[Senate Report 106-119]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 211
106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-119

======================================================================



 
            TRADE ADJUSTMENT ASSISTANCE REAUTHORIZATION ACT

                                _______
                                

                 July 22, 1999.--Ordered to be printed

                                _______


    Mr. Roth, from the Committee on Finance, submitted the following

                              R E P O R T

                         [To accompany S. 1386]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Finance, having considered legislation to 
reauthorize existing trade adjustment assistance programs, 
reports favorably thereon and refers the bill to the full 
Senate with a recommendation that the bill do pass.

                             I. BACKGROUND

    The authorizations for the three existing Trade Adjustment 
Assistance (TAA) programs expire June 30, 1999. These programs 
were most recently authorized in Public Law 105-277, the 
Omnibus Consolidated and Emergency Appropriations Act, 1999, 
which was enacted on October 21, 1998. Prior to that 
reauthorization, the program's authorizations had expired on 
September 30, 1998. The Finance Committee passed legislation 
that would reauthorize the program on two occasions in the 
105th Congress. The first was as a part of S. 1269, the 
Reciprocal Trade Agreements Act of 1997, which passed the 
Committee on October 1, 1998. The second was as a part of S. 
2400, the Trade and Tariff Act of 1998, which passed the 
Committee on July 31, 1998.

                     II. GENERAL DESCRIPTION OF ACT


Section 1. Reauthorization of the trade adjustment assistance program

            Present law
    Title II of the Trade Act of 1974, as amended, authorizes 
three trade adjustment assistance (TAA) programs for the 
purpose of providing assistance to individual workers and firms 
that are adversely affected by import competition. Those 
programs are:
           the general TAA program for workers provides 
        training and income support for workers adversely 
        affected by import competition;
           the TAA program for firms provides technical 
        assistance to qualifying firms. (Both the TAA programs 
        for workers and for firms were first established by the 
        Trade Expansion Act of 1962);
           the North American Free Trade Agreement 
        (NAFTA) Transitional Adjustment Assistance (NAFTA-TAA) 
        program for workers (established by the North American 
        Free Trade Agreement Implementation Act of 1993), 
        provides training and income support for workers 
        adversely affected by imports from or production shifts 
        to Canada and/or Mexico;
    The authorizations for all three programs expire on June 
30, 1999. The TAA program for firms is also subject to annual 
appropriations.
            Explanation of provision
    Section 1 of the Act reauthorizes each of the three TAA 
programs through September 30, 2001. It also caps the amount of 
money legally entitled for any fiscal year from October 1, 1998 
to September 30, 2001 at 30,000,000 dollars.
            Effective date
    This provision is effective on the date of enactment.

Section 2. Add certain vaccines against streptococcus pneumonia to the 
        list of taxable vaccines (sec. 4132 of the Internal Revenue 
        Code)

            Present law
    A manufacturer's excise tax is imposed at the rate of 75 
cents per dose (sec. 4131) on the following vaccines 
recommended for routine administration to children: diphtheria, 
pertussis, tetanus, measles, mumps, rubella, polio, HIB 
(hemophilus influenza type B), hepatitis B, varicella (chicken 
pox), and rotavirus gastroenteritis. The tax applied to any 
vaccine that is a combination of vaccine components equals 75 
cents times the number of components in the combined vaccine.
    Amounts equal to net revenues from this excise tax are 
deposited in the Vaccine Injury Compensation Trust Fund to 
finance compensation awards under the Federal Vaccine Injury 
Compensation Program for individuals who suffer certain 
injuries following administration of the taxable vaccines. This 
program provides a substitute Federal, ``no fault'' insurance 
system for the State-law tort and private liability insurance 
systems otherwise applicable to vaccine manufacturers and 
physicians. All persons immunized after September 30, 1988, 
with covered vaccines must pursue compensation under this 
Federal program before bringing civil tort actions under State 
law.
            Reasons for change
    Streptococcus pneumonia (often referred to as pneumococcus) 
is a bacteria that can cause bacterial meningitis, a brain or 
spinal cord infection, bacteremia, a bloodstream infection, and 
otitis media (ear infection). The Committee understands that 
each year in the United States, pneumococcal disease accounts 
for an estimated 3,000 cases of bacterial meningitis, 50,000 
cases of bacteremia, 500,000 cases of pneumonia, and 7 million 
cases of otitis media among all age groups. The Committee 
understands that, while there currently is a vaccine effective 
in preventing pneumococcal diseases in adults, that vaccine, a 
polysaccaride vaccine, does not induce an adequate immune 
response in young children and therefore does not protect 
children against these diseases. The Committee further 
understands that the Food and Drug Administration's (the 
``FDA'') is expected to approve a new, conjugate vaccine 
against the disease and the Centers for Disease Control is 
expected to recommend this conjugate vaccinefor routine 
inoculation of children. The Committee believes American children will 
benefit from wide use of this new vaccine. The Committee believes that, 
by including the new vaccine with those presently covered by the 
Vaccine Injury Compensation Trust Fund, greater application of the 
vaccine will be promoted. The Committee, therefore, believes it is 
appropriate to add the conjugate vaccine against streptococcus 
pneumonia to the list of taxable vaccines.
            Explanation of provision
    Section 2 of the bill adds any conjugate vaccine against 
streptococcus pneumonia to the list of taxable vaccines.
            Effective date
    The provision is effective for vaccine purchases beginning 
on the day after the date on which the Centers for Disease 
Control make a final recommendation for routine administration 
of conjugated streptococcus pneumonia vaccines to children. No 
floor stocks tax is to be collected for amounts held for sale 
on that date. For sales on or before the date on which the 
Centers for Disease Control make final recommendation for 
routine administration of conjugated streptococcus pneumonia 
vaccines to children for which delivery is made after such 
date, the delivery date is deemed to be the sale date.

Section 3. Increase elective withholding rate for nonperiodic 
        distributions from deferred compensation plans (sec. 3405 of 
        the Code)

            Present law
    Present law provides that income tax withholding is 
required on designated distributions from employer compensation 
plans (whether or not such plans are tax qualified), individual 
retirement arrangements (``IRAs''), and commercial annuities 
unless the payee elects not to have withholding apply. A 
designated distribution does not include any payment (1) that 
is wages, (2) the portion of which it is reasonable to believe 
is not includible in gross income,1 (3) that is 
subject to withholding of tax on nonresident aliens and foreign 
corporations (or would be subject to such withholding but for a 
tax treaty), or (4) that is a dividend paid on certain employer 
securities (as defined in sec. 404(k)(2)).
---------------------------------------------------------------------------
    \1\ All IRA distributions are treated as if includible in income 
for purposes of this rule.
---------------------------------------------------------------------------
    Tax is generally withheld on the taxable portion of any 
periodic payment as if the payment is wages to the payee. A 
periodic payment is a designated distribution that is an 
annuity or similar periodic payment.
    In the case of a nonperiodic distribution, tax generally is 
withheld at a flat 10-percent rate unless the payee makes an 
election not to have withholding apply. A nonperiodic 
distribution is any distribution that is not a periodic 
distribution. Under current administrative rules, an individual 
receiving a nonperiodic distribution can designate an amount to 
be withheld in addition to the 10-percent otherwise required to 
be withheld.
    Under present law, in the case of a nonperiodic 
distribution that is an eligible rollover distribution, tax is 
withheld at a 20-percent rate unless the payee elects to have 
the distribution rolled directly over to an eligible retirement 
plan (i.e., an IRA, a qualified plan (sec. 401(a)) that is a 
defined contribution plan permitting direct deposits of 
rollover contributions, or a qualified annuity plan (sec. 
403(a)). In general, an eligible rollover distribution includes 
any distribution to an employee of all or any portion of the 
balance to the credit of the employee in a qualified plan or 
qualified annuity plan. An eligible rollover distribution does 
not include any distribution that is part of a series of 
substantially equal periodic payments made (1) for the life (or 
life expectancy) of the employee or for the joint lives (or 
joint life expectancies) of the employee and the employee's 
designated beneficiary, or (2) over a specified period of 10 
years or more. An eligible rollover distribution also does not 
include any distribution required under the minimum 
distribution rules of section 401(a)(9), hardship distributions 
from section 401(k) plans, or the portion of a distribution 
that is not includible in income. The payee of an eligible 
rollover distribution can only elect not to have withholding 
apply by making the direct rollover election.
            Reasons for change
    The present law's 10-percent withholding rate is lower than 
the lowest income tax rate. Increasing the withholding rate to 
the lowest income tax rate makes it more likely that some 
individuals who want withholding will have the correct amount 
of tax withheld.
            Explanation of provision
    Under section 3 of the bill, the withholding rate for 
nonperiodic distributions is increased from 10 percent to 15 
percent. As under present law, unless the distribution is an 
eligible rollover distribution, the payee could elect not to 
have withholding apply. The bill does not modify the 20-percent 
withholding rate that applies to any distribution that is an 
eligible rollover distribution.
            Effective date
    The provision is effective for distributions made after 
August 31, 1999.

                       III. CONGRESSIONAL ACTION

    The Committee considered the legislation in the form of an 
original bill on June 22, 1999, and ordered it reported 
favorably by voice vote.

                       IV. VOTES OF THE COMMITTEE

    In compliance with paragraph 7(b) of rule XXVI of the 
Standing Rules of the Senate, the following statements are made 
concerning the roll call votes in the Committee's consideration 
of the Trade Adjustment Assistance Reauthorization Act.

                      A. Motion to Report the Bill

    The Committee states that the Trade Adjustment Assistance 
Reauthorization Act was ordered favorably reported by voice 
vote on June 22, 1999.

                          B. Vote on Amendment

    An amendment by Senator Conrad and Senator Grassley was 
offered that would create a new TAA for farmers program to be 
administered by the United States Department of Agriculture. 
Under the proposed program, a farmer growing a commodity would 
be certified as eligible for assistance if (1) the national 
average price for the commodity for the year dropped more than 
20 percent compared to the average price in the previous 5 
years and (2) imports ``contributed significantly'' to the 
price reduction. If these two criteria are met, individual 
producers could apply for assistance. Farmers would receive a 
cash assistance payment equal to half the difference between 
the price for the year and 80 percent of the previous 5 years 
average price multiplied by the number of units the farmer had 
produced. These cash benefits would be capped at $10,000 per 
farmer. Training and other TAA benefits available to workers 
under TAA would also be available to farmers, but would not be 
required. Overall annual payments under this proposal would be 
capped at $100 million. The Committee states that this 
amendment was not agreed to by a roll call vote of 9 yeas and 
11 nays, as follows:
    Yeas.--Senators Grassley, Murkowski (proxy), Baucus, 
Rockefeller (proxy), Breaux, Conrad, Graham, Bryan (proxy), and 
Kerrey (proxy).
    Nays.--Senators Roth, Chafee, Hatch (proxy), Nickles 
(proxy), Gramm (proxy), Lott, Jeffords (proxy), Mack, Thompson 
(proxy), Moynihan, Robb (proxy).

                          V. BUDGETARY IMPACT


                         A. Committee Estimates

    In compliance with sections 308 and 403 of the 
Congressional Budget Act of 1974, and paragraph 11(a) of rule 
XXVI of the Standing Rules of the Senate, the following 
statement is made concerning the estimated budget effects of 
the bill.

                                                       ESTIMATED BUDGET EFFECTS OF THE ``TRADE ADJUSTMENT ASSISTANCE REAUTHORIZATION ACT''
                                                                          [Fiscal years 1999-2009, millions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                        2000-    2005-    2000-
                   Provision                               Effective             1999   2000    2001    2002    2003    2004    2005    2006    2007    2008    2009     2004     2009     2009
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Extension of Regular and NAFTA Trade            7/1/99                             -5     -25     -40     -28     -12      -7      -7      -7      -7      -7      -7     -112      -35     -147
 Adjustment Assistance Programs \1\.
Revenue Offset Provisions:
    1. Optional withholding for nonqualified    dma 8/31/99                         6      46       1       1       1       1       1       1       1       1       1       49        4       53
     deferred compensation.
    2. Include the Streptococcus Pneumonia      (\2\)                           .....       4       7       9      10      10      10      10      10      10      11       39       52       91
     vaccine in the Federal vaccine insurance
     program.
                                                                               -----------------------------------------------------------------------------------------------------------------
      Net total...............................  ..............................      1      25     -32     -18      -1       4       4       4       4       4       5      -24       21       -3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Estimate provided by the Congressional Budget Office.
\2\ Effective for vaccine sales the day after the date on which the Centers for Disease Control make final recommendation for routine administration of conjugate Streptococcus Pneumonia
  vaccines to children.

Legend for ``Effective'' column: dmn=distributions made after.

Note.--Details may not add to totals due to rounding.

Source: Joint Committee on Taxation.

                B. Budget Authority and Tax Expenditures

1. Budget Authority

    In accordance with section 308(a)(1) of the Budget Act the 
Committee states that the Trade Adjustment Assistance 
Reauthorization Act involves new budget authority of $151 
million over the 1999-2009 period to cover the outlays under 
the Act.

2. Tax Expenditures

    In accordance with section 308(a)(2) of the Budget Act, the 
Committee states that the provisions of the Trade Adjustment 
Assistance Reauthorization Act will result in no change in tax 
expenditures over the period fiscal years 1999-2009.

            C. Consultation with Congressional Budget Office

    In accordance with section 403 of the Budget Act, the 
Committee advises that the Congressional Budget Office has 
submitted the following statement on the budgetary impact of 
the Trade Adjustment Assistance Reauthorization Act:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 16, 1999.
Hon. William V. Roth, Jr.,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget office has 
prepared the enclosed cost estimate for a bill to amend the 
Trade Act of 1974 to extend the authorization for trade 
adjustment assistance.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Christina 
Hawley Sadoti.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

A bill to amend the Trade Act of 1974 to extend the authorization for 
        trade adjustment assistance

    Summary: This bill would amend the Trade Act of 1974 to 
extend the authorization for trade adjustment assistance 
through September 30, 2001. Authorization for the trade 
adjustment assistance program expired June 30, 1999. In 
addition, the bill would add certain vaccines against 
streptococcus pneumonia to the list of taxable vaccines and 
would increase the elective withholding rate for nonperiodic 
distributions from deferred compensation plans from 10 percent 
to 15 percent. The Joint Committee on Taxation (JCT) estimates 
that the bill would increase receipts to the federal government 
by $152 million over fiscal years 1999 through 2009. CBO 
estimates that the bill would increase direct spending by $151 
million over the 1999-2009 period. In total, the bill would 
increase the surplus by $1 million over 11 years. The bill also 
would increase authorizations of appropriations by $20 million 
over the same period. Because the bill would affect direct 
spending and receipts, pay-as-you-go procedures would apply.
    The JCT has determined that the two revenue provisions 
constitute private-sector mandates as defined in the Unfunded 
Mandates Reform Act (UMRA). However, the cost of those mandates 
would not exceed the private-sector threshold specified in UMRA 
($100 million in 1996, adjusted annually for inflation). The 
provision to impose the vaccine excise tax on the streptococcus 
pneumonia vaccine would also impose an intergovernmental 
mandate with costs that do not exceed the threshold established 
in UMRA ($50 million in 1996, adjusted annually for inflation).
    Estimated cost to the Federal Goverment: The estimated 
budgetary impact of the bill is shown in the following table. 
In addition to affecting revenues, the bill would affect 
spending in budget functions 450 (community and regional 
development), 500 (education, employment, training, and social 
services), 550 (health), and 600 (income security).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal years, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                                 DIRECT SPENDING

Baseline Spending Under Current Law \1\:
    Estimated Budget Authority......................   108,359   117,481   125,798   135,945   147,157   160,248
    Estimated Outlays...............................   108,359   117,493   125,800   135,945   147,157   160,248
Proposed Changes:
    Estimated Budget Authority......................        10        42        45         6         6         7
    Estimated Outlays...............................         5        25        40        28        12         7
Spending Under the Bill:
    Estimated Budget Authority......................   108,369   117,523   125,843   135,951   147,163   160,255
    Estimated Outlays...............................   108,364   117,518   125,840   135,973   147,169   160,255

                                               CHANGES IN REVENUES

Include Streptococcus Pneumonia Vaccine in the               0         4         7         9        10        10
 Federal Vaccine Insurance Program..................
Optional Withholding for Nonqualified Deferred               6        46         1         1         1         1
 Compensation.......................................
                                                     -----------------------------------------------------------
      Total Revenues................................         6        50         8        10        11        11

                                        SPENDING SUBJECT TO APPROPRIATION

Trade Adjustment Assistance for Firms Spending Under
 Current Law:
    Budget Authority \2\............................        10         0         0         0         0         0
    Estimated Outlays...............................         9         9         6         5         2         0
Proposed Changes:
    Estimated Authorization Level...................         0        10        10         0         0         0
    Estimated Outlays...............................         0     (\3\)         3         4         5         5
Spending Under the Bill:
    Estimated authorization Level \2\...............        10        10        10         0         0         0
    Estimated Outlays...............................         9         9         9         9         7        5
----------------------------------------------------------------------------------------------------------------
\1\ Baseline spending under current law includes Trade Adjustment Assistance for Workers ($321 millin in 1999),
  the National Vaccine Injury Compensation Trust Fund ($61 million in 1999), and Medicaid ($108 billion in
  1999).
\2\ The 1999 level is the amount appropriated for that year.
\3\ Less than $500,000.

Basis of Estimate

            Direct spending
    The trade adjustment assistance (TAA) program for workers 
provides transitional adjustment assistance for workers who are 
dislocated as a result of federal policies that reduce barriers 
to foreign trade. The program has two components--one for all 
workers and one for workers dislocated due to implementation of 
the North American Free Trade Agreement (NAFTA). Both programs 
provide income support and job training assistance to workers 
who are certified to receive benefits. Together, the two 
programs are estimated to have outlays of $321 million for 
fiscal year 1999. These programs expired on June 30, 1999. The 
bill would extend them through fiscal year 2001. The costs of 
extending the main TAA program are included in the baseline, as 
required by the Balanced Budget and Emergency Deficit Control 
Act. However, the costs of extending the NAFTA portion of TAA 
are not included in the baseline.
    CBO estimates that extending the NAFTA portion of TAA would 
cost $91 million over the 1999-2004 period. The proposed 
legislation would authorize the program through fiscal year 
2001, and it would raise the cap on training for the NAFTA 
program to $30 million. When Congress extended the program in 
October 1998, it reduced the annual cap on training costs from 
$30 million to $15 million. Although enactment of the bill 
would return the cap to its original level, CBO estimates that 
spending under the training program would be less than the 
capped amount.
    In addition, the bill would add conjugate vaccines against 
streptococcus pneumonia to the list of taxable vaccines and 
thus would allow for compensation for injuries related to those 
vaccines from the National Vaccine Injury Compensation Trust 
Fund. CBO estimates that this provision will increase outlays 
by $4 million over the 1999-2004 period. This provision would 
also increase federal Medicaid outlays by $21 million over the 
1999-2004 period because the Medicaid vaccines for children 
program would be required to pay the excise tax on purchases of 
vaccines against streptococcus pneumonia. The federal 
government purchases about one-half of all vaccines through 
this program.
            Revenues
    The bill would add certain vaccines against streptococcus 
pneumonia to the list of taxable vaccines and would increase 
the elective withholding rate for nonperiodic distributions 
from deferred compensation plans from 10 percent to 15 percent. 
JCT estimates that including the additional vaccines in federal 
insurance programs would being in an additional $40 million 
over the 1999-2004 period. JCT estimates that the change in the 
optional withholding rate change would increase revenues by $56 
million over the same period.
            Spending subject to appropriation
    The bill would authorize the application of such sums as 
necessary for trade adjustment assistance for firms for fiscal 
years 2000 and 2001. CBO estimates that this provision would 
result in outlays of about $17 million over the 2000-2004 
period, assuming appropriation of the necessary amounts. This 
estimate assumes that the amount appropriated each year under 
this authorization would be about $10 million, the same as the 
amount appropriated in 1999. Estimated outlays are based on 
historical spending rates for this program.
    Also, by adding conjugate vaccines against streptococcus 
pneumonia to the list of taxable vaccines, the cost of vaccines 
purchased under section 317 of the Public Health Service Act 
could rise. Section 317 authorizes grants to states for the 
purchase of vaccines under federal contracts with vaccines 
manufacturers. Any increase in spending under this section 
would be subject to the annual appropriation process.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays and governmental receipts that are subject 
to pay-as-you-go procedures are shown in the following table. 
For the purposes of enforcing pay-as-you-go procedures, only 
the effects in the current year, the budget year, and the 
succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                      By fiscal years, in millions of dollars--
                                    ----------------------------------------------------------------------------
                                      1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      5     25     40     28     12      7      7      7      7      7      7
Changes in receipts................      6     50      8     10     11     11     11     11     11     11     12
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: The JCT has 
determined that the two revenue provisions constitute private-
sector mandates as defined in UMRA. However, the cost of those 
mandates would not exceed the private-sector threshold 
specified in UMRA ($100 million in 1996, adjusted annually for 
inflation). The provision to impose the vaccine excise tax on 
the streptococcus pneumonia vaccine would also impose an 
intergovernmental mandate of less than the threshold 
established in UMRA ($50 million in 1996, adjusted annually for 
inflation).
    Estimate prepared by: Federal cost: Christina Hawley Sadoti 
(TAA for workers); Mark Hadley (TAA for firms); and Jeanne De 
Sa (NVIC Trust Fund and Medicaid). Impact on State, local, and 
tribal governments: Leo Lex. Impact on private sector: Ralph 
Smith.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

              VI. REGULATORY IMPACT AND UNFUNDED MANDATES


                          A. Regulatory Impact

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
statement concerning the regulatory impact of the Trade 
Adjustment Assistance Reauthorization Act.

1. Impact on individuals and businesses

    The Committee states that the non-revenue offset portion of 
the Act does not alter any of the substantive or procedural 
requirements of the programs involved and would not, as a 
consequence, involve any new paperwork or regulatory burdens on 
individuals.
    The bill provides the following revenue offsets: (1) an 
increase in the elective withholding rate for nonperiodic 
distributions from deferred compensation plans; and (2) the 
inclusion of the streptococcus pneumonia vaccine as a taxable 
vaccine in the federal vaccine insurance program, effective for 
vaccine purchases the day after the date on which the Centers 
for Disease Control make final recommendation for routine 
administration of conjugated streptococcus pneumonia vaccines 
to children. The revenue offset provisions will increase the 
tax burden on the affected taxpayers.

2. Impact on personal privacy and paperwork

    The Trade Adjustment Assistance Reauthorization Act will 
have no impact on personal privacy or paperwork.

              B. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4). 
The Committee on Finance has reviewed the provisions of the 
Trade Adjustment Assistance Reauthorization Act as approved by 
the Committee on June 22, 1998. In accordance with the 
requirements of Public Law 104-4, the Committee has determined 
that the revenue provisions of the bill contain the following 
private sector mandates:
           optional withholding for nonqualified 
        deferred compensation; and
           include the streptococcus pneumonia vaccine 
        in the Federal vaccine insurance program.
    The imposition of the vaccine excise tax on the 
streptococcus pneumonia vaccine will impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments of less than $50 million in the first fiscal year 
and in each of the four fiscal years following the first fiscal 
year.
    The Committee has determined that it is necessary to 
include these provisions in the bill to provide revenue offsets 
for the trade initiatives approved by the Committee.

                       C. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service Reform and 
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the 
Joint Committee on Taxation (in consultation with the Internal 
Revenue Service and the Department of the Treasury) to provide 
a tax complexityanalysis. The complexity analysis is required 
for all legislation reported by the Senate Committee on Finance, the 
House Committee on Ways and Means, or any committee of conference if 
the legislation includes a provision that directly or indirectly amends 
the Internal Revenue Code (the ``Code'') and has widespread 
applicability to individuals or small businesses.
    The staff of the Joint Committee on Taxation has determined 
that a complexity analysis is not required under section 
4022(b) of the IRS Reform Act because the bill contains no 
provisions that amend the Internal Revenue Code and that have 
widespread applicability to individuals or small businesses.

                      VII. CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TRADE ACT OF 1974

           *       *       *       *       *       *       *



SEC. 245. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to 
the Department of Labor, for the period beginning October 21, 
1998, and ending [June 30, 1999] September 30, 2001, such sums 
as may be necessary to carry out the purposes of this chapter, 
other than subchapter D.
    (b) Subchapter D.--There are authorized to be appropriated 
to the Department of Labor, for the period beginning October 1, 
1998, and ending [June 30, 1999] September 30, 2001, such sums 
as may be necessary to carry out the purposes of subchapter D 
of this chapter.

           *       *       *       *       *       *       *


     Subchapter D--NAFTA Transitional Adjustment Assistance Program


SEC. 250. ESTABLISHMENT OF TRANSITIONAL PROGRAM.

           *       *       *       *       *       *       *


    (d) Comprehensive Assistance.--Workers covered by 
certification issued by the Secretary under subsection (c) of 
this section shall be provided, in the same manner and to the 
same extent as workers covered under a certification under 
subpart A of this part, the following:
          (1) Employment services described in section 2295 of 
        this title.
          (2) Training described in section 2296 of this title, 
        except that notwithstanding the provisions of section 
        2296(a)(2)(A) of this title, the total amount of 
        payments for training under this subpart for [the 
        period beginning October 1, 1998, and ending June 30, 
        1999, shall not exceed $15,000,000] the period 
        beginning October 1, 1998, and ending September 30, 
        2001, shall not exceed $30,000,000 for any fiscal year.

           *       *       *       *       *       *       *


SEC. 256. DELEGATION OF FUNCTIONS TO SMALL BUSINESS ADMINISTRATION; 
                    AUTHORIZATION OF APPROPRIATIONS.

           *       *       *       *       *       *       *


    (b) There are hereby authorized to be appropriated to the 
Secretary for the period beginning October 1, 1998, and ending 
[June 30, 1999] September 30, 2001 such sums as may be 
necessary to carry out his functions under this part in 
connection with furnishing adjustment assistance to firms 
(including, but not limited to, the payment of principal, 
interest, and reasonable costs incident to default on loans 
guaranteed by the Secretary under the authority of this part), 
which sums are authorized to be appropriated to remain 
available until expended.

           *       *       *       *       *       *       *


SEC. 285. TERMINATION.

    (A) Chapter 4 shall terminate on September 30, 1982.
    (b) No duty shall be imposed under section 287, after 
September 30, 1993.
    (c)(1) Except as provided in paragraph (2), no assistance, 
vouchers, allowances, or other payments may be provided under 
chapter 2, and no technical assistance may be provided under 
chapter 3, after [June 30, 1999] September 30, 2001.
    (2)(A) Except as provided in subparagraph (B), no 
assistance, vouchers, allowances, or other payments may be 
provided under subchapter D of chapter 2 after [June 30, 1999] 
September 30, 2001.
    (B) Notwithstanding subparagraph (A), if, on or before the 
day described in subparagraph (A), a worker--
        (i) is certified as eligible to apply for assistance, 
        under subchapter D of chapter 2; and
        (ii) is otherwise eligible to receive assistance in 
        accordance with section 250.
such worker shall continue to be eligible to receive such 
assistance for any week for which the worker meets the 
eligibility requirements of such section.

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                        INTERNAL REVENUE CODE

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SEC. 3405. SPECIAL RULES FOR PENSIONS, ANNUITIES, AND CERTAIN OTHER 
                    DEFERRED INCOME.

    (a) Periodic Payments.--

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    (b) Nonperiodic Distribution.--
          (1) Withholding.--The payor of any nonperiodic 
        distribution (as defined in subsection (e)(3)) shall 
        withhold from such distribution an amount equal to [10 
        percent] 15 percent of such distribution.

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SEC. 4132. DEFINITIONS AND SPECIAL RULES.

    (a) Definitions Relating to Taxable Vaccines.--For purposes 
of this subchapter--
          (1) Taxable vaccine.--The term ``taxable vaccine'' 
        means any of the following vaccines which are 
        manufactured or produced in the United States or 
        entered into the United States for consumption, use, or 
        warehousing:
                  (A) Any vaccine containing diphtheria toxoid.
                  (B) Any vaccine containing tetanus toxoid.
                  (C) Any vaccine containing pertussis 
                bacteria, extracted or partial cell bacteria, 
                or specific pertussis antigens.
                  (D) Any vaccine against measles.
                  (E) Any vaccine against mumps.
                  (F) Any vaccine against rubella.
                  (G) Any vaccine containing polio virus.
                  (H) Any HIB vaccine.
                  (I) Any vaccine against hepatitis B.
                  (J) Any vaccine against chicken pox.
                  (K) Any vaccine against rotavirus 
                gastroenteritis.
                  (L) Any conjugate vaccine against 
                streptococcus pneumoniae.

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