[Congressional Record Volume 151, Number 85 (Thursday, June 23, 2005)]
[Senate]
[Pages S7316-S7318]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mr. Coleman, and Mr. Wyden):
  S. 1309. A bill to amend the Trade Act of 1974 to extend the trade 
adjustment assistance program to the services sector, and for other 
purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, today I introduce the Trade Adjustment 
Assistance Equity for Service Workers Act.
  Frankly, I am disappointed to be here introducing this bill yet 
again.
  Just last week, the substance of the bill was adopted by a majority 
of members of the Finance Committee as an amendment to the implementing 
legislation for the United States-Central America-Dominican Republic 
Free Trade Agreement. But today, the administration sent us the final 
implementing bill with the amendment stripped out.
  President Bush likes to say that trade is for everyone. That we all 
share the benefits, including workers. And he claims to care a lot 
about having a skilled workforce that can keep American businesses 
competitive in global markets.
  This amendment presented the President with the perfect opportunity 
to put his money where his mouth is.
  He could have said to the American people--as President Clinton did 
when Congress considered the NAFTA--that just as all Americans share in 
the benefits of trade, we all bear a responsibility for its costs. 
Trade liberalization and trade adjustment go hand in hand. And then he 
could have provided America's service sector workers with access to the 
one program designed to make that happen--Trade Adjustment Assistance.
  But by submitting the CAFTA implementing bill stripped of the Trade 
Adjustment Assistance amendment passed by the Finance Committee, he 
chose not to.

[[Page S7317]]

  Since 1962, Trade Adjustment Assistance--what we call ``TAA''--has 
provided retraining, income support, and other benefits so that workers 
who lose their jobs due to trade can make a new start.
  The rationale for TAA is simple. When our government pursues trade 
liberalization, we create benefits for the economy as a whole. But 
there is always some dislocation from trade.
  When he created the TAA program, President Kennedy explained that the 
Federal Government has an obligation ``to render assistance to those 
who suffer as a result of national trade policy.''
  For more than 40 years, we have met that obligation through TAA, 
which is principally a retraining program designed to update worker 
skills.
  The TAA program has not been static over time. Congress periodically 
revises the program to meet new economic realities. Most recently, in 
the Trade Act of 2002, Congress completed the most comprehensive 
overhaul and expansion of the TAA program since its inception.
  I am proud to have played a leading role in passing this landmark 
legislation. But I am also the first to admit that our work is not 
done. Economic realities continue to change, and TAA must continue to 
change with them.
  One fundamental aspect of TAA that has remained unchanged since 1962 
is its focus on manufacturing. We only give TAA benefits to workers who 
make ``articles.''
  Excluding service workers from TAA may have made sense in 1962, when 
most non-farm jobs were in manufacturing and most services were not 
traded across national borders.
  But today, most American jobs are in the service sector. And the 
market for many services is becoming just as global as the market for 
manufactured goods.
  In 2002, the service sector accounted for three quarters of U.S. 
private sector gross domestic product and nearly 80 percent of non-farm 
private employment.
  Trade in services is a net plus for the U.S. economy. Although trade 
in goods continues to dominate, services accounted for 29 percent of 
the value of total U.S. exports in 2002 and the service sector 
generated a trade surplus of $74 billion.
  Just as we have seen with trade in manufactured goods, however, there 
are winners and losers from trade. Trade in services will inevitably 
cost some workers their jobs.
  Indeed, there have been some well-publicized examples in the papers. 
Software sign. Technical support. Accounting and tax preparation 
services. Not long ago, a group of call center workers in Kalispell, MT 
saw their jobs move to Canada and India.
  Examples abound of service sector jobs--even high tech jobs--
relocating overseas. A series of studies estimate that between a half 
million and over 3 million U.S. service sector jobs would be moved 
offshore in the next 5 to 10 years.
  That doesn't mean the total number of jobs in the U.S. economy is 
shrinking. But the fact that jobs may be available in a different field 
is cold comfort to a worker whose own skills are no longer in demand.
  That is why this legislation is so important. It is a simple matter 
of equity.
  When a factory relocates to another country, those workers are 
eligible for TAA. But when a call center moves to another country, 
those workers are not eligible for TAA. They should be.
  The benefits service workers will receive under this legislation 
would be exactly the same as those that trade-impacted manufacturing 
workers now receive. They include retraining, income support, job 
search and relocation allowance, and a health coverage tax credit.
  Hard working American service workers deserve this safety net. These 
benefits will always be second best to a job. But they can really make 
a difference in helping workers make a new start.
  Truthfully, I am mystified by why the President so cavalierly dropped 
the TAA for Services amendment and let this opportunity pass him by. 
His actions are entirely inconsistent with his stated desire to make 
trade benefit all Americans. But, sadly, this has become a pattern.
  Despite the obvious benefits of the TAA program, the Bush 
Administration fought tooth and nail against every penny, and against 
every provision in what became the Trade Adjustment Assistance Reform 
Act of 2002. Extending TAA to service workers was one of many needed 
improvements that was struck in the final version of the bill.
  Again in the last Congress, the extension of TAA to service workers 
was offered as an amendment to the JOBS Act and opposed by the 
Administration. It garnered 54 votes from both sides ofthe aisle--
failing only on a technicality.
  The world is changing and TAA must keep up with the times. Last 
year's Senate vote and this year's Finance Committee vote make clear 
that there is wide support for extending TAA to service workers. I 
truly believe this bill's time has come. I will work hard to move this 
legislation this year.
  I want to thank Senators Coleman and Wyden for co-sponsoring this 
legislation. They have been stalwart supporters in the fight to bring 
equity to service workers. I look forward to working with them to make 
TAA for service workers a reality.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1309

       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 
     Equity for Service Workers Act of 2005''.

     SEC. 2. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICES 
                   SECTOR.

       (a) Adjustment Assistance for Workers.--Section 
     221(a)(1)(A) of the Trade Act of 1974 (19 U.S.C. 
     2271(a)(1)(A)) is amended by striking ``firm)'' and inserting 
     ``firm, and workers in a service sector firm or subdivision 
     of a service sector firm or public agency)''.
       (b) Group Eligibility Requirements.--Section 222 of the 
     Trade Act of 1974 (19 U.S.C. 2272) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``agricultural firm)'' and inserting ``agricultural firm, and 
     workers in a service sector firm or subdivision of a service 
     sector firm or public agency)'';
       (B) in paragraph (1), by inserting ``or public agency'' 
     after ``of the firm''; and
       (C) in paragraph (2)--
       (i) in subparagraph (A)(ii), by striking ``like or directly 
     competitive with articles produced'' and inserting ``or 
     services like or directly competitive with articles produced 
     or services provided'';
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B)(i) there has been a shift, by such workers' firm, 
     subdivision, or public agency to a foreign country, of 
     production of articles, or in provision of services, like or 
     directly competitive with articles which are produced, or 
     services which are provided, by such firm, subdivision, or 
     public agency; or
       ``(ii) such workers' firm, subdivision, or public agency 
     has obtained or is likely to obtain such services from a 
     foreign country.'';
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``agricultural firm)'' and inserting ``agricultural firm, and 
     workers in a service sector firm or subdivision of a service 
     sector firm or public agency)'';
       (B) in paragraph (2), by inserting ``or service'' after 
     ``related to the article''; and
       (C) in paragraph (3)(A), by inserting ``or services'' after 
     ``component parts'';
       (3) in subsection (c)--
       (A) in paragraph (3)--
       (i) by inserting ``or services'' after ``value-added 
     production processes'';
       (ii) by striking ``or finishing'' and inserting ``, 
     finishing, or testing'';
       (iii) by inserting ``or services'' after ``for articles''; 
     and
       (iv) by inserting ``(or subdivision)'' after ``such other 
     firm''; and
       (B) in paragraph (4)--
       (i) by striking ``for articles'' and inserting ``, or 
     services, used in the production of articles or in the 
     provision of services''; and
       (ii) by inserting ``(or subdivision)'' after ``such other 
     firm''; and
       (4) by adding at the end the following new subsection:
       ``(d) Basis for Secretary's Determinations.--
       ``(1) Increased imports.--For purposes of subsection 
     (a)(2)(A)(ii), the Secretary may determine that increased 
     imports of like or directly competitive articles or services 
     exist if the workers' firm or subdivision or customers of the 
     workers' firm or subdivision accounting for not less than 20 
     percent of the sales of the workers' firm or subdivision 
     certify to the Secretary that they are obtaining such 
     articles or services from a foreign country.

[[Page S7318]]

       ``(2) Obtaining services abroad.--For purposes of 
     subsection (a)(2)(B)(ii), the Secretary may determine that 
     the workers' firm, subdivision, or public agency has obtained 
     or is likely to obtain like or directly competitive services 
     from a foreign country based on a certification thereof from 
     the workers' firm, subdivision, or public agency.
       ``(3) Authority of the secretary.--The Secretary may obtain 
     the certifications under paragraphs (1) and (2) through 
     questionnaires or in such other manner as the Secretary 
     determines is appropriate.''.
       (c) Training.--Section 236(a)(2)(A) of the Trade Act of 
     1974 (19 U.S.C. 2296(a)(2)(A)) is amended by striking 
     ``$220,000,000'' and inserting ``$440,000,000''.
       (d) Definitions.--Section 247 of the Trade Act of 1974 (19 
     U.S.C. 2319) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``or public agency'' after ``of a firm''; 
     and
       (B) by inserting ``or public agency'' after ``or 
     subdivision'';
       (2) in paragraph (2)(B), by inserting ``or public agency'' 
     after ``the firm'';
       (3) by redesignating paragraphs (8) through (17) as 
     paragraphs (9) through (18), respectively; and
       (4) by inserting after paragraph (6) the following:
       ``(7) The term `public agency' means a department or agency 
     of a State or local government or of the Federal Government.
       ``(8) The term `service sector firm' means an entity 
     engaged in the business of providing services.''.
       (e) Technical Amendment.--Section 245(a) of the Trade Act 
     of 1974 (19 U.S.C. 2317(a)) is amended by striking ``, other 
     than subchapter D''.

     SEC. 3. TRADE ADJUSTMENT ASSISTANCE FOR FIRMS AND INDUSTRIES.

       (a) Firms.--
       (1) Assistance.--Section 251 of the Trade Act of 1974 (19 
     U.S.C. 2341) is amended--
       (A) in subsection (a), by inserting ``or service sector 
     firm'' after ``(including any agricultural firm'';
       (B) in subsection (c)(1)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``or service sector firm'' after ``any agricultural firm'';
       (ii) in subparagraph (B)(ii), by inserting ``or service'' 
     after ``of an article''; and
       (iii) in subparagraph (C), by striking ``articles like or 
     directly competitive with articles which are produced'' and 
     inserting ``articles or services like or directly competitive 
     with articles or services which are produced or provided''; 
     and
       (C) by adding at the end the following:
       ``(e) Basis for Secretary Determination.--
       ``(1) Increased imports.--For purposes of subsection 
     (c)(1)(C), the Secretary may determine that increases of 
     imports of like or directly competitive articles or services 
     exist if customers accounting for not less than 20 percent of 
     the sales of the workers' firm certify to the Secretary that 
     they are obtaining such articles or services from a foreign 
     country.
       ``(2) Authority of the secretary.--The Secretary may obtain 
     the certifications under paragraph (1) through questionnaires 
     or in such other manner as the Secretary determines is 
     appropriate. The Secretary may exercise the authority under 
     section 249 in carrying out this subsection.''.
       (2) Authorization of appropriations.--Section 256(b) of the 
     Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by striking 
     ``$16,000,000'' and inserting ``$32,000,000''.
       (3) Definition.--Section 261 of the Trade Act of 1974 (19 
     U.S.C. 2351) is amended--
       (A) by striking ``For purposes of'' and inserting ``(a) 
     FIRM.--For purposes of''; and
       (B) by adding at the end the following:
       ``(b) Service Sector Firm.--For purposes of this chapter, 
     the term `service sector firm' means a firm engaged in the 
     business of providing services.''.
       (b) Industries.--Section 265(a) of the Trade Act of 1974 
     (19 U.S.C. 2355(a)) is amended by inserting ``or service'' 
     after ``new product''.
       (c) Technical Amendments.--
       (1) In general.--Section 249 of the Trade Act of 1974 (19 
     U.S.C. 2321) is amended by striking ``subpena'' and inserting 
     ``subpoena'' each place it appears in the heading and the 
     text.
       (2) Table of contents.--The table of contents for the Trade 
     Act of 1974 is amended by striking ``Subpena'' in the item 
     relating to section 249 and inserting ``Subpoena''.

     SEC. 4. MONITORING AND REPORTING.

       Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is 
     amended--
       (1) in the first sentence--
       (A) by striking ``The Secretary'' and inserting ``(a) 
     MONITORING PROGRAMS.--The Secretary'';
       (B) by inserting ``and services'' after ``imports of 
     articles'';
       (C) by inserting ``and domestic provision of services'' 
     after ``domestic production'';
       (D) by inserting ``or providing services'' after 
     ``producing articles''; and
       (E) by inserting ``, or provision of services,'' after 
     ``changes in production''; and
       (2) by adding at the end the following:
       ``(b) Collection of Data and Reports on Services Sector.--
       ``(1) Secretary of labor.--Not later than 3 months after 
     the date of the enactment of the Trade Adjustment Assistance 
     Equity for Service Workers Act of 2005, the Secretary of 
     Labor shall implement a system to collect data on adversely 
     affected service workers that includes the number of workers 
     by State, industry, and cause of dislocation of each worker.
       ``(2) Secretary of commerce.--Not later than 6 months after 
     such date of enactment, the Secretary of Commerce shall, in 
     consultation with the Secretary of Labor, conduct a study and 
     report to the Congress on ways to improve the timeliness and 
     coverage of data on trade in services, including methods to 
     identify increased imports due to the relocation of United 
     States firms to foreign countries, and increased imports due 
     to United States firms obtaining services from firms in 
     foreign countries.''.

     SEC. 5. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this Act shall take effect on the date 
     that is 60 days after the date of the enactment of this Act.
       (b) Special Rule for Certain Service Workers.--A group of 
     workers in a service sector firm, or subdivision of a service 
     sector firm, or public agency (as defined in section 247 (7) 
     and (8) of the Trade Act of 1974, as added by section 2(d) of 
     this Act) who--
       (1) would have been certified eligible to apply for 
     adjustment assistance under chapter 2 of title II of the 
     Trade Act of 1974 if the amendments made by this Act had been 
     in effect on November 4, 2002, and
       (2) file a petition pursuant to section 221 of such Act 
     within 6 months after the date of the enactment of this Act, 
     shall be eligible for certification under section 223 of the 
     Trade Act of 1974 if the workers' last total or partial 
     separation from the firm or subdivision of the firm or public 
     agency occurred on or after November 4, 2002 and before the 
     date that is 60 days after the date of the enactment of this 
     Act.

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