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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2531 Introduced in Senate (IS)]

108th CONGRESS
  2d Session
                                S. 2531

To assist displaced American workers during a jobless recovery, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 16, 2004

   Mr. Wyden introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To assist displaced American workers during a jobless recovery, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keeping American Jobs at Home Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Senate finds the following:
            (1) The unusually prolonged period in which there has been 
        negative job growth has caused an unprecedented number of 
        people to refrain from actively looking for work and, 
        therefore, to be excluded from the unemployment measurement, 
        effectively creating a ``missing'' labor force. If the 
        unemployment rate in February 2004 took into account this 
        missing labor force, the unemployment rate would have been 7.4 
        percent or 1.8 percent greater than the official rate of 5.6 
        percent.
            (2) Newly released unemployment figures show that the trend 
        toward growing long-term unemployment continued last year, the 
        second year after the recession ended.
            (3) An analysis of long-term unemployment from 2000 to 2003 
        shows that the number of people without work for 6 months or 
        more has risen at the extraordinarily high rate of 198.2 
        percent over this period, from just over 649,000 in 2000 to 
        nearly 2,000,000 in 2003.
            (4) According to the Bureau of Labor Statistics, in 2003, 
        22.1 percent of all unemployed workers had been out of work for 
        more than 6 months, an increase from 18.3 percent in 2002. This 
        proportion is higher than at comparable points in the recovery 
        periods of the 4 most recent recessions, and is the highest 
        rate since 1983.
            (5) In 2005, 588,000 American jobs are projected to be 
        moved overseas. In 2010, that number is expected to grow to 
        1,600,000 and by 2015, 3,300,000 American jobs will be moved 
        overseas.
            (6) In February 2004, the Chairman of the Council of 
        Economic Advisors, called offshoring ``just a new way of doing 
        international trade. More things are tradable than were 
        tradable in the past, and that's a good thing. When a good or 
        service is produced at lower cost in another country, it makes 
        sense to import it rather than to produce it domestically.''.
            (7) Immediate action is necessary to encourage United 
        States companies to keep American jobs at home, to assist 
        displaced American workers in finding new, family wage jobs, 
        and to assure that the current American workforce has the 
        skills to compete and win in the global economy.
    (b) Purpose.--The purpose of this Act is to assist displaced 
American workers during a jobless recovery by--
            (1) ensuring displaced workers in the software, information 
        technology, and services sectors have access to the same trade 
        adjustment assistance and health care tax credits as displaced 
        manufacturing workers;
            (2) providing wage insurance for qualifying displaced 
        workers upon reemployment (to make up part of the difference 
        between a new, lower salary and a previous, higher salary); and
            (3) providing a legal safe harbor for United States 
        businesses that choose to keep American jobs at home.

           TITLE I--ASSISTANCE FOR DISPLACED AMERICAN WORKERS

SEC. 101. ELIMINATION OF TAX SUBSIDIES FOR OUTSOURCING OF AMERICAN 
              JOBS.

    (a) In General.--Part IX of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items not deductible) is 
amended by adding at the end the following new section:

``SEC. 280I. ELIMINATION OF TAX SUBSIDIES FOR OUTSOURCING OF AMERICAN 
              JOBS.

    ``(a) In General.--No deduction or credit shall be allowed under 
this chapter with respect to any applicable outsourcing item.
    ``(b) Applicable Outsourcing Item.--For purposes of this section--
            ``(1) In general.--The term `applicable outsourcing item' 
        means any item of expense (including any allowance for 
        depreciation or amortization) or loss arising in connection 
        with 1 or more transactions which--
                    ``(A) transfer the production of goods (or the 
                performance of services) from within the United States 
                to outside the United States, and
                    ``(B) result in the replacement of workers who 
                reside in the United States with other workers who 
                reside outside of the United States.
            ``(2) Certain items included.--The term `applicable 
        outsourcing item' shall include with respect to any transaction 
        described in paragraph (1)--
                    ``(A) any amount paid or incurred in training the 
                replacement workers described in paragraph (1)(B),
                    ``(B) any amount paid or incurred in transporting 
                tangible property outside the United States in 
                connection with the transfer described in paragraph 
                (1)(A),
                    ``(C) any expense or loss incurred in connection 
                with the sale, abandonment, or other disposition of any 
                property or facility located within the United States 
                and used in the production of goods (or the performance 
                of services) before such transfer,
                    ``(D) expenses paid or incurred for travel in 
                connection with the planning and carrying out of any 
                such transaction,
                    ``(E) any general or administrative expenses 
                properly allocable to any such transaction,
                    ``(F) any amount paid or incurred in connection 
                with any such transaction for the acquisition of any 
                property or facility located outside the United States, 
                and
                    ``(G) any other item specified by the Secretary.
            ``(3) Certain items not included.--The term `applicable 
        outsourcing item' shall not include any expenses directly 
        allocable to the sale of goods and services without the United 
        States.
    ``(c) Regulations.--The Secretary shall prescribe such regulations 
as are necessary or appropriate to carry out the provisions of this 
section. The Secretary shall prescribe initial regulations not later 
than 180 days after the date of enactment of this section.''.
    (b) Conforming Amendment.--The table of sections for part IX of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

``Sec. 280I. Elimination of tax subsidies for outsourcing of American 
                            jobs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transactions occurring on or after the date of enactment of 
this Act.

SEC. 102. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICES SECTOR.

    (a) Adjustment Assistance for Workers.--Section 221(a)(1)(A) of the 
Trade Act of 1974 (19 U.S.C. 2271(a)(1)(A)) is amended by striking 
``firm)'' and inserting ``firm, and workers in a service sector firm or 
subdivision of a service sector firm or public agency)''.
    (b) Group Eligibility Requirements.--Section 222 of the Trade Act 
of 1974 (19 U.S.C. 2272) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``agricultural firm)'' and inserting 
                ``agricultural firm, and workers in a service sector 
                firm or subdivision of a service sector firm or public 
                agency)'';
                    (B) in paragraph (1), by inserting ``or public 
                agency'' after ``of the firm''; and
                    (C) in paragraph (2)--
                            (i) in subparagraph (A)(ii), by striking 
                        ``like or directly competitive with articles 
                        produced'' and inserting ``or services like or 
                        directly competitive with articles produced or 
                        services provided''; and
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B)(i) there has been a shift, by such workers' 
                firm, subdivision, or public agency to a foreign 
                country, of production of articles, or in provision of 
                services, like or directly competitive with articles 
                which are produced, or services which are provided, by 
                such firm, subdivision, or public agency; or
                    ``(ii) such workers' firm, subdivision, or public 
                agency has obtained or is likely to obtain such 
                services from a foreign country.'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``agricultural firm)'' and inserting 
                ``agricultural firm, and workers in a service sector 
                firm or subdivision of a service sector firm or public 
                agency)'';
                    (B) in paragraph (2), by inserting ``or service'' 
                after ``related to the article''; and
                    (C) in paragraph (3)(A), by inserting ``or 
                services'' after ``component parts'';
            (3) in subsection (c)--
                    (A) in paragraph (3)--
                            (i) by inserting ``or services'' after 
                        ``value-added production processes'';
                            (ii) by striking ``or finishing'' and 
                        inserting ``, finishing, or testing'';
                            (iii) by inserting ``or services'' after 
                        ``for articles''; and
                            (iv) by inserting ``(or subdivision)'' 
                        after ``such other firm''; and
                    (B) in paragraph (4)--
                            (i) by striking ``for articles'' and 
                        inserting ``, or services, used in the 
                        production of articles or in the provision of 
                        services''; and
                            (ii) by inserting ``(or subdivision)'' 
                        after ``such other firm''; and
            (4) by adding at the end the following new subsection:
    ``(d) Basis for Secretary's Determinations.--
            ``(1) Increased imports.--For purposes of subsection 
        (a)(2)(A)(ii), the Secretary may determine that increased 
        imports of like or directly competitive articles or services 
        exist if the workers' firm or subdivision or customers of the 
        workers' firm or subdivision accounting for not less than 20 
        percent of the sales of the workers' firm or subdivision 
        certify to the Secretary that they are obtaining such articles 
        or services from a foreign country.
            ``(2) Obtaining services abroad.--For purposes of 
        subsection (a)(2)(B)(ii), the Secretary may determine that the 
        workers' firm, subdivision, or public agency has obtained or is 
        likely to obtain like or directly competitive services from a 
        firm in a foreign country based on a certification thereof from 
        the workers' firm, subdivision, or public agency.
            ``(3) Authority of the secretary.--The Secretary may obtain 
        the certifications under paragraphs (1) and (2) through 
        questionnaires or in such other manner as the Secretary 
        determines is appropriate.''.
    (c) Training.--Section 236(a)(2)(A) of the Trade Act of 1974 (19 
U.S.C. 2296(a)(2)(A)) is amended by striking ``$220,000,000'' and 
inserting ``$440,000,000''.
    (d) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C. 
2319) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``or public agency'' after ``of a 
                firm''; and
                    (B) by inserting ``or public agency'' after ``or 
                subdivision'';
            (2) in paragraph (2)(B), by inserting ``or public agency'' 
        after ``the firm'';
            (3) by redesignating paragraphs (8) through (17) as 
        paragraphs (9) through (18), respectively; and
            (4) by inserting after paragraph (6) the following:
            ``(7) The term `public agency' means a department or agency 
        of a State or local government or of the Federal Government.
            ``(8) The term `service sector firm' means an entity 
        engaged in the business of providing services.''.
    (e) Technical Amendment.--Section 245(a) of the Trade Act of 1974 
(19 U.S.C. 2317(a)) is amended by striking ``, other than subchapter 
D''.

SEC. 103. WAGE INSURANCE FOR QUALIFYING DISPLACED WORKERS UPON 
              REEMPLOYMENT.

    (a) In General.--Section 246 of the Trade Act of 1974 (19 U.S.C. 
2318) is amended to read as follows:

``SEC. 246. WAGE INSURANCE FOR DISPLACED WORKERS.

    ``(a) In General.--
            ``(1) Establishment.--The Secretary shall establish a wage 
        insurance program for displaced workers that provides the 
        benefits described in paragraph (2).
            ``(2) Benefits.
                    ``(A) Payments.--A State shall use the funds 
                provided to the State under section 241 to pay, for a 
                period not to exceed 2 years, to a worker described in 
                paragraph (3)(B), 50 percent of the difference 
                between--
                            ``(i) the wages received by the worker from 
                        reemployment; and
                            ``(ii) the wages received by the worker at 
                        the time of separation.
                    ``(B) Health insurance.--A worker described in 
                paragraph (3)(B) participating in the program 
                established under paragraph (1) is eligible to receive, 
                for a period not to exceed 2 years, a credit for health 
                insurance costs under section 35 of the Internal 
                Revenue Code of 1986, as added by section 201 of the 
                Trade Act of 2002.
            ``(3) Eligibility.--
                    ``(A) Firm eligibility.--
                            ``(i) In general.--The Secretary shall 
                        provide the opportunity for a group of workers 
                        on whose behalf a petition is filed under 
                        section 221 to request that the group of 
                        workers be certified for the wage insurance 
                        program under this section at the time the 
                        petition is filed.
                            ``(ii) Criteria.--In determining whether to 
                        certify a group of workers as eligible for the 
                        wage insurance program, the Secretary shall 
                        consider the following criteria:
                                    ``(I) Whether the workers in the 
                                workers' firm possess skills that are 
                                not easily transferable.
                                    ``(II) The competitive conditions 
                                within the workers' industry.
                            ``(iii) Deadline.--The Secretary shall 
                        determine whether the workers in the group are 
                        eligible for the wage insurance program by the 
                        date specified in section 223(a).
                    ``(B) Individual eligibility.--A worker in the 
                group that the Secretary has certified as eligible for 
                the wage insurance program may elect to receive 
                benefits under the wage insurance program if the 
                worker--
                            ``(i) is covered by a certification under 
                        subchapter A of this chapter;
                            ``(ii) obtains reemployment not more than 
                        26 weeks after the date of separation from the 
                        adversely affected employment; and
                            ``(iii) earns not more than $50,000 a year 
                        in wages from reemployment;
                            ``(iv) is employed on a full-time basis as 
                        defined by State law in the State in which the 
                        worker is employed; and
                            ``(v) does not return to the employment 
                        from which the worker was separated.
            ``(4) Total amount of payments.--The payments described in 
        paragraph (2)(A) made to a worker may not exceed $10,000 per 
        worker during the 2-year eligibility period.
            ``(5) Limitation on other benefits.--Except as provided in 
        section 238(a)(2)(B), if a worker is receiving payments 
        pursuant to the program established under paragraph (1), the 
        worker shall not be eligible to receive any other benefits 
        under this title.
    ``(b) Termination.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        payments may be made by a State under the program established 
        under subsection (a)(1) after the date that is 5 years after 
        the date on which such program is implemented by the State.
            ``(2) Exception.--Notwithstanding paragraph (1), a worker 
        receiving payments under the program established under 
        subsection (a)(1) on the termination date described in 
        paragraph (1) shall continue to receive such payments provided 
        that the worker meets the criteria described in subsection 
        (a)(3)(B).''.
    (b) Conforming Amendment.--The table of contents for title II of 
the Trade Act of 1974 is amended by striking the item relating to 
section 246 and inserting the following:

        ``Sec. 246. Wage insurance for displaced workers.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to workers certified as eligible for adjustment assistance under 
chapter 2 of title II of the Trade Act of 1974 on or after the date of 
enactment of this Act.

SEC. 104. BUSINESS JUDGMENT DEFENSE FOR NON-OUTSOURCING.

    Notwithstanding any other provision of law, a determination by the 
officers or directors of a corporation that it is in the best interest 
of the corporation to keep jobs within the United States and to not 
locate the domicile of the corporation outside of the United States, or 
move or carry out production or other business activities of the 
corporation or any portion thereof, outside of the United States, shall 
be considered in any action brought against the corporation based on 
such determination by the court of competent jurisdiction to be a 
matter of business judgment, and such officers or directors may not be 
found to have violated their fiduciary duty to the corporation in any 
such action, based on that determination.

TITLE II--IMPROVEMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE 
                              INDIVIDUALS

SEC. 201. EXPEDITED REFUND OF CREDIT FOR PRORATED FIRST MONTHLY PREMIUM 
              AND SUBSEQUENT MONTHLY PREMIUMS PAID PRIOR TO 
              CERTIFICATION OF ELIGIBILITY FOR THE CREDIT.

    Section 7527 of the Internal Revenue Code of 1986 (relating to 
advance payment of credit for health insurance costs of eligible 
individuals) is amended by adding at the end the following:
    ``(e) Expedited Payment of Premiums Paid Prior To Issuance of 
Certificate.--The program established under subsection (a) shall 
provide for payment to a certified individual of an amount equal to the 
percentage specified in section 35(a) of the premiums paid by such 
individual for coverage of the taxpayer and qualifying family members 
under qualified health insurance for eligible coverage months (as 
defined in section 35(b)) occurring prior to the issuance of a 
qualified health insurance costs credit eligibility certificate upon 
receipt by the Secretary of evidence of such payment by the certified 
individual.''.

SEC. 202. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING 
              WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE.

    (a) ERISA Amendment.--Section 701(c)(2) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding 
at the end the following:
                    ``(C) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date the individual is certified by the 
                        Secretary (or by any person or entity 
                        designated by the Secretary) as being eligible 
                        for a qualified health insurance costs credit 
                        eligibility certificate for purposes of section 
                        7527 of the Internal Revenue Code of 1986 shall 
                        not be taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 605(b)(4)(C).''.
    (b) PHSA Amendment.--Section 2701(c)(2) of the Public Health 
Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the 
following:
                    ``(C) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date the individual is certified by the 
                        Secretary (or by any person or entity 
                        designated by the Secretary) as being eligible 
                        for a qualified health insurance costs credit 
                        eligibility certificate for purposes of section 
                        7527 of the Internal Revenue Code of 1986 shall 
                        not be taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 2205(b)(4)(C).''.
    (c) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code 
of 1986 (relating to not counting periods before significant breaks in 
creditable coverage) is amended by adding at the end the following:
                    ``(D) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date the individual is certified by the 
                        Secretary of Labor (or by any person or entity 
                        designated by the Secretary of Labor) as being 
                        eligible for a qualified health insurance costs 
                        credit eligibility certificate for purposes of 
                        section 7527 shall not be taken into account in 
                        determining the continuous period under 
                        subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 4980B(f)(5)(C)(iv).''.

SEC. 203. CLARIFICATION OF ELIGIBILITY OF SPOUSE OF CERTAIN INDIVIDUALS 
              ENTITLED TO MEDICARE.

    (a) In General.--Subsection (b) of section 35 of the Internal 
Revenue Code of 1986 (defining eligible coverage month) is amended by 
adding at the end the following:
            ``(3) Special rule for spouse of individual entitled to 
        medicare.--Any month which would be an eligible coverage month 
        with respect to a taxpayer (determined without regard to 
        subsection (f)(2)(A)) shall be an eligible coverage month for 
        any spouse of such taxpayer.''.
    (b) Conforming Amendment.--Section 173(f)(5)(A)(i) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)(5)(A)(i)) is amended by 
inserting ``(including with respect to any month for which the eligible 
individual would have been treated as such but for the application of 
paragraph (7)(B)(i))'' before the comma.

SEC. 204. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.

    (a) In General.--Section 35(a) of the Internal Revenue Code of 1986 
(relating to credit for health insurance costs of eligible individuals) 
is amended by striking ``65'' and inserting ``75''.
    (b) Conforming Amendment.--Section 7527(b) of such Code (relating 
to advance payment of credit for health insurance costs of eligible 
individuals) is amended by striking ``65'' and inserting ``75''.
    (c) Effective Date.--The amendments made by this section apply to 
taxable years beginning after December 31, 2004.

SEC. 205. EXTENSION OF NATIONAL EMERGENCY GRANTS TO FACILITATE 
              ESTABLISHMENT OF GROUP COVERAGE OPTION AND TO PROVIDE 
              INTERIM HEALTH COVERAGE FOR ELIGIBLE INDIVIDUALS IN ORDER 
              TO QUALIFY FOR GUARANTEED ISSUE AND OTHER CONSUMER 
              PROTECTIONS; CLARIFICATION OF REQUIREMENT FOR GROUP 
              COVERAGE OPTION.

    (a) In General.--Section 173(f) of the Workforce Investment Act of 
1998 (29 U.S.C. 2918(f)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Use of funds.--
                    ``(A) Health insurance coverage for eligible 
                individuals in order to obtain qualified health 
                insurance that has guaranteed issue and other consumer 
                protections.--Funds made available to a State or entity 
                under paragraph (4)(A) of subsection (a) shall be used 
                to provide an eligible individual described in 
                paragraph (4)(C) and such individual's qualifying 
                family members with health insurance coverage for the 
                3-month period that immediately precedes the first 
                eligible coverage month (as defined in section 35(b) of 
                the Internal Revenue Code of 1986) in which such 
                eligible individual and such individual's qualifying 
                family members are covered by qualified health 
                insurance that meets the requirements described in 
                clauses (i) through (iv) of section 35(e)(2)(A) of the 
                Internal Revenue Code of 1986 (or such longer minimum 
                period as is necessary in order for such eligible 
                individual and such individual's qualifying family 
                members to be covered by qualified health insurance 
                that meets such requirements).
                    ``(B) Additional uses.--Funds made available to a 
                State or entity under paragraph (4)(A) of subsection 
                (a) may be used by the State or entity for the 
                following:
                            ``(i) Health insurance coverage.--To assist 
                        an eligible individual and such individual's 
                        qualifying family members in enrolling in 
                        health insurance coverage and qualified health 
                        insurance.
                            ``(ii) Administrative expenses and start-up 
                        expenses to establish group coverage options 
                        for qualified health insurance.--To pay the 
                        administrative expenses related to the 
                        enrollment of eligible individuals and such 
                        individuals' qualifying family members in 
                        health insurance coverage and qualified health 
                        insurance, including--
                                    ``(I) eligibility verification 
                                activities;
                                    ``(II) the notification of eligible 
                                individuals of available health 
                                insurance and qualified health 
                                insurance options;
                                    ``(III) processing qualified health 
                                insurance costs credit eligibility 
                                certificates provided for under section 
                                7527 of the Internal Revenue Code of 
                                1986;
                                    ``(IV) providing assistance to 
                                eligible individuals in enrolling in 
                                health insurance coverage and qualified 
                                health insurance;
                                    ``(V) the development or 
                                installation of necessary data 
                                management systems; and
                                    ``(VI) any other expenses 
                                determined appropriate by the 
                                Secretary, including start-up costs and 
                                on going administrative expenses, in 
                                order for the State to treat at least 1 
                                of the options described in 
                                subparagraphs (B) through (H) of 
                                subsection (e)(1) of section 35 of the 
                                Internal Revenue Code of 1986 as 
                                qualified health insurance under that 
                                section.
                            ``(iii) Outreach.--To pay for outreach to 
                        eligible individuals to inform such individuals 
                        of available health insurance and qualified 
                        health insurance options, including outreach 
                        consisting of notice to eligible individuals of 
                        such options made available after the date of 
                        enactment of this clause.''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Qualified health insurance.--For purposes of this 
        subsection and subsection (g), the term `qualified health 
        insurance' has the meaning given that term in section 35(e) of 
        the Internal Revenue Code of 1986.''.
    (b) Funding.--Section 174(c)(1) of the Workforce Investment Act of 
1998 (29 U.S.C. 2919(c)(1)) is amended--
            (1) in the paragraph heading, by striking ``Authorization 
        and appropriation for fiscal year 2002'' and inserting 
        ``Appropriations''; and
            (2) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) to carry out subsection (a)(4)(A) of section 
                173--
                            ``(i) $10,000,000 for fiscal year 2002; and
                            ``(ii) $300,000,000 for the period of 
                        fiscal years 2004 through 2006; and''.
    (c) Report Regarding Failure To Comply With Requirements for 
Expedited Approval Procedures.--Section 173(f) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the 
end the following:
            ``(8) Report for failure to comply with requirements for 
        expedited approval procedures.--If the Secretary fails to make 
        the notification required under clause (i) of paragraph (3)(A) 
        within the 15-day period required under that clause, or fails 
        to provide the technical assistance required under clause (ii) 
        of such paragraph within a timely manner so that a State or 
        entity may submit an approved application within 2 months of 
        the date on which the State or entity's previous application 
        was disapproved, the Secretary shall submit a report to 
        Congress explaining such failure.''.
    (d) Clarification of Requirement To Establish Group Coverage 
Option.--Subsection (g) of section 35 of the Internal Revenue Code of 
1986 (relating to special rules) is amended--
            (1) by redesignating paragraph (9) as paragraph (11); and
            (2) by inserting after paragraph (8) the following:
            ``(9) Requirement to establish group coverage option.--With 
        respect to a State, no credit shall be allowed under this 
        section to an individual who resides in that State on or after 
        the date that is 2 years after the date of the enactment of 
        this paragraph unless, not later than such date, the State has 
        elected to have at least 1 of the options described in 
        subparagraphs (B) through (H) of subsection (e)(1) treated as 
        qualified health insurance under this section.
            ``(10) Group health plan.--For purposes of this section, 
        the term `group health plan' has the meaning given that term in 
        section 5000(b)(1).''.
    (e) Technical Amendment.--Effective as if included in the enactment 
of the Trade Act of 2002 (Public Law 107-210; 116 Stat. 933), 
subsection (f) of section 203 of that Act is repealed.

SEC. 206. ALIGNMENT OF COBRA COVERAGE WITH TAA PERIOD FOR TAA-ELIGIBLE 
              INDIVIDUALS.

    (a) ERISA.--Section 605(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1165(b)) is amended--
            (1) in the subsection heading, by inserting ``and 
        Coverage'' after ``Election''; and
            (2) in paragraph (2)--
                    (A) in the paragraph heading, by inserting ``and 
                period'' after ``Commencement'';
                    (B) by striking ``and shall'' and inserting ``, 
                shall''; and
                    (C) by inserting ``, and in no event shall the 
                maximum period required under section 602(2)(A) be less 
                than the period during which the individual is a TAA-
                eligible individual'' before the period at the end.
    (b) Internal Revenue Code of 1986.--Section 4980B(f)(5)(C) of the 
Internal Revenue Code of 1986 is amended--
            (1) in the subparagraph heading, by inserting ``and 
        coverage'' after ``election''; and
            (2) in clause (ii)--
                    (A) in the clause heading, by inserting ``and 
                period'' after ``Commencement'';
                    (B) by striking ``and shall'' and inserting ``, 
                shall''; and
                    (C) by inserting ``, and in no event shall the 
                maximum period required under paragraph (2)(B)(i) be 
                less than the period during which the individual is a 
                TAA-eligible individual'' before the period at the end.
    (c) Public Health Service Act.--Section 2205(b) of the Public 
Health Service Act (42 U.S.C. 300bb-5(b)) is amended--
            (1) in the subsection heading, by inserting ``and 
        Coverage'' after ``Election''; and
            (2) in paragraph (2)--
                    (A) in the paragraph heading, by inserting ``and 
                period'' after ``Commencement'';
                    (B) by striking ``and shall'' and inserting ``, 
                shall''; and
                    (C) by inserting ``, and in no event shall the 
                maximum period required under section 2202(2)(A) be 
                less than the period during which the individual is a 
                TAA-eligible individual'' before the period at the end.
                                 <all>
```