[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4156 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4156

     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

                            October 27, 2005

   Mr. Smith of Washington (for himself, Mr. Rangel, Mr. Cardin, Mr. 
Stark, Mr. Levin, Mr. McDermott, Mr. McNulty, Mr. Jefferson, Mrs. Jones 
 of Ohio, Mr. Emanuel, Mrs. Tauscher, Mr. Kind, Mr. Davis of Alabama, 
Mr. Ackerman, Mr. Allen, Mr. Baird, Ms. Baldwin, Ms. Bean, Mr. Berman, 
Mr. Blumenauer, Mr. Boren, Mr. Boucher, Mr. Cardoza, Mr. Carnahan, Mr. 
 Case, Mr. Costello, Mr. Crowley, Ms. DeLauro, Mr. Dicks, Mr. Dingell, 
  Mr. Engel, Mr. Etheridge, Ms. Eshoo, Mr. Ford, Mr. Gonzalez, Mr. Al 
Green of Texas, Mr. Gene Green of Texas, Mr. Grijalva, Ms. Harman, Ms. 
 Herseth, Mr. Higgins, Mr. Hinojosa, Mr. Holden, Ms. Hooley, Mr. Holt, 
    Mr. Inslee, Ms. Eddie Bernice Johnson of Texas, Mr. Kildee, Ms. 
 Kilpatrick of Michigan, Mr. Larsen of Washington, Ms. Lee, Mr. Lynch, 
Mrs. Maloney, Mr. Matheson, Ms. Matsui, Mrs. McCarthy, Ms. McCollum of 
   Minnesota, Mr. McIntyre, Mr. Meeks of New York, Mr. Michaud, Ms. 
Millender-McDonald, Mr. Miller of North Carolina, Mr. George Miller of 
  California, Mr. Nadler, Mr. Owens, Mr. Price of North Carolina, Mr. 
  Ryan of Ohio, Ms. Linda T. Sanchez of California, Mr. Sanders, Mr. 
  Snyder, Ms. Solis, Mr. Strickland, Mr. Van Hollen, Mr. Wexler, Ms. 
Schwartz of Pennsylvania, and Mr. Ross) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
to the Committees on Education and the Workforce, Energy and Commerce, 
 and Government Reform, 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 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 
Improvement Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Furthering trade and economic engagement with other 
        nations is a necessary, but not sufficient, component of a long 
        term strategy to grow the United States economy and promote 
        American competitiveness in the global economy.
            (2) A comprehensive strategy for economic growth and 
        competitiveness of the United States must--
                    (A) build a strong framework of rules for 
                international trade;
                    (B) open substantial new markets for American 
                goods, services, and farm products in order to level 
                the playing field for American workers in all sectors 
                of the economy; and
                    (C) establish a comprehensive framework to provide 
                training and education to Americans throughout their 
                lives so that they may take full advantage of the 
                opportunities of the global economy and adjust to 
                changing technological demands.
            (3) The Trade Adjustment Assistance program provided for 
        under the Trade Act of 1974 forms a critical component of this 
        comprehensive strategy for American competitiveness, by helping 
        hard-working Americans transition to the global economy and 
        adjust to economic changes resulting from the trade policy of 
        the United States.
            (4) As currently structured, however, the Trade Adjustment 
        Assistance program fails to ensure that all workers negatively 
        affected by trade have access to the assistance they need to 
        compete in the global economy, as service workers are excluded 
        entirely from the program, a lack of adequate funding for 
        training leaves many dislocated workers without timely access 
        to the training they need to find jobs, and unnecessary and 
        burdensome hurdles prevent eligible workers from gaining access 
        to benefits for which they are eligible.

SEC. 3. 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 
``agricultural 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''; and
                            (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, testing, packaging, or 
                        maintenance or transportation services'';
                            (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 subsections:
    ``(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.
    ``(e) Additional Information.--In determining whether to certify a 
group of workers under subsection (a) or (b) pursuant to a petition 
filed under section 221, the Secretary should contact officials of 
firms and unions, employees, and any other persons, government agencies 
(whether Federal or State), or organizations, both public and private, 
as appropriate, in order to confirm information furnished in the 
petition and to elicit other relevant information.''.
    (c) Training.--
            (1) Funding.--Section 236(a)(2)(A) of the Trade Act of 1974 
        (19 U.S.C. 2296(a)(2)(A)) is amended by striking ``for any 
        fiscal year shall not exceed $220,000,000.'' and inserting 
        ``shall not exceed--
            ``(i) $440,000,000 in each of fiscal years 2006 and 2007;
            ``(ii) $484,000,000 in fiscal year 2008;
            ``(iii) $528,000,000 in fiscal year 2009;
            ``(iv) $572,000,000 in fiscal year 2010;
            ``(v) $616,000,000 in fiscal year 2011; and
            ``(vi) $660,000,000 in fiscal year 2012.''.
            (2) Report on allocation of training funds.--The 
        Comptroller General shall, not later than 6 months after the 
        date of the enactment of this Act, evaluate and report to the 
        Congress on the effectiveness of the mechanism for allocating 
        training funds between the States and among individuals under 
        section 236(a)(2) of the Trade Act of 1974. The report shall 
        contain--
                    (A) an evaluation of the adequacy of total funding 
                for training of adversely affected workers eligible for 
                trade adjustment assistance under chapter 2 of title II 
                of the Trade Act of 1974, and the extent to which the 
                allocation mechanism provides States and individuals 
                with sufficient training funds to meet the needs of all 
                such eligible workers; and
                    (B) recommendations for improving the allocation of 
                training funds to States and individuals under section 
                236(a)(2) of the Trade Act of 1974.
    (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; and
            (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. 4. 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. 5. ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE.

    Section 246 of the Trade Act of 1974 (19 U.S.C. 2318) is amended--
            (1) by striking subsection (b); and
            (2) in subsection (a)--
                    (A) by striking ``(a) In General.--'';
                    (B) in paragraph (1)--
                            (i) by designating that paragraph as 
                        subsection (a) and moving the text 2 ems to the 
                        left; and
                            (ii) by striking ``paragraph (2)'' and 
                        inserting ``subsection (b)''; and
                    (C) by striking paragraphs (2) through (5) and 
                inserting the following:
    ``(b) Benefits.--
            ``(1) 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 subsection (c)(2), 50 percent 
        of the difference between--
                    ``(A) the wages received by the worker from 
                reemployment; and
                    ``(B) the wages received by the worker at the time 
                of separation.
            ``(2) Health insurance.--A worker described in subsection 
        (c)(2) participating in the program established under 
        subsection (a) 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.
    ``(c) Eligibility.--A group of workers certified under subchapter A 
as eligible for adjustment assistance under subchapter A is eligible 
for the alternative trade adjustment assistance program under this 
section. A worker in such a group may elect to receive benefits under 
the alternative trade adjustment assistance program if the worker--
            ``(1) obtains reemployment not more than 26 weeks after the 
        date of separation from the adversely affected employment;
            ``(2) is at least 50 years of age;
            ``(3) earns not more than $50,000 each year in wages from 
        reemployment;
            ``(4) is employed on a full-time basis as defined by State 
        law in the State in which the worker is employed; and
            ``(5) does not return to the employment from which the 
        worker was separated.
    ``(d) Total Amount of Payments.--The payments described in 
subsection (b)(1) made to a worker may not exceed $10,000 per worker 
during the 2-year eligibility period.
    ``(e) 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 subsection (a), the worker shall not be eligible to 
receive any other benefits under this title.''.

SEC. 6. 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. 7. 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 Improvement Act, the Secretary of Labor shall 
        implement a system to collect data on all adversely affected 
        workers who apply for or receive adjustment assistance under 
        this chapter, including--
                    ``(i) the following information, classified by 
                State, by industry, and by total number:
                            ``(I) the number of petitions filed, 
                        certified, and denied;
                            ``(II) the number of workers covered by the 
                        petitions filed, certified, and denied;
                            ``(III) a breakdown of the number of 
                        certified petitions by the cause of dislocation 
                        (that is, increase in imports, shift in 
                        production, and other causes for eligibility 
                        for adjustment assistance under this chapter);
                            ``(IV) the number of workers receiving 
                        adjustment assistance under this chapter;
                            ``(V) reemployment rates for workers 
                        receiving adjustment assistance under this 
                        chapter; and
                            ``(VI) wage replacement rates for workers 
                        receiving adjustment assistance under this 
                        chapter; and
                    ``(ii) the following information, classified by 
                State and by total number:
                            ``(I) the presence of a collective 
                        bargaining agreement among workers covered by 
                        petitions filed, certified, and denied;
                            ``(II) the type of adjustment assistance 
                        received under this chapter (that is, training 
                        or education assistance, alternative trade 
                        adjustment assistance, cash benefits, health 
                        insurance tax credits, relocation allowances, 
                        and job search allowances), the number of 
                        workers receiving each type of assistance, the 
                        average dollar amount of benefits received per 
                        worker for each type of assistance, and the 
                        average duration of time workers receive each 
                        type of assistance;
                            ``(III) the fields of training or education 
                        in which workers receiving training or 
                        education benefits under this chapter are 
                        enrolled, and the number of workers 
                        participating in each field;
                            ``(IV) the number of workers completing a 
                        course of training or education;
                            ``(V) the number of workers failing to 
                        complete a course of training or education, 
                        classified by the cause for early termination; 
                        and
                            ``(VI) the number of training waivers 
                        granted.
            ``(B) The Secretary shall make the data collected under 
        subparagraph (A) publicly available on the website of the 
        Department of Labor, in a format that allows searching of the 
        data by category, and shall update the data at least every 6 
        months.
            ``(C) 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. 8. EXTENSION OF TAA PROGRAM.

    (a) For Workers.--Section 245(a) of the Trade Act of 1974 (19 
U.S.C. 2317(a)) is amended by striking ``2007'' and inserting ``2012''.
    (b) For Firms.--Section 256(b) of the Trade Act of 1974 (19 U.S.C. 
2346(b)) is amended by striking ``2007'' and inserting ``2012''.
    (c) Termination.--Section 285 of the Trade Act of 1974 (19 U.S.C. 
2271 note) is amended by striking ``2007'' each place it appears and 
inserting ``2012''.

SEC. 9. CALCULATION OF SEPARATION TOLLED DURING LITIGATION.

    Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended by 
adding at the end the following:
    ``(h) Special Rule for Calculating Separation.--Notwithstanding any 
other provision of this chapter, any period during which an appeal in 
an administrative or judicial proceeding is pending with respect to the 
denial by the Secretary of a petition under section 223 shall not be 
counted for purposes of calculating the period of separation under 
subsection (a)(2), and an adversely affected worker that would 
otherwise be entitled to a trade adjustment allowance shall not be 
denied such allowance because of such appeal.''.

SEC. 10. OTHER METHODS OF REQUESTING INVESTIGATION.

    Section 221 of the Trade Act of 1974 (19 U.S.C. 2271) is amended--
            (1) by adding at the end the following:
    ``(c) Other Methods of Initiating a Petition.--
            ``(1) In general.--Upon the request of the President or the 
        United States Trade Representative, or the resolution of either 
        the Committee on Ways and Means of the House of Representatives 
        or the Committee on Finance of the Senate, the Secretary shall 
        promptly initiate an investigation under this chapter to 
        determine the eligibility for adjustment assistance of--
                    ``(A) a group of workers (which may include workers 
                from more than one facility or employer); or
                    ``(B) all workers in an occupation as that 
                occupation is defined in the Bureau of Labor Statistics 
                Standard Occupational Classification System.
            ``(2) Publication.--Upon making a determination of the 
        eligibility for adjustment assistance under this chapter of a 
        group of workers or all workers in an occupation, the Secretary 
        shall promptly publish a summary of the determination, together 
        with a summary of the basis for the determination, in the 
        Federal Register and on the website of the Department of 
        Labor.'';
            (2) in subsection (a)(2), by inserting ``or a request or 
        resolution filed under subsection (c),'' after ``paragraph 
        (1),''; and
            (3) in subsection (a)(3), by inserting ``, request, or 
        resolution'' after ``petition'' each place it appears.

SEC. 11. NOTIFICATION.

    Section 224 of the Trade Act of 1974 (19 U.S.C. 2274) is amended to 
read as follows:

``SEC. 224. NOTIFICATIONS REGARDING AFFIRMATIVE DETERMINATIONS AND 
              SAFEGUARDS.

    ``(a) Notifications Regarding Chapter 1 Investigations and 
Determinations.--Whenever the International Trade Commission makes a 
report under section 202(f) containing an affirmative finding regarding 
serious injury, or the threat thereof, to a domestic industry, the 
Commission shall immediately--
            ``(1) notify the Secretary of Labor of that finding; and
            ``(2) in the case of a finding with respect to an 
        agricultural commodity, as defined in section 291, notify the 
        Secretary of Agriculture of that finding.
    ``(b) Notification Regarding Bilateral Safeguards.--The 
International Trade Commission shall immediately notify the Secretary 
of Labor and, in an investigation with respect to an agricultural 
commodity, the Secretary of Agriculture, whenever the Commission makes 
an affirmative determination pursuant to one of the following 
provisions:
            ``(1) Section 421 of this Act (19 U.S.C. 2451).
            ``(2) Section 312 of the United States-Australia Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(3) Section 312 of the United States-Morocco Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(4) Section 312 of the United States-Singapore Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(5) Section 312 of the United States-Chile Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(6) Section 302(b) of the North American Free Trade 
        Agreement Implementation Act (19 U.S.C. 3352(b)).
            ``(7) Section 212 of the United States-Jordan Free Trade 
        Agreement Implementation Act (19 U.S.C. 2112 note).
            ``(8) Section 312 of the Dominican Republic-Central 
        America-United States Free Trade Agreement Implementation Act 
        (19 U.S.C. 3805 note).
    ``(c) Agricultural Safeguards.--The Commissioner of Customs shall 
immediately notify the Secretary of Labor and, in the case of an 
agricultural commodity, the Secretary of Agriculture, whenever the 
Commissioner of Customs assesses additional duties on a product 
pursuant to one of the following provisions:
            ``(1) Section 202 of the United States-Australia Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(2) Section 202 of the United States-Morocco Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(3) Section 201(c) of the United States-Chile Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(4) Section 309 of the North American Free Trade 
        Agreement Implementation Act (19 U.S.C. 3358).
            ``(5) Section 301(a) of the United States-Canada Free Trade 
        Agreement Implementation Act of 1988 (19 U.S.C. 2112 note).
            ``(6) Section 404 of the Trade and Tariff Act of 1984 (19 
        U.S.C. 2112 note).
            ``(7) Section 202 of the Dominican Republic-Central 
        America-United States Free Trade Agreement Implementation Act 
        (19 U.S.C. 3805 note).
    ``(d) Textile Safeguards.--The President shall immediately notify 
the Secretary of Labor whenever the President makes a positive 
determination pursuant to one of the following provisions:
            ``(1) Section 322 of the United States-Australia Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(2) Section 322 of the United States-Morocco Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(3) Section 322 of the United States-Chile Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(4) Section 322 of the United States-Singapore Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(5) Section 322 of the Dominican Republic-Central 
        America-United States Free Trade Agreement Implementation Act 
        (19 U.S.C. 3805 note).
    ``(e) Antidumping and Countervailing Duties.--Whenever the 
International Trade Commission makes a final affirmative determination 
pursuant to section 705 or section 735 of the Tariff Act of 1930 (19 
U.S.C. 1671d or 1673d), the Commission shall immediately notify the 
Secretary of Labor and, in the case of an agricultural commodity, the 
Secretary of Agriculture, of that determination.''.

SEC. 12. INDUSTRY-WIDE DETERMINATION.

    Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended by 
adding at the end the following:
    ``(e) Determination Regarding Industry-Wide Certification.--
            ``(1) Determination.--If the Secretary receives a request 
        or a resolution under section 221(c) on behalf of workers in a 
        domestic industry or occupation (described in section 
        221(c)(2)) or certifies 3 or more petitions under section 
        221(a) within a 180-day period on behalf of groups of workers 
        in a domestic industry or occupation, the Secretary shall make 
        an determination, under subsection (a) of this section, of the 
        eligibility of all adversely affected workers in that domestic 
        industry or occupation.
            ``(2) Publication.--Upon making a determination of the 
        eligibility for adjustment assistance under this chapter of a 
        group of workers or all workers in an industry or occupation 
        under paragraph (1), the Secretary shall promptly publish a 
        summary of the determination, together with a summary of the 
        basis for the determination, in the Federal Register and on the 
        website of the Department of Labor.''.

SEC. 13. COORDINATION WITH OTHER TRADE PROVISIONS.

    (a) Industry-Wide Certification Based on Global Safeguards.--
            (1) Recommendations by itc.--
                    (A) Section 202(e)(2)(D) of the Trade Act of 1974 
                (19 U.S.C. 2252(e)(2)(D)) is amended by striking ``, 
                including the provision of trade adjustment assistance 
                under chapter 2''.
                    (B) Section 203(a)(3)(D) of the Trade Act of 1974 
                (19 U.S.C. 2253(a)(3)(D)) is amended by striking ``, 
                including the provision of trade adjustment assistance 
                under chapter 2''.
            (2) Assistance for workers.--Paragraph (1)(A) of section 
        203(a) of the Trade Act of 1974 (19 U.S.C. 2253(a)(1)(A)) is 
        amended to read as follows:
            ``(1)(A) After receiving a report under section 202(f) 
        containing an affirmative finding regarding serious injury, or 
        the threat thereof, to a domestic industry--
                    ``(i) the President shall take all appropriate and 
                feasible action within his power; and
                    ``(ii)(I) the Secretary of Labor shall certify as 
                eligible to apply for adjustment assistance under 
                section 223 workers employed in the domestic industry 
                defined by the Commission if such workers become 
                totally or partially separated, or are threatened to 
                become totally or partially separated, not more than 1 
                year before, or not more than 1 year after, the date on 
                which the Commission made its report to the President 
                under section 202(f); and
                    ``(II) in the case of a finding with respect to an 
                agricultural commodity as defined in section 291, the 
                Secretary of Agriculture shall certify as eligible to 
                apply for adjustment assistance under section 293 
                agricultural commodity producers employed in the 
                domestic production of the agricultural commodity that 
                is the subject of the finding during the most recent 
                marketing year.''.
    (b) Industry-Wide Certification Based on Bilateral Safeguard 
Provisions or Antidumping or Countervailing Duty Orders.--
            (1) In general.--Subchapter A of chapter 1 of title II of 
        the Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by 
        inserting after section 224 the following new section:

``SEC. 224A. INDUSTRY-WIDE CERTIFICATION WHERE BILATERAL SAFEGUARD 
              PROVISIONS INVOKED OR ANTIDUMPING OR COUNTERVAILING 
              DUTIES IMPOSED.

    ``(a) In General.--Not later than 10 days after the date on which 
the Secretary of Labor receives a notification with respect to the 
imposition of a trade remedy, safeguard determination, or antidumping 
or countervailing duty determination under section 224 (a), (b), (c), 
(d), or (e), the Secretary shall certify as eligible for trade 
adjustment assistance under section 223(a) workers employed in the 
domestic production of the article that is the subject of the trade 
remedy, safeguard determination, or antidumping or countervailing duty 
determination, as the case may be, if such workers become totally or 
partially separated, or are threatened to become totally or partially 
separated, not more than 1 year before, or not more than 1 year after, 
the applicable date.
    ``(b) Applicable Date.--In this section, the term `applicable date' 
means--
            ``(1) the date on which the affirmative or positive 
        determination or finding is made, in the case of a notification 
        under section 224 (a), (b), or (d);
            ``(2) the date on which a final determination is made, in 
        the case of a notification under section 224(e); or
            ``(3) the date on which additional duties are assessed, in 
        the case of a notification under section 224(c).''.
            (2) Agricultural commodity producers.--Chapter 6 of title 
        II of the Trade Act of 1974 (19 U.S.C. 2401 et seq.) is amended 
        by striking section 294 and inserting the following:

``SEC. 294. INDUSTRY-WIDE CERTIFICATION FOR AGRICULTURAL COMMODITY 
              PRODUCERS WHERE SAFEGUARD PROVISIONS INVOKED OR 
              ANTIDUMPING OR COUNTERVAILING DUTIES IMPOSED.

    ``Not later than 10 days after the date on which the Secretary of 
Agriculture receives a notification with respect to the imposition of a 
trade remedy, safeguard determination, or antidumping or countervailing 
duty determination under section 224 (b), (c), or (e), the Secretary 
shall certify as eligible for trade adjustment assistance under section 
293(a) agricultural commodity producers employed in the domestic 
production of the agricultural commodity that is the subject of the 
trade remedy, safeguard determination, or antidumping or countervailing 
duty determination, as the case may be, during the most recent 
marketing year.''.
    (c) Conforming Amendments.--The table of contents for title II of 
the Trade Act of 1974 is amended--
            (1) by striking the item relating to section 224 and 
        inserting the following:

``224. Notifications regarding affirmative determinations and 
                            safeguards.'';
            (2) by inserting after the item relating to section 224 the 
        following:

``224A. Industry-wide certification based on bilateral safeguard 
                            provisions invoked or antidumping or 
                            countervailing duties imposed.''
; and
            (3) by striking the item relating to section 294 and 
        inserting the following:

``294. Industry-wide certification for agricultural commodity producers 
                            where safeguard provisions invoked or 
                            antidumping or countervailing duties 
                            imposed.''.

SEC. 14. PUBLIC AVAILABILITY OF INFORMATION.

    Subsections (c) and (d) of section 223 of the Trade Act of 1974 (19 
U.S.C. 2273(c) and (d)) are each amended by inserting ``and on the 
website of the Department of Labor,'' after ``Federal Register''.

SEC. 15. TRADE ADJUSTMENT ASSISTANCE ADVISOR.

    There is established in the Department of Labor an office to be 
known as the Office of the Trade Adjustment Assistance Advisor. The 
Office shall be headed by a Director appointed by the Secretary of 
Labor, who shall be responsible for the operation of a telephone 
hotline that workers, employers, and other entities may call to obtain 
information regarding eligibility criteria, procedural requirements, 
and benefits available under chapter 2 of title II of the Trade Act of 
1974. The Director shall also coordinate with State agencies 
responsible for administering benefits under such chapter in order to 
ensure that the States are complying with their obligations under such 
chapter.

SEC. 16. AGREEMENTS WITH STATES.

    Section 239(a) of the Trade Act of 1974 (19 U.S.C. 2311(a)) is 
amended by striking ``and (4)'' and inserting ``(4) will use personnel 
standards on a merit basis in the administration of services and 
payment of benefits to adversely affected workers under this chapter, 
and (5)''.

SEC. 17. GAO STUDY.

     The Comptroller General shall, not later than 6 months after the 
date of the enactment of this Act, conduct, and submit to the Congress 
a report on, a study evaluating the extent to which--
            (1) States are meeting each of the obligations set forth in 
        sections 239(f) and 221(a)(2)(A) of the Trade Act of 1974; and
            (2) the Secretary of Labor is meeting each of the 
        obligations set forth in section 225 of the Trade Act of 1974.
If the Comptroller General finds that any of the obligations referred 
to in paragraphs (1) and (2) are not being met, the Comptroller General 
shall include in the report an analysis of the reasons for such 
noncompliance.

SEC. 18. REGULATIONS.

    The Secretary of the Treasury, the Secretaries of Agriculture and 
Labor, and the International Trade Commission may promulgate such 
regulations as may be necessary to carry out the amendments made by 
sections 3 through 16.

SEC. 19. MODIFICATIONS RELATING TO CREDIT FOR HEALTH INSURANCE COSTS OF 
              CERTAIN TAA AND PBGC PENSION RECIPIENTS.

    (a) Increase in Credit Percentage Amount.--
            (1) In general.--Subsection (a) of section 35 of the 
        Internal Revenue Code of 1986 is amended by striking ``65 
        percent'' and inserting ``80 percent (100 percent in the case 
        of the taxpayer's first eligible coverage month)''.
            (2) Conforming amendment.--Subsection (b) of section 7527 
        of such Code is amended by striking ``65 percent'' and 
        inserting ``80 percent (100 percent in the case of the 
        taxpayer's first eligible coverage month)''.
    (b) Presumptive Status as a TAA Recipient.--
            (1) In general.--Subsection (c) of section 35 of such Code 
        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 earlier of--
                                    ``(I) the end of the 90-day period 
                                beginning on the date that such 
                                petition is so filed,
                                    ``(II) the date that the Secretary 
                                of Labor makes a final determination 
                                not to issue a certification with 
                                respect to such petition, or
                                    ``(III) the beginning of the first 
                                month that such individual is an 
                                eligible individual without regard to 
                                this paragraph.
                    ``(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 amendments.--
                    (A) 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) Section 173(f)(4) of the Workforce Investment 
                Act of 1998 (29 U.S.C. 2918(f)(4)) is amended by 
                striking ``and'' at the end of subparagraph (B), by 
                striking the period at the end of subparagraph (C) and 
                inserting ``, and'', and by inserting after 
                subparagraph (C) the following new subparagraph:
                    ``(D) an individual who is an eligible individual 
                by reason of section 35(c)(5) of the Internal Revenue 
                Code of 1986.''.
    (c) Restrictions on Individual Market Coverage.--
            (1) Individual coverage not treated as qualified health 
        insurance.--
                    (A) In general.--Paragraph (1) of section 35(e) of 
                such Code is amended by striking subparagraph (J).
                    (B) Conforming amendment.--Subparagraph (A) of 
                section 173(f)(2) of the Workforce Investment Act of 
                1998 (29 U.S.C. 2918(f)(2)) is amended by striking 
                clause (x).
            (2) Rating system requirement for certain state-based 
        coverage.--
                    (A) In general.--Subparagraph (A) of section 
                35(e)(2) of such Code is amended by adding at the end 
                the following new clause:
                            ``(v) Rating system requirement.--In the 
                        case of coverage described in paragraph 
                        (1)(F)(ii), the premiums for such coverage are 
                        restricted based on a community rating system 
                        or based on a rate-band system under which the 
                        maximum rate which may be charged does not 
                        exceed 150 percent of the standard rate.''.
                    (B) Conforming amendment.--Clause (i) of section 
                173(f)(2)(B) of the Workforce Investment Act of 1998 
                (29 U.S.C. 2918(f)(2)(B)) is amended by adding at the 
                end the following new subclause:
                                    ``(V) Rating system requirement.--
                                In the case of coverage described in 
                                subparagraph (A)(vi)(II), the premiums 
                                for such coverage are restricted based 
                                on a community rating system or based 
                                on a rate-band system under which the 
                                maximum rate which may be charged does 
                                not exceed 150 percent of the standard 
                                rate.''.
    (d) Modification of Creditable Coverage Requirement.--
            (1) In general.--Subparagraph (B) of section 35(e)(2) of 
        such Code is amended to read as follows:
                    ``(B) Qualifying individual.--For purposes of this 
                paragraph, the term `qualifying individual' means an 
                eligible individual and the qualifying family members 
                of such individual if such individual meets the 
                requirements of clauses (iii) and (iv) of subsection 
                (b)(1)(A) and--
                            ``(i) in the case of an eligible TAA 
                        recipient, an eligible alternative TAA 
                        recipient, or an individual who is an eligible 
                        individual by reason of subsection (c)(5), has 
                        (as of the date on which the individual seeks 
                        to enroll in the coverage described in 
                        subparagraphs (B) through (H) of paragraph (1)) 
                        a period of creditable coverage (as defined in 
                        section 9801(c)), or
                            ``(ii) in the case of an eligible PBGC 
                        pension recipient, enrolls in such coverage 
                        during the 90-day period beginning on the later 
                        of--
                                    ``(I) the last day of the first 
                                month with respect to which such 
                                recipient becomes an eligible PBGC 
                                pension recipient, or
                                    ``(II) the date of the enactment of 
                                the Trade Adjustment Assistance 
                                Improvement Act.''.
            (2) Conforming amendment.--Clause (ii) of section 
        172(f)(2)(B) of the Workforce Investment Act of 1998 (29 U.S.C. 
        2918(f)(2)(B)) is amended to read as follows:
                            ``(ii) Qualifying individual.--For purposes 
                        of this subparagraph, the term `qualifying 
                        individual' means an eligible individual and 
                        the qualifying family members of such 
                        individual if such individual meets the 
                        requirements of clauses (iii) and (iv) of 
                        section 35(b)(1)(A) of the Internal Revenue 
                        Code of 1986 and--
                                    ``(I) in the case of an eligible 
                                TAA recipient, an eligible alternative 
                                TAA recipient, or an individual who is 
                                an eligible individual by reason of 
                                section 35(c)(5) of such Code, has (as 
                                of the date on which the individual 
                                seeks to enroll in the coverage 
                                described in clauses (ii) through 
                                (viii) of subparagraph (A)) a period of 
                                creditable coverage (as defined in 
                                section 9801(c) of such Code), or
                                    ``(II) in the case of an eligible 
                                PBGC pension recipient, enrolls in such 
                                coverage during the 90-day period 
                                beginning on the later of--
                                            ``(aa) the last day of the 
                                        first month with respect to 
                                        which such recipient becomes an 
                                        eligible PBGC pension 
                                        recipient, or
                                            ``(bb) the date of the 
                                        enactment of the Trade 
                                        Adjustment Assistance 
                                        Improvement Act.''.
            (3) 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)(2)(B)(ii) of such section.
    (e) Continued Qualification of Family Members After Certain 
Events.--
            (1) In general.--Subsection (g) of section 35 of such Code 
        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 
        certain events.--In the case of a month which would be an 
        eligible coverage month with respect to an eligible individual 
        but for a qualifying event with respect to such individual 
        (within the meaning of section 4980B(f)(3)), such month shall 
        be treated as an eligible coverage month with respect to any 
        qualifying family member of such eligible individual for a 
        period of months not to exceed the period of months described 
        in section 4980B(f)(2)(B) with respect to such qualifying 
        event.''.
            (2) Conforming amendment.--Section 173(f) of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding 
        at the end the following:
            ``(8) Continued qualification of family members after 
        certain events.--In the case of a month which would be an 
        eligible coverage month with respect to an eligible individual 
        but for a qualifying event with respect to such individual 
        (within the meaning of section 4980B(f)(3) of the Internal 
        Revenue Code of 1986), such month shall be treated as an 
        eligible coverage month with respect to any qualifying family 
        member of such eligible individual for a period of months not 
        to exceed the period of months described in section 
        4980B(f)(2)(B) of such Code with respect to such qualifying 
        event.''.
    (f) TAA Pre-Certification Period Rule for Purposes of Determining 
Whether There Is a 63-Day Lapse in Creditable Coverage.--
            (1) IRC amendment.--Section 9801(c)(2) of the Internal 
        Revenue Code of 1986 (relating to not counting periods before 
        significant breaks in creditable coverage) is amended by adding 
        at the end the following new subparagraph:
                    ``(D) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date which is 5 days after the postmark 
                        date of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 shall 
                        not be taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 4980B(f)(5)(C)(iv).''.
            (2) ERISA amendment.--Section 701(c)(2) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) 
        is amended by adding at the end the following new subparagraph:
                    ``(C) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date that is 5 days after the postmark date 
                        of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 of the 
                        Internal Revenue Code of 1986 shall not be 
                        taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 605(b)(4)(c).''.
            (3) PHSA amendment.--Section 2701(c)(2) of the Public 
        Health Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding 
        at the end the following new subparagraph:
                    ``(C) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date that is 5 days after the postmark date 
                        of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 of the 
                        Internal Revenue Code of 1986 shall not be 
                        taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 2205(b)(4)(c).''.
    (g) Offering of National Fallback Coverage.--
            (1) Provision of fallback coverage.--The Director of the 
        Office of Personnel Management jointly with the Secretary of 
        the Treasury shall establish a program under which eligible 
        individuals (as defined in section 35(c) of the Internal 
        Revenue Code of 1986) are offered enrollment under health 
        benefit plans that are made available under FEHBP.
            (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--
                    (A) shall be equal to the full premium (including 
                both employer and beneficiary share) charged for such 
                coverage determined in the same manner, subject to 
                subparagraph (B), it is determined for full-time 
                employees; and
                    (B) shall be determined for the pool of individuals 
                covered under this subsection, separately from the pool 
                of individuals otherwise covered 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 amendments.--
                    (A) 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 17(g) of the Trade Adjustment Assistance 
                Improvement Act.''.
                    (B) Section 173(f)(2)(A) of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2918(f)(2)(A)) is 
                amended by adding at the end the following new clause:
                            ``(xi) Coverage under a health benefits 
                        plan offered under section 17(g) of the Trade 
                        Adjustment Assistance Improvement Act.''.
    (h) 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.
    (i) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), 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.
            (2) Grandfathering of individual coverage rules for current 
        recipients.--The amendments made by subsection (c) shall not 
        apply with respect to any eligible individual (or qualifying 
        family members with respect to such individual) for any month 
        if such individual was an eligible individual for all previous 
        months which began after the date of the enactment of this Act 
        and was enrolled in coverage described in section 35(e)(1)(J) 
        of such Code (as in effect immediately before the date of the 
        enactment of this Act) for all such previous months.
                                 <all>