[Congressional Record Volume 148, Number 87 (Wednesday, June 26, 2002)]
[House]
[Pages H3961-H4020]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RELATING TO CONSIDERATION OF SENATE AMENDMENT TO H.R. 3009, ANDEAN
TRADE PROMOTION AND DRUG ERADICATION ACT
The SPEAKER pro tempore (Mr. LaHood). The gentleman from New York
(Mr. Reynolds) has 10\1/2\ minutes remaining, and the gentleman from
Florida (Mr. Hastings) has 4 minutes remaining.
{time} 1615
Mr. REYNOLDS. Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS of Florida. Mr. Speaker, I reserve the balance of my
time and ask the gentleman, because of the imbalance of time, if he
would proceed with some of his speakers. We have but two speakers
remaining.
Mr. REYNOLDS. Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS of Florida. Mr. Speaker, I reserve the balance of my
time.
Mr. REYNOLDS. Mr. Speaker, for the gentleman who is managing the
minority side of the rule, I intend to have him speak. I then intend to
have the Chairman of the Committee on Rules close. There will be no
further speakers other than I as the manager of the rule.
Mr. HASTINGS of Florida. Mr. Speaker, I am very pleased to yield 3
minutes to the distinguished gentlewoman from California (Ms. Pelosi),
my good friend, the Democratic whip.
Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding me the
time and for his brilliant arguments against this outrageous rule,
which I rise not only to oppose but to implore my colleagues on both
sides of the aisle to disassociate themselves from.
This is not a rule proposed by the Grand Old Party. This is not about
Republicans in our country. This rule is outrageous. It is a rule that
limits freedom in this, the people's House.
Every child in school learns how laws are made. They visit here, this
temple of democracy, and yet what is happening here today is to shred
that book.
American people think of this as the people's House, where issues and
policies are debated, a marketplace of ideas. They do not think of it
as a place of bait and switch. This House voted on a bill; I opposed
it. It won by one vote, but it would be the House's bill to go to
conference.
Because the majority did not like how the other body treated this
same legislation on trade promotion, they decided that they would usurp
the power of this House and give that power to one person to go to the
Committee on Rules and have over 50 pages of changes on a 191-page
rule, that by passing the rule my colleagues are deeming those
provisions passed, provisions that have never been debated and
considered in this House. We might as well tear up the book on how a
bill is passed in terms of process, in terms of precedent, in terms of
policy.
This is a very dark day for the House of Representatives. We had all
hoped, many of us, that the bill would come back in the form we could
have a great amount of support for, to give the President trade
promotion authority. Instead of doing that, the chairman of the
Committee on Ways and Means has made matters worse with this outrageous
procedure and this outrageous bill.
We are the model of democracy to the world, to the world. The world
is watching what we do here. Young children study what we do here; and
instead of being an example, we are a place where today freedom and
democratic debate are being greatly diminished.
It is no wonder the gentleman from New York has no speakers on this
rule. It is no wonder that in the course of the debate many people
spoke up to defend the minority position and only two people could
speak in favor of this rule. It is an embarrassment to this House, and
it should be an embarrassment to the Republican party.
Why do we not want to have this debate in the light of day instead of
just by stealth into the Committee on Rules and on to this floor?
Because this is a disgrace and a disservice, a disservice to American
workers. It deprives them of the debate on their health benefits, on
workers' rights.
We can come together in a bipartisan way. I implore my colleagues to
reject this outrageous rule. Vote no.
Mr. REYNOLDS. Mr. Speaker, I yield as much time as he may consume to
the gentleman from California (Mr. Thomas).
Mr. THOMAS. Mr. Speaker, I ask unanimous consent that a colloquy
between the gentleman from Mississippi (Mr. Pickering) and myself be
made a part of the Record.
Mr. HASTINGS of Florida. Mr. Speaker, I reserve the right to object.
The SPEAKER pro tempore (Mr. LaHood). Under the rules, that cannot be
done by unanimous consent.
Mr. REYNOLDS. Mr. Speaker, how much time remains?
The SPEAKER pro tempore. The gentleman from New York (Mr. Reynolds)
has 10\1/2\ minutes remaining. The gentleman from Florida (Mr.
Hastings) has 1 minute remaining.
Mr. REYNOLDS. Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS of Florida. Mr. Speaker, I am very pleased to yield the
remaining time of the minority to the distinguished gentleman from New
York (Mr. Rangel), the ranking member of the Committee on Ways and
Means, my good friend.
Mr. RANGEL. Mr. Speaker, there is a way to get out of this dilemma in
an attempt to restore some degree of bipartisanship to a trade bill.
This is what we enjoyed when we were dealing with the Caribbean Basin
Initiative, with China, with the African Growth and Opportunity bill.
We worked out our differences; and even though we disagreed, we were
not disagreeable.
The problem that we have here is not one of substance. We have one
that the integrity of the House of Representatives is on, and I am
saying that history will not treat us kindly if, for the first time in
over 200 years of the House of Representatives, we attempt to take
substantive legislation and have the Committee on Rules roll it up into
a rule and to have us vote on it.
True, the Chairman of the Committee on Ways and Means will tell my
colleagues that 80 percent of this has already been passed one way or
the other by the House, but what about the 20 percent? When does the 20
percent become 30 percent or 40 percent? This did happen once before,
and that is when the House was closed down. There was no way to
communicate with the Senate, and we did use the Committee on Rules in
order to legislate.
But I ask my colleagues to vote down the rule. Let us do it the right
way.
Mr. REYNOLDS. Mr. Speaker, I yield 1 minute to the gentleman from
Mississippi (Mr. Pickering) for the purposes of entertaining a
colloquy.
Mr. PICKERING. Mr. Speaker, I would like to inquire about the impact
of the hybrid cutting provision with respect to CBI that is contained
in the amendment. As my colleagues know, the amendment contains
language requiring that apparel made of U.S. knit or woven fabric
assembled in the CBI qualifies for benefits only if the U.S. knit or
woven fabric is dyed and finished in the United States. The hybrid
cutting provision allows benefits under CBI if apparel is made of
components cut in the United States and in the CBI of fabric wholly
formed in the United States from yarns wholly formed in the United
States.
Is it my colleague's understanding that the dyeing and finishing
requirements for U.S. fabric contained in the amendment also apply to
the hybrid cutting provision?
Mr. THOMAS. Mr. Speaker, will the gentleman yield?
Mr. PICKERING. I yield to the gentleman from California.
Mr. THOMAS. Mr. Speaker, I tell the gentleman from Mississippi, the
answer is an unequivocal yes.
Mr. REYNOLDS. Mr. Speaker, I yield myself such time as I may consume.
While the rest of the world speeds ahead when it comes to free trade,
the United States desperately needs to get back on track. Trade
promotion authority is the most effective way to accomplish that, and
this rule simply allows the process to move forward so we can get one
step closer to retaining and regaining America's global trade pre-
eminence.
I ask my colleagues to join me in freeing the hands of our conferees
and not restrict our ability to negotiate before they even get to the
table. That is why I have urged a yes for this resolution; and when the
end of the day comes for a vote in moments, it is going to come down to
either my colleagues supported free trade and they
[[Page H3962]]
have sent that message back to their district and across America or
they rejected it. That is what this comes down to, an up or down, yes
or no, free trade or no. My colleagues are not going to continue it.
Mr. Speaker, I yield such time as he may consume to the gentleman
from California (Mr. Dreier), who is the Chairman of the Committee on
Rules and an expert on trade.
Mr. DREIER. Mr. Speaker, I would like to begin by congratulating the
gentleman from New York (Mr. Reynolds) for his fine management of this
rule. I have had the honor of participating in and witnessing some of
the greatest debates that have taken place in the greatest deliberative
body known to man, the United States Congress.
The very best, the very best that I can say about this debate that we
have gone through today is that it has been interesting. It has not
been a great debate because my colleagues on the other side of the
aisle who love to stand up and talk about their strong support of free
trade and their desire to open up new markets have said we are for
giving the President this authority but not this measure.
Now as we have listened to the debate that has come from the other
side of the aisle, I have heard people say this is a violation of
article 1, section 8 of the Constitution. I have heard this described
as a self-executing rule. I have heard all kinds of mischaracterization
of what it is that we have done here.
I never said that it was unprecedented. We went back and looked at
the record. I said it was unusual. I think what was done in the United
States Senate was unprecedented, and that is why we have responded with
an unusual procedure here.
We are trying to strengthen the hands of our negotiators so that the
prerogatives of this institution, the people's House, the body which my
friend the gentleman from Illinois (Mr. Crane) referred to this morning
in a meeting as the most important of our Federal branches of
government, the people's House, our prerogatives need to be recognized.
We are not passing laws here. This is nothing more than a motion to
go to conference, and in 1996 a similar procedure was followed, and we
regularly followed the procedure of passing motions to go to
conference.
I will admit that there is quite a bit attached to this, but when we
saw the United States Senate do what it did, we had little choice other
than take the action that we are taking today.
As we look at the challenges, as we look at the challenges that we
have before us, we all know that this economy is facing real
difficulty. We know that 95 percent of the world's consumers are
outside of our border, and we know that unless we do what we can to
open up those markets we are not going to have the opportunity to
create jobs for the American worker.
As I listened to my colleagues again mischaracterize the North
American Free Trade Agreement, talking about its failure, we have seen
a doubling of trade between the United States and Mexico since its
passage. We have seen the middle-class population in Mexico grow to be
larger than the entire Canadian population.
{time} 1630
It has been a win-win.
And it is true, we want to expand the North American Free Trade
Agreement to a free trade area, the Americas. A lot of us here, Mr.
Speaker, are interested in seeing the technology sector of our economy
improve. We faced a real downturn there, and it has hurt our overall
economy because so much of the GDP growth in the past several years has
come from that sector of the economy.
Let us look at what a free trade area, the Americas, would bring us.
There are about 12 million computers south of the border, but 500
million people. We need to do what we can to open up those markets.
The Andean Trade Preference Act is designed to help wean those in the
Andean nations off of the crops of drugs, and so what we need to do is
realize that ATPA is very important in dealing with that battle that we
face today.
So while many people can make all of these arguments procedurally
against this, which really do not stand the test of what we are doing
here at all, I believe that if my colleagues are for increased economic
growth here in the United States of America, if they are for realizing
that this is a bicameral legislature and we have the prerogatives of
the House that need to be followed, and if they are committed to doing
everything that we possibly can to make sure that the United States of
America, at this time of war, plays its proper role as the paramount
global leader, they will vote in support of this rule, because it is
the right thing to do.
Mr. REYNOLDS. Mr. Speaker, is there any further time on the minority
side?
The SPEAKER pro tempore (Mr. LaHood). The time of the gentleman from
Florida has expired.
Mr. BLUMENAUER. Mr. Speaker, I urge my colleagues to defeat this
Self-Executing Rule governing the house conferees on trade promotion
authority, because it sets a terrible precedent. It could well be the
worst abuse of the legislative process since the Republican party took
control of the House in 1994. Newt Gingrich would have howled in
outrage if the previous Democratic majority has attempted such a
maneuver; and it would have been appropriate outrage.
It is shameful to treat this body in such a fashion--tying the hands
of House conferees, adding new provisions without any opportunity of
fairly debate their merits. This behavior abuses the American people as
well as this House. It will come back to haunt the Republican majority.
I support free trade because it strengthens the economy of my city
and state and the country as a whole. I have been unable to support the
Administration and House leadership position because they have ignored
legimate environmental and labor concerns.
Now this rule would further damage the cause of trade by committing
this House to reject improvements in Trade Adjustment Assistance that
were made by the Senate.
There are dislocations that occur as our economy changes in response
to new markets and new imports. Some workers are hurt in that process,
and Trade Adjustment Assistance is critical to ensuring that we move as
quickly and painlessly as possible to extend the benefits of trade to
all American families.
The provisions of this rule reject in advance important improvements
in TAA that the Senate made and that must be part our trade agenda:
Health Care for workers unemployed due to trade dislocations. This
Substitute unilaterally rolls back the health care benefits contained
in the Senate bill--and puts in their place a reduced level of support
that is harder to obtain because of a means-testing requirement.
Job training and relocation assistance: The Senate bill doubles this
funding (to $300 million), reflecting the fact that TAA chronically
runs out of money early in the year. So far this year, 12 states--
including Oregon--have already ran out of TAA money. This proposed rule
would strip this money, forcing continued funding shortfalls for TAA.
This is a critical issue for my State. Currently, more than 600
Oregon workers have been certified by the Department of Labor as being
eligible for Trade Adjustment Assistance (TAA) or NAFTA benefits but
are not receiving those benefits due to a lack of resources. Trade
assistance petitions are pending for 35 companies, and additional
layoffs are expected from several companies that have previously been
certified as eligible for assistance. However, the state of Oregon
received only 25 percent of the amount it requested under the trade
program. As a result, the state exhausted its funds at the end of
April, and has been unable to grant any more requests for assistance.
Already 200 laid-off Oregonians are on the waiting list for job
training and relocation assistance, with hundreds more expected to
apply in the fall.
Were we to approve this motion we would send exactly the wrong
message to the people of my state and the rest of America: that trade
is about creating winners and losers, and the losers are on their own.
Mr. ACEVEDO-VILA. Mr. Speaker, As the House moves toward conference
on the trade package, I want to bring to the attention of my colleagues
a report from the International Trade Commission (ITC) on the impacts
of tariff modifications for tuna imported from Andrean beneficiaries.
The results of this analysis are quite clear, and they support what I
and my good friend from American Samoa have been saying all along--that
the proposed duty free treatment of tuna contained in the House passed
bill will create only a limited amount of jobs in Ecuador, but the
effect on workers in the domestic fishing and processing industry will
be severe. Thousands of jobs in American Samoa, California, and Puerto
Rico are at stake. All for a few hundred jobs in Ecuador at 77 cents an
hour.
[[Page H3963]]
While I support the intent of the Andean Trade Preference Act (ATPA),
exempting tuna will not provide intended benefits to Ecuadorian
workers. Instead, it will help a multinational corporation increase its
profit margin at the cost of thousands of American jobs.
I ask the conferees to consider the limited benefits of the proposed
tariff modifications on the workers in Ecuador and compare them with
the harsh reality of significant job loss for American workers.
Consider the strong warnings of Senators against undermining our
relationship with ASEAN countries such as the Philippines, a close and
important ally in our war against terror.
The current duty structure on tuna over the past decade has created
tremendous growth in the Andean tuna industry. For example, over the
past ten years the number of tuna factories as increased 229%,
production capacity has increased 400% and exports to the U.S. have
increased 567%. Clearly the current tariff structure for tuna has been
a huge success for the Andean region.
I have been working with Bumble Bee Seafoods to ensure continued
operations in Mayaguez, Puerto Rico. Based on close cooperation between
the Puerto Rican government and Bumble Bee Seafoods, Bumble Bee now
anticipates that it will be able to maintain a workforce in excess of
500 people. This is higher than the 300 originally anticipated and
ensures that the tuna industry will continue to be an important part of
the Puerto Rican industrial sector. The key risk to the continuation
and growth of the industry in Puerto Rico and elsewhere in the United
States is the tariff modifications being considered under APTA. Changes
to the existing tariff structure, under which significant industry
growth has been realized in Ecuador, will have an immediate and lasting
impact on tuna industry employment not only in Puerto Rico but also in
California and American Samoa.
The conferees on this important package should consider the impact
tariff modifications will have on workers and fisherman in Puerto Rico,
California, and American Samoa. The potential benefits for Ecuador
simply do not justify the significant costs that will be brought to
bear on the domestic processing and fishing industry. The current
tariff structure has resulted in tremendous growth for Ecuador in this
industry.
With the above stated reasons in mind, I respectfully ask the
conferees to strike tuna from the list of items for duty free treatment
under the ATPA.
In regards to rum, congress and past Administrations have repeatedly
recognized that rum is a product of unique and critical importance to
Puerto Rico and neighboring island jurisdictions that benefit from the
Caribbean Basin initiative (``CBI''). The current duty structure for
rum is the result of a compromise reached in 1997 among the United
States, the European Union and Caribbean governments and producers.
This compromise balanced the phase-out of tariffs for higher-value rum
with the maintenance of essential duties on low-value rum. Congress and
the Administration should continue this wise policy. I ask that
conferees assure that rum continues to be excluded from duty-free
treatment under the ATPDEA and that low-value rum is not part of future
tariff negotiations in the context of the Free Trade Area of the
Americas (``FTAA'').
Finally and, perhaps most importantly, there is a compelling economic
case for retaining current duties on low-value rum. Economic analysis
on the probable economic effects of eliminating rum tariffs reaches a
stark conclusion--that the grant of duty-free treatment for low-value
rum would enable Brazil, Colombia and other regional producers to use
their many natural resource advantages and massive excess production
capacity to displace Caribbean producers of low-value rum and thereby
destroy this important Caribbean industry. This is precisely the same
finding that Congress made in 1991 when it added the current rum
exclusion to the ATPA and argues strongly for maintaining the current
tariff structure for rum.
I respectfully ask that Conferees take these concerns into account
and support the House position on the treatment of low-valued rum under
ATPA. Congress must not allow these trade initiatives to undermine
carefully considered and longstanding U.S. policy in support of tariff
protections for low-value rum produced in Puerto Rico and elsewhere in
the Caribbean.
Mr. REYNOLDS. Mr. Speaker, I urge a ``yes'' vote on the resolution, I
yield back the balance of my time, and I move the previous question on
the resolution.
The previous question was ordered.
The SPEAKER pro tempore. The question is on the resolution.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. HASTINGS of Florida. Mr. Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on adopting House Resolution 450 will be followed by 5-
minute votes on motions to suspend the rules on H.R. 3764 and on H.R.
3180; and perhaps on H. Con. Res. 424 and H.R. 3034.
The vote was taken by electronic device, and there were--yeas 216,
nays 215, answered ``present'' 1, not voting 3, as follows:
[Roll No. 264]
YEAS--216
Aderholt
Akin
Armey
Bachus
Baker
Barr
Bartlett
Barton
Bass
Bereuter
Biggert
Bilirakis
Blunt
Boehlert
Boehner
Bonilla
Bono
Boozman
Brady (TX)
Brown (SC)
Bryant
Burr
Burton
Buyer
Callahan
Calvert
Camp
Cannon
Cantor
Carson (OK)
Castle
Chabot
Chambliss
Collins
Combest
Cooksey
Cox
Crane
Crenshaw
Cubin
Culberson
Cunningham
Davis (FL)
Davis, Jo Ann
Davis, Tom
Deal
DeLay
Diaz-Balart
Dooley
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Everett
Ferguson
Flake
Fletcher
Foley
Forbes
Fossella
Frelinghuysen
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goodlatte
Goss
Granger
Graves
Green (WI)
Greenwood
Grucci
Gutknecht
Hall (TX)
Hansen
Hart
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hulshof
Hunter
Hyde
Isakson
Issa
Istook
Jenkins
John
Johnson (CT)
Johnson (IL)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
Kerns
King (NY)
Kingston
Kirk
Knollenberg
Kolbe
LaHood
Latham
LaTourette
Leach
Lewis (CA)
Lewis (KY)
Linder
Lucas (KY)
Lucas (OK)
Manzullo
Matheson
McCrery
McInnis
McKeon
Mica
Miller, Dan
Miller, Gary
Miller, Jeff
Moran (KS)
Morella
Myrick
Nethercutt
Ney
Northup
Nussle
Osborne
Ose
Otter
Oxley
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Portman
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reynolds
Riley
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Royce
Ryan (WI)
Ryun (KS)
Saxton
Schaffer
Schrock
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherwood
Shimkus
Shuster
Simpson
Skeen
Smith (TX)
Snyder
Souder
Stearns
Stenholm
Stump
Sullivan
Sununu
Sweeney
Tancredo
Tanner
Tauzin
Taylor (NC)
Terry
Thomas
Thornberry
Thune
Tiahrt
Tiberi
Toomey
Upton
Vitter
Walden
Walsh
Wamp
Watkins (OK)
Watts (OK)
Weldon (FL)
Weller
Whitfield
Wicker
Wilson (NM)
Wolf
Young (AK)
Young (FL)
NAYS--215
Abercrombie
Ackerman
Allen
Andrews
Baca
Baird
Baldacci
Baldwin
Ballenger
Barcia
Barrett
Becerra
Bentsen
Berkley
Berman
Berry
Bishop
Blagojevich
Blumenauer
Bonior
Borski
Boswell
Boucher
Boyd
Brady (PA)
Brown (FL)
Brown (OH)
Capito
Capps
Capuano
Cardin
Carson (IN)
Clay
Clayton
Clement
Clyburn
Coble
Condit
Conyers
Costello
Coyne
Cramer
Crowley
Cummings
Davis (CA)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
DeMint
Deutsch
Dicks
Dingell
Doggett
Doyle
Edwards
Engel
Eshoo
Etheridge
Evans
Farr
Fattah
Filner
Ford
Frank
Frost
Gephardt
Gonzalez
Goode
Gordon
Graham
Green (TX)
Gutierrez
Hall (OH)
Harman
Hastings (FL)
Hayes
Hilliard
Hinchey
Hinojosa
Hoeffel
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson, E. B.
Jones (OH)
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
Kind (WI)
Kleczka
Kucinich
LaFalce
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
LoBiondo
Lofgren
Lowey
Luther
Lynch
Maloney (CT)
Maloney (NY)
Markey
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McDermott
McGovern
McHugh
McIntyre
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Millender-McDonald
Miller, George
Mink
Mollohan
Moore
Moran (VA)
Murtha
Nadler
Napolitano
Neal
Norwood
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Phelps
Pomeroy
Price (NC)
Quinn
Rahall
Rangel
Reyes
Rivers
Rodriguez
Roemer
Ross
Rothman
[[Page H3964]]
Roybal-Allard
Rush
Sabo
Sanchez
Sanders
Sandlin
Sawyer
Schakowsky
Schiff
Scott
Serrano
Sherman
Shows
Simmons
Skelton
Slaughter
Smith (NJ)
Smith (WA)
Solis
Spratt
Stark
Strickland
Stupak
Tauscher
Taylor (MS)
Thompson (CA)
Thompson (MS)
Thurman
Tierney
Towns
Turner
Udall (CO)
Udall (NM)
Velazquez
Visclosky
Waters
Watson (CA)
Watt (NC)
Waxman
Weiner
Weldon (PA)
Wexler
Wilson (SC)
Woolsey
Wu
Wynn
ANSWERED ``PRESENT''--1
Paul
NOT VOTING--3
Roukema
Smith (MI)
Traficant
{time} 1657
Mr. Gibbons changed his vote from ``nay'' to `` yea.''
So the resolution was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
The SPEAKER pro tempore (Mr. LaHood). Pursuant to House Resolution
450, the House concurs in the Senate amendment to H.R. 3009 with an
amendment, insists on the House amendment to the Senate amendment, and
requests a conference with the Senate thereon.
The text of the Senate amendment is as follows:
Senate amendment:
Strike out all after the enacting clause and insert:
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 4 divisions as
follows:
(1) Division a.--Trade Adjustment Assistance.
(2) Division b.--Bipartisan Trade Promotion Authority.
(3) Division c.--Andean Trade Preference Act.
(4) Division d.--Extension of Certain Preferential Trade
Treatment and Other Provisions.
(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 CARE 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.
Sec. 1137. Authorization of appropriations for Customs staffing.
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. Duty suspension on wool.
Sec. 3203. Ceiling fans.
Sec. 3204. Certain steam or other vapor generating boilers used in
nuclear facilities.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER
PROVISIONS
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
Sec. 4101. Generalized system of preferences.
Sec. 4102. Amendments to generalized system of preferences.
TITLE XLII--OTHER PROVISIONS
Sec. 4201. Transparency in NAFTA tribunals.
Sec. 4202. Expression of solidarity with Israel in its fight against
terrorism.
Sec. 4203. Limitation on use of certain revenue.
Sec. 4204. Sense of the Senate regarding the United States-Russian
Federation summit meeting, May 2002.
Sec. 4205. No appropriations.
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:
[[Page H3965]]
``(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 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, if the
certification of eligibility under section 231(a)(1) is based
on an increase in imports from, or a shift in production to,
Canada or Mexico.
``(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.
``(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
[[Page H3966]]
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 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. 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
[[Page H3967]]
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--
``(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.
``(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.);
``(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).
``(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;
``(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
[[Page H3968]]
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.
``(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.
``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 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.
[[Page H3969]]
``(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.
``(D) Additional weeks for remedial education.--
Notwithstanding any other provision of this section, in order
to assist an adversely affected worker to complete training
approved for the worker under section 240, if the program is
a program of remedial education in accordance with
regulations prescribed by the Secretary, payments may be made
as trade adjustment allowances for up to 26 additional weeks
in the 26-week period that follows the last week of
entitlement to trade adjustment allowances otherwise payable
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 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.
[[Page H3970]]
``(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. 240A. JOB TRAINING PROGRAMS.
``(a) Grant Program Authorized.--The Secretary is
authorized to award grants to community colleges (as defined
in section 202 of the Tech-Prep Education Act (20 U.S.C.
2371)) on a competitive basis to establish job training
programs for adversely affected workers.
``(b) Application.--
``(1) Submission.--To receive a grant under this section, a
community college shall submit an application to the
Secretary at such time and in such manner as the Secretary
shall require.
``(2) Contents.--The application submitted under paragraph
(1) shall provide a description of--
``(A) the population to be served with grant funds received
under this section;
``(B) how grant funds received under this section will be
expended; and
``(C) the job training programs that will be established
with grant funds received under this section, including a
description of how such programs relate to workforce needs in
the area where the community college is located.
``(c) Eligibility.--To be eligible to receive a grant under
this section, a community college shall be located in an
eligible community (as defined in section 271).
``(d) Decision on Applications.--Not later than 30 days
after submission of an application under subsection (b), the
Secretary shall approve or disapprove the application.
``(e) Use of Funds.--A community college that receives a
grant under this section shall use the grant funds to
establish job training programs for adversely affected
workers.
``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.
``(C) Application.--The worker has filed an application for
the allowance with the Secretary before--
[[Page H3971]]
``(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, and the States shall
implement, 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 on a full-time basis as defined by State
law in the State in which the worker is employed; 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
$5,000 a year for each year of 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 $50,000,000.
``(7) Termination.--
``(A) In general.--Except as provided in subparagraph (B),
no payments may be made under this subsection after the date
that is 2 years after the date on which the program under
this subsection is implemented in the State under paragraph
(1).
``(B) Exception.--Notwithstanding subparagraph (A), a
worker receiving payments under this subsection on the date
described in subparagraph (A) shall continue to receive such
payments for as long as the worker meets the eligibility
requirements of this subsection.
``(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 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.
[[Page H3972]]
``(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
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:
[[Page H3973]]
``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 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;
[[Page H3974]]
``(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.
``(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
[[Page H3975]]
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--
``(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.--
[[Page H3976]]
``(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 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
[[Page H3977]]
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 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 70 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) 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 individual 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.--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.
[[Page H3978]]
``(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:
``(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)(4)(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 (4)(B)) in enrolling in
health insurance coverage through--
[[Page H3979]]
``(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 (4)(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.--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.
``(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) 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.--The
Secretary shall ensure that funds made available under
section 174(c)(1)(A) to carry out subsection (a)(4)(A) are
available to States throughout the period described in
section 174(c)(2)(A).
``(4) 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.--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.
``(C) Other specified coverage.--With respect to any
individual, 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.
``(H) Standard loss ratio.--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 with respect to the
pool of insured individuals in each such type of coverage for
such year; divided by
``(ii) the premiums paid for enrollment in each such
coverage for such year.
``(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 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.
[[Page H3980]]
``(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.--The
Secretary shall ensure that funds made available under
section 174(c)(1)(B) to carry out subsection (a)(4)(B) are
available to States throughout the period described in
section 174(c)(2)(B).
``(5) Definition of eligible worker.--In this subsection,
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).''.
(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) 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 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. 240A. Job training programs.
``Sec. 241. Job search allowances.
``Sec. 242. Relocation allowances.
``Sec. 243. Supportive services; wage insurance.
[[Page H3981]]
``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.''.
(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
[[Page H3982]]
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 ``September 30, 2003'' and inserting ``December
31, 2010''.
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.
(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''.
[[Page H3983]]
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 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
[[Page H3984]]
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.
SEC. 1137. AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS
STAFFING.
There are authorized to be appropriated to the Department
of Treasury such sums as may be necessary to provide an
increase in the annual rate of basic pay--
(1) for all journeyman Customs inspectors and Canine
Enforcement Officers who have completed at least one year's
service and are receiving an annual rate of basic pay for
positions at GS-9 of the General Schedule under section 5332
of title 5, United States Code, from the annual rate of basic
pay payable for positions at GS-9 of the General Schedule
under section 5332, to an annual rate of basic pay payable
for positions at GS-11 of the General Schedule under such
section 5332; and
(2) for the support staff associated with the personnel
described in subparagraph (A), at the appropriate GS level of
the General Schedule under such section 5332.
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.
``(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.
[[Page H3985]]
SEC. 1143. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND IN
OUTBOUND MAIL.
(a) In General.--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 (relating to exportation of controlled substances)
(21 U.S.C. 953).
``(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 Weighing in
Excess of 16 Ounces.--
``(1) In general.--Mail weighing in excess of 16 ounces
sealed against inspection under the postal laws and
regulations of the United States may be searched by a Customs
officer, subject to paragraph (2), if there is 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) Limitation.--No person acting under the 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
of the Federal Rules of Criminal Procedure; or
``(B) the sender or addressee has given written
authorization for such reading.
``(d) Search of Mail Sealed Against Inspection Weighing 16
Ounces or Less.--Notwithstanding any other provision of this
section, subsection (a)(1) shall not apply to mail weighing
16 ounces or less sealed against inspection under the postal
laws and regulations of the United States.''.
(b) Certification by Secretary.--Not later than 3 months
after the date of enactment of this section, the Secretary of
State shall determine whether the application of section 583
of the Tariff Act of 1930 to foreign mail transiting the
United States that is imported or exported by the United
States Postal Service is being handled in a manner consistent
with international law and any international obligation of
the United States. Section 583 of such Act shall not apply to
such foreign mail unless the Secretary certifies to Congress
that the application of such section 583 is consistent with
international law and any international obligation of the
United States.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect on the date of enactment of this Act.
(2) Certification with respect to foreign mail.--The
provisions of section 583 of the Tariff Act of 1930 relating
to foreign mail transiting the United States that is imported
or exported by the United States Postal Service shall not
take effect until the Secretary of State certifies to
Congress, pursuant to subsection (b), that the application of
such section 583 is consistent with international law and any
international obligation of the United States.
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.--
(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.
[[Page H3986]]
(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''.
(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;
[[Page H3987]]
(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 fortrade;
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 including motor vehicles and vehicle parts 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 foreign investors in the United States are not accorded
greater rights than United States 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;
(B) to secure fair, equitable, and nondiscriminatory market
access opportunities for United States persons that rely upon
intellectual property protection; and
(C) to respect the Declaration on the TRIPS Agreement and
Public Health, adopted by the World Trade Organization at the
Fourth Ministerial Conference at Doha, Qatar on November 14,
2001.
(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--
(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;
[[Page H3988]]
(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 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) Human rights and democracy.--The principal negotiating
objective regarding human rights and democracy is to obtain
provisions in trade agreements that require parties to those
agreements to strive to protect internationally recognized
civil, political, and human rights.
(13) 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.
(14) 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.
(15) WTO extended negotiations.--The principal negotiating
objectives of the United
[[Page H3989]]
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).
(16) Textile negotiations.--
(A) In general.--The principal negotiating objectives of
the United States with respect to trade in textiles and
apparel articles is to obtain competitive opportunities for
United States exports of textiles and apparel 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 textiles and apparel by--
(i) reducing to levels that are the same as, or lower than,
those in the United States, or eliminating, by a date
certain, tariffs or other charges that decrease market
opportunities for United States exports of textiles and
apparel;
(ii) eliminating by a date certain non-tariff barriers that
decrease market opportunities for United States textile and
apparel articles;
(iii) reducing or eliminating subsidies that decrease
market opportunities for United States exports or unfairly
distort textile and apparel markets to the detriment of the
United States;
(iv) developing, strengthening, and clarifying rules to
eliminate practices that unfairly decrease United States
market access opportunities or distort textile and apparel
markets to the detriment of the United States;
(v) 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;
(vi) 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;
(vii) otherwise ensuring that countries that accede to the
World Trade Organization have made meaningful market
liberalization commitments in textiles and apparel; and
(viii) taking into account the impact that agreements
covering textiles and apparel trade to which the United
States is already a party are having on the United States
textile and apparel industry.
(B) Scope of objective.--The negotiating objectives set
forth in subparagraph (A) apply with respect to trade in
textile and apparel articles to be addressed in any trade
agreement entered into under section 2103 (a) or (b),
including any trade agreement entered under section 2103 (a)
or (b) that provides for accession to a trade agreement to
which the United States is already a party.
(17) Worst forms of child labor.--The principal negotiating
objectives of the United States regarding the trade-related
aspects of the worst forms of child labor are--
(A) to prevent distortions in the conduct of international
trade caused by the use of the worst forms of child labor, in
whole or in part, in the production of goods for export in
international commerce; and
(B) to redress unfair and illegitimate competition based
upon the use of the worst forms of child labor, in whole or
in part, in the production of goods for export in
international commerce, including through--
(i) promoting universal ratification and full compliance by
all trading nations with ILO Convention No. 182 Concerning
the Prohibition and Immediate Action for the Elimination of
the Worst Forms of Child Labor, particularly with respect to
meeting enforcement obligations under that Convention and
related international agreements;
(ii) pursuing action under Article XX of GATT 1994 to allow
WTO members to restrict imports of goods found to be produced
with the worst forms of child labor;
(iii) seeking commitments by parties to any multilateral or
bilateral trade agreement that is entered into by the United
States to ensure that national laws reflect international
standards regarding prevention of the use of the worst forms
of child labor, especially in the conduct of international
trade; and
(iv) seeking commitments by trade agreement parties to
vigorously enforce laws prohibiting the use of the worst
forms of child labor, especially in the conduct of
international trade, through accessible, expeditious, and
effective civil, administrative, and criminal enforcement
mechanisms.
(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,
taking into account the impact on job security, the level of
compensation of new jobs and existing jobs, the displacement
of employment, and the regional distribution of employment,
utilizing experience from previous trade agreements and
alternative models of employment analysis, report to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate on such review,
and make that report available to the public;
(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 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
[[Page H3990]]
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.
(4) Limitations on trade authorities procedures.--
(A) In general.--Notwithstanding any other provision of
law, the provisions of section 151 of the Trade Act of 1974
(trade authorities procedures) shall not apply to any
provision in an implementing bill being considered by the
Senate that modifies or amends, or requires a modification
of, or an amendment to, any law of the United States that
provides safeguards from unfair foreign trade practices to
United States businesses or workers, including--
(i) imposition of countervailing and antidumping duties
(title VII of the Tariff Act of 1930; 19 U.S.C. 1671 et
seq.);
(ii) protection from unfair methods of competition and
unfair acts in the importation of articles (section 337 of
the Tariff Act of 1930; 19 U.S.C. 1337);
(iii) relief from injury caused by import competition
(title II of the Trade Act of 1974; 19 U.S.C. 2251 et seq.);
(iv) relief from unfair trade practices (title III of the
Trade Act of 1974; 19 U.S.C. 2411 et seq.); or
(v) national security import restrictions (section 232 of
the Trade Expansion Act of 1962; 19 U.S.C. 1862).
(B) Point of order in senate.--
(i) In general.--When the Senate is considering an
implementing bill, upon a point of order being made by any
Senator against any part of the implementing bill that
contains material in violation of subparagraph (A), and the
point of order is sustained by the Presiding Officer, the
part of the implementing bill against which the point of
order is sustained shall be stricken from the bill.
(ii) Waivers and appeals.--
(I) Waivers.--Before the Presiding Officer rules on a point
of order described in clause (i), any Senator may move to
waive the point of order and the motion to waive shall not be
subject to amendment. A point of order described in clause
(i) is waived only by the affirmative vote of a majority of
the Members of the Senate, duly chosen and sworn.
(II) Appeals.--After the Presiding Officer rules on a point
of order under this subparagraph, any Senator may appeal the
ruling of the Presiding Officer on the point of order as it
applies to some or all of the provisions on which the
Presiding Officer ruled. A ruling of the Presiding Officer on
a point of order described in clause (i) is sustained unless
a majority of the Members of the Senate, duly chosen and
sworn, vote not to sustain the ruling.
(III) Debate.--Debate on a motion to waive under subclause
(I) or on an appeal of the ruling of the Presiding Officer
under subclause (II) shall be limited to 1 hour. The time
shall be equally divided between, and controlled by, the
majority leader and the minority leader, or their designees.
(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
[[Page H3991]]
(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).
(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;
[[Page H3992]]
(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
(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 accordance with the
Bipartisan Trade Promotion
[[Page H3993]]
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. 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.
[[Page H3994]]
(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
(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
[[Page H3995]]
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. 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
[[Page H3996]]
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 clauses (ii) and (iii), 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 any article
accorded duty-free treatment under U.S. Note 2(b) to
subchapter II of chapter 98 of the HTS.
``(iii) Certain Footwear.--
``(I) In general.--Duties on any article described in
subclause (II), that is an ATPEA originating good imported
directly into the customs territory of the United States from
an ATPEA beneficiary country, shall be reduced by 1/15 a year
beginning on the date of enactment of the Andean Trade
Preference Expansion Act.
``(II) Articles described.--An article described in this
subclause means an 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 `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.
[[Page H3997]]
``(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.
``(viii) The extent to which the country has taken steps to
support the efforts of the United States to combat terrorism.
``(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.''.
(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:
[[Page H3998]]
``(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.--
``(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.--
[[Page H3999]]
``(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. DUTY SUSPENSION ON WOOL.
(a) Extension of Temporary Duty Reductions.--
(1) Heading 9902.51.11.-- Heading 9902.51.11 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(2) Heading 9902.51.12.-- Heading 9902.51.12 of the
Harmonized Tariff Schedule of the United States is amended--
(A) by striking ``2003'' and inserting ``2005''; and
(B) by striking ``6%'' and inserting ``Free''.
(3) Heading 9902.51.13.--Heading 9902.51.13 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(4) Heading 9902.51.14.--Heading 9902.51.14 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(b) Limitation on Quantity of Imports.--
(1) Note 15.--U.S. Note 15 to subchapter II of chapter 99
of the Harmonized Tariff Schedule of the United States is
amended--
(A) by striking ``from January 1 to December 31 of each
year, inclusive''; and
(B) by striking ``, or such other'' and inserting the
following: ``in calendar year 2001, 3,500,000 square meter
equivalents in calendar year 2002, and 4,500,000 square meter
equivalents in calendar year 2003 and each calendar year
thereafter, or such greater''.
(2) Note 16.--U.S. Note 16 to subchapter II of chapter 99
of the Harmonized Tariff Schedule of the United States is
amended--
(A) by striking ``from January 1 to December 31 of each
year, inclusive''; and
(B) by striking ``, or such other'' and inserting the
following: ``in calendar year 2001, 2,500,000 square meter
equivalents in calendar year 2002, and 3,500,000 square meter
equivalents in calendar year 2003 and each calendar year
thereafter, or such greater''.
(c) Extension of Duty Refunds and Wool Research Trust
Fund.--
(1) In general.--The United States Customs Service shall
pay each manufacturer that receives a payment under section
505 of the Trade and Development Act of 2000 (Public Law 106-
200) for calendar year 2002, and that provides an affidavit
that it remains a manufacturer in the United States as of
January 1 of the year of the payment, 2 additional payments,
each payment equal to the payment received for calendar year
2002 as follows:
(A) The first payment to be made after January 1, 2004, but
on or before April 15, 2004.
(B) The second payment to be made after January 1, 2005,
but on or before April 15, 2005.
(2) Conforming amendment.--Section 506(f) of the Trade and
Development Act of 2000 (Public Law 106-200) is amended by
striking ``2004'' and inserting ``2006''.
(3) Authorization.--There is authorized to be appropriated
and is appropriated out of amounts in the general fund of the
Treasury not otherwise appropriated such sums as are
necessary to carry out the provisions of this subsection.
(d) Effective Date.--The amendment made by subsection
(a)(2)(B) applies to goods entered, or withdrawn from
warehouse for consumption, on or after January 1, 2002.
SEC. 3203. 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. 3204. 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.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER
PROVISIONS
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
SEC. 4101. GENERALIZED SYSTEM OF PREFERENCES.
(a) Extension of Duty-Free Treatment Under System.--Section
505 of the Trade Act of 1974 (19 U.S.C. 2465) is amended by
striking ``September 30, 2001'' and inserting ``December 31,
2006''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date of enactment of this Act.
(c) Retroactive Application for Certain Liquidations and
Reliquidations.--
(1) In general.--
(A) Entry of certain articles.--Notwithstanding section 514
of the Tariff Act of 1930 or any other provision of law, and
subject to paragraph (2), the entry--
(i) of any article to which duty-free treatment under title
V of the Trade Act of 1974 would have applied if the entry
had been made on September 30, 2001;
(ii) that was made after September 30, 2001, and before the
date of enactment of this Act; and
(iii) to which duty-free treatment under title V of that
Act did not apply,
shall be liquidated or reliquidated as free of duty, and the
Secretary of the Treasury shall refund any duty paid with
respect to such entry.
(B) Entry.--In this subsection, the term ``entry'' includes
a withdrawal from warehouse for consumption.
(2) Requests.--Liquidation or reliquidation may be made
under paragraph (1) with respect to an entry only if a
request therefor is filed
[[Page H4000]]
with the Customs Service, within 180 days after the date of
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.
SEC. 4102. AMENDMENTS TO GENERALIZED SYSTEM OF PREFERENCES.
(a) Eligibility for Generalized System of Preferences.--
Section 502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C.
2462(b)(2)(F)) is amended by striking the period at the end
and inserting ``or such country has not taken steps to
support the efforts of the United States to combat
terrorism.''.
(b) Definition of Internationally Recognized Worker
Rights.--Section 507(4) of the Trade Act of 1974 (19 U.S.C.
2467(4)) is amended--
(1) by striking ``and'' at the end of subparagraph (D);
(2) by striking the period at the end of subparagraph (E)
and inserting ``; and'';
(3) by adding at the end the following new subparagraph:
``(F) a prohibition on discrimination with respect to
employment and occupation.''; and
(4) by amending subparagraph (D) to read as follows:
``(D) a minimum age for the employment of children, and a
prohibition on the worst forms of child labor, as defined in
paragraph (6);''.
TITLE XLII--OTHER PROVISIONS
SEC. 4201. TRANSPARENCY IN NAFTA TRIBUNALS.
(a) Findings.--Congress makes the following findings:
(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
date of 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).
SEC. 4202. EXPRESSION OF SOLIDARITY WITH ISRAEL IN ITS FIGHT
AGAINST TERRORISM.
(a) Findings.--Congress makes the following findings:
(1) The United States and Israel are now engaged in a
common struggle against terrorism and are on the frontlines
of a conflict thrust upon them against their will.
(2) President George W. Bush declared on November 21, 2001,
``We fight the terrorists and we fight all of those who give
them aid. America has a message for the nations of the world:
If you harbor terrorists, you are terrorists. If you train or
arm a terrorist, you are a terrorist. If you feed a terrorist
or fund a terrorist, you are a terrorist, and you will be
held accountable by the United States and our friends.''.
(3) The United States has committed to provide resources to
states on the frontline in the war against terrorism.
(b) Sense of Congress.--The Congress--
(1) stands in solidarity with Israel, a frontline state in
the war against terrorism, as it takes necessary steps to
provide security to its people by dismantling the terrorist
infrastructure in the Palestinian areas;
(2) remains committed to Israel's right to self-defense;
(3) will continue to assist Israel in strengthening its
homeland defenses;
(4) condemns Palestinian suicide bombings;
(5) demands that the Palestinian Authority fulfill its
commitment to dismantle the terrorist infrastructure in the
Palestinian areas;
(6) urges all Arab states, particularly the United States
allies, Egypt and Saudi Arabia, to declare their unqualified
opposition to all forms of terrorism, particularly suicide
bombing, and to act in concert with the United States to stop
the violence; and
(7) urges all parties in the region to pursue vigorously
efforts to establish a just, lasting, and comprehensive peace
in the Middle East.
SEC. 4203. LIMITATION ON USE OF CERTAIN REVENUE.
Notwithstanding any other provision of law, any revenue
generated from custom user fees imposed pursuant to Section
13031(j)(3) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(j)(3)) may be used only to fund
the operations of the United States Customs Service.
SEC. 4204. SENSE OF THE SENATE REGARDING THE UNITED STATES-
RUSSIAN FEDERATION SUMMIT MEETING, MAY 2002.
(a) Findings.--The Senate finds that--
(1) President George W. Bush will visit the Russian
Federation May 23-25, 2002, to meet with his Russian
counterpart, President Vladimir V. Putin;
(2) the President and President Putin, and the United
States and Russian governments, continue to cooperate closely
in the fight against international terrorism;
(3) the President seeks Russian cooperation in containing
the war-making capabilities of Iraq, including that country's
ongoing program to develop and deploy weapons of mass
destruction;
(4) during his visit, the President expects to sign a
treaty to significantly reduce deployed American and Russian
nuclear weapons by 2012;
(5) the President and his NATO partners have further
institutionalized United States-Russian security cooperation
through establishment of the NATO-Russia Council, which meets
for the first time on May 28, 2002, in Rome, Italy;
(6) during his visit, the President will continue to
address religious freedom and human rights concerns through
open and candid discussions with President Putin, with
leading Russian activists, and with representatives of
Russia's revitalized and diverse Jewish community; and
(7) recognizing Russia's progress on religious freedom and
a broad range of other mechanisms to address remaining
concerns, the President has asked the Congress to terminate
application to Russian of title IV of the Trade Act of 1974
(commonly known as the ``Jackson-Vanik Amendment'') and
authorize the extension of normal trade relations to the
products of Russia.
(b) Sense of the Senate.--The Senate--
(1) supports the President's efforts to deepen the
friendship between the American and Russian peoples;
(2) further supports the policy objectives of the President
mentioned in this section with respect to the Russian
Federation;
(3) supports terminating the application of title IV of the
Trade Act of 1974 to Russia in an appropriate and timely
manner; and
(4) looks forward to learning the results of the
President's discussions with President Putin and other
representatives of the Russian government and Russian
society.
SEC. 4205. NO APPROPRIATIONS.
Notwithstanding any other provision of this Act, no direct
appropriation may be made under this Act.
The text of the House amendment to the Senate amendment is as
follows:
House amendment to Senate amendment:
In lieu of the matter proposed to be inserted by the Senate
amendment, 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 4 divisions as
follows:
(1) Division a.--Trade Adjustment Assistance.
(2) Division b.--Bipartisan Trade Promotion Authority.
(3) Division c.--Andean Trade Preference Act.
(4) Division d.--Extension of Certain Preferential Trade
Treatment and Other Provisions.
(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 PROGRAM
Sec. 111. Reauthorization of trade adjustment assistance program.
Sec. 112. Filing of petitions and provision of rapid response
assistance; expedited review of petitions by Secretary of
Labor.
Sec. 113. Group eligibility requirements.
Sec. 114. Qualifying requirements for trade readjustment allowances.
Sec. 115. Waivers of training requirements.
Sec. 116. Amendments to limitations on trade readjustment allowances.
Sec. 117. Annual total amount of payments for training.
Sec. 118. Authority of States with respect to costs of approved
training and supplemental assistance.
Sec. 119. Provision of employer-based training.
Sec. 120. Coordination with title I of the Workforce Investment Act of
1998.
Sec. 121. Expenditure period.
Sec. 122. Declaration of policy; sense of Congress.
[[Page H4001]]
TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS
Sec. 201. Credit for health insurance costs of individuals receiving a
trade readjustment allowance or a benefit from the
Pension Benefit Guaranty Corporation.
Sec. 202. Advance payment of credit for health insurance costs of
eligible individuals.
TITLE III--CUSTOMS REAUTHORIZATION
Sec. 301. Short title.
Subtitle A--United States Customs Service
Chapter 1--Drug Enforcement and Other Noncommercial and Commercial
Operations
Sec. 311. Authorization of appropriations for noncommercial operations,
commercial operations, and air and marine interdiction.
Sec. 312. Antiterrorist and illicit narcotics detection equipment for
the United States-Mexico border, United States-Canada
border, and Florida and the Gulf Coast seaports.
Sec. 313. Compliance with performance plan requirements.
Chapter 2--Child Cyber-Smuggling Center of the Customs Service
Sec. 321. Authorization of appropriations for program to prevent child
pornography/child sexual exploitation.
Chapter 3--Miscellaneous Provisions
Sec. 331. Additional Customs Service officers for United States-Canada
border.
Sec. 332. Study and report relating to personnel practices of the
Customs Service.
Sec. 333. Study and report relating to accounting and auditing
procedures of the Customs Service.
Sec. 334. Establishment and implementation of cost accounting system;
reports.
Sec. 335. Study and report relating to timeliness of prospective
rulings.
Sec. 336. Study and report relating to customs user fees.
Sec. 337. Fees for customs inspections at express courier facilities.
Sec. 338. National customs automation program.
Chapter 4--Antiterrorism Provisions
Sec. 341. Immunity for United States officials that act in good faith.
Sec. 342. Emergency adjustments to offices, ports of entry, or staffing
of the customs service.
Sec. 343. Mandatory advanced electronic information for cargo and
passengers.
Sec. 344. Border search authority for certain contraband in outbound
mail.
Sec. 345. Authorization of appropriations for reestablishment of
customs operations in New York City.
Chapter 5--Textile Transshipment Provisions
Sec. 351. Gao audit of textile transshipment monitoring by customs
service.
Sec. 352. Authorization of appropriations for textile transshipment
enforcement operations.
Sec. 353. Implementation of the african growth and opportunity act.
Subtitle B--Office of the United States Trade Representative
Sec. 361. Authorization of appropriations.
Subtitle C--United States International Trade Commission
Sec. 371. Authorization of appropriations.
Subtitle D--Other trade provisions
Sec. 381. Increase in aggregate value of articles exempt from duty
acquired abroad by United States residents.
Sec. 382. Regulatory audit procedures.
DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI--TRADE PROMOTION AUTHORITY
Sec. 2101. Short title and 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. Definitions.
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN TRADE PREFERENCE
Sec. 3101. Short title.
Sec. 3102. Findings.
Sec. 3103. Articles eligible for preferential treatment.
Sec. 3104. Termination of preferential treatment.
Sec. 3105. Trade benefits under the Caribbean Basin Economic Recovery
act.
Sec. 3106. Trade benefits under the African Growth and Opportunity Act.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER
PROVISIONS
Sec. 4101. Extension of generalized system of preferences.
Sec. 4102. Fund for WTO dispute settlements.
Sec. 4103. Payment of duties and fees.
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 PROGRAM
SEC. 111. REAUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE
PROGRAM.
(a) Assistance for Workers.--Section 245 of the Trade Act
of 1974 (19 U.S.C. 2317) is amended by striking ``October 1,
1998, and ending September 30, 2001,'' each place it appears
and inserting ``October 1, 2001, and ending September 30,
2004,''.
(b) Assistance for Firms.--Section 256(b) of the Trade Act
of 1974 (19 U.S.C. 2346(b)) is amended by striking ``October
1, 1998, and ending September 30, 2001'' and inserting
``October 1, 2001, and ending September 30, 2004,''.
(c) Termination.--Section 285(c) of the Trade Act of 1974
(19 U.S.C. 2271 note) is amended in paragraphs (1) and (2)(A)
by striking ``September 30, 2001'' and inserting ``September
30, 2004''.
(d) Training Limitation Under NAFTA Program.--Section
250(d)(2) of the Trade Act of 1974 (19 U.S.C. 2331(d)(2)) is
amended by striking ``October 1, 1998, and ending September
30, 2001'' and inserting ``October 1, 2001, and ending
September 30, 2004''.
SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE
ASSISTANCE; EXPEDITED REVIEW OF PETITIONS BY
SECRETARY OF LABOR.
(a) Filing of Petitions and Provision of Rapid Response
Assistance.--Section 221(a) of the Trade Act of 1974 (19
U.S.C. 2271(a)) is amended to read as follows:
``(a)(1) A petition for certification of eligibility to
apply for adjustment assistance for a group of workers under
this chapter may be filed with the Governor of the State in
which such workers' firm or subdivision is located by any of
the following:
``(A) The group of workers (including workers in an
agricultural firm or subdivision of any agricultural firm).
``(B) The certified or recognized union or other duly
authorized representative of such workers.
``(C) Employers of such workers, one-stop operators or one-
stop partners (as defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801)), including State
employment security agencies, or the State dislocated worker
unit established under title I of such Act, on behalf of such
workers.
``(2) Upon receipt of a petition filed under paragraph (1),
the Governor shall--
``(A) immediately transmit the petition to the Secretary of
Labor (hereinafter in this chapter referred to as the
`Secretary');
``(B) ensure that rapid response assistance, and
appropriate core and intensive services (as described section
134 of the Workforce Investment Act of 1998 (29 U.S.C. 2864))
authorized under other Federal laws are made available to the
workers covered by the petition to the extent authorized
under such laws; and
``(C) assist the Secretary in the review of the petition by
verifying such information and providing such other
assistance as the Secretary may request.
``(3) 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) Expedited Review of Petitions by Secretary of Labor.--
Section 223(a) of such Act (19 U.S.C. 2273(a)) is amended in
the first sentence by striking ``60 days'' and inserting ``40
days''.
SEC. 113. GROUP ELIGIBILITY REQUIREMENTS.
(a) Trade Adjustment Assistance Program.--
(1) In general.--Section 222 of the Trade Act of 1974 (19
U.S.C. 2272) is amended--
(A) by redesignating subsection (b) as subsection (c); and
(B) by inserting after subsection (a) the following:
``(b)(1) A group of workers (including workers in any
agricultural firm or subdivision of an agricultural firm)
shall be certified by the Secretary as eligible to apply for
adjustment assistance benefits under this subchapter if,
subject to paragraph (2), 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) that employed workers covered by a
certification of eligibility under subsection (a), the
component parts provided to the firm by the supplier is a
direct component of the article that is the basis for the
certification of eligibility under subsection (a), and either
the component parts have a dedicated usage for the firm and
the supplier does not have another reasonably available
purchaser, or the component parts add at least 25 percent of
the value to the article involved; and
``(C) a loss of business with the firm (or subdivision)
covered by the certification of eligibility under subsection
(a) contributed importantly to the workers' separation or
[[Page H4002]]
threat of separation determined under subparagraph (A).
``(2) A group of workers shall be eligible for
certification by the Secretary under paragraph (1) if the
petition for certification is filed with the Secretary not
later than 6 months after the date on which the Secretary
certifies the group of workers in the firm (or subdivision of
the firm) under subsection (a) with respect to which the firm
involved is a supplier.''.
(2) Definitions.--Section 222(c) of such Act, as
redesignated by paragraph (1)(A), is amended--
(A) in the matter preceding paragraph (1), by striking
``subsection (a)(3)'' and inserting ``this section''; and
(B) by adding at the end the following:
``(3) The term `supplier' means a firm that produces
component parts for articles produced by a firm (or
subdivision) that employed a group of workers covered by a
certification of eligibility under subsection (a) and with
respect to which the production of such component parts
constitutes not less than 50 percent of the total operations
or production of the firm.''.
(b) NAFTA Transitional Adjustment Assistance Program.--
(1) In general.--Section 250(a) of the Trade Act of 1974
(19 U.S.C. 2331(a)) is amended--
(A) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) Criteria for adversely affected secondary workers.--
(A) A group of workers (including workers in any agricultural
firm or subdivision of an agricultural firm) shall be
certified by the Secretary as eligible to apply for
adjustment assistance benefits under this subchapter if,
subject to subparagraph (B), the Secretary determines that--
``(i) 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;
``(ii) the workers' firm (or subdivision) is a supplier to
a firm (or subdivision) that employed workers covered by a
certification of eligibility under paragraph (1), the
component parts provided to the firm by the supplier is a
direct component of the article that is the basis for the
certification of eligibility under subsection (a), and either
the component parts have a dedicated usage for the firm and
the supplier does not have another reasonably available
purchaser, or the component parts add at least 25 percent of
the value to the article involved; and
``(iii) a loss of business with the firm (or subdivision)
covered by the certification of eligibility under paragraph
(1) contributed importantly to the workers' separation or
threat of separation determined under clause (i).
``(B) A group of workers shall be eligible for
certification by the Secretary under subparagraph (A) if the
petition for certification is filed with the Secretary not
later than 6 months after the date on which the Secretary
certifies the group of workers in the firm (or subdivision of
the firm) under paragraph (1) with respect to which the firm
involved is a supplier.''.
(2) Definitions.--Section 250(a)(3) of such Act, as
redesignated by paragraph (1)(A), is amended to read as
follows:
``(3) Definitions.--In this section:
``(A) The term `contributed importantly' means a cause
which is important but not necessarily more important than
any other cause.
``(B) The term `supplier' means a firm that produces
component parts for articles produced by a firm (or
subdivision) covered by a certification of eligibility under
paragraph (1) and with respect to which the production of
such component parts constitutes not less than 50 percent of
the total operations or production of the firm.''.
(3) Regulations.--Section 250(a)(4) of such Act, as
redesignated by paragraph (1)(A), is amended by striking
``paragraph (1)'' and inserting ``paragraphs (1) and (2)''.
SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT
ALLOWANCES.
(a) Clarification of Certain Reductions.--(1) Section
231(a)(3)(B) of the Trade Act of 1974 (19 U.S.C.
2291(a)(3)(B)) is amended by inserting after ``any
unemployment insurance'' the following: ``, except additional
compensation that is funded by a State and is not reimbursed
from any Federal funds,''.
(2) Section 233(a)(1) of the Trade Act of 1974 (19 U.S.C.
2293(a)(1)) is amended by inserting after ``any unemployment
insurance'' the following: ``, except additional compensation
that is funded by a State and is not reimbursed from any
Federal funds,''.
(b) Enrollment in Training Requirement.--Section
231(a)(5)(A) of such Act (19 U.S.C. 2291(a)(5)(A)) is
amended--
(1) by inserting ``(i)'' after ``(A)'';
(2) by adding ``and'' after the comma at the end; and
(3) by adding at the end the following:
``(ii) the enrollment required under clause (i) occurs no
later than the latest of--
``(I) the last day of the 13th week after the worker's most
recent total separation from adversely affected employment
which meets the requirements of paragraphs (1) and (2);
``(II) the last day of the 8th week after the week in which
the Secretary issues a certification covering the worker;
``(III) 45 days after the later of the dates specified in
subclause (I) or (II), if the Secretary determines there are
extenuating circumstances that justify an extension in the
enrollment period; or
``(IV) the last day of a period determined by the Secretary
to be approved for enrollment after the termination of a
waiver issued pursuant to subsection (c).''.
SEC. 115. WAIVERS OF TRAINING REQUIREMENTS.
(a) In General.--Section 231(c) of the Trade Act of 1974
(19 U.S.C. 2291(c)) is amended to read as follows:
``(c)(1) The Secretary may issue a written statement to a
worker waiving the enrollment in the training requirement
described in subsection (a)(5)(A) if the Secretary determines
that such training requirement is not feasible or appropriate
for the worker, as indicated by 1 or more of the following:
``(A) The worker has been provided a written notice that
the worker will be recalled by the firm from which the
qualifying separation occurred and that such recall will
occur within 6 months of the qualifying separation.
``(B) The worker is within 2 years of meeting all
requirements for entitlement to old-age insurance benefits
under title II of the Social Security Act (42 U.S.C. 401 et
seq.) (except for application therefore) as of the date of
the most recent separation of the worker that meets the
requirements of subsection (a)(1) and (2).
``(C) 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.
``(D) The first available enrollment date for the approved
training of the worker is within 45 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.
``(E) There are insufficient funds available for training
under this chapter, and funds are not available for the
approved training under other Federal law.
``(2) The Secretary shall specify the duration of the
waiver under paragraph (1)-and shall periodically review the
waiver to determine whether the basis for issuing the waiver
remains applicable. If at any time the Secretary determines
such basis is no longer applicable to the worker, the
Secretary shall revoke the waiver.
``(3) Pursuant to the agreement under section 239, the
Secretary may authorize a cooperating State or State agency
to carry out activities described in paragraph (1) (except
for the determination under subparagraph (E) of paragraph
(1)). Such agreement shall include a requirement that the
State or State agency maintain and make available to the
Secretary the written statements provided pursuant to
paragraph (1) and a statement of the reasons for the waiver.
``(4) The Secretary shall collect and maintain information
identifying the number of workers who received waivers and
the average duration of such waivers issued under this
subsection during the preceding year.''.
(b) Conforming Amendment.--Section 231(a)(5)(C) of such Act
(19 U.S.C. 2291(a)(5)(C)) is amended by striking
``certified''.
SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READJUSTMENT
ALLOWANCES.
(a) Increase in Maximum Number of Weeks.--Section 233(a) of
the Trade Act of 1974 (19 U.S.C. 2293(a)) is amended--
(1) in paragraph (2), by inserting after ``104-week
period'' the following: ``(or, in the case of an adversely
affected worker who requires a program of remedial education
(as described in section 236(a)(5)(D)) in order to complete
training approved for the worker under section 236, the 130-
week period)''; and
(2) in paragraph (3), by striking ``26'' each place it
appears and inserting ``52''.
(b) Special Rule Relating to Break in Training.--Section
233(f) of the Trade Act of 1974 (19 U.S.C. 2293(f)) is
amended in the matter preceding paragraph (1) by striking
``14 days'' and inserting ``30 days''.
(c) Additional Weeks for Individuals in Need of Remedial
Education.--Section 233 of the Trade Act of 1974 (19 U.S.C.
2293) is amended by adding at the end the following:
``(g) Notwithstanding any other provision of this section,
in order to assist an adversely affected worker to complete
training approved for the worker under section 236 which
includes a program of remedial education (as described in
section 236(a)(5)(D)), and in accordance with regulations
prescribed by the Secretary, payments may be made as trade
readjustment allowances for up to 26 additional weeks in the
26-week period that follows the last week of entitlement to
trade readjustment allowances otherwise payable under this
chapter.''.
SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR TRAINING.
Section 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C.
2296(a)(2)(A)) is amended by striking ``$80,000,000'' and all
that follows through ``$70,000,000'' and inserting
``$110,000,000''.
SEC. 118. AUTHORITY OF STATES WITH RESPECT TO COSTS OF
APPROVED TRAINING AND SUPPLEMENTAL ASSISTANCE.
(a) Costs of Approved Training.--Section 236(a) of the
Trade Act of 1974 (19 U.S.C. 2296(a)) is amended by adding at
the end the following new paragraph:
``(10) For purposes of carrying out paragraph (1)(F), the
Secretary shall authorize
[[Page H4003]]
any cooperating State or State agency to establish, pursuant
to guidelines issued by the Secretary, a uniform limit on the
cost of training to be paid from funds provided under this
chapter that may be approved by such State for an adversely
affected worker under this section.''.
(b) Supplemental Assistance.--Section 236(b) of such Act
(19 U.S.C. 2296(b)) is amended by inserting the following
sentence after the first sentence: ``The Secretary shall
authorize any cooperating State or State agency to take into
account the cost of the training approved for an adversely
affected worker under subsection (a) in determining the
appropriate amount of supplemental assistance to be provided
to such worker under this subsection.''.
SEC. 119. PROVISION OF EMPLOYER-BASED TRAINING.
(a) In General.--Section 236(a)(5)(A) of the Trade Act of
1974 (19 U.S.C. 2296(a)(5)(A)) is amended to read as follows:
``(A) employer-based training, including--
``(i) on-the-job training, and
``(ii) customized training,''.
(b) Reimbursement.--Section 236(c)(8) of such Act (19
U.S.C. 2296(c)(8)) is amended to read as follows:
``(8) 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,''.
(c) Definition.--Section 236 of such Act (19 U.S.C. 2296)
is amended by adding the following new subsection:
``(f) For purposes of this section, the term `customized
training' means training that is--
``(1) designed to meet the special requirements of an
employer or group of employers;
``(2) conducted with a commitment by the employer or group
of employers to employ an individual upon successful
completion of the training; and
``(3) for which the employer pays for a significant portion
(but in no case less than 50 percent) of the cost of such
training, as determined by the Secretary.''.
SEC. 120. COORDINATION WITH TITLE I OF THE WORKFORCE
INVESTMENT ACT OF 1998.
(a) Coordination With One-Stop Delivery Systems in the
Provision of Employment Services.--Section 235 of the Trade
Act of 1974 (19 U.S.C. 2295) is amended by inserting before
the period at the end of the first sentence the following:
``, including the services provided through one-stop delivery
systems described in section 134(c) of the Workforce
Investment Act of 1998 (29 U.S.C. 2864(c))''.
(b) Coordination With Title I of the Workforce Investment
Act of 1998.--
(1) In general.--Section 239(e) of such Act (19 U.S.C.
2311(e)) is amended to read as follows:
``(e) Any agreement entered into under this section shall
provide for the coordination of the administration of the
provisions for employment services, training, and
supplemental assistance under sections 235 and 236 of this
chapter with provisions relating to dislocated worker
employment and training activities (including supportive
services) under chapter 5 of subtitle B of title I of the
Workforce Investment Act of 1998 (29 U.S.C. 2861 et seq.)
upon such terms and conditions, as established by the
Secretary after consultation with the States, that are
consistent with this section. Such terms and conditions
shall, at a minimum, include requirements that--
``(1) adversely affected workers applying for assistance
under this chapter be co-enrolled in the dislocated worker
program authorized under chapter 5 of subtitle B of title I
of the Workforce Investment Act of 1998;
``(2) training under section 236 shall be provided in
accordance with the provisions relating to consumer choice
requirements and the use of individual training accounts
under subparagraphs (F) and (G) of section 134(d)(4) of the
Workforce Investment Act of 1998 (29 U.S.C. 2864(d)(4)(F) and
(G)), including--
``(A) the requirement that only providers eligible under
section 122 of the Workforce Investment Act of 1998 (29
U.S.C. 2842) shall be eligible to provide training; and
``(B) that the exceptions to the use of individual training
accounts described in section 134(d)(4)(G)(ii) of such Act
(29 U.S.C. 2864(d)(4)(G)(ii)) shall be applicable; and
``(3) common reporting systems and elements, including
common elements relating to participant and performance data,
shall be used by the program authorized under this chapter
and the dislocated worker program authorized under chapter 5
of subtitle B of title I of such Act.''.
(2) Additional requirement.--Section 239(g) of such Act (19
U.S.C. 2311(g)) is amended--
(A) by inserting ``(1)'' after ``(g)''; and
(B) by adding at the end the following new paragraph:
``(2) The agreement under this section shall also provide
that the cooperating State agency shall be a one-stop partner
as described in subparagraphs (A) and (B)(viii) of section
121(b)(1) of the Workforce Investment Act of 1998 (29 U.S.C.
2841(b)(1)(A) and (B)(viii)) in the one-stop delivery system
established under section 134(c) of such Act (29 U.S.C.
2864(c)) for the appropriate local workforce investment
areas, and shall carry out the responsibilities relating to
such partners.''.
(3) Conforming amendments.--Section 236(a)(1) of such Act
(19 U.S.C. 2296(a)(1)) is amended--
(A) in the matter preceding subparagraph (A), by inserting
``, pursuant to an interview, evaluation, assessment, or case
management of the worker,'' after ``Secretary determines'';
and
(B) in the second sentence of such paragraph, by striking
``, directly or through a voucher system'' and inserting
``through individual training accounts pursuant to the
agreement under section 239(e)(2)''.
SEC. 121. EXPENDITURE PERIOD.
Section 245 of the Trade Act of 1974 (19 U.S.C. 2317), as
amended by section 111(a) of this Act, is further amended--
(1) by striking ``There are authorized'' and inserting
``(a) In General.--There are authorized''; and
(2) by adding at the end the following subsection:
``(b) Period of Expenditure.--Funds obligated for any
fiscal year to carry out activities under sections 235
through 238 may be expended by each State receiving such
funds during that fiscal year and the succeeding two fiscal
years.''.
SEC. 122. DECLARATION OF POLICY; SENSE OF CONGRESS.
(a) Declaration of Policy.--Congress reiterates that, under
the trade adjustment assistance program under chapter 2 of
title II of the Trade Act of 1974, workers are eligible for
transportation, childcare, and healthcare assistance, as well
as other related assistance under programs administered by
the Department of Labor.
(b) Sense of Congress.--It is the sense of Congress that
the Secretary of Labor, working independently and in
conjunction with the States, should, in accordance with
section 225 of the Trade Act of 1974, provide more specific
information about benefit allowances, training, and other
employment services, and the petition and application
procedures (including appropriate filing dates) for such
allowances, training, and services, under the trade
adjustment assistance program under chapter 2 of title II of
the Trade Act of 1974 to workers who are applying for, or are
certified to receive, assistance under that program,
including information on all other Federal assistance
available to such workers.
TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS
SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS
RECEIVING A TRADE READJUSTMENT ALLOWANCE OR A
BENEFIT FROM THE PENSION BENEFIT GUARANTY
CORPORATION.
(a) In General.--Subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
refundable credits) is amended by redesignating section 35 as
section 36 and inserting after section 34 the following new
section:
``SEC. 35. HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.
``(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 60 percent of the amount paid
by the taxpayer for coverage of the taxpayer and qualifying
family members under qualified health insurance for eligible
coverage months beginning in the taxable year.
``(b) Limitation Based on Modified Adjusted Gross Income.--
For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), if
the modified adjusted gross income of the taxpayer for the
taxable year exceeds $20,000, the amount which would (but for
this subsection and subsection (h)(1)) be allowed as a credit
under subsection (a) shall be reduced (but not below zero) by
the amount which bears the same ratio to the amount which
would be so allowed as such excess bears to $20,000.
``(2) Family coverage.--
``(A) Separate application of limitation.--Paragraph (1)
shall be applied separately with respect to--
``(i) amounts paid for eligible coverage months as of the
first day of which one or more qualifying family members are
covered by the qualified health insurance covering the
taxpayer, and
``(ii) amounts paid for other eligible coverage months.
``(B) Limitation amount.--With respect to amounts described
in subparagraph (A)(i), paragraph (1) shall be applied by
substituting `$40,000' for `$20,000' each place it appears.
``(3) Modified adjusted gross income.--The term `modified
adjusted gross income' means adjusted gross income determined
without regard to sections 911, 931, and 933.
``(c) Eligible Coverage Month.--For purposes of this
section--
``(1) In general.--The term `eligible coverage month' means
any month if--
``(A) as of the first day of such month, the taxpayer--
``(i) is an eligible individual,
``(ii) is covered by qualified health insurance, the
premium for which is paid by the taxpayer, and
``(iii) does not have other specified coverage,
``(B) such month begins more than 90 days after the date of
the enactment of the Trade Act of 2002, and
``(C) in the case of any eligible TAA recipient, such month
is designated under paragraph (2).
``(2) Designation of eligible coverage months.--Any
eligible TAA recipient may designate, with respect to any
period of 36 months, not more than 12 months of such period
as eligible coverage months.
``(3) Joint returns.--In the case of a joint return, the
requirements of paragraph (1)(A)
[[Page H4004]]
shall be treated as met with respect to any month if at least
1 spouse satisfies such requirements.
``(d) Eligible Individual.--For purposes of this section--
``(1) In general.--The term `eligible individual' means--
``(A) an eligible TAA recipient, or
``(B) an eligible PBGC pension recipient.
``(2) Eligible taa recipient.--The term `eligible TAA
recipient' means, with respect to any month, any individual--
``(A) who is receiving for any day of such month a trade
readjustment allowance under part I of subchapter B, or
subchapter D, of chapter 2 of title II of the Trade Act of
1974 (19 U.S.C. 2291 et seq. or 2331 et seq.) or who would be
eligible to receive such allowance if section 231 of such Act
(19 U.S.C. 2291) were applied without regard to subsection
(a)(3)(B) of such section, and
``(B) who, with respect to such allowance, is covered under
a certification issued--
``(i) under subchapter A or D of chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq. or 2331 et
seq.), and
``(ii) after the date which is 90 days after the date of
the enactment of the Trade Act of 2002.
An individual shall continue to be treated as an eligible TAA
recipient during the first month that such individual would
otherwise cease to be an eligible TAA recipient.
``(3) Eligible pbgc pension recipient.--The term `eligible
PBGC pension recipient' means, with respect to any month, any
individual who--
``(A) has attained age 55 as of the first day of such
month, and
``(B) is receiving a benefit for such month any portion of
which is paid by the Pension Benefit Guaranty Corporation
under title IV of the Employee Retirement Income Security Act
of 1974.
``(e) Qualifying Family Member.--For purposes of this
section--
``(1) In general.--The term `qualifying family member'
means--
``(A) the taxpayer's spouse, and
``(B) any dependent of the taxpayer with respect to whom
the taxpayer is entitled to a deduction under section 151(c).
Such term does not include any individual who has other
specified coverage.
``(2) Special dependency test in case of divorced parents,
etc.--If paragraph (2) or (4) of section 152(e) applies to
any child with respect to any calendar year, in the case of
any taxable year beginning in such calendar year, such child
shall be treated as described in paragraph (1)(B) with
respect to the custodial parent (within the meaning of
section 152(e)(1)) and not with respect to the noncustodial
parent.
``(f) Qualified Health Insurance.--For purposes of this
section, the term `qualified health insurance' means
insurance which constitutes medical care; except that such
term shall not include any insurance if substantially all of
its coverage is of excepted benefits described in section
9832(c).
``(g) Other Specified Coverage.--
``(1) In general.--For purposes of this section, an
individual has other specified coverage for any month if, as
of the first day of such month--
``(A) Subsidized coverage.--Such individual is covered
under any qualified health insurance under any health plan
maintained by any employer (or former employer) of the
taxpayer or the taxpayer's spouse and at least 50 percent of
the cost of such coverage (determined under section 4980B) is
paid or incurred by the 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.
``(C) Certain other coverage.--Such individual--
``(i) is enrolled in a health benefits plan under chapter
89 of title 5, United States Code, or
``(ii) is entitled to receive benefits under chapter 55 of
title 10, United States Code.
``(2) Special rules related to subsidized coverage.--
``(A) Employer contributions to cafeteria plans, flexible
spending arrangements, and medical savings accounts.--
Employer contributions to a cafeteria plan (as defined in
section 125(d)), a flexible spending or similar arrangement,
or a medical savings account which are excluded from gross
income under section 106 shall be treated for purposes of
paragraph (1)(A) as paid by the employer.
``(B) Aggregation of plans of employer.--A health plan
which is not otherwise described in paragraph (1)(A) shall be
treated as described in such paragraph if such plan would be
so described if all health plans of persons treated as a
single employer under subsection (b), (c), (m), or (o) of
section 414 were treated as one health plan.
``(3) Immunizations not treated as medicaid coverage.--For
purposes of paragraph (1)(B), an individual shall not be
treated as enrolled in the program under title XIX of the
Social Security Act solely on the basis of receiving a
benefit under section 1928 of such Act.
``(h) Special Rules.--
``(1) Coordination with advance payments of credit.--With
respect to any taxable year, the amount which would (but for
this subsection) be allowed as a credit to the taxpayer under
subsection (a) shall be reduced (but not below zero) by the
aggregate amount paid on behalf of such taxpayer under
section 7527 for months beginning in such taxable year.
``(2) 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.
``(3) MSA distributions.--Amounts distributed from an
Archer MSA (as defined in section 220(d)) shall not be taken
into account under subsection (a).
``(4) 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.
``(5) Married couples must file joint return.--If the
taxpayer is married at the close of the taxable year, the
credit shall be allowed under subsection (a) only if the
taxpayer and his spouse file a joint return for the taxable
year.
``(6) Marital status; certain married individuals living
apart.--Rules similar to the rules of paragraphs (3) and (4)
of section 21(e) shall apply for purposes of this section.
``(7) Insurance which covers other individuals.--For
purposes of this section, rules similar to the rules of
section 213(d)(6) shall apply with respect to any contract
for qualified health insurance under which amounts are
payable for coverage of an individual other than the taxpayer
and qualifying family members.
``(8) Treatment of payments.--For purposes of this
section--
``(A) Payments by secretary.--Payments made by the
Secretary on behalf of any individual under section 7527
(relating to advance payment of credit for health insurance
costs of eligible TAA recipients) shall be treated as having
been made by the taxpayer on the first day of the month for
which such payment was made.
``(B) Payments by taxpayer.--Payments made by the taxpayer
for eligible coverage months shall be treated as having been
made by the taxpayer on the first day of the month for which
such payment was made.
``(9) Regulations.--The Secretary may prescribe such
regulations and other guidance as may be necessary or
appropriate to carry out this section, section 6050T, and
section 7527.''.
(b) Increased Access to Health Insurance for Individuals
Eligible for Tax Credit Through Use of Guaranteed Issue,
Qualified High Risk Pools, and Other Appropriate State
Mechanisms.--
(1) In general.--Notwithstanding any other provision of
law, in applying section 2741 of the Public Health Service
Act (42 U.S.C. 300gg-41)) and any alternative State mechanism
under section 2744 of such Act (42 U.S.C.300gg-44)), in
determining who is an eligible individual (as defined in
section 2741(b) of such Act) in the case of an individual who
may be covered by insurance for which credit is allowable
under section 35 of the Internal Revenue Code of 1986 for an
eligible coverage month, if the individual seeks to obtain
health insurance coverage under such section during an
eligible coverage month under such section--
(A) paragraph (1) of such section 2741(b) shall be applied
as if any reference to 18 months is deemed a reference to 12
months, and
(B) paragraphs (4) and (5) of such section 2741(b) shall
not apply.
(2) Promotion of state high risk pools.--Title XXVII of the
Public Health Service Act is amended by inserting after
section 2744 the following new section:
``SEC. 2745. PROMOTION OF QUALIFIED HIGH RISK POOLS.
``(a) Seed Grants to States.--The Secretary shall provide
from the funds appropriated under subsection (c)(1) a grant
of up to $1,000,000 to each State that has not created a
qualified high risk pool as of the date of the enactment of
this section for the State's costs of creation and initial
operation of such a pool.
``(b) Matching Funds for Operation of Pools.--
``(1) In general.--In the case of a State that has
established a qualified high risk pool that--
``(A) restricts premiums charged under the pool to no more
than 150 percent of the premium for applicable standard risk
rates;
``(B) that offers a choice of two or more coverage options
through the pool; and
``(C) has in effect a mechanism reasonably designed to
ensure continued funding of losses incurred by the State
after the end of fiscal year 2004 in connection with
operation of the pool;
the Secretary shall provide, from the funds appropriated
under subsection (c)(2) and allotted to the State under
paragraph (2), a grant of up to 50 percent of the losses
incurred by the State in connection with the operation of the
pool.
``(2) Allotment.--The amounts appropriated under subsection
(c)(2) for a fiscal year shall be made available to the
States in accordance with a formula that is based upon the
number of uninsured individuals in the States.
``(3) Construction.--Nothing in this subsection shall be
construed as preventing a State from supplementing the funds
made available under this subsection for the support and
operation of qualified high risk pools.
[[Page H4005]]
``(c) Funding.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated--
``(1) $20,000,000 for fiscal year 2003 to carry out
subsection (a); and
``(2) $40,000,000 for each of fiscal years 2003 and 2004.
Funds appropriated under this subsection for a fiscal year
shall remain available for obligation through the end of the
following fiscal year. Nothing in this section shall be
construed as providing a State with an entitlement to a grant
under this section.
``(d) Qualified High Risk Pool and State Defined.--For
purposes of this section, the term `qualified high risk pool'
has the meaning given such term in section 2744(c)(2) and the
term `State' means any of the 50 States and the District of
Columbia.''.
(3) Construction.--Nothing in this subsection shall be
construed as affecting the ability of a State to use
mechanisms, described in sections 2741(c) and 2744 of the
Public Health Service Act, as an alternative to applying the
guaranteed availability provisions of section 2741(a) of such
Act.
(c) 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 35 of such Code''.
(2) The table of sections for subpart C of part IV of
chapter 1 of the Internal Revenue Code of 1986 is amended by
striking the last item and inserting the following new items:
``Sec. 35. Health insurance costs of eligible individuals.
``Sec. 36. Overpayments of tax.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE
COSTS OF ELIGIBLE INDIVIDUALS.
(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 CREDIT FOR HEALTH INSURANCE
COSTS OF ELIGIBLE INDIVIDUALS.
``(a) General Rule.--Not later than July 1, 2003, the
Secretary shall establish a program for making payments on
behalf of certified individuals to providers of qualified
health insurance (as defined in section 35(f)) for such
individuals.
``(b) Limitation on Advance Payments During any Taxable
Year.--
``(1) In general.--The Secretary may make payments under
subsection (a) only to the extent that the total amount of
such payments made on behalf of any individual during the
taxable year does not exceed such individual's advance
payment limitation amount for such year.
``(2) Advance payment limitation amount.--
``(A) In general.--Except as provided in subparagraph (B),
with respect to any certified individual, the advance payment
limitation amount for any taxable year shall be an amount
equal to the amount that such individual would be allowed as
a credit under section 35 for such taxable year if such
individual's modified adjusted gross income (as defined in
section 35(b)(3)) for such taxable year were an amount equal
to the amount of such individual's modified adjusted gross
income shown on the return for the prior taxable year.
``(B) Substitute amount.--For purposes of this section, the
Secretary may substitute an amount for an individual's
advance payment limitation amount for any taxable year if the
Secretary determines that such substitute amount more
accurately reflects such individual's modified adjusted gross
income for such taxable year.
``(c) Certified Individual.--For purposes of this section,
the term `certified individual' means any individual for whom
a qualified health insurance costs credit eligibility
certificate is in effect.
``(d) Qualified Health Insurance Costs Credit Eligibility
Certificate.--For purposes of this section, a qualified
health insurance costs credit eligibility certificate is a
statement certified by the Secretary of Labor or the Pension
Benefit Guaranty Corporation (or by any other person or
entity designated by the Secretary) which--
``(1) certifies that the individual was an eligible
individual (within the meaning of section 35(d)) 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) Disclosure of Return Information for Purposes of
Carrying out a Program for Advance Payment of Credit for
Health Insurance Costs of Eligible Individuals.--
(1) In general.--Subsection (l) of section 6103 of such
Code (relating to disclosure of returns and return
information for purposes other than tax administration) is
amended by adding at the end the following new paragraph:
``(18) Disclosure of return information for purposes of
carrying out a program for advance payment of credit for
health insurance costs of eligible individuals.--The
Secretary may disclose to providers of health insurance for
any certified individual (as defined in section 7527(c))
return information with respect to such certified individual
only to the extent necessary to carry out the program
established by section 7527 (relating to advance payment of
health insurance cost credit).''.
(2) Procedures and recordkeeping related to disclosures.--
Subsection (p) of such section is amended--
(A) in paragraph (3)(A) by striking ``or (17)'' and
inserting ``(17), or (18)'', and
(B) in paragraph (4) by inserting ``or (17)'' after ``any
other person described in subsection (l)(16)'' each place it
appears.
(3) Unauthorized inspection of returns or return
information.--Section 7213A(a)(1)(B) of such Code is amended
by striking ``section 6103(n)'' and inserting ``subsection
(l)(18) or (n) of section 6103''.
(c) 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 CREDIT FOR HEALTH INSURANCE
COSTS OF ELIGIBLE INDIVIDUALS.
``(a) Requirement of Reporting.--Every person who is
entitled to receive payments for any month of any calendar
year under section 7527 (relating to advance payment of
credit for health insurance costs of eligible individuals)
with respect to any certified individual (as defined in
section 7527(c)) shall, at such time as the Secretary may
prescribe, make the return described in subsection (b) with
respect to each such individual.
``(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 number of months for which amounts were entitled
to be received with respect to such individual under section
7527 (relating to advance payment of credit for health
insurance costs of eligible individuals),
``(C) the amount entitled to be received for each such
month, 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.''.
(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:
``(xi) section 6050T (relating to returns relating to
credit for health insurance costs of eligible
individuals),''.
(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
credit for health insurance costs of eligible
individuals).''.
(d) Clerical Amendments.--
(1) Advance payment.--The table of sections for chapter 77
of such Code is amended by adding at the end the following
new item:
``Sec. 7527. Advance payment of credit for health insurance costs of
eligible individuals.''.
(2) Information reporting.--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 credit for health insurance costs of
eligible individuals.''.
(e) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
TITLE III--CUSTOMS REAUTHORIZATION
SEC. 301. SHORT TITLE.
This Act 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. 311. 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) $899,121,000 for fiscal year 2002.'';
(2) in subparagraph (B) to read as follows:
``(B) $1,365,456,000 for fiscal year 2003.''; and
[[Page H4006]]
(3) by adding at the end the following:
``(C) $1,399,592,400 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) $1,606,068,000 for fiscal year 2002.'';
(B) in clause (ii) to read as follows:
``(ii) $1,642,602,000 for fiscal year 2003.''; and
(C) by adding at the end the following:
``(iii) $1,683,667,050 for fiscal year 2004.''.
(2) Automated commercial environment computer system.--Of
the amount made available for each of fiscal years 2002
through 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 the
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 Agreement 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) $177,860,000 for fiscal year 2002.'';
(2) in subparagraph (B) to read as follows:
``(B) $170,829,000 for fiscal year 2003.''; and
(3) by adding at the end the following:
``(C) $175,099,725 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. 312. 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 2002.--Of the amounts made available for
fiscal year 2002 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 311(a) of this Act,
$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 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 2003.--Of the amounts made available for
fiscal year 2003 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 311(a) of this Act,
$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 2002 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 311(a) of this Act, 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. 313. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.
As part of the annual performance plan for each of the
fiscal years 2002 and 2003 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 section 312.
CHAPTER 2--CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE
SEC. 321. 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 2002 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.
[[Page H4007]]
CHAPTER 3--MISCELLANEOUS PROVISIONS
SEC. 331. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED
STATES-CANADA BORDER.
Of the amount made available for fiscal year 2002 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 311 of this Act, $28,300,000
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. 332. 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 the
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. 333. 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 the
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. 334. 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 the 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. 335. 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 the
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. 336. 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 the
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.
SEC. 337. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER
FACILITIES.
(a) In General.--Section 13031(b)(9) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(b)(9)) is amended as follows:
(1) In subparagraph (A)--
(A) in the matter preceding clause (i), by striking ``the
processing of merchandise that is informally entered or
released'' and inserting ``the processing of letters,
documents, records, shipments, merchandise, or any other item
that is valued at an amount under $2,000 (or such higher
amount as the Secretary may set by regulation pursuant to
section 498 of the Tariff Act of 1930), whether or not such
items are informally entered or released (except items
entered or released for immediate exportation),''; and
(B) in clause (ii) to read as follows:
``(ii) In the case of an express consignment carrier
facility or centralized hub facility, $.66 per individual
airway bill or bill of lading.''.
(2) By redesignating subparagraph (B) as subparagraph (C)
and inserting after subparagraph (A) the following:
``(B)(i) For fiscal year 2004 and subsequent fiscal years,
the Secretary of the Treasury may adjust (not more than once
per fiscal year) the amount described in subparagraph (A)(ii)
to not less than $.35 but not more than $1.00 per individual
airway bill or bill of lading. The Secretary shall provide
notice in the Federal Register of a proposed adjustment under
the preceding sentence and the reasons therefor and shall
allow for public comment on the proposed adjustment.
``(ii) The payment required by subparagraph (A)(ii) shall
be the only payment required for reimbursement of the Customs
Service in connection with the processing of an individual
airway bill or bill of lading in accordance with such
subparagraph, except that the Customs Service may charge a
fee to cover expenses of the Customs Service for adequate
office space, equipment, furnishings, supplies, and security.
``(iii)(I) The payment required by subparagraph (A)(ii) and
clause (ii) shall be paid on a quarterly basis to the Customs
Service in accordance with regulations prescribed by the
Secretary of the Treasury.
``(II) 50 percent of the amount of payments received under
subparagraph (A)(ii) and clause (ii) shall, in accordance
with section 524 of the Tariff Act of 1930, be deposited as a
refund to the appropriation for the amount paid out of that
appropriation for the costs incurred in providing services to
express consignment carrier facilities or centralized hub
facilities. Amounts deposited in accordance with the
preceding sentence shall be available until expended for the
provision of customs services to express consignment carrier
facilities or centralized hub facilities.
``(III) Notwithstanding section 524 of the Tariff Act of
1930, the remaining 50 percent of the amount of payments
received under subparagraph (A)(ii) and clause (ii) shall be
paid to the Secretary of the Treasury, which is in lieu of
the payment of fees under subsection (a)(10) of this
section.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on October 1, 2002.
SEC. 338. NATIONAL CUSTOMS AUTOMATION PROGRAM.
Section 411(b) of the Tariff Act of 1930 (19 U.S.C.
1411(b)) is amended by striking the second sentence and
inserting the following: ``The Secretary may, by regulation,
require the electronic submission of information described in
subsection (a) or any other information required to be
submitted to the Customs Service separately pursuant to this
subpart.''.
CHAPTER 4--ANTITERRORISM PROVISIONS
SEC. 341. IMMUNITY FOR UNITED STATES OFFICIALS THAT ACT IN
GOOD FAITH.
(a) Immunity.--Section 3061 of the Revised Statutes (19
U.S.C. 482) is amended--
(1) by striking ``Any of the officers'' and inserting ``(a)
Any of the officers''; and
(2) by adding at the end the following:
``(b) Any officer or employee of the United States
conducting a search of a person pursuant to subsection (a)
shall not be held liable for any civil damages as a result of
such search if the officer or employee performed the search
in good faith.''.
(b) Requirement To Post Policy and Procedures for Searches
of Passengers.--Not later than 30 days after the date of the
enactment of this Act, the Commissioner of the Customs
Service shall ensure that at each Customs border facility
appropriate notice is posted that provides a summary of the
policy and procedures of the Customs Service for searching
passengers, including a statement of the policy relating to
the prohibition on the conduct of profiling of passengers
based on gender, race, color, religion, or ethnic background.
[[Page H4008]]
SEC. 342. 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.
``(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. 343. 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)(A) In addition to any other requirement under this
section, for each land, air, or vessel carrier required to
make entry 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 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.
``(B) The Secretary shall cooperate with other appropriate
Federal departments and agencies for the purpose of providing
to such departments and agencies as soon as practicable cargo
manifest information obtained pursuant to subparagraph (A).
In carrying out the preceding sentence, the Secretary, to the
maximum extent practicable, shall protect the privacy and
property rights with respect to the cargo involved.''.
(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 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 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), if applicable, 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;
``(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) Sharing of Information.--The Secretary shall
cooperate with other appropriate Federal departments and
agencies for the purpose of providing to such departments and
agencies as soon as practicable electronic transmission
information obtained pursuant to subsection (a). In carrying
out the preceding sentence, the Secretary, to the maximum
extent practicable, shall protect the privacy rights of the
person with respect to which the information relates.''.
(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 the
enactment of this Act.
SEC. 344. 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. 345. 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 2002.
(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
[[Page H4009]]
(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. 351. 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. 352. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE
TRANSSHIPMENT ENFORCEMENT OPERATIONS.
(a) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated for
textile transshipment enforcement operations of the Customs
Service $9,500,000 for fiscal year 2002.
(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. 353. IMPLEMENTATION OF THE AFRICAN GROWTH AND
OPPORTUNITY ACT.
Of the amount made available for fiscal year 2002 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 311(b)(1) of this Act, $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. 361. 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 2002.'';
(C) in clause (ii) to read as follows:
``(ii) $32,300,000 for fiscal year 2003.''; and
(D) by adding at the end the following:
``(iii) $33,108,000 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 2002 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. 371. 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) $51,440,000 for fiscal year 2002.'';
(2) in clause (ii) to read as follows:
``(ii) $54,000,000 for fiscal year 2003.''; and
(3) by adding at the end the following:
``(iii) $57,240,000 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. 381. 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
[[Page H4010]]
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 the enactment of
this Act.
SEC. 382. 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.''.
DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI--TRADE PROMOTION AUTHORITY
SEC. 2101. SHORT TITLE AND FINDINGS.
(a) Short Title.--This title may be cited as the
``Bipartisan Trade Promotion Authority Act of 2002''.
(b) Findings.--The 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) At the same time, the recent pattern of decisions by
dispute settlement panels and the Appellate Body of the World
Trade Organization to impose obligations and restrictions on
the use of antidumping and countervailing measures by WTO
members under the Antidumping Agreement and the Agreement on
Subsidies and Countervailing Measures has raised concerns,
and Congress is concerned that dispute settlement panels and
the Appellate Body of the WTO appropriately apply the
standard of review contained in Article 17.6 of the
Antidumping Agreement, to provide deference to a permissible
interpretation by a WTO member of provisions of the
Antidumping Agreement, and to the evaluation by a WTO member
of the facts where that evaluation is unbiased and objective
and the establishment of the facts is proper.
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
2111(2)) and an understanding of the relationship between
trade and worker rights; and
(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.
(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.--The principal negotiating
objective of the United States regarding foreign investment
is to reduce or eliminate artificial or trade-distorting
barriers to trade-related foreign investment and, 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, 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) providing meaningful procedures for resolving
investment disputes;
(F) seeking to improve mechanisms used to resolve disputes
between an investor and a government through--
(i) mechanisms to eliminate frivolous claims; and
(ii) procedures to ensure the efficient selection of
arbitrators and the expeditious disposition of claims;
(G) providing an appellate or similar review mechanism to
correct manifestly erroneous interpretations of law; 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; and
(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)(15) 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
[[Page H4011]]
broader application of the principle of transparency
through--
(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) 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) reducing or eliminating subsidies that decrease
market opportunities for United States exports or unfairly
distort agriculture markets to the detriment of the United
States;
(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; and
(xv) maintaining bona fide food assistance programs and
preserving United States market development and export credit
programs.
(B)(i) 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 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) 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 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
[[Page H4012]]
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 2111(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 provisions encouraging the early identification
and settlement of disputes through consultation;
(D) 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;
(E) 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
(F) 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) 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 2111(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 its 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) with respect to any trade agreement which the President
seeks to implement under trade authorities procedures, submit
to the Congress a report describing the extent to which the
country or countries that are parties to the agreement have
in effect laws governing exploitative child labor;
(9)(A) preserve the ability of the United States to enforce
rigorously its trade laws, including the antidumping and
countervailing duty laws, and avoid agreements which lessen
the effectiveness of domestic and international disciplines
on unfair trade, especially dumping and subsidies, 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) ensure that United States exports are not subject to
the abusive use of trade laws, including antidumping and
countervailing duty laws, by other countries.
(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 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 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--
[[Page H4013]]
(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) notwithstanding paragraph (6), reduces the rate of duty
below that applicable under the Uruguay Round Agreements, on
any agricultural product which was the subject of tariff
reductions by the United States as a result of the Uruguay
Round Agreements, for which the rate of duty, 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
(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 5 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 2(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) 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) 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) 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)
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) 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) Report to congress 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--
(A) its views regarding the progress that has been made in
negotiations to achieve the purposes, policies, priorities,
and objectives of this title; and
(B) a statement of its views, and the reasons therefor,
regarding whether the extension requested under paragraph (2)
should be approved or disapproved.
(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) 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) 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) 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) 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
[[Page H4014]]
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.--
(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) 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
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; and
(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;
(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) 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.
(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
(C) the implementation of the agreement under section 2105,
including the general effect of the agreement on existing
laws.
(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 Act 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 the trade agreement,
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;
(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
[[Page H4015]]
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); and
(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.
(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.
(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 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.
(2) Procedures for considering resolutions.--(A) Procedural
disapproval resolutions--
(i) in the House of Representatives--
(I) may be introduced by any Member of the House;
(II) shall be referred to the Committee on Ways and Means
and, in addition, to the Committee on Rules; and
(III) may not be amended by either Committee; and
(ii) in the Senate may be introduced by any Member of the
Senate.
(B) 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.
(C) 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.
(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 section
2103(b)(2), 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
[[Page H4016]]
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; and
(D) after the applicable trade agreement is concluded,
consultation regarding ongoing compliance and enforcement of
negotiated commitments under the trade agreement.
(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. 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 ``section 1103(a)(1)(A) of such Act of
1988'' and inserting ``section 2105(a)(1)(A) of the
Bipartisan Trade Promotion Authority Act of 2002''; 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. 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) 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
(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.
[[Page H4017]]
(6) 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)).
(7) World trade organization; wto.--The terms ``World Trade
Organization'' and ``WTO'' mean the organization established
pursuant to the WTO Agreement.
(8) WTO agreement.--The term ``WTO Agreement'' means the
Agreement Establishing the World Trade Organization entered
into on April 15, 1994.
(9) WTO member.--The term ``WTO member'' has the meaning
given that term in section 2(10) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(10)).
(10) Other definitions.--
(A) Agreement on subsidies and countervailing measures.--
The term ``Agreement on Subsidies and Countervailing
Measures'' means the agreement referred to in section
101(d)(12) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(12)).
(B) Antidumping agreement.--The term ``Antidumping
Agreement`` means the Agreement on Implementation of Article
VI of the General Agreement on Tariffs and Trade 1994
referred to in section 101(d)(7) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(7)).
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN TRADE PREFERENCE
SEC. 3101. SHORT TITLE.
This title may be cited as the ``Andean Trade Promotion and
Drug Eradication Act''.
SEC. 3102. 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
beneficiary 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. 3103. ARTICLES ELIGIBLE FOR PREFERENTIAL TREATMENT.
(a) Eligibility of Certain Articles.--Section 204 of the
Andean Trade Preference Act (19 U.S.C. 3203) is amended--
(1) by striking subsection (c) and redesignating
subsections (d) through (g) as subsections (c) through (f),
respectively; and
(2) by amending subsection (b) to read as follows:
``(b) Exceptions and Special Rules.--
``(1) Certain articles that are not import-sensitive.--The
President may proclaim duty-free treatment under this title
for any article described in subparagraph (A), (B), (C), or
(D) that is the growth, product, or manufacture of an ATPDEA
beneficiary country and that meets the requirements of this
section, if the President determines that such article is not
import-sensitive in the context of imports from ATPDEA
beneficiary countries:
``(A) Footwear not designated at the time of the effective
date of this Act as eligible for the purpose of the
generalized system of preferences under title V of the Trade
Act of 1974.
``(B) Petroleum, or any product derived from petroleum,
provided for in headings 2709 and 2710 of the HTS.
``(C) 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.
``(D) Handbags, luggage, flat goods, work gloves, and
leather wearing apparel that were not designated on August 5,
1983, as eligible articles for purposes of the generalized
system of preferences under title V of the Trade Act of 1974.
``(2) Exclusions.--Subject to paragraph (3), duty-free
treatment under this title may not be extended to--
``(A) textiles 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) rum and tafia classified in subheading 2208.40 of the
HTS; or
``(C) sugars, syrups, and sugar-containing products subject
to over-quota duty rates under applicable tariff-rate quotas.
``(3) Apparel articles.--
``(A) In general.--Apparel articles that are imported
directly into the customs territory of the United States from
an ATPDEA beneficiary country shall enter the United States
free of duty and free of any quantitative restrictions,
limitations, or consultation levels, but only if such
articles are described in subparagraph (B).
``(B) Covered articles.--The apparel articles referred to
in subparagraph (A) are the following:
``(i) Apparel articles assembled from products of the
united states and atpdea beneficiary countries or products
not available in commercial quantities.--Apparel articles
sewn or otherwise assembled in 1 or more ATPDEA 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 formed in the
United States or 1 or more ATPDEA beneficiary countries
(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). Apparel articles shall qualify
under this subclause only if all dyeing, printing, and
finishing of the fabrics from which the articles are
assembled, if the fabrics are knit fabrics, is carried out in
the United States. Apparel articles shall qualify under this
subclause only if all dyeing, printing, and finishing of the
fabrics from which the articles are assembled, if the fabrics
are woven fabrics, is carried out in the United States.
``(II) Fabrics or fabric components formed or components
knit-to-shape, in 1 or more ATPDEA beneficiary countries,
from yarns formed in 1 or more ATPDEA 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 ATPDEA beneficiary
countries) or components are in chief weight of llama or
alpaca.
``(III) Fabrics or yarn that is not formed in the United
States or in one or more ATPDEA beneficiary countries, to the
extent that apparel articles of such fabrics or yarn would be
eligible for preferential treatment, without regard to the
source of the fabrics or yarn, under Annex 401 of the NAFTA.
``(ii) Additional fabrics.--At the request of any
interested party, the President is authorized to proclaim
additional fabrics and yarns as eligible for preferential
treatment under clause (i)(III) if--
``(I) the President determines that such fabrics or yarns
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. 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 action, 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).
``(iii) Apparel articles assembled in 1 or more atpdea
beneficiary countries from regional fabrics or regional
components.--(I) Subject to the limitation set forth in
subclause (II), apparel articles sewn or otherwise assembled
in 1 or more ATPDEA beneficiary countries from fabrics or
from fabric components formed or from components knit-to-
shape, in 1 or more ATPDEA beneficiary countries, from yarns
formed in the United States or 1 or more ATPDEA beneficiary
countries (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 ATPDEA beneficiary
countries), whether or not the apparel articles are also made
from any of the fabrics, fabric components
[[Page H4018]]
formed, or components knit-to-shape described in clause (i).
``(II) The preferential treatment referred to in subclause
(I) shall be extended in the 1-year period beginning December
1, 2001, and in each of the 5 succeeding 1-year periods, to
imports of apparel articles in an amount not to exceed the
applicable percentage of the aggregate square meter
equivalents of all apparel articles imported into the United
States in the preceding 12-month period for which data are
available.
``(III) For purposes of subclause (II), the term
`applicable percentage' means 3 percent for the 1-year period
beginning December 1, 2001, increased in each of the 5
succeeding 1-year periods by equal increments, so that for
the period beginning December 1, 2005, the applicable
percentage does not exceed 6 percent.
``(iv) Handloomed, handmade, and folklore articles.--A
handloomed, handmade, or folklore article of an ATPDEA
beneficiary country identified under subparagraph (C) that is
certified as such by the competent authority of such
beneficiary country.
``(v) Special rules.--
``(I) Exception for findings and trimmings.--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.
``(II) Certain interlining.--(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
subparagraph because the article contains fibers or yarns not
wholly formed in the United States or in one or more ATPDEA
beneficiary countries shall not be ineligible for such
treatment if the total weight of all such fibers or yarns is
not more than 7 percent of the total weight of the good.
``(C) Handloomed, handmade, and folklore articles.--For
purposes of subparagraph (B)(iv), the President shall consult
with representatives of the ATPDEA 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 transshipment.--
``(i) Penalties for exporters.--If the President
determines, based on sufficient evidence, that an exporter
has engaged in transshipment with respect to apparel articles
from an ATPDEA 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 ATPDEA
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 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 (A) has been claimed for an
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 (A).
``(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 ATPDEA beneficiary country if the application of tariff
treatment under subparagraph (A) 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 mean the period ending December 31, 2006; 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 ATPDEA beneficiary country in
question and the country does not agree to consult within the
time period specified under section 4.
``(4) Customs procedures.--
``(A) In general.--
``(i) Regulations.--Any importer that claims preferential
treatment under paragraph (1) 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 (1) 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 ATPDEA 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 (1) 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 (1) 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.
``(5) Definitions.--In this subsection--
``(A) Annex.--The term `the Annex' means Annex 300-B of the
NAFTA.
``(B) ATPDEA beneficiary country.--The term `ATPDEA
beneficiary country' means any `beneficiary country', as
defined in section 203(a)(1) of this title, which the
President designates as an ATPDEA 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
counternarcotics 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) NAFTA.--The term `NAFTA' means the North American
Free Trade Agreement
[[Page H4019]]
entered into between the United States, Mexico, and Canada on
December 17, 1992.
``(D) WTO.--The term `WTO' has the meaning given that term
in section 2 of the Uruguay Round Agreements Act (19 U.S.C.
3501).
``(E) ATPDEA.--The term `ATPDEA' means the Andean Trade
Promotion and Drug Eradication Act.''.
(b) Determination Regarding Retention of Designation.--
Section 203(e)(1) of the Andean Trade Preference Act (19
U.S.C. 3202(e)(1)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(2) by inserting ``(A)'' after ``(1)''; and
(3) 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 ATPDEA beneficiary country, or
``(ii) withdraw, suspend, or limit the application of
preferential treatment under section 204(b)(1) or (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).''.
(c) Conforming Amendments.--(1) Section 202 of the Andean
Trade Preference Act (19 U.S.C. 3201) is amended by inserting
``(or other preferential treatment)'' after ``treatment''.
(2) Section 204(a) of the Andean Trade Preference Act (19
U.S.C. 3203(a)) is amended--
(A) in paragraph (1), by inserting ``(or otherwise provided
for)'' after ``eligibility''; and
(B) in paragraph (2), by striking ``subsection (a)'' and
inserting ``paragraph (1)''.
SEC. 3104. TERMINATION OF PREFERENTIAL TREATMENT.
Section 208 of the Andean Trade Preference Act (19 U.S.C.
3206) is amended to read as follows:
``SEC. 208. TERMINATION OF PREFERENTIAL TREATMENT.
``No duty-free treatment or other preferential treatment
extended to beneficiary countries under this title shall
remain in effect after December 31, 2006.''.
SEC. 3105. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC
RECOVERY ACT.
Section 213(b)(2)(A) of the Carribean Basin Economic
Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amended as follows:
(1) Clause (i) is amended--
(A) by striking the matter preceding subclause (I) and
inserting the following:
``(i) Apparel articles assembled in one or more cbtpa
beneficiary countries.--Apparel articles sewn or otherwise
assembled in one or more CBTPA beneficiary countries from
fabrics wholly formed and cut, or from 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 wholly formed and cut in the United States)
that are--''; and
(B) by adding at the end the following:
``Apparel articles shall qualify under the preceding sentence
only if all dyeing, printing, and finishing of the fabrics
from which the articles are assembled, if the fabrics are
knit fabrics, is carried out in the United States. Apparel
articles shall qualify under the first sentence of this
clause only if all dyeing, printing, and finishing of the
fabrics from which the articles are assembled, if the fabrics
are woven fabrics, is carried out in the United States.''.
(2) Clause (ii) is amended to read as follows:
``(ii) Other apparel articles assembled in one or more
cbtpa beneficiary countries.--Apparel articles sewn or
otherwise assembled in one or more CBTPA beneficiary
countries with thread formed in the United States from
fabrics wholly formed in the United States and cut in one or
more CBTPA beneficiary countries from yarns wholly formed in
the United States, or from components knit-to-shape in the
United States from yarns wholly formed in the United States,
or both (including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of the
HTS and are wholly formed in the United States). Apparel
articles shall qualify under the preceding sentence only if
all dyeing, printing, and finishing of the fabrics from which
the articles are assembled, if the fabrics are knit fabrics,
is carried out in the United States. Apparel articles shall
qualify under the first sentence of this clause only if all
dyeing, printing, and finishing of the fabrics from which the
articles are assembled, if the fabrics are woven fabrics, is
carried out in the United States.''.
(3) Clause (iii)(II) is amended to read as follows:
``(II) The amount referred to in subclause (I) is as
follows:
``(aa) 290,000,000 square meter equivalents during the 1-
year period beginning on October 1, 2001.
``(bb) 500,000,000 square meter equivalents during the 1-
year period beginning on October 1, 2002.
``(cc) 850,000,000 square meter equivalents during the 1-
year period beginning on October 1, 2003.
``(dd) 970,000,000 square meter equivalents in each
succeeding 1-year period through September 30, 2008.''.
(4) Clause (iii)(IV) is amended to read as follows:
``(IV) The amount referred to in subclause (III) is as
follows:
``(aa) 4,872,000 dozen during the 1-year period beginning
on October 1, 2001.
``(bb) 9,000,000 dozen during the 1-year period beginning
on October 1, 2002.
``(cc) 10,000,000 dozen during the 1-year period beginning
on October 1, 2003.
``(dd) 12,000,000 dozen in each succeeding 1-year period
through September 30, 2008.''.
(5) Section 213(b)(2)(A) of such Act is further amended by
adding at the end the following new clause:
``(ix) Apparel articles assembled in one or more cbtpa
beneficiary countries from united states and cbtpa
beneficiary country components.--Apparel articles sewn or
otherwise assembled in one or more CBTPA beneficiary
countries with thread formed in the United States from
components cut in the United States and in one or more CBTPA
beneficiary countries from fabric wholly formed in the United
States from yarns wholly formed in the United States, or from
components knit-to-shape in the United States and one or more
CBTPA beneficiary countries from yarns wholly formed in the
United States, or both (including fabrics not formed from
yarns, if such fabrics are classifiable under heading 5602 or
5603 of the HTS).''.
SEC. 3106. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND
OPPORTUNITY ACT.
Section 112(b) of the African Growth and Opportunity Act
(19 U.S.C. 3721(b)) is amended as follows:
(1) Paragraph (1) is amended by amending the matter
preceding subparagraph (A) to read as follows:
``(1) Apparel articles assembled in one or more beneficiary
sub-saharan african countries.--Apparel articles sewn or
otherwise assembled in one or more beneficiary sub-Saharan
African countries from fabrics wholly formed and cut, or from
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 wholly formed and cut
in the United States) that are--''.
(2) Paragraph (2) is amended to read as follows:
``(2) Other apparel articles assembled in one or more
beneficiary sub-saharan african countries.--Apparel articles
sewn or otherwise assembled in one or more beneficiary sub-
Saharan African countries with thread formed in the United
States from fabrics wholly formed in the United States and
cut in one or more beneficiary sub-Saharan African countries
from yarns wholly formed in the United States, or from
components knit-to-shape in the United States from yarns
wholly formed in the United States, or both (including
fabrics not formed from yarns, if such fabrics are
classifiable under heading 5602 or 5603 of the HTS and are
wholly formed in the United States).''.
(3) Paragraph (3) is amended--
(A) by amending the matter preceding subparagraph (A) to
read as follows:
``(3) Apparel articles from regional fabric or yarns.--
Apparel articles wholly assembled in one or more beneficiary
sub-Saharan African countries from fabric wholly formed in
one or more beneficiary sub-Saharan African countries from
yarns originating either in the United States or one or more
beneficiary sub-Saharan African countries (including fabrics
not formed from yarns, if such fabrics are classified under
heading 5602 or 5603 of the HTS and are wholly formed in one
or more beneficiary sub-Saharan African countries), or from
components knit-to-shape in one or more beneficiary sub-
Saharan African countries from yarns originating either in
the United States or one or more beneficiary sub-Saharan
African countries, or apparel articles wholly formed on
seamless knitting machines in a beneficiary sub-Saharan
African country from yarns originating either in the United
States or one or more beneficiary sub-Saharan African
countries, subject to the following:'';
(B) in subparagraph (A)(ii)--
(i) by striking ``1.5'' and inserting ``3''; and
(ii) by striking ``3.5'' and inserting ``7''; and
(C) by amending subparagraph (B) to read as follows:
``(B) Special rules for lesser developed countries.--
``(i) In general.--Subject to subparagraph (A),
preferential treatment under this paragraph shall be extended
through September 30, 2004, for apparel articles wholly
assembled, or knit-to-shape and wholly assembled, or both, in
one or more lesser developed beneficiary sub-Saharan African
countries regardless of the country of origin of the fabric
or the yarn used to make such articles.
``(ii) Lesser developed beneficiary sub-saharan african
country.--For purposes of clause (i), the term `lesser
developed beneficiary sub-Saharan African country' means--
``(I) a beneficiary sub-Saharan African country that had a
per capita gross national product of less than $1,500 in
1998, as measured by the International Bank for
Reconstruction and Development;
``(II) Botswana; and
``(III) Namibia.''.
(4) Paragraph (4)(B) is amended by striking ``18.5'' and
inserting ``21.5''.
(5) Section 112(b) of such Act is further amended by adding
at the end the following new paragraph:
``(7) Apparel articles assembled in one or more beneficiary
sub-saharan african
[[Page H4020]]
countries from united states and beneficiary sub-saharan
african country components.--Apparel articles sewn or
otherwise assembled in one or more beneficiary sub-Saharan
African countries with thread formed in the United States
from components cut in the United States and one or more
beneficiary sub-Saharan African countries from fabric wholly
formed in the United States from yarns wholly formed in the
United States, or from components knit-to-shape in the United
States and one or more beneficiary sub-Saharan African
countries from yarns wholly formed in the United States, or
both (including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of the
HTS).''.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER
PROVISIONS
SEC. 4101. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.
(a) Extension of Duty-Free Treatment Under System.--Section
505 of the Trade Act of 1974 (19 U.S.C. 2465(a)) is amended
by striking ``September 30, 2001'' and inserting ``December
31, 2002''.
(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 (2), the entry--
(A) of any article to which duty-free treatment under title
V of the Trade Act of 1974 would have applied if the entry
had been made on September 30, 2001,
(B) that was made after September 30, 2001, and before the
date of the enactment of this Act, and
(C) to which duty-free treatment under title V of that Act
did not apply,
shall be liquidated or reliquidated as free of duty, and the
Secretary of the Treasury shall refund any duty paid with
respect to such entry. As used in this subsection, the term
``entry'' includes a withdrawal from warehouse for
consumption.
(2) 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.
SEC. 4102. FUND FOR WTO DISPUTE SETTLEMENTS.
(a) Establishment of Fund.--There is established in the
Treasury a fund for the payment of settlements under this
section.
(b) Authority of USTR to Pay Settlements.--Amounts in the
fund established under subsection (a) shall be available, as
provided in appropriations Acts, only for the payment by the
United States Trade Representative of the amount of the total
or partial settlement of any dispute pursuant to proceedings
under the auspices of the World Trade Organization, if--
(1) in the case of a total or partial settlement in an
amount of not more than $10,000,000, the Trade Representative
certifies to the Secretary of the Treasury that the
settlement is in the best interests of the United States; and
(2) in the case of a total or partial settlement in an
amount of more than $10,000,000, the Trade Representative
certifies to the Congress that the settlement is in the best
interests of the United States.
(c) Appropriations.--There are authorized to be
appropriated to the fund established under subsection (a)--
(1) $50,000,000; and
(2) amounts equivalent to amounts recovered by the United
States pursuant to the settlement of disputes pursuant to
proceedings under the auspices of the World Trade
Organization.
Amounts appropriated to the fund are authorized to remain
available until expended.
(c) Management of fund.--Sections 9601 and 9602(b) of the
Internal Revenue Code of 1986 shall apply to the fund
established under subsection (a) to the same extent as such
provisions apply to trust funds established under subchapter
A of chapter 98 of such Code.
SEC. 4103. PAYMENT OF DUTIES AND FEES.
Section 505(a) of the Tariff Act of 1930 (19 U.S.C.
1505(a)) is amended--
(1) in the first sentence--
(A) by striking ``Unless the merchandise'' and inserting
``Unless the entry of merchandise is covered by an import
activity summary statement, or the merchandise''; and
(B) by inserting after ``by regulation'' the following:
``(but not to exceed 10 working days after entry or release,
whichever occurs first)''; and
(2) by striking the second and third sentences and
inserting the following: ``If an import activity summary
statement is filed, the importer or record shall deposit
estimated duties and fees for entries of merchandise covered
by the import activity summary statement no later than the
15th day of the month following the month in which the
merchandise is entered or released, whichever occurs
first.''.
Appointment of Conferees
The SPEAKER pro tempore. Without objection, the Chair appoints the
following conferees:
From the Committee on Ways and Means, for consideration of the House
amendment and the Senate amendment, and modifications committed to
conference:
Messrs. Thomas, Crane and Rangel.
From the Committee on Education and the Workforce, for consideration
of section 603 of the Senate amendment, and modifications committed to
conference:
Messrs. Boehner, Sam Johnson of Texas and George Miller of
California.
From the Committee on Energy and Commerce, for consideration of
section 603 of the Senate amendment, and modifications committed to
conference:
Messrs. Tauzin, Bilirakis and Dingell.
From the Committee on Government Reform, for consideration of section
344 of the House amendment and section 1143 of the Senate amendment,
and modifications committed to conference:
Messrs. Burton of Indiana, Barr of Georgia and Waxman.
From the Committee on the Judiciary, for consideration of sections
111, 601, and 701 of the Senate amendment, and modifications committed
to conference:
Messrs. Sensenbrenner, Coble and Conyers.
From the Committee on Rules, for consideration of sections 2103,
2105, and 2106 of the House amendment and sections 2103, 2105, and 2106
of the Senate amendment, and modifications committed to conference:
Messrs. Dreier, Linder and Hastings of Florida.
There was no objection.
____________________