H. R. 3450—97
SEC. 507. TREATMENT 
OF 
SELF-EMPLOYMENT 
ASSISTANCE 
PRO-
GRAMS.
(a) GENERAL RULE.—Section 3306 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new sub-
section:
‘‘(t) SELF-EMPLOYMENT ASSISTANCE PROGRAM.—For the pur-
poses of this chapter, the term ‘self-employment assistance program’
means a program under which—
‘‘(1) individuals who meet the requirements described in
paragraph (3) are eligible to receive an allowance in lieu of
regular unemployment compensation under the State law for
the purpose of assisting such individuals in establishing a
business and becoming self-employed;
‘‘(2) the allowance payable to individuals pursuant to para-
graph (1) is payable in the same amount, at the same interval,
on the same terms, and subject to the same conditions, as
regular unemployment compensation under the State law,
except that—
‘‘(A) State requirements relating to availability for
work, active search for work, and refusal to accept work
are not applicable to such individuals;
‘‘(B) State requirements relating to disqualifying
income are not applicable to income earned from self-
employment by such individuals; and
‘‘(C) such individuals are considered to be unemployed
for the purposes of Federal and State laws applicable to
unemployment compensation,
as long as such individuals meet the requirements applicable
under this subsection;
‘‘(3) individuals may receive the allowance described in
paragraph (1) if such individuals—
‘‘(A) are eligible to receive regular unemployment com-
pensation under the State law, or would be eligible to
receive such compensation except for the requirements
described in subparagraph (A) or (B) of paragraph (2);
‘‘(B) are identified pursuant to a State worker profiling
system as individuals likely to exhaust regular unemploy-
ment compensation; and
‘‘(C) are participating in self-employment assistance
activities which—
‘‘(i) include entrepreneurial training, business
counseling, and technical assistance; and
‘‘(ii) are approved by the State agency; and
‘‘(D) are actively engaged on a full-time basis in activi-
ties (which may include training) relating to the establish-
ment of a business and becoming self-employed;
‘‘(4) the aggregate number of individuals receiving the
allowance under the program does not at any time exceed
5 percent of the number of individuals receiving regular
unemployment compensation under the State law at such time;
‘‘(5) the program does not result in any cost to the
Unemployment Trust Fund (established by section 904(a) of
the Social Security Act) in excess of the cost that would be
incurred by such State and charged to such Fund if the State
had not participated in such program; and
‘‘(6) the program meets such other requirements as the
Secretary of Labor determines to be appropriate.’’.
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H. R. 3450—98
(b) CONFORMING AMENDMENTS.—
(1) Section 3304(a)(4) of such Code is amended—
(A) in subparagraph (D), by striking ‘‘; and’’ and insert-
ing a semicolon;
(B) in subparagraph (E), by striking the semicolon
and inserting ‘‘; and’’; and
(C) by adding at the end the following new subpara-
graph:
‘‘(F) amounts may be withdrawn for the payment of
allowances under a self-employment assistance program
(as defined in section 3306(t));’’.
(2) Section 3306(f) of such Code is amended—
(A) in paragraph (3), by striking ‘‘; and’’ and inserting
a semicolon;
(B) in paragraph (4), by striking the period and insert-
ing ‘‘; and’’; and
(C) by adding at the end the following new paragraph:
‘‘(5) amounts may be withdrawn for the payment of allow-
ances under a self-employment assistance program (as defined
in subsection (t)).’’.
(3) Section 303(a)(5) of the Social Security Act (42 U.S.C.
503(a)(5)) is amended by striking ‘‘; and’’ and inserting ‘‘: Pro-
vided further, That amounts may be withdrawn for the payment
of allowances under a self-employment assistance program (as
defined in section 3306(t) of the Internal Revenue Code of
1986); and’’.
(c) STATE REPORTS.—Any State operating a self-employment
program authorized by the Secretary of Labor under this section
shall report annually to the Secretary on the number of individuals
who participate in the self-employment assistance program, the
number of individuals who are able to develop and sustain
businesses, the operating costs of the program, compliance with
program requirements, and any other relevant aspects of program
operations requested by the Secretary.
(d) REPORT TO CONGRESS.—Not later than 4 years after the
date of the enactment of this Act, the Secretary of Labor shall
submit a report to the Congress with respect to the operation
of the program authorized under this section. Such report shall
be based on the reports received from the States pursuant to sub-
section (c) and include such other information as the Secretary
of Labor determines is appropriate.
(e) EFFECTIVE DATE; SUNSET.—
(1) EFFECTIVE DATE.—The provisions of this section and
the amendments made by this section shall take effect on
the date of the enactment of this Act.
(2) SUNSET.—The authority provided by this section, and
the amendments made by this section, shall terminate 5 years
after the date of the enactment of this Act.
Subtitle B—Provisions Relating to
Performance Under the Agreement
SEC. 511. DISCRIMINATORY TAXES.
It is the sense of the Congress that when a State, province,
or other governmental entity of a NAFTA country discriminatorily
enforces sales or other taxes so as to afford protection to domestic
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H. R. 3450—99
production or domestic service providers, such enforcement is in
violation of the terms of the Agreement. When such discriminatory
enforcement adversely affects United States producers of goods
or United States service providers, the Trade Representative should
pursue all appropriate remedies to obtain removal of such discrimi-
natory enforcement, including invocation of the provisions of the
Agreement.
SEC. 512. REVIEW OF THE OPERATION AND EFFECTS OF THE AGREE-
MENT.
(a) STUDY.—By not later than July 1, 1997, the President
shall provide to the Congress a comprehensive study on the oper-
ation and effects of the Agreement. The study shall include an
assessment of the following factors:
(1) The net effect of the Agreement on the economy of
the United States, including with respect to the United States
gross national product, employment, balance of trade, and cur-
rent account balance.
(2) The industries (including agricultural industries) in the
United States that have significantly increased exports to Mex-
ico or Canada as a result of the Agreement, or in which imports
into the United States from Mexico or Canada have increased
significantly as a result of the Agreement, and the extent
of any change in the wages, employment, or productivity in
each such industry as a result of the Agreement.
(3) The extent to which investment in new or existing
production or other operations in the United States has been
redirected to Mexico as a result of the Agreement, and the
effect on United States employment of such redirection.
(4) The extent of any increase in investment, including
foreign direct investment and increased investment by United
States investors, in new or existing production or other oper-
ations in the United States as a result of the Agreement,
and the effect on United States employment of such investment.
(5) The extent to which the Agreement has contributed
to—
(A) improvement in real wages and working conditions
in Mexico,
(B) effective enforcement of labor and environmental
laws in Mexico, and
(C) the reduction or abatement of pollution in the
region of the United States-Mexico border.
(b) SCOPE.—In assessing the factors listed in subsection (a),
to the extent possible, the study shall distinguish between the
consequences of the Agreement and events that likely would have
occurred without the Agreement. In addition, the study shall evalu-
ate the effects of the Agreement relative to aggregate economic
changes and, to the extent possible, relative to the effects of other
factors, including—
(1) international competition,
(2) reductions in defense spending,
(3) the shift from traditional manufacturing to knowledge
and information based economic activity, and
(4) the Federal debt burden.
(c) RECOMMENDATIONS
OF
THE PRESIDENT.—The study shall
include any appropriate recommendations by the President with
respect to the operation and effects of the Agreement, including
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H. R. 3450—100
recommendations with respect to the specific factors listed in sub-
section (a).
(d) RECOMMENDATIONS OF CERTAIN COMMITTEES.—The Presi-
dent shall provide the study to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate and any other committee that has jurisdiction over
any provision of United States law that was either enacted or
amended 
by 
the 
North 
American 
Free 
Trade 
Agreement
Implementation Act. Each such committee may hold hearings and
make recommendations to the President with respect to the oper-
ation and effects of the Agreement.
SEC. 513. ACTIONS AFFECTING UNITED STATES CULTURAL INDUS-
TRIES.
Section 182 of the Trade Act of 1974 (19 U.S.C. 2242)
is amended by adding at the end the following new subsection:
‘‘(f) SPECIAL RULE
FOR ACTIONS AFFECTING UNITED STATES
CULTURAL INDUSTRIES.—
‘‘(1) IN GENERAL.—By no later than the date that is 30
days after the date on which the annual report is submitted
to Congressional committees under section 181(b), the Trade
Representative shall identify any act, policy, or practice of
Canada which—
‘‘(A) affects cultural industries,
‘‘(B) is adopted or expanded after December 17, 1992,
and
‘‘(C) is actionable under article 2106 of the North Amer-
ican Free Trade Agreement.
‘‘(2) SPECIAL
RULES
FOR
IDENTIFICATIONS.—For purposes
of section 302(b)(2)(A), an act, policy, or practice identified
under this subsection shall be treated as an act, policy, or
practice that is the basis for identification of a country under
subsection (a)(2), unless the United States has already taken
action pursuant to article 2106 of the North American Free
Trade Agreement in response to such act, policy, or practice.
In deciding whether to identify an act, policy, or practice under
paragraph (1), the Trade Representative shall—
‘‘(A) consult with and take into account the views of
representatives of the relevant domestic industries, appro-
priate committees established pursuant to section 135, and
appropriate officers of the Federal Government, and
‘‘(B) take into account the information from such
sources as may be available to the Trade Representative
and such information as may be submitted to the Trade
Representative by interested persons, including information
contained in reports submitted under section 181(b).
‘‘(3) CULTURAL
INDUSTRIES.—For purposes of this sub-
section, the term ‘cultural industries’ means persons engaged
in any of the following activities:
‘‘(A) The publication, distribution, or sale of books,
magazines, periodicals, or newspapers in print or machine
readable form but not including the sole activity of printing
or typesetting any of the foregoing.
‘‘(B) The production, distribution, sale, or exhibition
of film or video recordings.
‘‘(C) The production, distribution, sale, or exhibition
of audio or video music recordings.
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