[Congressional Record Volume 145, Number 54 (Tuesday, April 20, 1999)]
[Extensions of Remarks]
[Page E695]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 TRADE ADJUSTMENT ASSISTANCE REFORM ACT

                                 ______
                                 

                         HON. ROBERT T. MATSUI

                             of california

                    in the house of representatives

                        Tuesday, April 20, 1999

  Mr. MATSUI. Mr. Speaker, joined by my colleague, Mr. Bonior, today I 
introduce the Trade Adjustment Assistance Reform Act of 1999. This 
legislation will expand the safety net for American workers by 
reauthorizing and improving existing adjustment programs for workers 
who are adversely impacted by trade. It combines the best features of 
the existing Trade Adjustment Assistance (TAA) and the NAFTA 
Transitional Adjustment Assistance (NAFTA-TAA) programs into a 
consolidated TAA program and improves the effectiveness and timeliness 
of services provided to American workers hurt by international trade.
  The bill would authorize the consolidated TAA program for 5 years 
through fiscal year 2004. Most importantly, the consolidated program 
would expand eligibility to workers who lose their jobs due to shifts 
in production by their firm to other countries. Currently, TAA 
eligibility is restricted to workers hurt by imports and NAFTA-TAA is 
limited to workers adversely affected by imports from, or shifts in 
production to, Mexico or Canada only. Our bill will ensure that 
comprehensive assistance is available to workers who lose their jobs 
due to imports from, or shifts in production to, any foreign country.
  The legislation also ensures that rapid response and basic 
readjustment services will be made available to workers upon the filing 
of a petition for TAA eligibility. These services are critical to 
facilitating rapid reemployment of workers and providing important 
information relating to the resources available at the Federal, State, 
and local level to assist them. The measure also requires a one-third 
reduction in the time period for the Department of Labor to process 
eligibility petitions under TAA in order to ensure that benefits are 
made available to trade-impacted workers as soon as possible after 
their displacement. To ensure that these workers get the assistance 
they need, the bill provides a much-needed increase in the annual cap 
on training expenditures to $150 million; a portion of which supports 
the training costs associated with the expanded ``shift in production'' 
provision, and a portion of which is needed to fund the significant 
increase in program caseload currently being experienced.
  The legislation also harmonizes the differing rules of the current 
programs relating to requiring enrollment in training as a condition 
for receiving income support. The new rules retain the program's 
emphasis on linking income support to training but permit specified 
exceptions where appropriate to assist certain workers. In addition, 
the bill would reduce the hardship currently experienced by workers who 
attend community colleges by expanding the period for scheduled breaks 
in a training program during which a worker may continue to receive 
income support.
  In keeping with an increased emphasis on integrated service delivery, 
the legislation seeks to enhance coordination between the consolidated 
TAA program and the dislocated worker program under the recently-
enacted Workforce Investment Act. In particular, the bill would 
significantly improve the accountability of the consolidated program by 
ensuring that TAA and the dislocated worker program have common 
performance outcome measures; i.e. information on the placement in 
employment, earnings, and retention of employment by participants.
  The legislation also assures that information will be collected and 
maintained that identifies the countries to which production is shifted 
to and, to the extent practical, from which articles are imported. This 
will include information on the number of certifications relating to 
imports from, or shifts in production to, Mexico or Canada--which will 
assist in making eligibility determinations under related NAFTA 
programs and in assessing the adequacy of the consolidated program.
  In addition, this legislation provides for the extension of the Trade 
Adjustment Assistance for Firms Program administered by the Department 
of Commerce under chapter 3 of title II of the Trade Act of 1974. And 
finally, the bill establishes a Presidential Commission on Workers and 
Economic Change in the New Economy to make further recommendations on 
program improvements.
  Mr. Speaker, while much of the country is enjoying a booming economy, 
there are geographic areas and industries which are experiencing 
significant worker dislocation. It is critical that the Congress 
support programs that give workers the tools they need to find and 
prepare for good-paying jobs in the new economy. One of the important 
ways we can begin to develop a broad consensus on trade policy is to 
address the negative consequences of globalization by reaffirming and 
improving on our longstanding commitment to assist workers impacted by 
trade. I urge my colleagues to join in supporting these reforms.

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