[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3920 Reported in House (RH)]






                                                 Union Calendar No. 262
110th CONGRESS
  1st Session
                                H. R. 3920

                      [Report No. 110-414, Part I]

    To amend the Trade Act of 1974 to reauthorize trade adjustment 
 assistance, to extend trade adjustment assistance to service workers 
                   and firms, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 22, 2007

Mr. Rangel (for himself, Mr. Levin, Mr. McDermott, Mr. George Miller of 
      California, Mr. Smith of Washington, Mr. Stark, Mr. Neal of 
  Massachusetts, Mr. Lewis of Georgia, Mr. McNulty, Mr. Becerra, Mr. 
Pomeroy, Mrs. Jones of Ohio, Mr. Thompson of California, Mr. Larson of 
 Connecticut, Mr. Emanuel, Mr. Blumenauer, Mr. Kind, Mr. Pascrell, Ms. 
    Berkley, Mr. Crowley, Mr. Van Hollen, Mr. Meek of Florida, Ms. 
Schwartz, Mr. Davis of Alabama, Mrs. Tauscher, Mr. Baird, Mr. Bishop of 
 New York, Mr. Michaud, Ms. Wasserman Schultz, Mr. Courtney, Mr. Hare, 
 and Mr. Sestak) introduced the following bill; which was referred to 
 the Committee on Ways and Means, and in addition to the Committees on 
    Education and Labor and Energy and Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

                            October 29, 2007

   Additional sponsors: Ms. Woolsey, Ms. Harman, Mr. Etheridge, Mr. 
 Altmire, Mrs. Gillibrand, Mr. Sarbanes, Mr. Hinojosa, and Mr. Donnelly

                            October 29, 2007

    Reported from the Committee on Ways and Means with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            October 29, 2007

 Committees on Education and Labor and Energy and Commerce discharged; 
committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on October 
                               22, 2007]

_______________________________________________________________________

                                 A BILL


 
    To amend the Trade Act of 1974 to reauthorize trade adjustment 
 assistance, to extend trade adjustment assistance to service workers 
                   and firms, 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 ``Trade and 
Globalization Assistance Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

            TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

  Subtitle A--Trade Adjustment Assistance for Service Sector Workers; 
  Expansion of Covered Shifts in Production; Expansion of Downstream 
                      Secondary Worker Eligibility

Sec. 101. Extension of trade adjustment assistance to services sector; 
                            shifts in production.
Sec. 102. Determinations by Secretary of Labor.
Sec. 103. Monitoring and reporting relating to service sector.

         Subtitle B--Industry-Wide Trade Adjustment Assistance

Sec. 111. Industry-wide determinations.
Sec. 112. Notifications regarding affirmative determinations and 
                            safeguards.
Sec. 113. Notification to Secretary of Commerce.
Sec. 114. Restriction on eligibility for program benefits.

                      Subtitle C--Program Benefits

Sec. 121. Qualifying requirements for workers.
Sec. 122. Weekly amounts.
Sec. 123. Limitations on trade readjustment allowances; allowances for 
                            extended training and breaks in training.
Sec. 124. Special rules for calculation of eligibility period.
Sec. 125. Application of State laws and regulations on good cause for 
                            waiver of time limits or late filing of 
                            claims.
Sec. 126. Employment and case management services.
Sec. 127. Training.
Sec. 128. Prerequisite education; approved training programs.
Sec. 129. Eligibility for unemployment insurance and program benefits 
                            while in training.
Sec. 130. Administrative expenses and employment and case management 
                            services.
Sec. 131. Job search and relocation allowances.

                   Subtitle D--Health Care Provisions

Sec. 141. Modifications relating health insurance assistance for 
                            certain TAA and PBGC pension recipients.

                       Subtitle E--Wage Insurance

Sec. 151. Reemployment trade adjustment assistance program for older 
                            workers.

                       Subtitle F--Other Matters

Sec. 161. Agreements with States.
Sec. 162. Fraud and recovery of overpayments.
Sec. 163. Technical amendments.
Sec. 164. Office of Trade Adjustment Assistance; Deputy Assistant 
                            Secretary for Trade Adjustment Assistance.
Sec. 165. Collection of data and reports; information to workers.
Sec. 166. Extension of TAA program.
Sec. 167. Judicial review.
Sec. 168. Liberal construction of certification of workers and firms.

            TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

Sec. 201. Trade adjustment assistance for firms.
Sec. 202. Extension of authorization of trade adjustment assistance for 
                            firms.
Sec. 203. Industry-wide programs for the development of new services.
Sec. 204. Demonstration project on strategic trade transformation 
                            assistance.

                   TITLE III--UNEMPLOYMENT INSURANCE

Sec. 301. Short title.
Sec. 302. Special transfers to State accounts in the Unemployment Trust 
                            Fund.
Sec. 303. Extension of FUTA tax.
Sec. 304. Safety Net Review Commission.

              TITLE IV--MANUFACTURING REDEVELOPMENT ZONES

Sec. 401. Manufacturing redevelopment zones.
Sec. 402. Delay in application of worldwide interest allocation.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Since January 2001, the United States economy has lost 
        nearly 3 million jobs in the manufacturing sector alone.
            (2) Today, over 7.1 million people in the United States are 
        unemployed, and nearly 1.2 million of those individuals have 
        been unemployed for 6 months or longer.
            (3) While the United States manufacturing sector has been 
        the hardest hit by increased unemployment, the United States 
        service sector has also seen declines as jobs have moved to 
        low-cost labor markets, such as China, India, and the 
        Philippines.
            (4) Promoting the economic growth and competitiveness of 
        the United States requires--
                    (A) opening substantial new markets for United 
                States goods, services, and farm products;
                    (B) building a strong framework of rules for 
                international trade to level the playing field for 
                United States workers and businesses in all sectors of 
                the economy; and
                    (C) helping those affected by globalization 
                overcome its challenges and succeed.
            (5) Congress created the trade adjustment assistance 
        program in 1962 to provide United States workers who lose their 
        jobs because of foreign competition with government-funded 
        training and associated income support to enable such workers 
        to transition to new, good-paying jobs.
            (6) Unfortunately, the trade adjustment assistance program 
        has not kept pace with globalization and it is failing to 
        ensure that all workers adversely affected by trade receive the 
        assistance they need and deserve.
            (7) Workers in the service sector, who make up 
        approximately 80 percent of the United States workforce, are 
        ineligible for trade adjustment assistance.
            (8) Inadequate funding for training leaves many dislocated 
        workers without access to the retraining they need to find 
        good-paying jobs.
            (9) Unnecessary, unduly burdensome, and confusing program 
        eligibility rules prevent workers from gaining access to 
        benefits for which they are eligible.
            (10) The health coverage tax credit suffers from 
        fundamental flaws and, as a result, the credit is not being 
        used by the vast majority of people who are eligible for it, 
        despite a clear need for access to affordable health care.
            (11) To meet the challenges posed by globalization and to 
        preserve the critical role that United States workers play in 
        promoting the strength and prosperity of the United States, the 
        trade adjustment assistance program must be reformed.

            TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

  Subtitle A--Trade Adjustment Assistance for Service Sector Workers; 
  Expansion of Covered Shifts in Production; Expansion of Downstream 
                      Secondary Worker Eligibility

SEC. 101. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICES SECTOR; 
              SHIFTS IN PRODUCTION.

    (a) Petitions.--Section 221(a) of the Trade Act of 1974 (19 U.S.C. 
2271(a)(1)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``Secretary'' and inserting 
                        ``Secretary of Labor''; and
                            (ii) by striking ``or subdivision'' and 
                        inserting (or subdivision) or public agency (or 
                        subdivision); and
                    (B) in subparagraph (A), by striking ``firm)'' and 
                inserting ``firm, and workers in a service sector firm 
                or subdivision of a service sector firm, or public 
                agency)''; and
            (2) in paragraph (3), by inserting ``and on the Website of 
        the Department of Labor'' after ``Federal Register''.
    (b) Group Eligibility Requirements.--
            (1) In general.--Subsection (a) of section 222 of the Trade 
        Act of 1974 (19 U.S.C. 2272) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``(including workers in any agricultural firm 
                or subdivision of an agricultural firm)'' and inserting 
                ``(other than workers in a public agency)'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)(ii), by striking 
                        ``like or directly competitive with articles 
                        produced'' and inserting ``or services like or 
                        directly competitive with articles produced or 
                        services provided''; and
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B)(i) there has been a shift, by such workers' 
                firm or subdivision to a foreign country, of production 
                of articles, or in provision of services, like or 
                directly competitive with articles that are produced, 
                or services that are provided, by such firm or 
                subdivision; or
                    ``(ii) such workers' firm or subdivision has 
                obtained or is likely to obtain articles or services 
                described in clause (i) from a foreign country.''.
            (2) Workers in public agencies.--Such section is further 
        amended--
                    (A) by redesignating subsections (b) and (c) as 
                subsections (c) and (d), respectively; and
                    (B) by inserting after subsection (a) the 
                following:
    ``(b) Adversely Affected Workers in Public Agencies.--A group of 
workers in a public agency shall be certified by the Secretary as 
eligible to apply for adjustment assistance under this chapter pursuant 
to a petition filed under section 221 if the Secretary determines 
that--
            ``(1) a significant number or proportion of the workers in 
        the public agency, or an appropriate subdivision of the public 
        agency, have become totally or partially separated, or are 
        threatened to become totally or partially separated; and
            ``(2) the public agency or subdivision has obtained or is 
        likely to obtain from a foreign country services that would 
        otherwise be provided by such agency or subdivision.''.
            (3) Adversely affected secondary workers.--Subsection (c) 
        of such section (as redesignated by paragraph (2)(A) of this 
        subsection) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``agricultural firm)'' and inserting 
                ``agricultural firm, and workers in a service sector 
                firm or subdivision of a service sector firm)'';
                    (B) in paragraph (2)--
                            (i) by inserting ``or service'' after 
                        ``related to the article''; and
                            (ii) by striking ``(c)(3)'' and inserting 
                        ``(d)(3)''; and
                    (C) in paragraph (3)(A), by striking ``it supplied 
                to the firm (or subdivision)'' and inserting ``or 
                services it supplied to the firm (or subdivision)''.
            (4) Definitions and eligibility.--Subsection (d) of such 
        section (as redesignated by paragraph (2)(A) of this 
        subsection) is amended--
                    (A) by striking ``(d) For purposes of this 
                section--'' and inserting ``(d) Definitions and 
                Eligibility.--For purposes of this section:''
                    (B) in paragraph (3), to read as follows:
            ``(3) Downstream producer.--The term `downstream producer' 
        means a firm that performs additional, value-added production 
        processes or services for a firm or subdivision, including a 
        firm that performs final assembly, finishing, testing, 
        packaging, or maintenance or transportation services directly 
        for another firm (or subdivision), for articles or services 
        that were the basis for a certification of eligibility under 
        subsection (a) of a group of workers employed by such other 
        firm (or subdivision).'';
                    (C) in paragraph (4)--
                            (i) by striking ``for articles'' and 
                        inserting ``, or services, used in the 
                        production of articles or in the provision of 
                        services, as the case may be,''; and
                            (ii) by inserting ``(or subdivision)'' 
                        after ``such other firm''; and
                    (D) by adding at the end the following:
            ``(5) Firms identified by itc.--A petition filed under 
        section 221 covering a group of workers from a firm or 
        appropriate subdivision of a firm meets the requirements of 
        subsection (a) if the firm is identified by the International 
        Trade Commission under subsection (c), (d), or (e) of section 
        224.''.
            (5) Basis for secretary's determinations.--Such section is 
        further amended by adding at the end the following:
    ``(e) Basis for Secretary's Determinations.--
            ``(1) Increased imports of services.--For purposes of 
        subsection (a)(2)(A)(ii), the Secretary may determine that 
        increased imports of like or directly competitive services 
        exist if the customers of the workers' firm or subdivision 
        accounting for not less than 20 percent of the sales of the 
        workers' firm or subdivision (as the case may be) certify to 
        the Secretary that such customers are obtaining such services 
        from a foreign country.
            ``(2) Shift in production; obtaining articles or services 
        abroad.--For purposes of subsections (a)(2)(B) and (b)(2), the 
        Secretary may determine that there has been a shift in 
        production of articles or provision of services, or that a 
        workers' firm or public agency, or subdivision thereof, has 
        obtained or is likely to obtain like or directly competitive 
        articles or services from a foreign country, based on a 
        certification thereof from the workers' firm, public agency, or 
        subdivision (as the case may be).
            ``(3) Process and methods for obtaining certifications.--
                    ``(A) Request by petitioner.--If requested by the 
                petitioner, the Secretary shall obtain the 
                certifications under paragraphs (1) and (2) in such 
                manner as the Secretary determines is appropriate, 
                including by issuing subpoenas under section 249 when 
                necessary.
                    ``(B) Protection of confidential information.--The 
                Secretary may not release information obtained under 
                subparagraph (A) that the Secretary considers to be 
                confidential business information unless the party 
                submitting the confidential business information had 
                notice, at the time of submission, that such 
                information would be released by the Secretary, or such 
                party subsequently consents to the release of the 
                information. Nothing in this subparagraph shall be 
                construed to prohibit a court from requiring the 
                submission of such confidential business information to 
                the court in camera.''.
    (c) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C. 
2319) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``chapter--'' and inserting ``chapter:'';
            (2) in paragraph (1)--
                    (A) by inserting ``, or employment in a public 
                agency or appropriate subdivision of a public agency,'' 
                after ``of a firm''; and
                    (B) by striking ``such firm or subdivision'' 
                inserting ``such firm (or subdivision) or public agency 
                (or subdivision)'';
            (3) in paragraph (2), by striking ``employment--'' and all 
        that follows and inserting ``employment has been totally or 
        partially separated from such employment.'';
            (4) by redesignating paragraphs (8) through (17) as 
        paragraphs (10) through (19), respectively; and
            (5) by inserting after paragraph (6) the following:
            ``(7) The term `public agency' means a department or agency 
        of a State or local government or of the Federal Government.
            ``(8) The term `service sector firm' means an entity 
        engaged in the business of providing services.
            ``(9) Except as otherwise provided, the term `Secretary' 
        means the Secretary of Labor.''.

SEC. 102. DETERMINATIONS BY SECRETARY OF LABOR.

    Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended--
            (1) in subsection (b), by striking ``before his 
        application'' and all that follows and inserting ``before the 
        worker's application under section 231 occurred more than one 
        year before the date of the petition on which such 
        certification was granted.'';
            (2) in subsection (c), by striking ``together with his 
        reasons'' and inserting ``and on the Website of the Department 
        of Labor, together with the Secretary's reasons''; and
            (3) in subsection (d), by striking ``together with his 
        reasons'' and inserting ``and on the Website of the Department 
        of Labor, together with the Secretary's reasons''.

SEC. 103. MONITORING AND REPORTING RELATING TO SERVICE SECTOR.

    (a) In General.--Section 282 of the Trade Act of 1974 (19 U.S.C. 
2393) is amended--
            (1) in the heading, by striking ``system'' and inserting 
        ``and data collection'';
            (2) in the first sentence--
                    (A) by striking ``The Secretary'' and inserting 
                ``(a) Monitoring Programs.--The Secretary'';
                    (B) by inserting ``and services'' after ``imports 
                of articles'';
                    (C) by inserting ``and domestic provision of 
                services'' after ``domestic production'';
                    (D) by inserting ``or providing services'' after 
                ``producing articles''; and
                    (E) by inserting ``, or provision of services,'' 
                after ``changes in production''; and
            (3) by adding at the end the following:
    ``(b) Collection of Data and Reports on Service Sector.--
            ``(1) Secretary of labor.--Not later than 90 days after the 
        date of the enactment of the Trade and Globalization Assistance 
        Act of 2007, the Secretary of Labor shall implement a system to 
        collect data on adversely affected workers employed in the 
        service sector that includes the number of workers by State, 
        industry, and cause of dislocation of each worker.
            ``(2) Secretary of commerce.--Not later than 1 year after 
        such date of enactment, the Secretary of Commerce shall, in 
        consultation with the Secretary of Labor, conduct a study and 
        report to Congress on ways to improve the timeliness and 
        coverage of data on trade in services, including methods to 
        identify increased imports due to the relocation of United 
        States firms to foreign countries, and increased imports due to 
        United States firms obtaining services from firms in foreign 
        countries.''.
    (b) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by striking the item relating to section 
282 and inserting the following:

``Sec. 282. Trade monitoring and data collection.''.

         Subtitle B--Industry-Wide Trade Adjustment Assistance

SEC. 111. INDUSTRY-WIDE DETERMINATIONS.

    (a) In General.--Subchapter A of chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2271 et seq.) is amended by adding after section 
223 the following:

``SEC. 223A. INDUSTRY-WIDE DETERMINATIONS.

    ``(a) Investigation.--Upon the request of the President or the 
United States Trade Representative, or the resolution of either the 
Committee on Finance of the Senate or the Committee on Ways and Means 
of the House of Representatives, with respect to a domestic industry, 
or if the Secretary certifies groups of workers in a domestic industry 
under section 223(a) pursuant to 3 petitions within a 180-day period, 
the Secretary shall promptly initiate an investigation under this 
chapter to determine the eligibility for adjustment assistance of--
            ``(1) all workers in that domestic industry; or
            ``(2) all workers in that domestic industry in a specific 
        geographic region.
    ``(b) Determination Regarding Industry-Wide Certification.--
            ``(1) Determination.--The Secretary shall, not later than 
        60 days after receiving a request or resolution described in 
        subsection (a) with respect to a domestic industry, or making 
        the third certification of workers in a domestic industry 
        described in subsection (a), as the case may be--
                    ``(A) determine whether all adversely affected 
                workers in that domestic industry are eligible to apply 
                for assistance under this subchapter, in accordance 
                with the criteria established under subsection (e); or
                    ``(B) determine whether all adversely affected 
                workers in that domestic industry in a specific 
                geographic region are eligible to apply for assistance 
                under this subchapter, in accordance with the criteria 
                established under subsection (e).
    ``(c) Identification and Certification.--
            ``(1) Affirmative determination.--
                    ``(A) In general.--Upon making an affirmative 
                determination under subsection (b), the Secretary 
                shall--
                            ``(i) identify all firms operating within 
                        the domestic industry described in paragraph 
                        (1) or (2) or subsection (b) that are covered 
                        by the determination; and
                            ``(ii) certify all workers of such firms as 
                        a group of workers eligible to apply for 
                        assistance under this subchapter, without any 
                        other determination of whether such group meets 
                        the requirements of section 222.
                    ``(B) Other requirements.--
                            ``(i) In general.--Each certification under 
                        subparagraph (A)(ii) shall specify the date on 
                        which the total or partial separation began or 
                        threatened to begin, except that--
                                    ``(I) with respect to a request or 
                                a resolution under subsection (a), such 
                                date may not be a date that precedes 
                                one year before the date on which the 
                                Secretary receives the request or 
                                resolution, as the case may be; and
                                    ``(II) with respect to the third 
                                certification of workers in a domestic 
                                industry described in subsection (a), 
                                such date may not be a date that 
                                precedes one year before the date on 
                                which the Secretary certifies the 3d 
                                such petition.
                            ``(ii) Inapplicability.--A certification 
                        under subparagraph (A)(ii) shall not apply to 
                        any worker whose last total or partial 
                        separation from the firm occurred before the 
                        applicable date specified in clause (i).
                            ``(iii) Training before separation.--Any 
                        worker covered by a certification under 
                        subparagraph (A)(ii) shall be deemed to be an 
                        adversely affected worker for purposes of 
                        receiving training under section 236, without 
                        regard to whether the worker has been totally 
                        or partially separated from employment.
            ``(2) Negative determination.--If the Secretary makes a 
        negative determination under subsection (b), the Secretary 
        shall notify the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate of 
        the reasons for the Secretary's determination.
            ``(3) Publication.--Upon making a determination under 
        subsection (b), the Secretary shall promptly publish a summary 
        of the determination in the Federal Register and on the Website 
        of the Department of Labor, together with the reasons for 
        making such determination.
            ``(4) Termination.--Whenever the Secretary determines that 
        a certification under paragraph (1) is no longer warranted, the 
        Secretary shall terminate the certification and promptly have 
        notice of the termination published in the Federal Register and 
        on the Website of the Department of Labor, together with the 
        reasons for making such determination under this paragraph. 
        Such termination shall apply only with respect to total or 
        partial separations occurring after the termination date 
        specified by the Secretary.
    ``(d) Outreach.--Upon making a certification under subsection 
(c)(1) of eligibility for adjustment assistance under this chapter of a 
group of workers or all workers in a domestic industry, the Secretary 
shall notify each Governor of a State in which the workers are located 
of the certification.
    ``(e) Regulations.--The Secretary shall, not later than 1 year 
after the date of the enactment of the Trade and Globalization 
Assistance Act of 2007, issue regulations for making determinations 
under this section, including criteria for making such determinations. 
The Secretary shall develop such regulations in consultation with the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate, and the Secretary shall submit such 
regulations to each such committee at least 60 days before the 
regulations go into effect.
    ``(f) Domestic Industry Defined.--In this section, the term 
`domestic industry' means an industry in the United States, as that 
industry is defined by the North American Industry Classification 
System.''.
    (b) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by inserting after the item relating to 
section 223 the following:

``Sec. 223A. Industry-wide determinations.''.
    (c) Conforming Amendments.--Chapter 2 of title II of the Trade Act 
of 1974 (19 U.S.C. 2271 et seq.) is amended--
            (1) in section 225--
                    (A) in subsection (a), in the last sentence by 
                inserting ``or 223A'' after ``223''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1), by striking 
                        ``subchapter A of this chapter'' and inserting 
                        ``this subchapter''; and
                            (ii) in paragraph (2), by striking 
                        ``subchapter A'' and inserting ``this 
                        subchapter''; and
            (2) in section 231--
                    (A) in subsection (a)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``more than 60 days'' and all that 
                        follows through ``section 221'' and inserting 
                        ``on or after the date of such certification''; 
                        and
                            (ii) in paragraph (1)--
                                    (I) in subparagraph (B), by 
                                inserting ``or 223A (as the case may 
                                be)'' after ``223''; and
                                    (II) in subparagraph (C), by 
                                inserting ``or 223A(c)(4), as the case 
                                may be'' after ``223(d)''; and
                    (B) in subsection (b)--
                            (i) by striking paragraph (2); and
                            (ii) in paragraph (1)--
                                    (I) by striking ``(1)'';
                                    (II) by redesignating subparagraphs 
                                (A) and (B) as paragraph (1) and (2), 
                                respectively;
                                    (III) by redesignating clauses (i) 
                                and (ii) as subparagraphs (A) and (B), 
                                respectively; and
                                    (IV) by redesignating subclauses 
                                (I) and (II) as clauses (i) and (ii), 
                                respectively.

SEC. 112. NOTIFICATIONS REGARDING AFFIRMATIVE DETERMINATIONS AND 
              SAFEGUARDS.

    (a) In General.--Section 224 of the Trade Act of 1974 (19 U.S.C. 
2274) is amended--
            (1) in the heading, by striking ``study by secretary of 
        labor when international trade commission begins 
        investigation'' and inserting ``study and notifications 
        regarding trade remedy determinations'';
            (2) in subsection (a), by striking ``Whenever'' and 
        inserting ``Study of Domestic Industry.--Whenever'';
            (3) in subsection (b)--
                    (A) by striking ``The report'' and inserting 
                ``Report by the Secretary.--The report'';
                    (B) by striking ``his report'' and inserting ``the 
                Secretary's report''; and
                    (C) by inserting ``and on the Website of the 
                Department of Labor'' after ``Federal Register''; and
            (4) by adding at the end the following:
    ``(c) Notifications Regarding Affirmative Safeguard Determinations 
Under Section 202.--Upon issuing an affirmative finding regarding 
serious injury, or the threat thereof, to a domestic industry, under 
section 202, the Commission shall notify the Secretary and the 
Secretary of Commerce of that finding and the identity of the firms 
which comprise the domestic industry.
    ``(d) Notifications Regarding Affirmative Determinations Under 
Section 421.--Upon issuing an affirmative determination of market 
disruption, or the threat thereof, under section 421, the Commission 
shall notify the Secretary and the Secretary of Commerce of that 
determination and the identity of the firms which comprise the affected 
domestic industry.
    ``(e) Notifications Regarding Affirmative Determinations Under 
Tariff Act of 1930.--Upon issuing a final affirmative determination of 
injury, or the threat thereof, under section 705 or section 735 of the 
Tariff Act of 1930 (19 U.S.C. 1671d and 1673d), the Commission shall 
notify the Secretary and the Secretary of Commerce of that 
determination and the identity of the firms which comprise the affected 
domestic industry.
    ``(f) Notification of Industry and Worker Representatives.--
Whenever the Commission makes a notification under subsection (c), (d), 
or (e)--
            ``(1) the Secretary shall--
                    ``(A) notify the firms identified by the Commission 
                as comprising the domestic industry affected, and any 
                certified or recognized union or other duly authorized 
                representatives of the workers in such industry, of the 
                allowances, training, employment services, and other 
                benefits available under this chapter, and the 
                procedures under this chapter for filing petitions and 
                applying for benefits;
                    ``(B) notify the Governor of each State in which 
                one or more firms described in subparagraph (A) are 
                located of the Commission's determination and the 
                identity of the firms; and
                    ``(C) provide the necessary assistance to 
                employers, groups of workers, and any certified or 
                recognized union or other duly authorized 
                representatives of such workers to file petitions under 
                section 221; and
            ``(2) the Secretary of Commerce shall--
                    ``(A) notify the firms identified by the Commission 
                as comprising the domestic industry affected of the 
                benefits under chapter 3 and the procedures under such 
                chapter for filing petitions and applying for benefits; 
                and
                    ``(B) provide the necessary assistance to firms to 
                file petitions under section 251.''.
    (b) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by striking the item relating to section 
224 and inserting the following:

``Sec. 224. Study and notifications regarding trade remedy 
                            determinations.''.

SEC. 113. NOTIFICATION TO SECRETARY OF COMMERCE.

    Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by 
adding at the end the following:
    ``(c) Upon issuing a certification under section 223 or 223A, the 
Secretary shall notify the Secretary of Commerce of the identify of the 
firm or firms that are covered by the certification.''.

SEC. 114. RESTRICTION ON ELIGIBILITY FOR PROGRAM BENEFITS.

    (a) In General.--Subchapter A of chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2271 et seq.) is amended by adding at the end 
the following new section:

``SEC. 226. RESTRICTION ON ELIGIBILITY FOR PROGRAM BENEFITS.

    ``No benefit allowances, training, or other employment services may 
be provided under this chapter to a worker who is an alien unless the 
alien is an individual lawfully admitted for permanent residence to the 
United States, is lawfully present in the United States, or is 
permanently residing in the United States under color of law.''.
    (b) Conforming Amendment.--The table of contents of the Trade Act 
of 1974 is amended by adding after the item relating to section 225 the 
following:

``226. Restriction on eligibility for program benefits.''.

                      Subtitle C--Program Benefits

SEC. 121. QUALIFYING REQUIREMENTS FOR WORKERS.

    (a) In General.--Subsection (a)(5)(A)(ii) of section 231 of the 
Trade Act of 1974 (19 U.S.C. 2291) is amended--
            (1) by striking subclauses (I) and (II) and inserting the 
        following:
                            ``(I) in the case of a worker whose most 
                        recent total separation from adversely affected 
                        employment that meets the requirements of 
                        paragraphs (1) and (2) occurs after the date on 
                        which the Secretary issues a certification 
                        covering the worker, the last day of the 26th 
                        week after such total separation,
                            ``(II) in the case of a worker whose most 
                        recent total separation from adversely affected 
                        employment that meets the requirements of 
                        paragraphs (1) and (2) occurs before the date 
                        on which the Secretary issues a certification 
                        covering the worker, the last day of the 26th 
                        week after the date of such certification,''; 
                        and
            (2) in subclause (III)--
                    (A) by striking ``later of the dates specified in 
                subclause (I) or (II)'' and inserting ``date specified 
                in subclause (I) or (II), as the case may be''; and
                    (B) by striking ``or'' at the end;
            (3) by redesignating subclause (IV) as subclause (V); and
            (4) by inserting after subclause (III) the following:
                            ``(IV) the last day of such period that the 
                        Secretary determines appropriate, if the 
                        failure to enroll is due to the failure to 
                        provide the worker with timely information 
                        regarding the date specified in subclause (I) 
                        or (II), as the case may be, or''.
    (b) Waivers of Training Requirements.--Subsection (c) of such 
section 231 is amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``The worker possesses'' and 
                inserting
                            ``(i) In general.--The worker possesses'';
                    (B) by moving the remaining text 2 ems to the 
                right; and
                    (C) by adding at the end the following:
                            ``(ii) Marketable skills defined.--For 
                        purposes of clause (i), the term `marketable 
                        skills' may include the possession of a 
                        postgraduate degree from an institution of 
                        higher education (as defined in section 101(a) 
                        of the Higher Education Act of 1965) or 
                        equivalent foreign institution, or the 
                        possession of an equivalent postgraduate 
                        certification in a specialized field.''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``may 
                authorize'' and inserting ``shall authorize'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) Duration of waivers.--A waiver issued under 
                paragraph (1) by a cooperating State shall be effective 
                for not more than 3 months after the date on which the 
                waiver is issued, except that the State, upon reviewing 
                the waiver, may extend the waiver for an additional 
                period of not more than 3 months if the State 
                determines that the waiver should be maintained.''.
    (c) Determinations of Eligibility by State Employees Appointed on 
Merit Basis.--Such section 231 is further amended by adding at the end 
the following:
    ``(d) Determinations of Eligibility by State Employees Appointed on 
Merit Basis.--All determinations of eligibility for trade readjustment 
allowances under this part shall be made by employees of the State who 
are appointed on a merit basis.''.
    (d) Conforming Amendment.--Section 233 of the Trade Act of 1974 (19 
U.S.C. 2293) is amended by striking subsection (b) and redesignating 
subsections (c) through (g) as subsections (b) through (f), 
respectively.

SEC. 122. WEEKLY AMOUNTS.

    (a) In General.--Section 232 of the Trade Act of 1974 (19 U.S.C. 
2292) is amended--
            (1) in subsection (a)--
                    (A) by striking ``subsections (b) and (c)'' and 
                inserting ``subsections (b), (c), and (d)'';
                    (B) by striking ``total unemployment'' the first 
                place it appears and inserting ``unemployment''; and
                    (C) in paragraph (2), by adding at the end before 
                the period the following: ``, except that in the case 
                of an adversely affected worker who is participating in 
                full-time training under this chapter, such income 
                shall not include earnings from work for such week that 
                are equal to or less than the most recent weekly 
                benefit amount of the unemployment insurance payable to 
                the worker for a week of total unemployment preceding 
                the worker's first exhaustion of unemployment insurance 
                (as determined for purposes of section 231(a)(3)(B))'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following:
    ``(b)(1) Notwithstanding section 231(a)(3)(B), if an adversely 
affected worker who is participating in training qualifies for 
unemployment insurance under State law, based in whole or in part upon 
part-time or short-term employment following approval of the worker's 
initial trade readjustment allowance application under section 231(a), 
then for any week for which unemployment insurance is payable and for 
which the worker would otherwise be entitled to a trade readjustment 
allowance based upon the certification under section 223, the worker 
shall, in addition to any such unemployment insurance, be paid a trade 
readjustment allowance in the amount described in paragraph (2).
    ``(2) The trade readjustment allowance payable under paragraph (1) 
shall be equal to the weekly benefit amount of the unemployment 
insurance upon which the worker's trade readjustment allowance was 
initially determined under subsection (a), reduced by--
            ``(A) the amount of the unemployment insurance benefit 
        payable to such worker for that week of unemployment for which 
        a trade readjustment allowance is payable under paragraph (1); 
        and
            ``(B) the amounts described in paragraphs (1) and (2) of 
        subsection (a).''.
    (b) Conforming Amendments.--Section 233 of the Trade Act of 1974 
(19 U.S.C. 2293) is amended--
            (1) in subsection (a)(1), by striking ``section 232(a)'' 
        and inserting ``subsections (a) and (b) of section 232''; and
            (2) in subsection (c), by striking ``section 232(b)'' and 
        inserting ``section 232(c)''.

SEC. 123. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR 
              EXTENDED TRAINING AND BREAKS IN TRAINING.

    Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is 
amended--
            (1) in paragraph (2), by inserting ``under paragraph (1)'' 
        after ``trade readjustment allowance'';
            (2) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``52 additional weeks'' and 
                        inserting ``78 additional weeks''; and
                            (ii) by striking ``52-week'' and inserting 
                        ``91-week''; and
                    (B) in the matter following subparagraph (B), by 
                striking ``52-week'' and inserting ``91-week''.

SEC. 124. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.

    Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended by 
adding at the end the following:
    ``(g) Special Rule for Calculating Separation.--Notwithstanding any 
other provision of this chapter, any period during which a judicial or 
administrative appeal is pending with respect to the denial by the 
Secretary of a petition under section 223 shall not be counted for 
purposes of calculating the period of separation under subsection 
(a)(2) or for purposes of calculating time periods specified in section 
231(a)(5)(A).
    ``(h) Special Rule for Justifiable Cause.--The Secretary may extend 
the periods during which trade readjustment allowances are payable to 
an adversely affected worker under paragraphs (2) and (3) of subsection 
(a) and under subsection (f) (but not the maximum amounts of such 
allowances that are payable under this section), if the Secretary 
determines that there is justifiable cause for such an extension, such 
as the failure to provide the worker with timely information, delays in 
certification due to administrative reconsideration or judicial review, 
or justifiable breaks in training that exceed the period allowable 
under subsection (e).''.

SEC. 125. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR 
              WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.

    Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended--
            (1) by striking ``Except where inconsistent'' and inserting 
        ``(a) In General.--Except where inconsistent''; and
            (2) by adding at the end the following:
    ``(b) State Laws and Regulations on Good Cause for Waiver of Time 
Limits or Late Filing of Claims.--Any law or regulation of a 
cooperating State under section 239 that allows for a waiver for good 
cause of any time limit, including a waiver for good cause to allow the 
late filing of any claim, for trade readjustment allowances or other 
adjustment assistance under this chapter shall, in the administration 
of the program by the State under this chapter, apply to the applicable 
time limitation referred to or specified in this chapter or any 
regulation prescribed to carry out this chapter.''.

SEC. 126. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

    (a) In General.--Section 235 of the Trade Act of 1974 (19 U.S.C. 
2295) is amended to read as follows:

``SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

    ``The Secretary shall provide, directly or through agreements with 
States under section 239, to adversely affected workers covered by a 
certification under subchapter A of this chapter the following 
employment and case management services:
            ``(1) Comprehensive and specialized assessment of skill 
        levels and service needs, including through--
                    ``(A) diagnostic testing and use of other 
                assessment tools; and
                    ``(B) in-depth interviewing and evaluation to 
                identify employment barriers and appropriate employment 
                goals.
            ``(2) Development of an individual employment plan to 
        identify employment goals and objectives, and appropriate 
        training to achieve those goals and objectives.
            ``(3) Information on training available in local and 
        regional areas, information on individual counseling to 
        determine which training is suitable training, and information 
        on how to apply for such training.
            ``(4) Information on how to apply for financial aid, 
        including referring workers to educational opportunity centers 
        under section 402F of the Higher Education Act of 1965, where 
        applicable, and notifying workers that the workers may ask 
        financial aid administrators at institutions of higher 
        education to allow use of their current year income in the 
        financial aid process.
            ``(5) Short-term prevocational services, including 
        development of learning skills, communications skills, 
        interviewing skills, punctuality, personal maintenance skills, 
        and professional conduct to prepare individuals for employment 
        or training.
            ``(6) Individual career counseling, including job search 
        and placement counseling, during the period in which the 
        individual is receiving a trade adjustment allowance or 
        training under this chapter, and for purposes of job placement 
        after receiving such training.
            ``(7) Provision of employment statistics information, 
        including the provision of accurate information relating to 
        local, regional, and national labor market areas, including--
                    ``(A) job vacancy listings in such labor market 
                areas;
                    ``(B) information on jobs skills necessary to 
                obtain jobs identified in job vacancy listings 
                described in subparagraph (A);
                    ``(C) information relating to local occupations 
                that are in demand and earnings potential of such 
                occupations; and
                    ``(D) skills requirements for local occupations 
                described in subparagraph (C).
            ``(8) Supportive services, including services relating to 
        child care, transportation, dependent care, housing assistance, 
        and need-related payments that are necessary to enable an 
        individual to participate in training.''.
    (b) Clerical Amendment.--The item relating to section 235 in the 
table of contents for title II of the Trade Act of 1974 is amended to 
read as follows:

``235. Employment and case management services.''.

SEC. 127. TRAINING.

    (a) In General.--Subsection (a)(1) of section 236 of the Trade Act 
of 1974 (19 U.S.C. 2296) is amended by striking the last sentence.
    (b) Funding.--Subsection (a)(2) of such section is amended--
            (1) in subparagraph (A), to read as follows:
    ``(A) The total amount of payments that may be made under paragraph 
(1) for each of the fiscal years 2008 and 2009 shall not exceed 
$440,000,000. The total amount of payments that may be made under 
paragraph (1) for fiscal year 2010 and each subsequent fiscal year 
shall not exceed $660,000,000.''; and
            (2) by striking subparagraph (B) and inserting the 
        following:
    ``(B) Not later than 120 days after the date of the enactment of 
the Trade and Globalization Assistance Act of 2007, the Secretary shall 
establish and implement procedures for the allocation among the States 
in each fiscal year of funds available to pay the costs of training for 
workers under this section. The Secretary shall, at least 60 days 
before the date on which the procedures described in this subparagraph 
are first implemented, consult with the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
with respect to such procedures.
    ``(C) In establishing and implementing the procedures under 
subparagraph (B), the Secretary shall--
            ``(i) provide for at least 3 distributions of funds 
        available for training in the fiscal year, and, in the first 
        such distribution, disburse not more than 50 percent of the 
        total amount of funds available for training in that fiscal 
        year;
            ``(ii) consider using a broad range of factors for the 
        allocation of training funds distributed to States for each 
        fiscal year, including factors such as--
                    ``(I) the number of workers certified under 
                sections 223 and 223A in the preceding fiscal year;
                    ``(II) the total number of workers certified under 
                sections 223 and 223A that are enrolled in training 
                approved under this section;
                    ``(III) the minimum level of funding necessary to 
                provide training approved under this section; and
                    ``(IV) notifications under the Worker Adjustment 
                and Retraining Notification Act or other layoff 
                notifications;
            ``(iii) after the initial distribution of training funds to 
        States at the beginning of each fiscal year, provide for 
        subsequent distributions of training funds remaining, based on 
        the factors described in clause (ii) (but, in the case of the 
        factor described in subclause (I) of clause (ii), based on data 
        from the preceding 2 fiscal quarters) if a State requests the 
        distribution of the remaining funds;
            ``(iv) ensure that any final distribution of funds during a 
        fiscal year is made not later than July 1 of that fiscal year; 
        and
            ``(v) develop an explicit policy for re-capture and 
        redistribution of training funds, to the extent such re-capture 
        and redistribution of training funds is necessary.''.
    (c) Determinations Regarding Training.--Subsection (a)(9) of such 
section is amended--
            (1) by striking ``The Secretary'' and inserting ``(A) 
        Subject to subparagraph (B), the Secretary''; and
            (2) by adding at the end the following:
    ``(B)(i) In determining under paragraph (1)(E) whether a worker is 
qualified to undertake and complete training, the Secretary may not 
disallow training for a period longer than the worker's period of 
eligibility for trade readjustment allowances under part I if the 
worker demonstrates that the worker has sufficient financial resources 
to complete the training after the expiration of the worker's period of 
eligibility for such trade readjustment allowances.
    ``(ii) In determining the reasonable cost of training under 
paragraph (1)(F) with respect to a worker, the Secretary may consider 
whether other public or private funds are reasonably available to the 
worker, except that the Secretary may not require a worker to obtain 
such funds as a condition of approval of training under paragraph 
(1).''.
    (d) Determinations of Eligibility by State Employees Appointed on 
Merit Basis.--Such section is further amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Determinations of Eligibility by State Employees Appointed on 
Merit Basis.--All determinations of eligibility for training under this 
section shall be made by employees of the State who are appointed on a 
merit basis.''.
    (e) GAO Study and Report.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study of the procedures for the allocation of 
        training funds for workers under subparagraphs (B) and (C) of 
        section 236(a)(2) of the Trade Act of 1974 (19 U.S.C. 2296), as 
        added by subsection (a) of this section, that are established 
        and implemented by the Secretary of Labor pursuant to such 
        section. In carrying out the study, the Comptroller General 
        shall examine the overall adequacy of funding for training for 
        workers by State and the effectiveness of the procedures for 
        allocating training funds between States and among workers.
            (2) Reports.--
                    (A) Interim report.--The Comptroller General of the 
                United States shall submit to the Committee on Ways and 
                Means of the House of Representatives and the Committee 
                on Finance of the Senate an interim report that 
                contains the results of the study conducted under 
                paragraph (1) for the first fiscal year with respect to 
                which the procedures described in paragraph (1) are 
                implemented.
                    (B) Final report.--The Comptroller General of the 
                United States shall submit to the Committee on Ways and 
                Means of the House of Representatives and the Committee 
                on Finance of the Senate a final report that contains 
                the results of the study conducted under paragraph (1) 
                for the first three fiscal years with respect to which 
                the procedures described in paragraph (1) are 
                implemented.

SEC. 128. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS.

    (a) In General.--Section 236(a)(5) of the Trade Act of 1974 (19 
U.S.C. 2296(a)(5)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by adding ``and'' at the end of clause (ii); 
                and
                    (C) by inserting after clause (ii) the following:
                    ``(iii) apprenticeship programs registered under 
                the National Apprenticeship Act (29 U.S.C. 50 et 
                seq.),'';
            (2) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively;
            (3) by inserting after subparagraph (D) the following:
            ``(E) any program of prerequisite education or coursework 
        required to enroll in training that may be approved under this 
        section,'';
            (4) in subparagraph (F)(ii), as redesignated by paragraph 
        (1), by striking ``and'' at the end;
            (5) in subparagraph (G), as redesignated by paragraph (1), 
        by striking the period at the end and inserting ``, and''; and
            (6) by adding at the end the following:
            ``(H) any training program or coursework at an accredited 
        institution of higher education (as defined in section 101(a) 
        of the Higher Education Act of 1965), including a training 
        program or coursework for the purpose of--
                    ``(i) obtaining a degree or certification; or
                    ``(ii) completing a degree or certification that 
                the worker had previously begun at an accredited 
                institution of higher education.
The Secretary may not limit approval of a training program under 
paragraph (1) to a program provided pursuant to title I of the 
Workforce Investment Act of 1998.''.
    (b) Conforming Amendments.--Section 233 of the Trade Act of 1974 
(19 U.S.C. 2293) is amended--
            (1) in subsection (a)(2), by inserting ``prerequisite 
        education or'' after ``requires a program of''; and
            (2) in subsection (f) (as redesignated by section 121(d) of 
        this Act), by inserting ``prerequisite education or'' after 
        ``includes a program of''.

SEC. 129. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS 
              WHILE IN TRAINING.

    (a) In General.--Section 236(d) of the Trade Act of 1974 (19 U.S.C. 
2296(d)) is amended to read as follows:
    ``(d) Eligibility.--A worker may not be determined to be ineligible 
or disqualified for unemployment insurance or program benefits under 
this subchapter--
            ``(1) because the worker--
                    ``(A) is enrolled in training approved under 
                subsection (a); or
                    ``(B) left work--
                            ``(i) that was not suitable employment to 
                        enter such training; or
                            ``(ii) that the worker engaged in on a 
                        temporary basis during a break in such training 
                        or a delay in the commencement of such 
                        training; or
            ``(2) because the provisions of State law or Federal 
        unemployment insurance law relating to availability for work, 
        active search for work, or refusal to accept work apply to a 
        week of training approved under subsection (a).''.
    (b) Definition.--Subchapter B of chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2291 et seq.) is amended--
            (1) in section 233(d) (as redesignated by section 121(d) of 
        this Act), by inserting ``suitable'' before ``on-the-job 
        training''; and
            (2) in section 236--
                    (A) by inserting ``suitable'' before ``on-the-job 
                training'' each place it appears; and
                    (B) by adding at the end the following:
    ``(h) Suitable On-the-Job Training.--For purposes of this section, 
the term `suitable on-the-job training' means on-the-job training--
            ``(1) that can reasonably be expected to lead to suitable 
        employment;
            ``(2) that is compatible with the skills of the worker;
            ``(3) that--
                    ``(A) involves a curriculum through which the 
                worker learns the skills necessary for the job for 
                which the worker is being trained; and
                    ``(B) can be measured by benchmarks that indicate 
                that the worker is learning such skills; and
            ``(4) that is certified by the State as an on-the-job 
        training program that meets the requirements of paragraph 
        (3).''.

SEC. 130. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT 
              SERVICES.

    (a) In General.--Part II of subchapter B of chapter 2 of title II 
of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by 
inserting after section 236 the following:

``SEC. 236A. ADDITIONAL PAYMENTS FOR ADMINISTRATIVE EXPENSES AND 
              EMPLOYMENT AND CASE MANAGEMENT SERVICES.

    ``(a) Administrative Expenses.--
            ``(1) In general.--The Secretary shall provide to each 
        State that receives a payment under section 236 for a fiscal 
        year an additional payment for such fiscal year in an amount 
        that is not less than 15 percent of the amount of the payment 
        under section 236.
            ``(2) Use of funds.--A State that receives an additional 
        payment under paragraph (1) shall use the payment for 
        administration of the trade adjustment assistance for workers 
        program under this chapter, including for--
                    ``(A) processing of waivers of training 
                requirements under section 231;
                    ``(B) collecting of data required under this 
                chapter; and
                    ``(C) providing services under section 235.
            ``(3) Administration requirement.--Funds provided to a 
        State under this subsection for a fiscal year that are in 
        excess of the amount of funds provided to the State for 
        administration of the trade adjustment assistance for workers 
        program under this chapter for fiscal year 2007 may only be 
        administered by employees of the State who are appointed on a 
        merit basis.
    ``(b) Additional Funding for Employment and Case Management 
Services.--
            ``(1) In general.--The Secretary shall provide to each 
        State that receives a payment under section 236 for a fiscal 
        year an additional payment for such fiscal year in an amount 
        that is not less than .06 percent of the total amount of 
        payments that may be made in that fiscal year as described in 
        section 236(a)(2).
            ``(2) Use of funds.--A State that receives an additional 
        payment under paragraph (1) shall use the payment for providing 
        services under section 235.
            ``(3) Administration requirement.--Funds provided to a 
        State under this subsection may only be administered by 
        employees of the State who are appointed on a merit basis.
    ``(c) Funding.--Funds provided to the States under this section 
shall not be counted toward the limitation contained in section 
236(a)(2)(A).''.
    (b) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by inserting after the item relating to 
section 236 the following:

``Sec. 236A. Additional payments for administrative expenses and 
                            employment and case management services.''.

SEC. 131. JOB SEARCH AND RELOCATION ALLOWANCES.

    (a) Job Search Allowances.--Section 237 of the Trade Act of 1974 
(19 U.S.C. 2297) is amended--
            (1) in subsection (a)(2)(C)(ii), by striking ``, unless the 
        worker received a waiver under section 231(c)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``90 percent of 
                the cost of'' and inserting ``all''; and
                    (B) in paragraph (2), by striking ``$1,250'' and 
                inserting ``$1,500''.
    (b) Relocation Allowances.--Section 238 of the Trade Act of 1974 
(19 U.S.C. 2298) is amended--
            (1) in subsection (a)(2)(E)(ii), by striking ``, unless the 
        worker received a waiver under section 231(c)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``90 percent of 
                the'' and inserting ``all''; and
                    (B) in paragraph (2), by striking ``$1,250'' and 
                inserting ``$1,500''.

                   Subtitle D--Health Care Provisions

SEC. 141. MODIFICATIONS RELATING HEALTH INSURANCE ASSISTANCE FOR 
              CERTAIN TAA AND PBGC PENSION RECIPIENTS.

    (a) Increase in Credit Percentage Amount.--
            (1) In general.--Subsection (a) of section 35 of the 
        Internal Revenue Code of 1986 is amended by striking ``65 
        percent'' and inserting ``85 percent''.
            (2) Conforming amendment.--Subsection (b) of section 7527 
        of such Code is amended by striking ``65 percent'' and 
        inserting ``85 percent''.
    (b) TAA Recipients Receiving Unemployment Compensation and Not 
Enrolled in Training Program Eligible for Credit.--Paragraph (2) of 
section 35(c) of such Code is amended to read as follows:
            ``(2) Eligible taa recipient.--The term `eligible TAA 
        recipient' means, with respect to any month, any individual 
        who--
                    ``(A) is receiving for any day of such month a 
                trade readjustment allowance under chapter 2 of title 
                II of the Trade Act of 1974, or
                    ``(B) who is receiving unemployment compensation 
                (as defined in section 85) for such month and who would 
                be eligible to receive such allowance for such month if 
                section 231 of such Act were applied without regard to 
                subsections (a)(3)(B) and (a)(5) thereof.
        An individual shall continue to be treated as an eligible TAA 
        recipient during the first month that such individual would 
        otherwise cease to be an eligible TAA recipient by reason of 
        the preceding sentence.''.
    (c) Eligibility for Eligible Individuals Made Retroactive to TAA-
Related Loss of Employment.--Subsection (c) of section 35 of such Code 
is amended by adding at the end the following new paragraph:
            ``(5) Retroactive eligibility for taa recipients.--In the 
        case of any individual who is an eligible TAA recipient or 
        eligible alternative TAA recipient for any month, such 
        individual shall be treated as an eligible individual for any 
        month which precedes such month and which begins after the 
        later of--
                    ``(A) the date of the separation from employment 
                which gives rise to such individual being an eligible 
                TAA recipient or eligible alternative TAA recipient, or
                    ``(B) December 31, 2007.''.
    (d) Continued Qualification of Family Members After Certain 
Events.--
            (1) In general.--Subsection (g) of section 35 of such Code 
        is amended by redesignating paragraph (9) as paragraph (10) and 
        inserting after paragraph (8) the following new paragraph:
            ``(9) Continued qualification of family members after 
        certain events.--
                    ``(A) Medicare eligibility.--In the case of any 
                month which would be an eligible coverage month with 
                respect to an eligible individual but for subsection 
                (f)(2)(A), such month shall be treated as an eligible 
                coverage month with respect to such eligible individual 
                solely for purposes of determining the amount of the 
                credit under this section with respect to any 
                qualifying family members of such individual (and any 
                advance payment of such credit under section 7527). 
                This subparagraph shall only apply with respect to the 
                first 36 months after such eligible individual is first 
                entitled to the benefits described in subsection 
                (f)(2)(A).
                    ``(B) Divorce.--In the case of the finalization of 
                a divorce between an eligible individual and such 
                individual's spouse, such spouse shall be treated as an 
                eligible individual for purposes of this section and 
                section 7527 for a period of 36 months beginning with 
                the date of such finalization, except that the only 
                qualifying family members who may be taken into account 
                with respect to such spouse are those individuals who 
                were qualifying family members immediately before such 
                finalization.
                    ``(C) Death.--In the case of the death of an 
                eligible individual--
                            ``(i) any spouse of such individual 
                        (determined at the time of such death) shall be 
                        treated as an eligible individual for purposes 
                        of this section and section 7527 for a period 
                        of 36 months beginning with the date of such 
                        death, except that the only qualifying family 
                        members who may be taken into account with 
                        respect to such spouse are those individuals 
                        who were qualifying family members immediately 
                        before such death, and
                            ``(ii) any individual who was a qualifying 
                        family member of the decedent immediately 
                        before such death (or, in the case of an 
                        individual to whom paragraph (4) applies, the 
                        taxpayer to whom the deduction under section 
                        151 is allowable) shall be treated as an 
                        eligible individual for purposes of this 
                        section and section 7527 for a period of 36 
                        months beginning with the date of such death, 
                        except that in determining the amount of such 
                        credit only such qualifying family member may 
                        be taken into account.''.
            (2) Conforming amendment.--Section 173(f) of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding 
        at the end the following:
            ``(8) Continued qualification of family members after 
        certain events.--
                    ``(A) Medicare eligibility.--In the case of any 
                month which would be an eligible coverage month with 
                respect to an eligible individual but for paragraph 
                (7)(B)(i), such month shall be treated as an eligible 
                coverage month with respect to such eligible individual 
                solely for purposes of determining the eligibility of 
                qualifying family members of such individual under this 
                subsection. This subparagraph shall only apply with 
                respect to the first 36 months after such eligible 
                individual is first entitled to the benefits described 
                in paragraph (7)(B)(i).
                    ``(B) Divorce.--In the case of the finalization of 
                a divorce between an eligible individual and such 
                individual's spouse, such spouse shall be treated as an 
                eligible individual for purposes of this subsection for 
                a period of 36 months beginning with the date of such 
                finalization, except that the only qualifying family 
                members who may be taken into account with respect to 
                such spouse are those individuals who were qualifying 
                family members immediately before such finalization.
                    ``(C) Death.--In the case of the death of an 
                eligible individual--
                            ``(i) any spouse of such individual 
                        (determined at the time of such death) shall be 
                        treated as an eligible individual for purposes 
                        of this subsection for a period of 36 months 
                        beginning with the date of such death, except 
                        that the only qualifying family members who may 
                        be taken into account with respect to such 
                        spouse are those individuals who were 
                        qualifying family members immediately before 
                        such death, and
                            ``(ii) any individual who was a qualifying 
                        family member of the decedent immediately 
                        before such death shall be treated as an 
                        eligible individual for purposes this 
                        subsection for a period of 36 months beginning 
                        with the date of such death, except that no 
                        qualifying family members may be taken into 
                        account with respect to such individual.''.
    (e) Modification of Creditable Coverage Requirement.--
            (1) In general.--Subparagraph (B) of section 35(e)(2) of 
        such Code is amended to read as follows:
                    ``(B) Qualifying individual.--For purposes of this 
                paragraph, the term `qualifying individual' means an 
                eligible individual and the qualifying family members 
                of such individual if such individual meets the 
                requirements of clauses (iii) and (iv) of subsection 
                (b)(1)(A) and--
                            ``(i) in the case of an eligible TAA 
                        recipient or an eligible alternative TAA 
                        recipient, has (as of the date on which the 
                        individual seeks to enroll in the coverage 
                        described in subparagraphs (B) through (H) of 
                        paragraph (1)) a period of creditable coverage 
                        (as defined in section 9801(c)), or
                            ``(ii) in the case of an eligible PBGC 
                        pension recipient, enrolls in such coverage 
                        during the 90-day period beginning on the later 
                        of--
                                    ``(I) the last day of the first 
                                month with respect to which such 
                                recipient becomes an eligible PBGC 
                                pension recipient, or
                                    ``(II) the date of the enactment of 
                                this subparagraph.''.
            (2) Conforming amendment.--Clause (ii) of section 
        172(f)(2)(B) of the Workforce Investment Act of 1998 (29 U.S.C. 
        2918(f)(2)(B)) is amended to read as follows:
                            ``(ii) Qualifying individual.--For purposes 
                        of this subparagraph, the term `qualifying 
                        individual' means an eligible individual and 
                        the qualifying family members of such 
                        individual if such individual meets the 
                        requirements of clauses (iii) and (iv) of 
                        section 35(b)(1)(A) of the Internal Revenue 
                        Code of 1986 and--
                                    ``(I) in the case of an eligible 
                                TAA recipient or an eligible 
                                alternative TAA recipient, has (as of 
                                the date on which the individual seeks 
                                to enroll in the coverage described in 
                                clauses (ii) through (viii) of 
                                subparagraph (A)) a period of 
                                creditable coverage (as defined in 
                                section 9801(c) of such Code), or
                                    ``(II) in the case of an eligible 
                                PBGC pension recipient, enrolls in such 
                                coverage during the 90-day period 
                                beginning on the later of--
                                            ``(aa) the last day of the 
                                        first month with respect to 
                                        which such recipient becomes an 
                                        eligible PBGC pension 
                                        recipient, or
                                            ``(bb) the date of the 
                                        enactment of this clause.''.
            (3) Outreach.--The Secretary of the Treasury shall carry 
        out a program to notify individuals prior to their becoming 
        eligible PBGC pension recipients (as defined in section 35 of 
        the Internal Revenue Code of 1986) of the requirement of 
        subsection (e)(2)(B)(ii) of such section, as added by this 
        subsection.
    (f) TAA Pre-Certification Period Rule for Purposes of Determining 
Whether There Is a 63-Day Lapse in Creditable Coverage.--
            (1) IRC amendment.--Section 9801(c)(2) of the Internal 
        Revenue Code of 1986 (relating to not counting periods before 
        significant breaks in creditable coverage) is amended by adding 
        at the end the following new subparagraph:
                    ``(D) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date which is 5 days after the postmark 
                        date of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 shall 
                        not be taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 4980B(f)(5)(C)(iv).''.
            (2) ERISA amendment.--Section 701(c)(2) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) 
        is amended by adding at the end the following new subparagraph:
                    ``(C) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date that is 5 days after the postmark date 
                        of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 of the 
                        Internal Revenue Code of 1986 shall not be 
                        taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 605(b)(4)(c).''.
            (3) PHSA amendment.--Section 2701(c)(2) of the Public 
        Health Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding 
        at the end the following new subparagraph:
                    ``(C) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date that is 5 days after the postmark date 
                        of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 of the 
                        Internal Revenue Code of 1986 shall not be 
                        taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 2205(b)(4)(c).''.
    (g) Rating System Requirement for Certain State-Based Coverage.--
            (1) In general.--Subparagraph (A) of section 35(e)(2) of 
        such Code is amended by adding at the end the following new 
        clause:
                            ``(v) Rating system requirement.--In the 
                        case of coverage described in paragraph 
                        (1)(F)(ii), the premiums for such coverage are 
                        restricted, based on a community rating system 
                        with respect to eligible individuals and their 
                        qualifying family members, or based on a rate-
                        band system under which the maximum rate which 
                        may be charged does not exceed 150 percent of 
                        the standard rate with respect to eligible 
                        individuals and their qualifying family 
                        members.''.
            (2) Conforming amendment.--Clause (i) of section 
        173(f)(2)(B) of the Workforce Investment Act of 1998 (29 U.S.C. 
        2918(f)(2)(B)) is amended by adding at the end the following 
        new subclause:
                                    ``(V) Rating system requirement.--
                                In the case of coverage described in 
                                subparagraph (A)(vi)(II), the premiums 
                                for such coverage are restricted, based 
                                on a community rating system with 
                                respect to eligible individuals and 
                                their qualifying family members, or 
                                based on a rate-band system under which 
                                the maximum rate which may be charged 
                                does not exceed 150 percent of the 
                                standard rate with respect to eligible 
                                individuals and their qualifying family 
                                members.''.
    (h) Termination of Program.--
            (1) In general.--Section 35 of such Code is amended by 
        adding at the end the following new subsection:
    ``(h) Termination.--An individual shall not be treated as an 
eligible individual for purposes of this section or section 7527 for 
any month beginning after December 31, 2009, unless such individual was 
an eligible individual for a continuous period of months ending with 
such month and beginning before such date.''.
            (2) Conforming amendment.--Subsection (f) of section 173 of 
        the Workforce Investment Act of 1998 (29 U.S.C. 2918) is 
        amended by adding at the end the following new paragraph:
            ``(8) Termination.--An individual shall not be treated as 
        an eligible individual for purposes of this subsection for any 
        month beginning after December 31, 2009, unless such individual 
        was an eligible individual for a continuous period of months 
        ending with such month and beginning before such date.''.
    (i) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        months beginning after December 31, 2007, in taxable years 
        ending after such date.
            (2) Rating system requirement.--The amendments made by 
        subsection (g) shall apply to months beginning after March 31, 
        2008, in taxable years ending after such date.
            (3) Discretion to delay effective date for purposes of 
        advance payment program.--Solely for purposes of carrying out 
        the advance payment program under section 7527, the Secretary 
        may provide that one or more amendments made by subsections 
        (b), (c), and (d) shall not apply to one or more months 
        beginning before March 31, 2008, to the extent that the 
        Secretary determines that such delay is necessary to properly 
        implement any such amendment as part of such program.
    (j) GAO Study and Report.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study regarding the health insurance tax credit 
        allowed under section 35 of the Internal Revenue Code of 1986.
            (2) Report.--Not later than March 1, 2009, the Comptroller 
        General shall submit a report to Congress regarding the results 
        of the study conducted under paragraph (1). Such report shall 
        include an analysis of--
                    (A) the administrative costs--
                            (i) of the Federal Government with respect 
                        to such credit and the advance payment of such 
                        credit under section 7527 of such Code, and
                            (ii) of providers of qualified health 
                        insurance with respect to providing such 
                        insurance to eligible individuals and their 
                        qualifying family members,
                    (B) the health status and relative risk status of 
                eligible individuals and qualifying family members 
                covered under such insurance,
                    (C) participation in such credit and the advance 
                payment of such credit by eligible individuals and 
                their qualifying family members, including the reasons 
                why such individuals did or did not participate and the 
                effect of the amendments made by this section on such 
                participation, and
                    (D) the extent to which eligible individuals and 
                their qualifying family members--
                            (i) obtained health insurance other than 
                        qualifying health insurance, or
                            (ii) went without health insurance 
                        coverage.
            (3) Access to records.--For purposes of conducting the 
        study required under this subsection, the Comptroller General 
        and any of his duly authorized representatives shall have 
        access to, and the right to examine and copy, all documents, 
        records, and other recorded information--
                    (A) within the possession or control of providers 
                of qualified health insurance, and
                    (B) determined by the Comptroller General (or any 
                such representative) to be relevant to the study.
        The Comptroller General shall not disclose the identity of any 
        provider of qualified health insurance or any eligible 
        individual in making any information obtained under this 
        section available to the public.
            (4) Definitions.--Any term which is defined in section 35 
        of the Internal Revenue Code of 1986 shall have the same 
        meaning when used in this subsection.

                       Subtitle E--Wage Insurance

SEC. 151. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM FOR OLDER 
              WORKERS.

    (a) In General.--Section 246 of the Trade Act of 1974 (19 U.S.C. 
2318) is amended--
            (1) by amending the heading to read as follows: 
        ``reemployment trade adjustment assistance'';
            (2) in subsection (a)--
                    (A) in paragraph (1), by striking ``alternative'' 
                and inserting ``reemployment'';
                    (B) in paragraph (2)(A), by striking ``for a period 
                not to exceed 2 years'' and inserting ``for the 
                eligibility period under paragraph (3)(C)''; and
                    (C) by striking paragraphs (3) through (5) and 
                inserting the following:
            ``(3) Eligibility.--
                    ``(A) In general.--A group of workers certified 
                under subchapter A as eligible for adjustment 
                assistance under subchapter A is eligible for benefits 
                described in paragraph (2) under the program 
                established under paragraph (1).
                    ``(B) Individual eligibility.--A worker in a group 
                of workers described in subparagraph (A) may elect to 
                receive benefits described in paragraph (2) under the 
                program established under paragraph (1) if the worker--
                            ``(i) is at least 50 years of age;
                            ``(ii) earns not more than $60,000 each 
                        year in wages from reemployment;
                            ``(iii)(I) is employed on a full-time basis 
                        as defined by State law in the State in which 
                        the worker is employed; or
                            ``(II) is employed at least 20 hours per 
                        week and is enrolled in training approved under 
                        section 236; and
                            ``(iv) does not return to the employment 
                        from which the worker was separated.
                In the case of a worker described in clause (iii)(II), 
                the percentage referred to in paragraph (2)(A) shall be 
                deemed to be a percentage equal to \1/2\ of the ratio 
                of weekly hours of employment referred to in clause 
                (iii)(II) to weekly hours of employment of that worker 
                at the time of separation (but not more than 50 
                percent).
                    ``(C) Eligibility period for payments.--A worker in 
                a group of workers described in subparagraph (A) may 
                receive payments described in paragraph (2)(A) under 
                the program established under paragraph (1) for a 
                period not to exceed 2 years from the date on which the 
                worker exhausts all rights to unemployment insurance 
                based on the separation of the worker from adversely 
                affected employment or the date on which the worker 
                obtains reemployment, whichever is earlier.
                    ``(D) Training.--A worker described in subparagraph 
                (B) shall be eligible to receive training approved 
                under section 236.
            ``(4) Total amount of payments.--The payments described in 
        paragraph (2)(A) made to a worker may not exceed $12,000 per 
        worker during the eligibility period under paragraph (3)(C).
            ``(5) Limitation on other benefits.--A worker described in 
        paragraph (3) may not receive a trade readjustment allowance 
        under part I of subchapter B during any week for which the 
        worker receives a payment described in paragraph (2)(A).''; and
            (3) in subsection (b)(2), by striking ``subsection 
        (a)(3)(B)'' and inserting ``subsection (a)(3)''.
    (b) Extension of Program.--Subsection (b)(1) of such section is 
amended by striking ``5'' and inserting ``10''.
    (c) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by striking the item relating to section 
246 and inserting the following:

``Sec. 246. Reemployment trade adjustment assistance program.''.

                       Subtitle F--Other Matters

SEC. 161. AGREEMENTS WITH STATES.

    (a) In General.--Subsection (a) of section 239 of the Trade Act of 
1974 (19 U.S.C. 2311) is amended--
            (1) by striking ``will'' each place it appears and 
        inserting ``shall''; and
            (2) in clause (2), to read as follows: ``(2) in accordance 
        with subsection (f), shall provide adversely affected workers 
        covered by a certification under subchapter A the employment 
        and case management services described in section 235''.
    (b) Outreach.--Subsection (f) of such section is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) by striking paragraph (4) and inserting the following:
            ``(4) perform outreach, intake (which may include worker 
        profiling) and orientation for assistance and benefits 
        available under this chapter for adversely affected workers 
        covered by a certification under subchapter A of this chapter, 
        and''; and
            (3) by adding at the end the following:
            ``(5) provide adversely affected workers covered by a 
        certification under subchapter A of this chapter with 
        employment and case management services described in section 
        235.''.

SEC. 162. FRAUD AND RECOVERY OF OVERPAYMENTS.

    Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1)) 
is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by striking ``may waive'' and inserting ``shall 
                waive''; and
                    (B) by striking ``, in accordance with guidelines 
                prescribed by the Secretary,'' and
            (2) in subparagraph (B), by striking ``would be contrary to 
        equity and good conscience'' and inserting ``would cause a 
        financial hardship for the individual (or the individual's 
        household, if applicable) when taking into consideration the 
        income and resources reasonably available to the individual (or 
        household) and other ordinary living expenses of the individual 
        (or household)''.

SEC. 163. TECHNICAL AMENDMENTS.

    (a) In General.--Section 249 of the Trade Act of 1974 (19 U.S.C. 
2321) is amended--
            (1) in the heading, by striking ``subpena'' and inserting 
        ``subpoena''; and
            (2) in the text, by striking ``subpena'' and inserting 
        ``subpoena'' each place it appears.
    (b) Clerical Amendment.--The item relating to section 249 in the 
table of contents for title II of the Trade Act of 1974 is amended to 
read as follows:

``249. Subpoena power.''.

SEC. 164. OFFICE OF TRADE ADJUSTMENT ASSISTANCE; DEPUTY ASSISTANT 
              SECRETARY FOR TRADE ADJUSTMENT ASSISTANCE.

    (a) In General.--Subchapter C of chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end 
the following:

``SEC. 250. OFFICE OF TRADE ADJUSTMENT ASSISTANCE; DEPUTY ASSISTANT 
              SECRETARY FOR TRADE ADJUSTMENT ASSISTANCE.

    ``(a) Establishment.--There is established in the Department of 
Labor an office to be known as the Office of Trade Adjustment 
Assistance (hereinafter in this section referred to as the `Office').
    ``(b) Head of Office.--The head of the Office shall be the Deputy 
Assistant Secretary for Trade Adjustment Assistance (hereinafter in 
this section referred to as the `Deputy Assistant Secretary'), who 
shall be appointed by the President, by and with the advice and consent 
of the Senate.
    ``(c) Principle Functions.--The principle functions of the Deputy 
Assistant Secretary shall be--
            ``(1) to oversee and implement the administration of trade 
        adjustment assistance for workers under this chapter; and
            ``(2) to carry out functions delegated to the Secretary of 
        Labor under this chapter, including--
                    ``(A) making determinations under section 223 or 
                223A;
                    ``(B) providing information about the program and 
                assisting groups of workers and other parties to 
                prepare petitions or applications for program benefits 
                under section 225;
                    ``(C) ensuring workers covered by a certification 
                receive the employment services described in section 
                235;
                    ``(D) ensuring States fully comply with agreements 
                under section 239;
                    ``(E) acting as a vigorous advocate for workers 
                applying for assistance under this chapter;
                    ``(F) receiving complaints, grievances, and 
                requests for assistance from workers under this 
                chapter;
                    ``(G) establishing and overseeing a hotline that 
                workers, employers, and other entities may call to 
                obtain information regarding eligibility criteria, 
                procedural requirements, and benefits available under 
                this chapter; and
                    ``(H) carrying out such other duties with respect 
                to this chapter as the President may specify for 
                purposes of this section.''.
    (b) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by inserting after the item relating to 
section 249 the following:

``Sec. 250. Office of Trade Adjustment Assistance; Deputy Assistant 
                            Secretary for Trade Adjustment 
                            Assistance.''.

SEC. 165. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS.

    (a) In General.--Subchapter C of chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end 
the following:

``SEC. 250A. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS.

    ``(a) In General.--Not later than 90 days after the date of the 
enactment of the Trade and Globalization Assistance Act of 2007, the 
Secretary shall implement a system to collect and publicly disseminate 
data on all adversely affected workers who apply for or receive 
adjustment assistance under this chapter.
    ``(b) Data To Be Included.--The system required under subsection 
(a) shall include collection of the following data classified by State, 
industry, and nationwide totals:
            ``(1) The number of petitions and number of workers covered 
        by petitions filed, certified and denied.
            ``(2) The date of filing of each petition and the date of 
        the determination, and the average processing time, by year, on 
        petitions.
            ``(3) A breakdown, by the claimed cause of dislocation, of 
        petitions denied, such as increased imports, shift in 
        production, and other bases for eligibility.
            ``(4) A breakdown of the number of certified petitions by 
        the cause of dislocation, such as increase in imports, shift in 
        production, and other causes of eligibility for adjustment 
        assistance.
            ``(5) The number of workers participating in any aspect of 
        the adjustment assistance program under this chapter.
            ``(6) Reemployment rates and sectors in which dislocated 
        workers have been employed after receiving adjustment 
        assistance under this chapter.
            ``(7) The type of adjustment assistance received under this 
        chapter, such as training or education assistance, reemployment 
        adjustment assistance, cash benefits, health coverage, and 
        relocation allowances, the number of workers receiving each 
        type of assistance, and the average duration of time workers 
        receive each type of assistance.
            ``(8) The fields of training or education in which workers 
        receiving training or education benefits under this chapter are 
        enrolled, the number of workers participating in each field, 
        classified by major types of training or education.
            ``(9) The number of workers leaving training before 
        completing a course of training or education, classified by the 
        cause for early termination.
            ``(10) The number of training waivers granted, classified 
        by type of waiver.
            ``(11) The wages of workers before separation and any job 
        obtained after receiving benefits under the trade adjustment 
        assistance program under this chapter.
            ``(12) The average duration of training that was completed.
    ``(c) Report.--Not later than 16 months after the date of the 
enactment of the Trade and Globalization Assistance Act of 2007, and 
annually thereafter, the Secretary shall submit to the Committee on 
Ways and Means of the House of Representatives, the Committee on 
Finance of the Senate, and any other congressional committee of 
appropriate jurisdiction, a report on whether changes to eligibility 
requirements, benefits, or training funding under the trade adjustment 
assistance program under this chapter should be made based on the data 
collected under subsection (b).
    ``(d) Availability on Website of the Department of Labor.--The 
Secretary shall make the data collected under subsection (b) publicly 
available on the website of the Department of Labor, in a searchable 
format, and shall update the data quarterly.''.
    (b) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by inserting after the item relating to 
section 250 (as added by section 163(b) of this Act) the following:

``Sec. 250A. Collection of data and reports; information to workers.''.

SEC. 166. EXTENSION OF TAA PROGRAM.

    (a) For Workers.--Section 245(a) of the Trade Act of 1974 (19 
U.S.C. 2317(a)) is amended by striking ``December 31, 2007'' and 
inserting ``September 30, 2012''.
    (b) Termination.--Section 285 of the Trade Act of 1974 (19 U.S.C. 
2271 note) is amended by striking ``December 31, 2007'' each place it 
appears and inserting ``September 30, 2012''.
    (c) For Farmers.--Section 298(a) of the Trade Act of 1974 (19 
U.S.C. 2401g(a)) is amended by adding at the end the following: ``There 
are authorized to be appropriated to the Department of Agriculture not 
to exceed $81,000,000 for the 9-month period beginning on January 1, 
2008, and $90,000,000 for each of the fiscal years 2009 through 2012 to 
carry out the purposes of this chapter.''.

SEC. 167. JUDICIAL REVIEW.

    Section 284 of the Trade Act of 1974 (19 U.S.C. 2395) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``or 223A'' after ``223''; and
                    (B) by striking ``271'' and inserting ``273'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Standard of Review.--The Court of International Trade shall 
have jurisdiction to review the case as provided in section 706 of 
title 5, Untied States Code. The findings of fact by the Secretary of 
Labor, the Secretary of Commerce, or the Secretary of Agriculture, as 
the case may be, must be supported by substantial evidence and must be 
based on a reasonable investigation. The Court of International Trade 
may--
            ``(1) remand the case to such Secretary to take further 
        evidence; or
            ``(2) reverse the action of such Secretary.
If the case is remanded under paragraph (1), the Secretary concerned 
may make new or modified findings of fact and may modify the 
Secretary's previous action, and shall certify to the court the record 
of the further proceedings. The new or modified findings of fact must 
be supported by substantial evidence and must be based on a reasonable 
investigation.''; and
            (3) in subsection (c), by striking the first sentence.

SEC. 168. LIBERAL CONSTRUCTION OF CERTIFICATION OF WORKERS AND FIRMS.

    (a) In General.--Chapter 5 of title II of the Trade Act of 1974 (19 
U.S.C. 2391 et seq.) is amended by adding at the end the following:

``SEC. 288. LIBERAL CONSTRUCTION OF CERTIFICATION OF WORKERS AND FIRMS.

    ``The provisions of chapter 2 (relating to adjustment assistance 
for workers) and the provisions of chapter 3 (relating to adjustment 
assistance for firms) shall be liberally construed in favor of 
certifying workers for assistance under such chapter 2 and certifying 
firms for assistance under such chapter 3.''.
    (b) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by inserting after the item relating to 
section 287 the following:

``Sec. 288. Liberal construction of certification of workers and 
                            firms.''.

            TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

SEC. 201. TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.

    (a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C. 
2341) is amended--
            (1) in subsection (a), by inserting ``or service sector 
        firm'' after ``(including any agricultural firm'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``or service sector firm'' 
                        after ``any agricultural firm''; and
                            (ii) in subparagraph (B)--
                                    (I) in clause (i), by striking ``, 
                                or'' and inserting a comma;
                                    (II) in clause (ii)--
                                            (aa) by inserting ``or 
                                        service'' after ``of an 
                                        article''; and
                                            (bb) by striking ``, and'' 
                                        and inserting a comma; and
                                    (III) by adding at the end the 
                                following:
                            ``(iii) sales or production, or both, of 
                        the firm, during the period consisting of not 
                        more than 36 months preceding the most recent 
                        12-month period for which data are available, 
                        have decreased absolutely, or
                            ``(iv) sales or production, or both, of an 
                        article or service that accounted for not less 
                        than 25 percent of the total production or 
                        sales of the firm during the 36-month period 
                        preceding the most recent 12-month period for 
                        which data are available have decreased 
                        absolutely, and''; and
                    (B) in the matter preceding subparagraph (A) of 
                paragraph (2) , by striking ``paragraph (1)(C)--'' and 
                inserting ``paragraph (1)(C):''; and
            (3) by adding at the end the following:
    ``(e) Basis for the Determination of the Secretary.--
            ``(1) Increased imports.--For purposes of subsection 
        (c)(1)(C), the Secretary--
                    ``(A) may use data from any of the preceding three 
                calendar years to determine if the requirements of such 
                subsection have been met;
                    ``(B) may determine that increases of imports of 
                like or directly competitive articles or services exist 
                if customers accounting for a significant percentage of 
                the decrease in the sales of the firm certify to the 
                Secretary that such customers are obtaining such 
                articles or services from a foreign country; and
                    ``(C) may, in determining whether increased imports 
                of like or directly competitive articles or services 
                exist, give special consideration to whether it is 
                difficult to demonstrate an increase of such imports if 
                the share of such imports relative to production or 
                consumption in the United States of the article 
                produced or service provided by the firm concerned is 
                already significant.
            ``(2) Process and methods for obtaining certifications.--
                    ``(A) Request by petitioner.--If requested by a 
                firm, the Secretary shall obtain the certifications 
                under paragraph (1)(B) in such manner as the Secretary 
                determines is appropriate.
                    ``(B) Protection of confidential information.--The 
                Secretary may not release information obtained under 
                subparagraph (A) that the Secretary considers to be 
                confidential business information unless the party 
                submitting the confidential business information had 
                notice, at the time of submission, that such 
                information would be released by the Secretary, or such 
                party subsequently consents to the release of the 
                information. Nothing in this subparagraph shall be 
                construed to prohibit a court from requiring the 
                submission of such confidential business information to 
                the court in camera.
    ``(f) Notification to Firms of Availability of Benefits.--Upon 
receiving notice from the Secretary of Labor under section 225(c) of 
the identity of a firm or firms that are covered by a certification 
issued under section 223 or 223A, the Secretary of Commerce shall 
notify such firm or firms of the availability of adjustment assistance 
under this chapter.''.
    (b) Definition.--Section 261 of the Trade Act of 1974 (19 U.S.C. 
2351) is amended--
            (1) by striking ``For purposes of'' and inserting ``(a) 
        Firm.--For purposes of''; and
            (2) by adding at the end the following:
    ``(b) Service Sector Firm.--For purposes of this chapter, the term 
`service sector firm' means a firm engaged in the business of providing 
services.''.

SEC. 202. EXTENSION OF AUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE FOR 
              FIRMS.

    Section 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b)) is 
amended--
            (1) by striking ``and $4,000,000 for the 3-month period 
        beginning on October 1, 2007,'' inserting ``and $50,000,000 for 
        each of fiscal years 2008 through 2012,'' after ``fiscal years 
        2003 through 2007,''; and
            (2) by inserting after the first sentence the following: 
        ``Of the amounts appropriated pursuant to this subsection for 
        each fiscal year, $350,000 shall be available for full-time 
        positions in the Department of Commerce to administer the 
        program under this chapter.''.

SEC. 203. INDUSTRY-WIDE PROGRAMS FOR THE DEVELOPMENT OF NEW SERVICES.

    Section 265(a) of the Trade Act of 1974 (19 U.S.C. 2355(a)) is 
amended--
            (1) in the first sentence, by striking ``new product 
        development'' and inserting ``the development of new products 
        and services''; and
            (2) in the second sentence, by inserting ``, 223A,'' after 
        ``223''.

SEC. 204. DEMONSTRATION PROJECT ON STRATEGIC TRADE TRANSFORMATION 
              ASSISTANCE.

    (a) In General.--Chapter 3 of title II of the Trade Act of 1974 (19 
U.S.C. 2341 et seq.) is amended by adding at the end the following:

``SEC. 266. DEMONSTRATION PROJECT ON STRATEGIC TRADE TRANSFORMATION 
              ASSISTANCE.

    ``(a) In General.--The Secretary shall conduct a demonstration 
project (in this section referred to as the `project') to demonstrate a 
programmatic framework that will allow small- and medium-sized 
manufacturers in the United States to gain access to resources that 
will help them better compete domestically and globally. The project 
should include among its primary goals the following:
            ``(1) Expanding the number of firms capable of taking 
        advantage of a trade remedy program without drastically 
        increasing the cost of the remedy to the taxpayer.
            ``(2) Certifying and providing assistance to approximately 
        700 firms.
            ``(3) Integrating the benefits of other applicable 
        government programs into the project, and making benefits from 
        the project subject to that integration.
            ``(4) Increasing the number of small- and medium-sized 
        firms that export and increasing the value of exports from 
        these firms.
            ``(5) Increasing revenues that small- and medium-sized 
        firms derive from sales to the Federal Government and State and 
        local governments.
            ``(6) Expanding technology availability to the small- and 
        medium-sized firm segment by increasing access to, and adoption 
        of, the latest technologies being developed at Federal 
        laboratories and at universities.
            ``(7) Improving the business and manufacturing practices of 
        small- and medium-sized firms to enable them to become 
        competitive in a global marketplace.
    ``(b) Advisory Board.--
            ``(1) In general.--In carrying out the project, the 
        Secretary shall establish an advisory board comprised of 
        representatives described in paragraph (2) to provide advice 
        and recommendations with respect to the establishment and 
        operation of the project.
            ``(2) Representatives.--Representatives referred to in 
        paragraph (1) shall consist of the respective executive 
        directors of each Trade Adjustment Assistance Center affiliated 
        with the trade adjustment assistance for firms program under 
        this chapter.
    ``(c) Duration.--The Secretary shall conduct the project for the 3-
year period beginning on the date that is 180 days after the date of 
the enactment of this Act.
    ``(d) Administration of Project.--In implementing the project, the 
Secretary shall give preference, in entering into contracts for the 
operation and administration of the project, to Trade Adjustment 
Assistance Centers affiliated with the trade adjustment assistance for 
firms program under this chapter.
    ``(e) Report.--The Secretary shall submit to the Congress a report 
on the project under this section not later than 6 months after the 
date of the completion of the project. Such report shall include--
            ``(1) information on the impact of the project on 
        mitigating the impact of imports in terms of competitiveness; 
        and
            ``(2) recommendations on the cost-effectiveness of 
        extending or expanding the project.
    ``(f) Funding.--Of the amounts made available to carry out this 
chapter for fiscal years 2008 through 2012, not more than $1,000,000 
for each such fiscal year is authorized to be made available to carry 
out this section.''.
    (b) Clerical Amendment.--The table of contents for title II of the 
Trade Act of 1974 is amended by inserting after the item relating to 
section 265 the following:

``Sec. 266. Demonstration project on strategic trade transformation 
                            assistance.''.

                   TITLE III--UNEMPLOYMENT INSURANCE

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Unemployment Insurance 
Modernization Act''.

SEC. 302. SPECIAL TRANSFERS TO STATE ACCOUNTS IN THE UNEMPLOYMENT TRUST 
              FUND.

    (a) In General.--Section 903 of the Social Security Act (42 U.S.C. 
1103) is amended by adding at the end the following:

``Special Transfers in Fiscal Years 2008 Through 2012 for Modernization

    ``(f)(1)(A) In addition to any other amounts, the Secretary of 
Labor shall provide for the making of unemployment compensation 
modernization incentive payments (hereinafter `incentive payments') to 
the accounts of the States in the Unemployment Trust Fund, by transfer 
from amounts reserved for that purpose in the Federal unemployment 
account, in accordance with succeeding provisions of this subsection.
    ``(B) The maximum incentive payment allowable under this subsection 
with respect to any State shall, as determined by the Secretary of 
Labor, be equal to the amount obtained by multiplying $7,000,000,000 
times the same ratio as is applicable under subsection (a)(2)(B) for 
purposes of determining such State's share of any funds to be 
transferred under subsection (a) as of October 1, 2007.
    ``(C) Of the maximum incentive payment determined under 
subparagraph (B) with respect to a State--
            ``(i) one-third shall be transferred to the account of such 
        State upon a certification under paragraph (4)(B) that the 
        State law of such State meets the requirements of paragraph 
        (2); and
            ``(ii) the remainder shall be transferred to the account of 
        such State upon a certification under paragraph (4)(B) that the 
        State law of such State meets the requirements of paragraph 
        (3).
    ``(2) The State law of a State meets the requirements of this 
paragraph if such State law--
            ``(A) uses a base period that includes the most recently 
        completed calendar quarter before the start of the benefit year 
        for purposes of determining eligibility for unemployment 
        compensation; or
            ``(B) provides that, in the case of an individual who would 
        not otherwise be eligible for unemployment compensation under 
        the State law because of the use of a base period that does not 
        include the most recently completed calendar quarter before the 
        start of the benefit year, eligibility shall be determined 
        using a base period that includes such calendar quarter.
    ``(3) The State law of a State meets the requirements of this 
paragraph if such State law includes provisions to carry out at least 2 
of the following subparagraphs:
            ``(A) An individual shall not be denied regular 
        unemployment compensation under any State law provisions 
        relating to availability for work, active search for work, or 
        refusal to accept work, solely because such individual is 
        seeking only part-time (and not full-time) work, except that 
        the State law provisions carrying out this subparagraph may 
        exclude an individual if a majority of the weeks of work in 
        such individual's base period do not include part-time work.
            ``(B) An individual shall not be disqualified from regular 
        unemployment compensation for separating from employment if 
        that separation is for compelling family reasons. For purposes 
        of this subparagraph, the term `compelling family reasons' 
        includes at least the following:
                    ``(i) Domestic violence (verified by such 
                reasonable and confidential documentation as the State 
                law may require) which causes the individual reasonably 
                to believe that such individual's continued employment 
                would jeopardize the safety of the individual or of any 
                member of the individual's immediate family.
                    ``(ii) The illness or disability of a member of the 
                individual's immediate family.
                    ``(iii) The need for the individual to accompany 
                such individual's spouse--
                            ``(I) to a place from which it is 
                        impractical for such individual to commute; and
                            ``(II) due to a change in location of the 
                        spouse's employment.
            ``(C) Weekly unemployment compensation is payable under 
        this subparagraph to any individual who is unemployed (as 
        determined under the State unemployment compensation law), has 
        exhausted all rights to regular and (if applicable) extended 
        unemployment compensation under the State law, and is enrolled 
        and making satisfactory progress in a State-approved training 
        program or in a job training program authorized under the 
        Workforce Investment Act of 1998. Such program shall prepare 
        individuals who have been separated from a declining 
        occupation, or who have been involuntarily and indefinitely 
        separated from employment as a result of a permanent reduction 
        of operations at the individual's place of employment, for 
        entry into a high-demand occupation. The amount of unemployment 
        compensation payable under this subparagraph to an individual 
        for a week of unemployment shall be equal to the individual's 
        average weekly benefit amount (including dependents' 
        allowances) for the most recent benefit year, and the total 
        amount of unemployment compensation payable under this 
        subparagraph to any individual shall be equal to at least 26 
        times the individual's average weekly benefit amount (including 
        dependents' allowances) for the most recent benefit year.
    ``(4)(A) Any State seeking an incentive payment under this 
subsection shall submit an application therefor at such time, in such 
manner, and complete with such information as the Secretary of Labor 
may by regulation prescribe, including information relating to 
compliance with the requirements of paragraph (2) or (3), as well as 
how the State intends to use the incentive payment to improve or 
strengthen the State's unemployment compensation program. The Secretary 
of Labor shall, within 90 days after receiving a complete application, 
notify the State agency of the State of the Secretary's findings with 
respect to the requirements of paragraph (2) or (3) (or both).
    ``(B) If the Secretary of Labor finds that the State law provisions 
(disregarding any State law provisions which are not then currently in 
effect as permanent law or which are subject to discontinuation under 
certain conditions) meet the requirements of paragraph (2) or (3), as 
the case may be, the Secretary of Labor shall thereupon make a 
certification to that effect to the Secretary of the Treasury, together 
with a certification as to the amount of the incentive payment to be 
transferred to the State account pursuant to that finding. The 
Secretary of the Treasury shall make the appropriate transfer within 30 
days after receiving such certification.
    ``(C)(i) No certification of compliance with the requirements of 
paragraph (2) or (3) may be made with respect to any State whose State 
law is not otherwise eligible for certification under section 303 or 
approvable under section 3304 of the Federal Unemployment Tax Act.
    ``(ii) No certification of compliance with the requirements of 
paragraph (3) may be made with respect to any State whose State law is 
not in compliance with the requirements of paragraph (2).
    ``(iii) No application under subparagraph (A) may be considered if 
submitted before October 1, 2007, or after the latest date necessary 
(as specified by the Secretary of Labor in regulations) to ensure that 
all incentive payments under this subsection are made before October 1, 
2012.
    ``(5)(A) Except as provided in subparagraph (B), any amount 
transferred to the account of a State under this subsection may be used 
by such State only in the payment of cash benefits to individuals with 
respect to their unemployment (including for dependents' allowances and 
for unemployment compensation under paragraph (3)(C)), exclusive of 
expenses of administration.
    ``(B) A State may, subject to the same conditions as set forth in 
subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the 
reference to `subsections (a) and (b)' in subparagraph (D) thereof to 
include this subsection), use any amount transferred to the account of 
such State under this subsection for the administration of its 
unemployment compensation law and public employment offices.
    ``(6) Out of any money in the Federal unemployment account not 
otherwise appropriated, the Secretary of the Treasury shall reserve 
$7,000,000,000 for incentive payments under this subsection. Any amount 
so reserved shall not be taken into account for purposes of any 
determination under section 902, 910, or 1203 of the amount in the 
Federal unemployment account as of any given time. Any amount so 
reserved for which the Secretary of the Treasury has not received a 
certification under paragraph (4)(B) by the deadline described in 
paragraph (4)(C)(iii) shall, upon the close of fiscal year 2012, become 
unrestricted as to use as part of the Federal unemployment account.
    ``(7) For purposes of this subsection, the terms `benefit year', 
`base period', and `week' have the respective meanings given such terms 
under section 205 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note).

       ``Special Transfers in Fiscal Years 2008 Through 2012 for 
                             Administration

    ``(g)(1) Notwithstanding any other provision of this section, the 
total amount available for transfer to the accounts of the States 
pursuant to subsection (a) as of the beginning of each of fiscal years 
2008, 2009, 2010, 2011, and 2012 shall be equal to the total amount 
which (disregarding this subsection) would otherwise be so available, 
increased by $100,000,000.
    ``(2) Each State's share of any additional amount made available by 
this subsection shall be determined, certified, and computed in the 
same manner as described in subsection (a)(2) and shall be subject to 
the same limitations on transfers as described in subsection (b). For 
purposes of applying subsection (b)(2), the balance of any advances 
made to a State under section 1201 shall be credited against, and 
operate to reduce (but not below zero)--
            ``(A) first, any additional amount which, as a result of 
        the enactment of this subsection, is to be transferred to the 
        account of such State in a fiscal year; and
            ``(B) second, any amount which (disregarding this 
        subsection) is otherwise to be transferred to the account of 
        such State pursuant to subsections (a) and (b) in such fiscal 
        year.
    ``(3) Any additional amount transferred to the account of a State 
as a result of the enactment of this subsection--
            ``(A) may be used by the State agency of such State only in 
        the payment of expenses incurred by it for--
                    ``(i) the administration of the provisions of its 
                State law carrying out the purposes of subsection 
                (f)(2) or any subparagraph of subsection (f)(3);
                    ``(ii) improved outreach to individuals who might 
                be eligible for regular unemployment compensation by 
                virtue of any provisions of the State law which are 
                described in clause (i);
                    ``(iii) the improvement of unemployment benefit and 
                unemployment tax operations; and
                    ``(iv) staff-assisted reemployment services for 
                unemployment compensation claimants; and
            ``(B) shall be excluded from the application of subsection 
        (c).
    ``(4) The total additional amount made available by this subsection 
in a fiscal year shall be taken out of the amounts remaining in the 
employment security administration account after subtracting the total 
amount which (disregarding this subsection) is otherwise required to be 
transferred from such account in such fiscal year pursuant to 
subsections (a) and (b).''.
    (b) Regulations.--The Secretary of Labor may prescribe any 
regulations necessary to carry out the amendment made by subsection 
(a).

SEC. 303. EXTENSION OF FUTA TAX.

    Section 3301 of the Internal Revenue Code of 1986 (relating to rate 
of tax) is amended--
            (1) by striking ``2007'' in paragraph (1) and inserting 
        ``2010'', and
            (2) by striking ``2008'' in paragraph (2) and inserting 
        ``2011''.

SEC. 304. SAFETY NET REVIEW COMMISSION.

    (a) Establishment.--The Secretary of Labor shall establish an 
advisory commission to be known as the ``Safety Net Review Commission'' 
(hereinafter in this section referred to as the ``Commission'').
    (b) Function.--It shall be the function of the Commission to 
evaluate the unemployment compensation program, the Trade Adjustment 
Assistance program, the Job Corps program, a program under the 
Workforce Investment Act, and other employment assistance programs, 
including the purpose, goals, countercyclical effectiveness, coverage, 
benefit adequacy, trust fund solvency, funding of State administrative 
costs, administrative efficiency, and any other aspects of each such 
program, as well as any related provisions of the Internal Revenue Code 
of 1986, and to make recommendations for their improvement.
    (c) Members.--
            (1) In general.--The Commission shall consist of 11 members 
        as follows:
                    (A) 5 members appointed by the President, to 
                include representatives of business, labor, State 
                government, and the public.
                    (B) 3 members appointed by the President pro 
                tempore of the Senate, in consultation with the 
                Chairman and ranking member of the Committee on Finance 
                of the Senate.
                    (C) 3 members appointed by the Speaker of the House 
                of Representatives, in consultation with the Chairman 
                and ranking member of the Committee on Ways and Means 
                of the House of Representatives.
            (2) Qualifications.--In appointing members under 
        subparagraphs (B) and (C) of paragraph (1), the President pro 
        tempore of the Senate and the Speaker of the House of 
        Representatives shall each appoint--
                    (A) 1 representative of the interests of business,
                    (B) 1 representative of the interests of labor, and
                    (C) 1 representative of the interests of State 
                governments.
            (3) Vacancies.--A vacancy in the Commission shall be filled 
        in the manner in which the original appointment was made.
            (4) Chairman.--The President shall appoint the Chairman of 
        the Commission from among its members.
    (d) Staff and Other Assistance.--
            (1) In general.--The Commission may engage any technical 
        assistance (including actuarial services) required by the 
        Commission to carry out its functions under this section.
            (2) Assistance from secretary of labor.--The Secretary of 
        Labor shall provide the Commission with any staff, office 
        facilities, and other assistance, and any data prepared by the 
        Department of Labor, required by the Commission to carry out 
        its functions under this section.
    (e) Compensation.--Each member of the Commission--
            (1) shall be entitled to receive compensation at the rate 
        of pay for level V of the Executive Schedule under section 5316 
        of title 5, United States Code, for each day (including travel 
        time) during which such member is engaged in the actual 
        performance of duties vested in the Commission; and
            (2) while engaged in the performance of such duties away 
        from such member's home or regular place of business, shall be 
        allowed travel expenses (including per diem in lieu of 
        subsistence) as authorized by section 5703 of such title 5 for 
        persons in the Government employed intermittently.
    (f) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Commission shall submit to the President and 
the Congress a report setting forth the findings and recommendations of 
the Commission as a result of its evaluation under this section.
    (g) Termination.--The Commission shall terminate 2 months after 
submitting its report pursuant to subsection (f).

              TITLE IV--MANUFACTURING REDEVELOPMENT ZONES

SEC. 401. MANUFACTURING REDEVELOPMENT ZONES.

    (a) In General.--Subchapter Y of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

             ``PART III--MANUFACTURING REDEVELOPMENT ZONES

``Sec. 1400U-1. Designation of manufacturing redevelopment zones.
``Sec. 1400U-2. Eligibility criteria.
``Sec. 1400U-3. Manufacturing redevelopment tax credit bonds.
``Sec. 1400U-4. Tax-exempt manufacturing zone facility bonds.
``Sec. 1400U-5. Additional low-income housing credits.

``SEC. 1400U-1. DESIGNATION OF MANUFACTURING REDEVELOPMENT ZONES.

    ``(a) In General.--From among the areas nominated for designation 
under this section, the Secretary may designate manufacturing 
redevelopment zones.
    ``(b) Limitations on Designations.--The Secretary may designate in 
the aggregate 24 nominated areas as manufacturing redevelopment zones, 
subject to the availability of eligible nominated areas. The Secretary 
shall designate manufacturing redevelopment zones in such manner that 
the aggregate population of all such zones does not exceed 2,000,000.
    ``(c) Period Designation May Be Made.--A designation may be made 
under subsection (a) only during the 2-year period beginning on the 
date of the enactment of this section.
    ``(d) Period for Which Designation Is in Effect.--
            ``(1) In general.--Any designation under this section shall 
        remain in effect during the period beginning on the date of the 
        designation and ending on the earliest of--
                    ``(A) the close of the 10th calendar year beginning 
                on or after the date of the designation,
                    ``(B) the termination date designated by the State 
                and local governments as provided for in their 
                nomination, or
                    ``(C) the date the Secretary revokes the 
                designation.
            ``(2) Revocation of designation.--The Secretary may revoke 
        the designation under this section of an area if such Secretary 
        determines that the local government or the State in which it 
        is located--
                    ``(A) has modified the boundaries of the area, or
                    ``(B) is not complying substantially with, or fails 
                to make progress in achieving the benchmarks set forth 
                in, the strategic plan included with the application
    ``(e) Limitations on Designations; Application.--Rules similar to 
the rules of subsections (e) and (f) of section 1391 shall apply for 
purposes of this section except that the rules of such subsection (f) 
shall be applied with respect to the eligibility criteria specified in 
section 1400U-2.
    ``(f) Determinations of Population.--Any determination of 
population under this part shall be made on the basis of the most 
recent decennial census for which data are available.

``SEC. 1400U-2. ELIGIBILITY CRITERIA.

    ``(a) In General.--A nominated area shall be eligible for 
designation under section 1400U-1 only if--
            ``(1) it meets each of the criteria specified in section 
        1392(a),
            ``(2) the nominated area has experienced a significant 
        decline in the number of individuals employed in manufacturing 
        or has a high concentration of abandoned or underutilized 
        manufacturing facilities, and
            ``(3) no portion of the nominated area is located in an 
        empowerment zone or renewal community, unless the local 
        government which nominated the area elects to terminate such 
        designation as an empowerment zone or renewal community.
    ``(b) Application of Certain Rules; Definitions.--For purposes of 
this subchapter--
            ``(1) rules similar to the rules of subsections (b), (c), 
        and (d) of section 1392 and paragraphs (4), (7), (8), and (9) 
        of section 1393(a) shall apply, and
            ``(2) any term defined in section 1393 shall have the same 
        meaning when used in this subchapter.
    ``(c) Discretion to Adjust Requirements.--In determining whether a 
nominated area is eligible for designation as a manufacturing 
redevelopment zone, the Secretary may, where necessary to carry out the 
purposes of this part, waive the requirement of section 1392(a)(4) if 
it is shown that the nominated area has experienced a loss of 
manufacturing jobs during the previous 20 years which is in excess of 
25 percent.

``SEC. 1400U-3. MANUFACTURING REDEVELOPMENT TAX CREDIT BONDS.

    ``(a) In General.--For purposes of subpart I of part IV of 
subchapter A (relating to qualified tax credit bonds), the term 
`manufacturing redevelopment bond' means any bond issued as part of an 
issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for one or more qualified manufacturing 
        redevelopment purposes,
            ``(2) the bond is not a private activity bond, and
            ``(3) the local government which nominated the area to 
        which such bond relates designates such bond for purposes of 
        this section.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) with respect to any manufacturing redevelopment zone shall not 
exceed $150,000,000.
    ``(c) Qualified Manufacturing Redevelopment Purpose.--For purposes 
of this section, the term `qualified manufacturing redevelopment 
purposes' means capital expenditures paid or incurred with respect to 
property located in a manufacturing redevelopment zone for purposes of 
promoting development or other economic activity in such zone, 
including expenditures for environmental remediation, improvements to 
public infrastructure, and construction of public facilities.
    ``(d) Definitions.--For purposes of this section, any term used in 
this section which is also used in section 54A shall have the same 
meaning given such term by section 54A.

``SEC. 1400U-4. TAX-EXEMPT MANUFACTURING ZONE FACILITY BONDS.

    ``(a) In General.--For purposes of part IV of subchapter B 
(relating to tax exemption requirements for State and local bonds), the 
term `exempt facility bond' includes any bond issued as part of an 
issue if--
            ``(1) 95 percent or more of the net proceeds (as defined in 
        section 150(a)(3)) of such issue are to be used for 
        manufacturing zone property, and
            ``(2) the local government which nominated the area to 
        which such bond relates designates such bond for purposes of 
        this section.
    ``(b) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--The aggregate face amount of bonds which 
        may be designated under subsection (a)(2) with respect to any 
        manufacturing redevelopment zone shall not exceed $230,000,000.
            ``(2) Current refunding not taken into account.--In the 
        case of a refunding (or series of refundings) of a bond 
        designated under this section, the refunding obligation shall 
        be treated as designated under subsection (a)(2) (and shall not 
        be taken into account in applying paragraph (1)) if--
                    ``(A) the amount of the refunding bond does not 
                exceed the outstanding amount of the refunded bond, and
                    ``(B) the refunded bond is redeemed not later than 
                90 days after the date of issuance of the refunding 
                bond.
    ``(c) Limitation on Amount of Bonds Allocable to Any Person.--
            ``(1) In general.--Subsection (a) shall not apply to any 
        issue if the aggregate amount of outstanding manufacturing zone 
        facility bonds allocable to any person (taking into account 
        such issue) exceeds--
                    ``(A) $15,000,000 with respect to any 1 
                manufacturing redevelopment zone, or
                    ``(B) $20,000,000 with respect to all manufacturing 
                redevelopment zones.
            ``(2) Aggregate enterprise zone facility bond benefit.--For 
        purposes of paragraph (1), the aggregate amount of outstanding 
        manufacturing zone facility bonds allocable to any person shall 
        be determined under rules similar to the rules of section 
        144(a)(10), taking into account only bonds to which subsection 
        (a) applies.
    ``(d) Manufacturing Zone Property.--For purposes of this section--
            ``(1) In general.--The term `manufacturing zone property' 
        means any property to which section 168 applies (or would apply 
        but for section 179) if--
                    ``(A) such property was acquired by the taxpayer by 
                purchase (as defined in section 179(d)(2)) after the 
                date on which the designation of the manufacturing 
                redevelopment zone took effect,
                    ``(B) the original use of which in the 
                manufacturing redevelopment zone commences with the 
                taxpayer, and
                    ``(C) substantially all of the use of which is in 
                the manufacturing redevelopment zone and is in the 
                active conduct of a qualified business by the taxpayer 
                in such zone.
            ``(2) Qualified business.--The term `qualified business' 
        means any trade or business except that--
                    ``(A) the rental to others of real property located 
                in a manufacturing redevelopment zone shall be treated 
                as a qualified business only if the property is not 
                residential rental property (as defined in section 
                168(e)(2)), and
                    ``(B) such term shall not include any trade or 
                business consisting of the operation of any facility 
                described in section 144(c)(6)(B).
            ``(3) Special rules for substantial renovations and sale-
        leaseback.--Rules similar to the rules of subsections (a)(2) 
        and (b) of section 1397D shall apply for purposes of this 
        subsection.
    ``(e) Nonapplication of Certain Rules.--Sections 57(a)(5) (relating 
to tax-exempt interest), 146 (relating to volume cap), and 147(d) 
(relating to acquisition of existing property not permitted) shall not 
apply to any manufacturing zone facility bond.

``SEC. 1400U-5. ADDITIONAL LOW-INCOME HOUSING CREDITS.

    ``(a) In General.--For purposes of section 42, in the case of each 
calendar year during which the designation of a manufacturing 
redevelopment zone is in effect, the State housing credit ceiling of 
the State which includes such manufacturing redevelopment zone shall be 
increased by the lesser of--
            ``(1) the aggregate housing credit dollar amount allocated 
        by the State housing credit agency of such State to buildings 
        located in such manufacturing redevelopment zone for such 
        calendar year, or
            ``(2) the excess of--
                    ``(A) the manufacturing zone housing amount with 
                respect to such manufacturing redevelopment zone, over
                    ``(B) the aggregate increases under this subsection 
                with respect to such zone for all preceding calendar 
                years.
    ``(b) Manufacturing Zone Housing Amount.--For purposes of 
subsection (a), the term `manufacturing zone housing amount' means, 
with respect to any manufacturing redevelopment zone, the product of 
$20 multiplied by the population of such zone.
    ``(c) Other Rules.--
            ``(1) Carryovers.--Rules similar to the rules of section 
        1400N(c)(1)(C) shall apply for purposes of this section.
            ``(2) Returned amounts.--If any amount of State housing 
        credit ceiling which was taken into account under subsection 
        (a)(1) is returned within the meaning of section 
        42(h)(3)(C)(iii)--
                    ``(A) such amount shall not be taken into account 
                under such section, and
                    ``(B) such allocation shall cease to be treated as 
                an increase under this subsection for purposes of 
                subsection (a)(2)(B) until reallocated.''.
    (b) Application of Work Opportunity Tax Credit to Manufacturing 
Redevelopment Zones.--Subparagraphs (A) and (B) of section 51(d)(5) of 
such Code are each amended by inserting ``manufacturing redevelopment 
zone,'' after ``renewal community,''.
    (c) Conforming Amendments Related to Manufacturing Redevelopment 
Tax Credit Bonds.--
            (1) General rules.--Part IV of subchapter A of chapter 1 of 
        such Code (relating to credits against tax) is amended by 
        adding at the end the following new subpart:

                ``Subpart I--Qualified Tax Credit Bonds

``Sec. 54A. Credit to holders of qualified tax credit bonds.

``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a qualified tax 
credit bond on one or more credit allowance dates of the bond during 
any taxable year, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal to the sum 
of the credits determined under subsection (b) with respect to such 
dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified tax credit bond is 25 percent of the annual 
        credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified tax credit bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate is the rate which the Secretary 
        estimates will permit the issuance of qualified tax credit 
        bonds with a specified maturity or redemption date without 
        discount and without interest cost to the qualified issuer. The 
        applicable credit rate with respect to any qualified tax credit 
        bond shall be determined as of the first day on which there is 
        a binding, written contract for the sale or exchange of the 
        bond.
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Qualified Tax Credit Bond.--For purposes of this section--
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means a manufacturing redevelopment bond (as 
        defined in section 1400U-3) which is part of an issue that 
        meets the requirements of paragraphs (2), (3), (4), (5), and 
        (6).
            ``(2) Special rules relating to expenditures.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if, as of 
                the date of issuance, the issuer reasonably expects--
                            ``(i) 100 percent or more of the available 
                        project proceeds to be spent for 1 or more 
                        qualified purposes within the 3-year period 
                        beginning on such date of issuance, and
                            ``(ii) a binding commitment with a third 
                        party to spend at least 10 percent of such 
                        available project proceeds will be incurred 
                        within the 6-month period beginning on such 
                        date of issuance.
                    ``(B) Failure to spend required amount of bond 
                proceeds within 3 years.--
                            ``(i) In general.--To the extent that less 
                        than 100 percent of the available project 
                        proceeds of the issue are expended by the close 
                        of the expenditure period for 1 or more 
                        qualified purposes, the issuer shall redeem all 
                        of the nonqualified bonds within 90 days after 
                        the end of such period. For purposes of this 
                        paragraph, the amount of the nonqualified bonds 
                        required to be redeemed shall be determined in 
                        the same manner as under section 142.
                            ``(ii) Expenditure period.--For purposes of 
                        this subpart, the term `expenditure period' 
                        means, with respect to any issue, the 3-year 
                        period beginning on the date of issuance. Such 
                        term shall include any extension of such period 
                        under clause (iii).
                            ``(iii) Extension of period.--Upon 
                        submission of a request prior to the expiration 
                        of the expenditure period (determined without 
                        regard to any extension under this clause), the 
                        Secretary may extend such period if the issuer 
                        establishes that the failure to expend the 
                        proceeds within the original expenditure period 
                        is due to reasonable cause and the expenditures 
                        for qualified purposes will continue to proceed 
                        with due diligence.
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means a purpose 
                specified in section 1400U-3(a)(1).
                    ``(D) Reimbursement.--For purposes of this 
                subtitle, available project proceeds of an issue shall 
                be treated as spent for a qualified purpose if such 
                proceeds are used to reimburse the issuer for amounts 
                paid for a qualified purpose after the date that the 
                Secretary makes an allocation of bond limitation with 
                respect to such issue, but only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the issuer declared its intent to 
                        reimburse such expenditure with the proceeds of 
                        a qualified tax credit bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the issuer adopts 
                        an official intent to reimburse the original 
                        expenditure with such proceeds, and
                            ``(iii) the reimbursement is made not later 
                        than 18 months after the date the original 
                        expenditure is paid.
            ``(3) Reporting.--An issue shall be treated as meeting the 
        requirements of this paragraph if the issuer of qualified tax 
        credit bonds submits reports similar to the reports required 
        under section 149(e).
            ``(4) Special rules relating to arbitrage.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if the 
                issuer satisfies the requirements of section 148 with 
                respect to the proceeds of the issue.
                    ``(B) Special rule for investments during 
                expenditure period.--An issue shall not be treated as 
                failing to meet the requirements of subparagraph (A) by 
                reason of any investment of available project proceeds 
                during the expenditure period.
                    ``(C) Special rule for reserve funds.--An issue 
                shall not be treated as failing to meet the 
                requirements of subparagraph (A) by reason of any fund 
                which is expected to be used to repay such issue if--
                            ``(i) such fund is funded at a rate not 
                        more rapid than equal annual installments,
                            ``(ii) such fund is funded in a manner that 
                        such fund will not exceed the amount necessary 
                        to repay the issue if invested at the maximum 
                        rate permitted under clause (iii), and
                            ``(iii) the yield on such fund is not 
                        greater than the discount rate determined under 
                        paragraph (5)(B) with respect to the issue.
            ``(5) Maturity limitation.--
                    ``(A) In general.--An issue shall not be treated as 
                meeting the requirements of this paragraph if the 
                maturity of any bond which is part of such issue 
                exceeds the maximum term determined by the Secretary 
                under subparagraph (B).
                    ``(B) Maximum term.--During each calendar month, 
                the Secretary shall determine the maximum term 
                permitted under this paragraph for bonds issued during 
                the following calendar month. Such maximum term shall 
                be the term which the Secretary estimates will result 
                in the present value of the obligation to repay the 
                principal on the bond being equal to 50 percent of the 
                face amount of such bond. Such present value shall be 
                determined using as a discount rate the average annual 
                interest rate of tax-exempt obligations having a term 
                of 10 years or more which are issued during the month. 
                If the term as so determined is not a multiple of a 
                whole year, such term shall be rounded to the next 
                highest whole year.
    ``(e) Other Definitions.--For purposes of this subchapter--
            ``(1) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(2) Bond.--The term `bond' includes any obligation.
            ``(3) State.--The term `State' includes the District of 
        Columbia and any possession of the United States.
            ``(4) Available project proceeds.--The term `available 
        project proceeds' means--
                    ``(A) the excess of--
                            ``(i) the proceeds from the sale of an 
                        issue, over
                            ``(ii) the issuance costs financed by the 
                        issue (to the extent that such costs do not 
                        exceed 2 percent of such proceeds), and
                    ``(B) the proceeds from any investment of the 
                excess described in subparagraph (A).
    ``(f) Credit Treated as Interest.--For purposes of this subtitle, 
the credit determined under subsection (a) shall be treated as interest 
which is includible in gross income.
    ``(g) S Corporations and Partnerships.--In the case of a tax credit 
bond held by an S corporation or partnership, the allocation of the 
credit allowed by this section to the shareholders of such corporation 
or partners of such partnership shall be treated as a distribution.
    ``(h) Bonds Held by Regulated Investment Companies and Real Estate 
Investment Trusts.--If any qualified tax credit bond is held by a 
regulated investment company or a real estate investment trust, the 
credit determined under subsection (a) shall be allowed to shareholders 
of such company or beneficiaries of such trust (and any gross income 
included under subsection (f) with respect to such credit shall be 
treated as distributed to such shareholders or beneficiaries) under 
procedures prescribed by the Secretary.''.
            (2) Reporting.--Subsection (d) of section 6049 of such Code 
        (relating to returns regarding payments of interest) is amended 
        by adding at the end the following new paragraph:
            ``(9) Reporting of credit on qualified tax credit bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54A and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54A(e)(1)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
            (3) Other conforming amendments related to tax credit 
        bonds.--
                    (A) Sections 54(c)(2) and 1400N(l)(3)(B) of such 
                Code are each amended by striking ``subpart C'' and 
                inserting ``subparts C and I''.
                    (B) Section 1397E(c)(2) of such Code is amended by 
                striking ``subpart H'' and inserting ``subparts H and 
                I''.
                    (C) Section 6401(b)(1) of such Code is amended by 
                striking ``and H'' and inserting ``H, and I''.
                    (D) The heading of subpart H of part IV of 
                subchapter A of chapter 1 of such Code is amended by 
                striking ``Certain Bonds'' and inserting ``Clean 
                Renewable Energy Bonds''.
                    (E) The table of subparts for part IV of subchapter 
                A of chapter 1 of such Code is amended by striking the 
                item relating to subpart H and inserting the following 
                new items:

``subpart h--nonrefundable credit to holders of clean renewable energy 
                                 bonds

               ``subpart i--qualified tax credit bonds''.

    (d) Clerical Amendment.--The table of parts for subchapter Y of 
chapter 1 of such Code is amended by adding at the end the following 
new item:

            ``Part III--Manufacturing Redevelopment Bonds''.

    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years ending after the date of the enactment of this 
        Act.
            (2) Bond provisions.--Sections 1400U-3 and 1400U-4 of the 
        Internal Revenue Code of 1986 (as added by subsection (a)), and 
        the amendments made by subsection (c), shall apply to 
        obligations issued after the date of the enactment of this Act.
            (3) Work opportunity tax credit.--The amendments made by 
        subsection (b) shall apply to individuals who begin work for 
        the employer after the date of the enactment of this Act.

SEC. 402. DELAY IN APPLICATION OF WORLDWIDE INTEREST ALLOCATION.

    (a) In General.--Paragraphs (5)(D) and (6) of section 864(f) of the 
Internal Revenue Code of 1986 are each amended by striking ``December 
31, 2008'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
                                                 Union Calendar No. 262

110th CONGRESS

  1st Session

                               H. R. 3920

                      [Report No. 110-414, Part I]

_______________________________________________________________________

                                 A BILL

    To amend the Trade Act of 1974 to reauthorize trade adjustment 
 assistance, to extend trade adjustment assistance to service workers 
                   and firms, and for other purposes.

_______________________________________________________________________

                            October 29, 2007

    Reported from the Committee on Ways and Means with an amendment

                            October 29, 2007

 Committees on Education and Labor and Energy and Commerce discharged; 
committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed