[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3009 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
May 23, 2002.
Resolved, That the bill from the House of Representatives (H.R.
3009) entitled ``An Act to extend the Andean Trade Preference Act, to
grant additional trade benefits under that Act, and for other
purposes.'', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Trade Act of 2002''.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
(a) Divisions.--This Act is organized into 4 divisions as follows:
(1) Division a.--Trade Adjustment Assistance.
(2) Division b.--Bipartisan Trade Promotion Authority.
(3) Division c.--Andean Trade Preference Act.
(4) Division d.--Extension of Certain Preferential Trade
Treatment and Other Provisions.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A--TRADE ADJUSTMENT ASSISTANCE
Sec. 101. Short title.
TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS
Sec. 111. Adjustment assistance for workers.
Sec. 112. Displaced worker self-employment training pilot program.
TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS
Sec. 201. Reauthorization of program.
TITLE III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES
Sec. 301. Purpose.
Sec. 302. Trade adjustment assistance for communities.
TITLE IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
Sec. 401. Trade adjustment assistance for farmers.
TITLE V--TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN
Sec. 501. Trade adjustment assistance for fishermen.
TITLE VI--HEALTH CARE COVERAGE OPTIONS FOR WORKERS ELIGIBLE FOR TRADE
ADJUSTMENT ASSISTANCE
Sec. 601. Trade adjustment assistance health insurance credit.
Sec. 602. Advance payment of trade adjustment assistance health
insurance credit.
Sec. 603. Health insurance coverage for eligible individuals.
TITLE VII--CONFORMING AMENDMENTS AND EFFECTIVE DATE
Sec. 701. Conforming amendments.
TITLE VIII--SAVINGS PROVISIONS AND EFFECTIVE DATE
Sec. 801. Savings provisions.
Sec. 802. Effective date.
TITLE IX--REVENUE PROVISIONS
Sec. 901. Custom user fees.
TITLE X--MISCELLANEOUS PROVISIONS
Sec. 1001. Country of origin labeling of fish and shellfish products.
Sec. 1002. Sugar policy.
TITLE XI--CUSTOMS REAUTHORIZATION
Sec. 1101. Short title.
Subtitle A--United States Customs Service
Chapter 1--Drug Enforcement and Other Noncommercial and Commercial
Operations
Sec. 1111. Authorization of appropriations for noncommercial
operations, commercial operations, and air
and marine interdiction.
Sec. 1112. Antiterrorist and illicit narcotics detection equipment for
the United States-Mexico border, United
States-Canada border, and Florida and the
Gulf Coast seaports.
Sec. 1113. Compliance with performance plan requirements.
Chapter 2--Child Cyber-Smuggling Center of the Customs Service
Sec. 1121. Authorization of appropriations for program to prevent child
pornography/child sexual exploitation.
Chapter 3--Miscellaneous Provisions
Sec. 1131. Additional Customs Service officers for United States-Canada
border.
Sec. 1132. Study and report relating to personnel practices of the
Customs Service.
Sec. 1133. Study and report relating to accounting and auditing
procedures of the Customs Service.
Sec. 1134. Establishment and implementation of cost accounting system;
reports.
Sec. 1135. Study and report relating to timeliness of prospective
rulings.
Sec. 1136. Study and report relating to customs user fees.
Sec. 1137. Authorization of appropriations for Customs staffing.
Chapter 4--Antiterrorism Provisions
Sec. 1141. Emergency adjustments to offices, ports of entry, or
staffing of the Customs Service.
Sec. 1142. Mandatory advanced electronic information for cargo and
passengers.
Sec. 1143. Border search authority for certain contraband in outbound
mail.
Sec. 1144. Authorization of appropriations for reestablishment of
Customs operations in New York City.
Chapter 5--Textile Transshipment Provisions
Sec. 1151. GAO audit of textile transshipment monitoring by Customs
Service.
Sec. 1152. Authorization of appropriations for textile transshipment
enforcement operations.
Sec. 1153. Implementation of the African Growth and Opportunity Act.
Subtitle B--Office of the United States Trade Representative
Sec. 1161. Authorization of appropriations.
Subtitle C--United States International Trade Commission
Sec. 1171. Authorization of appropriations.
Subtitle D--Other Trade Provisions
Sec. 1181. Increase in aggregate value of articles exempt from duty
acquired abroad by United States residents.
Sec. 1182. Regulatory audit procedures.
Subtitle E--Sense of Senate
Sec. 1191. Sense of Senate.
DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI--TRADE PROMOTION AUTHORITY
Sec. 2101. Short title; findings.
Sec. 2102. Trade negotiating objectives.
Sec. 2103. Trade agreements authority.
Sec. 2104. Consultations and assessment.
Sec. 2105. Implementation of trade agreements.
Sec. 2106. Treatment of certain trade agreements for which negotiations
have already begun.
Sec. 2107. Congressional Oversight Group.
Sec. 2108. Additional implementation and enforcement requirements.
Sec. 2109. Committee staff.
Sec. 2110. Conforming amendments.
Sec. 2111. Report on impact of trade promotion authority.
Sec. 2112. Identification of small business advocate at WTO.
Sec. 2113. Definitions.
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN TRADE PREFERENCE
Sec. 3101. Short title; findings.
Sec. 3102. Temporary provisions.
Sec. 3103. Termination.
TITLE XXXII--MISCELLANEOUS TRADE BENEFITS
Sec. 3201. Wool provisions.
Sec. 3202. Duty suspension on wool.
Sec. 3203. Ceiling fans.
Sec. 3204. Certain steam or other vapor generating boilers used in
nuclear facilities.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER
PROVISIONS
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
Sec. 4101. Generalized system of preferences.
Sec. 4102. Amendments to generalized system of preferences.
TITLE XLII--OTHER PROVISIONS
Sec. 4201. Transparency in NAFTA tribunals.
Sec. 4202. Expression of solidarity with Israel in its fight against
terrorism.
Sec. 4203. Limitation on use of certain revenue.
Sec. 4204. Sense of the Senate regarding the United States-Russian
Federation summit meeting, May 2002.
Sec. 4205. No appropriations.
DIVISION A--TRADE ADJUSTMENT ASSISTANCE
SEC. 101. SHORT TITLE.
This division may be cited as the ``Trade Adjustment Assistance
Reform Act of 2002''.
TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS
SEC. 111. ADJUSTMENT ASSISTANCE FOR WORKERS.
Chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et
seq.) is amended to read as follows:
``CHAPTER 2--ADJUSTMENT ASSISTANCE FOR WORKERS
``Subchapter A--General Provisions
``SEC. 221. DEFINITIONS.
``In this chapter:
``(1) Additional compensation.--The term `additional
compensation' has the meaning given that term in section 205(3)
of the Federal-State Extended Unemployment Compensation Act of
1970 (26 U.S.C. 3304 note).
``(2) Adversely affected employment.--The term `adversely
affected employment' means employment in a firm or appropriate
subdivision of a firm, if workers of that firm or subdivision
are eligible to apply for adjustment assistance under this
chapter.
``(3) Adversely affected worker.--
``(A) In general.--The term `adversely affected
worker' means a worker who is a member of a group of
workers certified by the Secretary under section
231(a)(1) as eligible for trade adjustment assistance.
``(B) Adversely affected secondary worker.--The
term `adversely affected worker' includes an adversely
affected secondary worker who is a member of a group of
workers employed at a downstream producer or a
supplier, that is certified by the Secretary under
section 231(a)(2) as eligible for trade adjustment
assistance.
``(4) Average weekly hours.--The term `average weekly
hours' means the average hours worked by a worker (excluding
overtime) in the employment from which the worker has been or
claims to have been separated in the 52 weeks (excluding weeks
during which the worker was on leave for purposes of vacation,
sickness, maternity, military service, or any other employer-
authorized leave) preceding the week specified in paragraph
(5)(B)(ii).
``(5) Average weekly wage.--
``(A) In general.--The term `average weekly wage'
means \1/13\ of the total wages paid to an individual
in the high quarter.
``(B) Definitions.--For purposes of computing the
average weekly wage--
``(i) the term `high quarter' means the
quarter in which the individual's total wages
were highest among the first 4 of the last 5
completed calendar quarters immediately
preceding the quarter in which occurs the week
with respect to which the computation is made;
and
``(ii) the term `week' means the week in
which total separation occurred, or, in cases
where partial separation is claimed, an
appropriate week, as defined in regulations
prescribed by the Secretary.
``(6) Benefit period.--The term `benefit period' means,
with respect to an individual, the following:
``(A) State law.--The benefit year and any ensuing
period, as determined under applicable State law,
during which the individual is eligible for regular
compensation, additional compensation, or extended
compensation.
``(B) Federal law.--The equivalent to the benefit
year or ensuing period provided for under the
applicable Federal unemployment insurance law.
``(7) Benefit year.--The term `benefit year' has the same
meaning given that term in the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
``(8) Contributed importantly.--The term `contributed
importantly' means a cause that is important but not
necessarily more important than any other cause.
``(9) Cooperating state.--The term `cooperating State'
means any State that has entered into an agreement with the
Secretary under section 222.
``(10) Customized training.--The term `customized training'
means training that is designed to meet the special
requirements of an employer (including a group of employers)
and that is conducted with a commitment by the employer to
employ an individual on successful completion of the training.
``(11) Downstream producer.--The term `downstream producer'
means a firm that performs additional, value-added production
processes for a firm or subdivision, including a firm that
performs final assembly or finishing, directly for another firm
(or subdivision), for articles that were the basis for a
certification of eligibility under section 231(a)(1) of a group
of workers employed by such other firm, if the certification of
eligibility under section 231(a)(1) is based on an increase in
imports from, or a shift in production to, Canada or Mexico.
``(12) Extended compensation.--The term `extended
compensation' has the meaning given that term in section 205(4)
of the Federal-State Extended Unemployment Compensation Act of
1970 (26 U.S.C. 3304 note).
``(13) Job finding club.--The term `job finding club' means
a job search workshop which includes a period of structured,
supervised activity in which participants attempt to obtain
jobs.
``(14) Job search program.--The term `job search program'
means a job search workshop or job finding club.
``(15) Job search workshop.--The term `job search workshop'
means a short (1- to 3-day) seminar, covering subjects such as
labor market information, resume writing, interviewing
techniques, and techniques for finding job openings, that is
designed to provide participants with knowledge that will
enable the participants to find jobs.
``(16) On-the-job training.--The term `on-the-job training'
has the same meaning as that term has in section 101(31) of the
Workforce Investment Act.
``(17) Partial separation.--A partial separation shall be
considered to exist with respect to an individual if--
``(A) the individual has had a 20-percent or
greater reduction in the average weekly hours worked by
that individual in adversely affected employment; and
``(B) the individual has had a 20-percent or
greater reduction in the average weekly wage of the
individual with respect to adversely affected
employment.
``(18) Regular compensation.--The term `regular
compensation' has the meaning given that term in section 205(2)
of the Federal-State Extended Unemployment Compensation Act of
1970 (26 U.S.C. 3304 note).
``(19) Regular state unemployment.--The term `regular State
unemployment' means unemployment insurance benefits other than
an extension of unemployment insurance by a State using its own
funds beyond either the 26-week period mandated by Federal law
or any additional period provided for under the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note).
``(20) Secretary.--The term `Secretary' means the Secretary
of Labor.
``(21) State.--The term `State' includes each State of the
United States, the District of Columbia, and the Commonwealth
of Puerto Rico.
``(22) State agency.--The term `State agency' means the
agency of the State that administers the State law.
``(23) State law.--The term `State law' means the
unemployment insurance law of the State approved by the
Secretary under section 3304 of the Internal Revenue Code of
1986.
``(24) Supplier.--The term `supplier' means a firm that
produces and supplies directly to another firm (or subdivision)
component parts for articles that were the basis for a
certification of eligibility under section 231(a)(1) of a group
of workers employed by such other firm.
``(25) Total separation.--The term `total separation' means
the layoff or severance of an individual from employment with a
firm in which or in a subdivision of which, adversely affected
employment exists.
``(26) Unemployment insurance.--The term `unemployment
insurance' means the unemployment compensation payable to an
individual under any State law or Federal unemployment
compensation law, including chapter 85 of title 5, United
States Code, and the Railroad Unemployment Insurance Act (45
U.S.C. 351 et seq.).
``(27) Week.--Except as provided in paragraph 5(B)(ii), the
term `week' means a week as defined in the applicable State
law.
``(28) Week of unemployment.--The term `week of
unemployment' means a week of total, part-total, or partial
unemployment as determined under the applicable State law or
Federal unemployment insurance law.
``SEC. 222. AGREEMENTS WITH STATES.
``(a) In General.--The Secretary is authorized on behalf of the
United States to enter into an agreement with any State or with any
State agency (referred to in this chapter as `cooperating State' and
`cooperating State agency', respectively) to facilitate the provision
of services under this chapter.
``(b) Provisions of Agreements.--Under an agreement entered into
under subsection (a)--
``(1) the cooperating State agency as an agent of the
United States shall--
``(A) facilitate the early filing of petitions
under section 231(b) for any group of workers that the
State considers is likely to be eligible for benefits
under this chapter;
``(B) assist the Secretary in the review of any
petition submitted from that State by verifying the
information and providing other assistance as the
Secretary may request;
``(C) advise each worker who applies for
unemployment insurance of the available benefits under
this chapter and the procedures and deadlines for
applying for those benefits and of the worker's
potential eligibility for assistance with health care
coverage through the trade adjustment assistance health
insurance credit under section 6429 of the Internal
Revenue Code of 1986 or under funds made available to
the State to carry out section 173(f) of the Workforce
Investment Act of 1998;
``(D) receive applications for services under this
chapter;
``(E) provide payments on the basis provided for in
this chapter;
``(F) advise each adversely affected worker to
apply for training under section 240, and of the
deadlines for benefits related to enrollment in
training under this chapter;
``(G) ensure that the State employees with
responsibility for carrying out an agreement entered
into under subsection (a)--
``(i) inform adversely affected workers
covered by a certification issued under section
231(c) of the workers' (and individual member's
of the worker's family) potential eligibility
for--
``(I) medical assistance under the
medicaid program established under
title XIX of the Social Security Act
(42 U.S.C. 1396a et seq.);
``(II) child health assistance
under the State children's health
insurance program established under
title XXI of that Act (42 U.S.C. 1397aa
et seq.);
``(III) child care services for
which assistance is provided under the
Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.);
``(IV) the trade adjustment
assistance health insurance credit
under section 6429 of the Internal
Revenue Code of 1986 and health care
coverage assistance under funds made
available to the State to carry out
section 173(f) of the Workforce
Investment Act of 1998; and
``(V) other Federal- and State-
funded health care, child care,
transportation, and assistance programs
for which the workers may be eligible;
and
``(ii) provide such workers with
information regarding how to apply for such
assistance, services, and programs, including
notification that the election period for COBRA
continuation may be extended for certain
workers under section 603 of the Trade
Adjustment Assistance Reform Act of 2002;
``(H) provide adversely affected workers referral
to training services approved under title I of the
Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.), and any other appropriate Federal or State
program designed to assist dislocated workers or
unemployed individuals, consistent with the
requirements of subsection (b)(2);
``(I) collect and transmit to the Secretary any
data as the Secretary shall reasonably require to
assist the Secretary in assuring the effective and
efficient performance of the programs carried out under
this chapter; and
``(J) otherwise actively cooperate with the
Secretary and with other Federal and State agencies in
providing payments and services under this chapter,
including participation in the performance measurement
system established by the Secretary under section 224.
``(2) the cooperating State shall--
``(A) arrange for the provision of services under
this chapter through the one-stop delivery system
established in section 134(c) of the Workforce
Investment Act of 1998 (29 U.S.C. 2864(c)) where
available;
``(B) provide to adversely affected workers
statewide rapid response activities under section
134(a)(2)(A) of the Workforce Investment Act of 1998
(29 U.S.C. 2864(a)(2)(A)) in the same manner and to the
same extent as any other worker eligible for those
activities;
``(C) afford adversely affected workers the
services provided under section 134(d) of the Workforce
Investment Act of 1998 (29 U.S.C. 92864(d)) in the same
manner and to the same extent as any other worker
eligible for those services; and
``(D) provide training services under this chapter
using training providers approved under title I of the
Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.) which may include community colleges, and other
effective providers of training services.
``(c) Other Provisions.--
``(1) Approval of training providers.--The Secretary shall
ensure that the training services provided by cooperating
States are provided by organizations approved by the Secretary
to effectively assist workers eligible for assistance under
this chapter.
``(2) Amendment, suspension, or termination of
agreements.--Each agreement entered into under this section
shall provide the terms and conditions upon which the agreement
may be amended, suspended, or terminated.
``(3) Effect on unemployment insurance.--Each agreement
entered into under this section shall provide that unemployment
insurance otherwise payable to any adversely affected worker
will not be denied or reduced for any week by reason of any
right to payments under this chapter.
``(4) Coordination of workforce investment activities.--In
order to promote the coordination of Workforce Investment Act
activities in each State with activities carried out under this
chapter, each agreement entered into under this section shall
provide that the State shall submit to the Secretary, in such
form as the Secretary may require, the description and
information described in paragraphs (8) and (14) of section
112(b) of the Workforce Investment Act of 1998 (29 U.S.C.
2822(b) (8) and (14)).
``(d) Review of State Determinations.--
``(1) In general.--A determination by a cooperating State
regarding entitlement to program benefits under this chapter is
subject to review in the same manner and to the same extent as
determinations under the applicable State law.
``(2) Appeal.--A review undertaken by a cooperating State
under paragraph (1) may be appealed to the Secretary pursuant
to such regulations as the Secretary may prescribe.
``SEC. 223. ADMINISTRATION ABSENT STATE AGREEMENT.
``(a) In General.--In any State in which there is no agreement in
force under section 222, the Secretary shall arrange, under regulations
prescribed by the Secretary, for the performance of all necessary
functions under this chapter, including providing a hearing for any
worker whose application for payment is denied.
``(b) Finality of Determination.--A final determination under
subsection (a) regarding entitlement to program benefits under this
chapter is subject to review by the courts in the same manner and to
the same extent as is provided by section 205(g) of the Social Security
Act (42 U.S.C. 405(g)).
``SEC. 224. DATA COLLECTION; EVALUATIONS; REPORTS.
``(a) Data Collection.--The Secretary shall, pursuant to
regulations prescribed by the Secretary, collect any data necessary to
meet the requirements of this chapter.
``(b) Performance Evaluations.--The Secretary shall establish an
effective performance measuring system to evaluate the following:
``(1) Program performance.--
``(A) speed of petition processing;
``(B) quality of petition processing;
``(C) cost of training programs;
``(D) coordination of programs under this title
with programs under the Workforce Investment Act (29
U.S.C. 2801 et seq.);
``(E) length of time participants take to enter and
complete training programs;
``(F) the effectiveness of individual contractors
in providing appropriate retraining information;
``(G) the effectiveness of individual approved
training programs in helping workers obtain employment;
``(H) best practices related to the provision of
benefits and retraining; and
``(I) other data to evaluate how individual States
are implementing the requirements of this title.
``(2) Participant outcomes.--
``(A) reemployment rates;
``(B) types of jobs in which displaced workers have
been placed;
``(C) wage and benefit maintenance results;
``(D) training completion rates; and
``(E) other data to evaluate how effective programs
under this chapter are for participants, taking into
consideration current economic conditions in the State.
``(3) Program participation data.--
``(A) the number of workers receiving benefits and
the type of benefits being received;
``(B) the number of workers enrolled in, and the
duration of, training by major types of training;
``(C) earnings history of workers that reflects
wages before separation and wages in any job obtained
after receiving benefits under this Act;
``(D) the cause of dislocation identified in each
certified petition;
``(E) the number of petitions filed and workers
certified in each United States congressional district;
and
``(F) the number of workers who received waivers
under each category identified in section 235(c)(1) and
the average duration of such waivers.
``(c) State Participation.--The Secretary shall ensure, to the
extent practicable, through oversight and effective internal control
measures the following:
``(1) State participation.--Participation by each State in
the performance measurement system established under subsection
(b).
``(2) Monitoring.--Monitoring by each State of internal
control measures with respect to performance measurement data
collected by each State.
``(3) Response.--The quality and speed of the rapid
response provided by each State under section 134(a)(2)(A) of
the Workforce Investment Act of 1998 (29 U.S.C. 2864(a)(2)(A)).
``(d) Reports.--
``(1) Reports by the secretary.--
``(A) Initial report.--Not later than 6 months
after the date of enactment of the Trade Adjustment
Assistance Reform Act of 2002, the Secretary shall
submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives a report that--
``(i) describes the performance measurement
system established under subsection (b);
``(ii) includes analysis of data collected
through the system established under subsection
(b);
``(iii) includes information identifying
the number of workers who received waivers
under section 235(c) and the average duration
of those during the preceding year;
``(iv) describes and analyzes State
participation in the system;
``(v) analyzes the quality and speed of the
rapid response provided by each State under
section 134(a)(2)(A) of the Workforce
Investment Act of 1998 (29 U.S.C.
2864(a)(2)(A)); and
``(vi) provides recommendations for program
improvements.
``(B) Annual report.--Not later than 1 year after
the date the report is submitted under subparagraph
(A), and annually thereafter, the Secretary shall
submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives a report that includes the information
collected under clauses (ii) through (v) of
subparagraph (A).
``(2) State reports.--Pursuant to regulations prescribed by
the Secretary, each State shall submit to the Secretary a
report that details its participation in the programs
established under this chapter, and that contains the data
necessary to allow the Secretary to submit the report required
under paragraph (1).
``(3) Publication.--The Secretary shall make available to
each State, and other public and private organizations as
determined by the Secretary, the data gathered and evaluated
through the performance measurement system established under
paragraph (1).
``SEC. 225. STUDY BY SECRETARY OF LABOR WHEN INTERNATIONAL TRADE
COMMISSION BEGINS INVESTIGATION.
``(a) Notification of Investigation.--Whenever the International
Trade Commission begins an investigation under section 202 with respect
to an industry, the Commission shall immediately notify the Secretary
of that investigation, and the Secretary shall immediately begin a
study of--
``(1) the number of workers in the domestic industry
producing the like or directly competitive article who have
been or are likely to be certified as eligible for adjustment
assistance under this chapter; and
``(2) the extent to which the adjustment of those workers
to the import competition may be facilitated through the use of
existing programs.
``(b) Report.--
``(1) In general.--The Secretary shall provide a report
based on the study conducted under subsection (a) to the
President not later than 15 days after the day on which the
Commission makes its report under section 202(f).
``(2) Publication.--The Secretary shall promptly make
public the report provided to the President under paragraph (1)
(with the exception of information which the Secretary
determines to be confidential) and shall have a summary of the
report published in the Federal Register.
``SEC. 226. REPORT BY SECRETARY OF LABOR ON LIKELY IMPACT OF TRADE
AGREEMENTS.
``(a) In General.--At least 90 calendar days before the day on
which the President enters into a trade agreement under section 2103(b)
of the Bipartisan Trade Promotion Authority Act of 2002, the President
shall provide the Secretary with details of the agreement as it exists
at that time and direct the Secretary to prepare and submit the
assessment described in subsection (b). Between the time the President
instructs the Secretary to prepare the assessment under this section
and the time the Secretary submits the assessment to Congress, the
President shall keep the Secretary current with respect to the details
of the agreement.
``(b) Assessment.--Not later than 90 calendar days after the
President enters into the agreement, the Secretary shall submit to the
President, the Committee on Finance of the Senate, the Committee on
Ways and Means of the House of Representatives, and the Committees on
Appropriations of the Senate and the House of Representatives, a report
assessing the likely impact of the agreement on employment in the
United States economy as a whole and in specific industrial sectors,
including the extent of worker dislocations likely to result from
implementation of the agreement. The report shall include an estimate
of the financial and administrative resources necessary to provide
trade adjustment assistance to all potentially adversely affected
workers.
``Subchapter B--Certifications
``SEC. 231. CERTIFICATION AS ADVERSELY AFFECTED WORKERS.
``(a) Eligibility for Certification.--
``(1) General rule.--A group of workers (including workers
in any agricultural firm or subdivision of an agricultural
firm) shall be certified by the Secretary as adversely affected
workers and eligible for trade adjustment assistance benefits
under this chapter pursuant to a petition filed under
subsection (b) if the Secretary determines that a significant
number or proportion of the workers in the workers' firm or an
appropriate subdivision of the firm have become totally or
partially separated, or are threatened to become totally or
partially separated, and that either--
``(A)(i) the sales or production, or both, of such
firm or subdivision have decreased absolutely;
``(ii) the value or volume of imports of articles
like or directly competitive with articles produced by
that firm or subdivision have increased; and
``(iii) the increase in the value or volume of
imports described in clause (ii) contributed
importantly to the workers' separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision; or
``(B) there has been a shift in production by the
workers' firm or subdivision to a foreign country of
articles like or directly competitive with articles
which are produced by that firm or subdivision and the
shift in production contributed importantly to the
workers' separation or threat of separation.
``(2) Adversely affected secondary worker.--A group of
workers (including workers in any agricultural firm or
subdivision of an agricultural firm) shall be certified by the
Secretary as adversely affected and eligible for trade
adjustment assistance benefits under this chapter pursuant to a
petition filed under subsection (b) if the Secretary determines
that--
``(A) a significant number or proportion of the
workers in the workers' firm or an appropriate
subdivision of the firm have become totally or
partially separated, or are threatened to become
totally or partially separated;
``(B) the workers' firm (or subdivision) is a
supplier or downstream producer to a firm (or
subdivision) that employed a group of workers who
received a certification of eligibility under paragraph
(1), and such supply or production is related to the
article that was the basis for such certification (as
defined in section 221 (11) and (24)); and
``(C) a loss of business by the workers' firm with
the firm (or subdivision) described in subparagraph (B)
contributed importantly to the workers' separation or
threat of separation determined under subparagraph (A).
``(3) Special rule for secondary workers.--Notwithstanding
paragraph (2), the Secretary may, pursuant to standards
established by the Secretary and for good cause shown, certify
as eligible for trade adjustment assistance under this chapter
a group of workers who meet the requirements for certification
as adversely affected secondary workers in paragraph (2),
except that the Secretary has not received a petition under
paragraph (1) on behalf of workers at a firm to which the
petitioning workers' firm is a supplier or downstream producer
as defined in section 221 (11) and (24).
``(4) Special provisions.--
``(A) Oil and natural gas producers.--For purposes
of this section, any firm, or appropriate subdivision
of a firm, that engages in exploration or drilling for
oil or natural gas shall be considered to be a firm
producing oil or natural gas.
``(B) Oil and natural gas imports.--For purposes of
this section, any firm, or appropriate subdivision of a
firm, that engages in exploration or drilling for oil
or natural gas, or otherwise produces oil or natural
gas, shall be considered to be producing articles
directly competitive with imports of oil and with
imports of natural gas.
``(C) Taconite.--For purposes of this section,
taconite pellets produced in the United States shall be
considered to be an article that is like or directly
competitive with imports of semifinished steel slab.
``(b) Petitions.--
``(1) In general.--A petition for certification of
eligibility for trade adjustment assistance under this chapter
for a group of adversely affected workers shall be filed
simultaneously with the Secretary and with the Governor of the
State in which the firm or subdivision of the firm employing
the workers is located.
``(2) Persons who may file a petition.--A petition under
paragraph (1) may be filed by any of the following:
``(A) Workers.--A group of workers (including
workers in an agricultural firm or subdivision of any
agricultural firm).
``(B) Worker representatives.--The certified or
recognized union or other duly appointed representative
of the workers.
``(C) Worker adjustment and retraining
notification.--Any entity to which notice of a plant
closing or mass layoff must be given under section 3 of
the Worker Adjustment and Retraining Notification Act
(29 U.S.C. 2102).
``(D) Other.--Employers of workers described in
subparagraph (A), one-stop operators or one-stop
partners (as defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801)), or State
employment agencies, on behalf of the workers.
``(E) Request to initiate certification.--The
President, or the Committee on Finance of the Senate or
the Committee on Ways and Means of the House of
Representatives (by resolution), may petition the
Secretary to initiate a certification process under
this chapter to determine the eligibility for trade
adjustment assistance of a group of workers.
``(3) Actions by governor.--
``(A) Cooperating state.--Upon receipt of a
petition, the Governor of a cooperating State shall
ensure that the requirements of the agreement entered
into under section 222 are met.
``(B) Other states.--Upon receipt of a petition,
the Governor of a State that has not entered into an
agreement under section 222 shall coordinate closely
with the Secretary to ensure that workers covered by a
petition are--
``(i) provided with all available services,
including rapid response activities under
section 134 of the Workforce Investment Act (29
U.S.C. 2864);
``(ii) informed of the workers' (and
individual member's of the worker's family)
potential eligibility for--
``(I) medical assistance under the
medicaid program established under
title XIX of the Social Security Act
(42 U.S.C. 1396a et seq.);
``(II) child health assistance
under the State children's health
insurance program established under
title XXI of that Act (42 U.S.C. 1397aa
et seq.);
``(III) child care services for
which assistance is provided under the
Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.);
``(IV) the trade adjustment
assistance health insurance credit
under section 6429 of the Internal
Revenue Code of 1986 and health care
coverage assistance under funds made
available to the State to carry out
section 173(f) of the Workforce
Investment Act of 1998; and
``(V) other Federal and State
funded health care, child care,
transportation, and assistance programs
that the workers may be eligible for;
and
``(iii) provided with information regarding
how to apply for the assistance, services, and
programs described in clause (ii).
``(c) Actions by Secretary.--
``(1) In general.--As soon as possible after the date on
which a petition is filed under subsection (b), but not later
than 40 days after that date, the Secretary shall determine
whether the petitioning group meets the requirements of
subsection (a), and if warranted, shall issue a certification
of eligibility for trade adjustment assistance pursuant to this
subchapter. In making the determination, the Secretary shall
consult with all petitioning entities.
``(2) Publication of determination.--Upon making a
determination under paragraph (1), the Secretary shall promptly
publish a summary of the determination in the Federal Register
together with the reasons for making that determination.
``(3) Date specified in certification.--Each certification
made under this subsection shall specify the date on which the
total or partial separation began or threatened to begin with
respect to a group of certified workers.
``(4) Projected training needs.--The Secretary shall inform
the State Workforce Investment Board or equivalent agency, and
other public or private agencies, institutions, employers, and
labor organizations, as appropriate, of each certification
issued under section 231 and of projections, if available, of
the need for training under section 240 as a result of that
certification.
``(d) Scope of Certification.--
``(1) In general.--A certification issued under subsection
(c) shall cover adversely affected workers in any group that
meets the requirements of subsection (a), whose total or
partial separation occurred on or after the date on which the
petition was filed under subsection (b).
``(2) Workers separated prior to certification.--A
certification issued under subsection (c) shall cover adversely
affected workers whose total or partial separation occurred not
more than 1 year prior to the date on which the petition was
filed under subsection (b).
``(e) Termination of Certification.--
``(1) In general.--If the Secretary determines, with
respect to any certification of eligibility, that workers
separated from a firm or subdivision covered by a certification
of eligibility are no longer adversely affected workers, the
Secretary shall terminate the certification.
``(2) Publication of termination.--The Secretary shall
promptly publish notice of any termination made under paragraph
(1) in the Federal Register together with the reasons for
making that determination.
``(3) Application.--Any determination made under paragraph
(1) shall apply only to total or partial separations occurring
after the termination date specified by the Secretary.
``SEC. 232. BENEFIT INFORMATION TO WORKERS.
``(a) In General.--The Secretary shall, in accordance with the
provisions of section 222 or 223, as appropriate, provide prompt and
full information to adversely affected workers covered by a
certification issued under section 231(c), including information
regarding--
``(1) benefit allowances, training, and other employment
services available under this chapter;
``(2) petition and application procedures under this
chapter;
``(3) appropriate filing dates for the allowances,
training, and services available under this chapter; and
``(4) procedures for applying for and receiving all other
Federal benefits and services available to separated workers
during a period of unemployment.
``(b) Assistance to Groups of Workers.--
``(1) In general.--The Secretary shall provide any
necessary assistance to enable groups of workers to prepare
petitions or applications for program benefits.
``(2) Assistance from states.--The Secretary shall ensure
that cooperating States fully comply with the agreements
entered into under section 222 and shall periodically review
that compliance.
``(c) Notice.--
``(1) In general.--Not later that 15 days after a
certification is issued under section 231 (or as soon as
practicable after separation), the Secretary shall provide
written notice of the benefits available under this chapter to
each worker whom the Secretary has reason to believe is covered
by the certification.
``(2) Publication of notice.--The Secretary shall publish
notice of the benefits available under this chapter to workers
covered by each certification made under section 231 in
newspapers of general circulation in the areas in which those
workers reside.
``(3) Notice to other parties affected by these provisions
regarding health assistance.--The Secretary shall notify each
provider of health insurance within the meaning of section 7527
of the Internal Revenue Code of 1986 of the availability of
health care coverage assistance under title VI of the Trade
Adjustment Assistance Reform Act of 2002 and of the temporary
extension of the election period for COBRA continuation
coverage for certain workers under section 603 of that Act.
``Subchapter C--Program Benefits
``PART I--GENERAL PROVISIONS
``SEC. 234. COMPREHENSIVE ASSISTANCE.
``Workers covered by a certification issued by the Secretary under
section 231 shall be eligible for the following:
``(1) Trade adjustment allowances as described in sections
235 through 238.
``(2) Employment services as described in section 239.
``(3) Training as described in section 240.
``(4) Job search allowances as described in section 241.
``(5) Relocation allowances as described in section 242.
``(6) Supportive services and wage insurance as described
in section 243.
``(7) Health care coverage assistance under title VI of the
Trade Adjustment Assistance Reform Act of 2002.
``PART II--TRADE ADJUSTMENT ALLOWANCES
``SEC. 235. QUALIFYING REQUIREMENTS FOR WORKERS.
``(a) In General.--Payment of a trade adjustment allowance shall be
made to an adversely affected worker covered by a certification under
section 231 who files an application for the allowance for any week of
unemployment that begins more than 60 days after the date on which the
petition that resulted in the certification was filed under section
231, if the following conditions are met:
``(1) Time of total or partial separation from
employment.--The adversely affected worker's total or partial
separation before the worker's application under this chapter
occurred--
``(A) within the period specified in either section
231 (d) (1) or (2);
``(B) before the expiration of the 2-year period
beginning on the date on which the certification under
section 231 was issued; and
``(C) before the termination date (if any)
determined pursuant to section 231(e).
``(2) Employment required.--
``(A) In general.--The adversely affected worker
had, in the 52-week period ending with the week in
which the total or partial separation occurred, at
least 26 weeks of employment at wages of $30 or more a
week with a single firm or subdivision of a firm.
``(B) Unavailability of data.--If data with respect
to weeks of employment with a firm are not available,
the worker had equivalent amounts of employment
computed under regulations prescribed by the Secretary.
``(C) Week of employment.--For the purposes of this
paragraph any week shall be treated as a week of
employment at wages of $30 or more, if an adversely
affected worker--
``(i) is on employer-authorized leave for
purposes of vacation, sickness, injury, or
maternity, or inactive duty training or active
duty for training in the Armed Forces of the
United States;
``(ii) does not work because of a
disability that is compensable under a
workmen's compensation law or plan of a State
or the United States;
``(iii) had employment interrupted in order
to serve as a full-time representative of a
labor organization in that firm or subdivision;
or
``(iv) is on call-up for purposes of active
duty in a reserve status in the Armed Forces of
the United States, provided that active duty is
`Federal service' as defined in section
8521(a)(1) of title 5, United States Code.
``(D) Exceptions.--
``(i) In the case of weeks described in
clause (i) or (iii) of subparagraph (C), or
both, not more than 7 weeks may be treated as
weeks of employment under subparagraph (C).
``(ii) In the case of weeks described in
clause (ii) or (iv) of subparagraph (C), not
more than 26 weeks may be treated as weeks of
employment under subparagraph (C).
``(3) Unemployment compensation.--The adversely affected
worker meets all of the following requirements:
``(A) Entitlement to unemployment insurance.--The
worker was entitled to (or would be entitled to if the
worker applied for) unemployment insurance for a week
within the benefit period--
``(i) in which total or partial separation
took place; or
``(ii) which began (or would have begun) by
reason of the filing of a claim for
unemployment insurance by the worker after
total or partial separation.
``(B) Exhaustion of unemployment insurance.--The
worker has exhausted all rights to any regular State
unemployment insurance to which the worker was entitled
(or would be entitled if the worker had applied for any
regular State unemployment insurance).
``(C) No unexpired waiting period.--The worker does
not have an unexpired waiting period applicable to the
worker for any unemployment insurance.
``(4) Extended unemployment compensation.--The adversely
affected worker, with respect to a week of unemployment, would
not be disqualified for extended compensation payable under the
Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note) by reason of the work acceptance and job
search requirements in section 202(a)(3) of that Act.
``(5) Training.--The adversely affected worker is enrolled
in a training program approved by the Secretary under section
240(a), and the enrollment occurred not later than the latest
of the periods described in subparagraph (A), (B), or (C).
``(A) 16 weeks.--The worker enrolled not later than
the last day of the 16th week after the worker's most
recent total separation that meets the requirements of
paragraphs (1) and (2).
``(B) 8 weeks.--The worker enrolled not later than
the last day of the 8th week after the week in which
the Secretary issues a certification covering the
worker.
``(C) Extenuating circumstances.--Notwithstanding
subparagraphs (A) and (B), the adversely affected
worker is eligible for trade adjustment assistance if
the worker enrolled not later than 45 days after the
later of the dates specified in subparagraph (A) or
(B), and the Secretary determines there are extenuating
circumstances that justify an extension in the
enrollment period.
``(b) Failure To Participate in Training.--
``(1) In general.--Until the adversely affected worker
begins or resumes participation in a training program approved
under section 240(a), no trade adjustment allowance may be paid
under subsection (a) to an adversely affected worker for any
week or any succeeding week in which--
``(A) the Secretary determines that--
``(i) the adversely affected worker--
``(I) has failed to begin
participation in a training program the
enrollment in which meets the
requirement of subsection (a)(5); or
``(II) has ceased to participate in
such a training program before
completing the training program; and
``(ii) there is no justifiable cause for
the failure or cessation; or
``(B) the waiver issued to that worker under
subsection (c)(1) is revoked under subsection (c)(2).
``(2) Exception.--The provisions of subsection (a)(5) and
paragraph (1) shall not apply with respect to any week of
unemployment that begins before the first week following the
week in which the certification is issued under section 231.
``(c) Waivers of Training Requirements.--
``(1) Issuance of waivers.--The Secretary may issue a
written statement to an adversely affected worker waiving the
requirement to be enrolled in training described in subsection
(a) if the Secretary determines that the training requirement
is not feasible or appropriate for the worker, because of 1 or
more of the following reasons:
``(A) Recall.--The worker has been notified that
the worker will be recalled by the firm from which the
separation occurred.
``(B) Marketable skills.--The worker possesses
marketable skills for suitable employment (as
determined pursuant to an assessment of the worker,
which may include the profiling system under section
303(j) of the Social Security Act (42 U.S.C. 503(j)),
carried out in accordance with guidelines issued by the
Secretary) and there is a reasonable expectation of
employment at equivalent wages in the foreseeable
future.
``(C) Retirement.--The worker is within 2 years of
meeting all requirements for entitlement to either--
``(i) old-age insurance benefits under
title II of the Social Security Act (42 U.S.C.
401 et seq.) (except for application
therefore); or
``(ii) a private pension sponsored by an
employer or labor organization.
``(D) Health.--The worker is unable to participate
in training due to the health of the worker, except
that a waiver under this subparagraph shall not be
construed to exempt a worker from requirements relating
to the availability for work, active search for work,
or refusal to accept work under Federal or State
unemployment compensation laws.
``(E) Enrollment unavailable.--The first available
enrollment date for the approved training of the worker
is within 60 days after the date of the determination
made under this paragraph, or, if later, there are
extenuating circumstances for the delay in enrollment,
as determined pursuant to guidelines issued by the
Secretary.
``(F) Training not available.--Training approved by
the Secretary is not reasonably available to the worker
from either governmental agencies or private sources
(which may include area vocational education schools,
as defined in section 3 of the Carl D. Perkins
Vocational and Technical Education Act of 1998 (20
U.S.C. 2302), and employers), no training that is
suitable for the worker is available at a reasonable
cost, or no training funds are available.
``(G) Other.--The Secretary may, at his discretion,
issue a waiver if the Secretary determines that a
worker has set forth in writing reasons other than
those provided for in subparagraphs (A) through (F)
justifying the grant of such waiver.
``(2) Duration of waivers.--
``(A) In general.--A waiver issued under paragraph
(1) shall be effective for not more than 6 months after
the date on which the waiver is issued, unless the
Secretary determines otherwise.
``(B) Revocation.--The Secretary shall revoke a
waiver issued under paragraph (1) if the Secretary
determines that the basis of a waiver is no longer
applicable to the worker.
``(3) Amendments under section 222.--
``(A) Issuance by cooperating states.--Pursuant to
an agreement under section 222, the Secretary may
authorize a cooperating State to issue waivers as
described in paragraph (1).
``(B) Submission of statements.--An agreement under
section 222 shall include a requirement that the
cooperating State submit to the Secretary the written
statements provided under paragraph (1) and a statement
of the reasons for the waiver.
``SEC. 236. WEEKLY AMOUNTS.
``(a) In General.--Subject to subsections (b) and (c), the trade
adjustment allowance payable to an adversely affected worker for a week
of total unemployment shall be an amount equal to the most recent
weekly benefit amount of the unemployment insurance payable to the
worker for a week of total unemployment preceding the worker's first
exhaustion of unemployment insurance (as determined for purposes of
section 235(a)(3)(B)) reduced (but not below zero) by--
``(1) any training allowance deductible under subsection
(c); and
``(2) any income that is deductible from unemployment
insurance under the disqualifying income provisions of the
applicable State law or Federal unemployment insurance law.
``(b) Adjustment for Workers Receiving Training.--
``(1) In general.--Any adversely affected worker who is
entitled to a trade adjustment allowance and who is receiving
training approved by the Secretary, shall receive for each week
in which the worker is undergoing that training, a trade
adjustment allowance in an amount (computed for such week)
equal to the greater of--
``(A) the amount computed under subsection (a); or
``(B) the amount of any weekly allowance for that
training to which the worker would be entitled under
any other Federal law for the training of workers, if
the worker applied for that allowance.
``(2) Allowance paid in lieu of.--Any trade adjustment
allowance calculated under paragraph (1) shall be paid in lieu
of any training allowance to which the worker would be entitled
under any other Federal law.
``(3) Coordination with unemployment insurance.--Any week
in which a worker undergoing training approved by the Secretary
receives payments from unemployment insurance shall be
subtracted from the total number of weeks for which a worker
may receive trade adjustment allowance under this chapter.
``(c) Adjustment for Workers Receiving Allowances Under Other
Federal Law.--
``(1) Reduction in weeks for which allowance will be
paid.--If a training allowance under any Federal law (other
than this Act) is paid to an adversely affected worker for any
week of unemployment with respect to which the worker would be
entitled (determined without regard to any disqualification
under section 235(b)) to a trade adjustment allowance if the
worker applied for that allowance, each week of unemployment
shall be deducted from the total number of weeks of trade
adjustment allowance otherwise payable to that worker under
section 235(a) when the worker applies for a trade adjustment
allowance and is determined to be entitled to the allowance.
``(2) Payment of difference.--If the training allowance
paid to a worker for any week of unemployment is less than the
amount of the trade adjustment allowance to which the worker
would be entitled if the worker applied for the trade
adjustment allowance, the worker shall receive, when the worker
applies for a trade adjustment allowance and is determined to
be entitled to the allowance, a trade adjustment allowance for
that week equal to the difference between the training
allowance and the trade adjustment allowance computed under
subsection (b).
``SEC. 237. LIMITATIONS ON TRADE ADJUSTMENT ALLOWANCES.
``(a) Amount Payable.--The maximum amount of trade adjustment
allowance payable to an adversely affected worker, with respect to the
period covered by any certification, shall be the amount that is the
product of 104 multiplied by the trade adjustment allowance payable to
the worker for a week of total unemployment (as determined under
section 236) reduced by the total sum of the regular State unemployment
insurance to which the worker was entitled (or would have been entitled
if the worker had applied for unemployment insurance) in the worker's
first benefit period described in section 235(a)(3)(A).
``(b) Duration of Payments.--
``(1) In general.--Except as provided in paragraph (2), a
trade adjustment allowance shall not be paid for any week
occurring after the close of the 104-week period that begins
with the first week following the week in which the adversely
affected worker was most recently totally separated--
``(A) within the period that is described in
section 235(a)(1); and
``(B) with respect to which the worker meets the
requirements of section 235(a)(2).
``(2) Special rules.--
``(A) Break in training.--For purposes of this
chapter, a worker shall be treated as participating in
a training program approved by the Secretary under
section 240(a) during any week that is part of a break
in a training that does not exceed 30 days if--
``(i) the worker was participating in a
training program approved under section 240(a)
before the beginning of the break in training;
and
``(ii) the break is provided under the
training program.
``(B) On-the-job training.--No trade adjustment
allowance shall be paid to a worker under this chapter
for any week during which the worker is receiving on-
the-job training, except that a trade adjustment
allowance shall be paid if a worker is enrolled in a
non-paid customized training program.
``(C) Small business administration pilot
program.--An adversely affected worker who is
participating in a self-employment training program
established by the Director of the Small Business
Administration pursuant to section 102 of the Trade
Adjustment Assistance Reform Act of 2002, shall not be
ineligible to receive benefits under this chapter.
``(D) Additional weeks for remedial education.--
Notwithstanding any other provision of this section, in
order to assist an adversely affected worker to
complete training approved for the worker under section
240, if the program is a program of remedial education
in accordance with regulations prescribed by the
Secretary, payments may be made as trade adjustment
allowances for up to 26 additional weeks in the 26-week
period that follows the last week of entitlement to
trade adjustment allowances otherwise payable under
this chapter.
``(c) Adjustment of Amounts Payable.--Amounts payable to an
adversely affected worker under this chapter shall be subject to
adjustment on a week-to-week basis as may be required by section 236.
``(d) Year-End Adjustment.--
``(1) In general.--Notwithstanding any other provision of
this Act or any other provision of law, if the benefit year of
a worker ends within an extended benefit period, the number of
weeks of extended benefits that the worker would, but for this
subsection, be entitled to in that extended benefit period
shall not be reduced by the number of weeks for which the
worker was entitled, during that benefit year, to trade
adjustment allowances under this part.
``(2) Extended benefits period.--For the purpose of this
section the term `extended benefit period' has the same meaning
given that term in the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
``SEC. 238. APPLICATION OF STATE LAWS.
``(a) In General.--Except where inconsistent with the provisions of
this chapter and subject to such regulations as the Secretary may
prescribe, the availability and disqualification provisions of the
State law under which an adversely affected worker is entitled to
unemployment insurance (whether or not the worker has filed a claim for
such insurance), or, if the worker is not so entitled to unemployment
insurance, of the State in which the worker was totally or partially
separated, shall apply to a worker that files an application for trade
adjustment assistance.
``(b) Duration of Applicability.--The State law determined to be
applicable with respect to a separation of an adversely affected worker
shall remain applicable for purposes of subsection (a), with respect to
a separation until the worker becomes entitled to unemployment
insurance under another State law (whether or not the worker has filed
a claim for that insurance).
``PART III--EMPLOYMENT SERVICES, TRAINING, AND OTHER ALLOWANCES
``SEC. 239. EMPLOYMENT SERVICES.
``The Secretary shall, in accordance with section 222 or 223, as
applicable, make every reasonable effort to secure for adversely
affected workers covered by a certification under section 231,
counseling, testing, placement, and other services provided for under
any other Federal law.
``SEC. 240. TRAINING.
``(a) Approved Training Programs.--
``(1) In general.--The Secretary shall approve training
programs that include--
``(A) on-the-job training or customized training;
``(B) any employment or training activity provided
through a one-stop delivery system under chapter 5 of
subtitle B of title I of the Workforce Investment Act
of 1998 (29 U.S.C. 2861 et seq.);
``(C) any program of adult education;
``(D) any training program (other than a training
program described in paragraph (3)) for which all, or
any portion, of the costs of training the worker are
paid--
``(i) under any Federal or State program
other than this chapter; or
``(ii) from any source other than this
section; and
``(E) any other training program that the Secretary
determines is acceptable to meet the needs of an
adversely affected worker.
In making the determination under subparagraph (E), the
Secretary shall consult with interested parties.
``(2) Training agreements.--Before approving any training
to which subsection (f)(1)(C) may apply, the Secretary may
require that the adversely affected worker enter into an
agreement with the Secretary under which the Secretary will not
be required to pay under subsection (b) the portion of the
costs of the training that the worker has reason to believe
will be paid under the program, or by the source, described in
clause (i) or (ii) of subsection (f)(1)(C).
``(3) Limitation on approvals.--The Secretary shall not
approve a training program if all of the following apply:
``(A) Payment by plan.--Any portion of the costs of
the training program are paid under any nongovernmental
plan or program.
``(B) Right to obtain.--The adversely affected
worker has a right to obtain training or funds for
training under that plan or program.
``(C) Reimbursement.--The plan or program requires
the worker to reimburse the plan or program from funds
provided under this chapter, or from wages paid under
the training program, for any portion of the costs of
that training program paid under the plan or program.
``(b) Payment of Training Costs.--
``(1) In general.--Upon approval of a training program
under subsection (a), and subject to the limitations imposed by
this section, an adversely affected worker covered by a
certification issued under section 231 may be eligible to have
payment of the costs of that training, including any costs of
an approved training program incurred by a worker before a
certification was issued under section 231, made on behalf of
the worker by the Secretary directly or through a voucher
system.
``(2) On-the-job training and customized training.--
``(A) Provision of training on the job or
customized training.--If the Secretary approves
training under subsection (a), the Secretary shall,
insofar as possible, provide or assure the provision of
that training on the job or customized training, and
any training on the job or customized training that is
approved by the Secretary under subsection (a) shall
include related education necessary for the acquisition
of skills needed for a position within a particular
occupation.
``(B) Monthly installments.--If the Secretary
approves payment of any on-the-job training or
customized training under subsection (a), the Secretary
shall pay the costs of that training in equal monthly
installments.
``(C) Limitations.--The Secretary may pay the costs
of on-the-job training or customized training only if--
``(i) no employed worker is displaced by
the adversely affected worker (including
partial displacement such as a reduction in the
hours of nonovertime work, wages, or employment
benefits);
``(ii) the training does not impair
contracts for services or collective bargaining
agreements;
``(iii) in the case of training that would
affect a collective bargaining agreement, the
written concurrence of the labor organization
concerned has been obtained;
``(iv) no other individual is on layoff
from the same, or any substantially equivalent,
job for which the adversely affected worker is
being trained;
``(v) the employer has not terminated the
employment of any regular employee or otherwise
reduced the workforce of the employer with the
intention of filling the vacancy so created by
hiring the adversely affected worker;
``(vi) the job for which the adversely
affected worker is being trained is not being
created in a promotional line that will
infringe in any way upon the promotional
opportunities of employed individuals;
``(vii) the training is not for the same
occupation from which the worker was separated
and with respect to which the worker's group
was certified pursuant to section 231;
``(viii) the employer is provided
reimbursement of not more than 50 percent of
the wage rate of the participant, for the cost
of providing the training and additional
supervision related to the training;
``(ix) the employer has not received
payment under subsection (b)(1) with respect to
any other on-the-job training provided by the
employer or customized training that failed to
meet the requirements of clauses (i) through
(vi); and
``(x) the employer has not taken, at any
time, any action that violated the terms of any
certification described in clause (viii) made
by that employer with respect to any other on-
the-job training provided by the employer or
customized training for which the Secretary has
made a payment under paragraph (1).
``(c) Certain Workers Eligible for Training Benefits.--An adversely
affected worker covered by a certification issued under section 231,
who is not qualified to receive a trade adjustment allowance under
section 235, may be eligible to have payment of the costs of training
made under this section, if the worker enters a training program
approved by the Secretary not later than 6 months after the date on
which the certification that covers the worker is issued or the
Secretary determines that one of the following applied:
``(1) Funding was not available at the time at which the
adversely affected worker was required to enter training under
paragraph (1).
``(2) The adversely affected worker was covered by a waiver
issued under section 235(c).
``(d) Exhaustion of Unemployment Insurance Not Required.--The
Secretary may approve training, and pay the costs thereof, for any
adversely affected worker who is a member of a group certified under
section 231 at any time after the date on which the group is certified,
without regard to whether the worker has exhausted all rights to any
unemployment insurance to which the worker is entitled.
``(e) Supplemental Assistance.--
``(1) In general.--Subject to paragraphs (2) and (3), when
training is provided under a training program approved by the
Secretary under subsection (a) in facilities that are not
within commuting distance of a worker's regular place of
residence, the Secretary may authorize supplemental assistance
to defray reasonable transportation and subsistence expenses
for separate maintenance.
``(2) Transportation expenses.--The Secretary may not
authorize payments for travel expenses exceeding the prevailing
mileage rate authorized under the Federal travel regulations.
``(3) Subsistence expenses.--The Secretary may not
authorize payments for subsistence that exceed the lesser of--
``(A) the actual per diem expenses for subsistence
of the worker; or
``(B) an amount equal to 50 percent of the
prevailing per diem allowance rate authorized under
Federal travel regulations.
``(f) Special Provisions; Limitations.--
``(1) Limitation on making payments.--
``(A) Disallowance of other payment.--If the costs
of training an adversely affected worker are paid by
the Secretary under subsection (b), no other payment
for those training costs may be made under any other
provision of Federal law.
``(B) No payment of reimbursable costs.--No payment
for the costs of approved training may be made under
subsection (b) if those costs--
``(i) have already been paid under any
other provision of Federal law; or
``(ii) are reimbursable under any other
provision of Federal law and a portion of those
costs has already been paid under that other
provision of Federal law.
``(C) No payment of costs paid elsewhere.--The
Secretary is not required to pay the costs of any
training approved under subsection (a) to the extent
that those costs are paid under any Federal or State
program other than this chapter.
``(D) Exception.--The provisions of this paragraph
shall not apply to, or take into account, any funds
provided under any other provision of Federal law that
are used for any purpose other than the direct payment
of the costs incurred in training a particular
adversely affected worker, even if the use of those
funds has the effect of indirectly paying for or
reducing any portion of the costs involved in training
the adversely affected worker.
``(2) Unemployment eligibility.--A worker may not be
determined to be ineligible or disqualified for unemployment
insurance or program benefits under this subchapter because the
individual is in training approved under subsection (a),
because of leaving work which is not suitable employment to
enter the training, or because of the application to any week
in training of provisions of State law or Federal unemployment
insurance law relating to availability for work, active search
for work, or refusal to accept work.
``(3) Definition.--For purposes of this section the term
`suitable employment' means, with respect to a worker, work of
a substantially equal or higher skill level than the worker's
past adversely affected employment, and wages for such work at
not less than 80 percent of the worker's average weekly wage.
``(4) Payments after reemployment.--
``(A) In general.--In the case of an adversely
affected worker who secures reemployment, the Secretary
may approve and pay the costs of training (or shall
continue to pay the costs of training previously
approved) for that adversely affected worker, for the
completion of the training program or up to 26 weeks,
whichever is less, after the date the adversely
affected worker becomes reemployed.
``(B) Trade adjustment allowance.--An adversely
affected worker who is reemployed and is undergoing
training approved by the Secretary pursuant to
subparagraph (A) may continue to receive a trade
adjustment allowance, subject to the income offsets
provided for in the worker's State unemployment
compensation law in accordance with the provisions of
section 237.
``(5) Funding.--The total amount of payments that may be
made under this section for any fiscal year shall not exceed
$300,000,000.
``SEC. 240A. JOB TRAINING PROGRAMS.
``(a) Grant Program Authorized.--The Secretary is authorized to
award grants to community colleges (as defined in section 202 of the
Tech-Prep Education Act (20 U.S.C. 2371)) on a competitive basis to
establish job training programs for adversely affected workers.
``(b) Application.--
``(1) Submission.--To receive a grant under this section, a
community college shall submit an application to the Secretary
at such time and in such manner as the Secretary shall require.
``(2) Contents.--The application submitted under paragraph
(1) shall provide a description of--
``(A) the population to be served with grant funds
received under this section;
``(B) how grant funds received under this section
will be expended; and
``(C) the job training programs that will be
established with grant funds received under this
section, including a description of how such programs
relate to workforce needs in the area where the
community college is located.
``(c) Eligibility.--To be eligible to receive a grant under this
section, a community college shall be located in an eligible community
(as defined in section 271).
``(d) Decision on Applications.--Not later than 30 days after
submission of an application under subsection (b), the Secretary shall
approve or disapprove the application.
``(e) Use of Funds.--A community college that receives a grant
under this section shall use the grant funds to establish job training
programs for adversely affected workers.
``SEC. 241. JOB SEARCH ALLOWANCES.
``(a) Job Search Allowance Authorized.--
``(1) In general.--An adversely affected worker covered by
a certification issued under section 231 may file an
application with the Secretary for payment of a job search
allowance.
``(2) Approval of applications.--The Secretary may grant an
allowance pursuant to an application filed under paragraph (1)
when all of the following apply:
``(A) Assist adversely affected worker.--The
allowance is paid to assist an adversely affected
worker who has been totally separated in securing a job
within the United States.
``(B) Local employment not available.--The
Secretary determines that the worker cannot reasonably
be expected to secure suitable employment in the
commuting area in which the worker resides.
``(C) Application.--The worker has filed an
application for the allowance with the Secretary
before--
``(i) the later of--
``(I) the 365th day after the date
of the certification under which the
worker is certified as eligible; or
``(II) the 365th day after the date
of the worker's last total separation;
or
``(ii) the date that is the 182d day after
the date on which the worker concluded
training, unless the worker received a waiver
under section 235(c).
``(b) Amount of Allowance.--
``(1) In general.--An allowance granted under subsection
(a) shall provide reimbursement to the worker of 90 percent of
the cost of necessary job search expenses as prescribed by the
Secretary in regulations.
``(2) Maximum allowance.--Reimbursement under this
subsection may not exceed $1,250 for any worker.
``(3) Allowance for subsistence and transportation.--
Reimbursement under this subsection may not be made for
subsistence and transportation expenses at levels exceeding
those allowable under section 240(e).
``(c) Exception.--Notwithstanding subsection (b), the Secretary
shall reimburse any adversely affected worker for necessary expenses
incurred by the worker in participating in a job search program
approved by the Secretary.
``SEC. 242. RELOCATION ALLOWANCES.
``(a) Relocation Allowance Authorized.--
``(1) In general.--Any adversely affected worker covered by
a certification issued under section 231 may file an
application for a relocation allowance with the Secretary, and
the Secretary may grant the relocation allowance, subject to
the terms and conditions of this section.
``(2) Conditions for granting allowance.--A relocation
allowance may be granted if all of the following terms and
conditions are met:
``(A) Assist an adversely affected worker.--The
relocation allowance will assist an adversely affected
worker in relocating within the United States.
``(B) Local employment not available.--The
Secretary determines that the worker cannot reasonably
be expected to secure suitable employment in the
commuting area in which the worker resides.
``(C) Total separation.--The worker is totally
separated from employment at the time relocation
commences.
``(D) Suitable employment obtained.--The worker--
``(i) has obtained suitable employment
affording a reasonable expectation of long-term
duration in the area in which the worker wishes
to relocate; or
``(ii) has obtained a bona fide offer of
such employment.
``(E) Application.--The worker filed an application
with the Secretary before--
``(i) the later of--
``(I) the 425th day after the date
of the certification under section 231;
or
``(II) the 425th day after the date
of the worker's last total separation;
or
``(ii) the date that is the 182d day after
the date on which the worker concluded
training, unless the worker received a waiver
under section 235(c).
``(b) Amount of Allowance.--The relocation allowance granted to a
worker under subsection (a) includes--
``(1) 90 percent of the reasonable and necessary expenses
(including, but not limited to, subsistence and transportation
expenses at levels not exceeding those allowable under section
240(e)) specified in regulations prescribed by the Secretary,
incurred in transporting the worker, the worker's family, and
household effects; and
``(2) a lump sum equivalent to 3 times the worker's average
weekly wage, up to a maximum payment of $1,250.
``(c) Limitations.--A relocation allowance may not be granted to a
worker unless--
``(1) the relocation occurs within 182 days after the
filing of the application for relocation assistance; or
``(2) the relocation occurs within 182 days after the
conclusion of training, if the worker entered a training
program approved by the Secretary under section 240(a).
``SEC. 243. SUPPORTIVE SERVICES; WAGE INSURANCE.
``(a) Supportive Services.--
``(1) Application.--
``(A) In general.--The State may, on behalf of any
adversely affected worker or group of workers covered
by a certification issued under section 231--
``(i) file an application with the
Secretary for services under section 173 of the
Workforce Investment Act of 1998 (relating to
National Emergency Grants); and
``(ii) provide other services under title I
of the Workforce Investment Act of 1998.
``(B) Services.--The services available under this
paragraph include transportation, child care, and
dependent care that are necessary to enable a worker to
participate in activities authorized under this
chapter.
``(2) Conditions.--The Secretary may approve an application
filed under paragraph (1)(A)(i) and provide supportive services
to an adversely affected worker only if the Secretary
determines that all of the following apply:
``(A) Necessity.--Providing services is necessary
to enable the worker to participate in or complete
training.
``(B) Consistent with workforce investment act.--
The services are consistent with the supportive
services provided to participants under the provisions
relating to dislocated worker employment and training
activities set forth in chapter 5 of subtitle B of
title I of the Workforce Investment Act of 1998 (29
U.S.C. 2861 et seq.).
``(b) Wage Insurance Program.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Trade Adjustment Assistance Reform Act of
2002, the Secretary shall establish, and the States shall
implement, a Wage Insurance Program under which a State shall
use the funds provided to the State for trade adjustment
allowances to pay to an adversely affected worker certified
under section 231 a wage subsidy of up to 50 percent of the
difference between the wages received by the adversely affected
worker from reemployment and the wages received by the
adversely affected worker at the time of separation for a
period not to exceed 2 years.
``(2) Amount of payment.--
``(A) Wages under $40,000.--If the wages the worker
receives from reemployment are less than $40,000 a
year, the wage subsidy shall be 50 percent of the
difference between the amount of the wages received by
the worker from reemployment and the amount of the
wages received by the worker at the time of separation.
``(B) Wages between $40,000 and $50,000.--If the
wages received by the worker from reemployment are
greater than $40,000 a year but less than $50,000 a
year, the wage subsidy shall be 25 percent of the
difference between the amount of the wages received by
the worker from reemployment and the amount of the
wages received by the worker at the time of separation.
``(3) Eligibility.--An adversely affected worker may be
eligible to receive a wage subsidy under this subsection if the
worker--
``(A) enrolls in the Wage Insurance Program;
``(B) obtains reemployment not more than 26 weeks
after the date of separation from the adversely
affected employment;
``(C) is at least 50 years of age;
``(D) earns not more than $50,000 a year in wages
from reemployment;
``(E) is employed on a full-time basis as defined
by State law in the State in which the worker is
employed; and
``(F) does not return to the employment from which
the worker was separated.
``(4) Amount of payments.--The payments made under
paragraph (1) to an adversely affected worker may not exceed
$5,000 a year for each year of the 2-year period.
``(5) Limitation on other benefits.--At the time a worker
begins to receive a wage subsidy under this subsection the
worker shall not be eligible to receive any benefits under this
Act other than the wage subsidy unless the Secretary
determines, pursuant to standards established by the Secretary,
that the worker has shown circumstances that warrant
eligibility for training benefits under section 240.
``(6) Funding.--The total amount of payments that may be
made under this subsection for any fiscal year shall not exceed
$50,000,000.
``(7) Termination.--
``(A) In general.--Except as provided in
subparagraph (B), no payments may be made under this
subsection after the date that is 2 years after the
date on which the program under this subsection is
implemented in the State under paragraph (1).
``(B) Exception.--Notwithstanding subparagraph (A),
a worker receiving payments under this subsection on
the date described in subparagraph (A) shall continue
to receive such payments for as long as the worker
meets the eligibility requirements of this subsection.
``(c) Studies of Assistance Available to Economically Distressed
Workers.--
``(1) Study by the general accounting office.--
``(A) In general.--The Comptroller General of the
United States shall conduct a study of all assistance
provided by the Federal Government for workers facing
job loss and economic distress.
``(B) Report.--Not later than 1 year after the date
of enactment of the Trade Adjustment Assistance Reform
Act of 2002, the Comptroller General shall submit to
the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of
Representatives a report on the study conducted under
subparagraph (A). The report shall include a
description of--
``(i) all Federal programs designed to
assist workers facing job loss and economic
distress, including all benefits and services;
``(ii) eligibility requirements for each of
the programs; and
``(iii) procedures for applying for and
receiving benefits and services under each of
the programs.
``(C) Distribution of gao report.--The report
described in subparagraph (B) shall be distributed to
all one-stop partners authorized under the Workforce
Investment Act of 1998.
``(2) Studies by the states.--
``(A) In general.--Each State may conduct a study
of its assistance programs for workers facing job loss
and economic distress.
``(B) Grants.--The Secretary may award to each
State a grant, not to exceed $50,000, to enable the
State to conduct the study described in subparagraph
(A). Each study shall be undertaken in consultation
with affected parties.
``(C) Report.--Not later than 1 year after the date
of the grant, each State that receives a grant under
subparagraph (B) shall submit to the Committee on
Finance of the Senate and the Committee on Ways and
Means of the House of Representatives the report
described in subparagraph (A).
``(D) Distribution of state reports.--A report
prepared by a State under this paragraph shall be
distributed to all the one-stop partners in the State.
``Subchapter D--Payment and Enforcement Provisions
``SEC. 244. PAYMENTS TO STATES.
``(a) In General.--The Secretary, from time to time, shall certify
to the Secretary of the Treasury for payment to each cooperating State,
the sums necessary to enable that State as agent of the United States
to make payments provided for by this chapter.
``(b) Limitation on Use of Funds.--
``(1) In general.--All money paid to a cooperating State
under this section shall be used solely for the purposes for
which it is paid.
``(2) Return of funds not so used.--Money paid that is not
used for the purpose for which it is paid under subsection (a)
shall be returned to the Secretary of the Treasury at the time
specified in the agreement entered into under section 222.
``(c) Surety Bond.--Any agreement under section 222 may require any
officer or employee of the cooperating State certifying payments or
disbursing funds under the agreement or otherwise participating in the
performance of the agreement, to give a surety bond to the United
States in an amount the Secretary deems necessary, and may provide for
the payment of the cost of that bond from funds for carrying out the
purposes of this chapter.
``SEC. 245. LIABILITIES OF CERTIFYING AND DISBURSING OFFICERS.
``(a) Liability of Certifying Officials.--No person designated by
the Secretary, or designated pursuant to an agreement entered into
under section 222, as a certifying officer, in the absence of gross
negligence or intent to defraud the United States, shall be liable with
respect to any payment certified by that person under this chapter.
``(b) Liability of Disbursing Officers.--No disbursing officer, in
the absence of gross negligence or intent to defraud the United States,
shall be liable with respect to any payment by that officer under this
chapter if the payment was based on a voucher signed by a certifying
officer designated according to subsection (a).
``SEC. 246. FRAUD AND RECOVERY OF OVERPAYMENTS.
``(a) In General.--
``(1) Overpayment.--If a cooperating State, the Secretary,
or a court of competent jurisdiction determines that any person
has received any payment under this chapter to which the person
was not entitled, including a payment referred to in subsection
(b), that person shall be liable to repay that amount to the
cooperating State or the Secretary, as the case may be.
``(2) Exception.--The cooperating State or the Secretary
may waive repayment if the cooperating State or the Secretary
determines, in accordance with guidelines prescribed by the
Secretary, that all of the following apply:
``(A) No fault.--The payment was made without fault
on the part of the person.
``(B) Repayment contrary to equity.--Requiring
repayment would be contrary to equity and good
conscience.
``(3) Procedure for recovery.--
``(A) Recovery from other allowances authorized.--
Unless an overpayment is otherwise recovered or waived
under paragraph (2), the cooperating State or the
Secretary shall recover the overpayment by deductions
from any sums payable to that person under this
chapter, under any Federal unemployment compensation
law administered by the cooperating State or the
Secretary, or under any other Federal law administered
by the cooperating State or the Secretary that provides
for the payment of assistance or an allowance with
respect to unemployment.
``(B) Recovery from state allowances authorized.--
Notwithstanding any other provision of Federal or State
law, the Secretary may require a cooperating State to
recover any overpayment under this chapter by deduction
from any unemployment insurance payable to that person
under State law, except that no single deduction under
this paragraph shall exceed 50 percent of the amount
otherwise payable.
``(b) Ineligibility for Further Payments.--Any person, in addition
to any other penalty provided by law, shall be ineligible for any
further payments under this chapter if a cooperating State, the
Secretary, or a court of competent jurisdiction determines that one of
the following applies:
``(1) False statement.--The person knowingly made, or
caused another to make, a false statement or representation of
a material fact, and as a result of the false statement or
representation, the person received any payment under this
chapter to which the person was not entitled.
``(2) Failure to disclose.--The person knowingly failed, or
caused another to fail, to disclose a material fact, and as a
result of the nondisclosure, the person received any payment
under this chapter to which the person was not entitled.
``(c) Hearing.--Except for overpayments determined by a court of
competent jurisdiction, no repayment may be required, and no deduction
may be made, under this section until a determination under subsection
(a) by the cooperating State or the Secretary, as the case may be, has
been made, notice of the determination and an opportunity for a fair
hearing has been given to the person concerned, and the determination
has become final.
``(d) Recovered Funds.--Any amount recovered under this section
shall be returned to the Treasury of the United States.
``SEC. 247. CRIMINAL PENALTIES.
``Whoever makes a false statement of a material fact knowing it to
be false, or knowingly fails to disclose a material fact, for the
purpose of obtaining or increasing for that person or for any other
person any payment authorized to be furnished under this chapter or
pursuant to an agreement under section 222 shall be fined not more than
$10,000, imprisoned for not more than 1 year, or both.
``SEC. 248. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Department of
Labor, for the period beginning October 1, 2001, and ending September
30, 2007, such sums as may be necessary to carry out the purposes of
this chapter, including such additional sums for administrative
expenses as may be necessary for the department to meet the increased
workload created by the Trade Adjustment Assistance Reform Act of 2002,
provided that funding provided for training services shall not be used
for expenses of administering the trade adjustment assistance for
workers program. Amounts appropriated under this section shall remain
available until expended.
``SEC. 249. REGULATIONS.
``The Secretary shall prescribe such regulations as may be
necessary to carry out the provisions of this chapter.
``SEC. 250. SUBPOENA POWER.
``(a) In General.--The Secretary may require by subpoena the
attendance of witnesses and the production of evidence necessary to
make a determination under the provisions of this chapter.
``(b) Court Order.--If a person refuses to obey a subpoena issued
under subsection (a), a competent United States district court, upon
petition by the Secretary, may issue an order requiring compliance with
such subpoena.''.
SEC. 112. DISPLACED WORKER SELF-EMPLOYMENT TRAINING PILOT PROGRAM.
(a) Establishment.--Not later than 6 months after the date of
enactment of this Act, the Administrator of the Small Business
Administration (in this section referred to as the ``Administrator'')
shall establish a self-employment training program (in this section
referred to as the ``Program'') for adversely affected workers (as
defined in chapter 2 of title II of the Trade Act of 1974), to be
administered by the Small Business Administration.
(b) Eligibility for Assistance.--If an adversely affected worker
seeks or receives assistance through the Program, such action shall not
affect the eligibility of that worker to receive benefits under chapter
2 of title II of the Trade Act of 1974.
(c) Training Assistance.--The Program shall include, at a minimum,
training in--
(1) pre-business startup planning;
(2) awareness of basic credit practices and credit
requirements; and
(3) developing business plans, financial packages, and
credit applications.
(d) Outreach.--The Program should include outreach to adversely
affected workers and counseling and lending partners of the Small
Business Administration.
(e) Reports to Congress.--Beginning not later than 180 days after
the date of enactment of this Act, the Administrator shall submit
quarterly reports to the Committee on Finance and the Committee on
Small Business and Entrepreneurship of the Senate and the Committee on
Ways and Means and the Committee on Small Business of the House of
Representatives regarding the implementation of the Program, including
Program delivery, staffing, and administrative expenses related to such
implementation.
(f) Guidelines.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall issue such guidelines as
the Administrator determines to be necessary to carry out the Program.
(g) Effective Date.--The Program shall terminate 3 years after the
date of final publication of guidelines under subsection (f).
TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS
SEC. 201. REAUTHORIZATION OF PROGRAM.
(a) In General.--Section 256(b) of chapter 3 of title II 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 fiscal years 2002 through 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.''.
(b) Eligibility Criteria.--Section 251(c) of chapter 3 of title II
of the Trade Act of 1974 (19 U.S.C. 2341(c)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) The Secretary shall certify a firm (including any
agricultural firm) as eligible to apply for adjustment
assistance under this chapter if the Secretary determines that
a significant number or proportion of the workers in such firm
have become totally or partially separated, or are threatened
to become totally or partially separated, and that either--
``(A)(i)(I) sales or production, or both, of the
firm have decreased absolutely, or
``(II) sales or production, or both, of an article
that accounted for not less than 25 percent of the
total production or sales of the firm during the 12-
month period for which data are available have
decreased absolutely; and
``(ii) increases in the value or volume of imports
of articles like or directly competitive with articles
which are produced by such firm contributed importantly
to such total or partial separation, or threat thereof,
and to such decline in sales or production; or
``(B) a shift in production by the workers' firm or
subdivision to a foreign country of articles like or
directly competitive with articles which are produced
by that firm or subdivision contributed importantly to
the workers' separation or threat of separation.''; and
(2) in paragraph (2), by striking ``paragraph (1)(C)'' and
inserting ``paragraph (1)''.
TITLE III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES
SEC. 301. PURPOSE.
The purpose of this title 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. 302. 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 enactment of
the Trade Adjustment Assistance Reform Act of 2002, there shall be
established in the Office of Economic Adjustment of 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 both of the following conditions applies:
``(1) Number of job losses.--The Director finds that--
``(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 finds
that 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 to
promote the strategic plan within the community and ensure
coordination and cooperation among all stakeholders; and
``(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.
``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.
``(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; and
``(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.
``SEC. 278. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Department of
Commerce, for the period beginning October 1, 2001, and ending
September 30, 2007, 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 enactment of the Trade Adjustment Assistance Reform Act of
2002, 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 title.
``(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.''.
TITLE IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
SEC. 401. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.
(a) In General.--Title II of the Trade Act of 1974 (19 U.S.C. 2251
et seq.) is amended by adding at the end the following new chapter:
``CHAPTER 6--ADJUSTMENT ASSISTANCE FOR FARMERS
``SEC. 291. DEFINITIONS.
``In this chapter:
``(1) Agricultural commodity.--The term `agricultural
commodity' means any agricultural commodity (including
livestock), except fish as defined in section 299(1) of this
Act, in its raw or natural state.
``(2) Agricultural commodity producer.--The term
`agricultural commodity producer' has the same meaning as the
term `person' as prescribed by regulations promulgated under
section 1001(5) of the Food Security Act of 1985 (7 U.S.C.
1308(5)). The term does not include any person described in
section 299(2) of this Act.
``(3) Contributed importantly.--
``(A) In general.--The term `contributed
importantly' means a cause which is important but not
necessarily more important than any other cause.
``(B) Determination of contributed importantly.--
The determination of whether imports of articles like
or directly competitive with an agricultural commodity
with respect to which a petition under this chapter was
filed contributed importantly to a decline in the price
of the agricultural commodity shall be made by the
Secretary.
``(4) Duly authorized representative.--The term `duly
authorized representative' means an association of agricultural
commodity producers.
``(5) National average price.--The term `national average
price' means the national average price paid to an agricultural
commodity producer for an agricultural commodity in a marketing
year as determined by the Secretary.
``(6) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 292. PETITIONS; GROUP ELIGIBILITY.
``(a) In General.--A petition for a certification of eligibility to
apply for adjustment assistance under this chapter may be filed with
the Secretary by a group of agricultural commodity producers or by
their duly authorized representative. Upon receipt of the petition, the
Secretary shall promptly publish notice in the Federal Register that
the Secretary has received the petition and initiated an investigation.
``(b) Hearings.--If the petitioner, or any other person found by
the Secretary to have a substantial interest in the proceedings,
submits not later than 10 days after the date of the Secretary's
publication under subsection (a) a request for a hearing, the Secretary
shall provide for a public hearing and afford such interested person an
opportunity to be present, to produce evidence, and to be heard.
``(c) Group Eligibility Requirements.--The Secretary shall certify
a group of agricultural commodity producers as eligible to apply for
adjustment assistance under this chapter if the Secretary determines--
``(1) that the national average price for the agricultural
commodity, or a class of goods within the agricultural
commodity, produced by the group for the most recent marketing
year for which the national average price is available is less
than 80 percent of the average of the national average price
for such agricultural commodity, or such class of goods, for
the 5 marketing years preceding the most recent marketing year;
and
``(2) that increases in imports of articles like or
directly competitive with the agricultural commodity, or class
of goods within the agricultural commodity, produced by the
group contributed importantly to the decline in price described
in paragraph (1).
``(d) Special Rule for Qualified Subsequent Years.--A group of
agricultural commodity producers certified as eligible under section
293 shall be eligible to apply for assistance under this chapter in any
qualified year after the year the group is first certified, if the
Secretary determines that--
``(1) the national average price for the agricultural
commodity, or class of goods within the agricultural commodity,
produced by the group for the most recent marketing year for
which the national average price is available is equal to or
less than the price determined under subsection (c)(1); and
``(2) the requirements of subsection (c)(2) are met.
``(e) Determination of Qualified Year and Commodity.--In this
chapter:
``(1) Qualified year.--The term `qualified year', with
respect to a group of agricultural commodity producers
certified as eligible under section 293, means each consecutive
year after the year in which the group is certified that the
Secretary makes the determination under subsection (c) or (d),
as the case may be.
``(2) Classes of goods within a commodity.--In any case in
which there are separate classes of goods within an
agricultural commodity, the Secretary shall treat each class as
a separate commodity in determining group eligibility, the
national average price, and level of imports under this section
and section 296.
``SEC. 293. DETERMINATIONS BY SECRETARY OF AGRICULTURE.
``(a) In General.--As soon as practicable after the date on which a
petition is filed under section 292, but in any event not later than 40
days after that date, the Secretary shall determine whether the
petitioning group meets the requirements of section 292 (c) or (d), as
the case may be, and shall, if the group meets the requirements, issue
a certification of eligibility to apply for assistance under this
chapter covering agricultural commodity producers in any group that
meets the requirements. Each certification shall specify the date on
which eligibility under this chapter begins.
``(b) Notice.--Upon making a determination on a petition, the
Secretary shall promptly publish a summary of the determination in the
Federal Register, together with the Secretary's reasons for making the
determination.
``(c) Termination of Certification.--Whenever the Secretary
determines, with respect to any certification of eligibility under this
chapter, that the decline in price for the agricultural commodity
covered by the certification is no longer attributable to the
conditions described in section 292, the Secretary shall terminate such
certification and promptly cause notice of such termination to be
published in the Federal Register, together with the Secretary's
reasons for making such determination.
``SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN INTERNATIONAL TRADE
COMMISSION BEGINS INVESTIGATION.
``(a) In General.--Whenever the International Trade Commission (in
this chapter referred to as the `Commission') begins an investigation
under section 202 with respect to an agricultural commodity, the
Commission shall immediately notify the Secretary of the investigation.
Upon receipt of the notification, the Secretary shall immediately
conduct a study of--
``(1) the number of agricultural commodity producers
producing a like or directly competitive agricultural commodity
who have been or are likely to be certified as eligible for
adjustment assistance under this chapter, and
``(2) the extent to which the adjustment of such producers
to the import competition may be facilitated through the use of
existing programs.
``(b) Report.--Not later than 15 days after the day on which the
Commission makes its report under section 202(f), the Secretary shall
submit a report to the President setting forth the findings of the
study described in subsection (a). Upon making the report to the
President, the Secretary shall also promptly make the report public
(with the exception of information which the Secretary determines to be
confidential) and shall have a summary of the report published in the
Federal Register.
``SEC. 295. BENEFIT INFORMATION TO AGRICULTURAL COMMODITY PRODUCERS.
``(a) In General.--The Secretary shall provide full information to
producers about the benefit allowances, training, and other employment
services available under this title and about the petition and
application procedures, and the appropriate filing dates, for such
allowances, training, and services. The Secretary shall provide
whatever assistance is necessary to enable groups to prepare petitions
or applications for program benefits under this title.
``(b) Notice of Benefits.--
``(1) In general.--The Secretary shall mail written notice
of the benefits available under this chapter to each
agricultural commodity producer that the Secretary has reason
to believe is covered by a certification made under this
chapter.
``(2) Other notice.--The Secretary shall publish notice of
the benefits available under this chapter to agricultural
commodity producers that are covered by each certification made
under this chapter in newspapers of general circulation in the
areas in which such producers reside.
``(3) Other federal assistance.--The Secretary shall also
provide information concerning procedures for applying for and
receiving all other Federal assistance and services available
to workers facing economic distress.
``SEC. 296. QUALIFYING REQUIREMENTS FOR AGRICULTURAL COMMODITY
PRODUCERS.
``(a) In General.--
``(1) Requirements.--Payment of a trade adjustment
allowance shall be made to an adversely affected agricultural
commodity producer covered by a certification under this
chapter who files an application for such allowance within 90
days after the date on which the Secretary makes a
determination and issues a certification of eligibility under
section 293, if the following conditions are met:
``(A) The producer submits to the Secretary
sufficient information to establish the amount of
agricultural commodity covered by the application filed
under subsection (a) that was produced by the producer
in the most recent year.
``(B) The producer certifies that the producer has
not received cash benefits under any provision of this
title other than this chapter.
``(C) The producer's net farm income (as determined
by the Secretary) for the most recent year is less than
the producer's net farm income for the latest year in
which no adjustment assistance was received by the
producer under this chapter.
``(D) The producer certifies that the producer has
met with an Extension Service employee or agent to
obtain, at no cost to the producer, information and
technical assistance that will assist the producer in
adjusting to import competition with respect to the
adversely affected agricultural commodity, including--
``(i) information regarding the feasibility
and desirability of substituting 1 or more
alternative commodities for the adversely
affected agricultural commodity; and
``(ii) technical assistance that will
improve the competitiveness of the production
and marketing of the adversely affected
agricultural commodity by the producer,
including yield and marketing improvements.
``(2) Limitation.--
``(A) In general.--Notwithstanding any other
provision of this chapter, an agricultural commodity
producer shall not be eligible for assistance under
this chapter in any year in which the average adjusted
gross income of the producer exceeds $2,500,000.
``(B) Certification.--To comply with the limitation
under subparagraph (A), an individual or entity shall
provide to the Secretary--
``(i) a certification by a certified public
accountant or another third party that is
acceptable to the Secretary that the average
adjusted gross income of the producer does not
exceed $2,500,000; or
``(ii) information and documentation
regarding the adjusted gross income of the
producer through other procedures established
by the Secretary.
``(C) Definitions.--In this subsection:
``(i) Adjusted gross income.--The term
`adjusted gross income' means adjusted gross
income of an agricultural commodity producer--
``(I) as defined in section 62 of
the Internal Revenue Code of 1986 and
implemented in accordance with
procedures established by the
Secretary; and
``(II) that is earned directly or
indirectly from all agricultural and
nonagricultural sources of an
individual or entity for a fiscal or
corresponding crop year.
``(ii) Average adjusted gross income.--
``(I) In general.--The term
`average adjusted gross income' means
the average adjusted gross income of a
producer for each of the 3 preceding
taxable years.
``(II) Effective adjusted gross
income.--In the case of a producer that
does not have an adjusted gross income
for each of the 3 preceding taxable
years, the Secretary shall establish
rules that provide the producer with an
effective adjusted gross income for the
applicable year.
``(b) Amount of Cash Benefits.--
``(1) In general.--Subject to the provisions of section
298, an adversely affected agricultural commodity producer
described in subsection (a) shall be entitled to adjustment
assistance under this chapter in an amount equal to the product
of--
``(A) one-half of the difference between--
``(i) an amount equal to 80 percent of the
average of the national average price of the
agricultural commodity covered by the
application described in subsection (a) for the
5 marketing years preceding the most recent
marketing year, and
``(ii) the national average price of the
agricultural commodity for the most recent
marketing year, and
``(B) the amount of the agricultural commodity
produced by the agricultural commodity producer in the
most recent marketing year.
``(2) Special rule for subsequent qualified years.--The
amount of cash benefits for a qualified year shall be
determined in the same manner as cash benefits are determined
under paragraph (1) except that the average national price of
the agricultural commodity shall be determined under paragraph
(1)(A)(i) by using the 5-marketing-year period used to
determine the amount of cash benefits for the first
certification.
``(c) Maximum Amount of Cash Assistance.--The maximum amount of
cash benefits an agricultural commodity producer may receive in any 12-
month period shall not exceed $10,000.
``(d) Limitations on Other Assistance.--An agricultural commodity
producer entitled to receive a cash benefit under this chapter--
``(1) shall not be eligible for any other cash benefit
under this title, and
``(2) shall be entitled to employment services and training
benefits under part III of subchapter C of chapter 2.
``SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS.
``(a) In General.--
``(1) Repayment.--If the Secretary, or a court of competent
jurisdiction, determines that any person has received any
payment under this chapter to which the person was not
entitled, such person shall be liable to repay such amount to
the Secretary, except that the Secretary may waive such
repayment if the Secretary determines, in accordance with
guidelines prescribed by the Secretary, that--
``(A) the payment was made without fault on the
part of such person; and
``(B) requiring such repayment would be contrary to
equity and good conscience.
``(2) Recovery of overpayment.--Unless an overpayment is
otherwise recovered, or waived under paragraph (1), the
Secretary shall recover the overpayment by deductions from any
sums payable to such person under this chapter.
``(b) False Statement.--A person shall, in addition to any other
penalty provided by law, be ineligible for any further payments under
this chapter--
``(1) if the Secretary, or a court of competent
jurisdiction, determines that the person--
``(A) knowingly has made, or caused another to
make, a false statement or representation of a material
fact; or
``(B) knowingly has failed, or caused another to
fail, to disclose a material fact; and
``(2) as a result of such false statement or
representation, or of such nondisclosure, such person has
received any payment under this chapter to which the person was
not entitled.
``(c) Notice and Determination.--Except for overpayments determined
by a court of competent jurisdiction, no repayment may be required, and
no deduction may be made, under this section until a determination
under subsection (a)(1) by the Secretary has been made, notice of the
determination and an opportunity for a fair hearing thereon has been
given to the person concerned, and the determination has become final.
``(d) Payment to Treasury.--Any amount recovered under this section
shall be returned to the Treasury of the United States.
``(e) Penalties.--Whoever makes a false statement of a material
fact knowing it to be false, or knowingly fails to disclose a material
fact, for the purpose of obtaining or increasing for himself or for any
other person any payment authorized to be furnished under this chapter
shall be fined not more than $10,000 or imprisoned for not more than 1
year, or both.
``SEC. 298. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated and
there are appropriated to the Department of Agriculture not to exceed
$90,000,000 for each of the fiscal years 2002 through 2007 to carry out
the purposes of this chapter.
``(b) Proportionate Reduction.--If in any year, the amount
appropriated under this chapter is insufficient to meet the
requirements for adjustment assistance payable under this chapter, the
amount of assistance payable under this chapter shall be reduced
proportionately.''.
(b) Effective Date.--The amendments made by this title shall take
effect on the date that is 180 days after the date of enactment of this
Act.
TITLE V--TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN
SEC. 501. TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN.
(a) In General.--Title II of the Trade Act of 1974 (19 U.S.C. 2251
et seq.), as amended by title IV of this Act, is amended by adding at
the end the following new chapter:
``CHAPTER 7--ADJUSTMENT ASSISTANCE FOR FISHERMEN
``SEC. 299. DEFINITIONS.
``In this chapter:
``(1) Commercial fishing, fish, fishery, fishing, fishing
vessel, person, and united states fish processor.--The terms
`commercial fishing', `fish', `fishery', `fishing', `fishing
vessel', `person', and `United States fish processor' have the
same meanings as such terms have in the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1802).
``(2) Producer.--The term `producer' means any person who--
``(A) is engaged in commercial fishing; or
``(B) is a United States fish processor.
``(3) Contributed importantly.--
``(A) In general.--The term `contributed
importantly' means a cause which is important but not
necessarily more important than any other cause.
``(B) Determination of contributed importantly.--
The determination of whether imports of articles like
or directly competitive with a fish caught through
commercial fishing or processed by a United States fish
processor with respect to which a petition under this
chapter was filed contributed importantly to a decline
in the price of the fish shall be made by the
Secretary.
``(4) Duly authorized representative.--The term `duly
authorized representative' means an association of producers.
``(5) National average price.--The term `national average
price' means the national average price paid to a producer for
fish in a marketing year as determined by the Secretary.
``(6) Secretary.--The term `Secretary' means the Secretary
of Commerce.
``(7) Trade adjustment assistance center.--The term `Trade
Adjustment Assistance Center' shall have the same meaning as
such term has in section 253.
``SEC. 299A. PETITIONS; GROUP ELIGIBILITY.
``(a) In General.--A petition for a certification of eligibility to
apply for adjustment assistance under this chapter may be filed with
the Secretary by a group of producers or by their duly authorized
representative. Upon receipt of the petition, the Secretary shall
promptly publish notice in the Federal Register that the Secretary has
received the petition and initiated an investigation.
``(b) Hearings.--If the petitioner, or any other person found by
the Secretary to have a substantial interest in the proceedings,
submits not later than 10 days after the date of the Secretary's
publication under subsection (a) a request for a hearing, the Secretary
shall provide for a public hearing and afford such interested person an
opportunity to be present, to produce evidence, and to be heard.
``(c) Group Eligibility Requirements.--The Secretary shall certify
a group of producers as eligible to apply for adjustment assistance
under this chapter if the Secretary determines--
``(1) that the national average price for the fish, or a
class of fish, produced by the group for the most recent
marketing year for which the national average price is
available is less than 80 percent of the average of the
national average price for such fish, or such class of fish,
for the 5 marketing years preceding the most recent marketing
year; and
``(2) that increases in imports of articles like or
directly competitive with the fish, or class of fish, produced
by the group contributed importantly to the decline in price
described in paragraph (1).
``(d) Special Rule for Qualified Subsequent Years.--A group of
producers certified as eligible under section 299B shall be eligible to
apply for assistance under this chapter in any qualified year after the
year the group is first certified, if the Secretary determines that--
``(1) the national average price for the fish, or class of
fish, produced by the group for the most recent marketing year
for which the national average price is available is equal to
or less than the price determined under subsection (c)(1); and
``(2) the requirements of subsection (c)(2) are met.
``(e) Determination of Qualified Year and Commodity.--In this
chapter:
``(1) Qualified year.--The term `qualified year', with
respect to a group of producers certified as eligible under
section 299B, means each consecutive year after the year in
which the group is certified that the Secretary makes the
determination under subsection (c) or (d), as the case may be.
``(2) Classes of goods within a commodity.--In any case in
which there are separate classes of fish, the Secretary shall
treat each class as a separate commodity in determining group
eligibility, the national average price, and level of imports
under this section and section 299E.
``SEC. 299B. DETERMINATIONS BY SECRETARY.
``(a) In General.--As soon as practicable after the date on which a
petition is filed under section 299A, but in any event not later than
40 days after that date, the Secretary shall determine whether the
petitioning group meets the requirements of section 299A (c) or (d), as
the case may be, and shall, if the group meets the requirements, issue
a certification of eligibility to apply for assistance under this
chapter covering producers in any group that meets the requirements.
Each certification shall specify the date on which eligibility under
this chapter begins.
``(b) Notice.--Upon making a determination on a petition, the
Secretary shall promptly publish a summary of the determination in the
Federal Register, together with the Secretary's reasons for making the
determination.
``(c) Termination of Certification.--Whenever the Secretary
determines, with respect to any certification of eligibility under this
chapter, that the decline in price for the fish covered by the
certification is no longer attributable to the conditions described in
section 299A, the Secretary shall terminate such certification and
promptly cause notice of such termination to be published in the
Federal Register, together with the Secretary's reasons for making such
determination.
``SEC. 299C. STUDY BY SECRETARY WHEN INTERNATIONAL TRADE COMMISSION
BEGINS INVESTIGATION.
``(a) In General.--Whenever the International Trade Commission (in
this chapter referred to as the `Commission') begins an investigation
under section 202 with respect to a fish, the Commission shall
immediately notify the Secretary of the investigation. Upon receipt of
the notification, the Secretary shall immediately conduct a study of--
``(1) the number of producers producing a like or directly
competitive agricultural commodity who have been or are likely
to be certified as eligible for adjustment assistance under
this chapter, and
``(2) the extent to which the adjustment of such producers
to the import competition may be facilitated through the use of
existing programs.
``(b) Report.--Not later than 15 days after the day on which the
Commission makes its report under section 202(f), the Secretary shall
submit a report to the President setting forth the findings of the
study under subsection (a). Upon making his report to the President,
the Secretary shall also promptly make the report public (with the
exception of information which the Secretary determines to be
confidential) and shall have a summary of it published in the Federal
Register.
``SEC. 299D. BENEFIT INFORMATION TO PRODUCERS.
``(a) In General.--The Secretary shall provide full information to
producers about the benefit allowances, training, and other employment
services available under this title and about the petition and
application procedures, and the appropriate filing dates, for such
allowances, training, and services. The Secretary shall provide
whatever assistance is necessary to enable groups to prepare petitions
or applications for program benefits under this title.
``(b) Notice of Benefits.--
``(1) In general.--The Secretary shall mail written notice
of the benefits available under this chapter to each producer
that the Secretary has reason to believe is covered by a
certification made under this chapter.
``(2) Other notice.--The Secretary shall publish notice of
the benefits available under this chapter to producers that are
covered by each certification made under this chapter in
newspapers of general circulation in the areas in which such
producers reside.
``SEC. 299E. QUALIFYING REQUIREMENTS FOR PRODUCERS.
``(a) In General.--Payment of a trade adjustment allowance shall be
made to an adversely affected producer covered by a certification under
this chapter who files an application for such allowance within 90 days
after the date on which the Secretary makes a determination and issues
a certification of eligibility under section 299B, if the following
conditions are met:
``(1) The producer submits to the Secretary sufficient
information to establish the amount of fish covered by the
application filed under subsection (a) that was produced by the
producer in the most recent year.
``(2) The producer certifies that the producer has not
received cash benefits under any provision of this title other
than this chapter.
``(3) The producer's net fishing or processing income (as
determined by the Secretary) for the most recent year is less
than the producer's net fishing or processing income for the
latest year in which no adjustment assistance was received by
the producer under this chapter.
``(4) The producer certifies that--
``(A) the producer has met with an employee or
agent from a Trade Adjustment Assistance Center to
obtain, at no cost to the producer, information and
technical assistance that will assist the producer in
adjusting to import competition with respect to the
adversely affected fish, including--
``(i) information regarding the feasibility
and desirability of substituting 1 or more
alternative fish for the adversely affected
fish; and
``(ii) technical assistance that will
improve the competitiveness of the production
and marketing of the adversely affected fish by
the producer, including yield and marketing
improvements; and
``(B) none of the benefits will be used to
purchase, lease, or finance any new fishing vessel, add
capacity to any fishery, or otherwise add to the
overcapitalization of any fishery.
``(b) Amount of Cash Benefits.--
``(1) In general.--Subject to the provisions of section
299G, an adversely affected producer described in subsection
(a) shall be entitled to adjustment assistance under this
chapter in an amount equal to the product of--
``(A) one-half of the difference between--
``(i) an amount equal to 80 percent of the
average of the national average price of the
fish covered by the application described in
subsection (a) for the 5 marketing years
preceding the most recent marketing year; and
``(ii) the national average price of the
fish for the most recent marketing year; and
``(B) the amount of the fish produced by the
producer in the most recent marketing year.
``(2) Special rule for subsequent qualified years.--The
amount of cash benefits for a qualified year shall be
determined in the same manner as cash benefits are determined
under paragraph (1) except that the average national price of
the fish shall be determined under paragraph (1)(A)(i) by using
the 5-marketing-year period used to determine the amount of
cash benefits for the first certification. A producer shall
only be eligible for benefits for subsequent qualified years if
the Secretary or his designee determines that sufficient
progress has been made implementing the plans developed under
section 299E(a)(4) of this title.
``(c) Maximum Amount of Cash Assistance.--The maximum amount of
cash benefits a producer may receive in any 12-month period shall not
exceed $10,000.
``(d) Limitations on Other Assistance.--A producer entitled to
receive a cash benefit under this chapter--
``(1) shall not be eligible for any other cash benefit
under this title, and
``(2) shall be entitled to employment services and training
benefits under part III of subchapter C of chapter 2.
``SEC. 299F. FRAUD AND RECOVERY OF OVERPAYMENTS.
``(a) In General.--
``(1) Repayment.--If the Secretary, or a court of competent
jurisdiction, determines that any person has received any
payment under this chapter to which the person was not
entitled, such person shall be liable to repay such amount to
the Secretary, except that the Secretary may waive such
repayment if the Secretary determines, in accordance with
guidelines prescribed by the Secretary, that--
``(A) the payment was made without fault on the
part of such person; and
``(B) requiring such repayment would be contrary to
equity and good conscience.
``(2) Recovery of overpayment.--Unless an overpayment is
otherwise recovered, or waived under paragraph (1), the
Secretary shall recover the overpayment by deductions from any
sums payable to such person under this chapter.
``(b) False Statement.--A person shall, in addition to any other
penalty provided by law, be ineligible for any further payments under
this chapter--
``(1) if the Secretary, or a court of competent
jurisdiction, determines that the person--
``(A) knowingly has made, or caused another to
make, a false statement or representation of a material
fact; or
``(B) knowingly has failed, or caused another to
fail, to disclose a material fact; and
``(2) as a result of such false statement or
representation, or of such nondisclosure, such person has
received any payment under this chapter to which the person was
not entitled.
``(c) Notice and Determination.--Except for overpayments determined
by a court of competent jurisdiction, no repayment may be required, and
no deduction may be made, under this section until a determination
under subsection (a)(1) by the Secretary has been made, notice of the
determination and an opportunity for a fair hearing thereon has been
given to the person concerned, and the determination has become final.
``(d) Payment to Treasury.--Any amount recovered under this section
shall be returned to the Treasury of the United States.
``(e) Penalties.--Whoever makes a false statement of a material
fact knowing it to be false, or knowingly fails to disclose a material
fact, for the purpose of obtaining or increasing for himself or for any
other person any payment authorized to be furnished under this chapter
shall be fined not more than $10,000 or imprisoned for not more than 1
year, or both.
``SEC. 299G. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated and
there are appropriated to the Department of Commerce not to exceed
$10,000,000 for each of the fiscal years 2002 through 2007 to carry out
the purposes of this chapter.
``(b) Proportionate Reduction.--If in any year, the amount
appropriated under this chapter is insufficient to meet the
requirements for adjustment assistance payable under this chapter, the
amount of assistance payable under this chapter shall be reduced
proportionately.''.
(b) Effective Date.--The amendments made by this title shall take
effect on the date that is 180 days after the date of enactment of this
Act.
TITLE VI--HEALTH CARE COVERAGE OPTIONS FOR WORKERS ELIGIBLE FOR TRADE
ADJUSTMENT ASSISTANCE
SEC. 601. TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 (relating to abatements, credits, and refunds) is amended
by inserting after section 6428 the following new section:
``SEC. 6429. TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.
``(a) 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 70 percent of the amount paid during the taxable year for
coverage for the taxpayer, the taxpayer's spouse, and dependents of the
taxpayer under qualified health insurance during eligible coverage
months.
``(b) Eligible Coverage Month.--For purposes of this section--
``(1) In general.--The term `eligible coverage month' means
any month if, as of the first day of such month--
``(A) the taxpayer is an eligible individual,
``(B) the taxpayer is covered by qualified health
insurance,
``(C) the premium for coverage under such insurance
for such month is paid by the taxpayer, and
``(D) the taxpayer does not have other specified
coverage.
``(2) Special rules.--
``(A) Joint returns.--In the case of a joint
return, the requirements of paragraph (1) shall be
treated as met if at least 1 spouse satisfies such
requirements.
``(B) Exclusion of months in which individual is
imprisoned.--Such term shall not include any month with
respect to an individual if, as of the first day of
such month, such individual is imprisoned under
Federal, State, or local authority.
``(3) Other specified coverage.--For purposes of this
subsection, an individual has other specified coverage for any
month if, as of the first day of such month--
``(A) Subsidized coverage.--
``(i) In general.--Such individual is
covered under any qualified health insurance
under which at least 50 percent of the cost of
coverage (determined under section 4980B) is
paid or incurred by an employer (or former
employer) of the taxpayer or the taxpayer's
spouse.
``(ii) Treatment of cafeteria plans and
flexible spending accounts.--For purposes of
clause (i), the cost of benefits--
``(I) which are chosen under a
cafeteria plan (as defined in section
125(d)), or provided under a flexible
spending or similar arrangement, of
such an employer, and
``(II) which are not includible in
gross income under section 106,
shall be treated as borne by such employer.
``(B) Coverage under medicare, medicaid, or
schip.--Such individual--
``(i) is entitled to benefits under part A
of title XVIII of the Social Security Act or is
enrolled under part B of such title, or
``(ii) is enrolled in the program under
title XIX or XXI of such Act (other than under
section 1928).
``(C) Certain other coverage.--Such individual--
``(i) is enrolled in a health benefits plan
under chapter 89 of title 5, United States
Code,
``(ii) is entitled to receive benefits
under chapter 55 of title 10, United States
Code,
``(iii) is entitled to receive benefits
under chapter 17 of title 38, United States
Code, or
``(iv) is eligible for benefits under the
Indian Health Care Improvement Act.
``(4) Special rule.--For purposes of this subsection, an
individual does not have other specified coverage for any month
if such coverage is under a qualified long-term care insurance
contract (as defined in section 7702B(b)(1)).
``(c) Eligible Individual.--For purposes of this section, the term
`eligible individual' means an individual who is qualified to receive
payment of a trade adjustment allowance under section 235 of the Trade
Act of 1974, as amended by section 111 of the Trade Adjustment
Assistance Reform Act of 2002.
``(d) Qualified Health Insurance.--For purposes of this section,
the term `qualified health insurance' means health insurance coverage
described under section 173(f) of the Workforce Investment Act of 1998
(29 U.S.C. 2918(f)).
``(e) Coordination With Advance Payments of Credit.--
``(1) Recapture of excess advance payments.--If any payment
is made by the Secretary under section 7527 during any calendar
year to a provider of qualified health insurance for an
individual, then the tax imposed by this chapter for the
individual's last taxable year beginning in such calendar year
shall be increased by the aggregate amount of such payments.
``(2) Reconciliation of payments advanced and credit
allowed.--Any increase in tax under paragraph (1) shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit (other than the credit
allowed by subsection (a)) allowable under part IV of
subchapter A of chapter 1.
``(f) Special Rules.--
``(1) Coordination with other deductions.--Amounts taken
into account under subsection (a) shall not be taken into
account in determining any deduction allowed under section
162(l) or 213.
``(2) MSA distributions.--Amounts distributed from an
Archer MSA (as defined in section 220(d)) shall not be taken
into account under subsection (a).
``(3) Denial of credit to dependents.--No credit shall be
allowed under this section to any individual with respect to
whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins.
``(4) Credit treated as refundable credit.--For purposes of
this title, the credit allowed under this section shall be
treated as a credit allowable under subpart C of part IV of
subchapter A of chapter 1.
``(5) Expenses must be substantiated.--A payment for
qualified health insurance to which subsection (a) applies may
be taken into account under this section only if the taxpayer
substantiates such payment in such form as the Secretary may
prescribe.
``(6) Regulations.--The Secretary may prescribe such
regulations and other guidance as may be necessary or
appropriate to carry out this section and section 7527.''.
(b) Information Reporting.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986 (relating to
information concerning transactions with other persons) is
amended by inserting after section 6050S the following new
section:
``SEC. 6050T. RETURNS RELATING TO TRADE ADJUSTMENT ASSISTANCE HEALTH
INSURANCE CREDIT.
``(a) Requirement of Reporting.--Every person--
``(1) who, in connection with a trade or business conducted
by such person, receives payments during any calendar year from
any individual for coverage of such individual or any other
individual under qualified health insurance (as defined in
section 6429(d)), and
``(2) who claims a reimbursement for an advance credit
amount,
shall, at such time as the Secretary may prescribe, make the return
described in subsection (b) with respect to each individual from whom
such payments were received or for whom such a reimbursement is
claimed.
``(b) Form and Manner of Returns.--A return is described in this
subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name, address, and TIN of each individual
referred to in subsection (a),
``(B) the aggregate of the advance credit amounts
provided to such individual and for which reimbursement
is claimed,
``(C) the number of months for which such advance
credit amounts are so provided, and
``(D) such other information as the Secretary may
prescribe.
``(c) Statements To Be Furnished to Individuals With Respect to
Whom Information Is Required.--Every person required to make a return
under subsection (a) shall furnish to each individual whose name is
required to be set forth in such return a written statement showing--
``(1) the name and address of the person required to make
such return and the phone number of the information contact for
such person, and
``(2) the information required to be shown on the return
with respect to such individual.
The written statement required under the preceding sentence shall be
furnished on or before January 31 of the year following the calendar
year for which the return under subsection (a) is required to be made.
``(d) Advance Credit Amount.--For purposes of this section, the
term `advance credit amount' means an amount for which the person can
claim a reimbursement pursuant to a program established by the
Secretary under section 7527.''.
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1) of such
Code (relating to definitions) is amended by
redesignating clauses (xi) through (xvii) as clauses
(xii) through (xviii), respectively, and by inserting
after clause (x) the following new clause:
``(xi) section 6050T (relating to returns
relating to trade adjustment assistance health
insurance credit),''.
(B) Paragraph (2) of section 6724(d) of such Code
is amended by striking ``or'' at the end of
subparagraph (Z), by striking the period at the end of
subparagraph (AA) and inserting ``, or'', and by adding
after subparagraph (AA) the following new subparagraph:
``(BB) section 6050T (relating to returns relating
to trade adjustment assistance health insurance
credit).''.
(3) Clerical amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 of such Code is
amended by inserting after the item relating to section 6050S
the following new item:
``Sec. 6050T. Returns relating to trade
adjustment assistance health
insurance credit.''.
(c) Criminal Penalty for Fraud.--
(1) In general.--Subchapter B of chapter 75 of the Internal
Revenue Code of 1986 (relating to other offenses) is amended by
adding at the end the following:
``SEC. 7276. PENALTIES FOR OFFENSES RELATING TO TRADE ADJUSTMENT
ASSISTANCE HEALTH INSURANCE CREDIT.
``Any person who knowingly misuses Department of the Treasury
names, symbols, titles, or initials to convey the false impression of
association with, or approval or endorsement by, the Department of the
Treasury of any insurance products or group health coverage in
connection with the credit for trade adjustment assistance health
insurance under section 6429 shall on conviction thereof be fined not
more than $10,000, or imprisoned not more than 1 year, or both.''.
(2) The table of sections for subchapter B of chapter 75 of
such Code is amended by adding at the end the following:
``Sec. 7276. Penalties for offenses
relating to trade adjustment
assistance health insurance
credit.''.
(d) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 6429 of such Code''.
(2) The table of sections for subchapter B of chapter 65 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new item:
``Sec. 6429. Trade adjustment assistance
health insurance credit.''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2001, without regard to whether
final regulations to carry out such amendments have been
promulgated by such date.
(2) Penalties.--The amendments made by subsection (c) shall
take effect on the date of the enactment of this Act.
SEC. 602. ADVANCE PAYMENT OF TRADE ADJUSTMENT ASSISTANCE HEALTH
INSURANCE CREDIT.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986
(relating to miscellaneous provisions) is amended by adding at the end
the following new section:
``SEC. 7527. ADVANCE PAYMENT OF TRADE ADJUSTMENT ASSISTANCE HEALTH
INSURANCE CREDIT.
``(a) General Rule.--The Secretary shall establish a program for
making payments on behalf of eligible individuals (as defined in
section 6429(c)) to providers of health insurance for such individuals
for whom a qualified health insurance credit eligibility certificate is
in effect.
``(b) Qualified Health Insurance Credit Eligibility Certificate.--
For purposes of this section, a qualified health insurance credit
eligibility certificate is a statement certified by a designated local
agency (as defined in section 51(d)(11)) (or by any other entity
designated by the Secretary) which--
``(1) certifies that the individual was an eligible
individual (as defined in section 6429(c)) as of the first day
of any month, and
``(2) provides such other information as the Secretary may
require for purposes of this section.''.
(b) Clerical Amendment.--The table of sections for chapter 77 of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new item:
``Sec. 7527. Advance payment of trade
adjustment assistance health
insurance credit.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act, without regard to
whether final regulations to carry out such amendments have been
promulgated by such date.
SEC. 603. HEALTH INSURANCE COVERAGE FOR ELIGIBLE INDIVIDUALS.
(a) Eligibility for Grants.--Section 173(a) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(a)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3) by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(4) from funds appropriated under section 174(c)--
``(A) to a State to provide the assistance
described in subsection (f) to any eligible worker (as
defined in subsection (f)(4)(B)); and
``(B) to a State to provide the assistance
described in subsection (g) to any eligible worker (as
defined in subsection (g)(5)).''.
(b) Use of Funds for Health Insurance Coverage.--Section 173 of the
Workforce Investment Act of 1998 (29 U.S.C. 2918) is amended by adding
at the end the following:
``(f) Health Insurance Coverage Assistance for Eligible Workers.--
``(1) In general.--Funds made available to a State under
paragraph (4)(A) of subsection (a) may be used by the State for
the following:
``(A) Health insurance coverage.--To assist an
eligible worker (as defined in paragraph (4)(B)) in
enrolling in health insurance coverage through--
``(i) COBRA continuation coverage;
``(ii) State-based continuation coverage
provided by the State under a State law that
requires such coverage even though the coverage
would not otherwise be required under the
provisions of law referred to in paragraph
(4)(A);
``(iii) the enrollment of the eligible
worker and the eligible worker's spouse and
dependents in health insurance coverage offered
through a qualified State high risk pool or
other comparable State-based health insurance
coverage alternative;
``(iv) the enrollment of the eligible
worker and the eligible worker's spouse and
dependents in the health insurance program
offered for State employees;
``(v) the enrollment of the eligible worker
and the eligible worker's spouse and dependents
in a State-based health insurance program that
is comparable to the health insurance program
offered for State employees;
``(vi) a direct payment arrangement entered
into by the State and a group health plan
(including a multiemployer plan as defined in
section 3(37) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1002(37))), an
issuer of health insurance coverage, an
administrator, or an employer, as appropriate,
on behalf of the eligible worker and the
eligible worker's spouse and dependents;
``(vii) the enrollment of the eligible
worker and the eligible worker's spouse and
dependents in a State-operated, State-funded
health plan;
``(viii) the enrollment of the eligible
worker and the eligible worker's spouse and
dependents in health insurance coverage offered
through a State arrangement with a private
sector health care coverage purchasing pool; or
``(ix) in the case of an eligible worker
who was enrolled in individual health insurance
coverage during the 6-month period that ends on
the date on which the worker became unemployed,
enrollment in such individual health insurance
coverage.
``(B) Establishment of health insurance coverage
mechanisms.--To establish or administer--
``(i) a qualified State high risk pool for
the purpose of providing health insurance
coverage to an eligible worker and the eligible
worker's spouse and dependents;
``(ii) a State-based program for the
purpose of providing health insurance coverage
to an eligible worker and the eligible worker's
spouse and dependents that is comparable to the
State health insurance program for State
employees; or
``(iii) a program under which the State
enters into arrangements described in
subparagraph (A)(vi).
``(C) Administrative expenses.--To pay the
administrative expenses related to the enrollment of
eligible workers and the eligible workers spouses and
dependents in health insurance coverage described in
subparagraph (A), including--
``(i) eligibility verification activities;
``(ii) the notification of eligible workers
of available health insurance coverage options;
``(iii) processing qualified health
insurance credit eligibility certificates
provided for under section 7527 of the Internal
Revenue Code of 1986;
``(iv) providing assistance to eligible
workers in enrolling in health insurance
coverage;
``(v) the development or installation of
necessary data management systems; and
``(vi) any other expenses determined
appropriate by the Secretary.
``(2) Requirements relating to health insurance coverage.--
With respect to health insurance coverage provided to eligible
workers under any of clauses (ii) through (viii) of paragraph
(1)(A), the State shall ensure that--
``(A) enrollment is guaranteed for workers who
provide a qualified health insurance credit eligibility
certificate described in section 7527 of the Internal
Revenue Code of 1986 and who pay the remainder of the
premium for such enrollment;
``(B) no pre-existing condition limitations are
imposed with respect to such eligible workers;
``(C) the worker is not required (as a condition of
enrollment or continued enrollment under the coverage)
to pay a premium or contribution that is greater than
the premium or contribution for a similarly situated
individual who is not an eligible worker;
``(D) benefits under the coverage are the same as
(or substantially similar to) the benefits provided to
similarly situated individuals who are not eligible
workers;
``(E) the standard loss ratio for the coverage is
not less than 65 percent;
``(F) in the case of coverage provided under
paragraph (1)(A)(v), the premiums and benefits are
comparable to the premiums and benefits applicable to
State employees; and
``(G) such coverage otherwise meets requirements
established by the Secretary.
``(3) Availability of funds.--
``(A) Expedited procedures.--With respect to
applications submitted by States for grants under this
subsection, the Secretary shall--
``(i) not later than 15 days after the date
on which the Secretary receives a completed
application from a State, notify the State of
the determination of the Secretary with respect
to the approval or disapproval of such
application;
``(ii) in the case of a State application
that is disapproved by the Secretary, provide
technical assistance, at the request of the
State, in a timely manner to enable the State
to submit an approved application; and
``(iii) develop procedures to expedite the
provision of funds to States with approved
applications.
``(B) Availability and distribution of funds.--The
Secretary shall ensure that funds made available under
section 174(c)(1)(A) to carry out subsection (a)(4)(A)
are available to States throughout the period described
in section 174(c)(2)(A).
``(4) Definitions.--For purposes of this subsection:
``(A) Cobra continuation coverage.--The term `COBRA
continuation coverage' means coverage under a group
health plan provided by an employer pursuant to title
XXII of the Public Health Service Act, section 4980B of
the Internal Revenue Code of 1986, part 6 of subtitle B
of title I of the Employee Retirement Income Security
Act of 1974, or section 8905a of title 5, United States
Code.
``(B) Eligible worker.--The term `eligible worker'
means an individual who--
``(i) is qualified to receive payment of a
trade adjustment allowance under section 235 of
the Trade Act of 1974, as amended by section
111 of the Trade Adjustment Assistance Reform
Act of 2002;
``(ii) does not have other specified
coverage; and
``(iii) is not imprisoned under Federal,
State, or local authority.
``(C) Other specified coverage.--With respect to
any individual, the term `other specified coverage'
means--
``(i) Subsidized coverage.--
``(I) In general.--Such individual
is covered under any health insurance
coverage under which at least 50
percent of the cost of coverage
(determined under section 4980B of the
Internal Revenue Code of 1986) is paid
or incurred by an employer (or former
employer) of the individual or the
individual's spouse.
``(II) Treatment of cafeteria plans
and flexible spending accounts.--For
purposes of subclause (I), the cost of
benefits which are chosen under a
cafeteria plan (as defined in section
125(d) of such Code), or provided under
a flexible spending or similar
arrangement, of such an employer, and
which are not includible in gross
income under section 106 of such Code,
shall be treated as borne by such
employer.
``(ii) Coverage under medicare, medicaid,
or schip.--Such individual--
``(I) is entitled to benefits under
part A of title XVIII of the Social
Security Act or is enrolled under part
B of such title, or
``(II) is enrolled in the program
under title XIX or XXI of such Act
(other than under section 1928).
``(iii) Certain other coverage.--Such
individual--
``(I) is enrolled in a health
benefits plan under chapter 89 of title
5, United States Code;
``(II) is entitled to receive
benefits under chapter 55 of title 10,
United States Code;
``(III) is entitled to receive
benefits under chapter 17 of title 38,
United States Code; or
``(IV) is eligible for benefits
under the Indian Health Care
Improvement Act.
Such term does not include coverage under a qualified
long-term care insurance contract (as defined in
section 7702B(b)(1) of the Internal Revenue Code of
1986).
``(D) Group health plan.--The term `group health
plan' has the meaning given that term in section
2791(a) of the Public Health Service Act (42 U.S.C.
300gg-91(a)), section 607(1) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1167(1)), and
section 4980B(g)(2) of the Internal Revenue Code of
1986.
``(E) Health insurance coverage.--The term `health
insurance coverage' has the meaning given that term in
section 2791(b)(1) of the Public Health Service Act (42
U.S.C. 300gg-91(b)(1)) (other than insurance if
substantially all of its coverage is of excepted
benefits described in section 2791(c) of such Act (42
U.S.C. 300gg-91(c)) .
``(F) Individual health insurance coverage.--The
term `individual health insurance coverage' means
health insurance coverage offered to individuals other
than in connection with a group health plan. Such term
does not include Federal- or State-based health
insurance coverage.
``(G) Qualified state high risk pool.--The term
`qualified State high risk pool' has the meaning given
that term in section 2744(c)(2) of the Public Health
Service Act.
``(H) Standard loss ratio.--The term `standard loss
ratio', with respect to the pool of insured individuals
under coverage described in clauses (ii) through (viii)
of subparagraph (A) for a year, means--
``(i) the amount of claims incurred with
respect to the pool of insured individuals in
each such type of coverage for such year;
divided by
``(ii) the premiums paid for enrollment in
each such coverage for such year.
``(g) Interim Health and Other Assistance.--
``(1) In general.--Funds made available to a State under
paragraph (4)(B) of subsection (a) may be used by the State to
provide assistance and support services to eligible workers,
including health care coverage, transportation, child care,
dependent care, and income assistance.
``(2) Income support.--With respect to any income
assistance provided to an eligible worker with such funds, such
assistance shall supplement and not supplant other income
support or assistance provided under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.) (as in effect on
the day before the effective date of the Trade Adjustment
Assistance Reform Act of 2002) or the unemployment compensation
laws of the State where the eligible worker resides.
``(3) Health care coverage.--With respect to any health
care coverage assistance provided to an eligible worker with
such funds, the following rules shall apply:
``(A) The State may provide assistance in obtaining
health care coverage to the eligible worker and to the
eligible worker's spouse and dependents.
``(B) Such assistance shall supplement and may not
supplant any other State or local funds used to provide
health care coverage and may not be included in
determining the amount of non-Federal contributions
required under any program.
``(4) Availability of funds.--
``(A) Expedited procedures.--With respect to
applications submitted by States for grants under this
subsection, the Secretary shall--
``(i) not later than 15 days after the date
on which the Secretary receives a completed
application from a State, notify the State of
the determination of the Secretary with respect
to the approval or disapproval of such
application;
``(ii) in the case of a State application
that is disapproved by the Secretary, provide
technical assistance, at the request of the
State, in a timely manner to enable the State
to submit an approved application; and
``(iii) develop procedures to expedite the
provision of funds to States with approved
applications.
``(B) Availability and distribution of funds.--The
Secretary shall ensure that funds made available under
section 174(c)(1)(B) to carry out subsection (a)(4)(B)
are available to States throughout the period described
in section 174(c)(2)(B).
``(5) Definition of eligible worker.--In this subsection,
the term `eligible worker' means an individual who is a member
of a group of workers certified after April 1, 2002 under
chapter 2 of title II of the Trade Act of 1974 (as in effect on
the day before the effective date of the Trade Adjustment
Assistance Reform Act of 2002) and who is determined to be
qualified to receive payment of a trade adjustment allowance
under such chapter (as so in effect).''.
(c) Authorization of Appropriations.--Section 174 of the Workforce
Investment Act of 1998 (29 U.S.C. 2919) is amended by adding at the end
the following:
``(c) Assistance for Eligible Workers.--
``(1) In general.--There are authorized to be
appropriated--
``(A) to carry out subsection (a)(4)(A) of section
173--
``(i) $10,000,000 for fiscal year 2002; and
``(ii) $60,000,000 for each of fiscal years
2003 through 2007; and
``(B) to carry out subsection (a)(4)(B) of section
173--
``(i) $50,000,000 for fiscal year 2002;
``(ii) $100,000,000 for fiscal year 2003;
and
``(iii) $50,000,000 for fiscal year 2004.
``(2) Availability of funds.--Funds appropriated under--
``(A) paragraph (1)(A) for each fiscal year shall,
notwithstanding section 189(g), remain available for
obligation during the pendency of any outstanding claim
under the Trade Act of 1974, as amended by the Trade
Adjustment Assistance Reform Act of 2002; and
``(B) paragraph (1)(B), for each fiscal year shall,
notwithstanding section 189(g), remain available during
the period that begins on the date of enactment of the
Trade Adjustment Assistance Reform Act of 2002 and ends
on September 30, 2004.''.
(d) Conforming Amendment.--Section 132(a)(2)(A) of the Workforce
Investment Act of 1998 (29 U.S.C. 2862(a)(2)(A)) is amended by
inserting ``, other than under subsection (a)(4), (f), and (g)'' after
``grants''.
(e) Temporary Extension of COBRA Election Period for Certain
Individuals.--
(1) In general.--Notwithstanding any other provision of
law, the election period for COBRA continuation coverage (as
defined in section 6429(d)(2) of the Internal Revenue Code of
1986) with respect to any eligible individual (as defined in
section 6429(c) of such Code) for whom such period has expired
as of the date of the enactment of this Act, shall not end
before the date that is 60 days after the date the individual
becomes such an eligible individual.
(2) Preexisting conditions.--If an individual becomes such
an eligible individual, any period before the date of such
eligibility shall be disregarded for purposes of determining
the 63-day periods referred to in section 701(c)(2) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1181(c)(2)), section 2701(c)(2) of the Public Health Service
Act (42 U.S.C. 300gg(c)(2)), and section 9801(c)(2) of the
Internal Revenue Code of 1986.
TITLE VII--CONFORMING AMENDMENTS AND EFFECTIVE DATE
SEC. 701. CONFORMING AMENDMENTS.
(a) Amendments to the Trade Act of 1974.--
(1) Assistance to industries.--Section 265 of the Trade Act
of 1974 (19 U.S.C. 2355) is amended by striking ``certified as
eligible to apply for adjustment assistance under sections 231
or 251'', and inserting ``certified as eligible for trade
adjustment assistance benefits under section 231, or as
eligible to apply for adjustment assistance under section
251''.
(2) General accounting office report.--Section 280 of the
Trade Act of 1974 (19 U.S.C. 2391) is amended to read as
follows:
``SEC. 280. GENERAL ACCOUNTING OFFICE REPORT.
``(a) Study and Report.--The Comptroller General of the United
States shall conduct a study of the adjustment assistance programs
established under chapters 2, 3, 4, 6, and 7 of this title and shall
report the results of such study to the Congress no later than January
31, 2005. Such report shall include an evaluation of--
``(1) the effectiveness of such programs in aiding workers,
farmers, fishermen, firms, and communities to adjust to changed
economic conditions resulting from changes in the patterns of
international trade; and
``(2) the coordination of the administration of such
programs and other Government programs which provide
unemployment compensation and relief to depressed areas.
``(b) Assistance of Other Departments and Agencies.--In
carrying out his responsibilities under this section, the Comptroller
General shall, to the extent practical, avail himself of the assistance
of the Departments of Labor, Commerce, and Agriculture and the Small
Business Administration. The Secretaries of Labor, Commerce, and
Agriculture and the Administrator of the Small Business Administration
shall make available to the Comptroller General any assistance
necessary for an effective evaluation of the adjustment assistance
programs established under this title.''.
(3) Coordination.--Section 281 of the Trade Act of 1974 (19
U.S.C. 2392) is amended by striking ``Departments of Labor and
Commerce'' and inserting ``Departments of Labor, Commerce, and
Agriculture''.
(4) Trade monitoring system.--Section 282 of the Trade Act
of 1974 (19 U.S.C. 2393) is amended by striking ``The Secretary
of Commerce and the Secretary of Labor'' and inserting ``The
Secretaries of Commerce, Labor, and Agriculture''.
(5) Judicial review.--
(A) Section 284(a) of the Trade Act of 1974 (19
U.S.C. 2395(a)) is amended by striking ``under section
223 or section 250(c)'' and all that follows through
``the Secretary of Commerce under section 271'' and
inserting ``under section 231, a firm or its
representative, or any other interested domestic party
aggrieved by a final determination of the Secretary of
Commerce under section 251, an agricultural commodity
producer (as defined in section 291(2)) aggrieved by a
determination of the Secretary of Agriculture under
section 293, or a producer (as defined in section
299(2)) aggrieved by a determination of the Secretary
of Commerce under section 299B''.
(B) Section 284 of such Trade Act of 1974 is
amended in the second sentence of subsection (a) and in
subsections (b) and (c), by inserting ``or the
Secretary of Agriculture'' after ``Secretary of
Commerce'' each place it appears.
(6) Termination.--Section 285 of the Trade Act of 1974 is
amended to read as follows:
``SEC. 285. TERMINATION.
``(a) Assistance for Workers.--
``(1) In general.--Except as provided in paragraph (2),
trade adjustment assistance, vouchers, allowances, and other
payments or benefits may not be provided under chapter 2 after
September 30, 2007.
``(2) Exception.--Notwithstanding paragraph (1), a worker
shall continue to receive trade adjustment assistance benefits
and other benefits under chapter 2 for any week for which the
worker meets the eligibility requirements of that chapter, if
on or before September 30, 2007, the worker is--
``(A) certified as eligible for trade adjustment
assistance benefits under section 231; and
``(B) otherwise eligible to receive trade
adjustment assistance benefits under chapter 2.
``(b) Other Assistance.--
``(1) Assistance for firms.--Technical assistance may not
be provided under chapter 3 after September 30, 2007.
``(2) Assistance for communities.--Technical assistance and
other payments may not be provided under chapter 4 after
September 30, 2007.
``(3) Assistance for farmers and fishermen.--
``(A) In general.--Except as provided in
subparagraph (B), adjustment assistance, vouchers,
allowances, and other payments or benefits may not be
provided under chapter 6 or 7 after September 30, 2007.
``(B) Exception.--Notwithstanding subparagraph (A),
an agricultural commodity producer (as defined in
section 291(2)) or producer (as defined in section
299(2)), shall continue to receive adjustment
assistance benefits and other benefits under chapter 6
or 7, whichever applies, for any week for which the
agricultural commodity producer or producer meets the
eligibility requirements of chapter 6 or 7, whichever
applies, if on or before September 30, 2007, the
agricultural commodity producer or producer is--
``(i) certified as eligible for adjustment
assistance benefits under chapter 6 or 7,
whichever applies; and
``(ii) is otherwise eligible to receive
adjustment assistance benefits under such
chapter 6 or 7.''.
(6) Table of contents.--
(A) In general.--The table of contents for chapters
2, 3, and 4 of title II of the Trade Act of 1974 is
amended to read as follows:
``Chapter 2--Adjustment Assistance for Workers
``subchapter a--general provisions
``Sec. 221. Definitions.
``Sec. 222. Agreements with States.
``Sec. 223. Administration absent State agreement.
``Sec. 224. Data collection; evaluations; reports.
``Sec. 225. Study by Secretary of Labor when International
Trade Commission begins investigation.
``Sec. 226. Report by Secretary of Labor on likely impact of
``subchapter b--certifications
``Sec. 231. Certification as adversely affected workers.
``Sec. 232. ``subchapter c--program benefits
``Part I--General Provisions
``Sec. 234. Comprehensive assistance.
``Part II--Trade Adjustment Allowances
``Sec. 235. Qualifying requirements for workers.
``Sec. 236. Weekly amounts.
``Sec. 237. Limitations on trade adjustment allowances.
``Sec. 238. Application of State laws.
``Part III--Employment Services, Training, and Other Allowances
``Sec. 239. Employment services.
``Sec. 240. Training.
``Sec. 240A. Job training programs.
``Sec. 241. Job search allowances.
``Sec. 242. Relocation allowances.
``S``subchapter d--payment and enforcement provisions
``Sec. 244. Payments to States.
``Sec. 245. Liabilities of certifying and disbursing officers.
``Sec. 246. Fraud and recovery of overpayments.
``Sec. 247. Criminal penalties.
``Sec. 248. Authorization of appropriations.
``Sec. 249. Regulations.
``Sec. 250. Subpoena power.
``Chapter 3--Trade Adjustment Assistance for Firms
``Sec. 251. Petitions and determinations.
``Sec. 252. Approval of adjustment proposals.
``Sec. 253. Technical assistance.
``Sec. 254. Financial assistance.
``Sec. 255. Conditions for financial assistance.
``Sec. 256. Delegation of functions to Small Business
Administration; authorization of
appropriations.
``Sec. 257. Administration of financial assistance.
``Sec. 258. Protective provisions.
``Sec. 259. Penalties.
``Sec. 260. Suits.
``Sec. 261. Definition of firm.
``Sec. 262. Regulations.
``Sec. 264. Study by Secretary of Commerce when International
Trade Commission begins investigation;
action where there is affirmative finding.
``Sec. 265. Assistance to industries.
``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.''.
(B) Chapters 6 and 7.--The table of contents for
title II of the Trade Act of 1974, as amended by
subparagraph (A), is amended by inserting after the
items relating to chapter 5 the following:
``Chapter 6--Adjustment Assistance for Farmers
``Sec. 291. Definitions.
``Sec. 292. Petitions; group eligibility.
``Sec. 293. Determinations by Secretary of Agriculture.
``Sec. 294. Study by Secretary of Agriculture when International Trade
Commission begins investigation.
``Sec. 295. Benefit information to agricultural commodity producers.
``Sec. 296. Qualifying requirements for agricultural commodity
producers.
``Sec. 297. Fraud and recovery of overpayments.
``Sec. 298. Authorization of appropriations.
``Chapter 7--Adjustment Assistance for Fishermen
``Sec. 299. Definitions.
``Sec. 299A. Petitions; group eligibility.
``Sec. 299B. Determinations by Secretary.
``Sec. 299C. Study by Secretary when International Trade Commission
begins investigation.
``Sec. 299D. Benefit information to producers.
``Sec. 299E. Qualifying requirements for producers.
``Sec. 299F. Fraud and recovery of overpayments.
``Sec. 299G. Authorization of appropriations.''.
(b) Internal Revenue Code.--
(1) Adjusted gross income.--Section 62(a)(12) of the
Internal Revenue Code of 1986 (relating to the definition of
adjusted gross income) is amended by striking ``trade
readjustment allowances under section 231 or 232'' and
inserting ``trade adjustment allowances under section 235 or
236''.
(2) Federal unemployment.--
(A) In general.--Section 3304(a)(8) of the Internal
Revenue Code of 1986 (relating to the approval of State
unemployment insurance laws) is amended to read as
follows:
``(8) compensation shall not be denied to an individual for
any week because the individual is in training with the
approval of the State agency, or in training approved by the
Secretary of Labor pursuant to chapter 2 of title II of the
Trade Act of 1974 (or because of the application, to any such
week in training, of State law provisions relating to
availability for work, active search for work, or refusal to
accept work);''.
(B) Effective date.--
(i) In general.--Except as provided in
clause (ii), the amendments made by this
paragraph shall apply in the case of
compensation paid for weeks beginning on or
after the date that is 90 days after the date
of enactment of this Act.
(ii) Meeting of state legislature.--
(I) 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 subparagraph (A),
the amendments made by subparagraph (A)
shall apply in the case of compensation
paid for weeks beginning after the
earlier of--
(aa) the date the State
changes its statutes or
regulations in order to comply
with the amendments made by
this section; or
(bb) 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 the
amendments made by this Act apply
before the date described in clause
(i).
(II) Session defined.--In this
clause, the term ``session'' means a
regular, special, budget, or other
session of a State legislature.
(c) Amendments to Title 28.--
(1) Civil actions against the united states.--Section
1581(d) of title 28, United States Code, is amended--
(A) in paragraph (1), by striking ``section 223''
and inserting ``section 231'';
(B) in paragraph (2), by striking ``and''; and
(C) by striking paragraph (3), and inserting the
following:
``(3) any final determination of the Secretary of
Agriculture under section 293 of the Trade Act of 1974 with
respect to the eligibility of an agricultural commodity
producer (as defined in section 291(2)) for adjustment
assistance under such Act; and
``(4) any final determination of the Secretary of Commerce
under section 299B of the Trade Act of 1974 with respect to the
eligibility of a producer (as defined in section 299(2)) for
adjustment assistance under such Act.''.
(2) Persons entitled to commence a civil action.--Section
2631 of title 28, United States Code, is amended--
(A) by amending subsection (d)(1) to read as
follows:
``(d)(1) A civil action to review any final determination of the
Secretary of Labor under section 231 of the Trade Act of 1974 with
respect to the certification of workers as adversely affected and
eligible for trade adjustment assistance under that Act may be
commenced by a worker, a group of workers, a certified or recognized
union, or an authorized representative of such worker or group, that
petitions for certification under that Act or is aggrieved by the final
determination.'';
(B) by striking paragraph (3), and inserting the
following:
``(3) A civil action to review any final determination of
the Secretary of Agriculture under section 293 of the Trade Act
of 1974 with respect to the eligibility of an agricultural
commodity producer for adjustment assistance may be commenced
in the Court of International Trade by an agricultural
commodity producer that applies for assistance under such Act
and is aggrieved by such final determination, or by any other
interested party that is aggrieved by such final
determination.''; and
(C) by adding at the end the following new
paragraph:
``(4) A civil action to review any final determination of
the Secretary of Commerce under section 299B of the Trade Act
of 1974 with respect to the eligibility of an producer (as
defined in section 299(2)) for adjustment assistance may be
commenced in the Court of International Trade by a producer
that applies for assistance under such Act and is aggrieved by
such final determination, or by any other interested party that
is aggrieved by such final determination.''.
(3) Time for commencement of action.--Section 2636(d) of
title 28, United States Code, is amended by striking ``under
section 223 of the Trade Act of 1974 or a final determination
of the Secretary of Commerce under section 251 or section 271
of such Act'' and inserting ``under section 231 of the Trade
Act of 1974, a final determination of the Secretary of Commerce
under section 251 of that Act, a final determination of the
Secretary of Agriculture under section 293 of that Act, or a
final determination of the Secretary of Commerce under section
299B of that Act''.
(4) Scope and standard of review.--Section 2640(c) of title
28, United States Code, is amended by striking ``under section
223 of the Trade Act of 1974 or any final determination of the
Secretary of Commerce under section 251 or section 271 of such
Act'' and inserting ``under section 231 of the Trade Act of
1974, a final determination of the Secretary of Commerce under
section 251 of that Act, a final determination of the Secretary
of Agriculture under section 293 of that Act, or a final
determination of the Secretary of Commerce under section 299B
of that Act''.
(5) Relief.--Section 2643(c)(2) of title 28, United States
Code, is amended by striking ``under section 223 of the Trade
Act of 1974 or any final determination of the Secretary of
Commerce under section 251 or section 271 of such Act'' and
inserting ``under section 231 of the Trade Act of 1974, a final
determination of the Secretary of Commerce under section 251 of
that Act, a final determination of the Secretary of Agriculture
under section 293 of that Act, or a final determination of the
Secretary of Commerce under section 299B of that Act''.
(d) Amendment to the Food Stamp Act of 1977.--Section 6(o)(1)(B) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(o)(1)(B)) is amended by
striking ``section 236'' and inserting ``section 240''.
TITLE VIII--SAVINGS PROVISIONS AND EFFECTIVE DATE
SEC. 801. SAVINGS PROVISIONS.
(a) Proceedings Not Affected.--
(1) In general.--The provisions of this division shall not
affect any petition for certification for benefits under
chapter 2 of title II of the Trade Act of 1974 that was in
effect on September 30, 2001. Determinations shall be issued,
appeals shall be taken therefrom, and payments shall be made
under those determinations, as if this division had not been
enacted, and orders issued in any proceeding shall continue in
effect until modified, terminated, superseded, or revoked by a
duly authorized official, by a court of competent jurisdiction,
or by operation of law.
(2) Modification or discontinuance.--Nothing in this
subsection shall be deemed to prohibit the discontinuance or
modification of any proceeding under the same terms and
conditions and to the same extent that the proceeding could
have been discontinued or modified if this division had not
been enacted.
(b) Suits Not Affected.--The provisions of this division shall not
affect any suit commenced before October 1, 2001, and in all those
suits, proceedings shall be had, appeals taken, and judgments rendered
in the same manner and with the same effect as if this division had not
been enacted.
(c) Nonabatement of Actions.--No suit, action, or other proceeding
commenced by or against the Federal Government, or by or against any
individual in the official capacity of that individual as an officer of
the Federal Government, shall abate by reason of enactment of this Act.
SEC. 802. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in sections 401(b),
501(b), and 701(b)(2)(B), titles IX, X, and XI, and subsections (b),
(c), and (d) of this section, the amendments made by this division
shall apply to--
(1) petitions for certification filed under chapter 2 or 3
of title II of the Trade Act of 1974 on or after the date that
is 90 days after the date of enactment of this Act; and
(2) certifications for assistance under chapter 4 of title
II of the Trade Act of 1974 issued on or after the date that is
90 days after the date of enactment of this Act.
(b) Workers Certified as Eligible Before Effective Date.--
Notwithstanding subsection (a), a worker shall continue to receive (or
be eligible to receive) trade adjustment assistance and other benefits
under chapter 2 of title II of the Trade Act of 1974, as in effect on
September 30, 2001, for any week for which the worker meets the
eligibility requirements of such chapter 2 as in effect on such date,
if on or before such date, the worker--
(1) was certified as eligible for trade adjustment
assistance benefits under such chapter as in effect on such
date; and
(2) would otherwise be eligible to receive trade adjustment
assistance benefits under such chapter as in effect on such
date.
(c) Workers Who Became Eligible During Qualified Period.--
(1) In general.--Notwithstanding subsection (a) or any
other provision of law, including section 285 of the Trade Act
of 1974, any worker who would have been eligible to receive
trade adjustment assistance or other benefits under chapter 2
of title II of the Trade Act if 1974 during the qualified
period if such chapter 2 had been in effect during such period,
shall be eligible to receive trade adjustment assistance and
other benefits under chapter 2 of title II of the Trade Act of
1974, as in effect on September 30, 2001, for any week during
the qualified period for which the worker meets the eligibility
requirements of such chapter 2 as in effect on September 30,
2001.
(2) Qualified period.--For purposes of this subsection, the
term ``qualified period'' means the period beginning on January
11, 2002 and ending on the date that is 90 days after the date
of enactment of this Act.
(d) Adjustment Assistance for Firms.--
(1) In general.--Notwithstanding subsection (a) or any
other provision of law, including section 285 of the Trade Act
of 1974, and except as provided in paragraph (2) any firm that
would have been eligible to receive adjustment assistance under
chapter 3 of title II of the Trade Act if 1974 during the
qualified period if such chapter 3 had been in effect during
such period, shall be eligible to receive adjustment assistance
under chapter 3 of title II of the Trade Act of 1974, as in
effect on September 30, 2001, for any week during the qualified
period for which the firm meets the eligibility requirements of
such chapter 3 as in effect on September 30, 2001.
(2) Qualified period.--For purposes of this subsection, the
term ``qualified period'' means the period beginning on October
1, 2001 and ending on the date that is 90 days after the date
of enactment of this Act.
TITLE IX--REVENUE PROVISIONS
SEC. 901. CUSTOM USER FEES.
Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended by striking
``September 30, 2003'' and inserting ``December 31, 2010''.
TITLE X--MISCELLANEOUS PROVISIONS
SEC. 1001. COUNTRY OF ORIGIN LABELING OF FISH AND SHELLFISH PRODUCTS.
(a) Definitions.--In this section:
(1) Covered commodity.--The term ``covered commodity''
means--
(A) a perishable agricultural commodity; and
(B) any fish or shellfish, and any fillet, steak,
nugget, or any other flesh from fish or shellfish,
whether fresh, chilled, frozen, canned, smoked, or
otherwise preserved.
(2) Food service establishment.--The term ``food service
establishment'' means a restaurant, cafeteria, lunch room, food
stand, saloon, tavern, bar, lounge, or other similar facility
operated as an enterprise engaged in the business of selling
food to the public.
(3) Perishable agricultural commodity; retailer.--The terms
``perishable agricultural commodity'' and ``retailer'' have the
meanings given the terms in section 1(b) of the Perishable
Agricultural Commodities Act, 1930 (7 U.S.C. 499a(b)).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Agricultural Marketing
Service.
(b) Notice of Country of Origin.--
(1) Requirement.--Except as provided in paragraph (3), a
retailer of a covered commodity shall inform consumers, at the
final point of sale of the covered commodity to consumers, of
the country of origin of the covered commodity.
(2) United states country of origin.--A retailer of a
covered commodity may designate the covered commodity as having
a United States country of origin only if the covered commodity
is exclusively harvested and processed in the United States, or
in the case of farm-raised fish and shellfish, is hatched,
raised, harvested, and processed in the United States.
(3) Exemption for food service establishments.--Paragraph
(1) shall not apply to a covered commodity if the covered
commodity is prepared or served in a food service
establishment, and--
(A) offered for sale or sold at the food service
establishment in normal retail quantities; or
(B) served to consumers at the food service
establishment.
(c) Method of Notification.--
(1) In general.--The information required by subsection (b)
may be provided to consumers by means of a label, stamp, mark,
placard, or other clear and visible sign on the covered
commodity or on the package, display, holding unit, or bin
containing the covered commodity at the final point of sale to
consumers.
(2) Labeled commodities.--If the covered commodity is
already individually labeled for retail sale regarding country
of origin, the retailer shall not be required to provide any
additional information to comply with this section.
(d) Audit Verification System.--The Secretary may require that any
person that prepares, stores, handles, or distributes a covered
commodity for retail sale maintain a verifiable recordkeeping audit
trail that will permit the Secretary to ensure compliance with the
regulations promulgated under subsection (g).
(e) Information.--Any person engaged in the business of supplying a
covered commodity to a retailer shall provide information to the
retailer indicating the country of origin of the covered commodity.
(f) Enforcement.--
(1) In general.--Each Federal agency having jurisdiction
over retailers of covered commodities shall, at such time as
the necessary regulations are adopted under subsection (g),
adopt measures intended to ensure that the requirements of this
section are followed by affected retailers.
(2) Violation.--A violation of subsection (b) shall be
treated as a violation under the Agricultural Marketing Act of
1946 (7 U.S.C. 1621 et seq.).
(g) Regulations.--
(1) In general.--The Secretary may promulgate such
regulations as are necessary to carry out this section within 1
year after the date of enactment of this Act.
(2) Partnerships with states.--In promulgating the
regulations, the Secretary shall, to the maximum extent
practicable, enter into partnerships with States that have the
enforcement infrastructure necessary to carry out this section.
(h) Application.--This section shall apply to the retail sale of a
covered commodity beginning on the date that is 180 days after the date
of enactment of this Act.
SEC. 1002. SUGAR POLICY.
(a) Findings.--Congress finds that--
(1) the tariff-rate quotas imposed on imports of sugar,
syrups and sugar-containing products under chapters 17, 18, 19,
and 21 of the Harmonized Tariff Schedule of the United States
are an essential element of United States sugar policy;
(2) circumvention of the tariff-rate quotas will, if
unchecked, make it impossible to achieve the objectives of
United States sugar policy;
(3) the tariff-rate quotas have been circumvented
frequently, defeating the purposes of United States sugar
policy and causing disruption to the United States market for
sweeteners, injury to domestic growers, refiners, and
processors of sugar, and adversely affecting legitimate
exporters of sugar to the United States;
(4) it is essential to United States sugar policy that the
tariff-rate quotas be enforced and that deceptive practices be
prevented, including the importation of products with no
commercial use and failure to disclose all relevant information
to the United States Customs Service; and
(5) unless action is taken to prevent circumvention,
circumvention of the tariff-rate quotas will continue and will
ultimately destroy United States sugar policy.
(b) Policy.--It is the policy of the United States to maintain the
integrity of the tariff-rate quotas on sugars, syrups, and sugar-
containing products by stopping circumvention as soon as it becomes
apparent. It is also the policy of the United States that products not
used to circumvent the tariff-rate quotas, such as molasses used for
animal feed or for rum, not be affected by any action taken pursuant to
this Act.
(c) Identification of Imports.--
(1) Identification.--Not later than 30 days after the date
of enactment of this Act, and on a regular basis thereafter,
the Secretary of Agriculture shall--
(A) identify imports of articles that are
circumventing tariff-rate quotas on sugars, syrups, or
sugar-containing products imposed under chapter 17, 18,
19, or 21 of the Harmonized Tariff Schedule of the
United States; and
(B) report to the President the articles found to
be circumventing the tariff-rate quotas.
(2) Action by president.--Upon receiving the report from
the Secretary of Agriculture, the President shall, by
proclamation, include any article identified by the Secretary
in the appropriate tariff-rate quota provision of the
Harmonized Tariff Schedule.
TITLE XI--CUSTOMS REAUTHORIZATION
SEC. 1101. SHORT TITLE.
This title may be cited as the ``Customs Border Security Act of
2002''.
Subtitle A--United States Customs Service
CHAPTER 1--DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND COMMERCIAL
OPERATIONS
SEC. 1111. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL
OPERATIONS, COMMERCIAL OPERATIONS, AND AIR AND MARINE
INTERDICTION.
(a) Noncommercial Operations.--Section 301(b)(1) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1))
is amended--
(1) in subparagraph (A) to read as follows:
``(A) $886,513,000 for fiscal year 2003.''; and
(2) in subparagraph (B) to read as follows:
``(B) $909,471,000 for fiscal year 2004.''.
(b) Commercial Operations.--
(1) In general.--Section 301(b)(2)(A) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(2)(A)) is amended--
(A) in clause (i) to read as follows:
``(i) $1,603,482,000 for fiscal year 2003.''; and
(B) in clause (ii) to read as follows:
``(ii) $1,645,009,000 for fiscal year 2004.''.
(2) Automated commercial environment computer system.--Of
the amount made available for each of fiscal years 2003 and
2004 under section 301(b)(2)(A) of the Customs Procedural
Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(2)(A)), as amended by paragraph (1), $308,000,000 shall
be available until expended for each such fiscal year for the
development, establishment, and implementation of the Automated
Commercial Environment computer system.
(3) Reports.--Not later than 90 days after the date of
enactment of this Act, and not later than each subsequent 90-
day period, the Commissioner of Customs shall prepare and
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report demonstrating that the development and establishment of
the Automated Commercial Environment computer system is being
carried out in a cost-effective manner and meets the
modernization requirements of title VI of the North American
Free Trade Agreements Implementation Act.
(c) Air and Marine Interdiction.--Section 301(b)(3) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(3))
is amended--
(1) in subparagraph (A) to read as follows:
``(A) $181,860,000 for fiscal year 2003.''; and
(2) in subparagraph (B) to read as follows:
``(B) $186,570,000 for fiscal year 2004.''.
(d) Submission of Out-Year Budget Projections.--Section 301(a) of
the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(a)) is amended by adding at the end the following:
``(3) By not later than the date on which the President submits to
Congress the budget of the United States Government for a fiscal year,
the Commissioner of Customs shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of
the Senate the projected amount of funds for the succeeding fiscal year
that will be necessary for the operations of the Customs Service as
provided for in subsection (b).''.
SEC. 1112. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION EQUIPMENT FOR
THE UNITED STATES-MEXICO BORDER, UNITED STATES-CANADA
BORDER, AND FLORIDA AND THE GULF COAST SEAPORTS.
(a) Fiscal Year 2003.--Of the amounts made available for fiscal
year 2003 under section 301(b)(1)(A) of the Customs Procedural Reform
and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by
section 1111(a) of this title, $90,244,000 shall be available until
expended for acquisition and other expenses associated with
implementation and deployment of antiterrorist and illicit narcotics
detection equipment along the United States-Mexico border, the United
States-Canada border, and Florida and the Gulf Coast seaports, as
follows:
(1) United states-mexico border.--For the United States-
Mexico border, the following:
(A) $6,000,000 for 8 Vehicle and Container
Inspection Systems (VACIS).
(B) $11,200,000 for 5 mobile truck x-rays with
transmission and backscatter imaging.
(C) $13,000,000 for the upgrade of 8 fixed-site
truck x-rays from the present energy level of 450,000
electron volts to 1,000,000 electron volts (1-MeV).
(D) $7,200,000 for 8 1-MeV pallet x-rays.
(E) $1,000,000 for 200 portable contraband
detectors (busters) to be distributed among ports where
the current allocations are inadequate.
(F) $600,000 for 50 contraband detection kits to be
distributed among all southwest border ports based on
traffic volume.
(G) $500,000 for 25 ultrasonic container inspection
units to be distributed among all ports receiving
liquid-filled cargo and to ports with a hazardous
material inspection facility.
(H) $2,450,000 for 7 automated targeting systems.
(I) $360,000 for 30 rapid tire deflator systems to
be distributed to those ports where port runners are a
threat.
(J) $480,000 for 20 portable Treasury Enforcement
Communications Systems (TECS) terminals to be moved
among ports as needed.
(K) $1,000,000 for 20 remote watch surveillance
camera systems at ports where there are suspicious
activities at loading docks, vehicle queues, secondary
inspection lanes, or areas where visual surveillance or
observation is obscured.
(L) $1,254,000 for 57 weigh-in-motion sensors to be
distributed among the ports with the greatest volume of
outbound traffic.
(M) $180,000 for 36 AM traffic information radio
stations, with 1 station to be located at each border
crossing.
(N) $1,040,000 for 260 inbound vehicle counters to
be installed at every inbound vehicle lane.
(O) $950,000 for 38 spotter camera systems to
counter the surveillance of customs inspection
activities by persons outside the boundaries of ports
where such surveillance activities are occurring.
(P) $390,000 for 60 inbound commercial truck
transponders to be distributed to all ports of entry.
(Q) $1,600,000 for 40 narcotics vapor and particle
detectors to be distributed to each border crossing.
(R) $400,000 for license plate reader automatic
targeting software to be installed at each port to
target inbound vehicles.
(2) United states-canada border.--For the United States-
Canada border, the following:
(A) $3,000,000 for 4 Vehicle and Container
Inspection Systems (VACIS).
(B) $8,800,000 for 4 mobile truck x-rays with
transmission and backscatter imaging.
(C) $3,600,000 for 4 1-MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors
(busters) to be distributed among ports where the
current allocations are inadequate.
(E) $300,000 for 25 contraband detection kits to be
distributed among ports based on traffic volume.
(F) $240,000 for 10 portable Treasury Enforcement
Communications Systems (TECS) terminals to be moved
among ports as needed.
(G) $400,000 for 10 narcotics vapor and particle
detectors to be distributed to each border crossing
based on traffic volume.
(3) Florida and gulf coast seaports.--For Florida and the
Gulf Coast seaports, the following:
(A) $4,500,000 for 6 Vehicle and Container
Inspection Systems (VACIS).
(B) $11,800,000 for 5 mobile truck x-rays with
transmission and backscatter imaging.
(C) $7,200,000 for 8 1-MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors
(busters) to be distributed among ports where the
current allocations are inadequate.
(E) $300,000 for 25 contraband detection kits to be
distributed among ports based on traffic volume.
(b) Fiscal Year 2004.--Of the amounts made available for fiscal
year 2004 under section 301(b)(1)(B) of the Customs Procedural Reform
and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(B)), as amended by
section 1111(a) of this title, $9,000,000 shall be available until
expended for the maintenance and support of the equipment and training
of personnel to maintain and support the equipment described in
subsection (a).
(c) Acquisition of Technologically Superior Equipment; Transfer of
Funds.--
(1) In general.--The Commissioner of Customs may use
amounts made available for fiscal year 2003 under section
301(b)(1)(A) of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as
amended by section 1111(a) of this title, for the acquisition
of equipment other than the equipment described in subsection
(a) if such other equipment--
(A)(i) is technologically superior to the equipment
described in subsection (a); and
(ii) will achieve at least the same results at a
cost that is the same or less than the equipment
described in subsection (a); or
(B) can be obtained at a lower cost than the
equipment described in subsection (a).
(2) Transfer of funds.--Notwithstanding any other provision
of this section, the Commissioner of Customs may reallocate an
amount not to exceed 10 percent of--
(A) the amount specified in any of subparagraphs
(A) through (R) of subsection (a)(1) for equipment
specified in any other of such subparagraphs (A)
through (R);
(B) the amount specified in any of subparagraphs
(A) through (G) of subsection (a)(2) for equipment
specified in any other of such subparagraphs (A)
through (G); and
(C) the amount specified in any of subparagraphs
(A) through (E) of subsection (a)(3) for equipment
specified in any other of such subparagraphs (A)
through (E).
SEC. 1113. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.
As part of the annual performance plan for each of the fiscal years
2003 and 2004 covering each program activity set forth in the budget of
the United States Customs Service, as required under section 1115 of
title 31, United States Code, the Commissioner of Customs shall
establish performance goals, performance indicators, and comply with
all other requirements contained in paragraphs (1) through (6) of
subsection (a) of such section with respect to each of the activities
to be carried out pursuant to sections 1121 of this title.
CHAPTER 2--CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE
SEC. 1121. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO PREVENT CHILD
PORNOGRAPHY/CHILD SEXUAL EXPLOITATION.
(a) Authorization of Appropriations.--There is authorized to be
appropriated to the Customs Service $10,000,000 for fiscal year 2003 to
carry out the program to prevent child pornography/child sexual
exploitation established by the Child Cyber-Smuggling Center of the
Customs Service.
(b) Use of Amounts for Child Pornography Cyber Tipline.--Of the
amount appropriated under subsection (a), the Customs Service shall
provide 3.75 percent of such amount to the National Center for Missing
and Exploited Children for the operation of the child pornography cyber
tipline of the Center and for increased public awareness of the
tipline.
CHAPTER 3--MISCELLANEOUS PROVISIONS
SEC. 1131. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED STATES-CANADA
BORDER.
Of the amount made available for fiscal year 2003 under paragraphs
(1) and (2)(A) of section 301(b) of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075(b)), as amended by section
1111 of this title, $25,000,000 shall be available until expended for
the Customs Service to hire approximately 285 additional Customs
Service officers to address the needs of the offices and ports along
the United States-Canada border.
SEC. 1132. STUDY AND REPORT RELATING TO PERSONNEL PRACTICES OF THE
CUSTOMS SERVICE.
(a) Study.--The Commissioner of Customs shall conduct a study of
current personnel practices of the Customs Service, including an
overview of performance standards and the effect and impact of the
collective bargaining process on drug interdiction efforts of the
Customs Service and a comparison of duty rotation policies of the
Customs Service and other Federal agencies that employ similarly-
situated personnel.
(b) Report.--Not later than 120 days after the date of enactment of
this Act, the Commissioner of Customs shall submit to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate a report containing the results of the study
conducted under subsection (a).
SEC. 1133. STUDY AND REPORT RELATING TO ACCOUNTING AND AUDITING
PROCEDURES OF THE CUSTOMS SERVICE.
(a) Study.--(1) The Commissioner of Customs shall conduct a study
of actions by the Customs Service to ensure that appropriate training
is being provided to Customs Service personnel who are responsible for
financial auditing of importers.
(2) In conducting the study, the Commissioner--
(A) shall specifically identify those actions taken to
comply with provisions of law that protect the privacy and
trade secrets of importers, such as section 552(b) of title 5,
United States Code, and section 1905 of title 18, United States
Code; and
(B) shall provide for public notice and comment relating to
verification of the actions described in subparagraph (A).
(b) Report.--Not later than 6 months after the date of enactment of
this Act, the Commissioner of Customs shall submit to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate a report containing the results of the study
conducted under subsection (a).
SEC. 1134. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM;
REPORTS.
(a) Establishment and Implementation.--
(1) In general.--Not later than September 30, 2003, the
Commissioner of Customs shall, in accordance with the audit of
the Customs Service's fiscal years 2000 and 1999 financial
statements (as contained in the report of the Office of the
Inspector General of the Department of the Treasury issued on
February 23, 2001), establish and implement a cost accounting
system for expenses incurred in both commercial and
noncommercial operations of the Customs Service.
(2) Additional requirement.--The cost accounting system
described in paragraph (1) shall provide for an identification
of expenses based on the type of operation, the port at which
the operation took place, the amount of time spent on the
operation by personnel of the Customs Service, and an
identification of expenses based on any other appropriate
classification necessary to provide for an accurate and
complete accounting of the expenses.
(b) Reports.--Beginning on the date of enactment of this Act and
ending on the date on which the cost accounting system described in
subsection (a) is fully implemented, the Commissioner of Customs shall
prepare and submit to Congress on a quarterly basis a report on the
progress of implementing the cost accounting system pursuant to
subsection (a).
SEC. 1135. STUDY AND REPORT RELATING TO TIMELINESS OF PROSPECTIVE
RULINGS.
(a) Study.--The Comptroller General shall conduct a study on the
extent to which the Office of Regulations and Rulings of the Customs
Service has made improvements to decrease the amount of time to issue
prospective rulings from the date on which a request for the ruling is
received by the Customs Service.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General shall submit to the Committee on Ways
and Means of the House of Representatives and the Committee on Finance
of the Senate a report containing the results of the study conducted
under subsection (a).
(c) Definition.--In this section, the term ``prospective ruling''
means a ruling that is requested by an importer on goods that are
proposed to be imported into the United States and that relates to the
proper classification, valuation, or marking of such goods.
SEC. 1136. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.
(a) Study.--The Comptroller General shall conduct a study on the
extent to which the amount of each customs user fee imposed under
section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act
of 1985 (19 U.S.C. 58c(a)) is commensurate with the level of services
provided by the Customs Service relating to the fee so imposed.
(b) Report.--Not later than 120 days after the date of enactment of
this Act, the Comptroller General shall submit to the Committee on Ways
and Means of the House of Representatives and the Committee on Finance
of the Senate a report in classified form containing--
(1) the results of the study conducted under subsection
(a); and
(2) recommendations for the appropriate amount of the
customs user fees if such results indicate that the fees are
not commensurate with the level of services provided by the
Customs Service.
SEC. 1137. AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS STAFFING.
There are authorized to be appropriated to the Department of
Treasury such sums as may be necessary to provide an increase in the
annual rate of basic pay--
(1) for all journeyman Customs inspectors and Canine
Enforcement Officers who have completed at least one year's
service and are receiving an annual rate of basic pay for
positions at GS-9 of the General Schedule under section 5332 of
title 5, United States Code, from the annual rate of basic pay
payable for positions at GS-9 of the General Schedule under
section 5332, to an annual rate of basic pay payable for
positions at GS-11 of the General Schedule under such section
5332; and
(2) for the support staff associated with the personnel
described in subparagraph (A), at the appropriate GS level of
the General Schedule under such section 5332.
CHAPTER 4--ANTITERRORISM PROVISIONS
SEC. 1141. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY, OR
STAFFING OF THE CUSTOMS SERVICE.
Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is amended--
(1) by striking ``Whenever the President'' and inserting
``(a) Whenever the President''; and
(2) by adding at the end the following:
``(b)(1) Notwithstanding any other provision of law, the Secretary
of the Treasury, when necessary to respond to a national emergency
declared under the National Emergencies Act (50 U.S.C. 1601 et seq.) or
to a specific threat to human life or national interests, is authorized
to take the following actions on a temporary basis:
``(A) Eliminate, consolidate, or relocate any office or
port of entry of the Customs Service.
``(B) Modify hours of service, alter services rendered at
any location, or reduce the number of employees at any
location.
``(C) Take any other action that may be necessary to
directly respond to the national emergency or specific threat.
``(2) Notwithstanding any other provision of law, the Commissioner
of Customs, when necessary to respond to a specific threat to human
life or national interests, is authorized to close temporarily any
Customs office or port of entry or take any other lesser action that
may be necessary to respond to the specific threat.
``(3) The Secretary of the Treasury or the Commissioner of Customs,
as the case may be, shall notify the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the Senate not
later than 72 hours after taking any action under paragraph (1) or
(2).''.
SEC. 1142. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR CARGO AND
PASSENGERS.
(a) Cargo Information.--
(1) In general.--Section 431(b) of the Tariff Act of 1930
(19 U.S.C. 1431(b)) is amended--
(A) in the first sentence, by striking ``Any
manifest'' and inserting ``(1) Any manifest''; and
(B) by adding at the end the following:
``(2) In addition to any other requirement under this section, for
each land, air, or vessel carrier required to make entry or obtain
clearance under the customs laws of the United States, the pilot, the
master, operator, or owner of such carrier (or the authorized agent of
such operator or owner) shall provide by electronic transmission cargo
manifest information in advance of such entry or clearance in such
manner, time, and form as prescribed under regulations by the
Secretary. The Secretary may exclude any class of land, air, or vessel
carrier for which the Secretary concludes the requirements of this
subparagraph are not necessary.''.
(2) Conforming amendments.--Subparagraphs (A) and (C) of
section 431(d)(1) of such Act are each amended by inserting
before the semicolon ``or subsection (b)(2)''.
(b) Passenger Information.--Part II of title IV of the Tariff Act
of 1930 (19 U.S.C. 1431 et seq.) is amended by inserting after section
431 the following:
``SEC. 432. PASSENGER AND CREW MANIFEST INFORMATION REQUIRED FOR LAND,
AIR, OR VESSEL CARRIERS.
``(a) In General.--For every person arriving or departing on a
land, air, or vessel carrier required to make entry or obtain clearance
under the customs laws of the United States, the pilot, the master,
operator, or owner of such carrier (or the authorized agent of such
operator or owner) shall provide by electronic transmission manifest
information described in subsection (b) in advance of such entry or
clearance in such manner, time, and form as prescribed under
regulations by the Secretary.
``(b) Information Described.--The information described in this
subsection shall include for each person described in subsection (a),
the person's--
``(1) full name;
``(2) date of birth and citizenship;
``(3) gender;
``(4) passport number and country of issuance;
``(5) United States visa number or resident alien card
number, as applicable;
``(6) passenger name record; and
``(7) such additional information that the Secretary, by
regulation, determines is reasonably necessary to ensure
aviation and maritime safety pursuant to the laws enforced or
administered by the Customs Service.''.
(c) Definition.--Section 401 of the Tariff Act of 1930 (19 U.S.C.
1401) is amended by adding at the end the following:
``(t) The term `land, air, or vessel carrier' means a land, air, or
vessel carrier, as the case may be, that transports goods or passengers
for payment or other consideration, including money or services
rendered.''.
(d) Effective Date.--The amendments made by this section shall take
effect beginning 45 days after the date of enactment of this Act.
SEC. 1143. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND IN OUTBOUND
MAIL.
(a) In General.--The Tariff Act of 1930 is amended by inserting
after section 582 the following:
``SEC. 583. EXAMINATION OF OUTBOUND MAIL.
``(a) Examination.--
``(1) In general.--For purposes of ensuring compliance with
the Customs laws of the United States and other laws enforced
by the Customs Service, including the provisions of law
described in paragraph (2), a Customs officer may, subject to
the provisions of this section, stop and search at the border,
without a search warrant, mail of domestic origin transmitted
for export by the United States Postal Service and foreign mail
transiting the United States that is being imported or exported
by the United States Postal Service.
``(2) Provisions of law described.--The provisions of law
described in this paragraph are the following:
``(A) Section 5316 of title 31, United States Code
(relating to reports on exporting and importing
monetary instruments).
``(B) Sections 1461, 1463, 1465, and 1466, and
chapter 110 of title 18, United States Code (relating
to obscenity and child pornography).
``(C) Section 1003 of the Controlled Substances
Import and Export Act (relating to exportation of
controlled substances) (21 U.S.C. 953).
``(D) The Export Administration Act of 1979 (50
U.S.C. App. 2401 et seq.).
``(E) Section 38 of the Arms Export Control Act (22
U.S.C. 2778).
``(F) The International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.).
``(b) Search of Mail Not Sealed Against Inspection and Other
Mail.--Mail not sealed against inspection under the postal laws and
regulations of the United States, mail which bears a Customs
declaration, and mail with respect to which the sender or addressee has
consented in writing to search, may be searched by a Customs officer.
``(c) Search of Mail Sealed Against Inspection Weighing in Excess
of 16 Ounces.--
``(1) In general.--Mail weighing in excess of 16 ounces sealed
against inspection under the postal laws and regulations of the United
States may be searched by a Customs officer, subject to paragraph (2),
if there is reasonable cause to suspect that such mail contains one or
more of the following:
``(A) Monetary instruments, as defined in section 1956 of
title 18, United States Code.
``(B) A weapon of mass destruction, as defined in section
2332a(b) of title 18, United States Code.
``(C) A drug or other substance listed in schedule I, II,
III, or IV in section 202 of the Controlled Substances Act (21
U.S.C. 812).
``(D) National defense and related information transmitted
in violation of any of sections 793 through 798 of title 18,
United States Code.
``(E) Merchandise mailed in violation of section 1715 or
1716 of title 18, United States Code.
``(F) Merchandise mailed in violation of any provision of
chapter 71 (relating to obscenity) or chapter 110 (relating to
sexual exploitation and other abuse of children) of title 18,
United States Code.
``(G) Merchandise mailed in violation of the Export
Administration Act of 1979 (50 U.S.C. App. 2401 et seq.).
``(H) Merchandise mailed in violation of section 38 of the
Arms Export Control Act (22 U.S.C. 2778).
``(I) Merchandise mailed in violation of the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
``(J) Merchandise mailed in violation of the Trading with
the Enemy Act (50 U.S.C. App. 1 et seq.).
``(K) Merchandise subject to any other law enforced by the
Customs Service.
``(2) Limitation.--No person acting under the authority of
paragraph (1) shall read, or authorize any other person to
read, any correspondence contained in mail sealed against
inspection unless prior to so reading--
``(A) a search warrant has been issued pursuant to
rule 41 of the Federal Rules of Criminal Procedure; or
``(B) the sender or addressee has given written
authorization for such reading.
``(d) Search of Mail Sealed Against Inspection Weighing 16 Ounces
or Less.--Notwithstanding any other provision of this section,
subsection (a)(1) shall not apply to mail weighing 16 ounces or less
sealed against inspection under the postal laws and regulations of the
United States.''.
(b) Certification by Secretary.--Not later than 3 months after the
date of enactment of this section, the Secretary of State shall
determine whether the application of section 583 of the Tariff Act of
1930 to foreign mail transiting the United States that is imported or
exported by the United States Postal Service is being handled in a
manner consistent with international law and any international
obligation of the United States. Section 583 of such Act shall not
apply to such foreign mail unless the Secretary certifies to Congress
that the application of such section 583 is consistent with
international law and any international obligation of the United
States.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect on the date of enactment of this Act.
(2) Certification with respect to foreign mail.--The
provisions of section 583 of the Tariff Act of 1930 relating to
foreign mail transiting the United States that is imported or
exported by the United States Postal Service shall not take
effect until the Secretary of State certifies to Congress,
pursuant to subsection (b), that the application of such
section 583 is consistent with international law and any
international obligation of the United States.
SEC. 1144. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISHMENT OF
CUSTOMS OPERATIONS IN NEW YORK CITY.
(a) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated for
the reestablishment of operations of the Customs Service in New
York, New York, such sums as may be necessary for fiscal year
2003.
(2) Operations described.--The operations referred to in
paragraph (1) include, but are not limited to, the following:
(A) Operations relating to the Port Director of New
York City, the New York Customs Management Center
(including the Director of Field Operations), and the
Special Agent-In-Charge for New York.
(B) Commercial operations, including textile
enforcement operations and salaries and expenses of--
(i) trade specialists who determine the
origin and value of merchandise;
(ii) analysts who monitor the entry data
into the United States of textiles and textile
products; and
(iii) Customs officials who work with
foreign governments to examine textile makers
and verify entry information.
(b) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under subsection (a) are authorized to
remain available until expended.
CHAPTER 5--TEXTILE TRANSSHIPMENT PROVISIONS
SEC. 1151. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY CUSTOMS
SERVICE.
(a) GAO Audit.--The Comptroller General of the United States shall
conduct an audit of the system established and carried out by the
Customs Service to monitor textile transshipment.
(b) Report.--Not later than 9 months after the date of enactment of
this Act, the Comptroller General shall submit to the Committee on Ways
and Means of the House of Representatives and Committee on Finance of
the Senate a report that contains the results of the study conducted
under subsection (a), including recommendations for improvements to the
transshipment monitoring system if applicable.
(c) Transshipment Described.--Transshipment within the meaning of
this section has occurred when preferential treatment under any
provision of law has been claimed for a textile or apparel article on
the basis of material false information concerning the country of
origin, manufacture, processing, or assembly of the article or any of
its components. For purposes of the preceding sentence, false
information is material if disclosure of the true information would
mean or would have meant that the article is or was ineligible for
preferential treatment under the provision of law in question.
SEC. 1152. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANSSHIPMENT
ENFORCEMENT OPERATIONS.
(a) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated for
textile transshipment enforcement operations of the Customs
Service $9,500,000 for fiscal year 2003.
(2) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under paragraph (1) are
authorized to remain available until expended.
(b) Use of Funds.--Of the amount appropriated pursuant to the
authorization of appropriations under subsection (a), the following
amounts are authorized to be made available for the following purposes:
(1) Import specialists.--$1,463,000 for 21 Customs import
specialists to be assigned to selected ports for documentation
review to support detentions and exclusions and 1 additional
Customs import specialist assigned to the Customs headquarters
textile program to administer the program and provide
oversight.
(2) Inspectors.--$652,080 for 10 Customs inspectors to be
assigned to selected ports to examine targeted high-risk
shipments.
(3) Investigators.--(A) $1,165,380 for 10 investigators to
be assigned to selected ports to investigate instances of
smuggling, quota and trade agreement circumvention, and use of
counterfeit visas to enter inadmissible goods.
(B) $149,603 for 1 investigator to be assigned to Customs
headquarters textile program to coordinate and ensure
implementation of textile production verification team results
from an investigation perspective.
(4) International trade specialists.--$226,500 for 3
international trade specialists to be assigned to Customs
headquarters to be dedicated to illegal textile transshipment
policy issues and other free trade agreement enforcement
issues.
(5) Permanent import specialists for hong kong.--$500,000
for 2 permanent import specialist positions and $500,000 for 2
investigators to be assigned to Hong Kong to work with Hong
Kong and other government authorities in Southeast Asia to
assist such authorities pursue proactive enforcement of
bilateral trade agreements.
(6) Various permanent trade positions.--$3,500,000 for the
following:
(A) 2 permanent positions to be assigned to the
Customs attache office in Central America to address
trade enforcement issues for that region.
(B) 2 permanent positions to be assigned to the
Customs attache office in South Africa to address trade
enforcement issues pursuant to the African Growth and
Opportunity Act (title I of Public Law 106-200).
(C) 4 permanent positions to be assigned to the
Customs attache office in Mexico to address the threat
of illegal textile transshipment through Mexico and
other related issues under the North American Free
Trade Agreement Act.
(D) 2 permanent positions to be assigned to the
Customs attache office in Seoul, South Korea, to
address the trade issues in the geographic region.
(E) 2 permanent positions to be assigned to the
proposed Customs attache office in New Delhi, India, to
address the threat of illegal textile transshipment and
other trade enforcement issues.
(F) 2 permanent positions to be assigned to the
Customs attache office in Rome, Italy, to address trade
enforcement issues in the geographic region, including
issues under free trade agreements with Jordan and
Israel.
(7) Attorneys.--$179,886 for 2 attorneys for the Office of
the Chief Counsel of the Customs Service to pursue cases
regarding illegal textile transshipment.
(8) Auditors.--$510,000 for 6 Customs auditors to perform
internal control reviews and document and record reviews of
suspect importers.
(9) Additional travel funds.--$250,000 for deployment of
additional textile production verification teams to sub-Saharan
Africa.
(10) Training.--(A) $75,000 for training of Customs
personnel.
(B) $200,000 for training for foreign counterparts in risk
management analytical techniques and for teaching factory
inspection techniques, model law Development, and enforcement
techniques.
(11) Outreach.--$60,000 for outreach efforts to United
States importers.
SEC. 1153. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT.
Of the amount made available for fiscal year 2003 under section
301(b)(2)(A) of the Customs Procedural Reform and Simplification Act of
1978 (19 U.S.C. 2075(b)(2)(A)), as amended by section 1111(b)(1) of
this title, $1,317,000 shall be available until expended for the
Customs Service to provide technical assistance to help sub-Saharan
Africa countries develop and implement effective visa and anti-
transshipment systems as required by the African Growth and Opportunity
Act (title I of Public Law 106-200), as follows:
(1) Travel funds.--$600,000 for import specialists, special
agents, and other qualified Customs personnel to travel to sub-
Saharan Africa countries to provide technical assistance in
developing and implementing effective visa and anti-
transshipment systems.
(2) Import specialists.--$266,000 for 4 import specialists
to be assigned to Customs headquarters to be dedicated to
providing technical assistance to sub-Saharan African countries
for developing and implementing effective visa and anti-
transshipment systems.
(3) Data reconciliation analysts.--$151,000 for 2 data
reconciliation analysts to review apparel shipments.
(4) Special agents.--$300,000 for 2 special agents to be
assigned to Customs headquarters to be available to provide
technical assistance to sub-Saharan African countries in the
performance of investigations and other enforcement
initiatives.
Subtitle B--Office of the United States Trade Representative
SEC. 1161. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 141(g)(1) of the Trade Act of 1974 (19
U.S.C. 2171(g)(1)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``not to exceed'';
(B) in clause (i) to read as follows:
``(i) $30,000,000 for fiscal year 2003.''; and
(C) in clause (ii) to read as follows:
``(ii) $31,000,000 for fiscal year 2004.''; and
(2) in subparagraph (B)--
(A) in clause (i), by adding ``and'' at the end;
(B) by striking clause (ii); and
(C) by redesignating clause (iii) as clause (ii).
(b) Submission of Out-Year Budget Projections.--Section 141(g) of
the Trade Act of 1974 (19 U.S.C. 2171(g)) is amended by adding at the
end the following:
``(3) By not later than the date on which the President submits to
Congress the budget of the United States Government for a fiscal year,
the United States Trade Representative shall submit to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate the projected amount of funds for the succeeding
fiscal year that will be necessary for the Office to carry out its
functions.''.
(c) Additional Staff for Office of Assistant U.S. Trade
Representative for Congressional Affairs.--
(1) In general.--There is authorized to be appropriated
such sums as may be necessary for fiscal year 2003 for the
salaries and expenses of two additional legislative specialist
employee positions within the Office of the Assistant United
States Trade Representative for Congressional Affairs.
(2) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under paragraph (1) are
authorized to remain available until expended.
Subtitle C--United States International Trade Commission
SEC. 1171. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 330(e)(2)(A) of the Tariff Act of 1930 (19
U.S.C. 1330(e)(2)) is amended--
(1) in clause (i) to read as follows:
``(i) $51,400,000 for fiscal year 2003.''; and
(2) in clause (ii) to read as follows:
``(ii) $53,400,000 for fiscal year 2004.''.
(b) Submission of Out-Year Budget Projections.--Section 330(e) of
the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended by adding at
the end the following:
``(4) By not later than the date on which the President submits to
Congress the budget of the United States Government for a fiscal year,
the Commission shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the Senate the
projected amount of funds for the succeeding fiscal year that will be
necessary for the Commission to carry out its functions.''.
Subtitle D--Other Trade Provisions
SEC. 1181. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT FROM DUTY
ACQUIRED ABROAD BY UNITED STATES RESIDENTS.
(a) In General.--Subheading 9804.00.65 of the Harmonized Tariff
Schedule of the United States is amended in the article description
column by striking ``$400'' and inserting ``$800''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect 90 days after the date of enactment of this Act.
SEC. 1182. REGULATORY AUDIT PROCEDURES.
Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b)) is
amended by adding at the end the following:
``(6)(A) If during the course of any audit concluded under
this subsection, the Customs Service identifies overpayments of
duties or fees or over-declarations of quantities or values
that are within the time period and scope of the audit that the
Customs Service has defined, then in calculating the loss of
revenue or monetary penalties under section 592, the Customs
Service shall treat the overpayments or over-declarations on
finally liquidated entries as an offset to any underpayments or
underdeclarations also identified on finally liquidated entries
if such overpayments or over-declarations were not made by the
person being audited for the purpose of violating any provision
of law.
``(B) Nothing in this paragraph shall be construed to
authorize a refund not otherwise authorized under section
520.''.
Subtitle E--Sense of Senate
SEC. 1191. SENSE OF SENATE.
It is the sense of the Senate that fees collected for certain
customs services (commonly referred to as ``customs user fees'')
provided for in section 13031 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c) may be used only for the
operations and programs of the United States Customs Service.
DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI--TRADE PROMOTION AUTHORITY
SEC. 2101. SHORT TITLE; FINDINGS.
(a) Short Title.--This title may be cited as the ``Bipartisan Trade
Promotion Authority Act of 2002''.
(b) Findings.--Congress makes the following findings:
(1) The expansion of international trade is vital to the
national security of the United States. Trade is critical to
the economic growth and strength of the United States and to
its leadership in the world. Stable trading relationships
promote security and prosperity. Trade agreements today serve
the same purposes that security pacts played during the Cold
War, binding nations together through a series of mutual rights
and obligations. Leadership by the United States in
international trade fosters open markets, democracy, and peace
throughout the world.
(2) The national security of the United States depends on
its economic security, which in turn is founded upon a vibrant
and growing industrial base. Trade expansion has been the
engine of economic growth. Trade agreements maximize
opportunities for the critical sectors and building blocks of
the economy of the United States, such as information
technology, telecommunications and other leading technologies,
basic industries, capital equipment, medical equipment,
services, agriculture, environmental technology, and
intellectual property. Trade will create new opportunities for
the United States and preserve the unparalleled strength of the
United States in economic, political, and military affairs. The
United States, secured by expanding trade and economic
opportunities, will meet the challenges of the twenty-first
century.
(3) Support for continued trade expansion requires that
dispute settlement procedures under international trade
agreements not add to or diminish the rights and obligations
provided in such agreements. Nevertheless, in several cases,
dispute settlement panels and the WTO Appellate Body have added
to obligations and diminished rights of the United States under
WTO Agreements. In particular, dispute settlement panels and
the Appellate Body have--
(A) given insufficient deference to the expertise
and fact-finding of the Department of Commerce and the
United States International Trade Commission;
(B) imposed an obligation concerning the causal
relationship between increased imports into the United
States and serious injury to domestic industry
necessary to support a safeguard measure that is
different from the obligation set forth in the
applicable WTO Agreements;
(C) imposed an obligation concerning the exclusion
from safeguards measures of products imported from
countries party to a free trade agreement that is
different from the obligation set forth in the
applicable WTO Agreements;
(D) imposed obligations on the Department of
Commerce with respect to the use of facts available in
antidumping investigations that are different from the
obligations set forth in the applicable WTO Agreements;
and
(E) accorded insufficient deference to the
Department of Commerce's methodology for adjusting
countervailing duties following the privatization of a
subsidized foreign producer.
SEC. 2102. TRADE NEGOTIATING OBJECTIVES.
(a) Overall Trade Negotiating Objectives.--The overall trade
negotiating objectives of the United States for agreements subject to
the provisions of section 2103 are--
(1) to obtain more open, equitable, and reciprocal market
access;
(2) to obtain the reduction or elimination of barriers and
distortions that are directly related to trade and that
decrease market opportunities for United States exports or
otherwise distort United States trade;
(3) to further strengthen the system of international
trading disciplines and procedures, including dispute
settlement;
(4) to foster economic growth, raise living standards, and
promote full employment in the United States and to enhance the
global economy;
(5) to ensure that trade and environmental policies are
mutually supportive and to seek to protect and preserve the
environment and enhance the international means of doing so,
while optimizing the use of the world's resources;
(6) to promote respect for worker rights and the rights of
children consistent with core labor standards of the
International Labor Organization (as defined in section
2113(2)) and an understanding of the relationship between trade
and worker rights;
(7) to seek provisions in trade agreements under which
parties to those agreements strive to ensure that they do not
weaken or reduce the protections afforded in domestic
environmental and labor laws as an encouragement fortrade; and
(8) to ensure that trade agreements afford small businesses
equal access to international markets, equitable trade
benefits, expanded export market opportunities, and provide for
the reduction or elimination of trade barriers that
disproportionately impact small business.
(b) Principal Trade Negotiating Objectives.--
(1) Trade barriers and distortions.--The principal
negotiating objectives of the United States regarding trade
barriers and other trade distortions are--
(A) to expand competitive market opportunities for
United States exports including motor vehicles and
vehicle parts and to obtain fairer and more open
conditions of trade by reducing or eliminating tariff
and nontariff barriers and policies and practices of
foreign governments directly related to trade that
decrease market opportunities for United States exports
or otherwise distort United States trade; and
(B) to obtain reciprocal tariff and nontariff
barrier elimination agreements, with particular
attention to those tariff categories covered in section
111(b) of the Uruguay Round Agreements Act (19 U.S.C.
3521(b)).
(2) Trade in services.--The principal negotiating objective
of the United States regarding trade in services is to reduce
or eliminate barriers to international trade in services,
including regulatory and other barriers that deny national
treatment and market access or unreasonably restrict the
establishment or operations of service suppliers.
(3) Foreign investment.--Recognizing that United States law
on the whole provides a high level of protection for
investment, consistent with or greater than the level required
by international law, the principal negotiating objectives of
the United States regarding foreign investment are to reduce or
eliminate artificial or trade-distorting barriers to trade-
related foreign investment, while ensuring that foreign
investors in the United States are not accorded greater rights
than United States investors in the United States, and to
secure for investors important rights comparable to those that
would be available under United States legal principles and
practice, by--
(A) reducing or eliminating exceptions to the
principle of national treatment;
(B) freeing the transfer of funds relating to
investments;
(C) reducing or eliminating performance
requirements, forced technology transfers, and other
unreasonable barriers to the establishment and
operation of investments;
(D) seeking to establish standards for
expropriation and compensation for expropriation,
consistent with United States legal principles and
practice;
(E) seeking to establish standards for fair and
equitable treatment consistent with United States legal
principles and practice, including the principle of due
process;
(F) providing meaningful procedures for resolving
investment disputes;
(G) seeking to improve mechanisms used to resolve
disputes between an investor and a government through--
(i) mechanisms to eliminate frivolous
claims and to deter the filing of frivolous
claims;
(ii) procedures to ensure the efficient
selection of arbitrators and the expeditious
disposition of claims;
(iii) procedures to enhance opportunities
for public input into the formulation of
government positions; and
(iv) establishment of a single appellate
body to review decisions in investor-to-
government disputes and thereby provide
coherence to the interpretations of investment
provisions in trade agreements; and
(H) ensuring the fullest measure of transparency in
the dispute settlement mechanism, to the extent
consistent with the need to protect information that is
classified or business confidential, by--
(i) ensuring that all requests for dispute
settlement are promptly made public;
(ii) ensuring that--
(I) all proceedings, submissions,
findings, and decisions are promptly
made public;
(II) all hearings are open to the
public; and
(iii) establishing a mechanism for
acceptance of amicus curiae submissions from
businesses, unions, and nongovernmental
organizations.
(4) Intellectual property.--The principal negotiating
objectives of the United States regarding trade-related
intellectual property are--
(A) to further promote adequate and effective
protection of intellectual property rights, including
through--
(i)(I) ensuring accelerated and full
implementation of the Agreement on Trade-
Related Aspects of Intellectual Property Rights
referred to in section 101(d)(15) of the
Uruguay Round Agreements Act (19 U.S.C.
3511(d)(15)), particularly with respect to
meeting enforcement obligations under that
agreement; and
(II) ensuring that the provisions of any
multilateral or bilateral trade agreement
governing intellectual property rights that is
entered into by the United States reflect a
standard of protection similar to that found in
United States law;
(ii) providing strong protection for new
and emerging technologies and new methods of
transmitting and distributing products
embodying intellectual property;
(iii) preventing or eliminating
discrimination with respect to matters
affecting the availability, acquisition, scope,
maintenance, use, and enforcement of
intellectual property rights;
(iv) ensuring that standards of protection
and enforcement keep pace with technological
developments, and in particular ensuring that
rightholders have the legal and technological
means to control the use of their works through
the Internet and other global communication
media, and to prevent the unauthorized use of
their works; and
(v) providing strong enforcement of
intellectual property rights, including through
accessible, expeditious, and effective civil,
administrative, and criminal enforcement
mechanisms;
(B) to secure fair, equitable, and
nondiscriminatory market access opportunities for
United States persons that rely upon intellectual
property protection; and
(C) to respect the Declaration on the TRIPS
Agreement and Public Health, adopted by the World Trade
Organization at the Fourth Ministerial Conference at
Doha, Qatar on November 14, 2001.
(5) Transparency.--The principal negotiating objective of
the United States with respect to transparency is to obtain
wider and broader application of the principle of transparency
through--
(A) increased and more timely public access to
information regarding trade issues and the activities
of international trade institutions;
(B) increased openness at the WTO and other
international trade fora by increasing public access to
appropriate meetings, proceedings, and submissions,
including with regard to dispute settlement and
investment; and
(C) increased and more timely public access to all
notifications and supporting documentation submitted by
parties to the WTO.
(6) Anti-corruption.--The principal negotiating objectives
of the United States with respect to the use of money or other
things of value to influence acts, decisions, or omissions of
foreign governments or officials or to secure any improper
advantage in a manner affecting trade are--
(A) to obtain high standards and appropriate
domestic enforcement mechanisms applicable to persons
from all countries participating in the applicable
trade agreement that prohibit such attempts to
influence acts, decisions, or omissions of foreign
governments; and
(B) to ensure that such standards do not place
United States persons at a competitive disadvantage in
international trade.
(7) Improvement of the wto and multilateral trade
agreements.--The principal negotiating objectives of the United
States regarding the improvement of the World Trade
Organization, the Uruguay Round Agreements, and other
multilateral and bilateral trade agreements are--
(A) to achieve full implementation and extend the
coverage of the World Trade Organization and such
agreements to products, sectors, and conditions of
trade not adequately covered; and
(B) to expand country participation in and
enhancement of the Information Technology Agreement and
other trade agreements.
(8) Regulatory practices.--The principal negotiating
objectives of the United States regarding the use of government
regulation or other practices by foreign governments to provide
a competitive advantage to their domestic producers, service
providers, or investors and thereby reduce market access for
United States goods, services, and investments are--
(A) to achieve increased transparency and
opportunity for the participation of affected parties
in the development of regulations;
(B) to require that proposed regulations be based
on sound science, cost-benefit analysis, risk
assessment, or other objective evidence;
(C) to establish consultative mechanisms among
parties to trade agreements to promote increased
transparency in developing guidelines, rules,
regulations, and laws for government procurement and
other regulatory regimes; and
(D) to achieve the elimination of government
measures such as price controls and reference pricing
which deny full market access for United States
products.
(9) Electronic commerce.--The principal negotiating
objectives of the United States with respect to electronic
commerce are--
(A) to ensure that current obligations, rules,
disciplines, and commitments under the World Trade
Organization apply to electronic commerce;
(B) to ensure that--
(i) electronically delivered goods and
services receive no less favorable treatment
under trade rules and commitments than like
products delivered in physical form; and
(ii) the classification of such goods and
services ensures the most liberal trade
treatment possible;
(C) to ensure that governments refrain from
implementing trade-related measures that impede
electronic commerce;
(D) where legitimate policy objectives require
domestic regulations that affect electronic commerce,
to obtain commitments that any such regulations are the
least restrictive on trade, nondiscriminatory, and
transparent, and promote an open market environment;
and
(E) to extend the moratorium of the World Trade
Organization on duties on electronic transmissions.
(10) Reciprocal trade in agriculture.--
(A) In general.--The principal negotiating
objective of the United States with respect to
agriculture is to obtain competitive opportunities for
United States exports of agricultural commodities in
foreign markets substantially equivalent to the
competitive opportunities afforded foreign exports in
United States markets and to achieve fairer and more
open conditions of trade in bulk, specialty crop, and
value-added commodities by--
(i) reducing or eliminating, by a date
certain, tariffs or other charges that decrease
market opportunities for United States
exports--
(I) giving priority to those
products that are subject to
significantly higher tariffs or subsidy
regimes of major producing countries;
and
(II) providing reasonable
adjustment periods for United States
import-sensitive products, in close
consultation with the Congress on such
products before initiating tariff
reduction negotiations;
(ii) reducing tariffs to levels that are
the same as or lower than those in the United
States;
(iii) seeking to eliminate all export
subsidies on agricultural commodities while
maintaining bona fide food aid and preserving
United States agricultural market development
and export credit programs that allow the
United States to compete with other foreign
export promotion efforts;
(iv) allowing the preservation of programs
that support family farms and rural communities
but do not distort trade;
(v) developing disciplines for domestic
support programs, so that production that is in
excess of domestic food security needs is sold
at world prices;
(vi) eliminating Government policies that
create price-depressing surpluses;
(vii) eliminating state trading enterprises
whenever possible;
(viii) developing, strengthening, and
clarifying rules and effective dispute
settlement mechanisms to eliminate practices
that unfairly decrease United States market
access opportunities or distort agricultural
markets to the detriment of the United States,
particularly with respect to import-sensitive
products, including--
(I) unfair or trade-distorting
activities of state trading enterprises
and other administrative mechanisms,
with emphasis on requiring price
transparency in the operation of state
trading enterprises and such other
mechanisms in order to end cross
subsidization, price discrimination,
and price undercutting;
(II) unjustified trade restrictions
or commercial requirements, such as
labeling, that affect new technologies,
including biotechnology;
(III) unjustified sanitary or
phytosanitary restrictions, including
those not based on scientific
principles in contravention of the
Uruguay Round Agreements;
(IV) other unjustified technical
barriers to trade; and
(V) restrictive rules in the
administration of tariff rate quotas;
(ix) eliminating practices that adversely
affect trade in perishable or cyclical
products, while improving import relief
mechanisms to recognize the unique
characteristics of perishable and cyclical
agriculture;
(x) ensuring that the use of import relief
mechanisms for perishable and cyclical
agriculture are as accessible and timely to
growers in the United States as those
mechanisms that are used by other countries;
(xi) taking into account whether a party to
the negotiations has failed to adhere to the
provisions of already existing trade agreements
with the United States or has circumvented
obligations under those agreements;
(xii) taking into account whether a product
is subject to market distortions by reason of a
failure of a major producing country to adhere
to the provisions of already existing trade
agreements with the United States or by the
circumvention by that country of its
obligations under those agreements;
(xiii) otherwise ensuring that countries
that accede to the World Trade Organization
have made meaningful market liberalization
commitments in agriculture;
(xiv) taking into account the impact that
agreements covering agriculture to which the
United States is a party, including the North
American Free Trade Agreement, have on the
United States agricultural industry;
(xv) maintaining bona fide food assistance
programs and preserving United States market
development and export credit programs; and
(xvi) strive to complete a general
multilateral round in the World Trade
Organization by January 1, 2005, and seek the
broadest market access possible in
multilateral, regional, and bilateral
negotiations, recognizing the effect that
simultaneous sets of negotiations may have on
United States import-sensitive commodities
(including those subject to tariff-rate
quotas).
(B) Consultation.--
(i) Before commencing negotiations.--Before
commencing negotiations with respect to
agriculture, the United States Trade
Representative, in consultation with the
Congress, shall seek to develop a position on
the treatment of seasonal and perishable
agricultural products to be employed in the
negotiations in order to develop an
international consensus on the treatment of
seasonal or perishable agricultural products in
investigations relating to dumping and
safeguards and in any other relevant area.
(ii) During negotiations.--During any
negotiations on agricultural subsidies, the
United States Trade Representative shall seek
to establish the common base year for
calculating the Aggregated Measurement of
Support (as defined in the Agreement on
Agriculture) as the end of each country's
Uruguay Round implementation period, as
reported in each country's Uruguay Round market
access schedule.
(iii) Scope of objective.--The negotiating
objective provided in subparagraph (A) applies
with respect to agricultural matters to be
addressed in any trade agreement entered into
under section 2103 (a) or (b), including any
trade agreement entered into under section 2103
(a) or (b) that provides for accession to a
trade agreement to which the United States is
already a party, such as the North American
Free Trade Agreement and the United States-
Canada Free Trade Agreement.
(11) Labor and the environment.--The principal negotiating
objectives of the United States with respect to labor and the
environment are--
(A) to ensure that a party to a trade agreement
with the United States does not fail to effectively
enforce its environmental or labor laws, through a
sustained or recurring course of action or inaction, in
a manner affecting trade between the United States and
that party after entry into force of a trade agreement
between those countries;
(B) to recognize that parties to a trade agreement
retain the right to exercise discretion with respect to
investigatory, prosecutorial, regulatory, and
compliance matters and to make decisions regarding the
allocation of resources to enforcement with respect to
other labor or environmental matters determined to have
higher priorities, and to recognize that a country is
effectively enforcing its laws if a course of action or
inaction reflects a reasonable exercise of such
discretion, or results from a bona fide decision
regarding the allocation of resources and no
retaliation may be authorized based on the exercise of
these rights or the right to establish domestic labor
standards and levels of environmental protection;
(C) to strengthen the capacity of United States
trading partners to promote respect for core labor
standards (as defined in section 2113(2));
(D) to strengthen the capacity of United States
trading partners to protect the environment through the
promotion of sustainable development;
(E) to reduce or eliminate government practices or
policies that unduly threaten sustainable development;
(F) to seek market access, through the elimination
of tariffs and nontariff barriers, for United States
environmental technologies, goods, and services; and
(G) to ensure that labor, environmental, health, or
safety policies and practices of the parties to trade
agreements with the United States do not arbitrarily or
unjustifiably discriminate against United States
exports or serve as disguised barriers to trade.
(12) Human rights and democracy.--The principal negotiating
objective regarding human rights and democracy is to obtain
provisions in trade agreements that require parties to those
agreements to strive to protect internationally recognized
civil, political, and human rights.
(13) Dispute settlement and enforcement.--The principal
negotiating objectives of the United States with respect to
dispute settlement and enforcement of trade agreements are--
(A) to seek provisions in trade agreements
providing for resolution of disputes between
governments under those trade agreements in an
effective, timely, transparent, equitable, and reasoned
manner, requiring determinations based on facts and the
principles of the agreements, with the goal of
increasing compliance with the agreements;
(B) to seek to strengthen the capacity of the Trade
Policy Review Mechanism of the World Trade Organization
to review compliance with commitments;
(C) to seek improved adherence by panels convened
under the WTO Understanding on Rules and Procedures
Governing the Settlement of Disputes and by the WTO
Appellate Body to the standard of review applicable
under the WTO Agreement involved in the dispute,
including greater deference, where appropriate, to the
fact finding and technical expertise of national
investigating authorities;
(D) to seek provisions encouraging the early
identification and settlement of disputes through
consultation;
(E) to seek provisions to encourage the provision
of trade-expanding compensation if a party to a dispute
under the agreement does not come into compliance with
its obligations under the agreement;
(F) to seek provisions to impose a penalty upon a
party to a dispute under the agreement that--
(i) encourages compliance with the
obligations of the agreement;
(ii) is appropriate to the parties, nature,
subject matter, and scope of the violation; and
(iii) has the aim of not adversely
affecting parties or interests not party to the
dispute while maintaining the effectiveness of
the enforcement mechanism; and
(G) to seek provisions that treat United States
principal negotiating objectives equally with respect
to--
(i) the ability to resort to dispute
settlement under the applicable agreement;
(ii) the availability of equivalent dispute
settlement procedures; and
(iii) the availability of equivalent
remedies.
(14) Border taxes.--The principal negotiating objective of
the United States regarding border taxes is to obtain a
revision of the WTO rules with respect to the treatment of
border adjustments for internal taxes to redress the
disadvantage to countries relying primarily on direct taxes for
revenue rather than indirect taxes.
(15) WTO extended negotiations.--The principal negotiating
objectives of the United States regarding trade in civil
aircraft are those set forth in section 135(c) of the Uruguay
Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules of
origin are the conclusion of an agreement described in section
132 of that Act (19 U.S.C. 3552).
(16) Textile negotiations.--
(A) In general.--The principal negotiating
objectives of the United States with respect to trade
in textiles and apparel articles is to obtain
competitive opportunities for United States exports of
textiles and apparel in foreign markets substantially
equivalent to the competitive opportunities afforded
foreign exports in United States markets and to achieve
fairer and more open conditions of trade in textiles
and apparel by--
(i) reducing to levels that are the same
as, or lower than, those in the United States,
or eliminating, by a date certain, tariffs or
other charges that decrease market
opportunities for United States exports of
textiles and apparel;
(ii) eliminating by a date certain non-
tariff barriers that decrease market
opportunities for United States textile and
apparel articles;
(iii) reducing or eliminating subsidies
that decrease market opportunities for United
States exports or unfairly distort textile and
apparel markets to the detriment of the United
States;
(iv) developing, strengthening, and
clarifying rules to eliminate practices that
unfairly decrease United States market access
opportunities or distort textile and apparel
markets to the detriment of the United States;
(v) taking into account whether a party to
the negotiations has failed to adhere to the
provisions of already existing trade agreements
with the United States or has circumvented
obligations under those agreements;
(vi) taking into account whether a product
is subject to market distortions by reason of a
failure of a major producing country to adhere
to the provisions of already existing trade
agreements with the United States or by the
circumvention by that country of its
obligations under those agreements;
(vii) otherwise ensuring that countries
that accede to the World Trade Organization
have made meaningful market liberalization
commitments in textiles and apparel; and
(viii) taking into account the impact that
agreements covering textiles and apparel trade
to which the United States is already a party
are having on the United States textile and
apparel industry.
(B) Scope of objective.--The negotiating objectives
set forth in subparagraph (A) apply with respect to
trade in textile and apparel articles to be addressed
in any trade agreement entered into under section 2103
(a) or (b), including any trade agreement entered under
section 2103 (a) or (b) that provides for accession to
a trade agreement to which the United States is already
a party.
(17) Worst forms of child labor.--The principal negotiating
objectives of the United States regarding the trade-related
aspects of the worst forms of child labor are--
(A) to prevent distortions in the conduct of
international trade caused by the use of the worst
forms of child labor, in whole or in part, in the
production of goods for export in international
commerce; and
(B) to redress unfair and illegitimate competition
based upon the use of the worst forms of child labor,
in whole or in part, in the production of goods for
export in international commerce, including through--
(i) promoting universal ratification and
full compliance by all trading nations with ILO
Convention No. 182 Concerning the Prohibition
and Immediate Action for the Elimination of the
Worst Forms of Child Labor, particularly with
respect to meeting enforcement obligations
under that Convention and related international
agreements;
(ii) pursuing action under Article XX of
GATT 1994 to allow WTO members to restrict
imports of goods found to be produced with the
worst forms of child labor;
(iii) seeking commitments by parties to any
multilateral or bilateral trade agreement that
is entered into by the United States to ensure
that national laws reflect international
standards regarding prevention of the use of
the worst forms of child labor, especially in
the conduct of international trade; and
(iv) seeking commitments by trade agreement
parties to vigorously enforce laws prohibiting
the use of the worst forms of child labor,
especially in the conduct of international
trade, through accessible, expeditious, and
effective civil, administrative, and criminal
enforcement mechanisms.
(c) Promotion of Certain Priorities.--In order to address and
maintain United States competitiveness in the global economy, the
President shall--
(1) seek greater cooperation between the WTO and the ILO;
(2) seek to establish consultative mechanisms among parties
to trade agreements to strengthen the capacity of United States
trading partners to promote respect for core labor standards
(as defined in section 2113(2)), and report to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate on the content and operation
of such mechanisms;
(3) seek to establish consultative mechanisms among parties
to trade agreements to strengthen the capacity of United States
trading partners to develop and implement standards for the
protection of the environment and human health based on sound
science, and report to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate on the content and operation of such mechanisms;
(4) conduct environmental reviews of future trade and
investment agreements, consistent with Executive Order 13141 of
November 16, 1999 and the relevant guidelines, and report to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate on such reviews;
(5) review the impact of future trade agreements on United
States employment, modeled after Executive Order 13141, taking
into account the impact on job security, the level of
compensation of new jobs and existing jobs, the displacement of
employment, and the regional distribution of employment,
utilizing experience from previous trade agreements and
alternative models of employment analysis, report to the
Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate on such review, and make
that report available to the public;
(6) take into account other legitimate United States
domestic objectives including, but not limited to, the
protection of legitimate health or safety, essential security,
and consumer interests and the law and regulations related
thereto;
(7) have the Secretary of Labor consult with any country
seeking a trade agreement with the United States concerning
that country's labor laws and provide technical assistance to
that country if needed;
(8) in connection with any trade negotiations entered into
under this Act, the President shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a meaningful labor rights
report of the country, or countries, with respect to which the
President is negotiating, on a time frame determined in
accordance with section 2107(b)(2)(E);
(9)(A) preserve the ability of the United States to enforce
rigorously its trade laws, including the antidumping,
countervailing duty, and safeguard laws, and avoid agreements
that lessen the effectiveness of domestic and international
disciplines on unfair trade, especially dumping and subsidies,
or that lessen the effectiveness of domestic and international
safeguard provisions, in order to ensure that United States
workers, agricultural producers, and firms can compete fully on
fair terms and enjoy the benefits of reciprocal trade
concessions; and
(B) address and remedy market distortions that lead to
dumping and subsidization, including overcapacity,
cartelization, and market-access barriers.
(10) continue to promote consideration of multilateral
environmental agreements and consult with parties to such
agreements regarding the consistency of any such agreement that
includes trade measures with existing environmental exceptions
under Article XX of the GATT 1994;
(11) report to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate,
not later than 12 months after the imposition of a penalty or
remedy by the United States permitted by a trade agreement to
which this title applies, on the effectiveness of the penalty
or remedy applied under United States law in enforcing United
States rights under the trade agreement; and
(12) seek to establish consultative mechanisms among
parties to trade agreements to examine the trade consequences
of significant and unanticipated currency movements and to
scrutinize whether a foreign government engaged in a pattern of
manipulating its currency to promote a competitive advantage in
international trade.
The report required under paragraph (11) shall address whether the
penalty or remedy was effective in changing the behavior of the
targeted party and whether the penalty or remedy had any adverse impact
on parties or interests not party to the dispute.
(d) Consultations.--
(1) Consultations with congressional advisers.--In the
course of negotiations conducted under this title, the United
States Trade Representative shall consult closely and on a
timely basis with, and keep fully apprised of the negotiations,
the Congressional Oversight Group convened under section 2107
and all committees of the House of Representatives and the
Senate with jurisdiction over laws that would be affected by a
trade agreement resulting from the negotiations.
(2) Consultation before agreement initialed.--In the course
of negotiations conducted under this title, the United States
Trade Representative shall--
(A) consult closely and on a timely basis
(including immediately before initialing an agreement)
with, and keep fully apprised of the negotiations, the
congressional advisers for trade policy and
negotiations appointed under section 161 of the Trade
Act of 1974 (19 U.S.C. 2211), the Committee on Ways and
Means of the House of Representatives, the Committee on
Finance of the Senate, and the Congressional Oversight
Group convened under section 2107; and
(B) with regard to any negotiations and agreement
relating to agricultural trade, also consult closely
and on a timely basis (including immediately before
initialing an agreement) with, and keep fully apprised
of the negotiations, the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
(e) Adherence to Obligations Under Uruguay Round Agreements.--In
determining whether to enter into negotiations with a particular
country, the President shall take into account the extent to which that
country has implemented, or has accelerated the implementation of, its
obligations under the Uruguay Round Agreements.
SEC. 2103. TRADE AGREEMENTS AUTHORITY.
(a) Agreements Regarding Tariff Barriers.--
(1) In general.--Whenever the President determines that one
or more existing duties or other import restrictions of any
foreign country or the United States are unduly burdening and
restricting the foreign trade of the United States and that the
purposes, policies, priorities, and objectives of this title
will be promoted thereby, the President--
(A) may enter into trade agreements with foreign
countries before--
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection (c);
and
(B) may, subject to paragraphs (2) and (3),
proclaim--
(i) such modification or continuance of any
existing duty,
(ii) such continuance of existing duty-free
or excise treatment, or
(iii) such additional duties,
as the President determines to be required or
appropriate to carry out any such trade agreement.
The President shall notify the Congress of the President's
intention to enter into an agreement under this subsection.
(2) Limitations.--No proclamation may be made under
paragraph (1) that--
(A) reduces any rate of duty (other than a rate of
duty that does not exceed 5 percent ad valorem on the
date of the enactment of this Act) to a rate of duty
which is less than 50 percent of the rate of such duty
that applies on such date of enactment;
(B) reduces the rate of duty below that applicable
under the Uruguay Round Agreements, on any import
sensitive agricultural product; or
(C) increases any rate of duty above the rate that
applied on the date of the enactment of this Act.
(3) Aggregate reduction; exemption from staging.--
(A) Aggregate reduction.--Except as provided in
subparagraph (B), the aggregate reduction in the rate
of duty on any article which is in effect on any day
pursuant to a trade agreement entered into under
paragraph (1) shall not exceed the aggregate reduction
which would have been in effect on such day if--
(i) a reduction of 3 percent ad valorem or
a reduction of one-tenth of the total
reduction, whichever is greater, had taken
effect on the effective date of the first
reduction proclaimed under paragraph (1) to
carry out such agreement with respect to such
article; and
(ii) a reduction equal to the amount
applicable under clause (i) had taken effect at
1-year intervals after the effective date of
such first reduction.
(B) Exemption from staging.--No staging is required
under subparagraph (A) with respect to a duty reduction
that is proclaimed under paragraph (1) for an article
of a kind that is not produced in the United States.
The United States International Trade Commission shall
advise the President of the identity of articles that
may be exempted from staging under this subparagraph.
(4) Rounding.--If the President determines that such action
will simplify the computation of reductions under paragraph
(3), the President may round an annual reduction by an amount
equal to the lesser of--
(A) the difference between the reduction without
regard to this paragraph and the next lower whole
number; or
(B) one-half of 1 percent ad valorem.
(5) Other limitations.--A rate of duty reduction that may
not be proclaimed by reason of paragraph (2) may take effect
only if a provision authorizing such reduction is included
within an implementing bill provided for under section 2105 and
that bill is enacted into law.
(6) Other tariff modifications.--Notwithstanding paragraphs
(1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the
consultation and layover requirements of section 115 of the
Uruguay Round Agreements Act, the President may proclaim the
modification of any duty or staged rate reduction of any duty
set forth in Schedule XX, as defined in section 2102(5) of that
Act, if the United States agrees to such modification or staged
rate reduction in a negotiation for the reciprocal elimination
or harmonization of duties under the auspices of the World
Trade Organization.
(7) Authority under uruguay round agreements act not
affected.--Nothing in this subsection shall limit the authority
provided to the President under section 111(b) of the Uruguay
Round Agreements Act (19 U.S.C. 3521(b)).
(b) Agreements Regarding Tariff and Nontariff Barriers.--
(1) In general.--
(A) Determination by president.--Whenever the
President determines that--
(i) one or more existing duties or any
other import restriction of any foreign country
or the United States or any other barrier to,
or other distortion of, international trade
unduly burdens or restricts the foreign trade
of the United States or adversely affects the
United States economy; or
(ii) the imposition of any such barrier or
distortion is likely to result in such a
burden, restriction, or effect;
and that the purposes, policies, priorities, and
objectives of this title will be promoted thereby, the
President may enter into a trade agreement described in
subparagraph (B) during the period described in
subparagraph (C).
(B) Agreement to reduce or eliminate certain
distortion.--The President may enter into a trade
agreement under subparagraph (A) with foreign countries
providing for--
(i) the reduction or elimination of a duty,
restriction, barrier, or other distortion
described in subparagraph (A), or
(ii) the prohibition of, or limitation on
the imposition of, such barrier or other
distortion.
(C) Time period.--The President may enter into a
trade agreement under this paragraph before--
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection (c).
(2) Conditions.--A trade agreement may be entered into
under this subsection only if such agreement makes progress in
meeting the applicable objectives described in section 2102 (a)
and (b) and the President satisfies the conditions set forth in
section 2104.
(3) Bills qualifying for trade authorities procedures.--
(A) Application of expedited procedures.--The
provisions of section 151 of the Trade Act of 1974 (in
this title referred to as ``trade authorities
procedures'') apply to a bill of either House of
Congress which contains provisions described in
subparagraph (B) to the same extent as such section 151
applies to implementing bills under that section. A
bill to which this paragraph applies shall hereafter in
this title be referred to as an ``implementing bill''.
(B) Provisions described.--The provisions referred
to in subparagraph (A) are--
(i) a provision approving a trade agreement
entered into under this subsection and
approving the statement of administrative
action, if any, proposed to implement such
trade agreement; and
(ii) if changes in existing laws or new
statutory authority are required to implement
such trade agreement or agreements, provisions,
necessary or appropriate to implement such
trade agreement or agreements, either repealing
or amending existing laws or providing new
statutory authority.
(4) Limitations on trade authorities procedures.--
(A) In general.--Notwithstanding any other
provision of law, the provisions of section 151 of the
Trade Act of 1974 (trade authorities procedures) shall
not apply to any provision in an implementing bill
being considered by the Senate that modifies or amends,
or requires a modification of, or an amendment to, any
law of the United States that provides safeguards from
unfair foreign trade practices to United States
businesses or workers, including--
(i) imposition of countervailing and
antidumping duties (title VII of the Tariff Act
of 1930; 19 U.S.C. 1671 et seq.);
(ii) protection from unfair methods of
competition and unfair acts in the importation
of articles (section 337 of the Tariff Act of
1930; 19 U.S.C. 1337);
(iii) relief from injury caused by import
competition (title II of the Trade Act of 1974;
19 U.S.C. 2251 et seq.);
(iv) relief from unfair trade practices
(title III of the Trade Act of 1974; 19 U.S.C.
2411 et seq.); or
(v) national security import restrictions
(section 232 of the Trade Expansion Act of
1962; 19 U.S.C. 1862).
(B) Point of order in senate.--
(i) In general.--When the Senate is
considering an implementing bill, upon a point
of order being made by any Senator against any
part of the implementing bill that contains
material in violation of subparagraph (A), and
the point of order is sustained by the
Presiding Officer, the part of the implementing
bill against which the point of order is
sustained shall be stricken from the bill.
(ii) Waivers and appeals.--
(I) Waivers.--Before the Presiding
Officer rules on a point of order
described in clause (i), any Senator
may move to waive the point of order
and the motion to waive shall not be
subject to amendment. A point of order
described in clause (i) is waived only
by the affirmative vote of a majority
of the Members of the Senate, duly
chosen and sworn.
(II) Appeals.--After the Presiding
Officer rules on a point of order under
this subparagraph, any Senator may
appeal the ruling of the Presiding
Officer on the point of order as it
applies to some or all of the
provisions on which the Presiding
Officer ruled. A ruling of the
Presiding Officer on a point of order
described in clause (i) is sustained
unless a majority of the Members of the
Senate, duly chosen and sworn, vote not
to sustain the ruling.
(III) Debate.--Debate on a motion
to waive under subclause (I) or on an
appeal of the ruling of the Presiding
Officer under subclause (II) shall be
limited to 1 hour. The time shall be
equally divided between, and controlled
by, the majority leader and the
minority leader, or their designees.
(c) Extension Disapproval Process for Congressional Trade
Authorities Procedures.--
(1) In general.--Except as provided in section 2105(b)--
(A) the trade authorities procedures apply to
implementing bills submitted with respect to trade
agreements entered into under subsection (b) before
July 1, 2005; and
(B) the trade authorities procedures shall be
extended to implementing bills submitted with respect
to trade agreements entered into under subsection (b)
after June 30, 2005, and before July 1, 2007, if (and
only if)--
(i) the President requests such extension
under paragraph (2); and
(ii) neither House of the Congress adopts
an extension disapproval resolution under
paragraph (5) before June 1, 2005.
(2) Report to congress by the president.--If the President
is of the opinion that the trade authorities procedures should
be extended to implementing bills described in paragraph
(1)(B), the President shall submit to the Congress, not later
than March 1, 2005, a written report that contains a request
for such extension, together with--
(A) a description of all trade agreements that have
been negotiated under subsection (b) and the
anticipated schedule for submitting such agreements to
the Congress for approval;
(B) a description of the progress that has been
made in negotiations to achieve the purposes, policies,
priorities, and objectives of this title, and a
statement that such progress justifies the continuation
of negotiations; and
(C) a statement of the reasons why the extension is
needed to complete the negotiations.
(3) Other reports to congress.--
(A) Report by the advisory committee.--The
President shall promptly inform the Advisory Committee
for Trade Policy and Negotiations established under
section 135 of the Trade Act of 1974 (19 U.S.C. 2155)
of the President's decision to submit a report to the
Congress under paragraph (2). The Advisory Committee
shall submit to the Congress as soon as practicable,
but not later than May 1, 2005, a written report that
contains--
(i) its views regarding the progress that
has been made in negotiations to achieve the
purposes, policies, priorities, and objectives
of this title; and
(ii) a statement of its views, and the
reasons therefor, regarding whether the
extension requested under paragraph (2) should
be approved or disapproved.
(B) Report by itc.--The President shall promptly
inform the International Trade Commission of the
President's decision to submit a report to the Congress
under paragraph (2). The International Trade Commission
shall submit to the Congress as soon as practicable,
but not later than May 1, 2005, a written report that
contains a review and analysis of the economic impact
on the United States of all trade agreements
implemented between the date of enactment of this Act
and the date on which the President decides to seek an
extension requested under paragraph (2).
(4) Status of reports.--The reports submitted to the
Congress under paragraphs (2) and (3), or any portion of such
reports, may be classified to the extent the President
determines appropriate.
(5) Extension disapproval resolutions.--
(A) Definition.--For purposes of paragraph (1), the
term ``extension disapproval resolution'' means a
resolution of either House of the Congress, the sole
matter after the resolving clause of which is as
follows: ``That the __________ disapproves the request
of the President for the extension, under section
2103(c)(1)(B)(i) of the Bipartisan Trade Promotion
Authority Act of 2002, of the trade authorities
procedures under that Act to any implementing bill
submitted with respect to any trade agreement entered
into under section 2103(b) of that Act after June 30,
2005.'', with the blank space being filled with the
name of the resolving House of the Congress.
(B) Introduction.--Extension disapproval
resolutions--
(i) may be introduced in either House of
the Congress by any member of such House; and
(ii) shall be referred, in the House of
Representatives, to the Committee on Ways and
Means and, in addition, to the Committee on
Rules.
(C) Application of section 152 of the trade act of
1974.--The provisions of section 152 (d) and (e) of the
Trade Act of 1974 (19 U.S.C. 2192 (d) and (e))
(relating to the floor consideration of certain
resolutions in the House and Senate) apply to extension
disapproval resolutions.
(D) Limitations.--It is not in order for--
(i) the Senate to consider any extension
disapproval resolution not reported by the
Committee on Finance;
(ii) the House of Representatives to
consider any extension disapproval resolution
not reported by the Committee on Ways and Means
and, in addition, by the Committee on Rules; or
(iii) either House of the Congress to
consider an extension disapproval resolution
after June 30, 2005.
(d) Commencement of Negotiations.--In order to contribute to the
continued economic expansion of the United States, the President shall
commence negotiations covering tariff and nontariff barriers affecting
any industry, product, or service sector, and expand existing sectoral
agreements to countries that are not parties to those agreements, in
cases where the President determines that such negotiations are
feasible and timely and would benefit the United States. Such sectors
include agriculture, commercial services, intellectual property rights,
industrial and capital goods, government procurement, information
technology products, environmental technology and services, medical
equipment and services, civil aircraft, and infrastructure products. In
so doing, the President shall take into account all of the principal
negotiating objectives set forth in section 2102(b).
SEC. 2104. CONSULTATIONS AND ASSESSMENT.
(a) Notice and Consultation Before Negotiation.--The President,
with respect to any agreement that is subject to the provisions of
section 2103(b), shall--
(1) provide, at least 90 calendar days before initiating
negotiations, written notice to the Congress of the President's
intention to enter into the negotiations and set forth therein
the date the President intends to initiate such negotiations,
the specific United States objectives for the negotiations, and
whether the President intends to seek an agreement, or changes
to an existing agreement;
(2) before and after submission of the notice, consult
regarding the negotiations with the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives, such other committees of the House and Senate
as the President deems appropriate, and the Congressional
Oversight group convened under section 2107; and
(3) upon the request of a majority of the members of the
Congressional Oversight Group under section 2107(c), meet with
the Congressional Oversight Group before initiating the
negotiations or at any other time concerning the negotiations.
(b) Negotiations Regarding Agriculture and Fishing Industry.--
(1) In general.--Before initiating or continuing
negotiations the subject matter of which is directly related to
the subject matter under section 2102(b)(10)(A)(i) with any
country, the President shall assess whether United States
tariffs on agricultural products that were bound under the
Uruguay Round Agreements are lower than the tariffs bound by
that country. In addition, the President shall consider whether
the tariff levels bound and applied throughout the world with
respect to imports from the United States are higher than
United States tariffs and whether the negotiation provides an
opportunity to address any such disparity. The President shall
consult with the Committee on Ways and Means and the Committee
on Agriculture of the House of Representatives and the
Committee on Finance and the Committee on Agriculture,
Nutrition, and Forestry of the Senate concerning the results of
the assessment, whether it is appropriate for the United States
to agree to further tariff reductions based on the conclusions
reached in the assessment, and how all applicable negotiating
objectives will be met.
(2) Special consultations on import sensitive products.--
(A) In general.--Before initiating negotiations
with regard to agriculture, and, with respect to the
Free Trade Area for the Americas and negotiations with
regard to agriculture under the auspices of the World
Trade Organization, as soon as practicable after the
enactment of this Act, the United States Trade
Representative shall--
(i) identify those agricultural products
subject to tariff-rate quotas on the date of
enactment of this Act, and agricultural
products subject to tariff reductions by the
United States as a result of the Uruguay Round
Agreements, for which the rate of duty was
reduced on January 1, 1995, to a rate which was
not less than 97.5 percent of the rate of duty
that applied to such article on December 31,
1994;
(ii) consult with the Committee on Ways and
Means and the Committee on Agriculture of the
House of Representatives and the Committee on
Finance and the Committee on Agriculture,
Nutrition, and Forestry of the Senate
concerning--
(I) whether any further tariff
reductions on the products identified
under clause (i) should be appropriate,
taking into account the impact of any
such tariff reduction on the United
States industry producing the product
concerned;
(II) whether the products so
identified face unjustified sanitary or
phytosanitary restrictions, including
those not based on scientific
principles in contravention of the
Uruguay Round Agreements; and
(III) whether the countries
participating in the negotiations
maintain export subsidies or other
programs, policies, or practices that
distort world trade in such products
and the impact of such programs,
policies, and practices on United
States producers of the products;
(iii) request that the International Trade
Commission prepare an assessment of the
probable economic effects of any such tariff
reduction on the United States industry
producing the product concerned and on the
United States economy as a whole; and
(iv) upon complying with clauses (i), (ii),
and (iii), notify the Committee on Ways and
Means and the Committee on Agriculture of the
House of Representatives and the Committee on
Finance and the Committee on Agriculture,
Nutrition, and Forestry of the Senate of those
products identified under clause (i) for which
the Trade Representative intends to seek tariff
liberalization in the negotiations and the
reasons for seeking such tariff liberalization.
(B) Identification of additional agricultural
products.--If, after negotiations described in
subparagraph (A) are commenced--
(i) the United States Trade Representative
identifies any additional agricultural product
described in subparagraph (A)(i) for tariff
reductions which were not the subject of a
notification under subparagraph (A)(iv), or
(ii) any additional agricultural product
described in subparagraph (A)(i) is the subject
of a request for tariff reductions by a party
to the negotiations,
the Trade Representative shall, as soon as practicable,
notify the committees referred to in subparagraph
(A)(iv) of those products and the reasons for seeking
such tariff reductions.
(3) Negotiations regarding the fishing industry.--Before
initiating, or continuing, negotiations which directly relate
to fish or shellfish trade with any country, the President
shall consult with the Committee on Ways and Means and the
Committee on Resources of the House of Representatives, and the
Committee on Finance and the Committee on Commerce, Science,
and Transportation of the Senate, and shall keep the Committees
apprised of negotiations on an ongoing and timely basis.
(c) Negotiations Regarding Textiles.--Before initiating or
continuing negotiations the subject matter of which is directly related
to textiles and apparel products with any country, the President shall
assess whether United States tariffs on textile and apparel products
that were bound under the Uruguay Round Agreements are lower than the
tariffs bound by that country and whether the negotiation provides an
opportunity to address any such disparity. The President shall consult
with the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate concerning the results of
the assessment, whether it is appropriate for the United States to
agree to further tariff reductions based on the conclusions reached in
the assessment, and how all applicable negotiating objectives will be
met.
(d) Consultation With Congress Before Agreements Entered Into.--
(1) Consultation.--Before entering into any trade agreement
under section 2103(b), the President shall consult with--
(A) the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate;
(B) each other committee of the House and the
Senate, and each joint committee of the Congress, which
has jurisdiction over legislation involving subject
matters which would be affected by the trade agreement;
and
(C) the Congressional Oversight Group convened
under section 2107.
(2) Scope.--The consultation described in paragraph (1)
shall include consultation with respect to--
(A) the nature of the agreement;
(B) how and to what extent the agreement will
achieve the applicable purposes, policies, priorities,
and objectives of this title; and
(C) the implementation of the agreement under
section 2105, including the general effect of the
agreement on existing laws.
(3) Report regarding united states trade remedy laws.--
(A) Changes in certain trade laws.--The President,
at least 90 calendar days before the day on which the
President enters into a trade agreement, shall notify
the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate in writing of any amendments to title VII of the
Tariff Act of 1930 or chapter 1 of title II of the
Trade Act of 1974 that the President proposes to
include in a bill implementing such trade agreement.
(B) Explanation.--On the date that the President
transmits the notification, the President also shall
transmit to the Committees a report explaining--
(i) the President's reasons for believing
that amendments to title VII of the Tariff Act
of 1930 or to chapter 1 of title II of the
Trade Act of 1974 are necessary to implement
the trade agreement; and
(ii) the President's reasons for believing
that such amendments are consistent with the
purposes, policies, and objectives described in
section 2102(c)(9).
(C) Report to house.--Not later than 60 calendar
days after the date on which the President transmits
the notification described in subparagraph (A), the
Chairman and ranking member of the Ways and Means
Committee of the House of Representatives, based on
consultations with the members of that Committee, shall
issue to the House of Representatives a report stating
whether the proposed amendments described in the
President's notification are consistent with the
purposes, policies, and objectives described in section
2102(c)(9). In the event that the Chairman and ranking
member disagree with respect to one or more
conclusions, the report shall contain the separate
views of the Chairman and ranking member.
(D) Report to senate.--Not later than 60 calendar
days after the date on which the President transmits
the notification described in subparagraph (A), the
Chairman and ranking member of the Finance Committee of
the Senate, based on consultations with the members of
that Committee, shall issue to the Senate a report
stating whether the proposed amendments described in
the President's report are consistent with the
purposes, policies, and objectives described in section
2102(c)(9). In the event that the Chairman and ranking
member disagree with respect to one or more
conclusions, the report shall contain the separate
views of the Chairman and ranking member.
(e) Advisory Committee Reports.--The report required under section
135(e)(1) of the Trade Act of 1974 regarding any trade agreement
entered into under section 2103 (a) or (b) of this title shall be
provided to the President, the Congress, and the United States Trade
Representative not later than 30 days after the date on which the
President notifies the Congress under section 2103(a)(1) or
2105(a)(1)(A) of the President's intention to enter into the agreement.
(f) ITC Assessment.--
(1) In general.--The President, at least 90 calendar days
before the day on which the President enters into a trade
agreement under section 2103(b), shall provide the
International Trade Commission (referred to in this subsection
as ``the Commission'') with the details of the agreement as it
exists at that time and request the Commission to prepare and
submit an assessment of the agreement as described in paragraph
(2). Between the time the President makes the request under
this paragraph and the time the Commission submits the
assessment, the President shall keep the Commission current
with respect to the details of the agreement.
(2) ITC assessment.--Not later than 90 calendar days after
the President enters into the agreement, the Commission shall
submit to the President and the Congress a report assessing the
likely impact of the agreement on the United States economy as
a whole and on specific industry sectors, including the impact
the agreement will have on the gross domestic product, exports
and imports, aggregate employment and employment opportunities,
the production, employment, and competitive position of
industries likely to be significantly affected by the
agreement, and the interests of United States consumers.
(3) Review of empirical literature.--In preparing the
assessment, the Commission shall review available economic
assessments regarding the agreement, including literature
regarding any substantially equivalent proposed agreement, and
shall provide in its assessment a description of the analyses
used and conclusions drawn in such literature, and a discussion
of areas of consensus and divergence between the various
analyses and conclusions, including those of the Commission
regarding the agreement.
SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.
(a) In General.--
(1) Notification and submission.--Any agreement entered
into under section 2103(b) shall enter into force with respect
to the United States if (and only if)--
(A) the President, at least 90 calendar days before
the day on which the President enters into an
agreement--
(i) notifies the House of Representatives
and the Senate of the President's intention to
enter into the agreement, and promptly
thereafter publishes notice of such intention
in the Federal Register; and
(ii) transmits to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate the
notification and report described in section
2104(d)(3) (A) and (B);
(B) within 60 days after entering into the
agreement, the President submits to the Congress a
description of those changes to existing laws that the
President considers would be required in order to bring
the United States into compliance with the agreement;
(C) after entering into the agreement, the
President submits to the Congress, on a day on which
both Houses of Congress are in session, a copy of the
final legal text of the agreement, together with--
(i) a draft of an implementing bill
described in section 2103(b)(3);
(ii) a statement of any administrative
action proposed to implement the trade
agreement; and
(iii) the supporting information described
in paragraph (2); and
(D) the implementing bill is enacted into law.
(2) Supporting information.--The supporting information
required under paragraph (1)(C)(iii) consists of--
(A) an explanation as to how the implementing bill
and proposed administrative action will change or
affect existing law; and
(B) a statement--
(i) asserting that the agreement makes
progress in achieving the applicable purposes,
policies, priorities, and objectives of this
title; and
(ii) setting forth the reasons of the
President regarding--
(I) how and to what extent the
agreement makes progress in achieving
the applicable purposes, policies, and
objectives referred to in clause (i);
(II) whether and how the agreement
changes provisions of an agreement
previously negotiated;
(III) how the agreement serves the
interests of United States commerce;
(IV) how the implementing bill
meets the standards set forth in
section 2103(b)(3);
(V) how and to what extent the
agreement makes progress in achieving
the applicable purposes, policies, and
objectives referred to in section
2102(c) regarding the promotion of
certain priorities; and
(VI) in the event that the reports
described in section 2104(b)(3) (C) and
(D) contain any findings that the
proposed amendments are inconsistent
with the purposes, policies, and
objectives described in section
2102(c)(9), an explanation as to why
the President believes such findings to
be incorrect.
(3) Reciprocal benefits.--In order to ensure that a foreign
country that is not a party to a trade agreement entered into
under section 2103(b) does not receive benefits under the
agreement unless the country is also subject to the obligations
under the agreement, the implementing bill submitted with
respect to the agreement shall provide that the benefits and
obligations under the agreement apply only to the parties to
the agreement, if such application is consistent with the terms
of the agreement. The implementing bill may also provide that
the benefits and obligations under the agreement do not apply
uniformly to all parties to the agreement, if such application
is consistent with the terms of the agreement.
(4) Disclosure of commitments.--Any agreement or other
understanding with a foreign government or governments (whether
oral or in writing) that--
(A) relates to a trade agreement with respect to
which Congress enacts implementing legislation under
trade authorities procedures, and
(B) is not disclosed to Congress before legislation
implementing that agreement is introduced in either
House of Congress,
shall not be considered to be part of the agreement approved by
Congress and shall have no force and effect under United States
law or in any dispute settlement body.
(b) Limitations on Trade Authorities Procedures.--
(1) For lack of notice or consultations.--
(A) In general.--The trade authorities procedures
shall not apply to any implementing bill submitted with
respect to a trade agreement or trade agreements
entered into under section 2103(b) if during the 60-day
period beginning on the date that one House of Congress
agrees to a procedural disapproval resolution for lack
of notice or consultations with respect to such trade
agreement or agreements, the other House separately
agrees to a procedural disapproval resolution with
respect to such trade agreement or agreements.
(B) Procedural disapproval resolution.--(i) For
purposes of this paragraph, the term ``procedural
disapproval resolution'' means a resolution of either
House of Congress, the sole matter after the resolving
clause of which is as follows: ``That the President has
failed or refused to notify or consult in accordance
with the Bipartisan Trade Promotion Authority Act of
2002 on negotiations with respect to ____________ and,
therefore, the trade authorities procedures under that
Act shall not apply to any implementing bill submitted
with respect to such trade agreement or agreements.'',
with the blank space being filled with a description of
the trade agreement or agreements with respect to which
the President is considered to have failed or refused
to notify or consult.
(ii) For purposes of clause (i), the President has
``failed or refused to notify or consult in accordance
with the Bipartisan Trade Promotion Authority Act of
2002'' on negotiations with respect to a trade
agreement or trade agreements if--
(I) the President has failed or refused to
consult (as the case may be) in accordance with
section 2104 or 2105 with respect to the
negotiations, agreement, or agreements;
(II) guidelines under section 2107(b) have
not been developed or met with respect to the
negotiations, agreement, or agreements;
(III) the President has not met with the
Congressional Oversight Group pursuant to a
request made under section 2107(c) with respect
to the negotiations, agreement, or agreements;
or
(IV) the agreement or agreements fail to
make progress in achieving the purposes,
policies, priorities, and objectives of this
title.
(C) Procedures for considering resolutions.--(i)
Procedural disapproval resolutions--
(I) in the House of Representatives--
(aa) may be introduced by any
Member of the House;
(bb) shall be referred to the
Committee on Ways and Means and, in
addition, to the Committee on Rules;
and
(cc) may not be amended by either
Committee; and
(II) in the Senate--
(aa) may be introduced by any
Member of the Senate.
(bb) shall be referred to the
Committee on Finance; and
(cc) may not be amended.
(ii) The provisions of section 152 (d) and (e) of
the Trade Act of 1974 (19 U.S.C. 2192 (d) and (e))
(relating to the floor consideration of certain
resolutions in the House and Senate) apply to a
procedural disapproval resolution introduced with
respect to a trade agreement if no other procedural
disapproval resolution with respect to that trade
agreement has previously been considered under such
provisions of section 152 of the Trade Act of 1974 in
that House of Congress during that Congress.
(iii) It is not in order for the House of
Representatives to consider any procedural disapproval
resolution not reported by the Committee on Ways and
Means and, in addition, by the Committee on Rules.
(iv) It is not in order for the Senate to consider
any procedural disapproval resolution not reported by
the Committee on Finance.
(2) For failure to meet other requirements.--Prior to
December 31, 2002, the Secretary of Commerce shall transmit to
Congress a report setting forth the strategy of the United
States for correcting instances in which dispute settlement
panels and the Appellate Body of the WTO have added to
obligations or diminished rights of the United States, as
described in section 2101(b)(3). Trade authorities procedures
shall not apply to any implementing bill with respect to an
agreement negotiated under the auspices of the WTO, unless the
Secretary of Commerce has issued such report in a timely
manner.
(c) Rules of House of Representatives and Senate.--Subsection (b)
of this section and section 2103(c) are enacted by the Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such are
deemed a part of the rules of each House, respectively, and
such procedures supersede other rules only to the extent that
they are inconsistent with such other rules; and
(2) with the full recognition of the constitutional right
of either House to change the rules (so far as relating to the
procedures of that House) at any time, in the same manner, and
to the same extent as any other rule of that House.
SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH NEGOTIATIONS
HAVE ALREADY BEGUN.
(a) Certain Agreements.--Notwithstanding the prenegotiation
notification and consultation requirement described in section 2104(a),
if an agreement to which section 2103(b) applies--
(1) is entered into under the auspices of the World Trade
Organization,
(2) is entered into with Chile,
(3) is entered into with Singapore, or
(4) establishes a Free Trade Area for the Americas,
and results from negotiations that were commenced before the date of
the enactment of this Act, subsection (b) shall apply.
(b) Treatment of Agreements.--In the case of any agreement to which
subsection (a) applies--
(1) the applicability of the trade authorities procedures
to implementing bills shall be determined without regard to the
requirements of section 2104(a) (relating only to 90 days
notice prior to initiating negotiations), and any procedural
disapproval resolution under section 2105(b)(1)(B) shall not be
in order on the basis of a failure or refusal to comply with
the provisions of section 2104(a); and
(2) the President shall, as soon as feasible after the
enactment of this Act--
(A) notify the Congress of the negotiations
described in subsection (a), the specific United States
objectives in the negotiations, and whether the
President is seeking a new agreement or changes to an
existing agreement; and
(B) before and after submission of the notice,
consult regarding the negotiations with the committees
referred to in section 2104(a)(2) and the Congressional
Oversight Group.
SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.
(a) Members and Functions.--
(1) In general.--By not later than 60 days after the date
of the enactment of this Act, and not later than 30 days after
the convening of each Congress, the chairman of the Committee
on Ways and Means of the House of Representatives and the
chairman of the Committee on Finance of the Senate shall
convene the Congressional Oversight Group.
(2) Membership from the house.--In each Congress, the
Congressional Oversight Group shall be comprised of the
following Members of the House of Representatives:
(A) The chairman and ranking member of the
Committee on Ways and Means, and 3 additional members
of such Committee (not more than 2 of whom are members
of the same political party).
(B) The chairman and ranking member, or their
designees, of the committees of the House of
Representatives which would have, under the Rules of
the House of Representatives, jurisdiction over
provisions of law affected by a trade agreement
negotiations for which are conducted at any time during
that Congress and to which this title would apply.
(3) Membership from the senate.--In each Congress, the
Congressional Oversight Group shall also be comprised of the
following members of the Senate:
(A) The chairman and ranking Member of the
Committee on Finance and 3 additional members of such
Committee (not more than 2 of whom are members of the
same political party).
(B) The chairman and ranking member, or their
designees, of the committees of the Senate which would
have, under the Rules of the Senate, jurisdiction over
provisions of law affected by a trade agreement
negotiations for which are conducted at any time during
that Congress and to which this title would apply.
(4) Accreditation.--Each member of the Congressional
Oversight Group described in paragraph (2)(A) and (3)(A) shall
be accredited by the United States Trade Representative on
behalf of the President as official advisers to the United
States delegation in negotiations for any trade agreement to
which this title applies. Each member of the Congressional
Oversight Group described in paragraph (2)(B) and (3)(B) shall
be accredited by the United States Trade Representative on
behalf of the President as official advisers to the United
States delegation in the negotiations by reason of which the
member is in the Congressional Oversight Group. The
Congressional Oversight Group shall consult with and provide
advice to the Trade Representative regarding the formulation of
specific objectives, negotiating strategies and positions, the
development of the applicable trade agreement, and compliance
and enforcement of the negotiated commitments under the trade
agreement.
(5) Chair.--The Congressional Oversight Group shall be
chaired by the Chairman of the Committee on Ways and Means of
the House of Representatives and the Chairman of the Committee
on Finance of the Senate.
(b) Guidelines.--
(1) Purpose and revision.--The United States Trade
Representative, in consultation with the chairmen and ranking
minority members of the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate--
(A) shall, within 120 days after the date of the
enactment of this Act, develop written guidelines to
facilitate the useful and timely exchange of
information between the Trade Representative and the
Congressional Oversight Group established under this
section; and
(B) may make such revisions to the guidelines as
may be necessary from time to time.
(2) Content.--The guidelines developed under paragraph (1)
shall provide for, among other things--
(A) regular, detailed briefings of the
Congressional Oversight Group regarding negotiating
objectives, including the promotion of certain
priorities referred to in section 2102(c), and
positions and the status of the applicable
negotiations, beginning as soon as practicable after
the Congressional Oversight Group is convened, with
more frequent briefings as trade negotiations enter the
final stage;
(B) access by members of the Congressional
Oversight Group, and staff with proper security
clearances, to pertinent documents relating to the
negotiations, including classified materials;
(C) the closest practicable coordination between
the Trade Representative and the Congressional
Oversight Group at all critical periods during the
negotiations, including at negotiation sites;
(D) after the applicable trade agreement is
concluded, consultation regarding ongoing compliance
and enforcement of negotiated commitments under the
trade agreement; and
(E) the time frame for submitting the report
required under section 2102(c)(8).
(c) Request for Meeting.--Upon the request of a majority of the
Congressional Oversight Group, the President shall meet with the
Congressional Oversight Group before initiating negotiations with
respect to a trade agreement, or at any other time concerning the
negotiations.
SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT REQUIREMENTS.
(a) In General.--At the time the President submits to the Congress
the final text of an agreement pursuant to section 2105(a)(1)(C), the
President shall also submit a plan for implementing and enforcing the
agreement. The implementation and enforcement plan shall include the
following:
(1) Border personnel requirements.--A description of
additional personnel required at border entry points, including
a list of additional customs and agricultural inspectors.
(2) Agency staffing requirements.--A description of
additional personnel required by Federal agencies responsible
for monitoring and implementing the trade agreement, including
personnel required by the Office of the United States Trade
Representative, the Department of Commerce, the Department of
Agriculture (including additional personnel required to
implement sanitary and phytosanitary measures in order to
obtain market access for United States exports), the Department
of the Treasury, and such other agencies as may be necessary.
(3) Customs infrastructure requirements.--A description of
the additional equipment and facilities needed by the United
States Customs Service.
(4) Impact on state and local governments.--A description
of the impact the trade agreement will have on State and local
governments as a result of increases in trade.
(5) Cost analysis.--An analysis of the costs associated
with each of the items listed in paragraphs (1) through (4).
(b) Budget Submission.--The President shall include a request for
the resources necessary to support the plan described in subsection (a)
in the first budget that the President submits to the Congress after
the submission of the plan.
SEC. 2109. COMMITTEE STAFF.
The grant of trade promotion authority under this title is likely
to increase the activities of the primary committees of jurisdiction in
the area of international trade. In addition, the creation of the
Congressional Oversight Group under section 2107 will increase the
participation of a broader number of Members of Congress in the
formulation of United States trade policy and oversight of the
international trade agenda for the United States. The primary
committees of jurisdiction should have adequate staff to accommodate
these increases in activities.
SEC. 2110. CONFORMING AMENDMENTS.
(a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111
et seq.) is amended as follows:
(1) Implementing bill.--
(A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is
amended by striking ``section 1103(a)(1) of the Omnibus
Trade and Competitiveness Act of 1988, or section 282
of the Uruguay Round Agreements Act'' and inserting
``section 282 of the Uruguay Round Agreements Act, or
section 2105(a)(1) of the Bipartisan Trade Promotion
Authority Act of 2002''.
(B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is
amended by striking ``or section 282 of the Uruguay
Round Agreements Act'' and inserting ``, section 282 of
the Uruguay Round Agreements Act, or section 2105(a)(1)
of the Bipartisan Trade Promotion Authority Act of
2002''.
(2) Advice from international trade commission.--Section
131 (19 U.S.C. 2151) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``section
123 of this Act or section 1102 (a) or (c) of
the Omnibus Trade and Competitiveness Act of
1988,'' and inserting ``section 123 of this Act
or section 2103 (a) or (b) of the Bipartisan
Trade Promotion Authority Act of 2002,''; and
(ii) in paragraph (2), by striking
``section 1102 (b) or (c) of the Omnibus Trade
and Competitiveness Act of 1988'' and inserting
``section 2103(b) of the Bipartisan Trade
Promotion Authority Act of 2002'';
(B) in subsection (b), by striking ``section
1102(a)(3)(A)'' and inserting ``section 2103(a)(3)(A)
of the Bipartisan Trade Promotion Authority Act of
2002''; and
(C) in subsection (c), by striking ``section 1102
of the Omnibus Trade and Competitiveness Act of 1988,''
and inserting ``section 2103 of the Bipartisan Trade
Promotion Authority Act of 2002,''.
(3) Hearings and advice.--Sections 132, 133(a), and 134(a)
(19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by
striking ``section 1102 of the Omnibus Trade and
Competitiveness Act of 1988,'' each place it appears and
inserting ``section 2103 of the Bipartisan Trade Promotion
Authority Act of 2002,''.
(4) Prerequisites for offers.--Section 134(b) (19 U.S.C.
2154(b)) is amended by striking ``section 1102 of the Omnibus
Trade and Competitiveness Act of 1988'' and inserting ``section
2103 of the Bipartisan Trade Promotion Authority Act of 2002''.
(5) Advice from private and public sectors.--Section 135
(19 U.S.C. 2155) is amended--
(A) in subsection (a)(1)(A), by striking ``section
1102 of the Omnibus Trade and Competitiveness Act of
1988'' and inserting ``section 2103 of the Bipartisan
Trade Promotion Authority Act of 2002'';
(B) in subsection (e)(1)--
(i) by striking ``section 1102 of the
Omnibus Trade and Competitiveness Act of 1988''
each place it appears and inserting ``section
2103 of the Bipartisan Trade Promotion
Authority Act of 2002''; and
(ii) by striking ``not later than the date
on which the President notifies the Congress
under section 1103(a)(1)(A) of such Act of 1988
of his intention to enter into that agreement''
and inserting ``not later than the date that is
30 days after the date on which the President
notifies the Congress under section 5(a)(1)(A)
of the Bipartisan Trade Promotion Authority Act
of 2002 of the President's intention to enter
into that agreement''; and
(C) in subsection (e)(2), by striking ``section
1101 of the Omnibus Trade and Competitiveness Act of
1988'' and inserting ``section 2102 of the Bipartisan
Trade Promotion Authority Act of 2002''.
(6) Transmission of agreements to congress.--Section 162(a)
(19 U.S.C. 2212(a)) is amended by striking ``or under section
1102 of the Omnibus Trade and Competitiveness Act of 1988'' and
inserting ``or under section 2103 of the Bipartisan Trade
Promotion Authority Act of 2002''.
(b) Application of Certain Provisions.--For purposes of applying
sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135,
2136(a), and 2137)--
(1) any trade agreement entered into under section 2103
shall be treated as an agreement entered into under section 101
or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C.
2111 or 2112); and
(2) any proclamation or Executive order issued pursuant to
a trade agreement entered into under section 2103 shall be
treated as a proclamation or Executive order issued pursuant to
a trade agreement entered into under section 102 of the Trade
Act of 1974.
SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the International Trade Commission shall report to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives regarding the economic impact on the
United States of the trade agreements described in subsection (b).
(b) Agreements.--The trade agreements described in this subsection
are:
(1) The United States-Israel Free Trade Agreement.
(2) The United States-Canada Free Trade Agreement.
(3) The North American Free Trade Agreement.
(4) The Uruguay Round Agreements.
(5) The Tokyo Round of Multilateral Trade Negotiations.
SEC. 2112. IDENTIFICATION OF SMALL BUSINESS ADVOCATE AT WTO.
(a) In General.--The United States Trade Representative shall
pursue the identification of a small business advocate at the World
Trade Organization Secretariat to examine the impact of WTO agreements
on the interests of small- and medium-sized enterprises, address the
concerns of small- and medium-sized enterprises, and recommend ways to
address those interests in trade negotiations involving the World Trade
Organization.
(b) Assistant Trade Representative.--The Assistant United States
Trade Representative for Industry and Telecommunications shall be
responsible for ensuring that the interests of small business are
considered in all trade negotiations in accordance with the objective
described in section 2102(a)(8). It is the sense of Congress that the
small business functions should be reflected in the title of the
Assistant United States Trade Representative assigned the
responsibility for small business.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, and annually thereafter, the United States Trade
Representative shall prepare and submit a report to the Committee on
Finance of the Senate and the Committee on Ways and Means of the House
of Representatives on the steps taken by the United States Trade
Representative to pursue the identification of a small business
advocate at the World Trade Organization.
SEC. 2113. DEFINITIONS.
In this title:
(1) Agreement on agriculture.--The term ``Agreement on
Agriculture'' means the agreement referred to in section
101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(2)).
(2) Core labor standards.--The term ``core labor
standards'' means--
(A) the right of association;
(B) the right to organize and bargain collectively;
(C) a prohibition on the use of any form of forced
or compulsory labor;
(D) a minimum age for the employment of children;
and
(E) acceptable conditions of work with respect to
minimum wages, hours of work, and occupational safety
and health.
(3) GATT 1994.--The term ``GATT 1994'' has the meaning
given that term in section 2 of the Uruguay Round Agreements
Act (19 U.S.C. 3501).
(4) ILO.--The term ``ILO'' means the International Labor
Organization.
(5) Import sensitive agricultural product.--The term
``import sensitive agricultural product'' means an agricultural
product with respect to which, as a result of the Uruguay Round
Agreements--
(A) the rate of duty was the subject of tariff
reductions by the United States, and pursuant to such
Agreements, was reduced on January 1, 1995, to a rate
which was not less than 97.5 percent of the rate of
duty that applied to such article on December 31, 1994;
or
(B) became subject to a tariff-rate quota on or
after January 1, 1995.
(6) United states person.--The term ``United States
person'' means--
(A) a United States citizen;
(B) a partnership, corporation, or other legal
entity organized under the laws of the United States;
and
(C) a partnership, corporation, or other legal
entity that is organized under the laws of a foreign
country and is controlled by entities described in
subparagraph (B) or United States citizens, or both.
(7) Uruguay round agreements.--The term ``Uruguay Round
Agreements'' has the meaning given that term in section 2(7) of
the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
(8) World trade organization; wto.--The terms ``World Trade
Organization'' and ``WTO'' mean the organization established
pursuant to the WTO Agreement.
(9) WTO agreement.--The term ``WTO Agreement'' means the
Agreement Establishing the World Trade Organization entered
into on April 15, 1994.
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN TRADE PREFERENCE
SEC. 3101. SHORT TITLE; FINDINGS.
(a) Short Title.--This title may be cited as the ``Andean Trade
Preference Expansion Act''.
(b) Findings.--Congress makes the following findings:
(1) Since the Andean Trade Preference Act was enacted in
1991, it has had a positive impact on United States trade with
Bolivia, Colombia, Ecuador, and Peru. Two-way trade has
doubled, with the United States serving as the leading source
of imports and leading export market for each of the Andean
beneficiary countries. This has resulted in increased jobs and
expanded export opportunities in both the United States and the
Andean region.
(2) The Andean Trade Preference Act has been a key element
in the United States counternarcotics strategy in the Andean
region, promoting export diversification and broad-based
economic development that provides sustainable economic
alternatives to drug-crop production, strengthening the
legitimate economies of Andean countries and creating viable
alternatives to illicit trade in coca.
(3) Notwithstanding the success of the Andean Trade
Preference Act, the Andean region remains threatened by
political and economic instability and fragility, vulnerable to
the consequences of the drug war and fierce global competition
for its legitimate trade.
(4) The continuing instability in the Andean region poses a
threat to the security interests of the United States and the
world. This problem has been partially addressed through
foreign aid, such as Plan Colombia, enacted by Congress in
2000. However, foreign aid alone is not sufficient. Enhancement
of legitimate trade with the United States provides an
alternative means for reviving and stabilizing the economies in
the Andean region.
(5) The Andean Trade Preference Act constitutes a tangible
commitment by the United States to the promotion of prosperity,
stability, and democracy in the beneficiary countries.
(6) Renewal and enhancement of the Andean Trade Preference
Act will bolster the confidence of domestic private enterprise
and foreign investors in the economic prospects of the region,
ensuring that legitimate private enterprise can be the engine
of economic development and political stability in the region.
(7) Each of the Andean beneficiary countries is committed
to conclude negotiation of a Free Trade Area of the Americas by
the year 2005, as a means of enhancing the economic security of
the region.
(8) Temporarily enhancing trade benefits for Andean
beneficiaries countries will promote the growth of free
enterprise and economic opportunity in these countries and
serve the security interests of the United States, the region,
and the world.
SEC. 3102. TEMPORARY PROVISIONS.
(a) In General.--Section 204(b) of the Andean Trade Preference Act
(19 U.S.C. 3203(b)) is amended to read as follows:
``(b) Import-Sensitive Articles.--
``(1) In general.--Subject to paragraphs (2) through (5),
the duty-free treatment provided under this title does not
apply to--
``(A) textile and apparel articles which were not
eligible articles for purposes of this title on January
1, 1994, as this title was in effect on that date;
``(B) footwear not designated at the time of the
effective date of this title as eligible articles for
the purpose of the generalized system of preferences
under title V of the Trade Act of 1974;
``(C) tuna, prepared or preserved in any manner, in
airtight containers;
``(D) petroleum, or any product derived from
petroleum, provided for in headings 2709 and 2710 of
the HTS;
``(E) watches and watch parts (including cases,
bracelets, and straps), of whatever type including, but
not limited to, mechanical, quartz digital, or quartz
analog, if such watches or watch parts contain any
material which is the product of any country with
respect to which HTS column 2 rates of duty apply;
``(F) articles to which reduced rates of duty apply
under subsection (c);
``(G) sugars, syrups, and sugar containing products
subject to tariff-rate quotas; or
``(H) rum and tafia classified in subheading
2208.40 of the HTS.
``(2) Transition period treatment of certain textile and
apparel articles.--
``(A) Articles covered.--During the transition
period, the preferential treatment described in
subparagraph (B) shall apply to the following articles
imported directly into the customs territory of the
United States from an ATPEA beneficiary country:
``(i) Apparel articles assembled from
products of the united states and atpea
beneficiary countries or products not available
in commercial quantities.--Apparel articles
sewn or otherwise assembled in 1 or more ATPEA
beneficiary countries, or the United States, or
both, exclusively from any one or any
combination of the following:
``(I) Fabrics or fabric components
formed, or components knit-to-shape, in
the United States, from yarns wholly
formed in the United States (including
fabrics not formed from yarns, if such
fabrics are classifiable under heading
5602 or 5603 of the HTS and are formed
in the United States), provided that
apparel articles sewn or otherwise
assembled from materials described in
this subclause are assembled with
thread formed in the United States.
``(II) Fabric components knit-to-
shape in the United States from yarns
wholly formed in the United States and
fabric components knit-to-shape in 1 or
more ATPEA beneficiary countries from
yarns wholly formed in the United
States.
``(III) Fabrics or fabric
components formed or components knit-
to-shape, in 1 or more ATPEA
beneficiary countries, from yarns
wholly formed in 1 or more ATPEA
beneficiary countries, if such fabrics
(including fabrics not formed from
yarns, if such fabrics are classifiable
under heading 5602 or 5603 of the HTS
and are formed in 1 or more ATPEA
beneficiary countries) or components
are in chief weight of llama, or
alpaca.
``(IV) Fabrics or yarns that are
not formed in the United States or in 1
or more ATPEA beneficiary countries, to
the extent such fabrics or yarns are
considered not to be widely available
in commercial quantities for purposes
of determining the eligibility of such
apparel articles for preferential
treatment under Annex 401 of the NAFTA.
``(ii) Knit-to-shape apparel articles.--
Apparel articles knit-to-shape (other than
socks provided for in heading 6115 of the HTS)
in 1 or more ATPEA beneficiary countries from
yarns wholly formed in the United States.
``(iii) Regional fabric.--
``(I) General rule.--Knit apparel
articles wholly assembled in 1 or more
ATPEA beneficiary countries exclusively
from fabric formed, or fabric
components formed, or components knit-
to-shape, or any combination thereof,
in 1 or more ATPEA beneficiary
countries from yarns wholly formed in
the United States, in an amount not
exceeding the amount set forth in
subclause (II).
``(II) Limitation.--The amount
referred to in subclause (I) is
70,000,000 square meter equivalents
during the 1-year period beginning on
March 1, 2002, increased by 16 percent,
compounded annually, in each succeeding
1-year period through February 28,
2006.
``(iv) Certain other apparel articles.--
``(I) General rule.--Subject to
subclause (II), any apparel article
classifiable under subheading 6212.10
of the HTS, if the article is both cut
and sewn or otherwise assembled in the
United States, or one or more of the
ATPEA beneficiary countries, or both.
``(II) Limitation.--During the 1-
year period beginning on March 1, 2003,
and during each of the 2 succeeding 1-
year periods, apparel articles
described in subclause (I) of a
producer or an entity controlling
production shall be eligible for
preferential treatment under
subparagraph (B) only if the aggregate
cost of fabric components formed in the
United States that are used in the
production of all such articles of that
producer or entity that are entered
during the preceding 1-year period is
at least 75 percent of the aggregate
declared customs value of the fabric
contained in all such articles of that
producer or entity that are entered
during the preceding 1-year period.
``(III) Development of procedure to
ensure compliance.--The United States
Customs Service shall develop and
implement methods and procedures to
ensure ongoing compliance with the
requirement set forth in subclause
(II). If the Customs Service finds that
a producer or an entity controlling
production has not satisfied such
requirement in a 1-year period, then
apparel articles described in subclause
(I) of that producer or entity shall be
ineligible for preferential treatment
under subparagraph (B) during any
succeeding 1-year period until the
aggregate cost of fabric components
formed in the United States used in the
production of such articles of that
producer or entity that are entered
during the preceding 1-year period is
at least 85 percent of the aggregate
declared customs value of the fabric
contained in all such articles of that
producer or entity that are entered
during the preceding 1-year period.
``(v) Apparel articles assembled from
fabrics or yarn not widely available in
commercial quantities.--At the request of any
interested party, the President is authorized
to proclaim additional fabrics and yarn as
eligible for preferential treatment under
clause (i)(IV) if--
``(I) the President determines that
such fabrics or yarn cannot be supplied
by the domestic industry in commercial
quantities in a timely manner;
``(II) the President has obtained
advice regarding the proposed action
from the appropriate advisory committee
established under section 135 of the
Trade Act of 1974 (19 U.S.C. 2155) and
the United States International Trade
Commission;
``(III) within 60 days after the
request, the President has submitted a
report to the Committee on Ways and
Means of the House of Representatives
and the Committee on Finance of the
Senate that sets forth the action
proposed to be proclaimed and the
reasons for such actions, and the
advice obtained under subclause (II);
``(IV) a period of 60 calendar
days, beginning with the first day on
which the President has met the
requirements of subclause (III), has
expired; and
``(V) the President has consulted
with such committees regarding the
proposed action during the period
referred to in subclause (III).
``(vi) Handloomed, handmade, and folklore
articles.--A handloomed, handmade, or folklore
article of an ATPEA beneficiary country
identified under subparagraph (C) that is
certified as such by the competent authority of
such beneficiary country.
``(vii) Special rules.--
``(I) Exception for findings and
trimmings.--(aa) An article otherwise
eligible for preferential treatment
under this paragraph shall not be
ineligible for such treatment because
the article contains findings or
trimmings of foreign origin, if such
findings and trimmings do not exceed 25
percent of the cost of the components
of the assembled product. Examples of
findings and trimmings are sewing
thread, hooks and eyes, snaps, buttons,
`bow buds', decorative lace, trim,
elastic strips, zippers, including
zipper tapes and labels, and other
similar products. Elastic strips are
considered findings or trimmings only
if they are each less than 1 inch in
width and are used in the production of
brassieres.
``(bb) In the case of an article
described in clause (i)(I) of this
subparagraph, sewing thread shall not
be treated as findings or trimmings
under this subclause.
``(II) Certain interlinings.--(aa)
An article otherwise eligible for
preferential treatment under this
paragraph shall not be ineligible for
such treatment because the article
contains certain interlinings of
foreign origin, if the value of such
interlinings (and any findings and
trimmings) does not exceed 25 percent
of the cost of the components of the
assembled article.
``(bb) Interlinings eligible for
the treatment described in division
(aa) include only a chest type plate,
`hymo' piece, or `sleeve header', of
woven or weft-inserted warp knit
construction and of coarse animal hair
or man-made filaments.
``(cc) The treatment described in
this subclause shall terminate if the
President makes a determination that
United States manufacturers are
producing such interlinings in the
United States in commercial quantities.
``(III) De minimis rule.--An
article that would otherwise be
ineligible for preferential treatment
under this paragraph because the
article contains yarns not wholly
formed in the United States or in 1 or
more ATPEA beneficiary countries shall
not be ineligible for such treatment if
the total weight of all such yarns is
not more than 7 percent of the total
weight of the good. Notwithstanding the
preceding sentence, an apparel article
containing elastomeric yarns shall be
eligible for preferential treatment
under this paragraph only if such yarns
are wholly formed in the United States.
``(IV) Special origin rule.--An
article otherwise eligible for
preferential treatment under clause (i)
of this subparagraph shall not be
ineligible for such treatment because
the article contains nylon filament
yarn (other than elastomeric yarn) that
is classifiable under subheading
5402.10.30, 5402.10.60, 5402.31.30,
5402.31.60, 5402.32.30, 5402.32.60,
5402.41.10, 5402.41.90, 5402.51.00, or
5402.61.00 of the HTS duty-free from a
country that is a party to an agreement
with the United States establishing a
free trade area, which entered into
force before January 1, 1995.
``(V) Clarification of certain knit
apparel articles.--Notwithstanding any
other provision of law, an article
otherwise eligible for preferential
treatment under clause (iii)(I) of this
subparagraph, shall not be ineligible
for such treatment because the article,
or a component thereof, contains fabric
formed in the United States from yarns
wholly formed in the United States.
``(viii) Textile luggage.--Textile
luggage--
``(I) assembled in an ATPEA
beneficiary country from fabric wholly
formed and cut in the United States,
from yarns wholly formed in the United
States, that is entered under
subheading 9802.00.80 of the HTS; or
``(II) assembled from fabric cut in
an ATPEA beneficiary country from
fabric wholly formed in the United
States from yarns wholly formed in the
United States.
``(B) Preferential treatment.--Except as provided
in subparagraph (E), during the transition period, the
articles to which subparagraph (A) applies shall enter
the United States free of duty and free of any
quantitative restrictions, limitations, or consultation
levels.
``(C) Handloomed, handmade, and folklore
articles.--For purposes of subparagraph (A)(vi), the
President shall consult with representatives of the
ATPEA beneficiary countries concerned for the purpose
of identifying particular textile and apparel goods
that are mutually agreed upon as being handloomed,
handmade, or folklore goods of a kind described in
section 2.3(a), (b), or (c) of the Annex or Appendix
3.1.B.11 of the Annex.
``(D) Penalties for transshipments.--
``(i) Penalties for exporters.--If the
President determines, based on sufficient
evidence, that an exporter has engaged in
transshipment with respect to textile or
apparel articles from an ATPEA beneficiary
country, then the President shall deny all
benefits under this title to such exporter, and
any successor of such exporter, for a period of
2 years.
``(ii) Penalties for countries.--Whenever
the President finds, based on sufficient
evidence, that transshipment has occurred, the
President shall request that the ATPEA
beneficiary country or countries through whose
territory the transshipment has occurred take
all necessary and appropriate actions to
prevent such transshipment. If the President
determines that a country is not taking such
actions, the President shall reduce the
quantities of textile and apparel articles that
may be imported into the United States from
such country by the quantity of the
transshipped articles multiplied by 3, to the
extent consistent with the obligations of the
United States under the WTO.
``(iii) Transshipment described.--
Transshipment within the meaning of this
subparagraph has occurred when preferential
treatment under subparagraph (B) has been
claimed for a textile or apparel article on the
basis of material false information concerning
the country of origin, manufacture, processing,
or assembly of the article or any of its
components. For purposes of this clause, false
information is material if disclosure of the
true information would mean or would have meant
that the article is or was ineligible for
preferential treatment under subparagraph (B).
``(E) Bilateral emergency actions.--
``(i) In general.--The President may take
bilateral emergency tariff actions of a kind
described in section 4 of the Annex with
respect to any apparel article imported from an
ATPEA beneficiary country if the application of
tariff treatment under subparagraph (B) to such
article results in conditions that would be
cause for the taking of such actions under such
section 4 with respect to a like article
described in the same 8-digit subheading of the
HTS that is imported from Mexico.
``(ii) Rules relating to bilateral
emergency action.--For purposes of applying
bilateral emergency action under this
subparagraph--
``(I) the requirements of paragraph
(5) of section 4 of the Annex (relating
to providing compensation) shall not
apply;
``(II) the term `transition period'
in section 4 of the Annex shall have
the meaning given that term in
paragraph (5)(D) of this subsection;
and
``(III) the requirements to consult
specified in section 4 of the Annex
shall be treated as satisfied if the
President requests consultations with
the ATPEA beneficiary country in
question and the country does not agree
to consult within the time period
specified under section 4.
``(3) Transition period treatment of certain other articles
originating in beneficiary countries.--
``(A) Equivalent tariff treatment.--
``(i) In general.--Subject to clauses (ii)
and (iii), the tariff treatment accorded at any
time during the transition period to any
article referred to in any of subparagraphs
(B), (D) through (F), or (H) of paragraph (1)
that is an ATPEA originating good, imported
directly into the customs territory of the
United States from an ATPEA beneficiary
country, shall be identical to the tariff
treatment that is accorded at such time under
Annex 302.2 of the NAFTA to an article
described in the same 8-digit subheading of the
HTS that is a good of Mexico and is imported
into the United States.
``(ii) Exception.--Clause (i) does not
apply to any article accorded duty-free
treatment under U.S. Note 2(b) to subchapter II
of chapter 98 of the HTS.
``(iii) Certain Footwear.--
``(I) In general.--Duties on any
article described in subclause (II),
that is an ATPEA originating good
imported directly into the customs
territory of the United States from an
ATPEA beneficiary country, shall be
reduced by 1/15 a year beginning on the
date of enactment of the Andean Trade
Preference Expansion Act.
``(II) Articles described.--An
article described in this subclause
means an article described in
subheading 6401.10.00, 6401.91.00,
6401.92.90, 6401.99.30, 6401.99.60,
6401.99.90, 6402.30.50, 6402.30.70,
6402.30.80, 6402.91.50, 6402.91.80,
6402.91.90, 6402.99.20, 6402.99.30,
6402.99.80, 6402.99.90, 6403.91.60,
6404.11.50, 6404.11.60, 6404.11.70,
6404.11.80, 6404.11.90, 6404.19.20,
6404.19.35, 6404.19.50, or 6404.19.70
of the HTS.
``(B) Relationship to subsection (c) duty
reductions.--If at any time during the transition
period the rate of duty that would (but for action
taken under subparagraph (A)(i) in regard to such
period) apply with respect to any article under
subsection (c) is a rate of duty that is lower than the
rate of duty resulting from such action, then such
lower rate of duty shall be applied for the purposes of
implementing such action.
``(C) Special rule for sugars, syrups, and sugar
containing products.--Duty-free treatment under this
Act shall not be extended to sugars, syrups, and sugar-
containing products subject to over-quota duty rates
under applicable tariff-rate quotas.
``(D) Special rule for certain tuna products.--
``(i) In general.--The President may
proclaim duty-free treatment under this Act for
tuna that is harvested by United States vessels
or ATPEA beneficiary country vessels, and is
prepared or preserved in any manner, in
airtight containers in an ATPEA beneficiary
country. Such duty-free treatment may be
proclaimed in any calendar year for a quantity
of such tuna that does not exceed 20 percent of
the domestic United States tuna pack in the
preceding calendar year. As used in the
preceding sentence, the term `tuna pack' means
tuna pack as defined by the National Marine
Fisheries Service of the United States
Department of Commerce for purposes of
subheading 1604.14.20 of the HTS as in effect
on the date of enactment of the Andean Trade
Preference Expansion Act.
``(ii) United states vessel.--For purposes
of this subparagraph, a `United States vessel'
is a vessel having a certificate of
documentation with a fishery endorsement under
chapter 121 of title 46, United States Code.
``(iii) ATPEA vessel.--For purposes of this
subparagraph, an `ATPEA vessel' is a vessel--
``(I) which is registered or
recorded in an ATPEA beneficiary
country;
``(II) which sails under the flag
of an ATPEA beneficiary country;
``(III) which is at least 75
percent owned by nationals of an ATPEA
beneficiary country or by a company
having its principal place of business
in an ATPEA beneficiary country, of
which the manager or managers, chairman
of the board of directors or of the
supervisory board, and the majority of
the members of such boards are
nationals of an ATPEA beneficiary
country and of which, in the case of a
company, at least 50 percent of the
capital is owned by an ATPEA
beneficiary country or by public bodies
or nationals of an ATPEA beneficiary
country;
``(IV) of which the master and
officers are nationals of an ATPEA
beneficiary country; and
``(V) of which at least 75 percent
of the crew are nationals of an ATPEA
beneficiary country.
``(4) Customs procedures.--
``(A) In general.--
``(i) Regulations.--Any importer that
claims preferential treatment under paragraph
(2) or (3) shall comply with customs procedures
similar in all material respects to the
requirements of Article 502(1) of the NAFTA as
implemented pursuant to United States law, in
accordance with regulations promulgated by the
Secretary of the Treasury.
``(ii) Determination.--
``(I) In general.--In order to
qualify for the preferential treatment
under paragraph (2) or (3) and for a
Certificate of Origin to be valid with
respect to any article for which such
treatment is claimed, there shall be in
effect a determination by the President
that each country described in
subclause (II)--
``(aa) has implemented and
follows; or
``(bb) is making
substantial progress toward
implementing and following,
procedures and requirements
similar in all material
respects to the relevant
procedures and requirements
under chapter 5 of the NAFTA.
``(II) Country described.--A
country is described in this subclause
if it is an ATPEA beneficiary country--
``(aa) from which the
article is exported; or
``(bb) in which materials
used in the production of the
article originate or in which
the article or such materials
undergo production that
contributes to a claim that the
article is eligible for
preferential treatment under
paragraph (2) or (3).
``(B) Certificate of origin.--The Certificate of
Origin that otherwise would be required pursuant to the
provisions of subparagraph (A) shall not be required in
the case of an article imported under paragraph (2) or
(3) if such Certificate of Origin would not be required
under Article 503 of the NAFTA (as implemented pursuant
to United States law), if the article were imported
from Mexico.
``(C) Report by ustr on cooperation of other
countries concerning circumvention.--The United States
Commissioner of Customs shall conduct a study analyzing
the extent to which each ATPEA beneficiary country--
``(i) has cooperated fully with the United
States, consistent with its domestic laws and
procedures, in instances of circumvention or
alleged circumvention of existing quotas on
imports of textile and apparel goods, to
establish necessary relevant facts in the
places of import, export, and, where
applicable, transshipment, including
investigation of circumvention practices,
exchanges of documents, correspondence,
reports, and other relevant information, to the
extent such information is available;
``(ii) has taken appropriate measures,
consistent with its domestic laws and
procedures, against exporters and importers
involved in instances of false declaration
concerning fiber content, quantities,
description, classification, or origin of
textile and apparel goods; and
``(iii) has penalized the individuals and
entities involved in any such circumvention,
consistent with its domestic laws and
procedures, and has worked closely to seek the
cooperation of any third country to prevent
such circumvention from taking place in that
third country.
The Trade Representative shall submit to Congress, not
later than October 1, 2002, a report on the study
conducted under this subparagraph.
``(5) Definitions and special rules.--For purposes of this
subsection--
``(A) Annex.--The term `the Annex' means Annex 300-
B of the NAFTA.
``(B) ATPEA beneficiary country.--The term `ATPEA
beneficiary country' means any `beneficiary country',
as defined in section 203(a)(1) of this title, which
the President designates as an ATPEA beneficiary
country, taking into account the criteria contained in
subsections (c) and (d) of section 203 and other
appropriate criteria, including the following:
``(i) Whether the beneficiary country has
demonstrated a commitment to--
``(I) undertake its obligations
under the WTO, including those
agreements listed in section 101(d) of
the Uruguay Round Agreements Act, on or
ahead of schedule; and
``(II) participate in negotiations
toward the completion of the FTAA or
another free trade agreement.
``(ii) The extent to which the country
provides protection of intellectual property
rights consistent with or greater than the
protection afforded under the Agreement on
Trade-Related Aspects of Intellectual Property
Rights described in section 101(d)(15) of the
Uruguay Round Agreements Act.
``(iii) The extent to which the country
provides internationally recognized worker
rights, including--
``(I) the right of association;
``(II) the right to organize and
bargain collectively;
``(III) a prohibition on the use of
any form of forced or compulsory labor;
``(IV) a minimum age for the
employment of children; and
``(V) acceptable conditions of work
with respect to minimum wages, hours of
work, and occupational safety and
health.
``(iv) Whether the country has implemented
its commitments to eliminate the worst forms of
child labor, as defined in section 507(6) of
the Trade Act of 1974.
``(v) The extent to which the country has
met the counter-narcotics certification
criteria set forth in section 490 of the
Foreign Assistance Act of 1961 (22 U.S.C.
2291j) for eligibility for United States
assistance.
``(vi) The extent to which the country has
taken steps to become a party to and implements
the Inter-American Convention Against
Corruption.
``(vii) The extent to which the country--
``(I) applies transparent,
nondiscriminatory, and competitive
procedures in government procurement
equivalent to those contained in the
Agreement on Government Procurement
described in section 101(d)(17) of the
Uruguay Round Agreements Act; and
``(II) contributes to efforts in
international fora to develop and
implement international rules in
transparency in government procurement.
``(viii) The extent to which the country
has taken steps to support the efforts of the
United States to combat terrorism.
``(C) ATPEA originating good.--
``(i) In general.--The term `ATPEA
originating good' means a good that meets the
rules of origin for a good set forth in chapter
4 of the NAFTA as implemented pursuant to
United States law.
``(ii) Application of chapter 4.--In
applying chapter 4 of the NAFTA with respect to
an ATPEA beneficiary country for purposes of
this subsection--
``(I) no country other than the
United States and an ATPEA beneficiary
country may be treated as being a party
to the NAFTA;
``(II) any reference to trade
between the United States and Mexico
shall be deemed to refer to trade
between the United States and an ATPEA
beneficiary country;
``(III) any reference to a party
shall be deemed to refer to an ATPEA
beneficiary country or the United
States; and
``(IV) any reference to parties
shall be deemed to refer to any
combination of ATPEA beneficiary
countries or to the United States and
one or more ATPEA beneficiary countries
(or any combination thereof).
``(D) Transition period.--The term `transition
period' means, with respect to an ATPEA beneficiary
country, the period that begins on the date of
enactment, and ends on the earlier of--
``(i) February 28, 2006; or
``(ii) the date on which the FTAA or
another free trade agreement that makes
substantial progress in achieving the
negotiating objectives set forth in section
108(b)(5) of Public Law 103-182 (19 U.S.C.
3317(b)(5)) enters into force with respect to
the United States and the ATPEA beneficiary
country.
``(E) ATPEA.--The term `ATPEA' means the Andean
Trade Preference Expansion Act.
``(F) FTAA.--The term `FTAA' means the Free Trade
Area of the Americas.''.
(b) Determination Regarding Retention of Designation.--Section
203(e) of the Andean Trade Preference Act (19 U.S.C. 3202(e)) is
amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively;
(B) by inserting ``(A)'' after ``(1)''; and
(C) by adding at the end the following:
``(B) The President may, after the requirements of paragraph (2)
have been met--
``(i) withdraw or suspend the designation of any country as
an ATPEA beneficiary country; or
``(ii) withdraw, suspend, or limit the application of
preferential treatment under section 204(b) (2) and (3) to any
article of any country;
if, after such designation, the President determines that, as a result
of changed circumstances, the performance of such country is not
satisfactory under the criteria set forth in section 204(b)(5)(B).'';
and
(2) by adding after paragraph (2) the following new
paragraph:
``(3) If preferential treatment under section 204(b) (2) and (3) is
withdrawn, suspended, or limited with respect to an ATPEA beneficiary
country, such country shall not be deemed to be a `party' for the
purposes of applying section 204(b)(5)(C) to imports of articles for
which preferential treatment has been withdrawn, suspended, or limited
with respect to such country.''.
(c) Reporting Requirements.--Section 203(f) of the Andean Trade
Preference Act (19 U.S.C. 3202(f)) is amended to read as follows:
``(f) Reporting Requirements.--
``(1) In general.--Not later than December 31, 2002, and
every 2 years thereafter during the period this title is in
effect, the United States Trade Representative shall submit to
Congress a report regarding the operation of this title,
including--
``(A) with respect to subsections (c) and (d), the
results of a general review of beneficiary countries
based on the considerations described in such
subsections; and
``(B) the performance of each beneficiary country
or ATPEA beneficiary country, as the case may be, under
the criteria set forth in section 204(b)(5)(B).
``(2) Public comment.--Before submitting the report
described in paragraph (1), the United States Trade
Representative shall publish a notice in the Federal Register
requesting public comments on whether beneficiary countries are
meeting the criteria listed in section 204(b)(5)(B).''.
(d) Conforming Amendments.--
(1) In general.--
(A) Section 202 of the Andean Trade Preference Act
(19 U.S.C. 3201) is amended by inserting ``(or other
preferential treatment)'' after ``treatment''.
(B) Section 204(a)(1) of the Andean Trade
Preference Act (19 U.S.C. 3203(a)(1)) is amended by
inserting ``(or otherwise provided for)'' after
``eligibility''.
(C) Section 204(a)(1) of the Andean Trade
Preference Act (19 U.S.C. 3203(a)(1)) is amended by
inserting ``(or preferential treatment)'' after ``duty-
free treatment''.
(2) Definitions.--Section 203(a) of the Andean Trade
Preference Act (19 U.S.C. 3202(a)) is amended by adding at the
end the following new paragraphs:
``(4) The term ``NAFTA'' means the North American Free
Trade Agreement entered into between the United States, Mexico,
and Canada on December 17, 1992.
``(5) The terms `WTO' and `WTO member' have the meanings
given those terms in section 2 of the Uruguay Round Agreements
Act (19 U.S.C. 3501).''.
(e) Petitions for Review.--
(1) In general.--Not later than 120 days after the date of
enactment of this Act, the President shall promulgate
regulations regarding the review of eligibility of articles and
countries under the Andean Trade Preference Act, consistent
with section 203(e) of such Act, as amended by this title.
(2) Content of regulations.--The regulations shall be
similar to the regulations regarding eligibility under the
Generalized System of Preferences with respect to the timetable
for reviews and content, and shall include procedures for
requesting withdrawal, suspension, or limitations of
preferential duty treatment under the Act, conducting reviews
of such requests, and implementing the results of the reviews.
SEC. 3103. TERMINATION.
(a) In General.--Section 208(b) of the Andean Trade Preference Act
(19 U.S.C. 3206(b)) is amended to read as follows:
``(b) Termination of Preferential Treatment.--No preferential duty
treatment extended to beneficiary countries under this Act shall remain
in effect after February 28, 2006.''.
(b) Retroactive Application for Certain Liquidations and
Reliquidations.--
(1) In general.--Notwithstanding section 514 of the Tariff
Act of 1930 or any other provision of law, and subject to
paragraph (3), the entry--
(A) of any article to which duty-free treatment (or
preferential treatment) under the Andean Trade
Preference Act (19 U.S.C. 3201 et seq.) would have
applied if the entry had been made on December 4, 2001,
(B) that was made after December 4, 2001, and
before the date of the enactment of this Act, and
(C) to which duty-free treatment (or preferential
treatment) under the Andean Trade Preference Act did
not apply,
shall be liquidated or reliquidated as if such duty-free
treatment (or preferential treatment) applied, and the
Secretary of the Treasury shall refund any duty paid with
respect to such entry.
(2) Entry.--As used in this subsection, the term ``entry''
includes a withdrawal from warehouse for consumption.
(3) Requests.--Liquidation or reliquidation may be made
under paragraph (1) with respect to an entry only if a request
therefor is filed with the Customs Service, within 180 days
after the date of the enactment of this Act, that contains
sufficient information to enable the Customs Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be
located.
TITLE XXXII--MISCELLANEOUS TRADE BENEFITS
SEC. 3201. WOOL PROVISIONS.
(a) Short Title.--This section may be cited as the ``Wool
Manufacturer Payment Clarification and Technical Corrections Act''.
(b) Clarification of Temporary Duty Suspension.--Heading 9902.51.13
of the Harmonized Tariff Schedule of the United States is amended by
inserting ``average'' before ``diameters''.
(c) Payments to Manufacturers of Certain Wool Products.--
(1) Payments.--Section 505 of the Trade and Development Act
of 2000 (Public Law 106-200; 114 Stat. 303) is amended as
follows:
(A) Subsection (a) is amended--
(i) by striking ``In each of the calendar
years'' and inserting ``For each of the
calendar years''; and
(ii) by striking ``for a refund of duties''
and all that follows through the end of the
subsection and inserting ``for a payment equal
to an amount determined pursuant to subsection
(d)(1).''.
(B) Subsection (b) is amended to read as follows:
``(b) Wool Yarn.--
``(1) Importing manufacturers.--For each of the calendar
years 2000, 2001, and 2002, a manufacturer of worsted wool
fabrics who imports wool yarn of the kind described in heading
9902.51.13 of the Harmonized Tariff Schedule of the United
States shall be eligible for a payment equal to an amount
determined pursuant to subsection (d)(2).
``(2) Nonimporting manufacturers.--For each of the calendar
years 2001 and 2002, any other manufacturer of worsted wool
fabrics of imported wool yarn of the kind described in heading
9902.51.13 of the Harmonized Tariff Schedule of the United
States shall be eligible for a payment equal to an amount
determined pursuant to subsection (d)(2).''.
(C) Subsection (c) is amended to read as follows:
``(c) Wool Fiber and Wool Top.--
``(1) Importing manufacturers.--For each of the calendar
years 2000, 2001, and 2002, a manufacturer of wool yarn or wool
fabric who imports wool fiber or wool top of the kind described
in heading 9902.51.14 of the Harmonized Tariff Schedule of the
United States shall be eligible for a payment equal to an
amount determined pursuant to subsection (d)(3).
``(2) Nonimporting manufacturers.--For each of the calendar
years 2001 and 2002, any other manufacturer of wool yarn or
wool fabric of imported wool fiber or wool top of the kind
described in heading 9902.51.14 of the Harmonized Tariff
Schedule of the United States shall be eligible for a payment
equal to an amount determined pursuant to subsection (d)(3).''.
(D) Section 505 is further amended by striking
subsection (d) and inserting the following new
subsections:
``(d) Amount of Annual Payments to Manufacturers.--
``(1) Manufacturers of men's suits, etc. of imported
worsted wool fabrics.--
``(A) Eligible to receive more than $5,000.--Each
annual payment to manufacturers described in subsection
(a) who, according to the records of the Customs
Service as of September 11, 2001, are eligible to
receive more than $5,000 for each of the calendar years
2000, 2001, and 2002, shall be in an amount equal to
one-third of the amount determined by multiplying
$30,124,000 by a fraction--
``(i) the numerator of which is the amount
attributable to the duties paid on eligible
wool products imported in calendar year 1999 by
the manufacturer making the claim, and
``(ii) the denominator of which is the
total amount attributable to the duties paid on
eligible wool products imported in calendar
year 1999 by all the manufacturers described in
subsection (a) who, according to the records of
the Customs Service as of September 11, 2001,
are eligible to receive more than $5,000 for
each such calendar year under this section as
it was in effect on that date.
``(B) Eligible wool products.--For purposes of
subparagraph (A), the term `eligible wool products'
refers to imported worsted wool fabrics described in
subsection (a).
``(C) Others.--All manufacturers described in
subsection (a), other than the manufacturers to which
subparagraph (A) applies, shall each receive an annual
payment in an amount equal to one-third of the amount
determined by dividing $1,665,000 by the number of all
such other manufacturers.
``(2) Manufacturers of worsted wool fabrics of imported
wool yarn.--
``(A) Importing manufacturers.--Each annual payment
to an importing manufacturer described in subsection
(b)(1) shall be in an amount equal to one-third of the
amount determined by multiplying $2,202,000 by a
fraction--
``(i) the numerator of which is the amount
attributable to the duties paid on eligible
wool products imported in calendar year 1999 by
the importing manufacturer making the claim,
and
``(ii) the denominator of which is the
total amount attributable to the duties paid on
eligible wool products imported in calendar
year 1999 by all the importing manufacturers
described in subsection (b)(1).
``(B) Eligible wool products.--For purposes of
subparagraph (A), the term `eligible wool products'
refers to imported wool yarn described in subsection
(b)(1).
``(C) Nonimporting manufacturers.--Each annual
payment to a nonimporting manufacturer described in
subsection (b)(2) shall be in an amount equal to one-
half of the amount determined by multiplying $141,000
by a fraction--
``(i) the numerator of which is the amount
attributable to the purchases of imported
eligible wool products in calendar year 1999 by
the nonimporting manufacturer making the claim,
and
``(ii) the denominator of which is the
total amount attributable to the purchases of
imported eligible wool products in calendar
year 1999 by all the nonimporting manufacturers
described in subsection (b)(2).
``(3) Manufacturers of wool yarn or wool fabric of imported
wool fiber or wool top.--
``(A) Importing manufacturers.--Each annual payment
to an importing manufacturer described in subsection
(c)(1) shall be in an amount equal to one-third of the
amount determined by multiplying $1,522,000 by a
fraction--
``(i) the numerator of which is the amount
attributable to the duties paid on eligible
wool products imported in calendar year 1999 by
the importing manufacturer making the claim,
and
``(ii) the denominator of which is the
total amount attributable to the duties paid on
eligible wool products imported in calendar
year 1999 by all the importing manufacturers
described in subsection (c)(1).
``(B) Eligible wool products.--For purposes of
subparagraph (A), the term `eligible wool products'
refers to imported wool fiber or wool top described in
subsection (c)(1).
``(C) Nonimporting manufacturers.--Each annual
payment to a nonimporting manufacturer described in
subsection (c)(2) shall be in an amount equal to one-
half of the amount determined by multiplying $597,000
by a fraction--
``(i) the numerator of which is the amount
attributable to the purchases of imported
eligible wool products in calendar year 1999 by
the nonimporting manufacturer making the claim,
and
``(ii) the denominator of which is the
amount attributable to the purchases of
imported eligible wool products in calendar
year 1999 by all the nonimporting manufacturers
described in subsection (c)(2).
``(4) Letters of intent.--Except for the nonimporting
manufacturers described in subsections (b)(2) and (c)(2) who
may make claims under this section by virtue of the enactment
of the Wool Manufacturer Payment Clarification and Technical
Corrections Act, only manufacturers who, according to the
records of the Customs Service, filed with the Customs Service
before September 11, 2001, letters of intent to establish
eligibility to be claimants are eligible to make a claim for a
payment under this section.
``(5) Amount attributable to purchases by nonimporting
manufacturers.--
``(A) Amount attributable.--For purposes of
paragraphs (2)(C) and (3)(C), the amount attributable
to the purchases of imported eligible wool products in
calendar year 1999 by a nonimporting manufacturer shall
be the amount the nonimporting manufacturer paid for
eligible wool products in calendar year 1999, as
evidenced by invoices. The nonimporting manufacturer
shall make such calculation and submit the resulting
amount to the Customs Service, within 45 days after the
date of enactment of the Wool Manufacturer Payment
Clarification and Technical Corrections Act, in a
signed affidavit that attests that the information
contained therein is true and accurate to the best of
the affiant's belief and knowledge. The nonimporting
manufacturer shall retain the records upon which the
calculation is based for a period of five years
beginning on the date the affidavit is submitted to the
Customs Service.
``(B) Eligible wool product.--For purposes of
subparagraph (A)--
``(i) the eligible wool product for
nonimporting manufacturers of worsted wool
fabrics is wool yarn of the kind described in
heading 9902.51.13 of the Harmonized Tariff
Schedule of the United States purchased in
calendar year 1999; and
``(ii) the eligible wool products for
nonimporting manufacturers of wool yarn or wool
fabric are wool fiber or wool top of the kind
described in heading 9902.51.14 of such
Schedule purchased in calendar year 1999.
``(6) Amount attributable to duties paid.--For purposes of
paragraphs (1), (2)(A), and (3)(A), the amount attributable to
the duties paid by a manufacturer shall be the amount shown on
the records of the Customs Service as of September 11, 2001,
under this section as then in effect.
``(7) Schedule of payments; reallocations.--
``(A) Schedule.--Of the payments described in
paragraphs (1), (2)(A), and (3)(A), the Customs Service
shall make the first and second installments on or
before the date that is 45 days after the date of
enactment of the Wool Manufacturer Payment
Clarification and Technical Corrections Act, and the
third installment on or before April 15, 2003. Of the
payments described in paragraphs (2)(C) and (3)(C), the
Customs Service shall make the first installment on or
before the date that is 45 days after the date of
enactment of the Wool Manufacturer Payment
Clarification and Technical Corrections Act, and the
second installment on or before April 15, 2003.
``(B) Reallocations.--In the event that a
manufacturer that would have received payment under
subparagraph (A) or (C) of paragraph (1), (2), or (3)
ceases to be qualified for such payment as such a
manufacturer, the amounts otherwise payable to the
remaining manufacturers under such subparagraph shall
be increased on a pro rata basis by the amount of the
payment such manufacturer would have received.
``(8) Reference.--For purposes of paragraphs (1)(A) and
(6), the `records of the Customs Service as of September 11,
2001' are the records of the Wool Duty Unit of the Customs
Service on September 11, 2001, as adjusted by the Customs
Service to the extent necessary to carry out this section. The
amounts so adjusted are not subject to administrative or
judicial review.
``(e) Affidavits by Manufacturers.--
``(1) Affidavit required.--A manufacturer may not receive a
payment under this section for calendar year 2000, 2001, or
2002, as the case may be, unless that manufacturer has
submitted to the Customs Service for that calendar year a
signed affidavit that attests that, during that calendar year,
the affiant was a manufacturer in the United States described
in subsection (a), (b), or (c).
``(2) Timing.--An affidavit under paragraph (1) shall be
valid--
``(A) in the case of a manufacturer described in
paragraph (1), (2)(A), or (3)(A) of subsection (d)
filing a claim for a payment for calendar year 2000 or
2001, or both, only if the affidavit is postmarked no
later than 15 days after the date of enactment of the
Wool Manufacturer Payment Clarification and Technical
Corrections Act; and
``(B) in the case of a claim for a payment for
calendar year 2002, only if the affidavit is postmarked
no later than March 1, 2003.
``(f) Offsets.--Notwithstanding any other provision of this
section, any amount otherwise payable under subsection (d) to a
manufacturer in calendar year 2001 and, where applicable, in calendar
years 2002 and 2003, shall be reduced by the amount of any payment
received by that manufacturer under this section before the enactment
of the Wool Manufacturer Payment Clarification and Technical
Corrections Act.
``(g) Definition.--For purposes of this section, the manufacturer
is the party that owns--
``(1) imported worsted wool fabric, of the kind described
in heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff
Schedule of the United States, at the time the fabric is cut
and sewn in the United States into men's or boys' suits, suit-
type jackets, or trousers;
``(2) imported wool yarn, of the kind described in heading
9902.51.13 of such Schedule, at the time the yarn is processed
in the United States into worsted wool fabric; or
``(3) imported wool fiber or wool top, of the kind
described in heading 9902.51.14 of such Schedule, at the time
the wool fiber or wool top is processed in the United States
into wool yarn.''.
(2) Funding.--There is authorized to be appropriated and is
appropriated, out of amounts in the General Fund of the
Treasury not otherwise appropriated, $36,251,000 to carry out
the amendments made by paragraph (1).
SEC. 3202. DUTY SUSPENSION ON WOOL.
(a) Extension of Temporary Duty Reductions.--
(1) Heading 9902.51.11.-- Heading 9902.51.11 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(2) Heading 9902.51.12.-- Heading 9902.51.12 of the
Harmonized Tariff Schedule of the United States is amended--
(A) by striking ``2003'' and inserting ``2005'';
and
(B) by striking ``6%'' and inserting ``Free''.
(3) Heading 9902.51.13.--Heading 9902.51.13 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(4) Heading 9902.51.14.--Heading 9902.51.14 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(b) Limitation on Quantity of Imports.--
(1) Note 15.--U.S. Note 15 to subchapter II of chapter 99
of the Harmonized Tariff Schedule of the United States is
amended--
(A) by striking ``from January 1 to December 31 of
each year, inclusive''; and
(B) by striking ``, or such other'' and inserting
the following: ``in calendar year 2001, 3,500,000
square meter equivalents in calendar year 2002, and
4,500,000 square meter equivalents in calendar year
2003 and each calendar year thereafter, or such
greater''.
(2) Note 16.--U.S. Note 16 to subchapter II of chapter 99
of the Harmonized Tariff Schedule of the United States is
amended--
(A) by striking ``from January 1 to December 31 of
each year, inclusive''; and
(B) by striking ``, or such other'' and inserting
the following: ``in calendar year 2001, 2,500,000
square meter equivalents in calendar year 2002, and
3,500,000 square meter equivalents in calendar year
2003 and each calendar year thereafter, or such
greater''.
(c) Extension of Duty Refunds and Wool Research Trust Fund.--
(1) In general.--The United States Customs Service shall
pay each manufacturer that receives a payment under section 505
of the Trade and Development Act of 2000 (Public Law 106-200)
for calendar year 2002, and that provides an affidavit that it
remains a manufacturer in the United States as of January 1 of
the year of the payment, 2 additional payments, each payment
equal to the payment received for calendar year 2002 as
follows:
(A) The first payment to be made after January 1,
2004, but on or before April 15, 2004.
(B) The second payment to be made after January 1,
2005, but on or before April 15, 2005.
(2) Conforming amendment.--Section 506(f) of the Trade and
Development Act of 2000 (Public Law 106-200) is amended by
striking ``2004'' and inserting ``2006''.
(3) Authorization.--There is authorized to be appropriated
and is appropriated out of amounts in the general fund of the
Treasury not otherwise appropriated such sums as are necessary
to carry out the provisions of this subsection.
(d) Effective Date.--The amendment made by subsection (a)(2)(B)
applies to goods entered, or withdrawn from warehouse for consumption,
on or after January 1, 2002.
SEC. 3203. CEILING FANS.
(a) In General.--Notwithstanding any other provision of law,
ceiling fans classified under subheading 8414.51.00 of the Harmonized
Tariff Schedule of the United States imported from Thailand shall enter
duty-free and without any quantitative limitations, if duty-free
treatment under title V of the Trade Act of 1974 (19 U.S.C. 2461 et
seq.) would have applied to such entry had the competitive need
limitation been waived under section 503(d) of such Act.
(b) Applicability.--The provisions of this section shall apply to
ceiling fans described in subsection (a) that are entered, or withdrawn
from warehouse for consumption--
(1) on or after the date that is 15 days after the date of
enactment of this Act; and
(2) before July 30, 2002.
SEC. 3204. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS USED IN
NUCLEAR FACILITIES.
(a) In General.--Subheading 9902.84.02 of the Harmonized Tariff
Schedule of the United States is amended--
(1) by striking ``4.9%'' and inserting ``Free''; and
(2) by striking ``12/31/2003'' and inserting ``12/31/
2006''.
(b) Effective Date.--
(1) In general.--The amendments made by subsection (a)
shall apply to goods entered, or withdrawn from warehouse for
consumption, on or after January 1, 2002.
(2) Retroactive application.--Notwithstanding section 514
of the Tariff Act of 1930 or any other provision of law, and
subject to paragraph (4), the entry of any article--
(A) that was made on or after January 1, 2002, and
(B) to which duty-free treatment would have applied
if the amendment made by this section had been in
effect on the date of such entry,
shall be liquidated or reliquidated as if such duty-free
treatment applied, and the Secretary of the Treasury shall
refund any duty paid with respect to such entry.
(3) Entry.--As used in this subsection, the term ``entry''
includes a withdrawal from warehouse for consumption.
(4) Requests.--Liquidation or reliquidation may be made
under paragraph (2) with respect to an entry only if a request
therefor is filed with the Customs Service, within 180 days
after the date of the enactment of this Act, that contains
sufficient information to enable the Customs Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be
located.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER
PROVISIONS
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
SEC. 4101. GENERALIZED SYSTEM OF PREFERENCES.
(a) Extension of Duty-Free Treatment Under System.--Section 505 of
the Trade Act of 1974 (19 U.S.C. 2465) is amended by striking
``September 30, 2001'' and inserting ``December 31, 2006''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date of enactment of this Act.
(c) Retroactive Application for Certain Liquidations and
Reliquidations.--
(1) In general.--
(A) Entry of certain articles.--Notwithstanding
section 514 of the Tariff Act of 1930 or any other
provision of law, and subject to paragraph (2), the
entry--
(i) of any article to which duty-free
treatment under title V of the Trade Act of
1974 would have applied if the entry had been
made on September 30, 2001;
(ii) that was made after September 30,
2001, and before the date of enactment of this
Act; and
(iii) to which duty-free treatment under
title V of that Act did not apply,
shall be liquidated or reliquidated as free of duty,
and the Secretary of the Treasury shall refund any duty
paid with respect to such entry.
(B) Entry.--In this subsection, the term ``entry''
includes a withdrawal from warehouse for consumption.
(2) Requests.--Liquidation or reliquidation may be made
under paragraph (1) with respect to an entry only if a request
therefor is filed with the Customs Service, within 180 days
after the date of enactment of this Act, that contains
sufficient information to enable the Customs Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be
located.
SEC. 4102. AMENDMENTS TO GENERALIZED SYSTEM OF PREFERENCES.
(a) Eligibility for Generalized System of Preferences.--Section
502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)(F)) is
amended by striking the period at the end and inserting ``or such
country has not taken steps to support the efforts of the United States
to combat terrorism.''.
(b) Definition of Internationally Recognized Worker Rights.--
Section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4)) is
amended--
(1) by striking ``and'' at the end of subparagraph (D);
(2) by striking the period at the end of subparagraph (E)
and inserting ``; and'';
(3) by adding at the end the following new subparagraph:
``(F) a prohibition on discrimination with respect
to employment and occupation.''; and
(4) by amending subparagraph (D) to read as follows:
``(D) a minimum age for the employment of children,
and a prohibition on the worst forms of child labor, as
defined in paragraph (6);''.
TITLE XLII--OTHER PROVISIONS
SEC. 4201. TRANSPARENCY IN NAFTA TRIBUNALS.
(a) Findings.--Congress makes the following findings:
(1) Chapter Eleven of the North American Free Trade
Agreement (NAFTA) allows foreign investors to file claims
against signatory countries that directly or indirectly
nationalize or expropriate an investment, or take measures
``tantamount to nationalization or expropriation'' of such an
investment.
(2) Foreign investors have filed several claims against the
United States, arguing that regulatory activity has been
``tantamount to nationalization or expropriation''. Most
notably, a Canadian chemical company claimed $970,000,000 in
damages allegedly resulting from a California State regulation
banning the use of a gasoline additive produced by that
company.
(3) A claim under Chapter Eleven of the NAFTA is
adjudicated by a three-member panel, whose deliberations are
largely secret.
(4) While it may be necessary to protect the
confidentiality of business sensitive information, the general
lack of transparency of these proceedings has been excessive.
(b) Purpose.--The purpose of this amendment is to ensure that the
proceedings of the NAFTA investor protection tribunals are as
transparent as possible, consistent with the need to protect the
confidentiality of business sensitive information.
(c) Chapter 11 of NAFTA.--The President shall negotiate with Canada
and Mexico an amendment to Chapter Eleven of the NAFTA to ensure the
fullest transparency possible with respect to the dispute settlement
mechanism in that Chapter, consistent with the need to protect
information that is classified or confidential, by--
(1) ensuring that all requests for dispute settlement under
Chapter Eleven are promptly made public;
(2) ensuring that with respect to Chapter Eleven--
(A) all proceedings, submissions, findings, and
decisions are promptly made public; and
(B) all hearings are open to the public; and
(3) establishing a mechanism under that Chapter for
acceptance of amicus curiae submissions from businesses,
unions, and nongovernmental organizations.
(d) Certification Requirements.--Within one year of the date of
enactment of this Act, the U.S. Trade Representative shall certify to
Congress that the President has fulfilled the requirements set forth in
subsection (c).
SEC. 4202. EXPRESSION OF SOLIDARITY WITH ISRAEL IN ITS FIGHT AGAINST
TERRORISM.
(a) Findings.--Congress makes the following findings:
(1) The United States and Israel are now engaged in a
common struggle against terrorism and are on the frontlines of
a conflict thrust upon them against their will.
(2) President George W. Bush declared on November 21, 2001,
``We fight the terrorists and we fight all of those who give
them aid. America has a message for the nations of the world:
If you harbor terrorists, you are terrorists. If you train or
arm a terrorist, you are a terrorist. If you feed a terrorist
or fund a terrorist, you are a terrorist, and you will be held
accountable by the United States and our friends.''.
(3) The United States has committed to provide resources to
states on the frontline in the war against terrorism.
(b) Sense of Congress.--The Congress--
(1) stands in solidarity with Israel, a frontline state in
the war against terrorism, as it takes necessary steps to
provide security to its people by dismantling the terrorist
infrastructure in the Palestinian areas;
(2) remains committed to Israel's right to self-defense;
(3) will continue to assist Israel in strengthening its
homeland defenses;
(4) condemns Palestinian suicide bombings;
(5) demands that the Palestinian Authority fulfill its
commitment to dismantle the terrorist infrastructure in the
Palestinian areas;
(6) urges all Arab states, particularly the United States
allies, Egypt and Saudi Arabia, to declare their unqualified
opposition to all forms of terrorism, particularly suicide
bombing, and to act in concert with the United States to stop
the violence; and
(7) urges all parties in the region to pursue vigorously
efforts to establish a just, lasting, and comprehensive peace
in the Middle East.
SEC. 4203. LIMITATION ON USE OF CERTAIN REVENUE.
Notwithstanding any other provision of law, any revenue generated
from custom user fees imposed pursuant to Section 13031(j)(3) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(j)(3)) may be used only to fund the operations of the United States
Customs Service.
SEC. 4204. SENSE OF THE SENATE REGARDING THE UNITED STATES-RUSSIAN
FEDERATION SUMMIT MEETING, MAY 2002.
(a) Findings.--The Senate finds that--
(1) President George W. Bush will visit the Russian
Federation May 23-25, 2002, to meet with his Russian
counterpart, President Vladimir V. Putin;
(2) the President and President Putin, and the United
States and Russian governments, continue to cooperate closely
in the fight against international terrorism;
(3) the President seeks Russian cooperation in containing
the war-making capabilities of Iraq, including that country's
ongoing program to develop and deploy weapons of mass
destruction;
(4) during his visit, the President expects to sign a
treaty to significantly reduce deployed American and Russian
nuclear weapons by 2012;
(5) the President and his NATO partners have further
institutionalized United States-Russian security cooperation
through establishment of the NATO-Russia Council, which meets
for the first time on May 28, 2002, in Rome, Italy;
(6) during his visit, the President will continue to
address religious freedom and human rights concerns through
open and candid discussions with President Putin, with leading
Russian activists, and with representatives of Russia's
revitalized and diverse Jewish community; and
(7) recognizing Russia's progress on religious freedom and
a broad range of other mechanisms to address remaining
concerns, the President has asked the Congress to terminate
application to Russian of title IV of the Trade Act of 1974
(commonly known as the ``Jackson-Vanik Amendment'') and
authorize the extension of normal trade relations to the
products of Russia.
(b) Sense of the Senate.--The Senate--
(1) supports the President's efforts to deepen the
friendship between the American and Russian peoples;
(2) further supports the policy objectives of the President
mentioned in this section with respect to the Russian
Federation;
(3) supports terminating the application of title IV of the
Trade Act of 1974 to Russia in an appropriate and timely
manner; and
(4) looks forward to learning the results of the
President's discussions with President Putin and other
representatives of the Russian government and Russian society.
SEC. 4205. NO APPROPRIATIONS.
Notwithstanding any other provision of this Act, no direct
appropriation may be made under this Act.
Attest:
Secretary.
107th CONGRESS
2d Session
H. R. 3009
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AMENDMENT