HR 3920 RFS
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.’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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— 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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: 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(A) The total amount of payments that may be 
made under paragraph (1) for each of the fiscal years 
2008 and 2009 shall not exceed $440,000,000. The total 
amount of payments that may be made under paragraph 
(1) for fiscal year 2010 and each subsequent fiscal year 
shall not exceed $660,000,000.’’; and 
(2) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) Not later than 120 days after the date of the 
enactment of the Trade and Globalization Assistance Act 
of 2007, the Secretary shall establish and implement pro-
cedures for the allocation among the States in each fiscal 
year of funds available to pay the costs of training for 
workers under this section. The Secretary shall, at least 
60 days before the date on which the procedures described 
in this subparagraph are first implemented, consult with 
the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate 
with respect to such procedures. 
‘‘(C) In establishing and implementing the proce-
dures under subparagraph (B), the Secretary shall— 
‘‘(i) provide for at least 3 distributions of funds 
available for training in the fiscal year, and, in the 
first such distribution, disburse not more than 50 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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; 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(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’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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.’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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— 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(b) RELOCATION ALLOWANCES.—Section 238 of the 
Trade Act of 1974 (19 U.S.C. 2298) is amended— 
(1) in subsection (a)(2)(E)(ii), by striking ‘‘, 
unless the worker received a waiver under section 
231(c)’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘90 per-
cent of the’’ and inserting ‘‘all’’; and 
(B) in paragraph (2), by striking ‘‘$1,250’’ 
and inserting ‘‘$1,500’’. 
Subtitle D—Health Care Provisions 
SEC. 141. MODIFICATIONS RELATING HEALTH INSURANCE 
ASSISTANCE FOR CERTAIN TAA AND PBGC 
PENSION RECIPIENTS. 
(a) INCREASE IN CREDIT PERCENTAGE AMOUNT.— 
(1) IN GENERAL.—Subsection (a) of section 35 
of the Internal Revenue Code of 1986 is amended by 
striking ‘‘65 percent’’ and inserting ‘‘85 percent’’. 
(2) CONFORMING AMENDMENT.—Subsection (b) 
of section 7527 of such Code is amended by striking 
‘‘65 percent’’ and inserting ‘‘85 percent’’. 
(b) TAA RECIPIENTS RECEIVING UNEMPLOYMENT 
COMPENSATION AND NOT ENROLLED IN TRAINING PRO-
GRAM ELIGIBLE FOR CREDIT.—Paragraph (2) of section 
35(c) of such Code is amended to read as follows: 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(2) ELIGIBLE TAA RECIPIENT.—The term ‘eli-
gible TAA recipient’ means, with respect to any 
month, any individual who— 
‘‘(A) is receiving for any day of such 
month a trade readjustment allowance under 
chapter 2 of title II of the Trade Act of 1974, 
or 
‘‘(B) who is receiving unemployment com-
pensation (as defined in section 85) for such 
month and who would be eligible to receive such 
allowance for such month if section 231 of such 
Act were applied without regard to subsections 
(a)(3)(B) and (a)(5) thereof. 
An individual shall continue to be treated as an eli-
gible TAA recipient during the first month that such 
individual would otherwise cease to be an eligible 
TAA recipient by reason of the preceding sentence.’’. 
(c) ELIGIBILITY FOR ELIGIBLE INDIVIDUALS MADE 
RETROACTIVE
TO TAA-RELATED LOSS
OF EMPLOY-
MENT.—Subsection (c) of section 35 of such Code is 
amended by adding at the end the following new para-
graph: 
‘‘(5) RETROACTIVE ELIGIBILITY FOR TAA RE-
CIPIENTS.—In the case of any individual who is an 
eligible TAA recipient or eligible alternative TAA re-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
cipient for any month, such individual shall be treat-
ed as an eligible individual for any month which pre-
cedes such month and which begins after the later 
of— 
‘‘(A) the date of the separation from em-
ployment which gives rise to such individual 
being an eligible TAA recipient or eligible alter-
native TAA recipient, or 
‘‘(B) December 31, 2007.’’. 
(d) CONTINUED QUALIFICATION OF FAMILY MEM-
BERS AFTER CERTAIN EVENTS.— 
(1) IN GENERAL.—Subsection (g) of section 35 
of such Code is amended by redesignating paragraph 
(9) as paragraph (10) and inserting after paragraph 
(8) the following new paragraph: 
‘‘(9) CONTINUED
QUALIFICATION
OF
FAMILY 
MEMBERS AFTER CERTAIN EVENTS.— 
‘‘(A) MEDICARE ELIGIBILITY.—In the case 
of any month which would be an eligible cov-
erage month with respect to an eligible indi-
vidual but for subsection (f)(2)(A), such month 
shall be treated as an eligible coverage month 
with respect to such eligible individual solely for 
purposes of determining the amount of the 
credit under this section with respect to any 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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.— 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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— 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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: 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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.’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(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— 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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: 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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’’; 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(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) 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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.’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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.’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods of coverage which would 
(without regard to the amendments made by this section) 
end on or after January 1, 2008. 
Subtitle E—Wage Insurance 
SEC. 151. REEMPLOYMENT TRADE ADJUSTMENT ASSIST-
ANCE PROGRAM FOR OLDER WORKERS. 
(a) IN GENERAL.—Section 246 of the Trade Act of 
1974 (19 U.S.C. 2318) is amended— 
(1) by amending the heading to read as follows: 
‘‘REEMPLOYMENT
TRADE
ADJUSTMENT
AS-
SISTANCE’’; 
(2) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘alter-
native’’ and inserting ‘‘reemployment’’; 
(B) in paragraph (2)(A), by striking ‘‘for 
a period not to exceed 2 years’’ and inserting 
‘‘for the eligibility period under paragraph 
(3)(C)’’; and 
(C) by striking paragraphs (3) through (5) 
and inserting the following: 
‘‘(3) ELIGIBILITY.— 
‘‘(A) IN GENERAL.—A group of workers 
certified under subchapter A as eligible for ad-
justment assistance under subchapter A is eligi-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
ble for benefits described in paragraph (2) 
under the program established under paragraph 
(1). 
‘‘(B) INDIVIDUAL ELIGIBILITY.—A worker 
in a group of workers described in subpara-
graph (A) may elect to receive benefits de-
scribed in paragraph (2) under the program es-
tablished under paragraph (1) if the worker— 
‘‘(i) is at least 50 years of age; 
‘‘(ii) earns not more than $60,000 
each year in wages from reemployment; 
‘‘(iii)(I) is employed on a full-time 
basis as defined by State law in the State 
in which the worker is employed; or 
‘‘(II) is employed at least 20 hours 
per week and is enrolled in training ap-
proved under section 236; and 
‘‘(iv) is not employed at the firm from 
which the worker was separated. 
In the case of a worker described in clause 
(iii)(II), the percentage referred to in para-
graph (2)(A) shall be deemed to be a percent-
age equal to 1⁄2 of the ratio of weekly hours of 
employment referred to in clause (iii)(II) to 
weekly hours of employment of that worker at 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
the time of separation (but not more than 50 
percent). 
‘‘(C) 
ELIGIBILITY
PERIOD
FOR
PAY-
MENTS.—A worker in a group of workers de-
scribed in subparagraph (A) may receive pay-
ments described in paragraph (2)(A) under the 
program established under paragraph (1) for a 
period not to exceed 2 years from the date on 
which the worker exhausts all rights to unem-
ployment insurance based on the separation of 
the worker from adversely affected employment 
or the date on which the worker obtains reem-
ployment, whichever is earlier. 
‘‘(D) TRAINING AND OTHER SERVICES.—A 
worker described in subparagraph (B) shall be 
eligible to receive training approved under sec-
tion 236 and services under section 235. 
‘‘(4) TOTAL AMOUNT OF PAYMENTS.—The pay-
ments described in paragraph (2)(A) made to a 
worker may not exceed $12,000 per worker during 
the eligibility period under paragraph (3)(C). 
‘‘(5) LIMITATION
ON
OTHER
BENEFITS.—A 
worker described in paragraph (3) may not receive 
a trade readjustment allowance under part I of sub-
chapter B during any week for which the worker re-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
ceives a payment described in paragraph (2)(A).’’; 
and 
(3) in subsection (b)(2), by striking ‘‘subsection 
(a)(3)(B)’’ and inserting ‘‘subsection (a)(3)’’. 
(b) EXTENSION OF PROGRAM.—Subsection (b)(1) of 
such section is amended by striking ‘‘5’’ and inserting 
‘‘10’’. 
(c) CLERICAL AMENDMENT.—The table of contents 
for title II of the Trade Act of 1974 is amended by strik-
ing the item relating to section 246 and inserting the fol-
lowing: 
‘‘Sec. 246. Reemployment trade adjustment assistance program.’’. 
Subtitle F—Other Matters 
SEC. 161. RESTRICTION ON ELIGIBILITY FOR PROGRAM 
BENEFITS. 
(a) IN GENERAL.—Subchapter A of chapter 2 of title 
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) is 
amended by adding at the end the following new section: 
‘‘SEC. 226. RESTRICTION ON ELIGIBILITY FOR PROGRAM 
BENEFITS. 
‘‘No benefit allowances, training, or other employ-
ment services may be provided under this chapter to a 
worker who is an alien unless the alien is an individual 
lawfully admitted for permanent residence to the United 
States, is lawfully present in the United States, or is per-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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)’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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; 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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.’’. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6211
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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: 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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: 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘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)— 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
service provided by the firm concerned is al-
ready significant. 
‘‘(2) PROCESS AND METHODS FOR OBTAINING 
CERTIFICATIONS.— 
‘‘(A) REQUEST
BY
PETITIONER.—If re-
quested by a firm, the Secretary shall obtain 
the certifications under paragraph (1)(B) in 
such manner as the Secretary determines is ap-
propriate. 
‘‘(B) PROTECTION OF CONFIDENTIAL IN-
FORMATION.—The Secretary may not release 
information obtained under subparagraph (A) 
that the Secretary considers to be confidential 
business information unless the party submit-
ting the confidential business information had 
notice, at the time of submission, that such in-
formation would be released by the Secretary, 
or such party subsequently consents to the re-
lease of the information. Nothing in this sub-
paragraph shall be construed to prohibit a court 
from requiring the submission of such confiden-
tial business information to the court in cam-
era. 
‘‘(f) NOTIFICATION TO FIRMS OF AVAILABILITY OF 
BENEFITS.—Upon receiving notice from the Secretary of 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
Labor under section 225(c) of the identity of a firm or 
firms that are covered by a certification issued under sec-
tion 223 or 223A, the Secretary of Commerce shall notify 
such firm or firms of the availability of adjustment assist-
ance under this chapter.’’. 
(b) DEFINITION.—Section 261 of the Trade Act of 
1974 (19 U.S.C. 2351) is amended— 
(1) by striking ‘‘For purposes of’’ and inserting 
‘‘(a) FIRM.—For purposes of’’; and 
(2) by adding at the end the following: 
‘‘(b) SERVICE SECTOR FIRM.—For purposes of this 
chapter, the term ‘service sector firm’ means a firm en-
gaged in the business of providing services.’’. 
SEC. 202. EXTENSION OF AUTHORIZATION OF TRADE AD-
JUSTMENT ASSISTANCE FOR FIRMS. 
Section 256(b) of the Trade Act of 1974 (19 U.S.C. 
2346(b)) is amended— 
(1) by striking ‘‘and $4,000,000 for the 3- 
month period beginning on October 1, 2007,’’ insert-
ing ‘‘and $50,000,000 for each of fiscal years 2008 
through 2012,’’ after ‘‘fiscal years 2003 through 
2007,’’; and 
(2) by inserting after the first sentence the fol-
lowing: ‘‘Of the amounts appropriated pursuant to 
this subsection for each fiscal year, $350,000 shall 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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— 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
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. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
HR 3920 RFS
‘‘(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 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
101 
HR 3920 RFS
paragraph, the term ‘compelling family reasons’ in-
cludes at least the following: 
‘‘(i) Domestic violence (verified by such 
reasonable and confidential documentation as 
the State law may require) which causes the in-
dividual reasonably to believe that such individ-
ual’s continued employment would jeopardize 
the safety of the individual or of any member 
of the individual’s immediate family. 
‘‘(ii) The illness or disability of a member 
of the individual’s immediate family. 
‘‘(iii) The need for the individual to accom-
pany such individual’s spouse— 
‘‘(I) to a place from which it is im-
practical for such individual to commute; 
and 
‘‘(II) due to a change in location of 
the spouse’s employment. 
‘‘(C) Weekly unemployment compensation is 
payable under this subparagraph to any individual 
who is unemployed (as determined under the State 
unemployment compensation law), has exhausted all 
rights to regular and (if applicable) extended unem-
ployment compensation under the State law, and is 
enrolled and making satisfactory progress in a 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
102 
HR 3920 RFS
State-approved training program or in a job training 
program authorized under the Workforce Investment 
Act of 1998. Such program shall prepare individuals 
who have been separated from a declining occupa-
tion, or who have been involuntarily and indefinitely 
separated from employment as a result of a perma-
nent reduction of operations at the individual’s place 
of employment, for entry into a high-demand occu-
pation. The amount of unemployment compensation 
payable under this subparagraph to an individual for 
a week of unemployment shall be equal to the indi-
vidual’s average weekly benefit amount (including 
dependents’ allowances) for the most recent benefit 
year, and the total amount of unemployment com-
pensation payable under this subparagraph to any 
individual shall be equal to at least 26 times the in-
dividual’s average weekly benefit amount (including 
dependents’ allowances) for the most recent benefit 
year. 
‘‘(4)(A) Any State seeking an incentive payment 
under this subsection shall submit an application therefor 
at such time, in such manner, and complete with such in-
formation as the Secretary of Labor may by regulation 
prescribe, including information relating to compliance 
with the requirements of paragraph (2) or (3), as well as 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
103 
HR 3920 RFS
how the State intends to use the incentive payment to im-
prove or strengthen the State’s unemployment compensa-
tion program. The Secretary of Labor shall, within 90 
days after receiving a complete application, notify the 
State agency of the State of the Secretary’s findings with 
respect to the requirements of paragraph (2) or (3) (or 
both). 
‘‘(B) If the Secretary of Labor finds that the State 
law provisions (disregarding any State law provisions 
which are not then currently in effect as permanent law 
or which are subject to discontinuation under certain con-
ditions) meet the requirements of paragraph (2) or (3), 
as the case may be, the Secretary of Labor shall thereupon 
make a certification to that effect to the Secretary of the 
Treasury, together with a certification as to the amount 
of the incentive payment to be transferred to the State 
account pursuant to that finding. The Secretary of the 
Treasury shall make the appropriate transfer within 30 
days after receiving such certification. 
‘‘(C)(i) No certification of compliance with the re-
quirements of paragraph (2) or (3) may be made with re-
spect to any State whose State law is not otherwise eligible 
for certification under section 303 or approvable under 
section 3304 of the Federal Unemployment Tax Act. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
104 
HR 3920 RFS
‘‘(ii) No certification of compliance with the require-
ments of paragraph (3) may be made with respect to any 
State whose State law is not in compliance with the re-
quirements of paragraph (2). 
‘‘(iii) No application under subparagraph (A) may be 
considered if submitted before October 1, 2007, or after 
the latest date necessary (as specified by the Secretary of 
Labor in regulations) to ensure that all incentive pay-
ments under this subsection are made before October 1, 
2012. 
‘‘(5)(A) Except as provided in subparagraph (B), any 
amount transferred to the account of a State under this 
subsection may be used by such State only in the payment 
of cash benefits to individuals with respect to their unem-
ployment (including for dependents’ allowances and for 
unemployment compensation under paragraph (3)(C)), ex-
clusive of expenses of administration. 
‘‘(B) A State may, subject to the same conditions as 
set forth in subsection (c)(2) (excluding subparagraph (B) 
thereof, and deeming the reference to ‘subsections (a) and 
(b)’ in subparagraph (D) thereof to include this sub-
section), use any amount transferred to the account of 
such State under this subsection for the administration 
of its unemployment compensation law and public employ-
ment offices. 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00104
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
105 
HR 3920 RFS
‘‘(6) Out of any money in the Federal unemployment 
account not otherwise appropriated, the Secretary of the 
Treasury shall reserve $7,000,000,000 for incentive pay-
ments under this subsection. Any amount so reserved shall 
not be taken into account for purposes of any determina-
tion under section 902, 910, or 1203 of the amount in 
the Federal unemployment account as of any given time. 
Any amount so reserved for which the Secretary of the 
Treasury has not received a certification under paragraph 
(4)(B) by the deadline described in paragraph (4)(C)(iii) 
shall, upon the close of fiscal year 2012, become unre-
stricted as to use as part of the Federal unemployment 
account. 
‘‘(7) For purposes of this subsection, the terms ‘ben-
efit year’, ‘base period’, and ‘week’ have the respective 
meanings given such terms under section 205 of the Fed-
eral-State Extended Unemployment Compensation Act of 
1970 (26 U.S.C. 3304 note). 
‘‘Special Transfers in Fiscal Years 2008 Through 2012 
for Administration 
‘‘(g)(1) Notwithstanding any other provision of this 
section, the total amount available for transfer to the ac-
counts of the States pursuant to subsection (a) as of the 
beginning of each of fiscal years 2008, 2009, 2010, 2011, 
and 2012 shall be equal to the total amount which (dis-
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS
106 
HR 3920 RFS
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— 
VerDate Aug 31 2005 
23:49 Nov 05, 2007
Jkt 059200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H3920.RFS
H3920
hmoore on PRODPC68 with HMBILLS