[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3009 Enrolled Bill (ENR)]

        H.R.3009

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
          the twenty-third day of January, two thousand and two


                                 An Act


 
  To extend the Andean Trade Preference Act, to grant additional trade 
            benefits under that Act, and for other purposes.

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

SECTION 1. SHORT TITLE.

    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 5 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.
        (5) Division e.--Miscellaneous 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 PROGRAM

           Subtitle A--Trade Adjustment Assistance For Workers

Sec. 111. Reauthorization of trade adjustment assistance program.
Sec. 112. Filing of petitions and provision of rapid response 
          assistance; expedited review of petitions by secretary of 
          labor.
Sec. 113. Group eligibility requirements.
Sec. 114. Qualifying requirements for trade readjustment allowances.
Sec. 115. Waivers of training requirements.
Sec. 116. Amendments to limitations on trade readjustment allowances.
Sec. 117. Annual total amount of payments for training.
Sec. 118. Provision of employer-based training.
Sec. 119. Coordination with title I of the Workforce Investment Act of 
          1998.
Sec. 120. Expenditure period.
Sec. 121. Job search allowances.
Sec. 122. Relocation allowances.
Sec. 123. Repeal of NAFTA transitional adjustment assistance program.
Sec. 124. Demonstration project for alternative trade adjustment 
          assistance for older workers.
Sec. 125. Declaration of policy; sense of Congress.

            Subtitle B--Trade Adjustment Assistance For Firms

Sec. 131. Reauthorization of program.

           Subtitle C--Trade Adjustment Assistance For Farmers

Sec. 141. Trade adjustment assistance for farmers.
Sec. 142. Conforming amendments.
Sec. 143. Study on TAA for fishermen.

                       Subtitle D--Effective Date

Sec. 151. Effective date.

   TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS

Sec. 201. Credit for health insurance costs of individuals receiving a 
          trade readjustment allowance or a benefit from the Pension 
          Benefit Guaranty Corporation.
Sec. 202. Advance payment of credit for health insurance costs of 
          eligible individuals.
Sec. 203. Health insurance assistance for eligible individuals.

                   TITLE III--CUSTOMS REAUTHORIZATION

Sec. 301. Short title.

                Subtitle A--United States Customs Service

   Chapter 1--Drug Enforcement and Other Noncommercial and Commercial 
                               Operations

Sec. 311. Authorization of appropriations for noncommercial operations, 
          commercial operations, and air and marine interdiction.
Sec. 312. Antiterrorist and illicit narcotics detection equipment for 
          the United States-Mexico border, United States-Canada border, 
          and Florida and the Gulf Coast seaports.
Sec. 313. Compliance with performance plan requirements.

     Chapter 2--Child Cyber-smuggling Center of the Customs Service

Sec. 321. Authorization of appropriations for program to prevent child 
          pornography/child sexual exploitation.

                   Chapter 3--Miscellaneous Provisions

Sec. 331. Additional Customs Service officers for United States-Canada 
          Border.
Sec. 332. Study and report relating to personnel practices of the 
          Customs Service.
Sec. 333. Study and report relating to accounting and auditing 
          procedures of the Customs Service.
Sec. 334. Establishment and implementation of cost accounting system; 
          reports.
Sec. 335. Study and report relating to timeliness of prospective 
          rulings.
Sec. 336. Study and report relating to customs user fees.
Sec. 337. Fees for customs inspections at express courier facilities.
Sec. 338. National Customs Automation Program.
Sec. 339. Authorization of appropriations for customs staffing.

                   Chapter 4--Antiterrorism Provisions

Sec. 341. Immunity for United States officials that act in good faith.
Sec. 342. Emergency adjustments to offices, ports of entry, or staffing 
          of the customs service.
Sec. 343. Mandatory advanced electronic information for cargo and other 
          improved Customs reporting procedures.
Sec. 343A. Secure systems of transportation.
Sec. 344. Border search authority for certain contraband in outbound 
          mail.
Sec. 345. Authorization of appropriations for reestablishment of customs 
          operations in New York City.

               Chapter 5--Textile Transshipment Provisions

Sec. 351. GAO audit of textile transshipment monitoring by Customs 
          Service.
Sec. 352. Authorization of appropriations for textile transshipment 
          enforcement operations.
Sec. 353. Implementation of the African Growth and Opportunity Act.

      Subtitle B--Office of the United States Trade Representative

Sec. 361. Authorization of appropriations.

        Subtitle C--United States International Trade Commission

Sec. 371. Authorization of appropriations.

                   Subtitle D--Other trade provisions

Sec. 381. Increase in aggregate value of articles exempt from duty 
          acquired abroad by United States residents.
Sec. 382. Regulatory audit procedures.
Sec. 383. Payment of duties and fees.

            DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY

                  TITLE XXI--TRADE PROMOTION AUTHORITY

Sec. 2101. Short title and 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. Interests of small business.
Sec. 2113. Definitions.

                 DIVISION C--ANDEAN TRADE PREFERENCE ACT

                   TITLE XXXI--ANDEAN TRADE PREFERENCE

Sec. 3101. Short title.
Sec. 3102. Findings.
Sec. 3103. Articles eligible for preferential treatment.
Sec. 3104. Termination.
Sec. 3105. Report on Free Trade Agreement with Israel.
Sec. 3106. Modification of duty treatment for tuna.
Sec. 3107. Trade benefits under the caribbean basin economic recovery 
          act.
Sec. 3108. Trade benefits under the African Growth and Opportunity Act.

      DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT

        TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES

Sec. 4101. Extension of generalized system of preferences.
Sec. 4102. Amendments to generalized system of preferences.

                  DIVISION E--MISCELLANEOUS PROVISIONS

                  TITLE L--MISCELLANEOUS TRADE BENEFITS

                       Subtitle A--Wool Provisions

Sec. 5101. Wool provisions.
Sec. 5102. Duty suspension on wool.

                      Subtitle B--Other Provisions

Sec. 5201. Fund for WTO dispute settlements.
Sec. 5202. Certain steam or other vapor generating boilers used in 
          nuclear facilities.
Sec. 5203. Sugar tariff-rate quota circumvention.

                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 PROGRAM
          Subtitle A--Trade Adjustment Assistance For Workers

SEC. 111. REAUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM.

    (a) Assistance for Workers.--Section 245 of the Trade Act of 1974 
(19 U.S.C. 2317) is amended by striking ``October 1, 1998, and ending 
September 30, 2001,'' each place it appears and inserting ``October 1, 
2001, and ending September 30, 2007,''.
    (b) Assistance for Firms.--Section 256(b) of the Trade Act of 1974 
(19 U.S.C. 2346(b)) is amended by striking ``October 1, 1998, and 
ending September 30, 2001'' and inserting ``October 1, 2001, and ending 
September 30, 2007,''.
    (c) 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 chapter 2 of this title; 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 farmers.--
            ``(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 after September 
        30, 2007.
            ``(B) Exception.--Notwithstanding subparagraph (A), an 
        agricultural commodity producer (as defined in section 291(2)) 
        shall continue to receive adjustment assistance benefits and 
        other benefits under chapter 6, for any week for which the 
        agricultural commodity producer meets the eligibility 
        requirements of chapter 6, if on or before September 30, 2007, 
        the agricultural commodity producer is--
                ``(i) certified as eligible for adjustment assistance 
            benefits under chapter 6; and
                ``(ii) is otherwise eligible to receive adjustment 
            assistance benefits under such chapter 6.''.

SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE 
              ASSISTANCE; EXPEDITED REVIEW OF PETITIONS BY SECRETARY OF 
              LABOR.

    (a) Filing of Petitions and Provision of Rapid Response 
Assistance.--Section 221(a) of the Trade Act of 1974 (19 U.S.C. 
2271(a)) is amended to read as follows:
    ``(a)(1) A petition for certification of eligibility to apply for 
adjustment assistance for a group of workers under this chapter may be 
filed simultaneously with the Secretary and with the Governor of the 
State in which such workers' firm or subdivision is located by any of 
the following:
        ``(A) The group of workers (including workers in an 
    agricultural firm or subdivision of any agricultural firm).
        ``(B) The certified or recognized union or other duly 
    authorized representative of such workers.
        ``(C) Employers of such workers, one-stop operators or one-stop 
    partners (as defined in section 101 of the Workforce Investment Act 
    of 1998 (29 U.S.C. 2801)), including State employment security 
    agencies, or the State dislocated worker unit established under 
    title I of such Act, on behalf of such workers.
    ``(2) Upon receipt of a petition filed under paragraph (1), the 
Governor shall--
        ``(A) ensure that rapid response assistance, and appropriate 
    core and intensive services (as described in section 134 of the 
    Workforce Investment Act of 1998 (29 U.S.C. 2864)) authorized under 
    other Federal laws are made available to the workers covered by the 
    petition to the extent authorized under such laws; and
        ``(B) assist the Secretary in the review of the petition by 
    verifying such information and providing such other assistance as 
    the Secretary may request.
    ``(3) 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) Expedited Review of Petitions by Secretary of Labor.--Section 
223(a) of such Act (19 U.S.C. 2273(a)) is amended in the first sentence 
by striking ``60 days'' and inserting ``40 days''.

SEC. 113. GROUP ELIGIBILITY REQUIREMENTS.

    (a) Trade Adjustment Assistance Program.--
        (1) In general.--Section 222 of the Trade Act of 1974 (19 
    U.S.C. 2272) is amended--
            (A) by amending subsection (a) to read as follows:
    ``(a) In General.--A group of workers (including workers in any 
agricultural firm or subdivision of an agricultural firm) shall be 
certified by the Secretary as eligible to apply for adjustment 
assistance under this chapter pursuant to a petition filed under 
section 221 if the Secretary determines that--
        ``(1) a significant number or proportion of the workers in such 
    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
        ``(2)(A)(i) the sales or production, or both, of such firm or 
    subdivision have decreased absolutely;
        ``(ii) imports of articles like or directly competitive with 
    articles produced by such firm or subdivision have increased; and
        ``(iii) the increase in imports described in clause (ii) 
    contributed importantly to such workers' separation or threat of 
    separation and to the decline in the sales or production of such 
    firm or subdivision; or
        ``(B)(i) there has been a shift in production by such workers' 
    firm or subdivision to a foreign country of articles like or 
    directly competitive with articles which are produced by such firm 
    or subdivision; and
        ``(ii)(I) the country to which the workers' firm has shifted 
    production of the articles is a party to a free trade agreement 
    with the United States;
        ``(II) the country to which the workers' firm has shifted 
    production of the articles is a beneficiary country under the 
    Andean Trade Preference Act, African Growth and Opportunity Act, or 
    the Caribbean Basin Economic Recovery Act; or
        ``(III) there has been or is likely to be an increase in 
    imports of articles that are like or directly competitive with 
    articles which are or were produced by such firm or subdivision.'';
            (B) by redesignating subsection (b) as subsection (c); and
            (C) by inserting after subsection (a) the following:
    ``(b) Adversely affected secondary workers.--A group of workers 
(including workers in any agricultural firm or subdivision of an 
agricultural firm) shall be certified by the Secretary as eligible to 
apply for trade adjustment assistance benefits under this chapter if 
the Secretary determines that--
        ``(1) 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;
        ``(2) 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 
    subsection (a), and such supply or production is related to the 
    article that was the basis for such certification (as defined in 
    subsection (c) (3) and (4)); and
        ``(3) either--
            ``(A) the workers' firm is a supplier and the component 
        parts it supplied to the firm (or subdivision) described in 
        paragraph (2) accounted for at least 20 percent of the 
        production or sales of the workers' firm; or
            ``(B) a loss of business by the workers' firm with the firm 
        (or subdivision) described in paragraph (2) contributed 
        importantly to the workers' separation or threat of separation 
        determined under paragraph (1).''.
    (b) Definitions.--Section 222(c) of such Act, as redesignated by 
paragraph (1)(A), is amended--
        (1) in the matter preceding paragraph (1), by striking 
    ``subsection (a)(3)'' and inserting ``this section''; and
        (2) by adding at the end the following:
        ``(3) 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 subsection (a) of a group of workers employed 
    by such other firm, if the certification of eligibility under 
    subsection (a) is based on an increase in imports from, or a shift 
    in production to, Canada or Mexico.
        ``(4) 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 subsection (a) of a group of workers employed by 
    such other firm.''.

SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT ALLOWANCES.

    (a) Clarification of Certain Reductions.--Section 231(a)(3)(B) of 
the Trade Act of 1974 (19 U.S.C. 2291(a)(3)(B)) is amended by inserting 
after ``any unemployment insurance'' the following: ``, except 
additional compensation that is funded by a State and is not reimbursed 
from any Federal funds,''.
    (b) Enrollment in Training Requirement.--Section 231(a)(5)(A) of 
such Act (19 U.S.C. 2291(a)(5)(A)) is amended--
        (1) by inserting ``(i)'' after ``(A)'';
        (2) by adding ``and'' after the comma at the end; and
        (3) by adding at the end the following:
            ``(ii) the enrollment required under clause (i) occurs no 
        later than the latest of--
                ``(I) the last day of the 16th week after the worker's 
            most recent total separation from adversely affected 
            employment which meets the requirements of paragraphs (1) 
            and (2),
                ``(II) the last day of the 8th week after the week in 
            which the Secretary issues a certification covering the 
            worker,
                ``(III) 45 days after the later of the dates specified 
            in subclause (I) or (II), if the Secretary determines there 
            are extenuating circumstances that justify an extension in 
            the enrollment period, or
                ``(IV) the last day of a period determined by the 
            Secretary to be approved for enrollment after the 
            termination of a waiver issued pursuant to subsection 
            (c),''.

SEC. 115. WAIVERS OF TRAINING REQUIREMENTS.

    (a) In General.--Section 231(c) of the Trade Act of 1974 (19 U.S.C. 
2291(c)) is amended to read as follows:
    ``(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)(5)(A) if the 
    Secretary determines that it 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 therefor); 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.
        ``(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 and 
        shall notify the worker in writing of the revocation.
        ``(3) Agreements under section 239.--
            ``(A) Issuance by cooperating states.--Pursuant to an 
        agreement under section 239, the Secretary may authorize a 
        cooperating State to issue waivers as described in paragraph 
        (1).
            ``(B) Submission of statements.--An agreement under section 
        239 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.''.
    (b) Conforming Amendment.--Section 231(a)(5)(C) of such Act (19 
U.S.C. 2291(a)(5)(C)) is amended by striking ``certified''.

SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.

    (a) Increase in Maximum Number of Weeks.--Section 233(a) of the 
Trade Act of 1974 (19 U.S.C. 2293(a)) is amended--
        (1) in paragraph (2), by inserting after ``104-week period'' 
    the following: ``(or, in the case of an adversely affected worker 
    who requires a program of remedial education (as described in 
    section 236(a)(5)(D)) in order to complete training approved for 
    the worker under section 236, the 130-week period)''; and
        (2) in paragraph (3), by striking ``26'' each place it appears 
    and inserting ``52''.
    (b) Special Rule Relating to Break in Training.--Section 233(f) of 
the Trade Act of 1974 (19 U.S.C. 2293(f)) is amended in the matter 
preceding paragraph (1) by striking ``14 days'' and inserting ``30 
days''.
    (c) Additional Weeks for Individuals in Need of Remedial 
Education.--Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is 
amended by adding at the end the following:
    ``(g) Notwithstanding any other provision of this section, in order 
to assist an adversely affected worker to complete training approved 
for the worker under section 236 which includes a program of remedial 
education (as described in section 236(a)(5)(D)), and in accordance 
with regulations prescribed by the Secretary, payments may be made as 
trade readjustment allowances for up to 26 additional weeks in the 26-
week period that follows the last week of entitlement to trade 
readjustment allowances otherwise payable under this chapter.''.

SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR TRAINING.

    Section 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C. 
2296(a)(2)(A)) is amended by striking ``$80,000,000'' and all that 
follows through ``$70,000,000'' and inserting ``$220,000,000''.

SEC. 118. PROVISION OF EMPLOYER-BASED TRAINING.

    (a) In General.--Section 236(a)(5)(A) of the Trade Act of 1974 (19 
U.S.C. 2296(a)(5)(A)) is amended to read as follows:
        ``(A) employer-based training, including--
            ``(i) on-the-job training, and
            ``(ii) customized training,''.
    (b) Reimbursement.--Section 236(c)(8) of such Act (19 U.S.C. 
2296(c)(8)) is amended to read as follows:
        ``(8) 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,''.
    (c) Definition.--Section 236 of such Act (19 U.S.C. 2296) is 
amended by adding at the end the following new subsection:
    ``(f) For purposes of this section, the term `customized training' 
means training that is--
        ``(1) designed to meet the special requirements of an employer 
    or group of employers;
        ``(2) conducted with a commitment by the employer or group of 
    employers to employ an individual upon successful completion of the 
    training; and
        ``(3) for which the employer pays for a significant portion 
    (but in no case less than 50 percent) of the cost of such training, 
    as determined by the Secretary.''.

SEC. 119. COORDINATION WITH TITLE I OF THE WORKFORCE INVESTMENT ACT OF 
              1998.

    Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended by 
inserting before the period at the end of the first sentence the 
following: ``, including the services provided through one-stop 
delivery systems described in section 134(c) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2864(c))''.

SEC. 120. EXPENDITURE PERIOD.

    Section 245 of the Trade Act of 1974 (19 U.S.C. 2317), as amended 
by section 111(a) of this Act, is further amended by amending 
subsection (b) to read as follows:
    ``(b) Period of Expenditure.--Funds obligated for any fiscal year 
to carry out activities under sections 235 through 238 may be expended 
by each State receiving such funds during that fiscal year and the 
succeeding two fiscal years.''.

SEC. 121. JOB SEARCH ALLOWANCES.

    Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended to 
read as follows:

``SEC. 237. JOB SEARCH ALLOWANCES.

    ``(a) Job Search Allowance Authorized.--
        ``(1) In general.--An adversely affected worker covered by a 
    certification issued under subchapter A of this chapter 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 231(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 236(b) (1) and (2).
    ``(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. 122. RELOCATION ALLOWANCES.

    Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended to 
read as follows:

``SEC. 238. RELOCATION ALLOWANCES.

    ``(a) Relocation Allowance Authorized.--
        ``(1) In general.--Any adversely affected worker covered by a 
    certification issued under subchapter A of this chapter 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 subchapter A of this chapter; 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 231(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 
    236(b) (1) and (2) 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 236(b) (1) and (2).''.

SEC. 123. REPEAL OF NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE PROGRAM.

    (a) In General.--Subchapter D of chapter 2 of title II of such Act 
(19 U.S.C. 2331) is repealed.
    (b) Conforming Amendments.--
        (1) Section 225(b) (1) and (2) of the Trade Act of 1974 (19 
    U.S.C. 2275(b) (1) and (2)) is amended by striking ``or subchapter 
    D'' each place it appears.
        (2) Section 249A of such Act (19 U.S.C. 2322) is repealed.
        (3) The table of contents of such Act is amended--
            (A) by striking the item relating to section 249A; and
            (B) by striking the items relating to subchapter D of 
        chapter 2 of title II.
        (4) Section 284(a) of such Act is amended by striking ``or 
    section 250(c)''.
    (c) Effective Date.--
        (1) In general.--The amendments made by this section shall 
    apply with respect to petitions filed under chapter 2 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.
        (2) Workers certified as eligible before effective date.--
    Notwithstanding subsection (a), a worker receiving benefits under 
    chapter 2 of title II of the Trade Act of 1974 shall continue to 
    receive (or be eligible to receive) benefits and services under 
    chapter 2 of title II of the Trade Act of 1974, as in effect on the 
    day before the amendments made by this section take effect under 
    subsection (a), for any week for which the worker meets the 
    eligibility requirements of such chapter 2 as in effect on such 
    date.

SEC. 124. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE ADJUSTMENT 
              ASSISTANCE FOR OLDER WORKERS.

    (a) Demonstration Program.--Chapter 2 of title II of the Trade Act 
of 1974 (19 U.S.C. 2271 et seq.) is amended by striking section 246 and 
inserting the following new section:

``SEC. 246. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE ADJUSTMENT 
              ASSISTANCE FOR OLDER WORKERS.

    ``(a) In General.--
        ``(1) Establishment.--Not later than 1 year after the date of 
    enactment of the Trade Adjustment Assistance Reform Act of 2002, 
    the Secretary shall establish an alternative trade adjustment 
    assistance program for older workers that provides the benefits 
    described in paragraph (2).
        ``(2) Benefits.
            ``(A) Payments.--A State shall use the funds provided to 
        the State under section 241 to pay, for a period not to exceed 
        2 years, to a worker described in paragraph (3)(B), 50 percent 
        of the difference between--
                ``(i) the wages received by the worker from 
            reemployment; and
                ``(ii) the wages received by the worker at the time of 
            separation.
            ``(B) Health insurance.--A worker described in paragraph 
        (3)(B) participating in the program established under paragraph 
        (1) is eligible to receive, for a period not to exceed 2 years, 
        a credit for health insurance costs under section 35 of the 
        Internal Revenue Code of 1986, as added by section 201 of the 
        Trade Act of 2002.
        ``(3) Eligibility.--
            ``(A) Firm eligibility.--
                ``(i) In general.--The Secretary shall provide the 
            opportunity for a group of workers on whose behalf a 
            petition is filed under section 221 to request that the 
            group of workers be certified for the alternative trade 
            adjustment assistance program under this section at the 
            time the petition is filed.
                ``(ii) Criteria.--In determining whether to certify a 
            group of workers as eligible for the alternative trade 
            adjustment assistance program, the Secretary shall consider 
            the following criteria:

                    ``(I) Whether a significant number of workers in 
                the workers' firm are 50 years of age or older.
                    ``(II) Whether the workers in the workers' firm 
                possess skills that are not easily transferable.
                    ``(III) The competitive conditions within the 
                workers' industry.

                ``(iii) Deadline.--The Secretary shall determine 
            whether the workers in the group are eligible for the 
            alternative trade adjustment assistance program by the date 
            specified in section 223(a).
            ``(B) Individual Eligibility.--A worker in the group that 
        the Secretary has certified as eligible for the alternative 
        trade adjustment assistance program may elect to receive 
        benefits under the alternative trade adjustment assistance 
        program if the worker--
                ``(i) is covered by a certification under subchapter A 
            of this chapter;
                ``(ii) obtains reemployment not more than 26 weeks 
            after the date of separation from the adversely affected 
            employment;
                ``(iii) is at least 50 years of age; and
                ``(iv) earns not more than $50,000 a year in wages from 
            reemployment;
                ``(v) is employed on a full-time basis as defined by 
            State law in the State in which the worker is employed; and
                ``(vi) does not return to the employment from which the 
            worker was separated.
        ``(4) Total amount of payments.--The payments described in 
    paragraph (2)(A) made to a worker may not exceed $10,000 per worker 
    during the 2-year eligibility period.
        ``(5) Limitation on other benefits.--Except as provided in 
    section 238(a)(2)(B), if a worker is receiving payments pursuant to 
    the program established under paragraph (1), the worker shall not 
    be eligible to receive any other benefits under this title.
    ``(b) Termination.--
        ``(1) In general.--Except as provided in paragraph (2), no 
    payments may be made by a State under the program established under 
    subsection (a)(1) after the date that is 5 years after the date on 
    which such program is implemented by the State.
        ``(2) Exception.--Notwithstanding paragraph (1), a worker 
    receiving payments under the program established under subsection 
    (a)(1) on the termination date described in paragraph (1) shall 
    continue to receive such payments provided that the worker meets 
    the criteria described in subsection (a)(3)(B).''.
    (b) Table of Contents.--The Trade Act of 1974 (U.S.C. et seq.) is 
amended in the table of contents by inserting after the item relating 
to section 245 the following new item:
``Sec. 246.  Demonstration project for alternative trade adjustment 
          assistance for older workers.''.

SEC. 125. DECLARATION OF POLICY; SENSE OF CONGRESS.

    (a) Declaration of Policy.--Congress reiterates that, under the 
trade adjustment assistance program under chapter 2 of title II of the 
Trade Act of 1974, workers are eligible for transportation, childcare, 
and healthcare assistance, as well as other related assistance under 
programs administered by the Department of Labor.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Labor, working independently and in conjunction with the 
States, should, in accordance with section 225 of the Trade Act of 
1974, provide more specific information about benefit allowances, 
training, and other employment services, and the petition and 
application procedures (including appropriate filing dates) for such 
allowances, training, and services, under the trade adjustment 
assistance program under chapter 2 of title II of the Trade Act of 1974 
to workers who are applying for, or are certified to receive, 
assistance under that program, including information on all other 
Federal assistance available to such workers.

           Subtitle B--Trade Adjustment Assistance For Firms

SEC. 131. REAUTHORIZATION OF PROGRAM.

    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 2003 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.''.

          Subtitle C--Trade Adjustment Assistance For Farmers

SEC. 141. 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) 
    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)).
        ``(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 and in which 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 
agricultural commodity 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) Limitations.--
            ``(A) Adjusted gross income.--
                ``(i) 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 the level set forth in section 1001D of 
            the Food Security Act of 1985.
                ``(ii) 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 the level set forth in 
                section 1001D of the Food Security Act of 1985; or
                    ``(II) information and documentation regarding the 
                adjusted gross income of the producer through other 
                procedures established by the Secretary.

            ``(B) Counter-cyclical payments.--The total amount of 
        payments made to an agricultural producer under this chapter 
        during any crop year may not exceed the limitation on counter-
        cyclical payments set forth in section 1001(c) of the Food 
        Security Act of 1985.
            ``(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 II of subchapter B 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 2003 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.

SEC. 142. CONFORMING AMENDMENTS.

    (a) Judicial review.--
        (1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) 
    is amended--
            (A) by inserting ``an agricultural commodity producer (as 
        defined in section 291(2)) aggrieved by a determination of the 
        Secretary of Agriculture under section 293, '' after ``section 
        251 of this title,''; and
            (B) in the second sentence of subsection (a) and in 
        subsections (b) and (c), by striking ``or the Secretary of 
        Commerce'' each place it appears and inserting ``, the 
        Secretary of Commerce, or the Secretary of Agriculture''.
    (b) Chapters 6.--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.''.

SEC. 143. STUDY ON TAA FOR FISHERMEN.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Commerce shall conduct a study and report to Congress 
regarding whether a trade adjustment assistance program is appropriate 
and feasible for fishermen. For purposes of the preceding sentence, the 
term ``fishermen'' means any person who is engaged in commercial 
fishing or is a United States fish processor.

                       Subtitle D--Effective Date

SEC. 151. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in sections 123(c) 
and 141(b), and subsections (b), (c), and (d) of this section, the 
amendments made by this division shall apply to 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.
    (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 of 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 II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS

SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS RECEIVING A 
              TRADE READJUSTMENT ALLOWANCE OR A BENEFIT FROM THE 
              PENSION BENEFIT GUARANTY CORPORATION.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and inserting 
after section 34 the following new section:

``SEC. 35. HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.

    ``(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 65 percent of the amount paid by the taxpayer for coverage of 
the taxpayer and qualifying family members under qualified health 
insurance for eligible coverage months beginning in the taxable year.
    ``(b) Eligible Coverage Month.--For purposes of this section--
        ``(1) In general.--The term `eligible coverage month' means any 
    month if--
            ``(A) as of the first day of such month, the taxpayer--
                ``(i) is an eligible individual,
                ``(ii) is covered by qualified health insurance, the 
            premium for which is paid by the taxpayer,
                ``(iii) does not have other specified coverage, and
                ``(iv) is not imprisoned under Federal, State, or local 
            authority, and
            ``(B) such month begins more than 90 days after the date of 
        the enactment of the Trade Act of 2002.
        ``(2) Joint returns.--In the case of a joint return, the 
    requirements of paragraph (1)(A) shall be treated as met with 
    respect to any month if at least 1 spouse satisfies such 
    requirements.
    ``(c) Eligible Individual.--For purposes of this section--
        ``(1) In general.--The term `eligible individual' means--
            ``(A) an eligible TAA recipient,
            ``(B) an eligible alternative TAA recipient, and
            ``(C) an eligible PBGC pension recipient.
        ``(2) Eligible taa recipient.--The term `eligible TAA 
    recipient' means, with respect to any month, any individual who is 
    receiving for any day of such month a trade readjustment allowance 
    under chapter 2 of title II of the Trade Act of 1974 or who would 
    be eligible to receive such allowance if section 231 of such Act 
    were applied without regard to subsection (a)(3)(B) of such 
    section. An individual shall continue to be treated as an eligible 
    TAA recipient during the first month that such individual would 
    otherwise cease to be an eligible TAA recipient by reason of the 
    preceding sentence.
        ``(3) Eligible alternative taa recipient.--The term `eligible 
    alternative TAA recipient' means, with respect to any month, any 
    individual who--
            ``(A) is a worker described in section 246(a)(3)(B) of the 
        Trade Act of 1974 who is participating in the program 
        established under section 246(a)(1) of such Act, and
            ``(B) is receiving a benefit for such month under section 
        246(a)(2) of such Act.
    An individual shall continue to be treated as an eligible 
    alternative TAA recipient during the first month that such 
    individual would otherwise cease to be an eligible alternative TAA 
    recipient by reason of the preceding sentence.
        ``(4) Eligible pbgc pension recipient.--The term `eligible PBGC 
    pension recipient' means, with respect to any month, any individual 
    who--
            ``(A) has attained age 55 as of the first day of such 
        month, and
            ``(B) is receiving a benefit for such month any portion of 
        which is paid by the Pension Benefit Guaranty Corporation under 
        title IV of the Employee Retirement Income Security Act of 
        1974.
    ``(d) Qualifying Family Member.--For purposes of this section--
        ``(1) In general.--The term `qualifying family member' means--
            ``(A) the taxpayer's spouse, and
            ``(B) any dependent of the taxpayer with respect to whom 
        the taxpayer is entitled to a deduction under section 151(c).
    Such term does not include any individual who has other specified 
    coverage.
        ``(2) Special dependency test in case of divorced parents, 
    etc.--If paragraph (2) or (4) of section 152(e) applies to any 
    child with respect to any calendar year, in the case of any taxable 
    year beginning in such calendar year, such child shall be treated 
    as described in paragraph (1)(B) with respect to the custodial 
    parent (within the meaning of section 152(e)(1)) and not with 
    respect to the noncustodial parent.
    ``(e) Qualified Health Insurance.--For purposes of this section--
        ``(1) In general.--The term `qualified health insurance' means 
    any of the following:
            ``(A) Coverage under a COBRA continuation provision (as 
        defined in section 9832(d)(1)).
            ``(B) State-based continuation coverage provided by the 
        State under a State law that requires such coverage.
            ``(C) Coverage offered through a qualified State high risk 
        pool (as defined in section 2744(c)(2) of the Public Health 
        Service Act).
            ``(D) Coverage under a health insurance program offered for 
        State employees.
            ``(E) Coverage under a State-based health insurance program 
        that is comparable to the health insurance program offered for 
        State employees.
            ``(F) Coverage through an arrangement entered into by a 
        State and--
                ``(i) a group health plan (including such a plan which 
            is a multiemployer plan as defined in section 3(37) of the 
            Employee Retirement Income Security Act of 1974),
                ``(ii) an issuer of health insurance coverage,
                ``(iii) an administrator, or
                ``(iv) an employer.
            ``(G) Coverage offered through a State arrangement with a 
        private sector health care coverage purchasing pool.
            ``(H) Coverage under a State-operated health plan that does 
        not receive any Federal financial participation.
            ``(I) Coverage under a group health plan that is available 
        through the employment of the eligible individual's spouse.
            ``(J) In the case of any eligible individual and such 
        individual's qualifying family members, coverage under 
        individual health insurance if the eligible individual was 
        covered under individual health insurance during the entire 30-
        day period that ends on the date that such individual became 
        separated from the employment which qualified such individual 
        for--
                ``(i) in the case of an eligible TAA recipient, the 
            allowance described in subsection (c)(2),
                ``(ii) in the case of an eligible alternative TAA 
            recipient, the benefit described in subsection (c)(3)(B), 
            or
                ``(iii) in the case of any eligible PBGC pension 
            recipient, the benefit described in subsection (c)(4)(B).
        For purposes of this subparagraph, the term `individual health 
        insurance' means any insurance which constitutes medical care 
        offered to individuals other than in connection with a group 
        health plan and does not include Federal- or State-based health 
        insurance coverage.
        ``(2) Requirements for state-based coverage.--
            ``(A) In general.--The term `qualified health insurance' 
        does not include any coverage described in subparagraphs (B) 
        through (H) of paragraph (1) unless the State involved has 
        elected to have such coverage treated as qualified health 
        insurance under this section and such coverage meets the 
        following requirements:
                ``(i) Guaranteed issue.--Each qualifying individual is 
            guaranteed enrollment if the individual pays the premium 
            for enrollment or provides a qualified health insurance 
            costs credit eligibility certificate described in section 
            7527 and pays the remainder of such premium.
                ``(ii) No imposition of preexisting condition 
            exclusion.--No pre-existing condition limitations are 
            imposed with respect to any qualifying individual.
                ``(iii) Nondiscriminatory premium.--The total premium 
            (as determined without regard to any subsidies) with 
            respect to a qualifying individual may not be greater than 
            the total premium (as so determined) for a similarly 
            situated individual who is not a qualifying individual.
                ``(iv) Same benefits.--Benefits under the coverage are 
            the same as (or substantially similar to) the benefits 
            provided to similarly situated individuals who are not 
            qualifying individuals.
            ``(B) Qualifying individual.--For purposes of this 
        paragraph, the term `qualifying individual' means--
                ``(i) an eligible individual for whom, as of the date 
            on which the individual seeks to enroll in the coverage 
            described in subparagraphs (B) through (H) of paragraph 
            (1), the aggregate of the periods of creditable coverage 
            (as defined in section 9801(c)) is 3 months or longer and 
            who, with respect to any month, meets the requirements of 
            clauses (iii) and (iv) of subsection (b)(1)(A); and
                ``(ii) the qualifying family members of such eligible 
            individual.
        ``(3) Exception.--The term `qualified health insurance' shall 
    not include--
            ``(A) a flexible spending or similar arrangement, and
            ``(B) any insurance if substantially all of its coverage is 
        of excepted benefits described in section 9832(c).
    ``(f) Other Specified Coverage.--For purposes of this section, an 
individual has other specified coverage for any month if, as of the 
first day of such month--
        ``(1) Subsidized coverage.--
            ``(A) In general.--Such individual is covered under any 
        insurance which constitutes medical care (except insurance 
        substantially all of the coverage of which is of excepted 
        benefits described in section 9832(c)) under any health plan 
        maintained by any employer (or former employer) of the taxpayer 
        or the taxpayer's spouse and at least 50 percent of the cost of 
        such coverage (determined under section 4980B) is paid or 
        incurred by the employer.
            ``(B) Eligible alternative taa recipients.--In the case of 
        an eligible alternative TAA recipient, such individual is 
        either--
                ``(i) eligible for coverage under any qualified health 
            insurance (other than insurance described in subparagraph 
            (A), (B), or (F) of subsection (e)(1)) under which at least 
            50 percent of the cost of coverage (determined under 
            section 4980B(f)(4)) is paid or incurred by an employer (or 
            former employer) of the taxpayer or the taxpayer's spouse, 
            or
                ``(ii) covered under any such qualified health 
            insurance under which any portion of the cost of coverage 
            (as so determined) is paid or incurred by an employer (or 
            former employer) of the taxpayer or the taxpayer's spouse.
            ``(C) Treatment of cafeteria plans.--For purposes of 
        subparagraphs (A) and (B), the cost of coverage shall be 
        treated as paid or incurred by an employer to the extent the 
        coverage is in lieu of a right to receive cash or other 
        qualified benefits under a cafeteria plan (as defined in 
        section 125(d)).
        ``(2) Coverage under medicare, medicaid, or schip.--Such 
    individual--
            ``(A) 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
            ``(B) is enrolled in the program under title XIX or XXI of 
        such Act (other than under section 1928 of such Act).
        ``(3) Certain other coverage.--Such individual--
            ``(A) is enrolled in a health benefits plan under chapter 
        89 of title 5, United States Code, or
            ``(B) is entitled to receive benefits under chapter 55 of 
        title 10, United States Code.
    ``(g) Special Rules.--
        ``(1) Coordination with advance payments of credit.--With 
    respect to any taxable year, the amount which would (but for this 
    subsection) be allowed as a credit to the taxpayer under subsection 
    (a) shall be reduced (but not below zero) by the aggregate amount 
    paid on behalf of such taxpayer under section 7527 for months 
    beginning in such taxable year.
        ``(2) 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.
        ``(3) MSA distributions.--Amounts distributed from an Archer 
    MSA (as defined in section 220(d)) shall not be taken into account 
    under subsection (a).
        ``(4) 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.
        ``(5) Both spouses eligible individuals.--The spouse of the 
    taxpayer shall not be treated as a qualifying family member for 
    purposes of subsection (a), if--
            ``(A) the taxpayer is married at the close of the taxable 
        year,
            ``(B) the taxpayer and the taxpayer's spouse are both 
        eligible individuals during the taxable year, and
            ``(C) the taxpayer files a separate return for the taxable 
        year.
        ``(6) Marital status; certain married individuals living 
    apart.--Rules similar to the rules of paragraphs (3) and (4) of 
    section 21(e) shall apply for purposes of this section.
        ``(7) Insurance which covers other individuals.--For purposes 
    of this section, rules similar to the rules of section 213(d)(6) 
    shall apply with respect to any contract for qualified health 
    insurance under which amounts are payable for coverage of an 
    individual other than the taxpayer and qualifying family members.
        ``(8) Treatment of payments.--For purposes of this section--
            ``(A) Payments by secretary.--Payments made by the 
        Secretary on behalf of any individual under section 7527 
        (relating to advance payment of credit for health insurance 
        costs of eligible individuals) shall be treated as having been 
        made by the taxpayer on the first day of the month for which 
        such payment was made.
            ``(B) Payments by taxpayer.--Payments made by the taxpayer 
        for eligible coverage months shall be treated as having been 
        made by the taxpayer on the first day of the month for which 
        such payment was made.
        ``(9) Regulations.--The Secretary may prescribe such 
    regulations and other guidance as may be necessary or appropriate 
    to carry out this section, section 6050T, and section 7527.''.
    (b) Promotion of State High Risk Pools.--Title XXVII of the Public 
Health Service Act is amended by inserting after section 2744 the 
following new section:

``SEC. 2745. PROMOTION OF QUALIFIED HIGH RISK POOLS.

    ``(a) Seed Grants to States.--The Secretary shall provide from the 
funds appropriated under subsection (c)(1) a grant of up to $1,000,000 
to each State that has not created a qualified high risk pool as of the 
date of the enactment of this section for the State's costs of creation 
and initial operation of such a pool.
    ``(b) Matching Funds for Operation of Pools.--
        ``(1) In general.--In the case of a State that has established 
    a qualified high risk pool that--
            ``(A) restricts premiums charged under the pool to no more 
        than 150 percent of the premium for applicable standard risk 
        rates;
            ``(B) offers a choice of two or more coverage options 
        through the pool; and
            ``(C) has in effect a mechanism reasonably designed to 
        ensure continued funding of losses incurred by the State after 
        the end of fiscal year 2004 in connection with operation of the 
        pool;
    the Secretary shall provide, from the funds appropriated under 
    subsection (c)(2) and allotted to the State under paragraph (2), a 
    grant of up to 50 percent of the losses incurred by the State in 
    connection with the operation of the pool.
        ``(2) Allotment.--The amounts appropriated under subsection 
    (c)(2) for a fiscal year shall be made available to the States in 
    accordance with a formula that is based upon the number of 
    uninsured individuals in the States.
    ``(c) Funding.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are authorized and 
appropriated--
        ``(1) $20,000,000 for fiscal year 2003 to carry out subsection 
    (a); and
        ``(2) $40,000,000 for each of fiscal years 2003 and 2004 to 
    carry out subsection (b).
Funds appropriated under this subsection for a fiscal year shall remain 
available for obligation through the end of the following fiscal year. 
Nothing in this section shall be construed as providing a State with an 
entitlement to a grant under this section.
    ``(d) Qualified High Risk Pool and State Defined.--For purposes of 
this section, the term `qualified high risk pool' has the meaning given 
such term in section 2744(c)(2) and the term `State' means any of the 
50 States and the District of Columbia.''.
    (c) 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 
    35 of such Code''.
        (2) The table of sections for subpart C of part IV of chapter 1 
    of the Internal Revenue Code of 1986 is amended by striking the 
    last item and inserting the following new items:
        ``Sec. 35. Health insurance costs of eligible individuals.
        ``Sec. 36. Overpayments of tax.''.

    (d) Effective Date.--
        (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.
        (2) State high risk pools.--The amendment made by subsection 
    (b) shall take effect on the date of the enactment of this Act.

SEC. 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF 
              ELIGIBLE INDIVIDUALS.

    (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 CREDIT FOR HEALTH INSURANCE COSTS OF 
              ELIGIBLE INDIVIDUALS.

    ``(a) General Rule.--Not later than August 1, 2003, the Secretary 
shall establish a program for making payments on behalf of certified 
individuals to providers of qualified health insurance (as defined in 
section 35(e)) for such individuals.
    ``(b) Limitation on Advance Payments During any Taxable Year.--The 
Secretary may make payments under subsection (a) only to the extent 
that the total amount of such payments made on behalf of any individual 
during the taxable year does not exceed 65 percent of the amount paid 
by the taxpayer for coverage of the taxpayer and qualifying family 
members under qualified health insurance for eligible coverage months 
beginning in the taxable year.
    ``(c) Certified Individual.--For purposes of this section, the term 
`certified individual' means any individual for whom a qualified health 
insurance costs credit eligibility certificate is in effect.
    ``(d) Qualified Health Insurance Costs Credit Eligibility 
Certificate.--For purposes of this section, the term `qualified health 
insurance costs credit eligibility certificate' means any written 
statement that an individual is an eligible individual (as defined in 
section 35(c)) if such statement provides such information as the 
Secretary may require for purposes of this section and--
        ``(1) in the case of an eligible TAA recipient (as defined in 
    section 35(c)(2)) or an eligible alternative TAA recipient (as 
    defined in section 35(c)(3)), is certified by the Secretary of 
    Labor (or by any other person or entity designated by the 
    Secretary), or
        ``(2) in the case of an eligible PBGC pension recipient (as 
    defined in section 35(c)(4)), is certified by the Pension Benefit 
    Guaranty Corporation (or by any other person or entity designated 
    by the Secretary).''.
    (b) Disclosure of Return Information for Purposes of Carrying out a 
Program for Advance Payment of Credit for Health Insurance Costs of 
Eligible Individuals.--
        (1) In general.--Subsection (l) of section 6103 of such Code 
    (relating to disclosure of returns and return information for 
    purposes other than tax administration) is amended by adding at the 
    end the following new paragraph:
        ``(18) Disclosure of return information for purposes of 
    carrying out a program for advance payment of credit for health 
    insurance costs of eligible individuals.--The Secretary may 
    disclose to providers of health insurance for any certified 
    individual (as defined in section 7527(c)) return information with 
    respect to such certified individual only to the extent necessary 
    to carry out the program established by section 7527 (relating to 
    advance payment of credit for health insurance costs of eligible 
    individuals).''.
        (2) Procedures and recordkeeping related to disclosures.--
    Subsection (p) of such section is amended--
            (A) in paragraph (3)(A) by striking ``or (17)'' and 
        inserting ``(17), or (18)'', and
            (B) in paragraph (4) by inserting ``or (17)'' after ``any 
        other person described in subsection (l)(16)'' each place it 
        appears.
        (3) Unauthorized inspection of returns or return information.--
    Section 7213A(a)(1)(B) of such Code is amended by striking 
    ``section 6103(n)'' and inserting ``subsection (l)(18) or (n) of 
    section 6103''.
    (c) 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 CREDIT FOR HEALTH INSURANCE COSTS OF 
              ELIGIBLE INDIVIDUALS.

    ``(a) Requirement of Reporting.--Every person who is entitled to 
receive payments for any month of any calendar year under section 7527 
(relating to advance payment of credit for health insurance costs of 
eligible individuals) with respect to any certified individual (as 
defined in section 7527(c)) shall, at such time as the Secretary may 
prescribe, make the return described in subsection (b) with respect to 
each such individual.
    ``(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 number of months for which amounts were entitled 
        to be received with respect to such individual under section 
        7527 (relating to advance payment of credit for health 
        insurance costs of eligible individuals),
            ``(C) the amount entitled to be received for each such 
        month, 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.''.
        (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 
            credit for health insurance costs of eligible 
            individuals),''.
            (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 
        credit for health insurance costs of eligible individuals).''.
    (d) Clerical Amendments.--
        (1) Advance payment.--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 credit for health insurance 
                  costs of eligible individuals.''.

        (2) Information reporting.--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 credit for health insurance 
                  costs of eligible individuals.''.

    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 203. HEALTH INSURANCE ASSISTANCE 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 or entity (as defined in section 
        173(c)(1)(B)) to carry out subsection (f), including providing 
        assistance to eligible individuals; and
            ``(B) to a State or entity (as so defined) to carry out 
        subsection (g), including providing assistance to eligible 
        individuals.''.
    (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 
Individuals.--
        ``(1) In general.--Funds made available to a State or entity 
    under paragraph (4)(A) of subsection (a) may be used by the State 
    or entity for the following:
            ``(A) Health insurance coverage.--To assist an eligible 
        individual and such individual's qualifying family members in 
        enrolling in qualified health insurance.
            ``(B) Administrative and start-up expenses.--To pay the 
        administrative expenses related to the enrollment of eligible 
        individuals and such individuals' qualifying family members in 
        qualified health insurance, including--
                ``(i) eligibility verification activities;
                ``(ii) the notification of eligible individuals of 
            available qualified health insurance options;
                ``(iii) processing qualified health insurance costs 
            credit eligibility certificates provided for under section 
            7527 of the Internal Revenue Code of 1986;
                ``(iv) providing assistance to eligible individuals in 
            enrolling in qualified health insurance;
                ``(v) the development or installation of necessary data 
            management systems; and
                ``(vi) any other expenses determined appropriate by the 
            Secretary, including start-up costs and on going 
            administrative expenses to carry out clauses (iv) through 
            (ix) of paragraph (2)(A).
        ``(2) Qualified health insurance.--For purposes of this 
    subsection and subsection (g)--
            ``(A) In general.--The term `qualified health insurance' 
        means any of the following:
                ``(i) Coverage under a COBRA continuation provision (as 
            defined in section 733(d)(1) of the Employee Retirement 
            Income Security Act of 1974).
                ``(ii) State-based continuation coverage provided by 
            the State under a State law that requires such coverage.
                ``(iii) Coverage offered through a qualified State high 
            risk pool (as defined in section 2744(c)(2) of the Public 
            Health Service Act).
                ``(iv) Coverage under a health insurance program 
            offered for State employees.
                ``(v) Coverage under a State-based health insurance 
            program that is comparable to the health insurance program 
            offered for State employees.
                ``(vi) Coverage through an arrangement entered into by 
            a State and--

                    ``(I) a group health plan (including such a plan 
                which is a multiemployer plan as defined in section 
                3(37) of the Employee Retirement Income Security Act of 
                1974),
                    ``(II) an issuer of health insurance coverage,
                    ``(III) an administrator, or
                    ``(IV) an employer.

                ``(vii) Coverage offered through a State arrangement 
            with a private sector health care coverage purchasing pool.
                ``(viii) Coverage under a State-operated health plan 
            that does not receive any Federal financial participation.
                ``(ix) Coverage under a group health plan that is 
            available through the employment of the eligible 
            individual's spouse.
                ``(x) In the case of any eligible individual and such 
            individual's qualifying family members, coverage under 
            individual health insurance if the eligible individual was 
            covered under individual health insurance during the entire 
            30-day period that ends on the date that such individual 
            became separated from the employment which qualified such 
            individual for--

                    ``(I) in the case of an eligible TAA recipient, the 
                allowance described in section 35(c)(2) of the Internal 
                Revenue Code of 1986,
                    ``(II) in the case of an eligible alternative TAA 
                recipient, the benefit described in section 35(c)(3)(B) 
                of such Code, or
                    ``(III) in the case of any eligible PBGC pension 
                recipient, the benefit described in section 35(c)(4)(B) 
                of such Code.

            For purposes of this clause, the term `individual health 
            insurance' means any insurance which constitutes medical 
            care offered to individuals other than in connection with a 
            group health plan and does not include Federal- or State-
            based health insurance coverage.
            ``(B) Requirements for state-based coverage.--
                ``(i) In general.--The term `qualified health 
            insurance' does not include any coverage described in 
            clauses (ii) through (viii) of subparagraph (A) unless the 
            State involved has elected to have such coverage treated as 
            qualified health insurance under this paragraph and such 
            coverage meets the following requirements:

                    ``(I) Guaranteed issue.--Each qualifying individual 
                is guaranteed enrollment if the individual pays the 
                premium for enrollment or provides a qualified health 
                insurance costs credit eligibility certificate 
                described in section 7527 of the Internal Revenue Code 
                of 1986 and pays the remainder of such premium.
                    ``(II) No imposition of preexisting condition 
                exclusion.--No pre-existing condition limitations are 
                imposed with respect to any qualifying individual.
                    ``(III) Nondiscriminatory premium.--The total 
                premium (as determined without regard to any subsidies) 
                with respect to a qualifying individual may not be 
                greater than the total premium (as so determined) for a 
                similarly situated individual who is not a qualifying 
                individual.
                    ``(IV) Same benefits.--Benefits under the coverage 
                are the same as (or substantially similar to) the 
                benefits provided to similarly situated individuals who 
                are not qualifying individuals.

                ``(ii) Qualifying individual.--For purposes of this 
            subparagraph, the term `qualifying individual' means--

                    ``(I) an eligible individual for whom, as of the 
                date on which the individual seeks to enroll in clauses 
                (ii) through (viii) of subparagraph (A), the aggregate 
                of the periods of creditable coverage (as defined in 
                section 9801(c) of the Internal Revenue Code of 1986) 
                is 3 months or longer and who, with respect to any 
                month, meets the requirements of clauses (iii) and (iv) 
                of section 35(b)(1)(A) of such Code; and
                    ``(II) the qualifying family members of such 
                eligible individual.

            ``(C) Exception.--The term `qualified health insurance' 
        shall not include--
                ``(i) a flexible spending or similar arrangement, and
                ``(ii) any insurance if substantially all of its 
            coverage is of excepted benefits described in section 
            733(c) of the Employee Retirement Income Security Act of 
            1974.
        ``(3) Availability of funds.--
            ``(A) Expedited procedures.--With respect to applications 
        submitted by States or entities 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 
            or entity, notify the State or entity of the determination 
            of the Secretary with respect to the approval or 
            disapproval of such application;
                ``(ii) in the case of an application of a State or 
            other entity that is disapproved by the Secretary, provide 
            technical assistance, at the request of the State or 
            entity, in a timely manner to enable the State or entity to 
            submit an approved application; and
                ``(iii) develop procedures to expedite the provision of 
            funds to States and entities 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 and entities throughout the period described in section 
        174(c)(2)(A).
        ``(4) Eligible individual defined.--For purposes of this 
    subsection and subsection (g), the term `eligible individual' 
    means--
          ``(A) an eligible TAA recipient (as defined in section 
        35(c)(2) of the Internal Revenue Code of 1986),
            ``(B) an eligible alternative TAA recipient (as defined in 
        section 35(c)(3) of the Internal Revenue Code of 1986), and
            ``(C) an eligible PBGC pension recipient (as defined in 
        section 35(c)(4) of the Internal Revenue Code of 1986),
    who, as of the first day of the month, does not have other 
    specified coverage and is not imprisoned under Federal, State, or 
    local authority.
        ``(5) Qualifying family member defined.--For purposes of this 
    subsection and subsection (g)--
            ``(A) In general.--The term `qualifying family member' 
        means--
                ``(i) the eligible individual's spouse, and
                ``(ii) any dependent of the eligible individual with 
            respect to whom the individual is entitled to a deduction 
            under section 151(c) of the Internal Revenue Code of 1986.
        Such term does not include any individual who has other 
        specified coverage.
            ``(B) Special dependency test in case of divorced parents, 
        etc.--If paragraph (2) or (4) of section 152(e) of such Code 
        applies to any child with respect to any calendar year, in the 
        case of any taxable year beginning in such calendar year, such 
        child shall be treated as described in subparagraph (A)(ii) 
        with respect to the custodial parent (within the meaning of 
        section 152(e)(1) of such Code) and not with respect to the 
        noncustodial parent.
        ``(6) State.--For purposes of this subsection and subsection 
    (g), the term `State' includes an entity as defined in subsection 
    (c)(1)(B).
        ``(7) 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 
            insurance which constitutes medical care (except insurance 
            substantially all of the coverage of which is of excepted 
            benefits described in section 9832(c) of the Internal 
            Revenue Code of 1986) under any health plan maintained by 
            any employer (or former employer) of the taxpayer or the 
            taxpayer's spouse and at least 50 percent of the cost of 
            such coverage (determined under section 4980B of such Code) 
            is paid or incurred by the employer.
                ``(ii) Eligible alternative taa recipients.--In the 
            case of an eligible alternative TAA recipient (as defined 
            in section 35(c)(3) of the Internal Revenue Code of 1986), 
            such individual is either--

                    ``(I) eligible for coverage under any qualified 
                health insurance (other than insurance described in 
                clause (i), (ii), or (vi) of paragraph (2)(A)) under 
                which at least 50 percent of the cost of coverage 
                (determined under section 4980B(f)(4) of such Code) is 
                paid or incurred by an employer (or former employer) of 
                the taxpayer or the taxpayer's spouse, or
                    ``(II) covered under any such qualified health 
                insurance under which any portion of the cost of 
                coverage (as so determined) is paid or incurred by an 
                employer (or former employer) of the taxpayer or the 
                taxpayer's spouse.

                ``(iii) Treatment of cafeteria plans.--For purposes of 
            clauses (i) and (ii), the cost of coverage shall be treated 
            as paid or incurred by an employer to the extent the 
            coverage is in lieu of a right to receive cash or other 
            qualified benefits under a cafeteria plan (as defined in 
            section 125(d) of the Internal Revenue Code of 1986).
            ``(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 of such 
            Act).
            ``(C) Certain other coverage.--Such individual--
                ``(i) is enrolled in a health benefits plan under 
            chapter 89 of title 5, United States Code, or
                ``(ii) is entitled to receive benefits under chapter 55 
            of title 10, United States Code.
    ``(g) Interim Health Insurance Coverage and Other Assistance.--
        ``(1) In general.--Funds made available to a State or entity 
    under paragraph (4)(B) of subsection (a) may be used by the State 
    or entity to provide assistance and support services to eligible 
    individuals, including health care coverage to the extent provided 
    under subsection (f)(1)(A), transportation, child care, dependent 
    care, and income assistance.
        ``(2) Income support.--With respect to any income assistance 
    provided to an eligible individual 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 Act of 2002) or the unemployment 
    compensation laws of the State where the eligible individual 
    resides.
        ``(3) Health insurance coverage.--With respect to any 
    assistance provided to an eligible individual with such funds in 
    enrolling in qualified health insurance, the following rules shall 
    apply:
            ``(A) The State or entity may provide assistance in 
        obtaining such coverage to the eligible individual and to such 
        individual's qualifying family members.
            ``(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 or entities 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 
            or entity, notify the State or entity of the determination 
            of the Secretary with respect to the approval or 
            disapproval of such application;
                ``(ii) in the case of an application of a State or 
            entity that is disapproved by the Secretary, provide 
            technical assistance, at the request of the State or 
            entity, in a timely manner to enable the State or entity to 
            submit an approved application; and
                ``(iii) develop procedures to expedite the provision of 
            funds to States and entities 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 and entities throughout the period described in section 
        174(c)(2)(B).
        ``(5) Inclusion of certain individuals as eligible 
    individuals.--For purposes of this subsection, the term `eligible 
    individual' includes 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 Act of 2002) and is participating in 
    the trade adjustment allowance program under such chapter (as so in 
    effect) or who would be determined to be participating in such 
    program under such chapter (as so in effect) if such chapter were 
    applied without regard to section 231(a)(3)(B) of the Trade Act of 
    1974 (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) Authorization and appropriation for fiscal year 2002.--
    There are authorized to be appropriated and appropriated--
            ``(A) to carry out subsection (a)(4)(A) of section 173, 
        $10,000,000 for fiscal year 2002; and
            ``(B) to carry out subsection (a)(4)(B) of section 173, 
        $50,000,000 for fiscal year 2002.
        ``(2) Authorization of appropriations for subsequent fiscal 
    years.--There are authorized to be appropriated--
            ``(A) to carry out subsection (a)(4)(A) of section 173, 
        $60,000,000 for each of fiscal years 2003 through 2007; and
            ``(B) to carry out subsection (a)(4)(B) of section 173--
                ``(i) $100,000,000 for fiscal year 2003; and
                ``(ii) $50,000,000 for fiscal year 2004.
        ``(3) Availability of funds.--Funds appropriated pursuant to--
            ``(A) paragraphs (1)(A) and (2)(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 Act of 2002; and
            ``(B) paragraph (1)(B) and (2)(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 
        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) ERISA amendments.--Section 605 of the Employee Retirement 
    Income Security Act of 1974 (29 U.S.C. 1165) is amended--
            (A) by inserting ``(a) In General.--'' before ``For 
        purposes of this part''; and
            (B) by adding at the end the following:
    ``(b) Temporary Extension of COBRA Election Period for Certain 
Individuals.--
        ``(1) In general.--In the case of a nonelecting TAA-eligible 
    individual and notwithstanding subsection (a), such individual may 
    elect continuation coverage under this part during the 60-day 
    period that begins on the first day of the month in which the 
    individual becomes a TAA-eligible individual, but only if such 
    election is made not later than 6 months after the date of the TAA-
    related loss of coverage.
        ``(2) Commencement of coverage; no reach-back.--Any 
    continuation coverage elected by a TAA-eligible individual under 
    paragraph (1) shall commence at the beginning of the 60-day 
    election period described in such paragraph and shall not include 
    any period prior to such 60-day election period.
        ``(3) Preexisting conditions.--With respect to an individual 
    who elects continuation coverage pursuant to paragraph (1), the 
    period--
            ``(A) beginning on the date of the TAA-related loss of 
        coverage, and
            ``(B) ending on the first day of the 60-day election period 
        described in paragraph (1),
    shall be disregarded for purposes of determining the 63-day periods 
    referred to in section 701(c)(2), section 2701(c)(2) of the Public 
    Health Service Act, and section 9801(c)(2) of the Internal Revenue 
    Code of 1986.
        ``(4) Definitions.--For purposes of this subsection:
            ``(A) Nonelecting taa-eligible individual.--The term 
        `nonelecting TAA-eligible individual' means a TAA-eligible 
        individual who--
                ``(i) has a TAA-related loss of coverage; and
                ``(ii) did not elect continuation coverage under this 
            part during the TAA-related election period.
            ``(B) TAA-eligible individual.--The term `TAA-eligible 
        individual' means--
                ``(i) an eligible TAA recipient (as defined in 
            paragraph (2) of section 35(c) of the Internal Revenue Code 
            of 1986), and
                ``(ii) an eligible alternative TAA recipient (as 
            defined in paragraph (3) of such section).
            ``(C) TAA-related election period.--The term `TAA-related 
        election period' means, with respect to a TAA-related loss of 
        coverage, the 60-day election period under this part which is a 
        direct consequence of such loss.
            ``(D) TAA-related loss of coverage.--The term `TAA-related 
        loss of coverage' means, with respect to an individual whose 
        separation from employment gives rise to being an TAA-eligible 
        individual, the loss of health benefits coverage associated 
        with such separation.''.
        (2) PHSA amendments.--Section 2205 of the Public Health Service 
    Act (42 U.S.C. 300bb-5) is amended--
            (A) by inserting ``(a) In General.--'' before ``For 
        purposes of this title''; and
            (B) by adding at the end the following:
    ``(b) Temporary Extension of COBRA Election Period for Certain 
Individuals.--
        ``(1) In general.--In the case of a nonelecting TAA-eligible 
    individual and notwithstanding subsection (a), such individual may 
    elect continuation coverage under this title during the 60-day 
    period that begins on the first day of the month in which the 
    individual becomes a TAA-eligible individual, but only if such 
    election is made not later than 6 months after the date of the TAA-
    related loss of coverage.
        ``(2) Commencement of coverage; no reach-back.--Any 
    continuation coverage elected by a TAA-eligible individual under 
    paragraph (1) shall commence at the beginning of the 60-day 
    election period described in such paragraph and shall not include 
    any period prior to such 60-day election period.
        ``(3) Preexisting conditions.--With respect to an individual 
    who elects continuation coverage pursuant to paragraph (1), the 
    period--
            ``(A) beginning on the date of the TAA-related loss of 
        coverage, and
            ``(B) ending on the first day of the 60-day election period 
        described in paragraph (1),
    shall be disregarded for purposes of determining the 63-day periods 
    referred to in section 2701(c)(2), section 701(c)(2) of the 
    Employee Retirement Income Security Act of 1974, and section 
    9801(c)(2) of the Internal Revenue Code of 1986.
        ``(4) Definitions.--For purposes of this subsection:
            ``(A) Nonelecting taa-eligible individual.--The term 
        `nonelecting TAA-eligible individual' means a TAA-eligible 
        individual who--
                ``(i) has a TAA-related loss of coverage; and
                ``(ii) did not elect continuation coverage under this 
            part during the TAA-related election period.
            ``(B) TAA-eligible individual.--The term `TAA-eligible 
        individual' means--
                ``(i) an eligible TAA recipient (as defined in 
            paragraph (2) of section 35(c) of the Internal Revenue Code 
            of 1986), and
                ``(ii) an eligible alternative TAA recipient (as 
            defined in paragraph (3) of such section).
            ``(C) TAA-related election period.--The term `TAA-related 
        election period' means, with respect to a TAA-related loss of 
        coverage, the 60-day election period under this part which is a 
        direct consequence of such loss.
            ``(D) TAA-related loss of coverage.--The term `TAA-related 
        loss of coverage' means, with respect to an individual whose 
        separation from employment gives rise to being an TAA-eligible 
        individual, the loss of health benefits coverage associated 
        with such separation.''.
        (3) IRC amendments.--Paragraph (5) of section 4980B(f) of the 
    Internal Revenue Code of 1986 (relating to election) is amended by 
    adding at the end the following:
            ``(C) Temporary extension of cobra election period for 
        certain individuals.--
                ``(i) In general.--In the case of a nonelecting TAA-
            eligible individual and notwithstanding subparagraph (A), 
            such individual may elect continuation coverage under this 
            subsection during the 60-day period that begins on the 
            first day of the month in which the individual becomes a 
            TAA-eligible individual, but only if such election is made 
            not later than 6 months after the date of the TAA-related 
            loss of coverage.
                ``(ii) Commencement of coverage; no reach-back.--Any 
            continuation coverage elected by a TAA-eligible individual 
            under clause (i) shall commence at the beginning of the 60-
            day election period described in such paragraph and shall 
            not include any period prior to such 60-day election 
            period.
                ``(iii) Preexisting conditions.--With respect to an 
            individual who elects continuation coverage pursuant to 
            clause (i), the period--

                    ``(I) beginning on the date of the TAA-related loss 
                of coverage, and
                    ``(II) ending on the first day of the 60-day 
                election period described in clause (i),

            shall be disregarded for purposes of determining the 63-day 
            periods referred to in section 9801(c)(2), section 
            701(c)(2) of the Employee Retirement Income Security Act of 
            1974, and section 2701(c)(2) of the Public Health Service 
            Act.
                ``(iv) Definitions.--For purposes of this subsection:

                    ``(I) Nonelecting taa-eligible individual.--The 
                term `nonelecting TAA-eligible individual' means a TAA-
                eligible individual who has a TAA-related loss of 
                coverage and did not elect continuation coverage under 
                this subsection during the TAA-related election period.
                    ``(II) TAA-eligible individual.--The term `TAA-
                eligible individual' means an eligible TAA recipient 
                (as defined in paragraph (2) of section 35(c)) and an 
                eligible alternative TAA recipient (as defined in 
                paragraph (3) of such section).
                    ``(III) TAA-related election period.--The term 
                `TAA-related election period' means, with respect to a 
                TAA-related loss of coverage, the 60-day election 
                period under this subsection which is a direct 
                consequence of such loss.
                    ``(IV) TAA-related loss of coverage.--The term 
                `TAA-related loss of coverage' means, with respect to 
                an individual whose separation from employment gives 
                rise to being an TAA-eligible individual, the loss of 
                health benefits coverage associated with such 
                separation.''.

    (f) Rule of Construction.--Nothing in this title (or the amendments 
made by this title), other than provisions relating to COBRA 
continuation coverage and reporting requirements, shall be construed as 
creating any new mandate on any party regarding health insurance 
coverage.

                   TITLE III--CUSTOMS REAUTHORIZATION

SEC. 301. SHORT TITLE.

    This Act 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. 311. 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) by striking subparagraph (A), and inserting the following:
            ``(A) $1,365,456,000 for fiscal year 2003.''; and
        (2) by striking subparagraph (B), and inserting the following:
            ``(B) $1,399,592,400 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) by striking clause (i), and inserting the following:
            ``(i) $1,642,602,000 for fiscal year 2003.''; and
            (B) by striking clause (ii), and inserting the following:
            ``(ii) $1,683,667,050 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 the 
    enactment of this Act, and not later than the end of 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 Agreement 
    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) by striking subparagraph (A), and inserting the following:
            ``(A) $170,829,000 for fiscal year 2003.''; and
        (2) by striking subparagraph (B), and inserting the following:
            ``(B) $175,099,725 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. 312. 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 311(a) of this Act, $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 311(a) of this Act, $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 311(a) of this Act, 
    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. 313. 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 and performance indicators, and shall 
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 section 312.

     CHAPTER 2--CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE

SEC. 321. 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. 331. 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 
311 of this Act, $28,300,000 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. 332. 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 the 
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. 333. 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 the 
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. 334. 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 the 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. 335. 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 the 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. 336. 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 the 
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. 337. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER FACILITIES.

    (a) In General.--Section 13031(b)(9) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is amended as 
follows:
        (1) In subparagraph (A)--
            (A) in the matter preceding clause (i), by striking ``the 
        processing of merchandise that is informally entered or 
        released'' and inserting ``the processing of letters, 
        documents, records, shipments, merchandise, or any other item 
        that is valued at an amount that is less than $2,000 (or such 
        higher amount as the Secretary of the Treasury may set by 
        regulation pursuant to section 498 of the Tariff Act of 1930), 
        except such items entered for transportation and exportation or 
        immediate exportation''; and
            (B) by striking clause (ii), and inserting the following:
                ``(ii) Subject to the provisions of subparagraph (B), 
            in the case of an express consignment carrier facility or 
            centralized hub facility, $.66 per individual airway bill 
            or bill of lading.''.
        (2) By redesignating subparagraph (B) as subparagraph (C) and 
    inserting after subparagraph (A) the following:
            ``(B)(i) Beginning in fiscal year 2004, the Secretary of 
        the Treasury may adjust (not more than once per fiscal year) 
        the amount described in subparagraph (A)(ii) to an amount that 
        is not less than $.35 and not more than $1.00 per individual 
        airway bill or bill of lading. The Secretary shall provide 
        notice in the Federal Register of a proposed adjustment under 
        the preceding sentence and the reasons therefor and shall allow 
        for public comment on the proposed adjustment.
            ``(ii) Notwithstanding section 451 of the Tariff Act of 
        1930, the payment required by subparagraph (A)(ii) shall be the 
        only payment required for reimbursement of the Customs Service 
        in connection with the processing of an individual airway bill 
        or bill of lading in accordance with such subparagraph and for 
        providing services at express consignment carrier facilities or 
        centralized hub facilities, except that the Customs Service may 
        require such facilities to cover expenses of the Customs 
        Service for adequate office space, equipment, furnishings, 
        supplies, and security.
            ``(iii)(I) The payment required by subparagraph (A)(ii) and 
        clause (ii) of this subparagraph shall be paid on a quarterly 
        basis by the carrier using the facility to the Customs Service 
        in accordance with regulations prescribed by the Secretary of 
        the Treasury.
            ``(II) 50 percent of the amount of payments received under 
        subparagraph (A)(ii) and clause (ii) of this subparagraph 
        shall, in accordance with section 524 of the Tariff Act of 
        1930, be deposited in the Customs User Fee Account and shall be 
        used to directly reimburse each appropriation for the amount 
        paid out of that appropriation for the costs incurred in 
        providing services to express consignment carrier facilities or 
        centralized hub facilities. Amounts deposited in accordance 
        with the preceding sentence shall be available until expended 
        for the provision of customs services to express consignment 
        carrier facilities or centralized hub facilities.
            ``(III) Notwithstanding section 524 of the Tariff Act of 
        1930, the remaining 50 percent of the amount of payments 
        received under subparagraph (A)(ii) and clause (ii) of this 
        subparagraph shall be paid to the Secretary of the Treasury, 
        which is in lieu of the payment of fees under subsection 
        (a)(10) of this section.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on October 1, 2002.

SEC. 338. NATIONAL CUSTOMS AUTOMATION PROGRAM.

    Section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b)) is 
amended by striking the second sentence and inserting the following: 
``The Secretary may, by regulation, require the electronic submission 
of information described in subsection (a) or any other information 
required to be submitted to the Customs Service separately pursuant to 
this subpart.''.

SEC. 339. 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 such 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. 341. IMMUNITY FOR UNITED STATES OFFICIALS THAT ACT IN GOOD FAITH.

    (a) Immunity.--Section 3061 of the Revised Statutes (19 U.S.C. 482) 
is amended--
        (1) by striking ``Any of the officers'' and inserting ``(a) Any 
    of the officers''; and
        (2) by adding at the end the following:
    ``(b) Any officer or employee of the United States conducting a 
search of a person pursuant to subsection (a) shall not be held liable 
for any civil damages as a result of such search if the officer or 
employee performed the search in good faith and used reasonable means 
while effectuating such search.''.
    (b) Requirement To Post Policy and Procedures for Searches of 
Passengers.--Not later than 30 days after the date of the enactment of 
this Act, the Commissioner of Customs shall ensure that at each Customs 
border facility appropriate notice is posted that provides a summary of 
the policy and procedures of the Customs Service for searching 
passengers, including a statement of the policy relating to the 
prohibition on the conduct of profiling of passengers based on gender, 
race, color, religion, or ethnic background.

SEC. 342. 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 respond 
    directly 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. 343. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR CARGO AND OTHER 
              IMPROVED CUSTOMS REPORTING PROCEDURES.

    (a) Cargo Information.--
        (1) In general.--Subject to paragraphs (2) and (3), not later 
    than 1 year after the date of enactment of this Act, the Secretary 
    shall promulgate regulations providing for the transmission to the 
    Customs Service, through an electronic data interchange system, of 
    information pertaining to cargo destined for importation into the 
    United States or exportation from the United States, prior to such 
    importation or exportation.
        (2) Information required.--The information required by the 
    regulations promulgated pursuant to paragraph (1) under the 
    parameters set forth in paragraph (3) shall be such information as 
    the Secretary determines to be reasonably necessary to ensure 
    aviation, maritime, and surface transportation safety and security 
    pursuant to those laws enforced and administered by the Customs 
    Service.
        (3) Parameters.--In developing regulations pursuant to 
    paragraph (1), the Secretary shall adhere to the following 
    parameters:
            (A) The Secretary shall solicit comments from and consult 
        with a broad range of parties likely to be affected by the 
        regulations, including importers, exporters, carriers, customs 
        brokers, and freight forwarders, among other interested 
        parties.
            (B) In general, the requirement to provide particular 
        information shall be imposed on the party most likely to have 
        direct knowledge of that information. Where requiring 
        information from the party with direct knowledge of that 
        information is not practicable, the regulations shall take into 
        account how, under ordinary commercial practices, information 
        is acquired by the party on which the requirement is imposed, 
        and whether and how such party is able to verify the 
        information. Where information is not reasonably verifiable by 
        the party on which a requirement is imposed, the regulations 
        shall permit that party to transmit information on the basis of 
        what it reasonably believes to be true.
            (C) The Secretary shall take into account the existence of 
        competitive relationships among the parties on which 
        requirements to provide particular information are imposed.
            (D) Where the regulations impose requirements on carriers 
        of cargo, they shall take into account differences among 
        different modes of transportation, including differences in 
        commercial practices, operational characteristics, and 
        technological capacity to collect and transmit information 
        electronically.
            (E) The regulations shall take into account the extent to 
        which the technology necessary for parties to transmit and the 
        Customs Service to receive and analyze data in a timely fashion 
        is available. To the extent that the Secretary determines that 
        the necessary technology will not be widely available to 
        particular modes of transportation or other affected parties 
        until after promulgation of the regulations, the regulations 
        shall provide interim requirements appropriate for the 
        technology that is available at the time of promulgation.
            (F) The information collected pursuant to the regulations 
        shall be used exclusively for ensuring aviation, maritime, and 
        surface transportation safety and security, and shall not be 
        used for determining entry or for any other commercial 
        enforcement purposes.
            (G) The regulations shall protect the privacy of business 
        proprietary and any other confidential information provided to 
        the Customs Service. However, this parameter does not repeal, 
        amend, or otherwise modify other provisions of law relating to 
        the public disclosure of information transmitted to the Customs 
        Service.
            (H) In determining the timing for transmittal of any 
        information, the Secretary shall balance likely impact on flow 
        of commerce with impact on aviation, maritime, and surface 
        transportation safety and security. With respect to 
        requirements that may be imposed on carriers of cargo, the 
        timing for transmittal of information shall take into account 
        differences among different modes of transportation, as 
        described in subparagraph (D).
            (I) Where practicable, the regulations shall avoid imposing 
        requirements that are redundant with one another or that are 
        redundant with requirements in other provisions of law.
            (J) The Secretary shall determine whether it is appropriate 
        to provide transition periods between promulgation of the 
        regulations and the effective date of the regulations and shall 
        prescribe such transition periods in the regulations, as 
        appropriate. The Secretary may determine that different 
        transition periods are appropriate for different classes of 
        affected parties.
            (K) With respect to requirements imposed on carriers, the 
        Secretary, in consultation with the Postmaster General, shall 
        determine whether it is appropriate to impose the same or 
        similar requirements on shipments by the United States Postal 
        Service. If the Secretary determines that such requirements are 
        appropriate, then they shall be set forth in the regulations.
            (L) Not later than 60 days prior to promulgation of the 
        regulations, the Secretary shall transmit to the Committees on 
        Finance and Commerce, Science, and Transportation of the Senate 
        and the Committees on Ways and Means and Transportation and 
        Infrastructure of the House of Representatives a report setting 
        forth--
                (i) the proposed regulations;
                (ii) an explanation of how particular requirements in 
            the proposed regulations meet the needs of aviation, 
            maritime, and surface transportation safety and security;
                (iii) an explanation of how the Secretary expects the 
            proposed regulations to affect the commercial practices of 
            affected parties; and
                (iv) an explanation of how the proposed regulations 
            address particular comments received from interested 
            parties.
    (b) Documentation of Waterborne Cargo.--Part II of title IV of the 
Tariff Act of 1930 is amended by inserting after section 431 the 
following new section:

``SEC. 431A. DOCUMENTATION OF WATERBORNE CARGO.

    ``(a) Applicability.--This section shall apply to all cargo to be 
exported that is moved by a vessel carrier from a port in the United 
States.
    ``(b) Documentation Required.--(1) No shipper of cargo subject to 
this section (including an ocean transportation intermediary that is a 
non-vessel-operating common carrier (as defined in section 3(17)(B) of 
the Shipping Act of 1984 (46 U.S.C. App. 1702(17)(B)) may tender or 
cause to be tendered to a vessel carrier cargo subject to this section 
for loading on a vessel in a United States port, unless such cargo is 
properly documented pursuant to this subsection.
    ``(2) For the purposes of this subsection, cargo shall be 
considered properly documented if the shipper submits to the vessel 
carrier or its agent a complete set of shipping documents no later than 
24 hours after the cargo is delivered to the marine terminal operator, 
but under no circumstances later than 24 hours prior to departure of 
the vessel.
    ``(3) A complete set of shipping documents shall include--
        ``(A) for shipments for which a shipper's export declaration is 
    required, a copy of the export declaration or, if the shipper files 
    such declarations electronically in the Automated Export System, 
    the complete bill of lading, and the master or equivalent shipping 
    instructions, including the Internal Transaction Number (ITN); or
        ``(B) for shipments for which a shipper's export declaration is 
    not required, a shipper's export declaration exemption statement 
    and such other documents or information as the Secretary may by 
    regulation prescribe.
    ``(4) The Secretary shall by regulation prescribe the time, manner, 
and form by which shippers shall transmit documents or information 
required under this subsection to the Customs Service.
    ``(c) Loading Undocumented Cargo Prohibited.--
        ``(1) No marine terminal operator (as defined in section 3(14) 
    of the Shipping Act of 1984 (46 U.S.C. App. 1702(14))) may load, or 
    cause to be loaded, any cargo subject to this section on a vessel 
    unless instructed by the vessel carrier operating the vessel that 
    such cargo has been properly documented in accordance with this 
    section.
        ``(2) When cargo is booked by 1 vessel carrier to be 
    transported on the vessel of another vessel carrier, the booking 
    carrier shall notify the operator of the vessel that the cargo has 
    been properly documented in accordance with this section. The 
    operator of the vessel may rely on such notification in releasing 
    the cargo for loading aboard the vessel.
    ``(d) Reporting of Undocumented Cargo.--A vessel carrier shall 
notify the Customs Service of any cargo tendered to such carrier that 
is not properly documented pursuant to this section and that has 
remained in the marine terminal for more than 48 hours after being 
delivered to the marine terminal, and the location of the cargo in the 
marine terminal. For vessel carriers that are members of vessel sharing 
agreements (or any other arrangement whereby a carrier moves cargo on 
another carrier's vessel), the vessel carrier accepting the booking 
shall be responsible for reporting undocumented cargo, without regard 
to whether it operates the vessel on which the transportation is to be 
made.
    ``(e) Assessment of Penalties.--Whoever is found to have violated 
subsection (b) of this section shall be liable to the United States for 
civil penalties in a monetary amount up to the value of the cargo, or 
the actual cost of the transportation, whichever is greater.
    ``(f) Seizure of Undocumented Cargo.--
        ``(1) Any cargo that is not properly documented pursuant to 
    this section and has remained in the marine terminal for more than 
    48 hours after being delivered to the marine terminal operator 
    shall be subject to search, seizure, and forfeiture.
        ``(2) The shipper of any such cargo is liable to the marine 
    terminal operator and to the ocean carrier for demurrage and other 
    applicable charges for any undocumented cargo which has been 
    notified to or searched or seized by the Customs Service for the 
    entire period the cargo remains under the order and direction of 
    the Customs Service. Unless the cargo is seized by the Customs 
    Service and forfeited, the marine terminal operator and the ocean 
    carrier shall have a lien on the cargo for the amount of the 
    demurrage and other charges.
    ``(g) Effect on Other Provisions.--Nothing in this section shall be 
construed, interpreted, or applied to relieve or excuse any party from 
compliance with any obligation or requirement arising under any other 
law, regulation, or order with regard to the documentation or carriage 
of cargo.''.
    (c) Secretary.--For purposes of this section, the term 
``Secretary'' means the Secretary of the Treasury. If, at the time the 
regulations required by subsection (a)(1) are promulgated, the Customs 
Service is no longer located in the Department of the Treasury, then 
the Secretary of the Treasury shall exercise the authority under 
subsection (a) jointly with the Secretary of the Department in which 
the Customs Service is located.

SEC. 343A. SECURE SYSTEMS OF TRANSPORTATION.

    (a) Joint Task Force.--The Secretary of the Treasury shall 
establish a joint task force to evaluate, prototype, and certify secure 
systems of transportation. The joint task force shall be comprised of 
officials from the Department of Transportation and the Customs 
Service, and any other officials that the Secretary deems appropriate. 
The task force shall establish a program to evaluate and certify secure 
systems of international intermodal transport no later than 1 year 
after the date of enactment of this Act. The task force shall solicit 
and consider input from a broad range of interested parties.
    (b) Program Requirements.--At a minimum the program referred to in 
subsection (a) shall require certified systems of international 
intermodal transport to be significantly more secure than existing 
transportation programs, and the program shall--
        (1) establish standards and a process for screening and 
    evaluating cargo prior to import into or export from the United 
    States;
        (2) establish standards and a process for a system of securing 
    cargo and monitoring it while in transit;
        (3) establish standards and a process for allowing the United 
    States Government to ensure and validate compliance with the 
    program elements; and
        (4) include any other elements that the task force deems 
    necessary to ensure the security and integrity of the international 
    intermodal transport movements.
    (c) Recognition of Certified Systems.--
        (1) Secretary of the Treasury.--The Secretary of the Treasury 
    shall recognize certified systems of intermodal transport in the 
    requirements of a national security plan for United States 
    seaports, and in the provisions requiring planning to reopen United 
    States ports for commerce.
        (2) Commissioner of Customs.--The Commissioner of Customs shall 
    recognize certified systems of intermodal transport in the 
    evaluation of cargo risk for purposes of United States imports and 
    exports.
    (d) Report.--Within 1 year after the program described in 
subsection (a) is implemented, the Secretary of the Treasury shall 
transmit a report to the Committees on Commerce, Science, and 
Transportation and Finance of the Senate and the Committees on 
Transportation and Infrastructure and Ways and Means of the House of 
Representatives that--
        (1) evaluates the program and its requirements;
        (2) states the Secretary's views as to whether any procedure, 
    system, or technology evaluated as part of the program offers a 
    higher level of security than under existing procedures;
        (3) states the Secretary's views as to the integrity of the 
    procedures, technology, or systems evaluated as part of the 
    program; and
        (4) makes a recommendation with respect to whether the program, 
    or any procedure, system, or technology should be incorporated in a 
    nationwide system for certified systems of intermodal transport.

SEC. 344. 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. 345. 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. 351. 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 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. 352. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANSSHIPMENT 
              ENFORCEMENT OPERATIONS.

    (a) Authorization of Appropriations.--
        (1) In general.--There is authorized to be appropriated for 
    transshipment (as described in section 351(c)) enforcement 
    operations, outreach, and education 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 the 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, outreach, education, 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 in pursuing 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. 353. 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 311(b)(1) of this 
Act, $1,317,000 shall be available until expended for the Customs 
Service to provide technical assistance to help sub-Saharan African 
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 African 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. 361. 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) by striking clause (i), and inserting the following:
        ``(i) $32,300,000 for fiscal year 2003.''; and
            (C) by striking clause (ii), and inserting the following:
        ``(ii) $33,108,000 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. 371. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 330(e)(2)(A) of the Tariff Act of 1930 (19 
U.S.C. 1330(e)(2)(A)) is amended--
        (1) by striking clause (i), and inserting the following:
        ``(i) $54,000,000 for fiscal year 2003.''; and
        (2) by striking clause (ii), and inserting the following:
        ``(ii) $57,240,000 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. 381. 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 the enactment of this Act.

SEC. 382. 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.''.

SEC. 383. PAYMENT OF DUTIES AND FEES.

    Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505(a)) is 
amended to read as follows:
    ``(a) Deposit of Estimated Duties and Fees.--Unless the entry is 
subject to a periodic payment or the merchandise is entered for 
warehouse or transportation, or under bond, the importer of record 
shall deposit with the Customs Service at the time of entry, or at such 
later time as the Secretary may prescribe by regulation (but not later 
than 10 working days after entry or release) the amount of duties and 
fees estimated to be payable on such merchandise. As soon as a periodic 
payment module of the Automated Commercial Environment is developed, 
but no later than October 1, 2004, a participating importer of record, 
or the importer's filer, may deposit estimated duties and fees for 
entries of merchandise no later than the 15th day of the month 
following the month in which the merchandise is entered or released, 
whichever comes first.''.

            DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
                  TITLE XXI--TRADE PROMOTION AUTHORITY

SEC. 2101. SHORT TITLE AND FINDINGS.

    (a) Short Title.--This title may be cited as the ``Bipartisan Trade 
Promotion Authority Act of 2002''.
    (b) Findings.--The 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. Therefore--
            (A) the recent pattern of decisions by dispute settlement 
        panels of the WTO and the Appellate Body to impose obligations 
        and restrictions on the use of antidumping, countervailing, and 
        safeguard measures by WTO members under the Antidumping 
        Agreement, the Agreement on Subsidies and Countervailing 
        Measures, and the Agreement on Safeguards has raised concerns; 
        and
            (B) the Congress is concerned that dispute settlement 
        panels of the WTO and the Appellate Body appropriately apply 
        the standard of review contained in Article 17.6 of the 
        Antidumping Agreement, to provide deference to a permissible 
        interpretation by a WTO member of provisions of that Agreement, 
        and to the evaluation by a WTO member of the facts where that 
        evaluation is unbiased and objective and the establishment of 
        the facts is proper.

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 ILO (as 
    defined in section 2113(6)) 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 for trade;
        (8) to ensure that trade agreements afford small businesses 
    equal access to international markets, equitable trade benefits, 
    and expanded export market opportunities, and provide for the 
    reduction or elimination of trade barriers that disproportionately 
    impact small businesses; and
        (9) to promote universal ratification and full compliance with 
    ILO Convention No. 182 Concerning the Prohibition and Immediate 
    Action for the Elimination of the Worst Forms of Child Labor.
    (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 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 foreign investment, while ensuring 
    that foreign investors in the United States are not accorded 
    greater substantive rights with respect to investment protections 
    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) providing for an appellate body or similar 
            mechanism to 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; and
                    (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) 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) reducing or eliminating subsidies that decrease 
        market opportunities for United States exports or unfairly 
        distort agriculture markets to the detriment of the United 
        States;
            (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 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) striving to complete a general multilateral round in 
        the World Trade Organization by January 1, 2005, and seeking 
        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)(i) 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 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) 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(6));
            (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) 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 adherence by panels convened under the Dispute 
        Settlement Understanding and by the Appellate Body to the 
        standard of review applicable under the Uruguay Round 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.
        (13) 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).
        (14) Trade remedy laws.--The principal negotiating objectives 
    of the United States with respect to trade remedy laws are--
            (A) to 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) to address and remedy market distortions that lead to 
        dumping and subsidization, including overcapacity, 
        cartelization, and market-access barriers.
        (15) 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.
        (16) Textile Negotiations.--The principal negotiating 
    objectives of the United States with respect to trade in textiles 
    and apparel articles are 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.
        (17) Worst Forms of Child Labor.--The principal negotiating 
    objective of the United States with respect to the trade-related 
    aspects of the worst forms of child labor are to seek commitments 
    by parties to trade agreements to vigorously enforce their own laws 
    prohibiting the worst forms of child labor.
    (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(6)) and to promote compliance with ILO 
    Convention No. 182 Concerning the Prohibition and Immediate Action 
    for the Elimination of the Worst Forms of Child Labor, 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 its 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, including labor markets, modeled after Executive 
    Order 13141 to the extent appropriate in establishing procedures 
    and criteria, 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) direct the Secretary of Labor to 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, 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) with respect to any trade agreement which the President 
    seeks to implement under trade authorities procedures, submit to 
    the Congress a report describing the extent to which the country or 
    countries that are parties to the agreement have in effect laws 
    governing exploitative child labor;
        (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 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 2(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) 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) 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) 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) 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) 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.
    (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) 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) 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) 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) 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.--
        (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) 
    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) 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 
        180 calendar days before the day on which the President enters 
        into a trade agreement under section 2103(b), shall report to 
        the Committee on Ways and Means of the House of Representatives 
        and the Committee on Finance of the Senate--
                (i) the range of proposals advanced in the negotiations 
            with respect to that agreement, that may be in the final 
            agreement, and that could require amendments to title VII 
            of the Tariff Act of 1930 or to chapter 1 of title II of 
            the Trade Act of 1974; and
                (ii) how these proposals relate to the objectives 
            described in section 2102(b)(14).
            (B) Certain agreements.--With respect to a trade agreement 
        entered into with Chile or Singapore, the report referred to in 
        subparagraph (A) shall be submitted by the President at least 
        90 calendar days before the day on which the President enters 
        into that agreement.
            (C) Resolutions.--(i) At any time after the transmission of 
        the report under subparagraph (A), if a resolution is 
        introduced with respect to that report in either House of 
        Congress, the procedures set forth in clauses (iii) through 
        (vi) shall apply to that resolution if--
                (I) no other resolution with respect to that report has 
            previously been reported in that House of Congress by the 
            Committee on Ways and Means or the Committee on Finance, as 
            the case may be, pursuant to those procedures; and
                (II) no procedural disapproval resolution under section 
            2105(b) introduced with respect to a trade agreement 
            entered into pursuant to the negotiations to which the 
            report under subparagraph (A) relates has previously been 
            reported in that House of Congress by the Committee on Ways 
            and Means or the Committee on Finance, as the case may be.
            (ii) For purposes of this subparagraph, the term 
        ``resolution'' means only a resolution of either House of 
        Congress, the matter after the resolving clause of which is as 
        follows: ``That the ____ finds that the proposed changes to 
        United States trade remedy laws contained in the report of the 
        President transmitted to the Congress on ____ under section 
        2104(d)(3) of the Bipartisan Trade Promotion Authority Act of 
        2002 with respect to ____, are inconsistent with the 
        negotiating objectives described in section 2102(b)(14) of that 
        Act.'', with the first blank space being filled with the name 
        of the resolving House of Congress, the second blank space 
        being filled with the appropriate date of the report, and the 
        third blank space being filled with the name of the country or 
        countries involved.
            (iii) Resolutions in the House of Representatives--
                (I) may be introduced by any Member of the House;
                (II) shall be referred to the Committee on Ways and 
            Means and, in addition, to the Committee on Rules; and
                (III) may not be amended by either Committee.
            (iv) Resolutions in the Senate--
                (I) may be introduced by any Member of the Senate;
                (II) shall be referred to the Committee on Finance; and
                (III) may not be amended.
            (iv) It is not in order for the House of Representatives to 
        consider any resolution that is not reported by the Committee 
        on Ways and Means and, in addition, by the Committee on Rules.
            (v) It is not in order for the Senate to consider any 
        resolution that is not reported by the Committee on Finance.
            (vi) The provisions of section 152(d) and (e) of the Trade 
        Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to floor 
        consideration of certain resolutions in the House and Senate) 
        shall apply to resolutions.
    (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 Act 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 the trade agreement, 
        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;
            (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); and
                    (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.

        (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 the 
        Congress enacts an implementing bill under trade authorities 
        procedures, and
            (B) is not disclosed to the Congress before an implementing 
        bill with respect to that agreement is introduced in either 
        House of Congress,
    shall not be considered to be part of the agreement approved by the 
    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.
        (2) Procedures for considering resolutions.--(A) Procedural 
    disapproval resolutions--
            (i) in the House of Representatives--
                (I) may be introduced by any Member of the House;
                (II) shall be referred to the Committee on Ways and 
            Means and, in addition, to the Committee on Rules; and
                (III) may not be amended by either Committee; and
            (ii) in the Senate--
                (I) may be introduced by any Member of the Senate;
                (II) shall be referred to the Committee on Finance; and
                (III) may not be amended.
        (B) 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 reported in 
    that House of Congress by the Committee on Ways and Means or the 
    Committee on Finance, as the case may be, and if no resolution 
    described in section 2104(d)(3)(C)(ii) with respect to that trade 
    agreement has been reported in that House of Congress by the 
    Committee on Ways and Means or the Committee on Finance, as the 
    case may be, pursuant to the procedures set forth in clauses (iii) 
    through (vi) of such section 2104(d)(3)(C).
        (C) 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.
        (D) It is not in order for the Senate to consider any 
    procedural disapproval resolution not reported by the Committee on 
    Finance.
        (3) For failure to meet other requirements.--Not later than 
    December 31, 2002, the Secretary of Commerce, in consultation with 
    the Secretary of State, the Secretary of the Treasury, the Attorney 
    General, and the United States Trade Representative, shall transmit 
    to the Congress a report setting forth the strategy of the 
    executive branch to address concerns of the Congress regarding 
    whether 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, section 2103(c), aand section 2104(d)(3)(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 
        convened under section 2107.

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 an official adviser 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 an 
    official adviser 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 convened 
        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 ``section 1103(a)(1)(A) of such Act of 
            1988'' and inserting ``section 2105(a)(1)(A) of the 
            Bipartisan Trade Promotion Authority Act of 2002''; 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 the following:
        (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. INTERESTS OF SMALL BUSINESS.

    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 the 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.

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) Agreement on safeguards.--The term ``Agreement on 
    Safeguards means the agreement referred to in section 101(d)(12) of 
    the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)).
        (2) Agreement on subsidies and countervailing measures.--The 
    term ``Agreement on Subsidies and Countervailing Measures'' means 
    the agreement referred to in section 101(d)(13) of the Uruguay 
    Round Agreements Act (19 U.S.C. 3511(d)(13)).
        (4) Antidumping agreement.--The term ``Antidumping Agreement`` 
    means the Agreement on Implementation of Article VI of the General 
    Agreement on Tariffs and Trade 1994 referred to in section 
    101(d)(7) of the Uruguay Round Agreements Act (19 U.S.C. 
    3511(d)(7)).
        (5) Appellate body.--The term ``Appellate Body'' means the 
    Appellate Body established under Article 17.1 of the Dispute 
    Settlement Understanding.
        (6) 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.
        (7) Dispute settlement understanding.--The term ``Dispute 
    Settlement Understanding'' means the Understanding on Rules and 
    Procedures Governing the Settlement of Disputes referred to in 
    section 101(d)(16) of the Uruguay Round Agreements Act.
        (8) 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).
        (9) ILO.--The term ``ILO'' means the International Labor 
    Organization.
        (10) Import sensitive agricultural product.--The term ``import 
    sensitive agricultural product'' means an agricultural product--
            (A) with respect to which, as a result of the Uruguay Round 
        Agreements 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 that was 
        not less than 97.5 percent of the rate of duty that applied to 
        such article on December 31, 1994; or
            (B) which was subject to a tariff-rate quota on the date of 
        the enactment of this Act.
        (11) 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.
        (12) 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)).
        (13) World trade organization; wto.--The terms ``World Trade 
    Organization'' and ``WTO'' mean the organization established 
    pursuant to the WTO Agreement.
        (14) WTO agreement.--The term ``WTO Agreement'' means the 
    Agreement Establishing the World Trade Organization entered into on 
    April 15, 1994.
        (15) WTO member.--The term ``WTO member'' has the meaning given 
    that term in section 2(10) of the Uruguay Round Agreements Act (19 
    U.S.C. 3501(10)).

                DIVISION C--ANDEAN TRADE PREFERENCE ACT
                  TITLE XXXI--ANDEAN TRADE PREFERENCE

SEC. 3101. SHORT TITLE.

    This title may be cited as the ``Andean Trade Promotion and Drug 
Eradication Act''.

SEC. 3102. 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 beneficiary 
    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. 3103. ARTICLES ELIGIBLE FOR PREFERENTIAL TREATMENT.

    (a) Eligibility of Certain Articles.--Section 204 of the Andean 
Trade Preference Act (19 U.S.C. 3203) is amended--
        (1) by striking subsection (c) and redesignating subsections 
    (d) through (g) as subsections (c) through (f), respectively; and
        (2) by amending subsection (b) to read as follows:
    ``(b) Exceptions and Special Rules.--
        ``(1) Certain articles that are not import-sensitive.--The 
    President may proclaim duty-free treatment under this title for any 
    article described in subparagraph (A), (B), (C), or (D) that is the 
    growth, product, or manufacture of an ATPDEA beneficiary country, 
    that is imported directly into the customs territory of the United 
    States from an ATPDEA beneficiary country, and that meets the 
    requirements of this section, if the President determines that such 
    article is not import-sensitive in the context of imports from 
    ATPDEA beneficiary countries:
            ``(A) Footwear not designated at the time of the effective 
        date of this title as eligible for purposes of the generalized 
        system of preferences under title V of the Trade Act of 1974.
            ``(B) Petroleum, or any product derived from petroleum, 
        provided for in headings 2709 and 2710 of the HTS.
            ``(C) 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.
            ``(D) Handbags, luggage, flat goods, work gloves, and 
        leather wearing apparel that were not designated on August 5, 
        1983, as eligible articles for purposes of the generalized 
        system of preferences under title V of the Trade Act of 1974.
        ``(2) Exclusions.--Subject to paragraph (3), duty-free 
    treatment under this title may not be extended to--
            ``(A) textiles 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) rum and tafia classified in subheading 2208.40 of the 
        HTS;
            ``(C) sugars, syrups, and sugar-containing products subject 
        to over-quota duty rates under applicable tariff-rate quotas; 
        or
            ``(D) tuna prepared or preserved in any manner in airtight 
        containers, except as provided in paragraph (4).
        ``(3) Apparel articles and certain textile articles.--
            ``(A) In general.--Apparel articles that are imported 
        directly into the customs territory of the United States from 
        an ATPDEA beneficiary country shall enter the United States 
        free of duty and free of any quantitative restrictions, 
        limitations, or consultation levels, but only if such articles 
        are described in subparagraph (B).
            ``(B) Covered articles.--The apparel articles referred to 
        in subparagraph (A) are the following:
                ``(i) Apparel articles assembled from products of the 
            united states or atpdea beneficiary countries or products 
            not available in commercial quantities.--Apparel articles 
            sewn or otherwise assembled in 1 or more ATPDEA beneficiary 
            countries, or the United States, or both, exclusively from 
            any one or any combination of the following:

                    ``(I) Fabrics or fabric components wholly formed, 
                or components knit-to-shape, in the United States, from 
                yarns wholly formed in the United States or 1 or more 
                ATPDEA beneficiary countries (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). Apparel articles shall qualify 
                under this subclause only if all dyeing, printing, and 
                finishing of the fabrics from which the articles are 
                assembled, if the fabrics are knit fabrics, is carried 
                out in the United States. Apparel articles shall 
                qualify under this subclause only if all dyeing, 
                printing, and finishing of the fabrics from which the 
                articles are assembled, if the fabrics are woven 
                fabrics, is carried out in the United States.
                    ``(II) Fabrics or fabric components formed or 
                components knit-to-shape, in 1 or more ATPDEA 
                beneficiary countries, from yarns wholly formed in 1 or 
                more ATPDEA 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 ATPDEA beneficiary 
                countries) or components are in chief value of llama, 
                alpaca, or vicuna.
                    ``(III) Fabrics or yarns, to the extent that 
                apparel articles of such fabrics or yarns would be 
                eligible for preferential treatment, without regard to 
                the source of the fabrics or yarns, under Annex 401 of 
                the NAFTA.

                ``(ii) Additional fabrics.--At the request of any 
            interested party, the President is authorized to proclaim 
            additional fabrics and yarns as eligible for preferential 
            treatment under clause (i)(III) if--

                    ``(I) the President determines that such fabrics or 
                yarns 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 action, 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).

                ``(iii) Apparel articles assembled in 1 or more atpdea 
            beneficiary countries from regional fabrics or regional 
            components.--(I) Subject to the limitation set forth in 
            subclause (II), apparel articles sewn or otherwise 
            assembled in 1 or more ATPDEA beneficiary countries from 
            fabrics or from fabric components formed or from components 
            knit-to-shape, in 1 or more ATPDEA beneficiary countries, 
            from yarns wholly formed in the United States or 1 or more 
            ATPDEA beneficiary countries (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 ATPDEA 
            beneficiary countries), whether or not the apparel articles 
            are also made from any of the fabrics, fabric components 
            formed, or components knit-to-shape described in clause (i) 
            (unless the apparel articles are made exclusively from any 
            of the fabrics, fabric components formed, or components 
            knit-to-shape described in clause (i)).
                ``(II) The preferential treatment referred to in 
            subclause (I) shall be extended in the 1-year period 
            beginning October 1, 2002, and in each of the 4 succeeding 
            1-year periods, to imports of apparel articles in an amount 
            not to exceed the applicable percentage of the aggregate 
            square meter equivalents of all apparel articles imported 
            into the United States in the preceding 12-month period for 
            which data are available.
                ``(III) For purposes of subclause (II), the term 
            `applicable percentage' means 2 percent for the 1-year 
            period beginning October 1, 2002, increased in each of the 
            4 succeeding 1-year periods by equal increments, so that 
            for the period beginning October 1, 2006, the applicable 
            percentage does not exceed 5 percent.
                ``(iv) Handloomed, handmade, and folklore articles.--A 
            handloomed, handmade, or folklore article of an ATPDEA 
            beneficiary country identified under subparagraph (C) that 
            is certified as such by the competent authority of such 
            beneficiary country.
                ``(v) Certain other apparel articles.--

                    ``(I) General rule.--Any apparel article 
                classifiable under subheading 6212.10 of the HTS, 
                except for articles entered under clause (i), (ii), 
                (iii), or (iv), if the article is both cut and sewn or 
                otherwise assembled in the United States, or one or 
                more ATPDEA beneficiary countries, or both.
                    ``(II) Limitation.--During the 1-year period 
                beginning on October 1, 2003, and during each of the 3 
                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 this paragraph only if the aggregate cost of 
                fabrics (exclusive of all findings and trimmings) 
                formed in the United States that are used in the 
                production of all such articles of that producer or 
                entity that are entered and eligible under this clause 
                during the preceding 1-year period is at least 75 
                percent of the aggregate declared customs value of the 
                fabric (exclusive of all findings and trimmings) 
                contained in all such articles of that producer or 
                entity that are entered and eligible under this clause 
                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 this paragraph during any succeeding 1-
                year period until the aggregate cost of fabrics 
                (exclusive of all findings and trimmings) formed in the 
                United States that are used in the production of such 
                articles of that producer or entity entered during the 
                preceding 1-year period is at least 85 percent of the 
                aggregate declared customs value of the fabric 
                (exclusive of all findings and trimmings) contained in 
                all such articles of that producer or entity that are 
                entered and eligible under this clause during the 
                preceding 1-year period.

                ``(vi) Special rules.--

                    ``(I) Exception for findings and trimmings.--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.
                    ``(II) Certain interlining.--(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 subparagraph because the article contains 
                yarns not wholly formed in the United States or in one 
                or more ATPDEA 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.
                    ``(IV) Special origin rule.--An article otherwise 
                eligible for preferential treatment under clause (i) or 
                (iii) 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 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.

                ``(vii) Textile luggage.--Textile luggage--

                    ``(I) assembled in an ATPDEA 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 ATPDEA 
                beneficiary country from fabric wholly formed in the 
                United States from yarns wholly formed in the United 
                States.

            ``(C) Handloomed, handmade, and folklore articles.--For 
        purposes of subparagraph (B)(iv), the President shall consult 
        with representatives of the ATPDEA 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 transshipment.--
                ``(i) Penalties for exporters.--If the President 
            determines, based on sufficient evidence, that an exporter 
            has engaged in transshipment with respect to apparel 
            articles from an ATPDEA 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 ATPDEA 
            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 
            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 (A) has been 
            claimed for an 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 (A).
            ``(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 ATPDEA beneficiary country if the application of 
            tariff treatment under subparagraph (A) 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 mean the period ending December 31, 
                2006; 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 ATPDEA 
                beneficiary country in question and the country does 
                not agree to consult within the time period specified 
                under section 4 of the Annex.

        ``(4) Tuna.--
            ``(A) General rule.--Tuna that is harvested by United 
        States vessels or ATPDEA beneficiary country vessels, that is 
        prepared or preserved in any manner, in an ATPDEA beneficiary 
        country, in foil or other flexible airtight containers weighing 
        with their contents not more than 6.8 kilograms each, and that 
        is imported directly into the customs territory of the United 
        States from an ATPDEA beneficiary country, shall enter the 
        United States free of duty and free of any quantitative 
        restrictions.
            ``(B) Definitions.--In this paragraph--
                ``(i) United states vessel.--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.
                ``(ii) ATPDEA vessel.--An `ATPDEA vessel' is a vessel--

                    ``(I) which is registered or recorded in an ATPDEA 
                beneficiary country;
                    ``(II) which sails under the flag of an ATPDEA 
                beneficiary country;
                    ``(III) which is at least 75 percent owned by 
                nationals of an ATPDEA beneficiary country or by a 
                company having its principal place of business in an 
                ATPDEA 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 ATPDEA beneficiary 
                country and of which, in the case of a company, at 
                least 50 percent of the capital is owned by an ATPDEA 
                beneficiary country or by public bodies or nationals of 
                an ATPDEA beneficiary country;
                    ``(IV) of which the master and officers are 
                nationals of an ATPDEA beneficiary country; and
                    ``(V) of which at least 75 percent of the crew are 
                nationals of an ATPDEA beneficiary country.

        ``(5) Customs procedures.--
            ``(A) In general.--
                ``(i) Regulations.--Any importer that claims 
            preferential treatment under paragraph (1), (3), or (4) 
            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 (1), (3), or (4) 
                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 ATPDEA 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 (1), 
                    (3), or (4).
            ``(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 (1), (3), or (4) 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 on cooperation of atpdea countries concerning 
        circumvention.--The United States Commissioner of Customs shall 
        conduct a study analyzing the extent to which each ATPDEA 
        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 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 Commissioner of Customs shall submit to the Congress, not 
        later than October 1, 2003, a report on the study conducted 
        under this subparagraph.
        ``(6) Definitions.--In this subsection--
            ``(A) Annex.--The term `the Annex' means Annex 300-B of the 
        NAFTA.
            ``(B) ATPDEA beneficiary country.--The term `ATPDEA 
        beneficiary country' means any `beneficiary country', as 
        defined in section 203(a)(1) of this title, which the President 
        designates as an ATPDEA 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 
            counternarcotics 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) NAFTA.--The term `NAFTA' means the North American 
        Free Trade Agreement entered into between the United States, 
        Mexico, and Canada on December 17, 1992.
            ``(D) WTO.--The term `WTO' has the meaning given that term 
        in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 
        3501).
            ``(E) ATPDEA.--The term `ATPDEA' means the Andean Trade 
        Promotion and Drug Eradication Act.
            ``(F) FTAA.--The term `FTAA' means the Free Trade Area for 
        the Americas.''.
    (b) Determination Regarding Retention of Designation.--Section 
203(e)(1) of the Andean Trade Preference Act (19 U.S.C. 3202(e)(1)) is 
amended--
        (1) by redesignating subparagraphs (A) and (B) as clauses (i) 
    and (ii), respectively;
        (2) by inserting ``(A)'' after ``(1)''; and
        (3) 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 
    ATPDEA beneficiary country, or
        ``(ii) withdraw, suspend, or limit the application of 
    preferential treatment under section 204(b)(1), (3), or (4) 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)(6)(B).''.
    (c) Conforming Amendments.--(1) Section 202 of the Andean Trade 
Preference Act (19 U.S.C. 3201) is amended by inserting ``(or other 
preferential treatment)'' after ``treatment''.
    (2) Section 204(a) of the Andean Trade Preference Act (19 U.S.C. 
3203(a)) is amended--
        (A) in paragraph (1)--
            (i) by inserting ``(or otherwise provided for)'' after 
        ``eligibility''; and
            (ii) by inserting ``(or preferential treatment)'' after 
        ``duty-free treatment''; and
        (B) in paragraph (2), by striking ``subsection (a)'' and 
    inserting ``paragraph (1)''.
    (d) Petitions for Review.--
        (1) In general.--Not later than 180 days after the date of the 
    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 under title V of the Trade Act of 1974 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 Andean Trade Preference Act, 
    conducting reviews of such requests, and implementing the results 
    of the reviews.
    (e) 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 April 30, 2003, and every 2 
    years thereafter during the period this title is in effect, the 
    United States Trade Representative shall submit to the 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)(6)(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)(6)(B).''.

SEC. 3104. TERMINATION.

    (a) In General.--Section 208 of the Andean Trade Preference Act (19 
U.S.C. 3206) is amended to read as follows:

``SEC. 208. TERMINATION OF PREFERENTIAL TREATMENT.

    ``No duty-free treatment or other preferential treatment extended 
to beneficiary countries under this title shall remain in effect after 
December 31, 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, and
            (B) that was made after December 4, 2001, and before the 
        date of the enactment of this Act,
    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.

SEC. 3105. REPORT ON FREE TRADE AGREEMENT WITH ISRAEL.

    (a) Report to Congress.--The United States Trade Representative 
shall review the implementation of the United States-Israel Free Trade 
Agreement and shall submit to the Speaker of the House of 
Representatives, the President of the Senate, the Committee on Ways and 
Means of the House of Representatives, and the Committee on Finance of 
the Senate a report on the results of such review.
    (b) Contents of Report.--The report under subsection (a) shall 
include the following:
        (1) A review of the terms of the United States-Israel Free 
    Trade Agreement, particularly the terms with respect to market 
    access commitments.
        (2) A review of subsequent agreements which may have been 
    reached between the parties to the Agreement and of unilateral 
    concessions of additional benefits received by each party from the 
    other.
        (3) A review of any current negotiations between the parties to 
    the Agreement with respect to implementation of the Agreement and 
    other pertinent matters.
        (4) An assessment of the degree of fulfillment of obligations 
    under the Agreement by the United States and Israel.
        (5) An assessment of improvements in structuring future trade 
    agreements that should be considered based on the experience of the 
    United States under the Agreement.
    (c) Timing of Report.--The United States Trade Representative shall 
submit the report under subsection (a) not later than 6 months after 
the date of the enactment of this Act.
    (d) Definition.--In this section, the terms ``United States-Israel 
Free Trade Agreement'' and ``Agreement'' means the Agreement on the 
Establishment of a Free Trade Area between the Government of the United 
States of America and the Government of Israel entered into on April 
22, 1985.

SEC. 3106. MODIFICATION OF DUTY TREATMENT FOR TUNA.

    Subheading 1604.14.20 of the Harmonized Tariff Schedule of the 
United States is amended--
        (1) in the article description, by striking ``20 percent of the 
    United States pack of canned tuna'' and inserting ``4.8 percent of 
    apparent United States consumption of tuna in airtight 
    containers''; and
        (2) by redesignating such subheading as subheading 1604.14.22.

SEC. 3107. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC RECOVERY 
              ACT.

    (a) In General.--Section 213(b)(2)(A) of the Carribean Basin 
Economic Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amended as follows:
        (1) Clause (i) is amended--
            (A) by striking the matter preceding subclause (I) and 
        inserting the following:
                ``(i) Apparel articles assembled in one or more cbtpa 
            beneficiary countries.--Apparel articles sewn or otherwise 
            assembled in one or more CBTPA beneficiary countries from 
            fabrics wholly formed and cut, or from 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 wholly formed and cut in the United States) 
            that are--''; and
            (B) by adding at the end the following:
            ``Apparel articles entered on or after September 1, 2002, 
            shall qualify under the preceding sentence only if all 
            dyeing, printing, and finishing of the fabrics from which 
            the articles are assembled, if the fabrics are knit 
            fabrics, is carried out in the United States. Apparel 
            articles entered on or after September 1, 2002, shall 
            qualify under the first sentence of this clause only if all 
            dyeing, printing, and finishing of the fabrics from which 
            the articles are assembled, if the fabrics are woven 
            fabrics, is carried out in the United States.''.
        (2) Clause (ii) is amended to read as follows:
                ``(ii) Other apparel articles assembled in one or more 
            cbtpa beneficiary countries.--Apparel articles sewn or 
            otherwise assembled in one or more CBTPA beneficiary 
            countries with thread formed in the United States from 
            fabrics wholly formed in the United States and cut in one 
            or more CBTPA beneficiary countries from yarns wholly 
            formed in the United States, or from components knit-to-
            shape in the United States from yarns wholly formed in the 
            United States, or both (including fabrics not formed from 
            yarns, if such fabrics are classifiable under heading 5602 
            or 5603 of the HTS and are wholly formed in the United 
            States). Apparel articles entered on or after September 1, 
            2002, shall qualify under the preceding sentence only if 
            all dyeing, printing, and finishing of the fabrics from 
            which the articles are assembled, if the fabrics are knit 
            fabrics, is carried out in the United States. Apparel 
            articles entered on or after September 1, 2002, shall 
            qualify under the first sentence of this clause only if all 
            dyeing, printing, and finishing of the fabrics from which 
            the articles are assembled, if the fabrics are woven 
            fabrics, is carried out in the United States.''.
        (3) Clause (iii)(II) is amended to read as follows:
                ``(II) The amount referred to in subclause (I) is as 
            follows:

                    ``(aa) 500,000,000 square meter equivalents during 
                the 1-year period beginning on October 1, 2002.
                    ``(bb) 850,000,000 square meter equivalents during 
                the 1-year period beginning on October 1, 2003.
                    ``(cc) 970,000,000 square meter equivalents in each 
                succeeding 1-year period through September 30, 2008.''.

        (4) Clause (iii)(IV) is amended to read as follows:
                ``(IV) The amount referred to in subclause (III) is as 
            follows:

                    ``(aa) 4,872,000 dozen during the 1-year period 
                beginning on October 1, 2001.
                    ``(bb) 9,000,000 dozen during the 1-year period 
                beginning on October 1, 2002.
                    ``(cc) 10,000,000 dozen during the 1-year period 
                beginning on October 1, 2003.
                    ``(dd) 12,000,000 dozen in each succeeding 1-year 
                period through September 30, 2008.''.

        (5) Clause (iv) is amended to read as follows:
                ``(iv) Certain other apparel articles.--

                    ``(I) General rule.--Subject to subclause (II), any 
                apparel article classifiable under subheading 6212.10 
                of the HTS, except for articles entered under clause 
                (i), (ii), (iii), (v), or (vi), if the article is both 
                cut and sewn or otherwise assembled in the United 
                States, or one or more CBTPA beneficiary countries, or 
                both.
                    ``(II) Limitation.--During the 1-year period 
                beginning on October 1, 2001, and during each of the 6 
                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 
                fabrics (exclusive of all findings and trimmings) 
                formed in the United States that are used in the 
                production of all such articles of that producer or 
                entity that are entered and eligible under this clause 
                during the preceding 1-year period is at least 75 
                percent of the aggregate declared customs value of the 
                fabric (exclusive of all findings and trimmings) 
                contained in all such articles of that producer or 
                entity that are entered and eligible under this clause 
                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 fabrics 
                (exclusive of all findings and trimmings) formed in the 
                United States that are used in the production of such 
                articles of that producer or entity entered during the 
                preceding 1-year period is at least 85 percent of the 
                aggregate declared customs value of the fabric 
                (exclusive of all findings and trimmings) contained in 
                all such articles of that producer or entity that are 
                entered and eligible under this clause during the 
                preceding 1-year period.''.

        (6) Clause (vii) is amended by adding at the end the following 
    new subclause:

                    ``(V) Thread.--An article otherwise eligible for 
                preferential treatment under this paragraph shall not 
                be ineligible for such treatment because the thread 
                used to assemble the article is dyed, printed, or 
                finished in one or more CBTPA beneficiary countries.''.

        (7) Section 213(b)(2)(A) of such Act is further amended by 
    adding at the end the following new clause:
                ``(ix) Apparel articles assembled in one or more cbtpa 
            beneficiary countries from united states and cbtpa 
            beneficiary country components.--Apparel articles sewn or 
            otherwise assembled in one or more CBTPA beneficiary 
            countries with thread formed in the United States from 
            components cut in the United States and in one or more 
            CBTPA beneficiary countries from fabric wholly formed in 
            the United States from yarns wholly formed in the United 
            States, or from components knit-to-shape in the United 
            States and one or more CBTPA beneficiary countries from 
            yarns wholly formed in the United States, or both 
            (including fabrics not formed from yarns, if such fabrics 
            are classifiable under heading 5602 or 5603 of the HTS). 
            Apparel articles shall qualify under this clause only if 
            they meet the requirements of clause (i) or (ii) (as the 
            case may be) with respect to dyeing, printing, and 
            finishing of knit and woven fabrics from which the articles 
            are assembled.''.
    (b) Effective Date of Certain Provisions.--The amendment made by 
subsection (a)(3) shall take effect on October 1, 2002.

SEC. 3108. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT.

    (a) In General.--Section 112(b) of the African Growth and 
Opportunity Act (19 U.S.C. 3721(b)) is amended as follows:
        (1) Paragraph (1) is amended by amending the matter preceding 
    subparagraph (A) to read as follows:
        ``(1) Apparel articles assembled in one or more beneficiary 
    sub-saharan african countries.--Apparel articles sewn or otherwise 
    assembled in one or more beneficiary sub-Saharan African countries 
    from fabrics wholly formed and cut, or from 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 Harmonized 
    Tariff Schedule of the United States and are wholly formed and cut 
    in the United States) that are--''.
        (2) Paragraph (2) is amended to read as follows:
        ``(2) Other apparel articles assembled in one or more 
    beneficiary sub-saharan african countries.--Apparel articles sewn 
    or otherwise assembled in one or more beneficiary sub-Saharan 
    African countries with thread formed in the United States from 
    fabrics wholly formed in the United States and cut in one or more 
    beneficiary sub-Saharan African countries from yarns wholly formed 
    in the United States, or from components knit-to-shape in the 
    United States from yarns wholly formed in the United States, or 
    both (including fabrics not formed from yarns, if such fabrics are 
    classifiable under heading 5602 or 5603 of the Harmonized Tariff 
    Schedule of the United States and are wholly formed in the United 
    States).''.
        (3) Paragraph (3) is amended--
            (A) by amending the matter preceding subparagraph (A) to 
        read as follows:
        ``(3) Apparel articles from regional fabric or yarns.--Apparel 
    articles wholly assembled in one or more beneficiary sub-Saharan 
    African countries from fabric wholly formed in one or more 
    beneficiary sub-Saharan African countries from yarns originating 
    either in the United States or one or more beneficiary sub-Saharan 
    African countries (including fabrics not formed from yarns, if such 
    fabrics are classified under heading 5602 or 5603 of the Harmonized 
    Tariff Schedule of the United States and are wholly formed in one 
    or more beneficiary sub-Saharan African countries), or from 
    components knit-to-shape in one or more beneficiary sub-Saharan 
    African countries from yarns originating either in the United 
    States or one or more beneficiary sub-Saharan African countries, or 
    apparel articles wholly formed on seamless knitting machines in a 
    beneficiary sub-Saharan African country from yarns originating 
    either in the United States or one or more beneficiary sub-Saharan 
    African countries, subject to the following:''; and
            (B) by amending subparagraph (B) to read as follows:
            ``(B) Special rule for lesser developed countries.--
                ``(i) In general.--Subject to subparagraph (A), 
            preferential treatment under this paragraph shall be 
            extended through September 30, 2004, for apparel articles 
            wholly assembled, or knit-to-shape and wholly assembled, or 
            both, in one or more lesser developed beneficiary sub-
            Saharan African countries regardless of the country of 
            origin of the fabric or the yarn used to make such 
            articles.
                ``(ii) Lesser developed beneficiary sub-saharan african 
            country.--For purposes of clause (i), the term `lesser 
            developed beneficiary sub-Saharan African country' means--

                    ``(I) a beneficiary sub-Saharan African country 
                that had a per capita gross national product of less 
                than $1,500 in 1998, as measured by the International 
                Bank for Reconstruction and Development;
                    ``(II) Botswana; and
                    ``(III) Namibia.''.

        (4) Paragraph (4)(B) is amended by striking ``18.5'' and 
    inserting ``21.5''.
        (5) Section 112(b) of such Act is further amended by adding at 
    the end the following new paragraph:
        ``(7) Apparel articles assembled in one or more beneficiary 
    sub-saharan african countries from united states and beneficiary 
    sub-saharan african country components.--Apparel articles sewn or 
    otherwise assembled in one or more beneficiary sub-Saharan African 
    countries with thread formed in the United States from components 
    cut in the United States and one or more beneficiary sub-Saharan 
    African countries from fabric wholly formed in the United States 
    from yarns wholly formed in the United States, or from components 
    knit-to-shape in the United States and one or more beneficiary sub-
    Saharan African countries from yarns wholly formed in the United 
    States, or both (including fabrics not formed from yarns, if such 
    fabrics are classifiable under heading 5602 or 5603 of the 
    Harmonized Tariff Schedule of the United States).''.
    (b) Increase in Limitation on Certain Benefits.--The applicable 
percentage under clause (ii) of section 112(b)(3)(A) of the African 
Growth and Opportunity Act (19 U.S.C. 3721(b)(3)(A)) shall be 
increased--
        (1) by 2.17 percent for the 1-year period beginning on October 
    1, 2002, and
        (2) by equal increments in each succeeding 1-year period 
    provided for in such clause, so that for the 1-year period 
    beginning October 1, 2007, the applicable percentage is increased 
    by 3.5 percent,
except that such increase shall not apply with respect to articles 
eligible under subparagraph (B) of section 112(b)(3) of that Act.

     DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT
       TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES

SEC. 4101. EXTENSION OF 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(a)) is amended by striking 
``September 30, 2001'' and inserting ``December 31, 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 
    (2), the entry--
            (A) 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,
            (B) that was made after September 30, 2001, and before the 
        date of the enactment of this Act, and
            (C) 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.
        (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 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.
        (3) Definition.--As used in this subsection, the term ``entry'' 
    includes a withdrawal from warehouse for consumption.

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 
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); and''.

                  DIVISION E--MISCELLANEOUS PROVISIONS
                 TITLE L--MISCELLANEOUS TRADE BENEFITS
                      Subtitle A--Wool Provisions

SEC. 5101. 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 5107.10 or 
    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 5107.10 or 
    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 
    5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 
    5104.00, 5105.21, 5105.29, or 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 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 
    5103.20, 5104.00, 5105.21, 5105.29, or 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 5107.10 or 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 5101.11, 5101.19, 
            5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 
            5105.21, 5105.29, or 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 
        120 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 
    5107.01 or 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 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 
    5103.20, 5104.00, 5105.21, 5105.29, or 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 
    hereby 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. 5102. 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 hereby 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.

                      Subtitle B--Other Provisions

SEC. 5201. FUND FOR WTO DISPUTE SETTLEMENTS.

    (a) Establishment of Fund.--There is established in the Treasury a 
fund for the payment of settlements under this section.
    (b) Authority of USTR to Pay Settlements.--Amounts in the fund 
established under subsection (a) shall be available, as provided in 
appropriations Acts, only for the payment by the United States Trade 
Representative of the amount of the total or partial settlement of any 
dispute pursuant to proceedings under the auspices of the World Trade 
Organization, if--
        (1) in the case of a total or partial settlement in an amount 
    of not more than $10,000,000, the Trade Representative certifies to 
    the Secretary of the Treasury that the settlement is in the best 
    interests of the United States; and
        (2) in the case of a total or partial settlement in an amount 
    of more than $10,000,000, the Trade Representative certifies to the 
    Congress that the settlement is in the best interests of the United 
    States.
    (c) Appropriations.--There are authorized to be appropriated to the 
fund established under subsection (a)--
        (1) $50,000,000; and
        (2) amounts equivalent to amounts recovered by the United 
    States pursuant to the settlement of disputes pursuant to 
    proceedings under the auspices of the World Trade Organization.
Amounts appropriated to the fund are authorized to remain available 
until expended.
    (d) Management of fund.--Sections 9601 and 9602(b) of the Internal 
Revenue Code of 1986 shall apply to the fund established under 
subsection (a) to the same extent as such provisions apply to trust 
funds established under subchapter A of chapter 98 of such Code.

SEC. 5202. 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.

SEC. 5203. SUGAR TARIFF-RATE QUOTA CIRCUMVENTION.

    (a) In General.--Chapter 17 of the Harmonized Tariff Schedule of 
the United States is amended in the superior text to subheading 
1702.90.05 by striking ``Containing'' and all that follows through 
``solids:'' and inserting the following:
    ``Containing soluble non-sugar solids (excluding any foreign 
    substances, including but not limited to molasses, that may have 
    been added to or developed in the product) equal to 6 percent or 
    less by weight of the total soluble solids:''.
    (b) Monitoring for Circumvention.--The Secretary of Agriculture and 
the Commissioner of Customs shall continuously monitor imports of sugar 
and sugar-containing products provided for in chapters 17, 18, 19, and 
21 of the Harmonized Tariff Schedule of the United States, other than 
molasses imported for use in animal feed or the production of rum and 
articles prepared for marketing to the ultimate consumer in the form 
and package in which imported, for indications that an article is being 
used to circumvent a tariff-rate quota provided for in those chapters. 
The Secretary and Commissioner shall specifically examine imports of 
articles provided for in subheading 1703.10.30 of the Harmonized Tariff 
Schedule of the United States.
    (c) Reports and Recommendations.--The Secretary and the 
Commissioner shall report their findings to Congress and the President 
not later than 180 days after the date of enactment of this Act and 
every 6 months thereafter. The reports shall include data and a 
description of developments and trends in the composition of trade of 
articles provided for in the chapters of the Harmonized Tariff Schedule 
of the United States identified in subsection (b) and any indications 
of circumvention that may exist. The reports shall also include 
recommendations for ending such circumvention, including 
recommendations for legislation.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.