[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7568-S7571]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1663. Ms. BALDWIN (for herself and Mr. Booker) submitted an
amendment intended to be proposed to amendment SA 1618 proposed by Mr.
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill
H.R. 1, to provide for reconciliation pursuant to titles II and V of
the concurrent resolution on the budget for fiscal year
[[Page S7569]]
2018; which was ordered to lie on the table; as follows:
At the end, add the following:
TITLE III--STRONGER WAY
SEC. 30001. TRANSITIONAL JOBS PROGRAM.
(a) Purposes.--The purposes of the transitional jobs
program under this section are to--
(1) reduce poverty and unemployment;
(2) offer unemployed or partially employed individuals the
opportunity to work in a transitional job for the purpose of
enabling such individuals to gain, through wage-paying jobs,
the experience and skills needed to move into regular
employment; and
(3) assist employers to create new regular employment.
(b) Definitions.--In this section:
(1) Employer of record.--The term ``employer of record''
means a local government, nonprofit, or for-profit entity
selected under subsection (c)(3)(C)(i) to carry out the
responsibilities described in subsection (c)(4).
(2) Host site employer.--The term ``host site employer''
means an employer that--
(A) provides an individual who is eligible for a
transitional job with the opportunity to work in a specific
transitional job for which the individual is qualified, as
determined by such employer, at a worksite that is under the
direct supervision of such employer; and
(B) agrees to be responsible for--
(i) selecting, training, and supervising the transitional
job worker, including providing a written job description,
initial training, ongoing management, and periodic
performance reviews;
(ii) certifying to the employer of record, in the manner
prescribed by the Secretary, the number of hours that the
transitional job worker has worked for the host site
employer; and
(iii) cooperating with the employer of record in
facilitating the movement of the transitional job worker into
regular employment.
(3) Local area.--The term ``local area'' means a city,
county, or other general purpose political subdivision of a
State.
(4) Regular employment.--The term ``regular employment''
means regular, unsubsidized employment, as defined by the
Secretary.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(6) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
(7) Transitional job.--The term ``transitional job'' means
a job offered to an eligible individual through the program
authorized under subsection (c) that--
(A) provides the rate of pay described in subsection
(c)(4)(F); and
(B) provides the individual with employment of--
(i) not less than 16 hours per week; and
(ii) not more than 40 hours per week, when combined with
any hours per week of work that the individual is employed
through any other employer (if applicable).
(c) Transitional Jobs.--
(1) Program authorized.--From amounts made available under
subsection (d), the Secretary shall establish a program,
through grant agreements described in paragraph (3) with
State and local government agencies, that provides eligible
unemployed or partially employed individuals with
opportunities to work in a transitional job for the purpose
of enabling such individuals to gain, through wage-paying
jobs, the experience and skills needed to move into regular
employment.
(2) Eligibility.--To be eligible for a transitional job, an
individual shall--
(A) be a resident of the United States, and a resident of
the State in which the individual applies for a transitional
job;
(B) be not less than 18 years of age;
(C) not be incarcerated in any Federal or State penal
institution, unless the individual is participating in a
work-release program authorized by the United States or a
State and the United States or the State authorizes
employment under this circumstance in a transitional job; and
(D) be unemployed, or employed for less than 30 hours per
week, for not less than 4 consecutive weeks preceding the
individual's application for a transitional job.
(3) Transitional jobs program administration.--
(A) In general.--The Secretary shall enter into agreements
with State and local government agencies under which--
(i) the State and local government agencies carry out all
activities described in subparagraph (C); and
(ii) the Secretary provides grants to the State and local
government agencies to carry out such activities.
(B) Selection criteria.--The Secretary shall select State
and local government agencies for the agreements described in
subparagraph (A) based on--
(i) the agencies' level of experience and commitment to
transitional jobs programs; and
(ii) such other criteria as the Secretary determines
appropriate, which may include criteria relating to the
implementation by such agencies of transitional jobs program
models under this section.
(C) Activities.--The activities described in this paragraph
are the following:
(i) Select, on a competitive basis, and enter into a
contract with one or more local government, nonprofit, or
for-profit entities to--
(I) administer the transitional jobs program in the State
or local area to be served; and
(II) function as the employer of record described in
paragraph (4).
(ii) Pay each entity selected to serve as an employer of
record, based upon the terms of the contract and full
documentation of performance, for the entity's performance of
its contractually defined services in administering the
transitional jobs program, including reimbursement of the
entity for appropriate wages and taxes the entity has paid,
as required under subparagraphs (F) and (G) of paragraph (4),
to or on behalf of eligible individuals who worked in
transitional jobs in the entity's capacity as an employer of
record. A State or local governmental agency may require a
host employer to pay a portion of the appropriate wages and
taxes for the individual.
(iii) Cooperate with the Comptroller General of the United
States, the Congressional Budget Office, and other Federal
and State agencies in the performance of audits and the
conduct of fiscal and programmatic oversight.
(iv) Annually submit to the Secretary, and to the Governor
or other chief executive officer of the State in which the
program is located and the State legislature, a report on the
State or local government agency's role and accomplishments
in the operation of the transitional jobs program, in a
format specified by the Secretary.
(v) Conduct, or enter into arrangements with independent
academic or research organizations to conduct, periodic
evaluations of the effectiveness of the program within the
State or local area served in--
(I) reducing poverty and unemployment;
(II) enabling unemployed and underemployed individuals to
gain the experience and skills needed to move into regular
employment; and
(III) assisting employers in creating new regular
employment.
(vi) Promulgate any rules necessary for the agency's
operation of the transitional jobs program.
(D) Scope of program.--
(i) In general.--The Secretary shall, to the greatest
extent practicable and subject to the availability of
appropriations, ensure that the agreements described in
subparagraph (A) make the transitional jobs program available
to eligible individuals in all local areas of all States.
(ii) Individuals with significant barriers to employment.--
Notwithstanding clause (i), a State or local government
agency entering into an agreement under subparagraph (A) may,
in carrying out the activities described in subparagraph (C),
choose to target the assistance to eligible individuals under
paragraph (2) who have significant barriers to employment.
(iii) Use of existing systems.--A State or local government
agency entering into an agreement under subparagraph (A) may
carry out the activities described in subparagraph (C)
through, or in alignment with, other subsidized employment
and job training activities or systems available within the
State or local area.
(4) Responsibilities of an employer of record.--Each local
government, nonprofit, or for-profit entity selected to serve
as an employer of record under paragraph (3)(C)(i) shall do
each of the following:
(A) Determine the eligibility of individuals applying for
the transitional jobs program under this section.
(B) Conduct orientation activities for individuals that the
employer of record has determined are eligible for the
transitional jobs program.
(C) Assess the education, prior work experience, and other
relevant factors of each eligible individual who requests a
transitional job, for the purpose of assisting the individual
to be successful in applying for and performing well in a
specific transitional job.
(D) Connect each eligible individual requesting a
transitional job to the one-stop delivery system established
under section 121(e) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3151(e)), and to other resources
that provide assistance to job seekers.
(E) Offer each eligible individual who desires to work in a
transitional job and meets the eligibility requirements under
subparagraphs (A) through (D) of paragraph (2) the
opportunity to work for a host site employer. The host site
employer may be--
(i) the employer of record; or
(ii) another organization that has entered into an
agreement with the employer of record, and as part of such
agreement, agrees to function as, and meet the
responsibilities of, a host site employer, for a period not
to exceed 30 weeks, subject to the requirements of paragraph
(5).
(F) Pay each individual described in subparagraph (E), for
each hour of work performed for the host site employer, an
amount at a rate of pay that is equal to, or greater than,
the greater of--
(i) the minimum wage rate applicable in the State in which
the applicable position is located;
(ii) the wage rate applicable under section 6 of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206); or
(iii) if the State or local governmental agency determines
appropriate, the prevailing wage rate, as determined by the
[[Page S7570]]
State or local governmental agency, for the type of work
performed by the individual.
(G) With respect to the employment of each individual
described in subparagraph (E)--
(i) pay any applicable Federal taxes for employers,
including the employer taxes imposed under sections 3111,
3221, and 3301 of the Internal Revenue Code of 1986;
(ii) pay any other State or local government taxes that
employers in the relevant State or local area are required to
pay;
(iii) withhold from the individual's earnings the taxes
imposed under sections 3101 and 3201 of the Internal Revenue
Code of 1986, and any other Federal, State, or local tax
required to be withheld for employees;
(iv) complete and submit to the appropriate government
agencies, all required Federal, State, and local tax-related
and employment-related forms that an employer would typically
submit, including by ensuring that each individual provides
the information necessary for the completion of such forms;
(v) provide the individual with a Form W-2 Wage and Tax
Statement for the calendar year;
(vi) provide for workers' compensation coverage for the
individual under the applicable Federal and State workers'
compensation laws;
(vii) perform, either directly or through an agreement
described in subparagraph (E)(ii) with a host site employer,
all other functions that an employer would typically perform;
(viii) comply with any applicable requirements for
providing health insurance coverage, including under the
Patient Protection and Affordable Care Act (Public Law 111-
148) and any amendments made by that Act; and
(ix) provide any benefits that are otherwise required of
employers in the relevant State or local area.
(H) Ensure that no transitional job would result in a
violation of any of the worker protections provided in
paragraph (6).
(5) Duration of transitional job.--
(A) In general.--An individual may work in a transitional
job for a period not to exceed 30 weeks, as long as--
(i) the individual continues to meet the eligibility
requirements for a transitional job under paragraphs (A)
through (C) of paragraph (2);
(ii) the individual, during the period of employment in the
transitional job, pursues efforts to replace hours of work in
the transitional job with regular employment;
(iii) the individual has not--
(I) obtained regular employment that consistently equals or
exceeds 30 hours of work per week; or
(II) turned down any appropriate offer for such regular
employment, as determined by the Secretary; and
(iv) if the individual receives and accepts an appropriate
offer for such regular employment, the individual does not
postpone the starting date for such employment beyond the
earliest date practicable, as determined by the Secretary,
even if such date occurs before the individual has reached
the maximum transitional job time period of 30 weeks.
(B) Additional transitional job.--A State or local
government agency administering a transitional jobs program
under this subsection shall, subject to the availability of
funds, allow an individual who has completed the maximum
number of weeks in a transitional job an opportunity to work
in a different transitional job, under the same terms and
conditions established under this subsection, if the
individual--
(i) is unable, after the end of 30 weeks of employment in a
transitional job, to find regular employment that
consistently equals or exceeds 30 hours per week;
(ii) engages in an intensive job search, as defined by the
Secretary, for not less than 4 consecutive weeks following
the completion of a transitional job, and remains unable to
find regular employment; and
(iii) meets the eligibility requirements under
subparagraphs (A) through (E) of paragraph (2).
(6) Worker protections.--
(A) Prohibition against violation of contracts.--A
transitional job shall not violate an existing contract for
services or a collective bargaining agreement, and a
transitional job that would violate a collective bargaining
agreement shall not be undertaken without the written
concurrence of the labor organization and employer concerned.
(B) Other prohibitions.--An individual described in
paragraph (4)(E) shall not be assigned to a transitional
job--
(i) when any other individual is on layoff from the same or
any substantially equivalent job;
(ii) if the employer has terminated the employment of any
regular employee or otherwise caused an involuntary reduction
in its workforce with the intention of filling the vacancy so
created with the individual working in the transitional job;
or
(iii) if the employer has caused an involuntary reduction
to less than full time in hours of any employee in the same
or a substantially equivalent job.
(7) Evaluations.--The Secretary may reserve not more than a
total of 10 percent of the amounts made available under
subsection (d) for--
(A) evaluations of transitional jobs program models
implemented with grants awarded under this section; and
(B) other evaluations of grants and activities carried out
under this section.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary.
SEC. 30002. POVERTY REDUCTION TAX CREDITS.
(a) Reform of Earned Income Credit.--
(1) In general.--Section 32 of the Internal Revenue Code of
1986 is amended--
(A) by amending subsection (b) to read as follows:
``(b) Percentages and Amounts.--For purposes of subsection
(a):
``(1) Percentages.--The credit percentage and the phaseout
percentage shall be determined as follows:
------------------------------------------------------------------------
``In the case of an eligible individual The credit The phaseout
with: percentage is: percentage is:
------------------------------------------------------------------------
No qualifying children.................. 23.15 23.15
1 qualifying child...................... 70 23.85
2 qualifying children................... 75 24.50
3 or more qualifying children........... 80 29.70.
------------------------------------------------------------------------
``(2) Amounts.--
``(A) In general.--Subject to subparagraph (B), the earned
income amount and the phaseout amount shall be determined as
follows:
------------------------------------------------------------------------
The earned
``In the case of an eligible individual income The phaseout
with: amount is: amount is:
------------------------------------------------------------------------
No qualifying children..................... $6,612 $16,969
1 qualifying child......................... $8,277 $15,000
2 qualifying children...................... $9,675 $15,000
3 qualifying children...................... $12,220 $15,000.
------------------------------------------------------------------------
``(B) Joint returns.--
``(i) In general.--Except as provided in clause (ii), in
the case of a joint return filed by an eligible individual
and such individual's spouse, the phaseout amount determined
under subparagraph (A) shall be increased by $5,550.
``(ii) Taxpayers with no qualifying children.--In the case
of a joint return filed by an eligible individual and such
individual's spouse who do not have a qualifying child for
the taxable year, the phaseout amount in the third column of
the first row of the table in subparagraph (A) shall be
increased by $8,000.'';
(2) in subclause (II) of subsection (c)(1)(A)(ii), by
striking ``attained age 25 but not attained age 65'' and
inserting ``attained age 21 but not attained age 67''; and
(3) by amending subsection (j) to read as follows:
``(j) Inflation Adjustments.--
``(1) In general.--In the case of any taxable year
beginning after 2018, each of the dollar amounts in
subparagraph (A) of subsection (b)(2) (after being increased
under subparagraph (B) thereof) shall be increased by an
amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2017'
[[Page S7571]]
for `calendar year 2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any dollar amount increased under
paragraph (1) is not a multiple of $50, such dollar amount
shall be rounded to the nearest multiple of $50.''.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2017.
(b) Establishment of Fully Refundable Child Tax Credit.--
(1) Credit made refundable.--
(A) In general.--The Internal Revenue Code of 1986 is
amended--
(i) by redesignating section 24, as amended by this Act, as
section 36C; and
(ii) by moving section 36C (as so redesignated) from
subpart A of part IV of subchapter A of chapter 1 to the
location immediately before section 37 in subpart C of part
IV of subchapter A of chapter 1.
(B) Conforming amendments.--
(i) Section 36C of such Code, as redesignated by subsection
(a), is amended by striking subsection (d).
(ii) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of subtitle A of such Code is
amended by striking the item relating to section 24.
(iii) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of subtitle A of such Code is
amended by inserting after the item relating to section 36B
the following:
``Sec. 36C. Child tax credit.''.
(iv) Subparagraph (B) of section 45R(f)(3) of such Code is
amended to read as follows:
``(B) Special rule.--Any amounts paid pursuant to an
agreement under section 3121(l) (relating to agreements
entered into by American employers with respect to foreign
affiliates) which are equivalent to the taxes referred to in
subparagraph (A) shall be treated as taxes referred to in
such subparagraph.''.
(v) Section 152(f)(6)(B)(ii) of such Code is amended by
striking ``section 24'' and inserting ``section 36C''.
(vi) Paragraph (26) of section 501(c) of such Code is
amended in the flush matter at the end by striking ``section
24(c)'' and inserting ``section 36C(c)''.
(vii) Section 6211(b)(4)(A) of such Code is amended--
(I) by striking ``24(d),''; and
(II) by inserting ``, 36C'' after ``36B''.
(viii) Section 6213(g)(2) of such Code is amended--
(I) in subparagraph (I), by striking ``section 24(e)'' and
inserting ``section 36C(e)'';
(II) in subparagraph (L), by striking ``24, or 32'' and
inserting ``32, or 36C''; and
(III) in subparagraph (P)--
(aa) by striking ``24(h)(2)'' and inserting ``36C(g)(2)'';
(bb) by striking ``24'' and inserting ``36C''; and
(cc) by striking ``(h)(2) thereof'' and inserting ``(g)(2)
thereof''.
(ix) Section 6402(m) of such Code is amended by striking
``24 (by reason of subsection (d) thereof) or 32'' and
inserting ``32 or 36C''.
(x) Section 6695(g) of such Code is amended by striking
``24, 25A(a)(1), or 32'' and inserting ``25A(a)(1), 32, or
36C''.
(xi) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``, 36C'' after ``36B''.
(xii) Section 36C(h) of such Code, as added by this Act, is
amended by striking paragraphs (6) and (7).
(2) Modification of credit.--
(A) Credit amount.--Subsection (a) of section 36C of the
Internal Revenue Code of 1986, as redesignated by subsection
(b)(1), is amended to read as follows:
``(a) Allowance of Credit.--In the case of a taxpayer with
1 or more qualifying children, there shall be allowed as a
credit against the tax imposed by this subtitle for the
taxable year an amount equal to 45 percent of the taxpayer's
earned income (within the meaning of section 32) which is
taken into account in computing taxable income for the
taxable year.''.
(B) Limitations.--Subsection (b) of section 36C of such
Code, as so redesignated, is amended to read as follows:
``(b) Limitation.--
``(1) In general.--The amount of the credit determined
under subsection (a) for any taxable year shall not exceed an
amount equal to the product of $1,000 and the number of
qualifying children of the taxpayer for the taxable year.
``(2) Reduction based on modified adjusted gross income.--
``(A) In general.--The amount which would (but for this
paragraph) be allowable as a credit under this section
(determined after the application of paragraph (1)) shall be
reduced (but not below zero) by $50 for each $1,000 (or
fraction thereof) by which the taxpayer's modified adjusted
gross income exceeds--
``(i) $110,000, in the case of a joint return,
``(ii) $75,000, in the case of an individual who is not
married, and
``(iii) $55,000, in the case of a married individual filing
a separate return.
``(B) Marital status; adjusted gross income.--For purposes
of this paragraph--
``(i) marital status shall be determined under section
7703, and
``(ii) the term `modified adjusted gross income' means
adjusted gross income increased by any amount excluded from
gross income under section 911, 931, or 933.''.
(C) Adjustment for inflation.--Section 36C of such Code, as
so redesignated, is amended by inserting after subsection (c)
the following new subsection:
``(d) Adjustment for Inflation.--
``(1) In general.--In the case of any taxable year
beginning after 2018, the $1,000 amount in subsection (b)(1)
shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2017'
for `calendar year 2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase determined under paragraph
(1) is not a multiple of $50, such increase shall be rounded
to the nearest multiple of $50.''.
(D) Conforming amendments.--Section 36C(h) of such Code, as
added by this Act, is amended--
(i) by striking paragraphs (2) and (3),
(ii) by redesignating paragraphs (4), (5), and (8) as
paragraphs (2), (3), and (4), respectively, and
(iii) by striking ``(2) through (8)'' in paragraph (1) and
inserting ``(2), (3), and (4)'',
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2017.
______