A bill to extend trade adjustment assistance, and for other purposes.

Summary: Trade Adjustment Assistance Extension Act of 2011 - Amends the Trade and Globalization Adjustment Assistance Act of 2009 to repeal the December 31, 2011, termination date for trade adjustment assistance (TAA) programs.

Amends the Trade Act of 1974 to extend TAA programs through December 31, 2016.

Extends TAA through December 31, 2016, for: (1) workers, (2) firms, (3) farmers, and (4) communities.

Amends the Internal Revenue Code to extend through December 31, 2016, the 80% tax credit for health insurance costs (including advance payments) for TAA (as well as Pension Benefit Guaranty Corporation [PBGC] pension) recipients.

Makes TAA recipients who are in a break in training under a training program, or who are receiving unemployment compensation, eligible for such tax credit for the period through December 31, 2016.

Amends the IRC, the Employee Retirement Income Security Act of 1974 (ERISA), and the Public Health Service Act (PHSA) to extend through December 31, 2016, the TAA pre-certification period rule disregarding any 63-day lapse in creditable health care coverage for TAA workers.

Extends the continued eligibility for the credit for qualifying family members and certain qualified TAA-eligible individuals and PBGC pension recipients for COBRA premium assistance through December 31, 2016.

Extends through December 31, 2016, coverage under an employee benefit plan funded by a voluntary employees' beneficiary association established pursuant to an order of a bankruptcy court, or by agreement with an authorized representative.

Expands rules for valuing assets in grantor retained annuity trusts to require: (1) that the right to receive fixed amounts from an annuity last for a term of not less than 10 years and that such fixed amounts not decrease during the first 10 years of the annuity term, and (2) that the remainder interest have a value greater than zero when transferred.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Trade Adjustment Assistance 
Extension Act of 2011''.

           TITLE I--EXTENSION OF TRADE ADJUSTMENT ASSISTANCE

SEC. 101. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE.

    (a) In General.--Section 1893 of the Trade and Globalization 
Adjustment Assistance Act of 2009 (Public Law 111-5; 123 Stat. 422) is 
repealed.
    (b) Conforming Amendments.--
            (1) Section 236(a)(2)(A) of the Trade Act of 1974 (19 
        U.S.C. 2296(a)(2)(A)) (as in effect on February 12, 2011) is 
        amended by striking ``shall not exceed--'' and all that follows 
        and inserting ``shall not exceed $575,000,000 for each of the 
        fiscal years 2011 through 2016, and $143,750,000 for the 3-
        month period beginning on October 1, 2016, and ending on 
        December 31, 2016.''.
            (2) Section 245(a) of the Trade Act of 1974 (19 U.S.C. 
        2317(a)) (as in effect on February 12, 2011) is amended by 
        striking ``February 12, 2011'' and inserting ``December 31, 
        2016''.
            (3) Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C. 
        2318(b)(1)) (as in effect on February 12, 2011) is amended by 
        striking ``February 12, 2011'' and inserting ``December 31, 
        2016''.
            (4) Section 255(a) of the Trade Act of 1974 (19 U.S.C. 
        2345(a)) (as in effect on February 12, 2011) is amended by 
        striking ``for fiscal year 2010'' and all that follows and 
        inserting ``for each of the fiscal years 2011 through 2016, and 
        $12,500,000 for the 3-month period beginning on October 1, 
        2016, and ending on December 31, 2016. Amounts appropriated 
        pursuant to this subsection shall remain available until 
        expended.''.
            (5) Section 275(f) of the Trade Act of 1974 (19 U.S.C. 
        2371d(f)) (as in effect on February 12, 2011) is amended by 
        striking ``December 15 in each of the calendar years 2009 
        through'' and inserting ``December 15, 2009,''.
            (6) Section 276(c)(2) of the Trade Act of 1974 (19 U.S.C. 
        2371e(c)(2)) (as in effect on February 12, 2011) is amended by 
        striking ``not more than--'' and all that follows and inserting 
        ``not more than $25,000,000 for each of the fiscal years 2011 
        through 2016, and $6,250,000 for the 3-month period beginning 
        on October 1, 2016, and ending on December 31, 2016.''.
            (7) Section 277(c) of the Trade Act of 1974 (19 U.S.C. 
        2371f(c)) (as in effect on February 12, 2011) is amended--
                    (A) in paragraph (1), by striking ``this 
                subchapter--'' and all that follows and inserting 
                ``this subchapter $150,000,000 for each of the fiscal 
                years 2011 through 2016, and $37,500,000 for the 3-
                month period beginning on October 1, 2016, and ending 
                on December 31, 2016.''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Availability.--Amounts appropriated pursuant to this 
        subchapter shall remain available until expended.''.
            (8) Section 278(e) of the Trade Act of 1974 (19 U.S.C. 
        2372(e)) (as in effect on February 12, 2011) is amended by 
        striking ``December 15 in each of the calendar years 2009 
        through'' and inserting ``December 15, 2009,''.
            (9) Section 279A(h)(2) of the Trade Act of 1974 (19 U.S.C. 
        2373(h)(2)) (as in effect on February 12, 2011) is amended by 
        striking ``December 15 in each of the calendar years 2009 
        through'' and inserting ``December 15, 2009,''.
            (10) Section 279B(a)(1) of the Trade Act of 1974 (19 U.S.C. 
        2373a(a)(1)) (as in effect on February 12, 2011) is amended by 
        striking ``section 279A--'' and all that follows and inserting 
        ``section 279A $40,000,000 for each of the fiscal years 2011 
        through 2016, and $10,000,000 for the 3-month period beginning 
        on October 1, 2016, and ending on December 31, 2016.''.
            (11) Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 
        note) (as in effect on February 12, 2011) is amended to read as 
        follows:

``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 
        December 31, 2016.
            ``(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 
        the worker is--
                    ``(A) certified as eligible for trade adjustment 
                assistance benefits under chapter 2 pursuant to a 
                petition filed under section 221 on or before December 
                31, 2016; and
                    ``(B) otherwise eligible to receive trade 
                adjustment assistance benefits under chapter 2.
    ``(b) Other Assistance.--
            ``(1) Assistance for firms.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), technical assistance and grants may 
                not be provided under chapter 3 after December 31, 
                2016.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                any technical assistance or grant approved under 
                chapter 3 pursuant to a petition filed under section 
                251 on or before December 31, 2016, may be provided--
                            ``(i) to the extent funds are available 
                        pursuant to such chapter for such purpose; and
                            ``(ii) to the extent the recipient of the 
                        technical assistance or grant is otherwise 
                        eligible to receive such technical assistance 
                        or grant, as the case may be.
            ``(2) Farmers.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), technical assistance and financial 
                assistance may not be provided under chapter 6 after 
                December 31, 2016.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                any technical or financial assistance approved under 
                chapter 6 pursuant to a petition filed under section 
                292 on or before December 31, 2016, may be provided--
                            ``(i) to the extent funds are available 
                        pursuant to such chapter for such purpose; and
                            ``(ii) to the extent the recipient of the 
                        technical or financial assistance is otherwise 
                        eligible to receive such technical or financial 
                        assistance, as the case may be.
            ``(3) Assistance for communities.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), technical assistance and grants may 
                not be provided under chapter 4 after December 31, 
                2016.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                any technical assistance or grant approved under 
                chapter 4 pursuant to a petition filed under section 
                273, or a grant proposal submitted under section 278 or 
                279A, on or before December 31, 2016, may be provided--
                            ``(i) to the extent funds are available 
                        pursuant to such chapter for such purpose; and
                            ``(ii) to the extent the recipient of the 
                        technical assistance or grant is otherwise 
                        eligible to receive such technical assistance 
                        or grant, as the case may be.''.
            (12) Section 298(a) of the Trade Act of 1974 (19 U.S.C. 
        2401g(a)) (as in effect on February 12, 2011) is amended by 
        striking ``$10,400,000 for the 6-week period beginning January 
        1, 2011, and ending February 12, 2011,'' and inserting 
        ``$90,000,000 for each of the fiscal years 2011 through 2016, 
        and $22,500,000 for the 3-month period beginning on October 1, 
        2016, and ending on December 31, 2016''.

SEC. 102. EFFECTIVE DATE.

    The amendments made by section 101--
            (1) shall take effect on the date of the enactment of this 
        Act; and
            (2) shall apply to--
                    (A) petitions for certification filed under chapter 
                2, 3, or 6 of title II of the Trade Act of 1974 on or 
                after such date of enactment; and
                    (B) petitions for assistance and proposals for 
                grants filed under chapter 4 of title II of the Trade 
                Act of 1974 on or after such date of enactment.

                 TITLE II--HEALTH COVERAGE IMPROVEMENT

SEC. 201. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.

    (a) In General.--Section 35(a) of the Internal Revenue Code of 1986 
is amended by striking ``February 13, 2011'' and inserting ``January 1, 
2017''.
    (b) Conforming Amendment.--Section 7527(b) of such Code is amended 
by striking ``February 13, 2011'' and inserting ``January 1, 2017''.
    (c) Effective Date.--The amendments made by this section shall 
apply to coverage months beginning after February 12, 2011.

SEC. 202. PAYMENT FOR THE MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT 
              OF THE ADVANCE PAYMENTS OF CREDIT.

    (a) In General.--Section 7527(e) of the Internal Revenue Code of 
1986 is amended by striking ``February 13, 2011'' and inserting 
``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coverage months beginning after February 12, 2011.

SEC. 203. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE FOR 
              CREDIT.

    (a) In General.--Section 35(c)(2)(B) of the Internal Revenue Code 
of 1986 is amended by striking ``February 13, 2011'' and inserting 
``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coverage months beginning after February 12, 2011.

SEC. 204. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING 
              WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE.

    (a) IRC Amendment.--Section 9801(c)(2)(D) of the Internal Revenue 
Code of 1986 is amended by striking ``February 13, 2011'' and inserting 
``January 1, 2017''.
    (b) ERISA Amendment.--Section 701(c)(2)(C) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)(C)) is 
amended by striking ``February 13, 2011'' and inserting ``January 1, 
2017''.
    (c) PHSA Amendment.--Section 2701(c)(2)(C) of the Public Health 
Service Act (as in effect for plan years beginning before January 1, 
2014 (42 U.S.C. 300gg note)) is amended by striking ``February 13, 
2011'' and inserting ``January 1, 2017''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after February 12, 2011.

SEC. 205. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN 
              EVENTS.

    (a) In General.--Section 35(g)(9) of the Internal Revenue Code of 
1986, as added by section 1899E(a) of the American Recovery and 
Reinvestment Tax Act of 2009 (relating to continued qualification of 
family members after certain events), is amended by striking ``February 
13, 2011'' and inserting ``January 1, 2017''.
    (b) Conforming Amendment.--Section 173(f)(8) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)(8)) is amended by striking 
``February 13, 2011'' and inserting ``January 1, 2017''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after February 12, 2011.

SEC. 206. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE 
              INDIVIDUALS AND PBGC RECIPIENTS.

    (a) ERISA Amendments.--
            (1) PBGC recipients.--Section 602(2)(A)(v) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 
        1162(2)(A)(v)) is amended by striking ``February 12, 2011'' and 
        inserting ``December 31, 2016''.
            (2) TAA-eligible individuals.--Section 602(2)(A)(vi) of 
        such Act (29 U.S.C. 1162(2)(A)(vi)) is amended by striking 
        ``February 12, 2011'' and inserting ``December 31, 2016''.
    (b) IRC Amendments.--
            (1) PBGC recipients.--Section 4980B(f)(2)(B)(i)(V) of the 
        Internal Revenue Code of 1986 is amended by striking ``February 
        12, 2011'' and inserting ``December 31, 2016''.
            (2) TAA-eligible individuals.--Section 
        4980B(f)(2)(B)(i)(VI) of such Code is amended by striking 
        ``February 12, 2011'' and inserting ``December 31, 2016''.
    (c) PHSA Amendments.--Section 2202(2)(A)(iv) of the Public Health 
Service Act (42 U.S.C. 300bb-2(2)(A)(iv)) is amended by striking 
``February 12, 2011'' and inserting ``December 31, 2016''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods of coverage which would (without regard to the 
amendments made by this section) end on or after February 13, 2011.

SEC. 207. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES' BENEFICIARY 
              ASSOCIATIONS.

    (a) In General.--Section 35(e)(1)(K) of the Internal Revenue Code 
of 1986 is amended by striking ``February 13, 2012'' and inserting 
``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coverage months beginning after February 12, 2011.

SEC. 208. NOTICE REQUIREMENTS.

    (a) In General.--Section 7527(d)(2) of the Internal Revenue Code of 
1986 is amended by striking ``February 13, 2011'' and inserting 
``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to certificates issued after February 12, 2011.

                           TITLE III--OFFSETS

SEC. 301. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR RETAINED 
              ANNUITY TRUSTS.

    (a) In General.--Subsection (b) of section 2702 of the Internal 
Revenue Code of 1986 is amended--
            (1) by redesignating paragraphs (1), (2) and (3) as 
        subparagraphs (A), (B), and (C), respectively, and by moving 
        such subparagraphs (as so redesignated) 2 ems to the right;
            (2) by striking ``For purposes of'' and inserting the 
        following:
            ``(1) In general.--For purposes of'';
            (3) by striking ``paragraph (1) or (2)'' in paragraph 
        (1)(C) (as so redesignated) and inserting ``subparagraph (A) or 
        (B)''; and
            (4) by adding at the end the following new paragraph:
            ``(2) Additional requirements with respect to grantor 
        retained annuities.--For purposes of subsection (a), in the 
        case of an interest described in paragraph (1)(A) (determined 
        without regard to this paragraph) which is retained by the 
        transferor, such interest shall be treated as described in such 
        paragraph only if--
                    ``(A) the right to receive the fixed amounts 
                referred to in such paragraph is for a term of not less 
                than 10 years,
                    ``(B) such fixed amounts, when determined on an 
                annual basis, do not decrease relative to any prior 
                year during the first 10 years of the term referred to 
                in subparagraph (A), and
                    ``(C) the remainder interest has a value greater 
                than zero determined as of the time of the transfer.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transfers made after December 31, 2010.

                      TITLE IV--BUDGETARY EFFECTS

SEC. 401. COMPLIANCE WITH PAYGO.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.