[Congressional Record Volume 148, Number 52 (Wednesday, May 1, 2002)]
[Senate]
[Pages S3639-S3688]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3383. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill H.R. 3009, to extend the Andean Trade Preference 
Act, to grant additional trade benefits under that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place in the bill, insert the following:

     SEC. ____. CONDITIONS ON ANY SUSPENSION OF IMMIGRATION 
                   PROCESSING OF ALIEN ORPHANS.

       (a) Requirements of the Department of Justice.--
       (1) Report to congress.--Neither the Commissioner nor any 
     other official of the Department of Justice shall suspend, 
     with respect to a country, the processing of petitions for 
     classification of natives of that country as alien orphans, 
     unless the Attorney General first submits a report to each 
     House of Congress, in accordance with subsection (c), 
     containing the following:
       (A) Certification required.--A certification that the 
     Commissioner or other official of the Department of Justice, 
     as appropriate, has determined, based upon clear and 
     convincing evidence, that one or more of the following 
     circumstances is applicable with respect to that country:
       (i) Inadequate ins processing system.--The system of the 
     Immigration and Naturalization Service in that country for 
     the processing of petitions for the classification of natives 
     of that country as alien orphans is wholly inadequate, and as 
     a result the Service is unable to make the determinations 
     described in section 101(b)(1) (F) or (G) of the Immigration 
     and Nationality Act (8 U.S.C. 1101(b)(1) (F) or (G).
       (ii) Sending country adoption system compromised.--The 
     system utilized by the sending country for the arrangement of 
     international adoptions of alien orphans who are natives of 
     that country has been compromised to the extent that 
     processing cases according to the requirements of the 
     Immigration and Nationality Act is no longer possible.
       (iii) Failure to obtain birth parent consent.--In the 
     majority of the cases processed in the period beginning 90 
     days before the date of transmittal of the certification and 
     ending on such date, the consent of a birth parent to 
     termination of parental rights or to the adoption was not 
     obtained.
       (iv) Fraud, duress, or improper inducement.--In the 
     majority of the cases processed in the period beginning 90 
     days before the date of transmittal of the certification and 
     ending on such date, the consent of a birth parent to the 
     termination of parental rights or the adoption was obtained 
     as a result of fraud, duress, or improper inducement.
       (B) Plan.--A detailed plan that would remedy the 
     circumstance or circumstances described in subparagraph (A) 
     justifying the suspension, including efforts by the 
     Department of Justice to communicate with United States 
     citizen family members who might be affected by the impending 
     suspension.
       (C) Estimate of time to remedy circumstances.--A good faith 
     estimate of the time needed to remedy the circumstance or 
     circumstances described in subparagraph (A) justifying the 
     suspension.
       (2) Limitation.--In no case may a suspension last longer 
     than one year.
       (3) Transition provision.--Not later than 30 days after the 
     date of enactment of this Act, the Commissioner shall certify 
     to Congress that any suspension in effect on the date of the 
     transmittal of that certification is justified by one or more 
     of the circumstances described in paragraph (1)(A).
       (b) Requirements of the Department of State.--Neither the 
     Secretary of State nor any other official of the Department 
     of State shall urge a foreign government to suspend the 
     processing of international adoptions by United States 
     citizens unless the Secretary of State provides notice in 
     writing to each House of Congress, in accordance with 
     subsection (c), of his intention to take such action.
       (c) Submission of reports and notices to congress.--The 
     submission of a report under subsection (a) or a notice under 
     subsection (b) is satisfied if the report or notice, as 
     appropriate, is submitted--
       (1) in the case of the Senate, not less than 30 session 
     days (excluding days in which the Senate stands in recess) in 
     advance of the action; and
       (2) in the case of the House of Representatives, not less 
     than 30 legislative days in advance of the action.
       (d) Definitions.--In this section:
       (1) Alien orphan.--The term ``alien orphan'' means an alien 
     child described in section 101(b)(1) (F) or (G) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(b)(1) (F) or 
     (G)).
       (2) Clear and convincing evidence.--The term ``clear and 
     convincing evidence'' means specific, well documented, and 
     substantiated proof that the underlying assertion is true.
       (3) Commissioner.--The term ``Commissioner'' means the 
     Commissioner of Immigration and Naturalization, subject to 
     the authority, supervision, and control of the Attorney 
     General.
       (4) Sending country.--The term ``sending country'' means 
     the country with legal authority to process the adoption of 
     the child in question.
       (5) Suspension.--The term ``suspension'' means, with 
     respect to a country, the decision by the Commissioner to 
     suspend the processing of petitions for classification of 
     alien orphans who are natives of that country.
                                  ____

  SA 3384. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill H.R. 3009, to extend the Andean Trade Preference 
Act, to grant additional trade benefits under that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following new section:

     SEC. ____. TRADE ADJUSTMENT ASSISTANCE FOR MARITIME 
                   EMPLOYEES.

       Not later than 6 months after the date of enactment of the 
     Trade Adjustment Assistance for Workers, Farmers, Fishermen, 
     Communities, and Firms Act of 2002, the Secretary of Labor 
     shall establish a program to provide health insurance 
     benefits under title VI of that Act, and program benefits 
     under chapter 2 of title II of the Trade Act of 1974 (19 
     U.S.C. 2271 et seq.) to longshoremen, harbor and port pilots, 
     port personnel, stevedores, crane operators, warehouse 
     personnel, and other maritime workers who have become totally 
     or partially separated, or are threatened to become totally 
     or partially separated, as a result of the decline in the 
     importation of steel products into the United States caused 
     by the safeguard measures taken by the United States on March 
     5, 2002, under chapter 1 of title II of such Act (19 U.S.C. 
     2251 et seq.).
                                  ____

  SA 3385. Mr. REID (for Mr. Biden) proposed an amendment to the bill 
H.R. 1646, to authorize appropriations for the Department of State for 
fiscal years 2002 and 2003, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Security 
     Assistance Act of 2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:


[[Page S3640]]


Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

 TITLE I--VERIFICATION OF ARMS CONTROL AND NONPROLIFERATION AGREEMENTS

Sec. 101. Verification and Compliance Bureau personnel.
Sec. 102. Key Verification Assets Fund.
Sec. 103. Revised verification and compliance reporting requirements.

               TITLE II--MILITARY AND RELATED ASSISTANCE

      Subtitle A--Foreign Military Sales and Financing Authorities

Sec. 201. Authorization of appropriations.
Sec. 202. Relationship of foreign military sales to United States 
              nonproliferation interests.
Sec. 203. Special Defense Acquisition Fund for nonproliferation and 
              counter-narcotics purposes.
Sec. 204. Representation allowances.
Sec. 205. Arms Export Control Act prohibition on transactions with 
              countries that have repeatedly provided support for acts 
              of international terrorism.
Sec. 206. Congressional notification of small arms and light weapons 
              license approvals; annual reports.

       Subtitle B--International Military Education and Training

Sec. 211. Authorization of appropriations.
Sec. 212. Annual human rights reports.

          Subtitle C--Security Assistance for Select Countries

Sec. 221. Security assistance for Israel and Egypt.
Sec. 222. Security assistance for Greece and Turkey.
Sec. 223. Security assistance for certain other countries.

      Subtitle D--Excess Defense Article and Drawdown Authorities

Sec. 231. Excess defense articles for certain countries.
Sec. 232. Annual briefing on projected availability of excess defense 
              articles.
Sec. 233. Expanded drawdown authority.
Sec. 234. Duration of security assistance leases.

            Subtitle E--Other Political-Military Assistance

Sec. 241. Destruction of surplus weapons stockpiles.
Sec. 242. Identification of funds for demining programs.

                  Subtitle F--Antiterrorism Assistance

Sec. 251. Authorization of appropriations.
Sec. 252. Specific program objectives.

                       Subtitle G--Other Matters

Sec. 261. Revised military assistance reporting requirements.

       TITLE III--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

                     Subtitle A--General Provisions

Sec. 301. Authorization of appropriations.
Sec. 302. Joint State Department-Defense Department programs.
Sec. 303. Nonproliferation technology acquisition programs for friendly 
              foreign countries.
Sec. 304. International nonproliferation and export control training.
Sec. 305. Relocation of scientists.
Sec. 306. Audits of the International Science and Technology Centers 
              Program.
Sec. 307. International Atomic Energy Agency regular budget 
              assessments.
Sec. 308. Revised nonproliferation reporting requirements.

   Subtitle B--Russian Federation Debt Reduction for Nonproliferation

Sec. 311. Short title.
Sec. 312. Findings and purposes.
Sec. 313. Definitions.
Sec. 314. Establishment of the Russian Nonproliferation Investment 
              Facility.
Sec. 315. Reduction of the Russian Federation's Soviet-era debt owed to 
              the United States, generally.
Sec. 316. Reduction of Soviet-era debt owed to the United States as a 
              result of credits extended under title I of the 
              Agricultural Trade Development and Assistance Act of 
              1954.
Sec. 317. Authority to engage in debt-for-nonproliferation exchanges 
              and debt buybacks.
Sec. 318. Russian Nonproliferation Investment Agreement.
Sec. 319. Structure of debt-for-nonproliferation arrangements.
Sec. 320. Independent media and the rule of law.
Sec. 321. Nonproliferation requirement.
Sec. 322. Discussion of Russian Federation debt reduction for 
              nonproliferation with other creditor states.
Sec. 323. Implementation of United States policy.
Sec. 324. Consultations with Congress.
Sec. 325. Annual report to Congress.

          Subtitle C--Nonproliferation Assistance Coordination

Sec. 331. Short title.
Sec. 332. Findings.
Sec. 333. Independent states of the former Soviet Union defined.
Sec. 334. Establishment of Committee on Nonproliferation Assistance to 
              the Independent States of the Former Soviet Union.
Sec. 335. Duties of the Committee.
Sec. 336. Administrative support.
Sec. 337. Confidentiality of information.
Sec. 338. Statutory construction.

          TITLE IV--EXPEDITING THE MUNITIONS LICENSING PROCESS

Sec. 401. License officer staffing.
Sec. 402. Funding for database automation.
Sec. 403. Information management priorities.
Sec. 404. Improvements to the Automated Export System.
Sec. 405. Adjustment of threshold amounts for congressional review 
              purposes.
Sec. 406. Periodic notification of pending applications for export 
              licenses.

             TITLE V--NATIONAL SECURITY ASSISTANCE STRATEGY

Sec. 501. Establishment of the Strategy.
Sec. 502. Security assistance surveys.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Nuclear and missile nonproliferation in South Asia.
Sec. 602. Real-time public availability of raw seismological data.
Sec. 603. Detailing United States governmental personnel to 
              international arms control and nonproliferation 
              organizations.
Sec. 604. Diplomatic presence overseas.
Sec. 605. Protection against agricultural bioterrorism.
Sec. 606. Compliance with the Chemical Weapons Convention.

             TITLE VII--AUTHORITY TO TRANSFER NAVAL VESSELS

Sec. 701. Authority to transfer naval vessels to certain foreign 
              countries.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means the Committee on 
     Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives.
       (2) Defense article.--The term ``defense article'' has the 
     meaning given the term in section 47(3) of the Arms Export 
     Control Act (22 U.S.C. 2794 note).
       (3) Defense service.--The term ``defense service'' has the 
     meaning given the term in section 47(4) of the Arms Export 
     Control Act (22 U.S.C. 2794 note).
       (4) Excess defense article.--The term ``excess defense 
     article'' has the meaning given the term in section 644(g) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2403(g)).
       (5) Secretary.--Except as otherwise provided, the term 
     ``Secretary'' means the Secretary of State.

 TITLE I--VERIFICATION OF ARMS CONTROL AND NONPROLIFERATION AGREEMENTS

     SEC. 101. VERIFICATION AND COMPLIANCE BUREAU PERSONNEL.

       (a) In General.--Of the total amounts made available to the 
     Department of State for fiscal years 2002 and 2003, not less 
     than $14,000,000 each such fiscal year shall be provided to 
     the Bureau of Verification and Compliance of the Department 
     of State for Bureau-administered activities, including the 
     Key Verification Assets Fund.
       (b) Additional Personnel.--In addition to the amounts made 
     available under subsection (a), not less than $1,800,000 
     shall be made available from the Department's American 
     Salaries Account, for the purpose of hiring new personnel to 
     carry out the Bureau's responsibilities, as set forth in 
     section 112 of the Arms Export Control and Nonproliferation 
     Act of 1999 (113 Stat. 1501A-486), as enacted into law by 
     section 1000(a)(7) of Public Law 106-113.

     SEC. 102. KEY VERIFICATION ASSETS FUND.

       Of the total amounts made available to the Department of 
     State for fiscal years 2002 and 2003, not less than 
     $7,000,000 shall be made available within the Verification 
     and Compliance Bureau's account for each such fiscal year to 
     carry out section 1111 of the Arms Control and 
     Nonproliferation Act of 1999 (113 Stat. 1501A-486), as 
     enacted into law by section 1000(a)(7) of Public Law 106-113.

     SEC. 103. REVISED VERIFICATION AND COMPLIANCE REPORTING 
                   REQUIREMENTS.

       Section 403(a) of the Arms Control and Disarmament Act (22 
     U.S.C. 2593a(a)) is amended by striking ``January 31'' and 
     inserting ``April 15''.

               TITLE II--MILITARY AND RELATED ASSISTANCE

      Subtitle A--Foreign Military Sales and Financing Authorities

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the President 
     for grant assistance under section 23 of the Arms Export 
     Control Act (22 U.S.C. 2763) and for the subsidy cost, as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990, of direct loans under such section $3,674,000,000 for 
     fiscal year 2002 and $4,267,000,000 for fiscal year 2003.

     SEC. 202. RELATIONSHIP OF FOREIGN MILITARY SALES TO UNITED 
                   STATES NONPROLIFERATION INTERESTS.

       (a) Authorized Purposes.--The first sentence of section 4 
     of the Arms Export Control Act (22 U.S.C. 2754) is amended by 
     inserting ``for preventing or hindering the proliferation of 
     weapons of mass destruction and of the means of delivering 
     such weapons,'' after ``self-defense,''.
       (b) Definition of ``Weapons of Mass Destruction''.--Section 
     47 of the Arms Export Control Act (22 U.S.C. 2794) is 
     amended--

[[Page S3641]]

       (1) by striking ``and'' at the end of paragraph (8);
       (2) by striking the period at the end of paragraph (9) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(10) `weapons of mass destruction' has the meaning 
     provided by section 1403(1) of the Defense Against Weapons of 
     Mass Destruction Act of 1996 (title XIV of Public Law 104-
     201; 110 Stat. 2717; 50 U.S.C. 2302(1)).''.
       (c) Sense of Congress.--It is the sense of Congress that 
     the Secretary should ensure, in circumstances where the sale 
     of defense articles or defense services to a friendly country 
     would serve the nonproliferation interests of the United 
     States, but that country cannot afford to purchase such 
     defense articles or defense services, that grant assistance 
     is provided pursuant to section 23 of the Arms Export Control 
     Act to facilitate such acquisition.

     SEC. 203. SPECIAL DEFENSE ACQUISITION FUND FOR 
                   NONPROLIFERATION AND COUNTER-NARCOTICS 
                   PURPOSES.

       (a) Establishment.--Notwithstanding any other provision of 
     law, the President shall direct that the Special Defense 
     Acquisition Fund be established pursuant to section 51 of the 
     Arms Export Control Act (22 U.S.C. 2795).
       (b) Use of the Special Defense Acquisition Fund.--Section 
     51(a)(4) of the Arms Export Control Act (22 U.S.C. 
     2795(a)(4)) is amended by striking ``for use for'' and all 
     that follows through ``equipment'' and inserting the 
     following: ``for use for--
       ``(A) narcotics control purposes and are appropriate to the 
     needs of recipient countries, such as small boats, planes 
     (including helicopters), and communications equipment; and
       ``(B) nonproliferation and export control purposes, such as 
     nuclear, radiological, chemical, and biological warfare 
     materials detection equipment.''.
       (c) Limitation.--Section 51(c) of the Arms Export Control 
     Act (22 U.S.C. 2795(c)) is amended--
       (1) in paragraph (1), by striking all after ``exceed'' 
     through the period and inserting ``$200,000,000.''; and
       (2) in paragraph (2), by striking ``provided'' and all that 
     follows through ``Acts'' and inserting ``specifically 
     authorized by law in advance''.
       (d) Authorization.--For fiscal year 2003, not more than 
     $20,000,000 may be made available for obligation for the 
     procurement of items pursuant to section 51 of the Arms 
     Export Control Act.

     SEC. 204. REPRESENTATION ALLOWANCES.

       Section 43(c) of the Arms Export Control Act (22 U.S.C. 
     2792(c)) is amended by striking ``$72,500'' and inserting 
     ``$86,500''.

     SEC. 205. ARMS EXPORT CONTROL ACT PROHIBITION ON TRANSACTIONS 
                   WITH COUNTRIES THAT HAVE REPEATEDLY PROVIDED 
                   SUPPORT FOR ACTS OF INTERNATIONAL TERRORISM.

       The second sentence of section 40(d) of the Arms Export 
     Control Act (22 U.S.C. 2780(d)) is amended--
       (1) by inserting ``or chemical, biological, or radiological 
     agents'' after ``nuclear explosive devices''; and
       (2) by inserting ``or chemical, biological, or radiological 
     agents'' after ``nuclear material''.

     SEC. 206. CONGRESSIONAL NOTIFICATION OF SMALL ARMS AND LIGHT 
                   WEAPONS LICENSE APPROVALS; ANNUAL REPORTS.

       (a) Congressional Notification of Export License 
     Approvals.--Section 36(c) of the Arms Export Control Act (22 
     U.S.C. 2776(c)) is amended by inserting ``(or, in the case of 
     a defense article that is a firearm controlled under category 
     I of the United States Munitions List, $1,000,000 or more)'' 
     after ``$50,000,000 or more''.
       (b) Report.--Not later than six months after the date of 
     enactment of this Act, and annually thereafter, the Secretary 
     of State shall submit an unclassified report to the 
     appropriate congressional committees on the numbers, range, 
     and findings of end-use monitoring of United States transfers 
     in small arms and light weapons.
       (c) Annual Military Assistance Reports.--Section 655(b)(3) 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 2415(b)(3)) 
     is amended by inserting before the period at the end the 
     following: ``, including, in the case of defense articles 
     that are firearms controlled under category I of the United 
     States Munitions List, a statement of the aggregate dollar 
     value and quantity of semiautomatic assault weapons, or 
     related equipment, the manufacture, transfer, or possession 
     of which is unlawful under section 922 of title 18, United 
     States Code, that were licensed for export during the period 
     covered by the report''.
       (d) Annual Report on Arms Brokering.--Not later than six 
     months after the date of enactment of this Act, and annually 
     thereafter, the Secretary of State shall submit a report to 
     the appropriate committees of Congress on activities of 
     registered arms brokers, including violations of the Arms 
     Export Control Act.
       (e) Annual Report on Investigations of the Bureau of 
     Alcohol, Tobacco and Firearms.--Not later than six months 
     after the date of enactment of this Act, and annually 
     thereafter, the Secretary of the Treasury shall submit a 
     report to the appropriate committees of Congress on 
     investigations and other efforts undertaken by the Bureau of 
     Alcohol, Tobacco and Firearms (including cooperation with 
     other agencies) to stop United States-source weapons from 
     being used in terrorist acts and international crime.

       Subtitle B--International Military Education and Training

     SEC. 211. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the President 
     $75,000,000 for fiscal year 2002 and $85,290,000 for fiscal 
     year 2003 to carry out chapter 5 of part II of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2347 et seq.; relating to 
     international military education and training).

     SEC. 212. ANNUAL HUMAN RIGHTS REPORTS.

       (a) With Respect to Prohibitions on Nonmilitary 
     Assistance.--Section 116(d) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2151n(d)) is amended by redesignating 
     paragraphs (7) and (8) as paragraphs (8) and (9), 
     respectively, and by inserting after paragraph (6) the 
     following:
       ``(7) to the extent practicable, for any violation of 
     internationally recognized human rights reported under this 
     subsection, whether any foreign military or defense ministry 
     civilian participant in education and training activities 
     under chapter 5 of part II of this Act was involved;''.
       (b) Records Regarding Foreign Participants.--Section 548 of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2347e) is 
     amended--
       (1) by striking ``In'' and inserting ``(a) Development and 
     Maintenance of Database.--In''; and
       (2) by adding at the end the following new subsections:
       ``(b) Annual List of Foreign Personnel.--For the purposes 
     of preparing the report required pursuant to section 116(d), 
     the Secretary of State may annually request the Secretary of 
     Defense to provide information contained in the database with 
     respect to a list submitted to the Secretary of Defense by 
     the Secretary of State, containing the names of foreign 
     personnel or military units. To the extent practicable, the 
     Secretary of Defense shall provide, and the Secretary of 
     State may take into account, the information contained in the 
     database, if any, relating to the Secretary of State's 
     submission.
       ``(c) Updating of Database.--If the Secretary of State 
     determines and reports to Congress under section 116(d) that 
     a foreign person identified in the database maintained 
     pursuant to this section was involved in a violation of 
     internationally recognized human rights, the Secretary of 
     Defense shall ensure that the database is updated to contain 
     such fact and all relevant information.''.

          Subtitle C--Security Assistance for Select Countries

     SEC. 221. SECURITY ASSISTANCE FOR ISRAEL AND EGYPT.

       (a) Authorization of Appropriations.--
       (1) Israel.--Section 513 of the Security Assistance Act of 
     2000 (Public Law 106-280) is amended by striking ``2001 and 
     2002'' each place that it appears and inserting ``2002 and 
     2003''.
       (2) Egypt.--Section 514 of the Security Assistance Act of 
     2000 (Public Law 106-280) is amended by striking ``2001 and 
     2002'' each place that it appears and inserting ``2002 and 
     2003''.
       (b) Ballistic Missile Defense.--Of the amounts made 
     available for fiscal years 2002 and 2003 under section 513 of 
     the Security Assistance Act of 2000 (Public Law 106-280), as 
     amended by subsection (a), $100,000,000 may be used each such 
     fiscal year for the establishment, in cooperation with a 
     United States company, of a production line for the Arrow 
     missile in the United States.

     SEC. 222. SECURITY ASSISTANCE FOR GREECE AND TURKEY.

       (a) In General.--Of the amounts made available for the 
     fiscal years 2002 and 2003 to carry out chapter 5 of part II 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et 
     seq.)--
       (1) $1,000,000 for fiscal year 2002 and $1,170,000 for 
     fiscal year 2003 are authorized to be available for Greece; 
     and
       (2) $2,500,000 for fiscal year 2002 and $2,920,000 for 
     fiscal year 2003 are authorized to be available for Turkey.
       (b) Use for Professional Military Education.--Of the 
     amounts available under paragraphs (1) and (2) of subsection 
     (a) for each of fiscal years 2002 and 2003, $500,000 of each 
     such amount should be available for purposes of professional 
     military education.
       (c) Use for Joint Training.--It is the sense of Congress 
     that, to the maximum extent practicable, amounts available 
     under subsection (a) that are used in accordance with 
     subsection (b) should be used for joint training of Greek and 
     Turkish officers.
       (d) Repeal.--Section 512 of the Security Assistance Act of 
     2000 (Public Law 106-280; 114 Stat. 856) is repealed.

     SEC. 223. SECURITY ASSISTANCE FOR CERTAIN OTHER COUNTRIES.

       (a) FMF for Certain Other Countries.--Of the amounts made 
     available for the fiscal years 2002 and 2003 under section 23 
     of the Arms Export Control Act (22 U.S.C. 2763), the 
     following amounts are authorized to be available on a grant 
     basis for the following countries for the fiscal years 
     specified:
       (1) The baltic states.--For all of the Baltic states of 
     Estonia, Latvia, and Lithuania, $21,000,000 for fiscal year 
     2002 and $24,400,000 for fiscal year 2003.
       (2) Bulgaria.--For Bulgaria, $10,000,000 for fiscal year 
     2002 and $11,620,000 for fiscal year 2003.

[[Page S3642]]

       (3) The czech republic.--For the Czech Republic, 
     $12,000,000 for fiscal year 2002 and $14,000,000 for fiscal 
     year 2003.
       (4) Georgia.--For Georgia, $5,650,000 for fiscal year 2002 
     and $6,560,000 for fiscal year 2003.
       (5) Hungary.--For Hungary, $12,000,000 for fiscal year 2002 
     and $14,000,000 for fiscal year 2003.
       (6) Jordan.--For Jordan, $75,000,000 for fiscal year 2002 
     and $87,300,000 for fiscal year 2003.
       (7) Malta.--For Malta, $1,000,000 for fiscal year 2002 and 
     $1,170,000 for fiscal year 2003.
       (8) The philippines.--For the Philippines, $19,000,000 for 
     fiscal year 2002 and $22,100,000 for fiscal year 2003.
       (9) Poland.--For Poland, $15,000,000 for fiscal year 2002 
     and $17,500,000 for fiscal year 2003.
       (10) Romania.--For Romania, $11,500,000 for fiscal year 
     2002 and $13,400,000 for fiscal year 2003.
       (11) Slovakia.-- For Slovakia, $8,500,000 for fiscal year 
     2002 and $9,900,000 for fiscal year 2003.
       (12) Slovenia.--For Slovenia, $4,500,000 for fiscal year 
     2002 and $5,250,000 for fiscal year 2003.
       (b) IMET.--Of the amounts made available for the fiscal 
     years 2002 and 2003 to carry out chapter 5 of part II of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.), the 
     following amounts are authorized to be available for the 
     following countries for the fiscal years specified:
       (1) The baltic states.--For all of the Baltic states of 
     Estonia, Latvia, and Lithuania, $3,000,000 for fiscal year 
     2002 and $3,420,000 for fiscal year 2003.
       (2) Bulgaria.--For Bulgaria, $1,200,000 for fiscal year 
     2002 and $1,370,000 for fiscal year 2003.
       (3) The czech republic.--For the Czech Republic, $1,800,000 
     for fiscal year 2002 and $2,050,000 for fiscal year 2003.
       (4) Georgia.--For Georgia, $850,000 for fiscal year 2002 
     and $970,000 for fiscal year 2003.
       (5) Hungary.--For Hungary, $1,800,000 for fiscal year 2002 
     and $2,050,000 for fiscal year 2003.
       (6) Jordan.--For Jordan, $1,800,000 for fiscal year 2002 
     and $2,050,000 for fiscal year 2003.
       (7) Malta.--For Malta, $300,000 for fiscal year 2002 and 
     $350,000 for fiscal year 2003.
       (8) The philippines.--For the Philippines, $1,710,000 for 
     fiscal year 2002 and $2,000,000 for fiscal year 2003.
       (9) Poland.--For Poland, $1,900,000 for fiscal year 2002 
     and $2,160,000 for fiscal year 2003.
       (10) Romania.--For Romania, $1,400,000 for fiscal year 2002 
     and $1,600,000 for fiscal year 2003.
       (11) Slovakia.--For Slovakia, $850,000 for fiscal year 2002 
     and $970,000 for fiscal year 2003.
       (12) Slovenia.--For Slovenia, $800,000 for fiscal year 2002 
     and $910,000 for fiscal year 2003.
       (c) Written Explanation of Presidential Determinations.--In 
     the event that the President determines not to provide, or 
     determines to exceed, the funding allocated for any country 
     specified in this section by an amount that is more than five 
     percent of that specified in this section, the President 
     shall submit to the appropriate committees of Congress within 
     15 days of such determination a written explanation of the 
     reasons therefor.
       (d) Repeals.--Sections 511 (a) and (b) and 515 of the 
     Security Assistance Act of 2000 are repealed.

      Subtitle D--Excess Defense Article and Drawdown Authorities

     SEC. 231. EXCESS DEFENSE ARTICLES FOR CERTAIN COUNTRIES.

       (a) Authority.--Notwithstanding section 516(e) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e), during 
     each of the fiscal years 2002 and 2003, funds available to 
     the Department of Defense may be expended for crating, 
     packing, handling, and transportation of excess defense 
     articles transferred under the authority of section 516 of 
     such Act to Albania, Bulgaria, Croatia, Estonia, Former 
     Yugoslavia Republic of Macedonia, Georgia, India, Kazakhstan, 
     Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, Pakistan, 
     Romania, Slovakia, Slovenia, Tajikistan, Turkmenistan, 
     Ukraine, and Uzbekistan.
       (b) Sense of Congress.--The authority provided under this 
     section should be utilized only for those countries 
     demonstrating a genuine commitment to democracy and human 
     rights.

     SEC. 232. ANNUAL BRIEFING ON PROJECTED AVAILABILITY OF EXCESS 
                   DEFENSE ARTICLES.

       Not later than 90 days prior to the commencement of each 
     fiscal year, the Department of Defense shall brief the 
     Department of State and the appropriate committees of 
     Congress regarding the expected availability of excess 
     defense articles during the next fiscal year, for the purpose 
     of enabling the Department of State to factor such 
     availability into annual security assistance plans.

     SEC. 233. EXPANDED DRAWDOWN AUTHORITY.

       Section 506(c) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2318(c)) is amended to read as follows:
       ``(c) For the purposes of any provision of law that 
     authorizes the drawdown of defense or other articles or 
     commodities, or defense or other services from an agency of 
     the United States Government, such drawdown may include the 
     supply of commercial transportation and related services and 
     defense or other articles or commodities, or defense or other 
     services, that are acquired by contract for the purposes of 
     the drawdown in question, if the cost to acquire such items 
     or services is less than the cost to the United States 
     Government of providing such items or services from existing 
     agency assets.''.

     SEC. 234. DURATION OF SECURITY ASSISTANCE LEASES.

       Section 61 of the Arms Export Control Act (22 U.S.C. 2796) 
     is amended--
       (1) in subsection (b), by striking ``of not to exceed five 
     years'' and inserting ``that may not exceed 5 years, plus a 
     period of time specified in the lease as may be necessary for 
     major refurbishment work to be performed prior to final 
     delivery by the lessor of the defense articles,''; and
       (2) by adding at the end the following new subsection:
       ``(d) In this section, the term `major refurbishment work' 
     means refurbishment work performed over a period estimated to 
     be 6 months or more.''.

            Subtitle E--Other Political-Military Assistance

     SEC. 241. DESTRUCTION OF SURPLUS WEAPONS STOCKPILES.

       Of the funds authorized to be appropriated to the President 
     for fiscal years 2002 and 2003 to carry out chapters 1 and 10 
     of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2151 et seq.), relating to development assistance, up to 
     $10,000,000 is authorized to be made available each such 
     fiscal year for the destruction of surplus stockpiles of 
     small arms, light weapons, and other munitions.

     SEC. 242. IDENTIFICATION OF FUNDS FOR DEMINING PROGRAMS.

        Of the funds authorized to be appropriated under section 
     201 for nonproliferation, antiterrorism, demining, and 
     related programs, $40,000,000 is authorized to be 
     appropriated for fiscal year 2002 for demining programs and 
     program support costs.

                  Subtitle F--Antiterrorism Assistance

     SEC. 251. AUTHORIZATION OF APPROPRIATIONS.

       Section 574(a) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2349aa-4(a)) is amended by striking ``$72,000,000 for 
     fiscal year 2001 and $73,000,000 for fiscal year 2002'' and 
     inserting ``$73,000,000 for fiscal year 2002 and $75,000,000 
     for fiscal year 2003''.

     SEC. 252. SPECIFIC PROGRAM OBJECTIVES.

       Of the amounts authorized to be appropriated to the 
     President pursuant to section 574(a) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2349aa-4(a)), $2,000,000 
     may be made available for the provision of the Pisces system 
     to the governments of the Philippines and Pakistan.

                       Subtitle G--Other Matters

     SEC. 261. REVISED MILITARY ASSISTANCE REPORTING REQUIREMENTS.

       (a) Annual Foreign Military Training Reports.--Section 
     656(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2416) 
     does not apply to any NATO or major non-NATO ally unless the 
     chairman or ranking member of one of the appropriate 
     committees of Congress has specifically requested, in 
     writing, inclusion of such country in the report. Such 
     request shall be made not later than 45 calendar days prior 
     to the date on which the report is required to be 
     transmitted.
       (b) Annual Military Assistance Reports.--Section 655 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2415) is amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).
       (c) Quarterly Reports on Government-To-Government Arms 
     Exports.--Section 36(a) of the Arms Export Control Act (22 
     U.S.C. 2776(a)) is amended--
       (1) by striking paragraph (7); and
       (2) by redesignating paragraphs (8), (9), (10), (11), (12), 
     and (13) as paragraphs (7), (8), (9), (10), (11), and (12), 
     respectively.

       TITLE III--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

                     Subtitle A--General Provisions

     SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization.--Section 585 of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2349bb-4) is amended--
       (1) in subsection (a), by striking all after ``chapter'' 
     and inserting ``$142,000,000 for fiscal year 2002 and 
     $152,000,000 for fiscal year 2003.''; and
       (2) in subsection (c), by striking ``2001'' each place that 
     it appears and inserting ``2002''.
       (b) Suballocations.--Of the amounts authorized to be 
     appropriated to the President for fiscal years 2002 and 2003 
     under chapter 9 of part II of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2349bb et seq.)--
       (1) not less than $2,000,000 shall be made available each 
     such fiscal year for the purpose of carrying out section 584 
     of the Foreign Assistance Act of 1961, as added by section 
     304 of this Act; and
       (2) $65,000,000 for fiscal year 2002 and $65,000,000 for 
     fiscal year 2003 are authorized to be appropriated for 
     science and technology centers in the independent states of 
     the former Soviet Union.
       (c) Conforming Amendment.--Section 302 of the Security 
     Assistance Act of 2000 (Public Law 106-280) is repealed.

     SEC. 302. JOINT STATE DEPARTMENT-DEFENSE DEPARTMENT PROGRAMS.

       Of the amounts authorized to be appropriated to the 
     President for fiscal years 2002 and 2003 under chapter 9 of 
     part II of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2349bb

[[Page S3643]]

     et seq.), the Secretary is authorized to make available not 
     more than $1,000,000 for international counterproliferation 
     programs administered by the Department of Defense.

     SEC. 303. NONPROLIFERATION TECHNOLOGY ACQUISITION PROGRAMS 
                   FOR FRIENDLY FOREIGN COUNTRIES.

       (a) In General.--For the purpose of enhancing the 
     nonproliferation and export control capabilities of friendly 
     countries, of the amounts authorized to be appropriated for 
     fiscal years 2002 and 2003 under chapter 9 of part II of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2349bb et seq.), 
     the Secretary is authorized to expend not more than--
       (1) $5,000,000 for the procurement and provision of 
     nuclear, chemical, and biological detection systems, 
     including spectroscopic and pulse echo technologies; and
       (2) $10,000,000 for the procurement and provision of x-ray 
     systems capable of imaging sea-cargo containers.
       (b) Training Requirement.--The Secretary shall not provide 
     any equipment or technology pursuant to this section without 
     having first developed and budgeted for a multiyear training 
     plan to assist foreign personnel in the utilization of those 
     items.
       (c) Procurement Authorities.--For fiscal year 2003, the 
     Secretary shall utilize, to the maximum extent practicable, 
     the Special Defense Acquisition Fund for procurements 
     authorized under this section.

     SEC. 304. INTERNATIONAL NONPROLIFERATION AND EXPORT CONTROL 
                   TRAINING.

       Chapter 9 of part II of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2349bb et seq.) is amended--
       (1) by redesignating sections 584 and 585 as sections 585 
     and 586, respectively; and
       (2) by inserting after section 583 the following:

     ``SEC. 584. INTERNATIONAL NONPROLIFERATION EXPORT CONTROL 
                   TRAINING.

       ``(a) General Authority.--The President is authorized to 
     furnish, on such terms and conditions consistent with this 
     chapter (but whenever feasible on a reimbursable basis), 
     education and training to foreign personnel for the purpose 
     of enhancing the nonproliferation and export control 
     capabilities of such personnel through their attendance in 
     special courses of instruction conducted by the United 
     States.
       ``(b) Administration of Courses.--The Secretary of State 
     shall have overall responsibility for the development and 
     conduct of international nonproliferation education and 
     training programs, but may utilize other departments and 
     agencies, as appropriate, to recommend personnel for the 
     education and training, and to administer specific courses of 
     instruction.
       ``(c) Purposes.--Education and training activities 
     conducted under this section shall be--
       ``(1) of a technical nature, emphasizing techniques for 
     detecting, deterring, monitoring, interdicting, and 
     countering proliferation;
       ``(2) designed to encourage effective and mutually 
     beneficial relations and increased understanding between the 
     United States and friendly countries; and
       ``(3) designed to improve the ability of friendly countries 
     to utilize their resources with maximum effectiveness, 
     thereby contributing to greater self-reliance by such 
     countries.
       ``(d) Priority to Certain Countries.--In selecting military 
     and foreign governmental personnel for education and training 
     pursuant to this section, priority shall be given to 
     personnel from countries for which the Secretary of State has 
     given priority under section 583(b).''.

     SEC. 305. RELOCATION OF SCIENTISTS.

       (a) Reinstatement of Classification Authority.--Section 4 
     of the Soviet Scientists Immigration Act of 1992 (Public Law 
     102-509; 106 Stat. 3316; 8 U.S.C. 1153 note) is amended by 
     striking subsection (d) and inserting the following:
       ``(d) Duration of Authority.--The authority under 
     subsection (a) shall be in effect during the following 
     periods:
       ``(1) The period beginning on the date of the enactment of 
     this Act and ending 4 years after such date.
       ``(2) The period beginning on the date of the enactment of 
     the Security Assistance Act of 2001 and ending 4 years after 
     such date.''.
       (b) Limitation on Number of Scientists Eligible for Visas 
     Under Authority.--Subsection (c) of such section is amended 
     by striking ``750'' and inserting ``950''.
       (c) Limitation on Eligibility.--Subsection (a) of such 
     section is amended by adding at the end the following new 
     sentence: ``A scientist is not eligible for designation under 
     this subsection if the scientist has previously been granted 
     the status of an alien lawfully admitted for permanent 
     residence (as defined in section 101(a)(20) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(20))).''.
       (d) Consultation Requirement.--The Attorney General shall 
     consult with the Secretary, the Secretary of Defense, the 
     Secretary of Energy, and the heads of other appropriate 
     agencies of the United States regarding--
       (1) previous experience in implementing the Soviet 
     Scientists Immigration Act of 1992; and
       (2) any changes that those officials would recommend in the 
     regulations prescribed under that Act.

     SEC. 306. AUDITS OF THE INTERNATIONAL SCIENCE AND TECHNOLOGY 
                   CENTERS PROGRAM.

       Consistent with section 303(b) of the Security Assistance 
     Act of 2000 (Public Law 106-280; 114 Stat. 853), not later 
     than 60 days after the date of enactment of this Act, the 
     Secretary shall submit a detailed report to the appropriate 
     committees of Congress on United States audit practices with 
     respect to the ``International Science and Technology Centers 
     Program''.

     SEC. 307. INTERNATIONAL ATOMIC ENERGY AGENCY REGULAR BUDGET 
                   ASSESSMENTS.

       (a) Findings.--Congress makes the following findings:
       (1) The Department of State has concluded that the 
     International Atomic Energy Agency (hereafter in this section 
     referred to as the ``IAEA'') is a critical and effective 
     instrument for verifying compliance with international 
     nuclear nonproliferation agreements, and that it serves as an 
     essential barrier to the spread of nuclear weapons.
       (2) The IAEA furthers United States national security 
     objectives by helping to prevent the proliferation of nuclear 
     weapons material, especially through its work on effective 
     verification and safeguards measures.
       (3) The IAEA can also perform a critical role in monitoring 
     and verifying aspects of nuclear weapons reduction agreements 
     between nuclear weapons states.
       (4) As the IAEA has negotiated and developed more effective 
     verification and safeguards measures, it has experienced 
     significant real growth in its mission, especially in the 
     vital area of nuclear safeguards inspections.
       (5) Nearly two decades of zero budget growth have affected 
     the ability of the IAEA to carry out its mission and to hire 
     and retain the most qualified inspectors and managers, as 
     evidenced in the decreasing proportion of such personnel who 
     hold doctorate degrees.
       (6) Although voluntary contributions by the United States 
     lessen the IAEA's budgetary constraints, they cannot readily 
     be used for the long-term capital investments or permanent 
     staff increases necessary to an effective IAEA safeguards 
     regime.
       (7) It was not the intent of Congress that the United 
     States contributions to all United Nations-related 
     organizations and activities be reduced pursuant to the 
     Admiral James W. Nance and Meg Donovan Foreign Relations 
     Authorization Act, Fiscal Years 2000 and 2001 (as enacted 
     into law by section 1000(a)(7) of Public Law 106-113; 113 
     Stat. 1501A-405 et seq.), which sets 22 percent assessment 
     rates as benchmarks for the general United Nations budget, 
     the Food and Agricultural Organization, the World Health 
     Organization, and the International Labor Organization. 
     Rather, contributions for important and effective agencies 
     such as the IAEA should be maintained at levels commensurate 
     with the criticality of its mission.
       (b) Additional Funding for the International Atomic Energy 
     Agency.--It is the sense of Congress that--
       (1) the Secretary should negotiate a gradual and sustained 
     increase in the regular budget of the International Atomic 
     Energy Agency, which should begin with the 2002 budget;
       (2) if a regular budget increase for the IAEA is achieved, 
     the Secretary should seek to gain consensus within the IAEA 
     Board of Governors for allocation of a larger proportion of 
     that budget to nuclear nonproliferation activities; and
       (3) if such a reallocation of the regular IAEA budget 
     cannot be obtained, the United States should decrease its 
     voluntary contribution by $400,000 for each $1,000,000 
     increase in its annual assessment.
       (c) Authorization of Appropriations.--Of the funds 
     authorized to be appropriated for international 
     organizations, $60,000,000 are authorized to be appropriated 
     in fiscal year 2002 for the payment of the United States 
     assessment to the International Atomic Energy Agency, and 
     $75,000,000 shall be available for that purpose in fiscal 
     year 2003.

     SEC. 308. REVISED NONPROLIFERATION REPORTING REQUIREMENTS.

       Section 308 of Public Law 102-182 (22 U.S.C. 5606) is 
     hereby repealed.

   Subtitle B--Russian Federation Debt Reduction for Nonproliferation

     SEC. 311. SHORT TITLE.

       This subtitle may be cited as the ``Russian Federation Debt 
     Reduction for Nonproliferation Act of 2001''.

     SEC. 312. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) It is in the vital security interests of the United 
     States to prevent the spread of weapons of mass destruction 
     to additional states or to terrorist organizations, and to 
     ensure that other nations' obligations to reduce their 
     stockpiles of such arms in accordance with treaties, 
     executive agreements, or political commitments are fulfilled.
       (2) In particular, it is in the vital national security 
     interests of the United States to ensure that--
       (A) all stocks of nuclear weapons and weapons-usable 
     nuclear material in the Russian Federation are secure and 
     accounted for;
       (B) stocks of nuclear weapons and weapons-usable nuclear 
     material that are excess to military needs in the Russian 
     Federation are monitored and reduced;
       (C) any chemical or biological weapons, related materials, 
     and facilities in the Russian Federation are destroyed;
       (D) the Russian Federation's nuclear weapons complex is 
     reduced to a size appropriate to its post-Cold War missions, 
     and its experts in weapons of mass destruction technologies

[[Page S3644]]

     are shifted to gainful and sustainable civilian employment;
       (E) the Russian Federation's export control system blocks 
     any proliferation of weapons of mass destruction, the means 
     of delivering such weapons, and materials, equipment, know-
     how, or technology that would be used to develop, produce, or 
     deliver such weapons; and
       (F) these objectives are accomplished with sufficient 
     monitoring and transparency to provide confidence that they 
     have in fact been accomplished and that the funds provided to 
     accomplish these objectives have been spent efficiently and 
     effectively.
       (3) United States programs should be designed to accomplish 
     these vital objectives in the Russian Federation as rapidly 
     as possible, and the President should develop and present to 
     Congress a plan for doing so.
       (4) Substantial progress has been made in United States-
     Russian Federation cooperative programs to achieve these 
     objectives, but much more remains to be done to reduce the 
     urgent risks to United States national security posed by the 
     current state of the Russian Federation's weapons of mass 
     destruction stockpiles and complexes.
       (5) The threats posed by inadequate management of weapons 
     of mass destruction stockpiles and complexes in the Russian 
     Federation remain urgent. Incidents in years immediately 
     preceding 2001, which have been cited by the Russia Task 
     Force of the Secretary of Energy's Advisory Board, include--
       (A) a conspiracy at one of the Russian Federation's largest 
     nuclear weapons facilities to steal nearly enough highly 
     enriched uranium for a nuclear bomb;
       (B) an attempt by an employee of the Russian Federation's 
     premier nuclear weapons facility to sell nuclear weapons 
     designs to agents of Iraq and Afghanistan; and
       (C) the theft of radioactive material from a Russian 
     Federation submarine base.
       (6) Addressing these threats to United States and world 
     security will ultimately consume billions of dollars, a 
     burden that will have to be shared by the Russian Federation, 
     the United States, and other governments, if this objective 
     is to be achieved.
       (7) The creation of new funding streams could accelerate 
     progress in reducing these threats to United States security 
     and help the government of the Russian Federation to fulfill 
     its responsibility for secure management of its weapons 
     stockpiles and complexes as United States assistance phases 
     out.
       (8) The Russian Federation suffers from a significant 
     foreign debt burden, a substantial proportion of which it 
     inherited from the Soviet Union. The Russian Federation is 
     taking full responsibility for this debt, but the burden of 
     debt repayment could threaten Russian Federation economic 
     reform, particularly in 2003 and beyond.
       (9) The Russian Federation's need for debt relief has been 
     the subject of discussions between the United States and the 
     Russian Federation at the highest levels and is cited by 
     United States officials as one reason why the Russian 
     Federation has recognized that its future lies with the West.
       (10) Past debt-for-environment exchanges, in which a 
     portion of a country's foreign debt is canceled in return for 
     certain environmental commitments or payments by that 
     country, provide a model for a possible debt-for-
     nonproliferation exchange with the Russian Federation, which 
     could be designed to provide additional funding for 
     nonproliferation and arms reduction initiatives.
       (11) Most of the Russian Federation's official bilateral 
     debt is held by United States allies that are advanced 
     industrial democracies. Since the issues described pose 
     threats to United States allies as well, United States 
     leadership that results in a larger contribution from United 
     States allies to cooperative threat reduction activities will 
     be needed.
       (b) Purposes.--The purposes of this subtitle are--
       (1) to recognize the vital interests of the United States, 
     its allies, and the Russian Federation in reducing the 
     threats to international security described in the findings 
     set forth in subsection (a);
       (2) to facilitate the accomplishment of the United States 
     objectives described in the findings set forth in subsection 
     (a) by providing for the alleviation of a portion of the 
     Russian Federation's foreign debt, thus allowing the use of 
     additional resources for these purposes; and
       (3) to ensure that resources freed from debt in the Russian 
     Federation are targeted to the accomplishment of the United 
     States objectives described in the findings set forth in 
     subsection (a).

     SEC. 313. DEFINITIONS.

       In this subtitle:
       (1) Agreement.--The term ``Agreement'' means the Russian 
     Nonproliferation Investment Agreement provided for in section 
     318.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       (B) the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate.
       (3) Cost.--The term ``cost'' has the meaning given that 
     term in section 502(5) of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661a(5)).
       (4) Facility.--The term ``Facility'' means the Russian 
     Nonproliferation Investment Facility established in the 
     Department of the Treasury by section 314.
       (5) Soviet-era debt.--The term ``Soviet-era debt'' means 
     debt owed as a result of loans or credits provided by the 
     United States (or any agency of the United States) to the 
     Union of Soviet Socialist Republics.

     SEC. 314. ESTABLISHMENT OF THE RUSSIAN NONPROLIFERATION 
                   INVESTMENT FACILITY.

       There is established in the Department of the Treasury an 
     entity to be known as the ``Russian Nonproliferation 
     Investment Facility'' for the purpose of providing for the 
     administration of debt reduction in accordance with this 
     subtitle.

     SEC. 315. REDUCTION OF THE RUSSIAN FEDERATION'S SOVIET-ERA 
                   DEBT OWED TO THE UNITED STATES, GENERALLY.

       (a) Authority To Reduce Soviet-Era Debt.--
       (1) Authority.--
       (A) In general.--Except as provided in subparagraph (B), 
     and subject to section 321, the President may reduce the 
     amount of Soviet-era debt owed by the Russian Federation to 
     the United States (or any agency of the United States) that 
     is outstanding as of October 1, 2001.
       (B) Exception.--The authority of subparagraph (A) to reduce 
     Soviet-era debt does not include any debt that is described 
     in section 316(a)(1).
       (2) Congressional notification.--The President shall notify 
     the appropriate congressional committees of his intention to 
     reduce the amount of the Russian Federation's Soviet-era debt 
     at least 15 days in advance of any formal determination to do 
     so.
       (3) Authorization of appropriations.--
       (A) In general.--For the cost of the reduction of any 
     Soviet-era debt pursuant to this section, there are 
     authorized to be appropriated to the President--
       (i) $50,000,000 for fiscal year 2002; and
       (ii) $100,000,000 for fiscal year 2003.
       (B) Limitation.--The authority provided by this section 
     shall be available only to the extent that appropriations for 
     the cost of the modification of any Soviet-era debt pursuant 
     to this section are made in advance.
       (4) Certain prohibitions inapplicable.--
       (A) In general.--A reduction of Soviet-era debt pursuant to 
     this section shall not be considered assistance for the 
     purposes of any provision of law limiting assistance to a 
     country.
       (B) Additional requirement.--The authority of this section 
     may be exercised notwithstanding section 620(r) of the 
     Foreign Assistance Act of 1961 or section 321 of the 
     International Development and Food Assistance Act of 1975.
       (b) Implementation of Soviet-Era Debt Reduction.--
       (1) In general.--Any reduction of Soviet-era debt pursuant 
     to subsection (a) shall be--
       (A) implemented pursuant to the terms of a Russian 
     Nonproliferation Investment Agreement authorized under 
     section 318; and
       (B) accomplished at the direction of the Facility by the 
     exchange of a new obligation for obligations of the type 
     referred to in such subsection that are outstanding as of 
     October 1, 2001.
       (2) Exchange of obligations.--
       (A) In general.--The Facility shall notify the agency 
     primarily responsible for administering part I of the Foreign 
     Assistance Act of 1961 of an agreement entered into under 
     paragraph (1) with the Russian Federation to exchange a new 
     obligation for outstanding obligations.
       (B) Additional requirement.--At the direction of the 
     Facility, the old obligations that are the subject of the 
     agreement shall be canceled and a new debt obligation for the 
     Russian Federation shall be established relating to the 
     agreement, and the agency primarily responsible for 
     administering part I of the Foreign Assistance Act of 1961 
     shall make an adjustment in its accounts to reflect the debt 
     reduction.
       (c) Additional Terms and Conditions.--The following 
     additional terms and conditions shall apply to the reduction 
     of Soviet-era debt under subsection (a)(1) in the same manner 
     as such terms and conditions apply to the reduction of debt 
     under section 704(a)(1) of the Foreign Assistance Act of 
     1961:
       (1) The provisions relating to repayment of principal under 
     section 705 of the Foreign Assistance Act of 1961.
       (2) The provisions relating to interest on new obligations 
     under section 706 of the Foreign Assistance Act of 1961.

     SEC. 316. REDUCTION OF SOVIET-ERA DEBT OWED TO THE UNITED 
                   STATES AS A RESULT OF CREDITS EXTENDED UNDER 
                   TITLE I OF THE AGRICULTURAL TRADE DEVELOPMENT 
                   AND ASSISTANCE ACT OF 1954.

       (a) Authority To Reduce Certain Soviet-Era Debt.--
       (1) Authority.--Notwithstanding any other provision of law, 
     and subject to section 321, the President may reduce the 
     amount of Soviet-era debt owed to the United States (or any 
     agency of the United States) by the Russian Federation that 
     is outstanding as of October 1, 2001, as a result of any 
     credits extended under title I of the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1701 et 
     seq.).
       (2) Congressional notification.--The President shall notify 
     the appropriate congressional committees of his intention to 
     reduce the amount of the Russian Federation's Soviet-era debt 
     described in paragraph (1) at least 15 days in advance of any 
     formal determination to do so.

[[Page S3645]]

       (3) Authorization of appropriations.--
       (A) In general.--For the cost of the reduction of any 
     Soviet-era debt pursuant to this section, there are 
     authorized to be appropriated to the President--
       (i) $50,000,000 for fiscal year 2002; and
       (ii) $100,000,000 for fiscal year 2003.
       (B) Limitation.--The authority provided by this section 
     shall be available only to the extent that appropriations for 
     the cost of the modification of any Soviet-era debt pursuant 
     to this section are made in advance.
       (b) Implementation of Soviet-Era Debt Reduction.--
       (1) In general.--Any reduction of Soviet-era debt pursuant 
     to subsection (a) shall be--
       (A) implemented pursuant to the terms of a Russian 
     Nonproliferation Investment Agreement authorized under 
     section 318; and
       (B) accomplished at the direction of the Facility by the 
     exchange of a new obligation for obligations of the type 
     referred to in such subsection that are outstanding as of 
     October 1, 2001.
       (2) Exchange of obligations.--
       (A) In general.--The Facility shall notify the Commodity 
     Credit Corporation of an agreement entered into under 
     paragraph (1) with an eligible country to exchange a new 
     obligation for outstanding obligations.
       (B) Additional requirement.--At the direction of the 
     Facility, the old obligations that are the subject of the 
     agreement shall be canceled and a new debt obligation shall 
     be established for the Russian Federation relating to the 
     agreement, and the Commodity Credit Corporation shall make an 
     adjustment in its accounts to reflect the debt reduction.
       (c) Additional Terms and Conditions.--The following 
     additional terms and conditions shall apply to the reduction 
     of Soviet-era debt under subsection (a)(1) in the same manner 
     as such terms and conditions apply to the reduction of debt 
     under section 604(a)(1) of the Agricultural Trade Development 
     and Assistance Act of 1954 (7 U.S.C. 1738c):
       (1) The provisions relating to repayment of principal under 
     section 605 of such Act.
       (2) The provisions relating to interest on new obligations 
     under section 606 of such Act.

     SEC. 317. AUTHORITY TO ENGAGE IN DEBT-FOR-NONPROLIFERATION 
                   EXCHANGES AND DEBT BUYBACKS.

       (a) Loans and Credits Eligible for Sale, Reduction, or 
     Cancellation.--
       (1) Debt-for-nonproliferation exchanges.--
       (A) In general.--Notwithstanding any other provision of 
     law, and subject to section 321, the President may, in 
     accordance with this section, sell to any purchaser eligible 
     under subparagraph (B), any loan or credit described in 
     section 315(a)(1), or any credit described in section 
     316(a)(1), or on receipt of payment from an eligible 
     purchaser, reduce or cancel any such loan or credit or 
     portion thereof, only for the purpose of facilitating a debt-
     for-nonproliferation exchange to support activities that 
     further United States objectives described in the findings 
     set forth in section 312(a).
       (B) Eligible purchaser.--A loan or credit may be sold, 
     reduced, or canceled under subparagraph (A) with respect to a 
     purchaser who presents plans satisfactory to the President 
     for using the loan or credit for the purpose of engaging in 
     debt-for-nonproliferation exchange to support activities that 
     further United States objectives described in the findings 
     set forth in section 312(a).
       (C) Consultation requirement.--Before the sale under 
     subparagraph (A) to any purchaser eligible under subparagraph 
     (B), or any reduction or cancellation under subparagraph (A), 
     of any loan or credit made to the Russian Federation, the 
     President shall consult with that country concerning the 
     amount of loans or credits to be sold, reduced, or canceled 
     and their uses for debt-for-nonproliferation exchanges to 
     support activities that further United States objectives 
     described in the findings set forth in section 312(a).
       (D) Authorization of appropriations.--For the cost of the 
     reduction of any debt pursuant to subparagraph (A), amounts 
     authorized to be appropriated under sections 315(a)(3) and 
     316(a)(3) shall be made available for such reduction of debt 
     pursuant to subparagraph (A).
       (2) Debt buybacks.--Notwithstanding any other provision of 
     law, the President may, in accordance with this section, sell 
     to the Russian Federation any loan or credit described in 
     section 315(a)(1) or any credit described in section 
     316(a)(1), or on receipt of payment from the Russian 
     Federation, reduce or cancel such loan or credit or portion 
     thereof, if the purpose of doing so is to facilitate a debt 
     buyback by the Russian Federation of its own qualified debt 
     and the Russian Federation uses a substantial additional 
     amount of its local currency to support activities that 
     further United States objectives described in the findings 
     set forth in section 312(a).
       (3) Limitation.--The authority provided by paragraphs (1) 
     and (2) shall be available only to the extent that 
     appropriations for the cost of the modification of any debt 
     pursuant to such paragraphs are made in advance.
       (4) Terms and conditions.--Notwithstanding any other 
     provision of law, the President shall, in accordance with 
     this section, establish the terms and conditions under which 
     loans and credits may be sold, reduced, or canceled pursuant 
     to this section.
       (5) Administration.--
       (A) In general.--The Facility shall notify the 
     Administrator of the agency primarily responsible for 
     administering part I of the Foreign Assistance Act of 1961 or 
     the Commodity Credit Corporation, as the case may be, of 
     purchasers that the President has determined to be eligible 
     under paragraph (1)(B), and shall direct such agency or 
     Corporation, as the case may be, to carry out the sale, 
     reduction, or cancellation of a loan pursuant to such 
     paragraph.
       (B) Additional requirement.--Such agency or Corporation, as 
     the case may be, shall make an adjustment in its accounts to 
     reflect the sale, reduction, or cancellation.
       (b) Deposit of Proceeds.--The proceeds from a sale, 
     reduction, or cancellation of a loan sold, reduced, or 
     canceled pursuant to this section shall be deposited in the 
     United States Government account or accounts established for 
     the repayment of such loan.

     SEC. 318. RUSSIAN NONPROLIFERATION INVESTMENT AGREEMENT.

       (a) Authority.--Subject to section 321, the Secretary is 
     authorized, in consultation with other appropriate officials 
     of the Federal Government, to enter into an agreement with 
     the Russian Federation concerning the use of the funds saved 
     by that country as a result of any debt relief provided 
     pursuant to this subtitle. An agreement entered into under 
     this section may be referred to as the ``Russian 
     Nonproliferation Investment Agreement''.
       (b) Content of Agreement.--The Russian Nonproliferation 
     Investment Agreement shall ensure that--
       (1) a significant proportion of the funds saved by the 
     Russian Federation as a result of any debt relief provided 
     pursuant to this subtitle is devoted to nonproliferation 
     programs and projects;
       (2) funding of each such program or project is approved by 
     the United States Government, either directly or through its 
     representation on any governing board that may be directed or 
     established to manage these funds;
       (3) administration and oversight of nonproliferation 
     programs and projects incorporate best practices from 
     established threat reduction and nonproliferation assistance 
     programs;
       (4) each program or project funded pursuant to the 
     Agreement is subject to audits conducted by or for the United 
     States Government;
       (5) unobligated funds for investments pursuant to the 
     Agreement are segregated from other Russian Federation funds 
     and invested in financial instruments guaranteed or insured 
     by the United States Government;
       (6) the funds that are devoted to programs and projects 
     pursuant to the Agreement are not subject to any taxation by 
     the Russian Federation;
       (7) all matters relating to the intellectual property 
     rights and legal liabilities of United States firms in a 
     given project are agreed upon before the expenditure of funds 
     is authorized for that project; and
       (8) not less than 75 percent of the funds made available 
     for each nonproliferation program or project under the 
     Agreement is spent in the Russian Federation.
       (c) Use of Existing Mechanisms.--It is the sense of 
     Congress that, to the extent practicable, the boards and 
     administrative mechanisms of existing threat reduction and 
     nonproliferation programs should be used in the 
     administration and oversight of programs and projects under 
     the Agreement.

     SEC. 319. STRUCTURE OF DEBT-FOR-NONPROLIFERATION 
                   ARRANGEMENTS.

       It is the sense of Congress that any debt-for-
     nonproliferation arrangements with the Russian Federation 
     should provide for gradual debt relief over a period of 
     years, with debt relief to be suspended if more than two 
     years' worth of funds remain unobligated for approved 
     nonproliferation programs or projects.

     SEC. 320. INDEPENDENT MEDIA AND THE RULE OF LAW.

       Subject to section 321, of the agreed funds saved by the 
     Russian Federation as a result of any debt relief provided 
     pursuant to this subtitle, up to 10 percent may be used to 
     promote a vibrant, independent media sector and the rule of 
     law in the Russian Federation through an endowment to support 
     the establishment of a ``Center for an Independent Press and 
     the Rule of Law'' in the Russian Federation, which shall be 
     directed by a joint United States-Russian Board of Directors 
     in which the majority of members, including the chairman, 
     shall be United States personnel, and which shall be 
     responsible for management of the endowment, its funds, and 
     the Center's programs.

     SEC. 321. NONPROLIFERATION REQUIREMENT.

       (a) Proliferation to State Sponsors of Terrorism.--The 
     authorities granted under sections 315, 316, 317, 318, and 
     320 may not be exercised, and funds may not be expended, 
     unless and until--
       (1) the Russian Federation makes material progress in 
     stemming the flow of sensitive goods, technologies, material, 
     and know-how related to the design, development, and 
     production of weapons of mass destruction and the means to 
     deliver them to countries that have been determined by the 
     Secretary, for the purposes of section 40 of the Arms Export 
     Control Act, section 620A of the Foreign Assistance Act, or 
     section 6(j) of the Export Administration Act of 1979, to 
     have repeatedly provided support for acts of international 
     terrorism; and
       (2) the President certifies to the appropriate 
     congressional committees that the condition required in 
     paragraph (1) has been met.

[[Page S3646]]

       (b) Annual Determination.--If, in any annual report to 
     Congress submitted pursuant to section 325, the President 
     cannot certify that the Russian Federation continues to meet 
     the condition required in subsection (a)(1), then, subject to 
     the provisions of subsection (c), the authorities granted 
     under under sections 315, 316, 317, 318, and 320 may not be 
     exercised, and funds may not be expended, unless and until 
     such certification is made to the appropriate congressional 
     committees.
       (c) Presidential Waiver.--The President may waive the 
     requirements of subsection (b) for a fiscal year if the 
     President determines that imposition of those requirements in 
     that fiscal year would be counter to the national interest of 
     the United States and so reports to the appropriate 
     congressional committees.

     SEC. 322. DISCUSSION OF RUSSIAN FEDERATION DEBT REDUCTION FOR 
                   NONPROLIFERATION WITH OTHER CREDITOR STATES.

       The President and such other appropriate officials as the 
     President may designate shall institute discussions in the 
     Paris Club of creditor states with the objectives of--
       (1) reaching agreement that each member of the Paris Club 
     is authorized to negotiate debt exchanges with the Russian 
     Federation covering a portion of its bilateral debt, to 
     finance the accomplishment of nonproliferation and arms 
     reduction activities;
       (2) convincing other member states of the Paris Club, 
     especially the largest holders of Soviet-era Russian debt, to 
     dedicate significant proportions of their bilateral debt with 
     the Russian Federation to these purposes; and
       (3) reaching agreement, as appropriate, to establish a 
     unified debt exchange fund to manage and provide financial 
     transparency for the resources provided through the debt 
     exchanges.

     SEC. 323. IMPLEMENTATION OF UNITED STATES POLICY.

       It is the sense of Congress that implementation of debt-
     for-nonproliferation programs with the Russian Federation 
     should be overseen by the Committee on Nonproliferation 
     Assistance to the Independent States of the Former Soviet 
     Union (established pursuant to section 334 of this Act).

     SEC. 324. CONSULTATIONS WITH CONGRESS.

       The President shall consult with the appropriate 
     congressional committees on a periodic basis to review the 
     operations of the Facility and the Russian Federation's 
     eligibility for benefits from the Facility.

     SEC. 325. ANNUAL REPORT TO CONGRESS.

       Not later than December 31, 2002, and not later than 
     December 31 of each year thereafter, the President shall 
     prepare and transmit to Congress a report concerning the 
     operation of the Facility during the fiscal year preceding 
     the fiscal year in which the report is transmitted. The 
     report on a fiscal year shall include--
       (1) a description of the activities undertaken by the 
     Facility during the fiscal year;
       (2) a description of any agreement entered into under this 
     subtitle;
       (3) a description of any grants that have been provided 
     pursuant to the agreement; and
       (4) a summary of the results of audits performed in the 
     fiscal year pursuant to the agreement.

          Subtitle C--Nonproliferation Assistance Coordination

     SEC. 331. SHORT TITLE.

       This subtitle may be cited as the ``Nonproliferation 
     Assistance Coordination Act of 2001''.

     SEC. 332. FINDINGS.

       Congress finds that--
       (1) United States nonproliferation efforts in the 
     independent states of the former Soviet Union have achieved 
     important results in ensuring that weapons of mass 
     destruction, weapons-usable material and technology, and 
     weapons-related knowledge remain beyond the reach of 
     terrorists and weapons-proliferating states;
       (2) although these efforts are in the United States 
     national security interest, the effectiveness of these 
     efforts suffers from a lack of coordination within and among 
     United States Government agencies;
       (3) increased spending and investment by the United States 
     private sector on nonproliferation efforts in the independent 
     states of the former Soviet Union, specifically, spending and 
     investment by the United States private sector in job 
     creation initiatives and proposals for unemployed Russian 
     Federation weapons scientists and technicians, are making an 
     important contribution in ensuring that knowledge related to 
     weapons of mass destruction remains beyond the reach of 
     terrorists and weapons-proliferating states; and
       (4) increased spending and investment by the United States 
     private sector on nonproliferation efforts in the independent 
     states of the former Soviet Union require the establishment 
     of a coordinating body to ensure that United States public 
     and private efforts are not in conflict, and to ensure that 
     public spending on efforts by the independent states of the 
     former Soviet Union is maximized to ensure efficiency and 
     further United States national security interests.

     SEC. 333. INDEPENDENT STATES OF THE FORMER SOVIET UNION 
                   DEFINED.

       In this subtitle, the term ``independent states of the 
     former Soviet Union'' has the meaning given the term in 
     section 3 of the FREEDOM Support Act (22 U.S.C. 5801).

     SEC. 334. ESTABLISHMENT OF COMMITTEE ON NONPROLIFERATION 
                   ASSISTANCE TO THE INDEPENDENT STATES OF THE 
                   FORMER SOVIET UNION.

       (a) Establishment.--There is established within the 
     executive branch of the Government an interagency committee 
     known as the ``Committee on Nonproliferation Assistance to 
     the Independent States of the Former Soviet Union'' (in this 
     subtitle referred to as the ``Committee'').
       (b) Membership.--
       (1) In general.--The Committee shall be composed of five 
     members, as follows:
       (A) A representative of the Department of State designated 
     by the Secretary of State.
       (B) A representative of the Department of Energy designated 
     by the Secretary of Energy.
       (C) A representative of the Department of Defense 
     designated by the Secretary of Defense.
       (D) A representative of the Department of Commerce 
     designated by the Secretary of Commerce.
       (E) A representative of the Assistant to the President for 
     National Security Affairs designated by the Assistant to the 
     President.
       (2) Level of representation.--The Secretary of a department 
     named in subparagraph (A), (B), (C), or (D) of paragraph (1) 
     shall designate as the department's representative an 
     official of that department who is not below the level of an 
     Assistant Secretary of the department.
       (c) Chair.--The representative of the Assistant to the 
     President for National Security Affairs shall serve as Chair 
     of the Committee. The Chair may invite the head of any other 
     department or agency of the United States to designate a 
     representative of that department or agency to participate 
     from time to time in the activities of the Committee.

     SEC. 335. DUTIES OF THE COMMITTEE.

       (a) In General.--The Committee shall have primary 
     continuing responsibility within the executive branch of the 
     Government for--
       (1) monitoring United States nonproliferation efforts in 
     the independent states of the former Soviet Union; and
       (2) coordinating the implementation of United States policy 
     with respect to such efforts.
       (b) Duties Specified.--In carrying out the responsibilities 
     described in subsection (a), the Committee shall--
       (1) arrange for the preparation of analyses on the issues 
     and problems relating to coordination within and among United 
     States departments and agencies on nonproliferation efforts 
     of the independent states of the former Soviet Union;
       (2) arrange for the preparation of analyses on the issues 
     and problems relating to coordination between the United 
     States public and private sectors on nonproliferation efforts 
     in the independent states of the former Soviet Union, 
     including coordination between public and private spending on 
     nonproliferation programs of the independent states of the 
     former Soviet Union and coordination between public spending 
     and private investment in defense conversion activities of 
     the independent states of the former Soviet Union;
       (3) provide guidance on arrangements that will coordinate, 
     de-conflict, and maximize the utility of United States public 
     spending on nonproliferation programs of the independent 
     states of the former Soviet Union to ensure efficiency and 
     further United States national security interests;
       (4) encourage companies and nongovernmental organizations 
     involved in nonproliferation efforts of the independent 
     states of the former Soviet Union to voluntarily report these 
     efforts to the Committee;
       (5) arrange for the preparation of analyses on the issues 
     and problems relating to the coordination between the United 
     States and other countries with respect to nonproliferation 
     efforts in the independent states of the former Soviet Union; 
     and
       (6) consider, and make recommendations to the President and 
     Congress with respect to, proposals for new legislation or 
     regulations relating to United States nonproliferation 
     efforts in the independent states of the former Soviet Union 
     as may be necessary.

     SEC. 336. ADMINISTRATIVE SUPPORT.

       All United States departments and agencies shall provide, 
     to the extent permitted by law, such information and 
     assistance as may be requested by the Committee in carrying 
     out its functions and activities under this subtitle.

     SEC. 337. CONFIDENTIALITY OF INFORMATION.

       Information which has been submitted or received in 
     confidence shall not be publicly disclosed, except to the 
     extent required by law, and such information shall be used by 
     the Committee only for the purpose of carrying out the 
     functions and activities set forth in this subtitle.

     SEC. 338. STATUTORY CONSTRUCTION.

       Nothing in this subtitle--
       (1) applies to the data-gathering, regulatory, or 
     enforcement authority of any existing United States 
     department or agency over nonproliferation efforts in the 
     independent states of the former Soviet Union, and the review 
     of those efforts undertaken by the Committee shall not in any 
     way supersede or prejudice any other process provided by law; 
     or
       (2) applies to any activity that is reportable pursuant to 
     title V of the National Security Act of 1947 (50 U.S.C. 413 
     et seq.).

[[Page S3647]]

          TITLE IV--EXPEDITING THE MUNITIONS LICENSING PROCESS

     SEC. 401. LICENSE OFFICER STAFFING.

       (a) Funding.--Of the amounts authorized to be appropriated 
     under the appropriations account entitled ``Diplomatic and 
     Consular Programs'' for fiscal years 2002 and 2003, not less 
     than $10,000,000 shall be made available each such fiscal 
     year for the Office of Defense Trade Controls of the 
     Department of State for salaries and expenses.
       (b) Assignment of License Review Officers.--Effective 
     January 1, 2002, the Secretary shall assign to the Office of 
     Defense Trade Controls of the Department of State a 
     sufficient number of license review officers to ensure that 
     the average weekly caseload for each officer does not exceed 
     40.
       (c) Detailees.--For the purpose of expediting license 
     reviews, the Secretary of Defense should ensure that 10 
     military officers are continuously detailed to the Office of 
     Defense Trade Controls of the Department of State on a 
     nonreimbursable basis.

     SEC. 402. FUNDING FOR DATABASE AUTOMATION.

       Of the amounts authorized to be appropriated under the 
     appropriations account entitled ``Capital Investment Fund'' 
     for fiscal years 2002 and 2003, not less than $4,000,000 
     shall be made available each such fiscal year for the Office 
     of Defense Trade Controls of the Department of State for the 
     modernization of information management systems.

     SEC. 403. INFORMATION MANAGEMENT PRIORITIES.

       (a) Objective.--The Secretary shall establish a secure, 
     Internet-based system for the filing and review of 
     applications for export of Munitions List items.
       (b) Establishment of an Electronic System.--Of the amounts 
     made available pursuant to section 402, not less than 
     $3,000,000 each such fiscal year shall be made available to 
     fully automate the Defense Trade Application System, and to 
     ensure that the system--
       (1) is a secure, electronic system for the filing and 
     review of Munitions List license applications;
       (2) is accessible by United States companies through the 
     Internet for the purpose of filing and tracking their 
     Munitions List license applications; and
       (3) is capable of exchanging data with--
       (A) the Export Control Automated Support System of the 
     Department of Commerce;
       (B) the Foreign Disclosure and Technology Information 
     System and the USXPORTS systems of the Department of Defense;
       (C) the Export Control System of the Central Intelligence 
     Agency; and
       (D) the Proliferation Information Network System of the 
     Department of Energy.
       (c) Munitions List Defined.--In this section, the term 
     ``Munitions List'' means the United States Munitions List of 
     defense articles and defense services controlled under 
     section 38 of the Arms Export Control Act (22 U.S.C. 2778).

     SEC. 404. IMPROVEMENTS TO THE AUTOMATED EXPORT SYSTEM.

       (a) Contribution to the Automated Export System.--Not less 
     than $250,000 of the amounts provided under section 302 for 
     each fiscal year shall be available for the purpose of--
       (1) providing the Department of State with full access to 
     the Automated Export System;
       (2) ensuring that the system is modified to meet the needs 
     of the Department of State, if such modifications are 
     consistent with the needs of other United States Government 
     agencies; and
       (3) providing operational support.
       (b) Mandatory Filing.--The Secretary of Commerce, with the 
     concurrence of the Secretary of State and the Secretary of 
     Treasury, shall publish regulations in the Federal Register 
     to require, upon the effective date of those regulations, 
     that all persons who are required to file export information 
     under chapter 9 of title 13, United States Code, to file such 
     information through the Automated Export System.
       (c) Requirement for Information Sharing.--The Secretary 
     shall conclude an information-sharing arrangement with the 
     heads of United States Customs Service and the Census 
     Bureau--
       (1) to allow the Department of State to access information 
     on controlled exports made through the United States Postal 
     Service; and
       (2) to adjust the Automated Export System to parallel 
     information currently collected by the Department of State.
       (d) Secretary of Treasury Functions.--Section 303 of title 
     13, United States Code, is amended by striking ``, other than 
     by mail,''.
       (e) Filing Export Information, Delayed Filings, Penalties 
     for Failure To File.--Section 304 of title 13, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``the penal sum of 
     $1,000'' and inserting ``a penal sum of $10,000''; and
       (B) in the third sentence, by striking ``a penalty not to 
     exceed $100 for each day's delinquency beyond the prescribed 
     period, but not more than $1,000,'' and inserting ``a penalty 
     not to exceed $1,000 for each day's delinquency beyond the 
     prescribed period, but not more than $10,000 per violation'';
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following:
       ``(b) Any person, other than a person described in 
     subsection (a), required to submit export information, shall 
     file such information in accordance with any rule, 
     regulation, or order issued pursuant to this chapter. In the 
     event any such information or reports are not filed within 
     such prescribed period, the Secretary of Commerce (and 
     officers of the Department of Commerce designated by the 
     Secretary) may impose a civil penalty not to exceed $1,000 
     for each day's delinquency beyond the prescribed period, but 
     not more than $10,000 per violation.''.
       (f) Additional Penalties.--
       (1) In general.--Section 305 of title 13, United States 
     Code, is amended to read as follows:

     ``SEC. 305. PENALTIES FOR UNLAWFUL EXPORT INFORMATION 
                   ACTIVITIES.

       ``(a) Criminal Penalties.--(1) Any person who knowingly 
     fails to file or knowingly submits false or misleading export 
     information through the Shippers Export Declaration (SED) (or 
     any successor document) or the Automated Export System (AES) 
     shall be subject to a fine not to exceed $10,000 per 
     violation or imprisonment for not more than 5 years, or both.
       ``(2) Any person who knowingly reports any information on 
     or uses the SED or the AES to further any illegal activity 
     shall be subject to a fine not to exceed $10,000 per 
     violation or imprisonment for not more than 5 years, or both.
       ``(3) Any person who is convicted under this subsection 
     shall, in addition to any other penalty, be subject to 
     forfeiting to the United States--
       ``(A) any of that person's interest in, security of, claim 
     against, or property or contractual rights of any kind in the 
     goods or tangible items that were the subject of the 
     violation;
       ``(B) any of that person's interest in, security of, claim 
     against, or property or contractual rights of any kind in 
     tangible property that was used in the export or attempt to 
     export that was the subject of the violation; and
       ``(C) any of that person's property constituting, or 
     derived from, any proceeds obtained directly or indirectly as 
     a result of the violation.
       ``(b) Civil Penalties.--The Secretary (and officers of the 
     Department of Commerce specifically designated by the 
     Secretary) may impose a civil penalty not to exceed $10,000 
     per violation on any person violating the provisions of this 
     chapter or any rule, regulation, or order issued thereunder, 
     except as provided in section 304. Such penalty may be in 
     addition to any other penalty imposed by law.
       ``(c) Civil Penalty Procedure.--(1) When a civil penalty is 
     sought for a violation of this section or of section 304, the 
     charged party is entitled to receive a formal complaint 
     specifying the charges and, at his or her request, to contest 
     the charges in a hearing before an administrative law judge. 
     Any such hearing shall be conducted in accordance with 
     sections 556 and 557 of title 5, United States Code.
       ``(2) If any person fails to pay a civil penalty imposed 
     under this chapter, the Secretary may ask the Attorney 
     General to commence a civil action in an appropriate district 
     court of the United States to recover the amount imposed 
     (plus interest at currently prevailing rates from the date of 
     the final order). No such action may be commenced more than 5 
     years after the order imposing the civil penalty becomes 
     final. In such action, the validity, amount, and 
     appropriateness of such penalty shall not be subject to 
     review.
       ``(3) The Secretary may remit or mitigate any penalties 
     imposed under paragraph (1) if, in his or her opinion--
       ``(A) the penalties were incurred without willful 
     negligence or fraud; or
       ``(B) other circumstances exist that justify a remission or 
     mitigation.
       ``(4) If, pursuant to section 306, the Secretary delegates 
     functions under this section to another agency, the 
     provisions of law of that agency relating to penalty 
     assessment, remission or mitigation of such penalties, 
     collection of such penalties, and limitations of actions and 
     compromise of claims, shall apply.
       ``(5) Any amount paid in satisfaction of a civil penalty 
     imposed under this section or section 304 shall be deposited 
     into the general fund of the Treasury and credited as 
     miscellaneous receipts.
       ``(d) Enforcement.--(1) The Secretary of Commerce may 
     designate officers or employees of the Office of Export 
     Enforcement to conduct investigations pursuant to this 
     chapter. In conducting such investigations, those officers or 
     employees may, to the extent necessary or appropriate to the 
     enforcement of this chapter, exercise such authorities as are 
     conferred upon them by other laws of the United States, 
     subject to policies and procedures approved by the Attorney 
     General.
       ``(2) The Commissioner of Customs may designate officers or 
     employees of the Customs Service to enforce the provisions of 
     this chapter, or to conduct investigations pursuant to this 
     chapter.
       ``(e) Regulations.--The Secretary of Commerce shall 
     promulgate regulations for the implementation and enforcement 
     of this section.
       ``(f) Exemption.--The criminal fines provided for in this 
     section are exempt from the provisions of section 3571 of 
     title 18, United States Code.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 9 of title 13, United States Code, is 
     amended by striking the item relating to section 305 and 
     inserting the following:

``305. Penalties for unlawful export information activities.''.

[[Page S3648]]

     SEC. 405. ADJUSTMENT OF THRESHOLD AMOUNTS FOR CONGRESSIONAL 
                   REVIEW PURPOSES.

       The Arms Export Control Act is amended--
       (1) in section 3(d) (22 U.S.C. 2753(d))--
       (A) in paragraphs (1) and (3)(A), by striking ``The 
     President may not'' and inserting ``Subject to paragraph (5), 
     the President may not''; and
       (B) by adding at the end of the following new paragraph:
       ``(5) In the case of a transfer to a member country of the 
     North Atlantic Treaty Organization (NATO) or Australia, 
     Japan, or New Zealand that does not authorize a new sales 
     territory that includes any country other than such 
     countries, the limitations on consent of the President set 
     forth in paragraphs (1) and (3)(A) shall apply only if the 
     transfer is--
       ``(A) a transfer of major defense equipment valued (in 
     terms of its original acquisition cost) at $25,000,000 or 
     more; or
       ``(B) a transfer of defense articles or defense services 
     valued (in terms of its original acquisition cost) at 
     $100,000,000 or more).'';
       (2) in section 36 (22 U.S.C. 2776)--
       (A) in subsection (b)--
       (i) in paragraph (1), by striking ``(1) In the case of'' 
     and inserting ``(1) Subject to paragraph (6), in the case 
     of'';
       (ii) in paragraph (5)(C), by striking ``(C) If'' and 
     inserting ``(C) Subject to paragraph (6), if''; and
       (iii) by adding at the end of the following new paragraph:
       ``(6) The limitation in paragraph (1) and the requirement 
     in paragraph (5)(C) shall apply in the case of a letter of 
     offer to sell to a member country of the North Atlantic 
     Treaty Organization (NATO) or Australia, Japan, or New 
     Zealand that does not authorize a new sales territory that 
     includes any country other than such countries only if the 
     letter of offer involves--
       ``(A) sale of major defense equipment under this Act for, 
     or enhancement or upgrade of major defense equipment at a 
     cost of, $25,000,000 or more, as the case may be; and
       ``(B) sale of defense articles or services for, or 
     enhancement or upgrade of defense articles or services at a 
     cost of, $100,000,000 or more, as the case may be; or
       ``(C) sale of design and construction services for, or 
     enhancement or upgrade of design and construction services at 
     a cost of, $300,000,000 or more, as the case may be.''; and
       (B) in subsection (c)--
       (i) in paragraph (1), by striking ``(1) In the case of'' 
     and inserting ``(1) Subject to paragraph (5), in the case 
     of''; and
       (ii) by adding at the end the following new paragraph:
       ``(5) In the case of an application by a person (other than 
     with regard to a sale under section 21 or 22 of this Act) for 
     a license for the export to a member country of the North 
     Atlantic Treaty Organization (NATO) or Australia, Japan, or 
     New Zealand that does not authorize a new sales territory 
     that includes any country other than such countries, the 
     limitation on the issuance of the license set forth in 
     paragraph (1) shall apply only if the license is for export 
     of--
       ``(A) major defense equipment sold under a contract in the 
     amount of $25,000,000 or more; or
       ``(B) defense articles or defense services sold under a 
     contract in the amount of $100,000,000 or more.''; and
       (3) in section 63(a) (22 U.S.C. 2796b(a))--
       (A) by striking ``In the case of'' and inserting ``(1) 
     Subject to paragraph (2), in the case of''; and
       (B) by adding at the end the following new paragraph:
       ``(2) In the case of an agreement described in paragraph 
     (1) that is entered into with a member country of the North 
     Atlantic Treaty Organization (NATO) or Australia, Japan, or 
     New Zealand, the limitation in paragraph (1) shall apply only 
     if the agreement involves a lease or loan of--
       ``(A) major defense equipment valued (in terms of its 
     replacement cost less any depreciation in its value) at 
     $25,000,000 or more; or
       ``(B) defense articles valued (in terms of their 
     replacement cost less any depreciation in their value) at 
     $100,000,000 or more.''.

     SEC. 406. PERIODIC NOTIFICATION OF PENDING APPLICATIONS FOR 
                   EXPORT LICENSES.

       The Secretary shall submit, on a biannual basis, to the 
     appropriate committees of Congress a report identifying--
       (1) each outstanding application for a license to export 
     under section 38 of the Arms Export Control Act for which 
     final administrative action has been withheld for longer than 
     180 days; and
       (2) the referral status of each such application and any 
     other relevant information.

             TITLE V--NATIONAL SECURITY ASSISTANCE STRATEGY

     SEC. 501. ESTABLISHMENT OF THE STRATEGY.

       (a) Requirement.--Not later than 180 days after the date of 
     enactment of this Act, and annually thereafter in connection 
     with submission of congressional presentation materials for 
     the foreign operations appropriations budget request, the 
     Secretary shall submit to the appropriate committees of 
     Congress a report setting forth a National Security 
     Assistance Strategy for the United States.
       (b) Elements of the Strategy.--The National Security 
     Assistance Strategy shall--
       (1) set forth a 5-year plan for security assistance 
     programs;
       (2) be consistent with the National Security Strategy of 
     the United States;
       (3) be coordinated with the Secretary of Defense and the 
     Chairman of the Joint Chiefs of Staff;
       (4) identify overarching security assistance objectives, 
     including identification of the role that specific security 
     assistance programs will play in achieving such objectives;
       (5) identify a primary security assistance objective, as 
     well as specific secondary objectives, for individual 
     countries;
       (6) identify, on a country-by-country basis, how specific 
     resources will be allocated to accomplish both primary and 
     secondary objectives;
       (7) discuss how specific types of assistance, such as 
     foreign military financing and international military 
     education and training, will be combined at the country level 
     to achieve United States objectives; and
       (8) detail, with respect to each of the paragraphs (1) 
     through (7), how specific types of assistance provided 
     pursuant to the Arms Export Control Act and Foreign 
     Assistance Act of 1961 are coordinated with United States 
     assistance programs administered by the Department of Defense 
     and other agencies.
       (c) Covered Assistance.--The National Security Assistance 
     Strategy shall cover assistance provided under--
       (1) section 23 of the Arms Export Control Act (22 U.S.C. 
     2763);
       (2) chapter 5 of part II of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2347 et seq.); and
       (3) section 516 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321i).

     SEC. 502. SECURITY ASSISTANCE SURVEYS.

       (a) Utilization.--The Secretary shall utilize security 
     assistance surveys in preparation of the National Security 
     Assistance Strategy required pursuant to section 501 of this 
     Act.
       (b) Funding.--Of the amounts made available for fiscal year 
     2002 under section 23 of the Arms Export Control Act (22 
     U.S.C. 2763), $2,000,000 is authorized to be available to the 
     Secretary to conduct security assistance surveys, or to 
     request such a survey, on a reimbursable basis, by the 
     Department of Defense or other United States Government 
     agencies. Such surveys shall be conducted consistent with the 
     requirements of section 26 of the Arms Export Control Act.

                   TITLE VI--MISCELLANEOUS PROVISIONS

     SEC. 601. NUCLEAR AND MISSILE NONPROLIFERATION IN SOUTH ASIA.

       (a) United States Policy.--It shall be the policy of the 
     United States, consistent with its obligations under the 
     Treaty on the Non-Proliferation of Nuclear Weapons, to 
     encourage and work with the governments of India and Pakistan 
     to achieve the following objectives by September 30, 2003:
       (1) Continuation of a nuclear testing moratorium.
       (2) Commitment not to deploy nuclear weapons.
       (3) Agreement by both governments to bring their export 
     controls in line with the guidelines and requirements of the 
     Nuclear Suppliers Group.
       (4) Agreement by both governments to bring their export 
     controls in line with the guidelines and requirements of the 
     Zangger Committee.
       (5) Agreement by both governments to bring their export 
     controls in line with the guidelines, requirements, and 
     annexes of the Missile Technology Control Regime.
       (6) Establishment of a modern, effective system to protect 
     and secure nuclear devices and materiel from unauthorized 
     use, accidental employment, theft, espionage, misuse, or 
     abuse.
       (7) Establishment of a modern, effective system to control 
     the export of sensitive dual-use items, technology, technical 
     information, and materiel that can be used in the design, 
     development, or production of weapons of mass destruction and 
     ballistic missiles.
       (8) Conduct of bilateral meetings between Indian and 
     Pakistani senior officials to discuss security issues, 
     establish confidence building measures, and increase 
     transparency with regard to nuclear policies, programs, 
     stockpiles, capabilities, and delivery systems.
       (b) Report.--Not later than March 1, 2003, the President 
     shall submit to the appropriate committees of Congress a 
     report describing United States efforts in pursuit of the 
     objectives listed in subsection (a), the progress made toward 
     the achievement of those objectives, and the likelihood that 
     each objective will be achieved by September 30, 2003.

     SEC. 602. REAL-TIME PUBLIC AVAILABILITY OF RAW SEISMOLOGICAL 
                   DATA.

       The head of the Air Force Technical Applications Center 
     shall make available to the public, immediately upon receipt 
     or as soon after receipt as is possible, all raw 
     seismological data provided to the United States Government 
     by any international monitoring organization that is directly 
     responsible for seismological monitoring.

     SEC. 603. DETAILING UNITED STATES GOVERNMENTAL PERSONNEL TO 
                   INTERNATIONAL ARMS CONTROL AND NONPROLIFERATION 
                   ORGANIZATIONS.

       (a) In General.--The Secretary, in consultation with the 
     Secretaries of Defense and Energy and the heads of other 
     relevant United States departments and agencies, as 
     appropriate, shall develop measures to improve the process by 
     which United States Government personnel may be detailed to 
     international arms control and nonproliferation organizations 
     without adversely affecting the pay or career advancement of 
     such personnel.

[[Page S3649]]

       (b) Report Required.--Not later than May 1, 2002, the 
     Secretary shall submit a report to the Committee on Foreign 
     Relations of the Senate and the Committee on International 
     Relations of the House of Representatives setting forth the 
     measures taken under subsection (a).

     SEC. 604. DIPLOMATIC PRESENCE OVERSEAS.

       (a) Purpose.--The purpose of this section is to--
       (1) elevate the stature given United States diplomatic 
     initiatives relating to nonproliferation and political-
     military issues; and
       (2) develop a group of highly specialized, technical 
     experts with country expertise capable of administering the 
     nonproliferation and political-military affairs functions of 
     the Department of State.
       (b) Authority.--To carry out the purposes of subsection 
     (a), the Secretary is authorized to establish the position of 
     Counselor for Nonproliferation and Political Military Affairs 
     in United States diplomatic missions overseas to be filled by 
     individuals who are career Civil Service officers or Foreign 
     Service officers committed to follow-on assignments in the 
     Nonproliferation or Political Military Affairs Bureaus of the 
     Department of State.
       (c) Training.--After being selected to serve as Counselor, 
     any person so selected shall spend not less than 10 months in 
     language training courses at the Foreign Service Institute, 
     or in technical courses administered by the Department of 
     Defense, the Department of Energy, or other appropriate 
     departments and agencies of the United States, except that 
     such requirement for training may be waived by the Secretary.

     SEC. 605. PROTECTION AGAINST AGRICULTURAL BIOTERRORISM.

       Of funds made available to carry out programs under the 
     Foreign Assistance Act of 1961, $1,500,000 may be made 
     available to North Carolina State University for the purpose 
     of fingerprinting crop and livestock pathogens in order to 
     enhance the ability of the United States Government to detect 
     new strains, determine their origin, and to facilitate 
     research in pathogen epidemiology.

     SEC. 606. COMPLIANCE WITH THE CHEMICAL WEAPONS CONVENTION.

       (a) Findings.--Congress makes the following findings:
       (1) On April 24, 1997, the Senate provided its advice and 
     consent to ratification of the Chemical Weapons Convention 
     subject to the condition that no sample collected in the 
     United States pursuant to the Convention would be transferred 
     for analysis to any laboratory outside the territory of the 
     United States.
       (2) Congress enacted the same condition into law as section 
     304(f)(1) of the Chemical Weapons Convention Implementation 
     Act of 1998 (22 U.S.C. 6724(f)(1)).
       (3) Part II, paragraph 57, of the Verification Annex of the 
     Convention requires that all samples taken during a challenge 
     inspection under the Convention shall be analyzed by at least 
     two laboratories that have been designated as capable of 
     conducting such testing by the OPCW.
       (4) The only United States laboratory currently designated 
     by the OPCW is the United States Army Edgewood Forensic 
     Science Laboratory.
       (5) In order to meet the requirements of condition (18) of 
     the resolution of ratification of the Chemical Weapons 
     Convention, and section 304 of the Chemical Weapons 
     Convention Implementation Act of 1998 (22 U.S.C. 6724), the 
     United States must possess, at a minimum, a second OPCW-
     designated laboratory.
       (6) The possession of a second laboratory is necessary in 
     view of the potential for a challenge inspection to be 
     initiated against the United States by a foreign nation.
       (7) To qualify as a designated laboratory, a laboratory 
     must be certified under ISO Guide 25 or a higher standard, 
     and complete three proficiency tests. The laboratory must 
     have the full capability to handle substances listed on 
     Schedule 1 of the Annex on Schedules of Chemicals of the 
     Chemical Weapons Convention. In order to handle such 
     substances in the United States, a laboratory also must 
     operate under a bailment agreement with the United States 
     Army.
       (8) Several existing United States commercial laboratories 
     have approved quality control systems, already possess 
     bailment agreements with the United States Army, and have the 
     capabilities necessary to obtain OPCW designation.
       (9) In order to bolster the legitimacy of United States 
     analysis of samples taken on its national territory, it is 
     preferable that the second designated laboratory is not a 
     United States Government facility. Further, it is not cost-
     effective to build and equip another Government laboratory to 
     meet OPCW designation standards when such capability already 
     exists in the private sector.
       (b) Establishment of Second Designated Laboratory.--
       (1) Directive.--Not later than February 1, 2002, the United 
     States National Authority, as designated under section 101 of 
     the Chemical Weapons Convention Implementation Act of 1998 
     (22 U.S.C. 6711), shall select, through competitive 
     procedures, a commercial laboratory within the United States 
     to pursue designation by the OPCW.
       (2) Delegation.--The National Authority may delegate the 
     authority and administrative responsibility for carrying out 
     paragraph (1) to one or more of the heads of the agencies 
     described in section 101(b)(2) of the Chemical Weapons 
     Convention Implementation Act of 1998 (22 U.S.C. 6711(b)(2)).
       (3) Report.--Not later than March 1, 2002, the National 
     Authority shall submit to the appropriate committees of 
     Congress a report detailing a plan for securing OPCW 
     designation of a third United States laboratory by December 
     1, 2003.
       (c) Definitions.--In this section:
       (1) Chemical weapons convention.--The term ``Chemical 
     Weapons Convention'' means the Convention on the Prohibition 
     of Development, Production, Stockpiling and Use of Chemical 
     Weapons and on Their Destruction, Opened for Signature and 
     Signed by the United States at Paris on January 13, 1993, 
     including the following protocols and memorandum of 
     understanding:
       (A) The Annex on Chemicals.
       (B) The Annex on Implementation and Verification.
       (C) The Annex on the Protection of Confidential 
     Information.
       (D) The Resolution Establishing the Preparatory Commission 
     for the Organization for the Prohibition of Chemical Weapons.
       (E) The Text on the Establishment of a Preparatory 
     Commission.
       (2) OPCW.--The term ``OPCW'' means the Organization for the 
     Prohibition of Chemical Weapons established under the 
     Convention.

             TITLE VII--AUTHORITY TO TRANSFER NAVAL VESSELS

     SEC. 701. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN 
                   FOREIGN COUNTRIES.

       (a) Authority To Transfer.--
       (1) Brazil.--The President is authorized to transfer to the 
     Government of Brazil the ``Newport'' class tank landing ship 
     Peoria (LST1183). Such transfer shall be on a sale basis 
     under section 21 of the Arms Export Control Act (22 U.S.C. 
     2761).
       (2) Poland.--The President is authorized to transfer to the 
     Government of Poland the ``Oliver Hazard Perry'' class guided 
     missile frigate Wadsworth (FFG 9). Such transfer shall be on 
     a grant basis under section 516 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2321j).
       (3) Turkey.--The President is authorized to transfer to the 
     Government of Turkey the ``Oliver Hazard Perry'' class guided 
     missile frigates Estocin (FFG 15) and Samuel Eliot Morrison 
     (FFG 13). Each such transfer shall be on a sale basis under 
     section 21 of the Arms Export Control Act (22 U.S.C. 2761). 
     The President is further authorized to transfer to the 
     Government of Turkey the ``Knox'' class frigates Capadanno 
     (FF 1093), Thomas C. Hart (FF 1092), Donald B. Beary (FF 
     1085), McCandless (FF 1084), Reasoner (FF 1063), and Bowen 
     (FF 1079). The transfer of these 6 ``Knox'' class frigates 
     shall be on a grant basis under section 516 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321j).
       (4) Taiwan.--The President is authorized to transfer to the 
     Taipei Economic and Cultural Representative Office in the 
     United States (which is the Taiwan instrumentality designated 
     pursuant to section 10(a) of the Taiwan Relations Act) the 
     ``Kidd'' class guided missile destroyers Kidd (DDG 993), 
     Callaghan (DDG 994), Scott (DDG 995), and Chandler (DDG 996). 
     The transfer of these 4 ``Kidd'' class guided missile 
     destroyers shall be on a sale basis under section 21 of the 
     Arms Export Control Act (22 U.S.C. 2761).
       (b) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
     authority provided by subsection (a) shall not be counted for 
     the purposes of subsection (g) of that section in the 
     aggregate value of excess defense articles transferred to 
     countries under that section in any fiscal year.
       (c) Costs of Transfers.--Notwithstanding section 516(e)(1) 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j(e)(1)), any expense incurred by the United States in 
     connection with a transfer authorized to be made on a grant 
     basis under subsection (a) or (b) shall be charged to the 
     recipient.
       (d) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the country to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that country, performed at a United States Navy shipyard or 
     other shipyard located in the United States.
       (e) Expiration of Authority.--The authority provided under 
     subsection (a) shall expire at the end of the 2-year period 
     beginning on the date of the enactment of this Act.
                                  ____

  SA 3386. Mr. DASCHLE proposed an amendment to the bill H.R. 3009, to 
extend the Andean Trade Preference Act, to grant additional trade 
benefits under that Act, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Trade Act of 2002''.

     SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
                   CONTENTS.

       (a) Divisions.--This Act is organized into 3 divisions as 
     follows:
       (1) Division a.--Trade Adjustment Assistance.
       (2) Division b.--Trade Promotion Authority.

[[Page S3650]]

       (3) Division c.--Extension and Modification of Certain 
     Preferential Trade Treatment.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.

                DIVISION A--TRADE ADJUSTMENT ASSISTANCE

Sec. 101. Short title.

            TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

Sec. 111. Adjustment assistance for workers.
Sec. 112. Displaced worker self-employment training pilot program.

            TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

Sec. 201. Reauthorization of program.

         TITLE III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

Sec. 301. Purpose.
Sec. 302. Trade adjustment assistance for communities.

           TITLE IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

Sec. 401. Trade adjustment assistance for farmers.

           TITLE V--TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN

Sec. 501. Trade adjustment assistance for fishermen.

 TITLE VI--HEALTH INSURANCE COVERAGE OPTIONS FOR WORKERS ELIGIBLE FOR 
                      TRADE ADJUSTMENT ASSISTANCE

Sec. 601. Trade adjustment assistance health insurance credit.
Sec. 602. Advance payment of trade adjustment assistance health 
              insurance credit.
Sec. 603. Health insurance coverage for eligible individuals.

          TITLE VII--CONFORMING AMENDMENTS AND EFFECTIVE DATE

Sec. 701. Conforming amendments.

           TITLE VIII--SAVINGS PROVISIONS AND EFFECTIVE DATE

Sec. 801. Savings provisions.
Sec. 802. Effective date.

                      TITLE IX--REVENUE PROVISIONS

Sec. 901. Custom user fees.

                   TITLE X--MISCELLANEOUS PROVISIONS

Sec. 1001. Country of origin labeling of fish and shellfish products.
Sec. 1002. Sugar policy.

                   TITLE XI--CUSTOMS REAUTHORIZATION

Sec. 1101. Short title.

               Subtitle A--United States Customs Service

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

Sec. 1111. Authorization of appropriations for noncommercial 
              operations, commercial operations, and air and marine 
              interdiction.
Sec. 1112. Antiterrorist and illicit narcotics detection equipment for 
              the United States-Mexico border, United States-Canada 
              border, and Florida and the Gulf Coast seaports.
Sec. 1113. Compliance with performance plan requirements.

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

Sec. 1121. Authorization of appropriations for program to prevent child 
              pornography/child sexual exploitation.

                  Chapter 3--Miscellaneous Provisions

Sec. 1131. Additional Customs Service officers for United States-Canada 
              border.
Sec. 1132. Study and report relating to personnel practices of the 
              Customs Service.
Sec. 1133. Study and report relating to accounting and auditing 
              procedures of the Customs Service.
Sec. 1134. Establishment and implementation of cost accounting system; 
              reports.
Sec. 1135. Study and report relating to timeliness of prospective 
              rulings.
Sec. 1136. Study and report relating to customs user fees.

                  Chapter 4--Antiterrorism Provisions

Sec. 1141. Emergency adjustments to offices, ports of entry, or 
              staffing of the Customs Service.
Sec. 1142. Mandatory advanced electronic information for cargo and 
              passengers.
Sec. 1143. Border search authority for certain contraband in outbound 
              mail.
Sec. 1144. Authorization of appropriations for reestablishment of 
              Customs operations in New York City.

              Chapter 5--Textile Transshipment Provisions

Sec. 1151. GAO audit of textile transshipment monitoring by Customs 
              Service.
Sec. 1152. Authorization of appropriations for textile transshipment 
              enforcement operations.
Sec. 1153. Implementation of the African Growth and Opportunity Act.

      Subtitle B--Office of the United States Trade Representative

Sec. 1161. Authorization of appropriations.

        Subtitle C--United States International Trade Commission

Sec. 1171. Authorization of appropriations.

                   Subtitle D--Other Trade Provisions

Sec. 1181. Increase in aggregate value of articles exempt from duty 
              acquired abroad by United States residents.
Sec. 1182. Regulatory audit procedures.

                      Subtitle E--Sense of Senate

Sec. 1191. Sense of Senate.

            DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY

                  TITLE XXI--TRADE PROMOTION AUTHORITY

Sec. 2101. Short title; findings.
Sec. 2102. Trade negotiating objectives.
Sec. 2103. Trade agreements authority.
Sec. 2104. Consultations and assessment.
Sec. 2105. Implementation of trade agreements.
Sec. 2106. Treatment of certain trade agreements for which negotiations 
              have already begun.
Sec. 2107. Congressional oversight group.
Sec. 2108. Additional implementation and enforcement requirements.
Sec. 2109. Committee staff.
Sec. 2110. Conforming amendments.
Sec. 2111. Report on impact of trade promotion authority.
Sec. 2112. Identification of small business advocate at WTO.
Sec. 2113. Definitions.

                DIVISION C--ANDEAN TRADE PREFERENCE ACT

                  TITLE XXXI--ANDEAN TRADE PREFERENCE

Sec. 3101. Short title; findings.
Sec. 3102. Temporary provisions.
Sec. 3103. Termination.

               TITLE XXXII--MISCELLANEOUS TRADE BENEFITS

Sec. 3201. Wool provisions.
Sec. 3202. Ceiling fans.
Sec. 3203. Certain steam or other vapor generating boilers used in 
              nuclear facilities.

                   DIVISION D--AGRICULTURE ASSISTANCE

                DIVISION A--TRADE ADJUSTMENT ASSISTANCE

     SEC. 101. SHORT TITLE.

       This division may be cited as the ``Trade Adjustment 
     Assistance Reform Act of 2002''.

            TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

     SEC. 111. ADJUSTMENT ASSISTANCE FOR WORKERS.

       Chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 
     2271 et seq.) is amended to read as follows:

             ``CHAPTER 2--ADJUSTMENT ASSISTANCE FOR WORKERS

                   ``Subchapter A--General Provisions

     ``SEC. 221. DEFINITIONS.

       ``In this chapter:
       ``(1) Additional compensation.--The term `additional 
     compensation' has the meaning given that term in section 
     205(3) of the Federal-State Extended Unemployment 
     Compensation Act of 1970 (26 U.S.C. 3304 note).
       ``(2) Adversely affected employment.--The term `adversely 
     affected employment' means employment in a firm or 
     appropriate subdivision of a firm, if workers of that firm or 
     subdivision are eligible to apply for adjustment assistance 
     under this chapter.
       ``(3) Adversely affected worker.--
       ``(A) In general.--The term `adversely affected worker' 
     means a worker who is a member of a group of workers 
     certified by the Secretary under section 231(a)(1) as 
     eligible for trade adjustment assistance.
       ``(B) Adversely affected secondary worker.--The term 
     `adversely affected worker' includes an adversely affected 
     secondary worker who is a member of a group of workers 
     employed at a downstream producer or a supplier, that is 
     certified by the Secretary under section 231(a)(2) as 
     eligible for trade adjustment assistance.
       ``(4) Average weekly hours.--The term `average weekly 
     hours' means the average hours worked by a worker (excluding 
     overtime) in the employment from which the worker has been or 
     claims to have been separated in the 52 weeks (excluding 
     weeks during which the worker was on leave for purposes of 
     vacation, sickness, maternity, military service, or any other 
     employer-authorized leave) preceding the week specified in 
     paragraph (5)(B)(ii).
       ``(5) Average weekly wage.--
       ``(A) In general.--The term `average weekly wage' means \1/
     13\ of the total wages paid to an individual in the high 
     quarter.
       ``(B) Definitions.--For purposes of computing the average 
     weekly wage--
       ``(i) the term `high quarter' means the quarter in which 
     the individual's total wages were highest among the first 4 
     of the last 5 completed calendar quarters immediately 
     preceding the quarter in which occurs the week with respect 
     to which the computation is made; and
       ``(ii) the term `week' means the week in which total 
     separation occurred, or, in cases where partial separation is 
     claimed, an appropriate week, as defined in regulations 
     prescribed by the Secretary.
       ``(6) Benefit period.--The term `benefit period' means, 
     with respect to an individual, the following:
       ``(A) State law.--The benefit year and any ensuing period, 
     as determined under applicable State law, during which the 
     individual is eligible for regular compensation, additional 
     compensation, or extended compensation.
       ``(B) Federal law.--The equivalent to the benefit year or 
     ensuing period provided for

[[Page S3651]]

     under the applicable Federal unemployment insurance law.
       ``(7) Benefit year.--The term `benefit year' has the same 
     meaning given that term in the Federal-State Extended 
     Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
       ``(8) Contributed importantly.--The term `contributed 
     importantly' means a cause that is important but not 
     necessarily more important than any other cause.
       ``(9) Cooperating state.--The term `cooperating State' 
     means any State that has entered into an agreement with the 
     Secretary under section 222.
       ``(10) Customized training.--The term `customized training' 
     means training that is designed to meet the special 
     requirements of an employer (including a group of employers) 
     and that is conducted with a commitment by the employer to 
     employ an individual on successful completion of the 
     training.
       ``(11) Downstream producer.--The term `downstream producer' 
     means a firm that performs additional, value-added production 
     processes for a firm or subdivision, including a firm that 
     performs final assembly or finishing, directly for another 
     firm (or subdivision), for articles that were the basis for a 
     certification of eligibility under section 231(a)(1) of a 
     group of workers employed by such other firm.
       ``(12) Extended compensation.--The term `extended 
     compensation' has the meaning given that term in section 
     205(4) of the Federal-State Extended Unemployment 
     Compensation Act of 1970 (26 U.S.C. 3304 note).
       ``(13) Job finding club.--The term `job finding club' means 
     a job search workshop which includes a period of structured, 
     supervised activity in which participants attempt to obtain 
     jobs.
       ``(14) Job search program.--The term `job search program' 
     means a job search workshop or job finding club.
       ``(15) Job search workshop.--The term `job search workshop' 
     means a short (1- to 3-day) seminar, covering subjects such 
     as labor market information, resume writing, interviewing 
     techniques, and techniques for finding job openings, that is 
     designed to provide participants with knowledge that will 
     enable the participants to find jobs.
       ``(16) On-the-job training.--The term `on-the-job training' 
     has the same meaning as that term has in section 101(31) of 
     the Workforce Investment Act.
       ``(17) Partial separation.--A partial separation shall be 
     considered to exist with respect to an individual if--
       ``(A) the individual has had a 20-percent or greater 
     reduction in the average weekly hours worked by that 
     individual in adversely affected employment; and
       ``(B) the individual has had a 20-percent or greater 
     reduction in the average weekly wage of the individual with 
     respect to adversely affected employment.
       ``(18) Regular compensation.--The term `regular 
     compensation' has the meaning given that term in section 
     205(2) of the Federal-State Extended Unemployment 
     Compensation Act of 1970 (26 U.S.C. 3304 note).
       ``(19) Regular state unemployment.--The term `regular State 
     unemployment' means unemployment insurance benefits other 
     than an extension of unemployment insurance by a State using 
     its own funds beyond either the 26-week period mandated by 
     Federal law or any additional period provided for under the 
     Federal-State Extended Unemployment Compensation Act of 1970 
     (26 U.S.C. 3304 note).
       ``(20) Secretary.--The term `Secretary' means the Secretary 
     of Labor.
       ``(21) State.--The term `State' includes each State of the 
     United States, the District of Columbia, and the Commonwealth 
     of Puerto Rico.
       ``(22) State agency.--The term `State agency' means the 
     agency of the State that administers the State law.
       ``(23) State law.--The term `State law' means the 
     unemployment insurance law of the State approved by the 
     Secretary under section 3304 of the Internal Revenue Code of 
     1986.
       ``(24) Supplier.--The term `supplier' means a firm that 
     produces and supplies directly to another firm (or 
     subdivision) component parts for articles that were the basis 
     for a certification of eligibility under section 231(a)(1) of 
     a group of workers employed by such other firm. The term 
     `supplier' also includes a firm that has provided services 
     under a contract to a firm (or subdivision) that employs a 
     group of workers covered by a certification of eligibility 
     under section 231(a)(1).
       ``(25) Total separation.--The term `total separation' means 
     the layoff or severance of an individual from employment with 
     a firm in which or in a subdivision of which, adversely 
     affected employment exists.
       ``(26) Unemployment insurance.--The term `unemployment 
     insurance' means the unemployment compensation payable to an 
     individual under any State law or Federal unemployment 
     compensation law, including chapter 85 of title 5, United 
     States Code, and the Railroad Unemployment Insurance Act (45 
     U.S.C. 351 et seq.).
       ``(27) Week.--Except as provided in paragraph 5(B)(ii), the 
     term `week' means a week as defined in the applicable State 
     law.
       ``(28) Week of unemployment.--The term `week of 
     unemployment' means a week of total, part-total, or partial 
     unemployment as determined under the applicable State law or 
     Federal unemployment insurance law.

     ``SEC. 222. AGREEMENTS WITH STATES.

       ``(a) In General.--The Secretary is authorized on behalf of 
     the United States to enter into an agreement with any State 
     or with any State agency (referred to in this chapter as 
     `cooperating State' and `cooperating State agency', 
     respectively) to facilitate the provision of services under 
     this chapter.
       ``(b) Provisions of Agreements.--Under an agreement entered 
     into under subsection (a)--
       ``(1) the cooperating State agency as an agent of the 
     United States shall--
       ``(A) facilitate the early filing of petitions under 
     section 231(b) for any group of workers that the State 
     considers is likely to be eligible for benefits under this 
     chapter;
       ``(B) assist the Secretary in the review of any petition 
     submitted from that State by verifying the information and 
     providing other assistance as the Secretary may request;
       ``(C) advise each worker who applies for unemployment 
     insurance of the available benefits under this chapter and 
     the procedures and deadlines for applying for those benefits 
     and of the worker's potential eligibility for assistance with 
     health care coverage through the trade adjustment assistance 
     health insurance credit under section 6429 of the Internal 
     Revenue Code of 1986 or under funds made available to the 
     State to carry out section 173(f) of the Workforce Investment 
     Act of 1998;
       ``(D) receive applications for services under this chapter;
       ``(E) provide payments on the basis provided for in this 
     chapter;
       ``(F) advise each adversely affected worker to apply for 
     training under section 240, and of the deadlines for benefits 
     related to enrollment in training under this chapter;
       ``(G) ensure that the State employees with responsibility 
     for carrying out an agreement entered into under subsection 
     (a)--
       ``(i) inform adversely affected workers covered by a 
     certification issued under section 231(c) of the workers' 
     (and individual member's of the worker's family) potential 
     eligibility for--

       ``(I) medical assistance under the medicaid program 
     established under title XIX of the Social Security Act (42 
     U.S.C. 1396a et seq.);
       ``(II) child health assistance under the State children's 
     health insurance program established under title XXI of that 
     Act (42 U.S.C. 1397aa et seq.);
       ``(III) child care services for which assistance is 
     provided under the Child Care and Development Block Grant Act 
     of 1990 (42 U.S.C. 9858 et seq.);
       ``(IV) the trade adjustment assistance health insurance 
     credit under section 6429 of the Internal Revenue Code of 
     1986 and health care coverage assistance under funds made 
     available to the State to carry out section 173(f) of the 
     Workforce Investment Act of 1998; and
       ``(V) other Federal- and State-funded health care, child 
     care, transportation, and assistance programs for which the 
     workers may be eligible; and

       ``(ii) provide such workers with information regarding how 
     to apply for such assistance, services, and programs, 
     including notification that the election period for COBRA 
     continuation may be extended for certain workers under 
     section 603 of the Trade Adjustment Assistance Reform Act of 
     2002;
       ``(H) provide adversely affected workers referral to 
     training services approved under title I of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.), and any 
     other appropriate Federal or State program designed to assist 
     dislocated workers or unemployed individuals, consistent with 
     the requirements of subsection (b)(2);
       ``(I) collect and transmit to the Secretary any data as the 
     Secretary shall reasonably require to assist the Secretary in 
     assuring the effective and efficient performance of the 
     programs carried out under this chapter; and
       ``(J) otherwise actively cooperate with the Secretary and 
     with other Federal and State agencies in providing payments 
     and services under this chapter, including participation in 
     the performance measurement system established by the 
     Secretary under section 224.
       ``(2) the cooperating State shall--
       ``(A) arrange for the provision of services under this 
     chapter through the one-stop delivery system established in 
     section 134(c) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2864(c)) where available;
       ``(B) provide to adversely affected workers statewide rapid 
     response activities under section 134(a)(2)(A) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2864(a)(2)(A)) in 
     the same manner and to the same extent as any other worker 
     eligible for those activities;
       ``(C) afford adversely affected workers the services 
     provided under section 134(d) of the Workforce Investment Act 
     of 1998 (29 U.S.C. 92864(d)) in the same manner and to the 
     same extent as any other worker eligible for those services; 
     and
       ``(D) provide training services under this chapter using 
     training providers approved under title I of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.) which may 
     include community colleges, and other effective providers of 
     training services.
       ``(c) Other Provisions.--
       ``(1) Approval of training providers.--The Secretary shall 
     ensure that the training services provided by cooperating 
     States are provided by organizations approved by the 
     Secretary to effectively assist workers eligible for 
     assistance under this chapter.
       ``(2) Amendment, suspension, or termination of 
     agreements.--Each agreement entered into under this section 
     shall provide

[[Page S3652]]

     the terms and conditions upon which the agreement may be 
     amended, suspended, or terminated.
       ``(3) Effect on unemployment insurance.--Each agreement 
     entered into under this section shall provide that 
     unemployment insurance otherwise payable to any adversely 
     affected worker will not be denied or reduced for any week by 
     reason of any right to payments under this chapter.
       ``(4) Coordination of workforce investment activities.--In 
     order to promote the coordination of Workforce Investment Act 
     activities in each State with activities carried out under 
     this chapter, each agreement entered into under this section 
     shall provide that the State shall submit to the Secretary, 
     in such form as the Secretary may require, the description 
     and information described in paragraphs (8) and (14) of 
     section 112(b) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2822(b) (8) and (14)).
       ``(d) Review of State Determinations.--
       ``(1) In general.--A determination by a cooperating State 
     regarding entitlement to program benefits under this chapter 
     is subject to review in the same manner and to the same 
     extent as determinations under the applicable State law.
       ``(2) Appeal.--A review undertaken by a cooperating State 
     under paragraph (1) may be appealed to the Secretary pursuant 
     to such regulations as the Secretary may prescribe.

     ``SEC. 231. CERTIFICATION AS ADVERSELY AFFECTED WORKERS.

       ``(a) Eligibility for Certification.--
       ``(1) General rule.--A group of workers (including workers 
     in any agricultural firm or subdivision of an agricultural 
     firm) shall be certified by the Secretary as adversely 
     affected workers and eligible for trade adjustment assistance 
     benefits under this chapter pursuant to a petition filed 
     under subsection (b) if the Secretary determines that a 
     significant number or proportion of the workers in the 
     workers' firm or an appropriate subdivision of the firm have 
     become totally or partially separated, or are threatened to 
     become totally or partially separated, that either--
       ``(A)(i) the sales or production, or both, of such firm or 
     subdivision have decreased absolutely;
       ``(ii) the value or volume of imports of articles like or 
     directly competitive with articles produced by that firm or 
     subdivision have increased; and
       ``(iii) the increase in the value or volume of imports 
     described in clause (ii) contributed importantly to the 
     workers' separation or threat of separation and to the 
     decline in the sales or production of such firm or 
     subdivision; or
       ``(B) there has been a shift in production by the workers' 
     firm or subdivision to a foreign country of articles like or 
     directly competitive with articles which are produced by that 
     firm or subdivision.
       ``(2) Adversely affected secondary worker.--A group of 
     workers (including workers in any agricultural firm or 
     subdivision of an agricultural firm) shall be certified by 
     the Secretary as adversely affected and eligible for trade 
     adjustment assistance benefits under this chapter pursuant to 
     a petition filed under subsection (b) if the Secretary 
     determines that--
       ``(A) a significant number or proportion of the workers in 
     the workers' firm or an appropriate subdivision of the firm 
     have become totally or partially separated, or are threatened 
     to become totally or partially separated;
       ``(B) the workers' firm (or subdivision) is a supplier to a 
     firm (or subdivision) or downstream producer to a firm (or 
     subdivision) described in paragraph (1) (A) or (B); and
       ``(C) a loss of business with a firm (or subdivision) 
     described in paragraph (1) (A) or (B) contributed importantly 
     to the workers' separation or threat of separation determined 
     under subparagraph (A).
       ``(3) Special rule for secondary workers.--Notwithstanding 
     paragraph (2), the Secretary may, pursuant to standards 
     established by the Secretary and for good cause shown, 
     certify as eligible for trade adjustment assistance under 
     this chapter a group of workers who meet the requirements for 
     certification as adversely affected secondary workers in 
     paragraph (2), except that the Secretary has neither received 
     nor declined to certify a petition under paragraph (1) on 
     behalf of workers at a firm to which the petitioning workers' 
     firm is a supplier or downstream producer as defined in 
     section 221 (11) and (24).
       ``(4) Special provisions.--
       ``(A) Oil and natural gas producers.--For purposes of this 
     section, any firm, or appropriate subdivision of a firm, that 
     engages in exploration or drilling for oil or natural gas 
     shall be considered to be a firm producing oil or natural 
     gas.
       ``(B) Oil and natural gas imports.--For purposes of this 
     section, any firm, or appropriate subdivision of a firm, that 
     engages in exploration or drilling for oil or natural gas, or 
     otherwise produces oil or natural gas, shall be considered to 
     be producing articles directly competitive with imports of 
     oil and with imports of natural gas.
       ``(C) Taconite.--For purposes of this section, taconite 
     pellets produced in the United States shall be considered to 
     be an article that is like or directly competitive with 
     imports of semifinished steel slab.
       ``(D) Service workers.--
       ``(i) In general.--Not later than 6 months after the date 
     of enactment of the Trade Adjustment Assistance Reform Act of 
     2002, the Secretary shall establish a program to provide 
     assistance under this chapter to domestic operators of motor 
     carriers who are adversely affected by competition from 
     foreign owned and operated motor carriers.
       ``(ii) Data collection system.--Not later than 6 months 
     after the date of enactment of the Trade Adjustment 
     Assistance Reform Act of 2002, the Secretary shall put in 
     place a system to collect data on adversely affected service 
     workers that includes the number of workers by State, 
     industry, and cause of dislocation for each worker.
       ``(iii) Report.--Not later than 2 years after the date of 
     enactment of the Trade Adjustment Assistance Reform Act of 
     2002, the Secretary shall report to Congress the results of a 
     study on ways for extending the programs in this chapter to 
     adversely affected service workers, including recommendations 
     for legislation.
       ``(b) Petitions.--
       ``(1) In general.--A petition for certification of 
     eligibility for trade adjustment assistance under this 
     chapter for a group of adversely affected workers shall be 
     filed simultaneously with the Secretary and with the Governor 
     of the State in which the firm or subdivision of the firm 
     employing the workers is located.
       ``(2) Persons who may file a petition.--A petition under 
     paragraph (1) may be filed by any of the following:
       ``(A) Workers.--A group of workers (including workers in an 
     agricultural firm or subdivision of any agricultural firm).
       ``(B) Worker representatives.--The certified or recognized 
     union or other duly appointed representative of the workers.
       ``(C) Worker adjustment and retraining notification.--Any 
     entity to which notice of a plant closing or mass layoff must 
     be given under section 3 of the Worker Adjustment and 
     Retraining Notification Act (29 U.S.C. 2102).
       ``(D) Other.--Employers of workers described in 
     subparagraph (A), one-stop operators or one-stop partners (as 
     defined in section 101 of the Workforce Investment Act of 
     1998 (29 U.S.C. 2801)), or State employment agencies, on 
     behalf of the workers.
       ``(E) Request to initiate certification.--The President, or 
     the Committee on Finance of the Senate or the Committee on 
     Ways and Means of the House of Representatives (by 
     resolution), may petition the Secretary to initiate a 
     certification process under this chapter to determine the 
     eligibility for trade adjustment assistance of a group of 
     workers.
       ``(3) Actions by governor.--
       ``(A) Cooperating state.--Upon receipt of a petition, the 
     Governor of a cooperating State shall ensure that the 
     requirements of the agreement entered into under section 222 
     are met.
       ``(B) Other states.--Upon receipt of a petition, the 
     Governor of a State that has not entered into an agreement 
     under section 222 shall coordinate closely with the Secretary 
     to ensure that workers covered by a petition are--
       ``(i) provided with all available services, including rapid 
     response activities under section 134 of the Workforce 
     Investment Act (29 U.S.C. 2864);
       ``(ii) informed of the workers' (and individual member's of 
     the worker's family) potential eligibility for--

       ``(I) medical assistance under the medicaid program 
     established under title XIX of the Social Security Act (42 
     U.S.C. 1396a et seq.);
       ``(II) child health assistance under the State children's 
     health insurance program established under title XXI of that 
     Act (42 U.S.C. 1397aa et seq.);
       ``(III) child care services for which assistance is 
     provided under the Child Care and Development Block Grant Act 
     of 1990 (42 U.S.C. 9858 et seq.); and
       ``(IV) the trade adjustment assistance health insurance 
     credit under section 6429 of the Internal Revenue Code of 
     1986 and health care coverage assistance under funds made 
     available to the State to carry out section 173(f) of the 
     Workforce Investment Act of 1998; and
       ``(V) other Federal and State funded health care, child 
     care, transportation, and assistance programs that the 
     workers may be eligible for; and

       ``(iii) provided with information regarding how to apply 
     for the assistance, services, and programs described in 
     clause (ii).

     ``SEC. 232. INFORMATION TO WORKERS AND OTHER AFFECTED 
                   PARTIES.

       ``(a) In General.--The Secretary shall, in accordance with 
     the provisions of section 222 or 223, as appropriate, provide 
     prompt and full information to adversely affected workers 
     covered by a certification issued under section 231(c), 
     including information regarding--
       ``(1) benefit allowances, training, and other employment 
     services available under this chapter;
       ``(2) petition and application procedures under this 
     chapter;
       ``(3) appropriate filing dates for the allowances, 
     training, and services available under this chapter; and
       ``(4) procedures for applying for and receiving all other 
     Federal benefits and services available to separated workers 
     during a period of unemployment.
       ``(b) Assistance to Groups of Workers.--
       ``(1) In general.--The Secretary shall provide any 
     necessary assistance to enable groups of workers to prepare 
     petitions or applications for program benefits.
       ``(2) Assistance from states.--The Secretary shall ensure 
     that cooperating States

[[Page S3653]]

     fully comply with the agreements entered into under section 
     222 and shall periodically review that compliance.
       ``(c) Notice.--
       ``(1) In general.--Not later that 15 days after a 
     certification is issued under section 231 (or as soon as 
     practicable after separation), the Secretary shall provide 
     written notice of the benefits available under this chapter 
     to each worker whom the Secretary has reason to believe is 
     covered by the certification.
       ``(2) Publication of notice.--The Secretary shall publish 
     notice of the benefits available under this chapter to 
     workers covered by each certification made under section 231 
     in newspapers of general circulation in the areas in which 
     those workers reside.
       ``(3) Notice to other parties affected by these provisions 
     regarding health assistance.--The Secretary shall notify each 
     provider of health insurance within the meaning of section 
     7527 of the Internal Revenue Code of 1986 of the availability 
     of health care coverage assistance under title VI of the 
     Trade Adjustment Assistance Reform Act of 2002 and of the 
     temporary extension of the election period for COBRA 
     continuation coverage for certain workers under section 603 
     of that Act.

     ``SEC. 223. ADMINISTRATION ABSENT STATE AGREEMENT.

       ``(a) In General.--In any State in which there is no 
     agreement in force under section 222, the Secretary shall 
     arrange, under regulations prescribed by the Secretary, for 
     the performance of all necessary functions under this 
     chapter, including providing a hearing for any worker whose 
     application for payment is denied.
       ``(b) Finality of Determination.--A final determination 
     under subsection (a) regarding entitlement to program 
     benefits under this chapter is subject to review by the 
     courts in the same manner and to the same extent as is 
     provided by section 205(g) of the Social Security Act (42 
     U.S.C. 405(g)).

     ``SEC. 224. DATA COLLECTION; EVALUATIONS; REPORTS.

       ``(a) Data Collection.--The Secretary shall, pursuant to 
     regulations prescribed by the Secretary, collect any data 
     necessary to meet the requirements of this chapter.
       ``(b) Performance Evaluations.--The Secretary shall 
     establish an effective performance measuring system to 
     evaluate the following:
       ``(1) Program performance.--
       ``(A) speed of petition processing;
       ``(B) quality of petition processing;
       ``(C) cost of training programs;
       ``(D) coordination of programs under this title with 
     programs under the Workforce Investment Act (29 U.S.C. 2801 
     et seq.);
       ``(E) length of time participants take to enter and 
     complete training programs;
       ``(F) the effectiveness of individual contractors in 
     providing appropriate retraining information;
       ``(G) the effectiveness of individual approved training 
     programs in helping workers obtain employment;
       ``(H) best practices related to the provision of benefits 
     and retraining; and
       ``(I) other data to evaluate how individual States are 
     implementing the requirements of this title.
       ``(2) Participant outcomes.--
       ``(A) reemployment rates;
       ``(B) types of jobs in which displaced workers have been 
     placed;
       ``(C) wage and benefit maintenance results;
       ``(D) training completion rates; and
       ``(E) other data to evaluate how effective programs under 
     this chapter are for participants, taking into consideration 
     current economic conditions in the State.
       ``(3) Program participation data.--
       ``(A) the number of workers receiving benefits and the type 
     of benefits being received;
       ``(B) the number of workers enrolled in, and the duration 
     of, training by major types of training;
       ``(C) earnings history of workers that reflects wages 
     before separation and wages in any job obtained after 
     receiving benefits under this Act;
       ``(D) the cause of dislocation identified in each certified 
     petition;
       ``(E) the number of petitions filed and workers certified 
     in each United States congressional district; and
       ``(F) the number of workers who received waivers under each 
     category identified in section 235(c)(1) and the average 
     duration of such waivers.
       ``(c) State Participation.--The Secretary shall ensure, to 
     the extent practicable, through oversight and effective 
     internal control measures the following:
       ``(1) State participation.--Participation by each State in 
     the performance measurement system established under 
     subsection (b).
       ``(2) Monitoring.--Monitoring by each State of internal 
     control measures with respect to performance measurement data 
     collected by each State.
       ``(3) Response.--The quality and speed of the rapid 
     response provided by each State under section 134(a)(2)(A) of 
     the Workforce Investment Act of 1998 (29 U.S.C. 
     2864(a)(2)(A)).
       ``(d) Reports.--
       ``(1) Reports by the secretary.--
       ``(A) Initial report.--Not later than 6 months after the 
     date of enactment of the Trade Adjustment Assistance Reform 
     Act of 2002, the Secretary shall submit to the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives a report that--
       ``(i) describes the performance measurement system 
     established under subsection (b);
       ``(ii) includes analysis of data collected through the 
     system established under subsection (b);
       ``(iii) includes information identifying the number of 
     workers who received waivers under section 235(c) and the 
     average duration of those during the preceding year;
       ``(iv) describes and analyzes State participation in the 
     system;
       ``(v) analyzes the quality and speed of the rapid response 
     provided by each State under section 134(a)(2)(A) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2864(a)(2)(A)); 
     and
       ``(vi) provides recommendations for program improvements.
       ``(B) Annual report.--Not later than 1 year after the date 
     the report is submitted under subparagraph (A), and annually 
     thereafter, the Secretary shall submit to the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives a report that includes the 
     information collected under clauses (ii) through (v) of 
     subparagraph (A).
       ``(2) State reports.--Pursuant to regulations prescribed by 
     the Secretary, each State shall submit to the Secretary a 
     report that details its participation in the programs 
     established under this chapter, and that contains the data 
     necessary to allow the Secretary to submit the report 
     required under paragraph (1).
       ``(3) Publication.--The Secretary shall make available to 
     each State, and other public and private organizations as 
     determined by the Secretary, the data gathered and evaluated 
     through the performance measurement system established under 
     paragraph (1).

     ``SEC. 225. STUDY BY SECRETARY OF LABOR WHEN INTERNATIONAL 
                   TRADE COMMISSION BEGINS INVESTIGATION.

       ``(a) Notification of Investigation.--Whenever the 
     International Trade Commission begins an investigation under 
     section 202 with respect to an industry, the Commission shall 
     immediately notify the Secretary of that investigation, and 
     the Secretary shall immediately begin a study of--
       ``(1) the number of workers in the domestic industry 
     producing the like or directly competitive article who have 
     been or are likely to be certified as eligible for adjustment 
     assistance under this chapter; and
       ``(2) the extent to which the adjustment of those workers 
     to the import competition may be facilitated through the use 
     of existing programs.
       ``(b) Report.--
       ``(1) In general.--The Secretary shall provide a report 
     based on the study conducted under subsection (a) to the 
     President not later than 15 days after the day on which the 
     Commission makes its report under section 202(f).
       ``(2) Publication.--The Secretary shall promptly make 
     public the report provided to the President under paragraph 
     (1) (with the exception of information which the Secretary 
     determines to be confidential) and shall have a summary of 
     the report published in the Federal Register.

     ``SEC. 226. REPORT BY SECRETARY OF LABOR ON LIKELY IMPACT OF 
                   TRADE AGREEMENTS.

       ``(a) In General.--At least 90 calendar days before the day 
     on which the President enters into a trade agreement under 
     section 2103(b) of the Bipartisan Trade Promotion Authority 
     Act of 2002, the President shall provide the Secretary with 
     details of the agreement as it exists at that time and direct 
     the Secretary to prepare and submit the assessment described 
     in subsection (b). Between the time the President instructs 
     the Secretary to prepare the assessment under this section 
     and the time the Secretary submits the assessment to 
     Congress, the President shall keep the Secretary current with 
     respect to the details of the agreement.
       ``(b) Assessment.--Not later than 90 calendar days after 
     the President enters into the agreement, the Secretary shall 
     submit to the President, the Committee on Finance of the 
     Senate, the Committee on Ways and Means of the House of 
     Representatives, and the Committees on Appropriations of the 
     Senate and the House of Representatives, a report assessing 
     the likely impact of the agreement on employment in the 
     United States economy as a whole and in specific industrial 
     sectors, including the extent of worker dislocations likely 
     to result from implementation of the agreement. The report 
     shall include an estimate of the financial and administrative 
     resources necessary to provide trade adjustment assistance to 
     all potentially adversely affected workers.

                     ``Subchapter B--Certifications

     ``SEC. 231. CERTIFICATION AS ADVERSELY AFFECTED WORKERS.

       ``(a) Eligibility for Certification.--
       ``(1) General rule.--A group of workers (including workers 
     in any agricultural firm or subdivision of an agricultural 
     firm) shall be certified by the Secretary as adversely 
     affected workers and eligible for trade adjustment assistance 
     benefits under this chapter pursuant to a petition filed 
     under subsection (b) if the Secretary determines that a 
     significant number or proportion of the workers in the 
     workers' firm or an appropriate subdivision of the firm have 
     become totally or partially separated, or are threatened to 
     become totally or partially separated, and that either--

[[Page S3654]]

       ``(A)(i) the sales or production, or both, of such firm or 
     subdivision have decreased absolutely;
       ``(ii) the value or volume of imports of articles like or 
     directly competitive with articles produced by that firm or 
     subdivision have increased; and
       ``(iii) the increase in the value or volume of imports 
     described in clause (ii) contributed importantly to the 
     workers' separation or threat of separation and to the 
     decline in the sales or production of such firm or 
     subdivision; or
       ``(B) there has been a shift in production by the workers' 
     firm or subdivision to a foreign country of articles like or 
     directly competitive with articles which are produced by that 
     firm or subdivision and the shift in production contributed 
     importantly to the workers' separation or threat of 
     separation.
       ``(2) Adversely affected secondary worker.--A group of 
     workers (including workers in any agricultural firm or 
     subdivision of an agricultural firm) shall be certified by 
     the Secretary as adversely affected and eligible for trade 
     adjustment assistance benefits under this chapter pursuant to 
     a petition filed under subsection (b) if the Secretary 
     determines that--
       ``(A) a significant number or proportion of the workers in 
     the workers' firm or an appropriate subdivision of the firm 
     have become totally or partially separated, or are threatened 
     to become totally or partially separated;
       ``(B) the workers' firm (or subdivision) is a supplier or 
     downstream producer to a firm (or subdivision) that employed 
     a group of workers who received a certification of 
     eligibility under paragraph (1), and such supply or 
     production is related to the article that was the basis for 
     such certification (as defined in section 221 (11) and (24)); 
     and
       ``(C) a loss of business by the workers' firm with the firm 
     (or subdivision) described in subparagraph (B) contributed 
     importantly to the workers' separation or threat of 
     separation determined under subparagraph (A).
       ``(3) Special rule for secondary workers.--Notwithstanding 
     paragraph (2), the Secretary may, pursuant to standards 
     established by the Secretary and for good cause shown, 
     certify as eligible for trade adjustment assistance under 
     this chapter a group of workers who meet the requirements for 
     certification as adversely affected secondary workers in 
     paragraph (2), except that the Secretary has not received a 
     petition under paragraph (1) on behalf of workers at a firm 
     to which the petitioning workers' firm is a supplier or 
     downstream producer as defined in section 221 (11) and (24).
       ``(4) Special provisions.--
       ``(A) Oil and natural gas producers.--For purposes of this 
     section, any firm, or appropriate subdivision of a firm, that 
     engages in exploration or drilling for oil or natural gas 
     shall be considered to be a firm producing oil or natural 
     gas.
       ``(B) Oil and natural gas imports.--For purposes of this 
     section, any firm, or appropriate subdivision of a firm, that 
     engages in exploration or drilling for oil or natural gas, or 
     otherwise produces oil or natural gas, shall be considered to 
     be producing articles directly competitive with imports of 
     oil and with imports of natural gas.
       ``(C) Taconite.--For purposes of this section, taconite 
     pellets produced in the United States shall be considered to 
     be an article that is like or directly competitive with 
     imports of semifinished steel slab.
       ``(D) Service workers.--
       ``(i) In general.--Not later than 6 months after the date 
     of enactment of the Trade Adjustment Assistance Reform Act of 
     2002, the Secretary shall establish a program to provide 
     assistance under this chapter to domestic operators of motor 
     carriers who are adversely affected by competition from 
     foreign owned and operated motor carriers.
       ``(ii) Data collection system.--Not later than 6 months 
     after the date of enactment of the Trade Adjustment 
     Assistance Reform Act of 2002, the Secretary shall put in 
     place a system to collect data on adversely affected service 
     workers that includes the number of workers by State, 
     industry, and cause of dislocation for each worker.
       ``(iii) Report.--Not later than 2 years after the date of 
     enactment of the Trade Adjustment Assistance Reform Act of 
     2002, the Secretary shall report to Congress the results of a 
     study on ways for extending the programs in this chapter to 
     adversely affected service workers, including recommendations 
     for legislation.
       ``(b) Petitions.--
       ``(1) In general.--A petition for certification of 
     eligibility for trade adjustment assistance under this 
     chapter for a group of adversely affected workers shall be 
     filed simultaneously with the Secretary and with the Governor 
     of the State in which the firm or subdivision of the firm 
     employing the workers is located.
       ``(2) Persons who may file a petition.--A petition under 
     paragraph (1) may be filed by any of the following:
       ``(A) Workers.--A group of workers (including workers in an 
     agricultural firm or subdivision of any agricultural firm).
       ``(B) Worker representatives.--The certified or recognized 
     union or other duly appointed representative of the workers.
       ``(C) Worker adjustment and retraining notification.--Any 
     entity to which notice of a plant closing or mass layoff must 
     be given under section 3 of the Worker Adjustment and 
     Retraining Notification Act (29 U.S.C. 2102).
       ``(D) Other.--Employers of workers described in 
     subparagraph (A), one-stop operators or one-stop partners (as 
     defined in section 101 of the Workforce Investment Act of 
     1998 (29 U.S.C. 2801)), or State employment agencies, on 
     behalf of the workers.
       ``(E) Request to initiate certification.--The President, or 
     the Committee on Finance of the Senate or the Committee on 
     Ways and Means of the House of Representatives (by 
     resolution), may petition the Secretary to initiate a 
     certification process under this chapter to determine the 
     eligibility for trade adjustment assistance of a group of 
     workers.
       ``(3) Actions by governor.--
       ``(A) Cooperating state.--Upon receipt of a petition, the 
     Governor of a cooperating State shall ensure that the 
     requirements of the agreement entered into under section 222 
     are met.
       ``(B) Other states.--Upon receipt of a petition, the 
     Governor of a State that has not entered into an agreement 
     under section 222 shall coordinate closely with the Secretary 
     to ensure that workers covered by a petition are--
       ``(i) provided with all available services, including rapid 
     response activities under section 134 of the Workforce 
     Investment Act (29 U.S.C. 2864);
       ``(ii) informed of the workers' (and individual member's of 
     the worker's family) potential eligibility for--

       ``(I) medical assistance under the medicaid program 
     established under title XIX of the Social Security Act (42 
     U.S.C. 1396a et seq.);
       ``(II) child health assistance under the State children's 
     health insurance program established under title XXI of that 
     Act (42 U.S.C. 1397aa et seq.);
       ``(III) child care services for which assistance is 
     provided under the Child Care and Development Block Grant Act 
     of 1990 (42 U.S.C. 9858 et seq.); and
       ``(IV) other Federal and State funded health care, child 
     care, transportation, and assistance programs that the 
     workers may be eligible for; and

       ``(iii) provided with information regarding how to apply 
     for the assistance, services, and programs described in 
     clause (ii).
       ``(c) Actions by Secretary.--
       ``(1) In general.--As soon as possible after the date on 
     which a petition is filed under subsection (b), but not later 
     than 40 days after that date, the Secretary shall determine 
     whether the petitioning group meets the requirements of 
     subsection (a), and if warranted, shall issue a certification 
     of eligibility for trade adjustment assistance pursuant to 
     this subchapter. In making the determination, the Secretary 
     shall consult with all petitioning entities.
       ``(2) Publication of determination.--Upon making a 
     determination under paragraph (1), the Secretary shall 
     promptly publish a summary of the determination in the 
     Federal Register together with the reasons for making that 
     determination.
       ``(3) Date specified in certification.--Each certification 
     made under this subsection shall specify the date on which 
     the total or partial separation began or threatened to begin 
     with respect to a group of certified workers.
       ``(4) Projected training needs.--The Secretary shall inform 
     the State Workforce Investment Board or equivalent agency, 
     and other public or private agencies, institutions, 
     employers, and labor organizations, as appropriate, of each 
     certification issued under section 231 and of projections, if 
     available, of the need for training under section 240 as a 
     result of that certification.
       ``(d) Scope of Certification.--
       ``(1) In general.--A certification issued under subsection 
     (c) shall cover adversely affected workers in any group that 
     meets the requirements of subsection (a), whose total or 
     partial separation occurred on or after the date on which the 
     petition was filed under subsection (b).
       ``(2) Workers separated prior to certification.--A 
     certification issued under subsection (c) shall cover 
     adversely affected workers whose total or partial separation 
     occurred not more than 1 year prior to the date on which the 
     petition was filed under subsection (b).
       ``(e) Termination of Certification.--
       ``(1) In general.--If the Secretary determines, with 
     respect to any certification of eligibility, that workers 
     separated from a firm or subdivision covered by a 
     certification of eligibility are no longer adversely affected 
     workers, the Secretary shall terminate the certification.
       ``(2) Publication of termination.--The Secretary shall 
     promptly publish notice of any termination made under 
     paragraph (1) in the Federal Register together with the 
     reasons for making that determination.
       ``(3) Application.--Any determination made under paragraph 
     (1) shall apply only to total or partial separations 
     occurring after the termination date specified by the 
     Secretary.

     ``SEC. 232. BENEFIT INFORMATION TO WORKERS.

       ``(a) In General.--The Secretary shall, in accordance with 
     the provisions of section 222 or 223, as appropriate, provide 
     prompt and full information to adversely affected workers 
     covered by a certification issued under section 231(c), 
     including information regarding--
       ``(1) benefit allowances, training, and other employment 
     services available under this chapter;
       ``(2) petition and application procedures under this 
     chapter;

[[Page S3655]]

       ``(3) appropriate filing dates for the allowances, 
     training, and services available under this chapter; and
       ``(4) procedures for applying for and receiving all other 
     Federal benefits and services available to separated workers 
     during a period of unemployment.
       ``(b) Assistance to Groups of Workers.--
       ``(1) In general.--The Secretary shall provide any 
     necessary assistance to enable groups of workers to prepare 
     petitions or applications for program benefits.
       ``(2) Assistance from states.--The Secretary shall ensure 
     that cooperating States fully comply with the agreements 
     entered into under section 222 and shall periodically review 
     that compliance.
       ``(c) Notice.--
       ``(1) In general.--Not later that 15 days after a 
     certification is issued under section 231 (or as soon as 
     practicable after separation), the Secretary shall provide 
     written notice of the benefits available under this chapter 
     to each worker whom the Secretary has reason to believe is 
     covered by the certification.
       ``(2) Publication of notice.--The Secretary shall publish 
     notice of the benefits available under this chapter to 
     workers covered by each certification made under section 231 
     in newspapers of general circulation in the areas in which 
     those workers reside.

                    ``Subchapter C--Program Benefits

                      ``PART I--GENERAL PROVISIONS

     ``SEC. 234. COMPREHENSIVE ASSISTANCE.

       ``Workers covered by a certification issued by the 
     Secretary under section 231 shall be eligible for the 
     following:
       ``(1) Trade adjustment allowances as described in sections 
     235 through 238.
       ``(2) Employment services as described in section 239.
       ``(3) Training as described in section 240.
       ``(4) Job search allowances as described in section 241.
       ``(5) Relocation allowances as described in section 242.
       ``(6) Supportive services and wage insurance as described 
     in section 243.
       ``(7) Health care coverage assistance under title VI of the 
     Trade Adjustment Assistance Reform Act of 2002.

                 ``PART II--TRADE ADJUSTMENT ALLOWANCES

     ``SEC. 235. QUALIFYING REQUIREMENTS FOR WORKERS.

       ``(a) In General.--Payment of a trade adjustment allowance 
     shall be made to an adversely affected worker covered by a 
     certification under section 231 who files an application for 
     the allowance for any week of unemployment that begins more 
     than 60 days after the date on which the petition that 
     resulted in the certification was filed under section 231, if 
     the following conditions are met:
       ``(1) Time of total or partial separation from 
     employment.--The adversely affected worker's total or partial 
     separation before the worker's application under this chapter 
     occurred--
       ``(A) within the period specified in either section 231 (d) 
     (1) or (2);
       ``(B) before the expiration of the 2-year period beginning 
     on the date on which the certification under section 231 was 
     issued; and
       ``(C) before the termination date (if any) determined 
     pursuant to section 231(e).
       ``(2) Employment required.--
       ``(A) In general.--The adversely affected worker had, in 
     the 52-week period ending with the week in which the total or 
     partial separation occurred, at least 26 weeks of 
     employment at wages of $30 or more a week with a single 
     firm or subdivision of a firm.
       ``(B) Unavailability of data.--If data with respect to 
     weeks of employment with a firm are not available, the worker 
     had equivalent amounts of employment computed under 
     regulations prescribed by the Secretary.
       ``(C) Week of employment.--For the purposes of this 
     paragraph any week shall be treated as a week of employment 
     at wages of $30 or more, if an adversely affected worker--
       ``(i) is on employer-authorized leave for purposes of 
     vacation, sickness, injury, or maternity, or inactive duty 
     training or active duty for training in the Armed Forces of 
     the United States;
       ``(ii) does not work because of a disability that is 
     compensable under a workmen's compensation law or plan of a 
     State or the United States;
       ``(iii) had employment interrupted in order to serve as a 
     full-time representative of a labor organization in that firm 
     or subdivision; or
       ``(iv) is on call-up for purposes of active duty in a 
     reserve status in the Armed Forces of the United States, 
     provided that active duty is `Federal service' as defined in 
     section 8521(a)(1) of title 5, United States Code.
       ``(D) Exceptions.--
       ``(i) In the case of weeks described in clause (i) or (iii) 
     of subparagraph (C), or both, not more than 7 weeks may be 
     treated as weeks of employment under subparagraph (C).
       ``(ii) In the case of weeks described in clause (ii) or 
     (iv) of subparagraph (C), not more than 26 weeks may be 
     treated as weeks of employment under subparagraph (C).
       ``(3) Unemployment compensation.--The adversely affected 
     worker meets all of the following requirements:
       ``(A) Entitlement to unemployment insurance.--The worker 
     was entitled to (or would be entitled to if the worker 
     applied for) unemployment insurance for a week within the 
     benefit period--
       ``(i) in which total or partial separation took place; or
       ``(ii) which began (or would have begun) by reason of the 
     filing of a claim for unemployment insurance by the worker 
     after total or partial separation.
       ``(B) Exhaustion of unemployment insurance.--The worker has 
     exhausted all rights to any regular State unemployment 
     insurance to which the worker was entitled (or would be 
     entitled if the worker had applied for any regular State 
     unemployment insurance).
       ``(C) No unexpired waiting period.--The worker does not 
     have an unexpired waiting period applicable to the worker for 
     any unemployment insurance.
       ``(4) Extended unemployment compensation.--The adversely 
     affected worker, with respect to a week of unemployment, 
     would not be disqualified for extended compensation payable 
     under the Federal-State Extended Unemployment Compensation 
     Act of 1970 (26 U.S.C. 3304 note) by reason of the work 
     acceptance and job search requirements in section 202(a)(3) 
     of that Act.
       ``(5) Training.--The adversely affected worker is enrolled 
     in a training program approved by the Secretary under section 
     240(a), and the enrollment occurred not later than the latest 
     of the periods described in subparagraph (A), (B), or (C).
       ``(A) 16 weeks.--The worker enrolled not later than the 
     last day of the 16th week after the worker's most recent 
     total separation that meets the requirements of paragraphs 
     (1) and (2).
       ``(B) 8 weeks.--The worker enrolled not later than the last 
     day of the 8th week after the week in which the Secretary 
     issues a certification covering the worker.
       ``(C) Extenuating circumstances.--Notwithstanding 
     subparagraphs (A) and (B), the adversely affected worker is 
     eligible for trade adjustment assistance if the worker 
     enrolled not later than 45 days after the later of the dates 
     specified in subparagraph (A) or (B), and the Secretary 
     determines there are extenuating circumstances that justify 
     an extension in the enrollment period.
       ``(b) Failure To Participate in Training.--
       ``(1) In general.--Until the adversely affected worker 
     begins or resumes participation in a training program 
     approved under section 240(a), no trade adjustment allowance 
     may be paid under subsection (a) to an adversely affected 
     worker for any week or any succeeding week in which--
       ``(A) the Secretary determines that--
       ``(i) the adversely affected worker--

       ``(I) has failed to begin participation in a training 
     program the enrollment in which meets the requirement of 
     subsection (a)(5); or
       ``(II) has ceased to participate in such a training program 
     before completing the training program; and

       ``(ii) there is no justifiable cause for the failure or 
     cessation; or
       ``(B) the waiver issued to that worker under subsection 
     (c)(1) is revoked under subsection (c)(2).
       ``(2) Exception.--The provisions of subsection (a)(5) and 
     paragraph (1) shall not apply with respect to any week of 
     unemployment that begins before the first week following the 
     week in which the certification is issued under section 231.
       ``(c) Waivers of Training Requirements.--
       ``(1) Issuance of waivers.--The Secretary may issue a 
     written statement to an adversely affected worker waiving the 
     requirement to be enrolled in training described in 
     subsection (a) if the Secretary determines that the training 
     requirement is not feasible or appropriate for the worker, 
     because of 1 or more of the following reasons:
       ``(A) Recall.--The worker has been notified that the worker 
     will be recalled by the firm from which the separation 
     occurred.
       ``(B) Marketable skills.--The worker possesses marketable 
     skills for suitable employment (as determined pursuant to an 
     assessment of the worker, which may include the profiling 
     system under section 303(j) of the Social Security Act (42 
     U.S.C. 503(j)), carried out in accordance with guidelines 
     issued by the Secretary) and there is a reasonable 
     expectation of employment at equivalent wages in the 
     foreseeable future.
       ``(C) Retirement.--The worker is within 2 years of meeting 
     all requirements for entitlement to either--
       ``(i) old-age insurance benefits under title II of the 
     Social Security Act (42 U.S.C. 401 et seq.) (except for 
     application therefore); or
       ``(ii) a private pension sponsored by an employer or labor 
     organization.
       ``(D) Health.--The worker is unable to participate in 
     training due to the health of the worker, except that a 
     waiver under this subparagraph shall not be construed to 
     exempt a worker from requirements relating to the 
     availability for work, active search for work, or refusal to 
     accept work under Federal or State unemployment compensation 
     laws.
       ``(E) Enrollment unavailable.--The first available 
     enrollment date for the approved training of the worker is 
     within 60 days after the date of the determination made under 
     this paragraph, or, if later, there are extenuating 
     circumstances for the delay in enrollment, as determined 
     pursuant to guidelines issued by the Secretary.
       ``(F) Training not available.--Training approved by the 
     Secretary is not reasonably available to the worker from 
     either governmental agencies or private sources (which

[[Page S3656]]

     may include area vocational education schools, as defined in 
     section 3 of the Carl D. Perkins Vocational and Technical 
     Education Act of 1998 (20 U.S.C. 2302), and employers), no 
     training that is suitable for the worker is available at a 
     reasonable cost, or no training funds are available.
       ``(G) Other.--The Secretary may, at his discretion, issue a 
     waiver if the Secretary determines that a worker has set 
     forth in writing reasons other than those provided for in 
     subparagraphs (A) through (F) justifying the grant of such 
     waiver.
       ``(2) Duration of waivers.--
       ``(A) In general.--A waiver issued under paragraph (1) 
     shall be effective for not more than 6 months after the date 
     on which the waiver is issued, unless the Secretary 
     determines otherwise.
       ``(B) Revocation.--The Secretary shall revoke a waiver 
     issued under paragraph (1) if the Secretary determines that 
     the basis of a waiver is no longer applicable to the worker.
       ``(3) Amendments under section 222.--
       ``(A) Issuance by cooperating states.--Pursuant to an 
     agreement under section 222, the Secretary may authorize a 
     cooperating State to issue waivers as described in paragraph 
     (1).
       ``(B) Submission of statements.--An agreement under section 
     222 shall include a requirement that the cooperating State 
     submit to the Secretary the written statements provided under 
     paragraph (1) and a statement of the reasons for the waiver.

     ``SEC. 236. WEEKLY AMOUNTS.

       ``(a) In General.--Subject to subsections (b) and (c), the 
     trade adjustment allowance payable to an adversely affected 
     worker for a week of total unemployment shall be an amount 
     equal to the most recent weekly benefit amount of the 
     unemployment insurance payable to the worker for a week of 
     total unemployment preceding the worker's first exhaustion of 
     unemployment insurance (as determined for purposes of section 
     235(a)(3)(B)) reduced (but not below zero) by--
       ``(1) any training allowance deductible under subsection 
     (c); and
       ``(2) any income that is deductible from unemployment 
     insurance under the disqualifying income provisions of the 
     applicable State law or Federal unemployment insurance law.
       ``(b) Adjustment for Workers Receiving Training.--
       ``(1) In general.--Any adversely affected worker who is 
     entitled to a trade adjustment allowance and who is receiving 
     training approved by the Secretary, shall receive for each 
     week in which the worker is undergoing that training, a trade 
     adjustment allowance in an amount (computed for such week) 
     equal to the greater of--
       ``(A) the amount computed under subsection (a); or
       ``(B) the amount of any weekly allowance for that training 
     to which the worker would be entitled under any other Federal 
     law for the training of workers, if the worker applied for 
     that allowance.
       ``(2) Allowance paid in lieu of.--Any trade adjustment 
     allowance calculated under paragraph (1) shall be paid in 
     lieu of any training allowance to which the worker would be 
     entitled under any other Federal law.
       ``(3) Coordination with unemployment insurance.--Any week 
     in which a worker undergoing training approved by the 
     Secretary receives payments from unemployment insurance shall 
     be subtracted from the total number of weeks for which a 
     worker may receive trade adjustment allowance under this 
     chapter.
       ``(c) Adjustment for Workers Receiving Allowances Under 
     Other Federal Law.--
       ``(1) Reduction in weeks for which allowance will be 
     paid.--If a training allowance under any Federal law (other 
     than this Act) is paid to an adversely affected worker for 
     any week of unemployment with respect to which the worker 
     would be entitled (determined without regard to any 
     disqualification under section 235(b)) to a trade adjustment 
     allowance if the worker applied for that allowance, each week 
     of unemployment shall be deducted from the total number of 
     weeks of trade adjustment allowance otherwise payable to that 
     worker under section 235(a) when the worker applies for a 
     trade adjustment allowance and is determined to be entitled 
     to the allowance.
       ``(2) Payment of difference.--If the training allowance 
     paid to a worker for any week of unemployment is less than 
     the amount of the trade adjustment allowance to which the 
     worker would be entitled if the worker applied for the trade 
     adjustment allowance, the worker shall receive, when the 
     worker applies for a trade adjustment allowance and is 
     determined to be entitled to the allowance, a trade 
     adjustment allowance for that week equal to the difference 
     between the training allowance and the trade adjustment 
     allowance computed under subsection (b).

     ``SEC. 237. LIMITATIONS ON TRADE ADJUSTMENT ALLOWANCES.

       ``(a) Amount Payable.--The maximum amount of trade 
     adjustment allowance payable to an adversely affected worker, 
     with respect to the period covered by any certification, 
     shall be the amount that is the product of 104 multiplied by 
     the trade adjustment allowance payable to the worker for a 
     week of total unemployment (as determined under section 236) 
     reduced by the total sum of the regular State unemployment 
     insurance to which the worker was entitled (or would have 
     been entitled if the worker had applied for unemployment 
     insurance) in the worker's first benefit period described in 
     section 235(a)(3)(A).
       ``(b) Duration of Payments.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     trade adjustment allowance shall not be paid for any week 
     occurring after the close of the 104-week period that begins 
     with the first week following the week in which the adversely 
     affected worker was most recently totally separated--
       ``(A) within the period that is described in section 
     235(a)(1); and
       ``(B) with respect to which the worker meets the 
     requirements of section 235(a)(2).
       ``(2) Special rules.--
       ``(A) Break in training.--For purposes of this chapter, a 
     worker shall be treated as participating in a training 
     program approved by the Secretary under section 240(a) during 
     any week that is part of a break in a training that does not 
     exceed 30 days if--
       ``(i) the worker was participating in a training program 
     approved under section 240(a) before the beginning of the 
     break in training; and
       ``(ii) the break is provided under the training program.
       ``(B) On-the-job training.--No trade adjustment allowance 
     shall be paid to a worker under this chapter for any week 
     during which the worker is receiving on-the-job training, 
     except that a trade adjustment allowance shall be paid if a 
     worker is enrolled in a non-paid customized training program.
       ``(C) Small business administration pilot program.--An 
     adversely affected worker who is participating in a self-
     employment training program established by the Director of 
     the Small Business Administration pursuant to section 102 of 
     the Trade Adjustment Assistance Reform Act of 2002, shall not 
     be ineligible to receive benefits under this chapter.
       ``(c) Adjustment of Amounts Payable.--Amounts payable to an 
     adversely affected worker under this chapter shall be subject 
     to adjustment on a week-to-week basis as may be required by 
     section 236.
       ``(d) Year-End Adjustment.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act or any other provision of law, if the benefit year 
     of a worker ends within an extended benefit period, the 
     number of weeks of extended benefits that the worker would, 
     but for this subsection, be entitled to in that extended 
     benefit period shall not be reduced by the number of weeks 
     for which the worker was entitled, during that benefit year, 
     to trade adjustment allowances under this part.
       ``(2) Extended benefits period.--For the purpose of this 
     section the term `extended benefit period' has the same 
     meaning given that term in the Federal-State Extended 
     Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

     ``SEC. 238. APPLICATION OF STATE LAWS.

       ``(a) In General.--Except where inconsistent with the 
     provisions of this chapter and subject to such regulations as 
     the Secretary may prescribe, the availability and 
     disqualification provisions of the State law under which an 
     adversely affected worker is entitled to unemployment 
     insurance (whether or not the worker has filed a claim for 
     such insurance), or, if the worker is not so entitled to 
     unemployment insurance, of the State in which the worker was 
     totally or partially separated, shall apply to a worker that 
     files an application for trade adjustment assistance.
       ``(b) Duration of Applicability.--The State law determined 
     to be applicable with respect to a separation of an adversely 
     affected worker shall remain applicable for purposes of 
     subsection (a), with respect to a separation until the worker 
     becomes entitled to unemployment insurance under another 
     State law (whether or not the worker has filed a claim for 
     that insurance).

    ``PART III--EMPLOYMENT SERVICES, TRAINING, AND OTHER ALLOWANCES

     ``SEC. 239. EMPLOYMENT SERVICES.

       ``The Secretary shall, in accordance with section 222 or 
     223, as applicable, make every reasonable effort to secure 
     for adversely affected workers covered by a certification 
     under section 231, counseling, testing, placement, and other 
     services provided for under any other Federal law.

     ``SEC. 240. TRAINING.

       ``(a) Approved Training Programs.--
       ``(1) In general.--The Secretary shall approve training 
     programs that include--
       ``(A) on-the-job training or customized training;
       ``(B) any employment or training activity provided through 
     a one-stop delivery system under chapter 5 of subtitle B of 
     title I of the Workforce Investment Act of 1998 (29 U.S.C. 
     2861 et seq.);
       ``(C) any program of adult education;
       ``(D) any training program (other than a training program 
     described in paragraph (3)) for which all, or any portion, of 
     the costs of training the worker are paid--
       ``(i) under any Federal or State program other than this 
     chapter; or
       ``(ii) from any source other than this section; and
       ``(E) any other training program that the Secretary 
     determines is acceptable to meet the needs of an adversely 
     affected worker.
     In making the determination under subparagraph (E), the 
     Secretary shall consult with interested parties.
       ``(2) Training agreements.--Before approving any training 
     to which subsection (f)(1)(C) may apply, the Secretary may 
     require that the adversely affected worker

[[Page S3657]]

     enter into an agreement with the Secretary under which the 
     Secretary will not be required to pay under subsection (b) 
     the portion of the costs of the training that the worker has 
     reason to believe will be paid under the program, or by the 
     source, described in clause (i) or (ii) of subsection 
     (f)(1)(C).
       ``(3) Limitation on approvals.--The Secretary shall not 
     approve a training program if all of the following apply:
       ``(A) Payment by plan.--Any portion of the costs of the 
     training program are paid under any nongovernmental plan or 
     program.
       ``(B) Right to obtain.--The adversely affected worker has a 
     right to obtain training or funds for training under that 
     plan or program.
       ``(C) Reimbursement.--The plan or program requires the 
     worker to reimburse the plan or program from funds provided 
     under this chapter, or from wages paid under the training 
     program, for any portion of the costs of that training 
     program paid under the plan or program.
       ``(b) Payment of Training Costs.--
       ``(1) In general.--Upon approval of a training program 
     under subsection (a), and subject to the limitations imposed 
     by this section, an adversely affected worker covered by a 
     certification issued under section 231 may be eligible to 
     have payment of the costs of that training, including any 
     costs of an approved training program incurred by a worker 
     before a certification was issued under section 231, made on 
     behalf of the worker by the Secretary directly or through a 
     voucher system.
       ``(2) On-the-job training and customized training.--
       ``(A) Provision of training on the job or customized 
     training.--If the Secretary approves training under 
     subsection (a), the Secretary shall, insofar as possible, 
     provide or assure the provision of that training on the job 
     or customized training, and any training on the job or 
     customized training that is approved by the Secretary under 
     subsection (a) shall include related education necessary for 
     the acquisition of skills needed for a position within a 
     particular occupation.
       ``(B) Monthly installments.--If the Secretary approves 
     payment of any on-the-job training or customized training 
     under subsection (a), the Secretary shall pay the costs of 
     that training in equal monthly installments.
       ``(C) Limitations.--The Secretary may pay the costs of on-
     the-job training or customized training only if--
       ``(i) no employed worker is displaced by the adversely 
     affected worker (including partial displacement such as a 
     reduction in the hours of nonovertime work, wages, or 
     employment benefits);
       ``(ii) the training does not impair contracts for services 
     or collective bargaining agreements;
       ``(iii) in the case of training that would affect a 
     collective bargaining agreement, the written concurrence of 
     the labor organization concerned has been obtained;
       ``(iv) no other individual is on layoff from the same, or 
     any substantially equivalent, job for which the adversely 
     affected worker is being trained;
       ``(v) the employer has not terminated the employment of any 
     regular employee or otherwise reduced the workforce of the 
     employer with the intention of filling the vacancy so created 
     by hiring the adversely affected worker;
       ``(vi) the job for which the adversely affected worker is 
     being trained is not being created in a promotional line that 
     will infringe in any way upon the promotional opportunities 
     of employed individuals;
       ``(vii) the training is not for the same occupation from 
     which the worker was separated and with respect to which the 
     worker's group was certified pursuant to section 231;
       ``(viii) the employer is provided reimbursement of not more 
     than 50 percent of the wage rate of the participant, for the 
     cost of providing the training and additional supervision 
     related to the training;
       ``(ix) the employer has not received payment under 
     subsection (b)(1) with respect to any other on-the-job 
     training provided by the employer or customized training that 
     failed to meet the requirements of clauses (i) through (vi); 
     and
       ``(x) the employer has not taken, at any time, any action 
     that violated the terms of any certification described in 
     clause (viii) made by that employer with respect to any other 
     on-the-job training provided by the employer or customized 
     training for which the Secretary has made a payment under 
     paragraph (1).
       ``(c) Certain Workers Eligible for Training Benefits.--An 
     adversely affected worker covered by a certification issued 
     under section 231, who is not qualified to receive a trade 
     adjustment allowance under section 235, may be eligible to 
     have payment of the costs of training made under this 
     section, if the worker enters a training program approved by 
     the Secretary not later than 6 months after the date on which 
     the certification that covers the worker is issued or the 
     Secretary determines that one of the following applied:
       ``(1) Funding was not available at the time at which the 
     adversely affected worker was required to enter training 
     under paragraph (1).
       ``(2) The adversely affected worker was covered by a waiver 
     issued under section 235(c).
       ``(d) Exhaustion of Unemployment Insurance Not Required.--
     The Secretary may approve training, and pay the costs 
     thereof, for any adversely affected worker who is a member of 
     a group certified under section 231 at any time after the 
     date on which the group is certified, without regard to 
     whether the worker has exhausted all rights to any 
     unemployment insurance to which the worker is entitled.
       ``(e) Supplemental Assistance.--
       ``(1) In general.--Subject to paragraphs (2) and (3), when 
     training is provided under a training program approved by the 
     Secretary under subsection (a) in facilities that are not 
     within commuting distance of a worker's regular place of 
     residence, the Secretary may authorize supplemental 
     assistance to defray reasonable transportation and 
     subsistence expenses for separate maintenance.
       ``(2) Transportation expenses.--The Secretary may not 
     authorize payments for travel expenses exceeding the 
     prevailing mileage rate authorized under the Federal travel 
     regulations.
       ``(3) Subsistence expenses.--The Secretary may not 
     authorize payments for subsistence that exceed the lesser 
     of--
       ``(A) the actual per diem expenses for subsistence of the 
     worker; or
       ``(B) an amount equal to 50 percent of the prevailing per 
     diem allowance rate authorized under Federal travel 
     regulations.
       ``(f) Special Provisions; Limitations.--
       ``(1) Limitation on making payments.--
       ``(A) Disallowance of other payment.--If the costs of 
     training an adversely affected worker are paid by the 
     Secretary under subsection (b), no other payment for those 
     training costs may be made under any other provision of 
     Federal law.
       ``(B) No payment of reimbursable costs.--No payment for the 
     costs of approved training may be made under subsection (b) 
     if those costs--
       ``(i) have already been paid under any other provision of 
     Federal law; or
       ``(ii) are reimbursable under any other provision of 
     Federal law and a portion of those costs has already been 
     paid under that other provision of Federal law.
       ``(C) No payment of costs paid elsewhere.--The Secretary is 
     not required to pay the costs of any training approved under 
     subsection (a) to the extent that those costs are paid under 
     any Federal or State program other than this chapter.
       ``(D) Exception.--The provisions of this paragraph shall 
     not apply to, or take into account, any funds provided under 
     any other provision of Federal law that are used for any 
     purpose other than the direct payment of the costs incurred 
     in training a particular adversely affected worker, even if 
     the use of those funds has the effect of indirectly paying 
     for or reducing any portion of the costs involved in training 
     the adversely affected worker.
       ``(2) Unemployment eligibility.--A worker may not be 
     determined to be ineligible or disqualified for unemployment 
     insurance or program benefits under this subchapter because 
     the individual is in training approved under subsection (a), 
     because of leaving work which is not suitable employment to 
     enter the training, or because of the application to any week 
     in training of provisions of State law or Federal 
     unemployment insurance law relating to availability for work, 
     active search for work, or refusal to accept work.
       ``(3) Definition.--For purposes of this section the term 
     `suitable employment' means, with respect to a worker, work 
     of a substantially equal or higher skill level than the 
     worker's past adversely affected employment, and wages for 
     such work at not less than 80 percent of the worker's average 
     weekly wage.
       ``(4) Payments after reemployment.--
       ``(A) In general.--In the case of an adversely affected 
     worker who secures reemployment, the Secretary may approve 
     and pay the costs of training (or shall continue to pay the 
     costs of training previously approved) for that adversely 
     affected worker, for the completion of the training program 
     or up to 26 weeks, whichever is less, after the date the 
     adversely affected worker becomes reemployed.
       ``(B) Trade adjustment allowance.--An adversely affected 
     worker who is reemployed and is undergoing training approved 
     by the Secretary pursuant to subparagraph (A) may continue to 
     receive a trade adjustment allowance, subject to the income 
     offsets provided for in the worker's State unemployment 
     compensation law in accordance with the provisions of section 
     237.
       ``(5) Funding.--The total amount of payments that may be 
     made under this section for any fiscal year shall not exceed 
     $300,000,000.

     ``SEC. 241. JOB SEARCH ALLOWANCES.

       ``(a) Job Search Allowance Authorized.--
       ``(1) In general.--An adversely affected worker covered by 
     a certification issued under section 231 may file an 
     application with the Secretary for payment of a job search 
     allowance.
       ``(2) Approval of applications.--The Secretary may grant an 
     allowance pursuant to an application filed under paragraph 
     (1) when all of the following apply:
       ``(A) Assist adversely affected worker.--The allowance is 
     paid to assist an adversely affected worker who has been 
     totally separated in securing a job within the United States.
       ``(B) Local employment not available.--The Secretary 
     determines that the worker cannot reasonably be expected to 
     secure suitable employment in the commuting area in which the 
     worker resides.

[[Page S3658]]

       ``(C) Application.--The worker has filed an application for 
     the allowance with the Secretary before--
       ``(i) the later of--

       ``(I) the 365th day after the date of the certification 
     under which the worker is certified as eligible; or

       ``(II) the 365th day after the date of the worker's last 
     total separation; or

       ``(ii) the date that is the 182d day after the date on 
     which the worker concluded training, unless the worker 
     received a waiver under section 235(c).
       ``(b) Amount of Allowance.--
       ``(1) In general.--An allowance granted under subsection 
     (a) shall provide reimbursement to the worker of 90 percent 
     of the cost of necessary job search expenses as prescribed by 
     the Secretary in regulations.
       ``(2) Maximum allowance.--Reimbursement under this 
     subsection may not exceed $1,250 for any worker.
       ``(3) Allowance for subsistence and transportation.--
     Reimbursement under this subsection may not be made for 
     subsistence and transportation expenses at levels exceeding 
     those allowable under section 240(e).
       ``(c) Exception.--Notwithstanding subsection (b), the 
     Secretary shall reimburse any adversely affected worker for 
     necessary expenses incurred by the worker in participating in 
     a job search program approved by the Secretary.

     ``SEC. 242. RELOCATION ALLOWANCES.

       ``(a) Relocation Allowance Authorized.--
       ``(1) In general.--Any adversely affected worker covered by 
     a certification issued under section 231 may file an 
     application for a relocation allowance with the Secretary, 
     and the Secretary may grant the relocation allowance, subject 
     to the terms and conditions of this section.
       ``(2) Conditions for granting allowance.--A relocation 
     allowance may be granted if all of the following terms and 
     conditions are met:
       ``(A) Assist an adversely affected worker.--The relocation 
     allowance will assist an adversely affected worker in 
     relocating within the United States.
       ``(B) Local employment not available.--The Secretary 
     determines that the worker cannot reasonably be expected to 
     secure suitable employment in the commuting area in which the 
     worker resides.
       ``(C) Total separation.--The worker is totally separated 
     from employment at the time relocation commences.
       ``(D) Suitable employment obtained.--The worker--
       ``(i) has obtained suitable employment affording a 
     reasonable expectation of long-term duration in the area in 
     which the worker wishes to relocate; or
       ``(ii) has obtained a bona fide offer of such employment.
       ``(E) Application.--The worker filed an application with 
     the Secretary before--
       ``(i) the later of--

       ``(I) the 425th day after the date of the certification 
     under section 231; or
       ``(II) the 425th day after the date of the worker's last 
     total separation; or

       ``(ii) the date that is the 182d day after the date on 
     which the worker concluded training, unless the worker 
     received a waiver under section 235(c).
       ``(b) Amount of Allowance.--The relocation allowance 
     granted to a worker under subsection (a) includes--
       ``(1) 90 percent of the reasonable and necessary expenses 
     (including, but not limited to, subsistence and 
     transportation expenses at levels not exceeding those 
     allowable under section 240(e)) specified in regulations 
     prescribed by the Secretary, incurred in transporting the 
     worker, the worker's family, and household effects; and
       ``(2) a lump sum equivalent to 3 times the worker's average 
     weekly wage, up to a maximum payment of $1,250.
       ``(c) Limitations.--A relocation allowance may not be 
     granted to a worker unless--
       ``(1) the relocation occurs within 182 days after the 
     filing of the application for relocation assistance; or
       ``(2) the relocation occurs within 182 days after the 
     conclusion of training, if the worker entered a training 
     program approved by the Secretary under section 240(a).

     ``SEC. 243. SUPPORTIVE SERVICES; WAGE INSURANCE.

       ``(a) Supportive Services.--
       ``(1) Application.--
       ``(A) In general.--The State may, on behalf of any 
     adversely affected worker or group of workers covered by a 
     certification issued under section 231--
       ``(i) file an application with the Secretary for services 
     under section 173 of the Workforce Investment Act of 1998 
     (relating to National Emergency Grants); and
       ``(ii) provide other services under title I of the 
     Workforce Investment Act of 1998.
       ``(B) Services.--The services available under this 
     paragraph include transportation, child care, and dependent 
     care that are necessary to enable a worker to participate in 
     activities authorized under this chapter.
       ``(2) Conditions.--The Secretary may approve an application 
     filed under paragraph (1)(A)(i) and provide supportive 
     services to an adversely affected worker only if the 
     Secretary determines that all of the following apply:
       ``(A) Necessity.--Providing services is necessary to enable 
     the worker to participate in or complete training.
       ``(B) Consistent with workforce investment act.--The 
     services are consistent with the supportive services provided 
     to participants under the provisions relating to dislocated 
     worker employment and training activities set forth in 
     chapter 5 of subtitle B of title I of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2861 et seq.).
       ``(b) Wage Insurance Program.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Trade Adjustment Assistance Reform Act of 
     2002, the Secretary shall establish a Wage Insurance Program 
     under which a State shall use the funds provided to the State 
     for trade adjustment allowances to pay to an adversely 
     affected worker certified under section 231 a wage subsidy of 
     up to 50 percent of the difference between the wages received 
     by the adversely affected worker from reemployment and the 
     wages received by the adversely affected worker at the time 
     of separation for a period not to exceed 2 years.
       ``(2) Amount of payment.--
       ``(A) Wages under $40,000.--If the wages the worker 
     receives from reemployment are less than $40,000 a year, the 
     wage subsidy shall be 50 percent of the difference between 
     the amount of the wages received by the worker from 
     reemployment and the amount of the wages received by the 
     worker at the time of separation.
       ``(B) Wages between $40,000 and $50,000.--If the wages 
     received by the worker from reemployment are greater than 
     $40,000 a year but less than $50,000 a year, the wage subsidy 
     shall be 25 percent of the difference between the amount of 
     the wages received by the worker from reemployment and the 
     amount of the wages received by the worker at the time of 
     separation.
       ``(3) Eligibility.--An adversely affected worker may be 
     eligible to receive a wage subsidy under this subsection if 
     the worker--
       ``(A) enrolls in the Wage Insurance Program;
       ``(B) obtains reemployment not more than 26 weeks after the 
     date of separation from the adversely affected employment;
       ``(C) is at least 50 years of age;
       ``(D) earns not more than $50,000 a year in wages from 
     reemployment;
       ``(E) is employed at least 30 hours a week in the 
     reemployment; and
       ``(F) does not return to the employment from which the 
     worker was separated.
       ``(4) Amount of payments.--The payments made under 
     paragraph (1) to an adversely affected worker may not exceed 
     $10,000 over the 2-year period.
       ``(5) Limitation on other benefits.--At the time a worker 
     begins to receive a wage subsidy under this subsection the 
     worker shall not be eligible to receive any benefits under 
     this Act other than the wage subsidy unless the Secretary 
     determines, pursuant to standards established by the 
     Secretary, that the worker has shown circumstances that 
     warrant eligibility for training benefits under section 240.
       ``(6) Funding.--The total amount of payments that may be 
     made under this subsection for any fiscal year shall not 
     exceed $100,000,000.
       ``(c) Studies of Assistance Available to Economically 
     Distressed Workers.--
       ``(1) Study by the general accounting office.--
       ``(A) In general.--The Comptroller General of the United 
     States shall conduct a study of all assistance provided by 
     the Federal Government for workers facing job loss and 
     economic distress.
       ``(B) Report.--Not later than 1 year after the date of 
     enactment of the Trade Adjustment Assistance Reform Act of 
     2002, the Comptroller General shall submit to the Committee 
     on Finance of the Senate and the Committee on Ways and Means 
     of the House of Representatives a report on the study 
     conducted under subparagraph (A). The report shall include a 
     description of--
       ``(i) all Federal programs designed to assist workers 
     facing job loss and economic distress, including all benefits 
     and services;
       ``(ii) eligibility requirements for each of the programs; 
     and
       ``(iii) procedures for applying for and receiving benefits 
     and services under each of the programs.
       ``(C) Distribution of gao report.--The report described in 
     subparagraph (B) shall be distributed to all one-stop 
     partners authorized under the Workforce Investment Act of 
     1998.
       ``(2) Studies by the states.--
       ``(A) In general.--Each State may conduct a study of its 
     assistance programs for workers facing job loss and economic 
     distress.
       ``(B) Grants.--The Secretary may award to each State a 
     grant, not to exceed $50,000, to enable the State to conduct 
     the study described in subparagraph (A). Each study shall be 
     undertaken in consultation with affected parties.
       ``(C) Report.--Not later than 1 year after the date of the 
     grant, each State that receives a grant under subparagraph 
     (B) shall submit to the Committee on Finance of the Senate 
     and the Committee on Ways and Means of the House of 
     Representatives the report described in subparagraph (A).
       ``(D) Distribution of state reports.--A report prepared by 
     a State under this paragraph shall be distributed to all the 
     one-stop partners in the State.

           ``Subchapter D--Payment and Enforcement Provisions

     ``SEC. 244. PAYMENTS TO STATES.

       ``(a) In General.--The Secretary, from time to time, shall 
     certify to the Secretary of the Treasury for payment to each 
     cooperating State, the sums necessary to enable

[[Page S3659]]

     that State as agent of the United States to make payments 
     provided for by this chapter.
       ``(b) Limitation on Use of Funds.--
       ``(1) In general.--All money paid to a cooperating State 
     under this section shall be used solely for the purposes for 
     which it is paid.
       ``(2) Return of funds not so used.--Money paid that is not 
     used for the purpose for which it is paid under subsection 
     (a) shall be returned to the Secretary of the Treasury at the 
     time specified in the agreement entered into under section 
     222.
       ``(c) Surety Bond.--Any agreement under section 222 may 
     require any officer or employee of the cooperating State 
     certifying payments or disbursing funds under the agreement 
     or otherwise participating in the performance of the 
     agreement, to give a surety bond to the United States in an 
     amount the Secretary deems necessary, and may provide for the 
     payment of the cost of that bond from funds for carrying out 
     the purposes of this chapter.

     ``SEC. 245. LIABILITIES OF CERTIFYING AND DISBURSING 
                   OFFICERS.

       ``(a) Liability of Certifying Officials.--No person 
     designated by the Secretary, or designated pursuant to an 
     agreement entered into under section 222, as a certifying 
     officer, in the absence of gross negligence or intent to 
     defraud the United States, shall be liable with respect to 
     any payment certified by that person under this chapter.
       ``(b) Liability of Disbursing Officers.--No disbursing 
     officer, in the absence of gross negligence or intent to 
     defraud the United States, shall be liable with respect to 
     any payment by that officer under this chapter if the payment 
     was based on a voucher signed by a certifying officer 
     designated according to subsection (a).

     ``SEC. 246. FRAUD AND RECOVERY OF OVERPAYMENTS.

       ``(a) In General.--
       ``(1) Overpayment.--If a cooperating State, the Secretary, 
     or a court of competent jurisdiction determines that any 
     person has received any payment under this chapter to which 
     the person was not entitled, including a payment referred to 
     in subsection (b), that person shall be liable to repay that 
     amount to the cooperating State or the Secretary, as the case 
     may be.
       ``(2) Exception.--The cooperating State or the Secretary 
     may waive repayment if the cooperating State or the Secretary 
     determines, in accordance with guidelines prescribed by the 
     Secretary, that all of the following apply:
       ``(A) No fault.--The payment was made without fault on the 
     part of the person.
       ``(B) Repayment contrary to equity.--Requiring repayment 
     would be contrary to equity and good conscience.
       ``(3) Procedure for recovery.--
       ``(A) Recovery from other allowances authorized.--Unless an 
     overpayment is otherwise recovered or waived under paragraph 
     (2), the cooperating State or the Secretary shall recover the 
     overpayment by deductions from any sums payable to that 
     person under this chapter, under any Federal unemployment 
     compensation law administered by the cooperating State or the 
     Secretary, or under any other Federal law administered by the 
     cooperating State or the Secretary that provides for the 
     payment of assistance or an allowance with respect to 
     unemployment.
       ``(B) Recovery from state allowances authorized.--
     Notwithstanding any other provision of Federal or State law, 
     the Secretary may require a cooperating State to recover any 
     overpayment under this chapter by deduction from any 
     unemployment insurance payable to that person under State 
     law, except that no single deduction under this paragraph 
     shall exceed 50 percent of the amount otherwise payable.
       ``(b) Ineligibility for Further Payments.--Any person, in 
     addition to any other penalty provided by law, shall be 
     ineligible for any further payments under this chapter if a 
     cooperating State, the Secretary, or a court of competent 
     jurisdiction determines that one of the following applies:
       ``(1) False statement.--The person knowingly made, or 
     caused another to make, a false statement or representation 
     of a material fact, and as a result of the false statement or 
     representation, the person received any payment under this 
     chapter to which the person was not entitled.
       ``(2) Failure to disclose.--The person knowingly failed, or 
     caused another to fail, to disclose a material fact, and as a 
     result of the nondisclosure, the person received any payment 
     under this chapter to which the person was not entitled.
       ``(c) Hearing.--Except for overpayments determined by a 
     court of competent jurisdiction, no repayment may be 
     required, and no deduction may be made, under this section 
     until a determination under subsection (a) by the cooperating 
     State or the Secretary, as the case may be, has been made, 
     notice of the determination and an opportunity for a fair 
     hearing has been given to the person concerned, and the 
     determination has become final.
       ``(d) Recovered Funds.--Any amount recovered under this 
     section shall be returned to the Treasury of the United 
     States.

     ``SEC. 247. CRIMINAL PENALTIES.

       ``Whoever makes a false statement of a material fact 
     knowing it to be false, or knowingly fails to disclose a 
     material fact, for the purpose of obtaining or increasing for 
     that person or for any other person any payment authorized to 
     be furnished under this chapter or pursuant to an agreement 
     under section 222 shall be fined not more than $10,000, 
     imprisoned for not more than 1 year, or both.

     ``SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Department 
     of Labor, for the period beginning October 1, 2001, and 
     ending September 30, 2007, such sums as may be necessary to 
     carry out the purposes of this chapter, including such 
     additional sums for administrative expenses as may be 
     necessary for the department to meet the increased workload 
     created by the Trade Adjustment Assistance Reform Act of 
     2002, provided that funding provided for training services 
     shall not be used for expenses of administering the trade 
     adjustment assistance for workers program. Amounts 
     appropriated under this section shall remain available until 
     expended.

     ``SEC. 249. REGULATIONS.

       ``The Secretary shall prescribe such regulations as may be 
     necessary to carry out the provisions of this chapter.

     ``SEC. 250. SUBPOENA POWER.

       ``(a) In General.--The Secretary may require by subpoena 
     the attendance of witnesses and the production of evidence 
     necessary to make a determination under the provisions of 
     this chapter.
       ``(b) Court Order.--If a person refuses to obey a subpoena 
     issued under subsection (a), a competent United States 
     district court, upon petition by the Secretary, may issue an 
     order requiring compliance with such subpoena.''.

     SEC. 112. DISPLACED WORKER SELF-EMPLOYMENT TRAINING PILOT 
                   PROGRAM.

       (a) Establishment.--Not later than 6 months after the date 
     of enactment of this Act, the Administrator of the Small 
     Business Administration (in this section referred to as the 
     ``Administrator'') shall establish a self-employment training 
     program (in this section referred to as the ``Program'') for 
     adversely affected workers (as defined in chapter 2 of title 
     II of the Trade Act of 1974), to be administered by the Small 
     Business Administration.
       (b) Eligibility for Assistance.--If an adversely affected 
     worker seeks or receives assistance through the Program, such 
     action shall not affect the eligibility of that worker to 
     receive benefits under chapter 2 of title II of the Trade Act 
     of 1974.
       (c) Training Assistance.--The Program shall include, at a 
     minimum, training in--
       (1) pre-business startup planning;
       (2) awareness of basic credit practices and credit 
     requirements; and
       (3) developing business plans, financial packages, and 
     credit applications.
       (d) Outreach.--The Program should include outreach to 
     adversely affected workers and counseling and lending 
     partners of the Small Business Administration.
       (e) Reports to Congress.--Beginning not later than 180 days 
     after the date of enactment of this Act, the Administrator 
     shall submit quarterly reports to the Committee on Finance 
     and the Committee on Small Business and Entrepreneurship of 
     the Senate and the Committee on Ways and Means and the 
     Committee on Small Business of the House of Representatives 
     regarding the implementation of the Program, including 
     Program delivery, staffing, and administrative expenses 
     related to such implementation.
       (f) Guidelines.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator shall issue such 
     guidelines as the Administrator determines to be necessary to 
     carry out the Program.
       (g) Effective Date.--The Program shall terminate 3 years 
     after the date of final publication of guidelines under 
     subsection (f).

            TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

     SEC. 201. REAUTHORIZATION OF PROGRAM.

       (a) In General.--Section 256(b) of chapter 3 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2346(b)) is amended to read 
     as follows:
       ``(b) There are authorized to be appropriated to the 
     Secretary $16,000,000 for each of fiscal years 2002 through 
     2007, to carry out the Secretary's functions under this 
     chapter in connection with furnishing adjustment assistance 
     to firms. Amounts appropriated under this subsection shall 
     remain available until expended.''.
       (b) Eligibility Criteria.--Section 251(c) of chapter 3 of 
     title II of the Trade Act of 1974 (19 U.S.C. 2341(c)) is 
     amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) The Secretary shall certify a firm (including any 
     agricultural firm) as eligible to apply for adjustment 
     assistance under this chapter if the Secretary determines 
     that a significant number or proportion of the workers in 
     such firm have become totally or partially separated, or are 
     threatened to become totally or partially separated, and that 
     either--
       ``(A)(i)(I) sales or production, or both, of the firm have 
     decreased absolutely, or
       ``(II) sales or production, or both, of an article that 
     accounted for not less than 25 percent of the total 
     production or sales of the firm during the 12-month period 
     for which data are available have decreased absolutely; and
       ``(ii) increases in the value or volume of imports of 
     articles like or directly competitive with articles which are 
     produced by such firm contributed importantly to such total 
     or partial separation, or threat thereof, and to such decline 
     in sales or production; or
       ``(B) a shift in production by the workers' firm or 
     subdivision to a foreign country of articles like or directly 
     competitive with articles which are produced by that firm or

[[Page S3660]]

     subdivision contributed importantly to the workers' 
     separation or threat of separation.''; and
       (2) in paragraph (2), by striking ``paragraph (1)(C)'' and 
     inserting ``paragraph (1)''.

         TITLE III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

     SEC. 301. PURPOSE.

       The purpose of this title is to assist communities with 
     economic adjustment through the integration of political and 
     economic organizations, the coordination of Federal, State, 
     and local resources, the creation of community-based 
     development strategies, and the provision of economic 
     transition assistance.

     SEC. 302. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.

       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--COMMUNITY ECONOMIC ADJUSTMENT

     ``SEC. 271. DEFINITIONS.

       ``In this chapter:
       ``(1) Civilian labor force.--The term `civilian labor 
     force' has the meaning given that term in regulations 
     prescribed by the Secretary of Labor.
       ``(2) Community.--The term `community' means a county or 
     equivalent political subdivision of a State.
       ``(A) Rural community.--The term `rural community' means a 
     community that has a rural-urban continuum code of 4 through 
     9.
       ``(B) Urban community.--The term `urban community' means a 
     community that has a rural-urban continuum code of 0 through 
     3.
       ``(3) Community economic development coordinating 
     committee.--The term `Community Economic Development 
     Coordinating Committee' means a community group established 
     under section 274 that consists of major groups significantly 
     affected by an increase in imports or a shift in production, 
     including local, regional, tribal, and State governments, 
     regional councils of governments and economic development, 
     and business, labor, education, health, religious, and other 
     community-based organizations.
       ``(4) Director.--The term `Director' means the Director of 
     the Office of Community Trade Adjustment.
       ``(5) Eligible community.--The term `eligible community' 
     means a community certified under section 273 as eligible for 
     assistance under this chapter.
       ``(6) Job loss.--The term `job loss' means the total or 
     partial separation of an individual, as those terms are 
     defined in section 221.
       ``(7) Office.--The term `Office' means the Office of 
     Community Trade Adjustment established under section 272.
       ``(8) Rural-urban continuum code.--The term `rural-urban 
     continuum code' means a code assigned to a community 
     according to the rural-urban continuum code system, as 
     defined by the Economic Research Service of the Department of 
     Agriculture.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of Commerce.

     ``SEC. 272. OFFICE OF COMMUNITY TRADE ADJUSTMENT.

       ``(a) Establishment.--Within 6 months of the date of 
     enactment of the Trade Adjustment Assistance Reform Act of 
     2002, there shall be established in the Office of Economic 
     Adjustment of the Economic Development Administration of the 
     Department of Commerce an Office of Community Trade 
     Adjustment.
       ``(b) Personnel.--The Office shall be headed by a Director, 
     and shall have such staff as may be necessary to carry out 
     the responsibilities described in this chapter.
       ``(c) Coordination of Federal Response.--The Office shall--
       ``(1) provide leadership, support, and coordination for a 
     comprehensive management program to address economic 
     dislocation in eligible communities;
       ``(2) establish an easily accessible, one-stop 
     clearinghouse for States and eligible communities to obtain 
     information regarding economic development assistance 
     available under Federal law;
       ``(3) 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 
     community economic adjustment;
       ``(D) by identifying and strengthening existing agency 
     mechanisms designed to assist communities in economic 
     adjustment and workforce reemployment;
       ``(E) by applying consistent policies, practices, and 
     procedures in the administration of Federal programs that are 
     used to assist communities adversely impacted by an increase 
     in imports or a shift in production;
       ``(F) by creating, maintaining, and using a uniform 
     economic database to analyze community adjustment activities; 
     and
       ``(G) by assigning a community economic adjustment advisor 
     to work with each eligible community;
       ``(4) provide comprehensive technical assistance to any 
     eligible community in the efforts of that community to--
       ``(A) identify serious economic problems in the community 
     that result from an increase in imports or shift in 
     production;
       ``(B) integrate the major groups and organizations 
     significantly affected by the economic adjustment;
       ``(C) organize a Community Economic Development 
     Coordinating Committee;
       ``(D) access Federal, State, and local resources designed 
     to assist in economic development and trade adjustment 
     assistance;
       ``(E) diversify and strengthen the community economy; and
       ``(F) develop a community-based strategic plan to address 
     workforce dislocation and economic development;
       ``(5) establish specific criteria for submission and 
     evaluation of a strategic plan submitted under section 
     276(d);
       ``(6) administer the grant programs established under 
     sections 276 and 277; and
       ``(7) establish an interagency Trade Adjustment Assistance 
     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 Defense, 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, the Office of 
     the United States Trade Representative, and the National 
     Economic Council.
       ``(d) Working Group.--The working group established under 
     subsection (c)(7) shall examine other options for addressing 
     trade impacts on communities, such as:
       ``(1) Seeking legislative language directing the Foreign 
     Trade Zone (`FTZ') Board to expedite consideration of FTZ 
     applications from communities or businesses that have been 
     found eligible for trade adjustment assistance.
       ``(2) Seeking legislative language to make new markets tax 
     credits available in communities impacted by trade.
       ``(3) Seeking legislative language to make work opportunity 
     tax credits available for hiring unemployed workers who are 
     certified eligible for trade adjustment assistance.
       ``(4) Examining ways to assist trade impacted rural 
     communities and industries take advantage of the Department 
     of Agriculture's rural development program.

     ``SEC. 273. NOTIFICATION AND CERTIFICATION AS AN ELIGIBLE 
                   COMMUNITY.

       ``(a) Notification.--The Secretary of Labor, not later than 
     15 days after making a determination that a group of workers 
     is eligible for trade adjustment assistance under section 
     231, shall notify the Governor of the State in which the 
     community in which the worker's firm is located and the 
     Director, of the Secretary's determination.
       ``(b) Certification.--Not later than 30 days after 
     notification by the Secretary of Labor described in 
     subsection (a), the Director shall certify as eligible for 
     assistance under this chapter a community in which both of 
     the following conditions applies:
       ``(1) Number of job losses.--The Director finds that--
       ``(A) in an urban community, at least 500 workers have been 
     certified for assistance under section 231 in the most recent 
     36-month period preceding the date of certification under 
     this section for which data are available; or
       ``(B) in a rural community, at least 300 workers have been 
     certified for assistance under section 231 in the most recent 
     36-month period preceding the date of certification under 
     this section for which data are available.
       ``(2) Percent of workforce unemployed.--The Director finds 
     that the unemployment rate for the community is at least 1 
     percent greater than the national unemployment rate for the 
     most recent 12-month period for which data are available.
       ``(c) Notification to Eligible Communities.--Not later than 
     15 days after the Director certifies a community as eligible 
     under subsection (b), the Director shall notify the 
     community--
       ``(1) of its determination under subsection (b);
       ``(2) of the provisions of this chapter;
       ``(3) how to access the clearinghouse established under 
     section 272(c)(2); and
       ``(4) how to obtain technical assistance provided under 
     section 272(c)(4).

     ``SEC. 274. COMMUNITY ECONOMIC DEVELOPMENT COORDINATING 
                   COMMITTEE.

       ``(a) Establishment.--In order to apply for and receive 
     benefits under this chapter, an eligible community shall 
     establish a Community Economic Development Coordinating 
     Committee certified by the Director as meeting the 
     requirements of subsection (b)(1).
       ``(b) Composition of the Committee.--
       ``(1) Local participation.--The Community Economic 
     Development Coordinating Committee established by an eligible 
     community under subsection (a) shall include representatives 
     of those groups significantly affected by economic 
     dislocation, such as local, regional, tribal, and State 
     governments, regional councils of governments and economic 
     development, business, labor, education, health 
     organizations, religious, and other community-based groups 
     providing assistance to workers, their families, and 
     communities.
       ``(2) Federal participation.--Pursuant to section 
     275(b)(3), the community economic adjustment advisor, 
     assigned by the Director to assist an eligible community, 
     shall serve

[[Page S3661]]

     as an ex officio member of the Community Economic Development 
     Coordinating Committee, and shall arrange for participation 
     by representatives of other Federal agencies on that 
     Committee as necessary.
       ``(3) Existing organization.--An eligible community may 
     designate an existing organization in that community as the 
     Community Economic Development Coordinating Committee if that 
     organization meets the requirements of paragraph (1) for the 
     purposes of this chapter.
       ``(c) Duties.--The Community Economic Development 
     Coordinating Committee shall--
       ``(1) ascertain the severity of the community economic 
     adjustment required as a result of the increase in imports or 
     shift in production;
       ``(2) assess the capacity of the community to respond to 
     the required economic adjustment and the needs of the 
     community as it undertakes economic adjustment, taking into 
     consideration such factors as the number of jobs lost, the 
     size of the community, the diversity of industries, the 
     skills of the labor force, the condition of the current labor 
     market, the availability of financial resources, the quality 
     and availability of educational facilities, the adequacy and 
     availability of public services, and the existence of a basic 
     and advanced infrastructure in the community;
       ``(3) facilitate a dialogue between concerned interests in 
     the community, represent the impacted community, and ensure 
     all interests in the community work collaboratively toward 
     collective goals without duplication of effort or resources;
       ``(4) oversee the development of a strategic plan for 
     community economic development, taking into consideration the 
     factors mentioned under paragraph (2), and consistent with 
     the criteria established by the Secretary for the strategic 
     plan developed under section 276;
       ``(5) create an executive council of members of the 
     Community Economic Development Coordinating Committee to 
     promote the strategic plan within the community and ensure 
     coordination and cooperation among all stakeholders; and
       ``(6) apply for any grant, loan, or loan guarantee 
     available under Federal law to develop or implement the 
     strategic plan, and be an eligible recipient for funding for 
     economic adjustment for that community.

     ``SEC. 275. COMMUNITY ECONOMIC ADJUSTMENT ADVISORS.

       ``(a) In General.--Pursuant to section 272(c)(3)(G), the 
     Director shall assign a community economic adjustment advisor 
     to each eligible community.
       ``(b) Duties.--The community economic adjustment advisor 
     shall--
       ``(1) provide technical assistance to the eligible 
     community, assist in the development and implementation of a 
     strategic plan, including applying for any grant available 
     under this or any other Federal law to develop or implement 
     that plan;
       ``(2) at the local and regional level, coordinate the 
     response of all Federal agencies offering assistance to the 
     eligible community;
       ``(3) serve as an ex officio member of the Community 
     Economic Development Coordinating Committee established by an 
     eligible community under section 274;
       ``(4) act as liaison between the Community Economic 
     Development Coordinating Committee established by the 
     eligible community and all other Federal agencies that offer 
     assistance to eligible communities, including the Department 
     of Agriculture, the Department of Defense, 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 National Economic Council, and other 
     offices or agencies of the Department of Commerce;
       ``(5) report regularly to the Director regarding the 
     progress of development activities in the community to which 
     the community economic adjustment advisor is assigned; and
       ``(6) perform other duties as directed by the Secretary or 
     the Director.

     ``SEC. 276. STRATEGIC PLANS.

       ``(a) In General.--With the assistance of the community 
     economic adjustment advisor, 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, the anticipated management structure of the Community 
     Economic Development Coordinating Committee, and the 
     commitment of the community to the strategic plan over the 
     long term.
       ``(2) A description of, and a plan to accomplish, the 
     projects to be undertaken by the eligible community.
       ``(3) 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.
       ``(4) A description of any alternative development plans 
     that were considered, particularly less costly alternatives, 
     and why those plans were rejected in favor of the proposed 
     plan.
       ``(5) A description of any additional steps the eligible 
     community will take to achieve economic adjustment and 
     diversification, including how the plan and the projects will 
     contribute to establishing or maintaining a level of public 
     services necessary to attract and retain economic investment.
       ``(6) A description and justification for the cost and 
     timing of proposed basic and advanced infrastructure 
     improvements in the eligible community.
       ``(7) A description of the occupational and workforce 
     conditions in the eligible community, including but not 
     limited to existing levels of workforce skills and 
     competencies, and educational programs available for 
     workforce training and future employment needs.
       ``(8) A description of how the plan will adapt to changing 
     markets, business cycles, and other variables.
       ``(9) 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.--
       ``(1) In general.--The Director, upon receipt of an 
     application from a Community Economic Development 
     Coordinating Committee on behalf of an eligible community, 
     shall award a grant to that community to be used to develop 
     the strategic plan.
       ``(2) Amount.--The amount of a grant made under paragraph 
     (1) shall be determined by the Secretary, but may not exceed 
     $50,000 to each community.
       ``(3) Limit.--Each community can only receive 1 grant under 
     this subsection for the purpose of developing a strategic 
     plan in any 5-year period.
       ``(d) Submission of Plan.--A strategic plan developed under 
     subsection (a) shall be submitted to the Director for 
     evaluation and approval.

     ``SEC. 277. GRANTS FOR ECONOMIC DEVELOPMENT.

       ``The Director, upon receipt of an application from the 
     Community Economic Development Coordinating Committee on 
     behalf of an eligible community, may award a grant to that 
     community to carry out any project or program included in the 
     strategic plan approved under section 276(d) that--
       ``(1) will be located in, or will create or preserve high-
     wage jobs, in that eligible community; and
       ``(2) implements the strategy of that eligible community to 
     create high-wage jobs in sectors that are expected to expand, 
     including projects that--
       ``(A) encourage industries to locate in that eligible 
     community, if such funds are not used to encourage the 
     relocation of any employer in a manner that causes the 
     dislocation of employees of that employer at another facility 
     in the United States;
       ``(B) leverage resources to create or improve Internet or 
     telecommunications capabilities to make the community more 
     attractive for business;
       ``(C) establish a funding pool for job creation through 
     entrepreneurial activities;
       ``(D) assist existing firms in that community to 
     restructure or retool to become more competitive in world 
     markets and prevent job loss; or
       ``(E) assist the community in acquiring the resources and 
     providing the level of public services necessary to meet the 
     objectives set out in the strategic plan.

     ``SEC. 278. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Department 
     of Commerce, for the period beginning October 1, 2001, and 
     ending September 30, 2007, such sums as may be necessary to 
     carry out the purposes of this chapter.

     ``SEC. 279. GENERAL PROVISIONS.

       ``(a) Report by the Director.--Not later than 6 months 
     after the date of enactment of the Trade Adjustment 
     Assistance Reform Act of 2002, and annually thereafter, the 
     Director shall submit to the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives a report regarding the programs established 
     under this title.
       ``(b) Regulations.--The Secretary shall prescribe such 
     regulations as are necessary to carry out the provisions of 
     this chapter.
       ``(c) 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.''.

           TITLE IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

     SEC. 401. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.

       (a) In General.--Title II of the Trade Act of 1974 (19 
     U.S.C. 2251 et seq.) is amended by adding at the end the 
     following new chapter:

             ``CHAPTER 6--ADJUSTMENT ASSISTANCE FOR FARMERS

     ``SEC. 291. DEFINITIONS.

       ``In this chapter:
       ``(1) Agricultural commodity.--The term `agricultural 
     commodity' means any agricultural commodity (including 
     livestock), except fish as defined in section 299(1) of this 
     Act, in its raw or natural state.
       ``(2) Agricultural commodity producer.--The term 
     `agricultural commodity producer' has the same meaning as the 
     term `person' as prescribed by regulations promulgated under 
     section 1001(5) of the Food Security Act of 1985 (7 U.S.C. 
     1308(5)). The term does not include any person described in 
     section 299(2) of this Act.

[[Page S3662]]

       ``(3) Contributed importantly.--
       ``(A) In general.--The term `contributed importantly' means 
     a cause which is important but not necessarily more important 
     than any other cause.
       ``(B) Determination of contributed importantly.--The 
     determination of whether imports of articles like or directly 
     competitive with an agricultural commodity with respect to 
     which a petition under this chapter was filed contributed 
     importantly to a decline in the price of the agricultural 
     commodity shall be made by the Secretary.
       ``(4) Duly authorized representative.--The term `duly 
     authorized representative' means an association of 
     agricultural commodity producers.
       ``(5) National average price.--The term `national average 
     price' means the national average price paid to an 
     agricultural commodity producer for an agricultural commodity 
     in a marketing year as determined by the Secretary.
       ``(6) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.

     ``SEC. 292. PETITIONS; GROUP ELIGIBILITY.

       ``(a) In General.--A petition for a certification of 
     eligibility to apply for adjustment assistance under this 
     chapter may be filed with the Secretary by a group of 
     agricultural commodity producers or by their duly authorized 
     representative. Upon receipt of the petition, the Secretary 
     shall promptly publish notice in the Federal Register that 
     the Secretary has received the petition and initiated an 
     investigation.
       ``(b) Hearings.--If the petitioner, or any other person 
     found by the Secretary to have a substantial interest in the 
     proceedings, submits not later than 10 days after the date of 
     the Secretary's publication under subsection (a) a request 
     for a hearing, the Secretary shall provide for a public 
     hearing and afford such interested person an opportunity to 
     be present, to produce evidence, and to be heard.
       ``(c) Group Eligibility Requirements.--The Secretary shall 
     certify a group of agricultural commodity producers as 
     eligible to apply for adjustment assistance under this 
     chapter if the Secretary determines--
       ``(1) that the national average price for the agricultural 
     commodity, or a class of goods within the agricultural 
     commodity, produced by the group for the most recent 
     marketing year for which the national average price is 
     available is less than 80 percent of the average of the 
     national average price for such agricultural commodity, or 
     such class of goods, for the 5 marketing years preceding the 
     most recent marketing year; and
       ``(2) that increases in imports of articles like or 
     directly competitive with the agricultural commodity, or 
     class of goods within the agricultural commodity, produced by 
     the group contributed importantly to the decline in price 
     described in paragraph (1).
       ``(d) Special Rule for Qualified Subsequent Years.--A group 
     of agricultural commodity producers certified as eligible 
     under section 293 shall be eligible to apply for assistance 
     under this chapter in any qualified year after the year the 
     group is first certified, if the Secretary determines that--
       ``(1) the national average price for the agricultural 
     commodity, or class of goods within the agricultural 
     commodity, produced by the group for the most recent 
     marketing year for which the national average price is 
     available is equal to or less than the price determined under 
     subsection (c)(1); and
       ``(2) the requirements of subsection (c)(2) are met.
       ``(e) Determination of Qualified Year and Commodity.--In 
     this chapter:
       ``(1) Qualified year.--The term `qualified year', with 
     respect to a group of agricultural commodity producers 
     certified as eligible under section 293, means each 
     consecutive year after the year in which the group is 
     certified that the Secretary makes the determination under 
     subsection (c) or (d), as the case may be.
       ``(2) Classes of goods within a commodity.--In any case in 
     which there are separate classes of goods within an 
     agricultural commodity, the Secretary shall treat each class 
     as a separate commodity in determining group eligibility, the 
     national average price, and level of imports under this 
     section and section 296.

     ``SEC. 293. DETERMINATIONS BY SECRETARY OF AGRICULTURE.

       ``(a) In General.--As soon as practicable after the date on 
     which a petition is filed under section 292, but in any event 
     not later than 40 days after that date, the Secretary shall 
     determine whether the petitioning group meets the 
     requirements of section 292 (c) or (d), as the case may be, 
     and shall, if the group meets the requirements, issue a 
     certification of eligibility to apply for assistance under 
     this chapter covering agricultural commodity producers in any 
     group that meets the requirements. Each certification shall 
     specify the date on which eligibility under this chapter 
     begins.
       ``(b) Notice.--Upon making a determination on a petition, 
     the Secretary shall promptly publish a summary of the 
     determination in the Federal Register, together with the 
     Secretary's reasons for making the determination.
       ``(c) Termination of Certification.--Whenever the Secretary 
     determines, with respect to any certification of eligibility 
     under this chapter, that the decline in price for the 
     agricultural commodity covered by the certification is no 
     longer attributable to the conditions described in section 
     292, the Secretary shall terminate such certification and 
     promptly cause notice of such termination to be published in 
     the Federal Register, together with the Secretary's reasons 
     for making such determination.

     ``SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN 
                   INTERNATIONAL TRADE COMMISSION BEGINS 
                   INVESTIGATION.

       ``(a) In General.--Whenever the International Trade 
     Commission (in this chapter referred to as the `Commission') 
     begins an investigation under section 202 with respect to an 
     agricultural commodity, the Commission shall immediately 
     notify the Secretary of the investigation. Upon receipt of 
     the notification, the Secretary shall immediately conduct a 
     study of--
       ``(1) the number of agricultural commodity producers 
     producing a like or directly competitive agricultural 
     commodity who have been or are likely to be certified as 
     eligible for adjustment assistance under this chapter, and
       ``(2) the extent to which the adjustment of such producers 
     to the import competition may be facilitated through the use 
     of existing programs.
       ``(b) Report.--Not later than 15 days after the day on 
     which the Commission makes its report under section 202(f), 
     the Secretary shall submit a report to the President setting 
     forth the findings of the study described in subsection (a). 
     Upon making the report to the President, the Secretary shall 
     also promptly make the report public (with the exception of 
     information which the Secretary determines to be 
     confidential) and shall have a summary of the report 
     published in the Federal Register.

     ``SEC. 295. BENEFIT INFORMATION TO AGRICULTURAL COMMODITY 
                   PRODUCERS.

       ``(a) In General.--The Secretary shall provide full 
     information to producers about the benefit allowances, 
     training, and other employment services available under this 
     title and about the petition and application procedures, and 
     the appropriate filing dates, for such allowances, training, 
     and services. The Secretary shall provide whatever assistance 
     is necessary to enable groups to prepare petitions or 
     applications for program benefits under this title.
       ``(b) Notice of Benefits.--
       ``(1) In general.--The Secretary shall mail written notice 
     of the benefits available under this chapter to each 
     agricultural commodity producer that the Secretary has reason 
     to believe is covered by a certification made under this 
     chapter.
       ``(2) Other notice.--The Secretary shall publish notice of 
     the benefits available under this chapter to agricultural 
     commodity producers that are covered by each certification 
     made under this chapter in newspapers of general circulation 
     in the areas in which such producers reside.
       ``(3) Other federal assistance.--The Secretary shall also 
     provide information concerning procedures for applying for 
     and receiving all other Federal assistance and services 
     available to workers facing economic distress.

     ``SEC. 296. QUALIFYING REQUIREMENTS FOR AGRICULTURAL 
                   COMMODITY PRODUCERS.

       ``(a) In General.--
       ``(1) Requirements.--Payment of a trade adjustment 
     allowance shall be made to an adversely affected agricultural 
     commodity producer covered by a certification under this 
     chapter who files an application for such allowance within 90 
     days after the date on which the Secretary makes a 
     determination and issues a certification of eligibility under 
     section 293, if the following conditions are met:
       ``(A) The producer submits to the Secretary sufficient 
     information to establish the amount of agricultural commodity 
     covered by the application filed under subsection (a) that 
     was produced by the producer in the most recent year.
       ``(B) The producer certifies that the producer has not 
     received cash benefits under any provision of this title 
     other than this chapter.
       ``(C) The producer's net farm income (as determined by the 
     Secretary) for the most recent year is less than the 
     producer's net farm income for the latest year in which no 
     adjustment assistance was received by the producer under this 
     chapter.
       ``(D) The producer certifies that the producer has met with 
     an Extension Service employee or agent to obtain, at no cost 
     to the producer, information and technical assistance that 
     will assist the producer in adjusting to import competition 
     with respect to the adversely affected agricultural 
     commodity, including--
       ``(i) information regarding the feasibility and 
     desirability of substituting 1 or more alternative 
     commodities for the adversely affected agricultural 
     commodity; and
       ``(ii) technical assistance that will improve the 
     competitiveness of the production and marketing of the 
     adversely affected agricultural commodity by the producer, 
     including yield and marketing improvements.
       ``(2) Limitation.--
       ``(A) In general.--Notwithstanding any other provision of 
     this chapter, an agricultural commodity producer shall not be 
     eligible for assistance under this chapter in any year in 
     which the average adjusted gross income of the producer 
     exceeds $2,500,000.
       ``(B) Certification.--To comply with the limitation under 
     subparagraph (A), an individual or entity shall provide to 
     the Secretary--

[[Page S3663]]

       ``(i) a certification by a certified public accountant or 
     another third party that is acceptable to the Secretary that 
     the average adjusted gross income of the producer does not 
     exceed $2,500,000; or
       ``(ii) information and documentation regarding the adjusted 
     gross income of the producer through other procedures 
     established by the Secretary.
       ``(C) Definitions.--In this subsection:
       ``(i) Adjusted gross income.--The term `adjusted gross 
     income' means adjusted gross income of an agricultural 
     commodity producer--

       ``(I) as defined in section 62 of the Internal Revenue Code 
     of 1986 and implemented in accordance with procedures 
     established by the Secretary; and
       ``(II) that is earned directly or indirectly from all 
     agricultural and nonagricultural sources of an individual or 
     entity for a fiscal or corresponding crop year.

       ``(ii) Average adjusted gross income.--

       ``(I) In general.--The term `average adjusted gross income' 
     means the average adjusted gross income of a producer for 
     each of the 3 preceding taxable years.
       ``(II) Effective adjusted gross income.--In the case of a 
     producer that does not have an adjusted gross income for each 
     of the 3 preceding taxable years, the Secretary shall 
     establish rules that provide the producer with an effective 
     adjusted gross income for the applicable year.

       ``(b) Amount of Cash Benefits.--
       ``(1) In general.--Subject to the provisions of section 
     298, an adversely affected agricultural commodity producer 
     described in subsection (a) shall be entitled to adjustment 
     assistance under this chapter in an amount equal to the 
     product of--
       ``(A) one-half of the difference between--
       ``(i) an amount equal to 80 percent of the average of the 
     national average price of the agricultural commodity covered 
     by the application described in subsection (a) for the 5 
     marketing years preceding the most recent marketing year, and
       ``(ii) the national average price of the agricultural 
     commodity for the most recent marketing year, and
       ``(B) the amount of the agricultural commodity produced by 
     the agricultural commodity producer in the most recent 
     marketing year.
       ``(2) Special rule for subsequent qualified years.--The 
     amount of cash benefits for a qualified year shall be 
     determined in the same manner as cash benefits are determined 
     under paragraph (1) except that the average national price of 
     the agricultural commodity shall be determined under 
     paragraph (1)(A)(i) by using the 5-marketing-year period used 
     to determine the amount of cash benefits for the first 
     certification.
       ``(c) Maximum Amount of Cash Assistance.--The maximum 
     amount of cash benefits an agricultural commodity producer 
     may receive in any 12-month period shall not exceed $10,000.
       ``(d) Limitations on Other Assistance.--An agricultural 
     commodity producer entitled to receive a cash benefit under 
     this chapter--
       ``(1) shall not be eligible for any other cash benefit 
     under this title, and
       ``(2) shall be entitled to employment services and training 
     benefits under part III of subchapter C of chapter 2.

     ``SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS.

       ``(a) In General.--
       ``(1) Repayment.--If the Secretary, or a court of competent 
     jurisdiction, determines that any person has received any 
     payment under this chapter to which the person was not 
     entitled, such person shall be liable to repay such amount to 
     the Secretary, except that the Secretary may waive such 
     repayment if the Secretary determines, in accordance with 
     guidelines prescribed by the Secretary, that--
       ``(A) the payment was made without fault on the part of 
     such person; and
       ``(B) requiring such repayment would be contrary to equity 
     and good conscience.
       ``(2) Recovery of overpayment.--Unless an overpayment is 
     otherwise recovered, or waived under paragraph (1), the 
     Secretary shall recover the overpayment by deductions from 
     any sums payable to such person under this chapter.
       ``(b) False Statement.--A person shall, in addition to any 
     other penalty provided by law, be ineligible for any further 
     payments under this chapter--
       ``(1) if the Secretary, or a court of competent 
     jurisdiction, determines that the person--
       ``(A) knowingly has made, or caused another to make, a 
     false statement or representation of a material fact; or
       ``(B) knowingly has failed, or caused another to fail, to 
     disclose a material fact; and
       ``(2) as a result of such false statement or 
     representation, or of such nondisclosure, such person has 
     received any payment under this chapter to which the person 
     was not entitled.
       ``(c) Notice and Determination.--Except for overpayments 
     determined by a court of competent jurisdiction, no repayment 
     may be required, and no deduction may be made, under this 
     section until a determination under subsection (a)(1) by the 
     Secretary has been made, notice of the determination and an 
     opportunity for a fair hearing thereon has been given to the 
     person concerned, and the determination has become final.
       ``(d) Payment to Treasury.--Any amount recovered under this 
     section shall be returned to the Treasury of the United 
     States.
       ``(e) Penalties.--Whoever makes a false statement of a 
     material fact knowing it to be false, or knowingly fails to 
     disclose a material fact, for the purpose of obtaining or 
     increasing for himself or for any other person any payment 
     authorized to be furnished under this chapter shall be fined 
     not more than $10,000 or imprisoned for not more than 1 year, 
     or both.

     ``SEC. 298. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     and there are appropriated to the Department of Agriculture 
     not to exceed $90,000,000 for each of the fiscal years 2002 
     through 2007 to carry out the purposes of this chapter.
       ``(b) Proportionate Reduction.--If in any year, the amount 
     appropriated under this chapter is insufficient to meet the 
     requirements for adjustment assistance payable under this 
     chapter, the amount of assistance payable under this chapter 
     shall be reduced proportionately.''.
       (b) Effective Date.--The amendments made by this title 
     shall take effect on the date that is 180 days after the date 
     of enactment of this Act.

           TITLE V--TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN

     SEC. 501. TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN.

       (a) In General.--Title II of the Trade Act of 1974 (19 
     U.S.C. 2251 et seq.), as amended by title IV of this Act, is 
     amended by adding at the end the following new chapter:

            ``CHAPTER 7--ADJUSTMENT ASSISTANCE FOR FISHERMEN

     ``SEC. 299. DEFINITIONS.

       ``In this chapter:
       ``(1) 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).
       ``(2) Producer.--The term `producer' means any person who--
       ``(A) is engaged in commercial fishing; or
       ``(B) is a United States fish processor.
       ``(3) Contributed importantly.--
       ``(A) In general.--The term `contributed importantly' means 
     a cause which is important but not necessarily more important 
     than any other cause.
       ``(B) Determination of contributed importantly.--The 
     determination of whether imports of articles like or directly 
     competitive with a fish caught through commercial fishing or 
     processed by a United States fish processor with respect to 
     which a petition under this chapter was filed contributed 
     importantly to a decline in the price of the fish shall be 
     made by the Secretary.
       ``(4) Duly authorized representative.--The term `duly 
     authorized representative' means an association of producers.
       ``(5) National average price.--The term `national average 
     price' means the national average price paid to a producer 
     for fish in a marketing year as determined by the Secretary.
       ``(6) Secretary.--The term `Secretary' means the Secretary 
     of Commerce.
       ``(7) Trade adjustment assistance center.--The term `Trade 
     Adjustment Assistance Center' shall have the same meaning as 
     such term has in section 253.

     ``SEC. 299A. PETITIONS; GROUP ELIGIBILITY.

       ``(a) In General.--A petition for a certification of 
     eligibility to apply for adjustment assistance under this 
     chapter may be filed with the Secretary by a group of 
     producers or by their duly authorized representative. Upon 
     receipt of the petition, the Secretary shall promptly publish 
     notice in the Federal Register that the Secretary has 
     received the petition and initiated an investigation.
       ``(b) Hearings.--If the petitioner, or any other person 
     found by the Secretary to have a substantial interest in the 
     proceedings, submits not later than 10 days after the date of 
     the Secretary's publication under subsection (a) a request 
     for a hearing, the Secretary shall provide for a public 
     hearing and afford such interested person an opportunity to 
     be present, to produce evidence, and to be heard.
       ``(c) Group Eligibility Requirements.--The Secretary shall 
     certify a group of producers as eligible to apply for 
     adjustment assistance under this chapter if the Secretary 
     determines--
       ``(1) that the national average price for the fish, or a 
     class of fish, produced by the group for the most recent 
     marketing year for which the national average price is 
     available is less than 80 percent of the average of the 
     national average price for such fish, or such class of fish, 
     for the 5 marketing years preceding the most recent marketing 
     year; and
       ``(2) that increases in imports of articles like or 
     directly competitive with the fish, or class of fish, 
     produced by the group contributed importantly to the decline 
     in price described in paragraph (1).
       ``(d) Special Rule for Qualified Subsequent Years.--A group 
     of producers certified as eligible under section 299B shall 
     be eligible to apply for assistance under this chapter in any 
     qualified year after the year the group is first certified, 
     if the Secretary determines that--
       ``(1) the national average price for the fish, or class of 
     fish, produced by the group for the most recent marketing 
     year for which the national average price is available is 
     equal

[[Page S3664]]

     to or less than the price determined under subsection (c)(1); 
     and
       ``(2) the requirements of subsection (c)(2) are met.
       ``(e) Determination of Qualified Year and Commodity.--In 
     this chapter:
       ``(1) Qualified year.--The term `qualified year', with 
     respect to a group of producers certified as eligible under 
     section 299B, means each consecutive year after the year in 
     which the group is certified that the Secretary makes the 
     determination under subsection (c) or (d), as the case may 
     be.
       ``(2) Classes of goods within a commodity.--In any case in 
     which there are separate classes of fish, the Secretary shall 
     treat each class as a separate commodity in determining group 
     eligibility, the national average price, and level of imports 
     under this section and section 299E.

     ``SEC. 299B. DETERMINATIONS BY SECRETARY.

       ``(a) In General.--As soon as practicable after the date on 
     which a petition is filed under section 299A, but in any 
     event not later than 40 days after that date, the Secretary 
     shall determine whether the petitioning group meets the 
     requirements of section 299A (c) or (d), as the case may be, 
     and shall, if the group meets the requirements, issue a 
     certification of eligibility to apply for assistance under 
     this chapter covering producers in any group that meets the 
     requirements. Each certification shall specify the date on 
     which eligibility under this chapter begins.
       ``(b) Notice.--Upon making a determination on a petition, 
     the Secretary shall promptly publish a summary of the 
     determination in the Federal Register, together with the 
     Secretary's reasons for making the determination.
       ``(c) Termination of Certification.--Whenever the Secretary 
     determines, with respect to any certification of eligibility 
     under this chapter, that the decline in price for the fish 
     covered by the certification is no longer attributable to the 
     conditions described in section 299A, the Secretary shall 
     terminate such certification and promptly cause notice of 
     such termination to be published in the Federal Register, 
     together with the Secretary's reasons for making such 
     determination.

     ``SEC. 299C. STUDY BY SECRETARY WHEN INTERNATIONAL TRADE 
                   COMMISSION BEGINS INVESTIGATION.

       ``(a) In General.--Whenever the International Trade 
     Commission (in this chapter referred to as the `Commission') 
     begins an investigation under section 202 with respect to a 
     fish, the Commission shall immediately notify the Secretary 
     of the investigation. Upon receipt of the notification, the 
     Secretary shall immediately conduct a study of--
       ``(1) the number of producers producing a like or directly 
     competitive agricultural commodity who have been or are 
     likely to be certified as eligible for adjustment assistance 
     under this chapter, and
       ``(2) the extent to which the adjustment of such producers 
     to the import competition may be facilitated through the use 
     of existing programs.
       ``(b) Report.--Not later than 15 days after the day on 
     which the Commission makes its report under section 202(f), 
     the Secretary shall submit a report to the President setting 
     forth the findings of the study under subsection (a). Upon 
     making his report to the President, the Secretary shall also 
     promptly make the report public (with the exception of 
     information which the Secretary determines to be 
     confidential) and shall have a summary of it published in the 
     Federal Register.

     ``SEC. 299D. BENEFIT INFORMATION TO PRODUCERS.

       ``(a) In General.--The Secretary shall provide full 
     information to producers about the benefit allowances, 
     training, and other employment services available under this 
     title and about the petition and application procedures, and 
     the appropriate filing dates, for such allowances, training, 
     and services. The Secretary shall provide whatever assistance 
     is necessary to enable groups to prepare petitions or 
     applications for program benefits under this title.
       ``(b) Notice of Benefits.--
       ``(1) In general.--The Secretary shall mail written notice 
     of the benefits available under this chapter to each producer 
     that the Secretary has reason to believe is covered by a 
     certification made under this chapter.
       ``(2) Other notice.--The Secretary shall publish notice of 
     the benefits available under this chapter to producers that 
     are covered by each certification made under this chapter in 
     newspapers of general circulation in the areas in which such 
     producers reside.

     ``SEC. 299E. QUALIFYING REQUIREMENTS FOR PRODUCERS.

       ``(a) In General.--Payment of a trade adjustment allowance 
     shall be made to an adversely affected producer covered by a 
     certification under this chapter who files an application for 
     such allowance within 90 days after the date on which the 
     Secretary makes a determination and issues a certification of 
     eligibility under section 299B, if the following conditions 
     are met:
       ``(1) The producer submits to the Secretary sufficient 
     information to establish the amount of fish covered by the 
     application filed under subsection (a) that was produced by 
     the producer in the most recent year.
       ``(2) The producer certifies that the producer has not 
     received cash benefits under any provision of this title 
     other than this chapter.
       ``(3) The producer's net fishing or processing income (as 
     determined by the Secretary) for the most recent year is less 
     than the producer's net fishing or processing income for the 
     latest year in which no adjustment assistance was received by 
     the producer under this chapter.
       ``(4) The producer certifies that--
       ``(A) the producer has met with an employee or agent from a 
     Trade Adjustment Assistance Center to obtain, at no cost to 
     the producer, information and technical assistance that will 
     assist the producer in adjusting to import competition with 
     respect to the adversely affected fish, including--
       ``(i) information regarding the feasibility and 
     desirability of substituting 1 or more alternative fish for 
     the adversely affected fish; and
       ``(ii) technical assistance that will improve the 
     competitiveness of the production and marketing of the 
     adversely affected fish by the producer, including yield and 
     marketing improvements; and
       ``(B) none of the benefits will be used to purchase, lease, 
     or finance any new fishing vessel, add capacity to any 
     fishery, or otherwise add to the overcapitalization of any 
     fishery.
       ``(b) Amount of Cash Benefits.--
       ``(1) In general.--Subject to the provisions of section 
     299G, an adversely affected producer described in subsection 
     (a) shall be entitled to adjustment assistance under this 
     chapter in an amount equal to the product of--
       ``(A) one-half of the difference between--
       ``(i) an amount equal to 80 percent of the average of the 
     national average price of the fish covered by the application 
     described in subsection (a) for the 5 marketing years 
     preceding the most recent marketing year; and
       ``(ii) the national average price of the fish for the most 
     recent marketing year; and
       ``(B) the amount of the fish produced by the producer in 
     the most recent marketing year.
       ``(2) Special rule for subsequent qualified years.--The 
     amount of cash benefits for a qualified year shall be 
     determined in the same manner as cash benefits are determined 
     under paragraph (1) except that the average national price of 
     the fish shall be determined under paragraph (1)(A)(i) by 
     using the 5-marketing-year period used to determine the 
     amount of cash benefits for the first certification. A 
     producer shall only be eligible for benefits for subsequent 
     qualified years if the Secretary or his designee determines 
     that sufficient progress has been made implementing the plans 
     developed under section 299E(a)(4) of this title.
       ``(c) Maximum Amount of Cash Assistance.--The maximum 
     amount of cash benefits a producer may receive in any 12-
     month period shall not exceed $10,000.
       ``(d) Limitations on Other Assistance.--A producer entitled 
     to receive a cash benefit under this chapter--
       ``(1) shall not be eligible for any other cash benefit 
     under this title, and
       ``(2) shall be entitled to employment services and training 
     benefits under part III of subchapter C of chapter 2.

     ``SEC. 299F. FRAUD AND RECOVERY OF OVERPAYMENTS.

       ``(a) In General.--
       ``(1) Repayment.--If the Secretary, or a court of competent 
     jurisdiction, determines that any person has received any 
     payment under this chapter to which the person was not 
     entitled, such person shall be liable to repay such amount to 
     the Secretary, except that the Secretary may waive such 
     repayment if the Secretary determines, in accordance with 
     guidelines prescribed by the Secretary, that--
       ``(A) the payment was made without fault on the part of 
     such person; and
       ``(B) requiring such repayment would be contrary to equity 
     and good conscience.
       ``(2) Recovery of overpayment.--Unless an overpayment is 
     otherwise recovered, or waived under paragraph (1), the 
     Secretary shall recover the overpayment by deductions from 
     any sums payable to such person under this chapter.
       ``(b) False Statement.--A person shall, in addition to any 
     other penalty provided by law, be ineligible for any further 
     payments under this chapter--
       ``(1) if the Secretary, or a court of competent 
     jurisdiction, determines that the person--
       ``(A) knowingly has made, or caused another to make, a 
     false statement or representation of a material fact; or
       ``(B) knowingly has failed, or caused another to fail, to 
     disclose a material fact; and
       ``(2) as a result of such false statement or 
     representation, or of such nondisclosure, such person has 
     received any payment under this chapter to which the person 
     was not entitled.
       ``(c) Notice and Determination.--Except for overpayments 
     determined by a court of competent jurisdiction, no repayment 
     may be required, and no deduction may be made, under this 
     section until a determination under subsection (a)(1) by the 
     Secretary has been made, notice of the determination and an 
     opportunity for a fair hearing thereon has been given to the 
     person concerned, and the determination has become final.
       ``(d) Payment to Treasury.--Any amount recovered under this 
     section shall be returned to the Treasury of the United 
     States.
       ``(e) Penalties.--Whoever makes a false statement of a 
     material fact knowing it to be false, or knowingly fails to 
     disclose a material fact, for the purpose of obtaining or 
     increasing for himself or for any other person

[[Page S3665]]

     any payment authorized to be furnished under this chapter 
     shall be fined not more than $10,000 or imprisoned for not 
     more than 1 year, or both.

     ``SEC. 299G. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     and there are appropriated to the Department of Commerce not 
     to exceed $10,000,000 for each of the fiscal years 2002 
     through 2007 to carry out the purposes of this chapter.
       ``(b) Proportionate Reduction.--If in any year, the amount 
     appropriated under this chapter is insufficient to meet the 
     requirements for adjustment assistance payable under this 
     chapter, the amount of assistance payable under this chapter 
     shall be reduced proportionately.''.
       (b) Effective Date.--The amendments made by this title 
     shall take effect on the date that is 180 days after the date 
     of enactment of this Act.

 TITLE VI--HEALTH CARE COVERAGE OPTIONS FOR WORKERS ELIGIBLE FOR TRADE 
                         ADJUSTMENT ASSISTANCE

     SEC. 601. TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE 
                   CREDIT.

       (a) In General.--Subchapter B of chapter 65 of the Internal 
     Revenue Code of 1986 (relating to abatements, credits, and 
     refunds) is amended by inserting after section 6428 the 
     following new section:

     ``SEC. 6429. TRADE ADJUSTMENT ASSISTANCE HEALTH INSURANCE 
                   CREDIT.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by 
     subtitle A an amount equal to 73 percent of the amount paid 
     during the taxable year for coverage for the taxpayer, the 
     taxpayer's spouse, and dependents of the taxpayer under 
     qualified health insurance during eligible coverage months.
       ``(b) Eligible Coverage Month.--For purposes of this 
     section--
       ``(1) In general.--The term `eligible coverage month' means 
     any month if, as of the first day of such month--
       ``(A) the taxpayer is an eligible individual,
       ``(B) the taxpayer is covered by qualified health 
     insurance,
       ``(C) the premium for coverage under such insurance for 
     such month is paid by the taxpayer, and
       ``(D) in the case of a taxpayer who is an eligible 
     individual described in subsection (c)(1), the taxpayer does 
     not have other specified coverage.
       ``(2) Special rules.--
       ``(A) Joint returns.--In the case of a joint return, the 
     requirements of paragraph (1) shall be treated as met if at 
     least 1 spouse satisfies such requirements.
       ``(B) Exclusion of months in which individual is 
     imprisoned.--Such term shall not include any month with 
     respect to an individual if, as of the first day of such 
     month, such individual is imprisoned under Federal, State, or 
     local authority.
       ``(3) Other specified coverage.--For purposes of this 
     subsection, an eligible individual described in subsection 
     (c)(1) has other specified coverage for any month if, as of 
     the first day of such month--
       ``(A) Subsidized coverage.--
       ``(i) In general.--Such individual is covered under any 
     qualified health insurance under which at least 50 percent of 
     the cost of coverage (determined under section 4980B) is paid 
     or incurred by an employer (or former employer) of the 
     taxpayer or the taxpayer's spouse.
       ``(ii) Treatment of cafeteria plans and flexible spending 
     accounts.--For purposes of clause (i), the cost of benefits--

       ``(I) which are chosen under a cafeteria plan (as defined 
     in section 125(d)), or provided under a flexible spending or 
     similar arrangement, of such an employer, and
       ``(II) which are not includible in gross income under 
     section 106,

     shall be treated as borne by such employer.
       ``(B) Coverage under medicare, medicaid, or schip.--Such 
     individual--
       ``(i) is entitled to benefits under part A of title XVIII 
     of the Social Security Act or is enrolled under part B of 
     such title, or
       ``(ii) is enrolled in the program under title XIX or XXI of 
     such Act (other than under section 1928).
       ``(C) Certain other coverage.--Such individual--
       ``(i) is enrolled in a health benefits plan under chapter 
     89 of title 5, United States Code,
       ``(ii) is entitled to receive benefits under chapter 55 of 
     title 10, United States Code,
       ``(iii) is entitled to receive benefits under chapter 17 of 
     title 38, United States Code, or
       ``(iv) is eligible for benefits under the Indian Health 
     Care Improvement Act.
       ``(4) Special rule.--For purposes of this subsection, an 
     individual does not have other specified coverage for any 
     month if such coverage is under a qualified long-term care 
     insurance contract (as defined in section 7702B(b)(1)).
       ``(c) Eligible Individual.--
       ``(1) In general.--For purposes of this section, the term 
     `eligible individual' means an individual who is qualified to 
     receive payment of a trade adjustment allowance under section 
     235 of the Trade Act of 1974, as amended by section 111 of 
     the Trade Adjustment Assistance Reform Act of 2002.
       ``(2) Steelworker retirees.--Such term includes an 
     individual not described in paragraph (1) who would have been 
     eligible to be certified as an eligible retiree or eligible 
     beneficiary for purposes of participating in the Steel 
     Industry Retiree Benefits Protection program under the Trade 
     Act of 1974, as amended by S.2189, as introduced on April 17, 
     2002.
       ``(d) Qualified Health Insurance.--For purposes of this 
     section, the term `qualified health insurance' means health 
     insurance coverage described under section 173(f) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2918(f)).
       ``(e) Coordination With Advance Payments of Credit.--
       ``(1) Recapture of excess advance payments.--If any payment 
     is made by the Secretary under section 7527 during any 
     calendar year to a provider of qualified health insurance for 
     an individual, then the tax imposed by this chapter for the 
     individual's last taxable year beginning in such calendar 
     year shall be increased by the aggregate amount of such 
     payments.
       ``(2) Reconciliation of payments advanced and credit 
     allowed.--Any increase in tax under paragraph (1) shall not 
     be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit (other than the credit 
     allowed by subsection (a)) allowable under part IV of 
     subchapter A of chapter 1.
       ``(f) Special Rules.--
       ``(1) Coordination with other deductions.--Amounts taken 
     into account under subsection (a) shall not be taken into 
     account in determining any deduction allowed under section 
     162(l) or 213.
       ``(2) MSA distributions.--Amounts distributed from an 
     Archer MSA (as defined in section 220(d)) shall not be taken 
     into account under subsection (a).
       ``(3) Denial of credit to dependents.--No credit shall be 
     allowed under this section to any individual with respect to 
     whom a deduction under section 151 is allowable to another 
     taxpayer for a taxable year beginning in the calendar year in 
     which such individual's taxable year begins.
       ``(4) Credit treated as refundable credit.--For purposes of 
     this title, the credit allowed under this section shall be 
     treated as a credit allowable under subpart C of part IV of 
     subchapter A of chapter 1.
       ``(5) Expenses must be substantiated.--A payment for 
     qualified health insurance to which subsection (a) applies 
     may be taken into account under this section only if the 
     taxpayer substantiates such payment in such form as the 
     Secretary may prescribe.
       ``(6) Regulations.--The Secretary may prescribe such 
     regulations and other guidance as may be necessary or 
     appropriate to carry out this section and section 7527.''.
       (b) Information Reporting.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 (relating to 
     information concerning transactions with other persons) is 
     amended by inserting after section 6050S the following new 
     section:

     ``SEC. 6050T. RETURNS RELATING TO TRADE ADJUSTMENT ASSISTANCE 
                   HEALTH INSURANCE CREDIT.

       ``(a) Requirement of Reporting.--Every person--
       ``(1) who, in connection with a trade or business conducted 
     by such person, receives payments during any calendar year 
     from any individual for coverage of such individual or any 
     other individual under qualified health insurance (as defined 
     in section 6429(d)), and
       ``(2) who claims a reimbursement for an advance credit 
     amount,
     shall, at such time as the Secretary may prescribe, make the 
     return described in subsection (b) with respect to each 
     individual from whom such payments were received or for whom 
     such a reimbursement is claimed.
       ``(b) Form and Manner of Returns.--A return is described in 
     this subsection if such return--
       ``(1) is in such form as the Secretary may prescribe, and
       ``(2) contains--
       ``(A) the name, address, and TIN of each individual 
     referred to in subsection (a),
       ``(B) the aggregate of the advance credit amounts provided 
     to such individual and for which reimbursement is claimed,
       ``(C) the number of months for which such advance credit 
     amounts are so provided, and
       ``(D) such other information as the Secretary may 
     prescribe.
       ``(c) Statements To Be Furnished to Individuals With 
     Respect to Whom Information Is Required.--Every person 
     required to make a return under subsection (a) shall furnish 
     to each individual whose name is required to be set forth in 
     such return a written statement showing--
       ``(1) the name and address of the person required to make 
     such return and the phone number of the information contact 
     for such person, and
       ``(2) the information required to be shown on the return 
     with respect to such individual.
     The written statement required under the preceding sentence 
     shall be furnished on or before January 31 of the year 
     following the calendar year for which the return under 
     subsection (a) is required to be made.
       ``(d) Advance Credit Amount.--For purposes of this section, 
     the term `advance credit amount' means an amount for which 
     the person can claim a reimbursement pursuant to a program 
     established by the Secretary under section 7527.''.
       (2) Assessable penalties.--
       (A) Subparagraph (B) of section 6724(d)(1) of such Code 
     (relating to definitions) is amended by redesignating clauses 
     (xi) through (xvii) as clauses (xii) through (xviii), 
     respectively, and by inserting after clause (x) the following 
     new clause:

[[Page S3666]]

       ``(xi) section 6050T (relating to returns relating to trade 
     adjustment assistance health insurance credit),''.
       (B) Paragraph (2) of section 6724(d) of such Code is 
     amended by striking ``or'' at the end of subparagraph (Z), by 
     striking the period at the end of subparagraph (AA) and 
     inserting ``, or'', and by adding after subparagraph (AA) the 
     following new subparagraph:
       ``(BB) section 6050T (relating to returns relating to trade 
     adjustment assistance health insurance credit).''.
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 of such Code is 
     amended by inserting after the item relating to section 6050S 
     the following new item:

``Sec. 6050T. Returns relating to trade adjustment assistance health 
              insurance credit.''.
       (c) Criminal Penalty for Fraud.--
       (1) In general.--Subchapter B of chapter 75 of the Internal 
     Revenue Code of 1986 (relating to other offenses) is amended 
     by adding at the end the following:

     ``SEC. 7276. PENALTIES FOR OFFENSES RELATING TO TRADE 
                   ADJUSTMENT ASSISTANCE HEALTH INSURANCE CREDIT.

       ``Any person who knowingly misuses Department of the 
     Treasury names, symbols, titles, or initials to convey the 
     false impression of association with, or approval or 
     endorsement by, the Department of the Treasury of any 
     insurance products or group health coverage in connection 
     with the credit for trade adjustment assistance health 
     insurance under section 6429 shall on conviction thereof be 
     fined not more than $10,000, or imprisoned not more than 1 
     year, or both.''.
       (2) The table of sections for subchapter B of chapter 75 of 
     such Code is amended by adding at the end the following:

``Sec. 7276. Penalties for offenses relating to trade adjustment 
              assistance health insurance credit.''.
       (d) Conforming Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting before the period ``, or 
     from section 6429 of such Code''.
       (2) The table of sections for subchapter B of chapter 65 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new item:

``Sec. 6429. Trade adjustment assistance health insurance credit.''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2001, without regard to whether 
     final regulations to carry out such amendments have been 
     promulgated by such date.
       (2) Penalties.--The amendments made by subsection (c) shall 
     take effect on the date of the enactment of this Act.

     SEC. 602. ADVANCE PAYMENT OF TRADE ADJUSTMENT ASSISTANCE 
                   HEALTH INSURANCE CREDIT.

       (a) In General.--Chapter 77 of the Internal Revenue Code of 
     1986 (relating to miscellaneous provisions) is amended by 
     adding at the end the following new section:

     ``SEC. 7527. ADVANCE PAYMENT OF TRADE ADJUSTMENT ASSISTANCE 
                   HEALTH INSURANCE CREDIT.

       ``(a) General Rule.--The Secretary shall establish a 
     program for making payments on behalf of eligible individuals 
     (as defined in section 6429(c)) to providers of health 
     insurance for such individuals for whom a qualified health 
     insurance credit eligibility certificate is in effect.
       ``(b) Qualified Health Insurance Credit Eligibility 
     Certificate.--For purposes of this section, a qualified 
     health insurance credit eligibility certificate is a 
     statement certified by a designated local agency (as defined 
     in section 51(d)(11)) (or by any other entity designated by 
     the Secretary) which--
       ``(1) certifies that the individual was an eligible 
     individual (as defined in section 6429(c)) as of the first 
     day of any month, and
       ``(2) provides such other information as the Secretary may 
     require for purposes of this section.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new item:

``Sec. 7527. Advance payment of trade adjustment assistance health 
              insurance credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     without regard to whether final regulations to carry out such 
     amendments have been promulgated by such date.

     SEC. 603. HEALTH INSURANCE COVERAGE FOR ELIGIBLE INDIVIDUALS.

       (a) Eligibility for Grants.--Section 173(a) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2918(a)) is 
     amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3) by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(4) from funds appropriated under section 174(c)--
       ``(A) to a State to provide the assistance described in 
     subsection (f) to any eligible worker (as defined in 
     subsection (f)(5)(B)); and
       ``(B) to a State to provide the assistance described in 
     subsection (g) to any eligible worker (as defined in 
     subsection (g)(5)).''.
       (b) Use of Funds for Health Insurance Coverage.--Section 
     173 of the Workforce Investment Act of 1998 (29 U.S.C. 2918) 
     is amended by adding at the end the following:
       ``(f) Health Insurance Coverage Assistance for Eligible 
     Workers.--
       ``(1) In general.--Funds made available to a State under 
     paragraph (4)(A) of subsection (a) may be used by the State 
     for the following:
       ``(A) Health insurance coverage.--To assist an eligible 
     worker (as defined in paragraph (5)(B)) in enrolling in 
     health insurance coverage through--
       ``(i) COBRA continuation coverage;
       ``(ii) State-based continuation coverage provided by the 
     State under a State law that requires such coverage even 
     though the coverage would not otherwise be required under the 
     provisions of law referred to in paragraph (5)(A);
       ``(iii) the enrollment of the eligible worker and the 
     eligible worker's spouse and dependents in health insurance 
     coverage offered through a qualified State high risk pool or 
     other comparable State-based health insurance coverage 
     alternative;
       ``(iv) the enrollment of the eligible worker and the 
     eligible worker's spouse and dependents in the health 
     insurance program offered for State employees;
       ``(v) the enrollment of the eligible worker and the 
     eligible worker's spouse and dependents in a State-based 
     health insurance program that is comparable to the health 
     insurance program offered for State employees;
       ``(vi) a direct payment arrangement entered into by the 
     State and a group health plan (including a multiemployer plan 
     as defined in section 3(37) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1002(37))), an issuer of 
     health insurance coverage, an administrator, or an employer, 
     as appropriate, on behalf of the eligible worker and the 
     eligible worker's spouse and dependents;
       ``(vii) the enrollment of the eligible worker and the 
     eligible worker's spouse and dependents in a State-operated, 
     State-funded health plan;
       ``(viii) the enrollment of the eligible worker and the 
     eligible worker's spouse and dependents in health insurance 
     coverage offered through a State arrangement with a private 
     sector health care coverage purchasing pool; or
       ``(ix) in the case of an eligible worker who was enrolled 
     in individual health insurance coverage during the 6-month 
     period that ends on the date on which the worker became 
     unemployed, enrollment in such individual health insurance 
     coverage.
       ``(B) Establishment of health insurance coverage 
     mechanisms.--To establish or administer--
       ``(i) a qualified State high risk pool for the purpose of 
     providing health insurance coverage to an eligible worker and 
     the eligible worker's spouse and dependents;
       ``(ii) a State-based program for the purpose of providing 
     health insurance coverage to an eligible worker and the 
     eligible worker's spouse and dependents that is comparable to 
     the State health insurance program for State employees; or
       ``(iii) a program under which the State enters into 
     arrangements described in subparagraph (A)(vi).
       ``(C) Administrative expenses.--Subject to paragraph (3), 
     to pay the administrative expenses related to the enrollment 
     of eligible workers and the eligible workers spouses and 
     dependents in health insurance coverage described in 
     subparagraph (A), including--
       ``(i) eligibility verification activities;
       ``(ii) the notification of eligible workers of available 
     health insurance coverage options;
       ``(iii) processing qualified health insurance credit 
     eligibility certificates provided for under section 7527 of 
     the Internal Revenue Code of 1986;
       ``(iv) providing assistance to eligible workers in 
     enrolling in health insurance coverage;
       ``(v) the development or installation of necessary data 
     management systems; and
       ``(vi) any other expenses determined appropriate by the 
     Secretary.
       ``(D) Enrollment losses.--
       ``(i) In general.--Subject to paragraph (3), to reimburse 
     the State or an issuer of health insurance coverage for 
     losses, in connection with the enrollment of high cost 
     eligible workers, that are in excess of 100 percent of the 
     standard loss ratio (as defined in clause (iv)) for the 
     State-based programs described in clauses (iii), (iv), (v), 
     (vi), or (vii) of subparagraph (A) as a result of the 
     enrollment of eligible workers, and the eligible workers 
     spouses and dependents, in such programs.
       ``(ii) Determination.--Such losses shall be determined 
     based on the standard loss ratio applicable to the State in 
     the year immediately prior to year in which the enrollment of 
     eligible workers commences.
       ``(iii) Amount.--

       ``(I) In general.--With respect to a State-based program 
     described in clause (i) that experiences a loss that is in 
     excess of 150 percent of the standard loss ratio, the amount 
     of reimbursement that a State may receive under such clause 
     with respect to a year shall not exceed an amount equal to 90 
     percent of the amount that is in excess of such standard loss 
     ratio.
       ``(II) Reimbursement for certain states.--If a State 
     establishes, or provides for the enrollment of eligible 
     workers in health insurance coverage provided through, a 
     State-based program described in clause (i) during the 1-year 
     period that begins on the date of enactment of this 
     subsection, the amount of reimbursement that a State may

[[Page S3667]]

     receive under such clause with respect to a year shall not 
     exceed the greater of--

       ``(aa) in the case of a State-based program that 
     experiences a loss that is in excess of 120 percent, but less 
     than 150 percent, of the standard loss ratio, an amount equal 
     to 50 percent of the amount that is in excess of such 
     standard loss ratio; or
       ``(bb) the amount determined under subclause (I) if 
     applicable.
       ``(iv) Definition of standard loss ratio.--In this 
     subsection, the term `standard loss ratio', with respect to 
     the pool of insured individuals under coverage described in 
     clauses (ii) through (viii) of subparagraph (A) for a year, 
     means--

       ``(I) the amount of claims incurred by the program; divided 
     by
       ``(II) the premiums paid for enrollment in health insurance 
     coverage provided under such program.

       ``(2) Requirements relating to health insurance coverage.--
     With respect to health insurance coverage provided to 
     eligible workers under any of clauses (ii) through (viii) of 
     paragraph (1)(A), the State shall ensure that--
       ``(A) enrollment is guaranteed for workers who provide a 
     qualified health insurance credit eligibility certificate 
     described in section 7527 of the Internal Revenue Code of 
     1986 and who pay the remainder of the premium for such 
     enrollment;
       ``(B) no pre-existing condition limitations are imposed 
     with respect to such eligible workers;
       ``(C) the worker is not required (as a condition of 
     enrollment or continued enrollment under the coverage) to pay 
     a premium or contribution that is greater than the premium or 
     contribution for a similarly situated individual who is not 
     an eligible worker;
       ``(D) benefits under the coverage are the same as (or 
     substantially similar to) the benefits provided to similarly 
     situated individuals who are not eligible workers;
       ``(E) the standard loss ratio for the coverage is not less 
     than 65 percent;
       ``(F) in the case of coverage provided under paragraph 
     (1)(A)(v), the premiums and benefits are comparable to the 
     premiums and benefits applicable to State employees; and
       ``(G) such coverage otherwise meets requirements 
     established by the Secretary.
       ``(3) Limitation.--A State that fails, during the 2-year 
     period beginning on the date of enactment of this subsection, 
     to establish, or provide for the enrollment of eligible 
     workers in health insurance coverage provided through, a 
     State-based program described in any of clauses (iii) through 
     (vii) of paragraph (1)(A), shall not use amounts made 
     available under subsection (a)(4) for expenditures described 
     in subparagraphs (C) and (D) of paragraph (1).
       ``(4) Availability of funds.--
       ``(A) Expedited procedures.--With respect to applications 
     submitted by States for grants under this subsection, the 
     Secretary shall--
       ``(i) not later than 15 days after the date on which the 
     Secretary receives a completed application from a State, 
     notify the State of the determination of the Secretary with 
     respect to the approval or disapproval of such application;
       ``(ii) in the case of a State application that is 
     disapproved by the Secretary, provide technical assistance, 
     at the request of the State, in a timely manner to enable the 
     State to submit an approved application; and
       ``(iii) develop procedures to expedite the provision of 
     funds to States with approved applications.
       ``(B) Availability and distribution of funds.--Except as 
     provided for in paragraph (3), the Secretary shall ensure 
     that funds made available under section 174(c)(1) to carry 
     out subsection (a)(4) are available to States throughout the 
     period described in section 174(c)(2).
       ``(5) Definitions.--For purposes of this subsection:
       ``(A) Cobra continuation coverage.--The term `COBRA 
     continuation coverage' means coverage under a group health 
     plan provided by an employer pursuant to title XXII of the 
     Public Health Service Act, section 4980B of the Internal 
     Revenue Code of 1986, part 6 of subtitle B of title I of the 
     Employee Retirement Income Security Act of 1974, or section 
     8905a of title 5, United States Code.
       ``(B) Eligible worker.--
       ``(i) In general.--The term `eligible worker' means an 
     individual who--

       ``(I) is qualified to receive payment of a trade adjustment 
     allowance under section 235 of the Trade Act of 1974, as 
     amended by section 111 of the Trade Adjustment Assistance 
     Reform Act of 2002;
       ``(II) does not have other specified coverage; and
       ``(III) is not imprisoned under Federal, State, or local 
     authority.

       ``(ii) Steelworker retirees.--Such term includes an 
     individual not described in clause (i) who would have been 
     eligible to be certified as an eligible retiree or eligible 
     beneficiary for purposes of participating in the Steel 
     Industry Retiree Benefits Protection program under the Trade 
     Act of 1974, as amended by S.2189, as introduced on April 17, 
     2002.
       ``(C) Other specified coverage.--With respect to an 
     eligible worker described in subparagraph (B)(i), the term 
     `other specified coverage' means--
       ``(i) Subsidized coverage.--

       ``(I) In general.--Such individual is covered under any 
     health insurance coverage under which at least 50 percent of 
     the cost of coverage (determined under section 4980B of the 
     Internal Revenue Code of 1986) is paid or incurred by an 
     employer (or former employer) of the individual or the 
     individual's spouse.
       ``(II) Treatment of cafeteria plans and flexible spending 
     accounts.--For purposes of subclause (I), the cost of 
     benefits which are chosen under a cafeteria plan (as defined 
     in section 125(d) of such Code), or provided under a flexible 
     spending or similar arrangement, of such an employer, and 
     which are not includible in gross income under section 106 of 
     such Code, shall be treated as borne by such employer.

       ``(ii) Coverage under medicare, medicaid, or schip.--Such 
     individual--

       ``(I) is entitled to benefits under part A of title XVIII 
     of the Social Security Act or is enrolled under part B of 
     such title, or
       ``(II) is enrolled in the program under title XIX or XXI of 
     such Act (other than under section 1928).

       ``(iii) Certain other coverage.--Such individual--

       ``(I) is enrolled in a health benefits plan under chapter 
     89 of title 5, United States Code;
       ``(II) is entitled to receive benefits under chapter 55 of 
     title 10, United States Code;
       ``(III) is entitled to receive benefits under chapter 17 of 
     title 38, United States Code; or
       ``(IV) is eligible for benefits under the Indian Health 
     Care Improvement Act.

     Such term does not include coverage under a qualified long-
     term care insurance contract (as defined in section 
     7702B(b)(1) of the Internal Revenue Code of 1986).
       ``(D) Group health plan.--The term `group health plan' has 
     the meaning given that term in section 2791(a) of the Public 
     Health Service Act (42 U.S.C. 300gg-91(a)), section 607(1) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1167(1)), and section 4980B(g)(2) of the Internal 
     Revenue Code of 1986.
       ``(E) Health insurance coverage.--The term `health 
     insurance coverage' has the meaning given that term in 
     section 2791(b)(1) of the Public Health Service Act (42 
     U.S.C. 300gg-91(b)(1)) (other than insurance if substantially 
     all of its coverage is of excepted benefits described in 
     section 2791(c) of such Act (42 U.S.C. 300gg-91(c)) .
       ``(F) Individual health insurance coverage.--The term 
     `individual health insurance coverage' means health insurance 
     coverage offered to individuals other than in connection with 
     a group health plan. Such term does not include Federal- or 
     State-based health insurance coverage.
       ``(G) Qualified state high risk pool.--The term `qualified 
     State high risk pool' has the meaning given that term in 
     section 2744(c)(2) of the Public Health Service Act.
       ``(g) Interim Health and Other Assistance.--
       ``(1) In general.--Funds made available to a State under 
     paragraph (4)(B) of subsection (a) may be used by the State 
     to provide assistance and support services to eligible 
     workers, including health care coverage, transportation, 
     child care, dependent care, and income assistance.
       ``(2) Income support.--With respect to any income 
     assistance provided to an eligible worker with such funds, 
     such assistance shall supplement and not supplant other 
     income support or assistance provided under chapter 2 of 
     title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) 
     (as in effect on the day before the effective date of the 
     Trade Adjustment Assistance Reform Act of 2002) or the 
     unemployment compensation laws of the State where the 
     eligible worker resides.
       ``(3) Health care coverage.--With respect to any health 
     care coverage assistance provided to an eligible worker with 
     such funds, the following rules shall apply:
       ``(A) The State may provide assistance in obtaining health 
     care coverage to the eligible worker and to the eligible 
     worker's spouse and dependents.
       ``(B) Such assistance may include any or a combination of 
     the following:
       ``(i) Direct payment arrangements with a group health plan 
     (including a multiemployer plan), an issuer of health 
     insurance coverage, an administrator, or an employer, as 
     appropriate, on behalf of the eligible worker and the 
     eligible worker's spouse and dependents.
       ``(ii) The enrollment of the eligible worker and the 
     eligible worker's spouse and dependents in the health 
     insurance program offered for State employees.
       ``(iii) Subject to section 603(e) of the Trade Adjustment 
     Assistance Reform Act of 2002, the enrollment of the eligible 
     worker and the eligible worker's spouse and dependents under 
     the State medicaid program under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.) or under the State 
     children's health insurance program under title XXI of that 
     Act (42 U.S.C. 1397aa et seq.).
       ``(C) Such assistance shall supplement and may not supplant 
     any other State or local funds used to provide health care 
     coverage and may not be included in determining the amount of 
     non-Federal contributions required under any program.
       ``(4) Expedited procedures.--With respect to applications 
     submitted by States for grants under this subsection, the 
     Secretary shall--
       ``(A) not later than 15 days after the date on which the 
     Secretary receives a completed application from a State, 
     notify the State of the determination of the Secretary with 
     respect to the approval or disapproval of such application;

[[Page S3668]]

       ``(B) in the case of a State application that is 
     disapproved by the Secretary, provide technical assistance, 
     at the request of the State, in a timely manner to enable the 
     State to submit an approved application; and
       ``(C) develop procedures to expedite the provision of funds 
     to States with approved applications.
       ``(5) Definitions.--In this subsection:
       ``(A) Eligible worker.--
       ``(i) In general.--The term `eligible worker' means an 
     individual who is a member of a group of workers certified 
     after April 1, 2002 under chapter 2 of title II of the Trade 
     Act of 1974 (as in effect on the day before the effective 
     date of the Trade Adjustment Assistance Reform Act of 2002) 
     and who is determined to be qualified to receive payment of a 
     trade adjustment allowance under such chapter (as so in 
     effect).
       ``(ii) Steelworker retirees.--Such term includes an 
     individual not described in clause (i) who would have been 
     eligible to be certified as an eligible retiree or eligible 
     beneficiary for purposes of participating in the Steel 
     Industry Retiree Benefits Protection program under the Trade 
     Act of 1974, as amended by S.2189, as introduced on April 17, 
     2002.
       ``(B) Other terms.--The terms `administrator', `group 
     health plan', `health insurance coverage', and `multiemployer 
     plan' have the meanings given those terms in subsection 
     (f)(5).''.
       (c) Authorization of Appropriations.--Section 174 of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2919) is amended 
     by adding at the end the following:
       ``(c) Assistance for Eligible Workers.--
       ``(1) In general.--There are authorized to be 
     appropriated--
       ``(A) to carry out subsection (a)(4)(A) of section 173--
       ``(i) $10,000,000 for fiscal year 2002; and
       ``(ii) $60,000,000 for each of fiscal years 2003 through 
     2007; and
       ``(B) to carry out subsection (a)(4)(B) of section 173--
       ``(i) $50,000,000 for fiscal year 2002;
       ``(ii) $100,000,000 for fiscal year 2003; and
       ``(iii) $50,000,000 for fiscal year 2004.
       ``(2) Availability of funds.--Funds appropriated under--
       ``(A) paragraph (1)(A) for each fiscal year shall, 
     notwithstanding section 189(g), remain available for 
     obligation during the pendency of any outstanding claim under 
     the Trade Act of 1974, as amended by the Trade Adjustment 
     Assistance Reform Act of 2002; and
       ``(B) paragraph (1)(B), for each fiscal year shall, 
     notwithstanding section 189(g), remain available during the 
     period that begins on the date of enactment of the Trade 
     Adjustment Assistance Reform Act of 2002 and ends on 
     September 30, 2004.''.
       (d) Conforming Amendment.--Section 132(a)(2)(A) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2862(a)(2)(A)) is 
     amended by inserting ``, other than under subsection (a)(4), 
     (f), and (g)'' after ``grants''.
       (e) Authority and Special Rules For Health Care Coverage 
     Assistance Provided To Eligible Workers Under Medicaid or 
     SCHIP.--
       (1) In general.--Notwithstanding any other provision of 
     law, in the case of an eligible worker described in section 
     173(g)(5)(A) of the Workforce Investment Act of 1998 (as 
     added by subsection (b)) a State may elect, subject to 
     paragraph (2), to provide such worker and the worker's spouse 
     and dependents assistance with health care coverage under the 
     State medicaid program under title XIX of the Social Security 
     Act (42 U.S.C. 1396 et seq.) or under the State children's 
     health insurance program under title XXI of such Act (42 
     U.S.C. 1397aa et seq.) (whether such program is implemented 
     under that title or title XIX of such Act).
       (2) Special rules.--In the case of assistance provided 
     under an election made under this subsection--
       (A) such assistance shall be provided with funds made 
     available to the State under section 173(a)(4)(B) of the 
     Workforce Investment Act of 1998 (as added by subsection (a)) 
     and without regard to any State share requirement that would 
     otherwise apply;
       (B) at a minimum, such assistance shall meet the 
     requirements of section 2103 of the Social Security Act (42 
     U.S.C. 1397cc); and
       (C) with respect to such assistance provided under the 
     State medicaid program, shall be provided without regard to 
     requirements relating to statewideness of coverage, or 
     income, assets, or resources eligibility limitations that 
     would otherwise apply under title XIX of the Social Security 
     Act (42 U.S.C. 1396 et seq.).
       (f) Temporary Extension of COBRA Election Period for 
     Certain Individuals.--
       (1) In general.--Notwithstanding any other provision of 
     law, the election period for COBRA continuation coverage (as 
     defined in section 6429(d)(2) of the Internal Revenue Code of 
     1986) with respect to any eligible individual (as defined in 
     section 6429(c) of such Code) for whom such period has 
     expired as of the date of the enactment of this Act, shall 
     not end before the date that is 60 days after the date the 
     individual becomes such an eligible individual.
       (2) Preexisting conditions.--If an individual becomes such 
     an eligible individual, any period before the date of such 
     eligibility shall be disregarded for purposes of determining 
     the 63-day periods referred to in section 701(c)(2) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1181(c)(2)), section 2701(c)(2) of the Public Health Service 
     Act (42 U.S.C. 300gg(c)(2)), and section 9801(c)(2) of the 
     Internal Revenue Code of 1986.

          TITLE VII--CONFORMING AMENDMENTS AND EFFECTIVE DATE

     SEC. 701. CONFORMING AMENDMENTS.

       (a) Amendments to the Trade Act of 1974.--
       (1) Assistance to industries.--Section 265 of the Trade Act 
     of 1974 (19 U.S.C. 2355) is amended by striking ``certified 
     as eligible to apply for adjustment assistance under sections 
     231 or 251'', and inserting ``certified as eligible for trade 
     adjustment assistance benefits under section 231, or as 
     eligible to apply for adjustment assistance under section 
     251''.
       (2) General accounting office report.--Section 280 of the 
     Trade Act of 1974 (19 U.S.C. 2391) is amended to read as 
     follows:

     ``SEC. 280. GENERAL ACCOUNTING OFFICE REPORT.

       ``(a) Study and Report.--The Comptroller General of the 
     United States shall conduct a study of the adjustment 
     assistance programs established under chapters 2, 3, 4, 6, 
     and 7 of this title and shall report the results of such 
     study to the Congress no later than January 31, 2005. Such 
     report shall include an evaluation of--
       ``(1) the effectiveness of such programs in aiding workers, 
     farmers, fishermen, firms, and communities to adjust to 
     changed economic conditions resulting from changes in the 
     patterns of international trade; and
       ``(2) the coordination of the administration of such 
     programs and other Government programs which provide 
     unemployment compensation and relief to depressed areas.
       ``(b) Assistance of Other Departments and Agencies.--In 
     carrying out his responsibilities under this section, the 
     Comptroller General shall, to the extent practical, avail 
     himself of the assistance of the Departments of Labor, 
     Commerce, and Agriculture and the Small Business 
     Administration. The Secretaries of Labor, Commerce, and 
     Agriculture and the Administrator of the Small Business 
     Administration shall make available to the Comptroller 
     General any assistance necessary for an effective evaluation 
     of the adjustment assistance programs established under this 
     title.''.
       (3) Coordination.--Section 281 of the Trade Act of 1974 (19 
     U.S.C. 2392) is amended by striking ``Departments of Labor 
     and Commerce'' and inserting ``Departments of Labor, 
     Commerce, and Agriculture''.
       (4) Trade monitoring system.--Section 282 of the Trade Act 
     of 1974 (19 U.S.C. 2393) is amended by striking ``The 
     Secretary of Commerce and the Secretary of Labor'' and 
     inserting ``The Secretaries of Commerce, Labor, and 
     Agriculture''.
       (5) Judicial review.--
       (A) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 
     2395(a)) is amended by striking ``under section 223 or 
     section 250(c)'' and all that follows through ``the Secretary 
     of Commerce under section 271'' and inserting ``under section 
     231, a firm or its representative, or any other interested 
     domestic party aggrieved by a final determination of the 
     Secretary of Commerce under section 251, an agricultural 
     commodity producer (as defined in section 291(2)) aggrieved 
     by a determination of the Secretary of Agriculture under 
     section 293, or a producer (as defined in section 299(2)) 
     aggrieved by a determination of the Secretary of Commerce 
     under section 299B''.
       (B) Section 284 of such Trade Act of 1974 is amended in the 
     second sentence of subsection (a) and in subsections (b) and 
     (c), by inserting ``or the Secretary of Agriculture'' after 
     ``Secretary of Commerce'' each place it appears.
       (6) Termination.--Section 285 of the Trade Act of 1974 is 
     amended to read as follows:

     ``SEC. 285. TERMINATION.

       ``(a) Assistance for Workers.--
       ``(1) In general.--Except as provided in paragraph (2), 
     trade adjustment assistance, vouchers, allowances, and other 
     payments or benefits may not be provided under chapter 2 
     after September 30, 2007.
       ``(2) Exception.--Notwithstanding paragraph (1), a worker 
     shall continue to receive trade adjustment assistance 
     benefits and other benefits under chapter 2 for any week for 
     which the worker meets the eligibility requirements of that 
     chapter, if on or before September 30, 2007, the worker is--
       ``(A) certified as eligible for trade adjustment assistance 
     benefits under section 231; and
       ``(B) otherwise eligible to receive trade adjustment 
     assistance benefits under chapter 2.
       ``(b) Other Assistance.--
       ``(1) Assistance for firms.--Technical assistance may not 
     be provided under chapter 3 after September 30, 2007.
       ``(2) Assistance for communities.--Technical assistance and 
     other payments may not be provided under chapter 4 after 
     September 30, 2007.
       ``(3) Assistance for farmers and fishermen.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     adjustment assistance, vouchers, allowances, and other 
     payments or benefits may not be provided under chapter 6 or 7 
     after September 30, 2007.
       ``(B) Exception.--Notwithstanding subparagraph (A), an 
     agricultural commodity producer (as defined in section 
     291(2)) or producer (as defined in section 299(2)), shall 
     continue to receive adjustment assistance benefits and other 
     benefits under chapter 6 or 7, whichever applies, for any 
     week for which the agricultural commodity producer or 
     producer meets the eligibility requirements of

[[Page S3669]]

     chapter 6 or 7, whichever applies, if on or before September 
     30, 2007, the agricultural commodity producer or producer 
     is--
       ``(i) certified as eligible for adjustment assistance 
     benefits under chapter 6 or 7, whichever applies; and
       ``(ii) is otherwise eligible to receive adjustment 
     assistance benefits under such chapter 6 or 7.''.
       (6) Table of contents.--
       (A) In general.--The table of contents for chapters 2, 3, 
     and 4 of title II of the Trade Act of 1974 is amended to read 
     as follows:

             ``Chapter 2--Adjustment Assistance for Workers


                   ``SUBCHAPTER A--GENERAL PROVISIONS

``Sec. 221. Definitions.
``Sec. 222. Agreements with States.
``Sec. 223. Administration absent State agreement.
``Sec. 224. Data collection; evaluations; reports.
``Sec. 225. Study by Secretary of Labor when International Trade 
              Commission begins investigation.
``Sec. 226. Report by Secretary of Labor on likely impact of trade 
              agreements.


                     ``SUBCHAPTER B--CERTIFICATIONS

``Sec. 231. Certification as adversely affected workers.
``Sec. 232. Benefit information to workers.


                    ``SUBCHAPTER C--PROGRAM BENEFITS

                      ``Part I--General Provisions

``Sec. 234. Comprehensive assistance.

                 ``Part II--Trade Adjustment Allowances

``Sec. 235. Qualifying requirements for workers.
``Sec. 236. Weekly amounts.
``Sec. 237. Limitations on trade adjustment allowances.
``Sec. 238. Application of State laws.

    ``Part III--Employment Services, Training, and Other Allowances

``Sec. 239. Employment services.
``Sec. 240. Training.
``Sec. 241. Job search allowances.
``Sec. 242. Relocation allowances.
``Sec. 243. Supportive services; wage insurance.


           ``SUBCHAPTER D--PAYMENT AND ENFORCEMENT PROVISIONS

``Sec. 244. Payments to States.
``Sec. 245. Liabilities of certifying and disbursing officers.
``Sec. 246. Fraud and recovery of overpayments.
``Sec. 247. Criminal penalties.
``Sec. 248. Authorization of appropriations.
``Sec. 249. Regulations.
``Sec. 250. Subpoena power.

           ``Chapter 3--Trade Adjustment Assistance for Firms

``Sec. 251. Petitions and determinations.
``Sec. 252. Approval of adjustment proposals.
``Sec. 253. Technical assistance.
``Sec. 254. Financial assistance.
``Sec. 255. Conditions for financial assistance.
``Sec. 256. Delegation of functions to Small Business Administration; 
              authorization of appropriations.
``Sec. 257. Administration of financial assistance.
``Sec. 258. Protective provisions.
``Sec. 259. Penalties.
``Sec. 260. Suits.
``Sec. 261. Definition of firm.
``Sec. 262. Regulations.
``Sec. 264. Study by Secretary of Commerce when International Trade 
              Commission begins investigation; action where there is 
              affirmative finding.
``Sec. 265. Assistance to industries.

               ``Chapter 4--Community Economic Adjustment

``Sec. 271. Definitions.
``Sec. 272. Office of Community Trade Adjustment.
``Sec. 273. Notification and certification as an eligible community.
``Sec. 274. Community Economic Development Coordinating Committee.
``Sec. 275. Community economic adjustment advisors.
``Sec. 276. Strategic plans.
``Sec. 277. Grants for economic development.
``Sec. 278. Authorization of appropriations.
``Sec. 279. General provisions.''.
       (B) Chapters 6 and 7.--The table of contents for title II 
     of the Trade Act of 1974, as amended by subparagraph (A), is 
     amended by inserting after the items relating to chapter 5 
     the following:

             ``Chapter 6--Adjustment Assistance for Farmers

``Sec. 291. Definitions.
``Sec. 292. Petitions; group eligibility.
``Sec. 293. Determinations by Secretary of Agriculture.
``Sec. 294. Study by Secretary of Agriculture when International Trade 
              Commission begins investigation.
``Sec. 295. Benefit information to agricultural commodity producers.
``Sec. 296. Qualifying requirements for agricultural commodity 
              producers.
``Sec. 297. Fraud and recovery of overpayments.
``Sec. 298. Authorization of appropriations.

            ``Chapter 7--Adjustment Assistance for Fishermen

``Sec. 299. Definitions.
``Sec. 299A. Petitions; group eligibility.
``Sec. 299B. Determinations by Secretary.
``Sec. 299C. Study by Secretary when International Trade Commission 
              begins investigation.
``Sec. 299D. Benefit information to producers.
``Sec. 299E. Qualifying requirements for producers.
``Sec. 299F. Fraud and recovery of overpayments.
``Sec. 299G. Authorization of appropriations.''.
       (b) Internal Revenue Code.--
       (1) Adjusted gross income.--Section 62(a)(12) of the 
     Internal Revenue Code of 1986 (relating to the definition of 
     adjusted gross income) is amended by striking ``trade 
     readjustment allowances under section 231 or 232'' and 
     inserting ``trade adjustment allowances under section 235 or 
     236''.
       (2) Federal unemployment.--
       (A) In general.--Section 3304(a)(8) of the Internal Revenue 
     Code of 1986 (relating to the approval of State unemployment 
     insurance laws) is amended to read as follows:
       ``(8) compensation shall not be denied to an individual for 
     any week because the individual is in training with the 
     approval of the State agency, or in training approved by the 
     Secretary of Labor pursuant to chapter 2 of title II of the 
     Trade Act of 1974 (or because of the application, to any such 
     week in training, of State law provisions relating to 
     availability for work, active search for work, or refusal to 
     accept work);''.
       (B) Effective date.--
       (i) In general.--Except as provided in clause (ii), the 
     amendments made by this paragraph shall apply in the case of 
     compensation paid for weeks beginning on or after the date 
     that is 90 days after the date of enactment of this Act.
       (ii) Meeting of state legislature.--

       (I) In general.--If the Secretary of Labor identifies a 
     State as requiring a change to its statutes or regulations in 
     order to comply with the amendments made by subparagraph (A), 
     the amendments made by subparagraph (A) shall apply in the 
     case of compensation paid for weeks beginning after the 
     earlier of--

       (aa) the date the State changes its statutes or regulations 
     in order to comply with the amendments made by this section; 
     or
       (bb) the end of the first session of the State legislature 
     which begins after the date of enactment of this Act or which 
     began prior to such date and remained in session for at least 
     25 calendar days after such date;

     except that in no case shall the amendments made by this Act 
     apply before the date described in clause (i).
       (II) Session defined.--In this clause, the term ``session'' 
     means a regular, special, budget, or other session of a State 
     legislature.

       (c) Amendments to Title 28.--
       (1) Civil actions against the united states.--Section 
     1581(d) of title 28, United States Code, is amended--
       (A) in paragraph (1), by striking ``section 223'' and 
     inserting ``section 231'';
       (B) in paragraph (2), by striking ``and''; and
       (C) by striking paragraph (3), and inserting the following:
       ``(3) any final determination of the Secretary of 
     Agriculture under section 293 of the Trade Act of 1974 with 
     respect to the eligibility of an agricultural commodity 
     producer (as defined in section 291(2)) for adjustment 
     assistance under such Act; and
       ``(4) any final determination of the Secretary of Commerce 
     under section 299B of the Trade Act of 1974 with respect to 
     the eligibility of a producer (as defined in section 299(2)) 
     for adjustment assistance under such Act.''.
       (2) Persons entitled to commence a civil action.--Section 
     2631 of title 28, United States Code, is amended--
       (A) by amending subsection (d)(1) to read as follows:
       ``(d)(1) A civil action to review any final determination 
     of the Secretary of Labor under section 231 of the Trade Act 
     of 1974 with respect to the certification of workers as 
     adversely affected and eligible for trade adjustment 
     assistance under that Act may be commenced by a worker, a 
     group of workers, a certified or recognized union, or an 
     authorized representative of such worker or group, that 
     petitions for certification under that Act or is aggrieved by 
     the final determination.'';
       (B) by striking paragraph (3), and inserting the following:
       ``(3) A civil action to review any final determination of 
     the Secretary of Agriculture under section 293 of the Trade 
     Act of 1974 with respect to the eligibility of an 
     agricultural commodity producer for adjustment assistance may 
     be commenced in the Court of International Trade by an 
     agricultural commodity producer that applies for assistance 
     under such Act and is aggrieved by such final determination, 
     or by any other interested party that is aggrieved by such 
     final determination.''; and
       (C) by adding at the end the following new paragraph:
       ``(4) A civil action to review any final determination of 
     the Secretary of Commerce under section 299B of the Trade Act 
     of 1974 with respect to the eligibility of an producer (as 
     defined in section 299(2)) for adjustment assistance may be 
     commenced in the Court of International Trade by a producer 
     that applies for assistance under such Act and is aggrieved 
     by such final determination, or by any other interested party 
     that is aggrieved by such final determination.''.

[[Page S3670]]

       (3) Time for commencement of action.--Section 2636(d) of 
     title 28, United States Code, is amended by striking ``under 
     section 223 of the Trade Act of 1974 or a final determination 
     of the Secretary of Commerce under section 251 or section 271 
     of such Act'' and inserting ``under section 231 of the Trade 
     Act of 1974, a final determination of the Secretary of 
     Commerce under section 251 of that Act, a final determination 
     of the Secretary of Agriculture under section 293 of that 
     Act, or a final determination of the Secretary of Commerce 
     under section 299B of that Act''.
       (4) Scope and standard of review.--Section 2640(c) of title 
     28, United States Code, is amended by striking ``under 
     section 223 of the Trade Act of 1974 or any final 
     determination of the Secretary of Commerce under section 251 
     or section 271 of such Act'' and inserting ``under section 
     231 of the Trade Act of 1974, a final determination of the 
     Secretary of Commerce under section 251 of that Act, a final 
     determination of the Secretary of Agriculture under section 
     293 of that Act, or a final determination of the Secretary of 
     Commerce under section 299B of that Act''.
       (5) Relief.--Section 2643(c)(2) of title 28, United States 
     Code, is amended by striking ``under section 223 of the Trade 
     Act of 1974 or any final determination of the Secretary of 
     Commerce under section 251 or section 271 of such Act'' and 
     inserting ``under section 231 of the Trade Act of 1974, a 
     final determination of the Secretary of Commerce under 
     section 251 of that Act, a final determination of the 
     Secretary of Agriculture under section 293 of that Act, or a 
     final determination of the Secretary of Commerce under 
     section 299B of that Act''.
       (d) Amendment to the Food Stamp Act of 1977.--Section 
     6(o)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(o)(1)(B)) is amended by striking ``section 236'' and 
     inserting ``section 240''.

           TITLE VIII--SAVINGS PROVISIONS AND EFFECTIVE DATE

     SEC. 801. SAVINGS PROVISIONS.

       (a) Proceedings Not Affected.--
       (1) In general.--The provisions of this division shall not 
     affect any petition for certification for benefits under 
     chapter 2 of title II of the Trade Act of 1974 that was in 
     effect on September 30, 2001. Determinations shall be issued, 
     appeals shall be taken therefrom, and payments shall be made 
     under those determinations, as if this division had not been 
     enacted, and orders issued in any proceeding shall continue 
     in effect until modified, terminated, superseded, or revoked 
     by a duly authorized official, by a court of competent 
     jurisdiction, or by operation of law.
       (2) Modification or discontinuance.--Nothing in this 
     subsection shall be deemed to prohibit the discontinuance or 
     modification of any proceeding under the same terms and 
     conditions and to the same extent that the proceeding could 
     have been discontinued or modified if this division had not 
     been enacted.
       (b) Suits Not Affected.--The provisions of this division 
     shall not affect any suit commenced before October 1, 2001, 
     and in all those suits, proceedings shall be had, appeals 
     taken, and judgments rendered in the same manner and with the 
     same effect as if this division had not been enacted.
       (c) Nonabatement of Actions.--No suit, action, or other 
     proceeding commenced by or against the Federal Government, or 
     by or against any individual in the official capacity of that 
     individual as an officer of the Federal Government, shall 
     abate by reason of enactment of this Act.

     SEC. 802. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in sections 
     401(b), 501(b), and 701(b)(2)(B), titles IX, X, and XI, and 
     subsections (b), (c), and (d) of this section, the amendments 
     made by this division shall apply to--
       (1) petitions for certification filed under chapter 2 or 3 
     of title II of the Trade Act of 1974 on or after the date 
     that is 90 days after the date of enactment of this Act; and
       (2) certifications for assistance under chapter 4 of title 
     II of the Trade Act of 1974 issued on or after the date that 
     is 90 days after the date of enactment of this Act.
       (b) Workers Certified as Eligible Before Effective Date.--
     Notwithstanding subsection (a), a worker shall continue to 
     receive (or be eligible to receive) trade adjustment 
     assistance and other benefits under chapter 2 of title II of 
     the Trade Act of 1974, as in effect on September 30, 2001, 
     for any week for which the worker meets the eligibility 
     requirements of such chapter 2 as in effect on such date, if 
     on or before such date, the worker--
       (1) was certified as eligible for trade adjustment 
     assistance benefits under such chapter as in effect on such 
     date; and
       (2) would otherwise be eligible to receive trade adjustment 
     assistance benefits under such chapter as in effect on such 
     date.
       (c) Workers Who Became Eligible During Qualified Period.--
       (1) In general.--Notwithstanding subsection (a) or any 
     other provision of law, including section 285 of the Trade 
     Act of 1974, any worker who would have been eligible to 
     receive trade adjustment assistance or other benefits under 
     chapter 2 of title II of the Trade Act if 1974 during the 
     qualified period if such chapter 2 had been in effect during 
     such period, shall be eligible to receive trade adjustment 
     assistance and other benefits under chapter 2 of title II of 
     the Trade Act of 1974, as in effect on September 30, 2001, 
     for any week during the qualified period for which the worker 
     meets the eligibility requirements of such chapter 2 as in 
     effect on September 30, 2001.
       (2) Qualified period.--For purposes of this subsection, the 
     term ``qualified period'' means the period beginning on 
     January 11, 2002 and ending on the date that is 90 days after 
     the date of enactment of this Act.
       (d) Adjustment Assistance for Firms.--
       (1) In general.--Notwithstanding subsection (a) or any 
     other provision of law, including section 285 of the Trade 
     Act of 1974, and except as provided in paragraph (2) any firm 
     that would have been eligible to receive adjustment 
     assistance under chapter 3 of title II of the Trade Act if 
     1974 during the qualified period if such chapter 3 had been 
     in effect during such period, shall be eligible to receive 
     adjustment assistance under chapter 3 of title II of the 
     Trade Act of 1974, as in effect on September 30, 2001, for 
     any week during the qualified period for which the firm meets 
     the eligibility requirements of such chapter 3 as in effect 
     on September 30, 2001.
       (2) Qualified period.--For purposes of this subsection, the 
     term ``qualified period'' means the period beginning on 
     October 1, 2001 and ending on the date that is 90 days after 
     the date of enactment of this Act.

                      TITLE IX--REVENUE PROVISIONS

     SEC. 901. CUSTOM USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended 
     by striking ``2003'' and inserting ``2009''.

                   TITLE X--MISCELLANEOUS PROVISIONS

     SEC. 1001. COUNTRY OF ORIGIN LABELING OF FISH AND SHELLFISH 
                   PRODUCTS.

       (a) Definitions.--In this section:
       (1) Covered commodity.--The term ``covered commodity'' 
     means--
       (A) a perishable agricultural commodity; and
       (B) any fish or shellfish, and any fillet, steak, nugget, 
     or any other flesh from fish or shellfish, whether fresh, 
     chilled, frozen, canned, smoked, or otherwise preserved.
       (2) Food service establishment.--The term ``food service 
     establishment'' means a restaurant, cafeteria, lunch room, 
     food stand, saloon, tavern, bar, lounge, or other similar 
     facility operated as an enterprise engaged in the business of 
     selling food to the public.
       (3) Perishable agricultural commodity; retailer.--The terms 
     ``perishable agricultural commodity'' and ``retailer'' have 
     the meanings given the terms in section 1(b) of the 
     Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 
     499a(b)).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, acting through the Agricultural Marketing 
     Service.
       (b) Notice of Country of Origin.--
       (1) Requirement.--Except as provided in paragraph (3), a 
     retailer of a covered commodity shall inform consumers, at 
     the final point of sale of the covered commodity to 
     consumers, of the country of origin of the covered commodity.
       (2) United states country of origin.--A retailer of a 
     covered commodity may designate the covered commodity as 
     having a United States country of origin only if the covered 
     commodity is exclusively harvested and processed in the 
     United States, or in the case of farm-raised fish and 
     shellfish, is hatched, raised, harvested, and processed in 
     the United States.
       (3) Exemption for food service establishments.--Paragraph 
     (1) shall not apply to a covered commodity if the covered 
     commodity is prepared or served in a food service 
     establishment, and--
       (A) offered for sale or sold at the food service 
     establishment in normal retail quantities; or
       (B) served to consumers at the food service establishment.
       (c) Method of Notification.--
       (1) In general.--The information required by subsection (b) 
     may be provided to consumers by means of a label, stamp, 
     mark, placard, or other clear and visible sign on the covered 
     commodity or on the package, display, holding unit, or bin 
     containing the covered commodity at the final point of sale 
     to consumers.
       (2) Labeled commodities.--If the covered commodity is 
     already individually labeled for retail sale regarding 
     country of origin, the retailer shall not be required to 
     provide any additional information to comply with this 
     section.
       (d) Audit Verification System.--The Secretary may require 
     that any person that prepares, stores, handles, or 
     distributes a covered commodity for retail sale maintain a 
     verifiable recordkeeping audit trail that will permit the 
     Secretary to ensure compliance with the regulations 
     promulgated under subsection (g).
       (e) Information.--Any person engaged in the business of 
     supplying a covered commodity to a retailer shall provide 
     information to the retailer indicating the country of origin 
     of the covered commodity.
       (f) Enforcement.--
       (1) In general.--Each Federal agency having jurisdiction 
     over retailers of covered commodities shall, at such time as 
     the necessary regulations are adopted under subsection (g), 
     adopt measures intended to ensure that the requirements of 
     this section are followed by affected retailers.
       (2) Violation.--A violation of subsection (b) shall be 
     treated as a violation under the Agricultural Marketing Act 
     of 1946 (7 U.S.C. 1621 et seq.).
       (g) Regulations.--
       (1) In general.--The Secretary may promulgate such 
     regulations as are necessary to carry out this section within 
     1 year after the date of enactment of this Act.

[[Page S3671]]

       (2) Partnerships with states.--In promulgating the 
     regulations, the Secretary shall, to the maximum extent 
     practicable, enter into partnerships with States that have 
     the enforcement infrastructure necessary to carry out this 
     section.
       (h) Application.--This section shall apply to the retail 
     sale of a covered commodity beginning on the date that is 180 
     days after the date of enactment of this Act.

     SEC. 1002. SUGAR POLICY.

       (a) Findings.--Congress finds that--
       (1) the tariff-rate quotas imposed on imports of sugar, 
     syrups and sugar-containing products under chapters 17, 18, 
     19, and 21 of the Harmonized Tariff Schedule of the United 
     States are an essential element of United States sugar 
     policy;
       (2) circumvention of the tariff-rate quotas will, if 
     unchecked, make it impossible to achieve the objectives of 
     United States sugar policy;
       (3) the tariff-rate quotas have been circumvented 
     frequently, defeating the purposes of United States sugar 
     policy and causing disruption to the United States market for 
     sweeteners, injury to domestic growers, refiners, and 
     processors of sugar, and adversely affecting legitimate 
     exporters of sugar to the United States;
       (4) it is essential to United States sugar policy that the 
     tariff-rate quotas be enforced and that deceptive practices 
     be prevented, including the importation of products with no 
     commercial use and failure to disclose all relevant 
     information to the United States Customs Service; and
       (5) unless action is taken to prevent circumvention, 
     circumvention of the tariff-rate quotas will continue and 
     will ultimately destroy United States sugar policy.
       (b) Policy.--It is the policy of the United States to 
     maintain the integrity of the tariff-rate quotas on sugars, 
     syrups, and sugar-containing products by stopping 
     circumvention as soon as it becomes apparent. It is also the 
     policy of the United States that products not used to 
     circumvent the tariff-rate quotas, such as molasses used for 
     animal feed or for rum, not be affected by any action taken 
     pursuant to this Act.
       (c) Identification of Imports.--
       (1) Identification.--Not later than 30 days after the date 
     of enactment of this Act, and on a regular basis thereafter, 
     the Secretary of Agriculture shall--
       (A) identify imports of articles that are circumventing 
     tariff-rate quotas on sugars, syrups, or sugar-containing 
     products imposed under chapter 17, 18, 19, or 21 of the 
     Harmonized Tariff Schedule of the United States; and
       (B) report to the President the articles found to be 
     circumventing the tariff-rate quotas.
       (2) Action by president.--Upon receiving the report from 
     the Secretary of Agriculture, the President shall, by 
     proclamation, include any article identified by the Secretary 
     in the appropriate tariff-rate quota provision of the 
     Harmonized Tariff Schedule.

                   TITLE XI--CUSTOMS REAUTHORIZATION

     SEC. 1101. SHORT TITLE.

       This title may be cited as the ``Customs Border Security 
     Act of 2002''.

               Subtitle A--United States Customs Service

  CHAPTER 1--DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND COMMERCIAL 
                               OPERATIONS

     SEC. 1111. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL 
                   OPERATIONS, COMMERCIAL OPERATIONS, AND AIR AND 
                   MARINE INTERDICTION.

       (a) Noncommercial Operations.--Section 301(b)(1) of the 
     Customs Procedural Reform and Simplification Act of 1978 (19 
     U.S.C. 2075(b)(1)) is amended--
       (1) in subparagraph (A) to read as follows:
       ``(A) $886,513,000 for fiscal year 2003.''; and
       (2) in subparagraph (B) to read as follows:
       ``(B) $909,471,000 for fiscal year 2004.''.
       (b) Commercial Operations.--
       (1) In general.--Section 301(b)(2)(A) of the Customs 
     Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
     2075(b)(2)(A)) is amended--
       (A) in clause (i) to read as follows:
       ``(i) $1,603,482,000 for fiscal year 2003.''; and
       (B) in clause (ii) to read as follows:
       ``(ii) $1,645,009,000 for fiscal year 2004.''.
       (2) Automated commercial environment computer system.--Of 
     the amount made available for each of fiscal years 2003 and 
     2004 under section 301(b)(2)(A) of the Customs Procedural 
     Reform and Simplification Act of 1978 (19 U.S.C. 
     2075(b)(2)(A)), as amended by paragraph (1), $308,000,000 
     shall be available until expended for each such fiscal year 
     for the development, establishment, and implementation of the 
     Automated Commercial Environment computer system.
       (3) Reports.--Not later than 90 days after the date of 
     enactment of this Act, and not later than each subsequent 90-
     day period, the Commissioner of Customs shall prepare and 
     submit to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     report demonstrating that the development and establishment 
     of the Automated Commercial Environment computer system is 
     being carried out in a cost-effective manner and meets the 
     modernization requirements of title VI of the North American 
     Free Trade Agreements Implementation Act.
       (c) Air and Marine Interdiction.--Section 301(b)(3) of the 
     Customs Procedural Reform and Simplification Act of 1978 (19 
     U.S.C. 2075(b)(3)) is amended--
       (1) in subparagraph (A) to read as follows:
       ``(A) $181,860,000 for fiscal year 2003.''; and
       (2) in subparagraph (B) to read as follows:
       ``(B) $186,570,000 for fiscal year 2004.''.
       (d) Submission of Out-Year Budget Projections.--Section 
     301(a) of the Customs Procedural Reform and Simplification 
     Act of 1978 (19 U.S.C. 2075(a)) is amended by adding at the 
     end the following:
       ``(3) By not later than the date on which the President 
     submits to Congress the budget of the United States 
     Government for a fiscal year, the Commissioner of Customs 
     shall submit to the Committee on Ways and Means of the House 
     of Representatives and the Committee on Finance of the Senate 
     the projected amount of funds for the succeeding fiscal year 
     that will be necessary for the operations of the Customs 
     Service as provided for in subsection (b).''.

     SEC. 1112. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION 
                   EQUIPMENT FOR THE UNITED STATES-MEXICO BORDER, 
                   UNITED STATES-CANADA BORDER, AND FLORIDA AND 
                   THE GULF COAST SEAPORTS.

       (a) Fiscal Year 2003.--Of the amounts made available for 
     fiscal year 2003 under section 301(b)(1)(A) of the Customs 
     Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
     2075(b)(1)(A)), as amended by section 1111(a) of this title, 
     $90,244,000 shall be available until expended for acquisition 
     and other expenses associated with implementation and 
     deployment of antiterrorist and illicit narcotics detection 
     equipment along the United States-Mexico border, the United 
     States-Canada border, and Florida and the Gulf Coast 
     seaports, as follows:
       (1) United states-mexico border.--For the United States-
     Mexico border, the following:
       (A) $6,000,000 for 8 Vehicle and Container Inspection 
     Systems (VACIS).
       (B) $11,200,000 for 5 mobile truck x-rays with transmission 
     and backscatter imaging.
       (C) $13,000,000 for the upgrade of 8 fixed-site truck x-
     rays from the present energy level of 450,000 electron volts 
     to 1,000,000 electron volts (1-MeV).
       (D) $7,200,000 for 8 1-MeV pallet x-rays.
       (E) $1,000,000 for 200 portable contraband detectors 
     (busters) to be distributed among ports where the current 
     allocations are inadequate.
       (F) $600,000 for 50 contraband detection kits to be 
     distributed among all southwest border ports based on traffic 
     volume.
       (G) $500,000 for 25 ultrasonic container inspection units 
     to be distributed among all ports receiving liquid-filled 
     cargo and to ports with a hazardous material inspection 
     facility.
       (H) $2,450,000 for 7 automated targeting systems.
       (I) $360,000 for 30 rapid tire deflator systems to be 
     distributed to those ports where port runners are a threat.
       (J) $480,000 for 20 portable Treasury Enforcement 
     Communications Systems (TECS) terminals to be moved among 
     ports as needed.
       (K) $1,000,000 for 20 remote watch surveillance camera 
     systems at ports where there are suspicious activities at 
     loading docks, vehicle queues, secondary inspection lanes, or 
     areas where visual surveillance or observation is obscured.
       (L) $1,254,000 for 57 weigh-in-motion sensors to be 
     distributed among the ports with the greatest volume of 
     outbound traffic.
       (M) $180,000 for 36 AM traffic information radio stations, 
     with 1 station to be located at each border crossing.
       (N) $1,040,000 for 260 inbound vehicle counters to be 
     installed at every inbound vehicle lane.
       (O) $950,000 for 38 spotter camera systems to counter the 
     surveillance of customs inspection activities by persons 
     outside the boundaries of ports where such surveillance 
     activities are occurring.
       (P) $390,000 for 60 inbound commercial truck transponders 
     to be distributed to all ports of entry.
       (Q) $1,600,000 for 40 narcotics vapor and particle 
     detectors to be distributed to each border crossing.
       (R) $400,000 for license plate reader automatic targeting 
     software to be installed at each port to target inbound 
     vehicles.
       (2) United states-canada border.--For the United States-
     Canada border, the following:
       (A) $3,000,000 for 4 Vehicle and Container Inspection 
     Systems (VACIS).
       (B) $8,800,000 for 4 mobile truck x-rays with transmission 
     and backscatter imaging.
       (C) $3,600,000 for 4 1-MeV pallet x-rays.
       (D) $250,000 for 50 portable contraband detectors (busters) 
     to be distributed among ports where the current allocations 
     are inadequate.
       (E) $300,000 for 25 contraband detection kits to be 
     distributed among ports based on traffic volume.
       (F) $240,000 for 10 portable Treasury Enforcement 
     Communications Systems (TECS) terminals to be moved among 
     ports as needed.
       (G) $400,000 for 10 narcotics vapor and particle detectors 
     to be distributed to each border crossing based on traffic 
     volume.
       (3) Florida and gulf coast seaports.--For Florida and the 
     Gulf Coast seaports, the following:
       (A) $4,500,000 for 6 Vehicle and Container Inspection 
     Systems (VACIS).
       (B) $11,800,000 for 5 mobile truck x-rays with transmission 
     and backscatter imaging.
       (C) $7,200,000 for 8 1-MeV pallet x-rays.
       (D) $250,000 for 50 portable contraband detectors (busters) 
     to be distributed among

[[Page S3672]]

     ports where the current allocations are inadequate.
       (E) $300,000 for 25 contraband detection kits to be 
     distributed among ports based on traffic volume.
       (b) Fiscal Year 2004.--Of the amounts made available for 
     fiscal year 2004 under section 301(b)(1)(B) of the Customs 
     Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
     2075(b)(1)(B)), as amended by section 1111(a) of this title, 
     $9,000,000 shall be available until expended for the 
     maintenance and support of the equipment and training of 
     personnel to maintain and support the equipment described in 
     subsection (a).
       (c) Acquisition of Technologically Superior Equipment; 
     Transfer of Funds.--
       (1) In general.--The Commissioner of Customs may use 
     amounts made available for fiscal year 2003 under section 
     301(b)(1)(A) of the Customs Procedural Reform and 
     Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as 
     amended by section 1111(a) of this title, for the acquisition 
     of equipment other than the equipment described in subsection 
     (a) if such other equipment--
       (A)(i) is technologically superior to the equipment 
     described in subsection (a); and
       (ii) will achieve at least the same results at a cost that 
     is the same or less than the equipment described in 
     subsection (a); or
       (B) can be obtained at a lower cost than the equipment 
     described in subsection (a).
       (2) Transfer of funds.--Notwithstanding any other provision 
     of this section, the Commissioner of Customs may reallocate 
     an amount not to exceed 10 percent of--
       (A) the amount specified in any of subparagraphs (A) 
     through (R) of subsection (a)(1) for equipment specified in 
     any other of such subparagraphs (A) through (R);
       (B) the amount specified in any of subparagraphs (A) 
     through (G) of subsection (a)(2) for equipment specified in 
     any other of such subparagraphs (A) through (G); and
       (C) the amount specified in any of subparagraphs (A) 
     through (E) of subsection (a)(3) for equipment specified in 
     any other of such subparagraphs (A) through (E).

     SEC. 1113. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.

       As part of the annual performance plan for each of the 
     fiscal years 2003 and 2004 covering each program activity set 
     forth in the budget of the United States Customs Service, as 
     required under section 1115 of title 31, United States Code, 
     the Commissioner of Customs shall establish performance 
     goals, performance indicators, and comply with all other 
     requirements contained in paragraphs (1) through (6) of 
     subsection (a) of such section with respect to each of the 
     activities to be carried out pursuant to sections 1121 of 
     this title.

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

     SEC. 1121. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO 
                   PREVENT CHILD PORNOGRAPHY/CHILD SEXUAL 
                   EXPLOITATION.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Customs Service $10,000,000 for 
     fiscal year 2003 to carry out the program to prevent child 
     pornography/child sexual exploitation established by the 
     Child Cyber-Smuggling Center of the Customs Service.
       (b) Use of Amounts for Child Pornography Cyber Tipline.--Of 
     the amount appropriated under subsection (a), the Customs 
     Service shall provide 3.75 percent of such amount to the 
     National Center for Missing and Exploited Children for the 
     operation of the child pornography cyber tipline of the 
     Center and for increased public awareness of the tipline.

                  CHAPTER 3--MISCELLANEOUS PROVISIONS

     SEC. 1131. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED 
                   STATES-CANADA BORDER.

       Of the amount made available for fiscal year 2003 under 
     paragraphs (1) and (2)(A) of section 301(b) of the Customs 
     Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
     2075(b)), as amended by section 1111 of this title, 
     $25,000,000 shall be available until expended for the Customs 
     Service to hire approximately 285 additional Customs Service 
     officers to address the needs of the offices and ports along 
     the United States-Canada border.

     SEC. 1132. STUDY AND REPORT RELATING TO PERSONNEL PRACTICES 
                   OF THE CUSTOMS SERVICE.

       (a) Study.--The Commissioner of Customs shall conduct a 
     study of current personnel practices of the Customs Service, 
     including an overview of performance standards and the effect 
     and impact of the collective bargaining process on drug 
     interdiction efforts of the Customs Service and a comparison 
     of duty rotation policies of the Customs Service and other 
     Federal agencies that employ similarly-situated personnel.
       (b) Report.--Not later than 120 days after the date of 
     enactment of this Act, the Commissioner of Customs shall 
     submit to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     report containing the results of the study conducted under 
     subsection (a).

     SEC. 1133. STUDY AND REPORT RELATING TO ACCOUNTING AND 
                   AUDITING PROCEDURES OF THE CUSTOMS SERVICE.

       (a) Study.--(1) The Commissioner of Customs shall conduct a 
     study of actions by the Customs Service to ensure that 
     appropriate training is being provided to Customs Service 
     personnel who are responsible for financial auditing of 
     importers.
       (2) In conducting the study, the Commissioner--
       (A) shall specifically identify those actions taken to 
     comply with provisions of law that protect the privacy and 
     trade secrets of importers, such as section 552(b) of title 
     5, United States Code, and section 1905 of title 18, United 
     States Code; and
       (B) shall provide for public notice and comment relating to 
     verification of the actions described in subparagraph (A).
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Commissioner of Customs shall 
     submit to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     report containing the results of the study conducted under 
     subsection (a).

     SEC. 1134. ESTABLISHMENT AND IMPLEMENTATION OF COST 
                   ACCOUNTING SYSTEM; REPORTS.

       (a) Establishment and Implementation.--
       (1) In general.--Not later than September 30, 2003, the 
     Commissioner of Customs shall, in accordance with the audit 
     of the Customs Service's fiscal years 2000 and 1999 financial 
     statements (as contained in the report of the Office of the 
     Inspector General of the Department of the Treasury issued on 
     February 23, 2001), establish and implement a cost accounting 
     system for expenses incurred in both commercial and 
     noncommercial operations of the Customs Service.
       (2) Additional requirement.--The cost accounting system 
     described in paragraph (1) shall provide for an 
     identification of expenses based on the type of operation, 
     the port at which the operation took place, the amount of 
     time spent on the operation by personnel of the Customs 
     Service, and an identification of expenses based on any other 
     appropriate classification necessary to provide for an 
     accurate and complete accounting of the expenses.
       (b) Reports.--Beginning on the date of enactment of this 
     Act and ending on the date on which the cost accounting 
     system described in subsection (a) is fully implemented, the 
     Commissioner of Customs shall prepare and submit to Congress 
     on a quarterly basis a report on the progress of implementing 
     the cost accounting system pursuant to subsection (a).

     SEC. 1135. STUDY AND REPORT RELATING TO TIMELINESS OF 
                   PROSPECTIVE RULINGS.

       (a) Study.--The Comptroller General shall conduct a study 
     on the extent to which the Office of Regulations and Rulings 
     of the Customs Service has made improvements to decrease the 
     amount of time to issue prospective rulings from the date on 
     which a request for the ruling is received by the Customs 
     Service.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     report containing the results of the study conducted under 
     subsection (a).
       (c) Definition.--In this section, the term ``prospective 
     ruling'' means a ruling that is requested by an importer on 
     goods that are proposed to be imported into the United States 
     and that relates to the proper classification, valuation, or 
     marking of such goods.

     SEC. 1136. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.

       (a) Study.--The Comptroller General shall conduct a study 
     on the extent to which the amount of each customs user fee 
     imposed under section 13031(a) of the Consolidated Omnibus 
     Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)) is 
     commensurate with the level of services provided by the 
     Customs Service relating to the fee so imposed.
       (b) Report.--Not later than 120 days after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     report in classified form containing--
       (1) the results of the study conducted under subsection 
     (a); and
       (2) recommendations for the appropriate amount of the 
     customs user fees if such results indicate that the fees are 
     not commensurate with the level of services provided by the 
     Customs Service.

                  CHAPTER 4--ANTITERRORISM PROVISIONS

     SEC. 1141. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY, 
                   OR STAFFING OF THE CUSTOMS SERVICE.

       Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is 
     amended--
       (1) by striking ``Whenever the President'' and inserting 
     ``(a) Whenever the President''; and
       (2) by adding at the end the following:
       ``(b)(1) Notwithstanding any other provision of law, the 
     Secretary of the Treasury, when necessary to respond to a 
     national emergency declared under the National Emergencies 
     Act (50 U.S.C. 1601 et seq.) or to a specific threat to human 
     life or national interests, is authorized to take the 
     following actions on a temporary basis:
       ``(A) Eliminate, consolidate, or relocate any office or 
     port of entry of the Customs Service.
       ``(B) Modify hours of service, alter services rendered at 
     any location, or reduce the number of employees at any 
     location.

[[Page S3673]]

       ``(C) Take any other action that may be necessary to 
     directly respond to the national emergency or specific 
     threat.
       ``(2) Notwithstanding any other provision of law, the 
     Commissioner of Customs, when necessary to respond to a 
     specific threat to human life or national interests, is 
     authorized to close temporarily any Customs office or port of 
     entry or take any other lesser action that may be necessary 
     to respond to the specific threat.
       ``(3) The Secretary of the Treasury or the Commissioner of 
     Customs, as the case may be, shall notify the Committee on 
     Ways and Means of the House of Representatives and the 
     Committee on Finance of the Senate not later than 72 hours 
     after taking any action under paragraph (1) or (2).''.

     SEC. 1142. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR 
                   CARGO AND PASSENGERS.

       (a) Cargo Information.--
       (1) In general.--Section 431(b) of the Tariff Act of 1930 
     (19 U.S.C. 1431(b)) is amended--
       (A) in the first sentence, by striking ``Any manifest'' and 
     inserting ``(1) Any manifest''; and
       (B) by adding at the end the following:
       ``(2) In addition to any other requirement under this 
     section, for each land, air, or vessel carrier required to 
     make entry or obtain clearance under the customs laws of the 
     United States, the pilot, the master, operator, or owner of 
     such carrier (or the authorized agent of such operator or 
     owner) shall provide by electronic transmission cargo 
     manifest information in advance of such entry or clearance in 
     such manner, time, and form as prescribed under regulations 
     by the Secretary. The Secretary may exclude any class of 
     land, air, or vessel carrier for which the Secretary 
     concludes the requirements of this subparagraph are not 
     necessary.''.
       (2) Conforming amendments.--Subparagraphs (A) and (C) of 
     section 431(d)(1) of such Act are each amended by inserting 
     before the semicolon ``or subsection (b)(2)''.
       (b) Passenger Information.--Part II of title IV of the 
     Tariff Act of 1930 (19 U.S.C. 1431 et seq.) is amended by 
     inserting after section 431 the following:

     ``SEC. 432. PASSENGER AND CREW MANIFEST INFORMATION REQUIRED 
                   FOR LAND, AIR, OR VESSEL CARRIERS.

       ``(a) In General.--For every person arriving or departing 
     on a land, air, or vessel carrier required to make entry or 
     obtain clearance under the customs laws of the United States, 
     the pilot, the master, operator, or owner of such carrier (or 
     the authorized agent of such operator or owner) shall provide 
     by electronic transmission manifest information described in 
     subsection (b) in advance of such entry or clearance in such 
     manner, time, and form as prescribed under regulations by the 
     Secretary.
       ``(b) Information Described.--The information described in 
     this subsection shall include for each person described in 
     subsection (a), the person's--
       ``(1) full name;
       ``(2) date of birth and citizenship;
       ``(3) gender;
       ``(4) passport number and country of issuance;
       ``(5) United States visa number or resident alien card 
     number, as applicable;
       ``(6) passenger name record; and
       ``(7) such additional information that the Secretary, by 
     regulation, determines is reasonably necessary to ensure 
     aviation and maritime safety pursuant to the laws enforced or 
     administered by the Customs Service.''.
       (c) Definition.--Section 401 of the Tariff Act of 1930 (19 
     U.S.C. 1401) is amended by adding at the end the following:
       ``(t) The term `land, air, or vessel carrier' means a land, 
     air, or vessel carrier, as the case may be, that transports 
     goods or passengers for payment or other consideration, 
     including money or services rendered.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect beginning 45 days after the date of 
     enactment of this Act.

     SEC. 1143. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND IN 
                   OUTBOUND MAIL.

       The Tariff Act of 1930 is amended by inserting after 
     section 582 the following:

     ``SEC. 583. EXAMINATION OF OUTBOUND MAIL.

       ``(a) Examination.--
       ``(1) In general.--For purposes of ensuring compliance with 
     the Customs laws of the United States and other laws enforced 
     by the Customs Service, including the provisions of law 
     described in paragraph (2), a Customs officer may, subject to 
     the provisions of this section, stop and search at the 
     border, without a search warrant, mail of domestic origin 
     transmitted for export by the United States Postal Service 
     and foreign mail transiting the United States that is being 
     imported or exported by the United States Postal Service.
       ``(2) Provisions of law described.--The provisions of law 
     described in this paragraph are the following:
       ``(A) Section 5316 of title 31, United States Code 
     (relating to reports on exporting and importing monetary 
     instruments).
       ``(B) Sections 1461, 1463, 1465, and 1466 and chapter 110 
     of title 18, United States Code (relating to obscenity and 
     child pornography).
       ``(C) Section 1003 of the Controlled Substances Import and 
     Export Act (21 U.S.C. 953; relating to exportation of 
     controlled substances).
       ``(D) The Export Administration Act of 1979 (50 U.S.C. App. 
     2401 et seq.).
       ``(E) Section 38 of the Arms Export Control Act (22 U.S.C. 
     2778).
       ``(F) The International Emergency Economic Powers Act (50 
     U.S.C. 1701 et seq.).
       ``(b) Search of Mail Not Sealed Against Inspection and 
     Other Mail.--Mail not sealed against inspection under the 
     postal laws and regulations of the United States, mail which 
     bears a customs declaration, and mail with respect to which 
     the sender or addressee has consented in writing to search, 
     may be searched by a Customs officer.
       ``(c) Search of Mail Sealed Against Inspection.--(1) Mail 
     sealed against inspection under the postal laws and 
     regulations of the United States may be searched by a Customs 
     officer, subject to paragraph (2), upon reasonable cause to 
     suspect that such mail contains one or more of the following:
       ``(A) Monetary instruments, as defined in section 1956 of 
     title 18, United States Code.
       ``(B) A weapon of mass destruction, as defined in section 
     2332a(b) of title 18, United States Code.
       ``(C) A drug or other substance listed in schedule I, II, 
     III, or IV in section 202 of the Controlled Substances Act 
     (21 U.S.C. 812).
       ``(D) National defense and related information transmitted 
     in violation of any of sections 793 through 798 of title 18, 
     United States Code.
       ``(E) Merchandise mailed in violation of section 1715 or 
     1716 of title 18, United States Code.
       ``(F) Merchandise mailed in violation of any provision of 
     chapter 71 (relating to obscenity) or chapter 110 (relating 
     to sexual exploitation and other abuse of children) of title 
     18, United States Code.
       ``(G) Merchandise mailed in violation of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2401 et seq.).
       ``(H) Merchandise mailed in violation of section 38 of the 
     Arms Export Control Act (22 U.S.C. 2778).
       ``(I) Merchandise mailed in violation of the International 
     Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
       ``(J) Merchandise mailed in violation of the Trading with 
     the Enemy Act (50 U.S.C. App. 1 et seq.).
       ``(K) Merchandise subject to any other law enforced by the 
     Customs Service.
       ``(2) No person acting under authority of paragraph (1) 
     shall read, or authorize any other person to read, any 
     correspondence contained in mail sealed against inspection 
     unless prior to so reading--
       ``(A) a search warrant has been issued pursuant to Rule 41, 
     Federal Rules of Criminal Procedure; or
       ``(B) the sender or addressee has given written 
     authorization for such reading.''.

     SEC. 1144. AUTHORIZATION OF APPROPRIATIONS FOR 
                   REESTABLISHMENT OF CUSTOMS OPERATIONS IN NEW 
                   YORK CITY.

       (a) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated for 
     the reestablishment of operations of the Customs Service in 
     New York, New York, such sums as may be necessary for fiscal 
     year 2003.
       (2) Operations described.--The operations referred to in 
     paragraph (1) include, but are not limited to, the following:
       (A) Operations relating to the Port Director of New York 
     City, the New York Customs Management Center (including the 
     Director of Field Operations), and the Special Agent-In-
     Charge for New York.
       (B) Commercial operations, including textile enforcement 
     operations and salaries and expenses of--
       (i) trade specialists who determine the origin and value of 
     merchandise;
       (ii) analysts who monitor the entry data into the United 
     States of textiles and textile products; and
       (iii) Customs officials who work with foreign governments 
     to examine textile makers and verify entry information.
       (b) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under subsection (a) are 
     authorized to remain available until expended.

              CHAPTER 5--TEXTILE TRANSSHIPMENT PROVISIONS

     SEC. 1151. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY 
                   CUSTOMS SERVICE.

       (a) GAO Audit.--The Comptroller General of the United 
     States shall conduct an audit of the system established and 
     carried out by the Customs Service to monitor textile 
     transshipment.
       (b) Report.--Not later than 9 months after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and Committee on Finance of the Senate a 
     report that contains the results of the study conducted under 
     subsection (a), including recommendations for improvements to 
     the transshipment monitoring system if applicable.
       (c) Transshipment Described.--Transshipment within the 
     meaning of this section has occurred when preferential 
     treatment under any provision of law has been claimed for a 
     textile or apparel article on the basis of material false 
     information concerning the country of origin, manufacture, 
     processing, or assembly of the article or any of its 
     components. For purposes of the preceding sentence, false 
     information is material if disclosure of the true information 
     would mean or would have meant that the article is or was 
     ineligible for preferential treatment under the provision of 
     law in question.

     SEC. 1152. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE 
                   TRANSSHIPMENT ENFORCEMENT OPERATIONS.

       (a) Authorization of Appropriations.--

[[Page S3674]]

       (1) In general.--There is authorized to be appropriated for 
     textile transshipment enforcement operations of the Customs 
     Service $9,500,000 for fiscal year 2003.
       (2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) are 
     authorized to remain available until expended.
       (b) Use of Funds.--Of the amount appropriated pursuant to 
     the authorization of appropriations under subsection (a), the 
     following amounts are authorized to be made available for the 
     following purposes:
       (1) Import specialists.--$1,463,000 for 21 Customs import 
     specialists to be assigned to selected ports for 
     documentation review to support detentions and exclusions and 
     1 additional Customs import specialist assigned to the 
     Customs headquarters textile program to administer the 
     program and provide oversight.
       (2) Inspectors.--$652,080 for 10 Customs inspectors to be 
     assigned to selected ports to examine targeted high-risk 
     shipments.
       (3) Investigators.--(A) $1,165,380 for 10 investigators to 
     be assigned to selected ports to investigate instances of 
     smuggling, quota and trade agreement circumvention, and use 
     of counterfeit visas to enter inadmissible goods.
       (B) $149,603 for 1 investigator to be assigned to Customs 
     headquarters textile program to coordinate and ensure 
     implementation of textile production verification team 
     results from an investigation perspective.
       (4) International trade specialists.--$226,500 for 3 
     international trade specialists to be assigned to Customs 
     headquarters to be dedicated to illegal textile transshipment 
     policy issues and other free trade agreement enforcement 
     issues.
       (5) Permanent import specialists for hong kong.--$500,000 
     for 2 permanent import specialist positions and $500,000 for 
     2 investigators to be assigned to Hong Kong to work with Hong 
     Kong and other government authorities in Southeast Asia to 
     assist such authorities pursue proactive enforcement of 
     bilateral trade agreements.
       (6) Various permanent trade positions.--$3,500,000 for the 
     following:
       (A) 2 permanent positions to be assigned to the Customs 
     attache office in Central America to address trade 
     enforcement issues for that region.
       (B) 2 permanent positions to be assigned to the Customs 
     attache office in South Africa to address trade enforcement 
     issues pursuant to the African Growth and Opportunity Act 
     (title I of Public Law 106-200).
       (C) 4 permanent positions to be assigned to the Customs 
     attache office in Mexico to address the threat of illegal 
     textile transshipment through Mexico and other related issues 
     under the North American Free Trade Agreement Act.
       (D) 2 permanent positions to be assigned to the Customs 
     attache office in Seoul, South Korea, to address the trade 
     issues in the geographic region.
       (E) 2 permanent positions to be assigned to the proposed 
     Customs attache office in New Delhi, India, to address the 
     threat of illegal textile transshipment and other trade 
     enforcement issues.
       (F) 2 permanent positions to be assigned to the Customs 
     attache office in Rome, Italy, to address trade enforcement 
     issues in the geographic region, including issues under free 
     trade agreements with Jordan and Israel.
       (7) Attorneys.--$179,886 for 2 attorneys for the Office of 
     the Chief Counsel of the Customs Service to pursue cases 
     regarding illegal textile transshipment.
       (8) Auditors.--$510,000 for 6 Customs auditors to perform 
     internal control reviews and document and record reviews of 
     suspect importers.
       (9) Additional travel funds.--$250,000 for deployment of 
     additional textile production verification teams to sub-
     Saharan Africa.
       (10) Training.--(A) $75,000 for training of Customs 
     personnel.
       (B) $200,000 for training for foreign counterparts in risk 
     management analytical techniques and for teaching factory 
     inspection techniques, model law Development, and enforcement 
     techniques.
       (11) Outreach.--$60,000 for outreach efforts to United 
     States importers.

     SEC. 1153. IMPLEMENTATION OF THE AFRICAN GROWTH AND 
                   OPPORTUNITY ACT.

       Of the amount made available for fiscal year 2003 under 
     section 301(b)(2)(A) of the Customs Procedural Reform and 
     Simplification Act of 1978 (19 U.S.C. 2075(b)(2)(A)), as 
     amended by section 1111(b)(1) of this title, $1,317,000 shall 
     be available until expended for the Customs Service to 
     provide technical assistance to help sub-Saharan Africa 
     countries develop and implement effective visa and anti-
     transshipment systems as required by the African Growth and 
     Opportunity Act (title I of Public Law 106-200), as follows:
       (1) Travel funds.--$600,000 for import specialists, special 
     agents, and other qualified Customs personnel to travel to 
     sub-Saharan Africa countries to provide technical assistance 
     in developing and implementing effective visa and anti-
     transshipment systems.
       (2) Import specialists.--$266,000 for 4 import specialists 
     to be assigned to Customs headquarters to be dedicated to 
     providing technical assistance to sub-Saharan African 
     countries for developing and implementing effective visa and 
     anti-transshipment systems.
       (3) Data reconciliation analysts.--$151,000 for 2 data 
     reconciliation analysts to review apparel shipments.
       (4) Special agents.--$300,000 for 2 special agents to be 
     assigned to Customs headquarters to be available to provide 
     technical assistance to sub-Saharan African countries in the 
     performance of investigations and other enforcement 
     initiatives.

      Subtitle B--Office of the United States Trade Representative

     SEC. 1161. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 141(g)(1) of the Trade Act of 1974 
     (19 U.S.C. 2171(g)(1)) is amended--
       (1) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking ``not 
     to exceed'';
       (B) in clause (i) to read as follows:
       ``(i) $30,000,000 for fiscal year 2003.''; and
       (C) in clause (ii) to read as follows:
       ``(ii) $31,000,000 for fiscal year 2004.''; and
       (2) in subparagraph (B)--
       (A) in clause (i), by adding ``and'' at the end;
       (B) by striking clause (ii); and
       (C) by redesignating clause (iii) as clause (ii).
       (b) Submission of Out-Year Budget Projections.--Section 
     141(g) of the Trade Act of 1974 (19 U.S.C. 2171(g)) is 
     amended by adding at the end the following:
       ``(3) By not later than the date on which the President 
     submits to Congress the budget of the United States 
     Government for a fiscal year, the United States Trade 
     Representative shall submit to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate the projected amount of funds for the 
     succeeding fiscal year that will be necessary for the Office 
     to carry out its functions.''.
       (c) Additional Staff for Office of Assistant U.S. Trade 
     Representative for Congressional Affairs.--
       (1) In general.--There is authorized to be appropriated 
     such sums as may be necessary for fiscal year 2003 for the 
     salaries and expenses of two additional legislative 
     specialist employee positions within the Office of the 
     Assistant United States Trade Representative for 
     Congressional Affairs.
       (2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) are 
     authorized to remain available until expended.

        Subtitle C--United States International Trade Commission

     SEC. 1171. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 330(e)(2)(A) of the Tariff Act of 
     1930 (19 U.S.C. 1330(e)(2)) is amended--
       (1) in clause (i) to read as follows:
       ``(i) $51,400,000 for fiscal year 2003.''; and
       (2) in clause (ii) to read as follows:
       ``(ii) $53,400,000 for fiscal year 2004.''.
       (b) Submission of Out-Year Budget Projections.--Section 
     330(e) of the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is 
     amended by adding at the end the following:
       ``(4) By not later than the date on which the President 
     submits to Congress the budget of the United States 
     Government for a fiscal year, the Commission shall submit to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate 
     the projected amount of funds for the succeeding fiscal year 
     that will be necessary for the Commission to carry out its 
     functions.''.

                   Subtitle D--Other Trade Provisions

     SEC. 1181. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT 
                   FROM DUTY ACQUIRED ABROAD BY UNITED STATES 
                   RESIDENTS.

       (a) In General.--Subheading 9804.00.65 of the Harmonized 
     Tariff Schedule of the United States is amended in the 
     article description column by striking ``$400'' and inserting 
     ``$800''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect 90 days after the date of enactment of this 
     Act.

     SEC. 1182. REGULATORY AUDIT PROCEDURES.

       Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 
     1509(b)) is amended by adding at the end the following:
       ``(6)(A) If during the course of any audit concluded under 
     this subsection, the Customs Service identifies overpayments 
     of duties or fees or over-declarations of quantities or 
     values that are within the time period and scope of the audit 
     that the Customs Service has defined, then in calculating the 
     loss of revenue or monetary penalties under section 592, the 
     Customs Service shall treat the overpayments or over-
     declarations on finally liquidated entries as an offset to 
     any underpayments or underdeclarations also identified on 
     finally liquidated entries if such overpayments or over-
     declarations were not made by the person being audited for 
     the purpose of violating any provision of law.
       ``(B) Nothing in this paragraph shall be construed to 
     authorize a refund not otherwise authorized under section 
     520.''.

                      Subtitle E--Sense of Senate

     SEC. 1191. SENSE OF SENATE.

       It is the sense of the Senate that fees collected for 
     certain customs services (commonly referred to as ``customs 
     user fees'') provided for in section 13031 of the 
     Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
     U.S.C. 58c) may be used only for the operations and programs 
     of the United States Customs Service.

            DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY

                  TITLE XXI--TRADE PROMOTION AUTHORITY

     SEC. 2101. SHORT TITLE; FINDINGS.

       (a) Short Title.--This title may be cited as the 
     ``Bipartisan Trade Promotion Authority Act of 2002''.

[[Page S3675]]

       (b) Findings.--Congress makes the following findings:
       (1) The expansion of international trade is vital to the 
     national security of the United States. Trade is critical to 
     the economic growth and strength of the United States and to 
     its leadership in the world. Stable trading relationships 
     promote security and prosperity. Trade agreements today serve 
     the same purposes that security pacts played during the Cold 
     War, binding nations together through a series of mutual 
     rights and obligations. Leadership by the United States in 
     international trade fosters open markets, democracy, and 
     peace throughout the world.
       (2) The national security of the United States depends on 
     its economic security, which in turn is founded upon a 
     vibrant and growing industrial base. Trade expansion has been 
     the engine of economic growth. Trade agreements maximize 
     opportunities for the critical sectors and building blocks of 
     the economy of the United States, such as information 
     technology, telecommunications and other leading 
     technologies, basic industries, capital equipment, medical 
     equipment, services, agriculture, environmental technology, 
     and intellectual property. Trade will create new 
     opportunities for the United States and preserve the 
     unparalleled strength of the United States in economic, 
     political, and military affairs. The United States, secured 
     by expanding trade and economic opportunities, will meet the 
     challenges of the twenty-first century.
       (3) Support for continued trade expansion requires that 
     dispute settlement procedures under international trade 
     agreements not add to or diminish the rights and obligations 
     provided in such agreements. Nevertheless, in several cases, 
     dispute settlement panels and the WTO Appellate Body have 
     added to obligations and diminished rights of the United 
     States under WTO Agreements. In particular, dispute 
     settlement panels and the Appellate Body have--
       (A) given insufficient deference to the expertise and fact-
     finding of the Department of Commerce and the United States 
     International Trade Commission;
       (B) imposed an obligation concerning the causal 
     relationship between increased imports into the United States 
     and serious injury to domestic industry necessary to support 
     a safeguard measure that is different from the obligation set 
     forth in the applicable WTO Agreements;
       (C) imposed an obligation concerning the exclusion from 
     safeguards measures of products imported from countries party 
     to a free trade agreement that is different from the 
     obligation set forth in the applicable WTO Agreements;
       (D) imposed obligations on the Department of Commerce with 
     respect to the use of facts available in antidumping 
     investigations that are different from the obligations set 
     forth in the applicable WTO Agreements; and
       (E) accorded insufficient deference to the Department of 
     Commerce's methodology for adjusting countervailing duties 
     following the privatization of a subsidized foreign producer.

     SEC. 2102. TRADE NEGOTIATING OBJECTIVES.

       (a) Overall Trade Negotiating Objectives.--The overall 
     trade negotiating objectives of the United States for 
     agreements subject to the provisions of section 2103 are--
       (1) to obtain more open, equitable, and reciprocal market 
     access;
       (2) to obtain the reduction or elimination of barriers and 
     distortions that are directly related to trade and that 
     decrease market opportunities for United States exports or 
     otherwise distort United States trade;
       (3) to further strengthen the system of international 
     trading disciplines and procedures, including dispute 
     settlement;
       (4) to foster economic growth, raise living standards, and 
     promote full employment in the United States and to enhance 
     the global economy;
       (5) to ensure that trade and environmental policies are 
     mutually supportive and to seek to protect and preserve the 
     environment and enhance the international means of doing so, 
     while optimizing the use of the world's resources;
       (6) to promote respect for worker rights and the rights of 
     children consistent with core labor standards of the 
     International Labor Organization (as defined in section 
     2113(2)) and an understanding of the relationship between 
     trade and worker rights;
       (7) to seek provisions in trade agreements under which 
     parties to those agreements strive to ensure that they do not 
     weaken or reduce the protections afforded in domestic 
     environmental and labor laws as an encouragement for trade; 
     and
       (8) to ensure that trade agreements afford small businesses 
     equal access to international markets, equitable trade 
     benefits, expanded export market opportunities, and provide 
     for the reduction or elimination of trade barriers that 
     disproportionately impact small business.
       (b) Principal Trade Negotiating Objectives.--
       (1) Trade barriers and distortions.--The principal 
     negotiating objectives of the United States regarding trade 
     barriers and other trade distortions are--
       (A) to expand competitive market opportunities for United 
     States exports and to obtain fairer and more open conditions 
     of trade by reducing or eliminating tariff and nontariff 
     barriers and policies and practices of foreign governments 
     directly related to trade that decrease market opportunities 
     for United States exports or otherwise distort United States 
     trade; and
       (B) to obtain reciprocal tariff and nontariff barrier 
     elimination agreements, with particular attention to those 
     tariff categories covered in section 111(b) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3521(b)).
       (2) Trade in services.--The principal negotiating objective 
     of the United States regarding trade in services is to reduce 
     or eliminate barriers to international trade in services, 
     including regulatory and other barriers that deny national 
     treatment and market access or unreasonably restrict the 
     establishment or operations of service suppliers.
       (3) Foreign investment.--Recognizing that United States law 
     on the whole provides a high level of protection for 
     investment, consistent with or greater than the level 
     required by international law, the principal negotiating 
     objectives of the United States regarding foreign investment 
     are to reduce or eliminate artificial or trade-distorting 
     barriers to trade-related foreign investment, while ensuring 
     that United States investors in the United States are not 
     accorded lesser rights than foreign investors in the United 
     States, and to secure for investors important rights 
     comparable to those that would be available under United 
     States legal principles and practice, by--
       (A) reducing or eliminating exceptions to the principle of 
     national treatment;
       (B) freeing the transfer of funds relating to investments;
       (C) reducing or eliminating performance requirements, 
     forced technology transfers, and other unreasonable barriers 
     to the establishment and operation of investments;
       (D) seeking to establish standards for expropriation and 
     compensation for expropriation, consistent with United States 
     legal principles and practice;
       (E) seeking to establish standards for fair and equitable 
     treatment consistent with United States legal principles and 
     practice, including the principle of due process;
       (F) providing meaningful procedures for resolving 
     investment disputes;
       (G) seeking to improve mechanisms used to resolve disputes 
     between an investor and a government through--
       (i) mechanisms to eliminate frivolous claims and to deter 
     the filing of frivolous claims;
       (ii) procedures to ensure the efficient selection of 
     arbitrators and the expeditious disposition of claims;
       (iii) procedures to enhance opportunities for public input 
     into the formulation of government positions; and
       (iv) establishment of a single appellate body to review 
     decisions in investor-to-government disputes and thereby 
     provide coherence to the interpretations of investment 
     provisions in trade agreements; and
       (H) ensuring the fullest measure of transparency in the 
     dispute settlement mechanism, to the extent consistent with 
     the need to protect information that is classified or 
     business confidential, by--
       (i) ensuring that all requests for dispute settlement are 
     promptly made public;
       (ii) ensuring that--

       (I) all proceedings, submissions, findings, and decisions 
     are promptly made public;
       (II) all hearings are open to the public; and

       (iii) establishing a mechanism for acceptance of amicus 
     curiae submissions from businesses, unions, and 
     nongovernmental organizations.
       (4) Intellectual property.--The principal negotiating 
     objectives of the United States regarding trade-related 
     intellectual property are--
       (A) to further promote adequate and effective protection of 
     intellectual property rights, including through--
       (i)(I) ensuring accelerated and full implementation of the 
     Agreement on Trade-Related Aspects of Intellectual Property 
     Rights referred to in section 101(d)(1 5) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3511(d)(15)), particularly 
     with respect to meeting enforcement obligations under that 
     agreement; and
       (II) ensuring that the provisions of any multilateral or 
     bilateral trade agreement governing intellectual property 
     rights that is entered into by the United States reflect a 
     standard of protection similar to that found in United States 
     law;
       (ii) providing strong protection for new and emerging 
     technologies and new methods of transmitting and distributing 
     products embodying intellectual property;
       (iii) preventing or eliminating discrimination with respect 
     to matters affecting the availability, acquisition, scope, 
     maintenance, use, and enforcement of intellectual property 
     rights;
       (iv) ensuring that standards of protection and enforcement 
     keep pace with technological developments, and in particular 
     ensuring that rightholders have the legal and technological 
     means to control the use of their works through the Internet 
     and other global communication media, and to prevent the 
     unauthorized use of their works; and
       (v) providing strong enforcement of intellectual property 
     rights, including through accessible, expeditious, and 
     effective civil, administrative, and criminal enforcement 
     mechanisms; and
       (B) to secure fair, equitable, and nondiscriminatory market 
     access opportunities for United States persons that rely upon 
     intellectual property protection.
       (5) Transparency.--The principal negotiating objective of 
     the United States with respect to transparency is to obtain 
     wider and broader application of the principle of 
     transparency through--

[[Page S3676]]

       (A) increased and more timely public access to information 
     regarding trade issues and the activities of international 
     trade institutions;
       (B) increased openness at the WTO and other international 
     trade fora by increasing public access to appropriate 
     meetings, proceedings, and submissions, including with regard 
     to dispute settlement and investment; and
       (C) increased and more timely public access to all 
     notifications and supporting documentation submitted by 
     parties to the WTO.
       (6) Anti-corruption.--The principal negotiating objectives 
     of the United States with respect to the use of money or 
     other things of value to influence acts, decisions, or 
     omissions of foreign governments or officials or to secure 
     any improper advantage in a manner affecting trade are--
       (A) to obtain high standards and appropriate domestic 
     enforcement mechanisms applicable to persons from all 
     countries participating in the applicable trade agreement 
     that prohibit such attempts to influence acts, decisions, or 
     omissions of foreign governments; and
       (B) to ensure that such standards do not place United 
     States persons at a competitive disadvantage in international 
     trade.
       (7) Improvement of the wto and multilateral trade 
     agreements.--The principal negotiating objectives of the 
     United States regarding the improvement of the World Trade 
     Organization, the Uruguay Round Agreements, and other 
     multilateral and bilateral trade agreements are--
       (A) to achieve full implementation and extend the coverage 
     of the World Trade Organization and such agreements to 
     products, sectors, and conditions of trade not adequately 
     covered; and
       (B) to expand country participation in and enhancement of 
     the Information Technology Agreement and other trade 
     agreements.
       (8) Regulatory practices.--The principal negotiating 
     objectives of the United States regarding the use of 
     government regulation or other practices by foreign 
     governments to provide a competitive advantage to their 
     domestic producers, service providers, or investors and 
     thereby reduce market access for United States goods, 
     services, and investments are--
       (A) to achieve increased transparency and opportunity for 
     the participation of affected parties in the development of 
     regulations;
       (B) to require that proposed regulations be based on sound 
     science, cost-benefit analysis, risk assessment, or other 
     objective evidence;
       (C) to establish consultative mechanisms among parties to 
     trade agreements to promote increased transparency in 
     developing guidelines, rules, regulations, and laws for 
     government procurement and other regulatory regimes; and
       (D) to achieve the elimination of government measures such 
     as price controls and reference pricing which deny full 
     market access for United States products.
       (9) Electronic commerce.--The principal negotiating 
     objectives of the United States with respect to electronic 
     commerce are--
       (A) to ensure that current obligations, rules, disciplines, 
     and commitments under the World Trade Organization apply to 
     electronic commerce;
       (B) to ensure that--
       (i) electronically delivered goods and services receive no 
     less favorable treatment under trade rules and commitments 
     than like products delivered in physical form; and
       (ii) the classification of such goods and services ensures 
     the most liberal trade treatment possible;
       (C) to ensure that governments refrain from implementing 
     trade-related measures that impede electronic commerce;
       (D) where legitimate policy objectives require domestic 
     regulations that affect electronic commerce, to obtain 
     commitments that any such regulations are the least 
     restrictive on trade, nondiscriminatory, and transparent, and 
     promote an open market environment; and
       (E) to extend the moratorium of the World Trade 
     Organization on duties on electronic transmissions.
       (10) Reciprocal trade in agriculture.--
       (A) In general.--The principal negotiating objective of the 
     United States with respect to agriculture is to obtain 
     competitive opportunities for United States exports of 
     agricultural commodities in foreign markets substantially 
     equivalent to the competitive opportunities afforded foreign 
     exports in United States markets and to achieve fairer and 
     more open conditions of trade in bulk, specialty crop, and 
     value-added commodities by--
       (i) reducing or eliminating, by a date certain, tariffs or 
     other charges that decrease market opportunities for United 
     States exports--

       (I) giving priority to those products that are subject to 
     significantly higher tariffs or subsidy regimes of major 
     producing countries; and
       (II) providing reasonable adjustment periods for United 
     States import-sensitive products, in close consultation with 
     the Congress on such products before initiating tariff 
     reduction negotiations;

       (ii) reducing tariffs to levels that are the same as or 
     lower than those in the United States;
       (iii) seeking to eliminate all export subsidies on 
     agricultural commodities while maintaining bona fide food aid 
     and preserving United States agricultural market development 
     and export credit programs that allow the United States to 
     compete with other foreign export promotion efforts;
       (iv) allowing the preservation of programs that support 
     family farms and rural communities but do not distort trade;
       (v) developing disciplines for domestic support programs, 
     so that production that is in excess of domestic food 
     security needs is sold at world prices;
       (vi) eliminating Government policies that create price-
     depressing surpluses;
       (vii) eliminating state trading enterprises whenever 
     possible;
       (viii) developing, strengthening, and clarifying rules and 
     effective dispute settlement mechanisms to eliminate 
     practices that unfairly decrease United States market access 
     opportunities or distort agricultural markets to the 
     detriment of the United States, particularly with respect to 
     import-sensitive products, including--

       (I) unfair or trade-distorting activities of state trading 
     enterprises and other administrative mechanisms, with 
     emphasis on requiring price transparency in the operation of 
     state trading enterprises and such other mechanisms in order 
     to end cross subsidization, price discrimination, and price 
     undercutting;
       (II) unjustified trade restrictions or commercial 
     requirements, such as labeling, that affect new technologies, 
     including biotechnology;
       (III) unjustified sanitary or phytosanitary restrictions, 
     including those not based on scientific principles in 
     contravention of the Uruguay Round Agreements;
       (IV) other unjustified technical barriers to trade; and
       (V) restrictive rules in the administration of tariff rate 
     quotas;

       (ix) eliminating practices that adversely affect trade in 
     perishable or cyclical products, while improving import 
     relief mechanisms to recognize the unique characteristics of 
     perishable and cyclical agriculture;
       (x) ensuring that the use of import relief mechanisms for 
     perishable and cyclical agriculture are as accessible and 
     timely to growers in the United States as those mechanisms 
     that are used by other countries;
       (xi) taking into account whether a party to the 
     negotiations has failed to adhere to the provisions of 
     already existing trade agreements with the United States or 
     has circumvented obligations under those agreements;
       (xii) taking into account whether a product is subject to 
     market distortions by reason of a failure of a major 
     producing country to adhere to the provisions of already 
     existing trade agreements with the United States or by the 
     circumvention by that country of its obligations under those 
     agreements;
       (xiii) otherwise ensuring that countries that accede to the 
     World Trade Organization have made meaningful market 
     liberalization commitments in agriculture;
       (xiv) taking into account the impact that agreements 
     covering agriculture to which the United States is a party, 
     including the North American Free Trade Agreement, have on 
     the United States agricultural industry;
       (xv) maintaining bona fide food assistance programs and 
     preserving United States market development and export credit 
     programs; and
       (xvi) strive to complete a general multilateral round in 
     the World Trade Organization by January 1, 2005, and seek the 
     broadest market access possible in multilateral, regional, 
     and bilateral negotiations, recognizing the effect that 
     simultaneous sets of negotiations may have on United States 
     import-sensitive commodities (including those subject to 
     tariff-rate quotas).
       (B) Consultation.--
       (i) Before commencing negotiations.--Before commencing 
     negotiations with respect to agriculture, the United States 
     Trade Representative, in consultation with the Congress, 
     shall seek to develop a position on the treatment of seasonal 
     and perishable agricultural products to be employed in the 
     negotiations in order to develop an international consensus 
     on the treatment of seasonal or perishable agricultural 
     products in investigations relating to dumping and safeguards 
     and in any other relevant area.
       (ii) During negotiations.--During any negotiations on 
     agricultural subsidies, the United States Trade 
     Representative shall seek to establish the common base year 
     for calculating the Aggregated Measurement of Support (as 
     defined in the Agreement on Agriculture) as the end of each 
     country's Uruguay Round implementation period, as reported in 
     each country's Uruguay Round market access schedule.
       (iii) Scope of objective.--The negotiating objective 
     provided in subparagraph (A) applies with respect to 
     agricultural matters to be addressed in any trade agreement 
     entered into under section 2103 (a) or (b), including any 
     trade agreement entered into under section 2103 (a) or (b) 
     that provides for accession to a trade agreement to which the 
     United States is already a party, such as the North American 
     Free Trade Agreement and the United States-Canada Free Trade 
     Agreement.
       (11) Labor and the environment.--The principal negotiating 
     objectives of the United States with respect to labor and the 
     environment are--
       (A) to ensure that a party to a trade agreement with the 
     United States does not fail to effectively enforce its 
     environmental or labor laws, through a sustained or recurring 
     course of action or inaction, in a manner affecting trade 
     between the United States and

[[Page S3677]]

     that party after entry into force of a trade agreement 
     between those countries;
       (B) to recognize that parties to a trade agreement retain 
     the right to exercise discretion with respect to 
     investigatory, prosecutorial, regulatory, and compliance 
     matters and to make decisions regarding the allocation of 
     resources to enforcement with respect to other labor or 
     environmental matters determined to have higher priorities, 
     and to recognize that a country is effectively enforcing its 
     laws if a course of action or inaction reflects a reasonable 
     exercise of such discretion, or results from a bona fide 
     decision regarding the allocation of resources and no 
     retaliation may be authorized based on the exercise of these 
     rights or the right to establish domestic labor standards and 
     levels of environmental protection;
       (C) to strengthen the capacity of United States trading 
     partners to promote respect for core labor standards (as 
     defined in section 2113(2));
       (D) to strengthen the capacity of United States trading 
     partners to protect the environment through the promotion of 
     sustainable development;
       (E) to reduce or eliminate government practices or policies 
     that unduly threaten sustainable development;
       (F) to seek market access, through the elimination of 
     tariffs and nontariff barriers, for United States 
     environmental technologies, goods, and services; and
       (G) to ensure that labor, environmental, health, or safety 
     policies and practices of the parties to trade agreements 
     with the United States do not arbitrarily or unjustifiably 
     discriminate against United States exports or serve as 
     disguised barriers to trade.
       (12) Dispute settlement and enforcement.--The principal 
     negotiating objectives of the United States with respect to 
     dispute settlement and enforcement of trade agreements are--
       (A) to seek provisions in trade agreements providing for 
     resolution of disputes between governments under those trade 
     agreements in an effective, timely, transparent, equitable, 
     and reasoned manner, requiring determinations based on facts 
     and the principles of the agreements, with the goal of 
     increasing compliance with the agreements;
       (B) to seek to strengthen the capacity of the Trade Policy 
     Review Mechanism of the World Trade Organization to review 
     compliance with commitments;
       (C) to seek improved adherence by panels convened under the 
     WTO Understanding on Rules and Procedures Governing the 
     Settlement of Disputes and by the WTO Appellate Body to the 
     standard of review applicable under the WTO Agreement 
     involved in the dispute, including greater deference, where 
     appropriate, to the fact finding and technical expertise of 
     national investigating authorities;
       (D) to seek provisions encouraging the early identification 
     and settlement of disputes through consultation;
       (E) to seek provisions to encourage the provision of trade-
     expanding compensation if a party to a dispute under the 
     agreement does not come into compliance with its obligations 
     under the agreement;
       (F) to seek provisions to impose a penalty upon a party to 
     a dispute under the agreement that--
       (i) encourages compliance with the obligations of the 
     agreement;
       (ii) is appropriate to the parties, nature, subject matter, 
     and scope of the violation; and
       (iii) has the aim of not adversely affecting parties or 
     interests not party to the dispute while maintaining the 
     effectiveness of the enforcement mechanism; and
       (G) to seek provisions that treat United States principal 
     negotiating objectives equally with respect to--
       (i) the ability to resort to dispute settlement under the 
     applicable agreement;
       (ii) the availability of equivalent dispute settlement 
     procedures; and
       (iii) the availability of equivalent remedies.
       (13) Border taxes.--The principal negotiating objective of 
     the United States regarding border taxes is to obtain a 
     revision of the WTO rules with respect to the treatment of 
     border adjustments for internal taxes to redress the 
     disadvantage to countries relying primarily on direct taxes 
     for revenue rather than indirect taxes.
       (14) WTO extended negotiations.--The principal negotiating 
     objectives of the United States regarding trade in civil 
     aircraft are those set forth in section 135(c) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules 
     of origin are the conclusion of an agreement described in 
     section 132 of that Act (19 U.S.C. 3552).
       (c) Promotion of Certain Priorities.--In order to address 
     and maintain United States competitiveness in the global 
     economy, the President shall--
       (1) seek greater cooperation between the WTO and the ILO;
       (2) seek to establish consultative mechanisms among parties 
     to trade agreements to strengthen the capacity of United 
     States trading partners to promote respect for core labor 
     standards (as defined in section 2113(2)), and report to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate on the content and 
     operation of such mechanisms;
       (3) seek to establish consultative mechanisms among parties 
     to trade agreements to strengthen the capacity of United 
     States trading partners to develop and implement standards 
     for the protection of the environment and human health based 
     on sound science, and report to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate on the content and operation of such 
     mechanisms;
       (4) conduct environmental reviews of future trade and 
     investment agreements, consistent with Executive Order 13141 
     of November 16, 1999 and the relevant guidelines, and report 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate on 
     such reviews;
       (5) review the impact of future trade agreements on United 
     States employment, modeled after Executive Order 13141, and 
     report to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate on 
     such review;
       (6) take into account other legitimate United States 
     domestic objectives including, but not limited to, the 
     protection of legitimate health or safety, essential 
     security, and consumer interests and the law and regulations 
     related thereto;
       (7) have the Secretary of Labor consult with any country 
     seeking a trade agreement with the United States concerning 
     that country's labor laws and provide technical assistance to 
     that country if needed;
       (8) in connection with any trade negotiations entered into 
     under this Act, the President shall submit to the Committee 
     on Ways and Means of the House of Representatives and the 
     Committee on Finance of the Senate a meaningful labor rights 
     report of the country, or countries, with respect to which 
     the President is negotiating, on a time frame determined in 
     accordance with section 2107(b)(2)(E);
       (9)(A) preserve the ability of the United States to enforce 
     rigorously its trade laws, including the antidumping, 
     countervailing duty, and safeguard laws, and avoid agreements 
     that lessen the effectiveness of domestic and international 
     disciplines on unfair trade, especially dumping and 
     subsidies, or that lessen the effectiveness of domestic and 
     international safeguard provisions, in order to ensure that 
     United States workers, agricultural producers, and firms can 
     compete fully on fair terms and enjoy the benefits of 
     reciprocal trade concessions; and
       (B) address and remedy market distortions that lead to 
     dumping and subsidization, including overcapacity, 
     cartelization, and market-access barriers.
       (10) continue to promote consideration of multilateral 
     environmental agreements and consult with parties to such 
     agreements regarding the consistency of any such agreement 
     that includes trade measures with existing environmental 
     exceptions under Article XX of the GATT 1994;
       (11) report to the Committee on Ways and Means of the House 
     of Representatives and the Committee on Finance of the 
     Senate, not later than 12 months after the imposition of a 
     penalty or remedy by the United States permitted by a trade 
     agreement to which this title applies, on the effectiveness 
     of the penalty or remedy applied under United States law in 
     enforcing United States rights under the trade agreement; and
       (12) seek to establish consultative mechanisms among 
     parties to trade agreements to examine the trade consequences 
     of significant and unanticipated currency movements and to 
     scrutinize whether a foreign government engaged in a pattern 
     of manipulating its currency to promote a competitive 
     advantage in international trade.

     The report required under paragraph (11) shall address 
     whether the penalty or remedy was effective in changing the 
     behavior of the targeted party and whether the penalty or 
     remedy had any adverse impact on parties or interests not 
     party to the dispute.
       (d) Consultations.--
       (1) Consultations with congressional advisers.--In the 
     course of negotiations conducted under this title, the United 
     States Trade Representative shall consult closely and on a 
     timely basis with, and keep fully apprised of the 
     negotiations, the Congressional Oversight Group convened 
     under section 2107 and all committees of the House of 
     Representatives and the Senate with jurisdiction over laws 
     that would be affected by a trade agreement resulting from 
     the negotiations.
       (2) Consultation before agreement initialed.--In the course 
     of negotiations conducted under this title, the United States 
     Trade Representative shall--
       (A) consult closely and on a timely basis (including 
     immediately before initialing an agreement) with, and keep 
     fully apprised of the negotiations, the congressional 
     advisers for trade policy and negotiations appointed under 
     section 161 of the Trade Act of 1974 (19 U.S.C. 2211), the 
     Committee on Ways and Means of the House of Representatives, 
     the Committee on Finance of the Senate, and the Congressional 
     Oversight Group convened under section 2107; and
       (B) with regard to any negotiations and agreement relating 
     to agricultural trade, also consult closely and on a timely 
     basis (including immediately before initialing an agreement) 
     with, and keep fully apprised of the negotiations, the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       (e) Adherence to Obligations Under Uruguay Round 
     Agreements.--In determining

[[Page S3678]]

     whether to enter into negotiations with a particular country, 
     the President shall take into account the extent to which 
     that country has implemented, or has accelerated the 
     implementation of, its obligations under the Uruguay Round 
     Agreements.

     SEC. 2103. TRADE AGREEMENTS AUTHORITY.

       (a) Agreements Regarding Tariff Barriers.--
       (1) In general.--Whenever the President determines that one 
     or more existing duties or other import restrictions of any 
     foreign country or the United States are unduly burdening and 
     restricting the foreign trade of the United States and that 
     the purposes, policies, priorities, and objectives of this 
     title will be promoted thereby, the President--
       (A) may enter into trade agreements with foreign countries 
     before--
       (i) June 1, 2005; or
       (ii) June 1, 2007, if trade authorities procedures are 
     extended under subsection (c); and
       (B) may, subject to paragraphs (2) and (3), proclaim--
       (i) such modification or continuance of any existing duty,
       (ii) such continuance of existing duty-free or excise 
     treatment, or
       (iii) such additional duties,
     as the President determines to be required or appropriate to 
     carry out any such trade agreement.

     The President shall notify the Congress of the President's 
     intention to enter into an agreement under this subsection.
       (2) Limitations.--No proclamation may be made under 
     paragraph (1) that--
       (A) reduces any rate of duty (other than a rate of duty 
     that does not exceed 5 percent ad valorem on the date of the 
     enactment of this Act) to a rate of duty which is less than 
     50 percent of the rate of such duty that applies on such date 
     of enactment;
       (B) reduces the rate of duty below that applicable under 
     the Uruguay Round Agreements, on any import sensitive 
     agricultural product; or
       (C) increases any rate of duty above the rate that applied 
     on the date of the enactment of this Act.
       (3) Aggregate reduction; exemption from staging.--
       (A) Aggregate reduction.--Except as provided in 
     subparagraph (B), the aggregate reduction in the rate of duty 
     on any article which is in effect on any day pursuant to a 
     trade agreement entered into under paragraph (1) shall not 
     exceed the aggregate reduction which would have been in 
     effect on such day if--
       (i) a reduction of 3 percent ad valorem or a reduction of 
     one-tenth of the total reduction, whichever is greater, had 
     taken effect on the effective date of the first reduction 
     proclaimed under paragraph (1) to carry out such agreement 
     with respect to such article; and
       (ii) a reduction equal to the amount applicable under 
     clause (i) had taken effect at 1-year intervals after the 
     effective date of such first reduction.
       (B) Exemption from staging.--No staging is required under 
     subparagraph (A) with respect to a duty reduction that is 
     proclaimed under paragraph (1) for an article of a kind that 
     is not produced in the United States. The United States 
     International Trade Commission shall advise the President of 
     the identity of articles that may be exempted from staging 
     under this subparagraph.
       (4) Rounding.--If the President determines that such action 
     will simplify the computation of reductions under paragraph 
     (3), the President may round an annual reduction by an amount 
     equal to the lesser of--
       (A) the difference between the reduction without regard to 
     this paragraph and the next lower whole number; or
       (B) one-half of 1 percent ad valorem.
       (5) Other limitations.--A rate of duty reduction that may 
     not be proclaimed by reason of paragraph (2) may take effect 
     only if a provision authorizing such reduction is included 
     within an implementing bill provided for under section 2105 
     and that bill is enacted into law.
       (6) Other tariff modifications.--Notwithstanding paragraphs 
     (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to 
     the consultation and layover requirements of section 115 of 
     the Uruguay Round Agreements Act, the President may proclaim 
     the modification of any duty or staged rate reduction of any 
     duty set forth in Schedule XX, as defined in section 2102(5) 
     of that Act, if the United States agrees to such modification 
     or staged rate reduction in a negotiation for the reciprocal 
     elimination or harmonization of duties under the auspices of 
     the World Trade Organization.
       (7) Authority under uruguay round agreements act not 
     affected.--Nothing in this subsection shall limit the 
     authority provided to the President under section 111(b) of 
     the Uruguay Round Agreements Act (19 U.S.C. 3521(b)).
       (b) Agreements Regarding Tariff and Nontariff Barriers.--
       (1) In general.--
       (A) Determination by president.--Whenever the President 
     determines that--
       (i) one or more existing duties or any other import 
     restriction of any foreign country or the United States or 
     any other barrier to, or other distortion of, international 
     trade unduly burdens or restricts the foreign trade of the 
     United States or adversely affects the United States economy; 
     or
       (ii) the imposition of any such barrier or distortion is 
     likely to result in such a burden, restriction, or effect;

     and that the purposes, policies, priorities, and objectives 
     of this title will be promoted thereby, the President may 
     enter into a trade agreement described in subparagraph (B) 
     during the period described in subparagraph (C).
       (B) Agreement to reduce or eliminate certain distortion.--
     The President may enter into a trade agreement under 
     subparagraph (A) with foreign countries providing for--
       (i) the reduction or elimination of a duty, restriction, 
     barrier, or other distortion described in subparagraph (A), 
     or
       (ii) the prohibition of, or limitation on the imposition 
     of, such barrier or other distortion.
       (C) Time period.--The President may enter into a trade 
     agreement under this paragraph before--
       (i) June 1, 2005; or
       (ii) June 1, 2007, if trade authorities procedures are 
     extended under subsection (c).
       (2) Conditions.--A trade agreement may be entered into 
     under this subsection only if such agreement makes progress 
     in meeting the applicable objectives described in section 
     2102 (a) and (b) and the President satisfies the conditions 
     set forth in section 2104.
       (3) Bills qualifying for trade authorities procedures.--
       (A) Application of expedited procedures.--The provisions of 
     section 151 of the Trade Act of 1974 (in this title referred 
     to as ``trade authorities procedures'') apply to a bill of 
     either House of Congress which contains provisions described 
     in subparagraph (B) to the same extent as such section 151 
     applies to implementing bills under that section. A bill to 
     which this paragraph applies shall hereafter in this title be 
     referred to as an ``implementing bill''.
       (B) Provisions described.--The provisions referred to in 
     subparagraph (A) are--
       (i) a provision approving a trade agreement entered into 
     under this subsection and approving the statement of 
     administrative action, if any, proposed to implement such 
     trade agreement; and
       (ii) if changes in existing laws or new statutory authority 
     are required to implement such trade agreement or agreements, 
     provisions, necessary or appropriate to implement such trade 
     agreement or agreements, either repealing or amending 
     existing laws or providing new statutory authority.
       (c) Extension Disapproval Process for Congressional Trade 
     Authorities Procedures.--
       (1) In general.--Except as provided in section 2105(b)--
       (A) the trade authorities procedures apply to implementing 
     bills submitted with respect to trade agreements entered into 
     under subsection (b) before July 1, 2005; and
       (B) the trade authorities procedures shall be extended to 
     implementing bills submitted with respect to trade agreements 
     entered into under subsection (b) after June 30, 2005, and 
     before July 1, 2007, if (and only if)--
       (i) the President requests such extension under paragraph 
     (2); and
       (ii) neither House of the Congress adopts an extension 
     disapproval resolution under paragraph (5) before June 1, 
     2005.
       (2) Report to congress by the president.--If the President 
     is of the opinion that the trade authorities procedures 
     should be extended to implementing bills described in 
     paragraph (1)(B), the President shall submit to the Congress, 
     not later than March 1, 2005, a written report that contains 
     a request for such extension, together with--
       (A) a description of all trade agreements that have been 
     negotiated under subsection (b) and the anticipated schedule 
     for submitting such agreements to the Congress for approval;
       (B) a description of the progress that has been made in 
     negotiations to achieve the purposes, policies, priorities, 
     and objectives of this title, and a statement that such 
     progress justifies the continuation of negotiations; and
       (C) a statement of the reasons why the extension is needed 
     to complete the negotiations.
       (3) Other reports to congress.--
       (A) Report by the advisory committee.--The President shall 
     promptly inform the Advisory Committee for Trade Policy and 
     Negotiations established under section 135 of the Trade Act 
     of 1974 (19 U.S.C. 2155) of the President's decision to 
     submit a report to the Congress under paragraph (2). The 
     Advisory Committee shall submit to the Congress as soon as 
     practicable, but not later than May 1, 2005, a written report 
     that contains--
       (i) its views regarding the progress that has been made in 
     negotiations to achieve the purposes, policies, priorities, 
     and objectives of this title; and
       (ii) a statement of its views, and the reasons therefor, 
     regarding whether the extension requested under paragraph (2) 
     should be approved or disapproved.
       (B) Report by itc.--The President shall promptly inform the 
     International Trade Commission of the President's decision to 
     submit a report to the Congress under paragraph (2). The 
     International Trade Commission shall submit to the Congress 
     as soon as practicable, but not later than May 1, 2005, a 
     written report that contains a review and analysis of the 
     economic impact on the United States of all trade agreements 
     implemented between the date of enactment of this Act and the 
     date on which the President decides to seek an extension 
     requested under paragraph (2).

[[Page S3679]]

       (4) Status of reports.--The reports submitted to the 
     Congress under paragraphs (2) and (3), or any portion of such 
     reports, may be classified to the extent the President 
     determines appropriate.
       (5) Extension disapproval resolutions.--
       (A) Definition.--For purposes of paragraph (1), the term 
     ``extension disapproval resolution'' means a resolution of 
     either House of the Congress, the sole matter after the 
     resolving clause of which is as follows: ``That the 
     __________ disapproves the request of the President for the 
     extension, under section 2103(c)(1)(B)(i) of the Bipartisan 
     Trade Promotion Authority Act of 2002, of the trade 
     authorities procedures under that Act to any implementing 
     bill submitted with respect to any trade agreement entered 
     into under section 2103(b) of that Act after June 30, 
     2005.'', with the blank space being filled with the name of 
     the resolving House of the Congress.
       (B) Introduction.--Extension disapproval resolutions--
       (i) may be introduced in either House of the Congress by 
     any member of such House; and
       (ii) shall be referred, in the House of Representatives, to 
     the Committee on Ways and Means and, in addition, to the 
     Committee on Rules.
       (C) Application of section 152 of the trade act of 1974.--
     The provisions of section 152 (d) and (e) of the Trade Act of 
     1974 (19 U.S.C. 2192 (d) and (e)) (relating to the floor 
     consideration of certain resolutions in the House and Senate) 
     apply to extension disapproval resolutions.
       (D) Limitations.--It is not in order for--
       (i) the Senate to consider any extension disapproval 
     resolution not reported by the Committee on Finance;
       (ii) the House of Representatives to consider any extension 
     disapproval resolution not reported by the Committee on Ways 
     and Means and, in addition, by the Committee on Rules; or
       (iii) either House of the Congress to consider an extension 
     disapproval resolution after June 30, 2005.
       (d) Commencement of Negotiations.--In order to contribute 
     to the continued economic expansion of the United States, the 
     President shall commence negotiations covering tariff and 
     nontariff barriers affecting any industry, product, or 
     service sector, and expand existing sectoral agreements to 
     countries that are not parties to those agreements, in cases 
     where the President determines that such negotiations are 
     feasible and timely and would benefit the United States. Such 
     sectors include agriculture, commercial services, 
     intellectual property rights, industrial and capital goods, 
     government procurement, information technology products, 
     environmental technology and services, medical equipment and 
     services, civil aircraft, and infrastructure products. In so 
     doing, the President shall take into account all of the 
     principal negotiating objectives set forth in section 
     2102(b).

     SEC. 2104. CONSULTATIONS AND ASSESSMENT.

       (a) Notice and Consultation Before Negotiation.--The 
     President, with respect to any agreement that is subject to 
     the provisions of section 2103(b), shall--
       (1) provide, at least 90 calendar days before initiating 
     negotiations, written notice to the Congress of the 
     President's intention to enter into the negotiations and set 
     forth therein the date the President intends to initiate such 
     negotiations, the specific United States objectives for the 
     negotiations, and whether the President intends to seek an 
     agreement, or changes to an existing agreement;
       (2) before and after submission of the notice, consult 
     regarding the negotiations with the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives, such other committees of the House and 
     Senate as the President deems appropriate, and the 
     Congressional Oversight group convened under section 2107; 
     and
       (3) upon the request of a majority of the members of the 
     Congressional Oversight Group under section 2107(c), meet 
     with the Congressional Oversight Group before initiating the 
     negotiations or at any other time concerning the 
     negotiations.
       (b) Negotiations Regarding Agriculture and Fishing 
     Industry.--
       (1) In general.--Before initiating or continuing 
     negotiations the subject matter of which is directly related 
     to the subject matter under section 2102(b)(10)(A)(i) with 
     any country, the President shall assess whether United States 
     tariffs on agricultural products that were bound under the 
     Uruguay Round Agreements are lower than the tariffs bound by 
     that country. In addition, the President shall consider 
     whether the tariff levels bound and applied throughout the 
     world with respect to imports from the United States are 
     higher than United States tariffs and whether the negotiation 
     provides an opportunity to address any such disparity. The 
     President shall consult with the Committee on Ways and Means 
     and the Committee on Agriculture of the House of 
     Representatives and the Committee on Finance and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate concerning the results of the assessment, whether it 
     is appropriate for the United States to agree to further 
     tariff reductions based on the conclusions reached in the 
     assessment, and how all applicable negotiating objectives 
     will be met.
       (2) Special consultations on import sensitive products.--
       (A) In general.--Before initiating negotiations with regard 
     to agriculture, and, with respect to the Free Trade Area for 
     the Americas and negotiations with regard to agriculture 
     under the auspices of the World Trade Organization, as soon 
     as practicable after the enactment of this Act, the United 
     States Trade Representative shall--
       (i) identify those agricultural products subject to tariff-
     rate quotas on the date of enactment of this Act, and 
     agricultural products subject to tariff reductions by the 
     United States as a result of the Uruguay Round Agreements, 
     for which the rate of duty was reduced on January 1, 1995, to 
     a rate which was not less than 97.5 percent of the rate of 
     duty that applied to such article on December 31, 1994;
       (ii) consult with the Committee on Ways and Means and the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Finance and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate concerning--

       (I) whether any further tariff reductions on the products 
     identified under clause (i) should be appropriate, taking 
     into account the impact of any such tariff reduction on the 
     United States industry producing the product concerned;
       (II) whether the products so identified face unjustified 
     sanitary or phytosanitary restrictions, including those not 
     based on scientific principles in contravention of the 
     Uruguay Round Agreements; and
       (III) whether the countries participating in the 
     negotiations maintain export subsidies or other programs, 
     policies, or practices that distort world trade in such 
     products and the impact of such programs, policies, and 
     practices on United States producers of the products;

       (iii) request that the International Trade Commission 
     prepare an assessment of the probable economic effects of any 
     such tariff reduction on the United States industry producing 
     the product concerned and on the United States economy as a 
     whole; and
       (iv) upon complying with clauses (i), (ii), and (iii), 
     notify the Committee on Ways and Means and the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Finance and the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate of those products identified under 
     clause (i) for which the Trade Representative intends to seek 
     tariff liberalization in the negotiations and the reasons for 
     seeking such tariff liberalization.
       (B) Identification of additional agricultural products.--
     If, after negotiations described in subparagraph (A) are 
     commenced--
       (i) the United States Trade Representative identifies any 
     additional agricultural product described in subparagraph 
     (A)(i) for tariff reductions which were not the subject of a 
     notification under subparagraph (A)(iv), or
       (ii) any additional agricultural product described in 
     subparagraph (A)(i) is the subject of a request for tariff 
     reductions by a party to the negotiations,

     the Trade Representative shall, as soon as practicable, 
     notify the committees referred to in subparagraph (A)(iv) of 
     those products and the reasons for seeking such tariff 
     reductions.
       (3) Negotiations regarding the fishing industry.--Before 
     initiating, or continuing, negotiations which directly relate 
     to fish or shellfish trade with any country, the President 
     shall consult with the Committee on Ways and Means and the 
     Committee on Resources of the House of Representatives, and 
     the Committee on Finance and the Committee on Commerce, 
     Science, and Transportation of the Senate, and shall keep the 
     Committees apprised of negotiations on an ongoing and timely 
     basis.
       (c) Negotiations Regarding Textiles.--Before initiating or 
     continuing negotiations the subject matter of which is 
     directly related to textiles and apparel products with any 
     country, the President shall assess whether United States 
     tariffs on textile and apparel products that were bound under 
     the Uruguay Round Agreements are lower than the tariffs bound 
     by that country and whether the negotiation provides an 
     opportunity to address any such disparity. The President 
     shall consult with the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate concerning the results of the assessment, whether it 
     is appropriate for the United States to agree to further 
     tariff reductions based on the conclusions reached in the 
     assessment, and how all applicable negotiating objectives 
     will be met.
       (d) Consultation With Congress Before Agreements Entered 
     Into.--
       (1) Consultation.--Before entering into any trade agreement 
     under section 2103(b), the President shall consult with--
       (A) the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate;
       (B) each other committee of the House and the Senate, and 
     each joint committee of the Congress, which has jurisdiction 
     over legislation involving subject matters which would be 
     affected by the trade agreement; and
       (C) the Congressional Oversight Group convened under 
     section 2107.
       (2) Scope.--The consultation described in paragraph (1) 
     shall include consultation with respect to--
       (A) the nature of the agreement;
       (B) how and to what extent the agreement will achieve the 
     applicable purposes, policies, priorities, and objectives of 
     this title; and

[[Page S3680]]

       (C) the implementation of the agreement under section 2105, 
     including the general effect of the agreement on existing 
     laws.
       (3) Report regarding united states trade remedy laws.--
       (A) Changes in certain trade laws.--The President, at least 
     90 calendar days before the day on which the President enters 
     into a trade agreement, shall notify the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate in writing of any amendments to 
     title VII of the Tariff Act of 1930 or chapter 1 of title II 
     of the Trade Act of 1974 that the President proposes to 
     include in a bill implementing such trade agreement.
       (B) Explanation.--On the date that the President transmits 
     the notification, the President also shall transmit to the 
     Committees a report explaining--
       (i) the President's reasons for believing that amendments 
     to title VII of the Tariff Act of 1930 or to chapter 1 of 
     title II of the Trade Act of 1974 are necessary to implement 
     the trade agreement; and
       (ii) the President's reasons for believing that such 
     amendments are consistent with the purposes, policies, and 
     objectives described in section 2102(c)(9).
       (C) Report to house.--Not later than 60 calendar days after 
     the date on which the President transmits the notification 
     described in subparagraph (A), the Chairman and ranking 
     member of the Ways and Means Committee of the House of 
     Representatives, based on consultations with the members of 
     that Committee, shall issue to the House of Representatives a 
     report stating whether the proposed amendments described in 
     the President's notification are consistent with the 
     purposes, policies, and objectives described in section 
     2102(c)(9). In the event that the Chairman and ranking member 
     disagree with respect to one or more conclusions, the report 
     shall contain the separate views of the Chairman and ranking 
     member.
       (D) Report to senate.--Not later than 60 calendar days 
     after the date on which the President transmits the 
     notification described in subparagraph (A), the Chairman and 
     ranking member of the Finance Committee of the Senate, based 
     on consultations with the members of that Committee, shall 
     issue to the Senate a report stating whether the proposed 
     amendments described in the President's report are consistent 
     with the purposes, policies, and objectives described in 
     section 2102(c)(9). In the event that the Chairman and 
     ranking member disagree with respect to one or more 
     conclusions, the report shall contain the separate views of 
     the Chairman and ranking member.
       (e) Advisory Committee Reports.--The report required under 
     section 135(e)(1) of the Trade Act of 1974 regarding any 
     trade agreement entered into under section 2103 (a) or (b) of 
     this title shall be provided to the President, the Congress, 
     and the United States Trade Representative not later than 30 
     days after the date on which the President notifies the 
     Congress under section 2103(a)(1) or 2105(a)(1)(A) of the 
     President's intention to enter into the agreement.
       (f) ITC Assessment.--
       (1) In general.--The President, at least 90 calendar days 
     before the day on which the President enters into a trade 
     agreement under section 2103(b), shall provide the 
     International Trade Commission (referred to in this 
     subsection as ``the Commission'') with the details of the 
     agreement as it exists at that time and request the 
     Commission to prepare and submit an assessment of the 
     agreement as described in paragraph (2). Between the time the 
     President makes the request under this paragraph and the time 
     the Commission submits the assessment, the President shall 
     keep the Commission current with respect to the details of 
     the agreement.
       (2) ITC assessment.--Not later than 90 calendar days after 
     the President enters into the agreement, the Commission shall 
     submit to the President and the Congress a report assessing 
     the likely impact of the agreement on the United States 
     economy as a whole and on specific industry sectors, 
     including the impact the agreement will have on the gross 
     domestic product, exports and imports, aggregate employment 
     and employment opportunities, the production, employment, and 
     competitive position of industries likely to be significantly 
     affected by the agreement, and the interests of United States 
     consumers.
       (3) Review of empirical literature.--In preparing the 
     assessment, the Commission shall review available economic 
     assessments regarding the agreement, including literature 
     regarding any substantially equivalent proposed agreement, 
     and shall provide in its assessment a description of the 
     analyses used and conclusions drawn in such literature, and a 
     discussion of areas of consensus and divergence between the 
     various analyses and conclusions, including those of the 
     Commission regarding the agreement.

     SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.

       (a) In General.--
       (1) Notification and submission.--Any agreement entered 
     into under section 2103(b) shall enter into force with 
     respect to the United States if (and only if)--
       (A) the President, at least 90 calendar days before the day 
     on which the President enters into an agreement--
       (i) notifies the House of Representatives and the Senate of 
     the President's intention to enter into the agreement, and 
     promptly thereafter publishes notice of such intention in the 
     Federal Register; and
       (ii) transmits to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate the notification and report described in section 
     2104(d)(3) (A) and (B);
       (B) within 60 days after entering into the agreement, the 
     President submits to the Congress a description of those 
     changes to existing laws that the President considers would 
     be required in order to bring the United States into 
     compliance with the agreement;
       (C) after entering into the agreement, the President 
     submits to the Congress, on a day on which both Houses of 
     Congress are in session, a copy of the final legal text of 
     the agreement, together with--
       (i) a draft of an implementing bill described in section 
     2103(b)(3);
       (ii) a statement of any administrative action proposed to 
     implement the trade agreement; and
       (iii) the supporting information described in paragraph 
     (2); and
       (D) the implementing bill is enacted into law.
       (2) Supporting information.--The supporting information 
     required under paragraph (1)(C)(iii) consists of--
       (A) an explanation as to how the implementing bill and 
     proposed administrative action will change or affect existing 
     law; and
       (B) a statement--
       (i) asserting that the agreement makes progress in 
     achieving the applicable purposes, policies, priorities, and 
     objectives of this title; and
       (ii) setting forth the reasons of the President regarding--

       (I) how and to what extent the agreement makes progress in 
     achieving the applicable purposes, policies, and objectives 
     referred to in clause (i);
       (II) whether and how the agreement changes provisions of an 
     agreement previously negotiated;
       (III) how the agreement serves the interests of United 
     States commerce;
       (IV) how the implementing bill meets the standards set 
     forth in section 2103(b)(3);
       (V) how and to what extent the agreement makes progress in 
     achieving the applicable purposes, policies, and objectives 
     referred to in section 2102(c) regarding the promotion of 
     certain priorities; and
       (VI) in the event that the reports described in section 
     2104(b)(3) (C) and (D) contain any findings that the proposed 
     amendments are inconsistent with the purposes, policies, and 
     objectives described in section 2102(c)(9), an explanation as 
     to why the President believes such findings to be incorrect.

       (3) Reciprocal benefits.--In order to ensure that a foreign 
     country that is not a party to a trade agreement entered into 
     under section 2103(b) does not receive benefits under the 
     agreement unless the country is also subject to the 
     obligations under the agreement, the implementing bill 
     submitted with respect to the agreement shall provide that 
     the benefits and obligations under the agreement apply only 
     to the parties to the agreement, if such application is 
     consistent with the terms of the agreement. The implementing 
     bill may also provide that the benefits and obligations under 
     the agreement do not apply uniformly to all parties to the 
     agreement, if such application is consistent with the terms 
     of the agreement.
       (4) Disclosure of commitments.--Any agreement or other 
     understanding with a foreign government or governments 
     (whether oral or in writing) that--
       (A) relates to a trade agreement with respect to which 
     Congress enacts implementing legislation under trade 
     authorities procedures, and
       (B) is not disclosed to Congress before legislation 
     implementing that agreement is introduced in either House of 
     Congress,
     shall not be considered to be part of the agreement approved 
     by Congress and shall have no force and effect under United 
     States law or in any dispute settlement body.
       (b) Limitations on Trade Authorities Procedures.--
       (1) For lack of notice or consultations.--
       (A) In general.--The trade authorities procedures shall not 
     apply to any implementing bill submitted with respect to a 
     trade agreement or trade agreements entered into under 
     section 2103(b) if during the 60-day period beginning on the 
     date that one House of Congress agrees to a procedural 
     disapproval resolution for lack of notice or consultations 
     with respect to such trade agreement or agreements, the other 
     House separately agrees to a procedural disapproval 
     resolution with respect to such trade agreement or 
     agreements.
       (B) Procedural disapproval resolution.--(i) For purposes of 
     this paragraph, the term ``procedural disapproval 
     resolution'' means a resolution of either House of Congress, 
     the sole matter after the resolving clause of which is as 
     follows: ``That the President has failed or refused to notify 
     or consult in accordance with the Bipartisan Trade Promotion 
     Authority Act of 2002 on negotiations with respect to 
     ____________ and, therefore, the trade authorities procedures 
     under that Act shall not apply to any implementing bill 
     submitted with respect to such trade agreement or 
     agreements.'', with the blank space being filled with a 
     description of the trade agreement or agreements with respect 
     to which the President is considered to have failed or 
     refused to notify or consult.
       (ii) For purposes of clause (i), the President has ``failed 
     or refused to notify or consult in

[[Page S3681]]

     accordance with the Bipartisan Trade Promotion Authority Act 
     of 2002'' on negotiations with respect to a trade agreement 
     or trade agreements if--
       (I) the President has failed or refused to consult (as the 
     case may be) in accordance with section 2104 or 2105 with 
     respect to the negotiations, agreement, or agreements;
       (II) guidelines under section 2107(b) have not been 
     developed or met with respect to the negotiations, agreement, 
     or agreements;
       (III) the President has not met with the Congressional 
     Oversight Group pursuant to a request made under section 
     2107(c) with respect to the negotiations, agreement, or 
     agreements; or
       (IV) the agreement or agreements fail to make progress in 
     achieving the purposes, policies, priorities, and objectives 
     of this title.
       (C) Procedures for considering resolutions.--(i) Procedural 
     disapproval resolutions--
       (I) in the House of Representatives--

       (aa) may be introduced by any Member of the House;
       (bb) shall be referred to the Committee on Ways and Means 
     and, in addition, to the Committee on Rules; and
       (cc) may not be amended by either Committee; and

       (II) in the Senate--

       (aa) may be introduced by any Member of the Senate.
       (bb) shall be referred to the Committee on Finance; and
       (cc) may not be amended.

       (ii) The provisions of section 152 (d) and (e) of the Trade 
     Act of 1974 (19 U.S.C. 2192 (d) and (e)) (relating to the 
     floor consideration of certain resolutions in the House and 
     Senate) apply to a procedural disapproval resolution 
     introduced with respect to a trade agreement if no other 
     procedural disapproval resolution with respect to that trade 
     agreement has previously been considered under such 
     provisions of section 152 of the Trade Act of 1974 in that 
     House of Congress during that Congress.
       (iii) It is not in order for the House of Representatives 
     to consider any procedural disapproval resolution not 
     reported by the Committee on Ways and Means and, in addition, 
     by the Committee on Rules.
       (iv) It is not in order for the Senate to consider any 
     procedural disapproval resolution not reported by the 
     Committee on Finance.
       (2) For failure to meet other requirements.--Prior to 
     December 31, 2002, the Secretary of Commerce shall transmit 
     to Congress a report setting forth the strategy of the United 
     States for correcting instances in which dispute settlement 
     panels and the Appellate Body of the WTO have added to 
     obligations or diminished rights of the United States, as 
     described in section 2101(b)(3). Trade authorities procedures 
     shall not apply to any implementing bill with respect to an 
     agreement negotiated under the auspices of the WTO, unless 
     the Secretary of Commerce has issued such report in a timely 
     manner.
       (c) Rules of House of Representatives and Senate.--
     Subsection (b) of this section and section 2103(c) are 
     enacted by the Congress--
       (1) as an exercise of the rulemaking power of the House of 
     Representatives and the Senate, respectively, and as such are 
     deemed a part of the rules of each House, respectively, and 
     such procedures supersede other rules only to the extent that 
     they are inconsistent with such other rules; and
       (2) with the full recognition of the constitutional right 
     of either House to change the rules (so far as relating to 
     the procedures of that House) at any time, in the same 
     manner, and to the same extent as any other rule of that 
     House.

     SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH 
                   NEGOTIATIONS HAVE ALREADY BEGUN.

       (a) Certain Agreements.--Notwithstanding the prenegotiation 
     notification and consultation requirement described in 
     section 2104(a), if an agreement to which section 2103(b) 
     applies--
       (1) is entered into under the auspices of the World Trade 
     Organization,
       (2) is entered into with Chile,
       (3) is entered into with Singapore, or
       (4) establishes a Free Trade Area for the Americas,

     and results from negotiations that were commenced before the 
     date of the enactment of this Act, subsection (b) shall 
     apply.
       (b) Treatment of Agreements.--In the case of any agreement 
     to which subsection (a) applies--
       (1) the applicability of the trade authorities procedures 
     to implementing bills shall be determined without regard to 
     the requirements of section 2104(a) (relating only to 90 days 
     notice prior to initiating negotiations), and any procedural 
     disapproval resolution under section 2105(b)(1)(B) shall not 
     be in order on the basis of a failure or refusal to comply 
     with the provisions of section 2104(a); and
       (2) the President shall, as soon as feasible after the 
     enactment of this Act--
       (A) notify the Congress of the negotiations described in 
     subsection (a), the specific United States objectives in the 
     negotiations, and whether the President is seeking a new 
     agreement or changes to an existing agreement; and
       (B) before and after submission of the notice, consult 
     regarding the negotiations with the committees referred to in 
     section 2104(a)(2) and the Congressional Oversight Group.

     SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.

       (a) Members and Functions.--
       (1) In general.--By not later than 60 days after the date 
     of the enactment of this Act, and not later than 30 days 
     after the convening of each Congress, the chairman of the 
     Committee on Ways and Means of the House of Representatives 
     and the chairman of the Committee on Finance of the Senate 
     shall convene the Congressional Oversight Group.
       (2) Membership from the house.--In each Congress, the 
     Congressional Oversight Group shall be comprised of the 
     following Members of the House of Representatives:
       (A) The chairman and ranking member of the Committee on 
     Ways and Means, and 3 additional members of such Committee 
     (not more than 2 of whom are members of the same political 
     party).
       (B) The chairman and ranking member, or their designees, of 
     the committees of the House of Representatives which would 
     have, under the Rules of the House of Representatives, 
     jurisdiction over provisions of law affected by a trade 
     agreement negotiations for which are conducted at any time 
     during that Congress and to which this title would apply.
       (3) Membership from the senate.--In each Congress, the 
     Congressional Oversight Group shall also be comprised of the 
     following members of the Senate:
       (A) The chairman and ranking Member of the Committee on 
     Finance and 3 additional members of such Committee (not more 
     than 2 of whom are members of the same political party).
       (B) The chairman and ranking member, or their designees, of 
     the committees of the Senate which would have, under the 
     Rules of the Senate, jurisdiction over provisions of law 
     affected by a trade agreement negotiations for which are 
     conducted at any time during that Congress and to which this 
     title would apply.
       (4) Accreditation.--Each member of the Congressional 
     Oversight Group described in paragraph (2)(A) and (3)(A) 
     shall be accredited by the United States Trade Representative 
     on behalf of the President as official advisers to the United 
     States delegation in negotiations for any trade agreement to 
     which this title applies. Each member of the Congressional 
     Oversight Group described in paragraph (2)(B) and (3)(B) 
     shall be accredited by the United States Trade Representative 
     on behalf of the President as official advisers to the United 
     States delegation in the negotiations by reason of which the 
     member is in the Congressional Oversight Group. The 
     Congressional Oversight Group shall consult with and provide 
     advice to the Trade Representative regarding the formulation 
     of specific objectives, negotiating strategies and positions, 
     the development of the applicable trade agreement, and 
     compliance and enforcement of the negotiated commitments 
     under the trade agreement.
       (5) Chair.--The Congressional Oversight Group shall be 
     chaired by the Chairman of the Committee on Ways and Means of 
     the House of Representatives and the Chairman of the 
     Committee on Finance of the Senate.
       (b) Guidelines.--
       (1) Purpose and revision.--The United States Trade 
     Representative, in consultation with the chairmen and ranking 
     minority members of the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate--
       (A) shall, within 120 days after the date of the enactment 
     of this Act, develop written guidelines to facilitate the 
     useful and timely exchange of information between the Trade 
     Representative and the Congressional Oversight Group 
     established under this section; and
       (B) may make such revisions to the guidelines as may be 
     necessary from time to time.
       (2) Content.--The guidelines developed under paragraph (1) 
     shall provide for, among other things--
       (A) regular, detailed briefings of the Congressional 
     Oversight Group regarding negotiating objectives, including 
     the promotion of certain priorities referred to in section 
     2102(c), and positions and the status of the applicable 
     negotiations, beginning as soon as practicable after the 
     Congressional Oversight Group is convened, with more frequent 
     briefings as trade negotiations enter the final stage;
       (B) access by members of the Congressional Oversight Group, 
     and staff with proper security clearances, to pertinent 
     documents relating to the negotiations, including classified 
     materials;
       (C) the closest practicable coordination between the Trade 
     Representative and the Congressional Oversight Group at all 
     critical periods during the negotiations, including at 
     negotiation sites;
       (D) after the applicable trade agreement is concluded, 
     consultation regarding ongoing compliance and enforcement of 
     negotiated commitments under the trade agreement; and
       (E) the time frame for submitting the report required under 
     section 2102(c)(8).
       (c) Request for Meeting.--Upon the request of a majority of 
     the Congressional Oversight Group, the President shall meet 
     with the Congressional Oversight Group before initiating 
     negotiations with respect to a trade agreement, or at any 
     other time concerning the negotiations.

     SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT 
                   REQUIREMENTS.

       (a) In General.--At the time the President submits to the 
     Congress the final text of an agreement pursuant to section 
     2105(a)(1)(C), the President shall also submit a plan for 
     implementing and enforcing the agreement.

[[Page S3682]]

     The implementation and enforcement plan shall include the 
     following:
       (1) Border personnel requirements.--A description of 
     additional personnel required at border entry points, 
     including a list of additional customs and agricultural 
     inspectors.
       (2) Agency staffing requirements.--A description of 
     additional personnel required by Federal agencies responsible 
     for monitoring and implementing the trade agreement, 
     including personnel required by the Office of the United 
     States Trade Representative, the Department of Commerce, the 
     Department of Agriculture (including additional personnel 
     required to implement sanitary and phytosanitary measures in 
     order to obtain market access for United States exports), the 
     Department of the Treasury, and such other agencies as may be 
     necessary.
       (3) Customs infrastructure requirements.--A description of 
     the additional equipment and facilities needed by the United 
     States Customs Service.
       (4) Impact on state and local governments.--A description 
     of the impact the trade agreement will have on State and 
     local governments as a result of increases in trade.
       (5) Cost analysis.--An analysis of the costs associated 
     with each of the items listed in paragraphs (1) through (4).
       (b) Budget Submission.--The President shall include a 
     request for the resources necessary to support the plan 
     described in subsection (a) in the first budget that the 
     President submits to the Congress after the submission of the 
     plan.

     SEC. 2109. COMMITTEE STAFF.

       The grant of trade promotion authority under this title is 
     likely to increase the activities of the primary committees 
     of jurisdiction in the area of international trade. In 
     addition, the creation of the Congressional Oversight Group 
     under section 2107 will increase the participation of a 
     broader number of Members of Congress in the formulation of 
     United States trade policy and oversight of the international 
     trade agenda for the United States. The primary committees of 
     jurisdiction should have adequate staff to accommodate these 
     increases in activities.

     SEC. 2110. CONFORMING AMENDMENTS.

       (a) In General.--Title I of the Trade Act of 1974 (19 
     U.S.C. 2111 et seq.) is amended as follows:
       (1) Implementing bill.--
       (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is amended by 
     striking ``section 1103(a)(1) of the Omnibus Trade and 
     Competitiveness Act of 1988, or section 282 of the Uruguay 
     Round Agreements Act'' and inserting ``section 282 of the 
     Uruguay Round Agreements Act, or section 2105(a)(1) of the 
     Bipartisan Trade Promotion Authority Act of 2002''.
       (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is amended by 
     striking ``or section 282 of the Uruguay Round Agreements 
     Act'' and inserting ``, section 282 of the Uruguay Round 
     Agreements Act, or section 2105(a)(1) of the Bipartisan Trade 
     Promotion Authority Act of 2002''.
       (2) Advice from international trade commission.--Section 
     131 (19 U.S.C. 2151) is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``section 123 of this Act 
     or section 1102 (a) or (c) of the Omnibus Trade and 
     Competitiveness Act of 1988,'' and inserting ``section 123 of 
     this Act or section 2103 (a) or (b) of the Bipartisan Trade 
     Promotion Authority Act of 2002,''; and
       (ii) in paragraph (2), by striking ``section 1102 (b) or 
     (c) of the Omnibus Trade and Competitiveness Act of 1988'' 
     and inserting ``section 2103(b) of the Bipartisan Trade 
     Promotion Authority Act of 2002'';
       (B) in subsection (b), by striking ``section 
     1102(a)(3)(A)'' and inserting ``section 2103(a)(3)(A) of the 
     Bipartisan Trade Promotion Authority Act of 2002''; and
       (C) in subsection (c), by striking ``section 1102 of the 
     Omnibus Trade and Competitiveness Act of 1988,'' and 
     inserting ``section 2103 of the Bipartisan Trade Promotion 
     Authority Act of 2002,''.
       (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
     (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
     striking ``section 1102 of the Omnibus Trade and 
     Competitiveness Act of 1988,'' each place it appears and 
     inserting ``section 2103 of the Bipartisan Trade Promotion 
     Authority Act of 2002,''.
       (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
     2154(b)) is amended by striking ``section 1102 of the Omnibus 
     Trade and Competitiveness Act of 1988'' and inserting 
     ``section 2103 of the Bipartisan Trade Promotion Authority 
     Act of 2002''.
       (5) Advice from private and public sectors.--Section 135 
     (19 U.S.C. 2155) is amended--
       (A) in subsection (a)(1)(A), by striking ``section 1102 of 
     the Omnibus Trade and Competitiveness Act of 1988'' and 
     inserting ``section 2103 of the Bipartisan Trade Promotion 
     Authority Act of 2002'';
       (B) in subsection (e)(1)--
       (i) by striking ``section 1102 of the Omnibus Trade and 
     Competitiveness Act of 1988'' each place it appears and 
     inserting ``section 2103 of the Bipartisan Trade Promotion 
     Authority Act of 2002''; and
       (ii) by striking ``not later than the date on which the 
     President notifies the Congress under section 1103(a)(1)(A) 
     of such Act of 1988 of his intention to enter into that 
     agreement'' and inserting ``not later than the date that is 
     30 days after the date on which the President notifies the 
     Congress under section 5(a)(1)(A) of the Bipartisan Trade 
     Promotion Authority Act of 2002 of the President's intention 
     to enter into that agreement''; and
       (C) in subsection (e)(2), by striking ``section 1101 of the 
     Omnibus Trade and Competitiveness Act of 1988'' and inserting 
     ``section 2102 of the Bipartisan Trade Promotion Authority 
     Act of 2002''.
       (6) Transmission of agreements to congress.--Section 162(a) 
     (19 U.S.C. 2212(a)) is amended by striking ``or under section 
     1102 of the Omnibus Trade and Competitiveness Act of 1988'' 
     and inserting ``or under section 2103 of the Bipartisan Trade 
     Promotion Authority Act of 2002''.
       (b) Application of Certain Provisions.--For purposes of 
     applying sections 125, 126, and 127 of the Trade Act of 1974 
     (19 U.S.C. 2135, 2136(a), and 2137)--
       (1) any trade agreement entered into under section 2103 
     shall be treated as an agreement entered into under section 
     101 or 102, as appropriate, of the Trade Act of 1974 (19 
     U.S.C. 2111 or 2112); and
       (2) any proclamation or Executive order issued pursuant to 
     a trade agreement entered into under section 2103 shall be 
     treated as a proclamation or Executive order issued pursuant 
     to a trade agreement entered into under section 102 of the 
     Trade Act of 1974.

     SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the International Trade Commission 
     shall report to the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives regarding the economic impact on the United 
     States of the trade agreements described in subsection (b).
       (b) Agreements.--The trade agreements described in this 
     subsection are:
       (1) The United States-Israel Free Trade Agreement.
       (2) The United States-Canada Free Trade Agreement.
       (3) The North American Free Trade Agreement.
       (4) The Uruguay Round Agreements.
       (5) The Tokyo Round of Multilateral Trade Negotiations.

     SEC. 2112. IDENTIFICATION OF SMALL BUSINESS ADVOCATE AT WTO.

       (a) In General.--The United States Trade Representative 
     shall pursue the identification of a small business advocate 
     at the World Trade Organization Secretariat to examine the 
     impact of WTO agreements on the interests of small- and 
     medium-sized enterprises, address the concerns of small- and 
     medium-sized enterprises, and recommend ways to address those 
     interests in trade negotiations involving the World Trade 
     Organization.
       (b) Assistant Trade Representative.--The Assistant United 
     States Trade Representative for Industry and 
     Telecommunications shall be responsible for ensuring that the 
     interests of small business are considered in all trade 
     negotiations in accordance with the objective described in 
     section 2102(a)(8). It is the sense of Congress that the 
     small business functions should be reflected in the title of 
     the Assistant United States Trade Representative assigned the 
     responsibility for small business.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, and annually thereafter, the United 
     States Trade Representative shall prepare and submit a report 
     to the Committee on Finance of the Senate and the Committee 
     on Ways and Means of the House of Representatives on the 
     steps taken by the United States Trade Representative to 
     pursue the identification of a small business advocate at the 
     World Trade Organization.

     SEC. 2113. DEFINITIONS.

       In this title:
       (1) Agreement on agriculture.--The term ``Agreement on 
     Agriculture'' means the agreement referred to in section 
     101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 
     3511(d)(2)).
       (2) Core labor standards.--The term ``core labor 
     standards'' means--
       (A) the right of association;
       (B) the right to organize and bargain collectively;
       (C) a prohibition on the use of any form of forced or 
     compulsory labor;
       (D) a minimum age for the employment of children; and
       (E) acceptable conditions of work with respect to minimum 
     wages, hours of work, and occupational safety and health.
       (3) GATT 1994.--The term ``GATT 1994'' has the meaning 
     given that term in section 2 of the Uruguay Round Agreements 
     Act (19 U.S.C. 3501).
       (4) ILO.--The term ``ILO'' means the International Labor 
     Organization.
       (5) Import sensitive agricultural product.--The term 
     ``import sensitive agricultural product'' means an 
     agricultural product with respect to which, as a result of 
     the Uruguay Round Agreements--
       (A) the rate of duty was the subject of tariff reductions 
     by the United States, and pursuant to such Agreements, was 
     reduced on January 1, 1995, to a rate which was not less than 
     97.5 percent of the rate of duty that applied to such article 
     on December 31, 1994; or
       (B) became subject to a tariff-rate quota on or after 
     January 1, 1995.
       (6) United states person.--The term ``United States 
     person'' means--
       (A) a United States citizen;
       (B) a partnership, corporation, or other legal entity 
     organized under the laws of the United States; and

[[Page S3683]]

       (C) a partnership, corporation, or other legal entity that 
     is organized under the laws of a foreign country and is 
     controlled by entities described in subparagraph (B) or 
     United States citizens, or both.
       (7) Uruguay round agreements.--The term ``Uruguay Round 
     Agreements'' has the meaning given that term in section 2(7) 
     of the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
       (8) World trade organization; wto.--The terms ``World Trade 
     Organization'' and ``WTO'' mean the organization established 
     pursuant to the WTO Agreement.
       (9) WTO agreement.--The term ``WTO Agreement'' means the 
     Agreement Establishing the World Trade Organization entered 
     into on April 15, 1994.

                DIVISION C--ANDEAN TRADE PREFERENCE ACT

                  TITLE XXXI--ANDEAN TRADE PREFERENCE

     SEC. 3101. SHORT TITLE; FINDINGS.

       (a) Short Title.--This title may be cited as the ``Andean 
     Trade Preference Expansion Act''.
       (b) Findings.--Congress makes the following findings:
       (1) Since the Andean Trade Preference Act was enacted in 
     1991, it has had a positive impact on United States trade 
     with Bolivia, Colombia, Ecuador, and Peru. Two-way trade has 
     doubled, with the United States serving as the leading source 
     of imports and leading export market for each of the Andean 
     beneficiary countries. This has resulted in increased jobs 
     and expanded export opportunities in both the United States 
     and the Andean region.
       (2) The Andean Trade Preference Act has been a key element 
     in the United States counternarcotics strategy in the Andean 
     region, promoting export diversification and broad-based 
     economic development that provides sustainable economic 
     alternatives to drug-crop production, strengthening the 
     legitimate economies of Andean countries and creating viable 
     alternatives to illicit trade in coca.
       (3) Notwithstanding the success of the Andean Trade 
     Preference Act, the Andean region remains threatened by 
     political and economic instability and fragility, vulnerable 
     to the consequences of the drug war and fierce global 
     competition for its legitimate trade.
       (4) The continuing instability in the Andean region poses a 
     threat to the security interests of the United States and the 
     world. This problem has been partially addressed through 
     foreign aid, such as Plan Colombia, enacted by Congress in 
     2000. However, foreign aid alone is not sufficient. 
     Enhancement of legitimate trade with the United States 
     provides an alternative means for reviving and stabilizing 
     the economies in the Andean region.
       (5) The Andean Trade Preference Act constitutes a tangible 
     commitment by the United States to the promotion of 
     prosperity, stability, and democracy in the beneficiary 
     countries.
       (6) Renewal and enhancement of the Andean Trade Preference 
     Act will bolster the confidence of domestic private 
     enterprise and foreign investors in the economic prospects of 
     the region, ensuring that legitimate private enterprise can 
     be the engine of economic development and political stability 
     in the region.
       (7) Each of the Andean beneficiary countries is committed 
     to conclude negotiation of a Free Trade Area of the Americas 
     by the year 2005, as a means of enhancing the economic 
     security of the region.
       (8) Temporarily enhancing trade benefits for Andean 
     beneficiaries countries will promote the growth of free 
     enterprise and economic opportunity in these countries and 
     serve the security interests of the United States, the 
     region, and the world.

     SEC. 3102. TEMPORARY PROVISIONS.

       (a) In General.--Section 204(b) of the Andean Trade 
     Preference Act (19 U.S.C. 3203(b)) is amended to read as 
     follows:
       ``(b) Import-Sensitive Articles.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     the duty-free treatment provided under this title does not 
     apply to--
       ``(A) textile and apparel articles which were not eligible 
     articles for purposes of this title on January 1, 1994, as 
     this title was in effect on that date;
       ``(B) footwear not designated at the time of the effective 
     date of this title as eligible articles for the purpose of 
     the generalized system of preferences under title V of the 
     Trade Act of 1974;
       ``(C) tuna, prepared or preserved in any manner, in 
     airtight containers;
       ``(D) petroleum, or any product derived from petroleum, 
     provided for in headings 2709 and 2710 of the HTS;
       ``(E) watches and watch parts (including cases, bracelets, 
     and straps), of whatever type including, but not limited to, 
     mechanical, quartz digital, or quartz analog, if such watches 
     or watch parts contain any material which is the product of 
     any country with respect to which HTS column 2 rates of duty 
     apply;
       ``(F) articles to which reduced rates of duty apply under 
     subsection (c);
       ``(G) sugars, syrups, and sugar containing products subject 
     to tariff-rate quotas; or
       ``(H) rum and tafia classified in subheading 2208.40 of the 
     HTS.
       ``(2) Transition period treatment of certain textile and 
     apparel articles.--
       ``(A) Articles covered.--During the transition period, the 
     preferential treatment described in subparagraph (B) shall 
     apply to the following articles imported directly into the 
     customs territory of the United States from an ATPEA 
     beneficiary country:
       ``(i) Apparel articles assembled from products of the 
     united states and atpea beneficiary countries or products not 
     available in commercial quantities.--Apparel articles sewn or
     otherwise assembled in 1 or more ATPEA beneficiary countries, 
     or the United States, or both, exclusively from any one or 
     any combination of the following:

       ``(I) Fabrics or fabric components formed, or components 
     knit-to-shape, in the United States, from yarns wholly formed 
     in the United States (including fabrics not formed from 
     yarns, if such fabrics are classifiable under heading 5602 or 
     5603 of the HTS and are formed in the United States), 
     provided that apparel articles sewn or
     otherwise assembled from materials described in this 
     subclause are assembled with thread formed in the United 
     States.
       ``(II) Fabric components knit-to-shape in the United States 
     from yarns wholly formed in the United States and fabric 
     components knit-to-shape in 1 or more ATPEA beneficiary 
     countries from yarns wholly formed in the United States.
       ``(III) Fabrics or fabric components formed or components 
     knit-to-shape, in 1 or more ATPEA beneficiary countries, from 
     yarns wholly formed in 1 or more ATPEA beneficiary countries, 
     if such fabrics (including fabrics not formed from yarns, if 
     such fabrics are classifiable under heading 5602 or 5603 of 
     the HTS and are formed in 1 or more ATPEA beneficiary 
     countries) or components are in chief weight of llama, or 
     alpaca.
       ``(IV) Fabrics or yarns that are not formed in the United 
     States or in 1 or more ATPEA beneficiary countries, to the 
     extent such fabrics or yarns are considered not to be widely 
     available in commercial quantities for purposes of 
     determining the eligibility of such apparel articles for 
     preferential treatment under Annex 401 of the NAFTA.

       ``(ii) Knit-to-shape apparel articles.--Apparel articles 
     knit-to-shape (other than socks provided for in heading 6115 
     of the HTS) in 1 or more ATPEA beneficiary countries from 
     yarns wholly formed in the United States.
       ``(iii) Regional fabric.--

       ``(I) General rule.--Knit apparel articles wholly assembled 
     in 1 or more ATPEA beneficiary countries exclusively from 
     fabric formed, or fabric components formed, or components 
     knit-to-shape, or any combination thereof, in 1 or more ATPEA 
     beneficiary countries from yarns wholly formed in the United 
     States, in an amount not exceeding the amount set forth in 
     subclause (II).
       ``(II) Limitation.--The amount referred to in subclause (I) 
     is 70,000,000 square meter equivalents during the 1-year 
     period beginning on March 1, 2002, increased by 16 percent, 
     compounded annually, in each succeeding 1-year period through 
     February 28, 2006.

       ``(iv) Certain other apparel articles.--

       ``(I) General rule.--Subject to subclause (II), any apparel 
     article classifiable under subheading 6212.10 of the HTS, if 
     the article is both cut and sewn or otherwise assembled in 
     the United States, or one or more of the ATPEA beneficiary 
     countries, or both.
       ``(II) Limitation.--During the 1-year period beginning on 
     March 1, 2003, and during each of the 2 succeeding 1-year 
     periods, apparel articles described in subclause (I) of a 
     producer or an entity controlling production shall be 
     eligible for preferential treatment under subparagraph (B) 
     only if the aggregate cost of fabric components formed in the 
     United States that are used in the production of all such 
     articles of that producer or entity that are entered during 
     the preceding 1-year period is at least 75 percent of the 
     aggregate declared customs value of the fabric contained in 
     all such articles of that producer or entity that are entered 
     during the preceding 1-year period.
       ``(III) Development of procedure to ensure compliance.--The 
     United States Customs Service shall develop and implement 
     methods and procedures to ensure ongoing compliance with the 
     requirement set forth in subclause (II). If the Customs 
     Service finds that a producer or an entity controlling 
     production has not satisfied such requirement in a 1-year 
     period, then apparel articles described in subclause (I) of 
     that producer or entity shall be ineligible for preferential 
     treatment under subparagraph (B) during any succeeding 1-year 
     period until the aggregate cost of fabric components formed 
     in the United States used in the production of such articles 
     of that producer or entity that are entered during the 
     preceding 1-year period is at least 85 percent of the 
     aggregate declared customs value of the fabric contained in 
     all such articles of that producer or entity that are entered 
     during the preceding 1-year period.

       ``(v) Apparel articles assembled from fabrics or yarn not 
     widely available in commercial quantities.--At the request of 
     any interested party, the President is authorized to proclaim 
     additional fabrics and yarn as eligible for preferential 
     treatment under clause (i)(IV) if--

       ``(I) the President determines that such fabrics or yarn 
     cannot be supplied by the domestic industry in commercial 
     quantities in a timely manner;
       ``(II) the President has obtained advice regarding the 
     proposed action from the appropriate advisory committee 
     established under section 135 of the Trade Act of 1974 (19 
     U.S.C.

[[Page S3684]]

     2155) and the United States International Trade Commission;
       ``(III) within 60 days after the request, the President has 
     submitted a report to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate that sets forth the action proposed to be proclaimed 
     and the reasons for such actions, and the advice obtained 
     under subclause (II);
       ``(IV) a period of 60 calendar days, beginning with the 
     first day on which the President has met the requirements of 
     subclause (III), has expired; and
       ``(V) the President has consulted with such committees 
     regarding the proposed action during the period referred to 
     in subclause (III).

       ``(vi) Handloomed, handmade, and folklore articles.--A 
     handloomed, handmade, or folklore article of an ATPEA 
     beneficiary country identified under subparagraph (C) that is 
     certified as such by the competent authority of such 
     beneficiary country.
       ``(vii) Special rules.--

       ``(I) Exception for findings and trimmings.--(aa) An 
     article otherwise eligible for preferential treatment under 
     this paragraph shall not be ineligible for such treatment 
     because the article contains findings or trimmings of foreign 
     origin, if such findings and trimmings do not exceed 25 
     percent of the cost of the components of the assembled 
     product. Examples of findings and trimmings are sewing 
     thread, hooks and eyes, snaps, buttons, `bow buds', 
     decorative lace, trim, elastic strips, zippers, including 
     zipper tapes and labels, and other similar products. Elastic 
     strips are considered findings or trimmings only if they are 
     each less than 1 inch in width and are used in the production 
     of brassieres.
       ``(bb) In the case of an article described in clause (i)(I) 
     of this subparagraph, sewing thread shall not be treated as 
     findings or trimmings under this subclause.
       ``(II) Certain interlinings.--(aa) An article otherwise 
     eligible for preferential treatment under this paragraph 
     shall not be ineligible for such treatment because the 
     article contains certain interlinings of foreign origin, if 
     the value of such interlinings (and any findings and 
     trimmings) does not exceed 25 percent of the cost of the 
     components of the assembled article.
       ``(bb) Interlinings eligible for the treatment described in 
     division (aa) include only a chest type plate, `hymo' piece, 
     or `sleeve header', of woven or weft-inserted warp knit 
     construction and of coarse animal hair or man-made filaments.
       ``(cc) The treatment described in this subclause shall 
     terminate if the President makes a determination that United 
     States manufacturers are producing such interlinings in the 
     United States in commercial quantities.
       ``(III) De minimis rule.--An article that would otherwise 
     be ineligible for preferential treatment under this paragraph 
     because the article contains yarns not wholly formed in the 
     United States or in 1 or more ATPEA beneficiary countries 
     shall not be ineligible for such treatment if the total 
     weight of all such yarns is not more than 7 percent of the 
     total weight of the good. Notwithstanding the preceding 
     sentence, an apparel article containing elastomeric yarns 
     shall be eligible for preferential treatment under this 
     paragraph only if such yarns are wholly formed in the United 
     States.
       ``(IV) Special origin rule.--An article otherwise eligible 
     for preferential treatment under clause (i) of this 
     subparagraph shall not be ineligible for such treatment 
     because the article contains nylon filament yarn (other than 
     elastomeric yarn) that is classifiable under subheading 
     5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 
     5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 
     of the HTS duty-free from a country that is a party to an 
     agreement with the United States establishing a free trade 
     area, which entered into force before January 1, 1995.
       ``(V) Clarification of certain knit apparel articles.--
     Notwithstanding any other provision of law, an article 
     otherwise eligible for preferential treatment under clause 
     (iii)(I) of this subparagraph, shall not be ineligible for 
     such treatment because the article, or a component thereof, 
     contains fabric formed in the United States from yarns wholly 
     formed in the United States.

       ``(viii) Textile luggage.--Textile luggage--

       ``(I) assembled in an ATPEA beneficiary country from fabric 
     wholly formed and cut in the United States, from yarns wholly 
     formed in the United States, that is entered under subheading 
     9802.00.80 of the HTS; or
       ``(II) assembled from fabric cut in an ATPEA beneficiary 
     country from fabric wholly formed in the United States from 
     yarns wholly formed in the United States.

       ``(B) Preferential treatment.--Except as provided in 
     subparagraph (E), during the transition period, the articles 
     to which subparagraph (A) applies shall enter the United 
     States free of duty and free of any quantitative 
     restrictions, limitations, or consultation levels.
       ``(C) Handloomed, handmade, and folklore articles.--For 
     purposes of subparagraph (A)(vi), the President shall consult 
     with representatives of the ATPEA beneficiary countries 
     concerned for the purpose of identifying particular textile 
     and apparel goods that are mutually agreed upon as being 
     handloomed, handmade, or folklore goods of a kind described 
     in section 2.3(a), (b), or (c) of the Annex or Appendix 
     3.1.B.11 of the Annex.
       ``(D) Penalties for transshipments.--
       ``(i) Penalties for exporters.--If the President 
     determines, based on sufficient evidence, that an exporter 
     has engaged in transshipment with respect to textile or 
     apparel articles from an ATPEA beneficiary country, then the 
     President shall deny all benefits under this title to such 
     exporter, and any successor of such exporter, for a period of 
     2 years.
       ``(ii) Penalties for countries.--Whenever the President 
     finds, based on sufficient evidence, that transshipment has 
     occurred, the President shall request that the ATPEA 
     beneficiary country or countries through whose territory the 
     transshipment has occurred take all necessary and appropriate 
     actions to prevent such transshipment. If the President 
     determines that a country is not taking such actions, the 
     President shall reduce the quantities of textile and apparel 
     articles that may be imported into the United States from 
     such country by the quantity of the transshipped articles 
     multiplied by 3, to the extent consistent with the 
     obligations of the United States under the WTO.
       ``(iii) Transshipment described.--Transshipment within the 
     meaning of this subparagraph has occurred when preferential 
     treatment under subparagraph (B) has been claimed for a 
     textile or apparel article on the basis of material false 
     information concerning the country of origin, manufacture, 
     processing, or assembly of the article or any of its 
     components. For purposes of this clause, false information is 
     material if disclosure of the true information would mean or 
     would have meant that the article is or was ineligible for 
     preferential treatment under subparagraph (B).
       ``(E) Bilateral emergency actions.--
       ``(i) In general.--The President may take bilateral 
     emergency tariff actions of a kind described in section 4 of 
     the Annex with respect to any apparel article imported from 
     an ATPEA beneficiary country if the application of tariff 
     treatment under subparagraph (B) to such article results in 
     conditions that would be cause for the taking of such actions 
     under such section 4 with respect to a like article described 
     in the same 8-digit subheading of the HTS that is imported 
     from Mexico.
       ``(ii) Rules relating to bilateral emergency action.--For 
     purposes of applying bilateral emergency action under this 
     subparagraph--

       ``(I) the requirements of paragraph (5) of section 4 of the 
     Annex (relating to providing compensation) shall not apply;
       ``(II) the term `transition period' in section 4 of the 
     Annex shall have the meaning given that term in paragraph 
     (5)(D) of this subsection; and
       ``(III) the requirements to consult specified in section 4 
     of the Annex shall be treated as satisfied if the President 
     requests consultations with the ATPEA beneficiary country in 
     question and the country does not agree to consult within the 
     time period specified under section 4.

       ``(3) Transition period treatment of certain other articles 
     originating in beneficiary countries.--
       ``(A) Equivalent tariff treatment.--
       ``(i) In general.--Subject to clause (ii), the tariff 
     treatment accorded at any time during the transition period 
     to any article referred to in any of subparagraphs (B), (D) 
     through (F), or (H) of paragraph (1) that is an ATPEA 
     originating good, imported directly into the customs 
     territory of the United States from an ATPEA beneficiary 
     country, shall be identical to the tariff treatment that is 
     accorded at such time under Annex 302.2 of the NAFTA to an 
     article described in the same 8-digit subheading of the HTS 
     that is a good of Mexico and is imported into the United 
     States.
       ``(ii) Exception.--Clause (i) does not apply to--

       ``(I) any article accorded duty-free treatment under U.S. 
     Note 2(b) to subchapter II of chapter 98 of the HTS; or
       ``(II) any article described in subheading 6401.10.00, 
     6401.91.00, 6401.92.90, 6401.99.30, 6401.99.60, 6401.99.90, 
     6402.30.50, 6402.30.70, 6402.30.80, 6402.91.50, 6402.91.80, 
     6402.91.90, 6402.99.20, 6402.99.30, 6402.99.80, 6402.99.90, 
     6403.91.60, 6404.11.50, 6404.11.60, 6404.11.70, 6404.11.80, 
     6404.11.90, 6404.19.20, 6404.19.35, 6404.19.50, or 6404.19.70 
     of the HTS.

       ``(B) Relationship to subsection (c) duty reductions.--If 
     at any time during the transition period the rate of duty 
     that would (but for action taken under subparagraph (A)(i) in 
     regard to such period) apply with respect to any article 
     under subsection (c) is a rate of duty that is lower than the 
     rate of duty resulting from such action, then such lower rate 
     of duty shall be applied for the purposes of implementing 
     such action.
       ``(C) Special rule for sugars, syrups, and sugar containing 
     products.--Duty-free treatment under this Act shall not be 
     extended to sugars, syrups, and sugar-containing products 
     subject to over-quota duty rates under applicable tariff-rate 
     quotas.
       ``(D) Special rule for certain tuna products.--
       ``(i) In general.--The President may proclaim duty-free 
     treatment under this Act for tuna that is harvested by United 
     States vessels or ATPEA beneficiary country vessels, and is 
     prepared or preserved in any manner, in airtight containers 
     in an ATPEA beneficiary country. Such duty-free treatment may 
     be proclaimed in any calendar year for a quantity of such 
     tuna that does not exceed 20 percent of the domestic United 
     States tuna pack in the preceding calendar year. As used in 
     the preceding sentence, the term

[[Page S3685]]

     `tuna pack' means tuna pack as defined by the National Marine 
     Fisheries Service of the United States Department of Commerce 
     for purposes of subheading 1604.14.20 of the HTS as in effect 
     on the date of enactment of the Andean Trade Preference 
     Expansion Act.
       ``(ii) United states vessel.--For purposes of this 
     subparagraph, a `United States vessel' is a vessel having a 
     certificate of documentation with a fishery endorsement under 
     chapter 121 of title 46, United States Code.
       ``(iii) ATPEA vessel.--For purposes of this subparagraph, 
     an `ATPEA vessel' is a vessel--

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

       ``(4) Customs procedures.--
       ``(A) In general.--
       ``(i) Regulations.--Any importer that claims preferential 
     treatment under paragraph (2) or (3) shall comply with 
     customs procedures similar in all material respects to the 
     requirements of Article 502(1) of the NAFTA as implemented 
     pursuant to United States law, in accordance with regulations 
     promulgated by the Secretary of the Treasury.
       ``(ii) Determination.--

       ``(I) In general.--In order to qualify for the preferential 
     treatment under paragraph (2) or (3) and for a Certificate of 
     Origin to be valid with respect to any article for which such 
     treatment is claimed, there shall be in effect a 
     determination by the President that each country described in 
     subclause (II)--

       ``(aa) has implemented and follows; or
       ``(bb) is making substantial progress toward implementing 
     and following, procedures and requirements similar in all 
     material respects to the relevant procedures and requirements 
     under chapter 5 of the NAFTA.

       ``(II) Country described.--A country is described in this 
     subclause if it is an ATPEA beneficiary country--

       ``(aa) from which the article is exported; or
       ``(bb) in which materials used in the production of the 
     article originate or in which the article or such materials 
     undergo production that contributes to a claim that the 
     article is eligible for preferential treatment under 
     paragraph (2) or (3).
       ``(B) Certificate of origin.--The Certificate of Origin 
     that otherwise would be required pursuant to the provisions 
     of subparagraph (A) shall not be required in the case of an 
     article imported under paragraph (2) or (3) if such 
     Certificate of Origin would not be required under Article 503 
     of the NAFTA (as implemented pursuant to United States law), 
     if the article were imported from Mexico.
       ``(C) Report by ustr on cooperation of other countries 
     concerning circumvention.--The United States Commissioner of 
     Customs shall conduct a study analyzing the extent to which 
     each ATPEA beneficiary country--
       ``(i) has cooperated fully with the United States, 
     consistent with its domestic laws and procedures, in 
     instances of circumvention or alleged circumvention of 
     existing quotas on imports of textile and apparel goods, to 
     establish necessary relevant facts in the places of import, 
     export, and, where applicable, transshipment, including 
     investigation of circumvention practices, exchanges of 
     documents, correspondence, reports, and other relevant 
     information, to the extent such information is available;
       ``(ii) has taken appropriate measures, consistent with its 
     domestic laws and procedures, against exporters and importers 
     involved in instances of false declaration concerning fiber 
     content, quantities, description, classification, or origin 
     of textile and apparel goods; and
       ``(iii) has penalized the individuals and entities involved 
     in any such circumvention, consistent with its domestic laws 
     and procedures, and has worked closely to seek the 
     cooperation of any third country to prevent such 
     circumvention from taking place in that third country.

     The Trade Representative shall submit to Congress, not later 
     than October 1, 2002, a report on the study conducted under 
     this subparagraph.
       ``(5) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Annex.--The term `the Annex' means Annex 300-B of the 
     NAFTA.
       ``(B) ATPEA beneficiary country.--The term `ATPEA 
     beneficiary country' means any `beneficiary country', as 
     defined in section 203(a)(1) of this title, which the 
     President designates as an ATPEA beneficiary country, taking 
     into account the criteria contained in subsections (c) and 
     (d) of section 203 and other appropriate criteria, including 
     the following:
       ``(i) Whether the beneficiary country has demonstrated a 
     commitment to--

       ``(I) undertake its obligations under the WTO, including 
     those agreements listed in section 101(d) of the Uruguay 
     Round Agreements Act, on or ahead of schedule; and
       ``(II) participate in negotiations toward the completion of 
     the FTAA or another free trade agreement.

       ``(ii) The extent to which the country provides protection 
     of intellectual property rights consistent with or greater 
     than the protection afforded under the Agreement on Trade-
     Related Aspects of Intellectual Property Rights described in 
     section 101(d)(15) of the Uruguay Round Agreements Act.
       ``(iii) The extent to which the country provides 
     internationally recognized worker rights, including--

       ``(I) the right of association;
       ``(II) the right to organize and bargain collectively;
       ``(III) a prohibition on the use of any form of forced or 
     compulsory labor;
       ``(IV) a minimum age for the employment of children; and
       ``(V) acceptable conditions of work with respect to minimum 
     wages, hours of work, and occupational safety and health.

       ``(iv) Whether the country has implemented its commitments 
     to eliminate the worst forms of child labor, as defined in 
     section 507(6) of the Trade Act of 1974.
       ``(v) The extent to which the country has met the counter-
     narcotics certification criteria set forth in section 490 of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2291j) for 
     eligibility for United States assistance.
       ``(vi) The extent to which the country has taken steps to 
     become a party to and implements the Inter-American 
     Convention Against Corruption.
       ``(vii) The extent to which the country--

       ``(I) applies transparent, nondiscriminatory, and 
     competitive procedures in government procurement equivalent 
     to those contained in the Agreement on Government Procurement 
     described in section 101(d)(17) of the Uruguay Round 
     Agreements Act; and
       ``(II) contributes to efforts in international fora to 
     develop and implement international rules in transparency in 
     government procurement.

       ``(C) ATPEA originating good.--
       ``(i) In general.--The term `ATPEA originating good' means 
     a good that meets the rules of origin for a good set forth in 
     chapter 4 of the NAFTA as implemented pursuant to United 
     States law.
       ``(ii) Application of chapter 4.--In applying chapter 4 of 
     the NAFTA with respect to an ATPEA beneficiary country for 
     purposes of this subsection--

       ``(I) no country other than the United States and an ATPEA 
     beneficiary country may be treated as being a party to the 
     NAFTA;
       ``(II) any reference to trade between the United States and 
     Mexico shall be deemed to refer to trade between the United 
     States and an ATPEA beneficiary country;
       ``(III) any reference to a party shall be deemed to refer 
     to an ATPEA beneficiary country or the United States; and
       ``(IV) any reference to parties shall be deemed to refer to 
     any combination of ATPEA beneficiary countries or to the 
     United States and one or more ATPEA beneficiary countries (or 
     any combination thereof ).

       ``(D) Transition period.--The term `transition period' 
     means, with respect to an ATPEA beneficiary country, the 
     period that begins on the date of enactment, and ends on the 
     earlier of--
       ``(i) February 28, 2006; or
       ``(ii) the date on which the FTAA or another free trade 
     agreement that makes substantial progress in achieving the 
     negotiating objectives set forth in section 108(b)(5) of 
     Public Law 103-182 (19 U.S.C. 3317(b)(5)) enters into force 
     with respect to the United States and the ATPEA beneficiary 
     country.
       ``(E) ATPEA.--The term `ATPEA' means the Andean Trade 
     Preference Expansion Act.
       ``(F) FTAA.--The term `FTAA' means the Free Trade Area of 
     the Americas.''.
       (b) Determination Regarding Retention of Designation.--
     Section 203(e) of the Andean Trade Preference Act (19 U.S.C. 
     3202(e)) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (B) by inserting ``(A)'' after ``(1)''; and
       (C) by adding at the end the following:
       ``(B) The President may, after the requirements of 
     paragraph (2) have been met--
       ``(i) withdraw or suspend the designation of any country as 
     an ATPEA beneficiary country; or
       ``(ii) withdraw, suspend, or limit the application of 
     preferential treatment under section 204(b) (2) and (3) to 
     any article of any country,

     if, after such designation, the President determines that, as 
     a result of changed circumstances, the performance of such 
     country is not satisfactory under the criteria set forth in 
     section 204(b)(5)(B).''; and
       (2) by adding after paragraph (2) the following new 
     paragraph:
       ``(3) If preferential treatment under section 204(b) (2) 
     and (3) is withdrawn, suspended, or limited with respect to 
     an ATPEA beneficiary country, such country shall not be 
     deemed to be a `party' for the purposes of applying section 
     204(b)(5)(C) to imports of articles for which preferential 
     treatment has been withdrawn, suspended, or limited with 
     respect to such country.''.

[[Page S3686]]

       (c) Reporting Requirements.--Section 203(f ) of the Andean 
     Trade Preference Act (19 U.S.C. 3202(f )) is amended to read 
     as follows:
       ``(f ) Reporting Requirements.--
       ``(1) In general.--Not later than December 31, 2002, and 
     every 2 years thereafter during the period this title is in 
     effect, the United States Trade Representative shall submit 
     to Congress a report regarding the operation of this title, 
     including--
       ``(A) with respect to subsections (c) and (d), the results 
     of a general review of beneficiary countries based on the 
     considerations described in such subsections; and
       ``(B) the performance of each beneficiary country or ATPEA 
     beneficiary country, as the case may be, under the criteria 
     set forth in section 204(b)(5)(B).
       ``(2) Public comment.--Before submitting the report 
     described in paragraph (1), the United States Trade 
     Representative shall publish a notice in the Federal Register 
     requesting public comments on whether beneficiary countries 
     are meeting the criteria listed in section 204(b)(5)(B).''.
       (d) Conforming Amendments.--
       (1) In general.--
       (A) Section 202 of the Andean Trade Preference Act (19 
     U.S.C. 3201) is amended by inserting ``(or other preferential 
     treatment)'' after ``treatment''.
       (B) Section 204(a)(1) of the Andean Trade Preference Act 
     (19 U.S.C. 3203(a)(1)) is amended by inserting ``(or 
     otherwise provided for)'' after ``eligibility''.
       (C) Section 204(a)(1) of the Andean Trade Preference Act 
     (19 U.S.C. 3203(a)(1)) is amended by inserting ``(or 
     preferential treatment)'' after ``duty-free treatment''.
       (2) Definitions.--Section 203(a) of the Andean Trade 
     Preference Act (19 U.S.C. 3202(a)) is amended by adding at 
     the end the following new paragraphs:
       ``(4) The term ``NAFTA'' means the North American Free 
     Trade Agreement entered into between the United States, 
     Mexico, and Canada on December 17, 1992.
       ``(5) The terms `WTO' and `WTO member' have the meanings 
     given those terms in section 2 of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501).''.
       (e) Petitions for Review.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this Act, the President shall promulgate 
     regulations regarding the review of eligibility of articles 
     and countries under the Andean Trade Preference Act, 
     consistent with section 203(e) of such Act, as amended by 
     this title.
       (2) Content of regulations.--The regulations shall be 
     similar to the regulations regarding eligibility under the 
     Generalized System of Preferences with respect to the 
     timetable for reviews and content, and shall include 
     procedures for requesting withdrawal, suspension, or 
     limitations of preferential duty treatment under the Act, 
     conducting reviews of such requests, and implementing the 
     results of the reviews.

     SEC. 3103. TERMINATION.

       (a) In General.--Section 208(b) of the Andean Trade 
     Preference Act (19 U.S.C. 3206(b)) is amended to read as 
     follows:
       ``(b) Termination of Preferential Treatment.--No 
     preferential duty treatment extended to beneficiary countries 
     under this Act shall remain in effect after February 28, 
     2006.''.
       (b) Retroactive Application for Certain Liquidations and 
     Reliquidations.--
       (1) In general.--Notwithstanding section 514 of the Tariff 
     Act of 1930 or any other provision of law, and subject to 
     paragraph (3), the entry--
       (A) of any article to which duty-free treatment (or 
     preferential treatment) under the Andean Trade Preference Act 
     (19 U.S.C. 3201 et seq.) would have applied if the entry had 
     been made on December 4, 2001,
       (B) that was made after December 4, 2001, and before the 
     date of the enactment of this Act, and
       (C) to which duty-free treatment (or preferential 
     treatment) under the Andean Trade Preference Act did not 
     apply,

     shall be liquidated or reliquidated as if such duty-free 
     treatment (or preferential treatment) applied, and the 
     Secretary of the Treasury shall refund any duty paid with 
     respect to such entry.
       (2) Entry.--As used in this subsection, the term ``entry'' 
     includes a withdrawal from warehouse for consumption.
       (3) Requests.--Liquidation or reliquidation may be made 
     under paragraph (1) with respect to an entry only if a 
     request therefor is filed with the Customs Service, within 
     180 days after the date of the enactment of this Act, that 
     contains sufficient information to enable the Customs 
     Service--
       (A) to locate the entry; or
       (B) to reconstruct the entry if it cannot be located.

               TITLE XXXII--MISCELLANEOUS TRADE BENEFITS

     SEC. 3201. WOOL PROVISIONS.

       (a) Short Title.--This section may be cited as the ``Wool 
     Manufacturer Payment Clarification and Technical Corrections 
     Act''.
       (b) Clarification of Temporary Duty Suspension.--Heading 
     9902.51.13 of the Harmonized Tariff Schedule of the United 
     States is amended by inserting ``average'' before 
     ``diameters''.
       (c) Payments to Manufacturers of Certain Wool Products.--
       (1) Payments.--Section 505 of the Trade and Development Act 
     of 2000 (Public Law 106-200; 114 Stat. 303) is amended as 
     follows:
       (A) Subsection (a) is amended--
       (i) by striking ``In each of the calendar years'' and 
     inserting ``For each of the calendar years''; and
       (ii) by striking ``for a refund of duties'' and all that 
     follows through the end of the subsection and inserting ``for 
     a payment equal to an amount determined pursuant to 
     subsection (d)(1).''.
       (B) Subsection (b) is amended to read as follows:
       ``(b) Wool Yarn.--
       ``(1) Importing manufacturers.--For each of the calendar 
     years 2000, 2001, and 2002, a manufacturer of worsted wool 
     fabrics who imports wool yarn of the kind described in 
     heading 9902.51.13 of the Harmonized Tariff Schedule of the 
     United States shall be eligible for a payment equal to an 
     amount determined pursuant to subsection (d)(2).
       ``(2) Nonimporting manufacturers.--For each of the calendar 
     years 2001 and 2002, any other manufacturer of worsted wool 
     fabrics of imported wool yarn of the kind described in 
     heading 9902.51.13 of the Harmonized Tariff Schedule of the 
     United States shall be eligible for a payment equal to an 
     amount determined pursuant to subsection (d)(2).''.
       (C) Subsection (c) is amended to read as follows:
       ``(c) Wool Fiber and Wool Top.--
       ``(1) Importing manufacturers.--For each of the calendar 
     years 2000, 2001, and 2002, a manufacturer of wool yarn or 
     wool fabric who imports wool fiber or wool top of the kind 
     described in heading 9902.51.14 of the Harmonized Tariff 
     Schedule of the United States shall be eligible for a payment 
     equal to an amount determined pursuant to subsection (d)(3).
       ``(2) Nonimporting manufacturers.--For each of the calendar 
     years 2001 and 2002, any other manufacturer of wool yarn or 
     wool fabric of imported wool fiber or wool top of the kind 
     described in heading 9902.51.14 of the Harmonized Tariff 
     Schedule of the United States shall be eligible for a payment 
     equal to an amount determined pursuant to subsection 
     (d)(3).''.
       (D) Section 505 is further amended by striking subsection 
     (d) and inserting the following new subsections:
       ``(d) Amount of Annual Payments to Manufacturers.--
       ``(1) Manufacturers of men's suits, etc. of imported 
     worsted wool fabrics.--
       ``(A) Eligible to receive more than $5,000.--Each annual 
     payment to manufacturers described in subsection (a) who, 
     according to the records of the Customs Service as of 
     September 11, 2001, are eligible to receive more than $5,000 
     for each of the calendar years 2000, 2001, and 2002, shall be 
     in an amount equal to one-third of the amount determined by 
     multiplying $30,124,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the duties paid on eligible wool products imported in 
     calendar year 1999 by the manufacturer making the claim, and
       ``(ii) the denominator of which is the total amount 
     attributable to the duties paid on eligible wool products 
     imported in calendar year 1999 by all the manufacturers 
     described in subsection (a) who, according to the records of 
     the Customs Service as of September 11, 2001, are eligible to 
     receive more than $5,000 for each such calendar year under 
     this section as it was in effect on that date.
       ``(B) Eligible wool products.--For purposes of subparagraph 
     (A), the term `eligible wool products' refers to imported 
     worsted wool fabrics described in subsection (a).
       ``(C) Others.--All manufacturers described in subsection 
     (a), other than the manufacturers to which subparagraph (A) 
     applies, shall each receive an annual payment in an amount 
     equal to one-third of the amount determined by dividing 
     $1,665,000 by the number of all such other manufacturers.
       ``(2) Manufacturers of worsted wool fabrics of imported 
     wool yarn.--
       ``(A) Importing manufacturers.--Each annual payment to an 
     importing manufacturer described in subsection (b)(1) shall 
     be in an amount equal to one-third of the amount determined 
     by multiplying $2,202,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the duties paid on eligible wool products imported in 
     calendar year 1999 by the importing manufacturer making the 
     claim, and
       ``(ii) the denominator of which is the total amount 
     attributable to the duties paid on eligible wool products 
     imported in calendar year 1999 by all the importing 
     manufacturers described in subsection (b)(1).
       ``(B) Eligible wool products.--For purposes of subparagraph 
     (A), the term `eligible wool products' refers to imported 
     wool yarn described in subsection (b)(1).
       ``(C) Nonimporting manufacturers.--Each annual payment to a 
     nonimporting manufacturer described in subsection (b)(2) 
     shall be in an amount equal to one-half of the amount 
     determined by multiplying $141,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the purchases of imported eligible wool products in calendar 
     year 1999 by the nonimporting manufacturer making the claim, 
     and
       ``(ii) the denominator of which is the total amount 
     attributable to the purchases of imported eligible wool 
     products in calendar year 1999 by all the nonimporting 
     manufacturers described in subsection (b)(2).
       ``(3) Manufacturers of wool yarn or wool fabric of imported 
     wool fiber or wool top.--

[[Page S3687]]

       ``(A) Importing manufacturers.--Each annual payment to an 
     importing manufacturer described in subsection (c)(1) shall 
     be in an amount equal to one-third of the amount determined 
     by multiplying $1,522,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the duties paid on eligible wool products imported in 
     calendar year 1999 by the importing manufacturer making the 
     claim, and
       ``(ii) the denominator of which is the total amount 
     attributable to the duties paid on eligible wool products 
     imported in calendar year 1999 by all the importing 
     manufacturers described in subsection (c)(1).
       ``(B) Eligible wool products.--For purposes of subparagraph 
     (A), the term `eligible wool products' refers to imported 
     wool fiber or wool top described in subsection (c)(1).
       ``(C) Nonimporting manufacturers.--Each annual payment to a 
     nonimporting manufacturer described in subsection (c)(2) 
     shall be in an amount equal to one-half of the amount 
     determined by multiplying $597,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the purchases of imported eligible wool products in calendar 
     year 1999 by the nonimporting manufacturer making the claim, 
     and
       ``(ii) the denominator of which is the amount attributable 
     to the purchases of imported eligible wool products in 
     calendar year 1999 by all the nonimporting manufacturers 
     described in subsection (c)(2).
       ``(4) Letters of intent.--Except for the nonimporting 
     manufacturers described in subsections (b)(2) and (c)(2) who 
     may make claims under this section by virtue of the enactment 
     of the Wool Manufacturer Payment Clarification and Technical 
     Corrections Act, only manufacturers who, according to the 
     records of the Customs Service, filed with the Customs 
     Service before September 11, 2001, letters of intent to 
     establish eligibility to be claimants are eligible to make a 
     claim for a payment under this section.
       ``(5) Amount attributable to purchases by nonimporting 
     manufacturers.--
       ``(A) Amount attributable.--For purposes of paragraphs 
     (2)(C) and (3)(C), the amount attributable to the purchases 
     of imported eligible wool products in calendar year 1999 by a 
     nonimporting manufacturer shall be the amount the 
     nonimporting manufacturer paid for eligible wool products in 
     calendar year 1999, as evidenced by invoices. The 
     nonimporting manufacturer shall make such calculation and 
     submit the resulting amount to the Customs Service, within 45 
     days after the date of enactment of the Wool Manufacturer 
     Payment Clarification and Technical Corrections Act, in a 
     signed affidavit that attests that the information contained 
     therein is true and accurate to the best of the affiant's 
     belief and knowledge. The nonimporting manufacturer shall 
     retain the records upon which the calculation is based for a 
     period of five years beginning on the date the affidavit is 
     submitted to the Customs Service.
       ``(B) Eligible wool product.--For purposes of subparagraph 
     (A)--
       ``(i) the eligible wool product for nonimporting 
     manufacturers of worsted wool fabrics is wool yarn of the 
     kind described in heading 9902.51.13 of the Harmonized Tariff 
     Schedule of the United States purchased in calendar year 
     1999; and
       ``(ii) the eligible wool products for nonimporting 
     manufacturers of wool yarn or wool fabric are wool fiber or 
     wool top of the kind described in heading 9902.51.14 of such 
     Schedule purchased in calendar year 1999.
       ``(6) Amount attributable to duties paid.--For purposes of 
     paragraphs (1), (2)(A), and (3)(A), the amount attributable 
     to the duties paid by a manufacturer shall be the amount 
     shown on the records of the Customs Service as of September 
     11, 2001, under this section as then in effect.
       ``(7) Schedule of payments; reallocations.--
       ``(A) Schedule.--Of the payments described in paragraphs 
     (1), (2)(A), and (3)(A), the Customs Service shall make the 
     first and second installments on or before the date that is 
     45 days after the date of enactment of the Wool Manufacturer 
     Payment Clarification and Technical Corrections Act, and the 
     third installment on or before April 15, 2003. Of the 
     payments described in paragraphs (2)(C) and (3)(C), the 
     Customs Service shall make the first installment on or before 
     the date that is 45 days after the date of enactment of the 
     Wool Manufacturer Payment Clarification and Technical 
     Corrections Act, and the second installment on or before 
     April 15, 2003.
       ``(B) Reallocations.--In the event that a manufacturer that 
     would have received payment under subparagraph (A) or (C) of 
     paragraph (1), (2), or (3) ceases to be qualified for such 
     payment as such a manufacturer, the amounts otherwise payable 
     to the remaining manufacturers under such subparagraph shall 
     be increased on a pro rata basis by the amount of the payment 
     such manufacturer would have received.
       ``(8) Reference.--For purposes of paragraphs (1)(A) and 
     (6), the `records of the Customs Service as of September 11, 
     2001' are the records of the Wool Duty Unit of the Customs 
     Service on September 11, 2001, as adjusted by the Customs 
     Service to the extent necessary to carry out this section. 
     The amounts so adjusted are not subject to administrative or 
     judicial review.
       ``(e) Affidavits by Manufacturers.--
       ``(1) Affidavit required.--A manufacturer may not receive a 
     payment under this section for calendar year 2000, 2001, or 
     2002, as the case may be, unless that manufacturer has 
     submitted to the Customs Service for that calendar year a 
     signed affidavit that attests that, during that calendar 
     year, the affiant was a manufacturer in the United States 
     described in subsection (a), (b), or (c).
       ``(2) Timing.--An affidavit under paragraph (1) shall be 
     valid--
       ``(A) in the case of a manufacturer described in paragraph 
     (1), (2)(A), or (3)(A) of subsection (d) filing a claim for a 
     payment for calendar year 2000 or 2001, or both, only if the 
     affidavit is postmarked no later than 15 days after the date 
     of enactment of the Wool Manufacturer Payment Clarification 
     and Technical Corrections Act; and
       ``(B) in the case of a claim for a payment for calendar 
     year 2002, only if the affidavit is postmarked no later than 
     March 1, 2003.
       ``(f) Offsets.--Notwithstanding any other provision of this 
     section, any amount otherwise payable under subsection (d) to 
     a manufacturer in calendar year 2001 and, where applicable, 
     in calendar years 2002 and 2003, shall be reduced by the 
     amount of any payment received by that manufacturer under 
     this section before the enactment of the Wool Manufacturer 
     Payment Clarification and Technical Corrections Act.
       ``(g) Definition.--For purposes of this section, the 
     manufacturer is the party that owns--
       ``(1) imported worsted wool fabric, of the kind described 
     in heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff 
     Schedule of the United States, at the time the fabric is cut 
     and sewn in the United States into men's or boys' suits, 
     suit-type jackets, or trousers;
       ``(2) imported wool yarn, of the kind described in heading 
     9902.51.13 of such Schedule, at the time the yarn is 
     processed in the United States into worsted wool fabric; or
       ``(3) imported wool fiber or wool top, of the kind 
     described in heading 9902.51.14 of such Schedule, at the time 
     the wool fiber or wool top is processed in the United States 
     into wool yarn.''.
       (2) Funding.--There is authorized to be appropriated and is 
     appropriated, out of amounts in the General Fund of the 
     Treasury not otherwise appropriated, $36,251,000 to carry out 
     the amendments made by paragraph (1).

     SEC. 3202. CEILING FANS.

       (a) In General.--Notwithstanding any other provision of 
     law, ceiling fans classified under subheading 8414.51.00 of 
     the Harmonized Tariff Schedule of the United States imported 
     from Thailand shall enter duty-free and without any 
     quantitative limitations, if duty-free treatment under title 
     V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.) would 
     have applied to such entry had the competitive need 
     limitation been waived under section 503(d) of such Act.
       (b) Applicability.--The provisions of this section shall 
     apply to ceiling fans described in subsection (a) that are 
     entered, or withdrawn from warehouse for consumption--
       (1) on or after the date that is 15 days after the date of 
     enactment of this Act; and
       (2) before July 30, 2002.

     SEC. 3203. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS 
                   USED IN NUCLEAR FACILITIES.

       (a) In General.--Subheading 9902.84.02 of the Harmonized 
     Tariff Schedule of the United States is amended--
       (1) by striking ``4.9%'' and inserting ``Free''; and
       (2) by striking ``12/31/2003'' and inserting ``12/31/
     2006''.
       (b) Effective Date.--
       (1) In general.--The amendments made by subsection (a) 
     shall apply to goods entered, or withdrawn from warehouse for 
     consumption, on or after January 1, 2002.
       (2) Retroactive application.--Notwithstanding section 514 
     of the Tariff Act of 1930 or any other provision of law, and 
     subject to paragraph (4), the entry of any article--
       (A) that was made on or after January 1, 2002, and
       (B) to which duty-free treatment would have applied if the 
     amendment made by this section had been in effect on the date 
     of such entry,

     shall be liquidated or reliquidated as if such duty-free 
     treatment applied, and the Secretary of the Treasury shall 
     refund any duty paid with respect to such entry.
       (3) Entry.--As used in this subsection, the term ``entry'' 
     includes a withdrawal from warehouse for consumption.
       (4) Requests.--Liquidation or reliquidation may be made 
     under paragraph (2) with respect to an entry only if a 
     request therefor is filed with the Customs Service, within 
     180 days after the date of the enactment of this Act, that 
     contains sufficient information to enable the Customs 
     Service--
       (A) to locate the entry; or
       (B) to reconstruct the entry if it cannot be located.
                                  ____

  SA 3387. Mr. DORGAN (for himself and Mr. Craig) proposed an amendment 
to amendment SA 3386 proposed by Mr. Daschle to the bill (H.R. 3009) to 
extend the Andean Trade Preference Act, to grant additional trade 
benefits under that Act, and for other purposes; as follows:

       At the appropriate place, insert the following:

     SEC. ____. SECRET TRIBUNALS.

       (a) Findings.--Congress makes the following findings:

[[Page S3688]]

       (1) Chapter Eleven of the North American Free Trade 
     Agreement (``NAFTA'') allows foreign investors to file claims 
     against signatory countries that directly or indirectly 
     nationalize or expropriate an investment, or take measures 
     ``tantamount to nationalization or expropriation'' of such an 
     investment.
       (2) Foreign investors have filed several claims against the 
     United States, arguing that regulatory activity has been 
     ``tantamount to nationalization or expropriation''. Most 
     notably, a Canadian chemical company claimed $970,000,000 in 
     damages allegedly resulting from a California State 
     regulation banning the use of a gasoline additive produced by 
     that company.
       (3) A claim under Chapter Eleven of the NAFTA is 
     adjudicated by a three-member panel, whose deliberations are 
     largely secret.
       (4) While it may be necessary to protect the 
     confidentiality of business sensitive information, the 
     general lack of transparency of these proceedings has been 
     excessive.
       (b) Purpose.--The purpose of this amendment is to ensure 
     that the proceedings of the NAFTA investor protection 
     tribunals are as transparent as possible, consistent with the 
     need to protect the confidentiality of business sensitive 
     information.
       (c) Chapter 11 of NAFTA.--The President shall negotiate 
     with Canada and Mexico an amendment to Chapter Eleven of the 
     NAFTA to ensure the fullest transparency possible with 
     respect to the dispute settlement mechanism in that Chapter, 
     consistent with the need to protect information that is 
     classified or confidential, by--
       (1) ensuring that all requests for dispute settlement under 
     Chapter Eleven are promptly made public;
       (2) ensuring that with respect to Chapter Eleven--
       (A) all proceedings, submissions, findings, and decisions 
     are promptly made public; and
       (B) all hearings are open to the public; and
       (3) establishing a mechanism under that Chapter for 
     acceptance of amicus curiae submissions from businesses, 
     unions, and nongovernmental organizations.
       (d) Certification Requirements.--Within one year of the 
     enactment of this Act, the U.S. Trade Representative shall 
     certify to Congress that the President has fulfilled the 
     requirements set forth in subsection (c).

                          ____________________