[Congressional Record Volume 149, Number 77 (Thursday, May 22, 2003)]
[Senate]
[Page S7004]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mr. Rockefeller, Mr. Bingaman, Mr. 
        Dayton, and Mrs. Murray):
  S. 1120. A bill to establish an Office of Trade Adjustment 
Assistance, and for other purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, I rise today to introduce the Trade 
Adjustment Assistance for Firms Reorganization Act.
  The Trade Adjustment Assistance for Firms program assists hundreds of 
mostly small and medium-sized manufacturing and agricultural companies 
in Montana and nationwide when they face layoffs and lost sales due to 
import competition. Qualifying companies develop adjustment plans and 
receive technical assistance to become more competitive, so they can 
retain and expand employment.
  The program is very cost effective. It requires the firms being 
helped to match the Federal assistance with their own funds, and it 
pays the government back in Federal and State tax revenues when the 
firms succeed.
  Currently, TAA for Firms clients receive assistance preparing 
petitions and adjustment plans from twelve Trade Adjustment Assistance 
Centers, which are Commerce Department contractors. Program and policy 
decisions are made by a small Headquarters staff in Commerce's Economic 
Development Administration. This organizational structure is efficient 
and has served the program well for many years.
  For example, TAA for Firms is helping Montola Growers from 
Culbertson, Montana, to develop cosmetic applications for its rapeseed 
oil. The program is helping Pyramid Mountain Lumber of Seeley Lake, MT 
to upgrade its production process and train employees to use new 
process controls. And it is helping Porterbilt Company of Hamilton to 
expand its product line.
  Last year, in the Trade Act of 2002, a bipartisan majority of 
Congress voted to reauthorize this important program for seven years 
and to increase its authorized funding level. The program seemed headed 
toward some years of smooth sailing. But it turns out that is not the 
case.
  For reasons unrelated to TAA for Firms, EDA is about to move all its 
Headquarters program operations to its six regional offices, with a 
policy office in Washington. For TAA for Firms, that means clients will 
get the same local services from the TAACs, but decisions will be made 
in six regional offices and the national policy office--a net increase 
in layers of government. The likely result is more personnel needed to 
run the program, less centralized and consistent decision making, and 
less accountability--all without any likely improvement in customer 
service.
  The organizational structure of TAA for Firms is not broken and it 
doesn't need to be fixed. This bill preserves the existing efficient 
management structure of the TAA for Firms program. Instead of moving 
the program out of Commerce Headquarters entirely, it simply moves the 
program to a different part of the Commerce Department. That way it can 
continue to be centrally managed with a minimal staff.

  Under this bill, administration of TAA for Firms will move from the 
Economic Development Administration at the Department of Commerce to 
DOC's International Trade Administration.
  Relocating the program to ITA makes a lot more sense that dividing it 
up among seven different EDA offices, for several reasons. First, ITA 
has experience running this program, which was located there prior to 
1990. Second, relocating TAA for Firms to ITA will result in fewer 
layers of government and more centralized and accountable program 
management. It also creates synergies by allowing better coordination 
of the TAA for Firms program with other trade and trade remedy programs 
administered by ITA. And it enhances the ability of the Finance 
Committee to carry out its oversight responsibilities for this program 
and for trade policy in general.
  I want to thank Senators Rockefeller, Bingaman, Dayton, and Murray 
who have joined me in co-sponsoring this bill. This is a simple matter 
of good, sensible government and I encourage more of my colleagues to 
lend it their support. I urge Chairman Grassley to take up this bill in 
the Finance Committee as soon as possible.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1120

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Trade Adjustment Assistance 
     for Firms Reorganization Act''.

     SEC. 2. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

       (a) In General.--Chapter 3 of title II of the Trade Act of 
     1974 (19 U.S.C. 2341 et seq.) is amended by inserting after 
     section 255 the following new section:

     ``SEC. 255A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

       ``(a) Establishment.--Not later than 90 days after the date 
     of enactment of the Trade Adjustment Assistance for Firms 
     Reorganization Act, there shall be established in the 
     International Trade Administration of the Department of 
     Commerce an Office of Trade Adjustment Assistance.
       ``(b) Personnel.--The Office shall be headed by a Director, 
     and shall have such staff as may be necessary to carry out 
     the responsibilities of the Secretary of Commerce described 
     in this chapter.
       ``(c) Functions.--The Office shall assist the Secretary of 
     Commerce in carrying out the Secretary's responsibilities 
     under this chapter.''.
       (b) Conforming Amendment.--The table of contents for the 
     Trade Act of 1974 is amended by inserting after the item 
     relating to section 255, the following new item:

``Sec. 255A. Office of Trade Adjustment Assistance.''.
                                 ______