II

106TH CONGRESS

1ST SESSION S. 220

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

adjustment assistance and NAFTA transitional adjustment assistance

programs under that Act, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 19, 1999

Mr. MOYNIHAN introduced the following bill; which was read twice and

referred to the Committee on Finance

A BILL

To amend the Trade Act of 1974 to consolidate and improve

the trade adjustment assistance and NAFTA transitional

adjustment assistance programs under that Act, 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.

4 This Act may be cited as the ‘‘Trade Adjustment As5 sistance Improvements Act of 1999’’.

6 SEC. 2. AUTHORIZATION OF CONSOLIDATED TRADE AD7 JUSTMENT ASSISTANCE.

8 (a) AUTHORIZATION OF APPROPRIATIONS.—
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1 (1) IN GENERAL.—Section 245 of the Trade

2 Act of 1974 (19 U.S.C. 2317) is amended to read

3 as follows:

4 ‘‘SEC. 245. AUTHORIZATION OF APPROPRIATIONS.

5 ‘‘There are authorized to be appropriated to the De6 partment of Labor for each of the fiscal years 1999

7 through 2001 such sums as may be necessary to carry

8 out the purposes of this chapter.’’.

9 (2) TEMPORARY EXTENSION OF NAFTA ASSIST10 ANCE.—Section 250(d)(2) of such Act (19 U.S.C.

11 2331(d)(2)) is amended by striking ‘‘June 30, 1999,

12 shall not exceed $15,000,000’’ and inserting ‘‘Sep13 tember 30, 1999, shall not exceed $30,000,000’’.

14 (b) REPEAL OF NAFTA TRANSITIONAL ADJUST15 MENT ASSISTANCE PROGRAM.—

16 (1) IN GENERAL.—Subchapter D of chapter 2

17 of title II of such Act (19 U.S.C. 2331) is hereby

18 repealed.

19 (2) CONFORMING AMENDMENTS.—(A) Section

20 249A of such Act (19 U.S.C. 2322) is hereby re21 pealed.

22 (B) The table of contents of such Act is

23 amended—

24 (i) by striking the item relating to section

25 249A; and
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1 (ii) by striking the items relating to sub2 chapter D of chapter 2 of title II.

3 (c) TERMINATION.—Section 285 of such Act (19

4 U.S.C. 2271 note) is amended—

5 (1) by amending subsection (c)(1) to read as

6 follows:

7 ‘‘(c)(1) Except as provided in paragraph (2), no as8 sistance, vouchers, allowances, or other payments may be

9 provided under chapter 2, and no technical assistance may

10 be provided under chapter 3, after September 30, 2001.’’;

11 and

12 (2) in subsection (c)(2), by striking ‘‘June 30,

13 1999,’’ and inserting ‘‘September 30, 1999,’’.

14 (d) EFFECTIVE DATE.—

15 (1) SUBSECTIONS (a) AND (c).—The amend16 ments made by subsections (a) and (c) take effect

17 on—

18 (A) July 1, 1999; or

19 (B) the date of enactment of this Act,

20 whichever is earlier.

21 (2) SUBSECTION (b).—The amendments made

22 by subsection (b) take effect on—

23 (A) October 1, 1999; or

24 (B) 90 days after the date of enactment of

25 this Act,
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1 whichever is later.

2 SEC. 3. FILING OF PETITIONS AND PROVISION OF RAPID

3 RESPONSE ASSISTANCE; EXPEDITED REVIEW

4 OF PETITIONS BY SECRETARY OF LABOR.

5 (a) FILING OF PETITIONS AND PROVISION OF RAPID

6 RESPONSE ASSISTANCE.—Section 221(a) of the Trade

7 Act of 1974 (19 U.S.C. 2271(a)) is amended to read as

8 follows:

9 ‘‘(a)(1) A petition for certification of eligibility to

10 apply for adjustment assistance for a group of workers

11 under this chapter may be filed with the Governor of the

12 State in which such workers’ firm or subdivision is located

13 by any of the following:

14 ‘‘(A) The group of workers (including workers

15 in an agricultural firm or subdivision of any agricul16 tural firm).

17 ‘‘(B) The certified or recognized union or other

18 duly authorized representative of such workers.

19 ‘‘(C) Employers of such workers, one-stop oper20 ators or one-stop partners (as defined in section 101

21 of the Workforce Investment Act of 1998 (29 U.S.C.

22 2801)), or State employment agencies, on behalf of

23 such workers.

24 ‘‘(2) Upon receipt of a petition filed under paragraph

25 (1), the Governor shall—
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1 ‘‘(A) immediately transmit the petition to the

2 Secretary of Labor (hereinafter in this chapter re3 ferred to as the ‘Secretary’);

4 ‘‘(B) ensure that rapid response assistance and

5 basic readjustment services authorized under other

6 Federal laws are made available to the workers cov7 ered by the petition to the extent authorized under

8 such laws; and

9 ‘‘(C) assist the Secretary in the review of the

10 petition by verifying such information and providing

11 such other assistance as the Secretary may request.

12 ‘‘(3) Upon receipt of the petition, the Secretary shall

13 promptly publish notice in the Federal Register that the

14 Secretary has received the petition and initiated an inves15 tigation.’’.

16 (b) EXPEDITED REVIEW OF PETITIONS BY SEC17 RETARY OF LABOR.—Section 223(a) of such Act (19

18 U.S.C. 2273(a)) is amended in the first sentence by strik19 ing ‘‘60 days’’ and inserting ‘‘40 days’’.

20 SEC. 4. ADDITION OF SHIFT IN PRODUCTION AS BASIS FOR

21 ELIGIBILITY FOR TRADE ADJUSTMENT AS22 SISTANCE.

23 Section 222(a) of the Trade Act of 1974 (19 U.S.C.

24 2272(a)) is amended to read as follows:
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1 ‘‘(a) A group of workers (including workers in any

2 agricultural firm or subdivision of an agricultural firm)

3 shall be certified by the Secretary as eligible to apply for

4 adjustment assistance under this chapter pursuant to a

5 petition filed under section 221 if the Secretary deter6 mines that—

7 ‘‘(1) a significant number or proportion of the

8 workers in such workers’ firm or an appropriate sub9 division of the firm have become totally or partially

10 separated, or are threatened to become totally or

11 partially separated; and

12 ‘‘(2)(A)(i) the sales or production, or both, of

13 such firm or subdivision have decreased absolutely;

14 ‘‘(ii) imports of articles like or directly competi15 tive with articles produced by such firm or subdivi16 sion have increased; and

17 ‘‘(iii) the increase in imports described in clause

18 (ii) contributed importantly to such workers’ separa19 tion or threat of separation and to the decline in the

20 sales or production of such firm or subdivision; or

21 ‘‘(B) there has been a shift in production by

22 such workers’ firm or subdivision to a foreign coun23 try of articles like or directly competitive with arti24 cles which are produced by such firm or subdivi25 sion.’’.
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1 SEC. 5. INFORMATION ON CERTAIN CERTIFICATIONS.

2 Section 223 of the Trade Act of 1974 (19 U.S.C.

3 2273) is amended by adding at the end the following sub4 section:

5 ‘‘(e) The Secretary shall collect and maintain

6 information—

7 ‘‘(1) identifying the countries to which firms

8 have shifted production resulting in certifications

9 under section 222(a)(2)(B), including the number of

10 such certifications relating to each country; and

11 ‘‘(2) to the extent feasible, identifying the coun12 tries from which imports of articles have resulted in

13 certifications under section 222(a)(2)(A), including

14 the number of such certifications relating to each

15 country.’’.

16 SEC. 6. ENROLLMENT IN TRAINING REQUIREMENT.

17 Section 231(a)(5)(A) of the Trade Act of 1974 (19

18 U.S.C. 2291(a)(5)(A)) is amended—

19 (1) by inserting ‘‘(i)’’ after ‘‘(A)’’;

20 (2) by adding ‘‘and’’ after the comma at the

21 end; and

22 (3) by adding at the end the following:

23 ‘‘(ii) the enrollment required under clause

24 (i) occurs no later than the latest of—

25 ‘‘(I) the last day of the 16th week

26 after the worker’s most recent total sepa-
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1 ration from adversely affected employment

2 which meets the requirements of para3 graphs (1) and (2);

4 ‘‘(II) the last day of the 8th week

5 after the week in which the Secretary

6 issues a certification covering the worker;

7 or

8 ‘‘(III) 45 days after the later of the

9 dates specified in subclause (I) or (II), if

10 the Secretary determines there are extenu11 ating circumstances that justify an exten12 sion in the enrollment period;’’.

13 SEC. 7. WAIVERS OF TRAINING REQUIREMENTS.

14 (a) IN GENERAL.—Section 231(c) of the Trade Act

15 of 1974 (19 U.S.C. 2291(c)) is amended to read as fol16 lows:

17 ‘‘(c)(1) The Secretary may issue a written statement

18 to a worker waiving the enrollment in the training require19 ment described in subsection (a)(5)(A) if the Secretary de20 termines that such training requirement is not feasible or

21 appropriate for the worker, as indicated by 1 or more of

22 the following:

23 ‘‘(A) The worker has been notified that the

24 worker will be recalled by the firm from which the

25 qualifying separation occurred.
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1 ‘‘(B) The worker has marketable skills as deter2 mined pursuant to an assessment of the worker,

3 which may include the profiling system under section

4 303(j) of the Social Security Act (42 U.S.C. 503(j)),

5 carried out in accordance with guidelines issued by

6 the Secretary.

7 ‘‘(C) The worker is within 2 years of meeting

8 all requirements for entitlement to old-age insurance

9 benefits under title II of the Social Security Act (42

10 U.S.C. 401 et seq.) (except for application therefor).

11 ‘‘(D) The worker is unable to participate in

12 training due to the health of the worker, except that

13 a waiver under this subparagraph shall not be con14 strued to exempt a worker from requirements relat15 ing to the availability for work, active search for

16 work, or refusal to accept work under Federal or

17 State unemployment compensation laws.

18 ‘‘(E) The first available enrollment date for the

19 approved training of the worker is within 45 days

20 after the date of the determination made under this

21 paragraph, or, if later, there are extenuating cir22 cumstances for the delay in enrollment, as deter23 mined pursuant to guidelines issued by the Sec24 retary.
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1 ‘‘(F) There are insufficient funds available for

2 training under this chapter, taking into account the

3 limitation under section 236(a)(2)(A).

4 ‘‘(G) The duration of training appropriate for

5 the individual to obtain suitable employment exceeds

6 the individual’s maximum entitlement to basic and

7 additional trade readjustment allowances and, in ad8 dition, financial support available through other

9 Federal or State programs, including title III of the

10 Job Training Partnership Act (29 U.S.C. 1651 et

11 seq.) or chapter 5 of subtitle B of title I of the

12 Workforce Investment Act of 1998, that would en13 able the individual to complete a suitable training

14 program cannot be assured.

15 ‘‘(2) The Secretary shall specify the duration of the

16 waiver under paragraph (1) and shall periodically review

17 the waiver to determine whether the basis for issuing the

18 waiver remains applicable. If at any time the Secretary

19 determines such basis is no longer applicable to the work20 er, the Secretary shall revoke the waiver.

21 ‘‘(3) Pursuant to the agreement under section 239,

22 the Secretary may authorize the State or State agency to

23 carry out activities described in paragraph (1) (except for

24 the determination under subparagraphs (F) and (G) of

25 paragraph (1)). Such agreement shall include a require-
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1 ment that the State or State agency submit to the Sec2 retary the written statements provided pursuant to para3 graph (1) and a statement of the reasons for the waiver.

4 ‘‘(4) The Secretary shall submit an annual report to

5 the Committee on Finance of the Senate and the Commit6 tee on Ways and Means of the House of Representatives

7 identifying the number of workers who received waivers

8 and the average duration of such waivers issued under this

9 subsection during the preceding year.’’.

10 (b) CONFORMING AMENDMENT.—Section

11 231(a)(5)(C) of such Act (19 U.S.C. 2291(a)(5)(C)) is

12 amended by striking ‘‘certified’’.

13 SEC. 8. PROVISION OF TRADE READJUSTMENT ALLOW14 ANCES DURING BREAKS IN TRAINING.

15 Section 233(f) of the Trade Act of 1974 (19 U.S.C.

16 2293(f)) is amended in the matter preceding paragraph

17 (1) by striking ‘‘14 days’’ and inserting ‘‘30 days’’.

18 SEC. 9. INCREASE IN ANNUAL TOTAL AMOUNT OF PAY19 MENTS FOR TRAINING.

20 Section 236(a)(2)(A) of the Trade Act of 1974 (19

21 U.S.C. 2296(a)(2)(A)) is amended by striking

22 ‘‘$80,000,000’’ and all that follows through $70,000,000

23 and inserting ‘‘$150,000,000’’.
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1 SEC. 10. ELIMINATION OF QUARTERLY REPORT.

2 (a) IN GENERAL.—Section 236(d) of the Trade Act

3 of 1974 (19 U.S.C. 2296(d)) is amended by striking the

4 last sentence.

5 (b) EFFECTIVE DATE.—The amendment made by

6 this section takes effect on October 1, 1999.

7 SEC. 11. COORDINATION WITH ONE-STOP DELIVERY SYS8 TEMS, THE JOB TRAINING PARTNERSHIP

9 ACT, AND THE WORKFORCE INVESTMENT

10 ACT OF 1998.

11 (a) COORDINATION WITH ONE-STOP DELIVERY SYS12 TEMS.—Section 235 of the Trade Act of 1974 (19 U.S.C.

13 2295) is amended by inserting ‘‘, including the services

14 provided through one-stop delivery systems described in

15 section 134(c) of the Workforce Investment Act of 1998

16 (19 U.S.C. 2864(c))’’ before the period at the end of the

17 first sentence.

18 (b) COORDINATION WITH JOB TRAINING PARTNER19 SHIP ACT AND WORKFORCE INVESTMENT ACT OF

20 1998.—Section 239(e) such Act (19 U.S.C. 2311(e)) is

21 amended—

22 (1) in the first sentence, by striking ‘‘or title I

23 of the Workforce Investment Act of 1998’’ and in24 serting ‘‘or under the provisions relating to dis25 located worker employment and training activities

26 set forth in chapter 5 of subtitle B of title I of the
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1 Workforce Investment Act of 1998 (29 U.S.C. 2861

2 et seq.), as the case may be,’’; and

3 (2) by inserting after the first sentence the fol4 lowing: ‘‘Such coordination shall include use of com5 mon reporting systems and elements, including com6 mon elements relating to participant data and per7 formance outcomes (including employment, retention

8 of employment, and wages).’’.

9 SEC. 12. SUPPORTIVE SERVICES.

10 (a) IN GENERAL.—Part II of subchapter B of chap11 ter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2295

12 et seq.) is amended by adding at the end the following:

13 ‘‘SEC. 238A. SUPPORTIVE SERVICES.

14 ‘‘(a) APPLICATION.—Any adversely affected worker

15 covered by a certification under subchapter A of this chap16 ter may file an application with the Secretary for the pro17 vision of supportive services, including transportation,

18 child and dependent care, and other similar services.

19 ‘‘(b) CONDITIONS.—The Secretary may approve an

20 application filed under subsection (a) and provide support21 ive services to an adversely affected worker only if the Sec22 retary determines that—

23 ‘‘(1) the provision of such services is necessary

24 to enable the worker to participate in or complete

25 training; and
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1 ‘‘(2) the provision of such services is consistent

2 with the provision of supportive services to partici3 pants under the program of employment and train4 ing assistance for dislocated workers carried out

5 under title III of the Job Training Partnership Act

6 (29 U.S.C. 1651 et seq.), as in effect on the date

7 of enactment of the Trade Adjustment Assistance

8 Reform Act of 1999, or under the provisions relating

9 to dislocated worker employment and training activi10 ties set forth in chapter 5 of subtitle B of title I of

11 the Workforce Investment Act of 1998 (29 U.S.C.

12 2861 et seq.), as the case may be.’’.

13 (b) CONFORMING AMENDMENT.—The table of con14 tents of such Act is amended by inserting after the item

15 relating to section 238 the following:

‘‘Sec. 238A. Supportive services.’’.

16 SEC. 13. ADDITIONAL CONFORMING AMENDMENTS.

17 (a) SECTION 225.—Section 225(b) of the Trade Act

18 of 1974 (19 U.S.C. 2275(b)) is amended in each of para19 graphs (1) and (2) by striking ‘‘or subchapter D’’.

20 (b) SECTION 240.—Section 240(a) of such Act (19

21 U.S.C. 2312(a)) is amended by striking ‘‘subchapter B

22 of’’.
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1 SEC. 14. AVAILABILITY OF CONTINGENCY FUNDS.

2 (a) IN GENERAL.—Section 245 of the Trade Act of

3 1974 (19 U.S.C. 2317), as amended by section 2, is

4 amended—

5 (1) by striking ‘‘There are authorized’’ and in6 serting ‘‘(a) IN GENERAL.—There are authorized’’;

7 and

8 (2) by adding at the end the following:

9 ‘‘(b) CONTINGENCY FUNDS.—Subject to the limita10 tion contained in section 236(a)(2), if in any fiscal year

11 the funds available to carry out the programs under this

12 chapter are exhausted, there shall be made available from

13 funds in the Treasury not otherwise appropriated amounts

14 sufficient to carry out such programs for the remainder

15 of the fiscal year.’’.

16 (b) EFFECTIVE DATE.—The amendments made by

17 this section take effect on—

18 (1) July 1, 1999; or

19 (2) the date of enactment of this Act,

20 whichever is earlier.

21 SEC. 15. REAUTHORIZATION OF ADJUSTMENT ASSISTANCE

22 FOR FIRMS.

23 (a) IN GENERAL.—Section 256(b) of the Trade Act

24 of 1974 (19 U.S.C. 2346(b)) is amended by striking ‘‘for

25 the period beginning October 1, 1998, and ending June
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1 30, 1999’’ and inserting ‘‘for each of fiscal years 1999

2 through 2001’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 this section takes effect on—

5 (1) July 1, 1999; or

6 (2) the date of enactment of this Act,

7 whichever is earlier.

8 SEC. 16. EFFECTIVE DATE; TRANSITION PROVISION.

9 (a) EFFECTIVE DATE.—Except as otherwise provided

10 in this Act, this Act and the amendments made by this

11 Act take effect on—

12 (1) October 1, 1999; or

13 (2) 90 days after the date of enactment of this

14 Act,

15 whichever is later.

16 (b) TRANSITION.—The Secretary of Labor may pro17 mulgate such rules as the Secretary determines to be nec18 essary to provide for the implementation of the amend19 ments made by this Act.

Æ