[Senate Report 114-44]
[From the U.S. Government Publishing Office]


                                                        Calendar No. 75
114th Congress     }                                     {       Report
                                 SENATE
 1st Session       }                                     {       114-44

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



 
AN ORIGINAL BILL TO EXTEND THE TRADE ADJUSTMENT ASSISTANCE PROGRAM, AND 
                           FOR OTHER PURPOSES

                                _______
                                

                  May 12, 2015.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1268]

       Including cost estimate of the Congressional Budget Office

    The Committee on Finance, having considered an original 
bill (S. 1268) to extend the trade adjustment assistance 
program, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                CONTENTS

                                                                   Page
 I. REPORT AND OTHER MATERIALS OF THE COMMITTEE.......................2
        A. Report of the Committee on Finance....................     2
        B. Summary of Congressional Consideration of the Bill....     2
            1. Background........................................     2
            2. Committee Consideration...........................     2
        C. Trade Adjustment Assistance Programs..................     2
            1. Trade Adjustment Assistance for Workers...........     2
            2. Trade Adjustment Assistance for Firms and Farmers.     3
        D. General Description of the Bill.......................     4
            TITLE I: EXTENSION OF THE TRADE ADJUSTMENT ASSISTANCE 
                PROGRAM..........................................     4
II. BUDGETARY IMPACT OF THE BILL......................................9
III.VOTES OF THE COMMITTEE...........................................20

IV. REGULATORY IMPACT OF THE BILL....................................21
 V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............22

             I. REPORT AND OTHER MATERIALS OF THE COMMITTEE


                 A. Report of the Committee on Finance

    The Committee on Finance, having considered an original 
bill (S.1268) to extend the trade adjustment assistance 
program, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

         B. Summary of Congressional Consideration of the Bill


1. Background

    On April 16, 2015 Senator Collins introduced S.1003 on 
behalf of herself and Senator Wyden. On April 16, Senator Wyden 
introduced S.1005.

2. Committee consideration

    The Senate Committee on Finance met in open executive 
session on April 22, 2015 to consider the Chairman's Mark to 
reauthorize the TAA program and to amend provisions of the 
program. The Committee also considered an extension and 
modification of the Health Coverage Tax Credit (HCTC). The 
proposal the Committee considered was based on S.1003 and 
S.1005. During the Committee's consideration of the bill, one 
amendment was offered and was not agreed to. The Committee 
approved the proposal by a vote of 17 ayes and 9 nays.

                C. Trade Adjustment Assistance Programs

    TAA programs are intended to mitigate concentrated negative 
effects that may be experienced by certain industries and 
workers that face increased competition as a result of expanded 
international trade policies. The program benefits and services 
that are available to individual workers are administered by 
the states through agreements between the Secretary of Labor 
and each state Governor. TAA was created as part of the Trade 
Expansion Act of 1962 in order to help companies and workers 
that would be harmed by increased international trade. 
Throughout the years, Congress amended the TAA programs several 
times.

1. Trade Adjustment Assistance for workers

    TAA for workers is the largest TAA program. It directly 
supports displaced workers by providing funding for retraining 
and income support while the worker is enrolled in training, 
unless an eligible worker is provided a waiver. Other benefits 
and services may also be available, including wage supplements 
for older workers. TAA for workers is administered by the U.S. 
Department of Labor (DOL).
    TAA for workers was established by the Trade Expansion Act 
of 1962 (P.L. 87-794). To counter higher program costs in the 
early 1980s, the Omnibus Budget Reconciliation Act of 1981 cut 
benefits and emphasized reemployment measures. The program's 
1988 reauthorization restructured the program to increase 
emphasis on retraining. In the 1990s, the core TAA program was 
supplemented with a separate program that supported workers who 
were adversely affected by increased competition as the result 
of the North American Free Trade Agreement (NAFTA-TAA).
    The Trade Act of 2002 (P.L. 107-210) reauthorized and 
amended TAA alongside other trade laws. The 2002 
reauthorization merged NAFTA-TAA with the main program and 
expanded eligibility to secondary firms (e.g. component parts) 
that were indirectly affected by trade. The 2002 law 
established the HCTC, a refundable tax credit equal to 65% of 
qualified premium costs for TAA-eligible workers who purchased 
qualified health insurance.
    In 2009, TAA was amended as part of the American Recovery 
and Reinvestment Act (ARRA, P.L. 111-5). The ARRA provisions 
expanded TAA eligibility to include service-sector workers who 
face an increase in competitive imports or a shift in 
production to any country, in addition to countries with which 
the U.S. has a free trade agreement. Prior to ARRA, TAA was 
limited to workers who produced ``articles.'' ARRA also 
increased funding for TAA-sponsored training, increased the 
maximum duration of income support, and raised the HCTC to 80% 
of eligible health coverage expenses.
    The ARRA provisions of TAA expired in February 2011 and the 
program reverted back to the levels authorized under the Trade 
Act of 2002. The Trade Adjustment Assistance Extension Act, 
enacted in October 2011 (TAAEA, Title II of P.L. 112-40) 
reinstated many eligibility and benefit provisions to near-ARRA 
levels. Under the provisions enacted in 2011, the HCTC was 
limited to 72.5% of qualified expenses and was scheduled to 
sunset at the end of calendar year 2013.
    TAAEA specified that the TAA program would operate under 
the provisions enacted in 2011 through calendar year 2013. The 
program would then revert to a more narrow set of provisions. 
The changes were implemented as scheduled beginning January 1, 
2014.
    In accordance with the termination provisions in TAAEA, the 
TAA for Workers program was scheduled to be phased out 
beginning January 1, 2015. However, the Consolidated and 
Further Continuing Appropriations Act, 2015 (P.L. 113-235) 
provided full funding for the program and continued operation 
of the program, including the certification of new workers, 
through September 2015.
    TAA for Workers is supported by mandatory appropriations. 
The appropriation level is impacted by statutory caps and 
expected program use. Depending on actual program use, outlays 
may vary substantially from appropriation levels. In fiscal 
year 2015, total funding for all DOL-administered components of 
the program was $710.6 million.

2. Trade Adjustment Assistance for firms and farmers

    In addition to the TAA for workers program, the Trade Act 
of 1974, as amended, also authorized programs for firms and 
farmers. The TAA for Firms and TAA for Farmers programs are 
typically reauthorized alongside the larger TAA for workers 
program. Both were reauthorized by TAAEA in 2011.
    The Trade Adjustment Assistance program for Firms (TAAF) 
was established alongside the Workers program in 1962. The 
Firms program, administered by the U.S. Department of Commerce 
Economic Development Administration (EDA), currently provides 
technical assistance to help trade-impacted firms make 
strategic adjustments that may allow them to remain competitive 
in a global economy. The technical assistance is provided 
through 11 regional Trade Adjustment Assistance Centers 
(TAACs), which operate under cooperative agreements with EDA. 
Funding for TAAF in fiscal year 2015 was $13 million.
    TAA for Farmers was established by the Trade Act of 2002 
(P.L. 107-210). It is administered by the U.S. Department of 
Agriculture (USDA) and is authorized to provide technical 
support and cash benefits to producers of agricultural 
commodities and fishermen who are adversely affected by 
increased imports. TAA for Farmers last received funding in the 
first quarter of fiscal year 2011.

                   D. General Description of the Bill


     TITLE I: EXTENSION OF THE TRADE ADJUSTMENT ASSISTANCE PROGRAM

Section 1--Short title

    Sec. 1. This section contains the short title of the bill, 
the ``Trade Adjustment Assistance (TAA), and for other purposes 
Act of 2015.''

Section 2--Application of provisions relating to Trade Adjustment 
        Assistance

    On January 1, 2014, the TAA program largely reverted to the 
provisions in place prior to the Trade and Globalization 
Adjustment Assistance Act of 2009 (TGAAA). These provisions, 
which are current law, are referred to as ``Reversion 2014.''
    Reversion 2014 maintains the same number of allowable weeks 
for Trade Readjustment Assistance (TRA), but has a different 
eligibility criteria and funding level for worker training. For 
instance, to be eligible for TRA a worker must enroll in 
training within 8 weeks of certification or 16 weeks of layoff, 
whichever is later. Moreover, funding for worker training is 
capped at $220 million with an additional 15% for state-based 
administration. Additional funds are available for job search 
and relocation allowances; however, case management and 
employment services are not included. Currently, a 
manufacturing sector worker is eligible for TAA benefits, and 
that worker must demonstrate a nexus between their job loss and 
a country with which the U.S. has a free trade agreement.
    This section repeals the sunset provision--section 233 of 
the TAAEA of 2011--and reinstates prior law as of December 31, 
2013 as the date of enactment.
    Repealing this provision allows for Section 233 to snap-
back to benefit and service levels as amended in the TAAEA of 
2011. Without repealing this provision, benefit and service 
levels would apply according to Reversion 2014. This amendment 
contains technical and conforming changes to bring the bill 
into compliance with the intended level of benefits and 
services.

Section 3--Extension of Trade Adjustment Assistance Program

    Authorization for TAA lapsed on December 31, 2013 and the 
program has been operating under Reversion 2014. The 
Consolidated and Further Continuing Appropriations Act, 2015 
provided funding for the TAA for Workers program through fiscal 
year 2015.
    This section modifies the authorization termination date 
for TAA for Workers, TAA for Firms, TAA for Farmers, and the 
Reemployment TAA programs from December 31, 2013 to June 30, 
2021.
    The bill would amend section 236(a)(2)(A) of the Trade Act 
to cap total annual funding for training, employment and case 
management services (section 235), job search allowances 
(section 237), and relocation allowances (section 238) at $450 
million for fiscal years 2015 through 2021.
    Because the bill reinstates the amendments from the TAA 
Extension Act of 2011, the following requirements apply to the 
$450 million cap: (i) no more than 10% of the amount provided 
may be spent for Administration; (ii) no less than 5% of the 
amount provided may be spent for case management and employment 
services; (iii) the Department of Labor (DOL) may recapture 
from the states funds remaining unobligated after two or three 
years and distribute such funds to states in need of funds. In 
addition, the modification eliminates individual entitlement to 
job search and relocation allowances, instead granting States 
the discretion to offer such allowance based on fund 
availability.
    The bill would amend section 246(b)(1) to extend the 
termination date for the Reemployment Trade Adjustment 
Assistance (RTAA) from December 31, 2013 to June 30, 2021.
    The bill would amend sections 245(a), 255(a), and 298(a) to 
modify the authorization of appropriations for TAA for Workers 
through June 30, 2021, and for TAA for Firms and Farmers, 
respectively, through fiscal year 2021.
    This section reflects an agreement for a 7-year extension 
of the TAA program for Workers, Firms and Farmers. This is a 
longer-term extension compared to the TAAEA of 2011 (34 
months); the AARA of 2009 (12 months); and the Trade Act of 
2002 (5 years). The 7-year extension captures the projected 
impact of increased imports or the outsourcing of jobs to a 
foreign country from the anticipated conclusion of on-going and 
future negotiations, including the Trans Pacific Partnership 
(TPP) and the Transatlantic Trade and Investment Partnership 
(T-TIP) negotiations.
    The training cap of $450 million is an increase compared to 
the $220 million cap in 2002; however, the cap is a decrease 
compared to 2009 (over $600 million) and 2011 ($575 million).

Section 4--Performance measurement and reporting

    Under current law, section 239(j) of the Trade Act of 1974 
dictates the TAA data reporting requirements for a cooperating 
state. A comprehensive performance accountability report shall 
be made to the Secretary of Labor on a quarterly basis which 
consists of core indicators of performance, the identification 
of additional indicators designed to ensure accuracy and 
verifiability of such data, and a description of efforts made 
to improve outcomes for workers under the TAA program.
    Under current law, section 239(j)(2) of the Trade Act of 
1974 dictates the core indicators to be used for reporting data 
by a cooperating state. Core indicators of performance include 
(i) percentage of workers receiving benefits who are employed 
during the first or second calendar quarter after the worker 
ceases receiving TAA benefits; (ii) the percentage of workers 
employed during the 2 calendar quarters following the earliest 
calendar quarter during which the worker was employed; (iii) 
the average earnings of such workers who are employed during 
the 2 calendar quarters; and (iv) the percentage of workers who 
obtain a recognized postsecondary credential.
    This bill amends section 239(j) of the Trade Act of 1974 in 
order to align it with the performance accountability measures 
and reporting requirements under similar federally funded job 
training programs, such as those implemented under the 
Workforce Innovation and Opportunity Act (WIOA).
    This section requires cooperating states and the Secretary 
of Labor to prepare performance reports on an annual basis, 
which must be available in an easily understandable format 
through electronic means, and requires the Department of Labor 
to make available certain performance data.
    This bill amends section 249(B) of the Trade Act of 1974 to 
make technical and conforming changes to information on workers 
for the collection and publication of data and reports.
    This bill amends section 247 of the Trade Act of 1974 to 
include a new definition for a recognized postsecondary 
credential, which includes industry-recognized certificates/
certification, a certificate of completion of an 
apprenticeship, a license recognized by a state or Federal 
Government, or an association or baccalaureate degree, which 
also aligns with similar provisions in WIOA.
    In a 2012 U.S. Government Accountability Office (GAO) 
Report, several state workforce officials noted that data from 
performance measures did not adequately reflect the program's 
effect on its participants, and further commented that these 
measures were not particularly useful for improving program 
management.
    Valuable information on TAA and its impact was not captured 
by the criteria set forth in the current data reporting 
requirement. This, in turn, inhibited Congress' ability to 
perform its oversight responsibilities, to refine and improve 
the program, its performance, and worker outcomes. The 
modification to the reporting requirement seek to remedy this 
problem. Additionally, the new reporting requirement enhances 
the accountability of the TAA program by making available all 
performance measures collected annually.

Section 5--Applicability of Trade Adjustment Assistance provisions

    This section establishes the applicable provisions of TAA 
for Workers who file petitions on or after January 1, 2014 and 
prior to the date of enactment of this bill. Such gap-period 
workers who were denied benefits are to be reconsidered for 
and, if qualified, receive benefits and services in accordance 
with this bill. Pending applicants that fall within this gap-
period will also be considered under the provisions of this 
bill. The section also narrows the eligibility window for 
certified workers to 90 days after the date of the enactment of 
this bill.
    In addition, this section provides similar eligibility 
determination and reconsideration rules for firms under the TAA 
for Firms program.

Section 6--Sunset provisions

    This section creates a sunset provision requiring the TAA 
program to revert to the January 1, 2014 parameters after June 
30, 2021. This bill amends section 231(c) of the Trade Act of 
1974 reverting the TAA for Workers, Alternative Trade 
Adjustment Assistance (ATAA), TAA for Firms, and TAA for 
Farmers programs back to the level in effect January 1, 2014 as 
of July 1, 2021.
    While beneficiaries certified for benefits prior to July 1, 
2021 will continue to receive benefits to the extent funds are 
available and the recipient is eligible to receive benefits. 
The authorization for TAA for Workers, ATAA, TAA for Firms, and 
TAA for Farmers will terminate on June 30, 2022.

Section 7: Extension and modifications of the Health Coverage Tax 
        Credit

    In the case of an eligible individual, an advanceable, 
refundable tax credit is provided for 72.5 percent of the 
individual's premiums for qualified health insurance of the 
individual and qualifying family members for each eligible 
coverage month beginning in the taxable year.\1\ The credit is 
commonly referred to as the Health Coverage Tax Credit (HCTC). 
The credit is available only with respect to amounts paid by 
the individual for the qualified health insurance.
---------------------------------------------------------------------------
    \1\Sec. 35. Qualifying family members are the individual's spouse 
and any dependent for whom the individual is entitled to claim a 
dependency exemption. Any individual who has certain specified coverage 
is not a qualifying family member. Except where otherwise specified, 
for purposes of this explanation of section 7 of H.R. 1892, all section 
references are to the Internal Revenue Code of 1986, as amended (the 
``Code'').
---------------------------------------------------------------------------
    Eligibility for the credit is determined on a monthly 
basis. In general, an eligible coverage month is any month if 
(1) the month begins before January 1, 2014, and (2) as of the 
first day of the month, the individual is an eligible 
individual, is covered by qualified health insurance, the 
premium for which is paid by the individual, does not have 
other specified coverage, and is not imprisoned under Federal, 
State, or local authority. In the case of a joint return, the 
eligibility requirements are met if at least one spouse 
satisfies the requirements.
    An eligible individual is an individual who is (1) an 
eligible TAA recipient, (2) an eligible alternative TAA 
recipient, or (3) an eligible Pension Benefit Guaranty 
Corporation (PBGC) pension recipient.
    The provision amends the definition of eligible coverage 
month for HCTC purposes to include months beginning before 
January 1, 2020, if the requirements for an eligible coverage 
month are otherwise met.\2\
---------------------------------------------------------------------------
    \2\The bill generally also provides for extension of certain 
expired provisions of the Trade Act of 1974, Pub. L. No. 93-618, as 
amended, including provisions related to individuals eligible for trade 
adjustment assistance.
---------------------------------------------------------------------------
    In order to coordinate eligibility for the premium 
assistance credit with eligibility for the HCTC, under the 
provision, to be eligible for the HCTC for any eligible 
coverage month during a taxable year, the eligible individual 
must elect allowance of the HCTC. Further, except as the 
Secretary of Treasury may provide, the election applies for 
that coverage month and all subsequent eligible coverage months 
during the taxable year. The election also must be made no 
later than the due date, with any extension, for filing his or 
her income tax return for the year, and is irrevocable. 
Further, the period for assessing any deficiency attributable 
to the election (or revocation of the election, if permitted) 
does not expire before one year after the date on which the 
Secretary of Treasury is notified of the election (or 
revocation). The taxpayer is not entitled to the premium 
assistance credit for any coverage month for which the 
individual elects the HCTC.
    The provision eliminates the 30-day requirement as a 
requirement for individual health insurance to be qualified 
health insurance for purposes of the HCTC, but the provision 
adds a requirement that the individual health insurance not be 
purchased through an American Health Benefit Exchange, pursuant 
to the Affordable Care Act. The provision otherwise extends 
pre-2014 law for qualified health insurance with regard to the 
Health Coverage Tax Credit, including the rules for State-based 
coverage, and the treatment of COBRA continuation coverage and 
coverage under certain Voluntary Employees' Beneficiary 
Associations as qualified health insurance.
    The Secretaries of the Treasury, Health and Human Services, 
and Labor and the Director of Pension Benefit Guaranty 
Corporation are directed to carry out programs of public 
outreach, including on the Internet, to inform potential HCTC 
eligible individuals of the extension of HCTC availability and 
the availability of the election to claim such credit 
retroactively for coverage months beginning after December 31, 
2013.
    The legislation extends the HCTC through 2019 so that 
health coverage continues to be affordable for eligible TAA 
recipients, alternative TAA recipients, and PBGC recipients, as 
under pre-2014 law.
    The provision is generally effective for coverage months 
beginning after December 31, 2013. For any taxable year 
beginning after December 31, 2013, but before the date of 
enactment of the provision, the election to claim the HCTC may 
be made any time on or after the date of enactment and before 
the expiration of the 3-year period of limitation with respect 
to such taxable year,\3\ and may be made on an amended income 
tax return. The requirement that, in order to be qualified 
health insurance, individual health insurance not be purchased 
through an American Health Benefit Exchange, pursuant to the 
Affordable Care Act, is effective for coverage months in 
taxable years beginning after December 31, 2015.
---------------------------------------------------------------------------
    \3\Section 6511(a).
---------------------------------------------------------------------------

Section 8: Customs user fees

    Under current law, the authority to collect merchandise 
processing fees will expire at the end of fiscal year 2024. The 
legislation would permit these fees to be collected during the 
period beginning July 29, 2025, and ending September 30, 2025. 
For merchandise imported from July 15, 2025, through September 
30, 2025, the bill would raise the merchandise processing fee 
from 0.21 percent to 0.3464 percent of the value of the goods.
    Under current law, authority to collect Customs COBRA 
(Consolidated Omnibus Budget Reconciliation Act) fees will 
expire after September 30, 2024. These fees are charged for the 
entry into the United States of certain vehicles, vessels, 
persons, and other entities and items.

Section 9: Child tax credit not refundable for taxpayers electing to 
        exclude foreign earned income from tax

    Under current law, a refundable child tax credit of up to 
$1,000 per qualifying child is available to taxpayers, with the 
amount of the credit phasing out for individuals with income 
above certain thresholds. The legislation would provide that 
taxpayers who elect to exclude from gross income for a taxable 
year any amount of foreign earned income or foreign housing 
costs may not claim the refundable portion of the child tax 
credit for the taxable year.

Section 10: Time for payment of corporate estimated taxes

    The bill would shift payments of corporate estimated taxes 
between fiscal years 2020 and 2021. For corporations with at 
least $1 billion in assets, the bill would increase the portion 
of corporate estimated payments due from July through September 
in 2020. JCT estimates that those changes would increase 
revenues by $2.0 billion in 2020 and reduce revenues by the 
same amount in 2021.

Section 11: Coverage and payment for renal dialysis services for 
        individuals with acute kidney injury

    Under current Medicare law, freestanding dialysis 
facilities--including facilities owned by a hospital--may treat 
patients with end-stage renal disease, but not people with 
acute kidney injury (AKI). Those free-standing facilities are 
paid an average of about $240 per dialysis treatment.
    Under current law, Medicare beneficiaries with AKI may 
receive dialysis services from hospital outpatient departments 
(which are distinct from hospital-owned dialysis facilities). 
Those facilities are paid according to the hospital-outpatient 
prospective payment and the cost is about $600 per dialysis 
treatment.
    Under the bill, freestanding facilities would be allowed to 
treat beneficiaries with AKI, and would be paid at the rate for 
freestanding facilities.

Section 12: Modification of the Medicare sequester for fiscal year 2024

    Under current law, the Medicare sequestration for fiscal 
year 2024 is -4.0 percent for April 2024 through September 2024 
and zero percent for October 2024 through March 2025 (In 
Medicare, sequestration is applicable to spending on an April 
through March basis, resulting in half of the spending 
reductions occurring in the following fiscal year).
    The bill would modify sequestration of Medicare spending 
for the second half of fiscal year 2024 (October 2024 through 
March 2025) by changing the sequester from 0.0 percent to -0.25 
percent.

                    II. BUDGETARY IMPACT OF THE BILL


                                  TAA


                          COMMITTEE ESTIMATES

    In compliance with 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 revenue 
provisions of the bill as reported.
    The bill, as reported, is estimated to have the following 
effect on Federal budget receipts for fiscal years 2015-2025:

                 BUDGET AUTHORITY AND TAX EXPENDITURES

Budget authority

    In compliance with section 308(a)(1) of the Congressional 
Budget and Impoundment Control Act of 1974 (``Budget Act''),\4\ 
the Committee states that the [revenue] provisions of the bill 
as reported involve no new or increased budget authority.
---------------------------------------------------------------------------
    \4\Pub. L. No. 93-344.
---------------------------------------------------------------------------

Tax expenditures

    In compliance with section 308(a)(1) of the Budget Act, the 
Committee states that the provision of the bill relating to the 
Health Coverage Tax Credit involves increased tax expenditures 
and the provision of the bill relating to the child tax credit 
involves reduced tax expenditures (see revenue table in part 
A., above).

                                                       May 5, 2015.
Hon. Orrin G. Hatch,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the Trade Adjustment 
Assistance Reauthorization Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Christina 
Hawley Anthony.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

S. 1268--Trade Adjustment Assistance Reauthorization Act of 2015

    Summary: The Trade Adjustment Assistance Reauthorization 
Act of 2015 would temporarily expand coverage of Trade 
Adjustment Assistance (TAA) for Workers through June 2021, and 
reauthorize the program through June 2022. The bill also would 
authorize appropriations for other trade adjustment assistance 
programs for farmers and firms through 2021. Additionally, the 
bill would extend the health coverage tax credit (HCTC) through 
2019. Finally, it would extend the authority to collect and 
increase the rate of certain customs user fees, and make 
changes to the Medicare program.
    CBO and the staff of the Joint Committee on Taxation (JCT) 
estimate that enacting the bill would increase direct spending 
by $7 million in 2015 and $1.8 billion over the 2015-2020 
period, but would reduce direct spending by $174 million over 
the 2015-2025 period. Enacting the bill also would decrease 
revenues by $86 million over the 2015-2025 period, JCT 
estimates.
    On net, CBO and JCT estimate that enacting the bill would 
reduce deficits by $88 million over the 2015-2025 period. Pay-
as-you-go procedures apply because enacting the legislation 
would affect direct spending and revenues.
    The bill would increase spending subject to appropriation 
by $636 million over the 2015-2015 period, assuming 
appropriation of the authorized amounts.
    CBO has determined that the nontax provisions of the bill 
contain no intergovernmental mandates as defined in the 
Unfunded Mandates Reform Act (UMRA). Any costs incurred by 
state governments to administer trade adjustment assistance 
programs would result from participation in voluntary federal 
programs.
    CBO has determined that the nontax provisions of the bill 
contain private-sector mandates on entities required to pay 
merchandise processing fees. CBO estimates the aggregate cost 
of the mandates would exceed the annual threshold established 
in UMRA for private-sector mandates ($154 million in 2015, 
adjusted annually for inflation). JCT has determined that the 
tax provisions of the bill contain no intergovernmental or 
private-sector mandates.
    Estimated cost to the Federal Government: The estimated 
budgetary effects of the Trade Adjustment Assistance 
Reauthorization Act of 2015 are summarized in Table 1. The 
costs of this legislation fall within budget functions 350 
(agriculture), 450 (community and regional development), 500 
(education, training, employment, and social services), 550 
(health), 570 (Medicare), 600 (income security), and 750 
(administration of justice).

                                                 TABLE 1. SUMMARY OF ESTIMATED BUDGETARY EFFECTS OF THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                2015      2016      2017      2018      2019      2020      2021      2022      2023      2024      2025    2015-2020  2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  CHANGES IN DIRECT SPENDING\a\
 
Estimated Budget Authority..................................        38       445       389       403       421       406       356       -11       -55       -66    -2,500      2,102       -174
Estimated Outlays...........................................         7       175       384       400       416       404       374       214        18       -66    -2,500      1,786       -174
 
                                                                                       CHANGES IN REVENUES
 
Estimated Revenues..........................................         0       -42       -25        -7        -7     1,975    -1,980         0         0         0         0      1,894        -86
 
                                                    NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
 
Impact on Deficit...........................................         7       217       409       407       423    -1,571     2,354       214        18       -66    -2,500       -108        -88
 
                                                                          CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Authorization Level.........................................         0       106       106       106       106       106       106         0         0         0         0        530        636
Estimated Outlays...........................................         0         6        25        83       102       106       106       100        81        23         4        322       636
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: For direct spending, negative numbers indicate a decrease in outlays; for revenues, negative numbers indicate a reduction in revenues.
\a\On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period
  of time. Because of interactions among the provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend
  those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different.

    Basis of estimate: CBO and JCT assume that the Trade 
Adjustment Assistance Reauthorization Act of 2015 will be 
enacted by July 1, 2015. Because provisions of this bill that 
would extend the authority to collect merchandise processing 
fees for a specific period of time would interact with similar 
provisions in two other bills approved by the Senate Committee 
on Finance on April 22, 2015, CBO assumes that the three bills 
will be enacted in the order that would extend those fees 
chronologically. If the bills are enacted in a different order, 
the estimated costs of this bill would be different.

Direct spending

    CBO and the staff of the Joint Committee on Taxation 
estimate that enacting the bill would increase outlays by $7 
million in fiscal year 2015 and $1.8 billion over the 2015-2020 
period, but would reduce net direct spending by $174 million 
over the 2015-2025 period. Increased spending for TAA for 
Workers and the health coverage tax credit would be more than 
offset by: extensions to the authority to collect customs user 
fees (which are reflected in the federal budget as offsetting 
receipts and are treated as reductions indirect spending); 
changes in eligibility for the refundable portion of the child 
tax credit (the refundable portion of tax credits are treated 
as direct spending in the budget); a change in coverage for 
dialysis services paid for by Medicare; and a modification to 
sequestration for Medicare. (See Table 2).
    TAA for Workers. TAA for Workers provides job training, 
extended unemployment compensation, and wage insurance benefits 
to workers who lose their jobs because of international trade. 
Although the authorization for TAA for Workers expired at the 
end of December 2014, it continues to operate at the so-called 
``Reversion 2014'' levels because the Congress provided a full-
year appropriation for fiscal year 2015. Under CBO's baseline, 
outlays for those benefits total $575 million in fiscal year 
2015. Consistent with the rules for budget projections in 
section 257 of the Balanced Budget and Emergency Deficit 
Control Act of 1985, most of the costs of extending TAA for 
Workers at its current level are included in CBO's baseline and 
are therefore not included in the costs attributable to the 
proposed legislation. The spending assumed to continue in CBO's 
baseline totals $8.9 billion over the 2016-2025 period.
    The bill would temporarily extend certain provisions of the 
TAA for Workers program that originally were enacted in 2009 
and expired December 31, 2013. Among other things, the bill 
would extend coverage to workers in service industries. (Under 
current law, only workers involved in manufacturing can qualify 
for benefits under the TAA for Workers program, though service 
workers were temporarily covered through December 2013.) 
Beginning in January 2014, the program reverted to the way it 
operated before the 2009 amendments were enacted. The bill 
would reinstate the expanded coverage that expired at the end 
of December 2013, and increase funding for training; those 
changes would extend through June 2021. Under the bill, TAA for 
Workers would then return to the level at which it currently 
operates for one year and expire at the end of June 2022.

                                                            TABLE 2. ESTIMATED EFFECTS OF THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                2015      2016      2017      2018      2019      2020      2021      2022      2023      2024      2025    2015-2020  2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   CHANGES IN DIRECT SPENDING
Trade Adjustment Assistance for Workers:
    Estimated Budget Authority..............................        38       478       425       430       441       446       412        45         0         0         0      2,528      2,715
    Estimated Outlays.......................................         7       208       420       427       436       444       430       270        73         0         0      1,942      2,715
Health Coverage Tax Credit:
    Estimated Budget Authority..............................         0         5        20        28        28         7         0         0         0         0         0         87         87
    Estimated Outlays.......................................         0         5        20        28        28         7         0         0         0         0         0         87         87
Customs User Fees\a\
    Estimated Budget Authority..............................         0         0         0         0         0         0         0         0         0         0    -1,734          0     -1,734
    Estimated Outlays.......................................         0         0         0         0         0         0         0         0         0         0    -1,734          0     -1,734
Child Tax Credit:
    Estimated Budget Authority..............................         0       -38       -36       -35       -28       -27       -26       -26       -26       -26       -26       -165       -293
    Estimated Outlays.......................................         0       -38       -36       -35       -28       -27       -26       -26       -25       -26       -26       -165       -293
Coverage and Payment for Dialysis Services:
    Estimated Budget Authority..............................         0         0       -20       -20       -20       -20       -30       -30       -30       -40       -40        -80       -250
    Estimated Outlays.......................................         0         0       -20       -20       -20       -20       -30       -30       -30       -40       -40        -80       -250
Medicare Sequestration:
    Estimated Budget Authority..............................         0         0         0         0         0         0         0         0         0         0      -700          0       -700
    Estimated Outlays.......................................         0         0         0         0         0         0         0         0         0         0      -700          0       -700
    Total Changes:
        Estimated Budget Authority..........................        38       445       389       403       421       406       356       -11       -55       -66    -2,500      2,102       -174
        Estimated Outlays...................................         7       175       384       400       416       404       374       214        18       -66    -2,500      1,786      -174
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
\a\On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period
  of time. Because of interactions among the provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend
  those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different.

    CBO estimates that the legislation would increase costs for 
TAA for Workers by $7 million in 2015 and $2.7 billion over the 
2015-2025 period, relative to CBO's baseline projections. The 
details of those costs are as follows:
     Expanded Coverage. The bill would restore the 
eligibility criteria that expired on December 31, 2013. Most 
notably, the bill would allow individuals in the service sector 
who lose their jobs as the result of either increased imports 
of similar services or shifts in production of those services 
to apply for assistance. CBO estimates that the changes in 
coverage would increase the number of people certified as 
eligible to receive TAA for Workers by an average of 35,000 
annually. Those certified workers would be eligible for 
extended unemployment benefits. Under CBO's baseline, the cost 
of those benefits total $7.0 billion over the 2015-2025 period. 
Relative to CBO's baseline projections, enacting the bill would 
increase direct spending for those extended unemployment 
benefits by $1.1 billion over the 2015-2025 period, CBO 
estimates.
     Increased Funding for Training. Under current law, 
funding for the training benefits under TAA for Workers is 
capped at $220 million annually. Uncapped funding is also 
available for administration and other benefits to assist 
affected workers with costs related to looking for work and for 
relocating, if necessary, for reemployment. Under CBO's 
baseline, costs for training, administration, and other 
benefits total $2.8 billion over the 2015-2025 period. The bill 
would increase the cap on training benefits from $220 million 
annually to $450 million through June2021, thus allowing the 
people who would be newly certified under the bill to receive 
training benefits. Under the bill, administrative and other 
expenses would be subject to the new higher cap. Relative to 
CBO's baseline projections, direct spending for training and 
administrative expenses would increase by $1.2 billion over the 
2015-2025 period, CBO estimates.
     Extended Wage Insurance. Trade Adjustment 
Assistance for Workers currently offers a wage insurance 
program as an alternative to the extended unemployment benefits 
offered under the regular TAA program. That alternative program 
pays a wage subsidy to workers who are age 50 or older and do 
not earn more than $50,000 annually in their new employment if 
they are reemployed at a lower wage. Benefit payments may total 
50 percent of the difference between the old and new wages, 
with a maximum of $10,000 paid over a period of up to two 
years. Under CBO's baseline, the wage insurance program will 
cost $45 million in 2015. Like the other programs authorized 
under TAA for Workers, the wage insurance program expired at 
the end of December, 2014, and is currently operating under a 
full-year appropriation through fiscal year 2015. However, 
under the rules that govern CBO's baseline projections, and 
unlike the extended unemployment and training benefits, the 
costs of the wage insurance program fall out of CBO's 
projections beginning in fiscal year 2016. By authorizing the 
wage insurance program through June 2022, the bill would 
increase direct spending by $0.4 billion over the 2015-2025 
period, CBO estimates.
    Health Coverage Tax Credit. The bill would extend the 
health coverage tax credit, which expired on December 31, 2013, 
from January 1, 2014, through December 31, 2019. It would set 
the credit rate at 72.5 percent of premiums paid for qualifying 
health insurance, and provide that a person cannot claim both 
the HCTC and the premium assistance credit provided for in 
section 36B of the Internal Revenue Code for the same coverage 
month. JCT estimates those changes would increase direct 
spending by $87 million over the 2015-2025 period. The changes 
also would decrease revenues, as discussed below under the 
heading ``Revenues.''
    Customs User Fees. Under current law, the authority to 
collect merchandise processing fees will expire at the end of 
fiscal year 2024. The legislation would permit these fees to be 
collected during the period beginning July 29, 2025, and ending 
September 30, 2025. For merchandise imported from July 15, 
2025, through September 30, 2025, the bill would raise the 
merchandise processing fee from 0.21 percent to 0.3464 percent 
of the value of the goods. CBO estimates those actions would 
increase offsetting receipts by about $700 million in 2025. To 
project collections of merchandise processing fees, CBO assumes 
that the fees collected in future years will grow at the same 
rate seen in recent years about 5 percent. In 2014 collections 
from the merchandise processing fees totaled $2.3 billion. By 
2024, CBO estimates those collections will total about $2.7 
billion under current law. CBO expects that the proposed 
increase in the fee rate would have a very minor effect on the 
value of goods entering the United States.
    Under current law, authority to collect Customs COBRA 
(Consolidated Omnibus Budget Reconciliation Act) fees will 
expire after September 30, 2024. These fees are charged for the 
entry into the United States of certain vehicles, vessels, 
persons, and other entities and items. The bill would extend 
the authority to collect those fees through September 30, 2025. 
CBO estimates that those changes would increase offsetting 
receipts by about $1 billion in 2025.
    COBRA fees collected by Customs and Border Protection (CBP) 
are spent by the agency to fund certain operations. Under the 
rules CBO uses to set its baseline spending projections, 
authority for CBP to spend COBRA fees is assumed to continue 
after the expiration date for the fees in 2024. Those same 
baseline rules, however, do not provide for the corresponding 
assumption that the collection of the COBRA fees be assumed to 
continue beyond their expiration in 2024. Thus, extending the 
authority to collect COBRA fees reduces future deficits 
relative to CBO's baseline projections.
    Child Tax Credit. Under current law, a refundable child tax 
credit of up to $1,000 per qualifying child is available to 
taxpayers, with the amount of the credit phasing out for 
individuals with income above certain thresholds. The 
legislation would provide that taxpayers who elect to exclude 
from gross income for a taxable year any amount of foreign 
earned income or foreign housing costs may not claim the 
refundable portion of the child tax credit for the taxable 
year. JCT estimates that provision would reduce direct spending 
by $293 million over the 2015-2025 period.
    Coverage and Payment for Dialysis Services. Under current 
Medicare law, freestanding dialysis facilities--including 
facilities owned by a hospital--may treat patients with end-
stage renal disease, but not people with acute kidney injury 
(AKI). Those free-standing facilities are paid an average of 
about $240 per dialysis treatment.
    Under current law, Medicare beneficiaries with AKI may 
receive dialysis services from hospital outpatient departments 
(which are distinct from hospital-owned dialysis facilities). 
Those facilities are paid according to the hospital-outpatient 
prospective payment and the cost is about $600 per dialysis 
treatment.
    Under the bill, freestanding facilities would be allowed to 
treat beneficiaries with AKI, and would be paid at the rate for 
freestanding facilities. CBO estimates that allowing those 
lower-priced dialysis services to be furnished to beneficiaries 
with AKI would save about $250 million over the 2015-2025 
period.
    Medicare Sequestration. The bill would modify sequestration 
of Medicare spending for fiscal year 2024. In Medicare, 
sequestration is applicable to spending on an April through 
March basis, resulting in half of the spending reductions 
occurring in the following fiscal year. Under current law, the 
Medicare sequestration for fiscal year 2024 is -4.0 percent for 
April 2024 through September 2024 and zero percent for October 
2024 through March 2025. The bill would change the second half 
of the fiscal year 2024 sequestration (October 2024 through 
March 2025) to -0.25 percent. CBO estimates that change would 
reduce direct spending by $700 million in fiscal year 2025.

Revenues

    Enacting the Trade Adjustment Assistance Reauthorization 
Act of 2015 would increase revenues by $1.9 billion over the 
2015-2020 period and decrease them by $86 million over the 
2015-2025 period.
    Health Coverage Tax Credit. As discussed above in the 
section on direct spending, the bill would extend the HCTC 
through December 31, 2019. JCT estimates those changes would 
decrease revenues by $86 million over the 2015-2025 period.
    Shift in Payment of Corporate Estimated Tax. The bill would 
shift payments of corporate estimated taxes between fiscal 
years 2020 and 2021. For corporations with at least $1 billion 
in assets, the bill would increase the portion of corporate 
estimated payments due from July through September in 2020. JCT 
estimates that those changes would increase revenues by $2.0 
billion in 2020 and reduce revenues by the same amount in 2021.

Spending subject to appropriation

    The trade Adjustment Assistance Reauthorization Act of 2015 
would authorize appropriations for TAA for Farmers and TAA for 
Firms for fiscal years 2016 through 2021. TAA for Farmers did 
not receive an appropriation for 2015, while TAA for firms 
received appropriations totaling about $13 million for 2015.
    TAA for Farmers. The bill would authorize the appropriation 
of $90 million a year over the 2016-2021 period to provide TAA 
for Farmers. CBO estimates this provision would cost $450 
million over the 2016-2020 period, and $90 million after 2020, 
assuming appropriation of the authorized amounts.
    TAA for Farmers provides technical and financial assistance 
to certain eligible agricultural producers to develop and 
implement plans to improve the competitiveness and 
profitability of their businesses. Those eligible for the 
program have produced agricultural commodities that have 
experienced a decline in market share or price because of 
imported commodities.
    TAA for Firms. The bill would authorize the appropriation 
of $16 million a year over the 2016-2021 period for TAA for 
Firms. CBO estimates that that implementing this provision 
would cost about $41 million over the 2016-2020 period and $55 
million after 2020, assuming appropriation of authorized 
amounts.
    TAA for Firms provides technical assistance to help U.S. 
firms become more competitive in the global market. The 
Economic Development Administration (EDA) within the Department 
of Commerce has entered into cooperative agreements with 11 
regional Trade Adjustment Assistance Centers which provide 
assistance to firms to design and implement business recovery 
plans that the EDA must approve.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in Table 3.

             TABLE 3. CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FINANCE ON APRIL 22, 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                2015      2016      2017      2018      2019      2020      2021      2022      2023      2024      2025    2015-2020  2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         NET INCREASE OR DECREASE (-) IN THE DEFICIT\a\
 
Statutory Pay-As-You-Go Impact..............................         7       217       409       407       423    -1,571     2,354       214        18       -66    -2,500       -108        -88
Memorandum:
    Changes in Outlays......................................         7       175       384       400       416       404       374       214        18       -66    -2,500      1,786       -174
    Changes in Revenues.....................................         0       -42       -25        -7        -7     1,975    -1,980         0         0         0         0      1,894       -86
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: For direct spending, negative numbers indicate a decrease in outlays; for revenues, negative numbers indicate a reduction in revenues.
\a\On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period
  of time. Because of interactions among the provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend
  those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different.

    Estimated impact on state, local, and tribal governments: 
CBO has determined that the nontax provisions of the bill 
contain no intergovernmental mandates as defined in UMRA. Any 
costs incurred by state governments to administer trade 
adjustment assistance programs would result from participation 
in voluntary federal programs. JCT has determined that the tax 
provisions of the bill also contain no intergovernmental 
mandates.
    Estimated impact on the private sector: CBO has determined 
that the nontax provisions of the Trade Adjustment Assistance 
Reauthorization Act of 2015 would impose private-sector 
mandates, as defined in UMRA, on entities required to pay 
merchandise processing fees. The bill would extend those fees 
through September 30, 2025 and raise the fee rate beginning 
July 15, 2025 and ending September 30, 2025. CBO estimates that 
the aggregate costs of the mandates would exceed the annual 
threshold established in UMRA for private-sector mandates ($154 
million in 2015, adjusted annually for inflation).
    JCT has determined that the tax provisions of the bill 
contain no private-sector mandates as defined in UMRA.
    Previous CBO estimate: On May 4, 2015, CBO transmitted a 
cost estimate of the budgetary effects of H.R. 1892, as ordered 
reported by the House Committee on Ways and Means on April 23, 
2015. The costs of the Trade Adjustment Assistance Act of 2015 
are the same as the costs shown in the estimate for H.R. 1892.
    Estimate prepared by: Federal Costs: Christina Hawley 
Anthony--Trade Adjustment Assistance for Workers; Mark 
Grabowicz--Customs User Fees; Lara Robillard and Jamease 
Miles--Dialysis Services; Lori Housman--Medicare Sequestration; 
Dave Hull--TAA for Farmers; Martin von Gnechten--TAA for Firms; 
Mark Booth and Pamela Greene--Federal Revenues; Impact on 
State, Local, and Tribal Governments: Jon Sperl; Impact on the 
Private Sector: Paige Piper/Bach.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                      III. VOTES OF THE COMMITTEE

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

                       MOTION TO REPORT THE BILL

    The original bill to extend the Trade Adjustment and 
Assistance (TAA) program, and for other purposes, and to amend 
the Internal Revenue Code of 1986 to expand and modify the 
credit for health insurance costs of certain eligible 
individuals, and for other purposes was ordered favorably 
reported by a roll call vote of 17 ayes and 9 nays on April 22, 
2015. The vote, with a quorum present, was as follows (proxy 
votes are not counted in the total vote on a motion to order a 
bill reported):
    Ayes.--Senators Burr (proxy), Portman, Toomey, Coats, 
Heller, Wyden, Schumer, Stabenow, Cantwell, Nelson, Menendez, 
Carper, Cardin, Brown (proxy), Bennet, Casey (proxy), Warner.
    Nays.--Senators Hatch, Grassley, Crapo, Roberts, Enzi, 
Cornyn (proxy), Thune, Isakson, Scott (proxy).

                           VOTE ON AMENDMENT

    (1) An amendment by Senator Brown (en bloc) to increase 
funding levels for TAA Workers to $575 million; expand TAA 
eligibility to public sector workers; increase funding levels 
for TAA Firms from $16 million to $50 million, was defeated by 
a roll call vote, 13 ayes and 13 nays.
    Ayes.--Portman, Wyden, Schumer (proxy), Stabenow, Cantwell, 
Nelson, Menendez, Carper, Cardin, Brown, Bennet, Casey (proxy), 
Warner.
    Nays.--Hatch, Grassley, Crapo, Roberts, Enzi, Cornyn 
(proxy), Thune, Burr (proxy), Isakson, Toomey, Coats, Heller, 
Scott (proxy).

                   IV. REGULATORY IMPACT OF THE BILL


                      TRADE ADJUSTMENT ASSISTANCE

    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 number of amendments extending the trade 
adjustment assistance programs. Overall, the bill does not 
result in an increase in regulatory burdens for States, 
municipalities or business.
    Responsibilities 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, municipalities and business.
    States--States play a critical role in implementing the 
trade adjustment assistance program. Under existing law once a 
petition is certified by the Department of Labor's Employment 
and Training Administration (ETA), state workforce agency staff 
members contact the employer of the adversely affected firm to 
offer services and obtain a list of affected workers. The state 
agency then contacts the workers on the list and invites them 
in for services and to make a determination of individual TAA 
eligibility. Services include: (i) training; (ii) trade 
readjustment allowances (TRA); (iii) waivers; (iv) alternative 
trade adjustment assistance for older workers (ATAA); (v) case 
management and reemployment services; and (vi) job search and 
relocation allowances.
    The reported bill allows for the continuation of the 
state's role and imposes no additional regulatory burden.
    Municipalities--There is no regulatory impact of the bill 
on municipalities.
    Businesses--The reported bill will not increase the 
regulatory burden and does not impose additional paperwork 
requirements on businesses.
    Personal Privacy--The reported bill does not affect the 
personal privacy of individuals.
    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. 1003 as approved by the 
Committee on April 22, 2015. In accordance with the 
requirements of Pub. L. No. 104-04, the Committee has 
determined that the bill does not contain intergovernmental 
mandates as defined in the UMRA.

                       HEALTH COVERAGE TAX CREDIT

Impact on individuals and businesses, personal privacy and paperwork

    The HCTC provisions of the bill are not expected to impose 
additional administrative requirements or regulatory burdens on 
individuals or businesses. The HCTC provisions of the bill do 
not impact personal privacy.

Unfunded Mandates Statement

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995.\5\
---------------------------------------------------------------------------
    \5\Pub. L. No. 104-4.
---------------------------------------------------------------------------
    The Committee has determined that the HCTC provisions of 
the bill do not contain Federal mandates on the private sector. 
The Committee has determined that the HCTC provisions of the 
bill do not impose a Federal intergovernmental mandate on 
State, local, or tribal governments.

Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service Reform and 
Restructuring Act of 1998 (``IRS Reform Act'')\6\ requires the 
staff of the Joint Committee on Taxation (in consultation with 
the Internal Revenue Service and the Treasury Department) to 
provide a tax complexity analysis. The complexity analysis is 
required for all legislation reported by the Senate Committee 
on Finance, the House Committee on Ways and Means, or any 
committee of conference if the legislation includes a provision 
that directly or indirectly amends the Internal Revenue Code 
and has widespread applicability to individuals or small 
businesses. For each such provision identified by the staff of 
the Joint Committee on Taxation a summary description of the 
provision is provided along with an estimate of the number and 
type of affected taxpayers, and a discussion regarding the 
relevant complexity and administrative issues.
---------------------------------------------------------------------------
    \6\Pub. L. No. 105-206.
---------------------------------------------------------------------------
    The staff of the Joint Committee on Taxation has determined 
that a complexity analysis is not required under section 
4022(b) of the IRS Reform Act because the bill contains no 
provisions that amend the Internal Revenue Code and that have 
``widespread applicability'' to individuals or small 
businesses, within the meaning of the rule.

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

    In the opinion of the Committee, in order to expedite the 
business of the Senate, it is necessary to dispense with the 
requirements of paragraph 12 of rule XXVI of the Standing Rules 
of the Senate (relating to the showing of changes in existing 
law made by the bill as reported by the Committee).

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]