[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5030 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5030

 To amend the Trade Act of 1974 to provide trade adjustment assistance 
  to the services sector and for communities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 8, 2004

 Mr. Michaud introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
 Veterans' Affairs, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Trade Act of 1974 to provide trade adjustment assistance 
  to the services sector and for communities, 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 ``Invest in American Workers Act of 
2004''.

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

    (a) Adjustment Assistance for Workers.--
            (1) Eligibility.--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''.
            (2) Group eligibility requirements.--Section 222 of the 
        Trade Act of 1974 (19 U.S.C. 2272) is amended--
                    (A) in subsection (a)--
                            (i) 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)'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (A)(ii), by 
                                striking ``like or directly competitive 
                                with articles produced'' and inserting 
                                ``or services like or directly 
                                competitive with articles produced or 
                                services provided''; and
                                    (II) by inserting after 
                                subparagraph (B) the following:
                    ``(C)(i) there has been a shift, by such workers' 
                firm or subdivision to a foreign country, in provision 
                of services like or directly competitive with services 
                which are provided by such firm or subdivision; or
                    ``(ii) such workers' firm or subdivision has 
                obtained or is likely to obtain services described in 
                clause (i) from a foreign country'';
                    (B) in subsection (b), 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)''; 
                and
                    (C) in subsection (c)(3)--
                            (i) by inserting ``(or subdivision)'' after 
                        ``such other firm''; and
                            (ii) by striking ``, if the certification'' 
                        and all that follows through ``Mexico''.
            (3) Definitions.--Section 247 of the Trade Act of 1974 (19 
        U.S.C. 2319) is amended by inserting after paragraph (6) the 
        following:
            ``(7) The term `service sector firm' means an entity 
        engaged in the business of providing information technology or 
        other high technology services.''.
    (b) Trade Adjustment Assistance for Firms and Industries.--
            (1) Firms.--
                    (A) Assistance.--Section 251 of the Trade Act of 
                1974 (19 U.S.C. 2341) is amended--
                            (i) in subsection (a), by inserting ``or 
                        service sector firm'' after ``(including any 
                        agricultural firm''; and
                            (ii) 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''.
                    (B) Definition.--Section 261 of the Trade Act of 
                1974 (19 U.S.C. 2351) is amended--
                            (i) by striking ``For purposes of'' and 
                        inserting ``(a) Firm.--For purposes of''; and
                            (ii) 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.''.
            (2) Industries.--Section 265(a) of the Trade Act of 1974 
        (19 U.S.C. 2355(a)) is amended by inserting ``or service'' 
        after ``new product''.

SEC. 3. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.

    (a) In General.--Chapter 4 of title II of the Trade Act of 1974 (19 
U.S.C. 2371 et seq.) is amended to read as follows:

        ``CHAPTER 4--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

``SEC. 271. DEFINITIONS.

    ``In this chapter:
            ``(1) Affected domestic producer.--The term `affected 
        domestic producer' means any manufacturer, producer, farmer, 
        rancher, fisherman or worker representative (including 
        associations of such persons) that was affected by a finding 
        under the Antidumping Act of 1921, or by an antidumping or 
        countervailing duty order issued under title VII of the Tariff 
        Act of 1930.
            ``(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) Community.--The term `community' means a city, 
        county, or other political subdivision of a State or a 
        consortium of political subdivisions of a State that the 
        Secretary certifies as being negatively impacted by trade.
            ``(4) Community negatively impacted by trade.--A community 
        negatively impacted by trade means a community with respect to 
        which a determination has been made under section 273.
            ``(5) Eligible community.--The term `eligible community' 
        means a community certified under section 273 for assistance 
        under this chapter.
            ``(6) Fisherman.--
                    ``(A) In general.--The term `fisherman' means any 
                person who--
                            ``(i) is engaged in commercial fishing; or
                            ``(ii) is a United States fish processor.
                    ``(B) Commercial fishing, fish, fishery, fishing, 
                fishing vessel, person, and united states fish 
                processor.--The terms `commercial fishing', `fish', 
                `fishery', `fishing', `fishing vessel', `person', and 
                `United States fish processor' have the same meanings 
                as such terms have in the Magnuson-Stevens Fishery 
                Conservation and Management Act (16 U.S.C. 1802).
            ``(7) Job loss.--The term `job loss' means the total or 
        partial separation of an individual, as those terms are defined 
        in section 247.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Commerce.

``SEC. 272. COMMUNITY TRADE ADJUSTMENT ASSISTANCE PROGRAM.

    ``(a) Establishment.--Within 6 months after the date of enactment 
of the Invest in American Workers Act of 2004, the Secretary shall 
establish a Trade Adjustment Assistance for Communities Program at the 
Department of Commerce.
    ``(b) Personnel.--The Secretary shall designate such staff as may 
be necessary to carry out the responsibilities described in this 
chapter.
    ``(c) Coordination of Federal Response.--The Secretary shall--
            ``(1) provide leadership, support, and coordination for a 
        comprehensive management program to address economic 
        dislocation in eligible communities;
            ``(2) coordinate the Federal response to an eligible 
        community--
                    ``(A) by identifying all Federal, State, and local 
                resources that are available to assist the eligible 
                community in recovering from economic distress;
                    ``(B) by ensuring that all Federal agencies 
                offering assistance to an eligible community do so in a 
                targeted, integrated manner that ensures that an 
                eligible community has access to all available Federal 
                assistance;
                    ``(C) by assuring timely consultation and 
                cooperation between Federal, State, and regional 
                officials concerning economic adjustment for an 
                eligible community; and
                    ``(D) by identifying and strengthening existing 
                agency mechanisms designed to assist eligible 
                communities in their efforts to achieve economic 
                adjustment and workforce reemployment;
            ``(3) provide comprehensive technical assistance to any 
        eligible community in the efforts of that community to--
                    ``(A) identify serious economic problems in the 
                community that are the result of negative impacts from 
                trade;
                    ``(B) integrate the major groups and organizations 
                significantly affected by the economic adjustment;
                    ``(C) access Federal, State, and local resources 
                designed to assist in economic development and trade 
                adjustment assistance;
                    ``(D) diversify and strengthen the community 
                economy; and
                    ``(E) develop a community-based strategic plan to 
                address economic development and workforce dislocation, 
                including unemployment among agricultural commodity 
                producers, and fishermen;
            ``(4) establish specific criteria for submission and 
        evaluation of a strategic plan submitted under section 274(d);
            ``(5) establish specific criteria for submitting and 
        evaluating applications for grants under section 275;
            ``(6) administer the grant programs established under 
        sections 274 and 275; and
            ``(7) establish an interagency Trade Adjustment Assistance 
        for Communities Working Group, consisting of the 
        representatives of any Federal department or agency with 
        responsibility for economic adjustment assistance, including 
        the Department of Agriculture, the Department of Education, the 
        Department of Labor, the Department of Housing and Urban 
        Development, the Department of Health and Human Services, the 
        Small Business Administration, the Department of the Treasury, 
        the Department of Commerce, and any other Federal, State, or 
        regional department or agency the Secretary determines 
        necessary or appropriate.

``SEC. 273. CERTIFICATION AND NOTIFICATION.

    ``(a) Certification.--Not later than 45 days after an event 
described in subsection (c)(1), the Secretary of Commerce shall 
determine if a community described in subsection (b)(1) is negatively 
impacted by trade, and if a positive determination is made, shall 
certify the community for assistance under this chapter.
    ``(b) Determination That Community Is Eligible.--
            ``(1) Community described.--A community described in this 
        paragraph means a community with respect to which on or after 
        October 1, 2004--
                    ``(A) the Secretary of Labor certifies a group of 
                workers (or their authorized representative) in the 
                community as eligible for assistance pursuant to 
                section 223;
                    ``(B) the Secretary of Commerce certifies a firm 
                located in the community as eligible for adjustment 
                assistance under section 251;
                    ``(C) the Secretary of Agriculture certifies a 
                group of agricultural commodity producers (or their 
                authorized representative) in the community as eligible 
                for adjustment assistance under section 293;
                    ``(D) an affected domestic producer is located in 
                the community; or
                    ``(E) the Secretary determines that a significant 
                number of fishermen in the community is negatively 
                impacted by trade.
            ``(2) Negatively impacted by trade.--The Secretary shall 
        determine that a community is negatively impacted by trade, 
        after taking into consideration--
                    ``(A) the number of jobs affected compared to the 
                size of workforce in the community;
                    ``(B) the severity of the rates of unemployment in 
                the community and the duration of the unemployment in 
                the community;
                    ``(C) the income levels and the extent of 
                underemployment in the community;
                    ``(D) the outmigration of population from the 
                community and the extent to which the outmigration is 
                causing economic injury in the community; and
                    ``(E) the unique problems and needs of the 
                community.
    ``(c) Definition and Special Rules.--
            ``(1) Event described.--An event described in this 
        paragraph means one of the following:
                    ``(A) A notification described in paragraph (2).
                    ``(B) A certification of a firm under section 251.
                    ``(C) A finding under the Antidumping Act of 1921, 
                or an antidumping or countervailing duty order issued 
                under title VII of the Tariff Act of 1930.
                    ``(D) A determination by the Secretary that a 
                significant number of fishermen in a community have 
                been negatively impacted by trade.
            ``(2) Notification.--The Secretary of Labor, immediately 
        upon making a determination that a group of workers is eligible 
        for trade adjustment assistance under section 223, (or the 
        Secretary of Agriculture, immediately upon making a 
        determination that a group of agricultural commodity producers 
        is eligible for adjustment assistance under section 293, as the 
        case may be) shall notify the Secretary of Commerce of the 
        determination.
            ``(3) Look back.--In any case in which an event described 
        in paragraph (1) occurred on or after January 1, 1998, and 
        before the effective date of this chapter, the Secretary shall, 
        not later than 45 days after such effective date, determine 
        whether the community is negatively impacted by trade, and if a 
        positive determination is made, shall certify the community for 
        assistance under this chapter.
    ``(d) Notification to Eligible Communities.--Immediately upon 
certification by the Secretary of Commerce that a community is eligible 
for assistance under subsection (b), the Secretary shall notify the 
community--
            ``(1) of the determination under subsection (b);
            ``(2) of the provisions of this chapter;
            ``(3) how to access the clearinghouse established by the 
        Department of Commerce regarding available economic assistance;
            ``(4) how to obtain technical assistance provided under 
        section 272(c)(3); and
            ``(5) how to obtain grants, tax credits, low income loans, 
        and other appropriate economic assistance.

``SEC. 274. STRATEGIC PLANS.

    ``(a) In General.--An eligible community may develop a strategic 
plan for community economic adjustment and diversification.
    ``(b) Requirements for Strategic Plan.--A strategic plan shall 
contain, at a minimum, the following:
            ``(1) A description and justification of the capacity for 
        economic adjustment, including the method of financing to be 
        used.
            ``(2) A description of the commitment of the community to 
        the strategic plan over the long term and the participation and 
        input of groups affected by economic dislocation.
            ``(3) A description of the projects to be undertaken by the 
        eligible community.
            ``(4) A description of how the plan and the projects to be 
        undertaken by the eligible community will lead to job creation 
        and job retention in the community.
            ``(5) A description of how the plan will achieve economic 
        adjustment and diversification.
            ``(6) A description of how the plan and the projects will 
        contribute to establishing or maintaining a level of public 
        services necessary to attract and retain economic investment.
            ``(7) A description and justification for the cost and 
        timing of proposed basic and advanced infrastructure 
        improvements in the eligible community.
            ``(8) A description of how the plan will address the 
        occupational and workforce conditions in the eligible 
        community.
            ``(9) A description of the educational programs available 
        for workforce training and future employment needs.
            ``(10) A description of how the plan will adapt to changing 
        markets and business cycles.
            ``(11) A description and justification for the cost and 
        timing of the total funds required by the community for 
        economic assistance.
            ``(12) A graduation strategy through which the eligible 
        community demonstrates that the community will terminate the 
        need for Federal assistance.
    ``(c) Grants to Develop Strategic Plans.--The Secretary, upon 
receipt of an application from an eligible community, may award a grant 
to that community to be used to develop the strategic plan.
    ``(d) Submission of Plan.--A strategic plan developed under 
subsection (a) shall be submitted to the Secretary for evaluation and 
approval.

``SEC. 275. GRANTS FOR ECONOMIC DEVELOPMENT.

    ``(a) In General.--The Secretary, upon approval of a strategic plan 
from an eligible community, may award a grant to that community to 
carry out any project or program that is certified by the Secretary to 
be included in the strategic plan approved under section 274(d), or 
consistent with that plan.
    ``(b) Additional Grants.--
            ``(1) In general.--Subject to paragraph (2), in order to 
        assist eligible communities to obtain funds under Federal grant 
        programs, other than the grants provided for in section 274(c) 
        or subsection (a), the Secretary may, on the application of an 
        eligible community, make a supplemental grant to the community 
        if--
                    ``(A) the purpose of the grant program from which 
                the grant is made is to provide technical or other 
                assistance for planning, constructing, or equipping 
                public works facilities or to provide assistance for 
                public service projects; and
                    ``(B) the grant is 1 for which the community is 
                eligible except for the community's inability to meet 
                the non-Federal share requirements of the grant 
                program.
            ``(2) Use as non-federal share.--A supplemental grant made 
        under this subsection may be used to provide the non-Federal 
        share of a project, unless the total Federal contribution to 
        the project for which the grant is being made exceeds 80 
        percent and that excess is not permitted by law.
    ``(c) Rural Community Preference.--The Secretary shall develop 
guidelines to ensure that rural communities receive preference in the 
allocation of resources.

``SEC. 276. GENERAL PROVISIONS.

    ``(a) Regulations.--The Secretary shall prescribe such regulations 
as are necessary to carry out the provisions of this chapter. Before 
implementing any regulation or guideline proposed by the Secretary with 
respect to this chapter, the Secretary shall submit the regulation or 
guideline to the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives for approval.
    ``(b) Supplement not Supplant.--Funds appropriated under this 
chapter shall be used to supplement and not supplant other Federal, 
State, and local public funds expended to provide economic development 
assistance for communities.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $350,000,000 for each of fiscal years 
2005 through 2008, to carry out this chapter. Amounts appropriated 
pursuant to this subsection shall remain available until expended.''.
    (b) Conforming Amendments.--
            (1) Termination.--Section 285(b) of the Trade Act of 1974 
        (19 U.S.C. 2271 note) is amended by adding at the end the 
        following new paragraph:
            ``(3) Assistance for communities.--Technical assistance and 
        other payments may not be provided under chapter 4 after 
        September 30, 2008.''.
            (2) Table of contents.--The table of contents for title II 
        of the Trade Act of 1974 is amended by striking the items 
        relating to chapter 4 of title II and inserting after the items 
        relating to chapter 3 the following new items:

        ``Chapter 4--Trade Adjustment Assistance for Communities

``271. Definitions.
``272. Community Trade Adjustment Assistance Program.
``273. Certification and notification.
``274. Strategic plans.
``275. Grants for economic development.
``276. General provisions.''.
            (3) Judicial review.--Section 284(a) of the Trade Act of 
        1974 (19 U.S.C. 2395(a)) is amended by striking ``section 271'' 
        and inserting ``section 273''.
    (c) Effective Date.--The provisions of this section shall take 
effect on October 1, 2004.

SEC. 4. WAIVER OF DELIMITING PERIOD FOR EDUCATIONAL ASSISTANCE UNDER 
              THE MONTGOMERY GI BILL FOR VETERANS WHO FILE CLAIMS FOR 
              UNEMPLOYMENT COMPENSATION.

    Section 3031 of title 38, United States Code, is amended--
            (1) by redesignating subsection (h) as subsection (i);
            (2) by striking ``(b) through (g)'' in the matter preceding 
        paragraph (1) of subsection (a) and inserting ``(b) through 
        (h)''; and
            (3) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h)(1) In the case of a qualified individual (described in 
paragraph (2)), the 10-year period described in subsection (a) for the 
use of entitlement under this chapter shall not apply.
    ``(2) A qualified individual referred to in paragraph (1) is an 
individual--
            ``(A) with respect to whom, the 10-year period described in 
        subsection (a) has expired;
            ``(B) who, on the last day of such 10-year period, had 
        remaining entitlement to educational assistance under this 
        chapter; and
            ``(C) who demonstrates to the Secretary that the individual 
        has filed a claim for benefits under a State unemployment 
        compensation law on or after the date of the enactment of this 
        subsection.
    ``(3) A qualified individual may only use entitlement to 
educational assistance for programs of education pursued on or after 
the date the individual files an application referred to in paragraph 
(2)(C).''.

SEC. 5. INCREASE IN CREDIT AMOUNT OF HEALTH INSURANCE COSTS OF ELIGIBLE 
              INDIVIDUALS.

    (a) In General.--Section 35(a) of the Internal Revenue Code of 1986 
is amended by striking ``65 percent'' and inserting ``100 percent''.
    (b) Conforming Amendment.--Section 7527(b) of such Code is amended 
by striking ``65 percent of''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments after December 31, 2003.

SEC. 6. UNLIMITED PENALTY-FREE DISTRIBUTIONS FROM QUALIFIED RETIREMENT 
              PLANS TO INDIVIDUALS AFTER SEPARATION FROM EMPLOYMENT.

    (a) Unlimited Penalty-Free Distributions to Unemployed 
Individuals.--Clause (i) of section 72(t)(2)(D) of the Internal Revenue 
Code of 1986 is amended to read as follows:
                            ``(i) In general.--Distributions from a 
                        qualified retirement plan to an individual 
                        after separation from employment--
                                    ``(I) if the individual has 
                                received unemployment compensation for 
                                12 consecutive weeks under any Federal 
                                or State unemployment compensation law 
                                by reason of such separation, and
                                    ``(II) if such distributions are 
                                made during any taxable year during 
                                which such unemployment compensation is 
                                paid or the succeeding taxable year.''.
    (b) Conforming Amendment.--The heading for subparagraph (D) of 
section 72(t)(2) of such Code is amended in the heading by striking 
``for health insurance premiums''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions after December 31, 2003.
                                 <all>