[Congressional Record (Bound Edition), Volume 153 (2007), Part 21]
[House]
[Pages 28845-28933]
[From the U.S. 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.

[[Page 28846]]

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.
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

[[Page 28847]]

       (D) by adding at the end the following:
       ``(5) Firms identified by itc.--A petition filed under 
     section 221 covering a group of workers from a firm or 
     appropriate subdivision of a firm meets the requirements of 
     subsection (a) if the firm is identified by the International 
     Trade Commission under subsection (c), (d), or (e) of section 
     224.''.
       (5) Basis for secretary's determinations.--Such section is 
     further amended by adding at the end the following:
       ``(e) Basis for Secretary's Determinations.--
       ``(1) Increased imports of services.--For purposes of 
     subsection (a)(2)(A)(ii), the Secretary may determine that 
     increased imports of like or directly competitive services 
     exist if the customers of the workers' firm or subdivision 
     accounting for not less than 20 percent of the sales of the 
     workers' firm or subdivision (as the case may be) certify to 
     the Secretary that such customers are obtaining such services 
     from a foreign country.
       ``(2) Shift in production; obtaining articles or services 
     abroad.--For purposes of subsections (a)(2)(B) and (b)(2), 
     the Secretary may determine that there has been a shift in 
     production of articles or provision of services, or that a 
     workers' firm or public agency, or subdivision thereof, has 
     obtained or is likely to obtain like or directly competitive 
     articles or services from a foreign country, based on a 
     certification thereof from the workers' firm, public agency, 
     or subdivision (as the case may be).
       ``(3) Process and methods for obtaining certifications.--
       ``(A) Request by petitioner.--If requested by the 
     petitioner, the Secretary shall obtain the certifications 
     under paragraphs (1) and (2) in such manner as the Secretary 
     determines is appropriate, including by issuing subpoenas 
     under section 249 when necessary.
       ``(B) Protection of confidential information.--The 
     Secretary may not release information obtained under 
     subparagraph (A) that the Secretary considers to be 
     confidential business information unless the party submitting 
     the confidential business information had notice, at the time 
     of submission, that such information would be released by the 
     Secretary, or such party subsequently consents to the release 
     of the information. Nothing in this subparagraph shall be 
     construed to prohibit a court from requiring the submission 
     of such confidential business information to the court in 
     camera.''.
       (c) Definitions.--Section 247 of the Trade Act of 1974 (19 
     U.S.C. 2319) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``chapter--'' and inserting ``chapter:'';
       (2) in paragraph (1)--
       (A) by inserting ``, or employment in a public agency or 
     appropriate subdivision of a public agency,'' after ``of a 
     firm''; and
       (B) by striking ``such firm or subdivision'' inserting 
     ``such firm (or subdivision) or public agency (or 
     subdivision)'';
       (3) in paragraph (2), by striking ``employment--'' and all 
     that follows and inserting ``employment has been totally or 
     partially separated from such employment.'';
       (4) by redesignating paragraphs (8) through (17) as 
     paragraphs (10) through (19), respectively; and
       (5) by inserting after paragraph (6) the following:
       ``(7) The term `public agency' means a department or agency 
     of a State or local government or of the Federal Government.
       ``(8) The term `service sector firm' means an entity 
     engaged in the business of providing services.
       ``(9) Except as otherwise provided, the term `Secretary' 
     means the Secretary of Labor.''.

     SEC. 102. DETERMINATIONS BY SECRETARY OF LABOR.

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

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

       (a) In General.--Section 282 of the Trade Act of 1974 (19 
     U.S.C. 2393) is amended--
       (1) in the heading, by striking ``SYSTEM'' and inserting 
     ``AND DATA COLLECTION'';
       (2) in the first sentence--
       (A) by striking ``The Secretary'' and inserting ``(a) 
     Monitoring Programs.--The Secretary'';
       (B) by inserting ``and services'' after ``imports of 
     articles'';
       (C) by inserting ``and domestic provision of services'' 
     after ``domestic production'';
       (D) by inserting ``or providing services'' after 
     ``producing articles''; and
       (E) by inserting ``, or provision of services,'' after 
     ``changes in production''; and
       (3) by adding at the end the following:
       ``(b) Collection of Data and Reports on Service Sector.--
       ``(1) Secretary of labor.--Not later than 90 days after the 
     date of the enactment of the Trade and Globalization 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

[[Page 28848]]

     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.

     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

[[Page 28849]]

     an equivalent postgraduate certification in a specialized 
     field.''; and
       (2) in paragraph (3)--
       (A) in subparagraph (A), by striking ``may authorize'' and 
     inserting ``shall authorize'';
       (B) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (C) by inserting after subparagraph (A) the following:
       ``(B) Duration of waivers.--A waiver issued under paragraph 
     (1) by a cooperating State shall be effective for not more 
     than 3 months after the date on which the waiver is issued, 
     except that the State, upon reviewing the waiver, may extend 
     the waiver for an additional period of not more than 3 months 
     if the State determines that the waiver should be 
     maintained.''.
       (c) Determinations of Eligibility by State Employees 
     Appointed on Merit Basis.--Such section 231 is further 
     amended by adding at the end the following:
       ``(d) Determinations of Eligibility by State Employees 
     Appointed on Merit Basis.--All determinations of eligibility 
     for trade readjustment allowances under this part shall be 
     made by employees of the State who are appointed on a merit 
     basis.''.
       (d) Conforming Amendment.--Section 233 of the Trade Act of 
     1974 (19 U.S.C. 2293) is amended by striking subsection (b) 
     and redesignating subsections (c) through (g) as subsections 
     (b) through (f), respectively.

     SEC. 122. WEEKLY AMOUNTS.

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

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

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

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

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

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

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

     SEC. 126. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

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

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

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

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

     SEC. 127. TRAINING.

       (a) In General.--Subsection (a)(1) of section 236 of the 
     Trade Act of 1974 (19 U.S.C. 2296) is amended by striking the 
     last sentence.

[[Page 28850]]

       (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).''.
       (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

[[Page 28851]]

     (19 U.S.C. 2295 et seq.) is amended by inserting after 
     section 236 the following:

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

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

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

     SEC. 131. JOB SEARCH AND RELOCATION ALLOWANCES.

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

                   Subtitle D--Health Care Provisions

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

       (a) Increase in Credit Percentage Amount.--
       (1) In general.--Subsection (a) of section 35 of the 
     Internal Revenue Code of 1986 is amended by striking ``65 
     percent'' and inserting ``85 percent''.
       (2) Conforming amendment.--Subsection (b) of section 7527 
     of such Code is amended by striking ``65 percent'' and 
     inserting ``85 percent''.
       (b) TAA Recipients Receiving Unemployment Compensation and 
     Not Enrolled in Training Program Eligible for Credit.--
     Paragraph (2) of section 35(c) of such Code is amended to 
     read as follows:
       ``(2) Eligible taa recipient.--The term `eligible TAA 
     recipient' means, with respect to any month, any individual 
     who--
       ``(A) is receiving for any day of such month a trade 
     readjustment allowance under chapter 2 of title II of the 
     Trade Act of 1974, or
       ``(B) who is receiving unemployment compensation (as 
     defined in section 85) for such month and who would be 
     eligible to receive such allowance for such month if section 
     231 of such Act were applied without regard to subsections 
     (a)(3)(B) and (a)(5) thereof.

     An individual shall continue to be treated as an eligible TAA 
     recipient during the first month that such individual would 
     otherwise cease to be an eligible TAA recipient by reason of 
     the preceding sentence.''.
       (c) Eligibility for Eligible Individuals Made Retroactive 
     to TAA-Related Loss of Employment.--Subsection (c) of section 
     35 of such Code is amended by adding at the end the following 
     new paragraph:
       ``(5) Retroactive eligibility for taa recipients.--In the 
     case of any individual who is an eligible TAA recipient or 
     eligible alternative TAA recipient for any month, such 
     individual shall be treated as an eligible individual for any 
     month which precedes such month and which begins after the 
     later of--
       ``(A) the date of the separation from employment which 
     gives rise to such individual being an eligible TAA recipient 
     or eligible alternative TAA recipient, or
       ``(B) December 31, 2007.''.
       (d) Continued Qualification of Family Members After Certain 
     Events.--
       (1) In general.--Subsection (g) of section 35 of such Code 
     is amended by redesignating paragraph (9) as paragraph (10) 
     and inserting after paragraph (8) the following new 
     paragraph:
       ``(9) Continued qualification of family members after 
     certain events.--
       ``(A) Medicare eligibility.--In the case of any month which 
     would be an eligible coverage month with respect to an 
     eligible individual but for subsection (f)(2)(A), such month 
     shall be treated as an eligible coverage month with respect 
     to such eligible individual solely for purposes of 
     determining the amount of the credit under this section with 
     respect to any qualifying family members of such individual 
     (and any advance payment of such credit under section 7527). 
     This subparagraph shall only apply with respect to the first 
     36 months after such eligible individual is first entitled to 
     the benefits described in subsection (f)(2)(A).
       ``(B) Divorce.--In the case of the finalization of a 
     divorce between an eligible individual and such individual's 
     spouse, such spouse shall be treated as an eligible 
     individual for purposes of this section and section 7527 for 
     a period of 36 months beginning with the date of such 
     finalization, except that the only qualifying family members 
     who may be taken into account with respect to such spouse are 
     those individuals who were qualifying family members 
     immediately before such finalization.
       ``(C) Death.--In the case of the death of an eligible 
     individual--
       ``(i) any spouse of such individual (determined at the time 
     of such death) shall be treated as an eligible individual for 
     purposes of this section and section 7527 for a period of 36 
     months beginning with the date of such death, except that the 
     only qualifying family members who may be taken into account 
     with respect to such spouse are those individuals who were 
     qualifying family members immediately before such death, and
       ``(ii) any individual who was a qualifying family member of 
     the decedent immediately before such death (or, in the case 
     of an individual to whom paragraph (4) applies, the taxpayer 
     to whom the deduction under section 151 is allowable) shall 
     be treated as an eligible individual for purposes of this 
     section and section 7527 for a period of 36 months beginning 
     with the date of such death, except that in determining the 
     amount of such credit only such qualifying family member may 
     be taken into account.''.
       (2) Conforming amendment.--Section 173(f) of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by 
     adding at the end the following:
       ``(8) Continued qualification of family members after 
     certain events.--
       ``(A) Medicare eligibility.--In the case of any month which 
     would be an eligible coverage month with respect to an 
     eligible individual but for paragraph (7)(B)(i), such month 
     shall be treated as an eligible coverage month with respect 
     to such eligible individual solely for purposes of 
     determining the eligibility of qualifying family members of 
     such individual under this subsection. This subparagraph 
     shall only apply with respect to the first 36 months after 
     such eligible individual is first entitled to the benefits 
     described in paragraph (7)(B)(i).
       ``(B) Divorce.--In the case of the finalization of a 
     divorce between an eligible individual and such individual's 
     spouse, such spouse shall be treated as an eligible 
     individual for purposes of this subsection for a period of 36 
     months beginning with the date of such finalization, except 
     that the only qualifying family members who may be taken into 
     account with respect to such spouse are those individuals who 
     were qualifying family members immediately before such 
     finalization.
       ``(C) Death.--In the case of the death of an eligible 
     individual--
       ``(i) any spouse of such individual (determined at the time 
     of such death) shall be treated as an eligible individual for 
     purposes of this subsection for a period of 36 months 
     beginning with the date of such death, except that the only 
     qualifying family members who may be taken into account with 
     respect to such spouse are those individuals who were 
     qualifying family members immediately before such death, and
       ``(ii) any individual who was a qualifying family member of 
     the decedent immediately before such death shall be treated 
     as an eligible individual for purposes this subsection for a 
     period of 36 months beginning with the date of such death, 
     except that no qualifying family members may be taken into 
     account with respect to such individual.''.

[[Page 28852]]

       (e) Modification of Creditable Coverage Requirement.--
       (1) In general.--Subparagraph (B) of section 35(e)(2) of 
     such Code is amended to read as follows:
       ``(B) Qualifying individual.--For purposes of this 
     paragraph, the term `qualifying individual' means an eligible 
     individual and the qualifying family members of such 
     individual if such individual meets the requirements of 
     clauses (iii) and (iv) of subsection (b)(1)(A) and--
       ``(i) in the case of an eligible TAA recipient or an 
     eligible alternative TAA recipient, has (as of the date on 
     which the individual seeks to enroll in the coverage 
     described in subparagraphs (B) through (H) of paragraph (1)) 
     a period of creditable coverage (as defined in section 
     9801(c)), or
       ``(ii) in the case of an eligible PBGC pension recipient, 
     enrolls in such coverage during the 90-day period beginning 
     on the later of--

       ``(I) the last day of the first month with respect to which 
     such recipient becomes an eligible PBGC pension recipient, or
       ``(II) the date of the enactment of this subparagraph.''.

       (2) Conforming amendment.--Clause (ii) of section 
     172(f)(2)(B) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2918(f)(2)(B)) is amended to read as follows:
       ``(ii) Qualifying individual.--For purposes of this 
     subparagraph, the term `qualifying individual' means an 
     eligible individual and the qualifying family members of such 
     individual if such individual meets the requirements of 
     clauses (iii) and (iv) of section 35(b)(1)(A) of the Internal 
     Revenue Code of 1986 and--

       ``(I) in the case of an eligible TAA recipient or an 
     eligible alternative TAA recipient, has (as of the date on 
     which the individual seeks to enroll in the coverage 
     described in clauses (ii) through (viii) of subparagraph (A)) 
     a period of creditable coverage (as defined in section 
     9801(c) of such Code), or
       ``(II) in the case of an eligible PBGC pension recipient, 
     enrolls in such coverage during the 90-day period beginning 
     on the later of--

       ``(aa) the last day of the first month with respect to 
     which such recipient becomes an eligible PBGC pension 
     recipient, or
       ``(bb) the date of the enactment of this clause.''.
       (3) Outreach.--The Secretary of the Treasury shall carry 
     out a program to notify individuals prior to their becoming 
     eligible PBGC pension recipients (as defined in section 35 of 
     the Internal Revenue Code of 1986) of the requirement of 
     subsection (e)(2)(B)(ii) of such section, as added by this 
     subsection.
       (f) TAA Pre-Certification Period Rule for Purposes of 
     Determining Whether There Is a 63-Day Lapse in Creditable 
     Coverage.--
       (1) IRC amendment.--Section 9801(c)(2) of the Internal 
     Revenue Code of 1986 (relating to not counting periods before 
     significant breaks in creditable coverage) is amended by 
     adding at the end the following new subparagraph:
       ``(D) TAA-eligible individuals.--
       ``(i) TAA pre-certification period rule.--In the case of a 
     TAA-eligible individual, the period beginning on the date the 
     individual has a TAA-related loss of coverage and ending on 
     the date which is 5 days after the postmark date of the 
     notice by the Secretary (or by any person or entity 
     designated by the Secretary) that the individual is eligible 
     for a qualified health insurance costs credit eligibility 
     certificate for purposes of section 7527 shall not be taken 
     into account in determining the continuous period under 
     subparagraph (A).
       ``(ii) Definitions.--The terms `TAA-eligible individual', 
     and `TAA-related loss of coverage' have the meanings given 
     such terms in section 4980B(f)(5)(C)(iv).''.
       (2) ERISA amendment.--Section 701(c)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) TAA-eligible individuals.--
       ``(i) TAA pre-certification period rule.--In the case of a 
     TAA-eligible individual, the period beginning on the date the 
     individual has a TAA-related loss of coverage and ending on 
     the date that is 5 days after the postmark date of the notice 
     by the Secretary (or by any person or entity designated by 
     the Secretary) that the individual is eligible for a 
     qualified health insurance costs credit eligibility 
     certificate for purposes of section 7527 of the Internal 
     Revenue Code of 1986 shall not be taken into account in 
     determining the continuous period under subparagraph (A).
       ``(ii) Definitions.--The terms `TAA-eligible individual', 
     and `TAA-related loss of coverage' have the meanings given 
     such terms in section 605(b)(4)(c).''.
       (3) PHSA amendment.--Section 2701(c)(2) of the Public 
     Health Service Act (42 U.S.C. 300gg(c)(2)) is amended by 
     adding at the end the following new subparagraph:
       ``(C) TAA-eligible individuals.--
       ``(i) TAA pre-certification period rule.--In the case of a 
     TAA-eligible individual, the period beginning on the date the 
     individual has a TAA-related loss of coverage and ending on 
     the date that is 5 days after the postmark date of the notice 
     by the Secretary (or by any person or entity designated by 
     the Secretary) that the individual is eligible for a 
     qualified health insurance costs credit eligibility 
     certificate for purposes of section 7527 of the Internal 
     Revenue Code of 1986 shall not be taken into account in 
     determining the continuous period under subparagraph (A).
       ``(ii) Definitions.--The terms `TAA-eligible individual', 
     and `TAA-related loss of coverage' have the meanings given 
     such terms in section 2205(b)(4)(c).''.
       (g) Rating System Requirement for Certain State-Based 
     Coverage.--
       (1) In general.--Subparagraph (A) of section 35(e)(2) of 
     such Code is amended by adding at the end the following new 
     clause:
       ``(v) Rating system requirement.--In the case of coverage 
     described in paragraph (1)(F)(ii), the premiums for such 
     coverage are restricted, based on a community rating system 
     with respect to eligible individuals and their qualifying 
     family members, or based on a rate-band system under which 
     the maximum rate which may be charged does not exceed 150 
     percent of the standard rate with respect to eligible 
     individuals and their qualifying family members.''.
       (2) Conforming amendment.--Clause (i) of section 
     173(f)(2)(B) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2918(f)(2)(B)) is amended by adding at the end the 
     following new subclause:

       ``(V) Rating system requirement.--In the case of coverage 
     described in subparagraph (A)(vi)(II), the premiums for such 
     coverage are restricted, based on a community rating system 
     with respect to eligible individuals and their qualifying 
     family members, or based on a rate-band system under which 
     the maximum rate which may be charged does not exceed 150 
     percent of the standard rate with respect to eligible 
     individuals and their qualifying family members.''.

       (h) Termination of Program.--
       (1) In general.--Section 35 of such Code is amended by 
     adding at the end the following new subsection:
       ``(h) Termination.--An individual shall not be treated as 
     an eligible individual for purposes of this section or 
     section 7527 for any month beginning after December 31, 2009, 
     unless such individual was an eligible individual for a 
     continuous period of months ending with such month and 
     beginning before such date.''.
       (2) Conforming amendment.--Subsection (f) of section 173 of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2918) is 
     amended by adding at the end the following new paragraph:
       ``(8) Termination.--An individual shall not be treated as 
     an eligible individual for purposes of this subsection for 
     any month beginning after December 31, 2009, unless such 
     individual was an eligible individual for a continuous period 
     of months ending with such month and beginning before such 
     date.''.
       (i) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to months beginning after December 31, 2007, in taxable years 
     ending after such date.
       (2) Rating system requirement.--The amendments made by 
     subsection (g) shall apply to months beginning after March 
     31, 2008, in taxable years ending after such date.
       (3) Discretion to delay effective date for purposes of 
     advance payment program.--Solely for purposes of carrying out 
     the advance payment program under section 7527, the Secretary 
     may provide that one or more amendments made by subsections 
     (b), (c), and (d) shall not apply to one or more months 
     beginning before March 31, 2008, to the extent that the 
     Secretary determines that such delay is necessary to properly 
     implement any such amendment as part of such program.
       (j) GAO Study and Report.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study regarding the health insurance tax 
     credit allowed under section 35 of the Internal Revenue Code 
     of 1986.
       (2) Report.--Not later than March 1, 2009, the Comptroller 
     General shall submit a report to Congress regarding the 
     results of the study conducted under paragraph (1). Such 
     report shall include an analysis of--
       (A) the administrative costs--
       (i) of the Federal Government with respect to such credit 
     and the advance payment of such credit under section 7527 of 
     such Code, and
       (ii) of providers of qualified health insurance with 
     respect to providing such insurance to eligible individuals 
     and their qualifying family members,
       (B) the health status and relative risk status of eligible 
     individuals and qualifying family members covered under such 
     insurance,
       (C) participation in such credit and the advance payment of 
     such credit by eligible individuals and their qualifying 
     family members, including the reasons why such individuals 
     did or did not participate and the effect of the amendments 
     made by this section on such participation, and
       (D) the extent to which eligible individuals and their 
     qualifying family members--
       (i) obtained health insurance other than qualifying health 
     insurance, or
       (ii) went without health insurance coverage.

[[Page 28853]]

       (3) Access to records.--For purposes of conducting the 
     study required under this subsection, the Comptroller General 
     and any of his duly authorized representatives shall have 
     access to, and the right to examine and copy, all documents, 
     records, and other recorded information--
       (A) within the possession or control of providers of 
     qualified health insurance, and
       (B) determined by the Comptroller General (or any such 
     representative) to be relevant to the study.

     The Comptroller General shall not disclose the identity of 
     any provider of qualified health insurance or any eligible 
     individual in making any information obtained under this 
     section available to the public.
       (4) Definitions.--Any term which is defined in section 35 
     of the Internal Revenue Code of 1986 shall have the same 
     meaning when used in this subsection.

                       Subtitle E--Wage Insurance

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

       (a) In General.--Section 246 of the Trade Act of 1974 (19 
     U.S.C. 2318) is amended--
       (1) by amending the heading to read as follows: 
     ``REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE'';
       (2) in subsection (a)--
       (A) in paragraph (1), by striking ``alternative'' and 
     inserting ``reemployment'';
       (B) in paragraph (2)(A), by striking ``for a period not to 
     exceed 2 years'' and inserting ``for the eligibility period 
     under paragraph (3)(C)''; and
       (C) by striking paragraphs (3) through (5) and inserting 
     the following:
       ``(3) Eligibility.--
       ``(A) In general.--A group of workers certified under 
     subchapter A as eligible for adjustment assistance under 
     subchapter A is eligible for benefits described in paragraph 
     (2) under the program established under paragraph (1).
       ``(B) Individual eligibility.--A worker in a group of 
     workers described in subparagraph (A) may elect to receive 
     benefits described in paragraph (2) under the program 
     established under paragraph (1) if the worker--
       ``(i) is at least 50 years of age;
       ``(ii) earns not more than $60,000 each year in wages from 
     reemployment;
       ``(iii)(I) is employed on a full-time basis as defined by 
     State law in the State in which the worker is employed; or
       ``(II) is employed at least 20 hours per week and is 
     enrolled in training approved under section 236; and
       ``(iv) does not return to the employment from which the 
     worker was separated.

     In the case of a worker described in clause (iii)(II), the 
     percentage referred to in paragraph (2)(A) shall be deemed to 
     be a percentage equal to \1/2\ of the ratio of weekly hours 
     of employment referred to in clause (iii)(II) to weekly hours 
     of employment of that worker at the time of separation (but 
     not more than 50 percent).
       ``(C) Eligibility period for payments.--A worker in a group 
     of workers described in subparagraph (A) may receive payments 
     described in paragraph (2)(A) under the program established 
     under paragraph (1) for a period not to exceed 2 years from 
     the date on which the worker exhausts all rights to 
     unemployment insurance based on the separation of the worker 
     from adversely affected employment or the date on which the 
     worker obtains reemployment, whichever is earlier.
       ``(D) Training.--A worker described in subparagraph (B) 
     shall be eligible to receive training approved under section 
     236.
       ``(4) Total amount of payments.--The payments described in 
     paragraph (2)(A) made to a worker may not exceed $12,000 per 
     worker during the eligibility period under paragraph (3)(C).
       ``(5) Limitation on other benefits.--A worker described in 
     paragraph (3) may not receive a trade readjustment allowance 
     under part I of subchapter B during any week for which the 
     worker receives a payment described in paragraph (2)(A).''; 
     and
       (3) in subsection (b)(2), by striking ``subsection 
     (a)(3)(B)'' and inserting ``subsection (a)(3)''.
       (b) Extension of Program.--Subsection (b)(1) of such 
     section is amended by striking ``5'' and inserting ``10''.
       (c) Clerical Amendment.--The table of contents for title II 
     of the Trade Act of 1974 is amended by striking the item 
     relating to section 246 and inserting the following:

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

                       Subtitle F--Other Matters

     SEC. 161. AGREEMENTS WITH STATES.

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

     SEC. 162. FRAUD AND RECOVERY OF OVERPAYMENTS.

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

     SEC. 163. TECHNICAL AMENDMENTS.

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

``249. Subpoena power.''.

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

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

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

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

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

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

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

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

       ``(a) In General.--Not later than 90 days after the date of 
     the enactment of the Trade and Globalization 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

[[Page 28854]]

     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.

     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

[[Page 28855]]

       (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 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

[[Page 28856]]

     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 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--

[[Page 28857]]

       ``(A) $15,000,000 with respect to any 1 manufacturing 
     redevelopment zone, or
       ``(B) $20,000,000 with respect to all manufacturing 
     redevelopment zones.
       ``(2) Aggregate enterprise zone facility bond benefit.--For 
     purposes of paragraph (1), the aggregate amount of 
     outstanding manufacturing zone facility bonds allocable to 
     any person shall be determined under rules similar to the 
     rules of section 144(a)(10), taking into account only bonds 
     to which subsection (a) applies.
       ``(d) Manufacturing Zone Property.--For purposes of this 
     section--
       ``(1) In general.--The term `manufacturing zone property' 
     means any property to which section 168 applies (or would 
     apply but for section 179) if--
       ``(A) such property was acquired by the taxpayer by 
     purchase (as defined in section 179(d)(2)) after the date on 
     which the designation of the manufacturing redevelopment zone 
     took effect,
       ``(B) the original use of which in the manufacturing 
     redevelopment zone commences with the taxpayer, and
       ``(C) substantially all of the use of which is in the 
     manufacturing redevelopment zone and is in the active conduct 
     of a qualified business by the taxpayer in such zone.
       ``(2) Qualified business.--The term `qualified business' 
     means any trade or business except that--
       ``(A) the rental to others of real property located in a 
     manufacturing redevelopment zone shall be treated as a 
     qualified business only if the property is not residential 
     rental property (as defined in section 168(e)(2)), and
       ``(B) such term shall not include any trade or business 
     consisting of the operation of any facility described in 
     section 144(c)(6)(B).
       ``(3) Special rules for substantial renovations and sale-
     leaseback.--Rules similar to the rules of subsections (a)(2) 
     and (b) of section 1397D shall apply for purposes of this 
     subsection.
       ``(e) Nonapplication of Certain Rules.--Sections 57(a)(5) 
     (relating to tax-exempt interest), 146 (relating to volume 
     cap), and 147(d) (relating to acquisition of existing 
     property not permitted) shall not apply to any manufacturing 
     zone facility bond.

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

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

                ``Subpart I--Qualified Tax Credit Bonds

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

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

       ``(a) Allowance of Credit.--If a taxpayer holds a qualified 
     tax credit bond on one or more credit allowance dates of the 
     bond during any taxable year, there shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of the credits 
     determined under subsection (b) with respect to such dates.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a qualified tax credit bond is 25 percent of the 
     annual credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any qualified tax credit bond is the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate is the rate which the 
     Secretary estimates will permit the issuance of qualified tax 
     credit bonds with a specified maturity or redemption date 
     without discount and without interest cost to the qualified 
     issuer. The applicable credit rate with respect to any 
     qualified tax credit bond shall be determined as of the first 
     day on which there is a binding, written contract for the 
     sale or exchange of the bond.
       ``(4) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed or matures.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than subpart C and this subpart).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year 
     (determined before the application of paragraph (1) for such 
     succeeding taxable year).
       ``(d) Qualified Tax Credit Bond.--For purposes of this 
     section--
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means a manufacturing redevelopment bond (as 
     defined in section 1400U-3) which is part of an issue that 
     meets the requirements of paragraphs (2), (3), (4), (5), and 
     (6).
       ``(2) Special rules relating to expenditures.--
       ``(A) In general.--An issue shall be treated as meeting the 
     requirements of this paragraph if, as of the date of 
     issuance, the issuer reasonably expects--
       ``(i) 100 percent or more of the available project proceeds 
     to be spent for 1 or more qualified purposes within the 3-
     year period beginning on such date of issuance, and
       ``(ii) a binding commitment with a third party to spend at 
     least 10 percent of such available project proceeds will be 
     incurred within the 6-month period beginning on such date of 
     issuance.
       ``(B) Failure to spend required amount of bond proceeds 
     within 3 years.--
       ``(i) In general.--To the extent that less than 100 percent 
     of the available project proceeds of the issue are expended 
     by the close of the expenditure period for 1 or more 
     qualified purposes, the issuer shall redeem all of the 
     nonqualified bonds within 90 days after the end of such 
     period. For purposes of this paragraph, the amount of the 
     nonqualified bonds required to be redeemed shall be 
     determined in the same manner as under section 142.
       ``(ii) Expenditure period.--For purposes of this subpart, 
     the term `expenditure period' means, with respect to any 
     issue, the 3-year period beginning on the date of issuance. 
     Such term shall include any extension of such period under 
     clause (iii).
       ``(iii) Extension of period.--Upon submission of a request 
     prior to the expiration of the expenditure period (determined 
     without regard to any extension under this clause), the 
     Secretary may extend such period if the issuer establishes 
     that the failure to expend the proceeds within the original 
     expenditure period is due to reasonable cause and the 
     expenditures for qualified purposes will continue to proceed 
     with due diligence.
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means a purpose specified in 
     section 1400U-3(a)(1).
       ``(D) Reimbursement.--For purposes of this subtitle, 
     available project proceeds of an issue shall be treated as 
     spent for a qualified purpose if such proceeds are used to 
     reimburse the issuer for amounts paid for a qualified purpose 
     after the date that the Secretary makes an allocation of bond 
     limitation with respect to such issue, but only if--
       ``(i) prior to the payment of the original expenditure, the 
     issuer declared its intent to reimburse such expenditure with 
     the proceeds of a qualified tax credit bond,
       ``(ii) not later than 60 days after payment of the original 
     expenditure, the issuer adopts an official intent to 
     reimburse the original expenditure with such proceeds, and
       ``(iii) the reimbursement is made not later than 18 months 
     after the date the original expenditure is paid.

[[Page 28858]]

       ``(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 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.

[[Page 28859]]

                      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)'';
       (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

[[Page 28860]]

       (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 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

[[Page 28861]]

     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 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:

[[Page 28862]]

       ``(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 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;

[[Page 28863]]

       ``(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 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.

[[Page 28864]]

       ``(3) Administration requirement.--Funds provided to a 
     State under this subsection may only be administered by 
     employees of the State who are appointed on a merit basis.
       ``(c) Funding.--Funds provided to the States under this 
     section shall not be counted toward the limitation contained 
     in section 236(a)(2)(A).''.
       (b) Clerical Amendment.--The table of contents for title II 
     of the Trade Act of 1974 is amended by inserting after the 
     item relating to section 236 the following:

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

     SEC. 131. JOB SEARCH AND RELOCATION ALLOWANCES.

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

                   Subtitle D--Health Care Provisions

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

       (a) Increase in Credit Percentage Amount.--
       (1) In general.--Subsection (a) of section 35 of the 
     Internal Revenue Code of 1986 is amended by striking ``65 
     percent'' and inserting ``85 percent''.
       (2) Conforming amendment.--Subsection (b) of section 7527 
     of such Code is amended by striking ``65 percent'' and 
     inserting ``85 percent''.
       (b) TAA Recipients Receiving Unemployment Compensation and 
     Not Enrolled in Training Program Eligible for Credit.--
     Paragraph (2) of section 35(c) of such Code is amended to 
     read as follows:
       ``(2) Eligible taa recipient.--The term `eligible TAA 
     recipient' means, with respect to any month, any individual 
     who--
       ``(A) is receiving for any day of such month a trade 
     readjustment allowance under chapter 2 of title II of the 
     Trade Act of 1974, or
       ``(B) who is receiving unemployment compensation (as 
     defined in section 85) for such month and who would be 
     eligible to receive such allowance for such month if section 
     231 of such Act were applied without regard to subsections 
     (a)(3)(B) and (a)(5) thereof.

     An individual shall continue to be treated as an eligible TAA 
     recipient during the first month that such individual would 
     otherwise cease to be an eligible TAA recipient by reason of 
     the preceding sentence.''.
       (c) Eligibility for Eligible Individuals Made Retroactive 
     to TAA-Related Loss of Employment.--Subsection (c) of section 
     35 of such Code is amended by adding at the end the following 
     new paragraph:
       ``(5) Retroactive eligibility for taa recipients.--In the 
     case of any individual who is an eligible TAA recipient or 
     eligible alternative TAA recipient for any month, such 
     individual shall be treated as an eligible individual for any 
     month which precedes such month and which begins after the 
     later of--
       ``(A) the date of the separation from employment which 
     gives rise to such individual being an eligible TAA recipient 
     or eligible alternative TAA recipient, or
       ``(B) December 31, 2007.''.
       (d) Continued Qualification of Family Members After Certain 
     Events.--
       (1) In general.--Subsection (g) of section 35 of such Code 
     is amended by redesignating paragraph (9) as paragraph (10) 
     and inserting after paragraph (8) the following new 
     paragraph:
       ``(9) Continued qualification of family members after 
     certain events.--
       ``(A) Medicare eligibility.--In the case of any month which 
     would be an eligible coverage month with respect to an 
     eligible individual but for subsection (f)(2)(A), such month 
     shall be treated as an eligible coverage month with respect 
     to such eligible individual solely for purposes of 
     determining the amount of the credit under this section with 
     respect to any qualifying family members of such individual 
     (and any advance payment of such credit under section 7527). 
     This subparagraph shall only apply with respect to the first 
     36 months after such eligible individual is first entitled to 
     the benefits described in subsection (f)(2)(A).
       ``(B) Divorce.--In the case of the finalization of a 
     divorce between an eligible individual and such individual's 
     spouse, such spouse shall be treated as an eligible 
     individual for purposes of this section and section 7527 for 
     a period of 36 months beginning with the date of such 
     finalization, except that the only qualifying family members 
     who may be taken into account with respect to such spouse are 
     those individuals who were qualifying family members 
     immediately before such finalization.
       ``(C) Death.--In the case of the death of an eligible 
     individual--
       ``(i) any spouse of such individual (determined at the time 
     of such death) shall be treated as an eligible individual for 
     purposes of this section and section 7527 for a period of 36 
     months beginning with the date of such death, except that the 
     only qualifying family members who may be taken into account 
     with respect to such spouse are those individuals who were 
     qualifying family members immediately before such death, and
       ``(ii) any individual who was a qualifying family member of 
     the decedent immediately before such death (or, in the case 
     of an individual to whom paragraph (4) applies, the taxpayer 
     to whom the deduction under section 151 is allowable) shall 
     be treated as an eligible individual for purposes of this 
     section and section 7527 for a period of 36 months beginning 
     with the date of such death, except that in determining the 
     amount of such credit only such qualifying family member may 
     be taken into account.''.
       (2) Conforming amendment.--Section 173(f) of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by 
     adding at the end the following:
       ``(8) Continued qualification of family members after 
     certain events.--
       ``(A) Medicare eligibility.--In the case of any month which 
     would be an eligible coverage month with respect to an 
     eligible individual but for paragraph (7)(B)(i), such month 
     shall be treated as an eligible coverage month with respect 
     to such eligible individual solely for purposes of 
     determining the eligibility of qualifying family members of 
     such individual under this subsection. This subparagraph 
     shall only apply with respect to the first 36 months after 
     such eligible individual is first entitled to the benefits 
     described in paragraph (7)(B)(i).
       ``(B) Divorce.--In the case of the finalization of a 
     divorce between an eligible individual and such individual's 
     spouse, such spouse shall be treated as an eligible 
     individual for purposes of this subsection for a period of 36 
     months beginning with the date of such finalization, except 
     that the only qualifying family members who may be taken into 
     account with respect to such spouse are those individuals who 
     were qualifying family members immediately before such 
     finalization.
       ``(C) Death.--In the case of the death of an eligible 
     individual--
       ``(i) any spouse of such individual (determined at the time 
     of such death) shall be treated as an eligible individual for 
     purposes of this subsection for a period of 36 months 
     beginning with the date of such death, except that the only 
     qualifying family members who may be taken into account with 
     respect to such spouse are those individuals who were 
     qualifying family members immediately before such death, and
       ``(ii) any individual who was a qualifying family member of 
     the decedent immediately before such death shall be treated 
     as an eligible individual for purposes this subsection for a 
     period of 36 months beginning with the date of such death, 
     except that no qualifying family members may be taken into 
     account with respect to such individual.''.
       (e) Modification of Creditable Coverage Requirement.--
       (1) In general.--Subparagraph (B) of section 35(e)(2) of 
     such Code is amended to read as follows:
       ``(B) Qualifying individual.--For purposes of this 
     paragraph, the term `qualifying individual' means an eligible 
     individual and the qualifying family members of such 
     individual if such individual meets the requirements of 
     clauses (iii) and (iv) of subsection (b)(1)(A) and--
       ``(i) in the case of an eligible TAA recipient or an 
     eligible alternative TAA recipient, has (as of the date on 
     which the individual seeks to enroll in the coverage 
     described in subparagraphs (B) through (H) of paragraph (1)) 
     a period of creditable coverage (as defined in section 
     9801(c)), or
       ``(ii) in the case of an eligible PBGC pension recipient, 
     enrolls in such coverage during the 90-day period beginning 
     on the later of--

       ``(I) the last day of the first month with respect to which 
     such recipient becomes an eligible PBGC pension recipient, or
       ``(II) the date of the enactment of this subparagraph.''.

       (2) Conforming amendment.--Clause (ii) of section 
     172(f)(2)(B) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2918(f)(2)(B)) is amended to read as follows:
       ``(ii) Qualifying individual.--For purposes of this 
     subparagraph, the term `qualifying individual' means an 
     eligible individual and the qualifying family members of such 
     individual if such individual meets the requirements of 
     clauses (iii) and (iv) of section 35(b)(1)(A) of the Internal 
     Revenue Code of 1986 and--

       ``(I) in the case of an eligible TAA recipient or an 
     eligible alternative TAA recipient, has (as of the date on 
     which the individual seeks to enroll in the coverage 
     described in clauses (ii) through (viii) of subparagraph (A)) 
     a period of creditable coverage (as defined in section 
     9801(c) of such Code), or
       ``(II) in the case of an eligible PBGC pension recipient, 
     enrolls in such coverage during the 90-day period beginning 
     on the later of--

       ``(aa) the last day of the first month with respect to 
     which such recipient becomes an eligible PBGC pension 
     recipient, or
       ``(bb) the date of the enactment of this clause.''.
       (3) Outreach.--The Secretary of the Treasury shall carry 
     out a program to notify individuals prior to their becoming 
     eligible PBGC pension recipients (as defined in section 35 of 
     the Internal Revenue Code of 1986) of the requirement of

[[Page 28865]]

     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.
       ``(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.''.

[[Page 28866]]

       (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 28867]]

       (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;

[[Page 28868]]

       (II) in clause (ii)--

       (aa) by inserting ``or service'' after ``of an article''; 
     and
       (bb) by striking ``, and'' and inserting a comma; and

       (III) by adding at the end the following:

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

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

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

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

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

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

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

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

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

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

           TITLE III--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

[[Page 28869]]

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

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

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

     SEC. 303. EXTENSION OF FUTA TAX.

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

     SEC. 304. SAFETY NET REVIEW COMMISSION.

       (a) Establishment.--The Secretary of Labor shall establish 
     an advisory commission to be known as the ``Safety Net Review 
     Commission'' (hereinafter in this section referred to as the 
     ``Commission'').
       (b) Function.--It shall be the function of the Commission 
     to evaluate the unemployment compensation program, the Trade 
     Adjustment Assistance program, the Job Corps program, a 
     program under the Workforce Investment Act, and other 
     employment assistance programs, including the purpose, goals, 
     countercyclical effectiveness, coverage, benefit adequacy, 
     trust fund solvency, funding of State administrative costs, 
     administrative efficiency, and any other aspects of each such 
     program, as well as any related provisions of the Internal 
     Revenue Code of 1986, and to make recommendations for their 
     improvement.
       (c) Members.--
       (1) In general.--The Commission shall consist of 11 members 
     as follows:

[[Page 28870]]

       (A) 5 members appointed by the President, to include 
     representatives of business, labor, State government, and the 
     public.
       (B) 3 members appointed by the President pro tempore of the 
     Senate, in consultation with the Chairman and ranking member 
     of the Committee on Finance of the Senate.
       (C) 3 members appointed by the Speaker of the House of 
     Representatives, in consultation with the Chairman and 
     ranking member of the Committee on Ways and Means of the 
     House of Representatives.
       (2) Qualifications.--In appointing members under 
     subparagraphs (B) and (C) of paragraph (1), the President pro 
     tempore of the Senate and the Speaker of the House of 
     Representatives shall each appoint--
       (A) 1 representative of the interests of business,
       (B) 1 representative of the interests of labor, and
       (C) 1 representative of the interests of State governments.
       (3) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (4) Chairman.--The President shall appoint the Chairman of 
     the Commission from among its members.
       (d) Staff and Other Assistance.--
       (1) In general.--The Commission may engage any technical 
     assistance (including actuarial services) required by the 
     Commission to carry out its functions under this section.
       (2) Assistance from secretary of labor.--The Secretary of 
     Labor shall provide the Commission with any staff, office 
     facilities, and other assistance, and any data prepared by 
     the Department of Labor, required by the Commission to carry 
     out its functions under this section.
       (e) Compensation.--Each member of the Commission--
       (1) shall be entitled to receive compensation at the rate 
     of pay for level V of the Executive Schedule under section 
     5316 of title 5, United States Code, for each day (including 
     travel time) during which such member is engaged in the 
     actual performance of duties vested in the Commission; and
       (2) while engaged in the performance of such duties away 
     from such member's home or regular place of business, shall 
     be allowed travel expenses (including per diem in lieu of 
     subsistence) as authorized by section 5703 of such title 5 
     for persons in the Government employed intermittently.
       (f) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Commission shall submit to the 
     President and the Congress a report setting forth the 
     findings and recommendations of the Commission as a result of 
     its evaluation under this section.
       (g) Termination.--The Commission shall terminate 2 months 
     after submitting its report pursuant to subsection (f).

               TITLE 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

[[Page 28871]]

       ``(B) $20,000,000 with respect to all manufacturing 
     redevelopment zones.
       ``(2) Aggregate enterprise zone facility bond benefit.--For 
     purposes of paragraph (1), the aggregate amount of 
     outstanding manufacturing zone facility bonds allocable to 
     any person shall be determined under rules similar to the 
     rules of section 144(a)(10), taking into account only bonds 
     to which subsection (a) applies.
       ``(d) Manufacturing Zone Property.--For purposes of this 
     section--
       ``(1) In general.--The term `manufacturing zone property' 
     means any property to which section 168 applies (or would 
     apply but for section 179) if--
       ``(A) such property was acquired by the taxpayer by 
     purchase (as defined in section 179(d)(2)) after the date on 
     which the designation of the manufacturing redevelopment zone 
     took effect,
       ``(B) the original use of which in the manufacturing 
     redevelopment zone commences with the taxpayer, and
       ``(C) substantially all of the use of which is in the 
     manufacturing redevelopment zone and is in the active conduct 
     of a qualified business by the taxpayer in such zone.
       ``(2) Qualified business.--The term `qualified business' 
     means any trade or business except that--
       ``(A) the rental to others of real property located in a 
     manufacturing redevelopment zone shall be treated as a 
     qualified business only if the property is not residential 
     rental property (as defined in section 168(e)(2)), and
       ``(B) such term shall not include any trade or business 
     consisting of the operation of any facility described in 
     section 144(c)(6)(B).
       ``(3) Special rules for substantial renovations and sale-
     leaseback.--Rules similar to the rules of subsections (a)(2) 
     and (b) of section 1397D shall apply for purposes of this 
     subsection.
       ``(e) Nonapplication of Certain Rules.--Sections 57(a)(5) 
     (relating to tax-exempt interest), 146 (relating to volume 
     cap), and 147(d) (relating to acquisition of existing 
     property not permitted) shall not apply to any manufacturing 
     zone facility bond.

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

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

                ``Subpart I--Qualified Tax Credit Bonds

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

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

       ``(a) Allowance of Credit.--If a taxpayer holds a qualified 
     tax credit bond on one or more credit allowance dates of the 
     bond during any taxable year, there shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of the credits 
     determined under subsection (b) with respect to such dates.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a qualified tax credit bond is 25 percent of the 
     annual credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any qualified tax credit bond is the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate is the rate which the 
     Secretary estimates will permit the issuance of qualified tax 
     credit bonds with a specified maturity or redemption date 
     without discount and without interest cost to the qualified 
     issuer. The applicable credit rate with respect to any 
     qualified tax credit bond shall be determined as of the first 
     day on which there is a binding, written contract for the 
     sale or exchange of the bond.
       ``(4) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed or matures.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than subpart C and this subpart).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year 
     (determined before the application of paragraph (1) for such 
     succeeding taxable year).
       ``(d) Qualified Tax Credit Bond.--For purposes of this 
     section--
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means a manufacturing redevelopment bond (as 
     defined in section 1400U-3) which is part of an issue that 
     meets the requirements of paragraphs (2), (3), (4), (5), and 
     (6).
       ``(2) Special rules relating to expenditures.--
       ``(A) In general.--An issue shall be treated as meeting the 
     requirements of this paragraph if, as of the date of 
     issuance, the issuer reasonably expects--
       ``(i) 100 percent or more of the available project proceeds 
     to be spent for 1 or more qualified purposes within the 3-
     year period beginning on such date of issuance, and
       ``(ii) a binding commitment with a third party to spend at 
     least 10 percent of such available project proceeds will be 
     incurred within the 6-month period beginning on such date of 
     issuance.
       ``(B) Failure to spend required amount of bond proceeds 
     within 3 years.--
       ``(i) In general.--To the extent that less than 100 percent 
     of the available project proceeds of the issue are expended 
     by the close of the expenditure period for 1 or more 
     qualified purposes, the issuer shall redeem all of the 
     nonqualified bonds within 90 days after the end of such 
     period. For purposes of this paragraph, the amount of the 
     nonqualified bonds required to be redeemed shall be 
     determined in the same manner as under section 142.
       ``(ii) Expenditure period.--For purposes of this subpart, 
     the term `expenditure period' means, with respect to any 
     issue, the 3-year period beginning on the date of issuance. 
     Such term shall include any extension of such period under 
     clause (iii).
       ``(iii) Extension of period.--Upon submission of a request 
     prior to the expiration of the expenditure period (determined 
     without regard to any extension under this clause), the 
     Secretary may extend such period if the issuer establishes 
     that the failure to expend the proceeds within the original 
     expenditure period is due to reasonable cause and the 
     expenditures for qualified purposes will continue to proceed 
     with due diligence.
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means a purpose specified in 
     section 1400U-3(a)(1).
       ``(D) Reimbursement.--For purposes of this subtitle, 
     available project proceeds of an issue shall be treated as 
     spent for a qualified purpose if such proceeds are used to 
     reimburse the issuer for amounts paid for a qualified purpose 
     after the date that the Secretary makes an allocation of bond 
     limitation with respect to such issue, but only if--
       ``(i) prior to the payment of the original expenditure, the 
     issuer declared its intent to reimburse such expenditure with 
     the proceeds of a qualified tax credit bond,
       ``(ii) not later than 60 days after payment of the original 
     expenditure, the issuer adopts an official intent to 
     reimburse the original expenditure with such proceeds, and
       ``(iii) the reimbursement is made not later than 18 months 
     after the date the original expenditure is paid.
       ``(3) Reporting.--An issue shall be treated as meeting the 
     requirements of this paragraph if the issuer of qualified tax 
     credit bonds submits reports similar to the reports required 
     under section 149(e).
       ``(4) Special rules relating to arbitrage.--
       ``(A) In general.--An issue shall be treated as meeting the 
     requirements of this paragraph if the issuer satisfies the 
     requirements of section 148 with respect to the proceeds of 
     the issue.
       ``(B) Special rule for investments during expenditure 
     period.--An issue shall not be

[[Page 28872]]

     treated as failing to meet the requirements of subparagraph 
     (A) by reason of any investment of available project proceeds 
     during the expenditure period.
       ``(C) Special rule for reserve funds.--An issue shall not 
     be treated as failing to meet the requirements of 
     subparagraph (A) by reason of any fund which is expected to 
     be used to repay such issue if--
       ``(i) such fund is funded at a rate not more rapid than 
     equal annual installments,
       ``(ii) such fund is funded in a manner that such fund will 
     not exceed the amount necessary to repay the issue if 
     invested at the maximum rate permitted under clause (iii), 
     and
       ``(iii) the yield on such fund is not greater than the 
     discount rate determined under paragraph (5)(B) with respect 
     to the issue.
       ``(5) Maturity limitation.--
       ``(A) In general.--An issue shall not be treated as meeting 
     the requirements of this paragraph if the maturity of any 
     bond which is part of such issue exceeds the maximum term 
     determined by the Secretary under subparagraph (B).
       ``(B) Maximum term.--During each calendar month, the 
     Secretary shall determine the maximum term permitted under 
     this paragraph for bonds issued during the following calendar 
     month. Such maximum term shall be the term which the 
     Secretary estimates will result in the present value of the 
     obligation to repay the principal on the bond being equal to 
     50 percent of the face amount of such bond. Such present 
     value shall be determined using as a discount rate the 
     average annual interest rate of tax-exempt obligations having 
     a term of 10 years or more which are issued during the month. 
     If the term as so determined is not a multiple of a whole 
     year, such term shall be rounded to the next highest whole 
     year.
       ``(e) Other Definitions.--For purposes of this subchapter--
       ``(1) Credit allowance date.--The term `credit allowance 
     date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.
     Such term includes the last day on which the bond is 
     outstanding.
       ``(2) Bond.--The term `bond' includes any obligation.
       ``(3) State.--The term `State' includes the District of 
     Columbia and any possession of the United States.
       ``(4) Available project proceeds.--The term `available 
     project proceeds' means--
       ``(A) the excess of--
       ``(i) the proceeds from the sale of an issue, over
       ``(ii) the issuance costs financed by the issue (to the 
     extent that such costs do not exceed 2 percent of such 
     proceeds), and
       ``(B) the proceeds from any investment of the excess 
     described in subparagraph (A).
       ``(f) Credit Treated as Interest.--For purposes of this 
     subtitle, the credit determined under subsection (a) shall be 
     treated as interest which is includible in gross income.
       ``(g) S Corporations and Partnerships.--In the case of a 
     tax credit bond held by an S corporation or partnership, the 
     allocation of the credit allowed by this section to the 
     shareholders of such corporation or partners of such 
     partnership shall be treated as a distribution.
       ``(h) Bonds Held by Regulated Investment Companies and Real 
     Estate Investment Trusts.--If any qualified tax credit bond 
     is held by a regulated investment company or a real estate 
     investment trust, the credit determined under subsection (a) 
     shall be allowed to shareholders of such company or 
     beneficiaries of such trust (and any gross income included 
     under subsection (f) with respect to such credit shall be 
     treated as distributed to such shareholders or beneficiaries) 
     under procedures prescribed by the Secretary.''.
       (2) Reporting.--Subsection (d) of section 6049 of such Code 
     (relating to returns regarding payments of interest) is 
     amended by adding at the end the following new paragraph:
       ``(9) Reporting of credit on qualified tax credit bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54A and such amounts shall be treated as paid on the 
     credit allowance date (as defined in section 54A(e)(1)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A) of this paragraph, subsection 
     (b)(4) of this section shall be applied without regard to 
     subparagraphs (A), (H), (I), (J), (K), and (L)(i).
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (3) Other conforming amendments related to tax credit 
     bonds.--
       (A) Sections 54(c)(2) and 1400N(l)(3)(B) of such Code are 
     each amended by striking ``subpart C'' and inserting 
     ``subparts C and I''.
       (B) Section 1397E(c)(2) of such Code is amended by striking 
     ``subpart H'' and inserting ``subparts H and I''.
       (C) Section 6401(b)(1) of such Code is amended by striking 
     ``and H'' and inserting ``H, and I''.
       (D) The heading of subpart H of part IV of subchapter A of 
     chapter 1 of such Code is amended by striking ``Certain 
     Bonds'' and inserting ``Clean Renewable Energy Bonds''.
       (E) The table of subparts for part IV of subchapter A of 
     chapter 1 of such Code is amended by striking the item 
     relating to subpart H and inserting the following new items:

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

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

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

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

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

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

       (a) In General.--Paragraphs (5)(D) and (6) of section 
     864(f) of the Internal Revenue Code of 1986 are each amended 
     by striking ``December 31, 2008'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

        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.''.

[[Page 28873]]

       (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 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

[[Page 28874]]

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 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

[[Page 28875]]

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 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

[[Page 28876]]

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 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. 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,

[[Page 28877]]

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. 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 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

[[Page 28878]]

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 2 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.
       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.

[[Page 28879]]

       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.''


                         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.

[[Page 28880]]

       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 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

[[Page 28881]]

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 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. 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

[[Page 28882]]

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. 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 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 8 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

[[Page 28883]]

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. 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- 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

[[Page 28884]]

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, 1 out of 7 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. 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.

[[Page 28885]]

  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. 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.
  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.

[[Page 28886]]

  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 
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

[[Page 28887]]

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.
  Ms. SOLIS. Mr. Speaker, I rise today in strong support of H.R. 3920, 
the Trade and Globalization Assistance Act of 2007. This bill will 
provide American workers displaced by globalization and trade policy 
with the necessary tools and assurance to compete in the global 
economy.
  Created in 1962, the Trade Adjustment Assistance (TAA) program offers 
trade-displaced workers up to two years of job training and income 
support while they transition to different jobs often in new sectors. 
Unfortunately, for too long, thousands of our workers have been denied 
services they are otherwise eligible to receive because of a lack of 
funding or restrictive interpretations of current law. H.R. 3920 
bridges this gap, by not only doubling training funds to $440 million 
but also by providing states with funds for vital outreach to ensure 
that our workers are not lost or forgotten in this increasing global 
age. Eighty percent of all workers in the United States work in the 
service sector industry and I am proud that for the first time they 
will be fully eligible for coverage through this legislation.
  H.R. 3920 also intends to protect our most vulnerable workers--women 
and minorities. While Latinos represent 12.6 percent of the total U.S. 
workforce, they account for 26 percent of textile and apparel industry 
workers. In California, Latinos make up an estimated 80 percent of the 
California garment industry, which has been especially hard-hit by 
NAFTA's impact. As a result, Latino workers have been significantly 
hurt by poorly crafted trade policy. According to the Department of 
Labor, 47 percent of individuals that applied for NAFTA's TAA program 
due to lay offs were Latino.
  Unfortunately, President Bush is threatening to veto this 
legislation, continuing his policy of favoring wealthy Americans over 
middle-class workers. I believe that it is well past time to 
acknowledge the hard fact that trade policy has had a negative impact 
on our nation's workers and it is our job to give them the support they 
need to be active members of our workforce. I urge my colleagues to 
support this legislation, so we can provide displaced workers with the 
tools and resources necessary to compete in the 21st century, and I 
urge President Bush to reconsider his callous threat and stand with us 
to support American workers and American jobs.
  Mr. AL GREEN of Texas. Mr. Speaker, I support H.R. 3920, The Trade 
and Globalization Assistance Act of 2007. H.R. 3920 would expand the 
Trade Adjustment Assistance program, which assists workers who lose 
their jobs because of foreign trade. Trade Adjustment Assistance, TAA, 
was first established in 1962, in recognition of the fact that some 
workers would lose their jobs as a direct result of our national trade 
policies. The program is designed to assist these trade-dislocated 
workers by providing them with the opportunity to train for new 
careers. Although the program currently includes about 80,000 certified 
workers enrolled in training, there are thousands of other trade-
displaced workers who deserve but have been unable to obtain training 
through the TAA program.
  H.R. 3920 makes many long-sought improvements to TAA. The bill allows 
for industry-wide certification in certain instances, a change that 
will eliminate the delays and inconsistent results in the current firm-
by-firm process. The bill also includes a number of changes that will 
simplify and improve the process by which eligible workers obtain 
training.
  We must continue to provide our strong support to workers who are 
faced with the unfortunate event of losing their employment. H.R. 3920 
is an excellent bill that will provide much needed and overdue help to 
displaced and unemployed workers. These programs are essential to the 
viability and livelihood of thousands of hard-working Americans. As a 
proud supporter of America's workers, I understand the vital importance 
of ensuring the social welfare of our labor force. I will continue to 
work with my colleagues to preserve their social and economic care. 
America's workers deserve America's support.
  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.

[[Page 28888]]

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.
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

[[Page 28889]]

     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 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''.

[[Page 28890]]



    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. 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

[[Page 28891]]

     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 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

[[Page 28892]]

     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).
       ``(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

[[Page 28893]]

     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 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

[[Page 28894]]

       ``(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 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

[[Page 28895]]

     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.
       ``(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

[[Page 28896]]

     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 (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

[[Page 28897]]

     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)'';
       (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

[[Page 28898]]

     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:
       ``(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

[[Page 28899]]

     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)'';
       (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

[[Page 28900]]

     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 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

[[Page 28901]]

     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 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

[[Page 28902]]

     (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 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.--

[[Page 28903]]

       ``(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 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

[[Page 28904]]

     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 
     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:

[[Page 28905]]

       ``(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 
     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;

[[Page 28906]]

       ``(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;

       ``(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;

[[Page 28907]]

       ``(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;
       ``(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--

[[Page 28908]]

       (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--
       ``(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.);

[[Page 28909]]

       ``(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;
       ``(v) the extent of collaboration with the State and local 
     workforce investment systems in carrying out the proposed 
     activities;

[[Page 28910]]

       ``(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

[[Page 28911]]

     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 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,''.

[[Page 28912]]



     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.
       ``(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--

[[Page 28913]]

       ``(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);
       ``(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

[[Page 28914]]

     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;
       ``(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;

[[Page 28915]]

       ``(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;
       ``(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

[[Page 28916]]

     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.
       ``(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-

[[Page 28917]]

     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 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

[[Page 28918]]

       ``(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.

                     ``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.

[[Page 28919]]

       ``(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').
       ``(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.

[[Page 28920]]

       ``(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.
       ``(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);

[[Page 28921]]

       ``(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;
       ``(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

[[Page 28922]]

       (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;''.
       (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.''.

[[Page 28923]]



     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.
  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

[[Page 28924]]

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 
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

[[Page 28925]]

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.
  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

[[Page 28926]]

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 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

[[Page 28927]]

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. 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, 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 2 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

[[Page 28928]]

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.
  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

[[Page 28929]]

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. 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 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.

[[Page 28930]]


  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 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

[[Page 28931]]

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

                             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

[[Page 28932]]

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.
  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

[[Page 28933]]


     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.

                          ____________________