II

Calendar No. 313

107TH CONGRESS

2D SESSION S. 1209

[Report No. 107–134]

To amend the Trade Act of 1974 to consolidate and improve the trade

adjustment assistance programs, to provide community-based economic

development assistance for trade-affected communities, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

JULY 19, 2001

Mr. BINGAMAN (for himself, Mr. BAUCUS, Mr. DASCHLE, Mr. CONRAD, Mr.

ROCKEFELLER, Mr. BREAUX, Mr. KERRY, Mr. TORRICELLI, Mrs. LINCOLN, Mr. JEFFORDS, Mr. BAYH, Mr. DAYTON, Mr. LIEBERMAN, Mr.

DORGAN, Mr. DURBIN, Mr. SCHUMER, Mr. COCHRAN, Mr. CARPER, Ms.

CANTWELL, Mr. DODD, Ms. STABENOW, Mrs. CLINTON, Mrs. FEINSTEIN, Mr. NELSON of Nebraska, Mrs. BOXER, Ms. COLLINS, Ms.

SNOWE, Mr. WELLSTONE, Mrs. MURRAY, Mr. HARKIN, Mrs. CARNAHAN,

Mr. KENNEDY, Mr. LEVIN, Mr. EDWARDS, Mr. GRAHAM, Mr. BIDEN,

Mr. REID, Mr. JOHNSON, Mr. CLELAND, Mr. CORZINE, Mr. KOHL, Mr.

SARBANES, Mr. INOUYE, and Ms. LANDRIEU) introduced the following

bill; which was read twice and referred to the Committee on Finance

FEBRUARY 4, 2002

Reported by Mr. BAUCUS, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To amend the Trade Act of 1974 to consolidate and improve

the trade adjustment assistance programs, to provide
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community-based economic development assistance for

trade-affected communities, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Trade Adjustment Assistance for Workers, Farmers,

6 Communities, and Firms Act of 2001’’.

7 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

TITLE I—TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

Sec. 101. Adjustment assistance for workers.

Sec. 102. 50 percent refundable tax credit toward premiums for COBRA continuation coverage.

TITLE II—TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

Sec. 201. Reauthorization of program.

TITLE III—TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

Sec. 301. Purpose.

Sec. 302. Trade adjustment assistance for communities.

TITLE IV—TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

Sec. 401. Trade adjustment assistance for farmers.

TITLE V—CONFORMING AMENDMENTS AND EFFECTIVE DATE

Sec. 501. Conforming amendments.

TITLE VI—SAVINGS PROVISIONS AND EFFECTIVE DATE

Sec. 601. Savings provisions.

Sec. 602. Effective date.
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1 TITLE I—TRADE ADJUSTMENT

2 ASSISTANCE FOR WORKERS

3 SEC. 101. ADJUSTMENT ASSISTANCE FOR WORKERS.

4 Chapter 2 of title II of the Trade Act of 1974 (19

5 U.S.C. 2271 et seq.) is amended to read as follows:

6 ‘‘CHAPTER 2—ADJUSTMENT ASSISTANCE

7 FOR WORKERS

8 ‘‘Subchapter A—General Provisions

9 ‘‘SEC. 221. DEFINITIONS.

10 ‘‘In this chapter:

11 ‘‘(1) ADDITIONAL COMPENSATION.—The term

12 ‘additional compensation’ has the meaning given

13 that term in section 205(3) of the Federal-State Ex14 tended Unemployment Compensation Act of 1970

15 (26 U.S.C. 3304 note).

16 ‘‘(2) ADVERSELY AFFECTED EMPLOYMENT.—

17 The term ‘adversely affected employment’ means

18 employment in a firm or appropriate subdivision of

19 a firm, if workers of that firm or subdivision are eli20 gible to apply for adjustment assistance under this

21 chapter.

22 ‘‘(3) ADVERSELY AFFECTED WORKER.—

23 ‘‘(A) IN GENERAL.—The term ‘adversely

24 affected worker’ means a worker who is a mem25 ber of a group of workers certified by the Sec-
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1 retary under section 231(a)(1) as eligible for

2 trade adjustment assistance.

3 ‘‘(B) ADVERSELY AFFECTED SECONDARY

4 WORKER.—The term ‘adversely affected worker’

5 includes an adversely affected secondary worker

6 who is a member of a group of workers em7 ployed at a downstream producer or a supplier,

8 that is certified by the Secretary under section

9 231(a)(2) as eligible for trade adjustment as10 sistance.

11 ‘‘(4) AVERAGE WEEKLY HOURS.—The term ‘av12 erage weekly hours’ means the average hours worked

13 by a worker (excluding overtime) in the employment

14 from which the worker has been or claims to have

15 been separated in the 52 weeks (excluding weeks

16 during which the worker was on leave for purposes

17 of vacation, sickness, maternity, military service, or

18 any other employer-authorized leave) preceding the

19 week specified in paragraph (5)(B)(ii).

20 ‘‘(5) AVERAGE WEEKLY WAGE.—

21 ‘‘(A) IN GENERAL.—The term ‘average

weekly wage’ means 1 22 ⁄13 of the total wages paid

23 to an individual in the high quarter.

24 ‘‘(B) DEFINITIONS.—For purposes of com25 puting the average weekly wage—
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1 ‘‘(i) the term ‘high quarter’ means the

2 quarter in which the individual’s total

3 wages were highest among the first 4 of

4 the last 5 completed calendar quarters im5 mediately before the quarter in which oc6 curs the week with respect to which the

7 computation is made; and

8 ‘‘(ii) the term ‘week’ means the week

9 in which total separation occurred, or, in

10 cases where partial separation is claimed,

11 an appropriate week, as defined in regula12 tions prescribed by the Secretary.

13 ‘‘(6) BENEFIT PERIOD.—The term ‘benefit pe14 riod’ means, with respect to an individual, the fol15 lowing:

16 ‘‘(A) STATE LAW.—The benefit year and

17 any ensuing period, as determined under appli18 cable State law, during which the individual is

19 eligible for regular compensation, additional

20 compensation, or extended compensation.

21 ‘‘(B) FEDERAL LAW.—The equivalent to

22 the benefit year or ensuing period provided for

23 under the applicable Federal unemployment in24 surance law.
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1 ‘‘(7) BENEFIT YEAR.—The term ‘benefit year’

2 has the same meaning given that term in the Fed3 eral-State Extended Unemployment Compensation

4 Act of 1970 (26 U.S.C. 3304 note).

5 ‘‘(8) CONTRIBUTED IMPORTANTLY.—The term

6 ‘contributed importantly’ means a cause that is im7 portant but not necessarily more important than any

8 other cause.

9 ‘‘(9) COOPERATING STATE.—The term ‘cooper10 ating State’ means any State that has entered into

11 an agreement with the Secretary under section 222.

12 ‘‘(10) DOWNSTREAM PRODUCER.—The term

13 ‘downstream producer’ means a firm that performs

14 additional, value-added production processes, includ15 ing a firm that performs final assembly, finishing,

16 or packaging of articles produced by another firm.

17 ‘‘(11) EXTENDED COMPENSATION.—The term

18 ‘extended compensation’ has the meaning given that

19 term in section 205(4) of the Federal-State Ex20 tended Unemployment Compensation Act of 1970

21 (26 U.S.C. 3304 note).

22 ‘‘(12) JOB FINDING CLUB.—The term ‘job find23 ing club’ means a job search workshop which in24 cludes a period of structured, supervised activity in

25 which participants attempt to obtain jobs.
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1 ‘‘(13) JOB SEARCH PROGRAM.—The term ‘job

2 search program’ means a job search workshop or job

3 finding club.

4 ‘‘(14) JOB SEARCH WORKSHOP.—The term ‘job

5 search workshop’ means a short (1- to 3-day) sem6 inar, covering subjects such as labor market infor7 mation, r ́esum ́e writing, interviewing techniques, and

8 techniques for finding job openings, that is designed

9 to provide participants with knowledge that will en10 able the participants to find jobs.

11 ‘‘(15) ON-THE-JOB TRAINING.—The term ‘on12 the-job training’ means training provided by an em13 ployer to an individual who is employed by the em14 ployer.

15 ‘‘(16) PARTIAL SEPARATION.—A partial separa16 tion shall be considered to exist with respect to an

17 individual if—

18 ‘‘(A) the individual has had a 20-percent

19 or greater reduction in the average weekly

20 hours worked by that individual in adversely af21 fected employment; and

22 ‘‘(B) the individual has had a 20-percent

23 or greater reduction in the average weekly wage

24 of the individual with respect to adversely af25 fected employment.
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1 ‘‘(17) REGULAR COMPENSATION.—The term

2 ‘regular compensation’ has the meaning given that

3 term in section 205(2) of the Federal-State Ex4 tended Unemployment Compensation Act of 1970

5 (26 U.S.C. 3304 note).

6 ‘‘(18) SECRETARY.—The term ‘Secretary’

7 means the Secretary of Labor.

8 ‘‘(19) STATE.—The term ‘State’ includes each

9 State of the United States, the District of Columbia,

10 and the Commonwealth of Puerto Rico.

11 ‘‘(20) STATE AGENCY.—The term ‘State agen12 cy’ means the agency of the State that administers

13 the State law.

14 ‘‘(21) STATE LAW.—The term ‘State law’

15 means the unemployment insurance law of the State

16 approved by the Secretary under section 3304 of the

17 Internal Revenue Code of 1986.

18 ‘‘(22) SUPPLIER.—The term ‘supplier’ means a

19 firm that produces component parts for, or articles

20 considered to be a part of, the production process

21 for articles produced by a firm or subdivision cov22 ered by a certification of eligibility under section

23 231. The term ‘supplier’ also includes a firm that

24 provides services under contract to a firm or subdivi25 sion covered by such certification.
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1 ‘‘(23) TOTAL SEPARATION.—The term ‘total

2 separation’ means the layoff or severance of an indi3 vidual from employment with a firm in which or in

4 a subdivision of which, adversely affected employ5 ment exists.

6 ‘‘(24) UNEMPLOYMENT INSURANCE.—The term

7 ‘unemployment insurance’ means the unemployment

8 compensation payable to an individual under any

9 State law or Federal unemployment compensation

10 law, including chapter 85 of title 5, United States

11 Code, and the Railroad Unemployment Insurance

12 Act (45 U.S.C. 351 et seq.).

13 ‘‘(25) WEEK.—Except as provided in paragraph

14 5(B)(ii), the term ‘week’ means a week as defined

15 in the applicable State law.

16 ‘‘(26) WEEK OF UNEMPLOYMENT.—The term

17 ‘week of unemployment’ means a week of total, part18 total, or partial unemployment as determined under

19 the applicable State law or Federal unemployment

20 insurance law.

21 ‘‘SEC. 222. AGREEMENTS WITH STATES.

22 ‘‘(a) IN GENERAL.—The Secretary is authorized on

23 behalf of the United States to enter into an agreement

24 with any State to facilitate the provision of services under

25 this chapter.
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1 ‘‘(b) TERMS OF AGREEMENTS.—

2 ‘‘(1) IN GENERAL.—Any agreement entered

3 into under subsection (a) shall require that the deliv4 ery of services under this chapter take place under

5 title I of the Workforce Investment Act of 1998 (29

6 U.S.C. 2801 et seq.), upon terms and conditions as

7 are established by the Secretary in consultation with

8 the State and set forth in the agreement.

9 ‘‘(2) PROVISIONS OF AGREEMENTS.—Under an

10 agreement entered into under subsection (a), and as

11 an agent of the United States, the State shall—

12 ‘‘(A) facilitate the early filing of petitions

13 under section 231(b) for any group of workers

14 that the State considers are likely to be eligible

15 for benefits under this chapter;

16 ‘‘(B) assist the Secretary in the review of

17 any petition submitted from that State by

18 verifying the information and providing other

19 assistance as the Secretary may request;

20 ‘‘(C) provide to adversely affected workers

21 statewide rapid response activities under section

22 134(a)(2)(A) of the Workforce Investment Act

23 of 1998 (29 U.S.C. 2864(a)(2)(A)) in the same

24 manner and to the same extent as any other

25 worker eligible for those activities;
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1 ‘‘(D) arrange for the provision of services

2 through the one-stop delivery system estab3 lished in section 134(c) of the Workforce In4 vestment Act of 1998 (29 U.S.C. 2864(c));

5 ‘‘(E) advise each worker who applies for

6 unemployment insurance of the available bene7 fits under this chapter and the procedures and

8 deadlines for applying for those benefits;

9 ‘‘(F) receive applications for services under

10 this chapter;

11 ‘‘(G) provide payments on the basis pro12 vided in this chapter;

13 ‘‘(H) afford adversely affected workers the

14 services provided under section 134(d) of the

15 Workforce Investment Act of 1998 (29 U.S.C.

16 2864(d)) in the same manner and to the same

17 extent as any other worker eligible for those

18 services;

19 ‘‘(I) advise each adversely affected worker

20 to apply for training under section 240, and of

21 the deadlines for benefits related to enrollment

22 in training under this chapter;

23 ‘‘(J) ensure that State employees with re24 sponsibility for carrying out an agreement en25 tered into under subsection (a)—
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1 ‘‘(i) inform adversely affected workers

2 covered by a certification issued under sec3 tion 231(c) of the workers’ (and individual

4 member’s of the worker’s family) potential

5 eligibility for—

6 ‘‘(I) medical assistance under the

7 medicaid program established under

8 title XIX of the Social Security Act

9 (42 U.S.C. 1396a et seq.);

10 ‘‘(II) child health assistance

11 under the State children’s health in12 surance program established under

13 title XXI of that Act (42 U.S.C.

14 1397aa et seq.);

15 ‘‘(III) child care services for

16 which assistance is provided under the

17 Child Care and Development Block

18 Grant Act of 1990 (42 U.S.C. 9858 et

19 seq.); and

20 ‘‘(IV) other Federal and State

21 funded health care, child care, trans22 portation, and assistance programs

23 that the workers may be eligible for;

24 and
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1 ‘‘(ii) provide such workers with infor2 mation regarding how to apply for such as3 sistance, services, and programs;

4 ‘‘(K) provide adversely affected workers re5 ferral to training under title I of the Workforce

6 Investment Act of 1998 (29 U.S.C. 2801 et

7 seq.), or any other available Federal or State

8 program designed to assist dislocated workers

9 or unemployed individuals;

10 ‘‘(L) provide services under this chapter

11 using individuals approved by the Secretary to

12 effectively assist workers eligible for assistance

13 under this chapter;

14 ‘‘(M) collect and transmit to the Secretary

15 any data as the Secretary shall reasonably re16 quire to assist the Secretary in assuring the ef17 fective and efficient performance of the pro18 grams carried out under this chapter; and

19 ‘‘(N) otherwise actively cooperate with the

20 Secretary and with other Federal and State

21 agencies in providing payments and services

22 under this chapter, including participation in

23 the performance measurement system estab24 lished by the Secretary under section 224.

25 ‘‘(c) OTHER PROVISIONS.—
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1 ‘‘(1) APPROVAL OF PROVIDERS.—The Secretary

2 shall ensure that the services provided by cooper3 ating States are provided by individuals approved by

4 the Secretary to effectively assist workers eligible for

5 assistance under this chapter.

6 ‘‘(2) AMENDMENT, SUSPENSION, OR TERMI7 NATION OF AGREEMENTS.—Each agreement entered

8 into under this section shall provide the terms and

9 conditions upon which the agreement may be amend10 ed, suspended, or terminated.

11 ‘‘(3) EFFECT ON UNEMPLOYMENT INSUR12 ANCE.—Each agreement entered into under this sec13 tion shall provide that unemployment insurance oth14 erwise payable to any adversely affected worker will

15 not be denied or reduced for any week by reason of

16 any right to payments under this chapter.

17 ‘‘(4) COORDINATION OF WORKFORCE INVEST18 MENT ACTIVITIES.—In order to promote the coordi19 nation of Workforce Investment Act activities in

20 each State with activities carried out under this

21 chapter, each agreement entered into under this sec22 tion shall provide that the State shall submit to the

23 Secretary, in a form as the Secretary may require,

24 the description and information described in para25 graphs (8) and (14) of section 112(b) of the Work-
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1 force Investment Act of 1998 (29 U.S.C. 2822(b)

2 (8) and (14)).

3 ‘‘(d) REVIEW OF STATE DETERMINATIONS.—

4 ‘‘(1) IN GENERAL.—A determination by a co5 operating State regarding entitlement to program

6 benefits under this chapter is subject to review in

7 the same manner and to the same extent as deter8 minations under the applicable State law.

9 ‘‘(2) APPEAL.—A review undertaken by a co10 operating State under paragraph (1) may be ap11 pealed to the Secretary pursuant to such regulations

12 as the Secretary may prescribe.

13 ‘‘SEC. 223. ADMINISTRATION ABSENT STATE AGREEMENT.

14 ‘‘(a) IN GENERAL.—In any State in which there is

15 no agreement in force under section 222, the Secretary

16 shall arrange, under regulations prescribed by the Sec17 retary, for the performance of all necessary functions

18 under this chapter, including providing a hearing for any

19 worker whose application for payment is denied.

20 ‘‘(b) FINALITY OF DETERMINATION.—A final deter21 mination under subsection (a) regarding entitlement to

22 program benefits under this chapter is subject to review

23 by the courts in the same manner and to the same extent

24 as is provided by section 205(g) of the Social Security Act

25 (42 U.S.C. 405(g)).
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1 ‘‘SEC. 224. DATA COLLECTION; EVALUATIONS; REPORTS.

2 ‘‘(a) DATA COLLECTION.—The Secretary shall, pur3 suant to regulations prescribed by the Secretary, collect

4 any data necessary to meet the requirements of this chap5 ter.

6 ‘‘(b) PERFORMANCE EVALUATIONS.—The Secretary

7 shall establish an effective performance measuring system

8 to evaluate the following:

9 ‘‘(1) PROGRAM PERFORMANCE.—

10 ‘‘(A) speed of petition processing;

11 ‘‘(B) quality of petition processing;

12 ‘‘(C) cost of training programs;

13 ‘‘(D) coordination of programs under this

14 title with programs under the Workforce Invest15 ment Act (29 U.S.C. 2801 et seq.);

16 ‘‘(E) length of time participants take to

17 enter and complete training programs;

18 ‘‘(F) the effectiveness of individual con19 tractors in providing appropriate retraining in20 formation;

21 ‘‘(G) the effectiveness of individual ap22 proved training programs in helping workers

23 obtain employment;

24 ‘‘(H) best practices related to the provision

25 of benefits and retraining; and
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1 ‘‘(I) other data to evaluate how individual

2 States are implementing the requirements of

3 this title.

4 ‘‘(2) PARTICIPANT OUTCOMES.—

5 ‘‘(A) reemployment rates;

6 ‘‘(B) types of jobs in which displaced work7 ers have been placed;

8 ‘‘(C) wage and benefit maintenance results;

9 ‘‘(D) training completion rates; and

10 ‘‘(E) other data to evaluate how effective

11 programs under this chapter are for partici12 pants.

13 ‘‘(3) PROGRAM PARTICIPATION DATA.—

14 ‘‘(A) the number of workers receiving ben15 efits and the type of benefits being received;

16 ‘‘(B) the number of workers enrolled in,

17 and the duration of, training by major types of

18 training; and

19 ‘‘(C) earnings history of workers that re20 flects wages before separation and wages in any

21 job obtained after receiving benefits under this

22 Act.

23 ‘‘(c) STATE PARTICIPATION.—The Secretary shall

24 ensure, to the extent practicable, through oversight and

25 effective internal control measures the following:
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1 ‘‘(1) STATE PARTICIPATION.—Participation by

2 each State in the performance measurement system

3 established under subsection (b).

4 ‘‘(2) MONITORING.—Monitoring by each State

5 of internal control measures with respect to perform6 ance measurement data collected by each State.

7 ‘‘(3) RESPONSE.—The quality and speed of the

8 rapid response provided by each State under section

9 134(a)(2)(A) of the Workforce Investment Act of

10 1998 (29 U.S.C. 2864(a)(2)(A)).

11 ‘‘(d) REPORTS.—

12 ‘‘(1) REPORTS BY THE SECRETARY.—

13 ‘‘(A) INITIAL REPORT.—Not later than 6

14 months after the date of enactment of this Act,

15 the Secretary shall submit to the Committee on

16 Finance of the Senate and the Committee on

17 Ways and Means of the House of Representa18 tives a report that—

19 ‘‘(i) describes the performance meas20 urement system established under sub21 section (b);

22 ‘‘(ii) includes analysis of data col23 lected through the system established

24 under subsection (b);
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1 ‘‘(iii) includes information identifying

2 the number of workers who received waiv3 ers under section 235(c) and the average

4 duration of those during the preceding

5 year;

6 ‘‘(iv) describes and analyzes State

7 participation in the system;

8 ‘‘(v) analyzes the quality and speed of

9 the rapid response provided by each State

10 under section 134(a)(2)(A) of the Work11 force Investment Act of 1998 (29 U.S.C.

12 2864(a)(2)(A)); and

13 ‘‘(vi) provides recommendations for

14 program improvements.

15 ‘‘(B) ANNUAL REPORT.—Not later than 1

16 year after the date the report is submitted

17 under subparagraph (A), and annually there18 after, the Secretary shall submit to the Com19 mittee on Finance of the Senate and the Com20 mittee on Ways and Means of the House of

21 Representatives a report that includes the infor22 mation collected under clauses (ii) through (iv)

23 of subparagraph (A).

24 ‘‘(2) STATE REPORTS.—Pursuant to regulations

25 prescribed by the Secretary, each State shall submit
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1 to the Secretary a report that details its participa2 tion in the programs established under this chapter,

3 and that contains the data necessary to allow the

4 Secretary to submit the report required under para5 graph (1).

6 ‘‘(3) PUBLICATION.—The Secretary shall make

7 available to each State, and other public and private

8 organizations as determined by the Secretary, the

9 data gathered and evaluated through the perform10 ance measurement system established under para11 graph (1).

12 ‘‘SEC. 225. STUDY BY SECRETARY OF LABOR WHEN INTER13 NATIONAL TRADE COMMISSION BEGINS IN14 VESTIGATION.

15 ‘‘(a) NOTIFICATION OF INVESTIGATION.—Whenever

16 the International Trade Commission begins an investiga17 tion under section 202 with respect to an industry, the

18 Commission shall immediately notify the Secretary of that

19 investigation, and the Secretary shall immediately begin

20 a study of—

21 ‘‘(1) the number of workers in the domestic in22 dustry producing the like or directly competitive ar23 ticle who have been or are likely to be certified as

24 eligible for adjustment assistance under this chapter;

25 and
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1 ‘‘(2) the extent to which the adjustment of

2 those workers to the import competition may be fa3 cilitated through the use of existing programs.

4 ‘‘(b) REPORT.—

5 ‘‘(1) IN GENERAL.—The Secretary shall provide

6 a report based on the study conducted under sub7 section (a) to the President not later than 15 days

8 after the day on which the Commission makes its re9 port under section 202(f).

10 ‘‘(2) PUBLICATION.—The Secretary shall

11 promptly make public the report provided to the

12 President under paragraph (1) (with the exception

13 of information which the Secretary determines to be

14 confidential) and shall have a summary of the report

15 published in the Federal Register.

16 ‘‘Subchapter B—Certifications

17 ‘‘SEC. 231. CERTIFICATION AS ADVERSELY AFFECTED

18 WORKERS.

19 ‘‘(a) ELIGIBILITY FOR CERTIFICATION.—

20 ‘‘(1) GENERAL RULE.—A group of workers (in21 cluding workers in any agricultural firm or subdivi22 sion of an agricultural firm) shall be certified by the

23 Secretary as adversely affected workers and eligible

24 for trade adjustment assistance benefits under this
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1 chapter pursuant to a petition filed under subsection

2 (b) if the Secretary determines that—

3 ‘‘(A) a significant number or proportion of

4 the workers in the workers’ firm or an appro5 priate subdivision of the firm have become to6 tally or partially separated, or are threatened to

7 become totally or partially separated; and

8 ‘‘(B)(i)(I) the value and volume of imports

9 of articles like or directly competitive with arti10 cles produced by that firm or subdivision have

11 increased; and

12 ‘‘(II) the increase in the value and volume

13 of imports described in subclause (I) contrib14 uted importantly to the workers’ separation or

15 threat of separation; or

16 ‘‘(ii)(I) there has been a shift in produc17 tion by the workers’ firm or subdivision to a

18 foreign country of articles like or directly com19 petitive with articles which are produced by

20 that firm or subdivision; and

21 ‘‘(II) the shift in production described in

22 subclause (I) contributed importantly to the

23 workers’ separation or threat of separation.

24 ‘‘(2) ADVERSELY AFFECTED SECONDARY WORK25 ER.—A group of workers (including workers in any
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1 agricultural firm or subdivision of an agricultural

2 firm) shall be certified by the Secretary as adversely

3 affected and eligible for trade adjustment assistance

4 benefits under this chapter pursuant to a petition

5 filed under subsection (b) if the Secretary deter6 mines that—

7 ‘‘(A) a significant number or proportion of

8 the workers in the workers’ firm or an appro9 priate subdivision of the firm have become to10 tally or partially separated, or are threatened to

11 become totally or partially separated;

12 ‘‘(B) the workers’ firm (or subdivision) is

13 a supplier to a firm (or subdivision) or down14 stream producer to a firm (or subdivision) de15 scribed in paragraph (1)(B) (i) or (ii); and

16 ‘‘(C) a loss of business with a firm (or sub17 division) described in paragraph (1)(B) (i) or

18 (ii) contributed importantly to the workers’ sep19 aration or threat of separation determined

20 under subparagraph (A).

21 ‘‘(3) SPECIAL PROVISIONS.—For purposes of

22 this section—

23 ‘‘(A) OIL AND NATURAL GAS PRO24 DUCERS.—Any firm, or appropriate subdivision

25 of a firm, that engages in exploration or drilling
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1 for oil or natural gas shall be considered to be

2 a firm producing oil or natural gas.

3 ‘‘(B) OIL AND NATURAL GAS IMPORTS.—

4 Any firm, or appropriate subdivision of a firm,

5 that engages in exploration or drilling for oil or

6 natural gas, or otherwise produces oil or nat7 ural gas, shall be considered to be producing ar8 ticles directly competitive with imports of oil

9 and with imports of natural gas.

10 ‘‘(C) TACONITE.—For purposes of this

11 Act, taconite pellets produced in the United

12 States shall be considered to be an article that

13 is like or directly competitive with imports of

14 semifinished steel slab.

15 ‘‘(D) TRUCKERS.—Not later than 6

16 months after the date of enactment of the

17 Trade Adjustment Assistance for Workers,

18 Farmers, Communities, and Firms Act of 2001,

19 the Secretary shall establish a program to pro20 vide assistance under this chapter to domestic

21 operators of motor carriers who are adversely

22 affected by competition from foreign owned and

23 operated motor carriers.

24 ‘‘(b) PETITIONS.—
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1 ‘‘(1) IN GENERAL.—A petition for certification

2 of eligibility for trade adjustment assistance under

3 this chapter for a group of adversely affected work4 ers shall be filed with the Secretary and with the

5 Governor of the State in which the firm or subdivi6 sion of the firm employing the workers is located.

7 ‘‘(2) PERSONS WHO MAY FILE A PETITION.—A

8 petition under paragraph (1) may be filed by any of

9 the following:

10 ‘‘(A) WORKERS.—The group of workers

11 (including workers in an agricultural firm or

12 subdivision or any agricultural firm).

13 ‘‘(B) WORKER REPRESENTATIVES.—The

14 certified or recognized union or other duly ap15 pointed representative of the workers.

16 ‘‘(C) WORKER ADJUSTMENT AND RE17 TRAINING NOTIFICATION.—Any entity to which

18 notice of a plant closing or mass layoff must be

19 given under section 3 of the Worker Adjust20 ment and Retraining Notification Act (29

21 U.S.C. 2102).

22 ‘‘(D) OTHER.—Employers of workers de23 scribed in subparagraph (A), one-stop operators

24 or one-stop partners (as defined in section 101

25 of the Workforce Investment Act of 1998 (29
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1 U.S.C. 2801)), or State employment agencies,

2 on behalf of the workers.

3 ‘‘(E) REQUEST TO INITIATE CERTIFI4 CATION.—The President, or the Committee on

5 Finance of the Senate or the Committee on

6 Ways and Means of the House of Representa7 tives (by resolution), may direct the Secretary

8 to initiate a certification process under this

9 chapter to determine the eligibility for trade ad10 justment assistance of a group of workers.

11 ‘‘(3) ACTIONS BY GOVERNOR.—

12 ‘‘(A) COOPERATING STATE.—Upon receipt

13 of a petition, the Governor of a cooperating

14 State shall ensure that the requirements of the

15 agreement entered into under section 222 are

16 met.

17 ‘‘(B) OTHER STATES.—Upon receipt of a

18 petition, the Governor of a State that has not

19 entered into an agreement under section 222

20 shall coordinate closely with the Secretary to

21 ensure that workers covered by a petition are—

22 ‘‘(i) provided with all available serv23 ices, including rapid response activities

24 under section 134 of the Workforce Invest25 ment Act (29 U.S.C. 2864);
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•S 1209 RS

1 ‘‘(ii) informed of the workers’ (and in2 dividual member’s of the worker’s family)

3 potential eligibility for—

4 ‘‘(I) medical assistance under the

5 medicaid program established under

6 title XIX of the Social Security Act

7 (42 U.S.C. 1396a et seq.);

8 ‘‘(II) child health assistance

9 under the State children’s health in10 surance program established under

11 title XXI of that Act (42 U.S.C.

12 1397aa et seq.);

13 ‘‘(III) child care services for

14 which assistance is provided under the

15 Child Care and Development Block

16 Grant Act of 1990 (42 U.S.C. 9858 et

17 seq.); and

18 ‘‘(IV) other Federal and State

19 funded health care, child care, trans20 portation, and assistance programs

21 that the workers may be eligible for;

22 and

23 ‘‘(iii) provided with information re24 garding how to apply for the assistance,
28

•S 1209 RS

1 services, and programs described in clause

2 (ii).

3 ‘‘(c) ACTIONS BY SECRETARY.—

4 ‘‘(1) IN GENERAL.—As soon as possible after

5 the date on which a petition is filed under subsection

6 (b), but not later than 45 days after that date, the

7 Secretary shall determine whether the petitioning

8 group meets the requirements of subsection (a) and

9 if warranted, shall issue a certification of eligibility

10 for trade adjustment assistance under this sub11 chapter.

12 ‘‘(2) PUBLICATION OF DETERMINATION.—Upon

13 making a determination under paragraph (1), the

14 Secretary shall promptly publish a summary of the

15 determination in the Federal Register together with

16 the reasons for making that determination.

17 ‘‘(3) DATE SPECIFIED IN CERTIFICATION.—

18 Each certification made under this subsection shall

19 specify the date on which the total or partial separa20 tion began or threatened to begin with respect to a

21 group of certified workers.

22 ‘‘(4) PROJECTED TRAINING NEEDS.—The Sec23 retary shall inform the State Workforce Investment

24 Board or equivalent agency, and other public or pri25 vate agencies, institutions, and employers, as appro-
29

•S 1209 RS

1 priate, of each certification issued under section 231

2 and of projections, if available, of the needs for

3 training under section 240 as a result of that certifi4 cation.

5 ‘‘(d) SCOPE OF CERTIFICATION.—

6 ‘‘(1) IN GENERAL.—A certification issued under

7 subsection (c) shall cover adversely affected workers

8 in any group that meets the requirements of sub9 section (a), whose total or partial separation oc10 curred on or after the date on which the petition

11 was filed under subsection (b).

12 ‘‘(2) WORKERS SEPARATED PRIOR TO CERTIFI13 CATION.—A certification issued under subsection (c)

14 shall cover adversely affected workers whose total or

15 partial separation occurred not more than 1 year

16 prior to the date on which the petition was filed

17 under subsection (b).

18 ‘‘(e) TERMINATION OF CERTIFICATION.—

19 ‘‘(1) IN GENERAL.—If the Secretary deter20 mines, with respect to any certification of eligibility,

21 that workers separated from a firm or subdivision

22 covered by a certification of eligibility are no longer

23 adversely affected workers, the Secretary shall ter24 minate the certification.
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1 ‘‘(2) PUBLICATION OF TERMINATION.—The

2 Secretary shall promptly publish notice of any termi3 nation made under paragraph (1) in the Federal

4 Register together with the reasons for making that

5 determination.

6 ‘‘(3) APPLICATION.—Any determination made

7 under paragraph (1) shall apply only to total or par8 tial separations occurring after the termination date

9 specified by the Secretary.

10 ‘‘SEC. 232. BENEFIT INFORMATION TO WORKERS.

11 ‘‘(a) IN GENERAL.—The Secretary shall, in accord12 ance with the provisions of section 222 or 223, as appro13 priate, provide prompt and full information to adversely

14 affected workers covered by a certification issued under

15 section 231(c), including information regarding—

16 ‘‘(1) benefit allowances, training, and other em17 ployment services available under this chapter;

18 ‘‘(2) petition and application procedures under

19 this chapter;

20 ‘‘(3) appropriate filing dates for the allowances,

21 training, and services available under this chapter;

22 and

23 ‘‘(4) procedures for applying for and receiving

24 all other Federal benefits and services available to

25 separated workers during a period of unemployment.
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1 ‘‘(b) ASSISTANCE TO GROUPS OF WORKERS.—

2 ‘‘(1) IN GENERAL.—The Secretary shall provide

3 any necessary assistance to enable groups of workers

4 to prepare petitions or applications for program ben5 efits.

6 ‘‘(2) ASSISTANCE FROM STATES.—The Sec7 retary shall ensure that cooperating States fully

8 comply with the agreements entered into under sec9 tion 222 and shall periodically review that compli10 ance.

11 ‘‘(c) NOTICE.—

12 ‘‘(1) IN GENERAL.—Not later that 15 days

13 after a certification is issued under section 231 (or

14 as soon as practicable after separation), the Sec15 retary shall provide written notice of the benefits

16 available under this chapter to each worker whom

17 the Secretary has reason to believe is covered by the

18 certification.

19 ‘‘(2) PUBLICATION OF NOTICE.—The Secretary

20 shall publish notice of the benefits available under

21 this chapter to workers covered by each certification

22 made under section 231 in newspapers of general

23 circulation in the areas in which those workers re24 side.
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1 ‘‘Subchapter C—Program Benefits

2 ‘‘PART I—GENERAL PROVISIONS

3 ‘‘SEC. 234. COMPREHENSIVE ASSISTANCE.

4 ‘‘Workers covered by a certification issued by the Sec5 retary under section 231 shall be eligible for the following:

6 ‘‘(1) Trade adjustment allowances as described

7 in sections 235 through 238.

8 ‘‘(2) Employment services as described in sec9 tion 239.

10 ‘‘(3) Training as described in section 240.

11 ‘‘(4) Job search allowances as described in sec12 tion 241.

13 ‘‘(5) Relocation allowances as described in sec14 tion 242.

15 ‘‘(6) Supportive services and wage insurance as

16 described in section 243.

17 ‘‘PART II—TRADE ADJUSTMENT ALLOWANCES

18 ‘‘SEC. 235. QUALIFYING REQUIREMENTS FOR WORKERS.

19 ‘‘(a) IN GENERAL.—Payment of a trade adjustment

20 allowance shall be made to an adversely affected worker

21 covered by a certification under section 231 who files an

22 application for the allowance for any week of unemploy23 ment that begins more than 60 days after the date on

24 which the petition that resulted in the certification was

25 filed under section 231, if the following conditions are met:
33

•S 1209 RS

1 ‘‘(1) TIME OF TOTAL OR PARTIAL SEPARATION

2 FROM EMPLOYMENT.—The adversely affected work3 er’s total or partial separation before the worker’s

4 application under this chapter occurred—

5 ‘‘(A) on or after the date, as specified in

6 the certification under which the worker is cov7 ered, on which total or partial separation from

8 adversely affected employment began or threat9 ened to begin in the adversely affected employ10 ment;

11 ‘‘(B) before the expiration of the 2-year

12 period beginning on the date on which the cer13 tification under section 231 was issued; and

14 ‘‘(C) before the termination date (if any)

15 determined pursuant to section 231(e).

16 ‘‘(2) EMPLOYMENT REQUIRED.—

17 ‘‘(A) IN GENERAL.—The adversely affected

18 worker had, in the 52-week period ending with

19 the week in which the total or partial separa20 tion occurred, at least 26 weeks of employment

21 at wages of $30 or more a week with a single

22 firm or subdivision of a firm.

23 ‘‘(B) UNAVAILABILITY OF DATA.—If data

24 with respect to weeks of employment with a

25 firm are not available, the worker had equiva-
34

•S 1209 RS

1 lent amounts of employment computed under

2 regulations prescribed by the Secretary.

3 ‘‘(C) WEEK OF EMPLOYMENT.—For the

4 purposes of this paragraph any week shall be

5 treated as a week of employment at wages of

6 $30 or more, if an adversely affected worker—

7 ‘‘(i) is on employer-authorized leave

8 for purposes of vacation, sickness, injury,

9 maternity, or inactive duty or active duty

10 military service for training;

11 ‘‘(ii) does not work because of a dis12 ability that is compensable under a work13 men’s compensation law or plan of a State

14 or the United States;

15 ‘‘(iii) had employment interrupted in

16 order to serve as a full-time representative

17 of a labor organization in that firm or sub18 division; or

19 ‘‘(iv) is on call-up for purposes of ac20 tive duty in a reserve status in the Armed

21 Forces of the United States, provided that

22 active duty is ‘Federal service’ as defined

23 in section 8521(a)(1) of title 5, United

24 States Code.

25 ‘‘(D) EXCEPTIONS.—
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1 ‘‘(i) In the case of weeks described in

2 clause (i) or (iii) of subparagraph (C), or

3 both, not more than 7 weeks may be treat4 ed as weeks of employment under subpara5 graph (C).

6 ‘‘(ii) In the case of weeks described in

7 clause (ii) or (iv) of subparagraph (C), not

8 more than 26 weeks may be treated as

9 weeks of employment under subparagraph

10 (C).

11 ‘‘(3) UNEMPLOYMENT COMPENSATION.—The

12 adversely affected worker meets all of the following

13 requirements:

14 ‘‘(A) ENTITLEMENT TO UNEMPLOYMENT

15 INSURANCE.—The worker was entitled to (or

16 would be entitled to if the worker applied for)

17 unemployment insurance for a week within the

18 benefit period—

19 ‘‘(i) in which total or partial separa20 tion took place; or

21 ‘‘(ii) which began (or would have

22 begun) by reason of the filing of a claim

23 for unemployment insurance by the worker

24 after total or partial separation.
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1 ‘‘(B) EXHAUSTION OF UNEMPLOYMENT IN2 SURANCE.—The worker has exhausted all rights

3 to any unemployment insurance to which the

4 worker was entitled (or would be entitled if the

5 worker had applied for any unemployment in6 surance).

7 ‘‘(C) NO UNEXPIRED WAITING PERIOD.—

8 The worker does not have an unexpired waiting

9 period applicable to the worker for any unem10 ployment insurance.

11 ‘‘(4) EXTENDED UNEMPLOYMENT COMPENSA12 TION.—The adversely affected worker, with respect

13 to a week of unemployment, would not be disquali14 fied for extended compensation payable under the

15 Federal-State Extended Unemployment Compensa16 tion Act of 1970 (26 U.S.C. 3304 note) by reason

17 of the work acceptance and job search requirements

18 in section 202(a)(3) of that Act.

19 ‘‘(5) TRAINING.—The adversely affected worker

20 is enrolled in a training program approved by the

21 Secretary under section 240(a), and the enrollment

22 occurred not later than the latest of the periods de23 scribed in subparagraph (A), (B), or (C).

24 ‘‘(A) 16 WEEKS.—The worker enrolled not

25 later than the last day of the 16th week after
37

•S 1209 RS

1 the worker’s most recent total separation that

2 meets the requirements of paragraphs (1) and

3 (2).

4 ‘‘(B) 8 WEEKS.—The worker enrolled not

5 later than the last day of the 8th week after the

6 week in which the Secretary issues a certifi7 cation covering the worker.

8 ‘‘(C) EXTENUATING CIRCUMSTANCES.—

9 Notwithstanding subparagraphs (A) and (B),

10 the adversely affected worker is eligible for

11 trade adjustment assistance if the worker en12 rolled not later than 45 days after the later of

13 the dates specified in subparagraph (A) or (B),

14 and the Secretary determines there are extenu15 ating circumstances that justify an extension in

16 the enrollment period.

17 ‘‘(b) FAILURE TO PARTICIPATE IN TRAINING.—

18 ‘‘(1) IN GENERAL.—Until the adversely affected

19 worker begins or resumes participation in a training

20 program approved under section 240(a), no trade

21 adjustment allowance may be paid under subsection

22 (a) to an adversely affected worker for any week or

23 any succeeding week in which—

24 ‘‘(A) the Secretary determines that—

25 ‘‘(i) the adversely affected worker—
38

•S 1209 RS

1 ‘‘(I) has failed to begin participa2 tion in a training program the enroll3 ment in which meets the requirement

4 of subsection (a)(5); or

5 ‘‘(II) has ceased to participate in

6 such a training program before com7 pleting the training program; and

8 ‘‘(ii) there is no justifiable cause for

9 the failure or cessation; or

10 ‘‘(B) the waiver issued to that worker

11 under subsection (c)(1) is revoked under sub12 section (c)(2).

13 ‘‘(2) EXCEPTION.—The provisions of subsection

14 (a)(5) and paragraph (1) shall not apply with re15 spect to any week of unemployment that begins be16 fore the first week following the week in which the

17 certification is issued under section 231.

18 ‘‘(c) WAIVERS OF TRAINING REQUIREMENTS.—

19 ‘‘(1) ISSUANCE OF WAIVERS.—The Secretary

20 may issue a written statement to an adversely af21 fected worker waiving the requirement to be enrolled

22 in training described in subsection (a) if the Sec23 retary determines that the training requirement is

24 not feasible or appropriate for the worker, as indi25 cated by 1 or more of the following:
39

•S 1209 RS

1 ‘‘(A) RECALL.—The worker has been noti2 fied that the worker will be recalled by the firm

3 from which the separation occurred.

4 ‘‘(B) MARKETABLE SKILLS.—The worker

5 has marketable skills as determined pursuant to

6 an assessment of the worker, which may include

7 the profiling system under section 303(j) of the

8 Social Security Act (42 U.S.C. 503(j)), carried

9 out in accordance with guidelines issued by the

10 Secretary.

11 ‘‘(C) RETIREMENT.—The worker is within

12 2 years of meeting all requirements for entitle13 ment to old-age insurance benefits under title II

14 of the Social Security Act (42 U.S.C. 401 et

15 seq.) (except for application therefore).

16 ‘‘(D) HEALTH.—The worker is unable to

17 participate in training due to the health of the

18 worker, except that a waiver under this sub19 paragraph shall not be construed to exempt a

20 worker from requirements relating to the avail21 ability for work, active search for work, or re22 fusal to accept work under Federal or State un23 employment compensation laws.

24 ‘‘(E) ENROLLMENT UNAVAILABLE.—The

25 first available enrollment date for the approved
40

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1 training of the worker is within 60 days after

2 the date of the determination made under this

3 paragraph, or, if later, there are extenuating

4 circumstances for the delay in enrollment, as

5 determined pursuant to guidelines issued by the

6 Secretary.

7 ‘‘(F) DURATION.—The duration of train8 ing appropriate for the individual to obtain suit9 able employment exceeds the individual’s max10 imum entitlement to basic and additional trade

11 adjustment allowances and, in addition, finan12 cial support available through other Federal or

13 State programs, including chapter 5 of subtitle

14 B of title I of the Workforce Investment Act of

15 1998 (29 U.S.C. 2861 et seq.), that would en16 able the individual to complete a suitable train17 ing program cannot be assured.

18 ‘‘(G) EMPLOYMENT AVAILABLE.—There is

19 employment (which may include technical and

20 professional employment) available for an ad21 versely affected worker that offers equivalent

22 wages to those that the adversely affected work23 er earned prior to separation.

24 ‘‘(H) NO BENEFIT.—The worker would

25 not benefit from any training, or no training
41

•S 1209 RS

1 that is suitable for the worker is available at a

2 reasonable cost.

3 ‘‘(I) NO REASONABLE EXPECTATION OF

4 EMPLOYMENT.—There is no reasonable expecta5 tion of employment following completion of the

6 training.

7 ‘‘(J) TRAINING NOT AVAILABLE.—Training

8 approved by the Secretary is not reasonably

9 available to the worker from either govern10 mental agencies or private sources (which may

11 include area vocational education schools, as de12 fined in section 3 of the Carl D. Perkins Voca13 tional and Technical Education Act of 1998 (20

14 U.S.C. 2302), and employers).

15 ‘‘(K) WORKER NOT QUALIFIED.—The

16 worker is not qualified to undertake and com17 plete any training.

18 ‘‘(2) DURATION OF WAIVERS.—

19 ‘‘(A) IN GENERAL.—A waiver issued under

20 paragraph (1) shall be effective for not more

21 than 6 months after the date on which the

22 waiver is issued, unless the Secretary deter23 mines otherwise.

24 ‘‘(B) REVOCATION.—The Secretary shall

25 revoke a waiver issued under paragraph (1) if
42

•S 1209 RS

1 the Secretary determines that the basis of a

2 waiver is no longer applicable to the worker.

3 ‘‘(3) AMENDMENTS UNDER SECTION 222.—

4 ‘‘(A) ISSUANCE BY COOPERATING

5 STATES.—Pursuant to an agreement under sec6 tion 222, the Secretary may authorize a cooper7 ating State to issue waivers as described in

8 paragraph (1) (except for the determination

9 under subparagraphs (F) and (G) of paragraph

10 (1)).

11 ‘‘(B) SUBMISSION OF STATEMENTS.—An

12 agreement under section 222 shall include a re13 quirement that the cooperating State submit to

14 the Secretary the written statements provided

15 pursuant to paragraph (1) and a statement of

16 the reasons for the waiver.

17 ‘‘(4) REASONABLE EXPECTATION OF EMPLOY18 MENT.—For purposes of applying subsection

19 (c)(1)(I), a reasonable expectation of employment

20 does not require that employment opportunities for

21 a worker be available, or offered, immediately upon

22 the completion of training approved under this sec23 tion.
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1 ‘‘SEC. 236. WEEKLY AMOUNTS.

2 ‘‘(a) IN GENERAL.—Subject to subsections (b) and

3 (c), the trade adjustment allowance payable to an ad4 versely affected worker for a week of total unemployment

5 shall be an amount equal to the most recent weekly benefit

6 amount of the unemployment insurance payable to the

7 worker for a week of total unemployment preceding the

8 worker’s first exhaustion of unemployment insurance (as

9 determined for purposes of section 235(a)(3)(B)) reduced

10 (but not below zero) by—

11 ‘‘(1) any training allowance deductible under

12 subsection (c); and

13 ‘‘(2) any income that is deductible from unem14 ployment insurance under the disqualifying income

15 provisions of the applicable State law or Federal un16 employment insurance law.

17 ‘‘(b) ADJUSTMENT FOR WORKERS RECEIVING

18 TRAINING.—

19 ‘‘(1) IN GENERAL.—Any adversely affected

20 worker who is entitled to a trade adjustment allow21 ance and who is receiving training approved by the

22 Secretary, shall receive for each week in which the

23 worker is undergoing that training, a trade adjust24 ment allowance in an amount (computed for such

25 week) equal to the greater of—
44

•S 1209 RS

1 ‘‘(A) the amount computed under sub2 section (a); or

3 ‘‘(B) the amount of any weekly allowance

4 for that training to which the worker would be

5 entitled under any other Federal law for the

6 training of workers, if the worker applied for

7 that allowance.

8 ‘‘(2) ALLOWANCE PAID IN LIEU OF.—Any trade

9 adjustment allowance calculated under paragraph

10 (1) shall be paid in lieu of any training allowance to

11 which the worker would be entitled under any other

12 Federal law.

13 ‘‘(3) COORDINATION WITH UNEMPLOYMENT IN14 SURANCE.—Any week in which a worker undergoing

15 training approved by the Secretary receives pay16 ments from unemployment insurance shall be sub17 tracted from the total number of weeks for which a

18 worker may receive trade adjustment allowance

19 under this chapter.

20 ‘‘(c) ADJUSTMENT FOR WORKERS RECEIVING AL21 LOWANCES UNDER OTHER FEDERAL LAW.—

22 ‘‘(1) REDUCTION IN WEEKS FOR WHICH AL23 LOWANCE WILL BE PAID.—If a training allowance

24 under any Federal law (other than this Act) is paid

25 to an adversely affected worker for any week of un-
45

•S 1209 RS

1 employment with respect to which the worker would

2 be entitled (determined without regard to any dis3 qualification under section 235(b)) to a trade adjust4 ment allowance if the worker applied for that allow5 ance, each week of unemployment shall be deducted

6 from the total number of weeks of trade adjustment

7 allowance otherwise payable to that worker under

8 section 235(a) when the worker applies for a trade

9 adjustment allowance and is determined to be enti10 tled to the allowance.

11 ‘‘(2) PAYMENT OF DIFFERENCE.—If the train12 ing allowance paid to a worker for any week of un13 employment is less than the amount of the trade ad14 justment allowance to which the worker would be en15 titled if the worker applied for the trade adjustment

16 allowance, the worker shall receive, when the worker

17 applies for a trade adjustment allowance and is de18 termined to be entitled to the allowance, a trade ad19 justment allowance for that week equal to the dif20 ference between the training allowance and the trade

21 adjustment allowance computed under subsection

22 (b).
46

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1 ‘‘SEC. 237. LIMITATIONS ON TRADE ADJUSTMENT ALLOW2 ANCES.

3 ‘‘(a) AMOUNT PAYABLE.—The maximum amount of

4 trade adjustment allowance payable to an adversely af5 fected worker, with respect to the period covered by any

6 certification, shall be the amount that is the product of

7 104 multiplied by the trade adjustment allowance payable

8 to the worker for a week of total unemployment (as deter9 mined under section 236) reduced by the total sum of the

10 unemployment insurance to which the worker was entitled

11 (or would have been entitled if the worker had applied for

12 unemployment insurance) in the worker’s first benefit pe13 riod described in section 235(a)(3)(A).

14 ‘‘(b) DURATION OF PAYMENTS.—

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), a trade adjustment allowance shall not be

17 paid for any week occurring after the close of the

18 104-week period that begins with the first week fol19 lowing the week in which the adversely affected

20 worker was most recently totally separated—

21 ‘‘(A) within the period that is described in

22 section 235(a)(1); and

23 ‘‘(B) with respect to which the worker

24 meets the requirements of section 235(a)(2).

25 ‘‘(2) SPECIAL RULES.—
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1 ‘‘(A) BREAK IN TRAINING.—For purposes

2 of this chapter, a worker shall be treated as

3 participating in a training program approved by

4 the Secretary under section 240(a) during any

5 week that is part of a break in a training that

6 does not exceed 30 days if—

7 ‘‘(i) the worker was participating in a

8 training program approved under section

9 240(a) before the beginning of the break in

10 training; and

11 ‘‘(ii) the break is provided under the

12 training program.

13 ‘‘(B) ON-THE-JOB TRAINING.—No trade

14 adjustment allowance shall be paid to a worker

15 under this chapter for any week during which

16 the worker is receiving on-the-job training.

17 ‘‘(c) ADJUSTMENT OF AMOUNTS PAYABLE.—

18 Amounts payable to an adversely affected worker under

19 this chapter shall be subject to adjustment on a week-to20 week basis as may be required by section 236.

21 ‘‘(d) YEAR-END ADJUSTMENT.—

22 ‘‘(1) IN GENERAL.—Notwithstanding any other

23 provision of this Act or any other provision of law,

24 if the benefit year of a worker ends within an ex25 tended benefit period, the number of weeks of ex-
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1 tended benefits that the worker would, but for this

2 subsection, be entitled to in that extended benefit

3 period shall not be reduced by the number of weeks

4 for which the worker was entitled, during that ben5 efit year, to trade adjustment allowances under this

6 part.

7 ‘‘(2) EXTENDED BENEFITS PERIOD.—For the

8 purpose of this section the term ‘extended benefit

9 period’ has the same meaning given that term in the

10 Federal-State Extended Unemployment Compensa11 tion Act of 1970 (26 U.S.C. 3304 note).

12 ‘‘SEC. 238. APPLICATION OF STATE LAWS.

13 ‘‘(a) IN GENERAL.—Except where inconsistent with

14 the provisions of this chapter and subject to such regula15 tions as the Secretary may prescribe, the availability and

16 disqualification provisions of the State law under which

17 an adversely affected worker is entitled to unemployment

18 insurance (whether or not the worker has filed a claim

19 for such insurance), or, if the worker is not so entitled

20 to unemployment insurance, of the State in which the

21 worker was totally or partially separated, shall apply to

22 a worker that files an application for trade adjustment as23 sistance.

24 ‘‘(b) DURATION OF APPLICABILITY.—The State law

25 determined to be applicable with respect to a separation
49

•S 1209 RS

1 of an adversely affected worker shall remain applicable for

2 purposes of subsection (a), with respect to a separation

3 until the worker becomes entitled to unemployment insur4 ance under another State law (whether or not the worker

5 has filed a claim for that insurance).

6 ‘‘PART III—EMPLOYMENT SERVICES, TRAINING,

7 AND OTHER ALLOWANCES

8 ‘‘SEC. 239. EMPLOYMENT SERVICES.

9 ‘‘The Secretary shall, in accordance with section 222

10 or 223, as applicable, make every reasonable effort to se11 cure for adversely affected workers covered by a certifi12 cation under section 231, counseling, testing, placement,

13 and other services provided for under any other Federal

14 law.

15 ‘‘SEC. 240. TRAINING.

16 ‘‘(a) APPROVED TRAINING PROGRAMS.—

17 ‘‘(1) IN GENERAL.—The Secretary shall ap18 prove training programs that include—

19 ‘‘(A) on-the-job training;

20 ‘‘(B) any employment or training activity

21 provided through a one-stop delivery system

22 under chapter 5 of subtitle B of title I of the

23 Workforce Investment Act of 1998 (29 U.S.C.

24 2861 et seq.);

25 ‘‘(C) any program of adult education;
50

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1 ‘‘(D) any training program (other than a

2 training program described in paragraph (3) for

3 which all, or any portion, of the costs of train4 ing the worker are paid—

5 ‘‘(i) under any Federal or State pro6 gram other than this chapter; or

7 ‘‘(ii) from any source other than this

8 section; and

9 ‘‘(E) any other training program that the

10 Secretary determines is acceptable to meet the

11 needs of an adversely affected worker.

12 ‘‘(2) TRAINING AGREEMENTS.—Before approv13 ing any training to which subsection (f)(1)(C) may

14 apply, the Secretary may require that the adversely

15 affected worker enter into an agreement with the

16 Secretary under which the Secretary will not be re17 quired to pay under subsection (b) the portion of the

18 costs of the training that the worker has reason to

19 believe will be paid under the program, or by the

20 source, described in clause (i) or (ii) of subsection

21 (f)(1)(C).

22 ‘‘(3) LIMITATION ON APPROVALS.—The Sec23 retary shall not approve a training program if all of

24 the following apply:
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•S 1209 RS

1 ‘‘(A) PAYMENT BY PLAN.—Any portion of

2 the costs of the training program are paid

3 under any nongovernmental plan or program.

4 ‘‘(B) RIGHT TO OBTAIN.—The adversely

5 affected worker has a right to obtain training

6 or funds for training under that plan or pro7 gram.

8 ‘‘(C) REIMBURSEMENT.—The plan or pro9 gram requires the worker to reimburse the plan

10 or program from funds provided under this

11 chapter, or from wages paid under the training

12 program, for any portion of the costs of that

13 training program paid under the plan or pro14 gram.

15 ‘‘(b) PAYMENT OF TRAINING COSTS.—

16 ‘‘(1) IN GENERAL.—Upon approval of a train17 ing program under subsection (a), and subject to the

18 limitations imposed by this section, an adversely af19 fected worker covered by a certification issued under

20 section 231 may be eligible to have payment of the

21 costs of that training, including any costs of an ap22 proved training program incurred by a worker before

23 a certification was issued under section 231, made

24 on behalf of the worker by the Secretary directly or

25 through a voucher system.
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1 ‘‘(2) ON-THE-JOB TRAINING.—

2 ‘‘(A) PROVISION OF TRAINING ON THE

3 JOB.—If the Secretary approves training under

4 subsection (a), the Secretary shall, insofar as

5 possible, provide or assure the provision of that

6 training on the job, and any training on the job

7 that is approved by the Secretary under sub8 section (a) shall include related education nec9 essary for the acquisition of skills needed for a

10 position within a particular occupation.

11 ‘‘(B) MONTHLY INSTALLMENTS.—If the

12 Secretary approves payment of any on-the-job

13 training under subsection (a), the Secretary

14 shall pay the costs of that training in equal

15 monthly installments.

16 ‘‘(C) LIMITATIONS.—The Secretary may

17 pay the costs of on-the-job training only if—

18 ‘‘(i) no employed worker is displaced

19 by the adversely affected worker (including

20 partial displacement such as a reduction in

21 the hours of nonovertime work, wages, or

22 employment benefits);

23 ‘‘(ii) the training does not impair con24 tracts for services or collective bargaining

25 agreements;
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1 ‘‘(iii) in the case of training that

2 would be inconsistent with the terms of a

3 collective bargaining agreement, the writ4 ten concurrence of the labor organization

5 concerned has been obtained;

6 ‘‘(iv) no other individual is on layoff

7 from the same, or any substantially equiva8 lent, job for which the adversely affected

9 worker is being trained;

10 ‘‘(v) the employer has not terminated

11 the employment of any regular employee or

12 otherwise reduced the workforce of the em13 ployer with the intention of filling the va14 cancy so created by hiring the adversely af15 fected worker;

16 ‘‘(vi) the job for which the adversely

17 affected worker is being trained is not

18 being created in a promotional line that

19 will infringe in any way upon the pro20 motional opportunities of employed individ21 uals;

22 ‘‘(vii) the training is not for the same

23 occupation from which the worker was sep24 arated and with respect to which the work-
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1 er’s group was certified pursuant to section

2 231;

3 ‘‘(viii) the employer certifies to the

4 Secretary that the employer will continue

5 to employ the worker for at least 26 weeks

6 after completion of the training if the

7 worker desires to continue the employment

8 and the employer does not have due cause

9 to terminate the employment;

10 ‘‘(ix) the employer has not received

11 payment under subsection (b)(1) with re12 spect to any other on-the-job training pro13 vided by the employer that failed to meet

14 the requirements of clauses (i) through

15 (vi); and

16 ‘‘(x) the employer has not taken, at

17 any time, any action that violated the

18 terms of any certification described in

19 clause (viii) made by that employer with

20 respect to any other on-the-job training

21 provided by the employer for which the

22 Secretary has made a payment under para23 graph (1).

24 ‘‘(c) CERTAIN WORKERS ELIGIBLE FOR TRAINING

25 BENEFITS.—An adversely affected worker covered by a
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1 certification issued under section 231, who is not qualified

2 to receive a trade adjustment allowance under section 235,

3 may be eligible to have payment of the costs of training

4 made under this section, if the worker enters a training

5 program approved by the Secretary not later than 6

6 months after the date on which the certification that cov7 ers the worker is issued or the Secretary determines that

8 one of the following applied:

9 ‘‘(1) Funding was not available at the time at

10 which the adversely affected worker was required to

11 enter training under paragraph (1).

12 ‘‘(2) The adversely affected worker was covered

13 by a waiver issued under section 235(c).

14 ‘‘(d) EXHAUSTION OF UNEMPLOYMENT INSURANCE

15 NOT REQUIRED.—The Secretary may approve training,

16 and pay the costs thereof, for any adversely affected work17 er who is a member of a group certified under section 231

18 at any time after the date on which the group is certified,

19 without regard to whether the worker has exhausted all

20 rights to any unemployment insurance to which the worker

21 is entitled.

22 ‘‘(e) SUPPLEMENTAL ASSISTANCE.—

23 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

24 and (3), when training is provided under a training

25 program approved by the Secretary under subsection
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1 (a) in facilities that are not within commuting dis2 tance of a worker’s regular place of residence, the

3 Secretary may authorize supplemental assistance to

4 defray reasonable transportation and subsistence ex5 penses for separate maintenance.

6 ‘‘(2) TRANSPORTATION EXPENSES.—The Sec7 retary may not authorize payments for travel ex8 penses exceeding the prevailing mileage rate author9 ized under the Federal travel regulations.

10 ‘‘(3) SUBSISTENCE EXPENSES.—The Secretary

11 may not authorize payments for subsistence that ex12 ceed the lesser of—

13 ‘‘(A) the actual per diem expenses for sub14 sistence of the worker; or

15 ‘‘(B) an amount equal to 50 percent of the

16 prevailing per diem allowance rate authorized

17 under Federal travel regulations.

18 ‘‘(f) SPECIAL PROVISIONS; LIMITATIONS.—

19 ‘‘(1) LIMITATION ON MAKING PAYMENTS.—

20 ‘‘(A) DISALLOWANCE OF OTHER PAY21 MENT.—If the costs of training an adversely af22 fected worker are paid by the Secretary under

23 subsection (b), no other payment for those

24 training costs may be made under any other

25 provision of Federal law.
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1 ‘‘(B) NO PAYMENT OF REIMBURSABLE

2 COSTS.—No payment for the cost of approved

3 training may be made under subsection (b) if

4 those costs—

5 ‘‘(i) have already been paid under any

6 other provision of Federal law; or

7 ‘‘(ii) are reimbursable under any other

8 provision of Federal law and a portion of

9 those costs have already been paid under

10 that other provision of Federal law.

11 ‘‘(C) NO PAYMENT OF COSTS PAID ELSE12 WHERE.—The Secretary is not required to pay

13 the costs of any training approved under sub14 section (a) to the extent that those costs are

15 paid—

16 ‘‘(i) under any Federal or State pro17 gram other than this chapter; or

18 ‘‘(ii) from any source other than this

19 section.

20 ‘‘(D) EXCEPTION.—The provisions of this

21 paragraph shall not apply to, or take into ac22 count, any funds provided under any other pro23 vision of Federal law that are used for any pur24 pose other than the direct payment of the costs

25 incurred in training a particular adversely af-
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1 fected worker, even if the use of those funds

2 has the effect of indirectly paying for or reduc3 ing any portion of the costs involved in training

4 the adversely affected worker.

5 ‘‘(2) UNEMPLOYMENT ELIGIBILITY.—A worker

6 may not be determined to be ineligible or disquali7 fied for unemployment insurance or program bene8 fits under this subchapter because the individual is

9 in training approved under subsection (a), because

10 of leaving work which is not suitable employment to

11 enter the training, or because of the application to

12 any week in training of provisions of State law or

13 Federal unemployment insurance law relating to

14 availability for work, active search for work, or re15 fusal to accept work.

16 ‘‘(3) DEFINITION.—For purposes of this section

17 the term ‘suitable employment’ means, with respect

18 to a worker, work of a substantially equal or higher

19 skill level than the worker’s past adversely affected

20 employment, and wages for such work at not less

21 than 80 percent of the worker’s average weekly

22 wage.

23 ‘‘(4) PAYMENTS AFTER REEMPLOYMENT.—

24 ‘‘(A) IN GENERAL.—In the case of an ad25 versely affected worker who secures reemploy-
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1 ment, the Secretary may approve and pay the

2 costs of training (or shall continue to pay the

3 costs of training previously approved) for that

4 adversely affected worker, for the completion of

5 their training program or up to 26 weeks,

6 whichever is less, after the date the adversely

7 affected worker becomes reemployed.

8 ‘‘(B) TRADE ADJUSTMENT ALLOWANCE.—

9 An adversely affected worker who is reemployed

10 and is undergoing training approved by the Sec11 retary pursuant to subparagraph (A) may con12 tinue to receive trade adjustment allowance,

13 subject to the income offsets provided for in the

14 worker’s State unemployment compensation law

15 in accordance with the provisions of section

16 237.

17 ‘‘(5) FUNDING.—The total amount of payments

18 that may be made under this section for any fiscal

19 year shall not exceed $300,000,000.

20 ‘‘SEC. 241. JOB SEARCH ALLOWANCES.

21 ‘‘(a) JOB SEARCH ALLOWANCE AUTHORIZED.—

22 ‘‘(1) IN GENERAL.—An adversely affected work23 er covered by a certification issued under section

24 231 may file an application with the Secretary for

25 payment of a job search allowance.
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1 ‘‘(2) APPROVAL OF APPLICATIONS.—The Sec2 retary may grant an allowance pursuant to an appli3 cation filed under paragraph (1) when all of the fol4 lowing apply:

5 ‘‘(A) ASSIST ADVERSELY AFFECTED WORK6 ER.—The allowance is paid to assist an ad7 versely affected worker who has been totally

8 separated in securing a job within the United

9 States.

10 ‘‘(B) LOCAL EMPLOYMENT NOT AVAIL11 ABLE.—The Secretary determines that the

12 worker cannot reasonably be expected to secure

13 suitable employment in the commuting area in

14 which the worker resides.

15 ‘‘(C) APPLICATION.—The worker has filed

16 an application for the allowance with the Sec17 retary before—

18 ‘‘(i) the later of—

19 ‘‘(I) the 365th day after the date

20 of the certification under which the

21 worker is certified as eligible; or

22 ‘‘(II) the 365th day after the

23 date of the worker’s last total separa24 tion; or
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1 ‘‘(ii) the date that is the 182d day

2 after the date on which the worker con3 cluded training, unless the worker received

4 a waiver under section 235(c).

5 ‘‘(b) AMOUNT OF ALLOWANCE.—

6 ‘‘(1) IN GENERAL.—An allowance granted

7 under subsection (a) shall provide reimbursement to

8 the worker of 90 percent of the cost of necessary job

9 search expenses as prescribed by the Secretary in

10 regulations.

11 ‘‘(A) MAXIMUM ALLOWANCE.—Reimburse12 ment may not exceed $1,200 for any worker.

13 ‘‘(B) ALLOWANCE FOR SUBSISTENCE AND

14 TRANSPORTATION.—Reimbursement may not be

15 made for subsistence and transportation ex16 penses at levels exceeding those allowable under

17 section 240(e).

18 ‘‘(c) EXCEPTION.—Notwithstanding subsection (b),

19 the Secretary shall reimburse any adversely affected work20 er for necessary expenses incurred by the worker in par21 ticipating in a job search program approved by the Sec22 retary.

23 ‘‘SEC. 242. RELOCATION ALLOWANCES.

24 ‘‘(a) RELOCATION ALLOWANCE AUTHORIZED.—
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•S 1209 RS

1 ‘‘(1) IN GENERAL.—Any adversely affected

2 worker covered by a certification issued under sec3 tion 231 may file an application for a relocation al4 lowance with the Secretary, and the Secretary may

5 grant the relocation allowance, subject to the terms

6 and conditions of this section.

7 ‘‘(2) CONDITIONS FOR GRANTING ALLOW8 ANCE.—A relocation allowance may be granted if all

9 of the following terms and conditions are met:

10 ‘‘(A) ASSIST AN ADVERSELY AFFECTED

11 WORKER.—The relocation allowance will assist

12 an adversely affected worker in relocating with13 in the United States.

14 ‘‘(B) LOCAL EMPLOYMENT NOT AVAIL15 ABLE.—The Secretary determines that the

16 worker cannot reasonably be expected to secure

17 suitable employment in the commuting area in

18 which the worker resides.

19 ‘‘(C) TOTAL SEPARATION.—The worker is

20 totally separated from employment at the time

21 relocation commences.

22 ‘‘(D) SUITABLE EMPLOYMENT OB23 TAINED.—The worker—

24 ‘‘(i) has obtained suitable employment

25 affording a reasonable expectation of long-
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1 term duration in the area in which the

2 worker wishes to relocate; or

3 ‘‘(ii) has obtained a bona fide offer of

4 such employment.

5 ‘‘(E) APPLICATION.—The worker filed an

6 application with the Secretary before—

7 ‘‘(i) the later of—

8 ‘‘(I) the 425th day after the date

9 of the certification under section 231;

10 or

11 ‘‘(II) the 425th day after the

12 date of the worker’s last total separa13 tion; or

14 ‘‘(ii) the date that is the 182d day

15 after the date on which the worker con16 cluded training, unless the worker received

17 a waiver under section 235(c).

18 ‘‘(b) AMOUNT OF ALLOWANCE.—The relocation al19 lowance granted to a worker under subsection (a)

20 includes—

21 ‘‘(1) 90 percent of the reasonable and necessary

22 expenses (including, but not limited to, subsistence

23 and transportation expenses at levels not exceeding

24 those allowable under section 240(e)) specified in

25 regulations prescribed by the Secretary, incurred in
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1 transporting the worker, the worker’s family, and

2 household effects; and

3 ‘‘(2) a lump sum equivalent to 3 times the

4 worker’s average weekly wage, up to a maximum

5 payment of $1,500.

6 ‘‘(c) LIMITATIONS.—A relocation allowance may not

7 be granted to a worker unless—

8 ‘‘(1) the relocation occurs within 182 days after

9 the filing of the application for relocation assistance;

10 or

11 ‘‘(2) the relocation occurs within 182 days after

12 the conclusion of training, if the worker entered a

13 training program approved by the Secretary under

14 section 240(a).

15 ‘‘SEC. 243. SUPPORTIVE SERVICES; WAGE INSURANCE.

16 ‘‘(a) SUPPORTIVE SERVICES.—

17 ‘‘(1) APPLICATION.—

18 ‘‘(A) IN GENERAL.—The State may, on be19 half of any adversely affected worker or group

20 of workers covered by a certification issued

21 under section 231—

22 ‘‘(i) file an application with the Sec23 retary for services under section 173 of the

24 Workforce Investment Act of 1998 (relat25 ing to National Emergency Grants); and
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1 ‘‘(ii) provide other services under title

2 I of the Workforce Investment Act of

3 1998.

4 ‘‘(B) SERVICES.—The services available

5 under this paragraph include transportation,

6 child care, and dependent care that are nec7 essary to enable a worker to participate in ac8 tivities authorized under this chapter.

9 ‘‘(2) CONDITIONS.—The Secretary may approve

10 an application filed under paragraph (1)(A)(i) and

11 provide supportive services to an adversely affected

12 worker only if the Secretary determines that all of

13 the following apply:

14 ‘‘(A) NECESSITY.—Providing services is

15 necessary to enable the worker to participate in

16 or complete training.

17 ‘‘(B) CONSISTENT WITH WORKFORCE IN18 VESTMENT ACT.—The services are consistent

19 with the supportive services provided to partici20 pants under the provisions relating to dislocated

21 worker employment and training activities set

22 forth in chapter 5 of subtitle B of title I of the

23 Workforce Investment Act of 1998 (29 U.S.C.

24 2861 et seq.).

25 ‘‘(b) WAGE INSURANCE PROGRAM.—
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1 ‘‘(1) IN GENERAL.—Not later than 1 year after

2 the date of enactment of this Act, the Secretary

3 shall establish a Wage Insurance Program under

4 which a State shall use the funds provided to the

5 State for trade adjustment allowances to pay to an

6 adversely affected worker certified under section 231

7 a wage subsidy of up to 50 percent of the difference

8 between the wages received by the adversely affected

9 worker from reemployment and the wages received

10 by the adversely affected worker at the time of sepa11 ration for a period not to exceed 2 years.

12 ‘‘(2) AMOUNT OF PAYMENT.—

13 ‘‘(A) WAGES UNDER $40,000.—If the wages

14 the worker receives from reemployment are less

15 than $40,000 a year, the wage subsidy shall be

16 50 percent of the difference between the

17 amount of the wages received by the worker

18 from reemployment and the amount of the

19 wages received by the worker at the time of

20 separation.

21 ‘‘(B) WAGES BETWEEN $40,000 AND

22 $50,000.—If the wages received by the worker

23 from reemployment are greater than $40,000 a

24 year but less than $50,000 a year, the wage

25 subsidy shall be 25 percent of the difference be-
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1 tween the amount of the wages received by the

2 worker from reemployment and the amount of

3 the wages received by the worker at the time of

4 separation.

5 ‘‘(2) ELIGIBILITY.—An adversely affected work6 er may be eligible to receive a wage subsidy under

7 this subsection if the worker—

8 ‘‘(A) enrolls in the Wage Insurance Pro9 gram;

10 ‘‘(B) obtains reemployment not more than

11 26 weeks after the date of separation from the

12 adversely affected employment;

13 ‘‘(C) is at least 50 years of age;

14 ‘‘(D) earns not more than $50,000 a year

15 in wages from reemployment;

16 ‘‘(E) is employed at least 30 hours a week

17 in the reemployment; and

18 ‘‘(F) does not return to the employment

19 from which the worker was separated.

20 ‘‘(3) AMOUNT OF PAYMENTS.—The payments

21 made under paragraph (1) to an adversely affected

22 worker may not exceed $10,000 over the 2-year pe23 riod.

24 ‘‘(4) LIMITATION ON OTHER BENEFITS.—At

25 the time a worker begins to receive a wage subsidy
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1 under this subsection the worker shall not be eligible

2 to receive any benefits under this Act other than the

3 wage subsidy.

4 ‘‘(c) STUDIES OF ASSISTANCE AVAILABLE TO ECO5 NOMICALLY DISTRESSED WORKERS.—

6 ‘‘(1) STUDY BY THE GENERAL ACCOUNTING OF7 FICE.—

8 ‘‘(A) IN GENERAL.—The Comptroller Gen9 eral of the United States shall conduct a study

10 of all assistance provided by the Federal Gov11 ernment for workers facing job loss and eco12 nomic distress.

13 ‘‘(B) REPORT.—Not later than 1 year

14 after the date of enactment of this Act, the

15 Comptroller General shall submit to the Com16 mittee on Finance of the Senate and the Com17 mittee on Ways and Means of the House of

18 Representatives a report on the study con19 ducted under subparagraph (A). The report

20 shall include a description of—

21 ‘‘(i) all Federal programs designed to

22 assist workers facing job loss and economic

23 distress, including all benefits and services;

24 ‘‘(ii) eligibility requirements for each

25 of the programs; and
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1 ‘‘(iii) procedures for applying for and

2 receiving benefits and services under each

3 of the programs.

4 ‘‘(C) DISTRIBUTION OF GAO REPORT.—

5 The report described in subparagraph (B) shall

6 be distributed to all one-stop partners author7 ized under the Workforce Investment Act of

8 1998.

9 ‘‘(2) STUDIES BY THE STATES.—

10 ‘‘(A) IN GENERAL.—Each State may con11 duct a study of its assistance programs for

12 workers facing job loss and economic distress.

13 ‘‘(B) GRANTS.—The Secretary may award

14 to each State a grant, not to exceed $100,000,

15 to enable the State to conduct the study de16 scribed in subparagraph (A).

17 ‘‘(C) REPORT.—Not later than 1 year

18 after the date of enactment of this Act, each

19 State that receives a grant under subparagraph

20 (B) shall submit to the Committee on Finance

21 of the Senate and the Committee on Ways and

22 Means of the House of Representatives the re23 port described in subparagraph (A).

24 ‘‘(D) DISTRIBUTION OF STATE RE25 PORTS.—A report prepared by a State under
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1 this paragraph shall be distributed to the one2 stop partners in the State.

3 ‘‘Subchapter D—Payment and Enforcement

4 Provisions

5 ‘‘SEC. 244. PAYMENTS TO STATES.

6 ‘‘(a) IN GENERAL.—The Secretary, from time to

7 time, shall certify to the Secretary of the Treasury for pay8 ment to each cooperating State, the sums necessary to en9 able that State as agent of the United States to make pay10 ments provided for by this chapter.

11 ‘‘(b) LIMITATION ON USE OF FUNDS.—

12 ‘‘(1) IN GENERAL.—All money paid to a cooper13 ating State under this section shall be used solely

14 for the purposes for which it is paid.

15 ‘‘(2) RETURN OF FUNDS NOT SO USED.—

16 Money paid that is not used for the purpose under

17 subsection (a) shall be returned, at the time speci18 fied in the agreement entered into under section

19 222, to the Secretary of the Treasury.

20 ‘‘(c) SURETY BOND.—Any agreement under section

21 222 may require any officer or employee of the cooper22 ating State certifying payments or disbursing funds under

23 the agreement or otherwise participating in the perform24 ance of the agreement, to give a surety bond to the United

25 States in an amount the Secretary deems necessary, and
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1 may provide for the payment of the cost of that bond from

2 funds for carrying out the purposes of this chapter.

3 ‘‘SEC. 245. LIABILITIES OF CERTIFYING AND DISBURSING

4 OFFICERS.

5 ‘‘(a) LIABILITY OF CERTIFYING OFFICIALS.—No

6 person designated by the Secretary, or designated pursu7 ant to an agreement entered into under section 222, as

8 a certifying officer, in the absence of gross negligence or

9 intent to defraud the United States, shall be liable with

10 respect to any payment certified by that person under this

11 chapter.

12 ‘‘(b) LIABILITY OF DISBURSING OFFICERS.—No dis13 bursing officer, in the absence of gross negligence or intent

14 to defraud the United States, shall be liable with respect

15 to any payment by that officer under this chapter if the

16 payment was based on a voucher signed by a certifying

17 officer designated according to subsection (a).

18 ‘‘SEC. 246. FRAUD AND RECOVERY OF OVERPAYMENTS.

19 ‘‘(a) IN GENERAL.—

20 ‘‘(1) OVERPAYMENT.—If a cooperating State,

21 the Secretary, or a court of competent jurisdiction

22 determines that any person has received any pay23 ment under this chapter to which the person was not

24 entitled, including a payment referred to in sub25 section (b), that person shall be liable to repay that
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1 amount to the cooperating State or the Secretary, as

2 the case may be.

3 ‘‘(2) EXCEPTION.—The cooperating State or

4 the Secretary may waive repayment if the cooper5 ating State or the Secretary determines, in accord6 ance with guidelines prescribed by the Secretary,

7 that all of the following apply:

8 ‘‘(A) NO FAULT.—The payment was made

9 without fault on the part of the person.

10 ‘‘(B) REPAYMENT CONTRARY TO EQ11 UITY.—Requiring repayment would be contrary

12 to equity and good conscience.

13 ‘‘(3) PROCEDURE FOR RECOVERY.—

14 ‘‘(A) RECOVERY FROM OTHER ALLOW15 ANCES AUTHORIZED.—Unless an overpayment

16 is otherwise recovered or waived under para17 graph (2), the cooperating State or the Sec18 retary shall recover the overpayment by deduc19 tions from any sums payable to that person

20 under this chapter, under any Federal unem21 ployment compensation law administered by the

22 cooperating State or the Secretary, or under

23 any other Federal law administered by the co24 operating State or the Secretary that provides
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1 for the payment of assistance or an allowance

2 with respect to unemployment.

3 ‘‘(B) RECOVERY FROM STATE ALLOW4 ANCES AUTHORIZED.—Notwithstanding any

5 other provision of Federal or State law, the

6 Secretary may require a cooperating State to

7 recover any overpayment under this chapter by

8 deduction from any unemployment insurance

9 payable to that person under State law, except

10 that no single deduction under this paragraph

11 shall exceed 50 percent of the amount otherwise

12 payable.

13 ‘‘(b) INELIGIBILITY FOR FURTHER PAYMENTS.—Any

14 person, in addition to any other penalty provided by law,

15 shall be ineligible for any further payments under this

16 chapter if a cooperating State, the Secretary, or a court

17 of competent jurisdiction determines that one of the fol18 lowing applies:

19 ‘‘(1) FALSE STATEMENT.—The person know20 ingly made, or caused another to make, a false state21 ment or representation of a material fact, and as a

22 result of the false statement or representation, the

23 person received any payment under this chapter to

24 which the person was not entitled.
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1 ‘‘(2) FAILURE TO DISCLOSE.—The person

2 knowingly failed, or caused another to fail, to dis3 close a material fact, and as a result of the non4 disclosure, the person received any payment under

5 this chapter to which the person was not entitled.

6 ‘‘(c) HEARING.—Except for overpayments deter7 mined by a court of competent jurisdiction, no repayment

8 may be required, and no deduction may be made, under

9 this section until a determination under subsection (a) by

10 the cooperating State or the Secretary, as the case may

11 be, has been made, notice of the determination and an

12 opportunity for a fair hearing has been given to the person

13 concerned, and the determination has become final.

14 ‘‘(d) RECOVERED FUNDS.—Any amount recovered

15 under this section shall be returned to the Treasury of

16 the United States.

17 ‘‘SEC. 247. CRIMINAL PENALTIES.

18 ‘‘Whoever makes a false statement of a material fact

19 knowing it to be false, or knowingly fails to disclose a ma20 terial fact, for the purpose of obtaining or increasing for

21 that person or for any other person any payment author22 ized to be furnished under this chapter or pursuant to an

23 agreement under section 222 shall be fined not more than

24 $1,000, imprisoned for not more than 1 year, or both.
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1 ‘‘SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to the De3 partment of Labor, for the period beginning October 1,

4 2001, and ending September 30, 2006, such sums as may

5 be necessary to carry out the purposes of this chapter.

6 Amounts appropriated under this section shall remain

7 available until expended.

8 ‘‘SEC. 249. REGULATIONS.

9 ‘‘The Secretary shall prescribe such regulations as

10 may be necessary to carry out the provisions of this chap11 ter.

12 ‘‘SEC. 250. SUBPOENA POWER.

13 ‘‘(a) IN GENERAL.—The Secretary may require by

14 subpoena the attendance of witnesses and the production

15 of evidence necessary to make a determination under the

16 provisions of this chapter.

17 ‘‘(b) COURT ORDER.—If a person refuses to obey a

18 subpoena issued under subsection (a), a competent United

19 States district court, upon petition by the Secretary, may

20 issue an order requiring compliance with such subpoena.’’.

21 SEC. 102. 50 PERCENT REFUNDABLE TAX CREDIT TOWARD

22 PREMIUMS FOR COBRA CONTINUATION COV23 ERAGE.

24 (a) IN GENERAL.—Subpart C of part IV of sub25 chapter A of chapter 1 of the Internal Revenue Code of

26 1986 (relating to refundable credits) is amended by redes-
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1 ignating section 35 as section 36 and by inserting after

2 section 34 the following new section:

3 ‘‘SEC. 35. COBRA CONTINUATION COVERAGE PREMIUMS.

4 ‘‘(a) IN GENERAL.—In the case of an eligible indi5 vidual, there shall be allowed as a credit against the tax

6 imposed by this subtitle for the taxable year an amount

7 equal to 50 percent of the amount paid by the taxpayer

8 during such year as continuation health coverage pre9 miums.

10 ‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this

11 section, the term ‘eligible individual’ means any individual

12 who is a member of a group of workers certified as eligible

13 to apply for adjustment assistance under chapter 2 of title

14 II of the Trade Act of 1974 (19 U.S.C. 221, et seq.).

15 ‘‘(c) CONTINUATION HEALTH COVERAGE PREMIUMS

16 DEFINED.—For purposes of this section, the term ‘con17 tinuation health coverage premiums’ means, for any period

18 during which a taxpayer is an eligible individual, pre19 miums paid for continuation coverage (as defined in sec20 tion 4980B(f)) under a group health plan for such period

21 but only if failure to offer such coverage to the taxpayer

22 for such period would constitute a failure by such health

23 plan to meet the requirements of section 4980B(f).

24 ‘‘(d) COORDINATION WITH MEDICAL EXPENSE DE25 DUCTION.—The amount which would (but for this sub-
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1 section) be taken into account by the taxpayer under sec2 tion 213 for the taxable year shall be reduced by the credit

3 (if any) allowed by this section to the taxpayer for such

4 year.’’.

5 (b) CONFORMING AMENDMENTS.—

6 (1) Paragraph (2) of section 1324(b) of title

7 31, United States Code, is amended by inserting be8 fore the period ‘‘, or from section 35 of such Code’’.

9 (2) The table of sections for subpart C of part

10 IV of subchapter A of chapter 1 of the Internal Rev11 enue Code of 1986 is amended by striking the last

12 item and inserting the following new items:

‘‘Sec. 35. COBRA continuation coverage premiums.

‘‘Sec. 36. Overpayments of tax.’’.

13 (c) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to taxable years beginning after

15 December 31, 2001, for premiums for months beginning

16 with January 2002.

17 TITLE II—TRADE ADJUSTMENT

18 ASSISTANCE FOR FIRMS

19 SEC. 201. REAUTHORIZATION OF PROGRAM.

20 (a) IN GENERAL.—Section 256(b) of chapter 3 of

21 title II of the Trade Act of 1974 (19 U.S.C. 2346(b)) is

22 amended to read as follows:

23 ‘‘(b) There are authorized to be appropriated to the

24 Secretary for the period beginning October 1, 2001, and
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1 ending on September 30, 2006, such sums as may be nec2 essary to carry out the Secretary’s functions under this

3 chapter in connection with furnishing adjustment assist4 ance to firms. Amounts appropriated under this subsection

5 shall remain available until expended.’’.

6 (b) ELIGIBILITY CRITERIA.—Section 251(c) of Chap7 ter 3 of title II of the Trade Act of 1974 (19 U.S.C.

8 2341(c)(1)) is amended—

9 (1) in paragraph (1), by striking subparagraphs

10 (B) and (C) and inserting the following:

11 ‘‘(B) increases of imports of articles like or di12 rectly competitive with articles which are produced

13 by such firm contributed importantly to such total

14 or partial separation, or threat thereof, and

15 ‘‘(C) a shift in production by the workers’ firm

16 or subdivision to a foreign country of articles like or

17 directly competitive with articles which are produced

18 by that firm or subdivision contributed importantly

19 to the workers’ separation or threat of separation.’’;

20 and

21 (2) in paragraph (2), by striking ‘‘paragraph

22 (1)(C)’’ and inserting ‘‘subparagraphs (B) and (C)

23 of paragraph (1)’’.
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1 TITLE III—TRADE ADJUSTMENT

2 ASSISTANCE FOR COMMUNITIES

3 SEC. 301. PURPOSE.

4 The purpose of this title is to assist communities with

5 economic adjustment through the integration of political

6 and economic organizations, the coordination of Federal,

7 State, and local resources, the creation of community8 based development strategies, and the provision of eco9 nomic transition assistance.

10 SEC. 302. TRADE ADJUSTMENT ASSISTANCE FOR COMMU11 NITIES.

12 Chapter 4 of title II of the Trade Act of 1974 (19

13 U.S.C. 2371 et seq.) is amended to read as follows:

14 ‘‘CHAPTER 4—COMMUNITY ECONOMIC

15 ADJUSTMENT

16 ‘‘SEC. 271. DEFINITIONS.

17 ‘‘In this chapter:

18 ‘‘(1) CIVILIAN LABOR FORCE.—The term ‘civil19 ian labor force’ has the meaning given that term in

20 regulations prescribed by the Secretary of Labor.

21 ‘‘(2) COMMUNITY.—The term ‘community’

22 means a county or equivalent political subdivision of

23 a State.
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1 ‘‘(A) RURAL COMMUNITY.—The term

2 ‘rural community’ means a community that has

3 a rural-urban continuum code of 4 through 9.

4 ‘‘(B) URBAN COMMUNITY.—The term

5 ‘urban community’ means a community that

6 has a rural-urban continuum code of 0 through

7 3.

8 ‘‘(3) COMMUNITY ECONOMIC DEVELOPMENT CO9 ORDINATING COMMITTEE.—The term ‘Community

10 Economic Development Coordinating Committee’ or

11 ‘Committee’ means a community group established

12 under section 274 that consists of major groups sig13 nificantly affected by an increase in imports or a

14 shift in production, including local, regional, tribal,

15 and State governments, regional councils of govern16 ments and economic development, and business,

17 labor, education, health, religious, and other commu18 nity-based organizations.

19 ‘‘(4) DIRECTOR.—The term ‘Director’ means

20 the Director of the Office of Community Economic

21 Adjustment.

22 ‘‘(5) ELIGIBLE COMMUNITY.—The term ‘eligible

23 community’ means a community certified under sec24 tion 273 as eligible for assistance under this chap25 ter.
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1 ‘‘(6) JOB LOSS.—The term ‘job loss’ means the

2 total or partial separation of an individual, as those

3 terms are defined in section 221.

4 ‘‘(7) OFFICE.—The term ‘Office’ means the Of5 fice of Community Economic Adjustment established

6 under section 272.

7 ‘‘(8) RURAL-URBAN CONTINUUM CODE.—The

8 term ‘rural-urban continuum code’ means a code as9 signed to a community according to the rural-urban

10 continuum code system, as defined by the Economic

11 Research Service of the Department of Agriculture.

12 ‘‘(9) SECRETARY.—The term ‘Secretary’ means

13 the Secretary of Commerce.

14 ‘‘SEC. 272. OFFICE OF COMMUNITY ECONOMIC ADJUST15 MENT.

16 ‘‘(a) ESTABLISHMENT.—There is established an Of17 fice of Community Economic Adjustment in the Office of

18 the Secretary of Commerce.

19 ‘‘(b) PERSONNEL.—The Office shall be headed by a

20 Director, and such staff as may be necessary to carry out

21 the responsibilities described in this chapter.

22 ‘‘(c) COORDINATION OF FEDERAL RESPONSE.—The

23 Office shall—
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1 ‘‘(1) provide leadership, support, and coordina2 tion for a comprehensive management program to

3 address economic dislocation in eligible communities;

4 ‘‘(2) establish an easily accessible, one-stop

5 clearinghouse for States and eligible communities to

6 obtain information regarding economic development

7 assistance available under Federal law;

8 ‘‘(3) coordinate the Federal response to an eli9 gible community—

10 ‘‘(A) by identifying all Federal, State, and

11 local resources that are available to assist the

12 eligible community in recovering from economic

13 distress;

14 ‘‘(B) by ensuring that all Federal agencies

15 offering assistance to an eligible community do

16 so in a targeted, integrated manner that en17 sures that an eligible community has access to

18 all available Federal assistance;

19 ‘‘(C) by assuring timely consultation and

20 cooperation between Federal, State, and re21 gional officials concerning community economic

22 adjustment;

23 ‘‘(D) by identifying and strengthening ex24 isting agency mechanisms designed to assist
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1 communities in economic adjustment and work2 force reemployment;

3 ‘‘(E) by applying consistent policies, prac4 tices, and procedures in the administration of

5 Federal programs that are used to assist com6 munities adversely impacted by an increase in

7 imports or a shift in production;

8 ‘‘(F) by creating, maintaining, and using a

9 uniform economic database to analyze commu10 nity adjustment activities; and

11 ‘‘(G) by assigning a community economic

12 adjustment advisor to work with each eligible

13 community;

14 ‘‘(4) provide comprehensive technical assistance

15 to any eligible community in the efforts of that com16 munity to—

17 ‘‘(A) identify serious economic problems in

18 the community that result from an increase in

19 imports or shift in production;

20 ‘‘(B) integrate the major groups and orga21 nizations significantly affected by the economic

22 adjustment;

23 ‘‘(C) organize a Community Economic De24 velopment Coordinating Committee;
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1 ‘‘(D) access Federal, State, and local re2 sources designed to assist in economic develop3 ment and trade adjustment assistance;

4 ‘‘(E) diversify and strengthen the commu5 nity economy; and

6 ‘‘(F) develop a community-based strategic

7 plan to address workforce dislocation and eco8 nomic development;

9 ‘‘(5) establish specific criteria for submission

10 and evaluation of a strategic plan submitted under

11 section 276(d);

12 ‘‘(6) administer the grant programs established

13 under sections 276 and 277; and

14 ‘‘(7) establish an interagency Trade Adjustment

15 Assistance Working Group, consisting of the rep16 resentatives of any Federal department or agency

17 with responsibility for economic adjustment assist18 ance, including the Department of Agriculture, the

19 Department of Defense, the Department of Edu20 cation, the Department of Labor, the Department of

21 Housing and Urban Development, the Department

22 of Health and Human Services, the Small Business

23 Administration, the Department of the Treasury, the

24 Department of Commerce, the Office of the United
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1 States Trade Representative, and the National Eco2 nomic Council.

3 ‘‘SEC. 273. NOTIFICATION AND CERTIFICATION AS AN ELI4 GIBLE COMMUNITY.

5 ‘‘(a) NOTIFICATION.—The Secretary of Labor, not

6 later than 15 days after making a determination that a

7 group of workers is eligible for trade adjustment assist8 ance under section 231, shall notify the Governor of the

9 State in which the community in which the worker’s firm

10 is located and the Director, of the Secretary’s determina11 tion.

12 ‘‘(b) CERTIFICATION.—Not later than 30 days after

13 notification by the Secretary of Labor described in sub14 section (a), the Director shall certify as eligible for assist15 ance under this chapter a community in which 1 of the

16 following conditions apply:

17 ‘‘(1) NUMBER OF JOB LOSSES.—The Director

18 shall certify that a community is eligible for assist19 ance under this chapter if—

20 ‘‘(A) in an urban community, at least 500

21 workers have been certified for assistance under

22 section 231 in the most recent 36-month period

23 preceding the date of certification under this

24 section for which data are available; or
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1 ‘‘(B) in a rural community, at least 300

2 workers have been certified for assistance under

3 section 231 in the most recent 36-month period

4 preceding the date of certification under this

5 section for which data are available.

6 ‘‘(2) PERCENT OF WORKFORCE UNEM7 PLOYED.—The Director shall certify that a commu8 nity is eligible for assistance under this chapter if

9 the unemployment rate for the community is at least

10 1 percent greater than the national unemployment

11 rate for the most recent 12-month period for which

12 data are available.

13 ‘‘(c) NOTIFICATION TO ELIGIBLE COMMUNITIES.—

14 Not later than 15 days after the Director certifies a com15 munity as eligible under subsection (b), the Director shall

16 notify the community—

17 ‘‘(1) of its determination under subsection (b);

18 ‘‘(2) of the provisions of this chapter;

19 ‘‘(3) how to access the clearinghouse established

20 under section 272(c)(2); and

21 ‘‘(4) how to obtain technical assistance provided

22 under section 272(c)(4).
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1 ‘‘SEC. 274. COMMUNITY ECONOMIC DEVELOPMENT COORDI2 NATING COMMITTEE.

3 ‘‘(a) ESTABLISHMENT.—In order to receive benefits

4 under this chapter, an eligible community shall establish

5 a Community Economic Development Coordinating Com6 mittee.

7 ‘‘(b) COMPOSITION OF THE COMMITTEE.—

8 ‘‘(1) LOCAL PARTICIPATION.—The Community

9 Economic Development Coordinating Committee es10 tablished by an eligible community under subsection

11 (a) shall include representatives of those groups sig12 nificantly affected by economic dislocation, such as

13 local, regional, tribal, and State governments, re14 gional councils of governments and economic devel15 opment, business, labor, education, health organiza16 tions, religious, and other community-based groups

17 providing assistance to workers, their families, and

18 communities.

19 ‘‘(2) FEDERAL PARTICIPATION.—Pursuant to

20 section 275(b)(3), the community economic adjust21 ment advisor, assigned by the Director to assist an

22 eligible community, shall serve as an ex officio mem23 ber of the Community Economic Development Co24 ordinating Committee, and shall arrange for partici25 pation by representatives of other Federal agencies

26 on that Committee as necessary.
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1 ‘‘(3) EXISTING ORGANIZATION.—An eligible

2 community may designate an existing organization

3 in that community as the Community Economic De4 velopment Coordinating Committee if that organiza5 tion meets the requirements of paragraph (1) for the

6 purposes of this chapter.

7 ‘‘(c) DUTIES.—The Community Economic Develop8 ment Coordinating Committee shall—

9 ‘‘(1) ascertain the severity of the community

10 economic adjustment required as a result of the in11 crease in imports or shift in production;

12 ‘‘(2) assess the capacity of the community to

13 respond to the required economic adjustment and

14 the needs of the community as it undertakes eco15 nomic adjustment, taking into consideration such

16 factors as the number of jobs lost, the size of the

17 community, the diversity of industries, the skills of

18 the labor force, the condition of the current labor

19 market, the availability of financial resources, the

20 quality and availability of educational facilities, and

21 the existence of a basic and advanced infrastructure

22 in the community;

23 ‘‘(3) facilitate a dialogue between concerned in24 terests in the community, represent the impacted

25 community, and ensure all interests in the commu-
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1 nity work collaboratively toward collective goals

2 without duplication of effort or resources;

3 ‘‘(4) oversee the development of a strategic plan

4 for community economic development, taking into

5 consideration the factors mentioned under para6 graph (2), and consistent with the criteria estab7 lished by the Secretary for the strategic plan devel8 oped under section 276;

9 ‘‘(5) create an executive council with an equi10 table representation of community interests to pro11 mote the strategic plan within the community and

12 ensure coordination and cooperation among all

13 stakeholders; and

14 ‘‘(6) apply for any grant, loan, or loan guar15 antee available under Federal law to develop or im16 plement the strategic plan, and be an eligible recipi17 ent for funding for economic adjustment for that

18 community.

19 ‘‘SEC. 275. COMMUNITY ECONOMIC ADJUSTMENT ADVI20 SORS.

21 ‘‘(a) IN GENERAL.—Pursuant to section

22 272(c)(3)(G), the Director shall assign a community eco23 nomic adjustment advisor to each eligible community.

24 ‘‘(b) DUTIES.—The community economic adjustment

25 advisor shall—
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1 ‘‘(1) provide technical assistance to the eligible

2 community, assist in the development and implemen3 tation of a strategic plan, including applying for any

4 grant available under this or any other Federal law

5 to develop or implement that plan;

6 ‘‘(2) at the local and regional level, coordinate

7 the response of all Federal agencies offering assist8 ance to the eligible community;

9 ‘‘(3) serve as an ex officio member of the Com10 munity Economic Development Coordinating Com11 mittee established by an eligible community under

12 section 274;

13 ‘‘(4) act as liaison between the Community Eco14 nomic Development Coordinating Committee estab15 lished by the eligible community and all other Fed16 eral agencies that offer assistance to eligible commu17 nities, including the Department of Agriculture, the

18 Department of Defense, the Department of Edu19 cation, the Department of Labor, the Department of

20 Housing and Urban Development, the Department

21 of Health and Human Services, the Small Business

22 Administration, the Department of the Treasury, the

23 National Economic Council, and other offices or

24 agencies of the Department of Commerce;
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1 ‘‘(5) report regularly to the Director regarding

2 the progress of development activities in the commu3 nity to which the community economic adjustment

4 advisor is assigned; and

5 ‘‘(6) perform other duties as directed by the

6 Secretary or the Director.

7 ‘‘SEC. 276. STRATEGIC PLANS.

8 ‘‘(a) IN GENERAL.—With the assistance of the com9 munity economic adjustment advisor, an eligible commu10 nity may develop a strategic plan for community economic

11 adjustment and diversification.

12 ‘‘(b) REQUIREMENTS FOR STRATEGIC PLAN.—A

13 strategic plan shall contain, at a minimum, the following:

14 ‘‘(1) A description and justification of the ca15 pacity for economic adjustment, including the meth16 od of financing to be used, the anticipated manage17 ment structure of the Community Economic Devel18 opment Coordinating Committee, and the commit19 ment of the community to the strategic plan over the

20 long term.

21 ‘‘(2) A description of, and a plan to accomplish,

22 the projects to be undertaken by the eligible commu23 nity.

24 ‘‘(3) A description of how the plan and the

25 projects to be undertaken by the eligible community
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1 will lead to job creation and job retention in the

2 community.

3 ‘‘(4) A description of any alternative develop4 ment plans that were considered, particularly less

5 costly alternatives, and why those plans were re6 jected in favor of the proposed plan.

7 ‘‘(5) A description of any additional steps the

8 eligible community will take to achieve economic ad9 justment and diversification.

10 ‘‘(6) A description and justification for the cost

11 and timing of proposed basic and advanced infra12 structure improvements in the eligible community.

13 ‘‘(7) A description of the occupational and

14 workforce conditions in the eligible community, in15 cluding but not limited to existing levels of work16 force skills and competencies, and educational pro17 grams available for workforce training and future

18 employment needs.

19 ‘‘(8) A description of how the plan will adapt to

20 changing markets, business cycles, and other vari21 ables.

22 ‘‘(9) A graduation strategy through which the

23 eligible community demonstrates that the community

24 will terminate the need for Federal assistance.

25 ‘‘(c) GRANTS TO DEVELOP STRATEGIC PLANS.—
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1 ‘‘(1) IN GENERAL.—The Director, upon receipt

2 of an application from a Community Economic De3 velopment Coordinating Committee on behalf of an

4 eligible community, shall award a grant to that com5 munity to be used to develop the strategic plan.

6 ‘‘(2) AMOUNT.—The amount of a grant made

7 under paragraph (1) shall be determined by the Sec8 retary, but may not exceed $100,000.

9 ‘‘(3) LIMIT.—Each community can only receive

10 1 grant for the purpose of developing a strategic

11 plan in any 5-year period.

12 ‘‘(d) SUBMISSION OF PLAN.—The strategic plan cre13 ated under subsection (a) shall be submitted to the Direc14 tor for evaluation and approval.

15 ‘‘SEC. 277. GRANTS FOR ECONOMIC DEVELOPMENT.

16 ‘‘The Director, upon receipt of an application from

17 the Community Economic Development Coordinating

18 Committee on behalf of an eligible community, may award

19 a grant to that community to carry out any project or

20 program included in the strategic plan approved under

21 section 276(d) that—

22 ‘‘(1) will be located in, or will create or preserve

23 jobs, in that eligible community; and
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1 ‘‘(2) implements the strategy of that eligible

2 community to create jobs in sectors that are ex3 pected to expand, including projects that—

4 ‘‘(A) encourage industries to locate in that

5 eligible community;

6 ‘‘(B) leverage resources to create or im7 prove Internet or telecommunications capabili8 ties to make the community more attractive for

9 business;

10 ‘‘(C) establish a funding pool for job cre11 ation through entrepreneurial activities;

12 ‘‘(D) assist existing firms in that commu13 nity to restructure or retool to become more

14 competitive in world markets and prevent job

15 loss; or

16 ‘‘(E) assist the community in acquiring the

17 resources necessary to meet the objectives set

18 out in the strategic plan.

19 ‘‘SEC. 278. AUTHORIZATION OF APPROPRIATIONS.

20 ‘‘There are authorized to be appropriated to the De21 partment of Commerce, for the period beginning October

22 1, 2001, and ending September 30, 2006, such sums as

23 may be necessary to carry out the purposes of this chap24 ter.
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1 ‘‘SEC. 279. GENERAL PROVISIONS.

2 ‘‘(a) REPORT BY THE DIRECTOR.—Not later than 6

3 months after the date of enactment of this Act and annu4 ally thereafter, the Director shall submit to the Committee

5 on Finance of the Senate and the Committee on Ways and

6 Means of the House of Representatives a report regarding

7 the programs established under this title.

8 ‘‘(b) REGULATIONS.—The Secretary shall prescribe

9 such regulations as are necessary to carry out the provi10 sions of this chapter.’’.

11 ‘‘(c) SUPPLEMENT NOT SUPPLANT.—Funds appro12 priated under this chapter shall be used to supplement and

13 not supplant other Federal, State, and local public funds

14 expended to provide economic development assistance for

15 communities.’’.

16 TITLE IV—TRADE ADJUSTMENT

17 ASSISTANCE FOR FARMERS

18 SEC. 401. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.

19 Title II of the Trade Act of 1974 (19 U.S.C. 2251

20 et seq.) is amended by adding at the end the following

21 new chapter:

22 ‘‘CHAPTER 6—ADJUSTMENT ASSISTANCE

23 FOR FARMERS

24 ‘‘SEC. 291. DEFINITIONS.

25 ‘‘In this chapter:
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1 ‘‘(1) AGRICULTURAL COMMODITY.—The term

2 ‘agricultural commodity’ means any agricultural

3 commodity (including livestock, fish, or harvested

4 seafood) in its raw or natural state.

5 ‘‘(2) AGRICULTURAL COMMODITY PRODUCER.—

6 The term ‘agricultural commodity producer’ means

7 any person who is engaged in the production and

8 sale of an agricultural commodity in the United

9 States and who owns or shares the ownership and

10 risk of loss of the agricultural commodity.

11 ‘‘(3) CONTRIBUTED IMPORTANTLY.—

12 ‘‘(A) IN GENERAL.—The term ‘contributed

13 importantly’ means a cause which is important

14 but not necessarily more important than any

15 other cause.

16 ‘‘(B) DETERMINATION OF CONTRIBUTED

17 IMPORTANTLY.—The determination of whether

18 imports of articles like or directly competitive

19 with an agricultural commodity with respect to

20 which the petition under this chapter was filed

21 contributed importantly to a decline in the price

22 of the agricultural commodity shall be made by

23 the Secretary of Agriculture.
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1 ‘‘(4) DULY AUTHORIZED REPRESENTATIVE.—

2 The term ‘duly authorized representative’ means an

3 association of agricultural commodity producers.

4 ‘‘(5) NATIONAL AVERAGE PRICE.—The term

5 ‘national average price’ means the national average

6 price paid to an agricultural commodity producer for

7 an agricultural commodity in a marketing year as

8 determined by the Secretary of Agriculture.

9 ‘‘(6) SECRETARY.—The term ‘Secretary’ means

10 the Secretary of Agriculture.

11 ‘‘SEC. 292. PETITIONS; GROUP ELIGIBILITY.

12 ‘‘(a) IN GENERAL.—A petition for a certification of

13 eligibility to apply for adjustment assistance under this

14 chapter may be filed with the Secretary by a group of agri15 cultural commodity producers or by their duly authorized

16 representative. Upon receipt of the petition, the Secretary

17 shall promptly publish notice in the Federal Register that

18 the Secretary has received the petition and initiated an

19 investigation.

20 ‘‘(b) HEARINGS.—If the petitioner, or any other per21 son found by the Secretary to have a substantial interest

22 in the proceedings, submits not later than 10 days after

23 the date of the Secretary’s publication under subsection

24 (a) a request for a hearing, the Secretary shall provide

25 for a public hearing and afford such interested persons
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1 an opportunity to be present, to produce evidence, and to

2 be heard.

3 ‘‘(c) GROUP ELIGIBILITY REQUIREMENTS.—The

4 Secretary shall certify a group of agricultural commodity

5 producers as eligible to apply for adjustment assistance

6 under this chapter if the Secretary determines—

7 ‘‘(1) that the national average price for the ag8 ricultural commodity, or a class of goods within the

9 agricultural commodity, produced by the group for

10 the most recent marketing year for which the na11 tional average price is available is less than 80 per12 cent of the average of the national average price for

13 such agricultural commodity, or such class of goods,

14 for the 5 marketing years preceding the most recent

15 marketing year; and

16 ‘‘(2) that increases in imports of articles like or

17 directly competitive with the agricultural commodity,

18 or class of goods within the agricultural commodity,

19 produced by the group contributed importantly to

20 the decline in price described in paragraph (1).

21 ‘‘(d) SPECIAL RULE FOR QUALIFIED SUBSEQUENT

22 YEARS.—A group of agricultural commodity producers

23 certified as eligible under section 293 shall be eligible to

24 apply for assistance under this chapter in any qualified
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1 year after the year the group is first certified, if the Sec2 retary determines that—

3 ‘‘(1) the national average price for the agricul4 tural commodity, or class of goods within the agri5 cultural commodity, produced by the group for the

6 most recent marketing year for which the national

7 average price is available is equal to or less than the

8 price determined under subsection (c)(1); and

9 ‘‘(2) the requirements of subsection (c)(2) are

10 met.

11 ‘‘(e) DETERMINATION OF QUALIFIED YEAR AND

12 COMMODITY.—In this chapter:

13 ‘‘(1) QUALIFIED YEAR.—The term ‘qualified

14 year’, with respect to a group of agricultural com15 modity producers certified as eligible under section

16 293, means each consecutive year after the year in

17 which the group is certified that the Secretary

18 makes the determination under subsection (c) or (d),

19 as the case may be.

20 ‘‘(2) CLASSES OF GOODS WITHIN A COM21 MODITY.—In any case in which there are separate

22 classes of goods within an agricultural commodity,

23 the Secretary shall treat each class as a separate

24 commodity in determining group eligibility, the na-
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1 tional average price, and level of imports under this

2 section and section 296.

3 ‘‘SEC. 293. DETERMINATIONS BY SECRETARY OF AGRI4 CULTURE.

5 ‘‘(a) IN GENERAL.—As soon as practicable after the

6 date on which a petition is filed under section 292, but

7 in any event not later than 60 days after that date, the

8 Secretary shall determine whether the petitioning group

9 meets the requirements of section 292 (c) or (d), as the

10 case may be and shall, if the group meets the require11 ments, issue a certification of eligibility to apply for assist12 ance under this chapter covering agricultural commodity

13 producers in any group that meet the requirements. Each

14 certification shall specify the date on which eligibility

15 under this chapter begins.

16 ‘‘(b) NOTICE.—Upon making a determination on a

17 petition, the Secretary shall promptly publish a summary

18 of the determination in the Federal Register, together with

19 the Secretary’s reasons for making the determination.

20 ‘‘(c) TERMINATION OF CERTIFICATION.—Whenever

21 the Secretary determines, with respect to any certification

22 of eligibility under this chapter, that the decline in price

23 for the agricultural commodity covered by the certification

24 is no longer attributable to the conditions described in sec25 tion 292, the Secretary shall terminate such certification
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1 and promptly cause notice of such termination to be pub2 lished in the Federal Register, together with the Sec3 retary’s reasons for making such determination.

4 ‘‘SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN

5 INTERNATIONAL TRADE COMMISSION BE6 GINS INVESTIGATION.

7 ‘‘(a) IN GENERAL.—Whenever the International

8 Trade Commission (in this chapter referred to as the

9 ‘Commission’) begins an investigation under section 202

10 with respect to an agricultural commodity, the Commis11 sion shall immediately notify the Secretary of the inves12 tigation. Upon receipt of the notification, the Secretary

13 shall immediately conduct a study of—

14 ‘‘(1) the number of agricultural commodity pro15 ducers producing a like or directly competitive agri16 cultural commodity who have been or are likely to be

17 certified as eligible for adjustment assistance under

18 this chapter, and

19 ‘‘(2) the extent to which the adjustment of such

20 producers to the import competition may be facili21 tated through the use of existing programs.

22 ‘‘(b) REPORT.—Not later than 15 days after the day

23 on which the Commission makes its report under section

24 202(f), the Secretary shall submit a report to the Presi25 dent setting forth the findings of the study under sub-
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1 section (a). Upon making his report to the President, the

2 Secretary shall also promptly make it public (with the ex3 ception of information which the Secretary determines to

4 be confidential) and shall have a summary of it published

5 in the Federal Register.

6 ‘‘SEC. 295. BENEFIT INFORMATION TO AGRICULTURAL

7 COMMODITY PRODUCERS.

8 ‘‘(a) IN GENERAL.—The Secretary shall provide full

9 information to producers about the benefit allowances,

10 training, and other employment services available under

11 this title and about the petition and application proce12 dures, and the appropriate filing dates, for such allow13 ances, training, and services. The Secretary shall provide

14 whatever assistance is necessary to enable groups to pre15 pare petitions or applications for program benefits under

16 this title.

17 ‘‘(b) NOTICE OF BENEFITS.—

18 ‘‘(1) IN GENERAL.—The Secretary shall mail

19 written notice of the benefits available under this

20 chapter to each agricultural commodity producer

21 that the Secretary has reason to believe is covered

22 by a certification made under this chapter.

23 ‘‘(2) OTHER NOTICE.—The Secretary shall pub24 lish notice of the benefits available under this chap25 ter to agricultural commodity producers that are
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1 covered by each certification made under this chap2 ter in newspapers of general circulation in the areas

3 in which such producers reside.

4 ‘‘(3) OTHER FEDERAL ASSISTANCE.—The Sec5 retary shall also provide information concerning pro6 cedures for applying for and receiving all other Fed7 eral assistance and services available to workers fac8 ing economic distress.

9 ‘‘SEC. 296. QUALIFYING REQUIREMENTS FOR AGRICUL10 TURAL COMMODITY PRODUCERS.

11 ‘‘(a) IN GENERAL.—Payment of a trade adjustment

12 allowance shall be made to an adversely affected agricul13 tural commodity producer covered by a certification under

14 this chapter who files an application for such allowance

15 within 90 days after the date on which the Secretary

16 makes a determination and issues a certification of eligi17 bility under section 293, if the following conditions are

18 met:

19 ‘‘(1) The producer submits to the Secretary suf20 ficient information to establish the amount of agri21 cultural commodity covered by the application filed

22 under subsection (a) that was produced by the pro23 ducer in the most recent year.
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1 ‘‘(2) The producer certifies that the producer

2 has not received cash benefits under any provision of

3 this title other than this chapter.

4 ‘‘(3) The producer’s net farm income (as deter5 mined by the Secretary) for the most recent year is

6 less than the producer’s net farm income for the lat7 est year in which no adjustment assistance was re8 ceived by the producer under this chapter.

9 ‘‘(4) The producer certifies that the producer

10 has met with an Extension Service employee or

11 agent to obtain, at no cost to the producer, informa12 tion and technical assistance that will assist the pro13 ducer in adjusting to import competition with re14 spect to the adversely affected agricultural com15 modity, including—

16 ‘‘(A) information regarding the feasibility

17 and desirability of substituting 1 or more alter18 native commodities for the adversely affected

19 agricultural commodity; and

20 ‘‘(B) technical assistance that will improve

21 the competitiveness of the production and mar22 keting of the adversely affected agricultural

23 commodity by the producer, including yield and

24 marketing improvements.

25 ‘‘(b) AMOUNT OF CASH BENEFITS.—
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1 ‘‘(1) IN GENERAL.—Subject to the provisions of

2 section 298, an adversely affected agricultural com3 modity producer described in subsection (a) shall be

4 entitled to adjustment assistance under this chapter

5 in an amount equal to the product of—

6 ‘‘(A) one-half of the difference between—

7 ‘‘(i) an amount equal to 80 percent of

8 the average of the national average price of

9 the agricultural commodity covered by the

10 application described in subsection (a) for

11 the 5 marketing years preceding the most

12 recent marketing year, and

13 ‘‘(ii) the national average price of the

14 agricultural commodity for the most recent

15 marketing year, and

16 ‘‘(B) the amount of the agricultural com17 modity produced by the agricultural commodity

18 producer in the most recent marketing year.

19 ‘‘(2) SPECIAL RULE FOR SUBSEQUENT QUALI20 FIED YEARS.—The amount of cash benefits for a

21 qualified year shall be determined in the same man22 ner as cash benefits are determined under paragraph

23 (1) except that the average national price of the ag24 ricultural commodity shall be determined under

25 paragraph (1)(A)(i) by using the 5-marketing-year
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1 period used to determine the amount of cash bene2 fits for the first certification.

3 ‘‘(c) MAXIMUM AMOUNT OF CASH ASSISTANCE.—

4 The maximum amount of cash benefits an agricultural

5 commodity producer may receive in any 12-month period

6 shall not exceed $10,000.

7 ‘‘(d) LIMITATIONS ON OTHER ASSISTANCE.—An ag8 ricultural commodity producer entitled to receive a cash

9 benefit under this chapter—

10 ‘‘(1) shall not be eligible for any other cash

11 benefit under this title, and

12 ‘‘(2) shall be entitled to employment services

13 and training benefits under part III of subchapter C

14 of chapter 2.

15 ‘‘SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS.

16 ‘‘(a) IN GENERAL.—

17 ‘‘(1) REPAYMENT.—If the Secretary, or a court

18 of competent jurisdiction, determines that any per19 son has received any payment under this chapter to

20 which the person was not entitled, such person shall

21 be liable to repay such amount to the Secretary, ex22 cept that the Secretary may waive such repayment

23 if the Secretary determines, in accordance with

24 guidelines prescribed by the Secretary, that—
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1 ‘‘(A) the payment was made without fault

2 on the part of such person; and

3 ‘‘(B) requiring such repayment would be

4 contrary to equity and good conscience.

5 ‘‘(2) RECOVERY OF OVERPAYMENT.—Unless an

6 overpayment is otherwise recovered, or waived under

7 paragraph (1), the Secretary shall recover the over8 payment by deductions from any sums payable to

9 such person under this chapter.

10 ‘‘(b) FALSE STATEMENTS.—If the Secretary, or a

11 court of competent jurisdiction, determines that a

12 person—

13 ‘‘(1) knowingly has made, or caused another to

14 make, a false statement or representation of a mate15 rial fact, or

16 ‘‘(2) knowingly has failed, or caused another to

17 fail, to disclose a material fact,

18 and, as a result of such false statement or representation,

19 or of such nondisclosure, such person has received any

20 payment under this chapter to which the person was not

21 entitled, such person shall, in addition to any other pen22 alty provided by law, be ineligible for any further pay23 ments under this chapter.

24 ‘‘(c) NOTICE AND DETERMINATION.—Except for

25 overpayments determined by a court of competent jurisdic-
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1 tion, no repayment may be required, and no deduction

2 may be made, under this section until a determination

3 under subsection (a)(1) by the Secretary has been made,

4 notice of the determination and an opportunity for a fair

5 hearing thereon has been given to the person concerned,

6 and the determination has become final.

7 ‘‘(d) PAYMENT TO TREASURY.—Any amount recov8 ered under this section shall be returned to the Treasury

9 of the United States.

10 ‘‘(e) PENALTIES.—Whoever makes a false statement

11 of a material fact knowing it to be false, or knowingly fails

12 to disclose a material fact, for the purpose of obtaining

13 or increasing for himself or for any other person any pay14 ment authorized to be furnished under this chapter shall

15 be fined not more than $10,000 or imprisoned for not

16 more than 1 year, or both.

17 ‘‘SEC. 298. AUTHORIZATION OF APPROPRIATIONS.

18 ‘‘(a) IN GENERAL.—There are authorized to be ap19 propriated and there are appropriated to the Department

20 of Agriculture not to exceed $100,000,000 for each of the

21 fiscal years 2002 through 2006 to carry out the purposes

22 of this chapter.

23 ‘‘(b) PROPORTIONATE REDUCTION.—If in any year,

24 the amount appropriated under this chapter is insufficient

25 to meet the requirements for adjustment assistance pay-
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1 able under this chapter, the amount of assistance payable

2 under this chapter shall be reduced proportionately.’’.

3 TITLE V—CONFORMING AMEND4 MENTS AND EFFECTIVE DATE

5 SEC. 501. CONFORMING AMENDMENTS.

6 (a) AMENDMENTS TO THE TRADE ACT OF 1974.—

7 (1) ASSISTANCE TO INDUSTRIES.—Section 265

8 of the Trade Act of 1974 (19 U.S.C. 2355) is

9 amended by striking ‘‘certified as eligible to apply

10 for adjustment assistance under sections 231 or

11 251’’, and inserting ‘‘certified as eligible for trade

12 adjustment assistance benefits under section 231, or

13 as eligible to apply for adjustment assistance under

14 section 251’’.

15 (2) GENERAL ACCOUNTING OFFICE REPORT.—

16 Section 280(a) of the Trade Act of 1974 is amended

17 by striking ‘‘January 31, 1980’’ and inserting ‘‘Jan18 uary 31, 2004’’.

19 (3) JUDICIAL REVIEW.—Section 284(a) of the

20 Trade Act of 1974 (19 U.S.C. 2395(a)) is amended

21 by striking ‘‘under section 223 or section 250(c)’’

22 and all that follows through ‘‘the Secretary of Com23 merce under section 271’’ and inserting ‘‘under sec24 tion 231, a firm or its representative, or any other

25 interested domestic party aggrieved by a final deter-
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1 mination of the Secretary of Commerce under sec2 tion 251 or a farmer aggrieved by a determination

3 of the Secretary of Agriculture under section 292, or

4 a community or any other interested domestic party

5 aggrieved by a final determination of the Director of

6 the Office of Community Economic Adjustment

7 under section 273’’.

8 (4) TERMINATION.—Section 285 of the Trade

9 Act of 1974 is amended to read as follows:

10 ‘‘SEC. 285. TERMINATION.

11 ‘‘(a) ASSISTANCE FOR WORKERS.—

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), trade adjustment assistance, vouchers, al14 lowances, and other payments or benefits may not be

15 provided under chapter 2 after September 30, 2006.

16 ‘‘(2) EXCEPTION.—Notwithstanding subsection

17 (a)(1), a worker shall continue to receive trade ad18 justment assistance benefits and other benefits

19 under chapter 2 for any week for which the worker

20 meets the eligibility requirements of that chapter, if

21 on or before September 30, 2006, the worker is—

22 ‘‘(A) certified as eligible for trade adjust23 ment assistance benefits under section 231; and

24 ‘‘(B) is otherwise eligible to receive trade

25 adjustment assistance benefits under chapter 2.
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1 ‘‘(b) OTHER ASSISTANCE.—

2 ‘‘(1) ASSISTANCE FOR FIRMS.—Technical as3 sistance may not be provided under chapter 3 after

4 September 30, 2006.

5 ‘‘(2) ASSISTANCE FOR COMMUNITIES.—Tech6 nical assistance and other payments may not be pro7 vided under chapter 4 after September 30, 2006.’’.

8 (5) TABLE OF CONTENTS.—

9 (A) IN GENERAL.—The table of contents

10 for chapters 2, 3, and 4 of title II of the Trade

11 Act of 1974 is amended to read as follows:

‘‘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.
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‘‘Sec. 241. Job search allowances.

‘‘Sec. 242. Relocation allowances.

‘‘Sec. 243. Supportive services.

‘‘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 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—Community Economic Adjustment

‘‘Sec. 271. Definitions.

‘‘Sec. 272. Office of Community Economic 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.’’.

1 (B) CHAPTER 6.—The table of contents for

2 title II of the Trade Act of 1974, as amended

3 by subparagraph (A), is amended by inserting

4 after the items relating to chapter 5 the fol5 lowing:
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‘‘CHAPTER 6—ADJUSTMENT ASSISTANCE FOR FARMERS

‘‘Sec. 291. Definitions.

‘‘Sec. 292. Petitions; group eligibility.

‘‘Sec. 293. Determinations by Secretary.

‘‘Sec. 294. Study by Secretary 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.’’.

1 (b) INTERNAL REVENUE CODE.—

2 (1) ADJUSTED GROSS INCOME.—Section

3 62(a)(12) of the Internal Revenue Code of 1986 (re4 lating to the definition of adjusted gross income) is

5 amended by striking ‘‘trade readjustment allowances

6 under section 231 or 232’’ and inserting ‘‘trade ad7 justment allowances under section 235 or 236’’.

8 (2) FEDERAL UNEMPLOYMENT.—

9 (A) IN GENERAL.—Section 3304(a)(8) of

10 the Internal Revenue Code of 1986 (relating to

11 the approval of State unemployment insurance

12 laws) is amended to read as follows:

13 ‘‘(8) compensation shall not be denied to an in14 dividual for any week because the individual is in

15 training with the approval of the State agency, or in

16 training approved by the Secretary of Labor pursu17 ant to chapter 2 of title II of the Trade Act of 1974

18 (or because of the application, to any such week in

19 training, of State law provisions relating to avail-
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1 ability for work, active search for work, or refusal to

2 accept work);’’.

3 (B) EFFECTIVE DATE.—

4 (i) IN GENERAL.—Except as provided

5 in clause (ii), the amendments made by

6 this paragraph shall apply in the case of

7 compensation paid for weeks beginning on

8 or after October 1, 2001.

9 (ii) MEETING OF STATE LEGISLA10 TURE.—

11 (I) IN GENERAL.—If the Sec12 retary of Labor identifies a State as

13 requiring a change to its statutes or

14 regulations in order to comply with

15 the amendments made by subpara16 graph (A), the amendments made by

17 subparagraph (A) shall apply in the

18 case of compensation paid for weeks

19 beginning after the earlier of—

20 (aa) the date the State

21 changes its statutes or regula22 tions in order to comply with the

23 amendments made by this sec24 tion; or
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1 (bb) the end of the first ses2 sion of the State legislature

3 which begins after the date of en4 actment of this Act or which

5 began prior to such date and re6 mained in session for at least 25

7 calendar days after such date;

8 except that in no case shall the

9 amendments made by this Act apply

10 before October 1, 2001.

11 (II) SESSION DEFINED.—In this

12 clause, the term ‘‘session’’ means a

13 regular, special, budget, or other ses14 sion of a State legislature.

15 (c) AMENDMENTS TO TITLE 28.—

16 (1) CIVIL ACTIONS AGAINST THE UNITED

17 STATES.—Section 1581(d) of title 28, United States

18 Code, is amended—

19 (A) in paragraph (1), by striking ‘‘section

20 223’’ and inserting ‘‘section 231’’; and

21 (B) in paragraph (3), by striking ‘‘section

22 271’’ and inserting ‘‘section 273’’.

23 (2) PERSONS ENTITLED TO COMMENCE A CIVIL

24 ACTION.—Section 2631 of title 28, United States

25 Code, is amended—
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1 (A) by amending subsection (d)(1) to read

2 as follows:

3 ‘‘(d)(1) A civil action to review any final determina4 tion of the Secretary of Labor under section 231 of the

5 Trade Act of 1974 with respect to the certification of

6 workers as adversely affected and eligible for trade adjust7 ment assistance under that Act may be commenced by a

8 worker, a group of workers, a certified or recognized

9 union, or an authorized representative of such worker or

10 group, that petitions for certification under that Act and

11 is aggrieved by the final determination.’’; and

12 (B) in subsection (d)(3), by striking ‘‘Sec13 retary of Commerce under section 271’’ and in14 serting ‘‘Director of the Office of Community

15 Economic Adjustment under section 273’’.

16 (3) TIME FOR COMMENCEMENT OF ACTION.—

17 Section 2636(d) of title 28, United States Code, is

18 amended by striking ‘‘under section 223 of the

19 Trade Act of 1974 or a final determination of the

20 Secretary of Commerce under section 251 or section

21 271 of such Act’’ and inserting ‘‘under section 231

22 of the Trade Act of 1974, a final determination of

23 the Secretary of Commerce under section 251 of

24 that Act, or a final determination of the Director of
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1 the Office of Community Economic Adjustment

2 under section 273 of that Act’’.

3 (4) SCOPE AND STANDARD OF REVIEW.—Sec4 tion 2640(c) of title 28, United States Code, is

5 amended by striking ‘‘under section 223 of the

6 Trade Act of 1974 or any final determination of the

7 Secretary of Commerce under section 251 or section

8 271 of such Act’’ and inserting ‘‘under section 231

9 of the Trade Act of 1974, a final determination of

10 the Secretary of Commerce under section 251 of

11 that Act, or a final determination of the Director of

12 the Office of Community Economic Adjustment

13 under section 273 of that Act’’.

14 (5) RELIEF.—Section 2643(c)(2) of title 28,

15 United States Code, is amended by striking ‘‘under

16 section 223 of the Trade Act of 1974 or any final

17 determination of the Secretary of Commerce under

18 section 251 or section 271 of such Act’’ and insert19 ing ‘‘under section 231 of the Trade Act of 1974,

20 a final determination of the Secretary of Commerce

21 under section 251 of that Act, or a final determina22 tion of the Director of the Office of Community Eco23 nomic Adjustment under section 273 of that Act’’.

24 (d) AMENDMENT TO THE FOOD STAMP ACT OF

25 1977.—Section 6(o)(1)(B) of the Food Stamp Act of 1977
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1 (7 U.S.C. 2015(o)(1)(B)) is amended by striking ‘‘section

2 236’’ and inserting ‘‘section 240’’.

3 TITLE VI—SAVINGS PROVISIONS

4 AND EFFECTIVE DATE

5 SEC. 601. SAVINGS PROVISIONS.

6 (a) PROCEEDINGS NOT AFFECTED.—

7 (1) IN GENERAL.—The provisions of this Act

8 shall not affect any petition for certification for ben9 efits under chapter 2 of title II of the Trade Act of

10 1974 that is in effect on September 30, 2001. De11 terminations shall be issued, appeals shall be taken

12 therefrom, and payments shall be made under those

13 determinations, as if this Act had not been enacted,

14 and orders issued in any proceeding shall continue

15 in effect until modified, terminated, superseded, or

16 revoked by a duly authorized official, by a court of

17 competent jurisdiction, or by operation of law.

18 (2) MODIFICATION OR DISCONTINUANCE.—

19 Nothing in this subsection shall be deemed to pro20 hibit the discontinuance or modification of any pro21 ceeding under the same terms and conditions and to

22 the same extent that the proceeding could have been

23 discontinued or modified if this Act had not been en24 acted.
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1 (b) SUITS NOT AFFECTED.—The provisions of this

2 Act shall not affect any suit commenced before October

3 1, 2001, and in all those suits, proceedings shall be had,

4 appeals taken, and judgments rendered in the same man5 ner and with the same effect as if this Act had not been

6 enacted.

7 (c) NONABATEMENT OF ACTIONS.—No suit, action,

8 or other proceeding commenced by or against the Federal

9 Government, or by or against any individual in the official

10 capacity of that individual as an officer of the Federal

11 Government, shall abate by reason of enactment of this

12 Act.

13 SEC. 602. EFFECTIVE DATE.

14 (a) IN GENERAL.—Except as otherwise provided in

15 section 102, section 501(b)(2)(B), and subsection (b) of

16 this section, the amendments made by this Act shall apply

17 to—

18 (1) petitions for certification filed under chapter

19 2 or 3 of title II of the Trade Act of 1974 on or

20 after October 1, 2001;

21 (2) petitions for certification filed under chapter

22 2 or 3 of title II of the Trade Act of 1974 before

23 October 1, 2001, that are pending on such date; and
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1 (3) certifications for assistance under chapter 4

2 of title II of the Trade Act of 1974 issued on or

3 after October 1, 2001.

4 (b) WORKERS CERTIFIED AS ELIGIBLE BEFORE OC5 TOBER 1, 2001.—Notwithstanding subsection (a), a work6 er shall continue to receive (or be eligible to receive) trade

7 adjustment assistance and other benefits under chapter 2

8 of title II of the Trade Act of 1974, as in effect on Sep9 tember 30, 2001, for any week for which the worker meets

10 the eligibility requirements of such chapter II as in effect

11 on such date, if on or before September 30, 2001, the

12 worker—

13 (1) was certified as eligible for trade adjust14 ment assistance benefits under such chapter as in

15 effect on such date; and

16 (2) would otherwise be eligible to receive trade

17 adjustment assistance benefits under such chapter

18 as in effect on such date.

19 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

20 (a) SHORT TITLE.—This Act may be cited as the

21 ‘‘Trade Adjustment Assistance for Workers, Farmers, Fish22 ermen, Communities, and Firms Act of 2002’’.

23 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

TITLE I—TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

Sec. 101. Adjustment assistance for workers.

Sec. 102. Displaced worker self-employment training pilot program.
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TITLE II—TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

Sec. 201. Reauthorization of program.

TITLE III—TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

Sec. 301. Purpose.

Sec. 302. Trade adjustment assistance for communities.

TITLE IV—TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

Sec. 401. Trade adjustment assistance for farmers.

TITLE V—TRADE ADJUSTMENT ASSISTANCE FOR FISHERMEN

Sec. 501. Trade adjustment assistance for fishermen.

TITLE VI—HEALTH INSURANCE COVERAGE OPTIONS FOR

INDIVIDUALS ELIGIBLE FOR TRADE ADJUSTMENT ASSISTANCE

Sec. 601. Premium assistance for COBRA continuation coverage for individuals

and their families.

Sec. 602. State option to provide temporary medicaid coverage for certain uninsured individuals.

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

Sec. 604. Definitions.

TITLE VII—CONFORMING AMENDMENTS AND EFFECTIVE DATE

Sec. 701. Conforming amendments.

TITLE VIII—SAVINGS PROVISIONS AND EFFECTIVE DATE

Sec. 801. Savings provisions.

Sec. 802. Effective date.

TITLE IX—CUSTOMS REAUTHORIZATION

Sec. 900. Short title.

Subtitle A—United States Customs Service

CHAPTER 1—DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND

COMMERCIAL OPERATIONS

Sec. 901. Authorization of appropriations for noncommercial operations, commercial operations, and air and marine interdiction.

Sec. 902. Antiterrorist and illicit narcotics detection equipment for the United

States-Mexico border, United States-Canada border, and Florida

and the Gulf Coast seaports.

Sec. 903. Compliance with performance plan requirements.

CHAPTER 2—CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE

Sec. 911. Authorization of appropriations for program to prevent child pornography/child sexual exploitation.
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CHAPTER 3—MISCELLANEOUS PROVISIONS

Sec. 921. Additional Customs Service officers for United States-Canada border.

Sec. 922. Study and report relating to personnel practices of the Customs Service.

Sec. 923. Study and report relating to accounting and auditing procedures of the

Customs Service.

Sec. 924. Establishment and implementation of cost accounting system; reports.

Sec. 925. Study and report relating to timeliness of prospective rulings.

Sec. 926. Study and report relating to customs user fees.

CHAPTER 4—ANTITERRORISM PROVISIONS

Sec. 931. Emergency adjustments to offices, ports of entry, or staffing of the Customs Service.

Sec. 932. Mandatory advanced electronic information for cargo and passengers.

Sec. 933. Border search authority for certain contraband in outbound mail.

Sec. 934. Authorization of appropriations for reestablishment of customs operations in New York City.

CHAPTER 5—TEXTILE TRANSSHIPMENT PROVISIONS

Sec. 941. GAO audit of textile transshipment monitoring by Customs Service.

Sec. 942. Authorization of appropriations for textile transshipment enforcement

operations.

Sec. 943. Implementation of the African Growth and Opportunity Act.

Subtitle B—Office of the United States Trade Representative

Sec. 951. Authorization of appropriations.

Subtitle C—United States International Trade Commission

Sec. 961. Authorization of appropriations.

Subtitle D—Other Trade Provisions

Sec. 971. Increase in aggregate value of articles exempt from duty acquired

abroad by United States residents.

Sec. 972. Regulatory audit procedures.

Subtitle E—Sense of Senate

Sec. 981. Sense of Senate.

TITLE X—MISCELLANEOUS PROVISIONS

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

Sec. 1002. Sugar policy.

1 TITLE I—TRADE ADJUSTMENT

2 ASSISTANCE FOR WORKERS

3 SEC. 101. ADJUSTMENT ASSISTANCE FOR WORKERS.

4 Chapter 2 of title II of the Trade Act of 1974 (19

5 U.S.C. 2271 et seq.) is amended to read as follows:
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1 ‘‘CHAPTER 2—ADJUSTMENT ASSISTANCE

2 FOR WORKERS

3 ‘‘Subchapter A—General Provisions

4 ‘‘SEC. 221. DEFINITIONS.

5 ‘‘In this chapter:

6 ‘‘(1) ADDITIONAL COMPENSATION.—The term

7 ‘additional compensation’ has the meaning given that

8 term in section 205(3) of the Federal-State Extended

9 Unemployment Compensation Act of 1970 (26 U.S.C.

10 3304 note).

11 ‘‘(2) ADVERSELY AFFECTED EMPLOYMENT.—The

12 term ‘adversely affected employment’ means employ13 ment in a firm or appropriate subdivision of a firm,

14 if workers of that firm or subdivision are eligible to

15 apply for adjustment assistance under this chapter.

16 ‘‘(3) ADVERSELY AFFECTED WORKER.—

17 ‘‘(A) IN GENERAL.—The term ‘adversely af18 fected worker’ means a worker who is a member

19 of a group of workers certified by the Secretary

20 under section 231(a)(1) as eligible for trade ad21 justment assistance.

22 ‘‘(B) ADVERSELY AFFECTED SECONDARY

23 WORKER.—The term ‘adversely affected worker’

24 includes an adversely affected secondary worker

25 who is a member of a group of workers employed
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1 at a downstream producer or a supplier, that is

2 certified by the Secretary under section 231(a)(2)

3 as eligible for trade adjustment assistance.

4 ‘‘(4) AVERAGE WEEKLY HOURS.—The term ‘aver5 age weekly hours’ means the average hours worked by

6 a worker (excluding overtime) in the employment

7 from which the worker has been or claims to have

8 been separated in the 52 weeks (excluding weeks dur9 ing which the worker was on leave for purposes of va10 cation, sickness, maternity, military service, or any

11 other employer-authorized leave) preceding the week

12 specified in paragraph (5)(B)(ii).

13 ‘‘(5) AVERAGE WEEKLY WAGE.—

14 ‘‘(A) IN GENERAL.—The term ‘average

weekly wage’ means 1 15 ⁄13 of the total wages paid

16 to an individual in the high quarter.

17 ‘‘(B) DEFINITIONS.—For purposes of com18 puting the average weekly wage—

19 ‘‘(i) the term ‘high quarter’ means the

20 quarter in which the individual’s total

21 wages were highest among the first 4 of the

22 last 5 completed calendar quarters imme23 diately preceding the quarter in which oc24 curs the week with respect to which the com25 putation is made; and
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1 ‘‘(ii) the term ‘week’ means the week in

2 which total separation occurred, or, in cases

3 where partial separation is claimed, an ap4 propriate week, as defined in regulations

5 prescribed by the Secretary.

6 ‘‘(6) BENEFIT PERIOD.—The term ‘benefit pe7 riod’ means, with respect to an individual, the fol8 lowing:

9 ‘‘(A) STATE LAW.—The benefit year and

10 any ensuing period, as determined under appli11 cable State law, during which the individual is

12 eligible for regular compensation, additional

13 compensation, or extended compensation.

14 ‘‘(B) FEDERAL LAW.—The equivalent to the

15 benefit year or ensuing period provided for

16 under the applicable Federal unemployment in17 surance law.

18 ‘‘(7) BENEFIT YEAR.—The term ‘benefit year’

19 has the same meaning given that term in the Federal20 State Extended Unemployment Compensation Act of

21 1970 (26 U.S.C. 3304 note).

22 ‘‘(8) CONTRIBUTED IMPORTANTLY.—The term

23 ‘contributed importantly’ means a cause that is im24 portant but not necessarily more important than any

25 other cause.
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1 ‘‘(9) COOPERATING STATE.—The term ‘cooper2 ating State’ means any State that has entered into an

3 agreement with the Secretary under section 222.

4 ‘‘(10) CUSTOMIZED TRAINING.—The term ‘cus5 tomized training’ means training undertaken by an

6 individual to specifications provided by and in close

7 consultation with an employer in consideration of the

8 employer’s commitment to hire the individual upon

9 successful completion of the agreed training program.

10 ‘‘(11) DOWNSTREAM PRODUCER.—The term

11 ‘downstream producer’ means a firm that performs

12 additional, value-added production processes, includ13 ing a firm that performs final assembly, finishing, or

14 packaging of articles produced by another firm.

15 ‘‘(12) EXTENDED COMPENSATION.—The term ‘ex16 tended compensation’ has the meaning given that

17 term in section 205(4) of the Federal-State Extended

18 Unemployment Compensation Act of 1970 (26 U.S.C.

19 3304 note).

20 ‘‘(13) JOB FINDING CLUB.—The term ‘job finding

21 club’ means a job search workshop which includes a

22 period of structured, supervised activity in which

23 participants attempt to obtain jobs.
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1 ‘‘(14) JOB SEARCH PROGRAM.—The term ‘job

2 search program’ means a job search workshop or job

3 finding club.

4 ‘‘(15) JOB SEARCH WORKSHOP.—The term ‘job

5 search workshop’ means a short (1- to 3-day) sem6 inar, covering subjects such as labor market informa7 tion, re ́sume ́ writing, interviewing techniques, and

8 techniques for finding job openings, that is designed

9 to provide participants with knowledge that will en10 able the participants to find jobs.

11 ‘‘(16) ON-THE-JOB TRAINING.—The term ‘on-the12 job training’ has the same meaning as that term has

13 in section 101(31) of the Workforce Investment Act.

14 ‘‘(17) PARTIAL SEPARATION.—A partial separa15 tion shall be considered to exist with respect to an in16 dividual if—

17 ‘‘(A) the individual has had a 20-percent or

18 greater reduction in the average weekly hours

19 worked by that individual in adversely affected

20 employment; and

21 ‘‘(B) the individual has had a 20-percent or

22 greater reduction in the average weekly wage of

23 the individual with respect to adversely affected

24 employment.
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1 ‘‘(18) REGULAR COMPENSATION.—The term ‘reg2 ular compensation’ has the meaning given that term

3 in section 205(2) of the Federal-State Extended Un4 employment Compensation Act of 1970 (26 U.S.C.

5 3304 note).

6 ‘‘(19) SECRETARY.—The term ‘Secretary’ means

7 the Secretary of Labor.

8 ‘‘(20) STATE.—The term ‘State’ includes each

9 State of the United States, the District of Columbia,

10 and the Commonwealth of Puerto Rico.

11 ‘‘(21) STATE AGENCY.—The term ‘State agency’

12 means the agency of the State that administers the

13 State law.

14 ‘‘(22) STATE LAW.—The term ‘State law’ means

15 the unemployment insurance law of the State ap16 proved by the Secretary under section 3304 of the In17 ternal Revenue Code of 1986.

18 ‘‘(23) SUPPLIER.—The term ‘supplier’ means a

19 firm that produces component parts for, or articles

20 considered to be a part of, the production process for

21 articles produced by a firm or subdivision covered by

22 a certification of eligibility under section 231. The

23 term ‘supplier’ also includes a firm that provides

24 services under contract to a firm or subdivision cov25 ered by such certification.
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•S 1209 RS

1 ‘‘(24) TOTAL SEPARATION.—The term ‘total sep2 aration’ means the layoff or severance of an indi3 vidual from employment with a firm in which or in

4 a subdivision of which, adversely affected employment

5 exists.

6 ‘‘(25) UNEMPLOYMENT INSURANCE.—The term

7 ‘unemployment insurance’ means the unemployment

8 compensation payable to an individual under any

9 State law or Federal unemployment compensation

10 law, including chapter 85 of title 5, United States

11 Code, and the Railroad Unemployment Insurance Act

12 (45 U.S.C. 351 et seq.).

13 ‘‘(26) WEEK.—Except as provided in paragraph

14 5(B)(ii), the term ‘week’ means a week as defined in

15 the applicable State law.

16 ‘‘(27) WEEK OF UNEMPLOYMENT.—The term

17 ‘week of unemployment’ means a week of total, part18 total, or partial unemployment as determined under

19 the applicable State law or Federal unemployment

20 insurance law.

21 ‘‘SEC. 222. AGREEMENTS WITH STATES.

22 ‘‘(a) IN GENERAL.—The Secretary is authorized on be23 half of the United States to enter into an agreement with

24 any State or with any State agency (referred to in this

25 chapter as ‘cooperating State’ and ‘cooperating State agen-
130

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1 cy’, respectively) to facilitate the provision of services under

2 this chapter.

3 ‘‘(b) PROVISIONS OF AGREEMENTS.—Under an agree4 ment entered into under subsection (a)—

5 ‘‘(1) the cooperating State agency as an agent of

6 the United States shall—

7 ‘‘(A) facilitate the early filing of petitions

8 under section 231(b) for any group of workers

9 that the State considers is likely to be eligible for

10 benefits under this chapter;

11 ‘‘(B) assist the Secretary in the review of

12 any petition submitted from that State by

13 verifying the information and providing other

14 assistance as the Secretary may request;

15 ‘‘(C) advise each worker who applies for un16 employment insurance of the available benefits

17 under this chapter and the procedures and dead18 lines for applying for those benefits;

19 ‘‘(D) receive applications for services under

20 this chapter;

21 ‘‘(E) provide payments on the basis pro22 vided for in this chapter;

23 ‘‘(F) advise each adversely affected worker

24 to apply for training under section 240, and of
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•S 1209 RS

1 the deadlines for benefits related to enrollment in

2 training under this chapter;

3 ‘‘(G) ensure that the State employees with

4 responsibility for carrying out an agreement en5 tered into under subsection (a)—

6 ‘‘(i) inform adversely affected workers

7 covered by a certification issued under sec8 tion 231(c) of the workers’ (and individual

9 member’s of the worker’s family) potential

10 eligibility for—

11 ‘‘(I) medical assistance under the

12 medicaid program established under

13 title XIX of the Social Security Act (42

14 U.S.C. 1396a et seq.);

15 ‘‘(II) child health assistance under

16 the State children’s health insurance

17 program established under title XXI of

18 that Act (42 U.S.C. 1397aa et seq.);

19 ‘‘(III) child care services for

20 which assistance is provided under the

21 Child Care and Development Block

22 Grant Act of 1990 (42 U.S.C. 9858 et

23 seq.); and

24 ‘‘(IV) other Federal- and State25 funded health care, child care, trans-
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•S 1209 RS

1 portation, and assistance programs for

2 which the workers may be eligible; and

3 ‘‘(ii) provide such workers with infor4 mation regarding how to apply for such as5 sistance, services, and programs;

6 ‘‘(H) provide adversely affected workers re7 ferral to training services approved under title I

8 of the Workforce Investment Act of 1998 (29

9 U.S.C. 2801 et seq.), and any other appropriate

10 Federal or State program designed to assist dis11 located workers or unemployed individuals, con12 sistent with the requirements of subsection (b)(2);

13 ‘‘(I) collect and transmit to the Secretary

14 any data as the Secretary shall reasonably re15 quire to assist the Secretary in assuring the ef16 fective and efficient performance of the programs

17 carried out under this chapter; and

18 ‘‘(J) otherwise actively cooperate with the

19 Secretary and with other Federal and State

20 agencies in providing payments and services

21 under this chapter, including participation in

22 the performance measurement system established

23 by the Secretary under section 224.

24 ‘‘(2) the cooperating State shall—
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1 ‘‘(A) arrange for the provision of services

2 under this chapter through the one-stop delivery

3 system established in section 134(c) of the Work4 force Investment Act of 1998 (29 U.S.C. 2864(c))

5 where available;

6 ‘‘(B) provide to adversely affected workers

7 statewide rapid response activities under section

8 134(a)(2)(A) of the Workforce Investment Act of

9 1998 (29 U.S.C. 2864(a)(2)(A)) in the same

10 manner and to the same extent as any other

11 worker eligible for those activities;

12 ‘‘(C) afford adversely affected workers the

13 services provided under section 134(d) of the

14 Workforce Investment Act of 1998 (29 U.S.C.

15 92864(d)) in the same manner and to the same

16 extent as any other worker eligible for those serv17 ices; and

18 ‘‘(D) provide training services under this

19 chapter using training providers approved under

20 title I of the Workforce Investment Act of 1998

21 (29 U.S.C. 2801 et seq.) which may include com22 munity colleges, and other effective providers of

23 training services.

24 ‘‘(c) OTHER PROVISIONS.—
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1 ‘‘(1) APPROVAL OF TRAINING PROVIDERS.—The

2 Secretary shall ensure that the training services pro3 vided by cooperating States are provided by organiza4 tions approved by the Secretary to effectively assist

5 workers eligible for assistance under this chapter.

6 ‘‘(2) AMENDMENT, SUSPENSION, OR TERMI7 NATION OF AGREEMENTS.—Each agreement entered

8 into under this section shall provide the terms and

9 conditions upon which the agreement may be amend10 ed, suspended, or terminated.

11 ‘‘(3) EFFECT ON UNEMPLOYMENT INSURANCE.—

12 Each agreement entered into under this section shall

13 provide that unemployment insurance otherwise pay14 able to any adversely affected worker will not be de15 nied or reduced for any week by reason of any right

16 to payments under this chapter.

17 ‘‘(4) COORDINATION OF WORKFORCE INVESTMENT

18 ACTIVITIES.—In order to promote the coordination of

19 Workforce Investment Act activities in each State

20 with activities carried out under this chapter, each

21 agreement entered into under this section shall pro22 vide that the State shall submit to the Secretary, in

23 such form as the Secretary may require, the descrip24 tion and information described in paragraphs (8)
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•S 1209 RS

1 and (14) of section 112(b) of the Workforce Invest2 ment Act of 1998 (29 U.S.C. 2822(b) (8) and (14)).

3 ‘‘(d) REVIEW OF STATE DETERMINATIONS.—

4 ‘‘(1) IN GENERAL.—A determination by a co5 operating State regarding entitlement to program

6 benefits under this chapter is subject to review in the

7 same manner and to the same extent as determina8 tions under the applicable State law.

9 ‘‘(2) APPEAL.—A review undertaken by a cooper10 ating State under paragraph (1) may be appealed to

11 the Secretary pursuant to such regulations as the Sec12 retary may prescribe.

13 ‘‘SEC. 223. ADMINISTRATION ABSENT STATE AGREEMENT.

14 ‘‘(a) IN GENERAL.—In any State in which there is no

15 agreement in force under section 222, the Secretary shall

16 arrange, under regulations prescribed by the Secretary, for

17 the performance of all necessary functions under this chap18 ter, including providing a hearing for any worker whose

19 application for payment is denied.

20 ‘‘(b) FINALITY OF DETERMINATION.—A final deter21 mination under subsection (a) regarding entitlement to pro22 gram benefits under this chapter is subject to review by the

23 courts in the same manner and to the same extent as is

24 provided by section 205(g) of the Social Security Act (42

25 U.S.C. 405(g)).
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•S 1209 RS

1 ‘‘SEC. 224. DATA COLLECTION; EVALUATIONS; REPORTS.

2 ‘‘(a) DATA COLLECTION.—The Secretary shall, pursu3 ant to regulations prescribed by the Secretary, collect any

4 data necessary to meet the requirements of this chapter.

5 ‘‘(b) PERFORMANCE EVALUATIONS.—The Secretary

6 shall establish an effective performance measuring system

7 to evaluate the following:

8 ‘‘(1) PROGRAM PERFORMANCE.—

9 ‘‘(A) speed of petition processing;

10 ‘‘(B) quality of petition processing;

11 ‘‘(C) cost of training programs;

12 ‘‘(D) coordination of programs under this

13 title with programs under the Workforce Invest14 ment Act (29 U.S.C. 2801 et seq.);

15 ‘‘(E) length of time participants take to

16 enter and complete training programs;

17 ‘‘(F) the effectiveness of individual contrac18 tors in providing appropriate retraining infor19 mation;

20 ‘‘(G) the effectiveness of individual approved

21 training programs in helping workers obtain em22 ployment;

23 ‘‘(H) best practices related to the provision

24 of benefits and retraining; and
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•S 1209 RS

1 ‘‘(I) other data to evaluate how individual

2 States are implementing the requirements of this

3 title.

4 ‘‘(2) PARTICIPANT OUTCOMES.—

5 ‘‘(A) reemployment rates;

6 ‘‘(B) types of jobs in which displaced work7 ers have been placed;

8 ‘‘(C) wage and benefit maintenance results;

9 ‘‘(D) training completion rates; and

10 ‘‘(E) other data to evaluate how effective

11 programs under this chapter are for partici12 pants, taking into consideration current eco13 nomic conditions in the State.

14 ‘‘(3) PROGRAM PARTICIPATION DATA.—

15 ‘‘(A) the number of workers receiving bene16 fits and the type of benefits being received;

17 ‘‘(B) the number of workers enrolled in, and

18 the duration of, training by major types of

19 training;

20 ‘‘(C) earnings history of workers that re21 flects wages before separation and wages in any

22 job obtained after receiving benefits under this

23 Act;

24 ‘‘(D) the cause of dislocation identified in

25 each certified petition; and
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•S 1209 RS

1 ‘‘(E) the number of petitions filed and

2 workers certified in each United States congres3 sional district.

4 ‘‘(c) STATE PARTICIPATION.—The Secretary shall en5 sure, to the extent practicable, through oversight and effec6 tive internal control measures the following:

7 ‘‘(1) STATE PARTICIPATION.—Participation by

8 each State in the performance measurement system

9 established under subsection (b).

10 ‘‘(2) MONITORING.—Monitoring by each State of

11 internal control measures with respect to performance

12 measurement data collected by each State.

13 ‘‘(3) RESPONSE.—The quality and speed of the

14 rapid response provided by each State under section

15 134(a)(2)(A) of the Workforce Investment Act of 1998

16 (29 U.S.C. 2864(a)(2)(A)).

17 ‘‘(d) REPORTS.—

18 ‘‘(1) REPORTS BY THE SECRETARY.—

19 ‘‘(A) INITIAL REPORT.—Not later than 6

20 months after the date of enactment of the Trade

21 Adjustment Assistance for Workers, Farmers,

22 Fishermen, Communities, and Firms Act of

23 2002, the Secretary shall submit to the Com24 mittee on Finance of the Senate and the Com-
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•S 1209 RS

1 mittee on Ways and Means of the House of Rep2 resentatives a report that—

3 ‘‘(i) describes the performance measure4 ment system established under subsection

5 (b);

6 ‘‘(ii) includes analysis of data collected

7 through the system established under sub8 section (b);

9 ‘‘(iii) includes information identifying

10 the number of workers who received waivers

11 under section 235(c) and the average dura12 tion of those during the preceding year;

13 ‘‘(iv) describes and analyzes State par14 ticipation in the system;

15 ‘‘(v) analyzes the quality and speed of

16 the rapid response provided by each State

17 under section 134(a)(2)(A) of the Workforce

18 Investment Act of 1998 (29 U.S.C.

19 2864(a)(2)(A)); and

20 ‘‘(vi) provides recommendations for

21 program improvements.

22 ‘‘(B) ANNUAL REPORT.—Not later than 1

23 year after the date the report is submitted under

24 subparagraph (A), and annually thereafter, the

25 Secretary shall submit to the Committee on Fi-
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•S 1209 RS

1 nance of the Senate and the Committee on Ways

2 and Means of the House of Representatives a re3 port that includes the information collected

4 under clauses (ii) through (v) of subparagraph

5 (A).

6 ‘‘(2) STATE REPORTS.—Pursuant to regulations

7 prescribed by the Secretary, each State shall submit

8 to the Secretary a report that details its participation

9 in the programs established under this chapter, and

10 that contains the data necessary to allow the Sec11 retary to submit the report required under paragraph

12 (1).

13 ‘‘(3) PUBLICATION.—The Secretary shall make

14 available to each State, and other public and private

15 organizations as determined by the Secretary, the

16 data gathered and evaluated through the performance

17 measurement system established under paragraph (1).

18 ‘‘SEC. 225. STUDY BY SECRETARY OF LABOR WHEN INTER19 NATIONAL TRADE COMMISSION BEGINS IN20 VESTIGATION.

21 ‘‘(a) NOTIFICATION OF INVESTIGATION.—Whenever the

22 International Trade Commission begins an investigation

23 under section 202 with respect to an industry, the Commis24 sion shall immediately notify the Secretary of that inves-
141

•S 1209 RS

1 tigation, and the Secretary shall immediately begin a study

2 of—

3 ‘‘(1) the number of workers in the domestic in4 dustry producing the like or directly competitive arti5 cle who have been or are likely to be certified as eligi6 ble for adjustment assistance under this chapter; and

7 ‘‘(2) the extent to which the adjustment of those

8 workers to the import competition may be facilitated

9 through the use of existing programs.

10 ‘‘(b) REPORT.—

11 ‘‘(1) IN GENERAL.—The Secretary shall provide

12 a report based on the study conducted under sub13 section (a) to the President not later than 15 days

14 after the day on which the Commission makes its re15 port under section 202(f).

16 ‘‘(2) PUBLICATION.—The Secretary shall

17 promptly make public the report provided to the

18 President under paragraph (1) (with the exception of

19 information which the Secretary determines to be con20 fidential) and shall have a summary of the report

21 published in the Federal Register.

22 ‘‘Subchapter B—Certifications

23 ‘‘SEC. 231. CERTIFICATION AS ADVERSELY AFFECTED

24 WORKERS.

25 ‘‘(a) ELIGIBILITY FOR CERTIFICATION.—
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1 ‘‘(1) GENERAL RULE.—A group of workers (in2 cluding workers in any agricultural firm or subdivi3 sion of an agricultural firm) shall be certified by the

4 Secretary as adversely affected workers and eligible

5 for trade adjustment assistance benefits under this

6 chapter pursuant to a petition filed under subsection

7 (b) if the Secretary determines that—

8 ‘‘(A) a significant number or proportion of

9 the workers in the workers’ firm or an appro10 priate subdivision of the firm have become to11 tally or partially separated, or are threatened to

12 become totally or partially separated; and

13 ‘‘(B)(i)(I) the value or volume of imports of

14 articles like or directly competitive with articles

15 produced by that firm or subdivision have in16 creased; and

17 ‘‘(II) the increase in the value or volume of

18 imports described in subclause (I) contributed

19 importantly to the workers’ separation or threat

20 of separation; or

21 ‘‘(ii)(I) there has been a shift in production

22 by the workers’ firm or subdivision to a foreign

23 country of articles like or directly competitive

24 with articles which are produced by that firm or

25 subdivision; and
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•S 1209 RS

1 ‘‘(II) the shift in production described in

2 subclause (I) contributed importantly to the

3 workers’ separation or threat of separation.

4 ‘‘(2) ADVERSELY AFFECTED SECONDARY WORK5 ER.—A group of workers (including workers in any

6 agricultural firm or subdivision of an agricultural

7 firm) shall be certified by the Secretary as adversely

8 affected and eligible for trade adjustment assistance

9 benefits under this chapter pursuant to a petition

10 filed under subsection (b) if the Secretary determines

11 that—

12 ‘‘(A) a significant number or proportion of

13 the workers in the workers’ firm or an appro14 priate subdivision of the firm have become to15 tally or partially separated, or are threatened to

16 become totally or partially separated;

17 ‘‘(B) the workers’ firm (or subdivision) is a

18 supplier to a firm (or subdivision) or down19 stream producer to a firm (or subdivision) de20 scribed in paragraph (1)(B) (i) or (ii); and

21 ‘‘(C) a loss of business with a firm (or sub22 division) described in paragraph (1)(B) (i) or

23 (ii) contributed importantly to the workers’ sepa24 ration or threat of separation determined under

25 subparagraph (A).
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1 ‘‘(3) SPECIAL PROVISIONS.—

2 ‘‘(A) OIL AND NATURAL GAS PRODUCERS.—

3 For purposes of this section, any firm, or appro4 priate subdivision of a firm, that engages in ex5 ploration or drilling for oil or natural gas shall

6 be considered to be a firm producing oil or nat7 ural gas.

8 ‘‘(B) OIL AND NATURAL GAS IMPORTS.—For

9 purposes of this section, any firm, or appro10 priate subdivision of a firm, that engages in ex11 ploration or drilling for oil or natural gas, or

12 otherwise produces oil or natural gas, shall be

13 considered to be producing articles directly com14 petitive with imports of oil and with imports of

15 natural gas.

16 ‘‘(C) TACONITE.—For purposes of this sec17 tion, taconite pellets produced in the United

18 States shall be considered to be an article that is

19 like or directly competitive with imports of semi20 finished steel slab.

21 ‘‘(D) SERVICE WORKERS.—

22 ‘‘(i) IN GENERAL.—Not later than 6

23 months after the date of enactment of the

24 Trade Adjustment Assistance for Workers,

25 Farmers, Fishermen, Communities, and
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•S 1209 RS

1 Firms Act of 2002, the Secretary shall es2 tablish a program to provide assistance

3 under this chapter to domestic operators of

4 motor carriers who are adversely affected by

5 competition from foreign owned and oper6 ated motor carriers.

7 ‘‘(ii) DATA COLLECTION SYSTEM.—Not

8 later than 6 months after the date of enact9 ment of the Trade Adjustment Assistance for

10 Workers, Farmers, Fishermen, Commu11 nities, and Firms Act of 2002, the Secretary

12 shall put in place a system to collect data

13 on adversely affected service workers that

14 includes the number of workers by State, in15 dustry, and cause of dislocation for each

16 worker.

17 ‘‘(iii) REPORT.—Not later than 2

18 years after the date of enactment of the

19 Trade Adjustment Assistance for Workers,

20 Farmers, Fishermen, Communities, and

21 Firms Act of 2002, the Secretary shall re22 port to Congress the results of a study on

23 ways for extending the programs in this

24 chapter to adversely affected service workers,

25 including recommendations for legislation.
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1 ‘‘(b) PETITIONS.—

2 ‘‘(1) IN GENERAL.—A petition for certification of

3 eligibility for trade adjustment assistance under this

4 chapter for a group of adversely affected workers shall

5 be filed simultaneously with the Secretary and with

6 the Governor of the State in which the firm or sub7 division of the firm employing the workers is located.

8 ‘‘(2) PERSONS WHO MAY FILE A PETITION.—A

9 petition under paragraph (1) may be filed by any of

10 the following:

11 ‘‘(A) WORKERS.—A group of workers (in12 cluding workers in an agricultural firm or sub13 division of any agricultural firm).

14 ‘‘(B) WORKER REPRESENTATIVES.—The

15 certified or recognized union or other duly ap16 pointed representative of the workers.

17 ‘‘(C) WORKER ADJUSTMENT AND RETRAIN18 ING NOTIFICATION.—Any entity to which notice

19 of a plant closing or mass layoff must be given

20 under section 3 of the Worker Adjustment and

21 Retraining Notification Act (29 U.S.C. 2102).

22 ‘‘(D) OTHER.—Employers of workers de23 scribed in subparagraph (A), one-stop operators

24 or one-stop partners (as defined in section 101 of

25 the Workforce Investment Act of 1998 (29 U.S.C.
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•S 1209 RS

1 2801)), or State employment agencies, on behalf

2 of the workers.

3 ‘‘(E) REQUEST TO INITIATE CERTIFI4 CATION.—The President, or the Committee on

5 Finance of the Senate or the Committee on Ways

6 and Means of the House of Representatives (by

7 resolution), may direct the Secretary to initiate

8 a certification process under this chapter to de9 termine the eligibility for trade adjustment as10 sistance of a group of workers.

11 ‘‘(3) ACTIONS BY GOVERNOR.—

12 ‘‘(A) COOPERATING STATE.—Upon receipt

13 of a petition, the Governor of a cooperating State

14 shall ensure that the requirements of the agree15 ment entered into under section 222 are met.

16 ‘‘(B) OTHER STATES.—Upon receipt of a

17 petition, the Governor of a State that has not en18 tered into an agreement under section 222 shall

19 coordinate closely with the Secretary to ensure

20 that workers covered by a petition are—

21 ‘‘(i) provided with all available serv22 ices, including rapid response activities

23 under section 134 of the Workforce Invest24 ment Act (29 U.S.C. 2864);
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1 ‘‘(ii) informed of the workers’ (and in2 dividual member’s of the worker’s family)

3 potential eligibility for—

4 ‘‘(I) medical assistance under the

5 medicaid program established under

6 title XIX of the Social Security Act (42

7 U.S.C. 1396a et seq.);

8 ‘‘(II) child health assistance under

9 the State children’s health insurance

10 program established under title XXI of

11 that Act (42 U.S.C. 1397aa et seq.);

12 ‘‘(III) child care services for

13 which assistance is provided under the

14 Child Care and Development Block

15 Grant Act of 1990 (42 U.S.C. 9858 et

16 seq.); and

17 ‘‘(IV) other Federal and State

18 funded health care, child care, trans19 portation, and assistance programs

20 that the workers may be eligible for;

21 and

22 ‘‘(iii) provided with information re23 garding how to apply for the assistance,

24 services, and programs described in clause

25 (ii).
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1 ‘‘(c) ACTIONS BY SECRETARY.—

2 ‘‘(1) IN GENERAL.—As soon as possible after the

3 date on which a petition is filed under subsection (b),

4 but not later than 40 days after that date, the Sec5 retary shall determine whether the petitioning group

6 meets the requirements of subsection (a), and if war7 ranted, shall issue a certification of eligibility for

8 trade adjustment assistance pursuant to this sub9 chapter. In making the determination, the Secretary

10 shall consult with all petitioning entities.

11 ‘‘(2) PUBLICATION OF DETERMINATION.—Upon

12 making a determination under paragraph (1), the

13 Secretary shall promptly publish a summary of the

14 determination in the Federal Register together with

15 the reasons for making that determination.

16 ‘‘(3) DATE SPECIFIED IN CERTIFICATION.—Each

17 certification made under this subsection shall specify

18 the date on which the total or partial separation

19 began or threatened to begin with respect to a group

20 of certified workers.

21 ‘‘(4) PROJECTED TRAINING NEEDS.—The Sec22 retary shall inform the State Workforce Investment

23 Board or equivalent agency, and other public or pri24 vate agencies, institutions, employers, and labor orga25 nizations, as appropriate, of each certification issued
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1 under section 231 and of projections, if available, of

2 the need for training under section 240 as a result of

3 that certification.

4 ‘‘(d) SCOPE OF CERTIFICATION.—

5 ‘‘(1) IN GENERAL.—A certification issued under

6 subsection (c) shall cover adversely affected workers in

7 any group that meets the requirements of subsection

8 (a), whose total or partial separation occurred on or

9 after the date on which the petition was filed under

10 subsection (b).

11 ‘‘(2) WORKERS SEPARATED PRIOR TO CERTIFI12 CATION.—A certification issued under subsection (c)

13 shall cover adversely affected workers whose total or

14 partial separation occurred not more than 1 year

15 prior to the date on which the petition was filed

16 under subsection (b).

17 ‘‘(e) TERMINATION OF CERTIFICATION.—

18 ‘‘(1) IN GENERAL.—If the Secretary determines,

19 with respect to any certification of eligibility, that

20 workers separated from a firm or subdivision covered

21 by a certification of eligibility are no longer adversely

22 affected workers, the Secretary shall terminate the cer23 tification.

24 ‘‘(2) PUBLICATION OF TERMINATION.—The Sec25 retary shall promptly publish notice of any termi-
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1 nation made under paragraph (1) in the Federal Reg2 ister together with the reasons for making that deter3 mination.

4 ‘‘(3) APPLICATION.—Any determination made

5 under paragraph (1) shall apply only to total or par6 tial separations occurring after the termination date

7 specified by the Secretary.

8 ‘‘SEC. 232. BENEFIT INFORMATION TO WORKERS.

9 ‘‘(a) IN GENERAL.—The Secretary shall, in accordance

10 with the provisions of section 222 or 223, as appropriate,

11 provide prompt and full information to adversely affected

12 workers covered by a certification issued under section

13 231(c), including information regarding—

14 ‘‘(1) benefit allowances, training, and other em15 ployment services available under this chapter;

16 ‘‘(2) petition and application procedures under

17 this chapter;

18 ‘‘(3) appropriate filing dates for the allowances,

19 training, and services available under this chapter;

20 and

21 ‘‘(4) procedures for applying for and receiving

22 all other Federal benefits and services available to

23 separated workers during a period of unemployment.

24 ‘‘(b) ASSISTANCE TO GROUPS OF WORKERS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall provide

2 any necessary assistance to enable groups of workers

3 to prepare petitions or applications for program bene4 fits.

5 ‘‘(2) ASSISTANCE FROM STATES.—The Secretary

6 shall ensure that cooperating States fully comply with

7 the agreements entered into under section 222 and

8 shall periodically review that compliance.

9 ‘‘(c) NOTICE.—

10 ‘‘(1) IN GENERAL.—Not later that 15 days after

11 a certification is issued under section 231 (or as soon

12 as practicable after separation), the Secretary shall

13 provide written notice of the benefits available under

14 this chapter to each worker whom the Secretary has

15 reason to believe is covered by the certification.

16 ‘‘(2) PUBLICATION OF NOTICE.—The Secretary

17 shall publish notice of the benefits available under

18 this chapter to workers covered by each certification

19 made under section 231 in newspapers of general cir20 culation in the areas in which those workers reside.

21 ‘‘Subchapter C—Program Benefits

22 ‘‘PART I—GENERAL PROVISIONS

23 ‘‘SEC. 234. COMPREHENSIVE ASSISTANCE.

24 ‘‘Workers covered by a certification issued by the Sec25 retary under section 231 shall be eligible for the following:
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1 ‘‘(1) Trade adjustment allowances as described

2 in sections 235 through 238.

3 ‘‘(2) Employment services as described in section

4 239.

5 ‘‘(3) Training as described in section 240.

6 ‘‘(4) Job search allowances as described in sec7 tion 241.

8 ‘‘(5) Relocation allowances as described in sec9 tion 242.

10 ‘‘(6) Supportive services and wage insurance as

11 described in section 243.

12 ‘‘(7) Health insurance coverage options as de13 scribed in title VI of the Trade Adjustment Assistance

14 for Workers, Farmers, Fishermen, Communities, and

15 Firms Act of 2002.

16 ‘‘PART II—TRADE ADJUSTMENT ALLOWANCES

17 ‘‘SEC. 235. QUALIFYING REQUIREMENTS FOR WORKERS.

18 ‘‘(a) IN GENERAL.—Payment of a trade adjustment al19 lowance shall be made to an adversely affected worker cov20 ered by a certification under section 231 who files an appli21 cation for the allowance for any week of unemployment that

22 begins more than 60 days after the date on which the peti23 tion that resulted in the certification was filed under section

24 231, if the following conditions are met:
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1 ‘‘(1) TIME OF TOTAL OR PARTIAL SEPARATION

2 FROM EMPLOYMENT.—The adversely affected worker’s

3 total or partial separation before the worker’s appli4 cation under this chapter occurred—

5 ‘‘(A) on or after the date, as specified in the

6 certification under which the worker is covered,

7 on which total or partial separation from ad8 versely affected employment began or threatened

9 to begin;

10 ‘‘(B) before the expiration of the 2-year pe11 riod beginning on the date on which the certifi12 cation under section 231 was issued; and

13 ‘‘(C) before the termination date (if any)

14 determined pursuant to section 231(e).

15 ‘‘(2) EMPLOYMENT REQUIRED.—

16 ‘‘(A) IN GENERAL.—The adversely affected

17 worker had, in the 52-week period ending with

18 the week in which the total or partial separation

19 occurred, at least 26 weeks of employment at

20 wages of $30 or more a week with a single firm

21 or subdivision of a firm.

22 ‘‘(B) UNAVAILABILITY OF DATA.—If data

23 with respect to weeks of employment with a firm

24 are not available, the worker had equivalent
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1 amounts of employment computed under regula2 tions prescribed by the Secretary.

3 ‘‘(C) WEEK OF EMPLOYMENT.—For the pur4 poses of this paragraph any week shall be treated

5 as a week of employment at wages of $30 or

6 more, if an adversely affected worker—

7 ‘‘(i) is on employer-authorized leave for

8 purposes of vacation, sickness, injury, or

9 maternity, or inactive duty training or ac10 tive duty for training in the Armed Forces

11 of the United States;

12 ‘‘(ii) does not work because of a dis13 ability that is compensable under a work14 men’s compensation law or plan of a State

15 or the United States;

16 ‘‘(iii) had employment interrupted in

17 order to serve as a full-time representative

18 of a labor organization in that firm or sub19 division; or

20 ‘‘(iv) is on call-up for purposes of ac21 tive duty in a reserve status in the Armed

22 Forces of the United States, provided that

23 active duty is ‘Federal service’ as defined in

24 section 8521(a)(1) of title 5, United States

25 Code.
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1 ‘‘(D) EXCEPTIONS.—

2 ‘‘(i) In the case of weeks described in

3 clause (i) or (iii) of subparagraph (C), or

4 both, not more than 7 weeks may be treated

5 as weeks of employment under subpara6 graph (C).

7 ‘‘(ii) In the case of weeks described in

8 clause (ii) or (iv) of subparagraph (C), not

9 more than 26 weeks may be treated as weeks

10 of employment under subparagraph (C).

11 ‘‘(3) UNEMPLOYMENT COMPENSATION.—The ad12 versely affected worker meets all of the following re13 quirements:

14 ‘‘(A) ENTITLEMENT TO UNEMPLOYMENT IN15 SURANCE.—The worker was entitled to (or would

16 be entitled to if the worker applied for) unem17 ployment insurance for a week within the benefit

18 period—

19 ‘‘(i) in which total or partial separa20 tion took place; or

21 ‘‘(ii) which began (or would have

22 begun) by reason of the filing of a claim for

23 unemployment insurance by the worker

24 after total or partial separation.
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1 ‘‘(B) EXHAUSTION OF UNEMPLOYMENT IN2 SURANCE.—The worker has exhausted all rights

3 to any regular State unemployment insurance to

4 which the worker was entitled (or would be enti5 tled if the worker had applied for any regular

6 State unemployment insurance).

7 ‘‘(C) NO UNEXPIRED WAITING PERIOD.—

8 The worker does not have an unexpired waiting

9 period applicable to the worker for any unem10 ployment insurance.

11 ‘‘(4) EXTENDED UNEMPLOYMENT COMPENSA12 TION.—The adversely affected worker, with respect to

13 a week of unemployment, would not be disqualified

14 for extended compensation payable under the Federal15 State Extended Unemployment Compensation Act of

16 1970 (26 U.S.C. 3304 note) by reason of the work ac17 ceptance and job search requirements in section

18 202(a)(3) of that Act.

19 ‘‘(5) TRAINING.—The adversely affected worker is

20 enrolled in a training program approved by the Sec21 retary under section 240(a), and the enrollment oc22 curred not later than the latest of the periods de23 scribed in subparagraph (A), (B), or (C).

24 ‘‘(A) 16 WEEKS.—The worker enrolled not

25 later than the last day of the 16th week after the
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1 worker’s most recent total separation that meets

2 the requirements of paragraphs (1) and (2).

3 ‘‘(B) 8 WEEKS.—The worker enrolled not

4 later than the last day of the 8th week after the

5 week in which the Secretary issues a certification

6 covering the worker.

7 ‘‘(C) EXTENUATING CIRCUMSTANCES.—Not8 withstanding subparagraphs (A) and (B), the

9 adversely affected worker is eligible for trade ad10 justment assistance if the worker enrolled not

11 later than 45 days after the later of the dates

12 specified in subparagraph (A) or (B), and the

13 Secretary determines there are extenuating cir14 cumstances that justify an extension in the en15 rollment period.

16 ‘‘(b) FAILURE TO PARTICIPATE IN TRAINING.—

17 ‘‘(1) IN GENERAL.—Until the adversely affected

18 worker begins or resumes participation in a training

19 program approved under section 240(a), no trade ad20 justment allowance may be paid under subsection (a)

21 to an adversely affected worker for any week or any

22 succeeding week in which—

23 ‘‘(A) the Secretary determines that—

24 ‘‘(i) the adversely affected worker—
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1 ‘‘(I) has failed to begin participa2 tion in a training program the enroll3 ment in which meets the requirement

4 of subsection (a)(5); or

5 ‘‘(II) has ceased to participate in

6 such a training program before com7 pleting the training program; and

8 ‘‘(ii) there is no justifiable cause for

9 the failure or cessation; or

10 ‘‘(B) the waiver issued to that worker under

11 subsection (c)(1) is revoked under subsection

12 (c)(2).

13 ‘‘(2) EXCEPTION.—The provisions of subsection

14 (a)(5) and paragraph (1) shall not apply with respect

15 to any week of unemployment that begins before the

16 first week following the week in which the certifi17 cation is issued under section 231.

18 ‘‘(c) WAIVERS OF TRAINING REQUIREMENTS.—

19 ‘‘(1) ISSUANCE OF WAIVERS.—The Secretary

20 may issue a written statement to an adversely af21 fected worker waiving the requirement to be enrolled

22 in training described in subsection (a) if the Sec23 retary determines that the training requirement is

24 not feasible or appropriate for the worker, because of

25 1 or more of the following reasons:
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1 ‘‘(A) RECALL.—The worker has been noti2 fied that the worker will be recalled by the firm

3 from which the separation occurred.

4 ‘‘(B) MARKETABLE SKILLS.—The worker

5 has marketable skills as determined pursuant to

6 an assessment of the worker, which may include

7 the profiling system under section 303(j) of the

8 Social Security Act (42 U.S.C. 503(j)), carried

9 out in accordance with guidelines issued by the

10 Secretary.

11 ‘‘(C) RETIREMENT.—The worker is within 2

12 years of meeting all requirements for entitlement

13 to either—

14 ‘‘(i) old-age insurance benefits under

15 title II of the Social Security Act (42

16 U.S.C. 401 et seq.) (except for application

17 therefore); or

18 ‘‘(ii) a private pension sponsored by

19 an employer or labor organization.

20 ‘‘(D) HEALTH.—The worker is unable to

21 participate in training due to the health of the

22 worker, except that a waiver under this subpara23 graph shall not be construed to exempt a worker

24 from requirements relating to the availability for

25 work, active search for work, or refusal to accept
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1 work under Federal or State unemployment com2 pensation laws.

3 ‘‘(E) ENROLLMENT UNAVAILABLE.—The

4 first available enrollment date for the approved

5 training of the worker is within 60 days after

6 the date of the determination made under this

7 paragraph, or, if later, there are extenuating cir8 cumstances for the delay in enrollment, as deter9 mined pursuant to guidelines issued by the Sec10 retary.

11 ‘‘(F) DURATION.—The duration of training

12 appropriate for the worker to obtain suitable em13 ployment exceeds the worker’s maximum entitle14 ment to basic and additional trade adjustment

15 allowances, and financial support available

16 through other Federal or State programs, includ17 ing chapter 5 of subtitle B of title I of the Work18 force Investment Act of 1998 (29 U.S.C. 2861 et

19 seq.), that would enable the worker to complete a

20 suitable training program cannot be assured.

21 ‘‘(G) EMPLOYMENT AVAILABLE.—There is

22 employment (which may include technical and

23 professional employment) available for the work24 er that offers equivalent wages to those that the

25 worker earned prior to separation.
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1 ‘‘(H) NO BENEFIT.—The worker would not

2 benefit from any training, or no training that is

3 suitable for the worker is available at a reason4 able cost.

5 ‘‘(I) NO REASONABLE EXPECTATION OF EM6 PLOYMENT.—There is no reasonable expectation

7 of employment following completion of the train8 ing.

9 ‘‘(J) TRAINING NOT AVAILABLE.—Training

10 approved by the Secretary is not reasonably

11 available to the worker from either governmental

12 agencies or private sources (which may include

13 area vocational education schools, as defined in

14 section 3 of the Carl D. Perkins Vocational and

15 Technical Education Act of 1998 (20 U.S.C.

16 2302), and employers).

17 ‘‘(K) WORKER NOT QUALIFIED.—The work18 er is not qualified to undertake and complete

19 any training.

20 ‘‘(2) DURATION OF WAIVERS.—

21 ‘‘(A) IN GENERAL.—A waiver issued under

22 paragraph (1) shall be effective for not more

23 than 6 months after the date on which the waiv24 er is issued, unless the Secretary determines oth25 erwise.
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1 ‘‘(B) REVOCATION.—The Secretary shall re2 voke a waiver issued under paragraph (1) if the

3 Secretary determines that the basis of a waiver

4 is no longer applicable to the worker.

5 ‘‘(3) AMENDMENTS UNDER SECTION 222.—

6 ‘‘(A) ISSUANCE BY COOPERATING STATES.—

7 Pursuant to an agreement under section 222, the

8 Secretary may authorize a cooperating State to

9 issue waivers as described in paragraph (1) (ex10 cept for the determination under subparagraphs

11 (F) and (G) of paragraph (1)).

12 ‘‘(B) SUBMISSION OF STATEMENTS.—An

13 agreement under section 222 shall include a re14 quirement that the cooperating State submit to

15 the Secretary the written statements provided

16 under paragraph (1) and a statement of the rea17 sons for the waiver.

18 ‘‘(4) REASONABLE EXPECTATION OF EMPLOY19 MENT.—For purposes of applying subsection (c)(1)(I),

20 a reasonable expectation of employment does not re21 quire that employment opportunities for a worker be

22 available, or offered, immediately upon the comple23 tion of training approved under this section.
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1 ‘‘SEC. 236. WEEKLY AMOUNTS.

2 ‘‘(a) IN GENERAL.—Subject to subsections (b) and (c),

3 the trade adjustment allowance payable to an adversely af4 fected worker for a week of total unemployment shall be an

5 amount equal to the most recent weekly benefit amount of

6 the unemployment insurance payable to the worker for a

7 week of total unemployment preceding the worker’s first ex8 haustion of unemployment insurance (as determined for

9 purposes of section 235(a)(3)(B)) reduced (but not below

10 zero) by—

11 ‘‘(1) any training allowance deductible under

12 subsection (c); and

13 ‘‘(2) any income that is deductible from unem14 ployment insurance under the disqualifying income

15 provisions of the applicable State law or Federal un16 employment insurance law.

17 ‘‘(b) ADJUSTMENT FOR WORKERS RECEIVING TRAIN18 ING.—

19 ‘‘(1) IN GENERAL.—Any adversely affected work20 er who is entitled to a trade adjustment allowance

21 and who is receiving training approved by the Sec22 retary, shall receive for each week in which the worker

23 is undergoing that training, a trade adjustment al24 lowance in an amount (computed for such week)

25 equal to the greater of—
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1 ‘‘(A) the amount computed under subsection

2 (a); or

3 ‘‘(B) the amount of any weekly allowance

4 for that training to which the worker would be

5 entitled under any other Federal law for the

6 training of workers, if the worker applied for

7 that allowance.

8 ‘‘(2) ALLOWANCE PAID IN LIEU OF.—Any trade

9 adjustment allowance calculated under paragraph (1)

10 shall be paid in lieu of any training allowance to

11 which the worker would be entitled under any other

12 Federal law.

13 ‘‘(3) COORDINATION WITH UNEMPLOYMENT IN14 SURANCE.—Any week in which a worker undergoing

15 training approved by the Secretary receives payments

16 from unemployment insurance shall be subtracted

17 from the total number of weeks for which a worker

18 may receive trade adjustment allowance under this

19 chapter.

20 ‘‘(c) ADJUSTMENT FOR WORKERS RECEIVING ALLOW21 ANCES UNDER OTHER FEDERAL LAW.—

22 ‘‘(1) REDUCTION IN WEEKS FOR WHICH ALLOW23 ANCE WILL BE PAID.—If a training allowance under

24 any Federal law (other than this Act) is paid to an

25 adversely affected worker for any week of unemploy-
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1 ment with respect to which the worker would be enti2 tled (determined without regard to any disqualifica3 tion under section 235(b)) to a trade adjustment al4 lowance if the worker applied for that allowance, each

5 week of unemployment shall be deducted from the

6 total number of weeks of trade adjustment allowance

7 otherwise payable to that worker under section 235(a)

8 when the worker applies for a trade adjustment allow9 ance and is determined to be entitled to the allowance.

10 ‘‘(2) PAYMENT OF DIFFERENCE.—If the training

11 allowance paid to a worker for any week of unem12 ployment is less than the amount of the trade adjust13 ment allowance to which the worker would be entitled

14 if the worker applied for the trade adjustment allow15 ance, the worker shall receive, when the worker ap16 plies for a trade adjustment allowance and is deter17 mined to be entitled to the allowance, a trade adjust18 ment allowance for that week equal to the difference

19 between the training allowance and the trade adjust20 ment allowance computed under subsection (b).

21 ‘‘SEC. 237. LIMITATIONS ON TRADE ADJUSTMENT ALLOW22 ANCES.

23 ‘‘(a) AMOUNT PAYABLE.—The maximum amount of

24 trade adjustment allowance payable to an adversely affected

25 worker, with respect to the period covered by any certifi-
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1 cation, shall be the amount that is the product of 104 multi2 plied by the trade adjustment allowance payable to the

3 worker for a week of total unemployment (as determined

4 under section 236) reduced by the total sum of the regular

5 State unemployment insurance to which the worker was en6 titled (or would have been entitled if the worker had applied

7 for unemployment insurance) in the worker’s first benefit

8 period described in section 235(a)(3)(A).

9 ‘‘(b) DURATION OF PAYMENTS.—

10 ‘‘(1) IN GENERAL.—Except as provided in para11 graph (2), a trade adjustment allowance shall not be

12 paid for any week occurring after the close of the 104-

13 week period that begins with the first week following

14 the week in which the adversely affected worker was

15 most recently totally separated—

16 ‘‘(A) within the period that is described in

17 section 235(a)(1); and

18 ‘‘(B) with respect to which the worker meets

19 the requirements of section 235(a)(2).

20 ‘‘(2) SPECIAL RULES.—

21 ‘‘(A) BREAK IN TRAINING.—For purposes of

22 this chapter, a worker shall be treated as partici23 pating in a training program approved by the

24 Secretary under section 240(a) during any week
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1 that is part of a break in a training that does

2 not exceed 30 days if—

3 ‘‘(i) the worker was participating in a

4 training program approved under section

5 240(a) before the beginning of the break in

6 training; and

7 ‘‘(ii) the break is provided under the

8 training program.

9 ‘‘(B) ON-THE-JOB TRAINING.—No trade ad10 justment allowance shall be paid to a worker

11 under this chapter for any week during which

12 the worker is receiving on-the-job training, ex13 cept that a trade adjustment allowance shall be

14 paid if a worker is enrolled in a non-paid cus15 tomized training program.

16 ‘‘(C) SMALL BUSINESS ADMINISTRATION

17 PILOT PROGRAM.—An adversely affected worker

18 who is participating in a self-employment train19 ing program established by the Director of the

20 Small Business Administration pursuant to sec21 tion 102 of the Trade Adjustment Assistance for

22 Workers, Farmers, Fishermen, Communities, and

23 Firms Act of 2002, shall not be ineligible to re24 ceive benefits under this chapter.
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1 ‘‘(c) ADJUSTMENT OF AMOUNTS PAYABLE.—Amounts

2 payable to an adversely affected worker under this chapter

3 shall be subject to adjustment on a week-to-week basis as

4 may be required by section 236.

5 ‘‘(d) YEAR-END ADJUSTMENT.—

6 ‘‘(1) IN GENERAL.—Notwithstanding any other

7 provision of this Act or any other provision of law,

8 if the benefit year of a worker ends within an ex9 tended benefit period, the number of weeks of extended

10 benefits that the worker would, but for this subsection,

11 be entitled to in that extended benefit period shall not

12 be reduced by the number of weeks for which the

13 worker was entitled, during that benefit year, to trade

14 adjustment allowances under this part.

15 ‘‘(2) EXTENDED BENEFITS PERIOD.—For the

16 purpose of this section the term ‘extended benefit pe17 riod’ has the same meaning given that term in the

18 Federal-State Extended Unemployment Compensation

19 Act of 1970 (26 U.S.C. 3304 note).

20 ‘‘SEC. 238. APPLICATION OF STATE LAWS.

21 ‘‘(a) IN GENERAL.—Except where inconsistent with

22 the provisions of this chapter and subject to such regulations

23 as the Secretary may prescribe, the availability and dis24 qualification provisions of the State law under which an

25 adversely affected worker is entitled to unemployment in-
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1 surance (whether or not the worker has filed a claim for

2 such insurance), or, if the worker is not so entitled to unem3 ployment insurance, of the State in which the worker was

4 totally or partially separated, shall apply to a worker that

5 files an application for trade adjustment assistance.

6 ‘‘(b) DURATION OF APPLICABILITY.—The State law de7 termined to be applicable with respect to a separation of

8 an adversely affected worker shall remain applicable for

9 purposes of subsection (a), with respect to a separation

10 until the worker becomes entitled to unemployment insur11 ance under another State law (whether or not the worker

12 has filed a claim for that insurance).

13 ‘‘PART III—EMPLOYMENT SERVICES, TRAINING,

14 AND OTHER ALLOWANCES

15 ‘‘SEC. 239. EMPLOYMENT SERVICES.

16 ‘‘The Secretary shall, in accordance with section 222

17 or 223, as applicable, make every reasonable effort to secure

18 for adversely affected workers covered by a certification

19 under section 231, counseling, testing, placement, and other

20 services provided for under any other Federal law.

21 ‘‘SEC. 240. TRAINING.

22 ‘‘(a) APPROVED TRAINING PROGRAMS.—

23 ‘‘(1) IN GENERAL.—The Secretary shall approve

24 training programs that include—
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1 ‘‘(A) on-the-job training or customized

2 training;

3 ‘‘(B) any employment or training activity

4 provided through a one-stop delivery system

5 under chapter 5 of subtitle B of title I of the

6 Workforce Investment Act of 1998 (29 U.S.C.

7 2861 et seq.);

8 ‘‘(C) any program of adult education;

9 ‘‘(D) any training program (other than a

10 training program described in paragraph (3))

11 for which all, or any portion, of the costs of

12 training the worker are paid—

13 ‘‘(i) under any Federal or State pro14 gram other than this chapter; or

15 ‘‘(ii) from any source other than this

16 section; and

17 ‘‘(E) any other training program that the

18 Secretary determines is acceptable to meet the

19 needs of an adversely affected worker.

20 In making the determination under subparagraph

21 (E), the Secretary shall consult with interested par22 ties.

23 ‘‘(2) TRAINING AGREEMENTS.—Before approving

24 any training to which subsection (f)(1)(C) may

25 apply, the Secretary may require that the adversely
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1 affected worker enter into an agreement with the Sec2 retary under which the Secretary will not be required

3 to pay under subsection (b) the portion of the costs

4 of the training that the worker has reason to believe

5 will be paid under the program, or by the source, de6 scribed in clause (i) or (ii) of subsection (f)(1)(C).

7 ‘‘(3) LIMITATION ON APPROVALS.—The Secretary

8 shall not approve a training program if all of the fol9 lowing apply:

10 ‘‘(A) PAYMENT BY PLAN.—Any portion of

11 the costs of the training program are paid under

12 any nongovernmental plan or program.

13 ‘‘(B) RIGHT TO OBTAIN.—The adversely af14 fected worker has a right to obtain training or

15 funds for training under that plan or program.

16 ‘‘(C) REIMBURSEMENT.—The plan or pro17 gram requires the worker to reimburse the plan

18 or program from funds provided under this

19 chapter, or from wages paid under the training

20 program, for any portion of the costs of that

21 training program paid under the plan or pro22 gram.

23 ‘‘(b) PAYMENT OF TRAINING COSTS.—

24 ‘‘(1) IN GENERAL.—Upon approval of a training

25 program under subsection (a), and subject to the limi-
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1 tations imposed by this section, an adversely affected

2 worker covered by a certification issued under section

3 231 may be eligible to have payment of the costs of

4 that training, including any costs of an approved

5 training program incurred by a worker before a cer6 tification was issued under section 231, made on be7 half of the worker by the Secretary directly or through

8 a voucher system.

9 ‘‘(2) ON-THE-JOB TRAINING AND CUSTOMIZED

10 TRAINING.—

11 ‘‘(A) PROVISION OF TRAINING ON THE JOB

12 OR CUSTOMIZED TRAINING.—If the Secretary ap13 proves training under subsection (a), the Sec14 retary shall, insofar as possible, provide or as15 sure the provision of that training on the job or

16 customized training, and any training on the job

17 or customized training that is approved by the

18 Secretary under subsection (a) shall include re19 lated education necessary for the acquisition of

20 skills needed for a position within a particular

21 occupation.

22 ‘‘(B) MONTHLY INSTALLMENTS.—If the Sec23 retary approves payment of any on-the-job train24 ing or customized training under subsection (a),
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1 the Secretary shall pay the costs of that training

2 in equal monthly installments.

3 ‘‘(C) LIMITATIONS.—The Secretary may

4 pay the costs of on-the-job training or customized

5 training only if—

6 ‘‘(i) no employed worker is displaced

7 by the adversely affected worker (including

8 partial displacement such as a reduction in

9 the hours of nonovertime work, wages, or

10 employment benefits);

11 ‘‘(ii) the training does not impair con12 tracts for services or collective bargaining

13 agreements;

14 ‘‘(iii) in the case of training that

15 would affect a collective bargaining agree16 ment, the written concurrence of the labor

17 organization concerned has been obtained;

18 ‘‘(iv) no other individual is on layoff

19 from the same, or any substantially equiva20 lent, job for which the adversely affected

21 worker is being trained;

22 ‘‘(v) the employer has not terminated

23 the employment of any regular employee or

24 otherwise reduced the workforce of the em25 ployer with the intention of filling the va-
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1 cancy so created by hiring the adversely af2 fected worker;

3 ‘‘(vi) the job for which the adversely af4 fected worker is being trained is not being

5 created in a promotional line that will in6 fringe in any way upon the promotional

7 opportunities of employed individuals;

8 ‘‘(vii) the training is not for the same

9 occupation from which the worker was sepa10 rated and with respect to which the worker’s

11 group was certified pursuant to section 231;

12 ‘‘(viii) the employer certifies to the

13 Secretary that the employer will continue to

14 employ the worker for at least 26 weeks

15 after completion of the training if the work16 er desires to continue the employment and

17 the employer does not have due cause to ter18 minate the employment;

19 ‘‘(ix) the employer has not received

20 payment under subsection (b)(1) with re21 spect to any other on-the-job training pro22 vided by the employer or customized train23 ing that failed to meet the requirements of

24 clauses (i) through (vi); and
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1 ‘‘(x) the employer has not taken, at

2 any time, any action that violated the terms

3 of any certification described in clause

4 (viii) made by that employer with respect to

5 any other on-the-job training provided by

6 the employer or customized training for

7 which the Secretary has made a payment

8 under paragraph (1).

9 ‘‘(c) CERTAIN WORKERS ELIGIBLE FOR TRAINING

10 BENEFITS.—An adversely affected worker covered by a cer11 tification issued under section 231, who is not qualified to

12 receive a trade adjustment allowance under section 235,

13 may be eligible to have payment of the costs of training

14 made under this section, if the worker enters a training pro15 gram approved by the Secretary not later than 6 months

16 after the date on which the certification that covers the

17 worker is issued or the Secretary determines that one of the

18 following applied:

19 ‘‘(1) Funding was not available at the time at

20 which the adversely affected worker was required to

21 enter training under paragraph (1).

22 ‘‘(2) The adversely affected worker was covered

23 by a waiver issued under section 235(c).

24 ‘‘(d) EXHAUSTION OF UNEMPLOYMENT INSURANCE

25 NOT REQUIRED.—The Secretary may approve training,
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1 and pay the costs thereof, for any adversely affected worker

2 who is a member of a group certified under section 231

3 at any time after the date on which the group is certified,

4 without regard to whether the worker has exhausted all

5 rights to any unemployment insurance to which the worker

6 is entitled.

7 ‘‘(e) SUPPLEMENTAL ASSISTANCE.—

8 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

9 and (3), when training is provided under a training

10 program approved by the Secretary under subsection

11 (a) in facilities that are not within commuting dis12 tance of a worker’s regular place of residence, the Sec13 retary may authorize supplemental assistance to de14 fray reasonable transportation and subsistence ex15 penses for separate maintenance.

16 ‘‘(2) TRANSPORTATION EXPENSES.—The Sec17 retary may not authorize payments for travel ex18 penses exceeding the prevailing mileage rate author19 ized under the Federal travel regulations.

20 ‘‘(3) SUBSISTENCE EXPENSES.—The Secretary

21 may not authorize payments for subsistence that ex22 ceed the lesser of—

23 ‘‘(A) the actual per diem expenses for sub24 sistence of the worker; or
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1 ‘‘(B) an amount equal to 50 percent of the

2 prevailing per diem allowance rate authorized

3 under Federal travel regulations.

4 ‘‘(f) SPECIAL PROVISIONS; LIMITATIONS.—

5 ‘‘(1) LIMITATION ON MAKING PAYMENTS.—

6 ‘‘(A) DISALLOWANCE OF OTHER PAY7 MENT.—If the costs of training an adversely af8 fected worker are paid by the Secretary under

9 subsection (b), no other payment for those train10 ing costs may be made under any other provi11 sion of Federal law.

12 ‘‘(B) NO PAYMENT OF REIMBURSABLE

13 COSTS.—No payment for the costs of approved

14 training may be made under subsection (b) if

15 those costs—

16 ‘‘(i) have already been paid under any

17 other provision of Federal law; or

18 ‘‘(ii) are reimbursable under any other

19 provision of Federal law and a portion of

20 those costs has already been paid under that

21 other provision of Federal law.

22 ‘‘(C) NO PAYMENT OF COSTS PAID ELSE23 WHERE.—The Secretary is not required to pay

24 the costs of any training approved under sub25 section (a) to the extent that those costs are paid
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1 under any Federal or State program other than

2 this chapter.

3 ‘‘(D) EXCEPTION.—The provisions of this

4 paragraph shall not apply to, or take into ac5 count, any funds provided under any other pro6 vision of Federal law that are used for any pur7 pose other than the direct payment of the costs

8 incurred in training a particular adversely af9 fected worker, even if the use of those funds has

10 the effect of indirectly paying for or reducing

11 any portion of the costs involved in training the

12 adversely affected worker.

13 ‘‘(2) UNEMPLOYMENT ELIGIBILITY.—A worker

14 may not be determined to be ineligible or disqualified

15 for unemployment insurance or program benefits

16 under this subchapter because the individual is in

17 training approved under subsection (a), because of

18 leaving work which is not suitable employment to

19 enter the training, or because of the application to

20 any week in training of provisions of State law or

21 Federal unemployment insurance law relating to

22 availability for work, active search for work, or re23 fusal to accept work.

24 ‘‘(3) DEFINITION.—For purposes of this section

25 the term ‘suitable employment’ means, with respect to
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1 a worker, work of a substantially equal or higher skill

2 level than the worker’s past adversely affected employ3 ment, and wages for such work at not less than 80

4 percent of the worker’s average weekly wage.

5 ‘‘(4) PAYMENTS AFTER REEMPLOYMENT.—

6 ‘‘(A) IN GENERAL.—In the case of an ad7 versely affected worker who secures reemploy8 ment, the Secretary may approve and pay the

9 costs of training (or shall continue to pay the

10 costs of training previously approved) for that

11 adversely affected worker, for the completion of

12 the training program or up to 26 weeks, which13 ever is less, after the date the adversely affected

14 worker becomes reemployed.

15 ‘‘(B) TRADE ADJUSTMENT ALLOWANCE.—

16 An adversely affected worker who is reemployed

17 and is undergoing training approved by the Sec18 retary pursuant to subparagraph (A) may con19 tinue to receive a trade adjustment allowance,

20 subject to the income offsets provided for in the

21 worker’s State unemployment compensation law

22 in accordance with the provisions of section 237.

23 ‘‘(5) FUNDING.—The total amount of payments

24 that may be made under this section for any fiscal

25 year shall not exceed $300,000,000.
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1 ‘‘SEC. 241. JOB SEARCH ALLOWANCES.

2 ‘‘(a) JOB SEARCH ALLOWANCE AUTHORIZED.—

3 ‘‘(1) IN GENERAL.—An adversely affected worker

4 covered by a certification issued under section 231

5 may file an application with the Secretary for pay6 ment of a job search allowance.

7 ‘‘(2) APPROVAL OF APPLICATIONS.—The Sec8 retary may grant an allowance pursuant to an appli9 cation filed under paragraph (1) when all of the fol10 lowing apply:

11 ‘‘(A) ASSIST ADVERSELY AFFECTED WORK12 ER.—The allowance is paid to assist an ad13 versely affected worker who has been totally sepa14 rated in securing a job within the United States.

15 ‘‘(B) LOCAL EMPLOYMENT NOT AVAIL16 ABLE.—The Secretary determines that the work17 er cannot reasonably be expected to secure suit18 able employment in the commuting area in

19 which the worker resides.

20 ‘‘(C) APPLICATION.—The worker has filed

21 an application for the allowance with the Sec22 retary before—

23 ‘‘(i) the later of—

24 ‘‘(I) the 365th day after the date

25 of the certification under which the

26 worker is certified as eligible; or
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1 ‘‘(II) the 365th day after the date

2 of the worker’s last total separation; or

3 ‘‘(ii) the date that is the 182d day

4 after the date on which the worker con5 cluded training, unless the worker received

6 a waiver under section 235(c).

7 ‘‘(b) AMOUNT OF ALLOWANCE.—

8 ‘‘(1) IN GENERAL.—An allowance granted under

9 subsection (a) shall provide reimbursement to the

10 worker of 90 percent of the cost of necessary job search

11 expenses as prescribed by the Secretary in regulations.

12 ‘‘(2) MAXIMUM ALLOWANCE.—Reimbursement

13 under this subsection may not exceed $1,200 for any

14 worker.

15 ‘‘(3) ALLOWANCE FOR SUBSISTENCE AND TRANS16 PORTATION.—Reimbursement under this subsection

17 may not be made for subsistence and transportation

18 expenses at levels exceeding those allowable under sec19 tion 240(e).

20 ‘‘(c) EXCEPTION.—Notwithstanding subsection (b), the

21 Secretary shall reimburse any adversely affected worker for

22 necessary expenses incurred by the worker in participating

23 in a job search program approved by the Secretary.

24 ‘‘SEC. 242. RELOCATION ALLOWANCES.

25 ‘‘(a) RELOCATION ALLOWANCE AUTHORIZED.—
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1 ‘‘(1) IN GENERAL.—Any adversely affected work2 er covered by a certification issued under section 231

3 may file an application for a relocation allowance

4 with the Secretary, and the Secretary may grant the

5 relocation allowance, subject to the terms and condi6 tions of this section.

7 ‘‘(2) CONDITIONS FOR GRANTING ALLOWANCE.—

8 A relocation allowance may be granted if all of the

9 following terms and conditions are met:

10 ‘‘(A) ASSIST AN ADVERSELY AFFECTED

11 WORKER.—The relocation allowance will assist

12 an adversely affected worker in relocating within

13 the United States.

14 ‘‘(B) LOCAL EMPLOYMENT NOT AVAIL15 ABLE.—The Secretary determines that the work16 er cannot reasonably be expected to secure suit17 able employment in the commuting area in

18 which the worker resides.

19 ‘‘(C) TOTAL SEPARATION.—The worker is

20 totally separated from employment at the time

21 relocation commences.

22 ‘‘(D) SUITABLE EMPLOYMENT OBTAINED.—

23 The worker—

24 ‘‘(i) has obtained suitable employment

25 affording a reasonable expectation of long-
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1 term duration in the area in which the

2 worker wishes to relocate; or

3 ‘‘(ii) has obtained a bona fide offer of

4 such employment.

5 ‘‘(E) APPLICATION.—The worker filed an

6 application with the Secretary before—

7 ‘‘(i) the later of—

8 ‘‘(I) the 425th day after the date

9 of the certification under section 231;

10 or

11 ‘‘(II) the 425th day after the date

12 of the worker’s last total separation; or

13 ‘‘(ii) the date that is the 182d day

14 after the date on which the worker con15 cluded training, unless the worker received

16 a waiver under section 235(c).

17 ‘‘(b) AMOUNT OF ALLOWANCE.—The relocation allow18 ance granted to a worker under subsection (a) includes—

19 ‘‘(1) 90 percent of the reasonable and necessary

20 expenses (including, but not limited to, subsistence

21 and transportation expenses at levels not exceeding

22 those allowable under section 240(e)) specified in reg23 ulations prescribed by the Secretary, incurred in

24 transporting the worker, the worker’s family, and

25 household effects; and
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1 ‘‘(2) a lump sum equivalent to 3 times the work2 er’s average weekly wage, up to a maximum payment

3 of $1,500.

4 ‘‘(c) LIMITATIONS.—A relocation allowance may not

5 be granted to a worker unless—

6 ‘‘(1) the relocation occurs within 182 days after

7 the filing of the application for relocation assistance;

8 or

9 ‘‘(2) the relocation occurs within 182 days after

10 the conclusion of training, if the worker entered a

11 training program approved by the Secretary under

12 section 240(a).

13 ‘‘SEC. 243. SUPPORTIVE SERVICES; WAGE INSURANCE.

14 ‘‘(a) SUPPORTIVE SERVICES.—

15 ‘‘(1) APPLICATION.—

16 ‘‘(A) IN GENERAL.—The State may, on be17 half of any adversely affected worker or group of

18 workers covered by a certification issued under

19 section 231—

20 ‘‘(i) file an application with the Sec21 retary for services under section 173 of the

22 Workforce Investment Act of 1998 (relating

23 to National Emergency Grants); and

24 ‘‘(ii) provide other services under title

25 I of the Workforce Investment Act of 1998.
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1 ‘‘(B) SERVICES.—The services available

2 under this paragraph include transportation,

3 child care, and dependent care that are necessary

4 to enable a worker to participate in activities

5 authorized under this chapter.

6 ‘‘(2) CONDITIONS.—The Secretary may approve

7 an application filed under paragraph (1)(A)(i) and

8 provide supportive services to an adversely affected

9 worker only if the Secretary determines that all of the

10 following apply:

11 ‘‘(A) NECESSITY.—Providing services is

12 necessary to enable the worker to participate in

13 or complete training.

14 ‘‘(B) CONSISTENT WITH WORKFORCE IN15 VESTMENT ACT.—The services are consistent with

16 the supportive services provided to participants

17 under the provisions relating to dislocated work18 er employment and training activities set forth

19 in chapter 5 of subtitle B of title I of the Work20 force Investment Act of 1998 (29 U.S.C. 2861 et

21 seq.).

22 ‘‘(b) WAGE INSURANCE PROGRAM.—

23 ‘‘(1) IN GENERAL.—Not later than 1 year after

24 the date of enactment of the Trade Adjustment Assist25 ance for Workers, Farmers, Fishermen, Communities,
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1 and Firms Act of 2002, the Secretary shall establish

2 a Wage Insurance Program under which a State shall

3 use the funds provided to the State for trade adjust4 ment allowances to pay to an adversely affected work5 er certified under section 231 a wage subsidy of up

6 to 50 percent of the difference between the wages re7 ceived by the adversely affected worker from reemploy8 ment and the wages received by the adversely affected

9 worker at the time of separation for a period not to

10 exceed 2 years.

11 ‘‘(2) AMOUNT OF PAYMENT.—

12 ‘‘(A) WAGES UNDER $40,000.—If the wages

13 the worker receives from reemployment are less

14 than $40,000 a year, the wage subsidy shall be

15 50 percent of the difference between the amount

16 of the wages received by the worker from reem17 ployment and the amount of the wages received

18 by the worker at the time of separation.

19 ‘‘(B) WAGES BETWEEN $40,000 AND

20 $50,000.—If the wages received by the worker

21 from reemployment are greater than $40,000 a

22 year but less than $50,000 a year, the wage sub23 sidy shall be 25 percent of the difference between

24 the amount of the wages received by the worker
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1 from reemployment and the amount of the wages

2 received by the worker at the time of separation.

3 ‘‘(3) ELIGIBILITY.—An adversely affected worker

4 may be eligible to receive a wage subsidy under this

5 subsection if the worker—

6 ‘‘(A) enrolls in the Wage Insurance Pro7 gram;

8 ‘‘(B) obtains reemployment not more than

9 26 weeks after the date of separation from the

10 adversely affected employment;

11 ‘‘(C) is at least 50 years of age;

12 ‘‘(D) earns not more than $50,000 a year in

13 wages from reemployment;

14 ‘‘(E) is employed at least 30 hours a week

15 in the reemployment; and

16 ‘‘(F) does not return to the employment

17 from which the worker was separated.

18 ‘‘(4) AMOUNT OF PAYMENTS.—The payments

19 made under paragraph (1) to an adversely affected

20 worker may not exceed $10,000 over the 2-year pe21 riod.

22 ‘‘(5) LIMITATION ON OTHER BENEFITS.—At the

23 time a worker begins to receive a wage subsidy under

24 this subsection the worker shall not be eligible to re25 ceive any benefits under this Act other than the wage
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1 subsidy unless the Secretary determines, pursuant to

2 standards established by the Secretary, that the work3 er has shown circumstances that warrant eligibility

4 for training benefits under section 240.

5 ‘‘(c) STUDIES OF ASSISTANCE AVAILABLE TO ECO6 NOMICALLY DISTRESSED WORKERS.—

7 ‘‘(1) STUDY BY THE GENERAL ACCOUNTING OF8 FICE.—

9 ‘‘(A) IN GENERAL.—The Comptroller Gen10 eral of the United States shall conduct a study

11 of all assistance provided by the Federal Govern12 ment for workers facing job loss and economic

13 distress.

14 ‘‘(B) REPORT.—Not later than 1 year after

15 the date of enactment of the Trade Adjustment

16 Assistance for Workers, Farmers, Fishermen,

17 Communities, and Firms Act of 2002, the Comp18 troller General shall submit to the Committee on

19 Finance of the Senate and the Committee on

20 Ways and Means of the House of Representatives

21 a report on the study conducted under subpara22 graph (A). The report shall include a description

23 of—
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1 ‘‘(i) all Federal programs designed to

2 assist workers facing job loss and economic

3 distress, including all benefits and services;

4 ‘‘(ii) eligibility requirements for each

5 of the programs; and

6 ‘‘(iii) procedures for applying for and

7 receiving benefits and services under each of

8 the programs.

9 ‘‘(C) DISTRIBUTION OF GAO REPORT.—The

10 report described in subparagraph (B) shall be

11 distributed to all one-stop partners authorized

12 under the Workforce Investment Act of 1998.

13 ‘‘(2) STUDIES BY THE STATES.—

14 ‘‘(A) IN GENERAL.—Each State may con15 duct a study of its assistance programs for work16 ers facing job loss and economic distress.

17 ‘‘(B) GRANTS.—The Secretary may award

18 to each State a grant, not to exceed $50,000, to

19 enable the State to conduct the study described

20 in subparagraph (A). Each study shall be under21 taken in consultation with affected parties.

22 ‘‘(C) REPORT.—Not later than 1 year after

23 the date of the grant, each State that receives a

24 grant under subparagraph (B) shall submit to

25 the Committee on Finance of the Senate and the
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1 Committee on Ways and Means of the House of

2 Representatives the report described in subpara3 graph (A).

4 ‘‘(D) DISTRIBUTION OF STATE REPORTS.—

5 A report prepared by a State under this para6 graph shall be distributed to all the one-stop

7 partners in the State.

8 ‘‘Subchapter D—Payment and Enforcement

9 Provisions

10 ‘‘SEC. 244. PAYMENTS TO STATES.

11 ‘‘(a) IN GENERAL.—The Secretary, from time to time,

12 shall certify to the Secretary of the Treasury for payment

13 to each cooperating State, the sums necessary to enable that

14 State as agent of the United States to make payments pro15 vided for by this chapter.

16 ‘‘(b) LIMITATION ON USE OF FUNDS.—

17 ‘‘(1) IN GENERAL.—All money paid to a cooper18 ating State under this section shall be used solely for

19 the purposes for which it is paid.

20 ‘‘(2) RETURN OF FUNDS NOT SO USED.—Money

21 paid that is not used for the purpose for which it is

22 paid under subsection (a) shall be returned to the Sec23 retary of the Treasury at the time specified in the

24 agreement entered into under section 222.
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1 ‘‘(c) SURETY BOND.—Any agreement under section

2 222 may require any officer or employee of the cooperating

3 State certifying payments or disbursing funds under the

4 agreement or otherwise participating in the performance of

5 the agreement, to give a surety bond to the United States

6 in an amount the Secretary deems necessary, and may pro7 vide for the payment of the cost of that bond from funds

8 for carrying out the purposes of this chapter.

9 ‘‘SEC. 245. LIABILITIES OF CERTIFYING AND DISBURSING

10 OFFICERS.

11 ‘‘(a) LIABILITY OF CERTIFYING OFFICIALS.—No per12 son designated by the Secretary, or designated pursuant to

13 an agreement entered into under section 222, as a certifying

14 officer, in the absence of gross negligence or intent to de15 fraud the United States, shall be liable with respect to any

16 payment certified by that person under this chapter.

17 ‘‘(b) LIABILITY OF DISBURSING OFFICERS.—No dis18 bursing officer, in the absence of gross negligence or intent

19 to defraud the United States, shall be liable with respect

20 to any payment by that officer under this chapter if the

21 payment was based on a voucher signed by a certifying offi22 cer designated according to subsection (a).

23 ‘‘SEC. 246. FRAUD AND RECOVERY OF OVERPAYMENTS.

24 ‘‘(a) IN GENERAL.—
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1 ‘‘(1) OVERPAYMENT.—If a cooperating State, the

2 Secretary, or a court of competent jurisdiction deter3 mines that any person has received any payment

4 under this chapter to which the person was not enti5 tled, including a payment referred to in subsection

6 (b), that person shall be liable to repay that amount

7 to the cooperating State or the Secretary, as the case

8 may be.

9 ‘‘(2) EXCEPTION.—The cooperating State or the

10 Secretary may waive repayment if the cooperating

11 State or the Secretary determines, in accordance with

12 guidelines prescribed by the Secretary, that all of the

13 following apply:

14 ‘‘(A) NO FAULT.—The payment was made

15 without fault on the part of the person.

16 ‘‘(B) REPAYMENT CONTRARY TO EQUITY.—

17 Requiring repayment would be contrary to eq18 uity and good conscience.

19 ‘‘(3) PROCEDURE FOR RECOVERY.—

20 ‘‘(A) RECOVERY FROM OTHER ALLOWANCES

21 AUTHORIZED.—Unless an overpayment is other22 wise recovered or waived under paragraph (2),

23 the cooperating State or the Secretary shall re24 cover the overpayment by deductions from any

25 sums payable to that person under this chapter,
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1 under any Federal unemployment compensation

2 law administered by the cooperating State or the

3 Secretary, or under any other Federal law ad4 ministered by the cooperating State or the Sec5 retary that provides for the payment of assist6 ance or an allowance with respect to unemploy7 ment.

8 ‘‘(B) RECOVERY FROM STATE ALLOWANCES

9 AUTHORIZED.—Notwithstanding any other pro10 vision of Federal or State law, the Secretary

11 may require a cooperating State to recover any

12 overpayment under this chapter by deduction

13 from any unemployment insurance payable to

14 that person under State law, except that no sin15 gle deduction under this paragraph shall exceed

16 50 percent of the amount otherwise payable.

17 ‘‘(b) INELIGIBILITY FOR FURTHER PAYMENTS.—Any

18 person, in addition to any other penalty provided by law,

19 shall be ineligible for any further payments under this

20 chapter if a cooperating State, the Secretary, or a court

21 of competent jurisdiction determines that one of the fol22 lowing applies:

23 ‘‘(1) FALSE STATEMENT.—The person knowingly

24 made, or caused another to make, a false statement or

25 representation of a material fact, and as a result of
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1 the false statement or representation, the person re2 ceived any payment under this chapter to which the

3 person was not entitled.

4 ‘‘(2) FAILURE TO DISCLOSE.—The person know5 ingly failed, or caused another to fail, to disclose a

6 material fact, and as a result of the nondisclosure, the

7 person received any payment under this chapter to

8 which the person was not entitled.

9 ‘‘(c) HEARING.—Except for overpayments determined

10 by a court of competent jurisdiction, no repayment may

11 be required, and no deduction may be made, under this sec12 tion until a determination under subsection (a) by the co13 operating State or the Secretary, as the case may be, has

14 been made, notice of the determination and an opportunity

15 for a fair hearing has been given to the person concerned,

16 and the determination has become final.

17 ‘‘(d) RECOVERED FUNDS.—Any amount recovered

18 under this section shall be returned to the Treasury of the

19 United States.

20 ‘‘SEC. 247. CRIMINAL PENALTIES.

21 ‘‘Whoever makes a false statement of a material fact

22 knowing it to be false, or knowingly fails to disclose a mate23 rial fact, for the purpose of obtaining or increasing for that

24 person or for any other person any payment authorized to

25 be furnished under this chapter or pursuant to an agree-
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1 ment under section 222 shall be fined not more than

2 $10,000, imprisoned for not more than 1 year, or both.

3 ‘‘SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘There are authorized to be appropriated to the De5 partment of Labor, for the period beginning October 1,

6 2001, and ending September 30, 2006, such sums as may

7 be necessary to carry out the purposes of this chapter.

8 Amounts appropriated under this section shall remain

9 available until expended.

10 ‘‘SEC. 249. REGULATIONS.

11 ‘‘The Secretary shall prescribe such regulations as may

12 be necessary to carry out the provisions of this chapter.

13 ‘‘SEC. 250. SUBPOENA POWER.

14 ‘‘(a) IN GENERAL.—The Secretary may require by

15 subpoena the attendance of witnesses and the production of

16 evidence necessary to make a determination under the pro17 visions of this chapter.

18 ‘‘(b) COURT ORDER.—If a person refuses to obey a sub19 poena issued under subsection (a), a competent United

20 States district court, upon petition by the Secretary, may

21 issue an order requiring compliance with such subpoena.’’.

22 SEC. 102. DISPLACED WORKER SELF-EMPLOYMENT TRAIN23 ING PILOT PROGRAM.

24 (a) ESTABLISHMENT.—Not later than 6 months after

25 the date of enactment of this Act, the Administrator of the
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1 Small Business Administration (in this section referred to

2 as the ‘‘Administrator’’) shall establish a self-employment

3 training program (in this section referred to as the ‘‘Pro4 gram’’) for adversely affected workers (as defined in chapter

5 2 of title II of the Trade Act of 1974), to be administered

6 by the Small Business Administration.

7 (b) ELIGIBILITY FOR ASSISTANCE.—If an adversely af8 fected worker seeks or receives assistance through the Pro9 gram, such action shall not affect the eligibility of that

10 worker to receive benefits under chapter 2 of title II of the

11 Trade Act of 1974.

12 (c) TRAINING ASSISTANCE.—The Program shall in13 clude, at a minimum, training in—

14 (1) pre-business startup planning;

15 (2) awareness of basic credit practices and credit

16 requirements; and

17 (3) developing business plans, financial pack18 ages, and credit applications.

19 (d) OUTREACH.—The Program should include out20 reach to adversely affected workers and counseling and lend21 ing partners of the Small Business Administration.

22 (e) REPORTS TO CONGRESS.—Beginning not later

23 than 180 days after the date of enactment of this Act, the

24 Administrator shall submit quarterly reports to the Com25 mittee on Small Business and Entrepreneurship of the Sen-
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1 ate and the Committee on Small Business of the House of

2 Representatives regarding the implementation of the Pro3 gram, including Program delivery, staffing, and adminis4 trative expenses related to such implementation.

5 (f) GUIDELINES.—Not later than 180 days after the

6 date of enactment of this Act, the Administrator, shall issue

7 such guidelines as the Administrator determines to be nec8 essary to carry out the Program.

9 (g) EFFECTIVE DATE.—The Program shall terminate

10 3 years after the date of final publication of guidelines

11 under subsection (f).

12 TITLE II—TRADE ADJUSTMENT

13 ASSISTANCE FOR FIRMS

14 SEC. 201. REAUTHORIZATION OF PROGRAM.

15 (a) IN GENERAL.—Section 256(b) of chapter 3 of title

16 II of the Trade Act of 1974 (19 U.S.C. 2346(b)) is amended

17 to read as follows:

18 ‘‘(b) There are authorized to be appropriated to the

19 Secretary $16,000,000 for each of fiscal years 2002 through

20 2006, to carry out the Secretary’s functions under this

21 chapter in connection with furnishing adjustment assist22 ance to firms. Amounts appropriated under this subsection

23 shall remain available until expended.’’.
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1 (b) ELIGIBILITY CRITERIA.—Section 251(c) of chapter

2 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341(c)(1))

3 is amended—

4 (1) in paragraph (1), by striking subparagraphs

5 (B) and (C) and inserting the following:

6 ‘‘(B) increases in value or volume of imports of

7 articles like or directly competitive with articles

8 which are produced by such firm contributed impor9 tantly to such total or partial separation, or threat

10 thereof, or

11 ‘‘(C) a shift in production by the workers’ firm

12 or subdivision to a foreign country of articles like or

13 directly competitive with articles which are produced

14 by that firm or subdivision contributed importantly

15 to the workers’ separation or threat of separation.’’;

16 and

17 (2) in paragraph (2), by striking ‘‘paragraph

18 (1)(C)’’ and inserting ‘‘subparagraphs (B) and (C) of

19 paragraph (1)’’.

20 TITLE III—TRADE ADJUSTMENT

21 ASSISTANCE FOR COMMUNITIES

22 SEC. 301. PURPOSE.

23 The purpose of this title is to assist communities with

24 economic adjustment through the integration of political

25 and economic organizations, the coordination of Federal,
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1 State, and local resources, the creation of community-based

2 development strategies, and the provision of economic tran3 sition assistance.

4 SEC. 302. TRADE ADJUSTMENT ASSISTANCE FOR COMMU5 NITIES.

6 Chapter 4 of title II of the Trade Act of 1974 (19

7 U.S.C. 2371 et seq.) is amended to read as follows:

8 ‘‘CHAPTER 4—COMMUNITY ECONOMIC

9 ADJUSTMENT

10 ‘‘SEC. 271. DEFINITIONS.

11 ‘‘In this chapter:

12 ‘‘(1) CIVILIAN LABOR FORCE.—The term ‘civilian

13 labor force’ has the meaning given that term in regu14 lations prescribed by the Secretary of Labor.

15 ‘‘(2) COMMUNITY.—The term ‘community’ means

16 a county or equivalent political subdivision of a

17 State.

18 ‘‘(A) RURAL COMMUNITY.—The term ‘rural

19 community’ means a community that has a

20 rural-urban continuum code of 4 through 9.

21 ‘‘(B) URBAN COMMUNITY.—The term ‘urban

22 community’ means a community that has a

23 rural-urban continuum code of 0 through 3.

24 ‘‘(3) COMMUNITY ECONOMIC DEVELOPMENT CO25 ORDINATING COMMITTEE.—The term ‘Community
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1 Economic Development Coordinating Committee’

2 means a community group established under section

3 274 that consists of major groups significantly af4 fected by an increase in imports or a shift in produc5 tion, including local, regional, tribal, and State gov6 ernments, regional councils of governments and eco7 nomic development, and business, labor, education,

8 health, religious, and other community-based organi9 zations.

10 ‘‘(4) DIRECTOR.—The term ‘Director’ means the

11 Director of the Office of Community Trade Adjust12 ment.

13 ‘‘(5) ELIGIBLE COMMUNITY.—The term ‘eligible

14 community’ means a community certified under sec15 tion 273 as eligible for assistance under this chapter.

16 ‘‘(6) JOB LOSS.—The term ‘job loss’ means the

17 total or partial separation of an individual, as those

18 terms are defined in section 221.

19 ‘‘(7) OFFICE.—The term ‘Office’ means the Office

20 of Community Trade Adjustment established under

21 section 272.

22 ‘‘(8) RURAL-URBAN CONTINUUM CODE.—The

23 term ‘rural-urban continuum code’ means a code as24 signed to a community according to the rural-urban
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1 continuum code system, as defined by the Economic

2 Research Service of the Department of Agriculture.

3 ‘‘(9) SECRETARY.—The term ‘Secretary’ means

4 the Secretary of Commerce.

5 ‘‘SEC. 272. OFFICE OF COMMUNITY TRADE ADJUSTMENT.

6 ‘‘(a) ESTABLISHMENT.—Within 6 months of the date

7 of enactment of the Trade Adjustment Assistance for Work8 ers, Farmers, Fishermen, Communities, and Firms Act of

9 2002, there shall be established in the Economic Develop10 ment Administration of the Department of Commerce an

11 Office of Community Trade Adjustment.

12 ‘‘(b) PERSONNEL.—The Office shall be headed by a Di13 rector, and shall have such staff as may be necessary to

14 carry out the responsibilities described in this chapter.

15 ‘‘(c) COORDINATION OF FEDERAL RESPONSE.—The

16 Office shall—

17 ‘‘(1) provide leadership, support, and coordina18 tion for a comprehensive management program to ad19 dress economic dislocation in eligible communities;

20 ‘‘(2) establish an easily accessible, one-stop clear21 inghouse for States and eligible communities to obtain

22 information regarding economic development assist23 ance available under Federal law;

24 ‘‘(3) coordinate the Federal response to an eligi25 ble community—
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1 ‘‘(A) by identifying all Federal, State, and

2 local resources that are available to assist the eli3 gible community in recovering from economic

4 distress;

5 ‘‘(B) by ensuring that all Federal agencies

6 offering assistance to an eligible community do

7 so in a targeted, integrated manner that ensures

8 that an eligible community has access to all

9 available Federal assistance;

10 ‘‘(C) by assuring timely consultation and

11 cooperation between Federal, State, and regional

12 officials concerning community economic adjust13 ment;

14 ‘‘(D) by identifying and strengthening exist15 ing agency mechanisms designed to assist com16 munities in economic adjustment and workforce

17 reemployment;

18 ‘‘(E) by applying consistent policies, prac19 tices, and procedures in the administration of

20 Federal programs that are used to assist commu21 nities adversely impacted by an increase in im22 ports or a shift in production;

23 ‘‘(F) by creating, maintaining, and using a

24 uniform economic database to analyze commu25 nity adjustment activities; and
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1 ‘‘(G) by assigning a community economic

2 adjustment advisor to work with each eligible

3 community;

4 ‘‘(4) provide comprehensive technical assistance

5 to any eligible community in the efforts of that com6 munity to—

7 ‘‘(A) identify serious economic problems in

8 the community that result from an increase in

9 imports or shift in production;

10 ‘‘(B) integrate the major groups and orga11 nizations significantly affected by the economic

12 adjustment;

13 ‘‘(C) organize a Community Economic De14 velopment Coordinating Committee;

15 ‘‘(D) access Federal, State, and local re16 sources designed to assist in economic develop17 ment and trade adjustment assistance;

18 ‘‘(E) diversify and strengthen the commu19 nity economy; and

20 ‘‘(F) develop a community-based strategic

21 plan to address workforce dislocation and eco22 nomic development;

23 ‘‘(5) establish specific criteria for submission and

24 evaluation of a strategic plan submitted under section

25 276(d);
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1 ‘‘(6) administer the grant programs established

2 under sections 276 and 277; and

3 ‘‘(7) establish an interagency Trade Adjustment

4 Assistance Working Group, consisting of the rep5 resentatives of any Federal department or agency

6 with responsibility for economic adjustment assist7 ance, including the Department of Agriculture, the

8 Department of Defense, the Department of Education,

9 the Department of Labor, the Department of Housing

10 and Urban Development, the Department of Health

11 and Human Services, the Small Business Adminis12 tration, the Department of the Treasury, the Depart13 ment of Commerce, the Office of the United States

14 Trade Representative, and the National Economic

15 Council.

16 ‘‘(d) WORKING GROUP.—The working group estab17 lished under subsection (c)(7) shall examine other options

18 for addressing trade impacts on communities, such as:

19 ‘‘(1) Seeking legislative language directing the

20 Foreign Trade Zone (‘FTZ’) Board to expedite con21 sideration of FTZ applications from communities or

22 businesses that have been found eligible for trade ad23 justment assistance.
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1 ‘‘(2) Seeking legislative language to make new

2 markets tax credits available in communities im3 pacted by trade.

4 ‘‘(3) Seeking legislative language to make work

5 opportunity tax credits available for hiring unem6 ployed workers who are certified eligible for trade ad7 justment assistance.

8 ‘‘(4) Examining ways to assist trade impacted

9 rural communities and industries take advantage of

10 the Department of Agriculture’s rural development

11 program.

12 ‘‘SEC. 273. NOTIFICATION AND CERTIFICATION AS AN ELIGI13 BLE COMMUNITY.

14 ‘‘(a) NOTIFICATION.—The Secretary of Labor, not later

15 than 15 days after making a determination that a group

16 of workers is eligible for trade adjustment assistance under

17 section 231, shall notify the Governor of the State in which

18 the community in which the worker’s firm is located and

19 the Director, of the Secretary’s determination.

20 ‘‘(b) CERTIFICATION.—Not later than 30 days after no21 tification by the Secretary of Labor described in subsection

22 (a), the Director shall certify as eligible for assistance under

23 this chapter a community in which 1 of the following condi24 tions applies:
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1 ‘‘(1) NUMBER OF JOB LOSSES.—The Director

2 shall certify that a community is eligible for assist3 ance under this chapter if—

4 ‘‘(A) in an urban community, at least 500

5 workers have been certified for assistance under

6 section 231 in the most recent 36-month period

7 preceding the date of certification under this sec8 tion for which data are available; or

9 ‘‘(B) in a rural community, at least 300

10 workers have been certified for assistance under

11 section 231 in the most recent 36-month period

12 preceding the date of certification under this sec13 tion for which data are available.

14 ‘‘(2) PERCENT OF WORKFORCE UNEMPLOYED.—

15 The Director shall certify that a community is eligible

16 for assistance under this chapter if the unemployment

17 rate for the community is at least 1 percent greater

18 than the national unemployment rate for the most re19 cent 12-month period for which data are available.

20 ‘‘(c) NOTIFICATION TO ELIGIBLE COMMUNITIES.—Not

21 later than 15 days after the Director certifies a community

22 as eligible under subsection (b), the Director shall notify

23 the community—

24 ‘‘(1) of its determination under subsection (b);

25 ‘‘(2) of the provisions of this chapter;
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1 ‘‘(3) how to access the clearinghouse established

2 under section 272(c)(2); and

3 ‘‘(4) how to obtain technical assistance provided

4 under section 272(c)(4).

5 ‘‘SEC. 274. COMMUNITY ECONOMIC DEVELOPMENT COORDI6 NATING COMMITTEE.

7 ‘‘(a) ESTABLISHMENT.—In order to apply for and re8 ceive benefits under this chapter, an eligible community

9 shall establish a Community Economic Development Co10 ordinating Committee certified by the Director as meeting

11 the requirements of subsection (b)(1).

12 ‘‘(b) COMPOSITION OF THE COMMITTEE.—

13 ‘‘(1) LOCAL PARTICIPATION.—The Community

14 Economic Development Coordinating Committee es15 tablished by an eligible community under subsection

16 (a) shall include representatives of those groups sig17 nificantly affected by economic dislocation, such as

18 local, regional, tribal, and State governments, re19 gional councils of governments and economic develop20 ment, business, labor, education, health organizations,

21 religious, and other community-based groups pro22 viding assistance to workers, their families, and com23 munities.

24 ‘‘(2) FEDERAL PARTICIPATION.—Pursuant to

25 section 275(b)(3), the community economic adjust-
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1 ment advisor, assigned by the Director to assist an el2 igible community, shall serve as an ex officio member

3 of the Community Economic Development Coordi4 nating Committee, and shall arrange for participa5 tion by representatives of other Federal agencies on

6 that Committee as necessary.

7 ‘‘(3) EXISTING ORGANIZATION.—An eligible com8 munity may designate an existing organization in

9 that community as the Community Economic Devel10 opment Coordinating Committee if that organization

11 meets the requirements of paragraph (1) for the pur12 poses of this chapter.

13 ‘‘(c) DUTIES.—The Community Economic Develop14 ment Coordinating Committee shall—

15 ‘‘(1) ascertain the severity of the community eco16 nomic adjustment required as a result of the increase

17 in imports or shift in production;

18 ‘‘(2) assess the capacity of the community to re19 spond to the required economic adjustment and the

20 needs of the community as it undertakes economic ad21 justment, taking into consideration such factors as the

22 number of jobs lost, the size of the community, the di23 versity of industries, the skills of the labor force, the

24 condition of the current labor market, the availability

25 of financial resources, the quality and availability of
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1 educational facilities, the adequacy and availability

2 of public services, and the existence of a basic and ad3 vanced infrastructure in the community;

4 ‘‘(3) facilitate a dialogue between concerned in5 terests in the community, represent the impacted com6 munity, and ensure all interests in the community

7 work collaboratively toward collective goals without

8 duplication of effort or resources;

9 ‘‘(4) oversee the development of a strategic plan

10 for community economic development, taking into

11 consideration the factors mentioned under paragraph

12 (2), and consistent with the criteria established by the

13 Secretary for the strategic plan developed under sec14 tion 276;

15 ‘‘(5) create an executive council of members of

16 the Community Economic Development Coordinating

17 Committee to promote the strategic plan within the

18 community and ensure coordination and cooperation

19 among all stakeholders; and

20 ‘‘(6) apply for any grant, loan, or loan guar21 antee available under Federal law to develop or im22 plement the strategic plan, and be an eligible recipi23 ent for funding for economic adjustment for that com24 munity.
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1 ‘‘SEC. 275. COMMUNITY ECONOMIC ADJUSTMENT ADVI2 SORS.

3 ‘‘(a) IN GENERAL.—Pursuant to section 272(c)(3)(G),

4 the Director shall assign a community economic adjustment

5 advisor to each eligible community.

6 ‘‘(b) DUTIES.—The community economic adjustment

7 advisor shall—

8 ‘‘(1) provide technical assistance to the eligible

9 community, assist in the development and implemen10 tation of a strategic plan, including applying for any

11 grant available under this or any other Federal law

12 to develop or implement that plan;

13 ‘‘(2) at the local and regional level, coordinate

14 the response of all Federal agencies offering assistance

15 to the eligible community;

16 ‘‘(3) serve as an ex officio member of the Com17 munity Economic Development Coordinating Com18 mittee established by an eligible community under

19 section 274;

20 ‘‘(4) act as liaison between the Community Eco21 nomic Development Coordinating Committee estab22 lished by the eligible community and all other Federal

23 agencies that offer assistance to eligible communities,

24 including the Department of Agriculture, the Depart25 ment of Defense, the Department of Education, the

26 Department of Labor, the Department of Housing
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1 and Urban Development, the Department of Health

2 and Human Services, the Small Business Adminis3 tration, the Department of the Treasury, the National

4 Economic Council, and other offices or agencies of the

5 Department of Commerce;

6 ‘‘(5) report regularly to the Director regarding

7 the progress of development activities in the commu8 nity to which the community economic adjustment

9 advisor is assigned; and

10 ‘‘(6) perform other duties as directed by the Sec11 retary or the Director.

12 ‘‘SEC. 276. STRATEGIC PLANS.

13 ‘‘(a) IN GENERAL.—With the assistance of the commu14 nity economic adjustment advisor, an eligible community

15 may develop a strategic plan for community economic ad16 justment and diversification.

17 ‘‘(b) REQUIREMENTS FOR STRATEGIC PLAN.—A stra18 tegic plan shall contain, at a minimum, the following:

19 ‘‘(1) A description and justification of the capac20 ity for economic adjustment, including the method of

21 financing to be used, the anticipated management

22 structure of the Community Economic Development

23 Coordinating Committee, and the commitment of the

24 community to the strategic plan over the long term.
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1 ‘‘(2) A description of, and a plan to accomplish,

2 the projects to be undertaken by the eligible commu3 nity.

4 ‘‘(3) A description of how the plan and the

5 projects to be undertaken by the eligible community

6 will lead to job creation and job retention in the com7 munity.

8 ‘‘(4) A description of any alternative develop9 ment plans that were considered, particularly less

10 costly alternatives, and why those plans were rejected

11 in favor of the proposed plan.

12 ‘‘(5) A description of any additional steps the el13 igible community will take to achieve economic ad14 justment and diversification, including how the plan

15 and the projects will contribute to establishing or

16 maintaining a level of public services necessary to at17 tract and retain economic investment.

18 ‘‘(6) A description and justification for the cost

19 and timing of proposed basic and advanced infra20 structure improvements in the eligible community.

21 ‘‘(7) A description of the occupational and work22 force conditions in the eligible community, including

23 but not limited to existing levels of workforce skills

24 and competencies, and educational programs avail-
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1 able for workforce training and future employment

2 needs.

3 ‘‘(8) A description of how the plan will adapt to

4 changing markets, business cycles, and other vari5 ables.

6 ‘‘(9) A graduation strategy through which the el7 igible community demonstrates that the community

8 will terminate the need for Federal assistance.

9 ‘‘(c) GRANTS TO DEVELOP STRATEGIC PLANS.—

10 ‘‘(1) IN GENERAL.—The Director, upon receipt of

11 an application from a Community Economic Devel12 opment Coordinating Committee on behalf of an eligi13 ble community, shall award a grant to that commu14 nity to be used to develop the strategic plan.

15 ‘‘(2) AMOUNT.—The amount of a grant made

16 under paragraph (1) shall be determined by the Sec17 retary, but may not exceed $50,000 to each commu18 nity.

19 ‘‘(3) LIMIT.—Each community can only receive

20 1 grant under this subsection for the purpose of devel21 oping a strategic plan in any 5-year period.

22 ‘‘(d) SUBMISSION OF PLAN.—A strategic plan devel23 oped under subsection (a) shall be submitted to the Director

24 for evaluation and approval.
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1 ‘‘SEC. 277. GRANTS FOR ECONOMIC DEVELOPMENT.

2 ‘‘The Director, upon receipt of an application from the

3 Community Economic Development Coordinating Com4 mittee on behalf of an eligible community, may award a

5 grant to that community to carry out any project or pro6 gram included in the strategic plan approved under section

7 276(d) that—

8 ‘‘(1) will be located in, or will create or preserve

9 high-wage jobs, in that eligible community; and

10 ‘‘(2) implements the strategy of that eligible com11 munity to create high-wage jobs in sectors that are ex12 pected to expand, including projects that—

13 ‘‘(A) encourage industries to locate in that

14 eligible community, if such funds are not used to

15 encourage the relocation of any employer in a

16 manner that causes the dislocation of employees

17 of that employer at another facility in the

18 United States;

19 ‘‘(B) leverage resources to create or improve

20 Internet or telecommunications capabilities to

21 make the community more attractive for busi22 ness;

23 ‘‘(C) establish a funding pool for job cre24 ation through entrepreneurial activities;
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1 ‘‘(D) assist existing firms in that commu2 nity to restructure or retool to become more com3 petitive in world markets and prevent job loss; or

4 ‘‘(E) assist the community in acquiring the

5 resources and providing the level of public serv6 ices necessary to meet the objectives set out in the

7 strategic plan.

8 ‘‘SEC. 278. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘There are authorized to be appropriated to the De10 partment of Commerce, for the period beginning October 1,

11 2001, and ending September 30, 2006, such sums as may

12 be necessary to carry out the purposes of this chapter.

13 ‘‘SEC. 279. GENERAL PROVISIONS.

14 ‘‘(a) REPORT BY THE DIRECTOR.—Not later than 6

15 months after the date of enactment of the Trade Adjustment

16 Assistance for Workers, Farmers, Fishermen, Communities,

17 and Firms Act of 2002, and annually thereafter, the Direc18 tor shall submit to the Committee on Finance of the Senate

19 and the Committee on Ways and Means of the House of

20 Representatives a report regarding the programs established

21 under this title.

22 ‘‘(b) REGULATIONS.—The Secretary shall prescribe

23 such regulations as are necessary to carry out the provisions

24 of this chapter.
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1 ‘‘(c) SUPPLEMENT NOT SUPPLANT.—Funds appro2 priated under this chapter shall be used to supplement and

3 not supplant other Federal, State, and local public funds

4 expended to provide economic development assistance for

5 communities.’’.

6 TITLE IV—TRADE ADJUSTMENT

7 ASSISTANCE FOR FARMERS

8 SEC. 401. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.

9 (a) IN GENERAL.—Title II of the Trade Act of 1974

10 (19 U.S.C. 2251 et seq.) is amended by adding at the end

11 the following new chapter:

12 ‘‘CHAPTER 6—ADJUSTMENT ASSISTANCE

13 FOR FARMERS

14 ‘‘SEC. 291. DEFINITIONS.

15 ‘‘In this chapter:

16 ‘‘(1) AGRICULTURAL COMMODITY.—The term ‘ag17 ricultural commodity’ means any agricultural com18 modity (including livestock), except fish as defined in

19 section 299(1) of this Act, in its raw or natural state.

20 ‘‘(2) AGRICULTURAL COMMODITY PRODUCER.—

21 The term ‘agricultural commodity producer’ means

22 any person who is engaged in the production and sale

23 of an agricultural commodity in the United States

24 and who owns or shares the ownership and risk of
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1 loss of the agricultural commodity, except any person

2 described in section 299(2) of this Act.

3 ‘‘(3) CONTRIBUTED IMPORTANTLY.—

4 ‘‘(A) IN GENERAL.—The term ‘contributed

5 importantly’ means a cause which is important

6 but not necessarily more important than any

7 other cause.

8 ‘‘(B) DETERMINATION OF CONTRIBUTED IM9 PORTANTLY.—The determination of whether im10 ports of articles like or directly competitive with

11 an agricultural commodity with respect to which

12 a petition under this chapter was filed contrib13 uted importantly to a decline in the price of the

14 agricultural commodity shall be made by the

15 Secretary.

16 ‘‘(4) DULY AUTHORIZED REPRESENTATIVE.—The

17 term ‘duly authorized representative’ means an asso18 ciation of agricultural commodity producers.

19 ‘‘(5) NATIONAL AVERAGE PRICE.—The term ‘na20 tional average price’ means the national average

21 price paid to an agricultural commodity producer for

22 an agricultural commodity in a marketing year as

23 determined by the Secretary.

24 ‘‘(6) SECRETARY.—The term ‘Secretary’ means

25 the Secretary of Agriculture.
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1 ‘‘SEC. 292. PETITIONS; GROUP ELIGIBILITY.

2 ‘‘(a) IN GENERAL.—A petition for a certification of

3 eligibility to apply for adjustment assistance under this

4 chapter may be filed with the Secretary by a group of agri5 cultural commodity producers or by their duly authorized

6 representative. Upon receipt of the petition, the Secretary

7 shall promptly publish notice in the Federal Register that

8 the Secretary has received the petition and initiated an in9 vestigation.

10 ‘‘(b) HEARINGS.—If the petitioner, or any other person

11 found by the Secretary to have a substantial interest in the

12 proceedings, submits not later than 10 days after the date

13 of the Secretary’s publication under subsection (a) a request

14 for a hearing, the Secretary shall provide for a public hear15 ing and afford such interested person an opportunity to be

16 present, to produce evidence, and to be heard.

17 ‘‘(c) GROUP ELIGIBILITY REQUIREMENTS.—The Sec18 retary shall certify a group of agricultural commodity pro19 ducers as eligible to apply for adjustment assistance under

20 this chapter if the Secretary determines—

21 ‘‘(1) that the national average price for the agri22 cultural commodity, or a class of goods within the ag23 ricultural commodity, produced by the group for the

24 most recent marketing year for which the national av25 erage price is available is less than 80 percent of the

26 average of the national average price for such agricul-
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1 tural commodity, or such class of goods, for the 5

2 marketing years preceding the most recent marketing

3 year; and

4 ‘‘(2) that increases in imports of articles like or

5 directly competitive with the agricultural commodity,

6 or class of goods within the agricultural commodity,

7 produced by the group contributed importantly to the

8 decline in price described in paragraph (1).

9 ‘‘(d) SPECIAL RULE FOR QUALIFIED SUBSEQUENT

10 YEARS.—A group of agricultural commodity producers cer11 tified as eligible under section 293 shall be eligible to apply

12 for assistance under this chapter in any qualified year after

13 the year the group is first certified, if the Secretary deter14 mines that—

15 ‘‘(1) the national average price for the agricul16 tural commodity, or class of goods within the agricul17 tural commodity, produced by the group for the most

18 recent marketing year for which the national average

19 price is available is equal to or less than the price de20 termined under subsection (c)(1); and

21 ‘‘(2) the requirements of subsection (c)(2) are

22 met.

23 ‘‘(e) DETERMINATION OF QUALIFIED YEAR AND COM24 MODITY.—In this chapter:
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1 ‘‘(1) QUALIFIED YEAR.—The term ‘qualified

2 year’, with respect to a group of agricultural com3 modity producers certified as eligible under section

4 293, means each consecutive year after the year in

5 which the group is certified that the Secretary makes

6 the determination under subsection (c) or (d), as the

7 case may be.

8 ‘‘(2) CLASSES OF GOODS WITHIN A COM9 MODITY.—In any case in which there are separate

10 classes of goods within an agricultural commodity,

11 the Secretary shall treat each class as a separate com12 modity in determining group eligibility, the national

13 average price, and level of imports under this section

14 and section 296.

15 ‘‘SEC. 293. DETERMINATIONS BY SECRETARY OF AGRI16 CULTURE.

17 ‘‘(a) IN GENERAL.—As soon as practicable after the

18 date on which a petition is filed under section 292, but in

19 any event not later than 60 days after that date, the Sec20 retary shall determine whether the petitioning group meets

21 the requirements of section 292 (c) or (d), as the case may

22 be, and shall, if the group meets the requirements, issue a

23 certification of eligibility to apply for assistance under this

24 chapter covering agricultural commodity producers in any

25 group that meets the requirements. Each certification shall
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1 specify the date on which eligibility under this chapter be2 gins.

3 ‘‘(b) NOTICE.—Upon making a determination on a pe4 tition, the Secretary shall promptly publish a summary of

5 the determination in the Federal Register, together with the

6 Secretary’s reasons for making the determination.

7 ‘‘(c) TERMINATION OF CERTIFICATION.—Whenever the

8 Secretary determines, with respect to any certification of

9 eligibility under this chapter, that the decline in price for

10 the agricultural commodity covered by the certification is

11 no longer attributable to the conditions described in section

12 292, the Secretary shall terminate such certification and

13 promptly cause notice of such termination to be published

14 in the Federal Register, together with the Secretary’s rea15 sons for making such determination.

16 ‘‘SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN

17 INTERNATIONAL TRADE COMMISSION BEGINS

18 INVESTIGATION.

19 ‘‘(a) IN GENERAL.—Whenever the International Trade

20 Commission (in this chapter referred to as the ‘Commis21 sion’) begins an investigation under section 202 with re22 spect to an agricultural commodity, the Commission shall

23 immediately notify the Secretary of the investigation. Upon

24 receipt of the notification, the Secretary shall immediately

25 conduct a study of—
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1 ‘‘(1) the number of agricultural commodity pro2 ducers producing a like or directly competitive agri3 cultural commodity who have been or are likely to be

4 certified as eligible for adjustment assistance under

5 this chapter, and

6 ‘‘(2) the extent to which the adjustment of such

7 producers to the import competition may be facili8 tated through the use of existing programs.

9 ‘‘(b) REPORT.—Not later than 15 days after the day

10 on which the Commission makes its report under section

11 202(f), the Secretary shall submit a report to the President

12 setting forth the findings of the study under subsection (a).

13 Upon making his report to the President, the Secretary

14 shall also promptly make the report public (with the excep15 tion of information which the Secretary determines to be

16 confidential) and shall have a summary of it published in

17 the Federal Register.

18 ‘‘SEC. 295. BENEFIT INFORMATION TO AGRICULTURAL COM19 MODITY PRODUCERS.

20 ‘‘(a) IN GENERAL.—The Secretary shall provide full

21 information to producers about the benefit allowances,

22 training, and other employment services available under

23 this title and about the petition and application procedures,

24 and the appropriate filing dates, for such allowances, train25 ing, and services. The Secretary shall provide whatever as-
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1 sistance is necessary to enable groups to prepare petitions

2 or applications for program benefits under this title.

3 ‘‘(b) NOTICE OF BENEFITS.—

4 ‘‘(1) IN GENERAL.—The Secretary shall mail

5 written notice of the benefits available under this

6 chapter to each agricultural commodity producer that

7 the Secretary has reason to believe is covered by a cer8 tification made under this chapter.

9 ‘‘(2) OTHER NOTICE.—The Secretary shall pub10 lish notice of the benefits available under this chapter

11 to agricultural commodity producers that are covered

12 by each certification made under this chapter in

13 newspapers of general circulation in the areas in

14 which such producers reside.

15 ‘‘(3) OTHER FEDERAL ASSISTANCE.—The Sec16 retary shall also provide information concerning pro17 cedures for applying for and receiving all other Fed18 eral assistance and services available to workers fac19 ing economic distress.

20 ‘‘SEC. 296. QUALIFYING REQUIREMENTS FOR AGRICUL21 TURAL COMMODITY PRODUCERS.

22 ‘‘(a) IN GENERAL.—Payment of a trade adjustment al23 lowance shall be made to an adversely affected agricultural

24 commodity producer covered by a certification under this

25 chapter who files an application for such allowance within
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1 90 days after the date on which the Secretary makes a deter2 mination and issues a certification of eligibility under sec3 tion 293, if the following conditions are met:

4 ‘‘(1) The producer submits to the Secretary suffi5 cient information to establish the amount of agricul6 tural commodity covered by the application filed

7 under subsection (a) that was produced by the pro8 ducer in the most recent year.

9 ‘‘(2) The producer certifies that the producer has

10 not received cash benefits under any provision of this

11 title other than this chapter.

12 ‘‘(3) The producer’s net farm income (as deter13 mined by the Secretary) for the most recent year is

14 less than the producer’s net farm income for the latest

15 year in which no adjustment assistance was received

16 by the producer under this chapter.

17 ‘‘(4) The producer certifies that the producer has

18 met with an Extension Service employee or agent to

19 obtain, at no cost to the producer, information and

20 technical assistance that will assist the producer in

21 adjusting to import competition with respect to the

22 adversely affected agricultural commodity,

23 including—

24 ‘‘(A) information regarding the feasibility

25 and desirability of substituting 1 or more alter-
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1 native commodities for the adversely affected ag2 ricultural commodity; and

3 ‘‘(B) technical assistance that will improve

4 the competitiveness of the production and mar5 keting of the adversely affected agricultural com6 modity by the producer, including yield and

7 marketing improvements.

8 ‘‘(b) AMOUNT OF CASH BENEFITS.—

9 ‘‘(1) IN GENERAL.—Subject to the provisions of

10 section 298, an adversely affected agricultural com11 modity producer described in subsection (a) shall be

12 entitled to adjustment assistance under this chapter

13 in an amount equal to the product of—

14 ‘‘(A) one-half of the difference between—

15 ‘‘(i) an amount equal to 80 percent of

16 the average of the national average price of

17 the agricultural commodity covered by the

18 application described in subsection (a) for

19 the 5 marketing years preceding the most

20 recent marketing year, and

21 ‘‘(ii) the national average price of the

22 agricultural commodity for the most recent

23 marketing year, and
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1 ‘‘(B) the amount of the agricultural com2 modity produced by the agricultural commodity

3 producer in the most recent marketing year.

4 ‘‘(2) SPECIAL RULE FOR SUBSEQUENT QUALI5 FIED YEARS.—The amount of cash benefits for a

6 qualified year shall be determined in the same man7 ner as cash benefits are determined under paragraph

8 (1) except that the average national price of the agri9 cultural commodity shall be determined under para10 graph (1)(A)(i) by using the 5-marketing-year period

11 used to determine the amount of cash benefits for the

12 first certification.

13 ‘‘(c) MAXIMUM AMOUNT OF CASH ASSISTANCE.—The

14 maximum amount of cash benefits an agricultural com15 modity producer may receive in any 12-month period shall

16 not exceed $10,000.

17 ‘‘(d) LIMITATIONS ON OTHER ASSISTANCE.—An agri18 cultural commodity producer entitled to receive a cash ben19 efit under this chapter—

20 ‘‘(1) shall not be eligible for any other cash ben21 efit under this title, and

22 ‘‘(2) shall be entitled to employment services and

23 training benefits under part III of subchapter C of

24 chapter 2.
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1 ‘‘SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS.

2 ‘‘(a) IN GENERAL.—

3 ‘‘(1) REPAYMENT.—If the Secretary, or a court

4 of competent jurisdiction, determines that any person

5 has received any payment under this chapter to which

6 the person was not entitled, such person shall be liable

7 to repay such amount to the Secretary, except that the

8 Secretary may waive such repayment if the Secretary

9 determines, in accordance with guidelines prescribed

10 by the Secretary, that—

11 ‘‘(A) the payment was made without fault

12 on the part of such person; and

13 ‘‘(B) requiring such repayment would be

14 contrary to equity and good conscience.

15 ‘‘(2) RECOVERY OF OVERPAYMENT.—Unless an

16 overpayment is otherwise recovered, or waived under

17 paragraph (1), the Secretary shall recover the over18 payment by deductions from any sums payable to

19 such person under this chapter.

20 ‘‘(b) FALSE STATEMENT.—A person shall, in addition

21 to any other penalty provided by law, be ineligible for any

22 further payments under this chapter—

23 ‘‘(1) if the Secretary, or a court of competent ju24 risdiction, determines that the person—
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1 ‘‘(A) knowingly has made, or caused an2 other to make, a false statement or representation

3 of a material fact; or

4 ‘‘(B) knowingly has failed, or caused an5 other to fail, to disclose a material fact; and

6 ‘‘(2) as a result of such false statement or rep7 resentation, or of such nondisclosure, such person has

8 received any payment under this chapter to which the

9 person was not entitled.

10 ‘‘(c) NOTICE AND DETERMINATION.—Except for over11 payments determined by a court of competent jurisdiction,

12 no repayment may be required, and no deduction may be

13 made, under this section until a determination under sub14 section (a)(1) by the Secretary has been made, notice of the

15 determination and an opportunity for a fair hearing there16 on has been given to the person concerned, and the deter17 mination has become final.

18 ‘‘(d) PAYMENT TO TREASURY.—Any amount recovered

19 under this section shall be returned to the Treasury of the

20 United States.

21 ‘‘(e) PENALTIES.—Whoever makes a false statement of

22 a material fact knowing it to be false, or knowingly fails

23 to disclose a material fact, for the purpose of obtaining or

24 increasing for himself or for any other person any payment

25 authorized to be furnished under this chapter shall be fined
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1 not more than $10,000 or imprisoned for not more than

2 1 year, or both.

3 ‘‘SEC. 298. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘(a) IN GENERAL.—There are authorized to be appro5 priated and there are appropriated to the Department of

6 Agriculture not to exceed $90,000,000 for each of the fiscal

7 years 2002 through 2006 to carry out the purposes of this

8 chapter.

9 ‘‘(b) PROPORTIONATE REDUCTION.—If in any year,

10 the amount appropriated under this chapter is insufficient

11 to meet the requirements for adjustment assistance payable

12 under this chapter, the amount of assistance payable under

13 this chapter shall be reduced proportionately.’’.

14 (b) EFFECTIVE DATE.—The amendments made by this

15 title shall take effect on the date that is 180 days after the

16 date of enactment of this Act.

17 TITLE V—TRADE ADJUSTMENT

18 ASSISTANCE FOR FISHERMEN

19 SEC. 501. TRADE ADJUSTMENT ASSISTANCE FOR FISHER20 MEN.

21 (a) IN GENERAL.—Title II of the Trade Act of 1974

22 (19 U.S.C. 2251 et seq.), as amended by title IV of this

23 Act, is amended by adding at the end the following new

24 chapter:
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1 ‘‘CHAPTER 7—ADJUSTMENT ASSISTANCE

2 FOR FISHERMEN

3 ‘‘SEC. 299. DEFINITIONS.

4 ‘‘In this chapter:

5 ‘‘(1) COMMERCIAL FISHING, FISH, FISHERY,

6 FISHING, FISHING VESSEL, PERSON, AND UNITED

7 STATES FISH PROCESSOR.—The terms ‘commercial

8 fishing’, ‘fish’, ‘fishery’, ‘fishing’, ‘fishing vessel’, ‘per9 son’, and ‘United States fish processor’ have the same

10 meanings as such terms have in the Magnuson-Ste11 vens Fishery Conservation and Management Act (16

12 U.S.C. 1802).

13 ‘‘(2) PRODUCER.—The term ‘producer’ means

14 any person who—

15 ‘‘(A) is engaged in commercial fishing; or

16 ‘‘(B) is a United States fish processor.

17 ‘‘(3) CONTRIBUTED IMPORTANTLY.—

18 ‘‘(A) IN GENERAL.—The term ‘contributed

19 importantly’ means a cause which is important

20 but not necessarily more important than any

21 other cause.

22 ‘‘(B) DETERMINATION OF CONTRIBUTED IM23 PORTANTLY.—The determination of whether im24 ports of articles like or directly competitive with

25 a fish caught through commercial fishing or
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1 processed by a United States fish processor with

2 respect to which a petition under this chapter

3 was filed contributed importantly to a decline in

4 the price of the fish shall be made by the Sec5 retary.

6 ‘‘(4) DULY AUTHORIZED REPRESENTATIVE.—The

7 term ‘duly authorized representative’ means an asso8 ciation of producers.

9 ‘‘(5) NATIONAL AVERAGE PRICE.—The term ‘na10 tional average price’ means the national average

11 price paid to a producer for fish in a marketing year

12 as determined by the Secretary.

13 ‘‘(6) SECRETARY.—The term ‘Secretary’ means

14 the Secretary of Commerce.

15 ‘‘(7) TRADE ADJUSTMENT ASSISTANCE CEN16 TER.—The term ‘Trade Adjustment Assistance Center’

17 shall have the same meaning as such term has in sec18 tion 253.

19 ‘‘SEC. 299A. PETITIONS; GROUP ELIGIBILITY.

20 ‘‘(a) IN GENERAL.—A petition for a certification of

21 eligibility to apply for adjustment assistance under this

22 chapter may be filed with the Secretary by a group of pro23 ducers or by their duly authorized representative. Upon re24 ceipt of the petition, the Secretary shall promptly publish
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1 notice in the Federal Register that the Secretary has re2 ceived the petition and initiated an investigation.

3 ‘‘(b) HEARINGS.—If the petitioner, or any other person

4 found by the Secretary to have a substantial interest in the

5 proceedings, submits not later than 10 days after the date

6 of the Secretary’s publication under subsection (a) a request

7 for a hearing, the Secretary shall provide for a public hear8 ing and afford such interested person an opportunity to be

9 present, to produce evidence, and to be heard.

10 ‘‘(c) GROUP ELIGIBILITY REQUIREMENTS.—The Sec11 retary shall certify a group of producers as eligible to apply

12 for adjustment assistance under this chapter if the Sec13 retary determines—

14 ‘‘(1) that the national average price for the fish,

15 or a class of fish, produced by the group for the most

16 recent marketing year for which the national average

17 price is available is less than 80 percent of the aver18 age of the national average price for such fish, or such

19 class of fish, for the 5 marketing years preceding the

20 most recent marketing year; and

21 ‘‘(2) that increases in imports of articles like or

22 directly competitive with the fish, or class of fish, pro23 duced by the group contributed importantly to the de24 cline in price described in paragraph (1).
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1 ‘‘(d) SPECIAL RULE FOR QUALIFIED SUBSEQUENT

2 YEARS.—A group of producers certified as eligible under

3 section 299B shall be eligible to apply for assistance under

4 this chapter in any qualified year after the year the group

5 is first certified, if the Secretary determines that—

6 ‘‘(1) the national average price for the fish, or

7 class of fish, produced by the group for the most re8 cent marketing year for which the national average

9 price is available is equal to or less than the price de10 termined under subsection (c)(1); and

11 ‘‘(2) the requirements of subsection (c)(2) are

12 met.

13 ‘‘(e) DETERMINATION OF QUALIFIED YEAR AND COM14 MODITY.—In this chapter:

15 ‘‘(1) QUALIFIED YEAR.—The term ‘qualified

16 year’, with respect to a group of producers certified

17 as eligible under section 299B, means each consecutive

18 year after the year in which the group is certified

19 that the Secretary makes the determination under

20 subsection (c) or (d), as the case may be.

21 ‘‘(2) CLASSES OF GOODS WITHIN A COM22 MODITY.—In any case in which there are separate

23 classes of fish, the Secretary shall treat each class as

24 a separate commodity in determining group eligi-
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1 bility, the national average price, and level of imports

2 under this section and section 299E.

3 ‘‘SEC. 299B. DETERMINATIONS BY SECRETARY.

4 ‘‘(a) IN GENERAL.—As soon as practicable after the

5 date on which a petition is filed under section 299A, but

6 in any event not later than 60 days after that date, the

7 Secretary shall determine whether the petitioning group

8 meets the requirements of section 299A (c) or (d), as the

9 case may be, and shall, if the group meets the requirements,

10 issue a certification of eligibility to apply for assistance

11 under this chapter covering producers in any group that

12 meets the requirements. Each certification shall specify the

13 date on which eligibility under this chapter begins.

14 ‘‘(b) NOTICE.—Upon making a determination on a pe15 tition, the Secretary shall promptly publish a summary of

16 the determination in the Federal Register, together with the

17 Secretary’s reasons for making the determination.

18 ‘‘(c) TERMINATION OF CERTIFICATION.—Whenever the

19 Secretary determines, with respect to any certification of

20 eligibility under this chapter, that the decline in price for

21 the fish covered by the certification is no longer attributable

22 to the conditions described in section 299A, the Secretary

23 shall terminate such certification and promptly cause no24 tice of such termination to be published in the Federal Reg-
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1 ister, together with the Secretary’s reasons for making such

2 determination.

3 ‘‘SEC. 299C. STUDY BY SECRETARY WHEN INTERNATIONAL

4 TRADE COMMISSION BEGINS INVESTIGATION.

5 ‘‘(a) IN GENERAL.—Whenever the International Trade

6 Commission (in this chapter referred to as the ‘Commis7 sion’) begins an investigation under section 202 with re8 spect to a fish, the Commission shall immediately notify

9 the Secretary of the investigation. Upon receipt of the noti10 fication, the Secretary shall immediately conduct a study

11 of—

12 ‘‘(1) the number of producers producing a like or

13 directly competitive agricultural commodity who have

14 been or are likely to be certified as eligible for adjust15 ment assistance under this chapter, and

16 ‘‘(2) the extent to which the adjustment of such

17 producers to the import competition may be facili18 tated through the use of existing programs.

19 ‘‘(b) REPORT.—Not later than 15 days after the day

20 on which the Commission makes its report under section

21 202(f), the Secretary shall submit a report to the President

22 setting forth the findings of the study under subsection (a).

23 Upon making his report to the President, the Secretary

24 shall also promptly make the report public (with the excep25 tion of information which the Secretary determines to be
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1 confidential) and shall have a summary of it published in

2 the Federal Register.

3 ‘‘SEC. 299D. BENEFIT INFORMATION TO PRODUCERS.

4 ‘‘(a) IN GENERAL.—The Secretary shall provide full

5 information to producers about the benefit allowances,

6 training, and other employment services available under

7 this title and about the petition and application procedures,

8 and the appropriate filing dates, for such allowances, train9 ing, and services. The Secretary shall provide whatever as10 sistance is necessary to enable groups to prepare petitions

11 or applications for program benefits under this title.

12 ‘‘(b) NOTICE OF BENEFITS.—

13 ‘‘(1) IN GENERAL.—The Secretary shall mail

14 written notice of the benefits available under this

15 chapter to each producer that the Secretary has rea16 son to believe is covered by a certification made under

17 this chapter.

18 ‘‘(2) OTHER NOTICE.—The Secretary shall pub19 lish notice of the benefits available under this chapter

20 to producers that are covered by each certification

21 made under this chapter in newspapers of general cir22 culation in the areas in which such producers reside.

23 ‘‘SEC. 299E. QUALIFYING REQUIREMENTS FOR PRODUCERS.

24 ‘‘(a) IN GENERAL.—Payment of a trade adjustment al25 lowance shall be made to an adversely affected producer cov-
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1 ered by a certification under this chapter who files an ap2 plication for such allowance within 90 days after the date

3 on which the Secretary makes a determination and issues

4 a certification of eligibility under section 299B, if the fol5 lowing conditions are met:

6 ‘‘(1) The producer submits to the Secretary suffi7 cient information to establish the amount of fish cov8 ered by the application filed under subsection (a) that

9 was produced by the producer in the most recent year.

10 ‘‘(2) The producer certifies that the producer has

11 not received cash benefits under any provision of this

12 title other than this chapter.

13 ‘‘(3) The producer’s net fishing or processing in14 come (as determined by the Secretary) for the most

15 recent year is less than the producer’s net fishing or

16 processing income for the latest year in which no ad17 justment assistance was received by the producer

18 under this chapter.

19 ‘‘(4) The producer certifies that—

20 ‘‘(A) the producer has met with an employee

21 or agent from a Trade Adjustment Assistance

22 Center to obtain, at no cost to the producer, in23 formation and technical assistance that will as24 sist the producer in adjusting to import competi-
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1 tion with respect to the adversely affected fish,

2 including—

3 ‘‘(i) information regarding the feasi4 bility and desirability of substituting 1 or

5 more alternative fish for the adversely af6 fected fish; and

7 ‘‘(ii) technical assistance that will im8 prove the competitiveness of the production

9 and marketing of the adversely affected fish

10 by the producer, including yield and mar11 keting improvements; and

12 ‘‘(B) none of the benefits will be used to

13 purchase, lease, or finance any new fishing ves14 sel, add capacity to any fishery, or otherwise add

15 to the overcapitalization of any fishery.

16 ‘‘(b) AMOUNT OF CASH BENEFITS.—

17 ‘‘(1) IN GENERAL.—Subject to the provisions of

18 section 299G, an adversely affected producer described

19 in subsection (a) shall be entitled to adjustment as20 sistance under this chapter in an amount equal to the

21 product of—

22 ‘‘(A) one-half of the difference between—

23 ‘‘(i) an amount equal to 80 percent of

24 the average of the national average price of

25 the fish covered by the application described
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•S 1209 RS

1 in subsection (a) for the 5 marketing years

2 preceding the most recent marketing year;

3 and

4 ‘‘(ii) the national average price of the

5 fish for the most recent marketing year; and

6 ‘‘(B) the amount of the fish produced by the

7 producer in the most recent marketing year.

8 ‘‘(2) SPECIAL RULE FOR SUBSEQUENT QUALI9 FIED YEARS.—The amount of cash benefits for a

10 qualified year shall be determined in the same man11 ner as cash benefits are determined under paragraph

12 (1) except that the average national price of the fish

13 shall be determined under paragraph (1)(A)(i) by

14 using the 5-marketing-year period used to determine

15 the amount of cash benefits for the first certification.

16 A producer shall only be eligible for benefits for subse17 quent qualified years if the Secretary or his designee

18 determines that sufficient progress has been made im19 plementing the plans developed under section

20 299E(a)(4) of this title.

21 ‘‘(c) MAXIMUM AMOUNT OF CASH ASSISTANCE.—The

22 maximum amount of cash benefits a producer may receive

23 in any 12-month period shall not exceed $10,000.

24 ‘‘(d) LIMITATIONS ON OTHER ASSISTANCE.—A pro25 ducer entitled to receive a cash benefit under this chapter—
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•S 1209 RS

1 ‘‘(1) shall not be eligible for any other cash ben2 efit under this title, and

3 ‘‘(2) shall be entitled to employment services and

4 training benefits under part III of subchapter C of

5 chapter 2.

6 ‘‘SEC. 299F. FRAUD AND RECOVERY OF OVERPAYMENTS.

7 ‘‘(a) IN GENERAL.—

8 ‘‘(1) REPAYMENT.—If the Secretary, or a court

9 of competent jurisdiction, determines that any person

10 has received any payment under this chapter to which

11 the person was not entitled, such person shall be liable

12 to repay such amount to the Secretary, except that the

13 Secretary may waive such repayment if the Secretary

14 determines, in accordance with guidelines prescribed

15 by the Secretary, that—

16 ‘‘(A) the payment was made without fault

17 on the part of such person; and

18 ‘‘(B) requiring such repayment would be

19 contrary to equity and good conscience.

20 ‘‘(2) RECOVERY OF OVERPAYMENT.—Unless an

21 overpayment is otherwise recovered, or waived under

22 paragraph (1), the Secretary shall recover the over23 payment by deductions from any sums payable to

24 such person under this chapter.
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1 ‘‘(b) FALSE STATEMENT.—A person shall, in addition

2 to any other penalty provided by law, be ineligible for any

3 further payments under this chapter—

4 ‘‘(1) if the Secretary, or a court of competent ju5 risdiction, determines that the person—

6 ‘‘(A) knowingly has made, or caused an7 other to make, a false statement or representation

8 of a material fact; or

9 ‘‘(B) knowingly has failed, or caused an10 other to fail, to disclose a material fact; and

11 ‘‘(2) as a result of such false statement or rep12 resentation, or of such nondisclosure, such person has

13 received any payment under this chapter to which the

14 person was not entitled.

15 ‘‘(c) NOTICE AND DETERMINATION.—Except for over16 payments determined by a court of competent jurisdiction,

17 no repayment may be required, and no deduction may be

18 made, under this section until a determination under sub19 section (a)(1) by the Secretary has been made, notice of the

20 determination and an opportunity for a fair hearing there21 on has been given to the person concerned, and the deter22 mination has become final.

23 ‘‘(d) PAYMENT TO TREASURY.—Any amount recovered

24 under this section shall be returned to the Treasury of the

25 United States.
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1 ‘‘(e) PENALTIES.—Whoever makes a false statement of

2 a material fact knowing it to be false, or knowingly fails

3 to disclose a material fact, for the purpose of obtaining or

4 increasing for himself or for any other person any payment

5 authorized to be furnished under this chapter shall be fined

6 not more than $10,000 or imprisoned for not more than

7 1 year, or both.

8 ‘‘SEC. 299G. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘(a) IN GENERAL.—There are authorized to be appro10 priated and there are appropriated to the Department of

11 Commerce not to exceed $10,000,000 for each of the fiscal

12 years 2002 through 2006 to carry out the purposes of this

13 chapter.

14 ‘‘(b) PROPORTIONATE REDUCTION.—If in any year,

15 the amount appropriated under this chapter is insufficient

16 to meet the requirements for adjustment assistance payable

17 under this chapter, the amount of assistance payable under

18 this chapter shall be reduced proportionately.’’.

19 (b) EFFECTIVE DATE.—The amendments made by this

20 title shall take effect on the date that is 180 days after the

21 date of enactment of this Act.
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1 TITLE VI—HEALTH INSURANCE

2 COVERAGE OPTIONS FOR IN3 DIVIDUALS ELIGIBLE FOR

4 TRADE ADJUSTMENT ASSIST5 ANCE

6 SEC. 601. PREMIUM ASSISTANCE FOR COBRA CONTINU7 ATION COVERAGE FOR INDIVIDUALS AND

8 THEIR FAMILIES.

9 (a) ESTABLISHMENT.—Not later than 90 days after

10 the date of enactment of this Act, the Secretary of the Treas11 ury, in consultation with the Secretary of Labor, shall es12 tablish a program under which 75 percent of the premium

13 for COBRA continuation coverage shall be provided for an

14 eligible individual (as defined in section 604(3)) who is also

15 eligible for COBRA continuation coverage.

16 (b) LIMITATION OF PERIOD OF PREMIUM ASSIST17 ANCE.—Premium assistance provided in accordance with

18 this section shall end with respect to an eligible individual

19 on the earlier of—

20 (1) the date the eligible individual is no longer

21 covered under COBRA continuation coverage; or

22 (2) 12 months after the date the eligible indi23 vidual is first enrolled in the premium assistance pro24 gram established under this section.
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1 (c) PAYMENT ARRANGEMENTS; CREDITING OF ASSIST2 ANCE.—

3 (1) PROVISION OF ASSISTANCE.—Premium as4 sistance shall be provided under the program estab5 lished under this section through direct payment ar6 rangements with a group health plan (including a

7 multiemployer plan), an issuer of health insurance

8 coverage, an administrator, or an employer as appro9 priate with respect to the eligible individual provided

10 such assistance.

11 (2) PREMIUMS PAYABLE BY INDIVIDUAL RE12 DUCED BY AMOUNT OF ASSISTANCE.—Premium as13 sistance provided under this section shall be credited

14 by the group health plan, issuer of health insurance

15 coverage, or an administrator against the premium

16 otherwise owed by the individual involved for COBRA

17 continuation coverage.

18 (d) PROGRAM REQUIREMENTS.—Premium assistance

19 shall be provided under the program established under this

20 section to any eligible individual. An eligible individual

21 may apply for such assistance at any time during the pe22 riod in which the individual is entitled to apply for trade

23 adjustment allowances under section 235 of title II of the

24 Trade Act of 1974.
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1 (e) DISREGARD OF SUBSIDIES FOR PURPOSES OF

2 FEDERAL AND STATE PROGRAMS.—Notwithstanding any

3 other provision of law, any premium assistance provided

4 to, or on behalf of, an eligible individual under this section,

5 shall not be considered income or resources in determining

6 eligibility for, or the amount of assistance or benefits pro7 vided under, any other Federal public benefit or State or

8 local public benefit.

9 (f) CHANGE IN COBRA NOTICE.—

10 (1) GENERAL NOTICE.—

11 (A) IN GENERAL.—In the case of notices

12 provided under section 4980B(f)(6) of the Inter13 nal Revenue Code of 1986, section 2206 of the

14 Public Health Service Act (42 U.S.C. 300bb–6),

15 section 606 of the Employee Retirement Income

16 Security Act of 1974 (29 U.S.C. 1166), or section

17 8905a(f)(2)(A) of title 5, United States Code,

18 with respect to eligible individuals who become

19 entitled to elect COBRA continuation coverage

20 under subsection (a), such notices shall include

21 an additional notification to the recipient of the

22 availability of premium assistance for such cov23 erage under this section and for temporary med24 icaid assistance under section 603 for the re-
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•S 1209 RS

1 maining portion of COBRA continuation pre2 miums.

3 (B) ALTERNATIVE NOTICE.—In the case of

4 COBRA continuation coverage to which the no5 tice provision under such sections does not

6 apply, the Secretary of the Treasury, in con7 sultation with the Secretary of Labor, shall, in

8 coordination with administrators of the group

9 health plans (or other entities) that provide or

10 administer the COBRA continuation coverage

11 involved, assure the provision of such notice.

12 (C) FORM.—The requirement of the addi13 tional notification under this paragraph may be

14 met by amendment of existing notice forms or by

15 inclusion of a separate document with the notice

16 otherwise required.

17 (2) SPECIFIC REQUIREMENTS.—Each additional

18 notification under paragraph (1) shall include—

19 (A) the forms necessary for establishing eli20 gibility and enrollment in the premium assist21 ance program established under this section in

22 connection with the coverage with respect to each

23 eligible individual;

24 (B) the name, address, and telephone num25 ber necessary to contact the administrator and
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1 any other person maintaining relevant informa2 tion in connection with the premium assistance;

3 and

4 (C) the following statement displayed in a

5 prominent manner:

6 ‘‘You may be eligible to receive assistance with pay7 ment of 75 percent of your COBRA continuation coverage

8 premiums and with temporary medicaid coverage for the

9 remaining premium portion for a duration of not to exceed

10 12 months.’’.

11 (3) MODEL NOTICES.—Not later than 90 days

12 after the date of enactment of this Act, the Secretary

13 of the Treasury shall prescribe models for the addi14 tional notification required under this subsection.

15 (g) REPORTS.—On the date that is 6 months after the

16 date of enactment of this Act, and annually thereafter, the

17 Secretary of the Treasury shall submit a report to Congress

18 regarding the premium assistance program established

19 under this section that includes the following:

20 (1) The status of the implementation of the pro21 gram.

22 (2) The number of eligible individuals provided

23 assistance under the program as of the date of the re24 port.
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1 (3) The average dollar amount (monthly and an2 nually) of the premium assistance provided under the

3 program.

4 (4) The total amount of expenditures incurred

5 (with administrative expenditures noted separately)

6 under the program as of the date of the report.

7 (h) APPROPRIATION.—

8 (1) IN GENERAL.—There is appropriated to

9 carry out this section such sums as are necessary for

10 each of fiscal years 2002 through 2006.

11 (2) OBLIGATION OF FUNDS.—This section con12 stitutes budget authority in advance of appropria13 tions Acts and represents the obligation of the Federal

14 Government to provide for the payment of premium

15 assistance under this section.

16 SEC. 602. STATE OPTION TO PROVIDE TEMPORARY MED17 ICAID COVERAGE FOR CERTAIN UNINSURED

18 INDIVIDUALS.

19 (a) STATE OPTION.—Notwithstanding any other pro20 vision of law, a State may elect to provide under its med21 icaid program under title XIX of the Social Security Act

22 medical assistance in the case of an individual who is—

23 (1) an eligible individual as defined in section

24 604(3);
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1 (2) not eligible for COBRA continuation cov2 erage;

3 (3) otherwise uninsured; and

4 (4) whose assets, resources, and earned or un5 earned income (or both) do not exceed such limita6 tions (if any) as the State may establish.

7 (b) LIMITATION OF PERIOD OF COVERAGE.—Medical

8 assistance provided in accordance with this section shall

9 end with respect to an individual on the earlier of—

10 (1) the date the individual is no longer unin11 sured; or

12 (2) subject to subsection (c)(4), 12 months after

13 the date the individual first receives such assistance.

14 (c) SPECIAL RULES.—In the case of medical assistance

15 provided under this section—

16 (1) the Federal medical assistance percentage

17 under section 1905(b) of the Social Security Act (42

18 U.S.C. 1396d(b)) shall be the enhanced FMAP (as de19 fined in section 2105(b) of such Act (42 U.S.C.

20 1397ee(b)));

21 (2) a State may elect to apply any income, asset,

22 or resource limitation permitted under the State med23 icaid plan or under title XIX of such Act;

24 (3) the provisions of section 1916(g) of the Social

25 Security Act (42 U.S.C. 1396o) shall apply to the
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1 provision of such assistance in the same manner as

2 the provisions of such section apply with respect to

3 individuals provided medical assistance only under

4 subclause (XV) or (XVI) of section 1902(a)(10)(A)(ii)

5 of such Act (42 U.S.C. 1396a(a)(10)(A)(ii));

6 (4) a State may elect to provide such assistance

7 in accordance with section 1902(a)(34) of the Social

8 Security Act (42 U.S.C. 1396a(a)(34)) and any as9 sistance provided with respect to a month described in

10 that section shall not be included in the determina11 tion of the 12-month period under subsection (b)(2);

12 (5) a State may elect to make eligible for such

13 medical assistance a dependent spouse or children of

14 an individual eligible for medical assistance under

15 subsection (a), if such spouse or children are unin16 sured;

17 (6) individuals eligible for medical assistance

18 under this section shall be deemed to be described in

19 the list of individuals described in the matter pre20 ceding paragraph (1) of section 1905(a) of such Act

21 (42 U.S.C. 1396d(a));

22 (7) a State may elect to provide such medical as23 sistance without regard to any limitation under sec24 tions 401(a), 402(b), 403, and 421 of the Personal Re25 sponsibility and Work Opportunity Reconciliation
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1 Act of 1996 (8 U.S.C. 1611(a), 1612(b), 1613, and

2 1631) and no debt shall accrue under an affidavit of

3 support against any sponsor of an individual who is

4 an alien who is provided such assistance, and the cost

5 of such assistance shall not be considered as an unre6 imbursed cost; and

7 (8) the Secretary of Health and Human Services

8 shall not count, for purposes of section 1108(f) of the

9 Social Security Act (42 U.S.C. 1308(f)), such amount

10 of payments under this section as bears a reasonable

11 relationship to the average national proportion of

12 payments made under this section for the 50 States

13 and the District of Columbia to the payments other14 wise made under title XIX for such States and Dis15 trict.

16 SEC. 603. STATE OPTION TO PROVIDE TEMPORARY COV17 ERAGE UNDER MEDICAID FOR THE UNSUB18 SIDIZED PORTION OF COBRA CONTINUATION

19 PREMIUMS.

20 (a) STATE OPTION.—Notwithstanding any other pro21 vision of law, a State may elect to provide under its med22 icaid program under title XIX of the Social Security Act

23 medical assistance in the form of payment for the portion

24 of the premium for COBRA continuation coverage for which

25 an eligible individual (as defined in section 604(3)) does
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1 not receive a subsidy under the premium assistance pro2 gram established under section 601 in the case of an eligible

3 individual—

4 (1) who is also eligible for, and has elected cov5 erage under, COBRA continuation coverage;

6 (2) who is receiving premium assistance under

7 the program established under section 601; and

8 (3) whose family income does not exceed 200 per9 cent of the poverty line.

10 (b) LIMITATION OF PERIOD OF COVERAGE.—Medical

11 assistance provided in accordance with this section shall

12 end with respect to an individual on the earlier of—

13 (1) the date the eligible individual is no longer

14 covered under COBRA continuation coverage; or

15 (2) 12 months after the date the eligible indi16 vidual first receives such assistance under this section.

17 (c) SPECIAL RULES.—In the case of medical assistance

18 provided under this section—

19 (1) such assistance may be provided without re20 gard to—

21 (A) whether the State otherwise has elected

22 to make medical assistance available for COBRA

23 premiums under section 1902(a)(10)(F) of the

24 Social Security Act (42 U.S.C. 1396a(a)(10)(F));

25 or
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1 (B) the conditions otherwise imposed for the

2 provision of medical assistance for such COBRA

3 premiums under clause (XII) of the matter fol4 lowing section 1902(a)(10)(G) of the Social Se5 curity Act (42 U.S.C. 1396a(a)(10)(G)), or para6 graphs (1)(B), (1)(C), (1)(D), and (4) of section

7 1902(u) of such Act (42 U.S.C. 1396a(u)); and

8 (2) paragraphs (1), (2), (4), (5), (7), and (8) of

9 subsection (c) of section 602 apply to such assistance

10 in the same manner as such paragraphs apply to the

11 provision of medical assistance under that section.

12 SEC. 604. DEFINITIONS.

13 In this title:

14 (1) ADMINISTRATOR.—The term ‘‘administrator’’

15 has the meaning given that term in section 3(16)(A)

16 of the Employee Retirement Income Security Act of

17 1974 (29 U.S.C. 1002(16)(A)).

18 (2) COBRA CONTINUATION COVERAGE.—

19 (A) IN GENERAL.—The term ‘‘COBRA con20 tinuation coverage’’ means coverage under a

21 group health plan provided by an employer pur22 suant to title XXII of the Public Health Service

23 Act, section 4980B of the Internal Revenue Code

24 of 1986, part 6 of subtitle B of title I of the Em-
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1 ployee Retirement Income Security Act of 1974,

2 or section 8905a of title 5, United States Code.

3 (B) APPLICATION IN STATES REQUIRING

4 COVERAGE.—Such term includes continuation

5 coverage provided in a State that has enacted a

6 law that requires such continuation coverage

7 even though the continuation coverage would not

8 otherwise be required under the provisions of law

9 referred to in subparagraph (A).

10 (3) ELIGIBLE INDIVIDUAL.—For purposes of this

11 section, the term ‘‘eligible individual’’ means any in12 dividual who is a member of a group of workers cer13 tified as eligible to apply for adjustment assistance

14 under chapter 2 of title II of the Trade Act of 1974

15 (19 U.S.C. 221, et seq.).

16 (4) FEDERAL PUBLIC BENEFIT.—The term ‘‘Fed17 eral public benefit’’ has the meaning given that term

18 in section 401(c) of the Personal Responsibility and

19 Work Opportunity Reconciliation Act of 1996 (8

20 U.S.C. 1611(c)).

21 (5) GROUP HEALTH PLAN.—The term ‘‘group

22 health plan’’ has the meaning given that term in sec23 tion 2791(a) of the Public Health Service Act (42

24 U.S.C. 300gg–91(a)), section 607(1) of the Employee

25 Retirement Income Security Act of 1974 (29 U.S.C.
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1 1167(1)), and section 4980B(g)(2) of the Internal

2 Revenue Code of 1986.

3 (6) HEALTH INSURANCE COVERAGE.—The term

4 ‘‘health insurance coverage’’ has the meaning given

5 that term in section 2791(b)(1) of the Public Health

6 Service Act (42 U.S.C. 300gg–91(b)(1)).

7 (7) MULTIEMPLOYER PLAN.—The term ‘‘multi8 employer plan’’ has the meaning given that term in

9 section 3(37) of the Employee Retirement Income Se10 curity Act of 1974 (29 U.S.C. 1002(37)).

11 (8) POVERTY LINE.—The term ‘‘poverty line’’

12 has the meaning given that term in section 2110(c)(5)

13 of the Social Security Act (42 U.S.C. 1397jj(c)(5)).

14 (9) STATE.—The term ‘‘State’’ has the meaning

15 given such term for purposes of title XIX of the Social

16 Security Act (42 U.S.C. 1396 et seq.).

17 (10) STATE OR LOCAL PUBLIC BENEFIT.—The

18 term ‘‘State or local public benefit’’ has the meaning

19 given that term in section 411(c) of the Personal Re20 sponsibility and Work Opportunity Reconciliation

21 Act of 1996 (8 U.S.C. 1621(c)).

22 (11) UNINSURED.—

23 (A) IN GENERAL.—The term ‘‘uninsured’’

24 means, with respect to an individual, that the

25 individual is not covered under—
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1 (i) a group health plan;

2 (ii) health insurance coverage; or

3 (iii) a program under title XVIII,

4 XIX, or XXI of the Social Security Act

5 (other than under such title XIX pursuant

6 to section 602).

7 (B) EXCLUSION.—Such coverage under

8 clause (i) or (ii) shall not include coverage con9 sisting solely of coverage of excepted benefits (as

10 defined in section 2791(c) of the Public Health

11 Service Act (42 U.S.C. 300gg–91(c)).

12 TITLE VII—CONFORMING

13 AMENDMENTS AND EFFEC14 TIVE DATE

15 SEC. 701. CONFORMING AMENDMENTS.

16 (a) AMENDMENTS TO THE TRADE ACT OF 1974.—

17 (1) ASSISTANCE TO INDUSTRIES.—Section 265 of

18 the Trade Act of 1974 (19 U.S.C. 2355) is amended

19 by striking ‘‘certified as eligible to apply for adjust20 ment assistance under sections 231 or 251’’, and in21 serting ‘‘certified as eligible for trade adjustment as22 sistance benefits under section 231, or as eligible to

23 apply for adjustment assistance under section 251’’.

24 (2) GENERAL ACCOUNTING OFFICE REPORT.—

25 Section 280(a) of the Trade Act of 1974 is amended
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1 by striking ‘‘January 31, 1980’’ and inserting ‘‘Janu2 ary 31, 2004’’.

3 (3) JUDICIAL REVIEW.—Section 284(a) of the

4 Trade Act of 1974 (19 U.S.C. 2395(a)) is amended by

5 striking ‘‘under section 223 or section 250(c)’’ and all

6 that follows through ‘‘the Secretary of Commerce

7 under section 271’’ and inserting ‘‘under section 231,

8 a firm or its representative, or any other interested

9 domestic party aggrieved by a final determination of

10 the Secretary of Commerce under section 251, an ag11 ricultural commodity producer (as defined in section

12 291(2)) aggrieved by a determination of the Secretary

13 of Agriculture under section 293, a producer (as de14 fined in section 299(2)) aggrieved by a determination

15 of the Secretary of Commerce under section 299B, or

16 a community or any other interested domestic party

17 aggrieved by a final determination of the Director of

18 the Office of Community Trade Adjustment under sec19 tion 273’’.

20 (4) TERMINATION.—Section 285 of the Trade Act

21 of 1974 is amended to read as follows:

22 ‘‘SEC. 285. TERMINATION.

23 ‘‘(a) ASSISTANCE FOR WORKERS.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), trade adjustment assistance, vouchers, al-
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1 lowances, and other payments or benefits may not be

2 provided under chapter 2 after September 30, 2006.

3 ‘‘(2) EXCEPTION.—Notwithstanding paragraph

4 (1), a worker shall continue to receive trade adjust5 ment assistance benefits and other benefits under

6 chapter 2 for any week for which the worker meets the

7 eligibility requirements of that chapter, if on or before

8 September 30, 2006, the worker is—

9 ‘‘(A) certified as eligible for trade adjust10 ment assistance benefits under section 231; and

11 ‘‘(B) otherwise eligible to receive trade ad12 justment assistance benefits under chapter 2.

13 ‘‘(b) OTHER ASSISTANCE.—

14 ‘‘(1) ASSISTANCE FOR FIRMS.—Technical assist15 ance may not be provided under chapter 3 after Sep16 tember 30, 2006.

17 ‘‘(2) ASSISTANCE FOR COMMUNITIES.—Technical

18 assistance and other payments may not be provided

19 under chapter 4 after September 30, 2006.

20 ‘‘(3) ASSISTANCE FOR FARMERS AND FISHER21 MEN.—

22 ‘‘(A) IN GENERAL.—Except as provided in

23 subparagraph (B), adjustment assistance, vouch24 ers, allowances, and other payments or benefits
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1 may not be provided under chapter 6 or 7 after

2 September 30, 2006.

3 ‘‘(B) EXCEPTION.—Notwithstanding sub4 paragraph (A), an agricultural commodity pro5 ducer (as defined in section 291(2)) or producer

6 (as defined in section 299(2)), shall continue to

7 receive adjustment assistance benefits and other

8 benefits under chapter 6 or 7, whichever applies,

9 for any week for which the agricultural com10 modity producer or producer meets the eligibility

11 requirements of chapter 6 or 7, whichever ap12 plies, if on or before September 30, 2006, the ag13 ricultural commodity producer or producer is—

14 ‘‘(i) certified as eligible for adjustment

15 assistance benefits under chapter 6 or 7,

16 whichever applies; and

17 ‘‘(ii) is otherwise eligible to receive ad18 justment assistance benefits under such

19 chapter 6 or 7.’’.

20 (5) TABLE OF CONTENTS.—

21 (A) IN GENERAL.—The table of contents for

22 chapters 2, 3, and 4 of title II of the Trade Act

23 of 1974 is amended to read as follows:

‘‘CHAPTER 2—ADJUSTMENT ASSISTANCE FOR WORKERS

‘‘SUBCHAPTER A—GENERAL PROVISIONS

‘‘Sec. 221. Definitions.

‘‘Sec. 222. Agreements with States.
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‘‘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 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.
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‘‘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.’’.

1 (B) CHAPTERS 6 AND 7.—The table of con2 tents for title II of the Trade Act of 1974, as

3 amended by subparagraph (A), is amended by

4 inserting after the items relating to chapter 5 the

5 following:

‘‘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 investigation.

‘‘Sec. 299D. Benefit information to producers.

‘‘Sec. 299E. Qualifying requirements for producers.

‘‘Sec. 299F. Fraud and recovery of overpayments.

‘‘Sec. 299G. Authorization of appropriations.’’.

6 (b) INTERNAL REVENUE CODE.—

7 (1) ADJUSTED GROSS INCOME.—Section

8 62(a)(12) of the Internal Revenue Code of 1986 (relat9 ing to the definition of adjusted gross income) is
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1 amended by striking ‘‘trade readjustment allowances

2 under section 231 or 232’’ and inserting ‘‘trade ad3 justment allowances under section 235 or 236’’.

4 (2) FEDERAL UNEMPLOYMENT.—

5 (A) IN GENERAL.—Section 3304(a)(8) of the

6 Internal Revenue Code of 1986 (relating to the

7 approval of State unemployment insurance laws)

8 is amended to read as follows:

9 ‘‘(8) compensation shall not be denied to an in10 dividual for any week because the individual is in

11 training with the approval of the State agency, or in

12 training approved by the Secretary of Labor pursu13 ant to chapter 2 of title II of the Trade Act of 1974

14 (or because of the application, to any such week in

15 training, of State law provisions relating to avail16 ability for work, active search for work, or refusal to

17 accept work);’’.

18 (B) EFFECTIVE DATE.—

19 (i) IN GENERAL.—Except as provided

20 in clause (ii), the amendments made by this

21 paragraph shall apply in the case of com22 pensation paid for weeks beginning on or

23 after the date that is 90 days after the date

24 of enactment of this Act.
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1 (ii) MEETING OF STATE LEGISLA2 TURE.—

3 (I) IN GENERAL.—If the Secretary

4 of Labor identifies a State as requiring

5 a change to its statutes or regulations

6 in order to comply with the amend7 ments made by subparagraph (A), the

8 amendments made by subparagraph

9 (A) shall apply in the case of com10 pensation paid for weeks beginning

11 after the earlier of—

12 (aa) the date the State

13 changes its statutes or regulations

14 in order to comply with the

15 amendments made by this section;

16 or

17 (bb) the end of the first ses18 sion of the State legislature which

19 begins after the date of enactment

20 of this Act or which began prior

21 to such date and remained in ses22 sion for at least 25 calendar days

23 after such date;
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1 except that in no case shall the amend2 ments made by this Act apply before

3 the date described in clause (i).

4 (II) SESSION DEFINED.—In this

5 clause, the term ‘‘session’’ means a reg6 ular, special, budget, or other session of

7 a State legislature.

8 (c) AMENDMENTS TO TITLE 28.—

9 (1) CIVIL ACTIONS AGAINST THE UNITED

10 STATES.—Section 1581(d) of title 28, United States

11 Code, is amended—

12 (A) in paragraph (1), by striking ‘‘section

13 223’’ and inserting ‘‘section 231’’; and

14 (B) in paragraph (3), by striking ‘‘section

15 271’’ and inserting ‘‘section 273’’.

16 (2) PERSONS ENTITLED TO COMMENCE A CIVIL

17 ACTION.—Section 2631 of title 28, United States

18 Code, is amended—

19 (A) by amending subsection (d)(1) to read

20 as follows:

21 ‘‘(d)(1) A civil action to review any final determina22 tion of the Secretary of Labor under section 231 of the

23 Trade Act of 1974 with respect to the certification of work24 ers as adversely affected and eligible for trade adjustment

25 assistance under that Act may be commenced by a worker,
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1 a group of workers, a certified or recognized union, or an

2 authorized representative of such worker or group, that peti3 tions for certification under that Act and is aggrieved by

4 the final determination.’’; and

5 (B) in subsection (d)(3), by striking ‘‘Sec6 retary of Commerce under section 271’’ and in7 serting ‘‘Director of the Office of Community

8 Trade Adjustment under section 273’’.

9 (3) TIME FOR COMMENCEMENT OF ACTION.—Sec10 tion 2636(d) of title 28, United States Code, is

11 amended by striking ‘‘under section 223 of the Trade

12 Act of 1974 or a final determination of the Secretary

13 of Commerce under section 251 or section 271 of such

14 Act’’ and inserting ‘‘under section 231 of the Trade

15 Act of 1974, a final determination of the Secretary of

16 Commerce under section 251 of that Act, or a final

17 determination of the Director of the Office of Commu18 nity Trade Adjustment under section 273 of that

19 Act’’.

20 (4) SCOPE AND STANDARD OF REVIEW.—Section

21 2640(c) of title 28, United States Code, is amended by

22 striking ‘‘under section 223 of the Trade Act of 1974

23 or any final determination of the Secretary of Com24 merce under section 251 or section 271 of such Act’’

25 and inserting ‘‘under section 231 of the Trade Act of
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1 1974, a final determination of the Secretary of Com2 merce under section 251 of that Act, or a final deter3 mination of the Director of the Office of Community

4 Trade Adjustment under section 273 of that Act’’.

5 (5) RELIEF.—Section 2643(c)(2) of title 28,

6 United States Code, is amended by striking ‘‘under

7 section 223 of the Trade Act of 1974 or any final de8 termination of the Secretary of Commerce under sec9 tion 251 or section 271 of such Act’’ and inserting

10 ‘‘under section 231 of the Trade Act of 1974, a final

11 determination of the Secretary of Commerce under

12 section 251 of that Act, or a final determination of

13 the Director of the Office of Community Trade Ad14 justment under section 273 of that Act’’.

15 (d) AMENDMENT TO THE FOOD STAMP ACT OF 1977.—

16 Section 6(o)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C.

17 2015(o)(1)(B)) is amended by striking ‘‘section 236’’ and

18 inserting ‘‘section 240’’.

19 TITLE VIII—SAVINGS PROVI20 SIONS AND EFFECTIVE DATE

21 SEC. 801. SAVINGS PROVISIONS.

22 (a) PROCEEDINGS NOT AFFECTED.—

23 (1) IN GENERAL.—The provisions of this Act

24 shall not affect any petition for certification for bene25 fits under chapter 2 of title II of the Trade Act of
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1 1974 that is in effect on September 30, 2001. Deter2 minations shall be issued, appeals shall be taken

3 therefrom, and payments shall be made under those

4 determinations, as if this Act had not been enacted,

5 and orders issued in any proceeding shall continue in

6 effect until modified, terminated, superseded, or re7 voked by a duly authorized official, by a court of com8 petent jurisdiction, or by operation of law.

9 (2) MODIFICATION OR DISCONTINUANCE.—Noth10 ing in this subsection shall be deemed to prohibit the

11 discontinuance or modification of any proceeding

12 under the same terms and conditions and to the same

13 extent that the proceeding could have been discon14 tinued or modified if this Act had not been enacted.

15 (b) SUITS NOT AFFECTED.—The provisions of this Act

16 shall not affect any suit commenced before October 1, 2001,

17 and in all those suits, proceedings shall be had, appeals

18 taken, and judgments rendered in the same manner and

19 with the same effect as if this Act had not been enacted.

20 (c) NONABATEMENT OF ACTIONS.—No suit, action, or

21 other proceeding commenced by or against the Federal Gov22 ernment, or by or against any individual in the official

23 capacity of that individual as an officer of the Federal Gov24 ernment, shall abate by reason of enactment of this Act.
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1 SEC. 802. EFFECTIVE DATE.

2 (a) IN GENERAL.—Except as otherwise provided in

3 sections 401(b), 501(b), and 701(b)(2)(B), and subsection

4 (b) of this section, the amendments made by this Act shall

5 apply to—

6 (1) petitions for certification filed under chapter

7 2 or 3 of title II of the Trade Act of 1974 on or after

8 the date that is 90 days after the date of enactment

9 of this Act;

10 (2) petitions for certification filed under chapter

11 2 or 3 of title II of the Trade Act of 1974 before the

12 date that is 90 days after the date of enactment of

13 this Act, that are pending on such date; and

14 (3) certifications for assistance under chapter 4

15 of title II of the Trade Act of 1974 issued on or after

16 the date that is 90 days after the date of enactment

17 of this Act.

18 (b) WORKERS CERTIFIED AS ELIGIBLE BEFORE EF19 FECTIVE DATE.—Notwithstanding subsection (a), a worker

20 shall continue to receive (or be eligible to receive) trade ad21 justment assistance and other benefits under chapter 2 of

22 title II of the Trade Act of 1974, as in effect on the day

23 before the effective date of this Act, for any week for which

24 the worker meets the eligibility requirements of such chapter

25 2 as in effect on such date, if on or before such date, the

26 worker—
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1 (1) was certified as eligible for trade adjustment

2 assistance benefits under such chapter as in effect on

3 such date; and

4 (2) would otherwise be eligible to receive trade

5 adjustment assistance benefits under such chapter as

6 in effect on such date.

7 TITLE IX—CUSTOMS

8 REAUTHORIZATION

9 SEC. 900. SHORT TITLE.

10 This title may be cited as the ‘‘Customs Border Secu11 rity Act of 2002’’.

12 Subtitle A—United States Customs

13 Service

14 CHAPTER 1—DRUG ENFORCEMENT AND

15 OTHER NONCOMMERCIAL AND COM16 MERCIAL OPERATIONS

17 SEC. 901. AUTHORIZATION OF APPROPRIATIONS FOR NON18 COMMERCIAL OPERATIONS, COMMERCIAL OP19 ERATIONS, AND AIR AND MARINE INTERDIC20 TION.

21 (a) NONCOMMERCIAL OPERATIONS.—Section 301(b)(1)

22 of the Customs Procedural Reform and Simplification Act

23 of 1978 (19 U.S.C. 2075(b)(1)) is amended—

24 (1) in subparagraph (A) to read as follows:
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1 ‘‘(A) $886,513,000 for fiscal year 2002.’’;

2 and

3 (2) in subparagraph (B) to read as follows:

4 ‘‘(B) $909,471,000 for fiscal year 2003.’’.

5 (b) COMMERCIAL OPERATIONS.—

6 (1) IN GENERAL.—Section 301(b)(2)(A) of the

7 Customs Procedural Reform and Simplification Act

8 of 1978 (19 U.S.C. 2075(b)(2)(A)) is amended—

9 (A) in clause (i) to read as follows:

10 ‘‘(i) $1,603,482,000 for fiscal year 2002.’’;

11 and

12 (B) in clause (ii) to read as follows:

13 ‘‘(ii) $1,645,009,000 for fiscal year 2003.’’.

14 (2) AUTOMATED COMMERCIAL ENVIRONMENT

15 COMPUTER SYSTEM.—Of the amount made available

16 for each of fiscal years 2002 and 2003 under section

17 301(b)(2)(A) of the Customs Procedural Reform and

18 Simplification Act of 1978 (19 U.S.C. 2075(b)(2)(A)),

19 as amended by paragraph (1), $308,000,000 shall be

20 available until expended for each such fiscal year for

21 the development, establishment, and implementation

22 of the Automated Commercial Environment computer

23 system.

24 (3) REPORTS.—Not later than 90 days after the

25 date of enactment of this Act, and not later than each
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1 subsequent 90-day period, the Commissioner of Cus2 toms shall prepare and submit to the Committee on

3 Ways and Means of the House of Representatives and

4 the Committee on Finance of the Senate a report

5 demonstrating that the development and establish6 ment of the Automated Commercial Environment

7 computer system is being carried out in a cost-effec8 tive manner and meets the modernization require9 ments of title VI of the North American Free Trade

10 Agreements Implementation Act.

11 (c) AIR AND MARINE INTERDICTION.—Section

12 301(b)(3) of the Customs Procedural Reform and Sim13 plification Act of 1978 (19 U.S.C. 2075(b)(3)) is

14 amended—

15 (1) in subparagraph (A) to read as follows:

16 ‘‘(A) $181,860,000 for fiscal year 2002.’’;

17 and

18 (2) in subparagraph (B) to read as follows:

19 ‘‘(B) $186,570,000 for fiscal year 2003.’’.

20 (d) SUBMISSION OF OUT-YEAR BUDGET PROJEC21 TIONS.—Section 301(a) of the Customs Procedural Reform

22 and Simplification Act of 1978 (19 U.S.C. 2075(a)) is

23 amended by adding at the end the following:

24 ‘‘(3) By not later than the date on which the President

25 submits to Congress the budget of the United States Govern-
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1 ment for a fiscal year, the Commissioner of Customs shall

2 submit to the Committee on Ways and Means of the House

3 of Representatives and the Committee on Finance of the

4 Senate the projected amount of funds for the succeeding fis5 cal year that will be necessary for the operations of the Cus6 toms Service as provided for in subsection (b).’’.

7 SEC. 902. ANTITERRORIST AND ILLICIT NARCOTICS DETEC8 TION EQUIPMENT FOR THE UNITED STATES9 MEXICO BORDER, UNITED STATES-CANADA

10 BORDER, AND FLORIDA AND THE GULF

11 COAST SEAPORTS.

12 (a) FISCAL YEAR 2002.—Of the amounts made avail13 able for fiscal year 2002 under section 301(b)(1)(A) of the

14 Customs Procedural Reform and Simplification Act of 1978

15 (19 U.S.C. 2075(b)(1)(A)), as amended by section 901(a)

16 of this title, $90,244,000 shall be available until expended

17 for acquisition and other expenses associated with imple18 mentation and deployment of antiterrorist and illicit nar19 cotics detection equipment along the United States-Mexico

20 border, the United States-Canada border, and Florida and

21 the Gulf Coast seaports, as follows:

22 (1) UNITED STATES-MEXICO BORDER.—For the

23 United States-Mexico border, the following:

24 (A) $6,000,000 for 8 Vehicle and Container

25 Inspection Systems (VACIS).
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1 (B) $11,200,000 for 5 mobile truck x-rays

2 with transmission and backscatter imaging.

3 (C) $13,000,000 for the upgrade of 8 fixed4 site truck x-rays from the present energy level of

5 450,000 electron volts to 1,000,000 electron volts

6 (1–MeV).

7 (D) $7,200,000 for 8 1–MeV pallet x-rays.

8 (E) $1,000,000 for 200 portable contraband

9 detectors (busters) to be distributed among ports

10 where the current allocations are inadequate.

11 (F) $600,000 for 50 contraband detection

12 kits to be distributed among all southwest border

13 ports based on traffic volume.

14 (G) $500,000 for 25 ultrasonic container in15 spection units to be distributed among all ports

16 receiving liquid-filled cargo and to ports with a

17 hazardous material inspection facility.

18 (H) $2,450,000 for 7 automated targeting

19 systems.

20 (I) $360,000 for 30 rapid tire deflator sys21 tems to be distributed to those ports where port

22 runners are a threat.

23 (J) $480,000 for 20 portable Treasury En24 forcement Communications Systems (TECS) ter25 minals to be moved among ports as needed.
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1 (K) $1,000,000 for 20 remote watch surveil2 lance camera systems at ports where there are

3 suspicious activities at loading docks, vehicle

4 queues, secondary inspection lanes, or areas

5 where visual surveillance or observation is ob6 scured.

7 (L) $1,254,000 for 57 weigh-in-motion sen8 sors to be distributed among the ports with the

9 greatest volume of outbound traffic.

10 (M) $180,000 for 36 AM traffic information

11 radio stations, with 1 station to be located at

12 each border crossing.

13 (N) $1,040,000 for 260 inbound vehicle

14 counters to be installed at every inbound vehicle

15 lane.

16 (O) $950,000 for 38 spotter camera systems

17 to counter the surveillance of customs inspection

18 activities by persons outside the boundaries of

19 ports where such surveillance activities are oc20 curring.

21 (P) $390,000 for 60 inbound commercial

22 truck transponders to be distributed to all ports

23 of entry.
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1 (Q) $1,600,000 for 40 narcotics vapor and

2 particle detectors to be distributed to each border

3 crossing.

4 (R) $400,000 for license plate reader auto5 matic targeting software to be installed at each

6 port to target inbound vehicles.

7 (2) UNITED STATES-CANADA BORDER.—For the

8 United States-Canada border, the following:

9 (A) $3,000,000 for 4 Vehicle and Container

10 Inspection Systems (VACIS).

11 (B) $8,800,000 for 4 mobile truck x-rays

12 with transmission and backscatter imaging.

13 (C) $3,600,000 for 4 1–MeV pallet x-rays.

14 (D) $250,000 for 50 portable contraband de15 tectors (busters) to be distributed among ports

16 where the current allocations are inadequate.

17 (E) $300,000 for 25 contraband detection

18 kits to be distributed among ports based on traf19 fic volume.

20 (F) $240,000 for 10 portable Treasury En21 forcement Communications Systems (TECS) ter22 minals to be moved among ports as needed.

23 (G) $400,000 for 10 narcotics vapor and

24 particle detectors to be distributed to each border

25 crossing based on traffic volume.
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1 (3) FLORIDA AND GULF COAST SEAPORTS.—For

2 Florida and the Gulf Coast seaports, the following:

3 (A) $4,500,000 for 6 Vehicle and Container

4 Inspection Systems (VACIS).

5 (B) $11,800,000 for 5 mobile truck x-rays

6 with transmission and backscatter imaging.

7 (C) $7,200,000 for 8 1–MeV pallet x-rays.

8 (D) $250,000 for 50 portable contraband de9 tectors (busters) to be distributed among ports

10 where the current allocations are inadequate.

11 (E) $300,000 for 25 contraband detection

12 kits to be distributed among ports based on traf13 fic volume.

14 (b) FISCAL YEAR 2003.—Of the amounts made avail15 able for fiscal year 2003 under section 301(b)(1)(B) of the

16 Customs Procedural Reform and Simplification Act of 1978

17 (19 U.S.C. 2075(b)(1)(B)), as amended by section 901(a)

18 of this title, $9,000,000 shall be available until expended

19 for the maintenance and support of the equipment and

20 training of personnel to maintain and support the equip21 ment described in subsection (a).

22 (c) ACQUISITION OF TECHNOLOGICALLY SUPERIOR

23 EQUIPMENT; TRANSFER OF FUNDS.—

24 (1) IN GENERAL.—The Commissioner of Customs

25 may use amounts made available for fiscal year 2002
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1 under section 301(b)(1)(A) of the Customs Procedural

2 Reform and Simplification Act of 1978 (19 U.S.C.

3 2075(b)(1)(A)), as amended by section 901(a) of this

4 title, for the acquisition of equipment other than the

5 equipment described in subsection (a) if such other

6 equipment—

7 (A)(i) is technologically superior to the

8 equipment described in subsection (a); and

9 (ii) will achieve at least the same results at

10 a cost that is the same or less than the equip11 ment described in subsection (a); or

12 (B) can be obtained at a lower cost than the

13 equipment described in subsection (a).

14 (2) TRANSFER OF FUNDS.—Notwithstanding any

15 other provision of this section, the Commissioner of

16 Customs may reallocate an amount not to exceed 10

17 percent of—

18 (A) the amount specified in any of subpara19 graphs (A) through (R) of subsection (a)(1) for

20 equipment specified in any other of such sub21 paragraphs (A) through (R);

22 (B) the amount specified in any of subpara23 graphs (A) through (G) of subsection (a)(2) for

24 equipment specified in any other of such sub25 paragraphs (A) through (G); and
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1 (C) the amount specified in any of subpara2 graphs (A) through (E) of subsection (a)(3) for

3 equipment specified in any other of such sub4 paragraphs (A) through (E).

5 SEC. 903. COMPLIANCE WITH PERFORMANCE PLAN RE6 QUIREMENTS.

7 As part of the annual performance plan for each of

8 the fiscal years 2002 and 2003 covering each program activ9 ity set forth in the budget of the United States Customs

10 Service, as required under section 1115 of title 31, United

11 States Code, the Commissioner of Customs shall establish

12 performance goals, performance indicators, and comply

13 with all other requirements contained in paragraphs (1)

14 through (6) of subsection (a) of such section with respect

15 to each of the activities to be carried out pursuant to sec16 tions 911 of this title.

17 CHAPTER 2—CHILD CYBER-SMUGGLING

18 CENTER OF THE CUSTOMS SERVICE

19 SEC. 911. AUTHORIZATION OF APPROPRIATIONS FOR PRO20 GRAM TO PREVENT CHILD PORNOGRAPHY/

21 CHILD SEXUAL EXPLOITATION.

22 (a) AUTHORIZATION OF APPROPRIATIONS.—There is

23 authorized to be appropriated to the Customs Service

24 $10,000,000 for fiscal year 2002 to carry out the program

25 to prevent child pornography/child sexual exploitation es-
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1 tablished by the Child Cyber-Smuggling Center of the Cus2 toms Service.

3 (b) USE OF AMOUNTS FOR CHILD PORNOGRAPHY

4 CYBER TIPLINE.—Of the amount appropriated under sub5 section (a), the Customs Service shall provide 3.75 percent

6 of such amount to the National Center for Missing and Ex7 ploited Children for the operation of the child pornography

8 cyber tipline of the Center and for increased public aware9 ness of the tipline.

10 CHAPTER 3—MISCELLANEOUS

11 PROVISIONS

12 SEC. 921. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR

13 UNITED STATES-CANADA BORDER.

14 Of the amount made available for fiscal year 2002

15 under paragraphs (1) and (2)(A) of section 301(b) of the

16 Customs Procedural Reform and Simplification Act of 1978

17 (19 U.S.C. 2075(b)), as amended by section 901 of this title,

18 $25,000,000 shall be available until expended for the Cus19 toms Service to hire approximately 285 additional Customs

20 Service officers to address the needs of the offices and ports

21 along the United States-Canada border.

22 SEC. 922. STUDY AND REPORT RELATING TO PERSONNEL

23 PRACTICES OF THE CUSTOMS SERVICE.

24 (a) STUDY.—The Commissioner of Customs shall con25 duct a study of current personnel practices of the Customs
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1 Service, including an overview of performance standards

2 and the effect and impact of the collective bargaining proc3 ess on drug interdiction efforts of the Customs Service and

4 a comparison of duty rotation policies of the Customs Serv5 ice and other Federal agencies that employ similarly-situ6 ated personnel.

7 (b) REPORT.—Not later than 120 days after the date

8 of enactment of this Act, the Commissioner of Customs shall

9 submit to the Committee on Ways and Means of the House

10 of Representatives and the Committee on Finance of the

11 Senate a report containing the results of the study con12 ducted under subsection (a).

13 SEC. 923. STUDY AND REPORT RELATING TO ACCOUNTING

14 AND AUDITING PROCEDURES OF THE CUS15 TOMS SERVICE.

16 (a) STUDY.—(1) The Commissioner of Customs shall

17 conduct a study of actions by the Customs Service to ensure

18 that appropriate training is being provided to Customs

19 Service personnel who are responsible for financial auditing

20 of importers.

21 (2) In conducting the study, the Commissioner—

22 (A) shall specifically identify those actions taken

23 to comply with provisions of law that protect the pri24 vacy and trade secrets of importers, such as section
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1 552(b) of title 5, United States Code, and section

2 1905 of title 18, United States Code; and

3 (B) shall provide for public notice and comment

4 relating to verification of the actions described in sub5 paragraph (A).

6 (b) REPORT.—Not later than 6 months after the date

7 of enactment of this Act, the Commissioner of Customs shall

8 submit to the Committee on Ways and Means of the House

9 of Representatives and the Committee on Finance of the

10 Senate a report containing the results of the study con11 ducted under subsection (a).

12 SEC. 924. ESTABLISHMENT AND IMPLEMENTATION OF COST

13 ACCOUNTING SYSTEM; REPORTS.

14 (a) ESTABLISHMENT AND IMPLEMENTATION.—

15 (1) IN GENERAL.—Not later than September 30,

16 2003, the Commissioner of Customs shall, in accord17 ance with the audit of the Customs Service’s fiscal

18 years 2000 and 1999 financial statements (as con19 tained in the report of the Office of the Inspector Gen20 eral of the Department of the Treasury issued on Feb21 ruary 23, 2001), establish and implement a cost ac22 counting system for expenses incurred in both com23 mercial and noncommercial operations of the Customs

24 Service.
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1 (2) ADDITIONAL REQUIREMENT.—The cost ac2 counting system described in paragraph (1) shall pro3 vide for an identification of expenses based on the

4 type of operation, the port at which the operation

5 took place, the amount of time spent on the operation

6 by personnel of the Customs Service, and an identi7 fication of expenses based on any other appropriate

8 classification necessary to provide for an accurate

9 and complete accounting of the expenses.

10 (b) REPORTS.—Beginning on the date of enactment of

11 this Act and ending on the date on which the cost account12 ing system described in subsection (a) is fully implemented,

13 the Commissioner of Customs shall prepare and submit to

14 Congress on a quarterly basis a report on the progress of

15 implementing the cost accounting system pursuant to sub16 section (a).

17 SEC. 925. STUDY AND REPORT RELATING TO TIMELINESS

18 OF PROSPECTIVE RULINGS.

19 (a) STUDY.—The Comptroller General shall conduct a

20 study on the extent to which the Office of Regulations and

21 Rulings of the Customs Service has made improvements to

22 decrease the amount of time to issue prospective rulings

23 from the date on which a request for the ruling is received

24 by the Customs Service.
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1 (b) REPORT.—Not later than 1 year after the date of

2 enactment of this Act, the Comptroller General shall submit

3 to the Committee on Ways and Means of the House of Rep4 resentatives and the Committee on Finance of the Senate

5 a report containing the results of the study conducted under

6 subsection (a).

7 (c) DEFINITION.—In this section, the term ‘‘prospec8 tive ruling’’ means a ruling that is requested by an im9 porter on goods that are proposed to be imported into the

10 United States and that relates to the proper classification,

11 valuation, or marking of such goods.

12 SEC. 926. STUDY AND REPORT RELATING TO CUSTOMS

13 USER FEES.

14 (a) STUDY.—The Comptroller General shall conduct a

15 study on the extent to which the amount of each customs

16 user fee imposed under section 13031(a) of the Consolidated

17 Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.

18 58c(a)) is commensurate with the level of services provided

19 by the Customs Service relating to the fee so imposed.

20 (b) REPORT.—Not later than 120 days after the date

21 of enactment of this Act, the Comptroller General shall sub22 mit to the Committee on Ways and Means of the House

23 of Representatives and the Committee on Finance of the

24 Senate a report in classified form containing—
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1 (1) the results of the study conducted under sub2 section (a); and

3 (2) recommendations for the appropriate amount

4 of the customs user fees if such results indicate that

5 the fees are not commensurate with the level of serv6 ices provided by the Customs Service.

7 CHAPTER 4—ANTITERRORISM

8 PROVISIONS

9 SEC. 931. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS

10 OF ENTRY, OR STAFFING OF THE CUSTOMS

11 SERVICE.

12 Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318)

13 is amended—

14 (1) by striking ‘‘Whenever the President’’ and in15 serting ‘‘(a) Whenever the President’’; and

16 (2) by adding at the end the following:

17 ‘‘(b)(1) Notwithstanding any other provision of law,

18 the Secretary of the Treasury, when necessary to respond

19 to a national emergency declared under the National Emer20 gencies Act (50 U.S.C. 1601 et seq.) or to a specific threat

21 to human life or national interests, is authorized to take

22 the following actions on a temporary basis:

23 ‘‘(A) Eliminate, consolidate, or relocate any of24 fice or port of entry of the Customs Service.
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1 ‘‘(B) Modify hours of service, alter services ren2 dered at any location, or reduce the number of em3 ployees at any location.

4 ‘‘(C) Take any other action that may be nec5 essary to directly respond to the national emergency

6 or specific threat.

7 ‘‘(2) Notwithstanding any other provision of law, the

8 Commissioner of Customs, when necessary to respond to a

9 specific threat to human life or national interests, is author10 ized to close temporarily any Customs office or port of entry

11 or take any other lesser action that may be necessary to

12 respond to the specific threat.

13 ‘‘(3) The Secretary of the Treasury or the Commis14 sioner of Customs, as the case may be, shall notify the Com15 mittee on Ways and Means of the House of Representatives

16 and the Committee on Finance of the Senate not later than

17 72 hours after taking any action under paragraph (1) or

18 (2).’’.

19 SEC. 932. MANDATORY ADVANCED ELECTRONIC INFORMA20 TION FOR CARGO AND PASSENGERS.

21 (a) CARGO INFORMATION.—

22 (1) IN GENERAL.—Section 431(b) of the Tariff

23 Act of 1930 (19 U.S.C. 1431(b)) is amended—
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1 (A) in the first sentence, by striking ‘‘Any

2 manifest’’ and inserting ‘‘(1) Any manifest’’;

3 and

4 (B) by adding at the end the following:

5 ‘‘(2) In addition to any other requirement under this

6 section, for each land, air, or vessel carrier required to make

7 entry or obtain clearance under the customs laws of the

8 United States, the pilot, the master, operator, or owner of

9 such carrier (or the authorized agent of such operator or

10 owner) shall provide by electronic transmission cargo mani11 fest information in advance of such entry or clearance in

12 such manner, time, and form as prescribed under regula13 tions by the Secretary. The Secretary may exclude any class

14 of land, air, or vessel carrier for which the Secretary con15 cludes the requirements of this subparagraph are not nec16 essary.’’.

17 (2) CONFORMING AMENDMENTS.—Subparagraphs

18 (A) and (C) of section 431(d)(1) of such Act are each

19 amended by inserting before the semicolon ‘‘or sub20 section (b)(2)’’.

21 (b) PASSENGER INFORMATION.—Part II of title IV of

22 the Tariff Act of 1930 (19 U.S.C. 1431 et seq.) is amended

23 by inserting after section 431 the following:
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1 ‘‘SEC. 432. PASSENGER AND CREW MANIFEST INFORMATION

2 REQUIRED FOR LAND, AIR, OR VESSEL CAR3 RIERS.

4 ‘‘(a) IN GENERAL.—For every person arriving or de5 parting on a land, air, or vessel carrier required to make

6 entry or obtain clearance under the customs laws of the

7 United States, the pilot, the master, operator, or owner of

8 such carrier (or the authorized agent of such operator or

9 owner) shall provide by electronic transmission manifest in10 formation described in subsection (b) in advance of such

11 entry or clearance in such manner, time, and form as pre12 scribed under regulations by the Secretary.

13 ‘‘(b) INFORMATION DESCRIBED.—The information de14 scribed in this subsection shall include for each person de15 scribed in subsection (a), the person’s—

16 ‘‘(1) full name;

17 ‘‘(2) date of birth and citizenship;

18 ‘‘(3) gender;

19 ‘‘(4) passport number and country of issuance;

20 ‘‘(5) United States visa number or resident alien

21 card number, as applicable;

22 ‘‘(6) passenger name record; and

23 ‘‘(7) such additional information that the Sec24 retary, by regulation, determines is reasonably nec25 essary to ensure aviation and maritime safety pursu-
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1 ant to the laws enforced or administered by the Cus2 toms Service.’’.

3 (c) DEFINITION.—Section 401 of the Tariff Act of 1930

4 (19 U.S.C. 1401) is amended by adding at the end the fol5 lowing:

6 ‘‘(t) The term ‘land, air, or vessel carrier’ means a

7 land, air, or vessel carrier, as the case may be, that trans8 ports goods or passengers for payment or other consider9 ation, including money or services rendered.’’.

10 (d) EFFECTIVE DATE.—The amendments made by this

11 section shall take effect beginning 45 days after the date

12 of enactment of this Act.

13 SEC. 933. BORDER SEARCH AUTHORITY FOR CERTAIN CON14 TRABAND IN OUTBOUND MAIL.

15 The Tariff Act of 1930 is amended by inserting after

16 section 582 the following:

17 ‘‘SEC. 583. EXAMINATION OF OUTBOUND MAIL.

18 ‘‘(a) EXAMINATION.—

19 ‘‘(1) IN GENERAL.—For purposes of ensuring

20 compliance with the Customs laws of the United

21 States and other laws enforced by the Customs Serv22 ice, including the provisions of law described in para23 graph (2), a Customs officer may, subject to the provi24 sions of this section, stop and search at the border,

25 without a search warrant, mail of domestic origin
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1 transmitted for export by the United States Postal

2 Service and foreign mail transiting the United States

3 that is being imported or exported by the United

4 States Postal Service.

5 ‘‘(2) PROVISIONS OF LAW DESCRIBED.—The pro6 visions of law described in this paragraph are the fol7 lowing:

8 ‘‘(A) Section 5316 of title 31, United States

9 Code (relating to reports on exporting and im10 porting monetary instruments).

11 ‘‘(B) Sections 1461, 1463, 1465, and 1466

12 and chapter 110 of title 18, United States Code

13 (relating to obscenity and child pornography).

14 ‘‘(C) Section 1003 of the Controlled Sub15 stances Import and Export Act (21 U.S.C. 953;

16 relating to exportation of controlled substances).

17 ‘‘(D) The Export Administration Act of

18 1979 (50 U.S.C. app. 2401 et seq.).

19 ‘‘(E) Section 38 of the Arms Export Control

20 Act (22 U.S.C. 2778).

21 ‘‘(F) The International Emergency Eco22 nomic Powers Act (50 U.S.C. 1701 et seq.).

23 ‘‘(b) SEARCH OF MAIL NOT SEALED AGAINST INSPEC24 TION AND OTHER MAIL.—Mail not sealed against inspec25 tion under the postal laws and regulations of the United
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1 States, mail which bears a customs declaration, and mail

2 with respect to which the sender or addressee has consented

3 in writing to search, may be searched by a Customs officer.

4 ‘‘(c) SEARCH OF MAIL SEALED AGAINST INSPEC5 TION.—(1) Mail sealed against inspection under the postal

6 laws and regulations of the United States may be searched

7 by a Customs officer, subject to paragraph (2), upon reason8 able cause to suspect that such mail contains one or more

9 of the following:

10 ‘‘(A) Monetary instruments, as defined in section

11 1956 of title 18, United States Code.

12 ‘‘(B) A weapon of mass destruction, as defined

13 in section 2332a(b) of title 18, United States Code.

14 ‘‘(C) A drug or other substance listed in schedule

15 I, II, III, or IV in section 202 of the Controlled Sub16 stances Act (21 U.S.C. 812).

17 ‘‘(D) National defense and related information

18 transmitted in violation of any of sections 793

19 through 798 of title 18, United States Code.

20 ‘‘(E) Merchandise mailed in violation of section

21 1715 or 1716 of title 18, United States Code.

22 ‘‘(F) Merchandise mailed in violation of any

23 provision of chapter 71 (relating to obscenity) or

24 chapter 110 (relating to sexual exploitation and other

25 abuse of children) of title 18, United States Code.
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1 ‘‘(G) Merchandise mailed in violation of the Ex2 port Administration Act of 1979 (50 U.S.C. app.

3 2401 et seq.).

4 ‘‘(H) Merchandise mailed in violation of section

5 38 of the Arms Export Control Act (22 U.S.C. 2778).

6 ‘‘(I) Merchandise mailed in violation of the

7 International Emergency Economic Powers Act (50

8 U.S.C. 1701 et seq.).

9 ‘‘(J) Merchandise mailed in violation of the

10 Trading with the Enemy Act (50 U.S.C. app. 1 et

11 seq.).

12 ‘‘(K) Merchandise subject to any other law en13 forced by the Customs Service.

14 ‘‘(2) No person acting under authority of paragraph

15 (1) shall read, or authorize any other person to read, any

16 correspondence contained in mail sealed against inspection

17 unless prior to so reading—

18 ‘‘(A) a search warrant has been issued pursuant

19 to Rule 41, Federal Rules of Criminal Procedure; or

20 ‘‘(B) the sender or addressee has given written

21 authorization for such reading.’’.

22 SEC. 934. AUTHORIZATION OF APPROPRIATIONS FOR REES23 TABLISHMENT OF CUSTOMS OPERATIONS IN

24 NEW YORK CITY.

25 (a) AUTHORIZATION OF APPROPRIATIONS.—
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1 (1) IN GENERAL.—There is authorized to be ap2 propriated for the reestablishment of operations of the

3 Customs Service in New York, New York, such sums

4 as may be necessary for fiscal year 2002.

5 (2) OPERATIONS DESCRIBED.—The operations

6 referred to in paragraph (1) include, but are not lim7 ited to, the following:

8 (A) Operations relating to the Port Director

9 of New York City, the New York Customs Man10 agement Center (including the Director of Field

11 Operations), and the Special Agent-In-Charge

12 for New York.

13 (B) Commercial operations, including tex14 tile enforcement operations and salaries and ex15 penses of—

16 (i) trade specialists who determine the

17 origin and value of merchandise;

18 (ii) analysts who monitor the entry

19 data into the United States of textiles and

20 textile products; and

21 (iii) Customs officials who work with

22 foreign governments to examine textile mak23 ers and verify entry information.
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1 (b) AVAILABILITY.—Amounts appropriated pursuant

2 to the authorization of appropriations under subsection (a)

3 are authorized to remain available until expended.

4 CHAPTER 5—TEXTILE TRANSSHIPMENT

5 PROVISIONS

6 SEC. 941. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONI7 TORING BY CUSTOMS SERVICE.

8 (a) GAO AUDIT.—The Comptroller General of the

9 United States shall conduct an audit of the system estab10 lished and carried out by the Customs Service to monitor

11 textile transshipment.

12 (b) REPORT.—Not later than 9 months after the date

13 of enactment of this Act, the Comptroller General shall sub14 mit to the Committee on Ways and Means of the House

15 of Representatives and Committee on Finance of the Senate

16 a report that contains the results of the study conducted

17 under subsection (a), including recommendations for im18 provements to the transshipment monitoring system if ap19 plicable.

20 (c) TRANSSHIPMENT DESCRIBED.—Transshipment

21 within the meaning of this section has occurred when pref22 erential treatment under any provision of law has been

23 claimed for a textile or apparel article on the basis of mate24 rial false information concerning the country of origin,

25 manufacture, processing, or assembly of the article or any
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1 of its components. For purposes of the preceding sentence,

2 false information is material if disclosure of the true infor3 mation would mean or would have meant that the article

4 is or was ineligible for preferential treatment under the pro5 vision of law in question.

6 SEC. 942. AUTHORIZATION OF APPROPRIATIONS FOR TEX7 TILE TRANSSHIPMENT ENFORCEMENT OPER8 ATIONS.

9 (a) AUTHORIZATION OF APPROPRIATIONS.—

10 (1) IN GENERAL.—There is authorized to be ap11 propriated for textile transshipment enforcement oper12 ations of the Customs Service $9,500,000 for fiscal

13 year 2002.

14 (2) AVAILABILITY.—Amounts appropriated pur15 suant to the authorization of appropriations under

16 paragraph (1) are authorized to remain available

17 until expended.

18 (b) USE OF FUNDS.—Of the amount appropriated

19 pursuant to the authorization of appropriations under sub20 section (a), the following amounts are authorized to be made

21 available for the following purposes:

22 (1) IMPORT SPECIALISTS.—$1,463,000 for 21

23 Customs import specialists to be assigned to selected

24 ports for documentation review to support detentions

25 and exclusions and 1 additional Customs import spe-
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1 cialist assigned to the Customs headquarters textile

2 program to administer the program and provide over3 sight.

4 (2) INSPECTORS.—$652,080 for 10 Customs in5 spectors to be assigned to selected ports to examine

6 targeted high-risk shipments.

7 (3) INVESTIGATORS.—(A) $1,165,380 for 10 in8 vestigators to be assigned to selected ports to inves9 tigate instances of smuggling, quota and trade agree10 ment circumvention, and use of counterfeit visas to

11 enter inadmissible goods.

12 (B) $149,603 for 1 investigator to be assigned to

13 Customs headquarters textile program to coordinate

14 and ensure implementation of textile production

15 verification team results from an investigation per16 spective.

17 (4) INTERNATIONAL TRADE SPECIALISTS.—

18 $226,500 for 3 international trade specialists to be

19 assigned to Customs headquarters to be dedicated to

20 illegal textile transshipment policy issues and other

21 free trade agreement enforcement issues.

22 (5) PERMANENT IMPORT SPECIALISTS FOR HONG

23 KONG.—$500,000 for 2 permanent import specialist

24 positions and $500,000 for 2 investigators to be as25 signed to Hong Kong to work with Hong Kong and
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1 other government authorities in Southeast Asia to as2 sist such authorities pursue proactive enforcement of

3 bilateral trade agreements.

4 (6) VARIOUS PERMANENT TRADE POSITIONS.—

5 $3,500,000 for the following:

6 (A) 2 permanent positions to be assigned to

7 the Customs attache ́ office in Central America to

8 address trade enforcement issues for that region.

9 (B) 2 permanent positions to be assigned to

10 the Customs attache ́ office in South Africa to ad11 dress trade enforcement issues pursuant to the

12 African Growth and Opportunity Act (title I of

13 Public Law 106–200).

14 (C) 4 permanent positions to be assigned to

15 the Customs attache ́ office in Mexico to address

16 the threat of illegal textile transshipment through

17 Mexico and other related issues under the North

18 American Free Trade Agreement Act.

19 (D) 2 permanent positions to be assigned to

20 the Customs attache ́ office in Seoul, South Korea,

21 to address the trade issues in the geographic re22 gion.

23 (E) 2 permanent positions to be assigned to

24 the proposed Customs attache ́ office in New

25 Delhi, India, to address the threat of illegal tex-
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1 tile transshipment and other trade enforcement

2 issues.

3 (F) 2 permanent positions to be assigned to

4 the Customs attache ́ office in Rome, Italy, to ad5 dress trade enforcement issues in the geographic

6 region, including issues under free trade agree7 ments with Jordan and Israel.

8 (7) ATTORNEYS.—$179,886 for 2 attorneys for

9 the Office of the Chief Counsel of the Customs Service

10 to pursue cases regarding illegal textile trans11 shipment.

12 (8) AUDITORS.—$510,000 for 6 Customs audi13 tors to perform internal control reviews and document

14 and record reviews of suspect importers.

15 (9) ADDITIONAL TRAVEL FUNDS.—$250,000 for

16 deployment of additional textile production

17 verification teams to sub-Saharan Africa.

18 (10) TRAINING.—(A) $75,000 for training of

19 Customs personnel.

20 (B) $200,000 for training for foreign counter21 parts in risk management analytical techniques and

22 for teaching factory inspection techniques, model law

23 Development, and enforcement techniques.

24 (11) OUTREACH.—$60,000 for outreach efforts to

25 United States importers.
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1 SEC. 943. IMPLEMENTATION OF THE AFRICAN GROWTH AND

2 OPPORTUNITY ACT.

3 Of the amount made available for fiscal year 2002

4 under section 301(b)(2)(A) of the Customs Procedural Re5 form and Simplification Act of 1978 (19 U.S.C.

6 2075(b)(2)(A)), as amended by section 901(b)(1) of this

7 title, $1,317,000 shall be available until expended for the

8 Customs Service to provide technical assistance to help sub9 Saharan Africa countries develop and implement effective

10 visa and anti-transshipment systems as required by the Af11 rican Growth and Opportunity Act (title I of Public Law

12 106–200), as follows:

13 (1) TRAVEL FUNDS.—$600,000 for import spe14 cialists, special agents, and other qualified Customs

15 personnel to travel to sub-Saharan Africa countries to

16 provide technical assistance in developing and imple17 menting effective visa and anti-transshipment sys18 tems.

19 (2) IMPORT SPECIALISTS.—$266,000 for 4 im20 port specialists to be assigned to Customs head21 quarters to be dedicated to providing technical assist22 ance to sub-Saharan African countries for developing

23 and implementing effective visa and anti-trans24 shipment systems.
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1 (3) DATA RECONCILIATION ANALYSTS.—$151,000

2 for 2 data reconciliation analysts to review apparel

3 shipments.

4 (4) SPECIAL AGENTS.—$300,000 for 2 special

5 agents to be assigned to Customs headquarters to be

6 available to provide technical assistance to sub-Saha7 ran African countries in the performance of investiga8 tions and other enforcement initiatives.

9 Subtitle B—Office of the United

10 States Trade Representative

11 SEC. 951. AUTHORIZATION OF APPROPRIATIONS.

12 (a) IN GENERAL.—Section 141(g)(1) of the Trade Act

13 of 1974 (19 U.S.C. 2171(g)(1)) is amended—

14 (1) in subparagraph (A)—

15 (A) in the matter preceding clause (i), by

16 striking ‘‘not to exceed’’;

17 (B) in clause (i) to read as follows:

18 ‘‘(i) $30,000,000 for fiscal year 2002.’’; and

19 (C) in clause (ii) to read as follows:

20 ‘‘(ii) $31,000,000 for fiscal year 2003.’’; and

21 (2) in subparagraph (B)—

22 (A) in clause (i), by adding ‘‘and’’ at the

23 end;

24 (B) by striking clause (ii); and
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1 (C) by redesignating clause (iii) as clause

2 (ii).

3 (b) SUBMISSION OF OUT-YEAR BUDGET PROJEC4 TIONS.—Section 141(g) of the Trade Act of 1974 (19 U.S.C.

5 2171(g)) is amended by adding at the end the following:

6 ‘‘(3) By not later than the date on which the President

7 submits to Congress the budget of the United States Govern8 ment for a fiscal year, the United States Trade Representa9 tive shall submit to the Committee on Ways and Means of

10 the House of Representatives and the Committee on Finance

11 of the Senate the projected amount of funds for the suc12 ceeding fiscal year that will be necessary for the Office to

13 carry out its functions.’’.

14 (c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT

15 U.S. TRADE REPRESENTATIVE FOR CONGRESSIONAL AF16 FAIRS.—

17 (1) IN GENERAL.—There is authorized to be ap18 propriated such sums as may be necessary for fiscal

19 year 2002 for the salaries and expenses of two addi20 tional legislative specialist employee positions within

21 the Office of the Assistant United States Trade Rep22 resentative for Congressional Affairs.

23 (2) AVAILABILITY.—Amounts appropriated pur24 suant to the authorization of appropriations under
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1 paragraph (1) are authorized to remain available

2 until expended.

3 Subtitle C—United States

4 International Trade Commission

5 SEC. 961. AUTHORIZATION OF APPROPRIATIONS.

6 (a) IN GENERAL.—Section 330(e)(2)(A) of the Tariff

7 Act of 1930 (19 U.S.C. 1330(e)(2)) is amended—

8 (1) in clause (i) to read as follows:

9 ‘‘(i) $51,400,000 for fiscal year 2002.’’; and

10 (2) in clause (ii) to read as follows:

11 ‘‘(ii) $53,400,000 for fiscal year 2003.’’.

12 (b) SUBMISSION OF OUT-YEAR BUDGET PROJEC13 TIONS.—Section 330(e) of the Tariff Act of 1930 (19 U.S.C.

14 1330(e)(2)) is amended by adding at the end the following:

15 ‘‘(4) By not later than the date on which the President

16 submits to Congress the budget of the United States Govern17 ment for a fiscal year, the Commission shall submit to the

18 Committee on Ways and Means of the House of Representa19 tives and the Committee on Finance of the Senate the pro20 jected amount of funds for the succeeding fiscal year that

21 will be necessary for the Commission to carry out its func22 tions.’’.
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1 Subtitle D—Other Trade Provisions

2 SEC. 971. INCREASE IN AGGREGATE VALUE OF ARTICLES

3 EXEMPT FROM DUTY ACQUIRED ABROAD BY

4 UNITED STATES RESIDENTS.

5 (a) IN GENERAL.—Subheading 9804.00.65 of the Har6 monized Tariff Schedule of the United States is amended

7 in the article description column by striking ‘‘$400’’ and

8 inserting ‘‘$800’’.

9 (b) EFFECTIVE DATE.—The amendment made by sub10 section (a) shall take effect 90 days after the date of enact11 ment of this Act.

12 SEC. 972. REGULATORY AUDIT PROCEDURES.

13 Section 509(b) of the Tariff Act of 1930 (19 U.S.C.

14 1509(b)) is amended by adding at the end the following:

15 ‘‘(6)(A) If during the course of any audit con16 cluded under this subsection, the Customs Service

17 identifies overpayments of duties or fees or over-dec18 larations of quantities or values that are within the

19 time period and scope of the audit that the Customs

20 Service has defined, then in calculating the loss of

21 revenue or monetary penalties under section 592, the

22 Customs Service shall treat the overpayments or over23 declarations on finally liquidated entries as an offset

24 to any underpayments or underdeclarations also

25 identified on finally liquidated entries if such over-
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1 payments or over-declarations were not made by the

2 person being audited for the purpose of violating any

3 provision of law.

4 ‘‘(B) Nothing in this paragraph shall be con5 strued to authorize a refund not otherwise authorized

6 under section 520.’’.

7 Subtitle E—Sense of Senate

8 SEC. 981. SENSE OF SENATE.

9 It is the sense of the Senate that fees collected for cer10 tain customs services (commonly referred to as ‘‘customs

11 user fees’’) provided for in section 13031 of the Consolidated

12 Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.

13 58c) may be used only for the operations and programs of

14 the United States Customs Service.

15 TITLE X—MISCELLANEOUS

16 PROVISIONS

17 SEC. 1001. COUNTRY OF ORIGIN LABELING OF FISH AND

18 SHELLFISH PRODUCTS.

19 (a) DEFINITIONS.—In this section:

20 (1) COVERED COMMODITY.—The term ‘‘covered

21 commodity’’ means—

22 (A) a perishable agricultural commodity;

23 and

24 (B) any fish or shellfish, and any fillet,

25 steak, nugget, or any other flesh from fish or
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1 shellfish, whether fresh, chilled, frozen, canned,

2 smoked, or otherwise preserved.

3 (2) FOOD SERVICE ESTABLISHMENT.—The term

4 ‘‘food service establishment’’ means a restaurant, cafe5 teria, lunch room, food stand, saloon, tavern, bar,

6 lounge, or other similar facility operated as an enter7 prise engaged in the business of selling food to the

8 public.

9 (3) PERISHABLE AGRICULTURAL COMMODITY;

10 RETAILER.—The terms ‘‘perishable agricultural com11 modity’’ and ‘‘retailer’’ have the meanings given the

12 terms in section 1(b) of the Perishable Agricultural

13 Commodities Act, 1930 (7 U.S.C. 499a(b)).

14 (4) SECRETARY.—The term ‘‘Secretary’’ means

15 the Secretary of Agriculture, acting through the Agri16 cultural Marketing Service.

17 (b) NOTICE OF COUNTRY OF ORIGIN.—

18 (1) REQUIREMENT.—Except as provided in

19 paragraph (3), a retailer of a covered commodity

20 shall inform consumers, at the final point of sale of

21 the covered commodity to consumers, of the country of

22 origin of the covered commodity.

23 (2) UNITED STATES COUNTRY OF ORIGIN.—A re24 tailer of a covered commodity may designate the cov25 ered commodity as having a United States country of
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1 origin only if the covered commodity is exclusively

2 harvested and processed in the United States, or in

3 the case of farm-raised fish and shellfish, is hatched,

4 raised, harvested, and processed in the United States.

5 (3) EXEMPTION FOR FOOD SERVICE ESTABLISH6 MENTS.—Paragraph (1) shall not apply to a covered

7 commodity if the covered commodity is prepared or

8 served in a food service establishment, and—

9 (A) offered for sale or sold at the food serv10 ice establishment in normal retail quantities; or

11 (B) served to consumers at the food service

12 establishment.

13 (c) METHOD OF NOTIFICATION.—

14 (1) IN GENERAL.—The information required by

15 subsection (b) may be provided to consumers by

16 means of a label, stamp, mark, placard, or other clear

17 and visible sign on the covered commodity or on the

18 package, display, holding unit, or bin containing the

19 covered commodity at the final point of sale to con20 sumers.

21 (2) LABELED COMMODITIES.—If the covered

22 commodity is already individually labeled for retail

23 sale regarding country of origin, the retailer shall not

24 be required to provide any additional information to

25 comply with this section.
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1 (d) AUDIT VERIFICATION SYSTEM.—The Secretary

2 may require that any person that prepares, stores, handles,

3 or distributes a covered commodity for retail sale maintain

4 a verifiable recordkeeping audit trail that will permit the

5 Secretary to ensure compliance with the regulations pro6 mulgated under subsection (g).

7 (e) INFORMATION.—Any person engaged in the busi8 ness of supplying a covered commodity to a retailer shall

9 provide information to the retailer indicating the country

10 of origin of the covered commodity.

11 (f) ENFORCEMENT.—

12 (1) IN GENERAL.—Each Federal agency having

13 jurisdiction over retailers of covered commodities

14 shall, at such time as the necessary regulations are

15 adopted under subsection (g), adopt measures in16 tended to ensure that the requirements of this section

17 are followed by affected retailers.

18 (2) VIOLATION.—A violation of subsection (b)

19 shall be treated as a violation under the Agricultural

20 Marketing Act of 1946 (7 U.S.C. 1621 et seq.).

21 (g) REGULATIONS.—

22 (1) IN GENERAL.—The Secretary may promul23 gate such regulations as are necessary to carry out

24 this section within 1 year after the date of enactment

25 of this Act.
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1 (2) PARTNERSHIPS WITH STATES.—In promul2 gating the regulations, the Secretary shall, to the

3 maximum extent practicable, enter into partnerships

4 with States that have the enforcement infrastructure

5 necessary to carry out this section.

6 (h) APPLICATION.—This section shall apply to the re7 tail sale of a covered commodity beginning on the date that

8 is 180 days after the date of enactment of this Act.

9 SEC. 1002. SUGAR POLICY.

10 (a) FINDINGS.—Congress finds that—

11 (1) the tariff-rate quotas imposed on imports of

12 sugar, syrups and sugar-containing products under

13 chapters 17, 18, 19, and 21 of the Harmonized Tariff

14 Schedule of the United States are an essential element

15 of United States sugar policy;

16 (2) circumvention of the tariff-rate quotas will,

17 if unchecked, make it impossible to achieve the objec18 tives of United States sugar policy;

19 (3) the tariff-rate quotas have been circumvented

20 frequently, defeating the purposes of United States

21 sugar policy and causing disruption to the United

22 States market for sweeteners, injury to domestic grow23 ers, refiners, and processors of sugar, and adversely

24 affecting legitimate exporters of sugar to the United

25 States;
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1 (4) it is essential to United States sugar policy

2 that the tariff-rate quotas be enforced and that decep3 tive practices be prevented, including the importation

4 of products with no commercial use and failure to

5 disclose all relevant information to the United States

6 Customs Service; and

7 (5) unless action is taken to prevent circumven8 tion, circumvention of the tariff-rate quotas will con9 tinue and will ultimately destroy United States sugar

10 policy.

11 (b) POLICY.—It is the policy of the United States to

12 maintain the integrity of the tariff-rate quotas on sugars,

13 syrups, and sugar-containing products by stopping cir14 cumvention as soon as it becomes apparent. It is also the

15 policy of the United States that products not used to cir16 cumvent the tariff-rate quotas, such as molasses used for

17 animal feed or for rum, not be affected by any action taken

18 pursuant to this Act.

19 (c) IDENTIFICATION OF IMPORTS.—

20 (1) IDENTIFICATION.—Not later than 30 days

21 after the date of enactment of this Act, and on a reg22 ular basis thereafter, the Secretary of Agriculture

23 shall—

24 (A) identify imports of articles that are cir25 cumventing tariff-rate quotas on sugars, syrups,
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1 or sugar-containing products imposed under

2 chapter 17, 18, 19, or 21 of the Harmonized Tar3 iff Schedule of the United States; and

4 (B) report to the President the articles

5 found to be circumventing the tariff-rate quotas.

6 (2) ACTION BY PRESIDENT.—Upon receiving the

7 report from the Secretary of Agriculture, the Presi8 dent shall, by proclamation, include any article iden9 tified by the Secretary in the appropriate tariff-rate

10 quota provision of the Harmonized Tariff Schedule.

Calendar No. 313

107TH CONGRESS

2D SESSION S. 1209

[Report No. 107–134]

A BILL

To amend the Trade Act of 1974 to consolidate

and improve the trade adjustment assistance programs, to provide community-based economic development assistance for trade-affected communities, and for other purposes.

FEBRUARY 4, 2002

Reported with an amendment