[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3881 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 3881

     To amend the Trade Act of 1974 to extend the trade adjustment 
   assistance program to the service sector, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 2004

   Mr. Smith of Washington (for himself, Mr. Holden, Mr. Inslee, Mr. 
 Rangel, Mr. Levin, Mr. Matsui, Mr. Stark, Mr. Cardin, Mr. McDermott, 
 Mr. McNulty, Mr. Becerra, Mrs. Jones of Ohio, Mr. Spratt, Mr. George 
 Miller of California, Mr. Dicks, Mr. Baird, Mr. Larsen of Washington, 
and Ms. Slaughter) introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To amend the Trade Act of 1974 to extend the trade adjustment 
   assistance program to the service sector, 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 Adjustment Assistance Equity 
For Service Workers Act of 2004''.

SEC. 2. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICES SECTOR.

    (a) Adjustment Assistance for Workers.--Section 221(a)(1)(A) of the 
Trade Act of 1974 (19 U.S.C. 2271(a)(1)(A)) is amended by striking 
``firm)'' and inserting ``firm, and workers in a service sector firm or 
subdivision of a service sector firm or public agency)''.
    (b) Group Eligibility Requirements.--Section 222 of the Trade Act 
of 1974 (19 U.S.C. 2272) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``agricultural firm)'' and inserting 
                ``agricultural firm, and workers in a service sector 
                firm or subdivision of a service sector firm or public 
                agency)'';
                    (B) in paragraph (1), by inserting ``or public 
                agency'' after ``of the firm''; and
                    (C) in paragraph (2)--
                            (i) in subparagraph (A)(ii), by striking 
                        ``like or directly competitive with articles 
                        produced'' and inserting ``or services like or 
                        directly competitive with articles produced or 
                        services provided'';
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B)(i) there has been a shift, by such workers' 
                firm, subdivision, or public agency to a foreign 
                country, of production of articles, or in provision of 
                services, like or directly competitive with articles 
                which are produced, or services which are provided, by 
                such firm, subdivision, or public agency; or
                    ``(ii) such workers' firm, subdivision, or public 
                agency has obtained or is likely to obtain services 
                described in clause (i) from a foreign country.'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``agricultural firm)'' and inserting 
                ``agricultural firm, and workers in a service sector 
                firm or subdivision of a service sector firm or public 
                agency)'';
                    (B) in paragraph (2), by inserting ``or service'' 
                after ``related to the article''; and
                    (C) in paragraph (3)(A), by inserting ``or 
                services'' after ``component parts'';
            (3) in subsection (c)--
                    (A) in paragraph (3)--
                            (i) by inserting ``or services'' after 
                        ``value-added production processes'';
                            (ii) by striking ``or finishing'' and 
                        inserting ``, finishing, or testing'';
                            (iii) by inserting ``or services'' after 
                        ``for articles'';
                            (iv) by inserting ``(or subdivision)'' 
                        after ``such other firm''; and
                            (v) by striking ``, if the certification'' 
                        and all that follows through ``Mexico''; and
                    (B) in paragraph (4)--
                            (i) by striking ``for articles'' and 
                        inserting ``, or services, for articles or 
                        services''; and
                            (ii) by inserting ``(or subdivision)'' 
                        after ``such other firm''; and
            (4) by adding at the end the following new subsection:
    ``(d) Basis for Secretary's Determinations.--
            ``(1) Increased imports.--For purposes of subsection 
        (a)(2)(A)(ii), the Secretary may determine that increased 
        imports of like or directly competitive articles or services 
        exist if the workers' firm or subdivision, or customers of the 
        workers' firm or subdivision accounting for not less than 20 
        percent of the sales of the workers' firm or subdivision, 
        certify to the Secretary that they are obtaining such articles 
        or services from a foreign country.
            ``(2) Obtaining services abroad.--For purposes of 
        subsection (a)(2)(B)(ii), the Secretary may determine that the 
        workers' firm, subdivision, or public agency has obtained or is 
        likely to obtain like or directly competitive services from a 
        foreign country based on a certification thereof from the 
        workers' firm, subdivision, or public agency.
            ``(3) Authority of the secretary.--The Secretary may obtain 
        the certifications under paragraphs (1) and (2) through 
        questionnaires or such other manner as the Secretary determines 
        is appropriate.''.
    (c) Training.--Section 236(a)(2)(A) of the Trade Act of 1974 (19 
U.S.C. 2296(a)(2)(A)) is amended by striking ``$220,000,000'' and 
inserting ``$440,000,000''.
    (d) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C. 
2319) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``or public agency'' after ``of a 
                firm''; and
                    (B) by inserting ``or public agency'' after ``or 
                subdivision'';
            (2) in paragraph (2)(B), by inserting ``or public agency'' 
        after ``the firm'';
            (3) by redesignating paragraphs (8) through (17) as 
        paragraphs (9) through (18), respectively;
            (4) by inserting after paragraph (6) the following:
            ``(7) The term `public agency' means a department or agency 
        of a State or local government or of the Federal Government.
            ``(8) The term `service sector firm' means an entity 
        engaged in the business of providing services.''.
    (e) Technical Amendment.--Section 245(a) of the Trade Act of 1974 
(19 U.S.C. 2317(a)) is amended by striking ``, other than subchapter 
D''.

SEC. 3. TRAINING.

    (a) Basis for Waiver.--Section 231(c)(1) of the Trade Act of 1974 
(19 U.S.C. 2291(c)(1)) is amended by adding at the end the following:
                    ``(G) Advanced degree or certification.--The worker 
                possesses a postgraduate degree from an institution of 
                higher education (as defined in section 101(a) of the 
                Higher Education Act of 1965) or equivalent foreign 
                institution), or has received an equivalent 
                postgraduate certification in a specialized field, and 
                there is a reasonable expectation of employment at 
                equivalent wages in the foreseeable future.''.
    (b) Training Programs.--Section 236(a)(5) of the Trade Act of 1974 
(19 U.S.C. 2296(a)(5)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E)(ii);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``, and''; and
            (3) by adding at the end the following:
            ``(G) continuation of enrollment at an institution of 
        higher education (as defined in section 101(a) of the Higher 
        Education Act of 1965) for the purpose of obtaining a degree, 
        for a period of no longer than 104 weeks, if prior to total or 
        partial separation from adversely affected employment, the 
        worker was enrolled in such program, and there is a reasonable 
        expectation of employment at equivalent wages upon completion 
        of the program.''.

SEC. 4. TRADE ADJUSTMENT ASSISTANCE FOR FIRMS AND INDUSTRIES.

    (a) Firms.--
            (1) Assistance.--Section 251 of the Trade Act of 1974 (19 
        U.S.C. 2341) is amended--
                    (A) in subsection (a), by inserting ``or service 
                sector firm'' after ``(including any agricultural 
                firm'';
                    (B) in subsection (c)(1)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``or service sector firm'' 
                        after ``any agricultural firm'';
                            (ii) in subparagraph (B)(ii), by inserting 
                        ``or service'' after ``of an article''; and
                            (iii) in subparagraph (C), by striking 
                        ``articles like or directly competitive with 
                        articles which are produced'' and inserting 
                        ``articles or services like or directly 
                        competitive with articles or services which are 
                        produced or provided''; and
                    (C) by adding at the end the following:
    ``(e) Basis for Secretary Determination.--
            ``(1) Increased imports.--For purposes of subsection 
        (c)(1)(C), the Secretary may determine that increases of 
        imports of like or directly competitive articles or services 
        exist if customers accounting for not less than 20 percent of 
        the sales of the workers' firm certify to the Secretary that 
        they are obtaining such articles or services from a foreign 
        country.
            ``(2) Authority of the secretary.--The Secretary may obtain 
        the certifications under paragraph (1) through questionnaires 
        or such other manner as the Secretary determines is 
        appropriate. The subpoena power described in section 249 shall 
        be extended to the Secretary for purposes of carrying out this 
        subsection.''.
            (2) Authorization of appropriations.--Section 256(b) of the 
        Trade Act of 1974 (19 U.S.C. 2346(b)) is amended--
                    (A) by striking ``$16,000,000'' and inserting 
                ``$32,000,000''; and
                    (B) by adding at the end the following: ``If the 
                amount appropriated pursuant to this subsection in any 
                fiscal year is less than the amount authorized to be 
                appropriated by this subsection, the Secretary shall 
                consult with the Committee on Ways and Means and the 
                Committee on Appropriations of the House of 
                Representatives, the Committee on Finance and the 
                Committee on Appropriations of the Senate, and any 
                other committee of appropriate jurisdiction in Congress 
                on allocating the amount so appropriated.''.
            (3) Definition.--Section 261 of the Trade Act of 1974 (19 
        U.S.C. 2351) is amended--
                    (A) by striking ``For purposes of'' and inserting 
                ``(a) Firm.--For purposes of''; and
                    (B) by adding at the end the following:
    ``(b) Service Sector Firm.--For purposes of this chapter, the term 
`service sector firm' means a firm engaged in the business of providing 
services.''.
    (b) Industries.--Section 265(a) of the Trade Act of 1974 (19 U.S.C. 
2355(a)) is amended by inserting ``or service'' after ``new product''.
    (c) Clerical Amendment.--(1) Section 249 of the Trade Act of 1974 
(19 U.S.C. 2321) is amended--
            (A) by amending the section heading to read as follows:

``SEC. 249. SUBPOENA AUTHORITY.'';

        and
            (B) by striking ``subpena'' each place it appears and 
        inserting ``subpoena''.
    (2) The item relating to section 249 in the table of contents of 
the Trade Act of 1974 is amended to read as follows:

``249. Subpoena authority.''.

SEC. 5. MONITORING AND REPORTING.

    Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is amended--
            (1) in this first sentence--
                    (A) by striking ``The Secretary'' and inserting 
                ``(a) Monitoring Programs.--The Secretary'';
                    (B) by inserting ``and services'' after ``imports 
                of articles'';
                    (C) by inserting ``and domestic provision of 
                services'' after ``domestic production'';
                    (D) by inserting ``or providing services'' after 
                ``producing articles''; and
                    (E) by inserting ``, or provision of services,'' 
                after ``changes in production''; and
            (2) by adding at the end the following:
    ``(b) Collection of Data and Reports.--
            ``(1) Secretary of labor.--(A) Not later than 3 months 
        after the date of the enactment of the Trade Adjustment 
        Assistance Equity Service Workers Act of 2004, the Secretary of 
        Labor shall implement a system to collect data on all adversely 
        affected workers who receive adjustment assistance under this 
        chapter, including the number of workers by State, industry, 
        the cause of dislocation of each worker, the adjustment 
        assistance received by each worker, and outcomes relating to 
        employment, retention, and earnings.
            ``(B) Not later than 16 months after such date of 
        enactment, the Secretary of Labor shall report to the Committee 
        on Ways and Means of the House of Representatives, the 
        Committee on Finance of the Senate, and any other committee of 
        appropriate jurisdiction, on whether changes to eligibility 
        requirements, benefits, or training funding should be made 
        based on the data collected under subparagraph (A).
            ``(2) Secretary of commerce.--Not later than 6 months after 
        such date of enactment, the Secretary of Commerce shall, in 
        consultation with the Secretary of Labor, conduct a study and 
        report to the Congress on ways to improve the timeliness and 
        coverage of data on trade in services, including methods to 
        identify increased imports due to the relocation of United 
        States firms to foreign countries, and increased imports due to 
        United States firms obtaining services from firms in foreign 
        countries.''.

SEC. 6. MODIFICATIONS RELATING TO CREDIT FOR HEALTH INSURANCE COSTS OF 
              CERTAIN TAA AND PBGC PENSION RECIPIENTS.

    (a) Presumptive Status as a TAA Recipient.--
            (1) In general.--Subsection (c) of section 35 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(5) Presumptive status as a taa recipient.--
                    ``(A) In general.--The term `eligible individual' 
                shall include any individual who is covered by a 
                petition filed with the Secretary of Labor under 
                section 221 of the Trade Act of 1974. This paragraph 
                shall apply to any individual only with respect to 
                months which--
                            ``(i) end after the date that such petition 
                        is so filed, and
                            ``(ii) begin before the Secretary of Labor 
                        makes a final determination with respect to 
                        such petition.
                    ``(B) Exception.--If the Secretary, after 
                consultation with the Secretary of Labor, determines 
                that, at the time of the filing of such petition, there 
                was not reasonable cause to believe that the petition 
                would result in a certification by the Secretary of 
                Labor, with respect to individuals covered by such 
                petition--
                            ``(i) subparagraph (A) shall not apply to 
                        such individuals, and
                            ``(ii) in the case of any such individual 
                        on whose behalf a payment is made under section 
                        7527 with respect to a month described in 
                        paragraph (1), the tax imposed under this 
                        subtitle for the taxable year of such 
                        individual which includes the date of such 
                        determination shall be increased by the amount 
                        of such payments.''.
            (2) Conforming amendment.--Paragraph (1) of section 7527(d) 
        of such Code is amended by striking ``or an eligible 
        alternative TAA recipient (as defined in section 35(c)(3))'' 
        and inserting ``, an eligible alternative TAA recipient (as 
        defined in section 35(c)(3)), or an individual who is an 
        eligible individual by reason of section 35(c)(5)''.
    (b) 100 Percent Credit for First Month of Health Insurance Costs.--
Subsection (a) of section 35 of such Code is amended by inserting 
``(100 percent in the case of the taxpayer's first eligible coverage 
month)'' after ``65 percent''.
    (c) Additional Requirements for Individual Health Insurance 
Costs.--
            (1) In general.--Subparagraph (A) of section 35(e)(2) of 
        such Code is amended by striking ``subparagraphs (B) through 
        (H) of paragraph (1)'' and inserting ``paragraph (1) (other 
        than subparagraphs (A) and (I) thereof)''.
            (2) Rating system requirement.--Subparagraph (J) of section 
        35(e)(1) of such Code is amended by adding at the end the 
        following: ``Such term does not include any insurance unless 
        the premiums for such insurance are restricted based on a 
        community rating system or rate-band system.''.
    (d) Period of Creditable Coverage Measured From Date of Separation 
From Employment.--
            (1) In general.--Clause (i) of section 35(e)(2)(B) of such 
        Code is amended by striking ``the date on which the individual 
        seeks to enroll in the coverage described in subparagraphs (B) 
        through (H) of paragraph (1)'' and inserting ``the end of the 
        30-day period described in paragraph (1)(J)''.
            (2) Special rule for eligible pbgc pension recipients.--
                    (A) In general.--Subsection (e) of section 35 of 
                such Code is amended by adding at the end the following 
                new paragraph:
            ``(4) Special rule for eligible pbgc pension recipients.--
        In the case of an eligible PBGC pension recipient (and any 
        qualifying family member of such recipient), the term 
        `qualified health insurance' shall not include any coverage 
        described in paragraph (1) (other than subparagraphs (A) and 
        (I) thereof) unless such recipient enrolls in such coverage 
        during the 90-day period beginning on the later of--
                    ``(A) the last day of the first month with respect 
                to which such recipient becomes an eligible PBGC 
                pension recipient, or
                    ``(B) the date of the enactment of the Trade 
                Adjustment Assistance Equity for Service Workers Act of 
                2004.''.
                    (B) Outreach.--The Secretary of the Treasury shall 
                carry out a program to notify individuals prior to 
                their becoming eligible PBGC pension recipients (as 
                defined in section 35 of the Internal Revenue Code of 
                1986) of the requirement of subsection (e)(4) of such 
                section.
    (e) Continued Qualification of Family Members After Eligible 
Individual Becomes Medicare Eligible.--Subsection (g) of section 35 is 
amended by redesignating paragraph (9) as paragraph (10) and inserting 
after paragraph (8) the following new paragraph:
            ``(9) Continued qualification of family members after 
        eligible individual becomes medicare eligible.--In the case of 
        a month which would be an eligible coverage month with respect 
        to an eligible individual but for subsection (f)(2)(A), such 
        month shall be treated as an eligible coverage month with 
        respect to any qualifying family member of such eligible 
        individual (but not with respect to such eligible 
        individual).''.
    (f) Offering of Federal Fallback Coverage in States not Offering 
State Qualified Health Insurance.--
            (1) Provision of fallback coverage.--
                    (A) In general.--The Director of the Office of 
                Personnel Management jointly with the Secretary of the 
                Treasury shall establish a program under which 
                individuals described in subparagraph (B) are offered 
                enrollment under health benefit plans that are made 
                available under FEHBP.
                    (B) Individuals described.--For purposes of 
                subparagraph (A), individuals described in this 
                subparagraph are eligible individuals (as defined in 
                subsection (c)(1) of section 35 of the Internal Revenue 
                Code of 1986) who reside in a State in which any 
                qualified health insurance described in subparagraphs 
                (B) through (I) of subsection (e)(1) of such section is 
                not offered.
            (2) Terms and conditions.--The terms and conditions of 
        health benefits plans under paragraph (1) shall be the same as 
        the terms and coverage offered under FEHBP, except that the 
        premium charged for such health benefit plans offered under 
        such paragraph shall be equal to the full premium (including 
        both employer and beneficiary share) charged for such coverage 
        for full-time employees under FEHBP.
            (3) Study.--The Director of the Office of Personnel 
        Management jointly with the Secretary of the Treasury shall 
        conduct a study of the impact of the offering of health benefit 
        plans under this subsection on the terms and conditions, 
        including premiums, for health benefit plans offered under 
        FEHBP and shall submit to Congress, not later than 2 years 
        after the date of the enactment of this Act, a report on such 
        study. Such report may contain such recommendations regarding 
        the establishment of separate risk pools for individuals 
        covered under FEHBP and eligible individuals covered this 
        subsection as may be appropriate to protect the interests of 
        individuals covered under FEHBP.
            (4) FEHBP defined.--For purposes of this subsection, the 
        term ``FEHBP'' means the Federal Employees Health Benefits 
        Program offered under chapter 89 of title 5, United States 
        Code.
            (5) Conforming amendment.--Paragraph (1) of section 35(e) 
        of the Internal Revenue Code of 1986 is amended by adding at 
        the end the following:
                    ``(K) Coverage under a health benefits plan offered 
                under section 6(e) of the Trade Adjustment Assistance 
                Equity for Service Workers Act of 2004.''.
    (g) Report to Congress.--Not later than 18 months after the date of 
the enactment of this Act, the Secretary of the Treasury shall transmit 
to the Congress a report which includes the recommendations of the 
Secretary regarding increasing the number eligible individuals who are 
covered by qualified health insurance, including increasing such number 
by increasing the credit subsidy under section 35 of the Internal 
Revenue Code of 1986 to make the premiums for such insurance more 
affordable. Terms used in this subsection which are defined in such 
section shall have the meaning given such terms by such section.
    (h) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act 
in taxable years ending after such date.
                                 <all>