Small Business Contracting Programs Parity Act of 2009

Mr. President, I rise to recognize the sacrifice of the thousands of men and women serving in harm's way overseas and to introduce legislation that will help these brave men and women when they return home.

I recently led a congressional delegation to Afghanistan. During my visit, I was deeply impressed by the service and dedication of our brave troops. These men and women work under the most difficult conditions.

They serve every day. Weekends, holidays, anniversaries, and birthdays. They serve 24 hours a days, seven days a week.

Our troops are some of the hardest working Americans. They patrol the mountains, fix trucks and fire artillery. They are not only warriors, but diplomats as well. They organize meetings known as shuras with local leaders and village elders. I was awestruck by our troops' professionalism, courage and tenacity.

Many of these troops are from Montana. Montanans volunteer for duty at among the highest rate in the country. Montana's military recruiting rates are roughly 50 percent higher than the national average. Tragically, Montana has the highest per capita rate of service members killed or injured fighting overseas since 9/11.

While in Afghanistan I met a young Army captain named Casey Thoreen. Casey commands an infantry company that is working to improve security in the Maiwand district of Kandahar Province.

A reporter recently wrote a piece about Casey that described him as the ``King of Maiwand'' because of his important efforts to improve the lives of those that live there.

Casey has developed close working relationships with the local district leader and other important power brokers. We couldn't dream of succeeding in Afghanistan without dedicated talented officers like this young man. Skilled efforts such as his are the lynchpin of our mission in Afghanistan.

My congressional colleagues and I have worked hard to give our soldiers, sailors, airmen, and marines all the tools necessary to succeed in combat. Now, more than ever, it is imperative that we give our troops the tools to succeed upon their return home.

President George Washington once said ``The willingness with which our young people are likely to serve in any war, no matter how justified, shall be directly proportional to how they perceive the veterans of earlier wars were treated and appreciated by their nation.''

President Washington's words are a serious reminder of our obligation to Casey and all of the brave men and women serving our country overseas. We have a solemn obligation to our veterans when they return home. And recent suicide statistics and veteran unemployment data make it clear that we have a long way to go.

For veterans between the ages of 20 and 24, the suicide rate is roughly two to four times higher than non-veterans the same age.

A recent survey found that only 13 percent of Iraq and Afghanistan veterans ``strongly agreed'' that their transition home was going well. And just 9 percent ``strongly agreed'' the needs of their family were being met.

The unemployment rate among veterans who have served in the military since September 2001 far exceeds that of their peers. According to the American Legion, nearly 15 percent of post 9/11 veterans are unemployed.

The rate of unemployment for veterans aged 18 to 24 is over 30 percent--nearly double the rate for non-veterans the same age. These numbers are unacceptable.

I want to applaud my friend and colleague, Senator Patty Murray, for the important work she has done to address this problem. She recently introduced the Comprehensive Veterans Employment Act of 2010.

The bill seeks to allow the GI Bill to pay for on-the-job training and apprenticeships. I strongly support her efforts.

Senator Murray held a roundtable discussion on veterans' employment earlier this year. During the discussion she learned that some veterans were deliberately taking their military service off their resumes when applying for work. These veterans feared employers might think they suffered from post-traumatic stress due to time in combat.

This discussion is a telling sign that we need to do a better job of welcoming our troops home from war. I can't think of anything more important to readjusting to life back home than having meaningful employment.

Our veterans are national assets. The skills veterans have learned in the military are valuable in the civilian workplace and in communities across America.

History has proven this to be true. Just look to the boom years in the late 1940s and 1950s. America welcomed back millions of World War Two veterans into the workforce. The leadership and strength of our veterans fueled the unprecedented growth and strength of our Nation. I expect nothing less from this generation of veterans as well.

That is why Senator Grassley and I are introducing the Veteran Employment Transition Act of 2010. This legislation will reward employers that hire any veteran who has recently completed their service in the military with up to a $6,000 tax credit.

The bill simplifies the administrative process that currently exists for the Work Opportunity Tax Credit for hiring a recently discharged veteran. Any recently discharged veteran with discharge paperwork is eligible. This includes those men and women who were activated by their states as members of the National Guard.

Enacting this legislation is just first step. I want to ensure all veterans understand the benefits of this tax credit. That is I am working with the Iraq and Afghanistan Veterans of America, Veterans of Foreign Wars, and other Veteran Service Organizations to help veterans use this tax benefit as a tool to find good paying jobs.

The day after this bill becomes law, the VFW will notify their members on how to use the credit. The Iraq and Afghanistan Veterans of America will post a webcast to their members to explain how best to take advantage of this benefit.

The Iraq and Afghanistan Veterans of America will also publish a document online that a veteran can print and hand in with a resume when applying for a job. This document will explain to employers how they can take advantage of the credit if they hire the veteran.

Briefly, I want to thank my first Defenders of Freedom Fellow, Iraq veteran and Montana-native Charlie Cromwell. As a legislative fellow in my office, Charlie worked hard to create and advance this bill.

I created the Defenders of Freedom Fellowship so that Montana veterans could work on legislation that helps their fellow veterans. The legislation I am introducing today is the perfect example of what this fellowship was intended to accomplish.

I encourage all interested Montana veterans to contact my office for more information. It will take this kind of team work to provide the support our veterans need when they come home from war. It is an honor to introduce

this legislation and I look forward to its quick passage in the weeks to come.

Mr. President, I rise to recognize the sacrifice of the thousands of men and women serving in harm's way overseas and to introduce legislation that will help these brave men and women when they return home.

I recently led a congressional delegation to Afghanistan. During my visit, I was deeply impressed by the service and dedication of our brave troops. These men and women work under the most difficult conditions.

They serve every day. Weekends, holidays, anniversaries, and birthdays. They serve 24 hours a days, seven days a week.

Our troops are some of the hardest working Americans. They patrol the mountains, fix trucks and fire artillery. They are not only warriors, but diplomats as well. They organize meetings known as shuras with local leaders and village elders. I was awestruck by our troops' professionalism, courage and tenacity.

Many of these troops are from Montana. Montanans volunteer for duty at among the highest rate in the country. Montana's military recruiting rates are roughly 50 percent higher than the national average. Tragically, Montana has the highest per capita rate of service members killed or injured fighting overseas since 9/11.

While in Afghanistan I met a young Army captain named Casey Thoreen. Casey commands an infantry company that is working to improve security in the Maiwand district of Kandahar Province.

A reporter recently wrote a piece about Casey that described him as the ``King of Maiwand'' because of his important efforts to improve the lives of those that live there.

Casey has developed close working relationships with the local district leader and other important power brokers. We couldn't dream of succeeding in Afghanistan without dedicated talented officers like this young man. Skilled efforts such as his are the lynchpin of our mission in Afghanistan.

My congressional colleagues and I have worked hard to give our soldiers, sailors, airmen, and marines all the tools necessary to succeed in combat. Now, more than ever, it is imperative that we give our troops the tools to succeed upon their return home.

President George Washington once said ``The willingness with which our young people are likely to serve in any war, no matter how justified, shall be directly proportional to how they perceive the veterans of earlier wars were treated and appreciated by their nation.''

President Washington's words are a serious reminder of our obligation to Casey and all of the brave men and women serving our country overseas. We have a solemn obligation to our veterans when they return home. And recent suicide statistics and veteran unemployment data make it clear that we have a long way to go.

For veterans between the ages of 20 and 24, the suicide rate is roughly two to four times higher than non-veterans the same age.

A recent survey found that only 13 percent of Iraq and Afghanistan veterans ``strongly agreed'' that their transition home was going well. And just 9 percent ``strongly agreed'' the needs of their family were being met.

The unemployment rate among veterans who have served in the military since September 2001 far exceeds that of their peers. According to the American Legion, nearly 15 percent of post 9/11 veterans are unemployed.

The rate of unemployment for veterans aged 18 to 24 is over 30 percent--nearly double the rate for non-veterans the same age. These numbers are unacceptable.

I want to applaud my friend and colleague, Senator Patty Murray, for the important work she has done to address this problem. She recently introduced the Comprehensive Veterans Employment Act of 2010.

The bill seeks to allow the GI Bill to pay for on-the-job training and apprenticeships. I strongly support her efforts.

Senator Murray held a roundtable discussion on veterans' employment earlier this year. During the discussion she learned that some veterans were deliberately taking their military service off their resumes when applying for work. These veterans feared employers might think they suffered from post-traumatic stress due to time in combat.

This discussion is a telling sign that we need to do a better job of welcoming our troops home from war. I can't think of anything more important to readjusting to life back home than having meaningful employment.

Our veterans are national assets. The skills veterans have learned in the military are valuable in the civilian workplace and in communities across America.

History has proven this to be true. Just look to the boom years in the late 1940s and 1950s. America welcomed back millions of World War Two veterans into the workforce. The leadership and strength of our veterans fueled the unprecedented growth and strength of our Nation. I expect nothing less from this generation of veterans as well.

That is why Senator Grassley and I are introducing the Veteran Employment Transition Act of 2010. This legislation will reward employers that hire any veteran who has recently completed their service in the military with up to a $6,000 tax credit.

The bill simplifies the administrative process that currently exists for the Work Opportunity Tax Credit for hiring a recently discharged veteran. Any recently discharged veteran with discharge paperwork is eligible. This includes those men and women who were activated by their states as members of the National Guard.

Enacting this legislation is just first step. I want to ensure all veterans understand the benefits of this tax credit. That is I am working with the Iraq and Afghanistan Veterans of America, Veterans of Foreign Wars, and other Veteran Service Organizations to help veterans use this tax benefit as a tool to find good paying jobs.

The day after this bill becomes law, the VFW will notify their members on how to use the credit. The Iraq and Afghanistan Veterans of America will post a webcast to their members to explain how best to take advantage of this benefit.

The Iraq and Afghanistan Veterans of America will also publish a document online that a veteran can print and hand in with a resume when applying for a job. This document will explain to employers how they can take advantage of the credit if they hire the veteran.

Briefly, I want to thank my first Defenders of Freedom Fellow, Iraq veteran and Montana-native Charlie Cromwell. As a legislative fellow in my office, Charlie worked hard to create and advance this bill.

I created the Defenders of Freedom Fellowship so that Montana veterans could work on legislation that helps their fellow veterans. The legislation I am introducing today is the perfect example of what this fellowship was intended to accomplish.

I encourage all interested Montana veterans to contact my office for more information. It will take this kind of team work to provide the support our veterans need when they come home from war. It is an honor to introduce

this legislation and I look forward to its quick passage in the weeks to come.

Mr. President, today I am introducing a bill that would charge a reinspection fee for goods that fail FDA inspection for good manufacturing practices. Currently, businesses do not have to pay for the second inspection if they fail. Essentially, then, the FDA is absorbing this extra cost. This Nation faces difficult enough choices without subsidizing private companies that fail basic inspections. I am pleased to credit the Bush administration for originally proposing this fee, which is again proposed in President Obama's fiscal year 2010 budget. This fee carries proposed savings of an estimated $24 million per year, and could save as much as $115 million over 5 years.

We must ensure that U.S. taxpayer money is being used efficiently and effectively, and this measure would help in our ongoing efforts to streamline government programs and reduce the Federal budget deficit. FDA Commissioner Andrew von Eschenbach testified about these fees before the House Agriculture, Rural Development, and FDA Appropriations Subcommittee in 2006. He believes, and I agree, that the reinspection fee will motivate businesses to comply with long-established health and safety standards. Businesses that do not meet Federal standards should bear the burden of the reinspection, rather than getting a free pass at the taxpayer's expense.

One of the main reasons I first ran for the U.S. Senate was to restore fiscal responsibility to the Federal budget. I have worked throughout my Senate career to eliminate wasteful spending and to reduce the budget deficit. Unless we return to fiscally responsible budgeting, Congress will saddle our nation's younger generations with an enormous financial burden for years to come. This bill is one small step in that direction.

Mr. President, today I join with Senator Kohl to introduce the Student Breakfast and Education Improvement Act as part of my continued efforts to improve student achievement in our Nation's schools. One part of student performance that is often overlooked is nutrition, which can have a significant impact on student achievement. I know many of my colleagues share my support for school programs that help alleviate hunger for the most in-need students, such as the Free and Reduced Price Lunch Program, as well as those programs that provide more nutritious food, such as the Fresh Fruit and Vegetable Snack program.

I am sure that I am not the only member of this body who grew up hearing that breakfast is the most important meal of the day. I was lucky never to have to worry about going hungry, and my parents did not have to choose between giving their children lunch or breakfast. The fact is, that is a choice many parents do have to make today, even if they get the help of reduced price meals. The current economic difficulties and rising unemployment have only increased the burdens facing low income families in Wisconsin and around the country as they struggle to provide nutritious meals for their children.

The Student Breakfast and Education Improvement Act would provide grants for schools wishing to begin or expand universal school breakfast programs. Studies show that kids who eat breakfast perform better in school and

on tests, and they tend to be less disruptive to the class. I have heard many stories from teachers, school nurses, and other school officials over the years to confirm this. In fact, in my home State of Wisconsin, the Milwaukee Public Schools have been working with the Hunger Task Force for the past few years to implement universal school breakfast programs, which they have in place now in more than 80 schools. This program, which has expanded in its second year, has proven popular with students, teachers, and parents.

This bill would target the most in-need schools--those with 65 percent or more of students eligible for the free and reduced price lunch program--with the funds necessary to implement a universal free breakfast program. The grants, which could be used in a number of ways, aim to help schools overcome the numerous barriers faced in trying to create a school breakfast program.

Our Nation faces a series of pressing education challenges in its schools, including most significantly a large achievement gap and graduation rate gap among minority and low income students. After decades of civil rights struggles, public education should provide all our students with access to equal opportunities, but the quality of public education provided to students of color and low-income students in urban and rural Wisconsin and around the country still does not come close to affording many of these students an equal chance for success. Too often these students learn in crumbling and outdated buildings, they do not have the same access to high quality technology in their classrooms, they are taught by the least experienced teachers, and they often do not have adequate access to important resources like school counselors and nurses.

These and a number of other factors contribute to the achievement gap in our Nation's schools and the Federal Government can help to address this gap by promoting smarter and more flexible accountability structures and increased supports for schools during the upcoming reauthorization of the Elementary and Secondary Education Act. Congress should also help to address some of the many other issues facing our nation's students living in poverty issues that may not seem directly related to education, but impact the academic growth of students including hunger, affordable housing, and crime. This bill takes an important step to address hunger and also seeks to improve nutrition education by providing funds to expand school breakfast programs, boost collaboration between local farmers and schools, expand service- learning opportunities in our classrooms, and improve nutrition education programming for students.

In this economy, more and more parents are forced to make these kinds of decisions, and the school meal programs can provide a tremendous relief. As we look forward to reauthorizing the Child Nutrition Act, it is vital that we take stock of the successes and limitations of existing programs. School breakfast faces a number of hurdles that, quite simply, other school feeding programs do not. Chief of those is time. For some students, getting to school early is impossible; for some, the lure of breakfast is not a strong enough draw to get up earlier. These are problems that schools across the country are facing and solving with creativity and dedication. This legislation will help support the innovative work going on in some of our nation's schools and will help to scale up successful nutrition programs in other schools so that hopefully one day, none of America's students will start the school day hungry.

Mr. President, last year we were all transfixed by the non-stop news coverage of Hurricanes Gustav and Ike as they grew into monster storms, crossing the Caribbean and Gulf of Mexico and leaving a trail of misery in their wake. Ike, the third most destructive storm in the history of the U.S., made landfall in Galveston, Texas, and then tracked through Arkansas, Illinois, Indiana, Missouri, Ohio, and Pennsylvania, killing 112 people and causing more than $24 billion in damage.

Since 2003, hurricanes and other tropical cyclones have caused more than 2,000 deaths in the U.S. Forty percent of all hurricanes that make landfall in the U.S. hit Florida.

Insured losses from hurricanes average more than $5.2 billion per year. A recent study of hurricane-related damages over the last century suggests that economic losses will double every 10 years. With more than 50 percent of the U.S. population living within 50 miles of the coast, and with 180 million people visiting the coast annually, the risks to life and property are growing.

Hurricanes, however, do not just impact the coasts. These extreme events also have national consequences, such as increased fuel prices, displaced populations, and severe inland flooding.

The American public is increasingly aware of the potential for high recovery costs and financing of natural disaster losses. I cannot overstate the importance of prior preparation and insurance coverage for large catastrophic risks--including natural disasters such as hurricanes and earthquakes--as well as efforts to promote a stable, affordable catastrophic insurance market.

This is why today Senator Martinez and I are introducing four bills: the Commission on Catastrophic Disaster Risk and Insurance Act of 2009, S. 1487, the Policyholder Disaster Protection Act of 2009, S. 1486, the Catastrophe Savings Accounts Act of 2009, S. 1484, and the National Hurricane Research Initiative Act of 2009, 1485. These bills take a pro-active approach in addressing these natural catastrophe concerns.

The National Hurricane Research Initiative Act of 2009 will expand the scope of fundamental research on hurricanes. The bill is aimed at improving hurricane forecasting and tracking and helping us find better ways to mitigate their impact. The Act will establish a National Science Foundation (NSF) grant program for hurricane and tropical cyclone research and bring together a task force, jointly chaired by the National Oceanic and Atmospheric Administration, NOAA, the National Institute of Standards and Technology, NIST, and NSF.

The second bill, the Commission on Catastrophic Disaster Risk and Insurance Act of 2009, establishes the bipartisan Commission on Catastrophic Disaster Risk and Insurance. This commission will assess the condition of the property and casualty insurance and reinsurance markets in the aftermath of Hurricanes Katrina, Rita, and Wilma in 2005, as well as the four major hurricanes that struck the U.S. in 2004. It will also evaluate the country's ongoing exposure to earthquakes, volcanic eruptions, tsunamis, and floods. Finally, the commission will recommend and report legislative and regulatory changes that will improve the domestic and international financial health and competitiveness of property and casualty insurance markets, assuring the availability of adequate insurance when an insured event occurs, as well as the best possible range of insurance products at competitive prices.

The Policyholder Disaster Protection Act of 2009 amends the Internal Revenue Code to allow property and casualty insurance companies to create tax-exempt disaster protection funds and to make tax deductible contributions to those funds for the payment of policyholders' claims arising from certain catastrophic events, such as windstorms, earthquakes, fires, and floods.

Finally, the Catastrophe Savings Accounts Act of 2009 amends the Internal Revenue Code to create tax-exempt catastrophe savings accounts. Individuals could take tax-free distributions from these accounts to pay expenses resulting from a presidentially declared major disaster. The bill limits catastrophe savings account balances to $2,000 for individuals with homeowner insurance deductibles of not more than $1,000, and the lesser of $15,000 or twice the homeowner's insurance deductible for individuals with deductibles of more than $1,000.

As I mentioned at the beginning of my remarks, the entire country experiences financial losses when hurricanes hit. It is time for us to take the bull by the horns and pass legislation that plans in advance for these and other natural disasters.

As we are in the hurricane season, it will become painfully apparent just

how precarious a lot of the construction is, how precarious building codes are not being fairly and judiciously administered, and it will become evident what an economic disaster even a mild hurricane can cause when it hits the coast. And Lord knows, if the big one hits an urbanized part of the coast--and the big one is a category 4 or a category 5 hurricane--it is going to create economic chaos. It is going to cause the insurance industry to be on the brink of total collapse. And it will ultimately, just like Katrina, end up having the U.S. Government pay a major part of the economic bailout consequences of a natural disaster, such as a hurricane or an earthquake hitting the United States. We ought to get ahead of it and we ought to plan for it, and that is what this package of four bills Senator Martinez and I are offering will do.

Mr. President, I ask unanimous consent that the text of the bills be printed in the Record.

Mr. President, as Ranking Member of the Senate Committee on Small Business and Entrepreneurship, I rise to introduce this bill in order to correct disparities among the Small Business Administration's small business contracting programs. Building on my efforts to bring true parity to the program, this bill will create a more equitable and flexible method for federal agencies to fairly allocate federal procurement dollars to small business contractors across the nation. Earlier this year, I filed an amendment, cosponsored by my colleague from Maine, Senator Collins, to create parity as part of S. 454, the Weapon

Systems Acquisition Reform Act of 2009. Unfortunately, that amendment was not accepted.

For years it has been unclear to the acquisition community what, if any, the true order of preference is for determining which small business contracting program is at the top of the agency's priority list. The SBA's regulations state that there is parity among the programs, and this had been the general practice in effect until two Government Accountability Office decisions were released on September 19, 2008 and May 4, 2009.

The decisions stated that the Historically Underutilized Business Zone, HUBZone, program had preference over all other small business contracting programs. While the interpretation benefits HUBZone businesses, it comes at the expense of other vital small business contracting programs. This targeted bill provides equity for the SBA's small business contracting programs.

The bill provides Federal agencies with the necessary flexibility to satisfy their government-wide statutory small business contracting goals. This bill makes clear to purchasing agencies that contracting officers may award contracts to HUBZone, Service Disabled Veterans, 8(a), or women-owned firms with equal deference to each program. It would provide these agencies with the ability to achieve their goaling requirements equally through an award to a HUBZone firm, a service- disabled veteran-owned small business, and a small business participating in the 8(a) business development program. Of course this list will also include women-owned small businesses once the women's procurement program is fully implemented by the SBA.

In addition, this bill brings the SBA's contracting programs closer to true parity by giving HUBZones a subcontracting goal. HUBZones are the only small business contracting program without a subcontracting goal. In addition, the bill authorizes mentor protege programs modeled after those used in the 8(a) program for HUBZones, service-disabled veteran and women-owned firms.

The essence of true parity is where each program has an equal chance of competing and being selected for an award. During these difficult economic times, it is imperative that small business contractors possess an equal opportunity to compete for Federal contracts on the same playing field with each other.

I urge my colleagues on both sides of the aisle to support this bill.