Trade Development Investment Act

Trade Development Investment Act - Sets forth provisions to improve the competitiveness of the United States in international trade by increasing the public investment in education and training.

Title I: Trade Development Investment Trust Fund - Subtitle A: Trade Development Investment Trust Fund - Establishes the Trade Development Investment Trust Fund (the Fund).

Transfers to the Fund amounts received under an import surcharge established by this Act.

Subtitle B: Allocation of Trust Fund - Directs the Secretary of the Treasury to make allocations from the Fund to carry out specified provisions of this Act for FY 1988 and fiscal years thereafter.

Sets forth provisions for ratable reductions and limitations on such allocations.

Title II: Investments in Education - Subtitle A: Elementary and Secondary Education - Part I: Vocational Education - Provides for annual transfers from the Fund to the appropriation under provisions of the Carl D. Perkins Vocational Act for: (1) adult training, retraining, and employment development; and (2) industry-education partnership for training in high-technology occupations.

Part 2: Mathematics, Sciences, Foreign Language, and Computer Literacy - Provides for annual transfers from the Fund to the appropriation under specified provisions of the Education for Economic Security Act relating to mathematics, sciences, foreign language, and computer literacy (through improvement of teachers and instruction in such fields, teacher institutes, and materials development).

Part 3: Gifted and Talented Children and Youth - Gifted and Talented Children and Youth Education Act of 1986 - Establishes a Federal gifted and talented education (GTE) program to improve the capability of State and local education agencies (SEAs and LEAs) and private nonprofit schools to: (1) identify gifted and talented children and youth; and (2) provide those children and youth with appropriate educational opportunities.

Directs the Secretary of Education, from specified sums transferred from the Fund under this Act and after consultation with the advisory committee established by this Act, to make grants to or contracts with SEAs, LEAs, institutions of higher education, or other public and private agencies to assist them in carrying out authorized GTE programs or projects, including personnel or supervisory training.

Sets forth authorized GTE programs and projects, including: (1) preservice and inservice training (including fellowships) for GTE personnel (including leadership personnel); (2) model projects and exemplary programs for identification and education, including summer programs and cooperative programs involving business, industry, and education; (3) strengthening SEA and higher education institutions' capability to provide leadership and assistance to LEAs and nonprofit private schools in planning, operating, and improving such programs; (4) technical assistance and information dissemination; (5) research on methods and techniques for identifying and teaching gifted and talented children and youth; (6) conducting program evaluations and surveys; and (7) developing information and analysis.

Establishes the National Center for Research and Development in the Education of Gifted and Talented Children and Youth (the National Center) through grants or contracts with one or more higher education institutions or SEAs, or a consortium or combination of such institutions and agencies, to carry out clauses (5), (6), and (7) of the preceding paragraph. Requires the Director of the National Center to carry out such National Center functions as may be agreed upon through arrangements with other higher education institutions, SEAs, LEAs, or other public or private agencies and organizations. Limits to 30 percent of the funds for authorized programs and projects that portion which may be used to conduct activities pursuant to provisions relating to the National Center and its research, evaluation, and information functions.

Directs the Secretary and the advisory committee established by this Act, in administering this Act, to give highest priority to programs for: (1) identifying and educating gifted and talented children and youth who may not be identified through traditional assessment measures (such as the limited-English speaking, economically disadvantaged, handicapped, and women); and (2) developing or improving the capability of schools in an entire State or region of the Nation, through cooperative efforts and participation of SEAs, LEAs, higher education institutions, and other public and private agencies and organizations (including business, industry, and labor) to identify and educate gifted and talented children and youth.

Sets forth provisions relating to participation of private school children and teachers in programs under this Act.

Directs the Secretary to appoint an advisory committee on GTE, with members representative of State education agencies, teacher education institutions, researchers, teachers, and parents.

Directs the Secretary to establish or designate an administrative unit within the Department of Education to: (1) administer the programs authorized by this Act; (2) coordinate all GTE programs that the Department administers; and (3) serve as a focal point for national leadership and information on the educational needs of gifted and talented children and youth and the availability of services and programs to meet those needs. Requires that such administrative unit be headed by a person of recognized professional qualifications and experience in GTE.

Part 4: Adult Education - Provides for annual transfers from the Fund to the appropriation for the Adult Education Act.

Subtitle B: Postsecondary Education - Part I: Replacement and Modernization of College Research Facilities - University Research Facilities Revitalization Act of 1986 - Requires each of the major Federal research and development agencies to establish and carry out a new university research laboratory modernization program, under which an amount equal to a specified portion of the funds available to the agency involved for research and development awards to institutions of higher education will be reserved for the replacement or modernization of such institutions' obsolete laboratories and other research facilities.

Requires that funds under such program be awarded in response to specific proposals submitted by universities and colleges, in accordance with regulations prescribed by the head of the agency involved. Requires that such regulations provide that funds to carry out the program be awarded on a competitive basis and in an amount not exceeding 50 percent of the cost of the replacement or modernization involved.

Sets forth required criteria for the award of such funds.

Sets forth provisions for equalization of Federal funds in the awarding process under this part.

Defines the "major Federal research and development agencies" as: (1) the National Science Foundation; (2) the Department of Health and Human Services; (3) the Department of Defense; (4) the Department of Energy; (5) the National Aeronautics and Space Administration; and (6) the Department of Agriculture.

Provides for annual transfers from the Fund for allocations to each of the above-named major Federal research and development agencies.

Authorizes the National Science Foundation (NSF) to design, establish, and maintain a data collection and analysis capability to identify and assess the research facilities needs of universities and colleges. Directs NSF, in conjunction with other appropriate Federal agencies, to: (1) conduct biennial surveys for such identification and assessment purposes; and (2) report the results to the Congress, with the first such report to be due on September 1, 1987. Directs the NSF, when conducting such surveys and reporting to the Congress, to also collect and assess data on the implementation of the university research laboratory modernization programs being carried out under this Act.

Part 2: Economic Development - National Higher Education and Economic Development Act of 1986 - Allows an eligible institution (as defined under specified provisions of the Higher Education Act of 1965) or consortium of institutions to apply for assistance under this Act to support one or more of the following: (1) planning and research (including applied research) to solve local economic development problems and to complement local initiatives to promote growth and improve productivity; (2) resource exchange to encourage the exchange of faculty, government, and business experts to support economic development; and (3) special projects for economic or national economic development which are innovative in approach and hold promise of application beyond the area served. Includes among such special projects which may be supported: (1) applying technology research to manufacturing aspects of mature industries in a region or State; (2) designing and developing university-based technical assistance centers to provide an integrated program of education, research, and technology transfer to business and industry; (3) projects to support entrepreneurship training and technical assistance; and (4) projects to develop new approaches or complement efforts to explore, expand, and foster opportunities for international business and trade.

Authorizes the Secretary of Education (the Secretary) to make a limited number of grants (in addition to the other assistance for allowable activities under this Act) to identify and disseminate effective models and techniques which use partnerships of postsecondary education institutions and others involved in economic development to support lasting economic improvement.

Limits the maximum amount of any planning and research and/or resource exchange grant to a single eligible institution (but not to a consortium) under this Act.

Sets forth conditions for eligibility for planning and research, resource exchange, or special project grants under this Act. Requires the eligible institution (or consortium of such institutions) to demonstrate in its application that the program to be supported will involve active participation and commitment of resources and personnel by one or more of the following organizations: (1) local and State governments; (2) business or industry; (3) labor unions or union representatives; or (4) nonprofit organizations concerned with economic development in the area to be served. Sets forth other application requirements, including applicant descriptions of: (1) how the plan fits into the overall economic development and/or redevelopment plan for the area to be served, contributes to long-term economic growth and employment opportunities, and furthers the goals of the postsecondary education institutions; and (2) the consultation and, if appropriate, coordination with other Federal and State economic development efforts such as the Job Training Partnership Act and Department of Commerce programs. Authorizes the Secretary to waive a certain matching contribution requirement for the applicant and other participating organizations with respect to an eligible institution that demonstrates a unique hardship that precludes compliance with such requirement.

Sets forth provisions for selection of grant recipients. Directs the Secretary to designate a peer review panel of experts in the field of higher education and economic development to review applications and make recommendations for funding to the Secretary. Requires the Secretary, in selecting the panel, to consult with other appropriate Cabinet-level officials and non-Federal organizations to ensure that the panel will be geographically balanced and composed of representatives from public and private higher education, labor, business, and State and local government who have expertise in the area of economic development.

Allows grants under this Act to be made on a multiyear basis, but prohibits any institution, individually or as a participant in a combination of such institutions, from receiving such a grant for more than five years.

Requires the Secretary, in making awards for activities under planning and research and/or resource sharing grants, to give special consideration to applications which: (1) propose to serve an area with an unemployment rate one percent above the national rate or an area which has experienced or is about to experience sudden economic dislocation resulting in significant job loss in terms of numbers of jobs eliminated and effect upon the area's employment rate; (2) are submitted by a consortia of postsecondary education institutions (including four- and two-year or public and private postsecondary education institutions), and provide a regional geographic approach to solving economic development problems; (3) develop approaches which promote economic diversification for rural areas; and (4) involve in the proposed activities several of the other types of organizations described under eligibility provisions.

Provides for annual transfers from the Fund for allocations for purposes of this part. Allocates 75 percent of such funds for regular grants and 25 percent for special project and dissemination grants.

Subtitle C: Graduate Education - Part 1: Graduate Assistance in Areas of National Need - Amends title IX (Graduate Programs) of the Higher Education Act of 1965 (the Act) to create a new part D program of graduate assistance in areas of national need.

Directs the Secretary of Education to make grants to academic departments and programs and other academic units of institutions of higher education for graduate fellowships in selected areas of study for graduate students who: (1) demonstrate financial need and academic ability; (2) plan teaching or research careers; and (3) pursue the highest degree available in their area of study.

Makes the principal criterion for the allocation of such grant awards the relative quality of the graduate programs in competing applications. Directs the Secretary, consistent with such principal criterion for allocation, to promote an equitable distribution of such awards among geographic areas and among eligible public and private institutions.

Directs the Secretary to approve such a grant recipient for a three-year period. Limits the amount per fiscal year of such a grant to any academic department or program of an institution of higher education to a minimum of $100,000 and a maximum of $500,000.

Provides for reallotment of grant funds. Provides for new awards under this Act only to the extent that each previous grant recipient has received the required continued funding. Provides for ratable reductions of amounts required to be awarded to the extent that appropriations are insufficient.

Sets forth institutional eligibility provisions. Permits grant applications by any academic department or program of an institution of higher education which offers a program of post-baccalaureate study leading to a graduate degree in an area of national need (as designated through procedures set forth in this Act). Requires a department or program to be in existence for at least four years in order to be eligible for such a grant.

Directs the Secretary, after consulting with specified agencies and organizations, to designate areas of national need. (Lists, as examples of areas which might receive such designation, physical or life sciences, mathematics, engineering, computer science, foreign languages, or area studies.) Directs the Secretary, in making such designations, to take into account the extent to which the interest is compelling and the extent to which other Federal programs support post-baccalaureate study in the area concerned.

Sets forth criteria for grant applications, including a requirement of at least 25 percent non-Federal matching funds, for purposes of the fellowship program under this Act. Requires that the institution make such fellowship awards to individuals having financial need who: (1) plan teaching or research careers; (2) plan to pursue the highest possible degree available in their course of study; (3) are from traditionally underrepresented groups undertaking graduate study, as determined by the Secretary; and (4) have compiled excellent academic records in their previous programs of study.

Sets forth requirements relating to awards to graduate students. Provides that at least 80 percent of the grant to the academic department or program shall be used for such awards. Limits the period of such award to no longer than five years for any individual. Provides that such fellowships shall consist of payment of tuition and fees and a stipend. Limits the maximum individual annual stipend to $10,000 or the demonstrated level of need, whichever is less. Sets forth other conditions for receipt of such award.

Sets forth provisions for assistance to the graduate program. Provides that up to 20 percent of the grant to the institution may be used to conduct activities to improve the quality of the academic program offered at the department, including improvement of library resources and of laboratory and instructional equipment, and support for research projects and academic papers. Prohibits such funds from being used for the general operational overhead of the institution.

Part 2: Minority Graduate Student Assistance - Amends title IX (Graduate Programs) of the Higher Education Act of 1965 (the Act) to add a new part G program of grants to institutions to encourage minority participation in graduate education.

Provides for annual transfers from the Fund for allocations for this part. Allocates 65 percent of such funds to a program of institutional grants for preparing minority undergraduates for graduate study and 35 percent to a program of one-year graduate fellowships for students who successfully complete such undergraduate internship program.

Part 3: Work-Study - Amends part C (Work-Study Programs) of title IV of the Higher Education Act of 1965 to add a new program for graduate work-study in areas of national need.

Provides for annual transfers from the Fund of allocations for such program.

Directs the Secretary of Education to make grants to higher education institutions offering graduate programs to support such work-study program. Requires that such programs include part-time work and full-or-part-time study in areas such as mathematics, sciences, engineering, computers, and foreign languages.

Directs the Secretary of Education to report to the Congress on such program within five years after enactment of this Act.

Title III: Training - Subtitle A: Entrepreneurship Training - Directs the Secretary of Labor (the Secretary, for purposes of this title) to enter into entrepreneurship training program agreements with at least five but not more than ten States.

Provides, under such program agreements, for the awarding of adjustment assistance in the form of self-employment allowances to eligible individuals.

Provides that the Federal share of the costs of such assistance shall be in the amount of Federal reimbursement to which a State would otherwise be entitled if such additional compensation to individuals had been paid under any Federal law providing for extended, supplemental, or any other additional unemployment compensation. Permits States to use State unemployment funds to make such adjustment assistance payments.

Directs the Secretary to submit to the Congress an interim report on such program within two years after enactment of this Act and a final report within four years after such enactment.

Subtitle B: Dislocated Workers - Part 1: Transfers to Job Training Partnership Act - Provides for annual transfers from the Fund to the appropriation under the Job Training Partnership Act for: (1) discretionary grants for employment and training assistance for dislocated workers; and (2) allocations to States for dislocated worker programs.

Directs the Secretary, in making such discretionary grants, to give preference to applications directed at improving the capacity of U.S. business to compete in international trade.

Part 2: Transfers to Trade Adjustment Assistance - Provides for annual transfers from the Fund to the appropriation for trade adjustment assistance for workers under the Trade Act of 1974.

Subtitle C: Youth - Provides for annual transfers from the Fund to the appropriation for exemplary youth programs under provisions for training services for the disadvantaged under the Job Training Partnership Act.

Subtitle D: Demonstration Program - Provides for annual transfers from the Fund to the Secretary to carry out a demonstration program under the Job Training Partnership Act for grants to service delivery areas to establish, operate, and evaluate education and training brokerage services which match the needs of local businesses with the resources of local education and training providers, through information and improved access.

Requires that education and training services provided under this subtitle be directed at upgrading skills and retraining existing employees to improve employee productivity and business competitiveness. Requires that one-half of the cost of providing such education and training to employees be provided by the employer, with the remainder to be provided in cash or in kind by the educational or training institution. Limits to 15 percent of the funds available to the service delivery area under this subtitle that portion which may be used for such education and training services.

Directs the Secretary, within three years after enactment of this Act, to report to the Congress on such program on the basis of evaluations and reports submitted by recipients of funds under this subtitle.

Title IV: Tax Provisions - Subtitle A: Tax Incentives for Research, Education, and Employment - Amends the Internal Revenue Code to make permanent the exclusion from income of employer provided educational assistance. Provides that the $5,000 limitation on the exclusion of employer educational assistance shall not apply to graduate teaching assistants.

Makes permanent the research credit. Reduces the rate of the credit from 25 to 20 percent.

Modifies the rules relating to the tax credit allowable with respect to certain payments to educational institutions, scientific research organizations, scientific tax-exempt organizations, or certain grant organizations. Reduces the research tax credit to 20 percent for such organizations.

Treats the research tax credit as a business tax credit.

Extends the termination of the targeted jobs tax credit for four years until December 31, 1989. Provides that the targeted job tax credit shall be equal to 40 percent of the qualified first-year wages. Requires an employee to be employed for 14 days or more in order for the wages to qualify for the targeted jobs credit. Extends the authorization of the targeted jobs credit through FY 1988.

Subtitle B: Enterprise Zones - Enterprise Zone Enterprise Development and Employment Act of 1986 - Part I: Designation of Enterprise Zone - Amends the Internal Revenue Code to provide for the designation of enterprise zones by the Secretary of Housing and Urban Development for purposes of extending the tax incentives and regulatory flexibility measures provided by this Act. Provides that State and local governments shall nominate areas for such designation. Limits the designation of enterprise zones to 100 nominated areas, by the later of a 24-month period or July 1, 1985 (one-fourth of which must be in rural areas). Limits the period during which such designation shall remain in effect.

Provides that the Secretary may designate such zones only if: (1) the area is within the jurisdiction of the local government; (2) the boundary of the area is continuous; (3) the area has a population of at least 4,000 if any portion thereof is located within a standard metropolitan statistical area (with a population of at least 50,000), or 1,500 otherwise, or is within an Indian reservation; and (4) the area meets specified unemployment and poverty requirements.

Requires nominating local governments, as a condition of the Secretary's designation, to agree in writing to follow a course of action which may include reducing tax rates, improving local services, simplifying or streamlining regulation of business, receiving commitments of private entities to assist employees and residents of the area, permitting State and local income tax deductions for fees for services performed by a nongovernmental entity formerly performed by a governmental entity, giving special preference to contractors owned and operated by members of a minority, and giving surplus land in the enterprise zone to neighborhood organizations agreeing to operate a business on the land.

Describes areas to which preference shall be given in deciding to designate enterprise zones.

Requires the Secretary to prepare and submit to the Congress every four years a report on the effects of such enterprise zones' designation.

Requires that any property tax reduction effected by a local government under the terms of this Act be disregarded for purposes of determining the eligibility of a State or local government for Federal assistance or benefits.

States that designation of an enterprise zone shall not give displaced persons from such an area any rights or benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

Treats any area designated as an enterprise zone as a labor surplus area under Federal law.

Part II: Federal Income Tax Incentives - Subpart A: Credits for Employers and Employees - Allows employers located in enterprise zones a nonrefundable income tax credit for increased employment expenditures and employment of the disadvantaged. Allows a three-year carryback and a 15-year carryover of such credit. Sets the amount of such credit at ten percent of the increase in payroll (taking into account a maximum of $17,500 in wages per year per employee) plus 50 percent of the wages paid to certain disadvantaged workers for the first three years of the enterprise zone designation. Phases out such economically disadvantaged credit. Disallows a deduction for the portion of the wages or salaries taken into account for such credit.

Requires that where there is an early termination of employment by an employer in the case of qualified economically disadvantaged individuals, the tax for that taxable year in which the termination occurred must be increased by the tax credits allowed for such employees.

Allows employees located in enterprise zones a nonrefundable income tax credit equal to five percent of qualified wages earned per year (taking into account a maximum of $10,500 in wages per year). Phases out such credit.

Subpart B: Credits for Investment in Tangible Property in Enterprise Zones - Allows businesses an additional investment tax credit for investments made in certain enterprise zone construction property located in enterprise zones. Limits such credit to ten percent for new enterprise zone construction property, including rental property. Requires that the property subject to such credit be located in an enterprise zone, be predominantly used in the zone, be either constructed, reconstructed, renovated, etc. during the period of zone designation or acquired during such period, and not be acquired from relatives or related corporations. Requires the recapture of such credit upon the early disposition of the property. Provides for a phase-out of the enterprise zone tax credit as the enterprise zone ends. Provides for an adjustment to the basis of the enterprise zone construction property to reflect the enterprise zone tax credit.

Subpart C: Nonrecognition of Qualified Enterprise Zone Capital Gain Where Acquisition of Enterprise Zone Business Property - Provides for the nonrecognition of capital gain on the sale of property where, within the one-year period beginning on the date of such sale, qualified replacement property is acquired by the taxpayer, to the extent the gain from the sale does not exceed the cost of the replacement property. Defines "qualified replacement property" as any personal property used predominantly in an enterprise zone in the active conduct of a trade or business within the enterprise zone, any real property located in the enterprise zone used in the active conduct of a trade or business, or any corporation, partnership, or other entity if, for the three most recent taxable years of such entity ending before the date of the purchase of such interest, such entity was a qualified business. Sets forth special rules for the operation of this provision.

Requires the basis of the replacement property to be reduced by an amount equal to the amount of gain not recognized on the sale of such other property. Extends the period for the statute of limitations relating to the assessment of tax with respect to the sale of property involving the nonrecognition provisions. Provides that the holding period for the qualified replacement property shall include the period for which the property sold or exchanged had been held as of the date of the sale or exchange.

Subpart D: Deduction for Purchase of Enterprise Stock - Allows a taxpayer to deduct the aggregate amount paid during the taxable year for the purchase of enterprise stock on the original issue of such stock by a qualified issuer. Limits the maximum amount of such deduction to $100,000 a year. Requires that the $100,000 limit must be allocated among the members of a controlled group. Requires the pro rata allocation of the $100,000 limit among the stock purchased where the aggregate amount of stock purchased exceeds the $100,000 limitation. Requires that the gain from the disposition of the stock shall be treated as ordinary income. Provides a formula for calculating such gain. Provides that interest is charged on the disposition of such stock if such disposition occurs before the end of the three-year period beginning on the date the stock was purchased.

Provides that, where an issuer ceases to be a qualified issuer of enterprise stock before the close of the fifth taxable year after the date the stock was issued, the taxpayer must include in income the amount of the deduction allowed with respect to such stock plus interest on the aggregate decrease in tax of the taxpayer resulting from the deduction allowed with respect to such stock. Sets forth special rules with respect to such stock. Requires the basis of such stock to be reduced by the amount of the deduction allowed with respect to such stock.

Subpart E: Rules Relating to Industrial Development Bonds - Provides that limitations on the cost recovery deductions for property financed with tax-exempt industrial development bonds shall not apply to enterprise zone property. Provides that the termination of the small issue exemption shall not apply to industrial development bonds, the proceeds of which are used to finance facilities in such enterprise zones.

Subpart F: Ordinary Loss Deduction for Securities of Enterprise Zone Business Which Become Worthless - Permits an ordinary loss deduction for securities of enterprise zone businesses which become worthless during the taxable year.

Subpart G: Increase in Research Credit for Research Conducted in Enterprise Zones - Increases the tax credit for increasing research activities to 37 and one-half percent (currently, 25 percent for research conducted in enterprise zones).

Subpart H: Sense of the Congress with Respect to Tax Simplification - Expresses the sense of the Congress that the Internal Revenue Service should simplify the administration and enforcement of any provision of the Internal Revenue Code affected by this Act.

Subpart I: Regulations - Directs the Secretary of the Treasury to issue regulations to carry out the provisions of this Act not later than six months after the date of enactment.

Part III: Regulatory Flexibility - Revises the definition of "small entity" for purposes of the analysis of regulatory functions to include qualified businesses (as defined in title II of this Act) and governments and nonprofit enterprises operating within enterprise zones.

Authorizes Federal agencies, upon request by a designating government, to waive or modify rules and regulations which pertain to the carrying out of projects or activities within an enterprise zone. Requires agencies to approve such request if the resulting benefits of job creation, community development, or economic revitalization outweigh the public interest in continuation of the rule unchanged.

Disallows waiver or modification of a rule that would directly violate a statutory requirement (including the Davis-Bacon Act and Fair Labor Standards Act) or which would present a danger to the public health and safety. Provides that such waivers or modifications of a rule shall remain in effect as long as the zone designations.

Amends the Department of Housing and Urban Development Act to direct the Secretary of Housing and Urban Development to promote the coordination of all enterprise zone programs and consolidate all periodic reports required under such programs into one summary report.

Part IV: Establishment of Foreign-Trade Zones in Enterprise Zones - Requires the Foreign-Trade Board to consider on a priority basis and expedite the processing of applications for the establishment of foreign-trade zones within enterprise zones. Requires the Secretary of the Treasury to give priority to, and expedite applications for, the establishment of ports of entry necessary to establish such zones. States that, to the maximum extent practicable, foreign-trade zones should be established within enterprise zones.

Part V: Study Requirement - Directs the Secretary, for each of the first three years after the enactment of this Act, to study, assess, and make legislative recommendations regarding: (1) the effects on the Treasury of the enactment of enterprise zone legislation by Federal, State, and local governments; and (2) the method by which cooperative efforts among the Federal, State, and local governments might enhance the effectiveness of enterprise zone legislation.

Title V: Plant Closing Response - Provides for worker readjustment and placement services.

Directs the Secretary of Labor (the Secretary) to identify individuals, including Department of Labor employees, to be available on a regional basis to provide planning, operational, and technical assistance to worker readjustment and placement committees for retraining, counseling, placement, human resource, community, education, and other services.

Allows such committees to be established by employers who anticipate needing to order a plant closing or mass layoff.

Provides that such committees be composed of representatives of employers and employees as well as mutually agreed upon individuals.

Authorizes the Secretary to provide financial assistance on a competitive basis to such committees from funds available from the Fund or from discretionary funds from other applicable programs. Limits the amount of such assistance to 50 percent of: (1) committee operating costs; and (2) employee relocation costs incurred by the committee.

Requires that the formation of and participation in such committees be completely voluntary. Prohibits the Secretary, in administering such assistance, from discriminating on the basis of employee representation or the lack thereof. Prohibits conditioning the continuation of assistance to a committee on the acceptance of any advice from the Secretary or the Secretary's representative.

Title VI: Labor-Management Cooperation for Productivity Improvements - Subtitle A: Employer Support for Labor-Management Committees - Amends the National Labor Relations Act to specify that an employer shall not be prohibited from establishing and providing financial and other assistance to a labor-management committee designed to enhance economic productivity by involving workers in decisions affecting their jobs. Prohibits such committees from having as one of their purposes the discouragement of the exercise of employees' right to organize or the interference with collective bargaining.

Subtitle B: Transfers for Labor-Management Committees - Provides for annual transfers from the Fund to the appropriation under the Labor Management Relations Act, 1947 for labor-management committees.

Amends the Labor Management Relations Act, 1947 to revise provisions for representation on such committees.

Title VII: Transfers of Trust Funds to the General Fund - Directs the Secretary of the Treasury, if there are any remaining funds after the annual transfers from the Fund to carry out titles II through VI of this Act, to transfer to the general fund of the Treasury an amount equal to any Federal tax revenues lost as a result of enterprise zone provisions of this Act. Provides that any funds remaining in the Fund thereafter shall be available in future years for titles II through VI of this Act.