110th CONGRESS
1st Session
S. 1034
To create investment opportunities for rural families and access
to credit for rural entrepreneurs and microenterprises, to support rural
regional investment, and for other purposes.
IN THE SENATE OF THE UNITED STATES
March 29, 2007
Mrs. CLINTON introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To create investment opportunities for rural families and access
to credit for rural entrepreneurs and microenterprises, to support rural
regional investment, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Rural Investment to Strengthen
our Economy Act of 2007' or the `Rural RISE Act'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--NEW FINANCIAL OPPORTUNITIES FOR RURAL AMERICANS
Sec. 101. Capital loss deduction allowed with respect to sale or exchange
of principal residence in certain rural areas.
Sec. 102. Rural student loan forgiveness.
TITLE II--ACCESS TO CREDIT FOR RURAL ENTREPRENEURS AND MICROENTERPRISES
Sec. 201. Rural entrepreneurship and microenterprise program.
TITLE III--RURAL REGIONAL INVESTMENT INITIATIVE
Sec. 301. Rural regional investment initiative.
Sec. 302. Rural regional entrepreneurship program.
TITLE IV--REGIONAL SKILLS ALLIANCES
Sec. 402. Definition of Secretary.
Subtitle A--Skill Grants
Sec. 412. Use of amounts.
Sec. 413. Requirement of matching funds.
Sec. 414. Limit on administrative expenses.
Sec. 415. Authorization of appropriations.
Subtitle B--Planning Grants
Sec. 423. Requirement of matching funds.
Sec. 424. Authorization of appropriations.
TITLE V--SMALL BUSINESS JOBS TAX CREDIT
Sec. 501. Expansion of work opportunity tax credit.
TITLE I--NEW FINANCIAL OPPORTUNITIES FOR RURAL AMERICANS
SEC. 101. CAPITAL LOSS DEDUCTION ALLOWED WITH RESPECT TO SALE OR EXCHANGE
OF PRINCIPAL RESIDENCE IN CERTAIN RURAL AREAS.
(a) In General- Subsection (c) of section 165 of the Internal Revenue Code
of 1986 (relating to limitation on losses of individuals) is amended--
(1) by striking `and' at the end of paragraph (2),
(2) by striking the period at the end of paragraph (3) and inserting `;
and', and
(3) by adding at the end the following new paragraph:
`(4) losses arising from the sale or exchange of the principal residence
(within the meaning of section 121) of the taxpayer, but only if such
principal residence--
`(A) is located in a nonmetropolitan county which, based on information
contained in the 2000 decennial census, has a population which resides
in areas more than 50 percent of which are classified as rural by the
Secretary of Agriculture, and
`(B) was acquired by the taxpayer after the date of the enactment of
this paragraph.'.
(b) Conforming Amendment- Section 67(b)(3) is amended by striking `paragraph
(2) or (3)' and inserting `paragraph (2), (3), or (4)'.
(c) Effective Date- The amendments made by this section shall apply to sales
and exchanges after the date of the enactment of this Act, in taxable years
ending after such date.
SEC. 102. RURAL STUDENT LOAN FORGIVENESS.
(a) Definitions- In this section:
(1) DEGREE- The term `degree' means an associate's degree or baccalaureate
degree awarded by an institution of higher education.
(2) ELIGIBLE BORROWER- The term `eligible borrower' means any borrower
who is not in default on any of the borrower's student loans under part
B, D, or E of title IV of the Higher Education Act of 1965.
(3) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher education'
has the meaning given the term in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001).
(4) ELIGIBLE AREA- The term `eligible area' means a nonmetropolitan county
that, based on information contained in the 2000 decennial census, has
a population that resides in areas more than 50 percent of which are classified
as rural by the Secretary of Agriculture.
(5) SECRETARY- The term `Secretary' means the Secretary of Education.
(1) IN GENERAL- The Secretary shall carry out a program of assuming or
cancelling the obligation to repay, pursuant to subsection (c), a loan
made, insured, or guaranteed under part B, D, or E of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 20 U.S.C. 1087a
et seq., 20 U.S.C. 1087aa et seq.), excluding loans made under section
428B of such Act or comparable loans made under part D of such Act, for
any borrower who--
(B) resides in an eligible area; and
(C) is employed in an eligible area.
(2) REGULATIONS- The Secretary is authorized to prescribe such regulations
as may be necessary to carry out the provisions of this section.
(c) Loan Repayment or Cancellation-
(1) IN GENERAL- The Secretary shall assume or cancel the obligation to
repay, after each of the first 5 years of the residency and employment
described in subparagraphs (B) and (C) of subsection (b)(1) that occur
after the date of enactment of this Act, 10 percent of the total amount
of all loans made to a student under the provisions of title IV of the
Higher Education Act of 1965 as described in subsection (b)(1), up to
a maximum amount of $2,000 each year.
(2) CONSTRUCTION- Nothing in this section shall be construed to authorize
the refunding of any repayment of a loan made, insured, or guaranteed
under part B, D, or E of title IV of the Higher Education Act of 1965.
(3) INTEREST- If a portion of a loan is repaid or cancelled by the Secretary
under this section for any year, the proportionate amount of interest
on such loan that accrues for such year shall be repaid or cancelled by
the Secretary so long as the total amount repaid or cancelled by the Secretary
in any 1 year does not exceed $2,000.
(d) Repayment to Eligible Lenders- The Secretary shall pay to each eligible
lender or holder for each fiscal year an amount equal to the aggregate amount
of loans which are subject to repayment pursuant to this section for such
year.
(e) Application for Repayment or Cancellation-
(1) IN GENERAL- An eligible borrower desiring loan repayment or cancellation
under this section shall submit a complete and accurate application to
the Secretary at such time, in such manner, and containing such information
as the Secretary may require.
(2) CONDITIONS- An eligible borrower may apply for loan repayment or cancellation
under this section after completing each year of qualifying residency
and employment. The eligible borrower shall receive forbearance while
engaged in qualifying residency and employment unless the borrower is
in deferment while so engaged.
(f) Authorization of Appropriations-
(1) LOAN REPAYMENT AND CANCELLATION- There are authorized to be appropriated
to carry out this section such sums as may be necessary.
(2) PERKINS LOAN FUNDS- There are authorized to be appropriated such sums
as may be necessary for Federal capital contributions to student loan
funds established under part E of title IV of the Higher Education Act
of 1965.
(g) Repayment or Cancellation Excluded From Gross Income- Section 108(f)(1)
of the Internal Revenue Code of 1986 (relating to student loans) is amended
by inserting `or pursuant to section 102 of the Rural Investment to Strengthen
our Economy Act of 2007' after `employers'.
TITLE II--ACCESS TO CREDIT FOR RURAL ENTREPRENEURS AND MICROENTERPRISES
SEC. 201. RURAL ENTREPRENEURSHIP AND MICROENTERPRISE PROGRAM.
Subtitle D of the Consolidated Farm and Rural Development Act is amended
by inserting after section 364 (7 U.S.C. 2006f) the following:
`SEC. 365. RURAL ENTREPRENEURSHIP AND MICROENTERPRISE PROGRAM.
`(a) Definitions- In this section:
`(1) ECONOMICALLY DISADVANTAGED MICROENTREPRENEUR- The term `economically
disadvantaged microentrepreneur' means an owner, majority owner, or developer
of a microenterprise in an eligible area that has the ability to compete
in the private sector but has been impaired due to diminished capital
and credit opportunities, as compared to other microentrepreneurs in the
industry.
`(2) ELIGIBLE AREA- The term `eligible area' means a nonmetropolitan county
that, based on information contained in the 2000 decennial census, has
a population that resides in areas more than 50 percent of which are classified
as rural by the Secretary.
`(3) INDIAN TRIBE- The term `Indian tribe' has the meaning given the term
in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
`(4) INTERMEDIARY- The term `intermediary' means an entity that--
`(A) makes and services microloans to eligible small business concerns;
and
`(B) provides marketing, management, and technical assistance to borrowers,
including--
`(i) a microenterprise development organization or program;
`(ii) a private, nonprofit community development corporation;
`(iii) a consortium of private, nonprofit community development corporations
or other entities;
`(iv) a quasi-governmental economic development entity, other than
a State, county, municipal government, or any agency of a State, county,
or municipal government; or
`(v) an agency of, or a nonprofit entity established by, a tribal
government.
`(5) LOW-INCOME INDIVIDUAL- The term `low-income individual' means an
individual with an income (adjusted for family size) of not more than
the greater of--
`(A) 80 percent of median income of an area; or
`(B) 80 percent of the statewide nonmetropolitan area median income.
`(6) MICROCREDIT- The term `microcredit' means a business loan or loan
guarantee of not more than $50,000 provided to a rural entrepreneur.
`(7) MICROENTERPRISE- The term `microenterprise' means a sole proprietorship,
joint enterprise, limited liability company, partnership, corporation,
or cooperative that--
`(A) has 5 or fewer employees; and
`(B) is unable to obtain sufficient credit, equity, or banking services
elsewhere, as determined by the Secretary.
`(8) MICROENTERPRISE DEVELOPMENT ORGANIZATION-
`(A) IN GENERAL- The term `microenterprise development organization'
means a nonprofit entity that provides training and technical assistance
to rural entrepreneurs and access to capital or another service described
in subsection (b) to rural entrepreneurs.
`(B) INCLUSIONS- The term `microenterprise development organization'
includes an organization described in subparagraph (A) with a demonstrated
record of delivering services to economically disadvantaged microentrepreneurs.
`(9) MICROENTERPRISE DEVELOPMENT PROGRAM- The term `microenterprise development
organization' means a program administered by a organization serving an
eligible area.
`(10) MICROENTREPRENEUR- The term `microentrepreneur' means the owner,
operator, or developer of a microenterprise.
`(11) PROGRAM- The term `program' means the rural entrepreneur and microenterprise
program established under subsection (b)(1).
`(12) QUALIFIED ORGANIZATION- The term `qualified organization' means--
`(A) a microenterprise development organization or microenterprise development
program that has a demonstrated record of delivering microenterprise
services to rural entrepreneurs, as demonstrated by the development
of an effective plan of action and the possession of necessary resources
to deliver microenterprise services to rural entrepreneurs effectively,
as determined by the Secretary;
`(B) an intermediary that has a demonstrated record of delivery assistance
to microenterprise development organizations or microenterprise development
programs;
`(C) a microenterprise development organization or microenterprise development
program that--
`(i) serves rural entrepreneurs; and
`(ii) enters into an agreement with a local community, in conjunction
with a State or local government or Indian tribe, to provide assistance
described in subsection (b);
`(D) an Indian tribe, the tribal government of which certifies to the
Secretary that no microenterprise development organization or microenterprise
development program exists under the jurisdiction of the Indian tribe;
`(E) a group of 2 or more organizations or Indian tribes described in
subparagraph (A), (B), (C), or (D) that agree to act jointly as a qualified
organization under this section; or
`(F) for purposes of subsection (b), an institution of higher education
(as defined in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a))).
`(13) RURAL CAPACITY BUILDING SERVICE- The term `rural capacity building
service' means a service provided to an organization that--
`(A) is, or is in the process of becoming, a microenterprise development
organization or microenterprise development program; and
`(B) serves eligible areas for the purpose of enhancing the ability
of the organization to provide training, technical assistance, and other
related services to rural entrepreneurs.
`(14) RURAL ENTREPRENEUR- The term `rural entrepreneur' means a microentrepreneur,
or prospective microentrepreneur--
`(A) the principal place of business of which is in an eligible area;
and
`(B) that is unable to obtain sufficient training, technical assistance,
or microcredit elsewhere, as determined by the Secretary.
`(15) SECRETARY- The term `Secretary' means the Secretary of Agriculture,
acting through the Administrator of the Rural Business-Cooperative Service.
`(16) SMALL BUSINESS CONCERN- The term `small business concern' has the
meaning given the term in section 3 of the Small Business Act (15 U.S.C.
632).
`(17) TRAINING AND TECHNICAL AND FINANCIAL ASSISTANCE-
`(A) IN GENERAL- The term `training and technical and financial assistance'
means assistance provided to rural entrepreneurs to develop the skills
the rural entrepreneurs need to plan, market, and manage their own business.
`(B) INCLUSIONS- The term `training and technical and financial assistance'
includes assistance provided for the purpose of--
`(i) enhancing business planning, marketing, management, or financial
management skills; and
`(ii) obtaining microcredit.
`(18) TRIBAL GOVERNMENT- The term `tribal government' means the governing
body of an Indian tribe.
`(b) Rural Entrepreneur and Microenterprise Program-
`(1) IN GENERAL- From amounts made available under subsection (h), the
Secretary shall establish a rural entrepreneurship and microenterprise
program.
`(2) PURPOSES- The purposes of the program are--
`(A) to make grants to qualified organizations and intermediaries to
be used for marketing, management, and technical assistance to the target
population of the program;
`(B) to make grants to assist in researching and developing the best
practices in delivering and evaluating training, technical assistance,
and microcredit programs to rural entrepreneurs;
`(C) to make direct and guaranteed loans to qualified organizations
and intermediaries for the purpose of making microloans to low-income
individuals and moderate-income individuals in rural areas to establish
and sustain new small business concerns; and
`(D) to carry out such other projects and activities as the Secretary
determines are consistent with this section.
`(3) ALLOCATION- From the total amount of funds made available for a fiscal
year to make grants and loans under this section, the Secretary shall
ensure that not less than 50 percent of funds are used to carry out activities
described in subparagraphs (A) and (B) of paragraph (2).
`(1) IN GENERAL- A qualified organization or intermediary shall be eligible
to receive a grant under the program to provide marketing, management,
and technical assistance to small business concerns.
`(2) GRANT LIMITATIONS- No single qualified organization may receive more
than 10 percent of the total funds that are made available for a fiscal
year to carry out this section.
`(3) SUBGRANTS- Subject to such regulations as the Secretary may promulgate,
a qualified organization that receives a grant under this section may
use the grant to provide assistance to other qualified organizations,
including small or emerging qualified organizations.
`(d) Loan Administration-
`(1) IN GENERAL- In carrying out the program, the Secretary may provide
loans to qualified organizations and intermediaries to provide microcredit
to rural entrepreneurs and microenterprises, under such terms and conditions
as the Secretary may prescribe.
`(2) LOAN DURATION- Loans made under this paragraph shall be for a term
of 10 years.
`(3) APPLICATION INTEREST RATES- Loans made under this paragraph to a
qualified organization or intermediary shall bear an interest rate equal
to 2 percentage points below the rate determined by the Secretary of the
Treasury for obligations of the United States with a period of maturity
of 5 years, adjusted to the nearest one-eighth of 1 percent.
`(e) Administrative Expenses- Not more than 15 percent of the total amount
of assistance received by a qualified organization of intermediary for a
fiscal year under this section may be used for administrative expenses.
`(f) Targeted Populations- In making grants and loans under this section,
the Secretary shall ensure, to the maximum extent practicable, that--
`(1) grant and loan recipients include qualified organizations and intermediaries--
`(A) of varying sizes; and
`(B) that serve racially, ethnically and geographically diverse populations,
and
`(2) not less than 50 percent of the grants and loans made under this
section are used to benefit low-income individuals, women, or minorities,
as identified by the Secretary, including individuals residing on Indian
reservations.
`(1) FEDERAL SHARE- The Federal share of the cost of a project carried
out using funds from a grant under this section shall be 75 percent.
`(2) FORM OF NON-FEDERAL SHARE- The non-Federal share of the cost of a
project described in paragraph (1) may be provided--
`(A) by public funds, including funds obtained through other Federal,
State and local fees and grants; or
`(h) Funding- There is authorized to be appropriated $30,000,000 to carry
out this section.'.
TITLE III--RURAL REGIONAL INVESTMENT INITIATIVE
SEC. 301. RURAL REGIONAL INVESTMENT INITIATIVE.
(a) Definition of Eligible Area- Section 385B of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009dd-1) is amended by striking paragraph
(3) and inserting the following:
`(3) ELIGIBLE AREA- The term `eligible area' means a nonmetropolitan county
that, based on information contained in the 2000 decennial census, has
a population that resides in areas more than 50 percent of which are classified
as rural by the Secretary.'.
(b) Composition of Regional Boards- Section 385C(b)(2)(A) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009dd-2(b)(2)(A)) is amended by
striking clauses (vi) and (vii) and inserting the following:
`(vi) academic institutions, including community colleges;
`(vii) faith-based organizations;
`(viii) other entities and organizations, as determined by the Regional
Board; and
`(ix) consortia of entities and organizations described in clauses
(i) through (viii).'.
(c) Composition of National Board on Rural America- Section 385D(b)(1)(A)
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009dd-3(b)(1)(A))
is amended by striking clauses (iv) through (vii) and inserting the following:
`(iv) representatives of State and local governments;
`(v) representatives of the rural philanthropic community;
`(vi) representatives of Indian tribes (as defined in section 4 of
the Indian Self-Determination and Education Assistance Act (25 U.S.C.
450b));
`(vii) representatives of nonprofit organizations;
`(viii) representatives of academic institutions, including community
colleges; and
`(ix) representatives of such other entities or organizations as the
Secretary considers to be appropriate.'.
(d) Amount of Grants- Section 385E of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009dd-4) is amended--
(1) in subsection (a), by striking `$100,000,000' and inserting `$200,000,000
each year'; and
(A) in the matter before paragraph (1), by inserting `each year' after
`shall use';
(B) in paragraph (1), by striking `$8,000,000' and inserting `$20,000,000';
(i) by striking `$87,000,000' and inserting `$135,000,000'; and
(ii) by striking `and' at the end;
(D) by redesignating paragraph (3) as paragraph (4); and
(E) by inserting after paragraph (2) the following:
`(3) not less than $40,000,000 to carry out section 385I; and'.
(e) Rural Strategic Investment Planning Grants- Section 385F of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009dd-5) is amended--
(1) by striking subsection (c) and inserting the following:
`(c) Preferences- In awarding planning grants, the National Board shall
give a preference to planning grants that will be used--
`(1) to address community capacity building and community sustainability;
`(2) to incorporate other Federal agency development plans; or
`(3) to leverage available public and private assets.'; and
(2) in subsection (d), by striking `$100,000' and inserting `$250,000'.
(f) Innovation Grants- Section 385G of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009dd-6) is amended--
(1) in subsection (a), by inserting `to be administered by the Office
of Rural Development' after `innovation grants';
(2) in subsection (d)(7), by inserting `, including poverty alleviation'
before the period at the end; and
(A) by redesignating paragraph (4) as paragraph (5); and
(B) by inserting after paragraph (3) the following:
`(4) NON-FEDERAL ORGANIZATIONS- A Regional Board may select 1 or more
non-Federal organizations to manage and use innovation grants approved
and awarded under this section.'.
SEC. 302. RURAL REGIONAL ENTREPRENEURSHIP PROGRAM.
Subtitle I of the Consolidated Farm and Rural Development Act (7 U.S.C.
2009dd et seq.) is amended by adding at the end the following:
`SEC. 385I. RURAL REGIONAL ENTREPRENEURSHIP PROGRAM.
`(a) Definition of Rural Entrepreneur- The term `rural entrepreneur' has
the meaning given the term in section 365(a).
`(b) Program- The Secretary shall establish a rural regional entrepreneurship
program under which the Secretary shall provide grants to stimulate rural
entrepreneurship and provide technical assistance, research, and evaluation
to rural entrepreneurs.
`(1) IN GENERAL- From amounts made available under subsection (f), the
Secretary shall use $15,000,000 for each fiscal year to make block grants
to States in accordance with this subsection.
`(2) AMOUNT OF GRANT- A grant to a State under this subsection for any
fiscal year shall be in an amount that is, as determined by the National
Board--
`(A) not more than $400,000; and
`(B) not less than $200,000.
`(3) COST SHARE- To be eligible to receive a grant under this subsection,
a State shall match any grant funds received under this subsection with
an equal or greater amount of non-Federal funds.
`(4) USE OF FUNDS- A State shall use funds received under this subsection
to support multi-county entrepreneurship development systems focused on
eligible areas in consultation with the RUPRI Center for Rural Entrepreneurship.
`(d) Competitive Regional Entrepreneurship Grants-
`(1) IN GENERAL- From amounts made available under subsection (f), the
Secretary shall--
`(A) transfer $15,000,000 for each fiscal year to the National Board
to make regional entrepreneurship grants to rural entrepreneurs through
a competitive application process; and
`(B) use at least $10,000,000 to make grants to successful applicants
identified as regional intermediaries under subsection (e)(3).
`(2) ADMINISTRATION- The Under Secretary for Rural Development shall administer
grants under this subsection.
`(e) Center for Rural Entrepreneurship-
`(1) IN GENERAL- From amounts made available under subsection (f), the
Secretary shall transfer $10,000,000 for each fiscal year to the RUPRI
Center for Rural Entrepreneurship (referred to in this subsection as the
`Center') for use in accordance with this subsection.
`(2) RESEARCH, EVALUATION, AND DATA COLLECTION AND ANALYSIS-
`(A) IN GENERAL- Of the amount transferred to the Center under paragraph
(1), the Center shall use $5,000,000 for each fiscal year to carry out
research, evaluation, and data collection and analysis programs, of
which not less than $500,000 for each fiscal year shall be used to enter
into contracts, in accordance with a national research agenda approved
by the National Board, with each of--
`(i) the regional rural development centers described in section 1670(a)
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5923(a)); and
`(ii) the Economic Research Service.
`(B) COORDINATION AND FOCUS OF PROGRAMS- The programs carried out under
this paragraph shall--
`(i) be coordinated by the Center across a broad range of higher education
institutions and research organizations; and
`(ii) focus on providing insights and creating opportunities for sustained
entrepreneurship development in rural areas of the United States.
`(3) REGIONAL INTERMEDIARIES- Of the amount transferred to the Center
under paragraph (1), the Center shall use $4,000,000 for each fiscal year
to establish and maintain a nationwide network of regional intermediaries
with the capacity and tools--
`(A) to provide effective entrepreneurship development information,
training, and technical assistance to rural regions and communities
in the United States; and
`(B) to enhance the effectiveness of organizations that provide direct
technical assistance and training services to rural entrepreneurs.
`(4) MANAGEMENT ACTIVITIES AND REPORTS- Of the amount transferred to the
Center under paragraph (1), the Center shall use $1,000,000 for each fiscal
year--
`(A) to enhance and sustain the capacity and ability of the Center to
direct and manage the programs and activities described in paragraphs
(1), (2), and (3); and
`(i) to the National Board, an annual report that describes those
programs and activities carried out during the year covered by the
report; and
`(ii) to the Secretary, an annual report that describes the state
of entrepreneurship in the United States during the year covered by
the report.
`(5) AVAILABILITY OF FUNDS; CONTRACTS-
`(A) AVAILABILITY OF FUNDS- Funds made available under this subsection
shall remain available until expended, including for any purpose under
this section.
`(B) CONTRACTS- Each contract entered into by the Center and an individual
or entity shall be based on the performance of the individual or entity.
`(f) Funding- Of funds made available under section 385E(b)(3), for each
of fiscal years 2008 through 2012, the Secretary shall use to carry out
this section $40,000,000, to remain available until expended.'.
TITLE IV--REGIONAL SKILLS ALLIANCES
SEC. 401. FINDINGS.
(1) many small businesses lack the financial capacity to support the training
of high-skilled workers;
(2) many high-tech companies concerned about worker training consider
recruiting employees from overseas because a shortage of information technology
workers remains a significant problem;
(3) too many highly educated workers in underserved communities do not
have the specialized skills needed to meet the needs of local businesses;
and
(4) regional skills alliances bring businesses and 4-year colleges and
universities and community colleges together to help develop and implement
effective programs to make sure workers have the training needed to compete
in the modern workplace.
SEC. 402. DEFINITION OF SECRETARY.
In this title, the term `Secretary' means the Secretary of Labor.
Subtitle A--Skill Grants
SEC. 411. AUTHORIZATION.
(a) In General- The Secretary, in consultation with the Secretary of Commerce,
shall award grants to eligible entities described in subsection (b) to assist
the entities to improve the job skills necessary for employment in specific
industries.
(b) Eligible Entities Described-
(1) IN GENERAL- An eligible entity described in this subsection is a consortium
that--
(A) shall consist of representatives from not less than 5 businesses,
or a lesser number of businesses if such lesser number of businesses
employs at least 30 percent of the employees in the industry involved
in the region (or a nonprofit organization that represents such businesses);
(B) may consist of representatives from--
(ii) State and local government; and
(iii) educational institutions;
(C) is established to serve 1 or more particular industries; and
(D) is established to serve an eligible area.
(2) ELIGIBLE AREA- The term `eligible area' means a nonmetropolitan county
that, based on information contained in the 2000 decennial census--
(A) has a population that resides in areas more than 50 percent of which
are classified as rural by the Secretary of Agriculture; and
(B) had an average employment percentage change during the period of
calendar years 2001 through 2004 that was less than the national average
employment percentage change (as determined by the Bureau of Economic
Analysis).
(3) MAJORITY OF REPRESENTATIVES- A majority of the representatives comprising
the consortium shall be representatives described in paragraph (1)(A).
(c) Priority for Small Businesses- In providing grants under subsection
(a), the Secretary shall give priority to an eligible entity if a majority
of representatives forming the entity represent small-business concerns
(as defined in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).
(d) Maximum Amount of Grant- The amount of a grant awarded to an eligible
entity under subsection (a) may not exceed $1,000,000 for any fiscal year.
SEC. 412. USE OF AMOUNTS.
(a) In General- The Secretary may not award a grant under section 411 to
an eligible entity unless the entity agrees to use amounts received from
the grant to improve the job skills necessary for employment by businesses
in the industry with respect to which the entity was established.
(1) IN GENERAL- In carrying out the program described in subsection (a),
the eligible entity may provide for--
(A) an assessment of training and job skill needs for the industry;
(B) the development of a sequence of skill standards that are benchmarked
to advanced industry practices;
(C) the development of curriculum and training methods, including, where
appropriate, e-learning or technology-based training;
(D) the purchase, lease, or receipt of donations of training equipment;
(E) the identification of training providers and the development of
partnerships between the industry and educational institutions, including
community colleges;
(F) the development of apprenticeship programs;
(G) the development of training programs for workers, including dislocated
workers;
(H) the development of training plans for businesses; and
(I) the development of the membership of the entity.
(2) ADDITIONAL REQUIREMENT- In carrying out the program described in subsection
(a), the eligible entity shall provide for the development and tracking
of performance outcome measures for the program and the training providers
involved in the program.
(c) Administrative Costs- The eligible entity may use not more than 10 percent
of the amount of a grant to pay for administrative costs associated with
the program described in subsection (a).
SEC. 413. REQUIREMENT OF MATCHING FUNDS.
(a) In General- The Secretary may not award a grant under section 411 to
an eligible entity unless the entity agrees that the entity will make available
non-Federal contributions toward the costs of carrying out activities under
the grant in an amount that is not less than $2 for each $1 of Federal funds
provided under the grant, of which--
(1) $1 shall be provided by the businesses participating in the entity;
and
(2) $1 shall be provided by the State or local government involved.
(1) EQUIPMENT- Equipment donations to facilities that are not owned or
operated by the members of the eligible entity involved and that are shared
by the members may be included in determining compliance with subsection
(a).
(A) IN GENERAL- An eligible entity may not include in-kind contributions
in complying with the requirement of subsection (a).
(B) CONSIDERATION- The Secretary may consider donations described in
subparagraph (A) in ranking applications.
SEC. 414. LIMIT ON ADMINISTRATIVE EXPENSES.
The Secretary may use not more than 5 percent of the amounts made available
to carry out this title to pay the Federal administrative costs associated
with awarding grants under this title.
SEC. 415. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this subtitle--
(1) $50,000,000 for each of fiscal years 2008 through 2012; and
(2) such sums as are necessary for each fiscal year thereafter.
Subtitle B--Planning Grants
SEC. 421. AUTHORIZATION.
(a) In General- The Secretary, in consultation with the Secretary of Commerce,
shall award grants to States to enable the States to assist businesses,
organizations, and agencies described in section 411(b) in conducting planning
to form consortia described in that section.
(b) Maximum Amount of Grant- The amount of a grant awarded to a State under
subsection (a) may not exceed $500,000 for any fiscal year.
SEC. 422. APPLICATION.
The Secretary may not award a grant under section 421 to a State unless
the State submits to the Secretary an application at such time, in such
manner, and containing such information as the Secretary may reasonably
require.
SEC. 423. REQUIREMENT OF MATCHING FUNDS.
The Secretary may not award a grant under section 421 to a State unless
the State agrees that the State will make available non-Federal contributions
toward the costs of carrying out activities under this subtitle in an amount
that is not less than $1 for each $1 of Federal funds provided under the
grant.
SEC. 424. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this subtitle $5,000,000
for fiscal year 2008.
TITLE V--SMALL BUSINESS JOBS TAX CREDIT
SEC. 501. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.
(a) In General- Section 51(d)(1) of the Internal Revenue Code of 1986 (relating
to members of targeted groups) is amended by striking `or' at the end of
subparagraph (H), by striking the period at the end of subparagraph (I)
and inserting `, or', and by adding at the end the following:
`(J) a qualified small business employee.'.
(b) Qualified Small Business Employee- Section 51(d) of the Internal Revenue
Code of 1986 is amended by redesignating paragraphs (11) through (13) as
paragraphs (12) through (14), respectively, and by inserting after paragraph
(10) the following:
`(11) QUALIFIED SMALL BUSINESS EMPLOYEE-
`(A) IN GENERAL- The term `qualified small business employee' means
any individual--
`(i) hired by a qualified small business located in an eligible area,
or
`(ii) hired by a qualified small business and who is certified by
the designated local agency as residing in such an eligible area.
`(B) QUALIFIED SMALL BUSINESS- The term `qualified small business' has
the meaning given the term `small employer' by section 4980D(d)(2).
`(C) ELIGIBLE AREA- The term `eligible area' means a nonmetropolitan
county that, based on information contained in the 2000 decennial census--
`(i) has a population that resides in areas more than 50 percent of
which are classified as rural by the Secretary of Agriculture; and
`(ii) had an average employment percentage change during the period
of calendar years 2001 through 2004 that was less than the national
average employment percentage change (as determined by the Bureau
of Economic Analysis).
`(D) NUMBER OF DESIGNATIONS- The Secretary, after consultation with
the Secretary of Housing and Urban Development and the Secretary of
Agriculture, may not designate more than 400 eligible areas.
`(E) SPECIAL RULES FOR DETERMINING AMOUNT OF CREDIT- For purposes of
applying this subpart to wages paid or incurred to any qualified small
business employee--
`(i) subsection (a) shall be applied by substituting `20 percent of
the qualified first, second, third, fourth, or fifth year wages' for
`40 percent of the qualified first year wages', and
`(ii) in lieu of paragraphs (2) and (3) of subsection (b), the following
definitions and special rule shall apply:
`(I) QUALIFIED FIRST-YEAR WAGES- The term `qualified first-year
wages' means, with respect to any individual, qualified wages attributable
to service rendered during the 1-year period beginning with the
day the individual begins work for the employer.
`(II) QUALIFIED SECOND-YEAR WAGES- The term `qualified second-year
wages' means, with respect to any individual, qualified wages attributable
to service rendered during the 1-year period beginning on the day
after the last day of the 1-year period with respect to such individual
determined under subclause (I).
`(III) QUALIFIED THIRD-YEAR WAGES- The term `qualified third-year
wages' means, with respect to any individual, qualified wages attributable
to service rendered during the 1-year period beginning on the day
after the last day of the 1-year period with respect to such individual
determined under subclause (II).
`(IV) QUALIFIED FOURTH-YEAR WAGES- The term `qualified fourth-year
wages' means, with respect to any individual, qualified wages attributable
to service rendered during the 1-year period beginning on the day
after the last day of the 1-year period with respect to such individual
determined under subclause (III).
`(V) QUALIFIED FIFTH-YEAR WAGES- The term `qualified fifth-year
wages' means, with respect to any individual, qualified wages attributable
to service rendered during the 1-year period beginning on the day
after the last day of the 1-year period with respect to such individual
determined under subclause (IV).
`(VI) ONLY FIRST $15,000 OF WAGES PER YEAR TAKEN INTO ACCOUNT- The
amount of the qualified first, second, third, fourth, and fifth
year wages which may be taken into account with respect to any individual
shall not exceed $15,000 per year.'.
(c) Effective Date- The amendments made by this section shall apply to individuals
who begin work for the employer after the date of the enactment of this
Act.
END
