Right TRACK Act
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Read twice and referred to the Committee on Finance.
March 2, 2006
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Introduced in Senate
March 2, 2006
Sponsor introductory remarks on measure. (CR S1648-1651)
March 2, 2006
Read twice and referred to the Committee on Finance.
March 2, 2006
Floor Debate
8 membersWhat members said about S. 2357 on the floor




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Floor Debate
8 membersWhat members said about S. 2357 on the floor
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Bill Text
Latest available legislative text
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2357 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2357
To provide for economic security and prosperity.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 2, 2006
Mr. Kennedy introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide for economic security and prosperity.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Right Time to Reinvest in America's
Competitiveness and Knowledge Act'' or the ``Right TRACK Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--INVESTING IN THE ECONOMY OF THE FUTURE AND CREATING HIGH
QUALITY JOBS
Subtitle A--Supporting Innovation for the Economy of the Future
Chapter 1--Presidential Research and Development Commission
Sec. 1111. Research and Development Advisory Committee.
Chapter 2--Interagency Working Group
Sec. 1121. Accelerating and broadening participation in biomedical,
science, engineering, and technology
research in the United States.
Chapter 3--Research And Development Tax Credit Extension
Sec. 1131. Findings.
Sec. 1132. Permanent extension of research credit.
Sec. 1133. Increase in rates of alternative incremental credit.
Sec. 1134. Alternative simplified credit for qualified research
expenses.
Sec. 1135. Expansion of research credit.
Chapter 4--Increasing Research and Development
Sec. 1141. Authorization of appropriations for the Department of
Defense.
Sec. 1142. Authorization of appropriations for the National Science
Foundation for research and related
activities.
Sec. 1143. Authorization of appropriations for the National Aeronautics
and Space Administration for research and
development activities.
Sec. 1144. Authorization of appropriations for the Department of Energy
for basic research.
Sec. 1145. Authorization of appropriations for National Institutes of
Health for research and development.
Subtitle B--Building the Economy of the Future
Chapter 1--Nanotechnology
Sec. 1211. Tax credit for investment in nanotechnology firms.
Sec. 1212. Nanotechnology assistance.
Chapter 2--Investing in High-Tech Manufacturing
Sec. 1221. Manufacturing Extension Partnership Program.
Sec. 1222. Advanced Technology Program.
Chapter 3--Domestic Vaccines
Sec. 1231. Incentives for the construction of domestic vaccine
manufacturing facilities.
Chapter 4--Programs and Tax Credits To Increase Energy Efficiency
Sec. 1241. Grant program for green building and zero-energy home design
and construction training.
Sec. 1242. Extension of certain tax credits for solar energy.
Sec. 1243. Tax credit for purchasing green power.
Chapter 5--Renewable Portfolio Standard
Sec. 1251. Renewable portfolio standard.
Chapter 6--Improving the Efficiency of Health Care To Enhance America's
subchapter a--improving information provided to patients
Sec. 1261. Requirement for health insurers to implement computerized
claims processing systems.
Sec. 1262. Making health care more responsive to the consumer.
Sesubchapter b--application to public health service act and employee
retirement income security act of 1974
Sec. 1271. Application to group health plans and group health insurance
coverage under the Public Health Service
Act.
Sec. 1272. Application to individual health insurance coverage under
the Public Health Service Act.
Sec. 1273. Application to group health plans and group health insurance
coverage under the Employee Retirement
subchapter c--miscellaneous provisions.
Sec. 1281. Definitions.
Sec. 1282. Effect on State law.
Subtitle C--Supporting the Infrastructure Our Economy Needs
Chapter 1--Creating a National Broadband Policy
Sec. 1311. National broadband policy.
Chapter 2--Amtrak Reauthorization
Sec. 1321. Authorization for Amtrak operating grants.
Sec. 1322. Authorization for Amtrak capital grants.
Sec. 1323. Authorization for repayment of long-term debt and capital
leases.
Chapter 3--Investing in School Infrastructure
Sec. 1331. Short title.
Sec. 1332. Expansion of incentives for public schools.
Sec. 1333. Indian school construction.
Sec. 1334. Application of certain labor standards on construction
projects financed under public school
modernization program.
Sec. 1335. Training services relating to construction or reconstruction
of public school facilities.
TITLE II--EDUCATE AMERICANS TO FILL THE JOBS OF THE FUTURE
Sec. 2001. Short title.
Sec. 2002. Findings.
Subtitle A--Modernizing America's Education System
Chapter 1--Prekindergarten Through Grade 16 Education
Sec. 2111. Purposes.
Sec. 2112. Definitions.
Sec. 2113. Aligning State standards with national benchmarks.
Sec. 2114. National Assessment of Educational Progress changes.
Sec. 2115. Prekindergarten through grade 16 student preparedness
council grants.
Sec. 2116. Collaborative standards grants.
Chapter 2--Investing in Teachers
Sec. 2121. Purpose.
Sec. 2122. Definition of engineering and technology education.
Sec. 2123. Expanding teacher loan forgiveness.
Sec. 2124. Exclusion from gross income of compensation of teachers and
principals in certain high-need schools and
teaching high-need subjects.
Sec. 2125. Mathematics and science education partnerships and teacher
institutes for the 21st century through the
National Science Foundation.
Sec. 2126. TEACH grants; recruiting teachers with mathematics, science,
engineering, technology, or language
majors.
Chapter 3--Ensuring College Access for All
Sec. 2131. Contract for educational opportunity (CEO) grants.
Subtitle B--Arming Americans With 21st Century Knowledge and Skills
Chapter 1--Increasing the Number of New American Scientists, Engineers,
and Language Experts
Sec. 2211. Purpose.
Sec. 2212. Grants for strengthening mathematics, science, and
engineering and technology education
infrastructure.
Sec. 2213. Science, technology, engineering, mathematics, and critical-
need foreign language scholars.
Sec. 2214. Expansion of National Science Foundation Education and Human
Resources Directorate.
Chapter 2--Improving Global Knowledge and Skills
Sec. 2221. Definitions.
Sec. 2222. Critical-need languages.
Sec. 2223. Critical-need language program grants.
Sec. 2224. International summer institute grants.
Sec. 2225. International and foreign language studies.
Chapter 3--Investing in Workers Through Job Training
Sec. 2231. Projects to provide literacy, technology, and technical
skills training.
TITLE III--KEEPING GOOD JOBS IN THE UNITED STATES
Subtitle A--Right To Know When Jobs Are Shipped Overseas
Sec. 3101. Amendments to the Worker Adjustment and Retraining
Notification Act.
Subtitle B--Removing Tax Incentives for Companies To Ship Jobs Overseas
Sec. 3201. Taxation of income of controlled foreign corporations
attributable to imported property.
Subtitle C--Requiring Government Contractors To Use American Workers
for Taxpayer-Funded Work
Sec. 3301. Short title.
Sec. 3302. Limitations on off-shore performance of contracts for the
procurement of goods and services.
TITLE IV--LEVELING THE PLAYING FIELD FOR WORKERS HERE AND ABROAD
Subtitle A--Raise Living Standards Worldwide
Sec. 4101. Limitation on trade authorities procedures.
Subtitle B--Prevention of Currency Manipulation
Sec. 4201. International negotiations on exchange rate and economic
policies.
Subtitle C--Encouraging Multilateral Corporations To Adopt Labor
Practices
Sec. 4301. Short title.
Sec. 4302. Findings.
Sec. 4303. Definitions.
Sec. 4304. Establishment.
Sec. 4305. Conferring of awards and certificates.
Sec. 4306. Procedure and administration.
Sec. 4307. Criteria for eligibility.
Sec. 4308. Reporting requirements.
TITLE V--HELPING WORKERS AND COMMUNITIES HARMED BY TRADE
Subtitle A--Wage Insurance Program and Improvement of Credit for Health
Insurance Costs for Eligible Individuals
Sec. 5101. Wage insurance for qualifying displaced workers upon
reemployment.
Sec. 5102. Improvement of the affordability of the credit for health
insurance costs.
Sec. 5103. 100 percent credit and payment for monthly premiums paid
prior to certification of eligibility for
the credit.
Sec. 5104. Eligibility for certain pension plan recipients; presumptive
eligibility.
Sec. 5105. Clarification of 3-month creditable coverage requirement.
Sec. 5106. TAA pre-certification period rule for purposes of
determining whether there is a 63-day lapse
in creditable coverage.
Sec. 5107. Continued qualification of family members after certain
events.
Sec. 5108. Offering of national fallback coverage.
Sec. 5109. Additional requirements for individual health insurance
costs.
Sec. 5110. Alignment of COBRA coverage with TAA period for TAA-eligible
individuals.
Sec. 5111. Notice requirements.
Sec. 5112. Annual report on enhanced TAA benefits.
Sec. 5113. Extension of national emergency grants.
Subtitle B--Modernization of Trade Adjustment Assistance
Chapter 1--Service Workers and Firms
Sec. 5211. Short title.
Sec. 5212. Extension of trade adjustment assistance to services sector.
Sec. 5213. Trade adjustment assistance for firms and industries.
Sec. 5214. Monitoring and reporting.
Sec. 5215. Effective date.
Chapter 2--Expanding Trade Adjustment Assistance To Cover All Countries
Sec. 5221. Short title.
Sec. 5222. Shifts in production.
Chapter 3--Expanding Trade Adjustment Assistance To Cover Communities
Sec. 5231. Purpose.
Sec. 5232. Trade adjustment assistance for communities.
Sec. 5233. Termination.
Sec. 5234. Conforming amendments.
Chapter 4--Agreements With States
Sec. 5241. Agreements with States.
TITLE VI--MODERNIZATION OF LABOR AND EMPLOYMENT LAWS
Subtitle A--Protecting Workers' Right To Organize
Sec. 6101. Short title.
Sec. 6102. Streamlining union certification.
Sec. 6103. Facilitating initial collective bargaining agreements.
Sec. 6104. Strengthening enforcement.
Subtitle B--Raising the Federal Minimum Wage
Sec. 6201. Short title.
Sec. 6202. Minimum wage.
Sec. 6203. Applicability of minimum wage to the Commonwealth of the
Northern Mariana Islands.
Subtitle C--Modernization of Unemployment Insurance
Chapter 1--Improvements in Regular Unemployment Compensation
Sec. 6311. Part-time and low-wage workers.
Sec. 6312. No reduction in unemployment compensation as a result of
pension rollovers.
Chapter 2--Improvements to the Federal-State Extended Unemployment
Compensation Program
Sec. 6321. Lowering of extended benefit ``on'' indicator.
Sec. 6322. Revision of definition of rate of insured unemployment.
Sec. 6323. Repeal of certain State law extended benefit requirements.
Chapter 3--Effective Date
Sec. 6331. Effective date.
TITLE I--INVESTING IN THE ECONOMY OF THE FUTURE AND CREATING HIGH
QUALITY JOBS
Subtitle A--Supporting Innovation for the Economy of the Future
CHAPTER 1--PRESIDENTIAL RESEARCH AND DEVELOPMENT COMMISSION
SEC. 1111. RESEARCH AND DEVELOPMENT ADVISORY COMMITTEE.
(a) In General.--There is established an advisory committee to be
known as the ``Presidential Research and Development Advisory
Committee'' (referred to in this section as the ``Advisory Committee'')
to advise the President with respect to competitive trends in global
technology and industry and in allocating Federal resources in
education and technology development.
(b) Membership.--
(1) In general.--The Committee shall be composed of 25
members to be appointed by the President from among the
individuals nominated under paragraph (2) and the ex officio
members described in paragraph (3).
(2) Nominations.--Not later than 30 days after the date of
enactment of this Act, the National Academies of Science shall
submit to the President a list of 50 individuals nominated by
the National Academies for service as members of the Advisory
Committee. Such list shall include individuals who have
expertise in industry, science, technology, education, and
economics, including--
(A) representatives from vaccine production, high
tech manufacturing, computer science, engineering, the
energy sector, university technology transfer offices,
investors and chief executive officers, biotechnology
firms, trade associations, academic researchers, and
economists;
(B) representatives from consumer organizations;
and
(C) representatives from patient or disease-
specific advocacy groups.
(3) Ex officio members.--The following shall be ex officio
members of the Advisory Committee:
(A) The Secretary of Health and Human Services.
(B) The Secretary of Defense.
(C) The Commissioner of Food and Drugs.
(D) The Director of the National Vaccine Program.
(E) The Director of the National Institutes of
Health.
(F) The Director of the Centers for Disease Control
and Prevention.
(G) The Secretary of Energy.
(H) The Administrator of the National Aeronautics
and Space Administration.
(I) The Secretary of Homeland Security.
(J) The Secretary of Commerce.
(4) Chairperson.--The members of the Advisory Committee
appointed under paragraph (1) shall select a Chairperson from
among such members.
(c) Meetings.--The Advisory Committee shall meet on a biannual
basis at the call of the Chairperson, except that the initial meeting
of the Advisory Committee shall occur not later than 6 months after the
date of enactment of this Act.
(d) Duties of the Advisory Committee.--The Advisory Committee
shall--
(1) provide advice to the President with respect to
competitive trends in the global technology;
(2) provide advice to the President in the allocation of
Federal resources in education, job training, and technology
development; and
(3) not later than 2 years after the date of enactment of
this Act, and annually thereafter, submit to the President and
Congress a report containing the recommendations of the
Advisory Committee on strategies to keep the United States a
world leader in research and development and technological
innovation, and the current status of the United States in such
areas.
(e) Administrative Provisions.--
(1) Compensation.--
(A) In general.--
(i) Employees of federal government.--Each
ex officio or other member of the Advisory
Committee that is an officer or employee of the
Federal Government shall serve on the Advisory
Committee without compensation in addition to
that received in their regular public
employment.
(ii) Other members.--Each member of the
Advisory Committee that is not an officer or
employee of the Federal Government shall be
compensated at a rate equal to the daily
equivalent of the annual rate of basic pay
prescribed for level IV of the Executive
Schedule under section 5315 of title 5, United
States Code, for each day (including travel
time) during which such member is engaged in
the performance of the duties of the Advisory
Committee.
(B) Travel expenses.--A member of the Advisory
Committee shall be allowed travel expenses, including
per diem in lieu of subsistence, at rates authorized
for an employee of an agency under subchapter I of
chapter 57 of title 5, United States Code, while away
from the home or regular place of business of the
member in the performance of the duties of the Advisory
Committee.
(2) Staff.--
(A) In general.--The Director shall provide the
Advisory Committee with such professional and clerical
staff, such information, and the services of such
consultants as may be necessary to assist the Advisory
Committee in carrying out the functions under this
section.
(B) Detail of federal government employees.--
(i) In general.--An employee of the Federal
Government may be detailed to the Advisory
Committee without reimbursement.
(ii) Civil service status.--The detail of
the employee shall be without interruption or
loss of civil service status or privilege.
(C) Procurement of temporary and intermittent
services.--The Chairperson of the Advisory Committee
may procure temporary and intermittent services in
accordance with section 3109(b) of title 5, United
States Code, at rates for individuals that do not
exceed the daily equivalent of the annual rate of basic
pay prescribed for level V of the Executive Schedule
under section 5316 of that title.
(3) Availability of record to congress.--Upon the request
of a Member of Congress, the Chairperson of the Advisory
Committee shall submit to Congress a record of the proceedings
of the Advisory Committee.
CHAPTER 2--INTERAGENCY WORKING GROUP
SEC. 1121. ACCELERATING AND BROADENING PARTICIPATION IN BIOMEDICAL,
SCIENCE, ENGINEERING, AND TECHNOLOGY RESEARCH IN THE
UNITED STATES.
(a) Joint Working Group.--
(1) Establishment.--The Director of the National Science
Foundation (referred to in this section as the ``Director'')
shall establish a joint working group for the purpose of
developing collaborative research with respect to physical and
life sciences.
(2) Representation.--The joint working group established
under paragraph (1) shall be comprised of the Director and
representatives from the Office of Science of the Department of
Energy, the Office of Research and Engineering of the
Department of Defense, the National Oceanic and Atmospheric
Administration, the Environmental Protection Agency, the
National Aeronautics and Space Administration, and any other
Federal agencies determined appropriate by the Director.
(3) Duties.--The joint working group established under
paragraph (1) shall--
(A) develop and recommend a permanent mechanism,
and establish temporary or permanent programs as
appropriate, to fund collaborative research and
development relating to the physical and life sciences;
(B) establish temporary or permanent bi-agency and
multi-agency programs as appropriate, to fund
collaborative research and development relating to
physical and life sciences and the development of
research tools for physical and life science
applications;
(C) develop and recommend a permanent mechanism,
and establish temporary or permanent multi-agency
programs, to fund science, engineering, and technology
research with broad impacts and particular relevance
for public health, environmental health,
sustainability, and other global issues of the future;
(D) establish multi-agency and multi-disciplinary
peer review processes, as appropriate, based on both
intellectual merit and broader impacts; and
(E) not later than 2 years after the establishment
of the group, and every 2 years thereafter, submit to
Congress a report describing the activities of the
group for the period for which the report is submitted,
including evaluations of efforts to broaden
participation in science, engineering, and technology
research by underrepresented groups.
(4) Termination.--The joint working group established under
paragraph (1) shall terminate on the date that is 5 years after
the date on which the group is established under such
paragraph.
(b) Increased Funding.--
(1) Research and development.--The heads of the agencies
represented on the join working group under subsection (a),
shall--
(A) enhance and improve activities for, and
establish additional grant programs to support,
research and development in multi-disciplinary areas
including biodefense, pharmacoepidemiology,
pharmacoeconomics, and high tech fields, as necessary;
and
(B) give special consideration to grant proposals
from researchers and research institutions with
demonstrated records of broadening participation of
underrepresented groups in science, engineering, and
technology.
(2) Education and training.--The heads of the agencies
represented on the joint working group under subsection (a)
shall--
(A) enhance and improve activities for, and
establish additional grant programs to support, the
education, mentoring, and ongoing training of
undergraduate, graduate, early-career, and mid-career
researchers in multi-disciplinary areas of research,
including biodefense, pharmacoepidemiology,
pharmacoeconomics, and high tech fields; and
(B) establish additional grant programs to support
the outreach to and recruitment of pre-college students
from underserved or disadvantaged communities by
researchers at all stages of their careers who are
affiliated with degree-granting institutions.
(3) Broadening participation.--The heads of the agencies
represented in the joint working group under subsection (a)
shall ensure that the activities authorized under paragraphs
(1) and (2) promote full and equal development and use of the
talents of men and women of all ethnic, racial, and economic
backgrounds, including individuals with disabilities, in
advancing the United States' competitiveness in the global
economy.
CHAPTER 3--RESEARCH AND DEVELOPMENT TAX CREDIT EXTENSION
SEC. 1131. 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. 1132. 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. 1133. 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. 1134. 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. 1135. EXPANSION OF RESEARCH CREDIT.
(a) Expansion of Credit to Expenses of General Collaborative
Research Consortia.--Section 41 of the Internal Revenue Code of 1986
(relating to credit for increased research activities) is amended--
(1) by striking ``an energy research consortium'' in
subsections (a)(3) and (b)(3)(C)(i) and inserting ``a research
consortium'',
(2) by striking ``energy'' each place it appears in
subsection (f)(6)(A),
(3) by inserting ``or 501(c)(6)'' after ``section
501(c)(3)'' in subsection (f)(6)(A)(i)(I), and
(4) by striking ``Energy research'' in the heading for
subsection (f)(6)(A) and inserting ``Research''.
(b) 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.
CHAPTER 4--INCREASING RESEARCH AND DEVELOPMENT
SEC. 1141. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT OF
DEFENSE.
(a) Basic Research.--There is authorized to be appropriated for the
Department of Defense for basic (6.1) research, for the research,
development, test, and evaluation accounts of the Department, and for
other accounts of the Department providing funding for such research,
aggregate amounts as follows:
(1) $1,565,801,000 for fiscal year 2007.
(2) $1,722,381,000 for fiscal year 2008.
(3) $1,894,619,000 for fiscal year 2009.
(4) $2,084,080,000 for fiscal year 2010.
(5) $2,292,489,000 for fiscal year 2011.
(6) $2,521,737,000 for fiscal year 2012.
(7) $2,773,911,000 for fiscal year 2013.
(b) Applied Research.--There is authorized to be appropriated for
the Department of Defense for applied (6.2) research, for the research,
development, test, and evaluation accounts of the Department, and for
other accounts of the Department providing funding for such research,
aggregate amounts as follows:
(1) $4,908,093,000 for fiscal year 2007.
(2) $5,398,903,000 for fiscal year 2008.
(3) $5,938,793,000 for fiscal year 2009.
(4) $6,532,672,000 for fiscal year 2010.
(5) $7,185,939,000 for fiscal year 2011.
(6) $7,904,533,000 for fiscal year 2012.
(7) $8,694,987,000 for fiscal year 2013.
SEC. 1142. AUTHORIZATION OF APPROPRIATIONS FOR THE NATIONAL SCIENCE
FOUNDATION FOR RESEARCH AND RELATED ACTIVITIES.
There is authorized to be appropriated for the National Science
Foundation for Research and Related Activities, amounts as follows:
(1) $4,826,250,000 for fiscal year 2007.
(2) $5,308,875,000 for fiscal year 2008.
(3) $5,839,763,000 for fiscal year 2009
(4) $6,423,739,000 for fiscal year 2010.
(5) $7,066,113,000 for fiscal year 2011.
(6) $7,772,724,000 for fiscal year 2012.
(7) $8,549,996,000 for fiscal year 2013.
SEC. 1143. AUTHORIZATION OF APPROPRIATIONS FOR THE NATIONAL AERONAUTICS
AND SPACE ADMINISTRATION FOR RESEARCH AND DEVELOPMENT
ACTIVITIES.
There is authorized to be appropriated for the National Aeronautics
and Space Administration for research and development activities
(including research and development activities for Space Flight
Capabilities, research and development activities for Science,
Aeronautics and Exploration, and other research and development
activities), aggregate amounts as follows:
(1) $10,737,100,000 for fiscal year 2007.
(2) $11,810,810,000 for fiscal year 2008.
(3) $12,991,891,000 for fiscal year 2009.
(4) $14,291,080,000 for fiscal year 2010.
(5) $15,720,188,000 for fiscal year 2011.
(6) $17,292,207,000 for fiscal year 2012.
(7) $19,021,428,000 for fiscal year 2013.
SEC. 1144. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT OF ENERGY
FOR BASIC RESEARCH.
There is authorized to be appropriated for the Department of Energy
for the Office of Science for basic research, amounts as follows:
(1) $4,135,000,000 for fiscal year 2007.
(2) $4,548,500,000 for fiscal year 2008.
(3) $5,003,350,000 for fiscal year 2009
(4) $5,503,685,000 for fiscal year 2010.
(5) $6,054,054,000 for fiscal year 2011.
(6) $6,659,459,000 for fiscal year 2012.
(7) $7,325,405,000 for fiscal year 2013.
SEC. 1145. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL INSTITUTES OF
HEALTH FOR RESEARCH AND DEVELOPMENT.
There is authorized to be appropriated to the National Institutes
of Health for research and development, amounts as follows:
(1) $31,251,440,000 for fiscal year 2007.
(2) $34,376,584,000 for fiscal year 2008.
(3) $37,814,242,000 for fiscal year 2009.
(4) $41,595,667,000 for fiscal year 2010.
(5) $45,755,233,000 for fiscal year 2011.
(6) $50,330,757,000 for fiscal year 2012.
(7) $55,363,832,000 for fiscal year 2013.
Subtitle B--Building the Economy of the Future
CHAPTER 1--NANOTECHNOLOGY
SEC. 1211. TAX CREDIT FOR INVESTMENT IN NANOTECHNOLOGY FIRMS.
(a) In General.--Part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to credits against tax) is
amended by adding at the end the following new subpart:
``Subpart G--Nanotechnology Development Credit
``SEC. 54A. CREDIT FOR PURCHASE OF NANOTECHNOLOGY DEVELOPER STOCK.
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to the applicable percentage of the aggregate
amount paid by the taxpayer for the purchase of qualified
nanotechnology developer stock.
``(2) Applicable percentage.--For purposes of subsection
(a), the applicable percentage is--
``(A) 5.25 percent for the taxable year in which
the qualified nanotechnology developer stock is
purchased,
``(B) 3.75 percent for the taxable year following
the year in which such stock is purchased,
``(C) 3 percent for the second taxable year
following the year in which such stock is purchased,
``(D) 1.5 percent for the third taxable year
following the year in which such stock is purchased,
``(E) 1.5 percent for fourth taxable year following
the year in which such stock is purchased, and
``(F) 0 percent for any taxable year after the
fourth taxable year following the year in which such
stock is purchased.
``(b) Limitations.--
``(1) Amount of investment eligible.--No credit shall be
allowed under subsection (a) with respect to amounts paid in
any taxable year for the purchase of qualified nanotechnology
developer stock which is in excess of $10,000,000.
``(2) Application with other credits.--The credit allowed
under subsection (a) for any taxable year shall not exceed the
excess of--
``(A) the regular tax for the taxable year reduced
by the sum of the credits allowable under this part
(other than subpart C thereof), over
``(B) the tentative minimum tax for the taxable
year.
``(c) Qualified Nanotechnology Developer Stock.--For purposes of
this section--
``(1) In general.--The term `qualified nanotechnology
developer stock' means any common stock in a C corporation or
any membership unit in a State-registered limited liability
company if--
``(A) as of the date of issuance of such stock or
membership unit, such corporation or company is a
qualified nanotechnology developer,
``(B) such stock is acquired by the taxpayer at its
original issue (directly or through an underwriter) in
exchange for money or other property (not including
stock), and
``(C) the proceeds of such issue are used by such
issuer during the 5-year period beginning on the date
of issuance for the development, production, or sale of
products using nanotechnology.
``(2) Qualified nanotechnology developer.--The term
`qualified nanotechnology developer' means any entity--
``(A) which is a C corporation or limited liability
company organized under the laws of any State or of the
United States,
``(B) which is a small business concern (as defined
in section 3(a) of the Small Business Act), and
``(C) with respect to which a certification under
subsection (d) is in effect.
``(3) Nanotechnology.--The term `nanotechnology' means the
science of understanding and manipulating matter on an atomic
or molecular scale, generally to create structures, and usually
at a size smaller than 100 nanometers.
``(d) Certification.--
``(1) In general.--The Secretary, in consultation with the
National Nanotechnology Coordination Office, shall certify an
entity under this subsection if such entity demonstrates by the
submission of such information as required by the Secretary
that not less than 51 percent of its activities relate to the
development, production, and sale of products using
nanotechnology.
``(2) Revocation.--The Secretary shall revoke the
certification of any entity which is certified under paragraph
(1) if the Secretary determines that--
``(A) the proceeds from any qualified
nanotechnology developer stock issued by such entity
are used during the 5-year period following such issue
for a purpose other than the development, production,
or sale of products using nanotechnology, or
``(B) such entity no longer meets the requirements
of paragraph (1).
``(3) Submission of information.--The Secretary may require
any entity certified under paragraph (1) to provide such
information as the Secretary may require in order ensure
compliance with the purposes of this section.
``(e) Carryover of Unused Credit.--
``(1) In general.--If the credit amount allowable under
subsection (a) for a taxable year exceeds the amount of the
limitation under subsection (h) for such taxable year, such
excess shall be allowed as a credit carryforward for each of
the 20 taxable years following the unused credit year.
``(2) Rules.--Rules similar to the rules of section 39
shall apply with respect to the credit carryforward under
paragraph (1).
``(f) Recapture of Credit.--If--
``(1) the taxpayer fails to hold qualified nanotechnology
developer stock for the 7-year period beginning on the date
such stock was purchased by the taxpayer, or
``(2) during such 7-year period, the issuer of such stock
ceases to be a qualified nanotechnology developer,
then notwithstanding any other provision of this subtitle, the tax
imposed by this chapter on the taxpayer for the taxable year beginning
in the calendar year in which such cessation occurred shall be
increased by the aggregate amount of credit allowed under subsection
(a) to the taxpayer with respect to such stock.
``(g) Special Rule.--For purposes of this section, rules similar to
the rules of section 1202(c)(3) shall apply.
``(h) Basis Adjustments.--For purposes of this subtitle, if a
credit is allowed under this section for the purchase of any stock--
``(1) the increase in the basis of such stock which would
(but for this subsection) result from such purchase shall be
reduced by the amount of the credit so allowed, and
``(2) the basis of such stock shall be increased by the
amount of any increase in tax by reason of subsection (f).''.
(b) Conforming Amendment.--Subsection (a) of section 1016 of such
Code is amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting ``;
and'', and by adding at the end the following new paragraph:
``(38) to the extent provided in section 54A(h), in the
case of amounts with respect to which a credit has been allowed
under section 54A or a recapture imposed under section
54A(f).''.
(c) Clerical Amendment.--The table of subparts for part IV is
amended by adding at the end the following new item:
``subpart g. nanotechnology development credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid after December 31, 2005.
SEC. 1212. NANOTECHNOLOGY ASSISTANCE.
(a) Definitions.--In this section:
(1) Commercialization.--The term ``commercialization''
means the process of converting nanotechnology research into
products and processes that are used in the marketplace.
(2) Degree-granting institution.--The term ``degree-
granting institution'' means an institution of higher
education, as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001), that awards an associate or
baccalaureate degree.
(3) Incubator.--The term ``incubator'' means an entity
affiliated with or housed in a degree-granting institution that
provides space and coordinated and specialized services to
entrepreneurial businesses that work in the field of
nanotechnology commercialization and that meets selected
criteria during the businesses' startup phase, including
providing services such as shared office space and services,
access to equipment, access to telecommunications and
technology services, flexible leases, specialized management
assistance, access to financing, and other coordinated business
or technical support services.
(4) Nanotechnology.--The term ``nanotechnology'' means the
science of understanding and manipulating matter on an atomic
or molecular scale, generally to create structures, and usually
at a size smaller than 100 nanometers.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(b) Grants Authorized.--
(1) In general.--The Secretary is authorized to establish
within the Technology Administration of the Department of
Commerce a grant program to support the establishment and
development of incubators.
(2) Allocation of funds.--From the amount appropriated
pursuant to the authorization of appropriations in subsection
(e) for a fiscal year, the Secretary--
(A) shall use 80 percent of such amount to--
(i) make awards, on a competitive basis, in
amounts of up to $2,500,000, to help acquire or
renovate space for incubators; and
(ii) make awards, on a competitive basis,
in amounts of $50,000 to $150,000, for--
(I) developing curricula related to
nanotechnology;
(II) providing services for
commercialization, including preparing
providing services to appropriate
businesses including corporate
charters, partnership agreements, and
basic contracts, assistance with
patents, trademarks, and copyrights,
and technology acquisition services; or
(III) providing programming for
entrepreneurs working in nanotechnology
housed in an incubator;
(B) shall reserve 10 percent of the amount to make
awards, on a competitive basis, in amounts of $50,000
to $150,000, for feasibility studies for determining
the need for or siting of incubators; and
(C) shall reserve 10 percent for research regarding
best practices for incubator programs, including the
development of a benchmarking system based on uniform
measures, and for dissemination of information
regarding such practices.
(3) Contracts.--The Secretary is authorized to contract
with organizations with expertise in incubation practices for
the purposes of carrying out paragraph (2)(C).
(4) Uses of funds.--Funds awarded under paragraph
(2)(A)(ii) may be used for--
(A) curriculum, training, or technical assistance
related to nanotechnology developed by academic faculty
with participation from entrepreneurship experts;
(B) programming that contributes to a coordinated
set of business assistance tools, such as developing
management teams, providing workforce development,
forming strategic alliances, developing capital
formation networks, and developing customized plans for
commercialization; and
(C) hiring staff to coordinate the activities
described in subparagraph (A) or (B) or for curriculum
development.
(5) Recipients.--The Secretary shall make an award--
(A) described in paragraph (2)(A) to a nonprofit
entity that has a strong affiliation with a degree-
granting institution and manages or provides technical
assistance to the degree-granting institution's
affiliated incubator, or if no nonprofit entity manages
or provides technical assistance to the incubator, to
the degree-granting institution managing the incubator;
and
(B) described in paragraph (2)(B) to a degree-
granting institution.
(6) Applications.--Each entity desiring assistance under
this section shall submit an application to the Secretary at
such time, in such manner, and accompanied by such information
as the Secretary may require.
(7) Selection.--
(A) Priority.--The Secretary shall give priority to
funding applications under this subsection for
activities that--
(i) will be carried out at a facility that
is included in the Centers and Networks of
Excellence of the research and development
program known as the National Nanotechnology
Initiative;
(ii) provide strong educational
opportunities to students in fields related to
nanotechnology and commercialization; and
(iii) require significant collaboration
between businesses and academia.
(B) Consideration.--The Secretary may give
consideration to funding applications under this
subsection that support--
(i) the building of new incubators;
(ii) incubators that work with faculty
entrepreneurs or university-based research;
(iii) incubators that are located in areas
with an established venture capital industry
and other industry support, including
leadership and legal support, for
commercialization; or
(iv) incubators that have secured
additional private funding.
(c) Nanotechnology Startup Advisory Council.--
(1) Establishment.--The Secretary shall establish a
Nanotechnology Startup Advisory Council composed of industry
leaders, business and marketing professionals, venture
capitalists, attorneys, and nanotechnology researchers.
(2) Purpose.--The purpose of the Nanotechnology Start-up
Advisory Council is to ensure that emerging nanotechnology
companies create a sound foundation for new business.
(d) Report.--Not later than September 30 of the third fiscal year
during which assistance is provided under this section, the Secretary
shall prepare and submit to Congress a report that--
(1) describes the most effective or innovative additions to
curricula related to nanotechnology that were developed with
such assistance; and
(2) contains a comparison of the success of nanotechnology
companies developed in incubators that received such assistance
with the success of other nanotechnology companies;
(3) describes any factors leading to success of companies
that were developed in incubators;
(4) recommends the best role for degree-granting
institutions in commercialization; and
(5) contains a comparison of academic-affiliated incubators
of specific missions and ages that received assistance under
this section with other incubators with similar missions and
ages.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $25,000,000 for each of the
fiscal years 2007, 2008, and 2009.
CHAPTER 2--INVESTING IN HIGH-TECH MANUFACTURING
SEC. 1221. MANUFACTURING EXTENSION PARTNERSHIP PROGRAM.
(a) In General.--There is authorized to be appropriated for the
National Institute of Standards and Technology for the Manufacturing
Extension Partnership Program amounts as follows:
(1) For fiscal year 2007, $212,000,000.
(2) For fiscal year 2008, $272,000,000.
(3) For fiscal year 2009, $332,000,000.
(4) For fiscal year 2010, $392,000,000.
(5) For fiscal year 2011, $452,000,000.
(6) For fiscal year 2012, $512,000,000.
(7) For fiscal year 2013, $572,000,000.
(8) For fiscal year 2014, $632,000,000.
(9) For fiscal year 2015, $692,000,000.
(10) For fiscal year 2016, $752,000,000.
(11) For fiscal year 2017, $812,000,000.
(b) Manufacturing Extension Partnership Program Defined.--In this
section, the term ``Manufacturing Extension Partnership Program'' means
the program of 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. 1222. ADVANCED TECHNOLOGY PROGRAM.
There are authorized to be appropriated for the National Institute
of Standards and Technology for carrying out the Advanced Technology
Program under section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n), $320,000,000 for each of the fiscal
years 2007 through 2016.
CHAPTER 3--DOMESTIC VACCINES
SEC. 1231. INCENTIVES FOR THE CONSTRUCTION OF DOMESTIC VACCINE
MANUFACTURING FACILITIES.
(a) Domestic Vaccine Manufacturing Facilities Investment Tax
Credit.--
(1) Allowance of credit.--Section 46 of the Internal
Revenue Code of 1986 (relating to amount of investment credit)
is amended by striking ``and'' at the end of paragraph (3), by
striking the period at the end of paragraph (4) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(5) the vaccine manufacturing facilities investment
credit.''.
(2) Amount of credit.--Subpart E of part IV of subchapter A
of chapter 1 of such Code is amended inserting after section
45B the following new section:
``SEC. 48C. VACCINE MANUFACTURING FACILITIES INVESTMENT CREDIT
``(a) In General.--For purposes of section 46, the vaccine
manufacturing facilities investment credit for any taxable year is an
amount equal to 10 percent of the qualified investment for such taxable
year.
``(b) Qualified Investment.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of each vaccine
manufacturing facilities property placed in service by the taxpayer
during such taxable year.
``(c) Vaccine Manufacturing Facilities Property.--For purposes of
this section, the term `vaccine manufacturing facilities property'
means real and tangible personal property--
``(1) the original use of which commences with the
taxpayer,
``(2) which is depreciable under section 167, with a class
life of less than 20 years,
``(3) which is substantially used for the manufacture or
research and development of vaccines or antibiotics or
antiviral agents which are widely considered potentially useful
for the prevention or containment of public health crises, and
``(4) which is in compliance with any standards and
regulations which are promulgated by the Food and Drug
Administration, the Occupational Safety and Health
Administration, or the Environmental Protection Agency and
which are applicable to such property.
``(d) Certain Progress Expenditure Rules Made Applicable.--Rules
similar to rules of subsections (c)(4) and (d) of section 46 (as in
effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990) shall apply for purposes of this
subsection.''.
(b) Technical Amendments.--
(1) Subparagraph (C) of section 49(a)(1) of such Code is
amended by striking ``and'' at the end of clause (iii), by
striking the period at the end of clause (iv) and inserting ``,
and'', and by adding at the end the following new clause:
``(v) the basis of any vaccine
manufacturing facilities property under section
48C.''.
(2) Subparagraph (E) of section 50(a)(2) of such Code is
amended by inserting ``or 48C(d)'' before the period.
(3) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the item relating to section 48B and inserting the following:
``Sec. 48C. Vaccine manufacturing facilities investment credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this Act under
rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of enactment of
the Revenue Reconciliation Act of 1990).
CHAPTER 4--PROGRAMS AND TAX CREDITS TO INCREASE ENERGY EFFICIENCY
SEC. 1241. GRANT PROGRAM FOR GREEN BUILDING AND ZERO-ENERGY HOME DESIGN
AND CONSTRUCTION TRAINING.
(a) In General.--The Secretary of Education, in consultation with
the Secretary of Energy, may award grants to postsecondary educational
institutions to enable the institutions to train 10,000 individuals in
green building and zero-energy home design and construction by fiscal
year 2011.
(b) Application.--A postsecondary educational institution that
desires to receive a grant under this section shall submit an
application to the Secretary of Education at such time, in such manner,
and accompanied by such information as the Secretary of Education may
reasonably require.
(c) Reimbursement.--
(1) In general.--A postsecondary educational institution
that receives a grant under this section shall use the grant
funds to reimburse an individual who completes training in
zero-energy home design and construction at, and receives
accreditation as a green building professional from, the
institution for an amount that is not more than 50 percent of
the amount the individual paid to receive the training at the
institution.
(2) Determination of amount.--For purposes of calculating
the amount of the reimbursement under paragraph (1), the amount
the individual paid to receive the training at the institution
shall be reduced by the amount of any other grants received by
the individual for the training.
(3) Effect on other federal loans.--A reimbursement
provided to an individual under paragraph (1) shall not affect
the eligibility of the individual for other Federal loans,
including student loans.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 1242. EXTENSION OF CERTAIN TAX CREDITS FOR SOLAR ENERGY.
(a) Extension of Residential Renewable Energy Efficient Property
Credit Through 2012.--Section 25D(g) of the Internal Revenue Code of
1986 is amended to read as follows:
``(g) Termination.--The credit allowed under this section shall not
apply to--
``(1) property described in paragraph (1) or (2) of
subsection (d) placed in service after December 31, 2012, and
``(2) property described in subsection (d)(3) placed in
service after December 31, 2007.''.
(b) Extension of Renewable Energy Investment Tax Credit Through
2012.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the
Internal Revenue Code of 1986 (relating to energy credit) is amended by
striking ``2008'' both places it appears and inserting ``2013''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 1243. TAX CREDIT FOR PURCHASING GREEN POWER.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to other credits) is
amended by adding at the end the following new section:
``SEC. 30D. CREDIT FOR GREEN PRICING PREMIUMS.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to 50
percent of the green pricing premiums paid by the taxpayer during the
taxable year.
``(b) Application With Other Credits.--The credit allowed by
subsection (a) for any taxable year shall not exceed the excess (if
any) of--
``(1) the regular tax for the taxable year reduced by the
sum of the credits allowable under subpart A and sections 27,
30, 30B, and 30C, over
``(2) the tentative minimum tax for the taxable year.
``(c) Definitions.--For purposes of this section:
``(1) Green pricing premium.--The term `green pricing
premium' means the excess of the amount paid, pursuant to a
qualified green power program, for green power electricity over
the market price for electricity produced from non-renewable
resources.
``(2) Green power electricity.--The term `green power
electricity' means electricity produced from wind, solar,
geothermal, biomass, biogas, and low-impact hydropower sources.
``(3) Qualified green power program.--The term `qualified
green power program' means a voluntary program--
``(A) under which an electric utility offers to
customers of the electric utility the opportunity to
pay a green pricing premium for the purchase of green
power electricity; and
``(B) that is approved by the Secretary, in
consultation with the Secretary of Energy.''.
(b) Conforming Amendments.--
(1) Section 55(c)(2) of the Internal Revenue Code of 1986
is amended by inserting ``30D(b),'' after ``30C(d)(2),''.
(2) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:
``Sec. 30D. Credit for green pricing premiums.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid after December 31, 2005.
CHAPTER 5--RENEWABLE PORTFOLIO STANDARD
SEC. 1251. RENEWABLE PORTFOLIO STANDARD.
Title VI of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2601 et seq.) is amended by adding at the end the following:
``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.
``(a) Renewable Energy Requirement.--
``(1) In general.--Not later than January 1, 2020, each
electric utility that sells electricity to electric consumers
shall obtain 20 percent of the base amount of electricity the
electric utility sells to electric consumers in a calendar year
from new renewable energy or existing renewable energy, of
which at least 1 percent shall be obtained from distributed
resources.
``(2) Means of compliance.--An electric utility shall meet
the requirements of paragraph (1) by--
``(A) generating electric energy using new
renewable energy or existing renewable energy;
``(B) purchasing electric energy generated by new
renewable energy or existing renewable energy;
``(C) purchasing renewable energy credits issued
under subsection (b); or
``(D) a combination of the foregoing.
``(b) Renewable Energy Credit Trading Program.--
``(1) In general.--Not later than January 1, 2010, the
Secretary shall establish a renewable energy credit trading
program for electric utilities that permits a utility that does
not obtain enough electricity from renewable energy sources to
meet its obligations under subsection (a)(1) to satisfy such
obligations by purchasing renewable energy credits.
``(2) Requirements.--As part of the program established
under paragraph (1), the Secretary shall--
``(A) issue regulations binding utilities to a
schedule of gradual increases in the percentage or
amount of electricity obtained from renewable energy
sources and sold to consumers, including distributed
sources, prior to the 20 percent level mandated for
January 1, 2020;
``(B) issue annually 1 renewable energy credit for
each kilowatt hour of electricity obtained from
renewable energy sources and sold to consumers in the
prior calendar year;
``(C) establish civil penalties of no less than the
going market value of a renewable energy credit, and
levy those penalties against utilities that fail to
obtain the required percentage or amount of renewable
energy credits;
``(D) monitor the sale or exchange of, and track,
renewable energy credits; and
``(E) except as provided for in subsection (f)(1),
ensure that any renewable energy credit shall be used
only once for compliance with this section.
``(c) Enforcement.--
``(1) Insufficient distributed sources civil penalty.--The
amount of the civil penalty for not meeting the 1 percent
distributed resources requirement under subsection (a)(1) shall
be the greater of--
``(A) the product of the number of kilowatt hours
of electricity sold to consumers in violation of the
requirement and 10 cents; and
``(B) an amount equal to twice the civil penalties
established under subsection (b)(2)(C).
``(2) Mitigation or waiver.--The Secretary may mitigate or
waive a civil penalty under subsection (b)(2)(C) or this
subsection if the electric utility--
``(A) was unable to comply with subsection (a) for
reasons outside of the reasonable control of the
utility; or
``(B) is developing a new renewable energy source
for use in the generation of electricity that will--
``(i) be in use before January 1, 2020; and
``(ii) satisfy a significant percentage of
the 20 percent renewable energy requirement of
the electric utility under subsection (a)(1).
``(d) Prohibition on Increasing Rates To Pay Fines.--An electric
utility shall not raise ratepayer rates to cover civil penalties
established under subsection (b)(2)(C) or (c)(1).
``(e) Use.--In addition to amounts made available under section
7101(d), amounts received by the Secretary as a civil penalty under
subsection (b)(2)(C) or (c)(1) shall be used to--
``(1) provide grants under section 7101(a); and
``(2) comply with any renewable energy requirements
applicable to the Federal Government.
``(f) State Programs.--
``(1) Calculation of renewable energy requirement.--In
calculating the number of kilowatt hours of electricity a
utility obtained from new or existing renewable energy sources
and sold to consumers in a year in order to issue an equal
number of renewable energy credits, the Secretary may include
kilowatt hours of electricity a utility obtained from new and
existing renewable energy sources and sold to consumers in the
same year in order to meet a State law or regulation.
``(2) Effect.--Nothing in this section diminishes any
authority of a State or political subdivision of a State to
adopt or enforce any law (including a regulation) with respect
to renewable energy, if the law does not conflict with this
section.
``(g) Definitions.--For purposes of this section:
``(1) Distributed generation facility.--The term
`distributed generation facility' means a facility at a
customer site.
``(2) Distributed resource.--The term `distributed
resource' means a renewable energy resource located at the
point of use or the customer side of the meter.
``(3) Existing renewable energy.--The term `existing
renewable energy' means electric energy generated at a facility
(including a distributed generation facility) placed in service
prior to the date of enactment of this section from solar,
wind, or geothermal energy; ocean energy; biomass (as defined
in section 203(b) of the Energy Policy Act of 2005); or
landfill gas.
``(4) New renewable energy.--The term `new renewable
energy' means electric energy generated at a facility
(including a distributed generation facility) placed in service
on or after the date of enactment of this section from--
``(A) solar, wind, or geothermal energy or ocean
energy;
``(B) biomass (as defined in section 203(b) of the
Energy Policy Act of 2005);
``(C) landfill gas; or
``(D) incremental hydropower.
``(5) Ocean energy.--The term `ocean energy' includes
current, wave, tidal, and thermal energy.
``(h) Sunset.--This section expires on December 31, 2030.''.
CHAPTER 6--IMPROVING THE EFFICIENCY OF HEALTH CARE TO ENHANCE AMERICA'S
ECONOMIC COMPETITIVENESS
Subchapter A--Improving Information Provided to Patients
SEC. 1261. REQUIREMENT FOR HEALTH INSURERS TO IMPLEMENT COMPUTERIZED
CLAIMS PROCESSING SYSTEMS.
(a) In General.--Not later than 7 years after the date of enactment
of this Act, each group health plan and health insurance issuer
offering health insurance coverage shall have in effect an automated,
integrated system that allows for efficient and effective adjudication
of claims and the detection of fraud and abuse in accordance with this
section.
(b) Elements of Adjudication.--The system described in subsection
(a) shall include determinations concerning payments and coverage for
items or services under the terms and conditions of the plan or
coverage involved, including any cost-sharing amount that the
participant, beneficiary, or enrollee is required to pay with respect
to such claim.
(c) Timeframe.--The plan or issuer shall complete the adjudication
of claims under this section immediately after the plan or issuer
receives--
(1) the claim; and
(2) any additional information requested by the plan or
issuer that is necessary to make a determination relating to
the claim.
(d) Accuracy.--In adjudicating claims under this section the plan
or issuer shall ensure that--
(1) such claims are adjudicated with an accuracy of at
least 99 percent;
(2) the plan or issuer has the ability to accept claims
submitted via the Internet; and
(3) the plan or issuer has the ability to issue denials
where necessary instantaneously via the Internet, and to
provide an opportunity for challenge to and resolution of such
denials (except in cases of dispute over medical necessity) via
the Internet.
(e) Detection System.--Not later than 2 years after the date of
enactment of this Act, each group health plan and health insurance
issuer offering health insurance coverage shall use the system
described in subsection (a) to detect fraud and abuse in real-time as
part of the adjudication of claims under this section.
(f) Regulations.--The Secretary shall issue such regulations as may
be necessary or appropriate to carry out this section.
SEC. 1262. MAKING HEALTH CARE MORE RESPONSIVE TO THE CONSUMER.
(a) Statement of Account for Consumers.--
(1) In General.--Not later than 7 years after the date of
enactment of this Act, each group health plan and health
insurance issuer offering health insurance coverage shall have
in effect a computerized system that provides each participant,
beneficiary, or enrollee with a statement of account that--
(A) includes information, with respect to the
participant, beneficiary, or enrollee, on--
(i) claims received, claims denied, and the
reasons for any denials;
(ii) status of coverage; and
(iii) deductible information; and
(B) is issued quarterly.
(2) Internet access.--The plan or issuer may comply with
this subsection by making the quarterly statements available on
the Internet 24 hours a day, 7 days a week, through a secure
website.
(b) Statement of Account for Employers and Purchases.--Not later
than 7 years after the date of enactment of this Act, each group health
plan and health insurance issuer shall have in effect a computerized
system to provide to employers and other purchasers of health insurance
products a statement of account that--
(1) includes--
(A) current information on coverage status; and
(B) reports of customer satisfaction that are
updated annually; and
(2) is available 24 hours a day, 7 days a week, through--
(A) the Internet through a secure website; or
(B) a toll-free telephone number.
(c) Internet Enrollment.--
(1) In general.--Not later than 7 years after the date of
enactment of this Act, each group health plan and health
insurance issuer shall have in effect a computerized system to
provide to employers and other purchasers of health insurance
products an option to enroll for coverage under such health
insurance products on the Internet through a secure website.
(2) Eligibility requirements.--The Internet website
described in paragraph (1) shall include information on
eligibility requirements for coverage.
(d) Consumer Explanation of Benefits.--
(1) In general.--Not later than 7 years after the date of
enactment of this Act, each group health plan and health
insurance issuer shall have in effect a computerized system to
provide, to a participant, beneficiary, or enrollee--
(A) an explanation of benefits at the point of
service or not later than 48 hours after the time that
service is provided; and
(B) a description of the coverage and cost of each
services provided to the participant, beneficiary, or
enrollee under the plan or coverage.
(2) Language.--Any explanation of benefits under this
subsection shall be provided in a printed form and written in a
manner calculated to be understood by the average participant,
beneficiary, or enrollee.
(e) Referrals and Authorizations.--
(1) In general.--Not later than 7 years after the date of
enactment of this Act, each group health plan and health
insurance issuer shall have in effect a computerized system for
making and checking referrals and pre-authorizations where such
referrals and pre-authorizations are required under the plan or
coverage.
(2) Access.--The system described in paragraph (1) shall
permit access by physicians and by participants, beneficiaries,
and enrollees to information on the completion of referrals and
pre-authorizations and whether health care services and
products have been authorized, through--
(A) the Internet through a secure website; or
(B) a toll-free telephone number.
(f) Patient Claim History.--Not later than 7 years after the date
of enactment of this Act, each group health plan and health insurance
issuer shall establish a system--
(1) by which a health care provider may, with patient
authorization, have access to the patient's statement of
account, as described in subsection (a); and
(2) that is accessible through--
(A) the Internet through a secure website; or
(B) a toll-free telephone number.
(g) Modernizing Financial Transactions in Health Care.--Not later
than 7 years after the date of enactment of this Act, each group health
plan and health insurance issuer offering health insurance coverage
shall have in effect a computerized system that--
(1) permits health care providers to receive claim payments
through electronic transfer of funds;
(2) permits participants, beneficiaries, and enrollees to
make payments for deductibles through electronic transfer of
funds; and
(3) provides automated, integrated audit controls to
monitor any duplicate payments or overpayments within the
adjudication system.
SEC. 1263. REGULATIONS.
The Secretary shall issue such regulations as may be necessary or
appropriate to carry out this title.
Subchapter B--Application to Public Health Service Act and Employee
Retirement Income Security Act of 1974
SEC. 1271. APPLICATION TO GROUP HEALTH PLANS AND GROUP HEALTH INSURANCE
COVERAGE UNDER THE PUBLIC HEALTH SERVICE ACT.
(a) In General.--Subpart 2 of part A of title XXVII of the Public
Health Service Act is amended by adding at the end the following new
section:
``SEC. 2707. HEALTH CARE MODERNIZATION STANDARDS.
``Each group health plan shall comply with health care
modernization requirements under subchapter A of chapter 6 of subtitle
B of title I of the Right Time to Reinvest in America's Competitiveness
and Knowledge Act, and each health insurance issuer shall comply with
health care modernization requirements under such subtitle with respect
to group health insurance coverage it offers, and such requirements
shall be deemed to be incorporated into this section.''.
(b) Conforming Amendment.--Section 2721(b)(2)(A) of such Act (42
U.S.C. 300gg-21(b)(2)(A)) is amended by inserting ``(other than section
2707)'' after ``requirements of such subparts''.
SEC. 1272. APPLICATION TO INDIVIDUAL HEALTH INSURANCE COVERAGE UNDER
THE PUBLIC HEALTH SERVICE ACT.
Part B of title XXVII of the Public Health Service Act is amended
by inserting after section 2752 the following new section:
``SEC. 2753. HEALTH CARE MODERNIZATION STANDARDS.
``Each health insurance issuer shall comply with health care
modernization requirements under subchapter A of chapter 6 of subtitle
B of title I of the Right Time to Reinvest in America's Competitiveness
and Knowledge Act with respect to individual health insurance coverage
it offers, and such requirements shall be deemed to be incorporated
into this section.''.
SEC. 1273. APPLICATION TO GROUP HEALTH PLANS AND GROUP HEALTH INSURANCE
COVERAGE UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974.
Subpart B of part 7 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 is amended by adding at the end
the following new section:
``SEC. 714. HEALTH CARE MODERNIZATION STANDARDS.
``A group health plan (and a health insurance issuer offering group
health insurance coverage in connection with such a plan) shall comply
with the requirements of subchapter A of chapter 6 of subtitle B of
title I of the Right Time to Reinvest in America's Competitiveness and
Knowledge Act (as in effect as of the date of the enactment of such
Act), and such requirements shall be deemed to be incorporated into
this section.''.
Subchapter C--Miscellaneous Provisions
SEC. 1281. DEFINITIONS.
In this title:
(1) Claim.--The term ``claim'' means any request for
coverage (including authorization of coverage), for
eligibility, or for payment in whole or in part, for an item or
service under a group health plan or health insurance coverage.
(2) Cost-sharing.--The term ``cost-sharing'' means any
deductibles, coinsurance, copayment amounts, and liability for
balance billing, for which the participant, beneficiary, or
enrollee will be responsible.
(3) Enrollee.--The term ``enrollee'' means, with respect to
health insurance coverage offered by a health insurance issuer,
an individual enrolled with the issuer to receive such
coverage.
(4) Group health plan.--The term ``group health plan'' has
the meaning given such term in section 733(a) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1191b(a)).
(5) Health care provider.--The term ``health care
provider'' has the meaning given such term in section
1855(d)(5) of the Social Security Act (42 U.S.C. 1395w-
25(d)(5)).
(6) Health insurance issuer.--The term ``health insurance
issuer'' has the meaning given such term in section 733(b) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1191b(b)).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
SEC. 1282. EFFECT ON STATE LAW.
Nothing in this title or any amendment made by this title shall be
construed to diminish the obligation of a nonprofit health care
provider, health care facility, group health plan, or health insurance
issuer to comply with any State law that provides greater rights
relating to health care modernization to participants, beneficiaries,
or enrollees than the rights established under this title or any
amendment made by this title.
Subtitle C--Supporting the Infrastructure Our Economy Needs
CHAPTER 1--CREATING A NATIONAL BROADBAND POLICY
SEC. 1311. NATIONAL BROADBAND POLICY.
(a) Findings.--Congress finds as follows:
(1) In 2004, President George W. Bush declared that the
United States should have ``universal, affordable access for
broadband technology by 2007''.
(2) Instead, the United States has fallen to 16th in global
rankings of broadband penetration, behind South Korea, Japan,
and urban China.
(3) The United Sates is the only G7 nation without a
national broadband policy.
(4) Economists assert that widespread adoption of basic
broadband could add $500,000,000,000 to the economy of the
United States and create 1,200,000 new jobs.
(b) Broadband Policy.--
(1) Responsibility of president's council of advisors on
science and technology.--
(A) In general.--Not later than December 31, 2006,
the President's Council of Advisors on Science and
Technology (in this section referred to as the
``Council''), shall--
(i) establish a national broadband policy
for improving and expanding broadband access in
the United States by 2010; and
(ii) develop a strategy and make
recommendations to the President and Congress
on how to best achieve such policy.
(B) President's council.--The Council, under
Executive Order No. 13385 of September 29, 2005, was
assigned all responsibilities formerly performed by the
President's Information Technology Advisory Committee,
as such Committee was authorized under section 101(b)
of the High-Performance Computing Act of 1991 (15
U.S.C. 5511(b)) and established by Executive Order No.
13035 of February 11, 1997, as amended by Executive
Order No. 13092 of July 24, 1998.
(2) Content of policy.--As part of the policy established
under paragraph (1), the Council shall develop and propose
strategies and goals relating to the following:
(A) Basic broadband access.--
(i) Goal.--To provide basic broadband
access at an affordable price to all households
in the United States.
(ii) Considerations.--In developing
strategies related to the goal described under
clause (i), the Council shall consider
incentives to ensure that rural and underserved
areas receive basic broadband access,
including--
(I) tax credits;
(II) debt guarantees;
(III) trust funds; and
(IV) expensing allowances.
(iii) Definition.--For purposes of this
subparagraph, the term ``basic broadband''
means a communications service enabling the
reliable transmission of communications that
is--
(I) at least 1 megabit per second
in both directions; and
(II) connected at all times.
(B) High-speed broadband access.--
(i) Goal.--To provide high-speed broadband
access at an affordable price to \2/3\ of all
households in the United States.
(ii) Considerations.--In developing
strategies related to the goal described under
clause (i), the Council shall consider how to
create a more competitive environment for the
provision of high-speed broadband over--
(I) digital subscriber lines;
(II) cable lines;
(III) power lines; and
(IV) wireless broadband
technologies.
(iii) Definition.--For purposes of this
subparagraph, the term ``high-speed broadband''
means a communications service enabling the
transmission of communications at a capacity
that is at least 22 megabits per second.
(C) Ultra high-speed broadband fiber access.--
(i) Goal.--To provide ultra high-speed
broadband fiber access to \1/3\ of all
households in the United States.
(ii) Considerations.--In developing
strategies related to the goal described under
clause (i), the Council shall consider, in
consultation with interested stakeholders, the
extent to which unused existing fiber that run
below city streets can be preserved and used to
achieve such goal.
(iii) Definition.--For purposes of this
subparagraph, the term ``ultra high-speed
broadband'' means a communications service
enabling the transmission of communications at
a capacity that is at least 100 megabits per
second.
(D) High-speed broadband access in public
institutions.--
(i) Goal.--To provide high-speed broadband
access at an affordable price to all public
schools, universities, libraries, and hospitals
in the United States.
(ii) Definition.--For purposes of this
subparagraph, the term ``high-speed broadband''
has the same meaning as in subparagraph
(B)(iii).
(E) Comprehensive cellular infrastructure.--To
create a comprehensive, nationwide, cellular
infrastructure to enable the convergence of wireline
and wireless technologies that provide ``anytime,
anywhere, any-device connections''.
(c) Additional Responsibilities of the Council.--
(1) Examination and report on proposed and existing
telecommunication strategies.--In addition to its
responsibilities under subsection (b), not later than December
31, 2006, the Council shall examine and make recommendations to
the President, Congress, the Commissioner of the Federal
Communications Commission, the Secretary of Commerce, and any
other Federal agency the Council determines appropriate, on
proposed and existing telecommunication strategies--
(A) to ensure that rural and underserved
communities have access to broadband technology,
including strategies relating to the--
(i) deployment of municipal wireless-
fidelity; and
(ii) expansion of the universal service
fund established under section 254 of the
Communications Act of 1934 (47 U.S.C. 254) to
support broadband access; and
(B) to promote usage of, to encourage investment
in, and to stimulate consumer uptake of current and
next generation broadband networks, including
strategies relating to the elimination of barriers and
creation of incentives for developing applications in--
(i) communications;
(ii) healthcare;
(iii) distance learning;
(iv) telecommuting;
(v) distributed energy;
(vi) eGovernment; and
(vii) entertainment.
(2) Consideration of principles.--In making any
recommendations under paragraph (1), the Council shall consider
the following principles:
(A) Affordable, highly advanced, and secure
communications services should be available to all
Americans and communities.
(B) Broadband connections should be as reliable as
other basic service connections, such as electricity
and telephone service.
(C) Access to broadband service should be provided
without limitations on usage or prioritization of data
by broadband providers.
(D) Speeds of connectivity for the sending and
receiving of data over broadband services should be the
same.
(E) Competitive market forces, with regulation as
necessary, should be the principle means of achieving
any goal under this subsection.
(F) Minimal disruption to existing services should
be achieved through targeted efforts.
(d) Report on progress of national policy.--
(1) In general.--Not later than December 31, 2006, and
every December 31 thereafter until 2010, the Council shall
evaluate and submit a report to Congress on the progress made
in implementing the strategies and achieving the goals and
recommendations established in subsection (b).
(2) Content of report.--
(A) Prior to 2010.--Prior to January 1, 2010, each
report submitted under paragraph (1) shall include an
accurate count of--
(i) Americans with access to broadband
services; and
(ii) the number of homes and businesses
that use--
(I) basic broadband service;
(II) high-speed broadband service;
and
(III) ultra high-speed broadband
service.
(B) For 2010.--The report submitted under paragraph
(1) on or after January 1, 2010, and not later than
December 31, 2010, shall include recommendations of the
Council to Congress on establishing reasonable--
(i) goals for broadband penetration in the
future; and
(ii) Congressional expectations for--
(I) broadband connection speeds;
and
(II) broadband usage in light of
advances in broadband technology.
CHAPTER 2--AMTRAK REAUTHORIZATION
SEC. 1321. AUTHORIZATION FOR AMTRAK OPERATING GRANTS.
There are authorized to be appropriated to the Secretary of
Transportation for operating costs of Amtrak the following amounts:
(1) For fiscal year 2007, $570,000,000.
(2) For fiscal year 2008, $570,000,000.
(3) For fiscal year 2009, $570,000,000.
SEC. 1322. AUTHORIZATION FOR AMTRAK CAPITAL GRANTS.
There are authorized to be appropriated to the Secretary of
Transportation for the use of Amtrak to bring the Northeast Corridor
(as defined in section 24102(a) of title 49, United States Code) to a
state of good repair, for capital expenses of the national railroad
passenger transportation system, and for purposes of making capital
grants to States, the following amounts:
(1) For fiscal year 2007, $858,000,000.
(2) For fiscal year 2008, $788,000,000.
(3) For fiscal year 2009, $767,000,000.
SEC. 1323. AUTHORIZATION FOR REPAYMENT OF LONG-TERM DEBT AND CAPITAL
LEASES.
(a) Principal and Interest on Debt.--There are authorized to be
appropriated to the Secretary of Transportation for the use of Amtrak
for the payment of principal and interest on loans for capital
equipment, or capital leases, the following amounts:
(1) For fiscal year 2007, $357,000,000.
(2) For fiscal year 2008, $305,000,000.
(3) For fiscal year 2009, $306,000,000.
(b) Early Buyout Option.--There are authorized to be appropriated
to the Secretary of Transportation such sums as may be necessary for
the use of Amtrak for the payment of costs associated with early buyout
options if the Secretary determines that the exercise of those options
is advantageous to Amtrak.
(c) Legal Effect of Payments Under This Section.--The payment of
principal and interest on secured debt, with the proceeds of the grants
authorized by this section, shall not--
(1) modify the extent or nature of any indebtedness of the
National Railroad Passenger Corporation to the United States in
existence on the date of enactment of this Act;
(2) change the private nature of the liabilities of Amtrak
or its successors; or
(3) imply any Federal guarantee or commitment to amortize
Amtrak's outstanding indebtedness.
CHAPTER 3--INVESTING IN SCHOOL INFRASTRUCTURE
SEC. 1331. SHORT TITLE.
This chapter may be cited as the ``America's Better Classroom Act
of 2006''.
SEC. 1332. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.
(a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subchapter:
``Subchapter Z--Public School Modernization Provisions
``Sec. 1400U. Credit to holders of
qualified public school
modernization bonds.
``Sec. 1400V. Qualified school
construction bonds.
``Sec. 1400W. Qualified zone academy
bonds.
``Sec. 1400X. Qualified tribal school
modernization bonds.
``SEC. 1400U. CREDIT TO HOLDERS OF QUALIFIED PUBLIC SCHOOL
MODERNIZATION BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
qualified public school modernization bond on a credit allowance date
of such bond which occurs during the taxable year, there shall be
allowed as a credit against the tax imposed by this chapter for such
taxable year an amount equal to the sum of the credits determined under
subsection (b) with respect to credit allowance dates during such year
on which the taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified public school modernization bond is 25 percent
of the annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified public school modernization bond is
the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(1), the applicable credit rate with respect to an issue is the
rate equal to an average market yield (as of the day before the
date of issuance of the issue) on outstanding long-term
corporate debt obligations (determined under regulations
prescribed by the Secretary).
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under part
IV of subchapter A (other than subpart C thereof,
relating to refundable credits and subpart H thereof).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year.
``(d) Qualified Public School Modernization Bond; Credit Allowance
Date.--For purposes of this section--
``(1) Qualified public school modernization bond.--The term
`qualified public school modernization bond' means--
``(A) a qualified zone academy bond,
``(B) a qualified school construction bond, and
``(C) a qualified tribal school modernization bond.
``(2) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Local educational agency.--The term `local
educational agency' has the meaning given to such term by
section 9101 of the Elementary and Secondary Education Act of
1965. Such term includes the local educational agency that
serves the District of Columbia but does not include any other
State agency.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Public school facility.--The term `public school
facility' shall not include--
``(A) any stadium or other facility primarily used
for athletic contests or exhibitions or other events
for which admission is charged to the general public,
or
``(B) any facility which is not owned by a State or
local government or any agency or instrumentality of a
State or local government.
``(f) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
``(g) Recapture of Portion of Credit Where Cessation of
Compliance.--
``(1) In general.--If any bond which when issued purported
to be a qualified public school modernization bond ceases to be
a qualified public school modernization bond, the issuer shall
pay to the United States (at the time required by the
Secretary) an amount equal to the sum of--
``(A) the aggregate of the credits allowable under
this section with respect to such bond (determined
without regard to subsection (c)) for taxable years
ending during the calendar year in which such cessation
occurs and the 2 preceding calendar years, and
``(B) interest at the underpayment rate under
section 6621 on the amount determined under
subparagraph (A) for each calendar year for the period
beginning on the first day of such calendar year.
``(2) Failure to pay.--If the issuer fails to timely pay
the amount required by paragraph (1) with respect to such bond,
the tax imposed by this chapter on each holder of any such bond
which is part of such issue shall be increased (for the taxable
year of the holder in which such cessation occurs) by the
aggregate decrease in the credits allowed under this section to
such holder for taxable years beginning in such 3 calendar
years which would have resulted solely from denying any credit
under this section with respect to such issue for such taxable
years.
``(3) Special rules.--
``(A) Tax benefit rule.--The tax for the taxable
year shall be increased under paragraph (2) only with
respect to credits allowed by reason of this section
which were used to reduce tax liability. In the case of
credits not so used to reduce tax liability, the
carryforwards and carrybacks under section 39 shall be
appropriately adjusted.
``(B) No credits against tax.--Any increase in tax
under paragraph (2) shall not be treated as a tax
imposed by this chapter for purposes of determining--
``(i) the amount of any credit allowable
under this subchapter, or
``(ii) the amount of the tax imposed by
section 55.
``(h) Bonds Held by Regulated Investment Companies.--If any
qualified public school modernization bond is held by a regulated
investment company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures prescribed by
the Secretary.
``(i) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified public school
modernization bond and the entitlement to the credit under this
section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to
the person who on the credit allowance date holds the
instrument evidencing the entitlement to the credit and not to
the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified public school modernization bond as if
it were a stripped bond and to the credit under this section as
if it were a stripped coupon.
``(j) Treatment for Estimated Tax Purposes.--Solely for purposes of
sections 6654 and 6655, the credit allowed by this section to a
taxpayer by reason of holding a qualified public school modernization
bond on a credit allowance date shall be treated as if it were a
payment of estimated tax made by the taxpayer on such date.
``(k) Credit May Be Transferred.--Nothing in any law or rule of law
shall be construed to limit the transferability of the credit allowed
by this section through sale and repurchase agreements.
``(l) Reporting.--Issuers of qualified public school modernization
bonds shall submit reports similar to the reports required under
section 149(e).
``(m) Credit Treated as Nonrefundable Bondholder Credit.--For
purposes of this title, the credit allowed by this section shall be
treated as a credit allowable under subpart H of part IV of subchapter
A of this chapter.
``(n) Termination.--This section shall not apply to any bond issued
after September 30, 2008 (December 31, 2013, in the case of any
qualified tribal school modernization bond).
``SEC. 1400V. QUALIFIED SCHOOL CONSTRUCTION BONDS.
``(a) Qualified School Construction Bond.--For purposes of this
subchapter, the term `qualified school construction bond' means any
bond issued as part of an issue if--
``(1) 95 percent or more of the proceeds of such issue are
to be used for the construction, rehabilitation, or repair of a
public school facility or for the acquisition of land on which
such a facility is to be constructed with part of the proceeds
of such issue,
``(2) the bond is issued by a State or local government
within the jurisdiction of which such school is located,
``(3) the issuer designates such bond for purposes of this
section, and
``(4) the term of each bond which is part of such issue
does not exceed 15 years.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds issued during any calendar year which
may be designated under subsection (a) by any issuer shall not exceed
the limitation amount allocated under subsection (d) for such calendar
year to such issuer.
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified school construction bond limitation for each
calendar year. Such limitation is--
``(1) $11,000,000,000 for 2007,
``(2) $11,000,000,000 for 2008, and
``(3) except as provided in subsection (f), zero after
2008.
``(d) Limitation Allocated Among States.--
``(1) In general.--The limitation applicable under
subsection (c) for any calendar year shall be allocated by the
Secretary among the States in proportion to the respective
amounts each such State received for basic grants under section
1124 of the Elementary and Secondary Education Act of 1965 for
the most recent fiscal year ending before such calendar year.
The limitation amount allocated to a State under the preceding
sentence shall be allocated by the State to issuers within such
State.
``(2) Minimum allocations to states.--
``(A) In general.--The Secretary shall adjust the
allocations under this subsection for any calendar year
for each State to the extent necessary to ensure that
the amount allocated to such State under this
subsection for such year is not less than an amount
equal to such State's minimum percentage of the amount
to be allocated under paragraph (1) for the calendar
year.
``(B) Minimum percentage.--A State's minimum
percentage for any calendar year is the minimum
percentage described in section 1124(d) of the
Elementary and Secondary Education Act of 1965 for such
State for the most recent fiscal year ending before
such calendar year.
``(3) Allocations to certain possessions.--The amount to be
allocated under paragraph (1) to any possession of the United
States other than Puerto Rico shall be the amount which would
have been allocated if all allocations under paragraph (1) were
made on the basis of respective populations of individuals
below the poverty line (as defined by the Office of Management
and Budget). In making other allocations, the amount to be
allocated under paragraph (1) shall be reduced by the aggregate
amount allocated under this paragraph to possessions of the
United States.
``(e) Carryover of Unused Limitation.--If for any calendar year--
``(1) the amount allocated under subsection (d) to any
State, exceeds
``(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such
excess. A similar rule shall apply to the amounts allocated under
subsection (d)(4).
``(f) Special Rules Relating to Arbitrage.--
``(1) In general.--A bond shall not be treated as failing
to meet the requirement of subsection (a)(1) solely by reason
of the fact that the proceeds of the issue of which such bond
is a part are invested for a temporary period (but not more
than 36 months) until such proceeds are needed for the purpose
for which such issue was issued.
``(2) Binding commitment requirement.--Paragraph (1) shall
apply to an issue only if, as of the date of issuance, there is
a reasonable expectation that--
``(A) at least 10 percent of the proceeds of the
issue will be spent within the 6-month period beginning
on such date for the purpose for which such issue was
issued, and
``(B) the remaining proceeds of the issue will be
spent with due diligence for such purpose.
``(3) Earnings on proceeds.--Any earnings on proceeds
during the temporary period shall be treated as proceeds of the
issue for purposes of applying subsection (a)(1) and paragraph
(1) of this subsection.
``SEC. 1400W. QUALIFIED ZONE ACADEMY BONDS.
``(a) Qualified Zone Academy Bond.--For purposes of this
subchapter--
``(1) In general.--The term `qualified zone academy bond'
means any bond issued as part of an issue if--
``(A) 95 percent or more of the proceeds of such
issue are to be used for a qualified purpose with
respect to a qualified zone academy established by a
local educational agency,
``(B) the bond is issued by a State or local
government within the jurisdiction of which such
academy is located,
``(C) the issuer--
``(i) designates such bond for purposes of
this section,
``(ii) certifies that it has written
assurances that the private business
contribution requirement of paragraph (2) will
be met with respect to such academy, and
``(iii) certifies that it has the written
approval of the local educational agency for
such bond issuance, and
``(D) the term of each bond which is part of such
issue does not exceed 15 years.
Rules similar to the rules of section 1400V(f) shall apply for
purposes of subparagraph (A).
``(2) Private business contribution requirement.--
``(A) In general.--For purposes of paragraph (1),
the private business contribution requirement of this
paragraph is met with respect to any issue if the local
educational agency that established the qualified zone
academy has written commitments from private entities
to make qualified contributions having a present value
(as of the date of issuance of the issue) of not less
than 10 percent of the proceeds of the issue.
``(B) Qualified contributions.--For purposes of
subparagraph (A), the term `qualified contribution'
means any contribution (of a type and quality
acceptable to the local educational agency) of--
``(i) equipment for use in the qualified
zone academy (including state-of-the-art
technology and vocational equipment),
``(ii) technical assistance in developing
curriculum or in training teachers in order to
promote appropriate market driven technology in
the classroom,
``(iii) services of employees as volunteer
mentors,
``(iv) internships, field trips, or other
educational opportunities outside the academy
for students, or
``(v) any other property or service
specified by the local educational agency.
``(3) Qualified zone academy.--The term `qualified zone
academy' means any public school (or academic program within a
public school) which is established by and operated under the
supervision of a local educational agency to provide education
or training below the postsecondary level if--
``(A) such public school or program (as the case
may be) is designed in cooperation with business to
enhance the academic curriculum, increase graduation
and employment rates, and better prepare students for
the rigors of college and the increasingly complex
workforce,
``(B) students in such public school or program (as
the case may be) will be subject to the same academic
standards and assessments as other students educated by
the local educational agency,
``(C) the comprehensive education plan of such
public school or program is approved by the local
educational agency, and
``(D)(i) such public school is located in an
empowerment zone or enterprise community (including any
such zone or community designated after the date of the
enactment of this section), or
``(ii) there is a reasonable expectation (as of the
date of issuance of the bonds) that at least 35 percent
of the students attending such school or participating
in such program (as the case may be) will be eligible
for free or reduced-cost lunches under the school lunch
program established under the Richard B. Russell
National School Lunch Act.
``(4) Qualified purpose.--The term `qualified purpose'
means, with respect to any qualified zone academy--
``(A) constructing, rehabilitating, or repairing
the public school facility in which the academy is
established,
``(B) acquiring the land on which such facility is
to be constructed with part of the proceeds of such
issue,
``(C) providing equipment for use at such academy,
``(D) developing course materials for education to
be provided at such academy, and
``(E) training teachers and other school personnel
in such academy.
``(b) Limitations on Amount of Bonds Designated.--
``(1) In general.--There is a national zone academy bond
limitation for each calendar year. Such limitation is--
``(A) $400,000,000 for 1998,
``(B) $400,000,000 for 1999,
``(C) $400,000,000 for 2000,
``(D) $400,000,000 for 2001,
``(E) $400,000,000 for 2002,
``(F) $400,000,000 for 2003,
``(G) $400,000,000 for 2004,
``(H) $400,000,000 for 2005,
``(I) $1,400,000,000 for 2006,
``(J) $1,400,000,000 for 2007, and
``(K) except as provided in paragraph (3), zero
after 2007.
``(2) Allocation of limitation.--
``(A) Allocation among states.--
``(i) Pre-2006 limitations.--The national
zone academy bond limitations for calendar
years before 2006 shall be allocated by the
Secretary among the States on the basis of
their respective populations of individuals
below the poverty line (as defined by the
Office of Management and Budget).
``(ii) Limitation after 2005.--The national
zone academy bond limitation for any calendar
year after 2005 shall be allocated by the
Secretary among the States in proportion to the
respective amounts each such State received for
basic grants under section 1124 of the
Elementary and Secondary Education Act of 1965
for the most recent fiscal year ending before
such calendar year.
``(B) Allocation to local educational agencies.--
The limitation amount allocated to a State under
subparagraph (A) shall be allocated by the State to
qualified zone academies within such State.
``(C) Designation subject to limitation amount.--
The maximum aggregate face amount of bonds issued
during any calendar year which may be designated under
subsection (a) with respect to any qualified zone
academy shall not exceed the limitation amount
allocated to such academy under subparagraph (B) for
such calendar year.
``(3) Carryover of unused limitation.--If for any calendar
year--
``(A) the limitation amount under this subsection
for any State, exceeds
``(B) the amount of bonds issued during such year
which are designated under subsection (a) (or the
corresponding provisions of prior law) with respect to
qualified zone academies within such State,
the limitation amount under this subsection for such State for
the following calendar year shall be increased by the amount of
such excess.
``SEC. 1400X. QUALIFIED TRIBAL SCHOOL MODERNIZATION BONDS.
``(a) Qualified Tribal School Modernization Bond.--For purposes of
this subchapter--
``(1) In general.--The term `qualified tribal school
modernization bond' means, subject to paragraph (2), any bond
issued as part of an issue under section 1333 of the America's
Better Classroom Act of 2006, as in effect on the date of the
enactment of this section, if--
``(A) 95 percent or more of the proceeds of such
issue are to be used for the construction,
rehabilitation, or repair of a school facility funded
by the Bureau of Indian Affairs of the Department of
the Interior or for the acquisition of land on which
such a facility is to be constructed with part of the
proceeds of such issue,
``(B) the bond is issued by an Indian tribe,
``(C) the issuer designates such bond for purposes
of this section, and
``(D) the term of each bond which is part of such
issue does not exceed 15 years.
``(2) National limitation on amount of bonds designated.--
``(A) National limitation.--There is a national
qualified tribal school modernization bond limitation
for each calendar year. Such limitation is--
``(i) $200,000,000 for 2006,
``(ii) $200,000,000 for 2007, and
``(iii) zero after 2007.
``(B) Allocation of limitation.--The national
qualified tribal school modernization bond limitation
shall be allocated to Indian tribes by the Secretary of
the Interior subject to the provisions of section 1333
of the America's Better Classroom Act of 2006, as in
effect on the date of the enactment of this section.
``(C) Designation subject to limitation amount.--
The maximum aggregate face amount of bonds issued
during any calendar year which may be designated under
paragraph (1) with respect to any Indian tribe shall
not exceed the limitation amount allocated to such
government under subparagraph (B) for such calendar
year.
``(D) Carryover of unused limitation.--If for any
calendar year--
``(i) the limitation amount under this
paragraph, exceeds
``(ii) the amount of qualified tribal
school modernization bonds issued during such
year, the limitation amount under this
paragraph for the following calendar year shall
be increased by the amount of such excess. The
preceding sentence shall not apply if such
following calendar year is after 2014.
``(b) Tribe.--For purposes of this section, the term `tribe' has
the meaning given the term `Indian tribal government' by section
7701(a)(40), including the application of section 7871(d). Such term
includes any consortium of tribes approved by the Secretary of the
Interior.''.
(b) Reporting.--Subsection (d) of section 6049 of such Code
(relating to returns regarding payments of interest) is amended by
adding at the end the following new paragraph:
``(9) Reporting of credit on qualified public school
modernization bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 1400U(f) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 1400U(d)(2)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) Subchapter U of chapter 1 of such Code is amended by
striking part IV, by redesignating part V as part IV, and by
redesignating section 1397F as section 1397E.
(2) The table of subchapters for chapter 1 of such Code is
amended by adding at the end the following new item:
``Subchapter Z. Public school
modernization provisions.''.
(3) The table of parts of subchapter U of chapter 1 of such
Code is amended by striking the last 2 items and inserting the
following item:
``Part IV. Regulations.''.
(d) Sovereign Immunity.--This section and the amendments made by
this section shall not be construed to impact, limit, or affect the
sovereign immunity of the Federal Government or any State or local
tribal government.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
obligations issued after December 31, 2005.
(2) Repeal of restriction on zone academy bond holders.--In
the case of bonds to which section 1397E of the Internal
Revenue Code of 1986 (as in effect before the date of the
enactment of this Act) applies, the limitation of such section
to eligible taxpayers (as defined in subsection (d)(6) of such
section) shall not apply after the date of the enactment of
this Act.
SEC. 1333. INDIAN SCHOOL CONSTRUCTION.
(a) Definitions.--In this section:
(1) Bureau.--The term ``Bureau'' means the Bureau of Indian
Affairs of the Department.
(2) Department.--The term ``Department'' means the
Department of the Interior.
(3) Escrow account.--The term ``escrow account'' means the
tribal school modernization escrow account established under
subsection (b)(6)(B)(i).
(4) Indian.--The term ``Indian'' means any individual who
is a member of an Indian tribe.
(5) Indian tribe.--
(A) In general.--The term ``Indian tribe'' has the
meaning given the term ``Indian tribal government'' by
section 7701(a)(40) of the Internal Revenue Code of
1986 (including the application of section 7871(d) of
that Code).
(B) Inclusion.--The term ``Indian tribe'' includes
a consortium of Indian tribes approved by the
Secretary.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(7) Tribal school.--The term ``tribal school'' means an
elementary school, secondary school, or dormitory that--
(A) is operated by a tribal organization or the
Bureau for the education of Indian children; and
(B) under a contract, a grant, or an agreement, or
for a Bureau-operated school, receives financial
assistance to pay the costs of operation from funds
made available under--
(i) section 102, 103(a), or 208 of the
Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450f, 450h(a), 458d);
or
(ii) the Tribally Controlled Schools Act of
1988 (25 U.S.C. 2501 et seq.).
(b) Issuance of Bonds.--
(1) In general.--The Secretary shall establish a pilot
program under which eligible Indian tribes may issue qualified
tribal school modernization bonds to provide funding for the
construction, rehabilitation, or repair of tribal schools
(including the advance planning and design of tribal schools).
(2) Eligibility.--
(A) In general.--To be eligible to issue any
qualified tribal school modernization bond under the
program under paragraph (1), an Indian tribe shall--
(i) prepare and submit to the Secretary a
plan of construction that meets the
requirements of subparagraph (B);
(ii) provide for quarterly and final
inspection of the project by the Bureau; and
(iii) pledge that the facilities financed
by the bond will be used primarily for
elementary and secondary educational purposes
for not less than the period during which the
bond remains outstanding.
(B) Plan of construction.--A plan of construction
referred to in subparagraph (A)(i) meets the
requirements of this subparagraph if the plan--
(i) contains a description of the
construction to be carried out with funding
provided under a qualified tribal school
modernization bond;
(ii) demonstrates that a comprehensive
survey has been completed to determine the
construction needs of the tribal school
involved;
(iii) contains assurances that funding
under the bond will be used only for the
activities described in the plan;
(iv) contains a response to the evaluation
criteria contained in Instructions and
Application for Replacement School
Construction, Revision 6, dated February 6,
1999; and
(v) contains any other reasonable and
related information determined to be
appropriate by the Secretary.
(C) Priority.--In determining whether an Indian
tribe is eligible to participate in the program under
this subsection, the Secretary shall give priority to
an Indian tribe that, as demonstrated by the relevant
plans of construction, will fund projects--
(i) described in the Education Facilities
Replacement Construction Priorities List, as of
fiscal year 2000, of the Bureau (65 Fed. Reg.
4623);
(ii) described in any subsequent priorities
list published in the Federal Register; or
(iii) that meet the criteria for ranking
schools as described in Instructions and
Application for Replacement School
Construction, Revision 6, dated February 6,
1999.
(D) Advance planning and design funding.--
(i) In general.--An Indian tribe may
propose in the plan of construction of the
Indian tribe to receive advance planning and
design funding from the escrow account.
(ii) Conditions on allocation of funds.--As
a condition to the allocation to an Indian
tribe of advance planning and design funds from
the escrow account under clause (i), the Indian
tribe shall agree--
(I) to issue qualified tribal
school modernization bonds after the
date of receipt of the funds; and
(II) as a condition of each bond
issuance, that the Indian tribe will
deposit into the escrow account, or a
fund managed by the trustee as
described in paragraph (4)(C), an
amount equal to the amount of funds
received from the escrow account.
(3) Permissible activities.--In addition to the use of
funds permitted under paragraph (1), an Indian tribe may use
amounts received through the issuance of a qualified tribal
school modernization bond--
(A) to enter into and make payments under contracts
with licensed and bonded architects, engineers, and
construction firms--
(i) to determine the needs of the tribal
school; and
(ii) for the design and engineering of the
tribal school;
(B) enter into and make payments under contracts
with financial advisers, underwriters, attorneys,
trustees, and other professionals who would be able to
provide assistance to the Indian tribe in issuing
bonds; and
(C) carry out other activities determined to be
appropriate by the Secretary.
(4) Bond trustee.--
(A) In general.--Notwithstanding any other
provision of law, any qualified tribal school
modernization bond issued by an Indian tribe under this
subsection shall be subject to a trust agreement
between the Indian tribe and a trustee.
(B) Trustee.--Any bank or trust company that meets
requirements established by the Secretary may be
designated as a trustee under subparagraph (A).
(C) Content of trust agreement.--A trust agreement
entered into by an Indian tribe under this paragraph
shall specify that the trustee, with respect to any
bond issued under this subsection, shall--
(i) act as a repository for the proceeds of
the bond;
(ii) make payments to bondholders;
(iii) receive, as a condition to the
issuance of the bond, a transfer of funds from
the escrow account, or from other funds
furnished by or on behalf of the Indian tribe,
in an amount that (including interest earnings
from the investment of the funds in obligations
of, or fully guaranteed by, the United States,
or from other investments authorized by
paragraph (10)) will produce funds sufficient
to timely pay in full the entire principal
amount of the bond on the stated maturity date
of the bond;
(iv) invest the funds transferred under
clause (iii) in an investment described in that
clause; and
(v)(I) hold and invest the funds
transferred under clause (iii) in a segregated
fund or account under the agreement; and
(II) use the fund or account solely for
payment of the costs of items described in
paragraph (3).
(D) Requirements for making direct payments.--
(i) Payments.--
(I) In general.--Notwithstanding
any other provision of law, the trustee
shall make any payment referred to in
subparagraph (C)(v) in accordance with
such requirements as the Indian tribe
shall prescribe in the trust agreement
entered into under subparagraph (C).
(II) Inspection.--Before making a
payment for a project to a contractor
under subparagraph (C)(v), to ensure
completion of the project, the trustee
shall require an inspection of the
project by--
(aa) a local financial
institution; or
(bb) an independent
inspecting architect or
engineer.
(ii) Contracts.--Each contract referred to
in paragraph (3) shall specify, or be
renegotiated to specify, that payments under
the contract shall be made in accordance with
this paragraph.
(5) Payments of principal and interest.--
(A) Principal.--
(i) In general.--No principal payment on
any qualified tribal school modernization bond
shall be required under this subsection until
the final, stated date on which the bond
reaches maturity.
(ii) Maturity; outstanding principal.--With
respect to a qualified tribal school
modernization bond issued under this
subsection--
(I) the bond shall reach maturity
not later than 15 years after the date
of issuance of the bond; and
(II) on the date on which the bond
reaches maturity, the entire
outstanding principal under the bond
shall become due and payable.
(B) Interest.--There shall be awarded a tax credit
under section 1400U of the Internal Revenue Code of
1986 in lieu of interest on a qualified tribal school
modernization bond issued under this subsection.
(6) Bond guarantees.--
(A) In general.--Payment of the principal portion
of a qualified tribal school modernization bond issued
under this subsection shall be guaranteed solely by
amounts deposited with each respective bond trustee as
described in paragraph (4)(C)(iii).
(B) Establishment of account.--
(i) In general.--Notwithstanding any other
provision of law, the Secretary may--
(I) establish a tribal school
modernization escrow account; and
(II) beginning in fiscal year 2007,
from amounts made available for school
replacement under the construction
account of the Bureau, deposit not more
than $30,000,000 for each fiscal year
into the escrow account.
(ii) Transfers of excess proceeds.--Excess
proceeds held under any trust agreement that
are not needed for any of the purposes
described in clauses (iii) and (v) of paragraph
(4)(C) shall be transferred, from time to time,
by the trustee for deposit into the escrow
account.
(iii) Payments.--The Secretary shall use
any amounts deposited in the escrow account
under clauses (i) and (ii)--
(I) to make payments to trustees
appointed and acting in accordance with
paragraph (4); or
(II) to make payments described in
paragraph (2)(D).
(7) Limitations.--
(A) Obligation to repay.--
(i) In general.--Notwithstanding any other
provision of law, the principal amount on any
qualified tribal school modernization bond
issued under this subsection shall be repaid
only to the extent of any escrowed funds
provided under paragraph (4)(C)(iii).
(ii) No guarantee.--No qualified tribal
school modernization bond issued by an Indian
tribe under this subsection shall be an
obligation of, and no payment of the principal
of such a bond shall be guaranteed by--
(I) the United States;
(II) the Indian tribe; or
(III) the tribal school for which
the bond was issued.
(B) Land and facilities.--No land or facility
purchased or improved with amounts derived from a
qualified tribal school modernization bond issued under
this subsection shall be mortgaged or used as
collateral for the bond.
(8) Sale of bonds.--A qualified tribal school modernization
bond may be sold at a purchase price equal to, in excess of, or
at a discount from, the par amount of the bond.
(9) Treatment of trust agreement earnings.--No amount
earned through the investment of funds under the control of a
trustee under any trust agreement described in paragraph (4)
shall be subject to Federal income taxation.
(10) Investment of sinking funds.--A sinking fund
established for the purpose of the payment of principal on a
qualified tribal school modernization bond issued under this
subsection shall be invested in--
(A) obligations issued by or guaranteed by the
United States; or
(B) such other assets as the Secretary of the
Treasury may by regulation allow.
SEC. 1334. APPLICATION OF CERTAIN LABOR STANDARDS ON CONSTRUCTION
PROJECTS FINANCED UNDER PUBLIC SCHOOL MODERNIZATION
PROGRAM.
Section 439 of the General Education Provisions Act (20 U.S.C.
1232b) is amended--
(1) by inserting ``(a)'' before ``All laborers and
mechanics''; and
(2) by adding at the end the following:
``(b)(1) For purposes of this section, the term `applicable
program' also includes the qualified zone academy bond provisions
enacted by section 226 of the Taxpayer Relief Act of 1997 and the
program established by section 1332 of the America's Better Classroom
Act of 2006.
``(2) A State or local government participating in a program
described in paragraph (1) shall--
``(A) in the awarding of contracts, give priority to
contractors with substantial numbers of employees residing in
the school district to be served by the school being
constructed; and
``(B) include in the construction contract for such school
a requirement that the contractor give priority in hiring new
workers to individuals residing in such school district.
``(3) In the case of a program described in paragraph (1), nothing
in this subsection or subsection (a) shall be construed to deny any tax
credit allowed under such program. If amounts are required to be
withheld from contractors to pay wages to which workers are entitled,
such amounts shall be treated as expended for construction purposes in
determining whether the requirements of such program are met.''.
SEC. 1335. TRAINING SERVICES RELATING TO CONSTRUCTION OR RECONSTRUCTION
OF PUBLIC SCHOOL FACILITIES.
(a) In General.--Section 134(d) of the Workforce Investment Act of
1998 (29 U.S.C. 2864(d)) is amended by adding at the end the following:
``(5) Training services relating to construction or
reconstruction of public school facilities.--
``(A) In general.--The Governor of each State, and
each local board in the State, shall ensure that each
one-stop center in the State provides training services
related to construction or reconstruction of public
school facilities receiving funding assistance under an
applicable program.
``(B) Specialized program.--The provider of such
services shall establish a specialized program of
training services meeting the following requirements:
``(i) The specialized program provides
training for jobs in the construction industry.
``(ii) The specialized program provides
trained workers for projects for the
construction or reconstruction of public school
facilities receiving funding assistance under
an applicable program.
``(iii) The specialized program ensures
that skilled workers (residing in the area to
be served by the school facilities) will be
available for the construction or
reconstruction work.
``(C) Coordination.--
``(i) In general.--The specialized program
established under subparagraph (B) shall be
integrated with other activities carried out
under this Act, with the activities carried out
under the Act of August 16, 1937 (commonly
known as the `National Apprenticeship Act', 50
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.)
by the State apprenticeship council or agency
or through the Bureau of Apprenticeship and
Training in the Department of Labor, as
appropriate, and with activities carried out
under the Carl D. Perkins Vocational and
Technical Education Act of 1998 (20 U.S.C. 2301
et seq.).
``(ii) Construction.--Nothing in this
paragraph shall be construed to require
services duplicative of the activities referred
to in clause (i).
``(D) Applicable program.--In this subsection, the
term `applicable program' has the meaning given the
term in section 400(c) of the General Education
Provisions Act (20 U.S.C. 1221(c)) or in 439(b) of such
Act (as added by section 1334 of the Right Time to
Reinvest in America's Competitiveness and Knowledge
Act).''.
(b) State Plan.--Section 112(b)(17)(A) of the Workforce Investment
Act of 1998 (29 U.S.C. 2822(b)(17)(A)) is amended--
(1) in clause (iii), by striking ``and'' at the end;
(2) by redesignating clause (iv) as clause (v); and
(3) by inserting after clause (iii) the following:
``(iv) how the Governor of the State, and
each local board in the State, will ensure that
each one-stop center in the State will provide
a specialized program of training services
under section 134(d)(5); and''.
TITLE II--EDUCATE AMERICANS TO FILL THE JOBS OF THE FUTURE
SEC. 2001. SHORT TITLE.
This title may be cited as the ``New National Defense Education
Act''.
SEC. 2002. FINDINGS.
Congress finds the following:
(1) Throughout our Nation's history, the skills and
education of our workforce have been a major determinant of the
standard of living of the people of the United States.
(2) Spurred into action by the launch of Sputnik, Congress
passed the National Defense Education Act of 1958 (Public Law
85-864, 72 Stat. 1580). The law, now nearly 50 years old,
declared a national ``educational emergency'', and Federal
expenditures for education more than doubled in the 4 years
after its passage. The programs authorized under the Act helped
the United States to improve rapidly in mathematics, science,
engineering, technology, and foreign languages and led to our
dominance in the arms race and the global economy.
(3) Today, our Nation once again faces an international
challenge in education: we must confront a shortage of highly
skilled and educated workers, especially in mathematics,
science, engineering, technology, and critical-need foreign
languages. As a percentage of total first university degrees
granted, the United States produced fewer graduates in
mathematics, science, and engineering in 2002 than the Nation
did in 1985. Currently, the United States Government requires
34,000 employees with foreign language skills in 100 languages
across more than 80 Federal agencies. These trends pose a
threat to our national security and our economic security.
(4) Student achievement in mathematics and science in
elementary school and secondary school lags behind other
nations, according to the Trends in International Mathematics
and Science study and other studies, including the Programme
for International Student Assessment, that recently ranked
United States secondary school students 28th out of 40 first-
and second-world nations, and tied with Latvia, in mathematics
performance and problem solving.
(5) According to the most recent National Assessment of
Educational Progress, less than 40 percent of the students in
grade 4 and 30 percent of the students in grade 8, and only 17
percent of the students in grade 12, reach the proficient level
in mathematics, and approximately \1/3\ of the students in
grades 4 and 8, and nearly \1/2\ of the students in grade 12,
do not reach the basic level in science.
(6) A State-by-State comparison of the 2005 National
Assessment of Educational Progress average scale scores for 8th
grade mathematics reveals that 31 States--more than \1/2\ of
the States in the Nation--scored more than 10 points (about 1
grade level) below the highest scoring State, Massachusetts.
(7) More than 200,000,000 children in China are studying
English, a compulsory subject for all Chinese primary school
students. By comparison, only about 24,000 of approximately
54,000,000 elementary and secondary school children in the
United States are studying Chinese.
(8) There is a significant shortage of trained and
qualified mathematics and science teachers in the United
States. According to the National Science Board, in 2002,
between 17 and 28 percent of public secondary school science
teachers (depending on the specific scientific field), and 20
percent of public secondary school mathematics teachers, lacked
full certification in their teaching field.
(9) More than \1/2\ of the 20 fastest growing occupations
require postsecondary degrees in mathematics or science.
According to the National Science Board, out of more than
15,000,000 college students, less than 400,000 Americans a year
graduate with a bachelor's degree in mathematics, science,
engineering, or technology. According to the National Science
Foundation, only 75,000 American undergraduate students obtain
a master's degree in mathematics, science, engineering, or
technology.
(10) In a 2002 Government Accountability Office report, the
United States Army reported that it was experiencing serious
shortfalls of translators and interpreters in 5 of its 6
critical languages: Arabic, Korean, Mandarin Chinese, Persian-
Farsi, and Russian. According to the Modern Language
Association, enrollment in foreign languages declined from 16
percent of college students in 1965 to 8 percent in 1974,
rebounding to just 8.6 percent in 2002. Less commonly taught
languages accounted for only 12 percent of all language
enrollments. This means that 1 percent of American
undergraduate students are studying these critical languages.
(11) In 2002, 79 percent of Americans agreed that students
should have a study-abroad experience sometime during college.
Only 1 percent of all United States undergraduate students
studied abroad in the 2001-2002 school year.
(12) The Government Accountability Office estimates that
the number of students enrolled in science, technology,
engineering, or mathematics doctoral degree programs at United
States institutions of higher education declined from 217,395
during the 1995-1996 academic year to 198,504 during the 2003-
2004 academic year.
(13) The extent of this crisis requires a coordinated
Federal response and an increased Federal investment in
programs of the Department of Education and the National
Science Foundation.
Subtitle A--Modernizing America's Education System
CHAPTER 1--PREKINDERGARTEN THROUGH GRADE 16 EDUCATION
SEC. 2111. PURPOSES.
The purposes of this chapter are the following:
(1) To ensure students receive an education competitive
with other industrialized countries.
(2) To assist States in improving the rigor of standards
and assessments.
(3) To provide for the establishment of prekindergarten
through grade 16 student preparedness councils to better link
early childhood education and school readiness with elementary
school success, elementary student skills with success in
secondary school, and secondary student skills and curricula,
especially with respect to reading, mathematics, and science,
with the demands of higher education, the 21st century
workforce, and the Armed Forces, in order to--
(A) ensure that greater number of students,
especially low-income and minority students, complete
secondary school with the coursework and skills
necessary to enter--
(i) credit-bearing coursework in higher
education without the need for remediation;
(ii) high-paying employment in the 21st
century workforce; or
(iii) the Armed Forces.
(4) To establish a system that encourages local educational
agencies to adopt a curriculum that meets State academic
content standards and student academic achievement standards
and prepares all students for success in elementary school,
secondary school, and post-secondary endeavors in the 21st
century.
SEC. 2112. DEFINITIONS.
In this chapter:
(1) In general.--The terms ``elementary school'', ``limited
English proficient'', ``local educational agency'',
``scientifically based research'', ``secondary school'',
``Secretary'', and ``State educational agency'' have the
meanings given such terms in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(2) Academic content standards; student academic
achievement standards.--The terms ``academic content
standards'' and ``student academic achievement standards'',
when used with respect to a particular State, mean the academic
content standards and student academic achievement standards
adopted by a State under section 1111(b)(1) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1)).
(3) 21st century curriculum.--The term ``21st century
curriculum'' means a course of study identified by a State as
preparing secondary school students for entrance into credit-
bearing coursework in higher education without the need for
remediation, employment in the 21st century workforce, or
entrance into the Armed Forces. A State shall define the 21st
century curriculum in terms of content as well as course names.
(4) End of course examination.--The term ``end of course
examination'' means an assessment of student learning given at
the end of a particular course that is used to measure student
learning of State academic content standards in the subject
matter of the course.
(5) Graduation rate.--The term ``graduation rate'' means
the percentage of students who graduate from secondary school
with a regular diploma in the standard number of years.
(6) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(7) Professional development.--The term ``professional
development'' includes activities that--
(A) improve and increase teachers' knowledge of the
academic subjects the teachers teach, and enable
teachers to become highly qualified;
(B) are an integral part of broad educational
improvement plans across the school and across the
local educational agency;
(C) give teachers, principals, and administrators
the knowledge and skills to provide students with the
opportunity to meet the State academic content
standards and student academic achievement standards
and the 21st century curriculum demands;
(D) are high-quality, sustained, intensive, and
classroom-focused, in order to have a positive and
lasting effect on classroom instruction and the
teacher's performance in the classroom;
(E) advance teacher understanding of effective
instructional strategies that are based on
scientifically based research and are directly aligned
with the State academic content standards and State
assessments;
(F) are designed to give teachers the knowledge and
skills to provide instruction and appropriate language
and academic support services to limited English
proficient students and students with special needs,
including the appropriate use of curricula and
assessments;
(G) are, as a whole, regularly evaluated for their
impact on increased teacher effectiveness and improved
student academic achievement, with the findings of the
evaluations used to improve the quality of professional
development; and
(H) include instruction in the use of data and
assessments to inform and instruct classroom practice.
(8) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Federated
States of Micronesia, and the Republic of Palau.
(9) State assessment.--The term ``State assessment'', when
used with respect to a particular State, means the student
academic assessments implemented by the State pursuant to
section 1111(b)(3) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6311(b)(3)).
(10) Student preparedness.--The term ``student
preparedness'' means preparedness based on the knowledge and
skills that--
(A) are prerequisites for entrance into--
(i) credit-bearing coursework in higher
education without the need for remediation;
(ii) the 21st century workforce; and
(iii) the Armed Forces;
(B) can be measured and verified objectively using
widely accepted professional assessment standards; and
(C) are consistent with widely accepted
professional assessment standards and competitive with
international levels of preparedness of students for
postsecondary success.
SEC. 2113. ALIGNING STATE STANDARDS WITH NATIONAL BENCHMARKS.
(a) Report on Results of State Assessments and National
Assessment.--Not later than 90 days after each release of the results
of the National Assessment of Educational Progress (as carried out
under section 303(b)(2) of the National Assessment of Educational
Progress Authorization Act (20 U.S.C. 9622(b)(2)) and section
1111(c)(2) of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311(c)(2)) in reading or mathematics (or, beginning in 2009,
science) in grades 4 and 8, the Secretary shall--
(1) prepare and submit to Congress the report described in
subsection (b) on the results of the State assessments and the
assessments of reading and mathematics, and, beginning in 2009,
science, in grades 4 and 8, required under section 1111(c)(2)
of the Elementary and Secondary Education Act of 1965; and
(2) identify States with significant discrepancies in
performance between the 2 assessments, as described in
subsection (b)(3).
(b) Contents of Report.--
(1) In general.--The report described in this subsection
shall include the following information for each subject area
and grade described in subsection (a)(1) in each State:
(A) The percentage of students who performed at or
above the basic level on the State assessment--
(i) for the most recent applicable year;
(ii) for the preceding year; and
(iii) for the previous year in which the
assessment required under section 1111(c)(2) of
the Elementary and Secondary Education Act of
1965 was given in such subject,
and the change in such percentages between those
assessments.
(B) The percentage of students who performed at or
above the proficient level on the State assessment--
(i) for the most recent applicable year;
(ii) for the preceding year; and
(iii) for the previous year in which the
assessment required under section 1111(c)(2) of
the Elementary and Secondary Education Act of
1965 was given in such subject,
and the change in such percentages between those
assessments.
(C) The percentage of students who performed at or
above the basic level on the assessment required under
section 1111(c)(2) of the Elementary and Secondary
Education Act of 1965--
(i) for the most recent applicable year;
and
(ii) for the previous such assessment,
and the change in such percentages between those
assessments.
(D) The percentage of students who performed at or
above the proficient level on the assessment required
under section 1111(c)(2) of the Elementary and
Secondary Education Act of 1965--
(i) for the most recent applicable year;
and
(ii) for the previous such assessment,
and the change in such percentages between those
assessments.
(E) The difference between--
(i) the percentage of students who
performed at or above the basic level for the
most recent applicable year on the assessment
required under section 1111(c)(2) of the
Elementary and Secondary Education Act of 1965;
and
(ii) the percentage of students who
performed at or above the basic level on the
State assessment for such year.
(F) The difference between--
(i) the percentage of students who
performed at or above the proficient level for
the most recent applicable year on the
assessment required under section 1111(c)(2) of
the Elementary and Secondary Education Act of
1965; and
(ii) the percentage of students who
performed at or above the proficient level on
the State assessment for such year.
(2) Analysis.--In addition to the information described in
paragraph (1), the Secretary shall include in the report--
(A) an analysis of how the achievement of students
in grades 4, 8, and 12, and the preparedness of
students in grade 12 (when such data on preparedness
exists from assessments described in section 303 of the
National Assessment of Educational Progress
Authorization Act), in the United States compares to
the achievement and preparedness of students in other
industrialized countries; and
(B) possible reasons for any deficiencies
identified in the achievement or preparedness of United
States students compared to students in other
industrialized countries.
(3) Ranking.--The Secretary shall--
(A) using the information described in paragraph
(1), rank the States according to the degree to which
student performance on State assessments differs from
performance on the assessments required under section
1111(c)(2) of the Elementary and Secondary Education
Act of 1965; and
(B) identify those States with the most significant
discrepancies in performance between the State
assessments and the assessments required under section
1111(c)(2) of the Elementary and Secondary Education
Act of 1965.
(c) Report on State Progress.--Beginning 5 years after the date of
enactment of this Act, the Secretary shall include in the report
described in subsection (a)(1) the following:
(1) Information about the progress made by States to
decrease discrepancies in student performance on the State
assessments and the assessments required under section
1111(c)(2) of the Elementary and Secondary Education Act of
1965.
(2) The differences that exist in States across subject
areas and grades.
SEC. 2114. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS CHANGES.
(a) National Assessment Governing Board.--Section 302 of the
National Assessment of Educational Progress Authorization Act (20
U.S.C. 9621) is amended--
(1) in subsection (a), by striking ``shall formulate'' and
all that follows through the period at the end and inserting
``shall--
``(1) formulate policy guidelines for the National
Assessment of Educational Progress (carried out under section
303); and
``(2) carry out, upon the request of a State, an alignment
analysis (under section 304) comparing a State's academic
content standards and student academic achievement standards
adopted under section 1111(b)(1) of the Elementary and
Secondary Education Act of 1965, assessment specifications,
assessment questions, and performance standards with national
benchmarks reflected in the assessments authorized under this
Act.'';
(2) in subsection (b)(1), by adding at the end the
following:
``(O) One representative of the Armed Forces with
expertise in military personnel requirements and
military preparedness, who shall serve as an ex-
officio, nonvoting member.'';
(3) in subsection (c), by striking paragraph (4);
(4) in subsection (e)--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting ``and
grade 12 student preparedness levels'' after
``achievement levels'';
(ii) in subparagraph (D), by inserting
``members of the business and military
communities,'' after ``parents,'';
(iii) in subparagraph (E), by inserting
``and'' after ``subject matter,'';
(iv) by redesignating subparagraphs (G),
(H), (I), and (J) as subparagraphs (H), (I),
(K), and (L), respectively;
(v) by inserting after subparagraph (F) the
following:
``(G) consistent with section 303, measure grade 12
student preparedness;'';
(vi) by inserting after subparagraph (I)
(as redesignated by clause (iv)) the following:
``(J) ensure the rigor of the National Assessment
of Educational Progress framework and assessments,
taking into consideration--
``(i) the knowledge and skills that are
prerequisite to credit-bearing coursework in
higher education without the need for
remediation, the 21st century workforce, and
the Armed Forces; and
``(ii) rigorous international content and
performance standards, and how the achievement
of students in grades 4, 8, and 12, and the
preparedness of students in grade 12, in the
United States compare to the achievement and
the preparedness of students in other
industrialized countries;'';
(vii) in subparagraph (K) (as redesignated
by clause (iv)), by striking ``and'' after the
semicolon;
(viii) in subparagraph (L) (as redesignated
by clause (iv)), by striking the period and
inserting ``; and'';
(ix) by inserting after subparagraph (L)
the following:
``(M) conduct an alignment analysis as described in
section 304 for each State that requests such
analysis.''; and
(x) in the flush matter at the end--
(I) by inserting ``for an
assessment'' after ``data'';
(II) by inserting ``Assessment
Board's'' after ``prior to the''; and
(III) by striking ``(J)'' and
inserting ``(L)'';
(B) in paragraph (4), by inserting ``of Educational
Progress'' after ``National Assessment'';
(C) in paragraph (5), in the paragraph heading, by
inserting ``advice'' after ``Technical''; and
(D) in paragraph (6), by inserting ``or grade 12
student preparedness levels'' after ``student
achievement levels''; and
(5) in subsection (g)(1), by inserting ``of Educational
Progress'' after ``National Assessment''.
(b) National Assessment of Educational Progress.--Section 303 of
the National Assessment of Educational Progress Authorization Act (20
U.S.C. 9622) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking
``Purpose'' and inserting ``Purposes'';
(B) by striking paragraph (1) and inserting the
following:
``(1) Purposes.--The purposes of this section are--
``(A) to provide, in a timely manner, a fair and
accurate measurement of student achievement and grade
12 student preparedness in reading, mathematics,
science, and other subject matter as specified in this
section; and
``(B) to report trends in student achievement and
grade 12 student preparedness in reading, mathematics,
science, and other subject matter as specified in this
section.'';
(C) in paragraph (2)--
(i) in subparagraph (B), by striking
``reading and mathematics'' and inserting
``reading, mathematics, and science'';
(ii) by striking subparagraph (C) and
inserting the following:
``(C) conduct a national assessment and collect and
report assessment data, including achievement and
student preparedness data trends, in a valid and
reliable manner on student academic achievement and
student preparedness in public and private schools in
reading, mathematics, and science at least once every 2
years in grade 12;'';
(iii) in subparagraph (D)--
(I) by striking ``subparagraph (B)
are implemented and the requirements
described in subparagraph (C) are
met,'' and inserting ``subparagraphs
(B) and (C) are implemented,''; and
(II) by striking ``science,'';
(iv) in subparagraph (E)--
(I) by striking ``reading and
mathematics'' and inserting ``reading,
mathematics, and science''; and
(II) by striking ``subparagraph
(B)'' and inserting ``subparagraphs (B)
and (C)''; and
(v) in subparagraph (H), by striking
``achievement data'' and inserting ``student
achievement data and grade 12 student
preparedness data'';
(D) in paragraph (3)--
(i) in subparagraph (A)--
(I) in clause (i), by striking
``reading and mathematics'' and
inserting ``reading, mathematics, and
science'';
(II) in clause (ii)--
(aa) by inserting ``and
grade 12 student preparedness''
after ``achievement''; and
(bb) by striking ``reading
and mathematics'' and inserting
``reading, mathematics, and
science''; and
(III) in clause (iv), by striking
``an evaluation'' and inserting ``a
review''; and
(ii) in subparagraph (C)(ii), by striking
``reading and mathematics'' and inserting
``reading, mathematics, and science'';
(E) in paragraph (4)(B), by striking ``, require,
or influence'' and inserting ``or require''; and
(F) in paragraph (5)(B), by striking ``academic
achievement'' and inserting ``academic achievement or
grade 12 student preparedness'';
(2) in subsection (c)(3)(A), by striking ``academic
achievement'' and inserting ``academic achievement or grade 12
preparedness'';
(3) in subsection (d)(3)--
(A) in subparagraph (A), by striking ``reading and
mathematics in grades 4 and 8'' and inserting
``reading, mathematics, and science in grades 4 and
8''; and
(B) in subparagraph (B), by striking ``reading and
mathematics assessments in grades 4 and 8'' and
inserting ``reading, mathematics, and science
assessments in grades 4 and 8'';
(4) in subsection (e)--
(A) in the subsection heading, by inserting ``and
Grade 12 Student Preparedness Levels'' after
``Levels'';
(B) in paragraph (1)--
(i) by striking the paragraph heading and
inserting ``Development.--''; and
(ii) by inserting ``, and develop grade 12
student preparedness levels'' after
``subsection (b)(2)(F)'';
(C) in paragraph (2)--
(i) by striking subparagraph (A) and
inserting the following:
``(A) Student achievement and grade 12 preparedness
levels.--
``(i) Student achievement levels.--The
student achievement levels described in
paragraph (1) shall be determined by--
``(I) identifying the knowledge and
skills that--
``(aa) are prerequisite to
credit-bearing coursework in
higher education without the
need for remediation in
English, mathematics, or
science, participation in the
21st century workforce, and the
Armed Forces or, in the case of
grade 4 and grade 8 students,
are prerequisite to grade 12
preparedness;
``(bb) are competitive with
rigorous international content
and performance standards; and
``(cc) can be measured and
verified objectively using
widely accepted professional
assessment standards; and
``(II) developing student
achievement levels that are--
``(aa) based on the
knowledge and skills identified
in subclause (I);
``(bb) based on the
appropriate level of subject
matter knowledge for the grade
levels to be assessed, or the
age of the students, as the
case may be; and
``(cc) consistent with
relevant widely accepted
professional assessment
standards.
``(ii) Grade 12 student preparedness
levels.--The grade 12 student preparedness
levels described in paragraph (1) shall be
determined by--
``(I) identifying the knowledge and
skills that--
``(aa) are prerequisite to
credit-bearing coursework in
higher education without the
need for remediation in
English, mathematics, or
science, participation in the
21st century workforce, and the
Armed Forces;
``(bb) are competitive with
rigorous international content
and performance standards; and
``(cc) can be measured and
verified objectively using
widely accepted professional
assessment standards; and
``(II) developing grade 12 student
preparedness levels that are--
``(aa) based on the
knowledge and skills identified
in subclause (I); and
``(bb) consistent with
widely accepted professional
assessment standards.''; and
(ii) in subparagraph (C), by striking
``achievement levels'' and inserting ``student
achievement levels and grade 12 student
preparedness levels'';
(D) in paragraph (3)--
(i) by striking ``After determining that
such levels'' and inserting ``After determining
that the student achievement levels and grade
12 student preparedness levels''; and
(ii) by striking ``an evaluation'' and
inserting ``a review''; and
(E) in paragraph (4), by inserting ``or grade 12
student preparedness levels'' after ``achievement
levels''; and
(5) in subsection (f)(1)--
(A) in subparagraph (A), by inserting ``and grade
12 student preparedness levels'' after ``student
achievement levels''; and
(B) in subparagraph (B)--
(i) in clause (i), by inserting ``or grade
12 student preparedness'' after
``achievement'';
(ii) in clause (ii), by inserting ``and
grade 12 student preparedness levels'' after
``achievement levels'';
(iii) by striking clause (iii) and
inserting the following:
``(iii) whether any authorized assessment
is being administered as a random sample and is
reporting the trends in student achievement or
grade 12 student preparedness in a valid and
reliable manner in the subject areas being
assessed;'';
(iv) in clause (iv), by striking ``and''
after the semicolon;
(v) in clause (v), by striking ``and
mathematical knowledge.'' and inserting ``and
mathematical knowledge and scientific
knowledge; and''; and
(vi) by adding at the end the following:
``(vi) whether the appropriate authorized
assessments are measuring, consistent with this
section, the preparedness of students in grade
12 in the United States for entry into--
``(I) credit-bearing coursework in higher
education without the need for remediation in
English, mathematics, or science;
``(II) the 21st century workforce; and
``(III) the Armed Forces.''.
(c) National Benchmarks.--The National Assessment of Educational
Progress Authorization Act (20 U.S.C. 9621 et seq.) is amended--
(1) by redesignating sections 304 and 305 as sections 305
and 306, respectively; and
(2) by inserting after section 303 the following:
``SEC. 304. NATIONAL BENCHMARKS.
``(a) Purposes.--The purposes of this section are--
``(1) to encourage the coordination of, and consistency
between--
``(A) a State's academic content standards and
student academic achievement standards adopted under
section 1111(b)(1) of the Elementary and Secondary
Education Act of 1965, assessment specifications, and
assessment questions; and
``(B) national benchmarks, as reflected in the
National Assessment of Educational Progress;
``(2) to assist States in increasing the rigor of their
State academic content standards, student academic achievement
standards, assessment specifications, and assessment questions,
to ensure that such are competitive with rigorous national and
international benchmarks; and
``(3) to improve the instruction and academic achievement
of students, beginning in the early grades, to ensure that
secondary school graduates are well-prepared to enter--
``(A) credit-bearing coursework in higher education
without the need for remediation;
``(B) the 21st century workforce; or
``(C) the Armed Forces.
``(b) Alignment Analysis.--
``(1) In general.--When the chief State school officer of a
State identifies a need for, and requests the Assessment Board
to conduct, an alignment analysis for the State in reading,
mathematics, or science in grades 4 and 8, the Assessment Board
shall perform an alignment analysis of the State's academic
content standards and student academic achievement standards
adopted under section 1111(b)(1) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1)),
assessment specifications, and assessment questions, for the
identified subject in grades 4 and 8. Such analysis shall begin
not later than 180 days after the alignment analysis is
requested.
``(2) Assessment board responsibilities.--As part of the
alignment analysis, the Assessment Board shall--
``(A) identify the differences between the State's
academic content standards and student academic
achievement standards, assessment specifications, and
assessment questions for the subject identified by the
State, and national benchmarks reflected in the
National Assessment of Educational Progress in such
subject in grades 4 and 8;
``(B) at the State's request, recommend steps for,
and policy questions such State should consider
regarding, the alignment of the State's academic
content standards and student academic achievement
standards in the identified subject, with national
benchmarks reflected in the National Assessment of
Educational Progress in such subject in grades 4 and 8;
and
``(C) at the State's request, and in conjunction
with a State prekindergarten through grade 16 student
preparedness council established under section 2115 of
the New National Defense Education Act, assist in the
development of a plan described in section
2115(e)(1)(C) of such Act.
``(3) Contract.--At the discretion of the Assessment Board,
the Assessment Board may enter into a contract with an entity
that possesses the technical expertise to conduct the analysis
described in this subsection.
``(4) State panel.--The chief State school officer of a
State participating in an alignment analysis described in this
subsection shall appoint a panel of not less than 6 individuals
to partner with the Assessment Board in conducting the
alignment analysis. Such panel--
``(A) shall include--
``(i) local and State curriculum experts;
``(ii) relevant content and pedagogy
experts, including representatives of entities
with widely accepted national educational
standards and assessments; and
``(iii) not less than 1 entity that
possesses the technical expertise to assist the
State in implementing standards-based reform,
which may be the same entity with which the
Assessment Board contracts to conduct the
analysis under paragraph (3); and
``(B) may include other State and local
representatives and representatives of organizations
with relevant expertise.''.
(d) Definition of Secretary.--Section 305 of the National
Assessment of Educational Progress Authorization Act (as redesignated
by subsection (c)(1)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2) Secretary.--The term `Secretary' means the Secretary
of Education.''.
(e) Authorization of Appropriations.--Section 306(a) of the
National Assessment of Educational Progress Authorization Act (as
redesignated by subsection (c)(1)) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) for fiscal year 2007--
``(A) $7,500,000 to carry out section 302;
``(B) $200,000,000 to carry out section 303; and
``(C) $10,000,000 to carry out section 304; and'';
and
(2) in paragraph (2)--
(A) by striking ``5 succeeding'' and inserting ``4
succeeding''; and
(B) by striking ``and 303, as amended by section
401 of this Act'' and inserting ``, 303, and 304''.
(f) Conforming Changes and Amendments.--
(1) Conforming changes to the elementary and secondary
education act of 1965.--
(A) State plans.--Section 1111(c)(2) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311(c)(2)) is amended by striking ``and
mathematics'' and inserting ``, mathematics, and
science''.
(B) Local educational agency plans.--Section
1112(b)(1)(F) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6312(b)(1)(F)) is amended by
striking ``reading and mathematics'' and inserting
``reading, mathematics, and science''.
(2) Conforming amendment.--Section 113(a)(1) of the
Education Sciences Reform Act of 2002 (20 U.S.C. 9513(a)(1)) is
amended by striking ``section 302(e)(1)(J)'' and inserting
``section 302(e)(1)(L)''.
SEC. 2115. PREKINDERGARTEN THROUGH GRADE 16 STUDENT PREPAREDNESS
COUNCIL GRANTS.
(a) Program Authorized.--
(1) In general.--From amounts appropriated under subsection
(g) for a fiscal year, the Secretary is authorized to award, on
a competitive basis, grants to States for the purpose of
allowing the States to establish State prekindergarten through
grade 16 student preparedness councils (referred to in this
section as ``councils'') that--
(A) convene stakeholders within the State and
create a forum for identifying and deliberating on
educational issues that cut across prekindergarten
through grade 12 education and higher education, and
transcend any single system of education's ability to
address;
(B) develop and implement a plan for improving the
rigor of a State's academic content standards, student
academic achievement standards, assessment
specifications, and assessment questions as necessary,
to ensure such standards and assessments meet national
and international benchmarks as reflected in the
assessments required under section 303(b)(2) of the
National Assessment of Educational Progress
Authorization Act (20 U.S.C. 9622(b)(2)) or as defined
by the council as necessary for success in credit-
bearing coursework in higher education without the need
for remediation, the 21st century workforce, or the
Armed Forces;
(C) inform the design and implementation of
integrated prekindergarten through grade 16 data
systems, which--
(i) will allow the State to track the
progress of individual students from
prekindergarten through grade 12 and into
higher education; and
(ii) shall be capable of being linked with
appropriate databases on service in the Armed
Forces and participation in the 21st century
workforce; and
(D) shall develop challenging--
(i) school readiness standards;
(ii) curricula for elementary schools and
middle schools; and
(iii) 21st century curricula for secondary
schools.
(2) Duration.--The Secretary shall award grants under this
section for a period of not more than 5 years.
(3) Existing state council.--A State with an existing State
council may qualify for the purposes of a grant under this
section if--
(A) such council--
(i) has the authority to carry out this
section; and
(ii) includes the members required under
subsection (b); or
(B) the State amends the membership or
responsibilities of the existing council to meet the
requirements of subparagraph (A).
(b) Composition.--
(1) Required members.--The members of a council described
in subsection (a) shall include--
(A) the Governor of the State or the designee of
the Governor;
(B) the chief executive officer of the State public
institution of higher education system, if such a
position exists;
(C) the chief executive officer of the State Higher
Education Coordinating Board;
(D) the chief State school officer;
(E) not less than 1 representative each from--
(i) the business community; and
(ii) the Armed Forces;
(F) a public elementary school teacher employed in
the State; and
(G) a public secondary school teacher employed in
the State.
(2) Optional members.--The council described in subsection
(a) may also include--
(A) a representative from--
(i) a private institution of higher
education;
(ii) the Chamber of Commerce for the State;
(iii) a civic organization;
(iv) a civil rights organization;
(v) a community organization; or
(vi) an organization with expertise in
world cultures;
(B) the State official responsible for economic
development, if such a position exists; or
(C) a dean or similar representative for a school
of education at an institution of higher education or a
similar teacher certification or licensure program.
(c) Timeline.--A State receiving a grant under this section shall
establish a council (or use or amend an existing council in accordance
with subsection (a)(3)) not later than 60 days after the receipt of the
grant.
(d) Application.--
(1) In general.--Each State desiring a grant under this
section shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information as
the Secretary may reasonably require.
(2) Contents.--Each application submitted under paragraph
(1) shall--
(A) demonstrate that the opinions of the larger
education, business, and military community, including
parents, students, teachers, teacher educators,
principals, school administrators, and business
leaders, will be represented during the determination
of the State academic content standards and student
academic achievement standards, assessment
specifications, assessment questions, and the
development of curricula, if applicable;
(B) include a comprehensive plan to provide high-
quality professional development for teachers,
paraprofessionals, principals, and school
administrators;
(C) explain how the State will provide assistance
to local educational agencies in implementing rigorous
State standards through substantive curricula,
including scientifically based remediation and
acceleration opportunities for students; and
(D) explain how the State and the council will
leverage additional State, local, and other funds to
pursue curricular alignment and student success.
(e) Use of Funds.--
(1) Required activities.--A State receiving a grant under
this section shall use the grant funds to establish a council
that shall carry out the following:
(A) Design and implement an integrated
prekindergarten through grade 16 longitudinal data
system for the State, if such system does not exist,
that will allow the State to track the progress of
students from prekindergarten, through grade 12, and
into higher education, the 21st century workforce, and
the Armed Forces. The data system shall--
(i) include--
(I) a unique statewide student
identifier for each student;
(II) student-level enrollment,
demographic, and program participation
information, including race or
ethnicity, gender, and income status;
(III) the ability to match
individual students' test records from
year to year to measure academic
growth;
(IV) information on untested
students;
(V) a teacher identifier system
with the ability to match teachers to
students;
(VI) student-level transcript
information, including information on
courses completed and grades earned;
(VII) student-level college
preparedness examination scores;
(VIII) student-level graduation and
dropout data;
(IX) the ability to match student
records between the prekindergarten
through grade 12 and the postsecondary
systems;
(X) a State data audit system
assessing data quality, validity, and
reliability;
(XI) rates of student attendance at
institutions of higher education;
(XII) rates of student enrollment
and retention in the Armed Forces; and
(XIII) student nonmilitary
postsecondary employment information;
(ii) to the extent possible, coordinate
with other relevant State databases, such as
criminal justice or social services data
systems;
(iii) allow the State to analyze
correlations between course-taking patterns in
prekindergarten through grade 12 and outcomes
after secondary school graduation, including--
(I) entry into higher education;
(II) the need for, and cost of,
remediation in higher education;
(III) graduation from higher
education;
(IV) entry into the 21st century
workforce;
(V) entry into the Armed Forces;
and
(VI) to the extent possible through
linkages with appropriate databases on
service in the Armed Forces and
participation in the 21st century
workforce, persistence in the Armed
Forces and continued participation in
the 21st century workforce; and
(iv) ensure that the use of any available
data does not allow for the public
identification of the individual student's
personally identifiable information, and that
all data shall be collected and maintained in
accordance with section 444 of the General
Education Provisions Act (20 U.S.C. 1232g;
commonly referred to as the Family Educational
Rights and Privacy Act of 1974).
(B) If an integrated prekindergarten through grade
16 longitudinal data system exists or is currently
being built, ensure that it complies with the
requirements described in subparagraph (A).
(C) Develop and implement a plan to increase the
rigor of standards or assessments in reading,
mathematics, or science in order to better align such
standards or assessments with national benchmarks
reflected in the National Assessment of Educational
Progress in grades 4 and 8 (in accordance with the
results of the alignment analysis conducted under
section 304 of the National Assessment of Educational
Progress Authorization Act), and in other grades to
ensure the alignment of kindergarten through grade 12
standards or assessments with the revisions made in
grades 4 and 8, or to align such standards or
assessments with the demands of higher education, the
21st century workforce, or the Armed Forces or other
national and international benchmarks identified by the
council. Such plan may include--
(i) an articulation of the steps
necessary--
(I) for revising the State academic
content standards and student academic
achievement standards, assessment
specifications, and assessment
questions for the identified subject;
and
(II) to better align the standards
and the assessment specifications and
questions described in subclause (I)
with--
(aa) national benchmarks as
reflected in the National
Assessment of Educational
Progress required under section
303 of the National Assessment
of Educational Progress
Authorization Act (20 U.S.C.
9622) for the identified
subject; or
(bb) the demands of higher
education, the 21st century
workforce, or the Armed Forces
or other national or
international benchmarks
identified by the council;
(ii) an articulation of the steps necessary
and the process the State will undertake to
revise standards or assessments, or both, in
the identified subject;
(iii) a description of the partners the
State will work with to revise standards or
assessments, or both; and
(iv) a description of the activities the
State will undertake to implement the revised
standards or assessments, or both, at the State
educational agency level and the local
educational agency level, which activities may
include--
(I) preservice and in-service
teacher, paraprofessional, principal,
and school administrator training;
(II) statewide meetings to provide
professional development opportunities
for teachers and administrators;
(III) development of curricula and
instructional methods and materials;
(IV) the redesign of existing
assessments, or the development or
purchase of new high-quality
assessments, with a focus on ensuring
that such assessments are rigorous,
measure significant depth of knowledge,
use multiple measures and formats (such
as student portfolios), and are
sensitive to inquiry-based, project-
based, or differentiated instruction;
and
(V) other activities necessary for
the effective implementation of the new
State standards or assessments, or
both.
(D) Analyze the State's level of prekindergarten
through grade 16 curricular alignment and the success
of the State's education system in preparing students
for higher education, the 21st century workforce, and
the Armed Forces by--
(i) using the data produced by a data
system described in subparagraph (A) or (B), or
other information as appropriate; and
(ii) exploring a possible agreement between
the State educational agency and the higher
education system in the State on a common
assessment or assessments that--
(I) shall follow established
guidelines to guarantee reliability and
validity;
(II) shall provide adequate
accommodations for students who are
limited English proficient and students
with disabilities; and
(III) may be a placement
examination, end of course examination,
college, workforce, or Armed Forces
preparedness examination, or admissions
examination, that measures secondary
students' preparedness to succeed in
postsecondary, credit-bearing courses.
(E) If the State has an officially designated
college preparatory curriculum at the time the State
applies for a grant under this section--
(i) describe the extent to which students
who completed the college preparatory
curriculum are more or less successful than
other students, including students who did not
complete a college preparatory curriculum, in
entering and graduating from a program of study
at an institution of higher education or
entering the 21st century workforce or the
Armed Forces;
(ii) examine the extent to which the
expectations of the college preparatory
curriculum are aligned with the entry standards
of the State's institutions of higher
education, including whether such curriculum
enables secondary school students to enter
credit-bearing coursework in higher education
without the need for remediation; and
(iii) examine the extent to which the
curriculum allows graduates to attain the
skills necessary to enter the 21st century
workforce or the Armed Forces.
(F) If the State has not designated a college
preparatory curriculum at the time the State applied
for a grant under this section, or if the curriculum
described in subparagraph (E) does not result in a
higher number of students enrolling in and graduating
from institutions of higher education or entering the
21st century workforce or the Armed Forces, or is not
aligned with the entry standards described in
subparagraph (E)(ii), develop a 21st century curriculum
that--
(i) may be adopted by the local educational
agencies in the State for use in secondary
schools;
(ii) enables secondary school students to
enter credit-bearing coursework in higher
education without the need for remediation;
(iii) allows graduates to attain the skills
necessary to enter the 21st century workforce
or the Armed Forces;
(iv) reflects the input of teachers,
principals, school administrators, and college
faculty; and
(v) focuses on providing rigorous core
courses that reflect the State academic content
standards and student academic achievement
standards.
(G) Develop and make available specific
opportunities for extensive professional development
for teachers, paraprofessionals, principals, and school
administrators, to improve instruction and support
mechanisms for students using a curriculum described in
subparagraph (E) or (F).
(H) Develop a plan to provide remediation and
additional learning opportunities for students below
grade level to ensure that all students will have the
opportunity to meet the curricular standards of a
curriculum described in subparagraph (E) or (F).
(I) Use data gathered by the council to improve
instructional methods, better tailor student support
services, and serve as the basis for all school reform
initiatives.
(J) Implement activities designed to ensure the
enrollment of all students in rigorous coursework,
which may include--
(i) specifying the courses and performance
levels required for acceptance into public
institutions of higher education;
(ii) collaborating with institutions of
higher education or other State educational
agencies to develop assessments aligned to
State academic content standards and a
curriculum described in subparagraph (E) or
(F), which assessments may be used as measures
of student achievement in secondary school as
well as for entrance or placement at
institutions of higher education;
(iii) creating ties between elementary
schools and secondary schools, and institutions
of higher education, to offer--
(I) accelerated learning
opportunities, particularly with
respect to mathematics, science,
engineering, technology, and critical-
need foreign languages (as determined
by the Secretary under section 2222) to
secondary school students, which may
include--
(aa) granting postsecondary
credit for secondary school
courses;
(bb) providing early
enrollment opportunities in
postsecondary education for
secondary students enrolled in
postsecondary-level coursework;
(cc) creating dual
enrollment programs;
(dd) creating satellite
secondary school campuses on
the campuses of institutions of
higher education; and
(ee) providing
opportunities for higher
education faculty who are
highly qualified, as such term
is defined in section 9101 of
the Elementary and Secondary
Education Act of 1965 (20
U.S.C. 7801), to teach credit-
bearing postsecondary courses
in secondary schools; and
(II) professional development
activities for teachers, which may
include--
(aa) mentoring
opportunities; and
(bb) summer institutes;
(iv) expanding or creating higher education
awareness programs for middle school and
secondary school students;
(v) expanding opportunities for students to
enroll in highly rigorous postsecondary
preparatory courses, such as Advanced Placement
and International Baccalaureate courses; and
(vi) developing a high-quality professional
development curriculum to provide professional
development opportunities for
paraprofessionals, teachers, principals, and
administrators.
(2) Planning and implementation.--A State receiving a grant
under this section may use grant funds received for the first
fiscal year to form the council and plan the activities
described in paragraph (1). Grant funds received for subsequent
fiscal years shall be used for the implementation of the
activities described in such paragraph.
(f) Reports and Publication.--
(1) Reports.--
(A) Initial report.--Not later than 9 months after
a State receives a grant under this section, the State
shall submit a report to the Secretary that includes--
(i) an analysis of alignment and
articulation across the State's systems of
public education for prekindergarten through
grade 16, including data that indicates the
percent of students who--
(I) graduate from secondary school
with a regular diploma in the standard
number of years;
(II) complete a curriculum
described in subparagraph (E) or (F) of
subsection (e)(1);
(III) matriculate into an
institution of higher education
(disaggregated by 2-year and 4-year
degree-granting programs);
(IV) are secondary school graduates
who need remediation in reading,
writing, mathematics, or science before
pursuing credit-bearing post-secondary
courses in English, mathematics, or
science;
(V) persist in an institution of
higher education into the second year;
and
(VI) graduate from an institution
of higher education within 150 percent
of the expected time for degree
completion (within 3 years for a 2-year
degree program and within 6 years for a
baccalaureate degree);
(ii) an analysis of the strengths and
weaknesses of the State--
(I) in transitioning students from
the prekindergarten through grade 12
education system into higher education,
the 21st century workforce, and the
Armed Forces; and
(II) in transitioning students from
the prekindergarten through grade 12
education system into mathematics,
science, engineering, technology, and
critical-need foreign language degree
programs at institutions of higher
education;
(iii) an analysis of the quality and rigor
of the State's curriculum described in
subparagraph (E) or (F) of subsection (e)(1),
and the accessibility of the curriculum to all
students in prekindergarten through grade 12;
(iv) an analysis of the strengths and
weaknesses of the State in recruiting,
retaining, and supporting qualified teachers,
including--
(I) whether the State needs to
recruit additional teachers at the
secondary level for specific subjects
(such as mathematics, science,
engineering and technology education,
(as such term is defined in section
9101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7801),
and critical-need foreign languages (as
determined by the Secretary under
section 2222)), particular schools, or
local educational agencies; and
(II) recommendations on how to set
and achieve goals in this pursuit; and
(v) a detailed action plan that describes
how the council will accomplish the goals and
tasks required by the grant under this section,
including a timeline for accomplishing all
activities under the grant.
(B) Annual reports.--Not later than 1 year
following the submission of the initial report
described in subparagraph (A), and annually thereafter
for the duration of the grant, a State receiving a
grant under this section shall prepare and submit to
the Secretary a report that describes the State's
progress in accomplishing the goals and tasks required
by the grant, including progress on each item described
in subparagraph (A). The final annual report under this
subparagraph shall be submitted 1 year after the
expiration of the grant.
(2) Publication.--A State submitting a report in accordance
with this subsection shall publish and widely disseminate the
report to the public, including posting the report on the
Internet.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $200,000,000 for fiscal year
2007, and such sums as may be necessary for each of the 4 succeeding
fiscal years.
SEC. 2116. COLLABORATIVE STANDARDS AND ASSESSMENTS GRANTS.
(a) Definitions.--In this section:
(1) Eligible state.--The term ``eligible State'' means a
State that demonstrates that it has analyzed and, where
applicable, revised the State standards and assessments,
through participation in a prekindergarten through grade 16
student preparedness council described in section 2115 or
through other State action, to ensure the standards and
assessments--
(A) are aligned with the demands of the 21st
century; and
(B) prepare students for entry into--
(i) credit-bearing coursework in higher
education without the need for remediation;
(ii) the 21st century workforce; and
(iii) the Armed Forces
(2) Eligible consortium.--
(A) In general.--The term ``eligible consortium''
means a consortium of 2 or more eligible States that
agrees to allow the Secretary, under subsection (e), to
make available any assessment developed by the
consortium under this section to a State that so
requests, including a State that is not a member of the
consortium.
(B) Additional members.--An eligible consortium may
include, in addition to 2 or more eligible States, an
entity with the technical expertise to carry out a
grant under this section.
(b) Program Authorized.--From amounts authorized under subsection
(f), the Secretary shall award grants, on a competitive basis, to
eligible consortia to enable the eligible consortia to develop common
standards and assessments that--
(1) are highly rigorous, internationally competitive, and
aligned with the demands of higher education, the 21st century
workforce, and the Armed Forces; and
(2) in the case of assessments, set rigorous performance
standards comparable to rigorous national and international
benchmarks.
(c) Application.--An eligible consortium desiring a grant under
this section shall submit an application to the Secretary at such time,
in such manner, and containing such information as the Secretary may
require.
(d) Report.--Not later than 90 days after the end of the grant
period, an eligible consortium receiving a grant under this section
shall prepare and submit a report to the Secretary describing the grant
activities.
(e) Availability of Assessments.--The Secretary shall--
(1) make available, to a State that so requests and at no
charge to the State, any rigorous, high-quality assessment
developed by an eligible consortium under this section; and
(2) notify potential eligible States, at reasonable
intervals, of all assessments currently under development by
eligible consortia under this section.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $75,000,000 for fiscal year 2007
and such sums as are necessary for each of the 4 succeeding fiscal
years.
CHAPTER 2--INVESTING IN TEACHERS
SEC. 2121. PURPOSE.
The purpose of this chapter is to increase the number and quality
of teachers of mathematics, science, engineering and technology
education, and critical-need foreign languages, in order to prepare
students for entry into credit-bearing courses in higher education
without the need for remediation, the 21st century workforce, and the
Armed Forces.
SEC. 2122. DEFINITION OF ENGINEERING AND TECHNOLOGY EDUCATION.
(a) Elementary and Secondary Education Act of 1965.--Section 9101
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)
is amended--
(1) by redesignating paragraphs (19) through (43) as
paragraphs (20) through (44), respectively; and
(2) by inserting after paragraph (18) the following:
``(19) Engineering and technology education.--The term
`engineering and technology education' means a curriculum and
instruction that--
``(A) uses technology as a knowledge base or as a
way of teaching innovation using an engineering design
process and context;
``(B) develops an appreciation and fundamental
understanding of technology through design skills and
the use of materials, tools, processes, and limited
resources;
``(C) is taught in conjunction with applied
mathematics, science, language arts, fine arts, and
social studies as a part of a comprehensive education;
``(D) applies the use of tools and skills employed
by a globalized skilled 21st century workforce that are
necessary for communication, manufacturing,
construction, energy systems, biomedical systems,
transportation systems, and other related fields; and
``(E) through the application of engineering
principles and concepts, develops proficiency in
abstract ideas and in problem-solving techniques that
build a comprehensive education.''.
(b) Higher Education Act of 1965.--Section 103 of the Higher
Education Act of 1965 (20 U.S.C. 1003) is amended--
(1) by redesignating paragraphs (5) through (16) as
paragraphs (6) through (17), respectively; and
(2) by inserting after paragraph (4) the following:
``(5) Engineering and technology education.--The term
`engineering and technology education' has the meaning given
the term in section 9101 of the Elementary and Secondary
Education Act of 1965.''.
SEC. 2123. EXPANDING TEACHER LOAN FORGIVENESS.
(a) Increased Amount; Applicability of Expanded Program to Reading
Specialist.--Sections 428J(c)(3) and 460(c)(3) of the Higher Education
Act of 1965 (20 U.S.C. 1078-10(c)(3), 1087j(c)(3)) are each amended--
(1) by striking the paragraph heading and inserting
``Additional amounts for teachers in mathematics, science,
engineering and technology education, a critical-need foreign
language, or special education'';
(2) in the matter preceding subparagraph (A), by striking
``$17,500'' and inserting ``$23,000''; and
(3) in subparagraph (A)(ii), by striking ``or science'' and
all that follows through ``; and'' and inserting ``, science,
engineering and technology education, or a critical-need
foreign language (as determined by the Secretary under section
2222 of the New National Defense Education Act), on a full-time
basis; and''.
(b) Annual Increments Instead of End of Service Lump Sums.--
(1) FFEL loans.--Section 428J(c) of the Higher Education
Act of 1965 (20 U.S.C. 1078-10(c)) is amended by adding at the
end the following:
``(4) Annual increments.--Notwithstanding paragraph (1), in
the case of an individual qualifying for loan forgiveness under
paragraph (3), the Secretary shall, in lieu of waiting to
assume an obligation only upon completion of 5 complete years
of service, assume the obligation to repay--
``(A) after each of the first and second years of
service by an individual in a position qualifying under
paragraph (3), 15 percent of the total amount of
principal and interest of the loans described in
paragraph (1) to such individual that are outstanding
immediately preceding such first year of such service;
``(B) after each of the third and fourth years of
such service, 20 percent of such total amount; and
``(C) after the fifth year of such service, 30
percent of such total amount.''.
(2) Direct loans.--Section 460(c) of the Higher Education
Act of 1965 (20 U.S.C. 1087j(c)) is amended by adding at the
end the following:
``(4) Annual increments.--Notwithstanding paragraph (1), in
the case of an individual qualifying for loan cancellation
under paragraph (3), the Secretary shall, in lieu of waiting to
assume an obligation only upon completion of 5 complete years
of service, assume the obligation to repay--
``(A) after each of the first and second years of
service by an individual in a position qualifying under
paragraph (3), 15 percent of the total amount of
principal and interest of the loans described in
paragraph (1) to such individual that are outstanding
immediately preceding such first year of such service;
``(B) after each of the third and fourth years of
such service, 20 percent of such total amount; and
``(C) after the fifth year of such service, 30
percent of such total amount.''.
SEC. 2124. EXCLUSION FROM GROSS INCOME OF COMPENSATION OF TEACHERS AND
PRINCIPALS IN CERTAIN HIGH-NEED SCHOOLS AND TEACHING
HIGH-NEED SUBJECTS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139A the following new section:
``SEC. 139B. COMPENSATION OF CERTAIN TEACHERS AND PRINCIPALS.
``(a) Principals in High-Need Schools.--In the case of an
individual employed as a principal in a high-need school during the
taxable year, gross income does not include so much remuneration for
such employment (which would but for this paragraph be includible in
gross income) as does not exceed $15,000.
``(b) Teachers in High-Need Schools and of High-Need Subjects.--
``(1) In general.--In the case of an individual employed as
a teacher of high-need subjects and in a high-need school
during the taxable year, gross income does not include so much
remuneration for such employment (which would but for this
paragraph be includible in gross income) as does not exceed
$15,000.
``(2) Teacher of high-need subjects.--For purposes of this
subsection, the term `teacher of high-need subjects' means any
teacher in a public elementary or secondary school who--
``(A)(i) teaches primarily 1 or more high-need
subjects in 1 or more of grades 9 through 12, or
``(ii) teaches 1 or more high-need subjects in 1 or
more of grades kindergarten through 8,
``(B) received a baccalaureate or similar degree
from an eligible educational institution (as defined in
section 25A(f)(2)) with a major in a high-need subject,
and
``(C) is highly qualified (as defined in section
9101 of the Elementary and Secondary Education Act of
1965 or, in the case of a special education teacher, in
section 602 of the Individuals with Disabilities
Education Act).
``(3) High-need subjects.--For purposes of this subsection,
the term `high-need subject' means mathematics, science,
engineering and technology education, a critical-need foreign
language (as determined by the Secretary of Education under
section 2222 of the New National Defense Education Act),
special education, teaching English language learners, or any
other subject identified as a high-need subject by the
Secretary of Education for purposes of this section.
``(c) Limitation on Total Remuneration Taken Into Account.--In the
case of any individual whose employment is described in subsections (a)
and (b)(1), the total amount of remuneration which may be taken into
account with respect to such employment under this section for the
taxable year shall not exceed $25,000.
``(d) High-Need School.--For purposes of this section, the term
`high-need school' means a public elementary school or secondary school
that is eligible for assistance under section 1114(a) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6314(a)).''.
(b) Clerical Amendment.--The table of sections of such part is
amended by inserting after the item relating to section 139A the
following new item:
``Sec. 139B. Compensation of certain teachers and
principals.''.
(c) Effective Date.--The amendments made by this section shall
apply to remuneration received in taxable years beginning after the
date of the enactment of this Act.
SEC. 2125. MATHEMATICS AND SCIENCE EDUCATION PARTNERSHIPS AND TEACHER
INSTITUTES FOR THE 21ST CENTURY THROUGH THE NATIONAL
SCIENCE FOUNDATION.
(a) Authorization of Appropriations.--
(1) Sense of the senate.--It is the sense of the Senate
that--
(A) the activities of the mathematics and science
education partnerships of the National Science
Foundation, described in section 9 of the National
Science Foundation Authorization Act of 2002, meet a
distinct need separate from other Federal investments
in improving science, technology, engineering, and
mathematics education;
(B) funding for the mathematics and science
education partnerships for fiscal year 2007 should be
increased to the $400,000,000 level authorized for
fiscal year 2005 under section 5 of such Act, and
increased by 10 percent annually for each of the fiscal
years 2008 through 2011; and
(C) the increase in funding for the mathematics and
science education partnerships should be in addition to
any other amounts authorized or appropriated for the
National Science Foundation.
(2) Authorization of appropriations for nsf mathematics and
science education partnerships.--There is authorized to be
appropriated to the National Science Foundation for education
and human resources to carry out the mathematics and science
education partnerships described in section 9 of the National
Science Foundation Authorization Act of 2002, in addition to
the amounts authorized under section 2214(b), amounts as
follows:
(A) For fiscal year 2007, $400,000,000, of which
$50,000,000 shall be for the teacher institutes for the
21st century under section 9(a)(3)(B) of the National
Science Foundation Authorization Act of 2002.
(B) For fiscal year 2008, $440,000,000, of which
$60,000,000 shall be for the teacher institutes for the
21st century under such section.
(C) For fiscal year 2009, $484,000,000, of which
$70,000,000 shall be for the teacher institutes for the
21st century under such section.
(D) For fiscal year 2010, $532,400,000, of which
80,000,000 shall be for the teacher institutes for the
21st century under such section.
(E) For fiscal year 2011, $585,640,000, of which
$90,000,000 shall be for the teacher institutes for the
21st century under such section.
(b) Teacher Institutes for the 21st Century.--Section 9(a) of the
National Science Foundation Authorization Act of 2002 (42 U.S.C.
1862n(a)) is amended--
(1) in paragraph (3)(B), by striking ``summer or'' and
inserting ``teacher institutes for the 21st century, as
described in paragraph (7)'';
(2) by redesignating paragraph (7) as paragraph (8); and
(3) by inserting after paragraph (6) the following:
``(7) Teacher institutes for the 21st century.--
``(A) In general.--Teacher institutes for the 21st
century carried out in accordance with paragraph (3)(B)
shall--
``(i) be carried out in conjunction with a
school served by the local educational agency
in the partnership;
``(ii) be science, mathematics,
engineering, and technology focused institutes
that provide professional development to
elementary school and secondary school teachers
during the summer;
``(iii) serve teachers who are considered
highly qualified (as defined in section 9101 of
the Elementary and Secondary Education Act of
1965), teach high-need subjects, and teach in
high-need schools (as defined in section
1114(a) of the Elementary and Secondary
Education Act of 1965);
``(iv) focus on the theme and structure
developed by the Director under subparagraph
(C);
``(v) be content-based and build on school
year curricula that are object-centered,
experiment-oriented, content-based, and
grounded in current research;
``(vi) ensure that any pedagogy component
is designed around specific strategies that are
relevant to teaching the subject and content on
which teachers are being trained, which may
include training teachers in the essential
components of adolescent literacy instruction
in order to improve student reading skills
within the subject areas of mathematics,
science, and engineering and technology
education (as defined in section 9101 of the
Elementary and Secondary Education Act of
1965);
``(vii) be a multiyear program that is
conducted for a period of not less than 2 weeks
per year;
``(viii) provide for direct interaction
between students and faculty of the teacher
institute;
``(ix) have a component that includes the
use of the Internet;
``(x) provide for followup training in the
classroom during the academic year for a period
of not less than 3 days, which may or may not
be consecutive, for participants in the teacher
institute, except that for teachers in rural
local educational agencies, the followup
training may be provided through the Internet;
``(xi) provide teachers participating in
the teacher institute with travel expense
reimbursement, stipends, and classroom
materials related to the teacher institute; and
``(xii) establish a mechanism to provide
supplemental support during the academic year
for teacher institute participants.
``(B) Optional members of the partnership.--In
addition to the partnership requirement under paragraph
(2), an institution of higher education or eligible
nonprofit organization (or consortia) desiring a grant
for a teacher institute for the 21st century may also
partner with a museum or educational partnership
organization.
``(C) Theme and structure.--Each year, not later
than 180 days before the application deadline for a
grant under this section, the Director shall, in
consultation with a broad group of professional
education organizations, develop a theme and structure
for the teacher institutes of the 21st century
supported under paragraph (3)(B).''.
SEC. 2126. TEACH GRANTS; RECRUITING TEACHERS WITH MATHEMATICS, SCIENCE,
ENGINEERING, TECHNOLOGY, OR LANGUAGE MAJORS.
(a) TEACH Grants.--Title II of the Higher Education Act of 1965 (20
U.S.C. 1021 et seq.) is amended by adding at the end the following:
``PART C--TEACH GRANTS
``SEC. 231. PURPOSES.
``The purposes of this part are--
``(1) to improve student academic achievement;
``(2) to help recruit and prepare teachers to meet the
national demand for a highly qualified teacher in every
classroom; and
``(3) to increase opportunities for Americans of all
educational, ethnic, class, and geographic backgrounds to
become highly qualified teachers.
``SEC. 232. PROGRAM ESTABLISHED.
``(a) Program Authority.--
``(1) Payments required.--For each of the fiscal years 2007
through 2014, the Secretary shall pay to each eligible
institution of higher education such sums as may be necessary
to pay to each eligible student (defined in accordance with
section 484) who files an application and agreement in
accordance with section 233, and qualifies under subsection
(a)(2) of such section, a TEACH Grant in the amount of $7,000
for each academic year during which that student is in
attendance at an institution of higher education.
``(2) Reference.--Grants made under this part shall be
known as `Teacher Education Assistance for College and Higher
Education Grants' or `TEACH Grants'.
``(b) Payment Methodology.--
``(1) Prepayment.--Not less than 85 percent of such sums
shall be advanced to eligible institutions prior to the start
of each payment period and shall be based upon an amount
requested by the institution as needed to pay eligible students
until such time as the Secretary determines and publishes in
the Federal Register with an opportunity for comment, an
alternative payment system that provides payments to
institutions in an accurate and timely manner, except that this
sentence shall not be construed to limit the authority of the
Secretary to place an institution on a reimbursement system of
payment.
``(2) Direct payment.--Nothing in this section shall be
interpreted to prohibit the Secretary from paying directly to
students, in advance of the beginning of the academic term, an
amount for which they are eligible, in cases where the eligible
institution elects not to participate in the disbursement
system required by paragraph (1).
``(3) Distribution of grants to students.--Payments under
this part shall be made, in accordance with regulations
promulgated by the Secretary for such purpose, in such manner
as will best accomplish the purposes of this part. Any
disbursement allowed to be made by crediting the student's
account shall be limited to tuition and fees and, in the case
of institutionally owned housing, room and board. The student
may elect to have the institution provide other such goods and
services by crediting the student's account.
``(c) Reductions in Amount.--
``(1) Part-time students.--In any case where a student
attends an institution of higher education on less than a full-
time basis (including a student who attends an institution of
higher education on less than a half-time basis) during any
academic year, the amount of the TEACH Grant for which that
student is eligible shall be reduced in proportion to the
degree to which that student is not so attending on a full-time
basis, in accordance with a schedule of reductions established
by the Secretary for the purpose of this part, computed in
accordance with this part. Such schedule of reductions shall be
established by regulation and published in the Federal Register
in accordance with section 482 of this Act.
``(2) No exceeding cost of attendance.--No TEACH Grant for
a student under this part shall exceed the cost of attendance
(as defined in section 472) at the institution that such
student attends. If, with respect to any student, it is
determined that the amount of a TEACH Grant exceeds the cost of
attendance for that year, the amount of the TEACH Grant shall
be reduced until the TEACH Grant does not exceed the cost of
attendance at such institution.
``(d) Period of Eligibility for Grants.--
``(1) Undergraduate students.--The period during which an
undergraduate student may receive TEACH Grants shall be the
period required for the completion of the first undergraduate
baccalaureate course of study being pursued by the student at
the institution that the student attends, except that--
``(A) any period during which the student is
enrolled in a noncredit or remedial course of study,
subject to paragraph (3), shall not be counted for the
purpose of this paragraph; and
``(B) the total amount that a student may receive
under this part for undergraduate study shall not
exceed $28,000.
``(2) Graduate students.--The period during which a
graduate student pursuing a master's degree or doctoral degree
may receive TEACH Grants shall be the period required for the
completion of a course of study for the degree at the
institution the student attends, except that the total amount
that a student may receive under this part for graduate study
shall not exceed $14,000 for a student pursuing a master's
degree or $28,000 for a student pursuing a doctoral degree.
``(3) Remedial course; study abroad.--Nothing in this
section shall exclude from eligibility a course of study that
is noncredit or remedial in nature (including a course in
English language acquisition) if such course is determined by
the institution to be necessary to help the student be prepared
for the pursuit of a first undergraduate baccalaureate degree
or certificate or, in the case of courses in English language
instruction, to be necessary to enable the student to utilize
existing knowledge, training, or skills. Nothing in this
section shall exclude from eligibility a program of study
abroad that is approved for credit by the home institution at
which the student is enrolled.
``SEC. 233. ELIGIBILITY AND APPLICATIONS FOR GRANTS.
``(a) Applications; Demonstration of Eligibility.--
``(1) Filing required.--The Secretary shall from time to
time set dates by which students shall file applications for
TEACH Grants under this part. Each student desiring a TEACH
Grant for any year shall file an application therefore
containing such information and assurances as the Secretary may
deem necessary to enable the Secretary to carry out the
functions and responsibilities of this part.
``(2) Demonstration of eligibility.--Each such application
shall contain such information as is necessary to demonstrate
that--
``(A) if the applicant is an enrolled student--
``(i) the student is an eligible student
for purposes of section 484 (other than
subsection (r) of such section);
``(ii) the student--
``(I) has a grade point average
that is determined, under standards
prescribed by the Secretary, to be
comparable to a 3.25 average on a zero
to 4.0 scale, except that, if the
student is in the first year of a
program of undergraduate education,
such grade point average shall be
determined on the basis of the
student's cumulative secondary school
grade point average; or
``(II) displayed high academic
aptitude by receiving a score above the
75th percentile on at least 1 of the
batteries in an undergraduate or
graduate school admissions test; and
``(iii) the student is completing
coursework and other requirements necessary to
begin a career in teaching, or plans to
complete such coursework and requirements prior
to graduating; or
``(B) if the applicant is a current or prospective
teacher applying for a grant to obtain a graduate
degree--
``(i) the applicant is a teacher or a
retiree from another occupation with expertise
in a field in which there is a shortage of
teachers, such as mathematics, science,
engineering and technology education, a
critical-need foreign language (as determined
by the Secretary under section 2222 of the New
National Defense Education Act), special
education, English language acquisition, or
another high-need subject; or
``(ii) the applicant is or was a teacher
who is using high-quality alternative
certification routes, such as Teach for
America, to get certified.
``(b) Agreements to Serve.--Each application under subsection (a)
shall contain or be accompanied by an agreement by the applicant that--
``(1) the applicant will--
``(A) serve as a full-time teacher for a total of
not less than 4 academic years within 8 years after
completing the course of study for which the applicant
receives a TEACH Grant under this part;
``(B) teach--
``(i) in a school eligible for assistance
under section 1114(a) of the Elementary and
Secondary Education Act of 1965; and
``(ii) in any of the following fields:
mathematics, science, engineering and
technology education, a critical-need foreign
language (as determined by the Secretary under
section 2222 of the New National Defense
Education Act), bilingual education, or special
education, or as a reading specialist, or
another field documented as high-need by the
Federal Government, State government, or local
educational agency and submitted to the
Secretary;
``(C) submit evidence of such employment in the
form of a certification by the chief administrative
officer of the school upon completion of each year of
such service; and
``(D) comply with the requirements for being a
highly qualified teacher as defined in section 9101 of
the Elementary and Secondary Education Act of 1965 or,
in the case of a special education teacher, in section
602 of the Individuals With Disabilities Education Act;
and
``(2) in the event that the applicant is determined to have
failed or refused to carry out such service obligation, the sum
of the amounts of such TEACH Grants will be treated as a loan
and collected from the applicant in accordance with subsection
(c) and the regulations thereunder.
``(c) Repayment for Failure To Complete Service.--In the event that
any recipient of a TEACH Grant fails or refuses to comply with the
service obligation in the agreement under subsection (b), the sum of
the amounts of such TEACH Grants provided to such recipient shall be
treated as a Direct Loan under part D of title IV, and shall be subject
to repayment in accordance with terms and conditions specified by the
Secretary in regulations promulgated to carry out this part.
``SEC. 234. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$600,000,000 for fiscal year 2007 and such sums as may be necessary for
each of the 4 succeeding fiscal years.
``PART D--RECRUITING TEACHERS WITH MATHEMATICS, SCIENCE, ENGINEERING,
TECHNOLOGY, OR LANGUAGE MAJORS
``SEC. 241. PROGRAM AUTHORIZED.
``(a) Definition of High-Need School.--In this section, the term
`high-need school' means a school described in section 1114(a) of the
Elementary and Secondary Education Act of 1965.
``(b) Grants Authorized.--
``(1) In general.--From the amounts appropriated under
section 242, the Secretary shall make competitive grants to
institutions of higher education to improve the availability
and recruitment of teachers from among students majoring in
mathematics, science, engineering, technology, a critical-need
foreign language (as determined by the Secretary under section
2222 of the New National Defense Education Act), special
education, or teaching the English language to students with
limited English proficiency.
``(2) Priority.--In awarding grants under paragraph (1),
the Secretary shall give priority to institutions of higher
education offering programs that--
``(A) focus on preparing teachers in subjects in
which there is a shortage of highly qualified teachers
and increasing the number of teachers from minority or
underrepresented groups; and
``(B) prepare students to teach in high-need
schools.
``(c) Application.--Any institution of higher education desiring to
obtain a grant under this section shall submit to the Secretary an
application at such time, in such form, and containing such information
and assurances as the Secretary may require, which shall--
``(1) include reporting on baseline production of
teachers--
``(A) with expertise in mathematics, science, a
critical-need foreign language, special education, or
teaching students with limited English proficiency;
``(B) from minorities or underrepresented groups;
and
``(C) who teach for 5 years or more in a high-need
school; and
``(2) establish a goal and timeline for increasing the
number of teachers described in each subparagraph of paragraph
(1) who are prepared for teaching by the institution.
``(d) Grant Award Amounts.--In determining the amount of a grant
award under this section to an institution of higher education, the
Secretary shall consider--
``(1) the extent to which the institution--
``(A) focuses on preparing teachers in subjects in
which there is a shortage of highly qualified teachers
and increasing the number of teachers from minority or
underrepresented groups; and
``(B) prepares students to teach in high-need
schools; and
``(2) in the case of an institution that has previously
received a grant under this section, the progress made by the
institution in increasing the number of teachers described in
subsection (c)(1), as compared to the baseline production of
such teachers reported in the institution's initial
application.
``(e) Use of Funds.--Funds made available by a grant under this
section--
``(1) shall be used to create new recruitment incentives to
teaching for students from other majors, with an emphasis on
high-need subjects such as mathematics, science, engineering
and technology education, a critical-need foreign language,
special education, and teaching the English language to
students with limited English proficiency and other subjects
identified as high-need by the Federal Government, State
government, or local educational agency;
``(2) may be used to upgrade the curriculum in order to
provide all students studying to become teachers with high-
quality instructional strategies for teaching reading and
teaching the English language to students with limited English
proficiency, and for modifying instruction to teach students
with special needs;
``(3) may be used to integrate school of education faculty
with other arts and science faculty in mathematics, science,
engineering, technology, a critical-need foreign language, or
teaching the English language to students with limited English
proficiency, through steps such as--
``(A) dual appointments for faculty between schools
of education and schools of arts and science or
engineering; and
``(B) integrating coursework with clinical
experience;
``(4) may be used to develop strategic plans between
schools of education and local educational agencies to better
prepare teachers for high-need schools, including the creation
of professional development partnerships for training new
teachers in state-of-the-art practice;
``(5) may be used to create pilot programs to foster
collaborations at the institution of higher education between a
school of science, mathematics, or engineering, or a foreign
language department or language center, and a school of
education in order to enable the collaborating entities to
develop a 4-year program of study that would combine a
baccalaureate degree in mathematics, science, engineering, or
technology with concurrent teacher certification or licensure;
and
``(6) may be used to develop and implement a master's
degree program for current mathematics, science, or engineering
and technology education teachers that--
``(A) will strengthen the participating teachers'
subject area knowledge and pedagogical skills; and
``(B) shall be designed to allow a teacher to
enroll in the program on a part-time basis and obtain a
master's degree within a 2-year period.
``(f) Reports.--For each year that an institution of higher
education receives a grant under this section, the institution of
higher education shall prepare and submit to the Secretary an annual
report documenting the baseline data regarding the teachers described
in subsection (c)(1) and the progress made toward increasing the number
of such teachers, as described in subsection (c)(2).
``SEC. 242. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$500,000,000 for fiscal year 2007 and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
(b) Part A Authorization.--Section 210 of the Higher Education Act
of 1965 (20 U.S.C. 1030) is amended by striking ``$300,000,000 for
fiscal year 1999'' and inserting ``$400,000,000 for fiscal year 2007''.
CHAPTER 3--ENSURING COLLEGE ACCESS FOR ALL
SEC. 2131. CONTRACT FOR EDUCATIONAL OPPORTUNITY (CEO) GRANTS.
(a) Definitions.--In this section:
(1) Cohort.--The term ``cohort'' means a group of students
in a State who are in the same grade for an identified school
year.
(2) Expected family contribution.--The term ``expected
family contribution'', with respect to a student, means the
student's expected family contribution as determined in
accordance with part F of the Higher Education Act of 1965 (20
U.S.C. 1087kk et seq.).
(3) Unmet need.--The term ``unmet need'', with respect to a
student, means the difference between the cost of attendance
(as defined in section 472 of the Higher Education Act of 1965
(20 U.S.C. 108711) to attend an institution of higher education
for an academic year and the resources available to the student
for such academic year, including Federal, State, and
institutional financial assistance and the student's expected
family contribution.
(b) Purposes.--The purposes of this section are--
(1) to encourage States to provide a financial aid
guarantee for low-income students;
(2) to increase student academic performance and
achievement;
(3) to increase public school secondary school graduation
rates as well as enrollment, persistence, and graduation rates
in public and private institutions of higher education,
especially among low-income and underrepresented minority
students; and
(4) to improve the overall quality and supply of a State's
workforce.
(c) Payments to States Authorized.--
(1) In general.--The Secretary shall pay to States the
Federal share, as determined under subsection (e), in order to
assist the States in awarding contract for educational
opportunity grants (referred to in this section as ``CEO
grants''), under subsection (g) to students in a cohort who
sign a contract for educational opportunity in grade 8 and
satisfy the requirements of the contract. A CEO grant shall
provide each such student with a need-based financial aid
guarantee, in an amount equal to the student's calculated unmet
need to attend a 2- or 4-year degree-granting public
institution of higher education in the State, to enable the
student to attend a 2- or 4-year degree-granting public or
private institution of higher education in the State.
(2) Mandatory spending.--This subsection constitutes budget
authority in advance of appropriations Acts and represents the
obligation of the Secretary to provide for the payment of
amounts provided under this subsection.
(d) Application.--
(1) In general.--A State desiring a payment under
subsection (c) shall submit, through the State agency
identified in the application, to the Secretary an application
at such time, in such manner, and containing such information
as the Secretary may require.
(2) Application.--An application submitted under paragraph
(1) shall include the following:
(A) A description of how the State will establish a
State benchmark for increasing the overall public
school secondary school graduation rate and the
enrollment, persistence, and graduation rates at the
State's 2- and 4-year degree-granting public and
private institutions of higher education, as well as a
description of strategies and activities the State will
employ to achieve the State's set goals as reflected in
the benchmark.
(B) The identification of the State agency that
will administer the CEO grants program, and a
description of the State agency's capacity to
administer such program.
(C) A description of the entities that will
contribute funds for the non-Federal share of the CEO
grants program.
(D) A description of the State's academic and
nonacademic components of the contract for educational
opportunity, including 100 hours of community service,
and how the State defines satisfactory academic
progress toward completing coursework that leads to a
secondary school diploma.
(E) A description of how the State agency will
provide access for all students to a State curriculum
that prepares the students to enter into credit-bearing
coursework in higher education without the need for
remediation, the 21st century workforce, or the Armed
Forces.
(F) A description of how the State agency will
notify students in grade 7 of their eligibility to
participate in the CEO grants program and earn a CEO
grant, as well as how the State will specifically
target students from low-income and underrepresented
minority families.
(G) A description of how the State agency will
regularly communicate with a cohort from the time the
students sign the contract for educational opportunity
through the period that the students are eligible for
CEO grants.
(H) An assurance that the State will award a CEO
grant, in the amount of the student's calculated unmet
need to attend a 2- or 4-year degree-granting public
institution of higher education in the State, to each
student who successfully meets the requirements of the
contract for educational opportunity.
(I) An assurance that decisions regarding the
State's higher education budget shall not lead to
increases in tuition and fees at public 2- or 4-year
degree-granting institutions of higher education that
are greater than the Consumer Price Index.
(J) An assurance that the State shall maintain
current levels of investment in State student aid
programs in addition to providing the non-Federal share
required under subsection (e)(4).
(e) Payments; Use of Funds.--
(1) In general.--The Secretary shall pay the Federal share
of the CEO grants program, in the amount described in paragraph
(4), to each State that submits a complete application pursuant
to subsection (d).
(2) Use of funds.--The Federal share and non-Federal share
described in paragraph (4) shall be used exclusively for
awarding financial aid grants to cover the unmet need for all
students in a cohort who have successfully met the components
of the State's contract, except that a State may use not more
than 2 percent of such funds for administrative purposes.
(3) Subsequent payments.--
(A) In general.--The Secretary shall make
subsequent annual payments for future cohorts to
States, in accordance with paragraph (4), that receive
a payment under this section and that are not
determined to be ineligible under subparagraph (B).
(B) Ineligibility.--
(i) In general.--Except as provided in
clause (ii), the Secretary shall determine a
State to be temporarily ineligible to receive a
payment under subparagraph (A) if--
(I) the State fails to submit an
annual report pursuant to subsection
(h); or
(II) the Secretary determines,
based on information submitted in the
annual report submitted under
subsection (h), that--
(aa) the State is not
effectively meeting the terms
and goals of the application;
or
(bb) that the State is not
making satisfactory progress
toward the benchmark set forth
in subsection (d)(2)(A).
(ii) Ineligibility not to affect certain
cohorts.--A determination of ineligibility to
receive subsequent payments for future cohorts
under clause (i) with respect to a State shall
not apply to payments for students in a cohort
in the State who are in grade 8, 9, 10, 11, or
12 at the time of the determination.
(iii) Reinstatement.--If the Secretary
determines a State is ineligible under clause
(i), the Secretary may enter into an agreement
with the State setting forth the terms and
conditions under which the State may regain
eligibility to receive payments under this
section.
(4) Matching requirement.--The amount of the Federal share
under this section for an academic year shall be equal to the
amount of the non-Federal share provided by the State for such
year. The sum of the Federal share and the non-Federal share
for an academic year shall be an amount equal to the total
unmet need, for the academic year, to attend a 2- or 4-year
degree-granting public institution of higher education in the
State, for all students in an identified cohort that complete
all eligibility requirements of a contract for educational
opportunity.
(f) Reallotment or Redistribution of Funds.--If funds remain for a
cohort for 6 years after the cohort has graduated from secondary
school, the State shall return excess Federal funds to the Secretary.
Any returned excess funds shall be used by the Secretary to carry out
the program under this section.
(g) CEO Grants.--
(1) In general.--A State receiving a payment under
subsection (c) for a cohort shall provide, in the amount
determined under paragraph (3), a CEO grant to each student in
the cohort who--
(A) successfully completes the requirements of the
contract for educational opportunity; and
(B) enrolls in a 2- or 4-year degree-granting
institution of higher education in the State not later
than 2 years after receiving a secondary school
diploma.
(2) Contracts for educational opportunity.--
(A) In general.--A student who is in a cohort for
which a State is eligible for payments under subsection
(c) and who desires to receive a CEO grant shall sign a
contract for educational opportunity when the student
begins grade 8 stating that the student will carry out
all of the following by the time the student graduates
from secondary school:
(i) Receive a secondary school diploma.
(ii) By the beginning of grade 11 (except
as provided in subparagraph (B)), demonstrate
satisfactory academic progress (as determined
by the State agency) toward completing
coursework that leads to a secondary school
diploma.
(iii) Complete the academic components of
the State contract for educational opportunity,
as determined by the State agency.
(iv) Complete the nonacademic portion of
the State contract for educational opportunity
(as determined by the State agency), including
100 hours of community service, of which at
least 50 hours of community service shall be
completed before the student begins grade 11
(except as provided in subparagraph (B)).
(v) Apply for admission to a 2- or 4-year
degree-granting institution of higher education
in the State.
(vi) Preceding the date that the student
intends to enroll in an institution of higher
education, file for Federal financial aid.
(B) Special circumstances.--
(i) Transition.--During the academic year
following the date of enactment of this Act, in
the case of students in a cohort who are in
grade 9, 10, 11, or 12 for such academic year,
the students of such cohort shall be eligible
for CEO grants if such students sign the
contract for educational opportunity during the
academic year and otherwise complete all of the
eligibility requirements for the contract for
educational opportunity under subparagraph (A)
as applicable and by such time as determined by
the State and approved by the Secretary.
(ii) Students who move into the state.--In
the case of a student who moves into a State
after the student begins grade 8, such student
shall be eligible for a CEO grant from such
State if such student signs the contract for
educational opportunity at the time the student
moves into the State and the student otherwise
completes all of the eligibility requirements
for the contract for educational opportunity
under subparagraph (A), as applicable and by
such time as determined by the State and
approved by the Secretary.
(3) Amount of ceo grants.--
(A) In general.--A CEO grant for an academic year
shall be in an amount equal to the student's calculated
unmet need to attend a 2- or 4-year degree-granting
public institution of higher education in the State for
such year.
(B) Private institutions.--A CEO grant for a
student who elects to enroll in a private 2- or 4-year
degree-granting public institution of higher education
in the State shall be in the amount described in
subparagraph (A).
(4) Multiple grants.--
(A) In general.--A State shall award a CEO grant to
a student who meets the requirements of this section
for each academic year that the student attends a 2- or
4-year degree-granting institution of higher education
in the State.
(B) Maximum number of grants.--During the 6-year
period beginning on the date of receipt of a CEO grant
under this subsection, a student who meets the
requirements of this subsection shall be eligible to
receive a CEO grant for each year that the student is
enrolled in a 2- or 4-year degree-granting institution
of higher education in the State, except that no
student shall receive a total of more than 4 CEO
grants.
(5) Ineligibility.--A student who otherwise meets the
requirements for a CEO grant shall be ineligible if the student
fails to maintain an acceptable level of academic standing, as
determined by the institution of higher education that the
student attends, or is dismissed from the institution of higher
education for disciplinary reasons.
(h) Evaluation and Report.--A State receiving a payment under
subsection (c) for a cohort shall prepare and submit an annual report
to the Secretary on the success of the cohort. The State report shall
include the following:
(1) The following information relating to the students in
the cohort who sign a contract for educational opportunity, as
applicable:
(A) The participation and completion rates in the
CEO grants program under this section.
(B) The public school secondary school graduation
rate and how the rate relates to the established State
benchmark described in subsection (d)(2).
(C) The rate of enrollment in public and private
institutions of higher education and how the rate
relates to the established State benchmark.
(D) The rate of persistence in public and private
institutions of higher education and how the rate
relates to the established State benchmark.
(E) The rate of graduation from public and private
institutions of higher education and how the rate
relates to the established State benchmark.
(F) Average CEO grant aid per student.
(G) A description of, and justification for, any
increase in tuition and fees at the public 2- or 4-year
degree-granting institutions of higher education in the
State.
(2) A comparison of the rates described in subparagraphs
(B) through (E) of paragraph (1) for students in the cohort who
sign a contract for educational opportunity to such rates for a
representative sample of students in the cohort in the State
who do not sign a contract.
Subtitle B--Arming Americans With 21st Century Knowledge and Skills
CHAPTER 1--INCREASING THE NUMBER OF NEW AMERICAN SCIENTISTS, ENGINEERS,
AND LANGUAGE EXPERTS
SEC. 2211. PURPOSE.
The purpose of this chapter is to increase the number of low-income
and middle-income students who pursue careers in mathematics, science,
technology, engineering, and critical-need foreign languages.
SEC. 2212. GRANTS FOR STRENGTHENING MATHEMATICS, SCIENCE, AND
ENGINEERING AND TECHNOLOGY EDUCATION INFRASTRUCTURE.
(a) Grants for Strengthening Mathematics, Science, and Engineering
and Technology Education Infrastructure.--Part D of title V of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7241 et seq.)
is amended by adding at the end the following:
``SUBPART 22--GRANTS FOR STRENGTHENING MATHEMATICS, SCIENCE, AND
ENGINEERING AND TECHNOLOGY EDUCATION INFRASTRUCTURE
``SEC. 5621. GRANTS FOR STRENGTHENING MATHEMATICS, SCIENCE, AND
ENGINEERING AND TECHNOLOGY EDUCATION INFRASTRUCTURE.
``(a) Purpose.--The purpose of this section is to improve
mathematics, science, and engineering and technology education
infrastructure in public elementary schools and secondary schools to
facilitate improved educational opportunities for all students.
``(b) Definition of High-Need.--In this section, the term `high-
need', when used with respect to a school, means a public elementary
school or secondary school that is eligible for assistance under
section 1114(a) of the Elementary and Secondary Education Act of 1965.
``(c) Program Authorized.--From amounts appropriated under section
5401(b) for a fiscal year, and subject to subsection (d), the
Secretary, in consultation with the Director of the National Science
Foundation, shall award grants to local educational agencies to enable
the local educational agencies to carry out the activities described in
subsection (g).
``(d) Reservation of Funds.--From amounts appropriated under
section 5401(b) for a fiscal year, the Secretary shall reserve a total
of \1/2\ of 1 percent for the Secretary of the Interior to award grants
to elementary schools and secondary schools operated or funded by the
Bureau of Indian Affairs to enable such elementary schools and
secondary schools to carry out the activities described in subsection
(g).
``(e) Application.--
``(1) In general.--A local educational agency desiring a
grant under subsection (c) shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.
``(2) Contents.--The application described in paragraph (1)
shall include the following:
``(A) A description of the activities under
subsection (g) for which assistance is sought and the
costs of such activities.
``(B) A description of the process through which
the local educational agency identified the activities
described in subparagraph (A).
``(C) Clear principles that the local educational
agency used to determine the priority of qualifying
activities under this section that prioritize the use
of quantitative data, such as student achievement on
standardized assessments and income data, in order to
give priority to projects benefiting high-need schools.
``(D) An assurance that the local educational
agency will provide a complete and detailed accounting
of the use of grant funds awarded to the local
educational agency under this section.
``(E) A description of the evaluation process that
will assess the accomplishments of the program.
``(f) Application Approval.--
``(1) Determination in consultation with national science
foundation.--The Secretary shall review each application
submitted under subsection (e) to determine whether the
application is sufficient. In making such a determination, the
Secretary shall consult with the Director of the National
Science Foundation, in part to ensure that the application is
coordinated with any preexisting National Science Foundation
initiatives in the State.
``(2) Determination of insufficient application.--If the
Secretary determines that an application submitted by a local
educational agency does not meet the requirements of paragraph
(1) or subsection (e), the Secretary shall provide the local
educational agency with--
``(A) a written explanation of why the application
did not comply with such requirements; and
``(B) an opportunity to submit an amended
application.
``(3) Priority.--In awarding grants under this section, the
Secretary shall give priority to local educational agencies
with a high percentage of high-need schools.
``(g) Required Use of Funds.--A local educational agency that
receives a grant under subsection (c) shall use grant funds, in
accordance with the application of the local educational agency, to
carry out not less than 1 of the following:
``(1) The purchase or refurbishment of mathematics,
science, and engineering and technology education equipment,
including laboratory equipment.
``(2) The purchase of instructional materials or curricula
with proven effectiveness in improving mathematics, science,
and engineering and technology education outcomes, including
age-appropriate reading materials on varying grade levels that
provide poor readers with access to mathematics, science, and
engineering and technology education subject matter.
``(3) Support for a science, mathematics, or engineering
and technology education specialist in each school who is
responsible for--
``(A) assisting in the implementation of the
school's science, mathematics, or engineering and
technology education program;
``(B) assisting other teachers in delivering
quality instruction;
``(C) assisting in identifying and developing
professional development opportunities tied to the
curriculum; and
``(D) providing guidance on curricula, equipment,
and other components necessary for high-quality
instruction.
``(4) Any other directly related activity--
``(A) identified by the local educational agency in
the application required under subsection (e); and
``(B) approved by the Secretary, in consultation
with the Director of the National Science Foundation.
``(h) Report.--
``(1) In general.--A local educational agency that receives
a grant under this section for a fiscal year shall submit, not
later than January 31 of the succeeding fiscal year, a report
in such form and containing such information as the Secretary
determines to be reasonably necessary to evaluate the
compliance of the local educational agency with the provisions
of this section.
``(2) Contents.--The report described in paragraph (1)
shall include the following:
``(A) A description of the activities carried out
with grant funds under this section.
``(B) A complete and detailed accounting of the use
of funds awarded under this section, including how the
local educational agency gave priority to projects
benefiting students served by high-need schools.
``(C) A description of how the local educational
agency assesses the impact of the program.
``(D) A description of how students were served by
the projects assisted under this section, including any
expansion of inquiry-based learning opportunities, and
an accounting of the approximate number of students so
served.
``(E) An accounting of student academic progress
made as a result of activities funded under this
section, using previously established statewide
academic achievement assessments in mathematics and
science.
``(F) Qualitative testimony from students,
teachers, administrators, or parents on the effect of
activities funded under this section.
``(3) Penalty.--A local educational agency that receives a
grant under this section for a fiscal year but does not submit
the report required under this subsection shall not be eligible
to receive any subsequent grant funds under this section.''.
(b) Authorization of Appropriations.--Section 5401 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7241) is
amended--
(1) by striking ``this part'' and inserting ``this part
(excluding subpart 22)'';
(2) by striking ``There are'' and inserting the following:
``(a) General Authorization.--There are''; and
(3) by adding at the end the following:
``(b) Mathematics, Science, and Engineering and Technology
Education Infrastructure.--There are authorized to be appropriated to
carry out subpart 22, $500,000,000 for fiscal year 2007 and such sums
as may be necessary for each of the 4 succeeding fiscal years.''.
(c) Table of Contents.--The table of contents in section 2 of the
Elementary and Secondary Education Act of 1965 is amended by inserting
after the item relating to section 5618 the following:
``Subpart 22--Grants for Strengthening Mathematics, Science, and
Engineering and Technology Education Infrastructure
``Sec. 5621. Grants for strengthening mathematics, science, and
engineering and technology education
infrastructure.''.
SEC. 2213. SCIENCE, TECHNOLOGY, ENGINEERING, MATHEMATICS, AND CRITICAL-
NEED FOREIGN LANGUAGE SCHOLARS.
(a) Definitions.--In this section:
(1) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(b) Program Authorized.--From amounts appropriated under subsection
(j) for a fiscal year, the Secretary shall carry out a program to award
grants, on a competitive basis, to institutions of higher education (or
consortia of such institutions) to enable the institutions of higher
education (or consortia) to provide scholarships to make higher
education tuition free for low-income and middle-income undergraduate
and graduate students who are enrolled at the institutions of higher
education to earn degrees in science, technology, engineering,
mathematics, and critical-need foreign languages (as determined by the
Secretary under section 2222).
(c) Application.--An institution of higher education or a
consortium seeking a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
(d) Award Basis.--In awarding grants under this section, the
Secretary shall give special consideration to programs that--
(1) are a central organizational focus of the institution
of higher education or consortium;
(2) enable scholarship recipients to become successful
members of the science, technology, engineering, mathematics,
and critical-need foreign language 21st century workforce; and
(3) recruit undergraduate and graduate students, especially
female and underrepresented minority students, who would
otherwise not pursue careers in science, technology,
engineering, mathematics, or a critical-need foreign language.
(e) Use of Funds.--An institution of higher education or a
consortium receiving a grant under this section shall use the grant
funds to carry out a program to encourage low-income and middle-income
undergraduate and graduate students enrolled at the institution of
higher education, or at an institution of higher education that is a
member of the consortium, respectively, to earn degrees in science,
technology, engineering, mathematics, or a critical-need foreign
language, through administering scholarships in accordance with
subsection (f).
(f) Scholarships.--
(1) Scholarship requirements.--Scholarships under this
subsection shall be available to a student enrolled at an
institution of higher education that receives a grant under
this section or is a member of a consortium that receives a
grant under this section--
(A)(i) whose parents have an adjusted gross income
for the most recent tax year available of--
(I) less than $53,000 if single; or
(II) less than $107,000 if married; or
(ii) in the case of a student who is independent
(as defined in section 480 of the Higher Education Act
of 1965 (20 U.S.C. 1087vv), who meets the adjusted
gross income requirements of clause (i); and
(B)(i) in the case of a student in the first or
second year of a program of undergraduate education,
who enrolls in prerequisite courses for a baccalaureate
degree with a major in science, technology,
engineering, mathematics, or a critical-need foreign
language, as determined by the institution of higher
education that the student attends;
(ii) in the case of a student who has completed 2
years of a program of undergraduate education, who is
pursuing a baccalaureate degree with a major in
science, technology, engineering, mathematics, or a
critical-need foreign language; or
(iii) in the case of a graduate student, who is
pursuing a graduate degree in science, technology,
engineering, mathematics, or a critical-need foreign
language.
(2) Amount.--
(A) Annual amount.--An institution of higher
education or consortium that receives a grant under
this section shall award a scholarship to a student
described in paragraph (1) in an amount that does not
exceed $5,500 per academic year, except that no student
shall receive for any academic year an amount that is
more than the cost of attendance, as determined under
section 472 of the Higher Education Act of 1965 (20
U.S.C. 1087ll)), at the institution where the student
is enrolled for such academic year.
(B) Reductions in amount for part-time students.--
In any case where a student attends an institution of
higher education on less than a full-time basis
(including a student who attends an institution of
higher education on less than a half-time basis) during
any academic year, the amount of the scholarship for
which that student is eligible shall be reduced in
proportion to the degree to which that student is not
so attending on a full-time basis, in accordance with a
schedule of reductions established by the Secretary for
the purpose of this section, computed in accordance
with this subsection. Such schedule of reductions shall
be established by regulation and published in the
Federal Register in accordance with the schedule
described in section 482 of the Higher Education Act of
1965 (20 U.S.C. 1089).
(C) Cumulative amount.--An institution of higher
education or consortium receiving a grant under this
section may award an individual a scholarship under
this subsection for more than 1 year, or for both
undergraduate and graduate study, except that--
(i) no individual shall receive a total
amount of scholarship support under this
subsection for undergraduate study that is more
than $22,000; and
(ii) no individual shall receive a total
amount of scholarship support under this
section for graduate study that is more than
$22,000.
(g) Conditions of Support.--As a condition of acceptance of a
scholarship under this section, a recipient shall enter into an
agreement with the institution of higher education or consortium--
(1) accepting the terms of the scholarship; and
(2) agreeing to provide the awarding institution of higher
education or consortium with up-to-date contact information and
to participate in surveys provided by the Secretary of
Education, institution of higher education, or consortium as
part of an assessment program.
(h) Failure To Complete Obligation.--
(1) General rule.--An individual who has received a
scholarship under this section shall be liable to the
institution of higher education or consortium that awarded the
scholarship, as well as to the United States, for the amount of
the scholarship, if such individual--
(A) fails to maintain an acceptable level of
academic standing in the institution of higher
education in which the individual is enrolled, as
determined by the institution of higher education;
(B) is dismissed from such institution for
disciplinary reasons; or
(C) withdraws from the baccalaureate or graduate
degree program for which the scholarship was made
before the completion of such program, and does not
transfer into another program that meets the
requirements of subsection (f)(1)(B).
(2) Exclusion from future scholarships.--If a circumstance
described in paragraph (1) occurs, all of the following shall
apply:
(A) Nonrenewal of scholarship.--The institution of
higher education or consortium shall not renew the
scholarship to the individual. However, at the
discretion of the institution of higher education or
consortium awarding the scholarship, an individual may
regain eligibility for a scholarship under this section
after completing not less than 1 academic term at the
institution, if the individual--
(i) maintains an acceptable level of
academic standing in the institution of higher
education, as determined by the institution;
and
(ii) reenrolls in the baccalaureate or
graduate degree program for which the
scholarship was made.
(B) Ineligibility for federal scholarships.--The
individual shall become automatically ineligible to
participate in any Federal scholarship programs for
future years.
(3) Use of recovered scholarship funds.--An institution of
higher education or consortium that recovers funds under
paragraph (1) shall use such funds to provide additional
scholarships under subsection (f).
(i) Data Collection.--An institution of higher education or
consortium receiving a grant under this section shall supply to the
Secretary any relevant statistical and demographic data on scholarship
recipients the Secretary may request.
(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $750,000,000 for fiscal year
2007 and such sums as may be necessary for each of the 4 succeeding
fiscal years.
SEC. 2214. EXPANSION OF NATIONAL SCIENCE FOUNDATION EDUCATION AND HUMAN
RESOURCES DIRECTORATE.
(a) Purpose.--The purpose of this section is to ensure the
continued involvement of experts at the National Science Foundation in
improving science, technology, engineering, and mathematics at the
elementary, secondary, and postsecondary levels by doubling funding for
the education and human resources programs of the National Science
Foundation, in addition to the increases made under section 2125 for
the mathematics and science partnerships described in section 9 of the
National Science Foundation Authorization Act of 2002 and in addition
to any other amounts authorized or appropriated to the National Science
Foundation.
(b) Authorization of Appropriations for NSF Education and Human
Resources.--There is authorized to be appropriated to the National
Science Foundation for education and human resources, in addition to
the amounts authorized under section 2125(a)(2), amounts as follows:
(1) For fiscal year 2007, $886,810,000.
(2) For fiscal year 2008, $1,040,110,000.
(3) For fiscal year 2009, $1,193,410,000.
(4) For fiscal year 2010, $1,346,710,000.
(5) For fiscal year 2011, $1,500,000,000.
(c) Science, Mathematics, Engineering, and Technology Talent
Expansion Program.--Section 8(7)(C) of the National Science Foundation
Authorization Act of 2002 (Public Law 107-368) is amended--
(1) by redesignating clauses (i) through (vi) as subclauses
(I) through (VI), respectively, and indenting appropriately;
(2) by striking ``include those that promote high quality--
'' and inserting ``include programs that--
``(i) promote high-quality--''; and
(3) in clause (i)--
(A) in subclause (III) (as redesignated by
paragraph (1)), by striking ``for students;'' and
inserting ``for students, especially underrepresented
minority and female mathematics, science, engineering,
and technology students;''; and
(B) in subclause (VI) (as redesignated by paragraph
(1)), by striking the period and inserting a semicolon;
and
(4) by adding at the end the following:
``(ii) finance summer internships for mathematics,
science, engineering, and technology undergraduate
students;
``(iii) facilitate smaller mathematics, science,
engineering, and technology class sizes;
``(iv) facilitate the hiring of additional
mathematics, science, engineering, and technology
faculty;
``(v) serve as bridges to enable underrepresented
minority and female secondary school students to obtain
extra mathematics, science, engineering, and technology
training prior to entering an institution of higher
education; and
``(vi) finance mathematics, science, engineering,
and technology student research activities.''.
CHAPTER 2--IMPROVING GLOBAL KNOWLEDGE AND SKILLS
SEC. 2221. DEFINITIONS.
In this chapter:
(1) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(2) Local educational agency; state educational agency.--
The terms ``local educational agency'' and ``State educational
agency'' have the meanings given the terms in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Education.
SEC. 2222. CRITICAL-NEED LANGUAGES.
The Secretary shall, prior to requesting applications for grants
under this chapter during each grant cycle, consult with, and receive
recommendations regarding, critical need for expertise in foreign
languages and world regions from the head official, or a designee of
such head official, of the National Security Council, the Department of
Homeland Security, the Department of Defense, the Department of State,
the Federal Bureau of Investigation, the Department of Labor, and the
Department of Commerce, and the Director of National Intelligence. The
Secretary shall take into account such recommendations when developing
a list of critical-need languages and when requesting applications for
grants under this chapter. The Secretary shall also make available to
applicants the list of the critical-need languages for the grant cycle.
SEC. 2223. CRITICAL-NEED LANGUAGE PROGRAM GRANTS.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State educational agency; or
(B) a partnership between a local educational
agency and an institution of higher education.
(2) High-need school.--The term ``high-need school'' means
a public elementary or secondary school that is eligible for
assistance under section 1114(a) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6314(a)).
(b) Program Authorized.--The Secretary shall award grants, on a
competitive basis, to eligible entities to enable the eligible entities
to develop programs that allow students to be exposed to and immersed
in other languages and cultures from the early grades throughout the
students' education.
(c) Application.--An eligible entity desiring a grant under this
section shall submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary may
require.
(d) Award Basis.--In awarding grants under this section, the
Secretary shall give priority to eligible entities that will use grant
funds for programs that target a high-need school.
(e) Use of Funds.--An eligible entity receiving a grant under this
section shall use grant funds to carry out 1 or more of the following:
(1) Establish and maintain programs in a critical-need
language (as determined by the Secretary under section 2222) in
the elementary schools served by the eligible entity.
(2) Offer additional or more advanced critical-need
language classes in middle schools and secondary schools.
(3) Create and implement effective models of instruction in
critical-need languages and world cultures.
(4) Create and maintain internationally themed schools
that--
(A) offer dual language immersion programs;
(B) focus on international content; and
(C) use technology to bring the world into the
classroom virtually.
(f) Technical Assistance Centers.--
(1) In general.--The Secretary shall enter into contracts
with entities to establish a system of regional critical-need
foreign language technical assistance centers focused on
developing critical-need language programs in kindergarten
through grade 12 education.
(2) Application.--An entity desiring a contract under this
subsection shall submit an application to the Secretary at such
time, in such manner, and containing such information as the
Secretary may require.
(3) Activities.--Each center established under this
subsection shall--
(A) assist States and local educational agencies in
developing critical-need language curricula; and
(B) disseminate best practices in the field.
(g) Report.--Not later than 90 days after the last day of the grant
or contract period, an eligible entity receiving a grant under
subsection (a) or an entity receiving a contract under subsection (f)
shall prepare and submit a report to the Secretary describing the
supported activities.
(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $100,000,000 for fiscal year
2007 and such sums as may be necessary for each of the 4 succeeding
fiscal years.
SEC. 2224. INTERNATIONAL SUMMER INSTITUTE GRANTS.
(a) Program Authorized.--The Secretary shall award grants, on a
competitive basis, to institutions of higher education or nonprofit
organizations (or consortia of such institutions or organizations) to
carry out summer institute programs that help teachers integrate
international content into the curricula and improve the teachers'
knowledge and teaching of foreign cultures.
(b) Partnership.--In order to receive a grant under this section,
an institution of higher education or a nonprofit organization (or a
consortium of such institutions or organizations) shall enter into a
partnership with a local educational agency to carry out the grant
activities.
(c) Application.--An institution of higher education, nonprofit
organization, or consortium desiring a grant under this section shall
submit an application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
(d) Use of Funds.--An institution of higher education, nonprofit
organization, or consortium receiving a grant under this section shall
use grant funds to carry out 1 or more of the following:
(1) Integrate international content into existing summer
institute programs.
(2) Assist States in creating new summer institutes to
prepare teachers--
(A) to teach international subjects, such as world
history, global economics, and geography; and
(B) to integrate international content into other
subjects to improve global competence.
(e) Report.--Not later than 90 days after the last day of the grant
period, an institution of higher education, nonprofit organization, or
consortium receiving a grant under this section shall prepare and
submit a report to the Secretary describing the grant activities.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $100,000,000 for fiscal year
2007 and such sums as may be necessary for each of the 4 succeeding
fiscal years.
SEC. 2225. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.
(a) Purpose.--The purpose of this section is to increase study
abroad and foreign language study opportunities in critical-need
languages for secondary school, undergraduate, and graduate students.
(b) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means--
(1) an institution of higher education;
(2) a consortium of institutions of higher education;
(3) an institution of higher education in partnership with
an international university;
(4) an institution of higher education in partnership with
a local educational agency;
(5) a State educational agency; or
(6) a local educational agency.
(c) Program Authorized.--From amounts appropriated under this
section for a fiscal year, the Secretary shall award grants, on a
competitive basis, to eligible entities to enable the eligible entities
to establish or strengthen foreign language study programs in critical-
need languages, as determined by the Secretary under section 2222.
(d) Amount and Duration of Grant.--Each grant awarded under this
section shall be--
(1) for an amount of not less than $500,000 for each year
of the grant; and
(2) for a period of not less than 4 years.
(e) Application.--An eligible entity that desires a grant under
this section shall submit an application to the Secretary at such time,
in such manner, and containing such information as the Secretary may
require.
(f) Use of Funds.--An eligible entity receiving a grant under this
section shall use the grant funds to establish or strengthen foreign
language study programs in critical-need languages, which may include
the following activities:
(1) The recruitment and retention of faculty in critical-
need languages.
(2) Curriculum development.
(3) The acquisition of materials to improve instructional
programs.
(4) The expansion of study abroad programs for
participating students.
(5) The development of foreign language immersion programs.
(6) Summer institutes for faculty development.
(7) Bridge programs that allow dual enrollment for
secondary school students in institutions of higher education.
(8) Programs to expand the understanding and knowledge of
cultural, geographic, and political factors within countries
with populations who speak critical-need languages.
(9) Research on, and evaluation of, the teaching of
critical-need foreign languages.
(10) Participation in national programs impacting critical-
need foreign languages.
(11) Data collection and analysis regarding the outcomes of
various student recruitment strategies and program design and
curricula approaches, and their impact on increasing--
(A) the number of students studying critical-need
languages; and
(B) the fluency of the students in the languages.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $100,000,000 for fiscal year
2007 and such sums as may be necessary for each of the 4 succeeding
fiscal years.
CHAPTER 3--INVESTING IN WORKERS THROUGH JOB TRAINING
SEC. 2231. PROJECTS TO PROVIDE LITERACY, TECHNOLOGY, AND TECHNICAL
SKILLS TRAINING.
(a) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) Small business.--The term ``small business'' means a
business with not more than 100 employees.
(b) Projects.--The Secretary shall carry out projects to provide
literacy, technology, and technical skills training for workers,
including both employed and unemployed workers.
(c) Grants.--In carrying out projects described in subsection (b),
the Secretary shall make grants to eligible partnerships.
(d) Eligible Partnerships.--
(1) In general.--To be eligible to receive such a grant, a
partnership shall be a local or regional public-private
partnership consisting of at least--
(A) 1 State or local workforce investment board
established under section 111 or 117 of the Workforce
Investment Act of 1998 (29 U.S.C. 2821 or 2832)
(including a consortium of such boards in a region);
(B) 1 institution of higher education, as defined
in section 101(a) of the Higher Education Act of 1965,
(including a consortium of such institutions);
(C) 1 business (including a consortium of such
businesses) or nonprofit employer; and
(D) 1 community-based organization, labor union,
trade association, or other intermediary.
(2) Designation of responsible fiscal agents.--Each
partnership described in paragraph (1) shall designate a
responsible fiscal agent to receive and disburse grant funds
under this section.
(e) Training.--
(1) Participants.--A partnership that receives a grant
under subsection (c) shall provide training through a project
described in subsection (b) to persons who are employed and who
wish to obtain and upgrade skills to qualify for existing jobs
(as of the date such training begins) and to persons who are
unemployed.
(2) Preparation.--Such training shall, to the extent
practicable, include the preparation of workers for a broad
range of positions along a career ladder.
(f) Start-Up Activities.--
(1) In general.--Except as provided in paragraph (2), not
more than 5 percent, or $75,000, whichever is less, of the
funds made available through a single grant made under this
section may be used toward the start-up costs of a partnership
or training project.
(2) Exception.--In the case of partnerships consisting
primarily of small businesses, not more than 10 percent, or
$150,000, whichever is less, of the funds made available
through a single grant made under this section may be used
toward the start-up costs of a partnership or training project.
(3) Duration of start-up period.--For purposes of this
subsection, a start-up period consists of a period of not more
than 1 month, beginning on the first day of the grant period.
At the end of the start-up period, training shall immediately
begin and no further Federal funds may be used for start-up
costs.
(g) Applications.--
(1) In general.--To be eligible to receive a grant under
this section, a partnership shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
(2) Contents.--Each application for such a grant shall--
(A) provide evidence of the need for the training
to be provided through the grant, by providing evidence
of skill shortages in existing or emerging industries
as demonstrated through reliable regional, State, or
local data;
(B) articulate the level of skills that workers
will be trained for and the manner by which attainment
of those skills will be measured; and
(C) include an agreement that the project will be
subject to evaluation by the Secretary to measure the
effectiveness of the project.
(3) Matching funds.--Each application for a grant to carry
out a project described in subsection (b) shall state the
manner by which the partnership will--
(A) make available, with respect to the costs to be
incurred by the partnership in carrying out the
project, non-Federal contributions (in cash or in kind)
in an amount equal to not less than 50 percent of the
Federal funds provided under the grant; and
(B) make the contributions available directly or
through donations from public or private entities, and
ensure that at least \1/2\ of the contributions will be
from businesses or nonprofit employers involved in the
partnership.
(h) Considerations.--
(1) Projects with commitments.--In making grants under this
section, the Secretary shall give consideration to an applicant
that provides a specific, measurable commitment--
(A) upon successful completion of a training course
by a participant--
(i) who is unemployed, to hire or
effectuate the hiring of the participant (where
applicable);
(ii) who is an incumbent worker, to
increase the wages or salary of the worker
(where applicable); or
(iii) to provide skill certification to the
participant;
(B) to provide training that is linked to industry-
accepted occupational skill standards, certificates, or
licensing requirements; or
(C) to provide a project that will lead to
attainment of baccalaureate or associate degrees.
(2) Expanded and collaborative projects.--In making grants
under this section, the Secretary shall give consideration to
an applicant that proposes to use grant funds--
(A) to demonstrate a significant ability to expand
a training project through such means as training more
workers or offering more courses; and
(B) to carry out a training project resulting from
a collaboration, especially with more than 1 small
business or with an entity carrying out a labor-
management training project.
(3) Partnerships involving small businesses.--In making
grants under this section, the Secretary shall give
consideration to an applicant that involves and directly
benefits more than 1 small business.
(4) Donations from public or private entities.--In making
grants under this section, the Secretary shall give
consideration to an applicant that provides a specific
commitment that a portion of the non-Federal contribution
described in subsection (g)(3) will be made available through
donations from other public or private entities, so as to
demonstrate the long-term sustainability of the project after
the expiration of the grant period involved.
(i) Administrative Costs.--A partnership that receives a grant to
carry out a project described in subsection (b) may not use more than
10 percent of the funds made available through the grant to pay for
administrative costs associated with the project.
(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $300,000,000 for fiscal year
2007 and such sums as may be necessary for each of the 4 succeeding
fiscal years.
TITLE III--KEEPING GOOD JOBS IN THE UNITED STATES
Subtitle A--Right To Know When Jobs are Shipped Overseas
SEC. 3101. 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 that 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 where the jobs are being created, or
shifted or transferred to; and
``(3) the reasons that such creation, shifting, or
transferring 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)'';
(4) in section 5--
(A) in subsection (a)--
(i) in paragraph (1), in the matter
following subparagraph (B), by striking ``60
days'' and inserting ``90 days''; and
(ii) in paragraph (3), by striking
``shutdown or layoff'' and inserting ``closing,
layoff, or offshoring involved''; and
(B) in subsection (b), by inserting ``and section
11(c)'' after ``in this section''; and
(5) in the table of contents, by striking the item relating
to section 3 and inserting the following:
``Sec. 3. Notice required before plant closings, mass layoffs, and
offshoring of jobs.''.
(d) Posting of Employee Rights.--
(1) Redesignation.--The Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2101 et seq.) is amended by
redesignating section 11 as section 13.
(2) Posting.--The Worker Adjustment and Retraining
Notification Act, as amended by paragraph (1), is further
amended by inserting after section 10 the following:
``SEC. 11. 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 employee rights as developed by the
Secretary under subsection (a).
``(c) Penalty.--Any employer that willfully violates this section
may be assessed a civil money penalty not to exceed $100 for each
separate offense.''.
(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 inserting after section 11 the following:
``SEC. 12. CONTENTS OF ANNUAL REPORTS BY THE SECRETARY OF LABOR.
``(a) Statistical Reports.--
``(1) Statistics.--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.
``(2) Reports.--The Secretary of Labor shall annually
prepare and submit to the President and the appropriate
committees of Congress reports containing statistics collected
or compiled under paragraph (1).
``(b) Offshoring Reports.--
``(1) Studies.--The Secretary of Labor shall annually
conduct studies on the offshoring of jobs (as defined in
section 2(a)(9)), including collecting information concerning--
``(A) the number of jobs affected;
``(B) the locations where the jobs are being
created, or shifted or transferred to; and
``(C) the reasons that such creation, shifting, or
transferring is occurring.
``(2) Reports.--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 containing the
results of the most recent study conducted under paragraph
(1).''.
Subtitle B--Removing Tax Incentives for Companies to Ship Jobs Overseas
SEC. 3201. 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.
Subtitle C--Requiring Government Contractors To Use American Workers
for Taxpayer-Funded Work
SEC. 3301. SHORT TITLE.
This subtitle may be cited as the ``United States Workers
Protection Act of 2006''.
SEC. 3302. LIMITATIONS ON OFF-SHORE PERFORMANCE OF CONTRACTS FOR THE
PROCUREMENT OF GOODS AND SERVICES.
(a) Limitations.--
(1) In general.--The Office of Federal Procurement Policy
Act (41 U.S.C. 403 et seq.) is amended by adding at the end the
following new section:
``SEC. 42. LIMITATIONS ON OFF-SHORE PERFORMANCE OF CONTRACTS FOR THE
PROCUREMENT OF GOODS AND SERVICES.
``(a) Conversions to Contractor Performance of Federal
Activities.--An activity or function of an executive agency that is
converted to contractor performance under Office of Management and
Budget Circular A-76 may not be performed by the contractor or any
subcontractor at a location outside the United States except to the
extent that such activity or function was previously performed by
Federal Government employees outside the United States.
``(b) Federal Contracts for the Procurement of Services.--(1) A
contract for the procurement of goods or services that is entered into
by the head of an executive agency may not be performed outside the
United States except to meet a requirement of the executive agency for
goods or services specifically at a location outside the United States.
``(2) The President may waive the prohibition in paragraph (1) in
the case of any contract for which the President determines in writing
that it is necessary in the national security interests of the United
States for goods or services under the contract to be performed outside
the United States.
``(3) Paragraph (1) does not apply to goods or services performed
outside the United States under the exception provided in subsection
(a).
``(c) State Contracts for the Procurement of Services.--(1) Funds
appropriated for financial assistance for a State may not be disbursed
to or for such State during a fiscal year unless the chief executive of
that State has transmitted to the Administrator for Federal Procurement
Policy, not later than April 1 of the preceding fiscal year, a written
certification that none of such funds will be expended for goods or
services performed outside the United States under contracts for the
procurement of goods or services entered into by such State.
``(2) In this subsection, the term `State' means each of the
several States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana
Islands, the Virgin Islands, Guam, American Samoa, and the Trust
Territory of the Pacific Islands.''.
(2) Clerical amendment.--The table of sections in section
1(b) of such Act is amended by adding at the end the following
new item:
``Sec. 42. Limitations on off-shore performance of contracts for the
procurement of services.''.
(b) Inapplicability to States During First Two Fiscal Years.--
Section 42(c) of the Office of Federal Procurement Policy Act (as added
by subsection (a)) shall not apply to disbursements of funds to a State
during the fiscal year in which this Act is enacted and the next fiscal
year.
(c) Repeal of Superseded Law.--Section 647 of the Transportation,
Treasury, and Independent Agencies Appropriations Act, 2004 (division F
of Public Law 108-199) is amended by striking subsection (e).
TITLE IV--LEVELING THE PLAYING FIELD FOR WORKERS HERE AND ABROAD
Subtitle A--Raise Living Standards Worldwide
SEC. 4101. LIMITATION ON TRADE AUTHORITIES PROCEDURES.
(a) In General.--Notwithstanding any other provision of law,
section 2103(b)(3) of the Bipartisan Trade Promotion Authority Act of
2002 (19 U.S.C. 3803(b)(3)) and the provisions of chapter 5 of title I
of the Trade Act of 1974 (19 U.S.C. 2191 et seq.) (in this section
referred to as ``trade authorities procedures'') shall not apply to any
bill implementing a bilateral or regional trade agreement unless that
agreement--
(1) prohibits forced and compulsory labor and prohibits
child labor; and
(2) contains dispute settlement and enforcement provisions
for failure to adhere to the prohibitions described in
paragraph (1) if the failure affects trade between the parties
to the agreement.
(b) Definitions.--For purposes of subsection (a) the terms ``forced
and compulsory labor'' and ``child labor'' have the meaning such terms
have when used in the 1998 International Labor Organization Declaration
on Fundamental Principles and Rights at Work.
(c) Monitoring.--There are authorized to be appropriated such sums
as may be necessary to the Department of Labor to fund the
International Labor Organization to monitor the compliance of countries
with the 1998 International Labor Organization Declaration on
Fundamental Principles and Rights at Work.
Subtitle B--Prevention of Currency Manipulation
SEC. 4201. INTERNATIONAL NEGOTIATIONS ON EXCHANGE RATE AND ECONOMIC
POLICIES.
Section 3004 of the Exchange Rates and International Economic Policy
Coordination Act of 1988 (22 U.S.C. 5304) is amended to read as
follows:
``SEC. 3004. INTERNATIONAL NEGOTIATIONS ON EXCHANGE RATE AND ECONOMIC
POLICIES.
``(a) Multilateral Negotiations.--The President shall seek to
confer and negotiate with other countries--
``(1) to achieve--
``(A) better coordination of macroeconomic policies
of the major industrialized nations; and
``(B) more appropriate and sustainable levels of
trade and current account balances, and exchange rates
of the dollar and other currencies consistent with such
balances; and
``(2) to develop a program for improving existing mechanisms
for coordination and improving the functioning of the exchange
rate system to provide for long-term exchange rate stability
consistent with more appropriate and sustainable current
account balances.
``(b) Bilateral Negotiations.--
``(1) In general.--The Secretary of the Treasury shall
analyze on an annual basis the exchange rate policies of
foreign countries, in consultation with the International
Monetary Fund, and consider whether countries manipulate the
rate of exchange between their currency and the United States
dollar for purposes of preventing effective balance of payments
adjustments or gaining unfair competitive advantage in
international trade. If the Secretary considers that such
manipulation is occurring with respect to any country that (A)
has material global current account surpluses and (B) has
significant bilateral trade surpluses with the United States,
the Secretary shall take action to initiate negotiations with
such foreign country on an expedited basis, in the
International Monetary Fund or bilaterally, for the purpose of
ensuring that such country regularly and promptly adjusts the
rate of exchange between its currencies and the United States
dollar to permit effective balance of payments adjustments and
to eliminate the unfair advantage.
``(2) Initiation of negotiations.--
``(A) In general.--On and after the date that is
180 days after the date negotiations described in
paragraph (1) are initiated with respect to a country,
unless a certification described in paragraph (3) has
been made to Congress with respect to such country, in
addition to any other duty, there shall be imposed an
additional rate of duty equal to an amount determined
by the Secretary on any article that is the growth,
product, or manufacture of the that country.
``(B) Factors to consider in establishing duty.--In
determining the additional rate of duty to impose with
respect to a country under this paragraph, the
Secretary of the Treasury, in consultation with the
Secretary of Commerce, shall take into consideration--
``(i) the length of time the country has
intervened in the value of its currency in one
direction or another;
``(ii) the country's rate of foreign
exchange accumulation;
``(iii) the country's capital controls and
payment restrictions; and
``(iv) the country's trade and current
account balances.
``(3) Certification.--The certification described in this
paragraph means a certification by the President to Congress
that the country with respect to which negotiations described
in paragraph (1) have been initiated 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 country has undergone a
substantial upward revaluation placing it at or near its fair
market value.
``(4) Additional rate of duty.--For purposes of this
subsection, the term `additional rate of duty' means a rate of
duty determined by the Secretary to be necessary to correct any
unfair advantage resulting from a country's acquiring foreign
exchange reserves or otherwise gaining an unfair competitive
advantage in the rate of exchange between its currency and the
United States dollar.
``(5) Exception.--The Secretary shall not be required to
initiate negotiations in any case where such negotiations would
have a serious detrimental impact on vital national economic
and security interests. In such a case, the Secretary shall
inform the chairman and the ranking minority member of the
Committee on Banking, Housing, and Urban Affairs of the Senate
and of the Committee on Financial Services of the House of
Representatives of the Secretary's determination.''.
Subtitle C--Encouraging Multilateral Corporations to Adopt Labor
Practices
SEC. 4301. SHORT TITLE.
This subtitle may be cited as the ``Global Worker Fairness Act''.
SEC. 4302. FINDINGS.
Congress finds that--
(1) 1,400,000,000 workers around the world earn less than
$2 per day;
(2) most of those workers live in countries that lack basic
labor protections, such as the protections against compulsory
and prison labor, protections against child labor, the right to
collective bargaining, and the right to a safe work
environment;
(3) many of those workers are willing to do jobs that
workers in the United States do now, but for much lower wages,
reduced benefits, and reduced workplace safety and protections;
(4) companies are often able to cut costs by exploiting
workers in other nations and not providing the workers with
adequate wages, benefits, or a safe workplace environment;
(5) that exploitation creates a race to the bottom that
undercuts United States workers and costs jobs in the United
States; and
(6) therefore, the United States needs to reward companies
that treat their foreign workers with decency and fairness,
because those companies are working to level the global playing
field for United States workers and deserve recognition for
their efforts.
SEC. 4303. DEFINITIONS.
In this subtitle:
(1) Core labor standards.--The term ``core labor
standards'' means the 8 fundamental labor conventions that the
International Labour Organization has identified.
(2) Labor market.--The term ``labor market'' means a system
consisting of employers as buyers and workers as sellers, the
purpose of which is to match job vacancies with job applicants
and to set wages.
(3) Multinational company.--The term ``multinational
company'' means a corporation, enterprise, or partnership,
including its subsidiaries, local affiliates, contractors, and
subcontractors, that does business in 2 or more countries.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
SEC. 4304. ESTABLISHMENT.
There are established the Global Worker Fairness Awards (referred
to individually in this subtitle as an ``Award'') and the Fair Labor
Certifications (referred to individually in this subtitle as a
``Certificate'').
SEC. 4305. CONFERRING OF AWARDS AND CERTIFICATES.
(a) In General.--The President or the Secretary shall annually
confer the Awards and Certificates on multinational companies that meet
the criteria set forth in section 4307(a), in accordance with section
4307(d).
(b) Plaques for Award.--Each Award shall be evidenced by a plaque
bearing the inscription ``Global Worker Fairness Award.'' One such
plaque shall be presented to each Award recipient. The plaque shall be
of such design and materials and bear such additional inscriptions as
the Secretary may prescribe.
(c) Documents for Certificate.--Each Certificate shall be evidenced
by a framed document bearing the words ``Fair Labor Certification''.
One such document shall be presented to each Certificate recipient. The
document shall be of such design and materials and bear such additional
inscriptions as the Secretary may prescribe.
(d) Ceremonies.--The President or the Secretary shall confer the
Awards and Certificates, with such ceremonies as the President or the
Secretary, respectively, may determine to be proper.
(e) Number of Awards.--No more than 1 Award may be conferred in any
year in each classification described in section 4307(b). If no
multinational company in such a classification meets the criteria of
section 4307(a) for a year, the President or the Secretary shall not
confer an Award in that classification for that year.
(f) Publicity Concerning Award or Certificate.--A multinational
company on which an Award or Certificate is conferred, and that agrees
to help other multinational companies improve their labor practices,
may publicize its receipt of the Award or Certificate, including using
the Award or Certificate in its advertising and marketing.
SEC. 4306. PROCEDURE AND ADMINISTRATION.
(a) Director.--The Director of the Office of International Economic
Affairs in the Bureau of International Labor Affairs of the Department
of Labor (referred to in this subtitle as the ``Director'') shall carry
out the administration of the Awards and Certificates pursuant to the
terms of this subtitle.
(b) Board.--
(1) Appointment.--The Director shall establish and appoint
the members of a Board of Global Worker Fairness (referred to
in this subtitle as the ``Board''), consisting of 1 expert from
each of the following fields:
(A) Business.
(B) Human rights.
(C) Government.
(D) Academia.
(E) Labor.
(2) Terms.--Members of the Board shall serve for a single
term of 3 years.
(3) Duties.--The Board shall advise the Director on the
administration of the Awards. The Board shall, by a \3/5\ vote
of the Board, recommend multinational companies to receive
Awards.
SEC. 4307. CRITERIA FOR ELIGIBILITY.
(a) Eligibility.--To be eligible to receive an Award under this
section, a multinational company--
(1) shall submit an application to the Director at such
time, in such manner, and containing--
(A) documentation and evidence demonstrating that
the criteria specified in paragraphs (2) through (5)
are satisfied;
(B) documentation of the number of workers employed
by the company, to assist the Director in making the
classification described in subsection (b); and
(C) such information as the Director may require,
in application specifications established and
disseminated by the Director;
(2) shall consent to a rigorous evaluation and audit of the
company's labor practices;
(3) shall be in compliance with the labor standards set
forth in each trade agreement to which the nation in which the
company employs workers is a party;
(4) shall be in compliance with the International Labour
Organization's core labor standards, including standards
pertaining to child labor, collective bargaining, prison and
compulsory labor, safety, and wages; and
(5) shall verify that, in each labor market in which the
company employs workers, the company pays wages and provides
benefits, as defined by the National Compensation Survey, above
the median level for like occupations in that market.
(b) Classification.--An applicant under subsection (a) shall be
classified as--
(1) a small employer of foreign labor of the company
employs not more than 100 workers in foreign countries;
(2) a medium employer of foreign labor if the company
employs not less than 101 and not more than 1000 workers in
foreign countries; or
(3) a large employer of foreign labor if the company
employs not less than 1001 workers in foreign countries.
(c) Documentation and Evidence.--All information submitted in an
application described in subsection (a) shall be subject to
verification through an audit authorized in subsection (a)(2). If the
Director finds that an applicant has knowingly provided false
information in such an application for a particular year the Director
shall disqualify the applicant from consideration for an Award for that
year and the 2 subsequent years.
(d) Selection of Applicants To Receive Awards and Certificates.--
(1) Awards.--The Secretary or the President shall confer an
Award on an applicant only if the applicant qualifies for an
Award under subsection (a) and only after reviewing the
recommendations of the Board under section 4306(b).
(2) Certificates.--The Secretary or the President shall
confer a Certificate on an applicant that qualifies for an
Award under subsection (a) but is not selected to receive an
Award under paragraph (1).
SEC. 4308. REPORTING REQUIREMENTS.
(a) Information to Applicants.--The Director shall ensure that all
applicants under section 4307(a) receive the complete results of their
audits under section 4307(a) as well as detailed explanations of
decisions regarding their applications. The Director shall also
provide, to all applicants and to other appropriate groups, information
about the Awards made to successful applicants.
(b) Report to Congress.--Not later than 3 years after the date of
enactment of this subtitle, the Director shall prepare and submit to
the President and the appropriate committees of Congress, a report on
the progress made through, and the findings and conclusions resulting
from, activities conducted pursuant to this subtitle, along with
recommendations for possible modifications of the subtitle.
TITLE V--HELPING WORKERS AND COMMUNITIES HARMED BY TRADE
Subtitle A--Wage Insurance Program and Improvement of Credit for Health
Insurance Costs for Eligible Individuals
SEC. 5101. WAGE INSURANCE FOR QUALIFYING DISPLACED WORKERS UPON
REEMPLOYMENT.
(a) In General.--Section 246 of the Trade Act of 1974 (19 U.S.C.
2318) is amended to read as follows:
``SEC. 246. WAGE INSURANCE FOR DISPLACED WORKERS.
``(a) In General.--
``(1) Establishment.--The Secretary shall establish a wage
insurance program for displaced workers that provides the
benefits described in paragraph (2).
``(2) Benefits.
``(A) Payments.--A State shall use the funds
provided to the State under section 241 to pay, for a
period not to exceed 2 years, to a worker described in
paragraph (3)(B), 50 percent of the difference
between--
``(i) the wages received by the worker from
reemployment; and
``(ii) the wages received by the worker at
the time of separation.
``(B) Health insurance.--A worker described in
paragraph (3)(B) participating in the program
established under paragraph (1) is eligible to receive,
for a period not to exceed 2 years, a credit for health
insurance costs under section 35 of the Internal
Revenue Code of 1986.
``(3) Eligibility.--
``(A) Firm eligibility.--
``(i) In general.--The Secretary shall
provide the opportunity for a group of workers
on whose behalf a petition is filed under
section 221 to request that the group of
workers be certified for the wage insurance
program under this section at the time the
petition is filed.
``(ii) Criteria.--In determining whether to
certify a group of workers as eligible for the
wage insurance program, the Secretary shall
consider the following criteria:
``(I) Whether the workers in the
workers' firm possess skills that are
not easily transferable.
``(II) The competitive conditions
within the workers' industry.
``(iii) Deadline.--The Secretary shall
determine whether the workers in the group are
eligible for the wage insurance program by the
date specified in section 223(a).
``(B) Individual eligibility.--A worker in the
group that the Secretary has certified as eligible for
the wage insurance program may elect to receive
benefits under the wage insurance program if the
worker--
``(i) is covered by a certification under
subchapter A of this chapter;
``(ii) obtains reemployment not more than
26 weeks after the date of separation from the
adversely affected employment; and
``(iii) is at least 50 years of age;
``(iv) is employed on a full-time basis as
defined by State law in the State in which the
worker is employed; and
``(v) does not return to the employment
from which the worker was separated.
``(4) Total amount of payments.--The payments described in
paragraph (2)(A) made to a worker may not exceed $20,000 per
worker during the 2-year eligibility period.
``(b) Limitation on Other Benefits.--
``(1) In general.--Except as provided in paragraph (2) and
subsection (a)(2)(B), if a worker is receiving payments
pursuant to the program established under subsection (a)(1),
the worker shall not be eligible to receive any other benefits
under this title.
``(2) Training services.--Notwithstanding subsection
(a)(1)(A) of section 236, a worker who is receiving payments
pursuant to the program established under subsection (a)(1) is
eligible to receive training under section 236 if the Secretary
determines that--
``(A) the provision of such training, consistent
with the worker's full-time employment, will assist the
worker in securing more suitable employment; and
``(B) the other requirements under subsection
(a)(1) of section 236 are met.''.
(b) Conforming Amendment.--The table of contents for title II of
the Trade Act of 1974 is amended by striking the item relating to
section 246 and inserting the following:
``Sec. 246. Wage insurance for displaced workers.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to workers certified as eligible for adjustment
assistance under chapter 2 of title II of the Trade Act of 1974
on or after the date of the enactment of this Act.
(2) Increased total amount of payments and training
services for individuals currently receiving payments.--
Subsections (a)(4) and (b)(2) of section 246 of the Trade Act
of 1974 (19 U.S.C. 2318), as amended by subsection (a), shall
apply with respect to a worker receiving payments under the
program under such section 246 on the day before the date of
the enactment of this Act for the duration of such worker's
eligibility period under such program.
SEC. 5102. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT FOR HEALTH
INSURANCE COSTS.
(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 greater of--
``(A) 95 percent of 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; and
``(B) an amount equal to the excess of--
``(i) 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
``(ii) an 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) 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)(1)(B)(ii) 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)(1)(B)(ii) 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)(1)(A) for the
taxable year and the amount described in subsection
(a)(1)(B), 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, 2005.
SEC. 5103. 100 PERCENT CREDIT AND PAYMENT FOR MONTHLY PREMIUMS PAID
PRIOR TO CERTIFICATION OF ELIGIBILITY FOR THE CREDIT.
(a) In General.--Subsection (a) of section 35 of the Internal
Revenue Code of 1986, as amended by section 5102(a)(1), is amended by
adding at the end the following new paragraph:
``(2) 100 percent credit for months prior to issuance of
eligibility certificate.--The amount allowed as a credit
against the tax imposed by subtitle A shall be equal to 100
percent in the case of the taxpayer's first eligible coverage
months occurring prior to the issuance of a qualified health
insurance costs credit eligibility certificate.''.
(b) Payment for Premiums Due Prior to Certification of Eligibility
for the Credit.--Section 7527 of the Internal Revenue Code of 1986
(relating to advance payment of credit for health insurance costs of
eligible individuals) is amended by adding at the end the following new
subsection:
``(e) Payment for Premiums Due Prior to Issuance of Certificate.--
The program established under subsection (a) shall provide--
``(1) that the Secretary shall make payments on behalf of a
certified individual of an amount equal to 100 percent of the
premiums for coverage of the taxpayer and qualifying family
members under qualified health insurance for eligible coverage
months (as defined in section 35(b)) occurring prior to the
issuance of a qualified health insurance costs credit
eligibility certificate; and
``(2) that any payments made under paragraph (1) shall not
be included in the gross income of the taxpayer on whose behalf
such payments were made.''.
(c) Effective Date.--The amendments made by this section shall
apply to months beginning after the date of the enactment of this Act
in taxable years ending after such date.
SEC. 5104. ELIGIBILITY FOR CERTAIN PENSION PLAN RECIPIENTS; PRESUMPTIVE
ELIGIBILITY.
(a) Eligibility for Certain Pension Plan Recipients.--Subsection
(c) of section 35 of the Internal Revenue Code of 1986 is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period and
inserting ``, and''; and
(C) by adding at the end the following:
``(D) an eligible multiemployer pension
participant.''; and
(2) by adding at the end the following new paragraph:
``(5) Eligible multiemployer pension recipient.--The term
`eligible multiemployer pension recipient' means, with respect
to any month, any individual--
``(A) who has attained age 55 as of the first day
of such month,
``(B) who is receiving a benefit from a
multiemployer plan (as defined in section 3(37)(A) of
the Employee Retirement Income Security Act of 1974),
and
``(C) whose former employer has withdrawn from such
multiemployer plan pursuant to section 4203(a) of such
Act.''.
(b) Presumptive Eligibility for Petitioners for Trade Adjustment
Assistance.--Subsection (c) of section 35 of the Internal Revenue Code
of 1986, as amended by subsection (a), is amended by adding at the end
the following new paragraph:
``(6) Presumptive status as a taa recipient.--The term
`eligible individual' shall include any individual who is
covered by a petition filed with the Secretary of Labor under
section 221 of the Trade Act of 1974. This paragraph shall
apply to any individual only with respect to months which--
``(A) end after the date that such petition is so
filed, and
``(B) begin before the earlier of--
``(i) the 90th day after the date of filing
of such petition, or
``(ii) the date on which the Secretary of
Labor makes a final determination with respect
to such petition.''.
(c) Conforming Amendments.--
(1) Paragraph (1) of section 7527(d) of such Code is
amended by striking ``or an eligible alternative TAA recipient
(as defined in section 35(c)(3))'' and inserting ``, an
eligible alternative TAA recipient (as defined in section
35(c)(3)), an eligible multiemployer pension recipient (as
defined in section 35(c)(5), or an individual who is an
eligible individual by reason of section 35(c)(6)''.
(2) Section 173(f)(4) of the Workforce Investment Act of
1998 (29 U.S.C. 2918(f)(4)) is amended--
(A) in subparagraph (B), by striking ``and'' at the
end; and
(B) by inserting after subparagraph (C), the
following new subparagraphs:
``(D) an eligible multiemployer pension recipient
(as defined in section 35(c)(5) of the Internal Revenue
Code of 1986), and
``(E) an individual who is an eligible individual
by reason of section 35(c)(6) of the Internal Revenue
Code of 1986,''.
(d) Technical Amendment Clarifying Eligibility of Certain Displaced
Workers Receiving a Benefit Under a Defined Benefit Pension Plan.--The
first sentence of section 35(c)(2) of the Internal Revenue Code of 1986
is amended by inserting before the period the following: ``, and shall
include any such individual who would be eligible to receive such an
allowance but for the fact that the individual is receiving a benefit
under a defined benefit plan (as defined in section 3(35) of the
Employee Retirement Income Security Act of 1974).''.
(e) Effective Date.--The amendments made by this section shall
apply to months beginning after the date of the enactment of this Act
in taxable years ending after such date.
SEC. 5105. CLARIFICATION OF 3-MONTH CREDITABLE COVERAGE REQUIREMENT.
(a) In General.--Clause (i) of section 35(e)(2)(B) of the Internal
Revenue Code of 1986 (defining qualifying individual) is amended by
inserting ``(prior to the employment separation necessary to attain the
status of an eligible individual)'' after ``9801(c)''.
(b) Conforming Amendment.--Section 173(f)(2)(B)(ii)(I) of the
Workforce Investment Act of 1998 (29 U.S.C. 2918(f)(2)(B)(ii)(I)) is
amended by inserting ``(prior to the employment separation necessary to
attain the status of an eligible individual)'' after ``1986''.
(c) Effective Date.--The amendments made by this section shall
apply to months beginning after the date of the enactment of this Act
in taxable years ending after such date.
SEC. 5106. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF
DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE
COVERAGE.
(a) ERISA Amendment.--Section 701(c)(2) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding
at the end the following new subparagraph:
``(C) TAA-eligible individuals.--
``(i) TAA pre-certification period rule.--
In the case of a TAA-eligible individual, the
period beginning on the date the individual has
a TAA-related loss of coverage and ending on
the date that is 5 days after the postmark date
of the notice by the Secretary (or by any
person or entity designated by the Secretary)
that the individual is eligible for a qualified
health insurance costs credit eligibility
certificate for purposes of section 7527 of the
Internal Revenue Code of 1986 shall not be
taken into account in determining the
continuous period under subparagraph (A).
``(ii) Definitions.--The terms `TAA-
eligible individual', and `TAA-related loss of
coverage' have the meanings given such terms in
section 605(b)(4).''.
(b) PHSA Amendment.--Section 2701(c)(2) of the Public Health
Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the
following new subparagraph:
``(C) TAA-eligible individuals.--
``(i) TAA pre-certification period rule.--
In the case of a TAA-eligible individual, the
period beginning on the date the individual has
a TAA-related loss of coverage and ending on
the date that is 5 days after the postmark date
of the notice by the Secretary (or by any
person or entity designated by the Secretary)
that the individual is eligible for a qualified
health insurance costs credit eligibility
certificate for purposes of section 7527 of the
Internal Revenue Code of 1986 shall not be
taken into account in determining the
continuous period under subparagraph (A).
``(ii) Definitions.--The terms `TAA-
eligible individual', and `TAA-related loss of
coverage' have the meanings given such terms in
section 2205(b)(4).''.
(c) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code
of 1986 (relating to not counting periods before significant breaks in
creditable coverage) is amended by adding at the end the following new
subparagraph:
``(D) TAA-eligible individuals.--
``(i) TAA pre-certification period rule.--
In the case of a TAA-eligible individual, the
period beginning on the date the individual has
a TAA-related loss of coverage and ending on
the date which is 5 days after the postmark
date of the notice by the Secretary (or by any
person or entity designated by the Secretary)
that the individual is eligible for a qualified
health insurance costs credit eligibility
certificate for purposes of section 7527 shall
not be taken into account in determining the
continuous period under subparagraph (A).
``(ii) Definitions.--The terms `TAA-
eligible individual', and `TAA-related loss of
coverage' have the meanings given such terms in
section 4980B(f)(5)(C)(iv).''.
(d) Effective Date.--The amendments made by this section shall
apply to months beginning after the date of the enactment of this Act
in taxable years ending after such date.
SEC. 5107. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN
EVENTS.
(a) In General.--Subsection (g) of section 35 of the Internal
Revenue Code of 1986, as amended by section 5102(b), is amended by
redesignating paragraph (10) as paragraph (11) and inserting after
paragraph (9) the following new paragraph:
``(10) Continued qualification of family members after
certain events.--
``(A) Eligible individual becomes medicare
eligible.--In the case of a month which would be an
eligible coverage month with respect to an eligible
individual but for subsection (f)(2)(A), such month
shall be treated as an eligible coverage month with
respect to any qualifying family member of such
eligible individual (but not with respect to such
eligible individual).
``(B) Divorce.--In the case of a month which would
be an eligible coverage month with respect to a former
spouse of a taxpayer but for the finalization of a
divorce between the spouse and the taxpayer that occurs
during the period in which the taxpayer is an eligible
individual, such month shall be treated as an eligible
coverage month with respect to such former spouse.
``(C) Death.--In the case of a month which would be
an eligible coverage month with respect to an eligible
individual but for the death of such individual, such
month shall be treated as an eligible coverage month
with respect to any qualifying family of such eligible
individual.''.
(b) Conforming Amendment.--Section 173(f) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the
end the following:
``(8) Continued qualification of family members after
certain events.--
``(A) Eligible individual becomes medicare
eligible.--In the case of a month which would be an
eligible coverage month with respect to an eligible
individual but for paragraph (7)(B)(i), such month
shall be treated as an eligible coverage month with
respect to any qualifying family member of such
eligible individual (but not with respect to such
eligible individual).
``(B) Divorce.--In the case of a month which would
be an eligible coverage month with respect to a former
spouse of a taxpayer but for the finalization of a
divorce between the spouse and the taxpayer that occurs
during the period in which the taxpayer is an eligible
individual, such month shall be treated as an eligible
coverage month with respect to such former spouse.
``(C) Death.--In the case of a month which would be
an eligible coverage month with respect to an eligible
individual but for the death of such individual, such
month shall be treated as an eligible coverage month
with respect to any qualifying family of such eligible
individual.
``(D) Definition.--In this paragraph, the term
`eligible coverage month' means any month if--
``(i) as of the first day of such month,
the taxpayer involved--
``(I) is an eligible individual;
``(II) is covered by qualified
health insurance, the premium for which
is paid by the taxpayer;
``(III) does not have other
specified coverage; and
``(IV) is not imprisoned under
Federal, State, or local authority; and
``(ii) such month begins more than 90 days
after the date of the enactment of the Trade
Act of 2002.''.
(c) Effective Date.--The amendments made by this section shall
apply to months beginning after the date of the enactment of this Act
in taxable years ending after such date.
SEC. 5108. OFFERING OF NATIONAL FALLBACK COVERAGE.
(a) Offering of National 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 under paragraph (1) shall be the same as
the terms and coverage offered under FEHBP, except that the
premium charged for such health benefit plans offered under
such paragraph--
(A) shall be equal to the full premium (including
both employer and beneficiary share) charged for such
coverage determined in the same manner, subject to
subparagraph (B), it is determined for full-time
employees; and
(B) shall be determined for the pool of individuals
covered under this subsection, separately from the pool
of individuals otherwise covered 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 this
subsection as may be appropriate to protect the interests of
individuals covered under FEHBP.
(4) FEHBP defined.--For purposes of this subsection, 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 inserting after subparagraph (J) the
following new subparagraph:
``(K) Coverage under a health benefits plan offered
under section 5108(a)(1) of Right Time to Reinvest in
America's Competitiveness and Knowledge Act.''.
(2) Section 173(f)(2)(A) of the Workforce Investment Act of
1998 (29 U.S.C. 2918(f)(2)(A)) is amended by inserting after
clause (x) the following new clause:
``(xi) Coverage under a health benefits
plan offered under section 5108(a)(1) of Right
Time to Reinvest in America's Competitiveness
and Knowledge Act.''.
SEC. 5109. ADDITIONAL REQUIREMENTS FOR INDIVIDUAL HEALTH INSURANCE
COSTS.
(a) In General.--Subparagraph (A) of section 35(e)(2) of the
Internal Revenue Code of 1986 is amended by striking ``subparagraphs
(B) through (H) of paragraph (1)'' and inserting ``paragraph (1) (other
than subparagraphs (A), (I), and (K) thereof)''.
(b) Rating System Requirement.--Subparagraph (J) of section
35(e)(1) of such Code is amended by adding at the end the following:
``For purposes of this subparagraph and clauses (ii), (iii), and (iv)
of subparagraph (F), such term does not include any insurance unless
the premiums for such insurance are restricted based on a community
rating system (determined other than on the basis of age).''.
(c) Clarification of Congressional Intent to Limit Use of
Individual Health Insurance Coverage Option.--Section 35(e)(1)(J)
(relating to qualified health insurance) is amended in the matter
preceding clause (i), by inserting ``, but only'' after ``coverage
under individual health insurance''.
(d) Conforming Amendments.--Section 173(f)(2) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(f)(2)) is amended--
(1) in subparagraph (A)(x)--
(A) in the matter preceding subclause (I), by
inserting ``, but only'' after ``under individual
health insurance'' the first place it appears; and
(B) by adding at the end the following: ``For
purposes of this clause, such term does not include any
insurance unless the premiums for such insurance are
restricted based on a community rating system
(determined other than on the basis of age).''; and
(2) in subparagraph (B)(i), by striking ``clauses (ii)
through (viii) of subparagraph (A)'' and inserting
``subparagraph (A) (other than clauses (i), (x), and (xi) of
such subparagraph)''.
SEC. 5110. ALIGNMENT OF COBRA COVERAGE WITH TAA PERIOD FOR TAA-ELIGIBLE
INDIVIDUALS.
(a) ERISA.--Section 605(b) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1165(b)) is amended--
(1) in the subsection heading, by inserting ``and
Coverage'' after ``Election''; and
(2) in paragraph (2)--
(A) in the paragraph heading, by inserting ``and
period'' after ``Commencement'';
(B) by striking ``and shall'' and inserting ``,
shall''; and
(C) by inserting ``, and in no event shall the
maximum period required under section 602(2)(A) be less
than the period during which the individual is a TAA-
eligible individual'' before the period at the end.
(b) Internal Revenue Code of 1986.--Section 4980B(f)(5)(C) of the
Internal Revenue Code of 1986 is amended--
(1) in the subparagraph heading, by inserting ``and
coverage'' after ``election''; and
(2) in clause (ii)--
(A) in the clause heading, by inserting ``and
period'' after ``Commencement'';
(B) by striking ``and shall'' and inserting ``,
shall''; and
(C) by inserting ``, and in no event shall the
maximum period required under paragraph (2)(B)(i) be
less than the period during which the individual is a
TAA-eligible individual'' before the period at the end.
(c) Public Health Service Act.--Section 2205(b) of the Public
Health Service Act (42 U.S.C. 300bb-5(b)) is amended--
(1) in the subsection heading, by inserting ``and
Coverage'' after ``Election''; and
(2) in paragraph (2)--
(A) in the paragraph heading, by inserting ``and
period'' after ``Commencement'';
(B) by striking ``and shall'' and inserting ``,
shall''; and
(C) by inserting ``, and in no event shall the
maximum period required under section 2202(2)(A) be
less than the period during which the individual is a
TAA-eligible individual'' before the period at the end.
SEC. 5111. NOTICE REQUIREMENTS.
Section 7527 of the Internal Revenue Code of 1986 (relating to
advance payment of credit for health insurance costs of eligible
individuals), as amended by section 5103(b), is amended by adding at
the end the following new subsection:
``(f) Inclusion of Certain Information.--The notice by the
Secretary (or by any person or entity designated by the Secretary) that
an individual is eligible for a qualified health insurance costs credit
eligibility certificate shall include--
``(1) the name, address, and telephone number of the State
office or offices responsible for determining that the
individual is eligible for such certificate and for providing
the individual with assistance with enrollment in qualified
health insurance (as defined in section 35(e)),
``(2) a list of the coverage options that are treated as
qualified health insurance (as so defined) by the State in
which the individual resides, and
``(3) in the case of a TAA-eligible individual (as defined
in section 4980B(f)(5)(C)(iv)(II)), a statement informing the
individual that the individual has 63 days from the date that
is 5 days after the postmark date of such notice to enroll in
such insurance without a lapse in creditable coverage (as
defined in section 9801(c)).''.
SEC. 5112. ANNUAL REPORT ON ENHANCED TAA BENEFITS.
Not later than October 1 of each year (beginning in 2007) the
Secretary of the Treasury, after consultation with the Secretary of
Labor, shall report to the Committee on Finance and the Committee on
Health, Education, Labor, and Pensions of the Senate and the Committee
on Ways and Means and the Committee on Education and the Workforce of
the House of Representatives the following information with respect to
the most recent taxable year ending before such date:
(1) The total number of participants utilizing the health
insurance tax credit under section 35 of the Internal Revenue
Code of 1986, including a measurement of such participants
identified--
(A) by State, and
(B) by coverage under COBRA continuation provisions
(as defined in section 9832(d)(1) of such Code) and by
non-COBRA coverage (further identified by group and
individual market).
(2) The range of monthly health insurance premiums offered
and the average and median monthly health insurance premiums
offered to TAA-eligible individuals (as defined in section
4980B(f)(5)(C)(iv)(II) of such Code) under COBRA continuation
provisions (as defined in section 9832(d)(1) of such Code),
State-based continuation coverage provided under a State law
that requires such coverage, and each category of coverage
described in section 35(e)(1) of such Code, identified by State
and by the actuarial value of such coverage and the specific
benefits provided and cost-sharing imposed under such coverage.
(3) The number of States applying for and receiving
national emergency grants under section 173(f) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(f)) and the time
necessary for application approval of such grants.
(4) The cost of administering the health credit program
under section 35 of such Code, by function, including the cost
of subcontractors.
SEC. 5113. EXTENSION OF NATIONAL EMERGENCY GRANTS.
(a) In General.--Section 173(f) of the Workforce Investment Act of
1998 (29 U.S.C. 2918(f)) is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) Use of funds.--
``(A) Health insurance coverage for eligible
individuals in order to obtain qualified health
insurance that has guaranteed issue and other consumer
protections.--Funds made available to a State or entity
under paragraph (4)(A) of subsection (a) shall be used
to provide an eligible individual and such individual's
qualifying family members with health insurance
coverage for the 3-month period that immediately
precedes the first eligible coverage month (as defined
in section 35(b) of the Internal Revenue Code of 1986)
in which such eligible individual and such individual's
qualifying family members are covered by qualified
health insurance that meets the requirements described
in clauses (i) through (iv) of section 35(e)(2)(A) of
the Internal Revenue Code of 1986 (or such longer
minimum period as is necessary in order for such
eligible individual and such individual's qualifying
family members to be covered by qualified health
insurance that meets such requirements).
``(B) Additional uses.--Funds made available to a
State or entity under paragraph (4)(A) of subsection
(a) may be used by the State or entity for the
following:
``(i) Health insurance coverage.--To assist
an eligible individual and such individual's
qualifying family members with enrolling in
health insurance coverage and qualified health
insurance or paying premiums for such coverage
or insurance.
``(ii) Administrative expenses and start-up
expenses to establish group health plan
coverage options for qualified health
insurance.--To pay the administrative expenses
related to the enrollment of eligible
individuals and such individuals' qualifying
family members in health insurance coverage and
qualified health insurance, including expenses
incurred for--
``(I) eligibility verification
activities;
``(II) the notification of eligible
individuals of available health
insurance and qualified health
insurance options;
``(III) processing qualified health
insurance costs credit eligibility
certificates provided for under section
7527 of the Internal Revenue Code of
1986;
``(IV) providing assistance to
eligible individuals in enrolling in
health insurance coverage and qualified
health insurance;
``(V) the development or
installation of necessary data
management systems; and
``(VI) any other activities
determined appropriate by the
Secretary, including start-up costs and
ongoing administrative expenses, in
order for the State to treat the
coverage described in subparagraph (C),
(D), (E), or (F)(i) of section 35(e)(1)
of the Internal Revenue Code of 1986,
or, only if the coverage is under a
group health plan, the coverage
described in subparagraph (F)(ii),
(F)(iii), (F)(iv), (G), or (H) of such
section, as qualified health insurance
under that section.
``(iii) Outreach.--To pay for outreach to
eligible individuals to inform such individuals
of available health insurance and qualified
health insurance options, including outreach
consisting of notice to eligible individuals of
such options made available after the date of
the enactment of this clause and direct
assistance to help potentially eligible
individuals and such individual's qualifying
family members qualify and remain eligible for
the credit established under section 35 of the
Internal Revenue Code of 1986 and advance
payment of such credit under section 7527 of
such Code.
``(iv) Bridge funding.--To assist
potentially eligible individuals to purchase
qualified health insurance coverage prior to
issuance of a qualified health insurance costs
credit eligibility certificate under section
7527 of the Internal Revenue Code of 1986 and
commencement of advance payment, and receipt of
expedited payment, under subsections (a) and
(e), respectively, of that section.
``(C) Rule of construction.--The inclusion of a
permitted use under this paragraph shall not be
construed as prohibiting a similar use of funds
permitted under subsection (g).''; and
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Qualified health insurance.--For purposes of this
subsection and subsection (g), the term `qualified health
insurance' has the meaning given that term in section 35(e) of
the Internal Revenue Code of 1986.''.
(b) Funding.--Section 174(c)(1) of the Workforce Investment Act of
1998 (29 U.S.C. 2919(c)(1)) is amended--
(1) in the paragraph heading, by striking ``Authorization
and appropriation for fiscal year 2002'' and inserting
``Appropriations''; and
(2) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) to carry out subsection (a)(4)(A) of section
173--
``(i) $10,000,000 for fiscal year 2002; and
``(ii) $300,000,000 for the period of
fiscal years 2007 through 2009; and''.
(c) Report Regarding Failure To Comply With Requirements for
Expedited Approval Procedures.--Section 173(f) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(f)), as amended by section
5107(b), is amended by adding at the end the following new paragraph:
``(9) Report for failure to comply with requirements for
expedited approval procedures.--If the Secretary fails to make
the notification required under clause (i) of paragraph (3)(A)
within the 15-day period required under that clause, or fails
to provide the technical assistance required under clause (ii)
of such paragraph within a timely manner so that a State or
entity may submit an approved application within 2 months of
the date on which the State or entity's previous application
was disapproved, the Secretary shall submit a report to
Congress explaining such failure.''.
(d) Technical Amendment.--Effective as if included in the enactment
of the Trade Act of 2002 (Public Law 107-210; 116 Stat. 933),
subsection (f) of section 203 of that Act is repealed.
Subtitle B--Modernization of Trade Adjustment Assistance
CHAPTER 1--SERVICE WORKERS AND FIRMS
SEC. 5211. SHORT TITLE.
This chapter may be cited as the ``Trade Adjustment Assistance
Equity for Service Workers Act of 2006''.
SEC. 5212. 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 ``for any fiscal year
shall not exceed $220,000,000.'' and inserting ``shall not exceed--
``(i) $440,000,000 in fiscal year 2007;
``(ii) $484,000,000 in fiscal year 2008;
``(iii) $528,000,000 in fiscal year 2009;
``(iv) $572,000,000 in fiscal year 2010;
``(v) $616,000,000 in fiscal year 2011; and
``(vi) $660,000,000 in fiscal year 2012.''.
(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. 5213. 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 to read as
follows:
``(b) There are authorized to be appropriated to the Secretary
$16,000,000 for each of the fiscal years 2003 through 2005, and
$32,000,000 for each of the fiscal years 2006 and 2007 to carry out the
Secretary's functions under this chapter in connection with furnishing
adjustment assistance to firms. Amounts appropriated under this
subsection shall remain available until expended.''.
(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. 5214. 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 2006, 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. 5215. EFFECTIVE DATE.
The amendments made by this chapter shall take effect on the date
of the enactment of this Act.
CHAPTER 2--EXPANDING TRADE ADJUSTMENT ASSISTANCE TO COVER ALL COUNTRIES
SEC. 5221. SHORT TITLE.
This chapter may be cited as the ``Workers Equity Act''.
SEC. 5222. SHIFTS IN PRODUCTION.
(a) In General.--Section 222(a)(2)(B)(ii)(II) of the Trade Act of
1974 (19 U.S.C. 2272(a)(2)(B)(ii)(II)) is amended by inserting before
the semicolon the following: ``or a country to which the United States
has extended permanent normal trade relations''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
CHAPTER 3--EXPANDING TRADE ADJUSTMENT ASSISTANCE TO COVER COMMUNITIES
SEC. 5231. PURPOSE.
The purpose of this chapter is to assist communities 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. 5232. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.
Chapter 4 of title II of the Trade Act of 1974 (19 U.S.C. 2371 et
seq.) is amended to read as follows:
``CHAPTER 4--COMMUNITY ECONOMIC ADJUSTMENT
``SEC. 271. DEFINITIONS.
``In this chapter:
``(1) Civilian labor force.--The term `civilian labor
force' has the meaning given that term in regulations
prescribed by the Secretary of Labor.
``(2) Community.--The term `community' means a county or
equivalent political subdivision of a State.
``(A) Rural community.--The term `rural community'
means a community that has a rural-urban continuum code
of 4 through 9.
``(B) Urban community.--The term `urban community'
means a community that has a rural-urban continuum code
of 0 through 3.
``(3) Community economic development coordinating
committee.--The term `Community Economic Development
Coordinating Committee' means a community group established
under section 274 that consists of major groups significantly
affected by an increase in imports or a shift in production,
including local, regional, tribal, and State governments,
regional councils of governments and economic development, and
business, labor, education, health, religious, and other
community-based organizations.
``(4) Director.--The term `Director' means the Director of
the Office of Community Trade Adjustment.
``(5) Eligible community.--The term `eligible community'
means a community certified under section 273 as eligible for
assistance under this chapter.
``(6) Job loss.--The term `job loss' means the total or
partial separation of an individual, as those terms are defined
in section 221.
``(7) Office.--The term `Office' means the Office of
Community Trade Adjustment established under section 272.
``(8) Rural-urban continuum code.--The term `rural-urban
continuum code' means a code assigned to a community according
to the rural-urban continuum code system, as defined by the
Economic Research Service of the Department of Agriculture.
``(9) Secretary.--The term `Secretary' means the Secretary
of Commerce.
``SEC. 272. OFFICE OF COMMUNITY TRADE ADJUSTMENT.
``(a) Establishment.--Within 6 months of the date of the enactment
of the Right Time to Reinvest in America's Competitiveness and
Knowledge Act, there shall be established in the Economic Development
Administration of the Department of Commerce an Office of Community
Trade Adjustment.
``(b) Personnel.--The Office shall be headed by a Director, and
shall have such staff as may be necessary to carry out the
responsibilities described in this chapter.
``(c) Coordination of Federal Response.--The Office shall--
``(1) provide leadership, support, and coordination for a
comprehensive management program to address economic
dislocation in eligible communities;
``(2) establish an easily accessible, one-stop
clearinghouse for States and eligible communities to obtain
information regarding economic development assistance available
under Federal law;
``(3) 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 community economic adjustment;
``(D) by identifying and strengthening existing
agency mechanisms designed to assist communities in
economic adjustment and workforce reemployment;
``(E) by applying consistent policies, practices,
and procedures in the administration of Federal
programs that are used to assist communities adversely
impacted by an increase in imports or a shift in
production;
``(F) by creating, maintaining, and using a uniform
economic database to analyze community adjustment
activities; and
``(G) by assigning a community economic adjustment
advisor to work with each eligible community;
``(4) provide comprehensive technical assistance to any
eligible community in the efforts of that community to--
``(A) identify serious economic problems in the
community that result from an increase in imports or
shift in production;
``(B) integrate the major groups and organizations
significantly affected by the economic adjustment;
``(C) organize a Community Economic Development
Coordinating Committee;
``(D) access Federal, State, and local resources
designed to assist in economic development and trade
adjustment assistance;
``(E) diversify and strengthen the community
economy; and
``(F) develop a community-based strategic plan to
address workforce dislocation and economic development;
``(5) establish specific criteria for submission and
evaluation of a strategic plan submitted under section 276(d);
``(6) administer the grant programs established under
sections 276 and 277; and
``(7) establish an interagency Trade Adjustment Assistance
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 Defense, 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, the Office of the United States
Trade Representative, and the National Economic Council.
``(d) Working Group.--The working group established under
subsection (c)(7) shall examine other options for addressing trade
impacts on communities, such as:
``(1) Seeking legislative language directing the Foreign
Trade Zone (`FTZ') Board to expedite consideration of FTZ
applications from communities or businesses that have been
found eligible for trade adjustment assistance.
``(2) Seeking legislative language to make new markets tax
credits available in communities impacted by trade.
``(3) Seeking legislative language to make work opportunity
tax credits available for hiring unemployed workers who are
certified eligible for trade adjustment assistance.
``(4) Examining ways to assist trade impacted rural
communities and industries take advantage of the Department of
Agriculture's rural development program.
``SEC. 273. NOTIFICATION AND CERTIFICATION AS AN ELIGIBLE COMMUNITY.
``(a) Notification.--The Secretary of Labor, not later than 15 days
after making a determination that a group of workers is eligible for
trade adjustment assistance under section 231, shall notify the
Governor of the State in which the community in which the worker's firm
is located and the Director, of the Secretary's determination.
``(b) Certification.--Not later than 30 days after notification by
the Secretary of Labor described in subsection (a), the Director shall
certify as eligible for assistance under this chapter a community in
which 1 of the following conditions applies:
``(1) Number of job losses.--The Director shall certify
that a community is eligible for assistance under this chapter
if--
``(A) in an urban community, at least 500 workers
have been certified for assistance under section 231 in
the most recent 36-month period preceding the date of
certification under this section for which data are
available; or
``(B) in a rural community, at least 300 workers
have been certified for assistance under section 231 in
the most recent 36-month period preceding the date of
certification under this section for which data are
available.
``(2) Percent of workforce unemployed.--The Director shall
certify that a community is eligible for assistance under this
chapter if the unemployment rate for the community is at least
1 percent greater than the national unemployment rate for the
most recent 12-month period for which data are available.
``(c) Notification to Eligible Communities.--Not later than 15 days
after the Director certifies a community as eligible under subsection
(b), the Director shall notify the community--
``(1) of its determination under subsection (b);
``(2) of the provisions of this chapter;
``(3) how to access the clearinghouse established under
section 272(c)(2); and
``(4) how to obtain technical assistance provided under
section 272(c)(4).
``SEC. 274. COMMUNITY ECONOMIC DEVELOPMENT COORDINATING COMMITTEE.
``(a) Establishment.--In order to apply for and receive benefits
under this chapter, an eligible community shall establish a Community
Economic Development Coordinating Committee certified by the Director
as meeting the requirements of subsection (b)(1).
``(b) Composition of the Committee.--
``(1) Local participation.--The Community Economic
Development Coordinating Committee established by an eligible
community under subsection (a) shall include representatives of
those groups significantly affected by economic dislocation,
such as local, regional, tribal, and State governments,
regional councils of governments and economic development,
business, labor, education, health organizations, religious,
and other community-based groups providing assistance to
workers, their families, and communities.
``(2) Federal participation.--Pursuant to section
275(b)(3), the community economic adjustment advisor, assigned
by the Director to assist an eligible community, shall serve as
an ex officio member of the Community Economic Development
Coordinating Committee, and shall arrange for participation by
representatives of other Federal agencies on that Committee as
necessary.
``(3) Existing organization.--An eligible community may
designate an existing organization in that community as the
Community Economic Development Coordinating Committee if that
organization meets the requirements of paragraph (1) for the
purposes of this chapter.
``(c) Duties.--The Community Economic Development Coordinating
Committee shall--
``(1) ascertain the severity of the community economic
adjustment required as a result of the increase in imports or
shift in production;
``(2) assess the capacity of the community to respond to
the required economic adjustment and the needs of the community
as it undertakes economic adjustment, taking into consideration
such factors as the number of jobs lost, the size of the
community, the diversity of industries, the skills of the labor
force, the condition of the current labor market, the
availability of financial resources, the quality and
availability of educational facilities, the adequacy and
availability of public services, and the existence of a basic
and advanced infrastructure in the community;
``(3) facilitate a dialogue between concerned interests in
the community, represent the impacted community, and ensure all
interests in the community work collaboratively toward
collective goals without duplication of effort or resources;
``(4) oversee the development of a strategic plan for
community economic development, taking into consideration the
factors mentioned under paragraph (2), and consistent with the
criteria established by the Secretary for the strategic plan
developed under section 276;
``(5) create an executive council of members of the
Community Economic Development Coordinating Committee, which
shall include representatives of labor, employers, and
community organizations, to promote the strategic plan within
the community and ensure coordination and cooperation among all
stakeholders;
``(6) apply for any grant, loan, or loan guarantee
available under Federal law to develop or implement the
strategic plan, and be an eligible recipient for funding for
economic adjustment for that community; and
``(7) assess the impact on public services in the community
as a result of economic dislocation.
``SEC. 275. COMMUNITY ECONOMIC ADJUSTMENT ADVISORS.
``(a) In General.--Pursuant to section 272(c)(3)(G), the Director
shall assign a community economic adjustment advisor to each eligible
community.
``(b) Duties.--The community economic adjustment advisor shall--
``(1) provide technical assistance to the eligible
community, assist in the development and implementation of a
strategic plan, including applying for any grant available
under this or any other Federal law to develop or implement
that plan;
``(2) at the local and regional level, coordinate the
response of all Federal agencies offering assistance to the
eligible community;
``(3) serve as an ex officio member of the Community
Economic Development Coordinating Committee established by an
eligible community under section 274;
``(4) act as liaison between the Community Economic
Development Coordinating Committee established by the eligible
community and all other Federal agencies that offer assistance
to eligible communities, including the Department of
Agriculture, the Department of Defense, 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 National Economic Council, and other offices or agencies
of the Department of Commerce;
``(5) report regularly to the Director regarding the
progress of development activities in the community to which
the community economic adjustment advisor is assigned; and
``(6) perform other duties as directed by the Secretary or
the Director.
``SEC. 276. STRATEGIC PLANS.
``(a) In General.--With the assistance of the community economic
adjustment advisor, 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, the anticipated management structure of the Community
Economic Development Coordinating Committee, and the commitment
of the community to the strategic plan over the long term.
``(2) A description of, and a plan to accomplish, the
projects to be undertaken by the eligible community.
``(3) 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.
``(4) A description of any alternative development plans
that were considered, particularly less costly alternatives,
and why those plans were rejected in favor of the proposed
plan.
``(5) A description of any additional steps the eligible
community will take to achieve economic adjustment and
diversification, including how the plan and the projects will
contribute to establishing or maintaining a level of public
services necessary to attract and retain economic investment.
``(6) A description and justification for the cost and
timing of proposed basic and advanced infrastructure
improvements in the eligible community.
``(7) A description of the occupational and workforce
conditions in the eligible community, including but not limited
to existing levels of workforce skills and competencies, and
educational programs available for workforce training and
future employment needs.
``(8) A description of how the plan will adapt to changing
markets, business cycles, and other variables.
``(9) A graduation strategy through which the eligible
community demonstrates that the community will terminate the
need for Federal assistance.
``(10) A description of the ways in which the community
will support labor-management partnerships.
``(11) A description of the strategies that will be used to
support a level of public service needed to attract and retain
investment.
``(12) A description of ways in which the community will
support labor-management partnerships.
``(13) A description of the strategies that will be used to
support a level of public service needed to retain and attract
investment.
``(c) Grants To Develop Strategic Plans.--
``(1) In general.--The Director, upon receipt of an
application from a Community Economic Development Coordinating
Committee on behalf of an eligible community, shall award a
grant to that community to be used to develop the strategic
plan.
``(2) Amount.--The amount of a grant made under paragraph
(1) shall be determined by the Secretary, but may not exceed
$50,000 to each community.
``(3) Limit.--Each community can only receive 1 grant under
this subsection for the purpose of developing a strategic plan
in any 5-year period.
``(d) Submission of Plan.--A strategic plan developed under
subsection (a) shall be submitted to the Director for evaluation and
approval.
``SEC. 277. GRANTS FOR ECONOMIC DEVELOPMENT.
``The Director, upon receipt of an application from the Community
Economic Development Coordinating Committee on behalf of an eligible
community, may award a grant to that community to carry out any project
or program included in the strategic plan approved under section 276(d)
that--
``(1) will be located in, or will create or preserve high-
wage jobs, in that eligible community;
``(2) implements the strategy of that eligible community to
create high-wage jobs in sectors that are expected to expand,
including projects that--
``(A) encourage industries to locate in that
eligible community, if such funds are not used to
encourage the relocation of any employer in a manner
that causes the dislocation of employees of that
employer at another facility in the United States;
``(B) leverage resources to create or improve
Internet or telecommunications capabilities to make the
community more attractive for business;
``(C) establish a funding pool for job creation
through entrepreneurial activities;
``(D) assist existing firms in that community to
restructure or retool to become more competitive in
world markets and prevent job loss; or
``(E) assist the community in acquiring the
resources and providing the level of public services
necessary to meet the objectives set out in the
strategic plan;
``(3) gives priority to community efforts that support
labor-management partnerships and regional and sectoral
strategies for skill development and job creation; and
``(4) assists and supports a level of public service needed
to attract and retain investment.
``SEC. 278. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Department of
Commerce, for the period beginning on October 1, 2006 and ending
September 30, 2016 such sums as may be necessary to carry out the
purposes of this chapter.
``SEC. 279. GENERAL PROVISIONS.
``(a) Report by the Director.--Not later than 6 months after the
date of the enactment of the Right Time to Reinvest in America's
Competitiveness and Knowledge Act, and annually thereafter, the
Director shall submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives a report
regarding the programs established under this chapter.
``(b) Regulations.--The Secretary shall prescribe such regulations
as are necessary to carry out the provisions of this chapter.
``(c) 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.''.
SEC. 5233. 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:
``(3) Assistance for communities.--Technical assistance and
other payments may not be provided under chapter 4 after
September 30, 2016.''.
SEC. 5234. CONFORMING AMENDMENTS.
The table of contents for chapter 4 of title II of the Trade Act of
1974 is amended to read as follows:
``Chapter 4--Community Economic Adjustment
``Sec. 271. Definitions.
``Sec. 272. Office of Community Trade Adjustment.
``Sec. 273. Notification and certification as an eligible
community.
``Sec. 274. Community Economic Development Coordinating
Committee.
``Sec. 275. Community economic adjustment advisors.
``Sec. 276. Strategic plans.
``Sec. 277. Grants for economic development.
``Sec. 278. Authorization of appropriations.
``Sec. 279. General provisions.''.
CHAPTER 4--AGREEMENTS WITH STATES
SEC. 5241. AGREEMENTS WITH STATES.
Section 239(a) of the Trade Act of 1974 (19 U.S.C. 2311(a)) is
amended by striking ``and (4)'' and inserting ``(4) will use personnel
standards on a merit basis in the administration of services and
payment of benefits to adversely affected workers under this chapter,
and (5)''.
TITLE VI--MODERNIZATION OF LABOR AND EMPLOYMENT LAWS
Subtitle A--Protecting Workers' Right To Organize
SEC. 6101. SHORT TITLE.
This subtitle may be cited as the ``Employee Free Choice Act''.
SEC. 6102. STREAMLINING UNION CERTIFICATION.
(a) In General.--Section 9(c) of the National Labor Relations Act
(29 U.S.C. 159(c)) is amended by adding at the end the following:
``(6) Notwithstanding any other provision of this section, whenever
a petition shall have been filed by an employee or group of employees
or any individual or labor organization acting in their behalf alleging
that a majority of employees in a unit appropriate for the purposes of
collective bargaining wish to be represented by an individual or labor
organization for such purposes, the Board shall investigate the
petition. If the Board finds that a majority of the employees in a unit
appropriate for bargaining has signed authorizations designating the
individual or labor organization specified in the petition as their
bargaining representative and that no other individual or labor
organization is currently certified or recognized as the exclusive
representative of any of the employees in the unit, the Board shall not
direct an election but shall certify the individual or labor
organization as the representative described in subsection (a).
``(7) The Board shall develop guidelines and procedures for the
designation by employees of a bargaining representative in the manner
described in paragraph (6). Such guidelines and procedures shall
include--
``(A) model collective bargaining authorization language
that may be used for purposes of making the designations
described in paragraph (6); and
``(B) procedures to be used by the Board to establish the
authenticity of signed authorizations designating bargaining
representatives.''.
(b) Conforming Amendments.--
(1) National labor relations board.--Section 3(b) of the
National Labor Relations Act (29 U.S.C. 153(b)) is amended, in
the second sentence--
(A) by striking ``and to'' and inserting ``to'';
and
(B) by striking ``and certify the results
thereof,'' and inserting ``, and to issue
certifications as provided for in that section,''.
(2) Unfair labor practices.--Section 8(b) of the National
Labor Relations Act (29 U.S.C. 158(b)) is amended--
(A) in paragraph (7)(B), by striking ``, or'' and
inserting ``or a petition has been filed under section
9(c)(6), or''; and
(B) in paragraph (7)(C), by striking ``when such a
petition has been filed'' and inserting ``when such a
petition other than a petition under section 9(c)(6)
has been filed''.
SEC. 6103. FACILITATING INITIAL COLLECTIVE BARGAINING AGREEMENTS.
Section 8 of the National Labor Relations Act (29 U.S.C. 158) is
amended by adding at the end the following:
``(h) Whenever collective bargaining is for the purpose of
establishing an initial agreement following certification or
recognition, the provisions of subsection (d) shall be modified as
follows:
``(1) Not later than 10 days after receiving a written
request for collective bargaining from an individual or labor
organization that has been newly organized or certified as a
representative as defined in section 9(a), or within such
further period as the parties agree upon, the parties shall
meet and commence to bargain collectively and shall make every
reasonable effort to conclude and sign a collective bargaining
agreement.
``(2) If after the expiration of the 90-day period
beginning on the date on which bargaining is commenced, or such
additional period as the parties may agree upon, the parties
have failed to reach an agreement, either party may notify the
Federal Mediation and Conciliation Service of the existence of
a dispute and request mediation. Whenever such a request is
received, it shall be the duty of the Service promptly to put
itself in communication with the parties and to use its best efforts,
by mediation and conciliation, to bring them to agreement.
``(3) If after the expiration of the 30-day period
beginning on the date on which the request for mediation is
made under paragraph (2), or such additional period as the
parties may agree upon, the Service is not able to bring the
parties to agreement by conciliation, the Service shall refer
the dispute to an arbitration board established in accordance
with such regulations as may be prescribed by the Service. The
arbitration panel shall render a decision settling the dispute
and such decision shall be binding upon the parties for a
period of 2 years, unless amended during such period by written
consent of the parties.''.
SEC. 6104. STRENGTHENING ENFORCEMENT.
(a) Injunctions Against Unfair Labor Practices During Organizing
Drives.--
(1) In general.--Section 10(l) of the National Labor
Relations Act (29 U.S.C. 160(l)) is amended--
(1) in the second sentence, by striking ``If, after such''
and inserting the following:
``(2) If, after such''; and
(2) by striking the first sentence and inserting the
following:
``(1) Whenever it is charged--
``(A) that any employer--
``(i) discharged or otherwise discriminated against
an employee in violation of subsection (a)(3) of
section 8;
``(ii) threatened to discharge or to otherwise
discriminate against an employee in violation of
subsection (a)(1) of section 8; or
``(iii) engaged in any other unfair labor practice
within the meaning of subsection (a)(1) that
significantly interferes with, restrains, or coerces
employees in the exercise of the rights guaranteed in
section 7;
while employees of that employer were seeking representation by
a labor organization or during the period after a labor
organization was recognized as a representative defined in
section 9(a) until the first collective bargaining contract is
entered into between the employer and the representative; or
``(B) that any person has engaged in an unfair labor
practice within the meaning of subparagraph (A), (B), or (C) of
section 8(b)(4), section 8(e), or section 8(b)(7);
the preliminary investigation of such charge shall be made forthwith
and given priority over all other cases except cases of like character
in the office where it is filed or to which it is referred.''.
(2) Conforming amendment.--Section 10(m) of the National
Labor Relations (29 U.S.C. 160(m)) is amended by inserting
``under circumstances not subject to section 10(l)'' after
``section 8''.
(b) Remedies for Violations.--
(1) Backpay.--Section 10(c) of the National Labor Relations
Act (29 U.S.C. 160(c)) is amended by striking ``And provided
further,'' and inserting ``Provided further, That if the Board
finds that an employer has discriminated against an employee in
violation of subsection (a)(3) of section 8 while employees of
the employer were seeking representation by a labor
organization, or during the period after a labor organization
was recognized as a representative defined in subsection (a) of
section 9 until the first collective bargaining contract was
entered into between the employer and the representative, the
Board in such order shall award the employee back pay and, in
addition, 2 times that amount as liquidated damages: Provided
further,''.
(2) Civil penalties.--Section 12 of the National Labor
Relations Act (29 U.S.C. 162) is amended--
(A) by striking ``Any'' and inserting ``(a) Any'';
and
(B) by adding at the end the following:
``(b) Any employer who willfully or repeatedly commits any unfair
labor practice within the meaning of subsection (a)(1) or (a)(3) of
section 8 while employees of the employer are seeking representation by
a labor organization or during the period after a labor organization
has been recognized as a representative defined in subsection (a) of
section 9 until the first collective bargaining contract is entered
into between the employer and the representative shall, in addition to
any make-whole remedy ordered, be subject to a civil penalty of not to
exceed $20,000 for each violation. In determining the amount of any
penalty under this section, the Board shall consider the gravity of the
unfair labor practice and the impact of the unfair labor practice on
the charging party, on other persons seeking to exercise rights
guaranteed by this Act, or on the public interest.''.
Subtitle B--Raising the Federal Minimum Wage
SEC. 6201. SHORT TITLE.
This subtitle may be cited as the ``Fair Minimum Wage Act of
2006''.
SEC. 6202. 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 2006;
``(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.
SEC. 6203. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH OF THE
NORTHERN MARIANA ISLANDS.
(a) In General.--Section 6 of the Fair Labor Standards Act of 1938
(29 U.S.C. 206) shall apply to the Commonwealth of the Northern Mariana
Islands.
(b) Transition.--Notwithstanding subsection (a), the minimum wage
applicable to the Commonwealth of the Northern Mariana Islands under
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C.
206(a)(1)) shall be--
(1) $3.55 an hour, beginning on the 60th day after the date
of enactment of this Act; and
(2) increased by $0.50 an hour (or such lesser amount as
may be necessary to equal the minimum wage under such section
6(a)(1)), beginning 6 months after the date of enactment of
this Act and every 6 months thereafter until the minimum wage
applicable to the Commonwealth of the Northern Mariana Islands
under this subsection is equal to the minimum wage set forth in
such section.
Subtitle C--Modernization of Unemployment Insurance
CHAPTER 1--IMPROVEMENTS IN REGULAR UNEMPLOYMENT COMPENSATION
SEC. 6311. PART-TIME AND LOW-WAGE WORKERS.
Section 3304(a) of the Internal Revenue Code of 1986 (relating to
requirements for State unemployment compensation laws) is amended--
(1) in paragraph (18), by striking ``and'' at the end;
(2) by redesignating paragraph (19) as paragraph (21); and
(3) by inserting after paragraph (18) the following new
paragraphs:
``(19) in the case of an individual who is not eligible for
regular compensation under the State law because such
individual does not meet requirements relating to availability
for work, active search for work, or refusal to accept work,
because such individual is seeking, or is available for, less
than full-time work, compensation is not denied by such State
to an otherwise eligible individual who seeks less than full-
time work or fails to accept full-time work;
``(20) in the case of an individual who is not eligible for
regular compensation under the State law because of the use of
a definition of base period that does not count wages earned in
the most recently completed calendar quarter, eligibility for
compensation is determined by applying a base period ending at
the close of the most recently completed calendar quarter;
and''.
SEC. 6312. NO REDUCTION IN UNEMPLOYMENT COMPENSATION AS A RESULT OF
PENSION ROLLOVERS.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986 (relating to requirements for State unemployment compensation
laws) is amended by adding at the end the following new flush sentence:
``Compensation shall not be reduced under paragraph (15) for any
pension, retirement or retired pay, annuity, or similar payment which
is not includible in gross income of the individual for the taxable
year in which paid because it was part of a rollover distribution.''
CHAPTER 2--IMPROVEMENTS TO THE FEDERAL-STATE EXTENDED UNEMPLOYMENT
COMPENSATION PROGRAM
SEC. 6321. LOWERING OF EXTENDED BENEFIT ``ON'' INDICATOR.
(a) Regular Triggers.--Section 203(d) of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in paragraph (1)(B), by striking ``5 per centum'' and
inserting ``4 percent''; and
(2) in the matter following paragraph (2), by striking
``the figure `5' contained in subparagraph (B) thereof were
`6';'' and inserting ``the figure `4' contained in subparagraph
(B) thereof were `5';''.
(b) Additional Trigger.--Section 203(f)(1) of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in the matter preceding subparagraph (A), by striking
``Effective with respect to compensation for weeks of
unemployment beginning after March 6, 1993, the State may by
law provide that for purposes of beginning or ending any
extended benefit period under this section'' and inserting
``Each State shall by law provide that for purposes of
beginning or ending any extended benefit period under this
section''; and
(2) in subparagraph (A)(i), by striking ``6.5'' and
inserting ``6''.
(c) High Unemployment Period Trigger.--Section 202(b)(3)(B) of the
Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended by striking ``substituting `8 percent' for `6.5
percent'.'' and inserting ``substituting `7.5 percent' for `6
percent'.''
(d) Conforming and Technical Amendments.--
(1) The matter following paragraph (2) of section 203(d) of
the Federal-State Extended Unemployment Compensation Act of
1970 (26 U.S.C. 3304 note) is amended by striking ``Effective
with respect to compensation for weeks of unemployment
beginning after March 30, 1977 (or, if later, the date
established pursuant to State law), the State'' and inserting
``A State''.
(2) Section 207 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) is repealed.
(3) The heading of subsection (f) of section 203 of the
Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note) is amended to read as follows:
``Additional Trigger''.
SEC. 6322. REVISION OF DEFINITION OF RATE OF INSURED UNEMPLOYMENT.
(a) In General.--Section 203(e)(1) of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended
by adding at the end the following new paragraph:
``(3) Notwithstanding paragraph (1), the term `rate of
insured unemployment' shall have the meaning given that term
under paragraph (1), except that each individual exhausting the
right of such individual to regular compensation during the
most recent 3 calendar months for which data are available
before the close of the period for which such rate is being
determined shall be taken into account as if each such
individual was filing a claim for regular compensation for each
week during the period for which such rate is being
determined.''.
SEC. 6323. REPEAL OF CERTAIN STATE LAW EXTENDED BENEFIT REQUIREMENTS.
(a) In General.--Section 202 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in subsection (a), by striking paragraphs (3) through
(7); and
(2) by striking subsection (c).
(b) Conforming Amendment.--Paragraph (4) of section 231(a) of the
Trade Act of 1974 (19 U.S.C. 2291(a)(4)) is repealed.
CHAPTER 3--EFFECTIVE DATE
SEC. 6331. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), the
amendments made by this subtitle shall apply in the case of
compensation paid for weeks beginning on or after the expiration of 180
days from the date of enactment of this Act.
(b) Extension of Effective Date for State Law Amendment.--
(1) In general.--If the Secretary of Labor identifies a
State as requiring a change to its statutes or regulations in
order to comply with the amendments made by this subtitle, such
amendments shall apply in the case of compensation paid for
weeks beginning after the earlier of--
(A) the date the State changes its statutes or
regulations in order to comply with such amendments; or
(B) the end of the first session of the State
legislature which begins after the date of enactment of
this Act or which began prior to such date and remained
in session for at least 25 calendar days after such
date;
except that in no case shall such amendments apply
before the date that is 180 days after the date of
enactment of this Act.
(2) Session defined.--In this subsection, the term
``session'' means a regular, special, budget, or other session
of a State legislature.
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