[Senate Report 107-134]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 313
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-134

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



 
     TRADE ADJUSTMENT ASSISTANCE FOR WORKERS, FARMERS, FISHERMEN, 
                   COMMUNITIES, AND FIRMS ACT OF 2002

                                _______
                                

                February 4, 2002.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                         [To accompany S. 1209]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Finance, to which was referred the bill 
(S. 1209) to amend the Trade Act of 1974, to consolidate and 
improve trade adjustment assistance programs, to provide 
community-based economic development assistance for trade-
affected communities, and for other purposes, reports favorably 
thereon with an amendment in the nature of a substitute and 
refers the bill as amended to the Senate with a recommendation 
that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Background and Summary...........................................2
 II. General Explanation..............................................3
III. Section-by-Section Analysis......................................6
          Title I--Trade Adjustment Assistance for Workers.......     7
          Title II--Trade Adjustment Assistance for Firms........    22
          Title III--Trade Adjustment Assistance for Communities.    23
          Title IV--Trade Adjustment Assistance for Farmers......    32
          Title V--Trade Adjustment Assistance for Fishermen.....    36
          Title VI--Health Insurance Coverage Options for Workers 
              Eligible for Trade Adjustment Assistance...........    41
          Title VII--Conforming and Effective Date...............    44
          Title VIII--Savings Provisions and Effective Date......    44
          Title IX--Customs Reauthorization......................    45
          Title X--Miscellaneous Provisions......................    46
  IV Congressional Action............................................47
  V. Vote of the Committee in Reporting the Bill.....................47
 VI. Budgetary Impact of the Bill....................................48
VII. Regulatory Impact and Other Matters.............................60
VIII.Minority and Additional Views...................................64

 IX. Changes in Existing Law Made by the Bill, as Reported...........74

                       I. BACKGROUND AND SUMMARY

    Trade Adjustment Assistance (TAA) was first enacted by the 
Trade Expansion Act of 1962 (P.L. 87-794) and substantially 
modified by the Trade Act of 1974 (P.L. 93-618). Until 1993, it 
consisted of two programs, TAA for workers and TAA for firms. A 
third TAA program, the North American Free Trade Agreement 
Transitional Adjustment Assistance program (NAFTA-TAA), was 
added by the North American Free Trade Agreement Implementation 
Act of 1993 (P.L. 103-182). Income support under both TAA and 
NAFTA-TAA for workers are entitlement programs. Other aspects 
of the TAA programs are subject to annual appropriations. The 
authorization for the three existing Trade Adjustment 
Assistance programs expired on September 30, 2001.
    The purpose of the TAA programs is to provide assistance to 
workers who lose their jobs and firms that face layoffs as a 
consequence of import competition. Since it began, TAA for 
workers has covered mostly manufacturing workers, with a 
substantial portion of program participants being steel and 
automobile workers in the mid- to late-1970s to early 1980s, 
and light industry and apparel workers in the mid- to late-
1990s. In fiscal years 1995 through 1999, the estimated number 
of workers covered by certifications under the two TAA for 
workers programs averaged 167,000 annually, reaching a high of 
about 228,000 in 1999, despite a falling overall unemployment 
rate. During the same period, approximately 784 firms were 
certified under the TAA for firms program. Participating firms 
represent a broad array of industries producing manufactured 
products, including auto parts, agricultural equipment, 
electronics, jewelry, circuit boards, and textiles, as well as 
some producers of agricultural and forestry products.
    S. 1209 reauthorizes, reforms, and expands trade adjustment 
assistance. Its principal purposes are to combine the TAA and 
NAFTA-TAA programs for workers; broaden eligibility criteria 
and enhance program efficiency and accountability under the 
unified TAA for workers program; reauthorize the TAA for firms 
program; provide adjustment assistance to trade-impacted 
communities; and make TAA benefits available to farmers, 
ranchers, and fishermen.
    Additionally, the bill contains three miscellaneous 
provisions. The first authorizes certain appropriations for the 
United States Customs Service, United States International 
Trade Commission, and Office of the United States Trade 
Representative in fiscal years 2002 and 2003 and expresses the 
sense of the Senate that customs user fees should be used only 
for the operations and programs of the Customs Service. The 
second provides for country of origin labeling of fish and 
shellfish products. The third creates a mechanism for 
eliminating circumvention of tariff-rate quotas on sugars, 
syrups, and sugar-containing products.

                        II. GENERAL EXPLANATION


                             A. Current Law

    Title II of the Trade Act of 1974, as amended, authorizes 
three trade adjustment assistance programs for purposes of 
providing assistance to individual workers and firms that are 
adversely affected by import competition. Those programs are
          The general TAA program for workers, which provides 
        training and income support for workers adversely 
        affected by import competition;
          The TAA program for firms, which provides technical 
        assistance to qualifying firms; and
          The NAFTA-TAA program for workers, which provides 
        training and income support for workers adversely 
        affected by imports from or production shifts to Canada 
        and/or Mexico.
    All three trade adjustment assistance programs expired on 
September 30, 2001. A measure to continue the three trade 
adjustment assistance programs in their current form for 15 
months (through December 31, 2002) was included in section 503 
of H.R. 3090 as reported inthe Senate by the Committee on 
Finance on November 9, 2001.

                           B. Recent Findings

    International trade and investment result in both benefits 
and costs to the U.S. economy. The benefits, which include 
greater consumer choice and lower prices, can be enjoyed by all 
Americans. But international trade and investment can also 
result in significant numbers of plant closings and job losses 
throughout the economy. These negative consequences are highly 
concentrated by industry, region, and worker demographics. 
Although the benefits of increased trade and investment on the 
economy as a whole may outweigh the costs borne by a few, these 
costs cannot be ignored. In the short-term, the rationale 
behind the trade adjustment assistance program is that, when 
the Government takes actions to liberalize trade, the 
Government has a responsibility to assist those workers 
adversely affected by the resulting increased trade and outward 
investment. Such assistance is a small price to pay in exchange 
for the benefits trade and investment provide to the economy as 
a whole. In the longer-term, moreover, providing effective 
retraining to American workers will ultimately enhance their 
ability, and that of their employers, to compete with their 
counterparts in other countries, enhancing the competitive 
advantages of the United States in international markets. TAA 
further enhances U.S. competitiveness by encouraging labor 
market flexibility, ensuring that workers are employed in the 
most productive industries.
    In a recent survey, 66 percent of respondents agreed with 
the following statement: ``I favor free trade, and I believe 
that it is necessary for the government to have programs to 
help workers who lose their jobs.'' K. Scheve & M. Slaughter, 
Globalization and the Perceptions of American Workers 
(Institute for International Economics 2001) at 96. That same 
study found, however, that nearly 57 percent of Americans 
surveyed believe that Government efforts to help retrain 
workers who have lost jobs due to international trade have not 
been adequate. Id. at 94, citing Program on International 
Policy Attitudes (Oct. 1999). As William Reinsch, President, 
National Foreign Trade Council, testified at the Finance 
Committee's July 19 hearing on reauthorization of the trade 
adjustment assistance program, ``[t]he obvious conclusion to 
draw, is that broad-based support for open trade is 
significantly enhanced by, if not dependent on, the 
government's commitment to assistance for the victims of the 
changes brought on by such trade.'' U.S. Senate, Committee on 
Finance, Hearing on Trade Adjustment Assistance (July 19, 2001) 
(hereinafter ``July 19 Hearing Tr.'') at 41.
    Recent studies also make clear that trade-impacted workers 
face significant challenges in their efforts to adjust to job 
losses. In particular, the demographic characteristics of 
workers displaced from import-competing industries result, on 
average, in a more difficult adjustment than for other 
displaced manufacturing workers or for displaced American 
workers as a whole. As noted in L. Kletzer, Job Losses from 
Imports: Measuring the Costs (Institute for International 
Economics 2001) at 78-79, workers displaced from import-
competing manufacturing jobs tend to be disproportionately 
older, less educated, and longer-tenured than other displaced 
manufacturing workers. These findings are consistent with 
Department of Labor data, which show that nationwide, almost 
two-thirds of TAA and NAFTA-TAA participants are women with an 
average age of 43; 25 percent have less than a high school 
education when laid off; and about 20 percent have limited 
English proficiency. U.S. General Accounting Office, Trade 
Adjustment Assistance: Experiences of Six Trade-Impacted 
Communities, GAO-01-838 at 19 (Aug. 2001). These demographic 
characteristics are statistically associated with a lower 
likelihood of reemployment. Indeed, survey data bear out that 
import-competing displaced workers become reemployed at 
consistently lower rates than displaced manufacturing workers 
as a whole. Kletzer at 78-79. Nor do the difficulties faced by 
trade-impacted workers end with reemployment. Rather, these 
workers experience an average 13 percent earnings loss in their 
new jobs. While some trade-impacted workers find jobs paying 
the same or more as their former employment, 25 percent report 
earnings losses of 30 percent or more. Id.
    In 1999, Congress voted to reauthorize the three TAA 
programs for only 2 years, rather than the typical 5 years, in 
order to provide an opportunity to evaluate the programs and 
develop reform proposals. At that time, no major changes had 
been made in the programs in over 20 years, despite the fact 
that the United States had entered into many new trade 
liberalizing agreements and the volume of international trade 
and investment had increased significantly. In the Africa 
Growth and Opportunity Act of 1999, Congress requested the 
General Accounting Office (GAO) to perform several evaluations 
of TAA and identify areas where the programs could be improved. 
These evaluations included a study of numerous cases of trade-
related plant closings and mass layoffs in various communities 
around the country.
    At the same time, in response to several large plant 
closings in New Mexico due to increased imports and shifts in 
production to other countries, Senator Bingaman began working 
with various Government agencies to explore options for 
assisting the workers, firms, and communities adversely 
affected by the closings. This exercise revealed many 
weaknesses in the current programs and highlighted areas which 
needed improvement, as discussed in H. Rosen, ``A New Approach 
to Assist Trade-Affected Workers and Their Communities: the 
Roswell Experiment,'' 1 Journal of Law and Border Studies 
(2001).
    In 2000 and 2001, the General Accounting Office released 
four reports evaluating current trade adjustment assistance 
programs for workers, firms, and communities. Those reports 
made the following findings and recommendations:
          Administration of the TAA and NAFTA-TAA programs 
        should be simplified by standardizing time frames for 
        workers to enter training, training waiver policies for 
        certified workers, and time frames for completing 
        certification investigations;
          Time limits for enrolling in training and permitted 
        breaks in training are not flexible enough to 
        accommodate training provider schedules and worker 
        needs;
          All TAA programs lack effective performance 
        measurement systems to track participant outcomes;
          Inconsistency between the period of time workers 
        receive income support (18 months) and training (24 
        months) limit training options, particularly for 
        workers with no high school diploma or limited English, 
        and encourage workers to drop out before completing 
        training;
          Unstable funding for training benefits results in 
        delayed approval of training requests; and
          Existing TAA programs do little to assist trade-
        impacted communities develop human capital and physical 
        infrastructure needed to attract employment and achieve 
        long-term economic adjustment.
U.S. General Accounting Office, Trade Adjustment Assistance: 
Trends, Outcomes, and Management Issues in Dislocated Worker 
Programs, GAO-01-59 (Oct. 2000); U.S. General Accounting 
Office, Trade Adjustment Assistance: Impact of Federal 
Assistance to Firms Is Unclear, GAO-01-12 (Dec. 2000); U.S. 
General Accounting Office, Trade Adjustment Assistance: 
Opportunities to Improve the Community Adjustment and 
Investment Program, GAO/NSIAD-00-229 (Sept. 2000); U.S. General 
Accounting Office, Trade Adjustment Assistance: Experiences of 
Six Trade-Impacted Communities, GAO-01-838 (Aug. 2001).
    On November 14, 2000, the Congressionally appointed, 
bipartisan U.S. Trade Deficit Review Commission released its 
final report. The Commission was chaired by Murray Weidenbaum, 
and made up of members C. Richard D'Amato, Michael R. Wessel, 
Dimitri B. Papadimitriou, Donald Rumsfeld, Carla A. Hills, 
Wayne D. Angell, Kenneth Lewis, Robert B. Zoellick, George 
Becker, Anne O. Krueger, and Lester C. Thurow. While members of 
the Commission differed sharply on the causes of and remedies 
for the current trade deficit, there was broad, bipartisan 
agreement on the need for expanded adjustment assistance. The 
Commission's report, which refers to TAA as a ``much 
appreciated source of help and hope for trade-impacted 
workers,'' made a series of recommendations for improving the 
programs, including the following:
          Consolidate TAA and NAFTA-TAA, unifying and 
        simplifying the programs' rules and regulations;
          Provide coverage to secondarily affected workers 
        (i.e., workers in industries that supply trade-affected 
        industries);
          Provide for more local control and flexibility to 
        improve the coordination of workers' needs and local 
        educational and training course schedules;
          Provide income support for a longer period, if more 
        time is needed for training;
          Provide adequate funds for the programs' benefits and 
        administration;
          Consider wage insurance as an option in addressing 
        job displacement; and
          Fill the gap in health insurance coverage between the 
        time when a worker loses one job and starts another.
U.S. Trade Deficit Review Commission, The U.S. Trade Deficit: 
Causes, Consequences and Recommendations for Action (Nov. 
2000), Chapter 5.
    These themes were repeated in hearings on reauthorization 
of the trade adjustment assistance programs held before the 
Committee on Finance on July 19, 2001, and before the 
Subcommittee on International Trade on July 20, 2001. Witnesses 
at these hearings highlighted the need to:
          Harmonize the timing and eligibility requirements for 
        TAA and NAFTA-TAA;
          Extend income support to 78 weeks to match available 
        training benefits and make the training enrollment 
        period more flexible to meet local needs;
          Create program performance measures;
          Assure an adequate and stable source of funding for 
        worker training benefits under TAA and NAFTA-TAA and 
        for technical assistance projects under the TAA for 
        firms program;
          Assist trade-impacted workers with the cost of health 
        insurance to facilitate retraining;
          Help trade-impacted communities respond to mass 
        layoffs and achieve long-term economic adjustment; and
          Make trade adjustment assistance benefits available 
        to farmers, ranchers, and fishermen who often do not 
        qualify for existing trade adjustment assistance 
        programs.
U.S. Senate, Committee on Finance, Hearing on Trade Adjustment 
Assistance (July 19, 2001) (hereinafter ``July 19 Hearing 
Tr.''); U.S. Senate, Committee on Finance, Subcommittee on 
International Trade, Hearing on Trade Adjustment Assistance 
(July 20, 2001) (hereinafter ``July 20 Hearing Tr.'').

                    III. SECTION-BY-SECTION ANALYSIS


Section 1. Short title; table of contents

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    Section 1 of S. 1209, as amended, provides that the Act may 
be cited as the ``Trade Adjustment Assistance for Workers, 
Farmers, Fishermen, Communities, and Firms Act of 2002''.

                           REASONS FOR CHANGE

    The section names the legislation for identification 
purposes.

           TITLE I.--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS


Section 101. Adjustment Assistance for Workers

    Section 101 of the Act amends chapter 2 of title II of the 
Trade Act of 1974 by replacing the text in sections 221 through 
250 with revised text described as follows.
            Section 221. Definitions

                              PRESENT LAW

    Current section 247 provides specific definitions related 
to the trade adjustment assistance for workers program.

                        EXPLANATION OF PROVISION

    New section 221 provides specific definitions related to 
the revised trade adjustment assistance for workers program.

                           REASONS FOR CHANGE

    Revision is needed to define new terms and conform existing 
definitions to revised program requirements.
            Section 222. Agreements with States

                              PRESENT LAW

    Current section 239 establishes the relationship between 
the Department of Labor and the States related to the trade 
adjustment assistance for workers program.

                        EXPLANATION OF PROVISION

    New section 222 establishes the relationship between the 
Department of Labor and the States related to the trade 
adjustment assistance for workers program. Specifically, 
section 222 coordinates the trade adjustment assistance program 
with the Workforce Investment Act of 1998 (WIA); outlines the 
responsibilities and rights the States have related to 
notification, data collection, review, and other such actions 
under the program; ensures that the services provided by States 
are approved by the Secretary of Labor; and ensures that 
unemployment insurance benefits are not denied as a result of 
any right to trade adjustment assistance payments made under 
this chapter.

                           REASONS FOR CHANGE

    The Workforce Investment Act did not exist when TAA and 
NAFTA-TAA were designed. After WIA became law in 1998, only 
minor conforming changes were made to the trade adjustment 
assistance for workers program. This legislation represents the 
first attempt to achieve true coordination between the 
Workforce Investment Act and the trade adjustment assistance 
for workers program. In particular, the purpose of section 222 
is to assure that TAA-eligible workers are able to access TAA 
benefits through WIA one-stop partners in the same manner and 
to the same extent as any other worker eligible for those 
services. This provision does not, however, limit the benefits 
available to workers eligible for TAA to those benefits 
available under WIA, nor does it require provision of TAA or 
WIA services exclusively through WIA one-stop partners where 
such benefits or services are not available from WIA one-stop 
partners.
            Section 223. Administration Absent State Agreement

                              PRESENT LAW

    Current section 240 requires the Department of Labor to 
arrange for the performance of TAA program functions when no 
agreement exists with a State. It further provides for judicial 
review of final determinations concerning entitlement to 
benefits under the TAA for workers program.

                        EXPLANATION OF PROVISION

    New section 223 makes no substantive change.

                           REASONS FOR CHANGE

    New section 223 contains editorial and conforming changes.
            Section 224. Data collection; evaluations; reports

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    Section 224 requires the Department of Labor to establish 
an effective performance measuring system to evaluate trade 
adjustment assistance program utilization, program performance, 
participant outcomes, and State participation and to report 
annually to the Senate Finance Committee and the House Ways and 
Means Committee the information collected. Section 224 requires 
the States to submit necessary program data to the Department 
of Labor and requires the Department of Labor to make public 
certain performance data.

                           REASONS FOR CHANGE

    It is the view of the Committee that the Department of 
Labor currently does not have in place an adequate system for 
evaluating program utilization, performance, and outcomes for 
the TAA for workers and NAFTA-TAA programs. This is in part the 
result of a decision by Congress in 1981 to shift 
responsibility for data collection under the TAA programs to 
the States, as a consequence of which no uniform program 
statistics currently exist. This legislation reestablishes the 
Federal requirement to develop performance measures, based on 
data collected by the States. The Committee expects that the 
more comprehensive data collection mandated by this section 
will permit informed consideration by the Department of Labor, 
the States, and Congressional oversight committees of the 
effectiveness, resource needs, and priorities of the TAA for 
workers program. In establishing these reporting requirements, 
the Committee recognizes that a thorough analysis of certain of 
the required elements may not be possible in the initial report 
submitted to the Committee on Finance and the Committee on Ways 
and Means, but notes that all required elements should be fully 
addressed in annual reports thereafter.
            Section 225. Study by Secretary of Labor when International 
                    Trade Commission begins investigation

                              PRESENT LAW

    Current section 224 requires the International Trade 
Commission (ITC) to notify the Department of Labor when the ITC 
begins a section 202 (i.e., safeguard) investigation of a 
particular industry and requires the Secretary of Labor to 
report to the President concerning whether use of the trade 
adjustment assistance program would facilitate adjustment of 
workers in the affected industry.

                        EXPLANATION OF PROVISION

    New section 225 makes no substantive changes in existing 
law.

                           REASONS FOR CHANGE

    Section 225 contains technical and conforming changes.
            Section 231. Certification as adversely affected workers

                              PRESENT LAW

    Current sections 221 and 250 set forth requirements 
concerning who may file a petition for certification of 
eligibility to apply for TAA and NAFTA-TAA assistance, 
respectively. Under both programs, petitions may be filed by a 
group of workers or by their certified or recognized union or 
other duly authorized representative. TAA petitions are filed 
with the Secretary of Labor. NAFTA-TAA petitions are filed with 
the Governor of the relevant State and forwarded by him to the 
Secretary of Labor. Under section 223, the Secretary of Labor 
must rule on eligibility within 60 days after a TAA petition is 
filed. Under section 250, the Governor must make a preliminary 
eligibility determination within 10 days after a NAFTA-TAA 
petition is filed, and the Secretary of Labor must make a final 
eligibility determination within the next 30 days. Section 221 
also sets forth notice and hearing obligations of the Secretary 
of Labor upon receipt of a TAA petition. Section 250 provides 
that, in the event of preliminary certification of eligibility 
to apply for NAFTA-TAA benefits, the Governor immediately 
provide the affected workers with certain rapid response 
services.
    Current sections 222 and 250 set forth group eligibility 
criteria. Under TAA, the Secretary must certify a group of 
workers as eligible to apply for trade adjustment assistance if 
he determines (1) that a significant number or proportion of 
the workers in such workers' firm have become or are threatened 
to become totally or partially separated; (2) sales or 
production of such firm have decreased absolutely; and (3) 
imports of articles like or directly competitive with articles 
produced by such workers' firm contributed importantly to the 
total or partial separation or threat thereof, and to the 
decline in sales or production. Under NAFTA-TAA, group 
eligibility may be based on the same criteria set forth in 
section 222, but section 250 also provides for NAFTA-TAA 
eligibility where there has been a shift in production by the 
workers' firm to Mexico or Canada of articles like or directly 
competitive with articles which are produced by the firm. 
Section 222 also includes special eligibility provisions with 
respect to oil and natural gas producers.
    Current section 223 sets forth limitations on 
certifications. It provides that a TAA or NAFTA-TAA group 
certification shall not apply to any worker whose last total or 
partial separation from the firm before his application under 
section 231 occurred more than one yearbefore the date of the 
petition on which certification was granted. Section 223 also requires 
the Secretary of Labor to publish a summary of each eligibility 
determination in the Federal Register and provides that the Secretary 
shall terminate a certification of eligibility if he determines that 
separations from a firm are no longer attributable to the statutory 
eligibility criteria.

                        EXPLANATION OF PROVISION

    New section 231 combines the TAA and NAFTA-TAA programs, 
establishing a single program with a single set of group 
eligibility criteria and a single set of procedures and 
standards for filing and reviewing petitions, certifying 
eligibility, and terminating certifications of eligibility.
    Section 231 expands the list of entities that may file a 
petition for group certification of eligibility to include 
employers, one-stop operators or one-stop partners, State 
employment agencies, and 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. Section 231 
also provides that 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 direct the Secretary of 
Labor to initiate a certification process under this chapter to 
determine the eligibility for trade adjustment assistance of a 
group of workers.
    Section 231 creates a single process for filing and 
reviewing petitions for trade adjustment assistance for 
workers, under which all petitions are filed simultaneously 
with both the Secretary of Labor and the Governor of the State. 
Upon filing of the petition, the Governor is required to 
fulfill the requirements of any agreement entered into with the 
Department of Labor under section 222, to provide certain rapid 
response services, and to notify workers on whose behalf a 
petition has been filed of their potential eligibility for 
certain existing Federal health care, child care, 
transportation, and other assistance programs. Upon filing the 
petition, the Secretary of Labor must make his certification 
determination within 40 days and provide the notice required.
    Under section 231, the eligibility criteria are revised and 
expanded in several respects. First, the requirement that there 
be an absolute decrease in sales or production has been 
eliminated, such that workers are eligible for TAA if (1) a 
significant number or proportion of the workers in such 
workers' firm have become or are threatened to become totally 
or partially separated; (2) the value or volume of imports of 
articles like or directly competitive with articles produced by 
that firm have increased; and (3) the increase in the value or 
volume of imports contributed importantly to the workers' 
separation or threat of separation. Second, eligibility is 
extended to workers who are separated due to shifts in 
production to any country. Third, eligibility is extended to 
adversely affected secondary workers. Eligible secondary 
workers include workers employed by supplier firms, downstream 
producers, and firms that provide contract services who are 
separated or threatened with separation if their separation is 
due to a loss of business with a firm where workers have been 
certified as eligible to apply for trade adjustment assistance. 
Fourth, a new special eligibility provision is added with 
respect to taconite pellet producers. Fifth, the Secretary of 
Labor is directed, within 6 months, to establish a program to 
provide trade adjustment assistance to domestic operators of 
motor carriers who are adversely affected by competition from 
foreign owned and operated motor carriers. The Secretary of 
Labor is also directed to put in place a system to collect data 
on adversely affected service workers and to conduct and report 
to the Congress within two years the results of a study on 
means for extending the trade adjustment assistance program to 
additional adversely affected service workers.

                           REASONS FOR CHANGE

    Combining the TAA and NAFTA-TAA programs for workers into a 
single program with harmonized petition procedures and 
eligibility requirements will eliminate confusion and 
uncertainty among eligible workers who currently must apply 
under and choose between both programs. It will eliminate 
unnecessary discrimination between workers whereby workers from 
the same firm may receive different benefits. Unifying the 
programs will also reduce the administrative burden on the 
Department of Labor, the States, one-stops, and one-stop 
partners, with the effect of reducing administrative costs, 
improving program efficiency, and enhancing their ability to 
serve affected workers.
    Expanding the list of entities that may file a TAA petition 
provides potentially eligible workers with more options for 
completing the application process and expands their access to 
knowledgeable sources of assistance in understanding 
application requirements. Further, by providing that the 
President, the Committee on Finance, or the Committee on Ways 
and Means may direct the Secretary of Labor to determine the 
eligibility for TAA of a group of workers, the Committee 
intends to address the situation where import competition is 
having an effect on an entire industry. In such cases, rather 
than making plant-by-plant eligibility determinations as is the 
current practice, the Secretary of Labor would consider whether 
the eligibility criteria are met on an industry-wide basis. 
This will significantly reduce the burdens on both the 
Department of Labor and eligible workers where otherwise 
multiple applications would need to be considered seriatim.
    Expanding eligibility to include shifts in production to 
any country remedies the basic inequity in existing law, 
whereby a worker's eligibility depends on the country to which 
his production facility has relocated.
    The Department of Labor estimates each manufacturing job in 
the United States economy supports another 0.95 of a job in a 
supplier industry. Expansion of eligibility to secondary 
workers reflects recognition that for every worker separated 
due to import competition or plant relocation, an additional 
secondary worker is likely to be displaced for the same reason 
and should receive the same adjustment assistance. This 
corrects the current inequity whereby workers employed by a 
closed facility are eligible to receive trade adjustment 
assistance, while contract workers providing services within 
the same plant and workers who make input parts forthat plant 
at another facility are not eligible for benefits if they lose their 
jobs as a result of the same plant closing. The Committee notes, 
however, that the definitions of ``downstream producer'' and 
``supplier'' in section 221 are intended to exclude from the definition 
of secondary workers so-called ``tertiary workers'' who may become 
displaced in a community that loses a major employer. For example, if a 
local factory closes, and a worker at a nearby restaurant at which 
factory workers often eat lunch loses his job due to declining 
business, the restaurant worker would not be eligible for TAA as a 
secondary worker, because he does not supply parts to the factory, 
perform finishing operations on the product produced by the factory, or 
provide services under contract to the factory. Instead, these tertiary 
effects on local employment associated with mass layoffs are addressed 
in the trade adjustment assistance for communities provisions in Title 
III of the bill.
    Under current law, eligibility for trade adjustment 
assistance is restricted to workers who produce ``articles.'' 
Fortin v. Marshall, 608 F.2d 525 (1st Cir. 1979); Pemberton v. 
Marshall, 639 F.2d 798 (D.C. Cir. 1981). Pursuant to the NAFTA 
binational panel decision in In the Matter of Cross-Border 
Trucking Services, Secretariat File no. USA-MEX-98-2008-01 
(Feb. 6, 2001), the United States will be opening its borders 
to cross-border trucking services by Canadian- and Mexican-
owned and operated motor carriers. This development may result 
in a loss of jobs by domestic operators of motor carriers. The 
bill makes it possible for this category of service workers to 
receive trade adjustment assistance in the event that they 
experience job loss due to competition from imports of motor 
carrier services. The bill will also create a data collection 
process which will facilitate the Committee's future 
consideration of inclusion of additional categories of service 
workers in the trade adjustment assistance program. The 
Committee believes that the Secretary of Labor could satisfy 
the data collection requirements in this section through an 
extension of the current plant closing and dislocated worker 
surveys.
    The Committee notes that the overall purpose served by this 
section is to extend eligibility for trade adjustment 
assistance to a more accurate and comprehensive group of 
adversely affected workers. Accordingly, the Committee intends 
the eligibility criteria to be interpreted liberally. In 
particular, the Committee cautions the Secretary of Labor 
against denying eligibility in cases where a short-term decline 
in imports is clearly inconsistent with a longer-term rising 
trend.
            Section 232. Benefit information to workers

                              Present Law

    Current section 225 requires that States and the Department 
of Labor provide workers eligible to apply for trade adjustment 
assistance with specific information on trade adjustment 
assistance, as well as other Federal assistance, for which they 
may be eligible.

                        Explanation of Provision

    New section 232 makes editorial and conforming changes.
            Section 234. Comprehensive assistance

                              Present Law

    Section 250 contains a comprehensive list of the benefits 
for which workers covered by a NAFTA-TAA certification are 
eligible.

                        Explanation of Provision

    New section 234 sets out a comprehensive list of the 
benefits for which workers covered by a TAA certification are 
eligible. These benefits include trade adjustment allowances as 
described in sections 235 through 238; employment services as 
described in section 239; training as described in section 240; 
job search allowances as described in section 241; relocation 
allowances as described in section 242; supportive services and 
wage insurance as described in section 243; and health 
insurance coverage options as described in Title VI of the 
Trade Adjustment Assistance for Workers, Farmers, Fishermen, 
Communities, and Firms Act of 2002.

                           Reasons for Change

    Section 234 revises the comprehensive list of benefits 
available under the trade adjustment assistance for workers 
program to reflect additional benefits made available by this 
legislation.
            Section 235. Qualifying requirements for workers

                              Present Law

    Current section 231 establishes qualifying requirements 
that must be met in order for an individual worker within a 
certified group to receive trade adjustment assistance. In 
order to receive trade adjustment allowances, a certified 
worker must have been separated on or after the eligibility 
date established in the certification but within 2 years of the 
date of the certification determination; been employed for at 
least 26 of the 52 weeks preceding the separation at wages of 
$30 or more a week; be eligible for and have exhausted 
unemployment insurance benefits; not be disqualified for 
extended compensation payable under the Federal-State Extended 
Unemployment Compensation Act of 1970 by reason of the work 
acceptance and job search requirements in section 202(a)(3) of 
that Act; and be enrolled in a training program approved by the 
Secretary of Labor or have received a training waiver. Section 
231 also sets forth permissible bases for granting a training 
waiver. Pursuant to section 250(d), training waivers are not 
available in the NAFTA-TAA program.

                        Explanation of Provision

    New section 235 maintains the individual eligibility 
requirements in current law, with the exception of revisions to 
provisions governing bases for granting training waivers. 
Section 235 provides that all workers who are eligible to apply 
for trade adjustment assistance may be considered for training 
waivers.

                           Reasons for Change

    Section 235 creates a single set of eligibility 
requirements. It revises the training waiver provisions to 
provide needed flexibility so that program administrators can 
better serve eligible workers.
            Section 236. Weekly amounts

                              Present Law

    Current section 232 sets the amount of trade adjustment 
allowances received by certified workers at State unemployment 
insurance levels and provides for coordination with 
unemployment insurance benefits and other Federal training 
benefits.

                        Explanation of Provision

    New section 236 includes technical and conforming changes.
            Section 237. Limitations on trade adjustment assistance 
                    allowances

                              Present Law

    Current section 233 provides that each certified worker may 
receive trade adjustment allowances for a maximum of 52 weeks. 
Under current law, workers certified under the NAFTA-TAA 
program may not receive trade adjustment allowances unless 
enrolled in an approved training program either within 16 weeks 
of becoming eligible for unemployment insurance or within 6 
weeks after being certified eligible to apply for trade 
adjustment assistance, whichever is later. The current TAA 
program has no comparable requirement, permitting a worker to 
postpone enrolling in training and receiving trade adjustment 
allowances until months after his separation.
    Current law also provides that, in most circumstances, a 
worker is treated as participating in training during any week 
which is part of a break in training that does not exceed 14 
days.

                        Explanation of Provision

    New section 237 increases the maximum time period during 
which a worker may receive trade adjustment allowances to 78 
weeks and extends the permissible duration of a break in 
training to 30 days. Section 237 harmonizes training enrollment 
requirements in TAA and NAFTA-TAA by providing that, in order 
to receive trade adjustment allowances, all workers must enroll 
in an approved training program either within 16 weeks of 
becoming eligible for unemployment insurance or within 8 weeks 
after being certified eligible to apply for trade adjustment 
assistance, whichever is later. Section 237 clarifies that the 
prohibition on payment of trade adjustment allowances to a 
worker receiving on-the-job training does not apply to a worker 
enrolled in a non-paid customized training program or to a 
worker participating in the displaced worker self-employment 
training pilot program established pursuant to section 102 of 
this Act. Section 237 also clarifies that the requirement that 
a worker exhaust unemployment insurance benefits prior to 
receiving trade adjustment allowances does not apply to any 
extension of unemployment insurance by a State using its own 
funds that extends 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).

                           Reasons for Change

    The Committee believes that the effectiveness of the trade 
adjustment assistance program in retraining workers is hampered 
by the current mismatch between the duration of training (up to 
104 weeks) and the duration of income support (up to 78 weeks, 
including 26 weeks of unemployment insurance). According to the 
GAO, ``[p]rogram administrators, training providers, and 
workers in training consistently said that the TAA and NAFTA-
TAA programs needed to close the gap between extended income 
support payments, which are provided for up to 18 months, and 
training, which is provided for up to 24 months. * * * [T]he 
gap in income support is believed to create difficulties for 
workers in 2-year training programs because when income support 
payments stop, dislocated workers generally drop out of 
training because they cannot afford to remain in classes 
without financial assistance.'' GAO, Trade Adjustment 
Assistance: Experiences of Six Trade-Impacted Communities, GAO-
01-838 (Aug. 2001) at 15. GAO found that this gap limits some 
workers to training programs lasting 18 months or less, 
precluding them from pursuing a 2-year associate of arts degree 
program, which could result in higher earnings or better 
skills. The difficulty created by the income-training gap is 
particularly evident in the case of workers who require initial 
remedial courses (GED or English as a second language) before 
they can enter vocational training, because they may not have 
time to complete the latter within 18 months. Id. At the July 
20 hearing of the Subcommittee on International Trade, Mr. 
Loren Yager of the GAO testified that, according to the most 
recent national data, approximately 80 percent of workers 
receiving TAA or NAFTA-TAA benefits had a high school education 
or less, compared to 42 percent in the overall labor force. 
July 20 Hearing Tr. at 6-7. According to William Reinsch, 
President, National Foreign Trade Council, testifying at the 
Committee's July 19 hearing, ``[a]n individual who takes the 
time during his benefit period to study English and/or get a 
GED often does not have time left in his benefit cycle to then 
enter into job training. So he has done the right thing, but he 
has run out of benefits and then does not have a lot of choices 
available to him.'' July 19 Hearing Tr. at 44.
    Section 237 also addresses two other timing issues which 
can sometimes deprive otherwise qualified workers from 
receiving trade adjustment allowances. The current NAFTA-TAA 
requirement that training enrollment occur within 6 weeks after 
certification is expanded to 8 weeks for all workers, 
permitting States more time for outreach and more flexibility 
to find appropriate training programs that start within the 
permitted period. In addition, many community colleges and 
other approved training providers have semester breaks that 
exceed 14 days in length. In order to permit workers to 
continue receiving trade adjustment allowances during a 
semester break, the permissible break in training is increased 
to 30 days.
    Finally, by exempting State-financed extensions of 
unemployment insurance from the requirement that a worker 
exhaust unemployment insurance before qualifying for trade 
adjustment allowances, the bill eliminates what would otherwise 
be a disincentive for States to provide displaced workers with 
extended unemployment benefits paid out of State funds and 
avoids shifting the burden of income support payments under the 
TAA program to the States.
            Section 238. Application of State laws

                              PRESENT LAW

    Current section 234 provides that State law shall determine 
a worker's eligibility for unemployment insurance benefits.

                        EXPLANATION OF PROVISION

    New section 238 makes no substantive changes.
            Section 239. Employment services

                              PRESENT LAW

    Current section 235 requires the Secretary of Labor to make 
every reasonable effort to secure for certified workers 
counseling, testing, and placement services, and supportive and 
other services, provided for under any other Federal law and 
permits the Secretary, whenever appropriate, to secure such 
services through agreements with the States.

                        EXPLANATION OF PROVISION

    New section 239 makes no substantive changes.
            Section 240. Training

                              PRESENT LAW

    Current section 236 establishes the terms and conditions 
under which training is available to eligible workers; permits 
the Secretary of Labor to approve certain specified types of 
training programs and to pay the costs of approved training and 
certain supplemental costs, including subsistence and 
transportation costs, for eligible workers; and caps total 
annual funding for training under the TAA for workers program 
at $80 million. Section 250 separately caps training 
expenditures under the NAFTA-TAA program at $30 million 
annually.

                        EXPLANATION OF PROVISION

    New section 240 revises the list of training programs which 
the Secretary of Labor may approve to include customized 
training. Section 240 revises the requirement in existing law 
that an adversely affected worker may not be approved for or 
continue to receive training benefits after he secures 
reemployment. The section provides that the Secretary may 
approve and pay the costs of training (or shall continue to pay 
the costs of training previously approved) for an adversely 
affected worker who secures reemployment for the completion of 
the training program or up to 26 weeks, whichever is less, 
after the date the adversely affected worker becomes 
reemployed. Section 240 sets the total funds available for 
training expenditures under the unified TAA for workers program 
to $300 million annually.

                           REASONS FOR CHANGE

    The Committee believes that the purposes of the trade 
adjustment assistance program are better served when adversely 
affected workers are permitted to complete previously approved 
training, or undertake up to 26 weeks of approved training, 
despite securing reemployment. As reported by the GAO in August 
2001, ``state and local officials reported that insufficient 
federal funds are available for [TAA training] programs toward 
the end of the fiscal year (Department of Labor officials said 
these problems primarily occur in the first and last quarters 
of the fiscal year).'' Moreover, ``although Labor has issued 
formal guidance that states should not stop enrolling workers 
in program services and benefits when funding is temporarily 
unavailable, agency officials report that few states have done 
so.'' GAO, Trade Adjustment Assistance: Experiences of Six 
Trade-Impacted Communities, GAO-01-838 (Aug. 2001) at 16.
    The Committee estimates that, based on the changes included 
in this legislation, funding in the amount of $300 million 
annually will be necessary to alleviate existing shortfalls in 
training funds and to provide adequate training for all 
eligible workers.
            Section 241. Job search allowances

                              PRESENT LAW

    Under current section 237, when the Secretary of Labor 
determines that local employment is not available, an adversely 
affected worker certified eligible for TAA benefits may receive 
reimbursement of 90 percent of the cost of necessary job search 
expenses up to $800.

                        EXPLANATION OF PROVISION

    New section 241 raises the maximum reimbursement for job 
search expenses to $1,200 per worker.

                         REASONS FOR THE CHANGE

    Congress has periodically updated the maximum allowance for 
job search expenses to reflect inflation. The maximum allowance 
for job search expenses was last raised from $600 to $800 in 
the Deficit Reduction Act of 1984 (P.L. 98-369).
            Section 242. Relocation allowances

                              PRESENT LAW

    Under current section 238, when the Secretary of Labor 
determines that local employment is not available, an adversely 
affected worker certified eligible for TAA benefits may receive 
a relocation allowance consisting of (1) 90 percent of the 
reasonable and necessary expenses incurred in transporting a 
worker and his family, if any, and household effects, and (2) a 
lump sum equivalent to three times the worker's average weekly 
wage, up to a maximum payment of $800.

                        EXPLANATION OF PROVISION

    New section 242 raises the maximum lump sum portion of the 
relocation allowance to $1,500.

                         REASONS FOR THE CHANGE

    Congress has periodically updated the maximum amount of the 
lump sum portion of the relocation allowance to reflect 
inflation. The maximum amount of the lump sum portion of the 
relocation allowance was last raised from $600 to $800 in the 
Deficit Reduction Act of 1984 (P.L. 98-369). In 2000, the 
average weekly wage for all private nonagriculture workers was 
$474.38. Three times the average is $1,423.14.
            Section 243. Supportive services; wage insurance

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    Although certain supportive services are available to 
dislocated workers under WIA, current law makes no express 
linkage between these services and trade adjustment assistance 
and TAA certified workers may not be able to access them. New 
section 243 provides that States may apply for and the 
Secretary of Labor may make available to adversely affected 
workers certified under the trade adjustment assistance program 
supportive services available under WIA, including 
transportation, child care, and dependent care, that are 
necessary to enable a worker to participate in or complete 
training. Section 243 requires the Comptroller General to 
conduct a study of all assistance provided by the Federal 
Government for workers facing job loss and economic distress; 
to 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 study within one year of enactment of 
this Act; and to distribute the report to all WIA one-stop 
partners. Section 243 further provides that each State may 
conduct a study of its assistance programs for workers facing 
job loss and economic distress. Each State is eligible for a 
grant from the Secretary of Labor, not to exceed $50,000, to 
enable it to conduct the study. In the event that a grant is 
awarded, the State must, within one year of receiving the 
grant, provide its report to the Committee on Finance and the 
Committee on Ways and Means and distribute its report to one-
stop partners in the State.
    Section 243 also directs the Secretary of Labor, within one 
year of enactment, to establish a wage insurance program under 
which a State uses the funds provided to the State for trade 
adjustment allowances to pay to an adversely affected worker 
certified under section 231, for a period not to exceed two 
years, 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. An adversely 
affected worker may be eligible to receive a wage subsidy if 
the worker obtains reemployment not more than 26 weeks after 
the date of separation from the adversely affected employment, 
is at least 50 years of age, earns not more than $50,000 a year 
in wages from reemployment, is employed at least 30 hours a 
week in the reemployment, and does not return to the employment 
from which the worker was separated. The wage subsidy available 
to workers in the wage insurance program is 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, if the wages the 
worker receives from reemployment are less than $40,000 a year. 
The wage subsidy is 25 percent if the wages received by the 
worker from reemployment are greater than $40,000 a year but 
not more than $50,000 a year. Total payments made to an 
adversely affected worker under the wage insurance program may 
not exceed $10,000 over the 2-year period. A worker 
participating in the wage insurance program is not to be 
eligible to receive any other trade adjustment assistance 
benefits, unless the Secretary of Labor determines that the 
worker has shown circumstances that warrant eligibility for 
training benefits under section 240.

                           REASONS FOR CHANGE

    The inclusion of wage insurance--together with self-
employment training and community trade adjustment--in the 
trade adjustment assistance program, is part of an effort to 
focus the program on re-employment, rather than training alone. 
In particular, the Committee believes that wage insurance can 
be a more efficient and less costly solution to the problem of 
assisting older displaced workers to rejoin the workforce. At 
the July 20, 2001 hearing of the Subcommittee on International 
Trade concerning reauthorization of the trade adjustment 
assistance programs, Lori Kletzer, a noted labor economist from 
the University of California Santa Cruz and the Institute for 
International Economics, testified that data on displaced 
manufacturing workers show that older workers and workers with 
longer service on the old job are significantly less likely to 
be reemployed--or to be reemployed at a comparable wage--than 
younger and less-tenured workers. Moreover, the difficulties do 
not end with the transition to the next job. For reemployed 
import-competing displaced workers, the average earnings loss 
is 13 percent. Two-thirds earn less on their new job than they 
did on their old job. A quarter have earnings losses in excess 
of 30 percent. July 20 Hearing Tr. at 19-20. Responding to 
these statistics, the bipartisan U.S. Trade Deficit Review 
Commission recently recommended that ``Congress consider * * * 
ways of filling in the earnings gap created when new jobs 
initially pay less than previous jobs.'' U.S. Trade Deficit 
Review Commission at 168. In particular, the U.S. Trade Deficit 
Review Commission recommended that Congress consider a program 
of wage insurance as an option for assisting displaced workers. 
According to the Commission, wage insurance ``has the advantage 
of encouraging displaced workers to accept new jobs as quickly 
as possible and removes some of the reluctance to accepting new 
jobs that initially pay workers lower wages than their former 
jobs.'' Id. at 168. Moreover, ``for older workers, wage 
insurance may enable them to reach retirement while maintaining 
their standard of living and retirement savings.'' Id. at 168. 
Finally, wage insurance creates an opportunity for workers to 
receive on-the-job training, which studies show can often be a 
more efficient form of retraining. Id. at 167.
            Section 244. Payments to States

                              PRESENT LAW

    Current section 241 provides that the Secretary of Labor 
shall from time to time certify to the Secretary of the 
Treasury for payment to each cooperating State the sums 
necessary to enable that State as an agent of the United States 
to make payments necessary to carry out the trade adjustment 
assistance program and sets forth the terms and conditions 
under which payments to the States are made.

                        EXPLANATION OF PROVISION

    New section 244 makes technical and conforming changes.
            Section 245. Liabilities of certifying and disbursing 
                    officers

                              PRESENT LAW

    Current section 242 limits the liability of Department of 
Labor certifying and disbursing officers with respect to 
payments under this chapter.

                        EXPLANATION OF PROVISION

    New section 245 makes technical and conforming changes.
            Section 246. Fraud and recovery of overpayments

                              PRESENT LAW

    Current section 243 establishes rules governing fraud and 
establishes procedures for recovery of overpayments.

                        EXPLANATION OF PROVISION

    New section 246 makes technical and conforming changes.
            Section 247. Criminal penalties

                              PRESENT LAW

    Current section 244 establishes criminal penalties for 
fraud.

                        EXPLANATION OF PROVISION

    New section 246 makes technical and conforming changes.
            Section 248. Authorization of appropriations

                              PRESENT LAW

    Current section 245 authorizes to be appropriated to the 
Department of Labor such sums as may be necessary to carry out 
the purposes of the TAA and NAFTA-TAA for workers programs for 
the period October 1, 1998 through September 30, 2001.

                        EXPLANATION OF PROVISION

    New section 248 authorizes to be appropriated to the 
Department of Labor such sums as may be necessary to carry out 
the purposes of the consolidated trade adjustment assistance 
for workers program for the period October 1, 2001, through 
September 30, 2006. It does not change the status of TAA for 
workers as an entitlement program.
            Section 249. Regulations

                              present law

    Current section 248 directs the Secretary of Labor to 
prescribe such regulations as may be necessary to carry out the 
TAA for workers and NAFTA-TAA programs.

                        explanation of provision

    New section 249 makes no changes.
            Section 250. Subpoena power

                              present law

    Current section 249 provides the Secretary of Labor with 
authority to subpoena the attendance of witnesses and the 
production of evidence necessary for him to make a 
determination under the TAA and NAFTA-TAA programs and to 
enforce subpoenas through the United States district courts.

                        explanation of provision

    New section 250 makes technical and conforming changes.

Section 102. Small Business Administration Pilot Program

                              present law

    No provision.

                        explanation of provision

    Section 102 amends the Trade Act of 1974 so that workers 
receiving trade adjustment assistance are eligible to pursue 
additional training through the Small Business Administration 
and to start their own businesses during the period in which 
they are receiving trade adjustment assistance benefits, 
without losing eligibility for trade adjustment allowances, 
training, and other benefits under the trade adjustment 
assistance program. The pilot program would allow eligible 
workers to access self-employment training, business plan 
counseling, and existing Small Business Administration programs 
for accessing capital without losing TAA benefits.

                           reasons for change

    Currently, the trade adjustment assistance program focuses 
on training displaced workers so that they can find new full-
time employment. One of the criticisms of the existing program 
is that it is not flexible enough to achieve its purpose of re-
employing displaced workers in sustainable jobs that pay high 
wages. In particular, the current program does little to assist 
workers who may wish to start their own businesses, even though 
self-employment may offer the best long-term prospects for 
income and job security. Under current law, a worker who starts 
up a business may be considered re-employed and therefore lose 
access to trade adjustment assistance benefits.
    At the July 20, 2001, hearing of the Subcommittee on 
International Trade of the Committee on Finance, the 
subcommittee heard testimony from Mr. Robert Hamp, a small 
businessman and former steel worker from Pennsylvania who 
recently completed training under the trade adjustment 
assistance program. Through TAA, Mr. Hamp was able to obtain 
training in indoor air quality maintenance, but only one course 
in small business management and almost no assistance in 
preparing his business plan. As Mr. Hamp explained, ``Looking 
at going into business for myself, it would have been nice to 
have something that would have allowed me to start that 
business during the training. I believe, had I done that, then 
I would have been considered to have full-time employment and 
my benefits would have been cut off.'' July 20 Hearing Tr. at 
28. TAA income benefits end the last day of training classes, 
``so you are effectively unemployed again as soon as you have 
finished your classes. So now you have to scramble to get the 
business up and going, where you could not have started it 
prior to that date.'' Id. at 29.
    The Committee recognizes that not all individuals who would 
like to start a business are prepared to do so and therefore 
concludes it is important for individuals to access training 
for starting and managing a business in order to assess whether 
they would be better served by self-employment than by seeking 
a job with a new employer. Because the Small Business 
Administration has existing programs that provide counseling 
and access to affordable capital for start-up businesses, this 
section directs the Administrator of the Small Business 
Administration to establish a 3-year pilot program that 
provides self-employment training to workers in the trade 
adjustment assistance program who are interested in starting 
their own businesses. Although the section directs the Small 
Business Administration to establish a pilot program, the 
Committee does not intend for the Small Business Administration 
to create a separate program. Instead, the Committee intends 
for the Small Business Administration to incorporate the pilot 
into its existing portfolio of programs that teach and counsel 
entrepreneurs about starting and managing a small business and 
seeking financing.
    In order to track the development and implementation of 
this pilot into the Small Business Administration's programs, 
the agency is required to report to the authorizing Committees 
on a quarterly basis. It also requires the Small Business 
Administration to issue guidelines for implementing the program 
not later than 180 days after this legislation has been 
enacted.

            TITLE II.--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS


   Section 201. Reauthorization of Trade Adjustment for Firms Program


                              present law

    The Trade Adjustment Assistance for Firms program provides 
technical assistance to qualifying firms. Current Title II, 
Chapter 3, section 251 of the Trade Act of 1974 provides that a 
firm is eligible to receive trade adjustment assistance under 
this program if (1) a significant number or proportion of its 
workers have become or are threatened to become totally or 
partially separated; (2) sales or production, or both, have 
decreased absolutely; and (3) increases of imports of articles 
like or directly competitive with articles which are produced 
by such firm contributed importantly to the total or partial 
separations or threat thereof.
    The authorization for the Trade Adjustment Assistance for 
Firms program expired on September 30, 2001. The TAA for Firms 
program is currently subject to annual appropriations and is 
funded as part of the budget of the Economic Development 
Administration in the Department of Commerce.

                        explanation of provision

    Section 201 reauthorizes the Trade Adjustment Assistance 
for Firms program for fiscal years 2002 through 2006; expands 
the definition of qualifying firms to cover shifts in 
production; and authorizes appropriations to the Department of 
Commerce in the amount of $16 million annually for fiscal years 
2002 through 2006 to carry out the purposes of the Trade 
Adjustment Assistance for Firms program.

                           reasons for change

    In recent years, there has been an increase in the number 
of approved technical assistance projects for which no funds 
are available. Accordingly, the Committee believes that recent 
funding levels for the Trade Adjustment Assistance for Firms 
program have been inadequate and should be increased to no less 
than $16 million annually.

        TITLE III.--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES


Section 301. Purpose

                              present law

    No provision.

                        explanation of provision

    Section 301 states that the purpose of this title is to 
assist trade-impacted 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 
developmentstrategies, and the provision of economic transition 
assistance.

                           reasons for change

    The economic dislocation which can result from import 
competition and shifts in production is not limited to the 
workers who lose their jobs or the firms that close their 
doors. Whole communities suffer both short-term and long-term 
economic effects. In a recent study of six trade-impacted 
communities, the GAO found that, in the short-term, communities 
that experienced major trade-related plant closures and layoffs 
in the mid- to late-1990s saw their unemployment rates rise 
dramatically. ``Where the layoffs were particularly severe, the 
communities were not prepared to deal with the workers' 
immediate needs, and local social service agencies were 
overwhelmed with requests for assistance.'' U.S. General 
Accounting Office, Trade Adjustment Assistance: Experiences of 
Six Trade-Impacted Communities, GAO-01-838 (Aug. 2001) at 10-
11. Longer-term economic impact on the communities included 
``lost wage income, business tax revenues, and sales by firms 
that supplied or subcontracted to the closed plants. In 
addition, while many dislocated workers found new jobs, they 
often received lower wages. This caused concern in some 
communities that plant closures might lead to a decreased 
standard of living for a large portion of the community, as 
well as concerns about additional job losses if more plants in 
these industry sectors closed or relocated abroad.'' Id. at 2-
3.
    GAO found that the ability of trade-impacted communities to 
respond to the short-term and long-term effects of mass layoffs 
is hampered by a lack of information about and insufficient 
expertise and resources to access existing Federal programs. In 
addition to trade adjustment assistance for workers and firms, 
Federal programs that may benefit trade-impacted communities 
exist in a number of Federal agencies, including the Department 
of Commerce's Economic Development Administration, the 
Department of Housing and Urban Development, the Department of 
Agriculture, and the Treasury Department's Community Adjustment 
and Investment Program, among others. Many States also have 
relevant programs. ``Some officials said that, without a 
central source of information on available economic adjustment 
programs, they are not always aware of those for which their 
communities might qualify.'' Id. at 31. In addition, officials 
``cited the lack of financial resources to meet the federal 
grant matching requirements,'' ``described the grant 
application process as time-consuming, technical, and 
expensive,'' and ``lacked the personnel and expertise necessary 
to secure federal grants.'' Id.
    Similar concerns were raised by Mr. Robert Rhodes, Director 
of Customized Training for Eastern New Mexico University, in 
his testimony before the Subcommittee on International Trade of 
the Committee on Finance on July 20, 2001. Describing the 
effects on the community of a large trade-related layoff in 
Roswell, New Mexico, Mr. Rhodes testified as follows:

          The service and information provided at local, state, 
        and federal levels lacked coordination, and many times 
        conflicted. There was a delay in making available 
        appropriate resources to address all the problems 
        arising from the layoff. * * * In their efforts to 
        help, many agencies provided duplicate or ineffective 
        services.

July 20 Hearing Tr. at 49. Mr. Rhodes also noted that:

          The failure to approach the social, economic, and 
        community development and the training in a holistic 
        manner created diverse and disengaged results. We had a 
        lot of activities going on, but many times they were 
        not related or interfaced with the other problems, the 
        other actions.

July 20 Hearing Tr. at 48-49.
    In some cases, displaced worker retraining programs prove 
to be of limited value, because communities do not have, and do 
not have the resources to attract, the kinds of employment for 
which workers are being trained. As Cindy Arnold, Executive 
Director of El Puente Community Development Corporation in El 
Paso, Texas, testified to the Subcommittee on International 
Trade, ``[t]here is an assumption that there will be training 
programs there that connect people to jobs.'' July 20 Hearing 
Tr. at 43. In reality, however, some workers are sent to 
training programs that may not significantly improve their 
reemployment prospects, because the community has no 
appropriate jobs to offer. Id. at 43-44, 57-58.
    Most importantly, the total amount of resources devoted by 
the Federal Government to community economic adjustment is 
extremely modest, and the vast majority of what is offered is 
not targeted specifically at the needs of trade-impacted 
communities. According to the GAO, the six severely trade-
impacted communities covered by its study received a total of 
$59.5 million in Federal economic adjustment funding between 
fiscal year 1995 and 2001, the vast majority of which went to 
El Paso, Texas. Id. at 27. ``Even when these communities 
received funds, the funds were narrowly targeted and not 
necessarily designed to address long-term human capital and 
infrastructure challenges.'' Id. at 4. For example, Mr. Rhodes 
noted that the Levi Strauss plant closing in Roswell resulted 
in a 70 percent increase in enrollment in the University's 
adult literacy program and doubled its customized training 
enrollment. With no funding available for additional faculty, 
facilities, and equipment, this put an enormous burden on the 
local educational system--a problem existing economic 
adjustment programs are not designed to address. Tr. at 47. 
Overall, ``[l]ocal officials believe that the scope of programs 
targeted at trade-impacted areas is too limited to make a 
difference in their communities.'' GAO-01-838 at 31.
    By contrast, the Department of Defense has a strong track 
record of successfully providing economic adjustment assistance 
to communities affected by military base closures. The Federal 
Government's policy with respect to base closures starts from 
the premise that the Government's decision to close a base has 
economic consequences for the surrounding community and that it 
is the Government's responsibility to help that community make 
a successful economic adjustment. Indeed, the Defense 
Department's Office of Economic Adjustment operates on the 
principle that ``the primary responses to a closure must be 
community-based.'' Department of Defense, Office of Economic 
Adjustment, Community Guide to Base Reuse (July 1995). Through 
the Office of Economic Adjustment, each affected community is 
assigned a Project Manager, who serves as a single point of 
contact for all Federal assistance. Through the Office of 
Economic Adjustment, affected communities can access assistance 
for displaced workers, impacted housing markets, and affected 
school districts, as well as technical assistance for 
converting former base facilities and property to other public 
or private uses. The Project Manager serves as a facilitator, 
helping stakeholders in the community to work cooperatively to 
develop a single strategic plan for community economic 
adjustment, to access available Federal and local resources, 
and to carry out the plan. This program has been a documented 
success in communities facing military base closures.
    As in the case of base closures, it is an affirmative 
Government policy decision--in this case, a decision to 
liberalize trade--which creates the need for economic 
adjustment in communities that experience mass layoffs due to 
import competition or shifts in production. The purpose of this 
Title is to create a trade adjustment assistance program for 
communities that is modeled on the successful operation of the 
Defense Department's Office of Economic Adjustment--a program 
that will coordinate Federal services, assure rapid response to 
community needs, and assist communities in developing and 
implementing strategic plans to achieve economic adjustment and 
diversification.

Section 302. Trade adjustment assistance for communities

    Section 302 amends Chapter 4 of title II of the Trade Act 
of 1974 to insert the following new sections:
            Section 271. Definitions

                              present law

    No provision.

                        explanation of provision

    New section 271 provides definitions related to trade 
adjustment assistance for communities.
            Section 272. Office of Community Trade Adjustment

                              present law

    No provision.

                        explanation of provision

    New section 272 establishes the Office of Community Trade 
Adjustment in the Economic Development Administration of the 
Department of Commerce to lead and coordinate a comprehensive 
program to address economic dislocation in eligible 
communities, create a one-stop clearinghouse for States and 
communities to access information on economic development, 
coordinate a Federal rapid response to mass layoffs in affected 
communities, provide technical assistance to eligible 
communities in preparation of a strategic plan, administer the 
grant program established under this Act, and establish an 
inter-agency trade adjustment assistance working group to 
examine other options for addressing trade impacts on 
communities.

                           REASONS FOR CHANGE

    The experience of the Department of Defense's Office of 
Economic Adjustment demonstrates that creating a single office 
to coordinate Federal services, provide rapid response services 
to affected communities, and serve as a central point of 
contact throughout the adjustment process results in a more 
effective adjustment process.
    The Office of Community Trade Adjustment is intended to 
address two criticisms of existing community economic 
adjustment programs: the difficulties faced by trade-impacted 
communities in identifying and accessing available Federal 
resources, and the tendency of existing programs to provide 
assistance on a piecemeal basis, rather than first developing a 
single strategic vision aimed at addressing the long-term 
economic development needs of each affected community. The 
primary responsibilities of the Office of Community Trade 
Adjustment will be two-fold. First, it is charged with 
improving interagency coordination and enhancing the provision 
of rapid response services to trade-impacted communities. 
Specifically, the Office will be responsible for setting up a 
system for identifying eligible communities, as defined in 
section 273, notifying those communities of the range of 
Federal assistance for which they might be eligible, and 
assisting those communities in accessing those programs in a 
timely and efficient manner. Second, the Office is responsible 
for assisting each eligible community to create a broad, 
coherent, and consensus-based strategy for responding to 
economic dislocations caused by import competition or 
production relocations and to implement that strategy.
            Section 273. Notification and certification as an eligible 
                    community

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 273 establishes eligibility requirements for 
communities to receive trade adjustment assistance. The 
Secretary of Labor is required to notify the Governor of a 
State and the Director of the Office of Community Trade 
Adjustment within 15 days after making a determination that a 
group of workers is eligible for trade adjustment assistance. 
The Director must then determine, within 30 days, whether a 
community is eligible for assistance under this chapter. To be 
eligible for the Trade Adjustment Assistance for Communities 
program, a community must have a minimum number of workers 
certified eligible to apply for trade adjustment assistance 
within a 36-month period (500 in an urban community and 300 in 
a rural community) or an unemployment rate 1 percent greater 
than the national unemployment rate for the most recent 12-
month period for which data are available.

                           REASONS FOR CHANGE

    The eligibility criteria in this section are taken from the 
Community Adjustment and Investment Program (CAIP), which is 
administered by the Department of the Treasury. CAIP was 
established as a result of the North American Free Trade 
Agreement Implementation Act of 1993 to assist border 
communities adversely affected by trade with Mexico or Canada. 
However, the TAA for communities program eliminates the 
artificial discrimination created by CAIP, which provides 
benefits for NAFTA-related impacts rather than all trade-
related economic distress.
    Under current law, workers, firms, and communities which 
experience mass layoffs due to import competition or plant 
relocation must seek, identify, and apply for individual 
Federal programs which may provide relevant benefits. There is 
no mechanism under current law for distinguishing communities 
that face economic dislocations due to trade from communities 
that may face economic dislocation for other reasons. The 
notification provision in section 273 ensures that communities 
which experience mass layoffs due to import competition or 
plant relocations can be readily identified and provided with 
rapid response services to assist the community in accessing 
all relevant Federal programs, with the goal of making timely 
information more widely and uniformly available. Under this 
section, the Office of Community Trade Adjustment will 
automatically identify and notify eligible trade-impacted 
communities, which will then have immediate access to a 
clearinghouse of information on available trade adjustment and 
economic development assistance programs.
            Section 274. Community Economic Development Coordinating 
                    Committee

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 274 provides that, in order for an eligible 
community to receive benefits under this chapter, it must 
create a Community Economic Development Coordinating Committee, 
and the Director of the Office of Community Trade Adjustment 
must certify that each such committee includes representatives 
of those groups significantly affected by the economic 
dislocation in that community. The Community Economic 
Development Coordinating Committee is charged with ascertaining 
the severity of the economic dislocation in the community; 
assessing the capacity of the community to respond to the 
required economic adjustment and the needs of the community as 
it undertakes economic adjustment; facilitating a dialogue 
between concerned interests in the community; overseeing the 
development of a strategic plan for community economic 
development; creating an executive council of members to 
promote the strategic plan within the community and ensure 
coordination and cooperation among all stakeholders; and 
applying for any grant, loan, or loan guarantee available under 
Federal law to develop or implement the strategic plan and 
being an eligible recipient for funding for economic adjustment 
for that community.

                           REASONS FOR CHANGE

    As noted by the GAO, one of the criticisms of the current 
approach to community trade adjustment is that a wide variety 
of Federal (as well as State and local) programs provide trade 
adjustment and economic development benefits in a piecemeal 
fashion. The combination of a lack of interagency coordination 
at the Federal level and lack of local coordination within the 
community results in a piecemeal delivery of benefits. The 
requirement that an eligible community form a Community 
Economic Development Coordinating Committee is intended to 
require local coordination of economic development efforts and 
to encourage the community to engage in a strategic planning 
process rather than simply applying for Federal support for 
individual projects. The Committee believes that setting in 
motion a process to involve all local stakeholders in a 
strategic planning process will result in a more efficient and 
synergistic use of new and existing trade and economic 
development program resources.
            Section 275. Community economic adjustment advisors

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 275 provides that the Director of the Office of 
Community Trade Adjustment shall assign a community economic 
adjustment advisor to each eligible community. The community 
economic adjustment advisor is responsible for providing 
technical assistance to the eligible community, including 
assisting in the development and implementation of a strategic 
plan and applying for any grant available under this or any 
other Federal law to develop or implement that plan; 
coordinating the response of all Federal agencies offering 
assistance to the eligible community; serving as an ex officio 
member of the Community Economic Development Coordinating 
Committee; acting as liaison between the committee and all 
other Federal agencies that offer assistance to eligible 
communities; reporting regularly to the Director of the Office 
of Community Trade Adjustment regarding the progress of 
development activities in the community; and performing other 
duties directed by the Secretary of Commerce or the Directorof 
the Office of Community Trade Adjustment.

                           REASONS FOR CHANGE

    The community economic adjustment advisor is modeled on the 
project manager created in the Office of Economic Adjustment in 
the Department of Defense. The community economic adjustment 
advisor is responsible for assuring interagency cooperation in 
the provision of trade adjustment and economic adjustment 
services to eligible communities, and acts as a technical 
resource, bringing perspective, experience, and expertise to a 
community as the community plots a course for economic 
recovery. Access to the community economic advisor will allow 
the community to ascertain what has worked elsewhere, what has 
not worked elsewhere, and whether there are best practices that 
can be transferred to the efforts being undertaken by the 
community. The advisor serves as the contact point through 
which the eligible community can receive information about and 
make application for Federal benefits and provides technical 
advice to the community on organizing a Community Economic 
Development Coordinating Committee, preparing a strategic plan, 
and implementing the strategic plan.
            Section 276. Strategic plans

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 276 provides that an eligible community may, in 
cooperation with the community economic adjustment advisor, 
develop a strategic plan for community economic adjustment and 
diversification. The strategic plan must contain certain 
elements, including a description and justification of the 
capacity for economic adjustment; a description of, and a plan 
to accomplish, the projects to be undertaken by the eligible 
community; 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; a description of any 
alternative development plans that were considered and why 
those plans were rejected; a description of any additional 
steps the eligible community will take to achieve economic 
adjustment and diversification; a description and justification 
for the cost and timing of proposed basic and advanced 
infrastructure improvements in the eligible community; a 
description of the occupational and workforce conditions in the 
eligible community; a description of how the plan will adapt to 
changing markets, business cycles, and other variables; and a 
graduation strategy through which the eligible community will 
terminate the need for Federal assistance. Upon receipt of an 
application from a Community Development Coordinating Committee 
on behalf of an eligible community, the Director of the Office 
of Community Trade Adjustment shall, after review and approval 
of the application, award a grant of up to $50,000 to that 
community to be used to develop the strategic plan. No 
community may receive more than one such grant in a 5-year 
period. The strategic plan must then be submitted to the 
Director for evaluation and approval.

                           REASONS FOR CHANGE

    As reported by the GAO, trade-impacted communities do not 
always recognize the need for or know how to undertake long-
term strategic planning while they are scrambling to assemble 
resources to meet the immediate needs of those affected by mass 
layoffs or large plant closures. GAO-01-838 at 32. ``These 
communities face long-term challenges in improving job skills 
and human capital of dislocated workers and developing physical 
infrastructure needed to attract new businesses.'' Id. at 32. 
They must decide ``whether to rebuild their prior economic base 
or retool it to compete in a changing national and global 
economy.'' Id. at 4. The experience of the Department of 
Defense with assisting communities facing military base 
closures demonstrates that an approach which creates incentives 
for local stakeholders to work cooperatively and supports that 
effort with technical assistance can help communities to focus 
more quickly and more effectively on how best to utilize 
available economic development resources to rebuild and 
diversify the local economy. The creation of a strategic plan 
forces the community to assess critically its strengths and 
weaknesses as it determines how best to respond to the economic 
crisis. It will also provide greater assurance that a grant 
application will have competitive merit and will ultimately 
result in the outcome intended by the community.
            Section 277. Grants for economic development

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 277 provides that the Director of the Office of 
Community Trade Adjustment, 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 by the Director that will be located 
in, or will create or preserve high-wage jobs in, that eligible 
community and implement the strategy of that eligible community 
to create high-wage jobs in sectors that are expected to 
expand.

                           REASONS FOR CHANGE

    Only one existing Federal program makes available grants, 
loans, and loan guarantees that are uniquely directed to the 
needs of trade-impacted communities. That program, the 
Community Adjustment and Investment Program (CAIP), was 
established as a result of the North American Free Trade 
Agreement Implementation Act of 1993 and is administered by an 
interagency committee chaired by the Department of the 
Treasury. Rather than providing funding directly to eligible 
communities, however, CAIP offers access to competitively 
awarded grants or enhanced access to credit. To date, the 
program has provided mainly loan guarantees to local 
businesses. Moreover, benefits under the CAIP program are 
limited to communities impacted by trade with Canada or Mexico. 
The Committee believes that there is no sound policy 
justification for limiting assistance only to communities 
adversely affected by trade and investment with Canada and 
Mexico rather than trade and investment with any country.
    The Committee also believes that there is a need for 
additional resources to be directed to the particular economic 
development needs of trade-impacted communities. No existing 
program, aside from CAIP, makes funds available solely to 
assist communities in responding to the unique challenges of 
import competition and plant relocations. By contrast, the 
Office of Community Trade Adjustment will for the first time 
combine both dedicated program resources and technical 
expertise in community trade adjustment. Although the program 
has been located in the Economic Development Administration, 
the Committee emphasizes that there should be a distinct and 
dedicated allocation of personnel and resources to trade-
impacted communities. Funding for existing economic adjustment 
efforts and trade-related adjustment efforts within EDA should 
not be commingled.
            Section 278. Authorization of appropriations

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 278 authorizes to be appropriated to the 
Department of Commerce such sums as may be necessary to carry 
out the purposes of this chapter for fiscal years 2002 through 
2006.
            Section 279. General provisions

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 279 requires the Director of the Office of 
Community Trade Adjustment to report within 6 months to the 
Senate Finance Committee and the House Ways and Means Committee 
concerning the establishment of the Trade Adjustment Assistance 
for Communities program. The Secretary of Commerce is 
authorized to prescribe necessary regulations to carryout the 
provisions of this chapter. Section 279 also provides that funds 
appropriated under this chapter shall be used to supplement rather than 
supplant other Federal, State, or local public funds expended to 
provide economic development assistance for communities.

                           REASONS FOR CHANGE

    A reporting requirement is necessary to assure complete and 
timely implementation of this program by the Department of 
Commerce. The section also makes clear that communities 
eligible for assistance under this chapter should not be denied 
other Federal, State, or local economic development assistance 
to which they may be entitled as a result of their 
participation in the Trade Adjustment Assistance for 
Communities program.

           TITLE IV.--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS


Section 401. Trade adjustment assistance for farmers

    Section 401 amends title II of the Trade Act of 1974 to add 
a new chapter (chapter 6) containing the following sections:
            Sec. 291. Definitions

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 291 provides definitions related to trade 
adjustment assistance for farmers.
            Sec. 292. Petitions; group eligibility

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 292 creates a trade adjustment assistance 
program for farmers and ranchers in the Department of 
Agriculture. Under this section, a group of agricultural 
commodity producers may petition the Secretary of Agriculture 
for trade adjustment assistance. The Secretary must certify the 
group as eligible for trade adjustment assistance for farmers 
if it is determined that the national average price in the most 
recent marketing year for the commodity produced by the group 
is less than 80 percent of the national average price in the 
preceding 5 marketing years and that increases in imports of 
that commodity contributed importantly to the decline in price. 
The section sets out a modified formula for establishing 
eligibility in subsequent years.

                           REASONS FOR CHANGE

    The Committee recognizes that the dislocations that can be 
suffered by farmers and ranchers when imports surge as a result 
of the liberalization of agricultural trade are as economically 
devastating as those experienced by manufacturing workers who 
lose their jobs when their plant relocates abroad. Yet, when 
rising imports result in a collapse of commodity prices, 
individual farmers and ranchers do not become unemployed in the 
same way as other workers and therefore cannot take advantage 
of the TAA program.
    At the July 20, 2001 hearing of the Subcommittee on 
International Trade of the Committee on Finance, Mr. Robert 
Carlson, President of the North Dakota Farmers Union, testified 
that:

          When agricultural trade agreements fail to provide 
        for fair competition or allow adjustments to offset the 
        impact of import surges, farmers, ranchers, and 
        fishermen are the ones who suffer due to their 
        inability to influence or rapidly adjust to changed 
        market conditions. * * * We believe extending TAA 
        benefits to include agricultural producers is a 
        reasonable, fair, and logical means to provide tools 
        for U.S. agriculture to better cope and adjust to the 
        effects of import competition.

July 20 Hearing Tr. at 52-53. The Committee believes that, like 
workers and firms, farmers and ranchers should therefore be 
eligible for short-term income support and for training and 
technical assistance to help them adjust to import competition. 
The Committee intends that the requirement that a petition be 
filed on behalf of a group of producers be applied in a manner 
similar to the practice of the Secretary of Labor under the TAA 
for workers program.
            Sec. 293. Determinations by Secretary of Agriculture

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 293 provides that the Secretary of Agriculture 
must determine whether a petitioning group meets the 
requirements of section 292 within 60 days after a petition is 
filed and publish notice of her determination in the Federal 
Register. Section 293 also provides that the Secretary shall 
terminate a certification whenever she determines that the 
decline in price for the agricultural commodity covered by a 
certification is no longer attributable to the conditions 
described in section 292, and shall publish a notice of 
termination in the Federal Register.

                           REASONS FOR CHANGE

    The procedures set forth in section 293 assure that the 
Secretary of Agriculture will rule promptly on petitions for 
certification, provide appropriate public notice of decisions 
to certify and decertify groups of farmers or ranchers, and 
assure that certifications are timely terminated when 
eligibility requirements are no longer satisfied.
            Sec. 294. Study by the Secretary of Agriculture when 
                    International Trade Commission begins investigation

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 294 requires the International Trade Commission 
(ITC) to notify the Secretary of Agriculture when the ITC 
begins a section 202 (i.e., safeguard) investigation of a 
particular agricultural commodity, and requires the Secretary 
of Agriculture to report to the President the extent to which 
the adjustment of producers of the affected agricultural 
commodity may be facilitated through the trade adjustment 
assistance for farmers program.

                           REASONS FOR CHANGE

    Section 294 is modeled on current section 224 of chapter 2 
of Title II of the Trade Act of 1974, as revised by the new 
section 225. Because the trade adjustment assistance for 
farmers program is administered by the Department of 
Agriculture, the report to the President must be prepared by 
the Secretary of Agriculture, rather than the Secretary of 
Labor, as required under existing section 224.
            Sec. 295. Benefit information to agricultural commodity 
                    producers

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 295 requires the Secretary of Agriculture to 
provide full information to producers about the benefit 
allowances, training, and other employment services available 
undertitle II of the Trade Act of 1974, as amended, and about 
the petition and application procedures and appropriate filing dates 
for such benefits. The Secretary is required to provide written notice 
to each agricultural producer that the Secretary has reason to believe 
is covered by a certification made under chapter 6 of title II of the 
Trade Act of 1974 and to publish notice of the benefits available to 
certified agricultural commodity producers in newspapers of general 
circulation in the areas in which such producers reside. The Secretary 
must also provide information concerning procedures for applying for 
and receiving all other Federal assistance services that may be 
available to workers facing economic distress.

                           REASONS FOR CHANGE

    Section 295 requires the Secretary of Agriculture to make 
outreach efforts in order to assure that eligible agricultural 
producers are given an opportunity to apply for and receive 
benefits under this title.
            Sec. 296. Qualifying requirements for agricultural 
                    commodity producers

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 296 provides that, in order to receive a trade 
adjustment allowance under this chapter, an agricultural 
producer's net farm income (as determined by the Secretary of 
Agriculture) for the most recent year must be 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 and the producer must: file 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; submit to the Secretary sufficient 
information to establish the amount of the agricultural 
commodity covered by the application that was produced by the 
producer in the most recent year; certify that the producer has 
not received cash benefits under any provision of title II of 
the Trade Act of 1974, as amended, other than chapter 6; and 
certify that the producer has met with an Extension Service 
employee or agent to obtain information and technical 
assistance that will assist the producer in adjusting to import 
competition with respect to the adversely affected agricultural 
commodity.
    Section 296 provides that an affected agricultural 
commodity producer is entitled to adjustment assistance in an 
amount equal to one-half the difference between 80 percent of 
the national average price for the affected agricultural 
commodity for the preceding 5 marketing years and the national 
average price in the most recent year, multiplied by the amount 
of the commodity produced by the producer in the most recent 
year. In determining the amount of adjustment assistance to 
which an affected agricultural producer is entitled in 
subsequent years, the national average price of the commodity 
is determined by using the 5-marketing-year period used to 
determine the amount of cash benefits for the first 
certification. The maximum amount of cash benefits an 
agricultural producer may receive in any 12-month period may 
not exceed $10,000. An agricultural producer entitled to 
receive a cash benefit under this chapter is not eligible for 
any other cash benefit under any other trade adjustment 
assistance program in title II of the Trade Act of 1974, but is 
entitled to employment services and training benefits under 
sections 239 and 240 of chapter 2.

                           REASONS FOR CHANGE

    Section 296 sets forth a formula that makes the amount of 
trade adjustment allowances available to agricultural commodity 
producers dependent upon the extent to which commodity prices 
have declined and the amount of the commodity produced. Section 
296 makes clear that a producer receiving trade adjustment 
allowances in the trade adjustment assistance for farmers 
program is not eligible to receive cash benefits under the 
trade adjustment assistance for workers program or any other 
cash benefits available under title II of the Trade Act of 
1974. In order to assist agricultural producers in adjusting to 
import competition, such producers are eligible for employment 
services and training benefits provided under the trade 
adjustment assistance for workers program. In addition, an 
agricultural producer may not receive benefits under this 
section until that producer meets with an Extension Service 
employee or agent to receive, at no cost to the producer, 
technical assistance that will assist the producer in adjusting 
to import competition, including information regarding the 
feasibility of substituting alternate commodities and technical 
assistance that will improve the competitiveness of the 
production and marketing of the adversely affected agricultural 
commodity.
            Sec. 297. Fraud and recovery of overpayments

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 297 establishes rules governing fraud and 
establishes procedures for recovery of overpayments.

                           REASONS FOR CHANGE

    New section 297 parallels section 246.
            Sec. 298. Authorization of appropriations

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 298 authorizes appropriations not to exceed $90 
million per year for the trade adjustment assistance for 
farmers program for fiscal years 2002 through 2006.

                           REASONS FOR CHANGE

    Section 298 authorizes a separate appropriation for the 
trade adjustment assistance for farmers program in order to 
assure adequate funding levels for this and other trade 
adjustment assistance programs under title II of the Trade Act 
of 1974.

          TITLE V.--TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN


Section 501. Short title

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    Section 501 provides that this title may be cited as the 
``Trade Adjustment Assistance for Fishermen Act.''

Section 502. Trade adjustment assistance for fishermen

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    Section 502 amends title II of the Trade Act of 1974 to add 
a new chapter (chapter 7) containing the following sections:
            Section 299. Definitions

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 299 provides definitions related to trade 
adjustment assistance for fishermen.
            Section 299A. Petitions; Group eligibility

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 299A creates a trade adjustment assistance 
program for fishermen in the Department of Commerce. Under this 
section, a group of fishermen may petition the Secretary of 
Commerce for trade adjustment assistance. The Secretary must 
certify the group as eligible for trade adjustment assistance 
for fishermen if it is determined that the national average 
price in the most recent marketing year for the fish produced 
by the group is less than 80 percent of the national average 
price in the preceding five marketing years and that increases 
in imports of that fish contributed importantly to the decline 
in price. The section sets out a modified formula for 
establishing eligibility in subsequent years.

                           REASONS FOR CHANGE

    The Committee recognizes that the dislocations that can be 
suffered by fishermen when imports surge as a result of the 
liberalization of agricultural trade are as economically 
devastating as those experienced by manufacturing workers who 
lose their jobs when their plant relocates abroad. Yet, when 
rising imports result in a collapse of commodity prices, 
individual fishermen do not become unemployed in the same way 
as other workers and therefore do not qualify for traditional 
TAA benefits.
    At the July 20, 2001, hearing of the Subcommittee on 
International Trade of the Committee on Finance, Mr. Robert 
Carlson, President of the North Dakota Farmers Union, testified 
that:

          When agricultural trade agreements fail to provide 
        for fair competition or allow adjustments to offset the 
        impact of import surges, farmers, ranchers, and 
        fishermen are the ones who suffer due to their 
        inability to influence or rapidly adjust to changed 
        market conditions. * * * We believe extending TAA 
        benefits to include agricultural producers is a 
        reasonable, fair, and logical means to provide tools 
        for U.S. agriculture to better cope and adjust to the 
        effects of import competition.

July 20 Hearing Tr. at 52-53. The Committee believes that, like 
workers, farmers, and firms, fishermen should therefore be 
eligible for short-term income support and for training and 
technical assistance to help them adjust to import competition. 
The Committee intends that the requirement that a petition be 
filed on behalf of a group of fishermen be applied in a manner 
similar to the practice of the Secretary of Labor under the TAA 
for workers program.
            Sec. 299B. Determinations by Secretary of Commerce

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 299B provides that the Secretary of Commerce 
must determine whether a petitioning group meets the 
requirements of section 299A within 60 days after a petition is 
filed and publish notice of her determination in the Federal 
Register. Section 299B also provides that the Secretary shall 
terminate a certification whenever he determines that the 
decline in price for the fish covered by a certification is no 
longer attributable to the conditions described in section 
299A, and shall publish a notice of termination in the Federal 
Register.

                           REASONS FOR CHANGE

    The procedures set forth in section 299B assure that the 
Secretary of Commerce will rule promptly on petitions for 
certification, provide appropriate public notice of decisions 
to certify and decertify groups of fishermen, and assure that 
certifications are timely terminated when eligibility 
requirements are no longer satisfied.
            Sec. 299C. Study by the Secretary of Commerce when 
                    International Trade Commission begins investigation

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 299C requires the International Trade 
Commission (ITC) to notify the Secretary of Commerce when the 
ITC begins a section 202 (i.e., safeguard) investigation of a 
particular fish, and requires the Secretary of Commerce to 
report to the President the extent to which the adjustment of 
producers of the affected fish may be facilitated through the 
trade adjustment assistance for fishermen program.

                           REASONS FOR CHANGE

    Section 299C is modeled on current section 224 of chapter 2 
of title II of the Trade Act of 1974, as revised by the new 
section 225. Because the trade adjustment assistance for 
fishermen program is administered by the Department of 
Commerce, the report to the President must be prepared by the 
Secretary of Commerce, rather than the Secretary of Labor, as 
required under existing section 224.
            Sec. 299D. Benefit information to producers

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 299D requires the Secretary of Commerce to 
provide full information to producers about the benefit 
allowances, training, and other employment services available 
under title II of the Trade Act of 1974, as amended, and about 
the petition and application procedures and appropriate filing 
dates for such benefits. The Secretary is required to provide 
written notice to each fisherman that the Secretary has reason 
to believe is covered by a certification made under chapter 7 
of title II of the Trade Act of 1974 and to publish notice of 
the benefits available to certified fishermen in newspapers of 
general circulation in the areas in which such fishermen 
reside. The Secretary must also provide information concerning 
procedures for applying for and receiving all other Federal 
assistance services that may be available to workers facing 
economic distress.

                           REASONS FOR CHANGE

    Section 299D requires the Secretary of Commerce to make 
outreach efforts in order to assure that eligible fishermen are 
given an opportunity to apply for and receive benefits under 
this title.
            Sec. 299E. Qualifying requirements for agricultural 
                    commodity producers

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 299E provides that, in order to receive a trade 
adjustment allowance under this chapter, a producer's net 
fishing or processing income (as determined by the Secretary of 
Commerce) for the most recent year must be less than the 
producer's net fishing or processing income for the latest year 
in which no adjustment assistance was received by the producer 
underthis chapter and the producer must: file 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 299A; submit to the Secretary sufficient information to 
establish the amount of the fish covered by the application that was 
produced by the producer in the most recent year; certify that the 
producer has not received cash benefits under any provision of title II 
of the Trade Act of 1974 other than chapter 7; certify that the 
producer has met with an employee or agent from a Trade Adjustment 
Assistance Center to obtain information and technical assistance that 
will assist the producer in adjusting to import competition with 
respect to the adversely affected fish; and certify that 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.
    Section 299E provides that an affected fish producer is 
entitled to adjustment assistance in an amount equal to one-
half the difference between 80 percent of the national average 
price for the affected fish for the preceding 5 marketing years 
and the national average price in the most recent year, 
multiplied by the amount of the fish produced by the producer 
in the most recent year. In determining the amount of 
adjustment assistance to which an affected fish producer is 
entitled in subsequent years, the national average price of the 
commodity is determined by using the 5-marketing-year period 
used to determine the amount of cash benefits for the first 
certification. In addition, a fish producer is eligible for 
benefits in subsequent years only if the Secretary or his 
designee determines that sufficient progress has been made 
implementing the adjustment plans developed under section 
299E(a)(4). The maximum amount of cash benefits a fish producer 
may receive in any 12-month period may not exceed $10,000. A 
fish producer entitled to receive a cash benefit under this 
chapter is not eligible for any other cash benefit under any 
other trade adjustment assistance program in title II of the 
Trade Act of 1974, but is entitled to employment services and 
training benefits under sections 239 and 240 of chapter 2.

                           REASONS FOR CHANGE

    Section 299E sets forth a formula that makes the amount of 
trade adjustment allowances available to fish producers 
dependent upon the extent to which fish prices have declined 
and the amount of the fish produced. Section 299E makes clear 
that a producer receiving trade adjustment allowances in the 
trade adjustment assistance for fishermen program is not 
eligible to receive cash benefits under the trade adjustment 
assistance for workers program or any other cash benefits 
available under title II of the Trade Act of 1974. In order to 
assist fish producers in adjusting to import competition, such 
producers are eligible for employment services and training 
benefits provided under the trade adjustment assistance for 
workers program. In addition, a fish producer may not receive 
benefits under this section until that producer meets with an 
employee or agent of a Trade Adjustment Assistance Center to 
receive, at no cost, technical assistance that will assist the 
producer in adjusting to import competition, including 
information regarding the feasibility of substituting alternate 
fish and technical assistance that will improve the 
competitiveness of the production and marketing of the 
adversely affected fish.
            Sec. 299F. Fraud and recovery of overpayments

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 299F establishes rules governing fraud and 
establishes procedures for recovery of overpayments.

                           REASONS FOR CHANGE

    New section 299F parallels section 246.
            Sec. 299G. Authorization of appropriations

                              PRESENT LAW

    No provision.

                        EXPLANATION OF PROVISION

    New section 299G authorizes appropriations not to exceed 
$10 million per year for the trade adjustment assistance for 
fishermen program for fiscal years 2002 through 2006.

                           REASONS FOR CHANGE

    Section 299G authorizes a separate appropriation for the 
trade adjustment assistance for fishermen program in order to 
assure adequate funding levels for this and other trade 
adjustment assistance programs under title II of the Trade Act 
of 1974.

 TITLE VI.--HEALTH INSURANCE COVERAGE OPTIONS FOR WORKERS ELIGIBLE FOR 
                      TRADE ADJUSTMENT ASSISTANCE


Section 601. Premium assistance for COBRA continuing coverage for 
        individuals and their families

                              PRESENT LAW

    The Consolidated Omnibus Budget Reconciliation Act of 1985 
(COBRA), requires an employer with 20 or more employees to 
offer the option of continued health insurance coverage at 
group rates to qualified employees and their families who are 
faced with loss of coverage due to certain events (e.g., 
termination, reduction of hours, retirement, death of an 
insured spouse). The coverage generally lasts for 18 months, 
but can last up to 36 months, depending on the nature of the 
event. The employer is not required to pay for this coverage; 
rather, the beneficiary can be required to pay up to 102 
percent of the premium. Employers who fail to provide the 
continued health insurance option are subject to tax and other 
penalties.
    COBRA applies to employers who purchase group health plans 
for their employees, as well as those who self-insure. An 
employer must comply with COBRA even if the employer does not 
contribute to the health plan, as long as the employer 
maintains such a plan.

                        EXPLANATION OF PROVISION

    The proposal would provide a 75 percent premium subsidy for 
up to 12 months for individuals eligible for trade adjustment 
assistance who are eligible for COBRA coverage.
    The Secretary of Treasury, in consultation with the 
Secretary of Labor, would administer the program through 
appropriate direct payment arrangements with group health 
plans, employers, and/or State unemployment insurance offices. 
States can choose to administer this program provided that they 
notify the Secretary and develop a plan for making the 
subsidies available by January 1, 2002. States would also be 
given the flexibility to provide ``wrap-around'' premium 
assistance for low-income workers who are COBRA eligible but 
not able to pay their share of the COBRA premium.

                           REASONS FOR CHANGE

    The Committee notes that the high cost of COBRA coverage 
makes it unaffordable for many families. Employees generally 
pay 102 percent of the premium, at an average annual cost of 
$2,650 for an individual and $7,053 for a family. It is 
extremely difficult for workers who lose their jobs to pay 
these high COBRA premiums. As the U.S. Trade Deficit Review 
Commission noted in 2000, ``[w]orkers receiving $150 to $200 a 
week of unemployment, with no other income, trying to support a 
family, and attend school to obtain suitable future employment, 
can't afford that.'' U.S. Trade Deficit Review Commission, The 
U.S. Trade Deficit: Causes, Consequences and Recommendations 
for Action (Nov. 2000) at 172. Not surprisingly, only about 20 
percent of COBRA-eligible workers take up this option. 
Congressional Research Service, Health Insurance Continuation 
Coverage Under COBRA (Jan. 7, 2002) at 7, citing Kaiser Family 
Foundation and Health Research and Educational Trust, Employer 
Health Benefits 1999 Annual Survey (1999). Accordingly, the 
U.S. Trade Deficit Review Commission found that ``[t]here is a 
need to find ways to fill the gap in health insurance coverage 
between the time when a worker loses one job and starts 
another.'' Id. at 172. The COBRA premium subsidy established in 
this section assists workers both by reducing COBRA premiums 
for which the workers are responsible to a more affordable 
amount and by eliminating the cash flow problem that would 
exist if workers were required to pay the full premium amount 
and await later reimbursement.

Section 602. State option to provide temporary Medicaid coverage for 
        certain uninsured individuals

                              present law

    Medicaid is a means-tested health care entitlement program 
financed by both States and the Federal Government. The program 
was created to assist low-income Americans, but coverage is 
dependent upon several other criteria in addition to income. 
Eligibility is generally limited to those persons falling into 
particular ``categories,'' such as low-income children, 
pregnant women, the elderly, people with disabilities and 
parents meeting specific income thresholds.
    By law, the Federal Government matches at least 50 percent 
of the cost of Medicaid in each State, and can match as much as 
83 percent, depending on a State's per capita income. On 
average, the Federal Government pays 57 percent of the cost of 
Medicaid in each State, with relatively poor States receiving a 
higher matching rate than relatively wealthy States.
    States have considerable flexibility in structuring their 
programs within broad Federal guidelines governing eligibility, 
provider payment levels and benefits. As a result, Medicaid 
programs vary widely from State to State.

                        explanation of provision

    Section 602 creates a temporary State option to provide 
Medicaid coverage to workers receiving trade adjustment 
assistance who are not eligible for COBRA. Such workers include 
those who worked in small businesses, or in firms that went 
bankrupt or dropped health coverage for their remaining 
employees.
    States choosing this option would receive the enhanced CHIP 
(Children's Health Insurance Program) matching rate and are 
permitted to use the same eligibility criteria allowed through 
the Workers Incentive Improvement Act of 2000 (i.e., full 
subsidies up to 250 percent of poverty and sliding scale 
assistance up to 450 percent of poverty).

                           reasons for change

    Most American workers eligible for trade adjustment 
assistance are not eligible for COBRA coverage. A State 
Medicaid option for such workers will provide affordable 
coverage for displaced workers who otherwise would be uninsured 
during their period of unemployment, helping enable those 
workers to complete appropriate retraining. Because the 
proposal builds on a well-established health care program that 
operates in every State, States will be able to enroll new 
eligibles immediately and reduce the likelihood that dislocated 
workers will go without health insurance for a significant 
period of time. The enhanced matching rate, which averages 70 
percent, and the flexibility to set income and resource 
eligibility standards as they see fit, will further encourage 
States to utilize this option.

Section 603. State option to provide temporary coverage under Medicaid 
        for the unsubsidized portion of COBRA continuation premiums

                              present law

    No provision.

                        explanation of provision

    Under new section 603, a State may elect to subsidize 
through its Medicaid program, for up to 12 months, the 
remainder of the COBRA premium for low-income workers eligible 
for the 75 percent COBRA premium subsidy.

                           reasons for change

    Enabling States to subsidize the remainder of the COBRA 
premium for low-income workers will help more workers in the 
trade adjustment assistance program to maintain their health 
insurance while workers complete retraining and find new 
employment.

Section 604. Definitions

                              present law

    No provision.

                        explanation of provision

    Section 604 defines terms used in this title, including 
COBRA continuation coverage and eligible individual.

               TITLE VII.--CONFORMING AND EFFECTIVE DATE


Section 701. Conforming amendments

                              present law

    No provision.

                        explanation of provision

    Section 701 makes conforming amendments to the Trade Act of 
1974, including revisions to the termination provisions, 
effective dates, and table of contents, conforming amendments 
to the Internal Revenue Code, and conforming amendments to 
Title 28 of the U.S. Code, concerning judicial review.

           TITLE VIII.--SAVINGS PROVISIONS AND EFFECTIVE DATE


Section 801. Savings provisions

                              present law

    No provision.

                        explanation of provision

    Section 801 provides that the provisions of this Act shall 
not affect any petition for certification for benefits under 
chapter 2 of title II of the Trade Act of 1974 that is in 
effect on September 30, 2001, nor shall any provision of this 
Act be deemed to prohibit the discontinuance or modification of 
any proceeding to the extent that the proceeding could have 
been discontinued or modified if this Act had not been enacted. 
Section 801 also provides that the provisions of this Act shall 
not affect any suit commenced before October 1, 2001, and that 
no suit, action, or other proceeding commenced by or against 
the Federal Government, or by 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.

                           reasons for change

    Section 801 preserves rights under existing certifications 
and suits.

Section 802. Effective date

                              present law

    No provision.

                        explanation of provision

    Section 802 provides that, except as otherwise provided, 
the amendments made by this Act shall apply to 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, petitions for certification 
filed under chapter 2 or 3 of title II of the Trade Act of 1974 
before the date that is 90 days after the date of enactment of 
this Act that are pending on such date, and certifications for 
assistance under chapter 4 of title II of the Trade Act of 1974 
issued on or after the date which is 90 days after the date of 
enactment of this Act. Any worker certified as eligible before 
the effective date of this Act shall continue to receive trade 
adjustment assistance and other benefits under chapter 2 of 
title II of the Trade Act of 1974, as in effect on the day 
before the effective date of the Act.

                           reasons for change

    Section 802 provides that the provisions of this Act take 
effect with respect to petitionsfiled after or pending on the 
date which is 90 days after enactment of the Act. The Committee 
believes that the amendments to chapters 2 and 3 of title II of the 
Trade Act of 1974 made by this Act are of sufficient complexity to 
preclude making them effective upon enactment, but not so complex as to 
require more than 3 months to implement.

                   TITLE IX.--CUSTOMS REAUTHORIZATION

    During its consideration of the present bill, the Committee 
accepted, by unanimous consent without objection, an amendment 
offered by Senator Grassley as modified by a second degree 
amendment offered by Senator Kyl. The Grassley/Kyl amendment, 
contained in title IX, authorizes appropriations for fiscal 
years 2002 and 2003 for the U.S. Customs Service, including 
specific authorization for anti-terrorism, drug interdiction, 
and the prevention of child pornography. It provides the 
Customs Service with authority to search outbound mail so long 
as privacy and fourth amendment protections are observed; 
requires the Treasury Department to build a system through the 
regulatory process to handle the collection of advanced 
information for inbound cargo and inbound and outbound 
passengers from carriers for the purpose of targeting both 
terrorist activity and smuggling; changes Customs' audit 
process; permits emergency adjustment to Customs offices and 
staff; raises the duty exemption on U.S. residents returning 
from abroad from $400 to $800; authorizes several studies and 
reports on Customs' operations; provides additional funding to 
textile transshipment efforts and assistance to African 
countries for implementation of the African Growth and 
Opportunities Act; dedicates resources to reestablish the New 
York Customs office formerly at the World Trade Center, which 
was destroyed in the terrorist attack of September 11; provides 
more resources to the northern border; and authorizes funding 
for the Customs Automated Commercial Environment. Title IX 
would also authorize appropriations for the Office of the 
United States Trade Representative and the International Trade 
Commission. In addition, title IX expresses the sense of the 
Senate that 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.

                   TITLE X.--MISCELLANEOUS PROVISIONS


Section 1001. Country of origin labeling of fish and shellfish products

                              present law

    No provision.

                        explanation of provision

    New section 1001 requires retailers of certain fish, fresh 
fruit, and vegetables to inform consumers at the final point of 
sale of the country of origin of the product offered for sale. 
The provision details how such products may be labeled or 
otherwise identified in order to designate its country of 
origin. Further, it permits a retailer to designate such 
products as having United States origin if the commodity is 
harvested and processed in the United States, or, in the case 
of farm-raised fish and shellfish, was hatched, raised, 
harvested and processed in the United States.

                           reasons for change

    During its consideration of the present bill, the Committee 
accepted by recorded vote an amendment offered by Senator 
Murkowski to require country of origin labeling of certain 
fish, fresh fruits, and vegetables. The amendment is intended 
to assist consumers in making informed choices in the selection 
and purchase of such products.

Section 1002. Sugar policy

                              present law

    No provision.

                        explanation of provision

    During its consideration of the present bill, the Committee 
accepted by voice vote an amendment offered by Senator Breaux 
and co-sponsored by Senator Thomas to establish a sugar anti-
circumvention program. The amendment requires the Secretary of 
Agriculture to identify imports of articles that are 
circumventing tariff-rate quotas on sugars, syrups, or sugar-
containing products imposed under chapters 17, 18, 19, and 21 
of the Harmonized Tariff Schedule and report to the President 
articles found to be circumventing such tariff-rate quotas. 
Upon receiving the Secretary's report, the President shall, by 
proclamation, include any identified article in the appropriate 
tariff-rate quota provision of the Harmonized Tariff Schedule.

                           reasons for change

    The provision is intended to stop future sugar 
circumvention attempts which in the recent past have disrupted 
the United States market for sweeteners; injured domestic 
growers, refiners, and processors of sugar; and adversely 
affected legitimate exporters of sugar.

                        IV. CONGRESSIONAL ACTION

    On July 19, 2001, Senator Bingaman (for himself and others) 
introduced S. 1209, a bill to consolidate and improve the trade 
adjustment assistance programs, to provide community-based 
economic development assistance for trade-affected communities, 
and for other purposes. The bill was read twice and referred to 
the Committee on Finance.
    On July 19, 2001, the Committee on Finance held a hearing 
on reauthorization and reform of the trade adjustment 
assistance programs. On July 20, 2001, the Subcommittee on 
International Trade of the Committee on Finance held a second 
hearing on the same topic.
    On December 4, 2001, the Committee on Finance held a markup 
session to consider S. 1209. The Chairman offered an amendment 
in the nature of a substitute to S. 1209. The substance of the 
amendment in the nature of a substitute was the text of S. 1209 
with certain modifications. Several amendments to the amendment 
in the nature of a substitute were accepted by the Committee. 
The bill as amended was ordered favorably reported on the basis 
of a voice vote, with a quorum present, on December 4, 2001.

             V. VOTE OF THE COMMITTEE IN REPORTING THE BILL

    In compliance with paragraph 7(c) 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 S. 1209.

                      A. Motion to Report the Bill

    S. 1209 as amended by the Chairman's amendment in the 
nature of a substitute and as further amended was ordered 
favorably reported by voice vote with a quorum present on 
December 4, 2001.

                         B. Votes on Amendments

    (1) An amendment by Senator Murkowski to provide for 
country of origin labeling of fish and shellfish products 
passed by a vote of 14 ayes and 5 nays.
    Ayes: Baucus, Rockefeller, Daschle (proxy), Breaux, Conrad, 
Graham (proxy), Jeffords (proxy), Bingaman, Kerry (proxy), 
Grassley, Hatch, Murkowski, Snowe, Thomas.
    Nays: Lincoln, Nickles (proxy), Gramm, Thompson (proxy), 
Kyl.
    (2) An amendment by Senator Breaux to maintain the 
integrity of the tariff-rate quotas on sugars, syrups, and 
sugar-containing products by stopping circumvention was adopted 
by voice vote.
    (3) An amendment by Senator Grassley to express the sense 
of the Senate that Customs user fees shall only be used for 
Customs Service operations and programs, with a second-degree 
amendment by Senator Kyl authorizing appropriations for fiscal 
years 2002 and 2003 for the U.S. Customs Service, Office of the 
U.S. Trade Representative, and the U.S. International Trade 
Commission, was accepted by the Chairman by unanimous consent, 
without objection.

                    VI. BUDGETARY IMPACT OF THE BILL


                         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: The Committee agrees with the estimate prepared by 
CBO which is included below, with one exception. Although CBO 
estimates that the wage insurance program would cost about $85 
million annually, the Committee believes that the net cost of 
the wage insurance program will be zero, and may, in fact, 
reduce overall outlays for the TAA for workers program. The 
Committee bases this conclusion on the bill's requirement that 
a worker enter the wage insurance program after TAA 
certification, but before receiving any trade adjustment 
allowances. Thus, in order to receive the wage subsidy, the 
worker must forego his right to trade adjustment allowances. 
The Committee estimates that the maximum wage subsidy of 
$10,000 per worker over 2 years will on average be less than 
the average cost of providing trade adjustment allowances to 
the same worker under this bill.

                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 for 
Workers, Farmers, Fishermen, Communities, and Firms Act of 2002 
involves increased budget authority in the amount of $8.8 
billion over the period fiscal year 2002 through fiscal year 
2011 and increased outlays in the amount of $8.6 billion over 
the same period.

                    2. tax expenditures and revenues

    In accordance with section 308(a)(2) of the Budget Act, the 
Committee states that the Trade Adjustment Assistance for 
Workers, Farmers, Fishermen, Communities, and Firms Act of 2002 
will result in no change in tax expenditures over the period 
fiscal years 2002-2011, but will diminish duty revenues by 
about $3 million in fiscal year 2002 and $4 million per year 
thereafter as a result of the increase in the duty exemption 
for travelers from abroad from $400 to $800.

            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 for Workers, Farmers, 
Fishermen, Communities, and Firms Act of 2002:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, January 28, 2002.
Hon. Max Baucus,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1209, the Trade 
Adjustment Assistance for Workers, Farmers, Communities, and 
Firms Act of 2001.
    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.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

S.1209--Trade Adjustment Assistance for Workers, Farmers, Communities, 
        and Firms Act of 2001

    Summary: S.1209 would extend the Trade Adjustment 
Assistance (TAA) programs for workers and for firms through 
fiscal year 2006. The authorizations for these programs expired 
at the end of fiscal year 2001, but the Departments of Labor, 
Health and Human Services, Education and Related Agencies 
Appropriations Act, 2002, funded these programs for 2002. The 
bill also would expand the existing TAA program; create a 
number of new trade-related federal programs designed to 
benefit farmers, fishermen, and communities; and subsidize 
health insurance for those who qualify for TAA. This 
legislation also would increase the personal duty exemption for 
travelers entering the United States. In addition, S.1209 would 
authorize appropriations for 2002 and 2003 for the U.S. Customs 
Service, the Office of the U.S. Trade Representative, and the 
International Trade Commission.
    For fiscal years 2002-2011, CBO estimates that enacting the 
bill would increase direct spending by about $12.4 billion and 
reduce revenues by $39 million. Because the bill would affect 
revenues and direct spending, pay-as-you-go procedures would 
apply. However, the costs of extending TAA are assumed in CBO's 
estimates of baseline spending. Pay-as-you-go procedures would 
apply only to the new direct spending above the costs already 
assumed in baseline. Those net costs above baseline spending--
as projected in CBO's May 2001 baseline--would total $8.6 
billion in outlays over the 2002-2011 period. We also estimate 
that implementing the bill would cost about $3 billion, subject 
to appropriation of the necessary funds.
    S. 1209 contains three intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act (UMRA). Two of 
those mandates would impose no costs on state, local, and 
tribal governments. CBO cannot estimate the costs of a third 
mandate (regarding the closure of ports of entry), but it is 
unlikely that any such costs over the next five years would 
exceed the threshold established in UMRA ($58 million in 2002, 
adjusted annually for inflation). Other provisions of the bill 
would enable states to expand their Medicaid program and 
provide benefits to individuals who would be eligible for trade 
adjustment assistance. CBO estimates state spending for 
increased enrollment and Medicaid coverage of a portion of 
health insurance premiums would total about $142 million over 
the 2002-2006 period. The bill also would provide assistance to 
some communities for strategic management and job development.
    S. 1209 would impose several private-sector mandates, as 
defined by UMRA. These include new requirements on:
          Certain private-sector employers who provide health 
        insurance coverage for their employees;
          Transporters requiring clearances under U.S. customs 
        laws;
          Retailers and suppliers for country-of-origin 
        labeling of certain fish, fresh fruits, and vegetables; 
        and
          Certain importers of sugar and sugar-containing 
        products.
    CBO estimates the direct costs of the first two mandates 
would not exceed the annual threshold established by UMRA ($115 
million in 2002, adjusted for inflation), but that the third 
would. CBO has no basis on which to estimate the direct costs 
of the last mandate.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 1209 is shown in Table 1. The costs of 
this legislation fall within budget functions 150 
(international affairs), 450 (community and regional 
development), 500 (education, training, employment, and social 
services), 550 (health), 600 (income security), 750 
(administration of justice), and 800 (general government).

     TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 1209, THE TRADE ADJUSTMENT ASSISTANCE FOR WORKERS, FARMERS,
                                       COMMUNITIES, AND FIRMS ACT OF 2001
----------------------------------------------------------------------------------------------------------------
                                                      By fiscal year, in millions of dollars--
                                  ------------------------------------------------------------------------------
                                    2002   2003    2004    2005    2006    2007    2008    2009    2010    2011
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Title I, TAA for Workers: \1\
  Estimated Budget Authority.....    117     726     921     962     982     999   1,018   1,039   1,061   1,081
  Estimated Outlays..............     10     643     874     934     971     995   1,014   1,034   1,056   1,077
Title IV, TAA for Farmers: \2\
  Estimated Budget Authority.....     90      90      90      90      90       0       0       0       0       0
  Estimated Outlays..............     68      88      90      90      90      23       2       0       0       0
Title V, TAA for Fishermen:
  Estimated Budget Authority.....     10      10      10      10      10       0       0       0       0       0
  Estimated Outlays..............      0       3       5       8      10       9       7       5       3       0
Title VI, Health Insurance
 Coverage: \2\
  Estimated Budget Authority.....     54     262     286     309     331     353     375     398     428     454
  Estimated Outlays..............     54     262     286     309     331     353     375     398     428     454
Total:
  Estimated Budget Authority.....    271   1,088   1,307   1,371   1,413   1,352   1,393   1,437   1,489   1,535
  Estimated Outlays..............    132     996   1,255   1,341   1,402   1,380   1,398   1,437   1,486   1,531
Offsets, Spending Assumed in May
 2001 Baseline: \1\
  Estimated Budget Authority.....    417     396     397     404     410     417     425     439     448     456
  Estimated Outlays..............    417     396     397     404     410     417     425     439     448     456
Net Changes in Direct Spending:
  Estimated Budget Authority.....    271     692     910     967   1,003     935     968     998   1,041   1,079
  Estimated Outlays..............    132     600     858     937     992     963     973     998   1,038   1,075

                                               CHANGES IN REVENUES

Estimated Revenues...............     -3      -4      -4      -4      -4      -4      -4      -4      -4      -4

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Title II, TAA for Firms:
  Estimated Authorization Level..      5      16      16      16      16       0       0       0       0       0
  Estimated Outlays..............      2       4       7      14      16      13      10       7       3       0
Title III, TAA for Communities:
  Estimated Authorization Level..      5      10      10      10      10       0       0       0       0       0
  Estimated Outlays..............      1       3       5       7       9       8       6       4       2       0
Title IX, Customs Service and
 Trade Agency Reauthorization:
  Estimated Authorization Level:     107   2,825       0       0       0       0       0       0       0       0
   \3\...........................
  Estimated Outlays..............     46   2,342     401     143       0       0       0       0       0       0
Total:
  Estimated Authorization Level..    117   2,851      26      26      26       0       0       0       0       0
  Estimated Outlays..............     49   2,349     413     164      25      21      16      11       5       0
----------------------------------------------------------------------------------------------------------------
\1\ Although authorization for the TAA program expired at the end of fiscal year 2011, the costs of extending it
  are assumed in CBO's May 2001 baseline as required under section 257 of the Balanced Budget and Emergency
  Deficit Control Act. The Departments of Labor, Health and Human Services, Education and Related Agencies
  Appropriations Act, 2002, appropriates $416 million for these programs for 2002.
\2\ Under section 257 of the Balanced Budget and Emergency Deficit Control Act, the costs of extending programs
  first enacted after 1997 are to be contained in baseline only at the direction of the budget committees. The
  Senate Budget Committee has directed that spending for these provisions should be assumed to continue beyond
  2006.
\3\ An appropriation for these agencies for fiscal year 2002 has been enacted. Most of the additional funding
  that would be authorized by S. 1209 would be for reestablishment of customs operations in New York City.

            Basis of estimate
    For this estimate, CBO assumes that S. 1209 will be enacted 
in the spring of 2002. We estimate that enacting the bill would 
increase direct spending, relative to CBO's May 2001 baseline 
projections, by about $8.6 billion over the 2002-2011 period. 
Enacting the bill also would reduce revenues by about $4 
million a year. Assuming the appropriation of the necessary 
funds, we estimate that implementing the bill would cost about 
$50 million in 2002, $2.3 billion in 2003, and about $3 billion 
over the 2002-2010 period.
            Direct spending
    S. 1209 would extend and expand TAA for workers through 
2006, in part by merging the regular TAA program for workers 
with the TAA program established for workers who lost their 
jobs due to implementation of the North American Free Trade 
Agreement (NAFTA). The bill also would create TAA programs for 
fishermen and farmers, and would help subsidize health 
insurance for TAA beneficiaries. CBO estimates that these 
provisions would result in total direct spending of $12.4 
billion over the 2002-2011 period, an increase of $8.6 billion 
over spending assumed in CBO's May 2001 baseline.
    Trade Adjustment Assistance for Workers--Title I of S. 1209 
would reauthorize TAA for workers through fiscal year 2006. 
This program provides extended unemployment compensation and 
training benefits for workers who lose their jobs because of 
increases in imports. In addition, it would expand eligibility 
for the program to include secondary workers, workers who lose 
their jobs due to shifts in production, and certain other 
workers. Secondary workers would include workers laid off from 
firms that supply companies that experience a trade-related 
loss of employment. S. 1209 also would increase the maximum 
number of weeks a beneficiary could collect TAA, and would 
increase the caps on certain benefits. Finally, it would create 
a new program that would provide wage subsidies to certain 
workers. Together, the changes would cost about $8.6 billion 
over the 2002-2011 period. This figure represents an increase 
of $4.8 billion over spending assumed in baseline for TAA for 
workers. Over 50 percent of the increase--about $2.7 billion is 
for increased caseload that would result from enacting the 
bill. Another $1.3 billion would result from the increases in 
the average time allowed to draw benefits. The proposal to 
provide wage insurance to certain workers makes up $0.6 billion 
of the increase. The remainder--about $250 million--would be 
for increases in administrative costs.
    Expanded Eligibility.--The bill would merge the regular and 
NAFTA-TAA programs, creating one TAA program with similar 
eligibility criteria. Under the proposed provisions, secondary 
workers and workers who lose their jobs due to shifts in 
productions (plant relocations) would be eligible. In addition, 
petitioning workers would no longer need to show that sales of 
their employer decreased absolutely. Instead, they could 
petition for coverage under TAA if their layoff was 
precipitated by increased imports. Finally, the bill includes a 
special provision for workers involved in the production of 
taconite pellets. CBO estimates that these changes would nearly 
double the TAA caseload. In order to provide training benefits 
for these additional people, the current cap on training (a 
combined total of $110 million per year for the regular and 
NAFTA-TAA programs) would be raised to $300 million annually. 
CBO estimates that these increases in caseload would result in 
additional spending of about $2.6 billion over the next 10 
years.
    In the past five years, the Department of Labor (DOL) 
certified an average of 125,000 workers each year, although 
there was considerable annual variation. Based on information 
provided by the Bureau of Labor Statistics, the DOL's 
Employment and Training Administration, and a report of the 
General Accounting Office, CBO estimates that these provisions 
would increase the number of certified workers by about 100,000 
per year. The provision covering secondary workers would make 
up about three-fourths of the increase in caseload. Covering 
shifts in production would make up about one-fifth of the 
increase, with the remainder split among the other eligibility 
provisions. CBO assumes that roughly 25 percent of certified 
workers would ultimately draw the extended unemployment and 
training benefits, which total about $10,000 per beneficiary 
under current law.
    Increases in Benefits.--Title I also would increase the 
number of weeks that individuals could draw TAA cash benefits. 
In addition, it would increase the maximum benefits for job 
search and relocation allowances to $1,200 and $1,500, 
respectively. Under current law, each category is capped at 
$800 per beneficiary. The estimated costs of these benefit 
enhancements total about $1.2 billion over 10 years.
    The bill would allow beneficiaries to collect TAA benefits 
for an additional 26 weeks. Currently, TAA beneficiaries may 
draw up to 52 weeks of benefits after their regular 
unemployment compensation has expired. This bill would permit 
beneficiaries to collect these cash payments for up to 78 
weeks. CBO estimates that this provision would lead to an 
increase of about 11 weeks in the average duration of benefits, 
resulting in a cost of about $1.2 billion over 10 years. In 
addition, CBO estimates that provisions of S. 1209 that would 
subsidize the cost of health insurance for TAA beneficiaries 
would result in slightly longer stays on TAA. CBO estimates 
this interaction to cost roughly $100 million over 10 years. 
The increase in amounts permitted for job search and relocation 
allowances is expected to have only a minimal impact on the 
costs of this bill.
    Wage Insurance Program.--S. 1209 would require DOL to 
create a new wage insurance program. Workers over 50 years of 
age who are certified under the TAA program could be eligible 
to receive a wage subsidy of up to $10,000, if they take a 
lower paying job and meet certain other criteria. Eligible 
workers who receive less than $40,000 in their new job would 
receive up to 50 percent of the difference between their 
previous job's wage and the new one. Workers with annual 
salaries between $40,000 and $50,000 would receive a subsidy of 
25 percent of the difference. CBO estimates this program--when 
fully phased in--would cost about $85 million annually. These 
costs are based on data from the Displaced Worker Supplement to 
the February 1998 Current Population Survey.
    Administrative Expenses.--Currently the Department of Labor 
provides to the states about 15 percent of total training costs 
for administrative expenses. Although this is not set in law or 
regulation, CBO assumes this practice will continue. Combined 
training benefits arecapped at $110 million under current law, 
this cap would increase to $300 million under S. 1209. Thus, under this 
assumption, administrative costs would increase from about $17 million 
per year to about $45 million annually.
    Trade Adjustment Assistance for Farmers.--Title IV would 
require the Department of Agriculture to provide funds to 
eligible farmers when the price of an agricultural commodity is 
less than 80 percent of the national average price for such 
commodity for the five marketing years preceding the most 
recent marketing year, and increases in imports contributed 
importantly to the decline in price. The bill would provide $90 
million a year for fiscal years 2002 through 2006 to carry out 
this purpose. For this estimate, CBO assumes that the 
additional assistance for farmers would not continue beyond 
2006. CBO estimates that these provisions would increase direct 
spending by $426 million over the 2002-2006 period, and $450 
million over the 2002-2011 period.
    Trade Adjustment Assistance for Fishermen.--Title V would 
require the Department of Commerce to provide funds to 
fishermen when the price of their catches declines a certain 
amount because of foreign competition. The bill would provide 
$10 million a year during the next five years for this purpose. 
Based on information from the Department of Commerce, CBO 
estimates that these provisions would increase direct spending 
by $27 million over the 2002-2006 period and by $50 million 
over the 2002-2011 period.
    Health Insurance Coverage Options.--Title VI would 
subsidize private health insurance coverage for certain 
individuals certified as eligible for adjustment assistance. 
The bill also would permit states to enroll in Medicaid certain 
individuals (and members of their families) who are eligible 
for adjustment assistance but are not eligible for the subsidy 
of private health insurance. The federal government would 
reimburse states at the enhanced federal medical assistance 
percentage (FMAP) that applies to the State Children's Health 
Insurance Program (SCHIP). CBO estimates those provisions would 
increase federal spending by $87 million in 2002 and $3.3 
billion over the 2002-2011 period.
    Premium Assistance for COBRA Continuation Coverage.--The 
Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 
permits certain individuals with health insurance obtained 
through their employer to maintain that insurance coverage for 
up to 18 months (in some cases, up to 36 months) after leaving 
their job by paying the full COBRA premium (the employee's 
share and the employer's share of the regular premium for 
health insurance plus a 2 percent administrative fee).
    S. 1209 would require the Secretary of the Treasury to 
establish a program to pay 75 percent of the COBRA premium for 
individuals eligible for COBRA who are certified as eligible 
for adjustment assistance. The subsidy would be available for 
up to 12 months of COBRA coverage. The bill would require the 
Secretary to establish the subsidy program within 90 days of 
enactment, and would permit implementation before the issuance 
of final regulations. The bill would authorize the subsidy 
program through 2006. However, based on instructions from the 
staff of the Senate Budget Committee, this estimate assumes the 
program would continue after 2006.\1\
---------------------------------------------------------------------------
    \1\ The budget committees are responsible for determining whether 
new programs with direct spending that is estimated to exceed $50 
million in the last year authorized are assumed to expire or to 
continue in the baseline.
---------------------------------------------------------------------------
    The bill would also permit state Medicaid programs to pay 
the remaining 25 percent of the COBRA premium for individuals 
participating in the federally subsidized program whose family 
income is no higher than 200 percent of the federal poverty 
level. The federal government would reimburse each state at the 
enhanced FMAP that applies to SCHIP, which is 70 percent on 
average. CBO assumes that states with half of the eligible 
population would offer the additional subsidy for Medicaid 
coverage.
    Under current law, about 25 percent of eligible individuals 
purchase unsubsidized COBRA continuation coverage. CBO assumes 
that participation in the subsidized program would rise from 
that level as eligible individuals become aware that a subsidy 
is available, and as implementation of the program eliminates 
the need for participants to pay the full COBRA premium and 
claim reimbursement.
    CBO estimates that about 75 percent of eligible individuals 
would purchase continuation coverage with a 75 percent subsidy, 
as would about 95 percent of those offered a 100 percent 
subsidy.\2\ In aggregate, CBO estimates that about 80 percent 
of eligible individuals would participate in the subsidized 
COBRA program once it is fully implemented. The estimate 
assumes that participation in the COBRA subsidy would achieve 
that level beginning with those who become eligible for COBRA 
coverage in April 2002.
---------------------------------------------------------------------------
    \2\ CBO estimates that about 20 percent of participants would 
receive a 100 percent subsidy of the COBRA premium by combining the 
federal 75 percent subsidy with the state-administered 25 percent 
subsidy.
---------------------------------------------------------------------------
    CBO estimates that about 110,000 people would become 
eligible for the subsidy of COBRA continuation coverage each 
year, and that about 90,000 would participate in the COBRA 
subsidy. The estimate assumes that participants would receive 
COBRA continuation coverage for an average of six months, with 
those receiving a 100 percent subsidy averaging eight months. 
Of the 90,000 people getting a COBRA subsidy, CBO estimates 
that 20,000 would participate in the state-run program through 
Medicaid and receive the 100 percent COBRA subsidy.
    COBRA premiums will average about $450 a month in 2002. On 
average, therefore, the 75 percent subsidy would cost about 
$340 a month in 2002, while the federal share of the state-
administered 25 percent subsidy would cost about $80 a month. 
In 2002, CBO estimates that spending for the program offering a 
75 percent subsidy would total $41 million, and the federal 
share of the state-administered program offering a 25 percent 
subsidy would total $3 million. Estimated spending for these 
subsidies would total $1 billion over the 2002-2006 period and 
$2.6 billion over the 2002-2011 period.
    State option to provide temporary Medicaid coverage for 
certain uninsured individuals.--The bill would allow states to 
provide Medicaid coverage to individuals who are certified as 
eligible for adjustment assistance, are not eligible for COBRA 
continuation coverage, and are uninsured. In addition, states 
would have the option to cover the dependents of those 
individuals. States could adopt eligibility criteria used in 
their Medicaid programs or could use less restrictive 
standards; they could also require certain beneficiaries to pay 
a limited premium amount.
    States would provide up to 12 months of Medicaid coverage; 
however, benefits would cease if the individual gained health 
insurance before the end of the 12-month period. States would 
also have the option of providing up to three months of 
retroactive benefits.
    The federal share of benefits for each state would equal 
the state's reimbursement rate under SCHIP, which is 70 percent 
on average. The territories, whose federal Medicaid 
reimbursement is capped, would receive an increase in their 
federal cap for the temporary coverage in this bill.
    Based on an analysis of insurance status of workers from 
the Current Population Survey, CBO anticipates that between 20 
percent and 25 percent of the individuals who are eligible for 
adjustment assistance (about 50,000 people in fiscal year 2002) 
would be eligible if all states took up this option to the 
fullest extent. Under the assumption that states with two-
thirds of the eligible individuals take up the option for 
people under 200 percent of poverty and that states with one-
quarter of eligible individuals extend coverage for individuals 
with higher incomes, CBO estimates that the number of affected 
workers eligible for the Medicaid coverage would be about 
27,000 a year. After accounting for dependents and people who 
would otherwise become eligible for Medicaid, the number of new 
Medicaid eligibles would be about 60,000 a year. About 60 
percent of those eligible would be adults; the balance would be 
children.
    CBO assumed that on average 55 percent of those eligible 
would participate; while we anticipate high participation for 
the poor and near poor, it is likely to be much lower for those 
with higher incomes. In estimating the costs of this proposal, 
we assumed that people would be on the rolls for 11 months on 
average and that there would be a lag of several months between 
the loss of employment and enrollment in the Medicaid program. 
CBO also expects that about half the states taking up this 
option would choose to provide retroactive benefits. CBO 
estimates that the provision would increase enrollment by about 
10,000 full-year-equivalent individuals in fiscal year 2002 and 
30,000 annually after that.
    CBO assumes the federal share of benefits at the enhanced 
match rate would be about $1,960 per adult and $1,400 per child 
(in 2002 dollar). CBO estimates that the federal costs of the 
provision would be about $300 million over the 2002-2006 period 
and about $700 million over the 2002-2011 period.
            Revenues
    S. 1209, if enacted, would decrease federal revenues by 
about $39 million over the 2002-2011 period. The bill would 
increase the personal-duty exemption for persons entering the 
United States from $400 to $800. This provision would increase 
the amount of goods that travelers from abroad could bring in 
free of duty. Based on information from the Customs Service, 
CBO estimates that this provision would decrease revenues by 
about $3 million in 2002 and by $4 million in each year 
thereafter.
    S. 1209 also would require that persons who prepared, 
stored, handled, or distributed certain fish and shellfish 
products labeled such products with the country of origin. 
Persons who failed to comply with the labeling requirements 
would be subject to civil penalties, which are deposited in the 
general fund and counted as revenues. Based on information from 
the Department of Agriculture, CBO estimates that revenues from 
such penalties would increase by less than $500,000 a year.
    The bill also would require the Secretary of the Department 
of Agriculture to identify imports of articles that circumvent 
tariff-rate quotas (TRQs) on sugars, syrups, or sugar-
containing products. A report would be provided to the 
President detailing the articles found to be circumventing such 
TRQs, which would be used to include such articles in the 
appropriate TRQ provisions of the Harmonized Tariff Schedule of 
the United States. Based on information from the Department of 
Agriculture, the International Trade Commission, and other 
trade sources, CBO expects that certain sugar-containing 
products would be included under the TRQ. There would 
consequently be fewer imports of such articles. CBO estimates 
that the revenue loss from the reduction in imports would be 
less than $500,000 a year.
            Spending subject to appropriation
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing the bill would cost about $3 
billion over the 2002-2006 period. (About $2.8 billion of this 
total would be for spending by the Customs Service.) For this 
estimate, CBO assumes that the amounts authorized by the bill 
will be appropriated near the start of each fiscal hear and 
that outlays generally will follow historical spending rates 
for the authorized activities or for similar programs.
    TAA for Firms.--Title II would authorize the appropriation 
of $16 million each year over the 2002-2006 period for the 
Secretary of Commerce to provide trade adjustment assistance to 
firms. Based on information from the Department of Commerce, 
CBO estimates that implementing this provision would cost $43 
million over the five-year period and $76 million over the 
2002-2010 period, assuming the appropriation of the necessary 
amounts.
    TAA for Communities.--Title III would establish the Office 
of Community Trade Adjustment to coordinate federal agencies 
that provide assistance to communities with high unemployment 
rates and would provide grants for economic initiatives to 
create and retain jobs in such communities. Based on 
information from the Economic Development Administration, CBO 
estimates that title III would cost $25 million over the 2002-
2006 period and $45 million over the 2002-2010 period, assuming 
the appropriation of the necessary amounts.
    Customs Service and Trade Agency Reauthorization.--Title IX 
would authorize appropriations for 2002 and 2003 for the U.S. 
Customs Service, the Office of the U.S. Trade Representative, 
and the International Trade Commission. The authorizations for 
the Customs Service would include funds for salaries and 
expenses, its Automated Commercial Environment computer system, 
air and marine interdiction, reestablishment of Customs 
operations in New York City, and a program to prevent child 
pornography.
    Because an appropriation for fiscal year 2002 for the 
Customs Service has already been enacted, CBO assumes that 
implementing title IX would authorize spending of only an 
additional $107 million in that year. CBO estimates that 
implementing title IX would cost about $2.9 billion over the 
2002-2006 period, assuming appropriation of the authorized and 
estimated amounts.
    Based on information from the Customs Service, CBO 
estimates that title IX of the bill would cost roughly $100 
million over the 2002-2004 period to reestablish its operations 
in New York City. The agency's main facility in lower 
Manhattan, which housed 800 employees and contained several 
laboratories, was destroyed by the terrorist attacks on 
September 11, 2001. Funds would be used mostly to equip new 
office space for Customs Service employees and to replace the 
materials testing and crime investigation laboratories that 
were destroyed.
    Small Business Administration.--S. 1209 would authorize the 
Small Business Administration (SBA) to establish a pilot 
program to train workers adversely affected by foreign trade to 
become self-employed. Based on information from SBA about the 
costs of existing training programs, CBO estimates that 
implementing this new program would cost less than $500,000 a 
year during the three-year life of the program, subject to the 
availability of appropriated funds.
    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. Such 
procedures would apply to S. 1209. The changes in outlays and 
revenues that would be subject to pay-as-you-go procedures are 
shown in the following table. For the purposes of pay-as-you-go 
procedures, only the effects through 2006 are counted.

----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                 -------------------------------------------------------------------------------
                                   2002    2003    2004    2005    2006    2007    2008    2009    2010    2011
----------------------------------------------------------------------------------------------------------------
Changes in outlays..............     132     600     858     937     992     963     973     998   1,038   1,075
Changes in receipts.............      -3      -4      -4      -4      -4      -4      -4      -4      -4      -4
----------------------------------------------------------------------------------------------------------------

            Estimated impact on State, local, and tribal governments
    S. 1209 contains three intergovernmental mandates as 
defined by UMRA, but CBO estimates that the cost of complying 
with those mandates would be unlikely to exceed the threshold 
specified by UMRA ($58 million in 2002, adjusted annually for 
inflation). Two of the three mandates would impose no costs on 
state or local governments; CBO cannot estimate the costs of 
the third mandate, but we expect that any such costs are not 
likely to exceed the UMRA threshold over the next five years.
            Intergovernmental mandates
    Section 231 would require states that do not have voluntary 
agreements with the DOL to administer the federally funded TAA 
program to make sure that workers are informed of their 
potential eligibility for benefits and given instructions on 
how to apply for assistance. This requirement would be an 
intergovernmental mandate as defined in UMRA. However, all 
states currently administer the TAA program under voluntary 
agreements, and it is likely that they would continue to do so. 
Consequently, there would be no budgetary impact on states as a 
result of this intergovernmental mandate.
    Section 601 would prohibit state and local governments from 
considering COBRA premium assistance when determining an 
individual's eligibility for public benefits. This prohibition 
would be a preemption and an intergovernmental mandate as 
defined in UMRA. However, since the premium assistance would be 
a new benefit for individuals and the base use by governments 
to determine eligibility for benefits would remain constant, 
the mandate would impose no additional costs on state or local 
governments.
    Finally, Section 931 would preempt local authority by 
authorizing the Commissioner of Customs to temporarily close 
U.S. ports of entry under certain circumstances. Since some 
port authorities are owned and operated by local government 
entities, such a preemption would be an intergovernmental 
mandate as defined in UMRA. CBO cannot determine the costs of 
this mandate, however, because we cannot predict either the 
likelihood of such closures or the magnitude of losses to any 
affected local government entities.
            Other impacts
    The bill also would make two options available to states in 
their Medicaid program. First, they could offer Medicaid 
coverage to uninsured individuals (and their families) who are 
eligible for TAA but who are not eligible for COBRA assistance 
or Medicaid under existing rules. This coverage could be 
provided for up to 12 months, and states providing this 
optional coverage would be eligible for an enhanced federal 
match of about 70 percent. CBO estimates that increased state 
spending as a result of this option would total $118 million 
over the 2002-2006 period. Secondly, for individuals who are 
eligible for the 75 percent COBRA premium assistance from the 
federal government, states would be able to cover the remaining 
25 percent of premiums through Medicaid if the individual's 
family income was below 200 percent of the poverty line. This 
optional coverage also would be available for up to 12 months. 
CBO estimates that increased state spending as a result of this 
option would total $24 million over the 2002-2006 period.
    Finally, the bill would authorize grants to certain 
communities with high unemployment rates. Grants would be 
awarded for developing strategic plans or for implementing 
parts of those plans designed to spur job growth and business 
activity. CBO estimates that $30 million would be available for 
such grants over the 2002-2006 period.
            Estimated impact on the private sector
    S. 1209 would impose several private-sector mandates, as 
defined by UMRA, on certain employers providing health 
insurance coverage for their employees, transportation firms 
seeking approval from the U.S. Customs Service for entry into 
the United States or for clearance to proceed from a port or 
place in the United States, retailers selling certain fish, 
fresh fruit, and vegetables, and importers of sugar and other 
sugar containing products. CBO estimates that each of the 
mandates relating to health insurance and to U.S. Customs 
Service manifests would not involve costs that exceed the $115 
million threshold (for 2002) established by UMRA. In contrast, 
the mandate related to country-of-origin labeling for certain 
fish, fresh fruit, and vegetables has estimated costs exceeding 
the threshold. Finally, CBO cannot determine the direct costs 
of the mandate affecting the import of certain sugar and sugar-
containing products.
            Premium assistance for COBRA continuation coverage
    Under current law, the Consolidated Omnibus Budget 
Reconciliation Act of 1985 imposes a mandate on private-sector 
employers by requiring them to continue to provide health 
insurance coverage to certain workers who are separated from 
employment. Although separated workers who elect to continue 
their coverage can be required to pay the employer 102 percent 
of the average cost of the insurance to obtain such coverage, 
research suggests that the actual cost of providing that 
coverage generally is greater than 102 percent. By increasing 
the number of separated workers who elect to continue their 
COBRA coverage, the provision of subsidies in title VI of S. 
1209 would effectively increase the cost of the existing 
mandate on employers to provide continued coverage. Although 
CBO expects that the average cost of employees who are induced 
to take COBRA coverage because of the subsidies would be less 
than the cost of those who accept unsubsidized COBRA coverage 
under current law, there is still likely to be some added cost 
to employers. CBO estimates the direct cost of this provision 
would be small because few workers would participate.
            U.S. Customs manifest requirements
    Section 932 would require trucks, buses, and trains 
required to make entry or obtain clearance under the U.S. 
customs laws to provide by electronic transmission cargo 
manifest information in advance of such entry or clearance. The 
bill also would require trucks, buses, and trains with 
passengers arriving or departing the United States that must 
make entry or obtain clearance under the U.S. custom laws to 
provide by electronic transmission certain passenger and crew 
manifest information in advance of such entry or clearance. The 
costs for trucks, buses, and trains to provide the information 
when arriving or departing the United States would depend on 
regulations to be prescribed by the Secretary of the Treasury. 
According to representatives of the transportation industry, 
the cost to implement an advanced electronic manifest system 
for such land carriers could be about $45 million for the first 
year, mostly in start-up costs. The cost for such a system in 
the following years would drop to about $15 million annually.
            Country-of-origin labeling requirements
    Section 1001 would require retailers to inform consumers, 
at the final point of sale, of the country of origin of certain 
fish, fresh fruits, and vegetables. Suppliers of those 
commodities would be required to provide the same information 
to retailers. The major costs associated with the new country-
of-origin labeling requirements are related to the cost to 
segregate and preserve commodity identity, to label the 
commodity, and to maintain records.
    The incremental cost of this mandate is uncertain. Although 
rare, some grocers and farmers voluntarily use labels to 
identify U.S. products. Also, data to estimate all of the 
compliance costs are not available. Moreover, compliance costs 
depend on the specific standards to be established by the 
Secretary of Agriculture. According to information from a 
representative for retailers of fresh fruit and vegetables, CBO 
estimates that labeling those commodities could cost $200 
million annually.
            Tariff-rate quota requirements
    Section 1002 would require the President to include any 
article circumventing the tariff-rate quotas on sugar and other 
sugar-containing products in the appropriate provision of the 
Harmonized Trade Schedule of the United States (HTS) based on 
reports to be provided by the Secretary of Agriculture. The 
inclusion of any such articles could be a new mandate on 
certain importers. However, because of the uncertainty 
regarding the findings of future reports, the timing of 
potential changes made by the President of the HTS, and the 
magnitude of the changes, CBO has no basis for estimating the 
direct cost of this provision on the private sector.
    Estimate prepared by: Federal spending: TAA for Workers--
Christina Hawley Sadoti and Todd Anderson; TAA for Farmers and 
Department of Agriculture--Dave Hull; TAA for Fishermen--Ken 
Johnson; TAA for Communities and Firms--Lanette Walker; COBRA 
Premiums and Medicaid--Tom Bradley, Jeanne De Sa, and Eric 
Rollins; Customs Service and Trade Agencies: Mark Grabowicz.
    Revenues: Erin Whitaker.
    Impact on State, local, and tribal governments: Leo Lex and 
Elyse Goldman.
    Impact on the private sector: Ralph Smith and Paige Piper/
Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                VII. REGULATORY IMPACT AND OTHER MATTERS

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact of the reported bill.
    The bill makes a wide range of amendments improving and 
expanding the trade adjustment assistance program. Overall, the 
bill will result in increases in regulatory burdens in some 
areas and decreases in others. While the net regulatory impact 
of all the amendments is difficult to estimate precisely 
because of the number and type of changes made in the program, 
the bill reduces or minimizes regulatory burdens wherever 
possible.
    Responsibility for implementing the trade adjustment 
assistance program falls principally on the Federal Government, 
but regulatory burdens are also imposed on the States and, to a 
lesser extent, on municipalities and businesses. The major 
changes and shifts in regulatory impacts associated with each 
of these sectors are reviewed in the following discussion.
    States.--States play a critical role in implementing the 
trade adjustment assistance program. Under existing law, States 
are responsible for making preliminary certification rulings 
with respect to NAFTA-TAA petitions and transmitting those 
petitions to the Secretary of Labor; providing rapid response 
services and outreach to affected workers; processing 
individual worker applications; referring workers to training; 
administering payment of training costs; and issuing trade 
adjustment allowance payments.
    The reported bill will reduce the regulatory burden on 
States in several respects. First, Governors will no longer be 
required to make preliminary eligibility determinations or to 
transmit NAFTA-TAA petitions to the Secretary of Labor. Second, 
rather than administering two different TAA programs for 
workers, each with different deadlines and eligibility 
criteria, States will administer a single, unified program. 
Third, the bill facilitates the delivery of TAA benefits by 
States through existing WIA infrastructure.
    The reported bill will increase the regulatory burden on 
States in several respects. First, States will be required to 
provide certain data and reports concerning TAA program 
operations to the Department of Labor. Although these 
requirements will impose a regulatory and paperwork burden on 
the States, however, the purpose of the requirements is to 
enhance overall program efficiency and accountability by 
creating a mechanism for tracking program outcomes. This will 
ultimately benefit the States through better resource 
allocation. Second, States will be permitted, but not required, 
to administer the COBRA premium assistance program and to offer 
the temporary Medicaid coverage provided for in title VI. 
Third, in order for a Community Economic Development 
Coordinating Committee to meet the representativeness 
requirements of new section 274(b)(1) of chapter 4 of title II 
of the Trade Act of 1974, it must include representatives of 
the State Government. However, although formation of a 
Community Economic Development Coordinating Committee is 
required for participation in the trade adjustment assistance 
for communities program, no community is required to 
participate in the program.
    Several significant changes made by the reported bill will 
have no regulatory impact on the States. In particular, there 
will not be any significant additional regulatory impact on 
States from the establishment of trade adjustment assistance 
programs for farmers, ranchers, and fishermen or from the 
amendments concerning Customs authorization, country of origin 
labeling, and sugar policy.
    Municipalities.--The only significant regulatory impact of 
the bill on municipalities will be the requirement in new 
section 274(b)(1) of chapter 4 of title II of the Trade Act of 
1974, which requires each Community Economic Development 
Coordinating Committee to include representatives of local and 
regional governments. Although formation of a Community 
Economic Development Coordinating Committee is required for 
participation in the trade adjustment assistance for 
communities program, no community is required to participate in 
the program.
    Businesses.--The reported bill will increase the regulatory 
burden and impose certain additional paperwork requirements on 
businesses which are currently required by law to provide COBRA 
continuation health insurance coverage for their employees and 
on providers of group health plans. Such entities will be 
required to provide certain additional notifications to COBRA-
eligible employees and to accept and account for certain 
payments. However, CBO estimates the direct cost to businesses 
of these requirements to be small.
    The country-of-origin labeling provisions in section 1001 
of the reported bill will impose new regulatory burdens on 
retailers of certain fish, fresh fruits, and vegetables, who 
will be required to segregate and preserve commodity identity, 
label commodities at the point of sale, and maintain records. 
The actual cost of compliance to retailers will depend upon 
regulations adopted by the Secretary of Agriculture. Similarly, 
the sugar policy provisions in section 1002 may result in the 
inclusion of new articles in tariff-rate quotas, with a 
potential regulatory burden on importers which cannot be 
predicted at this time.
    In addition, the Customs authorization title of the 
reported bill will impose additional regulatory burdens on 
certain land, air, or vessel carriers in connection with 
antiterrorism provisions. Specifically, these provisions 
require trucks, buses and trains required to make entry or 
obtain clearance under U.S. customs laws to provide by 
electronic transmission cargo manifest information in advance 
of any entry or clearance. The provisions also require land, 
air, or vessel carriers with passengers arriving or departing 
the United States to provide by electronic transmission certain 
passenger and crew manifest information in advance of arriving 
or departing the United States
    Personal Privacy.--With the following exception, the 
reported bill does not affect the personal privacy of 
individuals: The Customs authorization title includes 
provisions which may affect the personal privacy of 
individuals. Specifically, the title provides Customs with new 
authority under certain circumstances to search outbound mail.
    Intergovernmental Mandates.--The following information is 
provided in accordance with section 423 of the Unfunded 
Mandates Reform Act of 1995 (Pub. L. No. 104-4). The Committee 
has reviewed the provisions of S. 1209 as approved by the 
Committee on December 4, 2001. In accordance with the 
requirements of Pub. L. No. 104-04, the Committee has 
determined that the bill contains several intergovernmental 
mandates, as defined in the UMRA. Two would not affect the 
budgets of State, local, or tribal governments. First, the 
requirement that states that do not have voluntary agreements 
with the Department of Labor to administer the federally funded 
TAA program meet certain notification requirements with respect 
to potentially eligible workers is not likely to have any 
budgetary impact on States because all States currently 
administer the TAA program under voluntary agreements and are 
likely to continue to do so. Second, the prohibition on State 
and local governments from considering COBRA premium assistance 
when determining an individual's eligibility for public 
benefits is not likely to have any budgetary impact on States 
because it would not change the base used by governments to 
determine eligibility for benefits. The third intergovernmental 
mandate involves the preemption of local authority by 
authorizing the Commissioner of Customs under certain 
circumstances to temporarily close U.S. ports of entry, some of 
which are owned and operated by local government entities. 
Because the likelihood of such closures cannot be predicted, 
there is no way to estimate the extent to which this provision 
could result in budgetary costs to any local government.

                  VIII. MINORITY AND ADDITIONAL VIEWS

 MINORITY VIEWS OF SENATORS GRASSLEY, HATCH, MURKOWSKI, LOTT, NICKLES, 
                        THOMPSON, KYL AND THOMAS

    We reluctantly oppose S. 1209 in its current form. Our 
opposition is based upon substantive concerns with the bill and 
procedural irregularities which occurred during consideration 
of the bill before the Senate Finance Committee.
    This is highly regrettable. Trade Adjustment Assistance has 
long enjoyed strong bipartisan support in the Finance 
Committee. Unfortunately, this bill is a notable departure from 
our history of bipartisanship in this area. We hope that the 
bill will be improved as it proceeds through the legislative 
process.

                          substantive concerns

    There are significant substantive concerns with the 
Majority report and the bill. First, we disagree with the 
premise in the Majority report that globalization has resulted 
in downward wage pressure in the United States. In fact, a 
short report by the non-partisan Congressional Research Service 
recently concluded that ``there is likely little causality 
running from a rising level of trade to poor domestic wage 
performance. Slow average wage growth is fully and credibly 
linked to poor productivity growth. A small share of rising 
wage inequality can be linked to trade, but the great bulk of 
this trend is probably more soundly rooted in a rising relative 
demand for skill, growing out of a changed pattern of 
technological change.'' Craig K. Elwell, Is Globalization the 
Force Behind Poor U.S. Wage Performance?: An Analysis, 
Congressional Research Service Short Report for Congress, 
Updated January 12, 2001.
    Second, we believe that international trade has proved to 
be a positive force in our economy. One in ten Americans work 
at jobs that depend on the export of goods and services. 
Exports drive more than one-fourth of our economic growth. 
International trade enhances the quality of life for the vast 
majority of Americans. Conversely, restrictions on imports are 
like taxes. They raise the cost of everyday products like food, 
clothing, and electronic goods. Because of past trade 
agreements such as the North American Free Trade Agreement and 
the Uruguay Round, the typical American family of four realizes 
benefits of roughly $1,300 to $2,000 annually. We want to 
ensure that the American people continue to reap these 
benefits. That is why we strongly support renewing Trade 
Promotion Authority for the President at the earliest possible 
time.
    However, we understand that growth from trade creates 
change in an economy, and change results in the dislocation of 
some workers. We concur that the U.S. Government can play a 
productive role in ensuring that workers who are displaced 
receive the training they need to re-enter the workforce as 
quickly as possible. That is why we support Trade Adjustment 
Assistance. Still, there are some significant problems with S. 
1029 as currently written which need to be addressed. A summary 
of our concerns follows.

                           secondary workers

    The current bill covers secondary workers in supplier or 
downstream firms that provide goods and services to a firm 
certified as eligible for Trade Adjustment Assistance. We are 
concerned with this provision for a number of reasons. First, 
it is not clear that there is a need to expand Trade Adjustment 
Assistance to secondary workers. Most secondary workers are 
already covered under the Workforce Investment Act. Second, we 
are concerned that including secondary workers in upstream and 
downstream industries with no limitations will make the program 
too costly and very difficult to administer. For example, the 
current bill requires the Department of Labor to certify 
whether primary and secondary workers are eligible for Trade 
Adjustment Assistance within 40 days, as opposed to 60 days 
under current law. Thus, the current bill not only reduces the 
time available for certifying primary workers, but it also 
vastly expands the pool of workers to be certified within that 
time frame. It is not at all clear that the Department of Labor 
can effectively administer these provisions without a 
substantial increase in its budget.
    We would urge our Democratic colleagues to carefully 
consider limitations upon who can qualify as a secondary worker 
for purposes of Trade Adjustment Assistance benefits. We would 
also suggest that there may be a need to differentiate between 
primary and secondary workers for purposes of petition review.

               consolidation of eligibility requirements

    The current bill consolidates the eligibility requirements 
of the current Trade Adjustment Assistance program and NAFTA 
Trade Adjustment Assistance but drops the current law 
requirement that a firm also experience a decrease in sales or 
production to be eligible for Trade Adjustment Assistance.
    Dropping the requirement that a firm also experience a 
decrease in sales or production could result in certification 
of workers whose firm is thriving but laying off workers due to 
technological change or other reasons. Furthermore, eliminating 
the link between job loss and decrease in sales or production 
will make it more difficult to demonstrate that the workers are 
dislocated due to imports.

                     training requirements waivers

    S. 1209 changes current law to create 11 conditions under 
which training requirements may be waived. While we support 
reducing the number of conditions under which waivers can be 
granted, there is concern that some of the categories of 
waivers in the bill are overly broad anddifficult to define.

                          Supportive Services

    The current bill grants states the authority to apply for 
and receive National Emergency Grant funding to cover the costs 
of supportive services, including transportation, childcare, 
and dependent care. We believe it is inefficient and 
impractical to use National Emergency Grants to provide 
supportive services in this context. Instead of requiring a 
separate application process with a separate funding source we 
believe it would be more efficient to have dislocated workers 
dually enrolled in the Workforce Investment Act dislocated 
worker program. This would give workers access to the full 
array of Workforce Investment Act transition services at no 
additional cost.

              Performance Evaluation and Unfunded Mandates

    We strongly support establishing a system to evaluate the 
performance of the Trade Adjustment Assistance program. 
However, we believe that the performance criteria in S. 1209 
emphasizes process over results and includes subjective 
measures of performance which are difficult to define and 
evaluate. We are also concerned that the performance evaluation 
requirements in the current bill could create an unfunded 
mandate on states by requiring a tremendous increase in data 
infrastructure at the state level. We believe that requiring 
states to design and implement a new wage insurance program 
without providing additional resources for them to do so is 
also an unfunded mandate.

 Health Insurance Coverage Options for Individuals Eligible for Trade 
                         Adjustment Assistance

    We believe the health insurance mechanisms in S. 1209 that 
require the creation of new federal entitlement programs and 
the expansion of others, are inappropriate. Trade Adjustment 
Assistance has never provided health insurance assistance, 
temporary or otherwise, to eligible. workers, and we cannot 
support doing so now.
    S. 1209's health insurance coverage options are permanent. 
The bill's subsidy program forces those eligible for COBRA 
coverage to keep it, even though those policies are inflexible 
and typically more expensive than others in the market. 
According to one recent study, families pay about $7,200 for 
COBRA coverage each year. See Commonwealth Fund, How the 
Slowing U.S. Economy Threatens Employer-Based Health Insurance, 
November 2001. According to the non-partisan Congressional 
Research Service, the cost of an average policy in the 
individual market is about $2,400 per year. We believe creating 
a new federal entitlement program that subsidizes only the 
marketplace's most expensive, least efficient insurance product 
is unacceptable.
    For those workers no eligible for COBRA (and only 57 
percent of non-elderly workers were potentially eligible for 
COBRA in 1999 according to a recent, see Urban Institute, Could 
Subsidizing COBRA Health Insurance Coverage Help Most Low-
Income Unemployed?, October 2001), the bill gives states the 
right to open up their Medicaid programs to cover these 
workers. Medicaid programs are already under severe financial 
pressure, and we believe states are not likely to take on the 
additional costs. Further, since each state legislature would 
have to act to amend its state Medicaid plan, delays would be 
substantial, and would leave workers with gaps in their 
coverage. We believe expanding this already unstable 
entitlement program for eligible workers is also not 
acceptable.
    We believe it would be a serious mistake to set a new 
standard for providing health insurance coverage under Trade 
Adjustment Assistance. We especially oppose any approach that 
gives workers and their families as single ``take it or leave 
it'' option of purchasing COBRA or enrolling in Medicaid when 
more affordable policies exist.

              Trade Adjustment Assistance for Communities

    The current bill authorizes a new program to be 
administered by the Department of Commerce which would provide 
assistance to trade-affected communities. This is achieved by 
creating a new Office of Community Trade Adjustment within the 
Economic Development Administration. We believe that creating 
such an office duplicates DEA's long-standing Office of 
Economic Adjustment Assistance and is therefore unnecessary and 
inefficient.
    Harmonization of the NAFTA Trade Adjustment Assistance 
program and the Trade Adjustment Assistance program is a goal 
which we support. We also support enhancing and improving the 
current program. However, as outlined above, the proposal which 
passed the Committee takes the process in the wrong direction 
and is too costly. The Congressional Budget Office estimated 
that S. 1209 would result in total direct spending of $12.4 
billion over the 2002-2011 period, an increase of $8.6 billion 
more than the existing program over that same time period.
    We remain open to working with our Democratic colleagues to 
improve the current bill in the hopes that we can develop a 
bipartisan product which will not only be more effective and 
efficient, but which we can all support.

                       Procedural Irregularities

    We are also concerned about a number of procedural 
irregularities which occurred during consideration of the bill. 
Due to time constraints, there were several amendments pending 
during consideration of the bill which were neither open to 
debate or were Senators allowed to request a roll call vote. We 
believe that it is important for all Senators to have an 
opportunity to be heard and for every Senator to have an 
opportunity to request a rollcall vote on their amendment. We 
hope to preserve these rights during consideration of future 
legislation in the Finance Committee.
    In addition, it is not at all clear that consideration of 
the bill was concluded within the time frame allotted to the 
Committee. We understand that the 2-hour rule was invoked 
during consideration of this bill. The 2-hour rule, if 
specifically invoked by a member, stipulates that no committee 
can meet for longer and two hours once the Senate is in 
session. While there were attempts to complete Committee 
consideration of the bill within two hours, there is some 
question as to whether these attempts were successful.

                                   Charles E. Grassley.
                                   Frank H. Murkowski.
                                   Trent Lott.
                                   Jon Kyl.
                                   Orrin G. Hatch.
                                   Don Nickles.
                                   Fred Thompson.
                                   Craig Thomas.

                  ADDITIONAL VIEWS OF SENATOR GRASSLEY

                           customs user fees

    I am pleased that the Chairman included my amendment 
expressing the Sense of the Senate that Customs User Fees 
should be used only for Customs purposes. However, the 
underlying bill disregards the amendment as I understand that 
the Chairman intends to reauthorize the collection of Customs 
User Fees to pay for the expanded Trade Adjustment Assistance 
program which is clearly not for Customs purposes. I am 
concerned about this approach for a number of reasons. First, 
this is a continuation of a trend we have seen this year. 
Customs User Fees have already been used as an offset for an 
unrelated program, S. 1052, the ``Bipartisan Patients 
Protection Act.''
    Second, I have substantive concerns with this approach. 
When Congress first authorized customs fees the avowed purpose 
was to underwrite the costs of Customs commercial operations. I 
believe that if fees are to be extended they should be 
reauthorized for Customs purposes. And I am not alone in this 
view. The National Association of Foreign Trade Zones writes:
    ``[We] recently learned that the Trade Adjustment 
Assistance Bill * * * includes language that would provide for 
extension of the Merchandise Processing Fee to offset the cost 
of the TAA program. As you are aware, the fee was originally 
established by Congress to offset the cost of the commercial 
operations of the U.S. Customs Service. The [National 
Association of Foreign Trade Zones] is strongly opposed to any 
extension or reauthorization of the [Merchandise Process Fee] 
that would divert the funds from their congressionally intended 
purpose.''
    And the National Association of Foreign Trade Zones is not 
alone. The National Customs Brokers & Forwarders Association of 
America writes:
    ``[We are] aware of pending legislation due for 
consideration regarding Trade Adjustment Assistance. While [we] 
support TAA, we cannot support the use of user fees to `pay 
for' this program. Merchandise processing fees need to be 
directed to the agency for which they were collected--the U.S. 
Customs Service.''
    I am afraid that many Senators are under the mistaken 
impression that extending these fees is simply keeping a 
convenient money stream flowing. That is not so.
    The Customs User Fee structure includes what those fees are 
spent on. By extending fees for additional years, Congress is 
also extending those spending priorities for those years. If we 
keep extending the fees as a way to pay for unrelated 
activities, we extend the whole way the fee money is spent 
which by law is on commercial activities.
    In fact, the Customs Service stated in a memorandum I 
received on June 20, 2001 that using Customs User Fees as an 
offset could harm its ability to offset Customs activities.
    The Customs Service is currently reviewing ways to 
restructure Customs User Fees which are set to expire in 2003. 
If we extend the fees in this bill, and that extension becomes 
law, we may never have an opportunity to effectively 
restructure these fees. I believe we should give the Customs 
Service the opportunity to review these fees, and not preempt 
their efforts by extending the fees before the review is 
complete.

                        customs reauthorization

    I am pleased that S. 1209 includes Senator Kyl's amendment 
reauthorizing appropriations for the U.S. Customs Service and 
for the Office of the United States Trade Representative. The 
Kyl amendment is exactly like H.R. 3129, the Customs Border 
Security Act of 2001, except that two sections of that bill on 
Customs pay reform and immunity are not included.
    The amendment authorizes the U.S. Customs Service, 
International Trade Commission, and Office of the U.S. Trade 
Representative. It includes numerous provisions and funding 
authorizations to fight terrorism and illegal drug trafficking. 
The Administration has also requested that Customs be able to 
search outgoing mail since U.S. mail is sometimes used to 
transmit laundered money out of the country. The amendment 
allows Customs, when appropriate, to search outbound mail to 
help stop terrorism and illegal drug trafficking. The amendment 
addresses privacy issues--no letter may be read by Customs 
officers unless a valid warrant is obtained. The amendment will 
get new, better equipment and increased personnel to Customs 
for its air and sea interdiction programs ($360 million total 
over two years), and for its U.S.-Mexico border operations ($90 
million).
    The amendment includes a provision to require advanced 
electronic manifesting on passengers and cargo, so that the 
Customs Service will have important information in advance on 
passengers and cargo.
    The amendment will also authorize funding to reestablish 
the New York Customs offices destroyed on September 11.
    The amendment authorizes funding for Customs' new 
automation system, the Automated Commercial Environment. In 
1998, Customs processed 19.7 million commercial entries. This 
volume is expected to double by 2005. The current automation 
system is on the brink of continual brownouts and possible shut 
downs. If this happens, it will cost American taxpayers 
millions of dollars.
    I am pleased that the Chairman recognizes the critical 
importance of authorizing appropriations for the Customs 
Service. Including Customs authorization in this bill will help 
us track down terrorists, fight illegal drug trafficking, and 
strengthen our economy by facilitating cross-border trade.

 health insurance coverage options for individuals eligible for trade 
                         adjustment assistance

    While I support a limited program to provide temporary 
health insurance assistance to individuals eligible for Trade 
Adjustment Assistance, I believe the mechanisms in S. 1209, 
which require the creation of new federal entitlement programs 
and the expansion of others, are inappropriate. I believe that 
any federal relief provisions in this area should be targeted, 
time-limited and should provide maximum flexibility for 
workers. More specifically, I believe it is important to ensure 
that those eligible for temporary health insurance assistance 
under S. 1209 have the option of using that assistance to 
purchase health insurance products in the individual market 
that best suits their needs.

                                                    Chuck Grassley.

                 ADDITIONAL VIEWS OF SENATOR MURKOWSKI

    I join Senator Grassley in expressing my disappointment 
with S. 1209 which, in its current form, I believe represents a 
lost opportunity to enact meaningful and much-need legislation. 
While there is much in S. 1209 which I find an objectionable 
exercise in partisan politics, I believe there are many aspects 
of S. 1209 on which Republicans and Democrats can agree.
    Unfortunately, despite the glimmer of compromise on the 
margins of S. 1209, the bill is fatally flawed by a partisan 
and unsupportable premise: that trade is itself a problem which 
somehow requires correction.
    The United States economy is founded on the principles of 
the market. When you are more successful than your competitor 
across the street, your competitor either adjusts or is forced 
to engage in more productive economic activity. That is the 
reality of a market economy.
    Absent artificial barriers, the same forces which operate 
in the domestic market apply internationally. That your 
competitor is across the planet, and not just the street, 
should not substantially alter the equation.
    One of the functions of good government is to ease the 
transitions of those affected by competition into more 
productive endeavors. The Workforce Investment Act (WIA) is one 
means by which government plays a role in helping Americans 
navigate the ups and downs of a competitive economy. Assistance 
to those seeking workplace training; access to consultative and 
marketing resources for troubled firms; and help for those 
directly and indirectly affected by the harsh realities of 
competition are wholly appropriate.
    Applying different standards to those affected by 
international and domestic competition is not only arbitrary, 
it also perpetuates the myth that international trade requires 
special government intervention. Trade--or globalization--is 
not a special problem. Globalization is a natural extension of 
the American economic system beyond the domestic market.
    Workforce training and other programs embodied by TAA and 
the WIA are needed to mitigate the effects on individuals and 
firms of the natural competitive pressures of the marketplace, 
not because globalization creates special downward pressure on 
domestic wages. In this respect, S. 1209 misses the mark and 
misses a golden opportunity.
    Had the Chairman sought a more collaborative and bipartisan 
process in pursuit of passage of S. 1209, the Finance Committee 
might have undertaken a more comprehensive approach to Trade 
Adjustment Assistance, one which sought to rationalize the 
approach taken in earlier TAA programs with that taken in 
legislation such as the WIA.
    Regardless of the fate of S. 1209, I would hope that the 
Finance Committee can come together to produce a more rational 
policy the primary effect of which is not to demonize trade as 
an instrument of economic decline. If our aim is to optimize 
the allocation of economic resources while minimizing the human 
costs of the American economic system, we can do much better 
than S. 1209.

                                                Frank H. Murkowski.

       IX. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    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

           *       *       *       *       *       *       *


                            TABLE OF CONTENTS

     * * * * * * *

        TITLE II--RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION

     Chapter 1--Positive Adjustment by Industries Injured by Imports

Sec. 201. Action to facilitate positive adjustment to import 
          competition.
Sec. 202. Investigations, determinations, and recommendations by 
          Commission.
Sec. 203. Action by President after determination of import injury.
Sec. 204. Monitoring, modifications, and termination of action.

              [Chapter 2--Adjustment Assistance for Workers

               [Subchapter A--Petitions and Determinations

[Sec. 221. Petitions.
[Sec. 222. Group eligibility requirements.
[Sec. 223. Determination by Secretary of Labor.
[Sec. 224. Study by Secretary of Labor when International Trade 
          Commission begins investigations.
[Sec. 225. Benefit information to workers.

                     [Subchapter B--Program Benefits

                 [Part I--Trade Readjustment Allowances

[Sec. 231. Qualifying requirements for workers.
[Sec. 232. Weekly amounts.
[Sec. 233. Limitations on trade readjustment allowances.
[Sec. 234. Application of State laws.

      [Part II--Training, Other Employment Services And Allowances

[Sec. 235. Employment services.
[Sec. 236. Training.
[Sec. 237. Job search allowances.
[Sec. 238. Relocation allowances.

                    [Subchapter C--General Provisions

[Sec. 239. Agreements with States.
[Sec. 240. Administration absent State agreement.
[Sec. 241. Payments to States.
[Sec. 242. Liabilities of certifying and disbursing officers.
[Sec. 243. Fraud and recovery of overpayments.
[Sec. 244. Penalties.
[Sec. 245. Authorization of appropriations.
[Sec. 246. Supplemental wage allowances demonstration projects.
[Sec. 247. Definitions.
[Sec. 248. Regulations.
[Sec. 249. Subpoena power.
[Sec. 249A. Nonduplication of assistance.

     [Subchapter D--NAFTA Transitional Adjustment Assistance Program

[Sec. 250. Establishment of transitional program.

               [Chapter 3--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--Adjustment Assistance for Communities

[Sec. 271. Petitions and determinations.
[Sec. 272. Trade impacted area councils.
[Sec. 273. Program benefits.
[Sec. 274. Community adjustment assistance fund and authorization of 
          appropriations.]

              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.

                      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. 241. Job search allowances.
Sec. 242. Relocation allowances.
Sec. 243. Supportive services; wage insurance.

            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 Administrations; 
          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.

                   Chapter 5--Miscellaneous Provisions

Sec. 280. General Accounting Office report.
Sec. 281. Coordination.
Sec. 282. Trade monitoring system.
Sec. 283. Firms relocating in foreign countries.
Sec. 284. Judicial review.
Sec. 285. Termination.
[Sec. 286. Trade Adjustment Trust Fund.]
[Sec. 287. Imposition of additional fee.]

              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 
          in  vestigation.
Sec. 299D. Benefit information to producers.
Sec. 299E. Qualifying requirements for producers.
Sec. 299F. Fraud and recovery of overpayments.
Sec. 299G. Authorization of appropriations.

                TITLE NEGOTIATING AND OTHER AUTHORITY

           *       *       *       *       *       *       *


      CHAPTER 4--OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


SEC. 141. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

    (a) * * *

           *       *       *       *       *       *       *

    (g)(1)(A) There are authorized to be appropriated to the 
Office for the purposes of carrying out its functions [not to 
exceed] the following:
          [(i) $23,250,000 for fiscal year 1991.
          [(ii) $21,077,000 for fiscal year 1992.]
          (i) $30,000,000 for fiscal year 2002.
          (ii) $31,000,000 for fiscal year 2003.
    (B) Of the amounts authorized to be appropriated under 
subparagraph (A) for any fiscal year--
          (i) not to exceed $98,000 may be used for 
        entertainment and representation expenses of the 
        Office; and
          [(ii) not to exceed $2,050,000 may be used to pay the 
        United States share of the expenses of binational 
        panels and extraordinary challenge committees convened 
        pursuant to chapter 19 of the United States-Canada 
        Free-Trade Agreement; and]
          [(iii)] (ii) not to exceed $1,000,000 shall remain 
        available until expended.

           *       *       *       *       *       *       *

    (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.

           *       *       *       *       *       *       *


       TITLE II--RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION

           *       *       *       *       *       *       *


             [CHAPTER 2--ADJUSTMENT ASSISTANCE FOR WORKERS


              [Subchapter A--Petitions and Determinations


[SEC. 221. PETITIONS.

    [(a) A petition for a certification of eligibility to apply 
for adjustment assistance under this subchapter may be filed 
with the Secretary of Labor (hereinafter in this chapter 
referred to as the ``Secretary'') by a group of workers 
(including workers in any agricultural firm or subdivision of 
an agricultural firm) or by their certified or recognized union 
or other duty authorized representative. Upon receipt of the 
petition, the Secretary shall promptly publish notice in the 
Federal Register that he has received the petition and 
initiated an investigation.
    [(b) 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 persons an opportunity to be present, to 
produce evidence, and to be heard.

[SEC. 222. GROUP ELIGIBILITY REQUIREMENTS.

    [(a) The Secretary shall certify a group of workers 
(including workers in any agricultural firm or subdivision of 
an agricultural firm) as eligible to apply for adjustment 
assistance under this subchapter if he determines--
          [(1) that a significant number or proportion of the 
        workers in such workers' firm or an appropriate 
        subdivision of the firm have become totally or 
        partially separated, or are threatened to become 
        totally or partially separated,
          [(2) that sales or production, or both, of such firm 
        or subdivision have decreased absolutely, and
          [(3) that increases of imports of articles like or 
        directly competitive with articles produced by such 
        workers' firm or an appropriate subdivision thereof 
        contributed importantly to such total or partial 
        separation, or threat thereof, and to such decline in 
        sales or production.
    [(b) For purposes of subsection (a)(3)--
          [(1) The term ``contributed importantly'' means a 
        cause which is important but no necessarily more 
        important than any other cause.
          [(2)(A) 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) 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.

[SEC. 223. DETERMINATIONS BY SECRETARY OF LABOR.

    [(a) As soon as possible after the date on which a petition 
is filed under section 221, but in any event not later than 60 
days after that date, the Secretary shall determine whether the 
petitioning group meets the requirements of section 222 and 
shall issue a certification of eligibility to apply for 
assistance under this subchapter covering workers in any group 
which meets such requirements. Each certification shall specify 
the date on which the total or partial separation began or 
threatened to begin.
    [(b) A certification under this section shall not apply to 
any worker whose last total or partial separation from the firm 
or appropriate subdivision of the firm before his application 
under section 231 occurred--
          [(1) more than one year before the date of the 
        petition on which such certification was granted, or
          [(2) more than 6 months before the effective date of 
        this chapter.
    [(c) Upon reaching his determination on a petition, the 
Secretary shall promptly publish a summary of the determination 
in the Federal Register together with his reasons for making 
such determination.
    [(d) Whenever the Secretary determines, with respect to any 
certification of eligibility of the workers of a firm or 
subdivision of the firm, that total or partial separations from 
such firm or subdivision are no longer attributable to the 
conditions specified in section 222, he shall terminate such 
certification and promptly have notice of such termination 
published in the Federal Register together with his reasons for 
making such determination. Such termination shall apply only 
with respect to total or partial separations occurring after 
the termination date specified by the Secretary.

[SEC. 224. STUDY BY SECRETARY OF LABOR WHEN INTERNATIONAL TRADE 
                    COMMISSION BEGINS INVESTIGATION.

    [(a) Whenever the International Trade Commission (hereafter 
referred to in this chapter as the ``Commission'') begins an 
investigation under section 202 with respect to an industry, 
the Commission shall immediately notify the Secretary of such 
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, and
          [(2) the extent to which the adjustment of such 
        workers to the import competition may be facilitated 
        through the use of existing programs.
    [(b) The report of the Secretary of the study under 
subsection (a) shall be made to the President not later than 15 
days after the day on which the Commission makes its report 
under section 202(f). Upon making this report to the President, 
the Secretary shall also promptly make it 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. 225. BENEFIT INFORMATION TO WORKERS.

    [(a) The Secretary shall provide full information to 
workers about the benefit allowances, training, and other 
employment services available under this chapter 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 of workers to prepare petitions or applications 
for program benefits. The Secretary shall make every effort to 
insure that cooperating State agencies fully comply with the 
agreements entered into under section 239(a) and shall 
periodically review such compliance. The Secretary shall inform 
the State Board for Vocational Education or equivalent agency 
and other public or private agencies, institutions, and 
employers, as appropriate, of each certification issued under 
section 223 and of projections, if available, of the needs for 
training under section 936 as a result of such certification.
    [(b)(1) The Secretary shall provide written notice through 
the mail of the benefits available under this chapter to each 
worker whom the Secretary has reason to believe is covered by a 
certification made under subchapter A or subchapter D of this 
chapter--
          [(A) at the time such certification is made, if the 
        worker was partially or totally separated from the 
        adversely affected employment before such 
        certification, or
          [(B) at the time of the total or partial separation 
        of the worker from the adversely affected employment, 
        if subparagraph (A) does not apply.
    [(2) The Secretary shall publish notice of the benefits 
available under this chapter to workers covered by each 
certification made under subchapter A or subchapter D in 
newspapers of general circulation in the areas in which such 
workers reside.

                    [Subchapter B--Program Benefits


                 [PART I--TRADE READJUSTMENT ALLOWANCES


[SEC. 231. QUALIFYING REQUIREMENTS FOR WORKERS.

    [(a) Payment of a trade readjustment allowance shall be 
made to an adversely affected worker covered by a certification 
under subchapter A who files an application for such allowance 
for any week of unemployment which begins more than 60 days 
after the date on which the petition that resulted in such 
certification was filed under section 221, if the following 
conditions are met:
          [(1) Such worker's total or partial separation before 
        his application under this chapter occurred--
                  [(A) on or after the date, as specified in 
                the certification under which he is covered, on 
                which total or partial separation began or 
                threatened to begin in the adversely affected 
                employment,
                  [(B) before the expiration of the 2-year 
                period beginning on the date on which the 
                determination under section 223 was made, and
                  [(C) before the termination date (if any) 
                determined pursuant to section 223(d).
          [(2) Such worker had, in the 52-week period ending 
        with the week in which such total or partial separation 
        occurred, at least 26 weeks of employment at wages of 
        $30 or more a week in adversely affected employment 
        with a single firm or subdivision of a firm, or, if 
        data with respect to weeks of employment with a firm 
        are not available, equivalent amounts of employment 
        computed under regulations prescribed by the Secretary. 
        For the purposes of this paragraph, any week in which 
        such worker--
                  [(A) is on employer-authorized leave for 
                purposes of vacation, sickness, injury, 
                maternity, or inactive duty or active duty 
                military service for training.
                  [(B) 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,
                  [(C) had his employment interrupted in order 
                to serve as a full-time representative of a 
                labor organization in such firm or subdivision, 
                or
                  [(D) is on call-up for purposes of active 
                duty in a reserve status in the Armed Forces of 
                the United States, provided such active duty is 
                ``Federal service'' as defined in 5 U.S.C. 
                8521(a)(1),
        shall be treated as a week of employment at wages of 
        $30 or more, but not more than 7 weeks, in case of 
        weeks described in subparagraph (A) or (C), or both 
        (and not more than 26 weeks, in the case of weeks 
        described in subparagraph (B) or (D)), may be treated 
        as weeks of employment under this sentence.
          [(3) Such worker--
                  [(A) was entitled to (or would be entitled to 
                if he applied therefor) unemployment insurance 
                for a week within the benefit period (i) in 
                which such 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 such worker after 
                such total or partial separation;
                  [(B) has exhausted all rights to any 
                unemployment insurance to which he was entitled 
                (or would be entitled if he applied therefor); 
                and
                  [(C) does not have an unexpired waiting 
                period applicable to him for any such 
                unemployment insurance.
          [(4) Such worker, with respect to such week of 
        unemployment, would not be disqualified for extended 
        compensation payable under the Federal-State Extended 
        Unemployment Compensation Act of 1970 by reason of the 
        work acceptance and job search requirements in section 
        202(a)(3) of such Act.
          [(5) Such worker--
                  [(A) is enrolled in a training program 
                approved by the Secretary under section 236(a),
                  [(B) has, after the date on which the worker 
                became totally separated, or partially 
                separated, from the adversely affected 
                employment, completed a training program 
                approved by the Secretary under section 236(a), 
                or
                  [(C) has received a written statement 
                certified under subsection (c)(1) after the 
                date described in subparagraph (B).
    [(b)(1) If--
          [(A) the Secretary determines that--
                  [(i) the adversely affected worker--
                          [(I) has failed to begin 
                        participation in the training program 
                        the enrollment in which meets the 
                        requirement of subsection (a)(5), or
                          [(II) has ceased to participate in 
                        such training program before completing 
                        such training program, and
                  [(ii) there is no justifiable cause for such 
                failure or cessation, or
          [(B) the certification made with respect to such 
        worker under subsection (c)(1) is revoked under 
        subsection (c)(2),
no trade readjustment allowance may be paid to the adversely 
affected worker under this part for the week in which such 
failure, cessation, or revocation occurred, or any succeeding 
week, until the adversely affected worker begins or resumes 
participation in a training program approved under section 
236(a).
    [(2) The provisions of subsection (a)(5) and paragraph (1) 
shall not apply with respect to any week of unemployment which 
begins--
          [(A) after the date that is 60 days after the date on 
        which the petition that results in the certification 
        that covers the worker is filed under section 221, and
          [(B) before the first week following the week in 
        which such certification is made under subchapter (A).
    [(c)(1)(A) If the Secretary finds that it is not feasible 
or appropriate to approve a training program for a worker under 
section 236(a), the Secretary shall submit to such worker a 
written statement certifying such finding.
    [(B) If a State or State agency has an agreement with the 
Secretary under section 239 and the State or State agency finds 
that it is not feasible or appropriate to approve a training 
program for a worker pursuant to the requirements of section 
236(a), the State or State agency shall--
          [(i) submit to such worker a written statement 
        certifying such finding, and
          [(ii) submit to the Secretary a written statement 
        certifying such finding and the reasons for such 
        finding.
    [(2)(A) If, after submitting to a worker a written 
statement certified under paragraph (1)(A), the Secretary finds 
that it is feasible or appropriate to approve a training 
program for such worker under section 236(a), the Secretary 
shall submit to such worker a written statement that revokes 
the certification made under paragraph (1)(A) with respect to 
such worker.
    [(B) If, after submitting to a worker a written statement 
certified under paragraph (1)(B), a State or State agency finds 
that it is feasible or appropriate to approve a training 
program for such worker pursuant to the requirements of section 
236(a), the State or State agency shall submit to such worker, 
and to the Secretary, a written statement that revokes the 
certification made under paragraph (1)(B) with respect to such 
worker.
    [(3) The Secretary shall submit to the Finance Committee of 
the Senate and to the Ways and Means Committee of the House of 
Representatives an annual report on the number of workers who 
received certifications under paragraph (1) during the 
preceding year and the number of certifications made under 
paragraph (1) that were revoked during the preceding year.

[SEC. 232. WEEKLY AMOUNTS.

    [(a) Subject to subsections (b) and (c), the trade 
readjustment 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 
231(a)(3)(B)) reduced (but not below zero) by--
          [(1) any training allowance deductible under 
        subsection (c); and
          [(2) income that is deductible from unemployment 
        insurance under the disqualifying income provisions of 
        the applicable State law or Federal unemployment 
        insurance law.
    [(b) Any adversely affected worker who is entitled to trade 
readjustment allowances and who is undergoing training approved 
by the Secretary, shall receive for each week in which he is 
under-going any such training, a trade readjustment allowance 
in an amount (computed for such week) equal to the amount 
computed under subsection (a) or (if greater) the amount of any 
weekly allowance for such training to which he would be 
entitled under any other Federal law for the training of 
workers, if he applied for such allowance. Such trade 
readjustment allowance shall be paid in lieu of any training 
allowance to which the worker would be entitled under such 
other Federal law.
    [(c) 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 he would be entitled 
(determined without regard to any disqualification under 
section 231(b)) to a trade readjustment allowance if he applied 
for such allowance, each such week shall be deducted from the 
total number of weeks of trade readjustment allowance otherwise 
payable to him under section 233(a) when he applies for a trade 
readjustment allowance and is determined to be entitled to such 
allowance. If such training allowance paid to such worker for 
any week of unemployment is less than the amount of the trade 
readjustment allowance to which he would be entitled if he 
applied for such allowance, he shall receive, when he applies 
for a trade readjustment allowance and is determined to be 
entitled to such allowance, a trade readjustment allowance for 
such week equal to such difference.

[SEC. 233. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.

    [(a)(1) The maximum amount of trade readjustment allowances 
payable with respect to the period covered by any certification 
to an adversely affected worker shall be the amount which is 
the product of 52 multiplied by the trade readjustment 
allowance payable to the worker for a week of total 
unemployment (as determined under section 232(a)), but such 
product shall be reduced by the total sum of the unemployment 
insurance to which the worker was entitled (or would have been 
entitled if he had applied therefor) in the worker's first 
benefit period described in section 231(a)(3)(A).
    [(2) A trade readjustment 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 
from adversely affected employment--
          [(A) within the period which is described in section 
        231(a)(1), and
          [(B) with respect to which the worker meets the 
        requirements of section 231(a)(2).
    [(3) Notwithstanding paragraph (1), in order to assist the 
adversely affected worker to complete training approved for him 
under section 236, 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--
          [(A) follows the last week of entitlement to trade 
        readjustment allowances otherwise payable under this 
        chapter; or
          [(B) begins with the first week of such training, if 
        such training begins after the last week described in 
        subparagraph (A).
        [Payments for such additional weeks may be made only 
        for weeks in such 26-week period during which the 
        individual is participating in such training.
    [(b) A trade readjustment allowance may not be paid for an 
additional week specified in subsection (a)(3) if the adversely 
affected worker who would receive such allowance did not make a 
bona fide application to a training program approved by the 
Secretary under section 236 within 210 days after the date of 
the worker's first certification of eligibility to apply for 
adjustment assistance issued by the Secretary, or, if later, 
within 210 days after the date of the worker's total or partial 
separation referred to in section 231(a)(1).
    [(c) Amounts payable to an adversely affected worker under 
this part shall be subject to such adjustment on a week-to-week 
basis as may be required by section 232(b).
    [(d) Notwithstanding any other provision of this Act or 
other Federal law, if the benefit year of a worker ends within 
an extended benefit period, the number of weeks of extended 
benefits that such worker would, but for this subsection, be 
entitled to in that extended benefit period shall be reduced 
(but not below zero) by the number of weeks for which the 
worker was entitled, during such benefit year, to trade 
readjustment allowances under this part. For purposes of this 
paragraph, the terms ``benefit year'' and ``extended benefit 
period'' shall have the same respective meanings given to them 
in the Federal-State Extended Unemployment Compensation Act of 
1970.
    [(e) No trade readjustment allowance shall be paid to a 
worker under this part for any week during which the worker is 
receiving on-the-job training.
    [(f) For purposes of this chapter, a worker shall be 
treated as participating in training during any week which is 
part of a break in training that does not exceed 14 days if--
          [(1) the worker was participating in a training 
        program approved under section 236(a) before the 
        beginning of such break in training, and
          [(2) the break is provided under such training 
        program.

[SEC. 234. APPLICATION OF STATE LAWS.

    [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--
          [(1) under which an adversely affected worker is 
        entitled to unemployment insurance (whether or not he 
        has filed a claim for such insurance), or
          [(2) if he is not entitled to unemployment insurance, 
        of the State in which he was totally or partially 
        separated,
shall apply to any such worker who files a claim for trade 
adjustment allowances. The State law so determined with respect 
to a separation of a worker shall remain applicable, for 
purposes of the preceding sentence, with respect to such 
separation until such worker becomes entitled to unemployment 
insurance under another State law (whether or not he has filed 
a claim for such insurance).

     [PART II--TRAINING, OTHER EMPLOYMENT SERVICES, AND ALLOWANCES


[SEC. 235. EMPLOYMENT SERVICES.

    [The Secretary shall make every reasonable effort to secure 
for adversely affected workers covered by a certification under 
subchapter A of this chapter counseling, testing, and placement 
services, and supportive and other services, provided for under 
any other Federal law. The Secretary shall, whenever 
appropriate, procure such services through agreements with the 
State.

[SEC. 236. TRAINING.

    [(a)(1) If the Secretary determines that--
          [(A) there is not suitable employment (which may 
        include technical and professional employment) 
        available for an adversely affected worker.
          [(B) the worker would benefit from appropriate 
        training.
          [(C) there is a reasonable expectation of employment 
        following completion of such training,
          [(D) training approved by the Secretary is reasonably 
        available to the worker from either governmental 
        agencies or private sources (which may include area 
        vocational education schools, as defined in section 
        195(2) of the Vocational Education Act of 1963, and 
        employers),
          [(E) the worker is qualified to undertake and 
        complete such training, and
          [(F) such training is suitable for the worker and 
        available at a reasonable cost,
the Secretary shall approve such training for the worker. Upon 
such approval, the worker shall be entitled to have payment of 
the costs of such training (subject to the limitations imposed 
by this section) paid on his behalf by the Secretary directly 
or through a voucher system. Insofar as possible, the Secretary 
shall provide or assure the provision of such training on the 
job, which shall include related education necessary for the 
acquisition of skills needed for a position within a particular 
occupation.
    [(2)(A) The total amount of payments that may be made under 
paragraph (1) for any fiscal year shall not exceed $80,000,000, 
except that for fiscal year 1997, the total amount of payments 
made under paragraph (1) shall not exceed $70,000,000.
    [(B) If, during any fiscal year, the Secretary estimates 
that the amount of funds necessary to pay the costs of training 
approved under this section will exceed the amount of the 
limitation imposedunder subparagraph (A), the Secretary shall 
decide how the portion of such limitation that has not been expended at 
the time of such estimate is to be apportioned among the States for the 
remainder of such fiscal year.
    [(3) For purposes of applying paragraph (1)(C), a 
reasonable expectation of employment does not require that 
employment opportunities for a worker be available, or offered, 
immediately upon the completion of training approved under this 
paragraph (1).
    [(4)(A) If the costs of training an adversely affected 
worker are paid by the Secretary under paragraph (1), no other 
payment for such costs may be made under any other provision of 
Federal law.
    [(B) No payment may be made under paragraph (1) of the 
costs of training an adversely affected worker if such 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 such costs have already 
        been paid under such other provision of Federal law.
    [(C) The provisions of this paragraph shall not apply to, 
or take into account, any funds, provided under any other 
provision of Federal law which are used for any purpose other 
than the direct payment of the costs incurred in training a 
particular adversely affected worker, even if such use has the 
effect of indirectly paying or reducing any portion of the 
costs involved in training the adversely affected worker.
    [(5) The training programs that may be approved under 
paragraph (1) include, but are not limited to--
          [(A) on-the-job training,
          [(B) any training program provided by a State 
        pursuant to section 303 of the Job Training Partnership 
        Act or title I of the Workforce Investment Act of 1998,
          [(C) any training program approved by a private 
        industry council established under section 102 of such 
        Act,
          [(D) any program of remedial education,
          [(E) any training program (other than a training 
        program described in paragraph (7) 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
          [(F) any other training program approved by the 
        Secretary.
    [(6)(A) The Secretary is not required under paragraph (1) 
to pay the costs of any training approved under paragraph (1) 
to the extent that such costs are paid--
          [(i) under any Federal or State program other than 
        this chapter, or
          [(ii) from any source other than this section.
    [(B) Before approving any training to which subparagraph 
(A) 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 
this section the portion of the costs of such 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 subparagraph 
(A).
    [(7) The Secretary shall not approve a training program 
if--
          [(A) all or a portion of the costs of such training 
        program are paid under any nongovernmental plan or 
        program,
          [(B) the adversely affected worker has a right to 
        obtain training or funds for training under such plan 
        or program, and
          [(C) such plan or program requires the worker to 
        reimburse the plan or program from funds provided under 
        this chapter, or from wages paid under such training 
        program, for any portion of the costs for such training 
        program paid under the plan or program.
    [(8) The Secretary may approve training for any adversely 
affected worker who is a member of a group certified under 
subchapter A any time after the date on which the group is 
certified under subchapter A, without regard to whether such 
worker has exhausted all rights to any unemployment insurance 
to which the worker is entitled.
    [(9) The Secretary shall prescribe regulations which set 
forth the criteria under each of the subparagraphs of paragraph 
(1) that will be used as the basis for making determinations 
under paragraph (1).
    [(b) The Secretary may, where appropriate, authorize 
supplemental assistance necessary to defray reasonable 
transportation and subsistence expenses for separate 
maintenance when training is provided in facilities which are 
not within commuting distance of a worker's regular place of 
residence. The Secretary may not authorize--
          [(1) payments for subsistence that exceed whichever 
        is the lesser of (A) the actual per diem expenses for 
        subsistence, or (B) payments at 50 percent of the 
        prevailing per diem allowance rate authorized under the 
        Federal travel regulations, or
          [(2) payments for travel expenses exceeding the 
        prevailing mileage rate authorized under the Federal 
        travel regulations, and
    [(c) The Secretary shall pay the costs of any on-the-job 
training of an adversely affected worker that is approved under 
subsection (a)(1) in equal monthly installments, but the 
Secretary may pay such costs, notwithstanding any other 
provision of this section, only if--
          [(1) no currently employed worker is displaced by 
        such adversely affected worker (including partial 
        displacement such as a reduction in the hours of 
        nonovertime work, wages, or employment benefits),
          [(2) such training does not impair existing contracts 
        for services or collective bargaining agreements.
          [(3) in the case of training which would be 
        inconsistent with the terms of a collective bargaining 
        agreement, the written concurrence of the labor 
        organization concerned has been obtained,
          [(4) no other individual is on layoff from the same, 
        or any substantially equivalent, job for which such 
        adversely affected worker is being trained,
          [(5) 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 such adversely 
        affected worker,
          [(6) the job for which such 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 currently employed individuals,
          [(7) such training is not for the same occupation 
        from which the worker was separated and with respect to 
        which such worker's group was certified and pursuant to 
        section 222,
          [(8) the employer certifies to the Secretary that the 
        employer will continue to employ such worker for at 
        least 26 weeks after completion of such training if the 
        worker desires to continue such employment and the 
        employer does not have due cause to terminate such 
        employment,
          [(9) the employer has not received payment under 
        subsection (a)(1) with respect to any other on-the-job 
        training provided by such employer which failed to meet 
        the requirements of paragraphs (1),( 2), (3), (4), (5), 
        and (6), and
          [(10) the employer has not taken, at any time, any 
        action which violated the terms of any certification 
        described in paragraph (8) made by such employer with 
        respect to any other on-the-job training provided by 
        such employer for which the Secretary has made a 
        payment under subsection (a)(1).
    [(d) 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 such training, or because of 
the application to any such 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. The Secretary shall submit to the Congress a 
quarterly report regarding the amount of funds expended during 
the quarter concerned to provide training under paragraph (1) 
and the anticipated demand for such funds for any remaining 
quarters in the fiscal year concerned.
    [(e) 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.

[SEC. 237. JOB SEARCH ALLOWANCES.

    [(a) Any adversely affected worker covered by a 
certification under subchapter A of this chapter may file an 
application with the Secretary for a job search allowance. Such 
allowance, if granted, shall provide reimbursement to the 
worker of 90 percent of the cost of necessary job search 
expenses as prescribed by regulations of the Secretary; except 
that--
          [(1) such reimbursement may not exceed $800 for any 
        worker, and
          [(2) reimbursement may not be made for subsistence 
        and transportation expenses at levels exceeding those 
        allowable under section 236(b)(1) and (2).
    [(b) A job search allowance may be granted only--
          [(1) to assist an adversely affected worker who has 
        been totally separated in securing a job within the 
        United States;
          [(2) where the Secretary determines that such worker 
        cannot reasonably be expected to secure suitable 
        employment in the commuting area in which he resides; 
        and
          [(3) where the worker has filed an application for 
        such allowance with the Secretary before--
                  [(A) the later of--
                          [(i) the 365th day after the date of 
                        the certification under which the 
                        worker is eligible, or
                          [(ii) the 365th day after the date of 
                        the worker's last total separation; or
                  [(B) the 182d day after the concluding date 
                of any training received by the worker, if the 
                worker was referred to such training by the 
                Secretary.
    [(c) The Secretary shall reimburse any adversely affected 
worker for necessary expenses incurred by such worker in 
participating in a job search program approved by the 
Secretary.

[SEC. 238. RELOCATION ALLOWANCES.

    [(a) Any adversely affected worker covered by a 
certification under subchapter A of this chapter may file an 
application with the Secretary for a relocation allowance, 
subject to the terms and conditions of this section, if such 
worker files such application before--
          [(1) the later of--
                  [(A) the 425th day after the date of the 
                certification, or
                  [(B) the 425th day after the date of the 
                worker's last total separation; or
          [(2) the 182d day after the concluding date of any 
        training received by such worker, if the worker was 
        referred to such training by the Secretary.
    [(b) A relocation allowance may be granted only to assist 
an adversely affected worker in relocating within the United 
States and only if the Secretary determines that such worker 
cannot reasonably be expected to secure suitable employment in 
the commuting area in which he resides and that such worker--
          [(1) has obtained suitable employment affording a 
        reasonable expectation of long-term duration in the 
        area in which he wishes to relocate, or
          [(2) has obtained a bona fide offer of such 
        employment, and
          [(3) is totally separated from employment at the time 
        relocation commences.
    [(c) A relocation allowance shall not be granted to such 
worker unless his relocation occurs within 182 days after the 
filing of the application therefor of (in the case of a worker 
who has been referred to training by the Secretary) within 182 
days after the conclusion of such training.
    [(d) For the purposes of this section, the term 
``relocation allowance'' means--
           [(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 236(b) (1) and (2)) 
        specified in regulations prescribed by the Secretary, 
        incurred in transporting a worker and his family if 
        any, and household effects, and
           [(2) a lump sum equivalent to three times the 
        worker's average weekly wage, up to a maximum payment 
        of $800.

                   [Subchapter C--General Provisions


[SEC. 239. AGREEMENTS WITH STATES.

    [(a) 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 subchapter as ``cooperating 
States'' and ``cooperating States agencies'' respectively). 
Under such an agreement, the cooperating State agency (1) as 
agent of the United States, will receive applications for, and 
will provide payments on the basis provided in this chapter, 
(2) where appropriate, but in accordance with subsection (f), 
will afford adversely affected workers testing, counseling, 
referral to training and job search programs, and placement 
services, (3) will make any certifications required under 
section 231(c)(2), and (4) will otherwise cooperate with the 
Secretary and with other State and Federal agencies in 
providing payments and services under this chapter.
    [(b) Each agreement under this subchapter shall provide the 
terms and conditions upon which the agreement may be amended, 
suspended, or terminated.
    [(c) Each agreement under this subchapter 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.
    [(d) A determination by a cooperating State agency with 
respect to entitlement to program benefits under an agreement 
is subject to review in the same manner and to the same extent 
as determinations under the applicable State law and only in 
that manner and to that extend.
    [(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 Act and under 
title III of the Job Training Partnership Act or title I of the 
Workforce Investment Act of 1998 upon such terms and conditions 
as are established by the Secretary in consultation with the 
States and set forth in such agreement. Any agency of the State 
jointly administering such provisions under such agreement 
shall be considered to be a cooperating State agency for 
purposes of this chapter.
    [(f) Each cooperating State agency shall, in carrying out 
subsection (a)(2)--
          [(1) advise each worker who applies for unemployment 
        insurance of the benefits under this chapter and the 
        procedures and deadlines for applying for such 
        benefits,
          [(2) facilitate the early filing of petitions under 
        section 221 for any workers that the agency considers 
        are likely to be eligible for benefits under this 
        chapter,
          [(3) advise each adversely affected worker to apply 
        for training under section 236(a) before, or at the 
        same time, the worker applies for trade readjustment 
        allowances under part I of subchapter B, and
          [(4) as soon as practicable, interview and adversely 
        affected worker regarding suitable training 
        opportunities available to the worker under section 236 
        and review such opportunities with the worker.
    [(g) In order to promote the coordination of workforce 
investment activities in each State with activities carried out 
under this chapter, any 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.

[SEC. 240. ADMINISTRATION ABSENT STATE AGREEMENT.

    [(a) In any State where there is no agreement in force 
between a State or its agency under section 239, the Secretary 
shall arrange under regulations prescribed by him for 
performance of all necessary functions under subchapter B of 
this chapter, including provision for a fair hearing for any 
worker whose application for payments is denied.
    [(b) A final determination under subsection (a) with 
respect to entitlement to program benefits under subchapter B 
of 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. 241. PAYMENTS TO STATES.

    [(a) The Secretary shall from time to time certify to the 
Secretary of the Treasury for payment to each cooperating State 
the sums necessary to enable such State as agent of the United 
States to make payments provided for by this chapter.
    [(b) All money paid a State under this section shall be 
used solely for the purposes for which it is paid; and money so 
paid which is not used for such purposes shall be returned, at 
the time specified in the agreement under this subchapter, to 
the Secretary of the Treasury.
    [(c) Any agreement under this subchapter may require any 
officer or employee of the State certifying payments for 
disbursing funds under the agreement or otherwise participating 
in the performance of the agreement, to give a surety bond to 
the United States in such amount as the Secretary may deem 
necessary, and may provide for the payment of the cost of such 
bond from funds for carrying out the purposes of this chapter.

[SEC. 242. LIABILITIES OF CERTIFYING AND DISBURSING OFFICERS.

    [(a) No person designated by the Secretary, or designated 
pursuant to an agreement under this subchapter, as a certifying 
officer, shall, in the absence of gross negligence or intent to 
defraud the United States, be liable with respect to any 
payment certified by him under this chapter.
    [(b) No disbursing officer shall, in the absence of gross 
negligence or intent to defraud the United States, be liable 
with respect to any payment by him under this chapter if it was 
based upon a voucher signed by a certifying officer designated 
as provided in subsection (a).

[SEC. 243. FRAUD AND RECOVERY OF OVERPAYMENTS.

    [(a)(1) If a cooperating State agency, 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), such person shall be liable to repay such amount to the 
State agency or the Secretary, as the case may be, except that 
the State agency or the Secretary may waive such repayment if 
such agency or the Secretary determines, in accordance with 
guidelines prescribed by the Secretary that--
          [(A) the payment was made without fault on the part 
        of such individual, and
          [(B) requiring such repayment would be contrary to 
        equity and good conscience.
    [(2) Unless an overpayment is otherwise recovered, or 
waived under paragraph (1), the State agency or the Secretary 
shall re-cover the overpayment of deductions from any sums 
payable to such person under this chapter, under any Federal 
unemployment compensation law administered by the State agency 
or the Secretary, or under any other Federal law administered 
by the State agency or the Secretary which provides for the 
payment of assistance or an allowance with respect to 
unemployment, and notwithstanding any other provision of State 
law or Federal law to the contrary, the Secretary may require 
the State agency to recover any overpayment under this chapter 
by deduction from any unemployment insurance payable to such 
person under the State law, except that no single deduction 
under this paragraph shall exceed 50 percent of the amount 
otherwise payable.
    [(b) If a cooperating State agency, the Secretary, or a 
court of competent jurisdiction determines that an individual--
          [(1) knowingly has made, or caused another to make, a 
        false statement or representation of a material fact, 
        or
          [(2) knowingly has failed, or caused another to fail, 
        to disclose a material fact,
and as a result of such false statement or representation, or 
of such nondisclosure, such individual has received any payment 
under this chapter to which the individual was not entitled, 
such individual shall, in addition to any other penalty 
provided by law, be ineligible for any further payments under 
this chapter.
    [(c) 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 State agency or the Secretary, 
as the case may be, has been made, notice of the determination 
and an opportunity for a fair hearing thereon has been given to 
the individual concerned, and the determination has become 
final.
    [(d) Any amount recovered under this section shall be 
returned to the Treasury of the United States.

[SEC. 244. 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 or pursuant to an agreement under section 239 
shall be fined not more than $1,000 or imprisoned for not more 
than one year, or both.

[SEC. 245. AUTHORIZATION OF APPROPRIATIONS.

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

[SEC. 246. SUPPLEMENTAL WAGE ALLOWANCE DEMONSTRATION PROJECTS.

    [(a) The Secretary shall establish one or more 
demonstration projects during fiscal years 1989 and 1990 for 
the purpose of--
          [(1) determining the attractiveness of a supplemental 
        wage allowance to various categories of workers 
        eligible for assistance under this chapter, based on 
        the amount and duration of the supplement;
          [(2) determining the effectiveness of a supplement 
        wage allowance as an option under this chapter in 
        facilitating the readjustment of adversely affected 
        workers; and
          [(3) determining whether a supplemental wage 
        allowance should be made an option under the Trade 
        Adjustment Assistance program for all fiscal years.
    [(b)(1) For purposes of this section, the term 
``supplemental wage allowance'' means a payment that is made to 
an adversely affected worker who--
          [(A) accepts full-time employment at an average 
        weekly wage that is less than the average weekly wage 
        of the worker in the adversely affected employment.
          [(B) prior to such acceptance, is eligible for trade 
        readjustment allowance under part 1 of subchapter B, 
        and
          [(C) voluntarily elects to receive such payment in 
        lieu of any trade readjustment allowances that the 
        worker would otherwise be eligible to receive with 
        respect to the period covered by the certification made 
        under subchapter A that applies to such worker.
    [(2) A supplemental wage allowance shall be provided under 
any demonstration project established under subsection (a) to a 
worker described in paragraph (1) for each week during which 
the worker performs services in the full-time employment 
referred to in paragraph (1)(A) in an amount that does not 
exceed the lesser of--
          [(A) the amount of the trade readjustment allowance 
        that the worker would have been eligible to receive for 
        any week under part 1 of subchapter B if the worker had 
        not accepted the full-time employment and had not made 
        the election described in paragraph (1)(C), or
          [(B) the excess of--
                  [(i) an amount equal to 80 percent of the 
                average weekly wage of the worker in the 
                adversely affected employment, over
                  [(ii) the average weekly wage in the full-
                time employment.
    [(3)(A) Supplemental wage allowances shall not be provided 
under any demonstration project established under subsection 
(a) for more than 52 weeks.
    [(B) The total amount of supplemental wage allowances that 
may be paid to any worker under any demonstration project 
established under subsection (a) with respect to the period 
covered by the certification applicable to such worker shall 
not exceed an amount that is equal to the excess of--
          [(i) the amount of the limitation imposed under 
        section 233(A)(1) with respect to such worker for such 
        period, over
          [(ii) the amount of the trade readjustment allowances 
        paid under part I of subchapter B to such worker for 
        such period.
    [(c) the Secretary shall provide for an evaluation of 
demonstration projects conducted under this section to 
determine at least the following.
          [(1) the extent to which different age groups of 
        eligible recipients utilize the supplemental wage 
        allowance;
          [(2) the effect of the amount and duration of the 
        supplemental wage allowance on the utilization of the 
        allowance;
          [(3) the extent to which the supplemental wage 
        allowance affects the demand for training and the 
        appropriateness thereof;
          [(4) the extent to which the supplemental wage 
        allowance facilitates the readjustment of workers who 
        would not otherwise utilize benefits provided under 
        this chapter;
          [(5) the extent to which the allowance affects the 
        cost of carrying out the provisions of this chapter; 
        and
          [(6) the effectiveness of the supplemental wage 
        allowance as an option under this chapter in 
        facilitating the readjustment of adversely affected 
        workers.
    [(d) By no later than the date that is 6 years after the 
date of enactment of the Omnibus Trade and Competitiveness Act 
of 1988, the Secretary shall transmit to the Congress a report 
that includes--
          [(1) an evaluation of the projects authorized under 
        this section that is conducted in accordance with 
        subsection (c), and
          [(2) a recommendation as to whether the supplemental 
        wage allowance should be available on a permanent basis 
        as an option for some or all worker eligible for 
        assistance under this chapter.

[SEC. 245. DEFINITIONS.

    [For purposes of this chapter--
          [(1) The term ``adversely affected employment'' means 
        employment in a firm or appropriate subdivision of a 
        firm, if workers of such firm or subdivision are 
        eligible to apply for adjustment assistance under this 
        chapter.
          [(2) The term ``adversely affected worker'' means an 
        individual who, because of lack of work in adversely 
        affected employment
                  [(A) has been totally or partially separated 
                from such employment, or
                  [(B) has been totally separated from 
                employment with the firm in a subdivision of 
                which such adversely affected employment 
                exists.
          [[(3) Repealed.]
          [(4) The term ``average weekly wage'' means one-
        thirteenth of the total wages paid to an individual in 
        the high quarter. For purposes of this computation, the 
        high quarter shall be that quarter in which the 
        individual's total wages were highest among the first 4 
        of the last 5 completed calendar quarters immediately 
        before the quarter in which occurs the week with 
        respect to which the computation is made. Such week 
        shall be 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.
          [(5) The term ``average weekly hours'' means the 
        average hours worked by the individual (excluding 
        overtime) in the employment from which he has been or 
        claims to have been separated in the 52 weeks 
        (excluding weeks during which the individual was sick 
        or on vacation) preceding the week specified in the 
        last sentence of paragraph (4).
          [(6) The term ``partial separation'' means, with 
        respect to an individual who has not been totally 
        separated, that the has had--
                  [(A) his hours of work reduced to 80 percent 
                less of his average weekly hours in adversely 
                affected employment and
                  [(B) his wages reduced to 80 percent or less 
                of his average weekly wage in such adversely 
                affected employment.
          [(8) The term ``State'' includes the District of 
        Columbia and the Commonwealth of Puerto Rico: and the 
        term ``United States'' when used in the geographical 
        sense includes such Commonwealth.
          [(9) The term ``State agency'' means the agency of 
        the State which administers the State law.
          [(10) The term ``State law'' means the unemployment 
        insurance law of the State approved by the Secretary of 
        Labor under section 3304 of the Internal Revenue Code 
        of 1954.
          [(11) 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.
          [(12) 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. The terms ``regular compensation'', 
        ``additional compensation'', and ``extended 
        compensation'' have the same respective meaning that 
        are given them in section 205(2), (3), and (4) of the 
        Federal-State Extended Unemployment Compensation Act of 
        1970 (26 U.S.C. 3304 note.)
          [(13) The term ``week'' means a week as defined in 
        the applicable State law.
          [(14) 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.
          [(15) The term ``benefit period'' means, with respect 
        to an individual--
                  [(A) 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, or
                  [(B) the equivalent to such a benefit year or 
                ensuing period provided for under the 
                applicable Federal unemployment insurance law.
          [(16) The term ``on-the-job training'' means training 
        provided by an employer to an individual who is 
        employed by the employer.
          [(17)(A) The term ``job search program'' means a job 
        search workshop or job finding club.
          [(B) The term ``job search workshop'' means a short 
        (1 to 3 days) seminar designed to provide participants 
        with knowledge that will enable the participants to 
        find jobs. Subjects are not limited to, but should 
        include, labor market information, resume writing, 
        interviewing techniques, and techniques for finding job 
        openings.
          [(C) The term ``job finding club'' means a job search 
        workshop which includes a period (1 and 2 weeks) of 
        structured supervised activity in which participants 
        attempt to obtain jobs.

[SEC. 248. REGULATIONS.

    [The Secretary shall prescribe such regulations as may be 
necessary to carry out the provisions of this chapter.

[SEC. 249. SUBPENA POWER.

    [(a) The Secretary may require by subpena the attendance of 
witnesses and the production of evidence necessary for him to 
make a determination under the provisions of this chapter.
    [(b) If a person refuses to obey a subpena issued under 
subsection (a), a United States district court within the 
jurisdiction of which the relevant proceeding under this 
chapter is conducted may, upon petition by the Secretary, issue 
an order requiring compliance with such subpena.

[SEC. 249A. NONDUPLICATION OF ASSISTANCE.

    [No worker may receive assistance relating to a separation 
pursuant to certifications under both subchapters A and D of 
this chapter.

    [Subchapter D--NAFTA Transitional Adjustment Assistance Program


[SEC. 250. ESTABLISHMENT OF TRANSITIONAL PROGRAM.

    [(a) Group Eligibility Requirements.--
          [(1) Criteria.--A group of workers (including workers 
        in any agricultural firm or subdivision of an 
        agricultural firm) shall be certified as eligible to 
        apply for adjustment assistance under this subchapter 
        pursuant to a petition filed under subsection (b) if 
        the Secretary determines that a significant number or 
        proportion of the workers in such workers' firm of an 
        appropriate subdivision of the firm have become totally 
        or partially separated, or are threatened to become 
        totally or partially separated, and either--
                  [(A) that--
                          [(i) the sales or production, or 
                        both, of such firm or subdivision have 
                        decreased absolutely,
                          [(ii) imports from Mexico or Canada 
                        of articles like or directly 
                        competitive with articles produced by 
                        such firm or subdivision have 
                        increased, and
                          [(iii) the increase in imports under 
                        clause (ii) contributed importantly to 
                        such workers' separation or threat of 
                        separation and to the decline in the 
                        sales or production of such firm or 
                        subdivision; or
                  [(B) that there has been a shift in 
                production by such workers' firm or subdivision 
                to Mexico or Canada of articles like or 
                directly competitive with articles which are 
                produced by the firm or subdivision.
          [(2) Definition of contributed importantly.--The term 
        ``contributed importantly'', as used in paragraph 
        (1)(A)(iii), means a cause which is important but not 
        necessarily more important than any other cause.
          [(3) Regulations.--The Secretary shall issue 
        regulations relating to the application of the criteria 
        described in paragraph (1) in making preliminary 
        findings under subsection (b) and determinations under 
        subsection (c).
    [(b) Preliminary Findings and Basic Assistance.--
          [(1) Filing of petitions.--A petition for 
        certification of eligibility to apply for adjustment 
        assistance under this subchapter may be filed by a 
        group of workers (including workers in any agricultural 
        firm or subdivision of an agricultural firm) or by 
        their certified or recognized union or other duly 
        authorized representative with the Governor of the 
        State in which such workers' firm or subdivision 
        thereof is located.
          [(2) Filing and assistance.--Upon receipt of a 
        petition under paragraph (1), the governor shall--
                  [(A) Notify the Secretary that the Governor 
                has received the petition;
                  [(B) within 10 days after receiving the 
                petition--
                          [(i) make a preliminary finding as to 
                        whether the petition meets the criteria 
                        described in subsection (a)(1) (and for 
                        purposes of this clause the criteria 
                        described under subparagraph (A)(iii) 
                        of such subsection shall be 
                        disregarded), and
                          [(ii) transmit the petition, together 
                        with a statement of the finding under 
                        clause (i) and reasons therefor, to the 
                        Secretary for action under subsection 
                        (c);
                  and
                  [(C) if the preliminary finding under 
                subparagraph (B)(i) is affirmative, ensure that 
                rapid response and basic readjustment services 
                authorized under other Federal law are made 
                available to the workers.
      [(c) Review of Petitions By Secretary; Certifications.--
          [(1) In general.--The Secretary, with 30 days after 
        receiving a petition under subsection (b), shall 
        determine whether the petition meets the criteria 
        described in subsection (a)(1). Upon a determination 
        that the petition meets such criteria, the Secretary 
        shall issue to workers covered by the petition a 
        certification of eligibility to apply for assistance 
        described in subsection(d).
          [(2) Denial of certification.--Upon denial of 
        certification with respect to a petition under 
        paragraph (1), the Secretary shall review the petition 
        in accordance with the requirements of subchapter A to 
        determine if the workers may be certified under such 
        subchapter.
    [(d) Comprehensive Assistance.--Workers covered by 
certification issued by the Secretary under subsection (c) 
shall be provided, in the same manner and to the same extent as 
workers covered under a certification under subchapter A, the 
following:
          [(1) Employment services described in section 235.
          [(2) Training described in section 236, except that 
        notwithstanding the provisions of section 236(a)(2)(A), 
        the total amount of payments for training under this 
        subchapter for the period beginning October 1, 1998, 
        and ending September 30, 2001, shall not exceed 
        $30,000,000 for any fiscal year.
          [(3) Trade readjustment allowances described in 
        sections 231 through 234, except that--
                  [(A) the provisions of sections 231(a)(5)(C) 
                and 231(c), authorizing the payment of trade 
                readjustment allowances upon a finding that it 
                is not feasible or appropriate to approve a 
                training program for a worker, shall not be 
                applicable to payment of such allowances under 
                this subchapter; and
                  [(B) notwithstanding the provisions of 
                section 233(b), in order for a worker to 
                qualify for trade readjustment allowances under 
                this subchapter, the worker shall be enrolled 
                in a training program approved by the Secretary 
                under section 236(a) by the later of--
                          [(i) the last day of the 16th week of 
                        such worker's initial unemployment 
                        compensation benefit period, or
                          [(ii) the last day of the 6th week 
                        after the week in which the Secretary 
                        issues a certification covering such 
                        worker.
        [In cases of extenuating circumstances relating to 
        enrollment in a training program, the Secretary may 
        extend the time for enrollment for a period not to 
        exceed 30 days.
          [(4) Job search allowances described in section 237.
          [(5) Relocation allowances described in section 238.
    [(e) Administration.--The provisions of subchapter C shall 
apply to the administration of the program under this 
subchapter in the same manner and to the same extent as such 
provisions apply to the administration of the program under 
subchapters A and B, except that the agreement between the 
Secretary and the States described in section 239 shall specify 
the procedures that will be used to carry out the certification 
process under subsection (c) and the procedures for providing 
relevant data by the Secretary to assist the States in making 
preliminary findings under subsection (b)]

              CHAPTER 2--ADJUSTMENT ASSISTANCE FOR WORKERS

                    Subchapter A--General Provisions

SEC. 221. DEFINITIONS.

  In this chapter:
          (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 undertaken by an individual 
        to specifications provided by and in close consultation 
        with an employer in consideration of the employer's 
        commitment to hire the individual upon successful 
        completion of the agreed training program.
          (11) Downstream producer.--The term ``downstream 
        producer'' means a firm that performs additional, 
        value-added production processes, including a firm that 
        performs final assembly, finishing, or packaging of 
        articles produced by another firm.
          (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) Secretary.--The term ``Secretary'' means the 
        Secretary of Labor.
          (20) State.--The term ``State'' includes each State 
        of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
          (21) State agency.--The term ``State agency'' means 
        the agency of the State that administers the State law.
          (22) 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.
          (23) Supplier.--The term ``supplier'' means a firm 
        that produces component parts for, or articles 
        considered to be a part of, the production process for 
        articles produced by a firm or subdivision covered by a 
        certification of eligibility under section 231. The 
        term ``supplier'' also includes a firm that provides 
        services under contract to a firm or subdivision 
        covered by such certification.
          (24) 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.
          (25) 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.).
          (26) Week.--Except as provided in paragraph 5(B)(ii), 
        the term ``week'' means a week as defined in the 
        applicable State law.
          (27) 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;
                  (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.); 
                                and
                                  (IV) 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;
                  (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 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; and
                  (E) the number of petitions filed and workers 
                certified in each United States congressional 
                district.
  (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 for Workers, Farmers, 
                Fishermen, Communities, and Firms 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.

                      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) 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
                  (B)(i)(I) the value or volume of imports of 
                articles like or directly competitive with 
                articles produced by that firm or subdivision 
                have increased; and
                  (II) the increase in the value or volume of 
                imports described in subclause (I) contributed 
                importantly to the workers' separation or 
                threat of separation; or
                  (ii)(I) 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
                  (II) the shift in production described in 
                subclause (I) 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 to a firm (or subdivision) or 
                downstream producer to a firm (or subdivision) 
                described in paragraph (1)(B) (i) or (ii); and
                  (C) a loss of business with a firm (or 
                subdivision) described in paragraph (1)(B) (i) 
                or (ii) contributed importantly to the workers' 
                separation or threat of separation determined 
                under subparagraph (A).
          (3) 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.
                  (D) Service workers.--
                          (i) In general.--Not later than 6 
                        months after the date of enactment of 
                        the Trade Adjustment Assistance for 
                        Workers, Farmers, Fishermen, 
                        Communities, and Firms Act of 2002, the 
                        Secretary shall establish a program to 
                        provide assistance under this chapter 
                        to domestic operators of motor carriers 
                        who are adversely affected by 
                        competition from foreign owned and 
                        operated motor carriers.
                          (ii) Data collection system.--Not 
                        later than 6 months after the date of 
                        enactment of the Trade Adjustment 
                        Assistance for Workers, Farmers, 
                        Fishermen, Communities, and Firms Act 
                        of 2002, the Secretary shall put in 
                        place a system to collect data on 
                        adversely affected service workers that 
                        includes the number of workers by 
                        State, industry, and cause of 
                        dislocation for each worker.
                          (iii) Report.--Not later than 2 years 
                        after the date of enactment of the 
                        Trade Adjustment Assistance for 
                        Workers, Farmers, Fishermen, 
                        Communities, and Firms Act of 2002, the 
                        Secretary shall report to Congress the 
                        results of a study on ways for 
                        extending the programs in this chapter 
                        to adversely affected service workers, 
                        including recommendations for 
                        legislation.
  (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 direct 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.); 
                                and
                                  (IV) 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 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.

                     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 insurance coverage options as described in 
        title VI of the Trade Adjustment Assistance for 
        Workers, Farmers, Fishermen, Communities, and Firms 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) on or after the date, as specified in the 
                certification under which the worker is 
                covered, on which total or partial separation 
                from adversely affected employment began or 
                threatened to begin;
                  (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 has 
                marketable skills 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.
                  (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) Duration.--The duration of training 
                appropriate for the worker to obtain suitable 
                employment exceeds the worker's maximum 
                entitlement to basic and additional trade 
                adjustment allowances, and financial support 
                available through other Federal or State 
                programs, including chapter 5 of subtitle B of 
                title I of the Workforce Investment Act of 1998 
                (29 U.S.C. 2861 et seq.), that would enable the 
                worker to complete a suitable training program 
                cannot be assured.
                  (G) Employment available.--There is 
                employment (which may include technical and 
                professional employment) available for the 
                worker that offers equivalent wages to those 
                that the worker earned prior to separation.
                  (H) No benefit.--The worker would not benefit 
                from any training, or no training that is 
                suitable for the worker is available at a 
                reasonable cost.
                  (I) No reasonable expectation of 
                employment.--There is no reasonable expectation 
                of employment following completion of the 
                training.
                  (J) 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).
                  (K) Worker not qualified.--The worker is not 
                qualified to undertake and complete any 
                training.
          (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) 
                (except for the determination under 
                subparagraphs (F) and (G) of 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.
          (4) Reasonable expectation of employment.--For 
        purposes of applying subsection (c)(1)(I), a reasonable 
        expectation of employment does not require that 
        employment opportunities for a worker be available, or 
        offered, immediately upon the completion of training 
        approved under this section.

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 
                for Workers, Farmers, Fishermen, Communities, 
                and Firms Act of 2002, shall not be ineligible 
                to receive benefits 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.
                  (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 certifies to the 
                        Secretary that the employer will 
                        continue to employ the worker for at 
                        least 26 weeks after completion of the 
                        training if the worker desires to 
                        continue the employment and the 
                        employer does not have due cause to 
                        terminate the employment;
                          (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. 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--
                          (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 $1,200 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 $1,500.
  (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 for 
        Workers, Farmers, Fishermen, Communities, and Firms Act 
        of 2002, the Secretary shall establish 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 at least 30 hours a week in 
                the reemployment; 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 $10,000 over 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.
  (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 for Workers, Farmers, Fishermen, 
                Communities, and Firms 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.
          (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, 2006, such sums as may be necessary to carry out 
the purposes of this chapter. 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.

               CHAPTER 3--ADJUSTMENT ASSISTANCE FOR FIRMS


SEC. 251. PETITIONS AND DETERMINATIONS.

    (a) A petition for a certification of eligibility to apply 
for adjustment assistance under this chapter may be filed with 
the Secretary of Commerce (hereinafter in this chapter referred 
to as the ``Secretary'') by a firm (including any agricultural 
firm) or its representative. Upon receipt of the petition, the 
Secretary shall promptly publish notice in the Federal Register 
that he has received the petition and initiated an 
investigation.
    (b) If the petitioner, or any other person, organization, 
or group 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 persons an opportunity to be 
present, to produce evidence, and to be heard.
    (c)(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--
          (A) 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,
          [(B) that--
                  [(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 12-month period preceding the most 
                recent 12-month period for which data are 
                available have decreased absolutely, and
          [(C) increases 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.]
          (B) increases in 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, 
        or
          (C) 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.
    (2) For purposes of [paragraph (1)(C)] subparagraphs (B) 
and (C) of paragraph (1)--
          (A) The term ``contributed importantly'' means a 
        cause which is important but not necessarily more 
        important than any other cause.

           *       *       *       *       *       *       *


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

    (a) In the case of any firm which is small (within the 
meaning of the Small Business Act and regulations promulgated 
thereunder), the Secretary may delegate all of his functions 
under this chapter (other than the functions under sections 251 
and 252(d) with respect to the certification of eligibility and 
section 264) to the Administrator of the Small Business 
Administration.
    [(b) There are hereby authorized to be appropriated to the 
Secretary for the period beginning October 1, 1998, and ending 
September 30, 2001 such sums as may be necessary to carry out 
his functions under this chapter 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 chapter), which sums are authorized to be 
appropriated to remain available until expended.]
    (b) There are authorized to be appropriated to the 
Secretary $16,000,000 for each of fiscal years 2002 through 
2006, 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.

           *       *       *       *       *       *       *


SEC. 265. ASSISTANCE TO INDUSTRIES.

    (a) The Secretary may provide technical assistance, on such 
terms and conditions as the Secretary deems appropriate, for 
the establishment of industrywide programs for new product 
development, new process development, export development, or 
other uses consistent with the purposes of this chapter. Such 
technical assistance may be provided through existing agencies, 
private individuals, firms, universities and institutions, and 
by grants, contracts, or cooperative agreements to 
associations, unions, or other non-profit industry 
organizations in which a substantial number of firms or workers 
have been [certified as eligible to apply for adjustment 
assistance under section 223 or 251] certified as eligible for 
trade adjustment assistance benefits under section 231, or as 
eligible to apply for adjustment assistance under section 251.
    (b) Expenditures for technical assistance under this 
section may be up to $10,000,000 annually per industry and 
shall be made under such terms and conditions as the Secretary 
deems appropriate.

           [CHAPTER 4--ADJUSTMENT ASSISTANCE FOR COMMUNITIES

    [[The Adjustment Assistance for Communities program 
terminated on September 30, 1982]]

                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 for Workers, Farmers, 
Fishermen, Communities, and Firms Act of 2002, there shall be 
established in 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 1 of the following conditions 
applies:
          (1) Number of job losses.--The Director shall certify 
        that a community is eligible for assistance under this 
        chapter if--
                  (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 
        shall certify that a community is eligible for 
        assistance under this chapter if 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;
          (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, 2006, 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 for 
Workers, Farmers, Fishermen, Communities, and Firms 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.

                  CHAPTER 5--MISCELLANEOUS PROVISIONS


SEC. 280. GENERAL ACCOUNTING OFFICE REPORT.

    (a) The Comptroller General of the United States shall 
conduct a study of the adjustment assistance programs 
established under chapters 2, 3, and 4 of this title and shall 
report the results of such study to the Congress no later than 
[January 31, 1980] January 31, 2004. Such report shall include 
an evaluation of--

           *       *       *       *       *       *       *


SEC. 284. JUDICIAL REVIEW.

    (a) A worker, group of workers, certified or recognized 
union, or authorized representative of such worker or group 
aggrieved by a final determination of the Secretary of Labor 
[under section 223 or section 250(c) of this title, a firm or 
its representative or any other interested domestic party 
aggrieved by a final determination of the Secretary of Commerce 
under section 251 of this title, or a community or any other 
interested domestic party aggrieved by a final determination of 
the Secretary of Commerce under section 271] 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, a producer (as 
defined in section 299(2)) aggrieved by a determination of the 
Secretary of Commerce under section 299B, or a community or any 
other interested domestic party aggrieved by a final 
determination of the Director of the Office of Community Trade 
Adjustment under section 273''.

           *       *       *       *       *       *       *


[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 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 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.]

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, 2006.
          (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, 2006, 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, 
        2006.
          (2) Assistance for communities.--Technical assistance 
        and other payments may not be provided under chapter 4 
        after September 30, 2006.
          (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, 2006.
                  (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, 2006, 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.

              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'' means any person 
        who is engaged in the production and sale of an 
        agricultural commodity in the United States and who 
        owns or shares the ownership and risk of loss of the 
        agricultural commodity, except 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 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 60 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 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. 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.--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:
          (1) 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.
          (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 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.
          (4) 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--
                  (A) information regarding the feasibility and 
                desirability of substituting 1 or more alternative 
                commodities for the adversely affected agricultural 
                commodity; and
                  (B) 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.
  (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.--
          (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 
2006 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.

             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 60 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 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 producercovered 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 
2006 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.

                          TARIFF ACT OF 1930

           *       *       *       *       *       *       *


                     TITLE III--SPECIAL PROVISIONS

           *       *       *       *       *       *       *


               PART II--UNITED STATES TARIFF COMMISSION

           *       *       *       *       *       *       *



SEC. 318. EMERGENCIES.

    (a) Whenever the President shall by proclamation declare an 
emergency to exist by reason of a state of war, or otherwise, 
he may authorize the Secretary of the Treasury to extend during 
the continuance of such emergency the time herein prescribed 
for the performance of any act, and may authorize the Secretary 
of the Treasury to permit, under such regulations as the 
Secretary of the Treasury may prescribe, the importation free 
of duty of food, clothing, and medical, surgical, and other 
supplies for use in emergency relief work. The Secretary of the 
Treasury shall report to the Congress any action taken under 
the provisions of this section.
    (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. 330. ORGANIZATION OF THE COMMISSION.

    (a) * * *

           *       *       *       *       *       *       *

    (e) Authorization of Appropriations.--(1) * * *
    (2)(A) There are authorized to be appropriated to the 
Commission for necessary expenses (including the rental of 
conference rooms in the District of Columbia and elsewhere) not 
to exceed the following:
          [(i) $41,170,000 for fiscal year 1991.
          [(ii) $44,052,000 for fiscal year 1992.]
          (i) $51,400,000 for fiscal year 2002.
          (ii) $53,400,000 for fiscal year 2003.

           *       *       *       *       *       *       *

    (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.

           *       *       *       *       *       *       *


                  TITLE IV--ADMINISTRATIVE PROVISIONS

      PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM


                       Subpart A--Definitions

           *       *       *       *       *       *       *



SEC. 401. MISCELLANEOUS.

    When used in this title or in Part I of Title III--
          (a) * * *

           *       *       *       *       *       *       *

          (t) The term ``land, air, or vessel carrier'' means a 
        land, air, or vessel carrier, as the case may be, that 
        transport goods or passengers for payment or other 
        consideration, including money or services rendered.

           *       *       *       *       *       *       *


      PART II--REPORT, ENTRY, AND UNLADING OF VESSELS AND VEHICLES


SEC. 431. MANIFEST--REQUIREMENT, FORM, AND CONTENTS.

    (a) * * *
    (b) Production of Manifest.--(1) Any manifest required by 
the Customs Service shall be signed, produced, delivered or 
electronically transmitted by the master or person in charge of 
the vessel, aircraft, or vehicle, or by any other authorized 
agent of the owner or operator of the vessel, aircraft, or 
vehicle in accordance with the requirements prescribed under 
subsection (d). A manifest may be supplemented by bill of 
lading data supplied by the issuer of such bill. If any 
irregularity of omission or commission occurs in any way in 
respect to any manifest or bill of lading data, the owner or 
operator of the vessel, aircraft or vehicle, or any party 
responsible for such irregularity, shall be liable for any fine 
or penalty prescribed by law with respect to such irregularity. 
The Customs Service may take appropriate action against any of 
the parties.
    (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.

           *       *       *       *       *       *       *

    (d) Regulations.--
          (1) In general.--The Secretary shall by regulation--
                  (A) specify the form for, and the information 
                and data that must be contained in, the 
                manifest required by subsection (a) or 
                subsection (b)(2); and

           *       *       *       *       *       *       *

                  (C) prescribe the manner of production for, 
                and the delivery of electronic transmittal of 
                the manifest required by subsection (a) or 
                subsection (b)(2); and

           *       *       *       *       *       *       *


SEC. 432. PASSENGER AND CREW MANIFEST INFORMATION REQUIRED FOR LAND, 
                    AIR, OR VESSEL CARRIERS.

    (a) In General.--For every person carrying 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.

           *       *       *       *       *       *       *


SEC. 509. EXAMINATION OF BOOKS AND WITNESSES.

    (a) * * *
    (b) Regulatory Audit Procedures.--
          (1) * * *

           *       *       *       *       *       *       *

          (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.

           *       *       *       *       *       *       *


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 regulation 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 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.

           *       *       *       *       *       *       *


             HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES

           *       *       *       *       *       *       *



             CHAPTER 98--SPECIAL CLASSIFICATION PROVISIONS

           *       *       *       *       *       *       *



     Subchapter IV--Personal Exemptions Extended to Residents and 
                             Nonresidents

           *       *       *       *       *       *       *



----------------------------------------------------------------------------------------------------------------
                                                                       Rates of Duty
                                          ----------------------------------------------------------------------
     Heading/        Article Description                          1
    Subheading                            ------------------------------------------------           2
                                                   General                 Special
----------------------------------------------------------------------------------------------------------------
9804.00.65         Articles, accompanying  ......................  Free..................  Free
                    a person, not over
                    [$400] $800 in
                    aggregate fair retail
                    value in the country
                    of acquisition,
                    including (but only
                    in the case of an
                    individual who has
                    attained the age of
                    21) not more than 1
                    liter of alcoholic
                    beverages and
                    including not more
                    than 200 cigarettes
                    and 100 cigars.

                             *        *        *        *        *        *        *
----------------------------------------------------------------------------------------------------------------

       CUSTOMS PROCEDURAL REFORM AND SIMPLIFICATION ACT OF 1978

           *       *       *       *       *       *       *


    Sec. 301. (a)(1) * * *

           *       *       *       *       *       *       *

    (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).
    (b) Authorization of Appropriations.--
           (1) For noncommercial operations.--There are 
        authorized to be appropriated for the salaries and 
        expenses of the Customs Service that are incurred in 
        noncommercial operations not to exceed the following:
                  [(A) $516,217,000 for fiscal year 1991.
                  [(B) $542,091,000 for fiscal year 1992.]
                  (A) $886,513,000 for fiscal year 2002.
                  (B) $909, 471,000 for fiscal year 2003.
          (2) For commercial operations.--(A) There are 
        authorized to be appropriated for the salaries and 
        expenses of the Customs Service that are incurred in 
        commercial operations not less than the following:
                  [(i) $672,021,000 for fiscal year 1991.
                  [(ii) $705,793,000 for fiscal year 1992.]
                  (i) $1,603,482,000 for fiscal year 2002.
                  (ii) $1,645,009,000 for fiscal year 2003.

           *       *       *       *       *       *       *

          (3) For air interdiction.--There are authorized to be 
        appropriated for the operation (including salaries and 
        expenses) and maintenance of the air interdiction 
        program of the Customs Service not to exceed the 
        following:
                  [(A) $143,047,000 for fiscal year 1991.
                  [(B) $150,199,000 for fiscal year 1992.]
                  (A) $181,860,000 for fiscal year 2002.
                  (B) $186,570,000 for fiscal year 2003.

           *       *       *       *       *       *       *


FOOD STAMP ACT OF 1977

           *       *       *       *       *       *       *


SEC. 6. ELIGIBILITY DISQUALIFICATIONS.

           *       *       *       *       *       *       *


    (o) Work Requirement.--
          (1) Definition of work program.--In this subsection, 
        the term ``work program'' means--
                  (A) a program under [the] title I of the 
                Workforce Investment Act of 1998;
                  (B) a program under [section 236] section 240 
                of the Trade Act of 1974 and

           *       *       *       *       *       *       *


                     INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *


SEC. 62. ADJUSTED GROSS INCOME DEFINED.

      (a) General Rule.--

           *       *       *       *       *       *       *

          (12) Certain required repayments of supplemental 
        unemployment compensation benefits.--The deduction 
        allowed by section 165 for the repayment to a trust 
        described in paragraph (9) or (17) of section 501(c) of 
        supplemental unemployment compensation benefits 
        received from such trust if such repayment is required 
        because of the receipt of [trade readjustment 
        allowances under section 231 or 232] trade adjustment 
        allowances under section 235 or 236 of the Trade Act of 
        1974 (19 U.S.C. 2291 and 2292).

           *       *       *       *       *       *       *


SEC. 3304. APPROVAL OF STATE LAWS.

      (a) Requirements.--

           *       *       *       *       *       *       *

          [(8) compensation shall not be denied to an 
        individual for any week because he is in training with 
        the approval of the State agency (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);]
          (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);

           *       *       *       *       *       *       *


                          UNITED STATES CODE

           *       *       *       *       *       *       *


              TITLE 28.--JUDICIARY AND JUDICIAL PROCEDURE

                    PART IV--JURISDICTION AND VENUE


                CHAPTER 95--COURT OF INTERNATIONAL TRADE


Sec. 1581. Civil actions against the United States and agencies and 
                    officers thereof

    (a) The Court of International Trade shall have exclusive 
jurisdiction of any civil action commenced to contest the 
denial of a protest, in whole or in part, under section 515 of 
the Tariff Act of 1930.

           *       *       *       *       *       *       *

    (d) The Court of International Trade shall have exclusive 
jurisdiction of any civil action commenced to review--
          (1) any final determination of the Secretary of Labor 
        under [section 223] section 231 of the Trade Act of 
        1974 with respect to the eligibility of workers for 
        adjustment assistance under such Act;
          (2) any final determination of the Secretary of 
        Commerce under section 251 of the Trade Act of 1974 
        with respect to the eligibility of a firm for 
        adjustment assistance under such Act; and
          (3) any final determination of the Secretary of 
        Commerce under [section 271] section 273 of the Trade 
        Act of 1974 with respect to the eligibility of a 
        community for adjustment assistance under such Act.

           *       *       *       *       *       *       *


Sec. 2631. Persons entitled to commence a civil action

    (a) A civil action contesting the denial of a protest in 
whole or in part, under section 515 of the Tariff Act of 1930 
may be commenced in the Court of International Trade by the 
person who filed the protest pursuant to section 514 of such 
Act, or by a surety on the transaction which is the subject of 
the protest.

           *       *       *       *       *       *       *

    [(d)(1) A civil action to review any final determination of 
the Secretary of Labor under section 223 of the Trade Act of 
1974 [19 USCS Sec. 2273] with respect to the eligibility of 
workers for adjustment assistance under such Act may be 
commenced in the Court of International Trade by a worker, 
group of workers, certified or recognized union, or authorized 
representative of such worker or group that applies for 
assistance under such Act and is aggrieved by such final 
determination.]
    (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 and is aggrieved by the final determination.
    (2) A civil action to review any final determination of the 
Secretary of Commerce under section 251 of the Trade Act of 
1974 with respect to the eligibility of a firm for adjustment 
assistance under such Act may be commenced in the Court of 
International Trade by a firm or its representative that 
applies for assistance under such Act and is aggrieved by such 
final determination, or by any other interested domestic party 
that is aggrieved by such final determination.
    (3) A civil action to review any final determination of the 
[Secretary of Commerce under section 271] Director of the 
Office of Community Trade Adjustment under section 273 of the 
Trade Act of 1974 with respect to the elibility of a community 
for adjustment assistance under such Act may be commenced in 
the Court of International Trade by a community that applies 
for assistance under such Act and is aggrieved by such final 
determination, or by any other interested domestic party that 
is aggrieved by such final determination.

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Sec. 2636. Time for commencement of action

           *       *       *       *       *       *       *


    (d) A civil action contesting a final determination of the 
Secretary of Labor [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] under section 231 of 
the Trade Act of 1974, a final determination of the Secretary 
of Commerce under section 251 of that Act, or a final 
determination of the Director of the Office of Community Trade 
Adjustment under section 273 of that Act is barred unless 
commenced in accordance with the rules of the Court of 
International Trade within sixty days after the date of notice 
of such determination.

           *       *       *       *       *       *       *


Sec. 2640. Scope and standard of review

           *       *       *       *       *       *       *


    (c) In any civil action commenced in the Court of 
International Trade to review any final determination of the 
Secretary of Labor [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] under section 231 of 
the Trade Act of 1974, a final determination of the Secretary 
of Commerce under section 251 of that Act, or a final 
determination of the Director of the Office of Community Trade 
Adjustment under section 273 of that Act the court shall review 
the matter as specified in section 284 of such act.

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Sec. 2643. Relief

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    (c)(1) Except as provided in paragraphs (2), (3), (4), and 
(5) of this subsection, the Court of International Trade may, 
in addition to the orders specified in subsections (a) and (b) 
of this section, order any other form of relief that is 
appropriate in a civil action, including, but not limited to, 
declaratory judgments, orders of remand, injunctions, and writs 
of mandamus and prohibition.
    (2) The Court of International Trade may not grant an 
injunction or issue a writ of mandamus in any civil action 
commenced to review any final determination of the Secretary of 
Labor [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] under section 231 of the Trade Act of 
1974, a final determination of the Secretary of Commerce under 
section 251 of that Act, or a final determination of the 
Director of the Office of Community Trade Adjustment under 
section 273 of that Act.

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