‘‘(3) PROCESS AND METHODS FOR OBTAINING 
CERTIFICATIONS.— 
‘‘(A) REQUEST
BY
PETITIONER.—If re-
quested by the petitioner, the Secretary shall 
obtain the certifications under paragraphs (1) 
and (2) in such manner as the Secretary deter-
mines is appropriate, including by issuing sub-
poenas under section 249 when necessary. 
‘‘(B) PROTECTION OF CONFIDENTIAL IN-
FORMATION.—The Secretary may not release 
information obtained under subparagraph (A) 
that the Secretary considers to be confidential 
business information unless the party submit-
ting the confidential business information had 
notice, at the time of submission, that such in-
formation would be released by the Secretary, 
or such party subsequently consents to the re-
lease of the information. Nothing in this sub-
paragraph shall be construed to prohibit a court 
from requiring the submission of such confiden-
tial business information to the court in cam-
era.’’. 
(c) DEFINITIONS.—Section 247 of the Trade Act of 
1974 (19 U.S.C. 2319) is amended— 
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(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 ‘‘employ-
ment—’’ and all that follows and inserting ‘‘employ-
ment 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 fol-
lowing: 
‘‘(7) The term ‘public agency’ means a depart-
ment 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.’’. 
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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 ap-
plication’’ 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 Sec-
retary’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 Sec-
retary’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 in-
serting ‘‘(a) MONITORING
PROGRAMS.—The 
Secretary’’; 
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(B) by inserting ‘‘and services’’ after ‘‘im-
ports 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 serv-
ices,’’ after ‘‘changes in production’’; and 
(3) by adding at the end the following: 
‘‘(b) COLLECTION OF DATA AND REPORTS ON SERV-
ICE 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 Sec-
retary of Commerce shall, in consultation with the 
Secretary of Labor, conduct a study and report to 
Congress on ways to improve the timeliness and cov-
erage of data on trade in services, including methods 
to identify increased imports due to the relocation of 
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United States firms to foreign countries, and in-
creased imports due to United States firms obtain-
ing 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 strik-
ing the item relating to section 282 and inserting the fol-
lowing: 
‘‘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 in-
dustry, 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 
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‘‘(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 certifi-
cation of workers in a domestic industry described in 
subsection (a), as the case may be— 
‘‘(A) determine whether all adversely af-
fected workers in that domestic industry are eli-
gible to apply for assistance under this sub-
chapter, in accordance with the criteria estab-
lished under subsection (e); or 
‘‘(B) determine whether all adversely af-
fected workers in that domestic industry in a 
specific geographic region are eligible to apply 
for assistance under this subchapter, in accord-
ance with the criteria established under sub-
section (e). 
‘‘(c) IDENTIFICATION AND CERTIFICATION.— 
‘‘(1) AFFIRMATIVE DETERMINATION.— 
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quest 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 pre-
cedes one year before the date on 
which the Secretary certifies the 3d 
such petition. 
‘‘(ii) 
INAPPLICABILITY.—A 
certifi-
cation 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 Sec-
retary makes a negative determination under sub-
section (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 deter-
mination under subsection (b), the Secretary shall 
promptly publish a summary of the determination in 
the Federal Register and on the Website of the De-
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partment 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 ter-
mination 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 oc-
curring 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 mak-
ing determinations under this section, including criteria 
for making such determinations. The Secretary shall de-
velop such regulations in consultation with the Committee 
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on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate, and the Sec-
retary shall submit such regulations to each such com-
mittee at least 60 days before the regulations go into ef-
fect. 
‘‘(f) DOMESTIC INDUSTRY DEFINED.—In this sec-
tion, 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 insert-
ing 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 ‘‘sub-
chapter A of this chapter’’ and inserting 
‘‘this subchapter’’; and 
(ii) in paragraph (2), by striking 
‘‘subchapter A’’ and inserting ‘‘this sub-
chapter’’; and 
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(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 cer-
tification’’; and 
(ii) in paragraph (1)— 
(I) in subparagraph (B), by in-
serting ‘‘or 223A (as the case may 
be)’’ after ‘‘223’’; and 
(II) in subparagraph (C), by in-
serting ‘‘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 subpara-
graphs (A) and (B) as paragraph (1) 
and (2), respectively; 
(III) by redesignating clauses (i) 
and (ii) as subparagraphs (A) and 
(B), respectively; and 
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(IV) by redesignating subclauses 
(I) and (II) as clauses (i) and (ii), re-
spectively. 
SEC. 112. NOTIFICATIONS REGARDING AFFIRMATIVE DE-
TERMINATIONS 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 RE-
GARDING 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 Reg-
ister’’; and 
(4) by adding at the end the following: 
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‘‘(c) 
NOTIFICATIONS
REGARDING
AFFIRMATIVE 
SAFEGUARD DETERMINATIONS UNDER SECTION 202.— 
Upon issuing an affirmative finding regarding serious in-
jury, 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 DE-
TERMINATIONS 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 DE-
TERMINATIONS 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)— 
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‘‘(1) the Secretary shall— 
‘‘(A) notify the firms identified by the 
Commission as comprising the domestic indus-
try affected, and any certified or recognized 
union or other duly authorized representatives 
of the workers in such industry, of the allow-
ances, training, employment services, and other 
benefits available under this chapter, and the 
procedures under this chapter for filing peti-
tions and applying for benefits; 
‘‘(B) notify the Governor of each State in 
which one or more firms described in subpara-
graph (A) are located of the Commission’s de-
termination 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 indus-
try affected of the benefits under chapter 3 and 
the procedures under such chapter for filing pe-
titions and applying for benefits; and 
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‘‘(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 strik-
ing the item relating to section 224 and inserting the fol-
lowing: 
‘‘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 Com-
merce 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 employ-
ment 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 per-
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manently residing in the United States under color of 
law.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents 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 amend-
ed— 
(1) by striking subclauses (I) and (II) and in-
serting the following: 
‘‘(I) in the case of a worker whose 
most recent total separation from adversely 
affected employment that meets the re-
quirements of paragraphs (1) and (2) oc-
curs 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 re-
quirements of paragraphs (1) and (2) oc-
curs before the date on which the Sec-
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retary 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 sub-
clause (V); and 
(4) by inserting after subclause (III) the fol-
lowing: 
‘‘(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.—Sub-
section (c) of such section 231 is amended— 
(1) in paragraph (1)(B)— 
(A) by striking ‘‘The worker possesses’’ 
and inserting 
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‘‘(i) IN GENERAL.—The worker pos-
sesses’’; 
(B) by moving the remaining text 2 ems to 
the right; and 
(C) by adding at the end the following: 
‘‘(ii) 
MARKETABLE
SKILLS
DE-
FINED.—For purposes of clause (i), the 
term ‘marketable skills’ may include the 
possession of a postgraduate degree from 
an institution of higher education (as de-
fined in section 101(a) of the Higher Edu-
cation Act of 1965) or equivalent foreign 
institution, or the possession of an equiva-
lent postgraduate certification in a special-
ized 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 
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months after the date on which the waiver is 
issued, except that the State, upon reviewing 
the waiver, may extend the waiver for an addi-
tional period of not more than 3 months if the 
State determines that the waiver should be 
maintained.’’. 
(c) DETERMINATIONS OF ELIGIBILITY BY STATE EM-
PLOYEES 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 deter-
minations 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 strik-
ing 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)’’; 
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(B) by striking ‘‘total unemployment’’ the 
first place it appears and inserting ‘‘unemploy-
ment’’; 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 pre-
ceding the worker’s first exhaustion of unem-
ployment 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 fol-
lowing: 
‘‘(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 
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231(a), then for any week for which unemployment insur-
ance 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 ben-
efit 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)’’. 
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SEC. 123. LIMITATIONS ON TRADE READJUSTMENT ALLOW-
ANCES; ALLOWANCES FOR EXTENDED TRAIN-
ING 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 para-
graph (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 insert-
ing ‘‘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 ELIGI-
BILITY 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 SEPARA-
TION.—Notwithstanding any other provision of this chap-
ter, any period during which a judicial or administrative 
appeal is pending with respect to the denial by the Sec-
retary of a petition under section 223 shall not be counted 
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for purposes of calculating the period of separation under 
subsection (a)(2) or for purposes of calculating time peri-
ods specified in section 231(a)(5)(A). 
‘‘(h) SPECIAL RULE FOR JUSTIFIABLE CAUSE.—The 
Secretary may extend the periods during which trade read-
justment 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 work-
er with timely information, delays in certification due to 
administrative reconsideration or judicial review, or justifi-
able 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 LIM-
ITS 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 incon-
sistent’’; and 
(2) by adding at the end the following: 
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‘‘(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 limi-
tation referred to or specified in this chapter or any regu-
lation prescribed to carry out this chapter.’’. 
SEC. 126. EMPLOYMENT AND CASE MANAGEMENT SERV-
ICES. 
(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 SERV-
ICES. 
‘‘The Secretary shall provide, directly or through 
agreements with States under section 239, to adversely 
affected workers covered by a certification under sub-
chapter A of this chapter the following employment and 
case management services: 
‘‘(1) Comprehensive and specialized assessment 
of skill levels and service needs, including through— 
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‘‘(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 coun-
seling to determine which training is suitable train-
ing, and information on how to apply for such train-
ing. 
‘‘(4) Information on how to apply for financial 
aid, including referring workers to educational op-
portunity centers under section 402F of the Higher 
Education Act of 1965, where applicable, and noti-
fying workers that the workers may ask financial aid 
administrators at institutions of higher education to 
allow use of their current year income in the finan-
cial aid process. 
‘‘(5) Short-term prevocational services, includ-
ing development of learning skills, communications 
skills, interviewing skills, punctuality, personal main-
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tenance 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 adjust-
ment allowance or training under this chapter, and 
for purposes of job placement after receiving such 
training. 
‘‘(7) Provision of employment statistics infor-
mation, including the provision of accurate informa-
tion 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 occupa-
tions that are in demand and earnings potential 
of such occupations; and 
‘‘(D) skills requirements for local occupa-
tions described in subparagraph (C). 
‘‘(8) Supportive services, including services re-
lating to child care, transportation, dependent care, 
housing assistance, and need-related payments that 
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‘‘(IV) notifications under the Worker Ad-
justment 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.—Sub-
section (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: 
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‘‘(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 pe-
riod longer than the worker’s period of eligibility for trade 
readjustment allowances under part I if the worker dem-
onstrates that the worker has sufficient financial resources 
to complete the training after the expiration of the work-
er’s period of eligibility for such trade readjustment allow-
ances. 
‘‘(ii) In determining the reasonable cost of training 
under paragraph (1)(F) with respect to a worker, the Sec-
retary 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 fol-
lowing: 
‘‘(e) DETERMINATIONS OF ELIGIBILITY BY STATE 
EMPLOYEES APPOINTED ON MERIT BASIS.—All deter-
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minations 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 proce-
dures 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 Sec-
retary of Labor pursuant to such section. In car-
rying 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 
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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 de-
scribed in paragraph (1) are implemented. 
SEC. 128. PREREQUISITE EDUCATION; APPROVED TRAIN-
ING 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 fol-
lowing: 
‘‘(iii) apprenticeship programs registered 
under the National Apprenticeship Act (29 
U.S.C. 50 et seq.),’’; 
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(2) by redesignating subparagraphs (E) and 
(F) as subparagraphs (F) and (G), respectively; 
(3) by inserting after subparagraph (D) the fol-
lowing: 
‘‘(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 ac-
credited institution of higher education. 
The Secretary may not limit approval of a training pro-
gram under paragraph (1) to a program provided pursu-
ant to title I of the Workforce Investment Act of 1998.’’. 
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(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 ‘‘pre-
requisite education or’’ after ‘‘requires a program 
of’’; and 
(2) in subsection (f) (as redesignated by section 
121(d) of this Act), by inserting ‘‘prerequisite edu-
cation or’’ after ‘‘includes a program of’’. 
SEC. 129. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE 
AND PROGRAM BENEFITS WHILE IN TRAIN-
ING. 
(a) IN GENERAL.—Section 236(d) of the Trade Act 
of 1974 (19 U.S.C. 2296(d)) is amended to read as fol-
lows: 
‘‘(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 
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training or a delay in the commencement 
of such training; or 
‘‘(2) because the provisions of State law or Fed-
eral unemployment insurance law relating to avail-
ability 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 sec-
tion 121(d) of this Act), by inserting ‘‘suitable’’ be-
fore ‘‘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 pur-
poses of this section, the term ‘suitable on-the-job train-
ing’ 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— 
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‘‘(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 chap-
ter 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 fol-
lowing: 
‘‘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. 
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‘‘(2) USE OF FUNDS.—A State that receives an 
additional payment under paragraph (1) shall use 
the payment for administration of the trade adjust-
ment assistance for workers program under this 
chapter, including for— 
‘‘(A) processing of waivers of training re-
quirements 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 pro-
vided to the State for administration of the trade 
adjustment assistance for workers program under 
this chapter for fiscal year 2007 may only be admin-
istered 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 
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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 con-
tained 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 insert-
ing 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)— 
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(A) in paragraph (1), by striking ‘‘90 per-
cent 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 per-
cent 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’’. 
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(b) TAA RECIPIENTS RECEIVING UNEMPLOYMENT 
COMPENSATION AND NOT ENROLLED IN TRAINING PRO-
GRAM ELIGIBLE FOR CREDIT.—Paragraph (2) of section 
35(c) of such Code is amended to read as follows: 
‘‘(2) ELIGIBLE TAA RECIPIENT.—The term ‘eli-
gible 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 com-
pensation (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 eli-
gible 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 EMPLOY-
MENT.—Subsection (c) of section 35 of such Code is 
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taken into account with respect to such in-
dividual.’’. 
(e) MODIFICATION OF CREDITABLE COVERAGE RE-
QUIREMENT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
35(e)(2) of such Code is amended to read as follows: 
‘‘(B) QUALIFYING INDIVIDUAL.—For pur-
poses of this paragraph, the term ‘qualifying in-
dividual’ 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 re-
cipient or an eligible alternative TAA re-
cipient, 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 cred-
itable 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— 
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‘‘(I) the last day of the first 
month with respect to which such re-
cipient 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 in-
dividual 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 Rev-
enue Code of 1986 and— 
‘‘(I) in the case of an eligible 
TAA recipient or an eligible alter-
native TAA recipient, has (as of the 
date on which the individual seeks to 
enroll in the coverage described in 
clauses (ii) through (viii) of subpara-
graph (A)) a period of creditable cov-
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erage (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 pe-
riod 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 enact-
ment of this clause.’’. 
(3) OUTREACH.—The Secretary of the Treas-
ury shall carry out a program to notify individuals 
prior to their becoming eligible PBGC pension re-
cipients (as defined in section 35 of the Internal 
Revenue Code of 1986) of the requirement of sub-
section (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 cred-
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itable 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 indi-
vidual, 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 no-
tice 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 cer-
tificate 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: 
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‘‘(C) TAA-ELIGIBLE INDIVIDUALS.— 
‘‘(i) TAA PRE-CERTIFICATION PERIOD 
RULE.—In the case of a TAA-eligible indi-
vidual, 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 enti-
ty 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 Inter-
nal Revenue Code of 1986 shall not be 
taken into account in determining the con-
tinuous 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.— 
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‘‘(i) TAA PRE-CERTIFICATION PERIOD 
RULE.—In the case of a TAA-eligible indi-
vidual, 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 enti-
ty 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 Inter-
nal Revenue Code of 1986 shall not be 
taken into account in determining the con-
tinuous 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
REQUIRE-
MENT.—In the case of coverage described 
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(1) IN
GENERAL.—Except as otherwise pro-
vided 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 pay-
ment 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. 
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(2) REPORT.—Not later than March 1, 2009, 
the Comptroller General shall submit a report to 
Congress regarding the results of the study con-
ducted under paragraph (1). Such report shall in-
clude an analysis of— 
(A) the administrative costs— 
(i) of the Federal Government with 
respect to such credit and the advance pay-
ment of such credit under section 7527 of 
such Code, and 
(ii) of providers of qualified health in-
surance with respect to providing such in-
surance to eligible individuals and their 
qualifying family members, 
(B) the health status and relative risk sta-
tus of eligible individuals and qualifying family 
members covered under such insurance, 
(C) participation in such credit and the ad-
vance payment of such credit by eligible individ-
uals and their qualifying family members, in-
cluding the reasons why such individuals did or 
did not participate and the effect of the amend-
ments made by this section on such participa-
tion, and 
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(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 cov-
erage. 
(3) ACCESS
TO
RECORDS.—For purposes of 
conducting the study required under this subsection, 
the Comptroller General and any of his duly author-
ized 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 pro-
viders 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 iden-
tity of any provider of qualified health insurance or 
any eligible individual in making any information ob-
tained 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 sub-
section. 
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Subtitle E—Wage Insurance 
SEC. 151. REEMPLOYMENT TRADE ADJUSTMENT ASSIST-
ANCE 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
AS-
SISTANCE’’; 
(2) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘alter-
native’’ 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 ad-
justment assistance under subchapter A is eligi-
ble for benefits described in paragraph (2) 
under the program established under paragraph 
(1). 
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‘‘(B) INDIVIDUAL ELIGIBILITY.—A worker 
in a group of workers described in subpara-
graph (A) may elect to receive benefits de-
scribed in paragraph (2) under the program es-
tablished 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 ap-
proved under section 236; and 
‘‘(iv) does not return to the employ-
ment from which the worker was sepa-
rated. 
In the case of a worker described in clause 
(iii)(II), the percentage referred to in para-
graph (2)(A) shall be deemed to be a percent-
age 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). 
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‘‘(C) 
ELIGIBILITY
PERIOD
FOR
PAY-
MENTS.—A worker in a group of workers de-
scribed in subparagraph (A) may receive pay-
ments 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 unem-
ployment insurance based on the separation of 
the worker from adversely affected employment 
or the date on which the worker obtains reem-
ployment, 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 pay-
ments 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 sub-
chapter B during any week for which the worker re-
ceives a payment described in paragraph (2)(A).’’; 
and 
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(2) by striking paragraph (4) and inserting the 
following: 
‘‘(4) perform outreach, intake (which may in-
clude worker profiling) and orientation for assistance 
and benefits available under this chapter for ad-
versely 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 de-
scribed 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 insert-
ing ‘‘would cause a financial hardship for the indi-
vidual (or the individual’s household, if applicable) 
when taking into consideration the income and re-
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sources 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 in-
serting ‘‘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 
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of Trade Adjustment Assistance (hereinafter in this sec-
tion 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 func-
tions of the Deputy Assistant Secretary shall be— 
‘‘(1) to oversee and implement the administra-
tion 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 pro-
gram 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 certifi-
cation receive the employment services de-
scribed in section 235; 
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‘‘(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 insert-
ing 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; INFORMA-
TION 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: 
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‘‘SEC. 250A. COLLECTION OF DATA AND REPORTS; INFOR-
MATION TO WORKERS. 
‘‘(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of the Trade and Globalization Act 
of 2007, the Secretary shall implement a system to collect 
and publicly disseminate data on all adversely affected 
workers who apply for or receive adjustment assistance 
under this chapter. 
‘‘(b) DATA TO BE INCLUDED.—The system required 
under subsection (a) shall include collection of the fol-
lowing data classified by State, industry, and nationwide 
totals: 
‘‘(1) The number of petitions and number of 
workers covered by petitions filed, certified and de-
nied. 
‘‘(2) The date of filing of each petition and the 
date of the determination, and the average proc-
essing time, by year, on petitions. 
‘‘(3) A breakdown, by the claimed cause of dis-
location, of petitions denied, such as increased im-
ports, shift in production, and other bases for eligi-
bility. 
‘‘(4) A breakdown of the number of certified 
petitions by the cause of dislocation, such as in-
crease in imports, shift in production, and other 
causes of eligibility for adjustment assistance. 
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‘‘(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 receiv-
ing adjustment assistance under this chapter. 
‘‘(7) The type of adjustment assistance received 
under this chapter, such as training or education as-
sistance, reemployment adjustment assistance, cash 
benefits, health coverage, and relocation allowances, 
the number of workers receiving each type of assist-
ance, and the average duration of time workers re-
ceive each type of assistance. 
‘‘(8) The fields of training or education in 
which workers receiving training or education bene-
fits 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 
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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 sub-
mit to the Committee on Ways and Means of the House 
of Representatives, the Committee on Finance of the Sen-
ate, and any other congressional committee of appropriate 
jurisdiction, a report on whether changes to eligibility re-
quirements, 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 DEPART-
MENT OF LABOR.—The Secretary shall make the data col-
lected under subsection (b) publicly available on the 
website of the Department of Labor, in a searchable for-
mat, 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 insert-
ing 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.’’. 
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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 ‘‘De-
cember 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 ‘‘De-
cember 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 appro-
priated 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 fol-
lows: 
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‘‘(b) STANDARD OF REVIEW.—The Court of Inter-
national 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 Sec-
retary of Commerce, or the Secretary of Agriculture, as 
the case may be, must be supported by substantial evi-
dence 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 Sec-
retary 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 pro-
ceedings. 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 sen-
tence. 
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 add-
ing at the end the following: 
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‘‘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 lib-
erally construed in favor of certifying workers for assist-
ance under such chapter 2 and certifying firms for assist-
ance under such chapter 3.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for title II of the Trade Act of 1974 is amended by insert-
ing 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 subpara-
graph (A), by inserting ‘‘or service sector 
firm’’ after ‘‘any agricultural firm’’; and 
(ii) in subparagraph (B)— 
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(I) in clause (i), by striking ‘‘, 
or’’ and inserting a comma; 
(II) in clause (ii)— 
(aa) by inserting ‘‘or serv-
ice’’ 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 abso-
lutely, or 
‘‘(iv) sales or production, or both, of 
an article or service that accounted for not 
less than 25 percent of the total produc-
tion or sales of the firm during the 36- 
month period preceding the most recent 
12-month period for which data are avail-
able have decreased absolutely, and’’; and 
(B) in the matter preceding subparagraph 
(A) of paragraph (2) , by striking ‘‘paragraph 
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(1)(C)—’’ and inserting ‘‘paragraph (1)(C):’’; 
and 
(3) by adding at the end the following: 
‘‘(e) BASIS FOR THE DETERMINATION OF THE SEC-
RETARY.— 
‘‘(1) INCREASED
IMPORTS.—For purposes of 
subsection (c)(1)(C), the Secretary— 
‘‘(A) may use data from any of the pre-
ceding three calendar years to determine if the 
requirements of such subsection have been met; 
and 
‘‘(B) may determine that increases of im-
ports of like or directly competitive articles or 
services exist if customers accounting for a sig-
nificant 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 re-
quested by a firm, the Secretary shall obtain 
the certifications under paragraph (1)(B) in 
such manner as the Secretary determines is ap-
propriate. 
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‘‘(B) PROTECTION OF CONFIDENTIAL IN-
FORMATION.—The Secretary may not release 
information obtained under subparagraph (A) 
that the Secretary considers to be confidential 
business information unless the party submit-
ting the confidential business information had 
notice, at the time of submission, that such in-
formation would be released by the Secretary, 
or such party subsequently consents to the re-
lease of the information. Nothing in this sub-
paragraph shall be construed to prohibit a court 
from requiring the submission of such confiden-
tial business information to the court in cam-
era. 
‘‘(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 sec-
tion 223 or 223A, the Secretary of Commerce shall notify 
such firm or firms of the availability of adjustment assist-
ance 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 
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(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 en-
gaged in the business of providing services.’’. 
SEC. 202. EXTENSION OF AUTHORIZATION OF TRADE AD-
JUSTMENT 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,’’ insert-
ing ‘‘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 fol-
lowing: ‘‘Of the amounts appropriated pursuant to 
this subsection for each fiscal year, $350,000 shall 
be available for full-time positions in the Depart-
ment of Commerce to administer the program under 
this chapter.’’. 
SEC. 203. INDUSTRY-WIDE PROGRAMS FOR THE DEVELOP-
MENT OF NEW SERVICES. 
Section 265(a) of the Trade Act of 1974 (19 U.S.C. 
2355(a)) is amended— 
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(1) in the first sentence, by striking ‘‘new prod-
uct 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 Insur-
ance 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 Sec-
retary of Labor shall provide for the making of unemploy-
ment 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 unem-
ployment account, in accordance with succeeding provi-
sions of this subsection. 
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‘‘(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 ac-
count of such State upon a certification under para-
graph (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 eligi-
bility for unemployment compensation; or 
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‘‘(B) provides that, in the case of an individual 
who would not otherwise be eligible for unemploy-
ment 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 deter-
mined using a base period that includes such cal-
endar 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 be-
cause such individual is seeking only part-time (and 
not full-time) work, except that the State law provi-
sions 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 sepa-
rating from employment if that separation is for 
compelling family reasons. For purposes of this sub-
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paragraph, the term ‘compelling family reasons’ in-
cludes at least the following: 
‘‘(i) Domestic violence (verified by such 
reasonable and confidential documentation as 
the State law may require) which causes the in-
dividual reasonably to believe that such individ-
ual’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 accom-
pany such individual’s spouse— 
‘‘(I) to a place from which it is im-
practical 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 unem-
ployment compensation under the State law, and is 
enrolled and making satisfactory progress in a 
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‘‘(i) the administration of the provisions of 
its State law carrying out the purposes of sub-
section (f)(2) or any subparagraph of sub-
section (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 adminis-
tration 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). 
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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 in-
serting ‘‘2012’’, and 
(2) by striking ‘‘2008’’ in paragraph (2) and in-
serting ‘‘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 REDE-
VELOPMENT ZONES. 
‘‘(a) IN GENERAL.—From among the areas nomi-
nated for designation under this section, the Secretary 
may designate manufacturing redevelopment zones. 
‘‘(b) LIMITATIONS
ON DESIGNATIONS.—The Sec-
retary may designate in the aggregate 24 nominated areas 
as manufacturing redevelopment zones, subject to the 
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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 des-
ignation 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 EF-
FECT.— 
‘‘(1) IN GENERAL.—Any designation under this 
section shall remain in effect during the period be-
ginning 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 designa-
tion, 
‘‘(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 Sec-
retary may revoke the designation under this section 
of an area if such Secretary determines that the 
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local government or the State in which it is lo-
cated— 
‘‘(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 in-
cluded with the application 
‘‘(e) LIMITATIONS
ON
DESIGNATIONS; APPLICA-
TION.—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 deter-
mination 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 eligi-
ble 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 sig-
nificant decline in the number of individuals em-
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ployed in manufacturing or has a high concentration 
of abandoned or underutilized manufacturing facili-
ties, and 
‘‘(3) no portion of the nominated area is located 
in an empowerment zone or renewal community, un-
less the local government which nominated the area 
elects to terminate such designation as an empower-
ment zone or renewal community. 
‘‘(b) APPLICATION
OF CERTAIN RULES; DEFINI-
TIONS.—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 sub-
chapter. 
‘‘(c) DISCRETION TO ADJUST REQUIREMENTS.—In 
determining whether a nominated area is eligible for des-
ignation as a manufacturing redevelopment zone, the Sec-
retary 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. 
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100 
‘‘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 pro-
ceeds 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 DES-
IGNATED.—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 ‘quali-
fied manufacturing redevelopment purposes’ means capital 
expenditures paid or incurred with respect to property lo-
cated in a manufacturing redevelopment zone for purposes 
of promoting development or other economic activity in 
such zone, including expenditures for environmental reme-
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101 
diation, improvements to public infrastructure, and con-
struction 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 sec-
tion 54A. 
‘‘SEC. 1400U–4. TAX-EXEMPT MANUFACTURING ZONE FACIL-
ITY BONDS. 
‘‘(a) IN GENERAL.—For purposes of part IV of sub-
chapter B (relating to tax exemption requirements for 
State and local bonds), the term ‘exempt facility bond’ in-
cludes 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 DES-
IGNATED.— 
‘‘(1) IN GENERAL.—The aggregate face amount 
of bonds which may be designated under subsection 
(a)(2) with respect to any manufacturing redevelop-
ment zone shall not exceed $230,000,000. 
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102 
‘‘(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 des-
ignated 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 out-
standing manufacturing zone facility bonds allocable 
to any person (taking into account such issue) ex-
ceeds— 
‘‘(A) $15,000,000 with respect to any 1 
manufacturing redevelopment zone, or 
‘‘(B) $20,000,000 with respect to all man-
ufacturing redevelopment zones. 
‘‘(2) AGGREGATE ENTERPRISE ZONE FACILITY 
BOND
BENEFIT.—For purposes of paragraph (1), 
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103 
the aggregate amount of outstanding manufacturing 
zone facility bonds allocable to any person shall be 
determined under rules similar to the rules of sec-
tion 144(a)(10), taking into account only bonds to 
which subsection (a) applies. 
‘‘(d) MANUFACTURING ZONE PROPERTY.—For pur-
poses 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 designa-
tion of the manufacturing redevelopment zone 
took effect, 
‘‘(B) the original use of which in the man-
ufacturing 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 ‘quali-
fied business’ means any trade or business except 
that— 
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104 
‘‘(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 REN-
OVATIONS 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.—Sec-
tions 57(a)(5) (relating to tax-exempt interest), 146 (re-
lating 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 CRED-
ITS. 
‘‘(a) IN GENERAL.—For purposes of section 42, in 
the case of each calendar year during which the designa-
tion 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— 
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105 
‘‘(1) the aggregate housing credit dollar amount 
allocated by the State housing credit agency of such 
State to buildings located in such manufacturing re-
development zone for such calendar year, or 
‘‘(2) the excess of— 
‘‘(A) the manufacturing zone housing 
amount with respect to such manufacturing re-
development zone, over 
‘‘(B) the aggregate increases under this 
subsection with respect to such zone for all pre-
ceding calendar years. 
‘‘(b) MANUFACTURING ZONE HOUSING AMOUNT.— 
For purposes of subsection (a), the term ‘manufacturing 
zone housing amount’ means, with respect to any manu-
facturing redevelopment zone, the product of $20 multi-
plied 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 ac-
count under subsection (a)(1) is returned within the 
meaning of section 42(h)(3)(C)(iii)— 
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106 
‘‘(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 reallo-
cated.’’. 
(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 ‘‘manufac-
turing redevelopment zone,’’ after ‘‘renewal community,’’. 
(c) CONFORMING AMENDMENTS RELATED TO MANU-
FACTURING 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 CRED-
IT 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 
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107 
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 de-
termined 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 speci-
fied 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 
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108 
day on which there is a binding, written contract for 
the sale or exchange of the bond. 
‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued 
during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined 
under this subsection with respect to such credit al-
lowance 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 im-
posed 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 
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109 
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 be-
fore the application of paragraph (1) for such suc-
ceeding 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 require-
ments of paragraphs (2), (3), (4), (5), and (6). 
‘‘(2) SPECIAL RULES RELATING TO EXPENDI-
TURES.— 
‘‘(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 avail-
able 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 
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110 
such available project proceeds will be in-
curred within the 6-month period begin-
ning on such date of issuance. 
‘‘(B) 
FAILURE
TO
SPEND
REQUIRED 
AMOUNT
OF
BOND
PROCEEDS
WITHIN
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 pe-
riod. 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 ‘expend-
iture 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). 
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‘‘(iii) EXTENSION OF PERIOD.—Upon 
submission of a request prior to the expira-
tion of the expenditure period (determined 
without regard to any extension under this 
clause), the Secretary may extend such pe-
riod if the issuer establishes that the fail-
ure to expend the proceeds within the 
original expenditure period is due to rea-
sonable 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 pur-
pose 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 origi-
nal expenditure, the issuer declared its in-
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113 
vestment of available project proceeds during 
the expenditure period. 
‘‘(C) 
SPECIAL
RULE
FOR
RESERVE 
FUNDS.—An issue shall not be treated as fail-
ing 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 subpara-
graph (B). 
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114 
‘‘(B) MAXIMUM TERM.—During each cal-
endar 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-ex-
empt 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. 
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115 
Such term includes the last day on which the bond 
is outstanding. 
‘‘(2) BOND.—The term ‘bond’ includes any ob-
ligation. 
‘‘(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 in-
come. 
‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the 
case of a tax credit bond held by an S corporation or part-
nership, the allocation of the credit allowed by this section 
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116 
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 in-
vestment 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 regula-
tions prescribed by the Secretary— 
‘‘(1) IN GENERAL.—There may be a separation 
(including at issuance) of the ownership of a quali-
fied 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 al-
lowance date holds the instrument evidencing the en-
titlement 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 
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117 
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 sub-
section (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 regula-
tions, 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 Sec-
retary may prescribe such regulations as are 
necessary or appropriate to carry out the pur-
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poses of this paragraph, including regulations 
which require more frequent or more detailed 
reporting.’’. 
(3) OTHER
CONFORMING
AMENDMENTS
RE-
LATED 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 sub-
part H and inserting the following new items: 
‘‘SUBPART H—NONREFUNDABLE CREDIT TO HOLDERS OF CLEAN RENEWABLE 
ENERGY BONDS 
‘‘SUBPART I—QUALIFIED TAX CREDIT BONDS’’. 
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(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 pro-
vided 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 INTER-
EST ALLOCATION. 
(a) IN GENERAL.—Paragraphs (5)(D) and (6) of sec-
tion 864(f) of the Internal Revenue Code of 1986 are each 
amended by striking ‘‘December 31, 2008’’ and inserting 
‘‘December 31, 2011’’. 
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