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

      By Mr. BAUCUS:
  S. 1308. A bill to establish an Office of Trade Adjustment 
Assistance, and for other purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, today I 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 that 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.
  For example, TAA for Firms is helping Montola Growers from 
Culbertson, Montana, to develop cosmetic applications for its safflower 
oil. And it is helping Porterbilt Company of Hamilton to expand its 
product line.
  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 the Commerce 
Department's Economic Development Administration.
  In the Trade Act of 2002, 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 began more than a year 
ago to move all its headquarters programs to its six regional offices. 
For TAA for Firms, that means clients will still get the same local 
services from the TAACs, but decisions will be made in six regional 
offices plus a national policy office. The likely result is more 
personnel needed to run the program, more layers of government, less 
centralized and consistent decision making, and less accountability--
all without any likely improvement in customer service.
  In preparation for this reorganization, EDA transferred or otherwise 
eliminated most of its experienced TAA staff in the Washington office. 
But to date it has not completed the transfer and hired or trained the 
necessary regional staff. So the program is in limbo.
  Meanwhile, the President recently announced a multi-agency 
consolidation of economic development programs that will eliminate EDA 
and its regional offices. Not surprisingly, the latest word from EDA is 
that plans to complete the move of TAA for Firms to the regional 
offices are now on indefinite hold. The President's fiscal year 2006 
budget zeroes out TAA for Firms, even though Congress has authorized 
the program through fiscal year 2007. With funding in doubt and the 
Washington-based management structure for TAA for Firms already largely 
dismantled, this program is on the verge of a crisis.
  TAA for Firms was not broken until someone decided to fix it. Now it 
is doomed to stay in limbo unless Congress acts to clean up the mess.
  The bill I am introducing today solves these problems by moving 
administration of the TAA for Firms program from EDA into a different 
part of the Commerce Department--the International Trade 
Administration. I introduced this same bill last year with 15 co-
sponsors.
  Relocating the program to ITA makes sense. ITA has experience running 
this program, which was located there prior to 1990. Relocating TAA for 
Firms to ITA will result in fewer lays of government and more 
centralized and accountable program management than running it through 
EDA's regional offices or some new economic development agency.
  Relocating the program 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 do not want to see this important TAA program die of neglect. This 
legislation is a simple matter of good, sensible government. I 
encourage my colleagues to lend it their support.
  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. 1308

       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''.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       Section 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b)) 
     is amended by striking ``2007'' and inserting ``2012''.
                                 ______