, pow, there we are at 30 percent.
What happened between our childhood when a 30-percent interest rate
was something to bring to the attention of law enforcement, and now,
when ordinary families are bedeviled
[[Page S7194]]
with 30 percent interest rates on their credit cards? Before 1978--
which is for the first 202 years of the American Republic--each State
had the ability to enforce usury laws, interest rate limits to protect
their citizens. Our economy grew and flourished during those two
centuries, and lenders profited while complying with the laws in effect
where they operated.
Then came 1978 and a seemingly uneventful Supreme Court case. It was
little noticed at the time. It was decided in Marquette National Bank
of Minneapolis v. First of Omaha Service Corporation. The Supreme Court
had to decide what State's law to apply when the bank was domiciled in
one State but the customer lived in a different State.
The Court looked at the word ``located'' in the National Bank Act of
1863, and it decided it meant the location of the bank and not the
location of the customer. They did not get it right away, but it did
not take long before some big banks spotted the opportunity. They could
avoid interest rate restrictions by reorganizing as national banks and
moving to States that had weak interest rate protections and
comparatively weak consumer protections. The proverbial race to the
bottom followed as a small handful of States eliminated interest rate
caps and degraded consumer protection in order to attract lucrative
credit card business and related tax revenue to their States.
That is why the credit card divisions of major banks are based in
just a few States and why consumers in other States are often denied
protection from outrageous interest rates and fees, even though those
outrageous interest rates and fees are against the law of the
consumer's home State.
My bill would reinstate the historic longstanding powers of States to
set interest rate caps that protect their own citizens.
Let me be clear about what this bill would not do. It would not
prescribe or recommend any interest rate caps nor would it impose any
other lending limitations. It is pure States rights. It would restore
to the States the power they enjoyed for over 200 years from the
founding of the Republic: the power to say enough, the power to say
that 30 percent or 50 percent or whatever the State deems appropriate
should be the limit on interest charged to their people.
The current system is not only unfair to consumers, it is unfair to
our local lenders and retailers who continue to be bound by the laws of
the State in which they are located. This is a special privilege for
big national banks that can move their offices to whatever State will
give them the best deal in terms of lousy consumer protection and
unlimited interest rates. A small local lender has to play by the rules
of fair interest rates. Gigantic credit card companies can avoid having
any rules at all. We need to level the playing field to eliminate this
unfair and lucrative advantage for Wall Street banks against our local
credit unions and other small lenders.
When we pass this bill, States can dust off or reenact their usury
statutes--most of which still limit interest rates to 18 percent or
less--and once again begin protecting their consumers from excessive
interest rates. This is the historic norm in our constitutional
Republic. It is the 30-percent and over interest rates that are the
recent anomaly that are the historic peculiarity. We should go back to
the historic States rights norm, the way the Founding Fathers saw
things under the doctrine of federalism and close this modern
bureaucratic loophole that allows big Wall Street banks a special deal
to gouge our constituents.
As I close, I thank Senators Levin, Durbin, Begich, Franken, Reed of
Rhode Island--most significantly my senior Senator--Sanders, and
Merkley for their cosponsorship of this bill. In the past, similar
legislation has garnered bipartisan support. It did so as an amendment
to Dodd-Frank, and I hope my Republican colleagues will consider giving
this bill a close look and join with us. This is purely an issue of
restoring the balance of power to the States and to the people of those
States as voters--federalism, something I know many Republicans support
in other contexts.
I ask all of my colleagues for their consideration and support.
____________________