SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Trade and Globalization Assistance Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
TITLE I—TRADE ADJUSTMENT ASSISTANCE FOR WORKERS 
Subtitle A—Trade Adjustment Assistance for Service Sector Workers; Expan-
sion of Covered Shifts in Production; Expansion of Downstream Secondary 
Worker Eligibility 
Sec. 101. Extension of trade adjustment assistance to services sector; shifts in 
production. 
Sec. 102. Determinations by Secretary of Labor. 
Sec. 103. Monitoring and reporting relating to service sector. 
Subtitle B—Industry-Wide Trade Adjustment Assistance 
Sec. 111. Industry-wide determinations. 
Sec. 112. Notifications regarding affirmative determinations and safeguards. 
Sec. 113. Notification to Secretary of Commerce. 
Subtitle C—Program Benefits 
Sec. 121. Qualifying requirements for workers. 
Sec. 122. Weekly amounts. 
Sec. 123. Limitations on trade readjustment allowances; allowances for ex-
tended training and breaks in training. 
Sec. 124. Special rules for calculation of eligibility period. 
Sec. 125. Application of State laws and regulations on good cause for waiver 
of time limits or late filing of claims. 
Sec. 126. Employment and case management services. 
Sec. 127. Training. 
Sec. 128. Prerequisite education; approved training programs. 
Sec. 129. Eligibility for unemployment insurance and program benefits while in 
training. 
Sec. 130. Administrative expenses and employment and case management serv-
ices. 
Sec. 131. Job search and relocation allowances. 
Subtitle D—Health Care Provisions 
Sec. 141. Modifications relating health insurance assistance for certain TAA 
and PBGC pension recipients. 
Sec. 142. Extension of COBRA benefits for certain TAA-eligible individuals 
and PBGC recipients. 
Subtitle E—Wage Insurance
Sec. 151. Reemployment trade adjustment assistance program for older work-
ers. 
Subtitle F—Other Matters 
Sec. 161. Restriction on eligibility for program benefits. 
Sec. 162. Agreements with States. 
Sec. 163. Fraud and recovery of overpayments. 
Sec. 164. Technical amendments. 
Sec. 165. Office of Trade Adjustment Assistance; Deputy Assistant Secretary 
for Trade Adjustment Assistance. 
Sec. 166. Collection of data and reports; information to workers. 
Sec. 167. Extension of TAA program. 
Sec. 168. Judicial review. 
Sec. 169. Liberal construction of certification of workers and firms. 
TITLE II—TRADE ADJUSTMENT ASSISTANCE FOR FIRMS 
Sec. 201. Trade adjustment assistance for firms. 
Sec. 202. Extension of authorization of trade adjustment assistance for firms. 
Sec. 203. Industry-wide programs for the development of new services. 
Sec. 204. Demonstration project on strategic trade transformation assistance. 
TITLE III—TRADE ADJUSTMENT ASSISTANCE FOR FARMERS 
Sec. 301. Eligibility of certain other producers. 
TITLE IV—UNEMPLOYMENT INSURANCE 
Sec. 401. Short title. 
Sec. 402. Special transfers to State accounts in the Unemployment Trust 
Fund. 
Sec. 403. Extension of FUTA tax. 
Sec. 404. Safety Net Review Commission. 
TITLE V—MANUFACTURING REDEVELOPMENT ZONES 
Sec. 501. Manufacturing redevelopment zones. 
Sec. 502. Delay in application of worldwide interest allocation. 
TITLE VI—WORKER ADJUSTMENT AND RETRAINING 
NOTIFICATION 
Sec. 601. Short title. 
Sec. 602. Amendments to the WARN Act. 
Sec. 603. Effective date. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) Since January 2001, the United States 
economy has lost nearly 3 million jobs in the manu-
facturing sector alone.
(2) Today, over 7.1 million people in the United 
States are unemployed, and nearly 1.2 million of 
those individuals have been unemployed for 6 
months or longer. 
(3) While the United States manufacturing sec-
tor has been the hardest hit by increased unemploy-
ment, the United States service sector has also seen 
declines as jobs have moved to low-cost labor mar-
kets, such as China, India, and the Philippines. 
(4) Promoting the economic growth and com-
petitiveness of the United States requires— 
(A) opening substantial new markets for 
United States goods, services, and farm prod-
ucts; 
(B) building a strong framework of rules 
for international trade to level the playing field 
for United States workers and businesses in all 
sectors of the economy; and 
(C) helping those affected by globalization 
overcome its challenges and succeed. 
(5) Congress created the trade adjustment as-
sistance program in 1962 to provide United States 
workers who lose their jobs because of foreign com-
petition with government-funded training and associ-
ated income support to enable such workers to tran-
sition to new, good-paying jobs. 
(6) Unfortunately, the trade adjustment assist-
ance program has not kept pace with globalization 
and it is failing to ensure that all workers adversely 
affected by trade receive the assistance they need 
and deserve. 
(7) Workers in the service sector, who make up 
approximately 80 percent of the United States work-
force, are ineligible for trade adjustment assistance. 
(8) Inadequate funding for training leaves 
many dislocated workers without access to the re-
training they need to find good-paying jobs. 
(9) Unnecessary, unduly burdensome, and con-
fusing program eligibility rules prevent workers from 
gaining access to benefits for which they are eligible. 
(10) The health coverage tax credit suffers 
from fundamental flaws and, as a result, the credit 
is not being used by the vast majority of people who 
are eligible for it, despite a clear need for access to 
affordable health care. 
(11) 
To 
meet 
the 
challenges 
posed 
by 
globalization and to preserve the critical role that 
United States workers play in promoting the 
strength and prosperity of the United States, the
trade adjustment assistance program must be re-
formed. 
TITLE I—TRADE ADJUSTMENT 
ASSISTANCE FOR WORKERS 
Subtitle A—Trade Adjustment As-
sistance 
for 
Service 
Sector 
Workers; Expansion of Covered 
Shifts in Production; Expansion 
of 
Downstream 
Secondary 
Worker Eligibility 
SEC. 101. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE 
TO SERVICES SECTOR; SHIFTS IN PRODUC-
TION. 
(a) PETITIONS.—Section 221(a) of the Trade Act of 
1974 (19 U.S.C. 2271(a)(1)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A)— 
(i) by striking ‘‘Secretary’’ and insert-
ing ‘‘Secretary of Labor’’; and 
(ii) by striking ‘‘or subdivision’’ and 
inserting ‘‘or public agency, or subdivision 
of a firm or public agency,’’; and 
(B) in subparagraph (A), by striking 
‘‘firm)’’ and inserting ‘‘firm, and workers in a
service sector firm or subdivision of a service 
sector firm, or of a public agency or subdivision 
thereof)’’; and 
(2) in paragraph (3), by inserting ‘‘and on the 
Website of the Department of Labor’’ after ‘‘Federal 
Register’’. 
(b) GROUP ELIGIBILITY REQUIREMENTS.— 
(1) IN
GENERAL.—Subsection (a) of section 
222 of the Trade Act of 1974 (19 U.S.C. 2272) is 
amended— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘(including workers in any agricul-
tural firm or subdivision of an agricultural 
firm)’’ and inserting ‘‘(other than workers in a 
public agency)’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A)(ii), by strik-
ing ‘‘like or directly competitive with arti-
cles produced’’ and inserting ‘‘or services 
like or directly competitive with articles 
produced or services provided’’; and 
(ii) by striking subparagraph (B) and 
inserting the following: 
‘‘(B)(i) there has been a shift, by such 
workers’ firm or subdivision to a foreign coun-
try, of production of articles, or in provision of 
services, like or directly competitive with arti-
cles produced, or services provided, by such 
firm or subdivision; or 
‘‘(ii) such workers’ firm or subdivision has 
obtained or is likely to obtain articles or serv-
ices described in clause (i) from a foreign coun-
try.’’. 
(2) WORKERS IN PUBLIC AGENCIES.—Such sec-
tion is further amended— 
(A) by redesignating subsections (b) and 
(c) as subsections (c) and (d), respectively; and 
(B) by inserting after subsection (a) the 
following: 
‘‘(b) ADVERSELY AFFECTED WORKERS IN PUBLIC 
AGENCIES.—A group of workers in a public agency shall 
be certified by the Secretary as eligible to apply for adjust-
ment assistance under this chapter pursuant to a petition 
filed under section 221 if the Secretary determines that— 
‘‘(1) a significant number or proportion of the 
workers in the public agency, or an appropriate sub-
division of the public agency, have become totally or 
partially separated, or are threatened to become to-
tally or partially separated; and
‘‘(2) the public agency or subdivision has ob-
tained or is likely to obtain from a foreign country 
services that would otherwise be provided by such 
agency or subdivision.’’. 
(3) ADVERSELY AFFECTED SECONDARY WORK-
ERS.—Subsection (c) of such section (as redesig-
nated by paragraph (2)(A) of this subsection) is 
amended— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘agricultural firm)’’ and inserting 
‘‘agricultural firm, and workers in a service sec-
tor firm or subdivision of a service sector 
firm)’’; 
(B) in paragraph (2)— 
(i) by inserting ‘‘or service’’ after ‘‘re-
lated to the article’’; and 
(ii) by striking ‘‘(c)(3)’’ and inserting 
‘‘(d)(3)’’; and 
(C) in paragraph (3)(A), by striking ‘‘it 
supplied to the firm (or subdivision)’’ and in-
serting ‘‘or services it supplied to the firm (or 
subdivision)’’. 
(4) 
DEFINITIONS
AND
ELIGIBILITY.—Sub-
section (d) of such section (as redesignated by para-
graph (2)(A) of this subsection) is amended—
(A) by striking ‘‘(d) For purposes of this 
section—’’ and inserting ‘‘(d) DEFINITIONS 
AND ELIGIBILITY.—For purposes of this sec-
tion:’’ 
(B) in paragraph (3), to read as follows: 
‘‘(3) DOWNSTREAM
PRODUCER.—The term 
‘downstream producer’ means a firm that performs 
additional, value-added production processes or serv-
ices for a firm or subdivision, including a firm that 
performs final assembly, finishing, testing, pack-
aging, or maintenance or transportation services di-
rectly for another firm (or subdivision), for articles 
or services that were the basis for a certification of 
eligibility under subsection (a) of a group of workers 
employed by such other firm (or subdivision).’’; 
(C) in paragraph (4)— 
(i) by striking ‘‘for articles’’ and in-
serting ‘‘, or services, used in the produc-
tion of articles or in the provision of serv-
ices, as the case may be,’’; and 
(ii) by inserting ‘‘(or subdivision)’’ 
after ‘‘such other firm’’; and 
(D) by adding at the end the following: 
‘‘(5) FIRMS
IDENTIFIED
BY
ITC.—A petition 
filed under section 221 covering a group of workers
from a firm or appropriate subdivision of a firm 
meets the requirements of subsection (a) if the firm 
is identified by the International Trade Commission 
under subsection (c), (d), or (e) of section 224.’’. 
(5) BASIS
FOR
SECRETARY’S
DETERMINA-
TIONS.—Such section is further amended by adding 
at the end the following: 
‘‘(e) BASIS FOR SECRETARY’S DETERMINATIONS.— 
‘‘(1) INCREASED IMPORTS OF SERVICES.—For 
purposes of subsection (a)(2)(A)(ii), the Secretary 
may determine that increased imports of like or di-
rectly competitive services exist if the customers of 
the workers’ firm or subdivision accounting for not 
less than 20 percent of the sales of the workers’ firm 
or subdivision (as the case may be) certify to the 
Secretary that such customers are obtaining such 
services from a foreign country. 
‘‘(2) SHIFT IN PRODUCTION; OBTAINING ARTI-
CLES OR SERVICES ABROAD.—For purposes of sub-
sections (a)(2)(B) and (b)(2), the Secretary may de-
termine that there has been a shift in production of 
articles or provision of services, or that a workers’ 
firm or public agency, or subdivision thereof, has ob-
tained or is likely to obtain like or directly competi-
tive articles or services from a foreign country, based
on a certification thereof from the workers’ firm, 
public agency, or subdivision (as the case may be). 
‘‘(3) PROCESS AND METHODS FOR OBTAINING 
CERTIFICATIONS.— 
‘‘(A) REQUEST
BY
PETITIONER.—If 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— 
(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.’’. 
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)— 
(A) by striking ‘‘subdivision of the firm’’ 
and all that follows through ‘‘he shall’’ and in-
serting ‘‘subdivision of the firm, or of a public 
agency or subdivision of a public agency, that 
total or partial separations from such firm (or 
subdivision) or public agency (or subdivision) 
are no longer attributable to the conditions 
specified in section 222, the Secretary shall’’; 
and
(B) by striking ‘‘together with his reasons’’ 
and inserting ‘‘and on the Website of the De-
partment 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’’; 
(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 Assistance Act of 2007, the Sec-
retary 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 
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 
‘‘(2) all workers in that domestic industry in a 
specific geographic region. 
‘‘(b) DETERMINATION REGARDING INDUSTRY-WIDE 
CERTIFICATION.—The Secretary shall, not later than 60 
days after receiving a request or resolution described in 
subsection (a) with respect to a domestic industry, or mak-
ing the third certification of workers in a domestic indus-
try described in subsection (a), as the case may be— 
‘‘(1) determine whether all adversely affected 
workers in that domestic industry are eligible to 
apply for assistance under this subchapter, in ac-
cordance with the criteria established under sub-
section (e); or 
‘‘(2) determine whether all adversely affected 
workers in that domestic industry in a specific geo-
graphic region are eligible to apply for assistance 
under this subchapter, in accordance with the cri-
teria established under subsection (e). 
‘‘(c) IDENTIFICATION AND CERTIFICATION.— 
‘‘(1) AFFIRMATIVE DETERMINATION.— 
‘‘(A) IN GENERAL.—Upon making an af-
firmative determination under subsection (b), 
the Secretary shall— 
‘‘(i) identify all firms operating within 
the domestic industry described in para-
graph (1) or (2) of subsection (b) that are 
covered by the determination; and 
‘‘(ii) certify all workers of such firms 
as a group of workers eligible to apply for 
assistance under this subchapter, without 
any other determination of whether such
group meets the requirements of section 
222. 
‘‘(B) OTHER REQUIREMENTS.— 
‘‘(i) IN GENERAL.—Each certification 
under subparagraph (A)(ii) shall specify 
the date on which the total or partial sepa-
ration began or threatened to begin, except 
that— 
‘‘(I) with respect to a request or 
a resolution under subsection (a), 
such date may not be a date that pre-
cedes one year before the date on 
which the Secretary receives the re-
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). 
‘‘(iii) TRAINING
BEFORE
SEPARA-
TION.—Any worker covered by a certifi-
cation under subparagraph (A)(ii) shall be 
deemed to be an adversely affected worker 
for purposes of receiving services under 
section 235 and training under section 
236, without regard to whether the worker 
has been totally or partially separated from 
employment. In the case of a worker not 
totally or partially separated from employ-
ment, the reference in section 236(a)(1)(A) 
to ‘suitable employment’ shall be deemed 
not to refer to such employment. 
‘‘(2) NEGATIVE DETERMINATION.—If the 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-
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. In the case of a worker described in para-
graph (1)(B)(iii), no services described in section 
235 or training described in section 236 may be ini-
tiated after such termination date. 
‘‘(d) OUTREACH.—Upon making a certification under 
subsection (c)(1) of eligibility for adjustment assistance 
under this chapter of a group of workers or all workers 
in a domestic industry, the Secretary shall notify each 
Governor of a State in which the workers are located of 
the certification. 
‘‘(e) REGULATIONS.—The Secretary shall, not later 
than 1 year after the date of the enactment of the Trade
and Globalization Assistance Act of 2007, issue regula-
tions for making determinations under this section, includ-
ing criteria for making such determinations. The Sec-
retary shall develop such regulations in consultation with 
the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate, 
and the Secretary shall submit such regulations to each 
such committee at least 60 days before the regulations go 
into effect. 
‘‘(f) DOMESTIC INDUSTRY DEFINED.—In this 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 
(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 
(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: 
‘‘(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)— 
‘‘(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 
‘‘(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.’’. 
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-
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;
‘‘(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)’’; 
(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 
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 insur-
ance benefit payable to such worker for that week of 
unemployment for which a trade readjustment allow-
ance is payable under paragraph (1); and 
‘‘(B) the amounts described in paragraphs (1) 
and (2) of subsection (a).’’. 
(b) CONFORMING AMENDMENTS.—Section 233 of the 
Trade Act of 1974 (19 U.S.C. 2293) is amended— 
(1) in subsection (a)(1), by striking ‘‘section 
232(a)’’ and inserting ‘‘subsections (a) and (b) of 
section 232’’; and 
(2) in subsection (c), by striking ‘‘section 
232(b)’’ and inserting ‘‘section 232(c)’’. 
SEC. 123. LIMITATIONS ON TRADE READJUSTMENT 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 
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), and
the periods specified in section 231(a)(5)(A), if the Sec-
retary determines that there is justifiable cause for such 
an extension, such as the failure to provide the worker 
with timely information, or justifiable breaks in training 
that exceed the period allowable under subsection (e).’’. 
SEC. 125. APPLICATION OF STATE LAWS AND REGULATIONS 
ON GOOD CAUSE FOR WAIVER OF TIME 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: 
‘‘(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— 
‘‘(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-
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 
are necessary to enable an individual to participate 
in training.’’. 
(b) CLERICAL AMENDMENT.—The item relating to 
section 235 in the table of contents for title II of the 
Trade Act of 1974 is amended to read as follows: 
‘‘235. Employment and case management services.’’. 
SEC. 127. TRAINING. 
(a) IN GENERAL.—Subsection (a)(1) of section 236 
of the Trade Act of 1974 (19 U.S.C. 2296) is amended 
by striking the last sentence. 
(b) FUNDING.—Subsection (a)(2) of such section is 
amended— 
(1) in subparagraph (A), to read as follows:
percent of the total amount of funds available for 
training in that fiscal year; 
‘‘(ii) consider using a broad range of factors for 
the allocation of training funds distributed to States 
for each fiscal year, including factors such as— 
‘‘(I) the number of workers certified under 
sections 223 and 223A in the preceding fiscal 
year; 
‘‘(II) the total number of workers certified 
under sections 223 and 223A that are enrolled 
in training approved under this section; 
‘‘(III) the minimum level of funding nec-
essary to provide training approved under this 
section; and 
‘‘(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: 
‘‘(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-
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 
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.),’’; 
(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 102 of the Higher Education Act of 
1965), including a training program or coursework 
for the purpose of— 
‘‘(i) obtaining a degree or certification; or 
‘‘(ii) completing a degree or certification 
that the worker had previously begun at an 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.’’. 
(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 
in order to receive such training; or 
‘‘(ii) that the worker engaged in on a 
temporary basis during a break in such 
training or a delay in the commencement 
of such training; or 
‘‘(2) because of the application to any such 
week in training of the provisions of State law or 
Federal unemployment insurance law relating to 
availability for work, active search for work, or re-
fusal to accept work.’’.
(b) DEFINITION.—Subchapter B of chapter 2 of title 
II of the Trade Act of 1974 (19 U.S.C. 2291 et seq.) is 
amended— 
(1) in section 233(d) (as redesignated by 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— 
‘‘(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. 
‘‘(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 
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)— 
(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’’.
qualifying family members of such individual 
(and any advance payment of such credit under 
section 7527). This subparagraph shall only 
apply with respect to the first 36 months after 
such eligible individual is first entitled to the 
benefits described in subsection (f)(2)(A). 
‘‘(B) DIVORCE.—In the case of the final-
ization of a divorce between an eligible indi-
vidual and such individual’s spouse, such spouse 
shall be treated as an eligible individual for pur-
poses of this section and section 7527 for a pe-
riod of 36 months beginning with the date of 
such finalization, except that the only qualifying 
family members who may be taken into account 
with respect to such spouse are those individ-
uals who were qualifying family members imme-
diately before such finalization. 
‘‘(C) DEATH.—In the case of the death of 
an eligible individual— 
‘‘(i) any spouse of such individual (de-
termined at the time of such death) shall 
be treated as an eligible individual for pur-
poses of this section and section 7527 for 
a period of 36 months beginning with the 
date of such death, except that the only
qualifying family members who may be 
taken into account with respect to such 
spouse are those individuals who were 
qualifying family members immediately be-
fore such death, and 
‘‘(ii) any individual who was a quali-
fying family member of the decedent imme-
diately before such death (or, in the case 
of an individual to whom paragraph (4) 
applies, the taxpayer to whom the deduc-
tion under section 151 is allowable) shall 
be treated as an eligible individual for pur-
poses of this section and section 7527 for 
a period of 36 months beginning with the 
date of such death, except that in deter-
mining the amount of such credit only 
such qualifying family member may be 
taken into account.’’. 
(2) CONFORMING AMENDMENT.—Section 173(f) 
of the Workforce Investment Act of 1998 (29 U.S.C. 
2918(f)) is amended by adding at the end the fol-
lowing: 
‘‘(8) CONTINUED
QUALIFICATION
OF
FAMILY 
MEMBERS AFTER CERTAIN EVENTS.—
‘‘(A) MEDICARE ELIGIBILITY.—In the case 
of any month which would be an eligible cov-
erage month with respect to an eligible indi-
vidual but for paragraph (7)(B)(i), such month 
shall be treated as an eligible coverage month 
with respect to such eligible individual solely for 
purposes of determining the eligibility of quali-
fying family members of such individual under 
this subsection. This subparagraph shall only 
apply with respect to the first 36 months after 
such eligible individual is first entitled to the 
benefits described in paragraph (7)(B)(i). 
‘‘(B) DIVORCE.—In the case of the final-
ization of a divorce between an eligible indi-
vidual and such individual’s spouse, such spouse 
shall be treated as an eligible individual for pur-
poses of this subsection for a period of 36 
months beginning with the date of such final-
ization, except that the only qualifying family 
members who may be taken into account with 
respect to such spouse are those individuals who 
were qualifying family members immediately be-
fore such finalization. 
‘‘(C) DEATH.—In the case of the death of 
an eligible individual—
‘‘(i) any spouse of such individual (de-
termined at the time of such death) shall 
be treated as an eligible individual for pur-
poses of this subsection for a period of 36 
months beginning with the date of such 
death, except that the only qualifying fam-
ily members who may be taken into ac-
count with respect to such spouse are those 
individuals who were qualifying family 
members immediately before such death, 
and 
‘‘(ii) any individual who was a quali-
fying family member of the decedent imme-
diately before such death shall be treated 
as an eligible individual for purposes this 
subsection for a period of 36 months be-
ginning with the date of such death, except 
that no qualifying family members may be 
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— 
‘‘(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-
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-
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: 
‘‘(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.— 
‘‘(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 
in paragraph (1)(F)(ii), the premiums for 
such coverage are restricted, based on a 
community rating system with respect to 
eligible individuals and their qualifying 
family members, or based on a rate-band 
system under which the maximum rate 
which may be charged does not exceed 150
percent of the standard rate with respect 
to eligible individuals and their qualifying 
family members.’’. 
(2) CONFORMING AMENDMENT.—Clause (i) of 
section 173(f)(2)(B) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2918(f)(2)(B)) is amended 
by adding at the end the following new subclause: 
‘‘(V) RATING SYSTEM REQUIRE-
MENT.—In the case of coverage de-
scribed in subparagraph (A)(vi)(II), 
the premiums for such coverage are 
restricted, based on a community rat-
ing system with respect to eligible in-
dividuals and their qualifying family 
members, or based on a rate-band 
system under which the maximum 
rate which may be charged does not 
exceed 150 percent of the standard 
rate with respect to eligible individuals 
and their qualifying family mem-
bers.’’. 
(h) TERMINATION OF PROGRAM.— 
(1) IN GENERAL.—Section 35 of such Code is 
amended by adding at the end the following new 
subsection:
‘‘(h) TERMINATION.—An individual shall not be 
treated as an eligible individual for purposes of this section 
or section 7527 for any month beginning after December 
31, 2009, unless such individual was an eligible individual 
for a continuous period of months ending with such month 
and beginning before such date.’’. 
(2) CONFORMING AMENDMENT.—Subsection (f) 
of section 173 of the Workforce Investment Act of 
1998 (29 U.S.C. 2918) is amended by adding at the 
end the following new paragraph: 
‘‘(8) TERMINATION.—An individual shall not be 
treated as an eligible individual for purposes of this 
subsection for any month beginning after December 
31, 2009, unless such individual was an eligible indi-
vidual for a continuous period of months ending with 
such month and beginning before such date.’’. 
(i) EFFECTIVE DATE.— 
(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. 
(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 
(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. 
SEC. 142. EXTENSION OF COBRA BENEFITS FOR CERTAIN 
TAA-ELIGIBLE INDIVIDUALS AND PBGC RE-
CIPIENTS. 
(a) ERISA AMENDMENTS.—Section 602(2)(A) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1162(2)(A)) is amended— 
(1) by moving clause (v) to after clause (iv) and 
before the flush left sentence beginning with ‘‘In the 
case of a qualified beneficiary’’;
(2) by striking ‘‘In the case of a qualified bene-
ficiary’’ and inserting the following: 
‘‘(vi) 
SPECIAL
RULE
FOR
DIS-
ABILITY.—In the case of a qualified bene-
ficiary’’; and 
(3) by redesignating clauses (v) and (vi), as 
amended by paragraphs (1) and (2), as clauses (viii) 
and (ix) and by inserting after clause (iv) the fol-
lowing new clauses: 
‘‘(v) SPECIAL RULE FOR PBGC RECIPI-
ENTS.—In the case of a qualifying event 
described in section 603(2) with respect to 
a covered employee who (as of such quali-
fying event) has a nonforeitable right to a 
benefit any portion of which is to be paid 
by the Pension Benefit Guaranty Corpora-
tion under title IV, notwithstanding clause 
(i) or (ii), the date of the death of the cov-
ered employee, or in the case of the sur-
viving spouse or dependent children of the 
covered employee, 36 months after the 
date of the death of the covered employee. 
‘‘(vi) SPECIAL RULE FOR TAA-ELIGI-
BLE INDIVIDUALS.—In the case of a quali-
fying event described in section 603(2)
with respect to a covered employee who is 
(as of the date that the period of coverage 
would, but for this clause or clause (vii), 
otherwise terminate under clause (i) or 
(ii)) a TAA-eligible individual (as defined 
in section 605(b)(4)(B)), the period of cov-
erage shall not terminate by reason of 
clause (i) or (ii), as the case may be, be-
fore the later of the date specified in such 
clause or the date on which such individual 
ceases to be such a TAA-eligible individual. 
‘‘(vii) SPECIAL
RULE
FOR
CERTAIN 
TAA-ELIGIBLE INDIVIDUALS.—In the case 
of a qualifying event described in section 
603(2) with respect to a covered employee 
who is (as of the date that the period of 
coverage would, but for this clause or 
clause (vi), otherwise terminate under 
clause (i) or (ii)) a TAA-eligible individual 
(as defined in section 605(b)(4)(B)) and 
who (as of such qualifying event) has 
attainted age 55 or has completed 10 or 
more years of service with the employer, 
clauses (i) and (ii) shall not apply.’’.
(b) IRC AMENDMENTS.—Clause (i) of section 
4980B(f)(2)(B) of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘In the case of a qualified bene-
ficiary’’ and inserting the following: 
‘‘(VI) SPECIAL
RULE
FOR
DIS-
ABILITY.—In the case of a qualified 
beneficiary’’, and 
(2) by redesignating subclauses (V) and (VI), 
as amended by paragraph (1), as subclauses (VIII) 
and (IX) and by inserting after clause (IV) the fol-
lowing new subclauses: 
‘‘(V) SPECIAL
RULE
FOR
PBGC 
RECIPIENTS.—In the case of a quali-
fying event described in paragraph 
(3)(B) with respect to a covered em-
ployee who (as of such qualifying 
event) has a nonforeitable right to a 
benefit any portion of which is to be 
paid by the Pension Benefit Guaranty 
Corporation under title IV of the Em-
ployee Retirement Income Security 
Act of 1974, notwithstanding sub-
clause (I) or (II), the date of the 
death of the covered employee, or in
the case of the surviving spouse or de-
pendent children of the covered em-
ployee, 36 months after the date of 
the death of the covered employee. 
‘‘(VI) SPECIAL RULE FOR TAA- 
ELIGIBLE INDIVIDUALS.—In the case 
of a qualifying event described in 
paragraph (3)(B) with respect to a 
covered employee who is (as of the 
date that the period of coverage 
would, but for this subclause or sub-
clause 
(VII), 
otherwise 
terminate 
under subclause (I) or (II)) a TAA-el-
igible individual (as defined in para-
graph (5)(C)(iv)(II)), the period of 
coverage shall not terminate by reason 
of subclause (I) or (II), as the case 
may be, before the later of the date 
specified in such subclause or the date 
on which such individual ceases to be 
such a TAA-eligible individual. 
‘‘(VII) SPECIAL RULE FOR CER-
TAIN TAA-ELIGIBLE INDIVIDUALS.—In 
the case of a qualifying event de-
scribed in paragraph (3)(B) with re-
spect to a covered employee who is (as 
of the date that the period of coverage 
would, but for this subclause or sub-
clause (VI), otherwise terminate under 
subclause (I) or (II)) a TAA-eligible 
individual (as defined in paragraph 
(5)(C)(iv)(II)) and who (as of such 
qualifying event) has attainted age 55 
or has completed 10 or more years of 
service with the employer, subclauses 
(I) and (II) shall not apply.’’. 
(c) PHSA AMENDMENTS.—Section 2202(2)(A) of 
the Public Health Service Act (42 U.S.C. 300bb-2(2)(A)) 
is amended— 
(1) by striking ‘‘In the case of a qualified bene-
ficiary’’ and inserting the following: 
‘‘(v) 
SPECIAL
RULE
FOR
DIS-
ABILITY.—In the case of a qualified bene-
ficiary’’; and 
(2) by redesignating clauses (iv) and (v), as 
amended by paragraph (1), as clauses (vi) and (vii) 
and by inserting after clause (iii) the following new 
clauses: 
‘‘(iv) SPECIAL RULE FOR TAA-ELIGI-
BLE INDIVIDUALS.—In the case of a quali-
fying event described in section 2203(2) 
with respect to a covered employee who is 
(as of the date that the period of coverage 
would, but for this clause or clause (v), 
otherwise terminate under clause (i) or 
(ii)) a TAA-eligible individual (as defined 
in section 2205(b)(4)(B)), the period of 
coverage shall not terminate by reason of 
clause (i) or (ii), as the case may be, be-
fore the later of the date specified in such 
clause or the date on which such individual 
ceases to be such a TAA-eligible individual. 
‘‘(v) SPECIAL
RULE
FOR
CERTAIN 
TAA-ELIGIBLE INDIVIDUALS.—In the case 
of a qualifying event described in section 
2203(2) with respect to a covered employee 
who is (as of the date that the period of 
coverage would, but for this clause or 
clause (iv), otherwise terminate under 
clause (i) or (ii)) a TAA-eligible individual 
(as defined in section 2205(b)(4)(B)) and 
who (as of such qualifying event) has 
attainted age 55 or has completed 10 or 
more years of service with the employer, 
clauses (i) and (ii) shall not apply.’’.
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.’’. 
SEC. 162. AGREEMENTS WITH STATES. 
(a) IN GENERAL.—Subsection (a) of section 239 of 
the Trade Act of 1974 (19 U.S.C. 2311) is amended— 
(1) by striking ‘‘will’’ each place it appears and 
inserting ‘‘shall’’; and 
(2) in clause (2), to read as follows: ‘‘(2) in ac-
cordance with subsection (f), shall provide adversely 
affected workers covered by a certification under 
subchapter A the employment and case management 
services described in section 235’’. 
(b) OUTREACH.—Subsection (f) of such section is 
amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) by striking paragraph (4) and inserting the 
following: 
‘‘(4) perform outreach, intake (which may 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. 163. FRAUD AND RECOVERY OF OVERPAYMENTS. 
Section 243(a)(1) of the Trade Act of 1974 (19 
U.S.C. 2315(a)(1)) is amended— 
(1) in the matter preceding subparagraph (A)— 
(A) by striking ‘‘may waive’’ and inserting 
‘‘shall waive’’; and 
(B) by striking ‘‘, in accordance with 
guidelines prescribed by the Secretary,’’; and 
(2) in subparagraph (B), by striking ‘‘would be 
contrary to equity and good conscience’’ and 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-
sources reasonably available to the individual (or 
household) and other ordinary living expenses of the 
individual (or household)’’.
SEC. 164. TECHNICAL AMENDMENTS. 
(a) IN GENERAL.—Section 249 of the Trade Act of 
1974 (19 U.S.C. 2321) is amended— 
(1) in the heading, by striking ‘‘SUBPENA’’ 
and inserting ‘‘SUBPOENA’’; and 
(2) in the text, by striking ‘‘subpena’’ and 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. 165. OFFICE OF TRADE ADJUSTMENT ASSISTANCE; 
DEPUTY ASSISTANT SECRETARY FOR TRADE 
ADJUSTMENT ASSISTANCE. 
(a) IN GENERAL.—Subchapter C of chapter 2 of title 
II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 250. OFFICE OF TRADE ADJUSTMENT ASSISTANCE; 
DEPUTY ASSISTANT SECRETARY FOR TRADE 
ADJUSTMENT ASSISTANCE. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Department of Labor an office to be known as the Office 
of Trade Adjustment Assistance (hereinafter in this 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; 
‘‘(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. 166. 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: 
‘‘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 As-
sistance Act of 2007, the Secretary shall implement a sys-
tem to collect and publicly disseminate data on all ad-
versely affected workers who apply for or receive adjust-
ment 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. 
‘‘(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 
the trade adjustment assistance program under this 
chapter.
‘‘(12) The average duration of training that 
was completed. 
‘‘(c) COLLECTION
OF DATA FROM STATES.—The 
Secretary is authorized to collect such data from the 
States as is necessary to carry out this section. 
‘‘(d) REPORT.—Not later than 16 months after the 
date of the enactment of the Trade and Globalization As-
sistance Act of 2007, and annually thereafter, the Sec-
retary shall submit to the Committee on Ways and Means 
of the House of Representatives, the Committee on Fi-
nance of the Senate, and any other congressional com-
mittee of appropriate jurisdiction, a report on whether 
changes to eligibility requirements, benefits, or training 
funding under the trade adjustment assistance program 
under this chapter should be made based on the data col-
lected under subsection (b). 
‘‘(e) 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.’’.
SEC. 167. EXTENSION OF TAA PROGRAM. 
(a) FOR WORKERS.—Section 245(a) of the Trade Act 
of 1974 (19 U.S.C. 2317(a)) is amended by striking ‘‘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. 168. JUDICIAL REVIEW. 
Section 284 of the Trade Act of 1974 (19 U.S.C. 
2395) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘or 223A’’ after ‘‘223’’; 
and 
(B) by striking ‘‘271’’ and inserting 
‘‘273’’; 
(2) by amending subsection (b) to read as fol-
lows:
‘‘(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. 169. LIBERAL CONSTRUCTION OF CERTIFICATION OF 
WORKERS AND FIRMS. 
(a) IN GENERAL.—Chapter 5 of title II of the Trade 
Act of 1974 (19 U.S.C. 2391 et seq.) is amended by add-
ing at the end the following:
‘‘SEC. 288. LIBERAL CONSTRUCTION OF CERTIFICATION OF 
WORKERS AND FIRMS. 
‘‘The provisions of chapter 2 (relating to adjustment 
assistance for workers) and the provisions of chapter 3 
(relating to adjustment assistance for firms) shall be 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)—
(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
(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; 
‘‘(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; and 
‘‘(C) may, in determining whether in-
creased imports of like or directly competitive 
articles or services exist, give special consider-
ation to whether it is difficult to demonstrate 
an increase of such imports if the share of such 
imports relative to production or consumption 
in the United States of the article produced or
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— 
(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’’. 
SEC. 
204. 
DEMONSTRATION 
PROJECT 
ON 
STRATEGIC 
TRADE TRANSFORMATION ASSISTANCE. 
(a) IN GENERAL.—Chapter 3 of title II of the Trade 
Act of 1974 (19 U.S.C. 2341 et seq.) is amended by add-
ing at the end the following: 
‘‘SEC. 266. DEMONSTRATION PROJECT ON STRATEGIC 
TRADE TRANSFORMATION ASSISTANCE. 
‘‘(a) IN GENERAL.—The Secretary shall conduct a 
demonstration project (in this section referred to as the 
‘project’) to demonstrate a programmatic framework that 
will allow small- and medium-sized manufacturers in the 
United States to gain access to resources that will help 
them better compete domestically and globally. The
project should include among its primary goals the fol-
lowing: 
‘‘(1) Expanding the number of firms capable of 
taking advantage of a trade remedy program with-
out drastically increasing the cost of the remedy to 
the taxpayer. 
‘‘(2) Certifying and providing assistance to ap-
proximately 700 firms. 
‘‘(3) Integrating the benefits of other applicable 
government programs into the project, and making 
benefits from the project subject to that integration. 
‘‘(4) Increasing the number of small- and me-
dium-sized firms that export and increasing the 
value of exports from these firms. 
‘‘(5) Increasing revenues that small- and me-
dium-sized firms derive from sales to the Federal 
Government and State and local governments. 
‘‘(6) Expanding technology availability to the 
small- and medium-sized firm segment by increasing 
access to, and adoption of, the latest technologies 
being developed at Federal laboratories and at uni-
versities. 
‘‘(7) Improving the business and manufacturing 
practices of small- and medium-sized firms to enable 
them to become competitive in a global marketplace.
‘‘(b) ADVISORY BOARD.— 
‘‘(1) IN GENERAL.—In carrying out the project, 
the Secretary shall establish an advisory board com-
prised of representatives described in paragraph (2) 
to provide advice and recommendations with respect 
to the establishment and operation of the project. 
‘‘(2) REPRESENTATIVES.—Representatives re-
ferred to in paragraph (1) shall consist of the re-
spective executive directors of each Trade Adjust-
ment Assistance Center affiliated with the trade ad-
justment assistance for firms program under this 
chapter. 
‘‘(c) DURATION.—The Secretary shall conduct the 
project for the 3-year period beginning on the date that 
is 180 days after the date of the enactment of this Act. 
‘‘(d) ADMINISTRATION
OF
PROJECT.—In imple-
menting the project, the Secretary shall give preference, 
in entering into contracts for the operation and adminis-
tration of the project, to Trade Adjustment Assistance 
Centers affiliated with the trade adjustment assistance for 
firms program under this chapter. 
‘‘(e) REPORT.—The Secretary shall submit to the 
Congress a report on the project under this section not 
later than 6 months after the date of the completion of 
the project. Such report shall include—
‘‘(1) information on the impact of the project 
on mitigating the impact of imports in terms of com-
petitiveness; and 
‘‘(2) recommendations on the cost-effectiveness 
of extending or expanding the project. 
‘‘(f) FUNDING.—Of the amounts made available to 
carry out this chapter for fiscal years 2008 through 2012, 
not more than $1,000,000 for each such fiscal year is au-
thorized to be made available to carry out this section.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for title II of the Trade Act of 1974 is amended by insert-
ing after the item relating to section 265 the following: 
‘‘Sec. 266. Demonstration project on strategic trade transformation assist-
ance.’’. 
TITLE III—TRADE ADJUSTMENT 
ASSISTANCE FOR FARMERS 
SEC. 301. ELIGIBILITY OF CERTAIN OTHER PRODUCERS. 
Section 292 of the Trade Act of 1974 (19 U.S.C. 
2401a) is amended— 
(1) in subsection (a), by inserting ‘‘and on the 
Website of the Department of Agriculture’’ after 
‘‘Federal Register’’; and 
(2) by adding at the end the following: 
‘‘(f) 
ELIGIBILITY
OF
CERTAIN
OTHER
PRO-
DUCERS.—An agricultural commodity producer or group 
of producers that resides outside of the State or region
identified in a petition filed under subsection (a) may file 
a request to become a party to that petition not later than 
30 days after the date notice is published in the Federal 
Register and on the Website of the Department of Agri-
culture with respect to that petition.’’. 
TITLE IV—UNEMPLOYMENT 
INSURANCE 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Unemployment Insur-
ance Modernization Act’’. 
SEC. 402. 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.
‘‘(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
100 
‘‘(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-
106 
regarding this subsection) would otherwise be so available, 
increased by $100,000,000. 
‘‘(2) Each State’s share of any additional amount 
made available by this subsection shall be determined, cer-
tified, and computed in the same manner as described in 
subsection (a)(2) and shall be subject to the same limita-
tions on transfers as described in subsection (b). For pur-
poses of applying subsection (b)(2), the balance of any ad-
vances made to a State under section 1201 shall be cred-
ited against, and operate to reduce (but not below zero)— 
‘‘(A) first, any additional amount which, as a 
result of the enactment of this subsection, is to be 
transferred to the account of such State in a fiscal 
year; and 
‘‘(B) second, any amount which (disregarding 
this subsection) is otherwise to be transferred to the 
account of such State pursuant to subsections (a) 
and (b) in such fiscal year. 
‘‘(3) Any additional amount transferred to the ac-
count of a State as a result of the enactment of this sub-
section— 
‘‘(A) may be used by the State agency of such 
State only in the payment of expenses incurred by 
it for—
107 
‘‘(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).
108 
SEC. 403. 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 ‘‘2010’’, and 
(2) by striking ‘‘2008’’ in paragraph (2) and in-
serting ‘‘2011’’. 
SEC. 404. SAFETY NET REVIEW COMMISSION. 
(a) ESTABLISHMENT.—The Secretary of Labor shall 
establish an advisory commission to be known as the 
‘‘Safety Net Review Commission’’ (hereinafter in this sec-
tion referred to as the ‘‘Commission’’). 
(b) FUNCTION.—It shall be the function of the Com-
mission to evaluate the unemployment compensation pro-
gram, the Trade Adjustment Assistance program, the Job 
Corps program, a program under the Workforce Invest-
ment Act, and other employment assistance programs, in-
cluding the purpose, goals, countercyclical effectiveness, 
coverage, benefit adequacy, trust fund solvency, funding 
of State administrative costs, administrative efficiency, 
and any other aspects of each such program, as well as 
any related provisions of the Internal Revenue Code of 
1986, and to make recommendations for their improve-
ment. 
(c) MEMBERS.—
109 
(1) IN GENERAL.—The Commission shall con-
sist of 11 members as follows: 
(A) Five members appointed by the Presi-
dent, to include representatives of business, 
labor, State government, and the public. 
(B) Three members appointed by the 
President pro tempore of the Senate, in con-
sultation with the Chairman and ranking mem-
ber of the Committee on Finance of the Senate. 
(C) Three members appointed by the 
Speaker of the House of Representatives, in 
consultation with the Chairman and ranking 
member of the Committee on Ways and Means 
of the House of Representatives. 
(2) QUALIFICATIONS.—In appointing members 
under subparagraphs (B) and (C) of paragraph (1), 
the President pro tempore of the Senate and the 
Speaker of the House of Representatives shall each 
appoint— 
(A) one representative of the interests of 
business, 
(B) one representative of the interests of 
labor, and 
(C) one representative of the interests of 
State governments.
110 
(3) VACANCIES.—A vacancy in the Commission 
shall be filled in the manner in which the original 
appointment was made. 
(4) CHAIRMAN.—The President shall appoint 
the Chairman of the Commission from among its 
members. 
(d) STAFF AND OTHER ASSISTANCE.— 
(1) IN
GENERAL.—The Commission may en-
gage any technical assistance (including actuarial 
services) required by the Commission to carry out its 
functions under this section. 
(2) 
ASSISTANCE
FROM
SECRETARY
OF 
LABOR.—The Secretary of Labor shall provide the 
Commission with any staff, office facilities, and 
other assistance, and any data prepared by the De-
partment of Labor, required by the Commission to 
carry out its functions under this section. 
(e) COMPENSATION.—Each member of the Commis-
sion— 
(1) shall be entitled to receive compensation at 
the rate of pay for level V of the Executive Schedule 
under section 5316 of title 5, United States Code, 
for each day (including travel time) during which 
such member is engaged in the actual performance 
of duties vested in the Commission; and
111 
(2) while engaged in the performance of such 
duties away from such member’s home or regular 
place of business, shall be allowed travel expenses 
(including per diem in lieu of subsistence) as author-
ized by section 5703 of such title 5 for persons in 
the Government employed intermittently. 
(f) REPORT.—Not later than 6 months after the date 
of the enactment of this Act, the Commission shall submit 
to the President and the Congress a report setting forth 
the findings and recommendations of the Commission as 
a result of its evaluation under this section. 
(g) TERMINATION.—The Commission shall terminate 
2 months after submitting its report pursuant to sub-
section (f). 
TITLE V—MANUFACTURING 
REDEVELOPMENT ZONES 
SEC. 501. 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.
112 
‘‘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 
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,
113 
‘‘(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 
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
114 
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-
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.
115 
‘‘(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. 
‘‘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
116 
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-
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
117 
‘‘(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. 
‘‘(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-
118 
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), 
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,
119 
‘‘(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— 
‘‘(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
120 
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— 
‘‘(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-
121 
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)— 
‘‘(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
122 
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 
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
123 
‘‘(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 
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.—
124 
‘‘(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 
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).
125 
‘‘(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 
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
126 
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). 
‘‘(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’
127 
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-
tent to reimburse such expenditure with 
the proceeds of a qualified tax credit bond, 
‘‘(ii) not later than 60 days after pay-
ment of the original expenditure, the issuer 
adopts an official intent to reimburse the 
original expenditure with such proceeds, 
and 
‘‘(iii) the reimbursement is made not 
later than 18 months after the date the 
original expenditure is paid. 
‘‘(3) REPORTING.—An issue shall be treated as 
meeting the requirements of this paragraph if the
128 
issuer of qualified tax credit bonds submits reports 
similar to the reports required under section 149(e). 
‘‘(4) SPECIAL
RULES
RELATING
TO
ARBI-
TRAGE.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if the issuer satisfies the require-
ments of section 148 with respect to the pro-
ceeds of the issue. 
‘‘(B) SPECIAL
RULE
FOR
INVESTMENTS 
DURING EXPENDITURE PERIOD.—An issue shall 
not be treated as failing to meet the require-
ments of subparagraph (A) by reason of any in-
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
129 
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). 
‘‘(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
130 
more which are issued during the month. If the 
term as so determined is not a multiple of a 
whole year, such term shall be rounded to the 
next highest whole year. 
‘‘(e) OTHER DEFINITIONS.—For purposes of this 
subchapter— 
‘‘(1) CREDIT
ALLOWANCE
DATE.—The term 
‘credit allowance date’ means— 
‘‘(A) March 15, 
‘‘(B) June 15, 
‘‘(C) September 15, and 
‘‘(D) December 15. 
Such term includes the last day on which the bond 
is outstanding. 
‘‘(2) BOND.—The term ‘bond’ includes any 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
131 
‘‘(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 
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.’’.
133 
(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’’.
134 
(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. 502. 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’’.
135 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
TITLE 
VI—WORKER 
ADJUST-
MENT AND RETRAINING NO-
TIFICATION 
SEC. 601. SHORT TITLE. 
This title may be cited as the ‘‘Early Warning and 
Health Care for Workers Affected by Globalization Act’’. 
SEC. 602. AMENDMENTS TO THE WARN ACT. 
(a) DEFINITIONS.— 
(1) EMPLOYER, PLANT
CLOSING, AND
MASS 
LAYOFF.—Paragraphs (1) through (3) of section 
2(a) of the Worker Adjustment and Retraining Noti-
fication Act (29 U.S.C. 2101(a)(1)–(3)) are amend-
ed to read as follows: 
‘‘(1) the term ‘employer’ means any business 
enterprise that employs 100 or more employees; 
‘‘(2) the term ‘plant closing’ means the perma-
nent or temporary shutdown of a single site of em-
ployment, or of one or more facilities or operating 
units within a single site of employment, which re-
sults in an employment loss at such site, during any 
30-day period, for 50 or more employees;
136 
‘‘(3) the term ‘mass layoff’ means a reduction 
in force at a single site of employment which results 
in an employment loss at such site, during any 30- 
day period, for 50 or more employees.’’. 
(2) SECRETARY OF LABOR.— 
(A) DEFINITION.—Paragraph (8) of such 
section is amended to read as follows: 
‘‘(8) the term ‘Secretary’ means the Secretary 
of Labor or a representative of the Secretary of 
Labor.’’. 
(B) REGULATIONS.—Section 8(a) of such 
Act (29 U.S.C. 2107(a)) is amended by striking 
‘‘of Labor’’. 
(3) CONFORMING AMENDMENTS.— 
(A) NOTICE.—Section 3(d) of such Act (29 
U.S.C. 2102(d)) is amended by striking out ‘‘, 
each of which is less than the minimum number 
of employees specified in section 2(a)(2) or (3) 
but which in the aggregate exceed that min-
imum number,’’ and inserting ‘‘which in the ag-
gregate exceed the minimum number of employ-
ees specified in section 2(a)(2) or (3)’’. 
(B) DEFINITIONS.—Section 2(b)(1) of 
such Act (29 U.S.C. 2101(b)(1)) is amended by 
striking ‘‘(other than a part-time employee)’’.
137 
(b) NOTICE.— 
(1) NOTICE PERIOD.— 
(A) IN GENERAL.—Section 3 of the Work-
er Adjustment and Retraining Notification Act 
(29 U.S.C. 2102) is amended by striking ‘‘60- 
day period’’ and inserting ‘‘90-day period’’ each 
place it appears. 
(B) CONFORMING
AMENDMENT.—Section 
5(a)(1) of such Act (29 U.S.C. 2104(a)(1)) is 
amended in the matter following subparagraph 
(B), by striking ‘‘60 days’’ and inserting ‘‘90 
days’’. 
(2) RECIPIENTS.—Section 3(a) of such Act (29 
U.S.C. 2102(a)) is amended— 
(A) in paragraph (1), by striking ‘‘or, if 
there is no such representative at that time, to 
each affected employee; and’’ and inserting 
‘‘and to each affected employee;’’; and 
(B) by redesignating paragraph (2) as 
paragraph (3) and inserting after paragraph 
(1) the following: 
‘‘(2) to the Secretary; and’’. 
(3) INFORMATION REGARDING BENEFITS AND 
SERVICES AVAILABLE TO WORKERS AND DOL NO-
TICE
TO
CONGRESS.—Section 3 of such Act (29
138 
U.S.C. 2102) is further amended by adding at the 
end the following: 
‘‘(e) INFORMATION
REGARDING
BENEFITS
AND 
SERVICES AVAILABLE TO EMPLOYEES.—Concurrent with 
or immediately after providing the notice required under 
subsection (a)(1), an employer shall provide affected em-
ployees with information regarding the benefits and serv-
ices available to such employees, as described in the guide 
compiled by the Secretary under section 12. 
‘‘(f) DOL NOTICE TO CONGRESS.—As soon as prac-
ticable and not later than 15 days after receiving notifica-
tion under subsection (a)(2), the Secretary of Labor shall 
notify the appropriate Senators and Members of the 
House of Representatives who represent the area or areas 
where the plant closing or mass layoff is to occur.’’. 
(c) ENFORCEMENT.— 
(1) AMOUNT.—Section 5(a)(1) of the Worker 
Adjustment and Retraining Notification Act (29 
U.S.C. 2104(a)(1)) is amended— 
(A) in subparagraph (A)— 
(i) by striking ‘‘back pay for each day 
of violation’’ and inserting ‘‘two days’ pay 
multiplied by the number of calendar days 
short of 90 that the employer provided no-
tice before such closing or layoff’’
139 
(ii) in clause (ii), by striking ‘‘and’’ at 
the end thereof; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) interest on the amount described in sub-
paragraph (A) calculated at the prevailing rate; 
and’’; and 
(D) by striking the matter following sub-
paragraph (C) (as so redesignated). 
(2) EXEMPTION.—Section 5(a)(4) of such Act 
(29 U.S.C. 2104(a)(4)) is amended by striking ‘‘re-
duce the amount of the liability or penalty provided 
for in this section’’ and inserting ‘‘reduce the 
amount of the liability under subparagraph (C) of 
paragraph (1) and reduce the amount of the penalty 
provided for in paragraph (3)’’. 
(3) 
ADMINISTRATIVE
COMPLAINT.—Section 
5(a)(5) of such Act (29 U.S.C. 2104(a)(5)) is 
amended— 
(A) by striking ‘‘may sue’’ and inserting 
‘‘may,’’; 
(B) by inserting after ‘‘both,’’ the fol-
lowing: ‘‘(A) file a complaint with the Secretary
140 
alleging a violation of section 3, or (B) bring 
suit’’; and 
(C) by adding at the end thereof the fol-
lowing new sentence: ‘‘A person seeking to en-
force such liability may use one or both of the 
enforcement mechanisms described in subpara-
graphs (A) and (B).’’. 
(4) ACTION BY THE SECRETARY.—Section 5 of 
such Act (29 U.S.C. 2104) is amended— 
(A) by redesignating subsection (b) as sub-
section (d); and 
(B) by inserting after subsection (a) the 
following new subsections: 
‘‘(b) ACTION BY THE SECRETARY.— 
‘‘(1) ADMINISTRATIVE ACTION.—The Secretary 
shall receive, investigate, and attempt to resolve 
complaints of violations of section 3 by an employer 
in the same manner that the Secretary receives, in-
vestigates, and attempts to resolve complaints of vio-
lations of sections 6 and 7 of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206 and 207). 
‘‘(2) SUBPOENA POWERS.—For the purposes of 
any investigation provided for in this section, the 
Secretary shall have the subpoena authority provided
141 
for under section 9 of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 209). 
‘‘(3) SUMS RECOVERED.—Any sums recovered 
by the Secretary on behalf of an employee under 
subparagraphs (A), (B), and (D) of section 5(a)(1) 
shall be held in a special deposit account and shall 
be paid, on order of the Secretary, directly to each 
employee affected. Any such sums not paid to an 
employee because of inability to do so within a pe-
riod of 3 years, and any sums recovered by the Sec-
retary under subparagraph (C) of section 5(a)(1), 
shall be credited as an offsetting collection to the ap-
propriations account of the Secretary of Labor for 
expenses for the administration of this Act and shall 
remain available to the Secretary until expended. 
‘‘(c) LIMITATIONS.— 
‘‘(1) LIMITATIONS PERIOD.—An action may be 
brought under this section not later than 2 years 
after the date of the last event constituting the al-
leged violation for which the action is brought. 
‘‘(2) COMMENCEMENT.—In determining when 
an action is commenced under this section for the 
purposes of paragraph (1), it shall be considered to 
be commenced on the date on which the complaint 
is filed.’’.
142 
(d) POSTING OF NOTICES; PENALTIES.—Section 11 
of the Worker Adjustment and Retraining Notification Act 
(29 U.S.C. 2101 note) is amended to read as follows: 
‘‘SEC. 11. POSTING OF NOTICES; PENALTIES. 
‘‘(a) POSTING OF NOTICES.—Each employer shall 
post and keep posted in conspicuous places upon its prem-
ises where notices to employees are customarily posted a 
notice to be prepared or approved by the Secretary setting 
forth excerpts from, or summaries of, the pertinent provi-
sions of this chapter and information pertinent to the fil-
ing of a complaint. 
‘‘(b) PENALTIES.—A willful violation of this section 
shall be punishable by a fine of not more than $500 for 
each separate offense.’’. 
(e) NON-WAIVER OF RIGHTS AND REMEDIES; INFOR-
MATION REGARDING BENEFITS AND SERVICES AVAIL-
ABLE TO EMPLOYEES.—Such Act is further amended by 
adding at the end the following: 
‘‘SEC. 12. RIGHTS AND REMEDIES NOT SUBJECT TO WAIV-
ER. 
‘‘(a) IN GENERAL.—The rights and remedies pro-
vided under this Act (including the right to maintain a 
civil action) may not be waived, deferred, or lost pursuant 
to any agreement or settlement other than an agreement 
or settlement described in subsection (b).