[Congressional Record Volume 153, Number 167 (Wednesday, October 31, 2007)]
[House]
[Pages H12253-H12337]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TRADE AND GLOBALIZATION ASSISTANCE ACT OF 2007
Mr. RANGEL. Mr. Speaker, pursuant to H. Res. 781, I call up the bill
(H.R. 3920) 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, and ask for its immediate
consideration in the House.
The Clerk read the title of the bill.
The text of the bill is as follows:se 12256
H.R. 3920
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 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.
TITLE III--UNEMPLOYMENT INSURANCE
Sec. 301. Short title.
[[Page H12254]]
Sec. 302. Special transfers to State accounts in the Unemployment Trust
Fund.
Sec. 303. Extension of FUTA tax.
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
[[Page H12255]]
(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 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;
``(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).
``(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 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.
[[Page H12256]]
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
[[Page H12257]]
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 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).''.
[[Page H12258]]
(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
[[Page H12259]]
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).
[[Page H12260]]
``(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''.
[[Page H12261]]
(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 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 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.
[[Page H12262]]
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; and
``(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.
``(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''.
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
[[Page H12263]]
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
``2012'', and
(2) by striking ``2008'' in paragraph (2) and inserting
``2013''.
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
[[Page H12264]]
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.
[[Page H12265]]
``(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.
``(i) Credits May Be Stripped.--Under regulations
prescribed by the Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit
under this section shall be allowed to the person who on the
credit allowance date holds the instrument evidencing the
entitlement to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a
stripped bond and to the credit under this section as if it
were a stripped coupon.''.
(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
[[Page H12266]]
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.
The SPEAKER pro tempore (Mr. Serrano). Pursuant to House Resolution
781, the amendment in the nature of a substitute printed in the bill,
modified by the amendment printed in part A of House Report 110-417, is
adopted and the bill, as amended, is considered read.
The text of the bill, as amended, is as follows:
H.R. 3920
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.
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.
Sec. 142. Extension of COBRA benefits for certain TAA-eligible
individuals and PBGC recipients.
Subtitle E--Wage Insurance
Sec. 151. Reemployment trade adjustment assistance program for older
workers.
Subtitle F--Other Matters
Sec. 161. Restriction on eligibility for program benefits.
Sec. 162. Agreements with States.
Sec. 163. Fraud and recovery of overpayments.
Sec. 164. Technical amendments.
Sec. 165. Office of Trade Adjustment Assistance; Deputy Assistant
Secretary for Trade Adjustment Assistance.
Sec. 166. Collection of data and reports; information to workers.
Sec. 167. Extension of TAA program.
Sec. 168. Judicial review.
Sec. 169. 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--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
Sec. 301. Eligibility of certain other producers.
TITLE IV--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 V--MANUFACTURING REDEVELOPMENT ZONES
Sec. 401. Manufacturing redevelopment zones.
Sec. 402. Delay in application of worldwide interest allocation.
TITLE VI--WORKER ADJUSTMENT AND RETRAINING NOTIFICATION
Sec. 601. Short title.
Sec. 602. Amendments to the WARN Act.
Sec. 603. Effective date.
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
public agency, or subdivision of a firm or public agency,'';
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 of a public agency
or subdivision thereof)''; 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)'';
[[Page H12267]]
(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 produced, or services 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)--
(A) by striking ``subdivision of the firm'' and all that
follows through ``he shall'' and inserting ``subdivision of
the firm, or of a public agency or subdivision of a public
agency, that total or partial separations from such firm (or
subdivision) or public agency (or subdivision) are no longer
attributable to the conditions specified in section 222, the
Secretary shall''; and
(B) 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.--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
[[Page H12268]]
third certification of workers in a domestic industry
described in subsection (a), as the case may be--
``(1) 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
``(2) 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) of 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
services under section 235 and training under section 236,
without regard to whether the worker has been totally or
partially separated from employment. In the case of a worker
not totally or partially separated from employment, the
reference in section 236(a)(1)(A) to `suitable employment'
shall be deemed not to refer to such 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. In the case of a
worker described in paragraph (1)(B)(iii), no services
described in section 235 or training described in section 236
may be initiated after such termination date.
``(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.''.
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
[[Page H12269]]
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 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), and the periods specified in
section 231(a)(5)(A), if the Secretary determines that there
is justifiable cause for such an extension, such as the
failure to provide the worker with timely information, 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
[[Page H12270]]
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 102 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 in order to receive
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 of the application to any such week in
training of the provisions of State law or Federal
unemployment insurance law relating to availability for work,
active search for work, or refusal to accept work.''.
(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
[[Page H12271]]
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
[[Page H12272]]
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.
SEC. 142. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-
ELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS.
(a) ERISA Amendments.--Section 602(2)(A) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A))
is amended--
(1) by moving clause (v) to after clause (iv) and before
the flush left sentence beginning with ``In the case of a
qualified beneficiary'';
(2) by striking ``In the case of a qualified beneficiary''
and inserting the following:
``(vi) Special rule for disability.--In the case of a
qualified beneficiary''; and
(3) by redesignating clauses (v) and (vi), as amended by
paragraphs (1) and (2), as clauses (viii) and (ix) and by
inserting after clause (iv) the following new clauses:
``(v) Special rule for pbgc recipients.--In the case of a
qualifying event described in section 603(2) with respect to
a covered employee who (as of such qualifying event) has a
nonforeitable right to a benefit any portion of which is to
be paid by the Pension Benefit Guaranty Corporation under
title IV, notwithstanding clause (i) or (ii), the date of the
death of the covered employee, or in the case of the
surviving spouse or dependent children of the covered
employee, 36 months after the date of the death of the
covered employee.
``(vi) Special rule for taa-eligible individuals.--In the
case of a qualifying event described in section 603(2) with
respect to a covered employee who is (as of the date that the
period of coverage would, but for this clause or clause
(vii), otherwise terminate under clause (i) or (ii)) a TAA-
eligible individual (as defined in section 605(b)(4)(B)), the
period of coverage shall not terminate by reason of clause
(i) or (ii), as the case may be, before the later of the date
specified in such clause or the date on which such individual
ceases to be such a TAA-eligible individual.
[[Page H12273]]
``(vii) Special rule for certain taa-eligible
individuals.--In the case of a qualifying event described in
section 603(2) with respect to a covered employee who is (as
of the date that the period of coverage would, but for this
clause or clause (vi), otherwise terminate under clause (i)
or (ii)) a TAA-eligible individual (as defined in section
605(b)(4)(B)) and who (as of such qualifying event) has
attainted age 55 or has completed 10 or more years of service
with the employer, clauses (i) and (ii) shall not apply.''.
(b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B)
of the Internal Revenue Code of 1986 is amended--
(1) by striking ``In the case of a qualified beneficiary''
and inserting the following:
``(VI) Special rule for disability.--In the case of a
qualified beneficiary'', and
(2) by redesignating subclauses (V) and (VI), as amended by
paragraph (1), as subclauses (VIII) and (IX) and by inserting
after clause (IV) the following new subclauses:
``(V) Special rule for pbgc recipients.--In the case of a
qualifying event described in paragraph (3)(B) with respect
to a covered employee who (as of such qualifying event) has a
nonforeitable right to a benefit any portion of which is to
be paid by the Pension Benefit Guaranty Corporation under
title IV of the Employee Retirement Income Security Act of
1974, notwithstanding subclause (I) or (II), the date of the
death of the covered employee, or in the case of the
surviving spouse or dependent children of the covered
employee, 36 months after the date of the death of the
covered employee.
``(VI) Special rule for taa-eligible individuals.--In the
case of a qualifying event described in paragraph (3)(B) with
respect to a covered employee who is (as of the date that the
period of coverage would, but for this subclause or subclause
(VII), otherwise terminate under subclause (I) or (II)) a
TAA-eligible individual (as defined in paragraph
(5)(C)(iv)(II)), the period of coverage shall not terminate
by reason of subclause (I) or (II), as the case may be,
before the later of the date specified in such subclause or
the date on which such individual ceases to be such a TAA-
eligible individual.
``(VII) Special rule for certain taa-eligible
individuals.--In the case of a qualifying event described in
paragraph (3)(B) with respect to a covered employee who is
(as of the date that the period of coverage would, but for
this subclause or subclause (VI), otherwise terminate under
subclause (I) or (II)) a TAA-eligible individual (as defined
in paragraph (5)(C)(iv)(II)) and who (as of such qualifying
event) has attainted age 55 or has completed 10 or more years
of service with the employer, subclauses (I) and (II) shall
not apply.''.
(c) PHSA Amendments.--Section 2202(2)(A) of the Public
Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
(1) by striking ``In the case of a qualified beneficiary''
and inserting the following:
``(v) Special rule for disability.--In the case of a
qualified beneficiary''; and
(2) by redesignating clauses (iv) and (v), as amended by
paragraph (1), as clauses (vi) and (vii) and by inserting
after clause (iii) the following new clauses:
``(iv) Special rule for taa-eligible individuals.--In the
case of a qualifying event described in section 2203(2) with
respect to a covered employee who is (as of the date that the
period of coverage would, but for this clause or clause (v),
otherwise terminate under clause (i) or (ii)) a TAA-eligible
individual (as defined in section 2205(b)(4)(B)), the period
of coverage shall not terminate by reason of clause (i) or
(ii), as the case may be, before the later of the date
specified in such clause or the date on which such individual
ceases to be such a TAA-eligible individual.
``(v) Special rule for certain taa-eligible individuals.--
In the case of a qualifying event described in section
2203(2) with respect to a covered employee who is (as of the
date that the period of coverage would, but for this clause
or clause (iv), otherwise terminate under clause (i) or (ii))
a TAA-eligible individual (as defined in section
2205(b)(4)(B)) and who (as of such qualifying event) has
attainted age 55 or has completed 10 or more years of service
with the employer, clauses (i) and (ii) shall not apply.''.
(d) Effective Date.--The amendments made by this section
shall apply to periods of coverage which would (without
regard to the amendments made by this section) end on or
after January 1, 2008.
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) is not employed at the firm 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 and other services.--A worker described in
subparagraph (B) shall be eligible to receive training
approved under section 236 and services under section 235.
``(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. 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.''.
SEC. 162. 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. 163. 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. 164. 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.
[[Page H12274]]
(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. 165. 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. 166. 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) Collection of Data From States.--The Secretary is
authorized to collect such data from the States as is
necessary to carry out this section.
``(d) 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).
``(e) 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. 167. 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. 168. 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. 169. 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
[[Page H12275]]
``(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--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
SEC. 301. ELIGIBILITY OF CERTAIN OTHER PRODUCERS.
Section 292 of the Trade Act of 1974 (19 U.S.C. 2401a) is
amended--
(1) in subsection (a), by inserting ``and on the Website of
the Department of Agriculture'' after ``Federal Register'';
and
(2) by adding at the end the following:
``(f) Eligibility of Certain Other Producers.--An
agricultural commodity producer or group of producers that
resides outside of the State or region identified in a
petition filed under subsection (a) may file a request to
become a party to that petition not later than 30 days after
the date notice is published in the Federal Register and on
the Website of the Department of Agriculture with respect to
that petition.''.
TITLE IV--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
[[Page H12276]]
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.
[[Page H12277]]
(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 V--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
[[Page H12278]]
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.
[[Page H12279]]
``(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.
TITLE VI--WORKER ADJUSTMENT AND RETRAINING NOTIFICATION
SEC. 601. SHORT TITLE.
This title may be cited as the ``Early Warning and Health
Care for Workers Affected by Globalization Act''.
SEC. 602. AMENDMENTS TO THE WARN ACT.
(a) Definitions.--
(1) Employer, plant closing, and mass layoff.--Paragraphs
(1) through (3) of section 2(a) of the Worker Adjustment and
Retraining Notification Act (29 U.S.C. 2101(a)(1)-(3)) are
amended to read as follows:
``(1) the term `employer' means any business enterprise
that employs 100 or more employees;
``(2) the term `plant closing' means the permanent or
temporary shutdown of a single site of employment, or of one
or more facilities or operating units within a single site of
employment, which results in an employment loss at such site,
during any 30-day period, for 50 or more employees;
``(3) the term `mass layoff' means a reduction in force at
a single site of employment which results in an employment
loss at such site, during any 30-day period, for 50 or more
employees.''.
(2) Secretary of labor.--
(A) Definition.--Paragraph (8) of such section is amended
to read as follows:
``(8) the term `Secretary' means the Secretary of Labor or
a representative of the Secretary of Labor.''.
(B) Regulations.--Section 8(a) of such Act (29 U.S.C.
2107(a)) is amended by striking ``of Labor''.
(3) Conforming amendments.--
(A) Notice.--Section 3(d) of such Act (29 U.S.C. 2102(d))
is amended by striking out ``, each of which is less than the
minimum number of employees specified in section 2(a)(2) or
(3) but which in the aggregate exceed that minimum number,''
and inserting ``which in the aggregate exceed the minimum
number of employees specified in section 2(a)(2) or (3)''.
(B) Definitions.--Section 2(b)(1) of such Act (29 U.S.C.
2101(b)(1)) is amended by striking ``(other than a part-time
employee)''.
(b) Notice.--
(1) Notice period.--
(A) In general.--Section 3 of the Worker Adjustment and
Retraining Notification Act (29 U.S.C. 2102) is amended by
striking ``60-day period'' and inserting ``90-day period''
each place it appears.
(B) Conforming amendment.--Section 5(a)(1) of such Act (29
U.S.C. 2104(a)(1)) is amended in the matter following
subparagraph (B), by striking ``60 days'' and inserting ``90
days''.
(2) Recipients.--Section 3(a) of such Act (29 U.S.C.
2102(a)) is amended--
(A) in paragraph (1), by striking ``or, if there is no such
representative at that time, to each affected employee; and''
and inserting ``and to each affected employee;''; and
(B) by redesignating paragraph (2) as paragraph (3) and
inserting after paragraph (1) the following:
``(2) to the Secretary; and''.
(3) Information regarding benefits and services available
to workers and dol notice to congress.--Section 3 of such Act
(29 U.S.C. 2102) is further amended by adding at the end the
following:
``(e) Information Regarding Benefits and Services Available
to Employees.--Concurrent with or immediately after providing
the notice required under subsection (a)(1), an employer
shall provide affected employees with information regarding
the benefits and services available to such employees, as
described in the guide compiled by the Secretary under
section 12.
``(f) DOL Notice to Congress.--As soon as practicable and
not later than 15 days after receiving notification under
subsection (a)(2), the Secretary of Labor shall notify the
appropriate Senators and Members of the House of
Representatives who represent the area or areas where the
plant closing or mass layoff is to occur.''.
(c) Enforcement.--
(1) Amount.--Section 5(a)(1) of the Worker Adjustment and
Retraining Notification Act (29 U.S.C. 2104(a)(1)) is
amended--
(A) in subparagraph (A)--
(i) by striking ``back pay for each day of violation'' and
inserting ``two days' pay multiplied by the number of
calendar days short of 90 that the employer provided notice
before such closing or layoff''
(ii) in clause (ii), by striking ``and'' at the end
thereof;
(B) by redesignating subparagraph (B) as subparagraph (C);
(C) by inserting after subparagraph (A) the following:
``(B) interest on the amount described in subparagraph (A)
calculated at the prevailing rate; and''; and
(D) by striking the matter following subparagraph (C) (as
so redesignated).
(2) Exemption.--Section 5(a)(4) of such Act (29 U.S.C.
2104(a)(4)) is amended by striking ``reduce the amount of the
liability or penalty provided for in this section'' and
inserting ``reduce the amount of the liability under
subparagraph (C) of paragraph (1) and reduce the amount of
the penalty provided for in paragraph (3)''.
(3) Administrative complaint.--Section 5(a)(5) of such Act
(29 U.S.C. 2104(a)(5)) is amended--
(A) by striking ``may sue'' and inserting ``may,'';
(B) by inserting after ``both,'' the following: ``(A) file
a complaint with the Secretary alleging a violation of
section 3, or (B) bring suit''; and
(C) by adding at the end thereof the following new
sentence: ``A person seeking to enforce such liability may
use one or both of the enforcement mechanisms described in
subparagraphs (A) and (B).''.
(4) Action by the secretary.--Section 5 of such Act (29
U.S.C. 2104) is amended--
(A) by redesignating subsection (b) as subsection (d); and
(B) by inserting after subsection (a) the following new
subsections:
``(b) Action by the Secretary.--
``(1) Administrative action.--The Secretary shall receive,
investigate, and attempt to resolve complaints of violations
of section 3 by an employer in the same manner that the
Secretary receives, investigates, and attempts to resolve
complaints of violations of sections 6 and 7 of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206 and 207).
``(2) Subpoena powers.--For the purposes of any
investigation provided for in this section, the Secretary
shall have the subpoena authority provided for under section
9 of the Fair Labor Standards Act of 1938 (29 U.S.C. 209).
``(3) Sums recovered.--Any sums recovered by the Secretary
on behalf of an employee under subparagraphs (A), (B), and
(D) of section
[[Page H12280]]
5(a)(1) shall be held in a special deposit account and shall
be paid, on order of the Secretary, directly to each employee
affected. Any such sums not paid to an employee because of
inability to do so within a period of 3 years, and any sums
recovered by the Secretary under subparagraph (C) of section
5(a)(1), shall be credited as an offsetting collection to the
appropriations account of the Secretary of Labor for expenses
for the administration of this Act and shall remain available
to the Secretary until expended.
``(c) Limitations.--
``(1) Limitations period.--An action may be brought under
this section not later than 2 years after the date of the
last event constituting the alleged violation for which the
action is brought.
``(2) Commencement.--In determining when an action is
commenced under this section for the purposes of paragraph
(1), it shall be considered to be commenced on the date on
which the complaint is filed.''.
(d) Posting of Notices; Penalties.--Section 11 of the
Worker Adjustment and Retraining Notification Act (29 U.S.C.
2101 note) is amended to read as follows:
``SEC. 11. POSTING OF NOTICES; PENALTIES.
``(a) Posting of Notices.--Each employer shall post and
keep posted in conspicuous places upon its premises where
notices to employees are customarily posted a notice to be
prepared or approved by the Secretary setting forth excerpts
from, or summaries of, the pertinent provisions of this
chapter and information pertinent to the filing of a
complaint.
``(b) Penalties.--A willful violation of this section shall
be punishable by a fine of not more than $500 for each
separate offense.''.
(e) Non-Waiver of Rights and Remedies; Information
Regarding Benefits and Services Available to Employees.--Such
Act is further amended by adding at the end the following:
``SEC. 12. RIGHTS AND REMEDIES NOT SUBJECT TO WAIVER.
``(a) In General.--The rights and remedies provided under
this Act (including the right to maintain a civil action) may
not be waived, deferred, or lost pursuant to any agreement or
settlement other than an agreement or settlement described in
subsection (b).
``(b) Agreement or Settlement.--An agreement or settlement
referred to in subsection (a) is an agreement or settlement
negotiated by the Secretary, an attorney general of any
State, or a private attorney on behalf of affected employees.
``SEC. 13. INFORMATION REGARDING BENEFITS AND SERVICES
AVAILABLE TO WORKERS.
``The Secretary of Labor shall maintain a guide of benefits
and services which may be available to affected employees,
including unemployment compensation, trade adjustment
assistance, COBRA benefits, and early access to training and
other services, including counseling services, available
under the Workforce Investment Act of 1998. Such guide shall
be available on the Internet website of the Department of
Labor and shall include a description of the benefits and
services, the eligibility requirements, and the means of
obtaining such benefits and services. Upon receiving notice
from an employer under section 3(a)(2), the Secretary shall
immediately transmit such guide to such employer.''.
(f) Notice Excused Where Caused by Terrorist Attack.--
Section 3(b)(2) of the Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2102(b)(2)) is amended by adding
at the end the following new subparagraph:
``(C) No notice under this Act shall be required if the
plant closing or mass layoff is due directly or indirectly to
a terrorist attack on the United States.''.
SEC. 603. EFFECTIVE DATE.
Except as otherwise provided in this Act, the provisions of
this Act, and the amendments made by this Act, shall take
effect on the date of the enactment of this Act.
The SPEAKER pro tempore. Debate shall not exceed 1 hour, with 40
minutes equally divided and controlled by the chairman and ranking
minority member of the Committee on Ways and Means, and 20 minutes
equally divided and controlled by the chairman and ranking minority
member of the Committee on Education and Labor.
After 1 hour of debate on the bill, as amended, it shall be in order
to consider the amendment in the nature of a substitute printed in part
B of the report, if offered by the gentleman from Louisiana (Mr.
McCrery) or his designee, which shall be in order without intervention
of any point of order, shall be considered read, and shall be debatable
for 1 hour, equally divided and controlled by the proponent and an
opponent.
The gentleman from New York (Mr. Rangel) and the gentleman from
Louisiana (Mr. McCrery) each will control 20 minutes, and the gentleman
from California (Mr. George Miller) and the gentleman from California
(Mr. McKeon) each will control 10 minutes.
The Chair recognizes the gentleman from New York.
{time} 1215
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Before I ask unanimous consent to yield the balance of my time to our
distinguished subcommittee chairman for Trade, Mr. Levin, I first want
to thank Mr. McCrery for helping to set the stage for at least the Ways
and Means Committee to vote unanimously for the free trade agreement
with Peru. This was a record vote, this was a historic vote, and we had
every vote on the committee.
I raise that at this time not to curry favor with the Republicans to
support this historic piece of legislation before us, but because I
know from Mr. McCrery's input and contribution, he recognizes that
trade no longer has to be seen as something that is negative to
American workers.
Good trade agreements that create jobs should be allowed a vote and
not be hurried so that Members are not impeded from the policy and
really have an opportunity to study the substance. Without his
cooperation and that of the United States Trade Representative and
Secretary Treasurer, we would not even have the opportunity to look
forward to the bipartisan victory we had in the committee and look
forward to on the floor.
A part of that agreement, however, was he and I sharing that when
people are without work, without jobs, without hope, when communities
are adversely affected because of trade, that our government and our
multinationals have a responsibility not just to their shareholders,
but to do all that they can to ease the pain, to encourage investment,
and to have a climate, whether it is globalization or technology, to
know that trade is not always the villain.
And to the extent we are able to improve on many of the things that
we have in this bill before us, we do hope that the Trade and
Globalization Assistance Act will be just the beginning. That whether
it is trade or not, we have a responsibility to the dignity of American
workers and their children so that in this great country they can
aspire to be working and to have the respect that all Americans would
want in terms of being producers.
So to the extent that we had the cooperation of Mr. McCrery in
creating the climate, and fully appreciating that we had input from
Republicans on the Ways and Means Committee, even though we didn't ask
for their votes and accept their amendments, it is this climate that
makes our country so great, that makes this Congress so great, and
makes me proud to be the Chair and a member of the Ways and Means
Committee.
I rise today in strong support of H.R. 3920, the Trade and
Globalization Assistance Act of 2007.
We come here today at a crossroads of sorts.
In recent years, trade policy has been a dividing force, used as a
political tool to advance ideologies, rather than a shared sense of
purpose that our trade agreements and programs could reflect the
broader goals of the American worker.
The legislation before us today offers an opportunity to change that.
In the early months of this Congress, I joined with the Speaker and
the House leadership to remind the Administration that the Constitution
specifically designates Congress as the branch of government
responsible for international commerce.
We agreed that we took that responsibility seriously and we would use
our majority to improve American trade policy to better reflect the
needs and concerns of our workers, not just our large, multi-national
corporations.
The legislation before us today is the next step in developing a new
trade policy that more adequately addresses the growing perception that
trade is not working for American workers.
The Trade and Globalization Assistance Act of 2007 would expand
training and benefits for workers while also helping to encourage
investment in communities that have lost jobs to increased trade--
particularly in our manufacturing sector.
The growing perception that prior American trade policy ignored the
needs of workers here and abroad is a large contributing factor to the
declining public support for trade.
For years we have had a program in place--trade adjustment
assistance, or TAA--that was supposed to tackle some of the issues and
problems workers face as it relates to trade.
Despite the best of intentions, this program did not meet
expectations or promises and has failed to keep pace with
globalization.
We are here to change that today with the Trade and Globalization
Assistance Act of 2007.
The bill before us today is a comprehensive policy expanding
opportunities for American
[[Page H12281]]
workers, industries, and communities to prepare for and overcome the
challenges created by expanded trade.
First, the bill significantly expands existing TAA for Workers by: 1)
covering service workers and additional manufacturing workers; 2)
increasing TAA benefits; 3) making the TAA wage insurance program
permanent; 4) improving the TAA health care benefit; and 5) increasing
TAA program funding.
Second, the bill includes a package of tax incentives to encourage
investment in distressed communities that have lost manufacturing jobs.
Third, recognizing that unemployment insurance (UI) is the gateway to
TAA, the bill reforms the unemployment insurance system by creating
incentives for States to cover part-time, low-wage, and other workers
under State UI laws.
America's ability to compete and win in a global economy is too
critical for our trade policy to continue being a partisan issue.
I noticed with great displeasure yesterday's veto threat from the
Administration on this bill. To that statement, I would say that the
bill before us today passed the Ways and Means Committee with
Democratic and Republican support--and I expect it will receive the
same from the full House.
The issues contained in this bill are central to the ongoing debate
over the Administration's trade policy and if this Administration
wishes to address the growing public concern over the direction of its
trade policy, it will reconsider this veto threat.
Globalization is here to stay--and we must band together as Democrats
and Republicans to shape its benefits for all Americans.
I look forward to today's discussion and I urge you to support H.R.
3920, the Trade and Globalization Assistance Act of 2007.
At this time I would like unanimous consent to yield the balance of
my time to the gentleman from Michigan (Mr. Levin), the chairman of the
Subcommittee on Trade, who has played such an important role in
creating that climate and working with the staff and the members on the
other side.
The SPEAKER pro tempore. Without objection, the gentleman from
Michigan is recognized for the balance of the time.
There was no objection.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I return the compliment to the chairman of the Ways and
Means Committee for helping to create an atmosphere on our committee
which has allowed us to make great progress in the area of trade, as
evidenced by today's 39-0 vote in favor of advancing the Peru Free
Trade Agreement.
The chairman and I have talked many times this year about the need to
have a more viable assistance program or network of programs at the
Federal level as well as in the private sector to assist workers in our
country who lose their jobs through no fault of their own, who lose
their jobs because of trade or because of globalization more generally.
The chairman has been very good at listening to our suggestions from
the minority and considering those.
Unfortunately, for whatever reason, the bill that is before the House
today does not reflect any of our suggestions or proposals that we have
shared with the majority; and that's unfortunate, although I have been
assured by the chairman that as this bill works its way through the
rest of the process, our ideas may yet receive consideration and
perhaps inclusion. So I remain hopeful of that.
But the bill that is before us today does not contain those and it
contains, I think, a number of weaknesses which compel me to not
support the bill that is before the House today but instead to support
a substitute which I will offer later in the debate.
In talking about the majority bill that's on the floor today as a
threshold matter, and the chairman knows this because I have talked
with him about it, I think we should be considering trade adjustment
assistance, unemployment insurance, modification of those programs in
the context of trade opportunities generally for United States workers,
farmers and businesses. That is to say, I think we should be
considering modifications to our assistance network in the context of
the pending free trade agreements that are before the Congress and the
expired trade promotion authority. Unfortunately, we are not doing
that. We are considering TAA in isolation.
The alternative that I offer today would reauthorize trade adjustment
assistance for 5 years. To help workers gain the skills needed to adapt
to the changing global economy, our bill would restructure TAA from a
predominantly income support program that offers training into a job
retraining program that improves access to more flexible training and
continues to provide income support, health care, and other benefits.
The contrasts between the substitute I will offer and H.R. 3920, the
bill on the floor, are quite stark. For example, H.R. 3920 would
pointlessly keep people in trade adjustment assistance longer. Our
substitute would provide more flexible training options to get people
back to work sooner, including by training before layoff and training
part-time and giving people training scholarships to use over 4 years.
H.R. 3920 would increase TAA spending by billions of dollars, but
would not require any further accountability on how program funds are
spent. Our bill introduces some elements of accountability in that
spending.
H.R. 3920 would greatly expand TAA and, I think, exacerbate the
inefficiencies in the program today. Our bill would better integrate
TAA and other Federal programs to make more services available to all
workers.
H.R. 3920 would extend benefits to public sector workers and submit
State and local officials to subpoenas and legal proceedings to comply.
Our bill would maintain the focus of the program on private sector
workers.
H.R. 3920 would greatly expand the health coverage tax credit, but
then terminate that credit in 2 years. I don't know exactly why the
majority chose to terminate this health care tax credit in 2 years.
They have, in way of explanation, said that they think the current way
the tax credit is structured may not be the best way to do it so they
may use these 2 years to come up with another plan. That may be; but
the fact is that the bill terminates the health care tax credit in 2
years. They also increase the credit from 65 percent to 85 percent
which I believe is not warranted. Our substitute would increase the
credit from 65 percent to 70 percent, and would continue that credit
for the entire 5-year life of the bill.
There are other differences. One that we think is notable is the new
markets tax credit that we would expand. We think that is a more
efficient way to address communities that have been directly impacted
by trade. The tax credit bonds in the majority bill we think are
untested. They could be subject to abuse and uses that are not really
related to impacts of trade.
I also want to express my clear opposition to how the majority pays
for the $10 billion cost of their bill. First, they would delay
interest allocation rules that this Congress enacted in 2004. We did
that to address an unfairness for American companies that do business
overseas. The effect of delaying the application of that change that we
made would be to make United States companies less competitive.
Second, they would unnecessarily, in our view, increase Federal
unemployment payroll taxes by extending the 0.2 percent FUTA surtax
that is due to expire at the end of this year for another 3 years.
I regret that this bill does not reflect what I hoped to be our
bipartisan approach to trade adjustment assistance or to our trade
agenda beyond the Peru FTA, and I reluctantly will oppose it and
support the substitute.
Mr. Speaker, I reserve the balance of my time.
The SPEAKER pro tempore. The Chair would now recognize the 20 minutes
allotted to the gentleman from California (Mr. George Miller) and to
the gentleman from California (Mr. McKeon).
The Chair recognizes the gentleman from California (Mr. George
Miller).
Mr. GEORGE MILLER of California. Thank you, Mr. Speaker. I yield
myself 3 minutes.
Mr. Speaker, the typical income of American households has actually
declined between 2002 and 2006 in inflation-adjusted terms. Last year,
the number of Americans without health insurance actually increased by
over 2 million.
For years now, Americans have had to deal with stagnating incomes and
rising costs for basics like health care, food, energy and housing. For
many reasons, Americans are deeply concerned about the future of their
economy and their place in it. One cause of
[[Page H12282]]
their concern is the negative consequences they see from international
trade.
Indeed, Americans find themselves increasingly caught in the
crosshairs of the global economy. They have watched neighbors, friends
and loved ones lose their jobs when plants close and move overseas.
Americans have become even more skeptical about trade agreements, and
for good reason. They have watched jobs move to China, and in return
they get lead-poisoned toys.
Given these very real concerns, it is critical that we include in
trade agreements strong and enforceable labor and environmental
protections. And we must provide substantial assistance to workers who
are negatively affected by this trade.
On the first part, I want to thank the committee for what they have
done in terms of the trade agreements with these labor and
environmental protections and I want to thank them for this legislation
today.
This legislation we are considering addresses this very important
point of what happens to those workers who have the negative
consequences of international trade. This legislation helps ensure that
displaced workers can help make ends meet while they find a new job, or
in the case of older workers, until they reach retirement age.
The bill requires a layoff or plant closing notification if 50 or
more employees, including part-time employees, at a single job site are
laid off in a 30-day period. It eliminates a loophole that has allowed
employers to avoid giving notices by shifting employees around job
sites.
The bill increases notice to employees of a plant closing or mass
layoff from 60 to 90 days, and that is very important.
And it also says that TAA-eligible employees can extend their COBRA
coverage for as long as they remain TAA-eligible, up to 2\1/2\ years.
And TAA-eligible employees who are 55 years or older and who have
worked for an employer for more than 10 years can extend their COBRA
coverage until they are eligible for Medicare at age 65, or covered by
another health care plan. The coverage is available to workers today,
but only up to 18 months. The bill extends that provision.
This is the most important provision for those workers who lose their
income and lose their job, trying to hold their families together, and
also see the loss of their health care. COBRA is of no cost to the
government. The employee must pay the employer share, the employee
share, and the 2 percent administrative cost. Over 40 million Americans
have used COBRA coverage. But in any given year, only 2 to 3 million
Americans are on the program, and close to 200,000 people are losing
that coverage every month. This is an important benefit to these
workers and certainly to people who have preexisting conditions and
know they will not be able to go in and find insurance that they can
afford or that is even available to them.
It is important that we make certain that these older workers are
able to bridge the time until they reach Medicare eligibility so they
will have continuity of health care.
This is good legislation. I hope my colleagues on the floor will
support this legislation.
{time} 1230
Mr. McKEON. Mr. Speaker, I yield myself such time as I may consume in
opposition to this bill.
The legislation before us is supposed to be about reforming the Trade
Adjustment Assistance program. As flawed as the underlying TAA
provisions are, their weaknesses are amplified by the inclusion of
separate, largely unrelated legislation that moved through the
Education and Labor Committee.
That bill, which has been folded into the larger TAA package,
modifies the WARN Act and COBRA, two statutes that were not even
designed to help workers impacted by globalization get the tools and
training they needed to get back to work.
We've heard time and again that in order to effectively respond to
competitive challenges we need to bolster our education and training
systems to better prepare current and future workers for success.
Unfortunately, the provisions inserted into the broader TAA bill take
a different approach. Instead of offering proactive solutions that will
allow American workers to compete and thrive, these policies do nothing
more than layer on additional Federal red tape for employers while
offering only incremental provisions for workers that would do nothing
to help them adjust to the changing workplace.
The proposal for a massive expansion of the WARN Act would be
incredibly burdensome for employers struggling to keep pace with a
changing economy. The limitations of this proposal do not match the
real-world scenarios in which employers may be shifting their workforce
to meet changing needs.
The bill mandates a full 90 days' notice before a plant closure or
other mass layoff, requiring employers to remain stagnant for a full
fiscal quarter before adjusting their workforce. This, despite the fact
that in order to keep and create jobs here at home, employers need a
workforce that is flexible and adaptable. Layered on top of that
unworkable time frame is a requirement that double damages be paid by
any employer unable to comply. This would create a system that is more
focused on punishing employers than truly helping workers who lose
their jobs.
Similarly, the selective expansion of COBRA availability seems to
focus more on compliance and red tape than on offering genuine
solutions to workers who need assistance and retraining as a result of
globalization. It creates an unfair system in which not all workers who
lose their jobs would have access to the same health care options. The
bill uses TAA eligibility as a trigger for expanded COBRA coverage but
extends the coverage almost indefinitely. This is inconsistent with
existing COBRA eligibility and inconsistent with other TAA benefits.
The Education and Labor Committee convened a hearing in March to
examine the impact of international trade on American workers. The
challenges we considered during that hearing are the same challenges we
appear to be attempting to address today. Yet during that hearing, not
a single witness suggested or endorsed these bloated, bureaucratic WARN
Act and COBRA proposals.
We all know that American companies must be flexible and dynamic in
order to keep pace with their competition overseas. These proposals
would put American companies at a distinct disadvantage, preventing
them from maintaining an agile workforce and undermining efforts to
preserve American jobs or create new ones because of the burden and
cost of compliance with these new mandates.
If we're serious about assisting dislocated workers and keeping
America competitive, the Education and Labor Committee has a crucial
role to play. We should be renewing our one-stop job training system
authorized under the Workforce Investment Act. Unfortunately, Democrats
have stalled our efforts to strengthen and improve job training,
failing to even introduce a bill to extend and enhance WIA.
Republicans are committed to keeping America competitive in the
global economy. Later today, I will join with Representative McCrery,
the senior Republican on the Ways and Means Committee, to offer a
comprehensive approach to assist Americans adversely affected by trade.
The increased employer burdens proposed through an expansion of the
WARN Act and COBRA are nothing more than a distraction from the real
debate we ought to be having. I oppose these costly, arduous provisions
because they move in exactly the wrong direction. Instead of fostering
competitiveness and job creation, they will breed litigation and
stagnation.
Mr. Speaker, I reserve the balance of my time.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to
the gentlewoman from California (Ms. Woolsey).
Ms. WOOLSEY. Mr. Speaker, if the President is going to negotiate
trade agreements based on the failed NAFTA model, this legislation is
the very least that we can do for our workers who lose their jobs
because of international trade and globalization.
Mr. Speaker, America faces record high trade deficits and plant
closings, and it's our laid-off workers who are the casualties.
Strengthening trade adjustment assistance, TAA, isn't the
[[Page H12283]]
magic pill. It is not the cure-all. It can only be a help by fixing the
flawed trade policy. We will do what our workers need, but we owe
displaced workers in the meantime, and we owe their communities around
the country the chance they need to regain their economic footing with
job training, with health care, and they need to know that it's
available to them and how to take advantage of these programs.
Mr. Speaker, while the bill will not prevent millions of workers from
losing their jobs, it will give them the tools they need and the tools
they deserve until they are once again able to compete in the global
workforce.
Mr. McKEON. Mr. Speaker, I yield now to the Subcommittee on Health,
Employment, Labor and Pensions ranking member, with jurisdiction over
COBRA, the gentleman from Minnesota (Mr. Kline) for such time as he may
consume.
Mr. KLINE of Minnesota. Mr. Speaker, I thank the gentleman for
yielding.
I rise in opposition to this legislation, Mr. Speaker. I have been
and continue to be a major proponent of trade, but this Trade
Adjustment Assistance program that we have today has, seems to me, gone
astray. There are a number of reasons why I would urge my colleagues to
oppose this bill, from the massive expansion of what was intended to be
a targeted Trade Adjustment Assistance program to the dramatic increase
in litigation and liability employers will face under the WARN Act
provisions contained in this bill.
The gentleman from California mentioned COBRA eligibility in his
remarks. I'd like to talk about that for just a minute.
Under the law as it stands today, when a worker loses his or her job,
he or she is generally able to elect to continue health care coverage
under COBRA for 18, or sometimes as long as 36, months. This balances
the legitimate need of the workers to obtain gap or bridge health
insurance coverage, while recognizing the administrative needs of
employers and, in particular, the need for employers who voluntarily
offer health benefits to manage costs and risk.
The bill before us dramatically expands COBRA benefits for certain
classes of workers potentially at the expense of others. Under the
Rangel substitute, a worker who loses his or her job ``because of
trade'' is afforded significantly more COBRA rights than an employee
who simply loses his or her job because, for example, his employer
closes shop. Indeed, for some of these workers, expansion of COBRA
rights can last for decades, plainly not what was intended under the
original law.
The bill also includes provisions extending COBRA benefits for PBGC
beneficiaries without any regard to the issue of trade. Individuals pay
for COBRA, but because of the nature of how this was put together, the
provisions are paid for through an increase in the taxpayer-funded
health care tax credit, at least through the period of TAA eligibility,
again, extending and complicating it in a way that was never intended
in the original law.
Just a couple of more things that come under the WARN provision of
this. This bill expands the WARN Act coverage to apply to businesses
which employ 100 or more employees, including part-time workers. It
expands the definitions of plant closures and mass layoffs. It
increases the notice requirements so that employers must provide 90
days' notice of an intended plant closure or mass layoff. It expands
damages for lost wages and benefits to include double wages, benefits
and interest for up to 90 calendar days. It includes new requirements
that employers post notice of WARN Act requirements and information on
how to file a complaint and provide notice of benefits and services
available to employees. It expands enforcement to allow the Secretary
of Labor to investigate alleged violations.
Some of these are probably very worthwhile, but clearly, a tremendous
expansion and opportunity for almost unlimited litigation, placing a
very large burden on employers, and I don't think we want to do that at
a time when we're trying to preserve jobs for our employees.
So I oppose this legislation. It reaches too far. It is too
complicated. It opens up employers to too much litigation. We can do
better than this.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield for the purpose
of a unanimous consent request to the gentlewoman from New York (Mrs.
Maloney).
(Mrs. MALONEY of New York asked and was given permission to revise
and extend her remarks.)
Mrs. MALONEY of New York. Mr. Speaker, I thank the gentleman for
yielding and I rise in support of this important legislation.
Mr. Speaker, I rise in support of H.R. 3920, the Trade Globalization
Assistance Trade Act of 2007.
This legislation would overhaul the current Trade Adjustment
Assistance, TAA, program to better meet the needs of American workers
and communities affected by globalization.
This legislation passed the Ways and Means Committee by the strong
bipartisan vote of 26-14 and I hope that we are able to provide a
similar bipartisan vote again here today.
After years of trade policies that all too often diminished the
importance of our workforce, today's legislation will rightfully
support the working men and women in our country.
Specifically, H.R. 3920 would expand Trade Adjustment Assistance
coverage to more workers, including service workers, and substantially
improve the program's training opportunities and associated health care
benefits.
The bill also creates new benefits and tax incentives for industries
and communities that have been hit hard by trade.
Finally, the legislation would promote long-needed reforms to the
unemployment insurance system, recognizing that all unemployed workers,
not just those who lose their jobs because of trade, deserve our
support in getting back on their feet.
I congratulate Chairman Rangel for bringing forth this important
legislation and I urge all of my colleagues to support this important
legislation.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to
the gentleman from New Jersey (Mr. Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his
remarks.)
Mr. ANDREWS. Mr. Speaker, I thank my friend for yielding.
So, Mr. Speaker, you're 6 months away from your 58th birthday, and
the place where you have worked for 25 years closes and you have no
health insurance. So you dip into your savings and you figure out a way
to keep yourself in the plan that you were in by paying for it largely
with your own money.
Under present law, when you hit your 59th birthday, if you don't have
another job with health insurance, you're out, and you have got 6 years
to go until you qualify for Medicare. We are changing that in this
bill.
Here's what this bill says. That person I just described, if they can
figure out a way to stretch their savings and stretch their dollars
until they're 65 years old, can enroll in Medicare and never have a gap
where their family is left unprotected, with their own money by and
large.
Now, the credits that are generously extended here, we wish we could
do more, but this is a program that makes common sense for the person
who is too young to retire and too old to start all over again. It's
the person who's working with a good job and health care and good
benefits, who's now working part-time at a retail store because that's
the best he or she can do. What is wrong with that?
This is an opportunity for the Members of this Congress to stand up
for forgotten Americans who built this country, raised their families
and paid their taxes. This should not be a Republican and Democratic
issue.
I urge everyone to vote ``yes'' on this very well-thought-out bill.
Mr. McKEON. May I inquire of the Speaker what time is left.
The SPEAKER pro tempore. The gentleman from California (Mr. McKeon)
has 2 minutes remaining, and the gentleman from California (Mr. George
Miller) has 3\1/2\ minutes remaining.
Mr. McKEON. Do you have more speakers?
Mr. GEORGE MILLER of California. Yes.
Mr. McKEON. Mr. Speaker, I reserve.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to
the gentleman from Illinois (Mr. Hare), a member of the committee.
Mr. HARE. Mr. Speaker, I rise today in strong support of H.R. 3920.
In 2004, Maytag Refrigeration Products in Galesburg, Illinois, closed
its
[[Page H12284]]
doors and bolted for Sonora, Mexico, displacing 1,600 workers, all
innocent victims of a bad trade policy. I asked my good friend Dave
Bevard, a former Maytag employee, to testify before the House Education
and Labor Committee about his participation in the TAA program. Dave's
testimony revealed a program that was difficult to navigate and plugged
with funding shortfalls.
Mr. Speaker, the bill before us today addresses these funding
problems and gives trade-impacted workers the resources and tools
necessary to successfully compete in the global economy. It provides
workers with sufficient notice of mass layoffs, improves the processes
by which workers obtain training, and strengthens access to affordable
health care.
I'm pleased to see the inclusion of two of my provisions in the bill:
one that would require the Department of Labor to inform workers about
the availability of counseling and early access to training services,
and another to help displaced workers get additional financing aid for
training. I'd like to thank Ways and Means Chairman Rangel and
Congressman Levin, and my chairman, Mr. Miller, for their leadership on
this issue and for the help their staff provided to include these
provisions that will greatly assist dislocated workers.
Mr. Speaker, the current TAA program has not kept pace with
globalization, and the bill before us aims to bring the TAA program
into the 21st century. I urge my colleagues to vote ``yes'' on this
critical legislation.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the
gentlewoman from Ohio (Ms. Kaptur).
{time} 1245
Ms. KAPTUR. I thank the gentleman, and thank the esteemed chairman,
for bringing this bill forward.
Mr. Speaker, the real answer to growing job loss in the United
States, the declining value of our dollar and to rising trade deficits
is to balance America's trade accounts by renegotiating failed deals
like NAFTA and China PNTR, by not passing any more of them, by opening
closed markets like Japan's and China's, and Korea's and by stopping
unfair trade practices globally.
Meanwhile, our workers continue to take the big hits by losing their
jobs and benefits. What this bill does is it gives them increased
notice when their plants are going to close, and it also provides a
landing pad in the form of training and trade adjustment assistance. I
just wish that the jobs they are being trained for would be produced.
We know that often is not the case.
This is the absolute least we can do for the people of our country.
They have paid the price of our failure here in Washington to produce
economic policies that make America's economy robust.
I fear, without our doing that, we are going to lose the industrial
and defense prowess that made the United States the leader post-World
War II. I just thank the committee for providing this bill which will
help the casualties reposition a bit.
The real answer to growing U.S. job loss, the declining value of the
dollar, and rising budget and trade deficits is to balance America's
trade accounts by renegotiating failed deals like NAFTA and China PNTR
and not pass more of them, by opening closed markets like Japan's,
China's, and Korea's, and stopping unfair trade practices globally.
Meanwhile, our workers continue to take the big hits--they lose their
jobs, they lose their benefits.
This bill gives them some help--by giving them increased notice
before their plants are closed, and it revamps trade assistance and
training to help them reposition if the jobs exist in the future.
We owe it to our workers and communities to give them a better chance
to adjust. They are the casualties of economic policy here in
Washington that is not working. This legislation will require employers
to provide 90 days of notice in the event of a proposed plant closing
or layoff.
Trigger the notification requirements if at least 25 workers lose
their jobs during any 30-day period, not 50 workers as in current
legislation;
Mandate notice if 100 or more workers are laid off at multiple plants
or worksites during any 30-day period;
Cover both full-time and part-time hourly and salaried workers;
Require the Department of Labor to provide model educational
information to employers on employer responsibilities and employee
rights under WARN, as well as benefits and services available to
dislocated workers;
Authorize the Department of Labor to investigate complaints and bring
enforcement suits and also to notify Members of Congress who represent
the affected areas;
Permit employees to recover back pay and benefits up to 90 days and
also liquidated damages (doubling the compensation otherwise available)
if an employer fails to give the required notice under the act; and,
Important to note is the legislation's extension of the period for
COBRA (comprehensive benefits, including health care) coverage for
recipients of trade adjustment assistance. Under current COBRA rules,
workers who lose their jobs generally may continue their health
benefits for up to 18 months at their own expense. The new legislation
would give workers who are 55 years or older and have worked for an
employer for 10 or more years the option to elect COBRA coverage until
they become Medicare eligible at 65 or until they obtain health
coverage through a subsequent employer.
While I support this bill, we must keep in mind that TAA and WARN
aren't substitutes for jobs in manufacturing America. An America that
does not produce not only loses the most vibrant wealth-producing
sector of her economy but her defense and industrial base as well.
TAA and WARN should be used sparingly and for the short term--they
are band-aids, not solutions. We need to pass legislation requiring the
executive branch to balance our trade accounts, to renegotiate NAFTA/
PNTR, and to open closed markets of the world.
It is no secret that we are voting on TAA today, to increase votes
for the Peru Free Trade Agreement next week. Our willingness to sell
out our Nation's workforce for the consolation prize of trade
adjustment assistance promises to damage our country for decades to
come.
I have two bills--H. Res. 336 and H.R. 169, the Balancing Trade Act,
which will get our country back on the right track. By supporting H.
Res. 336, we support fair, people-centered principles that promote free
trade only among free peoples. The Balancing Trade Act, which already
enjoys bipartisan support, demands that the President acknowledge a
problem in our trade policy when our deficit with any one country
exceeds $10 billion for more than 3 years. I also have a bill (H.R.
1958) to revoke PNTR from China, and I will be introducing a bill to
require the President to renegotiate NAFTA. These bills are steps
towards correcting our U.S. trade policy to prevent the kinds of
layoffs and job loss that these bills merely ice over.
[From the Toledo Blade, July 16, 2007]
Tiffin Workers Discover Limits of WARN Act
(By Steve Eder and James Drew)
Tiffin.--Four days after Christmas in 2001, Gene Goshe
braved the brisk cold as he walked to his newspaper box and
unrolled his copy of the Tiffin Advertiser-Tribune.
``National shutting down,'' blared the headline in tall
letters across the front page.
In seconds, Mr. Goshe's life changed forever.
After devoting 33 years of his life to the National
Machinery Co., Mr. Goshe read in the newspaper that morning
that the plant had abruptly closed. He didn't get a phone
call to let him know he no longer had a job.
``It was like a snowball hit you in the hind end on the
first of January,'' recalled Mr. Goshe, then 58. ``This is
the way we are going to start the year.''
The sudden demise of National Machinery stunned Tiffin, a
town of 17,000 about 55 miles southeast of Toledo already
reeling from plant closings and layoffs.
The plant, a few blocks from the small downtown, made the
machines that made nuts and bolts since the 1880s. But while
the products of its machines embodied the ordinary, the
storied history of National Machinery was far from typical.
``The National''--as locals affectionately called it--
provided a choice working environment for generations in and
around Seneca County, a flat, fertile part of northwest Ohio
dotted with fields and woodlots.
The company's reputation as an exceptional employer was
rooted in its traditions--a club for employees who had worked
there at least 25 years, summer picnics at Cedar Point, and
Christmas parties at the fancy Ritz Theatre.
National Machinery was like family, workers recalled. Not
surprisingly, it was begun by Tiffin's first families--the
Frosts and Kalnows, whose ownership dates to the 1880s, when
patriarch Meshech Frost convinced the company's original
owner to move its operations to Tiffin.
The Frosts, and later the Kalnows, are recognized as
Tiffin's leading community boosters, using some of their vast
fortune to support local causes and institutions, including
the city's Heidelberg College, where the families set up
scholarship programs to benefit the children of National
Machinery employees.
a fractured bond
The bond between the privately held company and its workers
changed forever on Dec. 28, 2001--the date National shut
down.
[[Page H12285]]
For most of the 549 National Machinery Co. employees, there
was no notice the place where many of them had dedicated
their working lives was closing.
Paul Aley, National Machinery's president, explained to
workers in a letter dated the day the plant closed that banks
cut off the company's money because of its financial
troubles. Most employees didn't receive Mr. Aley's letter
until they had already read about National's demise in the
newspaper or heard about it from friends or co-workers.
In 1988, Congress passed a law requiring business owners to
give 60-days notice before a plant closing or mass layoff. If
National Machinery Co. had followed the Worker Adjustment and
Retraining Notification Act, known as the WARN Act, its
employees could have begun looking for new work and putting
their finances in order instead of dealing with the shock of
suddenly losing their jobs.
There were concerns about the well-being of National
Machinery Co. leading up to its closure. Citing financial
problems, the company announced some layoffs earlier in 2001
and gave most of its workers the holidays off without pay.
But the veteran workers expected business would pick back up
as it had many times over the years.
This time wasn't like the others.
hoping for better times
In the weeks and months after National Machinery's
shutdown, employees looked to their faith for strength.
Twice a week, employees such as Mr. Goshe, a Vietnam
veteran and father of four, would gather outside the plant at
noon and form a prayer circle with 50 to 75 people. In the
cold January and February air, they would pray for each other
and for the future of National Machinery Co.
``Everybody would go around and if anybody had something to
say, they'd say it, or they would say a prayer,'' Mr. Goshe
said. ``If anybody had anything they wanted to get off their
chest, they could get it off their chest.''
The workers took pride in their roles in National
Machinery's history and held out hope for a return to better
times.
``National Machinery had the knowledge in town that they
were the best employer in Seneca County,'' said Mark Griffin,
a 38-year employee. ``We had some other big employers in
Seneca County, but that was the best place to work.
``They took care of their people, they had a fair wage, you
worked your overtime, had a great retirement, and they took
care of you,'' Mr. Griffin said.
From its Quarter Century Club, which honored employees of
25 years, to its picnics, baseball leagues, and community
service, National Machinery was steeped in tradition.
Its owners, the Frosts and Kalnows, who for decades
referred to their employees as ``Our people,'' instilled an
unapologetic sense of family in and outside the plant.
They provided quality employment, fair wages, and steady
jobs, and in return they expected their workers to live up to
National Machinery standards to protect the image of the
company. Employees in the 1970s and '80s were expected to be
clean-cut and trouble-free. They were forbidden from cashing
their checks at local watering holes.
Mr. Griffin said National Machinery employees had enough
pride in their work to cash their checks at a bank, not at a
bar.
In return, Mr. Griffin said, ``If you got into trouble or
were a little short, they would always bring the money up
ahead of you. They would pick you up and you could pay 'em
back later. It was like a family thing.''
a tiffin institution
National Machinery began four generations of ownership by
the Frost and then Kalnow families soon after Meshech Frost
convinced Bill Anderson to move the company to Tiffin in
1882.
In Tiffin, there is much folklore about National Machinery
and its family ownership.
One tale is that Mr. Frost went to New York City to get a
loan from financier ``Diamond'' Jim Brady to help purchase
the company.
After his death in 1922, Mr. Frost left the company to his
son, Earl Frost, who ran it into the 1950s. Earl Frost's
daughter, Jane Frost, who was the heiress to the family
fortune, married Carl Kalnow, a banker, and together they
owned National Machinery Co.
National Machinery employees still fondly recall the story
behind the Frost-Kalnow engagement.
``From what I know, Mr. Kalnow came to town and he got off
the train and asked who the richest man in town was and if he
had a daughter,'' Mr. Griffin said. ``It was Miss Frost and
he ended up marrying her.''
The Kalnows had four children--Carl, Andrew, Gertrude, and
Loretta--who inherited National Machinery after their
mother's death in 1986.
In 1998, the Kalnow siblings--who were raised in Tiffin but
had moved away--sold the company for $98 million to Citicorp
Venture Capital, a New York-based firm that buys and sells
companies as investments.
Within three years, National Machinery rapidly declined
from a thriving company to an abruptly shuttered one.
A different company
After National Machinery closed, the Kalnow siblings--who
had kept a seat on the company's board of directors and a 15
percent stake in the business as part of the sale--became the
workers' best hope for rescuing the company.
In the weeks after the company closed its doors, the
Kalnows, led by Andrew Kalnow, founder of Chicago-based Alpha
Capital Partners, a private equity investment firm, began
negotiating to buy National Machinery's debt from a
consortium of banks holding tens of millions of dollars in
notes--the debt taken on to buy the company from him and his
family.
In February, 2002, the Kalnows repurchased National
Machinery for $16 million, just a fraction of what they had
sold it for just three years earlier.
In Tiffin, many employees believed their prayers were
answered.
But they soon learned that National Machinery, under its
new ownership, would be a far different company than the one
they had devoted 20, 30, or even 40 years of their lives.
In a complex business transaction, the Kalnows established
National Machinery LLC, or limited liability company, which
they used to essentially purchase the property and assets of
the former National Machinery Co.
The sale was completed in such a way that the new company
would inherit the old company's headquarters in Tiffin, its
factory, its machinery, and its customers. But it would have
no responsibility to pay the debts of the old company. Those
debts included millions of dollars owed to suppliers and $1.5
million more owed to area doctors and health-care facilities
for medical services provided to former employees before the
plant closed.
Officials of the new company eventually agreed to pay an
undisclosed amount toward the $1.5 million in medical bills
owed by former plant workers. But the new company said it had
no legal obligation to the employees of the ``old company,''
who were left behind when the plant closed in December, 2001.
A spokesman for National Machinery LLC last week said WARN
Act issues were handled by the former plant owner and their
lawyers.
``Like many other companies today facing the challenge of
being successful in a highly competitive world market,
National Machinery LLC is leaner and less vertically
integrated,'' said John Bolte, senior vice president of
operations and human resources. ``Many processes and
therefore jobs from the past simply do not exist in our
company in order to make us more competitive.''
Attempts by The Blade to interview Andrew Kalnow and his
siblings were unsuccessful.
In an e-mail from Mr. Kalnow last month, he told The Blade:
``It seems like you have a politics agenda in mind that has
nothing to do with our business and contribution to the
community.''
A sense of betrayal
The Kalnows' ``new company''--National Machinery LLC--in
the spring of 2002 hired nearly 240 full-time employees after
it reopened the plant, many of whom worked for the ``old
company.''
But many of National Machinery Co.'s 549 employees,
including some of its longest-tenured workers, such as Joe
Poignon, never received the call to come back.
``They started it back up, but they excluded us,'' said Mr.
Poignon, a 40-year employee who worked in the company's
after-market section. ``There was people who weren't retired
out there who had more than 25 years of service and they were
not called back.''
Some grew bitter, angry, and depressed as they waited and
waited for the call from National Machinery that never came.
``It's the way they treated us,'' said Mr. Poignon, who
tries to avoid Greenfield Street in Tiffin, where National
Machinery is located. ``Not calling us in to inform us of
anything, and not being up front and square with us, and
being ostracized after they reopened the plant. None of us
deserve that. After we have given our lives to it, our good
working years are gone. We can't go out and restart. We gave
them all our good working years.''
He added, ``You feel like you've been betrayed.''
Depression and anger
Several former National Machinery employees fell into
depression as they tried to live without the work they had
been doing for most of their lives.
Others were angry.
Paul Martorana, a 27-year employee of National Machinery,
returned to the company's offices to settle his pension after
the new company had taken over. But before he left, he had a
request of Anne Martin, the company's secretary.
``Would you do me one favor?'' Mr. Martorana recalled
asking. ``Take my picture off the wall. I don't want anyone
to know I was ever associated with this company.''
Mr. Martorana wanted his picture taken off the walls of
National Machinery Co.'s Quarter Century Club. The club,
which had more than 735 members since it was established in
1936, honored the company's most loyal employees.
Many members of that devoted club were among those who were
unexpectedly thrown from their jobs, instantly losing health-
care coverage, paychecks, accrued vacation time, and the
stability of employment.
``A lot of people got hurt, financially and mentally,'' Mr.
Martorana said.
``We didn't know what to do,'' Mr. Poignon said. ``There
were people who were scheduled for surgery. They didn't know
what to do. They didn't have insurance. Some of them had
cancer.''
[[Page H12286]]
Picking up the pieces
It was difficult, if not impossible, for some former
employees to find reliable work after decades with National
Machinery. The employees had no time to plan, find new jobs,
or train for new careers.
Out of necessity, some took whatever they could find,
accepting steep pay cuts and losing benefits.
``It's basically turned our lives upside down,'' said
Sharon Goshe, who has been married to Gene Goshe for 34
years.
Mr. Goshe said he held out hope for about three months
after the plant closed, hoping that he would get a call to
return to work. The call never came.
``Once they opened back up and [I'd] seen the ones they
were hiring back, I was too old,'' Mr. Goshe said.
He began applying for nearly ``any job that was in the
paper,'' but he didn't have any success and began to suffer
from depression.
``The unemployment was running out, and we got the same old
stories,'' he said. ``You go out and you look for a job and
you get your hopes up, and you hear nothing.''
Ten months after National closed, Mr. Goshe took a job for
$10 an hour with no benefits at a local lumber yard, a $4 an
hour wage cut.
Many employees of National Machinery skipped their paid
vacations over the years, believing they had accrued months
of paid time off that could be used in the future. When the
old company shuttered, employees were not reimbursed for the
time.
The workers said they were also owed thousands of dollars
in lost wages and unpaid medical bills. But when they went to
the plant office and tried to collect from National Machinery
LLC, they heard a familiar refrain: ``Sue the old company.''
But the ``old company'' no longer existed.
Taking legal action
On Sept. 11, 2002, three former workers of National
Machinery Co.--Chad and Donald Baker and Paul Martorana--
filed a class-action lawsuit in federal court in Toledo on
behalf of all the workers who lost their jobs.
They sued National Machinery Co., Citicorp Venture Capital,
and two related entities claiming the WARN Act was violated
when the plant closed without a 60-day notice. They asked for
lost wages, vacation pay, and medical expenses they said they
were owed, totaling at least $4,000 per worker.
They received a quick education into the limitations and
loopholes of the federal law.
But the biggest obstacle they faced was the wall of legal
agreements, contracts, and documents set up by a squad of
lawyers to make sure that National Machinery LLC was not
responsible for the debts and actions of National Machinery
Co.
Attorneys for Citicorp Venture Capital argued that their
client wasn't the liable employer under the law because even
though Citicorp was the majority owner of the ``old
company,'' it didn't make business decisions on behalf of
National Machinery.
Because the ``old company'' was now a mere shell, its
former employees fell into one of the most prominent pitfalls
of the WARN Act--finding someone who could pay the workers
what they were owed.
Nearly three years after the company closed, attorneys for
the employees and Citicorp Venture Capital agreed to a
settlement that would pay $375 per worker before taxes--just
pennies on the dollar of what most employees felt they were
owed. National Machinery LLC, as a completely new entity, had
no obligation to the workers and was not involved in the
settlement.
An ``insult''
Calling the settlement an ``insult'' and frustrated with
the law, 74 former National Machinery employees wrote the
judge to object to the settlement.
``There were a lot of very good employees that were
completely devastated when all this happened and some
satisfaction needs to be given to all of us,'' Virginia
Coffman wrote. Mrs. Coffman, along with her husband, John
Coffman, worked for National Machinery Co. for more than 28
years. ``This type of treatment cannot be allowed to go
unnoticed and just slide by, it has hurt many responsible
people who are still trying to recover.''
In a handwritten note, Steven Webster, a former National
Machinery employee from Upper Sandusky, Ohio, explained that
the company's sudden closing triggered a financial tailspin
that caused him to fall behind on child-support payments. Mr.
Webster explained that he needed to withdraw from his 401K
plan twice to keep banks from foreclosing on his home.
``For the six months I was without a job. I had my water,
electric, and gas shut off and had to live with my mother for
a while until I got a job because I couldn't afford food or
anything,'' Mr. Webster wrote.
Many of the workers sent copies of their letters to their
representatives in Congress and the Statehouse, including
U.S. Rep. Paul Gillmor (R., Tiffin), U.S. Sens. George
Voinovich and Mike DeWine, then-Gov. Bob Taft, and state Rep.
Jeff Wagner (R., Sycamore).
None of them was willing to fight for their constituents,
at least on the WARN Act.
On Nov. 15, 2004. a group of former National Machinery Co.
employees went to federal court in Toledo to object in person
to the proposed settlement.
On their day in court, U.S. District Judge James Carr
empathized with the plight of the workers, inviting them to
sit in the jury box and address the court. But the judge all
but told the workers that his judicial powers were limited by
a law with no teeth.
In the end, Judge Carr reluctantly approved the settlement,
declaring it a ``pittance'' and telling angry workers it was
the best settlement they could hope for under the weak
federal law.
``Most simply put, and most unhappily, you're out of
luck,'' Judge Carr told the workers. ``That statute has
proven to be no protection to you.''
Lingering bitterness
In Tiffin, more than five years after the ``old company''
suddenly was closed on a cold December day, time has healed
some of the wounds. But there still remains an undercurrent
of regret and bitterness.
Today there's a sign outside the headquarters of National
Machinery LLC that proudly proclaims it as a 130-year-old
company.
The former employees never called back by the ``new
company'' say the sign epitomizes the hypocrisy of what
transpired at National Machinery.
``What I've heard is they think they've done great--
`they've saved the company,' '' Mr. Poignon said. ``You don't
want to think that the place you've worked your entire life
has done something terrible. They didn't fulfill their
promises to a lot of people who gave their whole lives to the
company.''
The laid-off workers have struggled to come to terms with
the fact that National Machinery LLC--which conducts its
business from the old headquarters of National Machinery Co.
in Tiffin, builds the same machines, and serves the same set
of clients--wasn't legally required to pay their lost wages
and benefits.
Some recognize that Andrew Kalnow may have saved National
Machinery, but they question why the rescue couldn't have
been performed more humanely, taking into account the loyalty
of many of the company's longtime employees.
They believe Meshech Frost and Jane Frost Kalnow would be
disappointed.
``It's all about putting money in your pocket,'' Mr.
Poignon said. ``Maybe morality has changed. Maybe young
people think this is OK. But in our day, this wasn't a moral
thing to do. If you look at the business side of it, it looks
pretty good.
``But if you look at the human side of it, there's been a
lot of damage.''
[From the Toledo Blade, Oct. 11, 2007]
House Chairman Offers a Tougher WARN Act
(By Steve Eder)
The powerful chairman of the House Education and Labor
Committee yesterday submitted his proposal to better assure
workers are given notice before they lose their jobs in mass
layoffs or business shutdowns.
U.S. Rep. George Miller (D., Calif.) became the second
member of the U.S. House to introduce legislation to reform
the Worker Adjustment and Retraining Notification Act, known
as the WARN Act, a 19-year-old federal law that requires many
employers to provide 60 days' notice before layoffs.
Mr. Miller's bill was co-sponsored by U.S. Rep. Marcy
Kaptur (D., Toledo).
``These are really extraordinary improvements over existing
legislation,'' Miss Kaptur said during an interview
yesterday. ``There are more teeth in this [bill] to treat the
workers with more respect.''
After a Blade investigation in July highlighted the WARN
Act and its shortcomings, a host of key politicians in
Washington have addressed the need to reform the law. Among
those who have responded are Democratic U.S. Sens. Sherrod
Brown of Ohio, Hillary Clinton of New York, Edward Kennedy of
Massachusetts, John Kerry of Massachusetts, Barack Obama of
Illinois, former Sen. John Edwards of North Carolina, and
U.S. Rep. John McHugh, a Republican from New York.
The Blade's four-part investigation showed that the WARN
Act is so full of loopholes and flaws that employers
repeatedly skirt it with little or no penalty.
The series showed that in crafting the WARN Act, Congress
didn't charge the Department of Labor with enforcing the law.
Instead, displaced workers must take their former employers
to court to uphold their rights under the law.
An analysis of 226 WARN Act lawsuits filed by employees
showed that judges threw out more than half, citing loopholes
in the law.
``Everyone on the [House Education and Labor] committee is
familiar with the Blade's excellent work on this.'' Miss
Kaptur said yesterday. ``The Blade has really done the
country a favor in helping to highlight the importance of
this legislation and to draw national attention to it.''
Mr. Miller's bill--called The Early Warning and Health Care
for Workers Affected by Globalization Act--would overhaul the
existing WARN Act by increasing the notice period from 60 to
90 days, making the law apply to more employers, increasing
financial penalties for violators, and empowering the
Department of Labor to bring lawsuits on behalf of employees.
In addition, it covers part-time employees and groups of
100 or more workers laid off by one employer at multiple job
sites.
The legislation also extends COBRA health coverage for
recipients of trade adjustment assistance, allowing workers
who are 55 or older or employees with more than 10 years of
service to an employer to use COBRA coverage until they are
eligible for Medicare.
Miss Kaptur said Mr. Miller's new proposal has support from
the ``highest levels'' of
[[Page H12287]]
Congress, including House Speaker Nancy Pelosi (D., Calif.).
``There is a significant amount of momentum that has built
for this measure,'' Miss Kaptur said.
Ms. Pelosi, in a statement yesterday, said: ``For too long,
the Bush Administration has ignored the needs of workers who
are left unemployed through no fault of their own. Chairman
Miller and Congresswoman Kaptur have been relentless
champions for the cause of working men and women, and the new
legislation incorporates those concerns.''
Alex Conant, a White House spokesman, had no immediate
comment last night on Mr. Miller's WARN Act proposal, but
defended the President's record on helping workers.
``The President has aggressively fought for and delivered
tax relief for all taxpayers resulting in economic growth and
job creation,'' he said. ``The best thing Congress can do to
help workers and those seeking work is to keep taxes low to
grow our economy and create new jobs.''
Mr. Miller's bill shares some characteristics with a bill
introduced in the U.S. Senate by Mr. Brown and a bill in the
U.S. House by Mr. McHugh.
Mr. Brown's bill is co-sponsored by Ms. Clinton and Mr.
Obama, who are vying for the Democratic nomination for
president.
The proposals introduced by Mr. Brown and Mr. Hugh, both
called the FOREWARN Act, would lengthen the notification
period required before a plant closing or mass layoff,
increase penalties for violators, require more companies to
provide notice before layoffs, and allow the Department of
Labor and state attorneys general to represent workers in
lawsuits.
Julie Hurwitz, the former executive director of the Sugar
Law Center, a Detroit-based nonprofit legal center which
advocates for workers in WARN Act cases, said she is
``heartened'' by the congressional efforts to reform the law.
``These are all sorely needed revisions that have to be
made, particularly given the history of those loopholes that
have existed in the original statute giving employers all
kinds of wiggle room to essentially set their own agendas and
still not be held accountable under the original version of
the WARN Act,'' Ms. Hurwitz said.
Still, Ms. Hurwitz wants lawmakers to go a step further and
address increasingly common tactics used by employers to
evade their WARN Act duties.
``I would love to see somebody grapple with the use of
releases or waivers that are now quite frequently used by
employers to get out from any WARN Act liability or
responsibility,'' Ms. Hurwitz said.
Mr. McKEON. Mr. Speaker, we know that there have been job losses due
to trade, there have been job losses due to technology improvements.
There are other different reasons why jobs are lost, and we all feel
the pain of those who have lost their jobs.
Having said that, the answer is not increased bureaucracy and
increased problems that employers have to deal with in providing jobs
and in coming up with new technology to create new jobs. The answer
would be to streamline, to cut back the bureaucracy, yes, to give
temporary help to workers that have been displaced, to give them the
opportunity to get additional job training so that they can prepare for
other occupations, and then to try to spread that pain across the
country instead of just having it targeted on those specific plans.
We will offer later an amendment to this bill, a substitute, that
will do just that. In the meantime, I encourage all of my colleagues to
vote against additional bureaucracy and to vote against expanded
government intrusion into the marketplace that causes these
disruptions.
Mr. Speaker, I yield back the balance of my time.
Mr. GEORGE MILLER of California. Mr. Speaker, how much time do I have
remaining?
The SPEAKER pro tempore. The gentleman has 1 minute left.
Mr. GEORGE MILLER of California. I would urge my colleagues to
support this legislation.
We could leave this to the marketplace, and you could throw your
workers out on the street with no notice, no health care, no training,
and that's it, and just tell them, welcome to the globalized world.
We thought we would try a different tack. We thought we would give
workers notice where it is practical for employers to do so so the
worker would have time to deal with the implications of a lost job on
their family, to try to save their home, to try to save their kids'
education, try to save the automobile, figure out how to get another
job or how to get to retirement.
We also know that many workers that are released don't have health
care coverage or can't get it in the marketplace. So we extended COBRA.
We made that decision many years ago. Forty million people have used
that to get them to another health care plan or to hold on to their
coverage as long as they possibly could. We said for older workers, you
can take it to Medicare. If you are over 55 years old and you have
worked there 10 years, you can use COBRA. You pay all the premiums, you
pay the administrative cost, but at least you have coverage. For some
people, that's absolutely vital, because once they lose coverage, they
can't get it again because they can't afford it or because they have
preexisting conditions and they won't write that policy for those
individuals.
This is just about whether or not we are going to treat Americans
with some sense of decency who work all year long, provide for their
families, work hard, play by the rules or whether they are just going
to have to crash to the street and lose their income, their houses,
their cars, their kids' education. That's the choice we get today.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. That portion of time has expired.
The gentleman from Louisiana has 13 minutes left, and the gentleman
from Michigan has 16 minutes left.
General Leave
Mr. LEVIN. First, Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks on H.R. 3920.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. LEVIN. Mr. Speaker, I yield myself 4 minutes.
I would like today to talk about the facts, and next week we will
talk about the facts on trade legislation. I think the approval of the
U.S.-Peru FTA that came out unanimously from Ways and Means is the
antithesis of CAFTA. Let me talk about the facts on TAA, which relates
to those who are dislocated.
We received a letter dated October 23, 2007, from the Secretary of
Labor, and she said it is important, and I quote, ``that the negative
impacts that are borne by a few are offset in the form of assistance to
persons and firms that may be adversely affected.''
I just want to say the facts are very different. It isn't a few.
Trade isn't the only source of dislocation, but it is one of those and
a substantial source. It's not a few. It's hundreds of thousands of
people. We have lost 3 million manufacturing jobs in this country in
recent years.
The President, or at least the administration, has sent a letter
indicating their strong opposition, and I want to go over the facts
quickly. It says, and I quote, that this legislation converts TAA from
a trade-related program to a universal income support and training
program. That is simply not true, and I will come back to that when I
talk about services.
Number two, it says the increased duration of income support under
this bill would result in some workers remaining out of the workforce
and on assistance for 3 full years. That's really not accurate because
the first 26 weeks are usually taken up by unemployment compensation
when people are not using TAA directly. And then there are 2 years. In
order to receive income support, they have to be in a training program.
Now, there is a provision for an additional 6 months, but it applies to
a relatively few people. So these facts don't support the strong
opposition of the administration.
I am still hoping for bipartisan support. We did accept, voted for
three amendments from the minority side in the Ways and Means
Committee. We had three votes from the minority side, and I hope for
very, very many more here on the House floor.
Next, the administration statement talks about industry-wide
eligibility determinations and says that it would include workers not
demonstrably affected by trade. It's the Department of Labor that has
the ability to determine this, and so that sweeping statement is simply
not true. As to the service sector, the administration letter says the
bill does not clearly articulate any separation of such workers from
their employment, must be attributable to trade. I just ask they read
the language in the bill because it talks about articles or services
like or directly competitive with articles that are produced
[[Page H12288]]
or services that are provided by such firm that relate to overseas
competition.
Lastly, I want to say a word about health care. Look, we increased it
from 65 to 85 percent because 65 percent doesn't work. Only 10 percent
of those eligible for TAA now receive health care. We have an
obligation in this institution for people who are laid off, who are
dislocated, to receive health care for themselves and their family, and
65 to 70 percent isn't going to work. We know it. We know it.
Mr. McCRERY. Mr. Speaker, before yielding to the gentleman from North
Carolina, I was moved by Mr. Miller's presentation a few minutes ago
and would tell the Speaker, if he gets a chance, to tell the gentleman
that if they would look at some of the provisions we have in our bill,
it would make it, in fact, easier for all those people he is concerned
about to get the training and the retraining under TAA, that those
changes are not included in H.R. 3920 or in the bill that came out of
Education and the Workforce.
With that, I would yield 2 minutes to the gentleman from North
Carolina (Mr. Hayes).
(Mr. HAYES asked and was given permission to revise and extend his
remarks.)
Mr. HAYES. Mr. Speaker, I rise in support of H.R. 3920, the Trade and
Globalization Assistance Act of 2007. Textile workers in my district in
North Carolina have been disproportionately affected by trade and have
suffered a number of closings.
I appreciate what Mr. McCrery is doing. I wish also that these two
bills could have been better combined to take care of the advantages of
both.
As many of you know, I have introduced the Trade Adjustment
Assistance Reform Act, H.R. 1729, which seeks to expand the current TAA
program to give greater resources to displaced workers.
Earlier in the year, I asked Chairman Rangel to include the
provisions in my bill in the comprehensive TAA reauthorization bill. I
was pleased to see that many of these provisions made it into the
legislation.
Specifically, this bill expands TAA eligibility to include dislocated
workers affected by a shift in production in which workers' jobs are
moved to nations that have no preferential trade agreement with the
U.S., including, particularly, China and others.
It provides a strong increase in the health coverage tax credit. H.R.
3920 increases that credit from 65 to 85 percent. It increases TAA
funding authorization from $220 million to $440 million.
I was disappointed to see that H.R. 3920 did not include a key
provision to provide automatic eligibility for dislocated textile and
apparel workers. However, I was pleased to see that it does include a
provision that allows for industry-wide certifications. This bill
requires the Secretary of Labor to conduct industry-wide certifications
when three petitions from firms in the same industry, such as the
textile industry, are certified within a 6-month period. This doesn't
provide automatic eligibility for dislocated textile workers, but it is
a step in the right direction.
Since I have been in Congress, I have pledged that our office would
do all it could to assist displaced workers from the Eighth District in
the State of North Carolina. I am pleased that many provisions of the
reform act were included in the bill.
Mr. Speaker, I rise in support of H.R. 3920, the Trade and
Globalization Assistance Act of 2007.
The Trade Adjustment Assistance program is a good program. I have
worked hard to expand this program and make it better in the past, but
we must make additional changes to help our manufacturing workers in
this increasingly competitive global marketplace. While it is good that
these workers are going to get extended unemployment benefits and
insured health care, we all know that an unemployment check is no
substitute for a paycheck. But when workers are displaced, we want to
give them the skills to successfully re-enter the workforce.
As many of you know, I have introduced the Trade Adjustment
Assistance Reform Act, H.R. 1729, which seeks to expand the current TAA
program to give greater resources to displaced workers. Early in the
year, I asked Chairman Rangel to include the provisions in my bill into
the comprehensive TAA reauthorization bill. I was pleased to see that
many of these provisions made it into this legislation.
Specifically, this bill:
Expands TAA eligibility to include dislocated workers affected by a
shift in productions in which the workers' jobs are moved to nations
that have no preferential trade agreement with the U.S., including
China and others.
Provides a strong increase in the Health Coverage Tax Credit, HCTC.
H.R. 3920 increases the tax credit from 65 percent to 85 percent.
Increases TAA funding authorization from $220 million to $440
million.
I was disappointed to see that H.R. 3920 did not include a key
provision to provide automatic eligibility for dislocated textile and
apparel workers; however, I was pleased to see that it does include a
provision that allows for industry-wide certifications. This bill
requires the Secretary of Labor to conduct industry wide certifications
when three petitions from firms in the same industry, such as the
textile industry, are certified within a 6-month period. This doesn't
provide automatic eligibility for dislocated textile workers, but it is
a step in the right direction.
Mr. Speaker, I have enjoyed working with my good friend and colleague
Congressman Mike McIntyre on this bill and North Carolina's Rural
Center. The Rural Center is a non-profit that seeks to promote economic
development throughout North Carolina's rural areas, and the Center has
been a tremendous advocate for helping dislocated workers throughout
the state. This bill resembles many of the recommendations that were
published in the Rural Center's report, ``Gaining a Foothold--An Action
Agenda to Aid North Carolina's Dislocated Workers.''
Since I have been in Congress, I have pledged that our office would
do all it could to assist displaced workers from the 8th District and
the State of North Carolina. I am extremely pleased that many of the
provisions of the Trade Adjustment Assistance Reform Act were included
in this bill to make it possible for these workers to receive expanded
assistance and job training to help them to make a successful change in
their career.
I look forward to continuing to work with my colleagues as we debate
and develop legislation that seeks to help our Nation's workforce adapt
for new careers and opportunities.
Mr. LEVIN. It is my pleasure to yield 2 minutes to a colleague of
mine and a member of the Ways and Means Committee, Mr. McDermott from
Washington.
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Mr. Speaker, what makes America work is America's
workers.
Today, America is going to work harder to protect its workers. We
currently have a program that was put together in the middle of the
night in 2002 in the midst of the fast track legislation, and it was
never intended to work.
This bill provides protection for almost double the number of workers
covered by that program. This measure before us also improves a more
basic protection for all jobless workers, unemployment insurance. Only
one-third of America's unemployed now receive unemployment benefits,
and coverage rates for low-wage and part-time workers are considerably
lower.
This bill provides up to $7 billion to States implementing specific
policies designed to eliminate unnecessary barriers. We ask States to
count a worker's most recent wages when determining their eligibility.
We ask States to end discrimination against part-time workers. And we
ask them not to disqualify workers who must leave work for compelling
family reasons like domestic violence or taking care of a sick child or
following a spouse whose job has moved.
These are State options. We are not requiring them to do anything. If
they don't want it, they don't have to have the money. But we are
giving them the opportunity to take care of their unemployed workers.
The improvements promise to provide unemployment benefits to over half
a million jobless workers if adopted in every State. Women particularly
stand to gain from this bill because they are more likely to work in
part-time or low-wage jobs and are more likely to leave for family
reasons. The cost of supporting these reforms is fully offset by
extending an unemployment tax that has been on the books for 30 years,
and that President Bush is specifically asking us to continue. Any talk
about increasing taxes is simply empty rhetoric from the other side.
They know it, because the last time it was extended, they did it on
their watch.
Mr. Speaker, a vote in favor of this bill should be the easiest vote
that
[[Page H12289]]
every Member of Congress takes this year.
Mr. McCRERY. Mr. Speaker, I yield 4 minutes to the gentleman from
California (Mr. Herger), the ranking member of the Trade Subcommittee
of the Ways and Means Committee.
Mr. HERGER. Mr. Speaker, losing a job is one of the most disruptive
events that can occur to a worker and a family.
We should be helping these individuals to get back to work as soon as
possible. That's why I support the trade adjustment assistance and why
I introduced a short-term extension of the program to assist workers
displaced by trade through December.
{time} 1300
Unfortunately, I cannot support today's bill. In addition to
expanding the TAA program, which already costs the American taxpayers
nearly $1 billion each year, the majority shuts out numerous Republican
suggestions that would have instilled accountability and increased
flexibility for workers. One provision of their bill eliminates a
State's ability to choose the best employees to administer TAA by
requiring so-called State merit-based employees to run the program.
This means that the 25 States that currently use local employees or
outside contractors like nonprofit or community-based groups to operate
a more efficient and effective TAA program will no longer be able to do
so and will be required to hire more government workers.
I'm also amazed that the majority rejected our proposal to increase
accountability by requiring States and organizations that receive TAA
to meet performance measures. It should be the goal of all Members to
see that taxpayers' dollars are spent wisely, and the lack of such
measures is a fundamental shortcoming of the bill. This provision is
included in the Republican substitute that we will offer later today.
Far from forcing workers into just any old job, Republicans have
worked to find constructive ways to increase TAA program flexibility so
workers could have more options to train for a new job and have greater
access to employment services. But, again, these suggestions were
rejected by the majority.
We all want to help unemployed workers to get back on their feet
quickly. But TAA improvement, and especially an expansion of this
magnitude, should have been considered in the context of expanding
trade opportunities for all Americans through our pending free trade
agreements, including Colombia, Panama and South Korea, and
reauthorization of the trade promotion authority. Regrettably, we have
no commitments from the majority on these important measures, despite
months of work.
I urge my colleagues to reject H.R. 3920.
Mr. LEVIN. Mr. Speaker, it is my pleasure to yield 2 minutes to our
very, very distinguished colleague from Georgia (Mr. Lewis).
Mr. LEWIS of Georgia. Mr. Speaker, I want to thank my friend and
colleague for yielding.
Mr. Speaker, I rise in strong support of H.R. 3920, the Trade and
Globalization Assistance Act of 2007.
Under this administration, we have adopted a record eight free trade
agreements. In trade and globalization, there are winners and there are
losers.
Mr. Speaker, increasing the funding and efficiency of the trade
assistance program is the very least we can do as a Congress.
In my home State of Georgia, we have used more than 125 percent of
our allotment. Why? Because agriculture and textile jobs are
disappearing. They're leaving the State of Georgia.
These families are struggling just to make ends meet. They want to
work. They need to work. How can we oppose, how can we be against
investing in our greatest asset, the American workforce?
We can spend hundreds, thousands, millions and billions of dollars on
war. Can we spend just a few dollars on the workers of America?
To oppose this bill is heartless, it makes no sense, and it is
irresponsible.
So I urge all of my colleagues to vote ``yes'' for this important
bill.
Modification to Amendment No. 1 Offered by Mr. McCrery
Mr. McCRERY. Mr. Speaker, I ask unanimous consent that during
consideration of H.R. 3920, pursuant to House Resolution 781, the
amendment printed in part B of House Report 110-417 be modified by the
form I've placed at the desk.
The SPEAKER pro tempore. The Clerk will report the modification.
The Clerk read as follows:
Modification to amendment No. 1 offered by Mr. McCrery:
In the matter proposed to be inserted, strike section
307(c).
The SPEAKER pro tempore. Without objection, the amendment is
modified.
There was no objection.
Mr. McCRERY. Mr. Speaker, may I inquire as to the remaining time for
each side.
The SPEAKER pro tempore. The gentleman from Louisiana has 7\1/2\
minutes and the gentleman from Michigan has 8\1/2\ minutes.
Mr. McCRERY. Mr. Speaker, at this time I would yield to the gentleman
from Michigan (Mr. Camp) for a unanimous consent request.
(Mr. CAMP of Michigan asked and was given permission to revise and
extend his remarks.)
Mr. CAMP of Michigan. Mr. Speaker, the Trade Adjustment Assistance,
TAA, program continues to be an important program to American workers
who are left out of a job because of increased imports or jobs moving
overseas. When workers need assistance getting back on their feet, the
TAA program is there to help them get a new job or new career. It is
important for Congress to reauthorize this critical program that right
now is helping 15,000 workers in Michigan.
I support the Trade and Globalization Assistance Act. This bill
provides more funds for training programs, increases the size of the
health care tax credit, and assists workers who are in training
programs with additional income support. I wish, however, that Chairman
Rangel would have made the health care tax credit permanent instead of
eliminating it after 2 years. That being said, I believe it is
important that the bill raises the amount of health insurance
assistance from 65 percent to 85 percent. Now, out of work individuals
will be better able to afford health insurance while they look for a
new job.
In my district, where unemployment rates are higher than the national
figures, the TAA program has been an invaluable tool in getting people
into the classroom and into new, better paying jobs. The community
colleges in my district have done a good job of expanding their
curriculum to include new courses tailored to high-paying, expanding
industries in Michigan. I remain committed to doing whatever it takes
to maximize the Federal assistance available to help these workers and
their families. In so doing, I will vote for the bill before us this
afternoon.
Mr. McCRERY. Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, now I yield 2 minutes to another
distinguished member of this Ways and Means Committee, Mr. Neal from
Massachusetts.
Mr. NEAL of Massachusetts. Mr. Speaker, I want to acknowledge Mr.
Levin's role, in not only the construction of this legislation, but the
role that he's played, I think, in trade issues.
I rise in support of the Trade and Global Assistance Act of 2007.
Otherwise known as TAA, this program has been successful in
transitioning workers who have been displaced by foreign trade into new
jobs. Many workers and businesses in my home district in Massachusetts
have already been beneficiaries of assistance provided by TAA.
The bill we're considering today will provide extended and expanded
benefits and do so for more workers. It will also expand the critical
health care coverage that these displaced workers and their families
need.
The bill doubles the current funding amount for retraining of workers
for new jobs. But what might be the most exciting new feature in this
proposal is the manufacturing and redevelopment zones which are very
similar to the popular enterprise and empowerment zones that many
American cities have had great success with. These new manufacturing
zones will provide businesses with a host of incentives to redevelop in
areas that have suffered substantial reductions in manufacturing
employment.
TAA extension and expansion should go hand in hand with more free
trade agreements. As one who is a supporter of the Peru Free Trade
Agreement, which the committee of Ways and Means has just approved, TAA
is the safety net we need to enact in a case-
[[Page H12290]]
by-case opportunity to give benefits to workers and industries who have
been displaced or disrupted because of these agreements. Of course, it
is our hope and intent that all free trade agreements lift all
economies and industries of both participating countries. But if
businesses are impacted and workers are impacted, we must have TAA to
retrain that workforce for the jobs of the future.
I urge full adoption of this legislation.
Mr. McCRERY. Mr. Speaker, I yield 2 minutes to the gentleman from
Texas (Mr. Brady), a member of the Ways and Means Committee.
Mr. BRADY of Texas. Mr. Speaker, there's no question, we need to do a
better job of helping people who are laid off from their jobs. Even
though only 3 percent of this country's jobs are affected by trade, if
it's your job, it's an important one.
But when workers try to get help, what they find is this program is
bureaucratic and inefficient and slow to respond. There's a big
mismatch between the skills our workers have and the ready jobs that
are available for them. But TAA does not do a good job of matching
those skills and those workers. And I think there's been a good-faith
effort to try to make this a better program, but, in my view, the
underlying bill makes it a bigger program, not necessarily a better
one.
TAA is a leaky bucket, and I think we're making the bucket bigger and
we're pouring more money into it. I don't think we're fixing the holes
that really harm workers.
For example, in the bill today we actually enhance duplication of
efforts rather than streamline it. This bill prohibits a worker who's
laid off for trade reasons to going to the local job training center to
get help. In fact, what we require is a new State-run program that has
no track record, has no proven success, and we relegate them to really
a second tier training system.
In Houston we have WorkSource. It's at 35 different sites around our
region. It helps about 340,000 workers laid off, has put 53,000 back to
work at higher than average salaries. It's a great proven product.
Under this bill, a worker can't even go down the street to take
advantage of those computers and that networking and that work with
businesses, but we set up a less efficient one, unproven for them. It
doesn't make sense.
I object to the pay-for as well. We are actually making U.S.
companies less competitive as they sell overseas. As you know, today
it's not enough to buy American; you have to sell American. We want to
sell John Deere tractors and Apple computers around the world, and this
bill, unfortunately, actually punishes those companies and hurts the
workers for them.
The Republican substitute is more flexible. It's less bureaucratic,
and provides some commonsense training programs that will actually get
workers back to work at a job they can raise their family on, which is
what I think there is bipartisan support for.
Mr. LEVIN. Mr. Speaker, I yield 1\1/2\ minutes to another
distinguished member of the Ways and Means Committee, Mr. Becerra from
California.
Mr. BECERRA. Ladies and gentlemen, we would not send our troops into
battle without the best training, armor or weapons. And in that same
vein, in today's hypercompetitive global economy, we must know that our
workers are the best trained, equipped with the best tools to challenge
and excel in the face of that competition.
You name the time or the place, in a fair fight, give me an American
worker at my side, and I know I'll come out okay.
But the tragedy here is that, just as we have learned that too many
of our troops deployed to Iraq without sufficient body armor or vehicle
protection and too many Iraq soldiers have come home to face deplorable
or indifferent health care treatment as veterans, for years, too many
Americans, as workers, have faced bureaucratic indifference and
roadblocks in securing training and adjustment assistance after losing
a job due to expanded trade. Today, we plan to change that.
H.R. 3920 doubles job training opportunities so no American worker
will face getting in that line and finding out that when he or she gets
up there the money's run out for training.
This bill also includes service employees and public employees in the
protection, which we haven't had before. If you're a truck driver who
loses a job because your company, that other company tells you, well,
we no longer need your trucking services because that company's now
moving to another country, you've lost your job because of trade, and
you should be included as well. We make sure that that employer who has
to begrudgingly tell that employee ``I have to let you go,'' that that
employer can make sure that if it's a main customer that went abroad,
you will be protected as an employee.
Mr. Speaker, this is a time for us to stand up for American workers.
It's not their fault. They should be covered, just as our troops should
be covered.
Mr. McCRERY. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman
from Texas (Mr. Hensarling).
Mr. HENSARLING. Mr. Speaker, clearly, anyone who loses their job in
America due to factors beyond their control deserve help. That's why we
have the unemployment insurance program in the first place.
TAA, obviously, goes beyond that and says, if you lose your job
because of foreign trade, then you're going to get extra benefits.
I would be even more enthusiastic about the program if I thought
there was any agenda to promote trade by the Democrat majority. I see
none. They have allowed the fast track to elapse. I have yet to see any
trade agreement come to this floor. And I can say in Texas, the State
that I hail from, one out of seven jobs is tied to trade. Trade is
important. But I see no pro trade agenda here. What I do see is a
massive expansion of another government program with a massive tax
increase to go along with it.
Now, we know that roughly 3 percent of Americans will have their jobs
displaced by trade. We know that trade will create far more jobs.
But again, I might be more enthusiastic about this legislation if I
saw the Democrat majority step up to do something about those who lose
their jobs due to frivolous litigation. And yet they've excelled at
preventing any kind of tort reform in this economy whatsoever.
I might be more enthusiastic about this package if I saw the Democrat
majority do anything to address those who lose their jobs due to excess
taxation, particularly on small businesses, the job engine of America.
{time} 1315
And yet we know that the distinguished chairman of the Ways and Means
Committee just announced ``the mother of all tax hikes.'' Millions and
millions of small businessmen all across America could see their taxes
increase 25 percent. How many Americans are going to lose their job?
Where's the sympathy for those people? Where is their particular
special carve-out in the unemployment insurance program? I don't see
it.
And yet again another current theme we see in all the Democratic
legislation is let's somehow loosen up the standards of who can qualify
here. Whether it be for housing benefits and agriculture
appropriations, whether it be in SCHIP, what we see is language to make
it easier for illegal immigrants to access these benefits. We see it
each and every time that the bill comes to the floor. We see it yet
again in this legislation. Clearly, the American people reject this.
That's why this particular program needs to be rejected.
Mr. LEVIN. I would now like to yield 1\3/4\ minutes to another
distinguished member of our committee, Mr. Blumenauer from Oregon.
Mr. BLUMENAUER. My good friend from Texas, if he would have bothered
to talk to the ranking member of the Ways and Means Committee, who was
seated on the floor next to him, would have known that there is a trade
bill coming to the floor, passed unanimously, 39-0, that is a
reflection of what we were sent here to do, which was to redefine,
redirect these policies so that they were win-wins, so that they
benefited the economy, not at the expense of working men and women, not
at the expense of the environment. And the legislation we have before
us here today is an extension of that strategy.
There is a clash of philosophies that you are going to hear in the
next hour.
[[Page H12291]]
We have included a greater scope, including services, as you have
talked about. The notion is to expand and enhance, to deal with people
who are disadvantaged, in some cases harmed, because of global impacts
beyond their control. Our Republican friends would propose to redirect
and reduce.
We put more money for more employees with issues of health care.
Their proposal, if you look at it carefully, is doing it on the cheap,
perhaps with contract employees, capping training assistance at $8,000
over 2 years. Just because you call it a scholarship doesn't mean that
it's not going to be a cut for over 25 percent of the workers on the
current program in States like Pennsylvania. Even in Nebraska, 80
percent are going to see a 25 percent reduction because they already
benefit from more expensive programs.
I hope that as a result of the debate today where people look behind
the premises of our friends on the other side of the aisle, the program
here, there will be an opportunity to make a judgment about what is the
approach. Ultimately I hope we unite behind the approach in the bill
before us, and I urge its adoption.
Mr. McCRERY. Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. How much time is remaining?
The SPEAKER pro tempore. The gentleman from Michigan has 3\1/4\
minutes. The gentleman from Louisiana has 3 minutes.
Mr. LEVIN. Mr. Speaker, I now yield 1\1/2\ minutes to another very
active member of our committee, the Ways and Means Committee, Mr.
Pascrell from New Jersey.
Mr. PASCRELL. Mr. Speaker, to the gentleman from Texas, he obviously
didn't read the bill. I recommend that you read the bills before you
get up on the floor and make a fool of yourself.
It says right here, section 114, ``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 the law.''
You stoop to conquer. You should be ashamed of yourselves. Every time
you get in the corner, you've got to bring up illegal aliens. It says
it in the law.
By the way, any law that I know of dealing with people who are out of
work deals only with those people who are here legally. Get it? It's
easy. It's simple. There are only three words here with more than three
syllables. You've got to understand that, instead of coming to this
floor and embarrassing yourselves.
We know that the dramatically accelerated pace of globalization is
one of the more major phenomena of this era. We accept this. But we
also believe that we must help shape globalization and mitigate its
negative side effects so that American workers are no longer left
behind. Dislocated workers put out of their jobs as a result of trade
decisions must be protected. We need to first stop the hemorrhaging of
the jobs. Just this morning, we had a 39-0 vote. How dare someone come
to the floor and twist the record.
I want his words examined, the gentleman from Texas. I want his words
examined. You can't come to the floor and say whatever you want. This
is not covered speech.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore. The Chair will remind Members that they
should address their remarks to the Chair and not to other Members in
the second person.
Mr. McCRERY. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I understand how people can get emotional about some of
the arguments with respect to these bills. My good friend from New
Jersey is clearly agitated, and I understand that. But I would tell him
that some very good lawyers have looked at the language in the bill,
which is different from current law language with respect to providing
benefits to illegal immigrants. And categories two and three, which the
gentleman cited, ``lawfully present in the United States'' or
``permanently residing in the United States under color of law,'' do
present problems. First, there are multiple definitions of what
``lawfully present'' means in current law and regulation. Even more
fundamentally, literally millions of students and tourists and other
``nonimmigrants'' are ``lawfully present'' in the United States each
year. The provision in the bill appears intended to make these groups
eligible for TAA benefits despite their not being authorized to work in
the United States in the first place.
And the category of ``permanently residing under color of law'' is
still more problematic. Even though the welfare reform law sought to do
away with this ambiguous category, it continues to be used in some
programs. SAA regulations, for example, define PRUCOL, permanently
residing in the United States under color of law, to include, among
other categories, ``aliens living in the United States with the
knowledge and permission of the INS/CIS and whose departure that agency
does not contemplate enforcing.'' That is, those who are illegally
present and who could be deported but are not. This category could
include individuals who were originally authorized to work in the
United States for a temporary period of time, lost that job, and under
current law were supposed to leave the United States but remained
despite the requirement that they leave. It could also include
individuals who enter the United States illegally in the first place
who are known to the government to be here but who are not being
deported.
So, Mr. Speaker, I understand how we can all get emotional about
this, but the fact is, at least according to the lawyers that have
looked at this information and advised us, the bill does loosen current
law with respect to verifying that people who are here illegally are
not due the benefits. As the gentleman said, it appears that the intent
of the bill is not to qualify those people, but the language of the
bill, unfortunately, according to some very good lawyers, might,
indeed, allow qualification for those who are here illegally.
Mr. Speaker, I didn't intend to get into all of that. But the fact is
that the bill that is before us, I believe, goes way too far in
spending, way too far in increasing taxes, and, for those two things
alone, should be rejected.
Mr. LEVIN. Mr. Speaker, how much time do I have?
The SPEAKER pro tempore. The gentleman has 1\3/4\ minutes.
Mr. LEVIN. Mr. Speaker, I yield the balance of that to the original
sponsor of this legislation going back a number of years, Mr. Smith of
Washington.
(Mr. SMITH of Washington asked and was given permission to revise and
extend his remarks.)
Mr. SMITH of Washington. Thank you, Mr. Chairman, for your work on
this legislation.
I strongly support expanding trade adjustment assistance for a very
simple reason. Workers in our country need help.
We all acknowledge that the economy has changed. And one of the main
features of that change is rapid displacement of workers. They have to
update their skill. They have to change jobs. It used to be you could
get a job for a company that you knew was going to be there and a job
that you knew was going to be there, and everybody acknowledges that
has changed, primarily because of global competition and because of
technology.
So this bill asks one very simple question: Do you think the workers
of this country need help in this new environment with all of that
rapid change, with all of the displacement that we have heard about
from both sides of the aisle today? Do the workers in this country need
more help to deal with that? Do they need a bridge between jobs, income
support? And do they need training to help them be qualified for new
jobs that will be available? And do they need health care support since
so many people in this country's health care is dependent upon their
jobs?
The answer to all of those questions is obviously yes. That is what
this bill does. It expands the number of people who will have access to
that desperately needed help. It gives our workers a chance.
We all know that the new economy in globalization is here to stay. We
acknowledge that. But what we on this side of the aisle want to do is
help our workers deal with that instead of just saying, Good luck. It's
changed. You're going to be displaced. We hope it works out for you.
Overall, we'll be fine.
[[Page H12292]]
We focus on those workers who need help, and this bill gives them
more help. It expands the service sector workers, and it expands the
number of displaced workers in this country who will get that income
support, that job training, and that health care that they so
desperately need.
I strongly urge support for this legislation.
Mr. KIND. Mr. Speaker, today I rise in strong support of the Trade
and Globalization Assistance Act so that all American workers will be
able to realize the benefits of the global economy. H.R. 3920 will
update our system of trade adjustment assistance, TAA, to include
service sector employees, strengthen benefit levels and duration,
improve worker training, and stimulate economic recovery in affected
communities. These are needed changes to ensure that workers affected
by globalization are taken care of if their job is lost.
International trade is an essential part of the American economy
today and in the future. In fact, total U.S. trade of goods and
services last year totaled $3.6 trillion. The reduction of trade
barriers in recent years has led to a corresponding increase in trade
volume, to the benefit of both American businesses and American
consumers. Knowing that these benefits do not accrue evenly across all
industries, however, Congress established the TAA program to help
smooth the transition for workers who have to make the shift to a more
competitive field.
The safety net for outsourced jobs, which consists of extended
unemployment benefits, worker training, and a health care tax credit,
was first enacted in 1962 and updated in 2002. This update, however,
did not go far enough to bring the program up to date with current
trade and labor realities. For one, the benefits currently extend only
to workers in the manufacturing sector, despite the fact that a growing
percentage of jobs shifted overseas have been from the services sector,
such as telemarketing and financial services. Since the nature of the
American economy has moved away from a reliance on manufacturing, it
only makes sense that workers in the services sector be eligible for
the same support as industrial workers.
The bill makes a number of other changes to strengthen TAA benefits,
including an increase in the health care tax credit, an extension of
income support and training period, and a large increase in the overall
funding level to ensure that no eligible worker is turned away due to
lack of program funds.
But H.R. 3920 also takes the TAA program beyond the effects on
individual workers by offering new tax incentives for investment in
distressed communities that have lost manufacturing jobs. The whole
notion of worker assistance is meaningless without creating new jobs
for displaced employees. Targeting investment into communities with an
available workforce would benefit employers and employees alike and
maintain vibrant towns and cities across this Nation.
Finally, this bill considers the needs of the larger Federal-State
unemployment insurance (UI) system by dedicating $100 million annually
for the States to improve UI administration. Additional funding for
this purpose would also be available from Federal unemployment trust
funds. This money would be an incentive for States to cover part-time,
low-wage, and other workers in State UI laws.
I look forward to passing this bill today in anticipation of also
passing pending trade deals in the coming weeks and months. By giving
our businesses the freedom they need to sell American goods and
services abroad, we are ensuring that the American economy will stay
strong and competitive in the future. By assuring our employees that
there will always be a place for good American workers, we will ensure
a strong labor force capable of evolving along with the global economy.
I support H.R. 3920, and I urge my colleagues to vote for it today.
Mr. PATRICK J. MURPHY of Pennsylvania. Mr. Speaker, I rise today to
support much-needed economic redevelopment through the Trade and
Globalization Assistance Act. This forwarding-thinking legislation will
ensure that America's workers receive the training and assistance they
need to compete in the global economy.
Globalization has had a significant impact on the American workforce,
but our national policies have not kept pace with international
economic changes. Gone are the days when men and women began and ended
their careers at a steel or textile mill. Now, even customer service
professionals and software engineers are losing jobs to overseas
competition.
Thirty years ago, in my district in Bucks County, Pennsylvania, more
than 46,000 people were employed in manufacturing jobs. Like many other
working-class communities, my district suffered severe job loss when
foreign competition forced major employers like US Steel, Jones Apparel
and Rohm and Haas to shut-down most of their operations. By 2005,
manufacturing employment in Bucks County had fallen 34 percent. The
departure of manufacturing jobs resulted in vacant properties,
abandoned buildings and contaminated land--and in Bristol,
Pennsylvania, crumbling roads and poor drainage put families at risk
during a recent flood. But most of all, the decline in manufacturing
jobs decline left thousands of middle class workers out of a job.
Mr. Speaker, the Trade and Globalization Assistance Act makes
substantial improvements to the Trade Adjustment Assistance Program and
gives communities like mine a chance.
Through the Manufacturing Redevelopment Zone Program, this
legislation will provide important tax incentives to cities and towns
like those in my district that have suffered substantial reductions in
manufacturing employment. Communities designated as manufacturing
redevelopment zones will have a second-chance to revitalize their
economy by attracting new investments that will create family-
sustaining jobs. This program will help lift-up some of our Nation's
poorest communities, but it is also a chance to demonstrate our
commitment to American innovation.
While towns in my district still face many challenges, lower Bucks
County has begun to turn the comer. Over the past 5 years, we have
worked hard attract new investment, support workforce development and
improve infrastructure.
The ongoing redevelopment at a former US Steel site is an outstanding
example of my community's potential. Through incentives and a
commitment to revitalization, that site is now home to a clean wind
power manufacturer that employs over 800 people. More high-tech, green
energy companies plan to open facilities in the near future. We have
made great progress, but there is more work to be done.
The additional incentives provided under a manufacturing zone
designation would allow towns in lower Bucks County to make
infrastructure improvements, cleanup brownfields, attract new
investments and create jobs. Through ingenuity and good old fashioned
American competitiveness we will move even closer to economic
revitalization and energy independence.
Mr. Speaker, Lower Bucks County has enormous potential and I pledge
to do everything I can to encourage economic growth and support middle
class families in my district. Towns in my district are still
struggling and I am proud to partner local leaders and the business
community to support economic development.
By passing this bill, we give hard working Americans the support they
need and strengthen a foundation for economic leadership. I urge my
colleagues to support this critical piece of legislation.
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in support of
H.R. 3920, The Trade and Globalization Assistance Act of 2007,
introduced by my distinguished colleague from New York, Chairman
Rangel. This important legislation updates and overhauls the antiquated
Trade Assistance Act for workers program of 1962.
In today's globalized economy, no worker is untouched by the
phenomenon of the global trade market. In 1962, when the Trade
Assistance Act was conceived and implemented, the status of American
workers was much different than it is today. The existing and outdated
legislation is marred with arbitrary eligibility criteria and
inconsistencies as well as a lack of coverage for workers in industries
that were not yet prominent.
Mr. Speaker, the Trade and Globalization Assistance Act of 2007,
integrates all workers whose efforts in building our global economy
make our economy flourish within the international system. Coverage
will now be granted to workers in the service industry, which had yet
to significantly develop in the 1960's, as well as secondary and
offshore workers. The bill eliminates restrictions, ensuring that all
workers impacted by trade are covered, regardless of where the factory
relocated to or where the import competition came from. This
legislation will also ensure automatic certification for workers
covered by ITC injury determinations, which is a major issue in the
current economy in which products and technologies quickly are eclipsed
and job security is never ensured. Furthermore, this legislation will
work to synchronize the Trade Assistance Act certification process
which is currently on a firm-by-firm basis. Consistency in our
treatment of workers is absolutely imperative, to ensure we have an
equitable system which protects the backbone of our Nation.
The U.S. Chamber of Commerce, the world's largest business federation
representing more than three million businesses and organizations of
every size, sector, and region, has urged Congress to pass this
legislation. As representatives of America's workers, it is our duty to
ensure that they receive all the possible security and benefits of
their labor, especially in today's unpredictable global economy. This
bill extends TAA job training and health benefits to service workers
who lose their jobs due to global trade and covers more manufacturing
workers. It also dramatically improves TAA health care benefits and
[[Page H12293]]
strengthens job training benefits in order to ensure that our workers
develop the skills they need to be successful in well paying jobs. This
bill further protects American workers by creating new benefits and tax
incentives for industries and communities that have experienced
manufacturing job losses, promotes long-needed reforms in unemployment
benefits, and strengthens notification of workers laid off in plant
closing or in mass layoffs.
This Congress has charted a New Direction Congress when it comes to
protecting American workers and by passing an increase in the minimum
wage. We must also ensure that America remains a competitive economic
power. We must ensure that our workforce is adequately skilled and
provided for, not just the privileged few who benefit from the
prosperity of our nation but also the labor of everyday Americans who
ensure the continued growth of our economy.
Mr. Speaker, I feel that as this country moves forward, this bill is
an important first step in ensuring that it does not do so at the
expense of American workers.
Mr. VAN HOLLEN. Mr. Speaker, I rise today in support of H.R. 3920,
the Trade and Globalization Assistance Act of 2007.
Growing global economic integration means the U.S. economy is more
protected from domestic economic shocks because more people in more
countries are buying American goods and services. But globalization can
also produce harmful short term affects--such as when American jobs are
lost as a result of trade. That is what H.R. 3920 is about.
H.R. 3920 helps those American workers who lose their jobs by no
fault of their own as a result of trade and who need assistance in
meeting the new challenges of the changing global economy. The types of
assistance provided include additional training, long term education,
short term income support, and health care.
The bill expands trade adjustment assistance to service workers
including government employees who are laid off because of trade. When
trade adjustment assistance started in 1962, U.S. trade in services was
not significant. Today, the service sector comprises more than 70
percent of the U.S. economy. H.R. 3920 updates trade adjustment
assistance to account for the size and growing significance of the
American service sector.
The bill also expands assistance to more manufacturing workers by
eliminating restrictions on what country a U.S. factory's jobs are
moved to or whether the loss of jobs are ``downstream'' so that all
workers impacted by trade are covered regardless of where the factory
relocates or where the import competition came from.
H.R. 3920 also helps American workers adapt to the needs of the
changing global economy by enabling them to upgrade their skills. This
bill doubles training assistance and provides up to 130 weeks of
additional income support for workers who require a longer educational
period, such as when finishing a college degree.
Mr. Speaker, today the Peru Free Trade Agreement was reported out of
the Ways and Means Committee by a vote of 39-0. Many of us supported
the Peru FTA because of the landmark workers rights and environmental
provisions negotiated this past May that were inserted in the
agreement. They were also influenced and encouraged by H.R. 3920
because they, like myself, feel more confident that American workers
harmed by trade will get the assistance they need to meet the new
challenges created by a global economy.
I am proud to support H.R. 3920 the Trade and Globalization
Assistance Act of 2007, and I encourage my colleagues to do the same.
Mr. ETHERIDGE. Mr. Speaker, I rise today in support of H.R. 3920, the
Trade and Globalization Act of 2007.
Mr. Speaker, it has been over two decades since there has been any
meaningful updating of this important legislation. Effective job
training gives workers the tools they need to make the most of their
employment and economic opportunities.
When the first Trade Adjustment Assistance Act was passed in 1962 the
job losses addressed by this law were mainly manufacturing jobs; today
our economy faces the threat of job losses in the service industry as
well.
H.R. 3920 makes important updates to this initiative, including
provisions that close outdated loopholes to make anyone who loses a job
as a result of a factory moving overseas to be eligible for Trade
Adjustment Assistance. The bill doubles the training fund cap to re-
train displaced workers from $220 to $440 million dollars, makes more
service industry workers such as customer service workers eligible for
assistance, and finally, increases the Health Care Tax Credit subsidy
for displaced workers who have lost their healthcare coverage to 85
percent.
Mr. Speaker, this is timely and needed legislation. I urge my
colleagues to support this bill and vote yes on H.R. 3920.
The SPEAKER pro tempore. All time for debate on the bill has expired.
Amendment No. 1 Offered by Mr. McCrery, as Modified
Mr. McCRERY. Mr. Speaker, I offer an amendment.
The SPEAKER pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 1 printed in part B of House Report 110-417
offered by Mr. McCrery, as modified:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Helping
American Workers Adjust to Globalization and Win Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS
Subtitle A--Petitions and Determinations
Sec. 101. Petitions.
Sec. 102. Group eligibility requirements.
Sec. 103. Determinations by Secretary of Labor.
Sec. 104. Benefit information to workers.
Sec. 105. Administrative reconsideration of determinations by Secretary
of Labor.
Subtitle B--Program Benefits
Chapter 1--Trade Readjustment Allowances
Sec. 111. Qualifying requirements for workers.
Sec. 112. Weekly amounts.
Sec. 113. Limitations on trade readjustment allowances.
Chapter 2--Training, Other Reemployment Services, and Allowances
Sec. 121. Reemployment services.
Sec. 122. Training.
Sec. 123. Job search allowances.
Sec. 124. Relocation allowances.
Subtitle C--General Provisions
Sec. 131. Agreements with States.
Sec. 132. Authorization of appropriations; incentive payments to
States.
Sec. 133. Phase-out of demonstration project for alternative trade
adjustment assistance for older workers.
Sec. 134. Wage supplement program.
Sec. 135. Definitions.
Sec. 136. Capacity-building grants to enhance training for workers.
Subtitle D--Effective Date
Sec. 141. Effective date.
TITLE II--OTHER TRADE ADJUSTMENT ASSISTANCE PROGRAMS AND RELATED
PROVISIONS
Sec. 201. Technical assistance for firms.
Sec. 202. Extension of trade adjustment assistance for firms.
Sec. 203. Extension of trade adjustment assistance for farmers.
Sec. 204. Judicial review.
Sec. 205. Termination.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Credit reduction for failures relating to co-enrollment of
participants and program performance reports.
Sec. 302. TAA wage supplement participants eligibility for credit for
health insurance costs.
Sec. 303. Special allocation under new markets tax credit in connection
with trade adjustment assistance.
Sec. 304. Expedited reemployment demonstration projects.
Sec. 305. Increase in percentage of TAA and PBGC health insurance tax
credit.
Sec. 306. Collection of unemployment compensation debts.
Sec. 307. Offsets.
TITLE IV--WORKFORCE INVESTMENT IMPROVEMENT
Sec. 401. Short title.
Sec. 402. References.
Subtitle A--Amendments to Title I of the Workforce Investment Act of
1998
Sec. 411. Definitions.
Sec. 412. Purpose.
Sec. 413. State workforce investment boards.
Sec. 414. State plan.
Sec. 415. Local workforce investment areas.
Sec. 416. Local workforce investment boards.
Sec. 417. Local plan.
Sec. 418. Establishment of one-stop delivery systems.
Sec. 419. Eligible providers of training services.
Sec. 420. Eligible providers of youth activities.
Sec. 421. Youth activities.
Sec. 422. Comprehensive programs for adults.
Sec. 423. Performance accountability system.
Sec. 424. Authorization of appropriations.
Sec. 425. Job Corps.
Sec. 426. Native American programs.
Sec. 427. Migrant and seasonal farmworker programs.
Sec. 428. Veterans' workforce investment programs.
Sec. 429. Youth challenge grants.
Sec. 430. Technical assistance.
[[Page H12294]]
Sec. 431. Demonstration, pilot, multiservice, research and multi-State
projects.
Sec. 432. Community-based job training.
Sec. 433. Evaluations.
Sec. 434. National dislocated worker grants.
Sec. 435. Authorization of appropriations for national activities.
Sec. 436. Requirements and restrictions.
Sec. 437. Nondiscrimination.
Sec. 438. Administrative provisions.
Sec. 439. State legislative authority.
Sec. 440. Workforce innovation in regional economic development.
Sec. 441. General program requirements.
Subtitle B--Adult Education, Basic Skills, and Family Literacy
Education
Sec. 451. Table of contents.
Sec. 452. Amendment.
Subtitle C--Amendments to the Wagner-Peyser Act
Sec. 461. Amendments to the Wagner-Peyser Act.
Subtitle D--Amendments to the Rehabilitation Act of 1973
Sec. 471. Findings.
Sec. 472. Rehabilitation Services Administration.
Sec. 473. Director.
Sec. 474. Definitions.
Sec. 475. State plan.
Sec. 476. Scope of services.
Sec. 477. Standards and indicators.
Sec. 478. Reservation for expanded transition services.
Sec. 479. Client assistance program.
Sec. 480. Protection and advocacy of individual rights.
Sec. 481. Chairperson.
Sec. 482. Authorizations of appropriations.
Sec. 483. Conforming amendment.
Sec. 484. Helen Keller National Center Act.
Subtitle E--Transition and Effective Date
Sec. 491. Transition provisions.
Sec. 492. Effective date.
TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS
Subtitle A--Petitions and Determinations
SEC. 101. PETITIONS.
Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a))
is amended--
(1) in paragraph (1), by striking ``simultaneously with the
Secretary and with the Governor of the State in which such
workers' firm or subdivision is located'' and inserting
``with the Secretary'';
(2) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(3) by inserting after paragraph (1) the following new
paragraph:
``(2) Upon receipt of a petition filed under paragraph (1),
the Secretary shall promptly notify the Governor of the State
in which such workers' firm or subdivision is located of the
filing of the petition and its contents.'';
(4) in paragraph (3) (as redesignated by paragraph (2) of
this section), by striking ``a petition filed under paragraph
(1)'' and inserting ``a notice under paragraph (2)''; and
(5) in paragraph (4) (as redesignated by paragraph (2) of
this section)--
(A) by striking ``the petition'' and inserting ``a petition
filed under paragraph (1)''; and
(B) by inserting ``and on the Website of the Department of
Labor'' after ``in the Federal Register''.
SEC. 102. GROUP ELIGIBILITY REQUIREMENTS.
(a) In General.--Subsection (a)(2)(B)(i) of section 222 of
the Trade Act of 1974 (19 U.S.C. 2272) is amended by
inserting at the end before the semicolon the following:
``that contributed importantly to such workers' separation or
threat of separation''.
(b) Adversely Affected Secondary Workers.--Subsection (b)
of such section is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) by redesignating paragraph (3) as paragraph (4);
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) the sales or production, or both, of such firm or
subdivision have decreased absolutely; and''; and
(4) in subparagraph (A) of paragraph (4) (as redesignated
by paragraph (2) of this subsection), by inserting at the end
before the semicolon the following: ``and contributed
importantly to the workers' separation or threat of
separation determined under paragraph (1)''.
(c) Definitions.--Subsection (c) of such section is
amended--
(1) in paragraph (3), by striking ``, if the certification
of eligibility under subsection (a) is based on an increase
in imports from, or a shift in production to, Canada or
Mexico''; and
(2) by adding at the end the following new paragraphs:
``(5) The term `article' means--
``(A) a tangible product subject to duty under the
Harmonized Tariff Schedule of the United States which is not
incidental to the provision of a service; or
``(B) an intangible product, such as a digital product
(including computer programs, text, video, image and sound
recordings, and similar products), that would be subject to
duty under the Harmonized Tariff Schedule of the United
States if the intangible product were embodied in a physical
medium and which is not incidental to the provision of a
service.
``(6) The term `worker' means--
``(A) with respect to a firm described in subsection (a)--
``(i) an individual directly employed by the firm that
produces an article that is the basis for a determination
under subsection (a) and who performs tasks relating to the
production of the article; or
``(ii) an individual who is under the operational control
of the firm that produces an article that is the basis for a
determination under subsection (a) pursuant to a contract or
leasing arrangement and who performs tasks relating to the
production of the article;
``(B) with respect to a firm that is a supplier described
in subsection (b)--
``(i) an individual directly employed by the firm that is a
supplier and who performs tasks relating to the production of
component parts for an article that is the basis for a
determination under subsection (a); or
``(ii) an individual who is under the operational control
of the firm that is a supplier pursuant to a contract or
leasing arrangement and who performs tasks relating to the
production of component parts for an article that is the
basis for a determination under subsection (a); and
``(C) with respect to a firm that is a downstream producer
described in subsection (b)--
``(i) an individual directly employed by the firm that is a
downstream producer and who perform tasks relating to the
provision of additional, value-added production processes for
an article that is the basis for a determination under
subsection (a); or
``(ii) an individual who is under the operational control
of the firm that is a downstream producer pursuant to a
contract or leasing arrangement and who performs tasks
relating to the provision of additional, value-added
production processes for an article that is the basis for a
determination under subsection (a).''.
SEC. 103. DETERMINATIONS BY SECRETARY OF LABOR.
(a) Workers Covered by Certification.--Subsection (b) of
section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is
amended--
(1) in the matter preceding paragraph (1), by striking
``under this section'' and inserting ``under subsection (a)
or (d) of this section''; and
(2) in paragraph (2), to read as follows:
``(2) after the earliest of--
``(A) the date that is two years after the date on which
certification is granted under subsection (a);
``(B) the date that is two years after the date of the
earliest determination, if any, denying certification under
subsection (a); or
``(C) the termination date, if any, determined under
subsection (e).''.
(b) Publication of Determination.--Subsection (c) of such
section is amended--
(1) by striking ``his determination'' and inserting ``a
determination'';
(2) by inserting ``and on the Website of the Department of
Labor'' after ``in the Federal Register''; and
(3) by striking ``his reasons'' and inserting ``the
Secretary's reasons''.
(c) Amendment to Certification.--Such section is further
amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Whenever the Secretary determines, with respect to
any certification of eligibility of the workers of a firm or
subdivision of the firm, and subject to such regulations as
the Secretary may prescribe, that good cause exists to amend
such certification, the Secretary shall amend such
certification and promptly publish notice of such amendment
in the Federal Register and on the Website of the Department
of Labor together with the reasons for making such
determination.''.
(d) Termination of Certification.--Subsection (e) of such
section (as redesignated by subsection (c)(1) of this
section) is amended--
(1) by striking ``he shall'' and inserting ``the Secretary
shall'';
(2) by inserting ``and on the Website of the Department of
Labor'' after ``in the Federal Register''; and
(3) by striking ``his reasons'' and inserting ``the
Secretary's reasons''.
SEC. 104. BENEFIT INFORMATION TO WORKERS.
Section 225(a) of the Trade Act of 1974 (19 U.S.C. 2275(a))
is amended in the fourth sentence by striking ``the State
Board for Vocational Education or equivalent agency and other
public or private agencies, institutions, and employers, as
appropriate,'' and inserting ``the appropriate State
workforce investment board (established under section 111 of
the Workforce Investment Act of 1998 (29 U.S.C. 2821)) and
State workforce agency responsible for the administration of
the State workforce investment program funded under title I
of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.)''.
SEC. 105. ADMINISTRATIVE RECONSIDERATION OF DETERMINATIONS BY
SECRETARY OF LABOR.
(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. ADMINISTRATIVE RECONSIDERATION OF DETERMINATIONS
BY SECRETARY OF LABOR.
``(a) Administrative Reconsideration.--
``(1) In general.--A worker, group of workers, certified or
recognized union or other duly authorized representative of
such worker or group of workers, or any of the individuals or
entities described in section 221(a)(1)(C), aggrieved (or on
behalf of such
[[Page H12295]]
workers aggrieved) by a determination of the Secretary of
Labor under section 223 denying a certification of
eligibility, may file a request for administrative
reconsideration with the Secretary not later than 60 days
after the date on which notice of the determination is
published under section 223.
``(2) Failure to make timely request.-- The failure to file
a request for administrative reconsideration of a
determination denying a certification of eligibility under
section 223 within the 60-day period described in paragraph
(1) shall be deemed to be a failure to exhaust administrative
remedies and such determination shall not be subject to
judicial review under section 284.
``(b) Notice, Review, and Final Determination.--
``(1) Notice.--If a request for administrative
reconsideration of a determination of the Secretary is filed
in accordance with the provisions of subsection (a), the
Secretary shall promptly publish notice thereof in the
Federal Register and on the Website of the Department of
Labor.
``(2) Review of determination.--The Secretary shall
initiate a review of the determination of the Secretary upon
filing of the request for administrative reconsideration
under subsection (a) and shall include an opportunity for
interested persons to submit additional information.
``(3) Final determination.--The Secretary shall issue a
final determination on the request for administrative
reconsideration not later than 60 days after the date on
which the Secretary publishes notice of the request for
reconsideration pursuant to paragraph (1). Upon reaching a
determination on a reconsideration, 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. The requirements relating to judicial review
under section 284 shall apply to any determination made by
the Secretary under this subsection.''.
(b) Clerical Amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by inserting after the
item relating to section 225 the following:
``Sec. 226. Administrative reconsideration of determinations by
Secretary of Labor.''.
Subtitle B--Program Benefits
CHAPTER 1--TRADE READJUSTMENT ALLOWANCES
SEC. 111. QUALIFYING REQUIREMENTS FOR WORKERS.
(a) Basic Trade Readjustment Allowance.--Subsection (a) of
section 231 of the Trade Act of 1974 (19 U.S.C. 2291) is
amended--
(1) in the matter preceding paragraph (1), by striking ``60
days'' and inserting ``40 days'';
(2) in paragraph (1), by striking ``occurred--'' and all
that follows and inserting ``occurred during the period
described in section 223(b).''; and
(3) by striking paragraphs (4) and (5).
(b) Payment of Additional Trade Readjustment Allowance.--
Such section is further amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by inserting after subsection (a) the following new
subsection:
``(b) In addition to the payment of a trade readjustment
allowance under subsection (a), payment of an additional
trade readjustment allowance shall be made to an adversely
affected worker who is covered by a certification under
subchapter A and who--
``(1) files an application for such allowance for any week
of unemployment which begins after the worker has received
the maximum amount of trade readjustment allowances payable
under subsection (a);
``(2) meets the conditions described in paragraphs (1)
through (3) of subsection (a); and
``(3) is either--
``(A) totally unemployed and is enrolled in a full-time
training program approved by the Secretary under section
236(a); or
``(B) partially unemployed and is enrolled in a full-time
or part-time training program approved by the Secretary under
section 236(a).''.
(c) Withholding of Trade Readjustment Allowance Pending
Beginning or Resumption of Participation in Training Program;
Period of Applicability.--Subsection (c) of such section (as
redesignated by subsection (b)(1) of this section) is amended
to read as follows:
``(c) If the Secretary determines that--
``(1) the adversely affected worker--
``(A) has failed to begin participation in the training
program the enrollment in which meets the requirement of
subsection (b)(3), or
``(B) has ceased to participate in such training program
before completing such training program, and
``(2) there is no justifiable cause for such failure or
cessation,
no trade readjustment allowance may be paid to the adversely
affected worker under this part for the week in which such
failure, cessation, or revocation occurred, or any succeeding
week, until the adversely affected worker begins or resumes
participation in a training program approved under section
236(a).''.
(d) Waivers of Training Requirements.--Subsection (d) of
such section (as redesignated by subsection (b)(1) of this
section) is hereby repealed.
SEC. 112. WEEKLY AMOUNTS.
(a) In General.--Subsection (a) of section 232 of the Trade
Act of 1974 (19 U.S.C. 2292) is amended--
(1) by striking ``(a)'' and inserting ``(a)(1)'';
(2) by inserting ``paragraph (2) and'' after ``Subject
to'';
(3) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively; and
(4) by adding at the end the following new paragraph:
``(2)(A) 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 be paid a trade readjustment allowance in the
amount described in subparagraph (B).
``(B) The trade readjustment allowance payable under
subparagraph (A) shall be equal to the weekly benefit amount
of the unemployment insurance upon which the worker's trade
readjustment allowance was initially determined under
paragraph (1), reduced by--
``(i) 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
subparagraph (A) of this paragraph; and
``(ii) the amounts described in subparagraphs (A) and (B)
of paragraph (1).''.
(b) Adversely Affected Workers Who Are Undergoing
Training.--Subsection (b) of such section is amended--
(1) by inserting ``under section 231(b)'' after ``who is
entitled to trade readjustment allowances''; and
(2) by striking ``he is undergoing any such'' and inserting
``such worker is undergoing''.
SEC. 113. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.
Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``The maximum amount'' and inserting
``Except as provided in paragraph (3), the maximum amount'';
and
(ii) by striking ``52'' and inserting ``39''; and
(B) in paragraph (3), by striking ``52'' each place it
appears and inserting ``65'';
(2) by striking subsection (b);
(3) by redesignating subsections (c) through (g) as
subsections (b) through (f), respectively; and
(4) in subsection (f) (as redesignated by paragraph (3) of
this section), by striking ``section 236(a)(5)(D)'' and
inserting ``section 236''.
CHAPTER 2--TRAINING, OTHER REEMPLOYMENT SERVICES, AND ALLOWANCES
SEC. 121. REEMPLOYMENT SERVICES.
(a) In General.--Section 235 of the Trade Act of 1974 (19
U.S.C. 2295) is amended--
(1) in the heading, by striking ``EMPLOYMENT'' and
inserting ``REEMPLOYMENT'';
(2) by striking ``The Secretary'' the first place it
appears and inserting ``(a) The Secretary'';
(3) by striking ``counseling, testing, and placement
services, and supportive and other services'' and inserting
``career counseling, testing and assessments, and job
placement services, and supportive and other services''; and
(4) by adding at the end the following new subsection:
``(b) In order to facilitate the provision of services
described in subsection (a), the Secretary shall ensure the
effective implementation of the requirements of section
239(e) relating to the co-enrollment of adversely affected
workers in the dislocated worker program authorized under
chapter 5 of subtitle B of title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2861 et seq.).''.
(b) Clerical Amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by striking the heading
relating to part II of subchapter B of chapter 2 of title II
of the Trade Act of 1974 and the item relating to section 235
of such Act and inserting the following:
``Part II--Training, Other Reemployment Services, and Allowances
``Sec. 235. Reemployment services.''.
SEC. 122. TRAINING.
(a) In General.--Section 236 of the Trade Act of 1974 (19
U.S.C. 2296) is amended to read as follows:
``SEC. 236. TRAINING.
``(a) Approval of Training.--
``(1) In general.--If the Secretary determines that an
adversely affected worker, including an adversely affected
worker who has obtained reemployment subsequent to separation
from the adversely affected employment, or an adversely
affected incumbent worker, meets the criteria described in
paragraph (2), and otherwise meets the requirements described
under this section, the Secretary shall approve the training
program requested by the worker. Upon such approval, the
worker shall be entitled to have payment of the costs of such
training (subject to the limitations imposed by this section)
paid on the worker's behalf by the Secretary directly or
through a voucher system.
[[Page H12296]]
The costs of such training shall include the costs of
tuition, books, required tools, and fees related to
education, licensing, or certification.
``(2) Criteria for approval of training program.--For
purposes of paragraph (1), training for an adversely affected
worker or an adversely affected incumbent worker, shall be
approved if the Secretary determines that--
``(A) the worker needs additional marketable skills to
obtain or retain employment comparable to the worker's
adversely affected employment;
``(B) there is a reasonable expectation of such employment
following the completion of the training; and
``(C) the worker is qualified to undertake and complete the
training sought.
``(3) Enrollment deadline.--
``(A) In general.--In order to receive assistance under
this section, a worker shall enroll in a training program
approved under paragraph (1) not later than the later of--
``(i) the last day of the 39th week after the worker's most
recent separation from adversely affected employment which
meets the requirements of paragraphs (1) and (2) of section
231(a); or
``(ii) the last day of the 13th week after the week in
which the Secretary issues a certification under subchapter A
covering such worker.
``(B) Extension for justifiable cause.--The Secretary may
grant an extension of the enrollment period described in
subparagraph (A) for a worker if the Secretary determines
that there is justifiable cause for such an extension.
``(b) Funding for Training.--
``(1) Annual limit on aggregate payments under program.--
``(A) In general.--The total amount of payments that may be
made under subsection (a)(1) for any fiscal year shall not
exceed $220,000,000.
``(B) Apportionment among states.--The Secretary shall
establish a method for apportioning among States the funds
that are available for training under this chapter in any
fiscal year. Such method may include the use of formula
allotments and reallotments, and the establishment of a
reserve that is used to assist in apportioning funds to those
States in need of additional funding during the fiscal year.
``(2) Limitations applicable to workers.--
``(A) Duration.--Subject to subparagraph (C), the costs of
a training program approved under subsection (a)(1) for an
adversely affected worker or an adversely affected incumbent
worker shall be paid under this section for a period not to
exceed four years from the date the worker first enrolled in
the training program. A worker may participate in such
training program during such period on a full-time or part-
time basis. During the period of participation the worker
shall make adequate yearly progress, as determined by the
Secretary, toward the attainment of a license, certificate,
or degree pursuant to such training program in order to
remain eligible for assistance under this section.
``(B) Amount.--Subject to subparagraph (C), the payments
for a training program under subsection (a)(1) for a worker
may not exceed $4,000 for any one-year period, or a total of
$8,000 over the maximum four-year period described in
subparagraph (A).
``(C) Exceptions.--
``(i) Literacy training and prerequisites.--If the
Secretary determines that an adversely affected worker or an
adversely affected incumbent worker needs literacy training,
English as a second language instruction, remedial education,
educational assistance to obtain a high school diploma or
General Equivalency Degree, or prerequisites in order to
participate in a training program for occupations in demand,
the Secretary shall approve the provision of such activities
and provide up to $1,000 in payments for such activities.
Such payments shall not be included for purposes of applying
the limits on payments described in subparagraph (B).
``(ii) On-the-job training.--The provisions of
subparagraphs (A) and (B) shall not be applicable to on-the-
job training programs, except as provided in subsection
(f)(2).
``(3) Duplicative payments prohibited.--No payment may be
made under subsection (a)(1) of the costs of training an
adversely affected worker or an adversely affected incumbent
worker if such costs are payable or have already been paid
under any other provision of Federal law.
``(4) Report.--
``(A) In general.--Not later than May 31 and November 30 of
each year, the Secretary shall submit to the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives a report on--
``(i) the initial allocation among States of funds for
training approved under this section;
``(ii) any additional distributions of funds for training
approved under this section during the two most recent fiscal
quarters and cumulatively during the fiscal year;
``(iii) the amount of funds obligated and expended by the
States to provide training approved under this section during
the two most recent fiscal quarters and cumulatively during
the fiscal year; and
``(iv) the efforts of the Department of Labor to ensure
that each State receives an appropriate level of funds during
the fiscal year to provide training approved under this
section to all eligible workers.
``(B) Definition.--In this paragraph, the term `fiscal
quarter' means any 3-month period beginning on October 1,
January 1, April 1, or July 1 of a fiscal year.
``(c) Training Programs That May Be Approved.--The training
programs that may be approved under subsection (a) include--
``(1) employer-based training, including--
``(A) on-the-job training;
``(B) customized training; and
``(C) apprenticeship programs registered under the National
Apprenticeship Act (29 U.S.C. 50 et seq.);
``(2) a training program that leads to a license,
certificate, or degree and is linked to occupations in
demand, which may include training provided in classroom,
distance learning, and technology-based learning;
``(3) a training program that has been determined by a
State to be eligible to receive payments under section 122 of
the Workforce Investment Act of 1998 (29 U.S.C. 2842);
``(4) a program of remedial education that will enable a
worker to obtain employment or to enroll in a training
program described in paragraph (2) or (3); and
``(5) a training program for which all, or any portion, of
the costs of training the worker are paid--
``(A) under any Federal or State program other than this
chapter; or
``(B) from any source other than this section.
``(d) Sharing of Costs.--
``(1) In general.--The Secretary is not required under
subsection (a) to pay the costs of any training approved
under such subsection to the extent that such costs are
paid--
``(A) under any Federal or State program other than this
chapter; or
``(B) from any source other than this section.
``(2) Cost-sharing agreement.--Before approving any
training to which paragraph (1) may apply, the Secretary may
require that the adversely affected worker or the adversely
affected incumbent worker enter into an agreement with the
Secretary under which the Secretary will not be required to
pay under this section the portion of the costs of such
training that the worker has reason to believe will be paid
under the program, or by the source, described in
subparagraph (A) or (B) of paragraph (1).
``(e) Supplemental Assistance.--
``(1) In general.--The Secretary may, where appropriate,
authorize supplemental assistance necessary to defray
reasonable transportation and subsistence expenses for
separate maintenance when training is provided in facilities
that are not within commuting distance of a worker's regular
place of residence.
``(2) Limitations.--The Secretary may not authorize--
``(A) payments for subsistence that exceed whichever is the
lesser of--
``(i) the actual per diem expenses for subsistence; or
``(ii) payments at 50 percent of the prevailing per diem
allowance rate authorized under the Federal travel
regulations; or
``(B) payments for travel expenses exceeding the prevailing
mileage rate authorized under the Federal travel regulations.
``(f) Payment of Costs of On-the-Job Training.--
``(1) In general.--The Secretary shall pay the costs of any
on-the-job training of an adversely affected worker that is
approved under subsection (a)(l), but the Secretary may pay
such costs, notwithstanding any other provision of this
section, only if--
``(A) no currently employed worker is displaced by such
adversely affected worker (including partial displacement
such as a reduction in the hours of nonovertime work, wages,
or employment benefits);
``(B) such training does not impair existing contracts for
services or collective bargaining agreements;
``(C) in the case of training which would be inconsistent
with the terms of a collective bargaining agreement, the
written concurrence of the labor organization concerned has
been obtained;
``(D) no other individual is on layoff from the same, or
any substantially equivalent, job for which such adversely
affected worker is being trained;
``(E) the employer has not terminated the employment of any
regular employee or otherwise reduced the work force of the
employer with the intention of filling the vacancy so created
by hiring such adversely affected worker;
``(F) the job for which such adversely affected worker is
being trained is not being created in a promotional line that
will infringe in any way upon the promotional opportunities
of currently employed individuals;
``(G) such training is not for the same occupation from
which the worker was separated and with respect to which such
worker's group was certified pursuant to section 222;
``(H) the employer is provided reimbursement of not more
than 50 percent of the wage rate of the participant, for the
cost of providing the training and additional supervision
related to the training;
``(I) the duration of such training does not exceed 1 year;
and
``(J) the employer has not received payment under
subsection (a)(1) with respect to any other on-the-job
training provided by such employer which failed to meet the
requirements of subparagraphs (A), (B), (C), (D), (E), and
(F).
``(2) Supplementary training.--An on-the-job training
program approved under this
[[Page H12297]]
section may include, as a component of such program, the
provision of training with a provider other than the employer
that is not provided on-the-job and is designed to enhance
the occupational skills of the worker. The costs of such
training shall be subject to the limitation described in
subsection (b)(2)(B).
``(g) Effect of Approved Training on Eligibility for
Unemployment Compensation.--A worker may not be determined to
be ineligible or disqualified for unemployment insurance or
program benefits under this subchapter because the individual
is in training approved under subsection (a), because of
leaving work which is not comparable employment to enter such
training, or because of the application to any such week in
training of provisions of State law or Federal unemployment
insurance law relating to availability for work, active
search for work, or refusal to accept work.
``(h) Definition.--In this section, the term `customized
training' means training that is--
``(1) designed to meet the special requirements of an
employer or group of employers;
``(2) conducted with a commitment by the employer or group
of employers to employ an individual upon successful
completion of the training; and
``(3) for which the employer pays for a significant portion
of the cost of such training, as determined by the
Secretary.''.
(b) Conforming Amendments.--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--
(1) in section 237(b)(2), by striking ``section 236(b)(1)
and (2)'' and inserting ``section 236''; and
(2) in subsections (b)(1) and (c)(2) of section 238, by
striking ``section 236(b)(1) and (2)'' each place it appears
and inserting ``section 236''.
SEC. 123. JOB SEARCH ALLOWANCES.
Section 237(a)(2) of the Trade Act of 1974 (19 U.S.C.
2297(a)(2)) is amended--
(1) in subparagraph (B), by striking ``suitable'' and
inserting ``comparable''; and
(2) in subparagraph (C)(ii), by striking ``, unless the
worker received a waiver under section 231(c)''.
SEC. 124. RELOCATION ALLOWANCES.
Section 238(a)(2) of the Trade Act of 1974 (19 U.S.C.
2298(a)(2)) is amended--
(1) in subparagraph (B), by striking ``suitable'' and
inserting ``comparable'';
(2) in subparagraph (D)--
(A) in the heading, by striking ``suitable'' and inserting
``out-of-area''; and
(B) in clause (i) to read as follows:
``(i) has obtained employment affording a reasonable
expectation of long-term duration in the area in which the
worker wishes to relocate and which provides wages that are
substantially greater than the wages for the employment that
is likely to be available to the worker in the area from
which the worker would be relocating; and''; and
(3) in subparagraph (E)(ii), by striking ``, unless the
worker received a waiver under section 231(c)''.
Subtitle C--General Provisions
SEC. 131. 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) in the matter preceding clause (1), by striking ``any
State agency'' and inserting ``a State agency'';
(2) in clause (2), to read as follows: ``(2) in accordance
with subsections (e) and (f), will afford adversely affected
workers testing and assessments, career counseling, referral
to training and job search programs, and job placement
services, and'';
(3) by striking clause (3); and
(4) by redesignating clause (4) as clause (3).
(b) Administration.--Subsection (e) of such section is
amended--
(1) in the first sentence, to read as follows: ``Any
agreement entered into under this section shall provide for
the administration of the provision for reemployment
services, training, and supplemental assistance under
sections 235 and 236 of this Act by the same State agency
responsible for the administration of the State workforce
investment program funded under title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.) and shall
include such terms and conditions as are established by the
Secretary in consultation with the States and set forth in
such agreement.'';
(2) in the second sentence, by striking ``Any agency'' and
inserting ``The agency''; and
(3) by adding at the end the following new sentence: ``The
terms and conditions set forth in the agreement shall include
at a minimum that--
``(1) adversely affected workers applying for assistance
under this chapter shall be co-enrolled in the dislocated
worker program authorized under chapter 5 of subtitle B of
title I of the Workforce Investment Act of 1998 (29 U.S.C.
2861 et seq.); and
``(2) the services provided under this chapter shall be
administered through the one-stop delivery system established
under title I of such Act (29 U.S.C. 2801 et seq.).''.
(c) Cooperating State Agency.--Subsection (f) of such
section is amended--
(1) in paragraph (2), by adding ``and'' at the end;
(2) by striking paragraph (3);
(3) by redesignating paragraph (4) as paragraph (3); and
(4) in paragraph (3) (as redesignated by paragraph (3) of
this subsection), by striking ``suitable''.
(d) Performance Accountability.--Such section is further
amended by adding at the end the following new subsection:
``(h) Performance Accountability.--
``(1) In general.--Any agreement entered into under this
section shall include performance measures that the
cooperating State or State agency is expected to achieve with
respect to the program carried out under this chapter. The
performance measures shall consist of indicators of
performance and levels of performance applicable to each
indicator.
``(2) Indicators of performance.--The indicators of
performance shall be--
``(A) entry into employment;
``(B) retention in employment;
``(C) average earnings; and
``(D) such other indicators as the Secretary determines are
appropriate.
``(3) Levels of performance.--The levels of performance for
each State for the indicators of performance described in
paragraph (2) shall be determined by the Secretary, after
consultation with the State.
``(4) Performance reporting.--Any agreement shall also
include a requirement that the State annually report to the
Secretary the level of performance achieved with respect to
each indicator under the program carried out under this
chapter in the preceding fiscal year, and the State shall
submit such additional reports regarding the performance of
programs as the Secretary may require. The Secretary shall
make the information contained in the annual reports
available to the general public through publication on the
Website of the Department of Labor and other appropriate
methods and shall provide copies of the reports to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate. The Secretary
shall also publish on the Website of the Department of Labor
a list identifying those States that fail to submit reports
to the Secretary on a timely basis or fail to submit accurate
reports.''.
SEC. 132. AUTHORIZATION OF APPROPRIATIONS; INCENTIVE PAYMENTS
TO STATES.
(a) In General.--Subsection (a) of section 245 of the Trade
Act of 1974 (19 U.S.C. 2317) is amended by striking
``December 31, 2007'' and inserting ``September 30, 2012''.
(b) Incentive Payments to States.--Such section is further
amended by adding at the end the following new subsection:
``(c) Incentive Payments to States.--If, in the last
quarter of any fiscal year, the Secretary determines that the
amount of funds needed to make payments for the costs of
training under this chapter for such fiscal year will not
reach the amount of the limitation described in section
236(b)(1)(A) and funds appropriated to make payments for the
costs of such training remain available for obligation, the
Secretary may use not more than an amount equal to five
percent of the amount of the limitation described in such
section 236(b)(1)(A) to award funds to States that the
Secretary determines have demonstrated exemplary performance
in carrying out the program under this chapter with respect
to exceeding the performance levels established pursuant to
section 239(h) and with respect to such other factors as the
Secretary determines appropriate. Such funds shall be
available to the States for the purpose of enhancing the
administration of the program which may include improvements
to management information systems, targeted outreach, staff
training, and enhanced services to participants.''.
(c) Conforming and Clerical Amendments.--
(1) Conforming amendment.--Such section is further amended
in the heading by inserting before the period at the end the
following: ``; INCENTIVE PAYMENTS TO STATES''.
(2) Clerical amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by striking the item
relating to section 245 and inserting the following:
``Sec. 245. Authorization of appropriations; incentive payments to
States.''.
SEC. 133. PHASE-OUT OF DEMONSTRATION PROJECT FOR ALTERNATIVE
TRADE ADJUSTMENT ASSISTANCE FOR OLDER WORKERS.
Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C.
2318(b)(1)) is amended by striking ``the date that is 5 years
after the date under which such program is implemented by the
State'' and inserting ``September 30, 2008''.
SEC. 134. WAGE SUPPLEMENT PROGRAM.
(a) In General.--Chapter 2 of title II of the Trade Act of
1974 (19 U.S.C. 2271 et seq.) is amended by inserting after
section 246 the following new section:
``SEC. 246A. WAGE SUPPLEMENT PROGRAM.
``(a) Establishment.--Beginning on October 1, 2008, the
Secretary shall establish a program to provide the benefits
described in subsection (b) to an adversely affected worker
who meets the eligibility criteria described in subsection
(c), including the requirement that such worker be employed
for the minimum number of hours per week described in
subsection (c)(3).
``(b) Benefits.--
``(1) Amount of payments.--A State shall use the funds
provided to the State under section 241 to pay an hourly wage
supplement to an eligible adversely affected worker for a
period not to exceed 2 years, in an amount equal to the
difference, if any (but not less than zero) resulting from
subtracting the amount described in paragraph (2)(B) from the
amount described in paragraph (2)(A).
[[Page H12298]]
``(2) Factors.--(A) For purposes of paragraph (1), the
amount described in this subparagraph is the sum of--
``(i) whichever is the highest of--
``(I) the hourly minimum wage that is applicable to a
worker under the Fair Labor Standards Act of 1938 (29 U.S.C.
201 et seq.), or if such worker is exempt under section 13 of
such Act (29 U.S.C. 213), the hourly minimum wage that would
be applicable if section 6(a)(1) of such Act (29 U.S.C.
206(a)(1)) were applied; or
``(II) the applicable State or local hourly minimum wage;
and
``(ii) $2.40.
``(B) For purposes of paragraph (1), the amount described
in this subparagraph is the hourly wage actually paid to such
worker.
``(3) Health insurance eligibility.--A worker described in
subsection (c) who is participating in the program
established under subsection (a) is eligible to receive, for
a period not to exceed 2 years, a credit for health insurance
costs to the extent provided under section 35 of the Internal
Revenue Code of 1986.
``(c) Eligibility for Wage Supplement.--A worker in a group
that the Secretary has certified as eligible to apply for
adjustment assistance under section 223 may elect to receive
the benefits described in subsection (b) if such worker--
``(1) is covered by a certification under subchapter A of
this chapter;
``(2) meets the requirements of paragraphs (1) and (2) of
section 231(a));
``(3) is employed for an average of at least 30 hours per
week, which may include employment as part of an
apprenticeship program registered under the National
Apprenticeship Act (20 U.S.C. 50 et seq.);
``(4) does not return to the employment from which the
worker was separated; and
``(5) has not received any payments under section 246 while
covered under the same certification as described in
paragraph (1).
``(d) Effect on Other Benefits.--A worker receiving
payments under this section shall not be eligible to receive
other benefits under this chapter except for training
assistance provided under section 236 (provided that such
worker otherwise meets the requirements of section 236) or
the assistance described in subsection (b)(3). A worker may
receive payments under this section during breaks in training
that exceed the period described in section 233(e) if the
worker otherwise meets the requirements of this section.''.
(b) Clerical Amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by inserting after the
item relating to section 246 the following:
``Sec. 246A. Wage supplement program.''.
SEC. 135. DEFINITIONS.
Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is
amended by adding at the end the following new paragraphs:
``(18) The term `comparable employment' means, with respect
to a worker, work of a substantially equal or higher skill
level than the worker's past adversely affected employment,
and wages for such work at not less than 80 percent of the
worker's average weekly wage.
``(19) The term `adversely affected incumbent worker' means
a worker who is a member of a group of workers who have been
certified as eligible to apply for adjustment assistance
under subchapter A and who has not been separated from
adversely affected employment.''.
SEC. 136. CAPACITY-BUILDING GRANTS TO ENHANCE TRAINING FOR
WORKERS.
(a) In General.--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. 250. CAPACITY-BUILDING GRANTS TO ENHANCE TRAINING FOR
WORKERS.
``(a) In General.--The Secretary may award grants to
eligible entities described in subsection (b) to temporarily
increase the capacity of such entities, through the
activities authorized under subsection (c), to provide
training to workers as provided for in section 236.
``(b) Eligible Entities.--An eligible entity referred to in
subsection (a) is--
``(1) a community college (as such term is defined in
section 202(a)(2) of the Carl D. Perkins Vocational and
Applied Technology Education Amendments of 1998 (20 U.S.C.
2371(a)(2)) that provides training for occupations in demand;
or
``(2) a provider of training for occupations in demand that
is eligible to receive funds under section 122 of the
Workforce Investment Act of 1998 (29 U.S.C. 2842).
``(c) Authorized Activities.--An eligible entity that is
awarded a grant under this section shall utilize funds under
the grant to expand available training slots and prepare
adversely affected workers and adversely affected incumbent
workers under this chapter for occupations in demand by
conducting such activities as the Secretary may authorize,
including--
``(1) the development of education and training curricula,
which may be developed in consultation with employers of
incumbent workers, local workforce investment boards (as
defined in section 117 of the Workforce Investment Act of
1998 (29 U.S.C. 2832)), labor organizations that represent
individuals currently employed in occupations in demand for
the local area, regional economic development agencies, one-
stop operators (as defined in section 101(29) of such Act (29
U.S.C. 2801(29)), community-based organizations, or any other
public or private entity that is likely to employ or
facilitate the employment of adversely affected workers in
occupations in demand;
``(2) the hiring of additional faculty and staff;
``(3) the acquisition of new equipment or the upgrading of
existing equipment, which shall be necessary to facilitate
the teaching of job skills to adversely affected workers and
adversely affected incumbent workers; and
``(4) the development of a program to provide on-the-job
training experiences for adversely affected workers in
coordination with local employers that have committed to
employ adversely affected workers following successful
completion of the program.
``(d) Application.--
``(1) Requests for applications.--
``(A) By the secretary.--In each fiscal year, and at such
times as the Secretary may determine, the Secretary may
request applications from eligible entities to carry out
activities authorized under this section.
``(B) By an eligible entity.--At any time, and in such form
and manner as the Secretary may prescribe, an eligible entity
may recommend that the Secretary initiate a request for
capacity building grant applications if the eligible entity
believes that there has been or will be a sudden and
significant shortage of training slots available to adversely
affected workers and adversely affected incumbent workers in
a local area.
``(2) Information required for application.--To be eligible
to receive a grant under this section, an applicant shall
provide to the Secretary the following information in the
application:
``(A) A description of the factors in a local area that
have resulted or may result in a significant increase in
demand for training slots by adversely affected workers and
adversely affected incumbent workers, which may include--
``(i) mass layoffs at firms that are believed to employ a
large number of adversely affected workers;
``(ii) imminent closure or relocation of facilities that
are believed to employ a large number of adversely affected
workers; and
``(iii) prevailing labor market conditions that may have an
immediate, measurable adverse employment impact on the
employment of adversely affected workers.
``(B) A description of the number of training slots
currently available to adversely affected workers and
adversely affected incumbent workers, and the number of
proposed additional slots to be made available using funds
under the grant.
``(C) A description of the potential number of adversely
affected workers and adversely affected incumbent workers in
the local area who would be able to access increased training
slots.
``(D) A description of the commitment made by local
employers, labor organizations, and other public or private
organizations to assist in the development of training and
related curricula for the benefit of adversely affected
workers and adversely affected incumbent workers.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$50,000,000 for each of fiscal years 2008 through 2012.''.
(b) Clerical Amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by inserting after the
item relating to section 249 the following:
``Sec. 250. Capacity-building grants to enhance training for
workers.''.
Subtitle D--Effective Date
SEC. 141. EFFECTIVE DATE.
The amendments made by this title shall take effect
beginning 90 days after the date of the enactment of this
Act.
TITLE II--OTHER TRADE ADJUSTMENT ASSISTANCE PROGRAMS AND RELATED
PROVISIONS
SEC. 201. TECHNICAL ASSISTANCE FOR FIRMS.
Section 253 of the Trade Act of 1974 (19 U.S.C. 2343) is
amended by adding at the end the following new subsections:
``(c)(1) Any grant made under subsection (b)(3) shall
include performance measures that an intermediary
organization is expected to achieve with respect to the
program carried out under this chapter. The performance
measures shall consist of indicators of performance described
in paragraph (2) and levels of performance described in
paragraph (3) applicable to each such indicator of
performance.
``(2) The indicators of performance referred to in
paragraph (1) are the following:
``(A) The extent to which outreach efforts effectively
apprise import-impacted firms likely to benefit from the
program about resources available under the program.
``(B) The extent to which firms receiving adjustment
assistance under section 252 meet or exceed targets to retain
or create employment.
``(C) The percentage of workers totally or partially
separated from employment that have returned to work or
returned to their previous level of employment.
``(D) The extent to which firms receiving adjustment
assistance under section 252 meet or exceed targets for
maintaining or increasing sales or production.
``(E) Such other indicators of performance as the Secretary
may determine are appropriate.
``(3) The levels of performance referred to in paragraph
(1) shall be determined by the
[[Page H12299]]
Secretary, after consultation with the intermediary
organization. In reviewing an intermediary organization's
levels of performance, the Secretary shall take into
consideration economic conditions affecting the region served
by the organization that may affect that performance.
``(4)(A) Any grant made under subsection (b)(3) shall also
include a requirement that the intermediary organization
submit to the Secretary a report on an annual basis on the
levels of performance achieved with respect to each indicator
of performance under the program carried out under this
chapter in the preceding fiscal year, and such additional
reports regarding such indicators of performance as the
Secretary may require.
``(B) The Secretary shall make the information contained in
the reports described in subparagraph (A) available to the
general public through publication on the Website of the
Economic Development Administration and other appropriate
methods. The Secretary shall provide copies of the reports
described in subparagraph (A) to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate.
``(C) The Secretary shall also publish on the Website of
the Economic Development Administration a list that
identifies those intermediary organizations that fail to
submit reports to the Secretary in accordance with
subparagraph (A) on a timely basis or fail to submit accurate
reports to the Secretary in accordance with subparagraph (A).
``(d) At least once every three years, the Secretary shall
provide for an independent evaluation of each intermediary
organization receiving assistance under this section to
assess the intermediary organization's performance and
contribution toward retention and creation of employment. The
purpose of the evaluations shall be to determine which
intermediary organizations are performing well and merit
continued assistance under this section and which
intermediary organizations should not receive continued
assistance under this section, so that other universities and
intermediary organizations that have not previously received
assistance under this section may participate in the program
carried out under this chapter.''.
SEC. 202. EXTENSION 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'' and inserting
``$4,000,000''; and
(2) by inserting after ``October 1, 2007,'' the following:
``$15,000,000 for the 9-month period beginning on January 1,
2008, and $19,000,000 for each of the fiscal years 2009
through 2012,''.
SEC. 203. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE 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 new
sentence: ``There are authorized to be appropriated to the
Department of Agriculture to carry out this chapter
$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.''.
SEC. 204. JUDICIAL REVIEW.
(a) In General.--Section 284(a) of the Trade Act of 1974
(19 U.S.C. 2395(a)) is amended in the first sentence--
(1) by striking ``or authorized representative'' and
inserting ``or other duly authorized representative'';
(2) by striking ``aggrieved'' and inserting ``, or any of
the individuals or entities described in section
221(a)(1)(C), aggrieved (or on behalf of such workers
aggrieved)''; and
(3) by striking ``section 223'' and inserting ``section
226''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect beginning 90 days after the date of the
enactment of this Act.
SEC. 205. 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''.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. CREDIT REDUCTION FOR FAILURES RELATING TO CO-
ENROLLMENT OF PARTICIPANTS AND PROGRAM
PERFORMANCE REPORTS.
(a) In General.--Paragraph (3) of section 3302(c) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``(3) If'' and inserting ``(3) (A) Except
as provided in subparagraph (B), if'',
(2) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and
(3) by adding at the end the following new subparagraph:
``(B) If the Secretary of Labor determines that a State, or
State agency, failed to meet the requirements of subsections
(e)(1) (relating to the co-enrollment of participants) or
(h)(3) (relating to the submission of reports on program
performance) of section 239 of the Trade Act of 1974, the
Secretary of Labor may direct that, in the case of a taxpayer
subject to the unemployment compensation law of such State,
the total credits (after applying subsections (a) and (b) and
paragraphs (1) and (2) of this section) otherwise allowable
under this section for a year during which such State or
agency fails to meet those requirements shall (in lieu of
reduction under subparagraph (A)) be reduced by 3 percent of
the tax imposed with respect to wages paid by such taxpayer
during such year which are attributable to such State.''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to taxable years beginning after
September 30, 2008.
SEC. 302. TAA WAGE SUPPLEMENT PARTICIPANTS ELIGIBILITY FOR
CREDIT FOR HEALTH INSURANCE COSTS.
(a) Eligibility.--Paragraph (1) of section 35(c) of the
Internal Revenue Code of 1986 is amended by striking ``and''
at the end of subparagraph (B), by striking the period at the
end of subparagraph (C) and inserting ``, and'' , and by
adding after subparagraph (C) the following:
``(D) an eligible TAA wage supplement recipient.''.
(b) Eligible TAA Wage Supplement Recipient Defined.--
Subsection (c) of section 35 of such Code is amended by
adding after paragraph (4) the following:
``(5) Eligible taa wage supplement recipient.--The term
`eligible TAA wage supplement recipient' means, with respect
to any month, any individual who--
``(A) is a worker described in section 246A(c) of the Trade
Act of 1974 who is participating in the wage supplement
program established under section 246A(a) of such Act, and
``(B) is receiving a benefit for such month under section
246A(b) of such Act.
An individual shall continue to be treated as an eligible TAA
wage supplement recipient during the first month that such
individual would otherwise cease to be an eligible TAA wage
supplement recipient by reason of the preceding sentence.''.
(c) Qualified Health Insurance.--Subparagraph (J) of
section 35(e)(1) of such Code is amended by striking ``or''
at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting ``, or'' , and by inserting
after clause (iii) the following:
``(iv) in the case of an eligible TAA wage supplement
recipient, the benefit described in subsection (c)(5)(B).''.
(d) Subsidized Coverage.--Subparagraph (B) of section
35(f)(1) of such Code is amended--
(1) by inserting ``or an eligible TAA wage supplement
recipient'' after ``eligible alternative TAA recipient'' in
the matter preceding clause (i), and
(2) by inserting ``or eligible taa wage supplement
recipients'' after ``eligible alternative taa recipients'' in
the heading.
(e) Advance Payment of HCTC.--Paragraph (1) of section
7527(d) of such Code is amended by striking ``or an eligible
alternative TAA recipient (as defined in section 35(c)(3))''
and inserting ``, an eligible alternative TAA recipient (as
defined in section 35(c)(3)), or an eligible TAA wage
supplement recipient (as defined in section 35(c)(5))''.
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 303. SPECIAL ALLOCATION UNDER NEW MARKETS TAX CREDIT IN
CONNECTION WITH TRADE ADJUSTMENT ASSISTANCE.
(a) In General.--Section 45D of the Internal Revenue Code
of 1986 is amended by redesignating subsection (i) as
subsection (j) and by inserting after subsection (h) the
following new subsection:
``(i) Special Allocations in Connection With Trade
Adjustment Assistance.--
``(1) Allocations.--The new markets tax credit limitation
otherwise determined under subsection (f)(1) shall be
increased by an amount equal to $500,000,000 for 2008 to be
allocated among qualified community development entities to
make capital or equity investments in, or loans to, qualified
TAA businesses.
``(2) Restriction on designation.--A qualified community
development entity receiving an allocation under paragraph
(1) may not use such allocation to designate any qualified
equity investment under subsection (b)(1)(C) unless
substantially all of such investment is used for the purpose
described in paragraph (1).
``(3) Qualified taa businesses.--For purposes of this
subsection--
``(A) In general.--The term `qualified TAA business' means,
with respect to any taxable year--
``(i) any qualified active low-income community business
(as defined in subsection (d)(2)) which meets the
requirements of clause (i) or (ii) of subparagraph (B) for
such taxable year, and
``(ii) any specified TAA business.
``(B) Specified taa business.--The term `specified TAA
business' means, with respect to any taxable year, any
corporation (including a nonprofit corporation) or
partnership if--
``(i) not less than 40 percent of the individuals hired by
such entity during such taxable year were eligible TAA
recipients (as defined in section 35(c)(2)) or eligible
alternative TAA recipients (as defined in section 35(c)(3))
with respect to any month beginning during the 1-year period
ending on the hiring date (as defined in section 51(d)) of
such individual,
``(ii) such entity is certified by the Secretary of
Commerce as eligible to apply for adjustment assistance under
chapter 3 of title II of the Trade Act of 1974 with respect
to any portion of the taxable year in which the investment or
loan referred to in paragraph (1) is made, and
``(iii) the Secretary determines that such entity will
utilize the assistance provided pursuant to this section in a
manner consistent with the purposes of subsection (d)(2)(A).
The requirement of clause (i) shall be treated as satisfied
for any taxable year if such clause would be satisfied if all
individuals
[[Page H12300]]
hired by such entity during such taxable year and all
preceding taxable years which are not before the taxable year
in which the investment or loan referred to in paragraph (1)
was made were taken into account.
``(4) Reallocations.--Subsection (f)(3) shall be applied
separately with respect to the amount of the increase under
paragraph (1).''.
(b) Effective Date.--The amendments made by this section
shall apply to allocations made after December 31, 2007.
SEC. 304. EXPEDITED REEMPLOYMENT DEMONSTRATION PROJECTS.
Title III of the Social Security Act (42 U.S.C. 501 and
following) is amended by adding at the end the following:
``DEMONSTRATION PROJECTS
``Sec. 305. (a) The Secretary of Labor may enter into
agreements, with States submitting an application described
in subsection (b), for the purpose of allowing such States to
conduct demonstration projects to test and evaluate measures
designed--
``(1) to expedite, such as through the use of a wage
insurance program, the reemployment of individuals who
establish initial eligibility for unemployment compensation
under the State law of such State; or
``(2) to improve the effectiveness of such State in
carrying out its State law.
``(b) The Governor of any State desiring to conduct a
demonstration project under this section shall submit an
application to the Secretary of Labor at such time, in such
manner, and including such information as the Secretary of
Labor may require. Any such application shall, at a minimum,
include--
``(1) a general description of the proposed demonstration
project, including the authority (under the laws of the
State) for the measures to be tested, as well as the period
of time during which such demonstration project would be
conducted;
``(2) if a waiver under subsection (c) is requested, the
specific aspects of the project to which the waiver would
apply and the reasons why such waiver is needed;
``(3) a description of the goals and the expected
programmatic outcomes of the demonstration project, including
how the project would contribute to the objective described
in subsection (a)(1), subsection (a)(2), or both;
``(4) assurances (accompanied by supporting analysis) that
the demonstration project would not result in any increased
net costs to the State's account in the Unemployment Trust
Fund;
``(5) a description of the manner in which the State--
``(A) will conduct an impact evaluation, using a control or
comparison group or other valid methodology, of the
demonstration project; and
``(B) will determine the extent to which the goals and
outcomes described in paragraph (3) were achieved; and
``(6) assurances that the State will provide any reports
relating to the demonstration project, after its approval, as
the Secretary of Labor may require.
``(c) The Secretary of Labor may waive any of the
requirements of section 3304(a)(4) of the Internal Revenue
Code of 1986 or of paragraph (1) or (5) of section 303(a), to
the extent and for the period the Secretary of Labor
considers necessary to enable the State to carry out a
demonstration project under this section.
``(d) A demonstration project under this section--
``(1) may be commenced any time after September 30, 2007;
and
``(2) may not, under subsection (b), be approved for a
period of time greater than 2 years, subject to extension
upon request of the Governor of the State involved for such
additional period as the Secretary of Labor may agree to,
except that in no event may a demonstration project under
this section be conducted after the end of the 5-year period
beginning on the date of the enactment of this section.
``(e) The Secretary of Labor shall, in the case of any
State for which an application is submitted under subsection
(b)--
``(1) notify the State as to whether such application has
been approved or denied within 90 days after receipt of a
complete application, and
``(2) provide public notice of the decision within 10 days
after providing notification to the State in accordance with
paragraph (1).
Public notice under paragraph (2) may be provided through the
Internet or other appropriate means. Any application under
this section that has not been approved within such 90 days
shall be treated as denied.
``(f) The Secretary of Labor may terminate a demonstration
project under this section if the Secretary determines that
the State has not complied with the terms and conditions of
the project.''.
SEC. 305. INCREASE IN PERCENTAGE OF TAA AND PBGC HEALTH
INSURANCE TAX CREDIT.
(a) In General.--Subsection (a) of section 35 of the
Internal Revenue Code of 1986 is amended by striking ``65
percent'' and inserting ``70 percent''.
(b) Conforming Amendment.--Subsection (b) of section 7527
of such Code is amended by striking ``65 percent'' and
inserting ``70 percent''.
(c) Effective Date.--The amendments made by this section
shall apply to months beginning after December 31, 2007, in
taxable years ending after such date.
SEC. 306. COLLECTION OF UNEMPLOYMENT COMPENSATION DEBTS.
(a) In General.--Section 6402 of the Internal Revenue Code
(relating to authority to make credits or refunds) is amended
by redesignating subsections (f) through (k) as subsections
(g) through (l), respectively, and by inserting after
subsection (e) the following new subsection:
``(f) Collection of Unemployment Compensation Debts.--
``(1) In general.--Upon receiving notice from any State
that a named person owes a covered unemployment compensation
debt to such State, the Secretary shall, under such
conditions as may be prescribed by the Secretary--
``(A) reduce the amount of any overpayment payable to such
person by the amount of such covered unemployment
compensation debt;
``(B) pay the amount by which such overpayment is reduced
under subparagraph (A) to such State and notify such State of
such person's name, taxpayer identification number, address,
and the amount collected; and
``(C) notify the person making such overpayment that the
overpayment has been reduced by an amount necessary to
satisfy a covered unemployment compensation debt.
If an offset is made pursuant to a joint return, the notice
under subparagraph (B) shall include the names, taxpayer
identification numbers, and addresses of each person filing
such return and the notice under subparagraph (C) shall
include information related to the rights of a spouse of a
person subject to such an offset.
``(2) Priorities for offset.--Any overpayment by a person
shall be reduced pursuant to this subsection--
``(A) after such overpayment is reduced pursuant to--
``(i) subsection (a) with respect to any liability for any
internal revenue tax on the part of the person who made the
overpayment;
``(ii) subsection (c) with respect to past-due support; and
``(iii) subsection (d) with respect to any past-due,
legally enforceable debt owed to a Federal agency; and
``(B) before such overpayment is credited to the future
liability for any Federal internal revenue tax of such person
pursuant to subsection (b).
If the Secretary receives notice from a State or States of
more than one debt subject to paragraph (1) or subsection (e)
that is owed by a person to such State or States, any
overpayment by such person shall be applied against such
debts in the order in which such debts accrued.
``(3) Notice; consideration of evidence.--No State may take
action under this subsection until such State--
``(A) notifies the person owing the covered unemployment
compensation debt that the State proposes to take action
pursuant to this section;
``(B) provides such person at least 60 days to present
evidence that all or part of such liability is not legally
enforceable;
``(C) considers any evidence presented by such person and
determines that an amount of such debt is legally
enforceable; and
``(D) satisfies such other conditions as the Secretary may
prescribe to ensure that the determination made under
subparagraph (C) is valid and that the State has made
reasonable efforts to obtain payment of such covered
unemployment compensation debt.
``(4) Covered unemployment compensation debt.--For purposes
of this subsection, the term `covered unemployment
compensation debt' means--
``(A) a past-due debt for erroneous payment of unemployment
compensation which has become final under the law of a State
certified by the Secretary of Labor pursuant to section 3304
and which remains uncollected;
``(B) contributions due to the unemployment fund of a State
for which the State has determined the person to be liable;
and
``(C) any penalties and interest assessed on such debt.
``(5) Regulations.--
``(A) In general.--The Secretary may issue regulations
prescribing the time and manner in which States must submit
notices of covered unemployment compensation debt and the
necessary information that must be contained in or accompany
such notices. The regulations may specify the minimum amount
of debt to which the reduction procedure established by
paragraph (1) may be applied.
``(B) Fee payable to secretary.--The regulations may
require States to pay a fee to the Secretary, which may be
deducted from amounts collected, to reimburse the Secretary
for the cost of applying such procedure. Any fee paid to the
Secretary pursuant to the preceding sentence shall be used to
reimburse appropriations which bore all or part of the cost
of applying such procedure.
``(C) Submission of notices through secretary of labor.--
The regulations may include a requirement that States submit
notices of covered unemployment compensation debt to the
Secretary via the Secretary of Labor in accordance with
procedures established by the Secretary of Labor. Such
procedures may require States to pay a fee to the Secretary
of Labor to reimburse the Secretary of Labor for the costs of
applying this subsection. Any such fee shall be established
in consultation with the Secretary of the Treasury. Any fee
paid to the Secretary of Labor may be deducted from amounts
collected and shall be used to reimburse the appropriation
account which bore all or part of the cost of applying this
subsection.
[[Page H12301]]
``(6) Erroneous payment to state.--Any State receiving
notice from the Secretary that an erroneous payment has been
made to such State under paragraph (1) shall pay promptly to
the Secretary, in accordance with such regulations as the
Secretary may prescribe, an amount equal to the amount of
such erroneous payment (without regard to whether any other
amounts payable to such State under such paragraph have been
paid to such State).''.
(b) Disclosure of Certain Information to States Requesting
Refund Offsets for Legally Enforceable State Unemployment
Compensation Debt.--
(1) General rule.--Paragraph (3) of section 6103(a) of such
Code is amended by inserting ``(10),'' after ``(6),''.
(2) Disclosure to department of labor and its agent.--
Paragraph (10) of section 6103(l) of such Code is amended--
(A) by striking ``(c), (d), or (e)'' each place it appears
in the heading and text and inserting ``(c), (d), (e), or
(f)'',
(B) in subparagraph (A) by inserting ``, to officers and
employees of the Department of Labor and its agent for
purposes of facilitating the exchange of data in connection
with a request made under subsection (f)(5) of section
6402,'' after ``section 6402'', and
(C) in subparagraph (B) by inserting ``, and any agents of
the Department of Labor,'' after ``agency'' the first place
it appears.
(3) Safeguards.--Paragraph (4) of section 6103(p) of such
Code is amended--
(A) in the matter preceding subparagraph (A), by striking
``(l)(16),'' and inserting ``(l)(10), (16),'';
(B) in subparagraph (F)(i), by striking ``(l)(16),'' and
inserting ``(l)(10), (16),''; and
(C) In the matter following subparagraph (f)(iii)--
(i) in each of the first two places it appears, by striking
``(l)(16),'' and inserting ``(l)(10), (16),'';
(ii) by inserting ``(10),'' after ``paragraph (6)(A),'';
and
(iii) in each of the last two places it appears, by
striking ``(l)(16)'' and inserting ``(l)(10) or (16)''.
(c) Expenditures From State Fund.--Section 3304(a)(4) of
such Code is amended--
(1) in subparagraph (E), by striking ``and'' after the
semicolon;
(2) in subparagraph (F), by inserting ``and'' after the
semicolon; and
(3) by adding at the end the following new subparagraph:
``(G) With respect to amounts of covered unemployment
compensation debt (as defined in section 6402(f)(4))
collected under section 6402(f).--
``(i) amounts may be deducted to pay any fees authorized
under such section; and
``(ii) the penalties and interest described in section
6402(f)(4)(B) may be transferred to the appropriate State
fund into which the State would have deposited such amounts
had the person owing the debt paid such amounts directly to
the State;''.
(d) Conforming Amendments.--
(1) Subsection (a) of section 6402 of such Code is amended
by striking ``(c), (d), and (e),'' and inserting ``(c), (d),
(e), and (f)''.
(2) Paragraph (2) of section 6402(d) of such Code is
amended by striking ``and before such overpayment is reduced
pursuant to subsection (e)'' and inserting ``and before such
overpayment is reduced pursuant to subsections (e) and (f)''.
(3) Paragraph (3) of section 6402(e) of such Code is
amended in the last sentence by inserting ``or subsection
(f)'' after ``paragraph (1)''.
(4) Subsection (g) of section 6402 of such Code, as
redesignated by subsection (a), is amended by striking ``(c),
(d), or (e)'' and inserting ``(c), (d), (e), or (f)''.
(5) Subsection (i) of section 6402 of such Code, as
redesignated by subsection (a), is amended by striking
``subsection (c) or (e)'' and inserting ``subsection (c),
(e), or (f)''.
(e) Effective Date.--The amendments made by this section
shall apply to refunds payable under section 6402 of the
Internal Revenue Code of 1986 on or after the date of
enactment of this Act.
SEC. 307. OFFSETS.
(a) Time for Payment of Corporate Estimated Taxes.--
Subparagraph (B) of section 401(1) of the Tax Increase
Prevention and Reconciliation Act of 2005 is amended by
striking ``115 percent'' and inserting ``127.50 percent''.
(b) Customs User Fees.--Section 13031(j)(3)(A) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(j)(3)(A)) is amended by striking ``October 21,
2014'' and inserting ``February 17, 2015''.
(c) Timeframe for Medicare Part A and B Payments.--
Notwithstanding sections 1816(c) and 1842(c)(2) of the Social
Security Act or any other provision of law--
(1) any payment from the Federal Hospital Insurance Trust
Fund under section 1817 of the Social Security Act (42 U.S.C.
1395i) or from the Federal Supplementary Medical Insurance
Trust Fund under section 1841 of such Act (42 U.S.C. 1395t)
for claims submitted under part A or B of title XVIII of such
Act for items and services furnished under such part A or B,
respectively, that would otherwise be payable during the
period beginning on September 22, 2012, and ending on
September 30, 2012, shall be paid on the first business day
of October 2012; and
(2) no interest or late penalty shall be paid to an entity
or individual for any delay in a payment by reason of the
application of paragraph (1).
TITLE IV--WORKFORCE INVESTMENT IMPROVEMENT
SEC. 401. SHORT TITLE.
This title may be cited as the ``Workforce Investment
Improvement Act of 2007''.
SEC. 402. REFERENCES.
Except as otherwise expressly provided, wherever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
amendment or repeal shall be considered to be made to a
section or other provision of the Workforce Investment Act of
1998 (20 U.S.C. 9201 et seq.).
Subtitle A--Amendments to Title I of the Workforce Investment Act of
1998
SEC. 411. DEFINITIONS.
Section 101 (29 U.S.C. 2801) is amended--
(1) by striking paragraphs (13) and (24) and redesignating
paragraphs (1) through (12) as paragraphs (3) through (14),
and paragraphs (14) through (23) as paragraphs (15) through
(24), respectively;
(2) by inserting after ``In this title:'' the following new
paragraphs:
``(1) Accrued expenditures.--The term `accrued
expenditures' means charges incurred by recipients of funds
under this title for a given period requiring the provision
of funds for goods or other tangible property received;
services performed by employees, contractors, subgrantees,
subcontractors, and other payees; and other amounts becoming
owed under programs assisted under this title for which no
current services or performance is required, such as
annuities, insurance claims, and other benefit payments.
``(2) Administrative costs.--The term `administrative
costs' means expenditures incurred by State and local
workforce investment boards, direct recipients (including
State grant recipients under subtitle B and recipients of
awards under subtitle D), local grant recipients, local
fiscal agents or local grant subrecipients, and one-stop
operators in the performance of administrative functions and
in carrying out activities under this title which are not
related to the direct provision of workforce investment
services (including services to participants and employers).
Such costs include both personnel and non-personnel and both
direct and indirect.'';
(3) in paragraph (6) (as so redesignated), by inserting
``(or such other level as the Governor may establish)'' after
``8th grade level'';
(4) in paragraph (10)(C) (as so redesignated), by striking
``not less than 50 percent of the cost of the training'' and
inserting ``a significant portion of the cost of training, as
determined by the local board (or, in the case of an employer
in multiple local areas in the State, as determined by the
Governor), taking into account the size of the employer and
such other factors as the local board determines to be
appropriate''; and
(5) in paragraph (11) (as so redesignated)--
(A) in subparagraph (A)(ii)(II), by striking ``section
134(c)'' and inserting ``section 121(e)'';
(B) in subparagraph (B)(iii), by striking ``intensive
services described in section 134(d)(3)'' and inserting
``work ready services described in section 134(c)(3)(M)
through (U)'';
(C) in subparagraph (C), by striking ``or'' after the
semicolon;
(D) in subparagraph (D), by striking the period and
inserting ``; or''; and
(E) by adding at the end the following:
``(E)(i) is the spouse of a member of the Armed Forces on
active duty for a period of more than 30 days (as defined in
section 101(d)(2) of title 10, United States Code) who has
experienced a loss of employment as a direct result of
relocation to accommodate a permanent change in duty station
of such member; or
``(ii) is the spouse of a member of the Armed Forces on
active duty who meets the criteria described in paragraph
(12)(B).'';
(6) in paragraph (12)(A) (as redesignated)--
(A) by striking ``and'' after the semicolon and inserting
``or'';
(B) by striking ``(A)'' and inserting ``(A)(i)''; and
(C) by adding at the end the following:
``(ii) is the dependent spouse of a member of the Armed
Forces on active duty for a period of more than 30 days (as
defined in section 101(d)(2) of title 10, United States Code)
whose family income is significantly reduced because of a
deployment (as defined in section 991(b) of title 10, United
States Code, or pursuant to paragraph (4) of such section), a
call or order to active duty pursuant to a provision of law
referred to in section 101(a)(13)(B) of title 10, United
States Code, a permanent change of station, or the service-
connected (as defined in section 101(16) of title 38, United
States Code) death or disability of the member; and'';
(7) in paragraph (13) (as so redesignated), by inserting
``or regional'' after ``local'' each place it appears;
(8) in paragraph (14) (as so redesignated)--
(A) in subparagraph (A), by striking ``section 122(e)(3)''
and inserting ``section 122''; and
(B) by striking subparagraph (B), and inserting the
following:
``(B) work ready services, means a provider who is
identified or awarded a contract as described in section
134(c)(3);''.
(9) in paragraph (25)--
(A) in subparagraph (B), by striking ``higher of--'' and
all that follows through clause (ii) and inserting ``poverty
line for an equivalent period;''; and
(B) by redesignating subparagraphs (D) through (F) as
subparagraphs (E) through
[[Page H12302]]
(G), respectively, and inserting after subparagraph (C) the
following:
``(D) receives or is eligible to receive free or reduced
price lunch under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.);'';
(10) in paragraph (32) by striking ``the Republic of the
Marshall Islands, the Federated States of Micronesia,''; and
(11) by striking paragraph (33) and redesignating
paragraphs (34) through (53) as paragraphs (33) through (52),
respectively.
SEC. 412. PURPOSE.
Section 106 (29 U.S.C. 2811) is amended by inserting at the
end the following: ``It is also the purpose of this subtitle
to provide workforce investment activities in a manner that
promotes the informed choice of participants and actively
involves participants in obtaining training services that
will increase their skills and improve their employment
outcomes.''.
SEC. 413. STATE WORKFORCE INVESTMENT BOARDS.
(a) Membership.--
(1) In general.--Section 111(b) (29 U.S.C. 2821(b)) is
amended--
(A) by amending paragraph (1)(C) to read as follows:
``(C) representatives appointed by the Governor, who are--
``(i)(I) the lead State agency officials with
responsibility for the programs and activities that are
described in section 121(b) and carried out by one-stop
partners;
``(II) in any case in which no lead State agency official
has responsibility for such a program or activity, a
representative in the State with expertise relating to such
program or activity; and
``(III) if not included under subclause (I), the director
of the State unit, defined in section 7(8)(B) of the
Rehabilitation Act of 1973 (29 U.S.C. 705(8)(B)) except that
in a State that has established 2 or more designated State
units to administer the vocational rehabilitation program,
the board representative shall be the director of the
designated State unit that serves the most individuals with
disabilities in the State;
``(ii) the State agency officials responsible for economic
development;
``(iii) representatives of business in the State who--
``(I) are owners of businesses, chief executive or
operating officers of businesses, and other business
executives or employers with optimum policy making or hiring
authority, including members of local boards described in
section 117(b)(2)(A)(i);
``(II) represent businesses with employment opportunities
that reflect employment opportunities in the State; and
``(III) are appointed from among individuals nominated by
State business organizations and business trade associations;
``(iv) chief elected officials (representing both cities
and counties, where appropriate);
``(v) one or more representatives of labor organizations,
who have been nominated by State labor federations or labor
organizations within the State; and
``(vi) such other representatives and State agency
officials as the Governor may designate.''; and
(B) in paragraph (3), by striking ``paragraph (1)(C)(i)''
and inserting ``paragraph (1)(C)(iii)''.
(2) Conforming amendment.--Section 111(c) (29 U.S.C.
2811(c)) is amended by striking ``subsection (b)(1)(C)(i)''
and inserting ``subsection (b)(1)(C)(iii)''.
(b) Functions.--Section 111(d) (29 U.S.C. 2811(d)) is
amended--
(1) in paragraph (2), by striking ``section 134(c)'' and
inserting ``section 121(e)'';
(2) by amending paragraph (3) to read as follows:
``(3) development and review of statewide policies
affecting the integrated provision of services through the
one-stop delivery system described in section 121 within the
State, including--
``(A) the development of objective criteria and procedures
for, and the issuance of, certifications of one-stop centers;
``(B) the criteria for the allocation of one-stop center
infrastructure funding under section 121(h), and oversight of
the use of such funds;
``(C) policies relating to the appropriate roles and
contributions of one-stop partner programs within the one-
stop delivery system, including approaches to facilitating
equitable and efficient cost allocation in the one-stop
delivery system, consistent with section 121;
``(D) strategies for providing effective outreach to
individuals and employers who could benefit from services
provided through the one-stop delivery system; and
``(E) strategies for technology improvements to facilitate
access to services provided through the one-stop delivery
system, in remote areas, and for individuals with
disabilities, which may be utilized throughout the State;
``(F) identification and dissemination of information on
best practices for effective operation of one-stop centers,
including use of innovative business outreach, partnerships,
and service delivery strategies, including for hard-to-serve
populations; and
``(G) carrying out of such other matters as may promote
statewide objectives for, and enhance the performance of, the
one-stop delivery system;'';
(3) in paragraph (4), by inserting ``and the development of
State criteria relating to the appointment and certification
of local boards under section 117'' after ``section 116'';
(4) in paragraph (5), by striking ``128(b)(3)(B) and
133(b)(3)(B)'' and inserting ``sections 128(b)(3) and
133(b)(3)''; and
(5) in paragraph (8)--
(A) by striking ``employment statistics system'' and
inserting ``workforce and labor market information system'';
and
(B) by striking ``and'' after the semicolon;
(6) in paragraph (9)--
(A) by striking ``section 503'' and inserting ``section
136(i)''; and
(B) by striking the period and inserting ``; and''; and
(7) by inserting the following new paragraph after
paragraph (9):
``(10) reviewing and providing comment on the State plans
of all one-stop partner programs, where applicable, in order
to provide effective strategic leadership in the development
of a high-quality, comprehensive statewide workforce
investment system.''.
(c) Elimination of Alternative Entity and Provision of
Authority To Hire Staff.--Section 111(e) (29 U.S.C. 2821(e))
is amended to read as follows:
``(e) Authority To Hire Staff.--The State board may hire
staff to assist in carrying out the functions described in
subsection (d).''.
(d) Conflict of Interest.--Section 111(f)(1) (29 U.S.C.
2821(f)(1)) is amended by inserting ``or participate in
action taken'' after ``vote''.
(e) Sunshine Provision.--Section 111(g) (29 U.S.C. 2821(g))
is amended--
(1) by inserting ``, and modifications to the State plan,''
after ``State plan'' ; and
(2) by inserting ``, and modifications to the State plan''
after ``the plan''.
SEC. 414. STATE PLAN.
(a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is
amended by striking ``5-year strategy'' and inserting ``2-
year strategy''.
(b) Contents.--Section 112(b) (29 U.S.C. 2822(b)) is
amended--
(1) by amending paragraph (7) to read as follows:
``(7) a description of the State criteria for determining
the eligibility of training providers in accordance with
section 122, including how the State will take into account
the performance of providers and whether the training
programs relate to occupations that are in demand;'';
(2) in paragraph (8)--
(A) in subparagraph (A)--
(i) in clause (ix), by striking ``and'' after the
semicolon;
(ii) by adding the following new clause after clause (x):
``(xi) programs authorized under title II of the Social
Security Act (42 U.S.C. 401 et seq.) (related to Federal old-
age, survivors, and disability insurance benefits), title XVI
of such Act (42 U.S.C. 1381 et seq.) (relating to
supplemental security income), title XIX of such Act (42
U.S.C. 1396 et seq.) (relating to Medicaid), and title XX of
such Act (42 U.S.C. 1397 et seq.) (relating to block grants
to States for social services), programs authorized under
title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796 et
seq.), and programs carried out by State agencies relating to
mental retardation and developmental disabilities; and'';
(B) by amending subparagraph (B) to read as follows:
``(B) a description of common data collection and reporting
processes used for the programs and activities described in
subparagraph (A) that are one-stop partners, including
assurances that such processes utilize quarterly wage records
for performance measures relating to entry into employment,
retention in employment, and average earnings that are
applicable to such programs or activities, or, if such
records are not being used, an identification of the barriers
to such use and a description of how the State will address
such barriers within one year of the approval of the plan;'';
and
(3) in paragraph (11), by inserting ``, including controls
and procedures to ensure that the limitations on the costs of
administration are not exceeded''.
(4) in paragraph (12)(A), by striking ``sections
128(b)(3)(B) and 133(b)(3)(B)'' and inserting ``sections
128(b)(3) and 133(b)(3)'';
(5) in paragraph (14), by striking ``section 134(c)'' and
inserting ``section 121(e)'';
(6) in paragraph (17)(A)--
(A) in clause (iii) by striking ``and'';
(B) by amending clause (iv) to read as follows:
``(iv) how the State will serve the employment and training
needs of dislocated workers (including displaced homemakers),
low income individuals (including recipients of public
assistance), individuals with limited English proficiency,
homeless individuals, individuals training for nontraditional
employment, and other individuals with multiple barriers to
employment (including older individuals); and''; and
(C) by inserting after clause (iv) the following:
``(v) how the State will serve the employment and training
needs of individuals with disabilities, consistent with
section 188 and Executive Order 13217 (42 U.S.C. 12131 note;
relating to community-based alternatives for individuals with
disabilities) including the provision of outreach, intake,
assessments, and service delivery, the development of
performance measures established under section 136, the
training of staff, and other aspects of accessibility to
program services, consistent with sections 504 and 508 of the
Rehabilitation Act of 1973; and'';
(7) in paragraph (17)(B), by striking ``to the extent
practicable'' and inserting ``in accordance with the
requirements of the Jobs for Veterans Act (PL 107-288)'';
[[Page H12303]]
(8) in paragraph (18)(D), by striking ``youth opportunity
grants'' and inserting ``youth challenge grants''; and
(9) by adding at the end the following new paragraphs:
``(19) a description of the process and methodology for
determining one-stop partner program contributions for the
cost of the infrastructure of one-stop centers under section
121(h)(1) and of the formula for allocating such
infrastructure funds to local areas under section 121(h)(3);
``(20) a description of the strategies and programs
providing outreach to businesses, identifying workforce needs
of businesses in the State, and ensuring that such needs will
be met (including the needs of small businesses), which may
include--
``(A) implementing innovative programs and strategies
designed to meet the needs of all businesses in the State,
including small businesses, which may include incumbent
worker training programs, sectoral and industry cluster
strategies, regional skills alliances, career ladder
programs, utilization of effective business intermediaries,
and other business services and strategies that better engage
employers in workforce investment activities and make the
statewide workforce investment system more relevant to the
needs of State and local businesses, consistent with the
objectives of this title; and
``(B) providing incentives and technical assistance to
assist local areas in more fully engaging all employers,
including small employers, in local workforce investment
activities, to make the workforce investment system more
relevant to the needs of area businesses, and to better
coordinate workforce investment, economic development, and
postsecondary education and training efforts to contribute to
the economic well-being of the local area and region, as
determined appropriate by the local board;
``(21) a description of how the State will utilize
technology to facilitate access to services in remote areas
which may be utilized throughout the State;
``(22) a description of the State strategy and assistance
to be provided for encouraging regional cooperation within
the State and across State borders as appropriate; and
``(23) a description of the actions that will be taken by
the State to foster communication and partnerships with non-
profit organizations (including community, faith-based, and
philanthropic organizations) that provide employment-related,
training, and complementary services, in order to enhance the
quality and comprehensiveness of services available to
participants under this title.''.
(c) Modification to Plan.--Section 112(d) (29 U.S.C.
2822(d)) is amended by striking ``5-year period'' and
inserting ``2-year period''.
SEC. 415. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) Considerations.--Section 116(a)(1)(B) (29 U.S.C.
2831(a)(1)(B)) is amended by adding at the end the following
clause:
``(vi) The extent to which such local areas will promote
efficiency in the administration and provision of
services.''.
(2) Automatic designation.--Section 116(a)(2) (29 U.S.C.
2831(a)(2)) is amended to read as follows:
``(2) Automatic designation.--
``(A) In general.--Except as provided in subparagraph (B)
of this paragraph and subsection (b), the Governor shall
approve a request for designation as a local area from--
``(i) any unit of general local government with a
population of 500,000 or more; and
``(ii) an area served by a rural concentrated employment
program grant recipient that served as a service delivery
area or substate area under the Job Training Partnership Act
(29 U.S.C. 1501 et seq.),
for the 2-year period covered by a State plan under section
112 if such request is made not later than the date of the
submission of the State plan.
``(B) Continued designation based on performance.--The
Governor may deny a request for designation submitted
pursuant to subparagraph (A) if such unit of government was
designated as a local area for the preceding 2-year period
covered by a State plan and the Governor determines that such
local area did not perform successfully during such
period.''.
(b) Single Local Area States.--Section 116(b) (29 U.S.C.
2831(b)) is amended to read as follows:
``(b) Single Local Area States.--
``(1) Continuation of previous designation.--
Notwithstanding subsection (a), the Governor of any State
that was a single local area for purposes of this title as of
July 1, 2007, may continue to designate the State as a single
local area for purposes of this title if the Governor
identifies the State as a local area in the State plan under
section 112(b)(5).
``(2) New designation.--The Governor of a State not
described in paragraph (1) may designate the State as a
single local area if, prior to the submission of the State
plan or modification to such plan so designating the State,
no local area meeting the requirements for automatic
designation under subsection (a) requests such designation as
a separate local area.
``(3) Effect on local plan.--In any case in which the local
area is the State pursuant to this subsection, the local plan
under section 118 shall be submitted to the Secretary for
approval as part of the State plan under section 112.''.
(c) Regional Planning.--Section 116(c)(1) (29 U.S.C.
2831(c)(1)) is amended by adding at the end the following:
``The State may require the local boards for the designated
region to prepare a single regional plan that incorporates
the elements of the local plan under section 118 and that is
submitted and approved in lieu of separate local plans under
such section.''.
SEC. 416. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) Composition.--Section 117(b)(2) (29 U.S.C. 2832(b)(2))
is amended--
(1) in subparagraph (A)--
(A) in clause (i)(II), by inserting ``, businesses that are
in the leading industries in the local area, and large and
small businesses in the local area'' after ``local area'';
(B) by amending clause (ii) to read as follows:
``(ii) a superintendent of the local secondary school
system and the president or chief executive officer of a
postsecondary educational institution serving the local area
(including community colleges, where such entities exist);'';
(C) in clause (iii)--
(i) by striking ``representatives'' and inserting ``one or
more representatives''; and
(ii) by inserting ``or by labor organizations in the local
area'' after ``federations'';
(D) in clause (iv)--
(i) by striking ``representatives'' and inserting ``one or
more representatives''; and
(ii) by striking the semicolon and inserting ``and faith-
based organizations; and'';
(E) in clause (v) by inserting ``one or more'' before
``representatives''; and
(F) by striking clause (vi); and
(2) in subparagraph (B), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following subparagraph:
``(C) except for the individuals described in
subparagraph(A)(ii), shall not include any individual who is
employed by an entity receiving funds for the provision of
services under chapters 4 or 5.''.
(b) Authority of Board Members.--Section 117(b)(3) (29
U.S.C. 2832(b) is amended--
(1) in the heading, by inserting ``AND REPRESENTATION''
after ``MEMBERS''; and
(2) by adding at the end the following: ``The members of
the board shall represent diverse geographic sections within
the local area.''.
(c) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is
amended--
(1) in paragraph (2)(B), by striking ``by awarding grants''
and all that follows through ``youth council'';
(2) by striking paragraph (2)(D) and inserting the
following:
``(D) Identification of eligible providers of work ready
services.--If the one-stop operator does not provide the work
ready services described in section 134(c)(3)(M) through (U)
in the local area, the local board shall identify eligible
providers of such services in the local area by awarding
contracts.'';
(3) in paragraph (3)(B) by striking clause (ii) and
inserting the following:
``(ii) Staff.--The local board may employ staff to assist
in carrying out the functions described in this
subsection.'';
(4) in paragraph (4) by inserting ``, and ensure the
appropriate use and management of the funds provided under
this title for such programs, activities, and system'' after
``area'';
(5) in paragraph (6)--
(A) by striking ``employment statistics system'' and
inserting ``workforce and labor market information system'';
and
(B) by striking ``employment statistics system'' and
inserting ``workforce and labor market information system'';
(6) by amending paragraph (8) to read as follows:
``(8) Convening, brokering, and leveraging.--The local
board shall support a comprehensive workforce investment
system for the local area and promote the participation by
private sector employers, service providers, and other
stakeholders in such system. The Board shall ensure the
effective provision, through the system, of convening,
brokering, and leveraging activities, through intermediaries
such as the one-stop operator in the local area or through
other organizations, to assist such employers in meeting
hiring needs. Such activities may include--
``(A) convening private sector employers, including small
employers, labor, economic development, and education leaders
in the area to align system missions and services, and to
identify and meet the employment, education, and skills
training needs of the local area in support of regional and
local economic growth strategies;
``(B) providing leadership in the design and implementation
of a comprehensive workforce development system that extends
beyond those programs authorized under title I of this Act
(including programs identified in section 121(b)) for the
local area;
``(C) brokering relationships and service arrangements
across system stakeholders and partners; and
``(D) leveraging resources other than those provided under
title I of this Act, including public and private resources,
to significantly expand resources available for employment
and training activities identified as necessary in the local
area.'';
(7) by adding at the end the following:
``(9) Technology improvements.--The local board shall
develop strategies for technology improvements to facilitate
access to services, in remote areas, for services authorized
under this subtitle and carried out in the local area.''.
(d) Limitations.--Section 117(f) (29 U.S.C. 2832(f)) is
amended by striking paragraph (2) and inserting the
following:
[[Page H12304]]
``(2) Work ready services, designation, or certification as
one-stop operators.--A local board may provide work ready
services described in section (c)(d)(2) through a one-stop
delivery system described in section 121 or be designated or
certified as a one-stop operator only with the agreement of
the chief elected official and the Governor.''.
(e) Conflict of Interest.--Section 117(g)(1) (29 U.S.C.
2832(g)(1)) is amended by inserting ``or participate in
action taken'' after ``vote''.
(f) Authority To Establish Councils and Elimination of
Requirement for Youth Councils.--Section 117(h) (29 U.S.C.
2832(h)) is amended to read as follows:
``(h) Establishment of Councils.--The local board may
establish councils to provide information and advice to
assist the local board in carrying out activities under this
title. Such councils may include a council composed of one-
stop partners to advise the local board on the operation of
the one-stop delivery system, a youth council composed of
experts and stakeholders in youth programs to advise the
local board on activities for youth, and such other councils
as the local board determines are appropriate.''.
(g) Repeal of Alternative Entity Provision.--Section 117
(29 U.S.C. 2832) is further amended by striking subsection
(i).
SEC. 417. LOCAL PLAN.
(a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is
amended by striking ``5-year'' and inserting ``2-year''.
(b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is
amended--
(1) by amending paragraph (2) to read as follows:
``(2) a description of the one-stop delivery system to be
established or designated in the local area, including a
description of how the local board will ensure the continuous
improvement of eligible providers of services through the
system and ensure that such providers meet the employment
needs of local employers and participants;'';
(2) in paragraph (4)--
(A) by striking ``and dislocated worker''; and
(B) by inserting before the semicolon ``, including a
description of how the local area will implement the
requirements of section 134(c)(4)(G) relating to ensuring
that training services are linked to occupations that are in
demand'';
(3) in paragraph (5), by striking ``statewide rapid
response activities'' and inserting ``statewide activities'';
(4) in paragraph (9), by striking ``; and'' and inserting a
semicolon; and
(5) by redesignating paragraph (10) as paragraph (13) and
inserting after paragraph (9) the following:
``(10) a description of the strategies and services that
will be initiated in the local area to more fully engage all
employers, including small employers, in workforce investment
activities, to make the workforce investment system more
relevant to the needs of area businesses, and to better
coordinate workforce investment and economic development
efforts, which may include the implementation of innovative
initiatives such as incumbent worker training programs,
sectoral and industry cluster strategies, regional skills
alliance initiatives, career ladder programs, utilization of
effective business intermediaries, and other business
services and strategies designed to meet the needs of area
employers and contribute to the economic well-being of the
local area, as determined appropriate by the local board,
consistent with the objectives of this title;
``(11) a description of how the local board will facilitate
access to services provided through the one-stop delivery
system involved in remote areas, including facilitating
access through the use of technology;
``(12) how the local area will serve the employment and
training needs of individuals with disabilities, consistent
with section 188 and Executive Order 13217 (42 U.S.C. 12131
note) including the provision of outreach, intake,
assessments, and service delivery, the development of
performance measures, the training of staff, and other
aspects of accessibility to program services, consistent with
sections 504 and 508 of the Rehabilitation Act of 1973;
and''.
SEC. 418. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) One-Stop Partners.--
(1) Required partners.--Section 121(b)(1) (29 U.S.C.
2841(b)(1)) is amended--
(A) by striking subparagraph (A) and inserting the
following:
``(A) Roles and responsibilities of one-stop partners.--
Each entity that carries out a program or activities
described in subparagraph (B) shall--
``(i) provide access through the one-stop delivery system
to the programs and activities carried out by the entity,
including making the work ready services described in section
134(d)(2) that are applicable to the program of the entity
available at the one-stop centers (in addition to any other
appropriate locations);
``(ii) use a portion of the funds available to the program
of the entity to maintain the one-stop delivery system,
including payment of the infrastructure costs of one-stop
centers in accordance with subsection (h);
``(iii) enter into a local memorandum of understanding with
the local board relating to the operation of the one-stop
system that meets the requirements of subsection (c);
``(iv) participate in the operation of the one-stop system
consistent with the terms of the memorandum of understanding,
the requirements of this title, and the requirements of the
Federal laws authorizing the programs carried out by the
entity; and
``(v) provide representation on the State board to the
extent provided under section 111.'';
(B) in subparagraph (B)--
(i) by striking clauses (ii) and (v);
(ii) by redesignating clauses (iii) and (iv) as clauses
(ii) and (iii), respectively, and by redesignating clauses
(vi) through (xii) as clauses (iv) through (x), respectively;
(iii) in clause (ix) (as so redesignated), by striking
``and'' at the end;
(iv) in clause (x) (as so redesignated), by striking the
period and inserting ``; and''; and
(v) by inserting after clause (x)(as so redesignated) the
following:
``(xi) programs authorized under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), subject to
subparagraph (C); and
``(xii) programs authorized under section 6(d)(4) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)), subject to
subparagraph (C).''; and
(C) by adding after subparagraph (B) the following:
``(C) Determination by the governor.--The program referred
to in clauses (xi) and (xii) of subparagraph (B) shall be
included as a required partner for purposes of this title in
a State unless the Governor of the State notifies the
Secretary and the Secretary of Health and Human Services (in
the case of the program referred to in clause (xi) of
subparagraph (B)), or the Secretary and the Secretary of
Agriculture (in the case of the program referred to in clause
(xii) of subparagraph (B)) in writing of a determination by
the Governor not to include such programs as required
partners for purposes of this title in the State.''.
(2) Additional partners.--Section 121(b)(2)(B) (29 U.S.C.
2841(b)(2)(B)) is amended to read as follows:
``(B) Programs.--The programs referred to in subparagraph
(A) may include--
``(i) employment and training programs administered by the
Social Security Administration, including the Ticket to Work
program (established by Public Law 106-170);
``(ii) employment and training programs carried out by the
Small Business Administration;
``(iii) programs under part D of title IV of the Social
Security Act (42 U.S.C. 451 et seq.) (relating to child
support enforcement);
``(iv) employment, training, and literacy services carried
out by public libraries;
``(v) programs carried out in the local area for
individuals with disabilities, including programs carried out
by State agencies relating to mental health, mental
retardation, and developmental disabilities, State Medicaid
agencies, State Independent Living Councils, and Independent
Living Centers;
``(vi) programs authorized under the National and Community
Service Act of 1990 (42 U.S.C. 1250 et seq.);
``(vii) cooperative extension programs carried out by the
Department of Agriculture; and
``(viii) other appropriate Federal, State, or local
programs, including programs in the private sector.''.
(b) Local Memorandum of Understanding.--Section
121(c)(2)(A) (29 U.S.C. 2841(c)(2)(A)) is amended to read as
follows:
``(A) provisions describing--
``(i) the services to be provided through the one-stop
delivery system consistent with the requirements of this
section, including the manner in which the services will be
coordinated through such system;
``(ii) how the costs of such services and the operating
costs of such system will be funded, through cash and in-kind
contributions, to provide a stable and equitable funding
stream for ongoing one-stop system operations, including the
funding of the infrastructure costs of one-stop centers in
accordance with subsection (h);
``(iii) methods of referral of individuals between the one-
stop operator and the one-stop partners for appropriate
services and activities; and
``(iv) the duration of the memorandum of understanding and
the procedures for amending the memorandum during the term of
the memorandum, and assurances that such memorandum shall be
reviewed not less than once every 2-year period to ensure
appropriate funding and delivery of services; and''.
(c) Provision of Services.--Subtitle B of title I is
amended--
(1) in section 121(d)(2), by striking ``section 134(c)''
and inserting ``subsection (e)'';
(2) by striking subsection (e) of section 121;
(3) by moving subsection (c) of section 134 from section
134, redesignating such subsection as subsection (e), and
inserting such subsection (as so redesignated) after
subsection (d) of section 121; and
(4) by amending subsection (e) of section 121 (as moved and
redesignated by paragraph (3))--
(A) in paragraph (1)(A), by striking ``core services
described in subsection (d)(2)'' and inserting ``work ready
services described in section 134(c)(2)'';
(B) in paragraph (1)(B)--
(i) by striking ``intensive services'';
(ii) by striking ``paragraphs (3) and (4) of subsection
(d)'' and inserting ``section 134(c)(4)'';
(iii) by striking ``individual training accounts'' and
inserting ``career enhancement accounts''; and
(iv) by striking ``subsection (d)(4)(G)'' and inserting
``section 134(c)(4)(G)'';
[[Page H12305]]
(C) in paragraph (1)(C), by striking ``subsection (e)'' and
inserting ``section 134(d)'';
(D) in paragraph (1)(D), by striking ``section 121(b)'' and
inserting ``subsection (b)'';
(E) by amending paragraph (1)(E) to read as follows:
``(E) shall provide access to the information described in
section 15(e) of the Wagner-Peyser Act (29 U.S.C. 49l-
2(e)).''; and
(F) in paragraph (2)(B)(ii)(II), by striking ``core
services'' and inserting ``work ready services''.
(d) Certification and Funding of One-Stop Centers.--Section
121 (as amended by subsections (b) and (c)) is further
amended by adding at the end the following new subsections:
``(g) Certification of One-Stop Centers.--
``(1) In general.--
``(A) In general.--The State board shall establish
objective procedures and criteria for periodically certifying
one-stop centers for the purpose of awarding the one-stop
infrastructure funding described in subsection (h).
``(B) Criteria.--The criteria for certification under this
subsection shall include minimum standards relating to the
scope and degree of service integration achieved by the
centers involving the programs provided by the one-stop
partners, and how the centers ensure that such providers meet
the employment needs of local employers and participants.
``(C) Effect of certification.--One-stop centers certified
under this subsection shall be eligible to receive the
infrastructure grants authorized under subsection (h).
``(2) Local boards.--Consistent with the criteria developed
by the State, the local board may develop additional criteria
of higher standards to respond to local labor market and
demographic conditions and trends.
``(h) One-Stop Infrastructure Funding.--
``(1) Partner contributions.--
``(A) Provision of funds.--Notwithstanding any other
provision of law, as determined under subparagraph (B), a
portion of the Federal funds provided to the State and areas
within the State under the Federal laws authorizing the one-
stop partner programs described in subsection (b)(1)(B) and
participating additional partner programs described in
(b)(2)(B) for a fiscal year shall be provided to the Governor
by such programs to carry out this subsection.
``(B) Determination of governor.--
``(i) In general.--Subject to subparagraph (C), the
Governor, in consultation with the State board, shall
determine the portion of funds to be provided under
subparagraph (A) by each one-stop partner and in making such
determination shall consider the proportionate use of the
one-stop centers by each partner, the costs of administration
for purposes not related to one-stop centers for each
partner, and other relevant factors described in paragraph
(3).
``(ii) Special rule.--In those States where the State
constitution places policy-making authority that is
independent of the authority of the Governor in an entity or
official with respect to the funds provided for adult
education and literacy activities authorized under title II
of this Act and for postsecondary career education activities
authorized under the Carl D. Perkins Career and Technical
Education Act, the determination described in clause (i) with
respect to such programs shall be made by the Governor with
the appropriate entity or official with such independent
policy-making authority.
``(iii) Appeal by one-stop partners.--The Governor shall
establish a procedure for the one-stop partner administering
a program described in subsection (b) to appeal a
determination regarding the portion of funds to be
contributed under this paragraph on the basis that such
determination is inconsistent with the criteria described in
the State plan or with the requirements of this paragraph.
Such procedure shall ensure prompt resolution of the appeal.
``(C) Limitations.--
``(i) Provision from administrative funds.--The funds
provided under this paragraph by each one-stop partner shall
be provided only from funds available for the costs of
administration under the program administered by such
partner, and shall be subject to the limitations with respect
to the portion of funds under such programs that may be used
for administration.
``(ii) Federal direct spending programs.--Programs that are
Federal direct spending under section 250(c)(8) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 900(c)(8)) shall not, for purposes of this paragraph,
be required to provide an amount in excess of the amount
determined to be equivalent to the proportionate use of the
one-stop centers by such programs in the State.
``(iii) Native american programs.--Native American programs
established under section 166 shall not be subject to the
provisions of this subsection. The method for determining the
appropriate portion of funds to be provided by such Native
American programs to pay for the costs of infrastructure of a
one-stop center certified under subsection (g) shall be
determined as part of the development of the memorandum of
understanding under subsection (c) for the one-stop center
and shall be stated in the memorandum.
``(2) Allocation by governor.--From the funds provided
under paragraph (1), the Governor shall allocate funds to
local areas in accordance with the formula established under
paragraph (3) for the purposes of assisting in paying the
costs of the infrastructure of One-Stop centers certified
under subsection (g).
``(3) Allocation formula.--The State board shall develop a
formula to be used by the Governor to allocate the funds
described in paragraph (1). The formula shall include such
factors as the State board determines are appropriate, which
may include factors such as the number of centers in the
local area that have been certified, the population served by
such centers, and the performance of such centers.
``(4) Costs of infrastructure.--For purposes of this
subsection, the term `costs of infrastructure' means the
nonpersonnel costs that are necessary for the general
operation of a one-stop center, including the rental costs of
the facilities, the costs of utilities and maintenance, and
equipment (including adaptive technology for individuals with
disabilities).
``(i) Other Funds.--
``(1) In general.--In addition to the funds provided to
carry out subsection (h), a portion of funds made available
under Federal law authorizing the one-stop partner programs
described in subsection (b)(1)(B) and participating partner
programs described in subsection (b)(2)(B), or the noncash
resources available under such programs shall be used to pay
the costs relating to the operation of the one-stop delivery
system that are not paid for from the funds provided under
subsection (h), to the extent not inconsistent with the
Federal law involved including--
``(A) infrastructure costs that are in excess of the funds
provided under subsection (h);
``(B) common costs that are in addition to the costs of
infrastructure; and
``(C) the costs of the provision of work ready services
applicable to each program.
``(2) Determination and guidance.--The method for
determining the appropriate portion of funds and noncash
resources to be provided by each program under paragraph (1)
shall be determined as part of the memorandum of
understanding under subsection (c). The State board shall
provide guidance to facilitate the determination of
appropriate allocation of the funds and noncash resources in
local areas.''.
SEC. 419. ELIGIBLE PROVIDERS OF TRAINING SERVICES.
Section 122 (29 U.S.C. 2842) is amended to read as follows:
``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING
SERVICES.
``(a) Eligibility.--
``(1) In general.--The Governor, after consultation with
the State board, shall establish criteria and procedures
regarding the eligibility of providers of training services
described in section 134(c)(4) to receive funds provided
under section 133(b) for the provision of such training
services.
``(2) Providers.--Subject to the provisions of this
section, to be eligible to receive the funds provided under
section 133(b) for the provision of training services, the
provider shall be--
``(A) a postsecondary educational institution that--
``(i) is eligible to receive Federal funds under title IV
of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
and
``(ii) provides a program that leads to an associate
degree, baccalaureate degree, or industry-recognized
certification;
``(B) an entity that carries out programs under the Act of
August 16, 1937 (commonly known as the `National
Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50
et seq.); or
``(C) another public or private provider of a program of
training services.
``(3) Inclusion in list of eligible providers.--A provider
described in subparagraph (A) or (C) of paragraph (2) shall
comply with the criteria and procedures established under
this section to be included on the list of eligible providers
of training services described in subsection (d)(1). A
provider described in paragraph (2)(B) shall be included on
the list of eligible providers of training services described
in subsection (d)(1) for so long as the provider remains
certified by the Department of Labor to carry out the
programs described in paragraph (2)(B).
``(b) Criteria.--
``(1) In general.--The criteria established pursuant to
subsection (a) shall take into account--
``(A) the performance of providers of training services
with respect to the performance measures described in section
136 and other matters for which information is required under
paragraph (2) and other appropriate measures of performance
outcomes for those participants receiving training services
under this subtitle (taking into consideration the
characteristics of the population served and relevant
economic conditions);
``(B) whether the training programs of such providers
relate to occupations that are in demand,
``(C) the need to ensure access to training services
throughout the State, including any rural areas;
``(D) the ability of providers to offer programs that lead
to a degree or an industry-recognized certification,
certificate, or mastery;
``(E) the information such providers are required to report
to State agencies with respect to other Federal and State
programs (other than the program carried out under this
subtitle), including one-stop partner programs; and
``(F) such other factors as the Governor determines are
appropriate to ensure the quality of services provided, the
accountability
[[Page H12306]]
of providers, that the one-stop centers will ensure that such
providers meet the needs of local employers and participants,
and the informed choice of participants under chapter 5.
``(2) Information.--The criteria established by the
Governor shall require that a provider of training services
submit appropriate, accurate, and timely information to the
State for purposes of carrying out subsection (d), with
respect to participants receiving training services under
this subtitle in the applicable program, including--
``(A) information on degrees and industry-recognized
certifications received by such participants;
``(B) information on costs of attendance for such
participants;
``(C) information on the program completion rate for such
participants; and
``(D) information on the performance of the provider with
respect to the performance measures described in section 136
for such participants (taking into consideration the
characteristics of the population served and relevant
economic conditions), which may include information
specifying the percentage of such participants who entered
unsubsidized employment in an occupation related to the
program.
``(3) Renewal.--The criteria established by the Governor
shall also provide for biennial review and renewal of
eligibility under this section for providers of training
services.
``(4) Local criteria.--A local board in the State may
establish criteria in addition to the criteria established by
the Governor, or may require higher levels of performance
than required under the criteria established by the Governor,
for purposes of determining the eligibility of providers of
training services to receive funds described in subsection
(a) to provide the services in the local area involved.
``(5) Limitation.--In carrying out the requirements of this
subsection, no personally identifiable information regarding
a student, including Social Security number, student
identification number, or other identifier, may be disclosed
without the prior written consent of the parent or eligible
student in compliance with section 444 of the General
Education Provisions Act (20 U.S.C. 1232g).
``(c) Procedures.--The procedures established under
subsection (a) shall identify the application process for a
provider of training services to become eligible to receive
funds under section 133(b) for the provision of training
services, and identify the respective roles of the State and
local areas in receiving and reviewing applications and in
making determinations of eligibility based on the criteria
established under this section. The procedures shall also
establish a process for a provider of training services to
appeal a denial or termination of eligibility under this
section that includes an opportunity for a hearing and
prescribes appropriate time limits to ensure prompt
resolution of the appeal.
``(d) Information To Assist Participants in Choosing
Providers.--In order to facilitate and assist participants
under chapter 5 in choosing providers of training services,
the Governor shall ensure that an appropriate list or lists
of providers determined eligible under this section in the
State, including information regarding the occupations in
demand that relate to the training programs of such
providers, is provided to the local boards in the State to be
made available to such participants and to members of the
public through the one-stop delivery system in the State. The
accompanying information shall consist of information
provided by providers described in subparagraphs (A) and (C)
of subsection (a)(2) in accordance with subsection (b)
(including information on receipt of degrees and industry-
recognized certifications, and costs of attendance, for
participants receiving training services under this subtitle
in applicable programs) and such other information as the
Secretary determines is appropriate. The list and the
accompanying information shall be made available to such
participants and to members of the public through the one-
stop delivery system in the State.
``(e) Enforcement.--
``(1) In general.--The criteria and procedures established
under this section shall provide the following:
``(A) Intentionally supplying inaccurate information.--Upon
a determination, by an individual or entity specified in the
criteria or procedures, that a provider of training services,
or individual providing information on behalf of the
provider, intentionally supplied inaccurate information under
this section, the eligibility of such provider to receive
funds under chapter 5 shall be terminated for a period of
time that is not less than 2 years.
``(B) Substantial violations.--Upon a determination, by an
individual or entity specified in the criteria or procedures,
that a provider of training services substantially violated
any requirement under this title, the eligibility of such
provider to receive funds under the program involved may be
terminated, or other appropriate action may be taken.
``(C) Repayment.--A provider of training services whose
eligibility is terminated under subparagraph (A) or (B) shall
be liable for the repayment of funds received under chapter 5
during a period of noncompliance described in such
subparagraph.
``(2) Construction.--Paragraph (1) shall be construed to
provide remedies and penalties that supplement, but do not
supplant, other civil and criminal remedies and penalties.
``(f) Agreements With Other States.--States may enter into
agreements, on a reciprocal basis, to permit eligible
providers of training services to accept career enhancement
accounts provided in another State.
``(g) Recommendations.--In developing the criteria,
procedures, and information required under this section, the
Governor shall solicit and take into consideration the
recommendations of local boards and providers of training
services within the State.
``(h) Opportunity To Submit Comments.--During the
development of the criteria, procedures, requirements for
information, and the list of eligible providers required
under this section, the Governor shall provide an opportunity
for interested members of the public, including
representatives of business and labor organizations, to
submit comments regarding such criteria, procedures, and
information.
``(i) On-the-Job Training or Customized Training
Exception.--
``(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the requirements
of subsections (a) through (g).
``(2) Collection and dissemination of information.--A one-
stop operator in a local area shall collect such performance
information from on-the-job training and customized training
providers as the Governor may require, determine whether the
providers meet such performance criteria as the Governor may
require, and disseminate information identifying providers
that meet the criteria as eligible providers, and the
performance information, through the one-stop delivery
system. Providers determined to meet the criteria shall be
considered to be identified as eligible providers of training
services.''.
SEC. 420. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
(a) Eligible Providers of Youth Activities.--Section 123
(29 U.S.C. 2843) is amended to read as follows:
``SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
``(a) In General.--From the funds allocated under section
128(b) to a local area, the local board for such area shall
award grants or contracts on a competitive basis to providers
of youth activities identified based on the criteria in the
State plan and shall conduct oversight with respect to such
providers.
``(b) Exceptions.--A local board may award grants or
contracts on a sole-source basis if such board determines
there are an insufficient number of eligible providers of
training services in the local area involved (such as rural
areas) for grants to be awarded on a competitive basis under
subsection (a).''.
(b) Clerical Amendment.--The table of contents in section
1(b) is amended by amending the item related to section 123
to read as follows:
``Sec. 123. Eligible providers of youth activities.''.
SEC. 421. YOUTH ACTIVITIES.
(a) State Allotments.--Section 127 (29 U.S.C. 2852(a)) is
amended--
(1) in subsection (a)(1), by striking ``opportunity'' and
inserting ``challenge''; and
(2) by striking subsection (b) and inserting the following:
``(b) Allotment Among States.--
``(1) Youth activities.--
``(A) Youth challenge grants.--
``(i) Reservation of funds.--Of the amount appropriated
under section 137(a) for each fiscal year, the Secretary
shall reserve 25 percent to provide youth challenge grants
under section 169.
``(ii) Limitation.--Notwithstanding clause (i), if the
amount appropriated under section 137(a) for a fiscal year
exceeds $1,000,000,000, the Secretary shall reserve
$250,000,000 to provide youth challenge grants under section
169.
``(B) Outlying areas and native americans.--
``(i) In general.--After determining the amount to be
reserved under subparagraph (A), of the remainder of the
amount appropriated under section 137(a) for each fiscal year
the Secretary shall--
``(I) reserve not more than \1/4\ of one percent of such
amount to provide assistance to the outlying areas to carry
out youth activities and statewide workforce investment
activities; and
``(II) reserve not more than 1 and \1/2\ percent of such
amount to provide youth activities under section 166
(relating to Native Americans).
``(ii) Restriction.--The Republic of Palau shall cease to
be eligible to receive funding under this subparagraph upon
entering into an agreement for extension of United States
educational assistance under the Compact of Free Association
(approved by the Compact of Free Association Amendments Act
of 2003 (Public Law 108-188)) after the date of enactment of
the Workforce Investment Improvement Act of 2007.
``(C) States.--
``(i) In general.--Of the remainder of the amount
appropriated under section 137(a) for a fiscal year that is
available after determining the amounts to be reserved under
subparagraphs (A) and (B), the Secretary shall allot--
``(I) the amount of the remainder that is less than or
equal to the total amount that was allotted to States for
fiscal year 2007 under section 127(b)(1)(C) of this Act (as
in
[[Page H12307]]
effect on the day before the date of enactment of the
Workforce Investment Improvement Act of 2007) in accordance
with the requirements of such section 127(b)(1)(C); and
``(II) the amount of the remainder, if any, in excess of
the amount referred to in subclause (I) in accordance with
clause (ii).
``(ii) Formulas for excess funds.--Subject to clauses (iii)
and (iv), of the amounts described in clause (i)(II)--
``(I) 33\1/3\ percent shall be allotted on the basis of the
relative number of individuals in the civilian labor force
who are ages 16 through 19 in each State, compared to the
total number of individuals in the civilian labor force who
are ages 16 through 19 in all States;
``(II) 33\1/3\ percent shall be allotted on the basis of
the relative number of unemployed individuals in each State,
compared to the total number of unemployed individuals in all
States; and
``(III) 33\1/3\ percent shall be allotted on the basis of
the relative number of disadvantaged youth who are ages 16
through 21 in each State, compared to the total number of
disadvantaged youth who are ages 16 through 21 in all States.
``(iii) Minimum and maximum percentages.--The Secretary
shall ensure that no State shall receive an allotment for a
fiscal year that is less than 90 percent or greater than 130
percent of the allotment percentage of that State for the
preceding fiscal year.
``(iv) Small state minimum allotment.--Subject to clause
(iii), the Secretary shall ensure that no State shall receive
an allotment under this paragraph that is less than \3/10\ of
1 percent of the amount available under subparagraph (A).
``(2) Definitions.--For the purposes of paragraph (1), the
following definitions apply:
``(A) Allotment percentage.--The term `allotment
percentage', used with respect to fiscal year 2008 or a
subsequent fiscal year, means a percentage of the remainder
described in paragraph (1)(C)(i) that is received through an
allotment made under this subsection for the fiscal year. The
term, with respect to fiscal year 2007, means the percentage
of the amounts allotted to States under this chapter (as in
effect on the day before the date of enactment of the
Workforce Investment Improvement Act of 2007) that is
received by the State involved for fiscal year 2007.
``(B) Disadvantaged youth.--The term `disadvantaged youth'
means an individual who is age 16 through 21 who received an
income, or is a member of a family that received a total
family income, that, in relation to family size, does not
exceed the poverty line.
``(3) Special rule.--For purposes of the formulas specified
in paragraph (1)(C), the Secretary shall, as appropriate and
to the extent practicable, exclude college students and
members of the Armed Forces from the determination of the
number of disadvantaged youth.'';
(3) in subsection (c)--
(A) by amending paragraph (2) to read as follows:
``(2) Amount.--The amount available for reallotment for a
program year is equal to the amount by which the unexpended
balance at the end of the program year prior to the program
year for which the determination is made exceeds 30 percent
of the total amount of funds available to the State under
this section during such prior program year (including
amounts allotted to the State in all prior program years that
remained available). For purposes of this paragraph, the
expended balance is the amount that is the difference
between--
``(A) the total amount of funds available to the State
under this section during the program year prior to the
program year for which the determination is made (including
amounts allotted to the State in all prior program years that
remained available); and
``(B) the accrued expenditures during such prior program
year.'';
(B) in paragraph (3)--
(i) by striking ``for the prior program year'' and
inserting ``for the program year in which the determination
is made''; and
(ii) by striking ``such prior program year'' and inserting
``such program year'';
(C) by amending paragraph (4) to read as follows:
``(4) Eligibility.--For purposes of this subsection, an
eligible State means a State which does not have an amount
available for reallotment under paragraph (2) for the program
year for which the determination under paragraph (2) is
made.''; and
(D) in paragraph (5), by striking ``obligation'' and
inserting ``accrued expenditure''.
(b) Within State Allocations.--
(1) Reservation for statewide activities.--Section 128(a)
is amended to read as follows:
``(a) Reservation for Statewide Activities.--
``(1) In general.--The Governor of a State shall reserve
not more than 10 percent of the amount allotted to the State
under section 127(a)(1)(C) for a fiscal year for statewide
activities.
``(2) Use of funds.--Regardless of whether the amounts are
allotted under section 127(a)(1)(C) and reserved under
paragraph (1) or allotted under section 132 and reserved
under section 133(a), the Governor may use the reserved
amounts to carry out statewide youth activities under section
129(b) or statewide employment and training activities under
section 133.''.
(2) Within state allocations.--Section 128(b) is amended to
read as follows:
``(b) Within State Allocation.--
``(1) In general.--Of the amounts allotted to the State
under section 127(a)(1)(C) and not reserved under subsection
(a)(1)--
``(A) not less than 80 percent of such amounts shall be
allocated by the Governor to local areas in accordance with
paragraph (2); and
``(B) not more than 20 percent of such amounts shall be
allocated by the Governor to local areas in accordance with
paragraph (3).
``(2) Established formula.--
``(A) In general.--Of the amounts described in paragraph
(1)(A), the Governor shall allocate--
``(i) 33\1/3\ percent shall be allotted on the basis of the
relative number of individuals in the civilian labor force
who are ages 16 through 19 in each local area, compared to
the total number of individuals in the civilian labor force
who are ages 16 through 19 in all local areas in the State;
``(ii) 33\1/3\ percent shall be allotted on the basis of
the relative number of unemployed individuals in each local
area, compared to the total number of unemployed individuals
in all local areas in the State; and
``(iii) 33\1/3\ percent on the basis of the relative number
of disadvantaged youth who are ages 16 through 21 in each
local area, compared to the total number of disadvantaged
youth who are ages 16 through 21 in all local areas in the
State.
``(B) Minimum and maximum percentages.--The Governor shall
ensure that no local area shall receive an allocation for a
fiscal year under this paragraph that is less than 90 percent
or greater than 130 percent of the allocation percentage of
the local area for the preceding fiscal year.
``(C) Definitions.--
``(i) Allocation percentage.--For purposes of this
paragraph, the term `allocation percentage', used with
respect to fiscal year 2008 or a subsequent fiscal year,
means a percentage of the amount described in paragraph(1)(A)
that is received through an allocation made under this
paragraph for the fiscal year. The term, with respect to
fiscal year 2007, means the percentage of the amounts
allocated to local areas under this chapter (as in effect on
the day before the date of enactment of the Workforce
Investment Improvement Act of 2007) that is received by the
local area involved for fiscal year 2007.
``(ii) Disadvantaged youth.--The term `disadvantaged youth'
means an individual who is age 16 through 21 who received an
income, or is a member of a family that received a total
family income, that, in relation to family size, does not
exceed the poverty line.
``(3) Youth discretionary allocation.--The Governor shall
allocate to local areas the amounts described in paragraph
(1)(B) in accordance with such demographic and economic
factors as the Governor, after consultation with the State
board and local boards, determines are appropriate.
``(4) Local administrative cost limit.--
``(A) In general.--Of the amounts allocated to a local area
under this subsection for a fiscal year, not more than 10
percent of the amount may be used by the local boards for the
administrative costs of carrying out local workforce
investment activities under this chapter or chapter 5.
``(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may be used for
the administrative costs of any of the local workforce
investment activities described in this chapter or chapter 5,
regardless of whether the funds were allocated under this
subsection or section 133(b).''.
(3) Reallocation.--Section 128(c) (29 U.S.C. 2853(c)) is
amended--
(A) in paragraph (1), by striking ``paragraph (2)(A) or (3)
of'';
(B) by amending paragraph (2) to read as follows:
``(2) Amount.--The amount available for reallocation for a
program year is equal to the amount by which the unexpended
balance at the end of the program year prior to the program
year for which the determination is made exceeds 30 percent
of the total amount of funds available to the local area
under this section during such prior program year, (including
amounts allotted to the local area in prior program years
that remain available). For purposes of this paragraph, the
unexpended balance is the amount that is the difference
between--
``(A) the total amount of funds available to the local area
under this section during the program year prior to the
program year for which the determination is made (including
amounts allocated to the local area in all prior program
years that remained available); and
``(B) the accrued expenditures during such prior program
year.'';
(C) in paragraph (3)--
(i) by striking ``subsection (b)(3)'' the first two places
it appears and inserting ``subsection (b)'';
(ii) by striking ``the prior program year'' and inserting
``the program year in which the determination is made'';
(iii) by striking ``such prior program year'' and inserting
``such program year''; and
(iv) by striking the last sentence; and
(D) by amending paragraph (4) to read as follows:
``(4) Eligibility.--For purposes of this subsection, an
eligible local area means a local
[[Page H12308]]
area which does not have an amount available for reallocation
under paragraph (2) for the program year for which the
determination under paragraph (2) is made.''.
(c) Youth Participant Eligibility.--Section 129(a) (29
U.S.C. 2854(a)) is amended to read as follows:
``(a) Youth Participant Eligibility.--
``(1) In general.--The individuals participating in
activities carried out under this chapter by a local area
during any program year shall be individuals who, at the time
the eligibility determination is made, are--
``(A) not younger than age 16 or older than age 24; and
``(B) one or more of the following:
``(i) school dropouts;
``(ii) recipients of a secondary school diploma, General
Educational Development credential (GED), or other State-
recognized equivalent (including recognized alternative
standards for individuals with disabilities) who are
deficient in basic skills and not attending any school;
``(iii) court-involved youth attending an alternative
school;
``(iv) youth in foster care or who have been in foster
care; or
``(v) in school youth who are low-income individuals and
one or more of the following:
``(I) Deficient in literacy skills.
``(II) Homeless, runaway, or foster children.
``(III) Pregnant or parents.
``(IV) Offenders.
``(V) Individuals who require additional assistance to
complete an educational program, or to secure and hold
employment.
``(2) Priority for school dropouts.--A priority in the
provision of services under this chapter shall be given to
individuals who are school dropouts.
``(3) Limitations on activities for in-school youth.--
``(A) Percentage of funds.--For any program year, not more
than 50 percent of the funds available for statewide
activities under subsection (b), and not more than 50 percent
of funds available to local areas under subsection (c), may
be used to provide activities for in-school youth meeting the
requirements of paragraph (1)(B)(v).
``(B) Exception.--A State that receives a minimum allotment
under section 127(b)(1) in accordance with section
127(b)(1)(C)(iv) or under section 132(b)(1) in accordance
with section 132(b)(1)(B)(iv)(II) may increase the percentage
described in subparagraph (A) for a local area in the State,
if--
``(i) after an analysis of the eligible youth population in
the local area, the State determines that the local area will
be unable to use at least 50 percent of the funds available
for activities under subsection (b) or (c) to serve out-of-
school youth due to a low number of out-of-school youth; and
``(ii)(I) the State submits to the Secretary, for the local
area, a request including a proposed increased percentage for
purposes of subparagraph (A), and the summary of the eligible
youth population analysis; and
``(II) the request is approved by the Secretary.
``(C) Non-school hours required.--
``(i) In general.--Except as provided in clause (ii),
activities carried out under this chapter for in-school youth
meeting the requirements of paragraph (1)(B)(v) shall only be
carried out in non-school hours or periods when school is not
in session (such as before and after school or during
recess).
``(ii) Exception.--The requirements of clause (i) shall not
apply to activities carried out for in-school youth meeting
the requirements of paragraph (1)(B)(v) during school hours
that are part of a program that has demonstrated
effectiveness in high school youth attaining diplomas.
``(4) Consistency with compulsory school attendance laws.--
In providing assistance under this section to an individual
who is required to attend school under applicable State
compulsory school attendance laws, the priority in providing
such assistance shall be for the individual to attend school
regularly.''.
(d) Statewide Youth Activities.--Section 129(b) (29 U.S.C.
2854(b)) is amended to read as follows:
``(b) Statewide Activities.--
``(1) In general.--Funds reserved by a Governor for a State
as described in sections 128(a) and 133(a)(1) may be used for
statewide activities including--
``(A) additional assistance to local areas that have high
concentrations of eligible youth;
``(B) supporting the provision of work ready services
described in section 134(c)(2) in the one-stop delivery
system;
``(C) conducting evaluations under section 136(e) of
activities authorized under this chapter and chapter 5 in
coordination with evaluations carried out by the Secretary
under section 172, research, and demonstration projects;
``(D) providing incentive grants to local areas for
regional cooperation among local boards (including local
boards in a designated region as described in section
116(c)), for local coordination of activities carried out
under this Act, and for exemplary performance by local areas
on the local performance measures;
``(E) providing technical assistance and capacity building
to local areas, one-stop operators, one-stop partners, and
eligible providers, including the development and training of
staff, the development of exemplary program activities, and
the provision of technical assistance to local areas that
fail to meet local performance measures;
``(F) operating a fiscal and management accountability
system under section 136(f); and
``(G) carrying out monitoring and oversight of activities
under this chapter and chapter 5.
``(2) Limitation.--Not more than 5 percent of the funds
allotted under section 127(b) shall be used by the State for
administrative activities carried out under this subsection
and section 133(a).
``(3) Prohibition.--No funds described in this subsection
or in section 134(a) may be used to develop or implement
education curricula for school systems in the State.''.
(e) Local Elements and Requirements.--
(1) Program design.--Section 129(c)(1) (29 U.S.C. 2854(c)
(1)) is amended--
(A) in the matter preceding subparagraph (A), by striking
``paragraph (2)(A) or (3), as appropriate, of'';
(B) in subparagraph (B), by inserting ``are directly linked
to one or more of the performance measures relating to this
chapter under section 136, and that'' after ``for each
participant that''; and
(C) in subparagraph (C)--
(i) by redesignating clauses (i) through (iv) as clauses
(ii) through (v), respectively;
(ii) by inserting before clause (ii) (as so redesignated)
the following:
``(i) activities leading to the attainment of a secondary
school diploma, General Educational Development credential
(GED), or other State-recognized equivalent (including
recognized alternative standards for individuals with
disabilities);'';
(iii) in clause (ii) (as so redesignated), by inserting
``and advanced training'' after ``opportunities'';
(iv) in clause (iii) (as so redesignated), by inserting
``that lead to the attainment of recognized credentials''
after ``learning''; and
(v) by amending clause (v) (as so redesignated) to read as
follows:
``(v) effective connections to employers, including small
employers, in sectors of the local and regional labor markets
experiencing high growth in employment opportunities.''.
(2) Program elements.--Section 129(c)(2) (29 U.S.C.
2854(c)(2)) is amended--
(A) in subparagraph (A), by striking ``secondary school,
including dropout prevention strategies'' and inserting
``secondary school diploma, General Educational Development
credential (GED), or other State-recognized equivalent
(including recognized alternative standards for individuals
with disabilities), including dropout prevention
strategies'';
(B) in subparagraph (I), by striking ``and'' at the end;
(C) in subparagraph (J), by striking the period at the end
and inserting a semicolon; and
(D) by adding at the end the following:
``(K) on-the-job training opportunities; and
``(L) financial literacy skills.''.
(3) Additional requirements.--Section 129(c)(3)(A) (29
U.S.C. 2854(c)(3)(A)) is amended in the matter preceding
clause (i) by striking ``or applicant who meets the minimum
income criteria to be considered an eligible youth''.
(4) Priority and exceptions.--Section 129(c) (29 U.S.C.
2854(c)) is further amended--
(A) by striking paragraphs (4) and (5) and redesignating
paragraphs (6) through (8) as paragraphs (4) through (6),
respectively; and
(B) in paragraph (5) (as so redesignated), by striking
``youth councils'' and inserting ``local boards''.
SEC. 422. COMPREHENSIVE PROGRAMS FOR ADULTS.
(a) Title Amendment.--
(1) The title heading of chapter 5 is amended to read as
follows:
``CHAPTER 5--COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR
ADULTS''.
(2) Clerical amendment.--The table of contents in section
1(b) is amended by amending the item related to the heading
for chapter 5 to read as follows:
``Chapter 5--Comprehensive Employment and Training Activities for
Adults''.
(b) General Authorization.--Section 131 (29 U.S.C. 2861) is
amended--
(1) by striking ``paragraphs (1)(B) and (2)(B) of''; and
(2) by striking ``, and dislocated workers,''.
(c) State Allotments.--Section 132 (29 U.S.C. 2862) is
amended--
(1) by amending subsection (a) to read as follows:
``(a) In General.--The Secretary shall--
``(1) reserve 7.5 percent of the amount appropriated under
section 137 for a fiscal year, of which--
``(A) not less than 85 percent shall be used for national
dislocated worker grants under section 173;
``(B) not more than 10 percent may be used for
demonstration projects under section 171; and
``(C) not more than 5 percent may be used to provide
technical assistance under section 170; and
``(2) make allotments from 92.5 percent of the amount
appropriated under section 137 for a fiscal year in
accordance with subsection (b).'';
(2) by amending subsection (b) to read as follows:
``(b) Allotment Among States for Adult Employment and
Training Activities.--
``(1) Reservation for outlying areas.--
``(A) In general.--From the amount made available under
subsection (a)(2) for a fiscal
[[Page H12309]]
year, the Secretary shall reserve not more than \1/4\ of 1
percent to provide assistance to outlying areas to carry out
employment and training activities for adults and statewide
workforce investment activities.
``(B) Restriction.--The Republic of Palau shall cease to be
eligible to receive funding under this paragraph upon
entering into an agreement for extension of United States
educational assistance under the Compact of Free Association
(approved by the Compact of Free Association Amendments Act
of 2003 (Public Law 108-188)) after the date of enactment of
the Workforce Investment Improvement Act of 2007.
``(2) States.--Subject to paragraph (5), of the remainder
of the amount referred to under subsection (a)(2) for a
fiscal year that is available after determining the amount to
be reserved under paragraph (1), the Secretary shall allot to
the States for employment and training activities for adults
and for statewide workforce investment activities--
``(A) 26 percent in accordance with paragraph (3); and
``(B) 74 percent in accordance with paragraph (4).
``(3) Base formula.--
``(A) Fiscal year 2008.--
``(i) In general.--Subject to clause (ii), the amount
referred to in paragraph (2)(A) shall be allotted for fiscal
year 2008 on the basis of allotment percentage of each State
under section 6 of the Wagner-Peyser Act for fiscal year
2007.
``(ii) Excess amounts.--If the amount referred to in
paragraph (2)(A) for fiscal year 2008 exceeds the amount that
was available for allotment to the States under the Wagner-
Peyser Act for fiscal year 2007, such excess amount shall be
allotted on the basis of the relative number of individuals
in the civilian labor force in each State, compared to the
total number of individuals in the civilian labor force in
all States, adjusted to ensure that no State receives less
than \3/10\ of one percent of such excess amount.
``(iii) Definition.--For purposes of this subparagraph, the
term `allotment percentage' means the percentage of the
amounts allotted to States under section 6 of the Wagner-
Peyser Act that is received by the State involved for fiscal
year 2007.
``(B) Fiscal years 2009 and thereafter.--
``(i) In general.--Subject to clause (ii), the amount
referred to in paragraph(2)(A) shall be allotted for fiscal
year 2009 and each fiscal year thereafter on the basis of the
allotment percentage of each State under this paragraph for
the preceding fiscal year.
``(ii) Excess amounts.--If the amount referred to in
paragraph (2)(A) for fiscal year 2009 or any fiscal year
thereafter exceeds the amount that was available for
allotment under this paragraph for the prior fiscal year,
such excess amount shall be allotted on the basis of the
relative number of individuals in the civilian labor force in
each State, compared to the total number of individuals in
the civilian labor force in all States, adjusted to ensure
that no State receives less than \3/10\ of one percent of
such excess amount.
``(iii) Definition.--For purposes of this subparagraph, the
term `allotment percentage' means the percentage of the
amounts allotted to States under this paragraph in a fiscal
year that is received by the State involved for such fiscal
year.
``(4) Consolidated formula.--
``(A) In general.--Subject to subparagraphs (B) and (C), of
the amount referred to in paragraph (2)(B)--
``(i) 60 percent shall be allotted on the basis of the
relative number of unemployed individuals in each State,
compared to the total number of unemployed individuals in all
States;
``(ii) 25 percent shall be allotted on the basis of the
relative excess number of unemployed individuals in each
State, compared to the total excess number of unemployed
individuals in all States; and
``(iii) 15 percent shall be allotted on the basis of the
relative number of disadvantaged adults in each State,
compared to the total number of disadvantaged adults in all
States.
``(B) Minimum and maximum percentages.--
``(i) Minimum percentage.--The Secretary shall ensure that
no State shall receive an allotment under this paragraph for
a fiscal year that is less than 90 percent of the allotment
percentage of the State under this paragraph for the
preceding fiscal year.
``(ii) Maximum percentage.--Subject to clause (i), the
Secretary shall ensure that no State shall receive an
allotment for a fiscal year under this paragraph that is more
than 130 percent of the allotment of the State under this
paragraph for the preceding fiscal year.
``(C) Small state minimum allotment.--Subject to
subparagraph (B), the Secretary shall ensure that no State
shall receive an allotment under this paragraph that is less
than \2/10\ of 1 percent of the amount available under
subparagraph (A).
``(D) Definitions.--For the purposes of this paragraph:
``(i) Allotment percentage.--The term `allotment
percentage', used with respect to fiscal year 2008 or a
subsequent fiscal year, means a percentage of the amounts
described in paragraph (2)(B) that is received through an
allotment made under this paragraph for the fiscal year. The
term, with respect to fiscal year 2007, means the percentage
of the amounts allotted to States under this chapter (as in
effect on the day before the date of enactment of the
Workforce Investment Improvement Act of 2007) and under
reemployment service grants received by the State involved
for fiscal year 2007.
``(ii) Disadvantaged adult.--The term `disadvantaged adult'
means an individual who is age 22 through 72 who received an
income, or is a member of a family that received a total
family income, that, in relation to family size, does not
exceed the poverty line.
``(iii) Excess number.--The term `excess number' means,
used with respect to the excess number of unemployed
individuals within a State, the number that represents the
number of unemployed individuals in excess of 4\1/2\ percent
of the civilian labor force in the State.
``(5) Adjustments in allotments based on differences with
unconsolidated formulas.--
``(A) In general.--The Secretary shall ensure that for any
fiscal year no State has an allotment difference, as defined
in subparagraph (C), that is less than zero. The Secretary
shall adjust the amounts allotted to the States under this
subsection in accordance with subparagraph (B) if necessary
to carry out this subparagraph.
``(B) Adjustments in allotments.--
``(i) Redistribution of excess amounts.--
``(I) In general.--If necessary to carry out subparagraph
(A), the Secretary shall reduce the amounts that would be
allotted under paragraphs (3) and (4) to States that have an
excess allotment difference, as defined in subclause (II), by
the amount of such excess, and use such amounts to increase
the allotments to States that have an allotment difference
less than zero.
``(II) Excess amounts.--For purposes of subclause (I), the
term `excess' allotment difference means an allotment
difference for a State that is--
``(aa) in excess of 3 percent of the amount described in
subparagraph (C)(i)(II); or
``(bb) in excess of a percentage established by the
Secretary that is greater than 3 percent of the amount
described in subparagraph (C)(i)(II) if the Secretary
determines that such greater percentage is sufficient to
carry out subparagraph (A).
``(ii) Use of amounts available under national reserve
account.--If the funds available under clause (i) are
insufficient to carry out subparagraph (A), the Secretary
shall use funds reserved under section 132(a) in such amounts
as are necessary to increase the allotments to States to meet
the requirements of subparagraph (A). Such funds shall be
used in the same manner as the States use the other funds
allotted under this subsection.
``(C) Definition of allotment difference.--
``(i) In general.--For purposes of this paragraph, the term
`allotment difference' means the difference between--
``(I) the total amount a State would receive of the amounts
available for allotment under subsection (b)(2) for a fiscal
year pursuant to paragraphs (3) and (4); and
``(II) the total amount the State would receive of the
amounts available for allotment under subsection (b)(2) for
the fiscal year if such amounts were allotted pursuant to the
unconsolidated formulas (applied as described in clause
(iii)) that were used in allotting funds for fiscal year
2007.
``(ii) Unconsolidated formulas.--For purposes of clause
(i), the unconsolidated formulas are:
``(I) The requirements for the allotment of funds to the
States contained in section 132(b)(1)(B) of this Act (as in
effect on the day before the date of enactment of the
Workforce Investment Improvement Act of 2007) that were
applicable to the allotment of funds under such section for
fiscal year 2007.
``(II) The requirements for the allotment of funds to the
States contained in section 132(b)(2)(B) of this Act (as in
effect on the day before the date of enactment of the
Workforce Investment Improvement Act of 2007) that were
applicable to the allotment of funds under such section for
fiscal year 2007.
``(III) The requirements for the allotment of funds to the
States that were contained in section 6 of the Wagner-Peyser
Act (as in effect on the day before the date of enactment of
the Workforce Investment Improvement Act of 2007) that were
applicable to the allotment of funds under such Act for
fiscal year 2007.
``(IV) The requirements for the allotment of funds to the
States that were established by the Secretary for
Reemployment Services Grants that were applicable to the
allotment of funds for such grants for fiscal year 2007.
``(iii) Proportionate application of unconsolidated
formulas based on fiscal year 2007.--In calculating the
amount under clause (i)(II), each of the unconsolidated
formulas identified in clause (ii) shall be applied,
respectively, only to the proportionate share of the total
amount of funds available for allotment under subsection
(b)(2) for a fiscal year that is equal to the proportionate
share to which each of the unconsolidated formulas applied
with respect to the total amount of funds allotted to the
States under all of the unconsolidated formulas in fiscal
year 2007.
``(iv) Rule of construction.--The amounts used to adjust
the allotments to a State under subparagraph (B) for a fiscal
year shall not be included in the calculation of the amounts
under clause (i) for a subsequent fiscal year, including the
calculation of allocation percentages for a preceding fiscal
[[Page H12310]]
year applicable to paragraphs (3) and (4) and to the
unconsolidated formulas described in clause (ii).''; and
(3) in subsection (c)--
(A) by amending paragraph (2) to read as follows:
``(2) Amount.--The amount available for reallotment for a
program year is equal to the amount by which the unexpended
balance at the end of the program year prior to the program
year for which the determination is made exceeds 30 percent
of the total amount of funds available to the State under
this section during such prior program year (including
amounts allotted to the State in all prior program years that
remained available). For purposes of this paragraph, the
expended balance is the amount that is the difference
between--
``(A) the total amount of funds available to the State
under this section during the program year prior to the
program year for which the determination is made (including
amounts allotted to the State in all prior program years that
remained available); and
``(B) the accrued expenditures during such prior program
year.'';
(B) in paragraph (3)--
(i) by striking ``for the prior program year'' and
inserting ``for the program year in which the determination
is made''; and
(ii) by striking ``such prior program year'' and inserting
``such program year'';
(C) by amending paragraph (4) to read as follows:
``(4) Eligibility.--For purposes of this subsection, an
eligible State means a State that does not have an amount
available for reallotment under paragraph (2) for the program
year for which the determination under paragraph (2) is
made.''; and
(D) in paragraph (5), by striking ``obligation'' and
inserting ``accrued expenditure''.
(d) Within State Allocations.--Section 133 (29 U.S.C. 2863)
is amended--
(1) by amending subsection (a) to read as follows:
``(a) Reservation for Statewide Activities.--The Governor
of a State may reserve up to 40 percent of the total amount
allotted to the State under section 132 for a fiscal year to
carry out the statewide activities described in section
134(a).'';
(2) by amending subsection (b) to read as follows:
``(b) Allocations to Local Areas.--
``(1) In general.--Of the amounts allotted to the State
under section 132(b)(2) and not reserved under subsection
(a)--
``(A) 85 percent of such amounts shall be allocated by the
Governor to local areas in accordance with paragraph (2); and
``(B) 15 percent of such amounts shall be allocated by the
Governor to local areas in accordance with paragraph (3).
``(2) Established formula.--
``(A) In general.--Of the amounts described in paragraph
(1)(A), the Governor shall allocate--
``(i) 60 percent on the basis of the relative number of
unemployed individuals in each local area, compared to the
total number of unemployed individuals in all local areas in
the State;
``(ii) 25 percent on the basis of the relative excess
number of unemployed individuals in each local area, compared
to the total excess number of unemployed individuals in all
local areas in the State; and
``(iii) 15 percent shall be allotted on the basis of the
relative number of disadvantaged adults in each local area,
compared to the total number of disadvantaged adults in all
local areas in the State.
``(B) Minimum and maximum percentages.--The Governor shall
ensure that no local area shall receive an allocation for a
fiscal year under this paragraph that is less than 90 percent
or greater than 130 percent of the allocation percentage of
the local area for the preceding fiscal year.
``(C) Definitions.--
``(i) Allocation percentage.--The term `allocation
percentage', used with respect to fiscal year 2008 or a
subsequent fiscal year, means a percentage of the amount
described in paragraph (1)(A) that is received through an
allocation made under this paragraph for the fiscal year. The
term, with respect to fiscal year 2007, means the percentage
of the amounts allocated to local areas under this chapter
(as in effect on the day before the date of enactment of the
Workforce Investment Improvement Act of 2007) that is
received by the local area involved for fiscal year 2007.
``(ii) Disadvantaged adult.--The term `disadvantaged adult'
means an individual who is age 22 through 72 who received an
income, or is a member of a family that received a total
family income, that, in relation to family size, does not
exceed the poverty line.
``(iii) Excess number.--The term `excess number' means,
used with respect to the excess number of unemployed
individuals within a local area, the number that represents
the number of unemployed individuals in excess of 4.5 percent
of the civilian labor force in the local area.
``(3) Discretionary allocation.--The Governor shall
allocate to local areas the amounts described in paragraph
(1)(B) based on a formula developed in consultation with the
State board and local boards. Such formula shall be objective
and geographically equitable and may include such demographic
and economic factors as the Governor, after consultation with
the State board and local boards, determines are appropriate.
``(4) Local administrative cost limit.--
``(A) In general.--Of the amounts allocated to a local area
under this subsection and section 128(b) for a fiscal year,
not more than 10 percent of the amount may be used by the
local boards for the administrative costs of carrying out
local workforce investment activities under this chapter or
chapter 4.
``(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may be used for
the administrative costs of any of the local workforce
investment activities described in this chapter or chapter 4,
regardless of whether the funds were allocated under this
subsection or section 128(b).'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``paragraph (2)(A) or (3)
of'';
(B) by amending paragraph (2) to read as follows:
``(2) Amount.--The amount available for reallocation for a
program year is equal to the amount by which the unexpended
balance at the end of the program year prior to the program
year for which the determination is made exceeds 30 percent
of the total amount of funds available to the local area
under this section during such prior program year (including
amounts allotted to the local area in prior program years
that remain available). For purposes of this paragraph, the
unexpended balance is the amount that is the difference
between--
``(A) the total amount of funds available to the local area
under this section during the program year prior to the
program year for which the determination is made (including
amounts allocated to the local area in all prior program
years that remained available); and
``(B) the accrued expenditures during such prior program
year.'';
(C) by amending paragraph (3)--
(i) by striking ``subsection (b)(3)'' the first two places
it appears and inserting ``subsection (b)'';
(ii) by striking ``the prior program year'' and inserting
``the program year in which the determination is made'';
(iii) by striking ``such prior program year'' and inserting
``such program year''; and
(iv) by striking the last sentence; and
(D) by amending paragraph (4) to read as follows:
``(4) Eligibility.--For purposes of this subsection, an
eligible local area means a local area which does not have an
amount available for reallocation under paragraph (2) for the
program year for which the determination under paragraph (2)
is made.''.
(e) Use of Funds for Employment and Training Activities.--
(1) Statewide employment and training activities.--Section
134(a) (29 U.S.C. 2864(a) is amended to read as follows:
``(1) In general.--
``(A) Required use of funds.--Not less than 60 percent of
the funds reserved by a Governor under section 133(a) shall
be used to support One-Stop delivery systems and the
provision of work ready services, and, in addition, may be
used to support the provision of discretionary one-step
delivery services, in local areas, consistent with the local
plan, through one-stop delivery systems by distributing funds
to local areas in accordance with subparagraph (B). Such
funds may be used by States to employ State personnel to
provide such services in designated local areas in
consultation with local boards.
``(B) Method of distributing funds.--The method of
distributing funds under this paragraph shall be developed in
consultation with the State board and local boards. Such
method of distribution, which may include the formula
established under section 121(h)(3), shall be objective and
geographically equitable, and may include factors such as the
number of centers in the local area that have been certified,
the population served by such centers, and the performance of
such centers.
``(C) Other use of funds.--Funds reserved by a Governor for
a State--
``(i) under section 133(a) and not used under subparagraph
(A), may be used for statewide activities described in
paragraph (2); and
``(ii) under section 133(a) and not used under subparagraph
(A), and under section 128(a) may be used to carry out any of
the statewide employment and training activities described in
paragraph (3).
``(2) Statewide rapid response activities.--A State shall
carry out statewide rapid response activities using funds
reserved as described in section 133(a). Such activities
shall include--
``(A) provision of rapid response activities, carried out
in local areas by the State or by an entity designated by the
State, working in conjunction with the local boards and the
chief elected officials in the local areas; and
``(B) provision of additional assistance to local areas
that experience disasters, mass layoffs or plant closings, or
other events that precipitate substantial increases in the
number of unemployed individuals, carried out in local areas
by the State, working in conjunction with the local boards
and the chief elected officials in the local areas.
``(3) Statewide activities.--Funds reserved by a Governor
for a State as described in sections 133(a) and 128(a) may be
used for statewide activities including--
``(A) supporting the provision of work ready services
described in section 134(c)(2) in the one-stop delivery
system;
``(B) implementing innovative programs and strategies
designed to meet the needs of all businesses in the State,
including small businesses, which may include incumbent
[[Page H12311]]
worker training programs, sectoral and industry cluster
strategies and partnerships, including regional skills
alliances, sectoral skills partnerships (in which
representatives of multiple employers for a specific industry
sector or group of related occupations, economic development
agencies, providers of training services described in
subsection (d)(4), labor federations, and other entities that
can provide needed supportive services tailored to the needs
of workers in that sector or group, for a local area or
region, identify gaps between the current and expected demand
and supply of labor and skills in that sector or group for
that area or region and develop a strategic skills gap action
plan), career ladder programs, micro-enterprise and
entrepreneurial training and support programs, utilization of
effective business intermediaries, activities to improve
linkages between the one-stop delivery system in the State
and all employers (including small employers) in the State,
and other business services and strategies that better engage
employers in workforce investment activities and make the
workforce investment system more relevant to the needs of
State and local businesses, consistent with the objectives of
this title;
``(C) conducting evaluations under section 136(e) of
activities authorized under this chapter and chapter 4 in
coordination with evaluations carried out by the Secretary
under section 172, research, and demonstration projects;
``(D) providing incentive grants to local areas for
regional cooperation among local boards (including local
boards in a designated region as described in section
116(c)), for local coordination of activities carried out
under this Act, and for exemplary performance by local areas
on the local performance measures;
``(E) providing technical assistance and capacity building
to local areas, one-stop operators, one-stop partners, and
eligible providers, including the development and training of
staff, the development of exemplary program activities, and
the provision of technical assistance to local areas that
fail to meet local performance measures;
``(F) operating a fiscal and management accountability
system under section 136(f);
``(G) carrying out monitoring and oversight of activities
carried out under this chapter and chapter 4;
``(H) implementing innovative programs, such as incumbent
worker training programs, programs and strategies designed to
meet the needs of businesses in the State, including small
businesses, and engage employers in workforce activities, and
programs serving individuals with disabilities consistent
with section 188;
``(I) developing strategies for effectively serving hard-
to-serve populations and for integrating programs and
services among one-stop partners; and
``(J) carrying out activities to facilitate remote access
to services provided through a one-stop delivery system,
including facilitating access through the use of technology.
``(4) Limitation.--Not more than 5 percent of the funds
allotted under section 132(b) shall be used by the State for
administrative activities carried out under this subsection
and section 128(a).''.
(2) Local employment and training activities.--Section
134(b) (29 U.S.C. 2864(b)) is amended--
(A) by striking ``under paragraph (2)(A)'' and all that
follows through ``section 133(b)(2)(B)'' and inserting
``under section 133(b)''; and
(B) in paragraphs (1) and (2), by striking ``or dislocated
workers, respectively''.
(3) Technical amendment.--Section 134 is further amended by
redesignating subsections (d) and (e) as subsections (c) and
(d), respectively.
(4) Required local employment and training activities.--
(A) Allocated funds.--Section 134(c)(1) (29 U.S.C.
2864(c)(1)) (as redesignated by paragraph (3)) is amended to
read as follows:
``(1) In general.--Funds allocated to a local area for
adults under section 133(b) shall be used--
``(A) to establish a one-stop delivery system as described
in section 121(e);
``(B) to provide the work ready services described in
paragraph (2) through the one-stop delivery system in
accordance with such paragraph;
``(C) to provide training services described in paragraph
(4) to adults described in such paragraph; and
``(D) to designate a dedicated business liaison in the
local area who may be funded with funds provided under this
title or from other sources to establish and develop
relationships and networks with large and small employers and
their intermediaries.''.
(B) Work ready services.--Section 134(c)(2) (29 U.S.C.
2864(c)(2)) (as redesignated by paragraph (3)) is amended----
(i) in the heading, by striking ``core services'' and
inserting ``work ready services'';
(ii) by striking ``core services'' and inserting ``work
ready services'';
(iii) by striking ``paragraph (1)(A)'' and inserting
``paragraph (1)(A)(i)'';
(iv) by striking ``who are adults or dislocated workers'';
(v) in subparagraph (A), by inserting ``and assistance in
obtaining eligibility determinations under the other one-stop
partner programs through such activities as assisting in the
submission of applications, the provision of information on
the results of such applications, the provision of intake
services and information, and, where appropriate and
consistent with the authorizing statute of the one-stop
partner program, determinations of eligibility'' after
``subtitle'';
(vi) by amending subparagraph (D) to read as follows:
``(D) labor exchange services, including--
``(i) job search and placement assistance, and where
appropriate career counseling;
``(ii) appropriate recruitment services for employers,
including small employers, in the local area, which may
include services described in this subsection, including
information and referral to specialized business services not
traditionally offered through the one-stop delivery system;
and
``(iii) reemployment services provided to unemployment
claimants, including claimants identified as in need of such
services under the worker profiling system established under
section 303(j) of the Social Security Act (42 U.S.C.
503(j));'';
(vii) in subparagraph (I), by inserting ``and the
administration of the work test for the unemployment
compensation system'' after ``compensation''; and
(viii) by striking subparagraph (H) and inserting the
following:
``(H) provision of accurate information, in formats that
are usable and understandable to all one-stop center
customers, relating to the availability of supportive
services or assistance, including child care, child support,
medical or child health assistance under title XIX or XXI of
the Social Security Act (42 U.S.C. 1396 et seq. and 1397aa et
seq.), benefits under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.), the earned income tax credit under section 32
of the Internal Revenue Code of 1986, and assistance under a
State program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) and other supportive
services and transportation provided through funds made
available under such part, available in the local area, and
referral to such services or assistance as appropriate;'';
and
(ix) by amending subparagraph (J) to read as follows:
``(J) assistance in establishing eligibility for programs
of financial aid assistance for training and education
programs that are not funded under this Act and are available
in the local area; and''; and
(x) by redesignating subparagraph (K) as subparagraph (M);
and
(xi) by inserting the following new subparagraphs after
subparagraph (J)):
``(K) the provision of information from official
publications of the Internal Revenue Service, regarding
federal tax credits available to individuals relating to
education, job training and employment, including the Hope
Scholarship Credit and the Lifetime Learning Credit (26
U.S.C. 25A), and the Earned Income Tax Credit (26 U.S.C. 32);
``(L) services relating to the Work Opportunity Tax Credit
(26 U.S.C. 51);
``(M) comprehensive and specialized assessments of the
skill levels and service needs of adults and dislocated
workers, which may include--
``(i) diagnostic testing and use of other assessment tools;
and
``(ii) in-depth interviewing and evaluation to identify
employment barriers and appropriate employment goals;
``(N) development of an individual employment plan, to
identify the employment goals, appropriate achievement
objectives, and appropriate combination of services for the
participation to achieve the employment goals;
``(O) group counseling;
``(P) individual counseling and career planning;
``(Q) case management;
``(R) short-term prevocational services, including
development of learning skills, communications skills,
interviewing skills, punctuality, personal maintenance
skills, and professional conduct, to prepare individuals for
unsubsidized employment or training;
``(S) internships and work experience;
``(T) literacy activities relating to basic work readiness,
information and communication technology literacy activities,
and financial literacy activities, if such activities are not
available to participants in the local area under programs
administered under the Adult Education and Family Literacy
Act (20 U.S.C. 2901 et seq.); and
``(U) out-of-area job search assistance and relocation
assistance.''.
(C) Delivery of services.--Section 134(c)(3) (29 U.S.C.
2864(c)(3) (as redesignated by paragraph (3) of this
subsection) is amended to read as follows:
``(3) Delivery of services.--The work ready services
described in paragraph (M) through (U) shall be provided
through the one-stop delivery system and may be provided
through contracts with public, private for-profit, and
private nonprofit service providers, approved by the local
board.''.
(D) Training services.--Section 134(c)(4) (as redesignated
by paragraph (3) of this subsection) is amended--
(i) by amending subparagraph (A) to read as follows:
``(A) In general.--Funds allocated to a local area under
section 133(b) shall be used to provide training services to
adults who--
``(i) after an interview, evaluation, or assessment, and
case management, have been determined by a one-stop operator
or one-stop partner, as appropriate, to--
``(I) be in need of training services to obtain or retain
suitable employment; and
``(II) have the skills and qualifications to successfully
participate in the selected program of training services;
[[Page H12312]]
``(ii) select programs of training services that are
directly linked to the employment opportunities in the local
area involved or in another area in which the adults
receiving such services are willing to commute or relocate;
``(iii) who meet the requirements of subparagraph (B); and
``(iv) who are determined eligible in accordance with the
priority system in effect under subparagraph (E).'';
(ii) in subparagraph (B)(i), by striking ``Except'' and
inserting ``Notwithstanding section 479B of the Higher
Education Act of 1965 (20 U.S.C. 1087uu) and except'';
(iii) by amending subparagraph (D) to read as follows:
``(D) Training services.--Training services authorized
under this paragraph may include--
``(i) occupational skills training;
``(ii) on-the-job training;
``(iii) skill upgrading and retraining;
``(iv) entrepreneurial training;
``(v) education activities leading to a high school diploma
or its equivalent, including a General Educational
Development credential, in combination with, concurrently or
subsequently, occupational skills training;
``(vi) adult education and literacy activities provided in
conjunction with other training authorized under this
subparagraph;
``(vii) workplace training combined with related
instruction; and
``(viii) occupational skills training that incorporates
English language acquisition.'';
(iv) by amending subparagraph (E) to read as follows:
``(E) Priority.--
``(i) In general.--A priority shall be given to unemployed
individuals and employed workers who need training services
to retain employment or to advance in a career for the
provision of intensive and training services under this
subsection.
``(ii) Determinations.--The Governor and the appropriate
local board shall direct the one-stop operators in the local
area with regard to making determinations with respect to the
priority of service under this subparagraph.'';
(v) in subparagraph (F), by striking clause (iii) and
inserting the following:
``(iii) Career enhancement accounts.--An individual who
seeks training services and who is eligible pursuant to
subparagraph (A), may, in consultation with a case manager,
select an eligible provider of training services from the
list or identifying information for providers described in
clause (ii)(I). Upon such selection, the one-stop operator
involved shall, to the extent practicable, refer such
individual to the eligible provider of training services, and
arrange for payment for such services through a career
enhancement account.
``(iv) Coordination.--Each local board may, through one-
stop centers, coordinate career enhancement accounts with
other Federal, State, local, or private job training programs
or sources to assist the individual in obtaining training
services.
``(v) Enhanced career enhancement accounts.--Each local
board may, through one-stop centers, assist individuals
receiving career enhancement accounts through the
establishment of such accounts that include, in addition to
the funds provided under this paragraph, funds from other
programs and sources that will assist the individual in
obtaining training services.''; and
(vi) in subparagraph (G)--
(I) in the subparagraph heading, by striking ``individual
training accounts'' and inserting ``career enhancement
accounts'';
(II) in clause (i) by striking ``individual training
accounts'' and inserting ``career enhancement accounts'';
(III) in clause (ii)--
(aa) by striking ``an individual training account'' and
inserting ``a career enhancement account'';
(bb) in subclause (II), by striking ``individual training
accounts'' and inserting ``career enhancement accounts'';
(cc) in subclause (II) by striking ``or'' after the
semicolon;
(dd) in subclause (III) by striking the period and
inserting ``; or''; and
(ee) by adding at the end of the following:
``(IV) The local board determines that it would be most
appropriate to award a contract to an institution of higher
education in order to facilitate the training of multiple
individuals in high-demand occupations, if such contract does
not limit customer choice.''.
(IV) in clause (iv)--
(aa) by redesignating subclause (IV) as subclause (V) and
inserting after subclause (III) the following:
``(IV) Individuals with disabilities.''.
(5) Permissible activities.--Section 134(d) (as
redesignated by paragraph (3)) is amended--
(A) by amending paragraph (1) to read as follows:
``(1) Discretionary one-stop delivery activities.--
``(A) In general.--Funds allocated to a local area under
section 133(b) may be used to provide, through the one-stop
delivery system--
``(i) customized screening and referral of qualified
participants in training services to employers;
``(ii) customized employment-related services to employers
on a fee-for-service basis;
``(iii) customer support to navigate among multiple
services and activities for special participant populations
that face multiple barriers to employment, including
individuals with disabilities;
``(iv) employment and training assistance provided in
coordination with child support enforcement activities of the
State agency carrying out subtitle D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.);
``(v) activities to improve services to local employers,
including small employers in the local area, and increase
linkages between the local workforce investment system and
employers;
``(vi) activities to facilitate remote access to services
provided through a one-stop delivery system, including
facilitating access through the use of technology; and
``(vii) activities to carry out business services and
strategies that meet the workforce investment needs of local
area employers, as determined by the local board, consistent
with the local plan under section 118, which services--
``(I) may be provided through effective business
intermediaries working in conjunction with the local board,
and may also be provided on a fee-for-service basis or
through the leveraging of economic development and other
resources as determined appropriate by the local board; and
``(II) may include--
``(aa) identifying and disseminating to business,
educators, and job seekers, information related to the
workforce, economic and community development needs, and
opportunities of the local economy;
``(bb) development and delivery of innovative workforce
investment services and strategies for area businesses, which
may include sectoral, industry cluster, regional skills
alliances, career ladder, skills upgrading, skill standard
development and certification, apprenticeship, and other
effective initiatives for meeting the workforce investment
needs of area employers and workers;
``(cc) participation in seminars and classes offered in
partnership with relevant organizations focusing on the
workforce-related needs of area employers and job seekers;
``(dd) training consulting, needs analysis, and brokering
services for area businesses, including the organization and
aggregation of training (which may be paid for with funds
other than those provided under this title), for individual
employers and coalitions of employers with similar interests,
products, or workforce needs;
``(ee) assistance to area employers in the aversion of
layoffs and in managing reductions in force in coordination
with rapid response activities;
``(ff) the marketing of business services offered under
this title, to appropriate area employers, including small
and mid-sized employers;
``(gg) information referral on concerns affecting local
employers; and
``(hh) other business services and strategies designed to
better engage employers in workforce investment activities
and to make the workforce investment system more relevant to
the workforce investment needs of area businesses, as
determined by the local board to be consistent with the
objectives of this title.
``(B) Work support activities for low-wage workers.--
``(i) In general.--Funds allocated to a local area under
133(b) may be used to provide, through the one-stop delivery
system and in collaboration with the appropriate programs and
resources of the one-stop partners, work support activities
designed to assist low-wage workers in retaining and
enhancing employment. The one stop partners shall coordinate
the appropriate programs and resources of the partners with
the activities and resources provided under this
subparagraph.
``(ii) Activities.--The activities described in clause (i)
may include assistance in accessing financial supports for
which such workers may be eligible and the provision of
activities available through the one-stop delivery system in
a manner that enhances the opportunities of such workers to
participate, such as the provision of employment and training
activities during nontraditional hours and the provision of
on-site child care while such activities are being
provided.''; and
(B) by adding after paragraph (3) the following new
paragraph:
``(4) Incumbent worker training programs.--
``(A) In general.--The local board may use up to 10 percent
of the funds allocated to a local area under section 133(b)
to carry out incumbent worker training programs in accordance
with this paragraph.
``(B) Training activities.--The training programs for
incumbent workers under this paragraph shall be carried out
by the local area in conjunction with the employers of such
workers for the purpose of assisting such workers in
obtaining the skills necessary to retain employment and avert
layoffs.
``(C) Employer match required.--
``(i) In general.--Employers participating in programs
under this paragraph shall be required to pay a proportion of
the costs of providing the training to the incumbent workers
of the employers. The State board, in consultation with the
local board as appropriate, shall establish the required
portion of such costs, which may include in-kind
contributions. The required portion shall not be less than--
``(I) 10 percent of the costs, for employers with 50 or
fewer employees;
[[Page H12313]]
``(II) 25 percent of the costs, for employers with more
than 50 employees but fewer than 100 employees; and
``(III) 50 percent of the costs, for employers with 100 or
more employees.
``(ii) Calculation of match.--The wages paid by an employer
to a worker while they are attending training may be included
as part of the requirement payment of the employer.''.
SEC. 423. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) State Performance Measures.--
(1) In general.--Section 136(b)(1) (29 U.S.C. 2871(b)(1))
is amended--
(A) in subparagraph (A)(i), by striking ``and the customer
satisfaction indicator of performance described in paragraph
(2)(B)''; and
(B) in subparagraph (A)(ii), by striking ``paragraph
(2)(C)'' and inserting ``paragraph (2)(B)''.
(2) Indicators of performance.--Section 136(b)(2) (29
U.S.C. 2871(b)(2)) is amended--
(A) in subparagraph (A)(i)--
(i) by striking ``(except for self-service and information
activities) and (for participants who are eligible youth age
19 through 21) for youth activities authorized under section
129'';
(ii) in subclause (II), by striking ``6 months after entry
into the employment'' and inserting ``and'' after the
semicolon; and
(iii) by striking subclause (III), and inserting the
following:
``(III) average earnings from unsubsidized employment.'';
(B) by striking subclause (IV) of subparagraph (A)(i);
(C) by amending subparagraph (A)(ii) to read as follows:
``(ii) Core indicators for eligible youth.--The core
indicators of performance for youth activities authorized
under section 129 shall consist of--
``(I) entry into employment, education or advanced
training, or military service;
``(II) attainment of secondary school diploma, General
Educational Development credential (GED), or other State-
recognized equivalent or certificate (including recognized
alternative standards for individuals with disabilities); and
``(III) literacy or numeracy gains.'';
(D) by striking subparagraph (B); and
(E) by redesignating subparagraph (C) as subparagraph (B),
and by adding at the end of such subparagraph the following
new sentence: ``Such indicators may include customer
satisfaction of employers and participants with services
received from the workforce investment activities authorized
under this subtitle.''.
(3) Levels of performance.--Section 136(b)(3)(A) (29 U.S.C.
2871(b)(3)(A)) is amended--
(A) in clause (i), by striking ``and the customer
satisfaction indicator described in paragraph (2)(B)'';
(B) in clause (ii), by striking ``and the customer
satisfaction indicator of performance, for the first 3'' and
inserting ``for the 2'';
(C) in clause (iii)--
(i) in the heading, by striking ``FOR FIRST 3 YEARS''; and
(ii) by striking ``and the customer satisfaction indicator
of performance, for the first 3'' and inserting ``for the
2'';
(D) in clause (iv)--
(i) by striking subclause (I);
(ii) by redesignating subclauses (II) and (III) as
subclauses (I) and (II), respectively; and
(iii) in subclause (I) (as so redesignated)--
(I) by striking ``taking into account'' and inserting
``which shall be adjusted based on'';
(II) by inserting ``, such as unemployment rates and job
losses or gains in particular industries'' after ``economic
conditions''; and
(III) by inserting ``, such as indicators of poor work
history, lack of work experience, dislocation from high-wage
employment, low levels of literacy or English proficiency,
disability status, including the number of veterans with
disabilities, and welfare dependency'' after ``program'';
(E) by striking clause (v) and redesignating clause (vi) as
clause (v).
(4) Additional indicators.--Section 136(b)(3)(B) is amended
by striking ``paragraph (2)(C)'' and inserting ``paragraph
(2)(B)''.
(b) Local Performance Measures.--Section 136(c) (29 U.S.C.
2871(c)) is amended--
(1) in paragraph (1)(A)(i), by striking ``, and the
customer satisfaction indicator of performance described in
subsection (b)(2)(B),'';
(2) in paragraph (1)(A)(ii), by striking ``subsection
(b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
(3) by amending paragraph (3) to read as follows:
``(3) Determinations.--In determining such local levels of
performance, the local board, the chief elected official, and
the Governor shall ensure such levels are adjusted based on
the specific economic characteristics (such as unemployment
rates and job losses or gains in particular industries),
demographic characteristics, or other characteristics of the
population to be served in the local area, such as poor work
history, lack of work experience, dislocation from high-wage
employment, low levels of literacy or English proficiency,
disability status, including the number of veterans with
disabilities, and welfare dependency.''.
(c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is
amended--
(1) in paragraph (1), by striking ``and the customer
satisfaction indicator'' in both places that it appears;
(2) in paragraph (2)--
(A) in subparagraph (E), by striking ``(excluding
participants who received only self-service and informational
activities); and'' and inserting a semicolon;
(B) in subparagraph (F), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(G) the number of participants who have received services
other than followup services, authorized under this title, in
the form of work ready services described in section
134(d)(2), and training services described in section
134(d)(4), respectively;
``(H) the number of participants who have received followup
services authorized under this title; and
``(I) the cost per participant for services authorized
under this title.''; and
(3) by adding at the end the following:
``(4) Data validation.--In preparing the reports described
in this subsection, the States shall establish procedures,
consistent with guidelines issued by the Secretary, to ensure
the information contained in the report is valid and
reliable.''.
(d) Sanctions for State.--Section 136(g) (29 U.S.C.
2871(g)) is amended--
(1) in paragraph (1)(A), by striking ``or (B)''; and
(2) in paragraph (2), by striking ``section 503'' and
inserting ``section 136(i)''.
(e) Sanctions for Local Areas.--Section 136(h) (29 U.S.C.
2871(h)) is amended--
(1) in paragraph (1), by striking ``or (B)''; and
(2) by amending paragraph (2)(B) to read as follows:
``(B) Appeal to governor.--A local area that is subject to
a reorganization plan under subparagraph (A) may, not later
than 30 days after receiving notice of the reorganization
plan, appeal to the Governor to rescind or revise such plan.
In such case, the Governor shall make a final decision not
later than 30 days after the receipt of the appeal.''.
(f) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i))
is amended to read as follows:
``(i) Incentive Grants for States and Local Areas.--
``(1) Incentive grants for states.--
``(A) In general.--From funds appropriated under section
174, the Secretary may award incentive grants to States for
exemplary performance in carrying programs under chapters 4
and 5 of this title. Such awards may be based on States
meeting or exceeding the performance measures established
under this section, on the performance of the State in
serving special populations, including the levels of service
provided and the performance outcomes, and such other factors
relating to the performance of the State under this title as
the Secretary determines is appropriate.
``(B) Use of funds.--The funds awarded to a State under
this paragraph may be used to carry out any activities
authorized under chapters 4 and 5 of this title, including--
``(i) activities that provide technical assistance to local
areas to replicate best practices for workforce and education
programs;
``(ii) activities that support the needs of businesses,
especially for incumbent workers and enhancing opportunities
for retention and advancement;
``(iii) activities that support linkages between the
workforce and education programs, and secondary,
postsecondary, or career and technical education programs,
including activities under the Carl D. Perkins Career and
Technical Education Act (20 U.S.C. 2301 et seq.), the Adult
Education and Family Literacy Act (20 U.S.C. 9201 et seq.),
and the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
``(iv) activities that support regional economic
development plans that support high-wage, high-skill, or
high-demand occupations leading to self-sufficiency;
``(v) activities that coordinate the workforce and
education programs with other Federal and State programs
related to the workforce and education programs;
``(vi) activities that support the development of an
integrated performance information system that includes
common measures for one-stop partner programs described in
section 121;
``(vii) activities that support activities to improve
performance in workforce and education programs and program
coordination of workforce and education programs; or
``(viii) activities that leverage additional training
resources, other than those provided through workforce and
education programs, for adults and youth.
``(2) Incentive grants for local areas.--
``(A) In general.--From funds reserved under sections
128(a) and 133(a), the Governor may award incentive grants to
local areas for exemplary performance with respect to the
measures established under this section and with the
performance of the local area in serving special populations,
including the levels of service and the performance outcomes.
``(B) Use of funds.--The funds awarded to a local area may
be used to carry out activities authorized for local areas
under chapters 4 and 5 of this title, the Adult Education and
Family Literacy Act, and the Rehabilitation Act of 1973
(referred to in this subsection as `workforce and education
programs'), and such innovative projects or programs that
increase coordination and enhance service to participants in
such programs, particularly hard-to-serve populations, as may
be approved by the Governor, including--
[[Page H12314]]
``(i) activities that support the needs of businesses,
especially for incumbent workers and enhancing opportunities
for retention and advancement;
``(ii) activities that support linkages between the
workforce and education programs, and secondary,
postsecondary, or career and technical education programs,
including activities under the Carl D. Perkins Career and
Technical Education Act (20 U.S.C. 2301 et seq.), the Adult
Education and Family Literacy Act (20 U.S.C. 9201 et seq.),
and the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
``(iii) activities that support regional economic
development plans that support high-wage, high-skill, or
high-demand occupations leading to self-sufficiency;
``(iv) activities that coordinate the workforce and
education programs with other Federal and State programs
related to the workforce and education programs;
``(v) activities that support the development of an
integrated performance information system that includes
common measures for one-stop partner programs described in
section 121;
``(vi) activities that support activities to improve
performance in workforce and education programs and program
coordination of workforce and education programs; or
``(vii) activities that leverage additional training
resources, other than those provided through workforce and
education programs, for adults and youth.''.
(g) Use of Core Indicators for Other Programs.--Section 136
(29 U.S.C. 2871) is further amended by adding at the end the
following subsection:
``(j) Use of Core Indicators for Other Programs.--In
addition to the programs carried out under chapters 4 and 5,
and consistent with the requirements of the applicable
authorizing laws, the Secretary shall use the core indicators
of performance described in subsection (b)(2)(A) to assess
the effectiveness of the programs described under section
121(b)(1)(B) that are carried out by the Secretary.''.
(h) Repeal of Definitions.--Sections 502 and 503 (and the
items related to such sections in the table of contents) are
repealed.
SEC. 424. AUTHORIZATION OF APPROPRIATIONS.
(a) Youth Activities.--Section 137(a) (29 U.S.C. 2872(a))
is amended by striking ``such sums as may be necessary for
each of fiscal years 1999 through 2003'' and inserting ``such
sums as may be necessary for each of fiscal year 2008 through
2012''.
(b) Adult Employment and Training Activities.--Section
137(b) (29 U.S.C. 2872(b)) is amended by striking ``section
132(a)(1), such sums as may be necessary for each of fiscal
years 1999 through 2003'' and inserting ``section 132(a),
such sums as may be necessary for each of fiscal years 2008
through 2012''.
(c) Dislocated Worker Employment and Training Activities.--
Section 137 is further amended by striking subsection (c).
SEC. 425. JOB CORPS.
(a) Program Activities.--Section 148(a) is amended by
striking paragraph (1) and inserting the following:
``(1) In general.--Each Job Corps Center shall provide
enrollees with an intensive, well organized, and fully
supervised program of education, career training, work
experience, recreational activities, physical rehabilitation
and development, and counseling. Each Job Corps center shall
provide enrollees assigned to the center with access to work
ready services described in section 134(c)(2).''.
(b) Industry Councils.--Section 154(b) (29 U.S.C. 2894(b))
is amended--
(1) in paragraph (1)(A), by striking ``local and distant'';
and
(2) by adding after paragraph (2) the following:
``(3) Employers outside of local areas.--The industry
council may include, or otherwise provide for consultation
with, employers from outside the local area who are likely to
hire a significant number of enrollees from the Job Corps
center.
``(4) Special rule for single local area states.--In the
case of a single local area State designated under section
116(b), the industry council shall include a representative
of the State Board.''.
(c) Indicators of Performance and Additional Information.--
Section 159(c) (29 U.S.C. 2893(c)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Core indicators.--The Secretary shall annually
establish expected levels of performance for Job Corps
centers and the Job Corps program relating to each of the
following core indicators of performance for youth--
``(A) entry into education, employment, military service or
advanced training;
``(B) attainment of a secondary school diploma, General
Educational Development credential (GED), or other State-
recognized equivalent; and
``(C) literacy or numeracy gains.''; and
(2) in paragraph (2), by striking ``measures'' each place
it appears and inserting ``indicators''.
(d) Authorization of Appropriations.--Section 161 (29
U.S.C. 2901) is amended by striking ``1999 through 2003'' and
inserting ``2008 through 2012''.
(e) Repeal of Requirement Relating to Federal
Administration.--Section 102 of the Departments of Labor,
Health and Human Services, and Education, and Related
Agencies Appropriations Act, 2006 (Public Law 109-149) is
repealed.
SEC. 426. NATIVE AMERICAN PROGRAMS.
(a) Advisory Council.--Section 166(h)(4)(C) (29 U.S.C.
2911(h)(4)(C)) is amended to read as follows:
``(C) Duties.--The Council shall advise the Secretary on
the operation and administration of the programs assisted
under this section.''.
(b) Assistance to American Samoans in Hawaii.--Section 166
(29 U.S.C. 2911) is further amended by striking subsection
(j).
SEC. 427. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.
Section 167(d) is amended by inserting ``(including
permanent housing)'' after ``housing''.
SEC. 428. VETERANS' WORKFORCE INVESTMENT PROGRAMS.
Section 168(a)(3)(C) (29 U.S.C. 2913 (a)(3)(C)) is amended
by striking ``section 134(c)'' and inserting ``section
121(e)''.
SEC. 429. YOUTH CHALLENGE GRANTS.
(a) In General.--Section 169 (29 U.S.C. 2914) is amended to
read as follows:
``SEC. 169. YOUTH CHALLENGE GRANTS.
``(a) In General.--Of the amounts reserved by the Secretary
under section 127(a)(1)(A) for a fiscal year--
``(1) the Secretary shall use not less than 80 percent to
award competitive grants under subsection (b); and
``(2) the Secretary may use not more than 20 percent to
award discretionary grants under subsection (c).
``(b) Competitive Grants to States and Local Areas.--
``(1) Establishment.--From the funds described in
subsection (a)(1), the Secretary shall award competitive
grants to eligible entities to carry out activities
authorized under this section to assist eligible youth in
acquiring the skills, credentials and employment experience
necessary to succeed in the labor market.
``(2) Eligible entities.--Grants under this subsection may
be awarded to States, local boards, recipients of grants
under section 166 (relating to Native American programs), and
public or private entities (including consortia of such
entities) applying in conjunction with local boards.
``(3) Grant period.--The Secretary may make a grant under
this section for a period of 1 year and may renew the grants
for each of the 4 succeeding years.
``(4) Authority to require match.--The Secretary may
require that grantees under this subsection provide a non-
Federal share of the cost of activities carried out under a
grant awarded under this subsection.
``(5) Participant eligibility.--Youth ages 14 through 19 as
of the time the eligibility determination is made may be
eligible to participate in activities provided under this
subsection.
``(6) Use of funds.--Funds under this subsection may be
used for activities that are designed to assist youth in
acquiring the skills, credentials and employment experience
that are necessary to succeed in the labor market, including
the activities identified in section 129. The activities may
include activities such as--
``(A) training and internships for out-of-school youth in
sectors of the economy experiencing or projected to
experience high growth;
``(B) after-school dropout prevention activities for in-
school youth;
``(C) activities designed to assist special youth
populations, such as court-involved youth and youth with
disabilities; and
``(D) activities combining remediation of academic skills,
work readiness training, and work experience, and including
linkages to postsecondary education, apprenticeships, and
career-ladder employment.
``(7) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require,
including--
``(A) a description of the activities the eligible entity
will provide to eligible youth under this subsection and how
the eligible entity will collaborate with State and local
workforce investment systems established under this title in
the provisions of such activities;
``(B) a description of the programs of demonstrated
effectiveness on which the provision of the activities under
subparagraph (A) are based, and a description of how such
activities will expand the base of knowledge relating to the
provision of activities for youth;
``(C) a description of the private and public, and local
and State resources that will be leveraged to provide the
activities described under subparagraph (A) in addition to
the funds provided under this subsection and a description of
the extent of the involvement of employers in the activities;
and
``(D) the levels of performance the eligible entity expects
to achieve with respect to the indicators of performance for
youth specified in section 136(b)(2)(A)(ii).
``(8) Factors for award.--
``(A) In general.--In awarding grants under this subsection
the Secretary shall consider--
``(i) the quality of the proposed activities;
``(ii) the goals to be achieved;
``(iii) the likelihood of successful implementation;
``(iv) the extent to which the proposed activities are
based on proven strategies or the extent to which the
proposed activities will expand the base of knowledge
relating to the provision of activities for eligible youth;
[[Page H12315]]
``(v) the extent of collaboration with the State and local
workforce investment systems in carrying out the proposed
activities;
``(vi) the extent of employer involvement in the proposed
activities;
``(vii) whether there are other Federal and non-Federal
funds available for similar activities to the proposed
activities, and the additional State, local, and private
resources that will be provided to carry out the proposed
activities;
``(viii) the quality of the proposed activities in meeting
the needs of the eligible youth to be served; and
``(ix) the extent to which the proposed activities will
expand on services provided under section 127.
``(B) Equitable geographic distribution.--In awarding
grants under this subsection the Secretary shall ensure an
equitable distribution of such grants across geographically
diverse areas.
``(9) Evaluation.--The Secretary may reserve up to 5
percent of the funds described in subsection(a)(1) to provide
technical assistance to, and conduct evaluations of the
projects funded under this subsection (using appropriate
techniques as described in section 172(c)).
``(c) Discretionary Grants for Youth Activities.--
``(1) In general.--From the funds described in
subsection(a)(2), the Secretary may award grants to eligible
entities to provide activities that will assist youth in
preparing for, and entering and retaining, employment.
``(2) Eligible entities.--Grants under this subsection may
be awarded to public or private entities that the Secretary
determines would effectively carry out activities relating to
youth under this subsection.
``(3) Participant eligibility.--Youth ages 14 through 19 at
the time the eligibility determination is made may be
eligible to participate in activities under this subsection.
``(4) Use of funds.--Funds provided under this subsection
may be used for activities that will assist youth in
preparing for, and entering and retaining, employment,
including the activities described in section 129 for out-of-
school youth, activities designed to assist in-school youth
to stay in school and gain work experience, and such other
activities that the Secretary determines are appropriate.
``(5) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
``(6) Additional requirements.--The Secretary may require
the provision of a non-Federal share for projects funded
under this subsection and may require participation of
grantees in evaluations of such projects, including
evaluations using the techniques as described in section
172(c).''.
(b) Clerical Amendment.--The table of contents in section
1(b) is amended by amending the item related to section 169
to read as follows:
``Sec. 169. Youth challenge grants.''.
SEC. 430. TECHNICAL ASSISTANCE.
Section 170 (29 U.S.C. 2915) is amended--
(1) by striking subsection (b);
(2) by striking
``(a) General Technical Assistance.--'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c) respectively, and moving such
subsections 2 ems to the left;
(4) in subsection (a) (as redesignated by paragraph (3))--
(A) by inserting ``the training of staff providing rapid
response services, the training of other staff of recipients
of funds under this title, peer review activities under this
title, assistance regarding accounting and program operation
practices (when such assistance would not be duplicative to
assistance provided by the State), technical assistance to
States that do not meet State performance measures described
in section 136,'' after ``localities,''; and
(B) by striking ``from carrying out activities'' and all
that follows up to the period and inserting ``to implement
the amendments made by the Workforce Investment Improvement
Act of 2007''; and
(5) by inserting, after subsection (c) (as redesignated by
paragraph (3)), the following:
``(d) Best Practices Coordination.--The Secretary shall--
``(1) establish a system through which States may share
information regarding best practices with regard to the
operation of workforce investment activities under this Act;
``(2) evaluate and disseminate information regarding best
practices and identify knowledge gaps; and
``(3) commission research under section 171(c) to address
knowledge gaps identified under paragraph (2).''.
SEC. 431. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH AND
MULTI-STATE PROJECTS.
(a) Demonstration and Pilot Projects.--Section 171(b) (29
U.S.C. 2916(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``Under a'' and inserting ``Consistent with
the priorities specified in the'';
(B) by amending subparagraphs (A) through (D) to read as
follows:
``(A) projects that assist national employers in connecting
with the workforce investment system established under this
title in order to facilitate the recruitment and employment
of needed workers and to provide information to such system
on skills and occupations in demand;
``(B) projects that promote the development of systems that
will improve the effectiveness and efficiency of programs
carried out under this title;
``(C) projects that focus on opportunities for employment
in industries and sectors of industries that are experiencing
or are likely to experience high rates of growth, including
those relating to information technology;
``(D) projects carried out by States and local areas to
test innovative approaches to delivering employment-related
services;'';
(C) by striking subparagraph (E);
(D) by redesignating subparagraphs (F) and (G) as
subparagraphs (E) and (F), respectively;
(E) in subparagraph (F) (as so redesignated, by striking
``; and'' and inserting a semicolon;
(F) by inserting after subparagraph (F) (as so
redesignated) the following:
``(G) projects carried out by States and local areas to
assist adults or out of school youth in starting a small
business, including training and assistance in business or
financial management or in developing other skills necessary
to operate a business;''; and
(G) by amending subparagraph (H) to read as follows:
``(H) projects that focus on opportunities for employment
in industries and sectors of industries that are being
transformed by technology and innovation requiring new
knowledge or skill sets for workers, including advanced
manufacturing; and''; and
(2) in paragraph (2)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as subparagraph (B).
(b) Multiservice Projects.--Section 171(c)(2)(B) (29 U.S.C.
2916(c)(2)(B)) is amended to read as follows:
``(B) Net impact studies and reports.--The Secretary shall
conduct studies to determine the net impacts of programs,
services, and activities carried out under this title. The
Secretary shall prepare and disseminate to Congress and the
public reports containing the results of such studies.''.
SEC. 432. COMMUNITY-BASED JOB TRAINING.
Section 171(d) is amended to read as follows:
``(d) Community-Based Job Training.--
``(1) Demonstration project.--In addition to the
demonstration projects under subsection (b), the Secretary
may establish and implement a national demonstration project
designed to develop local solutions to the workforce
challenges facing high-growth, high-skill industries with
labor shortages, and increase opportunities for workers to
gain access to employment in high-growth, high-demand
occupations by promoting the establishment of partnerships
among education entities, the workforce investment system,
and businesses in high-growth, high-skill industries.
``(2) Grants.--In carrying out the demonstration project
under this subsection, the Secretary shall award competitive
grants, in accordance with generally applicable Federal
requirements, to eligible entities to carry out activities
authorized under this subsection.
``(3) Definitions.--
``(A) Eligible entity.--In this subsection, the term
`eligible entity' means a community college or consortium of
community colleges that shall work in conjunction with--
``(i) the local workforce investment system; and
``(ii) business or businesses in a qualified industry or an
industry association in a qualified industry.
``(B) Qualified industry.--In this subsection, the term
`qualified industry' means an industry or economic sector
that is projected to experience significant growth, such as
an industry and economic sector that--
``(i) is projected to add substantial numbers of new jobs
to the economy;
``(ii) has significant impact on the economy;
``(iii) impacts the growth of other industries and economic
sectors;
``(iv) is being transformed by technology and innovation
requiring new knowledge or skill sets for workers;
``(v) is a new or emerging industry or economic sector that
is projected to grow; or
``(vi) has high-skilled occupations and significant labor
shortages in the local area.
``(C) Community college.--As used in this subsection, the
term `community college' means an institution of higher
education, as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001), that provides not less than a
2-year program that is acceptable for full credit toward a
bachelor's degree, or is a tribally controlled college or
university.
``(4) Authority to require non-federal share.--The
Secretary may require that recipients of grants under this
subsection provide a non-Federal share, from either cash or
noncash resources, of the costs of activities carried out
under a grant awarded under this subsection.
``(5) Use of funds.--Grants awarded under this subsection
may be used for--
``(A) the development, by a community college, in
consultation with representatives of qualified industries, of
rigorous training and education programs related to
employment in a qualified industry identified in the eligible
entity's application;
``(B) training of adults and dislocated workers in the
skills and competencies needed to obtain or upgrade
employment in a
[[Page H12316]]
qualified industry identified in the eligible entity's
application;
``(C) disseminating to adults and dislocated workers,
through the one-stop delivery system, information on high-
growth, high-demand occupations in qualified industries;
``(D) placing, through the one-stop delivery system,
trained individuals into employment in qualified industries;
and
``(E) increasing the integration of community colleges with
activities of businesses and the one-stop delivery system to
meet the training needs for qualified industries.
``(6) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require,
including--
``(A) a description of the eligible entity that will offer
training under the grant;
``(B) an economic analysis of the local labor market to
identify high-growth, high-demand industries, identify the
workforce issues faced by those industries, and potential
participants in programs funded under this subsection;
``(C) a description of the qualified industry for which
training will occur and the availability of competencies on
which training will be based and how the grant will help
workers acquire the competencies and skills necessary for
employment;
``(D) an assurance that the application was developed in
consultation with the local board or boards and businesses,
including small businesses, in the geographic area or areas
where the proposed grant will be used;
``(E) performance measures for the grant, including
expected number of individuals to be trained in a qualified
industry, the employment and retention rates for such
individuals in a qualified industry, and earnings increases
for such individuals;
``(F) a description of how the activities funded by the
proposed grant will be coordinated with activities provided
through the one-stop delivery system in the local area or
areas; and
``(G) a description of any local or private resources that
will support the activities carried out under this subsection
and allow the entity to carry out and expand such activities
after the expiration of the grant.
``(7) Factors for award of grant.--
``(A) In general.--In awarding grants under this subsection
the Secretary shall consider--
``(i) the extent of public and private collaboration,
including existing partnerships among industries, community
colleges, and the public workforce investment system;
``(ii) the extent to which the grant will provide job
seekers with employment opportunities in high-growth, high-
demand occupations;
``(iii) the extent to which the grant will expand the
eligible entity and local one-stop delivery system's capacity
to be demand-driven and responsive to local economic needs;
``(iv) the extent to which local businesses commit to hire
or retain individuals who receive training through the grant;
and
``(v) the extent to which the eligible entity commits to
make any newly developed products, such as competencies or
training curriculum, available for distribution nationally.
``(B) Leveraging of resources.--In awarding grants under
this subsection, the Secretary shall also consider--
``(i) the extent to which local or private resources, in
addition to the funds provided under this subsection, will be
made available to support the activities carried out under
this subsection; and
``(ii) the ability of an eligible entity to continue to
carry out and expand such activities after the expiration of
the grant.
``(C) Distribution of grants.--In awarding grants under
this subsection the Secretary shall ensure an equitable
distribution of such grants across geographically diverse
areas.
``(8) Performance accountability and evaluation.--
``(A) Performance accountability.--The Secretary shall
require an eligible entity that receives a grant under this
subsection to report to the Secretary on the employment
outcomes obtained by individuals receiving training under
this subsection using the indicators of performance
identified in the eligible entity's grant application.
``(B) Evaluation.--The Secretary may require that an
eligible entity that receives a grant under this subsection
participate in an evaluation of activities carried out under
this subsection, including an evaluation using the techniques
described in section 172(c).''.
SEC. 433. EVALUATIONS.
(a) Impact Analysis.--Section 172(a)(4) (29 U.S.C.
2917(a)(4)) is amended to read as follows:
``(4) the impact of receiving services and not receiving
services under such programs and activities on the community,
businesses, and individuals;''; and
(b) Techniques.--Section 172(c) (29 U.S.C. 2917(c)) is
amended to read as follows:
``(c) Techniques.--Evaluations conducted under this section
shall utilize appropriate and rigorous methodology and
research designs, including the use of control groups chosen
by scientific random assignment methodologies, quasi-
experimental methods, impact analysis and the use of
administrative data. The Secretary shall conduct an impact
analysis, as described in subsection (a)(4), of the formula
grant programs under subtitle B not later than 2010, and
thereafter shall conduct such an analysis not less than once
every four years.''.
SEC. 434. NATIONAL DISLOCATED WORKER GRANTS.
(a) In General.--Section 173 (29 U.S.C. 2916) is amended--
(1) by amending the designation and heading to read as
follows:
``SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.'';
and
(2) in subsection (a)--
(A) by striking ``national emergency grants'' in the matter
preceding paragraph (1) and inserting ``national dislocated
worker grants''; and
(B) in paragraph (1), by striking ``subsection (c)'' and
inserting ``subsection (b)''.
(3) by striking subsections (b) and (e) and redesignating
subsections (c), (d), (f), and (g) as subsections (b) through
(e), respectively;
(4) in subsection (b)(1)(B) as so redesignated), by
striking ``, and other entities'' and all that follows and
inserting a period; and
(5) in subsection (b)(2)(A) (as so redesignated)--
(A) in clause (iii), by striking ``; or'' and inserting a
semicolon;
(B) in clause (iv)(IV) by striking the period and inserting
``; or''; and
(C) by inserting at the end the following:
``(v) is the spouse of a member of the Armed Forces who is
on active duty or full-time National Guard duty, or who was
recently separated from such duties, and such spouse is in
need of employment and training assistance to obtain or
retain employment.''.
(b) Conforming Amendment.--The table of contents in section
1(b) is amended by amending the item related to section 173
to read as follows:
``Sec. 173. National dislocated worker grants.''.
SEC. 435. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL
ACTIVITIES.
(a) In General.--Section 174(a)(1) (29 U.S.C. 2919(a)(1))
is amended by striking ``1999 through 2003'' and inserting
``2008 through 2012''.
(b) Reservations.--Section 174(b) is amended to read as
follows:
``(b) Technical Assistance; Demonstration and Pilot
Projects; Evaluations; Incentive Grants.--
``(1) Demonstration and pilot projects.--There are
authorized to be appropriated to carry out section 171, such
sums as may be necessary for fiscal years 2008 through 2012.
``(2) Technical assistance, evaluations.--There are
authorized to be appropriated to carry out section 170,
section 172, and section 136 such sums as may be necessary
for each of fiscal years 2008 through 2012.''.
SEC. 436. REQUIREMENTS AND RESTRICTIONS.
(a) In General.--Section 181(c)(2)(A) (29 U.S.C.
2931(c)(2)(A)) is amended in the matter preceding clause (i)
by striking ``shall'' and inserting ``may''.
(b) Limitations.--Section 181(e) (29 U.S.C. 2931(e)) is
amended by striking ``training for'' and inserting ``the
entry into employment, retention in employment, or increases
in earnings of''.
(c) Salary Cap.--Section 181 (29 U.S.C. 2931) is further
amended by adding at the end the following new subsection:
``(g) Salary and Bonus Limitation.--No funds provided under
this title shall be used by a recipient or subrecipient of
such funds to pay the salary and bonuses of an individual,
either as direct costs or indirect costs, at a rate in excess
of Level II of the Federal Executive Pay Schedule (5 U.S.C.
5313). This limitation shall not apply to vendors providing
goods and services as defined in OMB Circular A-133. Where
States are recipients of such funds, States may establish a
lower limit for salaries and bonuses of those receiving
salaries and bonuses from subrecipients of such funds, taking
into account factors including the relative cost-of-living in
the State, the compensation levels for comparable State or
local government employees, and the size of the organizations
that administer the programs.''.
(d) Reports to Congress.--Section 185 (29 U.S.C. 2935) is
amended--
(1) in subsection (c)--
(A) in paragraph (2), by striking ``and'' after the
semicolon;
(B) in paragraph (3), by striking the period and inserting
``; and''; and
(C) by adding at the end the following:
``(4) shall have the option to submit or disseminate
electronically any reports, records, plans, or any other data
that are required to be collected or disseminated under this
title.''; and
(2) in paragraph (e)(2), by inserting ``and the Secretary
shall submit to the Committee on Education and Labor of the
House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate,'' after
``Secretary,''.
SEC. 437. NONDISCRIMINATION.
Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended to read
as follows:
``(2) Prohibition of discrimination regarding
participation, benefits, and employment.--
``(A) In general.--Except as provided in subparagraph (B),
no individual shall be excluded from participation in, denied
the benefits of, subjected to discrimination under, or denied
employment in the administration of or in connection with,
any such program or activity because of race, color,
religion, sex (except as otherwise permitted under title IX
of the Education Amendments of 1972), national origin, age,
disability, or political affiliation or belief.
[[Page H12317]]
``(B) Exemption for religious organizations.--Subparagraph
(A) shall not apply to a recipient of financial assistance
under this title that is a religious corporation,
association, educational institution, or society, with
respect to the employment of individuals of a particular
religion to perform work connected with the carrying on by
such corporation, association, educational institution, or
society of its activities. Such recipients shall comply with
the other requirements contained in subparagraph (A).''.
SEC. 438. ADMINISTRATIVE PROVISIONS.
(a) Program Year.--Section 189(g)(1) (29 U.S.C. 2939(g)(1))
is amended to read as follows:
``(1) In general.--Appropriations for any fiscal year for
programs and activities carried out under this title shall be
available for obligation only on the basis of a program year.
The program year shall begin on July 1 in the fiscal year for
which the appropriation is made.''.
(b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2))
is amended by striking ``each State'' and inserting ``each
recipient''.
(c) General Waivers.--Section 189(i)(4) (29 U.S.C.
2939(i)(4)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by inserting ``, or
in accordance with subparagraph (D)'' after ``subparagraph
(B)''; and
(B) by striking clause (ii), the clause (i) designation and
the dash preceding such designation, and moving the remaining
text flush with the preceding matter; and
(2) by adding the following subparagraph:
``(D) Expedited process for extending approved waivers to
additional states.--In lieu of the requirements of
subparagraphs (B) and (C), the Secretary may establish an
expedited procedure for the purpose of extending to
additional States the waiver of statutory or regulatory
requirements that have been approved for a State pursuant to
a request under subparagraph (B). Such procedure shall ensure
that the extension of such waivers to additional States are
accompanied by appropriate conditions relating the
implementation of such waivers.''.
SEC. 439. STATE LEGISLATIVE AUTHORITY.
Section 191is amended--
(1) in subsection (a), by striking ``consistent with the
provisions of this title'' and inserting ``consistent with
State law and the provisions of this title''; and
(2) in subsection (a), by striking ``consistent with the
terms and conditions required under this title'' and
inserting ``consistent with State law and the terms and
conditions required under this title''.
SEC. 440. WORKFORCE INNOVATION IN REGIONAL ECONOMIC
DEVELOPMENT.
(a) Workforce Innovation in Regional Economic
Development.--Section 192 (29 U.S.C. 2942) is amended to read
as follows:
``SEC. 192. WORKFORCE INNOVATION IN REGIONAL ECONOMIC
DEVELOPMENT.
``(a) Workforce Innovation in Regional Economic Development
Plans.--
``(1) In general.--The Secretary, in cooperation with other
federal agency heads responsible for the administration of
programs included in plans submitted under this subsection,
may approve Workforce Innovation in Regional Economic
Development (in this subsection referred to as WIRED) plans
submitted by a State pursuant to paragraph (2) to support the
development of regional economies in order to foster economic
development, expand employment, and advancement opportunities
for workers and to promote the creation of high-skill and
high-wage opportunities.
``(2) Contents of plan.--To have a WIRED plan approved
under this subsection, a State and the region or regions
identified in subparagraph (A) shall jointly submit a plan to
the Secretary at such time, in such manner, and containing
such information as the Secretary may require, including--
``(A) the identification of the multi-county region or
regions that is to be the focus of the activities provided
under the plan, including identification of the communities
in the region that share common characteristics, and a
description of why the selected area comprises a regional
economy;
``(B) a description of the broad-based regional partnership
that has been created for the region identified in
subparagraph (A) representing the major assets of the region,
consistent with the requirements of paragraph (3), and that
will assist in developing the economic vision described in
subparagraph (D), the strategies described in subparagraph
(E), and provide a forum for regional economic decision-
making, including a description of the partnership's
involvement, particularly that of representatives of affected
local boards and chief elected officials, in the development
of the plan;
``(C) a description of the assets of the region identified
in subparagraph (A), based on a regional assessment, and
identification of the strengths, weaknesses, opportunities,
and risks based on those assets;
``(D) a description of an economic vision for the region
identified in subparagraph (A), based on the identified
strengths and assets described in subparagraph (C), and
evidence of support for that vision from the broad-based
regional partnership described in subparagraph (B);
``(E) a description of the talent development and related
strategies that provide a blueprint for how to achieve the
economic vision for the region as described in subparagraph
(D), including the activities to be carried out under this
subsection, consistent with paragraphs (5) and (6), and the
identification of specific goals associated with those
strategies;
``(F) information on the workforce development programs to
be integrated in the region, in accordance with the
requirements of paragraph (4), into an integrated workforce
development program, including--
``(i) identification of the programs to be integrated;
``(ii) the amount and proportion of the resources available
to the region under each of the integrated programs to carry
out the strategies described in subparagraph (E);
``(iii) a description of how these resources will be used
to accomplish the vision identified in subparagraph (D),
including the services to be provided and how such services
will be provided, consistent with clause (iv) and paragraph
(5);
``(iv) assurances that in carrying out the wired plan--
``(I) the region, through the integrated workforce
development program, will maintain a local workforce
investment board, or a regional workforce investment board,
that is substantially similar to the local workforce
investment boards required under section 117 of this Act,
that such board will carry out functions that are
substantially similar to those described under section
117(d), and, that such region shall submit to the State for
approval a local plan for the region that is substantially
similar to the local plans required under section 118 of this
Act;
``(II) the region, through the integrated workforce
development program, will maintain a one-stop delivery system
that is consistent with the requirements of section 121 of
this Act;
``(III) the region, through the integrated workforce
development program, will serve populations consistent with
the populations served by the programs being integrated, and
will provide universal access to work ready services as
described in section 134(d)(2) of this Act;
``(IV) the region, in carrying out the integrated workforce
development program, will comply with the veterans' priority
of service requirement under section 4215 of title 38, United
States Code;
``(V) of the funds expended under the integrated workforce
development program each year, not more than 10 percent of
such funds will be expended on the costs of administration
(as defined by the Secretary);
``(VI) the services provided under the integrated workforce
development program will be coordinated with employment-
related programs not included under the integrated workforce
program;
``(VII) the region, in carrying out the integrated
workforce development program, will comply with requirements
under this title relating to wage and labor standards
(including nondisplacement provisions), grievance procedures
and judicial review, and nondiscrimination;
``(G) an assurance that each local workforce board and
chief elected official included in the region that will carry
out the integrated workforce development plan has approved
the plan;
``(H) information on the community and economic development
programs, if any, that will provide a portion of funds that
will be integrated to carry out the strategies described in
subparagraph (E), in accordance with the requirements of
paragraph (6), including--
``(i) identification of the included community and economic
development programs;
``(ii) the amount and proportion of the resources available
to the State under each such program that will be used in the
region to carry out the strategies described in subparagraph
(E);
``(iii) a description of how these resources will be used
to assist in accomplishing the vision identified in
subparagraph (D), including the activities to be carried out;
``(I) in addition to the resources described under
subparagraphs (F) and (G), identification of other resources
that will be used to support the strategies of the region
described in subparagraph (E), from a wide range of sources,
including foundations, private investment such as venture
capital, and federal, state, and local governments.
``(3) Broad-based regional partnership.--For purposes of
this subsection, a broad-based regional partnership--
``(A) shall include--
``(i) representatives from each of the local workforce
investment systems in the region identified under paragraph
(2)(A), such as the chairpersons or executive directors of
affected local workforce investment boards in such region;
``(ii) representatives of the education system in the
region identified under paragraph (2)(A), including
representatives from each of the following:
``(I) The K-12 public school systems;
``(II) Community colleges; and
``(III) Four-year educational institutions;
``(iii) representatives of businesses and industry
associations in the region identified under paragraph (2)(A);
``(iv) the chief elected officials from each of the
affected local areas identified under paragraph (2)(A); and
``(v) representatives of local and regional economic
development agencies in the region identified under paragraph
(2)(A); and
``(B) may include--
``(i) representatives of the philanthropic community;
``(ii) representatives of postsecondary education and
training providers in addition to those described in
subparagraph (A)(ii);
[[Page H12318]]
``(iii) representatives of private investment entities such
as seed and venture capital organizations; investor networks;
and entrepreneurs;
``(iv) representatives of faith and community-based
organizations; and
``(v) representatives of such other Federal, state or local
entities and organizations that may enhance the carrying out
of the activities of the partnership.
``(4) Integration of workforce development services
authorized.--
``(A) Authorization for integration.--In carrying out this
subsection, the Secretary of Labor, in cooperation with the
federal agency heads responsible for the administration of
the workforce development programs described in subparagraph
(D) that are included in the WIRED plan submitted by the
State, shall, upon the approval of the plan submitted under
paragraph (2), authorize the State to integrate programs as
described in subparagraph (B).
``(B) Integration.--The authorization shall give the State
the authority to integrate, in accordance with such approved
plan, the federally-funded programs described in subparagraph
(D) that are included in the approved plan, in a manner that
integrates those programs into a single, coordinated,
comprehensive workforce development program to achieve the
economic vision identified in such plan for the region.
``(C) Effect on program requirements.--The provisions of
the approved grant application and the requirements of this
subsection shall supersede the requirements of the statutes
authorizing the programs included for integration in such
approved plan, except as otherwise specified in this
subsection.
``(D) Included workforce development programs.--
``(i) Mandatory programs.--A WIRED plan authorized under
this subsection shall include the workforce investment
activities for adults authorized under chapter 5 of subtitle
B.
``(ii) Additional programs.--In addition to the integration
of the programs described in clause (i) into a single
program, a WIRED plan may include integration of one or more
of the following programs as part of such single program--
``(I) the program of workforce investment activities for
youth authorized under chapter 4 of subtitle B; or
``(II) any of the other required one-stop partner programs
and activities described in section 121(b)(1)(B) of this Act.
``(5) Workforce development activities to be carried out
under wired plan.--The workforce development activities
carried out under a WIRED plan may include--
``(A) job training and related activities for workers to
assist them in gaining the skills and competencies needed to
obtain or upgrade employment in industries or economic
sectors projected to experience significant growth in the
region identified in paragraph (2)(A), including--
``(i) activities supporting talent development related to
entrepreneurship and small business development; and
``(ii) the purchase of equipment to train job seekers and
workers for high-growth occupations;
``(B) activities to enhance the training and related
activities described in subparagraph (A) and to promote
workforce development in the region identified in paragraph
(2)(A), including--
``(i) the development and implementation of model
activities, such as developing appropriate curricula to build
core competencies and train workers in the region;
``(ii) identifying and disseminating career and skill
information relating to the region;
``(iii) developing or purchasing regional data tools or
systems to deepen understanding of the regional economy and
labor market; and
``(iv) integrated regional planning, such as increasing the
integration of community and technical college activities
with activities of businesses and the public workforce
investment system to meet the training needs of high growth
industries in the region.
``(C) appropriate employment-related activities and
services authorized under the workforce development programs
that are integrated under the plan in accordance with
paragraphs (2)(F) and (4) that will assist achieving the
economic vision described in paragraph (2)(D) and in
implementing the strategies described in paragraph (2)(E).
``(6) Integration of community and economic development
funds authorized.--
``(A) Authorization for integration of funds.--In carrying
out this subsection, the Secretary of Labor, in cooperation
with the federal agency heads responsible for the
administration of the community and economic development
programs described in subparagraph (D) that are included in
the WIRED plan submitted by the State, shall, upon the
approval of the plan submitted under paragraph (2), authorize
the State to integrate the portion of the funds from such
programs to assist in implementing such plans.
``(B) Integration.--The authorization shall give the State
the authority to integrate, in accordance with such approved
plan, funds provided under programs identified from
subparagraph (D) to carry out the community and economic
development activities described in paragraph (2)(G).
``(C) Effect on program requirements.--The integrated funds
may be used, consistent with the description contained in
paragraph (2)(G), to carry out any of the activities
authorized under any the programs described in subparagraph
(D) that are included in the plan.
``(D) Included community and economic development
programs.--The funds that may be integrated under this
paragraph are funds provided under--
``(i) Community Development Block Grants authorized under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301-5321);
``(ii) grants authorized under the Community Services Block
Grant Act (42 U.S.C. 9901 et seq.);
``(iii) Public Works and Economic Development Grants
authorized under section 201 of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3141);
``(iv) Rural Business Enterprise Grants authorized under
the Consolidated Farm and Rural Development Act (7 U.S.C.
1932);
``(v) Rural Business Opportunity Grants authorized under
section 741(a)(11) of the Federal Agriculture Improvement and
Reform Act of 1996 (42 U.S.C. 1926(a)(11);
``(vi) grants authorized under the Brownfields Economic
Development Initiative; and
``(vii) Rural Housing and Economic Development grants.
``(7) Special rule.--If a State elects not to submit a
WIRED plan described in paragraph (2) for approval or does
not have a plan approved under paragraph (2), the Secretary
may approve a WIRED plan submitted by a local workforce
investment board or a regional workforce investment board
that serves a region within such State, if the plan meets all
other requirements of this section.
``(8) Performance measures and reporting.--
``(A) Performance measures.--The Secretary shall establish
performance measures that will be used to evaluate the
effectiveness of activities carried out under this subsection
and shall require such entities to report to the Secretary on
the employment outcomes obtained by individuals receiving
training under this subsection using those core indicators of
performance described in section 136(b)(2).
``(B) Reporting.--Each State with an approved plan under
this subsection shall ensure that records are maintained and
reports are submitted, in such form and containing such
information, as the Secretary may require regarding the
performance of programs and activities carried out under this
subsection.
``(9) Technical assistance and evaluation.--
``(A) Technical assistance.--The Secretary shall provide
such staff training, technical assistance, and other
activities as the Secretary deems appropriate to support the
implementation of this subsection.
``(B) Evaluation.--The Secretary may require that States
with an approved plan under this subsection to participate in
an evaluation of activities carried out under this
subsection, including an evaluation using the techniques
described in section 172(c).
``(10) Plan review.--Upon receipt of a WIRED plan from the
Governor, the Secretary shall consult with the Federal agency
head responsible for the administration of any of the
programs included in the plan pursuant to paragraph (4) or
(6).
``(11) Federal responsibilities.--
``(A) Interagency memorandum of understanding.--Within 90
days following the date of enactment of this subsection, the
Secretary and the federal agency heads responsible for
programs that could be included in a plan approved under this
subsection pursuant to paragraph (4) or (6) shall enter into
an interdepartmental memorandum of agreement providing for
the implementation of WIRED plans with respect to the
integration of programs and funds administered by each
Secretary.
``(B) Interagency funds transfers authorized.--The
Secretary and the federal agency heads responsible for the
programs that are included in a plan approved under paragraph
(4) or (6) are authorized to take such action as may be
necessary to provide for intra-agency or interagency
transfers of funds otherwise available to a State in order to
further the purposes of this subsection.
``(12) Administration of funds.--
``(A) Separate records not required.--Nothing in this
subsection shall be construed as requiring the region to
maintain separate records tracing any services or activities
conducted under an approved WIRED plan to the programs under
which funds were originally authorized, nor shall the State
be required to allocate expenditures among such programs.
``(B) Single audit act.--Nothing in this section shall be
construed to interfere with the ability of the Secretary to
fulfill the responsibilities for the safeguarding of Federal
funds pursuant to the Single Audit Act of 1984.
``(b) Authority To Carry Out Additional WIRED Activities
Under WIA.--
``(1) Authorization for use of certain funds under wia.--
Funds available under sections 128(a), 133(a), 171, and 173
of this Act may be used by recipients and subrecipients of
those funds for WIRED activities, as defined in paragraph
(2), in addition to the other activities for which such funds
are authorized to be used.
``(2) Definition.--For purposes of this subsection, WIRED
activities include--
``(A) WIRED planning activities, including--
``(i) defining the regional economy;
[[Page H12319]]
``(ii) creating a broad-based regional partnership that
assists in developing the economic vision described in clause
(iv), the strategies described in clause (v), and that
provides a forum for regional economic decision-making;
``(iii) conducting an assessment of the regional economy to
map the assets of a region and identify the strengths,
weaknesses, opportunities and risks based on those assets;
``(iv) developing an economic vision based on those
strengths and assets;
``(v) developing strategies and corresponding
implementation plans that identify specific goals and tasks
and provides a blueprint for how to achieve the economic
vision for the region; and
``(vi) identifying resources to support the plan of the
region;
``(B) job training and related activities for workers to
assist them in gaining the skills and competencies needed to
obtain or upgrade employment in industries or economic
sectors projected to experience significant growth in the
region, including--
``(i) activities supporting talent development related to
entrepreneurship and small business development in the
region; and
``(ii) the purchase of equipment to train job seekers and
workers for high-growth occupations in the region; and
``(C) activities to enhance training and related activities
and to promote workforce development in the region,
including--
``(i) the development and implementation of model
activities, such as developing appropriate curricula to build
core competencies and train workers in the region;
``(ii) identifying and disseminating career and skill
information relating to the region;
``(iii) developing or purchasing regional data tools or
systems to deepen understanding of the regional economy and
labor market; and
``(iv) integrated regional planning, such as increasing the
integration of community and technical college activities
with activities of businesses and the public workforce
investment system to meet the training needs of businesses in
the region.''.
SEC. 441. GENERAL PROGRAM REQUIREMENTS.
Section 195 (29 U.S.C. 2945) is amended--
(1) in paragraph (7) by inserting at the end the following:
``(D) Funds received by a public or private nonprofit
entity that are not described in paragraph (B), such as funds
privately raised from philanthropic foundations, businesses,
or other private entities, shall not be considered to be
income under this title and shall not be subject to the
requirements of this section.'';
(2) by adding at the end the following new paragraphs:
``(14) Funds provided under this title shall not be used to
establish or operate stand-alone fee-for-service enterprises
that compete with private sector employment agencies within
the meaning of section 701(c) of the Civil Rights Act of 1964
(42 U.S.C. 2000e(c)). For purposes of this paragraph, such an
enterprise does not include one-stop centers.
``(15) Any report required to be submitted to Congress, or
to a Committee of Congress, under this title shall be
submitted to both the chairmen and ranking minority members
of the Committee on Education and Labor of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate.''.
Subtitle B--Adult Education, Basic Skills, and Family Literacy
Education
SEC. 451. TABLE OF CONTENTS.
The table of contents in section 1(b) is amended by
amending the items relating to title II to read as follows:
``TITLE II--ADULT EDUCATION, BASIC SKILLS, AND FAMILY LITERACY
EDUCATION
``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.
``Chapter 1--Federal Provisions
``Sec. 211. Reservation of funds; grants to eligible agencies;
allotments.
``Sec. 212. Performance accountability system.
``Sec. 213. Incentive grants for States.
``Chapter 2--State Provisions
``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``Sec. 223. State leadership activities.
``Sec. 224. State plan.
``Sec. 225. Programs for corrections education and other
institutionalized individuals.
``Chapter 3--Local Provisions
``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.
``Chapter 4--General Provisions
``Sec. 241. Administrative provisions.
``Sec. 242. National Institute for Literacy.
``Sec. 243. National leadership activities.''.
SEC. 452. AMENDMENT.
Title II (29 U.S.C. 2901 et seq.) is amended to read as
follows:
``TITLE II--ADULT EDUCATION, BASIC SKILLS, AND FAMILY LITERACY
EDUCATION
``SEC. 201. SHORT TITLE.
``This title may be cited as the `Adult Education, Basic
Skills, and Family Literacy Education Act'.
``SEC. 202. PURPOSE.
``It is the purpose of this title to provide instructional
opportunities for adults seeking to improve their literacy
skills, including their basic reading, writing, speaking, and
math skills, and support States and local communities in
providing, on a voluntary basis, adult education, basic
skills, and family literacy education programs, in order to--
``(1) increase the literacy of adults, including the basic
reading, writing, speaking, and math skills, to a level of
proficiency necessary for adults to obtain employment and
self-sufficiency and to successfully advance in the
workforce;
``(2) assist adults in the completion of a secondary school
education (or its equivalent) and the transition to a
postsecondary educational institution;
``(3) assist adults who are parents to enable them to
support the educational development of their children and
make informed choices regarding their children's education
including, through instruction in basic reading, writing,
speaking, and math skills; and
``(4) assist immigrants who are not proficient in English
in improving their reading, writing, speaking, and math
skills and acquiring an understanding of the American free
enterprise system, individual freedom, and the
responsibilities of citizenship.
``SEC. 203. DEFINITIONS.
``In this title:
``(1) Adult education, basic skills, and family literacy
education programs.--The term `adult education, basic skills,
and family literacy education programs' means a sequence of
academic instruction and educational services below the
postsecondary level that increase an individual's ability to
read, write, and speak in English and perform mathematical
computations leading to a level of proficiency equivalent to
at least a secondary school completion that is provided for
individuals--
``(A) who are at least 16 years of age;
``(B) who are not enrolled or required to be enrolled in
secondary school under State law; and
``(C) who--
``(i) lack sufficient mastery of basic reading, writing,
speaking, and math skills to enable the individuals to
function effectively in society;
``(ii) do not have a secondary school diploma, General
Educational Development credential (GED), or other State-
recognized equivalent and have not achieved an equivalent
level of education; or
``(iii) are unable to read, write, or speak the English
language.
``(2) Eligible agency.--The term `eligible agency'--
``(A) means the primary entity or agency in a State or an
outlying area responsible for administering or supervising
policy for adult education, basic skills, and family literacy
education programs in the State or outlying area,
respectively, consistent with the law of the State or
outlying area, respectively; and
``(B) may be the State educational agency, the State agency
responsible for administering workforce investment
activities, or the State agency responsible for administering
community or technical colleges.
``(3) Eligible provider.--The term `eligible provider'
means--
``(A) a local educational agency;
``(B) a community-based or faith-based organization of
demonstrated effectiveness;
``(C) a volunteer literacy organization of demonstrated
effectiveness;
``(D) an institution of higher education;
``(E) a public or private educational agency;
``(F) a library;
``(G) a public housing authority;
``(H) an institution that is not described in any of
subparagraphs (A) through (G) and has the ability to provide
adult education, basic skills, and family literacy education
programs to adults and families; or
``(I) a consortium of the agencies, organizations,
institutions, libraries, or authorities described in any of
subparagraphs (A) through (H).
``(4) English language acquisition program.--The term
`English language acquisition program' means a program of
instruction designed to help individuals with limited English
proficiency achieve competence in reading, writing, and
speaking the English language.
``(5) Essential components of reading instruction.--The
term `essential components of reading instruction' has the
meaning given to that term in section 1208 of the Elementary
and Secondary Education Act of 1965.
``(6) Family literacy education program.--The term `family
literacy education program' means an educational program
that--
``(A) assists parents and students, on a voluntary basis,
in achieving the purposes of this title as described in
section 202; and
``(B) is of sufficient intensity in terms of hours and of
sufficient duration to make sustainable changes in a family,
is based upon scientifically based research, and, for the
purpose of substantially increasing the ability of parents
and children to read, write, and speak English, integrates--
``(i) interactive literacy activities between parents and
their children;
``(ii) training for parents regarding how to be the primary
teacher for their children and full partners in the education
of their children;
[[Page H12320]]
``(iii) parent literacy training that leads to economic
self-sufficiency; and
``(iv) an age-appropriate education to prepare children for
success in school and life experiences.
``(7) Governor.--The term `Governor' means the chief
executive officer of a State or outlying area.
``(8) Individual with a disability.--
``(A) In general.--The term `individual with a disability'
means an individual with any disability (as defined in
section 3 of the Americans with Disabilities Act of 1990).
``(B) Individuals with disabilities.--The term `individuals
with disabilities' means more than one individual with a
disability.
``(9) Individual with limited english proficiency.--The
term `individual with limited English proficiency' means an
adult or out-of-school youth who has limited ability in
reading, writing, speaking, or understanding the English
language, and--
``(A) whose native language is a language other than
English; or
``(B) who lives in a family or community environment where
a language other than English is the dominant language.
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given to
that term in section 101 of the Higher Education Act of 1965.
``(11) Literacy.--The term `literacy' means an individual's
ability to read, write, and speak in English, compute, and
solve problems at a level of proficiency necessary to obtain
employment and to successfully make the transition to
postsecondary education.
``(12) Local educational agency.--The term `local
educational agency' has the meaning given to that term in
section 9101 of the Elementary and Secondary Education Act of
1965.
``(13) Outlying area.--The term `outlying area' has the
meaning given to that term in section 101 of this Act.
``(14) Postsecondary educational institution.--The term
`postsecondary educational institution' means--
``(A) an institution of higher education that provides not
less than a 2-year program of instruction that is acceptable
for credit toward a bachelor's degree;
``(B) a tribally controlled community college; or
``(C) a nonprofit educational institution offering
certificate or apprenticeship programs at the postsecondary
level.
``(15) Reading.--The term `reading' has the meaning given
to that term in section 1208 of the Elementary and Secondary
Education Act of 1965.
``(16) Scientifically based research.--The term
`scientifically based research' has the meaning given to that
term in section 9101 of the Elementary and Secondary
Education Act of 1965.
``(17) Secretary.--The term `Secretary' means the Secretary
of Education.
``(18) State.--The term `State' means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
``(19) State educational agency.--The term `State
educational agency' has the meaning given to that term in
section 9101 of the Elementary and Secondary Education Act of
1965.
``(20) Workplace literacy program.--The term `workplace
literacy program' means an educational program that is
offered in collaboration between eligible providers and
employers or employee organizations for the purpose of
improving the productivity of the workforce through the
improvement of reading, writing, speaking, and math skills.
``SEC. 204. HOME SCHOOLS.
``Nothing in this title shall be construed to affect home
schools, whether or not a home school is treated as a home
school or a private school under State law, or to compel a
parent engaged in home schooling to participate in an English
language acquisition program, a family literacy education
program, or an adult education, basic skills, and family
literacy education program.
``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
title $590,127,000 for fiscal year 2008 and such sums as may
be necessary for fiscal years 2009 through 2012.
``CHAPTER 1--FEDERAL PROVISIONS
``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE
AGENCIES; ALLOTMENTS.
``(a) Reservation of Funds.--From the sums appropriated
under section 205 for a fiscal year, the Secretary--
``(1) shall reserve up to 1.72 percent for incentive grants
under section 213;
``(2) shall reserve 1.75 percent to carry out section 242;
and
``(3) shall reserve up to 1.55 percent to carry out section
243.
``(b) Grants to Eligible Agencies.--
``(1) In general.--From the sums appropriated under section
205 and not reserved under subsection (a) for a fiscal year,
the Secretary shall award a grant to each eligible agency
having a State plan approved under section 224 in an amount
equal to the sum of the initial allotment under subsection
(c)(1) and the additional allotment under subsection (c)(2)
for the eligible agency for the fiscal year, subject to
subsections (f) and (g).
``(2) Purpose of grants.--The Secretary may award a grant
under paragraph (1) only if the eligible agency involved
agrees to expend the grant in accordance with the provisions
of this title.
``(c) Allotments.--
``(1) Initial allotments.--From the sums appropriated under
section 205 and not reserved under subsection (a) for a
fiscal year, the Secretary shall allot to each eligible
agency having a State plan approved under section 224--
``(A) $100,000, in the case of an eligible agency serving
an outlying area; and
``(B) $250,000, in the case of any other eligible agency.
``(2) Additional allotments.--From the sums appropriated
under section 205, not reserved under subsection (a), and not
allotted under paragraph (1), for a fiscal year, the
Secretary shall allot to each eligible agency that receives
an initial allotment under paragraph (1) an additional amount
that bears the same relationship to such sums as the number
of qualifying adults in the State or outlying area served by
the eligible agency bears to the number of such adults in all
States and outlying areas.
``(d) Qualifying Adult.--For the purpose of subsection
(c)(2), the term `qualifying adult' means an adult who--
``(1) is at least 16 years of age;
``(2) is beyond the age of compulsory school attendance
under the law of the State or outlying area;
``(3) does not have a secondary school diploma, General
Educational Development credential (GED), or other State-
recognized equivalent; and
``(4) is not enrolled in secondary school.
``(e) Special Rule.--
``(1) In general.--From amounts made available under
subsection (c) for the Republic of Palau, the Secretary shall
award grants to Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, or the Republic of Palau to carry
out activities described in this title in accordance with the
provisions of this title as determined by the Secretary.
``(2) Termination of eligibility.--Notwithstanding any
other provision of law, the Republic of Palau shall be
eligible to receive a grant under this title until an
agreement for the extension of United States education
assistance under the Compact of Free Association for the
Republic of Palau becomes effective.
``(3) Administrative costs.--The Secretary may provide not
more than 5 percent of the funds made available for grants
under this subsection to pay the administrative costs of the
Pacific Region Educational Laboratory regarding activities
assisted under this subsection.
``(f) Hold-Harmless Provisions.--
``(1) In general.--Notwithstanding subsection (c), and
subject to paragraphs (2) and (3), for fiscal year 2008 and
each succeeding fiscal year, no eligible agency shall receive
an allotment under this title that is less than 90 percent of
the allotment the eligible agency received for the preceding
fiscal year under this title.
``(2) Exception.--An eligible agency that receives for the
preceding fiscal year only an initial allotment under
subsection (c)(1) (and no additional allotment under
subsection (c)(2)) shall receive an allotment equal to 100
percent of the initial allotment.
``(3) Ratable reduction.--If for any fiscal year the amount
available for allotment under this title is insufficient to
satisfy the provisions of paragraph (1), the Secretary shall
ratably reduce the payments to all eligible agencies, as
necessary.
``(g) Reallotment.--The portion of any eligible agency's
allotment under this title for a fiscal year that the
Secretary determines will not be required for the period such
allotment is available for carrying out activities under this
title, shall be available for reallotment from time to time,
on such dates during such period as the Secretary shall fix,
to other eligible agencies in proportion to the original
allotments to such agencies under this title for such year.
``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
``(a) Purpose.--The purpose of this section is to establish
a comprehensive performance accountability system, composed
of the activities described in this section, to assess the
effectiveness of eligible agencies in achieving continuous
improvement of adult education, basic skills, and family
literacy education programs funded under this title, in order
to optimize the return on investment of Federal funds in
adult education, basic skills, and family literacy education
programs.
``(b) Eligible Agency Performance Measures.--
``(1) In general.--For each eligible agency, the eligible
agency performance measures shall consist of--
``(A)(i) the core indicators of performance described in
paragraph (2)(A); and
``(ii) employment performance indicators identified by the
eligible agency under paragraph (2)(B); and
``(B) an eligible agency adjusted level of performance for
each indicator described in subparagraph (A).
``(2) Indicators of performance.--
``(A) Core indicators of performance.--The core indicators
of performance shall include the following:
``(i) Measurable improvements in literacy, including basic
skill levels in reading, writing, and speaking the English
language and basic math, leading to proficiency in each
skill.
``(ii) Receipt of a secondary school diploma, General
Educational Development credential (GED), or other State-
recognized equivalent.
``(iii) Placement in postsecondary education or other
training programs.
[[Page H12321]]
``(B) Employment performance indicators.--Consistent with
applicable Federal and State privacy laws, an eligible agency
shall identify in the State plan the following individual
participant employment performance indicators:
``(i) Entry into employment.
``(ii) Retention in employment.
``(iii) Increase in earnings.
``(3) Levels of performance.--
``(A) Eligible agency adjusted levels of performance for
core indicators.--
``(i) In general.--For each eligible agency submitting a
State plan, there shall be established, in accordance with
this subparagraph, levels of performance for each of the core
indicators of performance described in paragraph (2)(A) for
adult education, basic skills, and family literacy education
programs authorized under this title. The levels of
performance established under this subparagraph shall, at a
minimum--
``(I) be expressed in an objective, quantifiable, and
measurable form; and
``(II) show the progress of the eligible agency toward
continuously and significantly improving the agency's
performance outcomes in an objective, quantifiable, and
measurable form.
``(ii) Identification in state plan.--Each eligible agency
shall identify, in the State plan submitted under section
224, expected levels of performance for each of the core
indicators of performance for the first 3 program years
covered by the State plan.
``(iii) Agreement on eligible agency adjusted levels of
performance for first 3 years.--In order to ensure an optimal
return on the investment of Federal funds in adult education,
basic skills, and family literacy education programs
authorized under this title, the Secretary and each eligible
agency shall reach agreement on levels of student performance
for each of the core indicators of performance, for the first
3 program years covered by the State plan, taking into
account the levels identified in the State plan under clause
(ii) and the factors described in clause (iv). The levels
agreed to under this clause shall be considered to be the
eligible agency adjusted levels of performance for the
eligible agency for such years and shall be incorporated into
the State plan prior to the approval of such plan.
``(iv) Factors.--The agreement described in clause (iii) or
(v) shall take into account--
``(I) how the levels involved compare with the eligible
agency's adjusted levels of performance, taking into account
factors including the characteristics of participants when
the participants entered the program; and
``(II) the extent to which such levels promote continuous
and significant improvement in performance on the student
proficiency measures used by such eligible agency and ensure
optimal return on the investment of Federal funds.
``(v) Agreement on eligible agency adjusted levels of
performance for second 3 years.--Prior to the fourth program
year covered by the State plan, the Secretary and each
eligible agency shall reach agreement on levels of student
performance for each of the core indicators of performance
for the fourth, fifth, and sixth program years covered by the
State plan, taking into account the factors described in
clause (iv). The levels agreed to under this clause shall be
considered to be the eligible agency adjusted levels of
performance for the eligible agency for such years and shall
be incorporated into the State plan.
``(vi) Revisions.--If unanticipated circumstances arise in
a State resulting in a significant change in the factors
described in clause (iv)(I), the eligible agency may request
that the eligible agency adjusted levels of performance
agreed to under clause (iii) or (v) be revised.
``(B) Levels of employment performance.--The eligible
agency shall identify, in the State plan, eligible agency
levels of performance for each of the employment performance
indicators described in paragraph (2)(B). Such levels shall
be considered to be eligible agency adjusted levels of
performance for purposes of this title.
``(c) Definitions for Indicators of Perfomance.--In order
to ensure comparability of performance data across States,
the Secretary shall issue definitions for the indicators of
performance under paragraph (2).
``(d) Report.--
``(1) In general.--Each eligible agency that receives a
grant under section 211(b) shall annually prepare and submit
to the Secretary, the Governor, the State legislature, and
eligible providers a report on the progress of the eligible
agency in achieving eligible agency performance measures,
including the following:
``(A) Information on the levels of performance achieved by
the eligible agency with respect to the core indicators of
performance and employment performance indicators.
``(B) The number and type of each eligible provider that
receives funding under such grant.
``(2) Information dissemination.--The Secretary--
``(A) shall make the information contained in such reports
available to the general public through publication
(including on the Internet site of the Department of
Education) and other appropriate methods;
``(B) shall disseminate State-by-State comparisons of the
information; and
``(C) shall provide the appropriate committees of the
Congress with copies of such reports.
``SEC. 213. INCENTIVE GRANTS FOR STATES.
``(a) In General.--From funds appropriated under section
211(a)(1), the Secretary may award grants to States for
exemplary performance in carrying out programs under this
title. Such awards shall be based on States exceeding the
core indicators of performance established under section
212(b)(2)(A) and may be based on the performance of the State
in serving populations, such as those described in section
224(b)(10), including the levels of service provided and the
performance outcomes, and such other factors relating to the
performance of the State under this title as the Secretary
determines appropriate.
``(b) Use of Funds.--The funds awarded to a State under
this paragraph may be used to carry out any activities
authorized under this title, including demonstrations and
innovative programs for hard-to-serve populations.
``CHAPTER 2--STATE PROVISIONS
``SEC. 221. STATE ADMINISTRATION.
``Each eligible agency shall be responsible for the
following activities under this title:
``(1) The development, submission, implementation, and
monitoring of the State plan.
``(2) Consultation with other appropriate agencies, groups,
and individuals that are involved in, or interested in, the
development and implementation of activities assisted under
this title.
``(3) Coordination and avoidance of duplication with other
Federal and State education, training, corrections, public
housing, and social service programs.
``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING
REQUIREMENT.
``(a) State Distribution of Funds.--Each eligible agency
receiving a grant under this title for a fiscal year--
``(1) shall use an amount not less than 82.5 percent of the
grant funds to award grants and contracts under section 231
and to carry out section 225, of which not more than 10
percent of such amount shall be available to carry out
section 225;
``(2) shall use not more than 12.5 percent of the grant
funds to carry out State leadership activities under section
223; and
``(3) shall use not more than 5 percent of the grant funds,
or $75,000, whichever is greater, for the administrative
expenses of the eligible agency.
``(b) Matching Requirement.--
``(1) In general.--In order to receive a grant from the
Secretary under section 211(b), each eligible agency shall
provide, for the costs to be incurred by the eligible agency
in carrying out the adult education, basic skills, and family
literacy education programs for which the grant is awarded, a
non-Federal contribution in an amount at least equal to--
``(A) in the case of an eligible agency serving an outlying
area, 12 percent of the total amount of funds expended for
adult education, basic skills, and family literacy education
programs in the outlying area, except that the Secretary may
decrease the amount of funds required under this subparagraph
for an eligible agency; and
``(B) in the case of an eligible agency serving a State, 25
percent of the total amount of funds expended for adult
education, basic skills, and family literacy education
programs in the State.
``(2) Non-federal contribution.--An eligible agency's non-
Federal contribution required under paragraph (1) may be
provided in cash or in kind, fairly evaluated, and shall
include only non-Federal funds that are used for adult
education, basic skills, and family literacy education
programs in a manner that is consistent with the purpose of
this title.
``SEC. 223. STATE LEADERSHIP ACTIVITIES.
``(a) In General.--Each eligible agency may use funds made
available under section 222(a)(2) for any of the following
adult education, basic skills, and family literacy education
programs:
``(1) The establishment or operation of professional
development programs to improve the quality of instruction
provided pursuant to local activities required under section
231(b), including instruction incorporating the essential
components of reading instruction and instruction provided by
volunteers or by personnel of a State or outlying area.
``(2) The provision of technical assistance to eligible
providers of adult education, basic skills, and family
literacy education programs, including for the development
and dissemination of scientifically based research
instructional practices in reading, writing, speaking, math,
and English language acquisition programs.
``(3) The provision of assistance to eligible providers in
developing, implementing, and reporting measurable progress
in achieving the objectives of this title.
``(4) The provision of technology assistance, including
staff training, to eligible providers of adult education,
basic skills, and family literacy education programs,
including distance learning activities, to enable the
eligible providers to improve the quality of such activities.
``(5) The development and implementation of technology
applications or distance learning, including professional
development to support the use of instructional technology.
``(6) Coordination with other public programs, including
welfare-to-work, workforce development, and job training
programs.
``(7) Coordination with existing support services, such as
transportation, child care, and other assistance designed to
increase rates of enrollment in, and successful completion
of, adult education, basic skills, and
[[Page H12322]]
family literacy education programs, for adults enrolled in
such activities.
``(8) The development and implementation of a system to
assist in the transition from adult basic education to
postsecondary education.
``(9) Activities to promote workplace literacy programs.
``(10) Activities to promote and complement local outreach
initiatives described in section 243(7).
``(11) Other activities of statewide significance,
including assisting eligible providers in achieving progress
in improving the skill levels of adults who participate in
programs under this title.
``(12) Integration of literacy, instructional, and
occupational skill training and promotion of linkages with
employees.
``(b) Coordination.--In carrying out this section, eligible
agencies shall coordinate where possible, and avoid
duplicating efforts, in order to maximize the impact of the
activities described in subsection (a).
``(c) State-Imposed Requirements.--Whenever a State or
outlying area implements any rule or policy relating to the
administration or operation of a program authorized under
this title that has the effect of imposing a requirement that
is not imposed under Federal law (including any rule or
policy based on a State or outlying area interpretation of a
Federal statute, regulation, or guideline), the State or
outlying area shall identify, to eligible providers, the rule
or policy as being imposed by the State or outlying area.
``SEC. 224. STATE PLAN.
``(a) 6-Year Plans.--
``(1) In general.--Each eligible agency desiring a grant
under this title for any fiscal year shall submit to, or have
on file with, the Secretary a 6-year State plan.
``(2) Comprehensive plan or application.--The eligible
agency may submit the State plan as part of a comprehensive
plan or application for Federal education assistance.
``(b) Plan Contents.--The eligible agency shall include in
the State plan or any revisions to the State plan--
``(1) an objective assessment of the needs of individuals
in the State or outlying area for adult education, basic
skills, and family literacy education programs, including
individuals most in need or hardest to serve;
``(2) a description of the adult education, basic skills,
and family literacy education programs that will be carried
out with funds received under this title;
``(3) a description of how the eligible agency will
evaluate and measure annually the effectiveness and
improvement of the adult education, basic skills, and family
literacy education programs based on the performance measures
described in section 212 including--
``(A) how the eligible agency will evaluate and measure
annually such effectiveness on a grant-by-grant basis; and
``(B) how the eligible agency--
``(i) will hold eligible providers accountable regarding
the progress of such providers in improving the academic
achievement of participants in adult education programs under
this title and regarding the core indicators of performance
described in section 212(b)(2)(A); and
``(ii) will use technical assistance, sanctions, and
rewards (including allocation of grant funds based on
performance and termination of grant funds based on
nonperformance);
``(4) a description of the performance measures described
in section 212 and how such performance measures have
significantly improved adult education, basic skills, and
family literacy education programs in the State or outlying
area;
``(5) an assurance that the eligible agency will, in
addition to meeting all of the other requirements of this
title, award not less than one grant under this title to an
eligible provider that--
``(A) offers flexible schedules and necessary support
services (such as child care and transportation) to enable
individuals, including individuals with disabilities, or
individuals with other special needs, to participate in adult
education, basic skills, and family literacy education
programs; and
``(B) attempts to coordinate with support services that are
not provided under this title prior to using funds for adult
education, basic skills, and family literacy education
programs provided under this title for support services;
``(6) an assurance that the funds received under this title
will not be expended for any purpose other than for
activities under this title;
``(7) a description of how the eligible agency will fund
local activities in accordance with the measurable goals
described in section 231(d);
``(8) an assurance that the eligible agency will expend the
funds under this title only in a manner consistent with
fiscal requirements in section 241;
``(9) a description of the process that will be used for
public participation and comment with respect to the State
plan, which process--
``(A) shall include consultation with the State workforce
investment board, the State board responsible for
administering community or technical colleges, the Governor,
the State educational agency, the State board or agency
responsible for administering block grants for temporary
assistance to needy families under title IV of the Social
Security Act, the State council on disabilities, the State
vocational rehabilitation agency, other State agencies that
promote the improvement of adult education, basic skills, and
family literacy education programs, and direct providers of
such programs; and
``(B) may include consultation with the State agency on
higher education, institutions responsible for professional
development of adult education, basic skills, and family
literacy education programs instructors, representatives of
business and industry, refugee assistance programs, and
faith-based organizations;
``(10) a description of the eligible agency's strategies
for serving populations that include, at a minimum--
``(A) low-income individuals;
``(B) individuals with disabilities;
``(C) the unemployed;
``(D) the underemployed; and
``(E) individuals with multiple barriers to educational
enhancement, including individuals with limited English
proficiency;
``(11) a description of how the adult education, basic
skills, and family literacy education programs that will be
carried out with any funds received under this title will be
integrated with other adult education, career development,
and employment and training activities in the State or
outlying area served by the eligible agency;
``(12) a description of the steps the eligible agency will
take to ensure direct and equitable access, as required in
section 231(c)(1), including--
``(A) how the State will build the capacity of community-
based and faith-based organizations to provide adult
education, basic skills, and family literacy education
programs; and
``(B) how the State will increase the participation of
business and industry in adult education, basic skills, and
family literacy education programs;
``(13) an assessment of the adequacy of the system of the
State or outlying area to ensure teacher quality and a
description of how the State or outlying area will use funds
received under this subtitle to improve teacher quality,
including professional development on the use of
scientifically based research to improve instruction; and
``(14) a description of how the eligible agency will
consult with any State agency responsible for postsecondary
education to develop adult education that prepares students
to enter postsecondary education without the need for
remediation upon completion of secondary school equivalency
programs.
``(c) Plan Revisions.--When changes in conditions or other
factors require substantial revisions to an approved State
plan, the eligible agency shall submit the revisions of the
State plan to the Secretary.
``(d) Consultation.--The eligible agency shall--
``(1) submit the State plan, and any revisions to the State
plan, to the Governor, the chief State school officer, or the
State officer responsible for administering community or
technical colleges, or outlying area for review and comment;
and
``(2) ensure that any comments regarding the State plan by
the Governor, the chief State school officer, or the State
officer responsible for administering community or technical
colleges, and any revision to the State plan, are submitted
to the Secretary.
``(e) Plan Approval.--A State plan submitted to the
Secretary shall be approved by the Secretary only if the plan
is consistent with the specific provisions of this title.
``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
``(a) Program Authorized.--From funds made available under
section 222(a)(1) for a fiscal year, each eligible agency
shall carry out corrections education and education for other
institutionalized individuals.
``(b) Uses of Funds.--The funds described in subsection (a)
shall be used for the cost of educational programs for
criminal offenders in correctional institutions and for other
institutionalized individuals, including academic programs
for--
``(1) basic skills education;
``(2) special education programs as determined by the
eligible agency;
``(3) reading, writing, speaking, and math programs; and
``(4) secondary school credit or diploma programs or their
recognized equivalent.
``(c) Priority.--Each eligible agency that is using
assistance provided under this section to carry out a program
for criminal offenders within a correctional institution
shall give priority to serving individuals who are likely to
leave the correctional institution within 5 years of
participation in the program.
``(d) Definitions.--For purposes of this section:
``(1) Correctional institution.--The term `correctional
institution' means any--
``(A) prison;
``(B) jail;
``(C) reformatory;
``(D) work farm;
``(E) detention center; or
``(F) halfway house, community-based rehabilitation center,
or any other similar institution designed for the confinement
or rehabilitation of criminal offenders.
``(2) Criminal offender.--The term `criminal offender'
means any individual who is charged with, or convicted of,
any criminal offense.
[[Page H12323]]
``CHAPTER 3--LOCAL PROVISIONS
``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
``(a) Grants and Contracts.--From grant funds made
available under section 211(b), each eligible agency shall
award multiyear grants or contracts, on a competitive basis,
to eligible providers within the State or outlying area that
meet the conditions and requirements of this title to enable
the eligible providers to develop, implement, and improve
adult education, basic skills, and family literacy education
programs within the State.
``(b) Local Activities.--The eligible agency shall require
eligible providers receiving a grant or contract under
subsection (a) to establish or operate one or more programs
of instruction that provide services or instruction in one or
more of the following categories:
``(1) Adult education, basic skills, and family literacy
education programs (including proficiency in reading,
writing, speaking, and math).
``(2) Workplace literacy programs.
``(3) English language acquisition programs.
``(4) Family literacy education programs.
``(c) Direct and Equitable Access; Same Process.--Each
eligible agency receiving funds under this title shall ensure
that--
``(1) all eligible providers have direct and equitable
access to apply for grants or contracts under this section;
and
``(2) the same grant or contract announcement process and
application process is used for all eligible providers in the
State or outlying area.
``(d) Measurable Goals.--The eligible agency shall require
eligible providers receiving a grant or contract under
subsection (a) to demonstrate--
``(1) the eligible provider's measurable goals for
participant outcomes to be achieved annually on the core
indicators of performance and employment performance
indicators described in section 212(b)(2);
``(2) the past effectiveness of the eligible provider in
improving the basic academic skills of adults and, for
eligible providers receiving grants in the prior year, the
success of the eligible provider receiving funding under this
title in exceeding its performance goals in the prior year;
``(3) the commitment of the eligible provider to serve
individuals in the community who are the most in need of
basic academic skills instruction services, including
individuals who are low-income or have minimal reading,
writing, speaking, and math skills, or limited English
proficiency;
``(4) the program--
``(A) is of sufficient intensity and duration for
participants to achieve substantial learning gains; and
``(B) uses instructional practices that include the
essential components of reading instruction;
``(5) educational practices are based on scientifically
based research;
``(6) the activities of the eligible provider effectively
employ advances in technology, as appropriate, including the
use of computers;
``(7) the activities provide instruction in real-life
contexts, when appropriate, to ensure that an individual has
the skills needed to compete in the workplace and exercise
the rights and responsibilities of citizenship;
``(8) the activities are staffed by well-trained
instructors, counselors, and administrators;
``(9) the activities are coordinated with other available
resources in the community, such as through strong links with
elementary schools and secondary schools, postsecondary
educational institutions, one-stop centers, job training
programs, community-based and faith-based organizations, and
social service agencies;
``(10) the activities offer flexible schedules and support
services (such as child care and transportation) that are
necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete
programs;
``(11) the activities include a high-quality information
management system that has the capacity to report measurable
participant outcomes and to monitor program performance
against the performance measures established by the eligible
agency;
``(12) the local communities have a demonstrated need for
additional English language acquisition programs;
``(13) the capacity of the eligible provider to produce
valid information on performance results, including
enrollments and measurable participant outcomes;
``(14) adult education, basic skills, and family literacy
education programs offer rigorous reading, writing, speaking,
and math content that are based on scientifically based
research; and
``(15) applications of technology, and services to be
provided by the eligible providers, are of sufficient
intensity and duration to increase the amount and quality of
learning and lead to measurable learning gains within
specified time periods.
``(e) Special Rule.--Eligible providers may use grant funds
under this title to serve children participating in family
literacy programs assisted under this part, provided that
other sources of funds available to provide similar services
for such children are used first.
``SEC. 232. LOCAL APPLICATION.
``Each eligible provider desiring a grant or contract under
this title shall submit an application to the eligible agency
containing such information and assurances as the eligible
agency may require, including--
``(1) a description of how funds awarded under this title
will be spent consistent with the requirements of this title;
``(2) a description of any cooperative arrangements the
eligible provider has with other agencies, institutions, or
organizations for the delivery of adult education, basic
skills, and family literacy education programs; and
``(3) each of the demonstrations required by section
231(d).
``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
``(a) In General.--Subject to subsection (b), of the amount
that is made available under this title to an eligible
provider--
``(1) at least 95 percent shall be expended for carrying
out adult education, basic skills, and family literacy
education programs; and
``(2) the remaining amount shall be used for planning,
administration, personnel and professional development,
development of measurable goals in reading, writing,
speaking, and math, and interagency coordination.
``(b) Special Rule.--In cases where the cost limits
described in subsection (a) are too restrictive to allow for
adequate planning, administration, personnel development, and
interagency coordination, the eligible provider may negotiate
with the eligible agency in order to determine an adequate
level of funds to be used for noninstructional purposes.
``CHAPTER 4--GENERAL PROVISIONS
``SEC. 241. ADMINISTRATIVE PROVISIONS.
``(a) Supplement Not Supplant.--Funds made available for
adult education, basic skills, and family literacy education
programs under this title shall supplement and not supplant
other State or local public funds expended for adult
education, basic skills, and family literacy education
programs.
``(b) Maintenance of Effort.--
``(1) In general.--
``(A) Determination.--An eligible agency may receive funds
under this title for any fiscal year if the Secretary finds
that the fiscal effort per student or the aggregate
expenditures of such eligible agency for activities under
this title, in the second preceding fiscal year, were not
less than 90 percent of the fiscal effort per student or the
aggregate expenditures of such eligible agency for adult
education, basic skills, and family literacy education
programs, in the third preceding fiscal year.
``(B) Proportionate reduction.--Subject to paragraphs (2),
(3), and (4), for any fiscal year with respect to which the
Secretary determines under subparagraph (A) that the fiscal
effort or the aggregate expenditures of an eligible agency
for the preceding program year were less than such effort or
expenditures for the second preceding program year, the
Secretary--
``(i) shall determine the percentage decreases in such
effort or in such expenditures; and
``(ii) shall decrease the payment made under this title for
such program year to the agency for adult education, basic
skills, and family literacy education programs by the lesser
of such percentages.
``(2) Computation.--In computing the fiscal effort and
aggregate expenditures under paragraph (1), the Secretary
shall exclude capital expenditures and special one-time
project costs.
``(3) Decrease in federal support.--If the amount made
available for adult education, basic skills, and family
literacy education programs under this title for a fiscal
year is less than the amount made available for adult
education, basic skills, and family literacy education
programs under this title for the preceding fiscal year, then
the fiscal effort per student and the aggregate expenditures
of an eligible agency required in order to avoid a reduction
under paragraph (1)(B) shall be decreased by the same
percentage as the percentage decrease in the amount so made
available.
``(4) Waiver.--The Secretary may waive the requirements of
this subsection for not more than 1 fiscal year, if the
Secretary determines that a waiver would be equitable due to
exceptional or uncontrollable circumstances, such as a
natural disaster or an unforeseen and precipitous decline in
the financial resources of the State or outlying area of the
eligible agency. If the Secretary grants a waiver under the
preceding sentence for a fiscal year, the level of effort
required under paragraph (1) shall not be reduced in the
subsequent fiscal year because of the waiver.
``SEC. 242. NATIONAL INSTITUTE FOR LITERACY.
``(a) In General.--
``(1) Purpose.--The purpose of the National Institute for
Literacy is to promote the improvement of literacy, including
skills in reading, writing, and English language acquisition
for children, youth, and adults, through practices derived
from the findings of scientifically based research.
``(2) Establishment.--There is established a National
Institute for Literacy (in this section referred to as the
`Institute'). The Institute shall be administered under the
terms of an interagency agreement entered into, reviewed
annually, and modified as needed by the Secretary of
Education with the Secretary of Health and Human Services and
the Secretary of Labor (in this section referred to as the
`Interagency Group').
[[Page H12324]]
``(3) Offices.--The Institute shall have offices separate
from the offices of the Department of Education, the
Department of Health and Human Services, and the Department
of Labor.
``(4) Administrative support.--The Department of Education
shall provide administrative support for the Institute.
``(5) Daily operations.--The Director of the Institute
shall administer the daily operations of the Institute.
``(b) Duties.--
``(1) In general.--To carry out its purpose, the Institute
may--
``(A) identify and disseminate rigorous scientific research
on the effectiveness of instructional practices and
organizational strategies relating to programs on the
acquisition of skills in reading, writing, and English
language acquisition for children, youth, and adults;
``(B) create and widely disseminate materials about the
acquisition and application of skills in reading, writing,
and English language acquisition for children, youth, and
adults based on scientifically based research;
``(C) ensure a broad understanding of scientifically based
research on reading, writing, and English language
acquisition for children, youth, and adults among Federal
agencies with responsibilities for administering programs
that provide related services, including State and local
educational agencies;
``(D) facilitate coordination and information sharing among
national organizations and associations interested in
programs that provide services to improve skills in reading,
writing, and English language acquisition for children,
youth, and adults;
``(E) coordinate with the appropriate offices in the
Department of Education, the Department of Health and Human
Services, the Department of Labor, and other Federal agencies
to apply the findings of scientifically based research
related to programs on reading, writing, and English language
acquisition for children, youth, and adults;
``(F) establish a national electronic database and Internet
site describing and fostering communication on scientifically
based programs in reading, writing, and English language
acquisition for children, youth, and adults, including
professional development programs; and
``(G) provide opportunities for technical assistance,
meetings, and conferences that will foster increased
coordination among Federal, State, and local agencies and
entities and improvement of reading, writing, and English
language acquisition skills for children, youth, and adults.
``(2) Coordination.--In identifying scientifically based
research on reading, writing, and English language
acquisition for children, youth, and adults, the Institute
shall use standards for research quality that are consistent
with those established by the Institute of Education
Sciences.
``(3) Grants, contracts, and cooperative agreements.--
``(A) In general.--The Institute may award grants to, or
enter into contracts or cooperative agreements with,
individuals, public or private institutions, agencies,
organizations, or consortia of such individuals,
institutions, agencies, or organizations, to carry out the
activities of the Institute.
``(B) Regulations.--The Director may adopt the general
administrative regulations of the Department of Education, as
applicable, for use by the Institute.
``(C) Relation to other laws.--The duties and powers of the
Institute under this title are in addition to the duties and
powers of the Institute under subparts 1, 2, and 3 of part B
of the Elementary and Secondary Education Act of 1965
(commonly referred to as Reading First, Early Reading First,
and the William F. Goodling Even Start Family Literacy
Program, respectively).
``(c) Visiting Scholars.--The Institute may establish a
visiting scholars program, with such stipends and allowances
as the Director considers necessary, for outstanding
researchers, scholars, and individuals who--
``(1) have careers in adult education, workforce
development, or scientifically based reading, writing, or
English language acquisition; and
``(2) can assist the Institute in translating research into
practice and providing analysis that advances instruction in
the fields of reading, writing, and English language
acquisition for children, youth, and adults.
``(d) Interns and Volunteers.--The Institute, in
consultation with the National Institute for Literacy
Advisory Board, may award paid and unpaid internships to
individuals seeking to assist the Institute in carrying out
its purpose. Notwithstanding section 1342 of title 31, United
States Code, the Institute may accept and use voluntary and
uncompensated services as the Institute determines necessary.
``(e) National Institute for Literacy Advisory Board.--
``(1) Establishment.--
``(A) In general.--There shall be a National Institute for
Literacy Advisory Board (in this section referred to as the
`Board'), which shall consist of 10 individuals appointed by
the President with the advice and consent of the Senate.
``(B) Qualifications.--The Board shall be composed of
individuals who--
``(i) are not otherwise officers or employees of the
Federal Government; and
``(ii) are knowledgeable about current effective
scientifically based research findings on instruction in
reading, writing, and English language acquisition for
children, youth, and adults.
``(C) Composition.--The Board may include--
``(i) representatives of business, industry, labor,
literacy organizations, adult education providers, community
colleges, students with disabilities, and State agencies,
including State directors of adult education; and
``(ii) individuals who, and representatives of entities
that, have been successful in improving skills in reading,
writing, and English language acquisition for children,
youth, and adults.
``(2) Duties.--The Board shall--
``(A) make recommendations concerning the appointment of
the Director of the Institute;
``(B) provide independent advice on the operation of the
Institute;
``(C) receive reports from the Interagency Group and the
Director; and
``(D) review the biennial report to the Congress under
subsection (k).
``(3) Federal advisory committee act.--Except as otherwise
provided, the Board shall be subject to the provisions of the
Federal Advisory Committee Act.
``(4) Appointments.--
``(A) In general.--Each member of the Board shall be
appointed for a term of 3 years, except that the initial
terms for members may be 1, 2, or 3 years in order to
establish a rotation in which one-third of the members are
selected each year. Any such member may be appointed for not
more than 2 consecutive terms.
``(B) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only
for the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office.
``(5) Quorum.--A majority of the members of the Board shall
constitute a quorum, but a lesser number may hold hearings. A
recommendation of the Board may be passed only by a majority
of the Board's members present at a meeting for which there
is a quorum.
``(6) Election of officers.--The Chairperson and Vice
Chairperson of the Board shall be elected by the members of
the Board. The term of office of the Chairperson and Vice
Chairperson shall be 2 years.
``(7) Meetings.--The Board shall meet at the call of the
Chairperson or a majority of the members of the Board.
``(f) Gifts, Bequests, and Devises.--
``(1) In general.--The Institute may accept, administer,
and use gifts or donations of services, money, or property,
whether real or personal, tangible or intangible.
``(2) Rules.--The Board shall establish written rules
setting forth the criteria to be used by the Institute in
determining whether the acceptance of contributions of
services, money, or property whether real or personal,
tangible or intangible, would reflect unfavorably upon the
ability of the Institute or any employee to carry out the
responsibilities of the Institute or employee, or official
duties, in a fair and objective manner, or would compromise
the integrity, or the appearance of the integrity, of the
Institute's programs or any official involved in those
programs.
``(g) Mails.--The Board and the Institute may use the
United States mails in the same manner and under the same
conditions as other departments and agencies of the United
States.
``(h) Director.--The Secretary of Education, after
considering recommendations made by the Board and consulting
with the Interagency Group, shall appoint and fix the pay of
the Director of the Institute and, when necessary, shall
appoint an Interim Director of the Institute.
``(i) Applicability of Certain Civil Service Laws.--The
Director and staff of the Institute may be appointed without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, and may be
paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of that title relating to
classification and General Schedule pay rates, except that an
individual so appointed may not receive pay in excess of the
annual rate of basic pay payable for level IV of the
Executive Schedule.
``(j) Experts and Consultants.--The Institute may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code.
``(k) Biennial Report.--
``(1) In general.--The Institute shall submit a report
biennially to the Committee on Education and Labor of the
House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate. Each report
submitted under this subsection shall include--
``(A) a comprehensive and detailed description of the
Institute's operations, activities, financial condition, and
accomplishments in identifying and describing programs on
reading, writing, and English language acquisition for
children, youth, and adults for the period covered by the
report; and
``(B) a description of how plans for the operation of the
Institute for the succeeding 2 fiscal years will facilitate
achievement of the purpose of the Institute.
``(2) First report.--The Institute shall submit its first
report under this subsection to the Congress not later than 1
year after the date of the enactment of the Workforce
Investment Improvement Act of 2007.
[[Page H12325]]
``(l) Additional Funding.--In addition to the funds
authorized under section 205 and reserved for the Institute
under section 211, the Secretary of Education, the Secretary
of Health and Human Services, the Secretary of Labor, or the
head of any other Federal agency or department that
participates in the activities of the Institute may provide
funds to the Institute for activities that the Institute is
authorized to perform under this section.
``SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.
``The Secretary shall establish and carry out a program of
national leadership activities that may include the
following:
``(1) Technical assistance, on request, including
assistance--
``(A) on request to volunteer community- and faith-based
organizations, including but not limited to, improving their
fiscal management, research-based instruction, and reporting
requirements, and the development of measurable objectives to
carry out the requirements of this title;
``(B) in developing valid, measurable, and reliable
performance data, and using performance information for the
improvement of adult education basic skills, English language
acquisition, and family literacy education programs;
``(C) on adult education professional development; and
``(D) in using distance learning and improving the
application of technology in the classroom, including
instruction in English language acquisition for individuals
who have limited English proficiency.
``(2) Providing for the conduct of research on national
literacy basic skill acquisition levels among adults,
including the number of limited English proficient adults
functioning at different levels of reading proficiency.
``(3) Improving the coordination, efficiency, and
effectiveness of adult education and workforce development
services at the national, State, and local levels.
``(4) Determining how participation in adult education
basic skills, English language acquisition, and family
literacy education programs prepares individuals for entry
into and success in postsecondary education and employment,
and in the case of prison-based services, the effect on
recidivism.
``(5) Evaluating how different types of providers,
including community and faith-based organizations or private
for-profit agencies measurably improve the skills of
participants in adult education basic skills, English
language acquisition, and family literacy education programs.
``(6) Identifying model integrated basic and workplace
skills education programs, including programs for individuals
with limited English proficiency coordinated literacy and
employment services, and effective strategies for serving
adults with disabilities.
``(7) Supporting the development of an entity that would
produce and distribute technology-based programs and
materials for adult education, basic skills, and family
literacy education programs using an intercommunication
system, as that term is defined in section 397 of the
Communications Act of 1934, and expand the effective outreach
and use of such programs and materials to adult education
eligible providers.
``(8) Initiating other activities designed to improve the
measurable quality and effectiveness of adult education basic
skills, English language acquisition, and family literacy
education programs nationwide.''.
Subtitle C--Amendments to the Wagner-Peyser Act
SEC. 461. AMENDMENTS TO THE WAGNER-PEYSER ACT.
The Wagner-Peyser Act (29 U.S.C. 49 et seq.) is amended--
(1) by striking sections 1 through 13;
(2) in section 14 by inserting ``of Labor'' after
``Secretary''; and
(3) by amending section 15 to read as follows:
``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.
``(a) System Content.--
``(1) In general.--The Secretary of Labor, in accordance
with the provisions of this section, shall oversee the
development, maintenance, and continuous improvement of a
nationwide workforce and labor market information system that
includes--
``(A) statistical data from cooperative statistical survey
and projection programs and data from administrative
reporting systems that, taken together, enumerate, estimate,
and project employment opportunities and conditions at
national, State, and local levels in a timely manner,
including statistics on--
``(i) employment and unemployment status of national,
State, and local populations, including self-employed, part-
time, and seasonal workers;
``(ii) industrial distribution of occupations, as well as
current and projected employment opportunities, wages,
benefits (where data is available), and skill trends by
occupation and industry, with particular attention paid to
State and local conditions;
``(iii) the incidence of, industrial and geographical
location of, and number of workers displaced by, permanent
layoffs and plant closings; and
``(iv) employment and earnings information maintained in a
longitudinal manner to be used for research and program
evaluation;
``(B) information on State and local employment
opportunities, and other appropriate statistical data related
to labor market dynamics, which--
``(i) shall be current and comprehensive;
``(ii) shall meet the needs identified through the
consultations described in subparagraphs (A) and (B) of
subsection (e)(2); and
``(iii) shall meet the needs for the information identified
in section 134(d);
``(C) technical standards (which the Secretary shall
publish annually) for data and information described in
subparagraphs (A) and (B) that, at a minimum, meet the
criteria of chapter 35 of title 44, United States Code;
``(D) procedures to ensure compatibility and additivity of
the data and information described in subparagraphs (A) and
(B) from national, State, and local levels;
``(E) procedures to support standardization and aggregation
of data from administrative reporting systems described in
subparagraph (A) of employment-related programs;
``(F) analysis of data and information described in
subparagraphs (A) and (B) for uses such as--
``(i) national, State, and local policymaking;
``(ii) implementation of Federal policies (including
allocation formulas);
``(iii) program planning and evaluation; and
``(iv) researching labor market dynamics;
``(G) wide dissemination of such data, information, and
analysis in a user-friendly manner and voluntary technical
standards for dissemination mechanisms; and
``(H) programs of--
``(i) training for effective data dissemination;
``(ii) research and demonstration; and
``(iii) programs and technical assistance.
``(2) Information to be confidential.--
``(A) In general.--No officer or employee of the Federal
Government or agent of the Federal Government may--
``(i) use any submission that is furnished for exclusively
statistical purposes under the provisions of this section for
any purpose other than the statistical purposes for which the
submission is furnished;
``(ii) disclose to the public any publication or media
transmittal of the data contained in the submission described
in clause (i) that permits information concerning an
individual subject to be reasonably inferred by either direct
or indirect means; or
``(iii) permit anyone other than a sworn officer, employee,
or agent of any Federal department or agency, or a contractor
(including an employee of a contractor) of such department or
agency, to examine an individual submission described in
clause (i),
without the consent of the individual, agency, or other
person who is the subject of the submission or provides that
submission.
``(B) Immunity from legal process.--Any submission
(including any data derived from the submission) that is
collected and retained by a Federal department or agency, or
an officer, employee, agent, or contractor of such a
department or agency, for exclusively statistical purposes
under this section shall be immune from the legal process and
shall not, without the consent of the individual, agency, or
other person who is the subject of the submission or provides
that submission, be admitted as evidence or used for any
purpose in any action, suit, or other judicial or
administrative proceeding.
``(C) Rule of construction.--Nothing in this section shall
be construed to provide immunity from the legal process for
such submission (including any data derived from the
submission) if the submission is in the possession of any
person, agency, or entity other than the Federal Government
or an officer, employee, agent, or contractor of the Federal
Government, or if the submission is independently collected,
retained, or produced for purposes other than the purposes of
this Act.
``(b) System Responsibilities.--
``(1) In general.--The workforce and labor market
information system described in subsection (a) shall be
planned, administered, overseen, and evaluated through a
cooperative governance structure involving the Federal
Government and States.
``(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of workforce and
labor market information for the system, shall carry out the
following duties:
``(A) Assign responsibilities within the Department of
Labor for elements of the workforce and labor market
information system described in subsection (a) to ensure that
all statistical and administrative data collected is
consistent with appropriate Bureau of Labor Statistics
standards and definitions.
``(B) Actively seek the cooperation of other Federal
agencies to establish and maintain mechanisms for ensuring
complementarity and nonduplication in the development and
operation of statistical and administrative data collection
activities.
``(C) Eliminate gaps and duplication in statistical
undertakings, with the systemization of wage surveys as an
early priority.
``(D) In collaboration with the Bureau of Labor Statistics
and States, develop and maintain the elements of the
workforce and labor market information system described in
subsection (a), including the development of consistent
procedures and definitions for use by the States in
collecting the data and information described in
subparagraphs (A) and (B) of subsection (a)(1).
``(E) Establish procedures for the system to ensure that--
``(i) such data and information are timely;
[[Page H12326]]
``(ii) paperwork and reporting for the system are reduced
to a minimum; and
``(iii) States and localities are fully involved in the
development and continuous improvement of the system at all
levels.
``(c) National Electronic Tools To Provide Services.--The
Secretary is authorized to assist in the development of
national electronic tools that may be used to facilitate the
delivery of work ready services described in section 134 and
to provide workforce information to individuals through the
one-stop delivery systems described in section 121 and
through other appropriate delivery systems.
``(d) Coordination With the States.--
``(1) In general.--The Secretary, working through the
Bureau of Labor Statistics and the Employment and Training
Administration, shall regularly consult with representatives
of State agencies carrying out workforce information
activities regarding strategies for improving the workforce
and labor market information system.
``(2) Formal consultations.--At least twice each year, the
Secretary, working through the Bureau of Labor Statistics,
shall conduct formal consultations regarding programs carried
out by the Bureau of Labor Statistics with representatives of
each of the 6 Federal regions of the Bureau of Labor
Statistics, elected (pursuant to a process established by the
Secretary) from the State directors affiliated with State
agencies that perform the duties described in subsection
(e)(2).
``(e) State Responsibilities.--
``(1) In general.--In order to receive Federal financial
assistance under this section, the Governor of a State
shall--
``(A) be responsible for the management of the portions of
the workforce and labor market information system described
in subsection (a) that comprise a statewide workforce and
labor market information system and for the State's
participation in the development of the annual plan;
``(B) establish a process for the oversight of such system;
``(C) consult with State and local employers, participants,
and local workforce investment boards about the labor market
relevance of the data to be collected and disseminated
through the statewide workforce and labor market information
system;
``(D) consult with State educational agencies and local
educational agencies concerning the provision of employment
statistics in order to meet the needs of secondary school and
postsecondary school students who seek such information;
``(E) collect and disseminate for the system, on behalf of
the State and localities in the State, the information and
data described in subparagraphs (A) and (B) of subsection
(a)(1);
``(F) maintain and continuously improve the statewide
workforce and labor market information system in accordance
with this section;
``(G) perform contract and grant responsibilities for data
collection, analysis, and dissemination for such system;
``(H) conduct such other data collection, analysis, and
dissemination activities as will ensure an effective
statewide workforce and labor market information system;
``(I) actively seek the participation of other State and
local agencies in data collection, analysis, and
dissemination activities in order to ensure complementarity,
compatibility, and usefulness of data;
``(J) participate in the development of the annual plan
described in subsection (c); and
``(K) utilize the quarterly records described in section
136(f)(2) of the Workforce Investment Act of 1998 to assist
the State and other States in measuring State progress on
State performance measures.
``(2) Rule of construction.--Nothing in this section shall
be construed as limiting the ability of a Governor to conduct
additional data collection, analysis, and dissemination
activities with State funds or with Federal funds from
sources other than this section.
``(f) Nonduplication Requirement.--None of the functions
and activities carried out pursuant to this section shall
duplicate the functions and activities carried out under the
Carl D. Perkins Vocational and Applied Technology Education
Act (20 U.S.C. 2301 et seq.).
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary for each of the fiscal years 2008
through 2012.
``(h) Definition.--In this section, the term `local area'
means the smallest geographical area for which data can be
produced with statistical reliability.''.
Subtitle D--Amendments to the Rehabilitation Act of 1973
SEC. 471. FINDINGS.
Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C.
701(a)) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(7) there is a substantial need to improve and expand
services for students with disabilities under this Act.''.
SEC. 472. REHABILITATION SERVICES ADMINISTRATION.
Section 3(a) of the Rehabilitation Act of 1973 (29 U.S.C.
702(a)) is amended--
(1) by striking ``Office of the Secretary'' and inserting
``Department of Education'';
(2) by striking ``President by and with the advice and
consent of the Senate'' and inserting ``Secretary, except
that the Commissioner appointed under the authority existing
on the day prior to the date of enactment of the Workforce
Investment Improvement Act of 2007 may continue to serve in
the former capacity''; and
(3) by striking ``, and the Commissioner shall be the
principal officer,''.
SEC. 473. DIRECTOR.
(a) In General.--The Rehabilitation Act of 1973 (29 U.S.C.
701 et seq.) is amended--
(1) by striking ``Commissioner'' each place it appears,
except in sections 3(a) (as amended by section 472) and 21,
and inserting ``Director'';
(2) in section 100(d)(2)(B), by striking ``commissioner''
and inserting ``director'';
(3) in section 706, by striking ``commissioner'' and
inserting ``director''; and
(4) in section 723(a)(3), by striking ``commissioner'' and
inserting ``director''.
(b) Exception.--Section 21 of the Rehabilitation Act of
1973 (29 U.S.C. 718) is amended--
(1) in subsection (b)(1)--
(A) by striking ``Commissioner'' the first place it appears
and inserting ``Director of the Rehabilitation Services
Administration''; and
(B) by striking ``(referred to in this subsection as the
`Director')''; and
(2) by striking ``Commissioner and the Director'' each
place it appears and inserting ``both such Directors''.
SEC. 474. DEFINITIONS.
Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705)
is amended--
(1) by redesignating paragraphs (35) through (39) as
paragraphs (36), (37), (38), (40), and (41), respectively;
(2) in subparagraph (A)(ii) of paragraph (36) (as
redesignated in paragraph (1)), by striking ``paragraph
(36)(C)'' and inserting ``paragraph (37)(C)'';
(3) by inserting after paragraph (34) the following:
``(35)(A) The term `student with a disability' means an
individual with a disability who--
``(i) is not younger than 16 and not older than 21;
``(ii) has been determined to be eligible under section
102(a) for assistance under this title; and
``(iii)(I) is eligible for, and is receiving, special
education under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.); or
``(II) is an individual with a disability, for purposes of
section 504.
``(B) The term `students with disabilities' means more than
1 student with a disability.''; and
(4) by inserting after paragraph (38) (as redesignated by
paragraph (1)) the following:
``(39) The term `transition services expansion year'
means--
``(A) the first fiscal year for which the amount
appropriated under section 100(b) exceeds the amount
appropriated under section 100(b) for fiscal year 2004 by not
less than $100,000,000; and
``(B) each fiscal year subsequent to that first fiscal
year.''.
SEC. 475. STATE PLAN.
(a) Coordination With Education Officials and Assistive
Technology Programs.--Section 101(a)(11) of the
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(11)) is
amended--
(1) in subparagraph (D)(i) by inserting ``, which may be
provided using alternative means of meeting participation
(such as video conferences and conference calls)'' before the
semicolon; and
(2) by adding at the end the following:
``(G) Coordination with assistive technology programs.--The
State plan shall include an assurance that the designated
State unit and the lead agency responsible for carrying out
duties under the Assistive Technology Act of 1998 (29 U.S.C.
3001), as amended, have developed working relationships and
coordinate their activities.''.
(b) Assessment and Strategies.--Section 101(a)(15) of the
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(15)) is
amended--
(1) in subparagraph (A)
(A) in clause (i)--
(i) in subclause (II), by striking ``and'' at the end;
(ii) in subclause (III), by adding ``and'' at the end; and
(iii) by adding at the end the following:
``(IV) in a transition services expansion year, students
with disabilities, including their need for transition
services;''; and
(B) by redesignating clauses (ii) and (iii) as clauses
(iii) and (iv), respectively, and inserting after clause (i)
the following:
``(ii) include an assessment of the transition services
provided under this Act, and coordinated with transition
services under the Individuals with Disabilities Education
Act, as to those services meeting the needs of individuals
with disabilities;''; and
(2) in subparagraph (D)--
(A) by redesignating clauses (iii), (iv), and (v) as
clauses (iv), (v), and (vi), respectively; and
(B) by inserting after clause (ii) the following:
``(iii) in a transition services expansion year, the
methods to be used to improve and expand vocational
rehabilitation services for students with disabilities,
including the coordination of services designed to facilitate
the transition of such students from the receipt of
educational services in school to the receipt of vocational
rehabilitation services under this title or to postsecondary
education or employment;''.
[[Page H12327]]
(c) Services for Students With Disabilities.--Section
101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a))
is further amended by adding at the end the following:
``(25) Services for students with disabilities.--The State
plan for a transition services expansion year shall provide
an assurance satisfactory to the Secretary that the State--
``(A) has developed and implemented strategies to address
the needs identified in the assessment described in paragraph
(15), and achieve the goals and priorities identified by the
State, to improve and expand vocational rehabilitation
services for students with disabilities on a statewide basis
in accordance with paragraph (15); and
``(B) from funds reserved under section 110A, shall carry
out programs or activities designed to improve and expand
vocational rehabilitation services for students with
disabilities that--
``(i) facilitate the transition of the students with
disabilities from the receipt of educational services in
school, to the receipt of vocational rehabilitation services
under this title, including, at a minimum, those services
specified in the interagency agreement required in paragraph
(11)(D);
``(ii) improve the achievement of post-school goals of
students with disabilities, including improving the
achievement through participation (as appropriate when
vocational goals are discussed) in meetings regarding
individualized education programs developed under section 614
of the Individuals with Disabilities Education Act (20 U.S.C.
1414);
``(iii) provide vocational guidance, career exploration
services, and job search skills and strategies and technical
assistance to students with disabilities;
``(iv) support the provision of training and technical
assistance to State and local educational agency and
designated State agency personnel responsible for the
planning and provision of services to students with
disabilities; and
``(v) support outreach activities to students with
disabilities who are eligible for, and need, services under
this title.''.
SEC. 476. SCOPE OF SERVICES.
Section 103 of the Rehabilitation Act of 1973 (29 U.S.C.
723) is amended--
(1) in subsection (a), by striking paragraph (15) and
inserting the following:
``(15) transition services for students with disabilities,
that facilitate the achievement of the employment outcome
identified in the individualized plan for employment,
including, in a transition services expansion year, services
described in clauses (i) through (iii) of section
101(a)(25)(B);'';
(2) in subsection (b), by striking paragraph (6) and
inserting the following:
``(6)(A)(i) Consultation and technical assistance services
to assist State and local educational agencies in planning
for the transition of students with disabilities from school
to post-school activities, including employment.
``(ii) In a transition services expansion year, training
and technical assistance described in section
101(a)(25)(B)(iv).
``(B) In a transition services expansion year, services for
groups of individuals with disabilities who meet the
requirements of clauses (i) and (iii) of section 7(35)(A),
including services described in clauses (i), (ii), (iii), and
(v) of section 101(a)(25)(B), to assist in the transition
from school to post-school activities.''; and
(3) in subsection (b) by inserting at the end, the
following:
``(7) The establishment, development, or improvement of
assistive technology demonstration, loan, reutilization, or
financing programs in coordination with activities authorized
under the Assistive Technology Act of 1998 (29 U.S.C. 3001),
as amended, to promote access to assistive technology for
individuals with disabilities and employers.''.
SEC. 477. STANDARDS AND INDICATORS.
Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C.
726(a)) is amended by striking paragraph (1)(C) and all that
follows through paragraph (2) and inserting the following:
``(2) Measures.--The standards and indicators shall include
outcome and related measures of program performance that--
``(A) facilitate the accomplishment of the purpose and
policy of this title;
``(B) to the maximum extent practicable, are consistent
with the core indicators of performance, and corresponding
State adjusted levels of performance, established under
section 136(b) of the Workforce Investment Act of 1998 (29
U.S.C. 2871(b)); and
``(C) include measures of the program's performance with
respect to the transition to post-school vocational
activities, and achievement of the post-school vocational
goals, of students with disabilities served under the
program.''.
SEC. 478. RESERVATION FOR EXPANDED TRANSITION SERVICES.
The Rehabilitation Act of 1973 is amended by inserting
after section 110 (29 U.S.C. 730) the following:
``SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.
``(a) Reservation.--From the State allotment under section
110 in a transition services expansion year, each State shall
reserve an amount calculated by the Director under subsection
(b) to carry out programs and activities under sections
101(a)(25)(B) and 103(b)(6).
``(b) Calculation.--The Director shall calculate the amount
to be reserved for such programs and activities for a fiscal
year by each State by multiplying $50,000,000 by the
percentage determined by dividing--
``(1) the amount allotted to that State under section 110
for the prior fiscal year, by
``(2) the total amount allotted to all States under section
110 for that prior fiscal year.''.
SEC. 479. CLIENT ASSISTANCE PROGRAM.
Section 112(e)(1) of the Rehabilitation Act of 1973 (29
U.S.C. 732(e)(1)) is amended by redesignating subparagraph
(D) as subparagraph (E) and inserting after subparagraph (C)
the following:
``(D) The Secretary shall make grants to the protection and
advocacy system serving the American Indian Consortium to
provide services in accordance with this section. The amount
of such grants shall be the same as provided to territories
under this subsection.''.
SEC. 480. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.
Section 509(g)(2) of the Rehabilitation Act of 1973 (29
U.S.C. 794e(g)(2)) is amended by striking ``was paid'' and
inserting ``was paid, except that program income generated
from such amount shall remain available to such system for
one additional fiscal year''.
SEC. 481. CHAIRPERSON.
Section 705(b)(5) of the Rehabilitation Act of 1973 (29
U.S.C. 796d(b)(5)) is amended to read as follows:
``(5) Chairperson.--The Council shall select a chairperson
from among the voting membership of the Council.''.
SEC. 482. AUTHORIZATIONS OF APPROPRIATIONS.
The Rehabilitation Act of 1973 is further amended--
(1) in section 100(b)(1) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008 through
2012'';
(2) in section 100(d)(1)(B) by striking ``fiscal year
2003'' and inserting ``fiscal year 2012'';
(3) in section 110(c) by amending paragraph (2) to read as
follows:
``(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary, not less than 1 percent and not
more than 1.5 percent of the amount referred to in paragraph
(1) for each of fiscal years 2008 through 2012.'';
(4) in section 112(h) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008 through
2012'';
(5) in section 201(a) by striking ``fiscal years 1999
through 2003'' each place it appears and inserting ``fiscal
years 2008 through 2012'';
(6) in section 302(i) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008 through
2012'';
(7) in section 303(e) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008 through
2012'';
(8) in section 304(b) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008 through
2012'';
(9) in section 305(b) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008 through
2012'';
(10) in section 405 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2008 through 2012'';
(11) in section 502(j) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008 through
2012'';
(12) in section 509(l) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008 through
2012'';
(13) in section 612 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2008 through 2012'';
(14) in section 628 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2008 through 2012'';
(15) in section 714 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2008 through 2012'';
(16) in section 727 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2008 through 2012''; and
(17) in section 753 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2008 through 2012''.
SEC. 483. CONFORMING AMENDMENT.
Section 1(b) of the Rehabilitation Act of 1973 is amended
by inserting after the item relating to section 110 the
following:
``Sec. 110A. Reservation for expanded transition services.''.
SEC. 484. HELEN KELLER NATIONAL CENTER ACT.
(a) General Authorization of Appropriations.--The first
sentence of section 205(a) of the Helen Keller National
Center Act (29 U.S.C. 1904(a)) is amended by striking ``1999
through 2003'' and inserting ``2008 through 2012''.
(b) Helen Keller National Center Federal Endowment Fund.--
The first sentence of section 208(h) of such Act (29 U.S.C.
1907(h)) is amended by striking ``1999 through 2003'' and
inserting ``2008 through 2012''.
Subtitle E--Transition and Effective Date
SEC. 491. TRANSITION PROVISIONS.
The Secretary of Labor shall take such actions as the
Secretary determines to be appropriate to provide for the
orderly implementation of this title.
SEC. 492. EFFECTIVE DATE.
Except as otherwise provided in this title, this title and
the amendments made by this title, shall take effect on the
date of enactment of this Act.
The SPEAKER pro tempore. Pursuant to House Resolution 781, the
gentleman from Louisiana (Mr. McCrery) and a Member opposed each will
control 30 minutes.
[[Page H12328]]
Mr. LEVIN. Mr. Speaker, I ask that the time in opposition be
controlled by the gentleman from Washington (Mr. McDermott).
The SPEAKER pro tempore. Is the gentleman from Washington opposed to
the amendment?
Mr. McDERMOTT. Yes.
The SPEAKER pro tempore. The gentleman will control 30 minutes.
The Chair recognizes the gentleman from Louisiana.
Mr. McCRERY. Mr. Speaker, the amendment I offer, along with Mr.
McKeon, is a substitute for the bill that is before the House this
afternoon.
Our amendment would reform and reauthorize for 5 years the Trade
Adjustment Assistance program, and we believe our substitute would
strengthen and improve not only TAA but the Workforce Investment Act
program as well.
{time} 1330
Our bill would better equip workers affected by trade, globalization,
and other causes of job loss with the skills needed to adjust to
changes in the global economy.
Our Republican alternative consists of four related pieces of
legislation separately introduced this year. Some of these are under
the jurisdiction of the Ways and Means Committee; others are under the
jurisdiction of the Education and Workforce Committee.
Among other things, our bill would provide more flexible training
options to get people into training sooner and back to good jobs more
quickly. For example, we've heard some discussion about the plant
closing notice. The bill before the House this afternoon would expand
the amount of time from 60 days to 90 days that a plant company would
have to give notice to employees of either plant closure or a
substantial layoff at that plant.
Under the current constriction of TAA, a worker in that plant wishing
to, perhaps, go to job training at night after he gets off work,
waiting for the expiration of the 60-day notice or the 90-day notice
could not qualify for TAA training benefits. Our substitute would
correct that and allow that worker to take advantage of trade
adjustment assistance while he is still working in that plant that he
knows is going to be closed and where he would lose his job.
Number two, our bill would continue the health coverage tax credit
over our bill's 5-year life and increase the premium subsidy from 65
percent to 70 percent. Mr. Levin earlier talked about how the current
65-percent credit has not been enough to entice a high number of laid-
off workers under TAA to claim that credit and get their health care,
their health insurance through that method, and he is right. The take-
up rate on this benefit has been lower than we expected, and so some
adjustment is necessary. Whether that adjustment, the appropriate one
to provide the right level of enticement, is 70 percent, or in their
bill 85 percent, we don't know. We are willing to go up on that. We
think it is appropriate to do that. We've included 70 percent in our
bill. And the House should know that that means that a person who is
laid off and who is eligible for trade adjustment assistance can get,
under our substitute, 70 percent of the premium paid by the government.
So, that laid-off worker would only have to come up with 30 percent of
the premium to continue coverage under COBRA or to get some other
qualified insurance plan.
Number three, our bill would convert the wage insurance pilot program
for older workers into a transitional wage supplement for all TAA
workers, regardless of their age. It would be allowed for any worker
who became reemployed at low wages, low wages being defined as minimum
wage plus $2.40 an hour, and allow them to obtain, at the same time
they were getting this wage supplement, the health care tax credit and
additional trade adjustment training, which right now, if a person goes
back to work, under TAA he is not eligible for those benefits. So our
bill would expand the availability of the health care tax credit and
job training under TAA for people who go back to work and who are
receiving a wage supplement.
Number four, our bill would require indicators of performance to
evaluate the Trade Adjustment Assistance programs and their results.
Currently, TAA programs have no measure of performance, no way for us
to tell if these programs are being effective or if taxpayer dollars
are being wasted. Our bill would put in place those indicators of
performance to give us the idea of the efficiency of these programs.
Number five, in provisions affecting the unemployment insurance
program, our bill would allow States to apply for cost-neutral waivers
of current rules to operate wage insurance and other demonstration
programs to better assist unemployed workers in returning to work.
Now, Mr. Speaker, I have heard some in opposition to the Republican
substitute say that this would allow States to do away with their
unemployment insurance benefits. We certainly didn't intend that in our
substitute; we don't think that the language would allow that. But in
any event, a State would have to get a waiver from the executive branch
to take advantage of these provisions, and I doubt seriously if any
executive branch under any President would allow a State to just do
away with its unemployment insurance benefits. So, I don't really think
that's a valid argument in opposition to this increased flexibility
that could assist unemployed workers.
And number six, our bill also creates a new trade-related category
for qualification under the new markets tax credit. Businesses and
communities experiencing adverse economic effects due to trade would
qualify for an additional $500 million of new markets tax credits.
These tax credits, we believe, would bring significant amounts of
private capital into these economically disadvantaged areas to create
jobs to replace those that had been lost due to trade.
Mr. Speaker, we believe this substitute is a much more cost-effective
approach than that contained in H.R. 3920 and would help all Americans,
not just those who lose jobs to trade, get the skills needed to find
productive new jobs.
I urge my colleagues to vote for the substitute.
Mr. Speaker, I reserve the balance of my time.
Mr. McDERMOTT. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to commend my Republican colleagues for proposing
a substitute today. It's healthy for America to see two different views
on how we should help dislocated workers.
Democrats want to help more workers who lose their jobs because of
trade, especially workers providing services. The Republican substitute
says no to helping those workers.
Democrats want to assure more dislocated workers have an opportunity
to receive training. The Republican substitute would, instead, cap the
amount of training any worker can receive, not to go on and finish a
program.
Democrats want to assure health care coverage is affordable for
workers losing their jobs by paying 85 percent of their premium. The
Republican substitute said, well, 65 wasn't enough, but we'll give you
70. So again, they cut the workers short.
Democrats want a better wage insurance program to help trade-affected
workers who are reemployed in jobs that pay less than their prior
employment. The Republican substitute guts the program as it presently
exists and instead only provides a benefit to those at the very lowest
wage jobs.
Republicans don't care if workers have a chance to get a living-wage
job; they want to force people back to minimum-wage jobs. Democrats
want to help States improve unemployment insurance for all workers who
are denied unfairly their benefits, especially women. The Republican
substitute goes in the opposite direction by allowing the
administration to approve waivers from States that could deny more
jobless workers unemployment insurance.
In short, the Democrats want to help workers navigate the global
economy. The Republican substitute, on the other hand, tells workers,
well, you're still, more or less, on your own.
After this substitute is defeated, I'm hopeful that some of my
colleagues on the other side of the aisle will ultimately join us in
passing a bill to assist America's workers when they lose their jobs
through no fault of their own.
Mr. Speaker, I reserve the balance of my time.
Mr. McCRERY. Mr. Speaker, before yielding to Mr. McKeon, I want to
[[Page H12329]]
point out that the underlying bill, as described by my friend from
Washington, does, indeed, double, and then even later triples, the TAA
training budget when nearly $300 million of the current budget lies
unused. That's just an example of how we think the underlying bill that
we oppose goes way too far in expanding this program needlessly.
Mr. Speaker, I yield such time as he may consume to the ranking
member of the Education and Labor Committee. I'm sorry, I've been
calling it the Education and Workforce Committee. My apologies to the
chairman and to the members of that committee. It is now the Education
and Labor Committee, and Mr. McKeon is the ranking member.
Mr. McKEON. I thank the gentleman for yielding.
You know, it has been 9 years since Congress last reauthorized the
Workforce Investment Act, known as WIA. We made dramatic improvements
through the last reauthorization, strengthening the nationwide system
of one-stop training centers where workers can access a variety of
training services.
I remember not too long after we did that, two of the displaced
workers in my district, we've lost many jobs for aerospace workers, two
of them came up to me and thanked me for having done this because they
had been able to go back and get vouchers, receive additional training.
One of them was becoming a teacher and one was going to be a computer
operator. And we've seen many people benefit from that program. But as
yet, it has not been reauthorized this year.
The system has served job seekers well. WIA now integrates employment
and training services at the local level in a more unified workforce
development system, which it did not do prior to the 1998 reforms. Yet,
without renewal today, it cannot possibly keep pace with the rapidly
changing needs of workers in a dynamic economy.
Earlier this month, Republicans unveiled a comprehensive road map for
reforming both job training and higher education. The Higher Education
Act and WIA each play a critical role in keeping Americans competitive
by developing the skills and knowledge necessary in a changing economy.
Unfortunately, Democrats have not offered proposals to strengthen
either of these critical programs.
I am pleased to be joining Representative McCrery today in offering a
proposal that links our job training reforms with the renewal of the
Trade Adjustment Assistance program. These proposals work hand in hand
to provide dislocated workers the type of responsive, flexible training
and assistance they need to get back to work.
Our proposal will strengthen WIA's infrastructure, eliminate
duplication and waste, increase accountability, enhance the role of
employers, and increase the State and local flexibility. Together,
these reforms will ensure the Nation's workforce development system can
respond quickly and effectively to the changing needs of job seekers
and those in need of training.
The time for job training is long overdue. The Department of Labor
has made efforts to allow flexibility and creativity within the
existing system, and numerous stakeholders have proposed innovative new
strategies. However, this type of reform has been hampered because
Congress has failed to act.
One of the most important steps we can take to strengthen our job
training system is to increase program efficiency and focus on results.
We must eliminate duplication and redundancy and create a more seamless
system that can be flexible based on changing needs.
Our amendment will eliminate current barriers to effective programs
and services. We will enhance the services offered to job seekers,
providing greater flexibility and eliminating arbitrary requirements
that prevent some workers from getting the services they need.
We also plan to restore long-standing hiring protections to faith-
based organizations in order to ensure that they are able to
participate fully in the job training system.
To foster regional economic development, the Republican plan would
allow regional areas to integrate workforce development programs, one-
stop services, and community and economic development funds into a
comprehensive workforce development system.
Finally, our plan would strengthen programs targeted towards specific
populations, improving adult education, vocational rehabilitation, and
youth programs.
Mr. Speaker, I support trade adjustment assistance, and I support its
extension and renewal.
I want to recognize Representative McCrery for his leadership on this
important issue. Our amendment will better integrate TAA with other
Federal programs to more effectively equip workers affected by trade,
globalization and other causes of job loss with skills they need to
adapt to the changing global economy. It will join these TAA
improvements to long-overdue job training reforms. We need to update
these programs to be competitive worldwide.
I urge my colleagues to join me in voting ``yes'' on the Republican
substitute, which will provide a comprehensive approach to helping keep
America competitive.
Mr. McDERMOTT. Mr. Speaker, may I inquire as to how much time is
remaining on each side.
The SPEAKER pro tempore. The gentleman from Washington has 28
minutes. The gentleman from Louisiana has 17\1/2\ minutes.
Mr. McDERMOTT. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Sherman).
Mr. SHERMAN. Mr. Speaker, I rise in support of TAA assistance and
therefore oppose this weakening amendment.
But we should recognize that TAA is a Band-Aid on a self-inflicted
wound. Our trade policies are gutting the American economy far beyond
the ability of TAA to ameliorate the pain.
What is obvious is the loss of individual industrial plants. What is
less visible is the increase in our interest rates and a decline in our
national industrial base.
Today, let us adopt the Band-Aid, but let us not use the presence of
those Band-Aids as an excuse for further self-inflicted wounds.
{time} 1345
Today, we should pass TAA. Tomorrow, let us stop the bleeding. Let us
not adopt trade agreements that increase our trade deficit. And let us
begin to renegotiate existing trade agreements so that they are based
on results rather than based on form.
Let us build an economy where demand for labor is so high that
instead of hearing stories of pain from workers, we are hearing from
employers fighting for every available employee. Let us hear of a
dollar that is more valuable than the Euro and let us have a trade
policy that for every dollar of imports, we match it with a dollar of
exports. Until then, there are workers who are in pain, who are
casualties of our ill-conceived trade policies. They need and deserve
our help.
Mr. McDERMOTT. Mr. Speaker, I yield 1\1/2\ minutes to Mr. Hodes of
New Hampshire.
Mr. HODES. I thank the gentleman for yielding.
Mr. Speaker, I rise in support of H.R. 3920 and in opposition to the
Republican substitute. Last Tuesday, 303 workers in Groveton, New
Hampshire, a small paper mill town, heard over the radio and by
newspaper the devastating news that Wausau Paper was closing the mill
at the end of the year. On Friday, I sent a letter to Labor Secretary
Chao asking for expedited help under the existing TAA, and on Monday I
traveled to Groveton and met with a number of the affected workers. It
is difficult to describe how devastating this closure is to the town of
Groveton, to the families of the workers and to the region. Many of the
proud workers of that mill are third and fourth generation. They have
got no other skills. This is the life they know.
As I explained on Monday to the workers what kind of help is
available in the current TAA, the thought that was going through my
mind was that this was not enough. We need to do more. These folks,
their family, this community need more and deserve more help from the
Federal Government. The ripple effects of this closure are huge. It
goes out into the community, to other businesses and vendors. That is
why the H.R. 3920 provisions to redevelop communities hit by the loss
of manufacturing jobs through the designation of manufacturing
redevelopment zones is so important.
[[Page H12330]]
We've got more workers who need help. They face harder times and
higher costs, especially for health care. We need to expand the TAA.
Now is not the time to go backwards. The Republican substitute is no
substitute. It takes us backwards. I urge my colleagues to vote against
the Republican proposal and support H.R. 3920.
Mr. McDERMOTT. Mr. Speaker, I yield 1\1/2\ minutes to Mr. Higgins of
New York.
Mr. HIGGINS. Mr. Speaker, I represent an area of western New York
which includes the Buffalo/Niagara region. Over the past 5 years, that
region has lost 25 percent, or 22,000 manufacturing jobs. One of the
gentlemen from the other side said that one of the reasons for not
updating the program or adjusting it is because there is a $300 million
surplus in the program. I would argue that that is the best reason for
renewing the program, to include workers who are precluded from
benefits today.
I oppose the Republican amendment. The Republican amendment would
eviscerate the Trade Adjustment Assistance program and its very
purpose. Under the Republican amendment, it would preclude service
workers from receiving benefits. Unlike H.R. 3920, the Republican
amendment does not cover service workers. Yet according to one study by
a leading technology consulting firm, 3.3 million service workers will
lose their jobs by 2015.
The Republican amendment would prohibit manufacturing workers whose
jobs are offshored to China or India from receiving benefits. Current
law precludes those workers from eligibility. 3920 fixes this inequity.
Finally, the Republican amendment would cut worker training benefits.
All of the States who have enrolled displaced workers in these
programs, the cost exceeds that which is provided in the Republican
amendment.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
The Republican substitute before the House at this time does not
eviscerate anything, much less the TAA program which is reauthorized in
the substitute for 5 years exactly as it is. The benefits are the same.
The amounts are the same. I don't know where the last speaker got his
information, but the substitute certainly does not eviscerate the TAA
program. It reauthorizes the existing program for 5 years. Then, in
addition, we make some changes in the law that allow those benefits
under the TAA to be used in instances where under current law they
can't be used, and I have described one of those already in my earlier
presentation.
So I hope this House doesn't get the wrong impression about this
substitute. It certainly endorses the TAA program. We are for the TAA
program. We think it is important. But we think our bill gives a lot
more flexibility that is needed in the program and some accountability
in the program that is needed. In addition to that, we do provide
additional funds in our bill, and it is paid for under the PAYGO rules
of the House. I just wanted to make that clear.
I reserve the balance of my time.
Mr. McDERMOTT. Mr. Speaker, I yield 2 minutes to the gentleman from
Wisconsin (Mr. Kind).
Mr. KIND. I thank the gentleman for yielding to me and commend him
for his leadership on this issue.
Mr. Speaker, I reluctantly rise in opposition to the substitute being
offered to us today and in strong support of the Trade and
Globalization Assistance Act that we have been debating this afternoon.
I believe that in order to forge a renewed consensus in support of
trade in this country, we really need to accomplish three things: One
is we need a new template on trade agreements, one that I think will be
reflected with the Peru trade agreement that will come to the floor
next week that calls for core international labor standards and
environmental standards in the bulk of the agreement so we begin to
level the trading field.
Another important ingredient is the strong enforcement of trade
agreements by this administration and future administrations so that
workers and businesses alike know that everyone is playing by the same
rules and if they are not, there will be consequences.
Finally, there has to be assurance to the workers of this country
that when they do feel the adverse affects of globalization and job
displacement or downsizing or outsourcing, there will be adequate
programs there to assist them to get on their feet, from job training
funding to adequate health care coverage during a very difficult and
oftentimes traumatic moment in their lives.
Unfortunately, the substitute falls short in regards to the support
mechanism. It precludes service workers from qualifying for these TAA
benefits. It prohibits manufacturing workers whose jobs are offshored
to China and India from qualifying for these benefits. It also cuts
worker training benefits by capping it at $8,000, even though we know
that the average State today is spending close to $15,000 for job
training benefits.
Finally, they pull up short on the crucial aspect of adequate health
care. They move from 60 to 70 percent support for the premiums of
workers, whereas we go to 85 percent. And even at 85 percent, that
remaining 15 percent can be very, very expensive for the average worker
when they have lost their job and they don't have an income. They also
don't minimize the gaps in coverage as we do. And they also don't allow
the continuation of COBRA coverage for employees as we do in the
substitute.
I would encourage my colleagues to support H.R. 3920 and oppose the
Republican substitute.
Mr. McCRERY. Mr. Speaker, I reserve the balance of my time.
Mr. McDERMOTT. Mr. Speaker, I yield 1\1/2\ minutes to Mrs. McCarthy
of New York.
Mrs. McCARTHY of New York. Thank you for yielding.
As we have heard today, the TAA program helps hardworking Americans
transition to the global economy and adjust to economic changes
resulting from the trade policy of the United States. Training and
education play a major role in whether workers will have future success
on the job. We have seen the dissatisfaction of the American people
with the global economy. You have heard from many of my colleagues on
how many people have lost jobs. Most of them are manufacturing jobs.
A lot of these people that lose their jobs can be trained. I am happy
to say that the Ways and Means Committee worked with me on making sure
career and technical schools and colleges have the opportunity to be
part of the TAA program. It is important for people to understand when
someone is in their late fifties and they lose their job because of the
global economy, that they have skills but they need to upgrade those
skills for the world that we are seeing in the future. Technical and
career colleges offer those particular uses.
I am happy to say that the TAA bill that the Democrats have put
forward are going to help our workers throughout this country, and with
health care so that they can provide. Our workers are putting in more
time than ever before. Our productivity is up. But, again, we have to
keep pace with education. I am very happy to say that we are part of
that educational system.
This is a good bill. I rise against the Republican substitute because
it doesn't fill the bill. We have waited too long to get this done.
Mr. McCRERY. Mr. Speaker, may I inquire as to the time remaining.
The SPEAKER pro tempore. The gentleman from Louisiana has 16 minutes
remaining and the gentleman from Washington has 20 minutes remaining.
Mr. McCRERY. I reserve the balance of my time.
Mr. McDERMOTT. Mr. Speaker, I yield 2 minutes to the gentleman from
North Carolina (Mr. McIntyre).
Mr. McINTYRE. Mr. Speaker, I oppose the Republican amendment which
guts the trade adjustment assistance program's very purpose, which is
to be able to help workers affected by trade and globalization get the
help they need to get back on their feet and obtain new, good-paying
jobs, and I support the underlying bill.
Earlier this year, I joined other members of the North Carolina
delegation and introduced a similar bill, H.R. 1729, the Trade
Adjustment Assistance Reform Act, whose essential language is mirrored
in this bill. The provisions in our original bill were based on the
recommendations made by the North
[[Page H12331]]
Carolina Dislocated Worker Advisory Committee, a group convened by the
North Carolina Rural Economic Development Center that included, among
others, leaders from the community college system, the Employment
Security Commission and the Workforce Development Division of the North
Carolina Department of Commerce.
Mr. Speaker, North Carolina's involvement in the TAA debate is
important. Why? Because our State has had the most workers covered by
TAA certifications, the most workers benefiting from the health
coverage tax credit, and one of the highest number of workers enrolled
in TAA-sponsored worker training. In fact, as of August 10 of this
year, there were 12,693 TAA participants in North Carolina, including
over 9,800 enrolled in training. That is why I am very pleased to
support the underlying bill and oppose this Republican amendment.
This bill also expands TAA eligibility to include dislocated workers
affected by a shift in production in which the workers' jobs are moved
to nations with no preferential trade agreements, such as China. It
also gives our States the flexibility and increased funding to meet the
increasing demand for services and increases the health coverage tax
credit to 85 percent of the dislocated workers' health care premiums.
It makes changes to simplify the application process for dislocated
workers so that they can get help in a timely manner.
In the last 5 years, Mr. Speaker, North Carolina has been hurt by
manufacturing layoffs more than any other State. We have had the most
demand for trade adjustment assistance. Therefore, I urge the Congress
to oppose this substitute amendment. Let's get on to the business at
hand, approve this underlying legislation and have the President sign
it into law.
{time} 1400
Mr. McCRERY. Mr. Speaker, I yield 4 minutes to the distinguished
ranking member of the Trade Subcommittee, the gentleman from California
(Mr. Herger).
Mr. HERGER. Mr. Speaker, I rise in support of an amendment in the
nature of a substitute to H.R. 3920 offered by Mr. McCrery and Mr.
McKeon. In particular, I would like to focus on the provisions in this
amendment that would provide TAA participants with quicker access and
more flexible training options to obtain the skills they need to return
to work as quickly as possible.
H.R. 3920 contains some TAA training reform, but it is largely geared
towards keeping people in TAA longer, and is costly. In contrast, this
amendment provides much greater individual choice and more flexible
access to training through a new approach designed to get people into
training sooner and better equip them to get back to work more quickly.
For example, this amendment would improve TAA participants' access to
training and education by: one, providing New Economy Scholarships of
up to $8,000 that a participant can use over a 4-year period in a range
of training programs; and, secondly, authorizing $50 million for new
capacity building grants for community colleges and other training
providers to offer enhanced training to more TAA participants.
This amendment also would provide TAA participants with more flexible
training options that are not available under current law, including
allowing participants to combine full-time work with either full-time
or part-time training, or combine part-time work with either full-time
or part-time training; and allowing training programs that lead to a
license, certificate or community college degree and are linked to a
high-demand occupation, as well as apprenticeship programs.
Moreover, this amendment would enable TAA participants to begin
training sooner, even prior to layoff. This amendment also allows
workers to focus on a job search sooner, while receiving income
support, without also having to be in training or obtain a training
waiver, which is required today. This amendment also would encourage
better allocation of current training funds for the States, which have
not been fully used, by requiring the Department of Labor to report to
Congress every 6 months on this funding allocation.
Mr. Speaker, I believe this amendment makes meaningful training
reforms to TAA that would provide more flexible options to participants
and better enable them to gain the skills they need to return to work
sooner. I urge my colleagues to support the amendment in the nature of
a substitute.
Mr. McDERMOTT. Mr. Speaker, I yield 2 minutes to the gentleman from
Florida (Mr. Meek).
Mr. MEEK of Florida. Mr. Speaker, it is an honor being here to
address this piece of legislation, TAA legislation especially, better
known as the Trade and Globalization Assistance Act. It is very, very
important to the progress of trade. Also, it is important to many
States out there in the Union. I think it is important. I stand to
oppose the Republican amendment to this great piece of legislation,
because if you adopt their amendment, you're doing less than what we
would like to do in the present legislation that is on the floor today.
Mr. Speaker, when it comes down to training funds, this bill doubles
the current training funding cap from $220 million to $440 million and
increases it to $660 million by 2010. This is music to the ears of so
many States and especially individuals that have lost their jobs
because of trade, because of globalization.
So we are here on the floor, especially with me being a member of the
Subcommittee on Trade, we are here on the floor to promote not only
training, but also assisting those States that are led by Democrat and
Republican Governors. So I share with all of my colleagues here on the
floor: Do what is right. To say that we can cut things in half or keep
things at status quo and still do a good job by allowing individuals
that have lost their jobs the assistance that they need as relates to
training, as it relates to health care, is just not living in the real
world.
I encourage the Members to vote against the Republican amendment,
oppose it, and support the Trade and Globalization Assistance Act that
is brought by the majority. I know that it will be a bipartisan vote in
the final analysis.
Mr. McCRERY. Mr. Speaker, unless the cavalry comes riding over the
hill, I only have one remaining speaker.
Mr. McDERMOTT. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman
from Texas (Mr. Hinojosa).
(Mr. HINOJOSA asked and was given permission to revise and extend his
remarks.)
Mr. HINOJOSA. Mr. Speaker, I rise in opposition to the McCrery
amendment in the nature of a substitute. I support the underlying bill,
H.R. 3920, which is important to our State of Texas and to our Nation.
The Education and Labor Committee, on which I serve, is separately
considering the reauthorization for the Workforce Investment Act. The
Trade and Globalization Assistance Act is not the appropriate bill for
addressing it. Rather than address the root causes of why little actual
job training services are provided under WIA, the McCrery substitute
gives Governors and not consumers, the American workers, greater
control over critical resources.
Mr. Speaker, most alarming is the fact that the minority believes it
can simply change the bureaucratic elements of the WIA system and
ensure those who need training receive it. Actual job training has
fallen 50 percent under WIA, compared to JTPA. Only 200,000 adults and
dislocated workers have received training, out of 8 million unemployed
individuals. The Department of Labor estimates that less than 50
percent under WIA funds are being used for core, intensive and training
services. In real terms, appropriations for WIA have dropped by over $1
billion during this administration's clock in the last 6 years. Just
this past year this administration has proposed a cut of $1 billion,
including a rescission. Fortunately, our Appropriations Committee has
restored this funding.
It should also be noted that WIA expired in 2003, and the minority
had ample opportunity to reauthorize WIA but failed to do so.
Representative McKeon only introduced the WIA reauthorization bill
earlier this month, essentially with the same proposals that failed to
pass the previous two Congresses. Moreover, given the length of time
that has transpired from the 108th Congress when the Workforce
Investment Act was due to be reauthorized,
[[Page H12332]]
until today, it is essential that we give this critical piece of
legislation a fresh look.
Mr. Speaker, we have a changing economy and labor force, which means
that there are new challenges and new opportunities that we should
consider. The Education and Labor Committee has actively begun the WIA
reauthorization process. The Subcommittee on Higher Education, of which
I am the chairman, held two hearings in June and July, and received
recommendations from stakeholders on WIA reauthorization. The
subcommittee also asked all interested parties to submit proposals to
the committee, and the committee staff is reviewing those
recommendations that have been submitted by over two dozen
organizations and continues to meet with interested groups on WIA.
Committee staff has offered to work with the minority staff as WIA
proceeds through the committee.
Regrettably, WIA programs have suffered funding cuts over the past 7
years, largely because the administration requested the cuts and
opposed congressional efforts to approve WIA funding.
Mr. Speaker, I urge my colleagues to reject the substitute amendment
and to vote for passage of the underlying bill.
Regrettably, WIA programs have suffered funding cuts over the past 7
years largely because the administration has requested the cuts and
opposed congressional efforts to improve WIA funding. It is my hope
that we can generate bipartisan support to reverse that trend.
I urge my colleagues to reject the substitute amendment and to vote
for passage of the underlying bill.
Mr. McDERMOTT. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Virginia (Mr. Moran).
Mr. MORAN of Virginia. Mr. Speaker, I rise in opposition to the
McCrery substitute and in support of the Rangel-Levin-McDermott
underlying bill.
As we continue to expand and open our markets to new competition, we
have an economic and a moral responsibility to ensure that our domestic
workers are equipped with the necessary skills and tools to compete in
a global market.
I support free trade, which is all the more reason to support the
reforms and expansion of a program that will help our workers adversely
affected by trade and the globalization of our economy. It is estimated
that more than 3 million service workers' jobs will go overseas by
2015, so the expansion of coverage to the service workers section is
especially important and appropriate.
But the McCrery substitute will limit trade assistance adjustment by
not offering any support to service or public sector workers. The
substitute will also set a cap on available training funds, denying
many workers the tools and resources to be more competitive in the
global economy. And as I read the language of the substitute, for the
first time of the 70-year history of the unemployment insurance system,
the substitute would allow States to deny unemployment insurance
benefits to dislocated workers. The underlying bill provides American
workers with the support and tools needed to expand job training
opportunities and transition workers into 21st century jobs.
This bill, H.R. 2930, triples the current job training cap to $660
million by 2010 and increases the health care premium subsidy to 85
percent. This is an important investment in the American workforce to
enable Americans to remain competitive in the global economy.
So I ask my colleagues to vote against the Republican substitute and
vote for H.R. 2930, the McDermott-Rangel-Levin bill.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would point out that service workers today are
entitled to unemployment insurance benefits, and that is the primary
form of income support under TAA. But to expand to service workers all
of the other array of benefits under the TAA may be premature.
In a bill that passed this Congress and was signed by the President
earlier this year, there was a mandate for a study to look at service
workers and the impact of trade on service workers. We don't yet have,
obviously, the results of that study, so it may be premature to just
willy-nilly offer all these benefits to service workers.
And while Mr. Moran spoke about some projection of losses of service
worker jobs over the next 10 or so years, in an April 2007 paper, the
Peterson Institute for International Economics evaluated data on the
extent of the impact of off-shoring on service sector labor markets in
the United States, and their review of the data concluded that just
under 1 million American service workers lost their jobs from 2004 to
2005 due to mass layoffs of 50 or more employees, while 8 million
service sector jobs were created during that time. And of those 1
million jobs lost, only about 4 percent could be attributed to off-
shoring or offshore outsourcing.
So I think the question of the impact of trade on the service sector
is certainly an open one, and the House may be well advised to wait for
the results of the study that we mandated in previous legislation that
passed this year.
Mr. Speaker, I reserve the balance of my time.
Mr. McDERMOTT. Mr. Speaker, I yield 3 minutes to the gentleman from
California (Mr. George Miller).
Mr. GEORGE MILLER of California. Mr. Speaker, I thank the gentleman
for yielding, and I rise in opposition to this substitute and in strong
support of the underlying legislation.
I really want to say that I think that this is the bare minimum that
a society and a government can do for those members of our society that
find themselves in a situation, really through no fault of their own,
that they suffer job loss because of a decision that is made to close a
facility or to transfer their job overseas.
What we have now seen over the last decade is that there has been a
huge impact in families all across this country, in all different parts
of the region of this country, that have been economically severely
displaced, that have had to scramble to try and get job training, to
get health care, to get a new job, to get a new profession, to get a
new occupation. At first, people thought it was only limited to those
who did hot, heavy, dirty, nasty jobs. But that is not the case. What
we see is, with the continued trend toward globalization and
outsourcing, that it can impact all different classes of Americans.
But at a minimum, what we ought to do is make sure that those people
have some ability to make a transition to that new job, to that new
profession, to retirement if they are older workers, and not risk
losing everything that they built up during the time that they were
holding their jobs. They should not be in a position where they are
scrambling to try to find health care, job training, saving their home,
maybe their kids' education, and maybe even the car they need to go to
work. Too often, that is what happens in this country because of the
inadequacies of these underlying laws. Trade assistance over the last
decade, WIA over the last decade, have not provided comprehensive
services for these workers that they can fully engage in.
{time} 1415
We need these kinds of changes that are presented by the committee
bill coming out of Ways and Means. I believe we need the notification
provisions that came out of the Education and Labor Committee, and
clearly we need an extension of the COBRA benefits for people who find
themselves in great jeopardy of not only temporarily losing health
care, but very likely permanently losing health care until they are
eligible for Medicare because they may have health conditions that are
preexisting and it is either so expensive to get an individual policy
or people won't write that policy for them, for whatever excuses they
have to cover up the idea of a preexisting condition.
So this is a basic fundamental compact between this government that
has made a decision, I think properly so, to engage the rest of the
world through trade agreements and globalization, but we have to look
at what happens here at home. These trade agreements are now being
strengthened through the good work of Mr. Rangel and the committee and
Mr. Levin and others, to provide for ILO labor standards overseas so we
can compete on a fairer basis with workers overseas, with environmental
standards so we don't let them subsidize products by just dumping
toxins into the rivers and bays and oceans.
[[Page H12333]]
This is an important piece of legislation, and I urge my colleagues
to support it.
Mr. McDERMOTT. Mr. Speaker, I yield myself 3 minutes.
Mr. Speaker, my distinguished colleague from Louisiana keeps worrying
about the fact that we are mischaracterizing his amendment. I want to
take a specific because the whole question of putting a cap on training
benefits is a cut in benefits from what we presently have. The
unworkable thing that was in the law before, when you cap at $4,000 the
amount per year that a worker can get, a total of $8,000 over a 2-year
period, in Minnesota and Maine, 50 percent of the workers spend
$10,000. Thirty percent of the TAA workers in Pennsylvania spend more
than $15,000 over 10 years. Twenty-five percent of the people in South
Carolina spend over $15,000. Eighty percent of the workers in Nebraska
spend more than $10,000.
Now, when you put that cap on there, you are saying to a 45- or 50-
year-old worker who used to make 35, 40, 45, 50, $55,000, we are not
going to give you sufficient money to really retrain for a job that you
had equivalent in pay before. You are saying whatever you can get for
four grand, fine, that's it. But if it takes more than that, well,
you're on your own.
This bill is designed to try and help workers who were the middle
class in this country, people who were making livable wages. Now, you
also say in your bill that your wage insurance, it used to be in the
present bill if you were over 50 and your job was making less than
$50,000 a year, you could receive up to an additional $5,000 if you
took a job that paid less than you were making before.
Now, what you've done in this bill, in this amendment you offer, you
say we will give you a minimum wage job, and if you don't make an
additional $2.40 above that minimum wage in your State, then we will
sort of give you a little cushion up to that $2.40. That is pushing
people to low-wage jobs. You are taking those $50,000-a-year people who
were working in auto factories and working in manufacturing jobs across
this country and you are saying, go out and get yourself a minimum wage
job and we'll give you an extra $2.40 an hour. My, aren't we generous.
And you understand why we talk about you gutting what miserable
program you put in place in the first place.
This bill that we have put together here today is one that will allow
States, and the reason why we put additional money in for training is
no one could use it before. They will under our bill.
Mr. McCRERY. Mr. Speaker, in response to the remarks of my friend
from Washington, I would point out that using Bureau of Labor
statistics, the average cost of training under current law is only
$3,000. So the $8,000 New Economy Scholarship in our substitute more
than doubles the amount available.
In the case of remedial education, the scholarship amounts to an
extra $1,000, nearly tripling the average cost of training.
The most common provider of occupational training is the local
community or technical college. The limit of $8,000 over 2 years is
significantly greater than the average cost of a 2-year program at a
community college, and is similar to limits that apply to other Federal
postsecondary assistance.
Under current law, Mr. Speaker, while there is no specific monetary
limit, as there is in our substitute, the cost of training must be
reasonable and that reasonableness is decided by the various States. So
the amount that is available is subject to judgment and to uncertainty.
Our substitute removes that uncertainty so that a person knows going in
how much he is going to have to spend on training.
Our substitute significantly enhances access to training by removing
additional eligibility criteria and allowing people who do get new jobs
to use the training benefit unlike current law. So we expand current
law in that regard with respect to training benefits.
Mr. Speaker, I hope the gentleman from Washington has listened to my
rebuttal and is convinced now that we don't gut the training benefits
in TAA. If he is not, though, if he will vote for the substitute, I
look forward to working with him to smooth out the complaints that he
has.
I reserve the balance of my time.
Mr. McDERMOTT. I wish you and I could have a debate.
Mr. Speaker, I yield 2 minutes to Mr. Sestak, the gentleman from
Pennsylvania.
Mr. SESTAK. Mr. Speaker, I watched the world change during nearly
four decades in the Navy, having joined up in 1970. I have been almost
everywhere. Several decades ago I went to China and to the United Arab
Emirates when they were not the powers they are today.
The strength of our international trade is absolutely crucial to the
economic prosperity and global competitiveness of our Nation. But there
are consequences of globalization, and we must address them if we are
to remain and have a fully skilled workforce that can continue to
compete.
This is why trade adjustment assistance is so important. It ensures
the transition of the workforce that is negatively impacted by trade to
step back and to receive the tools that prepare them to reenter the
workforce at a higher, more skilled, competitive level. Good for them.
Good for America.
The substitute amendment removes this focus on ensuring a more
wealthy economy because of a retrained workforce. It actually caps
retraining funding at $8,000, less than all but one State. This, when
economists state that if our competitive ability, based on an
innovative, skilled workforce, does not change, China will be the
number one economy by 2050 and India number two. We will be number
three.
As service workers have grown to be a more significant part of the
economy than they were when the initial Trade Assistance Act was passed
in 1962, it is vitally important that we invest in their retraining
also.
The substitute amendment would actually remove these workers, needed
to be re-skilled for our economic future, from the bill. And at a time
when health care premiums have risen as a not-so-hidden tax, 70 percent
in the last 6 years, the substitute amendment does nothing to fix the
flaws in the old Trade Assistance Act that precludes families from
receiving the health care tax credit for which they are eligible.
In short, having visited the UAE and China decades ago, and seeing
them now, there is no question that a small investment in a healthy,
educated and retrained workforce is needed to preclude our economy from
being number three.
We want the same quality of life our forefathers had when they
invested in the GI bill, and this is no different. This is a small
investment so we give the quality of life we had to our children.
Mr. McDERMOTT. Mr. Speaker, I yield 3 minutes to the gentleman from
Michigan (Mr. Levin).
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. The choice is clear. We have heard your rebuttal. Your
bill does really nothing about the problem for people in manufacturing.
If there is an outsourcing to China, the workers are out in the cold.
That is cold, not like you. But it is cold.
Service employees, why distinguish? It is an increasing part of our
economy. You do nothing.
In health care you put a little patch on a big problem, and that is
not good health care.
Essentially what you are trying to do with your substitute is to
minimize the problem rather than maximizing an effective response. The
3 percent figure as to the impact of trade is really out of thin air.
It is surely not true of manufacturing. Not at all true. Some who
served in Republican administrations say it has been much more than
that.
In the capping of training, we heard the response from the
representative of the administration. That $3,000 figure at best is an
average, and even that is indefensible. Mr. McDermott read to you the
number of States where training is much higher, so you essentially cut
the worker off halfway. That's what you are going to do in terms of
training.
Seven States ran out of resources in 2007, nine in 2006; you do
nothing. We need a new trade policy. We need a new, vigorous TAA. We
need more than a pat on the back.
Our bill does what needs to be done. I am afraid the substitute at
best is a
[[Page H12334]]
pat on the back. Let's vote it down. Let's have a bipartisan vote for
this TAA. Bipartisan, as we did in the Ways and Means Committee.
Bipartisan.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. Lynch). The Chair reminds Members that
all remarks in debate are to be addressed to the Chair.
Mr. McCRERY. Mr. Speaker, may I inquire how much time remains on each
side.
The SPEAKER pro tempore. The gentleman from Louisiana has 9 minutes
remaining and the gentleman from Washington has 2 minutes remaining.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume
just one more time to try to rebut the characterization of the other
side of our substitute with respect to training.
The information that we have, and we think it is reliable, is that no
State ran out of training money, but obviously the majority has
different information and at some point during the process we would
love to sit down with them and examine their data and our information
to see if there is some way to reconcile those and arrive at a
conclusion that we both can embrace. We have not had that opportunity
other than the limited debate we had in committee and now here on the
floor, and we are hearing the same thing on the floor we heard in
committee and so we haven't reconciled those differences. But clearly
there are differences in the data that each of us thinks is reliable.
Mr. McDERMOTT. Would the gentleman yield?
Mr. McCRERY. I would be happy to yield.
Mr. McDERMOTT. You will concede that the Department of Labor says
that no State ran out of money, but that GAO said that nine States ran
out of money, that there is an argument about how the States keep their
books, will you not?
Mr. McCRERY. Yes. As I said, I think each side has information that
it deems reliable, but we have attempted to try to reconcile those two
different sets of data. I am hopeful we will do that before this
process is over.
Mr. McDERMOTT. I hope you understand we put in more money because we
hoped to cover more people.
Mr. McCRERY. Absolutely.
Mr. McDERMOTT. If we change some of the regulations, it will be more
accessible to people.
Mr. McCRERY. Absolutely. I do understand that. We, of course, as you
know, question the need right now to include all those additional
people, as I have talked about before, with respect to services
workers.
{time} 1430
But our substitute with respect to the universe of people presently
covered under law by the Trade Adjustment Assistance, we think the
training money in our substitute is more than adequate to cover the
needs of that population with respect to training.
Mr. Speaker, I have one remaining speaker. The gentleman from
Washington only has 2 minutes remaining, but are you ready to close?
Mr. Speaker, with your permission, I'll close for our side.
Mr. McDERMOTT. Mr. Speaker, do you have the right to close? I think
you have the right to close.
The SPEAKER pro tempore. Under the rules of the House, the gentleman
opposing the amendment has the right to close, the gentleman from
Washington.
Mr. McDERMOTT. We have the right to close?
The SPEAKER pro tempore. You have the right to close, that's correct.
Mr. McCRERY. Oh, well, thank you for the kind offer. I'm happy to
close at this time, Mr. Speaker.
I think we've had a good debate today on the different approaches
that the majority and minority have at this point on the Trade
Adjustment Assistance Act. We certainly understand the importance of
providing an array of benefits to people in this country who lose their
jobs because of trade, and certainly Chairman Rangel and I have talked
and agreed that it's necessary for Congress to take action and to make
sure that people in this country know that as we expand trade, that the
benefits of trade expansion will be uneven. And there will be some in
this country who will lose their jobs because of that expansion of
trade, and we need to be prepared to assure those people that we will
help them give them that helping hand to lift them up after they've
lost that job and find training, education, whatever is necessary to
get them a new job if they desire, and in the meantime give them
benefits that will allow them to take care of themselves and their
families.
So we agree on the importance of this program. I had hoped we would
have had more give-and-take over the last couple of months with respect
to crafting a bipartisan approach to reauthorizing the program, not
only because the program was originally a bipartisan program, but also
because we are trying, some of us on both sides of the aisle are trying
to rebuild that bipartisan coalition for the expansion of trade around
the world, knocking down trade barriers to our goods and services, to
make the playing field more level for United States producers of
products and services. And as we attempt to create or recreate that
bipartisan coalition for the expansion of trade, we understand that one
leg of that effort has got to be reauthorizing and strengthening not
only TAA, but perhaps even going beyond the current universe of
beneficiaries of a Trade Adjustment Assistance program and looking at
enhancing the benefits of all workers who lose their jobs, not just
because of trade but perhaps due to things that are more in the rubric
of globalization but not specifically trade.
So I'm glad that we have this bill before the House today. I'm
hopeful that we can reauthorize in some form this very important
program before the end of this year. I regret that I cannot support the
majority bill that's on the floor today. I think we have offered a
reasonable substitute and I'm hopeful that the House will adopt our
substitute, and then as the process moves through the Senate and to the
President, we can perhaps refine that product some more and get a
bipartisan agreement.
So with that, Mr. Speaker, I urge adoption of the substitute.
Mr. Speaker, I yield back the balance of my time.
Mr. McDERMOTT. Mr. Speaker, I yield the remaining time that we have
to the Speaker of the House, Nancy Pelosi.
Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding and for
his important work on keeping America number one.
In recent years, the increasing global market has brought many
opportunities but has also created unprecedented challenges as to how
we address the increased economic insecurity faced by many of America's
working families. For a long time, unfortunately, Mr. Speaker, trade
policy has focused more on opening new markets and has dismissed the
real consequences of those faced by those who lose their jobs as well
as their communities across America that are hard hit.
Democrats recognize that our economic future rests with our ability
to open new markets for U.S. goods, especially since our markets are
already largely open to our trading partners. However, the status quo
is not working, and we must do much more to help American workers
compete and thrive in the increasingly competitive global market. That
is the purpose of this important legislation before us, the trade
adjustment assistance bill.
Mr. Speaker, being from Massachusetts, I'm sure you've read in the
history books, for somebody of my age I recall, when President Kennedy
called for the, called upon the American people with his challenge to
put a man on the Moon and have him safely return within 10 years. It
was very, very exciting. It was almost unbelievable, but it did happen.
Why I mention it, though, is because in his remarks at that time,
President Kennedy said, if we are to honor the vows of our Founders, we
must be first, and therefore we intend to be first. For our science and
industry, for peace and security, we must be first. And that's what
this is about today, how America can continue to be number one.
We have worked together with that Innovation Agenda in that spirit;
the Innovation Agenda, much of which has been passed overwhelmingly in
a bipartisan way by the Congress and signed into law by President Bush.
And it will help promote, will make serious and sustained investments
in research and development, help promote the public-private
partnerships that will develop
[[Page H12335]]
high-risk, high-reward ideas into marketable technologies and more jobs
for American workers. In other words, we're saying, if we are going to
compete successfully, we must innovate, and that innovation begins in
the classroom.
So Democrats recognize in the global knowledge-based economy,
America's greatest resource for innovation and economic growth resides
within America's classrooms, and we have made a new commitment to
encouraging students and encouraging highly qualified teachers in the
field of math, science and engineering.
We've also made higher education more affordable and accessible.
Again, in the strong bipartisan way voted by the House, we passed the
College Cost Reduction and Access Act. That was signed into law by the
President and has made the largest investment in college affordability
since the GI Bill was passed in 1944, a bill that was referenced by our
colleague, Mr. Sestak, earlier.
We've also forged a new approach for free trade agreements where, for
the first time, Democrats in Congress and Republicans, working with Mr.
McCrery and Mr. Rangel, the chairman, working with the administration,
were able to forge a new approach. For the first time, enforceable
basic labor rights and environmental standards will be included in free
trade agreements negotiated by the Bush administration ensuring that
our trading partners do not lure American jobs abroad through the use
of weak labor laws and lax environmental standards.
Today's bill is the next step in our agenda to expand economic
security. It's a departure from the status quo. The current trade
adjustment assistance initiative does not do enough to help those who
lose their jobs through no fault of their own.
Specifically, as has been mentioned before, the bill will
dramatically expand the number of workers who will qualify for TAA
benefits. This is very important. It will offer increased funding and
options for workers' training so that individuals can pursue
substantive training programs that lead to higher paying jobs. It will
expand access to health care by strengthening and streamlining the
health care tax credit and other health benefits so that workers are
not forced to live without health care as they search for a new job.
And it will revitalize communities decimated by manufacturing job loss
with tax incentives. Those are some of the provisions of this important
legislation.
This would represent a huge step forward. This would say to the
American people and the American workers who have lost their jobs or
are concerned about losing their jobs to trade that they are not alone.
The bill represents a renewed commitment to helping American workers
who have lost their job through no fault of their own. Free and fair
trade can only thrive if we help those who are facing the downside of a
global economy.
In the coming months, Democrats will continue to lay out a positive
agenda to ensure economic growth and economic security for America's
families. We will continue to pursue a positive agenda to keep America
number one. I urge our colleagues to oppose the substitute and to
support the underlying legislation.
The SPEAKER pro tempore. Pursuant to House Resolution 781, the
previous question is ordered on the bill, as amended, and on the
further amendment by the gentleman from Louisiana (Mr. McCrery), as
modified.
The question is on the amendment by the gentleman from Louisiana (Mr.
McCrery), as modified.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. McCRERY. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Evidently a quorum is not present.
The Sergeant at Arms will notify absent Members.
The vote was taken by electronic device, and there were--yeas 196,
nays 226, not voting 10, as follows:
[Roll No. 1024]
YEAS--196
Aderholt
Akin
Bachmann
Bachus
Baker
Barrett (SC)
Barrow
Bartlett (MD)
Barton (TX)
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono
Boozman
Boren
Boustany
Boyd (FL)
Brady (TX)
Broun (GA)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Carter
Castle
Chabot
Coble
Cole (OK)
Conaway
Costa
Cramer
Crenshaw
Cuellar
Culberson
Davis (KY)
Davis, David
Davis, Lincoln
Davis, Tom
Deal (GA)
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Ehlers
Emerson
English (PA)
Everett
Fallin
Feeney
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gilchrest
Gingrey
Gohmert
Goode
Goodlatte
Granger
Graves
Hall (TX)
Hastert
Hastings (WA)
Heller
Hensarling
Herger
Hill
Hobson
Hoekstra
Hulshof
Hunter
Inglis (SC)
Issa
Johnson (IL)
Johnson, Sam
Jones (NC)
Jordan
Keller
King (IA)
King (NY)
Kingston
Kirk
Kline (MN)
Knollenberg
Kuhl (NY)
LaHood
Lamborn
Lampson
Latham
Lewis (CA)
Lewis (KY)
Linder
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
Matheson
McCarthy (CA)
McCaul (TX)
McCotter
McCrery
McHenry
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller, Gary
Murphy, Tim
Musgrave
Myrick
Neugebauer
Nunes
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roskam
Royce
Ryan (WI)
Sali
Saxton
Schmidt
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Shuler
Shuster
Simpson
Smith (NE)
Smith (TX)
Souder
Stearns
Sullivan
Terry
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walberg
Walden (OR)
Walsh (NY)
Wamp
Weldon (FL)
Westmoreland
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (AK)
Young (FL)
NAYS--226
Abercrombie
Ackerman
Allen
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Bean
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Boucher
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Castor
Chandler
Clarke
Clay
Clyburn
Cohen
Conyers
Cooper
Costello
Courtney
Crowley
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Donnelly
Doyle
Edwards
Ellison
Ellsworth
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Ferguson
Filner
Flake
Frank (MA)
Giffords
Gillibrand
Gonzalez
Gordon
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hare
Harman
Hastings (FL)
Hayes
Herseth Sandlin
Higgins
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson, E. B.
Jones (OH)
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick
Kind
Klein (FL)
Kucinich
Langevin
Lantos
Larsen (WA)
Larson (CT)
LaTourette
Lee
Levin
Lewis (GA)
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lynch
Mahoney (FL)
Maloney (NY)
Markey
Marshall
Matsui
McCarthy (NY)
McCollum (MN)
McDermott
McGovern
McHugh
McIntyre
McNerney
McNulty
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (MI)
Miller (NC)
Miller, George
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Moran (KS)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Richardson
Rodriguez
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Sires
Skelton
Slaughter
Smith (NJ)
Smith (WA)
Snyder
Solis
Space
Spratt
Stark
Stupak
Sutton
Tancredo
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Tierney
Towns
Tsongas
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walz (MN)
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Wexler
Woolsey
Wu
Wynn
Yarmuth
[[Page H12336]]
NOT VOTING--10
Alexander
Carson
Cleaver
Cubin
Jindal
Paul
Schiff
Wasserman Schultz
Weller
Wilson (OH)
{time} 1505
Mr. SCOTT of Georgia, Ms. LORETTA SANCHEZ of California, Ms. WATSON,
Ms. KAPTUR and Messrs. STARK, STUPAK, MORAN of Kansas and RUSH changed
their vote from ``yea'' to ``nay.''
Mr. TERRY and Mr. SAXTON changed their vote from ``nay'' to ``yea.''
So the amendment, as modified, was rejected.
The result of the vote was announced as above recorded.
(By unanimous consent, Mr. Pomeroy was allowed to speak out of
order.)
In Memory of the Late Peter Hoagland
Mr. POMEROY. Mr. Speaker, I have sad news for the House today. Our
former colleague and dear friend, Peter Hoagland of Nebraska passed
away yesterday in the hospital in Bethesda.
Peter served three terms in the House. Being an at-large Member from
North Dakota, as I arrived, I looked to this distinguished gentleman
from Omaha to be not just a friend but also a mentor.
During my years in this body, I have never served with anyone who
enjoyed service in this Chamber more than Peter Hoagland. And yet, he
would lay his tenure right on the line to stand for what he believed in
and cast his votes in a way that were an example in high principle.
Peter will be deeply missed by his family; his wife, Barbara
Hoagland; five children, Elizabeth, Katherine, Christopher, David and
Nick; as well as the countless friends he leaves behind. Our thoughts
and prayers are with them at this difficult time.
And I have, for any Member requesting, the information in terms of
how to contact the family during this hour of bereavement.
I want to yield a moment to Congressman Lee Terry, who now represents
the seat previously held by Congressman Hoagland. And at the conclusion
of Congressman Terry, if we might rise in a moment of silence.
Mr. TERRY. Mr. Speaker, on behalf of all of my colleagues here and
the constituents of the Second Congressional District, our prayers go
out to Barbara, his wife, and their five children.
Peter passed away yesterday. He was a mere 66 years old. Many of you
know that served with him that he developed Parkinson's the last few
years, and it slowly had worsened. But as is typical with Pete, instead
of feeling sorry, he went out and became an advocate for those with
Parkinson's disease, frequently coming to our office to talk about his
advocacy and also about local politics back home.
Pete first ran for the State legislature in Nebraska in 1978, where
he became known as this idealistic, principled, yet liberal Member from
midtown Omaha, which was surprising because he grew up in a family of
pretty hard-core, conservative Republicans.
But I got to know Pete. In fact, Pete even offered me a clerkship in
his law office in 1986, and we became fast and good friends.
He then ran for Congress in 1988 where, with the utmost dedication,
he represented the people of the Second District of Nebraska, carrying
on that principled, idealistic nature that he brought to the Nebraska
State legislature.
So on behalf of people of the State of Nebraska and the Second
Congressional District, I'll say that we will miss our friend, Pete
Hoagland.
At this time, I'd like to yield to my friend from New York.
Mr. ENGEL. I thank my friend from Nebraska, and I too want to rise to
pay tribute to my classmate in 1988, Peter Hoagland. Peter and I were
best friends, socialized with our wives and our kids many, many times.
He was truly a gentleman. Both our colleagues from North Dakota and
from Nebraska really epitomized what Peter meant to all of us. His
wife, Barbara, and the five children, a wonderful family.
And let me just say that Peter was in public life for all the right
reasons. He cared so much about this country. He cared so much about
public policy. He cared so much about people.
In all the time I was with Peter, I was with him a lot, I never once
heard him utter a negative word about anybody. He really truly
respected this institution. He loved our country, and he respected each
and every Member in this House, on both sides of the aisle.
It came as quite a shock to me when I found out about his passing,
although I had known that he had been ill for a while. Sixty-six is
awfully young, too young, when you have such a good person with such a
great, keen intellect and a wonderful person.
So I just want to say on behalf of myself, my wife Pat, my family,
and our class of 1988, we were 18 Democrats and 15 Republicans that
year, we're all going to miss Peter very, very much, and may he rest in
peace.
Mr. HOYER. Will my friend yield?
Mr. TERRY. I yield to the gentleman from Maryland.
Mr. HOYER. I thank the gentleman for yielding. I know that Mr. Terry
has spoken for all of us, and Mr. Engel, Mr. Pomeroy.
For those of us who had the opportunity to serve for an extended
period of time with Peter Hoagland, for those of us who knew Peter
after he left the Congress of the United States, this is a sad day. It
is an appropriate day, however, to remember, as Mr. Engel said, a
gentleman who had nothing bad to say about any of our Members on either
side of the aisle; a Member who was positive in his approach; a Member
who was gracious to all; a Member who cared deeply about his country,
about his State, and about his service in this institution.
Peter Hoagland was a good and decent man who served his country well,
and will be sorely missed by us all.
Mr. POMEROY. At this time, then, Mr. Speaker I'd ask that we might
have a moment of silence.
The SPEAKER pro tempore (Mr. Lynch). A moment of silence has been
requested. Will all Members rise.
(By unanimous consent, Mr. Shays was allowed to speak out of order.)
In Memory of the Late Thomas Meskill
Mr. SHAYS. Mr. Speaker, I rise to eventually ask for a moment of
silence for a Member of this Chamber who has passed away; that's Thomas
Meskill. He was in the U.S. Air Force and in Korea for 3 years. He was
the former mayor of New Britain, Connecticut. He was a Member of
Congress for two terms in the Sixth District. He was Governor of the
State of Connecticut, and he was judge of the U.S. Court of Appeals,
Second Circuit. He was, for a period of time, the chief judge. He was
clearly a distinguished member of Connecticut, a very respected elected
official, but was most respected for his service as a judge in the
Court of Appeals for 30 years.
Before asking for a moment of silence, I would like to yield to Mr.
Larson, who wanted to make sure that this House recognized this
distinguished gentleman.
Mr. LARSON of Connecticut. Mr. Speaker, I thank Representative Shays
for yielding.
This is a very difficult time for the Meskill family, whose husband,
father, grandfather served as Governor of the State of Connecticut, was
a judge in the Second Circuit, chief judge from 1991 through 1992. He
served in this body with distinction. He was the former mayor of New
Britain, Connecticut.
{time} 1515
I had the opportunity to work with Governor Meskill, Congressman
Meskill, and our hearts and thoughts and prayers go out to Mary, his
lovely wife; and his entire family.
With that, I would like to yield to the current Congressman from that
district, Chris Murphy.
Mr. MURPHY of Connecticut. I thank the gentleman for yielding and I
thank Mr. Shays for bringing this before the House.
As the Member of Congress who now has the honor of serving New
Britain, Connecticut, I can tell you, as someone who didn't know
Governor Meskill and Congressman Meskill personally, that he loved the
City of New Britain and the City of New Britain loved him back. He
earned the nickname of ``Tough Tommy'' during his time in the
Governor's mansion when he turned a very large deficit into a very
large surplus in a short amount of time. As you have heard, there was
hardly an office in Connecticut in any of the branches that Governor
Meskill did not hold.
[[Page H12337]]
New Britain is better off for having him. It bears his stamp. We all
stand today to mourn his loss and send our condolences to the family.
Mr. SHAYS. Mr. Speaker, as we rise in silence, if we could remember
his wife, Mary; his two daughters, Maureen and Eileen; his three sons,
John, Peter, and Thomas; and his seven grandchildren.
The SPEAKER pro tempore (Mr. Lynch). Members will rise and the House
will observe a moment of silence.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. McDERMOTT. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 264,
nays 157, not voting 11, as follows:
[Roll No. 1025]
YEAS--264
Abercrombie
Ackerman
Aderholt
Allen
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Barrow
Bean
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boren
Boswell
Boucher
Boyd (FL)
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Camp (MI)
Capito
Capps
Capuano
Cardoza
Carnahan
Carney
Castor
Chandler
Clarke
Clay
Cleaver
Clyburn
Cohen
Conyers
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Lincoln
DeFazio
DeGette
Delahunt
DeLauro
Dent
Dicks
Dingell
Doggett
Donnelly
Doyle
Edwards
Ehlers
Ellison
Ellsworth
Emanuel
Engel
English (PA)
Eshoo
Etheridge
Farr
Fattah
Ferguson
Filner
Fossella
Frank (MA)
Gerlach
Giffords
Gillibrand
Gonzalez
Goode
Gordon
Graves
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hare
Harman
Hastings (FL)
Hayes
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hodes
Hoekstra
Holden
Holt
Honda
Hooley
Hoyer
Hunter
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson (IL)
Johnson, E. B.
Jones (OH)
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick
Kind
King (NY)
Klein (FL)
Knollenberg
Kucinich
Kuhl (NY)
LaHood
Langevin
Lantos
Larsen (WA)
Larson (CT)
LaTourette
Lee
Levin
Lewis (GA)
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lynch
Mahoney (FL)
Maloney (NY)
Manzullo
Markey
Marshall
Matheson
Matsui
McCarthy (NY)
McCollum (MN)
McCotter
McDermott
McGovern
McHenry
McHugh
McIntyre
McNerney
McNulty
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (MI)
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murphy, Tim
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Petri
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Reynolds
Richardson
Rodriguez
Rogers (MI)
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Saxton
Schakowsky
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shays
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (NJ)
Smith (WA)
Snyder
Solis
Souder
Space
Spratt
Stark
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Tierney
Towns
Tsongas
Turner
Udall (CO)
Udall (NM)
Upton
Van Hollen
Velazquez
Visclosky
Walberg
Walsh (NY)
Walz (MN)
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Wexler
Woolsey
Wu
Wynn
Yarmuth
NAYS--157
Akin
Bachmann
Bachus
Baker
Barrett (SC)
Bartlett (MD)
Barton (TX)
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono
Boozman
Boustany
Brady (TX)
Broun (GA)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Campbell (CA)
Cannon
Cantor
Carter
Castle
Chabot
Coble
Cole (OK)
Conaway
Crenshaw
Culberson
Davis (KY)
Davis, David
Davis, Tom
Deal (GA)
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Emerson
Everett
Fallin
Feeney
Flake
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gilchrest
Gingrey
Gohmert
Goodlatte
Granger
Hall (TX)
Hastert
Hastings (WA)
Heller
Herger
Hobson
Hulshof
Inglis (SC)
Issa
Johnson, Sam
Jones (NC)
Jordan
Keller
King (IA)
Kingston
Kirk
Kline (MN)
Lamborn
Lampson
Latham
Lewis (CA)
Lewis (KY)
Linder
Lucas
Lungren, Daniel E.
Mack
Marchant
McCarthy (CA)
McCaul (TX)
McCrery
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller, Gary
Mitchell
Moran (KS)
Musgrave
Myrick
Neugebauer
Nunes
Pearce
Pence
Peterson (PA)
Pickering
Pitts
Platts
Poe
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Rogers (AL)
Rogers (KY)
Rohrabacher
Ros-Lehtinen
Roskam
Royce
Sali
Schmidt
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (TX)
Stearns
Sullivan
Tancredo
Terry
Thornberry
Tiahrt
Tiberi
Walden (OR)
Wamp
Weldon (FL)
Westmoreland
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (AK)
Young (FL)
NOT VOTING--11
Alexander
Carson
Cubin
Hensarling
Jindal
Paul
Ryan (WI)
Schiff
Wasserman Schultz
Weller
Wilson (OH)
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). Members are advised there
are 2 minutes remaining on this vote.
{time} 1534
Mr. ROGERS of Alabama changed his vote from ``yea'' to ``nay.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________