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110th Congress                                            Rept. 110-414
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1
======================================================================
 
             TRADE AND GLOBALIZATION ASSISTANCE ACT OF 2007

                                _______
                                

                October 29, 2007.--Ordered to be printed

                                _______
                                

    Mr. Rangel, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3920]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 3920) to amend the Trade Act of 1974 to reauthorize 
trade adjustment assistance, to extend trade adjustment 
assistance to service workers and firms, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Trade and 
Globalization Assistance Act of 2007''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

            TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

  Subtitle A--Trade Adjustment Assistance for Service Sector Workers; 
  Expansion of Covered Shifts in Production; Expansion of Downstream 
                      Secondary Worker Eligibility

Sec. 101. Extension of trade adjustment assistance to services sector; 
shifts in production.
Sec. 102. Determinations by Secretary of Labor.
Sec. 103. Monitoring and reporting relating to service sector.

         Subtitle B--Industry-Wide Trade Adjustment Assistance

Sec. 111. Industry-wide determinations.
Sec. 112. Notifications regarding affirmative determinations and 
safeguards.
Sec. 113. Notification to Secretary of Commerce.
Sec. 114. Restriction on eligibility for program benefits.

                      Subtitle C--Program Benefits

Sec. 121. Qualifying requirements for workers.
Sec. 122. Weekly amounts.
Sec. 123. Limitations on trade readjustment allowances; allowances for 
extended training and breaks in training.
Sec. 124. Special rules for calculation of eligibility period.
Sec. 125. Application of State laws and regulations on good cause for 
waiver of time limits or late filing of claims.
Sec. 126. Employment and case management services.
Sec. 127. Training.
Sec. 128. Prerequisite education; approved training programs.
Sec. 129. Eligibility for unemployment insurance and program benefits 
while in training.
Sec. 130. Administrative expenses and employment and case management 
services.
Sec. 131. Job search and relocation allowances.

                   Subtitle D--Health Care Provisions

Sec. 141. Modifications relating health insurance assistance for 
certain TAA and PBGC pension recipients.

                       Subtitle E--Wage Insurance

Sec. 151. Reemployment trade adjustment assistance program for older 
workers.

                       Subtitle F--Other Matters

Sec. 161. Agreements with States.
Sec. 162. Fraud and recovery of overpayments.
Sec. 163. Technical amendments.
Sec. 164. Office of Trade Adjustment Assistance; Deputy Assistant 
Secretary for Trade Adjustment Assistance.
Sec. 165. Collection of data and reports; information to workers.
Sec. 166. Extension of TAA program.
Sec. 167. Judicial review.
Sec. 168. Liberal construction of certification of workers and firms.

            TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

Sec. 201. Trade adjustment assistance for firms.
Sec. 202. Extension of authorization of trade adjustment assistance for 
firms.
Sec. 203. Industry-wide programs for the development of new services.
Sec. 204. Demonstration project on strategic trade transformation 
assistance.

                   TITLE III--UNEMPLOYMENT INSURANCE

Sec. 301. Short title.
Sec. 302. Special transfers to State accounts in the Unemployment Trust 
Fund.
Sec. 303. Extension of FUTA tax.
Sec. 304. Safety Net Review Commission.

              TITLE IV--MANUFACTURING REDEVELOPMENT ZONES

Sec. 401. Manufacturing redevelopment zones.
Sec. 402. Delay in application of worldwide interest allocation.

SEC. 2. FINDINGS.

  Congress makes the following findings:
          (1) Since January 2001, the United States economy has lost 
        nearly 3 million jobs in the manufacturing sector alone.
          (2) Today, over 7.1 million people in the United States are 
        unemployed, and nearly 1.2 million of those individuals have 
        been unemployed for 6 months or longer.
          (3) While the United States manufacturing sector has been the 
        hardest hit by increased unemployment, the United States 
        service sector has also seen declines as jobs have moved to 
        low-cost labor markets, such as China, India, and the 
        Philippines.
          (4) Promoting the economic growth and competitiveness of the 
        United States requires--
                  (A) opening substantial new markets for United States 
                goods, services, and farm products;
                  (B) building a strong framework of rules for 
                international trade to level the playing field for 
                United States workers and businesses in all sectors of 
                the economy; and
                  (C) helping those affected by globalization overcome 
                its challenges and succeed.
          (5) Congress created the trade adjustment assistance program 
        in 1962 to provide United States workers who lose their jobs 
        because of foreign competition with government-funded training 
        and associated income support to enable such workers to 
        transition to new, good-paying jobs.
          (6) Unfortunately, the trade adjustment assistance program 
        has not kept pace with globalization and it is failing to 
        ensure that all workers adversely affected by trade receive the 
        assistance they need and deserve.
          (7) Workers in the service sector, who make up approximately 
        80 percent of the United States workforce, are ineligible for 
        trade adjustment assistance.
          (8) Inadequate funding for training leaves many dislocated 
        workers without access to the retraining they need to find 
        good-paying jobs.
          (9) Unnecessary, unduly burdensome, and confusing program 
        eligibility rules prevent workers from gaining access to 
        benefits for which they are eligible.
          (10) The health coverage tax credit suffers from fundamental 
        flaws and, as a result, the credit is not being used by the 
        vast majority of people who are eligible for it, despite a 
        clear need for access to affordable health care.
          (11) To meet the challenges posed by globalization and to 
        preserve the critical role that United States workers play in 
        promoting the strength and prosperity of the United States, the 
        trade adjustment assistance program must be reformed.

            TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

  Subtitle A--Trade Adjustment Assistance for Service Sector Workers; 
  Expansion of Covered Shifts in Production; Expansion of Downstream 
                      Secondary Worker Eligibility

SEC. 101. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICES SECTOR; 
                    SHIFTS IN PRODUCTION.

  (a) Petitions.--Section 221(a) of the Trade Act of 1974 (19 U.S.C. 
2271(a)(1)) is amended--
          (1) in paragraph (1)--
                  (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``Secretary'' and inserting 
                        ``Secretary of Labor''; and
                          (ii) by striking ``or subdivision'' and 
                        inserting (or subdivision) or public agency (or 
                        subdivision); and
                  (B) in subparagraph (A), by striking ``firm)'' and 
                inserting ``firm, and workers in a service sector firm 
                or subdivision of a service sector firm, or public 
                agency)''; and
          (2) in paragraph (3), by inserting ``and on the Website of 
        the Department of Labor'' after ``Federal Register''.
  (b) Group Eligibility Requirements.--
          (1) In general.--Subsection (a) of section 222 of the Trade 
        Act of 1974 (19 U.S.C. 2272) is amended--
                  (A) in the matter preceding paragraph (1), by 
                striking ``(including workers in any agricultural firm 
                or subdivision of an agricultural firm)'' and inserting 
                ``(other than workers in a public agency)'';
                  (B) in paragraph (2)--
                          (i) in subparagraph (A)(ii), by striking 
                        ``like or directly competitive with articles 
                        produced'' and inserting ``or services like or 
                        directly competitive with articles produced or 
                        services provided''; and
                          (ii) by striking subparagraph (B) and 
                        inserting the following:
                  ``(B) (i) there has been a shift, by such workers' 
                firm or subdivision to a foreign country, of production 
                of articles, or in provision of services, like or 
                directly competitive with articles that are produced, 
                or services that are provided, by such firm or 
                subdivision; or
                  ``(ii) such workers' firm or subdivision has obtained 
                or is likely to obtain articles or services described 
                in clause (i) from a foreign country.''.
          (2) Workers in public agencies.--Such section is further 
        amended--
                  (A) by redesignating subsections (b) and (c) as 
                subsections (c) and (d), respectively; and
                  (B) by inserting after subsection (a) the following:
  ``(b) Adversely Affected Workers in Public Agencies.-- A group of 
workers in a public agency shall be certified by the Secretary as 
eligible to apply for adjustment assistance under this chapter pursuant 
to a petition filed under section 221 if the Secretary determines 
that--
          ``(1) a significant number or proportion of the workers in 
        the public agency, or an appropriate subdivision of the public 
        agency, have become totally or partially separated, or are 
        threatened to become totally or partially separated; and
          ``(2) the public agency or subdivision has obtained or is 
        likely to obtain from a foreign country services that would 
        otherwise be provided by such agency or subdivision.''.
          (3) Adversely affected secondary workers.--Subsection (c) of 
        such section (as redesignated by paragraph (2)(A) of this 
        subsection) is amended--
                  (A) in the matter preceding paragraph (1), by 
                striking ``agricultural firm)'' and inserting 
                ``agricultural firm, and workers in a service sector 
                firm or subdivision of a service sector firm)'';
                  (B) in paragraph (2)--
                          (i) by inserting ``or service'' after 
                        ``related to the article''; and
                          (ii) by striking ``(c)(3)'' and inserting 
                        ``(d)(3)''; and
                  (C) in paragraph (3)(A), by striking ``it supplied to 
                the firm (or subdivision)'' and inserting ``or services 
                it supplied to the firm (or subdivision)''.
          (4) Definitions and eligibility.--Subsection (d) of such 
        section (as redesignated by paragraph (2)(A) of this 
        subsection) is amended--
                  (A) by striking ``(d) For purposes of this section--
                '' and inserting ``(d) Definitions and Eligibility.--
                For purposes of this section:''
                  (B) in paragraph (3), to read as follows:
          ``(3) Downstream producer.--The term `downstream producer' 
        means a firm that performs additional, value-added production 
        processes or services for a firm or subdivision, including a 
        firm that performs final assembly, finishing, testing, 
        packaging, or maintenance or transportation services directly 
        for another firm (or subdivision), for articles or services 
        that were the basis for a certification of eligibility under 
        subsection (a) of a group of workers employed by such other 
        firm (or subdivision).'';
                  (C) in paragraph (4)--
                          (i) by striking ``for articles'' and 
                        inserting ``, or services, used in the 
                        production of articles or in the provision of 
                        services, as the case may be,''; and
                          (ii) by inserting ``(or subdivision)'' after 
                        ``such other firm''; and
                  (D) by adding at the end the following:
          ``(5) Firms identified by itc.--A petition filed under 
        section 221 covering a group of workers from a firm or 
        appropriate subdivision of a firm meets the requirements of 
        subsection (a) if the firm is identified by the International 
        Trade Commission under subsection (c), (d), or (e) of section 
        224.''.
          (5) Basis for secretary's determinations.--Such section is 
        further amended by adding at the end the following:
  ``(e) Basis for Secretary's Determinations.--
          ``(1) Increased imports of services.--For purposes of 
        subsection (a)(2)(A)(ii), the Secretary may determine that 
        increased imports of like or directly competitive services 
        exist if the customers of the workers' firm or subdivision 
        accounting for not less than 20 percent of the sales of the 
        workers' firm or subdivision (as the case may be) certify to 
        the Secretary that such customers are obtaining such services 
        from a foreign country.
          ``(2) Shift in production; obtaining articles or services 
        abroad.--For purposes of subsections (a)(2)(B) and (b)(2), the 
        Secretary may determine that there has been a shift in 
        production of articles or provision of services, or that a 
        workers' firm or public agency, or subdivision thereof, has 
        obtained or is likely to obtain like or directly competitive 
        articles or services from a foreign country, based on a 
        certification thereof from the workers' firm, public agency, or 
        subdivision (as the case may be).
          ``(3) Process and methods for obtaining certifications.--
                  ``(A) Request by petitioner.--If requested by the 
                petitioner, the Secretary shall obtain the 
                certifications under paragraphs (1) and (2) in such 
                manner as the Secretary determines is appropriate, 
                including by issuing subpoenas under section 249 when 
                necessary.
                  ``(B) Protection of confidential information.--The 
                Secretary may not release information obtained under 
                subparagraph (A) that the Secretary considers to be 
                confidential business information unless the party 
                submitting the confidential business information had 
                notice, at the time of submission, that such 
                information would be released by the Secretary, or such 
                party subsequently consents to the release of the 
                information. Nothing in this subparagraph shall be 
                construed to prohibit a court from requiring the 
                submission of such confidential business information to 
                the court in camera.''.
  (c) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C. 
2319) is amended--
          (1) in the matter preceding paragraph (1), by striking 
        ``chapter--'' and inserting ``chapter:'';
          (2) in paragraph (1)--
                  (A) by inserting ``, or employment in a public agency 
                or appropriate subdivision of a public agency,'' after 
                ``of a firm''; and
                  (B) by striking ``such firm or subdivision'' 
                inserting ``such firm (or subdivision) or public agency 
                (or subdivision)'';
          (3) in paragraph (2), by striking ``employment--'' and all 
        that follows and inserting ``employment has been totally or 
        partially separated from such employment.'';
          (4) by redesignating paragraphs (8) through (17) as 
        paragraphs (10) through (19), respectively; and
          (5) by inserting after paragraph (6) the following:
          ``(7) The term `public agency' means a department or agency 
        of a State or local government or of the Federal Government.
          ``(8) The term `service sector firm' means an entity engaged 
        in the business of providing services.
          ``(9) Except as otherwise provided, the term `Secretary' 
        means the Secretary of Labor.''.

SEC. 102. DETERMINATIONS BY SECRETARY OF LABOR.

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

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

  (a) In General.--Section 282 of the Trade Act of 1974 (19 U.S.C. 
2393) is amended--
          (1) in the heading, by striking ``system'' and 
        inserting ``and data