S. 14Senate109th Congress (2005-2007)In Committee
Fair Wage, Competition, and Investment Act of 20005

Legislative Activity

Stay on top of the latest movement without scrolling through every action
1 earlier action
SenateIntro Referral Latest Action
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR 1/25/2005 S437-450)
Finance Committee
January 24, 2005
View full timeline
SenateIntro Referral
Introduced in Senate
January 24, 2005
SenateIntro Referral
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR 1/25/2005 S437-450)
Finance Committee
January 24, 2005
Floor Debate

2 members
What members said about S. 14 on the floor
2 Democrats
Sen. Harry ReidD-NV · Jan 24, 2005
Mr. President, in the beginning of each session of Congress, the majority and minority introduce their bills. The first 10 bills are those of the majority. That is the tradition of the Senate. The…
Mr. President, in the beginning of each session of Congress, the majority and minority introduce their bills. The first 10 bills are those of the majority. That is the tradition of the Senate. The distinguished Republican leader has worked hard, as have I, putting forward the bills that represent the majority. I have worked hard putting forward the bills that represent the minority, and I with Senator Durbin, Senator Stabenow, and Senator Schumer today in the Lyndon Johnson Room presented our bills to the public.
The promise of America is a simple one. It is a promise that says if one works hard and plays by the rules, they can build a stronger, brighter future for themselves and their family. This promise has lived on for generations in this great country of ours. It is one that I have lived personally.
As a result of hard work and the generosity of people who helped me with my education, I received a good education, and in the process many doors were opened. After completing my education, I was able to go into business and now have what I believe is the best job in the world--a Member of the Senate representing the people of the State of Nevada.
My story is not unique. As many know, I was born and raised in Searchlight. Searchlight represents many places throughout this country. It represents countless individuals whose lives have been blessed, as mine has. I am sorry to say that these stories about a young boy or girl from a place like Searchlight are becoming fewer and fewer. We now have crumbling schools. The average school in America is 50 years old. We have schools such as those in the southern Nevada area, the Las Vegas area, that are being built at a rapid place. As many as 18 in 1 year have to be dedicated to keep up with the growth of Las Vegas. The superintendent of public education has become a superintendent of public construction. School districts need help with their schools, in inner cities and in rural communities.
Good-paying jobs are giving way to jobs that, no matter how hard one works, just don't pay the bills. There are 45 million people without health care. That means there are too many Americans who are not getting the care they need to live healthy and prosperous lives.
This is the America we live in today, a country whose founding promise is slipping further away from reality for far too many American families, a country where a kid like me from Searchlight finds it harder to get ahead, despite the generosity of people in the community, the good will of teachers, and a work ethic, which is important.
Why do we find ourselves in this state today? Why is the promise of America, the promise that led me and others to this great Chamber, not still alive and well for all of us? In part, it is because we have a Government that simply does not live up to the values upon which the promise was made. We have leaders whose poor planning and mismanagement have sent young men and women into battle overseas, some say without the equipment and support they deserve to succeed in the battlefield.
Some way, and I certainly underscore this, there was a plan to win the war but not a plan to win the peace. We have a Government that by any measure fails to do all it can to make our country safe and secure. We have leaders who love to create crises when they do not exist, such as Social Security, which will be funded for many decades into the future, some say as far as the year 2055.
Some say there is a crisis with judges. This morning someone asked: What happens if you do to President Bush this next 4 years what you did the first 4? I say, well, he should jump with joy. That would mean 408 judges he would get approved and 20 disapproved.
The Constitution has in it a clause that deals with advise and consent. If the oath I took just a few weeks ago to uphold the Constitution means anything, certainly that part of the oath that says I must live up to the Constitution, it says the Senate of the United States has an obligation, legal in nature, to give advice and consent to the President of his nominations. I will continue to do that. I believe that is a role we have.
There are real crises. I have talked about some of them. I talked about others: education, health care, the environment that we do not talk about much anymore. Energy is a crisis we have in this country. The staggering deficit we have developed these past 4 years is a crisis. I believe there are real crises that are crippling our economy, hurting the large and small businesses, and pricing too many families out of quality health care. That is what our legislation we introduce today deals with. We have a Government that has forgotten who it is responsible to, one that has become content with feeding tens of billions to the special interests while failing in its commitment to tens of millions of seniors.
America's promise will not stay alive if America's Government betrays it, and that is why at the outset of this Congress Senate Democrats are committed to restoring the promise of America by pursuing an agenda that honors the values behind it, the values of security, opportunity, and responsibility. These values are at the core of America's promise.
The ten Democratic bills which I will introduce today deal first with America's security. For example, we need to work to increase our Special Operations Forces by 2,000 individuals. We need to expand the pace and scope of programs to eliminate and safeguard nuclear materials and enhance efforts to prevent radioactive and other deadly
materials from entering the United States. That is Nunn-Lugar. We must do more than what we have done with the Nunn-Lugar legislation.
We must increase our military. Our legislation calls for an increase by 40,000--30,000 in the Army and 10,000 in the Marines--so that we have enough troops to win the peace in Iraq and fight terrorism around the world without extending tours of duty to the breaking point.
We will create a Guard and Reserve bill of rights to protect and promote the interests of our dedicated citizen soldiers and fight for the families of those who serve to recognize the sacrifices they have made. S. 13 will fulfill our duty to America's veterans. It will ensure that all veterans get the health care and prescription drugs they deserve while also expanding the availability and accessibility of mental health care. We will ensure that no veteran is forced to choose between a retirement and disability check, and launch a 21st century GI bill that tells soldiers of today that we will help them to succeed when they return, just as we did for those great heroes who returned from World War II, Korea, and Vietnam.
We need to expand opportunities to all Americans, and economic opportunity is going to be extended through S. 14. We, for example, will end tax incentives that encourage companies to ship jobs overseas. We are going to restore overtime rights for 6 million workers who lost that guarantee last year.
S. 15 will help us with education. It must be a cornerstone of equal opportunity. Democrats will keep our promise to our children by increasing support for preschool education, fully funding No Child Left Behind and making sure it is implemented the right way. We will address the shortfall of math, science, and special education teachers by creating tuition incentives for college students to major in these fields, and we will work to make sure every American who wants it can afford 4 years of college with new tuition tax credits and relief from burdensome loans.
There are problems in rural school districts in Kansas, Nevada, Illinois, Nebraska and Utah. I have found, in my travels through rural Nevada, one of the biggest problems the school districts in rural Nevada have is school buses. That might not seem like much in the overall scheme of things, but it is rare for a bus in Nevada rural schools to be new. They buy used, old buses. Most of the buses are worn out before they get them. We could help rural America in lots of different ways, but we could help rural America so much if we provided a way where they could buy new buses. We need to do that. When school districts have these old buses, children have no choice but to ride in outdated, unsafe buses. That is why we will create a Federal program to help rural school districts purchase new buses that will get kids to school in a reliable and safe manner.
S. 16 will make sure health care is more affordable to families and businesses. We know health care costs have spiraled. That is why we will bring down the price of prescription drugs by legalizing safe importation of FDA-approved prescription drugs from industrialized countries. We will also ensure that every child in America has access to health care and that every pregnant woman in America can get the maternity care she needs and deserves. We will reduce health care costs by creating incentives to modernize health care and by offering tax credits to small businesses.
Finally, we want to build a government that meets its responsibilities both to Americans today and in the future. S. 18 will help America's seniors. Medicare should work for seniors, not the HMOs and drug companies. First we will eliminate the provision that actually prohibits Medicare from using the negotiating power of its 41 million beneficiaries to get lower prices. The Medicare bill has a provision in it that says Medicare cannot negotiate for lower prices. They have to go to Rite Aid and other places, just like the rest of us. They cannot compete with the HMOs which can buy their drugs in bulk.
We will eliminate the giveaways like the $10 billion slush funds for hospitals in the Medicare bill. We will improve the prescription drug benefit by phasing out the current donut hole where seniors pay a premium but get no credit. Seniors across the country were shocked by the record increase in Medicare Part B premiums this year. This must be addressed. We must be a government that honors its responsibilities to future generations. We have had reckless spending these last 4 years. It has turned record surpluses into record deficits and has mortgaged our children's future. It is long past time for Washington to return to the same commonsense budget that families use around the kitchen table every day, and that is why we will call for pay-as-you-go budgeting.
Our final bill, S. 20, will support women in making responsible choices about their health. The United States has the highest rate of unintended pregnancies among all industrialized nations. Half of all pregnancies in this country are unintended and nearly half of those end in abortion. By increasing access to family planning services, Democrats will improve women's health, reduce the rate of unintended pregnancies, and reduce the number of abortions, all while saving scarce public health dollars.
Security, opportunity, and responsibility--these are more than just three words or three values. They are the foundation on which America's promise is built. Senate Democrats open the 109th Congress steadfastly committed to keeping this promise alive, so that all Americans who work hard can build a stronger and brighter future for their families. While these 10 bills do not represent all the goals of the 109th Congress, they represent the start and the core of our mission.
No doubt we will tackle many other important issues before Congress closes, but we will never lose sight of the values for which we fight and the promises we must keep.
For instance, when it comes to strengthening Social Security, Democrats will keep America's promise. The program is our bargain that says those who work hard and pay their taxes have earned a secure retirement. Our values compel us to keep the promise of security to our seniors, and Senate Democrats will do this. We will not irresponsibly cut benefits or jeopardize the opportunity of future generations with $2 trillion in new debt. This is keeping America's promise, and that is what Senate Democrats will do.
In closing, I would like to say a few words to my colleagues across the aisle. We hope and believe many Republicans share our view that we must not allow partisanship to stand in the way of America's promise, or let politics get in the way of keeping alive the American dream. That is our pledge. We will work with the majority in meeting the demands of America.
I recognize the first 30 minutes of morning business time was that of the majority. How much time did I use?
I apologize to my friends on the other side of the aisle. Ten minutes of that will be leader time. The rest Senator Durbin will use for whatever he feels appropriate when our time comes.
Sen. Debbie StabenowD-MI · Jan 25, 2005
Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.
Bill Text

Latest available legislative text
Reading Mode
Raw Text PDF
Introduced in SenateIssued January 24, 2005
        [Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 14 Introduced in Senate (IS)]

109th CONGRESS
1st Session
S. 14

To provide fair wages for America's workers, to create new jobs through
investment in America, to provide for fair trade and competitiveness,
and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

January 24, 2005

Ms. Stabenow (for herself, Mr. Reid, Mr. Corzine, Mr. Kennedy, Mr.
Inouye, Ms. Mikulski, Mr. Dorgan, Mr. Leahy, Mr. Rockefeller, Mr.
Schumer, Mr. Durbin, and Mr. Dayton) introduced the following bill;
which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To provide fair wages for America's workers, to create new jobs through
investment in America, to provide for fair trade and competitiveness,
and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Fair Wage,
Competition, and Investment Act of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
TITLE I--FAIR WAGES FOR AMERICA'S WORKERS

Subtitle A--Overtime Rights Protection

Sec. 111. Short title.
Sec. 112. Clarification of regulations relating to overtime
compensation.
Subtitle B--Fair Minimum Wage

Sec. 121. Short title.
Sec. 122. Minimum wage.
Subtitle C--Sense of the Senate Regarding Multiemployer Pension Plans

Sec. 131. Sense of the Senate regarding multiemployer pension plans.
TITLE II--CREATING NEW JOBS THROUGH INVESTMENT IN AMERICA

Subtitle A--Eliminating Incentives for Outsourcing

Sec. 211. Taxation of income of controlled foreign corporations
attributable to imported property.
Sec. 212. Amendments to the Worker Adjustment and Retraining
Notification Act.
Subtitle B--Investment in Infrastructure

Chapter 1--Transportation Infrastructure

Sec. 221. Transportation infrastructure funding.
Chapter 2--Water Infrastructure

Sec. 231. Water infrastructure funding.
Chapter 3--Rail Infrastructure

Sec. 241. Rail infrastructure funding.
Sec. 242. Grant authority.
Sec. 243. Grant conditions for right-of-way projects.
Sec. 244. Use of funds for near-term projects.
Sec. 245. Treatment of rail operators using grant-funded rail
infrastructure.
Chapter 4--Transit Infrastructure

Sec. 251. Transit.
Chapter 5--Aviation Infrastructure

Sec. 261. Authorization of appropriations.
Sec. 262. Distribution of funds.
Sec. 263. Nonapplicability of certain laws.
Sec. 264. Use of funds for near-term projects.
Chapter 6--Broadband Access Tax Credit

Sec. 271. Expensing of broadband Internet access expenditures.
Chapter 7--Research And Development Tax Credit

Sec. 281. Findings.
Sec. 282. Permanent extension of research credit.
Sec. 283. Increase in rates of alternative incremental credit.
Sec. 284. Alternative simplified credit for qualified research
expenses.
Sec. 285. Expansion of research credit.
Subtitle C--Technology Programs

Sec. 291. Authorizations of appropriations for the Advanced Technology
Program and the Manufacturing Extension
Partnership Program.
Sec. 292. Sense of the Senate promoting science and technology funding
for a strong economic future.
TITLE III--FAIR TRADE AND COMPETITIVENESS

Subtitle A--Trade Enforcement Enhancement

Sec. 311. Identification of trade expansion priorities.
Sec. 312. Chief enforcement negotiator.
Sec. 313. Foreign debt.
Sec. 314. Authorization of appropriations.
Subtitle B--Exchange Rate Policy and Currency Manipulation

Sec. 321. Negotiations regarding currency valuation.
Subtitle C--Trade Adjustment Assistance

Chapter 1--Service Workers

Sec. 331. Short title.
Sec. 332. Extension of trade adjustment assistance to services sector.
Sec. 333. Trade adjustment assistance for firms and industries.
Sec. 334. Monitoring and reporting.
Sec. 335. Alternative trade adjustment assistance.
Sec. 336. Effective date.
Chapter 2--Trade Adjustment Assistance for Communities

Sec. 341. Short title.
Sec. 342. Purpose.
Sec. 343. Trade adjustment assistance for communities.
Sec. 344. Conforming amendments.
Sec. 345. Effective date.
Chapter 3--Office Of Trade Adjustment Assistance

Sec. 351. Short title.
Sec. 352. Office of Trade Adjustment Assistance.
Sec. 353. Effective date.
Chapter 4--Improvement Of Credit for Health Insurance Costs of Eligible
Individuals

Sec. 361. Improvement of the affordability of the credit.
Sec. 362. Offering of Federal fallback coverage.
Sec. 363. Clarification of eligibility of spouse of certain individuals
entitled to medicare.
Subtitle D--Sense of the Senate on Free Trade Agreements

Sec. 371. Sense of the Senate on free trade agreements.

TITLE I--FAIR WAGES FOR AMERICA'S WORKERS

Subtitle A--Overtime Rights Protection

SEC. 111. SHORT TITLE.

This subtitle may be cited as the ``Overtime Rights Protection Act
of 2005''.

SEC. 112. CLARIFICATION OF REGULATIONS RELATING TO OVERTIME
COMPENSATION.

Section 13 of the Fair Labor Standards Act of 1938 (29 U.S.C. 213)
is amended by adding at the end the following:
``(k)(1) Notwithstanding the provisions of subchapter II of chapter
5 and chapter 7 of title 5, United States Code (commonly referred to as
the Administrative Procedures Act) or any other provision of law, any
portion of the final rule promulgated on April 23, 2004, revising part
541 of title 29, Code of Federal Regulations, that exempts from the
overtime pay provision of section 7 of this Act any employee who would
not otherwise be exempt if the regulations in effect on March 31, 2003,
remained in effect, shall have no force or effect and that portion of
such regulations (as in effect on March 31, 2003) that would prevent
such employee from being exempt shall be reinstated.
``(2) The Secretary shall adjust the minimum salary level for
exemption under section 13(a)(1) in the following manner:
``(A) Not later than 60 days after the date of enactment of
this subsection, the Secretary shall increase the minimum
salary level for exemption under subsection (a)(1) for
executive, administrative, and managerial occupations from the
level of $155 per week in 1975 to $591 per week (an amount
equal to the increase in the Employment Cost Index (published
by the Bureau of Labor Statistics) for executive,
administrative, and managerial occupations between 1975 and
2005).
``(B) Not later than December 31 of the calendar year
following the increase required in subparagraph (A), and each
December 31 thereafter, the Secretary shall increase the
minimum salary level for exemption under subsection (a)(1) by
an amount equal to the increase in the Employment Cost Index
for executive, administrative, and managerial occupations for
the year involved.''.

Subtitle B--Fair Minimum Wage

SEC. 121. SHORT TITLE.

This subtitle may be cited as the ``Fair Minimum Wage Act of
2005''.

SEC. 122. MINIMUM WAGE.

(a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) $5.85 an hour, beginning on the 60th day
after the date of enactment of the Fair Minimum Wage
Act of 2005;
``(B) $6.55 an hour, beginning 12 months after that
60th day; and
``(C) $7.25 an hour, beginning 24 months after that
60th day;''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect 60 days after the date of enactment of this Act.

Subtitle C--Sense of the Senate Regarding Multiemployer Pension Plans

SEC. 131. SENSE OF THE SENATE REGARDING MULTIEMPLOYER PENSION PLANS.

(a) Findings.--The Senate makes the following findings:
(1) Multiemployer pension plans have been a major force in
the delivery of employee benefits to active and retired
American workers and their dependents for over half a century.
(2) There are approximately 1,700 multiemployer defined
benefit pension plans in which approximately 9,700,000 workers
and retirees participate.
(3) Three-quarters of the approximately 60,000 to 65,000
employers that participate in multiemployer plans have fewer
that 100 employees.
(4) Multiemployer plans allow for greater access and
affordability for smaller employers and pension portability for
their employees as they move from one job to another, and
permit workers to earn a pension where they might otherwise not
be able to do so.
(5) The 2000-2002 drop in the stock market and decline in
equity values has affected all investors, including
multiemployer plans.
(6) The decline in value sustained by multiemployer defined
benefit pension plans have threatened the stability of this
private sector source of secure retirement income.
(7) Participating employers could face onerous excise taxes
and other penalties as a result of the serious, adverse
financial impact due to these market losses.
(8) In 2004, the United States Senate recognized the
severity of this situation and passed by an overwhelmingly,
large bipartisan margin of 86 to 9 temporary relief provisions
for single and multiemployer defined benefit pension plans.
(b) Sense of the Senate.--It is the sense of the Senate that the
Senate--
(1) expresses its strong support for multiemployer defined
benefit pension plans;
(2) recognizes the importance of an environment in which
multiemployer plans can continue their vital role in providing
benefits to working men and women;
(3) recognizes that multiemployer pension plan relief must
be designed for the multiemployer labor-relations environment
that supports the plans; and
(4) supports legislation to strengthen and protect the
viability of multiemployer pension plans for the continued
benefit of current and retired members, and their families and
survivors, and to strengthen the ability of all plans to
address funding problems that occur.

TITLE II--CREATING NEW JOBS THROUGH INVESTMENT IN AMERICA

Subtitle A--Eliminating Incentives for Outsourcing

SEC. 211. TAXATION OF INCOME OF CONTROLLED FOREIGN CORPORATIONS
ATTRIBUTABLE TO IMPORTED PROPERTY.

(a) General Rule.--Subsection (a) of section 954 of the Internal
Revenue Code of 1986 (defining foreign base company income) is amended
by striking ``and'' at the end of paragraph (4), by striking the period
at the end of paragraph (5) and inserting ``, and'', and by adding at
the end the following new paragraph:
``(6) imported property income for the taxable year
(determined under subsection (j) and reduced as provided in
subsection (b)(5)).''.
(b) Definition of Imported Property Income.--Section 954 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subsection:
``(j) Imported Property Income.--
``(1) In general.--For purposes of subsection (a)(6), the
term `imported property income' means income (whether in the
form of profits, commissions, fees, or otherwise) derived in
connection with--
``(A) manufacturing, producing, growing, or
extracting imported property;
``(B) the sale, exchange, or other disposition of
imported property; or
``(C) the lease, rental, or licensing of imported
property.
Such term shall not include any foreign oil and gas extraction
income (within the meaning of section 907(c)) or any foreign
oil related income (within the meaning of section 907(c)).
``(2) Imported property.--For purposes of this subsection--
``(A) In general.--Except as otherwise provided in
this paragraph, the term `imported property' means
property which is imported into the United States by
the controlled foreign corporation or a related person.
``(B) Imported property includes certain property
imported by unrelated persons.--The term `imported
property' includes any property imported into the
United States by an unrelated person if, when such
property was sold to the unrelated person by the
controlled foreign corporation (or a related person),
it was reasonable to expect that--
``(i) such property would be imported into
the United States; or
``(ii) such property would be used as a
component in other property which would be
imported into the United States.
``(C) Exception for property subsequently
exported.--The term `imported property' does not
include any property which is imported into the United
States and which--
``(i) before substantial use in the United
States, is sold, leased, or rented by the
controlled foreign corporation or a related
person for direct use, consumption, or
disposition outside the United States; or
``(ii) is used by the controlled foreign
corporation or a related person as a component
in other property which is so sold, leased, or
rented.
``(3) Definitions and special rules.--
``(A) Import.--For purposes of this subsection, the
term `import' means entering, or withdrawal from
warehouse, for consumption or use. Such term includes
any grant of the right to use intangible property (as
defined in section 936(h)(3)(B)) in the United States.
``(B) United states.--For purposes of this
subsection, the term `United States' includes the
Commonwealth of Puerto Rico, the Virgin Islands of the
United States, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
``(C) Unrelated person.--For purposes of this
subsection, the term `unrelated person' means any
person who is not a related person with respect to the
controlled foreign corporation.
``(D) Coordination with foreign base company sales
income.--For purposes of this section, the term
`foreign base company sales income' shall not include
any imported property income.''.
(c) Separate Application of Limitations on Foreign Tax Credit for
Imported Property Income.--
(1) Before 2007.--
(A) In general.--Paragraph (1) of section 904(d) of
the Internal Revenue Code of 1986 (relating to separate
application of section with respect to certain
categories of income), as in effect for taxable years
beginning before January 1, 2007, is amended by
striking ``and'' at the end of subparagraph (H), by
redesignating subparagraph (I) as subparagraph (J), and
by inserting after subparagraph (H) the following new
subparagraph:
``(I) imported property income, and''.
(B) Imported property income defined.--Paragraph
(2) of section 904(d) of such Code, as so in effect, is
amended by redesignating subparagraphs (H) and (I) as
subparagraphs (I) and (J), respectively, and by
inserting after subparagraph (G) the following new
subparagraph:
``(H) Imported property income.--The term `imported
property income' means any income received or accrued
by any person which is of a kind which would be
imported property income (as defined in section
954(j)).''.
(C) Look-thru rules to apply.--Subparagraph (F) of
section 904(d)(3) of such Code, as so in effect, is
amended by striking ``or (D)'' and inserting ``(D), or
(I)''.
(2) After 2006.--
(A) In general.--Paragraph (1) of section 904(d) of
such Code (relating to separate application of section
with respect to certain categories of income), as in
effect for taxable years beginning after December 31,
2006, is amended by striking ``and'' at the end of
subparagraph (A), by redesignating subparagraph (B) as
subparagraph (C), and by inserting after subparagraph
(A) the following new subparagraph:
``(B) imported property income, and''.
(B) Imported property income defined.--Paragraph
(2) of section 904(d) of such Code, as so in effect, is
amended by redesignating subparagraphs (I) and (J) as
subparagraphs (J) and (K), respectively, and by
inserting after subparagraph (H) the following new
subparagraph:
``(I) Imported property income.--The term `imported
property income' means any income received or accrued
by any person which is of a kind which would be
imported property income (as defined in section
954(j)).''.
(C) Conforming amendment.--Clause (ii) of section
904(d)(2)(A) of such Code, as so in effect, is amended
by inserting ``or imported property income'' after
``passive category income''.
(d) Technical Amendments.--
(1) Clause (iii) of section 952(c)(1)(B) of the Internal
Revenue Code of 1986 (relating to certain prior year deficits
may be taken into account) is amended--
(A) by redesignating subclauses (II), (III), (IV),
and (V) as subclauses (III), (IV), (V), and (VI), and
(B) by inserting after subclause (I) the following
new subclause:
``(II) imported property income,''.
(2) Paragraph (5) of section 954(b) of such Code (relating
to deductions to be taken into account) is amended by striking
``and the foreign base company oil related income'' and
inserting ``the foreign base company oil related income, and
the imported property income''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years of
foreign corporations beginning after the date of the enactment
of this Act, and to taxable years of United States shareholders
within which or with which such taxable years of such foreign
corporations end.
(2) Subsection (c).--The amendments made by subsection
(c)(1) shall apply to taxable years beginning after the date of
the enactment of this Act and before January 1, 2007, and the
amendments made by subsection (c)(2) shall apply to taxable
years beginning after December 31, 2006.

SEC. 212. AMENDMENTS TO THE WORKER ADJUSTMENT AND RETRAINING
NOTIFICATION ACT.

(a) Definition.--Section 2(a) of the Worker Adjustment and
Retraining Notification Act (29 U.S.C. 2101(a)) is amended--
(1) in paragraph (3)(B), by striking ``for--'' and all that
follows through ``500 employees'' in clause (ii), and inserting
``for not less than 50 employees'';
(2) in paragraph (7), by striking ``and'' after the
semicolon;
(3) in paragraph (8), by striking the period and inserting
``; and''; and
(4) by adding at the end the following:
``(9) the term `offshoring of jobs' means any action taken
by an employer the effect of which is to create, shift, or
transfer employment positions or facilities outside the United
States and which results in an employment loss during any 30-
day period for 15 or more employees.''.
(b) Notice.--Section 3 of the Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2102) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``60-day'' and inserting ``90-day'';
(B) in paragraph (1), by striking ``and'' after the
semicolon;
(C) in paragraph (2), by striking the period and
inserting ``; and''; and
(D) by inserting after paragraph (2), the
following:
``(3) to the Secretary of Labor.'';
(2) in subsection (b), by striking ``60-day'' both places
that such term appears and inserting ``90-day''; and
(3) by adding at the end the following:
``(e) Notice for Offshoring of Jobs.--In the case of a notice under
subsection (a) regarding the offshoring of jobs, the notice shall
include, in addition to the information otherwise required by the
Secretary with respect to other notices under such subsection,
information concerning--
``(1) the number of jobs affected;
``(2) the location that the jobs are being shifted or
transferred to; and
``(3) the reasons that such shifting or transferring of
jobs is occurring.''.
(c) Technical Amendments.--The Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2101 et seq.) is amended--
(1) by striking ``plant closing or mass layoff'' each place
that such term appears and inserting ``plant closing, mass
layoff, or offshoring of jobs'';
(2) by striking ``closing or layoff'' each place that such
term appears and inserting ``closing, layoff, or offshoring'';
(3) in section 3--
(A) in the section heading by striking ``plant
closings and mass layoffs'' and inserting ``plant
closings, mass layoffs, and offshoring of jobs'';
(B) in subsection (b)(2)(A), by striking ``the
closing or mass layoff'' and inserting ``the closing,
layoff, or offshoring''; and
(C) in subsection (d), by striking ``section 2(a)
(2) or (3)'' and inserting ``paragraph (2), (3), or (9)
of section 2(a)''; and
(4) in section 5(a)(1), in the matter following
subparagraph (B), by striking ``60 days'' and inserting ``90
days''.
(d) Posting of Employee Rights.--The Worker Adjustment and
Retraining Notification Act (29 U.S.C. 2101 et seq.) is amended by
adding at the end the following:

``SEC. 12. POSTING OF NOTICE OF RIGHTS.

``(a) Development.--Not later than 60 days after the date of
enactment of this section, the Secretary of Labor shall develop a
notice of employee rights under this Act for posting by employers.
``(b) Posting.--Each employer shall post in a conspicuous place in
places of employment the notice of the rights of employees as developed
by the Secretary under subsection (a).''.
(e) Annual Report.--The Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2101 et seq.), as amended by subsection
(d), is further amended by adding at the end the following:

``SEC. 13. CONTENTS OF ANNUAL REPORTS BY THE SECRETARY OF LABOR.

``(a) In General.--The Secretary of Labor shall collect and compile
statistics based on the information submitted to the Secretary under
subsections (a)(3) and (e) of section 3.
``(b) Report.--Not later than 120 days after the date on which each
regular session of Congress commences, the Secretary of Labor shall
prepare and submit to the President and the appropriate committees of
Congress a report on the offshoring of jobs (as defined in section
2(a)(9)). Each such report shall include information concerning--
``(1) the number of jobs affected by offshoring;
``(2) the locations to which jobs are being shifted or
transferred;
``(3) the reasons why such shifts and transfers are
occurring; and
``(4) any other relevant data compiled under subsection
(a).''.

Subtitle B--Investment in Infrastructure

CHAPTER 1--TRANSPORTATION INFRASTRUCTURE

SEC. 221. TRANSPORTATION INFRASTRUCTURE FUNDING.

(a) Funding.--
(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this chapter for each of fiscal
years 2005 and 2006 $7,000,000,000, to remain available until
expended.
(2) Distribution.--The Secretary of Transportation, acting
through the Administrator of the Federal Highway
Administration, shall distribute funds made available under
this subsection to States in accordance with section 105 of
title 23, United States Code.
(b) Additional Requirements.--
(1) Nonapplicability of certain provisions.--Funds made
available under this section shall not be subject to--
(A) section 120 of title 23, United States Code; or
(B) any limitation on obligations under any other
provision of law.
(2) Use of funds for near-term projects.--The Secretary of
Transportation shall ensure, to the maximum extent practicable,
that funds made available under this section are directed to
projects that may be obligated in the near term, as determined
by the Secretary of Transportation.

CHAPTER 2--WATER INFRASTRUCTURE

SEC. 231. WATER INFRASTRUCTURE FUNDING.

(a) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator of the Environmental Protection
Agency to make grants to States under--
(1) title VI of the Federal Water Pollution Control Act (33
U.S.C. 1381 et seq.), $3,000,000,000 for each of fiscal years
2005 and 2006; and
(2) section 1452 of the Safe Drinking Water Act (42 U.S.C.
300j-12), $3,000,000,000 for each of fiscal years 2005 and
2006.
(b) Availability of Funds.--Funds transferred under subsection (a)
shall remain available until expended.

CHAPTER 3--RAIL INFRASTRUCTURE

SEC. 241. RAIL INFRASTRUCTURE FUNDING.

(a) Amount for Capital Projects Grants.--There is authorized to be
appropriated to the Secretary of Transportation for each of fiscal
years 2005 and 2006, $1,500,000,000, which shall be available for the
Secretary of Transportation to make grants to States, rail carriers,
and other entities as determined by the Secretary of Transportation for
intercity passenger and freight railroad capital projects in accordance
with this chapter.
(b) Availability of Funds.--Funds transferred under subsection (a)
shall remain available until expended.
(c) Nonapplicability of Certain Provisions.--Funds made available
under this chapter shall not be subject to any limitation on
obligations under any other provision of law.

SEC. 242. GRANT AUTHORITY.

(a) Public Benefit Projects.--The Secretary of Transportation shall
make grants to States, rail carriers, and other entities, as determined
by the Secretary, for intercity passenger and freight railroad capital
projects that provide a public benefit, including projects involving
the following purposes:
(1) Track and track structure rehabilitation, relocation,
improvement, and development.
(2) Railroad safety and security improvements.
(3) Communications and signaling improvements.
(4) Intercity passenger rail equipment acquisition.
(5) Rail station and intermodal facilities development.
(b) Public Benefit Defined.--In this section, the term ``public
benefit'' means a benefit accrued to the public in the form of enhanced
mobility of people or goods, environmental protection or enhancement,
congestion mitigation, enhanced trade and economic development,
improved air quality or land use, more efficient energy use, enhanced
public safety or security, reduction of public expenditures due to
improved transportation efficiency or infrastructure preservation, and
any other positive community effects (as defined by the Secretary after
any consultation with State official and rail carriers that the
Secretary determines appropriate).

SEC. 243. GRANT CONDITIONS FOR RIGHT-OF-WAY PROJECTS.

The Secretary of Transportation shall require as a condition of
making any grant under this chapter that includes the improvement or
use of rights-of-way owned by a railroad that--
(1) a written agreement exist between the applicant and the
railroad regarding such use and ownership, including--
(A) any compensation for such use;
(B) assurances regarding the adequacy of
infrastructure capacity to accommodate both existing
and future freight and passenger operations; and
(C) an assurance by the railroad that collective
bargaining agreements with the railroad's employees
(including terms regulating the contracting of work)
will remain in full force and effect according to their
terms for work performed by the railroad on the
railroad transportation corridor; and
(2) the applicant agrees to comply with--
(A) the standards under section 24312 of title 49,
United States Code, as such section was in effect on
September 1, 2003, with respect to the project in the
same manner that the National Railroad Passenger
Corporation is required to comply with those standards
for construction work financed under an agreement made
under section; and
(B) the protective agreements established under
section 504 of the Railroad Revitalization and
Regulatory Reform Act of 1976 with respect to employees
affected by actions taken in connection with the
project.

SEC. 244. USE OF FUNDS FOR NEAR-TERM PROJECTS.

The Secretary of Transportation shall ensure, to the maximum extent
practicable, that funds made available under this chapter are directed
to projects that may be obligated in the near term, as determined by
the Secretary of Transportation.

SEC. 245. TREATMENT OF RAIL OPERATORS USING GRANT-FUNDED RAIL
INFRASTRUCTURE.

A person that conducts rail operations over rail infrastructure
constructed or improved with funding provided in whole or in part in a
grant made under this chapter--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 20 U.S.C. 231 et seq.); and
(2) shall be considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.) unless such a person
is an operator with respect to commuter rail passenger
transportation (as defined in section 24102(4) of title 49,
United States Code) of a State or local government authority
(as such terms are defined in section 5302 of such title)
eligible to receive financial assistance under section 5307 of
such title, a contractor performing services in connection with
the operations with respect to commuter rail passenger
transportation (as so defined), or the Alaska Railroad or its
contractors.

CHAPTER 4--TRANSIT INFRASTRUCTURE

SEC. 251. TRANSIT.

(a) Authorization of Appropriations.--
(1) Amounts for fiscal years 2005 and 2006.--There is
authorized to be appropriated to the Secretary of
Transportation for each of the fiscal years 2005 and 2006,
$1,750,000,000.
(2) Availability of funds.--Funds appropriated under
paragraph (1) shall remain available until expended.
(b) Distribution of Funds.--
(1) In general.--Of the funds authorized to be appropriated
under subsection (a)--
(A) 50.18 percent shall be available to carry out
section 5307 of title 49, United States Code;
(B) 45 percent shall be available to carry out
section 5309(a)(1) of title 49, United States Code, of
which--
(i) 40 percent shall be available to carry
out subparagraph (A) of such paragraph;
(ii) 40 percent shall be available to carry
out subparagraph (E) of such paragraph; and
(iii) 20 percent shall be available to
carry out subparagraph (F) of such paragraph;
(C) 1.32 percent shall be available to carry out
section 5310 of title 49, United States Code; and
(D) 3.5 percent shall be available to carry out
section 5311 of title 49, United States Code.
(2) Formulas.--Funds made available under subparagraphs
(A), (C), and (D) of paragraph (1) shall be distributed in
accordance with the formulas established under sections 5307,
5310, and 5311, respectively, of title 49, United States Code.
(3) Determination by secretary.--
(A) In general.--The Secretary of Transportation
shall determine the allocation of funds made available
under clauses (i) and (iii) of paragraph (1)(B).
(B) Modernization of existing fixed guideway
systems.--The Secretary of Transportation shall
determine the amount apportioned to each urbanized area
under paragraph (1)(B)(ii) on a pro rata basis in
accordance with the distribution formula established
under section 5337 of title 49, United States Code.
(C) Near term projects.--In allocating funds under
this paragraph, the Secretary of Transportation shall
ensure, to the maximum extent practicable, that funds
are directed to near term projects.
(c) Limitation for Capital Projects.--Funds may be used under this
section only for capital projects.
(d) Inapplicability of Certain Provisions.--Funds distributed under
subsection (b) shall not be subject to sections 5307(e), 5309(h), or
5311(g) of title 49, United States Code.

CHAPTER 5--AVIATION INFRASTRUCTURE

SEC. 261. AUTHORIZATION OF APPROPRIATIONS FOR AVIATION INFRASTRUCTURE.

There is authorized to be appropriated for each of fiscal years
2005 and 2006 to carry out this chapter, $1,500,000,000, to remain
available until expended.

SEC. 262. DISTRIBUTION OF FUNDS.

The Secretary of Transportation, acting through the Administrator
of the Federal Aviation Administration, shall distribute funds made
available under this chapter to public use airports for the purposes
provided under chapter 471 of title 49, United States Code, including
for enhancement of aviation safety, enhancement of aviation capacity,
and defrayal of the cost of security requirements imposed on airport
operators by the Administrator or by the Administrator of the
Transportation Security Administration.

SEC. 263. NONAPPLICABILITY OF CERTAIN LAWS.

Funds made available under this chapter shall not be subject to--
(1) a matching requirement under section 47109 of title 49,
United States Code; or
(2) any limitation on obligation under any other provision
of law.

SEC. 264. USE OF FUNDS FOR NEAR-TERM PROJECTS.

The Secretary of Transportation shall ensure, to the maximum extent
practicable, that funds made available under this chapter are directed
to projects that may be obligated in the near-term, as determined by
the Secretary of Transportation.

CHAPTER 6--BROADBAND ACCESS TAX CREDIT

SEC. 271. EXPENSING OF BROADBAND INTERNET ACCESS EXPENDITURES.

(a) In General.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to itemized deductions for
individuals and corporations) is amended by inserting after section 190
the following new section:

``SEC. 191. BROADBAND EXPENDITURES.

``(a) Treatment of Expenditures.--
``(1) In general.--A taxpayer may elect to treat any
qualified broadband expenditure which is paid or incurred by
the taxpayer as an expense which is not chargeable to capital
account. Any expenditure which is so treated shall be allowed
as a deduction.
``(2) Election.--An election under paragraph (1) shall be
made at such time and in such manner as the Secretary may
prescribe by regulation.
``(b) Qualified Broadband Expenditures.--For purposes of this
section--
``(1) In general.--The term `qualified broadband
expenditure' means, with respect to any taxable year, any
direct or indirect costs incurred and properly taken into
account with respect to--
``(A) the purchase or installation of qualified
equipment (including any upgrades thereto), and
``(B) the connection of such qualified equipment to
any qualified subscriber.
``(2) Certain satellite expenditures excluded.--Such term
shall not include any costs incurred with respect to the
launching of any satellite equipment.
``(3) Leased equipment.--Such term shall include so much of
the purchase price paid by the lessor of qualified equipment
subject to a lease described in subsection (c)(2)(B) as is
attributable to expenditures incurred by the lessee which would
otherwise be described in paragraph (1).
``(4) Limitation with regard to current generation
broadband services.--Only 50 percent of the amounts taken into
account under paragraph (1) with respect to qualified equipment
through which current generation broadband services are
provided shall be treated as qualified broadband expenditures.
``(c) When Expenditures Taken Into Account.--For purposes of this
section--
``(1) In general.--Qualified broadband expenditures with
respect to qualified equipment shall be taken into account with
respect to the first taxable year in which--
``(A) current generation broadband services are
provided through such equipment to qualified
subscribers, or
``(B) next generation broadband services are
provided through such equipment to qualified
subscribers.
``(2) Limitation.--
``(A) In general.--Qualified expenditures shall be
taken into account under paragraph (1) only with
respect to qualified equipment--
``(i) the original use of which commences
with the taxpayer, and
``(ii) which is placed in service, after
the date of the enactment of this Act.
``(B) Sale-leasebacks.--For purposes of
subparagraph (A), if property--
``(i) is originally placed in service after
the date of the enactment of this Act by any
person, and
``(ii) sold and leased back by such person
within 3 months after the date such property
was originally placed in service,
such property shall be treated as originally placed in
service not earlier than the date on which such
property is used under the leaseback referred to in
clause (ii).
``(d) Special Allocation Rules.--
``(1) Current generation broadband services.--For purposes
of determining the amount of qualified broadband expenditures
under subsection (a)(1) with respect to qualified equipment
through which current generation broadband services are
provided, if the qualified equipment is capable of serving both
qualified subscribers and other subscribers, the qualified
broadband expenditures shall be multiplied by a fraction--
``(A) the numerator of which is the sum of the
number of potential qualified subscribers within the
rural areas and the underserved areas which the
equipment is capable of serving with current generation
broadband services, and
``(B) the denominator of which is the total
potential subscriber population of the area which the
equipment is capable of serving with current generation
broadband services.
``(2) Next generation broadband services.--For purposes of
determining the amount of qualified broadband expenditures
under subsection (a)(1) with respect to qualified equipment
through which next generation broadband services are provided,
if the qualified equipment is capable of serving both qualified
subscribers and other subscribers, the qualified expenditures
shall be multiplied by a fraction--
``(A) the numerator of which is the sum of--
``(i) the number of potential qualified
subscribers within the rural areas and
underserved areas, plus
``(ii) the number of potential qualified
subscribers within the area consisting only of
residential subscribers not described in clause
(i),
which the equipment is capable of serving with next
generation broadband services, and
``(B) the denominator of which is the total
potential subscriber population of the area which the
equipment is capable of serving with next generation
broadband services.
``(e) Definitions.--For purposes of this section--
``(1) Antenna.--The term `antenna' means any device used to
transmit or receive signals through the electromagnetic
spectrum, including satellite equipment.
``(2) Cable operator.--The term `cable operator' has the
meaning given such term by section 602(5) of the Communications
Act of 1934 (47 U.S.C. 522(5)).
``(3) Commercial mobile service carrier.--The term
`commercial mobile service carrier' means any person authorized
to provide commercial mobile radio service as defined in
section 20.3 of title 47, Code of Federal Regulations.
``(4) Current generation broadband service.--The term
`current generation broadband service' means the transmission
of signals at a rate of at least 1,000,000 bits per second to
the subscriber and at least 128,000 bits per second from the
subscriber.
``(5) Multiplexing or demultiplexing.--The term
`multiplexing' means the transmission of 2 or more signals over
a single channel, and the term `demultiplexing' means the
separation of 2 or more signals previously combined by
compatible multiplexing equipment.
``(6) Next generation broadband service.--The term `next
generation broadband service' means the transmission of signals
at a rate of at least 22,000,000 bits per second to the
subscriber and at least 5,000,000 bits per second from the
subscriber.
``(7) Nonresidential subscriber.--The term `nonresidential
subscriber' means any person who purchases broadband services
which are delivered to the permanent place of business of such
person.
``(8) Open video system operator.--The term `open video
system operator' means any person authorized to provide service
under section 653 of the Communications Act of 1934 (47 U.S.C.
573).
``(9) Other wireless carrier.--The term `other wireless
carrier' means any person (other than a telecommunications
carrier, commercial mobile service carrier, cable operator,
open video system operator, or satellite carrier) providing
current generation broadband services or next generation
broadband service to subscribers through the radio transmission
of energy.
``(10) Packet switching.--The term `packet switching' means
controlling or routing the path of any digitized transmission
signal which is assembled into packets or cells.
``(11) Provider.--The term `provider' means, with respect
to any qualified equipment--
``(A) a cable operator,
``(B) a commercial mobile service carrier,
``(C) an open video system operator,
``(D) a satellite carrier,
``(E) a telecommunications carrier, or
``(F) any other wireless carrier,
providing current generation broadband services or next
generation broadband services to subscribers through such
qualified equipment.
``(12) Provision of services.--A provider shall be treated
as providing services to 1 or more subscribers if--
``(A) such a subscriber has been passed by the
provider's equipment and can be connected to such
equipment for a standard connection fee,
``(B) the provider is physically able to deliver
current generation broadband services or next
generation broadband services, as applicable, to such a
subscriber without making more than an insignificant
investment with respect to such subscriber,
``(C) the provider has made reasonable efforts to
make such subscribers aware of the availability of such
services,
``(D) such services have been purchased by 1 or
more such subscribers, and
``(E) such services are made available to such
subscribers at average prices comparable to those at
which the provider makes available similar services in
any areas in which the provider makes available such
services.
``(13) Qualified equipment.--
``(A) In general.--The term `qualified equipment'
means equipment which provides current generation
broadband services or next generation broadband
services--
``(i) at least a majority of the time
during periods of maximum demand to each
subscriber who is utilizing such services, and
``(ii) in a manner substantially the same
as such services are provided by the provider
to subscribers through equipment with respect
to which no deduction is allowed under
subsection (a)(1).
``(B) Only certain investment taken into account.--
Except as provided in subparagraph (C) or (D),
equipment shall be taken into account under
subparagraph (A) only to the extent it--
``(i) extends from the last point of
switching to the outside of the unit, building,
dwelling, or office owned or leased by a
subscriber in the case of a telecommunications
carrier,
``(ii) extends from the customer side of
the mobile telephone switching office to a
transmission/receive antenna (including such
antenna) owned or leased by a subscriber in the
case of a commercial mobile service carrier,
``(iii) extends from the customer side of
the headend to the outside of the unit,
building, dwelling, or office owned or leased
by a subscriber in the case of a cable operator
or open video system operator, or
``(iv) extends from a transmission/receive
antenna (including such antenna) which
transmits and receives signals to or from
multiple subscribers, to a transmission/receive
antenna (including such antenna) on the outside
of the unit, building, dwelling, or office
owned or leased by a subscriber in the case of
a satellite carrier or other wireless carrier,
unless such other wireless carrier is also a
telecommunications carrier.
``(C) Packet switching equipment.--Packet switching
equipment, regardless of location, shall be taken into
account under subparagraph (A) only if it is deployed
in connection with equipment described in subparagraph
(B) and is uniquely designed to perform the function of
packet switching for current generation broadband
services or next generation broadband services, but
only if such packet switching is the last in a series
of such functions performed in the transmission of a
signal to a subscriber or the first in a series of such
functions performed in the transmission of a signal
from a subscriber.
``(D) Multiplexing and demultiplexing equipment.--
Multiplexing and demultiplexing equipment shall be
taken into account under subparagraph (A) only to the
extent it is deployed in connection with equipment
described in subparagraph (B) and is uniquely designed
to perform the function of multiplexing and
demultiplexing packets or cells of data and making
associated application adaptions, but only if such
multiplexing or demultiplexing equipment is located
between packet switching equipment described in
subparagraph (C) and the subscriber's premises.
``(14) Qualified subscriber.--The term `qualified
subscriber' means--
``(A) with respect to the provision of current
generation broadband services--
``(i) any nonresidential subscriber
maintaining a permanent place of business in a
rural area or underserved area, or
``(ii) any residential subscriber residing
in a dwelling located in a rural area or
underserved area which is not a saturated
market, and
``(B) with respect to the provision of next
generation broadband services--
``(i) any nonresidential subscriber
maintaining a permanent place of business in a
rural area or underserved area, or
``(ii) any residential subscriber.
``(15) Residential subscriber.--The term `residential
subscriber' means any individual who purchases broadband
services which are delivered to such individual's dwelling.
``(16) Rural area.--The term `rural area' means any census
tract which--
``(A) is not within 10 miles of any incorporated or
census designated place containing more than 25,000
people, and
``(B) is not within a county or county equivalent
which has an overall population density of more than
500 people per square mile of land.
``(17) Rural subscriber.--The term `rural subscriber' means
any residential subscriber residing in a dwelling located in a
rural area or nonresidential subscriber maintaining a permanent
place of business located in a rural area.
``(18) Satellite carrier.--The term `satellite carrier'
means any person using the facilities of a satellite or
satellite service licensed by the Federal Communications
Commission and operating in the Fixed-Satellite Service under
part 25 of title 47 of the Code of Federal Regulations or the
Direct Broadcast Satellite Service under part 100 of title 47
of such Code to establish and operate a channel of
communications for distribution of signals, and owning or
leasing a capacity or service on a satellite in order to
provide such point-to-multipoint distribution.
``(19) Saturated market.--The term `saturated market' means
any census tract in which, as of the date of the enactment of
this section--
``(A) current generation broadband services have
been provided by a single provider to 85 percent or
more of the total number of potential residential
subscribers residing in dwellings located within such
census tract, and
``(B) such services can be utilized--
``(i) at least a majority of the time
during periods of maximum demand by each such
subscriber who is utilizing such services, and
``(ii) in a manner substantially the same
as such services are provided by the provider
to subscribers through equipment with respect
to which no deduction is allowed under
subsection (a)(1).
``(20) Subscriber.--The term `subscriber' means any person
who purchases current generation broadband services or next
generation broadband services.
``(21) Telecommunications carrier.--The term
`telecommunications carrier' has the meaning given such term by
section 3(44) of the Communications Act of 1934 (47 U.S.C.
153(44)), but--
``(A) includes all members of an affiliated group
of which a telecommunications carrier is a member, and
``(B) does not include a commercial mobile service
carrier.
``(22) Total potential subscriber population.--The term
`total potential subscriber population' means, with respect to
any area and based on the most recent census data, the total
number of potential residential subscribers residing in
dwellings located in such area and potential nonresidential
subscribers maintaining permanent places of business located in
such area.
``(23) Underserved area.--The term `underserved area'
means--
``(A) any census tract which is located in--
``(i) an empowerment zone or enterprise
community designated under section 1391, or
``(ii) the District of Columbia Enterprise
Zone established under section 1400, or
``(B) any census tract--
``(i) the poverty level of which is at
least 30 percent (based on the most recent
census data), and
``(ii) the median family income of which
does not exceed--
``(I) in the case of a census tract
located in a metropolitan statistical
area, 70 percent of the greater of the
metropolitan area median family income
or the statewide median family income,
and
``(II) in the case of a census
tract located in a nonmetropolitan
statistical area, 70 percent of the
nonmetropolitan statewide median family
income.
``(24) Underserved subscriber.--The term `underserved
subscriber' means any residential subscriber residing in a
dwelling located in an underserved area or nonresidential
subscriber maintaining a permanent place of business located in
an underserved area.
``(f) Special Rules.--
``(1) Property used outside the united states, etc., not
qualified.--No expenditures shall be taken into account under
subsection (a)(1) with respect to the portion of the cost of
any property referred to in section 50(b) or with respect to
the portion of the cost of any property specified in an
election under section 179.
``(2) Basis reduction.--
``(A) In general.--For purposes of this title, the
basis of any property shall be reduced by the portion
of the cost of such property taken into account under
subsection (a)(1).
``(B) Ordinary income recapture.--For purposes of
section 1245, the amount of the deduction allowable
under subsection (a)(1) with respect to any property
which is of a character subject to the allowance for
depreciation shall be treated as a deduction allowed
for depreciation under section 167.
``(3) Coordination with section 38.--No credit shall be
allowed under section 38 with respect to any amount for which a
deduction is allowed under subsection (a)(1).''.
(b) Special Rule for Mutual or Cooperative Telephone Companies.--
Section 512(b) of the Internal Revenue Code of 1986 (relating to
modifications) is amended--
(1) by redesignating paragraph (18) as added by section
702(a) of the American Jobs Creation Act of 2004 as paragraph
(19), and
(2) by adding at the end the following new paragraph:
``(20) Special rule for mutual or cooperative telephone
companies.--A mutual or cooperative telephone company which for
the taxable year satisfies the requirements of section
501(c)(12)(A) may elect to reduce its unrelated business
taxable income for such year, if any, by an amount that does
not exceed the qualified broadband expenditures which would be
taken into account under section 191 for such year by such
company if such company was not exempt from taxation. Any
amount which is allowed as a deduction under this paragraph
shall not be allowed as a deduction under section 191 and the
basis of any property to which this paragraph applies shall be
reduced under section 1016(a)(32).''.
(c) Conforming Amendments.--
(1) Section 263(a)(1) of the Internal Revenue Code of 1986
(relating to capital expenditures) is amended by striking
``or'' at the end of subparagraph (H), by striking the period
at the end of subparagraph (I) and inserting ``, or'', and by
adding at the end the following new subparagraph:
``(J) expenditures for which a deduction is allowed
under section 191.''.
(2) Section 1016(a) of such Code is amended by striking
``and'' at the end of paragraph (30), by striking the period at
the end of paragraph (31) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(32) to the extent provided in section 191(f)(2).''.
(3) The table of sections for part VI of subchapter A of
chapter 1 of such Code is amended by inserting after the item
relating to section 190 the following new item:

``Sec. 191. Broadband expenditures.''.
(d) Designation of Census Tracts.--
(1) In general.--The Secretary of the Treasury shall, not
later than 90 days after the date of the enactment of this Act,
designate and publish those census tracts meeting the criteria
described in paragraphs (16), (22), and (23) of section 191(e)
of the Internal Revenue Code of 1986 (as added by this
section). In making such designations, the Secretary of the
Treasury shall consult with such other departments and agencies
as the Secretary determines appropriate.
(2) Saturated market.--
(A) In general.--For purposes of designating and
publishing those census tracts meeting the criteria
described in subsection (e)(19) of such section 191--
(i) the Secretary of the Treasury shall
prescribe not later than 30 days after the date
of the enactment of this Act the form upon
which any provider which takes the position
that it meets such criteria with respect to any
census tract shall submit a list of such census
tracts (and any other information required by
the Secretary) not later than 60 days after the
date of the publication of such form, and
(ii) the Secretary of the Treasury shall
publish an aggregate list of such census tracts
and the applicable providers not later than 30
days after the last date such submissions are
allowed under clause (i).
(B) No subsequent lists required.--The Secretary of
the Treasury shall not be required to publish any list
of census tracts meeting such criteria subsequent to
the list described in subparagraph (A)(ii).
(e) Other Regulatory Matters.--
(1) Prohibition.--No Federal or State agency or
instrumentality shall adopt regulations or ratemaking
procedures that would have the effect of eliminating or
reducing any deduction or portion thereof allowed under section
191 of the Internal Revenue Code of 1986 (as added by this
section) or otherwise subverting the purpose of this section.
(2) Treasury regulatory authority.--It is the intent of
Congress in providing the election to deduct qualified
broadband expenditures under section 191 of the Internal
Revenue Code of 1986 (as added by this section) to provide
incentives for the purchase, installation, and connection of
equipment and facilities offering expanded broadband access to
the Internet for users in certain low income and rural areas of
the United States, as well as to residential users nationwide,
in a manner that maintains competitive neutrality among the
various classes of providers of broadband services.
Accordingly, the Secretary of the Treasury shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of section 191 of such Code, including--
(A) regulations to determine how and when a
taxpayer that incurs qualified broadband expenditures
satisfies the requirements of section 191 of such Code
to provide broadband services, and
(B) regulations describing the information,
records, and data taxpayers are required to provide the
Secretary to substantiate compliance with the
requirements of section 191 of such Code.
(f) Effective Date.--The amendments made by this section shall
apply to expenditures incurred after the date of the enactment of this
Act and before the date which is 60 months after the date of the
enactment of this Act.

CHAPTER 7--RESEARCH AND DEVELOPMENT TAX CREDIT

SEC. 281. FINDINGS.

Congress finds the following:
(1) Research and development performed in the United States
results in quality jobs, better and safer products, increased
ownership of technology-based intellectual property, and higher
productivity in the United States.
(2) Since 1994, private sector research and development
employment has grown at a faster rate than overall private
sector employment in the United States. From 1994 to 2000,
there was an average annual growth rate of 5.4 percent in
research and development employment, compared with 2.7 percent
in total employment.
(3) The extent to which companies perform and increase
research and development activities in the United States is in
part dependent on Federal tax policy.
(4) The private sector performed most of the Nation's
research and development and accounted for more than two-thirds
of total research and development performance in 2003. Of the
$194,000,000,000 in industrial research and development
performed in 2003, more than 90 percent was funded by industry.
(5) Many of the countries with which the United States
competes have introduced new or revised national plans for
science, technology, and innovation policy, and a growing
number of countries have established targets for increased
research and development spending. Virtually all countries are
seeking ways to enhance the quality and efficiency of public
research, stimulate business investments in research and
development, and strengthen linkages between the public and
private sectors.
(6) Direct government support to business research and
development has declined, both in absolute terms and as a share
of business research and development, and greater emphasis is
being placed on indirect measures, such as tax incentives for
research and development.
(7) Congress should make permanent a research and
development credit that provides a meaningful incentive to all
types of taxpayers.

SEC. 282. PERMANENT EXTENSION OF RESEARCH CREDIT.

(a) In General.--Section 41 of the Internal Revenue Code of 1986
(relating to credit for increasing research activities) is amended by
striking subsection (h).
(b) Conforming Amendment.--Paragraph (1) of section 45C(b) of such
Code is amended by striking subparagraph (D).
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act, in taxable years ending after such date.

SEC. 283. INCREASE IN RATES OF ALTERNATIVE INCREMENTAL CREDIT.

(a) In General.--Subparagraph (A) of section 41(c)(4) of the
Internal Revenue Code of 1986 (relating to election of alternative
incremental credit) is amended--
(1) by striking ``2.65 percent'' and inserting ``3
percent'',
(2) by striking ``3.2 percent'' and inserting ``4
percent'', and
(3) by striking ``3.75 percent'' and inserting ``5
percent''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.

SEC. 284. ALTERNATIVE SIMPLIFIED CREDIT FOR QUALIFIED RESEARCH
EXPENSES.

(a) In General.--Subsection (c) of section 41 of the Internal
Revenue Code of 1986 (relating to base amount) is amended by
redesignating paragraphs (5) and (6) as paragraphs (6) and (7),
respectively, and by inserting after paragraph (4) the following new
paragraph:
``(5) Election of alternative simplified credit.--
``(A) In general.--At the election of the taxpayer,
the credit determined under subsection (a)(1) shall be
equal to 12 percent of so much of the qualified
research expenses for the taxable year as exceeds 50
percent of the average qualified research expenses for
the 3 taxable years preceding the taxable year for
which the credit is being determined.
``(B) Special rule in case of no qualified research
expenses in any of 3 preceding taxable years.--
``(i) Taxpayers to which subparagraph
applies.--The credit under this paragraph shall
be determined under this subparagraph if the
taxpayer has no qualified research expenses in
any 1 of the 3 taxable years preceding the
taxable year for which the credit is being
determined.
``(ii) Credit rate.--The credit determined
under this subparagraph shall be equal to 6
percent of the qualified research expenses for
the taxable year.
``(C) Election.--An election under this paragraph
shall apply to the taxable year for which made and all
succeeding taxable years unless revoked with the
consent of the Secretary. An election under this
paragraph may not be made for any taxable year to which
an election under paragraph (4) applies.''.
(b) Coordination With Election of Alternative Incremental Credit.--
(1) In general.--Section 41(c)(4)(B) of the Internal
Revenue Code of 1986 (relating to election) is amended by
adding at the end the following: ``An election under this
paragraph may not be made for any taxable year to which an
election under paragraph (5) applies.''.
(2) Transition rule.--In the case of an election under
section 41(c)(4) of the Internal Revenue Code of 1986 which
applies to the taxable year which includes the date of the
enactment of this Act, such election shall be treated as
revoked with the consent of the Secretary of the Treasury if
the taxpayer makes an election under section 41(c)(5) of such
Code (as added by subsection (a)) for such year.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.

SEC. 285. EXPANSION OF RESEARCH CREDIT.

(a) Credit for Expenses Attributable to Certain Collaborative
Research Consortia.--
(1) In general.--Section 41(a) of the Internal Revenue Code
of 1986 (relating to credit for increasing research activities)
is amended by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(3) 20 percent of the amounts paid or incurred by the
taxpayer in carrying on any trade or business of the taxpayer
during the taxable year (including as contributions) to a
research consortium.''.
(2) Research consortium defined.--Section 41(f) of such
Code (relating to special rules) is amended by adding at the
end the following new paragraph:
``(6) Research consortium.--
``(A) In general.--The term `research consortium'
means any organization--
``(i) which is--
``(I) described in section
501(c)(3) or 501(c)(6) and is exempt
from tax under section 501(a) and is
organized and operated primarily to
conduct research, or
``(II) organized and operated
primarily to conduct research in the
public interest (within the meaning of
section 501(c)(3)),
``(ii) which is not a private foundation,
``(iii) to which at least 5 unrelated
persons paid or incurred during the calendar
year in which the taxable year of the
organization begins amounts (including as
contributions) to such organization for
research, and
``(iv) to which no single person paid or
incurred (including as contributions) during
such calendar year an amount equal to more than
50 percent of the total amounts received by
such organization during such calendar year for
research.
``(B) Treatment of persons.--All persons treated as
a single employer under subsection (a) or (b) of
section 52 shall be treated as related persons for
purposes of subparagraph (A)(iii) and as a single
person for purposes of subparagraph (A)(iv).''.
(3) Conforming amendment.--Section 41(b)(3)(C)(ii) of such
Code is amended by inserting ``(other than a research
consortium)'' after ``organization''.
(b) Repeal of Limitation on Contract Research Expenses Paid to
Small Businesses, Universities, and Federal Laboratories.--Section
41(b)(3) of the Internal Revenue Code of 1986 (relating to contract
research expenses) is amended by adding at the end the following new
subparagraph:
``(D) Amounts paid to eligible small businesses,
universities, and federal laboratories.--
``(i) In general.--In the case of amounts
paid by the taxpayer to--
``(I) an eligible small business,
``(II) an institution of higher
education (as defined in section
3304(f)), or
``(III) an organization which is a
Federal laboratory,
for qualified research, subparagraph (A) shall
be applied by substituting `100 percent' for
`65 percent'.
``(ii) Eligible small business.--For
purposes of this subparagraph, the term
`eligible small business' means a small
business with respect to which the taxpayer
does not own (within the meaning of section
318) 50 percent or more of--
``(I) in the case of a corporation,
the outstanding stock of the
corporation (either by vote or value),
and
``(II) in the case of a small
business which is not a corporation,
the capital and profits interests of
the small business.
``(iii) Small business.--For purposes of
this subparagraph--
``(I) In general.--The term `small
business' means, with respect to any
calendar year, any person if the annual
average number of employees employed by
such person during either of the 2
preceding calendar years was 500 or
fewer. For purposes of the preceding
sentence, a preceding calendar year may
be taken into account only if the
person was in existence throughout the
year.
``(II) Startups, controlled groups,
and predecessors.--Rules similar to the
rules of subparagraphs (B) and (D) of
section 220(c)(4) shall apply for
purposes of this clause.
``(iv) Federal laboratory.--For purposes of
this subparagraph, the term `Federal
laboratory' has the meaning given such term by
section 4(6) of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3703(6)), as
in effect on the date of the enactment of this
subparagraph.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act, in taxable years ending after such date.

Subtitle C--Technology Programs

SEC. 291. AUTHORIZATIONS OF APPROPRIATIONS FOR THE ADVANCED TECHNOLOGY
PROGRAM AND THE MANUFACTURING EXTENSION PARTNERSHIP
PROGRAM.

(a) Advanced Technology Program.--
(1) Findings.--Congress makes the following findings:
(A) The Advanced Technology Program (ATP) has
played an important role in helping United States
companies develop new, breakthrough technologies. ATP
has funded research ranging from cancer vaccines, to
hi-tech flexible displays, to composite materials, to
fuel cells, all of which are the kinds of technological
advances that give the United States a competitive
advantage globally.
(B) The National Academy of Science has found it to
be an effective program that could use more funding
wisely, and the National Association of Manufacturers
(NAM), the Biotechnology Industry Organization (BIO),
the Industrial Research Institute, the Alliance for
Science and Technology Research in America, and the
American Chemical Society support ATP.
(C) Businesses need this type of program more than
ever as venture capital funds have become more scarce
in the current economy. ATP bridges this gap between
the research lab and market capital, facilitating the
critical transfer of technology to the private sector
that leads to the development of products and services
that make use of new, technological breakthroughs.
(D) Not only does ATP promote economic security and
global competitiveness for the nation as a whole, it is
an important program for generating jobs domestically.
Last year nearly 80 percent of ATP awards went to small
businesses, an essential job-creating sector in the
United States economy.
(E) ATP is also vital to the homeland security of
the United States. ATP has funded many projects in
detection, preparedness, prevention and response with
significant applications for homeland security. With
continued financial support through ATP to develop
these projects and their security applications, the
United States will become more secure.
(F) Despite the importance and success of ATP,
current funding levels do not meet the demand. Over
1,000 proposals for ATP funding that were submitted in
2002 yielded enough high quality projects for the ATP
funding that was available in both fiscal years 2002
and 2003. The 870 applications for ATP funding received
in fiscal year 2004 made the second highest number of
applications for ATP funding that were received in any
fiscal year, but funding was only available for 59
awards. No funding for new awards is available in
fiscal year 2005.
(G) According to the 2004 annual report on the ATP,
returns from just 41 of the 736 ATP projects have
exceeded $17,000,000,000 in economic benefits, more
than 8 times the amount of money spent on all 736
projects.
(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary of Commerce for the
Advanced Technology Program of the National Institute of
Standards and Technology--
(A) $247,200,000 for fiscal year 2005;
(B) $254,616,000 for fiscal year 2006;
(C) $262,254,000 for fiscal year 2007; and
(D) $270,122,000 for fiscal year 2008.
(b) Manufacturing Extension Partnership Program.--
(1) Findings.--Congress makes the following findings:
(A) Small- and medium-sized manufacturers in the
United States employ 7,000,000 people and contribute
$711,000,000,000, or 7 percent of the Gross Domestic
Product to the United States economy. The Hollings
Manufacturing Extension Partnership (MEP) Program
supports a network of locally run centers that provide
technical advice and consulting to these firms in all
fifty States and Puerto Rico. Since its inception, the
Hollings MEP Program has assisted 149,000 of the
380,000 small and medium-sized manufacturers in the
United States.
(B) The Hollings MEP Program is a proven program.
Studies show that Hollings MEP Program manufacturers
have four times more productivity growth than non-MEP
firms, and the program has proven to lead to increased
sales, increased capital investment, cost savings and
the creation or retention of jobs in the United States.
(C) The Hollings MEP Program is more important
today than ever as the Nation faces a looming current
account deficit. The United States has lost over
880,000 manufacturing jobs during 2003 and 2004. Such
manufacturing jobs pay on average 19 percent higher
wages than the industry average.
(D) The Hollings MEP Program is not just about
economic security. Manufacturers with fewer than 500
employees comprise more than 80 percent of the
suppliers in key defense sectors. Helping such
manufacturers helps the national security of the United
States.
(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary of Commerce for the
Hollings Manufacturing Extension Partnership Program of the
National Institute of Standards and Technology--
(A) $110,210,000 for fiscal year 2005;
(B) $113,516,000 for fiscal year 2006;
(C) $116,921,000 for fiscal year 2007; and
(D) $120,429,000 for fiscal year 2008.
(3) Manufacturing extension partnership program defined.--
In this subsection, the term ``Hollings Manufacturing Extension
Partnership Program'' means the program of Hollings
Manufacturing Extension Partnership carried out by the National
Institute of Standards and Technology under section 26 of the
National Institute of Standards and Technology Act (15 U.S.C.
278l), as provided in part 292 of title 15, Code of Federal
Regulations.

SEC. 292. SENSE OF THE SENATE PROMOTING SCIENCE AND TECHNOLOGY FUNDING
FOR A STRONGER ECONOMIC FUTURE.

(a) Findings.--The Senate makes the following findings:
(1) Leading economists have consistently attributed more
than 50 percent of the growth in the economy of the United
States to scientific and technological innovation. The economic
future of the United States, thus, depends on the United States
remaining the world leader in science and technology.
(2) If the United States loses its leadership in science
and technology, its capacity for economic growth and high-wage
job creation will soon atrophy, with deleterious effects on the
national security of the United States. In 2001, the Hart-
Rudman Commission on National Security for the 21st Century
characterized the failure of the United States to invest in
science and to reform science and mathematics education as the
second biggest threat to national security, stating that
``[s]econd only to a weapon of mass destruction detonating in
an American city, we can think of nothing more dangerous than a
failure to manage properly science, technology, and education
for the common good over the next quarter century''.
(3) The United States has reaped enormous economic benefits
from being the first country to lead in the development of the
Internet and the harnessing of biotechnology. These
developments, though, are far from being the last technological
revolutions to influence the economy of the United States.
Technological changes that promise major economic effects are
now being made in areas such as--
(A) microelectronics, including the continued
miniaturization of electronic devices and the
increasingly widespread diffusion of data processing
power;
(B) high-end supercomputing;
(C) telecommunications technologies;
(C) artificial materials, including materials in
which the structure has been designed and built at the
atomic or molecular level, the essence of
nanotechnology;
(D) robotics; and
(E) new energy technologies, particular including
renewable energy technologies that are as inexpensive
as traditional fossil sources of energy, technologies
using hydrogen as an energy carrier, and technologies
for energy efficiencies.
(4) Because of the interconnected nature of modern science
and technology, advances in one field depend on research
results in other, seemingly unrelated fields. Biomedical
science has been consistently shown to rely on advances in
fields such as chemistry, materials science, mathematics,
computer science, and physics. Without basic advances in
chemistry, computer science, and mathematics, the sequencing of
the human genome could not have been successfully undertaken.
(5) In the 60 years since World War II, other countries and
regions of the world have built science and technology
capabilities that rival those of the United States today, or
that could rival such capabilities of the United States in the
future. The governments of China, India, Japan, and the
countries of the European Union have all targeted significant
advancements in research and innovation as central elements of
the plans for future national and regional economic prosperity.
(6) President George W. Bush has largely ignored this
challenge, proposing budgets that have under-funded or
terminated key programs promoting United States scientific and
technological strength, including cuts to--
(A) basic and applied research in the Department of
Defense;
(B) agricultural research;
(C) transportation research; and
(D) fundamental research in the physical sciences
and engineering at the Department of Energy and
elsewhere.
(7) For other programs that have been proposed for small
increases, such as the National Science Foundation, the amount
of funding provided to individual grantees is well below the
amounts that would lead to optimal scientific productivity and
continued United States leadership in science and technology.
In fiscal year 2004, the National Science Foundation's
stringent peer review evaluation process judged approximately
12,000 out of some 40,000 proposals as ``very good to
excellent'' or ``excellent,'' yet, due to budget constraints,
only 56 percent of such proposals were funded.
(8) The National Science Foundation and the Office of
Science in the Department of Energy are among the greatest
assets of the United States for the advancement of science,
mathematical, engineering, and technology research and
education. Although the National Science Foundation accounts
for only 4 percent of Federal research and development
spending, it provides nearly 50 percent of all Federal support
for non-medical basic research conducted in United States
colleges and universities. Similarly, the Office of Science of
the Department of Energy funds over half of all university
research in disciplines such as physics and materials science,
and has played a crucial role in national science and
technology initiatives such as advancing high-performance
computing and the sequencing of the human genome. Both the
National Science Foundation and the Office of Science fund
research in new frontiers of scientific inquiry and contribute
to creating a highly skilled, competitive workforce in science
and engineering.
(9) President Bush has also consistently proposed
terminating the Advanced Technology Program at the Department
of Commerce, which helps stimulate companies to participate in
high-risk, high-payoff research and development and is perhaps
one of the most successful programs in directly stimulating
industrial innovation in the United States. Projects supported
by the Advanced Technology Program span a broad range of key
technology areas, such as oil exploration, automobile
manufacturing, and new medical diagnostic and therapeutic
technologies and investments made by the program accelerate the
development process for innovative technologies that promise
significant commercial payoff and widespread benefits.
(10) The continual cycle of basic research, applied
research, and development gives rise to new products and
processes, new ideas and understanding, and new researchers and
educators. Each link in this chain depends on the others. Basic
research produces the fundamental understandings that underpin
applications and the development process. The resulting
technologies and innovations create economic growth through new
products and job creation and stimulate new thinking and
advances in scientific instrumentation, which in turn stimulate
new inquiries that lead to new fundamental research. All of
this activity improves the quality of life in the United
States, and when adequately supported, contributes to the
continued leadership of the United States in science and
technology.
(11) A revitalized science and technology policy focused on
advancing all of the links of this chain, from basic research
through technology deployment, is necessary if the United
States is to maintain its technological preeminence over the
next decade and beyond. Applications stemming from basic
research can take over 20 years to evolve into next generation
technologies. Inadequate funding of basic research may not seem
acute today, but 20 years from now, it will be extremely
difficult to correct an inability of the United States to
compete scientifically and technologically, which could be
caused by inadequate funding now.
(12) In order to ensure strength in these areas, it is
necessary for the United States Government to ensure that
scientists and technology experts in the United States receive
the best education possible. After the Russians launched
Sputnik, Congress passed the National Defense Education Act of
1958 (Public Law 85-864), which declared ``an educational
emergency'' and led to the more than doubling of Federal
expenditures for education. The programs authorized under that
Act helped the United States to improve rapidly in the areas of
science and technology, and led to United States dominance in
the arms race and the global economy.
(13) The United States would be well served by the
enactment of a new National Defense Education Act. Third in the
world in 1975, America now ranks 15th in the development of new
scientists and engineers. Today, India and China annually
produce 10 times as many new engineers as the United States.
Out of over 15,000,000 college students in the United States,
fewer than 400,000 individuals graduate with a bachelor's
degree in math, science, engineering, or technology each year,
and only 75,000 postgraduate students go on to obtain a
master's degree in math, science, engineering, or technology.
(b) Sense of the Senate.--It is the sense of the Senate that--
(1) Congress and the President should direct significant
new investments in the National Science Foundation, the Office
of Science at the Department of Energy, the National Institutes
of Health, and the National Institute of Standards and
Technology to increase federally funded research in basic
science and technology so that the United States can better
compete in the international economy; and
(2) Congress and the President should direct significant
new investments into the enhancement of elementary and
secondary education programs related to math, science, and
technology and substantially expand access to postsecondary
education for United States students seeking degrees in math,
science, and technology.

TITLE III--FAIR TRADE AND COMPETITIVENESS

Subtitle A--Trade Enforcement Enhancement

SEC. 311. IDENTIFICATION OF TRADE EXPANSION PRIORITIES.

Section 310 of the Trade Act of 1974 (19 U.S.C. 2420) is amended to
read as follows:

``SEC. 310. IDENTIFICATION OF TRADE EXPANSION PRIORITIES.

``(a) Identification.--
``(1) Identification and report.--Within 30 days after the
submission in each of calendar year 2005 through 2009 of the
report required by section 181(b), the Trade Representative
shall--
``(A) review United States trade expansion
priorities;
``(B) identify priority foreign country practices,
the elimination of which is likely to have the most
significant potential to increase United States
exports, either directly or through the establishment
of a beneficial precedent; and
``(C) submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House
of Representatives and publish in the Federal Register
a report on the priority foreign country practices
identified.
``(2) Factors.--In identifying priority foreign country
practices under paragraph (1), the Trade Representative shall
take into account all relevant factors, including--
``(A) the major barriers and trade distorting
practices described in the National Trade Estimate
Report required under section 181(b);
``(B) the trade agreements to which a foreign
country is a party and its compliance with those
agreements;
``(C) the medium- and long-term implications of
foreign government procurement plans; and
``(D) the international competitive position and
export potential of United States products and
services.
``(3) Contents of report.--The Trade Representative may
include in the report, if appropriate--
``(A) a description of foreign country practices
that may in the future warrant identification as
priority foreign country practices; and
``(B) a statement about other foreign country
practices that were not identified because they are
already being addressed by provisions of United States
trade law, by existing bilateral trade agreements, or
as part of trade negotiations with other countries and
progress is being made toward the elimination of such
practices.
``(b) Initiation of Consultations.--By no later than the date that
is 21 days after the date on which a report is submitted to the
appropriate congressional committees under subsection (a)(1), the Trade
Representative shall seek consultations with each foreign country
identified in the report as engaging in priority foreign country
practices for the purpose of reaching a satisfactory resolution of such
priority practices.
``(c) Initiation of Investigation.--If a satisfactory resolution of
priority foreign country practices has not been reached under
subsection (b) within 90 days after the date on which a report is
submitted to the appropriate congressional committees under subsection
(a)(1), the Trade Representative shall initiate under section 302(b)(1)
an investigation under this chapter with respect to such priority
foreign country practices.
``(d) Agreements for the Elimination of Barriers.--In the
consultations with a foreign country that the Trade Representative is
required to request under section 303(a) with respect to an
investigation initiated by reason of subsection (c), the Trade
Representative shall seek to negotiate an agreement that provides for
the elimination of the practices that are the subject of the
investigation as quickly as possible or, if elimination of the
practices is not feasible, an agreement that provides for compensatory
trade benefits.
``(e) Reports.--The Trade Representative shall include in the
semiannual report required by section 309 a report on the status of any
investigations initiated pursuant to subsection (c) and, where
appropriate, the extent to which such investigations have led to
increased opportunities for the export of products and services of the
United States.''.

SEC. 312. CHIEF ENFORCEMENT NEGOTIATOR.

(a) Establishment of Position.--Section 141(b)(2) of the Trade Act
of 1974 (19 U.S.C. 2171(b)(2)) is amended to read as follows:
``(2) There shall be in the Office 3 Deputy United States Trade
Representatives, 1 Chief Agricultural Negotiator, and 1 Chief
Enforcement Negotiator. The 3 Deputy United States Trade
Representatives and the 2 Chief Negotiators shall be appointed by the
President, by and with the advice and consent of the Senate. As an
exercise of the rulemaking power of the Senate, any nomination of a
Deputy United States Trade Representative, the Chief Agricultural
Negotiator, or the Chief Enforcement Negotiator submitted to the Senate
for its advice and consent, and referred to a committee, shall be
referred to the Committee on Finance. Each Deputy United States Trade
Representative, the Chief Agricultural Negotiator, and the Chief
Enforcement Negotiator shall hold office at the pleasure of the
President and shall have the rank of Ambassador.''.
(b) Functions of Position.--Section 141(c) of the Trade Act of 1974
(19 U.S.C. 2171(c)) is amended by adding at the end the following new
paragraph:
``(6) The principal function of the Chief Enforcement Negotiator
shall be to conduct negotiations to ensure compliance with trade
agreements relating to United States manufactured goods and services.
The Chief Enforcement Negotiator shall recommend investigating and
prosecuting cases before the World Trade Organization and under trade
agreements to which the United States is a party. The Chief Enforcement
Negotiator shall recommend administering United States trade laws
relating to foreign government barriers to United States goods and
services. The Chief Enforcement Negotiator shall perform such other
functions as the United States Trade Representative may direct.''.

SEC. 313. FOREIGN DEBT.

(a) Short Title.--This section may be cited as the ``Foreign Debt
Ceiling Act of 2005''.
(b) Foreign Debt Ceiling.--
(1) Findings.--Congress makes the following findings:
(A) The United States has become the world's
largest net debtor Nation, having run up massive trade
deficits since the 1990s.
(B) At the end of 2002, the net United States
foreign debt stood at $2,553,000,000,000.
(C) The United States foreign debt position
worsened in 2003, when the United States had a record
trade deficit of $489,000,000,000, equivalent to 4.4
percent of the United States GDP that year.
(D) The large and growing United States foreign
debt represents claims on United States assets by
foreign nationals, which will eventually have to be
repaid. If unchecked, the foreign debt could seriously
undermine our children's future standard of living.
(E) Moreover, the growing accumulation of foreign
claims on United States assets, including over
$1,200,000,000,000 in United States Treasury
securities, makes the United States economy vulnerable
to the whims of foreign investors.
(F) Congress presently places a ceiling on United
States public debt, but does not place a ceiling on
United States foreign debt.
(G) Just as Congress recognized the importance of
placing a ceiling on the United States public debt, it
is appropriate that Congress place a limit on the
United States foreign debt.
(2) Actions triggered by united states foreign debt.--
(A) In general.--Not later than the 15th day of the
second month after the date of enactment of this Act,
and every 3 months thereafter, the United States Trade
Representative shall determine if--
(i) the net United States foreign debt for
the preceding 12-month period is more than 25
percent of United States GDP for the same
period; or
(ii) the United States trade deficit for
the preceding 12-month period is more than 5
percent of United States GDP for the same
period.
(B) Action by ustr.--Whenever an affirmative
determination is made under subparagraph (A) (i) or
(ii), the United States Trade Representative shall--
(i) within 15 days of the determination,
convene an emergency meeting of the Trade
Policy Review Group to develop a plan of action
to reduce the United States trade deficit; and
(ii) within 45 days of the determination,
present to Congress a report detailing the
Trade Policy Review Group's trade deficit
reduction plan.
(3) Measurement of foreign debt.--
(A) Statistical sources.--For purposes of the
calculations described in paragraph (2)(A), the United
States Trade Representative shall rely on the most
recent period for which the following data, published
by the Department of Commerce, is available:
(i) In the case of United States foreign
debt, the United States Trade Representative
shall use the net international investment
position of the United States, with direct
investment positions determined at market
value, as compiled by the Bureau of Economic
Analysis.
(ii) In the case of the United States trade
deficit, the United States Trade Representative
shall use the goods and services trade deficit
data compiled by the United States Census
Bureau.
(iii) In the case of the United States GDP,
the United States Trade Representative shall
use the nominal gross domestic product data
compiled by the Bureau of Economic Analysis.
(B) Adjustment.--The United States Trade
Representative may adjust the data described in
subparagraph (A) to ensure that the determination is
made for comparable time period.

SEC. 314. AUTHORIZATION OF APPROPRIATIONS.

(a) Authorization of Appropriations for the Office of the General
Counsel and the Office of Monitoring and Enforcement.--There are
authorized to be appropriated to the Office of the United States Trade
Representative for the appointment of additional staff in the Office of
the General Counsel and the Office of Monitoring and Enforcement--
(1) $2,000,000 for fiscal year 2005; and
(2) $2,000,000 for fiscal year 2006.
(b) Responsibilities of Additional Staff.--The responsibilities of
the additional staff appointed under subsection (a) shall include--
(1) investigating, prosecuting, and defending cases before
the World Trade Organization and under trade agreements to
which the United States is a party;
(2) administering United States trade laws, including title
III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) and other
trade laws relating to foreign government barriers to United
States goods and services, including barriers involving
intellectual property rights, government procurement, and
telecommunications; and
(3) monitoring compliance with the Uruguay Round Agreements
(as defined in section 2 of the Uruguay Round Agreements Act
(19 U.S.C. 3501)) and other trade agreements, particularly by
the People's Republic of China.

Subtitle B--Exchange Rate Policy and Currency Manipulation

SEC. 321. NEGOTIATIONS REGARDING CURRENCY VALUATION.

(a) Findings.--Congress makes the following findings:
(1) The currency of the People's Republic of China, known
as the yuan or renminbi, is artificially pegged at a level
significantly below its market value. Economists estimate the
yuan to be undervalued by between 15 percent and 40 percent or
an average of 27.5 percent.
(2) The undervaluation of the yuan provides the People's
Republic of China with a significant trade advantage by making
exports less expensive for foreign consumers and by making
foreign products more expensive for Chinese consumers. The
effective result is a significant subsidization of China's
exports and a virtual tariff on foreign imports.
(3) The Government of the People's Republic of China has
intervened in the foreign exchange markets to hold the value of
the yuan within an artificial trading range. China's foreign
reserves are estimated to be over $609,900,000,000 as of
January 12, 2004, and have increased by over $206,700,000,000
in the last 12 months.
(4) China's undervalued currency, China's trade advantage
from that undervaluation, and the Chinese Government's
intervention in the value of its currency violates the spirit
and letter of the world trading system of which the People's
Republic of China is now a member.
(5) The Government of the People's Republic of China has
failed to promptly address concerns or to provide a definitive
timetable for resolution of these concerns raised by the United
States and the international community regarding the value of
its currency.
(6) Article XXI of the GATT 1994 (as defined in section
2(1)(B) of the Uruguay Round Agreements Act (19 U.S.C.
3501(1)(B))) allows a member of the World Trade Organization to
take any action which it considers necessary for the protection
of its essential security interests. Protecting the United
States manufacturing sector is essential to the interests of
the United States.
(b) Negotiations and Certification Regarding the Currency Valuation
Policy of the People's Republic of China.--
(1) In general.--Notwithstanding the provisions of title I
of Public Law 106-286 (19 U.S.C. 2431 note), on and after the
date that is 180 days after the date of enactment of this Act,
unless a certification described in paragraph (2) has been made
to Congress, in addition to any other duty, there shall be
imposed a rate of duty of 27.5 percent ad valorem on any
article that is the growth, product, or manufacture of the
People's Republic of China, imported directly or indirectly
into the United States.
(2) Certification.--The certification described in this
paragraph means a certification by the President to Congress
that the People's Republic of China is no longer acquiring
foreign exchange reserves to prevent the appreciation of the
rate of exchange between its currency and the United States
dollar for purposes of gaining an unfair competitive advantage
in international trade. The certification shall also include a
determination that the currency of the People's Republic of
China has undergone a substantial upward revaluation placing it
at or near its fair market value.
(3) Alternative certification.--If the President certifies
to Congress 180 days after the date of enactment of this Act
that the People's Republic of China has made a good faith
effort to revalue its currency upward placing it at or near its
fair market value, the President may delay the imposition of
the tariffs described in paragraph (1) for an additional 180
days. If at the end of the 180-day period the President
determines that China has developed and started actual
implementation of a plan to revalue its currency, the President
may delay imposition of the tariffs for an additional 12
months, so that the People's Republic of China shall have time
to implement the plan.
(4) Negotiations.--Beginning on the date of enactment of
this Act, the Secretary of the Treasury, in consultation with
the United States Trade Representative, shall begin
negotiations with the People's Republic of China to ensure that
the People's Republic of China adopts a process that leads to a
substantial upward currency revaluation within 180 days after
the date of enactment of this Act. Because various Asian
governments have also been acquiring substantial foreign
exchange reserves in an effort to prevent appreciation of their
currencies for purposes of gaining an unfair competitive
advantage in international trade, and because the People's
Republic of China has concerns about the value of those
currencies, the Secretary shall also seek to convene a
multilateral summit to discuss exchange rates with
representatives of various Asian governments and other
interested parties, including representatives of other G-7
nations.

Subtitle C--Trade Adjustment Assistance

CHAPTER 1--SERVICE WORKERS

SEC. 331. SHORT TITLE.

This chapter may be cited as the ``Trade Adjustment Assistance
Equity for Service Workers Act of 2005''.

SEC. 332. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICES SECTOR.

(a) Adjustment Assistance for Workers.--Section 221(a)(1)(A) of the
Trade Act of 1974 (19 U.S.C. 2271(a)(1)(A)) is amended by striking
``agricultural firm)'' and inserting ``agricultural firm, and workers
in a service sector firm or subdivision of a service sector firm or
public agency)''.
(b) Group Eligibility Requirements.--Section 222 of the Trade Act
of 1974 (19 U.S.C. 2272) is amended--
(1) in subsection (a)--
(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 or public
agency)'';
(B) in paragraph (1), by inserting ``or public
agency'' after ``of the firm''; and
(C) 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,
subdivision, or public agency to a foreign country, of
production of articles, or in provision of services, like or
directly competitive with articles which are produced, or
services which are provided, by such firm, subdivision, or
public agency; or
``(ii) such workers' firm, subdivision, or public agency
has obtained or is likely to obtain such services from a
foreign country.'';
(2) in subsection (b)--
(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 or public
agency)'';
(B) in paragraph (2), by inserting ``or service''
after ``related to the article''; and
(C) in paragraph (3)(A), by inserting ``or
services'' after ``component parts'';
(3) in subsection (c)--
(A) in paragraph (3)--
(i) by inserting ``or services'' after
``value-added production processes'';
(ii) by striking ``assembly or finishing''
and inserting ``assembly, finishing, or
testing'';
(iii) by inserting ``or services'' after
``for articles''; and
(iv) by inserting ``(or subdivision)''
after ``such other firm''; and
(B) in paragraph (4)--
(i) by striking ``for articles'' and
inserting ``, or services, used in the
production of articles or in the provision of
services''; and
(ii) by inserting ``(or subdivision)''
after ``such other firm''; and
(4) by adding at the end the following new subsection:
``(d) Basis for Secretary's Determinations.--
``(1) Increased imports.--For purposes of subsection
(a)(2)(A)(ii), the Secretary may determine that increased
imports of like or directly competitive articles or services
exist if the workers' firm or subdivision or customers of the
workers' firm or subdivision accounting for not less than 20
percent of the sales of the workers' firm or subdivision
certify to the Secretary that they are obtaining such articles
or services from a foreign country.
``(2) Obtaining services abroad.--For purposes of
subsection (a)(2)(B)(ii), the Secretary may determine that the
workers' firm, subdivision, or public agency has obtained or is
likely to obtain like or directly competitive services from a
firm in a foreign country based on a certification thereof from
the workers' firm, subdivision, or public agency.
``(3) Authority of the secretary.--The Secretary may obtain
the certifications under paragraphs (1) and (2) through
questionnaires or in such other manner as the Secretary
determines is appropriate.''.
(c) Training.--Section 236(a)(2)(A) of the Trade Act of 1974 (19
U.S.C. 2296(a)(2)(A)) is amended by striking ``$220,000,000'' and
inserting ``$440,000,000''.
(d) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C.
2319) is amended--
(1) in paragraph (1)--
(A) by inserting ``or public agency'' after ``of a
firm''; and
(B) by inserting ``or public agency'' after ``or
subdivision'';
(2) in paragraph (2)(B), by inserting ``or public agency''
after ``the firm'';
(3) by redesignating paragraphs (8) through (17) as
paragraphs (9) through (18), respectively; and
(4) 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.''.
(e) Technical Amendment.--Section 245(a) of the Trade Act of 1974
(19 U.S.C. 2317(a)) is amended by striking ``, other than subchapter
D''.

SEC. 333. TRADE ADJUSTMENT ASSISTANCE FOR FIRMS AND INDUSTRIES.

(a) Firms.--
(1) Assistance.--Section 251 of the Trade Act of 1974 (19
U.S.C. 2341) is amended--
(A) in subsection (a), by inserting ``or service
sector firm'' after ``(including any agricultural
firm'';
(B) in subsection (c)(1)--
(i) in the matter preceding subparagraph
(A), by inserting ``or service sector firm''
after ``(including any agricultural firm'';
(ii) in subparagraph (B)(ii), by inserting
``or service'' after ``of an article''; and
(iii) in subparagraph (C), by striking
``articles like or directly competitive with
articles which are produced'' and inserting
``articles or services like or directly
competitive with articles or services which are
produced or provided''; and
(C) by adding at the end the following:
``(e) Basis for Secretary Determination.--
``(1) Increased imports.--For purposes of subsection
(c)(1)(C), the Secretary may determine that increases of
imports of like or directly competitive articles or services
exist if customers accounting for not less than 20 percent of
the sales of the workers' firm certify to the Secretary that
they are obtaining such articles or services from a foreign
country.
``(2) Authority of the secretary.--The Secretary may obtain
the certifications under paragraph (1) through questionnaires
or in such other manner as the Secretary determines is
appropriate. The Secretary may exercise the authority under
section 249 in carrying out this subsection.''.
(2) Authorization of appropriations.--Section 256(b) of the
Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by striking
``$16,000,000'' and inserting ``$32,000,000''.
(3) Definitions.--Section 261 of the Trade Act of 1974 (19
U.S.C. 2351) is amended to read as follows:

``SEC. 261. DEFINITIONS.

``For purposes of this chapter:
``(1) Firm.--The term `firm' includes an individual
proprietorship, partnership, joint venture, association,
corporation (including a development corporation), business
trust, cooperative, trustee in bankruptcy, and receiver under
decree of any court. A firm, together with any predecessor or
successor firm, or any affiliated firm controlled or
substantially beneficially owned by substantially the same
persons, may be considered a single firm where necessary to
prevent unjustifiable benefits.
``(2) Service sector firm.--The term `service sector firm'
means a firm engaged in the business of providing services.''.
(b) Industries.--Section 265(a) of the Trade Act of 1974 (19 U.S.C.
2355(a)) is amended by inserting ``or service'' after ``new product''.

SEC. 334. MONITORING AND REPORTING.

Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is amended--
(1) in the first sentence--
(A) by striking ``The Secretary'' and inserting
``(a) Monitoring Programs.--The Secretary'';
(B) by inserting ``and services'' after ``imports
of articles'';
(C) by inserting ``and domestic provision of
services'' after ``domestic production'';
(D) by inserting ``or providing services'' after
``producing articles''; and
(E) by inserting ``, or provision of services,''
after ``changes in production''; and
(2) by adding at the end the following:
``(b) Collection of Data and Reports on Services Sector.--
``(1) Secretary of labor.--Not later than 3 months after
the date of the enactment of the Trade Adjustment Assistance
Equity for Service Workers Act of 2005, the Secretary of Labor
shall implement a system to collect data on adversely affected
service workers that includes the number of workers by State,
industry, and cause of dislocation of each worker.
``(2) Secretary of commerce.--Not later than 6 months after
such date of enactment, the Secretary of Commerce shall, in
consultation with the Secretary of Labor, conduct a study and
report to the Congress on ways to improve the timeliness and
coverage of data on trade in services, including methods to
identify increased imports due to the relocation of United
States firms to foreign countries, and increased imports due to
United States firms obtaining services from firms in foreign
countries.''.

SEC. 335. ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE.

(a) In General.--Section 246(a)(3) of the Trade Act of 1974 (19
U.S.C. 2318(a)(3)) is amended to read as follows:
``(3) Eligibility.--A worker in the group that the
Secretary has certified as eligible for the alternative trade
adjustment assistance program may elect to receive benefits
under the alternative trade adjustment assistance program if
the worker--
``(A) is covered by a certification under
subchapter A of this chapter;
``(B) obtains reemployment not more than 26 weeks
after the date of separation from the adversely
affected employment;
``(C) is at least 40 years of age;
``(D) earns not more than $50,000 a year in wages
from reemployment;
``(E) is employed on a full-time basis as defined
by State law in the State in which the worker is
employed; and
``(F) does not return to the employment from which
the worker was separated.''.
(b) Conforming Amendments.--Section 246 of the Trade Act of 1974
(19 U.S.C. 2318) is amended--
(1) in subsection (a)(2)(A), by striking ``paragraph
(3)(B)'' and inserting ``paragraph (3)'';
(2) in subsection (a)(2)(B), by striking ``paragraph
(3)(B)'' and inserting ``paragraph (3)''; and
(3) in subsection (b)(2), by striking ``subsection
(a)(3)(B)'' and inserting ``subsection (a)(3)''.

SEC. 336. EFFECTIVE DATE.

(a) In General.--Except as provided in subsection (b), the
amendments made by this chapter shall take effect on the date of
enactment of this Act.
(b) Special Rule for Certain Service Workers.--A group of workers
in a service sector firm, or subdivision of a service sector firm, or
public agency (as defined in section 247 (7) and (8) of the Trade Act
of 1974, as added by section 332(d) of this Act) who--
(1) would have been certified eligible to apply for
adjustment assistance under chapter 2 of title II of the Trade
Act of 1974 if the amendments made by this Act had been in
effect on November 4, 2002; and
(2) file a petition pursuant to section 221 of the Trade
Act of 1974 (19 U.S.C. 2271) not later than 6 months after the
date of enactment of this Act, shall be eligible for
certification under section 223 of the Trade Act of 1974 (19
U.S.C. 2273) if the workers' last total or partial separation
from the firm or subdivision of the firm or public agency
occurred on or after November 4, 2002 and before the date of
enactment of this Act.

CHAPTER 2--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

SEC. 341. SHORT TITLE.

This chapter may be cited as the ``Trade Adjustment Assistance for
Communities Act of 2005''.

SEC. 342. PURPOSE.

The purpose of this chapter is to assist communities negatively
impacted by trade with economic adjustment through the integration of
political and economic organizations, the coordination of Federal,
State, and local resources, the creation of community-based development
strategies, and the provision of economic transition assistance.

SEC. 343. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.

(a) Repeal of Terminated Provisions.--Chapter 4 of the Trade Act of
1974 (19 U.S.C. 2371 et seq.) is repealed.
(b) Trade Adjustment Assistance for Communities.--Title II of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.) is amended by inserting
after chapter 3 the following new chapter:

``CHAPTER 4--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

``SEC. 271. DEFINITIONS.

``In this chapter:
``(1) Affected domestic producer.--The term `affected
domestic producer' means any manufacturer, producer, service
provider, farmer, rancher, fisherman or worker representative
(including associations of such persons) that was affected by a
finding under the Antidumping Act, 1921 (title II of the Act of
May 27, 1921; 42 Stat. 11, chapter 14), or by an antidumping or
countervailing duty order issued under title VII of the Tariff
Act of 1930 (19 U.S.C. 1671 et seq.).
``(2) Agricultural commodity producer.--The term
`agricultural commodity producer' has the same meaning as the
term `person' as prescribed by regulations promulgated under
section 1001(e) of the Food Security Act of 1985 (7 U.S.C.
1308(e)).
``(3) Community.--The term `community' means a city,
county, or other political subdivision of a State or a
consortium of political subdivisions of a State that the
Secretary certifies as being negatively impacted by trade.
``(4) Community negatively impacted by trade.--A community
negatively impacted by trade means a community with respect to
which a determination has been made under section 273.
``(5) Eligible community.--The term `eligible community'
means a community certified under section 273 for assistance
under this chapter.
``(6) Fisherman.--
``(A) In general.--The term `fisherman' means any
person who--
``(i) is engaged in commercial fishing; or
``(ii) is a United States fish processor.
``(B) Commercial fishing, fish, fishery, fishing,
fishing vessel, person, and united states fish
processor.--The terms `commercial fishing', `fish',
`fishery', `fishing', `fishing vessel', `person', and
`United States fish processor' have the same meanings
as given such terms in section 3 of the Magnuson-
Stevens Fishery Conservation and Management Act (16
U.S.C. 1802).
``(7) Job loss.--The term `job loss' means the total
separation or partial separation of an individual, as those
terms are defined in section 247.
``(8) Secretary.--Except as otherwise provided, the term
`Secretary' means the Secretary of Commerce.

``SEC. 272. COMMUNITY TRADE ADJUSTMENT ASSISTANCE PROGRAM.

``(a) Establishment.--Not later than 6 months after the date of
enactment of the Trade Adjustment Assistance for Communities Act of
2005, the Secretary shall establish a Trade Adjustment Assistance for
Communities Program at the Department of Commerce.
``(b) Personnel.--The Secretary shall designate such staff as may
be necessary to carry out the responsibilities described in this
chapter.
``(c) Coordination of Federal Response.--The Secretary shall--
``(1) provide leadership, support, and coordination for a
comprehensive management program to address economic
dislocation in eligible communities;
``(2) coordinate the Federal response to an eligible
community--
``(A) by identifying all Federal, State, and local
resources that are available to assist the eligible
community in recovering from economic distress;
``(B) by ensuring that all Federal agencies
offering assistance to an eligible community do so in a
targeted, integrated manner that ensures that an
eligible community has access to all available Federal
assistance;
``(C) by assuring timely consultation and
cooperation between Federal, State, and regional
officials concerning economic adjustment for an
eligible community; and
``(D) by identifying and strengthening existing
agency mechanisms designed to assist eligible
communities in their efforts to achieve economic
adjustment and workforce reemployment;
``(3) provide comprehensive technical assistance to any
eligible community in the efforts of that community to--
``(A) identify serious economic problems in the
community that are the result of negative impacts from
trade;
``(B) integrate the major groups and organizations
significantly affected by the economic adjustment;
``(C) access Federal, State, and local resources
designed to assist in economic development and trade
adjustment assistance;
``(D) diversify and strengthen the community
economy; and
``(E) develop a community-based strategic plan to
address economic development and workforce dislocation,
including unemployment among agricultural commodity
producers, and fishermen;
``(4) establish specific criteria for submission and
evaluation of a strategic plan submitted under section 274(d);
``(5) establish specific criteria for submitting and
evaluating applications for grants under section 275;
``(6) administer the grant programs established under
sections 274 and 275; and
``(7) establish an interagency Trade Adjustment Assistance
for Communities Working Group, consisting of the
representatives of any Federal department or agency with
responsibility for economic adjustment assistance, including
the Department of Agriculture, the Department of Education, the
Department of Labor, the Department of Housing and Urban
Development, the Department of Health and Human Services, the
Small Business Administration, the Department of the Treasury,
the Department of Commerce, and any other Federal, State, or
regional department or agency the Secretary determines
necessary or appropriate.

``SEC. 273. CERTIFICATION AND NOTIFICATION.

``(a) Certification.--Not later than 45 days after an event
described in subsection (c)(1), the Secretary shall determine if a
community described in subsection (b)(1) is negatively impacted by
trade, and if a positive determination is made, shall certify the
community for assistance under this chapter.
``(b) Determination That Community Is Eligible.--
``(1) Community described.--A community described in this
paragraph means a community with respect to which on or after
October 1, 2005--
``(A) the Secretary of Labor certifies a group of
workers (or their authorized representative) in the
community as eligible for assistance pursuant to
section 223;
``(B) the Secretary of Commerce certifies a firm
located in the community as eligible for adjustment
assistance under section 251;
``(C) the Secretary of Agriculture certifies a
group of agricultural commodity producers (or their
authorized representative) in the community as eligible
for adjustment assistance under section 293;
``(D) an affected domestic producer is located in
the community; or
``(E) the Secretary determines that a significant
number of fishermen in the community is negatively
impacted by trade.
``(2) Negatively impacted by trade.--The Secretary shall
determine that a community is negatively impacted by trade,
after taking into consideration--
``(A) the number of jobs affected compared to the
size of the workforce in the community;
``(B) the severity of the rates of unemployment in
the community and the duration of the unemployment in
the community;
``(C) the income levels and the extent of
underemployment in the community;
``(D) the outmigration of population from the
community and the extent to which the outmigration is
causing economic injury in the community; and
``(E) the unique problems and needs of the
community.
``(c) Events Described.--
``(1) In general.--An event described in this paragraph
means one of the following:
``(A) A notification described in paragraph (2).
``(B) A certification of a firm under section 251.
``(C) A finding under the Antidumping Act, 1921, or
an antidumping or countervailing duty order issued
under title VII of the Tariff Act of 1930.
``(D) A determination by the Secretary that a
significant number of fishermen in a community have
been negatively impacted by trade.
``(2) Notification.--The Secretary of Labor, immediately
upon making a determination that a group of workers is eligible
for trade adjustment assistance under section 223, (or the
Secretary of Agriculture, immediately upon making a
determination that a group of agricultural commodity producers
is eligible for adjustment assistance under section 293, as the
case may be) shall notify the Secretary of the determination.
``(d) Notification to Eligible Communities.--Immediately upon
certification by the Secretary that a community is eligible for
assistance under subsection (b), the Secretary shall notify the
community--
``(1) of the determination under subsection (b);
``(2) of the provisions of this chapter;
``(3) how to access the clearinghouse established by the
Department of Commerce regarding available economic assistance;
``(4) how to obtain technical assistance provided under
section 272(c)(3); and
``(5) how to obtain grants, tax credits, low income loans,
and other appropriate economic assistance.

``SEC. 274. STRATEGIC PLANS.

``(a) In General.--An eligible community may develop a strategic
plan for community economic adjustment and diversification.
``(b) Requirements for Strategic Plan.--A strategic plan shall
contain, at a minimum, the following:
``(1) A description and justification of the capacity for
economic adjustment, including the method of financing to be
used.
``(2) A description of the commitment of the community to
the strategic plan over the long term and the participation and
input of groups affected by economic dislocation.
``(3) A description of the projects to be undertaken by the
eligible community.
``(4) A description of how the plan and the projects to be
undertaken by the eligible community will lead to job creation
and job retention in the community.
``(5) A description of how the plan will achieve economic
adjustment and diversification.
``(6) A description of how the plan and the projects will
contribute to establishing or maintaining a level of public
services necessary to attract and retain economic investment.
``(7) A description and justification for the cost and
timing of proposed basic and advanced infrastructure
improvements in the eligible community.
``(8) A description of how the plan will address the
occupational and workforce conditions in the eligible
community.
``(9) A description of the educational programs available
for workforce training and future employment needs.
``(10) A description of how the plan will adapt to changing
markets and business cycles.
``(11) A description and justification for the cost and
timing of the total funds required by the community for
economic assistance.
``(12) A graduation strategy through which the eligible
community demonstrates that the community will terminate the
need for Federal assistance.
``(c) Grants To Develop Strategic Plans.--The Secretary, upon
receipt of an application from an eligible community, may award a grant
to that community to be used to develop the strategic plan.
``(d) Submission of Plan.--A strategic plan developed under
subsection (a) shall be submitted to the Secretary for evaluation and
approval.

``SEC. 275. GRANTS FOR ECONOMIC DEVELOPMENT.

``(a) In General.--The Secretary, upon approval of a strategic plan
from an eligible community, may award a grant to that community to
carry out any project or program that is certified by the Secretary to
be included in the strategic plan approved under section 274(d), or
consistent with that plan.
``(b) Additional Grants.--
``(1) In general.--Subject to paragraph (2), in order to
assist eligible communities to obtain funds under Federal grant
programs, other than the grants provided for in section 274(c)
or subsection (a), the Secretary may, on the application of an
eligible community, make a supplemental grant to the community
if--
``(A) the purpose of the grant program from which
the grant is made is to provide technical or other
assistance for planning, constructing, or equipping
public works facilities or to provide assistance for
public service projects; and
``(B) the grant is one for which the community is
eligible except for the community's inability to meet
the non-Federal share requirements of the grant
program.
``(2) Use as non-federal share.--A supplemental grant made
under this subsection may be used to provide the non-Federal
share of a project, unless the total Federal contribution to
the project for which the grant is being made exceeds 80
percent and that excess is not permitted by law.
``(c) Rural Community Preference.--The Secretary shall develop
guidelines to ensure that rural communities receive preference in the
allocation of resources.

``SEC. 276. GENERAL PROVISIONS.

``(a) Regulations.--The Secretary shall prescribe such regulations
as are necessary to carry out the provisions of this chapter. Before
implementing any regulation or guideline proposed by the Secretary with
respect to this chapter, the Secretary shall submit the regulation or
guideline to the Committee on Finance of the Senate and the Committee
on Ways and Means of the House of Representatives for approval.
``(b) Supplement Not Supplant.--Funds appropriated under this
chapter shall be used to supplement and not supplant other Federal,
State, and local public funds expended to provide economic development
assistance for communities.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $100,000,000 for each of fiscal years
2005 through 2008, to carry out this chapter. Amounts appropriated
pursuant to this subsection shall remain available until expended.''.

SEC. 344. CONFORMING AMENDMENTS.

(a) Termination.--Section 285(b) of the Trade Act of 1974 (19
U.S.C. 2271 note) is amended by adding at the end the following new
paragraph:
``(3) Assistance for communities.--Technical assistance and
other payments may not be provided under chapter 4 after
September 30, 2008.''.
(b) Table of Contents.--The table of contents for title II of the
Trade Act of 1974 is amended by striking the items relating to chapter
4 of title II and inserting after the items relating to chapter 3 the
following new items:

``Chapter 4--Trade Adjustment Assistance for Communities

``Sec. 271. Definitions.
``Sec. 272. Community Trade Adjustment Assistance Program.
``Sec. 273. Certification and notification.
``Sec. 274. Strategic plans.
``Sec. 275. Grants for economic development.
``Sec. 276. General provisions.''.
(c) Judicial Review.--Section 284(a) of the Trade Act of 1974 (19
U.S.C. 2395(a)) is amended by striking ``section 271'' and inserting
``section 273''.

SEC. 345. EFFECTIVE DATE.

The amendments made by this chapter shall take effect on the date
of enactment of this Act.

CHAPTER 3--OFFICE OF TRADE ADJUSTMENT ASSISTANCE

SEC. 351. SHORT TITLE.

This chapter may be cited as the ``Trade Adjustment Assistance for
Firms Reorganization Act''.

SEC. 352. OFFICE OF TRADE ADJUSTMENT 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 inserting after section 255 the
following new section:

``SEC. 255A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

``(a) Establishment.--Not later than 90 days after the date of
enactment of the Trade Adjustment Assistance for Firms Reorganization
Act, there shall be established in the International Trade
Administration of the Department of Commerce an Office of Trade
Adjustment Assistance.
``(b) Personnel.--The Office shall be headed by a Director, and
shall have such staff as may be necessary to carry out the
responsibilities of the Secretary of Commerce described in this
chapter.
``(c) Functions.--The Office shall assist the Secretary of Commerce
in carrying out the Secretary's responsibilities under this chapter.''.
(b) Conforming Amendment.--The table of contents for the Trade Act
of 1974 is amended by inserting after the item relating to section 255,
the following new item:

``Sec. 255A. Office of Trade Adjustment Assistance.''.

SEC. 353. EFFECTIVE DATE.

The amendments made by this chapter shall take effect on the date
of enactment of this Act.

CHAPTER 4--IMPROVEMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS

SEC. 361. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.

(a) Improvement of Affordability.--
(1) In General.--Section 35(a) of the Internal Revenue Code
of 1986 (relating to credit for health insurance costs of
eligible individuals) is amended to read as follows:
``(a) Amount of Credit.--
``(1) In general.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by
subtitle A an amount equal to the excess of--
``(A) the amount paid by the taxpayer for coverage
of the taxpayer and qualifying family members under
qualified health insurance for eligible coverage months
beginning in the taxable year, over
``(B) the amount described in paragraph (2).
``(2) Amount described.--For purposes of paragraph (1), the
amount described in this paragraph is the lesser of--
``(A) the amount equal to 20 percent of the amount
determined under paragraph (1)(A) for the taxable year,
or
``(B) the amount equal to 5 percent of the
taxpayer's certified income (as determined under
subsection (g)(9)) for such taxable year.''.
(2) Conforming amendment.--Section 7527(b) of such Code
(relating to advance payment of credit for health insurance
costs of eligible individuals) is amended by striking ``65
percent of the amount'' and all that follows through the period
at the end and inserting ``the amount determined under section
35(a)(1) for such taxable year.''.
(b) Determination of Certified Income.--Section 35(g) of such Code
(relating to special rules), is amended--
(1) by redesignating paragraph (9) as paragraph (10), and
(2) by inserting after paragraph (8) the following new
paragraph:
``(9) Certified income.--
``(A) In general.--The Secretary shall enter into
agreements with States to determine an individual's
certified income for purposes of subsection (a)(2)(B)
for any taxable year.
``(B) Requirements.--An agreement under
subparagraph (A) with a State shall--
``(i) permit an individual to complete an
application for certification of income for a
taxable year (in such form and manner as the
Secretary shall determine) and to submit the
application to the State,
``(ii) require the State to determine the
individual's income for the taxable year on the
basis of the individual's monthly family income
as of the month preceding the month in which
the application is submitted, and
``(iii) require the State to issue a
certification of income to the individual upon
receipt of an application under clause (i),
which shall apply for purposes of determining
the taxpayer's certified income for purposes of
subsection (a)(2)(B) for the taxable year
unless the State determines upon completion of
the processing of the application that the
certification is erroneous.
``(C) Notification of change in income.--An
individual issued a certification of income shall
notify the State of any substantial change in income
that applies for at least 60 days and the taxpayer's
certified income for the taxable year shall be adjusted
accordingly. An individual who fails to so notify the
State shall remit the difference (if any) between the
amount described in subsection (a)(2) for the taxable
year and such amount which would have been described
under such subsection for such taxable year if the
notification had been made as an addition to tax, plus
interest at the underpayment rate established under
section 6621.''.
(c) Effective Date.--The amendments made by this section apply to
taxable years beginning after December 31, 2004.

SEC. 362. OFFERING OF FEDERAL FALLBACK COVERAGE.

(a) Provision of Fallback Coverage.--
(1) In general.--The Director of the Office of Personnel
Management jointly with the Secretary of the Treasury shall
establish a program under which eligible individuals (as
defined in section 35(c) of the Internal Revenue Code of 1986)
are offered enrollment under health benefit plans that are made
available under FEHBP.
(2) Terms and conditions.--The terms and conditions of
health benefits plans offered under paragraph (1) shall be the
same as the terms and coverage offered under FEHBP, except that
the percentage of the premium charged to eligible individuals
(as so defined) for such health benefit plans shall be equal to
the percentage that an employee would be required to contribute
for coverage under FEHBP.
(3) Study.--The Director of the Office of Personnel
Management jointly with the Secretary of the Treasury shall
conduct a study of the impact of the offering of health benefit
plans under this subsection on the terms and conditions,
including premiums, for health benefit plans offered under
FEHBP and shall submit to Congress, not later than 2 years
after the date of the enactment of this Act, a report on such
study. Such report may contain such recommendations regarding
the establishment of separate risk pools for individuals
covered under FEHBP and eligible individuals covered under
health benefit plans offered under paragraph (1) as may be
appropriate to protect the interests of individuals covered
under FEHBP and alleviate any adverse impact on FEHBP that may
result from the offering of such health benefit plans.
(4) FEHBP defined.--In this section, the term ``FEHBP''
means the Federal Employees Health Benefits Program offered
under chapter 89 of title 5, United States Code.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 35(e) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subparagraph:
``(K) Coverage under a health benefits plan offered
under section 362(a)(1) of the Fair Wage, Competition,
and Investment Act of 2005.''.
(2) Section 173(f)(2)(A) of the Workforce Investment Act of
1998 (29 U.S.C. 2918(f)(2)(A)) is amended by adding at the end
the following new clause:
``(xi) Coverage under a health benefits
plan offered under section 362(a)(1) of the
Fair Wage, Competition, and Investment Act of
2005.''.

SEC. 363. CLARIFICATION OF ELIGIBILITY OF SPOUSE OF CERTAIN INDIVIDUALS
ENTITLED TO MEDICARE.

(a) In General.--Subsection (b) of section 35 of the Internal
Revenue Code of 1986 (defining eligible coverage month) is amended by
adding at the end the following:
``(3)  Special rule for spouse of individual entitled to
medicare.--Any month which would be an eligible coverage month
with respect to a taxpayer (determined without regard to
subsection (f)(2)(A)) shall be an eligible coverage month for
any spouse of such taxpayer.''.
(b) Conforming Amendment.--Section 173(f)(5)(A)(i) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(f)(5)(A)(i)) is amended by
inserting ``(including with respect to any month for which the eligible
individual would have been treated as such but for the application of
paragraph (7)(B)(i))'' before the comma.

Subtitle D--Sense of the Senate on Free Trade Agreements

SEC. 371. SENSE OF THE SENATE ON FREE TRADE AGREEMENTS.

(a) Findings.--The Senate makes the following findings:
(1) The United States is participating in the Doha Round of
World Trade Organization (``WTO'') negotiations, which seeks to
lower trade barriers for all members of the WTO.
(2) In addition to participating in the Doha Round of WTO
negotiations, the United States is negotiating bilateral free
trade agreements with 20 countries.
(3) Only 1 of those 20 countries is among the top 30
trading partners of the United States.
(4) During the debate on the legislation that was enacted
as the Trade Act of 2002 (Public Law 107-210; 116 Stat. 933), a
representative of the President argued that ``[i]ncreased trade
will help our workers, farmers, businesses, and economy by
enhancing employment opportunities, opening more markets to
American goods and services, and increasing choices and
lowering costs for consumers''.
(5) During that debate and on other occasions, the
President and individuals in the Executive Branch of the United
States have repeatedly argued that increased trade means an
increase in the number of jobs in the United States and a
higher standard of living for people in the United States.
(6) The President and individuals in the Executive Branch
of the United States have also argued that trade expands
markets for United States goods and services, creates higher-
paying jobs in the United States, and invigorates local
communities and their economies.
(7) Trade agreements between the United States and
countries with small economies have little impact on creating
jobs in the United States or a higher standard of living for
people in the United States.
(b) Sense of the Senate.--It is the sense of the Senate that--
(1) the trade policy of the United States should focus on
creating more jobs in the United States and a higher standard
of living for people in the United States; and
(2) to best accomplish these goals, the United States
should focus its efforts on trade negotiations occurring at the
WTO and, when negotiating trade agreements on a bilateral
basis, focus on agreements with countries that have large
economies that will provide meaningful export opportunities for
United States farmers, workers, and businesses.
<all>